Після початку повномасштабного вторгнення Росії в Україну Чехія, Угорщина та Словаччина як країни без виходу до моря отримали виключення з європейського ембарго на російську нафту
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Лауреатами Нобелівської премії з економіки стали вчені Дарон Асемоглу, Саймон Джонсон и Джеймс Робінсон
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OCEAN CITY, N.J. — For generations of vacationers heading to Ocean City, the towering “Giant Wheel” was the first thing they saw from miles away.

The sight of the 140-foot-tall (42-meter) ride let them know they were getting close to the Jersey Shore town that calls itself “America’s Greatest Family Resort,” with its promise of kid-friendly beaches, seagulls and sea shells, and a bustling boardwalk full of pizza, ice cream and cotton candy.

And in the heart of it was Gillian’s Wonderland Pier, an amusement park that was the latest in nearly a century-long line of family-friendly amusement attractions operated by the family of Ocean City’s mayor.

But the rides were to fall silent and still Sunday night, as the park run by Ocean City’s mayor and nurtured by generations of his ancestors, closed down, the victim of financial woes made worse by the lingering aftereffects of the COVID-19 pandemic and Superstorm Sandy.

Gillian and his family have operated amusement rides and attractions on the Ocean City Boardwalk for 94 years. The latest iteration of the park, Wonderland, opened in 1965.

“I tried my best to sustain Wonderland for as long as possible, through increasingly difficult challenges each year,” Mayor Jay Gillian wrote in August when he announced the park would close. “It’s been my life, my legacy and my family. But it’s no longer a viable business.”

Gillian did not respond to numerous requests for comment over the past week.

Sheryl Gross was at the park for its final day with her two children and five grandchildren, enjoying it one last time.

“I’ve been coming here forever,” she said. “My daughter is 43 and I’ve been coming here since she was 2 years old in a stroller. Now I’m here with my grandchildren.”

She remembers decades of bringing her family from Gloucester Township in the southern New Jersey suburbs of Philadelphia to create happy family memories at Wonderland.

“Just the excitement on their faces when they get on the rides,” she said. “It really made it feel family-friendly. A lot of that is going to be lost now.”

There were long lines Sunday for the Giant Wheel, the log flume and other popular rides as people used the last of ride tickets many had bought earlier in the year, thinking Wonderland would go on forever.

A local non-profit group, Friends of OCNJ History and Culture, is raising money to try and save the amusement park, possibly under a new owner who might be more amenable to buying it with some financial assistance. Bill Merritt, one of the non-profit’s leaders, said the group has raised over $1 million to help meet what could be a $20-million price tag for the property.

“Ocean City will be fundamentally different without this attraction,” he said. “This town relies on being family-friendly. The park has rides targeted at kids; it’s called ‘Wonderland’ for a reason.”

The property’s current owner, Icona Resorts, previously proposed a $150-million, 325-room luxury hotel elsewhere on Ocean City’s boardwalk, but the city rejected those plans.

The company’s CEO, Eustace Mita, said earlier this year he would take at least until the end of the year to propose a use for the amusement park property.

He bought it in 2021 after Gillian’s family was in danger of defaulting on bank loans for the property.

At a community meeting last month, Gillian said Wonderland could not bounce back from Superstorm Sandy in 2012, the pandemic in 2020 and an increase in New Jersey’s minimum wage that doubled his payroll costs, leaving him $4 million in debt.

Mita put up funds to stave off a sheriff’s sale of the property, and gave the mayor three years to turn the business around. That deadline expired this year.

Mita did not respond to requests for comment.

Merritt said he and others can’t imagine Ocean City without Wonderland.

“You look at it with your heart, and you say ‘You’re losing all the cherished memories and all the history; how can you let that go?’” he said. “And then you look at it with your head and you say, ‘They are the reason this town is profitable; how can you let that go?’”
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Geneva — The head of the U.N. refugee agency warned on Monday that displacement crises in Lebanon and Sudan could worsen, but said tighter border measures were not the solution, calling them ineffective and sometimes unlawful.

Addressing more than 100 diplomats and ministers in Geneva at UNHCR’s annual meeting, Filippo Grandi said an unprecedented 123 million people are now displaced around the world by conflicts, persecution, poverty and climate change.

“You might then ask: what can be done? For a start, do not focus only on your borders,” he said, urging leaders instead to look at the reasons people are fleeing their homes.

“We must seek to address the root causes of displacement, and work toward solutions,” he said. “I beg you all that we continue to work — together and with humility — to seize every opportunity to find solutions for refugees.”

Without naming countries, Grandi said initiatives to outsource, externalize or even suspend asylum schemes were in breach of international law, and he offered countries help in finding fair, fast and lawful asylum schemes.

Western governments are under growing domestic pressure to get tougher on asylum seekers and Grandi has previously criticized a plan by the former British government to transfer them to Rwanda.

In the same speech he warned that in Lebanon, where more than one million people have fled their homes due to a growing conflict between Israel and Hezbollah, the situation could worsen further.

“Surely, if airstrikes continue, many more will be displaced and some will also decide to move on to other countries.”

He called for a drastic increase in support for refugees in Sudan’s civil war, saying lack of resources was already driving them across the Mediterranean Sea and even across the Channel to Britain.

“In this lethal equation, something has got to give. Otherwise, nobody should be surprised if displacement keeps growing, in numbers but also in geographic spread,” he said.

The UNHCR response to the crisis that aims to help a portion of the more than 11 million people displaced inside Sudan or in neighboring countries is less than 1/3 funded, Grandi said.

The number of displaced people around the world has more than doubled in the past decade.

Grandi, set to serve as high commissioner until Dec. 2025, said the agency’s funding for this year had recently improved due to U.S. support but remained “well below the needs.”
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Paris — Chinese state-owned carmaker GAC is exploring the manufacture of EVs in Europe to avoid EU tariffs, the general manager of its international business told Reuters on Sunday, joining a growing list of Chinese companies planning local production. 

The company is among China’s largest automakers and is targeting 500,000 overseas sales by 2030. It does not yet sell EVs in Europe but will launch an electric SUV tailored to the European market at the Paris Auto Show, which kicks off Monday. 

GAC still viewed Europe as an important market that was “relatively open” despite moves by the European Commission to impose tariffs on EVs made in China, Wei Heigang said, speaking in Paris ahead of the show. 

“The tariffs issue definitely has an impact on us. However, all this can be overcome in the long term … I am positive there is going to be a way to get it all resolved,” he said. 

“Local production would be one of the ways to resolve this,” he added. “We are very actively exploring this possibility.” 

Discussions were at a very early stage and the company was still considering whether to build a new plant or share — or take over — an existing one, according to Wei. 

The compact SUV on display in Paris, a 520-kilometer (323-mile) range vehicle called “Aion V,” should launch in some European markets in mid-2025, priced at less than 40,000 euros ($43,748), though the final price has not yet been set, GAC said. 

After that launch, the next GAC vehicle due for sale in Europe will be a small electric hatchback, to be released in late 2025. 
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Mount Juliet, United States — Amazon is bolstering its e-commerce empire while continuing a march deeper into people’s lives, from robots to healthcare and entertainment.  

Innovations unveiled in recent days by the Seattle-based tech titan included a delivery van computer system to shave time off deliveries by its speed-obsessed logistics network.   

Amazon Stores boss Doug Herrington said that the technology enables vans to recognize stops and signal which packages to drop off.  

“When we speed up deliveries, customers shop more,” Herrington said.  

“For 2024, we’re going to have the fastest Prime delivery speeds around the world,” he added, referring to Amazon’s subscription service.  

On top of that, according to Herrington, Amazon last year managed to cut 45 cents off the cost per unit shipped, a huge savings when considering the massive volume of sales.  

Prime is the ‘glue’  

Amazon last year recorded profit of more than $30 billion on revenue of $575 billion, powered by its online retail operation and its AWS cloud computing division.  

“They have this whole flywheel model with Amazon Prime membership in the middle,” said eMarketer analyst Suzy Davidkhanian.  

“That’s the glue that keeps everything together.”  

Businesses include retail, advertising, cloud computing and streamed movies and music.  

But that very model has the 30-year-old company facing a US government lawsuit, accused of expanding an illegal monopoly and otherwise harming competition.   

Amazon makes money from data gathered about consumers, either by targeting ads or through insights into what products they might like, Davidkhanian said.  

That was why Amazon paid for expensive rights to stream NFL American football games on Prime Video in a move that promises to help it pinpoint fans of the sport.  

Amazon’s digital assistant Alexa can order items on command and has been even built into appliances such as washing machines to let them automatically buy supplies like laundry soap as needed.  

A ‘pocket pharmacy’  

Amazon showed off enhancements to its virtual health care service called One Medical.  

For $9 a month Prime members are promised anytime access to video consultations with health care professionals, along with record keeping and drug prescriptions.  

An Amazon Pharmacy takes advantage of the company’s delivery network to get prescriptions to patients quickly, striving for speeds of less than 24 hours for 45 percent of customers by the end of next year.  

“We’re building a pharmacy in your pocket that offers rapid delivery right to your door,” Amazon Pharmacy chief Hannah McClellan said, referring to the option of using a smartphone app.  

The healthcare market promises to be lucrative for Amazon, which is “trying to be the platform that has everything for everyone,” said analyst Davidkhanian.  

Real world wrinkles  

Amazon has suffered setbacks when it comes to brick-and-mortar stores but it continues to strive for a winning strategy.  

The company next year will open its first “automated micro warehouse” in Pennsylvania, next to a Whole Foods Market organic grocery shop, the chain it bought in 2017.  

People will be able to pick up certain items selected online, with orders filled by robots, after shopping next door for fresh produce and groceries.  

Meanwhile, Amazon is ramping up use of artificial intelligence at its online store with tools helping sellers describe and illustrate products.  

Product labels will change according to the user, displaying terms likely to catch their attention such as “strawberry flavor” for some and “gluten-free” for others.   

“The things that Amazon is doing with AI are to make sure that you go from researching something to making the purchase as quickly as possible,” Davidkhanian said.  

At the logistics center near Nashville, robotic arms deftly placed packages in carts that autonomously made their way to trucks.  

Logistics center automation improves safety and frees up workers for more interesting tasks, according to Amazon robotics manager Julie Mitchell.  

However, critics cite delivery speed pressure and other factors as making Amazon warehouses more dangerous than the industry average. 
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BUENOS AIRES — Argentina’s triple-digit inflation, among the world’s highest, is starting to slow down but this offers little relief for workers whose salaries have stayed the same while costs of basic goods skyrocketed and the government slashed state subsidies.

“We’re losing track of what’s expensive and what’s cheap,” said university professor Daniel Vazquez while shopping in Buenos Aires. “Prices keep going up and the only thing that isn’t going up is salaries.”

“The gap is very, very big,” he said.

While annualized inflation in September remained well into the triple digits at 209%, month-on-month price hikes slowed to their lowest level since late 2021 at 3.5%, data from the national statistics agency showed on Thursday.

The data landed in line with the forecasts of analysts, who predict that inflation will end 2024 at 124%.

Libertarian President Javier Milei has cut subsidies to sectors such as energy and transportation, while vowing to trim what he calls bloat in the public sector, shuttering some offices and trimming jobs.

“You’ve never seen inflation being fought like this before. It takes a little longer but it’s genuine,” Milei wrote on X after the inflation data was published Thursday.

The tough austerity drive has prolonged a recession and caused poverty rates to surge to around 53%.

Computer programmer Ivan Cortesi, 30, said that while food prices remained similar to last month, utility costs rose significantly.

“This past month there has been a significant increase in all utilities,” he said.

According to the statistics agency, rents as well as water, power and gas prices led monthly inflation, up over 7%, followed by clothing and shoes which rose 6% and education costs that increased over 4%.

Food prices increased just 2% from last month but more than tripled their level from a year ago, while housing and utility costs nearly quadrupled. Cigarettes, alcohol, health care, transport and communications also tracked annual inflation well above 200%.

Milei devalued the local currency when he took office in December, and the sharp spending cuts have particularly hit informal workers, civil servants, pensioners, doctors and teachers.

On Wednesday, Argentina’s Congress failed to overturn Milei’s controversial veto of a law that would have shored up university spending in line with inflation, following mass protests by students and university workers against the measure.

Milei has vowed to veto any law that threatens the fiscal balance.
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beijing — China said Saturday it would issue special bonds to help its sputtering economy, signaling a spending spree to bolster banks, shore up the property market and ease local government debt as part of one of its biggest support packages in years.

The plan is part of a series of actions undertaken by Beijing to draw a line under a years-long property sector crisis and chronically low consumption that has plagued the world’s second-biggest economy.

Beijing’s planned special bonds are aimed at boosting the capital available to banks — part of a push to get them lending in the hopes of firing up sluggish consumer spending.

China is also preparing to allow local governments to borrow more to fund the acquisition of unused land for development, aimed at pulling the property market out of a prolonged slump.

No figures were provided on the planned special bonds announced at a highly anticipated news conference by Finance Minister Lan Fo’an and other officials, following a series of steps launched in recent weeks that have included interest rate cuts and liquidity for banks.

But Lan said China still has room “to issue debts and increase the deficit” to fund the new measures.

Officials have been battling to reverse China’s slowdown and achieve a growth target of five percent this year — enviable for many Western countries but a far cry from the double-digit expansion that for years boosted the Asian giant.

On Saturday, Lan said Beijing was “accelerating the use of additional treasury bonds, and ultra-long-term special treasury bonds are also being issued for use.”

“In the next three months, a total of 2.3 trillion yuan of special bond funds can be arranged for use in various places,” he added.

On top of that, Beijing also plans to “issue special government bonds to support large state-owned commercial banks,” Lan said, although he did not say how much.

Chinese authorities have been urging commercial banks to lend more and lower mortgage rates — measures that would put more cash into the pockets of consumers.

Beijing’s bonds would therefore offer banks help to shore up their capital, giving them greater leeway to lend more.

Bonds for buildings

And local governments will be issued special bonds enabling them to acquire unused and idle land for development, Vice Finance Minister Liao Min said, in action that could prop up the housing market.

The move would “help ease liquidity and debt pressures on local governments and real estate companies,” he explained.

Beijing will also encourage the acquisition of existing commercial properties to be used as affordable housing.

However, analysts expressed frustration that Beijing had refrained from putting a number on further fiscal stimulus.

“The key messages are that … the central government has the capacity to issue more bonds and raise fiscal deficit, and… the central government plans to issue more bonds to help local governments to pay their debt,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said.

Beijing was likely “still working on the minute details of the fiscal stimulus,” Heron Lim at Moody’s Analytics told AFP.

“In the meantime, investors might be taking a step back until they are absolutely certain of the direction fiscal policy is taking.”

‘Lack of forward guidance’

China’s economic uncertainty is also fueling a vicious cycle that has kept consumption stubbornly low.

Julian Evans-Pritchard, head of China economics at Capital Economics, said that “notably absent was any mention of large-scale handouts to consumers” on Saturday.

“The lack of forward guidance on the scale of next year’s budget deficit means it is still difficult to judge how large and long-lasting the fiscal boost will be,” he pointed out.

Chinese policymakers have in the last weeks unveiled a string of stimulus measures including a suite of rate cuts and a loosening of rules on buying homes, but economists said that more action is needed to pull the economy out of its slump for good.

Earlier Saturday, China’s top banks said they would cut lower interest rates on existing mortgages from October 25, state media said, following a government call for the action.

“Except for second mortgages in Beijing, Shanghai, Shenzhen and some other regions, the interest rates on other eligible mortgages will be adjusted” to no less than 30 basis points below the prime lending rate, the central bank’s benchmark rate for mortgages, state broadcaster CCTV said.

CCTV reported that major banks, including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank had announced that they would make the adjustments “in batches.”

The People’s Bank of China last month requested that commercial banks lower such rates by October 31.

Beijing also last month slashed interest on one-year loans to financial institutions, cut the amount of cash lenders must keep on hand and pushed to lower rates on existing mortgages.

And the central bank this week boosted support for markets by opening up tens of billions of dollars in liquidity for firms to buy stocks. 
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Днями Фонд держмайна повідомив, що на аукціон із приватизації ОГХК подав один учасник – компанія «Цемін Україна»
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MELBOURNE, Australia — China will resume importing Australian live lobsters by the end of the year, removing the final major obstacle to bilateral trade that once cost Australian exporters more than 20 billion Australian dollars ($13 billion) a year, Australia’s prime minister said Thursday. 

Prime Minister Anthony Albanese made the announcement after meeting Premier Li Qiang on the sidelines of a Southeast Asian summit in Vientiane, Laos. 

The ban on lobsters was the last of a series of official and unofficial trade barriers that Beijing has agreed to lift since Albanese’s center-left Labor Party government was elected in 2022. 

“I’m pleased to announce that Premier Li and I have agreed on a timetable to resume full lobster trade by the end of this year,” Albanese told reporters. 

“This of course will be in time for Chinese New Year, and this will be welcomed by the people engaged in the live lobster industry,” he added. 

Albanese has given assurances that relations with China have been improved without compromising Australian interests. Beijing is unhappy with restrictions Australia has placed on some Chinese investments because of security concerns. 

“What’s important is that friends are able to have direct discussions. It doesn’t imply agreement, it doesn’t imply compliance, and I’ll always represent Australia’s national interest. That’s what I did today. It was a very constructive meeting,” Albanese said. 

“I’m encouraged by the progress that we have made between Australia and China’s relationship in producing stabilization to the benefit of both of our nations and with the objective of advancing peace and security in the region,” Albanese added. 

China’s embassy in Australia did not immediately respond to a request for comment on Thursday. 

Australian lobster exports to China had been worth $700 million Australian dollars ($470 million) in 2019. 

Beijing ended trade with Australia in 2020 on a range of commodities including lobster, coal, wine, barley, beef and wood as diplomatic relations plumbed new depths. 

Conservative Prime Minister Scott Morrison had angered Beijing that year by demanding an independent investigation into the origins of and responses to the COVID-19 pandemic. 

Tom Ryan, a manager at lobster exporter Five Star Seafoods at Port MacDonnell in South Australia state, said he was disappointed that his trade would be the last to resume with China. 

“It’s been a long time coming,” Ryan told Australian Broadcasting Corp. of Albanese’s announcement. 

“Between myself and other people in Port MacDonnell, it’s an absolute relief,” he added. 

The industry had found new markets for lobster products but at lower profit margins, Ryan said. 

Li said during a state visit to Australia in June that he had agreed with Albanese to “properly manage” their nations’ differences. 

Beijing had severed minister-to-minister contacts during the conservatives’ nine years in power.
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Також парламентарі ухвалили поправку до закону, яка залишає військовий збір для військовослужбовців на рівні 1,5%
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TAIPEI, TAIWAN — As Laos hosts this year’s summit of the Association of Southeast Asian Nations, Beijing is calling for additions to its free-trade agreement with the regional forum that focus on smart cities, 5G, artificial intelligence and e-commerce.

Ahead of the ASEAN summit, which began Sunday and ends Friday, Chinese state media have stepped up efforts to promote the benefits of what they call an upgrade to the China-ASEAN Free Trade Area, or CAFTA, agreement.

Analysts point out that the two sides have not reached agreement on what’s being called “CAFTA 3.0,” and that it remains to be seen whether including China’s electric vehicles and e-commerce would benefit Southeast Asian industries that are struggling to compete with their Chinese counterparts.

“The establishment of a free-trade demonstration zone is actually nothing more than the hope that things can be sold into China,” Ming-Fang Tsai, a professor in the Department of Industrial Economics at Taiwan’s Tamkang University, told VOA.

However, he said the Chinese market is facing a lack of domestic demand and overproduction, leading to price competition.

“So, is the FTA 3.0 really an upgrade? Actually, it is a big question mark,” he said by email.

Nevertheless, some specific areas in the 3.0 agreement still attract the attention of experts, including its focus on the EV industry.

Although ASEAN is also actively developing an EV industry, He Jiangbing, a China-based economist and finance commentator, told VOA if China’s major EV manufacturers pour into Southeast Asia through changes in the agreement, it would likely have a huge impact on the local automobile industries.

“China’s mainland started relatively early in new-energy vehicles and has developed rapidly for 10 years. But the automotive industry in ASEAN is relatively weak. If China’s new-energy vehicles are sold in ASEAN, it will be difficult for Southeast Asian [traditional] car companies to resist,” He said.

Southeast Asia’s own automobile industry will be greatly affected or cease to exist, He said.

But Lu Xi, a senior lecturer at the Lee Kuan Yew School of Public Policy at the National University of Singapore, told VOA that most of China’s EVs are not getting into Southeast Asia through exports but through production-line transfer, similar to joint ventures, so a price war should not cause a negative impact.

“With the transfer of [China’s EV] manufacturing industry chain, the economic structure of Southeast Asia will undergo a huge transformation,” Lu said by email. “Depending on the current political and economic situation between China and the US, Southeast Asia itself also has a very broad local market and a very good young population structure, so on the whole, the Southeast Asian market should be one of the important engines of economic growth in the whole region in the future.”

Tsai noted that Chinese manufacturers will set up factories in Southeast Asia to avoid the “Made in China” label and restrictions on Chinese products.

“U.S. controls on technology may affect the components of EVs in the future,” he said, “which brings great pressure to Chinese manufacturers.”

In addition to EVs, the 3.0 agreement also focuses on smart cities, 5G, artificial intelligence and e-commerce.

Analysts say China’s e-commerce is already having a negative impact on the region as orders of cheaper Chinese imports and knockoffs are flooding Southeast Asia. Half of the ceramic factories in Thailand’s northern Lampang province have closed, and Indonesian textile workers are facing mass layoffs, the South China Morning Post and the Bangkok Post reported.

“In the face of the massive entry of the [Chinese] e-commerce, frankly speaking, these Southeast Asian countries are relatively uncompetitive,” said Tsai. “Because first, [they] will not be able to compete with China in marketing and sales. Second, [China’s] own products are cheaper.

“If my entire e-commerce system is better than yours,” Tsai said, “and my products are not more expensive than yours, then how can you compete with me?”

Nonetheless, in a September speech for the Regional Comprehensive Economic Partnership, or RCEP, in Nanning, China, ASEAN Secretary-General Kao Kim Hourn called on businesses to take full advantage of the partnership as they move toward the changes.

He touted the RCEP, the world’s largest trade bloc, covering nearly 30% of global gross domestic product at $29 trillion and 2.3 billion people across the Asia Pacific region.

“ASEAN’s multidirectional economic relations have been a major driver behind the use of RCEP,” said Hourn, according to a written statement. “China, for example, has remained ASEAN’s largest trading partner for the past 15 years and has also climbed from the 5th largest source of FDI to ASEAN in 2022 to the 3rd largest in 2023. With both RCEP and ACFTA 3.0 in place, I am confident that trade and investment between ASEAN, China, and the rest of the RCEP partners will continue to flourish for the benefit of the people in this wider region.”

ASEAN calls the free-trade agreement ACFTA; Beijing refers to it as CAFTA.

The agreement was established by China and ASEAN in 2009, and the ASEAN-China Summit announced the launch of negotiations for the changes in November 2022.

VOA’s Adrianna Zhang contributed to this report.
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Українські слідчі викрили цю схему під час розслідування кримінальної справи проти компанії «Оскар Оптима»
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«У січні-вересні 2024 року український експорт склав майже 100 млн тонн. Це на 36% більше, ніж минулого року»
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Beijing/Paris — China imposed temporary anti-dumping measures on imports of brandy from the EU on Tuesday, hitting French brands including Hennessy and Remy Martin, days after the 27-state bloc voted for tariffs on Chinese-made electric vehicles, or EVs.

China’s commerce ministry said preliminary findings of an investigation had determined that dumping of brandy from the European Union threatens “substantial damage” to its own sector.

France’s trade ministry said the temporary Chinese measures were “incomprehensible” and violated free trade, and that it would work with the European Commission to challenge the move at the World Trade Organization.

In a sign of the rising trade tensions, China’s ministry added in another statement on Tuesday that an ongoing anti-dumping and anti-subsidy investigation into EU pork products would make “objective and fair” decisions when it concludes.

It also said that it was considering a hike in tariffs on imports of large-engine vehicles, which would hit German producers hardest. German exports of vehicles with engines of 2.5 liters or larger to China reached $1.2 billion last year.

France was seen as the target of Beijing’s brandy probe due to its support of tariffs on China-made EVs. French brandy shipments to China reached $1.7 billion last year and accounted for 99% of the country’s imports of the spirit.

As of Oct. 11, importers of brandy originating in the EU will have to put down security deposits mostly ranging from 34.8% to 39.0% of the import value, the ministry said.

“This announcement clearly shows that China is determined to tax us in response to European decisions on Chinese electric vehicles,” French cognac producers group BNIC said in an email.

French President Emmanuel Macron said last week that China’s brandy probe was “pure retaliation,” while EV tariffs were needed to preserve a level playing field.

Shares tumble

LVMH-owned Hennessy and Remy Martin were among the brands hardest hit by the measures, with importers having to pay security deposits of 39.0% and 38.1%, respectively.

The deposits would make it more costly upfront to import brandy from the EU. However they could be returned if a deal is eventually reached before definitive tariffs are imposed.

Both the investigation and negotiations remain ongoing, said an executive at a leading cognac company, who declined to be identified due to the sensitivity of the matter.

Chinese investigators visited producers in France last month and were due to make further site visits, the executive said, while Chinese and EU officials held negotiations on Monday.

The outcome was unclear, however, and doubts around the EU’s willingness to make a deal were emerging, they added.

Shares in Pernod Ricard were down 4.2% at 0839 GMT, while Remy Cointreau’s dropped 8.7% and shares in LVMH fell 4.9%.

Companies that cooperated with China’s investigation were hit with security deposit rates of 34.8%, with that imposed on Martell the lowest at 30.6%.

Pernod Ricard, Remy Cointreau and LVMH did not immediately respond to requests for comment.

The measures could mean a 20% price rise for consumers in China, said Jefferies analysts, reducing sales volumes by 20%.

Remy, with the greatest exposure to the Chinese market, could see its sales decline by 6%, with Pernod group sales seeing a 1.6% impact, they said.

China is the second largest export market for cognac after the United States but is the industry’s most profitable territory. Difficult economic conditions in both markets have already prompted a sharp decline in cognac sales.

James Sym, fund manager at Remy investor River Global, said despite this, there was no sign that demand for cognac had fundamentally changed, pointing to an uptick in cognac sales in Japan driven by Chinese tourists when the yen was weak.

“That’s obviously a sign that cognac is not out of fashion,” he said, adding volumes – and the companies’ share prices – should recover long-term, although the tariffs would likely hit volumes and margins while in place.

Talks continue

Luxury goods shares fell by as much as 7% on Tuesday, with one trader attributing this to fears that the sector, which is heavily reliant on China, could be next to see trade measures.

The brandy measures follow a vote by the EU to adopt tariffs on China-made EVs by the end of October.

Before the vote in late August, China had suspended its planned anti-dumping measures on EU brandy, in an apparent goodwill gesture, despite determining it had been sold in China at below-market prices.

At the time, the commerce ministry said its probe would end before Jan. 5, 2025, but that it could be extended.

China’s commerce ministry previously said it had found that European distillers had been selling brandy in its 1.4 billion-strong consumer market at a dumping margin in the range of 30.6% to 39% and that its domestic industry had been damaged.

In the EU’s decision to impose tariffs on China-made EVs, the bloc set tariff rates on top of the 10% car import duty ranging from 7.8% for Tesla to 35.3% for SAIC and other producers deemed not to have cooperated with its investigation.

The European Commission has said it is willing to continue negotiating an alternative, even after tariffs are imposed.
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LISBON — Chinese lithium producers are flooding the global market with the critical metal and causing a “predatory” price drop as they seek to eliminate competing projects, a senior U.S. official said on a visit to Portugal that has ample lithium reserves.

Jose Fernandez, undersecretary for economic growth, energy and the environment at the U.S. Department of State, told a briefing late on Monday that China was producing much more lithium “than the world needs today, by far.”

“That is an intentional response by the People’s Republic of China to what we are trying to do” with the Inflation Reduction Act – the largest climate and energy investment package in U.S. history valued at over $400 billion, Fernandez said.

“They engage in predatory pricing… [they] lower the price until competition disappears,’’ Fernandez said. ‘’That is what is happening.”

China accounts for about two-thirds of the world’s lithium chemical output, which is mainly used in battery technologies including for electric cars. Prices of lithium have fallen more than 80% in the past year largely due to overproduction from China and a drop in demand for electric vehicles.

However, the price collapse is also affecting China as it has forced Chinese companies like battery giant CATL to suspend production at certain mines.

Job cuts

Europe aims to reduce its dependence on imports from China and other countries of lithium and other materials essential to the green transition.

Fernandez said the low price “constrains our ability to diversify our supply chains on a broad, global scale” and also hurts countries such as Portugal that need investment to develop these industries.

Falling prices have forced many global lithium producers to scale back production and cut jobs.

Portugal, with some 60,000 tons of known reserves, is already Europe’s biggest producer of lithium, traditionally mined for ceramics.

Along with neighboring Spain, the country wants to take advantage of local lithium deposits, aiming to cover the entire value chain from mining and refining to cell and battery manufacturing to battery recycling.

Several mining companies in Portugal have been looking for financing, customers and suppliers to crank up projects.

“We want to help them, and we think we can… lithium mining companies, everywhere, have to survive this difficult phase that was created by predatory pricing,” Fernandez said.

China’s Premier Li Qiang in June used his address at a World Economic Forum meeting in Dalian to hit back at accusations from the United States and E.U. that Chinese firms benefit from unfair subsidies and are poised to flood their markets with cheap green technologies.

Trade tensions intensified last Friday when the European Union said it would press ahead with hefty tariffs on China-made electric vehicles to counter what it sees as unfair Chinese subsidies, after a year-long anti-subsidy investigation. China on Tuesday imposed temporary anti-dumping measures on imports of brandy from the E.U.
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The European Union is braced for retaliation from China after the bloc voted Friday to impose tariffs on the import of Chinese electric vehicles, which Brussels says receive unfair state subsidies. As Henry Ridgwell reports, there’s speculation that Beijing could target individual European countries that voted for the measures.
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«Така динаміка зумовлена валютними інтервенціями НБУ для покриття структурного дефіциту валюти на ринку та згладжування курсових коливань»
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