South Korean auto shares dip after Korea-US trade deal
Hyundai Motor shares were down two per cent and Kia Corp stock lost 3.3 per cent.
The deal reduces US tariffs on South Korean autos from 25 per cent to 15 per cent, the same rate as Japanese car imports.
Before Washington imposed 25 per cent auto tariffs in April, there were zero tariffs on most South Korean auto imports under a bilateral trade deal, while there was a 2.5 per cent tariff on Japanese auto imports.
The deal removes the 2.5 per cent advantage in tariffs South Korean automakers had enjoyed over Japanese rivals under the Korea-US free trade deal, analysts said.
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Malay Mail
an hour ago
- Malay Mail
Biofuel battle: Why India is shielding its farmers in the face of US trade pressure
MUMBAI, Aug 3 — US President Donald Trump on Thursday slapped a 25 per cent tariff on Indian goods after prolonged talks that got bogged down over access to India's labour-intensive agricultural sector, which New Delhi has pledged to protect. Why is India opposing the products the US is lobbying for? The United States is pressing India to open its markets to a wide range of American products, including dairy, poultry, corn, soybeans, rice, wheat, ethanol, fruits and nuts. While India is willing to provide greater access for US dry fruits and apples, it is holding back on corn, soybeans, wheat, and dairy products. A key reason for this resistance is that most US corn and soybeans are genetically modified (GM), and India does not permit the import of GM food crops. GM crops are widely perceived in India as harmful to human health and the environment, and several groups affiliated with Prime Minister Narendra Modi's ruling Bharatiya Janata Party (BJP) are opposing their introduction. The commercial cultivation of a high-yielding GM mustard variety that India developed itself is currently not allowed due to an ongoing legal battle. Like GM crops, dairy is also a highly sensitive issue, as it provides a livelihood for millions of farmers, including many who are landless or smallholders. The dairy industry helps sustain farmers even during erratic monsoon seasons, which can cause significant fluctuations in crop production. In India, where a large proportion of the population is vegetarian, food choices are strongly influenced by cultural and dietary preferences. Indian consumers are particularly concerned that cattle in the US are often fed animal by-products — a practice that conflicts with Indian food habits. A farmer sprinkles fertiliser in a paddy field on the outskirts of Amritsar on July 5, 2025. — AFP pic Why are agricultural imports politically charged? India is self-sufficient in most farm goods, with the exception of vegetable oils. After liberalising cooking oil imports over three decades ago, the country now has to import nearly two-thirds of its supply to meet demand. India does not want to repeat this mistake with other basic foods, which account for nearly half of its consumer price index. Though agriculture makes up just 16 per cent of India's nearly US$3.9 trillion economy, it is the lifeblood for nearly half the country's 1.4 billion people. Four years ago, this powerful voting bloc forced Modi's government into a rare retreat on a set of controversial farm laws. Some in power fear a flood of cheaper US imports would bring down local prices and hand opposition parties an opportunity to sharpen its attack on the government. New Delhi is also worried that a trade deal with the US could also force it to open its agricultural sector to other countries. Farmers work in an onion farm near power-generating windmill turbines of Adani Green Energy at Ahmedabad-Narayan Sarovar state highway near Nakhatrana village in the western state of Gujarat November 29, 2024. — Reuters pic How does farming in India and the US differ? The vast disparity in the scale of farming makes it difficult for Indian farmers to compete with their US counterparts. The average Indian farm is 1.08 hectares, compared to 187 hectares in the US For dairy farmers, the difference is even more dramatic — a small herd of two or three animals versus hundreds or more in the US Many Indian farmers also rely on traditional, unmechanised techniques, while American agriculture has developed into a highly efficient, tech-driven industry. Why is India hesitant to use US ethanol in its biofuel programme? One of India's key goals with its Ethanol Blended Petrol (EBP) programme is to reduce energy imports and support domestic farmers by using sugarcane and corn for biofuel production. Indian companies have invested heavily in new distilleries, and farmers have expanded corn cultivation to meet the rising demand. India recently achieved its ambitious target of a 20 per cent ethanol blend in petrol. With state assembly elections approaching in Bihar — a major corn-producing state in the east — allowing US ethanol imports would lower local corn prices. This would probably anger farmers and turn them against the BJP ahead of the election and also undermine the growing distillery sector. — Reuters
The Star
2 hours ago
- The Star
Nvidia denies back-door features in its H20 chips after Beijing raises security concerns
Nvidia said its chips had no 'back doors' after China's cyberspace regulator interviewed company representatives over alleged security risks associated with its H20 chips, which were tailor-made for Chinese customers, although it remains unclear what impact Beijing's mistrust of the US firm will have over time. 'Cybersecurity is critically important to us,' an Nvidia representative said in an email to the South China Morning Post on Thursday night. 'Nvidia does not have 'back doors' in our chips that would give anyone a remote way to access or control them.' The statement was in response to a regulatory move by the Cyberspace Administration of China (CAC), the agency responsible for the country's cybersecurity. The Chinese regulator said on Thursday that it had summoned and interviewed Nvidia regarding the potential tracking and remote control functions of its H20 chips, a surprise move as Nvidia had just received the green light from Washington to export the chips to clients in China. Nvidia's shares were down 0.8 per cent on Thursday in New York. The latest development highlights the challenges faced by Nvidia, the world's most valuable company in terms of market capitalisation, in trying to please both Washington and Beijing amid intensifying US-China rivalry in artificial intelligence and hi-tech. While China needs Nvidia chips to build out its computing infrastructure, Beijing remains committed to the long-term goal of tech self-sufficiency by reducing its reliance on imported American equipment and technologies. In the latest example of that, a group of Chinese semiconductor and AI companies – including Huawei Technologies, Cambricon Technologies and Moore Threads – formed an alliance to push for the adoption of locally developed processors for AI projects. China's cyberspace administration did not specify the source or evidence for its concerns about back-door security threats associated with Nvidia chips. In May, a bipartisan group of US lawmakers introduced a bill that would require makers of AI processors to incorporate tracking technology in their chips before export. The proposal aimed to address reports of US export-controlled AI chips being smuggled into China via third countries. But Nvidia has never said that its H20 chips have such tracking functions. The summoning of Nvidia was the latest example of the long-lasting mistrust between Beijing and Washington over the other's tech hardware. The US has banned the use of Huawei gear in the American telecommunications network, while new guidelines from the administration of US President Donald Trump implied that the use of Huawei's Ascend AI chips 'anywhere in the world' could be a violation of US export controls. For its part, China accelerated the process of replacing imported technologies in its key infrastructure facilities about a decade ago, after former US National Security Agency contract employee Edward Snowden exposed the global spying practices of the US. In May 2023, the CAC said products from another US chip giant, Micron Technology, failed a national security review, resulting in a sales ban of its products to key infrastructure operators in China. - SOUTH CHINA MORNING POST
The Star
2 hours ago
- The Star
China's customisable robot market may be about to take off
A store near a bustling shopping centre in the southern Chinese city of Shenzhen feels more like a small robotics fair, with all kinds of robots – from humanoid assistants to food delivery bots and massage machines – quietly drawing curious eyes. Amid the excited chatter of children accompanying their parents, company owners, investors and tech enthusiasts busily exchange contact details and discuss collaboration. Some hope to place their own robots in the newly opened 60 square metre (646 sq ft) store; others are looking to make a purchase. China's robotics industry has expanded rapidly in recent years and is now eyeing vast consumer and service markets – a familiar playbook for the country's manufacturers. The Future Era store, which opened in Shenzhen's Longgang district on Monday, bills itself as the world's first '6S' robot store – offering leasing and customisation services in addition to the traditional '4S' retail staples of a showroom, sales, spare parts and customer service. Customers can browse the many models on display and then choose to buy, rent or even build their own by selecting components that suit their needs. The store showcases robots from companies such as Hangzhou-based Unitree Robotics, and Shenzhen's Engine AI and Leju Robot, with daily rental prices ranging from around 5,000 yuan to 20,000 yuan (US$695 to US$2,781). Instead of paying robot makers hefty agent fees, it adopts a profit-sharing model, splitting revenues 50-50 with the manufacturers, deputy manager Zhang Shuai said. Customers can receive the robots they order in less than 10 days, he said, even when modifications are required to meet specific needs. 'This is currently one of the most efficient ways to connect robot makers with customers,' Zhang said. 'People can come in, see and interact with the products in person – or just stumble in out of curiosity and discover the latest models on display for potential collaboration.' Amid intensifying tech rivalry with the United States, China's robotics industry has emerged as a key pillar of Beijing's broader strategy to seize an early edge in emerging technologies and position itself at the forefront of the next global wave of innovation. Leveraging its manufacturing scale, rapid iteration cycles and well-developed supply chains, China's robotics industry is rapidly scaling up, poised to tap into a vast domestic market and accelerate real-world adoption. China was home to more than 741,700 robotics-related companies last year, Shenzhen Daily reported, with many of the sector's leading players moving on to mass production. Unitree shipped over 20,000 robot dogs last year, securing nearly 70 per cent of the global consumer-grade legged robot market, according to the Gaogong Industry Research Institute, a market research firm based in Shenzhen. Zhang said Future Era had received orders worth more than 200,000 yuan in its first week of operation. With the robotics industry booming, every part of the value chain holds potential While Shenzhen, in Guangdong province, is a renowned innovation hub, similar stores are in the pipeline across the country – some backed by private investors eyeing the sector's potential, others supported by local governments keen to promote emerging industries. 'It's a real business opportunity,' said Duan Lixiao, who travelled from Hainan province to visit the Future Era store. She has already secured a location in a shopping centre in Haikou, Hainan's provincial capital, hoping to bring the concept back home. 'With the robotics industry booming, every part of the value chain holds potential,' Duan said. Lin Hong, a marketing executive at a robotics company in Guangzhou, Guangdong's provincial capital, said many local governments across the country were planning to assist in the setting up of robotics stores. He said 'more than 10 local governments' had approached the company about placing its robots in stores they planned to launch, citing interest from provinces such as Sichuan, Shanxi and Hebei. Among the agreements signed by Lin's company is one with a store in Beijing that is expected to open this month. Zhang said Future Era received strong support from the district government, with officials helping it connect with robot manufacturers and facilitating collaboration. The store had signed agreements with more than 50 robot makers and component suppliers, he said. 'We're planning to open more than 50 stores like this across the country,' Zhang said. 'People from various provinces have already approached us, expressing interest in becoming franchise partners.' - SOUTH CHINA MORNING POST
