China

In April, China implemented export restrictions on seven rare earth elements and finished magnets, requiring exporters to obtain licenses. However, requests for imports are still awaiting approval from Chinese authorities, and shipments have yet to arrive. A delegation of auto industry representatives is preparing for a visit to China, aiming to speed up the import of rare earth magnets for Indian companies, according to industry sources. Roughly 40 to 50 executives have received visa approvals but are still waiting for the green light from the Chinese commerce ministry to hold discussions on the matter. The domestic auto industry is compelled to take action as the Chinese government imposed restrictions on the export of rare earth elements and related magnets starting April 4. Chi...

China’s electric vehicle (EV) sector is experiencing a price war that is affecting share prices and prompting government intervention. Analysts attribute these challenges to weaker demand and overcapacity, which may reduce profits and drive some companies out of the market. BYD, the market leader, has lost US$21.5 billion in market value since May 2024 due to aggressive pricing strategies. The average production capacity use rate in the industry was 49.5% in 2024, according to Gasgoo Automotive Research Institute. Overcapacity remains a major concern, leading some automakers to reduce operations or seek additional funding. 1️⃣ China’s EV industry is transitioning from subsidy-driven growth to market-driven consolidation The current price war represents a predictable ...

Vulnerable countries to pay record $22bn this year, mostly relating to loans issued under Xi Jinping’s belt and road initiative The most vulnerable nations on Earth are facing a “tidal wave” of debt repayments as a Chinese lending boom starts to be called in, a new report has warned. The analysis, published on Tuesday by Australian foreign policy thinktank the Lowy Institute, said that in 2025 the poorest 75 countries were on the hook for record high debt repayments US$22bn to China. The 75 nations’ debt formed the bulk of the total $35bn calculated by Lowy for 2025. “Now, and for the rest of this decade, China will be more debt collector than banker to the developing world,” the report said. The pressure to repay was putting strain on local funding for health and educatio...

A great wall of debt may not be an obstacle to Xi Jinping’s effort to boost spending in the world’s second-largest economy. By some measures, China’s president has already dug deep to prop up slowing GDP growth. Now officials are taking a broader view of the country’s balance sheet. This may open up a new fiscal chapter for the People’s Republic.Despite a de-escalation this month of a global trade war, China still faces additional 30% tariffs on its exports to the United States. A property crisis, deflationary pressure and unemployment fears mean savers are hoarding money instead of spending it. Yet there is limited space to unleash further stimulus according to orthodox rules. In the past, the State Council rarely budgeted a deficit larger than 3% of GDP, a threshold similar to th...

China’s economy has suffered from slow consumer spending and a slump in the real estate market. The unpredictable trade war with the United States risks further economic problems, but the current pause in tariff increases plus persistent stimulus from Beijing are keeping the worst outcomes at bay.Following the April meeting of China’s politburo (the executive committee of the Communist Party of China) – just a couple of weeks after the United States and China had raised tariffs on one another to considerably more than 100% – the communiqué was surprisingly sanguine. At tariff rates of 145% and 125% respectively, bilateral trade would almost certainly have collapsed in what was, in effect, more trade embargo than trade war, with damaging consequences for both sides. But with a heavy...