China’s campaign to win investment wavers as overseas capital plays waiting game
Despite its attempts to woo back foreign investment, China has yet to see a hoped-for return of overseas capital as enterprises express hesitation to jump back into the fray.
SCMP > EconomyGlobal Impact: China posts better-than-expected first-quarter growth, but US trade actions test outlook
In this week’s issue of the Global Impact newsletter, we take the temperature of US-China relations at a difficult time for Beijing as it seeks to solidify the recovery of the world’s second-largest economy.
SCMP > EconomyHow nationalism threatens a repeat of Covid-19 tragedies in next pandemic
An initially strong draft WHO treaty focusing on rapid information sharing, fair vaccine distribution and relaxing intellectual property rights appears to have been diluted. Failure to forge an agreement and put aside national differences would be a tragedy for which we will pay a terrible price, perhaps very soon.
SCMP > EconomyChina’s king-of-the-hill status shaky as offshore exploration diversifies rare earth supply chain
With more countries searching for – and finding – stores of rare earth minerals, China’s former near-monopolist role in the trade of the metals is gradually being eroded.
SCMP > EconomyEisenhower was right, every missile fired is a theft from those in need
With so many nations struggling to provide electricity and clean water, and to rebuild healthcare and education, it’s a travesty that billions of dollars are being diverted to arms production and defence.
SCMP > EconomyWorld doesn’t need industrial policy like Biden’s, not that the US cares
Well-designed policies that support innovation and technology diffusion more broadly can lead to higher economic growth across countries. Policies that limit rivals’ access to technology are hardly best for the world.
SCMP > EconomyFormer China central bank official warns against miscategorising ‘virtual economy’
China must emphasise modern services in its push for new productive forces, Sheng Songcheng says, flagging the need for a hi-tech, high-quality service sector.
SCMP > EconomyChina penalises US acid imports in retaliatory move as trade relations grow caustic
China has revealed hefty penalties on imports from the US of an acid used as a preservative as trade relations between the two countries appear likely to return to an outwardly acrimonious track.
SCMP > EconomyChina-Middle East commercial ties enjoying a ‘renaissance’ as politics, trade spats strengthen shift from West, consultancy says
Commercial ties between China and the Middle East are enjoying a revival as politics, energy transition and supply-chain upheavals create opportunities for Chinese exporters, according to management consultancy Oliver Wyman.
SCMP > EconomyIMF: China’s bonds, stimulus will buoy world’s No 2 economy despite property crisis
Asia official with Washington-based agency points to the PBOC’s policy moves, as well as China’s infrastructure spending, as economic bellwethers in the face of headwinds.
SCMP > EconomyChina steels itself for new front in trade war after US proposes tariffs on metals
The US’ proposed tripling of tariffs on Chinese steel imports would be the first move in a tit-for-tat struggle that would expand the bilateral trade war, analysts said – and fuel grumblings over industrial overcapacity.
SCMP > EconomyCanton Fair: Chinese Premier Li Qiang solicits views from ‘ambassadors of friendship’ as external tensions grow
Premier Li Qiang told overseas buyers at the Canton Fair that China’s development will inject more stability into the world economy and global trade as it seeks to shore up confidence and retain and entice investors.
SCMP > EconomyWith Mideast on brink, investors ignore geopolitical risks at their peril
If investors are indeed concerned about geopolitics, their fears are not reflected in the market as equity investments remain at all-time highs. Escalation between Iran and Israel would disadvantage emerging market currencies, fan inflation and widen the gap between asset prices and the real economy.
SCMP > EconomyChina unloads more US Treasury bills as odds of Fed rate cuts grow slim
China has continued to sell its holdings in US debt as the likelihood of expected interest rate cuts grows more remote and Beijing looks to widen the diversity of its foreign asset pool.
SCMP > EconomySinking fortunes: Hong Kong falls out of world’s top 10 busiest ports ranking for the first time as volumes slump
Hong Kong, once the world’s busiest port, was knocked to 11th place in 2023 by Dubai’s Jebel Ali port, while Shanghai and Singapore retained the top two spots, according to data from Alphaliner.
SCMP > EconomyCanton Fair: China’s new energy exporters abuzz as orders swell, threat of trade curbs looms
Buyers and exhibitors of new energy equipment at the Canton Fair are showing boundless optimism as orders rise, but measures likely to be taken against the industry by the US and EU could spoil the fun.
SCMP > EconomyChinese EV makers Dongfeng Motor and Chery Automobile eye factories in Europe as competition escalates at home
Carmakers like Dongfeng, Chery and BYD are eyeing production sites in Europe to assemble the next generation of electric vehicles as a foil against the EU’s protectionist tariffs as a brutal price war at home drives more producers offshore in search of fresh markets.
SCMP > EconomyChina rallies aviation brainpower to get widebody C929 off the ground, amp up Airbus and Boeing competition
China’s state-owned aircraft manufacturer held a conference ahead of a week-long seminar to seek progress with its C929 passenger jet, which is due to rival the Airbus A350 and Boeing 787 models for long-haul routes.
SCMP > EconomyIn China, Germany’s Olaf Scholz calls for ‘open and fair’ competition as differences weigh on trade
Scholz’s trip comes as the European Union is undertaking an anti-subsidy investigation into Chinese electric vehicles (EVs), and as criticism grows in the United States about Chinese overcapacity.
SCMP > EconomyGlobal Impact: Chinese-owned social media platform TikTok is facing a ban in the US as China hits back at ‘never-ending cycle’
In this week’s issue of the Global Impact newsletter, we look to keep up with the complex and ever-evolving US-China relationship, with a particular focus on Washington’s moves to ban video-sharing app TikTok.
SCMP > EconomyHong Kong gearing up to become a hub for ILS such as catastrophe bonds, Insurance Authority says
Hong Kong is building an arsenal to assist the world with raising funds for managing losses from natural disasters, the Insurance Authority said. It is discovering more issuers, investors and data, as well as cultivating its modelling capabilities and talent.
SCMP > EconomyAs private credit warnings grow, the fear is that the horse has bolted
The IMF is warning regulators about the systemic risks of the rapidly growing private credit market, a largely opaque sector involving direct lending to corporations
SCMP > EconomyAs supply chains shift away from China, others get their own economic miracles
As global supply chains are reshaped, countries such as Vietnam and Mexico are becoming attractive manufacturing hubs. Chinese-backed factories in the US might face resistance, but the job growth and knowledge transfer they bring will benefit the American economy.
SCMP > EconomySpotlight, BMW’s China venture, to assemble EVs including Mini cars for consumers worldwide
Spotlight Automotive, BMW’s 50-50 EV venture with mainland Chinese partner Great Wall Motor, is designing new models that it hopes to sell globally.
SCMP > EconomyChina overtakes Germany in some exports, raising trade profile and EU eyebrows ahead of Scholz visit
A recent report has found China has overtaken Germany in terms of certain exports, an elevation of status for the Asian juggernaut but a potential source of tension for already fraught bilateral relations.
SCMP > EconomyChina trade: exports tumble in March, but ‘robust growth’ on the horizon as overseas demand recovers
China’s exports in March were dragged down by a higher base in the same period last year, but a strong recovery in demand in overseas markets is set to lead to ‘robust export growth’ this year, analysts said.
SCMP > EconomyBeware what you wish for: calls for China to loosen grip on the yuan may rock emerging and developed markets alike, strategists say
China’s managed currency is seen as an anchor for its regional peers, meaning small moves can have an outsize impact.
SCMP > EconomyChinese Premier Li Qiang set to visit Australia in June, live lobster import ban expected to be lifted
Chinese Premier Li Qiang is scheduled to visit Australia in the third week of June amid improving relations, with the unofficial import ban on Australian live lobsters set to be lifted, according to sources with knowledge of the issue.
SCMP > EconomyEU investigation into Chinese wind turbine exporters could lead to higher costs, slow down clean energy projects in bloc, analysts say
An anti-subsidies investigation into Chinese wind turbine manufacturers by the EU could saddle the bloc’s renewable project developers with high costs and slow down their decarbonisation efforts, analysts say. The impact on Chinese firms could be limited.
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