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China

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China’s politically sensitive trade surplus soared to a record $75.4 billion in November as exports surged 21.1% over a year earlier, propelled by American consumer demand.

Exports to the United States rose 46% despite lingering tariff hikes in a trade war with Washington, customs data showed Monday.

Total exports rose to $268 billion, accelerating from October’s 11.4% growth. Imports gained 5% to $192.6 billion, up from the previous month’s 4.7%.

Chinese exporters have benefited from the economy’s relatively early reopening after the Communist Party declared the coronavirus pandemic under control in March while foreign competitors still are hampered by anti-disease controls.


Reuters | Equities.com |

The U.S. House of Representatives passed a law to kick Chinese companies off U.S. stock exchanges if they do not fully comply with the country’s auditing rules, giving President Donald Trump one more tool to threaten Beijing with before leaving office.

The measure passed the House by unanimous voice vote, after passing the Senate unanimously in May, sending it to Trump, who the White House said is expected to sign it into law.

“The Holding Foreign Companies Accountable Act” bars securities of foreign companies from being listed on any U.S. exchange if they have failed to comply with the U.S. Public Accounting Oversight Board’s audits for three years in a row.


Reuters | Equities.com |

Tesla Inc plans to start manufacturing electric vehicle (EV) chargers in China in 2021, according to a document submitted to the Shanghai authorities by the U.S. firm which is seeking to expand sales in the world’s biggest car market.

Tesla, which now sells its Model 3 electric cars in China and plans to deliver its Model Y sport utility vehicles in 2021, plans to invest 42 million yuan ($6.4 million) in a new factory to make the chargers, also known as charging piles, near its car plant in Shanghai, the document seen by Reuters said.


Reuters | Equities.com |

Tiffany & Co, which is being bought by French luxury giant LVMH, beat Wall Street expectations for quarterly profit on Tuesday as the U.S. jeweler benefited from an over 70% rise in sales in China and a recovery in demand at home.

The results bode well for the upcoming holiday season for the jeweler and other luxury retailers in general, which have been hit hard by the pandemic. They also underscore the growing importance of sales within mainland China to offset dependence on tourism, especially on Chinese tourists visiting fashion hubs like Milan and Paris.


Reuters | Equities.com |

Blackstone Group Inc is seeking to raise at least $5 billion for its second private equity fund focused on Asia, Bloomberg News reported on Sunday, citing people familiar with the matter.

With this new vehicle, Blackstone plans to more than double the size of its first Asia buyout fund, Bloomberg reported (here). The company closed its first Asian private equity fund at about $2.3 billion in 2018.


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 |

Qualcomm Inc on Friday received a license from the U.S. government to sell 4G mobile phone chips to China’s Huawei Technologies Co Ltd, an exemption to U.S. trade restrictions imposed amid rising tensions with China.

“We received a license for a number of products, which includes some 4G products,” a Qualcomm spokeswoman told Reuters.

Qualcomm and all other American semiconductor companies were forced to stop selling to the Chinese te...


Reuters | Equities.com |

The Trump administration on Thursday unveiled an executive order prohibiting U.S. investments in Chinese firms that Washington says are owned or controlled by the Chinese military, ramping up pressure on Beijing after the U.S. election.

The order, which was first reported by Reuters, could impact some of China’s biggest companies, including telecoms firms China Telecom Corp Ltd, China Mobile Ltd and surveillance equipment maker Hikvision.

The move is designed to deter U.S. investment firms, pension funds and others from buying shares of 31 Chinese companies that were designated by the Defense Department as backed by the Chinese military earlier this year.


Reuters | Equities.com |

Tencent’s blockbuster game and solid advertising drove an 89% rise in quarterly profit at the Chinese gaming and social media group, helping it to beat forecasts on Thursday.

With its flagship game Honour of Kings reporting a record 100 million daily active users in the first 10 months of 2020, Tencent, the world’s largest gaming firm by revenue, has benefited from growth of paying users for video games.

Tencent said on Thursday its profit was 38.5 billion yuan ($5.8 billion) for the three months through September. That was ahead of an analyst average estimate of 30.81 billion yuan, data from Refinitiv showed. Revenue rose 29% to 125.4 billion yuan.


Reuters | Equities.com |

American Airlines said it is restarting passenger flights to China on Wednesday, lifting the total number of U.S. weekly flights to 10 as the U.S. government continues to push for more air service between the world’s two largest economies.

The United States and China agreed in June to start allowing four weekly flights between the two nations after travel was halted earlier in the year due to the coronavirus. They raised the number to eight in August.

Now U.S. carriers will operate 10 flights per week, but the United States is “not satisfied” with that, the Department of Transportation’s deputy assistant secretary for aviation and international affairs, David Short, said at a virtual aviation conference on Wednesday.