China's reliance on ASML EUV technology is its 'biggest moat': Analyst
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China releases draft law amendment to help curb price wars
BEIJING (Reuters) -China released a draft amendment to its pricing law on Thursday as part of efforts to curb excessive competition and price wars among firms, amid persistent deflationary pressures. Chinese leaders have signaled they will rein in price wars among producers as expectations grow for a new round of factory capacity cuts in a long-awaited but challenging campaign against deflation - a move that could pose risks to economic growth. Under the proposed revisions, apart from lawful discounts on seasonal or overstocked goods, or other legitimate reasons for price cuts, firms will be prohibited from selling below cost to drive out competitors or monopolise the market, and from forcing others to adopt similar pricing practices. The draft law, published on the website of the National Development and Reform Commission (NDRC) - the state planner, also stipulates that firms cannot use data, algorithms, or technology to engage in improper pricing behaviors. The NDRC and the State Administration for Market Regulation said in a statement that China's economic landscape has changed significantly since the current pricing law was adopted in 1998. "The vast majority of goods and services prices are now formed by the market, new economic forms and business models are constantly emerging, and issues such as disorderly low-price competition in some industries have become prominent," they said. China will refine standards for identifying price collusion, price gouging, price discrimination and other unfair pricing practices, and take steps to address "involution-style" competition, the state agencies said. The draft amendment, which is open for public comment until August 23, also proposes tougher penalties for unfair pricing practices, including higher fines for violations of clear price marking requirements. China's producer prices dropped for the 33rd month in June. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Chery to support India's JSW to launch new EV brand by 2027
China's Chery Automobile has agreed to supply technology and components to JSW Group to facilitate the launch of a new-energy vehicle brand in India by 2027, reported Bloomberg, citing people familiar with the matter. Under the terms of the agreement, Chery is said to receive a one-time technology transfer payment fee and ongoing royalties from JSW, owned by Sajjan Jindal. The partnership does not include any equity arrangement, adhering to India's investment restrictions on Chinese firms in strategic sectors. This deal represents the first significant passenger vehicle technology transfer from China to India since the 2020 border conflicts, which led to heightened bilateral tensions and investment barriers. Chery and JSW have contested the details reported by Bloomberg News, stating that the agreement primarily concerns component supply. Chery's expertise in electric cars, hybrids, and automotive technologies like electric powertrains, hybrid systems, and intelligent cockpit technology is crucial for JSW's goal to localise and scale production swiftly. JSW is currently assessing several Chery models, especially the iCar sport utility range, to adapt for the Indian market. The new EV brand is said to be entirely owned by JSW and will operate separately from its current MG Motor India joint venture (JV) with China's SAIC Motor, which will continue to sell vehicles under the MG brand in India. The royalty payments from JSW will contribute to Chery's revenue and support its global expansion plans, which include a $1bn factory in Turkey. The JSW is also reportedly constructing facilities in Maharashtra state in India to produce its own brand of passenger EVs from 2027 and plans to introduce electric trucks and buses as early as next year. Furthermore, JSW aims to increase its stake in the MG Motor JV by purchasing additional SAIC's stake in the entity, as disclosed by JSW MG Motor India director Parth Jindal in a local Indian newspaper earlier this month. In May, Bloomberg News reported that Chery is also considering a Hong Kong initial public offering to raise around $1.5bn, citing those familiar with the matter. Earlier this month, Chery confirmed its entry into the UK new car market this summer under its own brand. "Chery to support India's JSW to launch new EV brand by 2027 – report" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Analyst Explains Why Nvidia China News Could be ‘Huge' for ASML Holding (ASML)
ASML Holding N.V. (NASDAQ:ASML) is one of the . Joe Tigay from Equity Armor Investment said in a recent program on Schwab Network that the US government's decision to allow Nvidia to sell chips in China could be 'huge' for ASML Holding NV (NASDAQ:ASML). He explained why the company is important in the AI industry: 'ASML has been a company I've been following for the past few years. I am obviously a big fan. It's been behind this chip revolution. It makes what people have called the most complicated machine humans have ever built and as you can imagine it is very expensive to produce. They are essentially the machine that makes the machine. So we can't get these Nvidia chips without these ASML machines. And I think this China news could be really huge for this company. We remember they took a big write off, big leg down when the China news came out that Nvidia will not be selling to China earlier in the year. So it's going to be interesting to see are we going to be able to recover all that? Yes, the stock actually has recovered from that gap right now, but a lot of that recovery was just from new businesses, existing growth of their business.' Photo by Redd on Unsplash Parnassus Growth Equity Fund stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q1 2025 investor letter: 'In Information Technology, we moved from an underweight to an overweight as we added new positions in Synopsys, ASML Holding N.V. (NASDAQ:ASML) and AppFolio while selling Adobe and Procore Technologies. ASML is a leading supplier of photolithography systems, equipment crucial for producing advanced microchips. It has a wide moat built on technology innovation, high market share and strong customer and supplier relationships.' While we acknowledge the potential of ASML as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
