Continued Price Decline in China and Divergence in Global Market Performance

China continued to witness deflation in consumer and producer prices during March,
raising concerns about the recovery of its economy amid ongoing trade pressures.
Meanwhile, TSMC recorded a strong surge in revenues, driven by advancements in artificial intelligence,
coinciding with renewed trade tensions between China and the United States following fiery remarks from Donald Trump.

Contents

China
TSMC
Trump

China

Consumer and Producer Prices in China Continue to Decline in March
Consumer prices in China continued to shrink for the second consecutive month in March,
amid concerns over falling exports and increased supply due to the trade war.
Official data released on Thursday showed that the Consumer Price Index (CPI) fell by 0.1% year-on-year,
following a 0.7% drop in February.
The core CPI — which excludes food and energy — rose by 0.5%, compared to a 0.1% contraction in February.
On a monthly basis, the index fell by 0.4% in March, after a 0.2% decrease in February, while expectations pointed to a 0.3% decline.
Similarly, the Producer Price Index (PPI) dropped by 2.5% year-on-year, compared to a 2.2% fall in the previous month.
Julian Evans-Pritchard, Senior China Economist at Capital Economics, commented on the data,
stating that deflationary pressures persist and may worsen if companies face greater difficulty in exporting their excess output.

TSMC

TSMC Reports Strong Revenue Growth Driven by AI Boom
It announced in a brief statement that its revenues rose by 42% in the first quarter of this year,
supported by a strong boom in the artificial intelligence sector.
The company, which is the world’s largest chip manufacturer by contract,
posted revenues of 839.3 billion New Taiwan dollars (approximately $25.6 billion) from January to March.
Although slightly below market expectations of 835.7 billion NT dollars,
The results aligned with the company’s previous guidance of between $25 and $25.8 billion.
TSMC — whose clients include Apple and Nvidia —
is expected to announce its full Q1 earnings report on April 17,
along with its outlook for the upcoming period.
The company remains one of the biggest beneficiaries of strong growth in the AI sector,
which has helped offset the decline in demand for chips used in consumer electronics.

Trump

China Wants a Trade Deal Amid Tariff Hike to 125%
U.S. President Donald Trump stated on Wednesday that he believes the U.S. will reach a trade deal with China,
despite criticizing Beijing’s retaliatory measures in response to American tariffs.
Speaking to reporters after his decision to suspend increased tariffs on most countries,
Trump said China wants to reach a deal but “doesn’t know how to act.”
He described Chinese President Xi Jinping as “a proud man,” adding that Beijing is starting to recognize the current reality.
Trump also labeled China “the greatest manipulator in history,” noting that it generated $1 trillion in trade with the U.S. last year.
His remarks came after announcing an increase in tariffs on China to 125%,
Just hours after raising them to 104%, in response to Beijing’s retaliatory actions.

Continued Price Decline in China and Divergence in Global Market

Continued Price Decline in China and Divergence in Global Market

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