■ 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.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
A clandestine US Navy special missions unit colloquially known as SEAL Team 6 has been training for missions to assist Taiwan’s defense against an attack by China, the Financial Times said in a report yesterday. The navy commando team famous for killing Osama bin Laden in Abbottabad, Pakistan, has been conducting training to take part in a Taiwan conflict at its Dam Neck headquarters in Virginia Beach for more than one year, it said, citing sources familiar with the matter. “The secret training underlines the increased US focus on deterring China from attacking Taiwan, while stepping up preparations for such an event,”
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