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Showing posts with label Tariffs. Show all posts
Showing posts with label Tariffs. Show all posts

Wednesday, July 2, 2025

Powering down to keep the lights on

 

Sigh of relief: Habsah showing her electricity bill at her house in Gertak Sanggul. — LIM BENG TATT/The Star

Many using less electricity as new tariffs loom

PETALING JAYA: Many consumers are taking steps to manage their electricity bills with the implementation of the new tariff structure by the government.

For example, many homeowners are considering having solar photo­voltaic (PV) systems installed on their roofs, while others are looking at the “Time of Use” scheme, which offers lower rates during off-peak hours, now defined as starting from 10pm to 2pm on weekdays, and the entire day on weekends.

Under the new tariff announced by the Energy Commission, domes­tic consumers using less than 1,000kWh (kilowatt-hours) per month will also continue to enjoy subsidies, effective yesterday.

ALSO READ: Brace for price hikes across the board, consumers told

In Johor Baru, sales operations executive Ereena Karen Lim Abdullah, 47, and her husband are thinking about rooftop PV.

“My husband and I are thinking of installing solar panels, but we are unsure whether it is possible to do so at our apartment,” she said, adding that she would raise the matter with the building management soon.

“I used to pay around RM100 for electricity monthly but it had crept up to RM150 even though it is just me and my husband living in our apartment without much changes to our routine.”

ALSO READ: ‘We may have no choice but to hike prices’

Events planning manager Evelyn Lee, 34, said she was hoping to apply for the newly expanded Time of Use (ToU) tariff as soon as possible since it matches her lifestyle.

“My husband and I are seldom at home during the day, so it’s perfect for us since we are typically home only by 10pm.

“We also like to spend our weekends at home together, just relaxing with our dogs with the air conditioning on, so it makes sense,” said Lee, who lives in Puchong.

CLICK TO ENLARGECLICK TO ENLARGE

In Seremban, Tong Sim Old Folks Home secretary Jessie Chan said they had already been cutting back usage before the new tariffs.

“The 18 elderly and special needs folks at the centre have been told to cut down (on their use), resulting in our monthly bill going down slightly from the over RM400 previously,” she said.

Ramesh Patel, who runs the Vivekananda Home in Rembau, has also told the children under his care to start conserving.

“We went from switching on four lights throughout the night previously, to only one now to further reduce the monthly bill which totals about RM800.”

Retiree N. Manimaran from Perak said he would start consolidating his chores.

“We now do the laundry only once every two days, while clothes are ironed once per week. I’m also cutting down the hours the air conditioner is on from six to four,” said the 67-year-old.

Father-of-four Wan Fahmi Ahmad said getting his household to change their habits would be difficult as they do not know how the new tariff structure would affect their bill.

“We are used to using around 1,500kWh to 2,000kWh, and paying over RM1,000 every month, so convincing them will be hard, especially if our bill increases only by a small amount,” the 51-year old pilot said.

Wan Fahmi, who lives in Putrajaya, added that he would consider the ToU scheme if his bill spiked significantly.

Likewise, Halimatul Abdul Adib, 42, is also adopting a wait-and-see stance.

“I don’t think I will see any significant rise in my bill, though I will wait for a few billing cycles so I can make a better comparison before doing anything.”

In George Town, pensioner Habsah Sulaiman, 70, said the new tariff helped her family.

“I usually use under 300kWh a month or an average of RM150, so it is good that the government is keeping the subsidy,” said Habsah, who lives with her son and his family, including three children.

Technician Kevin Wang, 26, said while the new tariff would support efforts to reduce carbon emissions, affordability remains a key concern.

“I am all for a greener future. But any transition must be gradual, especially for middle-income families like mine.

“The government or utility providers can introduce targeted rebates or energy-efficiency incen­­tives to ease the impact.”

The Light Hotel general manager Raj Kumar said it was too early to predict whether the new tariff would impact room rates.

“We are also actively exploring cost-saving measures such as solar PV,” he said, while stressing the importance of finding a balanced solution that protects both consumers and businesses.

“It is a tough time for everyone, and we do not believe in simply passing every cost to the customer,” Raj said.

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Sunday, May 4, 2025

Trump’s tariff fight with Xi reveals China’s great divide

 

Going strong: China has become less reliant on American consumers since Trump’s first trade war in 2018. — Reuters

HOW does an escalating US-China trade war affect people’s well-being? In China, it depends on who you ask.

Some are energised by the fight. Electric-vehicle makers are in hyperdrive, pushing out luxury new models, self-driving features and battery-charging technologies that allow drivers to recharge almost as fast as filling a petrol tank. Instead of selling cars to Americans, the likes of BYD are taking on Tesla in growth regions such as South-east Asia.

There’s also talk of an “engineer dividend” – credit to President Xi Jinping for his focus on higher education in sciences. The success of DeepSeek’s reasoning model, released in late January, gave rise to a realisation that China is not just a manufacturing powerhouse whose status is being challenged by President Donald Trump’s tariffs. Rather, Beijing may have found a fresh growth model. It can grab market share in software services, which the US excels at. Almost every week, Chinese tech firms have been releasing new artificial intelligence models and applications.

In part because of a stock market rebound, luxury home sales in Shanghai are booming. Property markets in tech hubs such as Hangzhou and Shenzhen are also seeing a revival, a welcoming reprieve after a four-year downturn.

After all, China has become less reliant on American consumers since Trump’s first trade war in 2018. Exports to the US accounted for just 15% of the total in 2024, versus 20% a decade earlier. The economy will shrink by only about 3%, even if the entire trading route to the US gets wiped out.

Beneath that stoic defiance, however, are genuine concerns about how to make a living, especially among blue-collar workers. A decline in exports, until now a rare bright spot in an otherwise anaemic economy, will only create more competition for low-skilled jobs. Already, demand for their labour is diminishing due to factory automation and the end of a decade-long property boom. In 2024, the manufacturing and construction sectors absorbed just over 40% of migrant workers, versus more than half a decade earlier.

Apparel is the third-largest category of US imports from China, after communication devices and electronic equipment. On average, the textile industry hires more than 25 people for every one million yuan (RM589, 846) in gross domestic product generated. About 16 million jobs could be lost thanks to Trump’s tariffs, according to Goldman Sachs Group estimates.

What these displaced might do next matters to the rest of the 425 million-strong blue-collar workforce. In recent years, people have been moving in droves into the gig economy, working as housekeepers, drivers, delivery workers and social media influencers.

Already, some of these sectors are getting crowded. In 2024, the number of ride-hailing drivers jumped by 27% to 38 million, prompting some local governments to warn about overcapacity. No surprise, their average monthly pay fell.

Or consider the 18 million social media live streamers, often young people who want glamour in their work. Most of them aren’t getting rich – they are barely getting by. A recent academic survey shows that 93% make less than 3,000 yuan a month, not even half of what an average delivery person earns.

It’s unlikely Beijing will launch the kind of bazooka stimulus witnessed in the aftermath of the global financial crisis (GFC), the last time China’s exports registered double-digit declines. Back then, more than a third of migrant workers, or over 80 million, were employed in manufacturing. The magnitude of job losses was much larger.

Barring mass street protests, the government’s attitude towards blue-collar labourers has been that since many have few skills, they can be flexible. Manufacturing jobs gone? No problem, they can go into the services sector, or back home to the farm. During the GFC, at least 20 million laid-off migrant workers returned to rural areas. This attitude is unlikely to change just because of Trump.

In fact, this trade war only exacerbates a separation of the elite from the grassroots. For the skilled and well-to-do, US tariffs barely touch their lives, and they are thinking of new money-making opportunities now that Trump is tearing up the existing world order (Gold, anyone?). But millions of others are only getting more anxious. – Bloomberg Opinion/TNS

by Shuli Ren, a Bloomberg Opinion columnist covering Asian markets.

Related posts"

US economy in Q1 shrinks amid new tariff policies; US reportedly actively engaging with China through multiple channels

Friday, April 26, 2024

Overcapacity’ an excuse to target ‘Made-in-China’

 

The overarching US strategy of exaggerating the issue of China’s overcapacity … is aimed at checking China’s industrial development by resorting to a beggar-thy-neighbour policy. — China Daily

RECENTLY, some US and EU officials have said China’s overcapacity distorts global pricing and production patterns. Concur-rently, the Joe Biden administration is considering imposing high tariffs on Chinese steel and aluminum, potentially opening a new front in the ongoing trade conflicts in order to contain Beijing’s “Made in China” drive.

Overcapacity is an economic term that signifies a situation in which there is too much production capacity relative to current demand levels, and hence it should not be overly “pan-securitised”.

Capacity utilisation rates are crucial indicators of whether capacity is adequately leveraged, with a very high rate generally indicating a shortage and a low rate suggesting excess capacity or an irrational capacity structure.

According to the latest data from Trading Economics, the United States has a capacity utilisation rate of 78.3% while China’s stands at 75.9%.

Developed countries including the United States and European nations consider any rate between 79% and 83% an indicator of supply and demand. China’s rate is not significantly lower than the healthy range.

Moreover, China has eliminated outdated steel production capacity to a large extent, having reduced about 300 million tonnes of steel and one billion tonnes of coal capacities, including entirely eliminating 140 million tonnes of substandard steel capacity, over the past decade.

Western pressure on China’s industries and trade has intensified in recent years, with many Western countries restricting the export of semiconductors to China and curbing the import of Chinese-made new energy vehicles, while taking “reshoring” or “near-shoring” measures, further exacerbating global overcapacity and straining the global economic governance system.

This is not the first time the West is using “overcapacity” as a pretext to suppress China’s manufacturing sector. In 2012, the European Commission initiated an anti-dumping investigation into Chinese photovoltaic products, initially planning to impose a 47.6% tariff on them. But in July 2013, China and the European Union “amicably” settled the photovoltaic trade dispute.

Unlike previous occasions, however, this round of scrutiny by the West is focused on China’s advanced manufacturing, particularly in clean energy sectors such as electric vehicles (EVs), photovoltaic panels and lithium batteries – areas in which there is intense Sino-US competition and China enjoys competitive advantages.

In recent years, spurred by the “New Washington Consensus”, the Joe Biden administration has increasingly used administrative and other non-market forces to ensure it has the upper hand in its competition with China in strategic future industries.

Government intervention

Also, the United States has been strengthening the industrial policy through government intervention, which, in essence, is strategic protectionism.

As many as 49 industries including automobile, aerospace, defence, electrical equipment, information and communications technology, and renewable energy in the United States get huge government subsidies.

Also, while strengthening itself, the United States has also increased efforts to weaken others. In recent years, under the guise of combating climate change and promoting low-carbon development, the United States has enacted the Inflation Reduction Act, which imposes discriminatory subsidy policies on products from World Trade Organisation (WTO) member states, specifically EVs from China.

These measures distort fair competition and will disrupt the global supply chains, as well as violate WTO rules of national treatment and most-favoured-nation status.

With the US presidential election still seven months away, the “overcapacity” issue is likely to be exploited by US politicians on the campaign trail, and the United States could intensify its rhetoric on China’s overcapacity, possibly imposing tariffs on Chinese exports including EVs, power batteries and photovoltaic panels.

It could also ramp up anti-subsidy and anti-dumping investigations, and impose green or labour standards barriers to limit Chinese exports. Alternatively, it may continue to forge alliances based on different issues to contain China.

The overarching US strategy of exaggerating the issue of China’s overcapacity is not aimed at striking a balance between global supply and demand; instead, it is aimed at checking China’s industrial development by resorting to a beggar-thy-neighbour policy.

The narrative of overcapacity is crafted by the United States to curb China’s industrial upgrading, safeguard certain Western countries’ vested interests in the global industry and supply chains, promote the reshoring of supply chains to the United States, bolster the US’ manufacturing competitiveness, contain China’s technological progress and prevent it from achieving breakthroughs in advanced manufacturing and strategic industries. — China Daily/ANN

Zhang Monan is deputy director of the Institute of American and European Studies at the China Centre for International Economic Exchanges. The views expressed are the writer’s own.

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Yellen's hope for China to reduce production capacity of EVs and solar panels shows a typical American


China firmly opposes 'overcapacity' hype as speculation is unjustified: Chinese FM


Faced with the common challenge of climate change, promoting energy transition should uphold an open and cooperative attitude, rather than getting bogged down in futile trade disputes and blame games, otherwise it will only hinder the pace of global energy transition.


Sunday, October 20, 2019

US ‘hegemonic tariff’ will not make America great again

Photo: VCG

Sustaining hegemony is selfish in nature, especially when hegemony is in decline. The nature of the US wielding the tariff baton, sanctioning other countries' officials and companies is a "hegemonic tariff."

This can be defined by a series of its behaviors, including cracking down on Chinese tech giant Huawei and lobbying its allies to reject Huawei's 5G technology without solid proof; blacklisting Chinese companies for their alleged connections with so-called human rights issues in China's Xinjiang Uyghur Autonomous Region; declaring trade wars against the world; frequent military interventions in other countries' domestic affairs, claiming human rights are superior to sovereignty, and overthrowing governments of other countries.

Take trade wars. China is not the only target of the US. Washington has not even cut its allies some slack. Since 2018, not only Venezuela, Cuba, Ukraine, Turkey have been hit by US sanctions. Quite a few of traditional US allies, including Canada, Japan and South Korea, have also been sanctioned by the hegemonic power. Washington's goal is simple: To protect its domestic market and expand foreign markets to maximize global trade. This philosophy is also called "America First," and the US believes it is able to seek more interests through hegemonic means.

While the US is busy charging its "hegemonic tariff," it is putting the blame on China. The Atlantic published an article on Saturday entitled "The NBA-China Disaster Is a Stress Test for Capitalism," claiming "Chinese companies, furious over [US] public sympathy for Hong Kong, were swift in their vengeance. They suspended licensing agreements with the NBA." It then concluded that firms with business in China pay "values tariff."

This is deliberately confusing right from wrong. It shows the US does not respect Chinese sovereignty, while even wishing to impose its own values and political views on the Middle Kingdom.

Hegemonic measures are no longer effective. Trade lasts only when based on mutual respect, equality and mutual benefit. When US companies make money from around the world, they can achieve their goals smoothly only by complying with others' laws and respecting their public opinion.

However, Washington is now becoming increasingly narrow-minded and selfish, regarding mutual benefit as US losses. Worse, it is asking the world to compensate for its losses, urging others to make contributions to "America First" through political, financial and military means.

The Atlantic article noted "the partnership between the NBA and China, which is worth billions of dollars over the next decade, is now in jeopardy." This is exactly the consequence of the US obsessing over hegemony as well as the US obsessing with its so-called moral high ground.

China will not pay a penny for the US "hegemonic tariff," and will take countermeasures to take back what the US has seized from it. The chances of the US profiting from its hegemony are dwindling.

The key to making America great again is to boost the country's competitiveness and innovation, rather than slapping "hegemonic tariffs."

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Monday, July 15, 2019

Trump is the biggest threat

Not much help: Despite his use of tariffs to help skew the playing field in favour of US firms, the very industries Trump has tried to help have become the weakest links in the otherwise solid economy.

WASHINGTON: At rallies and whistle-stop campaign tours, President Donald Trump proclaims a renaissance in US factories rebuilding the nation with “American steel”, “American heart” and “American hands”.

But in reality, despite his relentless use of punitive tariffs to help skew the playing field in favour of US companies, the very industries he has tried to help have become the weakest links in the otherwise solid economy.

With just over a year to go before he faces re-election, Trump takes credit for the most vigorous economy in the industrialised world, with the expansion entering its 11th year and historically low unemployment.

But while services and office jobs dominate the US economy, Trump continues to promote the factory and mining jobs that were the lifeblood of the economy in the last century.

“American steel mills are roaring back to life,” he declared last month in Florida – the same day US Steel announced it would idle plants in Michigan and Indiana until “market conditions improve”.

And to West Virginians he said, “The coal industry is back.”

But in fact each of the sectors Trump has championed – coal mining, steel, aluminium and auto manufacturing – have been buffeted by a combination of market forces and changing technologies – factors beyond his control – or damaged by the very things he did to protect them, economists and analysts say.

Last month, a national survey of manufacturing activity hit its lowest level in nearly three years – narrowly avoiding slipping into contraction – while regional surveys have also seen record declines.

In March, the number of workers in US manufacturing shrank for the first time in nearly two years and it is now growing more slowly than the rest of the American workforce.

Trump has imposed tariffs on hundreds of billions in imports, renegotiated trade agreements and dangled the threat of worse over China and Europe and Mexico – all while publicly browbeating companies that close US factories or move production offshore.

But weak foreign demand, a strong US dollar and a decades-long evolution away from domestic manufacturing have progressively shrunk America’s industrial sector, said Gregory Daco, chief US economist at Oxford Economics.

Trump’s world trade war has not helped either.

“The policies that have been implemented in terms of protectionism have hurt the very sectors they were meant to protect. There’s no escaping that,” Daco said. - AFP/The Star

Read more


China can effectively sanction US companies who sell weapons to Taiwan: experts

The US is deploying a double standard by calling China's proposed sanctions on US companies for arms sales to Taiwan a "foolish action," Chinese mainland analysts said on Sunday, pointing out that the sanctions could not only cut base material supply to these companies including rare earths but also block their non-military products from entering Chinese markets.

The Point: Chinese economic data reveals the winner of trade war

https://youtu.be/iqExpwZh3TE


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Uncertainty over the future of US-China economic relations has derailed the once high-flying global equity market, which rose almost 15 per .

Thursday, June 20, 2019

China takes moral high ground in face of US power play



The Sino-US trade dispute is not only a game between representatives of the two countries at the negotiating table, but also a contest between the two sides in the field of international public opinion. In this dispute, which may evolve into a protracted confrontation, China has no choice but to take international justice and law as the criterion. While striving to safeguard its own core interests, China is also committed to international morality.

Over the past year and more, the tactics used by China and the US in the trade war have drawn a sharp contrast, highlighting the new trend of the strategic game between emerging powers and already existing powers in the new era.

China is actively opening to the outside world to reduce trade restrictions, while the US frequently imposes tariffs on other countries. China never threatens other countries, but seeks common interests through negotiations. The US frequently resorts to a maximum pressure approach. China respects the international system and acts in accordance with the principles of justice. The US does not obey rules, and uses what is appropriate and discards what is not. China respects each other's concerns about economic interests, while the US only considers its own interests. China has resolutely defended and safeguarded the basic principles of the WTO and put forward a reform plan. The US threatened to withdraw from the WTO to act according to its will. 

Welcome to America Illustration: Liu Rui/GT
Uncle Sam, which prides itself on international justice, has arrogantly put "America First" above international justice and law. Closing the door for selfish gain, Washington is slipping from the moral high ground. China adheres to principles, is calm and rational, pursues fairness and justice, opens the door to common prosperity and cooperation, and presents itself as a responsible major country. 

Theodore Roosevelt once said, "If we are to be a really great people, we must strive in good faith to play a great part in the world." The use of unilateralism to force opponents to surrender has caused the biggest blow to the international free trade system since the end of the Cold War.

At this time, it has become the common responsibility of the international community to work together to consolidate and improve the existing international economic and trade system so that it is fairer and more reasonable and not hijacked by the US.

It appears that the US is decoupling with China, in fact, the US is decoupling with the world. As the largest developing country and the world's No. 2 economy, China has the responsibility and wisdom to play a bigger role in promoting globalization.

The conflict between China and the US tests the level of political governance, the potential of economic development, the unity of the people and the global influence of the two sides. The future depends more on who can be a positive force for world peace and development.

China's economic and trade links with the rest of the world have never been so extensive and deep as they are today. The further development of globalization and the progress of the world political and economic governance system need China's contribution.

China is an emerging power. The rise of any big country in history will not be smooth. A great power that can truly stand firm on the world stage may start out lonely, but in the end, it becomes more and more cohesive. The trade war has put China through the test that a rising power must endure. It has strengthened our confidence to firmly occupy the international moral high ground.

China's past success lies in its ability to accurately grasp the convergence between China's "potential" and the world's "potential." China's sustainable development in the future depends on how we take advantage of the trend of world development to develop ourselves, and use our own reform and opening-up to promote world development.

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Wednesday, June 5, 2019

US global naked economic terrorism

https://youtu.be/VaREP75PlSA

https://youtu.be/YWdNP2u7voo

Global financial markets are facing a stark wake-up call that they need to unite to stand against acts of what can only be described as economic terrorism by a country which unilaterally imposes its will on others and pursues its own goals at the cost of the interests of others.

More than a year after US President Donald Trump fired the first tariff salvo at China, he is extending the battlefield around the world. On Friday, his administration announced that it will end special trade treatment for India, removing a status that exempts billions of dollars of the South Asian country's products from US tariffs. Trump is seriously mulling slapping tariffs on Mexican imports as he believes the country has taken advantage of the US for decades.

Even close allies cannot trust they will be exempt from Trump's tariff addiction. It was reported that the administration considered imposing tariffs on imports from Australia, but eventually decided against the move amid opposition from his aides, "at least temporarily."

Obviously, Trump, a businessman-turned president, is aiming his trigger finger regardless of the targets, be they US competitors or allies. Trump grumbles about his country subsidizing the world and weakening US industry and pledges to make America great again. But he doesn't realize that a great superpower is supposed to provide public goods rather than resorting to coercion for selfish gains. His tactics are nothing short of economic terrorism.

The International Air Transport Association has estimated that the US-China trade war and high fuel prices will wipe $7.5 billion off expected airline profits in 2019. This is just the figure from the airline industry, which is enough to show the disastrous impact the US-initiated economic terrorism has on the globe. Trump may disrupt the global supply chain with the US' economic clout, but how can a disrupted global supply chain serve the US' strategic objectives of being a great country?

What is worse, before the US becomes great again as the president wishes, he is actually employing the strategy of blocking other countries to take the lead, as we see in his actions in quashing Huawei's 5G advancement.

Later this month, leaders from the world's top economies will meet at the G20 summit in Osaka, Japan to discuss key economic issues that plague the world. The conventional views of globalization and its benefits are still shared by most countries, and many countries and regions are continuing to open their economies. They should unite to face the chaos created by the Trump administration and find a way forward, so the process of globalization will not be held hostage by the US' economic terrorism. - By Zhang Yi


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China says US trade provocations are 'naked economic terrorism


Provoking trade rows is 'naked economic terrorism', says China ...

China aligns with world order by improving it

As a civilization that is thousands of years old, China has always been integrating into the current international system and taking responsibility to defend the international order after the world wars and the international rule of law coming into force. At the same time, China is dedicated to promoting democratization and legalization of international relations.

 



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A screen shot of Liu Xin of China Global Television Network appearing on Trish Regan's show on Fox Business Network on Thursday Beij.



https://youtu.be/DjMI0mLUuYI https://youtu.be/uEAc3PYe1W0 https://youtu.be/UABkYYyPMzc https://youtu.be/NrfoG840wVk China ..