US-China trade war: who is really bleeding more from Donald Trump’s tariffs?
The US president sought to bring jobs and manufacturing back home. But while China has lost market share in the US, it is to other exporters like Vietnam. Also, China appears to have figured out how to maintain supply chains in the region.
China’s losses from its overseas takeover binge are piling up fast
Chinese buyers have not only stopped snapping up iconic overseas assets, the Covid-19 pandemic is ravaging the targets of deals that dened a headier era. Whereas some prolic acquirers such as HNA Group Co. and Anbang Insurance Group Co. began falling into disarray before the recent crisis, the impact on investments in sectors hit hardest by the outbreak means healthier owners are now feeling the pain. Conglomerate Fosun International Ltd. could soon see its 2015 I …They may be cautious, but they are not completely averse. Earlier this month, China Three Gorges Corp. agreed to buy 13 Spanish solar park assets owned by X-Elio Energy SL, a renewable energy company co-owned by Brookeld Renewable Partners LP and private equity rm KKR & Co. The deal could become one of the few Chinese acquisitions in Europe this year. Barclays’ Aagaard sees continued Chinese interest in future outbound deals, though focused more on deals that complement buyers’ core businesses. “The desire to do selective and strategic acquisitions overseas is still there, especially in sectors such as power, infrastructure and utilities, technology and consumer,” Aagaard said. “Chinese companies, both private and stateowned enterprises, are now taking a much more sophisticated approach both as buyers and also as owners of businesses.”
America must brace itself for a double-dip economic recession
Financial markets’ optimism about a V-shaped recovery from Covid-19 is not supported by the history of the US business cycle. With America still struggling to contain the pandemic, the lingering fears of infection will continue to impede any lasting recovery.
China’s industrial giants rebound for third successive month in July as coronavirus recovery continued
Industrial firms saw a year on year increase of 19.6 per cent in July, accelerating from an increase of 11.5 per cent in June, the fastest pace since June 2018. In the first seven months of the year, however, profits fell by 8.1 per cent, with May, June and July representing the only months of growth in 2020.
Coronavirus: Flights within China to ‘fully recover’ next month
Flights within China should fully recover by the start of next month according to a global travel data firm.
Global shipbuilding orders sink to 20-year low as industry grapples with new environmental rules, Covid-19 crisis
Ordering new ships is now the lowest priority for shipping companies as the pandemic has hit economic activity and supply chains. Fewer orders and slower fleet growth are likely to bolster shipping rates.
Covid-19 could be with us for next two to four years, one of China’s leading experts warns
It’s not what we want to hear as the lockdown lifts in the UK, the pubs re-open and the kids go back to school but one of China’s leading experts on Covid-19 has told ITV News that the virus is likely to be with us for at least the next two to four years.
Europe’s chip makers are vulnerable in US fight with Huawei
These chip makers face a potentially greater threat to business if China chooses to retaliate against the US by targeting one of their most important clients, Apple A chunk of the components made by European chip makers, such as STMicroelectronics and AMS, end up in Huawei’s smartphones.
Why China’s digital currency won’t threaten US dollar dominance
China’s digital currency and its cross-border payments system will enhance the renminbi’s role as an international payments currency if the government continues to reform financial markets and remove restrictions on capital flows. Nevertheless, the dollar will remain the global reserve currency of choice.
Can India Wrestle Supply Chains Away From China?
As some Western companies look to pull their supply chains out of China, India is designing incentives to lure global businesses to its shores.
Alibaba investors swap U.S. shares for Hong Kong amid crackdown
Many investors in Alibaba are choosing to switch from ADRs to Hong Kong-listed shares to avoid potential problems. Several of Alibaba Group’s biggest investors have converted billions of dollars in U.S. shares for Hong Kong stock in part to avoid potential U.S. sanctions and delistings of major Chinese technology companies.
China’s Alibaba won’t invest in Indian startups for at least six months, report says
Chinese internet giant Alibaba Group has put on hold plans to invest in Indian startups amid geo-political tensions between the two countries, Reuters reported Wednesday, citing two unnamed sources. The Chinese group, which has invested more than $2 billion in Indian startups since 2015, plans to freeze new investments in Indian startups for at least six months, the report said, adding Alibaba does not intend to reduce its stakes in existing portfolio firms.
U.S. Adds 38 New Huawei Affiliates to Entity List While Again Expanding Foreign-Produced Direct Product Rule
The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) has announced that it is further restricting access by Huawei Technologies Co. Ltd. and its designated non-U.S. affiliates (“Huawei”) to U.S.-produced technology and software. BIS first added Huawei to its Entity List on May 15, 2019 and has continued to impose additional export restrictions on Huawei under the U.S. Export Administration Regulations (“EAR”). Most recently, BIS published a Federal Register notice to implement the following enhancements. Although BIS published this Federal Register notice on August 20, 2020, the following rule changes took effect retroactively as of August 17, 2020:
Coronavirus impact underscores need for sustainable investment, experts say
Investments in funds based on sustainability principles rose US$70 billion in the April-June period at height of the pandemic. Pursuit of sustainable operations has been set back in short-run due to funding issues as companies fight for survival, but long-term trend intact.
JPMorgan Chase to pay $1bn for China fund expansion – reports
The bank has agreed to buy Shanghai International Trust’s 49% stake in China International Fund Management. JPMorgan Chase will need to pay at least $1bn to proceed with the buyout of the remaining share of its Chinese mutual fund business, according to a Shanghai United Assets and Equity Exchange statement yesterday.
Evergrande billionaire takes early losses in plans to overtake Tesla, dominate global electric car market
Evergrande New Electric Vehicle Group losses widen in the first half as billionaire readies plants for mass production in 2021. Company aims to produce up to 1 million units within three to five years to become ‘the biggest and strongest’ in the world.
TikTok CEO Kevin Mayer quits amid US pressure on ByteDance to sell the short video service
Mayer expects ‘a resolution very soon’ for TikTok’s situation in the US, which may fuel further speculation on owner ByteDance’s next move. ByteDance has been reportedly involved in separate talks to divest TikTok’s US operation with Netflix, Microsoft and Oracle.
Tiktok CEO Kevin Mayer quits as US pressure mounts
Chief executive officer of Bytedance’s video-sharing app Tiktok, Kevin Mayer, said Wednesday that he was resigning, following an executive order from US President Donald Trump requiring the company to sell its US operations. Mayer said in a note to employees that he had decided to leave the company and that Vanessa Pappas, the general manager of Tikok US, will take over as interim global head of the company, The New York Times reported Thursday.
TikTok may face UK government restrictions but unlikely to be blocked from setting up London office
A review led by the prime minister’s chief of staff Eddie Lister is likely to find TikTok does not pose as big a security threat as Huawei, a source says. Executives at ByteDance’s UK operation are, however, braced for greater scrutiny from regulators and politicians.
Shanghai’s Fosun Pharma on track to bring German partner’s Covid-19 vaccine to China by year-end
Fosun earlier obtained the licence from Mainz-based BioNTech to exclusively develop and commercialise its mRNA Covid-19 vaccine products in China. Fosun has dosed 72 volunteers with BioNTech’s vaccine in a phase-one trial in Jiangsu province, and the preliminary safety data are ‘good’, said CEO Wu Yifang.
Shenzhen looks to draw tech firms with new dual-class share rule
Lawmakers in Shenzhen, a high-tech manufacturing hub in southeast China, passed a rule Wednesday allowing companies to incorporate with a dual-class share structure as the city seeks to attract more tech companies to its economy and stock exchange. The move followed just days after the Chinext startup board on the Shenzhen Stock Exchange welcomed its first batch of companies subject to a new, Nasdaq-style initial public offering process—part of China’s efforts to lure tech companies to list at home
Australian PM wants federal veto over states’ belt and road deals with China, citing ‘national interest’
The state of Victoria last year signed a deal to join President Xi Jinping’s signature infrastructure plan but the new law would allow federal government to block that agreement. China remains Australia’s largest trading partner but relations have deteriorated since Canberra banned Huawei from its 5G network and passed a law to crack down on foreign interference.
Taiwan stuck at a crossroads with US and China over trade deals, facing conflicting prospects
Speculation has mounted as to whether China will allow its Economic Cooperation Framework Agreement with Taiwan to end amid rising political tensions. US Health and Human Services Secretary Alex Azar also floated the prospect of renewing long-running US-Taiwan trade talks, but doubts remain on both fronts.
As China’s role in Mekong grows, Asean states must weigh ties with US, other powers
China’s belt and road projects and its engagement with the region via the Lancang-Mekong Cooperation are fuelling a strategic competition in Southeast Asia. The US, Japan and South Korea have deepened their commitment to Mekong nations, with each also affirming Washington’s policy of a free and open Indo-Pacific.
5G unease and concerns over human rights issues mar China’s charm offensive through Europe
Chinese Foreign Minister Wang Yi tries to counter US lobbying and a ‘new cold war’ while pushing belt and road projects to pandemic-ravaged EU nations. China’s actions in Hong Kong and Xinjiang emerge as issues for politicians in Italy and the Netherlands.
Dutch Foreign Minister Stef Blok raises Hong Kong and human rights concerns with Chinese counterpart Wang Yi
Arrests of journalists and lawmakers in city, delay of Legco elections and new national security law all ‘extremely worrying developments’, Blok says. Minister also spoke about treatment of Uygurs in Xinjiang during meeting with Wang, who is on five-nation tour of Europe.
US-China relations: Mark Esper urges allies to help counter China in Indo-Pacific
Defence secretary says the region has become ‘the epicentre of great power competition’ with Beijing. He warns the PLA’s bid to become a world-class military will ‘undoubtedly embolden’ its actions in the East China and South China seas.
Chinese missile launch ‘could increase chances of military clash with US’
Firing ‘aircraft-carrier killer’ into South China Sea may contribute to a reinforcement of hawkish attitudes on both sides, analysts say. Missiles are seen as a warning to the US but one that could cause misunderstanding or a hardening of Washington’s stance.
US-China military clash a ‘real danger’ before November vote, warns ex-Australia PM Kevin Rudd
A collapse in diplomatic engagement between the two superpowers has heightened the risk of an incident escalating into a crisis, the former PM said. His remarks came in a wide-ranging talk he gave touching on the South China Sea, Taiwan, his successor’s failures and the dangers of severing China ties.
Meet China’s political convention watchers
China has long been a nation of involved and cynical election-watchers, at least when it comes to the U.S. presidential race. Soon after first landing in China in 2001, your host was surprised to hear a commonly voiced sentiment: U.S. elections were shams, with outcomes prearranged by shadowy powers. It seemed appropriate, somehow, in a place that had never seen democracy in action above the village level.
Taiwan to open representative office in Aix-en-Provence in Southern France
This will be Taiwan’s third new overseas office of 2020 following establishment of Guam, Somaliland consulates.
For China’s Social-Distancing Singles, Love Is in the Cloud
Livestream matchmaking platforms like Yi Dui are the trendy new hot spots for coupling up.
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