KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The World Trade Organization (WTO) has criticized China for its lack of transparency in providing financial support to key industrial sectors such as electric vehicles, aluminium, and steel production. In its latest assessment, the WTO noted that while China has supported these industries financially from 2021 to 2024, it failed to provide enough information for a complete understanding of these programmes.
"The overall lack of transparency on China's government support may also contribute to debates on what is perceived by some as overcapacity in certain sectors," the WTO report stated. The report mentioned several sectors, including semiconductors and shipbuilding, where transparency was particularly lacking.
A key concern was the inability to determine the extent of Chinese government funds used for equity investments in crucial industries. The 173-page review is part of the WTO's regular trade policy assessment, which all 166 members undergo periodically.
Several Western countries, including the US, Australia, Britain, and the European Union, criticized China's industrial policies during the review. The US accused China of "predatory" practices that harm other economies. David Bisbee, the US deputy permanent representative, said, "The PRC has doubled down on its state-led, nonmarket approach to the economy, to the detriment of workers and businesses in the United States and other countries, including emerging and developing economies."
China has consistently claimed adherence to market principles and compliance with WTO rules, including the prohibition of certain subsidies for electric vehicles. In its response to the review, China asserted that it abides by the commitments made when it joined the WTO in 2001 and is open to discussions on industrial subsidies within a clearly defined framework.
All WTO members are required to comply with the organization's Anti-Subsidy and Countervailing Measures agreement, which prohibits government subsidies that harm other members' trade or aim to distort global trade.
Since China's last review in 2021, its significance in the global economy and trade has grown. Despite the criticisms, some Western countries acknowledged China's contributions to the WTO. EU Ambassador Aguiar Machado urged China to reconsider using its "developing" country status for preferential treatment, given its economic growth. Britain's ambassador Simon Manley noted that China's participation has positively influenced ongoing negotiations.
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