China

China’s stimulus plan targets its largest debt wall.
14Oct mmBy Joe RodriguezNo Comments
Asia, China

China’s stimulus plan targets its largest debt wall.

Chinese policymakers trying to fire up growth in the world’s second-largest economy appear intent on smashing through a wall of debt, opens new tab that poses a systemic financial risk and on not repeating past mistakes in delivering fiscal stimulus. That is some consolation for the fact that Beijing, so far, has mapped out only half of a plan. At a highly anticipated press conference on Saturday, the Ministry of Finance signaled it is ready to significantly boost spending but it declined to say by how much. The lack of a concrete number will disappoint those looking for quick fixes; Chinese benchmark stock indices including the Hang Seng (.HSI), opens new tab opened largely unmoved on Monday. To spur consumption, economists reckon the People’s Republic may need to spend up to 10 trill...
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13Oct mmBy Brian ThompsonNo Comments
Asia, China, Market, World

India starts to reconcile its economic ambitions with security fears about China.

Indian Prime Minister Narendra Modi's government tightened scrutiny of foreign direct investment amid security concerns during the COVID-19 pandemic, largely curtailing China's economic influence. But as India aspires to become the world's third-largest economy by 2029 and a developed nation by 2047, it must grapple with balancing economic ambitions with security concerns and is beginning to cautiously accept Chinese investments in sectors such as electronics manufacturing to boost local production capabilities. Since first assuming office in 2014, Prime Minister Narendra Modi’s government has aimed to increase the share of manufacturing in India’s GDP. In 2014, the government launched the Make-in-India campaign, which pushed for more manufacturing and invited foreign direct ...
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China’s most recent threat, large ships, awakens the US
12Oct mmBy Joe RodriguezNo Comments
China, World

China’s most recent threat, large ships, awakens the US

In a belated recognition that China has cornered the construction of ocean-going commercial vessels, those ships crucial to secure sea-borne supply chains, the United States is this year turning to its Asian allies to help it catch up in a hurry and thwart another geopolitical threat. In June, South Korean shipbuilder Hanwha Ocean bought the loss-making Philly Shipyard in Philadelphia for US$100 million, a deal approved by Washington in September. This may not sound like much, but it allows a foreign shipbuilder into an industry that has been highly protected to its considerable detriment. Under America’s century-old Jones Act, vessels transporting goods between US ports must be built, owned and crewed by Americans. China’s 13 shipyards (and growing) has more capacity...
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Economists urge stronger action from China to combat deflation.
12Oct mmBy Walter ParezNo Comments
China, Market

Economists urge stronger action from China to combat deflation.

China moved to further ramp up support for the economy, promising more aid for the slumping property sector and indebted local governments. But officials still haven’t convinced economists that they’re doing enough to defeat deflation. At a highly anticipated briefing on Saturday, Finance Minister Lan Fo’an refrained from putting a price tag on China’s fiscal stimulus as investors expected, signaling that details would come when China’s legislature meets in the coming weeks. The supportive measures he did announce, however, gave little indication Chinese authorities felt any urgency to ramp up consumption, which many economists see as essential to reflating the economy and putting it on a more positive growth trajectory. “The policy to support consumption sounds quite...
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<strong>China is spying through its cars</strong>
11Oct mmBy Joe RodriguezNo Comments
China

China is spying through its cars

There are increasing worries that China could be leveraging its high-tech electric vehicles for espionage. These cars, packed with advanced sensors and internet connectivity, have the capability to gather extensive data, such as personal and biometric information, along with location details. The fear is that the Chinese government might misuse this data, sparking serious concerns about national security and privacy. As these vehicles become more widespread, the discussion around their safety grows more urgent. Recent reports indicate that a popular electric vehicle brand in Australia may have a hidden backdoor, allowing the manufacturer to eavesdrop on conversations. This revelation comes on the heels of a month filled with alarming technological warfare incidents, underscoring th...
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10Oct mmBy Joe RodriguezNo Comments
Asia, China, Market, World

China’s economy is predicted by the World Bank to slow down in 2025.

According to World Bank estimates, China’s GDP growth rate next year will decrease to 4.3% compared to the projected 4.8% in 2024. This is stated in the institution’s new economic forecast for the Asian region. China’s economic slowdown in 2025 is expected amid continued weakness in the real estate market, low consumer and investor confidence, as well as structural challenges such as an ageing population and global tensions, it said. Expectations for 2024 rose by 0.3% compared to the bank’s April forecast. As CNBC notes, this reflects Beijing’s recent introduction of a series of stimulus measures that boosted investor confidence and sparked a stock market rally that has since stalled. Economies in the rest of East Asia and the Pacific region will grow from 4.7% in ...
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8Oct mmBy Michael SmithNo Comments
Asia, China, Market

When stimulus news is disappointing, the China stock surge stalls.

A stock market rally in China has fizzled out as a highly-anticipated announcement on plans to boost the country's ailing economy disappointed investors. Shares had jumped by over 10% as trading restarted after the Golden Week holiday but fell back after a news conference by the country's economic planners. After a volatile day of trading, the Shanghai Composite Index in mainland China closed 4.6% higher, while the Hang Seng in Hong Kong slumped by 9.4%. Investors had been hoping for more information about how the government plans to support economic growth but the announcement gave little in the way of details. The chairman of China's National Development and Reform Commission Zheng Shanjie said he is "fully confident" the country will achieve its full-year economic and socia...
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<strong><br>US lawmakers urge President Joe Biden to bring home Americans wrongfully detained in China</strong>
8Oct mmBy Joe RodriguezNo Comments
China, USA


US lawmakers urge President Joe Biden to bring home Americans wrongfully detained in China

In recent years, the troubling trend of wrongful detentions of US citizens abroad has drawn significant attention from human rights organizations and government officials.  Of particular concern is the rise in cases of Americans wrongfully detained in China, which now surpasses that of any other country.  The increasing number of US citizens held under dubious circumstances by Chinese authorities has heightened tensions between Washington and Beijing, creating a serious diplomatic challenge.This disturbing trend not only highlights the risks faced by Americans in China but also reflects the broader geopolitical complexities between the two bickering global powers.  As China's government tightens its grip on dissent and continues to exert control over foreign in...
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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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