World

The U.S. Treasury Department and People’s Bank of China (PBOC) have unveiled plans to form a special contact group to manage potential financial stress events. This resolution follows the fifth round of talks in the Financial Working Group, aiming to encourage mutual financial resilience amid increasing interdependence of the two economies. The new contact group’s mission is to handle potential fiscal crises, playing an integral role in decreasing global financial instability. This plan heralds a significant move in U.S.-China economic cooperation. Following U.S. Treasury Secretary Janet Yellen’s visit to China, the two nations compiled a catalog of critical contacts focused on preserving financial stability. This effort aims to enhance coordination in financial crises times and bet...

The statement by China’s top steelmaking firm, which accounts for 7 percent of global output, that the industry faces a severe crisis, underscores the extent of the slowdown in the Chinese economy and its global significance. Outlining the company’s half-year position on Wednesday, Hu Vangming, chair of China Baowu Steel Group, said the “winter” would be “longer, colder and more difficult than we expected.” In comments to Bloomberg, he said in the process of resolving it, cash was more important than profit and “financial departments at all levels should pay more attention to the security of the company’s funding.” His remarks were echoed by Hou Augui, the general manager at the state-owned firm, who said “the current situation in the steel industry is more severe that the downtu...

China’s steel industry is facing a crisis more serious than the recessions of 2008 and 2015. The world’s largest steelmaker, China Baowu Steel Group, warned of this, Bloomberg reports. The crisis is likely to be longer and more severe than the steel sector expected, said Hu Wangming, chairman of Baowu Steel Group, at the company’s semi-annual meeting. The group produces about 7% of the world’s steel, and this message from it is likely to cause concern among competitors in Asia, Europe and North America who are trying to cope with the new wave of Chinese exports. Baowu Steel will focus on minimizing risks. The company recommends that financial departments at all levels pay more attention to the security of financing and strengthening control, including overdue payments and the d...