On July 10, German automaker BMW and Chinese SUV manufacturer Great Wall Motor reached an agreement to work together to produce electric MINI vehicles, of Mini Cooper notoriety, in China. The joint venture will be called Spotlight Automotive Ltd and will focus on researching, developing, and manufacturing electric vehicles. – Weiting Li
On Wednesday, July 25, 2018, South African President Cyril Ramaphosa opened the 10th BRICS (Brazil, Russia, Indian, China, and South Africa) summit in Johannesburg, South Africa. A number of major agreements concluded the summit, including… Read more for our assessment and detailed summary. – Ziqing Zhang
On July 26th, the U.S. House of Representatives passed the John S. McCain National Defense Authorization Act for the following year (2019) by a vote of 359-54. This large majority vote revealed rare bipartisan support for the $716 million US dollar (USD) bill. – Weiting Li
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On July 25th, Chinese President Xi Jinping visited Johannesburg, South Africa for the 10th BRICS (Brazil, Russia, India, China, and South Africa) summit. During his visit, Xi signed Rwanda and Senegal on to Belt and Road Initiative (BRI) projects, though additional details are still forthcoming. In order to take advantage of the opportunities associated with the upcoming China-sponsored construction projects, American small and medium companies should consider entering joint-ventures with Chinese companies, especially construction companies.
On June 28, Chinese officials announced the loosening of restrictions on foreign investments in a variety of industries in the country’s 12 free trade zones, ranging from agriculture to banking. China’s Commerce Minister Zhong Shan stated that China “will continue to defend the global multilateral trading system” and that this move was part of a greater plan to continue opening up its market to the world. China’s National Development and Reform Commission (NDRC), the top economic planning organization for the country, published the latest version of the Special Administrative Measures on Access to Foreign Investment 2018, also known as the “negative list,” a document that enumerates which industries foreign firms are prohibited from investing in. The number of sectors on the list is now just 48, a noticeable drop from 2017’s 63, and 2011’s 120. For the sectors not listed in the publication, foreign firms (on paper) are given equal treatment to domestic companies although recent surveys by the American Chamber of Commerce indicate a different picture. Many experts argue the changes are mostly superficial but the reduced list does provide opportunities for foreign investors to take advantage of.
China launched a 5-day military drill in the East China Sea expected to continue through July 23 showcasing capabilities that reinforce the military’s ability to retake Taiwan. The Zhejiang Maritime Safety Administration cautioned merchant and civilian vessels transiting between Zhoushan to Wenzhou along the east coast of Zhejiang Province on July 16 to avoid the area, which is roughly the size of Taiwan. Read more on potential impacts to business operations and policy here.
Apple, a leading American tech giant, is showing its growing interest in renewable energy development in China, even amid trade tensions with the U.S. On July 13, Apple announced plans for a $300 million US dollar (USD) investment to launch a clean energy fund in China. The fund aims to develop renewable energy projects and generate more than 1 Gigawatt of clean energy which hopes to power 1 million households in China. – Weiting Li
The Australian government is preparing to officially prohibit Chinese telecommunication giant Huawei from participating in its 5G mobile broadband project, citing national security concerns. For a detailed summary and our assessment, read more here.
Following the latest round of American tariffs on Chinese goods July 5, Beijing responded with retaliatory tariffs imposed on July 6, adding a 25% duty targeting American soybeans, meat, and vehicles. US farm produce, especially beef and high-end steaks, is expected to take a significant hit as exports to China becomes increasingly more expensive. The duty rate on US beef to China is being tripled from 12% to 37%, just as US beef was beginning to reemerge as a strong player in Chinese markets. – Dillon Billingham
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