Latest news with #Xinhua News Agency
The Independent
13 hours ago
- Business
- The Independent
China promises to help companies slammed by tariffs, as talks with the US left in limbo
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-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 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.'
NHK
4 days ago
- Business
- NHK
China proposes setting up global AI organization
China's government has proposed the establishment of an organization promoting global cooperation for the development of artificial intelligence. China's Premier Li Qiang presented the proposal in a speech at an AI conference that began in Shanghai on Saturday. The foreign ministry said Li stressed the need to strengthen coordination among countries to form a global AI governance framework and rules based on broad consensus, while maintaining the development and safety of the technology. While short on details, the state-run Xinhua News Agency reported that the government is considering establishing the organization's headquarters in Shanghai. The report also said China welcomes the active participation of other countries in preparing for the establishment of such an organization. Competition over AI development is heating up mainly between the United States and China. Observers suggest that Beijing aims to take the lead in laying the foundation for international rules.
Bloomberg
21-07-2025
- Business
- Bloomberg
China Moves Ahead With $167 Billion Tibet Mega-Dam Despite Risks
The massive economic stimulus and boost to clean power from a 1.2 trillion yuan ($167 billion) mega-dam in Tibet has proven alluring enough to Chinese leaders to outweigh concerns about potential damage to biodiversity and relations with India. Chinese Premier Li Qiang launched construction of the hydropower project on the lower reaches of the Yarlung Tsangpo river on Saturday, and unveiled the China Yajiang Group, a new company that will be charged with managing the dam's development, according to the official Xinhua News Agency.
Coin Geek
10-07-2025
- Business
- Coin Geek
ECB pushes ahead with digital euro amid stalled legislation
Getting your Trinity Audio player ready... European Central Bank (ECB) President Christine Lagarde has hinted again at the Bank's preference for launching its long-planned central bank digital currency (CBDC), the digital euro, to sit alongside cash. In a June 30 speech at the opening reception of the ECB Forum on Central Banking 2025, Lagarde spoke of uncertainty dominating the current narrative and the impact on inflation of uncontrollable events, such as tariffs and supply disruptions. In her speech, the ECB president said the Bank's strategy assessment has been an exercise in 'evolution, not revolution' and that 'even as the world changes around us, we know our purpose. And we will do whatever is necessary to deliver on it – ensuring price stability for the people of Europe.' While she didn't specifically mention the digital euro, the language was reminiscent of how Lagarde has previously spoken of the ECB's mooted CBDC. Earlier in June, in an interview with Xinhua News Agency, Lagarde again spoke of uncertainty— her favorite catchphrase of the moment —but also gave the strongest indication that the ECB is hoping to get the necessary support from the European Parliament for the digital euro. When asked about the ECB's exploration of a digital euro and whether it could cooperate in the future with the People's Bank of China (PBOC)—which launched its own CBDC, the digital yuan, in 2022—Lagarde said: 'Both the PBOC [People's Bank of China] and the ECB are working on a digital currency. China was ahead; it started earlier. We started six years ago, and we are getting to the point where, if the legislature supports the proposal, we should be ready to launch.' She added that the ECB wants 'to make sure that we have a European offer that is available, so that within the entire euro area there is a means of payment and a solid currency that can help you transact both online, peer-to-peer, business-to-business, and that's the purpose of the digital euro.' Lagarde also explained the reasons behind the ECB's decision to plough ahead with the preparations for a CBDC: 'Because of client demand, to put it very simply. Because many Europeans – not all, but many – like to pay electronically, digitally, without cash.' However, Lagarde did qualify this by stating that 'many Europeans still like cash. I like cash. So we will continue to have cash… but we need, as a sovereign expression on the financial stage, to be able to respond to the demand of our customers, Europeans.' She added that 'if they want cash, we should be able to print secure banknotes. If they want digital cash, we should be able to offer a digital euro.' In other words, there is a public demand for a digital euro. The ECB has been developing it for many years, and it is now ready to go. In Lagarde's opinion, it is in the interests of all to launch it. The only missing ingredient is the legislative framework, which the European Parliament must establish. Awaiting legislation Ultimately, the ECB will decide whether to launch a digital euro, and it appears clear which way it is leaning in this regard. However, the decision requires the approval of a regulation establishing a legal framework for a digital euro. Thus, in 2023, the European Commission, the executive arm of the EU, put forward a digital euro package to regulate the main aspects of a digital euro in order to ensure the same rules and conditions are applied throughout the euro area when using it. This package was referred to the Committee on Economic and Monetary Affairs (ECON) in the European Parliament. On February 9, 2024, a draft report on the package and the ECB's digital euro investigation phase was tabled, but as yet no vote on this draft report has taken place. Therefore, the ECB remains without the necessary legislative framework to launch the digital euro, no matter how much it wants to. The insistence with which Lagarde extols the merits of the digital euro, along with the ECB's repeated assertions about its readiness to launch it, could be read as a sign of impatience with the EU parliament dragging its feet on regulation. This was made explicit on April 8, 2025, when Piero Cipollone, Member of the ECB Executive Board, presented to the ECON Committee an update on the developments of the digital euro project, and at the same time urged members of the European Parliament (MEPs) to make progress on the legislative file. Digital euro's development In 2021, at the height of the COVID-19 pandemic and the accompanying dramatic drop in physical cash payments, the ECB launched an investigation phase into a Eurozone CBDC to be used by citizens and businesses for retail payments. This lasted for two years, after which the central bank began the digital euro 'preparation phase,' in November 2023. After positive progress, in November 2024, the ECB called for partners to test conditional payments in a CBDC simulation to start in February 2025. When February rolled around, the ECB announced it was expanding the initiative to settle transactions between institutions with a wholesale CBDC payment system. A month later, Lagarde reaffirmed the ECB's commitment to the project, saying that the team behind the digital euro was 'focused on accelerating the pace,' as well as highlighting how they were campaigning to get other stakeholders, like the EU Parliament and European Commission, on board. Lagarde also said that the 'testing phase' of the digital euro is scheduled to end this October. After that, the ECB will publish a final report and decide whether to issue a CBD, pending the necessary legislation. More recently, on May 5, the ECB announced that it had established an 'innovation platform' with 70 participants to collaborate on testing the digital euro project. According to the central bank, the platform simulates the envisaged digital euro ecosystem, 'in which the ECB provides the technical support and infrastructure for European intermediaries to develop innovative digital payment features and services at European level.' This brings us to the current state of limbo, with the ECB continuing tests but apparently already decided and united behind a digital euro, while the necessary regulation— as is often the case —plays catch-up. Watch: CBDCs are more than just digital money title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
