World

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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10Oct mmBy Walter ParezNo Comments
Asia, Market, World

According to the World Bank, implementing reforms is still essential for sustained economic recovery and poverty reduction.

Pakistan’s economy has continued to stabilize from the recent economic crisis, with growth recovering to 2.5 percent in the fiscal year ending June 2024, says the World Bank in its latest country economic update. Released today, the Pakistan Development Update: The Dynamics of Power Sector Distribution Reform, finds that following recession in FY23, economic activity strengthened in FY24 reflecting strong agricultural output, lower inflation, prudent macroeconomic measures, and reduced political uncertainty. But this level of growth is not sufficient to bring down poverty rates, which increased from 40.2 percent in FY23 to 40.5 percent in FY24. “Pakistan’s stabilizing economy is on a path of recovery. To sustain and strengthen that positive momentum, steady implementa...
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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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10Oct mmBy Michael SmithNo Comments
Market, USA, World

The Need for Reform and Presidential Tariff Powers

Article I, Section 8 of the US Constitution grants Congress the power to “lay and collect Taxes, Duties, Imposts and Excises,” and to regulate commerce with foreign countries. From the founding of the republic through the early 1930s, Congress set tariff rates through legislative revisions to the US tariff schedule. Low tariffs were initially imposed to raise revenue for the federal government, but tariffs became a tool to protect domestic producers from foreign competition. Throughout this period, tariff rates fluctuated with the makeup of Congress, while the president was largely a bit player in setting international trade policy. This approach to US tariffs changed dramatically following the disastrous Trade Act of 1930, better known as the Smoot-Hawley Tariff Act after its sponsors...
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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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What do Chinese people think of Xi Jinping’s concerns about the economy?
1Oct mmBy Walter ParezNo Comments
Asia, China, Market, World

What do Chinese people think of Xi Jinping’s concerns about the economy?

China’s sputtering economy has its worried leaders pulling out all the stops. They have unveiled stimulus measures, offered rare cash handouts, held a surprise meeting to kickstart growth and tried to shake up an ailing property market with a raft of decisions - they did all of this in the last week. On Monday, Xi himself spoke of "potential dangers" and being "well-prepared" to overcome grave challenges, which many believe was a reference to the economy. What is less clear is how the slowdown has affected ordinary Chinese people, whose expectations and frustrations are often heavily censored. But two new pieces of research offer some insight. The first, a survey of Chinese attitudes towards the economy, found that people were growing pessimistic and disillusioned about t...
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Wall St ends higher on positive US economic data
28Sep By Online DeskNo Comments
Market, USA, World

Wall St ends higher on positive US economic data

A string of robust U.S. economic data eased concerns that the Federal Reserve may be cutting rates aggressively to curb any slowdown. Weekly jobless claims fell more than anticipated, signaling a steady labor market, while the final reading of gross domestic product confirmed that the economy grew 3% in the second quarter. "It (the GDP number) just kind of reinforces that strong economic growth backdrop that we have been seeing," said Mike Dickson, head of research at Horizon Investments in Charlotte, North Carolina. The benchmark S&P 500 (.SPX), opens new tab closed up 23.11 points, or 0.40%, at 5,745.37, after rising to a record intraday high of 5,767.37. The blue-chip Dow Jones Industrial Average (.DJI), opens new tab rose 260.36 point...
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As per the government’s official estimate, the US economy grew at a pace of 3% last quarter.
27Sep By Online DeskNo Comments
Market, USA, World

As per the government’s official estimate, the US economy grew at a pace of 3% last quarter.

The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said Thursday, leaving its previous estimate unchanged. The Commerce Department reported that the nation's gross domestic product the nation's total output of goods and services growth picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year. Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate that the government had previously estimated. Business investment was also solid: It increased at a vigorous 8.3% annual pace last quarter, led by a 9.8% rise in investment in equipment. The U.S. economy, the world...
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Bargaining chips: Taiwan’s implications of the Vance Doctrine
26Sep By Online DeskNo Comments
Market, USA, World

Bargaining chips: Taiwan’s implications of the Vance Doctrine

Donald Trump’s selection of JD Vance as his 2024 running mate has disquieted America’s security partners in Europe and Asia. If America’s 45th president returns as its 47th and a Vice President Vance holds sway, the implications for Europe are clear. Vance argues that President Joe Biden’s arming of the Ukrainians has passed the point of diminishing returns and that it distracts from America’s challenge of greatest import: China’s rise. But while Vance has called for a focus on Asia, what exactly a Vance-inflected foreign policy would mean for the region is not obvious. Vance’s well-documented body of thought on American society, governance, and strategy offers some clues, however, on how he would approach China, Taiwan, and related questions. The theme that ru...
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