The world this week Business
The Trump administration intensified its trade war with China, threatening to impose tariffs on a further $200bn-worth of goods, including tuna, chemicals and handbags. This came a few days after America fired its first salvo, levying duties on $34bn-worth of Chinese industrial exports, to which China retaliated with tariffs on an equivalent value of American goods. America’s latest round of duties will not come into force until after a consultation process. Some who support targeting China’s trade practices question the broad imposition of tariffs, fearing it will drive up American consumer prices.
One way to get around tariffs
Following China’s decision to loosen restrictions on foreign carmakers, Tesla signed a memorandum of understanding with the authorities in Shanghai to build a factory there. Once the project obtains the necessary permits, Tesla thinks it will take two years to build the plant, its first outside America, which will eventually make half a million cars a year. Tesla has had to raise the price of its electric cars in China to offset the cost of the government’s retaliatory tariffs on American vehicles.
Xiaomi’s IPO was a damp squib. The share price of the Chinese smartphone-maker closed just below the offer price of HK$17 ($2.17) on the first day of trading in Hong Kong. But it climbed by 13% on the second day after news that the company is to be included in the Hang Seng stockmarket index. That will allow mainland Chinese investors to buy shares in Xiaomi through a scheme that connects the Hong Kong and Shanghai exchanges.
In a surprise move, Broadcom agreed to buy CA Technologies for $18.9bn. Broadcom is one of the world’s biggest chipmakers. Its acquisition of CA Technologies takes it into a new market, for infrastructure software. Earlier this year Broadcom’s hostile bid for Qualcomm, another chipmaker, was blocked by the White House. It has since completed the relocation of its domiciled headquarters from Singapore to San Jose, which should spare this deal from such close scrutiny.
博通公司（Broadcom）出人意料地同意，以189亿美元收购CA Technologies公司。博通公司是全球最大的芯片制造商之一。这次收购CA技术公司使其进军基础设施软件的新市场。年初，博通公司恶意收购另一家芯片制造商高通(Qualcomm)时遭到了白宫方面的阻挠。此后，该公司将总部从新加坡搬迁至圣何塞(San Jose)，此举使这笔收购案免受过于严密的审查。
Samsung said it expects to make an operating profit of 14.8trn won ($13.2bn) in the second quarter. It had chalked up four consecutive quarters of record profits, something the electronics giant may find hard to repeat given waning sales of its flagship Galaxy S9 smartphone and falling prices for its flash memory chips.