<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107188550-1675411012194-gettyimages-1461906689-vcg111420710254-820x547.jpeg" alt="" class="wp-image-592881" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107188550-1675411012194-gettyimages-1461906689-vcg111420710254-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107188550-1675411012194-gettyimages-1461906689-vcg111420710254-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107188550-1675411012194-gettyimages-1461906689-vcg111420710254-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107188550-1675411012194-gettyimages-1461906689-vcg111420710254-768x513.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107188550-1675411012194-gettyimages-1461906689-vcg111420710254-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107188550-1675411012194-gettyimages-1461906689-vcg111420710254-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Employees work on an electronics production line on Feb. 2, 2023, at a factory in Longyan, Fujian province in China. China News Service | China News Service | Getty Images</figcaption></figure>



China’s factory activity expanded at its fastest pace in three months to 50.8 in February, a private-sector survey showed on Monday, as millions of migrant workers returned to work after an extended Lunar New Year holiday.



The seasonally adjusted Caixin/S&amp;P Global manufacturing purchasing managers’ index beat Reuters poll forecast of 50.3, also accelerating from 50.1 in January and 50.5 last December.



The private-sector manufacturing PMI has stayed above the 50 threshold that separates expansion from contraction since last October.



This private survey reading on Monday followed the official manufacturing PMI released on Saturday, which also showed that China’s February factory activity expanded at its fastest pace since November.



The official PMI rose to 50.2 in February from 49.1 in January, according to the National Bureau of Statistics. The non-manufacturing PMI, which includes services and construction, also climbed to 50.4 from 50.2 in January.



The figures came as economists flagged that fresh U.S. tariffs could pressure the country’s manufacturing activity — which accounted for a quarter of China’s GDP last year — and dent the role of exports as a key driver of growth this year.



In February, new export orders grew at the fastest rate since last April, according to the Monday survey, as “demand strengthened from foreign clients.”



The stronger external demand for Chinese manufactured goods could be due to U.S. importers continuing to front-run tariffs in anticipation of even higher levies, Zichun, Huang, China economist at Capital Economics, said in a note.



U.S. President Donald Trump last week announced to impose additional 10% tariffs on Chinese goods — on top of the 10% he levied on China on Feb. 4. Trump had threated 60% tariffs on China on his campaign trail.



The additional tariffs are scheduled to take effect on March 4, coinciding with a high-profile annual gathering in Beijing where Chinese authorities are expected to unveil economic targets for 2025 and fresh policy support.



While attention is now on potential countermeasures from Beijing, investors also await more government details on a broad stimulus plan to prop up the slowing economy, including ramped-up fiscal spending to boost domestic demand and fend off persistent disinflationary pressures.



<h2 class="wp-block-heading" id="h-patchy-recovery"><a></a>Patchy recovery</h2>



At the upcoming parliamentary meetings, China’s leadership is expected to acknowledge a significant softening in domestic demand while revealing highly anticipated details on fiscal stimulus aimed at shoring up growth in the face of heightened U.S. trade tensions.



While a combination of fiscal support and “tariff front-running” helped China’s economy regain some momentum in February, the overall growth in this quarter is likely to slow, Capital Economics’ Huang said.



“Unless the leadership unveil greater-than-expected stimulus at the National People’s Congress, it is hard to see how a slowdown can be avoided this year,” Huang said.



Plagued by lackluster domestic consumption, output prices at factories have remained under pressure, particularly consumer and investment goods that experienced sharper price declines, according to the Monday survey.



Squeezing that profit margin further, costs for copper and certain chemical products have edged higher, the survey showed.



Employment in the manufacturing sector also slumped to a near five-year low, as manufacturers continued to prioritize cost reductions, particularly among consumer goods producers.

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China’s factory activity growth hits 3-month high in February, as millions return to work after holidays

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104755-1740023049512-gettyimages-1212971284-AFP_1RK86F-820x461.jpeg" alt="" class="wp-image-591874" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104755-1740023049512-gettyimages-1212971284-AFP_1RK86F-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104755-1740023049512-gettyimages-1212971284-AFP_1RK86F-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104755-1740023049512-gettyimages-1212971284-AFP_1RK86F-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104755-1740023049512-gettyimages-1212971284-AFP_1RK86F-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104755-1740023049512-gettyimages-1212971284-AFP_1RK86F-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104755-1740023049512-gettyimages-1212971284-AFP_1RK86F.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Chinese President Xi Jinping and U.S. President Donald Trump. Dan Kitwoodnicholas Kamm | Afp | Getty Images</figcaption></figure>



China’s Ministry of Commerce said Friday that it “firmly opposes” U.S. President Donald Trump’s latest threat to ramp up tariffs on Chinese goods and vowed retaliation, if necessary.



“If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests,” a Ministry of Commerce spokesperson said in a statement, translated by CNBC.



“We urge the U.S. side to not repeat its own mistakes, and to return as soon as possible to the right track of properly resolving conflicts through dialogue on equal footing.”



The statement followed Trump’s Thursday announcement that the U.S. would impose an additional 10% duty on Chinese imports on March 4, which coincides with the start of China’s annual parliamentary meetings.



The new tariffs would be on top of the 10% further tariffs that Trump levied on China on Feb. 4.



Trump announced the two rounds of China duties were being imposed in response to the Asian country’s role in the fentanyl trade. The addictive drug, precursors to which are mostly produced in China and Mexico, has led to tens of thousands of overdose deaths each year in the U.S.



“In the short term, China’s response will likely include raising tariffs on select U.S. imports, adding more American firms to its unreliable entity list, and potentially further tightening export controls on critical minerals,” Neil Thomas, a fellow on Chinese politics at the Asia Society, said by email.



He noted he nevertheless expects Beijing’s retaliation will remain “measured,” as Chinese President Xi Jinping has an incentive to meet with his American counterpart and initiate negotiations to avoid measures that put greater pressure on already sluggish economic growth.



China’s exports have been a rare bright spot in an otherwise slowing economy. The U.S. is China’s largest trading partner on a single-country basis.



While Beijing may maintain a “restrained” stance, upcoming moves will likely target industries that matter the most to Trump supporters, said Alfredo Montufar-Helu, head of the China Center at The Conference Board.



China would prefer to leave some room for further negotiations as it hopes to avoid even higher import tariffs and other “corrective” measures by Washington, he said.



After the first round of tariffs earlier this month, China’s retaliatory measures included raising duties on certain U.S. energy imports and putting two U.S. companies on an unreliable entities list that could restrict their ability to do business in the Asian country.



China has also increased controls on exports of critical minerals that the U.S. needs.



“The sharpest arrow that China has in its quiver would be to restrict U.S. access to critical minerals that can’t readily be sourced elsewhere,” said Stephen Olson, a visiting senior fellow at the Institute of Southeast Asian Studies and a former U.S. trade negotiator.



<h2 class="wp-block-heading" id="h-a-stronger-tone"><a></a>A stronger tone</h2>



Despite the lack of specifics, the Ministry of Commerce statement on Friday struck a stronger tone than the country’s response to the initial 10% duties earlier this month.



The ministry defended China’s drug control efforts and called the latest tariff threat — on grounds of illegal fentanyl flows — as “purely shifting the blame” without helping the U.S. solve its own drug problems. It also denounced the additional levies for “adding to the burdens on American businesses and consumers and disrupting the global supply chain.”



The latest communique “sends a clear message that the Chinese government is ready to respond in defense of national interests, and they won’t ‘bend the knee,’” said Montufar-Helu.



In contrast, the ministry’s statement dated Feb. 2 urged Washington to manage fentanyl issues “objectively and rationally” while cautioning the tariffs could damage normal China-U.S. economic and trade relations.



China’s Ministry of Foreign Affairs also toughened its tone in a response to the tariffs Friday. The U.S. act of “pressuring, coercing and threatening” China with tariffs will only backfire, spokesperson Lin Jian said in Chinese comments reported by state media and translated by CNBC.



Trump’s announcement of extra tariffs will “push China into a position of assuming that a deal may not be possible or may not be achievable in the near term,” Deborah Elms, head of trade policy at the Hinrich Foundation, told CNBC.



“That leaves Beijing with two options:&nbsp;either roll out continued measured responses in the hope of avoiding further escalation and maybe even rolling back existing measures; or going much bigger,” she added, as the previous “modest measures weren’t enough and the threat for future escalation wasn’t taken seriously enough.”



<h2 class="wp-block-heading"><a></a>More tariffs likely</h2>



At the start of his second term, Trump ordered his administration to investigate Beijing’s compliance with a trade deal struck during his first presidency in 2020. The final result of the assessment will be delivered to Trump by April 1.



That could set the stage for further actions of what Trump called “reciprocal tariffs,” raising duties on various countries including China to match their existing levies on U.S. imports.



In a social media post Thursday, the U.S. president confirmed that “The April Second Reciprocal Tariff date will remain in full force and effect.”

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China vows to retaliate as necessary after Trump threatens another 10% tariff hike

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/OQQ6BEBXMBIAPNOO66XNIHPJK4.avif" alt="" class="wp-image-590632"/><figcaption class="wp-element-caption">Young residents carry water home after filling up a bottle at a community filling station in the informal settlement of Kanana after individuals died from cholera in Hammanskraal, South Africa, May 24, 2023. REUTERS/Ihsaan Haffejee TPX IMAGES OF THE DAY</figcaption></figure>



CAPE TOWN, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;The debt crisis facing the world&#8217;s poorest economies is reaching new highs and debt servicing is eating up a growing share of revenues at the expense of spending on development, the United Nations Development Programme warned on Tuesday.



A new multilateral debt relief deal that includes all creditors &#8220;warrants serious attention&#8221;, UNDP said in a policy paper.



Interest payments on debt exceeded 10% of government revenue in 56 developing nations &#8211; almost twice the number of countries compared to a decade ago, according to the UNDP report published as G20 finance ministers and central bank governors kick off their meeting in South Africa.



Of those, 17 countries spent more than 20% of revenue on interest payments &#8211; surpassing a threshold strongly linked to default risk, UNDP said. Rising debt service burdens had surpassed levels not seen in more than two decades, it said.



&#8220;The debt-development trade-offs threaten a lost decade of development progress for many of the world&#8217;s poorest nations,&#8221; said UNDP Administrator Achim Steiner.



The external debt of the 31 poorest countries at high risk of debt distress was just over $200 billion, equivalent to less than a third of the 2021 allocation of IMF special drawing rights, an international reserve currency, which chiefly went to rich nations.



As part of the 2021 allocation, wealthy countries agreed to rechannel some of their unused SDRs back to the IMF so the Fund could lend them at below-market rates to low-income countries.



A new relief deal &#8211; if roughly modelled on the average 60% debt stock reduction achieved through the Highly Indebted Poor Countries initiative launched nearly three decades ago &#8211; could save those 31 poorest countries nearly $80 billion, UNDP calculated. This would rise to $100 billion if the repayment period was extended by another seven years.



(Reporting by Duncan Miriri and Karin Strohecker; Editing by Ros Russell)

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Debt crisis hits new highs in developing nations, relief deal needed, says UN

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="377" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/M34ZXN6UKBNUHJLS5HD7NFP7O4.avif" alt="" class="wp-image-590622"/><figcaption class="wp-element-caption">The logo of commodities trader Glencore is pictured in front of the company&#8217;s headquarters in Baar, Switzerland, July 18, 2017. REUTERS/Arnd Wiegmann/File Photo</figcaption></figure>



Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Trading houses Vitol and Glencore will receive $380 million in compensation after their gas supplier, trading firm Taleveras, won a legal battle in a London court against Nigeria’s sole liquefied natural gas (LNG) producer for non-delivery of cargoes, court documents seen by Reuters showed.



The case heard in London&#8217;s High Court and Court of Appeal is the latest in a string of lawsuits brought by buyers against sellers and producers for non-delivery of cargoes after gas rallied from lows plumbed during the COVID pandemic when Russia invaded Ukraine in February 2022.



Taleveras sued Nigerian venture, known as NLNG and involving ShellSHEL.L TotalEnergies TTEF.PA and Eni ENI.MI as partners, four years ago. These three companies are minority shareholders in NLNG, along with the Nigerian state-owned oil company which has 49%. Last week, Taleveras had NLNG&#8217;s appeal rejected, according to an official video of court proceedings.



A full written judgment is due to be released in the coming weeks.



NLNG runs Nigeria’s biggest LNG plant, which covers around 5% of global supply.



NLNG said it was reviewing the ruling and declined further comment. Shell&nbsp;and Eni declined&nbsp;to comment, while TotalEnergies did not respond to a request for comment.



Court proceedings focused on 19 cargoes that NLNG had been due to deliver to Taleveras in 2020-2021.



Taleveras had pre-sold some of these cargoes to Vitol and Glencore, according to court documents.



The trading houses took legal action against Taleveras for non-delivery, leading to a chain of litigation.



The lost appeal means NLNG will need to pay Vitol around $260 million and about $120 million to Glencore, the documents said.



Vitol and Glencore did not respond to requests for comment. It was not clear how much Taleveras would receive on top of $380 million. Taleveras declined to comment.



European benchmark gas prices&nbsp;TRNLTTFMc1&nbsp;swung between 3.63 euros ($4.14) per megawatt-hour in 2020 as demand fell because of the pandemic and 311 euros ($328) per MWh in 2022 after the invasion of Ukraine disrupted supplies to Europe.



When prices soared, some producers cut supply under long-term deals and sold those volumes at higher prices on the spot market instead, triggering a wave of complaints about legality of such actions.



In one such case, Shell SHEL.L and BP BP.L pursued arbitration against Venture Global LNG, a U.S. gas exporter, for failing to supply contracted cargoes. Venture Global cited technical issues at its LNG facilities as the reason for delayed deliveries.



In the case of Taleveras versus NLNG, Reuters could not establish the reasons NLNG cited for delays.



Taleveras was founded in 2004 by Igho Sanomi, one of Nigeria’s independent energy traders. The company is now based in Dubai.



(Reporting by Anna Hirtenstein; Additional reporting by Marwa Rashad and Isaac Anyaogu; Editing by Tomasz Janowski)

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Vitol, Glencore win $380 million award in Nigerian LNG litigation

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/KWNFLKVDZBNCHKDHIAWQFVHUEU.avif" alt="" class="wp-image-590584"/><figcaption class="wp-element-caption">The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo</figcaption></figure>



LONDON/SINGAPORE, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Global demand for liquefied natural gas is estimated to rise by around 60% by 2040, driven largely by economic growth in Asia, AI impact and efforts to cut emissions in heavy industries and transportation, Shell said in an annual report on Tuesday.



Demand for natural gas continues to rise globally as the world transitions to cleaner fuels. Industry forecasts LNG demand to reach between 630 million and 718 million metric tons a year by 2040, Shell said in its 2025 annual LNG outlook.



The latest view from the world&#8217;s largest LNG trader is higher than last year&#8217;s forecast, which pegged global LNG demand in 2040 at 625 million to 685 million tons per year.



&#8220;Upgraded forecasts show that the world will need more gas for power generation, heating and cooling, industry and transport to meet development and decarbonisation goals,&#8221; said Tom Summers, Shell&#8217;s senior vice president for LNG marketing and trading.



China, the world&#8217;s top LNG importer, and India are increasing LNG import capacity and gas related infrastructure to meet rising demand, Shell added.



Natural gas imports into China are forecast to rise this year as economic stimulus plans lift industrial demand, although trade tensions with the U.S. may cap growth.



China saw total natural gas imports, including pipeline supply, of 131.69 million tons last year, the highest since at least 2013. Of that volume, 76.65 million tons was LNG, according to its customs data.



In India, the International Energy Agency expects natural gas consumption to jump 60% between 2023 and 2030, doubling the country&#8217;s need for LNG imports, as domestic output is expected to grow much more slowly than demand.



While a young population and economic growth are driving an increase in gas demand in emerging markets Algeria, Egypt, Malaysia and Indonesia, domestic production in those markets is seen declining over the next 15 years by up to 50 million tons, equating to less available gas for export, the report said.



SUPPLY SIDE



To meet rising demand, particularly in Asia, more than 170 million tonnes of new LNG supply is set to be available by 2030, said Shell. The start-up timings of new LNG projects, however, are uncertain, Shell said.



Several LNG projects have seen delays over the past two years due to geopolitical tensions, regulatory hurdles, labour shortages and supply chain bottlenecks, delaying the availability of around 30 million tons of new LNG supply, the size of India&#8217;s LNG imports, to 2028.



In 2024, global LNG trading rose by only 2 million tons to 407 million tons due to constraints on development of new supply, marking the smallest annual increase in the past decade, the report said.



The report showed that anticipated supply during the period was between 7 million and 20 million tons but it undershot even the lowest end of the forecast range.



The report expects Europe&#8217;s LNG demand to grow in 2025 and beyond.



&#8220;Europe will continue to need LNG into the 2030s to balance the growing share of intermittent renewables in its power sector. In the longer term, existing natural gas infrastructure could be used to import bio-LNG or synthetic LNG and be repurposed for the import of green hydrogen,&#8221; the report said.



Significant growth in LNG supply will come from top exporter the United States, potentially reaching 180 million tons a year by 2030 and accounting for a third of global supply.



Analysts expect that together with Qatar’s massive North Field expansion project set to come online in 2026, the United States and Qatar could provide around 60% of global LNG supply by 2035.



(Reporting by Marwa Rashad in London and Emily Chow in Singapore; Editing by Sonali Paul and David Evans)

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Shell expects 60% rise in global LNG demand by 2040

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="360" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ.jpg" alt="" class="wp-image-590532" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ-160x90.jpg 160w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">A French farmer harvests his field of maize in Thun-L&#8217;Eveque, France, September 29, 2022. REUTERS/Pascal Rossignol/File Photo </figcaption></figure>



PARIS, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Grain crops in the European Union were still mainly in good condition by mid-February, but excess moisture in France and dryness in Eastern Europe remained risks for this year&#8217;s harvest, the EU&#8217;s crop monitoring service said on Monday.



In France, heavy rainfall in the northwest in January exacerbated already-high soil moisture levels, creating unfavourable conditions for crop development, MARS said in a report.



The wet start to the year has fuelled concerns in France, the EU&#8217;s biggest grain producer, of a repeat of the soggy 2024 harvest that featured the smallest wheat crop since the 1980s.



The condition of French wheat declined sharply between early December and early February before steadying, according to data from the farm office FranceAgriMer.



In Eastern Europe, crops in western Romania and Bulgaria have suffered in particular from limited moisture since the start of the season, and those areas could see resowing in spring, MARS said.



Severe frosts expected during the second half of February were also a threat to crops in Eastern Europe already weakened by a lack of rain, particularly if they were without protective snow cover, it said.



Crop damage in the EU, however, was estimated to be relatively limited so far compared with eastern Ukraine, Morocco and Algeria that have endured more acute dryness, it added.



(Reporting by Gus Trompiz; Editing by Tasim Zahid)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_Y256STMOGJPFPMSOXGSZ3LRYQQ

Most EU grain crops in good shape but moisture risks linger

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PX47AV3OGVODBAQQ2I46RGINQA.avif" alt="" class="wp-image-590112"/><figcaption class="wp-element-caption">Prosus&#8217; logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo&nbsp;</figcaption></figure>



JOHANNESBURG, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Dutch technology investor Prosus&nbsp;PRX.AS&nbsp;has agreed to buy Just Eat Takewaway.com&nbsp;TKWY.AS&nbsp;for 4.1 billion euros ($4.3 billion) to create a &#8220;European tech champion&#8221; of food delivery.



Prosus, majority owned by South Africa&#8217;s Naspers&nbsp;NPNJn.J, is also the biggest shareholder in Glovo owner Delivery Hero&nbsp;DHER.DE&nbsp;with a 28% stake, it said in a statement on Monday.



The deal would mark a significant shift in the European food delivery market and have potential global implications, as it would make Prosus the fourth largest food delivery company in the world behind Meituan&nbsp;3690.HK, DoorDash&nbsp;DASH.O&nbsp;and Uber&nbsp;UBER.N, ING analysts said in a note.



With a food business spanning more than 70 countries, Prosus also owns Latin America&#8217;s top food delivery platform iFood, has a 25% stake in India&#8217;s leading food and grocery delivery platform Swiggy and a 4% stake in Meituan, it said.



Shares in Prosus fell 6% in Amsterdam after the announcement, while Just Eat surged 55% to match the premium of the offer price. Naspers&#8217; shares fell 6.3% in Johannesburg.



Prosus is offering 20.30 euros per a Just Eat share. The offer for the entire share capital is unanimously supported by Just Eat&#8217;s management and supervisory board.



Shares in Delivery Hero jumped 5%. A German trader said some analysts were seeing the deal as a first step towards a merger between the Dutch and German food delivery groups.



Prosus CEO Fabricio Bloisi said there was no plan or project on Delivery Hero right now.



&#8220;Our focus is growth and with growth we expect to create more jobs in many dimensions. More jobs in technology sector but also more jobs in restaurants and more opportunities for drivers too,&#8221; he told reporters in a call, referring to Just Eat.



Bloisi added that the new technology investment, including AI, would be aimed at making Just Eat&#8217;s delivery model more efficient.



&#8220;We are not looking forward to other big news in food delivery or acquisitions right now,&#8221; he said.



Citi analysts estimated that Prosus has some $5 billion to invest in further M&amp;A, though they expect the near term focus to be on execution and growth in its owned assets.



Just Eat&#8217;s management will remain in place and the company will stay based in Amsterdam, its CEO Jitse Groen said in a separate media call.



Earlier on Monday, Just Eat reported 36% growth in its 2024 core profit.



($1 = 0.9513 euros)



(Reporting by Nqobile Dludla in Johannesburg and Leo Marchandon in Gdansk, additional reporting by Paolo Laudani and Toby Sterling; Editing by Tom Hogue and Milla Nissi)

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Prosus to buy Just Eat to create a European food delivery ‘champion’

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/6RCXJR3LVNJQPK7SYWKC64O5XY.avif" alt="" class="wp-image-588973"/><figcaption class="wp-element-caption">China&#8217;s Foreign Minister Wang Yi speaks to the press following a meeting of the United Nations Security Council at the U.N. headquarters in New York City, U.S., February 18, 2025. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



BEIJING, Feb 21 (Reuters)&nbsp;&#8211;&nbsp;China came out in support of U.S. President Donald Trump&#8217;s bid to strike a deal with Russia to end the war in Ukraine, at a G20 meeting in South Africa on Thursday, while U.S. allies rallied around Ukrainian President Volodymyr Zelenskiy.



Less than a month into his presidency, Trump has upended U.S. policy on the war, scrapping a campaign to isolate Moscow with a phone call to Russian President Vladimir Putin and talks between senior U.S. and Russian officials that have sidelined Ukraine.



Trump on Wednesday then denounced Zelenskiy as a &#8220;dictator,&#8221; prompting statements of support for the Ukrainian president from G20 members such as Australia, Germany and the United Kingdom.



&#8220;China supports all efforts conducive to peace (in Ukraine), including the recent consensus reached between the United States and Russia,&#8221; Wang Yi told other G20 foreign ministers gathered in Johannesburg, according to a statement from his ministry.



&#8220;China is willing to continue playing a constructive role in the political resolution of the crisis,&#8221; he added.



Wang did not reiterate the point he made at the Munich Security Conference last Friday that all stakeholders in the Russia-Ukraine conflict should participate in any peace talks.



&#8220;China is generally happy to see the easing of relations between the United States and Russia and the shift of the Ukrainian crisis to a political solution, but will pay close attention to the direction of negotiations and the direction of easing of U.S.-Russian relations,&#8221; said Cui Hongjian, head of European Union studies at Beijing Foreign Studies University.



&#8220;If China participates in mediation, it can reduce the risk of the United States using the easing of relations with Russia to harm China&#8217;s interests.&#8221;



He added that Wang Yi&#8217;s previous remark that all stakeholders should be included in talks covers not only Ukraine and Europe, but also China and Global South countries.



Global South countries represent developing, emerging or lower-income nations, mostly in the southern hemisphere.



However, other analysts were sceptical of China&#8217;s substantive involvement beyond rhetorical statements at this stage, given Beijing&#8217;s aversion to taking geopolitical risks.



&#8220;China is happy not to be called on the spot to deliver because they don&#8217;t know what Trump will demand,&#8221; said Alexander Gabuev, director of the Carnegie Russia Eurasia Center.



&#8220;Trump wanted China&#8217;s involvement initially but now he&#8217;s spoken to Putin. He is under the impression that he doesn&#8217;t need China to get a deal with Putin and Putin will give him a perfect and better deal going forward.&#8221;



Wang said China-Russia relations are &#8220;moving towards a higher level and broader dimension&#8221; during a meeting with Russian Foreign Minister Sergey Lavrov on the sidelines of the G20. Both men will meet in Moscow soon for their next talks, Lavrov said earlier on Thursday.



Other analysts believe that China wants to keep a foot in the door of negotiations because it wants to take part in Ukraine&#8217;s reconstruction.



&#8220;China might turn its attention to discussing a Chinese role in eventual reconstruction and peacekeeping &#8211; something that would give Beijing a significantly more vested interest in European security architecture,&#8221; said Ruby Osman, a China expert at the Tony Blair Institute for Global Change.



The Trump administration said on Tuesday it had agreed to hold more talks with Russia on ending the nearly three-year long conflict after a 4-1/2-hour long meeting in Saudi Arabia.



Russia said the talks had been useful, but hardened its demands, notably insisting it would not tolerate the NATO alliance granting membership to Ukraine.



(Reporting by Joe Cash and Laurie Chen; Editing by Sonali Paul and Michael Perry)

6RCXJR3LVNJQPK7SYWKC64O5XY

China backs Trump’s Ukraine peace bid at G20 as US allies rally behind Zelenskiy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-820x547.jpeg" alt="" class="wp-image-588196" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Fruit and veg stall Borough Market on 27th August 2024 in London, United Kingdom. Borough Market is a retail food market and farmers market in Southwark. It is one of the largest and oldest food markets in London, with a market on the site dating back to at least the 12th century.  Mike Kemp | In Pictures | Getty Images</figcaption></figure>



The U.K.’s inflation rate rose sharply to 3% in January, coming in above analyst expectations, according to data released by the Office for National Statistics (ONS) on Wednesday.



Economists polled by Reuters had expected a reading of 2.8% in the twelve months to January.



Britain’s consumer price index (CPI) fell to a lower-than-expected 2.5% in December,&nbsp;with core price growth also slowing further.



Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by 3.7% in the 12 months to January, which was up from 3.2% in the previous month. Notably, the core services annual rate rose from 4.4% to 5.0%, the ONS said.



“Inflation increased sharply this month to its highest annual rate since March last year. The rise was driven by air fares not falling as much as we usually see at this time of year, partly impacted by the timing of flights over Christmas and New Year. This was the weakest January dip since 2020,” Grant Fitzner, the ONS’ chief economist, commented Wednesday.



“After falling this time last year, the cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals. Private school fees were another factor, as new VAT [a sales tax] rules meant prices rose nearly 13% this month,” he said, in comments on the X social media platform.



Responding to the latest data, U.K. Chancellor Rachel Reeves said that delivering economic growth and “getting more money in people’s pockets” were her priorities, while acknowledging that “millions of families are still struggling to make ends meet.”



The British pound was little changed against the dollar following the data release, trading at $1.2615.



<h2 class="wp-block-heading" id="h-sluggish-growth"><a></a>Sluggish growth</h2>



The U.K.’s inflation rate had hit a more than three-year low of 1.7% in September, but monthly prices have picked up since on the back of higher fuel costs and services fees rising faster than the price of goods.



Earlier in February, sluggish growth and a recent drop in inflation prompted the Bank of England to make its first interest rate cut of the year, bringing its benchmark rate down to 4.5%.



The central bank signaled further rate trims were coming but noted that higher global energy costs and regulated price changes are expected to push up headline inflation to 3.7% in the third quarter of 2025, “even as underlying domestic inflationary pressures are expected to wane further.” The BOE expects the inflation rate to fall back to the 2% target by 2027.



Along with listing its price growth outlook, the central bank also halved the U.K.’s economic growth forecast from 1.5% to 0.75% this year.



The latest leap in CPI inflation was no surprise, but it was larger than everyone expected, Ruth Gregory, deputy chief U.K. economist at Capital Economics, noted Wednesday.



“It’s no secret that higher energy prices will push CPI inflation further above 3% over the next 7 months. We doubt this will prevent the Bank from cutting rates further. Indeed, we still think CPI inflation will fall below 2% in 2026 as the fading of some temporary effects and the weak economy feed through to lower services inflation,” she said in emailed comments.



“The risk is that the rise in inflation proves more persistent and rates are cut more slowly than we expect, or not as far,” Gregory added.

108104180-1739952365535-gettyimages-2168418794-20240827_borough_market_014

UK inflation leaps to higher-than-expected 3% in January

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-820x547.jpeg" alt="" class="wp-image-588161" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man carrying a kite in the shape of the Chinese national flag walks along the Bund while buildings of Pudong’s Lujiazui financial district  in Shanghai, China Bloomberg | Bloomberg | Getty Images</figcaption></figure>



China is starting to see a rebound in its mergers and acquisition scene after years of decline as the government’s stimulus measures start to bear fruit, while pressure from Donald Trump’s tariffs is also driving industry consolidation.



In 2024, China’s M&amp;A activity was on course to log its fifth straight year of decline, until the final quarter of the year, which saw a sudden acceleration in activity. The value of deals conducted during that period jumped 78.5% to $129 billion from $72 billion in the previous quarter, data from Dealogic showed.



And deal-making is about to pick up more, according to industry watchers whom CNBC spoke to.



The uptick in deal flow in the fourth quarter of 2024 was in part fueled by stimulus efforts introduced by policymakers in late September, said Vivian Wong, head of M&amp;A Analytics at ION Analytics, which is under the same group as Dealogic. Those measures aimed to consolidate domestic industries in order to enhance competitiveness in China’s slowing economy, added Wong.



China’s M&amp;A volume has been trending downward since 2020. Furthermore, the total value of deals logged in 2024 is about 45% less than the $553 billion generated in 2020, according to data from Dealogic.



This was largely because of weak overall economic activity in China and the ensuing bearish sentiments, said Theodore Shou, chief investment officer at Skybound Capital, an alternative assets manager.



The conservative positioning of Chinese corporations also led to less appetite for private market transactions in the past couple of years, he added.



However, 2025 will “see significant merger and acquisition activities involving China,” Zhe Yu, a partner at Shanghai-based Zhong Lun Law Firm, which offers legal support for M&amp;A ventures and IPO deals in China, told CNBC.&nbsp;



<h2 class="wp-block-heading" id="h-a-hedge-against-trump-tariffs"><a></a>A hedge against Trump tariffs?</h2>



Apart from Beijing’s stimulus measures, the flurry of tariff threats before U.S. President Trump’s term and their eventual implementation are also a key driving force for Chinese companies to adapt by diversifying their supply chains and ensuring they have the means to do so, said Deloitte’s APAC M&amp;A Services Leaders Stanley Lah, who is also the firm’s deputy leader of financial advisory in China.



Trump signed an order imposing 10% tariffs against China on Feb. 1. They came into effect Feb. 4 and will apply on top of the existing tariffs of up to 25% on Chinese goods levied during his first presidency.



That development will nudge domestic companies toward consolidation as they look for alternative shipping routes to the U.S. that avoid China as a point of origin, as well as try to become more effective in global markets, Lah said.



“It’s something they need to do quickly, and buying is faster than building a green field,” he added, referring to building facilities and infrastructure from scratch.



This pressure is most keenly felt by small companies in China.



In the third quarter of 2024, China’s micro and small enterprises reported average revenue of 136,000 yuan ($18,700), marking a 4.8% decline compared with the same period in 2023, according to Peking University’s Centre for Enterprise Research’s most recent survey on MSEs. 



To stay afloat, many MSEs had to cut back on hiring and shrink their operations, among a slew of cost-cutting strategies, the survey said.



M&amp;A transactions also allow small companies to better compete on an international scale. For example, Chinese banks or security houses need to consolidate and attain a large-enough scale to prevent downsizing, said Ernst &amp; Young’s Asia-Pacific IPO Leader Ringo Choi.&nbsp;



China saw its biggest wave of rural bank mergers last year as smaller banks were plagued by weak loan growth and increasing bad loans, according to Reuters’ analysis of government data.



“It no longer makes economic sense for small players to reinvent the wheels again and again just to stay in the game and ultimately, they will not be able to afford that,” said Skybound Capital’s Shou. Chinese companies are competing “too forcefully” with each other, which is lowering their margins, he added.



Corporate consolidations also offer an attractive exit strategy for some of those companies, especially as filing an IPO in the Chinese stock markets becomes increasingly uncertain, Yu said.



<h2 class="wp-block-heading"><a></a>Fewer regulatory hurdles, more financial means</h2>



Last September, in a bid to enhance deal-making efficiency, the China Securities Regulatory Commission announced that it will simplify its approval processes and cut down the review time for qualified companies. It will also encourage firms to raise capital for their M&amp;A deals in phases.&nbsp;



Previously, deal-makers faced long approval periods and had to contend with extensive information disclosure demands that came with antitrust and data security concerns.



While antitrust laws and hurdles remain, merging filing requirements have relaxed significantly, Yu said. “Many transactions that would otherwise have been subject to merger filing clearance are no longer required to be filed.”



Interest rates in China are also likely to remain at current levels, which may keep M&amp;A costs at a reasonable level, he added.



Companies with a stronger balance sheet and cash piles also have the capacity to buy out firms in a weaker position as a form of investment, said Lah.



Bigger domestic companies are accumulating large reserves of cash, with Chinese-listed firms paying out a record 2.4 trillion yuan in dividends last year. Goldman Sachs estimates that Chinese companies’ cash distribution could hit $3.5 trillion yuan this year to notch a new high.



Big tech companies like Pinduoduo, a Chinese online retailer, currently have a lot of dry powder, which could go into dividend payouts, share buybacks and even M&amp;A, Ernst &amp; Young’s Choi observed.



<h2 class="wp-block-heading"><a></a>More domestic M&amp;A</h2>



A larger portion of the incoming M&amp;A deals will center around domestic transactions rather than cross-border ones, said Deloitte’s Lah, a sentiment echoed by Shou. Both believe that foreign interest in buying Chinese companies has yet to recover.



Moreover, cross-border M&amp;A activities in the high-tech sector is unlikely because of geopolitical factors, said Yu.



Still, Chinese companies may bail out failing foreign peers by merging with or acquiring them, said Shou.



Domestically, some Chinese companies may opt for joint ventures in attempts to expand to new markets, Shou said. The “really hot sectors” which are doing well, such as technology and green energy, will see money coming in, according to Lah.



Similarly, Zhong Lun Law Firm’s Yu sees many potential consolidation opportunities in industries related to new energy, such as solar and wind energy and nickel mining, among others.



Less competitive industries and companies could also let themselves be bought out as a means to survive, the industry watchers whom CNBC spoke to suggested.



One sector that will experience more deals is “fragmented industries with struggling players,” Lah said, because it’s “difficult to make profits as a small company.”



“They need a bigger scale,” or merge with a company with “bigger performance to survive in this new normal,” he said

108103308-1739836131646-gettyimages-492558314-CHINA_ECONOMY

China deal-making ramps up after years of decline as domestic companies prepare for Trump tariffs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103169-1739765612565-gettyimages-2197304605-CHINA_BRUNEI-820x461.jpeg" alt="" class="wp-image-587350" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103169-1739765612565-gettyimages-2197304605-CHINA_BRUNEI-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103169-1739765612565-gettyimages-2197304605-CHINA_BRUNEI-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103169-1739765612565-gettyimages-2197304605-CHINA_BRUNEI-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103169-1739765612565-gettyimages-2197304605-CHINA_BRUNEI-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103169-1739765612565-gettyimages-2197304605-CHINA_BRUNEI-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108103169-1739765612565-gettyimages-2197304605-CHINA_BRUNEI.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">BEIJING, CHINA &#8211; FEBRUARY 6: Chinese President Xi Jinping (C) speaks during a bilateral meeting with Brunei Sultan Hassanal Bolkiah (not pictured) at the Great Hall of the People on February 6, 2025 in Beijing, China.   Andres Martinez Casares | Getty Images News | Getty Images</figcaption></figure>



Chinese President Xi Jinping delivered a speech at a symposium with prominent entrepreneurs on Monday, according to state media, signaling support for the private sector at a time when the country’s economy has been facing several headwinds.



Xi’s presence at the symposium sends a “very clear signal of top-level support” to the private sector entrepreneurs, Peiqian Liu, Asia economist at Fidelity International told CNBC, “this will likely reignite the animal spirit and optimism about renewed growth momentum in China.”



“It could potentially be even more powerful than fiscal stimulus, should policymakers show more decisive support towards the development of tech sector in China,” Liu added.



Beijing has sought to shore up its economy dragged down by lackluster domestic consumption, a prolonged real estate slump and external headwinds such as tariffs on its exports.



The meeting could mark “a symbolic turning point for Chinese tech sector after years of heightened scrutiny,” said Lynn Song, chief economist at LNG, emphasizing the timing of this meeting underscored Beijing’s urgency to cheer up the private sector amid economic malaise and external tariff risks.



It could mean that “the regulatory overhang that we have had for the past two years or so is at an end,” said Andy Maynard, managing director and head of equities at China Renaissance.



Alibaba’s founder Jack Ma was among the entrepreneurs present at the meeting, according to a video clip released by Chinese state media.



The outspoken businessman has mostly stayed out of the public eye since Chinese authorities scuttled a blockbuster initial public offering of Alibaba Group affiliate Ant Group in November 2020, after his public criticism of the country’s regulatory system enraged Beijing.



Ma’s return to the limelight could reinforce the expectation that Beijing is softening its approach on large tech companies, Maynard said.



Other entrepreneurs who attended the meeting included Ren Zhengfei, founder and chief executive officer of Huawei Technologies, Lei Jun, founder and CEO of consumer electronics maker Xiaomi Corp and Wang Xing, founder of food delivery giant Meituan.



Beijing kicked off a regulatory storm against the country’s large technology companies in late 2020 over concerns that they were growing too large and powerful.



While the symposium may not signify “a 180-degree turn” in China’s control over the direction of its economic policy, it does reflect Beijing’s recognition of the significant role that China’s private sector can play in supporting growth and boosting technical capabilities in rivaling the U.S., Alfredo Montufar-Helu, head of China Center at think tank The Conference Board, told CNBC.



Mainland China’s CSI 300 index was little changed following the news.



The Hang Seng tech index, which had jumped over 5% Friday on media reports of the meeting, widened losses to drop over 2% following the meeting.



Chinese startup DeepSeek’s release of a cutting-edge AI model has helped drive a rally in the country’s stock market in the past month, prompting calls for an upward rerating of equities. The low-profile founder of DeepSeek, Liang Wenfeng, was previously reported to have been invited to the meeting.

108103169-1739765612565-gettyimages-2197304605-CHINA_BRUNEI

China’s Xi speaks to entrepreneurs in a rare meeting, signaling support for private sector

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3335" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/BDRBXAEV4NJEFCJVVVLJFQRNLE.avif" alt="" class="wp-image-586232"/><figcaption class="wp-element-caption">Photo: via Reuters</figcaption></figure>



New Delhi and Washington will work to more than double bilateral trade to $500 billion by 2030, Indian Prime Minister Narendra Modi said at a joint press conference with U.S. President Donald Trump on Thursday.



Speaking at the conclusion of the two leaders’ meeting in Washington, Modi also said that “Our teams will work on concluding very soon, a mutually beneficial trade agreement.”



Trump acknowledged India’s recent move to reduce tariffs on select imports and said he would begin talks on disparities on trade and hoped to reach an agreement.



The remarks came hours after Trump signed a&nbsp;<a href="https://www.cnbc.com/2025/02/13/trump-reciprocal-tariffs-news-conference.html">presidential memorandum outlining his plan to impose</a>&nbsp;“reciprocal tariffs” on foreign nations, including India.



The U.S. would simply charge the same tariff rates that India charges, Trump said, while the trade deficit with India could be addressed with the sale of oil and gas.



<a href="https://www.wto.org/english/res_e/statis_e/daily_update_e/tariff_profiles/in_e.pdf" target="_blank" rel="noreferrer noopener">India’s simple average</a>&nbsp;tariff on countries with the most-favored-nation status stands at 17%,&nbsp;<a href="https://www.wto.org/english/res_e/statis_e/daily_update_e/tariff_profiles/US_e.pdf" target="_blank" rel="noreferrer noopener">compared with the U.S. that levies 3.3%</a>. The U.S. enjoys MFN status with most major economies.



U.S. total goods trade with India is estimated at&nbsp;<a href="https://ustr.gov/countries-regions/south-central-asia/india" target="_blank" rel="noreferrer noopener">$129 billion in 2024</a>, according to the Office of the U.S. Trade Representative. India’s surplus with the U.S., its&nbsp;<a href="https://tradestat.commerce.gov.in/eidb/iecnttopn.asp" target="_blank" rel="noreferrer noopener">second-largest trading</a>&nbsp;partner,&nbsp;<a href="https://www.census.gov/foreign-trade/balance/c5330.html" target="_blank" rel="noreferrer noopener">reached $45.7 billion last year.</a>&nbsp;



The U.S. will increase its military sales to India starting this year and ultimately provide F-35 fighter jets to the Asian ally, Trump said at the briefing, in an effort to confront what he called “the threat of radical Islamic terrorism.” India is&nbsp;<a href="https://www.sipri.org/sites/default/files/2024-03/fs_2403_at_2023.pdf" target="_blank" rel="noreferrer noopener">the world’s biggest defense equipment importer</a>.



Modi said India and the U.S. would also work together on developing artificial intelligence and semiconductors while focusing on establishing strong supply chains for strategic minerals.



The lofty target of $500 billion in trade could be achievable, Raghuram Rajan, professor of finance at University of Chicago Booth School of Business and former Reserve Bank of India governor, told CNBC’s “<a href="https://www.cnbc.com/asia-squawk-box/">Squawk Box Asia</a>.”



Besides shifting away from Russia — India’s key defense supplier — toward the U.S. for arms, India could also increase its purchases of liquified natural gas from American manufacturers, Rajan added.



The Trump-Modi meeting had the threat of U.S. tariffs looming large.



“We are, right now, a reciprocal nation&#8230; We’re going to have whatever India charges, we’re charging them. Whatever another country charges, we’re charging them. So it’s called reciprocal, which I think is a very fair way,” the U.S. president said at the press briefing.



The president said that the reciprocal tariffs will not take effect immediately as his administration works on determining the appropriate tariff levels for each affected country.



Trump has already slapped tariffs on China, Canada and Mexico as well as global tariffs on imports of steel and aluminum. Trump’s tariffs on Canada and Mexico are currently on pause after both countries pledged to crack down on illegal drug trafficking at their respective borders with the U.S.



Despite the encouraging tones from the&nbsp;meeting, signs of friction remain in the U.S.-India relation, said Daniel Balazs, a research fellow at the S. Rajaratnam School of International Studies, such as the illegal immigration issue and India’s close ties with Russia.



“The latter, in particular, is unlikely to go away anytime soon and will probably remain a sore point between the two sides,” he said.

BDRBXAEV4NJEFCJVVVLJFQRNLE

U.S. and India to double bilateral trade in five years, Prime Minister Modi says, as Trump tariffs loom

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108100827-17392963002025-02-11t174938z_1240587498_rc2fscadk7n1_rtrmadp_0_openai-elon-musk-820x547.jpeg" alt="" class="wp-image-585412" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108100827-17392963002025-02-11t174938z_1240587498_rc2fscadk7n1_rtrmadp_0_openai-elon-musk-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108100827-17392963002025-02-11t174938z_1240587498_rc2fscadk7n1_rtrmadp_0_openai-elon-musk-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108100827-17392963002025-02-11t174938z_1240587498_rc2fscadk7n1_rtrmadp_0_openai-elon-musk-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108100827-17392963002025-02-11t174938z_1240587498_rc2fscadk7n1_rtrmadp_0_openai-elon-musk-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108100827-17392963002025-02-11t174938z_1240587498_rc2fscadk7n1_rtrmadp_0_openai-elon-musk-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108100827-17392963002025-02-11t174938z_1240587498_rc2fscadk7n1_rtrmadp_0_openai-elon-musk-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Sam Altman, CEO of OpenAI, speaks with French President Emmanuel Macron at Station F, during an event on the sidelines of the Artificial Intelligence Action Summit in Paris, France, Feb. 11, 2025. Aurelien Morissard | Via Reuters</figcaption></figure>



PARIS — Music was blaring and people were cheering at the Artificial Intelligence Action Summit in Paris on Monday as French President Emmanuel Macron declared France is “back in the AI race.”



The bold call comes after Macron touted a 109 billion euro ($112.8 billion) investment in AI in the country. But it also underscores Europe’s desire, led by France, to be a part of the conversation around AI leadership and innovation that has so far been dominated by the U.S. and China.



Last month, America’s $500 billion Stargate announcement made headlines globally, followed by DeepSeek’s AI model, which sent shock waves across financial markets and highlighted China’s ability to keep apace with U.S. innovation.



Europe has long been seen by its critics as a place that has regulated the tech industry too heavily to the detriment of innovation.



Though that image has not entirely been changed, there are some in the technology industry who think Europe is moving in the right direction.



“As a European region, at least, we are starting to see global leaders emerge, and that’s the thing we really need,” Victor Riparbelli, CEO of AI video company Synthesia, told CNBC in an interview on Monday.



There are a number of key companies in Europe, ranging from self-driving technology startup Wayve in the U.K. to OpenAI rival Mistral in France.



“So I think it’s great that we invest more in infrastructure. I don’t think it’s the sole solution to the problem. &#8230; But what I think is really great is that there’s political will to actually do something,” Riparbelli added.



<h2 class="wp-block-heading" id="h-fork-in-the-road"><a></a>‘Fork in the road’</h2>



Last year, economist and politician Mario Draghi released a report that urged more investment in the European Union in order to boost competitiveness.



Draghi’s report noted that there are innovative ideas, but startups are “failing to translate innovation into commercialisation, and innovative companies that want to scale up in Europe are hindered at every stage by inconsistent and restrictive regulations.”



Chris Lehane, chief global affairs officer at OpenAI, told CNBC on Monday that based on his experience at the AI Action Summit, there is tension between Europe at the EU level and the countries within it.



“You can get this sense that there’s almost this fork in the road, maybe even a tension right now between a Europe at the EU level that is looking at a fairly significant, heavier regulatory approach. And then some of the countries, a France, a Germany, a UK, though not technically the EU, certainly European, they’re looking to maybe go in a little bit of a different direction that actually wants to embrace the innovation,” Lehane told CNBC.



He said that previous AI summits hosted by the U.K. and South Korea have focused on the safety around AI, but the Paris edition has a change of tone.



“I think this conference, you’re beginning to see maybe a different definition or consideration, that perhaps the bigger risk right now is missing out on the opportunity,” Lehane added.



<h2 class="wp-block-heading"><a></a>Europe the ‘referee’</h2>



Still, the image of Europe as a burdensome place for tech regulation has not been shaken.



The EU’s AI Act was the first major law in the world governing artificial intelligence to go into effect in 2024. It has been criticized by companies as well as individual countries such as France which have said that the legislation could stifle innovation.



“One of the metaphors I sometimes use you look at AI as a World Cup football match between the U.S. and China. And if all Europe is trying to do is be the referee, there’s two problems. One, they never win, and two, no one really likes the referee,” Reid Hoffman, the co-founder of LinkedIn and an investor at venture capital firm Greylock, told CNBC on Monday.



Christel Heydemann, the CEO of telecommunications firm Orange, told CNBC in an interview on Tuesday that there is too much regulation in Europe.



“So that’s that’s slowing us down, especially when you think about the potential of the European market,” Heydemann said.



She did, however, strike an optimistic tone on Europe’s position on AI.



I don’t think, in the end, it’s a race between U.S. and China. Actually, the president of the European Commission has been very clear, Europe wants to be a continent of AI, and the race is not over yet,” Heydemann added.

108100827-17392963002025-02-11t174938z_1240587498_rc2fscadk7n1_rtrmadp_0_openai-elon-musk

Europe wants to be part of the AI race against China and the U.S. — and shake off its anti-innovation image

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3000" height="2000" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/M6LR22CX2ZL6BF5FULJQBJKP7I.avif" alt="" class="wp-image-585028"/><figcaption class="wp-element-caption">The MOODY&#8217;S logo and a decreasing stock graph are seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



LONDON, Feb 10 (Reuters)&nbsp;&#8211;&nbsp;The triple-A ratings of the World Bank and other top multilateral lenders would be at risk if U.S. President Donald Trump slashed his country&#8217;s support for them, credit rating agency Moody&#8217;s&nbsp;has&nbsp;warned,&nbsp;adding such a move was unlikely.



Last week, Trump signed an Executive Order to review U.S. government support to all international intergovernmental organisations of which it is a member and to withdraw from some United Nations organisations.



&#8220;The US is a key shareholder in a number of rated MDBs (multilateral development banks), hence it would be credit negative if it materially reduced its commitment to them,&#8221; Moody&#8217;s said in a report published on Monday.



The U.S. is the single biggest shareholder in the World Bank Group&#8217;s institutions, with a 16.4% share in its largest, the International Bank for Reconstruction and Development (IBRD), and a 19% stake in International Development Association (IDA) which provides concessional loans and grants to the world&#8217;s poorest countries.



The World Bank declined to comment on the Moody&#8217;s note.



It has an even higher 30% share in the Inter-American Development Bank in Latin America, a 15.6% stake in the Asian Development Bank and 10% in the European Bank of&nbsp;Reconstruction&nbsp;of Development that was set up in the wake of the Cold War.



The Trump-ordered review of Washington&#8217;s support for development banks is due to take roughly six months.



The set-ups of most of the institutions allow for an &#8220;orderly withdrawal&#8221; of a shareholder.



Moody&#8217;s said it was &#8220;unlikely that the U.S. would take drastic steps regarding its participation in key MDBs,&#8221; for several reasons, including the loss of influence over those institutions&#8217; lending policies.



In&nbsp;the World Bank&#8217;s case, the U.S. has paid in capital of around $3.7 billion in the IBRD and has callable capital commitments of $49.2 billion, compared to disbursed and outstanding IBRD loans and guarantees of around $263 billion.



The average maturity of the IBRD&#8217;s loan portfolio is 8.4 years although some loans are for up to 50 years meaning that, &#8220;the US would remain on the hook for IBRD&#8217;s lending portfolio for many years to come,&#8221; Moody&#8217;s said.



A withdrawal would also open the door for other countries to fill the void, something unlikely to fit with Trump&#8217;s geopolitical strategy.



&#8220;Those shareholders in particular include China, which has long coveted a larger share in the IBRD, a desire strongly opposed by consecutive U.S. governments,&#8221; Moody&#8217;s said.



(Reporting by Marc Jones, additional reporting by Andrea Shalal in Washington; editing by Libby George, Toby Chopra and Nick Zieminski)

M6LR22CX2ZL6BF5FULJQBJKP7I

Moody’s warns World Bank’s triple-A rating threatened if Trump pulls support

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108099828-1739169444276-gettyimages-2163265359-raa-arcelorm240727_npbCh-820x462.png" alt="" class="wp-image-584668" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108099828-1739169444276-gettyimages-2163265359-raa-arcelorm240727_npbCh-820x462.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108099828-1739169444276-gettyimages-2163265359-raa-arcelorm240727_npbCh-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108099828-1739169444276-gettyimages-2163265359-raa-arcelorm240727_npbCh-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108099828-1739169444276-gettyimages-2163265359-raa-arcelorm240727_npbCh-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108099828-1739169444276-gettyimages-2163265359-raa-arcelorm240727_npbCh.png 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The ArcelorMittal steel production plant in Ghent, Belgium, on July 27, 2024.  Jonathan Raa | Nurphoto | Getty Images</figcaption></figure>



The excitement over artificial intelligence and U.S. President Donald Trump’s perceived friendliness to the stock market buoyed investor sentiment as recently as December. In 2025, it seems those animal spirits have somewhat evaporated.



Any time Trump brings up tariffs, investors have been reacting badly (for good reason). His threat of reciprocal tariffs on Friday — that is, imposing on other countries the same degree of duties that they place on the U.S. — sent stocks tumbling. New tariffs on steel and aluminum, which Trump says he will announce on Monday, are likely to sink stocks further.



Likewise, AI, the engine that drove stocks higher in 2024, seems to present investors with more uncertainty than opportunities this year. DeepSeek’s claim that its training required just a fraction of the billions of dollars that U.S. AI models suck up have thrown Big Tech’s investments — which will amount to more than $300 billion in 2025 — as well as their stock valuation into question.



While the main characters of the stock market remain the same as they were in December, they are steering markets in a different direction.



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



New steel and aluminum tariffs Trump will announce on Monday additional 25% tariffs on all aluminum and steel imports into the U.S., according to comments to reporters on Sunday. Those will come on top of already existing levies. In a separate steel-related development, Trump said on Friday at a news conference with Japanese Prime Minister Shigeru Ishiba that Nippon Steel will invest in U.S. Steel, giving up its attempt to buy it. 



EV price cuts in China amid mixed price signals Consumer prices in China spiked 0.5% in January on an annual basis, according to the country’s National Bureau of Statistics on Sunday. The figure is higher than the previous month’s 0.1% increase and the 0.4% expected in a Reuters poll. However, producer prices dropped 2.3% in January year on year — the same degree as December and steeper than the 2.1% estimate — for their 28th straight month of declines. Meanwhile, electric car companies in China are offering discounts and interest-free loans to boost sales amid a hotly contested industry and sluggish consumer sentiment in the country.



Uneven report for U.S. labor market The U.S. economy added 143,000 jobs in January, the Bureau of Labor Statistics reported Friday. Nonfarm payrolls for the month dropped from an upwardly revised 307,000 in December was and below the Dow Jones 169,000 estimate. However, the unemployment rate edged down to 4% from 4.1% the prior month. Average hourly earnings in January were stronger than expected, coming in at 0.5% for the month compared with the 0.3% forecast.



Asian markets rise as U.S. slumps All major U.S. indexes ended last week lower after a losing day on Friday, when the S&amp;P 500 lost 0.95%, the Dow Jones Industrial Average slid 0.99% and the Nasdaq Composite fell 1.36%. Stocks retreated after Trump mentioned the possibility of reciprocal tariffs on trade partners. By contrast, Asia-Pacific markets started the week higher. Hong Kong’s Hang Seng Index added around 1.8%. Singapore’s Straits Times Index hit an all-time high, lifted by shares of Singapore’s largest bank DBS Group Holdings, which jumped 2.6% and touched a new record.



Spending billions on artificial intelligence SoftBank is close to finalizing a $40 billion primary investment in OpenAI at a $260 billion pre-money valuation, sources told CNBC’s David Faber. The cost efficiency of DeepSeek doesn’t seem to deter Big Tech: Meta, Amazon, Alphabet and Microsoft have announced plans to spend a combined $320 billion on AI and data centers. Demis Hassabis, the CEO of Google DeepMind, said on Friday that while DeepSeek is “the best work” he’s seen from China, “there’s no actual new scientific advance.”



[PRO] Inflation in focus this week The consumer and producer price indexes for January, out Wednesday and Thursday respectively, will be especially important to investors. January’s jobs report showed a higher-than-anticipated wage growth and the University of Michigan consumer survey revealed that respondents increased their expectations of the inflation rate a year to 4.3%, a one percentage point jump from January.



<h2 class="wp-block-heading" id="h-and-finally"><a></a>And finally&#8230;</h2>



The world isn’t close to breaking free from coal — in some countries, demand for it is surging



“Nothing can destroy coal,” U.S. President Donald Trump&nbsp;said at the recent World Economic Forum. Statistics seem to prove him right. U.S. exports of coal&nbsp;have been rising steadily to satisfy growing global demand — which is expected to have breached another high of 8.77 billion tonnes in 2024 and will remain at similar levels until 2027, the&nbsp;International Energy Agency&nbsp;predicted. “The global shift away from coal remains challenging, largely driven by rising demand in Asia, even as Europe and the U.S. see significant declines in coal consumption,” said Dorothy Mei, project manager for Global Energy Monitor’s Global Coal Mine Tracker.

108099828-1739169444276-gettyimages-2163265359-raa-arcelorm240727_npbCh

Enthusiasm over Trump and AI appears to be waning

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108098965-1738890135390-gettyimages-2197382389-city_bank-10-06-02-2025-820x461.jpeg" alt="" class="wp-image-583564" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108098965-1738890135390-gettyimages-2197382389-city_bank-10-06-02-2025-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108098965-1738890135390-gettyimages-2197382389-city_bank-10-06-02-2025-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108098965-1738890135390-gettyimages-2197382389-city_bank-10-06-02-2025-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108098965-1738890135390-gettyimages-2197382389-city_bank-10-06-02-2025-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108098965-1738890135390-gettyimages-2197382389-city_bank-10-06-02-2025-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108098965-1738890135390-gettyimages-2197382389-city_bank-10-06-02-2025.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Bank of England on 6 Feb. 2025, in London, England. Richard Baker | In Pictures | Getty Images</figcaption></figure>



On Friday, the Reserve Bank of India trimmed its repo rate by 25 basis points. A day prior, the Bank of England lowered interest rates by 25 basis points, following the European Central Bank’s cut of the same amount on Jan. 30.



Many economies seem to be settling into a lower-rate environment as policymakers look to boost economic growth. That’s in stark contrast with the U.S. — it’s unclear if the U.S. Federal Reserve would even deliver on its two rate cuts in 2025, forecast in December, given the uncertainties over the economic impact of U.S. President Donald Trump’s policies. Moreover, Trump seems to have backed off from applying pressure on the Fed.



Ahead of Trump’s inauguration, the&nbsp;U.S. dollar began strengthening and hit its highest level in more than two years, as measured by the U.S. dollar index. That’s already affected companies such as Amazon, which blamed the currency for weighing down its expected revenue in the current quarter.



The U.S. might have an edge over other economies and stock markets for now, but an edge can cut both ways.



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



India’s first rate cut in nearly five years The Reserve Bank of India cut its repo rate by 25 basis points to 6.25%, Governor Sanjay Malhotra said in a livestreamed address Friday. The move, which was expected by economists, was the first time in nearly five years the central bank has lowered rates. The RBI forecast real economic growth to come in at 6.4% for the current fiscal year, the country’s lowest in four years, and 6.7% for fiscal year 2025-26.



Bank of England trims rates The Bank of England lowered its benchmark interest rate by 25 basis points to 4.5%, its first cut of the year. All members of the monetary policy committee voted to lower rates, but two out of nine had voted for a larger cut of 50 basis points. Central bank governor Andrew Bailey said he expects more cuts this year. The BOE also halved its growth forecast for the U.K.’s economy in 2025 to 0.75% from 1.5%.



Disappointing guidance from Amazon Amazon shares fell more than 4% after giving disappointing revenue guidance for the current quarter, citing difficulties posed by a strong U.S. dollar. It also announced plans to spend $100 billion in capital expenditures in 2025, mostly on artificial intelligence infrastructure. The tech giant beat earnings and revenue expectations for the fourth quarter — and is poised to surpass Walmart as the S&amp;P 500 company with the highest quarterly revenue.



Consecutive gains for S&amp;P 500 On Thursday, the S&amp;P 500 advanced 0.36% for its third consecutive winning day, while the Nasdaq Composite climbed 0.51%. The Dow Jones Industrial Average, however, lost 0.28%. Japan’s Nikkei 225 retreated around 0.6% after the country’s household spending in December unexpectedly jumped on an annual basis, while India’s Nifty 50 was around the flatline after the RBI trimmed interest rates.



Trump’s focusing on yields, not rates The Trump administration is focusing on using fiscal policy to keep the 10-year Treasury yield low and isn’t “calling for the Fed to lower rates,” Treasury Secretary Scott Bessent said in a Wednesday interview with Fox News. That marks a shift from Trump’s original plan to “demand that interest rates drop immediately.”



[PRO] IBM outperforms Nvidia Not Nvidia, not Apple and not Amazon — the best-performing stock in the Dow over the past three months has been IBM, which climbed 27%. However, the tech company needs to do more in the field of artificial intelligence for its stock to continue performing well, according to one chief investment officer.



<h2 class="wp-block-heading" id="h-and-finally"><a></a>And finally&#8230;</h2>



 How Calvin Klein and Tommy Hilfiger got caught in Trump’s trade war with China



China has blacklisted the owner of Calvin Klein and Tommy Hilfiger, which could force the company to shut down stores and manufacturing in the country, in an early repercussion of Trump’s trade war. While China’s Ministry of Commerce began investigating PVH September for allegedly refusing to source cotton from the Xinjiang region, which has become notorious for its Uyghur detention camps, Beijing officially placed the company on its list of “unreliable entities” on Tuesday.

108098965-1738890135390-gettyimages-2197382389-city_bank-10-06-02-2025

Global central banks are lowering rates — the Fed might not be as inclined

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108086939-17369536122025-01-15t144123z_1142336854_rc2u5cau9h9e_rtrmadp_0_usa-china-820x461.jpeg" alt="" class="wp-image-583160" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108086939-17369536122025-01-15t144123z_1142336854_rc2u5cau9h9e_rtrmadp_0_usa-china-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108086939-17369536122025-01-15t144123z_1142336854_rc2u5cau9h9e_rtrmadp_0_usa-china-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108086939-17369536122025-01-15t144123z_1142336854_rc2u5cau9h9e_rtrmadp_0_usa-china-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108086939-17369536122025-01-15t144123z_1142336854_rc2u5cau9h9e_rtrmadp_0_usa-china-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108086939-17369536122025-01-15t144123z_1142336854_rc2u5cau9h9e_rtrmadp_0_usa-china-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108086939-17369536122025-01-15t144123z_1142336854_rc2u5cau9h9e_rtrmadp_0_usa-china.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Chinese and U.S. flags flutter near The Bund, before U.S. trade delegation meet their Chinese counterparts for talks in Shanghai, China July 30, 2019. Aly Song | Reuters</figcaption></figure>



BEIJING — China has toughened its tone following the Trump administration’s opening salvo of trade tariffs.



“In the face of one-sided acts of bullying, [China] will definitely take necessary measures to firmly protect its own rights and interests,” Chinese Ministry of Commerce Spokesperson He Yongqian told reporters Thursday, according to a CNBC translation.



She added that China would not provoke trade disputes and remained ready to resolve problems through discussions. Beijing’s official commentary previously emphasized the willingness to negotiate.



China’s Ministry of Foreign Affairs Spokesperson Lin Jian struck conveyed a similar mood on Wednesday.



“China firmly deplores and opposes the move of the U.S. to levy a 10 percent additional tariff on Chinese imports under the pretext of the fentanyl issue,” he said, according to an official English translation. “The measures China has taken are what’s needed for safeguarding our legitimate rights and interests.”



CNBC has reached out to the U.S. State Department for comment.



The official remarks came just days after the U.S. announced 10% tariffs on Chinese goods, to which the Chinese side on Tuesday retaliated with its own duties of up to 15% on U.S. liquefied natural gas and select products, starting Feb. 10.



The U.S. also halted a so-called de minimis exemption, making it more expensive for Chinese e-commerce merchants to ship products directly to U.S. consumers.



Ministry of Commerce spokesperson He on Thursday urged the U.S. to create a “fair and predictable” environment for cross-border e-commerce.

International

China’s factory activity growth hits 3-month high in February, as millions return to work after holidays

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Most EU grain crops in good shape but moisture risks linger

Prosus to buy Just Eat to create a European food delivery ‘champion’

China backs Trump’s Ukraine peace bid at G20 as US allies rally behind Zelenskiy

UK inflation leaps to higher-than-expected 3% in January

China deal-making ramps up after years of decline as domestic companies prepare for Trump tariffs

China’s Xi speaks to entrepreneurs in a rare meeting, signaling support for private sector

U.S. and India to double bilateral trade in five years, Prime Minister Modi says, as Trump tariffs loom

Europe wants to be part of the AI race against China and the U.S. — and shake off its anti-innovation image

Moody’s warns World Bank’s triple-A rating threatened if Trump pulls support

Enthusiasm over Trump and AI appears to be waning

Global central banks are lowering rates — the Fed might not be as inclined

China says will protect its own interests in face of U.S. ‘bullying’

News Tips

Advertise With Us

International

China’s factory activity growth hits 3-month high in February, as millions return to work after holidays

China vows to retaliate as necessary after Trump threatens another 10% tariff hike

Debt crisis hits new highs in developing nations, relief deal needed, says UN

Vitol, Glencore win $380 million award in Nigerian LNG litigation

Shell expects 60% rise in global LNG demand by 2040

Most EU grain crops in good shape but moisture risks linger

Prosus to buy Just Eat to create a European food delivery ‘champion’

China backs Trump’s Ukraine peace bid at G20 as US allies rally behind Zelenskiy

UK inflation leaps to higher-than-expected 3% in January

China deal-making ramps up after years of decline as domestic companies prepare for Trump tariffs

China’s Xi speaks to entrepreneurs in a rare meeting, signaling support for private sector

U.S. and India to double bilateral trade in five years, Prime Minister Modi says, as Trump tariffs loom

Europe wants to be part of the AI race against China and the U.S. — and shake off its anti-innovation image

Moody’s warns World Bank’s triple-A rating threatened if Trump pulls support

Enthusiasm over Trump and AI appears to be waning

Global central banks are lowering rates — the Fed might not be as inclined

China says will protect its own interests in face of U.S. ‘bullying’

News Tips

Advertise With Us

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