International News 02 June 2025
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China Government Bans Price War in Automotive Industry
Chinese government has urged the automotive industry to cease the ongoing price war as it is seen as a threat to public health and the industry's sustainability. Executives from major automotive companies have been bickering over price pressures and heavy consumer discounts since early 2023, disregarding government and industry concerns. China's Ministry of Industry has vowed to address excessive competition, warning that in a price war, no one truly benefits or secures a future. Prominent electric car manufacturer BYD recently resumed offering discounts, prompting competitors Geely and Chery to follow suit. The China Association of Auto Manufacturers echoed the call to end price wars, emphasizing their detrimental effects on company profits and efficiency.
https://internasional.kontan.co.id/news/pemerintah-china-melarang-perang-harga-industri-otomotif
OPEC+ Triples Oil Production
OPEC+ has decided to increase oil production by 411,000 barrels per day in July, aiming to gain market share and enforce quotas. The decision, made during an online meeting, reflects confidence in the global economic outlook and market conditions. For years, OPEC+ has restrained production to stabilize oil prices, but with improved conditions, members have started gradually increasing output, with plans for further increases in coming months. Analysts believe this move is driven by a priority on market share, aiming to boost revenue through sales volumes if oil prices do not meet expectations.
https://internasional.kontan.co.id/news/opec-memacu-produksi-minyak-tiga-kali-lipat
Trump Raises Import Steel Tariff to 50%, Other Countries Condemn This Policy
Following recent deals involving Nippon Steel and US Steel, US President Donald Trump announced plans to increase tariffs on steel and aluminum imports from 25% to 50%. Trump aims to bolster the domestic steel industry with this move, which came amidst accusations against China for violating trade agreements. The tariff increase coincided with a significant acquisition deal, emphasizing its role in preserving jobs for US steelworkers. While some investors saw potential profit boosts, the announcement faced criticism from US trading partners worldwide. The Canadian Chamber of Commerce expressed concern over the impact on North American economic security, highlighting the disruption to cross-border supply chains, particularly in Canada. The decision has led to mixed reactions, with implications for both the US economy and global trade relations.