Connect with us

Volkswagen said the ongoing trade dispute with the United States had dampened the business climate in China, its most important market, over the second half of 2018.

Volkswagen’s head of sales, Christian Dahlheim, said in a webcast on Friday that he expected demand in China to remain stable in 2019, although the first quarter would be challenging.

Separately, Dahlheim said the German carmaker did not foresee a significant financial impact in 2019 from the implementation of the new WLTP emissions standard, which cost the company 1 billion euros ($1.2 billion) in 2018.

Volkswagen Group said December deliveries fell 8.4 percent, to 916,200 vehicles, from 999,900 a year earlier.

December group deliveries to China dropped by 12.5 percent year-on-year, the Wolfsburg-based carmaker said, adding deliveries also fell by 5.6 percent in Europe and by 3.4 percent in the United States.

Source link

World

Shipper Moller-Maersk on US-China tensions, threats to global trade

Published

on

While the U.S. and China are negotiating a trade deal, the world’s biggest container shipping company is watching out for other problems between major economies.

One risk to import and export activity include the United States’ outstanding trade negotiations with the European Union. Another is the possibility of changes in the relationship between Europe and China, Soren Skou, chief executive of A.P. Moller-Maersk, said on Sunday.

“First of all, it’s pretty clear that the U.S. administration and EU have an outstanding discussion. It was kind of kicked to a corner last summer. While U.S. and China are negotiating, I’m sure that there’ll be a revival of discussions about car tariffs and what-not between the U.S. and Europe,” Skou told CNBC’s Eunice Yoon at the China Development Forum in Beijing.

In addition, “Europe wants to reshape the relationship with China, so there’s plenty of high level politics going on,” he added.

U.S. President Donald Trump threatened to impose tariffs of up to 25 percent on European cars and auto parts last year. But Trump reportedly promised European Commission President Jean-Claude Juncker that he would hold off on those tariffs for the time being.

Source link

Continue Reading

World

Trade war uncertainty is affecting German chemical giant

Published

on

An employee walks through the production facility of BASF-YPC Company in Nanjing, Jiangsu Province, China. The company is one of the largest Sino-Germany joint ventures in China that produces the basic ingredients that eventually have various applications in almost every product.

Qilai Shen | Corbis Historical | Getty Images

An employee walks through the production facility of BASF-YPC Company in Nanjing, Jiangsu Province, China. The company is one of the largest Sino-Germany joint ventures in China that produces the basic ingredients that eventually have various applications in almost every product.

The world’s largest chemicals company wants the trade war to end quickly.

“The biggest issue here is the uncertainty. Uncertainty is causing problems with planning,” Sanjeev Gandhi, a member of the board of executive directors at German chemicals firm BASF, told CNBC on Sunday. “The uncertainty is also affecting our business negatively.”

Trade friction between the U.S. and China has hurt BASF, which has a large presence in China, the world’s largest chemical market.

“The expectation is that there is a solution found, and the solution comes soon,” Gandhi told Eunice Yoon at the China Development Forum in Beijing. “Short term, this will lift the sentiment of the market, it will clear away the uncertainties, and hopefully that brings us back to business as usual.”

In January, BASF inked a $10 billion framework agreement with the Guangdong government to build a chemicals complex in China’s most populous province. It will be China’s first wholly foreign-owned chemicals complex — and the German firm’s single largest investment.

Reuters reported that the deal concluded quickly, in part due to fears that the U.S.-China conflict could hurt investment prospects in Guangdong. That in turn prompted government officials to be more open to the BASF deal, the news agency said, quoting people familiar with the matter.

Gandhi disagreed with that assessment. He said that BASF has been active in China for more than 134 years, and has invested more than 8 billion euros ($9.06 billion) there in the past decade.

“We have a very good reputation. We bring the latest innovative solutions to our customers in China. If China is welcoming BASF, it is not because of the opportunity, it is because of our track record,” Gandhi said.

Source link

Continue Reading

World

A trade deal won’t remove US-China tension, says Asia Group CEO

Published

on

U.S. President Donald Trump and China's President Xi Jinping leave a business leaders event at the Great Hall of the People in Beijing on November 9, 2017.

Nicolas Asfouri | AFP | Getty Images

U.S. President Donald Trump and China’s President Xi Jinping leave a business leaders event at the Great Hall of the People in Beijing on November 9, 2017.

The U.S. and China could reach a trade agreement in a matter of weeks, but that’s unlikely to improve relations between the two economic giants over the longer term, according to former U.S. diplomat.

The two largest economies in the world have been trying to negotiate a trade deal to iron out their differences on issues such as the forced transfer of technology from American firms to China, Beijing’s subsidies for its domestic companies, and a trade imbalance between China and the U.S.

“I think we’ll see a deal — I think both countries understand that it’s in each of their best interests. I expect something to be done in the next four to six weeks,” Kurt Campbell, chairman and chief executive of advisory firm The Asia Group, told CNBC’s Martin Soong on Sunday at the China Development Forum in Beijing.

Campbell added that the eventual deal would address a number of “contentious” issues between the U.S. and China. But there are other conflicts that can’t be solved in the short term, he said, though he did not specify what those issues are.

“I expect tensions will continue between the United States and China,” said Campbell, who served as assistant secretary of state for East Asian and Pacific Affairs during the administration of President Barack Obama.

The U.S. and China have engaged in a tariff fight that began last year. The administration of President Donald Trump imposed additional tariffs on $250 billion in Chinese imports, while Beijing slapped duties on $110 billion of American goods.

Several experts have pointed out that friction between the U.S. and China goes beyond trade.

Billionaire investor Ray Dalio, the founder of Bridgewater Associates, told CNBC last year that the two countries’ vastly different governing methods make up the broader, more difficult issue to reconcile.

Source link

Continue Reading

Trending