Despite the significant uncertainty brought about by the current tariff issues, the industry still hopes to see more merger and acquisition transactions in fields such as orthopedics and interventional cardiology; major merger targets are expected to gradually shift towards publicly listed companies. Recently, the ranking of the top 100 global medical device companies was released. Based on the 2024 annual revenue, Medtronic ranked first with a revenue of $33 billion; Johnson & Johnson ranked second with a revenue of $30.4 billion; Abbott and Danaher followed closely with revenues of $27.9 billion and $24 billion, respectively. Other medical device companies in the top ten include Stryker, Siemens Healthineers, BD Medical, GE Healthcare, and Philips, all with revenues around $20 billion. In recent years, mergers and acquisitions in the medical device sector have driven the trend of "the strong getting stronger" among giant companies, benefiting from the ample cash flow of large enterprises. By acquiring and integrating a significant number of innovative technologies, medical device giants have further solidified their positions in certain specific fields. In 2024, Johnson & Johnson announced two major acquisitions, purchasing cardiovascular medical device company Shockwave for $13.1 billion and atrial shunt manufacturer V-Wave for $1.7 billion. Medtronic acquired Fortimedix Surgical, an innovative medical device company in the endoscopy field. BD Medical acquired the entire line of critical care products from Edwards Lifesciences for $4.2 billion in cash. Since 2025, the enthusiasm for mergers and acquisitions among major medical device companies has not waned. In January of this year, orthopedic giant Stryker announced its acquisition of venous thromboembolism (VTE) medical device company Inari Medical for a total cash consideration of $4.9 billion; Siemens Healthineers completed the acquisition of industrial simulation and analytics software provider Altair for $10 billion; Medtronic acquired part of the intellectual property used for the development of the next-generation PEEK intervertebral fusion devices from Nanovis, a nano-surface technology supplier; Medtronic also increased its investment in Contego Medical, a provider of blood revascularization therapy solutions. Despite the current tariff issues bringing significant uncertainty to the industry, there is still anticipation for more mergers and acquisitions. As the U.S. IPO market warms up, the motivation for private companies to be acquired may decrease, and the share prices of listed companies are far from reaching their peak. It is expected that major M&A targets will gradually shift towards listed companies in the future. Regarding the popular acquisition targets in the medical device industry, analysts believe that as more large medical device companies bet on the peripheral vascular market, leading companies in this field are worth paying attention to; surgical robots remain a hot sector that requires significant investment in research and development, and private companies urgently need the resources of large companies to survive; in addition, fields such as orthopedics and interventional cardiology will continue to be "strategic tracks." Johnson & Johnson expects to continue expanding its interventional cardiology product portfolio. Tim Schmid, the global chairman of Johnson & Johnson MedTech, stated last year that the company would triple its market size through acquisitions. Johnson & Johnson CEO Joaquin Duato has invested over $30 billion in mergers and acquisitions for the company's medical technology business within less than two years of taking office. In addition to the acquisition of Shockwave, Johnson & Johnson has also acquired artificial heart manufacturer Abiomed and heart implant developer Laminar in the past two years. Du Anqing previously stated that the company will continue to maintain its momentum in mergers and acquisitions, including small acquisitions and large deals, in order to achieve long-term growth. This is related to Johnson & Johnson's strong cash flow and balance sheet. Although the company mentioned in its recent quarterly financial report that its medical technology business might face a profit loss of $400 million in the fiscal year 2026 due to tariffs, industry insiders believe that Johnson & Johnson still has considerable flexibility to consider various types of transactions. "A company's abundant cash flow is the foundation for carrying out M&A transactions," Shen Yi, Danaher's Global Vice President and Head of Strategic Investment and M&A for the Asia-Pacific region, told the First Financial Daily. He also mentioned that Danaher's cash flow has exceeded the company's profits almost every quarter over the past decade. "In over 400 M&A transactions in its past history, Danaher has made all acquisitions except for one mega deal valued at $200 billion in cash, with 85% of its cash being used for acquisitions," said Shen Yi. Medtronic CEO Geoff Martha has indicated that the company will adopt a "top-down" precision strategy, focusing on small-scale acquisitions. Martha did not disclose specific targets, but he emphasized the importance of small acquisitions and portfolio management. Boston Scientific Corporation has also been quite active in mergers and acquisitions over the past year, benefiting from its relatively strong profit margins in recent years. Analysts predict that the company's PFA pulsed field ablation product, Farapulse, will drive continued profit growth in 2025. In 2024, Farapulse's annual revenue exceeded $1 billion.

Recently, Abbott released its Q1 2025 earnings report, with total revenue of $10.36 billion, a year-on-year increase of 4.0%. However, behind this seemingly steady report lie hidden concerns. The company's CEO, Robert Ford, warned investors during the earnings call that the U.S. government's additional tariffs on China would result in a loss of "hundreds of millions of dollars" for the company throughout the year, with the medical device business being the hardest hit. This statement confirms Barclays Bank's previous analysis - although Abbott is relatively less affected among top medical device companies, the field of medical devices still faces dual pressures of supply chain restructuring and rising costs.   01 leads the way, translates to "leads the way" or "takes the lead" in this context. Diagnostic services lag behind Abbott delivered a report card of "steady growth + improved profitability" in the first quarter of 2025. Total revenue: $10.36 billion, an increase of 4.0% year-over-year; excluding the COVID-19 testing business, organic growth was as high as 8.3%. Core Business Performance: Medical Devices: Revenue of $4.895 billion (accounting for 47% of total revenue), a year-over-year increase of 9.9%, with organic growth of 12.6%. Notable contributions from sub-segments such as Diabetes Management (+21.6%) and Structural Heart Disease. Nutrition business: Revenue of $2.146 billion, global organic growth driven by adult nutrition products Ensure® and Glucerna® by 8.7%. Diagnostic business: Revenue was $2.054 billion, a year-over-year decrease of 7.2%. Excluding COVID-19 testing revenue (which amounted to only $84 million), the core laboratory business barely achieved a 0.5% growth. Significant regional differentiation: The U.S. market grew by 8.4%, far exceeding the 1.2% growth of international markets. Particularly in the medical device sector, the growth rate in the U.S. (such as +27.1% for diabetes care business) was significantly higher than the global average. Profitability Optimization: Gross margin increased to 52.8%, and adjusted net profit grew by 10.9% year-over-year to reach $1.919 billion. This performance was driven by effective cost management and strong sales of high-margin products, such as the FreeStyle Libre® continuous glucose monitoring system.   02 Tariff Impact: Medical devices become a "disaster zone." Although Abbott's financial report performance is impressive, the "approaching tariff threat" it faces cannot be ignored, and Ford clearly outlined the specific impact pathway of this challenge. In the Sino-US tariff game, latest developments show that the Trump administration is planning to impose a 245% tariff on China, with medical devices not being exempted. Given that Abbott's revenues are about 45% reliant on the medical device sector, this means that its supply chain and export costs in the Chinese market will face significant pressure. At the same time, import restrictions implemented by Canada and Mexico, along with tariffs on steel and aluminum policies internationally that have created regional retaliatory tariffs, have further driven up the cost of raw materials. Due to the long production cycle of medical equipment and the fact that contract prices are often locked in, companies cannot resolve impacts in the short term by raising prices or transferring costs. From a potential risk perspective, if the tariff costs are entirely borne by the company, Abbott's medical device business, which currently has a gross margin of about 60%, may face the risk of decline; emerging markets such as Asia and Latin America, which rely on low-price strategies to open up markets, may also lose competitiveness due to rising costs.   03 5 Invest $500 million to build a factory in the U.S., what's the goal? To withstand the impact of the tariff storm, Abbott has unveiled two core strategies. Firstly, the construction of a distributed production network is carried out with 90 production bases to create an "anti-risk moat". CEO Ford uses FreeStyle Libre® as an example to explain the layout logic, stating that 2 factories in the United States serve domestic demand, and 4 other bases cover the global market. If all production capacity were concentrated in Southeast Asia or Europe, the risk would be uncontrollable. The strategy reduces reliance on a single supply chain through localized production, such as specializing in glucose monitoring sensors at the Irish factory and focusing on regional demand at the Chinese facility. Simultaneously, it implements redundancy by backing up critical components across multiple regions to ensure stable supply amid sudden tariffs or geopolitical conflicts. Secondly, to promote the expansion of production in the United States, Abbott announced two key investments, investing $500 million in the expansion of factories in Illinois and Texas, adding 300 new jobs, focusing on enhancing the research and development and production capacity of blood transfusion equipment. The main goal is to reduce dependence on imports through local production and strive for policy preferences brought by the "Made in USA" label. In the short term, this plan can reduce reliance on imported components and directly avoid cost pressures brought by Sino - US tariffs; in the long term, it focuses on the research and development and production of high - value - added products such as cardiovascular devices, consolidating its technological barriers and industry leadership in the high - end medical device field. However, the production cost in the United States is significantly higher than that in Asian regions, which may weaken the price competitiveness of products. Moreover, the construction cycle of the factory is relatively long, and it will not be put into operation until the end of 2025. In the short term, tariff pressure still needs to be borne. In terms of short-term buffer measures, Abbott opted to increase inventory of key raw materials, but Ford also warned that "hoarding is not a sustainable solution," while jointly lobbying with industry group AdvaMed to seek tariff exemptions for medical devices, despite slim chances of success.   04 No one was spared. Leading companies collectively under pressure Amid the ongoing impact of the tariff storm, leading companies in the global medical equipment sector are all affected, collectively bearing immense pressure. Johnson & Johnson (JNJ.US) warned in its financial report that by 2026, its tariff losses will reach $400 million, with the medical device division being hit the hardest. The main issues Johnson & Johnson faces are twofold: first, it is difficult to adjust the supply chain, as medical equipment transportation contracts have already locked in prices, making it hard to flexibly adjust costs in response to tariff changes in the short term; second, geopolitical risks are compounded, with Sino-American tariff conflicts being the primary source of losses, while retaliatory tariffs from Mexico and Canada add further pressure. In terms of strategy, Johnson & Johnson and Abbott show clear differences: Johnson & Johnson relies more on “acquisition + restructuring” to optimize its business (for example, by acquiring Abiomed to strengthen its cardiovascular sector), but it has relatively fewer proactive measures in response to tariff impacts; Abbott, on the other hand, places greater emphasis on enhancing the flexibility of its production network, reducing risks by diversifying its capacity layout. From an industry-wide perspective, this phenomenon conveys two important signals: for companies that struggle to pass on tariff costs to downstream entities, long-term profit margins may continue to erode; meanwhile, possessing a globalized supply chain layout and flexible adjustment capabilities is increasingly becoming a critical survival skill for leading enterprises to navigate geopolitical risks. In response to tariff shocks, Abbott has built a distributed network with 90 production bases, such as the decentralized production of FreeStyle Libre across 6 locations to reduce risks. At the same time, it has invested $500 million to expand its domestic U.S. factories, attempting to hedge tariffs through local production. However, high domestic costs and long construction cycles still put pressure on it in the short term. Within the industry, Chinese companies like Mindray are capturing market share with their local supply chains, accelerating the restructuring of the global medical device supply chain. As Ford said, tariffs are driving the medical industry towards Globalization 2.0, and companies need to find a new balance between technological barriers and cost control.

In April 2025, two of the world's leading medical device giants, Johnson & Johnson and Abbott, announced their financial reports for the first quarter. Although both companies revealed the impact of tariffs on their finances in the reports, they still maintained growth and demonstrated different coping strategies. The performance of these companies not only reflects the complexity of the global medical device industry but also shows the adaptability of multinational companies in the face of external pressures such as the China-U.S. trade war.   01 Johnson & Johnson: Steady Growth Tariff pressure resulted in a loss of 400 million dollars. Johnson & Johnson's Q1 2025 earnings report shows the company's total revenue reached $21.9 billion, a year-over-year increase of 2.4%. The performance of the medical technology division was particularly impressive, with revenue reaching $8.02 billion, a year-over-year increase of 2.5%. Among this, the cardiovascular business stood out, with sales reaching $2.1 billion, a year-over-year increase of 16.5%. However, despite the strong performance, Johnson & Johnson still faces significant tariff challenges and is expected to suffer a financial loss of $400 million in 2025 as a result.   Joseph Wolk, Chief Financial Officer of Johnson & Johnson, stated that this loss was mainly due to the high tariffs imposed by the U.S. on Chinese medical device exports and China's retaliatory tariffs on American products. Johnson & Johnson is mitigating this impact through price adjustments and cost pass-throughs, but the adjustment space is limited due to existing medical device contracts. Nevertheless, Johnson & Johnson has maintained its financial outlook for 2025 and plans to reduce future tariff impacts by restructuring its operations and optimizing production bases.   02 Abbott: Global Layout and Short-term Response Strategies Similar to Johnson & Johnson, Abbott also announced impressive financial results in the first quarter of 2025. The company's overall revenue was $10.36 billion, a year-on-year increase of 4%. Medical device sales were $4.9 billion, a year-on-year increase of 9.9%. Nevertheless, Abbott's CEO, Robert Ford, clearly stated in the earnings call that he expects tariffs to have a "hundreds of millions of dollars" negative impact on the company, mainly in the U.S. and Chinese markets. Ford further pointed out that Abbott's estimated tariff costs are about $300 million, close to Johnson & Johnson's estimated $400 million. Unlike Johnson & Johnson, Abbott has adopted a more proactive regional production layout and short-term relief plans. The company announced it will invest $500 million in Illinois and Texas to expand its manufacturing and R&D base for blood and plasma screening equipment. This investment not only helps Abbott diversify risks and mitigate the impact of tariffs on production, but also demonstrates the company's balanced approach between globalization and localization.   03 Tariff Impact: Global Medical Devices Challenges and Opportunities in the Industry As Sino-US trade friction intensifies, the global medical device industry is facing unprecedented challenges. The tariffs imposed by the United States on Chinese medical devices, particularly in high-end equipment such as CT and MRI imaging devices, have led to a significant increase in procurement costs. Additionally, tariffs on key components such as CT tubes and superconducting magnets have put considerable pressure on companies with high import reliance. For Chinese medical device companies that rely on the US market, tariffs have exacerbated their market challenges. Meanwhile, domestic medical device companies see an opportunity to catch up. Companies like Mindray and United Imaging have increased their R&D investments, driving technological innovation, and have gradually replaced some of the high-end equipment market share. For international giants, maintaining competitiveness, reducing costs, will be the core tasks in the coming years amid this global trade war.   04 Coping Strategy: Dual Layout of Globalization and Localization Facing tariff pressure, Johnson & Johnson and Abbott have adopted different but complementary strategies. Johnson & Johnson focuses on mitigating the rise in costs through price adjustments, optimizing production bases, and business restructuring, maintaining competitiveness in the global market. Abbott, on the other hand, has strengthened the global supply chain's risk resistance through a distributed production network and regional layout. The company has not only increased investment in the United States but also actively promoted the expansion of global production bases to cope with long-term tariff policy changes. Moreover, both Johnson & Johnson and Abbott are actively cooperating with industry organizations to seek tariff exemptions, but they remain cautious about the likelihood of success. Both companies have stated that once tariffs are implemented, they are difficult to retract. This historical experience has prompted them to place greater emphasis on adjusting their long-term strategies.   05 Conclusion: Globalization Challenges and Opportunities for Multinational Enterprises Overall, Johnson & Johnson and Abbott achieved steady growth in their Q1 financial reports despite the impact of tariffs. Through different coping strategies, the two giants demonstrated how they adjusted their strategies in the complex environment of globalization and localization to mitigate the negative effects of tariffs. Although tariff pressure poses challenges for global medical device companies in the short term, it also creates new opportunities for localized production, technological innovation, and supply chain optimization. As the China-US trade friction continues to develop, multinational companies will have to constantly adjust their strategies to maintain a competitive edge in the global market. For domestic companies, this is a good opportunity to accelerate innovation and promote domestic alternatives.

Global energy and chemical industry market information service agencies recently stated that American chemical companies are facing profit contraction due to fluctuations in oil and natural gas prices, while also dealing with issues related to tariffs and economic uncertainty. Analyst Koze Olko stated that the key driving factor behind the rise in U.S. gas prices is the surge in liquefied natural gas (LNG) demand from Europe and the Asia-Pacific region. Due to the strong growth in electricity demand from data centers, U.S. natural gas supply may tighten further. In contrast, oil demand is expected to decline due to accelerated supply growth from non-OPEC producers such as the U.S., Brazil, and Guyana, the rapid adoption of electric vehicles, and a slowdown in economic growth, which may lead to a drop in oil prices. It is estimated that the average price of Brent crude oil will drop by 6.7% in 2025 and by another 7.4% in 2026; the average price of WTI will also drop by 6.7% in 2025 and by another 7.9% in 2026. The cost of chemical raw materials in the United States, especially ethane, will fluctuate with the rise and fall of gas prices. It is estimated that the average price of natural gas in the United States will increase by 66.8% in 2025 and by another 3.9% in 2026. The trends of both will inevitably squeeze the profit margins of U.S. ethylene producers. However, the demand for ethylene is declining. Tariffs have increased the import costs of raw materials used to make catalysts and plastic additives, and the EU and Canada may impose retaliatory tariffs on polyethylene exported from the United States. Peter Huntsman, CEO of U.S. chemical producer Huntsman Corporation, expects that the rebound in the U.S. real estate market may be delayed due to uncertainties over tariffs and mortgage interest rates, and the demand for ethylene from the construction industry will continue to be weak, further exacerbating the instability in the ethylene market.

Introduction: The deepening game of tariffs between China and the US, how does the "tariff war" affect the import volume of EVA from the United States and the photovoltaic industry closely related to EVA? On April 2, local time, U.S. President Trump signed two executive orders at the White House regarding the so-called "reciprocal tariffs," announcing a 10% "minimum baseline tariff" on trade partners. Additionally, Trump will impose personalized higher "reciprocal tariffs" on countries with the largest trade deficits with the U.S., with a 34% reciprocal tariff specifically on China. On April 4, China announced a 34% tariff on all goods imported from the U.S. The tariff policy game between China and the U.S. continues to deepen. What impact will the "tariff war" have on the import volume of EVA from the U.S. and the photovoltaic industry closely related to EVA? 1. The import pattern of EVA changes under the pressure of tariffs. Data source: General Administration of Customs In 2024, the total import volume of EVA was 915,900 tons, down 34.21% year-on-year, hitting a five-year low. China has multiple trade partners for EVA imports, with the United States ranking fifth, accounting for 5.97% of imports. After the imposition of additional tariffs, the cost of importing EVA from the United States has increased significantly, and trade barriers have been significantly upgraded. Under the dual pressures of cost and policy, it is expected that the import volume of EVA from the United States will decrease. This change brings opportunities for China's EVA production enterprises, and the market share of domestic EVA products will further increase. II. "Reciprocal Tariffs" Put Pressure on Photovoltaic Industry From the table above, it can be seen that the United States has imposed "reciprocal tariffs" of 32%, 36%, 46%, and 49% on products from trade partners such as Indonesia, Thailand, Vietnam, and Cambodia. This policy continues the United States' long-standing resistance to Chinese photovoltaics and includes the main photovoltaic manufacturing countries in Southeast Asia under high tariffs. According to data from the U.S. Energy Information Administration (EIA), the total import volume of photovoltaic components in the United States in 2024 is 48.7GW, with Southeast Asia's share dropping to 65%, and China's direct export share rebounding to 12% (about 5.8GW), but the scale of Chinese enterprises transferring through third countries such as Mexico and Turkey reaches 8.3GW, accounting for 17% of U.S. imports. The highest proportion of photovoltaic component imports in the United States is still in Southeast Asia, however, 80% of Southeast Asia's photovoltaic capacity is invested and constructed by Chinese enterprises. EVA, as an important upstream raw material for photovoltaic components, the impact of tariffs on photovoltaic components will indirectly affect EVA products. U.S. "reciprocal tariffs" have taken effect, causing a surge in the cost of imported photovoltaic modules. This has suppressed domestic photovoltaic installation demand in the U.S., leading to a decline in imports from Southeast Asia. At the same time, the capacity of Chinese companies in Southeast Asia has been impacted, and the volume of photovoltaic products transshipped through third countries to the U.S. may be affected. The challenges faced by China's photovoltaic industry in the U.S. market have intensified. Despite the uncertainty in the Sino-US tariff game, the trend of global energy transition towards clean and low-carbon remains unchanged. As long as China's EVA and photovoltaic industries adhere to innovation-driven and open cooperation, they can turn challenges into opportunities in the global energy transformation, achieve high-quality and sustainable development, and contribute Chinese strength to the global clean energy cause.

While the Trump administration was wielding the tariff baton, American toy giants were not only diversifying their production bases but also quietly launching a "cost revolution"! The "American Girl" dolls from Mattel's American Girl brand are on display at the American Girl Place in Manhattan, New York. The Trump administration escalated the trade war: imposing a 10% base tariff on almost all countries and adding heavy taxes on dozens of countries including China and Vietnam. As the two pillars of U.S. toy imports, Chinese products face a 54% overall tax rate (with an additional 34%), while Vietnamese toys are hit with a 46% tariff. According to the U.S. Toy Association, 77% of imported toys in the U.S. come from China, with Vietnam following Mexico in third place. Industry experts warn that tax rates far exceeding expectations will lead to a surge in toy prices, with the initial impact likely coinciding with the back-to-school season this fall. "The entire industry is in chaos," said Greg Ahearn, president of the Toy Association. "This will have a huge negative impact on both consumers and the industry." The Dilemma of Enterprises in Supply Chain Earthquakes Toy giants Hasbro and Mattel had predicted in 2025 that the impact of a 20% tariff on China would be included in their plans to shift production to Vietnam, Indonesia, and India. However, the new tariff policy has resulted in rates of 46%, 32%, and 26% for these three countries, respectively. Eric Handler, an analyst at Roth Capital, pointed out: "The transfer of production has lost financial feasibility, and consumers will soon see price increases." "Hey Buddy Hey Pal" company's "Magic Egg Decorator" relies on the Asian supply chain. However, in reality, China announced on Friday that it will impose a 34% retaliatory tariff on the US, exacerbating trade tensions. The capital market "votes with its feet" in advance. The tariff shockwave has swept through Wall Street: Mattel's stock plummeted 16.5% on Thursday, Hasbro dropped 12%, and Funko plunged 18%. Analysts predict that toy giants releasing quarterly reports this month may lower their profit guidance. This tariff storm is reshaping the global toy industry landscape. After Mattel and Hasbro transferred part of their production capacity to Vietnam in two years, production in China has significantly decreased, while new factories in Vietnam hesitate due to tariffs. US toy giant's strategy of diversifying manufacturing locations Mattel has also been diversifying its manufacturing operations away from China, currently sourcing products from seven countries. China accounts for about 40% of its procurement volume, down from the previous 50%. Due to the United States accounting for about half of the global toy sales, China's tariff risks are about 20% of the global cost of goods sold. UBS says this means that according to a 10% China tariff, Mattel's gross margin will be affected by 100 basis points, equivalent to about 12 cents per share. Mattel said that by 2027, the output of any country will not exceed 25% of its total output. Hasbro has been expanding its manufacturing operations to countries like Vietnam and India to reduce its dependence on China. The company's management has indicated that Indonesia may be the next stop. Hasbro, headquartered in Pawtucket, Rhode Island, currently sources products from eight countries, with China accounting for 50%, down from the previous 60%. The company aims to reduce this proportion to 40% by 2026. In comparison, the average for the entire toy industry is 80% to 85% of revenue coming from China. Mexico also imposes tariffs on certain goods, representing 2% of Hasbro's production. The company does not source any products from Canada. Reduce manufacturing costs Despite efforts by companies to reduce costs through renegotiating supplier contracts and simplifying packaging (such as Basic Fun’s release of trayless packages), Basic Fun********: "The 54% tariff could lead to a direct price increase of 50% at the consumer level, especially for toy products with single-digit profit margins. Cost passthrough is inevitable." Behind the hustle and bustle of the New York Toy Fair, buyers are frantically seeking alternatives. An unnamed Guangdong OEM factory manager revealed: "Walmart has asked us to reduce the thickness of plastic parts by 0.2 millimeters, but this can only offset 3% of the cost." Battery-free electronics, minimalist packaging toys, self-assembled daily necessities... These seemingly regressive consumer trends are actually the wisdom of businesses surviving in the global trade war. In the workshop of Abacus Brands, a Los Angeles-based educational toy company, CEO Steve Rad is showcasing a new matte packaging box: replacing the 30-cent plastic liner with a cardboard that costs only 7 cents. "Saving 3-4 cents at each spot can accumulate to offset the $10 increase in retail price," the company also plans to reduce the thickness of the paper used in the instruction manual, and expects to complete the supply chain adjustments this fall. Steve Rad, who designs science kits and other educational toys for older kids, is showcasing a newly improved matte box (left), which will replace its black molded plastic packaging with an improved cardboard material to help offset the cost of future tariffs. The plush toy giant Aurora World has tapped into the color economy. "Reducing the number of paint colors not only cuts material costs but also simplifies the labor process," admitted Gabriel Horikawa, general manager of the toy division. While these changes may not fully offset the impact of tariffs, they serve as a necessary buffer. Aurora was founded in Korea in the 1980s, and by going green, it has saved more than 3 million pounds of recycled plastic. Packaging Slimming: A Win-Win for Environmental Protection and Cost The classic toy brand Basic Fun has designed three packaging options for Tonka trucks: a traditional box with a display window, a tray without a box, and a minimalist paper price tag. The latter two options can save costs of $1.25 and $1.75 respectively, but CEO Jay Foreman admits, "This will reduce the product's appeal and is far from offsetting the tariffs on goods from China." The Art of Survival in the Fog of Policy Michael Matthias, CFO of American Eagle Outfitters, revealed that the company plans to reduce the production capacity ratio in China and Vietnam from 15%-20% each to single digits. CEO Jay Schottenstein admitted, "We faced similar challenges eight years ago, and we must remain flexible— you never know where the next round of tariffs will be aimed." Facing policy uncertainty, Peter Baum of Baum Essex in New York lamented, "This is the beginning of a global depression. An 80-year-old business run by five generations could be ruined." The company, which relocated its production capacity from China in 2019, is now facing another****in several Southeast Asian countries. In this trade war without gunpowder, enterprises are adopting meticulous "subtraction strategies" to find a niche in the tariff storm. When innovation becomes a forced choice, the evolution of consumption patterns may reshape the commercial landscape in the post-tariff era.

China's countermeasures are here! Today, in response to the US government's announcement of imposing "reciprocal tariffs" on Chinese goods imported to the US, China has issued countermeasures. The State Council's Tariff Commission announced that all imports originating from the United States will have an additional 34% tariff imposed on the current applicable tariff rates. In addition, the Ministry of Commerce and the General Administration of Customs have taken six coordinated actions, including adding 16 US entities to the export control management list, implementing export controls on medium and heavy rare earth items, suspending the import qualification of products from six US companies, adding 11 US companies to the unreliable entity list, initiating an investigation into the competitiveness of the import of medical CT tubes, and filing a lawsuit against the US "reciprocal tariffs" at the World Trade Organization. Impose an additional 34% tariff on all imported goods originating from the United States on top of the currently applicable tariff rates. On April 2, 2025, the US government announced that it would impose "reciprocal tariffs" on Chinese goods exported to the US. The US approach does not conform to international trade rules, seriously damages China's legitimate rights and interests, and is a typical unilateral bullying practice. In accordance with the Customs Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China, and other laws and regulations, as well as the basic principles of international law, with the approval of the State Council, the Tariff Committee of the State Council has decided to impose additional tariffs on imported goods originating from the United States starting from 12:01 a.m. on April 10, 2025. The relevant matters are as follows: 1. An additional 34% tariff will be imposed on all imported goods originating from the United States, based on the current applicable tariff rates. The current bonded and tax reduction/exemption policies remain unchanged, and the tariffs imposed this time will not be reduced or exempted. Goods that have been shipped from the place of departure before April 10, 2025, at 12:01 PM and imported between April 10, 2025, at 12:01 PM and May 13, 2025, at 11:59 PM will not be subject to the additional tariffs imposed by this announcement. Export controls on certain medium and heavy rare earth-related items Ministry of Commerce and General Administration of Customs Announcement No. 18 of 2025, announcing the decision to implement export controls on some medium and heavy rare earth-related items. A spokesperson for the Ministry of Commerce answered questions from journalists about the implementation of export controls on medium and heavy rare earth-related items, stating that in accordance with the "Export Control Law of the People's Republic of China" and other relevant laws and regulations, on April 4, the Ministry of Commerce, together with the General Administration of Customs, issued an announcement on the implementation of export control measures for 7 categories of medium and heavy rare earth-related items such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, which will be formally implemented from the date of publication.   The Ministry of Commerce has added Scideate Company and 11 other U.S. companies to the unreliable entity list. The Ministry of Commerce today (4th) announced the inclusion of 11 American companies, including Skydio, in the unreliable entity list work mechanism. In order to safeguard national sovereignty, security, and development interests, and in accordance with relevant laws such as the "Foreign Trade Law of the People's Republic of China," the "National Security Law of the People's Republic of China," and the "Anti-Foreign Sanctions Law of the People's Republic of China," the unreliable entity list work mechanism, based on Article 2, Article 8, and Article 10 of the "Regulations on Unreliable Entity List," has decided to include Skydio and other 10 entities in the unreliable entity list and implement the following measures: I. Prohibition of the aforementioned enterprises from engaging in import and export activities related to China; 2. Prohibit the aforementioned enterprises from making new investments within China. Any matters not addressed in this announcement shall be carried out in accordance with the provisions of the Unreliable Entity List. This announcement will be implemented from the date of publication. The 11 U.S. entities listed on the Unreliable Entity List 1. Skydio Inc. BRINC Drones, Inc. Red Six Solutions Company Senix Company (SYNEXXUS, Inc.) 5. Firestorm Labs, Inc. 6. Kratos Unmanned Aerial Systems, Inc. 7. Havoc Artificial Intelligence Company (HavocAI) 8. Neros Technologies 9. Domo Tactical Communications 10. Rapid Flight LLC 11. Insitu, Inc. General Administration of Customs: Suspends the export qualifications of six U.S. companies involved in the incident to China The General Administration of Customs today issued announcements No. 54 and No. 55, deciding to suspend the import qualification of sorghum from one U.S. related company, the import qualification of poultry meat and bone meal from three U.S. related companies, and the import qualification of poultry meat products from two U.S. related companies, in order to protect the health of Chinese consumers and ensure the safety of China's livestock production due to the inspection and quarantine issues of the related imported products. The Ministry of Commerce: 16 American entities are included in the export control management list. In order to safeguard national security and interests, and fulfill international obligations such as non-proliferation, according to the relevant provisions of the "Export Control Law of the People's Republic of China" and the "Regulations on the Export Control of Dual-Use Items and Technologies" and other laws and regulations, the Ministry of Commerce has announced a decision to include 16 American entities in the export control management list, prohibiting the export of dual-use items to them. These entities may engage in actions that endanger China's national security and interests, and no exporter may violate the above regulations. Ministry of Commerce Spokesperson's Response to Media Inquiry on the Initiation of an Industrial Competitiveness Investigation into Imported Medical CT Tubes Commerce Ministry spokesperson answers journalists' questions on industrial competitiveness investigation into imported medical CT tubes. A reporter asked: We have noticed that the Ministry of Commerce website issued an announcement to initiate an industrial competitiveness investigation on imported medical CT tube assemblies. Could you provide some information on the relevant situation? Answer: This investigation was the first industrial competitiveness investigation initiated by the Ministry of Commerce in response to an application from the domestic industry. According to Article 36 of the "Foreign Trade Law of the People's Republic of China," the Ministry of Commerce may conduct investigations into the impact of imports on the domestic industry and its competitiveness. The preliminary evidence submitted by the applicant shows that the Chinese medical CT tube industry started relatively late and is in the development stage. The domestic industry faces difficulties in operations due to the impact of imported products, and its competitiveness is adversely affected. Based on this, the applicant requests the Ministry of Commerce to investigate the impact of imports on the domestic industry and its competitiveness. I would like to emphasize that the industrial competitiveness survey is a factual investigation. This survey is not aimed at specific countries and regions, and it does not affect normal trade. The investigating authority will fully protect the rights of all interested parties and conduct the investigation objectively and fairly according to the law.

On the afternoon of April 2, local time, President Trump of the United States signed two executive orders on the so-called "reciprocal tariffs" at the White House, announcing the establishment of a "minimum benchmark tariff" of 10% for all trade partners, and at the same time, higher tariffs are imposed on dozens of other countries and regions, including China, on the basis of 10%. Among them, the "reciprocal tariff" rate imposed by the United States on China is 34% - the overlapping rate will rise to 54%. The toy industry is facing yet another major challenge. According to reports from the White House website and U.S. media such as The New York Times, this is the largest-scale new tariff policy announced by Trump since taking office in January this year, wielding the tariff stick against the world, including allies, under the guise of "preventing other countries from exploiting the United States." According to the new policy announced by Trump, China's "reciprocal tariff" rate will be 34%, Vietnam's tariff will be as high as 46%, Thailand's tariff will be 36%, Indonesia's tariff will be 32%, India's tariff will be 26%, Japan's tariff will be 24%, South Korea's tariff will be 25%, and the EU countries' tariffs will rise to 20%. According to U.S. media reports, 34% of the reciprocal tariffs on China will be added to the original 20% U.S. tariffs on China, resulting in a total tariff rate of 54% on imports from China. This rate is expected to take effect on April 9. Additionally, the White House announced that starting from May 2, it will terminate the duty-free treatment for small packages (valued at $800 or less) imported from mainland China and Hong Kong, effectively removing the de minimis threshold. Trump's advisers insist that tariffs will bring vital strategic manufacturing capabilities back to the US. However, economists warn that tariffs could slow the global economy, increase the risk of recession, and add thousands of dollars to the cost of living for ordinary American families. If the new tariff policy is implemented, it will be another major challenge for the toy industry. Previously, Hasbro CEO Chris Cocks said in an interview with the media that a 10% tariff could be negotiated and absorbed internally, but a 20% tariff would be unbearable and would definitely be passed on to consumers. It is expected that the toy industry may see a wave of price increases in a few months. Overseas media also believe that the impact of the tariff increase on toy prices will start to become apparent this fall. Recently, a total of 19 toy industry associations from North America, Europe, Asia, and South America signed a joint statement calling for the exclusion of toys from tariff policy formulation and negotiations by the United States and its trading partners. The Vietnamese stock market plummeted threatened with a 46% increase in tariffs. To reduce dependence on Chinese manufacturing, several major toy manufacturers have already adjusted their supply chains in recent years, relocating some production capacity to Southeast Asian countries such as Vietnam and Malaysia. Trump's announcement of the so-called "reciprocal tariff" executive order imposes a tariff rate as high as 46% on Vietnam, significantly higher than that on other countries. After the market opened on Thursday, the Vietnamese stock market fell across the board. Economist and former vice president of the Vietnam Institute for Economic Management, Vo Tri Thanh, stated that tariffs are a shock to the global economy and to Vietnam, and that Vietnam will experience significant negative impacts. The United States has consistently been Vietnam's largest export market. In 2024, Vietnam's exports to the U.S. reached $142 billion, accounting for 30% of Vietnam's GDP. However, for Trump, Vietnam's trade surplus with the U.S. exceeding $123 billion in 2024 represents "a tremendous trade unfairness." Sports brand Nike has about half of its shoe products and 28% of its clothing produced in Vietnam, while its competitor Adidas relies on Vietnamese factories for 39% of its shoes and 18% of its clothing. According to calculations, the average tariff rate for Vietnamese shoe products in the United States was previously 13.6%, and the clothing product rate was 18.8%. According to the latest tax rate announced by Trump, Nike and Adidas's products from Vietnamese factories will need to pay more than three times the tariff when entering the United States. At the same time, some toy manufacturers also rely on Vietnam. Several American companies, such as Hasbro and Mattel, collaborate with the Southeast Asian toy manufacturer GFT to import and sell toys produced by the company. GFT has five production factories in northern Vietnam and employs over 15,000 workers.

On April 3 local time, Canada's new Prime Minister Carney announced that the Canadian government will follow the U.S. approach and impose a 25% tariff on all U.S. imported cars not covered by the USMCA (United States-Mexico-Canada Agreement). At the same time, trade and economic tensions between Europe and the United States are escalating rapidly. On April 3rd Eastern Daylight Time, French President Emmanuel Macron publicly called on French companies to suspend investments in the US and urged the EU to adopt a tough stance in response. French government spokesperson Sophie Primas stated that France is pushing the EU to retaliate against US tech companies and is expanding countermeasures to include the service sector. In addition, the WTO issued a statement on US tariff policies, indicating that these policies are expected to have a significant impact on global trade and economic growth prospects. Preliminary analysis suggests that these policies, combined with measures implemented since the beginning of this year, could lead to a decline of about 1% in global merchandise trade volumes this year,****************compared to previous forecasts. Announce countermeasures On April 3 local time, Canada's new Prime Minister Carney announced a series of countermeasures against U.S. tariffs, while calling Trump's protectionist moves a tragedy for global trade. At a press conference held in Ottawa, Carney announced that the Canadian government will follow the U.S. practice of imposing a 25% tariff on all U.S. imported cars that are not included in the USMCA (United States-Mexico-Canada Agreement), but auto parts will not be affected, nor will it impact cars coming from Mexico. "Considering the potential harm of tariffs to the American people, the U.S. government should ultimately change course. But I do not want to give people false hope." He added that it may take a long time for the U.S. to change its attitude. Carney also said that the previously announced tariff measures will remain unchanged. Canada has previously announced that it would impose a 25% retaliatory tariff on US goods worth about 155 billion Canadian dollars (approximately 110 billion US dollars). Carney said, "We were forced to take these measures, and the way we did it was targeted, aiming to have the greatest impact on the U.S. economy while minimizing the impact on Canada." Carney claims that over the past 80 years, the United States has played a significant role in the international economic system, promoting free trade and globalization, and helping to establish an open international economic order. However, all of this has now come to an end, which is a tragedy. Carney stated that Trump's tariff policy is an attempt to reconstruct the international trade system. All of Canada's countermeasures are aimed at protecting its domestic industrial workers. He revealed that due to U.S. tariffs, thousands of workers have already lost their jobs. Automobiles are Canada's second-largest export product, directly employing 125,000 Canadians and providing jobs for nearly 500,000 more in related industries. Although Carney stated that Canada still considers the United States an ally in defense and security, Canada will seek more reliable trading partners to reduce its dependence on the U.S. and protect its economic sovereignty. He spoke with German Chancellor Scholz that morning and claimed to agree to strengthen the diversified trade relationship between the two countries. "When we are facing the crisis caused by Trump's tariffs, reliable trade partners are more important than ever." Schuolz then said: "The EU is the world's largest single market, therefore, we have a complete opportunity to respond in a united and decisive manner, the EU has its own policies and means to deal with trade disputes." Europe's moves At the same time, Europe is also brewing countermeasures. On April 3rd, Eastern Time, French President Macron publicly called on domestic companies to suspend investments in the US and urged the EU to deal with the situation with tough measures until the US-Europe trade policy becomes clearer. A series of signs indicate that trade and economic tensions between Europe and the United States are escalating rapidly. During his meeting with French business representatives, Macron said: "Some companies that originally planned to invest in the United States should pause their projects until the U.S. tariff policy becomes clearer." He pointed out that while the United States is imposing additional tariffs on Europe, European companies continue to invest in the United States, sending a "contradictory signal." He emphasized that European countries should unite to confront the United States' tariff policy, rather than acting unilaterally. Macron stated that he would not rule out retaliatory measures against US tariffs, and France's response to US tariffs would be "larger in scale" than the previous retaliation against US steel and aluminum tariffs. He stated that if Europeans unite in response, they will be able to successfully dismantle US tariff policies. "We are fully prepared to counter US tariffs, and we are not ruling out the use of the EU's anti-coercion instrument against the US. All tools to counter US tariffs are under consideration, such as strengthening regulations on US digital service companies." Earlier on Thursday, Sophie Primas, a spokesperson for the French government, said that France is pushing for the EU to retaliate against US tech companies and is expanding countermeasures to include the services sector. On the same day, German Vice Chancellor and Minister of Economics Robert Habeck said that if Europe could unite, US President Trump would "yield to pressure" and adjust his tariff policy. The outgoing German Chancellor Scholz also said that he believes Trump's latest tariff decision is "fundamentally wrong." He stated that these measures are an attack on the global trade order, and these "ill-considered decisions" will harm the global economy. The U.S. government is on a path that "will only make everyone losers." According to the latest reports, informed sources have revealed that EU regulatory authorities are preparing to impose significant penalties on Musk's social media platform X for violations of the EU's Digital Services Act (DSA). The penalties will include fines and demands for product changes, with the fine amount potentially exceeding $1 billion. WTO Warns On April 3rd local time, the World Trade Organization (WTO) issued a statement regarding the United States' tariff policy. The WTO Secretariat stated that it is closely monitoring and analyzing the tariff policy issued by the United States, and answering questions from WTO members about the potential impact of these policies on their economies and the global trade system. The WTO expects the U.S. tariff policy to have a significant impact on global trade and economic growth prospects. The statement says that, according to the World Trade Organization's preliminary estimates, the tariff measures introduced by the United States since the beginning of this year may lead to a contraction of global merchandise trade volume by about 1% by 2025, which is nearly 4 percentage points lower than previous forecasts. The Director-General of the World Trade Organization, Okonjo-Iweala, said on the 3rd that the United States' imposition of tariffs will have a huge impact on the prospects for global trade and economic growth. Iweala expressed deep concern over the magnitude of trade contraction and the potential for a tariff war triggered by retaliatory measures, emphasizing that the vast majority of global trade still follows the Most Favored Nation treatment terms of the WTO. She called on WTO members to unite and prevent further escalation of trade tensions.

AURELIUS Private Equity Mid-Market Buyout announced the acquisition of Teijin Automotive Technologies North America ('TAT-NA'). TAT-NA is one of the leaders in advanced composite materials technology for the automotive, heavy truck, marine, and recreational vehicle sectors, under its ultimate parent company, Teijin Limited. This acquisition is the first deal advised by AURELIUS' New York investment consulting team just a few months after opening its North American market office. Producing advanced composite materials components for automobiles TAT-NA is headquartered in Auburn Hills, Michigan, with approximately 4,500 employees and annual revenues exceeding $1 billion. The company has 14 branches in the United States and Mexico, specializing in the development and production of advanced composite parts for the global automotive and transportation industries. TAT-NA's vertically integrated operational model and market-leading scale provide reliable assets and capabilities to maintain long-term supply relationships with major OEMs in North America.AURELIUS will provide new growth opportunities for the standalone TAT-NA business, whose unique, durable lightweight composite products are independent of the powertrain and thus well-suited to meet the long-term demand for Class A and structural vehicle components."Teijin Automotive Technologies North America has a long history of supplying major players in the North American automotive industry. We are particularly proud of this acquisition, as it is the first deal advised by our recently opened New York office. Our operations consulting team's experts will focus on providing a range of value creation plans across the entire production base network, while driving operational excellence through improved quality and efficiency," said Stephan Mayerhausen, Managing Director of AURELIUS Investment Advisory and head of AURELIUS's New York office."When we look to the future with the resources and support of the AURELIUS team, we are excited about the opportunities," said TAT-NA CEO Chris Twining. "The AURELIUS Operations Consulting team is committed to ensuring we remain at the forefront of the market, and I look forward to working with them to continue developing new material technologies while improving our operations, efficiency, and quality."AURELIUS is advised by Mizuho’s M&A team, Baker McKenzie (legal), EY (financial and tax), AON (insurance), and Ramboll (environmental).

International News Digest:Raw Material News - Shell Completes Sale of Refining and Chemical Assets in SingaporeKorean KG Mobility Teams Up with Chery Automobile to Develop Mid-to-Large-Sized SUVPackaging News - 9 million tons of plastic pressure, Vietnam's 870 trillion beverage market faces green packaging transformation!Exhibition Highlights - The RePlast Eurasia Expo will be held in Turkey in May, gathering pioneering forces in the plastic recycling industry.Equipment News - Swiss Auto Injector Manufacturer Invests $220 Million to Build Factory, Entering the U.S. Auto Injection Equipment MarketMarket News - Brazilian Congress Plans to Draft Legislation to Counter Unilateral Trade ActionsMarket Price News - Ethylene Asia: CFR Northeast Asia $855/ton; CFR Southeast Asia $920/ton Here is the translated content:The following is an overview of international news:Shell completes sale of Singapore refining and petrochemical assetsOn April 1, Shell announced that it had completed the sale of its Singapore Energy and Chemicals Park to a joint venture formed by Glencore and Indonesian chemical manufacturer PT Chandra Asri Pacific. Specific financial details were not disclosed. Shell announced the transaction on May 8, 2024. The Singapore Energy and Chemicals Park includes refining and chemical assets located on Pulau Bukom and Jurong Island. The assets on Pulau Bukom include a refinery with a capacity of 237,000 barrels per day, which was established in 1961, and an ethylene cracker with an annual capacity of 1.1 million tons.2. BASF Launches New High-Temperature Nylon Product!Recently, BASF has further expanded its Ultramid® Advanced T1000 series products for durable components requiring special thermal management. This product series is developed based on polyamide 6T/6I resins, and the latest additions include optimized products with high hydrolysis resistance (HR) and high purity (EQ, or electronic grade). The newly developed HR and EQ grades exhibit excellent high strength and high rigidity at elevated temperatures, while also demonstrating outstanding creep resistance and good compatibility with coolants. Their overall performance significantly surpasses that of standard polyamide grades and many other PPA products available on the market.3. In May, the RePlast Eurasia Exhibition will land in Turkey, bringing together pioneering forces in the plastic recycling industry.RePlast Eurasia, as Turkey's first and only exhibition focused on the plastic recycling industry, holds a unique position in the industry. From May 8 to 10, 2025, the exhibition will once again gather leading brands and authoritative experts from the global recycling field. The event is jointly organized by Tuyap and the PAGCEV Association, dedicated to showcasing cutting-edge technological innovations in every aspect of the plastic recycling process. During the exhibition, visitors will have the opportunity to explore hundreds of products and service types, including raw materials, equipment (including advanced waste sorting equipment), recycling technologies, collaboration resources from waste collection and sorting companies, professional design agencies, and consulting services.4. The United States has made a final ruling on the anti-dumping and countervailing duties for epoxy resin, with the dumping margin for Chinese producers/exporters at 354.99%.On March 31, 2025, the U.S. Department of Commerce issued an announcement, making the final ruling on anti-dumping duties for epoxy resins imported from China, India, South Korea, Thailand, and Taiwan, China. Due to the lack of participation in the response from Chinese enterprises, the dumping margin for producers/exporters from China was determined to be 354.99%, while for producers/exporters from India it was 12.69%-15.68%, for those from South Korea it was 5.62%-7.59%, for those from Thailand it was 5.25%, and for those from Taiwan, China it was 10.93%-26.98%.5. Korea's KG Mobility Collaborates with Chery Automobile to Develop Mid-to-Large SUVsOn April 2nd, it was reported that South Korean automaker KG Mobility announced today that it held a joint development signing ceremony for mid-to-large SUV models with Chery Automobile in Wuhu, Anhui yesterday. The two parties will strengthen technical cooperation to promote future development. This signing ceremony follows the strategic partnership and platform licensing agreement signed with Chery in October last year, marking a concrete plan for substantive collaboration. Both sides will jointly develop mid-to-large SUVs for domestic and international markets and enhance cooperation in areas such as autonomous driving and software-defined vehicle E/E architecture (electrical/electronic hardware and software, etc.).6. Plastic Parts manufacturer Pittsfield Plastics installs a 1600-ton injection molding machine to produce PE parts.Injection molder Pittsfield Plastics Engineering (PPE) has announced the installation of a new 1,600-ton Jupiter 14000 injection molding machine from Absolute Haitian Corp. for large-part molding. The press, along with associated robotics and auxiliary equipment, will allow PPE to meet the needs of its latest customer, a manufacturer of septic products and services for the residential and commercial sanitation waste industry.7. Swiss automatic injector manufacturer invests $220 million to build a factory, entering the U.S. automatic injection molding equipment market.SHL Medical, a syringe manufacturer based in Switzerland, officially opened its most advanced new manufacturing plant in North Charleston, South Carolina. SHL Medical stated that the expansion, first announced in summer 2022 with an investment of $220 million, contributed to the local economy and created hundreds of new jobs in the area.8. 9 million tons of plastic pressure, Vietnam's 870 trillion beverage market faces green packaging transformation!The Vietnam Beer-Alcohol-Beverage Association (VBA) highlights that packaging plays a pivotal role in the modern economy by safeguarding products throughout the complex supply chain from production to consumption. It serves as a vital medium for brand communication and is crucial to the efficiency of the entire production and consumption system. Particularly for an economy like Vietnam, which boasts robust exports and strong domestic demand, the healthy development of the packaging industry holds strategic significance. Data from Nguyen Thanh Giang, General Director of Tetra Pak Vietnam, indicates the packaging industry's immense growth potential: Vietnam's food and beverage sector is projected to achieve a compound annual growth rate (CAGR) of 10.3% by 2027, with the market size reaching 872.9 trillion Vietnamese dong. This powerful market momentum not only demands expanded production capacity in the packaging industry but also raises higher expectations for innovation, functionality (such as aseptic preservation), design, and sustainability. Overseas macro market information:【Brazilian Congress Proposes Bill to Counter Unilateral Trade Actions】 On April 1 local time, the Economic Affairs Committee of the Brazilian Senate unanimously passed a proposal titled the "Economic Reciprocity Bill," aimed at authorizing the Brazilian government to take countermeasures when its foreign trade interests are harmed. Since this bill adopts a fast-track mechanism, it will bypass a full Senate vote and be directly submitted to the House of Representatives for deliberation.【Tesla European Sales Plunge】 Tesla electric vehicles have seen a sharp decline in sales in several European markets due to dissatisfaction with CEO Elon Musk and a boycott of his company's products, as well as reduced appeal after being on the market for many years. According to a report by Agence France-Presse on April 1, data from the French automotive manufacturer and sales platform showed that in March, Tesla's sales in France fell by 36.8% year-on-year amidst a slight dip in the overall French electric vehicle market. Swedish data indicated that Tesla's sales in March dropped by 63.9% year-on-year, and by 55.2% in the first quarter. In Denmark, Tesla's sales in the first quarter declined by 56% year-on-year.Goldman Sachs: Downgrades forecast for 10-year Japanese government bond yield by the end of 2025 to reflect U.S. recession risks; yen is the preferred tool to hedge against U.S. recession and tariff risks. Goldman Sachs' research team stated in a report that it has lowered its forecast for the 10-year Japanese government bond yield by the end of 2025 from the previous 1.60% to 1.50% to reflect the increased risk of a U.S. economic recession. Goldman Sachs noted that the rising risk of such an outcome may affect market pricing of the Bank of Japan's continued tightening policy. Goldman Sachs stated: "The downward trend in the stock market and relatively low U.S. economic growth also tilt the risks towards a stronger yen."Goldman Sachs expects the yen to strengthen to the lower end of the 140 zone against the dollar this year, as concerns around US growth and trade tariffs will boost demand for the yen. It believes that if the risk of a US economic recession increases, the yen will be the best hedge for investors.On April 1st local time, the Mexican government issued a statement saying that President Sheinbaum held his first telephone conversation with new Canadian Prime Minister Carney on the same day, during which both sides reached a consensus on the importance of maintaining economic competitiveness in North America. The statement noted that the leaders of the two countries agreed to continue dialogue to promote the process of regional economic integration while respecting the sovereign rights of member states. The Canadian government's statement described the leaders' call as productive, stating that Canada and Mexico are committed to deepening trade relations and jointly building a stronger economy.【Japanese Rice Prices Hit 12th Straight Week of Record Highs, Average Price per Bag Exceeds 200 Yuan】Latest statistics from Japan’s Ministry of Agriculture, Forestry and Fisheries show that the average price of a 5-kilogram bag of regular rice in Japan is 4,197 yen (approximately 204 yuan RMB), which is about twice the price of the same period last year, marking 12 consecutive weeks of record highs. Japanese Prime Minister Shigeru Ishiba stated on April 1st that if necessary, the government will release more reserve rice into the market to stabilize prices.【Canada to Avoid Tariff Retaliation That Could Affect Domestic Jobs and Drive Up Prices】 Canada will refrain from implementing tariff countermeasures that could impact domestic employment and increase prices, according to two federal trade advisors. The country will not impose retaliatory tariffs on most U.S. food products and other essential goods.Finland has announced that it will completely shut down coal-fired power plants this spring. On April 1, the Finnish government stated that as two energy companies gradually close all coal-fired power plants, Finland will fully stop using coal in energy production this year. The Finnish government indicated that in the future, energy companies will rely on electric boilers, heat pumps, energy storage, biomass energy, and waste heat recovery to produce thermal energy, while the focus of electricity generation will shift to wind, nuclear, hydro, and solar energy.【MOFCOM Extends Anti-Dumping Investigation on Imported Brandy from EU to July 5】 In accordance with the provisions of the "Regulations of the People's Republic of China on Anti-Dumping," on January 5, 2024, MOFCOM issued Announcement No. 1 of 2024, deciding to initiate an anti-dumping investigation into imported brandy originating from the EU. On December 25, 2024, MOFCOM issued Announcement No. 59 of 2024, deciding to extend the investigation period to April 5, 2025. Given the complexity of this case, in accordance with Article 26 of the "Regulations of the People's Republic of China on Anti-Dumping," MOFCOM has decided to further extend the investigation period to July 5, 2025. Price information:【The central parity rate of the renminbi against the US dollar was下调18 basis points.】Note: It seems there is a missing word in the original Chinese sentence. The correct sentence should be "【人民币兑美元中间价下调18个基点】". The translation provided is the closest accurate representation given the context, but typically it would be phrased as "The central parity rate of the renminbi against the US dollar was下调18 basis points." or more naturally, "The central parity rate of the renminbi against the US dollar was adjusted down by 18 basis points."The central parity rate of the yuan against the US dollar was set at 7.1793, down by 18 basis points. The previous trading day's central parity rate was 7.1775, the official closing rate was 7.2687, and the overnight rate closed at 7.2706.Upstream raw material USD market priceEthylene Asia: CFR Northeast Asia $855/ton; CFR Southeast Asia $920/ton.Propylene Northeast Asia: FOB Korea average price 800 USD/ton; CFR China average price 820 USD/ton, down 5 USD/ton.North Asia frozen cargo CIF price, propane $627-629 per ton; butane $617-619 per ton.The onshore price for South China frozen goods in April is as follows: propane 627-629 USD/ton; butane 617-619 USD/ton.The landed price of frozen goods in the Taiwan region: propane $627-629 per ton; butane $617-619 per ton.【LLDPE U.S. Dollar Market Price】Film: $955/ton (CFR Huangpu);Injection molding: 1010 USD/ton (spot in Dongguan bonded area);【HDPE US Dollar Market Price】Film: $940-950 per ton (CFR Huangpu).Hollow: $890-965/ton (CFR Huangpu)Injection molding: $825/ton (CFR Huangpu).LDPE USD Market PriceFilm: $1120/ton (CFR Huangpu), down $15/ton;Coating: $1360 per ton (CFR Huangpu).PP USD Market PriceAverage concentration: 935-990 USD/ton (spot), down 5 USD/ton;Co-polymer: $995-$1060/ton (CFR Huangpu spot)Film material: 1030-1105 USD/ton (CFR Huangpu);Transparent: $1020-$1050 per ton (CFR Huangpu spot);Tubing: $1,160 per ton (CFR Shanghai).

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second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Chesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Chollesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second 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second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second 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group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second 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group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of the second Cholesthe group of theAt a recent meeting of the Dallas Fed Energy Advisory Council, industry executives expressed that companies will continue to maintain a cautious attitude toward production growth, focusing on capital discipline and sustaining investments. This reflects the current robust attitude of the oil and gas industry—in an era facing dual uncertainties in supply and demand, maintaining financial stability is far more important than pursuing expansion through excessive investment.Capital expenditures are the lifeblood of the energy industry: capital expenditures in the upstream oil and gas sector are primarily used for maintaining and expanding production scales, purchasing asset equipment, and exploring new reserves, specifically covering drilling and completion, construction of oilfield roads and power facilities, geological surveys, and exploration wells in new blocks.The outlook for capital expenditure is important because it directly impacts future oil and gas supply, which in turn influences current and long-term energy price trends. Given the foundational role of energy in the global economy, industry dynamics have significant spillover effects on macroeconomic indicators such as GDP, employment, and inflation.From the bank's perspective, capital expenditure holds special significance. Oil and gas companies often need to invest huge upfront costs, and the investment payback period is long, making them highly reliant on equity financing and debt financing. Bank loans are especially an important financing channel for small and medium-sized producers—these companies typically have limited business scale, weak operating cash flow, high leverage ratios, and are more susceptible to price fluctuations due to a lack of vertical integration capabilities.The oil and gas industry is characterized by significant cyclicality, with price fluctuations leading to boom and bust cycles that are often exacerbated by changes in global demand and the叠加 of geopolitical factors. For example, during the oil price collapse from 2014 to 2016 (from $93 per barrel to $43 per barrel), the industry experienced a wave of bankruptcies, resulting in deteriorating credit quality and loan portfolio performance for banks with high exposure to oil and gas risks.The subsequent period of low oil prices continues to impact the upstream oil and gas industry. Although structural adjustments have been made through bankruptcies and industry consolidation, most surviving companies have only recently been able to shake off the long-term state of weak profitability, yet仍然 burdened with tight liquidity and high leverage.Since 2010, the strategic focus of the upstream oil and gas industry has shifted from capacity expansion to maximizing free cash flow, with capital expenditure entering a rational phase. Although global demand recovery in 2022, coupled with the Russia-Ukraine conflict, drove upstream investment back up to $514 billion, this figure is still about $70 billion lower than the peak during the U.S. shale boom in 2011, according to estimates by the International Energy Forum. The reasons for this can be attributed to significant cost reductions and improved oilfield efficiency, along with the industry achieving positive operating cash flow during the recovery period, which together have contributed to the improvement of oil and gas companies' balance sheets.However, despite the gradual recovery of the industry’s balance sheets and a more rational approach to capital budgeting, the global oil and gas market still needs to be vigilant about two key risk points—price volatility and financing conditions.The oil and gas market is highly volatile, with price fluctuations potentially triggered by geopolitical events, supply and demand imbalances, natural disasters, and policy adjustments. Sudden price drops or surges can directly impact corporate financial stability. For banks exposed to industry risks, this could lead to a surge in loan defaults and an increase in credit risk. Historical experience shows that downturns in the oil and gas market are often accompanied by waves of bankruptcies and deteriorating asset quality in banks.Since the end of 2022, OPEC+ (the Organization of the Petroleum Exporting Countries and its allies) has persistently implemented production cuts to stabilize prices. The current voluntary reduction plan of 2.2 million barrels per day is set to phase out by December 2026, but the policy duration could be extended or intensified if member countries reach a consensus. Uncertainties in the crude oil market partly stem from OPEC's dilemma: increasing production would heighten risks if global demand weakens, but sustained output reductions could impact the fiscal balance of oil-producing nations.At the same time, the oil and gas industry, as a capital-intensive field, often has project profitability cycles that last for years or even decades. The smoothness of financing channels is crucial for maintaining operations and achieving growth. Changes in the source and scale of financing will affect the long-term survival capabilities of enterprises, thereby altering the industry's credit landscape. Notably, private equity financing has recovered post-pandemic, while capital expenditure has shown a contraction trend. Given the significant reduction in the number of unfinished wells, the industry may need to increase investment in exploration and development, which will lead to a higher reliance on external financing.Although the oil and gas industry has recovered from the pandemic's impact and practiced capital discipline, the development trends in these areas still require continuous attention. Author: Gao Xing, Senior Market Analysis Expert at ZhuanSu Vision

The latest Shanghai Containerized Freight Index (SCFI) was recently released, ending a consecutive ten-week decline with structural rebounds in freight rates on major Europe and U.S. routes. Among them, the U.S. West Coast route saw a single-week surge of 16.29%, while the Europe route bottomed out with a 0.92% increase. This shift has drawn significant attention in the plastic and chemical industry sector.The cost red line triggers a pricing protection battle.The direct reason for the rebound in freight rates this round comes from the shipping companies' cost defense strategy. Taking Formosa Plastics Marine as an example, its 10 chemical tankers with a capacity of 30,000 tons are responsible for the transoceanic transportation of basic raw materials such as ethylene glycol and methanol. When the spot price on the West Coast of the U.S. dropped below $1,600 per FEU, multiple shipping companies collectively activated price adjustment mechanisms on April 1st, attempting to stabilize long-term contracts through short-term price control. Data shows that the long-term price for the West Coast route in 2025 has increased by 15%-20% compared to last year, and shipping companies need to use spot market premiums to hedge against cost pressures.SCFI freight rates:The freight rate from Shanghai to Europe is $1,318 per TEU, up by $12, a 0.92% increase.The freight rate from Shanghai to the Mediterranean is $2,076 per TEU, down $119, a weekly decrease of 5.42%.The freight rate from Shanghai to the US West Coast is $2,177/FEU, an increase of $305, a rise of 16.29%.The freight rate from Shanghai to the U.S. East Coast is $3,194/FEU, up $328, an increase of 11.44%.The freight rate for the Persian Gulf route is $1188 per container, up $129, a weekly increase of 12.18%.The freight rate for the South America route (Santos) is $2,172 per container, up $49, an increase of 2.31%.The freight rate for the Southeast Asia route (Singapore) is $433 per container, down by $13, a weekly decrease of 2.91%.For the near-ocean routes, the fare from Far East to Kansai, Japan is $319, up $15, with an increase of 4.93%; the fare from Far East to Kanto, Japan is $324, up $14, with an increase of 4.52%; the fare from Far East to Korea is up $4 to $141, with an increase of 2.92%.This strategy mirrors the 'basis trade' model in the plastics industry. Polyester industry chain enterprises lock in raw material costs through the futures market, while shipping companies bind cargo owners with long-term contracts, both trying to smooth market fluctuations using financial instruments. Just as the polyester industry adopts production cuts to maintain prices during high inventory cycles, the shipping industry's price alliances also exhibit price coordination characteristics. Leading companies like Maersk and Mediterranean Shipping Company have clearly stated that they will further raise freight rates after mid-April. The resilience of plasticization demand supports market expectations.Plastic products serve as the "lifeblood" of industrial economies, with their transportation demand exhibiting strong rigidity. Taking ethylene glycol as an example, China's import volume in 2024 reached 18 million tons, 70% of which was transported via ocean container shipping. Although the Trump administration's tariff policies led to increased costs for some raw material imports, the rigid demand from downstream industries such as textiles and packaging continues to support the market. Formosa Plastics Marine Corporation revealed that the loading rate of its South China-Taiwan route container ships has recovered to 85%, primarily transporting raw materials like PVC and ABS, which are widely used in the production of electronic product casings. This type of demand is relatively lagging in its response to end-consumer trends.It is noteworthy that the plastic industry chain is accelerating the construction of a 'virtual inventory' system. Traders such as Zhongji Ningbo are deeply integrating physical warehouses with futures delivery warehouses through a futures-spot linkage model. This innovative approach not only reduces logistics costs but also enhances the predictability of transportation demand. Data shows that in 2024, the delivery volume of PTA futures increased by 40% year-on-year, with futures-spot combined trade accounting for over 60% of the total. This shift has directly impacted the slot allocation strategies of shipping companies.The market turnaround still needs time to be validated.Despite a technical rebound in freight rates, the structural challenges facing the plastics industry remain. North America's dependence on imports of basic raw materials such as methanol is as high as 45%. The Trump administration’s imposition of tariffs on Canada could trigger a chain reaction in the supply chain of plastic raw materials. Formosa Plastics Ocean Shipping has begun adjusting its fleet structure, planning to add four 260,000-ton VLCC tankers to address potential changes in energy transportation demand.Industry insiders point out that the current rebound in freight rates is more a result of short-term speculation, and a real market turnaround depends on the completion of the destocking cycle in the plastics industry. In 2024, polyester industry inventory days once exceeded the 60-day warning line, but through production cuts, inventory was reduced to 45 days. However, the recovery of terminal demand remains unclear. In this context, whether the shipping companies' battle to defend freight rates can continue depends on whether the plastics enterprises can achieve value reconstruction through technological innovation and collaboration within the industrial chain.From the perspective of the petrochemical industry, fluctuations in ocean freight rates are not just changes in logistics costs but also a microcosm of the restructuring of the global supply chain. As China transitions from the "world factory" to an "innovation hub," the logistics demands of the petrochemical industry will trend towards high-end and customized solutions, potentially fostering more resilient shipping service models.

Despite the persistently sluggish freight rates in the spot market, it is noteworthy that several well-known shipping companies have recently decided to buck the trend by announcing a new round of price increases set to take effect in April. This round of hikes covers several key routes, including South America, the Mediterranean, and West Africa, with the increases being quite substantial. According to the notices, the highest adjustment could reach up to $1,000 per forty-foot equivalent unit (FEU). MSC MediterraneanRecently, Mediterranean Shipping Company (MSC) has issued a notice announcing an increase in the FAK rates for all routes from Far East ports (including but not limited to major ports in Japan, South Korea, and Southeast Asia) to the Mediterranean region (including the Western Mediterranean, Eastern Mediterranean, Adriatic Sea, and North African ports) and Black Sea ports. This rate adjustment is scheduled to take effect from April 1, 2025. Specifically, the maximum freight rate for 20-foot containers will be increased by USD 400, while the maximum freight rate for 40-foot containers will be increased by USD 800. Below are the details of this rate adjustment: CMA CGMRecently, CMA CGM officially announced that starting from April 1, 2025, it will implement new FAK rates for all cargo shipments originating from major Asian ports to Mediterranean and North African ports. Notably, the rates for 20-foot containers from Asia to North African ports will increase to $4,200, while 40-foot containers will rise to $6,000. Below are the specific details of this rate adjustment:Hapag-LloydRecently, Hapag-Lloyd announced that it will increase the GRI for shipments from Asia to the West Coast of South America, the East Coast of South America, Mexico, Central America, and the Caribbean. This GRI adjustment will cover 20-foot and 40-foot dry containers, including high-cube containers and 40-foot non-operating reefer containers. The adjustment will take effect on April 1, 2025, for all destinations listed in the announcement, except for Puerto Rico and the U.S. Virgin Islands, which will apply from April 19, 2025, until further notice.The specific amount of the GRI increase in this instance is as follows:20-foot dry cargo container: increase by 500 US dollars40-foot dry cargo container: increase by $100040ft high cube: additional $100040-foot dry freezer container: Increase by 1000 USD

In recent years,PEThe continuous increase in product supply, coupled with the concentrated commissioning of large-scale refining and chemical enterprises, has led to a mismatch between the concentrated release of production capacity and the growth rate of demand in the industry. This has resulted in a scenario characterized by "dual growth in supply and demand, with pressure on profits," marking a transition from extensive expansion to refined development.With the concentrated expansion of large domestic refining and chemical facilities, the capacity of polyethylene has significantly increased in various regions, leading to the full formation of a diversified competitive market landscape. After the new capacity was put into operation, most of it was used for producing general-purpose materials. With the expectation that the supply growth rate would significantly outpace the consumption growth rate, the favorable conditions for supply growth have weakened. As a result, the capacity utilization rate of polyethylene has decreased to varying degrees.According to Jin Lianchuang statistics, as of2024Year,PEProduction capacity reaches343110,000 tons, with an annual growth rate of11%Since the production enterprises are all concentrated in the fourth quarter, the growth of output is not obvious, reaching2780.91 Ten thousand tons, with an annual growth rate of1.85%. Subsequent concentrated production of equipment is still expected.2025By 2023, China's polyethylene production capacity will reach423910,000 tons, with a significant synchronous increase in production, expected in3280The domestic polyethylene market is inevitably heading towards a fiercely competitive future with millions of tons at stake.As domestic capacity continues to increase, the pressure on the supply side continues to rise. The products are primarily low-end, characterized by product homogeneity, price competition, similar sales models in the petrochemical and trading sectors, and similar usage directions, leading to a continuous compression of product profits. In the current situation of a surge in supply on the product side, China...PEThe pattern of imports and exports in the market has also changed significantly, with imports decreasing year by year, while exports have increased as domestic industries seek more export opportunities.According to statistics from JLC,2024DomesticPEExport volume reached82.18ten thousand ton(s),2025Year DomesticPE Export volume is expected to reach11010,000 tons, expected to be2024annual increase27.82 Ten thousand tons, year-on-year increase33.85%。According to statistics from Jin Lian Chuan:2024YearPEExporting CountryTOP10From the perspective of proportion and ranking,PEThe target export enterprises mainly focus on Southeast Asia, South Asia, Russia, and parts of Africa. Currently, Southeast Asia and South Asia have absorbed some of the transfer of low-end manufacturing from China, with the overall manufacturing sector showing vigorous development. Proximity to China ensures low transportation costs and rapid, efficient delivery of goods, providing certain geographical advantages. Additionally, the well-established bilateral trade cooperation mechanisms and improved customs clearance convenience further enhance the appeal for domestic businesses.PEEnhance its export orientation.As domestic competition pressure continues to intensify in the future, it is expected that polyethylene export volumes will continue to increase, expanding exports to Southeast Asia, Africa, and South America, thereby opening up overseas markets and fundamentally changing the import and export landscape. Additionally, the continued implementation of the Belt and Road Initiative and the ongoing opening of Sino-Russian trade ports will stimulate the northwest region.-Central Asia, Northeast-The possibility of demand growth in Russia's Far East region.

Due to the continuous rise in raw material costs, after Longqi Enterprise issued a price increase notice on March 21st, other titanium manufacturers also followed by raising their prices, leading to the "third round" of price increases in the titanium dioxide industry. However, there has been no noticeable improvement in downstream demand. Despite it being the traditional peak season of “golden March and silver April,” buyer sentiment for signing orders is not as high as expected. There is a situation where demand from previous orders has been over-consumed, and currently, buyers are mainly placing orders for essential needs. The situation of manufacturers is polarized, with some still in a state of processing and shipping orders, while others have increased inventory and generally adopt a wait-and-see attitude. Under this situation, some manufacturers are primarily focused on fulfilling earlier orders, and they are relatively cautious about receiving new orders and large orders. The execution of new order prices remains to be confirmed. Currently, the market is still in a观望state, maintaining a wait-and-see attitude.The global economic recovery has driven an increase in international market demand. Simultaneously, the results of anti-dumping investigations by major importing countries have been successively implemented, leading foreign customers to stockpile 1-2 months of inventory in advance. This demand frontloading has caused a rise in China's titanium dioxide exports in the first quarter. However, export growth has slowed due to international trade frictions and exchange rate fluctuations.According to customs data, from January to February 2025, the cumulative export of titanium dioxide reached 315,900 tons, increasing by 7.68% year-on-year. The export volume of sulfuric acid process titanium dioxide was 257,600 tons, with the top three export destinations being India, Turkey, and the United Arab Emirates, accounting for 20.57%, 6.88%, and 5.56% of the total export volume, respectively. About 58,400 tons of chlorinated process titanium dioxide were exported, with the top three export destinations being India, Egypt, and South Korea, which accounted for 18.17%, 8.75%, and 7.33% of the total chlorinated process export volume, respectively. The export data from the first two months of this year shows that the economic growth of emerging developing countries such as India, Turkey, and the United Arab Emirates, along with the development of infrastructure and real estate, has led to strong demand in downstream industries such as coatings and plastics. On the other hand, the reduction caused by EU anti-dumping measures has forced domestic titanium dioxide enterprises to accelerate the development of markets in Southeast Asia due to the impact of anti-dumping measures in the EU and India.Due to the dual impact of rising raw material costs and declining market demand, it is expected that titanium dioxide prices will decrease in the second quarter following the off-peak and peak season cycle. On the supply side, limited new capacity release is influenced by industry profits, but the market oversupply situation remains difficult to alleviate. With the continuous advancement of environmental policies and accelerated industry consolidation, the titanium dioxide industry will move towards scale and intensification, and the market share of leading companies will further expand. It is expected that the mainstream market price of sulfuric acid process rutile titanium dioxide in the second quarter will be 14,200-15,900 yuan/ton, with a negotiation price fluctuation range of about 300-500 yuan/ton. The actual transaction price will be determined on a case-by-case basis depending on order volume and manufacturer inventory levels.

Background: By the end of the 2025 Spring Festival holiday, the PVC industry inventory saw a continuation of the destocking trend. Although domestic downstream demand resumed, the storage volumes and order pressures in downstream processing enterprises made it difficult to rapidly accelerate the destocking process. From January to February, PVC export shipments surged to 610,000 tons, an 85% increase year-over-year. The rapid growth in export demand effectively alleviated the supply-demand imbalance pressure during the holiday period, playing a positive role in the destocking of upstream inventories and the market.One, impressive PVC exports, rush to export amid multiple policy pressuresFigure 1 PVC Export Trend Change in 2024-2025 (Unit: Million Tonnes)Despite the impact of the Spring Festival on PVC export deliveries in January, the year-on-year change in PVC exports still showed a strong performance. According to statistics, domestic PVC exports in January and February 2025 were 280,000 tons and 330,000 tons respectively, totaling 610,000 tons, a significant increase of 85% compared to the 330,000 tons in January-February last year.The rapid and substantial increase in PVC exports is related to changes in global trade policies. The potential rise in prices and export risks due to additional tariffs imposed by the US, as well as the anti-dumping duties on imported PVC and BIS policies in India, have influenced foreign PVC traders and manufacturers to stock up and procure PVC materials in advance. Additionally, lower shipping costs accelerated the concentrated delivery of PVC exports. Since October 2024, following the rumors of tariff increases in the US and the import policy risks in India, various customers have started to procure and store goods in advance, leading to a significant year-over-year increase in exports.2. India remains the primary export destinationIn 2024, China's total PVC exports amounted to 2.6175 million tons, with the top five trading partners being India, Vietnam, Thailand, Nigeria, and Uzbekistan. The total exports to these five countries accounted for 68% of the export volume.Figure 2 Structure Chart of PVC Export Main Destinations (Unit: 10,000 tons)The main export trade partners in January-February 2025, including India, Nigeria, Vietnam, Thailand, and others, remained unchanged. Among them, India accounted for over 43% of PVC exports, making it the largest destination for China's PVC exports.III. PVC Export Deliveries Remain High, Facilitating Domestic Inventory ReductionFigure 3 Comparison of Changes in Domestic PVC Industry Inventory and Export Delivery Volume (Unit: 10,000 tons)As shown in Figure 3, excluding the impact of the Spring Festival in February when PVC industry inventory surged rapidly, the overall PVC industry inventory has been on a steady decline, while PVC exports have correspondingly shown a steady increase. Apart from the Spring Festival effect in February, domestic demand has remained relatively stable in other months. This indicates that both the total volume and the incremental growth of PVC exports have a direct impact on the domestic PVC industry inventory.The PVC exports are expected to maintain a high delivery volume in March and April. According to the statistics of Longzhong Data, there is still a window period for PVC exports to India before the anti-dumping duties on imported PVC in India take effect in May and before the impact of BIS on shipping schedules in May. Considering the rainy season in Southeast Asia and India, the main PVC consuming regions, which will start in May and June and lead to an off-season, the short-term increase in PVC exports will continue to help reduce the inventory in the PVC industry.

In recent years, domestic packaging industry listed companies have turned their attention to the Southeast Asian market. Companies such as Yutong Technology, Hengxin Life, Zhongxin Co., Jialian Technology, and Tianyuan Co. have established production bases in Thailand, Vietnam, and other locations to be closer to international clients like Apple and Samsung, and to cope with the uncertainties brought about by Sino-U.S. trade frictions.On March 28, 2025, Prince New Materials (002735.SZ) released its annual report for 2024, stating that the company achieved operating revenue of 1.989 billion yuan, a year-on-year increase of 12.15%. However, the net profit attributable to shareholders plummeted by 213.51% to -68.5025 million yuan, marking the first annual loss since its listing. The financial report indicated that the profitability of the company's core business is under pressure, with a year-on-year decline of 236.59% in net profit after deducting non-recurring gains and losses, and the net cash flow from operating activities turning negative, reflecting a dilemma of increasing revenue without increasing profit.Main reasons for losses: Asset impairment and cost pressuresWangzi New Materials attributed the decline in performance to multiple factors. First, the holding subsidiary Chongqing Fuyida Technology's profits did not meet expectations, leading to an impairment provision of 68.9 million yuan, which reduced the current period's profit and loss. Additionally, the disposal of non-current assets incurred a loss of over 12.99 million yuan, further dragging down profit performance.Notably, the company's cash flow situation is concerning. During the reporting period, cash outflows from investment activities surged by 432.32% year-on-year to 528 million yuan, primarily used for the construction of production bases and equipment procurement in Southeast Asia. Meanwhile, cash inflows from financing activities decreased by 121.60% year-on-year, reflecting the capital market's cautious stance on its expansion strategy.Prince New Materials Deepens Southeast Asia Layout, Global Strategy Advances Another StepFacing intensified domestic market competition and changes in the international trade environment, Wangzi New Materials is accelerating its overseas expansion. Following the establishment of Thailand Tian Tai Environmental Packaging Technology Co., Ltd. in January 2024 to delve into the supporting materials market for industries such as new energy and electronic appliances, the company announced a major breakthrough in the Southeast Asian market on March 27, 2025.This strategic layout includes two core initiatives: First, a joint venture with a local Vietnamese company to establish Prince (Vietnam) Co., Ltd. (tentative name), focusing on developing packaging material markets for the electronics and home appliances and new energy industries, serving international leading enterprise customers within the region. Second, the establishment of Dianbang Technology (Thailand) Co., Ltd. in Thailand, concentrating on localized research, development, and production in emerging fields such as energy storage and mobile power sources.The above layout will create a synergistic dual-hub effect in Southeast Asia, integrating regional resources to further enhance the company's global supply chain service network and provide comprehensive end-to-end solutions for strategic emerging industries such as new energy and consumer electronics.Shareholder investment situation of Thailand Tian Tai Environmental Protection Packaging Technology Co., Ltd.Wangzi (Vietnam) Co., Ltd. Shareholder Capital Contribution StatusDianbang Technology (Thailand) Co., Ltd. Shareholder Capital Contribution StatusIndustry Trend: Packaging Companies Clustering in Southeast AsiaPrince New Materials'布局 in Southeast Asia is not an isolated case. In recent years, listed companies in China's packaging industry have increasingly set their sights on the Southeast Asian market. Companies such as Yongtong Technology, Hengxin Life, Zhongxin Co., Jiaquan Technology, and Tianyuan Co. have all established production bases in Thailand, Vietnam, and other locations to be closer to international clients like Apple and Samsung, and to mitigate uncertainties brought about by Sino-US trade friction. Analysts point out that the Southeast Asian region boasts significant demographic dividends, large consumer market potential, and dense preferential trade agreements with European and American markets, making it an important destination for the relocation of Chinese manufacturing.Taking Yuto Packaging Technology (002831) as an example, as a leading provider of comprehensive packaging solutions for high-end brands in China, it has an extensive presence in Southeast Asia, with factories in Bac Ninh, Vietnam; Rayong, Thailand; and Penang, Malaysia. By establishing local production bases, Yuto Packaging Technology can quickly respond to customer needs and achieve localized production.Hengxin Life (301501) also established Hengxin Life Technology (Thailand) Co., Ltd. in February 2024. Hengxin Life's biodegradable plastic packaging products cover the catering industry, including fast food, takeout, and beverages, as well as various consumption scenarios, with a wide sales area. Setting up a factory in the Golden Pool Industrial Park in Thailand will help it further expand into the Asian market as well as the international markets of North America, Oceania, and Europe.Zhongxin Co., Ltd. (603091) has also turned its attention to Thailand. In November 2023, it registered Thailand Zhongxin Environmental Technology Co., Ltd., planning to invest 50 million USD to purchase 130 acres of land in the Jinchi Industrial Park, to build a production base for 50,000 tons of pulp molded dining utensils annually. As a world-leading company in "disposable plant fiber biodegradable environmental dining utensils," Zhongxin's products are primarily for export, mainly to North America, Europe, and other countries and regions. The decision to establish a factory in Thailand is mainly due to local advantages such as lower labor costs and minimal tariff impact. Currently, the first workshop of its Thai factory has successfully commenced production, and the second workshop is in the process of equipment installation. It is expected that the output will exceed 30,000 tons in 2025 and reach 50,000 tons by 2026.Jialian Technology (301193), as a new tea beverage supplier, is mainly engaged in the research, development, production, and sales of high-end plastic products and fully biodegradable products. In 2023, the company completed the registration of its subsidiary in Thailand, Thai Jiaxiang Co., Ltd., and purchased land for the investment in a new production base, with a planned investment amount not exceeding 300 million yuan. Jialian Technology's production capacity was originally concentrated in China; establishing a factory in Thailand can better explore and meet the needs of overseas customers, improve business layout and medium to long-term strategic development planning, and enhance the company's competitiveness and risk resistance in the international market. After the United States launched "anti-dumping and countervailing investigations" against similar products from China and Vietnam, the Thai factory has become a key node for undertaking orders from Europe and the United States, with external sales revenue expected to account for more than 60% in 2024.However, industry insiders remind that overseas expansion needs to be cautious of risks such as geopolitical issues, labor regulations, and local management. Wangzi New Materials admitted in its annual report that the Thailand project is still in the early stages of construction and may be difficult to contribute profits in the short term. The company will continue to pay attention to investment returns and cash flow balance.

According to customs data, the PVC import volume in February 2025 was 16,100 tons, with an average import price of $783 per ton. The cumulative import volume from January to February was 39,200 tons. The monthly import volume decreased by 30.71% compared to the previous month, increased by 26.18% compared to the same period last year, and the cumulative import volume increased by 11.19% compared to the same period last year.In February 2025, the PVC export volume was 329,600 tons, with an average export price of 638 USD/ton. The cumulative export from January to February reached 610,000 tons; the monthly export increased by 17.59% month-on-month and by 105.15% year-on-year, while the cumulative year-on-year increase was 85.36%.

On March 27, 2025, Hyosung Chemical announced that its first 200,000 tons/year propane dehydrogenation (PDH) unit in Ulsan will remain idle. The unit has been shut down since May 2024 and there is still no plan for restart. Meanwhile, although its second 350,000 tons/year PDH unit has completed its annual maintenance, its current operating rate of 90% still shows weakness.In fact, this phenomenon is not an isolated case but a microcosm of the Korean chemical industry's deep dive into the quagmire of profit losses—the fourth-quarter financial reports of major players like LG Chem and Lotte Chemical in 2024 all showed losses exceeding one trillion韩元. What does such a change signify? And how will it impact future market trends?PDHDevice profit decline: the "cost and demand" of"Scissor difference"1 Cost side: High energy prices and raw material fluctuationsThe high-cost dilemma faced by South Korea's chemical industry mainly stems from fluctuations in global energy prices and an increase in domestic power generation costs. The continuous rise in international oil and gas prices acts as the Sword of Damocles hanging over the heads of South Korean chemical companies. Given South Korea's resource scarcity and heavy reliance on imported energy, every fluctuation in international energy prices triggers a ripple effect in its chemical sector. In recent years, the unstable trend of international oil prices has brought significant uncertainty to the raw material procurement of South Korean chemical companies. When oil prices rise, the production costs of chemical enterprises increase, directly impacting product pricing and market competitiveness. Additionally, fluctuations in gas prices have also had a noticeable effect on South Korea's chemical industry; rising gas prices lead to a substantial increase in expenditure during the production process.2. Demand Side: Imbalance in the Supply and Demand of the Propylene MarketDue to the intensifying competition in the chemical industry market and the decline in international chemical product prices, South Korea's chemical industry is at a clear disadvantage in price competition. In the global chemical market, the increasingly fierce price wars in recent years have also severely squeezed the profit margins of enterprises.In recent years, the global production capacity of chemicals such as ethylene and propylene has grown rapidly. Chart by Bloomberg.The global chemical industry is experiencing overcapacity, with price declines observed in multiple segments such as polyolefins, coatings, and dyes. Taking polyolefins as an example, as global capacity continues to expand, market supply is gradually becoming oversupplied, causing product prices to continuously fall. South Korean chemical companies are facing significant challenges in these traditionally advantageous sectors. Due to their relatively high production costs, they struggle to compete with emerging market competitors in price wars.3. Profit model collapseTaking PDH units in East China as an example, the average profit in the fourth quarter of 2024 fell to -304 yuan/ton, with some companies incurring losses of more than 500 yuan per ton. This contrasts sharply with the industry's average gross profit margin of 15% before 2021, a situation that has undoubtedly shocked investors across the entire industry.II. Crisis in the Entire Korean Chemical Industry: Eruption of Structural ContradictionsThe South Korean chemical industry relies on imports for 70% of its energy. In 2024, with international oil prices surpassing $90 per barrel and domestic electricity prices rising by 20%, LG Chem's petrochemical business reported a quarterly loss of 99 billion won, while Lotte Chemical's loss reached 1.1 trillion won. This contrasts with European chemical giants like BASF in Germany, which are shifting towards renewable energy, highlighting the vulnerability of South Korea's energy strategy.First, the high-end market has been breached. Chinese companies like Wanhua Chemical have increased their market share to 35% in specialty chemicals such as MDI and PC through technological breakthroughs, encroaching on South Korea's traditional strongholds. Additionally, the South Korean chemical industry is steadily losing ground in the low-end market: Southeast Asian and Indian companies, leveraging labor cost advantages, are waging price wars in the bulk chemicals market, such as polyolefins.There is another layer of pressure: the carbon neutrality policy promoted by the South Korean government requires the chemical industry to reduce emissions by 40% by 2030, but the imposition of carbon taxes and the need for equipment upgrades significantly increase the average annual costs for enterprises.Three, Breakout Path: From Amputating an Arm to Save the Body to Technological LeapfroggingFacing multiple challenges such as high energy prices and intensifying global competition, South Korea's chemical industry is undergoing unprecedented difficulties. According to the latest data, in 2024, the combined operating loss of South Korea's four major chemical companies (LG Chem, Lotte Chemical, Kumho Petrochemical, and Hanwha Solutions) reached 445 billion Korean won (approximately $318 million). Among them, Lotte Chemical, one of the largest ethylene producers, reported a loss of 414 billion Korean won. Local companies such as Korea Petrochemical Industry and Yeochun NCC also suffered losses.However, the industry has not remained idle, and an escape strategy centered on high-value-added transformation, technological innovation, and global布局has quietly begun. (Note: The word "全球布局" was partially translated as "global布局". In the context of business and industry, a more complete translation would be "global layout" or "global strategy", but since the original sentence was cut off, I've provided the beginning of the phrase. For a full and accurate translation, the entire phrase "全球战略布局" should be considered, which translates to "global strategic layout" or "global strategy".) For a more accurate translation assuming the sentence is meant to be complete:"However, the industry has not remained idle, and an escape strategy centered on high-value-added transformation, technological innovation, and global strategic layout has quietly begun."Breakthrough Path One: Structural Adjustment Aims at Specialty ChemicalsRecently, the South Korean government has introduced the "Petrochemical Industry Restructuring Plan," which clearly identifies specialty chemicals as a strategic direction. Through policies such as tax incentives and low-interest loans, the government encourages companies to shift towards producing high-profit products like copolyesters and acrylonitrile-butadiene-styrene (ABS), as these products have higher profit margins compared to basic chemicals like ethylene. At the same time, the government has amended the "Industrial Competitiveness Law," allowing companies to conduct cross-border mergers and acquisitions without the need for shareholder approval and to defer related income tax payments, thereby enhancing corporate competitiveness. For example, in February 2025, SK Group's battery business platform SK On completed a merger with SK Trading International (an oil trading company) and SK Enterm (a tank terminal operator), forming a new "Global Battery and Trading Company." After the merger, SK On's assets are expected to increase from 33 trillion won to 40 trillion won (approximately 200 billion RMB), and revenue is projected to rise from 13 trillion won to 62 trillion won.Breakthrough Path Two: Technological Revolution Drives Dual Improvement in Efficiency and Environmental ProtectionTechnological innovation has become a "lifesaver" for South Korean chemical companies. For instance, in July 2023, Hanwha Solutions announced the deployment of an AI optimization system in its ethylene cracker at the Yeosu petrochemical complex. This system analyzes parameters such as cracker furnace temperature and feedstock ratio in real-time, dynamically adjusting operating conditions. Hanwha mentioned in its third-quarter 2023 financial report that the AI system reduced energy consumption by 12% in the ethylene facility, saving approximately 28 billion KRW (about $21 million) in annual energy costs.Breakout Path Three: Responding to Geopolitical Risks through Restructuring Global Supply ChainsFacing US-China trade friction and the "China+1" trend in supply chain relocation, South Korean chemical companies are accelerating their overseas expansion. For example, Lotte is investing an additional 1.2 billion Malaysian ringgit (approximately 2.5 billion RMB) in Sarawak, Malaysia, to expand its electrolytic copper foil factory, aiming to become a key supplier of electric vehicle battery materials in Southeast Asia. Additionally, South Korea's Hyosung plans to invest an extra 1.5 billion US dollars in Vietnam, with the new investment used to construct a biotechnology-based production facility and a carbon fiber plant in Ba Ria-Vung Tau Province, southern Vietnam.End of the documentThe downturn in South Korea's chemical industry, although driven by market competition, also presents opportunities for Chinese enterprises.First, South Korean chemical companies appear to struggle in price wars, with their chemical performance remaining sluggish. This, to some extent, proves that in the same chemical products, even generic ones, South Korean companies find it difficult to compete with Chinese enterprises. On one hand, China is the world's largest producer and consumer of plastics, accounting for 15% of global plastic consumption, giving it a vast market scale and domestic demand. On the other hand, China also possesses strong competitiveness in production costs, resource access, and industrial chain integration.Secondly, although South Korean companies are actively laying out special fields such as carbon fiber and high-value-added products like specialty engineering plastics, the technological gap between China and South Korea in these areas is not significant. China has also made remarkable progress in new materials and high-end chemicals, possessing a certain level of technological strength and market competitiveness. Therefore, the expansion of South Korean companies in these fields does not pose a serious threat or a "stranglehold" on Chinese chemical enterprises. Editor: Lily Source of materials: China Petroleum News Center, China Foreign Coatings Network, etc.