China's revived bond interest tax expected to benefit stocks, say analysts
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South China Morning Post
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In US-China battle over rare earths, developing nations are the front line
Rare earths are needed for everything from consumer electronics to electric vehicles, wind turbines and fighter jets – and China controls the supply chain. In a four-part series, we look at the race for rare earths, starting with the contest for reserves in developing countries. Former Chinese leader Deng Xiaoping once said that 'the Middle East has oil, China has rare earths'. His words carry new weight today as China's stranglehold over the rare earths supply chain gives it leverage in the trade war with the United States. China controls some 60 per cent of global mining of rare earths, over 85 per cent of their processing, and more than 90 per cent of permanent magnet production – used in everything from cars to medical devices and wind turbines. That leaves the US and other Western nations vulnerable, and many are now scrambling to diversify their supply chains away from China. Analysts say that while there are multilateral efforts under way to reduce reliance on China they are largely diplomatic, and there is a lack of investment or technical expertise to move away from Chinese supply. They also say that developing countries with rare earths are emerging as the new front line of a high-stakes contest between China and the West.
South China Morning Post
an hour ago
- South China Morning Post
Biotech successes helping Chinese intellectual property go global
As Greater China markets charge into the third quarter with the wind at their backs, there is increasing evidence that 2025 is the year Chinese intellectual property goes global. A month ago, I wrote about the peculiar appeal of the Labubu doll , which seemingly leapt out of nowhere to become a global pop culture phenomenon. This was the latest example of a successful Chinese entertainment IP – a unique asset with intangible social value – taking off. Meanwhile, China is also making huge progress in humanoid robotics , an advanced technology segment where the country is dominating. This burgeoning industry is ripe for value creation as robotics developers not only own the production and hardware assets, but also the underlying artificial intelligence IP powering their capabilities. The modern global economy has IP at its core. A 2023 analysis from the UCLA Anderson School of Business calculated that intangible assets comprised more than 90 per cent of the total assets on the balance sheets of S&P 500 companies. The market increasingly sees IP as the catalyst for further growth in Chinese stock valuations, with the latest prominent example being China's booming biotechnology sector. While Hong Kong's Hang Seng Index finally turned bullish this year and is up more than 20 per cent in the year to date, the Hang Seng Biotech Index has nearly doubled.
South China Morning Post
an hour ago
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China opens door to Brazilian coffee as US slaps on new tariff
China has authorised nearly 200 Brazilian companies to export coffee to its domestic market amid escalating trade tensions between Brazil and the United States following the imposition of a 50 per cent US tariff on Brazilian coffee. The weekend announcement, effective July 30, came just days after the United States levied the new tariff, which is set to take effect on Wednesday. The measure has sent shock waves through Brazil's coffee industry and forced exporters to seek other markets. China's move, valid for five years, is expected to increase Brazilian coffee shipments to a country where demand is rising steadily The United States is the largest consumer of coffee globally, importing 3.3 million bags of Brazilian coffee in the first half of this year, nearly 23 per cent of Brazil's total coffee exports. In contrast, China imported 530,000 bags during the same period. Although the Chinese market is still smaller, it is gaining relevance as Brazil's access to the US market faces new restrictions. Industry data shows that about 85 per cent of Brazil's 2025 production of Arabica, the variety most exported to the US, has already been harvested.
