Posts belonging to Category China



US has started ‘the biggest trade war’ in history

Trump readies new tariffs on China

The Trump administration is preparing another round of tariffs on Chinese goods worth $200 billion, ramping up the US-China trade war. Trade Representative Robert Lighthizer on Tuesday released a list of thousands of additional goods that could face 10% tariffs after a public comment period. It includes fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves.

The move comes after the United States imposed 25% tariffs on Chinese goods worth $34 billion last Friday. Beijing immediately responded with its own tariffs on US goods worth $34 billion.

Weak debut fot Xiaomi shares

Unprofitable territory?

Millions of shares in Xiaomi Corp. could be in unprofitable territory right from the start. According to the smartphone maker’s prospectus, a total 48,787,104 Series F-1 preferred shares were issued to investors between December 2014 and August 2017. Early backers came into the startup through preferred stock that converts to ordinary shares upon Xiaomi’s IPO. Accounting for splits and adjustments, the preferred stock converts to Class B shares at a cost that’s 18.82 percent below the expected offer price, Xiaomi’s prospectus states, implying a price of HK$15.83 per share.

Looming ‘financial panic’ in China

Chinese stocks are in a bear market

Sentiment on the Chinese economy has taken a turn for the worse. Chinese economic data has started to falter after a period of near-relentless consistency over the past couple of years. Recent months have seen Chinese stocks and the Chinese yuan tumbling.

The benchmark Shanghai Composite Index has fallen over 20% since late January, leaving it in a technical bear market. It currently sits at the lowest level since May 2016, having been at a two-year high earlier in the year. The Chinese yuan has also been hammered, losing over 6% since late March, leaving it at the weakest level since late last year.

https://www.businessinsider.com/

Trade war: Harley-Davidson shifts some production out of the U.S.

Trump last year thanked the company for “building things in America.”

On Monday, Harley-Davidson Inc. said it would shift some production out of the U.S. in order to mitigate the impact of European Union tariffs targeting its motorcycles. Those penalties — which Harley-Davidson estimates may cost it as much as $100 million annually — were in response to U.S. levies on steel and aluminum imported from the EU. Meanwhile, the Treasury Department is reportedly planning to aim a bazooka at a Chinese takeover problem that doesn’t really exist anymore by declaring a national economic emergency. What’s more troubling is a reported plan to crack down on exports of key U.S. technologies.

https://www.bloomberg.com/

The shipping industry is back

Indicator of the health of the global economy

90 percent of today’s global trade is carried by ship. The importance of shipping is why it’s one of the most useful indicators of the health of the global economy… And, more recently, the state of China’s economy – the largest consumer of a range of commodities, including iron ore, coal, copper, and zinc, and the largest importer of oil.

The Baltic Dry Index (BDI) tracks the price of shipping raw materials such as metals, grains and fossil fuels by sea. It takes into account the day-to-day changes in shipping rates for the three major carrier sizes: Capesize, Panamax and Supramax.

Shipping companies committed a classic boom/bust cycle mistake back in 2011. At the height of the commodity boom, they ordered a huge number of cargo ships. Global shipping capacity continued to expand by approximately a net 2.5 percent rate each and every year. Meanwhile, according to the World Bank, global trade of goods and services has declined by 7 percent from 2011 to 2016, as commodity prices collapsed.

https://www.businessinsider.com/

Trump seeks additional $200 billion in tariffs against China

Trump threatens even more

President Donald Trump threatened to sharply escalate a trade conflict with China, asking his administration to identify $200 billion in imported goods from China to be penalized with tariffs.

Trump’s move comes after Beijing announced it would retaliate in kind to planned U.S. tariffs on $50 billion in imports from China. The U.S. president’s latest plans, if carried out, would likely plunge the world’s two biggest economies into a trade war.

https://www.marketwatch.com/

Tariffs on $50 billion in Chinese goods

Trump to unveil tariff list targeting Chinese goods on Friday

U.S. President Trump has made up his mind to impose “pretty significant” tariffs on Chinese goods, an administration official said on Thursday, as Beijing warned that it was ready to respond if Washington chose to ratchet up trade tensions. Trump is due to unveil revisions to his initial tariff list targeting $50 billion of Chinese goods on Friday. The list will contain 800 product categories, down from 1,300 previously, according to another administration official and an industry source familiar with the list.

Trump no longer believes that Beijing’s influence over North Korea is a compelling reason to ease up on trade talks now that his administration has opened up a direct line of communication with the nuclear-armed country, the first administration official said. U.S. Treasury Secretary Steven Mnuchin argued against imposing the tariffs at a White House meeting on Thursday but he was not expected to prevail, the official said.

The Chinese government’s top diplomat, State Councillor Wang Yi, said his country was prepared to respond if Trump went ahead with the tariffs.

Alibaba’s Ant Financial fintech affiliate raises $14 billion

Ant Financial operates Alipay payment service

Ant Financial, the financial services affiliate connected to Alibaba which operates the Alipay mobile payment service, has confirmed that it has closed a Series C funding round that totals an enormous $14 billion.
The rumors have been flying about this huge financing deal for the past month or so, with multiple publications reporting that Ant — which has been strongly linked with an IPO — was in the market to raise at least $9 billion at a valuation of upwards of $100 billion. That turned out to be just the tip of the iceberg here.

The money comes via a tranche of U.S. dollar financing and Chinese RMB from local investors. Those names include Singapore-based sovereign funds GIC and Temasek, Malaysian sovereign fund Khazanah Nasional Berhad, Warburg Pincus, Canada Pension Plan Investment Board, Silver Lake and General Atlantic.

Showdown at G7

Trump sticks with hard line on trade

U.S. President Donald Trump is not backing down from the tough line he has taken on trade, the White House’s top economic adviser said on Wednesday, setting the stage for a showdown with top allies at this week’s G7 summit in Canada.
The meeting on Friday and Saturday in Charlevoix, Quebec, will be the first chance G7 leaders have had to confront Trump in person since U.S. tariffs on steel and aluminum imports from Canada, Mexico and the European Union were imposed last week.

Trade War: Canada Retaliates

Tariffs on $12.8 Billion of U.S. Goods

Prime Minister Justin Trudeau retaliated swiftly against President Donald Trump’s metals tariffs by imposing his own levies on as much as C$16.6 billion ($12.8 billion) of U.S. imports in what Canada calls its strongest trade action since the Second World War.

Trudeau invoked decades of battles fought alongside the U.S. and defending North American airspace as proof the U.S. tariffs based on a national security investigation are “unacceptable” and “punitive.” The Canadian tariffs of 25 percent on steel and 10 percent on aluminum will aim to match U.S. penalties on a dollar-for-dollar basis, based on export values, according to Foreign Affairs Minister Chrystia Freeland.

https://www.bloomberg.com/