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Latest from the IFF

  

 

 

 

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IFF and WHIID Jointly Launch Sci-Tech Finance Committee to Support Innovation-Driven Development

 

The IFF Sci-tech Finance Committee has launched a Startup Service Requirements Survey! In the context of global economic divergence and geopolitical uncertainty, the deep integration of technology and finance is crucial for driving innovation and prosperity.

This survey aims to understand the needs of startups in areas such as financing, technology matching, talent cultivation, and market expansion. Your feedback will help optimize the service system and inform targeted support policies, contributing to a sustainable tech finance ecosystem. Together, we can promote the deep integration of technology and finance for mutual success.Thank you for your support of the IFF Sci-tech Finance Committee! 

 

 

 

 

 

 

 

 

 

Newsletter

China News

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China's Auto Production, Sales Exceed 10 Million Units in First Four Months

 

 

 

 

 

 

 

 

 

 

 

 

 

China's vehicle production and sales exceeded 10 million units each in the first four months of the year, achieving such milestone for the first time ever, mainly thanks to policy incentives and technological upgrades, the China Association of Automobile Manufacturers (CAAM) said on May 12.

 

Production reached nearly 10.18 million units, up 12.9 percent from last year, while sales rose 10.8 percent to 10.06 million units, marking the first time both surpassed 10 million.

New energy vehicles (NEVs) showed remarkable growth, with production up 48.3 percent to about 4.43 million units and sales increasing 46.2 percent to 4.3 million units, representing 42.7 percent of total new vehicle sales.

The CAAM's data also showed that the country's auto exports climbed 6 percent year on year to nearly 1.94 million units in the first four months. Notably, NEV exports soared 52.6 percent to 642,000 units.

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China, US Announce Measures to Ease Tariff Tensions

 

 

 

 

 

 

 

China and the United States announced on May 12 a series of tariff modification measures aimed at easing trade tensions between the world's two largest economies.

The decision followed a two-day China-US high-level meeting on economic and trade affairs, where both sides recognized the importance of their bilateral economic and trade relationship to both countries and the global economy, a joint statement said, noting that both sides emphasized the need for a sustainable, long-term and mutually beneficial economic and trade relationship.

According to the statement, The U.S. will pause 24 percentage points of the additional tariff on Chinese goods starting April 2, retaining a 10 percent rate. It will also remove tariffs announced on April 8 and 9.

China will similarly suspend 24 percentage points of its tariffs on U.S. goods for 90 days while keeping a 10 percent rate. It will revoke additional tariffs imposed in early April.

China will also suspend non-tariff countermeasures against the U.S. Both countries will establish a mechanism for ongoing discussions about economic relations, potentially alternating meetings in either country or a third party.

The two sides will also establish a mechanism to continue discussions about economic and trade relations. These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties, the statement said.

 

 

 

China’s consumer prices fell in April for the third consecutive month, while factory gate prices declined the most since last October, according to figures released by the National Bureau of Statistics (NBS) on May 10.

The consumer price index fell 0.1 percent last month from a year ago, after declines of 0.1 percent and 0.7 percent in the prior two months, NBS said. 

Producer prices slid for the 31st consecutive month in April, with the producer price index falling 2.7 percent from a year earlier, compared with a 2.5 percent decline in March, according to the NBS data. 

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China's Exports Hold Up in April, Rising by More-Than-Expected 8.1%

 

 

 

 

 

 

 

 

 

 

 

China's exports in US dollar terms rose 8.1 percent last month from a year earlier, exceeding market expectations despite declining from a 12.4 percent growth the month before, highlighting the country's foreign trade strength, the General Administration of Customs announced on May 9.

Exports of goods from China topped USD315.7 billion in April, according to the data released by the General Administration of Customs, the first such figures after the United States imposed its so-called reciprocal tariffs. Imports fell 0.2 percent to USD219.5 billion, while the trade surplus was USD96.2 billion, falling short of analysts' expectations.

China's exports to the US tumbled 21 percent to USD33 billion, compared with an 8.9 percent year-on-year growth in March. Those to non-US regions rose 13 percent, with exports to the Association of Southeast Asian Nations surging 21 percent.

The 2025 Intersolar Europe exhibition, one of the world's most influential events in the photovoltaic (PV) industry, concluded here on May 9 after a three-day run. Chinese companies as major highlights of the event won widespread acclaim for their cutting-edge products and system integration capabilities.

The exhibition hosted over 2,700 companies from more than 50 countries and regions, including around 850 from China. These Chinese exhibitors showcased a wide array of innovations ranging from high-efficiency PV modules to energy storage systems, EV charging infrastructure, and integrated energy solutions.

Markus Elsaesser, founder and CEO of Solar Promotion GmbH, the event's organizer, said that Chinese companies were "not only key product suppliers but also supplying very cost-effective solutions so that we can advance with the decarbonization of Europe."

According to a report entitled the Global Market Outlook for Solar Power 2025-2029, released during the event by SolarPower Europe, China accounted for roughly half of both the world's new solar capacity additions and cumulative installations in 2024. The report hailed China's contributions to global decarbonization, noting that its sustained investments have accelerated solar technology advancements worldwide.

China's foreign exchange reserves rose 1.3 percent in April from the month before, while its gold reserves increased for the sixth consecutive month, according to official data released on May 7.

China's forex holdings expanded by USD41 billion to USD3.2817 trillion as of April 30 from March 31, mainly as a result of currency exchange rates and asset price changes, the State Administration of Foreign Exchange announced.

The People's Bank of China increased its holdings of gold by 70,000 ounces to 73.77 million ounces last month, SAFE data also showed.

From November to April, the PBOC added 970,000 ounces of the precious metal, while its reserves had been steady for the six months prior to that.

 

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US CPI Continues to Cool in April Year-on-Year

 

 

 

 

 

US consumer inflation rose 2.3 percent year-on-year in April, down from 2.4 percent in March and 2.8 percent in February, the U.S. Labor Department reported on May 13.

According to the report released by the Bureau of Labor Statistics, the Consumer Price Index (CPI), a broad measure of goods and services costs across the U.S. economy, increased 0.2 percent on a seasonally adjusted basis in April, after falling 0.1 percent in March.

Driven primarily by a 12.7 percent decrease in the index for eggs, the index for meats, poultry, fish and eggs fell 1.6 percent in April after rising in recent months.

The latest inflation report showed that the so-called core CPI, which excludes food and energy, grew 0.2 percent in April, following a 0.1 percent rise in March.

Britain's labor market showed signs of cooling in early 2025, with slower wage growth, a slight rise in unemployment, and declining job vacancies, according to the Office for National Statistics (ONS) on May 13.

The employment rate was 75.0 percent in the first quarter, slightly higher than last year, but the unemployment rate also increased. Payrolls dropped by 47,000 between February and March, with an estimated further decline of 33,000 in April, totaling 30.3 million payrolled employees.

Average weekly earnings excluding bonuses rose by 5.6 percent year-on-year, down from 5.9 percent in the previous quarter. Including bonuses, total pay increased by 5.5 percent. After inflation adjustments, real regular pay grew by 1.8 percent.

Job vacancies fell by 42,000 over the three months to April, marking the 34th consecutive decline, with total vacancies now at 761,000, slightly below pre-pandemic levels.

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Japan's Current Account Surplus Hits Record High in FY 2024

 

 

 

 

 

Japan logged a record current account surplus of 30.38 trillion yen (about 208 billion U.S. dollars) in fiscal 2024, marking the highest level since comparable data became available in 1985, data from the Ministry of Finance showed on May 12.

The surplus was primarily driven by a robust primary income surplus of 41.71 trillion yen, reflecting increased returns from overseas investments, including dividends and interest earnings.

The depreciation of the yen played a crucial role in enhancing the foreign investment returns. The average exchange rate in fiscal 2024 was 152.48 yen to the U.S. dollar, reflecting a 5.5-percent depreciation from fiscal 2023.

The trade balance showed a deficit of 4.05 trillion yen, a 9.8 percent increase from the previous year. Additionally, the services balance had a deficit of 2.58 trillion yen. Inbound tourism reached a record 38.85 million, leading to a travel surplus of 6.69 trillion yen, a 58.3 percent increase from the prior year.

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US, Britain Reach Trade Deal, Details Yet to be Finalized

 

 

 

 

 

 

 

US President Donald Trump on May 8 announced at the White House that the United States and Britain had reached a new trade agreement, which includes partially rolling back tariffs in certain sectors and further expanding market access for each other's products.

However, details of the agreement still need to be finalized, and the 10 percent "reciprocal tariff" remains in place. Under the deal, the first 100,000 vehicles imported from Britain each year will face the 10 percent tariff, with additional vehicles subject to a 25 percent rate.

Britain is expected to reduce or eliminate non-tariff barriers and expand access for U.S. products like beef and ethanol. The agreement also establishes "a new trading union" for steel and aluminum, with tariffs on British steel exports to the U.S. set to be removed.

Canada's unemployment rate rose 0.2 percentage points to 6.9 percent in April, following an increase of 0.1 percentage points in March, Statistics Canada said on May 9.

With these increases, the unemployment rate has returned to its level of November 2024, which was the highest since January 2017, excluding the years 2020 and 2021, during the COVID-19 pandemic, the national statistical agency said.

According to the agency, people who were unemployed continued to face more difficulties finding work in April than a year earlier. Among those who were unemployed in March, 61 percent remained unemployed in April, higher than the corresponding proportion for the same months in 2024.

Employment was little changed in April and the employment rate declined 0.1 percentage points to 60.8 percent, said the agency.

The U.S. Federal Reserve will maintain the federal funds rate at 4.25 to 4.5 percent on May 7 amid concerns over tariffs on major trading partners.

This is the third consecutive decision to keep rates unchanged since January and March meetings. Fed Chair Jerome Powell stated that current rates allow officials to take a "wait-and-see" approach to evaluate the tariffs' impacts.

"Depending on how things play out, it could include rate cuts, it could include us holding where we are, we just need to see how things play out before we make those decisions," he said.

Powell noted that the Trump administration's new policies are still evolving and that their economic effects remain "highly uncertain."