Commenting on regional car brands and China’s auto sector, Stanberry Research Editor Brian Tykungko said:
“The only Japanese and Korean car brands that will avoid China’s attack will possibly be Toyota, Honda, Kia/Hyundai, Winfast. Others do not have a real strategy to compete and the same tired and boring products are being offered on premium prices.”
Stopping the competition will reduce the Chinese vehicle manufacturers a strong leg and potentially reduce price pressure.
Global trade and bricks unity
It is important for Beijing to address external demand, price wars, labor markets and domestic consumption.
India, Iran and Russia were among the attendees at a China summit, as there were Beijing dialects to weaken the influence of US administration on global trade terms. Reconstruction of relations with India and establishing a trade treaty with nations affected by American tariffs can develop a comprehensive economy independent of America.
China will benefit greatly from this type of development. Strong trade relations with India, Russia and other countries can address weak external demand, reduce domestic competition, promote production and support labor market.
The latest developments can bring BRICS Greater Ekta, which is a possible bugbier for President Trump. With the resumption of US-China trade negotiations last week, Trump’s response to the China Summit and how the response to tragic nations will be important.
India recently found itself in US administration sites on oil imports from Russia. Under US presidential election, Trump threatened 100% tariff on BRICS nations, warning:
“If you leave the dollar, you are not trading with the United States because we will impose 100 percent tariffs on your goods.”
Seriously, a integrated BRICS block and strong trade relations between China, India, Russia and other countries can reduce the impact of further tariff hike on trade. China has vested interests in becoming a successful economic power plant in BRICS.
Chinese President Xi says for close relations
On Monday, September 1, Chinese President Xi Jinping spoke at the summit. He allegedly said:
“We will always stand in favor of international impartiality and justice, oppose hegmonism and electricity politics. We need to better align development strategies and promote belts and roads. Must take advantage of the strength of markets, improve business, improve green energy, science, technological innovation and AI cooperation.
Natix Asia Pacific’s Chief Economist Alicia Garcia Herero recently commented on China’s view for trade terms, stating:
“Realing in the second half will be very difficult. So it is going to hit Chinese exports indirectly. Therefore, the second half is difficult and the government is preparing.”
Low dependence on demand from the US and increasing external demand from BRICS countries may change the global trade scenario.
Mainland’s stock markets hit the latest 2025 height
On Monday, September 1, the CSI 300 of the mainland China and the Shanghai Composite Index increased by 0.60% and 0.46% respectively, attacking the New Year-year high. In particular, CSI 300 reached the highest level since March 2022, while Shanghai Composite reached a 10 -year high.
Despite the YTD gains of 14.96% and 15.63%, both index remain below the high levels of all time, which suggest the room to reversed further. The demand for fuel of optimism on Beijing’s 5% GDP development target, affected by the encouragement measures of Beijing continues to be fuel.
Both index have performed better than the NASDAQ Composite Index (YTD: 11.11%), but left behind the Hang Seng index (27.7%).
The next round of business development and policy support of Beijing can be important for market pace.
The US-China trade tension, disagreement in the member states of BRICS, and the absence of fresh stimulation can derail the rapid sense.
