China Prepares for Economic Shocks Amid US Tariff Anticipation

Chinese Premier Li Qiang proclaimed the country’s readiness for potential economic shocks as US tariffs are expected. During the China Development Forum, he called for increased market openness amid economic uncertainty. Key business executives attended, indicating China’s efforts to stabilize foreign investments. Additionally, CPC Corp is pursuing LNG opportunities in Alaska, while Foxconn anticipates growth in AI server revenues.

Chinese Premier Li Qiang has asserted that China is preparing for unforeseen economic shocks, particularly with the impending announcement of new US tariffs. During the China Development Forum in Beijing, he emphasized the necessity for countries to enhance market openness amid increasing economic fragmentation. Li remarked, “Instability and uncertainty are on the upswing. At this time, I think it is even more important for each of our countries to open up markets more,” highlighting the need for resource sharing among businesses globally.

Among the notable attendees at the forum are prominent executives such as Tim Cook of Apple Inc. and Cristina Amon of Qualcomm Inc. Reports suggest arrangements for these business leaders to meet Chinese President Xi Jinping. US Senator Steve Daines recently engaged with Chinese Vice Premier He Lifeng and Li Qiang, marking significant bilateral interactions since the last US administration.

Li reaffirmed commitment from China’s central bank to implement timely interest rate reductions and adjust the reserve requirement ratio as needed, demonstrating a willingness to bolster economic stability. His statements arise amid efforts to attract foreign investments, which have significantly decreased over the past year, reaching the lowest levels in over thirty years.

Standard Chartered’s CEO Bill Winters noted signs of renewed interest from international investors returning to China, despite some sluggishness in consumer credit. The China Development Forum, established in 2000, aims to facilitate high-level dialogue and has seen evolving engagements between Chinese officials and global business leaders to improve perceptions of China’s economy.

In separate news, the state-run CPC Corp, Taiwan, signed a letter of intent with Alaska Gasline Development Corp to explore liquefied natural gas procurement and investments in the Alaska LNG project. This initiative is intended to secure reliable energy resources for Taiwan as the project aims to export substantial quantities of LNG beginning in 2031.

Further, Hon Hai Precision Industry Co, also known as Foxconn Technology Group, anticipates server revenue may soon surpass that of its iPhones, focusing heavily on artificial intelligence this year. Chairman Young Liu stated that the advancements in AI applications are significantly driving demand for AI-related products, asserting the company’s commitment to capitalizing on this growth.

Nvidia Corp is expecting critical developments at its annual GPU Technology Conference, with CEO Jensen Huang’s keynote speech anticipated to address concerns regarding sales figures. Following ongoing interest from investors, Nvidia’s Taiwanese suppliers showed positive trends amid hopes of showcasing cutting-edge technologies.

In summary, China is gearing up to face potential economic challenges as US tariffs loom, with Premier Li Qiang advocating for enhanced global market openings. Moscow’s efforts to attract international business investments are ongoing, signified by the participation of notable executives at the recent forum. Additionally, developments in Taiwan’s energy procurement and Foxconn’s aspirations within the AI domain signal broader trends in addressing economic growth and resource acquisition in Asia.

Original Source: www.taipeitimes.com