China

Following a vote, an EU executive is ready to impose duties on Chinese electric vehicles.
5Oct mmBy Walter ParezNo Comments
China, Market, World

Following a vote, an EU executive is ready to impose duties on Chinese electric vehicles.

The European Commission said on Friday it had received enough support in a vote of EU members to impose tariffs of up to 45% on imports of Chinese-made electric vehicles in the bloc's highest-profile trade case, risking retaliation from Beijing. France-based broadcaster Euronews cited diplomatic sources as saying that Poland voted in favor of the move, but Germany, the region's biggest economy and major car producer, opposed it.The European Commission, which oversees the bloc's trade policy, has proposed final duties for the next five years to counter what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation.In a vote on Friday, 10 EU members backed tariffs and five voted against, with 12 abstentions, EU sources said.It would have taken opposition from a qua...
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The European Union decides to levy taxes on electric cars made in China.
5Oct mmBy Joe RodriguezNo Comments
Asia, China, Market, World

The European Union decides to levy taxes on electric cars made in China.

The European Union on Friday voted to adopt definitive tariffs on China-made battery electric vehicles (BEVs). “Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the EU said in a statement. The EU first announced that it would slap higher tariffs on Chinese electric vehicle imports in June, on the grounds that they benefited “heavily from unfair subsidies” and posed a “threat of economic injury” to electric vehicle producers in Europe. Duties were also disclosed for individual companies, depending on the extent of their cooperation with the probe. Provisional duties were put in place from early Jul...
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4Oct mmBy Walter ParezNo Comments
Asia, China, Market

Can Xi improve China’s economy as it celebrates its 75th birthday?

As China prepared to celebrate its Golden Week holiday and mark the 75th anniversary of the People’s Republic, the ruling Communist Party rolled out a raft of measures aimed at boosting its ailing economy. The plans included help for the country's crisis-hit property industry, support for the stock market, cash handouts for the poor and more government spending. Shares in mainland China and Hong Kong chalked up record gains after the announcements. But economists warn the policies may not be enough to fix China's economic problems. Some of the measures announced by the People's Bank of China (PBOC) on 24 September took direct aim at the country's beaten-down stock market. The new tools included funding worth 800bn yuan ($114bn; £85.6bn) that can be borrowed by insurers, bro...
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China’s Real Estate Market: An Analysis of the Boom and Bust
1Oct mmBy Joe RodriguezNo Comments
Asia, China, Market

China’s Real Estate Market: An Analysis of the Boom and Bust

China’s property sector is sinking. Once the economic backbone by which hundreds of million Chinese went from poverty to the middle class, the industry is now seeing slumps in the value of real estate that threaten not only household wealth and revenue for local governments, but also the overall growth of the Chinese economy, a key indicator of the Chinese Communist Party’s legitimacy and right to rule.  Behemoth property developers such as Evergrande and Country Garden have gone under. In an attempt to mitigate the fallout, Chinese authorities last week rolled out stimulus measures designed to stabilize the market and to prevent the downward spiral that has seen the value of new homes sold drop by over 23 percent through August 2024.   In the Unit...
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What do Chinese people think of Xi Jinping’s concerns about the economy?
1Oct mmBy Walter ParezNo Comments
Asia, China, Market, World

What do Chinese people think of Xi Jinping’s concerns about the economy?

China’s sputtering economy has its worried leaders pulling out all the stops. They have unveiled stimulus measures, offered rare cash handouts, held a surprise meeting to kickstart growth and tried to shake up an ailing property market with a raft of decisions - they did all of this in the last week. On Monday, Xi himself spoke of "potential dangers" and being "well-prepared" to overcome grave challenges, which many believe was a reference to the economy. What is less clear is how the slowdown has affected ordinary Chinese people, whose expectations and frustrations are often heavily censored. But two new pieces of research offer some insight. The first, a survey of Chinese attitudes towards the economy, found that people were growing pessimistic and disillusioned about t...
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30Sep By Online DeskNo Comments
China, Market

China Investor Forum: The Prospects for the World Economy

Inflation in the US is moderating, and we expect the current disinflation trend to continue While the ECB has cut rates, Japan’s population decline is becoming a key source of inflation and making the BOJ hawkish Despite slower growth in China, economic growth in Asia has held up, thanks partly to the recovery in tech exports 2024 has been and will be an interesting year for economic analysis and macroeconomic investment. In the US and Europe, central banks have already eased monetary policy. After many years of deflation and low inflation, Japan is on its way to normalizing monetary policy. In emerging markets, China is still managing its housing crisis, and India has been on the ascendency. At our recent China Investor Forum in Shenzhen, our economists discussed their medi...
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Xi Jinping unintentionally hit the wrong target with his massive money cannon.
30Sep By Online DeskNo Comments
China, Market

Xi Jinping unintentionally hit the wrong target with his massive money cannon.

Sure, Wall Street. Go ahead. Ride the dragon. There was a moment of grace on Tuesday for investors, market analysts, and finance's top brass when Beijing announced measures to try to reinvigorate China's croaking economy. Pan Gongsheng, a governor of the People's Bank of China, the country's central bank, announced that 800 billion yuan, or about $114 billion, would be injected into the stock market. Policymakers also said they were discussing raising a fund designed to stabilize stocks and announced rules allowing Chinese banks to keep less money in reserve, freeing up 1 trillion yuan to go out asloans. They also lowered the People's Bank of China's medium-term lending rate and key interest rates for banks and customers. Homebuyers can also now put less money down on their p...
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China orders banks to begin lowering the interest rates on current mortgages.
30Sep By Online DeskNo Comments
Asia, China, Market

China orders banks to begin lowering the interest rates on current mortgages.

China's central bank has issued a directive for financial institutions to begin reducing interest rates on existing mortgages, marking a pivotal step in the country’s efforts to support its struggling economy. This announcement comes as part of broader measures aimed at stimulating growth amid ongoing economic challenges as detailed in a report by Reuters. The report further stated that, the decision to cut mortgage rates is expected to provide much-needed relief to millions of Chinese homeowners who have been grappling with rising living costs and a sluggish property market. The central bank's instruction is particularly timely, given that many families are facing financial strain due to the economic downturn worsened by the COVID-19 pandemic and subsequent lockdowns. According to ...
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China has been shooting repeated missile tests, according to Taiwan’s defense ministry.
30Sep By Online DeskNo Comments
China, Market

China has been shooting repeated missile tests, according to Taiwan’s defense ministry.

Taiwan's Defence Ministry said Sunday it detected multiple waves of missile firings within China, days after Beijing said it successfully fired an intercontinental ballistic missile into the Pacific Ocean. The ministry said in a statement that the missile firings were carried out by China's Rocket Force and the Chinese military in Inner Mongolia as well as Gansu and Qinghai provinces and the Xinjiang region in western China. Taiwan said it would continuously monitor developments and that its air defences would maintain a high level of vigilance and alert. China views the self-ruled island of Taiwan as a renegade province that must come under its control, by force if necessary. Taiwan closely monitors China's military activity, and China has in recent years ramped up drills around...
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Does Ireland gain or lose from Chinese investment?
30Sep By Online DeskNo Comments
China, Market

Does Ireland gain or lose from Chinese investment?

The Irish economy has been increasingly attracting Chinese investment, but does it come with a reputational cost? In 2020, 25 Chinese companies had operations in the Republic of Ireland. By this year the number had jumped to 40. For some this new flood of yuan into the country offers Ireland an opportunity to reduce its reliance on being the European base for US tech giants such as Apple and Alphabet. And it creates additional jobs. But for an increasing number of critics, Ireland being home to Chinese firms links the country to the human rights abuse allegations levelled against some such companies. These include Chinese clothing firm Shein, which since May 2023 has had its European headquarters in Dublin. Shein has long been attacked for how the workers who makes its cl...
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