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China’s push into next-generation transport took a leap forward on Monday as the world’s first flying car factory began trial production in Guangzhou, southern Guangdong Province.

China’s People’s Daily with the info.

The 120,000-square-metre facility — billed as the largest of its kind — will produce detachable electric aircraft modules for modular flying cars. It has an initial capacity of 5,000 units a year, scalable to 10,000, and will eventually be able to assemble one aircraft every 30 minutes once fully operational.

The project underscores China’s ambition to lead the emerging aerial mobility sector, blending automotive and aviation technology to meet future urban transport demand.

This article was written by Eamonn Sheridan at investinglive.com.

Australian Dollar (AUD) declines against the US Dollar (USD) on Tuesday, continuing its losing streak for the fifth successive session. The AUD/USD pair remains subdued ahead of the November interest rate decision by the Reserve Bank of Australia (RBA) due later in the day.

China is offering massive power subsidies to major tech firms including ByteDance, Alibaba and Tencent in a bid to accelerate the adoption of homegrown artificial-intelligence chips and reduce reliance on U.S. technology.

According to people familiar with the policy, local governments in Gansu, Guizhou and Inner Mongolia have expanded subsidies covering up to 50% of electricity costs for data centres that use domestically produced AI processors, such as those developed by Huawei and Cambricon. The incentives exclude facilities still using Nvidia’s advanced chips, which remain under U.S. export restrictions.

The move is part of Beijing’s broader push to strengthen its semiconductor ecosystem and shield its tech sector from Washington’s export controls. China banned the purchase of Nvidia’s AI chips earlier this year, forcing companies to turn to less energy-efficient domestic alternatives — a shift that sharply increased power costs.

Sources said some of the new cash and electricity subsidies are large enough to offset an entire year of operating expenses, providing critical relief after months of complaints from industry players about the financial burden of using local chips.

Analysts say the measure underscores Beijing’s determination to make domestic AI hardware viable at scale and support its long-term goal of technological self-sufficiency, even as firms grapple with performance gaps versus foreign products.

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The subsidies highlight Beijing’s push to localise AI infrastructure and strengthen domestic chipmakers like Huawei and Cambricon. The move may boost Chinese semiconductor equities while signalling intensified U.S.–China competition in advanced computing.

This article was written by Eamonn Sheridan at investinglive.com.

Japanese Prime Minister Sanae Takaichi reaffirmed her government’s commitment to boost tax revenue without raising tax rates, saying the focus will be on expanding the economy’s capacity and strengthening its supply structure to sustain growth.

Takaichi said her administration aims to achieve higher fiscal revenues through economic expansion, improved productivity, and a more resilient industrial base, rather than through additional burdens on households or businesses.

She added that Japan’s broader growth strategy will emphasise investment in infrastructure and public services, underpinned by policies to stimulate domestic demand and enhance competitiveness.

Said she aims to complie growth strateiges by next summer.

Takaichi’s remarks align with her pro-growth agenda, balancing fiscal discipline with efforts to revitalise Japan’s economy through innovation, digitalisation, and supply-chain reform.

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Takaichi’s comments reinforce her pro-growth stance and signal continuity in Japan’s fiscal approach, focusing on productivity and supply-side investment. The pledge could support confidence in equities and infrastructure-related sectors while calming tax-policy concerns.

Negative for yen.

This article was written by Eamonn Sheridan at investinglive.com.

China’s central bank will strengthen policy support for the economy and accelerate efforts to promote the international use of the renminbi, a PBOC Deputy Governor said Monday in a livestreamed address.

Said the People’s Bank of China (PBOC) will back the development of the offshore RMB market in Hong Kong, calling it a crucial step in reinforcing the city’s role as a global financial hub. “We will support the construction of a deeper, more liquid offshore yuan market and expand cross-border financial channels,” he said.

The central bank also plans to expand the RMB Cross-Border Interbank Payment System (CIPS), which facilitates yuan-denominated transactions globally, as part of Beijing’s long-term goal to reduce reliance on the U.S. dollar in trade and finance.

Said that as of the end of September, 1,176 foreign institutions had entered China’s domestic bond market, with total holdings reaching 3.8 trillion yuan (US$525 billion) — a sign of sustained international participation in the country’s financial markets despite global headwinds.

The remarks come as Beijing continues to balance stimulus measures with financial stability, seeking to support growth while advancing the yuan’s status as a global currency through Hong Kong’s financial gateway.

This article was written by Eamonn Sheridan at investinglive.com.

US Treasury Secretary Bessent speaking on Fox:

• I will be present at Supreme Court to emphasize the importance of tariffs

Need the cash from tariffs to give it to Argentina?

More:

• says he thinks inflation and interest rates will come down

This article was written by Eamonn Sheridan at investinglive.com.

China’s Vice Premier He Lifeng said Beijing will work closely with international partners to confront new global economic challenges, pledging to strengthen cooperation in trade, investment, and industrial development to bolster global stability.

Speaking via livestream on Monday, He acknowledged that the global economic environment faces fresh uncertainties this year, citing rising protectionism, geopolitical tensions, and uneven growth. He said China intends to “inject more stability into the global economy” by promoting open trade and supporting industrial expansion across borders.

He emphasised that it was “important to deepen trade and economic activities with other countries” and that China would continue to promote global industrial development while safeguarding supply and production chains.

“We will work with all parties to face challenges affecting global trade and ensure stability of global supply and industrial chains,” He said, adding that China seeks to reinforce its role as a stabilising force amid slowing global growth.

His remarks come as policymakers around the world grapple with fragile post-pandemic recoveries and disruptions in trade and logistics, underscoring China’s effort to project economic steadiness and cooperation.

This article was written by Eamonn Sheridan at investinglive.com.

The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.

• The previous close was7.1201

PBOC injects 117.5bn yuan at 1.40% via 7-day reverse repos

This article was written by Eamonn Sheridan at investinglive.com.

The People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.0885 compared to the previous day’s fix of 7.0867 and 7.1226 Reuters estimate.

The NZD/USD pair attracts some sellers to around 0.5695 during the early Asian session on Tuesday. The New Zealand Dollar (NZD)  weakens against the US Dollar (USD) as the latest data showed the Chinese manufacturing sector weakening last month.