BYD sets India sales record on back of dealership expansion
SOUMYAJIT SAHA
August 14, 2025 17:20 JST
MUMBAI -- In Vijayawada, a midsize city in the southern Indian state of Andhra Pradesh, a senior manager for Chinese electric vehicle maker BYD's local franchise partner says he is seeing a steady shift in the behavior of customers visiting the local dealership.
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The Diplomat
2 hours ago
- The Diplomat
One Belt, One Road, One Chilean Headache
Chile's next president will have to decide how to handle growing Chinese investment in Chile's critical resources. On November 16, Chile will elect a new president who will lead the nation until 2030. Presidential candidates – including the Communist Party of Chile's Jeanette Jara representing the left-wing Unity for Chile coalition, and the incumbent, President José Antonio Kast, for the conservative Republican Party – will have to present policies tackling domestic issues such as dwindling birthrates and rising crime. But one of the most important foreign policy areas for this election will be China's growing investments in Chile's weakened critical mineral and transportation sector. Already, China controls approximately two-thirds of Chile's energy sector through mainly financial acquisitions of companies operating in the region. Also, as of 2023, China bought just under 40 percent of Chilean exports. The next largest export destination – the United States – was well behind, accounting for just 15 percent of Chile's total exports. As of 2024, Chile and China's bilateral trade was worth an estimated $37.8 billion. That year, Chile's exports to China were primarily made up of minerals – at $27.95 billion, representing almost 75 percent of total trade. Of these minerals, the most prominent is copper, with Chile exporting $5.5 billion worth of copper to China. Chile holds an estimated 23 percent of the world's reserves in copper, and as of 2024 produced 24 percent of the world's copper, signifying the importance of China as a stable buyer. In 2005, China's Minmetal Corporation signed a 50-50 joint venture with Codelco, Chile's state-owned copper producer, for $550 million. This venture would ensure China with 55,000 tons of copper for more than 15 years. In other projects not owned by China, Chinese banks have provided investment. In 2021, the Collahuasi mine signed a $1 billion syndicate loan from 17 banks, including three from China: the Bank of China, Industrial and Commercial Bank of China, and China Construction Bank. Together the three banks provided $71.43 million for the mine. Similarly, in 2021, the Bank of China also provided $38.11 million of a $571.6 million syndicate loan used for the expansion of the Mantoverde copper mine. Mantoverde – which is not owned by China – produces an estimated 120,000 tonnes of copper per year. Chile also plays a significant role in lithium mining. As of 2023, Chile was the world's second largest producer of lithium, accounting for 25 percent of global production. Here, too, Chinese firms have been actively investing. In 2018, Tianqi Lithium Corporation purchased 23.77 percent of the Chilean lithium mining company Sociedad Quimica y Minera de Chile (SQM) from the Canadian company Nutrien. Tianqi paid $4 billion for the shares and has since held the second-largest stake in SQM (Pampa Group is the largest shareholder, with 26 percent). An agreement signed in May 2024 gives SQM the responsibility of producing refined lithium in Salar de Atacama from 2025 to 2060. Furthermore, in 2023, China's Tsingshan Holding Group and BYD planned to invest $233.2 million setting up a lithium iron phosphate (LFP) plant, operational by May 2025. Chile hoped this project would produce 120,000 tons of LFP per year. However, in 2025, the Chinese partners withdrew from those plans for unknown reasons. Also, in 2025, BYD delayed plans for a lithium cathode plant worth $290 million, with the capacity of producing 50,000 tons of LFP per year. Observers think the project is likely to be canceled. Even with the recent issues involving lithium projects, China may have more opportunity to invest due to the weakened state of Chile's Codelco, the state-owned mining company that is a critical player in Chilean copper and lithium. As reported in December 2024, Codelco's debt has ballooned to over $20 billion with production hitting a historic 25-year low in 2022. Beyond the mining sector, China is having a significant – albeit indirect – impact on Chile's transportation sector. Chile's largest port, the Port of Valparaíso handles 11.5 million tons of cargo a year. In 2024, Valparaíso exported 31 percent of its cargo to Asia – primarily China. Chile has plans to expand the port, which is owned by the state company EMPORCHI, including adding cargo terminals, extending cruise terminals, and expanding the flow of cargo ships. The goal is for the port to maintain competitiveness with the region. And the competition is fierce following the inauguration of the Chinese-built Chancay port in Peru. Chancay's rise may cut into the traffic heading for Chilean ports like Valparaiso. The new 'Chancay Express' connects the Chilean ports of Lirquen and San Antonio to Peru's port. Essentially, the route allows for Chilean goods to be shipped to China via Peru's Pacific coast, reducing shipping times from 35 days to 23 and cutting costs by 30 percent. Unlike Chilean ports, Chancay can handle Ultra Large Container Vessels (ULCVs) which means it has a double advantage: it can handle much more cargo on top of having shorter travel time to Beijing. For Beijing, it is clear Chancay is a vital transit hub not just for Peru but for all of Latin America. In addition to the Chancay Express linking Chile to Peru, China has revitalized negotiation for a trans-oceanic railway that would carry cargo from Brazil to Chancay. China's economic activity in Chile is thus a double-edged sword. Chinese companies have been making unprecedented investments in Chile's critical resources, yet at the same time, China's actions in other parts of Latin America, particularly its promotion of Chancay port in Peru, could undercut Chile's economy. Chile's upcoming election will be crucial for the future of the country's economy – and its ties to China. Jeannette Jara has been surging dramatically after the recent primaries. She is polling at 26 percent, putting her on top at the moment, although Jara is closely followed by Kast at 22 percent. Of the many issues these two candidates face, ensuring the future of Chilean mining will be key for economic growth – especially with the bleeding assets of Codelco. Kast aims to open Codelco to private capital in the hopes of allowing boosting production and restoring revenue growth. His plan includes selling non-core assets to pay Codelco's debts while focusing on operational efficiency and not state revenue. Given China's track record of investing in Chile's natural resources, Chinese firms would likely be keen to take part in the bidding. On the other hand, Jara opposes the deal between Codelco and SQM, instead calling for a new public company to aid in developing lithium resources. Codelco is a copper-mining company, and Jara aims to create a new state-owned firm playing a similar role for lithium resources. That would have implications for China, given its minority stake in SQM. On foreign policy specifically, Jara has emphasized 'not wanting Chile subordinated to foreign government or external models' and emphasizes human rights. She has made no explicit statements about China in this regard. Instead, Jara noted that her foreign policy goal is diversification of trade and multilateralism, focusing on expanding ties with China, India, and Latin America. However, Kast, the incumbent president, has been strongly aligned with Western powers. He is particularly in sync with Trumpian positions such as removing Chile from the United Nations Human Rights Council and opposing immigration, LGBT rights, or any policies he views as 'communist.' With these very different individuals running for office, Chile is at a crossroads. While Chinese investment won't be top of mind for the average voter, the next president will determine the extent of China's influence in the country's economy.
Nikkei Asia
2 hours ago
- Nikkei Asia
Indonesia's Prabowo eyes 5.4% growth in 2026, to double free-meal spending
Economy Finance Minister Indrawati vows pursuit of tax compliance by 'shadow economy' Indonesian President Prabowo Subianto outlines his spending plans for next year during a speech at the parliament on Aug. 15, citing food security, health and defense as among key priorities. © Reuters ISMI DAMAYANTI and REZHA HADYAN August 15, 2025 23:19 JST JAKARTA -- Indonesian President Prabowo Subianto outlined Friday his budget plans for next year, including a 7% increase in government spending and a 5.4% growth target, putting more emphasis on his key priorities, including free meals and defense.
Nikkei Asia
3 hours ago
- Nikkei Asia
Dow scales record high on hopes of Fed rate cuts, trade deals
(Reuters) -- The Dow Jones Industrial Average hit an all-time intraday high on Friday, making it the last of the three major U.S. indexes to clinch a record in Wall Street's rally fueled by the prospect of a looser monetary policy, easing trade tensions and upbeat corporate earnings. The Dow surpassed the previous peak of 45,073.63 touched on December 4, helped by a jump in UnitedHealth Group shares after Warren Buffett's Berkshire Hathaway revealed a new investment in the health insurer. Counted among the oldest and most followed indexes, the Dow tracks the performance of 30 U.S.-listed large-cap stocks. The blue-chip index is price-weighted rather than market-cap-weighted, differentiating it from indexes such as the S&P 500, for which companies with larger market values carry the most weight. The Dow's gains have been propelled by a solid year-to-date performances from Wall Street bank Goldman Sachs, tech giant Microsoft and industrial equipment maker Caterpillar. Chip designer and AI champion Nvidia, which became the first publicly listed company to clinch $4 trillion in market capitalization, has also aided the Dow's rise. The stock has gained more than 30% this year. The S&P 500 and the Nasdaq Composite reached all-time highs late June, thanks to renewed AI enthusiasm, hopes of U.S. trade deals and rising bets on interest rate cuts, which helped drive a turnaround in U.S. stocks from a sharp rout earlier this year. The Dow, however, has lagged in reaching record highs, as limited exposure to AI names and the underperformance of companies such as UnitedHealth Group and Salesforce restricted its overall increase. The Dow has jumped more than 20% since hitting this year's lowest in April when U.S. President Donald Trump announced sweeping "reciprocal tariffs" to rebalance the global trade order in favor of the United States. After a series of U.S. trade agreements with the U.K., Japan, and the European Union, investors are certain that a worst-case global recession scenario can be avoided. Meanwhile, a weak labor market report for July prompted traders to increase their bets on an interest rate cut as early as September. Trump's moves to shake up the Federal Reserve leadership -- including an interim pick for a Fed governor post and an expanded search to replace Chair Jerome Powell next year with someone willing to lower interest rates -- have also added to rate cut bets.
