15/04/2026

BIZ & FINANCE WEDNESDAY | APR 15, 2026

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China’s export growth slows in March while imports soar o Shipments to the

EU companies rethinking China operations over rare earths curbs BEIJING: Beijing’s stringent export controls on rare earths are driving a fundamental shift in how European firms think about their operations in China, a business lobby warned yesterday. China dominates the global industry for rare earths, which are critical for making a wide range of products from everyday consumer electronics to equipment used in the defence sector. The country’s leaders leveraged that strength in spectacular fashion last year, reaching a deal with Washington in October to pause a blistering trade war after Beijing’s curbs on their exports sent shockwaves across supply chains. But the approval procedures now in place are still causing headaches for many foreign firms seeking to move supplies and products abroad, a report published yesterday said. “In many cases the licensing process remains slow, unpredictable, uncoordinated and lacks trans parency,” the European Union Chamber of Commerce in China said. The new restrictions amount to a “major expansion of the country’s export control toolbox”, the report added. “There is now a recognition that China’s emerging export control regime poses a long-term business risk, given that the ability to export a particular item could be taken away at any point based on political rather than security factors.” Beyond simply adding to administrative burdens, the curbs have been forcing a deeper rethink for many European firms, Chamber president Jens Eskelund said at a media event ahead of the report’s publication. Many companies from the continent were “caught flat-footed” last year when their operations encountered snags as a result of the China-US trade war, added Eskelund. There has now been a “profound mindset change” in which firms “can’t just rely and say ‘my supplier’s got my back’, I don’t need to worry”, he said. Companies and countries are now looking for ways to ensure “that they have a plan B if something should happen”, he added. “I think it’s something that will, at a certain point in time, translate into a real measurable economic impact.” Supply of rare earths is expected to be a key discussion item at the upcoming summit between US President Donald Trump and Chinese counterpart Xi Jinping. The high-stakes meeting in Beijing – originally scheduled to begin on March 31 – has now been pushed to mid-May while Trump handles fallout from the US-Iran war. – AFP

US plunge, hit by blistering tariffs launched by Trump BEIJING: China’s exports grew at a slower pace last month after starting the year with a surge, official data showed yesterday, as the global economy reels from war in the Middle East. The world’s second-largest economy produced a record breaking trade surplus last year at US$1.2 trillion (RM4.7 trillion). Booming overseas shipments appeared set to continue this year after jumping by more than a fifth in January and February combined. However, China’s exports grew just 2.5% on-year in March, according to data published yesterday by the General Administration of Customs (GAC). The slowdown was more pronounced than expected, with a Bloomberg survey of economists forecasting 8.6% growth. Exports to the United States also plunged last month, hit by blistering tariffs launched by President Donald Trump. Shipments to the United States tumbled 26.5% on-year to US$29.4 billion in March, the customs data showed. In a more positive sign, imports soared 27.8%, according to the figures. That was higher than a forecast of 14% growth by Bloomberg. The readings come at an SEOUL: South Korean President Lee Jae Myung said rising tensions around the Strait of Hormuz made it hard to be optimistic about the fallout from the Iran war, warning that high oil prices and supply-chain strains were likely to persist for some time. Lee told a Cabinet meeting yesterday the government should treat prolonged disruption in global energy and raw materials markets as a given and reinforce its emergency response system. “For the time being, difficulties in global energy and raw materials supply chains and high oil prices will continue,” Lee said. “I ask that we pursue the development of alternative supply

A worker loads sulphur at a storage yard on a wharf in Nanjing, in Jiangsu province, China, yesterday. China’s exports grew just 2.5% on-year in March. – AFPPIC

South Korea’s energy ministry said yesterday it would begin rolling out a revised seasonal and time-of use electricity pricing system to shift power demand away from evening peak hours towards midday, when solar generation is higher. The new rates take effect for large industrial users from April 16 while weekend discounts for electric-vehicle charging will begin on April 18. Meanwhile, Middle Eastern oil producers are in contact with South Korea about using the country’s petroleum storage facilities as disruptions at the Strait of Hormuz continue, a South Korean industry ministry official said yesterday, signalling growing interest in offshore crude storage hubs. – Reuters Middle East likely weighed on the demand side,“ he wrote in a note. Meanwhile, China’s surge in import figures last month was the result of higher energy costs, Zhang said. “I think China’s trade surplus will likely shrink this year,” he said, adding that “the high energy price is likely more damaging for China’s competitors, given the scale and the efficiency of China’s manufacturing sector.” – AFP

yesterday. “The impact of international geopolitical conflicts on global industrial and supply chains is still evolving in a complex manner,” Wang said. Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, added that “growth to major export destinations slowed across the board”.

uncertain time for international trade, with energy costs sky rocketing as a result of war between the United States and Iran. Analysts say China’s diversified energy supply insulates it from immediate shocks, though any global economic downturn would weaken demand for its exports.

GAC deputy head Wang Jun acknowledged “many uncertain ties and instabilities in the external environment”, at a news conference It’s hard to be optimistic, says South Korean president “The uncertainty of global macro outlook driven by the conflict in the

affecting supplies and that even if the passage normalises, it could take around 20 days for Middle Eastern cargoes to reach South Korea. The government is prioritising support for the passage of seven South Korea-bound oil tankers stuck in the Gulf area, a document shown during the Cabinet meeting said. Foreign Minister Cho Hyun told the meeting that the ministry had sent officials to the Congo, Algeria and Libya in a bid to secure energy supplies. “I also urge the parties to this war to take courageous steps toward the peace the world so desperately wants, based on the principles of protecting universal human rights and the lessons of history,” Lee said.

chains, medium- to long-term industrial restructuring, and the transition to a post-plastic economy as top-priority national strategic projects.” Lee also urged ministries to move quickly to deploy a supplementary budget passed in response to the war. At the meeting, ministers out lined steps to contain the economic shock from the conflict, including support for crude imports, controls against hoarding of petrochemical feedstocks and medical supplies, and expanded financial assistance for affected companies. Industry Minister Kim Jung-kwan said disruptions to shipping through the Strait of Hormuz were still

US small business sentiment drops to 11-month low WASHINGTON: US small business sentiment dropped to an 11-month low in March as a surge in oil prices because of the war in Iran overshadowed the benefits from low taxes, a survey showed. dropped 3.0 points to 95.8 last month, the lowest level since April 2025, and pushed it below its 52-year average of 98.0. The survey’s uncertainty index jumped 4 points to 92, well above its historical average of 68. the near term as oil prices shot up on Monday to more than US$100 (RM395) a barrel after the US military said it would blockade ships leaving Iran’s ports. Crude prices have jumped more than 35% since the US-Israeli war with Iran started at the end of February. “The 20% Small Business Deduction and other supportive small The National Federation of Independent Business said yesterday its Small Business Optimism Index A rebound in both small business and consumer sentiment is unlikely in

them along to their customers.” Businesses were pessimistic about profit and sales prospects. The share of owners expecting better business conditions dropped 7 points to a seasonally adjusted 11%, the lowest since October 2024 and marking the third consecutive monthly decline. – Reuters

business tax provisions in the Working Families Tax Cut Act have had many positives for small business owners,” said NFIB chief economist Bill Dunkelberg. “However, the dramatic spike in oil prices has spooked consumers and owners alike. Small business owners are having to absorb those higher input costs and pass