China Banks Trim Deposit Rates Again to Shore Up Profitability
Several major Chinese banks have cut their deposit rates in the latest efforts to reduce funding costs and preserve their shrinking profitability.
Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and China Merchants Bank Co. have trimmed rates across tenors on Tuesday with those on one and two-year fixed deposits falling by 15 basis points, according to updates on their mobile apps. Interest rates on three and five-year deposits were slashed by 25 basis points.
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Forbes
23 minutes ago
- Forbes
Fusion Energy May Be The Key To World Hegemony
What would it take for the United States to lose its hegemony to a rising power like China? Right now, America appears to be ahead economically and militarily. However, there is a stark difference between America's national strategy (insofar as one exists) and China's. The US under President Trump calls for regression. It seeks to restore a manufacturing economy that peaked in the 1950s—like an elderly man trying to restore hair where it hasn't grown for decades. It is doubling down on domestic oil, gas and coal. Through tariffs, disparagement of NATO and aggression towards allies like Canada and Denmark, the administration has alienated partners that long supported a US-led world order. China, meanwhile, has a tremendous lead in developing the economy of the future. It has a near monopoly on rare earth minerals, which are needed for electronics, renewable energy systems, defense technologies and more. China leads in solar, wind and batteries, the energy systems growing at the fastest rate. It is ahead in electric vehicles, industrial robotics and drones as well. It probably has achieved parity in artificial intelligence and may surpass the US soon. If China were to take Taiwan, it would control the global market for advanced chip manufacturing. In the background, but probably most importantly, China may be on track to commercialize fusion energy before the US or its disgruntled allies. Unlike the US, China has no domestic energy industry with vocal lobbyists (and purchasable politicians) to slow progress. It is funding fusion as a national strategy while private fusion companies in the West are at the mercy of investors that, for the most part, chase low risk and quick returns. Fusion promises cheap, plentiful, baseload energy without carbon emissions. AI, data centers and industrial robotics powered by fusion would produce goods and services at much lower costs than value chains dependent on fossil-fired electricity. Militaries built on swarms of small, cheap, electronic drones and robots—powered by small, distributed fusion facilities deep underground, safe from attack—would have an edge over competitors using large, expensive, petroleum-powered vehicles with vulnerable supply chains. I cannot overstate the ramifications of China developing fusion first. As an analogy, imagine if Japan and Germany had uncovered vast reserves of oil at home in the 1920s. American and Soviet oil gave the Allies a strategic advantage over the Axis powers. Had the situation been reversed, World War II could have ended differently. While private fusion companies in the West have raised about $8 billion total, China is investing at least $1.5 annually into fusion projects—double what the US government spends. Japanese and German investments in fusion don't even come close. Canada, for the record, has no fusion funding strategy. Moreover, the government of British Columbia, home of industry leader General Fusion, seems not to understand the value of this crown asset.* On all fronts nuclear, China is leaping ahead. In April, its scientists added fresh fuel to an operational thorium molten salt reactor—a first. The thorium reserves found in Inner Mongolia, an autonomous region of China, could theoretically meet Chinese energy demand for thousands of years. The kicker: this reactor design originated in the US. As project lead Xu Hongjie put it, 'The US left its research publicly available, waiting for the right successor. We were that successor." Moreover, in January, China's Experimental Advanced Superconducting Tokamak (EAST) sustained a fusion reaction for 1,066 seconds, setting a new record. Its Burning Plasma Experimental Superconducting Tokamak (BEST) fusion reactor could come online by 2027 and is expected to produce five times the amount of energy it consumes. When BEST announces this milestone, Western fusion companies may be announcing that they've run out of funding. To China, fusion is not a startup project—it's a matter of national interest and security. Its scientists are patenting more fusion-related technologies than any other single country and graduating more doctorates in fusion-related fields. And because China is the top refiner and exporter of the critical minerals needed in fusion reactors (e.g., for magnets), no external force is going to slow their progress. In the meantime, China has a cheap gas station next door—Russia—supplying all the fossil fuels China could need in exchange for support in its war with Ukraine. That support includes critical minerals needed by Russian arms manufacturers. Is fusion energy, along with other Chinese-dominated technologies, enough to end US hegemony? In 1988, historian Paul Kennedy published The Rise and Fall of the Great Powers, a book that tried to explain the relative success (and failure) of powerful states. According to Kennedy, their rise and fall '…shows a very significant correlation over the longer term between productive and revenue-raising capacities on the one hand and military strength on the other.' Essentially, states must balance economic prosperity with strategy. Technological breakthroughs are vital to both. Innovation creates wealth, which enables the state to invest in defense and win wars. While underinvestment in defense leaves the state vulnerable to other powers, overextension and overspending on defense can run an economy into the ground, leaving it unable to sustain a strong military. Now, picture a great power—China—with a military to rival the US and fusion reactors that provide virtually unlimited energy. Imagine the clout China would have in establishing ports, military bases and consumer markets around the world if it could license that fusion technology. A China that exceeds the US in energy, industry, intelligence, mobility and defense is positioned to usurp it. Of course, China could bungle its advantage. Authoritarian regimes have a habit of mismanaging internal dissent, falsifying reality and making preventable mistakes. The rise of China is inevitable, but the self-inflicted decline of the US and its allies isn't. Rather, it's a choice reflecting how societies invest their resources and envision their future. *Disclosure: The author is an investor in General Fusion and sits on its board of directors.
Yahoo
an hour ago
- Yahoo
US-China Trade Talks Lift Oil Prices
ICE Brent is poised to close the week above $66 as trade optimism lifts sentiment, while stubborn geopolitical tensions and shifting wildfire risks keep supply concerns alive. June 6th, 2025 ICE Brent futures are set to close this week above $66 per barrel, a more than 3% weekly gain after markets were buoyed by the prospect of US-China trade talks all the while derailed US-Iran and Russia-Ukraine negotiations have kept geopolitical risk premia intact. Supply risks from Canada's wildfires seem to be subsiding after Alberta saw some rain earlier in the week, however, they might reappear again on forecasts of upcoming June heatwaves. No Nuclear Deal Means More Iran Sanctions. As US-Iran nuclear negotiations seemingly hit a roadblock after Tehran rejected the idea of transferring its inventory of enriched uranium, the US Department of Treasury announced new sanctions on Iran, targeting 10 individuals and 27 commercial entities. Saudi Arabia Cuts Its July Prices. Saudi Aramco (TADAWUL:2222) slashed its July prices for Asian customers by $0.20 per barrel for lighter grades and by $0.10 per barrel for Arab Medium, back to May levels, citing healthy demand and low regional stocks, half the cut that analysts were expecting. Iraq Attacks Kurdish Government. The Iraqi Oil Ministry said that it holds the Kurdish Regional Government (KRG) legally responsible for the widespread smuggling of oil and refined products from Kurdistan, believed to be at least 150,000 b/d in volume, as Erbil defies orders from Baghdad. US and Japan to Iron Out US Steel Deal Concerns. Japan's largest steelmaker, Nippon Steel (TYO:5401) asked a US appeals court for an 8-day pause in litigation to give them more time to reach a final agreement to buy US Steel (NYSE:X) for $14.9 billion, as both sides believe they are closing in on the deal. Low Stocks Buoys Copper Futures. Copper soared to its highest in two months this week, with the three-month LME futures contract touching $9,810 per metric tonne on Thursday, as inventories in LME-registered warehouses fell to just 138,000 tonnes, halving since the beginning of this year. Clean Energy Investments Flying High, Still. According to the International Energy Agency, global energy investment will rise to a record $3.3 trillion this year, of which $2.2 trillion will come from clean energy technologies, including renewables, nuclear and energy storage, with solar being the biggest beneficiary. Silver Soars to Highest Since 2012. Spot silver prices surged past $36 per ounce this week, for the first time in 13 years, as the metal enters its fifth consecutive year of a market deficit on the back of strong industrial demand, further boosted by silver's safe haven appeal that lifted it by 24% in 2025 already. Brazil Will Start Drilling Big in Africa. Petrobras (NYSE:PBR), the state oil company of Brazil, stated it would make Africa its main region of exploration and investment outside of Brazil, with the government of Ivory Coast offering preferential rights to nine offshore blocks this week, to be followed by Nigeria, Angola and Namibia. Petronas Denies Rumours of Canada Exit. Malaysia's national oil company Petronas refuted claims that it would be looking to sell its 7 billion Canadian business, however signalled that it is intent to 'rightsize' its workforce there and cut around 10% of its workforce as part of a restructuring exercise. China Teapots Curb Their Appetite for Iranian Oil. Independent teapot refiners in China have slowed their purchases of Iranian crude, down by some 20% from the 1.6 million b/d average of Q1 2025, however, it is not sanctions but high asking prices (a discount of -$3 per barrel to Brent) that prompted the shift. US Rejects Ethane Loadings to China. US midstream giant Enterprise Products (NYSE:EPD) said that the US Commerce Department denied its requests to ship 2.2 million barrels of ethane in three loads to China, despite having requested an export licence right after receiving a May 23 letter from the BIS. Discounts For Russian Oil Narrow. Discounts for Russia's flagship Urals grade have narrowed to their lowest since the Russia-Ukraine war began as July-arrival cargoes are shown at a $2.25 per barrel discount to Brent on a delivered basis, partly due to flat prices behind the $60 per barrel price cap level. US LNG Flows Fall Before They Soar. US feedgas flows to the country's eight large-scale LNG export plants dipped to 13.8 BCf/d so far in June as Sabine Pass LNG is undergoing planned maintenance until June 22 and Plaquemines prepares for new commissioned units, capping next-day Henry Hub prices at $2.86 per mmBtu. By Tom Kool for More Top Reads From this article on
Bloomberg
an hour ago
- Bloomberg
Court Fight Over Trump Ending a Tariff Exemption Goes Forward
A court fight over President Donald Trump's decision to end a US policy that exempted small-value packages from China from tariffs is moving ahead over the administration's opposition. A federal judge on Thursday denied the US Justice Department's request to pause litigation over what's known as the 'de minimis' tariff exception while a broader fight over Trump's move to raise global tariffs on imported goods is pending. Amid that fight, the president's tariffs remain in effect.
