Weekend Buzz: October 11-12, 2025

Trump Reignites China Trade War With New Tariffs, Software Controls

US President Donald Trump on Friday imposed new tariffs of 100 percent on imports from China "over and above any tariff that they are currently paying," effective November 1. Accusing China of an aggressive posture on trade, Trump also said he will impose export controls on "any and all critical software." The average of existing tariffs on Chinese goods before Trump's announcement was 57 percent, according to the Peterson Institute for International Economics. The US retaliation comes as bilateral trade tensions ratcheted up just a month before a tariff truce is due to expire.

China has yet to respond.

This week, China announced new export controls on srare earth minerals critical to industrial production and on lithium batteries and component materials. It also imposed additional port charges on ships owned, flagged or built by US companies in response to new fees Washington is levying on China-linked ships. The new US fees, due to come into effect next week, will effectively cost Chinese-built or operated ships calling at US ports up to US$1 million per trip, depending on capacity.

The US this week said it is considering a ban on Chinese airlines that fly to or from the US using flight paths over Russia, claiming the flight time saved puts US carriers at a disadvantage. The decision would affect carriers like Air China, China Eastern Airlines and China Southern Airlines. The US also added a dozen Chinese companies to its restricted-trade blacklist and has condemned China's shifting its soybean purchases to South America from US farmers.

In his Friday statement, Trump hinted that he will cancel a meeting with Chinese President Xi Jinping on the sidelines of the upcoming Asia-Pacific Economic Cooperation summit in South Korea, though China has never confirmed that such a meeting would take place.

US markets plunged on the Trump announcement, with the broad S&P 500 index and the tech-heavy Nasdaq posting their steepest one-day declines since Trump first announced global tariffs in April. Gold surged 1.6 percent to US$4,035,50 an ounce.

There has been no comment from China yet.

Venezuelan Opposition Leader Wins Nobel Peace Prize

Venezuelan pro-democracy activist Maria Corina Machado won the 2025 Nobel Peace Prize for her efforts in uniting the opposition to call for free and fair elections after President Nicolás Maduro retained power in a rigged vote. The Nobel committee cited her "steadfast" commitment to a democratic transition.

Machado, who has been forced into hiding after being barred from running in last year's election, expressed shock at the announcement. The UN Human Rights Office welcomed the decision, stating that the prize reflects the "clear aspirations of the people of Venezuela for free and fair elections, for civil and political rights and for the rule of law."

The White House said President Donald Trump called Machado to congratulate her but called the decision "politics over peace." Trump has been lobbying to win the prize himself. Putin said after the award was announced that Trump deserved the prize, a statement Trump posted on his social media site.

French déjà vu: Macron Reappoints Lecornu as Premier

In a surprise move, French President Emmanuel Macron reappointed Sebastien Lecornu as prime minister, just days after he resigned. Lecornu now begins the process again of forming a new government after the last one he cobbled together lasted less than a day. There was no indication why Macron or Lecornu thinks another attempt will be more successful in ending parliamentary paralysis over how to tackle a budget deficit crisis. Macron has had five prime ministers in two years.

Gaza Ceasefire Begins, Palestinians Begin Returning North

The guns fell silent over Gaza as a Trump-brokered ceasefire came into effect and tens of thousands of displaced Palestinians began streaming back to homes in the north. The clock is ticking for Hamas to release the remaining Israeli hostages by Monday noon, local time. The Israeli military confirmed that its forces have pulled back to agreed-upon lines, though it said it remains on alert to "remove any immediate threat." The first phase of the complex peace agreement calls for the release of all remaining Israeli hostages – both living and dead – in exchange for hundreds of Palestinian detainees held in Israeli prisons. It also calls for an immediate resumption of humanitarian aid to the war-torn enclave.

Russian Air Strikes Injure 20 in Kiev, Cause Power Outage

An overnight barrage of 465 Russian drones and 32 missiles struck Kiev early yesterday, wounding at least 20 people and plunging Ukraine's capital into darkness.

The attack targeted critical infrastructure, according to Mayor Vitali Klitschko. Fragments from downed projectiles hit buildings, with images showing firefighters battling blazes in residential areas. Ukraine air defense systems downed 405 incoming drones and 15 missiles.

Japan's Junior Coalition Partner Breaks With Government

Komeito, the junior partner of Japan's coalition government for 26 years, broke with the majority Liberal Democratic Party, casting doubt on whether the new Liberal Democratic leader Sanae Takaichi can secure enough votes to become the country's first woman prime minister. The rupture came after the Liberal Democrats refused to accept Komeito's proposed stricter limits on political donations to limit the influence of big business. The Liberal Democrats will now have to try to form a coalition with smaller parties. Takaichi last week was elected to replace party leader Ishiba Shigeru, who is stepping down as prime minister after election defeats that left his coalition government without a majority in both houses of parliament.

Philippine Struck by Second Major Earthquake in Two Weeks

A 7.4 magnitude earthquake struck off the eastern coast of Mindanao island in the Philippines, with damage reported in the city of Davao about 80 kilometers inland. A tsunami alert was issued for parts of the Philippines and Indonesia but later lifted. A 6.9 magnitude quake two weeks ago off the island of Cebu killed 79 people.

Top Business

China Launches Antitrust Probe into Qualcomm's Autotalks Deal

China regulators said they have launched an antitrust investigation into Qualcomm's acquisition of Israeli chipmaker Autotalks. The probe by the State Administration for Market Regulation focuses on allegations that US-based Qualcomm failed to properly declare the deal as a "concentration of undertakings," a potential violation of China's Anti-Monopoly Law. Qualcomm shares dropped 7.3 percent in New York.

The US tech giant, which supplies chips to Chinese companies that include Xiaomi, completed the acquisition of Autotalks in June. The Israeli company makes so-called "vehicle to everything" communications chips. Qualcomm said it is integrating that technology into is Snapdragon car stack, just as China is standardizing vehicle-to-everything communication across pilot regions. Qualcomm earned 46 percent of its fiscal 2024 revenue from customers in China.

SoftBank to Use Arm Shares to Back Loan for Investment in OpenAI

Japanese holding company SoftBank Group is reportedly nearing a deal for a US$5 billion margin loan to fund increased investment in US AI leader OpenAI. The loan will be backed by shares in its semiconductor subsidiary Arm Holdings, bringing to US$18 billion total SoftBank debut using the unit's shares as collateral. SoftBank announced in April that it will invest up to US$30 billion in OpenAI. Its shares have surged 160 percent this year, while Arm shares are up 38 percent.

US Agency Warning Hits China's Contec Medical

China's Contec Medical Systems said it received a warning letter from the US Food and Drug Administration over alleged quality control violations at its Qinhuangdao manufacturing site, potentially threatening its access to the American market. An FDA inspection in June found Contec's medical devices for export to the US failed to meet federal requirements. The FDA said it will block imports from the company until the issues are addressed. The US market accounted for about 19 percent of Contec's revenue in the first half of 2025.

Economy & Markets

China Revises Qualifications for NEV Tax Exemptions

After halving 2026 tax exemptions on purchases of electric and hybrid cars, Chinese authorities have revised the technical requirements for qualification to include driving range and energy efficiency. The new rules state eligible plug-in hybrid models must have the ability to travel 100 to meet national standards released in May. The proportion of new energy vehicles on the road in China is expected to reach 50 percent of all cars by year's end.

China Tightens Rules on Recycled Paper Pulp Imports

China issued new rules on imports of recycled paper pulp to curb disguised foreign garbage shipments. Importers must now specify if recycled pulp is produced using a dry method or a wet method. Standard waste paper pulp production requires purification processes, including removing of impurities and screening of liquid conditions of waste paper, followed by concentration, steam treatment, and high-temperature drying. Recycled pulp boards produced through these processes contain over 91.5 percent fiber and almost no impurities.

Senate Passes Bill Giving US Companies Priority Over China in Chip Sales

The US Senate passed a bill on Thursday that would force US chipmakers like Nvidia and Advanced Micro Devices to put American companies at the front of the line before Chinese companies in accessing their products – a measure opposed by the technology industry. A similar bill passed the House last month, meaning that both chambers must negotiate and pass a compromise version before it can be sent to the president for his signature.

Deep Dive

Calm Before the Storm? Chinese Markets Slip Even Before US Trade War Flares Anew

Chinese shares in New York dived in an omen of what's ahead after US slaps new 100 percent tariffs on Chinese imports and tightens exports controls on software.

Corporate

Eastroc Beverage Applies for Listing in Hong Kong

Shenzhen-based energy drinks maker Eastroc Beverage has filed a prospectus for an initial public offering in Hong Kong. The company, listed on the Shanghai stock exchange, posted net profit of 3.3 billion (US$463 million) on revenue of 15.8 billion yuan last year. It holds about a 26 percent share of the market in China, ranking among the top 20 publicly traded soft drink companies in the world. The company didn't disclose how much it will seek to raise in the IPO. Founded in 1994, the company sells vitamin energy and electrolyte beverages, Chinese-style teas, coffee and coconut milk.

Seres, ByteDance Unit Team Up on AI Robotics

Chinese automaker Seres Group signed a framework agreement with ByteDance's Volcano Engine Technology cloud and AI arm for joint development of humanoid and next-generation robots. Under the deal, the two companies will collaborate on multimodal, cloud-edge coordinated technologies for intelligent decision-making, control and human-machine interaction in auto production. Volcano Engine will contribute its expertise in language, vision and AI models, while Seres will leverage its manufacturing and industrial experience to commercialize innovations.

Consortium to Buy Battery-Component Supplier Shanshan

A consortium led by Chinese shipping tycoon Ren Yuanlin will acquire Shanghai-based Shanshan Corp, a leading Chinese supplier of lithium battery components, for 3.2 billion yuan (US$450 million) as part of a court-ordered restructuring of debt-ridden parent Shanshan Group. The parent fell into difficulties after a family death triggered financial disputes that led to debt defaults. Other investors in the reorganization include a TCL-controlled fund and the Shenzhen branch of China Orient Asset Management.

Tianhe Magnetics to Invest in Factory Expansion

Baotou-based Tianhe Magnetics Technology, a maker of rare earth magnets critical in industrial production, said it will invest 900 million yuan (US$126 million) to expand capacity and meet rising global demand. Rare earth permanent magnets are used in computer hard drives, wind turbines, headphones, cordless tools and other products.

Wahaha Heiress Zong Fuli Steps Down Amid Family Inheritance Feud

Zong Fuli, one of China's wealthiest women, has resigned from her posts as legal representative, director and chairwoman of Wahaha Group, the country's largest beverage producer, founded by her late father. The resignation comes as Zong is embroiled in a high-stakes inheritance dispute with three individuals who claim to be her father's illegitimate children. The family controversy, which erupted following the death of patriarch Zong Qinghou in February 2024, focuses on the distribution of his estate, particularly his offshore assets. A key element of the dispute involves offshore assets believed to be linked to a trust her late father intended to establish. A Hong Kong court has reportedly frozen these assets, which are estimated to be worth up to US$1.8 billion.