The study, to be published by the Center for Strategic and International Studies on Monday, finds that China's backing of its companies amounted to at least 1.73% of its gross domestic product in 2019-the most recent year for which comprehensive data is available-and the trend is continuing.
Small Businesses Lose Confidence in U.S. Economy
Small businesses are flashing warning signs on the U.S. economy as inflation, supply-chain snarls, a shortage of workers and rising interest rates darken the outlook for entrepreneurs.
Fifty-seven percent of small-business owners expect economic conditions in the U.S. to worsen in the next year, up from 42% in April and equal to the all-time low recorded in April 2020, according to a survey of more than 600 small businesses conducted in May for The Wall Street Journal by Vistage Worldwide Inc., a business-coaching and peer-advisory firm.
Rising Risk of Recession Creates New Headache for Biden
The Federal Reserve's efforts to slow inflation are raising the possibility of higher unemployment, a slower-growing economy and a recession, prospects that could create new headaches for the Biden administration.
As the country heads into midterm-election season, much of the political discussion has centered around solid economic growth and robust employment versus the damaging impact of inflation. More recently, warnings about the prospect of an economic downturn-which could come in 2023 according to some estimates-have complicated the economic picture in a new way.
NFTs Are Put to New Use in China, Countering Censorship During Pandemic
In most of the world, the market for NFTs is plummeting. In China, nonfungible tokens are on the rise, not as digital-art investments but as a way to strike back at censorship.
As Chinese internet censors have stepped up efforts to scrub content from social media during the pandemic, web users have increasingly turned to NFTs as a way to secure images, videos, audio and social-media posts on a blockchain to prevent their deletion.
Crypto Might Have an Insider Trading Problem
Public data suggests that several anonymous crypto investors profited from inside knowledge of when tokens would be listed on exchanges.
Over six days last August, one crypto wallet amassed a stake of $360,000 worth of Gnosis coins, a token tied to an effort to build blockchain-based prediction markets. On the seventh day, Binance-the world's largest cryptocurrency exchange by volume-said in a blog post that it would list Gnosis, allowing it to be traded among its users.
Biden Says U.S. Would Intervene Militarily if China Invaded Taiwan
TOKYO-President Biden said the U.S. would get involved militarily to defend Taiwan if China tries to take it by force, issuing a stark warning to Beijing and appearing to break with the longstanding American policy of strategic ambiguity.
"Yes. That's the commitment we made," Mr. Biden said Monday at a news conference in Tokyo during his first trip to Asia as commander-in-chief. He was responding to a question about whether the U.S. would get involved militarily in response to a Chinese invasion of Taiwan after declining to send American troops to Ukraine to fight Russia's invasion.
Biden Says U.S. Is Prepared if North Korea Conducts Missile Test
SEOUL-President Biden said Sunday the U.S. is prepared for the possibility that North Korea will conduct a missile test soon.
"We are prepared for anything North Korea does. We've thought through how we would respond to whatever they do," Mr. Biden told reporters here. "I am not concerned, if that's what you're suggesting."
Biden Keeps Eye on Domestic Politics as He Travels Through Asia
TOKYO-President Biden is roughly 7,000 miles from the White House, but domestic affairs have taken a prominent role as he travels through South Korea and Japan in his first trip to Asia as commander in chief.
With his Democratic Party facing steep challenges ahead of November's midterm elections, Mr. Biden has used the trip to make the case that he is leveraging global alliances to boost the American economy and promote union jobs. His overseas travel, which includes the rollout Monday of a new economic framework with Asian countries, has coincided with polls showing a majority of Americans disapprove of his handling of the economy. U.S. inflation is at its highest level in 40 years.
Pentagon Weighs Deploying Special Forces to Guard Kyiv Embassy
WASHINGTON-U.S. military and diplomatic officials are weighing plans to send special forces troops to Kyiv to guard the newly reopened embassy there, proposals that would force the Biden administration to balance a desire to avoid escalating the U.S. military presence in the war zone against fears for the safety of American diplomats, U.S. officials said.
President Biden has yet to be presented with the proposal. But if he approves it, troops would be deployed only for the defense and security of the embassy, which lies within range of Russian missiles, U.S. officials said. Their presence inside Ukraine would mark an escalation from Mr. Biden's initial pledge that no American troops will be sent into the country.
Swedes Ask if NATO Membership and Peacemaking Can Coexist
For two centuries, Sweden has shunned military alliances. Its decision last week to seek NATO membership ends that, fundamentally altering the Scandinavian country's security posture.
It also challenges the notion of neutrality, for many years a pillar of Swedish national identity, and poses a quandary for many Swedes: How can the country seek to lead global efforts in peace and nuclear disarmament as a member of a military alliance whose power largely rests on nuclear weapons?
NATO Bids From Finland and Sweden Now Depend on Turkey's President
ISTANBUL-NATO membership for Finland and Sweden, potentially among the most dramatic shifts in European security policy in decades, now depends largely on the decision of one man: Turkey's President Recep Tayyip Erdogan.
Mr. Erdogan's decision to block a speedy entrance for the two countries into the North Atlantic Treaty Organization has opened the door to complex negotiations between Western allies and the Turkish government over its stated concerns about the presence of alleged Kurdish militants in Sweden and restrictions on arms sales to Turkey.
Georgia Governor Race Is a Test for Trump. It Isn't Going Well.
DAWSONVILLE, Ga.-Georgia Republican Gov. Brian Kemp seemed to face a bleak political future in the contentious aftermath of the 2020 election.
He had angered former President Donald Trump by not going along with Mr. Trump's false claim that Democrats used election fraud to carry the state for President Biden. Being on the wrong side of Mr. Trump and his supporters has doomed the careers of many GOP politicians.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
None scheduled
Economic Indicators:
None scheduled: Victoria Day (except Quebec), financial markets closed
Stocks to Watch:
GetSwift Announces Letter of Intent With Stage Equity Partners for Sale of GetSwift Assets
Resolute Forest Products Announces Ratification of Collective Agreement at Seven Canadian Pulp and Paper Mills; Four-Year Agreement Ratified; Agreements Cover Approximately 700 Hourly Employees Represented by Unifor
Expected Major Events for Monday
05:00/JPN: Apr Steel Production
08:00/GER: May Ifo Business Climate Index
10:00/FRA: 1Q OECD Quarterly National Accounts: GDP growth
12:30/US: Apr CFNAI Chicago Fed National Activity Index
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Monday
Advance Auto Parts Inc (AAP) is expected to report $3.64 for 1Q.
America's Car-Mart (CRMT) is expected to report $3.10 for 4Q.
Beam Global (BEEM) is expected to report for 1Q.
BitNile Holdings Inc (NILE) is expected to report for 1Q.
Brooklyn ImmunoTherapeutics Inc (BTX) is expected to report for 1Q.
Capital Southwest Corp (CSWC) is expected to report $0.48 for 4Q.
Digital Ally Inc (DGLY) is expected to report $-0.06 for 1Q.
Flanigan's Enterprises Inc (BDL) is expected to report for 2Q.
Hallador Energy Co (HNRG) is expected to report $-0.06 for 1Q.
Heico Corp - A Share (HEI,HEIA) is expected to report $0.61 for 2Q.
Heliogen Inc (HLGN) is expected to report for 1Q.
InnSuites Hospitality Trust (IHT) is expected to report for 4Q.
Nautilus (NLS) is expected to report $-0.43 for 4Q.
Nordson Corporation (NDSN) is expected to report $2.30 for 2Q.
Oncotelic Therapeutics Inc (OTLC) is expected to report for 1Q.
ReShape Lifesciences Inc (RSLS) is expected to report for 1Q.
RespireRx Pharmaceuticals Inc (RSPI) is expected to report for 1Q.
Siebert Financial Corp (SIEB) is expected to report for 1Q.
Skyline Champion Corp (SKY) is expected to report for 4Q.
Sonida Senior Living Corp (SNDA) is expected to report for 1Q.
Star Equity Holdings Inc (STRR) is expected to report for 1Q.
Transcat (TRNS) is expected to report $0.44 for 4Q.
VirnetX Holding Corp (VHC) is expected to report for 1Q.
Zoom Video Communications Inc (ZM) is expected to report for 1Q.
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ANALYST RATINGS ACTIONS
Allstate Cut to Hold From Buy by Argus Research
Citi Trends Cut to Hold From Buy by Craig-Hallum
Comerica Raised to Outperform From Neutral by Baird
Dollar General Cut to Hold From Buy by Gordon Haskett
Freshpet Cut to Neutral From Overweight by Atlantic Equities
Hewlett Packard Ent Cut to Neutral From Buy by B of A Securities
Mirati Therapeutics Raised to Buy From Neutral by Guggenheim
Ollie's Bargain Outlet Raised to Buy From Underperform by B of A Securities
PPG Industries Cut to Hold From Buy by Berenberg
Pure Storage Cut to Neutral From Buy by B of A Securities
Ross Stores Cut to Market Perform From Outperform by Telsey Advisory Group
Spero Therapeutics Cut to Hold From Buy by Berenberg
(MORE TO FOLLOW) Dow Jones Newswires
05-23-22 0541ET
