■ Trade
US trade deficit surges
The US trade deficit surged to a record US$763.6 billion last year owing to new highs for oil prices and the commercial shortfall with China, the government said yesterday. The Commerce Department said the December gap alone was US$61.2 billion, up from US$58.1 billion in November to the disappointment of Wall Street economists, who expected a figure of US$59.5 billion. The annual figure was up from US$716.7 billion in 2005, registering the fifth consecutive year of a record as oil prices struck new highs above US$78 per barrel midway through last year. The US deficit with China grew to a new high of US$232.5 billion last year, up from US$201.5 billion the year before.
■ Trade
Bush approves China sale
US President George W. Bush on Monday cleared the way for a private sector sale to China of high-tech products linked to its railway system and its testing of parts for Boeing aircraft. In a legally required ruling, Bush certified that the sale "is not detrimental to the US space launch industry" and "will not measurably improve the missile or space launch capabilities of the People's Republic of China." The move clears the way for the sale of 20 Honeywell accelerometers to be incorporated into railway geometry measurement systems for China's Ministry of Railways; and equipment and technology associated with the production and testing of composite components for Boeing commercial aircraft. The exports do not pose a threat to US national security or the US space launch industry and will not provide a direct or indirect benefit that improves measurably China's missile, space missile launch, or anti-satellite capabilities, a White House official said.
■ Communications
Hutchison shares plunge
Shares of Hutchison Telecommunications International Ltd (和記電訊) plunged yesterday after it agreed to sell its 67 percent controlling stake in Hutchison Essar India Ltd, one of India's leading cellphone companies, to Vodafone Group PLC. Analysts say the decline was expected, as investors took profits after the conclusion of the stake sale amid uncertainties over how the company will use the cash from the deal. "The debate now is whether they'll hold onto it and reinvest in other telco businesses or whether they'll pay it back up to Hutchison Whampoa," said Morgan Stanley analyst Rob Hart. Hutchison Telecom is a a holding company of Hong Kong-based conglomerate Hutchison Whampoa (和記黃埔). Hutchison Whampoa shareholders are unlikely to "see this cash directly," Hart said.
■ Aerospace
Boeing unveils KC-767
Boeing Co on Monday announced a newly designed KC-767 as its proposed aircraft for a US$40 billion Air Force contract competition to replace 179 refueling planes. The Chicago-based company said at a press conference held in Washington that it tweaked the design of its long-range 767 freighter plane to improve fuel efficiency, among other factors. Boeing is competing against Northrop Grumman Corp, which is expected to offer its KC-30, a modified Airbus A330, at a discounted price. At stake for both competitors is a multiyear contract to replace a portion of the military's older fleet of KC-135 aircraft.
MILESTONE: The foreign minister called the signing ‘a major step forward in US-Taiwan relations,’ while the Presidential Office said it was a symbol of the nations’ shared values US President Donald Trump on Tuesday signed into law the Taiwan Assurance Implementation Act, which requires the US Department of State to regularly review and update guidelines governing official US interactions with Taiwan. The new law is an amendment to the Taiwan Assurance Act of 2020 focused on reviewing guidelines on US interactions with Taiwan. Previously, the state department was required to conduct a one-time review of its guidance governing relations with Taiwan, but under the new bill, the agency must conduct a review “not less than every five years.” It must then submit an updated report based on its findings “not later
A trial run of the north concourse of Taiwan Taoyuan International Airport’s new Terminal 3 is to commence today, the Ministry of Transportation and Communications said yesterday. The eight additional boarding gates would allow for more aircraft parking spaces that are expected to boost the airport’s capacity by 5.8 million passengers annually, Deputy Minister of Transportation and Communications Lin Kuo-shian (林國顯) said. The concourse, designed by a team led by British architect Richard Rogers, provides a refreshing space, Lin said, adding that travelers would enjoy the tall and transparent design that allows sunshine to stream into the concourse through glass curtain walls. The
The Presidential Office today thanked the US for enacting the Taiwan Assurance Implementation Act, which requires the US Department of State to regularly review and update guidelines governing official US interactions with Taiwan. The new law, signed by US President Donald Trump yesterday, is an amendment to the Taiwan Assurance Act of 2020 focused on reviewing guidelines on US interactions with Taiwan. Previously, the department was required to conduct a one-time review of its guidance governing relations with Taiwan, but under the new bill, the agency must conduct such a review "not less than every five years." It must then submit an updated
Taiwanese prosecutors charged Tokyo Electron Ltd for failing to prevent staff from allegedly stealing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) trade secrets, escalating a dispute involving two Asian linchpins of a chip industry increasingly vital to national and economic security. Prosecutors indicted the Japanese company on four counts of contravening the Trade Secrets Act (營業秘密法) and the National Security Act (國家安全法), they said in a statement yesterday. They’re asking a local court to rule in favor of their request for Tokyo Electron pay a fine of up to NT$120 million (US$3.8 million) for failing in its duty to prevent the alleged
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