Everything You Need to Know About China's Economy on Friday (July 4)
Your Daily & Trustworthy Updates on the Chinese Economy
Subscribe for free |View in your browser |Tweet@TIANDongdong
HOWDY! This is Tian in Beijing, welcoming you to your Friday edition of Everything You Need to Know About China’s Economy.
DRIVING THE DAY, U.S. LIFTS A SERIES OF ECONOMIC AND TRADE RESTRICTIONS ON CHINA.
China's Ministry of Commerce said Friday that dialogue and cooperation are the right path forward, in response to the U.S. lifting.
A spokesperson for the ministry made the remarks in response to a media query about recent reports that certain Chinese companies have received notices from the U.S. Department of Commerce regarding the resumption of exports to China of products such as electronic design automation software, ethane, and aircraft engines.
The spokesperson confirmed that following the recent China-U.S. economic and trade talks in London, both sides had finalized implementation details to carry out the important consensus reached by the two heads of state during their phone talks on June 5, and to consolidate the outcomes of the economic and trade talks in Geneva.
As part of this process, China is reviewing applications for export licenses for eligible controlled items in accordance with laws and regulations, while the United States has taken corresponding steps to remove certain restrictive measures and has informed the Chinese side, the spokesperson said.
Describing the framework reached during the economic and trade talks in London as "hard-won," the spokesperson stressed that dialogue and cooperation are the right path forward, while threats and coercion "lead nowhere."
ALSO ON FRIDAY, CHINA ISSUES FINAL RULING OF ANTI-DUMPING PROBE INTO EU BRANDY IMPORTS
China's Ministry of Commerce on Friday announced the final ruling of its anti-dumping investigation into brandy imports from the European Union (EU), saying that it will impose anti-dumping measures on these imports for a period of five years, effective Saturday.
The investigation found that brandy imported from the EU involves dumping, posing an actual threat of damage to the domestic brandy industry, according to the ministry. There is a causal relationship between the dumping and the threat of damage, the ministry said.
According to the ministry, the final ruling determined dumping margins ranging from 27.7 percent to 34.9 percent.
The decision followed an extended investigation that began in January 2024. A preliminary assessment was issued in August 2024, and temporary anti-dumping measures were imposed in October of the same year.
The anti-dumping investigation examined EU-produced brandy in containers holding less than 200 liters imported to China from Oct. 1, 2022, to Sept. 30, 2023, the ministry said.
The ministry added it has accepted price undertakings submitted by relevant EU industry associations and enterprises, and will not impose anti-dumping duties on imports that comply with the terms of the undertakings.
Following the announcement of the final ruling, a spokesperson for the ministry said the decision to accept price undertakings demonstrates China's sincerity in resolving trade disputes through dialogue and consultation.
The spokesperson said that China hopes the EU will work with China in the same direction, strengthen dialogue and communication, and work with China to address economic and trade differences to create favorable conditions for the consolidation and expansion of China-EU economic and trade cooperation.
MEANWHILE, CHINA REASSURES EUROPE ON RARE EARTH SUPPLY AMID EXPORT CONTROLS.
Rare earth exports have never been and should not become an issue between China and Europe, Chinese Foreign Minister Wang Yi said on Thursday during a joint press conference with German Foreign Minister Johann Wadephul in Berlin.
Responding to a question about European companies' concerns over China's rare earth export controls, Wang emphasized that it is a sovereign right and international responsibility for any country to impose necessary regulations on dual-use items -- goods that can serve both civilian and military purposes.
China's policy is consistent with international practices, and contributes to safeguarding global peace and stability, Wang said.
He highlighted that as long as export control regulations are followed and the proper procedures are completed, the normal demands of European enterprises will be met.
Wang noted that Chinese authorities have also established a "fast track" mechanism to facilitate exports to European companies.
IN TODAY'S FINANCIAL MARKET，
Chinese stocks closed mixed on Friday, with the benchmark Shanghai Composite Index up 0.32 percent to 3,472.32 points.
The Shenzhen Component Index closed 0.25 percent lower at 10,508.76 points.
The combined turnover of these two indices stood at 1.43 trillion yuan (about 199.9 billion U.S. dollars), up from 1.31 trillion yuan on the previous trading day.
Shares in the gaming, banking and power sectors led the gains, while those related to solid-state battery, beauty care and non-ferrous metals suffered the most.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.36 percent to close at 2,156.23 points
Hong Kong's Hang Seng Index closes 0.64 pct lower
Hong Kong stock market ended lower on Friday with the benchmark Hang Seng Index down 0.64 percent to close at 23,916.06 points.
The Hang Seng China Enterprises Index fell 0.45 percent to end at 8,609.27 points, and the Hang Seng Tech Index slid 0.33 percent to end at 5,216.26 points.
Chinese yuan weakens to 7.1535 against USD Friday
The central parity rate of the Chinese currency renminbi, or the yuan, weakened 12 pips to 7.1535 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
China's benchmark interbank gold prices higher Friday
According to the China Foreign Exchange Trade System, the benchmark price for gold that is 99.95 percent pure or above stood at 776.70 yuan per gram, 5.37 yuan higher than the previous trading day.
The price for gold that is 99.99 percent pure or above was up 5.44 yuan from the previous trading day to 776.14 yuan.
AT THE END OF TODAY'S SHARING, LET'S TAKE A LOOK AT YOUR DAILY FUTURES:
Iron ore futures closed higher on Friday in daytime trading at the Dalian Commodity Exchange (DCE).
The most active iron ore contract for September 2025 delivery gained 4.5 yuan (about 63 U.S. cents) to close at 732.5 yuan per tonne.
On Friday, the total trading volume of 12 listed iron ore futures contracts on the exchange was 513,626 lots, with a turnover of about 37.59 billion yuan.
Cotton futures closed lower Friday in daytime trading on the Zhengzhou Commodity Exchange (ZCE).
The most active cotton contract for September 2025 delivery lost 10 yuan (about 1.4 U.S. dollars) to close at 13,780 yuan per tonne.
On Friday, the total trading volume for six listed cotton futures contracts on the ZCE was 170,707 lots with a turnover of 11.76 billion yuan.
No.1 soybean futures closed lower on Friday in daytime trading at the Dalian Commodity Exchange.
The most active No.1 soybean contract for September 2025 delivery dipped 37 yuan (about 5.17 U.S. dollars) to close at 4,111 yuan per tonne.
On Friday, the total trading volume of six listed No.1 soybean futures contracts on the exchange was 160,607 lots, with a turnover of about 6.62 billion yuan.
Sugar futures closed higher Friday in daytime trading on the Zhengzhou Commodity Exchange.
The most active sugar contract for September 2025 delivery gained 6 yuan (about 83.9 U.S. cents) to close at 5,769 yuan per tonne.
On Friday, the total trading volume for six listed sugar futures contracts on the ZCE was 263,289 lots with a turnover of 15.15 billion yuan.
About the Newsletter:
Ran by TIAN Dongdong, this newsletter features daily and trustworthy content on China's economy. Having worked in Brussels, London, Cairo, and Tripoli for Chinese media as correspondent for several years, TIAN is now based in Beijing.