■ China
Forex rules tightened
China's foreign exchange watchdog yesterday said it will tighten up on offshore funds flowing into foreign companies' coffers in a bid to thwart currency specu-lation and slow growth in foreign debt. "The new rule will help to crack down on illegal forex speculation, curb the fast growth of capital inflows and foreign debt, and maintain a stable monetary policy and rate of exchange for the yuan," the State Administration of Foreign Exchange said in a statement. With Beijing under pressure from major trading partners to revalue its currency, speculative funds, or "hot-money," have poured into the country on expectations of a revalua-tion of the yuan. Following investigations last year, the agency found foreign com-panies were using offshore funds in China to conduct business that "went beyond normal operations." Now, when applying to bring in foreign exchange funds of US$200,000 or more, foreign-invested companies must present documents explaining the use of the funds, the agency said.
■ Aviation
AirAsia sees tough fight
Malaysian no-frills airline AirAsia warned yesterday of an industry shake-out as more carriers enter the market but said it is ahead of the pack and will expand its fleet and maintain low fares despite rising fuel costs. Chief executive Tony Fernandes also said AirAsia's initial public offering (IPO) slated for September is on track but talks with Singapore's state investment arm, Temasek Holdings, on taking a stake in the airline are expected to be put on hold until after the listing. "The low-fare market is going to be very, very crowded and very few are going to survive," with budget carriers not only fighting among themselves but also with other major airlines which had started to slash prices, Fernandes said. "Many others are trying to emulate us but we have a two-and-a-half years advantage, so we'll take it as it comes." Fernandes said AirAsia planned to expand its fleet from 17 aircraft to 24 by October and 36 by June next year.
■ Automobiles
Production pact nears end
DaimlerChrysler will stop making Dodge and Chrysler cars at Mitsubishi Motors Corp's central Illinois auto plant next year, the com-pany said. The decision comes at the end of a five-year agreement, and is not related to recent financial troubles at Mitsubishi Motors, plant spokesman Dan Irvin told The Panta-graph newspaper in Bloom-ington, Illinois for a story in yesterday's edition. Chrysler Group spokesman Dave Elshoff declined to say if the company would build other DaimlerChrysler vehicles at Mitsubishi Motors' only North American manufac-turing facility. The Normal plant produced 156,800 vehicles in the fiscal year that ended in March.
■ Retailing
Wal-Mart gets Chicago OK
Wal-Mart won Chicago City Council approval on Wed-nesday to build its first store in Chicago after months of delay and intense lobbying by the chain's foes and supporters. The council's action means that Detroit and New York City are the only top-10 urban markets in the US without a Wal-Mart store or approval to build one. The victory for Wal-Mart comes after an expensive defeat last month in the Los Angeles suburb of Inglewood, where voters rejected a superstore. However, the city council rejected an application for a second store in the South Side neighborhood.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
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