Aurelia Butler

Top US lawmakers are urging the Biden administration to put Chinese semiconductor company Yangtze Memory Technologies Co on a blacklist for allegedly violating export controls by supplying Huawei. Democratic Senate majority leader Chuck Schumer told the Financial Times that he was concerned about a report, obtained by the FT, that showed YMTC has provided Nand memory chips for the Mate Xs 2, the new flagship foldable phone from Huawei, the Chinese telecoms equipment giant.“This report is extremely troubling and further underscores the need for the administration to act swiftly to add YMTC to the entity list,” Schumer said, in a reference to the commerce department blacklist that effectively bars US companies from selling technology to groups on the list.YMTC is one of many Chinese technology companies to have come under scrutiny in the US over security concerns. Washington is also implementing a range of measures to boost the US chip industry while making it harder for China to gain access to technology, particularly for cutting-edge chips. According to the report from IP Research Group, a consultancy that analyses electronic devices, YMTC is providing Huawei with chips for the phone, suggesting a possible violation of the US Foreign Direct Product Rule.The rule, introduced by the Trump administration in 2020, bars companies from supplying Huawei with technology that is made in America.Senator Mark Warner and Senator Marco Rubio — the Democratic chair and Republican vice-chair of the Senate intelligence committee, respectively — also supported adding YMTC to the entity list. Their call for action was joined by Michael McCaul, the top Republican on the House foreign affairs committee.“It has been clear for some time now that YMTC is a bad actor — and a key part of the Chinese Communist party’s goal of shifting control of global microelectronics to the PRC [People’s Republic of China]” Warner said. “It’s long past time to act.”The White House has described YMTC as a Chinese “national champion”. US lawmakers and officials are also concerned that as YMTC produces more advanced chips, it will dump them at below-market prices, putting pressure on US, European and other Asian manufacturers.“Make no mistake: when it comes to enriching the Chinese Communist party, what Huawei does for phones, YMTC does for memory chips,” Rubio told the FT. “It’s no surprise the two Chinese companies continue to break US law by partnering together.”Rubio added: “The longer that President Biden drags his feet in recognising this, the more it signals to greedy corporations that it’s OK to do business with them and other Beijing-directed firms.”The FT reported in April that the commerce department was examining claims that YMTC had supplied memory chips to Huawei for another phone.“This report closes down any question that YMTC is not violating US export controls,” McCaul said on Tuesday. “This is a problem that could be solved with the stroke of a pen. Why is [commerce secretary Gina] Raimondo ignoring this problem?”

A commerce department official declined to comment on YMTC, but said the Bureau of Industry and Security was “conducting a review of existing policies related to China and will potentially seek to employ a variety of legal, regulatory, and, when relevant, enforcement tools to keep advanced technologies out of the wrong hands”.US lawmakers have also put pressure on Apple over YMTC, after the iPhone maker told the FT it was considering procuring memory chips from the Wuhan-based company.To prove that YMTC has violated the FDPR, the US would have to show that it knew its chips were destined for Huawei, which might not be the case if they were sold through an intermediary.But one person familiar with an analysis of the Mate Xs 2 said it contained Huawei-produced components that would require the phone manufacturer to deal directly with YMTC in order to tailor the chips for the foldable smartphone.Huawei declined to comment. YMTC did not immediately respond to a request for comment. Follow Demetri Sevastopulo on Twitter More

MANILA (Reuters) – The Asian Development Bank (ADB) on Wednesday cut its growth forecasts for developing Asia for 2022 and 2023 amid mounting risks from increased central bank monetary tightening, the fallout from the war in Ukraine and COVID-19 lockdowns in China.The ADB now expects the area’s combined economy, which includes China and India, to grow 4.3% this year, after previously trimming the forecast to 4.6% in July from 5.2% in April.For 2023, the ADB expects the region’s economy to expand 4.9%, slower than the April and July forecasts of 5.3% and 5.2%, respectively, it said in the September edition of its flagship Asian Development Outlook report. “Since the April Asian Development Outlook, various headwinds have strengthened,” said ADB Chief Economist Albert Park.”More aggressive tightening by the U.S. Federal Reserve and other central banks is denting global demand and rattling financial markets.”A significant global economic downturn would severely undermine demand for the region’s exports, he warned.China’s economy will likely expand 3.3% this year, a further step down after previously trimming the forecast to 4.0% from 5.0% in April. The ADB expects the world’s second-largest economy to grow 4.5% next year, slower than a previous estimate of 4.8%.The outlook for the sub-regions this year remained mixed, with Southeast Asia and Central Asia expected to grow faster than previously projected at 5.1% and 3.9%, respectively. The ADB, however, kept its growth forecast for South Asia at 6.5%, despite a lower growth estimate for India and an economic crisis in Sri Lanka.The Manila-based lender has at the same time raised its inflation forecasts in the region, as supply disruptions continue to boost food and fuel prices.Average inflation in developing Asia this year is now expected to hit 4.5%, up from April and July forecasts of 3.7% and 4.2%, respectively. For 2023, inflation is seen hitting 4.0%, compared with projections of 3.1% in April and 3.5% in July.GDP GROWTH 2021 2022 2022 2022 2023 2023 2023 APR JULY SEPT APR JULY SEPT Central Asia 5.7 3.6 3.8 3.9 4.0 4.1 4.2 East Asia 7.7 4.7 3.8 3.2 4.5 4.5 4.2 China 8.1 5.0 4.0 3.3 4.8 4.8 4.5 South Asia 8.1 7.0 6.5 6.5 7.4 7.1 6.5 India 8.7 7.5 7.2 7.0 8.0 7.8 7.2 South East Asia 3.3 4.9 5.0 5.1 5.2 5.2 5.0 Indonesia 3.7 5.0 5.2 5.4 5.2 5.3 5.0 Malaysia 3.1 6.0 5.8 6.0 5.4 5.1 4.7 Myanmar -5.9 -0.3 n/a 2.0 2.6 n/a 2.6 Philippines 5.7 6.0 6.5 6.5 6.3 6.3 6.3 Singapore 7.6 4.3 3.9 3.7 3.2 3.2 3.0 Thailand 1.5 3.0 2.9 2.9 4.5 4.2 4.2 Vietnam 2.6 6.5 6.5 6.5 6.7 6.7 6.7 The Pacific -1.5 3.9 4.7 4.7 5.4 5.4 5.5 Developing Asia 7.0 5.2 4.6 4.3 5.3 5.2 4.9 INFLATION APR JULY SEPT APR JULY SEPT Central Asia 8.9 8.8 11.3 11.5 7.1 8.1 8.5 East Asia 1.1 2.4 2.3 2.5 2.0 2.1 2.5 China 0.9 2.3 2.1 2.3 2.0 2.0 2.5 South Asia 5.8 6.5 7.8 8.1 5.5 6.6 7.4 India 5.5 5.8 6.7 6.7 5.0 5.8 5.8 South East Asia 2.0 3.7 4.7 5.2 3.1 3.4 4.1 Indonesia 1.6 3.6 4.0 4.6 3.0 3.3 5.1 Malaysia 2.5 3.0 2.7 2.7 2.5 2.5 2.5 Myanmar 3.6 8.0 n/a 16.0 8.5 n/a 8.5 Philippines 3.9 4.2 4.9 5.3 3.5 4.3 4.3 Singapore 2.3 3.0 4.7 5.5 2.3 2.3 2.3 Thailand 1.2 3.3 6.3 6.3 2.2 2.7 2.7 Vietnam 1.8 3.8 3.8 3.8 4.0 4.0 4.0 The Pacific 3.1 5.9 5.9 6.2 4.7 4.7 4.8 Developing Asia 2.5 3.7 4.2 4.5 3.1 3.5 4.0 More

Speaking virtually at an event hosted by the Brazilian Association of Supermarkets (Abras), Guedes highlighted efficiency gains with the digitization of public services, and noted that the current administration has not replaced many retired public servants. “We will be able to give moderate salary increases and based on prospective inflation from now on. From now on, we will maintain purchasing power or even increase the purchasing power of salaries,” he said.The government of President Jair Bolsonaro, who seeks reelection in October but trails former leftist President Luiz Inacio Lula da Silva in opinion polls, set aside 14.2 billion reais ($2.76 billion) to finance higher wages for public servants in the 2023 budget bill sent to Congress.The proposal did not specify the adjustment percentage or which public servants and professions were being considered for wage increases. The government has been under intense pressure by public servants for a wage increase as inflation eroded their purchasing power in Latin America’s largest economy.The budget bill projected no gains on minimum wages beyond inflation. During the event, Guedes also said Bolsonaro’s government this year intends to privatize Santos Port – the largest in Latin America – after setting the minimum price of 3.015 billion reais ($586.32 million) for the privatization auction on Tuesday.($1 = 5.1425 reais) More

OTTAWA (Reuters) -Inflation in Canada remains “too high” but is headed in the right direction, a Bank of Canada official said on Tuesday, adding that the central bank will do whatever is needed to bring price increases back to target.Deputy Governor Paul Beaudry, speaking to university students in Waterloo, Ontario, said while some have suggested a recession might be needed to tame climbing prices, the central bank believed it could lower the risk of a hard landing by clearly communicating its intentions.”In August, inflation stood at 7%. While we’re headed in the right direction, that’s still too high,” Beaudry said in prepared remarks provided ahead of the speech. “We will continue to take whatever actions are necessary to restore price stability for households and businesses and to maintain Canadians’ confidence that we can deliver on our mandate of bringing inflation back to 2%,” he added later.Inflation slowed again in August, though both headline and core measures remain far above target. Adding to the pinch for consumers, grocery prices rose at their fastest pace in 41-years.Central banks are concerned people may start to assume inflation will continue to rise faster than target, which could lead to price spirals.While some have argued policymakers need to engineer a recession to avoid this, Beaudry said the bank is working to convince Canadians the current period of high inflation is temporary and it will tame surging prices.”Our messages are designed to cut through the noise,” said Beaudry. “The more effective the Bank can be in its guiding role, the greater the chance of a soft landing – and the lower the risk of a hard landing.”Still, economists said if consumer and business surveys due out next month show inflation has become more entrenched, the Bank of Canada may have to change its tune.”The pace of increases clearly shows that if the central bank has to make a choice between avoiding a recession and controlling inflation, they will choose the latter every time,” said Royce Mendes, head of macro strategy at Desjardins Group, in a note.The Bank of Canada has boosted its policy rate by 300-basis points in six months and earlier this month signaled it was not yet done. Money markets are betting on another 50-bp increase in October to 3.75%.The Canadian dollar was trading 0.8% lower at 1.3360 to the greenback, or 74.85 U.S. cents. More