US Agriculture Secretary Brooke Rollins told lawmakers on Thursday that American dependence on China for food, fertiliser and other agricultural inputs poses an “existential” threat, framing food security as a national security issue while defending the White House’s reduced fiscal 2027 budget request. “If we need to rely on China for our food and our fertiliser and all the things that come with that, we will lose what we understand to be liberty and freedom in this country. That’s how important...
EU trade chief Maros Sefcovic has called for practical approaches and “meaningful discussion” to tackle the growing trade concerns between Brussels and Beijing, following his meeting with China’s chief international trade negotiator, Li Chenggang, on the sideline of a ministerial meeting at the Organisation for Economic Cooperation and Development (OECD) in Paris. Sefcovic opened his press conference on Thursday by stressing the urgency of crafting policy responses to the non-market practices...
The EU and China were due to hold talks to defuse escalating trade tensions after Europe voted last week to adopt a tough new approach. EU trade chief Maros Sefcovic was set to meet China’s top trade envoy, Li Chenggang, on the sidelines of an Organisation for Economic Co-operation and Development (OECD) meeting on Thursday, the South China Morning Post reported. Talks will focus on establishing a new platform to discuss trade and investment issues and will pave the way for Chinese Commerce...
China has rejected a recent OECD report that said its firms receive far higher government subsidies than international peers, calling the findings “one-sided and arbitrary” at a time when EU concerns over Beijing’s industrial policy are intensifying. “The report’s definition of ‘subsidies’ lacks a unified standard and statistical framework, and deviates from consensus under multilateral frameworks such as the World Trade Organization,” the Ministry of Commerce said in a statement on...
US Treasury Secretary Scott Bessent claimed on Wednesday that China is “very interested” in additional Boeing plane purchases, an issue the Trump administration plans to press when President Xi Jinping visits the United States in September. “They agreed to 200 aeroplanes during the visit. We will see if they commit to a larger number when Xi Jinping arrives in Washington,” Bessent said in his budget request testimony to the Senate Finance Committee. China’s commitment to buy 200 Boeing aircraft...
South Korea has emerged as a rare bright spot among East Asian economies trading with China, as booming demand for memory chips pushes its balance with its largest trading partner back into a surplus. The country’s trade position with China had strengthened steadily this year, swinging from a US$764 million deficit in December 2025 to a US$1.1 billion surplus in February, before widening further to US$3.8 billion in May, according to data from South Korea’s Ministry of Trade, Industry and...
When China broke out one of its “big guns” in last year’s trade war with the US – an array of export controls on rare earth elements – it helped spur a temporary truce in the pitched conflict between the two economic superpowers. After Beijing’s announcement, many around the world expressed shock at the size and scope of China’s response to Washington’s sky-high tariffs. But for Japan, a squeeze on rare earth shipments was not so novel a concept. In 2010, following the collision of a Chinese...
China’s Minister of Foreign Affairs Wang Yi said on Friday that Canada could surpass its goal of increasing exports to China by 50 per cent by 2030 during a meeting with Canada’s Foreign Minister Anita Anand. Wang said he thought Canada’s exports to China could increase by 100 per cent, building on momentum between the countries. “Canada is focused on growing our economy and diversifying our trading relationships,” Anand said during the meeting. “The Canada-China economic relationship is...
Major EU members offered qualified support for the bloc’s flagship industrial plans on Thursday in the first debate over a proposal that has deepened tensions with China. Germany, France, Italy, Spain, the Netherlands and Poland all accepted the broad parameters of the Industrial Accelerator Act (IAA), which would put strict conditions on investments into the union from China and other countries, even as they quibbled over red tape, timescales and how open the plan should be to non-EU...
The European Union’s executive arm is set to back a tougher line against Chinese imports at a key meeting on Friday as a flood of low-cost competition undermines local industries. Potential measures include requiring companies in key sectors to have at least three suppliers from two or more countries in a bid to pare reliance on China, the South China Morning Post reported. Industry commissioner Stephane Sejourne will back broader use of regulations designed to prevent foreign companies...
European Commission leaders are preparing to harden the EU’s economic stance towards China at a pivotal debate on Friday, opening the door to a new wave of trade and industrial measures later this year. Sources indicated that a majority – though not all – of the 27 commissioners, including President Ursula von der Leyen, are supportive of a more robust trade and industrial policy, amid rising fears of de-industrialisation, in what is now widely described in Brussels as the “China shock...
Asia bought the most Chinese EVs of any region, followed by Europe and Latin America, data compiled by Bloomberg shows.
Over the years, the consumption of Ilex paraguariensis – known as yerba mate in South America – has spread beyond the borders of Argentina, Uruguay and Brazil and is now gaining popularity in China. “Our exports have doubled since last year,” Juan Luis Lorenzo, a local producer involved in the direct exports of yerba mate to China, said. The increase in exports by Lorenzo’s cooperative reflects the broader rise in yerba mate exports from Argentina to China, which have increased by 88 per cent...
Twenty-six US semiconductor firms, from Qualcomm to Nvidia, saw their China revenue climb by an average of 20 per cent last year, despite trade tensions, according to a new analysis. The data, featured in the latest “Hurun Top 100 US Enterprises in China 2026” report released by the Hurun Research Institute on Monday, tracks the performance of 100 publicly listed American companies based on their revenue in China last year. Among the top 100 earners in China, 26 were from the semiconductor...
As the US and Europe push to reduce reliance on China, Beijing tightens control over supply chains.
China’s exports of rare earth permanent magnets to Japan slightly rebounded in April after slumping the previous month, but Japanese firms warn they are facing “severe” shortages as a diplomatic row between Beijing and Tokyo grinds on. Shipments of permanent magnets from China to Japan rose by 2.5 per cent in April compared with the previous month, according to Chinese customs data released on Wednesday. But the modest rise only partly offset the 17.3 per cent plunge recorded in March. The...
While China’s oil and gas imports from Gulf nations plunged in April amid the Strait of Hormuz crisis during the US-Israeli war on Iran, shipments from Russia have provided Beijing with a partial buffer for its growing economy. Russia’s crude shipments to China rose 11.3 per cent year on year to nearly 9 million tonnes in April, according to Chinese customs data released on Wednesday. But market conditions have also shifted. Much of the discount on Russian oil and gas – long a source of cheap...
With their domestic profits narrowing and production capacity expanding, China’s firms are continuing to widen their overseas footprints in search of new, more lucrative markets. In this series, we examine China Inc.’s next phase of “going global” and the complex, challenging international environment its companies have chosen to enter. Not long ago, plans were in motion to build an enormous battery factory in the Belgian countryside. If completed, it would have created an estimated 2,000 jobs...
Argentina is on the verge of settling its debt with China’s central bank, winding down a currency lifeline that kept the country afloat during years of financial turmoil and now sits at the centre of a geopolitical tug of war between Washington and Beijing. Government officials confirmed to Argentine outlet Todo Noticias on Sunday that the repayment of the activated portion of the swap will be completed by mid-2026. Central bank records published last week show Buenos Aires has repaid nearly 90...
Sparks flew in a Beijing conference room this week, as diplomats, officials and experts from Europe and China clashed over their deepening trade problems. Chinese speakers were accused of dismissing Europe’s long-standing complaints and ignoring the harsh economic reality of an increasingly lopsided trading relationship. EU diplomats were accused of “bullying”, while the bloc’s policies were billed as “protectionist” efforts to decouple from China. At the acrimonious event hosted by the European...
Neither the Chinese government nor Boeing issued statements confirming the purchase agreement.
Japan’s quest for rare earth self-sufficiency and its drive to decouple from Chinese supply chains have prompted the government to consider building a dedicated deep-sea mining vessel to recover minerals from the Pacific Ocean floor. Local media reported that the ruling Liberal Democratic Party’s special committee on ocean development will soon present a draft proposal to the Takaichi administration, calling for unspecified project funding. While the initiative will face technological and...
Washington and Beijing expected to extend trade truce, but analysts see only modest breakthrough in strained ties.
Kevin Warsh’s confirmation as the next chair of the United States Federal Reserve has fuelled debate over whether potential policy compromises with the administration of US President Donald Trump could undermine American financial credibility and inadvertently strengthen Chinese assets. The Senate confirmed Warsh as the 17th chair of the Fed on Wednesday in a 54-45 vote, mostly along bipartisan lines. He succeeds Jerome Powell, whose term expires on Friday, following a sustained pressure...
The G7 economists’ memo from March and the IMF’s April report on global imbalances arrived at the same prescription: China’s current account surplus is excessive and should be cut by boosting consumption. The diagnosis is wrong. The world economy, especially emerging markets and developing economies, benefits from China’s high saving. A current account surplus is the excess of national saving over domestic investment. The saving is not lost; it is exported abroad in the form of net capital...
We have put together stories from our coverage on electric and new energy vehicles from the past two weeks to help you stay informed. If you would like to see more of our reporting, please consider subscribing. 1. From Beijing to Berlin: Chinese EVs turn heads as brands eye European markets For German consumer Erik Böhme, a first visit to the Beijing auto show was an eye-opener – the world’s largest car exhibition showcased a vast array of electric vehicle (EV) brands, many already gaining...
From sanctions to rare earths, the economic rivalry between the US and China is intensifying.
German companies in China have grown more optimistic about the country’s economic outlook, even as the Iran war and persistent trade tensions continue to weigh on their operations, according to the German Chamber of Commerce in China. In a survey released on Tuesday, the chamber found that 37 per cent of respondents expected China’s economy to improve over the next six months. That was up 22 percentage points from last year, with only 17 per cent anticipating a deterioration – a sharp reversal...
History was made this Labour Day, as China’s southern Shenzhen Bay port cleared 24 tonnes of South African apples and central Hunan province processed 6,000 bottles of South African wine – the first time these goods had reached the Asian economic giant under a new zero-tariff arrangement. The duty-free access for African partners from May 1, which saw the 10 per cent tariff rate for apples removed, arrived as a lifeline for South African exporters looking to diversify away from increasingly...
Chinese Vice-Premier He Lifeng will travel to South Korea this week for trade talks with US Treasury Secretary Scott Bessent, both sides confirmed on Sunday, in the final round of negotiations before a summit between President Xi Jinping and US President Donald Trump in Beijing. The meeting is scheduled for May 12 and 13 in Seoul and comes days before Trump’s state visit to China on May 14 and 15. China’s Ministry of Commerce said He would lead a delegation to hold economic and trade...
China may finally have a chance to loosen the grip of deflation. Yet, the more important question is whether it can do so without making households feel poorer first. The latest producer price index (PPI), which measures the prices factories charge, brings that possibility back into serious debate. China’s March PPI rose by 0.5 per cent year on year, ending 41 months of decline; it was up 1 per cent from February. After years of weak prices, cautious household spending and squeezed corporate...
China’s export sector showed strong resilience last month, with the total value of outbound shipments hitting a monthly record even as the Strait of Hormuz crisis showed little sign of abating after driving up energy and shipping costs. The value of China’s exports rose in April by 14.1 per cent, year on year, to US$359.44 billion, according to data released by the General Administration of Customs on Saturday. The reading was above the 6.96 per cent growth forecast compiled by financial data...
US Trade Representative Jamieson Greer called for stability with Beijing days before US President Donald Trump’s closely watched trip to China, saying the US was not out to reshape the Chinese economy but to rebalance trade. The trade chief told Fox News on Friday that while the world’s two largest economies “always had a really robust trading relationship … it’s been wildly unbalanced with China exporting just vast amounts of goods to the United States and largely blocking a lot of US imports...
China’s rapid technological gains and aggressive pricing are making it increasingly difficult for South Korean firms to find profitable areas of industrial synergy with their Chinese counterparts, according to experts. Speakers at a recent forum in Beijing urged firms from both countries to pivot towards building more interdependent ecosystems in high-growth sectors such as batteries and artificial intelligence, while also calling for the advancement of negotiations towards an upgraded...
China’s rapidly growing low-altitude economy has reached a new milestone, with the first four domestically trained commercial airship pilots receiving their licenses – a step officials believe could help address a critical talent shortage in the sector. Issued by the Civil Aviation Administration of China (CAAC), the licenses “signify a breakthrough that addresses the vacuum”, the state-owned Aviation Industry Corporation of China (AVIC) said in a statement this week. AVIC said the achievement...
For decades, Hong Kong thrived as the world’s freest economy without five-year plans, while mainland China rose to become the world’s second largest economy through them. Now Hong Kong has the rare advantage of both: market dynamism and strategic direction. Harnessed through the collective wisdom of the people, this combination can deliver more than what the market or planning alone can achieve. Hong Kong is preparing its first five-year plan to dovetail with the national 15th five-year plan,...
Beijing’s tighter oversight of vicious price competition in the automotive sector is expected to increase borrowing pressure on mainland carmakers and accelerate the exit of weaker, debt-laden players amid softening consumer demand, according to S&P Global Ratings. The warning is likely to deepen bearish sentiment surrounding mainland China’s more than 100 car assemblers, many of which have been at the forefront of global electric vehicle (EV) technology and production. “Financially fragile...