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…
Tag: International trade
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…
China launches tax investigations into Apple iPhone maker Foxconn
China’s tax authorities have launched multiple investigations into the company that makes the iPhone, months after its billionaire founder announced he would run in Taiwan’s presidential elections. Foxconn faces tax audits of its operations in China, as well as investigations into land use in two Chinese provinces, according to reports by local media. The investigations, which were confirmed by the Taiwan-based manufacturer but have not been officially announced by any of China’s government departments, are thought to be politically motivated. Foxconn’s founder, Terry Gou, announced in August he would run…
Australia rules out cancelling Chinese company’s lease over Port of Darwin
Australia is moving to repair ties with China ahead of Anthony Albanese’s trip to Beijing, ruling out cancelling a Chinese company’s lease over the strategically important Port of Darwin. The move, which is likely to be welcomed by the Chinese government, comes as Australia also prepares to scrap tariffs on imports of Chinese wind towers, potentially defusing one of Beijing’s trade complaints. The Australian government announced on Friday afternoon that the Landbridge Group would be allowed to continue with its long-term lease over the Port of Darwin. China has long…
Australian government says ‘yeah, no’ to deal with China to drop wine tariffs
The Australian government has said “yeah, no” to a reported package deal offer from China to drop its tariffs on Australian wine in return for more favourable treatment of its wind towers, railway wheels and stainless steel sinks. The agriculture, forestries and fisheries minister, Murray Watt, said on Sunday that the Albanese government regards these as “entirely separate matters” but will seek to resolve remaining trade issues through dialogue. In August, China announced it would remove tariffs on Australian barley, resulting in Australia dropping its dispute in the World Trade…
China reportedly extends iPhone ban to more workers as tensions with US rise
China’s government has reportedly expanded its ban of iPhones to local government workers and state-owned companies, a day after it emerged central government employees were forbidden from bringing the devices to work. Several agencies had begun instructing employees not to bring iPhones to work and the ban was expected to be further extended, Bloomberg reported. Nikkei reported at least one state-owned company had told its employees that anyone working with trade secrets could not bring their iPhones, Apple Watches or AirPods into work from next month. The ban on the…
UK solar could be ‘dumping ground’ for products of Chinese forced labour, ministers warned
The UK risks becoming a dumping ground for the products of forced labour from Xinjiang province in China if it rejects reforms by members of the foreign affairs select committee with cross-party support, ministers have been warned. An amendment to the energy bill, due to be debated on Tuesday, would require solar energy companies to prove their supply chains are free of slave labour. The Xinjiang region is the source of 35-40% of the world’s solar-grade polysilicon, the key raw material in the solar photovoltaic supply chain. The amendment to…
Australia’s oversupply of wine tops 2.8bn bottles in wake of China trade dispute
Australia has an oversupply equivalent to more than 2.8bn bottles of wine – a little more than 100 bottles per person – after the trade dispute with China slashed exports to the biggest consumer of Australian wines. The excess wine is being stored in large steel vats in wineries across Australia, equating to 859 Olympic wine-filled swimming pools. The removal of Chinese tariffs on Australian barley has some grape growers optimistic that the five-year wine tariffs implemented in 2021 may be dropped early, but a new Rabobank report suggests even…
Anthony Albanese vows to press Xi Jinping to remove trade barriers on Australian wine, lobster and beef
Anthony Albanese has promised to stand up for Australian wine, lobster and beef exporters when he meets with the Chinese president, Xi Jinping, as early as next month. The prime minister said in a speech on Monday night that recent progress was “the result of the deliberate, consistent and principled approach we have taken to stabilising the relationship”. While welcoming Beijing’s decision to scrap hefty tariffs on Australian barley, Albanese said he would press for other trade impediments to be removed. Albanese said the resumption of the barley trade between…
China agrees to scrap barley tariffs in easing of trade tensions with Australia
China has agreed to scrap its 80% tariffs on Australian barley, in a major win for Canberra’s push to ease trade barriers between the two countries. The tariffs were first imposed in 2020 at the height of tensions, and prompted a lengthy challenge by Australia through the World Trade Organization. In a notice on its website published on Friday, China’s commerce ministry announced that “in view of the changes in the market situation of barley in China” it was “no longer necessary to continue to impose anti-dumping duties and countervailing…