China

Honda-Nissan merger moves too slow for comfort

23 Dec 2024

There’s some logic to the struggling Japanese carmakers balking at speeding into a $50 bln tie-up. But taking at least 18 months to test the waters risks losing even more ground to their increasingly dominant Chinese rivals. Potential US tariffs strengthen the case for alacrity.

Trump and Tesla will turbocharge self-driving race

23 Dec 2024

The incoming president could speed up the development of autonomous driving tech in the US. Elon Musk’s marque is poised to reap the rewards in what could be a $400 bln global market. Stragglers, like China’s BYD, will have to play catchup with a flurry of deals and partnerships.

China will wield big mop to clean up property mess

23 Dec 2024

A $13 trln real estate glut is undermining President Xi Jinping’s efforts to stimulate the world’s second-largest economy. Shifting millions of empty homes into a ‘bad bank’ before turning them into affordable housing would help stabilise prices and restore consumer confidence.

Chinese investment banking will roar back in 2025

20 Dec 2024

In 2024 regulators throttled share sales they feared would worsen a stock rout, triggering a 90% drop in IPO fundraising from a peak in 2021. With markets stabilising, Beijing can open the taps, end the deals drought and get capital to growth-focused firms.

Brick phones will ring in an unlikely revival

19 Dec 2024

Nokia handsets of the early 2000s are appealing to a generation seeking a digital detox. The market, which is only 2% of US devices, is growing fast having doubled in a year. With the likes of Australia banning social media for under-16s, Apple and Samsung may pivot or lose out.

Luxury firms will warily cut prices to boost sales

19 Dec 2024

High-end goods cost 54% more than before Covid. Yet the likes of LVMH refuse to blame lower volumes on more expensive wares. The fact is that rich Chinese consumers care more about savings than status symbols. Sacrificing margins will be an uncomfortable but inevitable strategy.

India starts resembling China in unflattering ways

19 Dec 2024

Growth is slowing and allegations of interference in the West’s affairs are rising. Part of the narrative weighing on the world’s second-largest economy is applicable to its fifth largest. Even if similarities are exaggerated, the connection poses a threat to India’s moment.

Hot topics of 2024 will smoulder into new year

19 Dec 2024

Inflation in the United States, a struggling Chinese economy and Boeing’s existential challenges were among the stories that dominated this year. In this Viewsroom podcast, Breakingviews columnists explain why these issues – among others – will keep cropping up in 2025.

US-China tech war will hold Asian allies hostage

16 Dec 2024

Washington’s curbs on semiconductors and other goods are starting to elicit a response from the People’s Republic. New export control rules offer a way for Beijing to retaliate. Its leverage over giants like Japan’s Toyota or South Korea’s SK Hynix make them prime targets.

Yuan’s fall would be a gift to Bank of Japan

16 Dec 2024

Talk of devaluation by Beijing to blunt any impact of an aggressive ratcheting up of US tariffs is jolting currency markets primed for a trade war. A drop in the renminbi would weigh on Japan's yen especially. That's not necessarily bad news for Governor Kazuo Ueda.

AstraZeneca lacks good medicine for Chinese limbo

13 Dec 2024

Executives at the $205 bln drugmaker have been detained by Beijing, hitting its shares. One way for CEO Pascal Soriot to ringfence China risk from the rest of AstraZeneca might be to list or spin off the unit. Yet that might just highlight fresh reasons to mark down the stock.

New Macau leader deals casino hub a promising hand

12 Dec 2024

Sam Hou Fai takes charge as the gambling enclave struggles to regain its pre-pandemic lustre. He is the first to hail from mainland China and can try to deepen Macau's ties to neighboring Guangdong, including more transport links. Business at Galaxy, SJM and peers could benefit.

How the world could unplug from China’s batteries

10 Dec 2024

International cell makers are struggling to compete with Chinese giants like CATL. But innovations like solid-state batteries could upend the industry in the not-too-distant future. In this week’s episode of The Big View podcast, QuantumScape CEO Siva Sivaram explains how.

Nvidia probe lets China have cake and eat it

10 Dec 2024

Beijing has started an antitrust investigation into the $3.4 trln firm. Coming after more US tech curbs on the country, the motive seems political. But Nvidia's AI chip dominance means monopoly concerns can't be dismissed. And the decision may resonate with regulators elsewhere.

China’s wealth pledge will face tough sceptics

10 Dec 2024

In a key meeting, Beijing identified stabilising stock and property prices as a top task in 2025. It recognises that people will spend more if they feel rich. This implies a policy bottom for both markets. Yet observers are forecasting a huge range of outcomes in the coming year.

China cuts its private sector much-needed slack

9 Dec 2024

Crackdowns on education and other industries crushed businesses like tutoring firm New Oriental. But the $10 bln firm's recent revival shows Beijing is loosening its grip to boost consumption and create jobs. The shift will hand private giants a bigger role to reboot growth.

Shein IPO is test of UK market discipline

6 Dec 2024

Britain’s financial watchdog may bless the fast-fashion group’s possible $64 bln listing, leaving investors to gauge the risks in its supply chain. Yet passive funds and soft disclosure rules limit shareholders’ ability to price such factors. Better transparency would help.

Global carmakers redefine success in China

6 Dec 2024

GM is shrinking to mediocrity with a rejig and roughly $3 bln writedown on the value of its Chinese joint ventures. International brands once chased chunky sales in the People’s Republic, now they aim for profitability on a smaller scale - and to learn from local peers.

China can let new bond binge play out – for now

4 Dec 2024

Last time treasury yields dived, the central bank jumped in. Now they’re even lower, but there is less official fuss. Concern over speculation has eased and the government is about to borrow billions. That resets the bar for intervention.

New World paves Hong Kong developers’ way to China

2 Dec 2024

The $2 bln property firm’s second CEO in as many months is an expert in mainland real estate, suggesting an urgent need to deepen ties there. New World’s $20 bln debt pile may be hastening the move, but broader pressures will push healthier peers like CK Hutchison to follow suit.