5/18/2021 Financial News: CCP Extends Tariff Exemption For 79 U.S. Products, Eve Energy Denies Deal To Provide Tesla Batteries

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1.CCP extends tariff exemption for 79 U.S. products

CCP will extend a tariff exemption for 79 products imported from the United States that is due to expire on May 18, the finance ministry said in a notice published on Monday. The products include rare earth ore, gold ore, and silver ore and concentrate, an attached list shows. The exemption will be extended until Dec. 25, it said. The products originally received exemptions from retaliatory tariffs CCP imposed on U.S. goods as counter measures to U.S. Section 301 action. CCP has previously extended exemptions made during rounds of tariffs between the world’s two biggest economies.

2.Shenzhen-listed Eve Energy denies deal to provide Tesla batteries

Recently, according to people familiar with the matter, Tesla is negotiating with Yiwei Lithium Energy and intends to include the company as a supplier to its Shanghai plant. Tesla hopes to finalize the cooperation between the two parties in the third quarter. Yiwei Lithium Energy is currently testing some of the final stage products supplied to Tesla-lithium iron phosphate batteries. If the negotiation is successful, Yiwei Lithium Energy will become Tesla’s second LFP battery supplier in Communist China after CATL.

Affected by the news, Yiwei Lithium Energy’s stock price also soared. In the trading day last Friday, Yiwei Lithium Energy rose by about 10%. Regarding the rumors of supplying Tesla, Yiwei Lithium released an announcement on May 16 that it had not conducted business communication with Tesla on lithium iron phosphate batteries. If Yiwei Lithium strictly abides by the information disclosure regulations, the announcement information shall prevail. At the close of trading on May 17, its stock price rose 5.51% to close at 101.90 yuan (USD $15) . It is reported that Yiwei Lithium Energy will expand its production capacity to 10GWh by the end of this year.

3.To meet the needs of digital transformation, Huawei will reform the existing partner system

On the 17th, Huawei China Ecological Conference 2021 opened in Shenzhen. The main objective of this event is for aspiring ecological partners to utilize the opportunities and work together to contribute to a major part in industrial digital transformation. Huawei’s rotating chairman Xu Zhijun said that in order to adapt to the requirements of digital transformation, Huawei will reform the existing partner system and create a truly capable partner system. Xu Zhijun also stated that Huawei hopes to jointly build a healthy market order and clarify three types of red-line prohibited behaviors. If a red-line behavior occurs, Huawei employees are delisted internally, and partners are blacklisted. If they violate the law, they will be handed over to the judicial authorities.

4.Communist China posts slower growth April

Communist China on Monday posted weaker-than-expected growth for some key economic indicators for April, shining a spotlight on lackluster recovery of some crucial growth drivers – most notably of the consumer market. Industrial output rose 9.8% in April from a year earlier versus the median estimate for a 10% increase. Retail sales expanded 17.7% in the period, far slower than a projected 25% rise. Fixed-asset investment grew 19.9% in the first four months of the year, in line with forecasts. The unemployment rate was lower at 5.1%.

Both consumption and industry were lower than expected, and were also far lower than the 34.2% and 14.1% in March. Fixed asset investment was higher than expected, but lower than the 25.6% the previous three months, and is still based real estate investment, manufacturing investment is mediocre. Reuters May 17 quoted Central Bank chief economist Wang Jun analysis said, April industrial, consumer and investment chain growth rate has come down significantly, showing both ends of the supply and demand were sluggish growth, economic recovery is weakening.

5.CCP participates in the management of private schools, and the stock market plummets

The CCP authorities recently announced the revised “Regulations for the Implementation of the Law on the Promotion of Private Education,” which requires members of the CCP to participate in the decision-making and supervision procedures of private schools, or they will be punished. On May 14th, the authorities again emphasized it with a “question and answer” mode, but the share prices of listed education companies in Communist China fell sharply that day. New Oriental fell more than 14%, a record low since its listing; Chuanglian Education Finance fell 20%.

The State Council of the People’s Republic of China announced the revised version of the “Regulations for the Implementation of the Law on the Promotion of Private Education” on April 7 and will be implemented on September 1 2021.

6.Bitcoin drops to 3-month low in wild trading after Musk tweets

Bitcoin fell to a three-month low on Monday in a volatile session that saw investors selling and buying the digital currency after Tesla boss Elon Musk tweeted about the carmaker’s bitcoin holdings. Bitcoin fell to as low as $42,185, its lowest since Feb. 8, and was last down 6.2% at $43,564. In his latest tweet, Musk said “Tesla has not sold any bitcoin”. A day earlier, he suggested Tesla may have done so, and last week, Musk said Tesla would stop taking bitcoin as payment due to environmental concerns about energy use to process transactions.

Musk has boosted crypto markets with his enthusiasm for the asset class, but has lately roiled trade by appearing to cool on bitcoin in favor of its one-time parody, dogecoin. While bitcoin, dogecoin and ether still enjoy strong gains year to date, their latest gyrations are beginning to spook even steeled traders.

By 【Financial Team – Tracy】
News Collection: Wendy

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