Tag: United States Economy

China Is Full of Risk For U.S. Companies

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For decades, America’s corporate chieftains saw China as a money spinner. They gushed about its hundreds of millions of consumers, called it “one of the biggest opportunities” and made predictions that this would be “China’s century.” Now, those executives have come away from recent visits to the country with a more sober view. Western companies doing business in China are facing pressures that were unimaginable several years ago. The country’s economy is floundering and its relationship with the United States is strained. Three years of border restrictions and an effective…

Factories May Be Leaving China, but Trade Ties Are Stronger Than They Seem

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The United States has spent the past five years pushing to reduce its reliance on China for computer chips, solar panels and various consumer imports amid growing concern over Beijing’s security threats, human rights record and dominance of critical industries. But even as policymakers and corporate executives look for ways to cut ties with China, a growing body of evidence suggests that the world’s largest economies remain deeply intertwined as Chinese products make their way to America through other countries. New and forthcoming economic papers call into question whether the…

Commerce Secretary Gina Raimondo Walks a Tightrope in China

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What to watch as Raimondo visits China Commerce Secretary Gina Raimondo, one of the Biden administration’s biggest Beijing hawks, kicked off her visit to China on Monday with a call to preserve a “stable economic relationship” between the two economic powers that “share over $700 billion of trade.” With relations between the countries at a critical juncture, Ms. Raimondo is now the fourth senior U.S. official to travel to China in less than three months. Her visit, which will include meetings with business leaders and government officials, including her Chinese…

U.S. Commerce Secretary Faces a Wide Range of Issues in China

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Gina Raimondo, the secretary of commerce, who arrived in Beijing on Sunday, is the latest Biden administration emissary seeking to stabilize ties between the world’s two largest economies. The fourth senior U.S. official to travel to China in less than three months, Ms. Raimondo is taking her trip at a critical juncture. Relations between the countries are strained, partly because the United States has clamped down on China’s access to technology that could aid its military. China’s economy also appears to be slowing, and Beijing has been trying to woo…

What China’s Economic Woes May Mean for the U.S.

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The news about China’s economy over the past few weeks has been daunting, to put it mildly. The country’s growth has fallen from its usual brisk 8 percent annual pace to more like 3 percent. Real estate companies are imploding after a decade of overbuilding. And China’s citizens, frustrated by lengthy coronavirus lockdowns and losing confidence in the government, haven’t been able to consume their way out of the country’s pandemic-era malaise. If the world’s second-largest economy is stumbling so badly, what does that mean for the biggest? Short answer:…

Commerce Secretary Gina Raimondo to Visit China Next Week

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Gina Raimondo, the secretary of commerce, will travel to Beijing and Shanghai for a series of meetings next week, becoming the latest Biden official to visit China as the United States seeks to stabilize the relationship between the countries. Ms. Raimondo will meet with senior Chinese officials and American business leaders between Aug. 27 and Aug. 30, the Department of Commerce said in an announcement Tuesday. The department said that Ms. Raimondo was looking forward to “constructive discussions on issues relating to the U.S.-China commercial relationship, challenges faced by U.S.…

Could U.S. Toughness on Chinese Business Have Unintended Consequences?

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At a moment when Washington is trying to reset its tense relationship with China, states across the country are leaning into anti-Chinese sentiment and crafting or enacting sweeping rules aimed at severing economic ties with Beijing. The measures, in places like Florida, Utah and South Carolina, are part of a growing political push to make the United States less economically dependent on China and to limit Chinese investment over concerns that it poses a national security risk. Those concerns are shared by the Biden administration, which has been trying to…

Interest Rate Jitters Sink the Giants of Tech

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Market whiplash In the span of a month, the bottom has dropped out of the bull-market rally as investors have come to grips with the prospect of “higher for longer” interest rates worldwide. The sell-off in global stocks and bonds picked up steam on Thursday. And weary market watchers will be looking for more hints on the Fed’s view at next week’s Jackson Hole summit of central bankers and policymakers. Technology stocks have been hit particularly hard. The high-flying FANG+ Index — which comprises the largest tech stocks by market…

‘Peak China’ (Post-Dynasty Version)

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“Peak China” refers to the hotly debated concept that China has reached the height of its economic power. Michael Beckley, head of the Asia Program at the Foreign Policy Research Institute, believes he coined the term in a 2018 article that argued China’s economy, the world’s second largest, would not necessarily overtake the U.S. economy, as many had long projected. He said he had been inspired by “peak oil.” NYT

How Geopolitics Is Complicating the Move to Clean Energy

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He is known as the Minister for Everything. From the government offices of Indonesia’s capital to dusty mines on remote islands, Luhut Binsar Pandjaitan commands authority as the nation’s essential power broker. A four-star general turned business magnate turned cabinet officer, Mr. Luhut’s paramount aspiration is transforming Indonesia into a hub for the production of electric vehicles. But as he pursues that goal, he and his country are increasingly vulnerable to geopolitical forces beyond their control. Though this archipelago nation has long sidestepped entanglements in ideological rivalries, it is increasingly…