https://www.scmp.com/rss/522759/feed The latest news and top stories on Alicia Garcia Herrero. A Spanish economist, she serves as Chief Economist for Asia Pacific at Natixis and is a Senior Fellow at Bruegel. Her background includes roles at the International Monetary Fund, European Central Bank and Bank of Spain. She is also an Adjunct Professor at Hong Kong University of Science and Technology and advises the Spanish Government on economic affairs. Known for her expertise in financial and monetary policy, particularly in emerging... en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Xiaofei Xu Xiaofei Xu Almost 80 per cent of the Chinese companies operating in the European Union plan to expand their investment there, even though most complain about policy uncertainty, according to a report published on Tuesday by the Chinese Chamber of Commerce to the EU (CCCEU) and the China Economic Information Service. The result stands in sharp contrast to similar reports published by the European Chamber of Commerce in China (EUCCC) – despite companies from both sides complaining about obstacles such as... https://www.scmp.com/economy/china-economy/article/3347861/amid-struggles-home-80-chinese-companies-eu-plan-more-investment?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3347861/amid-struggles-home-80-chinese-companies-eu-plan-more-investment?utm_source=rss_feed Wed, 25 Mar 2026 09:02:48 +0000 Sylvia Ma Sylvia Ma As the Iran war fuels global fears of stagflation, a debate is intensifying over whether the crisis poses an immediate risk to China’s sources of external demand or a strategic opening for its exporters. Mirroring the supply chain upheavals of the pandemic era, the crisis has prompted new questions about whether China will be able to leverage its industrial base and supply-side resilience if a prolonged conflict further fractures global supply chains. “China’s economy looks strong on the surface... https://www.scmp.com/economy/china-economy/article/3347606/iran-conflict-prompts-questions-about-chinas-export-power-amid-fractured-supply-chains?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3347606/iran-conflict-prompts-questions-about-chinas-export-power-amid-fractured-supply-chains?utm_source=rss_feed Mon, 23 Mar 2026 13:00:16 +0000 Frank Chen Frank Chen The United States’ rapidly mounting sovereign debt pile – which reached an unprecedented US$39 trillion on Wednesday – is becoming “alarmingly unsustainable” and a potential threat to the global economy, with spending likely to spiral even further amid the Iran war, analysts said. It remains unclear whether US President Donald Trump has the political will to rein in borrowing, despite promising to eliminate the national debt while campaigning for office in 2016, and other countries including... https://www.scmp.com/economy/global-economy/article/3347192/us-federal-debt-becoming-alarmingly-unsustainable-iran-war-fuels-spending-analysts?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3347192/us-federal-debt-becoming-alarmingly-unsustainable-iran-war-fuels-spending-analysts?utm_source=rss_feed Fri, 20 Mar 2026 02:00:10 +0000 Finbarr Bermingham Finbarr Bermingham The European Union has been urged to weaponise its giant market to draw concessions from China, whose economic fragility is making it increasingly reliant on rich export markets. A new report from the European Union Institute for Security Studies (EUISS), the EU’s official think tank, said “China’s weakness creates opportunities” for the bloc to use its chokepoints and leverage to bring Beijing to the negotiating table in a credible way. With the United States rapidly narrowing for Chinese... https://www.scmp.com/news/china/diplomacy/article/3345862/weaponise-eu-market-against-china-or-face-manufacturing-collapse-official-think-tank?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3345862/weaponise-eu-market-against-china-or-face-manufacturing-collapse-official-think-tank?utm_source=rss_feed Sun, 08 Mar 2026 20:30:08 +0000 Kandy Wong Kandy Wong China will accelerate investment in alternative nickel supply sources and strengthen its role across the metal’s wider supply chain, analysts said, after the United States finalised a deal with Indonesia on Thursday that will give America unrestricted access to the country’s industrial commodities. While the US Supreme Court’s tariff ruling last week could add some uncertainty to US-Indonesia trade, the agreement has the potential to reshape the global supply chain for nickel – a metal used to... https://www.scmp.com/economy/china-economy/article/3344337/us-indonesia-deal-threatens-chinas-entrenched-position-nickel-market-analysts?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344337/us-indonesia-deal-threatens-chinas-entrenched-position-nickel-market-analysts?utm_source=rss_feed Tue, 24 Feb 2026 04:00:09 +0000 Finbarr Bermingham Finbarr Bermingham A 16th-century Flemish castle is the setting on Thursday as European leaders try to resolve a set of economic tensions haunting Europe that are almost as old: the pull between free trade and protection, integration and sovereignty. On the agenda are prickly items such as how to kick-start the EU economy, whether to issue joint debt and how far to go with “buy Europe” provisions aimed at unpicking reliance on China and the United States. Seven years after European Commission President Ursula von... https://www.scmp.com/news/china/diplomacy/article/3343263/free-trade-or-fortress-europe-battle-soul-eu-economy?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3343263/free-trade-or-fortress-europe-battle-soul-eu-economy?utm_source=rss_feed Thu, 12 Feb 2026 08:00:08 +0000 Sylvia Ma Sylvia Ma For decades, the US dollar has served as the currency of global reserve, the de facto anchor for the vast majority of international exchanges. Consequently, United States government debt – most commonly in the form of Treasury assets such as bonds, notes and bills – has long been regarded as a safe haven by investors, prized for its unmatched liquidity and deep market penetration. That faith has remained strong in the past, even amid global financial crises. But the events of recent weeks... https://www.scmp.com/economy/global-economy/article/3341391/age-trump-are-safe-haven-us-assets-not-so-safe-any-more?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3341391/age-trump-are-safe-haven-us-assets-not-so-safe-any-more?utm_source=rss_feed Tue, 27 Jan 2026 22:00:13 +0000 Xiaofei Xu Xiaofei Xu As political and business leaders gather in the Swiss town of Davos for this year’s World Economic Forum, scheduled to begin on Monday, analysts expect China to continue positioning itself as a reliable trade partner and supporter of multilateralism – stances drawing an implicit contrast with the United States under President Donald Trump. This year’s meeting, themed “A Spirit of Dialogue”, will take place amid heightened global tensions in the wake of several controversial actions by Trump’s... https://www.scmp.com/economy/global-economy/article/3340298/china-readies-davos-sales-pitch-us-grants-beijing-window-opportunity?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3340298/china-readies-davos-sales-pitch-us-grants-beijing-window-opportunity?utm_source=rss_feed Mon, 19 Jan 2026 04:00:12 +0000 Kandy Wong Kandy Wong Washington’s abduction of Venezuelan leader Nicolas Maduro last week has been characterised by many – including US President Donald Trump – as an attempt to gain control over the South American nation’s oil industry. But analysts said the crisis was also about Washington’s need to secure access to critical minerals – and that other resource-rich nations should be on guard. In addition to its vast oil reserves, Venezuela has significant deposits of an array of precious metals and other valuable... https://www.scmp.com/economy/china-economy/article/3338894/behind-venezuela-crisis-us-china-tussle-over-critical-minerals?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3338894/behind-venezuela-crisis-us-china-tussle-over-critical-minerals?utm_source=rss_feed Tue, 06 Jan 2026 08:00:29 +0000 Kandy Wong Kandy Wong China’s move to restrict silver exports is set to keep the metal in the spotlight, with analysts warning of a supply crunch following weeks of volatile price swings. Effective Thursday, the Ministry of Commerce will implement a two-year special government licence for exports of silver, along with tungsten and antimony. While Beijing says the measure is aimed at protecting resources and the environment, market watchers see it as a signal that supply to overseas markets will be further... https://www.scmp.com/economy/global-economy/article/3338301/chinas-january-1-silver-curbs-deepen-global-crunch-analysts-warn-amid-volatility?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3338301/chinas-january-1-silver-curbs-deepen-global-crunch-analysts-warn-amid-volatility?utm_source=rss_feed Wed, 31 Dec 2025 15:00:08 +0000 Sylvia Ma,Kandy Wong Sylvia Ma,Kandy Wong Recent data on China’s external accounts presents a conundrum: while the country’s trade surplus has broken records, surpassing the US$1 trillion benchmark in the first 11 months of the year, growth in its official foreign exchange reserves has lagged. This seeming paradox prompts a question – where did the money go? Analysts said the gap reflects how much of the surplus has flowed back overseas through asset investment, largely made by private-sector players, leaving China’s external accounts... https://www.scmp.com/economy/china-economy/article/3338034/china-has-logged-us1-trillion-trade-surplus-where-all-money-going?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3338034/china-has-logged-us1-trillion-trade-surplus-where-all-money-going?utm_source=rss_feed Mon, 29 Dec 2025 13:00:10 +0000 Finbarr Bermingham Finbarr Bermingham With the end of the year approaching, the European Commission is rapidly ramping up its de-risking efforts through a flurry of broadsides against Chinese firms – even as the bloc’s most powerful member states appear to be moving in different directions on China. Foreign subsidy regulation probes were launched against online retailer Temu and Nuctech, a maker of airport scanning equipment, on Wednesday and Thursday respectively. E-commerce giant Temu saw its Dublin headquarters raided by... https://www.scmp.com/news/china/article/3336127/brussels-ramps-china-de-risking-while-france-and-germany-pull-further-apart?utm_source=rss_feed https://www.scmp.com/news/china/article/3336127/brussels-ramps-china-de-risking-while-france-and-germany-pull-further-apart?utm_source=rss_feed Thu, 11 Dec 2025 17:56:21 +0000 Ji Siqi,Sylvia Ma Ji Siqi,Sylvia Ma More than six decades after British historian AJP Taylor termed war the “mother of invention”, economies around the world appear to be ramping up their military spending, at least in part, to reinvigorate industrial production. Taylor was referring to the genesis of the tank, the aeroplane and poison gas in World War I, and that of radar, the jet engine and the atomic bomb in World War II. More modern examples, such as satellite-based navigation systems and the internet, were the products of the... https://www.scmp.com/economy/china-economy/article/3335612/us-eu-and-japan-boost-defence-spending-stimulus-their-true-intention?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3335612/us-eu-and-japan-boost-defence-spending-stimulus-their-true-intention?utm_source=rss_feed Mon, 08 Dec 2025 22:00:16 +0000 Khushboo Razdan Khushboo Razdan The first test for a much-celebrated US–China trade truce is looming. US Treasury Secretary Scott Bessent hopes to finalise a rare earth deal by next week’s Thanksgiving holiday, but experts say a breakthrough is unlikely as the two sides maintain sharply different narratives of what was discussed and agreed on key issues. From rare earths to soybeans, three weeks after Chinese President Xi Jinping and his American counterpart, Donald Trump, were photographed smiling and shaking hands after a... https://www.scmp.com/news/china/article/3333764/us-china-fragile-truce-divergent-accounts-and-thanksgiving-test?utm_source=rss_feed https://www.scmp.com/news/china/article/3333764/us-china-fragile-truce-divergent-accounts-and-thanksgiving-test?utm_source=rss_feed Fri, 21 Nov 2025 19:52:07 +0000 Xiaofei Xu Xiaofei Xu The saga of Netherlands-based and Chinese-owned chipmaker Nexperia, caught up in broader geopolitical tensions between the United States and China, is rekindling a debate about foreign investment in Europe and is likely to lead to further scrutiny by EU countries on future Chinese investments in the bloc, according to analysts. After The Hague seized control of Nexperia from its Chinese owners on September 30, citing national security concerns and invoking a law that had been sitting idle since... https://www.scmp.com/economy/global-economy/article/3331611/nexperia-fallout-dutch-chinese-chip-debacle-reignites-eu-debate-over-foreign-investments?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3331611/nexperia-fallout-dutch-chinese-chip-debacle-reignites-eu-debate-over-foreign-investments?utm_source=rss_feed Wed, 05 Nov 2025 08:17:35 +0000 Ji Siqi Ji Siqi As Beijing continues advocating for deeper regional economic cooperation in East Asia amid ongoing tensions with Washington – including by working towards a free-trade agreement (FTA) with Japan and South Korea – analysts say that making substantial progress remains challenging, given the existing trade framework and conflicting interests. In a meeting with South Korean Minister of Trade, Industry and Energy Kim Jung-kwan on Saturday on the sidelines of the Asia-Pacific Economic Cooperation... https://www.scmp.com/economy/global-economy/article/3331365/beijing-pushes-china-japan-south-korea-trade-pact-amid-us-tensions-hurdles-remain?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3331365/beijing-pushes-china-japan-south-korea-trade-pact-amid-us-tensions-hurdles-remain?utm_source=rss_feed Tue, 04 Nov 2025 01:00:15 +0000 Ji Siqi,Sylvia Ma Ji Siqi,Sylvia Ma As more countries begin formulating contingency plans for their stocks of rare earth elements, analysts said China’s tightening control over its near-monopoly status in the supply and refining capacity of the minerals – an action taken as part of Beijing’s broader trade conflict with the US – could face challenges in enforcement. Last week, China announced a sweeping expansion of its export control regime as it relates to rare earth elements – raw materials that are crucial components in the... https://www.scmp.com/economy/global-economy/article/3329439/chinas-rare-earth-export-controls-have-gone-global-can-it-enforce-them?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3329439/chinas-rare-earth-export-controls-have-gone-global-can-it-enforce-them?utm_source=rss_feed Fri, 17 Oct 2025 12:00:13 +0000 Xiaofei Xu Xiaofei Xu As China drafts its 15th five-year plan – the next entry in a line of expansive blueprints that have set the tone for the country’s development over more than seven decades – we examine how these documents inform and reflect high-level policy priorities, what to expect in the coming iteration and how foreign investors are likely to be affected. For more stories in this ongoing series, click here. To view SCMP Plus Factsheets on the 15th five-year-plan and more premium content, click here. Sun... https://www.scmp.com/economy/china-economy/article/3328532/what-chinas-next-5-year-plan-means-foreign-investors-quantity-quality?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3328532/what-chinas-next-5-year-plan-means-foreign-investors-quantity-quality?utm_source=rss_feed Fri, 10 Oct 2025 22:00:19 +0000 Ji Siqi Ji Siqi With Sanae Takaichi poised to become Japan’s first female prime minister, economists warn her policies may have “mixed” results: expansionary measures that spur growth but exacerbate fiscal strain, and coalition partners who temper a more hawkish stance on China amid a push for higher military spending. The 64-year-old conservative was elected leader of Japan’s Liberal Democratic Party (LDP) on Saturday, paving the way for her to become the next prime minister as head of a coalition government –... https://www.scmp.com/economy/global-economy/article/3328021/mixed-bag-how-japans-pm-waiting-may-fuel-growth-defence-and-debt?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3328021/mixed-bag-how-japans-pm-waiting-may-fuel-growth-defence-and-debt?utm_source=rss_feed Mon, 06 Oct 2025 13:00:08 +0000 Mia Nurmamat,Sylvia Ma Mia Nurmamat,Sylvia Ma Just hours before US President Donald Trump signed an executive order to settle the tumult surrounding TikTok, Beijing launched a sudden salvo in its ongoing trade war with Washington. As Trump’s order brought the fate of the popular short-video app closer to a resolution, a number of American firms were being hit with trade curbs. It not only marked the latest example of bilateral tensions flaring up during Trump’s second presidential term, analysts say it also reflected a pattern in the... https://www.scmp.com/economy/global-economy/article/3327266/dare-fight-how-chinas-refined-art-deal-reflects-years-dealing-trump?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3327266/dare-fight-how-chinas-refined-art-deal-reflects-years-dealing-trump?utm_source=rss_feed Mon, 29 Sep 2025 13:00:13 +0000 Sylvia Ma Sylvia Ma As China continues to cut its US Treasury holdings – reaching a near 17-year low in July as concerns over assets backed by the US dollar mount – analysts said the country’s central bank could be pivoting to European assets and perennial safe haven gold as more reliable investments. Beijing’s stockpile dropped to US$730.7 billion in July, down US$25.7 billion from June, according to data released by the US Treasury Department on Thursday. July’s figure was the lowest reported since January 2009,... https://www.scmp.com/economy/global-economy/article/3326123/chinas-us-treasury-holdings-are-record-lows-where-investment-going?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3326123/chinas-us-treasury-holdings-are-record-lows-where-investment-going?utm_source=rss_feed Fri, 19 Sep 2025 07:10:06 +0000 Ralph Jennings,Kandy Wong Ralph Jennings,Kandy Wong Despite its vague wording, the new China-US framework deal on popular video-sharing app TikTok represents an important step in advancing bilateral talks and keeping ties warm ahead of any future meetings between the world’s two largest economies, according to analysts. And they added that Beijing could potentially try to leverage the TikTok deal by seeking tariff cuts or relief from hi-tech export controls. Officials from both powers confirmed after negotiations in Madrid, Spain, on Sunday and... https://www.scmp.com/economy/global-economy/article/3325752/peeling-us-china-tiktok-deal-analysts-see-layers-leverage-tariffs-and-soybeans?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3325752/peeling-us-china-tiktok-deal-analysts-see-layers-leverage-tariffs-and-soybeans?utm_source=rss_feed Tue, 16 Sep 2025 13:00:16 +0000 Finbarr Bermingham Finbarr Bermingham For almost a year, European Union officials have been dangling the carrot of joint work on China policy in front of US President Donald Trump in an effort to keep him engaged in supporting Ukraine. For months, their overtures were ignored. Now that the US leader has tuned in – but only on the condition of maximum tariffs – Europe finds itself in a bind. On Wednesday evening, ambassadors from the EU’s 27 member states were briefed by the bloc’s sanctions envoy, David O’Sullivan, on his trip to... https://www.scmp.com/news/us/article/3325250/eu-wins-trumps-focus-china-can-it-deliver-impossible-demand?utm_source=rss_feed https://www.scmp.com/news/us/article/3325250/eu-wins-trumps-focus-china-can-it-deliver-impossible-demand?utm_source=rss_feed Thu, 11 Sep 2025 16:10:13 +0000 Sylvia Ma Sylvia Ma China’s anti-corruption campaign in the financial sector may not immediately boost confidence given the prevailing uncertainties, an analyst has warned. However, it is believed that over time the drive could put the country on a cleaner governance path and help to attract overseas investors. Beijing’s intensified anti-corruption drive has seen high-profile figures like Yi Huiman, the former head of China’s securities watchdog, placed under investigation. He is being investigated by the Communist... https://www.scmp.com/news/china/politics/article/3324613/chinas-financial-anti-corruption-drive-will-boost-confidence-long-term-analyst?utm_source=rss_feed https://www.scmp.com/news/china/politics/article/3324613/chinas-financial-anti-corruption-drive-will-boost-confidence-long-term-analyst?utm_source=rss_feed Sat, 06 Sep 2025 14:00:09 +0000 Xiaofei Xu Xiaofei Xu US President Donald Trump has dragged China into his battle against European taxes and regulations targeting American technology giants, accusing Europe of singling out US firms and giving Chinese tech companies “a complete pass”. The claim was quickly rejected by the Chinese business community, with one executive dismissing Trump’s post as “political rhetoric” that does not “align with the reality”, while analysts said the attack was likely part of Trump’s plan to pressure Europe into easing... https://www.scmp.com/economy/china-economy/article/3323343/chinese-firms-slam-trumps-claim-europe-gives-them-complete-pass?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3323343/chinese-firms-slam-trumps-claim-europe-gives-them-complete-pass?utm_source=rss_feed Wed, 27 Aug 2025 11:00:19 +0000 Sylvia Ma Sylvia Ma US President Donald Trump’s nomination of his top economic adviser to the Federal Reserve Board could strengthen the White House’s influence over the central bank and deepen concerns over its independence, analysts said. Stephen Miran, chairman of the Trump administration’s Council of Economic Advisers and an architect of its tariff policy, will be nominated to temporarily fill a vacant seat on the Federal Reserve’s board of governors, the US president announced Thursday on social... https://www.scmp.com/economy/global-economy/article/3321241/why-trumps-federal-reserve-pick-raising-alarm-over-central-banks-independence?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3321241/why-trumps-federal-reserve-pick-raising-alarm-over-central-banks-independence?utm_source=rss_feed Fri, 08 Aug 2025 13:00:16 +0000 Zhao Ziwen,Dewey Sim Zhao Ziwen,Dewey Sim US plans to impose 100 per cent of tariffs on imported chips are a heavy blow to Southeast Asia’s chip industry and could push the region closer to China, according to observers. US President Donald Trump announced the duties on semiconductors and chips on Wednesday, saying that only companies that were “building in the United States” were exempt. It is unclear just how much of a US manufacturing presence companies would need to have to qualify for tariff exemptions or reductions, or whether the... https://www.scmp.com/news/china/diplomacy/article/3321133/will-trumps-chip-tariffs-tilt-balance-china-southeast-asia?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3321133/will-trumps-chip-tariffs-tilt-balance-china-southeast-asia?utm_source=rss_feed Fri, 08 Aug 2025 02:00:11 +0000 Ji Siqi,Luna Sun,Kandy Wong Ji Siqi,Luna Sun,Kandy Wong As a framework trade deal was struck between the United States and the European Union on the eve of a new round of trade talks between Beijing and Washington, analysts said China was in a position to stay calm and wait to see how the deal actually pans out, even if the US is likely to use it as a bargaining chip. But Beijing should still be aware of the potential alliance between its two major trading partners in the economic sphere, as the US and EU could transform shared sore points into a... https://www.scmp.com/economy/global-economy/article/3319866/where-does-china-stand-after-us-trade-deal-eu-seen-more-rhetoric-substance?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3319866/where-does-china-stand-after-us-trade-deal-eu-seen-more-rhetoric-substance?utm_source=rss_feed Mon, 28 Jul 2025 18:00:08 +0000 Finbarr Bermingham Finbarr Bermingham If a week is a long time in politics, after a bruising fortnight of wrestling with the world’s two superpowers, the European Union could be forgiven for thinking it has aged several decades. A bruising encounter over Russia with China’s top diplomat Wang Yi was followed by chaotic skirmishes on trade with the United States over the last week, as the EU scrambled to avoid being crushed between the duelling titans. The bad news for the bloc’s bureaucrats is that they may have an even trickier few... https://www.scmp.com/news/china/diplomacy/article/3318045/european-union-ropes-donald-trump-and-china-turn-screws?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3318045/european-union-ropes-donald-trump-and-china-turn-screws?utm_source=rss_feed Mon, 14 Jul 2025 04:00:08 +0000