The US International Trade Commission said on Thursday it would investigate the economic impact of revoking China’s permanent normal trade status over a six-year period, reports Reuters. The move would likely increase tariffs on Chinese imports.

The USITC, which studies trade and competitiveness matters and rules on anti-dumping and anti-subsidy trade cases, said its report would focus on US trade, production and prices in the industries that could be directly and most affected by increasing tariffs on Chinese goods to the higher non-MFN rates.

When he took office in January 2025, President Trump ordered his trade and commerce chiefs to assess legislative proposals to revoke Permanent Normal Trade Relations (PNTR) with China. PNTR was first granted in 2000, allowing China to join the World Trade Organization, a move that catapulted the country into becoming the world’s biggest manufacturer.

Panamanian officials have searched the offices tied to the Panama Ports Company, the local unit of Hong Kong conglomerate CK Hutchison, reports Reuters, citing local news sources.

CK Hutchison and Panamanian authorities did not immediately respond to a request for comment. A judicial official interviewed on a local television station confirmed a search had taken place, but did not name the business or what materials had been seized.

Panama’s top court recently declared unconstitutional CK Hutchison’s contracts to operate port terminals at the entrance to the Panama Canal, leading the government to annul the deals.

The German chancellor followed a string of other leaders to Beijing this week and had meetings which included all the usual expected topics but did little more than hint at the basic problems lying beneath the relationships. Something has to be done about trade imbalances, we want to take relations to a new level… This is a very strange time in world affairs, of course, but there are certain fundamental issues which are unavoidable. For Germany, in terms of its relationship with China, one sees two pretty weighty issues that need to be addressed. One is the war in Ukraine and the second is the huge investment by German companies in the Chinese economy over the past 40 years and the consequence and benefits accruing (or not) from that. From the announcements that have followed the meetings, it’s not clear to what extent either of these topics were addressed in any detail.

At the heart of the second problem is the fact that German companies have transferred just about all their technology to China over the past four decades, supposedly in the belief that it was safe to do so, that the relationship was long-term and reciprocal. But as many people, including German businesspeople, have pointed out, this was shortsighted and naive, and the Chinese side can’t be faulted for take advantage of the opportunities offered once the basis of the relationship were accepted. The basic arrangement at the heart of most of the major German investments and commitments in China over the past few decades was joint ventures with state owned enterprises and a 49-51 split to the benefit of the SOEs. And so here we are, already in the next era. German firms are still weighed down by legacy issues such as unions with a real role, and Chinese companies can do just about all the things that only German companies could do in the 1980s.

China’s economy has problems too, of course, and the German economy and society arguably have greater depth and flexibility as a consequence of the systemic difference which should help them to address problems and find solutions. As long as they clearly accept that the problems exist. Ditto other European countries, and also collectively as the EU. If the EU operated in concert, it would change the nature of Europe’s relationship to China. Ditto on the Ukraine war issue.

Anyway, Mr. Merz came away with a few benefits, including an order for 120 Airbus planes, although that is more of a French gig than it is German. The offer acknowledged the existence of a single entity called Europe which is encouraging, and the fact is that Europe has some strong cards to play in this discussion if they operate in a united way. And ironically, it is precisely the provision of Airbus planes which could be used as a bargaining ship to obtain a revision of the Beijing approach on, for instance, rare earth supplies. But the precondition is clear and united resolve.

Anyway, the new lunar year has begun with much energy. We wish you all happy horses!

China’s consumer spending rose 8.6% year-on-year in the first four days of this year’s Chinese New Year holiday, reports Caixin. This was backed by an extended holiday and fresh government stimulus that lifted outlays on services and technology.

The increase offers a sign of resilience as policymakers roll out renewed support measures, including a consumer incentive campaign and the issuance of long-term treasury bonds aimed at bolstering domestic demand. Major regional hubs reported solid growth. Shanghai recorded RMB 60.35 billion in total online and offline consumption from February 15-22, up 12.8% from a year earlier. Hubei province posted an 11.6% rise in retail and catering sales to RMB 30.55 billion during the first seven days of the break, while key pedestrian streets saw a surge in both foot traffic and turnover.

The recovery was supported by the “Happy Shopping for New Year” campaign launched by the Ministry of Commerce and nine other government departments. The program earmarked RMB 2.05 billion for vouchers and subsidies, while a pilot invoice lottery in 50 cities offered a total prize pool exceeding RMB 1 billion. In addition, the issuance of RMB 62.5 billion in ultra-long special sovereign bonds late last year to support consumer goods trade-ins helped drive demand for green and smart products during the holiday.

Chinese dronemaker DJI said it has filed a suit challenging the Federal Communications Commission decision to bar imports of all of its new models and critical components, reports Reuters. The ban also includes products from Autel, another China-based drone maker.

DJI, the world’s largest dronemaker, said in a statement it had challenged the FCC decision in the US Court of Appeals for the 9th Circuit. “It carelessly restricts DJI’s business in the US and summarily denies US customers access to its latest technology,” the Chinese dronemaker said.

The FCC decision in December meant that DJI, Autel and other foreign drone companies will not be able to obtain the necessary FCC approval to sell new models of drones or critical components in the US, but it can continue to sell existing versions. In December 2024, Congress ordered DJI and Autel added to the banned list within one year unless a security review deemed it appropriate to continue sales.