International News 13/03
-
US forces ByteDance to sell TikTok shares or face ban
The US House of Representatives Energy and Commerce Committee has unanimously approved legislation requiring ByteDance, the owner of TikTok, to divest from the popular short-video app within six months. Failure to do so would result in TikTok being banned from operating in the US. The 50-0 vote marks a significant step in the US government's efforts to crack down on TikTok, which has around 170 million users in the US. Lawmakers are aiming to pass the bill quickly, with the US House of Representatives potentially approving it in the coming weeks. TikTok has spoken out against the legislation, claiming it is an infringement on Americans' freedom of expression and will harm millions of businesses, artists and creators. Before the vote, lawmakers were briefed on national security concerns related to TikTok's ownership in China.
https://internasional.kontan.co.id/news/amerika-memaksa-bytedance-lepas-saham-tiktok-atau-menghadapi-laranganChina's electric car popularity is starting to worry the US
The United States is becoming increasingly concerned about China's dominance in the electric car market. The US Secretary of Energy, Jennifer Granholm, expressed worry about China's influence on the US industry, particularly in distribution and marketing capabilities. Chinese electric car companies have successfully produced low-priced vehicles, which could pose a threat to major US automakers who have focused on gasoline-powered SUVs. Granholm also mentioned that the US wants to avoid China having a dominant position in the solar panel market, as solar technology was originally invented in the US. However, she expressed confidence that the US can still become a significant player in the electric car sector. Granholm believes that US automakers can lower electric vehicle prices by utilizing incentives from the US Inflation Reduction Act (IRA) and other programs. One example of such incentives is the IRA's $4,000 credit for purchasing a used electric car. Ultimately, Granholm highlighted the need for the US to invest more in order to compete with China.
https://internasional.kontan.co.id/news/popularitas-mobil-listrik-china-mulai-membuat-as-khawatir
In a sign of global trade recovery, China's export-import figures improve at the start of the year
China's export and import trade activity in January-February was better than expected, signalling a positive turn for global trade. This is particularly important for Chinese policymakers as the weak manufacturing sector has been a drag on the country's economy. Customs data showed that China's exports rose 7.1% year-on-year in the two months, beating forecasts for a 1.9% increase. Similarly, imports grew by 3.5%, compared with an expected 1.5%. China's customs agency publishes January and February trade data together to account for distortions caused by the Lunar New Year holiday. Chinese Premier Li Qiang recently announced an ambitious economic growth target of around 5% for 2024 and pledged to change the country's development model, which relies heavily on exports and industrial overcapacity. This positive trade activity comes amid a property crisis and cautious consumer spending in China.
The Malaysian central bank is expected to keep rates on hold, here's why
The Central Bank of Malaysia, or Bank Negara Malaysia (BNM), is expected to maintain its benchmark interest rate at the highest level in five years in order to support the Malaysian currency, which has recently weakened to its lowest level in 26 years. According to a Bloomberg survey of 19 economists, BNM is projected to keep the rate at 3% in its second meeting this year. The ringgit, Malaysia's currency, has been one of the weakest currencies in Asia due to lower interest rates compared to other countries. Malaysia's Second Finance Minister, Amir Hamzah Azizan, has advised against raising interest rates to strengthen the currency, stating that the benchmark rate is meant to maintain price stability and sustainable economic growth. Last year, Southeast Asian economies, including Malaysia, struggled to meet growth forecasts due to slow economic recovery in China, a key trading partner for Malaysia. As a result, analysts have revised their growth forecasts for Malaysia downward.