China is urging its electric vehicle industry to stop cutting prices and rein in production amid fears that persistent deflation is imperilling economic growth. In recent months Chinese officials have talked repeatedly of the need to combat “involution” in sectors suffering from overcapacity, such as EVs, referring to the phenomenon of investing more effort and money for diminishing returns. Xi Jinping has spoken of the problem directly. In an unusually blunt speech this month, China’s president criticised provincial governments for blindly overinvesting in artificial intelligence, in computing power and in…
Tag: Asia Pacific
Weather tracker: deadly floods devastate northern China
At least 70 people have died in northern China after another bout of torrential rain triggered flooding, the latest in a series of extreme rainfall events in recent months. Between 23 and 29 July, Beijing and its surrounding areas recorded an average of 166mm, equivalent to the monthly norm. The suburban district of Miyun received the highest amount of rainfall, with 543mm recorded, equivalent to the region’s annual average. The death toll included 31 people in a Miyun care home, 10 who were swept away in a minibus in Shangxi…
China’s fast-fashion capital slows down under Trump’s trade war
Lingering at a day market for labourers in Panyu, an urban village on the outskirts of Guangzhou, Ms Qiu looks dejected. She is looking for a local factory that will hire her for the day to sew clothes – cheap tops and dresses that will be churned out on to China’s e-commerce platforms, or bundled up for export to western shoppers. But she is not having much luck. “The whole industry is struggling, and now there is a high tariff on Chinese goods because of the trade war. Many foreign…
Panama files lawsuits against owner of ports at centre of US-China struggle
Panama’s comptroller general has lodged two cases with the country’s supreme court against the owners of two ports at the centre of a geopolitical struggle between the US and China, in a move likely to be seen as a victory for Donald Trump in his attempt to rid the Panama canal of Chinese influence. The decision follows a failed attempt to sell the ports to a consortium headed by the US investment fund BlackRock and Swiss shipping firm MSC. The two ports, at each end of the Panama Canal, were…
Hong Kong democracy campaigner accuses UK police of asking her to ‘self-censor’
A former Hong Kong politician and prominent democracy campaigner has accused British police of asking her to “self-censor” and “retreat from public life” after officers asked her to agree to avoid public gatherings. The request, outlined in a signed “memorandum of understanding” seen by the Guardian, has alarmed exiled dissidents who fear it may embolden attempts to silence criticism of Chinese and Hong Kong officials worldwide. Carmen Lau, who moved to the UK in 2021, was asked to sign the formal agreement in March by Thames Valley police after her…
Anger grows in China over reports of online groups sharing explicit photos of women
Anger is growing on Chinese social media after news reports revealed the existence of online groups, said to involve hundreds of thousands of Chinese men, which shared photographs of women, including sexually explicit ones, taken without their consent. The Chinese newspaper Southern Metropolis Daily published a report last week about a group on the encrypted messaging app Telegram called “MaskPark tree hole forum”. It said it had more than 100,000 members and was “comprised entirely of Chinese men”. Men reportedly shared sexually explicit images of women either in intimate settings…
Chinese official makes rare admission of failings over deadly Beijing floods
A Beijing city official has issued a rare public acknowledgment of official failings in the authorities’ response to the severe flooding that hit China’s capital this week. Yu Weiguo, a Communist party secretary for Miyun, the northern district worst affected by this week’s extreme weather, said in a press conference on Thursday that there were “gaps” in the city’s readiness for the deadly floods. More than 40 people are confirmed to have died in the flooding that hit Miyun and Yanqing, another Beijing district, on Sunday and Monday. Nine are…
White House to end US tariff exemption for all low-value overseas packages
The United States is suspending a “de minimis” exemption that allowed low-value commercial shipments to be shipped to the United States without facing tariffs, the White House said on Wednesday. Under an executive order signed by Donald Trump on Wednesday, packages valued at or under $800 sent to the US outside of the international postal network will now face “all applicable duties” starting on 29 August, the White House said. The US president earlier targeted packages from China and Hong Kong, and the White House said the recently signed tax…
HSBC boss says Rachel Reeves putting up bank taxes would harm UK growth
The boss of HSBC has joined a growing chorus of bankers cautioning Rachel Reeves against increasing taxes on banks in her autumn budget, warning it risked “eroding” investment and ultimately harming UK growth. Georges Elhedery, its chief executive, said banks in the UK were already subject to the highest level of taxes on profits compared with other sectors, and paid more than in most other countries. He said placing further financial pressures on lenders could spell trouble for the UK economy. “Additional taxation on banks does run the risk of…
Taiwan president scraps Latin America trip amid reports the US opposed stopover in New York
Taiwan’s President Lai Ching-te will delay an expected trip to his country’s remaining allies in Latin America, amid conflicting accounts of the reason for the postponement. Lai was expected to travel to the Americas next month, as his government seeks to shore up support in a region where many countries have cut diplomatic ties in favour of relations with China, which claims Taiwan as its territory. Amid reports that the Trump administration had opposed a proposed stopover by the president in New York, his government said Lai had no overseas…