China Archives - FINANCIAL POST

<strong>Jidu Auto’s shutdown signals trouble in China’s EV market</strong>

20Dec

By Michael SmithNo Comments

China, Market

Jidu Auto’s shutdown signals trouble in China’s EV market

Jidu Auto, a rising star in the Electric Vehicle (EV) sector, grabbed headlines just a few months ago with the launch of its second model. However, the company abruptly announced massive layoffs and the closure of its operations this week, stirring concerns about an impending shakeout in China's EV industry. "It's over. Don't watch anymore; we're shutting down. Just leave. Yes, our car company has gone bankrupt. It happened today. Leave quickly," declared a Jidu Auto live stream host tearfully, highlighting the shock and devastation among the employees. On December 13th, BYD and Geely released a joint statement revealing that Jidu Auto would undergo layoffs and cease operations. The statement cited "tremendous changes" in the industry's competitive landscape, making the curre...

<strong>Challenges in China’s expanded pension program</strong>

16Dec

By Walter ParezNo Comments

China

Challenges in China’s expanded pension program

China’s expansion of its private pension fund pilot program is a significant step toward addressing the country’s looming retirement payout strains. The program, which was rolled out in 36 cities since 2022, allows workers to contribute up to 12,000 yuan ($1,650) to tax-sheltered accounts similar to Individual Retirement Accounts (IRAs) in the US. This initiative is a part of China’s broader pension reform aimed at managing the financial demands of a rapidly aging population, with over 400 million people expected to be 60 or older by 2035. However, the program has encountered several challenges. Disappointing fund performance and a lack of investor interest are among the primary issues. Despite the initial excitement among global money managers, including BlackRock Inc., and ...

<strong>Africa’s trade deficit with China continues to widen</strong>

15Dec

By Walter ParezNo Comments

China, World

Africa’s trade deficit with China continues to widen

African countries suffer from the trade deficit with China, which has continued to swell. In 2023, the exports from China were in surplus by USD 63 billion, while the trade deficit in 2022 was USD 49 billion. In 2021, the trade deficit was USD 39 billion. These figures showed the gap between the exports between China and Africa has increased at a high rate. Since China implemented the Belt Road Initiative, its trade with African countries has increased but it did not benefit the latter. In 2023, the overall trade grew by 1.5 percent year-on-year. However, African exports to China showed a decrease of 6.7 percent to USD 109 billion. On the other hand, Chinese exports to the continent grew by 7.5 percent USD 173 billion. China has taken full advantage of the African Continental Fr...

A new dollar bloc: Reglobalization in the face of United States-China hostilities

3Dec

By TheGreenZoneNo Comments

Asia, China, Market, USA

A new dollar bloc: Reglobalization in the face of United States-China hostilities

The fragmenting of free trade and the rise of industrial policy have resulted in the nascent formation of a trade, finance and currency bloc organized around American economic and security interests. Although not formalized, the democracies in the West and their primary trading partners in Asia, excluding China, appear to be coalescing around mutual economic and security interests in a de facto dollar bloc, with the U.S. Federal Reserve as the lender of last resort. A trading bloc of democracies would include more than 56% of the world’s gross domestic product. China, by contrast, has a 16.8% share of world GDP, while India has 3.4% and Russia 1.9%. In some respects, this dollar bloc evolved out of the crucible of the 2008−09 financial crisis and lessons learned around supply cha...

China’s EV domination is humiliated by Europe’s battery issue.

30Nov

By TheGreenZoneNo Comments

Asia, China

China’s EV domination is humiliated by Europe’s battery issue.

While many businesses worldwide are wringing their hands about Donald Trump’s plans for a “beautiful” tariff war – targeting Canada, Mexico and China on his first day back in the Oval Office – my attention was focused on the sub-Arctic town of Skelleftea in Sweden and the collapse of Northvolt, Europe’s electric-vehicle battery champion. Richard Milne at the Financial Times called Northvolt’s resort to Chapter 11 bankruptcy protection, with US$5.8 billion of debts and just US$30 million cash in its coffers, a “Nordic noir thriller”. The collapse is nothing less than a dagger thrust into the heart of Europe’s future as a global automotive industry leader. Volkswagen has written down most of its 21 per cent stake in the venture. Goldman Sachs is writing off US$896 million in th...

29Nov

By TheGreenZoneNo Comments

Asia, China, Market

Asia in denial

I saw nothing but denial in my recent post-US election tour of Asia, with stops in Hong Kong, Shenzhen, Beijing, and Singapore. Taking a cue from surging global equity markets, Asians are making every effort to wish away problems at home and abroad. Nowhere is this more evident than in China. President Xi Jinping has long stressed his preference for the “good stories of China” (bit.ly/3Z8EI75). Amid the most serious Chinese economic slowdown since the 1970s, government attempts to put a positive spin (bit.ly/3Ozky0R) on the country’s outlook have intensified. An improvement in equity-market sentiment (bit.ly/4fL6ZaO) — by October 8, the CSI 300 was 35% above its low on September 13 — was the first talking point in all my discussions. Never mind that this rebound, which has si...

The diplomatic ties between China and Pakistan have reached a low point.

28Nov

By TheGreenZoneNo Comments

Asia, China

The diplomatic ties between China and Pakistan have reached a low point.

As if Pakistan’s government wasn’t under pressure enough – with thousands of protesters on the streets and the capital Islamabad in lockdown amid calls to release former prime minister Imran Khan – relations with neighbouring China are also going from bad to worse. Beijing’s growing anger over the safety of its citizens in Pakistan has been illustrated by a surprising diplomatic spat. “It is unacceptable for us to be attacked twice in only six months,” declared China’s ambassador in Islamabad Jiang Zaidong in an unusually direct response to comments made by a senior Pakistan politician seen to be downplaying the risk. “President Xi [Jinping] cares about Chinese people’s security and puts people’s lives first,” Jiang went on to say. “He especially cares about the security of t...

28Nov

By TheGreenZoneNo Comments

Asia, China, World

The diplomatic ties between China and Pakistan have reached a low point.

As if Pakistan’s government wasn’t under pressure enough – with thousands of protesters on the streets and the capital Islamabad in lockdown amid calls to release former prime minister Imran Khan – relations with neighbouring China are also going from bad to worse. Beijing’s growing anger over the safety of its citizens in Pakistan has been illustrated by a surprising diplomatic spat. “It is unacceptable for us to be attacked twice in only six months,” declared China’s ambassador in Islamabad Jiang Zaidong in an unusually direct response to comments made by a senior Pakistan politician seen to be downplaying the risk. “President Xi [Jinping] cares about Chinese people’s security and puts people’s lives first,” Jiang went on to say. “He especially cares about the security of t...

Beyond the inner ring of the Communist Party, a small group of well-known economists make up the “brain trust” that shapes economic policy.

28Nov

By TheGreenZoneNo Comments

Asia, China, Market

Beyond the inner ring of the Communist Party, a small group of well-known economists make up the “brain trust” that shapes economic policy.

Who truly has Beijing’s ear when it comes to economic policymaking? As China navigates a period of profound economic challenges, this question has taken on new urgency. While outsiders often perceive China’s economic policies as dictated in a top-down, insulated manner, the reality is more nuanced. Policy-making in Beijing frequently involves regular engagement with trusted experts through roundtables, study sessions, and advisory committees. The voices shaping economic strategy extend beyond the Chinese Communist Party (CCP)’s inner circle to include a select “brain trust” of economists whose ideas inform and influence key decisions. To understand China’s policy direction, it is crucial to identify this brain trust. Our project does just that by analyzing the perspectives of econom...

<strong>China’s banking crisis deepens: Transfer limits slashed to $69</strong>

28Nov

By Joe RodriguezNo Comments

China

China’s banking crisis deepens: Transfer limits slashed to $69

China's economy continues to decline and following the frenzy of real estate investment the country's banking system has plunged into a crisis. Citizens are not only grappling with unemployment and wage cuts but are also facing difficulties in withdrawing funds from their bank accounts. Many users believe that the reduction in bank card transfer for limits is a deliberate measure to restrict Capital outflows, according to a recent report by Beijing News Shell Finance numerous bankcard users have found their accounts subject to transfer limits without prior notification. Many people have gone to Bank branches to withdraw cash in order to restore normal use of their accounts while some card holders have simply given up using their cards altogether. Since the second half of this year ...

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