Latest news with #US-China
DW
12 minutes ago
- Business
- DW
China's economy grows 5.2% in Q2 despite US tariffs – DW – 07/15/2025
This year's first-half growth was boosted by government stimulus and a temporary pause in the US-China trade war, which allowed exporters rush out shipments ahead of new tariffs. China's economy grew 5.2% year-on-year in the second quarter of 2025 amid ongoing trade tensions with the United States, official data showed on Tuesday. The second quarter growth was slightly below the 5.4% pace in the first, but keeping on track to meet the government's full-year target of "around 5%." The first-half performance was supported by state stimulus and a pause in US-China trade war escalations that allowed exporters to rush out shipments ahead of potential tariff hikes. "China achieved growth above the official target of 5% in Q2 partly because of front loading of exports," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. Analysts, however, warn that the growth may not be sustainable. Weakened consumer confidence, falling prices, and a deepening property crisis continue to weigh on demand. "The real estate crisis remains a major medium-term drag on local government budgets," said Dan Wang, economist at the Eurasia Group. Investors, meanwhile, are bracing for a weaker second half even as additional stimulus are expected to be considered at the upcoming Politburo meeting in July. At the same time, according to economic research and consulting firm Prognos Institute, Chinese companies now account for 16% of global exports, double that of Germany, raising the stakes in an increasingly competitive global trade landscape. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Tensions are simmering between Washington and Beijing as the two nations clash over a range of issues, including Taiwan, emerging technologies and most importantly, trade. Escalating trade tensions, US President announced 145% tariffs on Chinese goods in April. However, negotiations between the two significant economies in May led to lowering of US tariffs to 30% for 90 days to allow for talks, while China also reduced its taxes on US goods from 125% to 10%. US-China competition is already substantially impacting global economy and politics. If the trade war between the two escalates once again, China might try to use the EU market to absorb Chinese production overcapacity. In turn, the US could also redefine goods manufactured in the EU through Chinese direct investment as Chinese products and demand higher levies from EU businesses. Meanwhile, as the US tightens trade restrictions with some Latin American countries, China is expanding its influence across South America.
Daily Tribune
an hour ago
- Business
- Daily Tribune
Markets shrug off Trump tariff threat against EU
China's exports rose more than expected in June, official data showed yesterday, after Washington and Beijing agreed a tentative deal to lower swingeing tariffs on each other. Data from the General Administration of Customs said exports climbed 5.8% year-onyear, topping the five percent forecast in a Bloomberg survey of economists. Imports rose 1.1%, higher the 0.3% gain predicted and marking the first growth this year. China's exports reached record highs in 2024 -- a lifeline to its slowing economy as pressures elsewhere mounted. Beijing's efforts to sustain growth have been hit by a bruising trade war with the United States, driven by President Donald Trump's sweeping tariffs, though the two de-escalated their spat with a framework for a deal at talks in London last month. Monday's customs figures showed Chinese exports to the United States surged 32.4% in June, having fallen the month before, according to an AFP calculation based on official data. "Growth in export values rebounded somewhat last month, helped by the US-China trade truce," Zichun Huang, China economist at Capital Economics, said. "But tariffs are likely to remain high and Chinese manufacturers face growing constraints on their ability to rapidly expand global market share by slashing prices," Huang said. "We therefore expect export growth to slow over the coming quarters, weighing on economic growth," she added. Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the figures showed Chinese firms were still "frontloading" exports to the United States -- accelerating shipments in anticipation of further tariffs to come.
Time of India
an hour ago
- Business
- Time of India
Jensen Huang wants US to lead AI development, confirms Nvidia chip sales resuming in China
Nvidia will soon restart the sale of its H20 AI accelerator chips in China, CEO Jensen Huang confirmed. The move comes after the US government assured Nvidia that licenses for these sales would now be granted, unlike earlier restrictions. Huang recently met US leaders, including former President Trump, to back America's AI leadership and job creation. After months of restrictions, this clearance marks a big win for Nvidia in China, one of its crucial markets. Huang believes civil AI models around the world should run on US technology to ensure America remains the global AI leader. His push aims to boost trust in the US tech stack while keeping economic ties with China open. Positive signals for business and US-China relations Huang's announcement is seen as a positive step for both Nvidia's business and the global AI supply chain. US restrictions had forced Nvidia to create special chips for China. Now, with the H20's return, China's tech platforms building AI tools will benefit. This Chinese startup just ended Nvidia's $3 trillion Trump banned Jensen Huang from working with made an even more powerful AI for only $5.6 every tech CEO is scrambling to copy their why: 🧵 Experts like Vey-Sern Ling from Union Bancaire Privee called this restart a 'positive' for the whole semiconductor sector. Even Nasdaq futures got a boost after the news broke, showing investor confidence. Nvidia's new chip and future plans Nvidia didn't just stop with the H20. Huang also introduced a new RTX PRO GPU, designed for digital twin AI in smart factories and logistics. This shows Nvidia's focus on both compliance and innovation as it continues to expand its chip business globally. By balancing US expectations and market demands in China, Nvidia looks set to strengthen its global AI leadership, just as the tech race intensifies.
Focus Malaysia
3 hours ago
- Business
- Focus Malaysia
E-commerce sites must rise to challenges of Malaysia ‘invaded' by cheap Chinese products'
IT IS inevitable that current global dynamics – particularly the escalating US-China trade war and the high US tariffs – are expected to trigger a surge of low-cost Chinese products been re-directed into Southeast Asian markets, including Malaysia. Towards this end, the Malaysian Micro Business Association (MAMBA) has called on e-commerce platforms to continue investing in infrastructure, tools and services that improve customer satisfaction such as faster delivery, reliable refund processes, better search functions and AI-powered product recommendations. 'We are already seeing cheap imports entering the market through new and existing e-commerce platforms targeting consumers in Malaysia, undercutting local sellers and threatening their long-term survival,' observed MAMBA's secretary-general Alvin Low Wei Yan. 'As this trend is likely to accelerate in the months ahead, we must prepare for it strategically.' Low farther expects the proposed improvements to make e-commerce platforms more attractive to buyers, able to increase traffic, hence in turn boost visibility and conversion rates for sellers. 'Good customer experience is not just a buyer issue -it's a seller issue too,' Low pointed out. 'When platforms are seen as trustworthy, convenient and efficient, everyone benefits. Sellers who operate on such platforms stand a better chance of building customer loyalty and driving repeat business.' On this note, Low stressed the importance for e-commerce platforms to independently fund major infrastructure and service upgrades – especially in areas like AI tools, logistics, fraud prevention and customer support – for long-term gain. 'Doing so alone is not only costly but unsustainable because it requires significant investment,' he cautioned. 'That's why it's critical for both the government and local sellers to support and collaborate with platforms that continue to place micro, small and medium enterprises (MSMEs) at the centre of their ecosystem. 'If platforms are unable to reinvest due to pricing pressure or policy uncertainty, the entire seller ecosystem will suffer in the long run.' According to data and analytics company GlobalData, the Malaysian e-commerce market is projected to grow at a compound annual growth rate (CAGR) of 8.5% between 2024 and 2028 to reach RM67.1 bil by 2028. This outlook underscores the long-term potential of the digital marketplace and the importance of staying competitive through reinvestment and innovation. Earlier, MAMBA called for a more balanced and constructive conversation surrounding recent fee structure adjustments by e-commerce platforms. While it understands the concerns raised by various quarters, MAMBA believes that this issue requires a holistic perspective – one that considers both the sustainability of digital platforms and the competitiveness of local MSMEs. 'We must avoid scare tactics and politicising important conversations that directly affect thousands of Malaysian sellers,' asserted Low. 'There needs to be room for discussion so that everyone – from sellers to shoppers to platforms – can win.' – July 15, 2025
DW
4 hours ago
- Business
- DW
EU walks trade tightrope as US-China rivalry intensifies – DW – 07/15/2025
Can the EU still trust the US after President Donald Trump's latest tariff threat? And can it risk closer ties with China? Last week, China's Foreign Minister Wang Yi held talks with US Secretary of State Marco Rubio on the sidelines of the ASEAN summit in Kuala Lumpur. The meeting between two top diplomats is especially noteworthy because Rubio has been officially sanctioned by Beijing. Before he was tapped by President Donald Trump to become US secretary of state, Rubio had served in the US Senate, where he was a member of the Congressional-Executive Commission on China. The commission is charged with monitoring human rights and the development of the rule of law in China, and submitting an annual report to the US president. As a member of this body, Rubio sharply criticized the Chinese government for suppressing the democracy movement in Hong Kong, and for drastically restricting civil rights in the western province of Xinjiang. Beijing lambasted what it saw as "interference in internal affairs" and placed Rubio on the sanctions list after the US government imposed punitive measures on Chinese politicians. The current US state secretary faced an entry ban and a freeze of any assets in China. Last Friday, the first face-to-face meeting between Rubio and Wang took place behind closed doors in Malaysia. Neither side revealed much about what was discussed but Chinese state media later reported that the talks were "positive, pragmatic and constructive." At the Saturday press conference, Wang gave a brief summary of the conclusions made: Maintain contacts, avoid misjudgment, manage differences and expand cooperation. However, he made no mention of whether Rubio would remain on Beijing's sanctions list. There is a "strong will" in both Washington and Beijing to organize a meeting between Trump and Chinese President Xi Jinping, Rubio said after the talks. No date has yet been agreed. While the US still remains the sole global superpower, the gap with China is narrowing. President Xi wants China to become a "strong, democratic, civilized, and harmonious socialist nation" by 2049, the centenary of the People's Republic. A study published by the consulting firm PricewaterhouseCoopers (PwC) at the start of 2025 projected that China would overtake the US and become the world's top economy over the next three decades. The US-China competition is already shaping the global economy and politics today, including trade wars, a global arms race and rising geopolitical tension. The US is now using its economic might to force all economically weaker countries to compromise on trade. On Saturday, Trump announced a 30% tariff on all imports from the EU from August 1. According to the DPA news agency, the decree will not apply to steel and aluminum. However, they are already subject to high tariffs. The US, for instance, imposes a 25% tariff on cars and car parts imported from the European Union and a 50% duty on steel and aluminum. The president of the European Commission Ursula von der Leyen promptly responded, saying that she would take "all necessary steps" to protect EU interests. At the same time, she said she is prepared to continue efforts to reach a mutually acceptable agreement with Washington. EU Trade Commissioner Maros Sefcovic was scheduled to hold talks with the US side on Monday. German businesses have sounded the alarm amid the latest crisis. The tariffs could damage "economic recovery and innovative strength," said Wolfgang Niedermark, member of the executive board of the Federation of German Industries (BDI). Confidence in international cooperation would also be affected, he added, noting that Germany, as an export-oriented nation, is just as dependent on free trade as China. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Against this backdrop, the question arises as to whom the EU can rely upon — on the US, an old ally which is now throwing obstacles in the way of globalization, or on the communist party-led China, which is now seeking closer ties with Europe and Germany despite ideological differences. Is a Trump-led US, like China, now seen seen as a "partner, competitor and rival" for Brussels? This is the question asked by China experts Paula Oliver Llorente and Miguel Otero-Iglesias in a new paper issued by Spanish think tank Elcano Royal Institute. The phrasing is borrowed from EU documents defining its relations with China, with the words also being included in the German government's China strategy in 2023. "Uncertainty has become the defining factor looming over the strategic positioning of the EU in the context of US-China rivalry," the two scholars claim. "For Germany, Trump's policies and the US-China conflict present historic challenges," said Claudia Wessling and Bernhard Bartsch, China experts at the Berlin-based MERICS think tank. They point out that the US administration under Donald Trump upended trans-Atlantic relations, shaking some long-held and deeply entrenched beliefs in Germany. At the same time, Germany also cooled its ties with China despite intensive trade and business links. Just last week, Germany's Foreign Office summoned China's ambassador after Berlin accused a Chinese warship of aiming a laser at a German aircraft on patrol in the Red Sea. The German plane was deployed as part of an EU-led operation to protect commercial ships from the Houthi militia operating out of Yemen. But China has disputed Germany's allegations, saying it was "totally inconsistent with the facts known by the Chinese side." The Chinese Ministry of Defense said the Chinese frigate in question was not in the Red Sea but in the Gulf of Aden at the time. If Germany manages to set aside all the differences with China and moves closer to Beijing, it would certainly anger Washington, which still binds together the European security architecture. Notably, Russia's ongoing war against Ukraine has brought the importance of US military presence in Europe into sharp focus. "Germany's new government (...) now faces unprecedented pressure to navigate in a geopolitical world amid an ongoing polarization of society at home," underlined Wessling and Bartsch. That being said, the EU and the US have substantially different threat perceptions of China, said Llorente and Otero-Iglesias. "The US is trying to fight a hegemonic competitor and an existential threat, while the EU is aiming to establish a balanced relation with a global player," they argued. Against this backdrop, the experts underlined, "the EU prefers to develop differentiated de-risking strategies to reduce critical dependencies in its economic relations with China." The German government's China Strategy, unveiled in 2023, indeed emphasized "de-risking," to reduce reliance on China. Recent years have also seen many German firms investing not only in China, but also in the US. However, many actors are now recognizing that these business strategies — such as further relocation to China and, increasingly, to the US — may ultimately run counter to the interests of the German economy, potentially leading to a crisis marked by declining exports and job losses, stressed Wessling und Bartsch. "Thus, the slogan 'derisking, but doing it right' could prove to be a challenging mandate for the new German government." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The EU-China summit will take place in Beijing at the end of July. Could this be a new start for Beijing and Brussels? The answer likely depends on Trump. His administration has already specified tariffs on the EU and its most important Asian allies, saying Washington will demand a 25% levy on imports from Japan and South Korea from August 1. The latest US plan for goods from China, however, has yet to be announced. If the trade war between the two escalates once again, China might try to use the EU market to absorb Chinese production overcapacity. In turn, the US could also redefine goods manufactured in the EU through Chinese direct investment as Chinese products and demand higher levies from EU businesses. All EU states must act together to reduce their external dependencies, the Spanish experts said. "Different Member States have different types of relations and dependencies with both the US and China, as well as individual interpretations of economic security and strategic autonomy," they pointed out. This "inherent heterogenous nature" of their trade ties leads to divergent foreign policy priorities, Llorente und Otero-Iglesias argued. Nevertheless, "partnerships are indispensable for the EU," they added. "China will have to, among other things, open its market to European businesses, and this needs concrete actions and not just promises."
