Tag: United States Economy

The Clock is Ticking on Improving China-U.S. Relations, Experts Say

Media Library

“There isn’t a clear message from the U. S., or the rest of us saying, ‘Here is an economic proposition. Here is why we think that working with us is going to be good for you in the long term. And here is what flows from that,’” she said. “Like who is a friend, right? Why are they a friend? What are the benefits of being a friend? What are the risks of not being a friend? “ The discussion also veered into larger geopolitical issues — mainly Taiwan and…

U.S. Debates How Much to Sever Electric Car Industry’s Ties to China

Media Library

The Biden administration has been trying to jump-start the domestic supply chain for electric vehicles so cleaner cars can be made in the United States. But the experience of one Texas company, whose plans to help make an all-American electric vehicle were upended by China, highlights the stakes involved as the administration finalizes rules governing the industry. Huntsman Corporation started construction two years ago on a $50 million plant in Texas to make ethylene carbonate, a chemical that is used in electric vehicle batteries. It would have been the only…

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

Media Library

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

Media Library

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

Media Library

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

Media Library

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

Media Library

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

Media Library

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

Media Library

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

Media Library

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.…