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South China Morning Post
2 days ago
- Business
- South China Morning Post
China signals readiness on rare earth talks, approves more exports
China has approved some qualified rare earth export applications and is ready to deepen dialogue with nations over export controls, the Ministry of Commerce said as the strategic resource continued to take centre stage in Beijing's trade negotiations with the United States. 'We've observed growing global demand for medium and heavy rare earths in civilian sectors such as robotics and new energy vehicles, as these industries continue to expand,' the ministry said in a statement posted on its official website on Saturday. It added that, as 'a responsible major power', China had taken the legitimate civilian needs of other countries into account, approved qualified export applications in line with the law, and would continue strengthening its compliance review process. 'China is willing to enhance communication and dialogue with relevant countries on export controls in order to facilitate compliant trade,' the ministry said. Rare earths – a long-held ace for Beijing in its dealings with Washington – are at the heart of the China-US trade tug of war. Vice-Premier He Lifeng is expected to attend the first meeting of the US-China bilateral economic and trade consultation mechanism during his trip to London from Sunday to Friday. China, the world's largest producer of rare earths , accounts for around 70 per cent of global rare earth mining and around 90 per cent of the refining of the minerals. The minerals are essential for making consumer electronics, electric vehicles and hi-tech defence systems.
Yahoo
3 days ago
- Business
- Yahoo
China to send vice premier He Lifeng to Britain for US trade talks
SHANGHAI (Reuters) -China's foreign ministry said on Saturday that Chinese vice premier He Lifeng will visit the United Kingdom between June 8 and June 13. The first meeting of the China-U.S. economic and trade consultation mechanism will be held with the United States during this visit, the ministry said. He led the Chinese side in the first round of trade talks in May. President Donald Trump said on Friday that U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent Washington in the talks.
Forbes
14-05-2025
- Business
- Forbes
China's Percentage Of U.S. Trade Plummets To Lowest Level In 22 Years
China's trade with the United States has not been this low in the last 264 months. China's percentage of U.S. trade hit the lowest level in 22 years, according to my analysis of the latest U.S. Census Bureau data. And that was for the month of March – before President Trump's April 2 'Liberation Day,' which started the process that eventually sent U.S. tariffs on Chinese imports to 145%, essentially embargo territory. While those tariffs have been reduced dramatically in recent days, at least temporarily to 30%, they escalated quickly during the month of in April, with China's retaliation met by retaliation from the United States. In March, China accounted for 7.65% of all U.S. trade. The only other month lower in the last 264 months was in March of 2003, when the total was 7.40%. As recently as March of 2020, China accounted for 18.08% of U.S. trade, though that was at the onset of Covid-19, when China became the go-to source for masks, gloves and other supplies related to the pandemic. A more reliable historical perspective would be the second six months of 2017. From July through December, China accounted for more than 17% of U.S. trade, just prior to the onset of the tariffs Trump put in place during his first term in office. I wouldn't expect a reversal of the trend in April, when that data is released next month, since that's when the tariffs went skyward, and wouldn't' expect much of one in May, given the nature of trade between the two nations. Air cargo is much easier to adjust quickly, given the transport time. But most of China's trade with the United States is by ocean. By value, China's ocean cargo imports are worth more than twice that of air cargo. By tonnage, it is more than 99% of the total. If China accounts for less than 10% of U.S. trade by the time the May data is released, a strong possibility, it puts it on a path to finish with less than 10% of all U.S. trade for the first time since 2003 – the year of the current record monthly low. That current monthly record low could easily be broken when the April data is released next month. The more interesting question is how China is likely to respond. Given that the tariffs Trump put in place during his first term were not removed by President Joe Biden during his four years in office, and that Trump's second term doesn't run out for the better part of four years, will that lead to a further shift in final manufacturing or assembly to Vietnam, Taiwan, Japan and, to a lesser extent, Mexico as occurred during his first term? One thing the trade war with China has not done, however, is lower the U.S. trade deficit, one of the biggest irritants to Trump. The U.S. deficit – the value of imports over exports -- has increased seven of the last eight years, topping $1 trillion all four years of the Biden presidency. It looks like 2025 could be another record-setter. Through the first quarter of 2025, the U.S. deficit with the world was $425.49 billion. The 2024 total for the first quarter, which also set a record, was $248.24 billion. More troubling should be the percentage of U.S. trade that is an export, the "balance of trade." Over the years, the percentage of trade that is a U.S. export has changed only nominally, from 37 cents on the dollar in 2017 to about 41 cents more recently as exports increased more rapidly to 39 cents in 2024 as they increased a little less rapidly. Through the first quarter of this year, that figure dropped to 36 cents on the dollar.
South China Morning Post
13-05-2025
- Business
- South China Morning Post
‘Extreme stress': How the trade war caught one of China's richest provinces off guard
For figures involved in all aspects of China's trade - from exporters to government officials - the past 40 days have been a roller-coaster ride. The ups and downs of the country's tariff war with the United States – the rapid escalation of import duties in April only matched by Monday's 90-day rollback of most levies – have ended with a temporary ceasefire, but not all regions have emerged unscathed. As businesses lick their wounds and count their losses, one of China's richest provinces has been hit especially hard after years spent as a beneficiary of close trade ties with the US. Zhejiang – a coastal economic powerhouse and the country's second-largest exporter to the US – suffered acutely from the sky-high levies imposed by US President Donald Trump on Chinese goods in early April. The scars could remain for a long time, even if tariffs are no longer at the triple-digit levels seen before Chinese and US officials finished trade talks in Switzerland. There has been widespread angst as the province reels from the impact of the trade war, in what some observers called an 'extreme stress test'. But in the torrid weeks before the de-escalation, Zhejiang sought to 'Trump-proof' itself by guarding against the worst of the fallout. The extensive damage to the province's economy, the pain businesses endured and how officials reacted could offer valuable lessons, even as the prosperous region was pushed to its limits. 'There are regions slow to pivot away from the US and they are paying the price … Monday's deal could mean the last chance for businesses to change,' said Zhou Zheng, a senior analyst at China Macro Group, a consultancy firm headquartered in Zurich.
Yahoo
13-05-2025
- Business
- Yahoo
FTSE 100 LIVE: Stocks cautiously higher as UK job market weakens
The FTSE 100 (^FTSE) and European stocks moved cautiously higher in early trade on Tuesday. Traders in London are looking to new data on the UK jobs market, which showed this morning that pay growth cooled in the three months to March. The unemployment rate came in at 4.5% in January to March, which was up from 4.4% in the previous quarter. Cooling jobs market data paves the way for further Bank of England interest rate cuts. Trade is also front of minds. On Monday, markets cheered China's temporary trade deal with the US, which holds back planned tariffs on imports by 90 days. London's premier index rose 0.1% in early trade. Gambling giant Entain (ENT.L) was the top gainer, up 3.7%. The DAX (^GDAXI) rose 0.1% in Germany, meanwhile, and the CAC 40 (^FCHI) in Paris gained 0.2%. The pan-European STOXX 600 (^STXE) was 0.2% in the green. Over in the US, stock futures pulled back from their tariffs relief rally. Dow futures (YM=F) fell 0.2%, the S&P 500 (ES=F) looked set to open 0.3% lower and the Nasdaq (NQ=F) looked set for an open 0.4% lower. Traders will be on edge today ahead of US inflation data, which is set to show the early impact of Trump's trade war. Retailer Marks & Spencer (MKS.L) said that the dates of birth and contact details of some customers has been stolen, as it grapples with a recent cyber attack on its systems. Although some purchase data was taken, no usable card information or payment details were swiped, the company said. The news comes three weeks after a huge disruption to the store's systems. Online orders are still suspended. China has stopped a ban on deliveries of Boeing (BA) aircraft following a agreement between China and the US which put a pause on sky high import and export tariffs, according to a Bloomberg report. The report, which cited sources familiar, said officials in Beijing have said deliveries of the planes can resume. In April, Boeing returned three jets to the US after its Chinese delivery centre rejected them. China also said it would potentially look to sell dozens of aircraft due to the tariffs. Boeing stock was 1.9% higher in premarket trade following the report. US stock futures traded down after markets roared on Monday following the announcement of a deal between the US and China to dramatically reduce tariffs for 90 days. Futures attached to the Dow Jones Industrial Average (YM=F) inched 0.2% down, the tech-heavy Nasdaq 100 (NQ=F) slipped 0.4%, and the benchmark S&P 500 (ES=F) sunk 0.3%. The temporary agreement slashes US tariffs on Chinese imports to 30% from 145%, and Chinese tariffs on US goods to 10% from 125%, effective Wednesday. During the 90 day pause, the countries have said they will try to negotiate a more long-lasting trade deal. Progress between the two trading partners triggered a buying frenzy Monday, sending the indexes soaring and giving Big Tech stocks a sizable boost. Paige Tao, economist at PwC UK, said: Vicky McKeever writes: UK pay growth slowed in the three months to March, with the jobs market also showing signs of cooling, amid heightened economic uncertainty. Average regular earnings excluding bonuses rose 5.6% in the period on an annual basis, according to data from the Office for National Statistics (ONS). That was down from 5.9% in the three months to February, but still easily outstripped inflation, which fell to 2.6% in March. Annual growth in real terms — adjusted for inflation — fell to 1.8%, compared with 2.1% in the previous quarter. There were 761,000 job vacancies between February and April, according to estimates from the ONS, which was down 42,000 on the previous three months. This figure was 34,000 below the number of vacancies in January to March 2020. Early estimates showed that the number of payrolled employees fell by 33,000 in April on the month and declined by 106,000 on the year, following an decrease of 63,000 in the year to March. The unemployment rate came in at 4.5% in January to March, which was up from 4.4% in the previous quarter. Read more on Yahoo Finance UK This story dropped overnight: A new agreement with Britain's biggest pension funds is set to unlock up to £50bn of investment for UK private firms and major infrastructure projects, the government announced on Tuesday. The Treasury said that 17 workplace pension providers managing around 90% of active savers' defined contribution pensions will sign the Mansion House Accord at a roundtable in London with chancellor Rachel Reeves and minister for pensions Torsten Bell on Tuesday. Signatories, which include Aviva (AV.L), Aegon ( and Legal & General (LGEN.L), will pledge to invest 10% of their workplace pension portfolios in assets that boost the economy such as infrastructure, property and private equity by 2030. The Treasury said that at least 5% of these portfolios will be ringfenced for the UK, which is expected to release £25bn directly into the UK economy by the end of the decade. The Treasury said that the £50bn and £25bn cash estimates for unlocked investment are indicative and assume current private market investment levels stand at 3.5%, of which 40% is UK-based. In line with the accord, these would increase to 10% and 50% respectively by 2030. Read more on Yahoo Finance UK Hello from London. Lucy Harley-McKeown here, ready to bring you the markets and business news of the day. This morning we've already had data from the UK job market (more on that later). This morning the British Retail Consortium also published fresh data on sales. We're looking ahead to the US inflation reading at 1.30pm UK time. Key results for today come from Jaguar Land Rover maker Tata Motors ( Let's get to it. Retailer Marks & Spencer (MKS.L) said that the dates of birth and contact details of some customers has been stolen, as it grapples with a recent cyber attack on its systems. Although some purchase data was taken, no usable card information or payment details were swiped, the company said. The news comes three weeks after a huge disruption to the store's systems. Online orders are still suspended. China has stopped a ban on deliveries of Boeing (BA) aircraft following a agreement between China and the US which put a pause on sky high import and export tariffs, according to a Bloomberg report. The report, which cited sources familiar, said officials in Beijing have said deliveries of the planes can resume. In April, Boeing returned three jets to the US after its Chinese delivery centre rejected them. China also said it would potentially look to sell dozens of aircraft due to the tariffs. Boeing stock was 1.9% higher in premarket trade following the report. US stock futures traded down after markets roared on Monday following the announcement of a deal between the US and China to dramatically reduce tariffs for 90 days. Futures attached to the Dow Jones Industrial Average (YM=F) inched 0.2% down, the tech-heavy Nasdaq 100 (NQ=F) slipped 0.4%, and the benchmark S&P 500 (ES=F) sunk 0.3%. The temporary agreement slashes US tariffs on Chinese imports to 30% from 145%, and Chinese tariffs on US goods to 10% from 125%, effective Wednesday. During the 90 day pause, the countries have said they will try to negotiate a more long-lasting trade deal. Progress between the two trading partners triggered a buying frenzy Monday, sending the indexes soaring and giving Big Tech stocks a sizable boost. Paige Tao, economist at PwC UK, said: Vicky McKeever writes: UK pay growth slowed in the three months to March, with the jobs market also showing signs of cooling, amid heightened economic uncertainty. Average regular earnings excluding bonuses rose 5.6% in the period on an annual basis, according to data from the Office for National Statistics (ONS). That was down from 5.9% in the three months to February, but still easily outstripped inflation, which fell to 2.6% in March. Annual growth in real terms — adjusted for inflation — fell to 1.8%, compared with 2.1% in the previous quarter. There were 761,000 job vacancies between February and April, according to estimates from the ONS, which was down 42,000 on the previous three months. This figure was 34,000 below the number of vacancies in January to March 2020. Early estimates showed that the number of payrolled employees fell by 33,000 in April on the month and declined by 106,000 on the year, following an decrease of 63,000 in the year to March. The unemployment rate came in at 4.5% in January to March, which was up from 4.4% in the previous quarter. Read more on Yahoo Finance UK This story dropped overnight: A new agreement with Britain's biggest pension funds is set to unlock up to £50bn of investment for UK private firms and major infrastructure projects, the government announced on Tuesday. The Treasury said that 17 workplace pension providers managing around 90% of active savers' defined contribution pensions will sign the Mansion House Accord at a roundtable in London with chancellor Rachel Reeves and minister for pensions Torsten Bell on Tuesday. Signatories, which include Aviva (AV.L), Aegon ( and Legal & General (LGEN.L), will pledge to invest 10% of their workplace pension portfolios in assets that boost the economy such as infrastructure, property and private equity by 2030. The Treasury said that at least 5% of these portfolios will be ringfenced for the UK, which is expected to release £25bn directly into the UK economy by the end of the decade. The Treasury said that the £50bn and £25bn cash estimates for unlocked investment are indicative and assume current private market investment levels stand at 3.5%, of which 40% is UK-based. In line with the accord, these would increase to 10% and 50% respectively by 2030. Read more on Yahoo Finance UK Hello from London. Lucy Harley-McKeown here, ready to bring you the markets and business news of the day. This morning we've already had data from the UK job market (more on that later). This morning the British Retail Consortium also published fresh data on sales. We're looking ahead to the US inflation reading at 1.30pm UK time. Key results for today come from Jaguar Land Rover maker Tata Motors ( Let's get to it. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
