London (CNN Business)Chinese shoppers bought fewer cars last year as trade tensions and a weaker economy contributed to the first annual sales decline in two decades. The China Passenger Car Association said Wednesday that vehicle sales fell 5.8% in 2018 to 22.4 million vehicles. It's the first annual decline in nearly 20 years, according to state broadcaster CCTV. China is the world's biggest car market, and many global automakers have come to depend on blockbuster sales fueled by Chinese consumers who purchased vehicles as they joined the middle class. But the market became much tougher last year because of a sharp slowdown in China's economy. Growth in 2018 is set to be the weakest since 1990, and 2019 looks even worse. The world's second largest economy is feeling the effects of government attempts to rein in risky lending after a rapid rise in debt levels. Trade tensions with the United States have only made matters worse. Read More General Motors (GM) said Monday it … [Read more...] about Car sales drop in China for the first time in 20 years
Tariff in china
New Delhi (CNN Business)Tesla is slashing prices in China for the second time this year, taking a bigger hit from the country's trade war with the United States in a bid to protect sales. The electric carmaker announced Thursday that it will slash prices of its Model S sedan and Model X SUV by between 12% and 26%, even though higher Chinese tariffs on US autos have made it more expensive to import cars. "We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China," a Tesla (TSLA) spokesperson said in a statement. The basic version of the Model S now costs 782,900 yuan ($113,000) — down from 849,900 yuan ($122,525) — while the most expensive version of the Model X has gone from 1.57 million yuan ($227,000) to around 1.2 million yuan ($171,000). Its cheapest car, the Tesla Model 3, will be launched in China with a starting price of 540,000 yuan ($78,000). Tesla is cutting its prices in China for the second time this … [Read more...] about Tesla is slashing its prices in China again
SAN FRANCISCO — Apple reduced its revenue expectations for the first time in 16 years on Wednesday because of poor iPhone sales in China, an unexpected development that underscored the slowing of China’s economy and raised fears of further turmoil in global markets. Apple’s surprise announcement was the clearest confirmation yet that the Chinese economy is in serious trouble. Beijing’s effort last spring to clamp down on credit, which sparked a slowdown, and an intensifying trade war with the United States have unnerved consumers and businesspeople alike. “Apple is a bellwether,” said Mark Zandi, chief economist at Moody’s Analytics. “The iPhone is something that everyone knows and buys, and if people aren’t buying it, then that’s a pretty good sign they’re having a hard time.” It is not clear whether this is a problem particular to Apple or whether China’s slowing economy will affect other American … [Read more...] about Apple Cuts Revenue Forecast Because of Slow iPhone Sales in China
(CNN)President Donald Trump said Tuesday his administration is open to using the arrest of Huawei chief financial officer Meng Wanzhou as a bargaining chip in ongoing trade negotiations with China. Asked by Reuters in an interview if he would intervene in the case, Trump said, "Whatever's good for this country, I would do." He continued, "If I think it's good for what will be certainly the largest trade deal ever made -- which is a very important thing -- what's good for national security -- I would certainly intervene if I thought it was necessary." Trump's comments are unlikely to calm growing fury in China amid repeated claims in the country's state-run media that Meng's detention is politically motivated. "The US and Canada are undoubtedly abusing their justice systems ... Washington should not attempt to use its domestic laws as strategic support for its commercial and diplomatic competition," an editorial in state media tabloid Global Times said Wednesday. Read More … [Read more...] about Trump expresses openness to using Huawei CFO as bargaining chip in China trade talks
President Trump has said he started a trade war to create jobs in America. But foreign carmakers that employ thousands of workers in the United States are gauging whether tariffs, the main weapon in that war, may compel them to shift jobs to, of all places, China. Carmakers’ early hopes that congressional Republicans who favor free trade could restrain Mr. Trump have faded. Instead, manufacturers are girding for a protracted period of conflict that will disrupt supply chains and change the companies’ calculations about where to expand and where to cut back. BMW, the largest exporter of cars from the United States, has already moved some production of its popular X3 sport utility vehicle — once made exclusively in Spartanburg, S.C. — to a factory in Shenyang, China. Analysts expect the German automaker to also move some production of its larger X5. By shifting production, BMW can avoid China’s punitive tariffs on cars imported from the United States, which … [Read more...] about Trump’s Trade War May Create New Auto Jobs. In China.