Economy

The EU has learnt its lesson on China, according to former European trade commissioner Karel De Gucht.The bloc is ramping up pressure on Beijing over its ballooning bilateral trade deficit, and, De Gucht said, its policy must be influenced by the outcome of a previous bout of trade tensions. Back in 2013, De Gucht was investigating alleged Chinese subsidies for solar panel production. The Belgian commissioner was dining with his wife when he got a call from his then-boss, European Commission president José Manuel Barroso. “I just had [then-Chinese premier] Li Keqiang on the line. He is yelling at me, he is very, very mad,” Barroso told him. “OK. Then we should continue with what we are doing,” De Gucht replied.But in retrospect, the resulting antidumping duties imposed in June 2013 were insufficient to save Europe’s solar panel manufacturing sector, De Gucht said. “We were not hard enough. We were not quick enough. And by that time there were no European producers any more,” he told the Financial Times in an interview.It is a mistake the EU is determined not to repeat. This week the commission launched two new anti-dumping investigations into China. The investigations into exports of titanium dioxide and of aerial work platforms for the building maintenance industry follow a probe into alleged Chinese electric vehicle subsidies launched in October. Together with a flurry of other trade cases, the moves add up to an unprecedented push by Brussels for changes in Chinese trade policy and practice that some EU officials say is showing signs of bearing fruit.This time the commission has begun its assessment of subsidies to Chinese electric-vehicle manufacturers before they gain a big foothold in its market.And it is threatening a range of measures across other industries that are intended to widen support from European business and member governments, and to spread the pain of any Chinese retaliation.This month, the commission confirmed it would levy provisional anti-dumping duties on some plastic imports from China after manufacturers of material used in bottles and packaging said they were being driven out of business.Commissioners have threatened to open an anti-subsidy case over wind turbine parts. There is persistent speculation they are examining new measures to protect the much-reduced solar panel sector. And Brussels has accused China of restricting medical device imports.A procession of European commissioners heading to Beijing has pressed Chinese authorities to change their ways.Commission president Ursula von der Leyen, who visited in April, complained this week that Chinese dumping “distorts our market” and that a Beijing summit with President Xi Jinping on December 7-8 must yield results. “China is capable of change,” she said.The bloc, which once relied on traditional — and slow-moving — trade defence techniques involving the World Trade Organization has equipped itself with several new tools in the past three years.They include an anti-coercion instrument that could help it retaliate against countries using trade embargoes over political issues, such as the boycott of Lithuanian exports that China imposed after Vilnius allowed Taiwan to open a representative office there.The EU can also now block investment by companies funded by overseas governments and cut businesses out of procurement contracts if their own domestic market is closed to EU bidders.And it is working on an EU-wide export controls regime. Under US pressure, the Netherlands is stopping exports of high-end chipmaking machines to China. Brussels is pushing member governments — which retain sole power over national security matters — to come up with a joint list of technologies to restrict.EU countries are worried by a widening trade deficit — which doubled in 2022 to almost €400bn, pushed in part by the war with Ukraine that has jacked up energy prices in Europe, sapping its competitiveness.Chinese support for Russia has also raised tensions, said Noah Barkin, senior adviser at consultancy Rhodium Group. “There is a volatile cocktail of issues pushing the EU into a tougher stance,” he said.EU members also worry about China’s dominance of green supply chains, particularly the critical raw materials needed for electric car batteries, and solar and wind energy systems.Beijing recently restricted exports of germanium, gallium and graphite, which western governments viewed as a response to the chip controls.But with its economy slowing and the US blocking Chinese investment and some imports, Beijing needs the EU now more than it did, Barkin said. “China’s economic problems give Europe a degree of leverage and Europe is using its leverage in a way we have not seen before.”Traditionally, the EU’s 27 member states have been divided over China. Some, including Italy, Greece and Hungary, even joined the Belt and Road Initiative, Beijing’s $1tn global infrastructure scheme. Others such as Germany have huge investments and sales in the country.However, one EU official said bloc leaders were now “united in seeing China for what it is”.“There is a feeling that everything is said and now it’s time for the Chinese to show in deeds that they need us,” the official said.Policymakers in Brussels say there are signs Beijing is responding to the pressure.China has condemned the EV anti-subsidy investigation as a “naked protectionist act” and this week criticised the EU’s methodology for the probe, saying it was “not transparent” and “not fair”.But Beijing has also stepped up efforts to court European business, as it tries to counter a slowdown in the Chinese economy. This month, the commerce ministry said it would address many complaints made by the European Chamber of Commerce in China, which recently made more than 1,000 commission-backed recommendations for improving the treatment of foreign-invested enterprises.Chinese companies are already opening battery factories in the EU and Barkin said building EV plants in the bloc could help improve political relations as well as exempting their output from tariffs.Beijing was likely to make more concessions that would help to rebalance trade, but the EU pressure could still backfire, he said. “There is a risk that China overreacts and we enter a tit-for-tat downward spiral.”Additional reporting by Joe Leahy in Beijing More

A spokesperson for Meta, which owns Facebook (NASDAQ:META), said in an emailed statement the company intends to bring the staff closer to the development of core products and technologies.Most of the Responsible AI team members will move to generative AI “and will continue to support relevant cross-Meta efforts on responsible AI development and use,” the statement said.Some members will go to AI infrastructure. “We continue to prioritize and invest in safe and responsible AI development and these changes will allow us to better scale to meet our future needs,” the spokesperson said. The Information first reported the move.In October, the social media giant started rolling out generative artificial intelligence (AI) tools that can create content like image backgrounds and variations of written text for all advertisers.Meta’s portfolio of AI products includes its language model “Llama 2” and an AI chatbot called Meta AI that can generate text responses and photo-realistic images. More

BERLIN (Reuters) – An agreement on how artificial intelligence should be regulated in the future has been reached by Germany, France and Italy, according to a joint paper seen by Reuters, which is expected to accelerate negotiations at the European level. The three governments are in favour of binding voluntary commitments for both large and small AI providers in the European Union. The European Commission, the European Parliament and the EU Council are currently negotiating how the bloc should position itself in this new field.The Parliament presented an “AI Act” in June, with the aim of averting safety risks from AI applications and avoiding discriminatory effects, but without slowing down the innovative power of this new technology in Europe. During the discussions, the European Parliament proposed that the code of conduct should initially only be binding for major AI providers, which are primarily from the U.S. However, the three EU governments have warned against this apparent competitive advantage for smaller European providers. This could lead to less trust in the security of these smaller providers and therefore fewer customers, they said. The rules of conduct and transparency should therefore be binding for everyone, they added.Initially, no sanctions should be imposed, according to the paper. However, if violations of the code of conduct are identified after a certain period of time, a system of sanctions could be set up. In the future, a European authority would monitor compliance with the standards, the paper said. Germany’s Economy Ministry, which is in charge of the topic together with the Ministry of Digital Affairs, said laws and state control should not regulate AI itself, but rather its application. The development of AI models that are not yet in use, or have not yet been launched on the market, should not be regulated separately by the state. The German government is hosting a digital summit in Jena, in the state of Thuringia, on Monday and Tuesday which will include representatives from politics, business and science. Issues surrounding AI will be on the agenda when the German and Italian governments hold talks in Berlin on Wednesday. More

The so-called “San Francisco Principles on Integrating Inclusivity and Sustainability into Trade and Investment Policy” are aimed at considering “economic, social and environmental dimensions in a balanced way” in APEC members’ policies.Here are some of the key elements of the principles, according to a statement issues at the close of the U.S.-hosted APEC leaders’ summit in San Francisco:– Incorporating environmental sustainability and social inclusivity into the development and application of trade and investment policies to support “strong, balanced, secure and inclusive economic growth, positive environmental outcomes and social well-being of our peoples.– Fostering the use of open, transparent, predictable and participatory processes when developing policies. This includes making information available on issues under consideration, and holding public consultations, particularly with small businesses, women, indigenous peoples and other groups.– Strengthening APEC cooperation on trade and investment in environmental goods and services to support the clean energy transition– Deepening the understanding of challenges facing groups with “untapped economic potential” to access trade and investment opportunities.– Strengthening data collection and research on trade and investment policies to monitor economic, environmental and social impacts.But the final language in the San Francisco Principles accounts for differences among the 21 diverse APEC economies that include China, the U.S. and Brunei.”The way to achieve economic inclusion and sustainability for each economy may differ depending on what our societies and what our economies look like,” according to the APEC statement.”Measures should consider economic, social and environmental dimensions in a balanced way, in line with economies’ circumstances, and should not exacerbate inequalities.” More

BOCA CHICA, Texas/NEW YORK (Reuters) -SpaceX’s uncrewed spacecraft Starship, developed to carry astronauts to the moon and beyond, failed in space shortly after lifting off on Saturday, cutting short its second test but making it further than an earlier attempt that ended in an explosion.The two-stage rocketship blasted off from the Elon Musk-owned company’s Starbase launch site near Boca Chica in Texas, helping boost the Starship spacecraft as high as 90 miles (148 km) above ground on a planned 90-minute test mission to space and back.But the rocket’s Super Heavy first stage booster, though it achieved a crucial maneuver to separate with its core Starship stage, exploded over the Gulf of Mexico shortly after detaching, a SpaceX webcast showed.Meanwhile, the core Starship stage boosted further toward space, but a few minutes later a company broadcaster said that SpaceX mission control suddenly lost contact with the vehicle. “We have lost the data from the second stage… we think we may have lost the second stage,” SpaceX engineer and livestream host John Insprucker said. He added that engineers believe an automated flight termination command was triggered to destroy the rocket, though the reason was unclear.About eight minutes into the test mission, a camera view tracking the Starship booster appeared to show an explosion that suggested the vehicle failed at that time. The rocket’s altitude was 91 miles (148 km).The launch was the second attempt to fly Starship mounted atop its towering Super Heavy rocket booster, following an April attempt that ended in explosive failure about four minutes after lift-off.The U.S. Federal Aviation Administration, which oversees commercial launch sites, confirmed a mishap occurred that “resulted in a loss of the vehicle,” adding no injuries or property damage have been reported.The agency said it will oversee a SpaceX-led investigation into the testing failure and will need to approve SpaceX’s plan to prevent it from happening again.The mission’s objective was to get Starship off the ground in Texas and into space just shy of reaching orbit, then plunge through Earth’s atmosphere for a splashdown off Hawaii’s coast. The launch had been scheduled for Friday but was pushed back by a day for a last-minute swap of flight-control hardware.TESTING FAILURESStarship’s failure to meet all of its test objectives could pose a setback for SpaceX. The FAA will need to review the company’s failure investigation and review its application for a new launch license. SpaceX officials have complained that such regulatory reviews take too long.On the other hand, the failure in a program for which SpaceX plans to spend roughly $2 billion this year was in line with the company’s risk-tolerant culture that embraces fast-paced testing and re-testing of prototypes to hasten design and engineering improvements.”More things were successful than in the previous test, including some new capabilities that were significant,” said Carissa Christensen, CEO of space analytics firm BryceTech.”There’s not money and patience for unlimited tests, but for a vehicle that is so different and so big, two, three, four, five tests is not excessive,” Christensen said.At roughly 43 miles (70 km) in altitude, the rocket system executed the crucial maneuver to separate the two stages – something it failed to do in the last test – with the Super Heavy booster intended to plunge into Gulf of Mexico waters while the core Starship booster blasts further to space using its own engines.But the Super Heavy booster blew up moments later, followed by the Starship stage’s own explosion. SpaceX in a post on social media platform X said “success comes from what we learn,” adding that the core Starship stage’s engines “fired for several minutes on its way to space.”A fully successful test would have marked a key step toward achieving SpaceX’s ambition producing a large, multi-purpose, spacecraft capable of sending people and cargo back to the moon later this decade for NASA, and ultimately to Mars.SpaceX’s worker safety culture underpinning its speedy development ethos is facing scrutiny by lawmakers after a Reuters investigation documented hundreds of injuries at the rocket company’s U.S. manufacturing and launch sites.CLOCK IS TICKINGNASA, SpaceX’s primary customer, has a considerable stake in the success of Starship, which the U.S. space agency is counting on to play a central role of landing humans on the moon within the next few years under its human spaceflight program, Artemis, successor to the Apollo missions.NASA chief Bill Nelson, who has made competition with China a core need for speed in Artemis, said Saturday’s Starship test was an “opportunity to learn — then fly again.”Musk – SpaceX’s founder, chief executive and chief engineer – sees Starship as eventually replacing the company’s workhorse Falcon 9 rocket as the centerpiece of its launch business that already lofts most of the world’s satellites and other commercial payloads into space.”The clock is ticking,” said Chad Anderson, a SpaceX investor and managing partner of venture capital firm Space Capital. “NASA has a timeline where they’re trying to get to the moon, and this is their primary vehicle to do it. So SpaceX needs to deliver on a timeline.”Jaret Matthews, CEO of lunar rover startup Astrolab that has booked space on a future Starship flight, toured SpaceX’s Starbase site earlier this year and said he expects the company to swiftly resume tests after the Saturday flight.Though such a pace is expected to be driven largely by the FAA’s review and the extent of Starship’s technical failures.”They have the next number of vehicles already lined up in the factory ready to go,” he said. “I think people will be shocked by the cadence that emerges next year.” More

WASHINGTON (Reuters) – Three U.S. lawmakers are calling for greater scrutiny of worker safety at Elon Musk’s SpaceX following a Reuters investigation that documented hundreds of injuries at the rocket company’s U.S. manufacturing and launch sites.The Nov. 10 Reuters report detailed at least 600 previously unreported workplace injuries since 2014 at SpaceX including crushed limbs, amputations, head injuries and one death. The Reuters report found that injury rates at three major SpaceX industrial facilities in Texas and California far exceeded the average for the space industry. Representative Zoe Lofgren of California, the top Democrat on the House of Representatives Science, Space and Technology Committee, said the report’s findings were “deeply concerning and must be taken very seriously.”The science panel oversees NASA’s budget and the activities of the agency’s contractors.Democratic Representative Mark Takano of California called the report “deeply troubling.” Takano is a member of the House Committee on Education and the Workforce, which oversees worker-safety matters.”These horrific and frequent violations at SpaceX are unacceptable,” Takano added. “Accountability for those harmed is overdue, particularly in light of the federal government’s partnership with the company.”The U.S. space agency NASA has paid SpaceX, whose headquarters are in Hawthorne, California, $11.8 billion to date as a private space contractor.Democratic Representative Donald Norcross of New Jersey, also a member of the education and workforce committee, called the findings “alarming and certainly a cause for concern.””It’s clear that we need to take a closer look and further investigate the facts,” added Norcross, who has pursued inquiries into safety issues at Amazon (NASDAQ:AMZN) Inc warehouses, among other employers.The House is controlled by Republicans.SpaceX did not respond to Reuters questions about the injuries or the remarks by the lawmakers. NASA has not commented on the company’s safety record, but told Reuters it has the option of enforcing contract provisions that require SpaceX to “have a robust and effective safety program and culture.”Lori Garver, a former NASA deputy administrator who oversaw the early years of the agency’s relationship with SpaceX, said the high worker injury rates at SpaceX facilities should be examined by NASA to determine the causes.”It should be a wake-up call to NASA,” added Garver, who called on the agency to “dig into” the issue and “make it better.””They shouldn’t have rates higher than other companies,” Garver said. “That is a problem.”SpaceX’s next-generation spacecraft Starship, developed to carry astronauts to the moon and beyond, was set for blastoff on Saturday for a repeat test launch from south Texas, seven months after its first attempt to reach space ended with an explosion. More

Venkitaramanan’s tenure as RBI Governor began in December 1990, a time when India faced the threat of defaulting on foreign loans with only $1.1 billion in reserves, barely enough for two weeks of imports. Appointed by then Prime Minister Chandra Shekhar, he implemented stringent credit limits and orchestrated gold sales to alleviate financial stress resulting from the previous government’s excessive short-term borrowing.Working closely with then Finance Minister Manmohan Singh, Venkitaramanan was instrumental in the rupee devaluation efforts and embraced the International Monetary Fund’s (IMF) stabilization program to navigate the country out of economic turmoil. His governance also saw decisive actions during the infamous Harshad Mehta scam, adding a layer of controversy to his legacy.Before his governorship, which lasted until December 1992, Venkitaramanan served as Finance Secretary from 1985 to 1989. His contributions extended beyond financial policy; he supported industrial development and played a significant role during India’s Green Revolution.The current RBI Governor Shaktikanta Das paid tribute to Venkitaramanan’s adept crisis management skills. Politician Jairam Ramesh also praised his vital support during a critical period in India’s agricultural sector, underscoring his enduring impact on the nation’s economic landscape.Venkitaramanan’s passing marks the end of an era for India’s economic history, remembering a figure whose strategies laid the groundwork for the country’s path to liberalization and modern financial policies.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

The license allows Commerzbank to expand its financial offerings, providing institutional clients with a secure platform for managing digital assets. This new service aligns with the bank’s strategy to adopt cutting-edge technology and meet the evolving needs of its customers in the realm of digital finance.Dr. Jörg Oliveri del Castillo-Schulz, COO of Commerzbank, highlighted the importance of this milestone on Wednesday, stating that the initiative reinforces the bank’s commitment to technological innovation within the financial sector. The bank aims to build a blockchain-based system tailored for institutional clients, addressing the growing demand for sophisticated digital asset management solutions.Regulatory authorities are keeping a close watch on these developments to ensure consumer protection and compliance with stringent oversight measures. Andrea Enria, a key regulatory figure, has emphasized the necessity for crypto ventures like Commerzbank to adhere to strict regulations.Looking ahead, broader regulatory frameworks such as the Markets in Crypto-Assets (MiCA) regulation are garnering support from European officials, including the French Finance Minister. MiCA mandates licensing for crypto firms and requires asset disclosures, alongside setting transaction limits for stablecoins. Additionally, the European Banking Authority (EBA) is drafting guidelines for periodic liquidity stress tests for these firms.Commerzbank’s licensure represents a significant advancement for the integration of cryptocurrencies within institutional banking in Germany and sets a precedent for other banks considering similar ventures in digital asset services.With Commerzbank’s recent approval to operate as Germany’s first full-service bank offering cryptocurrency custody services, it’s essential to consider the bank’s financial performance and outlook.InvestingPro Tips highlight that Commerzbank has consistently increased its earnings per share and that three analysts have revised their earnings upwards for the upcoming period. These are promising signs for investors, indicating a positive sentiment towards the bank’s financial performance.InvestingPro’s real-time data provides further insights. As of Q3 2023, Commerzbank had a market cap of $15,128.71M and a P/E ratio of 6.01, indicating a low earnings multiple, which suggests the stock could be undervalued. The bank also achieved a revenue growth of 18.55% over the last twelve months as of Q3 2023, illustrating strong financial performance.These metrics and tips are part of a larger set available with an InvestingPro subscription, which is currently on a special Black Friday sale with a discount of up to 55%. This subscription offers access to additional tips and metrics that can help investors make informed decisions about their investments.In conclusion, Commerzbank’s new venture into cryptocurrency services, combined with its promising financial performance and positive analyst sentiment, make it a company to watch in the evolving digital finance landscape.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More