German industrial orders rose by more than forecast in June, official data showed on Tuesday, providing a glimmer of hope for Europe’s largest economy, where recession is back on the cards following a contraction in the second quarter.

 

 

Industrial orders increased by 3.9% in June on the previous month on a seasonally and calendar adjusted basis, the federal statistics office reported.

 

Analysts polled by Reuters had forecast a rise of 0.5%.

 

“The increase in orders in June exceeded all expectations, even without major orders,” LBBW senior economist Jens-Oliver Niklasch said.”But in the current dark grey mosaic of economic figures, this is just a single light green tile. More needs to come together to give the industry any real confidence,” he added.

 

Germany was the worst performing major economy last year.

 

In the second quarter, its gross domestic product shrank by 0.1%, showing the country was failing to pick up steam after skirting a recession at the beginning of the year.

 

 

 

 

Source: U.S.News

China’s foreign trade volume reached a new high in the first half of this year, showing strong resilience and a steady upward momentum despite the challenging external environment.

 

China’s strong manufacturing capabilities, along with its burgeoning consumer market, technological advancements and favourable trade policies, have been providing its trade partners with vast opportunities and boosting the global economic recovery.

 

Observing a shift towards tech-intensive and green exports, as well as increased trade cooperation with emerging markets, overseas experts have expressed their confidence in the prospects of China’s foreign trade.

 

 

China’s trade volume expanded 6.1 per cent year on year to about US$2.97 trillion in the January-June period, with exports rising 6.9 per cent and imports climbing 5.2 per cent, according to the country’s General Administration of Customs (GAC).

 

It is the first time in the same period in history that the country’s foreign trade exceeded US$2.97 trillion, said the GAC.

 

 

The growth of the country’s foreign trade accelerated quarter by quarter, as it grew 7.4 per cent compared to a year earlier in the second quarter, 2.5 per centage points higher than the first quarter and 5.7 per centage points higher than the fourth quarter of last year.

 

 

China’s record foreign trade data are “a testament to the resilience and adaptability of its economy,” said Abdulaziz Alshaabani, a Saudi researcher at Al Riyadh Centre for Political and Strategic Studies.

 

 

“This achievement highlights the country’s effective handling of global supply chain challenges,” said Alshaabani, adding it also underscores China’s vital role in global trade and its ability to foster international economic partnerships.

 

 

China’s global trading network is also expanding. The country has now become the world’s largest trader of goods and a major trading partner for over 140 countries and regions, contributing an average of nearly 30 per cent to the world’s annual economic growth.

 

 

To date, China has signed free trade agreements with 29 countries and regions, according to its Ministry of Commerce.

 

 

The rapid growth of China’s foreign trade has not only accelerated its own economic development, but also made important contributions to the stability and recovery of the global economy.

 

 

“China’s rapid foreign trade growth has significantly boosted the global economy by enhancing supply chain efficiency, increasing the availability of diverse goods, and stimulating economic activity worldwide,” said Alshaabani.

 

 

Experts said China’s stable foreign trade growth is due to its strong manufacturing capabilities, burgeoning consumer market, technological advancements as well as free trade policies, which create vast opportunities such as increased market access and enhanced supply chain integration for multinationals.

 

 

China has so far established 22 pilot free trade zones and is constructing the Hainan Free Trade Port.

 

 

China has also created a number of international trade cooperation platforms like the China International Import Expo and the China International Fair for Trade in Services.

 

 

Policies include shortening the negative list for foreign investment and lifting market access restrictions in such service sectors as telecommunications and medical care are introduced to encourage more foreign investment.

 

 

“It has facilitated greater market access for international businesses and fostered economic interdependence, promoting global economic stability and growth,” Alshaabani said.

 

 

“Additionally, China’s robust trade activities help stabilise global supply chains, which is crucial for countries like Tanzania that are integrated into these networks,” said Benjamin Mgana, chief editor of foreign news at The Guardian newspaper in Tanzania.

 

 

Amidst trade protectionism and anti-globalisation sentiments, experts said China’s active promotion of the Belt and Road cooperation, and multilateral platforms such as the Regional Comprehensive Economic Partnership (RCEP) facilitates smoother global trade flows and stimulates economic growth across participating countries.

 

 

The approaches help reduce trade barriers and foster global economic integration, said Mgana, noting “the BRI, in particular, has already led to significant infrastructure projects in Tanzania, enhancing its trade capabilities and economic growth prospects.”

 

 

China’s trade with countries participating in the Belt and Road Initiative (BRI) has maintained vibrant growth, with the trade volume up 7.2 per cent to about US$1.38 trillion in the first six months of this year.

 

 

“Anti-globalisation is doomed to failure and will benefit no one,” said Franjo Maletic, professor at the University of the North in Croatia, adding China’s growing foreign trade benefits many countries around the world, especially those that are less developed.

 

 

While sustaining a steady growth, China’s foreign trade has undergone fresh shifts, bringing new opportunities and trade drivers.

 

 

“China’s exports are climbing the value chains, changing from exporting mainly labour-intensive goods such as apparel to high-tech products like electric vehicles (EVs),” Costantinos Bt. Costantinos, a professor of public policy at Addis Ababa University in Ethiopia, told Xinhua.

 

 

EVs, solar batteries and lithium-ion batteries, categorised as China’s tech-intensive and green “new three,” reported a combined export value of US$150 billion dollars in 2023, jumping 29.9 per cent year on year.

 

 

During the first half of this year, mechanical and electrical products continued to dominate China’s exports, accounting for nearly 60 per cent of the total.

 

 

China’s investments, particular in advanced technology products, will continue, said Sant Manukyan, an analyst with Is Yatirim, the investment banking arm of Isbank Group in Istanbul.

 

 

He noted that a significant technological advancement is ongoing in China’s foreign trade.

 

 

China’s push toward high-end manufacturing and new technologies especially in the green sector will have a positive spillover effect on its trading partners, said Lee Heng Guie, executive director of the Socio-Economic Research Center of the Associated Chinese Chambers of Commerce and Industry of Malaysia.

 

 

“The Ethiopian government has disclosed its plan to import 439,000 EVs in 10 years as part of an ongoing transition to electric mobility,” Costantinos said, noting China can play a vital role in helping not only Ethiopia, but also the world to achieve a green transition and sustainable development goals.

 

 

Experts also observed that China’s external demand structure is shifting from developed markets toward emerging markets.

 

 

While the demand from developed countries will likely decline, emerging economies including the Association of Southeast Asian Nations (Asean), Latin America and BRICS nations will be able to fill the gap, Yu Xiangrong, chief economist at Citigroup China said, noting that the country’s export growth is expected to remain steady.

 

 

“China is now doing a lot of trade with the Global South in particular,” said Horst Loechel, professor of economics at the Frankfurt School of Finance and Management, adding the growth in trade with these countries is important for the entire global economy.

 

“The development space for China’s foreign trade is likely to expand with continued diversification into emerging markets and innovations in trade practices,” Alshaabani said.

 

 

“China is expected to play a pivotal role in global economic development by driving innovation, enhancing international trade through initiatives like the BRI and RCEP, and contributing to global supply chains,” the Saudi researcher said. – Xinhua/ANN

 

 

Source: The Star

 China and Europe held several rounds of technical talks over tariffs on Chinese electric cars that the European Commission is set to confirm on Thursday, China’s commerce ministry said at a regular news conference.

 

Indonesia will impose safeguard duties of 100% to 200% on imports ranging from footwear to ceramics, reviving a plan to protect domestic industries, the trade minister said.

 

 

The planned import duties average more than 100%, Trade Minister Zulkifli Hasan told reporters on Friday. “If we are flooded with (imported goods), our micro, small and medium enterprises could collapse.”

 

 

Southeast Asia’s biggest economy issued a regulation late last year to tighten monitoring for more than 3,000 imported goods, from food ingredients to electronics to chemicals.

 

 

 

 

 

 

 

 

 

A wide swath of pro-trade American business groups has asked the Biden administration for another month to comment on plans to impose steeper tariffs on Chinese imports of electric vehicles, batteries, solar products and other goods, effectively delaying the Aug. 1 start date for many of the duties.

 

The group of 173 trade associations organized under the “American For Free Trade” umbrella said in a letter to the U.S. Trade Representative’s Office seen by Reuters on Friday that a 30-day extension in a public comment period until July 28 was “in the public interest”

 

The group, representing manufacturers, retailers, technology firms, agribusiness groups, energy companies and transport firms, also requested that USTR hold a public hearing on the matter, as it did in 2017 and 2018 for prior tariffs.

 

 

President Joe Biden last month announced the tariff hikes to protect U.S. manufacturers in strategic sectors from Chinese excess industrial capacity that is flooding global markets with exports. USTR subsequently announced a short, 30-day public comment period, with a quadrupling of duties on Chinese EVs to over 100% and a doubling of semiconductor duties to 50% scheduled to scheduled to start on Aug.

 

 

“We are actively surveying our collective membership to gather feedback on the projected impacts of the proposed (tariff) modifications and document the in a manner that is most helpful to USTR,” the groups said in the letter, dated July 6 and filed to USTR’s comment portal.

 

 

“However, our members have indicated that they require additional time to gather and assess such information given” the breadth of the breadth of the 387 product categories slated for higher duties and the submission format.

 

 

A spokesperson for USTR could not immediately be reached for comment on the groups request.

 

 

News of the request comes as another policy group led by the United Steelworkers union and domestic manufacturing companies called for even stronger trade barriers to Chinese imports. The Alliance for American Manufacturing said the U.S. should reinstate a long-expired legal tool to halt Chinese import surges enacted as China joined the World Trade Organization in 2001.

 

 

Among the groups signing the letter were the Semiconductor Industry Association, the Information Technology Industry Council, the American Chemistry Council, the Beer institute, the National Retail Federation, the Halloween and Costume Association and the American Trucking Association.

 

 

The signatories included auto and truck parts associations, but not trade groups representing auto and EV manufacturers.

 

 

 

 

Source: U.S.News

Volvo cars has started to shift production of Chinese-made electric vehicles to Belgium in the expectation that the European Union will drive ahead with a crackdown on Beijing-subsidised imports, the Times reported on Saturday.

 

 

Volvo, which is majority-owned by China’s Geely, was considering halting sales of Chinese-built EVs bound for Europe if tariffs were introduced, the newspaper said, citing company insiders.