China

<strong>MERICS report claims Chinese investments in Europe in 2023 fell to the lowest in 13 years</strong> 
12Jun By Joe RodriguezNo Comments
Asia, China

MERICS report claims Chinese investments in Europe in 2023 fell to the lowest in 13 years 

Chinese investment in Europe last year dropped to the lowest in 13 years since 2010, according to an annual report published on June 6 jointly by independent research provider Rhodium Group and German think tank e Mercator Institute for China Studies (MERICS). As per the report, Chinese direct investment (FDI) in Europe (defined here as the EU-27+UK) slipped again to EUR 6.8 billion last year (2023), from EUR 7.1 billion in 2022, and it was the lowest level since 2010. The report shows that Chinese corporate investors faced challenges and uncertainties last year from a mix of political and economic factors in Europe and globally, while uncertainty about the global economy impacted the investment environment for Chinese firms, amid rising geopolitical tensions that inc...
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<strong>Business closures surge as Foreign Capital flees China</strong>
6Jun By Michael SmithNo Comments
Asia, China, Market

Business closures surge as Foreign Capital flees China

China is currently facing a significant economic challenge. Foreign capital, once a major driver of the country’s growth, is rapidly withdrawing. This shift is triggering a domino effect, leading to widespread business closures. Furthermore, salary cuts across various sectors are becoming increasingly common, adding to the mounting economic pressure.Foreign capital is withdrawing and a wave of business closures is sweeping across the country accompanied by a further spread of salary cuts and wager arrears within the system throughout China. By late May public servants in various parts of the Mainland told new Tang Dynasty television that waves of layoffs, salary cuts or job losses have become common place in State owned Enterprises leaving many without a guaranteed livelihood. Miss Xiao, ...
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Foreign ministers from China and Saudi Arabia debate the Ukraine problem.
31May By TheGreenZoneNo Comments
China

Foreign ministers from China and Saudi Arabia debate the Ukraine problem.

BEIJING - China's Foreign Minister Wang Yi met with Saudi Foreign Minister Prince Faisal bin Farhan Al Saud where the two exchanged views on various subjects including the Ukraine crisis, the Chinese foreign ministry said on Friday. The two agreed that holding a Ukraine peace conference should have equal participation of all parties, and fair discussion of various proposals. Reuters reported China will not attend a Ukraine peace conference to be hosted by Switzerland next month. "China will continue to promote peace talks and play a constructive role in promoting a political settlement of the Ukraine crisis," Wang said, according to a statement. (Reporting by Beijing newsroom; Writing by Bernard Or; Editing by Christopher Cushing)
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May Manufacturing Declines in China as Property Crisis Worries
31May By TheGreenZoneNo Comments
China

May Manufacturing Declines in China as Property Crisis Worries

Factory activity in China suffered an unexpected fall in May, as the country’s long-running property crisis continues to undermine business and consumer outlook. Data from the National Bureau of Statistics on Friday showed that the official manufacturing purchasing managers’ index (PMI) dropped to 49.5 in May from 50.4 in April. The disappointing number, below the 50-mark separating growth from contraction, was well under analysts’ forecast of 50.4. It adds to a series of recent indicators showing the $18.6 trillion economy is struggling to get back on its feet, eroding optimism seen after better-than-expected output and trade data. ALSO SEE: After Chips, China to Pour Millions Into Solid-State Batteries “I think the data particularly reflects soft domestic demand, the housing...
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<strong>A new wave of “shared economy” emerges out of the Chinese economic blues</strong>
31May By Joe RodriguezNo Comments
China

A new wave of “shared economy” emerges out of the Chinese economic blues

In the face of China's escalating economic crisis, its citizens are innovating to survive. Businesses are adapting, and communal living spaces are emerging as a response to soaring rent costs. Despite the Chinese Communist Party's attempts to stimulate the economy, the impact has been negligible. The advent of the "new sharing economy" has seen the rise of shared storefronts, employees, and even beds, as a means to mitigate costs. The disparity between the official narrative and the lived reality is stark, revealing a nation grappling with economic turmoil, caught between its aspirations and the harsh economic realities. In the first quarter of 2024 China's official GDP data showed a growth of 5.3% but this figure starkly contrasts with the sentiments of the people. Despite the Chinese...
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China is preparing for an agreement with Europe amid impending EV tariffs
29May By TheGreenZoneNo Comments
China

China is preparing for an agreement with Europe amid impending EV tariffs

BEIJING/BRUSSELS, May 29 (Reuters) - The European Commission's expected move to hike tariffs on Chinese electric vehicles is set to kick off a round of talks that Chinese executives hope will soften the blow for the world's biggest EV industry. The provisional tariffs, expected to be announced by June 5, will be a sticker shock representing billions of dollars in new costs for Chinese electric car makers. But both Europe and China have reasons for wanting to strike a deal. China’s EV industry needs profitable exports to the world's third-largest economy to counter falling margins at home, while German automakers want access to China's auto market and EV partnerships to drive costs down. Every additional 10% in European Union tariffs on top of the existing 10% levy would cost C...
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China is resisting the dollar’s hegemony.
29May By TheGreenZoneNo Comments
China

China is resisting the dollar’s hegemony.

Financial security has become an indispensable part of China’s national security discourse since the 1997 Asian financial crisis. Rising geopolitical tensions with the US since 2018 and the West’s financial sanctions against Russia have further incentivised Chinese policy-makers to fortify the economy by diluting the dollar’s centrality and developing an alternative system. To this end, the Chinese government has pursued three primary strategies. First, China has supported and promoted regional and multilateral currency and financial co-operation through regional or non-western partnerships. In 2000, it supported the launch of the Chiang Mai Initiative in the aftermath of the Asian financial crisis and the Bank for International Settlements’ Renminbi Regional Liquidity Arrangement in 2...
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Is there already a trade war between China and the EU?
28May By TheGreenZoneNo Comments
China

Is there already a trade war between China and the EU?

BRUSSELS — What do vanilla, steel pipes and electric cars have in common? You guessed it: The European Union is investigating imports of these goods from China to find out whether they are being sold below cost or are being unfairly subsidized by Beijing. China, in return, suspects Europe of dumping premium cognacs on its market — and is dropping heavy hints that European luxury cars and pork meat could soon face restrictions. The tit-for-tat dynamics suggest that the EU — which last year ran a bilateral trade deficit in goods of nearly €300 billion and now wants to narrow that gap — may soon slide into a trade war with China. But are they in one already? We’ll find out soon enough. Here’s POLITICO’s take on how this could play out: Why is everyone talking about Chinese car...
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China is attempting to resolve its “epic” real estate dispute. The task is only getting started.
21May By TheGreenZoneNo Comments
China

China is attempting to resolve its “epic” real estate dispute. The task is only getting started.

Beijing has launched its most ambitious plan yet to rescue its property market, a development that investors have eagerly anticipated for months. But it’s far from certain that the measures will work. The package is centered around Beijing’s adoption of a policy that has already been tested in a major city — asking local governments to buy unsold homes from developers and convert them into social affordable housing. It also features a reduction in mortgage interest rates and downpayment ratios, and more importantly, 300 billion yuan ($41.5 billion) in cheap central bank cash to fund state purchases of unsold properties. The announcement last week swiftly followed an April meeting of the Politburo, China’s top ruling body, indicating that stabilizing the property sector has become a ...
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<strong>Sales dip but Chinese EV producers continue price war in Thailand</strong>
8May By Joe RodriguezNo Comments
Asia, China, Market

Sales dip but Chinese EV producers continue price war in Thailand

In the face of stiff competition and declining sales in Thailand's Electric Vehicle (EV) market, Chinese automakers are battling to carve out a niche for themselves. This spring, a host of Chinese automakers showcased their EVs at an international auto show in Bangkok, Thailand, in an attempt to attract Thai customers. Among the participants were notable companies such as Changan Automobile, BYD, Great Wall Motor Company Ltd., Dong Feng Motor Corporation, Shanghai Automotive Industry Corporation, Nio, Xpeng, Leap motor, Hozon, Geely, JAC, and others. Despite the aggressive pricing strategies employed by these Chinese automakers, their vehicles have yet to gain significant traction among Thai consumers. The sales of EVs in the Thai market continue to be sluggish, casting a shadow over the ...
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