Global investors and companies are looking forward to riding the wave of China's burgeoning high-tech sector as China's economic growth and technological advancements have opened a world of opportunities, said an analyst from the United Arab Emirates (UAE) following the just-concluded third plenary session of the 20th Central Committee of the Communist Party of China (CPC).
The CPC Central Committee held the session in Beijing from Monday to Thursday and adopted a resolution on further deepening reform comprehensively to advance Chinese modernization.
In an interview with the China Global Television Network (CGTN), Jameel Ahmad, chief analyst at GTC Group, a global broker of financial derivatives, said with the Chinese economy focusing more on technology and high-end manufacturing, it will bring boons to foreign companies.
"We've seen a lot of progress and a lot of evolution right now in the Chinese economy. While maybe before you look to China as an economy that would produce low-cost goods that can be shifted overseas and so forth. While if you look at it more now that the structure of the Chinese economy, there is more focus on tech and high manufacturing jobs. And this suggests a lot about how China's economy is going to continue to evolve and in some ways try to compete with the U.S. when it comes to a major technology power of the world, similar to Silicon Valley. I think that's why investors are looking for over the longer term and one of the advantages as well is that following the conclusion of this meeting, it is expected that major executives from top companies globally will visit China for more talks about how they can help contribute to these targets," the analyst said.
The reforms discussed at the third plenary session have garnered significant attention, particularly due to their potential impact on both domestic and international economic growth.
Ahmad highlighted the significance of these reforms and emphasized the desire of international investors to see further opening up of the Chinese economy.
"Before we were looking at more of a 2015 China plan, which was unleashed nine years ago. I think much of that plan is actually being achieved. But this makes sense more about setting the stone and the framework for how the rest of the 2020s can progress for the Chinese economy. And clearly, the international environment, the international investors are still expecting China to remain as a major economic power and also a major trading partner. So much of the world economy is extremely sensitive on demand from China. That's because of how much the Chinese economy has progressed over the past couple of decades. I think that moving forward, investors do want to see further reforms, further stimulus, and they want to see further opening up of the Chinese economy. Not because the Chinese economy doesn't have the potential, but it's because international investors also want to be in China, in the mainland for the longer term, which is why issues such as what's happening with the currency, whether the currency can be freely flow in the future as well as how the Chinese invest in infrastructure and that standardization will be put in place. That's why it's very important for everybody," he said.
Global investors, companies look forward to engaging with China's burgeoning tech sector: UAE analyst
Global investors, companies look forward to engaging with China's burgeoning tech sector: UAE analyst
The U.S. government's decision to hike tariffs on Chinese-made products, including electric vehicle batteries, critical minerals, steel and aluminum, will not only harm its economy but also tarnish its global reputation, said a China Media Group (CMG) commentary published on Sunday.
An edited English-language version of the commentary is as follows:
In May, the U.S. government announced plans to further increase tariffs on Chinese electric vehicles and other products while maintaining the existing Section 301 tariffs on China. The measures were initially scheduled to take effect on Aug 1 but were postponed twice, first on July 30 and then on August 30, as the U.S. officials claimed that they needed more time to review over one thousand public opinions.
Despite a large number of public opinions opposing the imposition of additional tariffs or requesting broader tariff exemptions, the U.S. government ultimately refused to listen and went its own way. This unilateral and protectionist approach not only violates the U.S. commitment to "not seeking to suppress or contain China's development" and "not seeking to decouple from China", but also goes against the consensus reached by the two heads of state, showing that the United States is going back on its own words and breaking its own commitments made to China.
In the finalized decision released by the U.S. government, most of the items announced in May have been adopted, including a 100 percent additional tariff on electric vehicles, a 50 percent additional tariffs on semiconductors and solar cells, and a 25 percent additional tariffs on steel, aluminum, lithium-ion batteries and critical minerals.
The decision also proposed to include tungsten, wafers, and polysilicon products into the list of products subject to additional tariffs.
Analysts believe that the political implications behind the U.S. tariff hike are quite evident. With the election season approaching, both parties are intensifying their campaigns, and adopting a tough stance on China has become a form of political correctness.
During a recent TV debate, the Democratic presidential candidate criticized the Republican candidate's tariff strategy, while the current Democratic administration has ratcheted up tariffs on China just months before the end of this term.
Engaging in a tariff war will not resolve the issues, but may instead backfire on the United States. The Information Technology Industry Council, a Washington-based global tech trade association, on Friday released a statement from its President and CEO Jason Oxman, saying that the additional tariffs on China have resulted in a cumulative loss of 221 billion U.S. dollars for American companies and consumers since they were implemented.
The U.S. government has been claiming to protect domestic industries by imposing additional tariffs and even pushing for the relocation of supply chains. However, the outcomes have fallen short of expectations. The U.S. companies could hardly agree with these measures.
The U.S. tariff hike this time is primarily targeting China's new energy sector. Research indicates that the trade transfer effects of U.S. tariff measures are limited. Raising tariffs have increased import costs for the United States instead of achieving the purpose of reducing dependence on China.
The American people have also suffered a lot as a result. As the Biden administration maintained tariff hikes on certain Chinese-made products first announced during the Trump era, Americans are still paying more for shoes, suitcases and hats, according to a recent Cable News Network (CNN) report.
Estimates from Moody's, a leading rating agency, suggest that 92 percent of the costs from the raised tariffs will be borne by U.S. consumers, increasing the average American household's expenses by 1,300 U.S. dollars annually. Many economists caution that these higher tariffs will merely lead to increased costs for American consumers.
Data from the U.S. Tax Foundation indicates the tariff increase on China has not only failed to address employment issues for American workers, but also led to the loss of 142,000 jobs across the country.
For the United States, increased tariffs on China have further damaged its international image. The World Trade Organization has long ruled that the Section 301 tariffs violate WTO rules. However, instead of rectifying its wrongdoings, the United States has further increased tariffs on Chinese products, making one more mistake and once again proving that it is an outright disruptor of international rules.
The significant rise in tariffs imposed by the United States on China may jeopardize global trade and economic growth, and hinder the global green transformation pursuit.
It is known to all that Chinese companies involved in electric vehicles, lithium-ion batteries, photovoltaic batteries and other related industries have been actively promoting international cooperation in production and supply chains, contributing to the global economy and advancing green, low-carbon initiatives.
The U.S. approach of decoupling and disrupting industrial and supply chains is posing risks to both current and future prospects for humanity.
It has been proved time and again that the U.S. abuse of Section 301 to hike tariffs on China is unpopular, and its attempt to undermine Chinese companies and related industries through raising tariffs has never worked.
This round of U.S. high tariffs targeting China's new energy sector will not work either, but will only hurt its economy and image even further.
The U.S. should rectify its wrongdoings immediately and remove all additional tariffs on Chinese goods, or China will take necessary measures to firmly safeguard the interests of Chinese enterprises.
US tariff hikes on Chinese goods hurt its own economy, reputation: commentary
