Latest news with #ChinaPolicy
South China Morning Post
3 days ago
- Business
- South China Morning Post
Trump is right to reverse Biden's failed curbs on chips to China
China policy – or for that matter any policy – coming out of the Donald Trump White House is not usually known for being the product of considered thought and deliberation. Advertisement But allowing China to resume buying more legacy chips other than the most advanced ones may be its most rational and defensible yet. Negotiations after Geneva and London led to China loosening export controls on rare earths and the US allowing chipmakers such as Nvidia to resume selling its H20 artificial intelligence (AI) chips to China. That's usually interpreted as a quid pro quo. However, it's clear Washington also thinks it's good policy as well as good for business. H20 was tailor-made for the China market when the US started imposing chip curbs. But it eventually fell under expanding US restrictions covering even legacy ones. At one time, Gina Raimondo, Joe Biden's commerce secretary, boasted that she would tighten the curbs every time a firm like Nvidia tried to get around them. But it soon became clear that the curbs weren't working. First, the squeeze actually made China move quickly to refashion its entire chipmaking industry. When Raimondo was making an official visit to Beijing in the summer of 2023, Huawei released its Kirin 9000s chip for its Mate 60 smartphones, using China's SMIC 7nm node. That was a clear challenge to Raimondo and her boss at the White House. Advertisement Soon, articles questioning the effectiveness of the chip curbs were appearing in mainstream American media, including Foreign Affairs, the semi-official publication of the US foreign policy establishment.
Telegraph
05-07-2025
- Business
- Telegraph
Starmer's Government is grossly naive about the threat posed by China
The Labour government's China policy is a shambles. It did not list China as a top threat under its new foreign-influence rules – even though the government admits that China has undermined Britain's economic security and engaged in espionage and acts intended to undermine democracy. The government's failure to apply these rules means that China, and China-controlled entities, do not have to register their activities with the British government. Those who lobbied against designating China as a top-tier threat argued that it would have a chilling effect on closer economic ties. The China lobby carried the day. It's part of a pattern that sees London determined not to offend China ahead of Keir Starmer's rumoured trip to Beijing later this year. 'China will continue to play a vital role in supporting the UK's secure growth,' David Lammy, the foreign secretary, said last week in a speech announcing the country's new engagement policy, the China Audit, tucked inside the UK's National Security Strategy. The government seems set on emulating the 'golden years,' when David Cameron and China's leader Xi Jinping shared a pint at a British pub, even as the danger posed by China grows more pronounced. 'Cooperate where we can, compete where we need to, and challenge where we must,' coos Labour, but there's little challenge. Why has Labour gone off the rails with its China policy? Starmer's background as a human rights lawyer and Labour's historical concern for human rights have fallen victim to a mistaken belief that China will somehow save the British economy. Starmer is right to focus on economic growth. But he's looking for it in the wrong place. Despite being the world's second-largest economy, China registers below France as a British trading partner, and remains an insignificant investor. China dominates trade between the two countries, with its almost £70 billion exports to Britain, more than double the £29.7 billion Britain sends to the People's Republic. Britain's exports to China fell by £3.8 billion, or 12 per cent, in 2024 and accounted for only 3.4 per cent of the country's shipments abroad. The EU and US made up 63.8 per cent of the total. The investment picture is even less promising, with Sino-British investments well under one percent of total investments. With its economy faltering under a sustained property crash, China hardly seems like the market of the future, notwithstanding the boasts of Rachel Reeves, who says she signed deals during a trip to Beijing in January that would bring an additional £600 million in benefits to Britain over the next five years. Britain has proven unwilling or unable to hold China to account for breaching its treaty obligations under the Sino-British Joint Declaration. Britain handed Hong Kong to China in exchange for a promise that the colony would enjoy its tradition of freedom and would be protected by the common-law system. China shredded that agreement. In the five years since Beijing imposed a vague and sweeping National Security Law on the city, nearly 2,000 people have been jailed on political charges. Newspapers have been forcibly shuttered, and the last remaining pro-democracy party this week announced it has been forced to disband. Jimmy Lai, a newspaper publisher and British citizen, remains in solitary confinement in Hong Kong, jailed for more than 1,600 days because of his commitment to free speech and his desire to uphold the values that Britain bequeathed to its former colony. British diplomats have not even been able to meet with Mr Lai to provide consular access. In London, officials prepare to approve a mega-embassy, China's largest diplomatic outpost in Europe, despite opposition ranging from London residents to US politicians. The irony is that this will do little for the economy all while undermining the very national security that it's designed to protect. During her trip to Beijing in January, Rachel Reeves published an opinion piece in The Times titled, 'Choosing not to engage with China is no choice at all.' That's setting up a strawman. No one is suggesting that engagement with China should be cut off. But engagement should uphold the British values of freedom, liberty, and the rule of law rather than rewarding China for its lawless behaviour.
Reuters
18-06-2025
- Business
- Reuters
China's big feed shift to curb soybean imports, strain small farmers
BEIJING/SINGAPORE, June 18 (Reuters) - China's move to curb the use of soymeal in animal feed to reduce its dependence on imports is feasible but will be costly and technically challenging for the smaller farmers who account for one-third of Chinese pork production, industry experts say. In April, China announced a plan to lower the soymeal content in animal rations to 10% by 2030, down from 13% in 2023, as the ongoing trade war with the U.S. adds to Beijing's urgency to bolster food security. In 2017, soymeal accounted for 17.9% of Chinese animal feed, according to its agriculture ministry. If successful, China could cut annual soybean imports by roughly 10 million metric tons, equivalent to half of the $12 billion in U.S. soybean purchases China made in 2024, according to Reuters calculations and two analyst estimates, crimping demand from farmers in the U.S. and top supplier Brazil. While leading swine breeders in China have reduced soymeal use and can make further cuts by using alternative protein sources, small producers are likely to struggle with cost constraints and a greater sensitivity to impacts on animal growth, farmers, nutritionists, and analysts said. China is home to half the world's pigs. "There is a significant habitual preference among smallholders for traditional soymeal-based formulations, largely due to familiarity, trust, and perceived reliability," said Matthew Nicol, senior analyst at research firm China Policy. "Larger firms will move quickly, while smaller producers may lag or even face setbacks," he said. Soybeans are crushed in China to make cooking oil and meal, a relatively cheap and protein-rich ingredient used to fatten pigs, poultry and cattle. Soymeal is valued in feed for its optimal amino acid profile and compatibility with energy-rich grains such as corn and wheat. China, by far the world's top soybean importer, has reduced its reliance on U.S. supplies since the trade war that began during President Donald Trump's first term. China buys roughly 20% of its soybeans from the U.S., down from 41% in 2016, but still accounts for nearly half of U.S. exports of the oilseed. Already, China's use of soymeal is lower than in some regions. Hog rations in the United States are estimated to be around 15% to 25% soymeal as alternative protein sources like the corn-ethanol byproduct distillers grain and synthetic amino acids have displaced soymeal in rations at times, said Hans Stein, a swine nutritionist at the University of Illinois. Southeast Asia uses about 25% for poultry and 20% for swine, said Basilisa Reas, Manila-based regional technical director at the U.S. Soybean Export Council. By comparison, China's top hog breeder Muyuan Foods ( opens new tab cut soymeal use to 5.7% of its feed mix in 2023 from 7.3% in 2022, while Wens Foodstuff ( opens new tab reported an average soybean meal inclusion rate of 7.4% in its compound feed in 2021, according to company statements and government documents. However, smaller Chinese producers who raise 32% of the country's pigs, 63% of beef cattle and 12% of broilers typically lack the capital, technical knowledge and access to precision feed tools to cut soymeal use, analysts and nutritionists said. Data from pig-farming platform shows Chinese family farms typically use 15% to 20% soymeal. A veteran pig farmer surnamed Wang, who raises 200 to 300 pigs in northern China's Shanxi province, uses 18% soymeal in his sow feed and believes a lower-soymeal diet would slow weight gain and prolong the production cycle. "With high-soymeal diets, I can feed less," he said. "With low-soymeal feed, I need to feed more - or the pigs get too thin." Soymeal replacements typically involve a mix of protein substitutes such as rapeseed meal, palm kernel meal, rice bran, and fish meal or are supplemented with synthetic amino acids, Reas said. In its April announcement, China's agriculture ministry encouraged alternatives such as synthetic amino acids, fermented straw, high-protein corn and non-grain proteins including microbial protein, insect protein and kitchen waste. It targets non-grain protein production topping 10 million tons by 2030. Since the first Trump administration trade war, China has also been promoting "low-protein feed technology," which typically reduces soymeal reliance by supplementing animal diets with synthetic amino acids, especially among large-scale firms. Muyuan, for instance, is collaborating with Westlake University in Hangzhou on synthetic biology aimed at "zero-soy" pig farming. However, synthetic amino acids can only partially replace natural protein and cannot fully meet animal digestive requirements, industry experts said. Beijing is also backing high-protein corn, with about 667,000 hectares planted. The variety contains over 10% protein, up from the standard 8%. Insect protein is also gaining ground: black soldier fly farms in Shandong and Guangdong provinces produce 100,000 tons of feed annually, currently being tested in poultry, pig, and aquaculture diets, according to the Guide to Chinese Poultry, an agriculture ministry-backed journal. Most alternatives are either more expensive or in early development. In late May, soymeal in eastern China cost 66 yuan ($9.19) per unit of protein - cheaper than lysine, a synthetic amino acid supplement used to balance animal feed, at 79 yuan per unit, and corn protein at 69 yuan, according to a Shanghai-based trader. "Chinese farming operations are ultimately going to prioritise profitability," said Even Rogers Pay, agriculture analyst at Trivium China. "As long as soymeal remains the best option in terms of price and livestock outcome, it will retain market share." ($1 = 7.1810 Chinese yuan renminbi)
Forbes
29-05-2025
- Business
- Forbes
China Market Update: Stocks Celebrate Free Markets After Tariff Court Loss
CLN KraneShares Li Auto (LI US, 2015 HK) reported Q1 financial results after the Hong Kong close. According to management, Q1 is 'typically a seasonally slow period for auto sales'. Asian equities cheered the Court of International Trade's decision that President Trump's use of the International Emergency Economic Powers Act of 1977 was not legal. Japan, Hong Kong, and South Korea outperformed, Taiwan and the Philippines underperformed, and Indonesia was closed for Ascension Day, a major Christian holiday commemorating Jesus Christ's ascension into heaven. The Trump Administration is appealing the decision and could implement tariffs under Section 301 of the Trade Act of 1974, as he did in his first term. It does highlight the ability to challenge DC in the courts, as we saw with TikTok. We'll enjoy the moment while it lasts, though one would hope 1600 Pennsylvania Avenue notices the strong market response. The Financial Times, which clearly receives Trump 'leaks' over the Wall Street Journal, reported 'the US Department of Commerce had told so-called electronic design automation groups – which include Cadence, Synopsys and Siemens Eda – to stop supplying their technology to China' according to 'several people familiar with the move'. Cadence fell by 10.67%, destroying $9.411B of investor capital based on their market cap decline, while Synopsys fell by 9.64%, destroying $7.381B of investor capital. The Administration's foreign student visa ban has evolved into a China student visa ban based on comments from Secretary of State Rubio. All pressure points are being applied to China trade negotiations, though President Trump's June 14th and President Xi's June 15 birthdays are coming, which many have speculated would result in a meeting. Hong Kong growth stocks, other than electric vehicles and hybrids, which continue to face competition concerns, responded with a rip in response led by Meituan, which gained +6.62% on strong liquor sales at the start of the 618 e-commerce event, Tencent, which gained +0.89%, and Alibaba, which gained +2.07%. Meanwhile, Xiaomi fell -0.10%, CATL fell -1.09%, and BYD fell -0.25%. gained +4.19% on a partnership with popular app provider Xiao Hong Shu, commonly known as Little Red Book. Zhongan Online P&C Insurance +31.56% bringing recent gains to over +70% following Hong Kong passing a stablecoin Bill as the company is 'Hong Kong's first digital bank to provide reserve-banking service for stablecoin issuers' according to Bloomberg. As one of their largest ten shareholders, we'll take it! Again, this proves how hard it is to pick the winners. Healthcare and the Apple ecosystem stocks Sunny Optical and AAC Technologies ripped higher on the tariff news by +4.54% and +3.11%, respectively, while Wuxi Biologics gained +10.04%, and CSPC Pharmaceuticals +11.73% after strong Q1 results. XPeng bucked the downward trend for EV stocks, gaining +5.17% after releasing a new autonomous driving feature. The tariff news did something the government has not been able to accomplish: raise the Mainland markets! Technology and growth stocks led the way higher versus value plays, as banks slipped. The Hang Seng Index is well above its Liberation Day Gap, Shanghai is just above it, Hang Seng Tech, and Shenzhen closed right at it. Hopefully, a little positive momentum allows for another push higher. A Mainland media source reported that fifty cities announced home purchase subsidies, including Hefei, Taizhou, Jiangsu, Foshan, Lanzhou, and Wuhan. What is interesting is that several cities are providing subsidies for families with two or three children. In Wuhan, families with two children receive a discount of RMB 60,000 and those with three children a discount of RMB 120,000. An incentive to have more kids while addressing the housing crisis. Two birds, one stone! Interesting, right?! Random thought: If the US government implemented tariffs due to the national crisis caused by the trade deficit, shouldn't there be a similar response to the US government's budget deficit? Live Webinar Join us Friday, May 30, at 11 am EDT for: Innovation In Hedged Equity - With Hedgeye's CEO Keith McCullough Please click here to register New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares
South China Morning Post
27-05-2025
- General
- South China Morning Post
Will Trump's China policy become more unpredictable after national security shake-up?
Donald Trump 's shake-up of the US National Security Council may be a sign he is increasingly relying on his instinct over expert advice, potentially increasing the unpredictability in Washington's approach to China, diplomatic observers have said. The shake-up could also be 'bad news' for Taiwan , which may find it harder to speak to key people in the White House, they added. The White House dismissed around 100 staff from the council last week – many from the China team – as part of Trump's wider overhaul of the federal government. The NSC swelled to over 300 staff under Joe Biden, but Trump's eventual goal is to reduce it to 50. Earlier this month national security adviser Mike Waltz was removed from his post after sharing classified information through the messaging app Signal and reportedly disagreeing with Trump over some aspects of foreign policy. Alex Wong, another known China hawk and former deputy national security adviser, has also been reassigned to another role, according to The Washington Post.
