Image: Phuong Uyen Vo Hoang via Unsplash
Welcome to China Business News, NEO’s weekly roundup of top business developments as reported by news outlets in China and the region.
This week’s highlights:
- The yuan dropped to its lowest value against the dollar since the 2008 global financial crisis, reaching 7.2 yuan to the dollar on 28 September. Analysts believe that China’s Central Bank will slow down its monetary easing policy in order to prevent further downward pressure on the yuan, but this is likely to slow the growth of the Chinese economy. (The United Morning Post)
- Taiwan has pledged to work closely with the United States and its allies in chip manufacturing to prevent mainland China from acquiring the most advanced technology in the field. Chen Zhengqi, undersecretary of state for economic affairs at Taiwan’s Ministry of Economic Affairs, said Taiwan would join the U.S.-led “Chip 4 Alliance” to safeguard the interests of Taiwanese companies. Taiwan will keep advanced chip research and development strictly within Taiwan’s borders and take measures to prevent China’s People’s Liberation Army from using Taiwan’s chips. (The United Morning Post)
- China’s financial regulator has asked all major Chinese banks to provide at least 600 billion yuan ($120.741 billion) to the financially troubled property sector to help ease the property market’s growing liquidity crisis, sources close to the matter said. Earlier, Chinese officials encouraged local governments to loosen restrictions on home purchases. The Chinese government has also introduced property market stimulus measures, allowing some cities to lower the interest rate on first home loans. (The United Morning Post)