China Leads Renewable Energy! Why do U.S. Tariffs target copper?
What’s moving the markets today? Recent reports indicate that China is intensifying its efforts to maintain its dominance in renewable energy, revealing that three-quarters of global solar and wind energy projects are now located in China. What does this mean for China's ability to achieve its desired economic growth?
Trump threatens to impose a 50% tariff on copper. What does this mean? Why is Trump targeting copper? How could these tariffs raise concerns about tensions between the US and China?
Meta is acquiring a significant stake in the world's largest eyewear manufacturer as part of its efforts to establish a leading position in various fields of artificial intelligence.
Saudi Basic Industries Corporation (SABIC) is considering an initial public offering (IPO) of its National Industrial Gases Company (NIG). This is part of a comprehensive strategic plan that will enable the Saudi group to address the challenges facing the global natural gas sector.
China is expanding its renewable energy portfolio dramatically worldwide. A new report by the San Francisco-based non-governmental organization Global Energy Monitor states that three-quarters of the world's solar and wind projects are in China.
China is currently building 510 gigawatts of utility-scale solar and wind projects; a staggering number compared to the approximately 689 gigawatts under construction globally. One gigawatt can provide electricity to approximately one million homes.
The report confirms that China leads the world in renewable energy construction and continues to add solar and wind power at a record pace.
China's expansion into clean energy sources is critical to climate change efforts, given its dominant role in global manufacturing. China is responsible for approximately one-third of global greenhouse gas emissions, but it is now preparing to set new climate change targets, which will be announced at the UN Climate Change Conference in Brazil. China is expected to add at least 246.5 gigawatts of solar power and 97.7 gigawatts of wind power this year. By the end of March, China’s operating solar and wind capacity reached approximately 1.5 terawatts, with solar energy accounting for 22.5% of total electricity consumption in Q1 2025.
The impact:
China's renewable energy efforts demonstrate a genuine effort to strategically drive economic growth, especially since clean energy contributed a quarter of China's economic growth in 2024.
China's dominance in clean energy will also enhance its strength in advanced industries such as technology, artificial intelligence, and the electric vehicle industry.
US President Donald Trump announced a 50% tariff on copper imports entering the US market, shocking global commodity markets.
Analysts and observers believe this move will deal a serious blow to China's massive copper refining industry.
Details remain unclear, however, as to whether the tariffs will target copper raw materials and their primary and essential components, which come from South America, Canada, Africa, and Australia, or whether they will target more processed products such as wire, pipe, or even scrap metal.
Although clear details about Trump's move on copper are lacking, it could deal a blow to Chinese refineries at the heart of the global copper industry. China is the world's largest importer of copper and the largest consumer of copper, accounting for approximately 58% of global demand.
It also exports massive quantities of processed copper through its specialized companies, which refined more than 12 million tons of raw copper last year, representing 40% of global production of processed copper. This, in turn, will also expose vital sectors in China, such as electric vehicles, electronics, and artificial intelligence.
The United States obtains most of its refined copper from Chile, Canada, and Peru. While it is not a major importer of raw copper from China, it does import a significant amount of value-added copper, such as foundry products and electrical components.
This could be indirectly targeted by Trump's new tariffs, which could increase the costs of components, most notably copper.
The impact:
These new tariffs on copper could inflame tensions between the United States and China, especially since copper refining is a fundamental pillar of the Chinese industrial economy.
Analysts also point out that the US economy will also be impacted by the rising costs of any industry that relies on copper as an intermediate in its production, given that the US accounts for only 6% of global copper consumption and meets only 65% of its needs domestically.
Analysts also point out that these tariffs could harm other countries, such as Australia, whose copper mines play a significant role in exports to China. They also could disrupt supply chains for key industrial metals, potentially negatively impacting inflation rates.
Meta is intensifying its efforts in the field of artificial intelligence, recently purchasing a minority stake in the world's largest eyewear manufacturer, Essilor Luxottica, a move that confirms the American tech giant's commitment to the fast-growing smart eyewear industry.
Facebook parent company acquired just under 3% of the Ray-Ban eyewear manufacturer, a stake valued at approximately $3.5 billion, according to people familiar with the matter, according to Bloomberg.
The eyewear company saw its highest price in three months in Paris, and this acquisition is seen as a boost to confidence in the company globally and a confirmation of Meta's leadership in the smart eyewear industry.
The two companies have worked together for several years to develop AI-powered smart glasses. Meta currently sells Ray-Ban glasses equipped with built-in cameras and an AI assistant that can interpret images or share prices in real-time, which were first launched in 2021.
The eyewear company's shares rose by about 5.5% in Wednesday's trading, increasing its market capitalization to approximately €116.5 billion.
The impact:
This deal underscores Meta's commitment to consolidating its position in AI across various sectors and forms.
The agreement also gives Meta the advantage of possessing more detailed manufacturing knowledge in the field of powerful glasses, strengthening its dominance in this field over competitors, especially since the smart glasses market is expected to grow to $8.26 billion by 2030, compared to approximately $2 billion in 2024.
Saudi chemical group SABIC, one of the world's largest petrochemical companies and 70% owned by Aramco, announced that it is exploring strategic options, including an initial public offering of its National Industrial Gases Company, as part of a comprehensive review of its business.
SABIC announced in a statement that this step is in line with an overall strategy to improve its investment portfolio and focus on its core businesses.
It emphasized that the initial public offering of the National Industrial Gases Company will aim to improve the group's financial position and increase value for shareholders.
The chemicals sector has faced significant challenges in recent years, particularly considering weak demand and concerns about a slowdown in global economic growth, along with rising input costs, which have led to lower prices and eroded profit margins.
SABIC reported a net loss of $323 million for the first quarter of 2025, due to higher operating costs and higher raw material costs.
SABIC has already sold its stakes in Aluminum Bahrain (Alba) and Hadeed Steel Company to other state-backed Saudi entities.
SABIC confirmed that the IPO is still under review and is subject to financial, technical, administrative, and regulatory evaluations.
The impact:
This offer will diversify SABIC's investment portfolio and reduce the burden of rising costs that lead to reduced profit margins or losses, as seen in Q1 2025.
It may also represent a good investment opportunity for shareholders, especially if the global economic climate improves, which could lead to increased demand for gas, positively impacting both the company's performance and its shareholders.
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