A rapid withdrawal of stimulus by some countries could hurt China’s exports, a Chinese Ministry of Commerce official yesterday said, as he warned of “unprecedented” difficulties ahead this year.
The outlook for international trade this year is clouded by uncertain demand, as global economic growth is expected to lose steam amid COVID-19 outbreaks, there are labor shortages, and supply chain disruptions and inflation are rising, Li Xingqian (李興乾), head of the ministry’s foreign trade department, told reporters at a briefing in Beijing.
“Global systemic risks are on the rise due to unbalanced economic recoveries,” he said.
“The overly fast withdrawal of stimulus policies by some countries could trigger contractions in demand, fluctuations in prices and in turn affect the exports of Chinese industry,” he added.
China’s exports surged nearly 30 percent last year to a record high on the back of strong global demand, with the nation’s factories humming along while production in other countries was disrupted by COVID-19 outbreaks.
However, the growth is widely expected to soften this year due to difficulty in exceeding last year’s record levels and a likely decline in demand for work-from-home technology and healthcare equipment as other countries return to more normal consumption patterns.
Foreign shipments are also threatened by developed countries’ push to bring manufacturing back home, rising material costs, clogged transportation routes and a shortage of key components like semiconductors, Li said.
“Developed economies’ pursuit of reshoring of industries is dividing markets and reducing the efficiency of global resource allocation,” he said.
China’s small exporters are squeezed by “sharply higher” costs and stalling profits, despite rising revenues, he added.
Still, the government is confident that full-year trade growth would be kept within a “reasonable” range, helped by expanding new markets and a boost in credit for exporters, which would strengthen their ability to deal with foreign exchange risks, Li said.
JITTERS: Nexperia has a 20 percent market share for chips powering simpler features such as window controls, and changing supply chains could take years European carmakers are looking into ways to scratch components made with parts from China, spooked by deepening geopolitical spats playing out through chipmaker Nexperia BV and Beijing’s export controls on rare earths. To protect operations from trade ructions, several automakers are pushing major suppliers to find permanent alternatives to Chinese semiconductors, people familiar with the matter said. The industry is considering broader changes to its supply chain to adapt to shifting geopolitics, Europe’s main suppliers lobby CLEPA head Matthias Zink said. “We had some indications already — questions like: ‘How can you supply me without this dependency on China?’” Zink, who also
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) received about NT$147 billion (US$4.71 billion) in subsidies from the US, Japanese, German and Chinese governments over the past two years for its global expansion. Financial data compiled by the world’s largest contract chipmaker showed the company secured NT$4.77 billion in subsidies from the governments in the third quarter, bringing the total for the first three quarters of the year to about NT$71.9 billion. Along with the NT$75.16 billion in financial aid TSMC received last year, the chipmaker obtained NT$147 billion in subsidies in almost two years, the data showed. The subsidies received by its subsidiaries —
At least US$50 million for the freedom of an Emirati sheikh: That is the king’s ransom paid two weeks ago to militants linked to al-Qaeda who are pushing to topple the Malian government and impose Islamic law. Alongside a crippling fuel blockade, the Group for the Support of Islam and Muslims (JNIM) has made kidnapping wealthy foreigners for a ransom a pillar of its strategy of “economic jihad.” Its goal: Oust the junta, which has struggled to contain Mali’s decade-long insurgency since taking power following back-to-back coups in 2020 and 2021, by scaring away investors and paralyzing the west African country’s economy.
RE100 INITIATIVE: Exporters need sufficient supplies of renewable energy to meet their global commitments and remain competitive, the economics ministry said Local export-oriented manufacturers, including Taiwan Semiconductor Manufacturing Co (台積電), require sufficient supplies of green energy to maintain their competitiveness and regulations already ensure that renewable energy development adheres to environmental protection principles, the Ministry of Economic Affairs said yesterday, as the legislature imposed further restrictions on solar panel installations. The opposition-led Legislative Yuan yesterday passed third readings to proposed amendments to three acts — the Environmental Impact Assessment Act (環境影響評估法), the Act for the Development of Tourism (發展觀光條例) and the Geology Act (地質法) — which would largely prohibit the construction of solar panels in some areas. The amendments stipulate that ground-mounted solar
RSS