Tag: United States Economy

Day After Xi Meeting, Biden Says U.S. Has ‘Real Differences’ With China

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President Biden said Thursday that the United States has “real differences with Beijing,” one day after he after he held an hourslong meeting with President Xi Jinping of China at a moment of deep tension between the two countries. Speaking to executives at the APEC summit in San Francisco, Mr. Biden noted that he and Mr. Xi had agreed to resume military to military communication to “reduce the risk of miscalculation” — a line that got a round of applause from the room. “We have real differences with Beijing,” Mr.…

China’s Xi Jinping Draws Elon Musk, Tim Cook and Other U.S. CEOs to Gala in San Francisco

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The streets outside the San Francisco hotel where the Chinese leader, Xi Jinping, addressed a crowd of American business executives Wednesday night were chaotic, echoing with police sirens and the chants of protesters. A woman had strapped herself to a pole 25 feet in the air in front of the hotel, yelling “Free Tibet!” as a cold rain fell. But inside the ballroom of the Hyatt Regency, the atmosphere was warm and friendly. More than 300 executives and officials listened attentively as Mr. Xi — the leader of a country…

Global Markets Cheer on Better Than Expected Inflation Data

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Good news for global markets Yesterday’s impressive rally in U.S. stocks and bonds has gone worldwide this morning, as investors see central banks making gains in their fight against inflation. Adding to the good news was a breakthrough in the House last night that could avert a government shutdown. S&P 500 futures signal further gains at the opening bell. The question now is whether this represents a false dawn on inflation, or the start of a durable decline in rising costs — and interest rates. Here’s what’s exciting investors: Yesterday’s…

The Rise and Fall of the U.S.-China Economic Partnership

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For more than a quarter century, the fortunes of the United States and China were fused in a uniquely monumental joint venture. Americans treated China like the mother of all outlet stores, purchasing staggering quantities of low-priced factory goods. Major brands exploited China as the ultimate means of cutting costs, manufacturing their products in a land where wages are low and unions are banned. As Chinese industry filled American homes with electronics and furniture, factory jobs lifted hundreds of millions of Chinese from poverty. China’s leaders used the proceeds of…

A New Law Supercharged Electric Car Manufacturing, but Not Sales

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President Biden’s signature climate law has stimulated a surge of investment in electric vehicle production across the country, including tens of billions of dollars on battery plants across the South and new assembly lines near the Great Lakes. Based on early evidence, it is succeeding at a goal that economists have long considered difficult and costly: using the power of government to rapidly grow a new industry. That growth could prove crucial for the other side of the electric vehicle equation: enticing more consumers to buy them. That’s because Mr.…

Fragile Global Economy Faces New Crisis in Israel-Gaza War

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The International Monetary Fund said on Tuesday that the pace of the global economic recovery is slowing, a warning that came as a new war in the Middle East threatened to upend a world economy already reeling from several years of overlapping crises. The eruption of fighting between Israel and Hamas over the weekend, which could sow disruption across the region, reflects how challenging it has become to shield economies from increasingly frequent and unpredictable global shocks. The conflict has cast a cloud over a gathering of top economic policymakers…

Diesel Prices Could Keep Inflation High

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Inflation has been easing around the world. But what happens next could depend partly on the cost of diesel, a wild card that few analysts have been able to predict well. Higher gasoline prices — lit up on giant signs on streets and highways — are typically the most visible, visceral reminder of inflation to consumers. But analysts say diesel can have a bigger impact on inflation because the fuel powers trucks, industrial machinery and agricultural equipment. The prices of heating oil and jet fuel are also closely connected to…

U.S. Issues Final Rules to Keep Chip Funds Out of China

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The Biden administration on Friday issued final rules that would prohibit chip companies vying for a new infusion of federal cash from carrying out certain business expansions, partnerships and research in China, in what it described as an effort to protect United States national security. The regulations come as the Biden administration prepares to disburse more than $52 billion in federal grants and tens of billions of dollars of tax credits to build up the U.S. chip industry. The new rules aim to prevent chip makers that benefit from U.S.…

$100 Oil Could Scramble the Fed’s Efforts to Ease Inflation

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What rising oil prices mean for the Fed Crude oil has slipped below the 10-month high it hit on Tuesday. But analysts say the monthslong rally that has sent prices close to $100 a barrel isn’t over, posing a big risk for global growth and complicating central bankers’ efforts to tame inflation. Expect Jay Powell to field plenty of questions about oil prices at his news conference on Wednesday. The crude rally has become a wild card for the Fed chair and other policymakers grappling with high inflation. The Fed…

Senate Committee Backs Bill to Deepen U.S. Economic Ties With Taiwan

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The Senate Finance Committee on Thursday passed a bill that would deepen economic ties between the United States and Taiwan and effectively create a tax treaty that is expected to pave the way for more Taiwanese investment in the American semiconductor industry. The effort by Congress could inflame tensions between the United States and China at a time when the Biden administration has been working to stabilize the relationship. President Biden dispatched three cabinet officials to Beijing this summer to improve dialogue between the world’s two largest economies. In a…