New front in US-China trade war

Today's headlines

• Russian President Vladimir Putin said Russia was ready for a nuclear war and could resume testing of a new generation of weapons. Ukraine has stepped up drone attacks on oil refineries in Russia, in what officials say is an effort to further damage the country's economy.

• The British economy returned to growth in January, with the services sector driving GDP growth by 0.2%. The increase boosted expectations that Britain would emerge from recession in the first quarter, providing a much-needed boost to embattled Prime Minister Rishi Sunak.

• Sunak is trying to block the takeover of the Telegraph by Abu Dhabi-backed RedBird IMI, proposing changes to legislation currently before parliament to effectively prevent any foreign ownership or influence or control of a British newspaper.

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Good evening.

TikTok, shipbuilding and the solar industry are the latest flashpoints in the U.S.-China trade dispute, which is quickly rising to the top of the political agenda ahead of the U.S. presidential election in November.

The U.S. House of Representatives voted overwhelmingly today to pass a bill that would ban U.S. app stores from distributing TikTok unless its Chinese owner ByteDance divests the video-sharing platform. President Joe Biden has said he will support the bill, which now heads to the Senate. Supporters believe the app could be used to exploit Americans' data or become a national security risk by allowing backdoors to be built into U.S. networks.

Meanwhile, the U.S. solar industry is furious about cheap Chinese solar panels, which have halved global prices in the past year: a boon for renewable energy developers, but not for domestic manufacturers However, it is a threat as they try to build a local supply chain that suits them. Green transformation.

China doubled its production capacity last year and now produces panels three times global demand, according to the International Energy Agency and Wood Mackenzie. In response, North American manufacturers said they were scaling back expansion plans despite generous incentives under Biden's Inflation Cut Act, a landmark U.S. climate law.

“IRA subsidies are lucrative but still not enough to compete with cheap imports,” one analyst said, adding that “new protectionist measures” were necessary to make U.S. manufacturing more competitive.

The chipmaking industry has been one of the most high-profile examples of rising tensions between the two countries, but the effects are affecting the industry globally. South Korea's Samsung and SK Hynix, the world's leading memory chip manufacturers, have stopped selling second-hand chip manufacturing equipment to avoid violating U.S. export restrictions. The second-hand equipment is stored in warehouses instead of being put on the secondary market.

U.S. help for the Philippines' chip industry is part of Washington's efforts to bolster its economic engagement in military and security partnerships in the region.

However, shipbuilding has emerged as the latest and perhaps most important battleground.

The United Steelworkers union has slammed Beijing's “predatory” trade practices, claiming Chinese shipbuilders benefit from protectionist policies such as state-owned bank loans and tax breaks. Over the past 20 years, the tonnage of commercial ships produced in China has increased from 12% of global merchant ship tonnage to more than 50% by 2023, according to data from a maritime consulting company. It also dominates shipping logistics, making its Login supply chain platform freely available to ports around the world.

As Rana Foroohar's Big Read explains, the case has huge global implications, not only exacerbating trade tensions but also shining a spotlight on Beijing's growing military strength and the massive commercial shipping industry that supports it.

It also raises questions about the United States' ability to reindustrialize strategic areas and continue to police global waterways when the United States no longer has the industrial capacity to build its own ships, Fruhar said.

Need to know: UK and European economies

UK wage growth Economic growth continued to slow in the three months to date, official data showed, confirming the Bank of England's view that inflationary pressures are easing.

U.K. cost of living crisis However, the situation has not gone away, with new figures showing mortgage arrears at a seven-year high and the water consumer watchdog warning that suppliers plan to increase water bills by 70% over the next five years, which will hit most It's 'unaffordable' for families in England and Wales.

UK Competition and Markets Authority is targeting private equity-led businesses veterinary market. The industry has consolidated rapidly over the past decade, and concerns have grown that pet owners may be paying too much for medications.

MPs launch inquiry into health risks of abandonment wales mines An investigation by the Financial Times has highlighted the dangers of hazardous metals leaking into the environment from certain locations.

Brussels to introduce strict rules food packaging France has effectively banned most plastics recycled outside the EU after a last-minute push to change a flagship law.

Need to Know: The Global Economy

US inflation Interest rates unexpectedly rose to 3.2% from 3.1% in February, raising new questions for the Federal Reserve, which will decide next week whether to cut rates to 5.5% from a 23-year high of 5.25%.

HaitiPrime Minister Ariel Henry says he will resign once a transitional council is formed to govern the Caribbean country overrun by street gangs.

Somali pirates The seizure of a Bangladeshi ship carrying coal to the United Arab Emirates highlights the growing risks to commercial shipping as naval forces around the world focus on the Houthi threat in the Red Sea region.

China A series of infrastructure projects in indebted regions are being canceled in an attempt to balance the need to save money with economic growth goals. The future of “communist capitalism” is the subject of chief economic commentator Martin Wolf's latest column, and he tackles the question: Is Xi Jinpingism killing Deng Xiaopingism?

Disagreements between rich and poor countries over sharing pathogen genome data and funding health systems in emergencies are threatening progress in the global fight against the pandemic. pandemic treaty.

Nigeria The country has been hit by a wave of violent food robbery as the economic and security crisis deepens. Food inflation exceeded 35% at the beginning of the year.

Need to know: Business

apple Bowing to a tech crackdown in Brussels, it approved iPhone apps for downloading from developer websites, not just the company's App Store. American technology startups To adapt to the prolonged downturn, they cut stock options for new hires.

British chip designer arm The company launched its first chip for self-driving cars as it seeks to grow beyond its well-known mobile processors. For automakers, electrification and assisted or autonomous driving systems are increasing the importance of software and the chips that run it.

boss zara IndexH&M, the world's largest fashion retailer, reported a strong start to the first quarter after successfully improving profits and prices in 2023. The Spanish company has shifted its focus to more fashionable designs amid a long-running rivalry with Swedish rival H&M.

As we highlighted in Monday's DT, stock market Enjoying some time. A whole “risk reset” is underway as hopes grow that central banks can successfully curb inflation without triggering a recession.

Cathay Pacific Hong Kong airlines posted their highest annual profits since 2010 as demand surged after the end of epidemic restrictions.

worldwide art market The economy will bottom out in 2023, falling 4% to a three-year low of $65 billion, according to a new report, which finds that even the rich “are not immune to damaging financial, social or political changes”.

world of work

japanese worker The biggest wage increase in more than three decades supports the Bank of Japan's case for starting to raise interest rates. Real wages in the country have been stagnant since the late 1990s.

EU ministers approve rules that will help determine employment status of around 28 million people”gig economy” workers, enabling them to enjoy labor rights such as paternity leave and holiday pay.

what to do best communicator Is there anything in common? How important is it to listen better to succeed in the workplace? Listen to the new “Working It” podcast.

some good news

Safe spaces and sponsorship programs are providing vital schooling to displaced children and children in war-affected cities.