TRADE
Talks to resume next month
China and the US are to hold more talks on trade next month, Beijing said yesterday, following detailed discussions about the issues to be tackled in the negotiations. Chinese Ministry of Commerce spokesman Gao Feng (高峰) expressed confidence in a “successful implementation” of a consensus reached in Dec. 1 talks in Argentina between US President Donald Trump and Chinese President Xi Jinping (習近平). The two sides have been in close contact since then, including a vice-ministerial level call on Wednesday, when they went over arrangements for more talks, and the issues of trade balances and the protection of intellectual property rights, Gao said. “The two sides will arrange consultations including meetings and calls at any time as needed to promote the implementation of the consensus of the heads of state,” Gao told reporters in Beijing. The potential for trade cooperation between the two countries is huge and the nature of win-win cooperation would not change, Gao said.
AUTOMAKERS
US driverless car bill strands
The US Congress will not vote on a bill to speed the introduction of self-driving cars before it adjourns for the year, a blow to companies like General Motors Co (GM) and Alphabet Inc’s Waymo unit, key senators said on Wednesday. Congress is also not to take up a proposal pushed by GM and Tesla Inc to extend or expand a US$7,500 tax credit for electric vehicles, the aides said. US Senator Gary Peters said that the US could get surpassed on self-driving vehicles by China, South Korea and others who “are betting big on the technology and they are developing the regulatory framework to accommodate it.”
AUTOMAKERS
Ghosn could be released
A Tokyo court yesterday unexpectedly decided not to extend the detention of Nissan Motor Co’s ousted chairman, Carlos Ghosn, meaning that he could soon be released from jail, where he has been confined since his arrest for alleged financial misconduct. The Tokyo District Court said it also decided against extending detention for Greg Kelly, a former Nissan executive who was first arrested along with Ghosn on Nov. 19. Lawyers for both men were not immediately available for comment. It was unclear whether prosecutors would appeal the decision. Shin Kukimoto, deputy prosecutor at the Tokyo District Public Prosecutors’ Office, only said that his office would respond “appropriately.” The 10-day detention period in the second instance ran out yesterday.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
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