White House levy to protect US makers from cheap imports likely to inflame trade tensions
The US president, Joe Biden, has announced a 100% tariff on Chinese-made electric vehicles as part of a package of measures designed to protect US manufacturers from cheap imports.
In a move that is likely to inflame trade tensions between the world’s two biggest economies, the White House said it was imposing more stringent curbs on Chinese goods worth $18bn.
Continue reading...President likely to add sectors such as electric vehicles, batteries and solar cells to range of levies set up under Donald Trump
Joe Biden is expected as early as next week to announce fresh tariffs on Chinese trade, with levies focused on strategic sectors including electric vehicles, in a review of measures first put into place under Donald Trump.
An announcement planned for Tuesday will keep the blanket tax rises introduced by the president’s predecessor but supplement them with targeted levies on industries connected to EVs, including batteries and solar cells, according to reports.
Continue reading...Deal to use mapping data from web search giant Baidu is a big step towards launching driver assistance tech in world’s biggest car market
Elon Musk’s visit to China has reportedly reaped immediate rewards with a deal for Tesla to use mapping data provided by web search company Baidu, a big step in introducing driver assistance technology in the world’s largest car market.
Musk made an unannounced visit to China over the weekend. The billionaire posted a picture of his meeting with the Chinese premier, Li Qiang, on X, the social network he took over in 2022.
Continue reading...Fitch cut to negative comes as country moves away from reliance on growth from property sector
Fitch has downgraded the outlook on China’s debt as it warned of increased risks to the economy while the country moves away from its reliance on growth from the property sector.
On Wednesday the US-based agency said it had revised China’s sovereign credit rating from stable to negative, saying this reflected the “increasing risks to China’s public finance outlook” as the country “contends with more uncertain economic prospects”.
Continue reading...Revenue at Chinese telecom rose 10% as net profit more than doubles
Chinese telecoms firm Huawei grew faster in 2023 than it has for four years, as it shrugged off the impact of US sanctions.
Revenues rose by nearly 10% to 704.2bn yuan (£77bn) as the Shenzhen-based company enjoyed a rebound within its consumer segment, which includes smartphone handsets.
Continue reading...China’s Longi looks to slash costs as renewable energy sector faces tough headwinds from inflation
The world’s largest solar manufacturer has slashed nearly a third of its workforce after a cost-cutting drive that included telling staff to only print in black and white fell short and as a chill ripples through the renewable energy sector.
China’s Longi is to cut as much as 30% of its workforce, in an acceleration of cost reductions that began late last year, Bloomberg reported.
Continue reading...Deal between Japanese carmakers involves components and software amid race to catch up with Chinese EV firms
Honda and Nissan have put aside the “traditional approach” of fierce rivalry to join forces and work together on electric vehicle technology as Japan’s carmakers try to catch up with Chinese competitors.
The Japanese manufacturers will work together on technology for EVs, including components and software, after signing a memorandum of understanding on Friday.
Continue reading...Case of Emily Chen, who did a few months’ work for US logistics firm, highlights ‘deteriorating’ climate for foreign firms
China has detained one of its citizens on spying charges after she did some work for a US company, in a case that experts say highlights the potential risks of working for foreign businesses in the country.
Emily Chen, 50, disappeared after flying into Nanjing Lukou international airport in December on a visit from Doha, where she lives.
Continue reading...Plunge in consumer prices has fuelled calls for a stimulus package – yet Beijing may stick to the new normal of lower growth
• China consumer prices plunge at fastest rate for 15 years
China’s economy has gone from bad to worse – and it is only February.
Figures released on Thursday showed consumer prices fell by 0.8% in January compared with a year earlier, outstripping economists’ expectations and marking the biggest contraction in 15 years.
Continue reading...Plummeting food prices feed steep annual drop amid renewed calls to stimulate economy and offset weakening demand
China’s consumer prices fell at their fastest pace in 15 years in January, as the world’s second-largest economy sank deeper into deflation amid weakening demand.
Data released on Thursday showed that China’s consumer price index tumbled last month, falling by 0.8% compared with a year earlier. It marks the fourth consecutive month of declines, as well as the sharpest drop since September 2009, when the global economy was still grappling with aftershocks from the 2008 banking crisis.
Continue reading...World Snooker and PDC World Darts owner Matchroom weighs up India and south-east Asia amid feared overreliance on China
The owner of the Masters snooker tournament is plotting an expansion trail across Asia after the pandemic exposed the company’s reliance on China, its chair has revealed.
Steve Dawson, the chief executive of World Snooker Ltd, told the Guardian it was considering staging tournaments in India, Pakistan, Malaysia and Thailand, after its business was held back by three years of Beijing-imposed Covid lockdowns.
Continue reading...Record high youth unemployment and struggling property sector are among increasingly sensitive topics
China is cracking down on negative commentary about the financial market and other sectors as the authorities seek to boost public confidence despite challenging economic headwinds.
This month the Weibo account Weibo Finance, which has more than 1.5 million followers, issued an instruction against posting any comments “that bad-mouth the economy”. The post appears to have since been deleted. Bloomberg reported that several other finance influencers had been told by Weibo to “avoid crossing red lines” and to post less about the economy. Weibo did not reply to a request for comment.
Continue reading...European Commission chief Ursula von der Leyen to meet Chinese president Xi Jinping at summit on Thursday
The EU is to tell China that its €400bn (£343bn) trade deficit is not sustainable long term amid fears that it will flood the bloc with subsidised electric cars, solar panels and medical devices, threatening European manufacturing and jobs.
Ursula von der Leyen, the European Commission chief, and Charles Michel, the European Council president, will meet Xi Jinping at a summit on Thursday, the second of its kind this year.
Continue reading...Rating agency says Beijing may need to bail out local governments as property sector collapses
China’s ability to repay its government borrowing has been downgraded by the credit rating agency Moody’s, which said the ripple effects from a crisis in the property sector would undermine efforts to revive its flagging economy.
Moody’s warned that Beijing would need to bail out local and regional governments and state-owned enterprises that were struggling with rising debts, hampering efforts to boost investment and growth.
Continue reading...Hong Kong court gives property developer until 29 January to formulate deal for creditors
The property developer Evergrande has been granted an extension until late January to try to restructure its debts and avoid liquidation in one of the most high-profile cases in China’s long-running property crisis.
Evergrande was once China’s biggest property developer, but a default on offshore debt obligations in 2021 started a lurch from one crisis to another. It has reported debts of more than $300bn (£237bn), much of it to individuals whose properties were never built.
Continue reading...Zhongzhi, a wealth manager with links to China’s ailing property market, says it is ‘severely insolvent’
One of China’s biggest financial conglomerates with links to the country’s ailing property market has admitted a shortfall of nearly £30bn as it warned investors that it is “severely insolvent”.
Zhongzhi, an asset and wealth management company in China’s shadow banking sector, said its total assets amounted to 200bn yuan (£22.5bn) against obligations of up to 460bn yuan, in a letter to shareholders issued on Wednesday.
Continue reading...Bank criticised by MPs for being too slow to reward savers as it announces 15% rise in net interest income and $3bn share buyback
Higher interest rates helped HSBC to more than double its profits and hand over $3bn (£2.5bn) to shareholders, as MPs criticised the largest UK banks for being too slow to reward savers.
The London-headquartered bank said it was launching a share buyback, and paying a dividend worth 10 cents a share, after what its chief executive, Noel Quinn, hailed as “three consecutive quarters of strong financial performance”.
Continue reading...Tax audits and land use inquiries follow company founder announcing run for Taiwan presidency
China’s tax authorities have launched multiple investigations into the company that makes the iPhone, months after its billionaire founder announced he would run in Taiwan’s presidential elections.
Foxconn faces tax audits of its operations in China, as well as investigations into land use in two Chinese provinces, according to reports by local media.
Continue reading...Property developer denies claims founder and chair have left country amid reports it missed key deadline
The crisis in China’s property sector deepened as Country Garden, the country’s biggest developer by sales, reportedly missed its final deadline for an interest payment on a dollar bond, putting it at risk of default.
The company, which has about $200bn (£163bn) in liabilities and nearly $11bn in dollar-denominated offshore bonds, was due to make a $15.4m coupon repayment this week, but failed to do so, according to reports. Its share price fell 4% in Hong Kong on Thursday, and is down 74% since the beginning of the year.
Continue reading...Government stimulus gains some traction in third quarter as property downturn continues
China’s economy grew at a faster than expected rate in the third quarter, suggesting the recent flurry of policy measures is helping to bolster a tentative recovery in the world’s second-biggest economy.
Rapidly weakening growth in China since the second quarter has prompted authorities to step up support, with Wednesday’s data indicating the stimulus is starting to gain traction, although a property crisis and other problems continue to pose risks.
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