boosting housing, property, infrastructure, those areas are very high debt level at the moment and that s why the chinese government has been very cautious. but i do expect they will eventually act on it at some point. it at some point. thank you very much for your it at some point. thank you very much for your time it at some point. thank you very much for your time and - it at some point. thank you very much for your time and your - much for your time and your analysis. staying with china now and the growing trade tensions with the us. it s being reported in the new york times that the biden administration is set to issue new restrictions on american investments in certain high tech industries. nick marsh in singapore has the story. well, that report you just mentioned there, described it as a new front in this economic war between the us and china. i think that s a pretty good way of describing it, really. it should be stressed, though, that the white house hasn t confirmed anyt
but ultimately, this is the tit for tat escalation between the world s two largest economies. it shows no signs of abating. and at the end, really, it s businesses who are caught in the middle who are going to be losing out the most. and it does no good for confidence, especially when it comes to investing in china, given that economic picture that we just heard about earlier. honda 5 doubling its profits thanks to healthy sales but also a following wind with the exchange rate. a weaker yen, trading lately at about 143 yen to the us dollar, is a boom forjapanese exporters by boosting the amount of its overseas earnings when converted into yen. automakers around the world were slammed by supply shortages because of covid related production delays and factory shutdowns. those have eased, and, as our guest david leggett from global data explains, sales and profitability are now back on track. yes.
beijing faces calls for stimulus after consumer prices turn negative for first time since early 2021. and counting the cost of the humble tomato india s central bank weighs up the impact of soaring food prices ahead of their latest rate decision. hello, i m victoria valentine, here with the top business stories. we start in china where the latest economic data is fueling concern for hopes of a post covid recovery. chinese exports have suffered their worst fall since start of pandemic. and prices? they re falling rather than going up. unlike much of the rest of the world china isn t experiencing inflation but deflation. it s what we saw injapan in the 90s
with china, if you re going to use the language of the biden administration. in terms of what these new restrictions are, basically, they d ban private equity, venture capitalfirms, financial firms from investing in high tech sectors like quantum computing, ai, semiconductors. of course, they d also require american firms who are making investments in other chinese industries to disclose that to the us government. so basically, it s about keeping a handle on the flow of american dollars into china and really trying to curb that. now, you should expect china to react to this. clearly, this plays in to their accusations that united states is trying to contain china unfairly, to use beijing s language this time. and china also has weapons up its sleeve. don t forget, last week, they put in export controls on gallium and germanium, these two key metals needed for semiconductors.
and early noughties. now this comes hot the heels of dissapointing china trade data on tuesday showing exports sank at their fastest rate since the pandemic. global demand for chinese made goods is falling, down more than 14% in the year tojuly. but domestic demand is down too with imports also falling by more than 12% in the same period. joining me now is janet mui, head of market analysis, rbc brewin dolphin where is this deflation coming from? good morning, thanks for having me. so, this deflation data is mostly coming from food. and also commodities prices like raw materials, energy etc. actually, if you look at the underlying deflation, things like services and tourism and leisure, hotels.