Latest news with #Politburo
Fast Company
3 minutes ago
- Business
- Fast Company
China promises to help companies hit by tariffs after inconclusive trade talks
Trucks loaded with container move through a container terminal port in Shanghai, China, Wednesday, July 30, 2025. [Photo: Chinatopix via AP] BY Listen to this Article More info 0:00 / 4:09 China 's top leaders have pledged to help companies slammed by higher U.S. tariffs but held back on major moves after trade talks with the U.S. this week kept businesses and planners in limbo. At their summer economic planning meeting, the powerful Politburo of the ruling Communist Party pledged to stabilize foreign trade and investment. 'We must assist foreign trade enterprises that have been severely impacted, strengthen financing support, and promote the integrated development of domestic and foreign trade,' the official Xinhua News Agency said in reporting the closed door meeting. It mentioned export tax rebates and free trade pilot zones but gave no other specifics. The inconclusive outcome of two days of trade talks in Stockholm, Sweden, leaves open the question of higher tariffs on Chinese exports to the United States. Chinese Vice Premier He Lifeng said the two sides had agreed to work on extending a deadline for higher tariffs. The U.S. side said the extension was discussed, but not decided. U.S. Treasury Secretary Scott Bessent told reporters after the talks that President Donald Trump would decide whether to extend the Aug. 12 deadline for reaching an agreement or to let tariffs that have been paused for 90 days to 'boomerang' back to a higher level. 'We haven't given the sign-off,' Bessent said, though he emphasized that the talks had been 'very constructive.' China remains one of the biggest challenges for the Trump administration after it has struck deals over elevated tariff rates with other key trading partners — including Britain, Japan and the European Union. Many analysts had expected that the Stockholm talks would result in an extension of current tariff levels, which currently stand at a U.S. tariff of 30% on Chinese goods and a Chinese tariff of 10% on U.S. products, far lower than the triple-digit percentage rates raised in April. The truce in the tariffs war to allow time for talks, agreed on in early May to allow time for negotiations, allowed exporters and other traders to ramp up shipments in hopes of beating any higher tariffs that might follow. The meeting headed by Chinese leader Xi Jinping mostly reiterated Beijing's priorities for the year, including a need to 'unleash domestic demand' which has lagged, leading to a surge of exports by industries unable to find growth at home. It also stressed the need to promote jobs and prevent a 'large scale relapse into poverty.' The economy 'has demonstrated strong vitality and resilience,' the Xinhua report said. But it acknowledged many risks and challenges. That includes reining in brutal competition that has led to damaging price wars among automakers and some other manufacturers and managing excess capacity in some industries, it said. China's economy expanded at a 5.2% annual pace in April-June, slowing slightly from the previous quarter. But analysts have said actual growth may have been significantly slower. Even with the hiatus in higher tariffs, companies are feeling a pinch. Industrial profits in China fell 1.8% in the first half of the year and 4.3% in June, according to data released earlier this week. It's unclear what level of tariffs might eventually be imposed on Chinese exports to the United States. Chinese Foreign Ministry spokesman Guo Jiakun said Thursday that Beijing hopes the U.S. side would follow through on the 'important consensus' reached between Trump and Xi in a phone call to promote stable relations between the world's two largest economies. But Guo reiterated China's stance on its U.S. objections to its purchases of oil and gas from Russia, which Bessent raised during the talks in Stockholm, threatening more tariffs. 'China will take reasonable measures to ensure energy security in accordance with its national interests,' Guo said. 'There are no winners in a tariff war. Coercion and pressure will not solve the problem. China will resolutely safeguard its sovereignty, security and development interests.' —Elaine Kurtenbach, AP business writer The early-rate deadline for Fast Company's Most Innovative Companies Awards is Friday, September 5, at 11:59 p.m. PT. Apply today.
Hindustan Times
5 hours ago
- Business
- Hindustan Times
China Politburo Holds off on Further Stimulus
Chinese leaders signaled they would refrain from rolling out more major stimulus for now, as authorities pivot to addressing excess capacity in the economy. Instead of announcing more policy support to bolster growth, the ruling Communist Party's Politburo, China's top policymaking body, pledged Wednesday to better execute policies that are already in place, according to a readout by state-run Xinhua News Agency. Chinese leaders hinted that they are ready to act should growth falter, as they acknowledged rising uncertainty without mentioning ongoing trade tensions with the U.S. Policymakers said they will double down on efforts to boost domestic demand with plans to expand support to the services sector, on top of the consumer goods trade-in program. China's export sector has come under pressure from President Trump's push to ratchet up U.S. tariffs, though outbound shipments have held up relatively well. The Politburo meeting maintained a cautious policy stance, reiterating macroeconomic guidance offered in April but didn't include new support for housing—signaling limited appetite for fresh stimulus despite fading property momentum, said Louise Loo, head of Asia economics at Oxford Economics. Chinese policymakers also reiterated their intention to curb excess capacity in some key industries that economists say exacerbate deflationary pressures. Over the past month, Chinese authorities have repeatedly warned against 'disorderly' competition that has eaten into businesses' profit margins, stoking speculation that a new wave of supply-side reform could be in the pipeline to reflate the economy. Chinese policymakers promised to step up financing support for struggling exporters and prevent local government debt risks from further spreading. Officials also said they will seek to promote a more attractive and inclusive domestic capital market. The Chinese Communist Party will hold its next key conclave in October to discuss the country's 15th five-year plan covering the 2026-2030 period. Economists widely expect Beijing to focus on enhancing economic resilience in the next five-year plan by boosting technological self-reliance and high-end manufacturing in preparation for a prolonged rivalry with Washington. Write to Singapore Editors at singaporeeditors@
Yahoo
5 hours ago
- Business
- Yahoo
World shares are mixed after China-US talks end without a trade deal
BANGKOK (AP) — World shares were mixed on Wednesday after the U.S. and China ended their latest round of trade talks without a deal. The latest data showed Europe's economy barely grew in the April-June quarter as frantic earlier efforts to ship goods ahead of new U.S. tariffs went into reverse and Germany's economy contracted. The outlook for coming months is mediocre given the 15% tariff imposed on European goods in the U.S. under a EU-U.S. trade deal announced Sunday. The higher tariff will burden European exports with higher costs to either be passed on to U.S. consumers or swallowed in the form of lower profits. Germany's DAX rose 0.2% to 24,274.40, while the CAC 40 in Paris gained 0.6% to 7,907.33. Britain's FTSE 100 shed 0.3% to 9,114.09. The future for the S&P 500 gained nearly 0.1% while that for the Dow Jones Industrial Average was barely changed. Beijing's top trade official said China and the United States agreed during two days of talks in Stockholm, Sweden, to work on extending an Aug. 12 deadline for imposing higher tariffs on each other. The U.S. side said an extension was discussed, but not decided on. Treasury Secretary Scott Bessent said President Donald Trump would make that call. If there is no extension, tariffs could 'boomerang' back to higher levels, he said. China's powerful Politburo met Wednesday and promised help for companies hit by trade shocks, but held back on any specific large government spending commitments. 'It did leave the door open to more support being introduced in future, but the urgency around stimulus appears to have diminished as trade tensions have eased,' Julian Evans-Pritchard of Capital Economics said in a report. A Friday deadline is looming for many of Trump's proposed tariffs on other countries. Several highly anticipated economic reports are also on the way, including the latest monthly update on the job market. 'Markets had been floating on a cloud of trade optimism — first Japan, then the EU — but the sugar high is wearing off. Now, with U.S.-China talks dragging on in Stockholm, there's a growing sense that the momentum is stalling,' Stephen Innes of SPI Asset Management said in a commentary. Hong Kong's Hang Seng index shed 1.4% to 25,176.93, while the Shanghai Composite index gained 0.2% to 3,615.72. Tokyo's Nikkei 225 index fell less than 0.1% to 40,654.70. Gains for electronics companies were offset by losses for major exporters like Toyota Motor Corp. and Honda Motor Co. Australia's S&P/ASX 200 climbed 0.6% to 8,756.40 and in South Korea, the Kospi gained 0.7% to 3,254,47. Taiwan's Taiex rose 1.1%. In India, the Sensex added 0.2%. On Tuesday, U.S. stock indexes edged back from their record levels as a busy week for Wall Street picked up momentum. The S&P 500 fell 0.3% and the Dow lost 0.5%. The Nasdaq composite was down 0.4%. Treasury yields sank as the Federal Reserve began a two-day meeting on interest rates. Despite pressure from President Donald Trump for lower rates, which would give the economy a boost, the widespread expectation is that the Fed will wait for more data about how Trump's tariffs are affecting inflation and the economy before making its next move. The U.S. economy appears to be slowing. One report Tuesday said that U.S. employers were advertising fewer job openings at the end of June than a month before, though still more than economists expected. A separate report said confidence rose among U.S. consumers, but a measure of their expectations about the near term remains below the level that typically signals a recession ahead. In other dealings early Wednesday, U.S. benchmark crude oil shed 57 cents to $68.64 per barrel, while Brent crude, the international standard, gave up 58 cents to $71.10 per barrel. The dollar fell to 148.20 Japanese yen from 148.48 yen. The euro slipped to $1.1542 from $1.1546. 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
Reuters
6 hours ago
- Business
- Reuters
China's leaders vow support for economy, crackdown on disorderly competition
BEIJING, July 30 (Reuters) - China's top leaders have pledged to support an economy that is facing various risks, by managing what is viewed as disorderly competition and beefing up capacity cuts in key industries in the second half of the year. The official news agency Xinhua said on Wednesday that leaders have signalled they will rein in price wars among producers, amid growing expectations that Beijing may be about to start a new round of factory capacity cuts in a long-awaited but challenging campaign against deflation. Xinhua cited a summary of the proceedings of a meeting of China's Politburo, a top decision-making body of the ruling Communist Party whose July gathering sets the economic course for the rest of the year. It said that in the second half China will keep policy steady with "flexibility and foresight", looking to stabilise employment, companies, the market, and expectations. Analysts said policymakers may feel less urgency to introduce new stimulus measures, as stronger than expected economic data and a continued tariff truce with Washington allow greater focus on supply-side measures to combat overcapacity and deflation. "There is a stronger emphasis on recognising potential risks from demand-supply imbalance," said Gary Ng, senior economist at Natixis. "The government is also more willing to take measures to battle deflationary pressure and overcapacity in the manufacturing sector. However, the stress has not pushed policymakers to commit to more immediate stimulus, as they only keep the options open if needed." Separately, state media quoted President Xi Jinping as saying at a symposium that China should effectively boost consumption and break the cycle of "involution," a term widely used in China to describe a situation where intense competition among companies leads to diminishing returns, and even losses. China will continue to pursue a more proactive fiscal policy and an "appropriately loose" monetary policy, the summary showed, but unlike the April meeting made no mention of interest rates or reserve requirement ratio cuts. Top leaders also called for the use of structural monetary policy tools to provide stronger support for technological innovation, boost consumption, aid small firms, and stabilise foreign trade. The world's second-largest economy grew 5.2% in the second quarter, slightly ahead of expectations, but analysts say weak domestic demand and rising global trade risks may prompt policymakers to introduce further stimulus. China is targeting economic growth of around 5% in 2025. "Policymakers are taking a wait-and-see mode for now, but they will take action whenever the growth target is under threat," Larry Hu, chief China economist at Macquarie, said in a note. The 15th five-year period (2026–2030) will be crucial for China to achieve economic modernisation, as the country's development environment faces profound and complex changes, Xinhua reported. The leadership will hold a fourth plenum in October, according to Xinhua. Analysts expect the meeting will focus on discussions for the new five-year plan. Meanwhile the economy faces persistent deflationary pressures, as producer prices dropped for the 33rd straight month in June. A prolonged property downturn is also weighing on the economy despite policy support, while analysts expect the impact of a consumer goods trade-in scheme to fade in the coming months. "At present, China's economic performance still faces many risks and challenges," Xinhua quoted the Politburo as saying. The economy has been helped by a rush among exporters to capitalise on a tariff truce between Beijing and Washington. The two countries agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm aimed at defusing an escalating trade war. China will unleash the potential of domestic demand and take steps to boost consumption, Xinhua said, adding the issuance and use of government bonds would be accelerated, with more efficient usage. It will also promote technological innovation and speed the growth of emerging pillar industries that are globally competitive, while curbing disorderly competition. "Disorderly competition among enterprises must be governed according to laws and regulations," the summary read. "Capacity management in key industries should be advanced." Some analysts believe that stimulating consumer demand remains key to effectively fighting deflation.
Mint
6 hours ago
- Business
- Mint
China promises to help companies slammed by tariffs, as talks with US left in limbo
Bangkok, China's top leaders have pledged to help companies slammed by higher US tariffs but held back on major moves after trade talks with the US this week kept businesses and planners in limbo. At their summer economic planning meeting, the powerful Politburo of the ruling Communist Party pledged to stabilise foreign trade and investment. 'We must assist foreign trade enterprises that have been severely impacted, strengthen financing support, and promote the integrated development of domestic and foreign trade,' the official Xinhua News Agency said in reporting the closed door meeting. It mentioned export tax rebates and free trade pilot zones but gave no other specifics. The inconclusive outcome of two days of trade talks in Stockholm, Sweden, leaves open the question of higher tariffs on Chinese exports to the United States. Chinese Vice Premier He Lifeng said the two sides had agreed to work on extending a deadline for higher tariffs. The US side said the extension was discussed, but not decided. US Treasury Secretary Scott Bessent told reporters after the talks that President Donald Trump would decide whether to extend the Aug 12 deadline for reaching an agreement or to let tariffs that have been paused for 90 days to 'boomerang' back to a higher level. 'We haven't given the sign-off,' Bessent said, though he emphasised that the talks had been 'very constructive.' China remains one of the biggest challenges for the Trump administration after it has struck deals over elevated tariff rates with other key trading partners — including Britain, Japan and the European Union. Many analysts had expected that the Stockholm talks would result in an extension of current tariff levels, which currently stand at a US tariff of 30% on Chinese goods and a Chinese tariff of 10% on US products, far lower than the triple-digit percentage rates raised in April. The truce in the tariffs war to allow time for talks, agreed on in early May to allow time for negotiations, allowed exporters and other traders to ramp up shipments in hopes of beating any higher tariffs that might follow. The meeting headed by Chinese leader Xi Jinping mostly reiterated Beijing's priorities for the year, including a need to 'unleash domestic demand' which has lagged, leading to a surge of exports by industries unable to find growth at home. It also stressed the need to promote jobs and prevent a 'large scale relapse into poverty.' The economy 'has demonstrated strong vitality and resilience,' the Xinhua report said. But it acknowledged many risks and challenges. That includes reining in brutal competition that has led to damaging price wars among automakers and some other manufacturers and managing excess capacity in some industries, it said. China's economy expanded at a 5.2% annual pace in April-July, slowing slightly from the previous quarter. But analysts have said actual growth may have been significantly slower. Even with the hiatus in higher tariffs, companies are feeling a pinch. Industrial profits in China fell 1.8% in the first half of the year and 4.3% in June, according to data released earlier this week. It's unclear what level of tariffs might eventually be imposed on Chinese exports to the United States. Chinese Foreign Ministry spokesman Guo Jiakun said Thursday that Beijing hopes the U.S. side would follow through on the 'important consensus' reached between Trump and Xi in a phone call to promote stable relations between the world's two largest economies. But Guo reiterated China's stance on its US objections to its purchases of oil and gas from Russia, which Bessent raised during the talks in Stockholm, threatening more tariffs. 'China will take reasonable measures to ensure energy security in accordance with its national interests,' Guo said. 'There are no winners in a tariff war. Coercion and pressure will not solve the problem. China will resolutely safeguard its sovereignty, security and development interests.'
