Aurelia Butler

Standard DigitalWeekend Print + Standard Digitalwasnow $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More

Habeck’s visit to China is the first by a senior European official since Brussels proposed hefty duties on imports of Chinese-made electric vehicles (EVs) to combat what the EU considers excessive subsidies. China warned on Friday ahead of his arrival that escalating frictions with the EU over EVs could trigger a trade war.”It is important to understand that these are not punitive tariffs,” Habeck said in the first plenary session of a climate and transformation dialogue.Countries such as the U.S., Brazil and Turkey had used punitive tariffs, but not the EU, the economy minister said. “Europe does things differently.” Habeck said that for nine months, the European Commission had examined in great detail whether Chinese companies had benefited unfairly from subsidies. Any countervailing duty measure that results from the EU review “is not a punishment”, he said, adding that such measures were meant to compensate for the advantages granted to Chinese companies by Beijing.”Common, equal standards for market access should be achieved,” Habeck said.Meeting Zheng Shanjie, chairman of China’s National Development and Reform Commission, Habeck said the proposed EU tariffs were intended to level the playing field with China.Zheng responded: “We will do everything to protect Chinese companies.”Proposed EU import duties on Chinese-made EVs would hurt both sides, Zheng added. He told Habeck he hoped Germany would demonstrate leadership within the EU and “do the correct thing”.He also denied the accusations of unfair subsidies, saying the development of China’s new energy industry was the result of comprehensive advantages in technology, market and industry chains, fostered in fierce competition. The industry growth “is the result of competition, rather than subsidies, let alone unfair competition,” Zheng said during the meeting. The EU provisional duties are set to apply by July 4, with the investigation set to continue until Nov. 2, when definitive duties, typically for five years, could be imposed.Habeck told Chinese officials the conclusions of the EU report should be discussed. “It’s important now to take the opportunity that the report provides seriously and to talk or negotiate,” Habeck said. After his meeting with Zheng, Habeck spoke with Chinese Commerce Minister Wang Wentao, who said he would discuss the tariffs with EU Commissioner Valdis Dombrovskis on Saturday evening via videoconference.CLIMATE DIALOGUEAlthough the trade tensions were a key topic to be discussed, the goal of the meeting was to deepen cooperation between both industrialised nations for the green transition. This was the first plenary session of the climate and transformation dialogue after Germany and China signed a memorandum of understanding in June of last year for cooperation on climate change and the green transition.The countries acknowledged they had a special responsibility to prevent global warming of 1.5 degrees Celsius (2.7 Fahrenheit) above pre-industrial temperatures, a level regarded by scientists as crucial to preventing the most severe consequences. China installed almost 350 gigawatts (GW) of new renewable capacity in 2023, more than half the global total, and if the world’s second-biggest economy maintains this pace it will likely exceed its 2030 target this year, a report published in June by the International Energy Agency (IEA) showed.While Habeck praised the expansion of renewable energy in China, he noted that it is important not to look only at the expansion of renewables, but also the overall CO2 emissions.Coal still accounted for nearly 60% of China’s electricity supply in 2023. “China has a coal-based energy mix,” Zheng said.China, India and Indonesia, are responsible for almost 75% of the global total coal burned, as governments tend to prioritise energy security, availability and cost over the amount of carbon emissions.Zheng said China was building coal-fired power plants as a security measure. “I still believe that the enormous expansion of coal power can be done differently if one considers the implication of renewables in the system,” Habeck replied. More

Standard DigitalWeekend Print + Standard Digitalwasnow $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More

The sanctions targeted leadership at the company, including the chief business development officer, chief operating officer, legal officer, corporate communications chief and others. “Today’s action against the leadership of Kaspersky Lab underscores our commitment to ensure the integrity of our cyber domain and to protect our citizens against malicious cyber threats,” Treasury Under Secretary Brian Nelson said in a statement.A Kaspersky spokesperson described the move as “unjustified and baseless,” saying it would not affect the company’s “resilience” since it does not target the parent or subsidiary companies or its chief executive, Eugene Kaspersky.The company denied any ties to any government or any links between the designated officials and Russian military or intelligence authorities. The moves show the Biden administration is trying to stamp out any risks of Russian cyberattacks stemming from Kaspersky software and keep squeezing Moscow as its war effort in Ukraine has regained momentum and the United States has run low on sanctions it can impose on Russia.AO Kaspersky is one of two Russian units of Kaspersky Lab placed on a Commerce trade-restriction list on Thursday for allegedly cooperating with Russian military intelligence to support Moscow’s cyber-intelligence goals.That move was coupled on Thursday with an unprecedented ban on sales, resales and software updates for Kaspersky products in the United States starting Sept. 29. U.S. authorities say the software poses serious risks, citing Russia’s influence over the company, the software’s privileged access to a computer’s systems which could allow it to steal sensitive information from American computers, and its ability to install malware and withhold critical updates.The designation announced Friday prohibits American companies or citizens from trading or conducting financial transactions with the sanctioned executives and freezes assets held in the United States. More

WASHINGTON/NEW YORK(Reuters) -The United States on Friday issued draft rules for banning or requiring notification of certain investments in artificial intelligence and other technology sectors in China that could threaten U.S. national security.The U.S. Treasury Department published the proposed rules and a raft of exceptions after an initial comment period following an executive order signed by President Joe Biden last August. The rules put the onus on U.S. individuals and companies to determine which transactions will be restricted or banned.Biden’s executive order, which directed regulation of certain U.S. investments in semiconductors and microelectronics, quantum computing and artificial intelligence, is part of a broader push to prevent U.S. know-how from helping the Chinese to develop sophisticated technology and dominate global markets.The U.S. is on track to implement regulations by the end of the year as anticipated. Public comments on the proposed rules will be accepted until Aug. 4.”This proposed rule advances our national security by preventing the many benefits certain U.S. investments provide – beyond just capital – from supporting the development of sensitive technologies in countries that may use them to threaten our national security,” said Treasury Assistant Secretary for Investment Security Paul Rosen.Treasury said the new rules were intended to implement “a narrow and targeted national security program” focused on certain outbound investments in countries of concern.Treasury had mapped out the contours of the proposed rules in August. The Treasury Department on Friday included additional exceptions, such as  for transactions deemed to be in the U.S. national interest.The proposed rules would ban transactions in AI for certain end uses, and involving systems trained in using a specified quantity of computing power, but would also require notification of transactions related to the development of AI systems or semiconductors not otherwise prohibited.FOCUS ON CHINA, MACAU AND HONG KONGOther exceptions would apply to publicly traded securities, such as index funds or mutual funds; certain limited partnership investments; buyouts of country-of-concern ownership; transactions between a U.S. parent company and a majority-controlled subsidiary; binding commitments that pre-date the order; and certain syndicated debt financings.Certain third-country transactions determined to be addressing national security concerns, or in which the third country adequately addressed the national security concerns, could also be exempted, Treasury said.The order focuses initially on China, Macau and Hong Kong, but U.S. officials have said it could be widened later.Former Treasury official Laura Black, a lawyer at Akin Gump in Washington, said Treasury was attempting to define the scope of the rule as narrowly as possible, but it would require increased vigilance by companies seeking to invest in China.”U.S. investors will need to engage in more extensive due diligence when making investments in China or investments involving Chinese companies that operate in the covered sectors,” she said.Black said Treasury’s proposed rules were keeping U.S.-managed private equity and venture capital funds in the cross-hairs, as well as some U.S. limited partners’ investments in foreign managed funds and convertible debt.Certain Chinese subsidiaries and parents will be covered under the rule, which would also prohibit some investments by U.S. companies in third countries, she added.Besides equity investments, joint ventures and greenfield projects, default debt also could be captured when it becomes equity.The regulations track restrictions on exporting certain technology to China, such as those barring shipment of certain advanced semiconductors.The goal is to prevent U.S. funds from helping China develop its own capabilities in those areas to modernize its military.Those who violate the rules could be subject to both criminal and civil penalties, and investments could be unwound.   Treasury said it had engaged with U.S. allies and partners about the goals of the investment restrictions, and noted that the European Commission and United Kingdom had begun to consider whether and how to address outbound investment risks. More

“The Fed can cut rates but doesn’t have to… yet,” Jefferies said in a Friday note, pointing to underlying strength in the economy suggesting that no accommodation from the Fed is needed. “The risk of restoking the flames of inflation are too great to warrant pre-emptive rate cuts,” it added. The resilience in the U.S. economy has caught by many surprise, Jefferies admits as it ditched its recession call after pushing it back several times. But while there are signs of slowing growth, Jefferies doesn’t believe that the risks of an outright recession have risen materially, though persists with its call for one cut this year either in November or December.The call for one cut matches that of the Fed’s. During the June FOMC meeting, voting Fed members cut their outlook for rate cuts from three this year to just one amid expectations for inflation to remain higher than previously expected.   But market consensus is currently looking for a cut as soon as September, with the odds at about 61%, according to Investing.com’s Fed Rate Monitor Tool.Beyond 2024, however, there is hope for steeper cuts as the Fed’s fight against inflation could get a helping hand from improved productivity, Jefferies says, at a time when labor turnover is easing, suggesting that workers aren’t as willing to switch jobs for higher pay as they may have been in the past.If the inflation relief coming from higher productivity manifests, Jefferies estimates that “there could be more room for a few more cuts late in 2025 or in 2026.” More