China shuts down a major lithium mine, triggering a surge in prices
In 2024, CATL controlled between 35% and 40% of the global market for batteries used in electric vehicles, supplying most Chinese automakers and many foreign manufacturers such as Tesla, Toyota and BMW. Lithium is not a rare earth element, but it is a strategic, very light metal, notably used in lithium-ion batteries that power smartphones, laptops and, crucially, electric vehicles. In just a few years, it has become a key metal in the global race toward the energy transition.
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Fashion Network
3 hours ago
- Fashion Network
Is anybody fighting back in this trade war?
By no means does the firm anticipate zero harm. Business confidence is down but not collapsing. Capital spending will be constrained. And while chances of recession are still high, a better outcome remains very plausible. This sort of guarded optimism — or qualified pessimism — is a break from the dark warnings. Christine Lagarde, head of the European Central Bank, told leaders to prepare for a worst-case scenario in which an antagonistic US drags the world into destructive economic conflict. The prime minister of Singapore, a city-state that thrived during the heyday of free trade, couldn't hide his dismay: Tariffs aren't the actions of friends, Lawrence Wong noted. His Canadian counterpart, Mark Carney, declared that relations with the US would be changed forever. Chinese President Xi Jinping has studiously matched American moves but also toned down his rhetoric and actions when appropriate. Washington and Beijing this week extended a pause on higher tariffs for 90 days, the latest in a series of suspensions. India, which has been the subject of some bullish projections as China's economy has slowed, is one of the few economies of significance that hasn't cut a deal with Trump. But Prime Minister Narendra Modi also hasn't gone measure for measure or shown a desire to get even with American businesses. Yes, there has been indignity and hurt feelings. The governor of the Reserve Bank of India dismissed Trump's claim that commerce was dead there. He touted India's contribution to global growth — about 18% compared to around 11% for the US — and insisted the local economy was doing well. This is in the ballpark, based on IMF projections. It also misses the point that in pure size, America dwarfs India. Brazil, a comer that struggles to make good on its potential, is also refusing to bend. President Luiz Inacio Lula da Silva loathes dependence on the US and wants to be treated as an equal. But Trump doesn't like a court case against Lula's predecessor for allegedly plotting a coup. Brazil is trying to develop an alternative to the dollar and places great store in commercial ties to the BRICS group of emerging economies. Many of those nations, and aspiring members of the bloc, have cut deals with Trump, or are likely to do so. Brazil will come to some arrangement. So has Trump got away with it? His aides reckoned that access to the American market is too lucrative to pass up, and they may have been right. It would also be naive to conclude there won't be any cost. The global economy has slowed but hasn't crashed, foreigners still purchase US Treasuries and it's a safe bet that the greenback will be at the centre of the financial system for years. But the nations humiliated won't forget this experience. Asia's economies will only get bigger and the siren call of greater integration with China will get louder. Trump's efforts to destroy the existing order may yet prove an own goal. Just not this year. Clayton, who became the top economic official at the State Department, believed that robust trade among the shattered nations of Western Europe was as important as physical rebuilding. The economic dislocation wrought by the conflagration had been underestimated; capitalism could revive the continent and prevent the political implosion of key countries. According to Benn Steil's book The Marshall Plan: Dawn of the Cold War, Clayton insisted that the US 'must run this show.' Trump's team brag about reconfiguring the system that grew from the ideals of the post-war era. The hubris may ultimately prove misplaced.
Euronews
21 hours ago
- Euronews
Is China finally turning the corner on its economic slump?
Three years after a property crisis of historic proportions, China is beginning to show tentative signs of recovery. But for the world's second-largest economy—long hailed as a global growth engine—the path forward remains fraught with uncertainty, as the scars of the real estate downturn continue to weigh heavily on sentiment, investment and consumption. Property sector remains the core weakness The most entrenched source of China's economic weakness remains its housing sector. New home prices across 70 major cities fell by 3.2% year-on-year in June 2025, marking a continuation of the downturn that began in 2022. Although the rate of decline eased slightly from the 3.5% drop recorded in May, it still underscores the sector's persistent fragility. 'It is hard to conclude that the sector is out of the woods,' said Helen Qiao, Chief Economist for China at Bank of America, in a recent report. 'We expect an 8–10% decline in new home sales and a 15–20% contraction in residential new starts this year—similar to the pace seen in 2023–24. The downcycle remains prolonged.' She added, 'If we look at the length and depth of the current cycle, the downcycle is certainly the most severe since the commercialisation of China's property market in the late-1990s.' The Chinese housing downturn has triggered a deflationary impulse across the broader economy, with consumer prices declining on a year-over-year basis for much of the past three years. China's real GDP has stabilised around 5% annually—far below the near-7% average posted in the five years preceding the pandemic. The gap with respect to the US economy has grown significantly since the pandemic. China's nominal GDP edged up from $18.2 trillion in 2021 to $18.7 trillion by the end of 2024. In the same period, the US economy surged from $23.7 trillion to $29.2 trillion. Stock market performance reflects this divergence. As of mid-August 2025, the Shanghai Composite is trading at the same level as in late 2021—having endured a near 30% drop in the interim. By contrast, the S&P 500 has gained 40% over the same period, fuelled by strong consumer demand and dominance in AI and tech innovation. The market capitalisation of China's seven largest companies stands at $2.4 trillion—far behind the $19.5 trillion valuation of the top seven US firms. Trade risks and geopolitical tensions linger While a full trade war has been temporarily averted following a double 90-day suspension of additional US tariffs, the environment remains tense. 'We see upside risks to the existing 10% of reciprocal tariff rate to China,' said Qiao. 'Keep in mind that China currently faces around 40% of effective tariffs.' She broke down the composition: '11% pre-existing rate from Trump's first term, 20% fentanyl tariffs, and 10% reciprocal tariffs.' A partial rollback of fentanyl-related tariffs remains possible, which could reduce the effective rate to 30–35%, a 5–10 percentage point reduction from current levels. However, uncertainty remains elevated. 'Any perception of one side failing to fully uphold its promise could trigger a renewed escalation in tensions,' Qiao warned. She also pointed to potential penalties from China's continued crude oil imports from Russia. On Wednesday, US Treasury Secretary Scott Bessent said in an interview that during the most recent G7 summit in Canada, leaders discussed the possibility of imposing 200% tariffs on China over its continued purchases of Russian crude oil—though the proposal did not receive support from European counterparts. Beijing is throwing cash to consumers: Will it work? In response to faltering domestic demand, Chinese policymakers launched two interest subsidy programmes in August 2025 aimed at stimulating household consumption and supporting service-sector businesses. These measures include a 1 percentage point fiscal subsidy for consumer loans taken between September 2025 and August 2026, and targeted subsidies for businesses in eight service industries. Bank of America's Qiao described the initiative as significant in scope: 'It is the first time the central government has offered interest subsidies for personal consumption loans.' However, she expressed reservations about its potential impact: 'The subsidy of 1% through borrowing costs will unlikely make a meaningful difference in the purchase decisions made by those who need to borrow to spend.' A long road to recovery While Beijing's efforts to stabilise the economy are becoming more targeted, the challenges are structural as much as cyclical. Sentiment remains fragile, and analysts are reluctant to declare a turning point. 'We believe this latest credit policy could help support the recovery of household credit demand from the current low levels,' said Qiao. 'That said, the size of the impact is still questionable.' For now, China's economic recovery remains tentative—caught between weak property fundamentals, cautious consumers, and an uncertain geopolitical environment.
AFP
a day ago
- AFP
Hong Kong billionaire targeted with baseless mansion sale claims
"Li Ka-shing is selling his old mansion worth HKD 5 billion ($637 million) in a complete withdrawal from Hong Kong!" reads an X post in simplified Chinese posted on July 28, 2025. It also shares a screenshot of a house's main gate along with the address 79 Deep Water Bay Road -- home of the Hong Kong billionaire -- on the website of real estate agency Centaline Property. Image Screenshot of the false post on X taken on August 13, 2025, with a red X added by AFP Similar posts also surfaced in Douyin, RedNote, Facebook, Threads and Reddit after Beijing stepped up scrutiny on Li's CK Hutchison over a deal involving the strategic Panama Canal. The firm in March proposed the sale of its global ports business -- including operations in the vital Central American waterway -- to a US-led consortium. The deal was seen as a political win for US President Donald Trump, who had vowed to "take back" the Panama Canal from alleged Chinese control (archived link). China has warned of legal consequences should parties proceed without clearance from Beijing, and CK Hutchison said in July it was looking to invite a Chinese "major strategic investor" to join discussions (archived link). But a spokesperson for Centaline told AFP on August 13, 2025 that the circulating screenshot only shows an introduction to the house, and is "not related to selling or leasing". She went on to say the claim that the house had been listed for sale on the website is "not true and is entirely fabricated". Keyword searches led to the house's page on the company's website, and it does not include an asking price as claimed in the false post (archived link). Image Screenshot of Centaline webpage, taken on August 14, 2025 The search results also directed to the property pages in other real estate platforms Spacious, Midland and Ricacorp, but none of them included any official announcement of the home's sale (archived here, here and here). Victor Li, the billionaire's eldest son, denied that his family home was being sold and described the online speculation as "fake". "We have never intended to sell the property at 79 Deep Water Bay Road. Certain online reports and posts on social media regarding the sale of the property at 79 Deep Water Bay Road are completely fabricated and unfounded," he said in a statement emailed by CK Asset -- CK Hutchison's sister company -- to AFP on August 4, 2025. Victor took over as chairman of CK Hutchison and CK Asset after his father retired as chairman of both companies in March 2018 (archived here, here, here and here). AFP has previously debunked misinformation about Li Ka-shing here and here.
