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    I.M.F. Sees Steady Growth but Warns of Rising Protectionism

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    The International Monetary Fund offered an upbeat economic outlook but said that new trade barriers and escalating wars could worsen inflation.The global economy is approaching a soft landing after several years of geopolitical and economic turmoil, the International Monetary Fund said on Tuesday. But it warned that risks remain, including stubborn inflation, the threat of escalating global conflicts and rising protectionism.In its latest World Economic Outlook report, the I.M.F. projected global output to hold steady at 3.2 percent in 2024, unchanged from 2023. Although the pace of the expansion is tepid by historical standards, the I.M.F. said that global economic activity has been surprisingly resilient given that central banks aggressively raised interest rates to tame inflation and wars in Ukraine and the Middle East further disrupt supply chains.The forecasts came as policymakers from around the world began arriving in Washington for the spring meetings of the International Monetary Fund and the World Bank. The outlook is brighter from just a year ago, when the I.M.F. was warning of underlying “turbulence” and a multitude of risks.Although the world economy has proved to be durable over the last year, defying predictions of a recession, there are lingering concerns that price pressures have not been sufficiently contained and that new trade barriers will be erected amid anxiety over a recent surge of cheap Chinese exports.“Somewhat worryingly, progress toward inflation targets has somewhat stalled since the beginning of the year,” Pierre-Olivier Gourinchas, the I.M.F.’s chief economist, wrote in an essay that accompanied the report. “Oil prices have been rising recently in part due to geopolitical tensions and services inflation remains stubbornly high.”He added: “Further trade restrictions on Chinese exports could also push up goods inflation.”The gathering is taking place at a time of growing tension between the United States and China over a surge of Chinese green energy products, such as electric vehicles, lithium batteries and solar panels, that are flooding global markets. Treasury Secretary Janet L. Yellen returned last week from a trip to China, where she told her counterparts that Beijing’s industrial policy was harming American workers. She warned that the United States could pursue trade restrictions to protect investments in America’s solar and electric vehicle industries.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      The U.S. Investors Caught in the Scrum Over TikTok

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      Major U.S. investment firms such as General Atlantic, Susquehanna and Sequoia Capital own stakes in ByteDance, the parent of TikTok. Their investments are increasingly under fire.For years, the U.S. investors who backed ByteDance, the Chinese internet company that owns TikTok, have wrestled with the complexities of owning a piece of a geopolitically fraught social media app.Now it’s gotten even more complicated.A bill to force ByteDance to sell TikTok is winding its way through the Senate after sailing through the House this month. Questions about whether TikTok’s Chinese ties make it a national security threat are mounting. And U.S. investors including General Atlantic, Susquehanna International Group and Sequoia Capital — which collectively poured billions into ByteDance — are facing increased pressure from state and federal lawmakers to answer for their investments in Chinese companies.Last year, a House committee began examining U.S. investments in Chinese companies. The Biden administration has curbed U.S. investments in China. In December, a Missouri pension board voted to divest from some Chinese investments, following political pressure from the state treasurer. And Florida passed legislation this month to require the state’s Board of Administration to sell off its stakes in China-owned companies.All of this comes on top of existing issues with owning a piece of ByteDance. The Beijing-based company has grown into one of the world’s most highly valued start-ups, worth $225 billion, according to CB Insights. That’s a boon, at least on paper, for U.S. investors who put money into ByteDance when it was a smaller company.Yet in reality, these investors have an illiquid investment that is hard to spin into gold. Since ByteDance is privately held, investors cannot simply sell their stakes in it. A confluence of politics and economics means ByteDance is also unlikely to go public soon, which would enable its shares to trade.Even if a sale of TikTok was easy to pull off, the Chinese government appears reluctant to relinquish control of an influential social media company. Beijing moved to stop a deal for TikTok to American buyers a few years ago and recently condemned the congressional bill that mandates ByteDance divest the app.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Americans Invested Billions in Chinese Companies. Now Their Money Is Stuck.

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      TikTok’s turn in geopolitical cross hairs highlights the narrowing paths to liquidity for investments in Chinese companies.When investors talk about “zombie” companies, they’re usually referring to distressed start-ups that are hobbling along, unable to grow and unlikely to ever return the money they’ve raised.But as deal makers feverishly debated efforts this week by lawmakers to force TikTok’s Chinese parent company, ByteDance, to sell the app, they talked about a new version: China zombies.China zombies may have booming businesses, but they’re unlikely to provide investors with any immediate return because they’re stuck in geopolitical cross hairs.It’s not just the investors in ByteDance who, after handing it more than $8 billion, are stuck. What looked like a mammoth growth opportunity just a few years ago — inspiring investors to pour money into companies like Ant Financial, PingPong and Geekplus — has turned hostile.“There’s more out there like ByteDance,” Evan Chuck, a partner at the advisory firm Crowell, said of companies with investors who may find themselves in this position. “It’s only really heating up further.”Selling is increasingly a long shot. Take TikTok. Even if ByteDance puts the app up for sale, the Chinese government is unlikely to allow the company’s most valuable asset, its recommendation algorithm, to be included. The country introduced new export control rules for technologies like that algorithm in 2020, just as TikTok was nearing a deal with U.S. buyers (which eventually fell apart).We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Is China’s Era of High Growth Over?

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      Beijing unveiled an annual economic target in line with last year’s, as it looks to refocus on strategically important sectors.With troubles brewing at home, China has set the same growth target as last year, reflecting its continuing economic challenges.Lintao Zhang/Getty ImagesChina’s real growth agenda China announced an official growth target of about 5 percent on Tuesday that’s already looking hard to pull off. The world’s second-biggest economy is facing headwinds, from a consumer slowdown to weak investor confidence and a trade war with the West.But the growth target only tells part of the story of how Beijing is rethinking economic policy.Left out of the pronouncements: a stimulus package. Investors watch the annual gathering of the National People’s Congress, the country’s rubber-stamp parliament, and a parallel meeting of China’s top policy body, for clues on the government’s priorities. Spending is set to remain at roughly last year’s level, suggesting that there’s no big-bang boost on the horizon.That’s not great news for Western brands that have ridden a surge in Chinese consumer spending to big growth in recent years. Apple reportedly has seen its Chinese iPhones sales plummet this year.The growth target matches last year’s too, when the post-lockdown economy grew 5.2 percent. (Some analysts say the real growth rate is much lower.) Global investors need to accept that slow growth is the new norm, says Yu Jie, a senior fellow on China at Chatham House, a think tank. “Beijing wants to draw a line under the past economic model which focused on infrastructure and property,” she told DealBook.Beijing’s real focus is reshaping the economy. The government knows that it faces a raft of challenges, but China’s leader, Xi Jinping, is trying to move away from debt-fueled sectors like property and move toward strategically important industries. The terms it uses are “high-quality development” and “new productive forces,” which includes electric vehicles, climate tech, life sciences, and artificial intelligence. The latest measures to achieve that: Premier Li Qiang, China’s second-highest official, said on Tuesday that the government would increase spending for science and technology research by 10 percent.More state-led investment is the priority, rather than “other kinds of more politically painful reforms,” George Magnus, a research associate at Oxford University’s China Center and a former chief economist at UBS, told DealBook.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      China Sets Economic Growth Target of About 5%

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      Premier Li Qiang targets growth of about 5 percent this year but signals continued reluctance to use deficit spending for economic stimulus.China’s top leaders on Tuesday set an ambitious target for economic growth but they signaled only modest stimulus measures, not the aggressive support for China’s domestic economy that many analysts believe is necessary to halt a steep slide in the housing market and ease consumer malaise and investor wariness.Premier Li Qiang, the country’s No. 2 official after Xi Jinping, said in his report to the annual session of the legislature that the government would seek economic growth of “around 5 percent.” That is the same target that China’s leadership set for last year, when official statistics ended up showing that the country’s gross domestic product grew 5.2 percent.The country’s program for state spending showed little change. Mr. Li said that the central government’s deficit would be set at 3 percent of economic output, but that the government was ready to issue another $140 billion worth of bonds to pay for unspecified projects of national importance. The more the government borrows, the more it can spend on initiatives that could boost the economy.China had also set the deficit at 3 percent early last year, before raising it in October to 3.8 percent when the government approved $140 billion in additional bonds to pay for disaster relief and prevention measures after severe summer flooding.Conspicuously missing from the premier’s agenda for this year was a move to shore up the country’s social safety net or introduce other policies, like vouchers or coupons, that would directly address Chinese consumers’ very weak confidence and unwillingness to spend money.“There’s a lot of positive noises for the economy, but not a lot of concrete proposals for how to resolve the country’s growth difficulties,” said Neil Thomas, a fellow at the Center for China Analysis of the Asia Society.

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      China consumer confidence index
      Source: China National Bureau of StatisticsBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      American Firms Invested $1 Billion in Chinese Chips, Lawmakers Find

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      A Congressional investigation determined that U.S. funding helped fuel the growth of a sector now viewed by Washington as a security threat.A congressional investigation has determined that five American venture capital firms invested more than $1 billion in China’s semiconductor industry since 2001, fueling the growth of a sector that the United States government now regards as a national security threat.Funds supplied by the five firms — GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital and Walden International — went to more than 150 Chinese companies, according to the report, which was released Thursday by both Republicans and Democrats on the House Select Committee on the Chinese Communist Party.The investments included roughly $180 million that went to Chinese firms that the committee said directly or indirectly support Beijing’s military. That includes companies that the U.S. government has said provide chips for China’s military research, equipment and weapons, such as Semiconductor Manufacturing International Corporation, or SMIC, China’s largest chipmaker.The report by the House committee focuses on investments made before the Biden administration imposed sweeping restrictions aimed at cutting off China’s access to American financing. It does not allege any illegality.Last August, the Biden administration banned U.S. venture capital and private equity firms from investing in Chinese quantum computing, artificial intelligence and advanced semiconductors. It has also imposed worldwide limits on sales of advanced chips and chip-making machines to China, arguing that these technologies could help advance the capabilities of the Chinese military and spy agencies.Since it was established a year ago, the committee has called for raising tariffs on China, targeted Ford Motor and others for doing business with Chinese companies, and spotlighted forced labor concerns involving Chinese shopping sites.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Real Estate Giant China Evergrande Will Be Liquidated

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      After multiple delays and even a few faint glimmers of hope, a Hong Kong court has sounded the death knell for what was once China’s biggest real estate firm.Months after China Evergrande ran out of cash and defaulted in 2021, investors around the world scooped up the property developer’s discounted I.O.U.’s, betting that the Chinese government would eventually step in to bail it out.On Monday it became clear just how misguided that bet was. After two years in limbo, Evergrande was ordered by a court in Hong Kong to liquidate, a move that will set off a race by lawyers to find and grab anything belonging to Evergrande that can be sold.The order is also likely to send shock waves through financial markets that are already skittish about China’s economy.Evergrande is a real estate developer with more than $300 billion in debt, sitting in the middle of the world’s biggest housing crisis. There isn’t much left in its sprawling empire that is worth much. And even those assets may be off limits because property in China has become intertwined with politics.Evergrande, as well as other developers, overbuilt and over promised, taking money for apartments that had not been built and leaving hundreds of thousands of home buyers waiting on their apartments. Now that dozens of these companies have defaulted, the government is frantically trying to force them to finish the apartments, putting everyone in a difficult position because contractors and builders have not been paid for years.What happens next in the unwinding of Evergrande will test the belief long held by foreign investors that China will treat them fairly. The outcome could help spur or further tamp down the flow of money into Chinese markets when global confidence in China is already shaken.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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      Nikki Haley Renews Call for TikTok Ban After Bin Laden Letter Circulates

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      The presidential candidate has argued that social media platforms should better police certain users and content, prompting backlash from some Republican rivals.Nikki Haley ratcheted up her calls this week for the U.S. government to ban TikTok, the Chinese-owned social media platform, after some users, weighing in on the war between Israel and Hamas, promoted “Letter to America,” a text written by Osama bin Laden after the Sept. 11 terrorist attacks.Ms. Haley, a Republican presidential contender and former U.S. ambassador to the United Nations under President Donald J. Trump, argued that the document was another example of foreign adversaries using social media to spread anti-American propaganda to young people.“That’s why you have to ban TikTok,” Ms. Haley said at a town hall in Newton, Iowa, on Friday. “Nepal just came out yesterday, and they’re banning it because they see what’s happening in their country. India did it. Why are we the last ones to do it?”In bin Laden’s letter, the mastermind of the attacks on the World Trade Center and the Pentagon, which killed nearly 3,000 people, defended the terrorists’ actions. He wrote that American taxpayers had been complicit in harming Muslims in the Middle East, including destroying Palestinian homes. He also said that Americans were “servants” to Jews, who controlled the country’s economy and media. Bin Laden was killed by U.S. military and intelligence operatives in 2011.In a statement on X, TikTok responded to Ms. Haley’s calls for a ban — which she also posted on social media Thursday — by saying that the circulation of bin Laden’s letter violated the platform’s rules banning support for terrorism and that it was policing related content accordingly.“We are proactively and aggressively removing this content and investigating how it got onto our platform,” the company said. “The number of videos on TikTok is small and reports of it trending on our platform are inaccurate.”A spokesman for the company told The New York Times on Thursday that most of the views of the videos came after news organizations wrote about them, and that the letter had also “appeared across multiple platforms and the media.”Ms. Haley’s crusade against TikTok has become a flashpoint in the Republican presidential race, coinciding with her rise in the polls. Mr. Trump, her former boss, continues to be the overwhelming front-runner, but Ms. Haley, a former South Carolina governor, is trying to overtake Gov. Ron DeSantis of Florida for second place.At the Republican debate last week in Miami, she clashed with Vivek Ramaswamy, the biotech entrepreneur, over calls for a TikTok ban. He mentioned that her daughter had an account on the platform, drawing Ms. Haley’s ire and leading her to call Mr. Ramaswamy “scum.”Ms. Haley has knocked Mr. Ramaswamy for joining TikTok after he had previously referred to the app as “digital fentanyl.” In the days following the debate, she has contended that social media platforms should better police certain users and content, prompting criticism from some of her rivals. Her call on Tuesday for social media companies to verify the identity of users and to bar people from posting anonymously was panned by Mr. DeSantis, Mr. Ramaswamy and others as unconstitutional and a threat to free speech.“You know who were anonymous writers back in the day?” Mr. DeSantis wrote on X. “Alexander Hamilton, John Jay, and James Madison when they wrote the Federalist Papers.”Ms. Haley told CNBC a day later that her comments were directed at foreign adversaries, not Americans.At town halls for her campaign in Iowa on Thursday and Friday, Ms. Haley continued to press on TikTok and brought up the letter by bin Laden.“Now you have members of our younger generation, they’re saying now they understand why he did it. That’s disgusting,” she said at a town hall in Newton on Friday. “That’s not America doing that. That’s China doing that.”Ms. Haley has assailed what she calls “foreign infiltration” into American society by hostile governments. She has particularly focused on propaganda and disinformation, which she says is being distributed by China, Russia and Iran to young Americans through TikTok and other social media platforms. She has also argued that young Americans are more sympathetic to the Palestinian cause because of “pro-Hamas videos on TikTok.”She has also hammered the rise of Chinese investment in communities across the country, particularly the acquisition of farmland and agricultural technology — an acute anxiety in rural states like Iowa.Linda Schroeder, of Dubuque, said Ms. Haley’s focus on the issue is what put the candidate over the top as her choice.“Why are we allowing it? For them to be here,” Ms. Schroeder said after hearing from Ms. Haley. “I grew up with 14 other siblings on a farm, and we still have the farm, and we’ll keep it.” More

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      Modi’s Visits Abroad Help to Build His Image in India

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      For an audience in India, the prime minister is linking his diplomatic reception abroad, and himself, to the country’s growing importance on the world stage.His grip on the levers of national power secure, his hold on India’s domestic imagination cemented, Prime Minister Narendra Modi has increasingly turned to advancing himself on a new horizon: the global stage.With a packed diplomatic calendar that includes India’s hosting of the Group of 20 summit later this year, Mr. Modi is building an image going into his re-election campaign as a leader who can win respect and investment for his vast nation. The state visit accorded to Mr. Modi in Washington, which ends on Friday, is perhaps the biggest prize yet in that quest.“It’s not just about a fairer bargain abroad,” said Ashok Malik, a former government adviser who is the India chair at the Asia Group, a consulting firm. “It’s also that ‘my investments in key foreign policy relations are actually helping to build the Indian economy and therefore create opportunities for Indians at home and strengthen India overall.’”At home, Mr. Modi’s Hindu nationalist party has continued to sideline institutions that were once important checks on the government. It has persisted in its vilification of the country’s 200 million Muslims, even as Mr. Modi used an exceedingly rare news conference in Washington to claim that there was no discrimination against anyone in India.But abroad, world leaders eager to court an ascendant India have offered little pushback. And often, they have given Mr. Modi invaluable fodder for an information campaign that shapes perceptions of him among many Indian voters who are ecstatic to see their country’s importance affirmed.Eid-al Fitr prayers in Chennai, India, in April. Mr. Modi used a news conference in Washington to claim that there was no discrimination against anyone in India, including the country’s huge Muslim minority.Idrees Mohammed/EPA, via ShutterstockWhen Mr. Modi traveled to Australia last month, Prime Minister Anthony Albanese referred to him as “the boss” in front of an arena in Sydney packed with about 20,000 people. Mr. Modi then returned to New Delhi to a large crowd gathered for his welcome at 6 in the morning, telling supporters that the grand welcome for him abroad was about India, not him.On Friday, as Mr. Modi was wrapping up his meetings in the United States before arriving in Egypt for another grand greeting, his political party and the large sections of the broadcast media friendly to him reveled in the reception he had gotten from President Biden and other American leaders.The red carpet in Washington played perfectly into one of Mr. Modi’s talents: He can build a media campaign out of virtually anything, projecting himself as the only leader who can expand India’s economy and usher a nation coming into its own to new heights.While opposition leaders back home were holding their largest gathering yet, hoping to find a formula for uniting to challenge the prime minister in elections early next year, Mr. Modi was reaching for the world.Social media was flooded with montage videos, set to regal background music, of Mr. Modi making a grand entrance into the House of Representatives for his address to a joint session of Congress. The speech, after which several lawmakers sought Mr. Modi’s autograph, made him one of only a very small number of world leaders to have addressed that body twice.Another video online kept count of the number of times Mr. Modi received applause or standing ovations during his speech. A third cut to dramatic images of Mr. Modi contrasting him with the dynastic leaders who came before him, advancing a constant narrative that he represents a subversion of the old elite that long ruled India.“History tells us that powerful people come from powerful places. History was wrong,” a deep voice intones in the video. “Powerful people make places powerful.”Congress offers a standing ovation for Mr. Modi’s speech on Capitol Hill on Thursday.T.J. Kirkpatrick for The New York TimesMr. Modi’s next major opportunity to appear as a global statesman will come in September when India welcomes the Group of 20 leaders, a summit meeting he has framed to his support base as his bringing the world to India.His government has turned promotion for the meeting into a roadshow, hosting hundreds of G20 events, so many that foreign diplomats in New Delhi quietly complain about travel fatigue. Cities and towns across India are decked out with billboards bearing the G20 logo — which cleverly incorporates the lotus, a symbol both of India and his Bharatiya Janata Party — and pictures of Mr. Modi.In promoting the G20 presidency, Mr. Modi has taken to frequently describing India, the world’s most populous nation, as the “mother of democracy.” Abroad, however, he has pursued a transactional brand of diplomacy built not on practicing democratic values, but on what best serves Indian economic and security interests, and what elevates India in the world.The image of “a rising India, a new India being seen more seriously abroad” helps Mr. Modi politically, Mr. Malik said. But Mr. Modi is also investing heavily in U.S. relations with an eye toward how they could help an Indian economy that is struggling to create enough jobs for its huge young population and that must put up a fight against an aggressive China next door.“Addressing China is not just about soldiers and weapons at the border, it’s also about building economic alternatives to what China offers,” Mr. Malik said.Supporters of Mr. Modi’s Bharatiya Janata Party cheer during a rally in Bengaluru, India, last month.Manjunath Kiran/Agence France-Presse — Getty ImagesThe list of agreements between the United States and India, announced at the end of a bilateral meeting at the White House, was long, covering defense, space and a wide range of technological cooperation.Defense cooperation, in particular — including deals on Indian manufacturing of General Electric jet engines and purchasing Predator military drones — received a major boost after what had been a history of reluctance and bureaucratic hurdles on both sides. Dr. Tara Kartha, a former senior official in India’s security council who dealt with U.S. on defense, said the agreement on aircraft engines was “an affirmation of trust” that would help the military partnership beyond the smaller steps of the past two decades.“Each country is trying to get past its bureaucratic constrains,” she said. “Until the bureaucracy can catch up, there will be frustrations.”Among ordinary Indians on the streets of New Delhi, opinions of Mr. Modi’s diplomatic efforts were divided.Vijay Yadav, a 26-year-old taxi driver, said Mr. Modi’s outreach abroad could not cover for how India’s economy was struggling to create enough jobs.“I saw on Instagram a news feed which was constantly touting Mr. Modi’s trip to America as if no other Indian leader had been there before,” he said. “Firstly, he must get down to solving the problems of his own countrymen before he goes abroad to project himself as a hero.”Nidhi Garg, 41, who has inherited a vegetable and fruit shop from her father, said her heart swelled each time she saw Mr. Modi representing India abroad.“Today, wherever you see, the name of our nation is being taken,” she said. “The first thing that comes to anyone’s mind when they mention the word India, they immediately connect it to Prime Minister Modi.”Suhasini Raj More