News

Trade Wars

Reuters | Equities.com |

U.S. President Donald Trump’s trade war with China has caused a peak loss of 245,000 U.S. jobs, but a gradual scaling back of tariffs on both sides would boost growth and lead to an additional 145,000 jobs by 2025, a study commissioned by the U.S.-China Business Council (USCBC) shows.

The group, which represents major American companies doing business in China, said the study by Oxford Economics also includes an “escalation scenario” which estimates a significant decoupling of the world’s two largest economies could shrink U.S. GDP by $1.6 trillion over the next five years. This could result in 732,000 fewer U.S. jobs in 2022 and 320,000 fewer jobs by 2025, it said.


Reuters | Equities.com |

The Trump administration in its waning days took another swipe at China and its biggest firms on Thursday, imposing sanctions on officials and companies for alleged misdeeds in the South China Sea and imposing an investment ban on nine more firms.

The moves will further increase tensions with China, Washington’s strategic rival in Asia, days before President-elect Joe Biden takes office on Wednesday. The Biden transition team did not immediately respond to a request for comment.

Executives of state-owned enterprises, officials of the Chinese Communist Party and military, along with oil giant CNOOC will face new restrictions for allegedly using coercion against states with rival South China Sea claims.


Reuters | Equities.com |

The United States added dozens of Chinese companies, including the country’s top chipmaker SMIC and Chinese drone manufacturer SZ DJI Technology Co Ltd, to a trade blacklist on Friday as U.S. President Donald Trump’s administration ramps up pressure on China in his final weeks in office.

Reuters first reported the addition of SMIC and dozens of additional companies eary Friday. The move is seen as the latest in Republican Trump’s efforts to cement his tough-on-China legacy as part of lengthy fight between Washington and Beijing over trade and numerous economic issues.


Reuters | Equities.com |

S&P Dow Jones Indices on Thursday became the second major index provider to remove some Chinese companies from its index products following a Trump administration executive order, in the latest market disruption from persistent Sino-U.S. tensions.

Outgoing U.S. President Donald Trump’s executive order, unveiled in November, is designed to deter U.S. investment firms, pension funds and others from buying shares of Chinese companies designated by the U.S. Defense Department as backed by the Chinese military.

S&P DJI said it would remove mainland-listed A-shares, Hong Kong-listed H-shares and American Depositary Receipts (ADRs) of 10 companies including Hangzhou Hikvision Digital Technology Co Ltd and Semiconductor Manufacturing International Corp (SMIC) from all equity indexes prior to the market open on Dec. 21.


Reuters | Equities.com |

German chipmaker Infineon Technologies is relatively well insulated from geopolitical tensions between the United States and China thanks to its focus on power-management chips, CEO Reinhard Ploss said on Wednesday.

Outgoing U.S. President Donald Trump’s administration has imposed trade curbs on Chinese telecoms equipment and smartphone maker Huawei, seeking to hobble its ability to equip next-generation 5G mobile networks.

Although Infineon is a Huawei supplier, its main power-management products tie it more to China’s broad industrial development than to 5G, Ploss told the Morgan Stanley European Technology, Media and Telecoms conference.


Reuters | Equities.com |

The European Union will impose tariffs on up to $4 billion of U.S. imports in retaliation for U.S. subsidies for Boeing, but said on Monday it was hopeful of an improvement in trade ties under U.S. President-elect Joe Biden.

The move, given the green light by the World Trade Organization last month, is the latest in a 16-year U.S.-EU dispute over civil aviation subsidies. U.S. tariffs on $7.5 billion of EU products after a parallel WTO case against Airbus AIR.PA have been in place for over a year.


Reuters | Equities.com |

(Reuters) - Alibaba Group beat third quarterly revenue estimates on Thursday, driven by e-commerce growth after China emerged from coronavirus lockdowns, and said it was assessing the suspension of its affiliate Ant Group’s listing.

China’s surprise suspension of Ant Group’s planned $37 billion Shanghai initial public offering (IPO) was seen by some analysts and investors as an attempt by Beijing to cut founder Jack Ma and his financial services empire down to size.

Alibaba Chief Executive Daniel Zhang said during an earnings call that added that Alibaba is "actively evaluating" the impact of the Ant Group IPO's suspension on its business and will "take appropriate measures accordingly".


AP News | Equities.com |

World Trade Organization arbitrators said Tuesday that the European Union can sanction up to $4 billion in U.S. goods over Washington’s illegal support for plane maker Boeing.

The ruling, which could inflame Trump administration criticism of the Geneva-based trade body, amounts to one of the largest penalties handed down by the WTO. It comes a year after another ruling authorized billions in penalties against the European Union over support for Boein...


Reuters | Equities.com |

The European Union’s new trade chief has told the U.S. to withdraw tariffs on more than $7 billion of EU products or face additional duties on exports to Europe, as he urged a settlement to the dispute over Airbus SE and Boeing Co, the Financial Times reported on Sunday.

Repairing the transatlantic relationship would be EU's top priority, and the U.S. should withdraw its Airbus-related tariffs as a confidence-building measure, the EU's new trade chief Valdis Dombrovski...


Reuters | Equities.com |

(Reuters) - Sogou Inc said on Tuesday shareholder Tencent Holdings Ltd would take the web search firm private in a $3.5 billion deal, making it the latest Chinese company to exit U.S. markets as tensions mount between the world’s two largest economies.

U.S.-listed shares of Sogou were up about 3% in premarket trading.

The move comes a day after Chinese social network Weibo’s owner Sina Corp said it would be taken private in a $2.6 billion deal. Rival e-commerce firms A...