China foreign investment control

Share to Twitter Share to Linkedin Topline China on Monday announced plans to restart military drills around Taiwan in response to a U.S. Congressional delegation’s weekend visit to the island that Beijing considers part of its territory. Key Facts In an official statement , the Chinese military’s eastern theater command said it has organized a combat readiness patrol and exercises in the “sea and airspace around Taiwan.” The intent behind the drill is to serve a deterrent to “continued political tricks” by the U.S. and Taiwan to “undermine peace and stability” in the region, the statement adds. China’s defense ministry also angrily reacted to the U.S. delegation’s visit, stating that it “flagrantly violates” China’s sovereignty and the one-China principle—which Washington insists it is continuing to adhere to. The extent or duration of these new drills—which come less than a week after China ended its largest military drill … [Read more...] about China Declares Fresh Military Drills Around Taiwan After More U.S. Lawmakers Visit

- A + A LONDON (Aug 15): The safe-haven US dollar rose on Monday (Aug 15), after a new batch of disappointing data from China bolstered global recession worries, while the yuan weakened following a People's Bank of China (PBOC) surprise rate cut. Chinese industrial output, retail sales, and fixed-asset investment all fell short of analyst estimates on Monday, as a nascent recovery from draconian Covid-19 lockdowns faltered. "Of course, bad data from China also weighed on recession worries for the rest of the world," said Ipek Ozkardeskaya, a market strategist at Swissquote. That pushed down the euro against the greenback, she added. The dollar was also supported by US Federal Reserve policymakers' hawkish comments in response to early signs that US inflation may have peaked. Richmond Fed president Thomas Barkin told CNBC last Friday that he would like to see inflation running at the Fed's 2% target for "some time" before stopping rate hikes. "The euro is slowly … [Read more...] about Dollar gains on safety flows after China data, yuan eases on rate cut

- A + A HONG KONG/BEIJING (Aug 15): China's economic slowdown deepened in July due to a worsening property slump and continued coronavirus lockdowns, with an unexpected cut in interest rates unlikely to turn things around while those twin drags remain. Retail sales, industrial output, and investment all slowed and missed economists' estimates in July. The surveyed jobless rate for those aged 16-24 climbed to 19.9%, a record high and headache for the Communist Party as it gears up for a major congress in coming months that is expected to give President Xi Jinping a precedent-defying third term in power. "July's economic data is very alarming," said Raymond Yeung, Greater China economist at Australia & New Zealand Banking Group Ltd. "Authorities need to deliver a full-fledged support from property to Covid policy in order to arrest further economic decline." The data suggest a crisis of confidence among Chinese businesses and households, adding another … [Read more...] about China shocks with rate cut as data show ‘alarming’ slowdown

- A + A HONG KONG (Aug 15): The decision by five Chinese state-owned companies to leave US stock exchanges adds to scepticism that authorities in both countries can reach an agreement on disclosure rules, with analysts seeing state-controlled airlines as the next potential group to depart, possibly followed by internet giants. China and Hong Kong are the only jurisdictions worldwide that do not allow inspections by the US Public Company Accounting Oversight Board, with Beijing officials citing national security and confidentiality concerns. With a deadline for delistings set for 2024 for those firms that are not compliant, US lawmakers are considering passing a bill to bring it forward to next year. The announcement on Aug 12 by firms including China Life Insurance Co and PetroChina Co could "soon" be followed by China Eastern Airlines Corp and China Southern Airlines Co, according to Redmond Wong, a Greater China market strategist at Saxo Bank. Shares of those … [Read more...] about China’s airlines could join the multibillion-dollar exit from US stock markets

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 12, 2022. REUTERS/Staff LONDON  – Global shares struggled to advance on Monday while investors digested news of an unexpected cut in Chinese interest rates as data pointed to faltering growth in the world’s second largest economy, sending oil prices nearly 2 percent lower. Weaker U.S. stock index futures also weighed on sentiment, while a steadier dollar knocked gold. The MSCI all country index was barely firmer, a month-long advance having whittled away the benchmark’s decline for the year to about 13 percent. China’s central bank cut key lending rates to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing’s zero-COVID policy and a property crisis. Until now, investors have been grappling with how much further central banks in the United States and Europe would hike rates when they meet next month. … [Read more...] about Stocks struggle as China rate cut sends oil tumbling

A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here . You can listen to an audio version of the newsletter by clicking the same link. London (CNN Business) The most powerful business lobby in the United States is not a fan of the landmark heath care and climate package President Joe Biden is expected to shortly sign into law. "Business Roundtable opposes the 'Inflation Reduction Act,' which, among other things, includes tax provisions that would undermine American economic growth and competitiveness," the group said in a statement shortly before the measure was passed by the Senate. But analyses by Wall Street institutions published over the past week found that the impact on corporate earnings would likely be limited, though some sectors could be more affected than others. Breaking it down: The two provisions in focus are a 15% minimum corporate tax and a 1% tax on … [Read more...] about New business taxes are coming. Wall Street isn’t worried

THE DOLLAR’S DEMISE? … WSJ : Saudi Arabia Considers Accepting Yuan Instead of Dollars for Chinese Oil Sales Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in yuan, people familiar with the matter said, a move that would dent the U.S. dollar’s dominance of the global petroleum market and mark another shift by the world’s top crude exporter toward Asia. The talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom, the people said. The Saudis are angry over the U.S.’s lack of support for their intervention in the Yemen civil war, and over the Biden administration’s attempt to strike a deal with Iran over its nuclear program. Saudi officials have said they were shocked by the precipitous U.S. withdrawal from Afghanistan last year. EXAMINER : In blow to Biden, Saudi … [Read more...] about Editor Daily Rundown: Will Americans Face The Dollar’s Demise?

State-controlled Baowu, the world’s biggest crude steel producer, is likely to acquire controlling stakes in some integrated production lines owned by Tsingshan at Indonesia Morowali Industrial Park in Central Sulawesi province, the people familiar with the negotiations said. - A + A (Aug 15): Tsingshan Holding Group Co, the nickel giant owned by billionaire Xiang Guangda, is in advanced talks to sell some of its stainless-steel assets in Indonesia to China Baowu Steel Group Corp as part of a strategic review, according to people familiar with the negotiations. State-controlled Baowu, the world’s biggest crude steel producer, is likely to acquire controlling stakes in some integrated production lines owned by Tsingshan at Indonesia Morowali Industrial Park in Central Sulawesi province, the people said, asking not to be identified discussing confidential information. The talks started in April, and the assets for sale include production plants of stainless steel … [Read more...] about Billionaire behind big nickel short plans to sell steel assets

(CNN) The House of Representatives voted Friday to pass Democrats' $750 billion health care, energy and climate bill, in a significant victory for President Joe Biden and his party. The final vote was 220-207, along party lines. Four Republicans did not vote. Now that the Democratic-controlled House has approved the bill, it will next go to Biden to be signed into law. Final passage of the bill marks a milestone for Democrats and gives the party a chance to achieve long-sought policy objectives ahead of the upcoming midterm elections. It comes at a critical time as Democrats are fighting to retain control of narrow majorities in Congress. The sweeping bill -- named the Inflation Reduction Act -- would represent the largest climate investment in US history and make major changes to health policy by giving Medicare the power for the first time to negotiate the prices of certain prescription drugs and extending expiring health care subsidies for … [Read more...] about House passes Democrats’ health care and climate bill, clearing measure for Biden’s signature

BIDEN SHOULDERS THE BLAME… ‘When Will This End?’: Sen. Manchin Goes After Biden Admin Over Inflation Democratic West Virginia Sen. Joe Manchin blamed the Biden administration for record-high inflation Tuesday as the president and his staff continue to claim that it is Russian President Vladimir Putin’s fault. “Inflation is a tax and today’s historic inflation data tells another chilling story about how these taxes on Americans are completely out of control,” Manchin said in a statement. “When will this end? It is a disservice to the American people to act as if inflation is a new phenomenon,” the senator continued. “The Federal Reserve and the Administration failed to act fast enough, and today’s data is a snapshot in time of the consequences being felt across the country. Instead of acting boldly, our elected leaders and the Federal Reserve continue to respond with half-measures and rhetorical failures searching for where to lay the blame.” … AND THE BIRD POOP … … [Read more...] about Editor Daily Rundown: Vulnerable Dems Start To Sweat And Abbott Sends Illegals To Washington