China Is Buying Appliances and iPhones. What Happens When the Subsidies Stop?
Photos and videos of her toddler were quickly eating up her phone's storage. One of her children's teachers asked her to download various apps, again straining the limits of her device. But the factor that ultimately brought her into the store was a government trade-in program aimed at stimulating stubbornly sluggish consumer spending in China.
Confronting a trade war with the United States, China's government has poured $42 billion this year into a consumer trade-in program, double last year's amount. The aim was to jolt a much-needed surge in spending at a precarious moment for the economy by subsidizing discounts for a wide variety of consumer goods, from washing machines to electric vehicles.
The program has proved so successful that several municipalities have suspended or curtailed the program in recent weeks to prevent the money from running out prematurely. In May, retail sales grew a surprising 6.4 percent, exceeding economists' expectations, spurred by robust demand for smartphones and home appliances.
'We want to shear wool from the sheep,' Ms. Zhan said, using a popular Chinese idiom for seizing an opportunity. She had already taken advantage of the program to buy an energy-efficient air-conditioner and other home appliances at discounts of up to 20 percent. 'If we can upgrade everything at once when there's a good deal, we'll do it,' she said.
Want all of The Times? Subscribe.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
After Plummeting Over $1 Trillion in Value, This Super Artificial Intelligence (AI) Stock Is Mounting a Major Comeback, With Analysts Predicting Gains of Up to 400%
Key Points Nvidia stock took a nosedive earlier this year thanks to concerns over tariffs and competition in China. These fears have subsided over the last couple of months, and positive investor sentiment has fueled Nvidia stock to new highs. Some on Wall Street think the Nvidia train can keep moving, potentially reaching a $20 trillion valuation over the next five years. 10 stocks we like better than Nvidia › For a few years now, the artificial intelligence (AI) movement has largely hinged on the performance of a single company: Nvidia (NASDAQ: NVDA). Sure, if Microsoft or Amazon posted strong results from their respective cloud computing platforms or if Tesla managed to hype investors up over the prospects of self-driving robotaxis or humanoid robots, the technology sector might see a fleeting upward movement. At the end of the day, however, the focus seemed to eventually return to Nvidia -- with analysts obsessing over how demand for the company's chips and data center services were trending. During the first half of the year, Nvidia's ship was caught in an epic storm. Investors started to question the company's long-growth prospects -- inspiring prolonged periods of panic-selling in the process. All told, Nvidia's market cap dropped by more than $1 trillion. But now, with a market value north of $4 trillion, Nvidia has reclaimed its position as the most valuable company on the planet. Even better? Some on Wall Street are calling for further gains of up to 400%. Let's explore the tailwinds supporting Nvidia's long-term growth narrative and detail why Wall Street sees such massive upside for the king of the chip realm. One Wall Street analyst is calling for a $10 trillion valuation for Nvidia One of the most bullish Nvidia analysts on Wall Street is the I/O Fund's Beth Kindig. Kindig suggested that Nvidia could reach a $10 trillion market cap by 2030 -- implying 140% upside from current levels. Let's explore the main catalysts supporting Kindig's forecast. According to management from Microsoft, Amazon, and Alphabet, roughly $260 billion will be spent in 2025 alone on AI infrastructure. On top of that, Meta Platforms is expected to spend roughly $70 billion on capital expenditures this year -- nearly double what it spent in 2024. Lastly, Oracle is beginning to make significant headway in infrastructure services -- allowing companies to rent Nvidia GPUs from their cloud-based data center platform. From a macro perspective, rising capex from the cloud hyperscalers bodes well for chip demand. Kindig takes these secular tailwinds one step further, suggesting that competition from Intel and Advanced Micro Devices does not pose much of a threat to Nvidia's dominance. While it's hard to know how vendor preferences could change over the next several years, current industry research trends suggest that Kindig might be right -- underscored by Nvidia's rising market share in the AI accelerator industry. The area of Kindig's analysis that I think is currently overlooked the most revolves around Nvidia's software architecture, called CUDA. Since CUDA is integrated tightly with Nvidia's hardware, developers essentially become locked into the company's ecosystem. Not only does this lead to customer stickiness, but it opens the door for Nvidia to be at the forefront of more sophisticated, evolving AI applications in areas such as robotics and autonomous driving. What about $20 trillion? Former management consulting executive Phil Panaro is even more bullish than Kindig. By 2030, Panaro thinks Nvidia's share price could reach $800 -- implying roughly a $20 trillion market cap. Panaro cites opportunities across Web3 development and evolving use cases around how enterprises and governments leverage AI to generate more efficiency and cost savings as the main pillars supporting Nvidia's upside. While these trends could eventually drive significant demand for Nvidia's data center services, tech adoption within the government tends to move slowly. Meanwhile, Web3 remains an emerging concept that could take far longer to mature than Panaro is assuming. Is Nvidia stock a buy right now? Nvidia stock has been mounting an epic comeback over the last couple of months. This valuation expansion can be easily seen through the dynamics of the company's rising forward price-to-earnings (P/E) multiple. Nevertheless, Nvidia's forward P/E of 40 is still well below levels seen earlier this year. Trying to model Nvidia's peak valuation is an exercise in false precision. The bigger takeaway is that analysts on Wall Street are not only calling for significant upside in the stock, but they have outlined the foundation for Nvidia's long-term growth. The important theme here is that Nvidia has opportunities well beyond selling chips -- many of which have yet to make meaningful contributions to the business. I see Nvidia stock as a no-brainer. Investors with a long-run time horizon might consider scooping shares up at current prices and plan to hold on for years to come. Should you buy stock in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Intel, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. After Plummeting Over $1 Trillion in Value, This Super Artificial Intelligence (AI) Stock Is Mounting a Major Comeback, With Analysts Predicting Gains of Up to 400% was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
19 minutes ago
- Miami Herald
USCIS ends key parole benefit, says immigration fees will rise ‘soon'
After eliminating several immigration programs and benefits established by the previous administration under Joe Biden, the government of Donald Trump has decided to end another key aid for those seeking to regularize their immigration status in the United States. An update from U.S. Citizenship and Immigration Services (USCIS) also warns that new fees will 'soon' be implemented for certain immigration benefit applications. The decision regarding one of the most commonly used forms by parole recipients went into effect on Thursday, July 17, 2025. What benefit was eliminated by USCIS? USCIS released a new edition of Form G-1055, the Fee Schedule. In this edition, it eliminates the eligibility for a fee waiver for Form I-131, Application for Travel Document, Parole Documents and Arrival/Departure Records, for immigrants applying for parole under the following categories: ▪ Initial Request for Arrival/Departure Record for Parole In Place (PIP), for noncitizens currently in the United States. ▪ Re-parole Requests for individuals who had previously received a period of parole under the PIP program. Read more: 'A privilege, not a right': Trump administration puts green card holders on notice From now now, those submitting these applications will have to pay the current fee of $630, as stated in the updated G-1055 document. Requirements for obtaining PIP vary by case, since the U.S. grants different types of temporary stay permits, ranging from family members of U.S. military personnel to individuals who qualify for humanitarian reasons. In 2024, the Biden administration proposed expanding parole in place to undocumented immigrants married to U.S. citizens who met certain requirements, such as having lived in the country for a minimum number of years. An estimated 500,000 people could have benefited from that measure, but a federal court in Texas blocked the process, known as the Keeping Families Together (KFT) initiative. USCIS announces increases to immigration fees On July 11, USCIS announced that it 'will soon begin charging new fees for certain immigration benefit requests.' 'We will provide details on the implementation of these fee changes in the coming days,' the agency noted, just before updating the parole in place form. These measures are part of the reforms promoted by President Trump as part of his 'One Big Beautiful Bill' budget plan, which was approved by the Senate. This legislation proposes sweeping changes to the immigration system, including: ▪ Stricter enforcement rules for immigration laws ▪ New restrictions on social benefits such as Medicaid or food stamps (SNAP) ▪ Increases in fees for essential immigration procedures, such as permanent residency, TPS and asylum applications.
Yahoo
an hour ago
- Yahoo
Top economist drops 6-word verdict on Trump tariffs, inflation
Top economist drops 6-word verdict on Trump tariffs, inflation originally appeared on TheStreet. Inflation is ticking higher, and President Donald Trump's tariffs are back in the spotlight. Recent data points to a marked shift in key consumer categories, with some prices rising quicker than forecasted. 💵💰💰💵 As the debates get hotter over trade policy and wage trends, one major economist points to subtle patterns emerging in the numbers. Although investors look for clarity on the Fed's interest rate cuts, the real story may be brewing beneath the surface. What this economist just said about where things are headed raises quite a few eyebrows, to say the least. Tariffs are now showing up in inflation data The inflation engine has kicked into high gear, and tariffs are throwing fuel on the fire. A glance at the June inflation report shows the consumer price index (CPI) climbing to 2.7% year-over-year from 2.4% in May, the worst reading in four months. Core inflation rose to 2.9%. Moreover, heavily tariffed goods like appliances, furniture, and toys are leading the charge. That's what we call textbook "tariff pass-through," where import costs are trickling right into price tags. But that's only part of the markets have been flashing warnings as well, with five-year breakeven rates breaching the 2.5% mark. That's Mr. Market betting the pain isn't over. And it's not just goods. Services inflation, making up roughly 60% of CPI, hasn't surged yet, but the signs are building. Labor-intensive sectors, including health care, education, and hospitality, are also facing major cost pressures, especially as immigration restrictions and deportation policy drive up wages. On top of that, the June report also showed CPI rose 0.3% month-over-month, up from 0.1% in May. Core CPI ticked up 0.2%, another sign that price gains are broadening, not fading. At the same time, growth is slowing. That's setting the stage for a worrying stagflation scenario. That's essentially high inflation paired with economic stagnation. Also, GDP growth in 2025 could be cut by 50% from last year's pace, while the unemployment rate starts creeping up. The Fed's caught in the middle of all this mess, with inflation too hot to cut rates, but growth may be too weak to sit tight much longer. More News: Rigetti shakes up quantum computing with bold advance Elon Musk moves xAI, Grok onto Palantir turf Luxury carmaker fires shot at Tesla in robotaxi wars Against this backdrop, the odds of a July cut have tanked to 2.6%, and even September looks tricky. Tariffs, once a tool to help domestic manufacturing, are now an undeniable inflation lever. Economist warns tariffs are fueling inflation surge 'We have really only had the take-off stage.' That's the six-word verdict from Apollo's chief economist Torsten Sløk on where U.S. inflation is headed. Sløk feels the worst impacts of President Trump's tariffs still lie ahead. Prices, he warns, will continue to rise until inflation peaks later this year, possibly around November or December. For now, inflation is already moving quickly, as discussed inflation is clearly accelerating as well, especially in tariff-heavy categories. Sløk also says services inflation will be the next shoe to drop. Mass deportations and tighter immigration rules constrict the labor pool, pushing wages up. Naturally, that leads to costlier services, and those price hikes haven't fully arrived yet. Sløk also flagged a broader risk of stagflation — the toxic mix of high inflation and weak growth. He already sees the early signs emerging: GDP growth in 2025 could be cut in half, while inflation stays near 3%. Unemployment, he adds, may begin to creep up as businesses buckle under the pressure. That scenario leaves the Federal Reserve stuck in the mud. Sløk doesn't expect rate cuts any time soon. Also, the Fed needs to see the broader impact of tariffs and the inflation peak before making any move. For now, rate policy seems mostly frozen. Inflation is rising, while growth is economist drops 6-word verdict on Trump tariffs, inflation first appeared on TheStreet on Jul 19, 2025 This story was originally reported by TheStreet on Jul 19, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
