EU Says Does Not Want Trade War with Beijing

Vendors offer desserts to pedestrians at a store in Beijing, China, 09 November, 2024. EPA/ANDRES MARTINEZ CASARES
Vendors offer desserts to pedestrians at a store in Beijing, China, 09 November, 2024. EPA/ANDRES MARTINEZ CASARES
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EU Says Does Not Want Trade War with Beijing

Vendors offer desserts to pedestrians at a store in Beijing, China, 09 November, 2024. EPA/ANDRES MARTINEZ CASARES
Vendors offer desserts to pedestrians at a store in Beijing, China, 09 November, 2024. EPA/ANDRES MARTINEZ CASARES

The EU does not want a trade war with Beijing but five years of talks have yielded no real progress, the bloc's ambassador to China said on Saturday, adding that concern was growing over Chinese market access for European medical devices.
Trade frictions between the bloc and China have intensified over the past year after the EU launched an investigation into Chinese-made imports of electric vehicles (EVs) that prompted Beijing to launch probes into Europe's pork and dairy industries and curb brandy imports.
New EU tariffs of up to 45.3% on Chinese EV imports came into effect last week.
On top of that, the EU launched a probe into China's public procurement of medical devices in April, which Beijing swiftly criticized at the time.
Speaking at an event in Shanghai, the EU's Ambassador to China Jorge Toledo said talks with European medical device makers had shown they were being discriminated against in Chinese public procurement.
"We have found out, that it's clear ... European companies, that have been producing medical devices in China for the last two decades, are being discriminated against their Chinese competitors in public procurement," Toledo said at the 30th anniversary celebration of the China Europe International Business School.
"If that is true, and we know it's true, we will treat Chinese companies in Europe the same way we are treated here," Reuters quoted him as saying. "We don't want a trade war. We just want transparency. We want a level playing field."



Saudi Arabia’s Kingdom Holding Buys $400 Million Stake in xAI

xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
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Saudi Arabia’s Kingdom Holding Buys $400 Million Stake in xAI

xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration

Kingdom Holding Company (KHC) said on Wednesday it has acquired a key stake in xAI Corporation, an artificial intelligence company founded by US billionaire Elon Musk for 1.5 billion Saudi Riyals ($400 million), becoming the second largest investor in X and xAI.

The acquisition of the new stake is part of xAI’s Series C funding round, said KHC in its filing to Saudi bourse Tadawul.

This transaction follows KHC's previous investment at the same value in xAI during its Series B funding round.

It further solidifies KHC's strategic partnership with Elon Musk, and follows its strategic stake in X (Twitter), held since 2015, KHC stated.

A post on X said Prince Alwaleed bin Talal became the second largest shareholders in Musk’s two companies, X & xAI.

In November 2022, the Saudi prince moved almost 35 million Twitter shares through the Kingdom Holding Company, worth about $1.9 billion at the $54.20 per share sale price. That made him the “second-largest investor” in the new parent company.
Funding Rounds

The funding rounds consist of several fundraising events in which startups or existing companies raise funds from investors to continue building their infrastructure and accelerate research and development.

The rounds start with a “seed round” of funding where a startup typically raises money from the owners to cover initial operating expenses and then expand to Series A, B, and C funding rounds as the company develops to raise additional capital.

In terms of risks, Series B funding is generally less risky than Series A funding, while Series C is less risky than Series B and is typically used by companies that are growing rapidly and need additional capital to fund their expansion.

Musk's xAI Series C funding round included the Qatar Investment Authority (QIA) and the Oman Investment Authority (OIA).

Participants included Morgan Stanley and BlackRock, which were described as two of the major investors in the fundraising round.

KHC, in which Public Investment Fund (PIF) owns a 17% stake, said xAI has a $45 billion valuation with the latest funding round, indicating a significant increase from its $25 billion valuation during the Series B funding round, the filing showed.

Following the announcement of the acquisition, the shares of KHC, listed on the Saudi Stock Exchange, rose by 0.44% to 9.16 riyals.

xAI’s strategy focuses on developing leading AI models and working closely with other technology companies associated with its founder, including Tesla, SpaceX, and X, whose application has over 500 million users.

KHC said this transaction further solidifies KHC's strategic partnership with Elon Musk, and follows its strategic stake in X (Twitter), held since 2015.

It forms part of KHC’s business model of securing early stakes in emerging technologies and its ambition to lead and innovate within the AI industry, it added.