United States' scrutiny of China continues to intensify. According to Reuters, the US is investigating China Mobile, China Telecom, and China Unicom for potential espionage.&nbsp;

Reuters suggests that this probe is happening on the sidelines without official confirmation. The US has recently strengthened oversight of China, with multiple tariffs imposed on specific Chinese goods. While AI has been at the forefront of US scrutiny of China, similar tariffs are underway. The companies are accused of exploiting access to American data and sharing it with Beijing.&nbsp;

The three companies have long been in the US crosshairs. Regulatory authorities denied China Mobile's application to provide telephone service in 2019, and similarly, for the other two companies in 2021 &amp; 2022, respectively. The companies were later barred from providing broadband service. According to the regulators, 'serious national security and law enforcement risks' are involved. Investigators are also probing the companies' cloud offerings.

The government agencies cited nine instances where China Telecom misrouted China Telecom misrouted internet traffic through China. This leaves the US vulnerable to risks of being intercepted &amp; manipulated. China Telecom has denied the government's allegations, stating that routing problems are not intentional.

The Chinese embassy in Washington has voiced concerns over the US' growing scrutiny. <a href="https://www.wionews.com/business-economy/chinese-premier-counters-overcapacity-claims-says-we-enrich-global-supply-734889">Chinese Premier Li Qiang</a> hit back at the US and the European Union on claims that Chinese firms benefit from unfair subsidies and 'flood' global markets with cheap goods. These comments came during his address at a World Economic Forum meeting in Dalian.

'China's production of advanced electric vehicles, lithium-ion batteries and photovoltaic products, first met out domestic demand, but also enrich global supply', he said in his opening remarks. 'The rapid rise of China's new industries is rooted in our own unique comparative advantages', he added.

United States' scrutiny of China continues to intensify. According to Reuters, the US is investigating China Mobile, China Telecom, and China Unicom for potential espionage.

United States' scrutiny of China continues to intensify. According to Reuters, the US is investigating China Mobile, China Telecom, and China Unicom for potential espionage. Reuters suggests that this probe is happening on the sidelines without official confirmation. The US has recently strengthened oversight of China, with multiple tariffs imposed on specific Chinese goods. While AI has been at the forefront of US scrutiny of China, similar tariffs are underway. The companies are accused of exploiting access to American data and sharing it with Beijing. The three companies have long been in the US crosshairs. Regulatory authorities denied China Mobile's application to provide telephone service in 2019, and similarly, for the other two companies in 2021 & 2022, respectively. The companies were later barred from providing broadband service. According to the regulators, 'serious national security and law enforcement risks' are involved. Investigators are also probing the companies' cloud offerings. The government agencies cited nine instances where China Telecom misrouted China Telecom misrouted internet traffic through China. This leaves the US vulnerable to risks of being intercepted & manipulated. China Telecom has denied the government's allegations, stating that routing problems are not intentional. The Chinese embassy in Washington has voiced concerns over the US' growing scrutiny. Chinese Premier Li Qiang hit back at the US and the European Union on claims that Chinese firms benefit from unfair subsidies and 'flood' global markets with cheap goods. These comments came during his address at a World Economic Forum meeting in Dalian. 'China's production of advanced electric vehicles, lithium-ion batteries and photovoltaic products, first met out domestic demand, but also enrich global supply', he said in his opening remarks. 'The rapid rise of China's new industries is rooted in our own unique comparative advantages', he added.

US probes China's telecom 'espionage': 3 companies under scrutiny

Argentina has officially entered a technical recession in the first quarter of the year.

Official data released on Monday points out the economic challenges faced during President Javier Milei's administration.

The country's gross domestic product (GDP) shrank by 2.6 per cent in the first quarter compared to the final quarter of 2023. This marks the second consecutive quarter of contraction, meeting the usual definition of a recession.

President Milei, who assumed office in December after a surprising election victory, has put in place strict austerity measures to bring back fiscal stability.

His campaign was notable for its striking imagery, such as the use of a chainsaw to symbolise his dedication to reducing government spending and achieving a balanced budget.

The most recent data from the INDEC statistics agency has shown a significant increase in the unemployment rate, which has risen to 7.7 per cent in the first quarter from 5.7 per cent at the end of last year.

This means that around 300,000 more people are unemployed compared to the previous quarter.

Additionally, there has been a sharp increase in inflation and a recession, which have greatly affected consumers and led to decreased sales in important sectors such as beef.

Moreover, budget cuts have caused a halt in state infrastructure projects by Milei, resulting in significant job losses in the construction industry.

As an economist and former pundit, Milei has argued that strict fiscal measures are essential for stabilising Argentina's finances after years of deficits and frequent sovereign debt defaults. He believes these measures will eventually rebuild the country's reputation with global investors.

Despite the immediate economic pain, Milei's focus on achieving a fiscal surplus has had a positive effect on the financial markets, with bonds and equities rallying significantly.

The broader economy has suffered, with rising poverty and homelessness becoming more prevalent. Milei remains confident that the tough fiscal approach will eventually lead to economic recovery.

The data for the first quarter showed a year-over-year economic decline of 5.1 per cent, which was slightly better than analysts' expectations of a 5.25 per cent contraction.

Private consumption decreased by 6.7 per cent yearly, while public consumption also dropped by 5 per cent during the same period.

Imports experienced a significant decline of 20.1 per cent, whereas exports showed a notable increase of 26.1 per cent.

(With inputs from Reuters)

Argentina has officially entered a technical recession in the first quarter of the year. Official data released on Monday points out the economic challenges faced during President Javier Milei's administration.

Argentina has officially entered a technical recession in the first quarter of the year. Official data released on Monday points out the economic challenges faced during President Javier Milei's administration. The country's gross domestic product (GDP) shrank by 2.6 per cent in the first quarter compared to the final quarter of 2023. This marks the second consecutive quarter of contraction, meeting the usual definition of a recession. President Milei, who assumed office in December after a surprising election victory, has put in place strict austerity measures to bring back fiscal stability. His campaign was notable for its striking imagery, such as the use of a chainsaw to symbolise his dedication to reducing government spending and achieving a balanced budget. The most recent data from the INDEC statistics agency has shown a significant increase in the unemployment rate, which has risen to 7.7 per cent in the first quarter from 5.7 per cent at the end of last year. This means that around 300,000 more people are unemployed compared to the previous quarter. Additionally, there has been a sharp increase in inflation and a recession, which have greatly affected consumers and led to decreased sales in important sectors such as beef. Moreover, budget cuts have caused a halt in state infrastructure projects by Milei, resulting in significant job losses in the construction industry. As an economist and former pundit, Milei has argued that strict fiscal measures are essential for stabilising Argentina's finances after years of deficits and frequent sovereign debt defaults. He believes these measures will eventually rebuild the country's reputation with global investors. Despite the immediate economic pain, Milei's focus on achieving a fiscal surplus has had a positive effect on the financial markets, with bonds and equities rallying significantly. The broader economy has suffered, with rising poverty and homelessness becoming more prevalent. Milei remains confident that the tough fiscal approach will eventually lead to economic recovery. The data for the first quarter showed a year-over-year economic decline of 5.1 per cent, which was slightly better than analysts' expectations of a 5.25 per cent contraction. Private consumption decreased by 6.7 per cent yearly, while public consumption also dropped by 5 per cent during the same period. Imports experienced a significant decline of 20.1 per cent, whereas exports showed a notable increase of 26.1 per cent. (With inputs from Reuters)

Argentina enters technical recession amid austerity measures

Chinese retailers are bracing for a tough near-term future following a dull performance during the mid-year online shopping festival, which has cast a shadow over the recovery projections of China’s economy.

For the first time, e-commerce sales declined during the 618 festival, reflecting growing pressures on retailers amid a fierce price war.

The 618 festival, named after the founding date of e-commerce giant JD.com, has evolved into China’s second-largest annual sales event, only surpassed by Singles Day in November.

Both events have highlighted the strong growth of Chinese consumerism, providing a boost in sales for platforms and brands.

However, this year’s 618 festival showed the challenges of getting consumers to spend, as Alicia Garcia-Herrero, Asia Pacific chief economist at Natixis, stated, "If they're not spending during this (618 sale), when on earth are they going to consume?".

The pandemic has led to year-round discounts from retailers aiming to attract cautious consumers, which has diluted the impact of major shopping festivals. Last year, Singles Day sales grew by just 2 per cent.

Although discounting has slowed the migration of consumers from platforms like JD.com and Alibaba's Tmall and Taobao to low-cost competitors such as Pinduoduo, it has not boosted consumer spending.

Alibaba's domestic e-commerce revenue grew by only 4 per cent in recent quarterly results, while its shares are down about 5 per cent this year, and JD.com shares have fallen over 3 per cent.

The greater concern is the constantly weak consumer sentiment since 2022. 
A Bank of America survey in June indicated further weakening, with only 45 per cent of respondents planning to increase spending in the next six months, down from 55 per cent in April.

Moreover, only 31 per cent expect an income increase over the same period, a 10-point drop from April.

Josh Gardner, CEO of Kung Fu Data, which manages online stores for numerous global brands, explained that Chinese e-commerce is often called "Everest commerce" due to its sales peaks during events like 618 and Singles Day. 
He noted that these peaks might become less pronounced as consumers gravitate towards everyday discounts, such as those available through livestream shopping on platforms like Douyin. Gardner observed, "What we're seeing this year is a shift away from full-price retail altogether. It's more rational consumption and caution and looking for value".

Chinese consumers' reluctance to spend, driven by concerns over personal wealth amid a real estate slump, slow wage growth, and high youth unemployment, threatens China's economic growth target of "around 5 per cent" this year. 
Festivals like 618, instead of boosting consumption, might hinder recovery by encouraging frugality. Kang Li, a 45-year-old sales worker in Changsha, exemplifies this trend. She focused her 618 purchases on essentials and planned not to buy more until Singles Day.

Jason Yu, Greater China Managing Director at Kantar Worldpanel, warned that retailers face a challenging period ahead as consumers stockpiled essentials during 618, leading to what he termed an "overdraft of future consumption potential." He forecasts that July will be particularly tough for retailers. 
Garcia-Herrero of Natixis forecast that retail sales in the second half of the year would grow only in low single digits, reducing consumption’s contribution to China’s GDP. "This is terrible news for rebalancing the global economy because China will continue to have to export its way out of trouble," she said.

(With inputs from Reuters)

Chinese retailers are bracing for a tough near-term future following a dull performance during the mid-year online shopping festival, which has cast a shadow over the recovery projections of China’s economy.

Chinese retailers are bracing for a tough near-term future following a dull performance during the mid-year online shopping festival, which has cast a shadow over the recovery projections of China’s economy. For the first time, e-commerce sales declined during the 618 festival, reflecting growing pressures on retailers amid a fierce price war. The 618 festival, named after the founding date of e-commerce giant JD.com, has evolved into China’s second-largest annual sales event, only surpassed by Singles Day in November. Both events have highlighted the strong growth of Chinese consumerism, providing a boost in sales for platforms and brands. However, this year’s 618 festival showed the challenges of getting consumers to spend, as Alicia Garcia-Herrero, Asia Pacific chief economist at Natixis, stated, "If they're not spending during this (618 sale), when on earth are they going to consume?". The pandemic has led to year-round discounts from retailers aiming to attract cautious consumers, which has diluted the impact of major shopping festivals. Last year, Singles Day sales grew by just 2 per cent. Although discounting has slowed the migration of consumers from platforms like JD.com and Alibaba's Tmall and Taobao to low-cost competitors such as Pinduoduo, it has not boosted consumer spending. Alibaba's domestic e-commerce revenue grew by only 4 per cent in recent quarterly results, while its shares are down about 5 per cent this year, and JD.com shares have fallen over 3 per cent. The greater concern is the constantly weak consumer sentiment since 2022. A Bank of America survey in June indicated further weakening, with only 45 per cent of respondents planning to increase spending in the next six months, down from 55 per cent in April. Moreover, only 31 per cent expect an income increase over the same period, a 10-point drop from April. Josh Gardner, CEO of Kung Fu Data, which manages online stores for numerous global brands, explained that Chinese e-commerce is often called "Everest commerce" due to its sales peaks during events like 618 and Singles Day. He noted that these peaks might become less pronounced as consumers gravitate towards everyday discounts, such as those available through livestream shopping on platforms like Douyin. Gardner observed, "What we're seeing this year is a shift away from full-price retail altogether. It's more rational consumption and caution and looking for value". Chinese consumers' reluctance to spend, driven by concerns over personal wealth amid a real estate slump, slow wage growth, and high youth unemployment, threatens China's economic growth target of "around 5 per cent" this year. Festivals like 618, instead of boosting consumption, might hinder recovery by encouraging frugality. Kang Li, a 45-year-old sales worker in Changsha, exemplifies this trend. She focused her 618 purchases on essentials and planned not to buy more until Singles Day. Jason Yu, Greater China Managing Director at Kantar Worldpanel, warned that retailers face a challenging period ahead as consumers stockpiled essentials during 618, leading to what he termed an "overdraft of future consumption potential." He forecasts that July will be particularly tough for retailers. Garcia-Herrero of Natixis forecast that retail sales in the second half of the year would grow only in low single digits, reducing consumption’s contribution to China’s GDP. "This is terrible news for rebalancing the global economy because China will continue to have to export its way out of trouble," she said. (With inputs from Reuters)

China’s retailers face grim outlook post disappointing 618 shopping festival

The price Japanese companies charge each other for services increased 2.5 per cent in May compared to last year, indicating that businesses are passing on rising labour costs to their clients. This is according to Reuters.

This rise, however, is slower than the 2.7 per cent gain observed in April. 
The Bank of Japan (BOJ) data also showed that an index measuring service prices with high labour content remained unchanged at 2.5 per cent year-on-year.

According to a report by Associate Press, even though this growth in business service prices, Japan's economy contracted at an annualised rate of 1.8 per cent in the first quarter of 2023. This is a slight improvement from the initial estimate of a 2.0 per cent decline. The revision can be attributed to an upward adjustment in private sector investments, which went from -0.5 per cent to -0.4 per cent, according to data provided by the Cabinet Office.

Japan's GDP, a measure of the nation's economic output, remained negative due to a decrease in exports and consumption compared to the previous quarter. The economy also witnessed a 0.5 per cent decline on a quarter-to-quarter basis in the January-March period.

Slow wage growth and rising import prices due to the weakening yen against the US dollar have been hurdles for the Japanese economy. The dollar has recently been trading at nearly 157 yen, compared to 140 yen a year ago.

While the weak yen has boosted tourism, it has also made imports more expensive, impacting a nation that relies heavily on energy imports. Stagnant consumer spending, which makes up half of Japan's economic activity, has further burdened the economy.

Another factor weighing on the economy is the ongoing scandal involving deceptive vehicle testing by major automakers, including Toyota, which has damaged Japan's reputation for quality. The scandal has led to production halts on some models.

Government officials have raided the headquarters of several automakers, including Honda and Mazda, investigating their testing practices. Toyota's chairman recently apologised for the widespread fraudulent testing, which involved the use of incorrect data and improper testing procedures. While the safety of the vehicles was not compromised, the companies aimed to expedite the testing process.

Investors are closely following the upcoming meeting of the Bank of Japan's monetary policy board. The central bank raised interest rates earlier this year for the first time since 2007, but only marginally, to a range of 0 per cent to 0.1 per cent. S&amp;P Global Market Intelligence highlighted concerns about the weak yen and rising input costs faced by Japanese manufacturers.

Japan's unemployment rate remains low at around 2.6 per cent, one of the lowest among major economies. However, the country faces a serious labour shortage due to its declining birth rate, which hit a record low last year, along with a decrease in marriages.

Analysts warn that these demographic trends could pose a long-term threat, potentially weakening Japan's global influence and even impacting its security in the future, given the country's already low per capita output.

The International Monetary Fund (IMF) predicts that Japan's GDP will fall to the fifth-largest globally by next year, surpassed by India.

(With inputs from Reuters and Associate Press)

The price Japanese companies charge each other for services increased 2.5 per cent in May compared to last year, indicating that businesses are passing on rising labour costs to their clients.

The price Japanese companies charge each other for services increased 2.5 per cent in May compared to last year, indicating that businesses are passing on rising labour costs to their clients. This is according to Reuters. This rise, however, is slower than the 2.7 per cent gain observed in April. The Bank of Japan (BOJ) data also showed that an index measuring service prices with high labour content remained unchanged at 2.5 per cent year-on-year. According to a report by Associate Press, even though this growth in business service prices, Japan's economy contracted at an annualised rate of 1.8 per cent in the first quarter of 2023. This is a slight improvement from the initial estimate of a 2.0 per cent decline. The revision can be attributed to an upward adjustment in private sector investments, which went from -0.5 per cent to -0.4 per cent, according to data provided by the Cabinet Office. Japan's GDP, a measure of the nation's economic output, remained negative due to a decrease in exports and consumption compared to the previous quarter. The economy also witnessed a 0.5 per cent decline on a quarter-to-quarter basis in the January-March period. Slow wage growth and rising import prices due to the weakening yen against the US dollar have been hurdles for the Japanese economy. The dollar has recently been trading at nearly 157 yen, compared to 140 yen a year ago. While the weak yen has boosted tourism, it has also made imports more expensive, impacting a nation that relies heavily on energy imports. Stagnant consumer spending, which makes up half of Japan's economic activity, has further burdened the economy. Another factor weighing on the economy is the ongoing scandal involving deceptive vehicle testing by major automakers, including Toyota, which has damaged Japan's reputation for quality. The scandal has led to production halts on some models. Government officials have raided the headquarters of several automakers, including Honda and Mazda, investigating their testing practices. Toyota's chairman recently apologised for the widespread fraudulent testing, which involved the use of incorrect data and improper testing procedures. While the safety of the vehicles was not compromised, the companies aimed to expedite the testing process. Investors are closely following the upcoming meeting of the Bank of Japan's monetary policy board. The central bank raised interest rates earlier this year for the first time since 2007, but only marginally, to a range of 0 per cent to 0.1 per cent. S&P Global Market Intelligence highlighted concerns about the weak yen and rising input costs faced by Japanese manufacturers. Japan's unemployment rate remains low at around 2.6 per cent, one of the lowest among major economies. However, the country faces a serious labour shortage due to its declining birth rate, which hit a record low last year, along with a decrease in marriages. Analysts warn that these demographic trends could pose a long-term threat, potentially weakening Japan's global influence and even impacting its security in the future, given the country's already low per capita output. The International Monetary Fund (IMF) predicts that Japan's GDP will fall to the fifth-largest globally by next year, surpassed by India. (With inputs from Reuters and Associate Press)

Japan's business service prices rise as companies pass on labour costs

Chinese Premier Li Qiang hits back at the US and the European Union on claims that Chinese firms benefit from unfair subsidies and 'flood' global markets with cheap goods. His comments came during his address at a World Economic Forum meeting in Dalian.

'China's production of advanced electric vehicles, lithium-ion batteries and photovoltaic products, first met out domestic demand, but also enrich global supply', he said in his opening remarks. 'The rapid rise of China's new industries is rooted in our own unique comparative advantages', he added.

China and the European Union are preparing to host talks on the planned EV tariffs on Chinese EVs. China is already facing tariff hikes from the US, with Canada also contemplating similar tariffs. China is facing a slowdown in domestic demand, making it paramount for the second-largest economy to expand its exports. This has triggered trade impositions by major economies, with the US &amp; the EU at the forefront.

China is currently using various tactics to avert EU tariffs. The country is already contemplating a probe into EU pork imports. China is also talking to other stakeholders, including German car manufacturers, to persuade the EU to reverse its decision. 'The continuous emergence of economies of scale can effectively dilute enterprises' innovation costs, which is the real source of the strong competitiveness of China's new industries', Li said.

China denies overcapacity problems, stating that demand will soon equal supply as the economy recovers. The country is also maintaining its growth target of 5 per cent for 2024. Still, recovery seems subdued due to domestic slump and trade tensions with major markets.

Chinese Premier Li Qiang hits back at the US and the European Union on claims that Chinese firms benefit from unfair subsidies and 'flood' global markets with cheap goods.

Chinese Premier Li Qiang hits back at the US and the European Union on claims that Chinese firms benefit from unfair subsidies and 'flood' global markets with cheap goods. His comments came during his address at a World Economic Forum meeting in Dalian. 'China's production of advanced electric vehicles, lithium-ion batteries and photovoltaic products, first met out domestic demand, but also enrich global supply', he said in his opening remarks. 'The rapid rise of China's new industries is rooted in our own unique comparative advantages', he added. China and the European Union are preparing to host talks on the planned EV tariffs on Chinese EVs. China is already facing tariff hikes from the US, with Canada also contemplating similar tariffs. China is facing a slowdown in domestic demand, making it paramount for the second-largest economy to expand its exports. This has triggered trade impositions by major economies, with the US & the EU at the forefront. China is currently using various tactics to avert EU tariffs. The country is already contemplating a probe into EU pork imports. China is also talking to other stakeholders, including German car manufacturers, to persuade the EU to reverse its decision. 'The continuous emergence of economies of scale can effectively dilute enterprises' innovation costs, which is the real source of the strong competitiveness of China's new industries', Li said. China denies overcapacity problems, stating that demand will soon equal supply as the economy recovers. The country is also maintaining its growth target of 5 per cent for 2024. Still, recovery seems subdued due to domestic slump and trade tensions with major markets.

Chinese Premier counters 'overcapacity' claims, says we 'enrich global supply'

Quant Mutual Fund, one of India's largest asset managers overseeing $11 billion, is facing a regulatory probe by the Securities and Exchange Board of India (SEBI). SEBI is probing alleged irregularities in Quant's Management and investment practices, with search and seizure operations conducted at locations in Mumbai and Hyderabad, according to a Moneycontrol Report.

Quant Mutual Fund has reacted to the probe. The company stated, 'We will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis.' The fund house has grown exponentially in the recent year, from managing Rs 100 crore in 2019 to over Rs 93,000 crore currently. The fund has been a key beneficiary of the surging inflows into the stock market from local individual investors.

At the core of SEBI's investigation is the practice of 'front-running.' Front-running is the illegal practice of trading stock or any other financial asset by a broker with inside knowledge of a future transaction that could affect prices. In this, a fund manager executes orders from their own account before executing orders from their clients.

This is detrimental to ordinary investors, who are exploited for profits. Investors end up paying more for securities due to artificial price movements.

SEBI has taken similar actions in 2022 on Axis Mutual Fund for front-running. This resulted in 21 entities being barred from capital markets.

Quant Mutual Fund faces severe penalties and possible suspension if the claims hold ground. The probe is set to weigh on smaller stocks the fund holds, such as RBL Bank, Aasti Pharmalabs, and metal machinery maker Ador Welding.

Quant Mutual Fund, one of India's largest asset managers overseeing $11 billion, is facing a regulatory probe by the Securities and Exchange Board of India (SEBI).

Quant Mutual Fund, one of India's largest asset managers overseeing $11 billion, is facing a regulatory probe by the Securities and Exchange Board of India (SEBI). SEBI is probing alleged irregularities in Quant's Management and investment practices, with search and seizure operations conducted at locations in Mumbai and Hyderabad, according to a Moneycontrol Report. Quant Mutual Fund has reacted to the probe. The company stated, 'We will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis.' The fund house has grown exponentially in the recent year, from managing Rs 100 crore in 2019 to over Rs 93,000 crore currently. The fund has been a key beneficiary of the surging inflows into the stock market from local individual investors. At the core of SEBI's investigation is the practice of 'front-running.' Front-running is the illegal practice of trading stock or any other financial asset by a broker with inside knowledge of a future transaction that could affect prices. In this, a fund manager executes orders from their own account before executing orders from their clients. This is detrimental to ordinary investors, who are exploited for profits. Investors end up paying more for securities due to artificial price movements. SEBI has taken similar actions in 2022 on Axis Mutual Fund for front-running. This resulted in 21 entities being barred from capital markets. Quant Mutual Fund faces severe penalties and possible suspension if the claims hold ground. The probe is set to weigh on smaller stocks the fund holds, such as RBL Bank, Aasti Pharmalabs, and metal machinery maker Ador Welding.

India's Quant Mutual Fund faces regulatory enquiry

China and the European Union are locked in a trade battle over China's EV overcapacity. The European Commission plans to impose import duties on Chinese EVs, ranging from 17 per cent to 38 per cent, on top of its standard 10 per cent tariff for car imports.

As both countries agree on trade talks, let's see the possible outcomes in-store and the potential global implications.

What are provision measures?

Provisional duties can be imposed within nine months of starting the investigation. Definite duties, the deadline for which is November 3, is the time by which the EU has to conclude if the influx of Chinese EVs is hurting the EU's domestic industry.

Many European countries are reliant on China for EV imports. Germany's economy minister, Robert Habeck, has been vocal about conducting concrete negotiations with China. 'What I suggested to my Chinese partners today is that the doors are open for discussions &amp; I hope that this message was heard.' He said in Shanghai after meeting Chinese officials in Beijing.

The EU Commission is set to deliver its final verdict on July 4. China and EV producers have until July 18 to comment on the findings. The commission has reportedly visited more than 100 sites of EV automakers, both in China and Europe.

Definitive duties are expected to be lower than provisional rates. This is possible as some of the arguments are expected to hold ground. The commission must also consider Tesla's request for a separate duty rate.

EV prices are also expecting a jolt from this outcome. Due to China's competitive pricing, the discounted prices are expected to surge as exporters eye a minimum price to counter export curbs.

Who decides?

The European Commission has full powers to impose duties at the provisional stage, although it does consult EU members. This could potentially help China's cause since major EU members are against tariffs on China.

In case of definite duties, it can be blocked if a qualified EU majority, or 15 EU members, oppose the measures. This means the EU must address domestic industry concerns and keep them in sync with their plans. China is the world's largest car market, and many fear potential losses if tariffs are imposed. Many are concerned about China's retaliation. The pork industry is already reeling from the proposed tariffs on EU pork imports.

Concerned companies can challenge the decision at the European Court of Justice. China can also take the European Union to the World Trade Organisation. Either way, it will be a long process, and a compromised outcome is likely to happen.

China and the European Union are locked in a trade battle over China's EV overcapacity. The European Commission plans to impose import duties on Chinese EVs, ranging from 17 per cent to 38 per cent, on top of its standard 10 per cent tariff for car imports.

China and the European Union are locked in a trade battle over China's EV overcapacity. The European Commission plans to impose import duties on Chinese EVs, ranging from 17 per cent to 38 per cent, on top of its standard 10 per cent tariff for car imports. As both countries agree on trade talks, let's see the possible outcomes in-store and the potential global implications. What are provision measures? Provisional duties can be imposed within nine months of starting the investigation. Definite duties, the deadline for which is November 3, is the time by which the EU has to conclude if the influx of Chinese EVs is hurting the EU's domestic industry. Many European countries are reliant on China for EV imports. Germany's economy minister, Robert Habeck, has been vocal about conducting concrete negotiations with China. 'What I suggested to my Chinese partners today is that the doors are open for discussions & I hope that this message was heard.' He said in Shanghai after meeting Chinese officials in Beijing. The EU Commission is set to deliver its final verdict on July 4. China and EV producers have until July 18 to comment on the findings. The commission has reportedly visited more than 100 sites of EV automakers, both in China and Europe. Definitive duties are expected to be lower than provisional rates. This is possible as some of the arguments are expected to hold ground. The commission must also consider Tesla's request for a separate duty rate. EV prices are also expecting a jolt from this outcome. Due to China's competitive pricing, the discounted prices are expected to surge as exporters eye a minimum price to counter export curbs. Who decides? The European Commission has full powers to impose duties at the provisional stage, although it does consult EU members. This could potentially help China's cause since major EU members are against tariffs on China. In case of definite duties, it can be blocked if a qualified EU majority, or 15 EU members, oppose the measures. This means the EU must address domestic industry concerns and keep them in sync with their plans. China is the world's largest car market, and many fear potential losses if tariffs are imposed. Many are concerned about China's retaliation. The pork industry is already reeling from the proposed tariffs on EU pork imports. Concerned companies can challenge the decision at the European Court of Justice. China can also take the European Union to the World Trade Organisation. Either way, it will be a long process, and a compromised outcome is likely to happen.

Explainer: What happens next in the EU-China EV standoff

The trade war between China and the European Union continues to build. In the latest update, China is looking&nbsp;to convince Germany's car manufacturers with potential&nbsp;benefits if they can persuade the EU to drop tariffs on Chinese EVs.

China currently imposes a 15 per cent fee on passenger vehicles from Germany. The tariff-hit country is considering floating the fees in exchange for scrapping planned EV levies on its imports.

China's Commerce Minister Wang Wentao hinted at the possibilities during a meeting with Germany's Vice Chancellor Robert Habeck on Saturday. Germany has been vocal about the potential threat to business if the EU goes ahead with these tariffs. Germany also faces a threat from China's proposed tariffs on EU pork imports.

German Chancellor Olaf Scholz had earlier underscored the government's wish for a favourable solution. China and the EU are currently under discussion regarding tariffs. China must address these disputes, as Canada joins the league of countries moving against its countries trade tactics.

This also reflects China's tactics to persuade the EU against these tariffs. While proposed duties on EU pork imports are underway, China is also trying the backdoor to squash trade tensions with the EU. China is already facing growing scrutiny from the US regarding 'overcapacity' concerns.

The trade war between China and the European Union continues to build. In the latest update, China is looking to convince Germany's car manufacturers with potential benefits if they can persuade the EU to drop tariffs on Chinese EVs.

The trade war between China and the European Union continues to build. In the latest update, China is looking to convince Germany's car manufacturers with potential benefits if they can persuade the EU to drop tariffs on Chinese EVs. China currently imposes a 15 per cent fee on passenger vehicles from Germany. The tariff-hit country is considering floating the fees in exchange for scrapping planned EV levies on its imports. China's Commerce Minister Wang Wentao hinted at the possibilities during a meeting with Germany's Vice Chancellor Robert Habeck on Saturday. Germany has been vocal about the potential threat to business if the EU goes ahead with these tariffs. Germany also faces a threat from China's proposed tariffs on EU pork imports. German Chancellor Olaf Scholz had earlier underscored the government's wish for a favourable solution. China and the EU are currently under discussion regarding tariffs. China must address these disputes, as Canada joins the league of countries moving against its countries trade tactics. This also reflects China's tactics to persuade the EU against these tariffs. While proposed duties on EU pork imports are underway, China is also trying the backdoor to squash trade tensions with the EU. China is already facing growing scrutiny from the US regarding 'overcapacity' concerns.

China woos German carmakers to avoid EV tariffs

Dutch investment firm Prosus has written off its 9.6 per cent stake in Byju's, recording a fair value loss of 493 million dollars.

Prosus had invested $500 million in Byju's, marking one of the largest ed-tech bets in India. Interestingly, Byju's was valued by the firm at about $5.1 billion in March 2023. Since then, the valuation has been marked down multiple times. Recently, financial firm HSBC also stated that its 10 per cent stake in the company is worth zero. Not only the company, but founder Byju's Raveendran's net worth has also crashed to zero.

Prosus had earlier cited performance issue as a major factor plaguing Byju's. The firm was reportedly 'tired' of fixing the company at every step.

Blackrock also recently wrote off its investment in Byju's, saying the once 'hot company' is worth nothing. Blackrock was also the first investor to publicly signal the company's troubles and had slashed its valuation of the startup to less than $1 billion.

Byju's has been suffering major financial stumbles in recent times. The problems compounded when the company failed to meet financial reporting deadlines and reported low revenues last year.

Byju's tried to raise $200 million this year at a drastically reduced valuation to breathe some life-line into the company, but that effort was also entangled in legal disputes with investors. The National Company Law Tribunal (NCLT) has prohibited Byju from proceeding with the $200 million rights issue.

Dutch investment firm Prosus has written off its 9.6 per cent stake in Byju's, recording a fair value loss of 493 million dollars. Prosus had invested $500 million in Byju's, marking one of the largest ed-tech bets in India.

Dutch investment firm Prosus has written off its 9.6 per cent stake in Byju's, recording a fair value loss of 493 million dollars. Prosus had invested $500 million in Byju's, marking one of the largest ed-tech bets in India. Interestingly, Byju's was valued by the firm at about $5.1 billion in March 2023. Since then, the valuation has been marked down multiple times. Recently, financial firm HSBC also stated that its 10 per cent stake in the company is worth zero. Not only the company, but founder Byju's Raveendran's net worth has also crashed to zero. Prosus had earlier cited performance issue as a major factor plaguing Byju's. The firm was reportedly 'tired' of fixing the company at every step. Blackrock also recently wrote off its investment in Byju's, saying the once 'hot company' is worth nothing. Blackrock was also the first investor to publicly signal the company's troubles and had slashed its valuation of the startup to less than $1 billion. Byju's has been suffering major financial stumbles in recent times. The problems compounded when the company failed to meet financial reporting deadlines and reported low revenues last year. Byju's tried to raise $200 million this year at a drastically reduced valuation to breathe some life-line into the company, but that effort was also entangled in legal disputes with investors. The National Company Law Tribunal (NCLT) has prohibited Byju from proceeding with the $200 million rights issue.

Is Byju’s ‘written off?’ Prosus writes off Byju’s stake, citing $493 million in losses

China is urging the European Union to lift its provisional tariffs on Chinese-made electric vehicles (EVs) ahead of the July 4 deadline, as reported by China's state-run Global Times newspaper.

Talks between the two economic blocs are set to resume after both sides have agreed to engage in discussions.

The EU imposed preliminary duties on Chinese EVs of up to 38.1 per cent in October 2023. The bloc claims these tariffs are necessary to counter what it views as excessive subsidies provided to Chinese EV manufacturers.

China denies the accusations, stating that the success of its EV industry is due to advancements in technology, market dominance, and a strong domestic supply chain for EV components.

Beijing is eager to avoid a full-blown trade war, especially after encountering difficulties due to tariffs imposed by the United States during the Trump administration.

However, China has warned that it will take necessary measures to protect its companies if a trade war erupts.

The EU trade chief Valdis Dombrovskis and China's Commerce Minister Wang Wentao are set to have discussions following a phone call.

This call took place during a visit by the economy minister of Germany to China, where he indicated that the EU is open to discussions on the issue.

The Global Times, citing unnamed observers, said that the EU rescinding the tariffs before the July 4 deadline would be the best outcome.

The newspaper also warned that the EU's increasingly protectionist stance could lead to retaliatory actions from China, potentially escalating trade tensions and harming both economies.

The EU is expected to conclude its investigation into alleged unfair subsidies in November 2024, at which point the provisional tariffs will be finalised.

(With inputs from Reuters)

China is urging the European Union to lift its provisional tariffs on Chinese-made electric vehicles (EVs) ahead of the July 4 deadline, as reported by China's state-run Global Times newspaper.

China is urging the European Union to lift its provisional tariffs on Chinese-made electric vehicles (EVs) ahead of the July 4 deadline, as reported by China's state-run Global Times newspaper. Talks between the two economic blocs are set to resume after both sides have agreed to engage in discussions. The EU imposed preliminary duties on Chinese EVs of up to 38.1 per cent in October 2023. The bloc claims these tariffs are necessary to counter what it views as excessive subsidies provided to Chinese EV manufacturers. China denies the accusations, stating that the success of its EV industry is due to advancements in technology, market dominance, and a strong domestic supply chain for EV components. Beijing is eager to avoid a full-blown trade war, especially after encountering difficulties due to tariffs imposed by the United States during the Trump administration. However, China has warned that it will take necessary measures to protect its companies if a trade war erupts. The EU trade chief Valdis Dombrovskis and China's Commerce Minister Wang Wentao are set to have discussions following a phone call. This call took place during a visit by the economy minister of Germany to China, where he indicated that the EU is open to discussions on the issue. The Global Times, citing unnamed observers, said that the EU rescinding the tariffs before the July 4 deadline would be the best outcome. The newspaper also warned that the EU's increasingly protectionist stance could lead to retaliatory actions from China, potentially escalating trade tensions and harming both economies. The EU is expected to conclude its investigation into alleged unfair subsidies in November 2024, at which point the provisional tariffs will be finalised. (With inputs from Reuters)

China seeks removal of EU tariffs on EVs before July 4 deadline

Australia plans to enforce significant fines on major supermarket chains that violate an industry code of conduct, as the federal government addresses concerns regarding unfair pricing practices affecting suppliers.

Grocery retailers with annual revenues surpassing $3.3 billion, such as Woolworths, Coles, ALDI, and wholesaler Metcash, are now required to obey the code, which was previously voluntary.

The regulatory change comes after a report by former competition minister Craig Emerson, which found that the current code was not effective in addressing the unequal power dynamic between supermarkets and their suppliers, especially farmers.

Under the new rules, supermarkets could be fined up to 10% of their yearly revenue for breaking the code, which mainly governs their interactions with suppliers.

For instance, Woolworths reported $32 billion in food sales in 2023, Coles reported $24.6 billion, Metcash reported $6.6 billion, and ALDI did not disclose its earnings.

"This is all about ensuring fair treatment for families and farmers," said Treasurer Jim Chalmers, Agriculture Minister Murray Watt, and Competition Minister Andrew Leigh in a joint statement. The government intends to give priority to passing legislation to make the code compulsory.

Australia's supermarket sector is highly concentrated, with Woolworths and Coles comprising two-thirds of the country's grocery sales. This announcement is part of six government inquiries into the industry.

Representatives from Woolworths and Coles stated that they would review the report's recommendations and the government's response, and point out their commitment to supporting a sustainable grocery sector.

An ALDI spokesperson indicated the company’s support for making the code mandatory and noted that they were evaluating the final recommendations.

Similarly, a Metcash spokesperson reiterated their commitment to the code and their ongoing efforts to be the preferred partner for suppliers.

The National Farmers Federation has welcomed the proposed changes, noting that they would empower grocery suppliers to voice concerns about market power abuses that drive wholesale prices lower.

Acting CEO Charlie Thomas stated, "These changes should finally give the code the clout it needs to protect farmers," putting a spotlight on the necessity of strong deterrents to influence behaviour within the supply chain.

Additionally, the Australian Competition and Consumer Commission is conducting a separate inquiry into consumer pricing, with findings expected in February 2025.

(With inputs from Reuters)

Australia plans to enforce significant fines on major supermarket chains that violate an industry code of conduct, as the federal government addresses concerns regarding unfair pricing practices affecting suppliers.

Australia plans to enforce significant fines on major supermarket chains that violate an industry code of conduct, as the federal government addresses concerns regarding unfair pricing practices affecting suppliers. Grocery retailers with annual revenues surpassing $3.3 billion, such as Woolworths, Coles, ALDI, and wholesaler Metcash, are now required to obey the code, which was previously voluntary. The regulatory change comes after a report by former competition minister Craig Emerson, which found that the current code was not effective in addressing the unequal power dynamic between supermarkets and their suppliers, especially farmers. Under the new rules, supermarkets could be fined up to 10% of their yearly revenue for breaking the code, which mainly governs their interactions with suppliers. For instance, Woolworths reported $32 billion in food sales in 2023, Coles reported $24.6 billion, Metcash reported $6.6 billion, and ALDI did not disclose its earnings. "This is all about ensuring fair treatment for families and farmers," said Treasurer Jim Chalmers, Agriculture Minister Murray Watt, and Competition Minister Andrew Leigh in a joint statement. The government intends to give priority to passing legislation to make the code compulsory. Australia's supermarket sector is highly concentrated, with Woolworths and Coles comprising two-thirds of the country's grocery sales. This announcement is part of six government inquiries into the industry. Representatives from Woolworths and Coles stated that they would review the report's recommendations and the government's response, and point out their commitment to supporting a sustainable grocery sector. An ALDI spokesperson indicated the company’s support for making the code mandatory and noted that they were evaluating the final recommendations. Similarly, a Metcash spokesperson reiterated their commitment to the code and their ongoing efforts to be the preferred partner for suppliers. The National Farmers Federation has welcomed the proposed changes, noting that they would empower grocery suppliers to voice concerns about market power abuses that drive wholesale prices lower. Acting CEO Charlie Thomas stated, "These changes should finally give the code the clout it needs to protect farmers," putting a spotlight on the necessity of strong deterrents to influence behaviour within the supply chain. Additionally, the Australian Competition and Consumer Commission is conducting a separate inquiry into consumer pricing, with findings expected in February 2025. (With inputs from Reuters)

Australia to enforce industry code on supermarket giants with heavy fines

A recent report by Reuters stated that the Chinese tech giant ByteDance, which owns the popular TikTok app, is working with US chip designer Broadcom to develop an advanced artificial intelligence processor, according to sources familiar with the project.

This collaboration comes amid ongoing tensions between the US and China and aims to ensure a reliable supply of high-end chips for ByteDance.

The chip is constructed on a 5-nanometer architecture and tailored to meet ByteDance's specific needs (an application-specific integrated circuit or ASIC). 
It will adhere to US export restrictions. Sources have disclosed that the manufacturing process is expected to be outsourced to Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker.

 
This collaboration is a significant development because there have been no publicly announced joint efforts between Chinese and US companies on such advanced chip technology (5nm or higher) since the US implemented export controls on these chips in 2022.

Previously, US-China deals in the semiconductor sector have focused on less sophisticated technologies.

The partnership with Broadcom, an existing business partner, is expected to benefit ByteDance in two key ways. First, it will help reduce procurement costs. Second, it will ensure a reliable supply of advanced chips, essential for enhancing ByteDance's AI capabilities across its various apps, including TikTok and its Chinese counterpart, Douyin. 
The design work for the new chip is currently in progress, but mass production is not anticipated to start this year.

According to a source, the "tapeout" stage, which indicates the conclusion of the design phase and the commencement of manufacturing, has not been initiated yet.

ByteDance, Broadcom, and TSMC have not responded to requests for comment. 
 
The demand for advanced AI chips is increasing as ByteDance and other global tech companies heavily invest in generative AI technologies.

However, ByteDance and its Chinese counterparts are facing a significant challenge due to limited access to AI chips compared to their overseas competitors.

The latest chipsets from Nvidia, a leading developer of AI chips, are subject to US export controls. These controls are intended to hinder China's progress in AI and supercomputing capabilities for military use.

As a result, ByteDance is now aggressively seeking alternative solutions. This includes considering US chips designed specifically for the Chinese market, as well as those offered by Huawei, one of the few Chinese manufacturers of AI accelerators.

To enhance its AI capabilities, ByteDance has accumulated Nvidia chips, as per a reliable source. These include A100 and H100 chips obtained before the initial US sanctions, as well as A800 and H800 chips produced by Nvidia for the Chinese market but later subjected to restrictions. The source also disclosed that ByteDance allotted a substantial budget of $2 billion for Nvidia chip purchases last year.

ByteDance not only stockpiled Nvidia chips but also bought Huawei's Ascend 910B chips last year, according to two separate sources.

ByteDance's dedication to developing its in-house AI chip capabilities is evident on its website, which currently has hundreds of job openings related to semiconductors, including 15 positions specifically for ASIC chip designers. The company has also been actively recruiting top talent from other Chinese AI chip firms, as per a source with firsthand knowledge of the situation.

 
(With inputs from Reuters)

A recent report by Reuters stated that the Chinese tech giant ByteDance, which owns the popular TikTok app, is working with US chip designer Broadcom to develop an advanced artificial intelligence processor, according to sources familiar with the project.

A recent report by Reuters stated that the Chinese tech giant ByteDance, which owns the popular TikTok app, is working with US chip designer Broadcom to develop an advanced artificial intelligence processor, according to sources familiar with the project. This collaboration comes amid ongoing tensions between the US and China and aims to ensure a reliable supply of high-end chips for ByteDance. The chip is constructed on a 5-nanometer architecture and tailored to meet ByteDance's specific needs (an application-specific integrated circuit or ASIC). It will adhere to US export restrictions. Sources have disclosed that the manufacturing process is expected to be outsourced to Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker. This collaboration is a significant development because there have been no publicly announced joint efforts between Chinese and US companies on such advanced chip technology (5nm or higher) since the US implemented export controls on these chips in 2022. Previously, US-China deals in the semiconductor sector have focused on less sophisticated technologies. The partnership with Broadcom, an existing business partner, is expected to benefit ByteDance in two key ways. First, it will help reduce procurement costs. Second, it will ensure a reliable supply of advanced chips, essential for enhancing ByteDance's AI capabilities across its various apps, including TikTok and its Chinese counterpart, Douyin. The design work for the new chip is currently in progress, but mass production is not anticipated to start this year. According to a source, the "tapeout" stage, which indicates the conclusion of the design phase and the commencement of manufacturing, has not been initiated yet. ByteDance, Broadcom, and TSMC have not responded to requests for comment. The demand for advanced AI chips is increasing as ByteDance and other global tech companies heavily invest in generative AI technologies. However, ByteDance and its Chinese counterparts are facing a significant challenge due to limited access to AI chips compared to their overseas competitors. The latest chipsets from Nvidia, a leading developer of AI chips, are subject to US export controls. These controls are intended to hinder China's progress in AI and supercomputing capabilities for military use. As a result, ByteDance is now aggressively seeking alternative solutions. This includes considering US chips designed specifically for the Chinese market, as well as those offered by Huawei, one of the few Chinese manufacturers of AI accelerators. To enhance its AI capabilities, ByteDance has accumulated Nvidia chips, as per a reliable source. These include A100 and H100 chips obtained before the initial US sanctions, as well as A800 and H800 chips produced by Nvidia for the Chinese market but later subjected to restrictions. The source also disclosed that ByteDance allotted a substantial budget of $2 billion for Nvidia chip purchases last year. ByteDance not only stockpiled Nvidia chips but also bought Huawei's Ascend 910B chips last year, according to two separate sources. ByteDance's dedication to developing its in-house AI chip capabilities is evident on its website, which currently has hundreds of job openings related to semiconductors, including 15 positions specifically for ASIC chip designers. The company has also been actively recruiting top talent from other Chinese AI chip firms, as per a source with firsthand knowledge of the situation. (With inputs from Reuters)

ByteDance teams up with Broadcom to develop advanced AI chip

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Zee News Rajasthan

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Hardik Bhardwaj

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