Market China

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Excerpt from english.hani.co.kr

One of Korea’s top three shipyards, located in Geoje, South Gyeongsang Province. (Yonhap)

Reports have shown that China’s competitiveness in the shipbuilding sector has, for the first time, surpassed that of South Korea. While Korea’s shipbuilding industry is booming thanks to a string of orders for liquefied natural gas (LNG) carriers, alarm bells are ringing over China’s rising competitiveness. The alarms also serve as a warning: Measuring competitiveness by total orders or specific orders of vessels alone may be misleading.

In a report released Monday, the Korea Institute for Industrial Economics and Trade (KIET) said that South Korea had “ceded its top spot in the shipbuilding industry’s value chain competitiveness to China in 2023.”

The report concerned the lagging competitiveness of South Korea’s shipbuilding value chain and explored possible directions for South Korea’s maritime strategy going forward.

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Excerpt from freedomist.com

John Ratcliffe, the former Director of National Intelligence from 2020 to 2021 is warning the federal government about the current state of America’s patent courts, which are allowing foreign nationals to exploit American technology and sabotage American businesses.

 

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Excerpt from freedomist.com

President Joe Biden made it official on May 14, 2024 when the administration announced it would be implementing a new round of tariffs targeting Chinese goods, including electric vehicles. The tariffs affect $18 billion worth of Chinese goods.

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Excerpt from www.ndtv.com

“Warned Elon Musk” Against Picking China Over India: Entrepreneur Vivek Wadhwa

Indian-American academic, entrepreneur and author Vivek Wadhwa on Monday said that he had warned the Tesla and SpaceX CEO Elon Musk not to pick China as they would “rob him blind” and instead asked him to consider moving manufacturing to India.

Quoting the Director of Centre for Russia Europe Asia Studies, Theresa Fallon, in a post on X, who said that US and European automakers are failing in China because “they were looking only for short-term gain and transferring technology, management techniques and know-how to China,” Vivek Wadhwa said that he had “exchanged emails with Musk about the risks in China a few years ago.”

… “Elon is going to be the biggest loser here. I warned him they would rob him blind and urged him to consider moving manufacturing to India instead, where he would have dominated the market by now,” he wrote.

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Excerpt from www.deccanherald.com

Berlin: The United States overtook China as Germany’s most important trading partner in the first quarter of this year, according to Reuters’ calculations based on official data from the German statistics office.

Germany’s trade with the United States – exports and imports combined – totalled €63 billion ($68 billion) from January to March, while the figure for China was just under 60 billion euros, the data showed.

In 2023, China was Germany’s top trading partner for the eighth year in a row, with volumes reaching 253 billion euros, although that was only a few hundred million ahead of the US.

“German exports to the US have now risen further due to the robust economy there, while both exports to and imports from China have fallen,” said Commerzbank economist Vincent Stamer, explaining the first quarter shift.

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Excerpt from www.japantimes.co.jp

U.S. President Joe Biden’s bid to draw Vietnam closer as a strategic ally clashed with his desire for union workers’ votes on Wednesday as trade lawyers sparred over whether the Commerce Department should upgrade the communist-ruled country to market economy status.

The move, opposed by U.S. steelmakers, Gulf Coast shrimpers and American honey farmers, but backed by retailers and some other business groups, would reduce the punitive anti-dumping duties set on Vietnamese imports because of its current status as a non-market economy marked by heavy state influence.

Vietnam’s deepening economic ties to China loomed large in arguments on both sides of the issue at a virtual public hearing hosted by the Commerce Department as part of a review. A decision is due on July 26.

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Excerpt from www.hindustantimes.com

 

A top PR executive at Chinese internet giant Baidu apologised Thursday after videos she posted online sparked accusations of toxic and abusive management and sent the firm’s shares sliding.

Qu Jing, the vice president in charge of public relations, posted a series of clips this month on video-sharing platform Douyin describing her tough treatment of junior colleagues.

“Why do I have to consider the family of an employee?” she asked in one.

“I am not her mother-in-law!”

“If your boyfriend calls you to ask about breaking up, what does it have to do with me?” Qu demanded in one clip.

“It is not my duty to know whether you are crying or not.”

In a separate clip, Qu attacks an effigy bearing the name of Hong Kong’s South China Morning Post newspaper in an apparent protest against a negative article.

She gloats in another that, while she remembered to buy gifts for colleagues, she forgot her son’s birthday.

After TikTok’s CEO told the American congress he was no communist asset, nor was his company, a court filing by the CCP-owned company proves TikTok is, in fact, nothing but a CCP asset that operates only through CCP approval. In a court filing protesting the passage of a law that would ban the CCP-controlled app, TikTok admitted that due to the Chinese government’s direct control of its company, it couldn’t even legally sell the asset to a non-CCP entity even if they wanted to.

Michael Sobolik, a senior fellow at the American Foreign Policy Council, said of the filing, “For years, TikTok has asserted its legal and operational independence from the Chinese Communist Party. TikTok admitted as much in its federal petition against the law and said what every serious person has known for years: the Chinese Communist Party will not permit a divestment,” he continued. “That’s not a problem for the American people. That’s a problem for TikTok.”

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Excerpt from townhall.com

TikTok and its parent company ByteDance filed a lawsuit against the United States on Tuesday claiming it is “unconstitutional” for the government to force the app to be sold by its Chinese owner or be outright banned in the U.S.

In addition to the expected — yet inadequate — arguments as to why TikTok should remain under Chinese ownership and available to American users on First Amendment grounds, the complaint makes a significant admission about how valuable TikTok is to the Chinese Communist Party.

On pages 18 and 19 of the complaint, TikTok’s attorneys argue that the app’s foundational algorithm can’t be passed off to another entity to remain available in the United States…because the Chinese Communist Party won’t allow it (emphasis added):

Third, the Chinese government has made clear that it would not permit a divestment of the recommendation engine that is a key to the success of TikTok in the United States. Like the United States, China regulates the export of certain technologies originating there. China’s export control rules cover “information processing technologies” such as “personal interactive data algorithms.” China’s official news agency has reported that under these rules, any sale of recommendation algorithms developed by engineers employed by ByteDance subsidiaries, including TikTok, would require a government license. China also enacted an additional export control law that “gives the Chinese government new policy tools and justifications to deny and impose terms on foreign commercial transactions.” China adopted these enhanced export control restrictions between August and October 2020, shortly after President Trump’s August 6, 2020 and August 14, 2020 executive orders targeting TikTok. By doing so, the Chinese government clearly signaled that it would assert its export control powers with respect to any attempt to sever TikTok’s operations from ByteDance, and that any severance would leave TikTok without access to the recommendation engine that has created a unique style and community that cannot be replicated on any other platform today.

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Excerpt from amp.scmp.com

Her remarks come at a time of increased geopolitical uncertainty over a number of challenges, most notably an escalating rivalry between the US and China and the war in Ukraine.

Although economic fragmentation is not yet as severe as it was during the Cold War, Gopinath said, it carries a much greater potential cost thanks to higher global reliance on trade.

China’s share of US imports fell by 8 percentage points between 2017 and 2023 as trade and overall relations between the two countries fragmented, while the US’ share of China’s exports fell by about 4 percentage points during the same period.

Trade between blocs of countries aligned with either China or the US was also negatively affected, Gopinath said.

Between the middle of 2022 and 2023, the average weighted quarter-on-quarter trade growth between US-leaning countries and China-leaning countries fell by nearly five percentage points compared with the five-year period between 2017 and early 2022.

Similar patterns could also be observed following Russia’s invasion of Ukraine, with trade and investment between blocs falling more than trade within blocs.

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Excerpt from www.theblaze.com

 

General Motors CEO Mary Barra said that the company will push forward with its operations in China despite a whopping loss in the country in the first quarter of 2024.

Barra recently visited China and promised that GM remained committed to the market, which has been a mainstay for the manufacturer since 1997. A $106 million loss in the first quarter in China was just GM’s third quarterly loss in the far east in the last 15 years, CNBC reported, but the company announced that it expects the numbers to turn around.

GM CFO Paul Jacobson reportedly told investors that the company expects similar or slightly lower than $446 million in profit, which is what it garnered in China in 2023.

However, 2023 was the lowest year for equity income for GM in China since at least 2012, but this has come at a much smaller market share. GM’s percentage of the market has shrunk from nearly 15% down to 8.6% in the last decade, lowering expectations.

Still, 2023’s numbers were more than $230 million lower than 2022, despite only losing 1.2% of the market share in that time. Comparatively, GM’s income in China stayed relatively the same between 2014 and 2018 despite its market share dropping by about 1%.