Latest news with #ChenZhiwu
South China Morning Post
7 days ago
- Business
- South China Morning Post
Will new US curbs on China's tech tests raise electronic prices for American consumers?
Washington's recent ban on Chinese labs deemed security risks over their testing of consumer electronics bound for the US has observers wondering about law enforcement while saying the ban may leave American consumers with fewer, more expensive choices. Analysts also say the impact on Chinese makers of phones, PCs and the like could be limited, even though Washington appears to be trying to curtail China, a country the US Federal Communications Commission calls an adversary. 'It is hard to determine where each component is tested, when so many things make up a smartphone,' said Chen Zhiwu, chair professor of finance at the University of Hong Kong. 'Some of them are designed and tested in South Korea, some in Japan, some in the US ... I don't know how you can enforce it.' With a unanimous 4-0 vote, the FCC finalised its new rules on May 22. In justifying the move, the government agency said it had found that Chinese labs – those recognised as having tested American-bound devices over the years – retain deep connections with the Communist Party and military. 'These labs provide a gateway into the US telecommunications infrastructure,' FCC chairman Brendan Carr said in a May 22 statement. 'It is not hard to imagine that an unreliable lab – one beholden to a foreign adversary – could sign off on insecure gear entering the US.'
South China Morning Post
10-05-2025
- Business
- South China Morning Post
US-China financial ties face growing strains as trust erodes amid trade tensions
In the first of a three-part series on financial decoupling between China and the US, experts say the economies of the world's two biggest countries are highly intertwined and pulling apart would inflict pain equally on both sides. Advertisement What a difference five years makes. When one of China's largest cloud services providers raised US$240 million from a stock offering last month, its underwriters had to contend with two rules that did not exist when Kingsoft Cloud Holdings listed in the US in May 2020. The first was the Outbound Investment Rule that came into effect on January 2 in the waning days of the Biden administration, imposing restrictions on American investments in China-linked companies on national security grounds. The second was the America First Investment Policy , announced by President Donald Trump on February 21, which further tightened Biden's rules. Together, they added another step to Kingsoft's fundraising in the US and Hong Kong. The rules apply to any Chinese company engaging in overseas securities financing that could potentially sell to American investors. 'Mutual trust between the two sides has significantly declined,' said Chen Zhiwu, chair professor of finance at the University of Hong Kong. 'Once trust is lost, financial relations are particularly vulnerable, as finance relies heavily on commitments across time. Without trust, there can be no sustainable finance.' The threat of delisting from US exchanges looms large on nearly 300 Chinese firms. Photo: EPA-EFE The world's two largest economies, long intertwined across sectors from trade to finance, have been driven further apart since Trump returned to the White House in January, imposing tariffs on America's trading partners and upending the global trade order. China has borne the brunt of Trump's tariffs , with goods from China penalised with levies of as much as 145 per cent.
South China Morning Post
14-04-2025
- Automotive
- South China Morning Post
For China's electronics firms, US tariff exemptions offer more confusion than relief
Washington's plans to exempt some electronic devices from its 125 per cent so-called 'reciprocal' tariffs has provided a glimpse of hope for Chinese suppliers serving major US multinationals such as Apple and Tesla, but the road ahead for China's vast electronics sector still appears tough, analysts and industry insiders say. Advertisement Many smaller Chinese electronics firms will not be covered by the exemptions – and the administration of US President Donald Trump is now adding further uncertainty by warning it plans to roll out new 'sectoral tariffs' targeting the industry. The latest moves have left many in China bewildered and frustrated as they search for a way forward amid the wild policy swings coming from across the Pacific. 'It's so arbitrary,' said Chen Zhiwu, a chair professor of finance at the University of Hong Kong. 'Who knows why they came out with this exemption list so quickly? Who knows how long the 145 per cent tariffs may hold?' The US announced late on Friday that it will exempt a series of electronic products from its sky-high tariffs targeting Chinese goods, including smartphones, computers, hard drives, memory chips and semiconductor manufacturing equipment. Advertisement The move appeared to be a recognition of China's indispensable role in the global supply chain for many hi-tech products, analysts said. China supplied over 70 per cent of the PC monitors and smartphones, and 66 per cent of the laptops imported into the US in 2024, according to figures from the US International Trade Commission.
South China Morning Post
19-03-2025
- Business
- South China Morning Post
Chinese tech hub Shenzhen sees exports slump over 16% as trade war fears rise
China's southern tech hub Shenzhen recorded a sharp decline in exports during the first two months of the year, with analysts pointing to rising geopolitical tensions and a high base effect. Advertisement Exports from enterprises in Shenzhen plunged 16.6 per cent year on year to 367.3 billion yuan (US$50.8 billion) in January and February, according to municipal customs data released on Tuesday – a stark contrast with the 2.3 per cent growth in exports recorded nationwide over that period. The slump was led by a 29.6 per cent drop in general trade, which accounts for the largest share of the city's exports. Export processing, where raw materials are imported for manufacturing and re-export, fell 5.5 per cent, while bonded logistics rose 19.7 per cent, Shenzhen customs data showed. The sharp slowdown in general trade is a sign that Shenzhen may already be feeling the effects of China's intensifying trade war with the United States , economists suggested. Chen Zhiwu, chair professor of finance at the University of Hong Kong, pointed out that general trade includes factories exporting high-value-added products such as consumer electronics and machinery – two industries that are highly concentrated in Shenzhen. Advertisement 'With escalating geopolitical tensions, other countries are likely to become increasingly cautious about accepting certain categories of goods from China, such as electronics, which could weigh on Shenzhen's exports,' Chen said.
