Connect with us

Business

With trade wars & conflicts, fabled China economy at risk

Published

on

Chinese manufacturing, trade and economy are going down as the country gets busy with conflicts and trade wars (IANS)
Chinese manufacturing, trade and economy are going down as the country gets busy with conflicts and trade wars (IANS)

Chinese President Xi Jinping has been forced to acknowledge that his country’s economic growth is facing a rising external risk and the export-driven model that established China as the factory for the world has run into rough weather.

Addressing a meeting on China’s five-year development plan for 2021-2025 on Saturday, Xi put great emphasis on his “dual circulation” strategy to cut the country’s dependence on overseas markets and technology amidst a widening rift with the United States, Europe and Japan.

“China has strong manufacturing capacity, very large domestic markets and huge investment potentials,” the official Xinhua news agency quoted Xi as saying in a report from Beijing.

Xi put up a brave face saying “China’s economy remains resilient and there are ample policy tools at Beijing’s disposal to ensure growth as globalization slows and unilateralism and protectionism are rising. We must seek our development in a more unstable and uncertain world.”

However, what Xi did not say is that his own policies have ended up killing the geese that laid the golden eggs for China. He is now seen at the world stage as a leader who cannot be trusted. After having used technology and investments from the advanced Western countries to establish the biggest supply chain for manufacturing goods in the world and then exploiting their markets to rake in huge profits, China has literally stabbed them in the back.

The Xi regime’s concealing of facts related to the deadly coronavirus scourge triggered from the meat market in Wuhan and the intimidatory display of naval and air power in the South China Sea along with the military build-up on the Indian border have made the world wary of China. The brazen violation of human rights in Hong Kong and China’s southern province of Xinjiang has further alienated the country.

Sales of goods in overseas markets have helped China to emerge as the fastest growing economy in the world with huge balance of trade surpluses vis-a-vis its leading trade partners such as America and Europe. The trade with India too has been one-sided as cheap Chinese goods have been flooding the market often at the cost of domestic industry. However, with these markets now likely to dry up, China now faces an uphill task to achieve its goal of becoming a high-income nation comparable to the western countries and Japan.

Under the “dual circulation” strategy, Xi aims to boost technological innovation and push Chinese firms up the global value chain so that they create more jobs and incomes within the country to generate a higher domestic demand for goods and services that will also raise the standard of living of its vast population.

Xi Jinping’s “internal circulation” strategy aims to depend on domestic production and consumption for its development. But at the same time Xi also says “internal circulation” will be supported by “external circulation” which in other words means that he wants to have the cake and eat it too. Chinese leaders still favour greater market opening to attract more foreign investment in high-end manufacturing and prevent the exodus of multinational companies from China.

But analysts think matters have gone too far and with the US decoupling from the Chinese economy, other countries have stepped up their plans to scale down economic engagement with the dragon. Japan, for instance, has started offering subsidies to its companies to shift their production lines out of China.

The Trump administration has blacklisted more than 275 China-based companies which include telecom equipment giants Huawei and ZTE and drone producer DJI. Surveillance camera maker Hikvision has been put on the banned list over suppression of China’s Uighur minority which lives in the Xinjiang province. Similarly, Trump signed an executive order on August 14 giving ByteDance 90 days to sell popular short video app TikTok which has access to personal data of millions of US citizens. Some construction companies have also been put on the sanctions list for helping China’s military build-up on disputed islands in the South China Sea.

The Trump administration has moved in a big way to prevent most US companies from conducting business with Huawei, saying the world’s biggest maker of mobile telecommunications equipment and smartphones posed a security risk as it ultimately functioned under the control of an authoritarian Chinese government. The company has been barred from participating in the roll out of 5G operations of advanced countries which has come as a major setback for its expansion plans. Last month, restrictions were tightened further to stop Huawei’s access to commercially available chips from US companies. This is bound to cripple its capacity to produce high-end smartphones, giving rivals such as South Korean electronics giant Samsung and leading US phonemaker Apple a big advantage.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

JLR India launches new Defender SUV

Published

on

By

Jaguar Land Rover. (Photo Twitter@JLR_News)
Jaguar Land Rover. (Photo Twitter@JLR_News)

Mumbai, Oct 15 (IANS) Tata Motors-owned Jaguar Land Rover (JLR) India on Thursday launched the New Land Rover Defender in India.

The new vehicle is available in two distinct body styles, the 90 (3 door) and the 110 (5 door).

According to the company, the New Defender 90 is priced from Rs 73.98 lakh and the New Defender 110 is priced from Rs 79.94 lakh (ex-showroom India).

It is offered with a 2.0 l (litre) ‘Turbocharged four-cylinder petrol engine’, producing 221 kW (300 PS) and 400 Nm of torque.

At present, Jaguar Land Rover vehicles are available in India in 24 cities.

Continue Reading

Business

IT, telecom stocks drag Sensex 560 points down (Ld)

Published

on

By

Bombay Stock Exchange (BSE). (File Photo IANS)
Bombay Stock Exchange (BSE). (File Photo IANS)

Mumbai, Oct 15 (IANS) Indian stock market plunged on Thursday due to heavy selling pressure on IT and telecom stocks.

The BSE Sensex was trading over 500 points lower during the afternoon trade.

Along with weak cues from the global markets on the back of the fading hopes of further stimulus in the US, profit booking also pulled the IT stocks lower.

Around 1.39 p.m., Sensex was at 40,233.54, lower by 561.20 points or 1.38 per cent from the previous close of 40,794.74.

It opened at the day’s high of 41,048.05 and a low of 40,297.34 points.

The Nifty50 on the National Stock Exchange was at 11,818.90, lower by 152.15 points or 1.27 per cent from its previous close.

Continue Reading

Business

Hyundai exports over 2L ‘Made in India’ compact SUV Creta

Published

on

By

Creta (Photo @HyundaiIndia Twitter)
Creta (Photo @HyundaiIndia Twitter)

New Delhi, Oct 15 (IANS) Bolstering the Centre’s ‘Make in India’ drive, automobile major Hyundai Motor India (HMIL) on Thursday said it has exported over two lakh units of ‘Made-in-India’ compact SUV Creta.

“The magnanimous 2,00,000 export milestone achieved by the Creta is a testimony of Hyundai’s undeterred focus and commitment to ‘Make in India, Made for the world’,” said S.S. Kim, MD and CEO, Hyundai Motor India.

“Hyundai’s state-of-the-art plant in Tamil Nadu manufactures global quality products in both domestic and international markets further providing our customers with quality time to lead a happy life.”

The compact SUV was launched in 2015.

In CY 2019, Hyundai Motor India exported 1,81,200 units with 792 customised variants according to country specific preference and demand.

The company had an export share of 26 per cent during CY2019 in passenger car exports from India.

Besides, Hyundai has also surpassed the three million vehicle export milestone earlier in 2020, exporting cars to 88 countries.

At present, the company is exporting 10 models namely — Atos (Santro), Grand i10, Xcent, Grand i10 (Nios) and Grand i10 (Aura), Elite i20, i20 Active, Accent (Verna), Venue and all new Creta.

Continue Reading

Business

Home sales in Delhi-NCR up 38% in Jul-Sep: JLL

Published

on

By

Noida The Supertech Capetown Group Housing sector 74 Noida that was sealed after one of the residents tested positive for COVID-19 infection
Noida The Supertech Capetown Group Housing sector 74 Noida that was sealed after one of the residents tested positive for COVID-19 infection

New Delhi, Oct 14 (IANS) With the gradual lifting of lockdown restrictions, housing demand in the July-September quarter improved and the sale of residential properties increased by around 38 per cent during the period in Delhi-National Capital Region, according to a JLL report.

A total of 3,112 housing units were sold during the period under review, compared to 2,250 units sold in the April-June quarter.

As per the report, most of this traction was witnessed in Noida, which contributed nearly 48 per cent to the overall sales, as it caters to all price segments. Noida was followed by Ghaziabad constituting 31 per cent of the sales and it mainly caters to the mid and affordable segments.

Gurugram accounted for nearly one-fifth of the overall sales during this quarter.

“The quarter saw a preference for ready-to-move-in projects by reputed developers. The affordable and mid segment projects garnered more interest from the homebuyers as compared to high-end and luxury projects,” it said.

The emerging corridors of suburban markets such as Noida-Greater Noida Expressway, Golf Course Extension Road and Dwarka Expressway in Gurugram continue to drive sales on the back of expected augmentation in physical and social infrastructure in these markets.

Given the current business environment, developers exercised restraint and caution in launching new projects, JLL said.

Three projects were launched during the third quarter in the region, two in Gurugram and one in Noida.

“While the launches were in high-end and upper mid segments in Gurugram, the project in Noida catered to the mid segment buyers,” the report said.

Real estate developers continue to focus on offloading the existing unsold inventory and completing the projects under construction. Prices remained range-bound across most of the submarkets within Delhi-NCR during the quarter.

Manish Aggarwal, Managing Director, Delhi NCR, JLL India, said: “With the upcoming festive season, sales are only expected to increase from the current levels. Also, attractive pricing and developers doling out lucrative schemes and freebies will further incentivise the fence sitters to buy homes.”

Continue Reading

Business

FSCA issues norms for market access through ‘authorised persons’

Published

on

By

Bombay Stock Exchange. (File Photo IANS)
Bombay Stock Exchange. (File Photo IANS)

New Delhi, Oct 14 (IANS) The International Financial Services Centres Authority (IFSCA) has issued a regulatory framework for market access through “authorised persons”.

The development comes with a view to widen the investor base for exchange traded products in the International Financial Services Centre and to enhance the secondary market liquidity. The move would help in deepening the market, the IFSCA said in a statement.

An authorised person is any individual, partnership firm, LLP or body corporate who provides access to the trading platform of a stock exchange as an agent of the stock broker.

Under the framework, the stock brokers or trading members — registered with either IFSCA or SEBI or both — of the stock exchanges shall be permitted to provide market access to investors through authorised persons based in foreign jurisdictions.

Continue Reading

Business

FM stresses on structural treatment of debt at G20 meet

Published

on

By

New Delhi Union Finance Minister Nirmala Sitharaman addresses a press conference on Economic issues at the National Media Centre
New Delhi Union Finance Minister Nirmala Sitharaman addresses a press conference on Economic issues at the National Media Centre

New Delhi, Oct 14 (IANS) Finance Minister Nirmala Sitharaman on Wednesday said that there is a need for more structural treatment of debt in the long term.

Addressing the G20 Finance Ministers and Central Bank Governors Meeting, through video conference, she said that the process should primarily be guided by the objective of helping such countries overcome the fiscal stress caused by the pandemic, a Finance Ministry statement said.

Sitharaman underlined that it would be important to take into consideration the circumstances and concerns of both creditors and debtors and that in the process of debt restructuring, care must be taken to not saddle the debtor countries with overly burdensome conditionalities.

The ministers and Governors of G20 countries had gathered to discuss the current global economic outlook and G20’s response to the Covid-19 pandemic, along with other G20 Finance Track priorities for the year 2020.

In the first session, the Finance Minister spoke on updates to the G20 Action Plan in response to Covid-19 which was endorsed by the G20 Finance Ministers and Central Bank Governors on April 15. Sitharaman emphasised that the updated commitments in the G20 Action Plan have to be kept relevant in the current policy context for the action points to remain effective as a policy response to Covid-19.

Explaining the core guiding principles for the updation of the G20 Action Plan commitments, she highlighted the need to balance the health and economic objectives in the recovery plans.

The Finance Minister also spoke about the need to consider heterogeneity of policy responses among member countries, international spillovers from domestic policy actions and reforms required in the global regulatory regimes particularly with respect to the pro-cyclicality of credit rating downgrades.

A key outcome of the G20 Action Plan has been the Debt Service Suspension Initiative (DSSI) which provides time bound suspension of debt service payments for the low-income debtor countries that request forbearance. The initiative was initially in force till end of 2020.

During this meeting, in light of the continued liquidity pressures, the G20 Finance Ministers and Central Bank Governors agreed to extend the DSSI by 6 months, and to examine by the time of the 2021 IMF/WBG Spring Meetings if the economic and financial situation requires a further extension.

Continue Reading

Trending

Hey, wait!

Do you want to receive important news straight to your inbox every week?