Trade

U.S.-PRC tensions upend tech funding supply chain

4 Jun 2019

American venture capitalists pumped a record $19 bln into Chinese startups in 2018 while flows the other way reached a high of $3.6 bln. Tougher foreign-investment rules and rising nationalism are set to add friction to capital movement, creating new winners and losers.

Trump gives Britain glimpse of post-Brexit reality

3 Jun 2019

Before his plane had touched down, the U.S. president intervened in the race to replace Prime Minister Theresa May and insulted London’s mayor. Leaving the EU will make the UK more dependent on its erratic ally for trade and security. Trump’s visit makes that look less appealing.

White House seeks new economic Cassandra

3 Jun 2019

The Trojan princess was fated to predict the future but be ignored. While Kevin Hassett made imperfect forecasts and flattered Donald Trump, there’s little evidence even his better advice was heeded. His replacement at the U.S. president’s think tank has an unenviable job.

Beijing’s threats may soon come in bigger packages

3 Jun 2019

Officials are drafting a blacklist for badly behaved foreign companies. It is the latest warning signal, as China tries to respond to U.S. blows without escalating an increasingly bitter trade dispute. But that’s getting harder, and a new FedEx probe raises the stakes.

Bond market rate cut beats Fed to the punch

29 May 2019

U.S. Treasury yields have fallen over a quarter point in a month, equivalent to a central bank easing. Blame trade worries plus structural factors like weak inflation and negative rates overseas. Fed rate cuts are never a one-off; this market-led one is unlikely to be different.

Rare-earth gun is best left in Beijing’s holster

29 May 2019

China, which dominates supply of minerals like neodymium, has hinted it might squeeze exports to the United States. In the past, similar embargos caused buyers to find substitutes; bans are hard to enforce, too. The threat suggests retaliatory options are limited.

Google’s hidden costs give Beijing sticker shock

22 May 2019

Reaching for sharper trade weapons, Washington has clamped down on Huawei's access to the U.S. giant's software. Chinese handset makers selling abroad rely on Google tech: the free Android system powers their phones. A crackdown leaves much of a $175 bln export market vulnerable.

Samsung reaps benefits of U.S.-China tech war

21 May 2019

Restrictions on Huawei’s use of American chips and software will make it harder to sell telecom gear outside the PRC. And Apple products could be vulnerable to a backlash in China. That leaves openings for the Korean group to sell network equipment as well as more smartphones.

Huawei takes trade war into uncharted territory

21 May 2019

Washington's attack on one of China’s biggest companies will hurt suppliers. But the onslaught marks a more worrying turning point. Such a relentless assault on a corporate giant is virtually unprecedented; that makes everything unpredictable, including the rules of engagement.

Jaunts abroad offer useful cover for China’s Ctrip

21 May 2019

The $20 bln travel giant, owner of Skyscanner, has become a top shareholder in India's MakeMyTrip. Efforts at diversification are prudent: rivals are proliferating at home, and the economy is cooling. There's protection too, if Beijing pulls tourists into a worsening trade war.

Donald Trump may yet play Huawei-saving wild card

20 May 2019

The Chinese telecom firm has effectively been cut off from U.S. suppliers, from Qualcomm to Google. That happened to ZTE too, and the president relented largely to help trade talks. Huawei is a much bigger, bipartisan concern. Even so, a similar reprieve can’t be ruled out.

China exhibits worrying trade war restraint

17 May 2019

Beijing could retaliate against Washington using rare earths, U.S. debt or American companies on the mainland, a popular tabloid suggests. A better question is why such weapons, some deployed in the past, now sit idle. It points to a different, more dangerous, conflict.

Viewsroom: The lasting effects of Trump’s tariffs

16 May 2019

Washington and Beijing may yet find a way to end their escalating trade war soon. But for many businesses, the damage already inflicted will be hard to undo. Plus: CEO Mark Zuckerberg might not welcome more calls to break up Facebook, but shareholders could benefit.

U.S.-China tech war may split progress in two

16 May 2019

Nationalism has sparked Washington and Beijing to begin separating their tech sectors, on supposed security grounds. Economics promises to prolong the struggle. Clustering, scale and technical prowess mean both sides can succeed in areas like 5G even if the outcome isn’t optimal.

Walmart is a test of broader tariff harm

16 May 2019

The retailer reported U.S. sales rose 3.4%, yet momentum could wane once higher border levies on another $200 bln of imports from China kick in. Walmart may not be the most exposed business, but Americans shopping at its more than 5,300 stores will feel it in their pockets.

Beijing’s hard line bodes ill for trade peace

14 May 2019

Officials announced fresh duties on $60 bln of U.S. products in response to the White House’s hike last week. It’s a muscular display in the face of another potential round of American tariffs. If the two sides can’t find common ground at the June G20 summit, things look grim.

Trump’s tariffs put yuan shorters back in the game

14 May 2019

China's currency is nearing 7 per dollar, as U.S. duties hit $200 bln of goods. That may cushion the pain but encourages capital flight, hampering efforts to gin up a flagging economy. Beijing could well tighten controls on overseas investment and debt repayment to compensate.

Trade flows will reveal the true cost of tariffs

10 May 2019

Washington has hiked duties on $200 bln of Chinese goods, after what officials say was a push by Beijing to renege on promises. Both sides intimate their economies can survive a blow that may only slightly dent GDP. Supply chains and the like, though, will show long-term losses.

American markets are great again for Chinese IPOs

9 May 2019

A near-record number of Chinese firms went public on U.S. exchanges in 2018. Luckin Coffee is among those continuing the trend this year. It contrasts with sharp drops in Chinese investment amid a trade war and other strains. But the healthy pipeline faces a new Shanghai rival.

U.S.-China tension will outlast Twitter trade spat

6 May 2019

Global markets fell after Donald Trump tweeted that he’d increase tariffs on Chinese goods. Even if trade talks get back on track, other U.S. moves will damage relations. They include curbs on investment from, and tech sales to, the PRC as well as an enforcement push.