Alicia García Herrero (Natixis) | The Biden-Xi summit in San Francisco on 15 and 16 November 2023 might feel underwhelming for its lack of concrete announcements, especially given the long list of pending issues which had piled up since their last encounter on the sidelines of the G20 in Bali. Disappointments were equally shared by the two sides. On the Chinese side, the most pressing issue was likely the lifting…
Alicia García Herrero (Natixis) | The importance of the much-expected meeting between President Biden and President Xi in San Francisco cannot be understated, no matter the likely shallowness of the outcomes.The fact that there have only been two face-to-face since Biden took over from President Trump says it all about the importance of this encounter as the pinnacle of a series of meetings to step up dialogue between the two…
Alicia García Herrero (Natixis) | During her State of the Union address on 13 September, European Commission President Ursula von der Leyen announced that the European Union would undertake an anti-subsidy probe against the Chinese electric vehicle (EV) sector. This signalled a major step in the EU’s shift to a more aggressive trade defence against China and raises the question of how China will react, given the importance of the…
Banca March : The European Union adds steel manufacturers to its list of anti-subsidy investigations into Chinese products. On 4 October, the EU began this process on electric vehicles from China; three days ago, it considered the study on windmills; and since yesterday, on steel mills. Washington has asked to create a common front with the European bloc, which would implement greater scrutiny on China, in exchange for avoiding the…
Banca March: The International Monetary Fund (IMF) is considering increasing China’s voting rights to bring its share in the fund in line with its position in the global economy. Each country contributes a quota based on various factors reflecting economic positioning relative to the world economy. This quota designates the amount each country has to pay into the fund, as well as its voting rights. Currently, the Asian giant has…
Banca March: The World Bank has updated its economic forecasts for East Asia and the Pacific in its October report. Although the regions in question have shown a recovery from pandemic levels, the association warns of slow development. While the outlook for China’s output rates in 2023 is maintained (5.1%), those for next year 2024 are down from April’s estimates (4.8% to 4.4%). Likewise, the contagion effect of the Chinese…
White House National Security Advisor Jake Sullivan and Chinese Foreign Minister Wang Yi met this weekend in Malta. The aim is to pave the way for a meeting between Presidents Joe Biden and Xi Jinping expected to take place in November. The two governors may have the opportunity to meet at the Asia-Pacific Economic Cooperation Forum in San Francisco. The Chinese minister said the two sides had agreed to hold…
Banca March: China is taking steps to revive the real estate sector. In order to support the real estate market and revive the economy, the Chinese government is once again focusing on demand. On the one hand, local governments in major cities are offering more favourable conditions to first-time homebuyers. On the other hand, for people wishing to buy a second home, the country had strong restrictions to avoid massive…
BancaMarch| US President Joe Biden on Wednesday signed an executive order that effectively limits US investment in several Chinese tech firms. According to Biden, China’s strategy facilitates and supports “advances in sensitive technologies and products that are critical to the military, intelligence, surveillance or cyber capabilities of other countries”. The ban is limited to three key sectors of the Asian giant: semiconductors, quantum computing and artificial intelligence. At the same…
BancaMarch: China responds to the United States. As one of the world’s leading producers, China is imposing new export controls on drones and related equipment. Yesterday, the Chinese government announced new controls that will take effect from September.