Economic Watch: WTO predicts strong but uneven global trade recovery after COVID-19 shock
Meanwhile, the WTO figures showed that China was the world’s top exporter last year and the second-largest importer behind the United States. “Our projections show a strong recovery in Asia for 2021 in terms of exports,” WTO’s Chief Economist Robert Koopman told a news conference. “China is a big driver in that. We also see a recovery in imports in Asia.” Asked about the trade outlook, senior WTO economist Coleman Nee told the same press conference that China has been supplying a lot of goods in 2020 for which demand held up quite well, including surgical masks and other medical supplies. “China still has its important position in products for which demand remained strong in 2020 and will remain strong as we exit this pandemic,”
WTO revises global trade forecast higher, as stimulus keeps demand intact and China dominates exports
Global merchandise trade is expected to rise by 8 per cent this year WTO officials warn that the lopsided distribution of vaccines globally presents the biggest risk to a full recovery in global trade
After Suez Canal crisis, EU’s bid to cut carbon emissions in shipping threatens Asia-Europe trade
By extending its emissions trading system to shipping, the European Commission could unfairly tax intra-Asian trade and jeopardise multilateral efforts to reduce pollution Instead, the EU should support the industry’s US$5 billion R&D fund to finance a decarbonised global fleet Both the Japanese and Singaporean governments have shown their support for the R&D fund at the International Maritime Organisation. They are lending their weight to a proposal which can uphold multilateralism and decarbonise the industry, while their stance gives a face to the opposition to the EU’s proposed solution. I expect more of our Asian member states will soon be following suit. This will send a clear message to the global community that as an industry, shipping is fiercely committed to decarbonisation, but will not step willingly into a system of taxation that undermines a trading relationship which is now more crucial than ever. If the EU wants to really achieve change, it should drop the unfair tax on trade and get behind the R&D fund proposal put forward by Japan and Singapore.
In Draft Rules, China Promises Cap for Emission-Trading Scheme
Making polluting companies pay their cleaner competitors should help lower the country’s carbon footprint.
How fast will China slow in 2021?
For some months we have been of the view that Chinese growth will begin to slow materially in second half of this year. We reckon that robust export demand will be enough growth support for China to turn back to structural reform for the domestic economy. We have already seen confirmation of this in tightening monetary and fiscal policy at the margin plus new reform undertakings.
Resilient Chinese exports lift airlines, shipping lines and ports
COVID slashed 2020 passenger numbers, but strong cargo demand helped Robust cargo shipments last year were a boon for China’s big state-owned airlines, shippers, logistics service suppliers and port operators. Chinese carriers are probably better positioned than their regional peers, given that their vast domestic market has virtually returned to normal. “With the international passenger recovery dependent on different border reopening approaches, our positive view on the Chinese airlines is driven by the domestic passenger market,” said Andrew Lee, aviation analyst at Jefferies Hong Kong. Lee on Wednesday maintained “buy” ratings for China Southern Airlines, China Eastern Airlines and Air China.
China’s manufacturing activity growth in March lowest in almost a year due to soft domestic demand
The Caixin/Markit manufacturing purchasing managers’ index (PMI) dropped to 50.6 last month – the lowest level since April 2020 – from February’s 50.9, missing analyst expectations for an uptick to 51.3 The findings contrasted with the official survey which showed manufacturing activity grew at a stronger pace as large firms ramped up production after a brief lull during the Lunar New Year holiday
To improve China’s image globally, welcome foreigners and let them be bridges to the West
China should welcome foreigners, including Western journalists, to live and work in the country and not bristle at discussion of its shortcomings International media reports that provide a detailed and diverse view of China will be better received abroad than Chinese government statements
G7 trade ministers take aim at China over ‘harmful industrial subsidies’
Beijing’s generous support for its domestic companies is a major sore spot for Western economies In a joint statement, the ministers pledged collective action to address such subsidies and other market-distorting practices
G7 pressure on China over subsidies ‘doomed to fail’ even as Biden administration gathers coalition
Trade ministers from the Group of 7 (G7) – the United States, Germany, Britain, France, Canada, Italy and Japan – on Wednesday pledged collective action against “harmful industrial subsidies” without naming China directly China responded by saying it “won’t accept any accusation” of its trade practice as it “has always honoured its commitments” since it joined the World Trade Organization (WTO) at the end of 2001
UK trade secretary Liz Truss urges WTO reform to ‘get tough on China and their behaviour’
Truss told G7 meeting that China should no longer be designated a developing nation, claiming it was ‘ludicrous that some countries can evade market disciplines’ She also suggested tightening human rights clauses in trade agreements, even though her government recently blocked MPs inserting a ‘genocide clause’ in such deals
China’s expat tax reform could see more than a third of American firms leave Shanghai, AmCham says
China is ending tax exemptions on foreign employee allowances next year, a move that has sparked concern among multinationals in Shanghai More than a third of foreign companies based in the commercial hub say they are considering relocation, American Chamber of Commerce (AmCham) in Shanghai survey shows
China’s central bank warns of a swath of financial risks, including potential defaults
China’s central bank warned Thursday of financial risks in the country that have accumulated over the years, as well as shocks from overseas uncertainties. The detailed comments mark the latest warning from high-level officials in China in the last several weeks about domestic market risks.
China’s currency set for worst month since US trade war
China’s currency is set for its worst month against the dollar in more than a year and a half, as investors fret that a clampdown on borrowing could slow the country’s swift economic recovery from Covid-19, reported the Financial Times. The tightly regulated onshore-traded renminbi fell 1.4% against the greenback in March to about RMB 6.57, marking its worst one-month drop since August 2019, when Washington labelled Beijing a currency manipulator. The recent drop also erased the Chinese currency’s gains against the dollar since the new year.
US-China tensions could drive more firms to diversify supply chains to Southeast Asia, think tank says
Southeast Asian economies stand to gain further from multinational firms looking to diversify supply chains from China, says a new report from Asean Labour-intensive assembly operations and some capital-intensive industries like cars, machinery and electronics are most likely to relocate The report echoed findings from the American Chamber of Commerce in China earlier this month. About 83 per cent of the 345 US firms surveyed said they would maintain their existing manufacturing and sourcing operations in China this year, the same level as 2020. Only 2 per cent said they were considering reshoring operations to the US.
Podcast : Radosław Sikorski on EU’s sanctions row with China and the transatlantic partnership
“The EU’s policy towards China should be based on the following principles: cooperate where possible, compete where needed, confront where necessary.” This is the vision of the European People’s Party’s (EPP) strategy paper on European relations with China released in the beginning of March. In this episode of MERICS Experts we talk to its author, Radosław Sikorski, Member of the European Parliament for the European People’s Party and chair of the European Parliament’s delegation for relations with the United States. The conversation touches on a range of strategic issues related to EU-China relations including the implications of the exchange of sanctions between the EU and China, the prospects for transatlantic cooperation on China and the logic behind the EU’s Indo-Pacific strategy that is now in the works. The interview was conducted by MERICS Analyst Grzegorz Stec
China EV market: Great Wall Motor opens door to tech partners, days after rejecting news on Xiaomi plan
Great Wall Motor does not exclude any potential partner for any EV tie-up, investor relations manager Li Hongqiang says Stock fell 19 per cent this year amid a major sell-off in Chinese technology and EV makers in Hong Kong and US bourses
China semiconductors: SMIC cements its role as Beijing’s best hope in chips despite US restrictions
The chip maker reported a record-high 27.5 billion yuan (US$4.2 billion) in revenue for 2020, representing 24.8 year-on-year growth SMIC’s more mature nodes are still in high demand for applications from cars to consumer electronics amid a chip shortage caused by the pandemic
Huawei reports sharply slower growth as US sanctions take a toll
Revenue growth for Chinese telecommunications equipment maker Huawei fell dramatically in 2020 as overseas sales shrank in the wake of US sanctions and disruptions caused by the Covid-19 pandemic, the company reported on Wednesday.
Huawei quarterly sales fall for first time
Huawei’s quarterly revenue shrank for the first time on record, reflecting the devastating impact of American sanctions that forced China’s largest technology company out of smartphones and into other technology arenas, reported Bloomberg. The disappointing results underscore the damage Washington has wrought on a company that once vied with Apple and Samsung to lead the global smartphone market, said Bloomberg. Huawei reported that revenue fell 11% to RMB 220.1 billion ($33.5 billion) in 2020’s final quarter. That’s down from 3.7% growth in the September quarter and a 23% gain in the second quarter, according to Bloomberg calculations based on previously reported figures.
Value of TikTok maker ByteDance approaches US$400 billion for new investors, sources say
Valuation of the Chinese start-up has been boosted by rival Kuaishou’s recent IPO in Hong Kong ByteDance is said to be mulling an offshore listing for TikTok’s Chinese sibling app
Founder of TikTok owner ByteDance tells employees to stay grounded and focused as company expands in size and value
ByteDance CEO Zhang Yiming told employees to keep an ‘ordinary mind’ and make decisions without worrying about growth goals as the company moves closer to an IPO ByteDance’s valuation has surpassed that of Coca-Cola as it searches for new areas of growth, including gaming and education, while challenges overseas continue
What Southeast Asia wants from the Biden presidency
Besides great expectations there is also some scepticism directed towards the Biden presidency. The United States faces many challenges on the domestic front, particularly the public health and economic impacts of COVID-19 and the increasing polarisation of American society. These challenges may detract from its capacity in Southeast Asia. There are also concerns that like Obama, and unlike Trump, Biden will limit the number of freedom of navigation operations in the South China Sea which may further embolden China. Of even greater concern is the frequent sharp swings in US foreign policy from one administration to the next, which gives a strong impression of US unpredictability and unreliability in the long run.
‘Xinjiang cotton is my love’: designers and models put patriotism on show at China Fashion Week
Fashion designer Zhou Li says her garments on the catwalk are made exclusively with Xinjiang cotton and her designs support the people of the region Young Chinese show national unity and pride while rejecting Western claims of forced labour to produce Chinese cotton
Why the Tokyo Olympics will be Japan’s ‘economic recovery’ games
Japan, with a relatively low Covid-19 caseload, is well-positioned for a solid recovery in 2021 The latest round of quarterly earnings in the country has, on average, already shown improvement from the previous quarter
China-US Relations: Views From China
Understanding how ordinary Chinese people view the relationship is a crucial, but often overlooked, element in getting U.S. policy right. He has always kept hope, even though Sino-U.S. relations were so poor that the two sides almost decoupled during Trump administration. He pointed out that during the Mao era, while he was growing up, China and the United States fought several battles in North Korea and Vietnam, but two sides were able to cooperate together after. Compared to that, there is no reason to become enemies today, he believes.
US trade representative seen keeping up pressure on China
USTR annual report says it plans to continue to challenge countries that impose trade barriers and other hurdles.
US-China relations: trade chief Katherine Tai lays out hardline approach with ‘world’s leading offender’ label
Annual National Trade Estimate Report from the Office of the United States Trade Representative vowed to continue battling what it sees as significant trade barriers that are harming American companies and farmers It also vowed to work to address Chinese subsidies that have created excess capacities in the steel, aluminium and solar sectors, and could soon affect other industries
Encircle China? Who wants to be bricks on US’ wall against China?: Global Times editorial
The question is: How can the US turn so many countries with different interests and opinions into bricks to build a wall against China? Washington’s elaborate encirclement of China has been blown to a hideous mess just by China’s normal exchanges with other countries that had been delayed by the epidemic.
Has India become China’s colony? Seems like, going by what we import and what we export
Figures between 2014-15 and 2019-20 show that export of low-value raw materials & import of high-value manufactured goods characterised India’s trade with China.
China says it will stand with Middle East against foreign interference
‘We oppose imposing ideology on others, and using human rights to interfere in other nations’ affairs,’ Foreign Minister Wang Yi says after trip to six Middle Eastern countries Beijing also offers to host a security forum to help relaunch the collapsed Iran nuclear deal
The unusual case of China’s overseas lending practices
When a new Argentinian government came to power in 2016, it tried to cancel two dam projects for environmental reasons. The China Development Bank (CDB), one of three Chinese banks financing the projects, threatened to cancel a railway project that would carry Argentina’s agricultural goods to Chile’s Pacific ports if the dam projects were abandoned. In the end, Argentina decided to go ahead with building the dams.
China vaccines penetrate East Europe amid shortage of Western jabs
Beijing builds soft power as poor nations struggle to find Pfizer and other shots The European Union is struggling to secure COVID-19 vaccines for itself, as well as offer them to foreign countries, while China is exerting its influence by supplying jabs to emerging economies.
Chinese coronavirus vaccines’ efficacy data ‘meets WHO requirements’
Products made by Sinopharm and Sinovac ‘have levels of efficacy that would be compatible with [WHO] requirements’, chairman of Strategic Advisory Group of Experts says Vaccines now on verge of being accepted for the Covax Facility, which aims to make billions of doses available to people in poorer countries
Canada had to arrest Meng Wanzhou and it was not arbitrary, but detention is now unlawful, her lawyer says
Lawyer Gib van Ert’s comments at extradition hearing are in contrast with the position of China’s government about Huawei executive’s 2018 arrest Meng’s lawyer presented reports suggesting the basis for US charges, relating to transactions by foreign entities, was unlawful overreach
Hong Kong: Jimmy Lai among seven activists found guilty over protests
Jimmy Lai is the founder of Apple Daily, is frequently critical of Hong Kong and Chinese leadership
Seven of Hong Kong’s most prominent pro-democracy campaigners have been convicted of unlawful assembly relating to huge demonstrations two years ago.
Tiananmen Square watch withdrawn from sale by auction house
Watch given to Chinese troops who took part in 1989 crackdown pulled by Fellows after vendor received online threats
Service Asie Pacifique
Place Sainctelette 2
Tél 02 421 85 09 – Fax 02 421 87 75
Copyright © 2020 awex, All rights reserved