Tighter US investment rules aimed at China

THE U.S. federal government will tighten rules on foreign investment in sensitive industries like technology and telecommunications next month, as it starts to enforce a law aimed at curbing Chinese investment in 27 sensitive sectors.

The Committee on Foreign Investment in the United States reviews mergers and stock purchases to ensure they do not harm national security. It was strengthened by legislation in the National Defense Authorization Act that was signed into law in August. Much of the panel’s highest profile work focuses on Chinese companies, which have tried to buy U.S. high-end semiconductor makers and other tech companies.

Alibaba exec warns of trade spat pain

THE escalating trade spat between the United States and China is careening toward a “cold war or geopolitical war” that will reverberate around the world, a senior executive at Alibaba Group said.

Joe Tsai, Alibaba’s executive vice chairman, accused the United States of starting the trade war over “an unfounded fear” that China’s rise threatened the national security of the American people, the South China Morning Post said Thursday.

Ganfeng Lithium in dreadful HK debut

GANFENG Lithium Co. fell 20 percent on its first day of trade in Hong Kong on Thursday.

Prices for lithium, a key ingredient in rechargeable batteries used in electric cars, have halved in China this year due to oversupply, hurting near-term earnings prospects for lithium producers. The longer term outlook is, however, brighter as the government actively promotes electric cars to combat air pollution.

IMF chief says China faces balancing act

INTERNATIONAL Monetary Fund chief Christine Lagarde said Thursday that she believes Chinese authorities are trying to maintain growth and stability in the face of a trade conflict with the United States, but added that this is a “complicated” balancing act.

“The Chinese authorities are certainly looking at options, I would think, in order to maintain a level of growth that would keep the economy under control, and we are seeing recent decisions from the People’s Bank of China to that effect,” Lagarde said. “I think that it’s a complicated equation, where they have to both use the flexibility that is available, but at the same time be very attentive to their fiscal position,” she added.