Rachel Reeves has dismissed the idea of economically disengaging from China, amid concerns the US may put pressure on the UK to limit its deals with Beijing. The chancellor, who will discuss a trade deal with the US on a trip to Washington next week, said it would be “very foolish” for Britain to have less involvement with Xi Jinping’s administration. The Wall Street Journal reported this week that US officials would attempt to use trade deals and tariff discussions to economically isolate China. Keir Starmer spoke to Donald Trump…
Tag: International trade
Nvidia’s CEO makes surprise visit to Beijing after US restricts chip sales to China
The chief executive of the American chip maker Nvidia visited Beijing on Thursday, days after the US issued fresh restrictions on sales of the only AI chip it was still allowed to sell to China. Jensen Huang’s surprise visit was on the invitation of a trade organisation, according to a social media account affiliated with state media. The official broadcaster China Central Television said Huang met Ren Hongbin, the head of the China Council for the Promotion of International Trade, where he said he hopes “to continue to cooperate with…
Temu and Shein warn of US price hikes from next week due to Trump tariffs
Two of China’s largest fast fashion retailers, Temu and Shein, have warned US customers that they will face price increases from next week, as Donald Trump’s hefty tariffs on Chinese imports come into force. Both companies will be hit by new import levies, which will mean taxes of up to 145% being applied to Chinese goods. They will also suffer from Trump’s cancellation of the “de minimis” exemption, under which shipments worth less than $800 (£600) could be imported duty-free. That exemption was crucial in helping the low-cost retailers make…
China scraps tariffs on Australian wine
China has dropped tariffs on Australian wine, a long-awaited decision heralded by the Albanese government as validation of its “calm and consistent approach” with the superpower on a series of controversial trade disputes. In a statement on Thursday the prime minister, Anthony Albanese, foreign minister, Penny Wong, and trade minister, Don Farrell, said they had been informed that from Friday, China’s duties on Australian bottled wine would come to an end. Australia would, in turn, discontinue its legal proceedings in the World Trade Organization, the government said. “We welcome this…
The Guardian view on supply chains: not only just in time, but just in case | Editorial
In 2012, shortly before becoming China’s top leader, Xi Jinping visited the Port of Los Angeles to discuss boosting trade. What then looked like a locus of cooperation has now become another site for suspicion as Sino-American relations remain tense. Last month, the Biden administration announced $20bn of funding for port infrastructure, much of it to replace cargo cranes that have almost all been made by a state-owned Chinese firm. The US is concerned because the sophisticated pieces of equipment manage information about containers and their contents, their origins and…
China consumer prices plunge at fastest rate for 15 years as deflation fears deepen
China’s consumer prices fell at their fastest pace in 15 years in January, as the world’s second-largest economy sank deeper into deflation amid weakening demand. Data released on Thursday showed that China’s consumer price index tumbled last month, falling by 0.8% compared with a year earlier. It marks the fourth consecutive month of declines, as well as the sharpest drop since September 2009, when the global economy was still grappling with aftershocks from the 2008 banking crisis. Food prices were the biggest drag on the headline inflation figure, having fallen…
China’s many systemic problems dominate its outlook for 2024 | George Magnus
There were contrasting reactions when the US rating agency Moody’s downgraded China’s A1 credit rating outlook from stable to negative last month. Financial markets, focused on the economy, paid it barely any attention. Chinese state media, looking at the politics, saw red. Global Times called it “biased and unprofessional”. A few days later, the Ministry of State Security issued a statement stipulating that the only purpose of “negative talk” was to doubt or deny China’s socialist system, and to contain its development. The Chinese Communist party’s prickly attitude to criticism…
News live: Marles will ‘make right decision in Australia’s interest’ over deploying navy vessels to Red Sea, Farrell says
From 5h ago Sarah Basford Canales Marles will ‘make right decision in Australia’s interest’ over deploying navy vessels to Red Sea Earlier this morning, trade minister Don Farrell left open the possibility Australia could deploy navy vessels to the Red Sea amid ongoing attacks against commercial shipping from Iran-backed militia. This week the US asked Australia to send a warship to the region as part of its duties as a member of the international naval security taskforce, the combined maritime forces. It comes as the Yemen-based and Iran-backed Houthis warned…
EU expected to issue veiled warning to China over supply of cut-cost goods
The EU is to tell China that its €400bn (£343bn) trade deficit is not sustainable long term amid fears that it will flood the bloc with subsidised electric cars, solar panels and medical devices, threatening European manufacturing and jobs. Ursula von der Leyen, the European Commission chief, and Charles Michel, the European Council president, will meet Xi Jinping at a summit on Thursday, the second of its kind this year. They are expected to issue the Chinese president with a veiled warning that unless China does something about the supply…
Moody’s cuts China credit outlook to negative as economy slows
China’s ability to repay its government borrowing has been downgraded by the credit rating agency Moody’s, which said the ripple effects from a crisis in the property sector would undermine efforts to revive its flagging economy. Moody’s warned that Beijing would need to bail out local and regional governments and state-owned enterprises that were struggling with rising debts, hampering efforts to boost investment and growth. The rating agency downgraded its outlook for Chinese sovereign bonds from stable to negative on Tuesday, sending a signal to potential lenders that the risk…