China

China's financial market demonstrates high resilience and operates smoothly amid tariffs imposed by the United States, People's Bank of China (PBC) Deputy Governor Zou Lan said on Monday."Regarding China, the economy has started off well and continues to grow. The financial system remains sound and the financial market has shown high resilience and is running smoothly. The yuan's exchange rate against the dollar is around 7.3 yuan," Zou told a news conference, reported Sputnik/RIA Novosti.At the same time, a significant increase in customs tariffs by the US triggered fluctuations in global financial markets and led to a fall in the dollar index, as well as caused a rise in US Treasury bond yields, the deputy governor said, adding that the decision also increased volatility in the US stock...

At a recent business forum in Beijing, leaders from major global companies aimed to meet with Chinese President Xi Jinping, however, many were particularly impressed by Vice Premier He Lifeng, Xi’s trusted confidant and chief lieutenant, who oversees China’s economy. U.S. President Donald Trump has urged Xi to discuss a potential trade deal after imposing 145% tariffs on Chinese goods. However, any resolution to the economic tensions will likely go through He, Xi’s Sino-American trade tsar. Reuters interviewed 13 foreign investors and diplomats who met with Vice Premier He Lifeng over the past year. They noted his transformation from a rigid Communist Party official with limited English and a reliance on prepared speeches into a more confident, results-driven leader. He also holds s...

Chinese tech giant Huawei is getting ready to test its new and most powerful artificial intelligence processor, according to a new report. Huawei Technologies is keen to replace some higher-end semiconductors produced by US chip giant Nvidia, the Wall Street Journal reported on Sunday. Huawei has approached some Chinese tech companies about testing the technical feasibility of the new chip, called the Ascend 910D, the report said, citing people familiar with the matter.The Chinese company hopes that the latest iteration of its Ascend AI processors will be more powerful than Nvidia’s H100, and is slated to receive the first batch of samples of the processor as early as late May, the report added. Reuters reported on Monday that Huawei plans to begin mass shipments of its advanced ...

Foreign manufacturers in China are paying duties of 125 per cent to import components and then 145 per cent to export to the US as Donald Trump’s trade war hammers their operations. International companies and joint ventures account for nearly one-third of China’s total trade, according to official data that makes clear the extent of their exposure to tariffs. Large US companies such as Apple and Tesla and many smaller producers rely on China as a manufacturing base. These companies often import raw materials or components from the US for assembly into products that are then exported. This leaves them exposed to the possibility of paying both US and Chinese tariffs on the same goods, economists said, after Trump sharply escalated levies on all Chinese exports to 145 per cent, lea...

China warned a G20 meeting that world economic growth was "insufficient" as tariff and trade wars exacerbated economic and financial instability and sapped growth momentum, its finance ministry and central bank said.Speaking at the group's meeting in Washington, Finance Minister Lan Foan called on all parties to strengthen multilateral cooperation, saying that China supported dialogue and consultation "on equal footing" to settle trade and tariff disputes.Meanwhile, People's Bank of China Governor Pan Gongsheng said that economic fragmentation and trade tensions had disrupted supply chains, weakening the momentum of global economic growth, the central bank said in a separate readout on Friday.Pan also told the meeting, which took place on Wednesday and Thursday, that the world's major eco...

Apple plans to relocate its US-sold iPhones’ source from China to India, and they are planning this as early as next year, as reported in the Financial Times. This decision comes amid the escalation of trade tension between China and the USA due to the tariffs laid down by US President Donald Trump on Chinese goods. Apple assembles approximately 90% of its iPhones in China, and thus the company wants to diversify its sourcing and production. China has played a very crucial role in Apple’s manufacturing journey, as it accounts for around 80% of the company’s production along with 40% of its suppliers based there. Whereas in India, Apple has produced iPhones worth $22 billion in FY25, a 60% hike from last year. The Foxconn’s factories set up in Tamil Nadu and Karnataka have made it possi...

China plans to help struggling businesses with targeted measures in the face of “increased external shocks,” according to a readout of a meeting chaired Friday by President Xi Jinping. The meeting of the Politburo, the second most powerful political body in China, comes as tensions between Washington and Beijing have escalated this month with new tit-for-tat tariffs of more than 100%. Major Wall Street banks have cut their China GDP forecasts for the year as a result, while the country still strives to achieve its lofty goal of “around 5%” growth set in March. Authorities called for “multiple measures to help businesses in difficulty,” such as financial support, according to the Chinese-language readout, translated by CNBC. The Politburo also called for “timely reduction” of inte...

In a significant move in the ongoing trade war with the United States, China is considering exempting some American imports from its steep 125% retaliatory tariffs. The Ministry of Commerce has formed a task force to collect information from businesses and identify goods that could be eligible for exemptions, according to a source familiar with the discussions. The move, first reported by Bloomberg, suggests that Beijing may be softening its hardline stance as fears of economic slowdown intensify. Financial magazine Caijing cited sources claiming that eight semiconductor-related items—though notably excluding memory chips—are being considered for exemption. Meanwhile, a widely circulated list of 131 product categories, including vaccines, chemicals, and jet engines, has sparked specula...

The downgrading of Fitch Ratings for China, from China’s long-term foreign-currency issuer default rating (IDR) from ‘A+’ to ‘A,’ clearly confirms that China’s economic problems are becoming more fully recognized by the day. It signals the weakening of China’s public finances and the rising trajectory of public debt. The downgrade also highlights China’s long-running debt crisis in the property sector and persistently low consumption. However, it will be extremely difficult for the Xi government to deny that economic policies are flawed. The downgrade has dealt a significant blow to China’s global reputation and standing amid a rapidly shifting global geo-economic situation. Embarrassed by the rating’s forecast, China's Finance Ministry criticized the downgrade. A ministry spoke...