31/03/2025

BIZ & FINANCE MONDAY | MAR 31, 2025

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US, China raise stakes in Panama Canal ports row

France slams US ‘interference’ in firms’ diversity programmes PARIS: France’s Trade Ministry condemned “unacceptable”US interference on Saturday after the American embassy in Paris sent several French firms letters warning against using the diversity programmes known as “DEI”, a frequent Donald Trump target. The letters, sent to French companies currently doing or looking to do business with the United States, included an attached questionnaire asking firms to certify that they “do not practice programmes to promote diversity, equity and inclusion”, or DEI. The questionnaire, which was shared with AFP, added that such programmes “infringe on applicable federal anti-discrimination laws” in the United States, where Trump signed an order banning federal DEI programmes the day he returned to office for his second term as president. France, already bristling at Trump’s moves to slap hefty tariffs on imports, hit back through the Trade Ministry. “US interference in French companies’ inclusion policies is unacceptable, just like its unjustified tariff threats,” the ministry said. “France and Europe will defend their companies, their consumers, but also their values.” Designed to provide opportunities for blacks, women and other historically excluded groups, DEI programmes have drawn the wrath of Trump and his followers, who say they are discriminatory and incompatible with meritocracy. The letter, first published on Friday by Le Figaro newspaper, told companies that Trump’s Jan 20 executive order against DEI programmes “also applies to all contractors and suppliers of the US government, regardless of nationality or country of operations”. It gives them five days to fill out, sign and return the questionnaire. Economy Minister Eric Lombard’s office said the letter “reflects the values of the new US government”. “They are not ours. The minister will remind his US counterparts of that.” It was unclear how many companies got the letter. – AFP Trump says ‘could not care less’ if auto prices rise WASHINGTON: US President Donald Trump declared on Saturday that he“couldn’t care less”if automakers increase car prices for Americans in the wake of his imposition of import tariffs. There have been reports that Trump threatened auto executives with reprisals if prices jump, but he told NBC News that increasing prices would simply help US-based manufacturers. “I couldn’t care less. I hope they raise their prices, because if they do, people are gonna buy American-made cars. We have plenty,” he told NBC host Kristen Welker. Last Thursday, Trump imposed a blanket 25% import tariff on cars and light trucks made outside the US, due to take effect on April 3. Tariffs will be delayed for car parts from countries covered by US trade pact with Mexico and Canada as officials try to disentangle the mixed supply chain. But otherwise Trump intends for the import levy to be permanent, in order to boost US production and, in his view, save the American auto industry. Despite his boosterism, share prices of the biggest US automakers have suffered and experts have warned that price rises will hit Americans. Asked by NBC News what his message would be to worried auto executives, Trump said: “The message is ‘congratulations’. “If you make your car in the United States, you’re going to make a lot of money.”– AFP

“That doesn’t feel good in Beijing.” Some of the ports being sold are in nations that participate in Beijing’s Belt and Road Initiative (BRI) – a global development framework championed by President Xi Jinping. Ports are crucial to that network and China “has been notably successful in this area”, said Henry Gao, a trade law expert at the Singapore Management University. Last month, Panama formally exited the BRI following a visit from US Secretary of State Marco Rubio. “There is indeed a growing trend of ‘weaponising’ ports and trade infrastructure as tools of geopolitical leverage,” Gao said. On March 4, CK Hutchison sent shockwaves through China’s shipping industry by announcing a deal of “unprecedented scale”, according to Xie Wenqing, a port development researcher at the Shanghai International Shipping Institute. Chinese shipping firms questioned whether they could ensure neutral passage once the ports changed hands, he told AFP. “There are concerns about additional costs for Chinese ships or discriminatory treatment in terms of queuing orders,” he added, highlighting the long-arm jurisdiction of US authorities. The deal – coupled with recent US tariff hikes – could undermine China’s manufacturing dominance, argued Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China. “Increased inspections and additional docking costs would erode China’s competitive

edge and disrupt global supply chains.” The US has used various justifications to target key infrastructure projects under the Belt and Road Initiative “to strip away these assets and weaken China’s position as the world’s factory”, Wang added. John Bradford, executive director of the Yokosuka Council on Asia-Pacific Studies, said the deal would not serve China’s interests but said some concerns were “overblown”. Port operators such as CK Hutchison are commercial entities constrained by law and cannot decide matters of national sovereignty, for example whether a ship could visit a port or not. “If (operators) were to blatantly favour one company over another, that would generally speaking ... be illegal,” Bradford said. “Most countries have laws which say you have to treat different customers similarly, so the nightmare scenarios are not particularly realistic.” Beijing’s next steps in scrutinising CK Hutchison may also have far-reaching implications on Hong Kong and its role as China’s business gateway to the world, analysts said. “This whole Panama ports issue has refocused attention on the question (of) whether Hong Kong is a good place to put assets or to do business,” said Tong. “Certainly the foreign business community operating in Hong Kong is watching this issue very closely.” CK Hutchison is registered in the Cayman Islands and the assets being sold are all outside China. – AFP

HONG KONG: China’s fury at the sale of Panama Canal ports to a US-led consortium reflects how container hubs have become prized currency as Beijing and Washington vie for global influence, analysts say. Hong Kong conglomerate CK Hutchison this month sold 43 ports in 23 countries – including operations in the vital Central American canal – to a group led by giant asset manager BlackRock for US$19 billion (RM84 billion) in cash. After two weeks of rhetoric, Beijing hardened its response on Friday and confirmed that antitrust regulators will review the deal, likely preventing the parties from signing an agreement on April 2 as planned. Speaking before the review was announced, experts said the deal allowed US President Donald Trump to claim credit for “taking back” the canal as part of his “America First” agenda. “The US (created) a political issue at China’s expense and then has been able to declare victory,” said Kurt Tong, managing partner at The Asia Group and a former top American diplomat to Hong Kong. o Container hubs have become prized currency in battle for global influence, say analysts

Luong Cuong and Lula inspecting a guard of honour at the Presidential Palace in Hanoi. – AFPPIC

Brazil’s president touts possible deals with Vietnam HANOI: Brazil’s President Luiz Inacio Lula da Silva said on Saturday that Vietnam may buy as many as 50 planes from Embraer, the Brazilian planemaker, and that another Brazilian company may invest US$100 million (RM443 million) in a meat-processing plant in the Asian country, as he prepared to conclude his state visit to Hanoi, where he met President Luong Cuong. building such a plant in Vietnam, which would be its first in Asia. The company did not immediately comment on Lula’s remarks and it is unclear if the US$100 million investment refers to its plans. A Brazilian official also told Reuters last week that Embraer was in talks about the possible sale of 10 E190 narrow-body jets to Vietnam Airlines. Last Friday, Lula said he was aware that flagship carrier Vietnam Airlines was “positively Earlier this month, sources told Reuters that Brazilian meatpacker JBS was considering

assessing Embraer’s offer” for regional jets. Lula also said he was willing to negotiate with US President Donald Trump about the tariffs he vowed to impose on Brazil starting on Wednesday. Trump had already announced levies on Brazilian steel early this month. “Before engaging in a fight about reciprocity or a fight at the World Trade Organisation, we want to use all the words in our dictionary to do free trade with the US,” Lula said in Hanoi. – Reuters