The West is freaking out that China is making too much stuff, and it looks like China might be starting to agree
China’s exports and imports return to growth in April as demand improves; Hong Kong woos Saudi money in attempt to revive stock market
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Yahoo US
China's Ministry of Industry and Information Technology has proposed regulations on the battery industry that includes a guideline stating that lithium-ion manufacturers should avoid building factories that "simply expand production capacity". This indicates that Beijing may agree with the West's claims that China is overproducing goods and dumping them on global markets. China's overcapacity problem is not evident in all sectors, however, with the country producing too many solar panels and batteries, but not suffering from overcapacity in some of its key industries.
China’s exports and imports return to growth in April as demand improves
Associated Press
China's exports and imports grew in April, indicating that demand is improving despite an uneven economic recovery. Exports increased by 1.5% compared to the previous year, while imports surged by 8.4%. China's trade surplus also grew to $72.35 billion. However, analysts warn that the outlook is not entirely positive due to cooling consumer spending in advanced economies and diminishing tailwinds from lower export prices. Tensions between China and the US are also a concern for US companies operating in China. China has set a target of around 5% economic growth for this year, which will require more policy support, economists say.
Hong Kong woos Saudi money in attempt to revive stock market
Japan Times
Hong Kong is seeking new funds from Saudi Arabia to help offset challenges facing its stock market. The Saudi Tadawul Group and Hong Kong Exchanges & Clearing are co-organising a conference on Thursday, with Hong Kong looking to boost its status as a financial hub by attracting fresh stock listings and fund inflows. The forum will also involve an army of Saudi company officials seeking exposure to Asian investors.
Chinese cities lift curbs on buying homes as property crisis bites
Yahoo US
The city of Hangzhou in China has lifted all restrictions on purchasing homes, joining a growing list of urban areas rolling back curbs as they look to prop up the faltering property market. Many Chinese cities imposed restrictions and tough credit requirements on home purchases well over a decade ago in an effort to tamp down soaring prices and rampant speculation. But they are now reversing those policies in a bid to stem an economic slump characterised by a debt crisis among developers, low demand and falling prices.
ByteDance offloads gaming unit to Tencent-backed firm in sign of ongoing industry consolidation
South China Morning Post
ByteDance, the owner of TikTok, has sold its gaming studio C4Games to a subsidiary of China Ruyi Holdings for CNY259m ($35.8m). ByteDance acquired the studio in 2021 and the sale comes after the company sold two other gaming units to Tencent. In November 2020, ByteDance decided to shut down most of its gaming projects that had not been released online and pursued asset sales for those that had been launched. The gaming industry in China has been hit by regulatory pressure and economic headwinds, resulting in cost-cutting and lay-offs.
South China Morning Post
Hong Kong and Saudi Arabia are working towards closer collaboration in financial products allowing investors to invest in each other's capital markets. The deputy financial secretary of Hong Kong, Michael Wong Wai-lun, announced that an exchange-traded fund (ETF) that tracks Hong Kong's benchmark stock index is being developed and will be listed on the Tadawul stock exchange in Riyadh. The ETF will expose Middle East investors to corporate earnings and capital growth in China and Hong Kong. The new ETF will complement the Hong Kong-listed CSOP Saudi Arabia ETF, which tracks 56 Middle East stocks, including Saudi Aramco.
South China Morning Post
The Philippines has stated that geopolitical tensions with China have not had a significant impact on the country's economy and that the government is still open to working with Chinese investors. Tensions between the Philippines and China have escalated in recent months due to competing claims in the South China Sea. However, the country's Economic Planning Secretary, Arsenio Balisacan, said that there is no attempt to disadvantage Chinese investors and that the issues in the South China Sea have not had remarkable adverse effects on the economy. The Philippines reported first-quarter growth of 5.7%, slightly below expectations. Balisacan also noted that interest rates and sticky inflation are impacting domestic activity, with consumption growth slowing in the first quarter. However, he remains optimistic about growth prospects and expects a faster expansion in the current quarter.
Defence chief rejects China's spying accusation after flare confrontation
Australian Broadcasting Corporation
Australian Defence Chief Angus Campbell has rejected Beijing's claim that an Australian helicopter was attempting to spy on the Chinese military. Campbell insisted that the Seahawk helicopter was behaving "professionally" when it was targeted by flares. He described the incident as "unsafe and unprofessional" and encouraged all military partners to conduct themselves in a professional and safe manner. Campbell did not say whether he planned to contact his Chinese counterpart to relay Australia's concerns. The incident occurred in international waters off the South Korean coast.
U.S. sends warship through Taiwan Strait ahead of presidential inauguration
Nikkei Asia
A US warship has sailed through the Taiwan Strait, prompting a denunciation from Beijing. China claims sovereignty over Taiwan and says it has jurisdiction over the strait, but Taiwan and the US reject this and say the strait is an international waterway. US warships and patrol aircraft pass through the strait about once a month. China has said it has sent naval and aerial forces to monitor the US ship and "deal with it in accordance with the law and regulations".
Huawei’s new Pura 70 Pro smartphone uses more China-made parts, memory chip
South China Morning Post
Chinese telecoms giant Huawei is using more components from Chinese suppliers in its latest high-end smartphone, according to a teardown analysis by TechSearch International and iFixit. The analysis of the Pura 70 Pro handset found a NAND memory chip likely to have been packaged in-house by Huawei's chip unit HiSilicon. The phone also runs on Huawei's own Kirin 9010 advanced processing chipset, which was found to be similar to the chip used in the Mate 60 series. The findings indicate the progress China is making in terms of technology self-sufficiency.
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