China’s economy showed further signs of weakness last month as it comes under strain from Donald Trump’s trade wars and domestic problems, with factory output and consumer spending rising at their slowest pace for about a year. The disappointing data adds pressure on Beijing to roll out more stimulus to fend off a sharp slowdown, with a debt crisis denting the country’s once-booming property sector and exports facing stronger headwinds. Economists were split over whether policymakers should introduce more near-term fiscal support to hit their annual 5% growth target, with…
Tag: International trade
UK’s new business secretary Peter Kyle expected to visit Beijing in first week
The UK’s new business secretary, Peter Kyle, is expected to fly to Beijing this week as part of Keir Starmer’s continuing efforts to revitalise the UK’s trade relationship with China and provide growth to the British economy. The former science and technology secretary, who was promoted in Friday’s government reshuffle, is expected to land in China on Wednesday, picking up the schedule of his predecessor, Jonathan Reynolds, who is now the chief whip. Kyle will first travel to Washington as part of the preparations for Donald Trump’s state visit to…
‘Vital to be friends’: Putin, Xi and Modi meet in message to western counterparts
They stood together like old friends, heads thrown back in jovial laughter, clutching one another’s hands affectionately. Except this was no ordinary gathering of three men, but a meeting of three of the most powerful non-western leaders: Vladimir Putin, Xi Jinping and Narendra Modi. The overt displays of intimacy were widely regarded by observers as a telling message of defiance aimed at their western counterparts, in particular Donald Trump, who just a few days earlier had slapped India with 50% import tariffs, among the harshest of the US president’s trade…
Trump tariffs: global parcel shipments to US lose exemption
The US tariff exemption for package shipments valued under $800 officially ended on Friday, raising costs and disrupting supply chain models for a range of businesses, with Trump administration officials saying the change would be permanent. There is now a six-month transition period under which postal service shippers can opt to pay a flat duty of $80-$200 per package depending on the country of origin, the officials added. The US Customs and Border Protection (CBP) agency began collecting normal duty rates on all global parcel imports, regardless of value, after…
Trump’s China trade truce extension spurs market rally
Donald Trump’s decision to extend a truce in the trade war with China has triggered a stock market rally across the globe. On Monday night, the US president signed an executive order extending the deadline for higher tariffs on China until 10 November. Beijing said early on Tuesday it would suspend additional tariffs on US goods for a further 90 days. In response, markets in Japan and Australia hit record highs on Tuesday, as expectations grow that the US and China could secure a trade agreement before the end of…
Why Peak China may finally have arrived | George Magnus
Proclamations about the inevitability of China’s dominance of the global economic system, or the so-called Chinese century, were made long before Donald Trump’s attempts to stymie its trade with the US. Common concerns about coercive politics and human rights aside, some notions of China as an unstoppable economic, technological and military behemoth sit alongside others focused more on an increasingly sclerotic, over- centralised political economy, that depends on wasteful economic stimulus, and features poor governance and institutions. The fusion of these notions suggests that we may already have reached “peak…
Nvidia and AMD agree to pay 15% of China chip export revenues to US
The chipmakers Nvidia and AMD have agreed to give the US government 15% of their revenue from advanced chips sold to China in return for export licences to the key market. The unprecedented move, an apparent reversal of US national security restrictions on the chip sales, signalled an easing in the US-China trade war. Donald Trump has weaponised trade restrictions and tariffs to bring business to US shores. However, the quid pro quo arrangement, first reported by the Financial Times, is potentially unconstitutional. The arrangement will lead to Nvidia giving…
The Guardian view on Trump’s tariffs: both a political and an economic threat | Editorial
Donald Trump’s 1 August tariffs deadline did what it was always intended to do. It kept the markets and the nations guessing amid last-minute uncertainty. It attempted to reassert the global heft of the United States economy to take on and master all comers. And it placed President Trump at the centre of the media story, where he always insists on being. In the event, there were some last-minute agreements struck this week, few of them fair or rational in trade terms, most of them motivated by the desire to…
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…
EU may as well be ‘province of China’ due to reliance on imports, says industrialist
The EU may as well “apply to be a province of China” such is its inability to wean itself off that country’s supply of critical raw materials used in everything from electric vehicles to smartphones and wind turbines, a leading German industrialist has said. As chief executive of AMG Lithium, the EU’s first factory to make the lithium hydroxide used in many car batteries, Stefan Scherer sits at the centre of what has been dubbed a new gold rush. But the chemist said China will continue to dominate battery technology…