Tag is: People of China

The Chinese leader: We hope to develop stable relations with the United States.

by the Logistics TransportIn the Category: Logistics

In the meeting with Sullivan, both countries and China-United States relations Noting that there have been great changes, ⁇Despite this, Beijing's commitment to developing stable, healthy and sustainable Sino-US relations remains unchanged.He said ⁇ .

The Chinese leader with the United States and mutual respect, While noting that the principles of interaction on the basis of peaceful coexistence and mutually beneficial cooperation remain unchanged for the country, the Beijing administration's unwavering stance on firmly defending the country's own sovereignty, security and development interests, as well as the Continuing the traditional friendship He stressed that his efforts remained the same.

The two major powers, China and the United States, peace in the world and the source of its stability, should also become the engine of development, Şi continued his words as follows:

We hope that the USA will approach Çin ⁇ , look at Çin ⁇ 's development from a positive and rational perspective, see each other's development as an opportunity, not a challenge, and work with China to look for the right way for the two great powers to work together.

⁇ (translated)People want openness and progress, not closure and regressionHe added that countries need unity and coordination rather than division and conflict in the face of a changing and turbulent world.

The United States does not seek to start a conflict with China.

Speaking at a meeting with Chinese leader Xi Sullivan, While emphasizing that they do not support Taiwan's independence, a new the Cold War He said he wasn't looking for a start.

Underlining that the U.S. does not intend to enter into conflict with China, Sullivan said,The United States is not trying to start a new Cold War, it is not trying to change the Chinese system, it does not want to confront China by strengthening the alliance system, it does not support Taiwan's independence and He has no intention of entering into conflict with China. I want to emphasize againHe said ⁇ .

Sullivan, President of the United States Joe the Biden ⁇ President of China in the near future Looking forward to meeting Xi When he said his words, ⁇The United States hopes to maintain strategic contacts with China and find a way for the two countries to live together peacefully and for the sustainable development of China-U.S. relations. President Biden looks forward to meeting with President Xi Jinping again soon⁇ completed it.

Chinese leader Xi, while conveying his greetings to Biden ⁇ a, Ready to Keep Contacts He added that it was.

The possibility that the two leaders will meet at the G20 Summit in Rio de Janeiro, Brazil on November 18-19 is not excluded.

$55 billion stock crash warns of Chinese economy

by the Logistics TransportIn the Category: Logistics

One of the last bright spots left for consumption in China is rapidly disappearing, as the country's economic shortage has negatively affected demand for even the most accessible goods. In a recent warning to global markets about the health of the Chinese economy, Temu ⁇ 's owner PDD Holdings Inc. surprised investors with an unusually bleak outlook on Monday. The e-commerce firm, which became a favorite of the market with low-priced products that helped revive jobs during China's economic downturn, reported an income that fell short of forecasts. CEO Chen Lei said at least eight times in his post-earnings briefing that incomes and profits should inevitably fall as economic growth slows. Chen, who was also one of the first employees of PDD ⁇ , told analysts that ⁇ We are seeing many new challenges arising from weakening consumer demand, intensifying competition and uncertainties in the global environment ⁇ .

The CEO and his aides took care to emphasize that their long-term confidence in Chinese consumption continues. This balancing is a major priority for Beijing in rebalancing the world's No. 2 economy. But what's done is done. Shares of PDD ⁇ ⁇ wiped out its market value of $55 billion in a record decline. Its closest competitors Alibaba Group Holding Ltd. and JD.com Inc. followed suit. %4 lost its value.

Founded in 2014 by former Google engineer Colin Huang, the company has combined low prices with aggressive rural expansion and game-like elements on its platform to grab market share from Alibaba and JD ⁇ in recent years. He turned this formula into the global e-commerce bargaining app Temu ⁇ , which he launched during the Super Bowl in 2023. Temu, which has become a Shein-like shopping phenomenon, has been one of ABD ⁇ 's most downloaded apps for some time.

This increased the market value of PDD ⁇ by six times from the bottom level in post-Covid 2022, making Huang ⁇ the richest person in Çin ⁇ this month. Huang, however, held the title for just 18 days until Monday's sales. China's less affluent consumers outside its flashy megacities provided the bulk of PDD ⁇ 's success. They are now a source of great uncertainty.

Consumption, the main driver of the economy, weakened this year after a recovery in post-Covid reopening spending last year. In the face of widespread job and salary cuts, as well as falling property prices, Chinese consumers have become more cautious in their spending, leading to price wars in sectors such as cars. Chang Shu and Eric Zhu of Bloomberg Economics, China's e-commerce companies now face a problem that even hard price cuts can't solve: He was a weak consumer, he wrote. From a macroeconomic point of view, the decline in PDD shares points to an important point: Slowing revenue increases and damaged confidence are suppressing consumption. ⁇

Retail sales in the first seven months of 2024 %a little over 3 ⁇ , which was recorded in the pre-pandemic period. %It's much worse than growing above 8 ⁇ . According to a central bank survey in the second quarter, residents' confidence in their future income fell to its worst level since the end of 2022, one of the peak periods of Covid lockdowns. Almost half of the residents surveyed said employment was gloomy and difficult, the highest rate since the end of 2022. Almost two-thirds of those surveyed said they were willing to save more, hovering close to an all-time high recorded last year.

Lei signaled a fundamental shift in consumer behavior, moving away from cheap products that have increased revenue since its inception. In the earnings call, consumers make more careful decisions to balance quality and value. ⁇ In response, we have cooperated with high-quality brands and manufacturers to create customized products that meet these different demands. ⁇

For some investors, PDD executives were just trying to keep expectations from spiraling out of control. After all, as the company does in all quarters except for one. %It may be unreasonable to expect it to continue to grow above 50 ⁇ . Wall Street thought PDD would nearly double its revenue in the June quarter. Comes instead is up. On Monday, executives said they would make large investments to capitalize on future opportunities.

Brock Silvers, general manager of private equity firm Kaiyuan Capital ⁇ , said ⁇ PDD shows that reality will always show itself again ⁇ . In the current environment, the most prudent course of action is not to be exposed to surprises. It is better to announce bad news in advance than to risk being blamed for a later, greater collapse.

In the long run, a lot depends on the job market and how Beijing will drive the economy.

Officials urged public economic enterprises to increase recruitment and vocational training by trying to provide adequate numbers of jobs, even if the economy slows down. But authorities have refrained from providing more direct assistance to consumers, but many economists have called for cash subsidies or consumption checks, at least for low-income groups. They also refrained from taking measures to support the wage increase needed to encourage further spending. Regulatory pressures in a number of industries, from private tutoring to finance, have also made the job market worse over the past few years.

For now, many investors are confident that PDD ⁇ will at least surpass its peers in a turbulent economy. The results of PDD ⁇ mean ⁇ weak consumption and intense competition. According to Morgan Stanley analysts Eddy Wang and Kathy Zhu ⁇ , the management's comments that long-term profitability will decrease are too conservative for us. ⁇ We believe that ⁇ PDD ⁇ is the only Chinese e-commerce player that will outperform growth in the industry. ⁇

Additional tax response from China to Canada

by the Logistics TransportIn the Category: Logistics

In a statement, China's Commerce Ministry said tariff increases and other restrictive measures decided by the Canadian government were contrary to World Trade Organization (WTO) rules.

Emphasizing that the development of China's electric vehicles and other industries is based on comparative advantages and open competition, contributing to the global fight against climate change and green transformation, the statement claimed that Canada defends free trade and a multilateral exchange system based on WTO rules, but clearly violates these rules and imposes additional tariffs by blindly monitoring some countries.

The statement underlined that the behavior of the Canadian government is an example of ⁇ typical commercial protectionism.

This move will undermine the stability of global industry and supply chains, undermine the global economic system, economic and commercial rules, negatively affect the economic and commercial relations of China and Canada, harming the interests of companies of both countries, the welfare of Canadian consumers, the green transformation of Canada and global efforts to combat climate change.

In the statement, which stated that Çin ⁇ will take all necessary measures to protect the legitimate rights and interests of its own companies, it was called on the Canadian side to correct their wrong practices immediately.

Canada's government, headed by Prime Minister Justin Trudeau, has announced that it will impose a tariff of 100 percent on electric vehicles imported from China from October 1, and 25 percent on aluminum and steel products from October 15.

Canada had thus set tariffs on the products in question at the same rate as the United States.

Demand drops will bring oil prices down

by the Logistics TransportIn the Category: Logistics

Brent oil, which was last recorded as $80.4 on Thursday last week, has not reached the same level for the last six sessions in line with weak economic data from the world's largest oil importer China and the largest oil consumer USA.

According to data released last week in China, new home prices continued their 14-month decline series, while in July the year-on-year decline was 4.9 percent.

In addition, the country's industrial production increased by 5.1 percent year-on-year, falling below projected levels, while the unemployment rate remained above expectations at 5.2 percent.

In addition, weak labor data from the U.S. reinforced forecasts of low demand from China, supporting concerns about economic growth.

The U.S. Department of Labor revised non-agricultural employment data for the 12-month period up to March 2024. According to the revision, employment in the U.S. increased by 818,000 less than previously announced during the period in question.

The number of people who applied for unemployment benefits for the first time in the country increased to 232 thousand in the week ending August 17, while the number of ongoing unemployment benefits applications increased by 4 thousand people in the week ending August 10 to 1 million 863 thousand.

DATA FEEDS REQUEST WORRIED

The data supported concerns about countries' economic growth and suppressed prices, fueling market players' demand concerns.

On the other hand, the possibility of a ceasefire in the Middle East, where most of the global oil reserves are located, eased the supply concerns in the markets.

In line with all these developments, Brent oil, which rose to $81.92 last week, could not hold at these levels and closed the week at $79.1.

The price of Brent oil, which fell to $75.7 on Wednesday, lost 1.3 percent on the same day.

After Fed Chairman Powell said in his speech at the Jackson Hole Economic Policy Symposium that it was time to adjust monetary policy, prices rose 2.1 percent to $78.3 a week, although they tended to recover below $80.

China's lower-than-expected oil demand is an important focus for the market
Julien Mathonniere, Petroleum Markets Economist at U.S.-based energy information company Energy Intelligence Group, told the AA correspondent that there was more than one reason for the fall in oil prices.

Mathonniere stated that the weak demand forecast from Çin ⁇ is the most important factor among these reasons, adding that ⁇ China ⁇ 's below-expected oil demand is an important focus for the market, especially considering that the Organization of Petroleum Exporting Countries (OPEC) has revised down the 2024 global demand growth forecast in line with the weak demand forecasts in the country. ⁇ said.

On the other hand, Mathonniere pointed out that the reduction of gasoline and diesel production by refineries operating in China in July compared to the same period last year also had an impact on prices.

⁇ The fact that this decrease in production took place in China, the world's largest oil importer, in July, which is expected to increase the demand for these products worldwide, caused the prices to fluctuate by reinforcing the expectations that the demand for transportation fuels in the country will increase from now on. ⁇

NO INCREASE OF REQUEST EXPECTED IN CHINA

Contrary to forecasts, there was no significant increase in demand in China this year, Mathonniere said, adding that the country's oil demand fell by 284,000 barrels per day year-on-year in the second quarter, reflecting weak industrial activity in China and the unstable private sector. While Brent oil is currently trading in October barrels, the likelihood that the country will meet expectations is becoming increasingly questionable.

Mathonniere pointed out that another reason for the decline was concerns about the difference between the calculated amount and the actual amount in oil storage facilities, transportation or sales transactions, ⁇ Missing barrels returned this year. Market players suggest that supply is under-measured or demand is overcounted. This disturbs the market players and the market reacts to this disturbance at low prices.

Mathonniere stressed that the impact of the resurgent ceasefire negotiations in the Middle East on oil prices was limited, adding that prospects for reconciliation in the region were insufficient to reduce the risk premium on prices.

Emphasizing that the risk premium on prices has long since melted, Mathonniere said that while the Middle East will continue to affect prices in the background, it is no longer the main focus for market players.

PRICES MUST RISE WITHOUT INCREASE OF REQUEST IN CHINA

Mathonniere pointed out that unless there is an increase in China's oil demand in the future, it is unlikely that prices will rise.

It is difficult to predict how much further prices will fall, but there is an interesting theory that the market may try to force OPEC to take action by bringing prices down. This could cause the group to stop reversing cuts in the fourth quarter. While it's a bit far-fetched to assume that the market can make such a concerted effort to bring prices down, the fall in prices will certainly cause the group to reconsider reversing cuts as the year draws to a close.

The market focused on the decision to come out of the US Central Bank to find direction
Independent oil market analyst Gaurav Sharma also stated that oil prices could rise if the US Central Bank cut interest rates in September, and I think the market is focused on the decisions of the US Central Bank to find direction. If a rate cut is announced in September, it may be possible for prices to show a positive reaction in crude oil futures, but the weakness in the market is likely to continue until this date.

Stating that uncertainties regarding oil demand in China put pressure on crude oil prices, Sharma said, "In recent days, we have observed that industrial production in China has slowed, unemployment has increased and housing prices have fallen. In particular, many market forecasters, such as the International Energy Agency (IEA) and OPEC, predict that Chinese demand will be lower in 2024 and 2025.

Sharma pointed out that the impact of geopolitical developments in the Middle East on the oil market is limited, while geopolitical developments in the Middle East are important, but the impact of geopolitical factors on crude oil prices is limited when oil demand remains weak. This is currently the case, especially due to the increased supply of non-OPEC crude oil.

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From the source: AA

Putin ⁇ den ⁇ Russia-China joint plan ⁇ announcement

by the Logistics TransportIn the Category: Logistics

Putin met with Chinese Prime Minister Li Chiang at the Kremlin Palace in Moscow.

Putin, who stated that progress has been achieved in the agreements reached after his meeting with Chinese President Xi Jinping in Beijing, said that he expects Xi to attend the BRICS summit to be held in Kazan this year.

Pointing out that many agreements were signed within the scope of Li ⁇ 's visit to Moscow, Putin said, ⁇ We are glad to see you. With the contributions of our Chinese colleagues, our commercial relations are developing and progressing successfully. There are large-scale joint plans, economic and humanitarian projects between our countries that will last for many years. ⁇

Speaking at the meeting, Li said that Russia's economy grew by 4.7 percent in the first half of this year, pointing out that Russia has shown stable economic growth in 12 years under Putin's leadership.

Emphasizing that the relations between Russia and China have reached an unprecedented level, Li said, ⁇ We are ready to implement the agreements we have reached with you at the highest level and to continuously expand this cooperation. ⁇

Li also met with Russian Prime Minister Mikhail Mishustin today as part of his visit to Moscow, 29. He attended the meeting of the Heads of Government of Russia-China.

After the meeting, some agreements were signed between the two countries in areas such as energy, logistics, customs, education and chemistry.

Diplomatic and economic relations between Russia and China came to the fore especially after the Ukraine war. The trade volume of the two countries increased by 26.3 percent last year compared to the previous year and reached 240.1 billion dollars.
AA