Monday morning links
China cut the subsidies for new energy vehicles by 30% and plans to scrap them entirely by the end of 2022. Lower subsidies will have severe ramifications for the battery industry and OEMs reliant on the Chinese market, including Tesla.
Asia’s Regional Comprehensive Economic Partnership (RCEP) became effective on 1 January 2022. Tariffs between the 15 member nations will drop significantly. However, unlike the TPP, there are no rules covering SOE subsidies, environmental regulation, product standards or cyber security in the RCEP. There will be a tendency for the cheapest products to win, and the member nations will therefore be incentivised to adopt lax regulation to compete.
Malaysian palm oil equipment maker CB Industrial continues to buy back shares, as you can see from the buyback screen below.