The China trade surplus cost an estimated 2.3 million American jobs according to a study released by the Economic Policy Institute according to BusinessWeek.
The study estimated that between 2001 and 2007 the China trade surplus cost $19.4 billion in lost wages with China trade in exports of computers and electronic parts accounted for half of the $178 billion increase overall.
The states hardest hit according to the study on the effects of the Chinese trade surplus include California, Texas, New York, Illinois, Ohio, North Carolina, Washington, D.C., Virginia and West Virginia.
Tags: China Trade
China’s economic growth is expected to slip to 9.9 percent in 2008 and to 9.7 percent in 2009 according to the Asian Development Bank (ADB) reported by China Daily.
The Asian Development Bank (ADB) forecast for the Chinese economy is down from its forecast back in April of 10 percent for 2008 and 9.8 percent for 2009.
The US economic slowdown combined with inflation and rising commodity prices are key drivers of the less than originally expects growth number for the Chinese economy.
Tags: China Economy
The China trade surplus fell 12 percent in the first six months of 2008 according to AFP.
In June alone, the China trade surplus fell to $21.35 billion; a 20.7 percent decline to shrink for the first time in five years.
The key drivers of the shrinking China trade surplus in June are a depreciating Yuan and weaker exports similar to that in May. See China Trade Surplus Drops [Read more →]
Tags: China Trade
China’s biggest agricultural processing and trading company announced it will purchase a 5 percent stake in Smithfield Foods Inc, the US producer of pork, according to Reuters UK.
The Chinese investment is estimated at $350 million involving the purchase of 7 million Smithfield Foods shares.
The China investment strategy by COFCO is to expand the pork industry in China rather than capitalize in the US. [Read more →]
Tags: China Investment
The China economy is now the world’s second largest imported of Oil according to Forbes.
China imports of oil in May were up 25 percent from a year ago and continue to rise with double-digit China economic growth and a continued increase in the demand for fuel.
The news comes on the heels of a China government price hike on is domestic subsidized fuel prices. See: China Government Raised Fuel Prices [Read more →]
Tags: China Trade
Chinese steelmakers have agreed to pay higher steel prices according to Reuters.
Nonetheless, while Baosteel agreed to up to 96.5 percent more for iron ore from Rio Tinto it failed to reached an agreement with BHP Billiton creating the first ever differentials by quality and region since not all miners accepted the same percentage price increase.
The move by Baosteel sent shares prices down sharply and continues to add to China inflation woes affecting the China economy. [Read more →]
Tags: China Economy
The China government raised fuel prices 18 percent according the AP.
The move by the Chinese government to raise the price of gasoline and diesel is designed to cool the demand for energy that continues to challenge the China economy.
While the China government has vowed to keep fuel prices stable, the greater concern is over the possibility of large scale protest over fuel prices and China inflation as a whole just before the Beijing Olympics. [Read more →]
Tags: China Economy
China inflation in May was down as the China CPI went from 8.5 percent in April to 7.7 percent in May according to Forbes.
Nonetheless, many are skeptical of the China government’s National Bureau of Statistics number may be skewed due to price controls in certain sectors.
For examples, it is known that the China government has asked firms in the food and construction sectors to hold prices for the good of the Chinese economy similar to that of the [Read more →]
Tags: China Economy
The China trade surplus dropped 10 percent to $20.2 billion in May according to the Business Standard.
China exports were up 28 percent and China imports were up by 40 percent but the key driver of the China trade surplus decrease is the rising value of the Yuan according to China government officials.
The news may likely help ease the pressure by the [Read more →]
Tags: China Trade
The China government will meet with US offices in mid June to hold high level economic talks according to AP.
The key point of the discussion will focus on the China trade with the US and the ongoing issues of the undervalued Chinese currency.
The US meeting led by Treasury Secretary Henry Paulson with the Chinese government will be overshadowed by [Read more →]
Tags: China Government
The China government has announced that the planned China Unicom acquisition of China Netcom is valued at $56 billion according to AFP.
The deal announcement comes days after the China government announced its decision to create three telecom giants by combining the larger China wireless carriers [Read more →]
Tags: China Investment
The China government has announced plans to create three new telecom giants according to AFP.
The move by the Chinese government is aimed to balance the telecom industry in China as mobile providers continue to trounce fix-line operators.
Specifics of the plan include China Mobile acquiring China Tietong Telecommunications Corp; China Telecom acquiring the mobile portion of China Unicom and China Satellite Communications Corp; and remainder of China Unicom merging with China Netcom. [Read more →]
Tags: China Economy
Whirlpool Corporation, the US home appliance maker, announced it will invest in China according to AFP.
The Whirlpool China investment deal involves a 50 percent joint venture with Hisense a Chinese conglomerate.
While the amount of the China investment was not disclosed, the move by Whirlpool will [Read more →]
Tags: China Investment
The China government has cut the stamp duty on China stock market transactions from 0.3 percent to 0.1 percent according to AFP.
To understand the impact of the stamp duty reduction, the China government and the State Administration of Taxation received 220.5 billion yuan in revenue in 2007 which was up 10 times that of 2006.
The move by the China government is aimed to boost [Read more →]
Tags: China Economy
French President Nicolas Sarkozy has announced he will send French diplomats to China in order to quell anti-French sentiment as a result of protest during the Paris Olympic torch relay according to Telegraph.
The move comes after thousands of Chinese have called for a boycott of French goods and have protested outside the French supermarket chain Carrefour.
Sarkozy is also planning to deliver a letter to the China government and President Hu Jintao highlighting the importance of strong Sino-French ties, yet Sarkozy himself is not planning to personally visit China, members of the China government, or President Hu Jintao at this time.
[Read more →]
Tags: China Government
Ericsson, the Swedish Telecom equipment maker, has competed a deal to expand China’s GSM network by signing deals with both China Mobile and China Unicom according to China Daily.
The GSM network investment in China is worth $1.44 billion to Ericsson with $1.3 billion in China Mobile and another $140 million in China Unicom.
The project is set for completing in 2008.
For more watch this informative video: Ericsson Signs a $1.44 Billion Deal with Chinese Mobile Co.
[Read more →]
Tags: China Investment
The China economy grew 10.6% in the first quarter of 2008 according to The Guardian.
The economic news continues to put pressure on the Chinese government to maintain inflation as it begins to creep towards double digit inflation which ma ultimately may cause social unrest as in the past.
The China economy experienced [Read more →]
Tags: China Economy
The International Olympic Committee (IOC) has called out the China government for ignoring promises made when the China government was award the 2008 Olympics games back in 2001 according to the Chicago Tribune.
Specifically, International Olympic Committee president Jacques Rogge referred to human rights abuses and the most recent events involving Tibetans and the China government.
The blow to the China government comes as the world [Read more →]
Tags: China Government
New Zealand and China have signed the first western China free trade agreement with China according to The Telegraph.
The Bi-lateral China trade agreement with New Zealand states that New Zealand will remove all tariffs Chinese imports by 2016 and China will lift tariffs completely by 2019.
The agreement is historic and should set the stage for further China free trade agreements’ with other [Read more →]
Tags: China Trade
China Telecom has announced that it will purchase Beijing Telecom for $793 million according to Vnunet.
The key driver of the China investment consolidation is competition from the rapidly growing China mobile market.
While China Telecom owns about 70 per cent of the fixed line market, the China government is obviously not [Read more →]
Tags: China Investment
The World Bank has cut its 2008 growth forecast for the China economy from 9.6 percent to 9.4 percent according to AFP.
The World Banks original 2008 growth forecast for the China economy was 10.8 percent yet because of the global slow down the bank decided to reduce its expectations.
While China exports are certainly feeling the affects of slower US growth, the China government likely welcomes the signs that the China economy is [Read more →]
Tags: China Economy
The China government’s involvement recent conflict with Tibetan protestors continues to drive calls for boycotts of the Beijing Olympics.
If the momentum continues, the Beijing Olympics could be severely damaged in terms of global appreciation for China and in monetary terms with regard to the China economy.
Nonetheless, the Dali Lama, now exiled in India, supports the Beijing Olympics in China despite the violence against his people.
For more, watch this informative video: Dalai Lama supports Olympics
[Read more →]
Tags: China Government
China’s Huaneng Group, parent of China’s largest listed power producer, has won the bid to purchase Tuas Power from Temasek Holdings according to The Wall Street Journal.
The China investment deal is estimated between $2.8 billion and $3 billion.
The move not only aligns with the Singapore government’s drive to privatize its utilities sector but also helps Huaneng overcome the challenges that come with China government controls [Read more →]
Tags: China Investment
The China government’s General Administration of Customs reported that the China trade surplus plunged 63 percent in February to its lowest in one year according to Forbes.
The February drop in the China trade surplus went to from the $23.7 billion in February 2007 to $8.6 billion this year.
While the global slowdown does play a role in the drop, according to officials, the primary driver of the China trade surplus decline is [Read more →]
Tags: China Trade
The China government has announced that it will restrict China investment by foreign firms that are energy intensive according to The Times of India.
Key drivers for the restriction on China investment are to slow growth, reduce pollution and protect natural resources.
In addition, the China government stated that [Read more →]
Tags: China Investment
The US is concerned that raw heparin imported from China has caused illnesses and deaths.
Nonetheless, the China FDA has concluded that the US owned Baxter International is responsible despite that fact their product comes from China.
For a deeper look into the China trade and production of the unregulated Heparin watch this informative Wall Street Journal Video: Inside China’s Heparin Factories
[Read more →]
Tags: China Trade
With inflation in the China economy hitting 7.1 percent in January, the China government and the China People’s Bank of China have announced they will stick with their existing tight monetary policy according to AFP.
Thus far, the China government has hiked interest rates six times in 2007 in order to tamed inflation yet the China economy continued [Read more →]
Tags: China Economy
Huawei, global Chinese telecommunications company, did not receive US national security approval to merge with the US technology group 3Com according to AFP.
The China investment into the US company was proposed at $2.2 billion yet without security approval, Bain, the private equity firm involved in the deal, is now forced to withdraw its merger filling with Committee on Foreign Investment in the United States (CFIUS).
China investments into US companies [Read more →]
Tags: China Investment
The China economy hit a 7.1 percent rise in inflation in January according to The Guardian.
The current fear globally is that such inflationary pressure in the China economy will soon begin, if it has not already, to affect the rest of the world.
Surging food cost is the China government’s [Read more →]
Tags: China Economy
Evraz Group, the Russian steel producer, announced that it plans to invest in China’s Delong Holdings in order to expand into the China market according to Forbes.
The China investment into Delong Holdings by Evraz is valued at about $1.5 billion, consists of a 51 percent stake, and yet is subject to Chinese government antitrust clearance.
The move by Evraz follows a bid for [Read more →]
Tags: China Investment