Business
China December New Yuan Loans Seen Lower but Hitting Record in 2019: Reuters Poll
BEIJING—New bank loans in China likely fell in December but lending for all of 2019 still set a record, a Reuters poll showed, as the central bank eases policy to support the slowing economy.
Chinese banks are estimated to have issued 1.194 trillion yuan ($171.7 billion) in net new yuan loans last month, down from 1.39 trillion yuan in November, according to the median estimate in the survey of 31 economists.
If December data, due during the coming week, is in line with forecasts, total new lending in 2019 would hit 16.88 trillion yuan, up 4.3 percent from the previous record of 16.17 trillion yuan in 2018.
Analysts say faster credit expansion will be key to stabilizing economic growth, which cooled to 6 percent in the third quarter of 2019, the slowest since the early 1990s.
To spur lending, the People’s Bank of China (PBOC) has cut banks’ reserve-requirement ratios (RRR) eight times since early 2018 and pumped out trillions of yuan in liquidity. But the central bank has been wary of rising debt and high property prices and looks increasingly reluctant to ease more aggressively.
The PBOC has also lowered its key lending rate in recent months, with more cuts expected possibly before the end of this month.
China will keep its inflation target unchanged this year at around 3 percent, sources said, suggesting policymakers will continue to roll out more economic support measures while avoiding aggressive stimulus.
China plans to set a lower economic growth target of around 6 percent in 2020 from 6-6.5 percent in 2019, policy sources said.
Analysts say the U.S-China Phase One trade deal, expected to be signed this month, will relieve only some of the pressure weighing on the Chinese economy, which has also been hobbled by sluggish domestic and global demand, slowing investment and weakening business confidence.
Beijing has been leaning more heavily on fiscal stimulus to weather the downturn, cutting taxes and issuing local government bonds to fund infrastructure projects.
The government has brought forward 1 trillion yuan of its 2020 local government special…
Business
China Limits Apple Operations as BYD Manufacturing Moves to India and Southeast Asia Amid Trade Frictions | International Business News – The Times of India
China is restricting the export of high-tech manufacturing equipment and personnel to India and Southeast Asia, aiming to maintain domestic production amid potential US tariffs, impacting companies like Foxconn and BYD.
China Curbs on High-Tech Manufacturing
China is intensifying restrictions on the movement of employees and specialized equipment essential for high-tech manufacturing in India and Southeast Asia. This measure aims to prevent companies from relocating production due to potential tariffs under the incoming US administration. Beijing has urged local governments to restrict technology transfers and export of manufacturing tools as part of this strategy.
Impact on Foxconn and Apple’s Strategy
Foxconn, Apple’s primary assembly partner, is facing challenges in sending staff and receiving equipment in India, which could impact production. Despite these hurdles, current manufacturing operations remain unaffected. The Chinese government insists it treats all nations equally while reinforcing its domestic production to mitigate job losses and retain foreign investments.
Broader Implications for India
Additionally, these restrictions affect electric vehicle and solar panel manufacturers in India, notably BYD and Waaree Energies. Although the measures are not explicitly targeting India, they complicate the business landscape. As foreign companies seek alternatives to China, these developments are likely to reshape manufacturing strategies amidst ongoing geopolitical tensions.
Business
EFIS Maroc and China Eastern Airlines Set to Launch Service Between Morocco and China
China Eastern Airlines and EFIS Maroc will launch three weekly flights between Casablanca and Shanghai via Marseille starting January 19, 2025, enhancing cargo logistics for Morocco-China trade, particularly in the automotive sector.
New Flight Route Launch
China Eastern Airlines has partnered with EFIS Maroc to introduce three weekly flights between Casablanca (CMN) and Shanghai (PVG) via Marseille (MRS). This service is set to commence on January 19, 2025, operating on Tuesdays, Fridays, and Sundays, using Boeing 787-900 aircraft with a capacity of 18 tonnes for cargo.
Supporting the Automotive Industry
The service aims to enhance logistical support for the automotive sector, facilitating the secure and timely transport of high-value components between Morocco and China. This new route will not only strengthen local supply chains but also promote economic growth and trade relations between Africa and Asia.
Innovative Cargo Solutions
Jean Ceccaldi, CEO of ECS Group, emphasized that this collaboration marks a significant achievement for EFIS Maroc. Leveraging advanced digital tools like Squair for customs optimization and CargoAi for booking, EFIS Maroc will enhance operational efficiency, ensuring a superior cargo management solution tailored for China Eastern Airlines.
Source : EFIS Maroc and China Eastern Airlines to launch Morocco-China service
Business
China Considers Selling TikTok US Operations to Musk as a Viable Option – Bloomberg
China is considering the sale of TikTok’s U.S. operations to Elon Musk as a potential option, according to a report by Bloomberg.
Potential Sale of TikTok to Elon Musk
Reports suggest that China is considering the sale of TikTok’s U.S. operations to Elon Musk as a viable option. This development follows ongoing scrutiny over the app’s data privacy practices and its links to the Chinese government. Officials believe that a sale could alleviate international concerns and preserve the platform’s presence in the U.S. market.
Strategic Implications
The potential transaction raises numerous strategic implications, not only for TikTok but also for Musk’s other ventures. If Musk were to acquire TikTok, it could enhance his digital footprint and provide new avenues for advertising and user engagement. Conversely, it could pose challenges in managing regulatory compliance and addressing data security issues.
Regulatory Hurdles Ahead
Despite the intriguing prospect of a sale, significant regulatory hurdles remain. Any acquisition would require approval from U.S. authorities, who continue to assess the risks associated with foreign ownership of tech companies. The outcome of these discussions could have widespread ramifications for both TikTok and the broader social media landscape.
Source : China Weighs Sale of TikTok US to Musk as a Possible Option – Bloomberg
- China Limits Apple Operations as BYD Manufacturing Moves to India and Southeast Asia Amid Trade Frictions | International Business News – The Times of India
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- EFIS Maroc and China Eastern Airlines Set to Launch Service Between Morocco and China
- China Considers Selling TikTok US Operations to Musk as a Viable Option – Bloomberg
