MONEY MASTER

  China’s commerce minister, Wang Wentao , stated on Wednesday that Beijing will continue to negotiate "until the last minute" regarding the European Union's (EU) investigation into electric vehicle (EV) subsidies , which is seen as a threat to Chinese investments in Europe. Speaking at a China-Europe EVs event in Brussels, where top executives from both Chinese and European EV industries gathered, Wang emphasized the need to resolve the anti-subsidy case that has raised tensions between the two sides. The meeting comes ahead of Wang's scheduled talks with European Commission trade commissioner Valdis Dombrovskis on Thursday to address escalating trade concerns. The European Commission is set to propose tariffs of up to 35.3% on Chinese-built EVs, in addition to the EU’s standard 10% import duty on cars. The final decision on these tariffs will be made after a vote by the EU’s 27 members on September 25. The tariffs could take effect by the end of October unle...

China announced plans to initiate an anti-dumping investigation into canola imports from Canada following Canada's recent decision to impose tariffs on Chinese electric vehicles (EVs) and other goods. This development is the latest in a series of escalating trade tensions between the two countries. Key Takeaways: Retaliation for Canadian Tariffs : China's announcement comes after Canada imposed a 100% tariff on Chinese electric vehicles and a 25% tariff on imported steel and aluminum, aligning itself with similar actions taken by the US and the European Union. China's Commerce Ministry condemned these "discriminatory unilateral restrictive measures," stating that it opposes Canada's actions despite the objections of multiple parties. Allegations of Dumping and Market Impact : The Chinese investigation focuses on the rapid increase in Canadian canola exports, which rose by 170% year-on-year to $3.47 billion in 2023, accompanied by a decline in prices. The Chine...

Chinese electric vehicle (EV) brands captured a record 11% share of the European market in June, driven by a surge in registrations before new European Union (EU) tariffs took effect this month. SAIC Motor Corp led the charge, shipping its MG4 hatchback in significant volumes, according to Dataforce analysts. Cars registered before July 5 could be sold without the added duties on imported EVs. Chinese brands registered over 23,000 battery-electric vehicles across Europe in June, marking a 72% sequential jump from May, which was double the gain in overall European EV registrations. The new EU tariffs impose an additional 38% charge on SAIC and 17% on BYD, on top of the existing 10% customs duty. This development will be closely monitored to see if the volume gains can be sustained. Carmakers on both continents are rushing to add European EV manufacturing to avoid these new duties, amid rising tensions between Beijing and Brussels. SAIC's increase in Chinese-branded imports was signi...

Key Points: Sales Forecast Adjustment: Volvo Car AB lowered its 2024 sales growth forecast to 12%-15%, down from at least 15%. The adjustment is due to uncertainties related to the EU-China trade conflict over EV subsidies. Impact of Trade Conflict: The EU's trade spat with China affects Volvo, as it makes electric vehicles in China and could face tariffs. CEO Jim Rowan cited uncertainty around trade tariffs and their potential impact on demand as reasons for the forecast adjustment. Second-Quarter Performance: Despite the trade issues, Volvo had a strong second quarter. Operating income rose to 8 billion kronor ($758 million), beating analysts' expectations of 6.6 billion kronor. The company saw strong demand for its electric and plug-in hybrid models and maintained good pricing and cost discipline. Future Plans: Volvo's EX30, a compact electric SUV made in China, has been in high demand. Production of the EX30 will begin at Volvo's Ghent, Belgium plant next year. CEO ...