Latest news with #ChinaPolicy
Forbes
2 days ago
- Business
- Forbes
China Market Update: Stocks Celebrate Free Markets After Tariff Court Loss
CLN KraneShares Li Auto (LI US, 2015 HK) reported Q1 financial results after the Hong Kong close. According to management, Q1 is 'typically a seasonally slow period for auto sales'. Asian equities cheered the Court of International Trade's decision that President Trump's use of the International Emergency Economic Powers Act of 1977 was not legal. Japan, Hong Kong, and South Korea outperformed, Taiwan and the Philippines underperformed, and Indonesia was closed for Ascension Day, a major Christian holiday commemorating Jesus Christ's ascension into heaven. The Trump Administration is appealing the decision and could implement tariffs under Section 301 of the Trade Act of 1974, as he did in his first term. It does highlight the ability to challenge DC in the courts, as we saw with TikTok. We'll enjoy the moment while it lasts, though one would hope 1600 Pennsylvania Avenue notices the strong market response. The Financial Times, which clearly receives Trump 'leaks' over the Wall Street Journal, reported 'the US Department of Commerce had told so-called electronic design automation groups – which include Cadence, Synopsys and Siemens Eda – to stop supplying their technology to China' according to 'several people familiar with the move'. Cadence fell by 10.67%, destroying $9.411B of investor capital based on their market cap decline, while Synopsys fell by 9.64%, destroying $7.381B of investor capital. The Administration's foreign student visa ban has evolved into a China student visa ban based on comments from Secretary of State Rubio. All pressure points are being applied to China trade negotiations, though President Trump's June 14th and President Xi's June 15 birthdays are coming, which many have speculated would result in a meeting. Hong Kong growth stocks, other than electric vehicles and hybrids, which continue to face competition concerns, responded with a rip in response led by Meituan, which gained +6.62% on strong liquor sales at the start of the 618 e-commerce event, Tencent, which gained +0.89%, and Alibaba, which gained +2.07%. Meanwhile, Xiaomi fell -0.10%, CATL fell -1.09%, and BYD fell -0.25%. gained +4.19% on a partnership with popular app provider Xiao Hong Shu, commonly known as Little Red Book. Zhongan Online P&C Insurance +31.56% bringing recent gains to over +70% following Hong Kong passing a stablecoin Bill as the company is 'Hong Kong's first digital bank to provide reserve-banking service for stablecoin issuers' according to Bloomberg. As one of their largest ten shareholders, we'll take it! Again, this proves how hard it is to pick the winners. Healthcare and the Apple ecosystem stocks Sunny Optical and AAC Technologies ripped higher on the tariff news by +4.54% and +3.11%, respectively, while Wuxi Biologics gained +10.04%, and CSPC Pharmaceuticals +11.73% after strong Q1 results. XPeng bucked the downward trend for EV stocks, gaining +5.17% after releasing a new autonomous driving feature. The tariff news did something the government has not been able to accomplish: raise the Mainland markets! Technology and growth stocks led the way higher versus value plays, as banks slipped. The Hang Seng Index is well above its Liberation Day Gap, Shanghai is just above it, Hang Seng Tech, and Shenzhen closed right at it. Hopefully, a little positive momentum allows for another push higher. A Mainland media source reported that fifty cities announced home purchase subsidies, including Hefei, Taizhou, Jiangsu, Foshan, Lanzhou, and Wuhan. What is interesting is that several cities are providing subsidies for families with two or three children. In Wuhan, families with two children receive a discount of RMB 60,000 and those with three children a discount of RMB 120,000. An incentive to have more kids while addressing the housing crisis. Two birds, one stone! Interesting, right?! Random thought: If the US government implemented tariffs due to the national crisis caused by the trade deficit, shouldn't there be a similar response to the US government's budget deficit? Live Webinar Join us Friday, May 30, at 11 am EDT for: Innovation In Hedged Equity - With Hedgeye's CEO Keith McCullough Please click here to register New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares
South China Morning Post
4 days ago
- General
- South China Morning Post
Will Trump's China policy become more unpredictable after national security shake-up?
Donald Trump 's shake-up of the US National Security Council may be a sign he is increasingly relying on his instinct over expert advice, potentially increasing the unpredictability in Washington's approach to China, diplomatic observers have said. The shake-up could also be 'bad news' for Taiwan , which may find it harder to speak to key people in the White House, they added. The White House dismissed around 100 staff from the council last week – many from the China team – as part of Trump's wider overhaul of the federal government. The NSC swelled to over 300 staff under Joe Biden, but Trump's eventual goal is to reduce it to 50. Earlier this month national security adviser Mike Waltz was removed from his post after sharing classified information through the messaging app Signal and reportedly disagreeing with Trump over some aspects of foreign policy. Alex Wong, another known China hawk and former deputy national security adviser, has also been reassigned to another role, according to The Washington Post.
Times
22-05-2025
- Politics
- Times
Watch: US embassy likens China to antisocial neighbour living in flats
Singapore and China have reacted angrily to an American social media video that compares Beijing's policies in the South China Sea to an antisocial neighbour who clutters the corridors of blocks of flats. In an unusual attempt at 'outreach', the US embassy in Singapore posted an elaborate video showing bicycles, pot plants and other possessions crammed into a landing in a typical modern apartment block in the city. 'When we live together, it's important to respect each other's space,' the voiceover, by a young woman with a Singaporean accent, says. 'So imagine coming home one day and finding this. Does this remind you of anything else?' With appropriate imagery of warships and extensive maps, the woman goes on to claim that China's attempts to claim
South China Morning Post
10-05-2025
- Business
- South China Morning Post
As EU scrutinises US trade deal with Britain, China is the ‘elephant in the room'
European officials are studying a trade deal announced between the United States and Britain on Thursday for signs of how US President Donald Trump may cajole them into adopting tougher policies on China. Advertisement Sources from the EU and its member states said the text showed that Trump wanted to ensure America's allies would work to cut Beijing out of important supply chains, namely steel and pharmaceuticals. China is not named in the agreement, but it is alluded to throughout. 'The language in this agreement on alignment with the US on forced labour, data security, economic security, and investment bans can only be read as China being the elephant in the room,' said Sam Goodman, senior policy director at the China Strategic Risks Institute, a British think tank. Britain agreed to 'promptly meet US requirements on the security of the supply chains of steel and aluminium products intended for export to the United States and on the nature of ownership of relevant production facilities', the text read, in what observers saw to be references to Chinese ownership in the industry. The document seeks to bind Britain to 'ensuring the security of supply chains, using appropriate measures, of products intended for export to the United States' for sectors that are subject to Section 232 investigations now or at future points. Such an investigation is currently under way in the pharmaceutical sector. 01:00 Trump justifies 'China tariffs' as US effort to curb 'greatest job theft in the world' Trump justifies 'China tariffs' as US effort to curb 'greatest job theft in the world' Henry Gao, a professor specialising in international trade at Singapore Management University, suggested that the deal's China focus would be a running theme as countries around the world scrambled to avoid tariffs.
Yahoo
30-04-2025
- Business
- Yahoo
China ramps up GM corn planting, but state controls, patchy trials keep industry guessing
By Mei Mei Chu and Ella Cao BEIJING (Reuters) -China will plant four to five times more genetically modified (GM) corn this year than last, analysts and executives say, building momentum in a rollout that has been slowed by tight state controls, public scepticism, and mixed trial outcomes. After decades of caution, the world's top importer of corn and soybeans has in the past two years ramped up approvals of several GM seed varieties, touting biotech cultivation, or GM technology as a way to boost food security. China's GM corn planting area is on track to increase to between 40 million and 50 million mu (3.3 million hectares) this year from roughly 10 million mu in 2024, according to CITICS Research and three seed industry insiders, all of whom spoke on condition of anonymity due to the sensitivity of the matter in the country. While not directly tied to the U.S.-Sino trade war, the push to grow more GM corn could reduce China's need for imports, giving Beijing a new lever in its tariff battle with President Donald Trump. The U.S. last year supplied 15% of China's corn imports. Even with the increase in plantings, GM corn would still only account for 7% of China's total corn acreage, compared with over 90% in agricultural heavyweights such as the United States or Brazil. China could quickly reach similar levels by embracing GM technology, however Beijing has tended towards caution in the face of ingrained scepticism from consumers and farmers. The government tightly manages seed sales and planting through controls that industry executives say make planning difficult and that have left domestic seed companies sitting on a glut of seeds. "Market adoption hinges on two key factors: demonstrated yield and cost benefits for farmers, and Beijing's ability to align commercial rollout with persistent public scepticism," said Matthew Nicol, senior analyst at research group China Policy. DISAPPOINTING TRIALS China imports over 100 million metric tons of corn and soybeans each year, mostly GM varieties for animal feed, predominantly from Brazil and the U.S., while cultivating non-GM crops locally for food consumption. Crops genetically modified for higher yields or resistance to drought and pests could boost yields by 6-13%, according to estimates from analysts and one seed official. However, several recent GMO trials resulted in lower yields, disappointing some farmers already sceptical about the technology, according to the three sources familiar with the rollout, putting progress at risk. Some regions where first-generation GM corn trials were planted during 2022-2023 saw 10-20% yield declines, the sources said. The problems arose from seeds only partially suited to local conditions, or rushed to market without enough backcross breeding - where a hybrid plant is crossed with a parent plant to develop desired traits, the three industry sources said. The results of those trials have not been made public. China's Ministry of Agriculture and Rural Affairs did not reply to a request for comment. "If seed firms fail to improve agronomic performance yields, even in trial conditions, Beijing's GM strategy could face a credibility issue, prolonging adoption timelines," Nicol said. Some farmers seeking higher yields, meanwhile, have turned to illegal GM seeds or conventional hybrid seeds, two of the sources said. "The prevalence of illegal GM corn in the northeast, as reported by industry insiders ... underscores the latent demand for advanced traits," Nicol added. The agriculture ministry this month called for provinces to crack down on illegal production and sale of GM seeds. As GM seed planting moves from small pilot plots to large-scale planting, yields could initially fall as farmers cannot devote as much time to individual plants, said Even Rogers Pay, an agriculture analyst at Trivium China. It will take time to adapt to new varieties, she added. "Regulators will hit the brakes on that plan if any significant issues arise," Pay said. "But assuming the new varieties continue to show an advantage over what was getting planted before, it's fair to expect that acreage will continue to expand. The proverbial genie is not going back into the bottle."
