Trade

Australia’s Huawei ban undercuts “Made in China”

23 Aug 2018

Security and political concerns prompted Canberra to block the telecom titan from backing the country’s 5G network. It’s a setback for Huawei, but also for Beijing. The world-beating national champions it wants to cultivate are increasingly seen as dangerous arms of the state.

Viewsroom: Amazon’s JEDI rebellion

23 Aug 2018

Amazon looks set to win the Pentagon’s $10 bln JEDI cloud contract, but Oracle is fighting back. Plus: Is it time for Airbnb to sell its China business? And should Elon Musk be worried about a Chinese Tesla lookalike listing in New York?

Trump’s tariffs threaten Taiwan’s lucky streak

22 Aug 2018

The island has enjoyed decent 3 pct growth for a year thanks to booming exports. But for all Taiwan’s White House fans, U.S. tariffs on China could do collateral damage, even as the mainland tightens screws. It’s bad news for President Tsai as elections loom.

Investment gives U.S. market, economy fresh legs

21 Aug 2018

American companies are pouring a big chunk of their tax-cut windfall into new plant, equipment and software. With the stock-market rally and economic recovery nearing record longevity, the capital-spending surge provides welcome momentum – and insurance against trade troubles.

Malaysia’s China reset imagines Byte and Road

20 Aug 2018

After months of fighting talk, Prime Minister Mahathir Mohamad is striking a softer tone. His PRC visit began in Alibaba's hometown of Hangzhou and included a new-energy deal with carmaker Geely. That suggests an effort to extract tech aid in exchange for infrastructure projects.

Capital retreat turns light on Turkey lookalikes

17 Aug 2018

Other emerging economies also have lots of foreign currency debt or inadequate FX reserves. Some, such as South Africa and Argentina, are already hurting. Breakingviews ranks the countries that look the most vulnerable as flows to riskier markets go into reverse.

Viewsroom: Turkey’s financial crisis may spread

16 Aug 2018

The feud between President Tayyip Erdogan and U.S. President Donald Trump over steel tariffs threatens to turn other emerging markets cold. Breakingviews columnists discuss the global impact of Turkey’s currency meltdown. Plus: A bad bank in China gets whacked by political risk.

China will fake until it makes better muni bonds

16 Aug 2018

The finance ministry told regional governments to hurry issuance of about 1 trln yuan of bonds to drive growth. It’s also stipulating they yield more than the sovereign rate. Despite progress building sustainable funding channels, Beijing mixes its messages to local officials.

Indonesian fight to help rupiah carries risks

15 Aug 2018

The central bank has raised rates to limit the damage to its currency from a Turkey-triggered drop in emerging markets. Meanwhile, the government is slapping tariffs on some imports. Monetary fixes are rarely enough but Jakarta’s solutions may jeopardise welcome economic reforms.

Putin has strong defences against U.S. debt siege

15 Aug 2018

The rouble has slumped on fears that Russia’s sovereign bonds will be next in the crosshairs of U.S. sanctions. That would cause a stink, but the bill may not pass into legislation. If it does, oil prices and Moscow’s low debt mean President Vladimir Putin can weather a crisis.

Soybeans strain Beijing’s trade war messaging

15 Aug 2018

China is likely to buy more of the animal feed ingredient from the United States, even after tariffs. That's despite government assurances it can diversify away from more than $12 bln of annual U.S. purchases. Markets sense it coming; others might soon see through bluster too.

Hadas: Turkey shows damage of fading world order

14 Aug 2018

The country and its foreign creditors have had an irresponsible relationship for decades. The latest crisis is different because one-time supporters like the U.S., EU and IMF are less willing to help, and there are no credible replacements. Prepare for more currency crises.

China’s stealth housing support is looking wobbly

14 Aug 2018

Officials are tweaking a $470 bln liquidity scheme by which the central bank effectively helps upgrade housing in smaller cities. Even a modest change could cause real estate markets to shudder. Little wonder that Chinese property developers tremble with every update.

It’s time to take away Trump’s tariff toys

13 Aug 2018

Using steel duties to punish Turkey over a detained U.S. pastor is an abuse of the president's powers. While national security is a legitimate reason to restrict trade, doing so on a whim hurts America. Congress can be more muscular even if it's not yet prepared to rein Trump in.

South Korea offers cautionary Trump trade tale

13 Aug 2018

Seoul dodged U.S. steel tariffs by agreeing to a quota. The limit, however, was then applied retroactively and prevented exemptions. American manufacturers are now cut off from materials. EU President Jean-Claude Juncker and others will have to keep a close eye on the fine print.

China’s U.S. energy blow is effective but risky

8 Aug 2018

Beijing is slapping a levy on liquified natural gas, a booming American export. Iran’s LNG could fill the void. But that would flout U.S. sanctions, may spark criminal investigations and could bar Chinese firms from accessing dollars. The gamble relies on Trump blinking first.

White House’s small trade deals don’t add up

7 Aug 2018

U.S. officials hailed Morocco’s opening to U.S. poultry, just as they did recent moves by Colombia on rice and Argentina on pork. But projected export gains of $35 mln are chicken feed relative to the $114 bln in American goods threatened by other countries’ retaliatory tariffs.

Erdogan opens Turkish lira to new line of attack

6 Aug 2018

The currency hit a record low against the dollar after the United States said it was reviewing Turkey’s duty-free access to its markets. President Tayyip Erdogan has alienated investors. The tougher he talks to the world’s largest economy, the more they’ll punish Turkish assets.

Only casualties will dissuade Trump on trade war

3 Aug 2018

The White House may increase tariffs on $200 bln of Chinese imports to 25 pct. Big firms like Caterpillar can absorb the cost, but an escalating battle could force smaller businesses to close or fire workers. It may require a heavy toll, though, for the president to call a truce.

Luxury investors take benign view on trade wars

3 Aug 2018

A growing spat between China and the U.S. threatens sales in the sector’s two most important markets. A weaker yuan would make overseas shopping pricier for spendthrift Chinese tourists too. With share prices near record highs, investors are exposed to anything but all-out peace.