Trump says he will ‘100%’ get jailed Hong Kong ex-tycoon Jimmy Lai out of country；China detains South Korean on suspicion of espionage

Xi Is Overcoming His Dislike of the Stock Market

Welcome to this issue of The China Brief. Today is October 29, 2024. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.

Trump says he will ‘100%’ get jailed Hong Kong ex-tycoon Jimmy Lai out of country

South China Morning Post

US Republican presidential candidate Donald Trump has vowed to secure the release of jailed former Hong Kong media tycoon Jimmy Lai Chee-ying if he wins the upcoming election on November 5. Lai, founder of the now-defunct Apple Daily newspaper, is currently imprisoned in Stanley Prison facing charges related to national security. During an interview, Trump expressed confidence in his ability to negotiate with Chinese President Xi Jinping to facilitate Lai's release, drawing on his past experience with American basketball players detained in China. Lai has been in custody since December 2020 and has faced international scrutiny regarding his treatment in prison, including allegations of solitary confinement. A bipartisan group of US lawmakers has called for his immediate release, while Hong Kong authorities have defended the legal system against criticisms from Lai's international legal team. Trump is set to face Democratic Vice-President Kamala Harris in the election.

https://www.scmp.com/news/hong-kong/politics/article/3284346/trump-says-100-yes-he-will-get-jailed-hong-kong-ex-tycoon-jimmy-lai-out-china?utm_source=rss_feed

China detains South Korean on suspicion of espionage

Nikkei Asia

China has detained a South Korean citizen on suspicion of espionage, marking the first arrest under an expanded counter-espionage law implemented last July. The individual, reportedly a former Samsung Electronics employee who later worked for a Chinese chip company, is suspected of leaking semiconductor-related information to South Korean authorities. The Chinese foreign ministry confirmed the arrest but did not disclose further details or the individual's identity. This incident could impact South Korean investments in China, following previous tensions that led to the departure of Japanese expatriates over similar charges. The arrest highlights growing concerns in both countries regarding industrial espionage and national security in the semiconductor sector amidst escalating technological competition and export restrictions.

https://asia.nikkei.com/Politics/International-relations/China-detains-South-Korean-on-suspicion-of-espionage

Xi Is Overcoming His Dislike of the Stock Market

Foreign Policy

In late September, China's stock market saw an unexpected rally, driven by government stimulus amid weak economic indicators and a declining property sector. Beijing's abrupt shift from minimal intervention to a full-scale market rescue involved enhanced communication strategies and policy adjustments aimed at restoring investor confidence. This marked a significant departure from President Xi Jinping's previous hands-off approach, indicating a new focus on the stock market as a key component of economic policy.

Historically, Xi has been cautious regarding financial markets, having witnessed the devastating 2015 stock market crash that eroded public confidence and complicated his economic agenda. Following that event, Xi prioritized state-led economic management over speculative ventures, resulting in a more controlled capital market environment. However, the current economic climate, characterized by a collapsing real estate sector and the need for alternative investment avenues, has prompted a reevaluation of the stock market's role in wealth accumulation and economic stability.

Xi's strategy aims to cultivate a steady bull market that channels capital into critical sectors like technology and green energy, while addressing structural challenges such as the aging population and underfunded pension system. This approach includes encouraging corporate consolidation to create competitive national champions and easing restrictions on equity investments. However, persistent issues such as regulatory inconsistency and weak corporate governance continue to hinder the effectiveness of these reforms. Ultimately, Xi faces the challenge of balancing market control with the need for sustainable growth, raising questions about the feasibility of his vision for China's capital markets.

https://foreignpolicy.com/2024/10/29/xi-china-stock-market-rally-slow-bull-stimulus/

China eyes ‘birth-friendly society’ with population stimulus next on the agenda

South China Morning Post

China is introducing a childbirth subsidy system and tax cuts for parents to combat declining fertility rates and support families amid a demographic crisis. The State Council's policies include enhanced medical, housing, and leave benefits, aiming to foster a "birth-friendly society." Despite local cash incentives, the central government plans a comprehensive national strategy, potentially costing up to 500 billion yuan annually. China’s fertility rate fell to 1.09 in 2022, far below the replacement level of 2.1. The measures face skepticism, with experts noting that economic and social factors complicate efforts to increase births.

https://www.scmp.com/economy/policy/article/3284318/china-eyes-birth-friendly-society-population-stimulus-next-agenda?utm_source=rss_feed

Zara owner's CEO: China remains an 'important market'

Nikkei Asia

Inditex CEO Oscar Garcia Maceiras remains optimistic about the Chinese market despite its sluggish economy, considering expanding the company's online business there. He emphasized the importance of understanding customer needs over macroeconomic conditions and highlighted Inditex's ability to adapt to industry changes. The company minimizes unsold inventory by keeping production close to its headquarters in Spain and focusing on accuracy in customer demand. Inditex has invested significantly in sustainability and logistics to enhance the customer experience, with ongoing projects set to improve operations by 2026.

https://asia.nikkei.com/Business/Retail/Zara-owner-s-CEO-China-remains-an-important-market

HSBC shares jump 3.69% on $3bn share buyback plan

Nikkei Asia

HSBC Holdings' Hong Kong shares rose 3.69% after the bank reported a pretax profit of $8.48 billion, surpassing estimates, and announced a $3 billion stock buyback. CEO Georges Elhedery emphasized that a recent restructuring plan, aimed at improving efficiencies, does not indicate a split of the bank. The restructuring will create four divisions and two geographic regions to streamline operations. Despite rising geopolitical tensions, particularly between China and the West, HSBC plans to focus on leadership and market share in competitive areas. The bank recorded a 5% revenue increase to $17 billion for the quarter.

https://asia.nikkei.com/Business/Finance/HSBC-shares-jump-3.69-on-3bn-share-buyback-plan

China takes down fake news about its military, closes social media accounts

South China Morning Post

Chinese internet regulators are cracking down on social media accounts spreading false information about the military, including fake reports of cyberwarfare in the South China Sea. The Cyberspace Administration of China identified and removed several accounts for fabricating military rumors, distorting military history, and misleading the public. Some accounts even used military imagery to sell products online. The authorities emphasize their intolerance for misinformation regarding the military and have implemented strict measures, including a ban on slandering military heroes. They encourage the public to report any violations.

https://www.scmp.com/news/china/politics/article/3284276/china-takes-down-fake-news-about-its-military-closes-social-media-accounts?utm_source=rss_feed

Hurun Rich List: China’s wealthiest lose money from slowing economy and market slides

South China Morning Post

China's richest individuals experienced a significant decline in wealth over the past year, with the number of billionaires dropping by 12% to 1,094 and their collective wealth falling to $2.97 trillion, according to the Hurun Research Institute. The downturn is attributed to economic challenges, a struggling stock market, and weak consumer demand. Only 30% of the wealthiest reported an increase in net worth, with Zhang Yiming of ByteDance emerging as the new richest individual. Meanwhile, the overall economic growth has lagged behind Beijing's targets, raising concerns about the sustainability of recent market recovery measures.

https://www.scmp.com/business/china-business/article/3284288/hurun-rich-list-chinas-wealthiest-lose-money-slowing-economy-and-market-slides?utm_source=rss_feed

TSMC cuts off at least two chip clients over potential Huawei links

Nikkei Asia

Taiwan Semiconductor Manufacturing Co. (TSMC) has halted shipments to at least two chip developers amid suspicions of attempts to bypass U.S. export controls related to Huawei Technologies. The companies had been placing significant orders for chips using TSMC’s advanced 7-nanometer technology, raising concerns for the Taiwanese chipmaker. TSMC confirmed it has not supplied Huawei since mid-September 2020 and has established a robust export compliance system. The U.S. imposes strict regulations on chip production for Chinese companies, particularly those involved in advanced technology like AI chips. In response, Huawei has partnered with China's Semiconductor Manufacturing International Corp. to produce competitive chips. The U.S. is intensifying enforcement of export controls in Taiwan, Japan, and South Korea to prevent circumvention of these restrictions.

https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-cuts-off-at-least-two-chip-clients-over-potential-Huawei-links

China smartphone market to close 2024 with first annual sales growth in 5 years: report

South China Morning Post

China's smartphone market is set for its first annual sales growth in five years, with a 2.3% increase in the third quarter, according to Counterpoint Research. Apple dropped to sixth place in domestic rankings, surpassed by Vivo, Huawei, Xiaomi, Honor, and Oppo. Improved consumer spending and competition among vendors are expected to intensify this quarter, driven by Singles’ Day promotions. Vivo led sales with a 19.2% market share, followed by Huawei at 16.4% and Xiaomi at 15.6%. Apple's iPhone 16 series saw strong sales, particularly for the Pro models, indicating potential revenue growth.

https://www.scmp.com/tech/tech-trends/article/3284324/china-smartphone-market-close-2024-first-annual-sales-growth-5-years-report?utm_source=rss_feed

Hong Kong residential, retail properties recover while office sector struggles with glut

South China Morning Post

Hong Kong's office market is struggling with rising vacancy rates and decreasing rents, lagging behind the recovery of the residential and retail sectors. Analysts predict a continued decline in office rents, estimating an 8% drop in 2024 and 2025 due to an oversupply of new office space. In contrast, the residential market is buoyed by interest-rate cuts and policy changes that enhance home affordability, resulting in strong sales for new projects. Retail properties are also seeing some recovery, supported by new leases and anticipated boosts from increased tourism and relaxed visa regulations.

https://www.scmp.com/business/article/3284209/hong-kong-residential-retail-properties-recover-while-office-sector-struggles-glut?utm_source=rss_feed

Owner Jeff Bezos says Washington Post ended US presidential endorsements on ‘principle’

South China Morning Post

Jeff Bezos, the founder of Amazon and owner of The Washington Post, defended the newspaper's decision not to endorse a candidate in the upcoming presidential election, calling it a "principled decision" aimed at addressing concerns of bias in media. In an op-ed, Bezos stated that endorsements create a perception of non-independence and that the decision to refrain from endorsing was made to maintain trust in journalism. The Post has a history of endorsing Democratic candidates but chose to stay neutral in this polarizing election between Donald Trump and Kamala Harris. Bezos also denied any personal motivations behind the decision, emphasizing that neither campaign was consulted. The announcement faced backlash, resulting in the loss of approximately 200,000 digital subscribers, or 8% of the total, since the announcement. The Post's choice parallels a similar decision made by the Los Angeles Times.

https://www.scmp.com/news/world/united-states-canada/article/3284262/owner-jeff-bezos-says-washington-post-ended-us-presidential-endorsements-principle?utm_source=rss_feed

For Taiwan’s crucial chip industry, both Trump and Harris bring risks

Al Jazeera

Taiwan's semiconductor industry, which produces nearly 60% of the world's chips, is facing significant challenges due to the ongoing geopolitical rivalry between the United States and China. As the U.S. implements measures to counter China's technological ascent, Taiwanese companies that previously relied on Chinese markets must adapt to a rapidly changing landscape. Since the signing of the U.S. Chips and Science Act in 2022, firms in Taiwan have begun diversifying their operations, shifting focus away from China towards markets in the U.S. and Southeast Asia. However, these transitions are complicated by the inconsistent policies and regulations that create uncertainty for engineers and executives in the industry.

The upcoming U.S. presidential election could further impact Taiwan's semiconductor sector, regardless of whether Vice President Kamala Harris or former President Donald Trump takes office. Analysts anticipate that both candidates will impose new restrictions on Chinese technology, which could have mixed effects on Taiwanese firms. While Harris is expected to follow a more consultative approach, Trump's history of aggressive trade policies raises concerns among Taiwanese engineers about potential tariffs and restrictions on their goods. Polls suggest that many in Taiwan prefer a Harris victory due to her perceived alignment with the interests of the high-tech industry.

Despite the challenges posed by U.S.-China relations, some Taiwanese companies are finding opportunities. Major players like TSMC are adjusting their business models to align with U.S. demands, including accepting substantial funding to build facilities in Arizona. However, smaller firms are grappling with increased competition from Chinese manufacturers in legacy chip markets, raising concerns about potential overcapacity and the sustainability of their operations. As uncertainty looms, industry experts emphasize the need for Taiwanese firms to remain agile and prepared for changes in the global semiconductor landscape.

https://www.aljazeera.com/economy/2024/10/29/for-taiwans-crucial-chip-industry-both-trump-and-harris-bring-risks

China says it's ready to launch the next crew to its orbiting space station early Wednesday

Yahoo US

China is set to launch its next crewed mission to the Tiangong space station early Wednesday, with a team consisting of mission commander Cai Xuzhe, and first-time astronauts Song Lingdong and Wang Haoze. This mission will replace the current crew who have been on the station for six months. The launch will take place from the Jiuquan Satellite Launch Center aboard a Long March-2F rocket. The astronauts aim to conduct scientific projects and express their commitment to national pride during a press conference. China's space achievements include building its own space station, landing a Mars explorer, and ambitions to send a person to the moon before 2030, amidst growing competition with the U.S. and other countries in space exploration. The upcoming mission is expected to conclude by late April or early May, with contingency plans in place for early return if necessary.

https://www.yahoo.com/news/china-says-ready-launch-next-033755834.html

Guangzhou’s growing army of gig workers adds to economic, job concerns

South China Morning Post

In Guangzhou, a significant increase in gig workers has been observed, with about 19% of the city's workforce engaged in flexible contract jobs like food delivery, ride-hailing, and live-streaming. This figure surpasses the national average of 14.3%. The rise in gig employment coincides with a slowdown in the city's GDP growth, which was only 2% in the first nine months of the year, compared to the national growth rate of 4.8%. The trend reflects a broader shift towards service sectors in China's economy, but it also raises concerns about job security and the precarious nature of gig work, as many workers are responsible for their own social security contributions and face the risk of sudden job loss. The survey indicates that men primarily dominate sectors like food delivery, while women are more prevalent in roles such as nannies and housekeepers. The growing number of gig workers, estimated to exceed 200 million nationally, has led to longer hours and lower pay in some industries, particularly food delivery and ride-hailing.

https://www.scmp.com/economy/china-economy/article/3284163/guangzhous-growing-army-gig-workers-adds-economic-job-concerns?utm_source=rss_feed

China’s SOEs bulk up for market heavy lifting

Reuters BreakingViews

Guotai Junan and Haitong's proposed merger aims to create China's largest brokerage, reflecting Beijing's push for larger state-owned enterprises (SOEs) to enhance the $11 trillion stock market. This merger is part of a broader trend, with over 46 M&A deals involving mainland A-share firms announced recently. While the government promotes consolidation to stabilize the market and address industrial overcapacity, challenges remain, as many SOEs struggle with inefficiency and declining profits. The effectiveness of these mergers in generating value and improving performance will be closely monitored by investors.

https://www.breakingviews.com/considered-view/chinas-soes-bulk-up-for-market-heavy-lifting/

Will China cut personal income taxes as part of its stimulus drive?

South China Morning Post

Former US President Donald Trump proposed ending federal income tax during his campaign, while in China, there are calls for personal income tax cuts to stimulate the economy amid weak domestic demand. Sheng Songcheng, a former official, suggested raising the tax threshold from 5,000 yuan to 8,000 yuan monthly, potentially costing the government only 30 billion yuan annually. Despite over 70% of earners being exempt from taxes, lawmakers urge more fiscal policies to boost consumption. Experts argue that tax cuts alone may not significantly drive consumption, emphasizing the need for broader economic reforms.

https://www.scmp.com/economy/china-economy/article/3284162/will-china-cut-personal-income-taxes-part-its-stimulus-drive?utm_source=rss_feed

Will next US president be able to drive a wedge between Russia and China?

South China Morning Post

The upcoming presidential race between Donald Trump and Kamala Harris is set against a backdrop of escalating geopolitical tensions, particularly concerning Russia and its influence on U.S.-China relations. Russia's involvement in the Ukraine conflict is a contentious issue, with Trump asserting that the invasion would not have occurred during his presidency. He claims he could resolve the war quickly if elected, while critics fear that his victory could alter U.S. support for Ukraine. The relationship between China and Russia adds another layer of complexity, as the U.S. accuses China of bolstering Russia's military efforts, a charge that Beijing denies.

Regardless of the election outcome, experts suggest that significant shifts in U.S.-Russia relations are unlikely. Analysts argue that even if Trump were to regain office, he would not completely sever aid to Ukraine. The prevailing sentiment is that U.S. support for Ukraine is systemic and will endure, irrespective of the presidential outcome. Furthermore, domestic political pressures within the U.S. would likely constrain any drastic foreign policy changes that could be seen as compromising national interests, even if Trump maintains a favorable view of Putin.

China and Russia's growing partnership, solidified during the Ukraine crisis, is expected to persist regardless of the U.S. election results. Both countries have reaffirmed their commitment to deepening cooperation, as evidenced by increasing trade and joint military exercises. Analysts contend that Russia will continue to rely on China both economically and politically, especially as relations with the West remain strained. Although some experts suggest the possibility of future tensions between China and Russia, the current trajectory indicates that both nations are unlikely to shift their alliance significantly, making it essential for China to navigate its strategic interests carefully amidst this geopolitical landscape.

https://www.scmp.com/news/china/diplomacy/article/3284178/will-next-us-president-be-able-drive-wedge-between-russia-and-china?utm_source=rss_feed

U.S. finalizes China tech investment ban targeting AI, chips

Nikkei Asia

The U.S. has implemented new rules to limit American investments in high-tech sectors in mainland China, Hong Kong, and Macao, focusing on areas like artificial intelligence, semiconductors, and quantum technology. These regulations, effective January 2, 2024, were established following President Biden’s executive order from August 2023. They require U.S. individuals to either refrain from certain transactions or notify the Treasury when engaging in such activities. The definition of "U.S. persons" now includes permanent residents, which could impact many Chinese tech professionals who have studied or worked in the U.S. While most U.S. investors have already shifted away from these sectors in China, some domestic venture capitalists who are U.S. citizens or green card holders will still be affected. The Treasury clarified that not all investments in China are banned, as publicly traded securities remain exempt. Additionally, discussions are ongoing with U.S. allies regarding potential similar investment restrictions.

https://asia.nikkei.com/Politics/International-relations/US-China-tensions/U.S.-finalizes-China-tech-investment-ban-targeting-AI-chips

Mexico warns US ban on Chinese car tech could hurt its automotive industry

South China Morning Post

The Mexican government expressed concerns over a Biden administration proposal to ban key Chinese software and hardware in connected vehicles, citing potential negative impacts on Mexico's automotive industry. The economy ministry warned that the proposal could create trade barriers, disrupt supply chains, increase production costs, and threaten employment. The proposed restrictions would effectively ban the import of Chinese-brand vehicles, even if assembled in Mexico, and may conflict with North American free trade rules. Car and tech groups requested changes and additional time to comply with the new regulations, which are set to take effect in the 2027 model year for software and the 2030 model year for hardware. The Commerce Department has not yet commented and aims to finalize the proposal by January 20.

https://www.scmp.com/news/china/article/3284231/mexico-warns-us-ban-chinese-car-tech-could-hurt-its-automotive-industry?utm_source=rss_feed

Singapore's quiet rise in the global 'deep tech' race

Nikkei Asia

Tianjin, China, recently launched its first driverless public bus service, marking a significant milestone in the adoption of autonomous vehicles (AVs) in the region. The service, which spans 20 kilometers and connects various essential locations, was developed by the Singapore-based startup Moovita. As the first foreign AV provider licensed in China, Moovita represents a growing trend of deep tech companies emerging from Singapore, which has seen a 31% increase in deep tech investments in 2023 despite a general downturn in funding across other sectors.

These deep tech firms, often stemming from scientific research in fields like semiconductors and robotics, are gaining traction due to Singapore's strong research base and government support. The city-state has rapidly ascended in the global startup ecosystem rankings, now standing seventh overall and first in Asia. Investors recognize the potential for deep tech to address significant global challenges, particularly amid geopolitical tensions and supply chain disruptions, leading to a renewed focus on self-sufficiency in critical areas such as chipmaking.

The Singapore government has intensified its efforts to foster innovation and venture creation through partnerships and substantial funding commitments. Recent collaborations with various investors aim to commercialize cutting-edge technologies, particularly in biotechnology and deep tech. As Singapore positions itself as a high-tech manufacturing hub, industry leaders emphasize the importance of nurturing local startups and leveraging the nation's established research capabilities to build a sustainable deep tech ecosystem that can rival global counterparts like Silicon Valley.

https://asia.nikkei.com/Spotlight/ASEAN-Money/Singapore-s-quiet-rise-in-the-global-deep-tech-race

Ant CEO Eric Jing touts tokenisation benefits for cross-border transactions at FinTech Week

South China Morning Post

At Hong Kong FinTech Week, Ant Group CEO Eric Jing highlighted the potential of tokenisation to enhance real-time cross-border payments, emphasizing its efficiency and programmability. He discussed Alipay's growth in Hong Kong, where it now serves 90% of merchants and 4.2 million users. Hong Kong Monetary Authority Chief Executive Eddie Yue noted the distinction between tokenisation and speculative cryptoassets, advocating for tokenisation's role in economic connectivity. Meanwhile, Tencent's WeChat Pay reported a significant increase in inbound payments. The event underscored a shift toward integrating tokenisation and stablecoins within the financial sector, aiming for greater product diversity.

https://www.scmp.com/tech/blockchain/article/3284194/ant-ceo-eric-jing-touts-tokenisation-benefits-cross-border-transactions-fintech-week?utm_source=rss_feed

Chances of all-out war over Taiwan are ‘slim’, says US envoy

South China Morning Post

Raymond Greene, the de facto American ambassador, stated that the chances of an all-out war over Taiwan are low due to Taipei's military reforms and US military presence in the region. However, he urged Taiwan to better highlight China's "grey-zone" tactics, such as maritime clashes and psychological warfare, to gain international condemnation of Beijing's actions. Greene noted that while the US does not recognize Taiwan as independent, it opposes any forceful attempts by China to assert control. He also suggested Taiwan learn from the Philippines in publicizing incidents with China to increase pressure on Beijing.

https://www.scmp.com/news/china/military/article/3284212/chances-all-out-war-over-taiwan-are-slim-says-us-envoy?utm_source=rss_feed

No penalties in national security law guidelines for Hong Kong civil servants: Chris Tang

South China Morning Post

Hong Kong's Secretary for Security, Chris Tang Ping-keung, announced that new national security law guidelines for civil servants will not include penalties for non-compliance. The guidelines aim to assist employees in implementing the legislation in their daily work, focusing on clarity and understanding rather than punishment. The Security Bureau is set to issue these guidelines in the first half of next year, detailing how civil servants can incorporate 20 aspects of national security into their roles. Tang emphasized the importance of understanding the implications of their work on national security, especially in the context of potential sanctions. The guidelines come after the introduction of the Safeguarding National Security Ordinance in March, which criminalizes various acts deemed threats to national security.

https://www.scmp.com/news/hong-kong/politics/article/3284211/no-penalties-national-security-law-guidelines-hong-kong-civil-servants-chris-tang?utm_source=rss_feed

China shifts supply-chain focus to ‘least-developed countries’ for November expo

South China Morning Post

China is set to expand its upcoming China International Supply Chain Expo, scheduled for November 26 in Beijing, with more than 600 companies expected to participate, reflecting a 20% increase from last year's event. The China Council for the Promotion of International Trade (CCPIT) is particularly focusing on inviting companies from the least-developed countries, providing free exhibiting opportunities to support African exhibitors. The expo will feature a significant presence from US and European firms, while also highlighting China's capabilities in advanced manufacturing, smart cars, green agriculture, and digital technology. This initiative comes as China seeks to strengthen its trade relationships amid increasing barriers from the West, especially during a time of potential shifts in global trade policies following the upcoming US presidential election.

https://www.scmp.com/economy/china-economy/article/3284196/china-shifts-supply-chain-focus-least-developed-countries-november-expo?utm_source=rss_feed

Intel to expand Chinese chip-packaging plant after call for security audit

Nikkei Asia

Intel has announced plans to expand its chip-packaging and testing facility in Chengdu, China, just weeks after a state-linked group suggested a cybersecurity review of its products due to security vulnerabilities. The expansion will increase the capacity for server chips and establish a customer solutions center to enhance local supply chain efficiency and support for Chinese clients. Intel's China chief praised government initiatives and expressed a desire to contribute to the development of inland areas. This comes in the context of heightened scrutiny of U.S. tech companies in China, exemplified by a recent ban on U.S.-based Micron Technology's products in critical infrastructure due to security concerns. Micron is also investing in a chip-packaging plant in Xi'an, indicating its commitment to the Chinese market.

https://asia.nikkei.com/Business/Tech/Semiconductors/Intel-to-expand-Chinese-chip-packaging-plant-after-call-for-security-audit

China’s stimulus offers shot in the arm for global firms amid consumption, capital boost

South China Morning Post

Major foreign investors in China are observing signs of increased consumer spending and easier access to capital following recent economic stimulus efforts. American retailers report higher spending from Chinese customers, while European companies anticipate that the stimulus will lead to greater government spending and structural changes. The American Chamber of Commerce noted improved consumer confidence and lower interest rates facilitating new investments, despite concerns about the stimulus's long-term effectiveness. Upcoming legislative meetings may approve further financial support, but some experts caution that lasting growth requires deeper market reforms and innovation-focused strategies.

https://www.scmp.com/economy/policy/article/3284186/chinas-stimulus-offers-shot-arm-global-firms-amid-consumption-capital-boost?utm_source=rss_feed

Volkswagen to shut three factories and cut thousands of jobs, says union

Guardian

Volkswagen plans to close at least three factories in Germany, cut pay by 10%, and lay off thousands of workers due to weak sales and slow growth in the electric vehicle sector. The company's union reported that all German plants will be affected, with expected redundancies in the tens of thousands. Volkswagen aims to save about €10 billion and has proposed restructuring to address rising costs and competition, particularly from Chinese manufacturers. The situation highlights the broader crisis in Europe’s manufacturing sector, with a significant decline in vehicle production since 2020.

https://www.theguardian.com/business/2024/oct/28/volkswagen-shut-three-factories-cut-thousands-jobs-union

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