A trade truce between the US and China was set to expire on Tuesday, threatening an escalation of economic tensions between the world’s two largest economies. Chinese officials said they hoped the United States would strive for “positive” trade outcomes on Monday, as the 90-day detente reached between the two countries last month was due to expire. “We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state … and strive for positive outcomes on the…
Tag: World news
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…
‘I don’t expect to live a normal life’: how a Leeds teenager woke up with a Chinese bounty on her head
It was Christmas Eve 2024 and 19-year-old Chloe Cheung was lying in bed at home in Leeds when she found out the Chinese authorities had put a bounty on her head. As she scrolled through Instagram looking at festive songs, a stream of messages from old school friends started coming into her phone. Look at the news, they told her. Media outlets across east Asia were reporting that Cheung, who had just finished her A-levels, had been declared a threat to national security by officials in Hong Kong. There was…
Chinese investment banker Bao Fan released from detention after two years, source says
Bao Fan, star dealmaker and the founder of the boutique investment bank China Renaissance Holdings, has been released more than two years after being detained by Chinese authorities, according to a person with knowledge of the matter. China Renaissance sent shock waves through the country’s financial sector in 2023 when it announced it was unable to contact Bao, who founded the bank in 2005 with two others and still owns nearly 49% of its issued shares. The company’s share price tanked as a result of his detention. He was one…
Maglev train researchers may have solved ‘tunnel boom’ shock waves
Researchers hope they may have solved the “tunnel boom” problem as they prepare to roll out China’s latest prototype magnetic levitation train. The newest version of the maglev train is capable of travelling at 600km/h (about 370mph). However, the train’s engineers have wrestled with the problem of the shock waves which occur as the train exits the mouth of a tunnel. When a high-speed train enters an enclosed space such as a tunnel, air in front is compressed, like in a piston. The resulting fluctuations in air pressure coalesce at…
China’s overcapacity is creating instability at home and abroad | George Magnus
China’s astounding technological success in mass-producing quality electric vehicles (EVs) sits alongside a serious flaw in its industrial model: overcapacity. It has the capacity to produce about three times as many units as it can sell at home. The consequences so far have included widespread price cutting, large losses, misallocation of capital, and surging low-cost EV exports leading to trade conflict. The bigger problem, though, is that EVs are just a part of a broader overcapacity problem involving a myriad of sectors and products. At home, Chinese overcapacity lies at…
China’s cyber-abuse scandal: is the government unwilling to crack down on exploitation of women online?
When Ming* found a hidden camera in her bedroom, she prayed for a reasonable explanation, wondering whether her boyfriend had placed it there to record memories of their “happy life” together. But hope quickly turned to horror. Ming’s boyfriend had been secretly taking sexually exploitative photos of not just Ming and her female friends, but also of other women in other locations, then using AI technology to generate pornographic images of them. After Ming confronted him, he “begged for mercy” but became angry when she refused to forgive him, Ming…
Video shows rare protests in China over beating of schoolgirl by three teenagers
A large protest erupted in the south-western Chinese city of Jiangyou, videos on social media have shown, after the beating of a young girl by three other teenagers caused public outrage. Protests are rare in China, where opposition to the ruling Communist party and anything seen as a threat to civil order is swiftly quashed. But bullying in the country’s ultra-competitive education system has touched a public nerve, with a high-profile killing last year prompting national debate over how the law deals with juvenile offenders. On Monday, police said two…
China warns EV makers to stop price-cutting to protect the economy
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…