Trump Tariffs Draw China’s Ire

[para. 1] Over the past week, China has been at the center of several notable developments making headlines. These range from international trade tensions to changes in financial and legal frameworks within the country.

[para. 2] China strongly opposes the new U.S. tariffs, which impose a 34% tax on Chinese imports. The Chinese commerce ministry argues that these tariffs will adversely affect both U.S. interests and global economic development. President Trump's announcement could profoundly alter the global economic landscape. In response, China plans to implement countermeasures to defend its economic interests.

[para. 3] Four major Chinese state-owned banks are set to bolster their financial resources by issuing shares valued at up to 520 billion yuan (approximately $71.5 billion). China Construction Bank Corp., Bank of China Ltd., Bank of Communications Co. Ltd., and Postal Savings Bank of China Co. Ltd. will undertake these private placements, primarily sold to the Ministry of Finance. These issuances are priced above market rates yet below book value, which could pressure stock prices. However, the additional capital will enable these banks to expand their lending capacity. This move underscores China's expansionary fiscal policy amidst slowing profit growth.

[para. 4] In its legal sphere, Xiamen will introduce a personal bankruptcy system, becoming the second Chinese city to do so after Shenzhen. This new framework is designed to fairly manage debt relief for individuals unable to repay their debts while safeguarding creditors' rights. The regulation, currently in the draft stage for public feedback, integrates international best practices and aims to protect "honest but unfortunate" debtors, preventing potential abuses.

[para. 5] Regarding safety and technology, CATL clarified that the Xiaomi electric vehicle involved in a recent fatal crash did not use its batteries. The vehicle, using assisted driving technology, caught fire after hitting a barrier, killing all three occupants. This incident highlights potential safety concerns as the model has seen over 200,000 units delivered since March 2024.

[para. 6] Huawei Technologies Co. Ltd. reported a 22% increase in revenue last year, totaling 862 billion yuan. This growth was largely due to its resurgence in the high-end smartphone market and booming smart car sales. Despite a decline in net profits, attributed mainly to a previous one-off financial gain, Huawei's pre-tax profit saw a nearly 80% rise, signaling strength in its core business areas such as the chip sector and its HarmonyOS ecosystem.

[para. 7] CK Hutchison Holdings Ltd., amidst rumors of a potential spin-off of its telecom assets in Europe, Hong Kong, and Southeast Asia, has not confirmed any decisions. While sources suggest preparations for a London listing are underway, recent controversies surround the company's sale of its global port operations to a BlackRock-led consortium.

[para. 8] In the automotive sector, China Evergrande's New Energy Vehicle Group Ltd.'s subsidiary in Shanghai has entered bankruptcy liquidation. This follows earlier restructuring efforts at its Guangzhou affiliate, with the company's manufacturing capabilities severely impacted.

[para. 9] China's cyberspace and sports authorities have embarked on a campaign against toxic fan culture, particularly heightened during the Paris Olympics. The crackdown has resulted in the removal of 1.6 million harmful online posts and the closing of thousands of disruptive accounts. This initiative aims to eliminate online harassment and protect athletes from cyberbullying and malicious rumors.

[para. 10] The above events were compiled by the Caixin newsroom, reflecting the diverse and rapidly evolving landscape within and around China.