Tag: Economy

Chinese President Xi Meets With US Executives as Investment Wanes

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BEIJING —  China’s President Xi Jinping met American business leaders at the Great Hall of the People in Beijing on Wednesday, as the government tries to woo back foreign investors and international firms seeking reassurance about the impact of new regulations. Beijing wants to boost growth of the world’s second-largest economy after foreign direct investment shrank 8% in 2023 amid heightened investor concern over an anti-espionage law, exit bans, and raids on consultancies and due diligence firms. Xi’s increasing focus on national security has left many companies uncertain where they…

China Files WTO Dispute Against US Over ‘Discriminatory’ EV Subsidies    

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China began dispute settlement proceedings against the United States at the World Trade Organization on Tuesday, accusing Washington of “discriminatory” electric vehicle subsidies. The subsidies, starting this year under the 2022 Inflation Reduction Act, render U.S. car buyers ineligible for tax credits ranging from $3,750 to $7,500 if certain battery components were made by Chinese, Russian, North Korean or Iranian manufacturers. China’s permanent mission to the WTO said the policies are “under the disguise of responding to climate change,” but are “in fact contingent upon the purchase and use of…

German Industry Skeptical of China’s Vow to Treat Foreign Firms Equally 

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FRANKFURT/BERLIN —  A fresh pledge by Beijing to treat foreign companies like domestic rivals drew a cool response from one of its biggest trading partners, Germany, where industries called for concrete actions rather than words to create a true level-playing field. Germany’s engagement in the world’s No.2 economy has been in focus, partly because China remains its biggest trading partner but also because Berlin has asked companies to diversify away from what it calls “partner, competitor and systemic rival.” Beijing’s efforts to make sure international companies stay engaged come as…

China’s Renewables, Oil Consumption Fit Gulf States, Analysts Say

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Tel Aviv, Israel —  During China’s annual national legislature this month, Premier Li Qiang announced plans to construct more solar and wind farms as well as hydropower projects. China is already the world’s largest producer of renewable energy and also holds near-monopolies on the globe’s renewable energy manufacturing and supply chain. Last year alone China produced more solar panels than the U.S. has ever produced in total. China’s dominance in electric vehicle battery components and solar power panels has rattled Western governments, including those of the European Union and the…

New Study Reports Widespread Forced Labor Abuses

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Forced labor generates $236 billion a year in illegal profits, a dramatic increase of $64 billion since 2014, a new study by the International Labor Organization reported on Tuesday. The study said the increase is due to a growing population of people forced into labor and the correlation between higher levels of exploitation and higher profits. Traffickers and criminals who use forced labor can generate around $10,000 per victim. The most prevalent use of forced labor is commercial sexual exploitation, the study found. While accounting for 27% of the total…

Chinese Officials Acknowledge Economic Challenges

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BEIJING —  China needs to do more to boost employment and stabilize its property market, top officials acknowledged Saturday, as policymakers struggle to revive the country’s battered economy. Beijing is grappling with a prolonged property sector crisis, record youth unemployment and a global slowdown hammering demand for Chinese goods. Youth unemployment hit an unprecedented 21.3% in mid-2023 before officials paused publishing monthly figures. Home prices have in turn fallen for months, with several major property developers struggling to stay afloat. And on the sidelines of a weeklong annual meeting of…

China Unveils Ambitious Economic Growth Target Despite Weak Public Confidence

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Taipei, Taiwan —  China’s top leaders set an ambitious economic growth target of 5% for 2024 Tuesday, vowing to “seek progress while maintaining stability” amid a sluggish economy and weak confidence among investors and consumers. Delivering his first work report since assuming the second-most powerful position in China last October, Chinese Premier Li Qiang acknowledged that China faces an environment characterized by opportunities, risks, and challenges but emphasized that favorable conditions still outweigh unfavorable factors, according to China’s official Xinhua News Agency. In the face of weak economic growth worldwide…

Facing Chinese EV Rivals, Europe’s Automakers Squeeze Suppliers on Costs

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London —  Europe’s automakers and their already-stretched suppliers face a tough year as they race to cut costs for electric models to counter leaner Chinese rivals which are bringing cheaper vehicles to challenge them on their home turf. A big question is how much more Europe’s automakers can squeeze out of suppliers that have already started laying off workers, with many smaller companies hard hit by supply chain issues during the pandemic. The difference between Europe’s legacy automakers and more EV-focused Chinese manufacturers will be on stark display this week…

Dior Postpones Hong Kong Fashion Show ‘Indefinitely’

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HONG KONG —  Dior has postponed a fashion show set to be held in Hong Kong next month, a city official confirmed Saturday, dealing a blow to the financial hub’s ambitions to boost its economy through major events. Hong Kong is courting top international celebrities and brands in the hope of rebooting its reputation, which has been battered by years of social unrest and strict pandemic curbs. The Dior fashion show — meant to feature artistic director Kim Jones and the men’s autumn collection — was to be one of…

US Should Block Chinese Auto Imports From Mexico, US Makers Say

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WASHINGTON —  The U.S. government should block the import of low-cost Chinese autos and parts from Mexico, a U.S. manufacturing advocacy group said Friday, warning they could threaten the viability of American car companies. “The introduction of cheap Chinese autos — which are so inexpensive because they are backed with the power and funding of the Chinese government — to the American market could end up being an extinction-level event for the U.S. auto sector,” the Alliance for American Manufacturing said in a report. The group argues the United States…