BEIJING: In China’s manufacturing heartland around the Pearl River Delta, Donald Trump’s 10% tariffs are causing little concern. The 25% duties that loom next year are another matter. Ben Yang, a furniture maker producing contemporary designs out of his facility in Dongguan – about 30 miles from Hong Kong – says that if those higher charges materialise from January as planned, the US share of exports from his Sunrise Furniture Co could plunge from 90% to less than a third. “Our major rival is Vietnam and 10% tariffs aren’t enoughRead More
KUALA LUMPUR, Oct 18 — The new National Industry 4.0 Policy Framework serves as a strategic guide to enable the transformation of the manufacturing sector and accelerate the adoption of the Industry 4.0 related technologies in response to the…
PETALING JAYA: The Ministry of International Trade and Industry’s (Miti) four-day trade and investment mission to Tokyo and Osaka, Japan has pulled in RM806 million investment from Japanese companies.
Miti said in a statement that Japan’s construction firm Daiwa House Industry Co Ltd will channel in RM74 million to construct a logistics facility with cold storage services in Malaysia, while Japan Lifeline Co Ltd will invest RM80 million to build factory in North Penang Science Park.
Miti said the remainder RM355 million was from Daikin Industries Ltd for new factory development and a proposed investment of RM297 million from Dai-ichi Seiko Co Ltd for the manufacturing of plastic parts for automotive sensors.
It also noted that potential investments in Tokyo were valued at RM 1.08 billion, mainly concentrated in the petrochemical industry, logistics and medical devices.
“In Osaka, potential investments were RM1.05 billion and potential import of RM33 million. These potential investments were mainly concentrated in the electrical and electronics industry, while, potential trade is mainly from furniture, household products and ‘do it yourself’ products,” it added.
PHNOM PENH: A European Union decision to ramp up trade pressure on Cambodia has alarmed unions in its garment industry, a pillar of the economy that employs about 700,000 people, but a key grouping of manufacturers said the risk would take months to materialise. Cambodia’s biggest export market, the EU, warned this month that the […]
HANGZHOU, CHINA: Humming away in an industrial estate in the eastern Chinese resort city of Hangzhou, electric vehicle designer Automagic is one of hundreds of companies looking to ride the country’s wave of investment in clean transportation. The company wants to find a niche in a crowded sector that already includes renewable equipment manufacturers, battery makers […]
SHAH ALAM, Oct 17 — Top Glove Corporation Bhd, the world's largest rubber glove manufacturer, aims to improve the profit of its newly-acquired company, Aspion Sdn Bhd, in the next five years. Executive Chairman Tan Sri Lim Wee Chai said the group…
PHNOM PENH, Oct 17 — A European Union decision to ramp up trade pressure on Cambodia has alarmed unions in its garment industry, a pillar of the economy that employs about 700,000 people, but a key grouping of manufacturers said the risk would…
HANGZHOU, Oct 17 — Humming away in an industrial estate in the eastern Chinese resort city of Hangzhou, electric vehicle designer Automagic is one of hundreds of companies looking to ride the country's wave of investment in clean transportation….
CHENNAI/NEW DELHI: Labour unrest is on the rise at two centres in India where motorcycles and components are manufactured, underlining the problems Prime Minister Narendra Modi’s government faces in creating new manufacturing jobs that are sustainable and pay attractive wages. Motorbike makers, such as Japan’s Yamaha, and India’s Eicher Motors – maker of the iconic Royal […]
BEIJING: At week's end, global investors and policy-makers will likely be given a stark reminder of the costs of a bitter Sino-US trade war, with a Reuters poll predicting that China's third-quarter growth will slow to its weakest pace since the global financial crisis.
Domestic demand has been faltering in recent months as US President Donald Trump's campaign to force China to make sweeping changes to intellectual property, industrial subsidy and trade policies start to depress export earnings.
Beijing has been trying to ward off a sharper slowdown in the world's second-largest economy by stepping up policy support and softening its stance on a de-risking campaign, as the full impact of higher US trade tariffs has still to be felt.
And analysts said more support measures will be needed as risks to China's growth outlook have increased since the second half of the year.
A poll of 68 economists showed gross domestic product likely grew 6.6% in July-September from a year earlier, slowing from the previous quarter's 6.7% and hitting the weakest pace since the first quarter of 2009. The predicted third-quarter growth would still be higher than the government's full-year target of around 6.5%.
“The downward pressure on the economy is relatively big as consumption weakens and infrastructure investment has yet to stabilise” from a slowdown, said Tang Jianwei, senior economist at Bank of Communications in Shanghai.
“It's necessary to make policy adjustments as the external pressure increases.”
Recent economic data have pointed to weakening local demand ranging from infrastructure investment to consumer spending, as a multi-year crackdown on riskier lending and debt has pushed up companies' borrowing costs.
Growth in China's vast factory sector in September stalled after 15 months of expansion, with export orders falling the most in more than two years, according to private survey showed.
An official survey also confirmed that manufacturers were coming under stress.
There are signs that firms have ramped up shipments before broader and stiffer US tariffs take effect, which likely explains an unexpected acceleration in China's exports growth in September and a record trade surplus with the US.
The yuan has lost about 6% against the dollar this year, which may have taken the sting out of the US tariffs, but could fan risks of capital outflows.
Export-reliant Chinese cities and provinces are already showing the strain. Guangdong, China's biggest province by gross domestic product, reported a drop in exports in the first eight months from a year earlier.
The world's two biggest economies last slapped tit-for-tat tariffs on each other's goods on Sept 24, with the US levying duties on US$200 billion (RM830 billion) of Chinese goods. – Reuters