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Beijing condemned on Wednesday new US warnings on the use of AI chips by Chinese tech giant Huawei, vowing it would take steps against “bullying” efforts to restrict access to high-tech semiconductors and supply chains.Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing’s military systems and otherwise undermine American dominance in AI.US President Donald Trump’s administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence.Some US lawmakers feared the restrictions would have incentivised countries to go to China for AI chips, spurring the superpower’s development of state-of-the-art technology.But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei’s Ascend chips, would put them at risk of violating US export controls.In a statement Wednesday, Beijing’s commerce ministry described the warnings as “typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain”.China accused the US of “abusing export controls to suppress and contain China”.”These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China’s development interests,” the commerce ministry said.It also warned that “any organization or individual that enforces or assists in enforcing such measures” could be in violation of Chinese law.And it vowed to take “firm steps to safeguard its legitimate rights and interests” in response.- Chips on the table -The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models.And those found using Huawei’s Ascend chips without clearance from Washington, the guidance read, can face “substantial criminal and administrative penalties, up to and including imprisonment, fines, loss of export privileges, or other restriction”.The US commerce department said its policy was aimed at sharing American AI technology “with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries”.Previous US rules divided countries into three tiers, each with its own level of restrictions.Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive.Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.Speaking at Taiwan’s top tech show on Wednesday, Nvidia CEO Jensen Huang described US export controls on AI chips to China as a “failure”, since companies are using locally developed technology. “The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development,” Huang said.

Beijing condemned on Wednesday new US warnings on the use of AI chips made in China, vowing it would take steps against “bullying” efforts to restrict access to high-tech semiconductors and supply chains.Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing’s military systems and otherwise undermine American dominance in AI.US President Donald Trump’s administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence.Some US lawmakers feared the restrictions would have incentivized countries to go to China for AI chips, spurring the superpower’s development of state-of-the-art technology.But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei’s Ascend chips, would put them at risk of violating US export controls.In a statement Wednesday, Beijing’s commerce ministry described the warnings as “typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain”.China accused the US of “abusing export controls to suppress and contain China”.”These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China’s development interests,” the commerce ministry said.It also warned that “any organization or individual that enforces or assists in enforcing such measures” could be in violation of Chinese law.And it vowed to take “firm steps to safeguard its legitimate rights and interests” in response.The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models.The US commerce department said its policy was aimed at sharing American AI technology “with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries”.Previous US rules divided countries into three tiers, each with its own level of restrictions.Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive.Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.Speaking at Taiwan’s top tech show on Wednesday, Nvidia CEO Jensen Huang described US export controls on AI chips to China as a “failure”, since companies are using locally developed technology. “The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development,” Huang said.

European and Asian stocks closed higher on Tuesday while Wall Street equities retreated as markets monitored US Treasury yields amid worries about the US budget deficit.Major US indices spent the entire session in negative territory as the S&P 500 finished lower after six straight positive sessions.”The main driver is a consolidation day,” said Briefing.com analyst Patrick O’Hare. “The market has just been so red hot.”US President Donald Trump visited Capitol Hill Tuesday, where he faces challenges to unify a House Republican caucus that includes lawmakers from high-tax Northeastern states seeking a bigger tax deduction and members who are worried about increasing the deficit.Investors have also been fixated on higher yields in the Treasury market. Moody’s highlighted the deficit last week in a downgrade of the US credit rating.In Europe, London and Paris finished higher and Frankfurt’s DAX gained 0.4 percent to go past 24,000 points for the first time.Some of the rise stemmed from hopes of a European Central Bank interest rate cut next month, said Philippe Cohen, portfolio manager at Kiplink.Luxury clothing company Chanel waited until after Paris’s close to report a 28-percent drop in 2024 net profit.Asian stocks closed mostly higher, with Hong Kong rising more than one percent, buoyed by China cutting its interest rates to historic lows, and Tokyo also up.The Chinese central bank move, which had been expected, comes as officials battle to kickstart the economy amid trade tensions with the United States and a persistent domestic spending slump.Elsewhere, the Australian central bank cut its key interest rate to its lowest level in two years, citing steady progress in bringing inflation under control.In corporate news, billionaire Elon Musk said he was pulling back from spending his fortune on politics, and asserted the Tesla electric car company he runs was doing well despite blowback over his support of Trump.Aside from a Tesla sales decline in Europe, “we’re strong everywhere else,” Musk said.Chinese battery giant CATL ended its first day on the Hong Kong Stock Exchange more than 16 percent higher, having raised $4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle batteries sold worldwide.- Key figures at around 2030 GMT -New York – Dow: DOWN 0.3 percent at 42,677.24 (close)New York – S&P 500: DOWN 0.4 percent at 5,940.46 (close)New York – Nasdaq Composite: DOWN 0.4 percent at 19,142.71 (close)London – FTSE 100: UP 0.9 percent at 8,781.12 (close)Paris – CAC 40: UP 0.8 percent at 7,942.42 (close)Frankfurt – DAX: UP 0.4 percent at 24,036.11 (close)Tokyo – Nikkei 225: UP 0.1 percent at 37,529.49 (close)Hong Kong – Hang Seng Index: UP 1.5 percent at 23,681.48 (close)Shanghai – Composite: UP 0.4 percent at 3,380.48 (close)Euro/dollar: UP at $1.1284 from $1.1240 on MondayPound/dollar: UP at $1.3391 from $1.3361Dollar/yen: DOWN at 144.47 yen from 144.86 yenEuro/pound: UP at 84.26 pence from 84.13 penceWest Texas Intermediate: DOWN 0.2 percent at $62.56 per barrelBrent North Sea Crude: DOWN 0.2 percent at $65.38 per barrel

The EU said Tuesday that it was preparing to impose a two-euro ($2.25) flat fee on the billions of low-value packages that flood into the bloc each year, the great majority from China.Trade chief Maros Sefcovic told the European Parliament that e-commerce platforms would be expected to pay the levy per parcel, which aims to help the European Union tackle the challenges from the massive influx of inexpensive items.The fee would remove the customs-free status of packages worth less than 150 euros that are imported directly to consumers, often via platforms like Chinese-founded Temu and Shein.Parcels sent directly to warehouses where they are stored in the EU would face a lower fee of 50 cents, Sefcovic said.Last year, 4.6 billion such small packages entered the EU — more than 145 per second — with 91 percent originating in China. The EU expects the numbers to rise.Platforms, including Shein and Temu, are suspected by Brussels of not doing enough to prevent the sale of products that do not meet European standards.The EU also fears that many of the products imported into the 27-country bloc are unsafe, counterfeit and potentially even dangerous to consumers.Sefcovic said the figure represented a “completely new challenge to the control, to the safety, to making sure that the standards are properly checked of the products which are shipped to the European Union”.European retailers say they face unfair competition from overseas platforms, which they claim do not often comply with the EU’s stringent rules on products.- ‘Compensate cost’ -Sefcovic noted the “huge” workload for customs officials, “therefore I wouldn’t look at the handling fee as a tax, simply the fee to compensate the cost”.Brussels also hopes part of the revenues from the fee will go towards the EU budget.Paris is especially concerned about the issue: around 800 million such packages were shipped to France alone last year.Last month, France said it wanted to start charging non-EU online sellers a handling fee per package until 2028 — after which the EU is expected to phase out the customs-free status.Shein and Temu did not immediately respond to AFP requests for comment.The United States ended tariff exemptions earlier this month for goods shipped from China worth less than $800, which are to face a levy of 54 percent.

Wall Street stocks fell Tuesday, taking a breather from a recent market rally and digesting a US credit rating downgrade, while European and Asian shares rose as China cut interest rates to historic lows.The dollar strengthened a little against major currencies, just ahead of a meeting of G7 finance ministers in Canada that will discuss global economic conditions, as well as seeking a common position on Ukraine.The Chinese central bank move, which had been expected, comes as officials battle to kickstart the economy amid trade tensions with the United States and a persistent domestic spending slump.In New York, the S&P 500, Dow Jones and Nasdaq indices all shed less than half a percentage point at the start of trading. Analysts said investors did not seem overly alarmed by Moody’s downgrading the US credit rating last Friday, though it was weighing on the dollar and US bonds.”The downgrade news could have easily triggered more of a serious downside correction,” noted David Morrison, senior market analyst at Trade Nation. But “it looks as if sentiment is sufficiently resilient to take this punch on the nose in its stride,” he said.He added, that more generally, “it appears that there’s a general expectation that the US will sort out all its trade issues with its trading partners by early June, or by August in the case of China”.The US market focus on Tuesday was more on the fate of US President Donald Trump’s giant tax cut proposal, which he was discuss in a closed-door meeting with House Republicans. The legislation is expected to face a close vote later this week.In Europe, major stock markets were in positive territory in mid-afternoon trading, with the FTSE 100 up nearly 0.9 percent up. The Frankfurt DAX index topped 24,000 points for the first time, while Paris was also in the green. Asian markets closed higher, with Hong Kong rising more than one percent and Shanghai and Tokyo both up. Elsewhere, the Australian central bank cut its key interest to its lowest level in two years, citing steady progress in bringing inflation under control.In company news, Chinese battery giant CATL ended its first day on the Hong Kong stock exchange over 16 percent higher, having raised US$4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle batteries sold worldwide.- Key figures at around 1335 GMT -New York – Dow: DOWN 0.1 percent at 42,742.92 pointsNew York – S&P 500: DOWN 0.3 percent at 5,944.86New York – Nasdaq Composite: DOWN 0.5 percent at 19,128.80 London – FTSE 100: UP 0.6 percent at 8,775.23Paris – CAC 40: UP 0.8 percent at 7,943.25Frankfurt – DAX: UP 0.6 percent at 24,071.32Tokyo – Nikkei 225: UP 0.1 percent at 37,529.49 (close)Hong Kong – Hang Seng Index: UP 1.5 percent at 23,681.48 (close)Shanghai – Composite: UP 0.4 percent at 3,380.48 (close)Euro/dollar: UP at $1.1264 from $1.1244 on MondayPound/dollar: UP at $1.3371 from $1.3360Dollar/yen: DOWN at 144.60 yen from 144.87 yenEuro/pound: UP at 84.22 pence from 84.14 penceWest Texas Intermediate: DOWN 0.6 percent at $61.78 per barrelBrent North Sea Crude: DOWN 0.6 percent at $65.16 per barrel

Stock markets rebounded Tuesday following losses fuelled by US debt worries, with sentiment boosted by China cutting interest rates to historic lows and hopes of a Russia-Ukraine ceasefire.In Germany, the Frankfurt DAX index topped 24,000 points for the first time, while Paris and London also gained in early afternoon deals. Asian markets closed higher, with Hong Kong rising more than one percent and Shanghai and Tokyo both up. “Renewed hopes for a ceasefire between Ukraine and Russia, combined with another wave of stimulus for China’s economy has provided optimism,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.China’s central bank cut two key interest rates to record lows on Tuesday as officials battle to kickstart the economic amid trade tensions with the United States and a persistent domestic spending slump. The move came a day after data showed Chinese retail sales came in below expectations in April, highlighting a continued lack of confidence among consumers.The dollar slightly extended losses owing to Moody’s removal of the United States’ last gold standard sovereign bond rating over a debt pile that could balloon further.Following an initial sell-off, bonds stabilised and equities closed higher on Wall Street on Monday, as investors shrugged off the downgrade.”The renewed rush for safe havens sparked by the US credit rating downgrade, has reversed, with gold falling back as investors have more appetite for equities,” Streeter added.Elsewhere, the Australian central bank cut its key interest to its lowest level in two years, citing steady progress in bringing inflation under control.In company news, Chinese battery giant CATL ended its first day on the Hong Kong stock exchange over 16 percent higher, having raised US$4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle batteries sold worldwide.In Copenhagen, shares in renewables firm Orsted soared 15 percent after the Trump administration reversed an order to halt the construction of a huge wind firm off the New York coast by Norwegian energy company Equinor. The sector also got a boost from the Danish government earmarking billions in aid to stimulate investment in a huge wind project. – Key figures at around 1055 GMT -London – FTSE 100: UP 0.6 percent at 8,753.68Paris – CAC 40: UP 0.5 percent at 7,923.34Frankfurt – DAX: UP 0.5 percent at 24,059.26Tokyo – Nikkei 225: UP 0.1 percent at 37,529.49 (close)Hong Kong – Hang Seng Index: UP 1.5 percent at 23,681.48 (close)Shanghai – Composite: UP 0.4 percent at 3,380.48 (close)New York – Dow: UP 0.3 percent at 42,792.07 (close)Euro/dollar: UP at $1.1246 from $1.1244 on MondayPound/dollar: UP at $1.3364 from $1.3360Dollar/yen: DOWN at 144.57 yen from 144.87 yenEuro/pound: UP at 84.16 pence from 84.14 penceWest Texas Intermediate: DOWN 0.2 percent at $62.03 per barrelBrent North Sea Crude: DOWN 0.2 percent at $65.41 per barrel

US President Donald Trump’s real estate company is seeking to build a tower in Ho Chi Minh City, Vietnamese officials said on Tuesday, with his son due to scout locations this week.Authorities in Vietnam’s southern business hub said in a statement they met a representative of the Trump Organization and its local partner, the Kinhbac City Development Corporation (KBC).The statement said authorities had already conducted a field survey of two potential locations in the eastern part of the city on Monday and are scheduled to meet leaders of the Trump Organization on Thursday.The company, which builds luxury developments around the world, has come under scrutiny, with critics accusing Trump of leveraging his political position for personal financial gain.The state-controlled Tuoi Tre newspaper said the organisation’s senior vice-president Eric Trump, the US president’s second son, would lead the visit.It also said the delegation would visit a proposed location for “Trump Tower”.The Trump Organization did not respond immediately to AFP’s request for comment.Tuoi Tre said Eric Trump would also attend a ground-breaking ceremony on Wednesday for a $1.5 billion luxury resort and golf course developed by the Trump Organization and KBC.The 990-hectare golf complex in northern Hung Yen province outside Hanoi will feature a 54-hole course and residential villas, the newspaper said.Project director Charles Boyd-Bowman said in a meeting with Vietnam’s Prime Minister Pham Minh Chinh in March that his group aimed to finish the golf resort in March 2027, before Vietnam hosts the Asia-Pacific Economic Cooperation (APEC) summit.Vietnam and the United States are engaged in trade talks after President Trump threatened a 46 percent levy on Vietnamese goods as part of his global tariff blitz.Trump visited the Vietnamese capital in 2019 for his abortive second summit with North Korean leader Kim Jong Un.He described Hanoi at the time as an “incredible city”, praising Vietnam for “the job they’ve done — economic development”.

Chinese battery giant CATL ended its first day on the Hong Kong Stock Exchange more than 16 percent higher Tuesday, having raised US$4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide.The firm has been buoyed by a rapid growth in China’s domestic electric vehicle sector and it now works with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.However, it has also found itself in the crossfire of a superpower clash between Washington and Beijing for tech dominance, with Washington putting it on a blacklist naming it as a military company.The firm is already traded in the southern Chinese city of Shenzhen, and its plan for a secondary listing in Hong Kong was announced in December.In morning trading its Hong Kong shares hit a high of HK$311.40 (US$39.92), up 18.4 percent from its listing price of HK$263.00.The stock closed at HK$306.20.”This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy,” CATL’s founder and chairman Robin Zeng said at the firm’s listing ceremony on Tuesday.The raised funds could be used to accelerate its overseas expansion, including building its second European factory in Hungary after launching its first in Germany in January 2023.The strong interest in the company’s shares come even as it comes under the spotlight in the United States.In a list issued in January by the US Defense Department, CATL was designated as a “Chinese military company”.The US House Select Committee on the Chinese Communist Party highlighted this inclusion in letters to two Wall Street banks in April, urging them to withdraw from the IPO deal over its alleged links to the military.But the banks — JPMorgan and Bank of America — remain onboard.- Hong Kong IPO goal -Beijing has denounced the list as “suppression”, while CATL denied engaging “in any military related activities”.CATL also said in May filings it was “proactively engaging” with the Pentagon to “address the false designation”.Founded in 2011 in the eastern Chinese city of Ningde, the company has been given strong financial support from Beijing, which has sought in recent years to shore up domestic strength in certain strategic high-tech sectors.It has also weathered a fierce price war in China’s expansive EV sector that has put smaller firms under huge pressure to compete while remaining financially viable.Tuesday’s blockbuster listing is also a boon for Hong Kong’s stock exchange, which is eager for the return of big-name Chinese listings as it looks to regain its crown as the world’s top venue for IPOs.The Chinese finance hub saw a steady decline in new offerings after Beijing’s regulatory crackdown starting in 2020 led some mainland mega-companies to put their plans on hold, while a strict security law added to the uncertainty for companies looking to list.Data from the Hong Kong Stock Exchange shows it is processing dozens of applications from Chinese companies this year.Analysts said Tuesday’s IPO showcases Hong Kong’s role as a place for Chinese companies to raise capital.”We are also seeing a rising demand on portfolio diversification away from US dollar-denominated assets, underscored by the recent strength in the Hong Kong dollar,” Jason Lui, head of APAC equity and derivative strategy at BNP Paribas, told AFP.

Most markets rose Tuesday as risk appetite returned following the previous day’s US rating-fuelled losses, with sentiment also boosted after China cut interest rates to historic lows.The rally tracked advances on Wall Street, where the initial selloff sparked by Moody’s removal of Washington’s triple-A grade soon gave way to a push back into beaten-down equities amid hopes about US trade talks.After Donald Trump’s April 2 tariff blitz sowed global turmoil, the deal between China and the United States last week — which slashed eye-watering tit-for-tat levies — has re-energised dealers and pushed most markets back to levels before the US president’s “Liberation Day” duties.Trump suspended his harshest measures for 90 days until mid-July, and while few solid agreements have been reached so far there is optimism that the worst of the crisis has passed.Still, China caused a little concern after it accused Washington of violating their tariff deal in Geneva this month following a US warning that using Huawei’s AI chips anywhere in the world would break its export controls.Beijing called for a correction and warned of measures if the White House continued. Traders are also hoping the Federal Reserve will cut interest rates this year, with two reductions expected, according to Bloomberg News.However, two central bank officials remained cautious about when to resume their monetary easing, amid worries that the tariffs and possible tax cuts will reignite inflation.New York Fed boss John Williams indicated decision-makers might not be able to move before September, while the central bank’s vice chairman Philip Jefferson urged patience, adding that it was crucial to make sure any price increases do not become entrenched.Hong Kong stocks rose more than one percent, while Shanghai, Tokyo, Sydney, Singapore, Taipei, Bangkok, Wellington and Jakarta were all up.London, Paris and Frankfurt were also well up in morning exchanges.However, Neil Wilson at Saxo markets warned that traders were not yet out of the woods as US Treasury yields remain elevated.”Markets are clearly perturbed by ongoing trade uncertainty, economic policy uncertainty and the potential to lock in sweeping tax cuts in the US, undermining the fiscal position further,” he wrote in a commentary.”The question now is what policy moves can be engineered to tame yields, which could be a worry for equity markets.”- CATL’s soaring debut -The gains came as China’s central bank cut two key interest rates as officials battle to kickstart the economy, which faces persistent headwinds from a long-term domestic spending slump, a protracted debt crisis in the property sector and high youth unemployment.The People’s Bank of China lowered its one-year Loan Prime Rate, the benchmark for the most advantageous rates lenders can offer to businesses and households, to 3.0 percent from 3.1 percent.The five-year LPR, the benchmark for mortgage loans, was cut to 3.5 percent to 3.6 percent. Both rates were last cut in October to what were then record lows.”The rate cuts will reduce interest payments on existing loans, taking some pressure off indebted firms. It will also reduce the price of new loans,” Zichun Huang, China economist at Capital Economics, said in a note.However, she added that “modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity”.The “reductions… probably won’t be the last this year”, she said.The move came a day after data showed Chinese retail sales came in below expectations in April, highlighting a continued lack of confidence among consumers.In Hong Kong, Chinese battery giant CATL soared more than 18 percent at one point on its debut, having raised US$4.6 billion in the world’s biggest initial public offering this year.It finished 16.4 percent higher.The firm, which produces more than a third of all electric vehicle batteries sold worldwide, saw strong demand even after it was designated as a “Chinese military company” on a US list in January.The US House Select Committee on the Chinese Communist Party even highlighted this inclusion in letters to two US banks in April, urging them to withdraw from the IPO deal with the “Chinese military-linked company”.But the two banks — JPMorgan and Bank of America — are still onboard.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 37,529.49 (close)Hong Kong – Hang Seng Index: UP 1.5 percent at 23,681.48 (close)Shanghai – Composite: UP 0.4 percent at 3,380.48 (close)London – FTSE 100: UP 0.2 percent at 8,720.07Euro/dollar: UP at $1.1276 from $1.1244 on MondayPound/dollar: UP at $1.3393 from $1.3360Dollar/yen: DOWN at 144.14 yen from 144.87 yenEuro/pound: UP at 84.19 pence from 84.14 penceWest Texas Intermediate: DOWN 0.6 percent at $62.29 per barrelBrent North Sea Crude: DOWN 0.7 percent at $65.06 per barrelNew York – Dow: UP 0.3 percent at 42,792.07 (close)

Chinese battery giant CATL, which soared on its Hong Kong debut Tuesday, is a domestic success story with a risk-taking founder and global ambitions — but has found itself in the crossfire of a superpower clash for tech dominance.CATL — whose shares are already traded in Shenzhen — raised more than US$4.6 billion from its Hong Kong initial public offering, the world’s largest so far this year.The company produced more than a third of all EV batteries sold worldwide in 2023, working with many major automotive brands including Tesla, Mercedes-Benz, BMW and Volkswagen.Its batteries offer some of the fastest charging speeds in the world — this year, the firm said its Shenxing Superfast Charging Battery can add 520 kilometres (323 miles) of driving range after just five minutes of charging and withstand freezing temperatures.That’s 30 percent faster than main competitor BYD’s Super-e platform, which claims to deliver around 400 kilometres of range in five minutes.Founded in 2011, Contemporary Amperex Technology Co., Limited’s success has been buoyed by strong policy support from Beijing, which has poured billions into clean energy in the past decade and pushed to ensure self-reliance in high-tech sectors viewed as strategically vital.Its cheap, ultra-fast batteries have also been cited as a key driver behind the rapid rise of the Chinese EV market, which is now the world’s largest.It has also weathered a brutal price war between giants in the sector, with sales taking a hit as broader consumption in the country slumps.- Powerhouse -Billionaire CEO and founder Robin Zeng — once dubbed China’s “battery king” — is the country’s fifth richest person and the world’s 45th wealthiest, according to Bloomberg.The firm’s name in Chinese pays tribute to his hometown, the coastal eastern city of Ningde.On his blog Interconnected, tech writer and investor Kevin Xu described Zeng’s story as “classically rags to riches” in which he turned his “backwater town to a battery powerhouse”.He describes Zeng as a risk-taker and a “gambler” who has deftly charted the firm through regulatory uncertainty and fierce competition from domestic rivals.But CATL has also found itself at the centre of a struggle between the United States and China for tech dominance.The superpowers are fighting for the upper hand in developing advanced technologies critical to the functioning of the modern economy, including batteries, computer chips and artificial intelligence.CATL’s plans for a collaboration with car giant Ford on a US$3.5 billion plant in Marshall, Michigan, drew national security concerns last year.And in January, the United States defence department released a list that designated CATL as a “Chinese military company”.The firm has denied engaging in military activities, and Beijing has denounced the move as “suppression”.Proceeds from the firm’s IPO could be used to ramp up its plans for overseas expansion — particularly in Europe.It is currently constructing its second factory on the continent in Hungary after opening its first in Germany in January 2023.- ‘Thrive under pressure’ -And the firm said in December that it would work with Stellantis — which also owns the Chrysler, Jeep, Dodge and RAM truck brands — to make EV batteries in Spain, with production slated to begin by the end of 2026.It has even signed deals as far afield as the Democratic Republic of Congo, where it signed an agreement in 2021 with one of the world’s largest cobalt producers to develop a mine.And in Bolivia, its subsidiary CBC signed a US$1 billion deal last year to build two lithium carbonate production plants in the country’s southwest.CATL is aiming to pre-empt shifting trends in the EV sector, launching last month a sodium-ion battery, viewed as a cheaper and safer alternative to the lithium-ion batteries that are widely used in both electronics and EVs but pose a fire risk if damaged.”CATL became CATL because the government helped, but not so much that it became lazy,” investor Xu wrote.”Competition… also helped, battle-testing its technology and supply chain, but not before it got a leg up from the protectionist subsidies first,” Xu said.”Most intriguingly, it got an innate but prodigious gambler at the helm, who was born too poor to ever feel loss aversion… astute enough to read government policy tea leaves and paranoid enough to always thrive, not die, under pressure.”