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China is exempting some foreign executives from travel ban as authorities get coronavirus outbreak under control

20 days ago

[unable to retrieve full-text content]China is allowing executives from some foreign companies to enter the country despite a coronavirus travel ban as it seeks to restart the economy, according to people familiar with the matter.The Ministry of Commerce told some key foreign companies they can apply for exemptions to the entry ban if they want to get executives back into China, the people said, asking not to be identified because the matter has not been made public. They would still serve a mandatory quarantine, one of the people…

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US-China trade chiefs to have call as Donald Trump and coronavirus threaten phase one deal

25 days ago

[unable to retrieve full-text content]Top Chinese and US trade negotiators will speak as soon as next week on progress in implementing a phase one deal after US President Donald Trump threatened to “terminate” the agreement if Beijing was not adhering to the terms.Chinese Vice-Premier Liu He will be on the call, according to people familiar with the matter. The US will be represented by US Trade Representative (USTR) Robert Lighthizer, one of the people said.The planned phone call will be the first time Liu and Lighthizer speak…

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NetEase picks banks to arrange Hong Kong secondary listing, joining Alibaba, JD.com in making a beeline for city’s stock exchange

27 days ago

[unable to retrieve full-text content]NetEase has picked banks for its planned second listing in Hong Kong, according to people familiar with the matter, joining other Chinese technology companies in tapping the city’s stock market for new funds.The company is working with advisers including Credit Suisse Group AG and China International Capital Corporation (CICC) on the offering, which it has confidentially filed to the stock exchange, the people said. The share sale could happen as soon as the second half of this year, one of the…

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India to lure firms fleeing China with land offering nearly double the size of Luxembourg

27 days ago

[unable to retrieve full-text content]India is developing a land pool nearly double the size of Luxembourg to lure businesses moving out of China, according to people with the knowledge of the matter.A total area of 461,589 hectares has been identified across the country for the purpose, the people said, asking not to be identified because they are not authorised to speak to the media. That includes 115,131 hectares of existing industrial land in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh, they said…

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Coronavirus: China injects US$7.9 billion into banking system in latest bid to shore up liquidity

April 24, 2020

[unable to retrieve full-text content]China’s central bank rolled over some of the targeted funds due on Friday while cutting interest rates on the loans, the latest in a string of measures aimed at ensuring sufficient liquidity.The People’s Bank of China (PBOC) injected 56.1 billion yuan (US$7.9 billion) into the banking system via the targeted medium-term lending facility (TMLF), just as 267.4 billion yuan of the debt comes due.The one-year funding was offered at an interest rate of 2.95 per cent, lowered from the 3.15 per cent…

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Jobs are being destroyed around the world as coronavirus pandemic pushes one economy after another into recession

April 4, 2020

[unable to retrieve full-text content]The world’s workers are reeling from the initial shock of the coronavirus recession, with job losses and welfare claims around the globe already running into the millions this week. As the International Labour Organisation warns of almost 25 million lay-offs if the virus isn’t controlled, the cuts from Austria to the US reflect the deepest peacetime recession since the 1930s as economies are frozen to beat the pandemic.“We see unemployment rates in the US and Europe getting up well up into the…

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Coronavirus could slash global GDP output by almost 5 per cent amid ‘severe financial turmoil’, ADB says

April 3, 2020

[unable to retrieve full-text content]The cost of the coronavirus pandemic could be as high as $4.1 trillion, or almost 5 per cent of global gross domestic product, depending on the disease’s spread through Europe, the United States and other major economies, the Asian Development Bank said on Friday.A shorter containment period could limit the damage to $2 trillion, or 2.3 per cent of world output, the Manila-based lender said in its Asian Development Outlook report. Developing Asia, including China, accounts for 22 per cent to 36…

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Coronavirus: China slashes bank loan rate by biggest amount in five years, joining global easing

March 30, 2020

[unable to retrieve full-text content]China’s central bank on Monday cut the interest rate it charges on loans to banks by the biggest amount since 2015 as authorities ramp up their response to the worsening economic impact from the coronavirus pandemic.The People’s Bank of China (PBOC) reduced the interest rate on 7-day reverse repurchase agreements to 2.2 per cent from 2.4 per cent, according to a statement from the bank on Monday. The PBOC said this wwould keep liquidity sufficient to help the real economy.The first cut to a…

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Coronavirus: a global consumer default wave is just getting started in China

March 29, 2020

[unable to retrieve full-text content]Like millions of people around the world, Zhang Chunzi borrowed money she thought she would be able to repay before the coronavirus changed everything.Now laid off from her job at an apparel exporter in Hangzhou, the prosperous capital of east China’s Zhejiang province, the 23-year-old is missing payments on 12,000 yuan (US$1,700) of debt on her credit card and an online lending platform operated by Ant Financial.“I’m late on all the bills and there’s no way I can pay my debt in full,” Zhang…

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Coronavirus puts global economy at risk of worst year since 2009 crisis as hopes fade, stocks plunge

February 28, 2020

[unable to retrieve full-text content]The world economy may be heading for its worst performance since the financial crisis more than a decade ago as the spread of the coronavirus increasingly dashes hopes of a swift rebound.Just weeks since most economists bet the China-led slump would quickly reverse once the virus was contained, many are rethinking that optimism as swathes of Chinese factories stay shut and workers idled. Having already cut supply chains and undermined tourism and trade, outbreaks from Europe to the Americas…

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China cuts medium term loan rate to support coronavirus-hit economy

February 17, 2020

[unable to retrieve full-text content]China provided medium-term funding to banks and cut the interest rate it charges for the money as officials sought to cushion the economy from the coronavirus outbreak.The People’s Bank of China (PBOC) offered 200 billion yuan (US$28.6 billion) of one-year medium-term loans on Monday. The rate was lowered by 10 basis points to 3.15 per cent.The central bank also added 100 billion yuan of funds with seven-day reverse repurchase agreements. Some 1 trillion yuan (US$143 billion) of reverse repos…

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US revokes WTO subsidy preferences for some developing nations, including China, India and Singapore

February 10, 2020

[unable to retrieve full-text content]The Trump administration is changing a key exemption to America’s trade-remedy laws to make it easier to penalise about two dozen so-called developing economies, including China, Hong Kong, India and Singapore.The US on Monday narrowed its internal list of developing and least-developed countries to reduce the threshold for triggering a US investigation into whether nations are harming US industries with unfairly subsidised exports, according to a US Trade Representative notice.In doing so, the…

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Coronavirus shuts down a provincial economy the size of Sweden for the third week as Hubei hunkers down

February 10, 2020

[unable to retrieve full-text content]China’s Hubei province is now in the third week of a shutdown triggered by the virus that has killed hundreds of people – and halted an industrial powerhouse the size of Sweden.Every day of closure deepens the disruption to the nation’s economy, and indeed the world. China’s largest producer of phosphorus, used in fertiliser is there, and it’s also at the heart of the country’s auto industry with local carmakers like Dongfeng Motor Group and global titans such as PSA Group and Honda Motor…

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What’s the coronavirus’ impact on the world? Economists get creative in finding data to measure the outbreak’s effects

February 10, 2020

[unable to retrieve full-text content]It’s a mad scramble for the best data: Economists are grappling with ways to gauge the real-time impact of the coronavirus on the world economy, even as the outbreak continues to confound forecasters.Store closures, flight-tracking websites, factory shutdowns and the latest numbers on infections and fatalities are just some of the high-frequency data points economists are scouring for clues on the hit to growth.“To track the impact of the virus on the global economy, we have had to look at…

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Coronavirus: Xi Jinping reassured Donald Trump trade deal goal will be met, says White House adviser Larry Kudlow

February 7, 2020

[unable to retrieve full-text content]China’s leader Xi Jinping reassured US President Donald Trump in a phone call that Beijing would meet purchase goals outlined in the recent trade deal between the countries – despite the impact of the coronavirus on the Asian nation, White House economic adviser Larry Kudlow said Friday.“Xi apparently said, may be a little slower to purchase American exports, but it will get done by the end of the year and next year,” Kudlow said in a Bloomberg Television interview on Friday.The virus outbreak…

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Production halts at China factories lead to worldwide shortages in components as coronavirus outbreak spreads

February 5, 2020

[unable to retrieve full-text content]The global car industry is facing a stress test as the coronavirus outbreak in China disrupts the supply of components from transmissions to steering systems.Parts manufacturers across China have suspended production through this week and in the case of Hubei province, the outbreak’s epicentre, factories will remain shut until Feb. 13 or later. That leaves car plants at risk both in China – the world’s largest market – and beyond: Hyundai Motor on Tuesday became the first global carmaker to…

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China’s US trade war deal is ‘is good for the world’ and‘will not impact’ imports from other countries

January 22, 2020

[unable to retrieve full-text content]Vice-Premier Han Zheng told the World Economic Forum that China’s trade deal with the United States will not hurt rival exporting nations as complaints mount from governments that were left out of the agreement.Han said that China’s commitment to buy more from the US are in line with its World Trade Organisation (WTO) obligations and will not squeeze out other imports.He also pledged to lower barriers for foreign investors as he set out the case for China’s engagement with the global economy…

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Climate change may spark ‘green swan’ disasters that trigger systemic financial crisis unless authorities take action, BIS warns

January 21, 2020

[unable to retrieve full-text content]Climate change threatens to provoke “green swan” events that could trigger a systemic financial crisis unless authorities act against such risks, according to the Bank for International Settlements.The analysis by officials at the Basel-based institution – often described as the central bank for central banks – adapts the “black swan” concept devised by Nassim Nicholas Taleb to describe adverse events outside the scope of regular expectations with wide-ranging or extreme impacts.“Green swans or…

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China unveils sweeping plan to reduce single-use plastic by 2025

January 19, 2020

[unable to retrieve full-text content]China’s top economic planner said it would cut the production and use of plastic over the next five years, helping reduce one of the world’s biggest sources of plastic pollution.By the end of this year, non-degradable plastic bags will be banned in places such as supermarkets and shopping malls in major cities, as well as in the country’s ubiquitous food delivery services, according to a plan released by the National Development and Reform Commission on Sunday.China will significantly reduce…

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China’s plan to slash health care costs sees global pharmaceutical firms crowded out of market

January 18, 2020

[unable to retrieve full-text content]China’s biggest-ever round of drug price cuts saw global pharmaceutical firms losing most of the nationwide contracts to local rivals, as Beijing aggressively pushes to contain health care costs by an average of 53 per cent decline in latest bulk purchase.Among 33 commonly used medicines in a bidding exercise on Friday, some moneymakers for global pharmaceutical companies had the deepest cuts, with the biggest one being as high as 93 per cent as shown in a government-funded medical procurement…

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US won’t cut more China tariffs until after presidential election

January 14, 2020

[unable to retrieve full-text content]Existing tariffs on billions of dollars of Chinese goods coming into the US are likely to stay in place until after the American presidential election, and any move to reduce them will hinge on Beijing’s compliance with the terms of a phase one trade accord, people familiar with the matter said.The two sides have an understanding that no sooner than 10 months after the signing of the agreement at the White House Wednesday, the US will review progress and potentially consider additional cuts on…

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Yum China, operator of KFC and Pizza Hut, is working with CICC, Goldman on Hong Kong listing as Chinese companies mull return to home market

January 14, 2020

[unable to retrieve full-text content]Yum China Holdings Inc is working with China International Capital Corp. and Goldman Sachs Inc. on the preparations of a second listing in Hong Kong, fuelling the wave of US-listed Chinese companies returning to a market that is closer to home.The operator of Pizza Hut and KFC restaurants in China is working with the banks on the share sale, according to people familiar with the matter. The listing could take place as soon as this year, said the people, who asked not to be identified as the…

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US lifts China’s currency manipulator designation ahead of phase one trade deal

January 13, 2020

[unable to retrieve full-text content]The United States on Monday removed the currency manipulator label it imposed on China last summer, in a sign of easing tensions between the two economic powers after nearly two years of conflict.Just two days before President Donald Trump is set to sign a phase one trade agreement with China, the US Treasury said in its semi-annual report to Congress that the yuan has strengthened and Beijing is no longer considered a currency manipulator.Although the Treasury refrained from slapping the label…

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Uniqlo suffers worst overseas sales drop in decade on Hong Kong protests, South Korea boycott

January 10, 2020

[unable to retrieve full-text content]Political flare-ups in Asia are putting the brakes on Fast Retailing Co.’s overseas growth momentum, as the operator of Uniqlo apparel stores reported the worst quarterly revenue decline in a decade for its international segment.Asia’s largest retailer, controlled by Japan’s top billionaire Tadashi Yanai, has long counted on overseas expansion to power growth in the face of a weak Japanese market. Now that strategy is coming up against the political protests in Hong Kong as well as a trade spat…

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Lunar New Year in China raises risks of worsening African swine fever crisis, minister says

January 8, 2020

[unable to retrieve full-text content]China’s race to boost pork supplies by increasing hog breeding has raised the risks of worsening the African swine fever crisis, the government said on Wednesday.The African swine fever situation “is still severe and complex,” vice-agriculture minister Yu Kangzhen said in Beijing. “The risk of outbreaks will rise with the rapid increase in the number of live hogs.”The rare show of candour by the Chinese government on a disease that has roiled the industry follows months of comments tamping down…

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US firms and consumers, not China, paying for Trump’s tariffs

January 6, 2020

[unable to retrieve full-text content]American companies and consumers are paying almost the full cost of US tariffs, and the impact of those duties on import volume magnifies over time, according to a paper circulated on Monday by the National Bureau of Economic Research.Traditional trade theory would suggest tariffs levied by the US should cause foreign firms to lower prices and thereby force them to shoulder the cost of the duties.However, the study by Federal Reserve Bank of New York researcher Mary Amiti and professors Stephen…

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Bezos keeps his crown among centibillionaires as LVMH’s boss Arnault becomes the third man with 11 zeros in his bank account

December 29, 2019

[unable to retrieve full-text content]The leveraging of a giant social-media presence, a catchy tune about a family of sharks and a burgeoning collection of junkyards are just a few of the curious ways that helped make 2019 a fertile year for fortunes to blossom around the world.Kylie Jenner became the youngest self-made billionaire this year after her company, Kylie Cosmetics, signed an exclusive partnership with Ulta Beauty. She then sold a 51 per cent stake for US$600 million.It has been almost two months since the Washington…

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Christmas lights, tangled in US-China trade war, show Vietnam’s struggle

December 26, 2019

[unable to retrieve full-text content]In living rooms across the US and the world, Christmas lights this year tell a complicated trade-war tale that stretches all the way to Vietnam.For many years the holiday lights were produced almost solely in China, but increased US tariffs on Chinese goods pushed many buyers to source the goods elsewhere.One country that has come out a clear winner is Vietnam: seaborne shipments of Christmas lights from Vietnam to the US more than doubled in the first 10 months of the year from the same period…

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China’s Xi Jinping set to skip World Economic Forum in Davos, scuppering hopes of meeting with Donald Trump

December 20, 2019

[unable to retrieve full-text content]Chinese President Xi Jinping is not planning to attend the World Economic Forum in January, according to people familiar with the matter, taking one option for a face-to-face meeting with his US counterpart Donald Trump off the table.Beijing still plans to send its top trade negotiator, Vice-Premier Liu He, to Washington to sign the phase one deal in early January, an official said separately, asking not to be identified because the discussions were private.US trade representative Robert…

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China’s central bank urged to prevent ‘chain reaction’ of debt defaults among local financing vehicles

December 18, 2019

[unable to retrieve full-text content]An adviser to China’s central bank urged authorities to take measures to prevent “systemic risks” from the failure of local government borrowing platforms, and warned of a “chain reaction” should defaults be allowed to damage market confidence.Ma Jun, an external adviser to the People’s Bank of China (PBOC) monetary policy committee, said in an interview with Securities Times published on Wednesday that the government could allow so-called local-government financing vehicles (LGFVs) with strong…

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