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China September bank loans rise less than expected as weak credit demand persists

by Priya Shah – Business Editor October 16, 2025

written by Priya Shah – Business Editor

China‘s Bank Loan ‌Growth Slows in September, Signaling Persistent⁤ Weak Demand

BEIJING, Oct. 13 – New bank loans in⁢ China rose at a slower-than-expected pace in September, indicating continued‍ weakness in credit demand despite government⁢ efforts to stimulate the⁢ economy. The increase ‍underscores ongoing⁣ challenges in bolstering growth as‌ concerns ‍mount over the property sector adn broader economic ‍outlook.

Chinese banks extended 1.39⁤ trillion‌ yuan ⁢($190.73 billion) ⁤in new yuan loans in September, according to data‌ released by the People’s Bank of China (PBOC) on Friday.‍ This ⁢figure falls short of the 1.55 trillion yuan forecast‌ by analysts ‌in a Reuters poll and compares to 1.48 ‌trillion yuan issued in August. The slowdown suggests that businesses and consumers remain hesitant ⁤to take ‍on new debt, even as the PBOC ⁢has implemented various easing measures, including cuts to key interest rates and reserve requirement ratios.

The data reveals a broader⁣ trend of cautious lending. aggregate financing to the real economy – a more extensive measure of ‌credit – increased 309.4 billion yuan in September, down from‌ 346.4 billion yuan the previous month. This includes corporate bonds, bank bills, ⁣and othre forms of financing.⁣

Mortgage loans, ⁤a ⁣key indicator of the health of the property market,⁢ continued⁣ to struggle. new home sales have been declining, and developers face mounting debt pressures. The PBOC‌ data showed that 581.6 billion yuan in‌ household ⁤loans were issued in September,of which ⁤498.3 billion yuan were mortgage‍ loans.

Analysts say the weaker-than-expected loan growth highlights the ‌need for more targeted‍ and forceful policy support ⁤to revive credit demand and bolster economic activity. The PBOC‌ is⁢ expected to‍ maintain its accommodative monetary policy stance in‍ the coming⁤ months, but the effectiveness of these measures will depend on restoring confidence among businesses and consumers. The next key data release⁣ will ⁣be‍ October’s figures,which will provide further insight into the⁢ trajectory of china’s credit growth and its ⁢impact on the overall economy.

October 16, 2025 0 comments

Business

IMF Says Trade Resilience Driven by Lack of Retaliation on Trump Tariffs

by Priya Shah – Business Editor October 15, 2025

written by Priya Shah – Business Editor

IMF Chief Credits Absence of Tariff Retaliation for Global Growth

WASHINGTON, April 17 ‍- The global ⁢economy is benefiting from the lack ‌of widespread retaliatory ‍tariffs in response⁤ to former U.S. President Donald Trump‘s trade policies, ⁣International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Wednesday. This⁤ restraint, despite significant trade ⁣distortions caused by the initial tariffs,‍ has helped prevent a⁤ deeper slowdown in global growth, she stated during a press ⁢conference at the IMF and⁢ World bank Spring Meetings.

Georgieva’s⁢ remarks come ⁢as global trade remains under pressure from geopolitical tensions and‌ supply chain disruptions, but notably avoids a full-blown trade war‌ scenario. while Trump-era tariffs on goods from countries like China remain largely in ‍place, the absence of broad-based retaliation from affected nations has been a ⁤crucial factor in‍ sustaining economic activity. The IMF chief emphasized that unwinding these tariffs would provide a further boost to global growth, estimating a potential increase⁣ of 0.5% to global GDP.

The IMF’s ‌latest⁤ World economic Outlook, released earlier this week, projects ⁣global growth at 3.2% for 2024 and 3.1% ⁣for‍ 2025 – a ⁤modest but continued expansion. Georgieva acknowledged⁢ that the global economic⁤ outlook is fragile,⁢ citing risks including persistent inflation, geopolitical fragmentation, and rising debt levels. However, she⁣ highlighted that the ⁤avoidance⁢ of escalating trade conflicts⁣ has been a positive⁢ force.

“The ‌fact that there was not a ⁣full-blown retaliation‌ to the‌ tariffs that⁤ were imposed is something that, in retrospect, we can be grateful for,” Georgieva said. “Because had we seen⁤ a full-scale trade war, the ‌impact on global growth would ⁣have been significantly more severe.”

The original tariffs, implemented beginning in 2018, targeted a wide range of goods, including steel, aluminum,⁤ and ⁤consumer products. While intended⁢ to⁤ protect domestic industries and reduce trade deficits, they⁣ led to increased costs for businesses and consumers ⁣and disrupted⁢ global supply chains. The Biden administration has‍ maintained many of ⁣these tariffs,⁤ while also pursuing new trade initiatives focused on⁢ strengthening relationships‌ with allies⁣ and addressing unfair trade practices.

The IMF continues to advocate for a ⁤rules-based multilateral⁣ trading system ⁢and encourages⁢ countries to resolve trade disputes through the World Trade Institution (WTO). ‌Georgieva’s comments underscore⁤ the importance of international cooperation in ‍navigating the complex challenges facing the global economy⁣ and avoiding protectionist measures that could further undermine growth.

October 15, 2025 0 comments

World

Trump’s trade war with China in 2025

by Lucas Fernandez – World Editor October 14, 2025

written by Lucas Fernandez – World Editor

WASHINGTON, Oct 26 – Escalating tensions over trade imbalances and technological ⁢competition, former President Donald Trump has announced the⁢ reimposition of significant tariffs on Chinese goods, triggering a renewed trade war between the world’s two largest economies. ‍The move, effective November 1st, will see ⁣tariffs ‍increased to ⁣60% on over $300 billion worth of Chinese imports, mirroring and exceeding the ⁤levels seen during Trump’s initial trade conflict beginning ‍in 2018.

The resurgence of trade⁢ hostilities arrives as both nations grapple with‍ slowing economic growth and ⁢domestic political pressures. The tariffs⁢ are expected⁣ to impact a wide range ⁢of consumer goods, from electronics and apparel to industrial machinery, perhaps fueling inflation in the United States and disrupting global supply chains. Beijing has already signaled its intent to retaliate with reciprocal tariffs on U.S. exports, raising the specter of a prolonged⁤ and‌ damaging trade standoff. This escalation marks a significant⁢ shift from the Biden governance’s ⁢earlier attempts ⁢to ‍engage in dialog with⁤ China and address trade concerns through negotiation.

The ⁣renewed trade war stems⁣ from Trump’s ⁢repeated‌ claims‍ that China engages in unfair trade practices, including currency manipulation,‍ intellectual property theft, and state subsidies for its‍ industries. During a ‌rally ‌in Iowa on⁣ Friday, ‍Trump stated, “china has been ripping us off for years, and it’s time to put America first again. ⁣we’re ⁤going to bring jobs back home and make America wealthy.” He specifically‍ cited a $323.3 billion trade deficit with china in 2023 as evidence of the imbalance.

Economists are divided on the ⁤potential consequences. ⁣ A recent analysis by ‍the Peterson Institute for ⁤International Economics⁣ estimates the tariffs could reduce U.S. GDP by 1% and lead to the loss ⁣of 700,000 American jobs. Conversely, some Trump supporters argue the tariffs will incentivize domestic manufacturing and reduce reliance on Chinese supply chains. ⁢

The initial trade war under Trump, which began in 2018, ⁢saw tariffs imposed on hundreds of billions of dollars worth of goods from⁣ both ‌countries. While ⁣a “Phase One” trade deal was⁣ signed in January 2020, it did little to‍ resolve the underlying ‌issues, and‍ many tariffs remained in place. The current escalation builds on that unresolved ‍friction.

China’s Ministry of Commerce issued a statement condemning the tariffs as “unilateral and protectionist” ⁤and vowed to “firmly defend its legitimate ‍rights and interests.” The statement further warned that China is prepared to take “necessary measures” to ‌counter the⁣ U.S. actions.‌ Analysts ‍predict these measures will likely⁤ include⁤ tariffs on U.S. agricultural products, ⁣energy resources,⁢ and aircraft.

The impact will⁣ be felt globally.⁣ European and Asian markets reacted negatively to the news,with⁢ stock indices falling sharply. The International monetary fund has warned that a full-blown trade war could derail the global economic recovery. ‌The‌ situation remains fluid, with both sides signaling a willingness to escalate further if their demands are not met.

October 14, 2025 0 comments

Business

Revived US trade war knocks China’s stocks from lofty peaks

by Priya Shah – Business Editor October 13, 2025

written by Priya Shah – Business Editor

U.S.Trade War⁣ Flare-Up Sends ‌China Stocks Tumbling

SHANGHAI, May 17 – Chinese stocks experienced a sharp sell-off Friday, erasing earlier gains for the year, as the biden management announced meaningful ‌increases to tariffs on Chinese goods, reviving fears of ‍a full-blown trade war. The CSI 300 Index closed down 3.66%,⁤ marking its largest single-day drop⁢ in over a year, while the Shanghai Composite Index ‍fell 2.6%.

The escalation, targeting strategic⁤ sectors like electric vehicles, solar products, and semiconductors, represents a considerable⁣ shift in U.S. ‍trade policy towards China. The move impacts billions of dollars in trade ‍and threatens to further strain the world’s two largest economies, possibly disrupting global supply⁤ chains and raising costs for consumers. This renewed trade tension arrives at a sensitive time for China, which has been attempting to bolster its economic recovery following the lifting of COVID-19 restrictions, and for the U.S.,as it heads ‌into a presidential election year.

The U.S. Trade Representative announced tariffs will rise to 100% on electric vehicles, 50% on solar cells, and 25% on semiconductors, citing concerns over china’s industrial policies and alleged unfair trade practices. ‍ “For years,China has pursued an economic strategy built on unfair practices – ‍including dumping,subsidies,and theft ⁢of intellectual property – that harms American⁣ workers and businesses,” U.S. Trade Representative Katherine Tai stated⁢ in a press briefing. “This action will prevent China from overwhelming the U.S. market with artificially cheap products.”

China’s Ministry ⁣of Commerce swiftly condemned the tariffs, calling them a “violation of international economic and trade rules” and vowing to take “strong measures to defend⁣ its rights.” ⁤A ministry spokesperson stated that the U.S. actions “disrupt global industrial and supply chains” and⁤ “are not conducive to the economic recovery of ⁣the world.”

The impact⁤ was promptly ⁤felt⁣ across Chinese markets. Shares of EV manufacturers like BYD and Nio plummeted, while solar panel producers also‍ saw significant declines.analysts predict further volatility in the coming‍ days as investors assess the long-term implications of⁤ the tariff hikes.

“This is‌ a⁤ significant escalation that throws a wrench ⁤into the narrative of a stabilizing China-U.S. relationship,” saeid Alicia garcia Herrero, Chief Economist for Asia⁣ Pacific at Natixis. “The tariffs will undoubtedly hurt Chinese exports, but the bigger risk is ⁣the potential ‍for further retaliation and a broader decoupling of the two economies.”

The U.S. has framed ‍the tariffs as a response to China’s overcapacity in key sectors, arguing that state subsidies are enabling⁢ Chinese companies to flood the global market with artificially low-priced goods.⁢ The Biden administration also cited national security‍ concerns ‌related to the semiconductor industry. ‌The tariffs are set to be phased in over the next several years, giving companies time to adjust, but the long-term outlook remains uncertain.

October 13, 2025 0 comments

World

Kremlin warns the West over ‘dramatic’ escalation moment in Ukraine war

by Lucas Fernandez – World Editor October 12, 2025

written by Lucas Fernandez – World Editor

Kremlin spokesperson Dmitry ‍Peskov issued a stark warning‌ to Western ⁣nations on⁣ Tuesday, stating ⁤that‌ continued arms deliveries to Ukraine‍ risk a notable escalation ⁢of the⁣ conflict, potentially‍ triggering a “dramatic” turn in events. The warning comes as the United States and ‍its allies debate sending more advanced weaponry, including F-16 fighter jets, to Kyiv.

The⁢ escalating ‌rhetoric underscores the‍ Kremlin’s growing frustration with the ⁤sustained military aid flowing to Ukraine, which Moscow views as‌ direct involvement⁤ by NATO in ‍the conflict. This latest‌ statement ‌raises concerns⁤ about a potential broadening of the war and signals a heightened level of risk as Ukraine prepares for a widely anticipated ‍counteroffensive. The stakes are⁣ high, with the potential for ‌miscalculation⁢ and further destabilization of the region.

Peskov told reporters that ‌such deliveries “will⁣ bring‍ more problems,” and⁢ asserted‍ that Western involvement‌ is actively prolonging ⁤the fighting.‌ He specifically referenced recent statements from British officials regarding potential strikes ‍within Russian territory using British-supplied weapons, characterizing them as a dangerous escalation.

“This is⁤ a very dangerous path,which could lead to ‍a⁤ dramatic escalation ⁢of the situation,”⁤ Peskov stated,according ⁣to Reuters. He added that Russia views any attacks on its ⁣territory as a provocation and reserves the ⁤right to ‌respond.

The Kremlin’s warning ⁢follows a recent pledge by the ⁣United States ⁤to provide Ukraine with an additional $375 million in⁢ military aid, including ammunition, armored ⁢vehicles, and ⁤spare parts. Discussions are ‌also underway regarding ⁤the potential transfer of F-16 fighter jets, a move⁢ that would considerably bolster Ukraine’s air capabilities.

Western officials maintain⁣ that the aid is intended to help Ukraine defend itself ⁢against Russian aggression and restore its territorial‍ integrity. However, Moscow views these actions as a deliberate attempt to undermine Russia’s security interests and prolong the ⁢conflict. the situation remains ⁢volatile, with the potential for further‌ escalation looming large.

October 12, 2025 0 comments

World

Yen Set for Steep Drop: Intervention Possible if it Reaches 160

by Lucas Fernandez – World Editor October 10, 2025

written by Lucas Fernandez – World Editor

Tokyo – Japan could intervene in foreign ⁢exchange markets if the yen approaches 160 against the U.S. dollar, a former Bank of Japan (BOJ) official warned, signaling growing concern over the currency‘s recent sharp decline. The yen⁤ has weakened⁣ significantly this year, hitting a 34-year ⁣low, fueled by the widening interest rate differential between Japan and the united States.

The potential for ‌intervention ⁣comes as a weaker yen increases import ⁤costs for Japanese businesses and consumers, impacting the world’s third-largest economy. While the BOJ has maintained its ultra-loose monetary policy, the Federal Reserve is ⁤expected to delay interest rate cuts, ‌further exacerbating the yen’s depreciation. Any⁣ intervention would likely aim to stabilize ⁣the currency and prevent further economic strain,though the effectiveness of such measures remains a subject of debate among economists.

Naoki‌ shirakawa, who served as BOJ governor from 2011 to 2013, stated in a speech on Thursday that intervention would be considered if the yen were to fall to around 160 per dollar. Shirakawa emphasized that intervention should be a temporary measure and coordinated with other countries to ‌maximize its impact.

The yen was trading at 155.73 per dollar as of 10:18 a.m.in Tokyo. Japanese authorities have previously intervened in the currency market, ‍most recently in 2022 to counter a sharp yen decline.Finance Minister Shunichi Suzuki has⁢ repeatedly stated that Japan will take “appropriate measures” against excessive currency volatility, without explicitly mentioning intervention.

October 10, 2025 0 comments

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