Market

<strong>Business closures surge as Foreign Capital flees China</strong>
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, ...
<strong>Sales dip but Chinese EV producers continue price war in Thailand</strong>
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 ...
Bypassing Barriers: China’s clever use of Mexico to penetrate U.S. markets
Asia, Market, USA, World

Bypassing Barriers: China’s clever use of Mexico to penetrate U.S. markets

China operates with a singular objective: to maximize profits, employing any means necessary. Recently, we have witnessed escalating tensions between the United States and China over trade relations. This conflict has significantly impacted the American market, prompting the U.S. government to impose substantial tariffs on Chinese goods imported into the country. However, China has ingeniously devised a strategy to circumvent these hefty tariffs while simultaneously reducing shipment costs. Chinese companies utilize Mexico as a back door to enter the US amid the ongoing trade war with the US. Many Chinese firms have moved to industrial parks in northern Mexico over the past few years to get closer to the American Market. Market Manoa Furniture in Monterrey producing recliners and plush...
<strong>China struggles to save its international Rare Earth Market</strong>
China, Market

China struggles to save its international Rare Earth Market

At the time when China is bedevilled by shifting away of supply chains from its shores and imposition of high import tariffs and blacklisting of its companies by US and Western countries, the world’s second-largest economy is staring at a significant drop in its status as the top international exporter of the rare earth materials. Data from China’s General Administration of Customs shows that the country’s exports of the 17 minerals classified as rare earths fell 18.2% in December 2023 from the previous month, to 3,439 tons. In 2022, it exported 48,728 metric tonnes of rare earths, down 0.4% year-on-year. The US Geological Survey report also suggests that China’s share of total rare earth exports dropped from about 90% a decade ago to roughly 70% in 2022. The Chinese Society of Rare...
<strong>Dumping and security threat makes Europe, US wary of Chinese electric vehicle</strong>
China, Market, USA

Dumping and security threat makes Europe, US wary of Chinese electric vehicle

The potential dumping of cheaper China-made electric vehicles has raised concerns among major Western countries, urging them to seek preventive measures to protect local markets as well as thwart security risks these cars pose. Several countries have voiced their opposition to permitting Chinese EVs until their concerns are resolved. Recently, the UK hinted at banning Chinese EV cars over the allegations of unfair state support. British transport secretary Mark Harper said the government will ensure that “We have fair international trade, and that we don’t have dumping or unfair subsidy. The important thing is it’s a fair, competitive landscape.”[1] European Union had last year launched an investigation and contemplated punitive action to protect domestic industry from cheaper Chine...
<strong>Elon Musk: China’s EV dominance a threat to local players</strong>
China, Market, World

Elon Musk: China’s EV dominance a threat to local players

Tesla maker Elon Musk has been critical of China’s rising authority in the EV market. He has called for global trade barriers in the EV market otherwise Chinese player BYD will demolish the local players. Musk’s comments are in response to “unimaginable” performance by Warren Buffett’s backed Chinese automaker BYD. BYD has surpassed Tesla as the world’s top-selling EV company in the last quarter. Tesla has been marred by slowing sales in the United States even after a price cut in 2023, while BYD’s cheaper EVs has propelled the Chinese automaker at the top spot. Musk while addressing a group of analysts accepted the competitive nature of Chinese carmaker BYD and predicted its success outside China, unless there are suitable trade barriers in place. He feels without any trade barrier...
<strong>China gets restricted Nvidia computer based intelligence chips through dim business sectors</strong>
China, Market

China gets restricted Nvidia computer based intelligence chips through dim business sectors

Despite US export controls, China’s military and research sectors can still get Nvidia’s advanced AI chip. Experts say the US has not stopped the illegal trade of these chips in China. Proof has amassed that, in spite of the US's commodity controls, China's military-related firms, research focuses and colleges can in any case get Nvidia's very good quality man-made brainpower (computer based intelligence) chip. Innovation specialists say the Biden administration has bombed such a long ways to prevent little wholesalers from exchanging and sneaking the chips into the Chinese black business sectors. The US Trade Division's Department of Industry and Security (BIS) restricted the commodity of the A100 and H100 chips to China in October 2022 and the product of the A800 and H800 chips to the n...
China’s economy experienced a dismal year. 2024 might be much more dire.
China, Market, World

China’s economy experienced a dismal year. 2024 might be much more dire.

The Chinese economy was expected to recover quickly in 2023 and resume its role as the undisputed engine of global growth. Instead, it stalled to the point where it’s being called a “drag” on world output by the International Monetary Fund (IMF), among others. Despite its many problems — a property crisis, weak spending and high youth unemployment — most economists think the world’s second largest economy will hit its official growth target of around 5% this year. But that is still below the 6%-plus annual growth averaged in the decade before the Covid pandemic, and 2024 is increasingly looking ominous, they said. The country may be staring at decades of stagnation thereafter. “The 2024 challenge for the Chinese economy will not be GDP growth — that will likely be above 4.5%,” sa...
China’s Real Estate Crisis: A Precarious Balancing Act Threatens Economic Stability
Asia, China, Market

China’s Real Estate Crisis: A Precarious Balancing Act Threatens Economic Stability

China's real estate sector is facing a severe crisis, prompting the government to encourage financial institutions to support struggling developers burdened by massive debt. The dilemma for Beijing lies in defusing local government debt risks while propping up the real economy to sustain growth. This critical situation highlights the intricate dance between economic stability and social harmony, as the housing issue is closely tied to both. The government's recent call for support underscores the gravity of the situation, especially with major developers like China Evergrande on the verge of collapse. The future looks bleak for China’s real estate sector. Even government support may not be enough to ameliorate this crisis. 2.         China's prop...
CSRC Trying To Revitalise China’s Stock Market
China, Market

CSRC Trying To Revitalise China’s Stock Market

The China Securities Regulatory Commission (CSRC) has introduced a series of measures on August 18 aimed at revitalizing China's stock market, in response to escalating global concerns about the sluggish Chinese economy and its far- reaching consequences. The reform strategies put forth by the CSRC encompass several pivotal actions, including the reduction of handling fees for securities transactions and concurrent lowering of commission rates for securities firms. Moreover, they involve expanding the domain of margin financing and securities lending, refining the mechanism for shareholding reduction, enhancing transaction surveillance for smoother processes, and investigating the potential for extended trading hours in both the A-share market and the exchange bond market. Additi...