https://www.scmp.com/rss/12/feed Global economy news, including budgets, stock markets and analysis. en https://assets-v2.i-scmp.com/production/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Xiaofei Xu Xiaofei Xu Beijing and Brussels remain “deadlocked” on trade in medical devices following discussions in Beijing this week, a source said, adding that “intensive consultations” were under way about Brussels’ plan to launch import safeguards against made-in-China plug-in hybrid electric vehicles (PHEVs). Vice-Minister of Commerce Ling Ji – China’s deputy international trade representative – held discussions with Ditte Juul Jorgensen, the European Commission’s director general for trade and economic... https://www.scmp.com/economy/china-economy/article/3368811/china-and-eu-deadlocked-medical-devices-still-talking-phev-curbs-source?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368811/china-and-eu-deadlocked-medical-devices-still-talking-phev-curbs-source?utm_source=rss_feed Fri, 25 Sep 2026 10:30:12 +0000 Huizhao Huang Huizhao Huang Chinese carmakers have gained ground in Europe’s shift to electric cars, emerging as the biggest winners in plug-in hybrids despite moves by Brussels to curb their expansion. As petrol prices climbed across the EU, hitting a record high of more than €2.30 a litre (US$9.91 a US gallon) in Germany this month, the move to battery power gathered pace. Battery-electric registrations jumped 62.7 per cent year on year in August and accounted for 21.7 per cent of new registrations in the first eight... https://www.scmp.com/economy/china-economy/article/3368814/chinese-marques-driving-seat-high-petrol-prices-accelerate-eu-shift-electric-cars?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368814/chinese-marques-driving-seat-high-petrol-prices-accelerate-eu-shift-electric-cars?utm_source=rss_feed Fri, 25 Sep 2026 09:37:49 +0000 Wang Huiyao Wang Huiyao The European Commission is pressing China for progress by next month to address the widening EU-China trade imbalance, and raising the possibility of new protectionist trade policy. The deadline raises a question: how should China and its trading partners address perceived economic imbalances while sharing the benefits of Chinese industrial competitiveness? China’s merchandise trade surplus approached US$1.2 trillion last year even as other exporting economies press for controls. “Overcapacity”... https://www.scmp.com/opinion/china-opinion/article/3368293/chinas-industrial-strengths-must-also-benefit-its-trading-partners?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3368293/chinas-industrial-strengths-must-also-benefit-its-trading-partners?utm_source=rss_feed Thu, 24 Sep 2026 21:30:12 +0000 Alice Li Alice Li China’s outbound direct investment reached a record high of US$214 billion last year, even as investment in the United States plunged to its lowest level in more than a decade amid growing geopolitical and regulatory uncertainty, latest official data showed. Outbound direct investment was up 11.1 per cent in 2025 compared to the previous year, making China the world’s second-largest source of global capital, behind only the US and ranking ahead of Japan, according to an annual report jointly... https://www.scmp.com/economy/global-economy/article/3368642/chinas-overseas-investment-hits-record-us214-billion-why-are-us-bound-flows-plunging?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368642/chinas-overseas-investment-hits-record-us214-billion-why-are-us-bound-flows-plunging?utm_source=rss_feed Thu, 24 Sep 2026 12:30:19 +0000 Sylvia Ma,Frank Chen Sylvia Ma,Frank Chen An extension of the US-China trade truce, agreed upon at an unscheduled meeting between the two countries’ top economic officials, underscores a willingness to contain trade tensions, according to analysts who deemed it a positive signal for this week’s presidential summit. While the rollover extends the truce by only two months, the analysts said it provided businesses with a measure of short-term certainty while raising the stakes for the next round of talks to determine whether the truce can... https://www.scmp.com/economy/global-economy/article/3368663/what-2-month-trade-truce-extension-between-china-and-us-reveals-rifts-persist?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368663/what-2-month-trade-truce-extension-between-china-and-us-reveals-rifts-persist?utm_source=rss_feed Thu, 24 Sep 2026 10:30:15 +0000 Ji Siqi,Teresa Elena Frontado,Carol Yang,Alyssa Chen Ji Siqi,Teresa Elena Frontado,Carol Yang,Alyssa Chen With China and the US agreeing to extend a tariff truce that was set to expire in November – and US President Donald Trump giving his Chinese counterpart, Xi Jinping, a personal welcome on the tarmac – analysts say the Chinese leader’s state visit has begun on a positive note. The extension will run for two months through January 10, a sign the world’s two largest economies are willing to negotiate broader agreements and build positive momentum despite an increasingly heightened rivalry spanning... https://www.scmp.com/economy/global-economy/article/3368583/deep-respect-analysts-weigh-trumps-red-carpet-welcome-xi?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368583/deep-respect-analysts-weigh-trumps-red-carpet-welcome-xi?utm_source=rss_feed Thu, 24 Sep 2026 02:30:20 +0000 Ralph Jennings Ralph Jennings Five years after China pledged to stop building or financing new coal-fired power plants overseas, the country’s state sector has made “significant progress” towards meeting that goal, though private projects are still being developed, according to a new report. Two-thirds of China’s overseas coal power projects planned five years ago have since been cancelled, a 61.5-gigawatt (GW) cut in capacity that has saved 6.4 billion tonnes of “lifetime” carbon dioxide emissions, the study by a pair of... https://www.scmp.com/economy/china-economy/article/3368556/china-has-scrapped-two-thirds-its-planned-coal-power-plants-abroad-report?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368556/china-has-scrapped-two-thirds-its-planned-coal-power-plants-abroad-report?utm_source=rss_feed Thu, 24 Sep 2026 01:00:09 +0000 Xinyi Wu Xinyi Wu Global debt climbed to a record high of more than US$365 trillion in the first half of the year, with China and the United States accounting for the bulk of the increase, according to the latest findings by the Institute of International Finance (IIF) that come amid mounting concerns over global fiscal sustainability. The figure reflects total debt across all four major borrowing sectors – government, household, financial and non-financial corporate – in more than 100 mature and emerging market... https://www.scmp.com/economy/global-economy/article/3368552/led-china-and-us-borrowing-world-now-owes-record-us365-trillion-debt-iif?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368552/led-china-and-us-borrowing-world-now-owes-record-us365-trillion-debt-iif?utm_source=rss_feed Wed, 23 Sep 2026 15:00:10 +0000 Sherry Wang Sherry Wang The Chinese government needs to increase its spending on social safety nets, including pensions and rural healthcare, and further relax urban household registration restrictions to give households greater confidence to spend rather than save, according to the International Monetary Fund’s (IMF) Asia-Pacific chief. In an interview with the South China Morning Post, Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, said the export- and investment-led model that powered China’s... https://www.scmp.com/economy/china-economy/article/3368548/increase-chinas-consumption-boost-nations-social-safety-net-imf-director-says?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368548/increase-chinas-consumption-boost-nations-social-safety-net-imf-director-says?utm_source=rss_feed Wed, 23 Sep 2026 14:15:30 +0000 Haining Gao Haining Gao – https://www.scmp.com/plus/economy/china-economy/article/3368505/chinas-us-dollar-holdings?utm_source=rss_feed https://www.scmp.com/plus/economy/china-economy/article/3368505/chinas-us-dollar-holdings?utm_source=rss_feed Wed, 23 Sep 2026 08:52:45 +0000 Alice Li Alice Li Two Chinese state-owned banks and Ant International have trialled cross-border digital yuan transfers worth hundreds of millions of yuan, marking the latest step in Beijing’s efforts to streamline settlements and promote wider international use of the digital yuan. The Shanghai branch of Industrial and Commercial Bank of China (ICBC) facilitated its first digital yuan transfer for Ant International to ICBC Asia, its Hong Kong subsidiary. The transaction from Shanghai to Hong Kong was completed... https://www.scmp.com/economy/global-economy/article/3368476/chinese-banks-ant-international-push-instant-cross-border-digital-yuan-transfers?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368476/chinese-banks-ant-international-push-instant-cross-border-digital-yuan-transfers?utm_source=rss_feed Wed, 23 Sep 2026 06:11:18 +0000 Daniel Ren Daniel Ren Contemporary Amperex Technol­ogy Ltd (CATL) has cleared all regulatory hurdles for its mega factory in Hungary, a development that analysts expect will help the world’s largest producer of electric vehicle (EV) batteries extend its reach to international marques like BMW and Volkswagen. Production of battery cells at the €7.3 billion (US$8.35 billion) plant in Debrecen, the second-largest city in Hungary, began on Tuesday after it fulfilled all preconditions for a trial run, the company said. It... https://www.scmp.com/business/china-business/article/3368463/chinese-ev-battery-giant-catl-starts-trial-production-hungarian-factory?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3368463/chinese-ev-battery-giant-catl-starts-trial-production-hungarian-factory?utm_source=rss_feed Wed, 23 Sep 2026 06:00:04 +0000 Sylvia Ma Sylvia Ma As President Xi Jinping prepares to travel to the United States to meet his American counterpart Donald Trump, attention is turning to the group of business leaders who could join him. The South China Morning Post previously reported that executives from electric vehicle maker BYD, smart manufacturing giant Xiaomi and battery maker Contemporary Amperex Technology Limited were likely to accompany Xi on the trip – though Beijing has yet to officially confirm the delegation. What has raised... https://www.scmp.com/economy/global-economy/article/3368409/why-chinas-frontier-ai-pioneers-are-expected-miss-weeks-xi-trump-summit?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368409/why-chinas-frontier-ai-pioneers-are-expected-miss-weeks-xi-trump-summit?utm_source=rss_feed Tue, 22 Sep 2026 14:00:05 +0000 Xinyi Wu Xinyi Wu As American farmers begin harvesting soybeans across the Midwest this month, some are feeling a sense of relief absent a year ago, when China – which typically buys around half of all US soybean exports – halted imports amid an escalating trade war. This season is unfolding differently. Ahead of President Xi Jinping’s coming meeting with US President Donald Trump in Washington this week, China has rapidly scaled up purchases of American soybeans once again. “US farmers genuinely appreciate the... https://www.scmp.com/economy/china-economy/article/3368353/once-key-economic-weapon-us-china-soybean-trade-may-now-offer-rare-common-ground?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368353/once-key-economic-weapon-us-china-soybean-trade-may-now-offer-rare-common-ground?utm_source=rss_feed Tue, 22 Sep 2026 09:00:09 +0000 Sherry Wang Sherry Wang As Beijing and Brussels prepare for October talks on trade imbalances, an EU trade association has called for more concrete action, such as China shifting towards a more service-based economy, to address the country’s domestic supply-demand imbalances that have contributed to trade tensions. The European Union Chamber of Commerce in China (EUCCC), which has more than 1,600 member companies, said persistent supply-demand imbalances had fuelled neijuan or “involution” – a form of excessive... https://www.scmp.com/economy/global-economy/article/3368334/shift-china-towards-service-based-economy-could-help-trade-imbalance-eu-group?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368334/shift-china-towards-service-based-economy-could-help-trade-imbalance-eu-group?utm_source=rss_feed Tue, 22 Sep 2026 05:11:54 +0000 https://www.scmp.com/news/china/diplomacy/series/3368316/xi-trump-path-constructive-strategic-stability?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/series/3368316/xi-trump-path-constructive-strategic-stability?utm_source=rss_feed Tue, 22 Sep 2026 02:27:07 +0000 Sylvia Ma Sylvia Ma When the presidents of the United States and China meet in Washington, the world will be watching to see whether their two countries can make good on their agreement to work towards “constructive strategic stability”. In the fourth part of this series, Sylvia Ma looks at the economic and technological levers available to both in their protracted rivalry. For years, Huawei Technologies has served as a central battleground in the contest between the world’s two largest economies. As Washington... https://www.scmp.com/economy/global-economy/article/3368262/us-china-tech-war-has-evolved-last-xi-trump-summit-who-has-edge-now?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368262/us-china-tech-war-has-evolved-last-xi-trump-summit-who-has-edge-now?utm_source=rss_feed Mon, 21 Sep 2026 22:00:06 +0000 Nong Hong Nong Hong Chinese President Xi Jinping is expected to meet US President Donald Trump in Washington this week, after the May talks in Beijing and before the November Apec summit in Shenzhen. This sequence of diplomacy will test if the commitment to building a “constructive China-US relationship of strategic stability” translates into practical arrangements. The Washington meeting faces clear limits. Differences over trade, technology, industrial policy, Taiwan and regional security are deeply embedded in... https://www.scmp.com/opinion/china-opinion/article/3368013/success-trump-xi-summit-lies-what-happens-afterwards?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3368013/success-trump-xi-summit-lies-what-happens-afterwards?utm_source=rss_feed Mon, 21 Sep 2026 12:30:05 +0000 Sherry Wang Sherry Wang With President Xi Jinping expected to meet US President Donald Trump in Washington this week, attention is again turning to the tit-for-tat trade and technology restrictions between the two nations – a friction that continues to escalate despite occasional reprieves. Over the past year, tech firms and industrial manufacturers on both sides have been casualties of the ever-intensifying rivalry, even as some benefit from growing state support to cushion the blow. From lost sales and squeezed... https://www.scmp.com/economy/policy/article/3367533/rising-toll-us-china-trade-tech-curbs-focus-ahead-xi-trump-summit?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3367533/rising-toll-us-china-trade-tech-curbs-focus-ahead-xi-trump-summit?utm_source=rss_feed Mon, 21 Sep 2026 09:00:17 +0000 Mia Nurmamat Mia Nurmamat China sharply increased its imports of crude oil and liquefied natural gas (LNG) from Canada in August amid an escalating trade dispute between Ottawa and Washington. The country’s imports of Russian energy products also rose sharply last month, as geopolitical risks including war in Iran accelerated Beijing’s efforts to diversify its energy supplies. Customs data released on Sunday showed that the volume of China’s crude oil imports from Canada rose nearly 35 per cent year on year in August,... https://www.scmp.com/economy/global-economy/article/3368210/china-boosts-crude-oil-lng-imports-canada-ottawa-washington-relations-sour?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368210/china-boosts-crude-oil-lng-imports-canada-ottawa-washington-relations-sour?utm_source=rss_feed Mon, 21 Sep 2026 08:00:08 +0000 Frank Chen Frank Chen As final preparations are being made for President Xi Jinping’s trip to Washington this month, one export-oriented Chinese province has urged businesses to “grasp the window” of relative stability in China-US ties to boost shipments. The hope among regional officials for more trade lays bare the dependence some key Chinese localities still have on America despite diversification and decoupling. Major manufacturers in Zhejiang – which helped the coastal province grow its annual export value to... https://www.scmp.com/economy/china-economy/article/3367301/chinese-province-urges-firms-seize-day-xi-trump-meeting-provides-trade-stability?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3367301/chinese-province-urges-firms-seize-day-xi-trump-meeting-provides-trade-stability?utm_source=rss_feed Mon, 21 Sep 2026 00:00:10 +0000 Xiaofei Xu Xiaofei Xu Pascal Lamy served two consecutive terms as director general of the World Trade Organization from 2005 to 2013. Before that, he spent decades in various French government roles, contributing to the building of the European Union. He was chief of staff to European Commission president Jacques Delors from 1985 to 1994, and European trade commissioner from 1999 to 2004. Here, he discusses Europe’s trade tensions with China, the continent’s growth potential problem and the WTO’s need for stronger... https://www.scmp.com/economy/global-economy/article/3367981/former-wto-head-pascal-lamy-eus-china-choice-get-rebalance-or-go-protectionist?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367981/former-wto-head-pascal-lamy-eus-china-choice-get-rebalance-or-go-protectionist?utm_source=rss_feed Sun, 20 Sep 2026 22:00:11 +0000 Frank Chen Frank Chen When President Xi Jinping travels to Washington later this month, he is likely to hop over the Pacific on a Boeing 747 jumbo jet. He will also hold the fate of the American planemaker’s much-touted China deal in his hands. Beijing agreed to purchase 200 Boeing aircraft during US President Donald Trump’s visit to China in May. But the deal has yet to materialise – and the negotiations could depend on the outcome of Xi’s coming meeting with Trump in the Oval Office, according to industry... https://www.scmp.com/economy/china-economy/article/3368005/boeings-200-jet-china-deal-could-hinge-trump-xi-talks-industry-insiders?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368005/boeings-200-jet-china-deal-could-hinge-trump-xi-talks-industry-insiders?utm_source=rss_feed Sun, 20 Sep 2026 12:00:08 +0000 Ralph Jennings Ralph Jennings Chinese firms have shown “very strong interest” in investing in Oman – across the Strait of Hormuz from Iran – as they aim to tap the lucrative Middle East market while minimising risks, an Omani official said. Banks, asset managers and law firms from China were getting in touch every day to ask about setting up in the International Financial Centre Oman, a free-standing legal zone in the country, the centre’s associate director for business development, Al Hussain al-Qalhati, said. The... https://www.scmp.com/economy/china-economy/article/3368019/chinese-firms-keen-investing-omans-international-financial-centre-official?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368019/chinese-firms-keen-investing-omans-international-financial-centre-official?utm_source=rss_feed Sun, 20 Sep 2026 06:00:08 +0000 Mia Nurmamat Mia Nurmamat When I began planning a work trip to Astana this month, the first challenge was simply finding a flight. With no direct service from Hong Kong to the Kazakh capital, I could transfer in Guangzhou, Beijing, Urumqi or Seoul. I chose Guangzhou, which offered a direct flight lasting about seven and a half hours, but the limited schedule meant there was no flight on Saturday, forcing me to leave earlier than planned and spend five days in Astana. The journey offered an early glimpse of both the... https://www.scmp.com/economy/china-economy/article/3368016/reporters-notebook-kazakhstan-trip-highlights-promise-and-limits-central-asia-ties?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368016/reporters-notebook-kazakhstan-trip-highlights-promise-and-limits-central-asia-ties?utm_source=rss_feed Sat, 19 Sep 2026 09:00:06 +0000 Sherry Wang Sherry Wang China is showing early signs of stepping up imports of crude oil after months of subdued buying amid the US-Israel war on Iran, threatening to erode a buffer that has helped prevent a larger surge in global oil prices. But analysts do not expect China to quickly return to its pre-war import levels, as elevated crude prices could squeeze margins for Chinese refineries and the country’s stockpiles are still large enough to last for several months. Signs of a rebound in Chinese demand emerged in... https://www.scmp.com/economy/china-economy/article/3368047/chinas-crude-imports-are-rising-again-what-will-mean-oil-prices?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3368047/chinas-crude-imports-are-rising-again-what-will-mean-oil-prices?utm_source=rss_feed Fri, 18 Sep 2026 13:30:04 +0000 He Huifeng He Huifeng President Xi Jinping is scheduled to sit down with US President Donald Trump in Washington next week, and their planned summit looks to be closely watched as an indicator of the current state of ties between the world’s two largest economies. Economic issues appear poised to drive the agenda again, as they did when Trump travelled to Beijing in May with more than a dozen top American CEOs, including the heads of Tesla, Apple, Nvidia and Boeing. At stake are an extension of their current truce... https://www.scmp.com/economy/global-economy/article/3368020/xi-trump-summit-preview-what-watch-investors-brace-best-and-worst-scenarios?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3368020/xi-trump-summit-preview-what-watch-investors-brace-best-and-worst-scenarios?utm_source=rss_feed Fri, 18 Sep 2026 12:30:08 +0000 Xiaofei Xu Xiaofei Xu The next round of China-EU trade talks is set to take place in Beijing from October 8 to 9, Brussels announced on Thursday following a video call between European Trade Commissioner Maros Sefcovic and Commerce Minister Wang Wentao, adding that Europe wanted to see a “credible” outcome. The European Commission said that during a call lasting more than an hour, the two sides reviewed “extensive work” carried out at senior-official level covering issues including the management of Chinese exports... https://www.scmp.com/economy/china-economy/article/3367937/brussels-announces-next-round-china-eu-trade-talks-be-held-beijing-next-month?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3367937/brussels-announces-next-round-china-eu-trade-talks-be-held-beijing-next-month?utm_source=rss_feed Fri, 18 Sep 2026 02:43:17 +0000 Wency Chen,Ben Jiang Wency Chen,Ben Jiang As technological developments augur an era of renewed space exploration, China is aiming to become a major player. In the second part of this two-part series, Wency Chen and Ben Jiang examine the country’s strategy and progress on reusable rockets – a field where the US has a tremendous lead. US commercial space firm SpaceX has been eager to tout its deployment of reusable first-stage rocket boosters, claiming to have flown more than 600 missions with the cost-cutting launch components. Despite... https://www.scmp.com/tech/tech-trends/article/3367874/china-has-gained-pace-space-race-recovering-rockets-can-it-relaunch-one?utm_source=rss_feed https://www.scmp.com/tech/tech-trends/article/3367874/china-has-gained-pace-space-race-recovering-rockets-can-it-relaunch-one?utm_source=rss_feed Thu, 17 Sep 2026 22:00:12 +0000 Xiaofei Xu Xiaofei Xu European Commission President Ursula von der Leyen’s state-of-the-union speech offered few details on new trade measures targeting China, but its sharp tone was designed to send a message to Beijing, analysts said. During her speech on Wednesday, von der Leyen warned that a “second China shock” was already affecting Europe and vowed that Brussels would use all available tools to rebalance its trade relationship with the country. Her remarks came as the European Union’s October deadline for... https://www.scmp.com/economy/global-economy/article/3367891/von-der-leyens-china-shock-speech-aimed-send-beijing-message-analysts?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367891/von-der-leyens-china-shock-speech-aimed-send-beijing-message-analysts?utm_source=rss_feed Thu, 17 Sep 2026 13:00:07 +0000 Xinyi Wu Xinyi Wu Following the rate increase by the US Federal Reserve, some analysts argue Beijing may still push ahead with rate cuts this year to shore up flagging domestic growth, though a rate increase by the US typically limits room for monetary easing by China’s central bank. The Fed raised interest rates for the first time since 2023 on Wednesday, bringing the benchmark target range up 0.25 percentage points to between 3.75 and 4 per cent. The Federal Reserve’s move has not “significantly” narrowed... https://www.scmp.com/economy/china-economy/article/3367851/after-us-feds-rate-increase-will-china-still-move-ahead-monetary-easing?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3367851/after-us-feds-rate-increase-will-china-still-move-ahead-monetary-easing?utm_source=rss_feed Thu, 17 Sep 2026 11:00:05 +0000 Ralph Jennings,He Huifeng Ralph Jennings,He Huifeng President Xi Jinping has reiterated calls for China to make its supply chains more resilient and self-sufficient while accelerating the creation of a modern industrial system underpinned by advanced manufacturing. Xi’s latest directives, issued at a national conference on advanced manufacturing in Beijing on Wednesday and Thursday, were said to be aimed at strengthening the Chinese economy, the state-run Xinhua reported. Xi’s push this week echoed Beijing’s previous statements and came as the... https://www.scmp.com/economy/china-economy/article/3367877/president-xis-industrial-power-play-sees-china-bet-big-ai-chips-and-smarter-factories?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3367877/president-xis-industrial-power-play-sees-china-bet-big-ai-chips-and-smarter-factories?utm_source=rss_feed Thu, 17 Sep 2026 10:29:58 +0000 Kandy Wong Kandy Wong Figures from some of China’s most prominent firms – including electric vehicle maker BYD and smart manufacturing giant Xiaomi – are likely to accompany President Xi Jinping on his trip to the US next week, according to two sources with knowledge of the matter. The entourage would draw a parallel to the coterie of CEOs that US President Donald Trump brought to Beijing in May, and could signal greater potential for investment deals as part of the high-profile summit. According to one of the... https://www.scmp.com/economy/global-economy/article/3367813/byd-xiaomi-and-innolight-executives-likely-join-xi-jinping-us-visit-sources?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367813/byd-xiaomi-and-innolight-executives-likely-join-xi-jinping-us-visit-sources?utm_source=rss_feed Thu, 17 Sep 2026 06:00:11 +0000 Sylvia Ma Sylvia Ma China cut its holdings of US Treasuries to an 18-year low in July, as overall holdings by foreign countries fell for a second consecutive month amid deepening worries over the sustainability of American government debt. China’s holdings fell to US$618 billion in July from US$633.4 billion in June, data released by the US Treasury Department showed on Wednesday. The July figure was the lowest level since August 2008, when its holdings tumbled to US$573.7 billion, according to Chinese financial... https://www.scmp.com/economy/economic-indicators/article/3367794/china-cuts-us-treasury-holdings-18-year-low-amid-global-bond-sell?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3367794/china-cuts-us-treasury-holdings-18-year-low-amid-global-bond-sell?utm_source=rss_feed Thu, 17 Sep 2026 03:00:14 +0000 Enoch Yiu Enoch Yiu The Hong Kong dollar may come under pressure against the US dollar after the first interest rate rise in three years, but the city does not face a heightened bad-debt risk despite higher borrowing costs, according to the head of the city’s de facto central bank. Hong Kong Monetary Authority (HKMA) chief executive Eddie Yue Wai-man said the US Federal Reserve’s rate rise on Thursday would widen the gap between the market interest rates of the US dollar and the Hong Kong dollar, encouraging more... https://www.scmp.com/business/banking-finance/article/3367783/hkma-raises-base-rate-quarter-point-425-first-increase-2023?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3367783/hkma-raises-base-rate-quarter-point-425-first-increase-2023?utm_source=rss_feed Wed, 16 Sep 2026 23:03:43 +0000 Ralph Jennings Ralph Jennings China is increasingly expected to push for a trade agreement binding a wide swathe of the Pacific Rim, including the US, when it hosts a forum of major Asia-Pacific economies in November, but a real deal may be hard to secure as Washington is likely to resist, according to analysts. The anticipated push for the Free Trade Area of the Asia-Pacific (FTAAP), covering all 21 members of the Asia-Pacific Economic Cooperation (Apec) forum, would – even if unsuccessful – earn Beijing goodwill from other... https://www.scmp.com/economy/global-economy/article/3367713/china-mulls-bid-apec-free-trade-area-taunt-us-tantalise-asia?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367713/china-mulls-bid-apec-free-trade-area-taunt-us-tantalise-asia?utm_source=rss_feed Wed, 16 Sep 2026 13:30:05 +0000 Mia Nurmamat Mia Nurmamat Chinese online travel platform Trip.com has launched a space-flight package priced from 5.1 million yuan (US$759,900), compared with Virgin Galactic’s publicly announced ticket price of US$750,000. The six-day trip includes several days of preflight training followed by a 90-minute suborbital flight operated by US-based provider Virgin Galactic, which departs from Spaceport America, near Truth or Consequences, New Mexico. The first four days are devoted to preparation and training, with the... https://www.scmp.com/economy/china-economy/article/3367720/chinese-travel-platform-sparks-debate-us760000-space-flight-package?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3367720/chinese-travel-platform-sparks-debate-us760000-space-flight-package?utm_source=rss_feed Wed, 16 Sep 2026 11:30:05 +0000 Xiaofei Xu Xiaofei Xu European Commission President Ursula von der Leyen has reaffirmed the bloc’s resolve to use all available tools to rebalance trade with China. After opening remarks about energy and innovation during her annual State of the Union speech at the European Parliament on Wednesday, she quickly pivoted to the EU’s trade deficit with China and contended that the “second China shock” had already arrived. She argued that European firms must compete on a level playing field, noting that while Brussels was... https://www.scmp.com/economy/global-economy/article/3367731/eus-von-der-leyen-vows-tough-china-trade-stance-words-are-good-deeds-are-better?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367731/eus-von-der-leyen-vows-tough-china-trade-stance-words-are-good-deeds-are-better?utm_source=rss_feed Wed, 16 Sep 2026 10:56:09 +0000 Xiaofei Xu Xiaofei Xu Sweden found itself in political uncertainty this week, as its parliamentary election on Sunday turned out to be extremely tight. With 95 per cent of the votes counted, the opposition left-wing bloc holds a three-seat lead over the governing right-wing bloc, with final results expected on Thursday. I’ve been to multiple election night parties across Europe as a journalist. The one on Sunday night with the Social Democrats, the main centre-left party seeking to regain power, was definitely on the... https://www.scmp.com/economy/global-economy/article/3367705/swedens-long-election-night-ends-without-answers-caution-china-seems-certain?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367705/swedens-long-election-night-ends-without-answers-caution-china-seems-certain?utm_source=rss_feed Wed, 16 Sep 2026 09:00:06 +0000 Ziang Liu Ziang Liu The first “China shock” was fairly easy to understand. Beginning in the 1990s, cheap Chinese goods poured into global markets, displacing large parts of lower-end manufacturing across the world. Now, China shock 2.0 seems to be under way, with China taking the lead in electric vehicles (EVs), batteries, solar panels, semiconductors and other more technologically sophisticated industries. This is often perceived as a trade problem, with Chinese manufacturers producing too much, selling too... https://www.scmp.com/opinion/china-opinion/article/3367200/neither-tariffs-nor-export-controls-will-stop-chinas-industrial-engine?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3367200/neither-tariffs-nor-export-controls-will-stop-chinas-industrial-engine?utm_source=rss_feed Wed, 16 Sep 2026 01:30:05 +0000 Sherry Wang Sherry Wang Canada’s exports to China jumped by 30.1 per cent in the first half of 2026, led by crude oil, copper and other energy and mineral products, as Ottawa stepped up efforts to diversify trade ties amid growing tensions with its largest trading partner, the United States. Exports to China reached C$21.74 billion (US$15.63 billion) over the period, marking the highest first-half value since 1997, according to a trade report released by the Canada China Business Council and the China Institute at the... https://www.scmp.com/economy/global-economy/article/3367592/how-canadas-trump-headache-fuelling-china-trade-boom?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367592/how-canadas-trump-headache-fuelling-china-trade-boom?utm_source=rss_feed Tue, 15 Sep 2026 14:00:13 +0000 Frank Chen Frank Chen An intensifying tech race with the United States, along with Beijing’s drive for technological self-reliance, has led China’s leaders to place greater significance and urgency on breakthroughs in sectors ranging from artificial intelligence to integrated circuits and chips in its latest five-year plan for electronics and information technology. The Ministry of Industry and Information Technology and the National Development and Reform Commission, China’s top economic planning agency, on Tuesday... https://www.scmp.com/economy/global-economy/article/3367622/china-bets-chips-and-ai-new-5-year-road-map-challenge-us-tech-dominance?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367622/china-bets-chips-and-ai-new-5-year-road-map-challenge-us-tech-dominance?utm_source=rss_feed Tue, 15 Sep 2026 12:00:02 +0000 Huizhao Huang Huizhao Huang German companies have little choice but to keep investing in China if they want to remain globally competitive, according to a new study by the German Economic Institute (IW) published amid growing calls for Brussels to take a harder line on Chinese trade practices. German firms invested an additional €5.6 billion (US$6.46 billion) in China in the first half of 2026, up about one-third from the same period a year earlier, according to the IW study published on Monday, which cited German central... https://www.scmp.com/economy/china-economy/article/3367591/german-industry-wants-tougher-trade-action-beijing-so-why-are-investments-china?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3367591/german-industry-wants-tougher-trade-action-beijing-so-why-are-investments-china?utm_source=rss_feed Tue, 15 Sep 2026 09:09:45 +0000 Kishore Mahbubani,Steven Okun Kishore Mahbubani,Steven Okun The ending of the American century is coinciding with an Asian renaissance. America remains the world’s largest economy and will stay that way for another decade or two. But its economy no longer dominates the world. And its “America first” policy has partners and allies looking for alternatives for trade and investment – and for certainty. Simultaneously, everyone else is changing. The fastest-growing economies in the 21st century will be Asian. Business leaders must wrestle with the paradox... https://www.scmp.com/opinion/asia-opinion/article/3367322/american-century-ends-asias-renaissance-begins?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3367322/american-century-ends-asias-renaissance-begins?utm_source=rss_feed Tue, 15 Sep 2026 08:30:06 +0000 Sylvia Ma Sylvia Ma With the 11-nation Brics grouping pledging to boost cross-border payment links but making no move towards establishing a common currency, analysts said the vow marked a shift towards a more pragmatic de-dollarisation strategy rather than a retreat from the effort. A 45-page leaders’ declaration issued on Saturday at the Brics summit in New Delhi said the group’s Payment Task Force would continue working to facilitate “fast, low-cost, more accessible, efficient, transparent and safe” cross-border... https://www.scmp.com/economy/global-economy/article/3367452/brics-keeps-de-dollarisation-push-alive-despite-no-common-currency-plan-analysts?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367452/brics-keeps-de-dollarisation-push-alive-despite-no-common-currency-plan-analysts?utm_source=rss_feed Mon, 14 Sep 2026 14:00:05 +0000 Sherry Wang Sherry Wang Kazakhstan plans to launch QR-code payments with China by the end of 2026 – a move that analysts say could expand the yuan’s use beyond trade and investment into everyday transactions while offering a “gentle yet substantive” alternative to the US dollar. The decision comes as Beijing is deepening trade and financial ties under China’s Belt and Road Initiative, while advancing the yuan’s use in cross-border transactions amid a broader de-dollarisation trend. The Central Asian country is... https://www.scmp.com/economy/global-economy/article/3367438/china-kazakhstan-plan-qr-payments-expanding-yuans-reach-overseas-retail-purchases?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367438/china-kazakhstan-plan-qr-payments-expanding-yuans-reach-overseas-retail-purchases?utm_source=rss_feed Mon, 14 Sep 2026 08:30:33 +0000 Peggy Ye Peggy Ye Qatar is stepping up efforts to attract Chinese companies as the US-Israel war on Iran disrupts trade routes in the Gulf, adding urgency to a broader push by Chinese businesses to diversify supply chains and establish operations closer to customers. “Diversification of supply chain is going ahead anyway, right across the world,” said Sheikh Khalifa bin Salman al-Thani, a member of Qatar’s ruling Thani family and chief executive of Qatar-based logistics solutions company WareOne. Chinese... https://www.scmp.com/business/markets/article/3367284/qatar-seeks-capture-chinas-growing-gulf-logistics-push-war-disrupts-trade-routes?utm_source=rss_feed https://www.scmp.com/business/markets/article/3367284/qatar-seeks-capture-chinas-growing-gulf-logistics-push-war-disrupts-trade-routes?utm_source=rss_feed Mon, 14 Sep 2026 02:00:30 +0000 He Huifeng He Huifeng China’s upper-middle-class families are spending more on their children’s local education to help them compete in a tight domestic job market at the expense of summer programmes aimed at gaining admission to foreign universities, a recent survey found. A survey of 277 affluent Chinese families by Babazhenbang, a parenting and education platform with a database covering hundreds of schools preparing students for overseas study, found that 84.5 per cent of families paid for subject-specific... https://www.scmp.com/economy/china-economy/article/3367243/focus-jobs-sees-affluent-chinese-families-spend-more-tutoring-overseas-exposure?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3367243/focus-jobs-sees-affluent-chinese-families-spend-more-tutoring-overseas-exposure?utm_source=rss_feed Sun, 13 Sep 2026 03:00:09 +0000 Anthony Rowley Anthony Rowley The Group of 20 (G20) was launched in 1999 amid high hopes that Asia and other emerging regions of the world would gain a stronger voice in global economic and financial affairs. Things have not worked out that way. Instead, a world order led by the United States stumbled into the 2008 global financial crisis and appears to be on course for another one. This suggests there could be an opening for a new regional organisation – one that is more centred on China or Japan and which can bring the... https://www.scmp.com/opinion/asia-opinion/article/3367041/us-leadership-proves-unreliable-asia-needs-start-focusing-itself?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3367041/us-leadership-proves-unreliable-asia-needs-start-focusing-itself?utm_source=rss_feed Sat, 12 Sep 2026 21:30:06 +0000 Xinyi Wu Xinyi Wu The Japanese yen has climbed from multi-decade lows, driven by shifting policy expectations and returning domestic capital, putting the yen carry trade – a popular global investment strategy – back in the spotlight and raising questions about its long-term viability. Having strengthened by more than 3 per cent since the start of the month to about 153.5 against the US dollar, the currency is trading near a seven-month high and above levels reached after a rare joint US-Japan market intervention... https://www.scmp.com/economy/global-economy/article/3367246/yen-carry-trade-starting-unravel-japans-currency-strengthens?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3367246/yen-carry-trade-starting-unravel-japans-currency-strengthens?utm_source=rss_feed Sat, 12 Sep 2026 04:00:12 +0000