International News 22/08
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PwC leaves big client, Bank of China
PwC, previously China's foremost audit firm, has lost its largest mainland client, Bank of China. Despite Bank of China's previous intention to reappoint PwC as its auditor for 2024, the bank has now appointed EY as its auditor instead. The decision is subject to shareholder approval. In the previous financial year, Bank of China paid PwC 193 million yuan in audit fees, which represents a greater sum than the combined fees of the next three largest domestic clients that have also terminated their relationship with PwC. In recent months, at least 50 Chinese companies, including state-owned enterprises and financial institutions, have terminated their relationship with PwC as their auditor. This follows an investigation by Chinese authorities into PwC's audit of Evergrande, which is accused of a $78 billion fraud. It is anticipated that the investigation will result in significant financial penalties for PwC. PwC previously served as auditor for approximately 110 companies listed on the mainland.
https://internasional.kontan.co.id/news/pwc-ditinggalkan-klien-besarnya-bank-of-china
Trump to revoke tax breaks for electric vehicles in the US
During his election campaign, Donald Trump stated that he would revoke the $7,500 tax incentive for the purchase of electric vehicles. Furthermore, he stated his intention to appoint Elon Musk, CEO of Tesla, as an advisor, citing Musk's intelligence and brilliance as key reasons for this decision. Last month, Mr. Musk publicly expressed his support for Mr. Trump in the US presidential election. However, Tesla has not yet offered any comment on this announcement. If elected, Trump could reverse the Treasury Department rules that have made it easier for automakers to utilise the tax credit or request that Congress repeal it in its entirety. Despite his support for electric vehicles, Mr. Trump also expressed his support for petrol cars and hybrids. He stated that he would repeal the electric vehicle tax break and the Biden administration's rules on the matter.
https://internasional.kontan.co.id/news/trump-bakal-cabut-keringanan-pajak-kendaraan-listrik-di-as
Chinese Biodiesel Producers Hit with Temporary Anti-Dumping Tariff of Up to 36.4% in EU
The European Union's decision to impose temporary anti-dumping tariffs ranging from 12.8% to 36.4% on Chinese biodiesel, effective from 23 August, will present challenges for producers in China. This move will affect over 40 companies, including major players such as Zhejiang Jiaao, Henan Junheng, and Longyan Zhuoyue Group, who generated $2.3 billion in revenue from biodiesel exports to Europe last year. Chinese biodiesel exports to the EU have already experienced a significant decline since mid-2023 due to investigations by European authorities, with volumes dropping by 51% in H1 2023 compared to the same period last year. In response, Chinese biodiesel producers are now exploring new markets in Asia to overcome this situation. The Netherlands is currently the largest importer of Chinese biodiesel, followed by Belgium and Spain.