https://www.scmp.com/rss/12/feed Global economy news, including budgets, stock markets and analysis. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Andrew Sheng Andrew Sheng We all suffer from nostalgia bias, thinking back to a golden past, remembering the good and forgetting the bad. In looking to the future, we worry about the risks and are fearful of the unknown. This tendency makes us forget how the last financial crisis wiped out quite a few investors and created new wealth. McKinsey Global Institute marked the consultancy’s centennial year by publishing a book called A Century of Plenty, meant to show that mankind never had it so good. It puts forward a bold... https://www.scmp.com/opinion/world-opinion/article/3354470/investors-ai-driven-bubble-risk-forgetting-painful-lessons?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3354470/investors-ai-driven-bubble-risk-forgetting-painful-lessons?utm_source=rss_feed Sat, 23 May 2026 01:30:16 +0000 Daniel Ren Daniel Ren A liquidity drain caused by SpaceX’s gargantuan US share sale is unlikely to ripple into regional markets, including Hong Kong, thanks to global investors’ push to diversify and their growing interest in future profit stars, according to JPMorgan. Hong Kong could still aim for the runner-up position in fundraising this year despite potentially giving up the global initial public offering (IPO) crown to New York, said Paul Uren, the US bank’s Asia-Pacific investment banking head, on... https://www.scmp.com/business/china-business/article/3354467/liquidity-drain-spacexs-mega-listing-unlikely-ripple-hong-kong-jpmorgan?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3354467/liquidity-drain-spacexs-mega-listing-unlikely-ripple-hong-kong-jpmorgan?utm_source=rss_feed Sat, 23 May 2026 01:30:09 +0000 Alice Li,Sylvia Ma,Kandy Wong Alice Li,Sylvia Ma,Kandy Wong In an era when technology seems to defy all limits, one age-old barrier has managed to endure: geography. As geopolitical turbulence continues to disrupt traffic through the Strait of Hormuz – a vital shipping artery, especially for energy – the search for other fuel sources, and other means of transport, has shifted from a strategic luxury to an existential necessity. This need has become particularly acute for China, a major consumer of fossil fuels. Middle Eastern imports remain a significant... https://www.scmp.com/economy/global-economy/article/3354560/putin-left-china-without-pipeline-deal-why-didnt-hormuz-crisis-open-valve?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3354560/putin-left-china-without-pipeline-deal-why-didnt-hormuz-crisis-open-valve?utm_source=rss_feed Fri, 22 May 2026 22:00:13 +0000 Ji Siqi Ji Siqi China’s chief trade negotiator, Li Chenggang, urged Asia-Pacific economies to reject a zero-sum mentality, grow the economic pie together and divide it fairly, as trade representatives from the 21 members of Asia-Pacific Economic Cooperation (Apec) forum convened in the eastern Chinese city of Suzhou for a two-day ministerial meeting. “Apec economies vary in their stages of development, resource endowments and industrial structures, so it is completely normal for them to have different... https://www.scmp.com/economy/china-economy/article/3354559/chinas-top-trade-negotiator-urges-apec-grow-economic-pie-divide-it-fairly?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354559/chinas-top-trade-negotiator-urges-apec-grow-economic-pie-divide-it-fairly?utm_source=rss_feed Fri, 22 May 2026 12:00:09 +0000 David Dodwell David Dodwell Perhaps the most fascinating and important aspects of US President Donald Trump’s jolt to the global economy have been its unintended consequences, especially the impact on relations between China and India. Two consistent aspects of Trump’s meandering narrative are to “make America great again” by bringing manufacturing jobs back to the US, and to hobble China as an economic and strategic threat. A decade later, there has been negligible progress on either objective. Instead, the unintended... https://www.scmp.com/opinion/asia-opinion/article/3354474/india-and-china-are-cautiously-getting-closer-thanks-trump?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3354474/india-and-china-are-cautiously-getting-closer-thanks-trump?utm_source=rss_feed Fri, 22 May 2026 08:30:06 +0000 Xiaofei Xu Xiaofei Xu China overtook the US to become Germany’s top single-country source of foreign direct investment (FDI) last year, a German government report said. There were 228 greenfield and expansion projects from Chinese companies recorded in Germany last year, compared with 206 from the United States, Germany Trade and Invest (GTAI), the government’s economic development and foreign trade agency, said in its annual report, which was published on Thursday. The country’s top five foreign investment sources... https://www.scmp.com/economy/china-economy/article/3354505/its-firms-look-overseas-china-overtakes-us-become-top-foreign-investor-germany?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354505/its-firms-look-overseas-china-overtakes-us-become-top-foreign-investor-germany?utm_source=rss_feed Fri, 22 May 2026 08:02:50 +0000 Xiaofei Xu Xiaofei Xu The Asian Infrastructure Investment Bank (AIIB) has launched a US$10 billion facility to support members affected by conflict in the Middle East, the multilateral development lender announced on Thursday. The Energy, Food Security and Economic Resilience Facility, sitting alongside the bank’s existing financing tools, offers up to US$10 billion over two years to help members tackle urgent needs around energy security, food security and economic resilience, according to a statement published by... https://www.scmp.com/economy/global-economy/article/3354457/aiib-offers-us10-billion-support-members-hit-iran-war-fallout?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3354457/aiib-offers-us10-billion-support-members-hit-iran-war-fallout?utm_source=rss_feed Fri, 22 May 2026 06:00:12 +0000 Alice Li Alice Li China’s landmark Pinglu Canal has entered its final phase of construction and is set to begin trial operations as early as September, with a first shipping route linking the country’s heartlands to the free-trade port of Hainan, according to Chinese state media reports. The Pinglu Canal – China’s most ambitious waterway project in centuries – will stretch 134km (83 miles) from Nanning, capital of the southern Guangxi region, to the Gulf of Tonkin, known as the Beibu Gulf in China. The aim is to... https://www.scmp.com/economy/china-economy/article/3354380/chinas-vast-new-canal-link-southeast-asia-set-open-earlier-expected?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354380/chinas-vast-new-canal-link-southeast-asia-set-open-earlier-expected?utm_source=rss_feed Fri, 22 May 2026 03:00:06 +0000 Frank Chen Frank Chen China will strengthen strategic control over its mineral resources – including rare earths – through a new set of regulations that coordinate mining, processing, utilisation and stockpiling, as policymakers prioritise resource security amid intensifying geopolitical competition. The 79-article regulations on implementing the new mineral resources law were promulgated by Premier Li Qiang and will take effect on June 15. They set out principles for building a more secure reserve system for... https://www.scmp.com/economy/china-economy/article/3354400/china-moves-secure-critical-mineral-supply-chain-sweeping-new-framework?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354400/china-moves-secure-critical-mineral-supply-chain-sweeping-new-framework?utm_source=rss_feed Thu, 21 May 2026 23:00:06 +0000 Carol Yang Carol Yang Three fully laden supertankers – including two Chinese vessels – crossed the Strait of Hormuz on Wednesday, in a possible sign that Tehran may be starting to open up the vital waterway to more shipping traffic. The exit of the three very large crude carriers (VLCCs) came on the same day that Iran confirmed it had allowed 26 vessels to transit the strait – a hefty uptick compared with the level of traffic Iranian forces have generally permitted since the war began. The moves appeared to signal an... https://www.scmp.com/economy/china-economy/article/3354378/2-chinese-supertankers-join-flotilla-exiting-hormuz-stand-appears-thaw?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354378/2-chinese-supertankers-join-flotilla-exiting-hormuz-stand-appears-thaw?utm_source=rss_feed Thu, 21 May 2026 14:00:06 +0000 Ji Siqi Ji Siqi To address widening trade imbalances across the Asia-Pacific region, surplus-heavy nations such as China should be buying more, and deficit-running economies need to bolster their competitiveness, a top Apec official said on Thursday. “China has been developing significantly in recent decades … [becoming] sort of a global producer for the whole world. But now, the next challenge is for China to become the market for the whole world,” said Carlos Kuriyama, director of the Policy Support Unit at... https://www.scmp.com/economy/global-economy/article/3354403/asia-pacific-trade-risks-loom-large-apec-official-warns-protectionism-imbalances?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3354403/asia-pacific-trade-risks-loom-large-apec-official-warns-protectionism-imbalances?utm_source=rss_feed Thu, 21 May 2026 12:30:16 +0000 Emma Ma Emma Ma Despite instability in the Middle East, China Railway Construction Corporation (CRCC) has begun building the world’s largest aircraft maintenance complex in the United Arab Emirates, underscoring China’s growing dominance in overseas infrastructure. The project, worth more than US$5 billion and one of the largest construction deals a Chinese builder has secured in the region, will comprise eight large maintenance hangars for aircraft storage, covering about 1.21 million square metres (13 million... https://www.scmp.com/economy/global-economy/article/3354372/china-breaks-ground-us5b-aviation-complex-uae-iran-war-risks-linger?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3354372/china-breaks-ground-us5b-aviation-complex-uae-iran-war-risks-linger?utm_source=rss_feed Thu, 21 May 2026 11:00:07 +0000 Nicholas Spiro Nicholas Spiro Since the end of March, global financial markets have been pulled in opposite directions. Government bond markets have experienced a slow-motion crash. On May 19, the yield on 30-year US bonds, which moves inversely to its price, rose to nearly 5.2 per cent, its highest level since June 2007. The average yield on 10-year sovereign bonds in the Group of 7 advanced economies has hit a 22-year high. Global stock markets, on the other hand, have been on a tear. Since March 30, the MSCI World Index,... https://www.scmp.com/opinion/asia-opinion/article/3354315/asia-caught-tug-war-between-global-bond-and-stock-markets?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3354315/asia-caught-tug-war-between-global-bond-and-stock-markets?utm_source=rss_feed Thu, 21 May 2026 08:30:05 +0000 Sylvia Ma Sylvia Ma China’s central bank has set the yuan’s daily reference rate against the US dollar at its strongest level in more than three years, as global banks turn increasingly bullish on the Chinese currency. The People’s Bank of China set the yuan’s midpoint rate, also known as the daily fixing rate, at 6.8349 to the US dollar on Thursday – the strongest showing since February 2023. The move followed a 0.22 per cent appreciation in the offshore yuan on Wednesday, after bouts of volatility over the past... https://www.scmp.com/economy/china-economy/article/3354323/chinas-yuan-hits-3-year-high-global-banks-issue-bullish-forecasts?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354323/chinas-yuan-hits-3-year-high-global-banks-issue-bullish-forecasts?utm_source=rss_feed Thu, 21 May 2026 05:15:58 +0000 Daniel Ren,Ann Cao Daniel Ren,Ann Cao Chery Automobile, China’s largest car exporter by deliveries, expects its overseas sales of electric vehicles (EVs) to jump as much as 27 per cent this year, as a global energy crisis spurs demand for battery-powered vehicles. Zhang Guibing, the president of Chery International, said on Wednesday that pure electric and plug-in hybrid models were projected to represent as much as 70 per cent of the carmaker’s total deliveries outside the mainland in 2026. That would equate to roughly 1.05 million... https://www.scmp.com/business/china-business/article/3354280/chinas-chery-sees-its-foreign-ev-sales-topping-1-million-world-wary-energy-crisis?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3354280/chinas-chery-sees-its-foreign-ev-sales-topping-1-million-world-wary-energy-crisis?utm_source=rss_feed Wed, 20 May 2026 23:00:11 +0000 Sylvia Ma Sylvia Ma Washington would not raise future tariffs on Chinese goods above the level stipulated in a trade truce the two countries hammered out late last year, Beijing said, a commitment arising from talks in South Korea held hours before US President Donald Trump’s arrival in the Chinese capital last week. Analysts said the pledge signals a shift in relations between the world’s two largest economies – from unilateral trade shocks towards a phase of “managed competition”. “We hope the US side will honour... https://www.scmp.com/economy/china-economy/article/3354260/china-us-trade-talks-saw-washington-commit-tariff-ceiling-beijing-says?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354260/china-us-trade-talks-saw-washington-commit-tariff-ceiling-beijing-says?utm_source=rss_feed Wed, 20 May 2026 12:00:06 +0000 Alice Li Alice Li China’s exports of rare earth permanent magnets to Japan slightly rebounded in April after slumping the previous month, but Japanese firms warn they are facing “severe” shortages as a diplomatic row between Beijing and Tokyo grinds on. Shipments of permanent magnets from China to Japan rose by 2.5 per cent in April compared with the previous month, according to Chinese customs data released on Wednesday. But the modest rise only partly offset the 17.3 per cent plunge recorded in March. The... https://www.scmp.com/economy/china-economy/article/3354236/japan-feels-squeeze-chinas-rare-earth-magnet-exports-only-partly-recover?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354236/japan-feels-squeeze-chinas-rare-earth-magnet-exports-only-partly-recover?utm_source=rss_feed Wed, 20 May 2026 10:30:05 +0000 Xiaofei Xu Xiaofei Xu Chinese investment in Europe hit a seven-year high of €16.8 billion (US$19.5 billion) in 2025, driven by a strong rebound in mergers and acquisitions (M&A) and record greenfield completions, a new report has found. But the annual study, published on Tuesday by Rhodium Group and the Mercator Institute for China Studies, cautioned that the pipeline may be thinning, with newly announced projects falling under pressure from Beijing’s push to retain industrial capacity at home and Europe’s growing... https://www.scmp.com/economy/china-economy/article/3354235/chinese-investment-europe-surges-7-year-high-despite-rising-trade-tensions?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354235/chinese-investment-europe-surges-7-year-high-despite-rising-trade-tensions?utm_source=rss_feed Wed, 20 May 2026 09:04:18 +0000 Carol Yang Carol Yang Products and applications compatible with BeiDou, China’s home-grown navigation system, have captured 58 per cent of the positioning, navigation and timing (PNT) market in countries that have signed up to the Belt and Road Initiative, according to an industry white paper released on Monday, as Beijing leverages the trillion-yuan sector to expand its technological footprint. There were now more than 20 BeiDou-related service centres in countries taking part in the initiative – China’s... https://www.scmp.com/economy/china-economy/article/3354103/chinas-beidou-leads-gps-other-rivals-across-belt-and-road-network-report?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354103/chinas-beidou-leads-gps-other-rivals-across-belt-and-road-network-report?utm_source=rss_feed Wed, 20 May 2026 01:00:11 +0000 Ji Siqi Ji Siqi Last week, US President Donald Trump landed in China aiming to secure the kind of blockbuster trade deals he championed nine years ago – spanning everything from soybeans to aircraft and energy. By the time he departed, it was clear that reality would fall far short of expectations. Despite Trump hailing a “fantastic deal”, China did not announce the massive buying spree that many had anticipated. Now, just days after Trump’s exit, Russian President Vladimir Putin is arriving in China with... https://www.scmp.com/economy/china-economy/article/3354114/putin-pushing-blockbuster-oil-and-gas-deal-china-will-he-get-it?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354114/putin-pushing-blockbuster-oil-and-gas-deal-china-will-he-get-it?utm_source=rss_feed Tue, 19 May 2026 22:00:06 +0000 Syed Munir Khasru Syed Munir Khasru US President Donald Trump’s visit to Beijing, at a time of rising tensions over Iran, sanctions, tariffs and Taiwan, shows how far the Hormuz crisis has travelled beyond the battlefield. What began as a regional war is now touching energy markets, currency politics and the balance of influence between Washington and Beijing. The US is trying to keep Gulf and Asian partners anchored to the US dollar system, while China continues to push for wider use of the renminbi in trade transactions. Whether... https://www.scmp.com/opinion/china-opinion/article/3353360/malacca-strait-could-be-next-hinge-point-if-asia-isnt-careful?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3353360/malacca-strait-could-be-next-hinge-point-if-asia-isnt-careful?utm_source=rss_feed Tue, 19 May 2026 21:30:05 +0000 Sylvia Ma Sylvia Ma With new data suggesting a global retreat from US Treasuries in March – the first full month of the US-Israel war on Iran – market worries are on the rise over whether the sell-off could deepen, as interest rate decisions under new Federal Reserve chair Kevin Warsh, US debt sustainability and prolonged Middle East tensions raise investor concerns. Analysts are currently weighing mounting inflation pressures – which have driven Treasury yields sharply and placed the 30-year yield at its highest... https://www.scmp.com/economy/china-economy/article/3354069/world-retreats-us-treasuries-will-sell-deepen?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354069/world-retreats-us-treasuries-will-sell-deepen?utm_source=rss_feed Tue, 19 May 2026 14:00:05 +0000 Xinyi Wu Xinyi Wu A prominent American business group in China has called for expanded energy trade between the world’s two largest economies – a move first floated by US President Donald Trump during his state visit to Beijing last week. Analysts, however, warn that uncompetitive pricing could limit Chinese demand. “Energy remains a centrepiece of the bilateral relationship,” said Markel Hubinette, who sits on the American Chamber of Commerce in China’s board of governors. Speaking at the Global Trade and... https://www.scmp.com/economy/global-economy/article/3354102/calls-grow-us-china-energy-trade-expansion-after-trumps-visit-it-feasible?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3354102/calls-grow-us-china-energy-trade-expansion-after-trumps-visit-it-feasible?utm_source=rss_feed Tue, 19 May 2026 10:00:13 +0000 Xiaofei Xu Xiaofei Xu With their domestic profits narrowing and production capacity expanding, China’s firms are continuing to widen their overseas footprints in search of new, more lucrative markets. In this series, we examine China Inc.’s next phase of “going global” and the complex, challenging international environment its companies have chosen to enter. Not long ago, plans were in motion to build an enormous battery factory in the Belgian countryside. If completed, it would have created an estimated 2,000 jobs... https://www.scmp.com/economy/china-economy/article/3353994/chinas-firms-have-glaring-weakness-they-face-barrage-eu-probes?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3353994/chinas-firms-have-glaring-weakness-they-face-barrage-eu-probes?utm_source=rss_feed Tue, 19 May 2026 01:00:10 +0000 Daniel Ren Daniel Ren The financial and commercial hub of mainland China is pinning its economic hopes on emerging industries such as autonomous driving and solid-state electric vehicle (EV) batteries to sustain growth following a robust start to 2026. Shanghai Mayor Gong Zheng said the city remained confident about achieving a 5 per cent economic expansion this year, buoyed by a strategy to attract foreign businesses and bolster local tech innovations. “We will double efforts to enlarge investment in key projects,... https://www.scmp.com/economy/china-economy/article/3353992/chinas-old-motown-shanghai-bets-robotaxis-better-batteries-gdp-bump?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3353992/chinas-old-motown-shanghai-bets-robotaxis-better-batteries-gdp-bump?utm_source=rss_feed Mon, 18 May 2026 23:30:05 +0000 Frank Tang,Sylvia Ma Frank Tang,Sylvia Ma Mainland Chinese investors shed their holdings of US Treasury bills in March, joining many overseas institutions and central banks amid uncertainties over the US-Israel war on Iran. Such reductions in Treasury holdings reflected mounting doubts in global markets, analysts said, as the escalating war in Iran fuelled concerns over inflation, energy prices and fiscal pressures, driving Treasury yields higher and overshadowing the likelihood of interest rate cuts from the US Federal Reserve. In... https://www.scmp.com/economy/china-economy/article/3354028/china-joins-global-sell-us-treasuries-march-iran-war-prompts-panic?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3354028/china-joins-global-sell-us-treasuries-march-iran-war-prompts-panic?utm_source=rss_feed Mon, 18 May 2026 23:19:39 +0000 Frank Chen Frank Chen China is stepping up economic engagement with Russia by hosting the 10th edition of a major bilateral expo ahead of Russian President Vladimir Putin’s expected trip to Beijing this week – just days after his American counterpart, Donald Trump, visited there last week. The back-to-back visits to the Chinese capital by two of the world’s most influential leaders highlight an uptick in diplomatic activity as Beijing seeks to stabilise relations with Washington while deepening coordination with... https://www.scmp.com/economy/global-economy/article/3353980/china-and-russia-hold-trade-expo-putin-and-trump-visits-draw-global-attention?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353980/china-and-russia-hold-trade-expo-putin-and-trump-visits-draw-global-attention?utm_source=rss_feed Mon, 18 May 2026 12:30:08 +0000 Nicholas Spiro Nicholas Spiro Last year, investment in Japanese multifamily properties reached US$6.3 billion. While this accounted for 16 per cent of commercial real estate transaction volumes in Japan, it constituted almost half of the investment in institutional-grade rental housing in the whole of the Asia-Pacific. As the largest developed economy in the region, Japan has long dominated the investible rental housing market. According to LaSalle, “Japan’s multifamily sector is similarly mature to its US counterpart or UK... https://www.scmp.com/opinion/asia-opinion/article/3353926/why-asias-rental-housing-markets-outside-japan-are-luring-investors?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3353926/why-asias-rental-housing-markets-outside-japan-are-luring-investors?utm_source=rss_feed Mon, 18 May 2026 08:30:05 +0000 Frank Chen Frank Chen Japanese airlines’ lucrative European routes could become a victim of simmering tensions between China and Japan because access to airspace is a potential lever for Beijing, aviation professionals have warned. However, they said outright closure of Chinese airspace remained unlikely because it would snarl regional air traffic and embroil Chinese carriers. Aviation observers in China have recently discussed the likelihood of Beijing restricting or forbidding Japanese carriers from overflying the... https://www.scmp.com/economy/china-economy/article/3353718/could-china-limit-japanese-airlines-access-its-airspace-ties-sour?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3353718/could-china-limit-japanese-airlines-access-its-airspace-ties-sour?utm_source=rss_feed Mon, 18 May 2026 01:00:11 +0000 Yuanyue Dang Yuanyue Dang China has agreed to buy at least US$17 billion in US agricultural products annually through 2028, the White House said on Sunday. The commitment resulted from the summit between US President Donald Trump and Chinese President Xi Jinping last week and will be in addition to soybean purchase commitments that were made in October 2025, according to a fact sheet released by the White House. Trump concluded his highly-anticipated state visit to China on Friday, during which he discussed topics... https://www.scmp.com/news/china/diplomacy/article/3353903/china-will-buy-least-us17-billion-us-farm-goods-annually-white-house-says?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3353903/china-will-buy-least-us17-billion-us-farm-goods-annually-white-house-says?utm_source=rss_feed Sun, 17 May 2026 19:50:48 +0000 Xiaofei Xu,Ji Siqi,Xinyi Wu Xiaofei Xu,Ji Siqi,Xinyi Wu China and the United States have agreed to establish trade and investment councils, committing in principle to match each other’s tariff cuts on a reciprocal basis. “The two sides will use the Trade Council as a forum to discuss issues such as tariff reductions on specific products,” China’s Ministry of Commerce said in a statement on Saturday, without providing further details. The world’s two largest economies also made progress on agricultural trade and aircraft, the statement added. The two... https://www.scmp.com/economy/global-economy/article/3353840/china-and-us-agree-establish-trade-and-investment-councils-after-xi-trump-summit?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353840/china-and-us-agree-establish-trade-and-investment-councils-after-xi-trump-summit?utm_source=rss_feed Sat, 16 May 2026 15:05:04 +0000 Mandy Zuo Mandy Zuo China’s purchase of “double-digit billions” in American agricultural products touted by US officials following President Donald Trump’s state visit to Beijing appears to be a marginal addition after factoring in previous commitments, analysts said, adding that new orders could reduce the country’s reliance on Brazil for soybeans and other items. US Trade Representative Jamieson Greer said on ‌Friday that he expects to see China buy a 10-figure sum in agricultural products annually over the next... https://www.scmp.com/economy/global-economy/article/3353803/soybean-counters-scope-china-us-farm-deal-depends-math-analysts-say?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353803/soybean-counters-scope-china-us-farm-deal-depends-math-analysts-say?utm_source=rss_feed Sat, 16 May 2026 13:00:06 +0000 Anthony Rowley Anthony Rowley As economist Paul Sheard noted in his book The Power of Money, money is created not only by the fiat of governments or central banks but also by commercial banks. Relatively few people are aware of this fact, but fewer still realise that stock markets also can create “money” in the form of purchasing power. Thus, any collapse in stock prices of the kind which appears increasingly imminent now represents both the destruction of “paper wealth” and of real wealth that supports economic activity.... https://www.scmp.com/opinion/world-opinion/article/3353549/global-stock-markets-are-bubbling-along-unjustified-optimism?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3353549/global-stock-markets-are-bubbling-along-unjustified-optimism?utm_source=rss_feed Sat, 16 May 2026 08:30:04 +0000 Mia Nurmamat,Ralph Jennings Mia Nurmamat,Ralph Jennings US President Donald Trump’s landmark visit to China comes as the US-Iran war disrupts global energy supplies, fuels economic uncertainty and adds fresh strain to Washington-Beijing ties. In the latest instalment of a series examining how rivalry, interdependence and geopolitical crises are reshaping the relationship between the two powers, we explore the massive upswing in capital expenditures across Asia that is driving a broad shift in economic power. When US President Donald Trump made his... https://www.scmp.com/economy/article/3353399/trump-and-his-ceos-want-chinas-business-has-asia-moved?utm_source=rss_feed https://www.scmp.com/economy/article/3353399/trump-and-his-ceos-want-chinas-business-has-asia-moved?utm_source=rss_feed Fri, 15 May 2026 22:00:07 +0000 Daniel Ren Daniel Ren Peugeot and Jeep, owned by French-Italian automotive group Stellantis, have committed to fresh investments to build electric cars with its partner Dongfeng Motor, as more international marques join the fight against Chinese rivals in the world’s largest car market. Stellantis announced on Friday that four electric vehicles (EVs) under the two storied auto brands would roll off the production lines in 2027 as the European carmaker leverages Chinese technologies to assemble best-class cars for the... https://www.scmp.com/business/china-business/article/3353767/peugeot-jeep-take-chinese-rivals-new-models-using-local-ev-technologies?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3353767/peugeot-jeep-take-chinese-rivals-new-models-using-local-ev-technologies?utm_source=rss_feed Fri, 15 May 2026 14:20:02 +0000 Frank Chen,Xiaofei Xu Frank Chen,Xiaofei Xu US President Donald Trump said China has agreed to purchase at least 200 commercial aircraft from Boeing, and up to 750 if certain conditions are met – a commitment which would end a nearly decade-long order drought – following a state visit to Beijing, where Trump said a purchase of up to 450 aircraft engines from General Electric was also agreed upon. “We made a lot of great trade deals, including over 200 planes for Boeing, with a promise of 750 planes, which would be by far the largest order... https://www.scmp.com/economy/global-economy/article/3353749/trump-touting-deal-says-china-buy-200-boeing-jets-promise-more?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353749/trump-touting-deal-says-china-buy-200-boeing-jets-promise-more?utm_source=rss_feed Fri, 15 May 2026 12:24:59 +0000 Sylvia Ma Sylvia Ma Stephen Miran’s departure from the US Federal Reserve Board of Governors will smooth the leadership transition to incoming chair Kevin Warsh, but his exit is unlikely to alter the central bank’s policy trajectory, analysts said. The move is also sparking speculation about what comes next for Miran – a former top economic adviser to US President Donald Trump – with market watchers debating whether he will return to the White House or re-enter the private sector. Miran submitted his resignation as... https://www.scmp.com/economy/global-economy/article/3353705/stephen-miran-trumps-economic-guru-leaving-fed-what-happens-now?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353705/stephen-miran-trumps-economic-guru-leaving-fed-what-happens-now?utm_source=rss_feed Fri, 15 May 2026 12:00:05 +0000 Daniel Ren Daniel Ren Chinese electric vehicle (EV) makers, from BYD to Leapmotor, are voraciously seeking out manufacturing assets in Europe as the global energy crisis creates surging demand for battery-powered vehicles. Their pursuit of idled European assembly facilities owned by big names like Stellantis and Volkswagen is disrupting the pecking order in the global automotive industry, as the Chinese carmakers’ design and manufacturing heft sees them morph into international players. “China’s EV assemblers are... https://www.scmp.com/business/china-business/article/3353722/chinese-ev-makers-hunt-idled-plants-europe-they-expand-global-influence?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3353722/chinese-ev-makers-hunt-idled-plants-europe-they-expand-global-influence?utm_source=rss_feed Fri, 15 May 2026 09:50:14 +0000 Ralph Jennings Ralph Jennings Australia’s trade minister will visit China in an effort to shore up fuel supplies that have run short this year because of bottlenecks in the Strait of Hormuz during the US–Israeli war in Iran. Australian Trade and Tourism Minister Don Farrell told a press conference that he would travel to China to meet Commerce Minister Wang Wentao after a stop in Japan on Monday. “Very much the topic of the day will be how do we continue to ensure reliable fuel supplies into this country,” Farrell said,... https://www.scmp.com/economy/global-economy/article/3353673/australian-trade-minister-visit-china-secure-fuel-during-iran-war-crunch?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353673/australian-trade-minister-visit-china-secure-fuel-during-iran-war-crunch?utm_source=rss_feed Fri, 15 May 2026 07:30:05 +0000 Ji Siqi,Zhang Shidong Ji Siqi,Zhang Shidong While US President Donald Trump concluded his three-day state visit to Beijing by hailing “fantastic trade deals”, an immediate lack of specifics left some investors wondering if the high-stakes meeting delivered more theatre than substance. China’s benchmark CSI 300 Index dropped 1.1 per cent on Friday for a second straight day of declines, with investors taking profits from a record-setting rally in tech stocks after Trump wrapped up his tour. For the week, the gauge slipped 0.3 per cent. The... https://www.scmp.com/economy/global-economy/article/3353655/trump-hails-fantastic-china-trade-deals-signalling-boeing-oil-sales?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353655/trump-hails-fantastic-china-trade-deals-signalling-boeing-oil-sales?utm_source=rss_feed Fri, 15 May 2026 04:51:59 +0000 Kandy Wong,Ji Siqi Kandy Wong,Ji Siqi US President Donald Trump’s landmark visit to China comes as the US-Iran war disrupts global energy supplies, fuels economic uncertainty and adds fresh strain to Washington-Beijing ties. In the latest instalment of a series examining how rivalry, interdependence and geopolitical crises are reshaping the relationship between the two powers, we explore the intensifying US-China legal arms race. For years, global businesses have been struggling to navigate rising trade tensions between the United... https://www.scmp.com/economy/china-economy/article/3353567/us-china-trade-war-entering-worrying-new-phase-legal-arms-race?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3353567/us-china-trade-war-entering-worrying-new-phase-legal-arms-race?utm_source=rss_feed Thu, 14 May 2026 22:00:18 +0000 Sylvia Ma Sylvia Ma Kevin Warsh’s confirmation as the next chair of the United States Federal Reserve has fuelled debate over whether potential policy compromises with the administration of US President Donald Trump could undermine American financial credibility and inadvertently strengthen Chinese assets. The Senate confirmed Warsh as the 17th chair of the Fed on Wednesday in a 54-45 vote, mostly along bipartisan lines. He succeeds Jerome Powell, whose term expires on Friday, following a sustained pressure... https://www.scmp.com/economy/global-economy/article/3353558/china-set-benefit-new-us-fed-chair-kevin-warshs-policy-vision?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353558/china-set-benefit-new-us-fed-chair-kevin-warshs-policy-vision?utm_source=rss_feed Thu, 14 May 2026 15:00:05 +0000 Nicholas Spiro Nicholas Spiro When US President Donald Trump last met President Xi Jinping in Busan, South Korea, on October 30 last year, the US Federal Reserve had just embarked on a monetary easing cycle. At the end of 2025, bond investors were betting that the Fed would continue reducing interest rates this year. Fast forward to today and the financial landscape is markedly different. While investors were still anticipating cuts in borrowing costs just before the war in Iran erupted at the end of February, they are now... https://www.scmp.com/opinion/world-opinion/article/3353499/trump-xi-summit-puts-us-vulnerabilities-display?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3353499/trump-xi-summit-puts-us-vulnerabilities-display?utm_source=rss_feed Thu, 14 May 2026 12:30:04 +0000 Xiaofei Xu,Frank Chen Xiaofei Xu,Frank Chen “Large Boeing orders” are expected as part of US President Donald Trump’s state visit to Beijing, Treasury Secretary Scott Bessent said on Thursday, adding that China and the US would discuss establishing a joint “board of trade” to manage commercial ties. When asked about the potential for deals in what have come to be known as the “three Bs” ­– Chinese purchases of beans, beef and Boeing aircraft ­– Bessent told CNBC: “I think we’re going to see the large Boeing orders.” The agreement, if... https://www.scmp.com/economy/global-economy/article/3353578/boeing-nears-large-china-orders-trump-and-xi-forge-new-trade-board-bessent?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353578/boeing-nears-large-china-orders-trump-and-xi-forge-new-trade-board-bessent?utm_source=rss_feed Thu, 14 May 2026 10:35:16 +0000 Xinyi Wu Xinyi Wu The business executives accompanying US President Donald Trump on his state visit to Beijing this week are the wealthiest such delegation to visit China – holding a combined personal net worth of over US$1 trillion – an indication of continued interest in the country’s lucrative market despite strained bilateral ties. With Nvidia CEO Jensen Huang’s last-minute addition to the delegation, 17 executives from the technology, finance, aerospace and semiconductor sectors have joined Trump, who landed... https://www.scmp.com/economy/china-economy/article/3353490/trumps-trillion-dollar-business-delegation-looking-make-deals-china?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3353490/trumps-trillion-dollar-business-delegation-looking-make-deals-china?utm_source=rss_feed Thu, 14 May 2026 01:57:44 +0000 Alice Li Alice Li Some European companies operating in China are shifting more production to the country as part of broader supply chain adjustments in response to the US-Israeli war on Iran, according to a new survey by the EU Chamber of Commerce in China. The flash survey of European companies found that more than a quarter of firms had adjusted their supply chain strategies in China following the Middle East conflict, as higher energy and logistics costs weigh on operations. Six in 10 chemicals and petroleum... https://www.scmp.com/economy/global-economy/article/3353423/european-firms-china-rethink-supply-chains-iran-war-drives-costs-survey-finds?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353423/european-firms-china-rethink-supply-chains-iran-war-drives-costs-survey-finds?utm_source=rss_feed Wed, 13 May 2026 10:30:06 +0000 Xinyi Wu,Yulu Ao Xinyi Wu,Yulu Ao Senior officials from China and the United States concluded their latest round of trade talks in Seoul after less than four hours on Wednesday, the briefest session since the two countries began holding talks last year. The seventh round of negotiations – led by Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent – wrapped up just hours ahead of US President Donald Trump’s scheduled arrival in Beijing. The officials ended the session without speaking to the media, a departure... https://www.scmp.com/economy/global-economy/article/3353424/leaving-so-soon-us-china-hold-briefest-trade-talks-yet-leaders-summit?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353424/leaving-so-soon-us-china-hold-briefest-trade-talks-yet-leaders-summit?utm_source=rss_feed Wed, 13 May 2026 09:09:29 +0000 Jeffrey D. Sachs Jeffrey D. Sachs The G7 economists’ memo from March and the IMF’s April report on global imbalances arrived at the same prescription: China’s current account surplus is excessive and should be cut by boosting consumption. The diagnosis is wrong. The world economy, especially emerging markets and developing economies, benefits from China’s high saving. A current account surplus is the excess of national saving over domestic investment. The saving is not lost; it is exported abroad in the form of net capital... https://www.scmp.com/opinion/china-opinion/article/3353281/why-world-needs-china-save-more-not-less?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3353281/why-world-needs-china-save-more-not-less?utm_source=rss_feed Wed, 13 May 2026 08:30:08 +0000 Mia Nurmamat Mia Nurmamat As trade wars and deadly conflicts expose Asia’s vulnerability to geopolitical shocks, Chinese policymakers and advisers are warning of an “urgent need” for the world’s biggest trading bloc to reshape regional energy and manufacturing supply chains. Members of the Beijing-backed Asia-Pacific framework must reduce their reliance on vulnerable shipping routes and use the certainty of collaboration to offset growing geopolitical uncertainty, the experts urged at a forum in China’s southern island... https://www.scmp.com/economy/global-economy/article/3353401/reshaping-rcep-china-advisers-urge-trade-overhaul-shield-bloc-global-shocks?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3353401/reshaping-rcep-china-advisers-urge-trade-overhaul-shield-bloc-global-shocks?utm_source=rss_feed Wed, 13 May 2026 07:11:11 +0000 Xiaofei Xu Xiaofei Xu Chinese and US trade delegations meeting in South Korea today are expected to focus on locking in deliverables for this week’s summit in Beijing rather than engaging in substantive negotiations, analysts said, as both sides race through talks hours before US President Donald Trump’s planned arrival in China. The two teams, led by Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent, will meet in Seoul for one day, a departure from previous rounds that stretched over two days across... https://www.scmp.com/economy/china-economy/article/3353377/china-and-us-teams-race-find-easy-summit-deliverables-meeting-seoul?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3353377/china-and-us-teams-race-find-easy-summit-deliverables-meeting-seoul?utm_source=rss_feed Wed, 13 May 2026 04:59:47 +0000