China

The worldwide market is being revolutionized by China’s electric car sector.
Asia, China, Market, World

The worldwide market is being revolutionized by China’s electric car sector.

The global electric vehicle market has become a critical component in the transition towards a low-carbon future. At the forefront of this revolution is China, whose rapid ascent in the EV industry has left global automakers scrambling to keep pace. Despite trade tensions and tariffs aimed at curbing its dominance, China remains the undisputed leader in the sector, producing more than 60% of the world’s EVs. China’s success in the electric vehicle industry can be traced back to a combination of forward-thinking policies, substantial investments, and a national commitment to innovation. The story begins with a strategic proposal made by Wan Gang, often referred to as the father of the EV movement in China. His vision, presented to the Chinese State Council in 2000, emphasised the need f...
Trump says if China assaults Taiwan, he would impose heavy tariffs.
Asia, China, USA, World

Trump says if China assaults Taiwan, he would impose heavy tariffs.

US Republican presidential candidate and former US President Donald Trump said he would impose additional tariffs at “150% to 200%” on China if it were to "go into Taiwan," the Wall Street Journal reported Friday (Oct. 18). When asked whether he would use military force in response to a potential Chinese blockade of Taiwan, Trump said it wouldn’t be necessary because Chinese President Xi Jinping (習近平) respects him. “I wouldn’t have to, because he respects me and he knows I’m f— crazy,” Trump stated. During his presidency from 2017 to 2021, Trump took an aggressive stance on China. He imposed multiple rounds of tariffs that triggered a trade war and affected the global economy, according to Reuters. Trump also addressed Russia’s invasion of Ukraine in the interview,...
Everyone is affected by China’s economic slowdown; it’s not just a personal issue.
Asia, China, Market, World

Everyone is affected by China’s economic slowdown; it’s not just a personal issue.

Issues in a country can have a rippling effect felt by its neighbours and countries far across the globe. The reason behind this is globalisation, which doubtless, has its benefits but has also increased the linkage and dependencies between countries.  For example, Sri Lanka’s economic turmoil, which began in 2019, negatively impacted the businesses of Indian companies such as Reliance, Ashok Leyland and Tata Motors, but also opened more doors for India in the tea market. Because of the crisis, Sri Lanka’s primary tea exports fell significantly, and India took this opportunity to fill this gap in the global market.  Similarly, China’s economic slowdown is causing shock waves not only in the country but also across the global economy. Here’s a detailed picture.  Why...
Asia, China, Market

An Overview of the Chinese Economy, October 2024

China’s economy expanded by 4.6% yoy in Q3 2024 – broadly in line with our expectations – marginally slower than at 4.7% yoy growth recorded in Q2. We have argued for some time that the full year target of “around 5%” would be difficult to reach – indeed it would take a sizeable acceleration in activity in Q4, something we consider unlikely given the lack of meaningful fiscal stimulus to date. Should such a program occur following the National People’s Congress in late October, it likely implies more upside risk to our 2025 forecasts than 2024. Our growth forecasts are unchanged – we see an increase of 4.7% yoy in 2024, before easing to 4.6% in 2025, with the property sector and weak domestic demand remaining headwinds to growth Growth in China’s industrial production was slightly str...
Asia, China, Market

The economic slump in China gets worse.

China's economy expanded in the third quarter at the slowest pace since early last year, as the country struggles to boost flagging growth. On an annual basis, gross domestic product (GDP) rose by 4.6% in the three months to the end of September,according to China's National Bureau of Statistics. That is less than the previous quarter and below the government's "around 5%" target for this year. But it was slightly better than analysts expected, while other official figures released on Friday, including retail sales and factory output, also beat forecasts. In recent weeks, Beijing has announced a number of measures aimed at supporting growth. This is the second quarter in a row that China's official measure of economic growth has fallen below the 5% target, which will add to...
Tariffs Are Necessary For Combating The China Threat
China

Tariffs Are Necessary For Combating The China Threat

The Chinese Communist Party (CCP) poses an unprecedented threat to global stability and American interests. As the CCP aggressively pursues economic dominance and military superiority, the United States must employ every tool at its disposal to counter this challenge. Among these tools, tariffs stand out as a potent weapon in the economic war against communist China. The CCP's ambitions are clear and alarming. Under the guise of "peaceful rise," the party has systematically exploited the global economic system, engaged in widespread intellectual property theft, and pursued predatory trade practices that have decimated American manufacturing. The CCP's ultimate goal is not merely economic success, but global hegemony, with the United States as its primary obstacle. To achieve thi...
Would China’s latest stimulus be sufficient to boost its economy?
Asia, China, Market

Would China’s latest stimulus be sufficient to boost its economy?

In September, China’s central bank announced its most aggressive measures since the pandemic to get its economy back on track after it became clear the country might miss its 5 percent gross domestic product (GDP) growth target for 2024. The world’s second-largest economy is still struggling from the lingering side-effects of COVID-19 – when China implemented some of the longest and harshest lockdowns – to the collapse of its property sector in 2021, and deeper societal changes like a falling birthrate and ageing population. Beijing has so far avoided the kind of 4 trillion RMB ($586bn) stimulus it used in 2008 following the global financial crisis, but its latest moves have been met with a positive response from investors. Observers, however, wonder whether it will be enough. Wh...
<strong>China’s stimulus plan disappoints</strong>
China

China’s stimulus plan disappoints

China's recent stimulus plan has left many analysts and investors underwhelmed, as it falls short of addressing the deep-rooted economic challenges facing the country. Despite hopes for a robust package to revive growth, the measures announced have been seen as insufficient to tackle issues such as sluggish consumer spending, mounting debt, and a faltering property market. The plan includes modest tax cuts, increased infrastructure spending, and support for small businesses, but critics argue that these steps lack the boldness needed to spur significant economic recovery. Additionally, the plan's limited scope has raised concerns about the government's commitment to structural reforms and long-term economic stability. As a result, market reactions have been tepid, with stock indices a...
A detailed examination of China’s economic predicament and the ways in which inexperience is escalating it
China, Market

A detailed examination of China’s economic predicament and the ways in which inexperience is escalating it

This is the first in a three-part series delving into the unprecedented challenges China is facing on its road to economic recovery, from inexperience in dealing with such crises to the compounding implications of internal demographic shifts and external trade hurdles. The topsy-turvy roller-coaster ride that has seen China’s economy teetering on the rails for the past four years has left Zack Yao clinging to whatever business he can muster while struggling to determine when the wild ride will end. At 37 years old, the seller of electric power tools in the eastern province of Zhejiang has never experienced anything like the series of ups and downs that accompanied China’s pandemic years and subsequent attempts to return to economic normality. “I can still feel the sting...
Can China’s lethargic economy be revived by the massive stimulus spending the government is planning?
Asia, China, Market

Can China’s lethargic economy be revived by the massive stimulus spending the government is planning?

China’s relentless economic growth used to be the marvel of the world. Oh, what a memory. The past couple of years have seen China contend with an economic slowdown amid colliding crises, many of which make it internationally unique. Consumer prices have been approaching deflationary territory, there’s an oversupply of housing, and youth unemployment has soared. Mounting pressure has forced the Chinese government to step in. Over the past month, Beijing has put forward a set of significant economic stimulus measures aimed at reviving China’s faltering economy. According to a research note by Deutsche Bank, this stimulus could potentially become “the largest in history” in nominal terms. But there’s still a lot we don’t know. So what kinds of measures that are ...