Figure 1: Bottarelli, M. (2024, October 24). Il segreto di Pulcinella dietro il rialzo di oro e argento. IlSussidiario.net. https://www.ilsussidiario.net/news/spy-finanza-il-segreto-di-pulcinella-dietro-il-rialzo-di-oro-e-argento/2763760/

Gold has shown an impressive performance in the first nine months of the year, with gains of +28.1%, +27.2%, and +28.3% in US dollars, Euros, and Swiss Francs, respectively. Year-on-year, the results are even more remarkable, with increases of +42.3%, +35.0%, and +31.1% as of the end of September. These figures naturally prompt the question: has gold’s price reached its peak, or is it in a bubble, similar to the early 1980s, with a major correction looming? What we can surely assume is that there are several factors that influenced gold performance.

Gold demand driven by Central Banks

In 2024, gold has emerged as one of the top-performing global assets, with central banks playing a significant role in driving demand. Notably, central banks from China, Turkey, and India collectively added over 1,000 metric tons of gold in both 2022 and 2023, a trend that has continued into this year, according to the World Gold Council’s June 2024 Central Bank Gold Reserves report.

In the first quarter of 2024, global official gold reserves grew by 290 metric tons, marking the largest first-quarter increase since 2000 and exceeding the five-year quarterly average by 69%. In May, central banks reported additional purchases totaling 10 metric tons, as noted by the International Monetary Fund (IMF).

In Q2/2024, central banks displayed varied approaches to gold accumulation: while China significantly slowed its purchasing pace, India noticeably accelerated. India increased its gold reserves by 18.7 tonnes in Q2/2024. This follows a similar increase in Q1/2024, resulting in a 4.6% rise in India’s reserves within just six months. Poland’s central bank has also been accumulating during the past year and it now holds 420 tonnes in reserves, surpassing the UK and signaling an eastward shift in Europe’s economic balance.

Interest rate cut cycle impact to gold

Figure 2: Polymarket. (n.d.). What price will gold close at in 2024? Polymarket. Retrieved October 31, 2024, from
https://polymarket.com/event/what-price-will-gold-close-at-in-2024?tid=1730396589868

Months ahead of the FED meeting, predictions markets were already expecting a rate cut before the end of 2024 with probabilities ranging from 40% up to 80% for a 25 bps rate cut and around 20 – 35% for a 50 bps rate cut. On Wednesday, September 18, the Federal Reserve made headlines by cutting interest rates for the first time since July 2019, with a surprising reduction of 0.50 percentage points. The last times such a significant rate cut was made were in January 2001 and September 2007, both during periods of economic distress. This new phase of rate cuts is expected to support an increase in gold prices, as has been the case in each of the three previous rate-cut cycles since 2000.

During the 2019/2020 rate cut phase, factors such as a slowing US economy, the trade dispute with China, and the onset of the COVID-19 pandemic saw gold prices rise by more than one-third, from USD 1,400 to around USD 1,900.

Figure 3: Durden, T. (2024, October 31). 5 reasons why the gold rally is not over yet. ZeroHedge. https://www.zerohedge.com/precious-metals/5-reasons-why-gold-rally-not-over-yet

Geopolitical tensions remain high

The war in Ukraine has now been ongoing for over 2½ years, while tensions in the Middle East also escalated in late September following Israel’s substantial attacks on top Hezbollah figures and the ground invasion of Lebanon. The risk of a larger-scale conflict looms heavily over these two regions, like the sword of Damocles.

This increasingly unstable geopolitical landscape is reflected in central banks’ balance sheets. Massive gold purchases by central banks since 2009, coupled with rising gold prices, have led to gold comprising a larger share of global international reserves at the expense of fiat currencies. By the close of 2023, gold will have surpassed the euro in global reserves, making it the second-most held reserve asset by central banks, with the US dollar still holding the top spot. However, the dollar’s share in FX reserves has dropped below 60%, down from two-thirds in 2015. The upcoming BRICS summit in Kazan (Russia) from October 22-24 may indicate whether the shift away from the US dollar will accelerate and whether gold, as a neutral reserve asset, will see an additional surge in demand driven by geopolitical factors.

China and Gold Rise

Gold, commonly viewed as a safe investment in times of geopolitical and economic instability, has seen a significant surge in value following Russia’s invasion of Ukraine and the conflict in Gaza. However, its sustained rise above $2,500 per ounce has been more enduring, largely driven by factors emerging from China.China’s central bank plays a crucial role in this trend. In March, the People’s Bank of China (PBOC) boosted its gold reserves for the 18th consecutive month, making China the world’s largest central bank purchaser of gold in 2023, with its highest accumulation in nearly five decades.
Despite its previously strong demand for gold, China recently slowed its purchases, with the PBoC reporting no increase in gold reserves in June, marking the second consecutive month at a stable 2,264 tonnes, or 4.9% of total reserves. Given the significant price increases seen this year, J.P. Morgan noted that central banks may shift towards “structural” gold buying, adopting a “more tactical” approach to price movements.

Historically, China increased its gold reserves using domestic renminbi; however, the central bank has now shifted to purchasing gold with foreign currencies, according to Guan Tao, global chief economist at BOC International. This strategic change helps China reduce its exposure to the U.S. dollar and other major currencies. “China is unquestionably driving the price of gold,” remarked Ross Norman (2024), CEO of London-based MetalsDaily.com. “The flow of gold to China has gone from solid to an absolute torrent.”

The PBoC’s substantial gold purchases could be viewed within the framework of its strategy to reduce its reliance on US-dollar reserves. These purchases align with Beijing’s long-term strategy to diversify reserve holdings and reduce reliance on the U.S. dollar. China has consistently lowered its U.S. Treasury holdings over the past decade, with its U.S. debt holdings dropping from $1.1 trillion in 2021 to around $768.3 billion by May 2024, according to official US data. This shift is unfolding amid rising US-China tensions, characterized by an intensifying trade war and US-led sanctions targeting both China and Russia, contributing to a marked downturn in relations between these economic powerhouses.

“The main motivation of the PBoC is to be less dependent on the US dollar and—in an extreme case—to be less susceptible to US sanctions,” Carsten Menke (2024), an analyst at Julius Baer. Menke (2024) anticipates that China’s reserve diversification strategy will persist, citing “the geopolitical tensions between China and the United States are unlikely to disappear anytime soon, independent of the outcome of the US presidential elections.”

China’s accelerated de-dollarization efforts are also tied to its commitments within BRICS+. This growing bloc has emphasized its goal of increasing trade and investment among member countries while prioritizing the use of local currencies in bilateral trade, reducing dependence on the US dollar. Additionally, ongoing discussions around a BRICS currency backed by gold may further explain recent robust gold purchases. The World Bank noted that by Q1 2024, central banks within BRICS+ collectively held nearly 17% of all gold held by central banks worldwide, with Russia, India, and China among the top ten global holders. Although no official announcement has been made about a new currency, speculation around a potential gold-backed BRICS currency continues to mount.

Despite China’s substantial purchases, gold still accounts for only 4.9% of the nation’s foreign reserves, compared to India, where nearly double that percentage of reserves is held in gold, showing a stronger emphasis on the metal within its strategy.  “China’s gold reserves need to rise in absolute and relative terms because they do not match the status of the world’s second-largest economy, and gold’s share of its reserves is the lowest of any major economy,” a recent Reuters report stated.

Figure 4: Moss, J. (2024, August 14). What’s behind China’s gold-buying spree? International Banker. https://internationalbanker.com/banking/whats-behind-chinas-gold-buying-spree/

Alongside heavy central bank acquisition, retail demand for gold in China has surged, catching the attention of speculators on the Shanghai markets, where many are betting on the continuation of this upward trend. Reflecting this interest, the Shanghai Futures Exchange reported a more than doubling of average trading volume for gold in April compared to the same period last year.

As reported by the China Gold Association, gold consumption in China rose by 6% in the first quarter of 2024, following a 9% increase in the previous year. Gold has gained appeal as traditional investments have struggled to deliver returns. The ongoing crisis in China’s real estate sector—where most families typically invest their savings—alongside lingering low confidence in the stock market, has further driven this trend. Several large investment funds aimed at high-net-worth individuals have collapsed due to failed real estate investments, reducing available investment options. Consequently, capital has shifted into Chinese gold funds, with many younger investors even beginning to purchase small amounts of gold as a safe alternative.

Kessel ,A., July 02, 2024, Gold Shines So Far in 2024 as Central Banks Invest Heavily, https://www.investopedia.com/gold-shines-so-far-in-2024-as-central-banks-invest-heavily-8672711

Zhou, L., May 04, 2024, 一口气了解黄金 | 为什么暴涨? 投资黄金需要注意什么? ,https://www.youtube.com/watch?v=B4jIyufgy-s

Daisuke Wakabayashi & Claire Fu, May 05 2024,  China Is Buying Gold Like There’s No Tomorrow, https://www.nytimes.com/2024/05/05/business/china-gold-price.html

Holm, S., March 01, 2024, 2024 Gold Price Forecast: Expert Analysis and Predictions, https://www.morpher.com/blog/2024-gold-price-forecast

Wang, F., Oct 12 2024, Gold Performance and how much will gold price increase in Q4, https://www.markets.com/news/gold-performance-2024-and-how-much-will-gold-price-increase-in-q4

Durden, T., Oct 17, 2024, 5 Reasons Why The Gold Rally Is Not Over Yet, https://www.zerohedge.com/precious-metals/5-reasons-why-gold-rally-not-over-yet

VBL, May 16, 2024, Gold: China Correlations Matter, https://www.zerohedge.com/news/2024-05-15/unlocked-gold-correlates-china-rates

Moss, J., Aug 14, 2024, What’s Behind China’s Gold-Buying Spree?, https://internationalbanker.com/banking/whats-behind-chinas-gold-buying-spree/

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The growth of the Chinese EV industry alarmed many lawmakers and politicians in the EU, which on Friday (04/10/2024) voted on the imposition of tariffs on imported electric vehicles from China.

The vote was expected to pass, even as German opposition, led by Olaf Scholz, did its utmost to oppose the bill. Germany voted against the proposal, taking a more committed position than the one assumed in July, when Germany abstained instead. German industrial groups, comprehending nearly every automaker, and labor unions like IG Metall had pressured the government to not allow further tariffs on Chinese automakers, warning that Beijing was expected to retaliate with broader measures or probes on European goods.

“We said unequivocally: tariffs were the wrong approach because they would not improve the competitiveness of the European automotive industry,” both the German automakers and labor unions stated in a joint statement.

Spain also expressed the desire to see Brussels negotiate and reach a compromise with China regarding this matter during its visit last month to China, pointing out that a trade war should have been avoided. Hungary was also expected to vote against the bill as the country was searching for more support and investment outside the European Union.

The push to protect the EU’s market share on new energy vehicles was supported instead by countries far less exposed than Germany to the Chinese market, like France, Italy, and Poland, which were expected to put their weight behind supporting the bill. The imposition of tariffs constituted a first achievement by the current EU commission led by Ursula Von Der Leyen, which was reelected on a mandate of “de-risking” trade relations with China.

However, the impact of an eventual isolationist policy regarding green energy goods from China was uncertain for the European transition to a net-zero economy. As things stood, the lack of competitiveness of European green energy products, including solar panels and electric cars, in comparison to their Chinese counterparts risked leaving the EU out of the transforming global energy market and delaying the bloc’s green energy transition.

[1] Germany to vote against EU tariffs on Chinese electric vehicles. (2024, October). Reuters. https://www.reuters.com/business/autos-transportation/germany-vote-against-eu-tariffs-chinese-electric-vehicles-sources-say-2024-10-03/

[2] Reuters. (2024, October 3). German union, auto workers call on Germany to vote against EU tariffs on Chinese EVs. Reuters. https://www.reuters.com/business/autos-transportation/german-union-auto-workers-call-germany-vote-against-eu-tariffs-chinese-evs-2024-10-03/ 

[3] Liboreiro, J. (2024, September 11). Sánchez urges the EU to “reconsider” tariffs on Chinese electric cars, exposing cracks. Euronews. https://www.euronews.com/my-europe/2024/09/11/sanchez-urges-the-eu-to-reconsider-tariffs-on-chinese-electric-cars-exposing-cracks

[4] Reuters. (2024b, October 3). Hungary will veto EU plan to impose Chinese EV tariffs -foreign minister. Reuters. https://www.reuters.com/business/autos-transportation/hungary-will-veto-eu-plan-impose-chinese-ev-tariffs-foreign-minister-2024-10-03/[5] France. (2024, October 4). EU states set to greenlight extra tariffs on EVs from China. France 24. https://www.france24.com/en/live-news/20241004-eu-states-set-to-greenlight-extra-tariffs-on-evs-from-china

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As the US presidential election gradually closes in, and at the time of publishing may have already concluded, we explore the consequences of a US presidential race that has already captured the world’s attention. Will a return of Trump to the White House further destabilize the already frail US-China bilateral relations? Will Kamala Harris be capable of reinforcing the American presence in the Indo-Pacific and its Asian allies?

In this article, we discuss the ideas and speculations regarding the outcomes of the elections and how Beijing is reacting in the wake of potential instability in the following days.

On Monday, the 4th of November, the NPC (The National People’s Congress), the top legislative body in China, is expected to initiate a new round of capital injections into Chinese banks and initiate new swaps of debts between local governments to stabilize the economy. As China started a fiscal stimulus on September 24th to bolster the national economy and reach the yearly growth target, the news of no further stimulus may be disappointing for investors and foreign firms but may be a prudent policy decision to impose a floor under the Chinese economy in an attempt to mitigate further risks due to external factors.

However, China has been conspicuously absent in the official rhetoric of both candidates in the election. Trump has largely focused on the internal grievances of the American people (even the tariffs are discussed as a way to protect and reindustrialize American manufacturing), while Harris has tried to leverage the divisive rhetoric and the controversial proposals of the Republican candidate, like Project 2025. Nonetheless, neither candidate is expected to lead to a substantial improvement in bilateral relations with China, as the Biden-Harris administration has not removed most Trump-era tariffs and has instead imposed new ones directed at China’s green energy sector, while Trump is expected to impose a new round of sanctions against China.

To sum it up, neither candidate is expected to reduce the tech curbs to limit China’s technological and scientific progress, and further academic limitations are to be expected.

From a security perspective, however, there is a general sentiment that a Trump administration would be less committed to the present security framework involving American allies, as Trump has repeatedly talked about peace in Ukraine and a presumed “price” that Taiwan is not paying for its security

.
But instead of labeling Trump as an “isolationist,” it would be more accurate to say that Trump is concerned about the cost burden that falls on the US instead of questioning the security framework itself. J.D. Vance, running partner of former President Trump, made it very clear that Europe would have to step up its contribution to its own security regarding the conflict in Ukraine, sparking fear about a lack of commitment from European partners. Would a Harris presidency be a prospect of stability in American foreign affairs?

Probably, as she is expected to largely inherit the current administration’s attitude and policies regarding China, Europe, and the Middle East. From Beijing’s standpoint, though, the geopolitical conflicts that are presently deteriorating arguably the world’s most important bilateral relationship will largely remain unchanged. But as Trump’s return to the White House begins to materialize, China will start to prepare measures to weather the coming storm of renewed tensions that risk further fragmenting supply chains and global trade.

04/11/2024

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In the first half of the 20th century, China was governed by the Qing dynasty, and it was mainly an agricultural society. In 1911 the Qing dynasty fell due to the revolution and the Chinese Republic was established led by Sun Yat-sen and the Kuomintang (party). However, the country was fragmented because different regions were controlled by “warlords” (local leaders). In 1921, the Chinese Communist Party was founded, initially allied with the Kuomintang, but relations deteriorated in 1927 when Chiang Kai-shek launched an offensive against the communists. 

In 1934 Mao Zedong and the communists embarked on the Long March, a retreat of about 9,000 km that solidified Mao as the leader. 

During the Second Sino-Japanese War (1937- 1945), the communists employed guerrilla tactics (formations of men characterized by surprise attacks or ambushes), gaining popular support through land distribution to the peasants. After the Japanese defeat in 1945, the civil war continued, and the communists triumphed over the Kuomintang, so they retreated to Taiwan, where it continued to call itself the Republic of China. Subsequently, the People’s Republic of China was established in 1949. The Communists’ victory was due to their greater cohesion and agricultural policies, which ensured broad popular support, while the Kuomintang suffered from corruption and inflation. After the victory, Mao established a socialist one-party regime, maintaining power until he died in 1976. 

Successively, in the 1980s, Deng Xiaoping opened China to the market through an economic reform. Compared with other communist regimes that collapsed, China was able to create an effective mixed economy system.

Fonzo, E. (2023, January 29). La Rivoluzione Cinese di Mao in breve: Come la cina è diventata un paese comunista. Geopop. https://www.geopop.it/la-rivoluzione-cinese-di-mao-in-breve-come-la-cina-e-diventata-un-paese-comunista/

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China is pursuing global dominance in financial technology and the initial research on the digital currency can be traced back to the early 2010s. The main motivations behind e-CNY, the central bank digital currency (CBDC) developed under the project called Digital Currency/ Electronic Payment (DCEP), is to advance China’s technical and economic prowess, enhance payment efficiency, reduce the reliance on physical cash, strengthen CCP control over the Chinese population and counter U.S. financial influence around the globe.

e-CNY is the ‘world’s first cryptocurrency backed by Chinese bank reserves’ and it’s a digital version of the national currency, the yuan (CNY). Unlike decentralized cryptocurrencies like Bitcoin, e-CNY is issued and regulated by the central bank and its value is stable and guaranteed by the Chinese state. The digital yuan can be stored in a digital wallet, and transactions are conducted through mobile devices or other compatible platforms. Users can make payments without internet connection by scanning QR codes, enabling swift and contactless transactions. Differently from digital payments today, DCEP transactions will be authenticated immediately without relying on third-party services.

China’s push for DCEP comes from a twofold motivation: to promote domestic economic dynamism, but with greater state control, and to gain strategic positioning and influence globally. Over the last several years, mobile transactions accounted for four of every five payments in China, the use of mobile payment platforms has exploded in China while cash transactions have declined. The dominance of private mobile payment firms in China has given such companies an outsized role in retail commerce, making them indispensable to the economy. The People’s Bank of China (PBOC) is seeking a digital currency to harness the market share and technological innovation of private financial firms and to gain better access to information about the financial activities of Chinese consumers, enhance monetary policy and monitor illegal activity. Regarding safeguarding users privacy, PBOC officials have also stated that DCEP will have ‘controllable anonymity’, maintaining privacy among transacting parties.

Moreover, e-CNY could enable easier and more efficient cross-border transactions, which could enhance Chinese firms’ flexibility in global trade and potentially challenge the dominance of existing international payment systems. The chinese government aims to make the yuan the global reserve currency in the 21st century and the e-CNY’s success could lead to more use of the Chinese currency in international commerce.

The Central Bank of China is testing its Digital Currency Electronic Payment (DCEP) in several localities, including cities such as Shenzhen, Suzhou, Chengdu and Xunan with the involvement of four large state-owned banks and a number of state-owned banks and technology firms are building interfaces and distribution systems for the platform. The PBOC made e-CNY also available for wider use around the time of the 2022 Winter Olympics, hosted in Beijing and the e-CNY wallet app briefly topped the charts for the most downloaded app on Apple’s China App Store.

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China’s real estate market, once a pillar of the country’s economic growth, has recently seen a massive decline that many consider a collapse. This economic recession has seriously affected not only the Chinese market but also the global market.

As China’s real estate makes up around 29% of the nation’s GDP, it has always been considered a key point by investors and still plays a central role in the Chinese economy. This boom was mainly driven by rapid urbanization, a growing middle class, and a cultural preference for real estate. However, despite all the benefits it has brought over the years, this growth has been accompanied by increasing levels of debt among real estate investors and developers, causing concerns about the financial stability of the economy.

The crisis arose in 2021, when Evergrande, one of China’s largest property developers, encountered difficulties paying back its massive debt, estimated at $300 billion. This disaster revealed the industry’s larger problem of excessive leverage. Indeed, in opposition to the developer’s expectations who had taken significant debt to fund expansion, the real estate demand has notably started decreasing, which caused many leading real estate companies not to be able to pay their debt back. Moreover, the situation deteriorated when the Chinese government published the so-called ‘three red lines’ policy, which consisted of regulations regarding real estate companies’ financial solidity such as liabilities not exceeding 70% of assets, net debt not being greater than 100% of equity, and money reserves being at least 100% of short-term debt.

The real estate crisis brought various repercussions in many fields. Firstly, there is a direct impact on the economy. The slowdown in real estate has decreased demand for construction materials and labor. It also impacted households since property is one of the most popular investment vehicles in China. Indeed, declining prices and halted projects have diminished household wealth and consumer trust.

Secondly, there are financial implications. The real estate sector is heavily connected to the financial system, with banks and other financial institutions heavily exposed to property loans. The decline in the sector raises concerns about excessive debts and financial instability.

Finally, it also brought serious social consequences. Many construction projects have been stopped because of the real estate sector crisis, leaving many customers who have paid cash for their homes in crisis. Moreover, several protests and social disorders have broken out in response to this downturn.  

In conclusion, the Chinese real estate market’s collapse is a significant development with broad outcomes for the country’s economy, finances, and society. It acts as a warning to other fast-developing economies and highlights the risk of excessive debt and speculative investment in any industry. To manage this crisis, the Chinese government must find a careful balance between stabilizing the real estate sector and preventing larger social and economic troubles.

The post China’s Real Estate: A Quick Overview of the Crisis first appeared on Bocconi Chinese Student Association.

China has a multitude of global opportunities in a wide range of industries in the upcoming ten years. Its robust economy, characterised by steady growth, attracts investors and enterprises from throughout the world. Foreign investments are encouraged by the nation’s dedication to economic innovation and transformation.

Uniquely, technological advancement is a major lure. China is a centre for international cooperation and research projects since it is a leader in biotechnology, 5G, and artificial intelligence. Businesses and professionals in the IT sector can thrive in this fertile environment.

The Belt and Road Initiative (BRI) is reshaping global trade dynamics by connecting continents through massive infrastructure projects. International businesses can participate in these ventures, fostering unprecedented economic cooperation.

China boasts the largest population in the world along with a rapidly growing middle class, making its consumer market extremely promising. For foreign businesses, catering goods and services to Chinese consumers’ as needs is turning out to be a profitable business model.

China’s dedication to sustainable development creates opportunities for foreign companies that specialise in renewable energy and green technology. A market for sustainable solutions is emerging as a result of the nation’s transition to more ecologically friendly practises.

As China strengthens its ties with the global community, there is a growing demand for cross-cultural collaboration. International professionals with an understanding of Chinese business practices and culture are in high demand, facilitating smoother market entry.

While opportunities are abundant, challenges such as navigating regulatory frameworks and understanding cultural nuances should be considered. Success in the Chinese market requires adaptability and a strategic approach.

In conclusion, those looking for outside prospects in China have a lot of hope for the upcoming ten years. With its strong economy, advanced technology, and dedication to international cooperation, China is a hub for people and companies seeking to broaden their horizons. Through comprehension of the distinct terrain and cultivation of cross-cultural connections, individuals and institutions can adeptly situate themselves to prosper in the dynamic Chinese marketplace.

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Over the span of several decades, the remarkable expansion of China’s economy and the growth of its middle class have significantly transformed the country’s role in various industries. Notably, China has experienced a rapid surge in its domestic smartphone market. However, in 2014, Lenovo Group Ltd., the third-largest global smartphone maker, headquartered in Beijing, stated that the era marked by such extraordinary growth was coming to an end. While transitioning into a slower phase, China had already assumed a key role in the industry. Chinese mobile phone manufacturers including Xiaomi, Lenovo, and Huawei, accounted for more shipments in the global smartphone market than Samsung and Apple combined.

The Chinese smartphone industry’s growth was driven by its ability to cater to users across all economic spectrums. Unlike Apple and Samsung, certain Chinese companies have concentrated on providing mid-range, cost-effective products while maintaining features comparable to more expensive phones. Additionally, these manufacturers benefit from a vast domestic consumer base. Nevertheless, the high-end segment of China’s smartphone market remains dominated by Apple, as the iPhone is considered a status symbol by many young Chinese people. However, the increasing dominance of the iPhone has raised concerns, leading several Chinese agencies and state-owned enterprises to prohibit the use of Apple phones by their employees, aligning with a practice already adopted by central government bodies.

Apple’s rise in China, which this year overtook the U.S. as the world’s largest iPhone market, was also propelled by export restrictions imposed three years ago by Washington on Semiconductor Manufacturing International Corporation (SMIC), China’s primary chipmaker. These restrictions aimed at mitigating risks associated with the military application of chip technology.

Telecom giant Huawei’s consistent decline in its smartphone sales in China is partially due to the sanctions that severed its access to advanced chips and equipment from the US. Recently, in an attempt to win back customers lost to Apple, the company unveiled its latest flagship phone: the Mate 60 Pro. The features of this device have ignited debates among industry experts. Notably, the device is equipped with sophisticated 7nm chips designed and produced domestically, hinting at a breakthrough in China’s semiconductor industry. This suggests that the Mate 60 Pro might mark the inception of a new phase in China’s smartphone market, with potentially very profound business and political implications.

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The “Great Sichuan earthquake”, also known as “Wenchuan earthquake”, happened on 12^th May 2008 in the #Sichuan province. The #magnitude of the earthquake was 8.0 and over 69,000 people lost their lives, the deadliest #earthquake in China since 1976 (242,000 dead) and the strongest since 1950 (magnitude 8.6). People felt the earthquake also in #Beijing and Shanghai, from more than 1,500 km away. Within 72 hours, there were 64 to 104 major aftershocks with magnitude from 4 to 6.

At the time, the 2008 #Olympics were being held in Beijing and, fortunately, none of the venues were damaged. However, a major disaster occurred when a train carrying #petrol caused a fire and a leakage of liquid ammonia from two #chemical plants buried hundreds of people. The nightmare lasted about 2 minutes but caused 400,000 injured people and 4.8 million homeless. Almost 80% of the surrounding buildings were #destroyed. The government calculated a total damage of $150 billion, spent over the next three years to rebuild the ravaged areas.

Other major damages included the #blackout in communications in the Sichuan area, as mobile and terrestrial #telecommunications were cut, along with the internet. It would take over 3 months to fully restore the telecommunications system in the region.

The remarkability of the natural #disaster also lies in its global effects; the price of copper increased due to speculation that production in Southwestern China had been affected by the earthquake. The price of oil dropped, with fears that the demand from China would decrease. The trading of companies based in Southwestern China was #suspended on both the Shanghai and Shenzhen stock exchanges.

China’s increased investment in disaster #preparedness means a similar tragedy is unlikely. A major cause of death in 2008 was the collapse of older buildings. The majority of schools in earthquake prone areas have been retrofitted or #rebuilt, and the populations in these areas educated about the risks and hazards relating to earthquakes.

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Back in March 2021, the NYSE announced it would suspend trading in China National Offshore Oil Corporation (Cnooc)’s American depository shares, due to compliance with an executive order banning all Chinese firms on the blacklist. Chinese groups put by the Pentagon on the blacklist are accused of working with the People’s Liberation Army and threatening US security. Cnooc is considered a threat by the US because it is China’s third-largest oil company and is controlled by the central government.

After leaving the New York Stock Exchange in October 2021, Cnooc listed its shares on the Shanghai Stock Exchange, where it raised about $4.4 billion, being the third-largest equity capital market deal of the year. After opening 20% higher than its Hong-Kong listed shares, Cnooc’s shares jumped by 44%, reaching Rmb 15.55, far above the offering price of Rmb 10.8.

The home listing is part of Cnooc’s plan. The increasing oil prices have favoured the state-controlled oil major as its net profit made a record high last year, reporting 70.3 billion Rmb. The surge in prices following Russia’s invasion of Ukraine implies Cnooc expects first-quarter profit to grow by 89 per cent from a year earlier. Despite pressure on the Chinese GDP due to the restrictions of the zero-covid policy, the IPO was very successful and highlighted the strong demand for listings within China’s equity market.

The funds would be employed in financing the development of various oil fields. More specifically, the proceeds would be used to fund one gas and seven oilfield projects in China and overseas. China’s largest offshore also added that it will use the home financing channel together with the abroad one to promote quality growth and create value for shareholders.

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