Latest news with #Chi
16-07-2025
- Business
Faced with geopolitics and trade war, US companies in China report record-low new investment plans
WASHINGTON -- American companies in China are reporting record-low new investment plans for this year and declining confidence in profits, while uncertainty in U.S.-China relations and President Donald Trump's tariffs have become their top concerns, according to a business survey released Wednesday. The companies are also challenged by China's slowing economy, where weak domestic demand and overcapacity in local industries are eroding profitability for the Americans. 'Businesses in China are less profitable now than they were years ago, but risks, including reputational risk, regulatory risk, and political risk, are increasing,' said Sean Stein, the president of the U.S.-China Business Council, a Washington-based group that represents American companies doing business in China, including major multinationals. The survey, conducted between March and May and drawing from 130 member companies, came after the two countries clashed over tariffs and nontariff measures, including export controls on critical products such as rare-earth magnets and advanced computer chips. Following high-level talks in Geneva and London, U.S. and Chinese officials agreed to pull back from sky-high tariffs and restrictions on exports, but uncertainty persists as the two sides are yet to hammer out a more permanent trade deal. Kyle Sullivan, vice president of business advisory services at the USCBC, said more than half of the companies in the survey indicated they do not have new investment plans in China 'at all' this year. "That's a record high,' Sullivan said, noting that it is 'a new development that we have not observed in previous surveys.' Around 40% of companies reported negative effects from U.S. export control measures, with many experiencing lost sales, severed customer relationships, and reputational damage from being unreliable suppliers, according to the survey. Citing national security, the U.S. government has banned exports to China of high-tech products, such as the most advanced chips, which could help boost China's military capabilities. Stein argued that export controls must be very carefully targeted, because businesses from Europe or Japan, or local businesses in China would immediately fill the void left by American companies. Silicon Valley chipmaker Nvidia won approval from the Trump administration to resume sales to China of its advanced H20 chips used to develop artificial intelligence, its CEO Jensen Huang announced on Monday, though the company's most powerful chips remain under U.S. export control rules. While 82% of U.S. companies reported profits in 2024, fewer than half are optimistic about the future in China, reflecting concerns over tariffs, deflation, and policy uncertainty, according to the survey. Also, a record high number of American businesses plan to relocate their business operations outside of China, Sullivan said, as 27% of the members indicated so, up from 19% the year before. In a departure from past surveys, concerns over China's regulatory environment, including risks of intellectual property misuse and lack of market access, didn't make it to the top five concerns this year. That's likely a first, and not for a good reason, Stein said. 'It is not because things got dramatically better on the Chinese side, but the new challenges, often coming from the U.S., are now posing as much of a challenge,' Stein said. Almost all the American companies said they cannot remain globally competitive without their Chinese operations. A survey from the European Union Chamber of Commerce in China in May found that European companies were cutting costs and scaling back investment plans in China as its economy slows and fierce competition drives down prices.
Bangkok Post
11-07-2025
- Business
- Bangkok Post
Economic headwinds dampen outlook
Thailand's economic outlook is worsening amid rising pressure from steep new US tariffs, with business leaders warning that the country risks losing its competitive edge unless urgent policy action is taken. Hasadin Suwatanapongched, deputy secretary-general and honorary chairman of the Federation of Thai Industries, expressed concern over the US imposing tariffs of up to 36% on Thai goods, significantly higher than those applied to regional rivals. "Vietnam faces a 20% tariff, Malaysia and Japan 25%, Indonesia 32%, and South Korea 25%. Even neighbouring Laos, Myanmar, and Cambodia have secured tariff reductions," he said. "Why is Thailand still stuck at 36% after negotiations? This is a clear failure." Mr Hasadin blamed political instability for hampering the Thai negotiating team's ability to safeguard national interests. He warned that tariff disparities of up to 16 percentage points compared with Vietnam would discourage foreign investment. "If investors must choose, they will go to Vietnam or Malaysia. Major companies may relocate from Thailand. Japanese firms here may reconsider their presence," he said. Critical export sectors -- including electronics, automotive tyres, and animal feed -- are expected to suffer the most. "We cannot compete when facing 10–15% higher tariffs with the same production costs," Mr Hasadin stressed. Waning investor confidence could also impact the stock market and the broader economy. Balanced Tariffs Assoc Prof Juthathip Jongwanich of Thammasat University's Centre for Competitiveness and Development Studies (ICDS) cautioned against eliminating all import tariffs in response to US hikes, as Vietnam has done. Instead, she proposed maintaining duties within a 25–28% range to remain competitive with Vietnam and Malaysia, describing this as a balanced and sustainable approach. Her assessment, based on trade data and US policy uncertainty, noted that Washington's new tariff regime takes effect on Aug 1, leaving room for negotiation. Should US tariffs stay above 28%, Thailand may need to broaden its offer -- but not by removing all tariffs. She added that Vietnam has greater experience managing free trade frameworks, especially with the EU, whereas Thailand still enforces strict tariffs and non-tariff barriers, particularly in the agriculture sector. Deep tariff cuts could harm Thai farmers and businesses unable to adjust. She recommended boosting Thai imports of US products like defence equipment, aircraft, and natural gas as alternative bargaining chips. She also urged the government to prepare financial support for affected sectors and diversify export markets to reduce US reliance. Meanwhile, Assoc Prof Archanun Kohpaiboon of ICDS said the tariff challenge offers an opportunity to address structural issues such as foreign nominee shareholders, a breach of the Foreign Business Act. He called for reviewing outdated regulations that may discourage legitimate foreign investment and questioned the benefits of recent Chinese investments. With Thailand facing an ageing population and labour shortages, he suggested revising restrictions in certain sectors to allow greater foreign participation, while ensuring safeguards and job creation. Trade Sentiment Slips The business sector's concerns were reflected in a mid-June survey by the Thai-Chinese Chamber of Commerce, according to its president, Narongsak Putthapornmongkol. Among 480 business leaders surveyed, 39% said the tariff measures were more damaging to trade than the Covid-19 pandemic, while 26% deemed the impact significantly worse. The survey revealed 45% had already witnessed a serious trade slowdown due to tariffs, 36% reported minor impacts, and only 8% saw improvements. Uncertainty surrounds the 90-day US negotiation window that ended on Wednesday. Only 15% of respondents believed a final deal was reached with China, while 14% expected protracted talks with most countries. On July 3, the US struck a final deal with Vietnam, imposing a 20% tariff in exchange for Vietnam not taxing US imports. Thai businesses proposed three key measures to improve negotiations: reducing tariff and non-tariff barriers, allowing US agricultural imports such as soybeans and maize, and introducing legal safeguards against re-export fraud. Additional recommendations included boosting imports of energy and aviation products. The survey identified vulnerable sectors including automotive, food and seafood, tourism, electronics, steel, and energy, he said. Concerns also centred on a 32.7% drop in Chinese tourists in the first five months of 2025, with over half expecting numbers to remain low for the year. The influx of redirected Chinese goods intensifies local competition, and Thailand risks becoming a target if used as a manufacturing base for Chinese exports to the US. GDP growth forecasts are muted, with 78.5% expecting growth below 1.8% in 2025. Respondents urged the government to launch tourism stimulus packages, explore new export markets, conclude US trade talks, and implement financial relief. Despite challenges, Thai–Chinese trade grew 18.69% year-on-year in early 2025, though Thailand ran a trade deficit of 799 billion baht. Asst Prof Wiwat Chankingthong of Hatyai University presented findings from the June 2025 Southern Thailand Confidence Index, underscoring challenges in tourism and exports. He attributed export declines to weakening demand from China, the US, and Europe, alongside stiff competition from lower-cost producers like Vietnam, Indonesia, and India -- countries that benefit from more robust state support compared to Thailand's limited, reactive assistance. The tourism sector has also suffered, with fewer visitors from China, Europe, and Asean amid rising safety concerns, including scams and fraud targeting tourists, he said. Asst Prof Wiwat noted the country's economy has deteriorated since mid-2024, with declining investment and purchasing power, and a sharp drop since April 21, 2025. Both public and academic sectors agree on appointing a new finance minister -- knowledgeable and untainted by political or business interests -- to address the crisis, he said. He stressed broad economic transformation, focusing on agriculture, Thailand's economic backbone. Collaboration between farmers and the government is needed to modernise agriculture through processing that preserves yields, adds value, and stabilises prices. Citing durian oversupply as an example, he emphasised that strengthening the grassroots economy is essential for national recovery and equitable income distribution. "The agricultural sector is the backbone of the country," Asst Prof Wiwat said. "Revitalising the grassroots economy through modernisation, value addition, and price stability is essential not only for rural livelihoods but for the broader national recovery." With global uncertainties persisting, the consensus is clear: Thailand's future competitiveness hinges on visionary leadership that can navigate trade negotiations effectively, implement strategic reforms, and restore investor and consumer confidence. Without urgent and coordinated government intervention, the risk of economic stagnation and lost opportunities will deepen, he noted.
The Star
09-07-2025
- Business
- The Star
US tariffs pose danger to Asean countries
The United States has announced new tariffs for over half of the member states of the Association of Southeast Asian Nations, China's largest trading partners, which analysts said is a calculated escalation of Washington's efforts to reconfigure global supply chains away from Beijing. The prospect of higher US tariffs could translate into higher prices for US consumers already grappling with persistent inflation and would undermine the stability of global supply chains, they added. US President Donald Trump on Monday set out plans for a 40 percent tariff on goods from Myanmar and Laos, a 36 percent tariff on goods from Thailand and Cambodia, a 32 percent tariff on Indonesia, and a 25 percent tariff on goods from Malaysia. "These tariffs appear designed to make it economically disadvantageous for these Southeast Asian countries to maintain deep supply chain links with China, forcing a decoupling by increasing the cost of their exports to the US market if Chinese inputs or intermediate goods are involved," said Chen Wenling, former chief economist at the China Center for International Economic Exchanges. The new tariffs will take effect on Aug 1 unless these countries can broker new trade deals with the White House. And Trump threatened to raise rates even higher if any of the countries sought to evade the US duties by shipping through other nations. Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said, "Additional tariffs will inevitably impact everyday affordability for US families." "Moreover, they will disrupt global supply chains, compounding the challenges facing the already fragile global economic recovery," Zhou said. According to Trump, there will be no tariff if these countries or companies within the countries decide to build or manufacture products within the US, and that "in fact, we will do everything possible to get approvals quickly, professionally and routinely — in other words, in a matter of weeks". Earlier this month, Washington struck a deal with Vietnam, an ASEAN country that would see its exports to the US face a 20 percent tariff — lower than the 46 percent Trump had threatened in April. But Vietnamese goods would face a higher 40 percent tariff "on any transshipping", when goods shipped from Vietnam originate from another country, such as China. Guan Jian, a partner at Beijing Grand Win Law Firm, said the US approach toward Vietnam, imposing steep tariffs on goods suspected of being transshipped from another country, including China, could very well become a standard playbook in its future trade negotiations. Chen, the former chief economist at the China Center for International Economic Exchanges, said that China has forged tightly knit industrial and supply chain ties with ASEAN countries, which have been China's top trading partners for five consecutive years. In some ASEAN nations, over 70 percent of the intermediate inputs in their manufacturing sectors are sourced from China. "The numbers tell the story. It's not easy for Washington to undermine the market-driven integration," Chen said. Only through collective defense of integrated supply chains and trade stability can China and ASEAN countries counter the protectionist and bullying acts and achieve shared prosperity, Chen added. The Ministry of Commerce also warned on Thursday that China firmly opposes any attempt to reach a deal with the US at the expense of China's interests, and would take countermeasures to safeguard its interests. The erratic nature of US tariff policies will undoubtedly cast some pressure on China's foreign trade sector for some time to come. Jiang Na, a manager at Zhejiang Pros-Forest Logistics, a Ningbo-based freight forwarder, said, "This policy has brought a certain level of uncertainty to our business, with around 10 percent of our operations currently affected." "We will continue to closely monitor the development of this policy, promote supply chain diversification and reduce risks for our clients and enhance our resilience," Jiang said. According to statistics from Ningbo Customs, in the first five months of this year, Ningbo, a foreign trade hub in eastern China, saw its exports to ASEAN economies reach 85.59 billion yuan ($11.93 billion), an increase of 18.5 percent year-on-year. - China Daily/ANN
Egypt Independent
07-07-2025
- Business
- Egypt Independent
China sidesteps question on TikTok after Trump says close to deal
Hong Kong CNN — China's government on Monday sidestepped a question on US President Donald Trump's recent claim that he 'pretty much' has a deal with Beijing to bring TikTok into American ownership and that talks with China over the popular short-video app could begin early this week. TikTok's Chinese parent company ByteDance is under pressure to spin off the short-video app's US operations by September 17 or face a ban in the United States. Last year, then President Joe Biden signed a sale-or-ban law, requiring ByteDance to divest the app to an American owner over national security concerns. Despite an original January deadline, Trump has repeatedly delayed enforcement of the law. 'China has reiterated its principle and position on issues related to TikTok on multiple occasions,' China's Foreign Ministry spokesperson Mao Ning said on Monday in response to a request for an update on the latest TikTok talks, without providing further details. When previously asked about the TikTok deal, the Foreign Ministry has urged the US to provide an 'open, fair, just and non-discriminatory business environment' for Chinese businesses, and said that acquisition of businesses should be 'independently decided by companies in accordance with market principles.' The Chinese government has given little indication that it would approve a forced sale. In early 2023, a Commerce Ministry spokeswoman said in the government's first direct response to the matter that China would oppose any forced sale of TikTok, citing how a sale or divestiture of the app would involve 'exporting technology' and had to be approved by the Chinese government. TikTok's 'algorithm' is widely seen as the app's secret sauce behind its explosive popularity. In the US, TikTok boasts over 170 million monthly active users, according to the company early last year. Over 60 percent of American teens and about a third of American adults use the social media platform, according to a Pew Research Center study, for news, entertainment, or even to earn a living. On Friday, Trump told reporters aboard Air Force One that the US 'pretty much' has a deal on the sale of the app, though he said he's 'not confident' China would approve the deal. 'I think we're going to start Monday or Tuesday…talking to China perhaps President Xi or one of his representatives, but we pretty much have a deal on TikTok,' he said, referring to Chinese leader Xi Jinping. He added the deal would 'probably' have to be approved by China. CNN has reached out to ByteDance and TikTok for comment. In late June, Trump said that there was a buyer for TikTok, teasing an announcement in two weeks. 'It's a group of very wealthy people,' he said on a Fox News program then, without providing more details. A deal that would transfer control of the app's US operations to American ownership had been on the horizon. But Trump's announcements of 'reciprocal' tariffs that brought levies on Chinese imports to the US to 54 percent on April 2 prompted China to pull out of the deal, CNN reported earlier. Based on the law, ByteDance can own no more than 20 percent of the platform in the final deal, and the app's US operations cannot coordinate with ByteDance on the app's algorithm or data-sharing practices. Alex Capri, a lecturer at the Business School of the National University of Singapore, told CNN that he doubts Beijing would approve the sale. 'Even if Beijing would choose to overlook the recent tariff hikes and ratcheting up of US export controls on Chip technologies, they still wouldn't grant export licenses for the algorithms,' he said. On Sunday, American tech media The Information reported that TikTok is building a new version of its app for US users to be launched ahead of the September deadline. Users will need to download the new app to continue using its platform while the existing app will shut down by March next year, it said.
Indian Express
20-06-2025
- Politics
- Indian Express
Derek O'Brien writes: Unseeing the Northeast
'Even Ganesh idols come from abroad, small-eyed Ganesh idols whose eyes don't even open properly' — Prime Minister Narendra Modi, May 27. If the Prime Minister of India can propagate a hurtful stereotype against the 4.5 crore people living in Northeast India, are you surprised that fellow Indian citizens in the Northeast are labelled? Many have borne the brunt of racial prejudice and violence for decades. In 2014, the Bezbaruah Committee was formed after a teenage student from Arunachal Pradesh was assaulted and killed in Delhi. The Committee quoted a research report which found that nine out of 10 people from the Northeast faced racial discrimination in Indian metros. Another report quoted revealed that two out of three women from the Northeast frequently suffered various forms of discrimination. The most recent instance was the tragedy of the Meghalaya honeymoon which dominated news cycles till the heartbreaking catastrophe in Ahmedabad took over. Unsubstantiated facts and fabricated reports started doing the rounds on social media, running down a state which has so many natural gems: Elephant Falls, Umiam Lake, Double Decker Living Root Bridge, Mawsmai Cave and more. There was a concerted campaign to denigrate not just Meghalaya, but the whole of Northeast India. Vile messages, from targeting dietary habits to social customs, physical appearance to language, nothing was off bounds. There is little official data in the public domain to showcase the important role played by people from Northeast India, especially in the hospitality, aviation, and health sectors. Data from National Sample Survey Office (NSSO) in 2020 suggests that one out of four women migrants from Northeastern India are engaged in the hospitality sector. Five years on, this figure might well be even higher. It also reveals that most are in jobs that are low-paid, informal, and devoid of social security benefits. I have an old connection and a special fondness for the Northeast. In 1991, I quit my job in advertising and started hosting quiz shows. During the first few years, these quizzes were held in cities across the Northeast: Guwahati, Shillong, Kohima, Imphal, Dimapur, and many more. These events were organised to promote a brand of instant noodles, which had a large market share in those parts. My professional fee for each show was Rs 2,500. Flights, trains, buses, mostly car rides — this was a beautiful opportunity to get to discover so much. To learn. To understand. To meet folks who were always welcoming. So it really stings to see people typecasting citizens from the Northeast. While writing this piece, I spoke to Tonshimla Leisan, a 30-year-old woman from Manipur, working as cabin crew in a reputed airline. Here is what she told me, 'A year ago, a group of youngsters kept looking at me and my mother in the Delhi Metro and kept laughing and I overheard them saying 'Chinese, Chi***es'. In the workplace, making a mockery of our unique names by our colleagues is another challenge we have to face. Many passengers motivate us for our hardworking and resilient nature, but others often try to put us down'. Two of the cabin crew members on Air India flight AI171, Lamnunthem Singson and Kongbrailatpam Nganthoi Sharma, were from Manipur. Lamnunthem from the Kuki-Zo community, Kongbrailatpam from the Meitei community. It did not matter who was Kuki and who was Meitei. Manipur was united in grief. Bias and othering of residents of the Eight Sisters (states) increased manifold during the pandemic. A study by the Centre for Criminology and Victimology at the National Law University, Delhi, commissioned by the Indian Council of Social Science Research (ICSSR) in 2021 on racial discrimination against people from the Northeast found that 'Northeast India seamlessly fits Indians' imagination of a Chinese person' and that they 'faced an increased number of acts of hate and prejudices against them'. In the recent past, Manipur was discussed twice in Parliament. Once, when opposition parties compelled the Union government to discuss the issue by moving a No Confidence Motion in 2023, and once, through the night in April 2025. Here is what Amit Shah, the Union Home Minister, said on the floor of the House in April this year: 'President's Rule was imposed on 13 February 2025, zero violence in November, zero violence in December, zero violence in January, zero violence till 13 March and zero violence since then till today. So we should not try to create misconceptions.' Soon before the Home Minister spoke, here is what your columnist said in the Rajya Sabha: '3,80,000 kilometres. In the last 22 months, it is the distance the Prime Minister of India has travelled nationally and internationally. That is also the distance from Planet Earth to the Moon! But the Prime Minister could not take a flight to Manipur, just 2,400 kilometres away. We are discussing this in Parliament in the dead of night — at three in the morning. No TV channels, no prime time. Look at Manipur straight in the eye during the day.' The writer is MP and leader, All India Trinamool Congress Parliamentary Party (Rajya Sabha). Additional research: Ayashman Dey
