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Good morning. US steel unions have asked President Joe Biden to open a trade investigation into alleged Chinese unfair economic practices in the shipbuilding and maritime logistics sectors.
The United Steelworkers and other unions filed a petition with the US Trade Representative yesterday outlining alleged discriminatory practices that have helped China dominate global shipbuilding, according to people familiar with the move.
The administration has 45 days to decide whether to respond by opening an investigation, and experts said Biden would be unlikely to turn down the request.
“For a Democratic, pro-labour president in an election year, this is a no-brainer,” said Evan Medeiros, a China expert at Georgetown University.
China is likely to become an increasingly political issue as the US election draws near. Today, lawmakers in the House of Representatives are expected to vote on a bill that would ban US app stores from carrying TikTok unless its Chinese owner ByteDance divested the popular video-sharing platform.
An investigation into Chinese shipbuilding will potentially create more tension between Washington and Beijing.
Here are the concerns raised in the petition — and there’s more on this new battleground in the US-China trade war in today’s Big Read.
Here’s what else I’m keeping tabs on today:
Economic data: Russia publishes February consumer price inflation data while the UK releases its January GDP estimate.
Adidas: The company is expected to report an operating profit of €268mn today despite the Yeezy debacle. Read up on CEO Bjørn Gulden, the “chaotic” ex-footballer revamping Adidas.
North Korea: The country’s vice foreign minister wraps up a visit to Mongolia, a rare trip abroad by a North Korean delegation. (Reuters)
Five more top stories
1. Chinese developer Vanke’s bonds have been downgraded by Moody’s in the latest outbreak of stress across the country’s troubled property sector. The company, China’s second-largest developer by sales, in recent weeks has become the focal point of a property slowdown that has piled pressure on policymakers in Beijing as they seek to boost confidence in the country’s economy.
2. US national security adviser Jake Sullivan has warned the Israeli government against “smashing into Rafah” as the Biden administration underlines its opposition to the planned assault on one of Gaza’s biggest cities. Sullivan added that an assault on the southern Gaza city was not necessary in the effort to “crush Hamas”. Here’s the latest on the Israel-Hamas war.
3. US commerce secretary Gina Raimondo has called for boosting the Philippines’s chip sector as Washington seeks to deepen defence co-operation with its oldest Asian ally. The country has 13 so-called back-end semiconductor plants that specialise in assembling, testing and packaging chips manufactured elsewhere. “Let’s double it,” Raimondo said yesterday during a trip to the Philippines.
4. US inflation unexpectedly increased to 3.2 per cent last month, highlighting the challenge faced by the Federal Reserve in the “last mile” of its fight against rising prices. Yesterday’s rise triggered warnings that the Fed may have to wait longer than previously expected before cutting interest rates from their current 23-year high.
5. EU countries are set to agree a new €5bn top-up to a fund used to finance military shipments to Ukraine, while the US managed to scrape together $300mn more in ammunition and artillery for Kyiv. The stop-gap funding indicate western policymakers’ growing fears about Kyiv’s forces no longer being able to hold the line against Russian troops.
Join FT colleagues on March 21 at 20.00 HKT for a subscriber webinar on the Israel-Hamas war, fears of a wider conflict and the chance of a long-term settlement. Register now and put your questions to the panel.
The Big Read
Since Telegram’s founding in 2013, the company’s Russia-born chief executive Pavel Durov has sought to cast the platform as a privacy-orientated alternative to Big Tech platforms, one that is unassailable from government interference. But with 900mn monthly active users, it also attracts disinformation pushers, conspiracy theorists and extremists. As it continues to scale, monetise and prepare for a potential market debut, Telegram will face increasing pressure to tame its dark underbelly.
We’re also reading . . .
Hong Kong: International businesses operating in the city are finding it harder than ever to understand what they need to worry about, and how much, writes Kaye Wiggins.
China’s economy: What is the future of “communist capitalism” in China? Martin Wolf explores whether Xi-ism is killing Deng-ism in his latest column.
Japan’s falling births: Marriage holds the key to reversing population decline but the government cannot play matchmaker, writes Leo Lewis.
Chart of the day
Growing optimism about the world economy and improved corporate earnings is driving stock markets to record highs, prompting analysts to forecast further gains. “It’s like a reset of the risk cycle,” said Evan Brown of UBS Asset Management. “Everyone’s been anticipating a recession for a long time and it hasn’t materialised.”
Take a break from the news
Two sharp memoirs give a glimpse of the steep rewards — and downsides — of working at the summit of the financial sector. “However many times the story of disenchantment and stress is written, people keep on being drawn to Wall Street and the City to make a fortune, or to try,” writes John Gapper in the latest FT Books Essay.
Additional contributions from Irwin Cruz and Gordon Smith
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Source: Economy - ft.com
