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Stock markets mostly gained and the dollar eased Tuesday ahead of key US inflation data, and after Chinese economic growth data met expectations.London’s benchmark FTSE 100 index briefly traded above 9,000 points for the first time. Indices generally were benefiting from optimism that governments will hammer out deals to avoid the worst of US President Donald Trump’s tariff threats.Oil prices dropped despite Trump telling major crude producer Russia to end its war in Ukraine within 50 days or face massive new economic sanctions.”Markets are particularly attuned to the evolving landscape of trade negotiations,” noted Samer Hasn, senior analyst at traders XS.com.”Moreover, the market is awaiting key releases today, including the (US) Consumer Price Index.”Traders are also keeping a watch over the start of the earnings season.US investment banking giant JPMorgan Chase on Tuesday reported second-quarter profits that topped analyst estimates.Chief executive Jamie Dimon described the US economy as “resilient” while facing “signifiant risks”, including over tariffs uncertainty.Ahead of Wall Street reopening, US futures rallied following news that tech titan Nvidia will resume sales of its H20 artificial intelligence chips to China, after Washington pledged to remove licensing curbs that halted exports.The Nasdaq hit another record high on Monday.Trump meanwhile said he would impose antidumping duties on most imports of fresh tomatoes from Mexico, with the US Commerce Department accusing its neighbour of engaging in unfair trade.That came after the president said he would hit Mexico and European Union with 30 percent levies, following a slew of announced measures against key partners last week if deals are not struck by August 1.Analysts said investors viewed the warnings as negotiating ploys rather than a genuine move, citing previous threats that were later rowed back.Bitcoin retreated, having hit a record high above $123,200 Monday thanks to optimism over possible regulatory changes for crypto assets in the United States.- Key figures at around 1100 GMT -London – FTSE 100: FLAT at 8,995.58 pointsParis – CAC 40: UP 0.1 percent at 7,815.63 Frankfurt – DAX: UP 0.2 percent at 24,192.33Tokyo – Nikkei 225: UP 0.6 percent at 39,678.02 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 24,590.12 (close)Shanghai – Composite: DOWN 0.4 percent at 3,505.00 (close)New York – Dow: UP 0.2 percent at 44,459.65 (close)Euro/dollar: UP at $1.1682 from $1.1670Pound/dollar: UP at $1.3454 from $1.3428Dollar/yen: DOWN at 147.76 yen from 147.77 yenEuro/pound: DOWN at 86.83 pence from 86.88 penceWest Texas Intermediate: DOWN 0.7 percent at $66.51 per barrelBrent North Sea Crude: DOWN 0.5 percent at $68.88 per barrelburs-bcp/rmb

Tesla unveiled its first showroom in India on Tuesday, marking its entry into the world’s most populous country, as Elon Musk’s electric vehicle company seeks new customers amid sagging sales in the United States and Europe.The store opened its doors in India’s financial capital Mumbai to select visitors after its inauguration by Maharashtra state’s chief minister Devendra Fadnavis.The company — which is targeting a niche but quickly growing electric vehicle market in India — said that it was currently offering its Model Y car in India and would look to start rolling out deliveries of a cheaper variant later this quarter. “This is the first launch of Tesla in India. It marks a huge milestone for Tesla globally,” said Isabel Fan, the company’s senior regional director, adding that charging stations would be set up in Mumbai and the capital New Delhi shortly.While the showroom will open to the general public on Wednesday, curious onlookers and Tesla admirers braved Mumbai’s heavy rains to catch a glimpse of the cars on display.Tesla has for years signalled its interest in India but held back due to the country’s steep tariffs on electric vehicles.Musk, who once described India as having “more promise than any large country”, has also criticised its import duties, calling them among the “highest in the world”.New Delhi has offered to cut import taxes on electric vehicles for global automakers only if they commit to investing hundreds of millions of dollars and make cars locally.Tesla has yet to announce plans to set up a plant in India.- India’s nascent EV industry – For now, local media reports say, the company will likely sell cars imported from China.As a result, its Model Y variants start from an on-road price of around $70,000 in India, according to its website, far higher than a US price of $37,490 after a $7,500 federal tax credit. Tesla’s India debut comes at a critical time for the company, which is seeing demand wane for its cars in countries around the world.The recent slump in Tesla’s sales partly reflects the highly competitive nature of the EV market, which the company once dominated but now also features BYD and other low-cost Chinese players. While Tesla is looking to tap the world’s third-biggest car market, experts say it is unlikely to see huge volumes in the short-term due to the nascent nature of India’s EV industry and the hefty price tag of its vehicles.India’s EV market is fast-growing but remains small, with automakers reporting sales of around 100,000 vehicles in 2024 or less than three percent of total car sales. Soumen Mandal, a senior analyst at Counterpoint, said the high price tag will likely place it out of the price range of most Indian customers and see it compete against offerings from luxury carmakers instead.”We don’t expect Tesla to play the volume game right away given the price tag,” Mandal told AFP.”We project 500-700 units sold in initial months and then that to taper off to 200-300 (per month).”India is currently negotiating a trade deal with the United States, including a potential reduction in tariffs on automobiles.In February, Musk held a one-on-one meeting with Indian Prime Minister Narendra Modi in Washington.

Italian fashion house Loro Piana, owned by French giant LVMH, has been placed under court administration for allegedly facilitating the exploitation of workers by subcontractors.In a statement, the carabinieri police said the company had been deemed “incapable of preventing or curbing labour exploitation within the production cycle by failing to implement adequate measures to verify the actual working conditions or the technical capacities of its contractors”.An investigation found the fashion house entrusted the production of its clothing, including cashmere jackets, to a company without production facilities.That firm outsourced the work to another company, which in turn used workshops in Italy employing Chinese workers to save costs, the statement said.In these workshops, irregular workers were exploited without respecting health and safety rules, particularly regarding wages, working hours, breaks and holidays, investigators found.The judges of the Milan court found that Loro Piana “negligently facilitated” the exploitation, according to the police statement.The court however stressed that the one-year administration was intended as “preventative”, not a punishment, according to the court document seen by AFP.It was aimed at “combating the unlawful contamination of healthy businesses by subjecting them to judicial oversight” where they can be removed from “criminal infiltration”.In a statement, Loro Piana said it had terminated ties with its supplier within 24 hours of discovering the existence of its subcontractors on May 20, and was fully cooperating with authorities.”Loro Piana strongly condemns any illegal practices and reaffirms its ongoing commitment to protecting human rights and complying with all applicable regulations throughout its entire supply chain,” it said.The investigation began in May following a complaint from a Chinese worker who claimed he was beaten by his boss after demanding payment of back wages, police said.The police carried out inspections in factories run by Chinese citizens in the area surrounding Milan, finding violations of workplace rules as well as illegally built dormitories and unsanitary conditions.Proceedings were brought against two Chinese nationals who owned workshops, two Italians for violations of workplace health and safety standards, and seven workers without residence permits. The court also imposed fines totalling over 181,000 euros ($211,000) and administrative penalties of around 60,000 euros.The operations of two Chinese workshops were also suspended “for serious safety violations and the use of undeclared labour”, the police statement said.Loro Piana was acquired by LVMH in 2013, and is currently led by Frederic Arnault, son of LVMH chairman Bernard Arnault.The company did not comment on the proceedings in Milan.The Italian justice system has already carried out similar proceedings against other fashion houses including Armani.In May, the Italian competition authority cleared luxury brand Dior — also owned by LVMH — of violations in working conditions but required it to pay a two-million-euro fine towards “victims of exploitation”.

Markets rose Tuesday as data showed China’s economic growth met expectations, while optimism that governments will hammer out deals to avoid the worst of Donald Trump’s tariff threats provided support.Beijing said gross domestic product expanded 5.2 percent in April-June thanks to a surge in exports as businesses front-loaded shipments ahead of the US president’s stiff levies, and after the superpowers agreed to work on a long-term pact.While the reading was slightly slower than the first quarter, it was in line with forecasts in an AFP survey and comes after figures on Monday showed exports soared more than expected in June, including a strong recovery in goods sent to the United States.Industrial output came in above expectations.However, Tuesday’s reports showed efforts to boost consumer activity continue to fall flat, with retail sales expanding 4.8 percent last month, well below estimates in a Bloomberg study and highlighting the work leaders face in kickstarting the economy.”Recent efforts to boost spending, such as the broadening of the consumer goods trade-in scheme earlier this year, did temporarily lift retail sales,” said Sarah Tan, an economist at Moody’s Analytics.”However, this support proved unsustainable, with funding reportedly drying up in several provinces. The scheme’s limitations highlight the need for policymakers to address the deeper structural challenges behind consumer caution.”China’s recovery has been hamstrung by a bruising trade war with the United States, driven by Trump’s sweeping tariffs, though the two de-escalated their spat with a framework for a deal at talks in London last month.But observers warn of lingering uncertainty.And the US president upped the ante Monday, warning Russia’s trading partners — which include China — that he will impose tariffs reaching 100 percent if Moscow fails to end its war on Ukraine within 50 days.Lynn Song, chief economist for Greater China at ING, said: “China remains on track to hit this year’s growth target, though a slowdown could be on the way.”Still, after a wobble in the morning Hong Kong rose more than one percent while Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington, Mumbai and Jakarta were also in positive territory along with London, Frankfurt and Paris.Shanghai and Manila sank.US futures rallied following news that tech titan Nvidia will resume sales of its H20 artificial intelligence chips to China, after Washington pledged to remove licensing curbs that had put a stop to exports.Trump also said Monday he will impose antidumping duties on most imports of fresh tomatoes from Mexico, with the US Commerce Department accusing its neighbour of engaging in unfair trade.That came after he said he would hit the country and the European Union with 30 percent levies, having announced a slew of measures against key partners last week if deals are not struck by August 1.However, analysts said investors viewed the warnings as negotiating ploys rather than a genuine move, citing previous threats that were later rowed back.The mixed performance in Asian markets followed a healthy day on Wall Street, where the Nasdaq hit another record high.Bitcoin retreated after hitting a record high above $123,200 on Monday thanks to optimism over possible regulatory changes for crypto assets in the United States.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.6 percent at 39,678.02 (close)Hong Kong – Hang Seng Index: UP 1.6 percent at 24,590.12 (close)Shanghai – Composite: DOWN 0.4 percent at 3,505.00 (close)London – FTSE 100: UP 0.1 percent at 9,004.23 Euro/dollar: UP at $1.1690 from $1.1670Pound/dollar: UP at $1.3447 from $1.3428Dollar/yen: DOWN at 147.65 yen from 147.77 yenEuro/pound: UP at 86.94 pence from 86.88 penceWest Texas Intermediate: DOWN 0.9 percent at $66.37 per barrelBrent North Sea Crude: DOWN 0.8 percent at $68.66 per barrelNew York – Dow: UP 0.2 percent at 44,459.65 (close)

“Dialogue” must be at the heart of ties between Canberra and Beijing, Australian Prime Minister Anthony Albanese said on Tuesday as he met President Xi Jinping in the Chinese capital.Albanese is on his second visit to China as prime minister, seeking to bolster recently stabilised trade ties even as geopolitical tensions remain high.Relations between Beijing and Canberra have charted a bumpy course over the past decade, a period marked by repeated disagreements over national security and competing interests across the vast Pacific region.Ties improved in December when China called off a ban on imported Australian rock lobster, removing the final obstacle to ending a damaging trade war waged between the countries from 2017.Albanese met Xi in the Great Hall of the People and said he welcomed “the opportunity to set out Australia’s views and interests”.”Australia values our relationship with China and will continue to approach it in a calm and consistent manner, guided by our national interest,” Albanese, the leader of Australia’s centre-left Labor government, said.”It’s important we have these direct discussions on issues that matter to us and to the stability and prosperity of our region. As you and I have agreed previously, dialogue needs to be at the centre of our relationship,” he said.Xi, in turn, hailed the “benefits” of improved ties between China and Australia, saying the relationship had “risen from the setbacks and turned around”.”No matter how the international landscape may evolve we should uphold this overall direction unswervingly,” he said.Albanese told reporters after meeting Xi that the two countries had “strategic competition” in the region but continued to engage in order to “support peace and security”.- Key trading partner -China is one of Australia’s most important economic partners, accounting for nearly one-third of its total trade.Albanese is accompanied on his visit by a delegation of key business leaders who will attend a roundtable of CEOs in Beijing.His trip will last until Friday and will also take him to the southwestern city of Chengdu.Albanese is also accompanied by a travelling media pack, members of which said they were briefly surrounded by security guards and told to hand footage to police. A small group of reporters were filming outside Beijing’s Bell and Drum Towers when they were stopped by security guards.National broadcaster ABC’s reporter Stephen Dziedzic said he was “quickly surrounded by a number of security guards, who said they were going to call the police and we didn’t have permission to leave”. “We had the necessary permissions, we had the right visas, but nonetheless perhaps that hadn’t been passed all the way down the chain,” he told ABC. Australian broadcaster SBS, which also has a correspondent on the trip, reported that journalists were briefly surrounded and told to hand footage to police. The group was allowed to leave after Australian diplomats intervened, the ABC and SBS reported.Albanese’s trip also comes as China’s sweeping territorial claims ruffle feathers in the region, particularly pertaining to the South China Sea.Another key point of contention is the fate of northern Australia’s Darwin Port, whose Chinese-owned controller could be forced to sell it to a local buyer by Albanese’s government.Albanese said he raised with Xi the case of Australian writer Yang Hengjun, who has been detained in China since 2019 on spying charges and was given a suspended death sentence.He warned against expecting an immediate outcome, telling reporters “that’s not the way these things work” but instead required “patient, calibrated advocacy”.

Struggling auto giant Nissan said Tuesday it will stop production at its plant at Oppama in Japan at the end of its 2027 fiscal year.Nissan posted a net loss of 671 billion yen ($4.5 billion) last year and it has said it will cut 15 percent of its global workforce.”The company will cease vehicle production at the Oppama plant at the end of fiscal year 2027,” Nissan said in a statement.Production of the plant outside of Yokahama will be shifted to another existing factory on the southern Japanese island of Kyushu, it said.One of Nissan’s six domestic plants, Oppama exmployed around 3,900 people as of October 2024 and began operations in 1961, according to the company’s website.It was a “pioneer in the production of advanced vehicles, such as the Nissan LEAF, the world’s first mass-market electric vehicle,” it said.The heavily indebted carmaker, whose mooted merger with Japanese rival Honda collapsed this year, is slashing production as part of its expensive business turnaround plan.Nissan said in May it would “consolidate its vehicle production plants from 17 to 10 by fiscal year 2027”.Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands.The merger with Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary.Nissan has faced numerous speed bumps in recent years — including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box.Ratings agencies have downgraded the firm to junk, with Moody’s citing its “weak profitability” and “ageing model portfolio”.This year Nissan shelved plans, only recently agreed, to build a $1-billion battery plant in southern Japan owing to the tough “business environment”.Of Japan’s major automakers, Nissan is seen as the most exposed to US President Donald Trump’s 25-percent tariff imposed on imported Japanese vehicles earlier this year.This is because its clientele has historically been more price-sensitive than that of its rivals, according to experts.One potential solution for Nissan could be Taiwanese electronics behemoth Hon Hai, better known as Foxconn, which assembles iPhones and is expanding into cars.Foxconn said in February it was open to buying Renault’s stake in Nissan.

Markets were mixed Tuesday as positive Chinese economic data was offset by weak consumer spending, while optimism that governments will hammer out deals to avoid the worst of Donald Trump’s tariff threats provided support.Beijing said gross domestic product expanded 5.2 percent in April-June thanks to a surge in exports as businesses front-loaded shipments ahead of the US president’s stiff levies, and after the superpowers agreed to work on a long-term pact.While the reading was slightly slower than the first quarter, it was in line with forecasts in an AFP survey and comes after figures on Monday showed exports soared more than expected in June, including a strong recovery in goods sent to the United States.Meanwhile, industrial output came in above expectations.However, Tuesday’s reports showed efforts to boost consumer activity continue to fall flat, with retail sales expanding 4.8 percent last month, well below estimates in a Bloomberg study and highlighting the work leaders face in kickstarting the economy.China’s recovery has been hamstrung by a bruising trade war with the United States, driven by Trump’s sweeping tariffs, though the two de-escalated their spat with a framework for a deal at talks in London last month.But observers warn of lingering uncertainty.”The national economy withstood pressure and made steady improvement despite challenges,” National Bureau of Statistics (NBS) deputy director Sheng Laiyun told a news conference.”Production and demand grew steadily, employment was generally stable, household income continued to increase, new growth drivers witnessed robust development, and high-quality development made new strides,” he said.And the US president upped the ante Monday, warning Russia’s trading partners — which include China — that he will impose tariffs reaching 100 percent if Moscow fails to end its war on Ukraine within 50 days.After a strong start to the day, Hong Kong pared an early rally while Shanghai dipped into negative territory.Elsewhere, Tokyo, Sydney, Singapore, Wellington, Taipei and Jakarta rose, with Seoul and Manila in the red.Trump also Monday said he will impose antidumping duties on most imports of fresh tomatoes from Mexico, with the US Commerce Department accusing its neighbour of engaging in unfair trade.That came after he said he would hit the country and the European Union with 30 percent levies, having announced a slew of measures against key partners last week if deals are not struck by August 1.However, analysts said investors viewed the warnings as negotiating ploys rather than a genuine move, citing previous threats that were later rowed back.The mixed performance in Asian markets followed a healthy day on Wall Street, where the Nasdaq hit another record high.Bitcoin edged down after hitting a record high above $123,200 on Monday thanks to optimism over possible regulatory changes for crypto assets in the United States.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 39,507.28 (break)Hong Kong – Hang Seng Index: UP 0.5 percent at 24,315.92Shanghai – Composite: DOWN 0.4 percent at 3,503.99Euro/dollar: UP at $1.1674 from $1.1670Pound/dollar: UP at $1.3434 from $1.3428Dollar/yen: DOWN at 147.63 yen from 147.77 yenEuro/pound: UP at 86.90 pence from 86.88 penceWest Texas Intermediate: DOWN 0.4 percent at $66.70 per barrelBrent North Sea Crude: DOWN 0.3 percent at $68.98 per barrelNew York – Dow: UP 0.2 percent at 44,459.65 (close)London – FTSE 100: UP 0.6 percent at 8,998.06 (close)

China’s economy expanded more than five percent in the second quarter of the year, official data showed on Tuesday, after analysts predicted strong exports would provide crucial support despite trade war pressures.The country’s leadership is fighting a multi-front battle to sustain growth, a challenge made more difficult by Donald Trump’s tariff campaign.The US president has imposed tolls on China and most other major trading partners since returning to office in January, threatening Beijing’s exports just as it becomes more reliant on them to stimulate economic activity.The two superpowers have sought to de-escalate their trade spat after reaching a framework for a deal at talks in London last month, but observers warn of lingering uncertainty.Trump upped the ante on Monday, warning Russia’s trading partners — which include China — that he will impose “very severe” tariffs reaching 100 percent if Moscow fails to end its war on Ukraine within 50 days.Western nations have repeatedly urged China — a key commercial ally of Russia —  to wield its influence and get Vladimir Putin to stop his three-year-old war with Ukraine.Official data on Tuesday showed the Chinese economy grew 5.2 percent in April-June, matching a prediction by an AFP survey of analysts.But retail sales rose 4.8 percent on-year, below the 5.3 percent forecast in a Bloomberg survey of economists, suggesting efforts to kickstart consumption have fallen flat.However, factory output gained 6.8 percent, higher than the 5.6 percent estimate.”The national economy withstood pressure and made steady improvement despite challenges,” National Bureau of Statistics (NBS) deputy director Sheng Laiyun told a news conference.”Production and demand grew steadily, employment was generally stable, household income continued to increase, new growth drivers witnessed robust development, and high-quality development made new strides,” he said.- Optimism -Data from the General Administration of Customs on Monday showed exports rose much more than expected in June, helped by the US-China trade truce.Imports also rose 1.1 percent, higher than the 0.3 percent gain predicted and marking the first growth this year.Customs official Wang Lingjun told a news conference on Monday that Beijing hoped “the US will continue to work together with China towards the same direction”, state broadcaster CCTV reported.The tariff truce was “hard won”, Wang said.”There is no way out through blackmail and coercion. Dialogue and cooperation are the right path,” he said.However, many analysts are anticipating slower growth in the next six months of the year, with persistently sluggish domestic demand proving a key drag.Data released last week showed that consumer prices edged up in June, barely snapping a four-month deflationary dip, but factory gate prices dropped at their fastest clip in nearly two years.The producer price index, which measures the price of wholesale goods as they leave the factory, declined 3.6 percent year-on-year last month, extending a years-long negative run.Economists argue that China needs to shift towards a growth model propelled more by domestic consumption than the traditional key drivers of infrastructure investment, manufacturing and exports.Beijing has introduced a slew of measures since last year in a bid to boost spending, including a consumer goods trade-in subsidy scheme that briefly lifted retail activity.

Major stock markets on Monday largely shrugged off US President Donald Trump’s latest tariffs threat to hit the EU and Mexico with 30 percent levies.Analysts said investors viewed the warning as yet another negotiating ploy against America’s trading partners rather than a genuine move — although lingering uncertainty weighed on oil prices.US shares initially dipped on Trump’s threat — which is due to take effect at the start of August — but then pushed higher, with the Nasdaq edging to a fresh record.”The market is betting that by August 1st these tariffs are not going to be implemented at these levels,” said Peter Cardillo of Spartan Capital Securities. “And so the market continues to rally.”European indices finished largely down, but with no sign of panic selling. London’s FTSE climbed.Many Asian markets closed lower, but not Shanghai and Hong Kong.Markets believe the latest threat of 30-percent tariffs on the EU, the United States’ biggest trading partner, was “Trump-style brinkmanship — sound and fury meant to shake down concessions before the August 1 deadline,” explained Stephen Innes, managing partner at SPI Asset Management.”Financial markets are acting like the 30-percent rate is a mere tactic from Donald Trump, rather than a reality,” agreed Kathleen Brooks, research director at XTB.Yet some, including Kim Heuacker, an associate consultant at Camarco, noted “there remains the genuine risk that, to save face, he (Trump) may activate the high tariffs.”The European Union, stung by Trump’s unexpected raising of the stakes amid trade negotiations, is looking at targeting 72 billion euros’ ($84 billion) worth of US imports if talks with Washington fail, its trade chief, Commissioner Maros Sefcovic, said.With Trump’s threat being discounted, bandwidth was given to other news.Bitcoin struck a record high above $123,000, fueled by possible regulatory changes for crypto assets in the United States.Attention was also focused on Trump on Monday vowing “very severe tariffs” on Russia’s trade partners if Moscow did not resolve its war in Ukraine within 50 days.Oil traders initially saw those sanctions constricting supply, and they pushed crude prices higher — before selling off under the cloud of a possible broader trade war that would depress global demand.Besides tariffs, markets are looking ahead to earnings from JPMorgan Chase, Bank of America and other banks that will offer updates on the state of US consumers and on the health of the companies’ trading and investment businesses.Markets are also awaiting US government reports on consumer pricing and retail sales for June, which will inform expectations on the likelihood and timing of Federal Reserve interest rate changes. Futures markets are betting on a Fed interest rate cut in September.- Key figures at around 2030 GMT -New York – Dow: UP 0.2 percent at 44,459.65 (close)New York – S&P 500: UP 0.1 percent at at 6,268.56 (close)New York – Nasdaq Composite: UP 0.3 percent at 20,640.33 (close)London – FTSE 100: UP 0.6 percent at 8,998.06Paris – CAC 40: DOWN 0.3 percent at 7,808.17 Frankfurt – DAX: DOWN 0.4 percent at 24,160.64Tokyo – Nikkei 225: DOWN 0.3 percent at 39,459.62 (close)Hong Kong – Hang Seng Index: UP 0.3 percent at 24,203.32 (close)Shanghai – Composite: UP 0.3 percent at 3,519.65 (close)Euro/dollar: DOWN at $1.1670 from $1.1689Pound/dollar: DOWN at $1.3428 from $1.3493Dollar/yen: UP at 147.77 yen from 147.43 yenEuro/pound: UP at 86.88 pence from 86.64 penceBrent North Sea Crude: DOWN 1.6 percent at $69.21 per barrelWest Texas Intermediate: DOWN 2.2 percent at $66.98 per barrel

The European Union is seeking “fair competition” with China and not a race to the bottom in wages and environmental standards, the bloc’s vice president for the clean transition told AFP in Beijing on Monday.Deep frictions exist over economic relations between the 27-nation bloc and China.Brussels is worried that a manufacturing glut propelled by massive state subsidies could add to a yawning trade deficit and result in a flood of cheap Chinese goods undercutting European firms.Speaking during a visit to Beijing ahead of a major EU-China summit in the city this month, Teresa Ribera dismissed China’s claims that the bloc was engaging in “protectionism”.”We Europeans don’t want to go down a race towards low incomes, lower labour rights or lower environmental standards,” said Ribera, who also serves as the bloc’s competition chief.”It is obvious that we could not be in a good position if there could be an… over-flooding in our markets that could undermine us with prices that do not reflect the real cost,” she said.The EU imposed extra import taxes of up to 35 percent on Chinese electric vehicle imports in October and has investigated Chinese-owned solar panel manufacturers.Asked whether EU moves against Chinese green energy firms could harm the global transition to renewables, Ribera said she accepted that “it is fair to say that, yes, we may benefit in the very short term” from cheaper imports.However, she also warned “it could kill the possibility” of long-term investment in the bloc’s future.- ‘Lack of ambition’ -Ribera also met with China’s Vice Premier Ding Xuexiang on Monday for a roundtable discussion.She warned in opening remarks that “the possible lack of ambition by major emitters is a concern to the international community and to our citizens” and called for great action.Ding, in turn, hailed China’s “participation in global environmental governance”.And at a later news conference, Ribera praised the “deep and positive conversation” with Chinese officials.But, she added, there was “great room for improvement”.”In order to improve, we need to identify what are the points of concerns coming from each side,” she said.A solution to trade tensions sparked by Brussels’s concerns of Chinese industrial overcapacity “will come”, she added — but “not today”.- Global disruption -Ribera’s visit comes as China seeks to improve relations with the EU as a counterweight to superpower rival the United States, whose President Donald Trump has disrupted the global order and pulled Washington out of international climate accords.”I don’t think that we have witnessed many occasions in the past where a big economy, a big country, decides to isolate in such a relevant manner,” Ribera told AFP.”It is a pity… The Chinese may think that the United States has given them a great opportunity to be much more relevant in the international arena.”The visit also comes as the bloc and the United States wrangle over a trade deal. Trump threw months of negotiations into disarray on Saturday by threatening sweeping tariffs on the bloc if no agreement was reached by August 1.Ribera vowed on Monday that the EU would “defend the interests of our companies, our society, our business”.Asked if a deal was in sight, she said: “Who knows? We’ll do our best.”However, she insisted that EU digital competition rules — frequently condemned by Trump as “non-tariff barriers” to trade — were not on the table.”It’s a question of sovereignty,” Ribera said.”We are not going to compromise on the way we… defend our citizens and our society, our values and our market.”