Top News
China rejects US tariff threat on imports of Russian energy
China on Monday condemned recent US statements urging Group of 7 nations and NATO members to impose tariffs of up to 100 percent on China over its purchase of Russian oil and gas. Foreign Ministry spokesperson Lin Jian described the actions as "typical unilateral bullying and economic coercion," warning that such pressure threatens global supply-chain stability. President Donald Trump has said foreign purchases of Russian energy fund the war in Ukraine and punishing countries involved in the trade will force the Kremlin to negotiate an end to war. Trump has already imposed a special 25 percent tariff on India over its imports of Russian oil. China and India are the two biggest buyers of Russian energy. Lin reiterated Beijing long-held position on the Ukraine conflict, saying dialogue and negotiation are the only viable solutions to ending it. "Coercion wins no support and solves nothing," he said.
Trump begins state visit to UK, Starmer seeks reset from political woes
US President Donald Trump begins a state visit to the UK on Wednesday, where more than US$10 billion in business deals are expected to be announced. The visit will include royal pomp, with a state banquet at Windsor castle. It comes as Prime Minister Keir Starmer is under political pressure following the exit of his deputy for ethical violations, the sacking of his ambassador to the US over his ties to former convicted pedophile Jeffrey Epstein, and the nation's budget woes.
China promotes reforms toward a national unified market
Chinese president Xi Jinping published an article in Qiushi magazine on advancing a national unified market. The idea of a unified market aims to remove regional impediments and establish an open market system. The idea, first raised in 2013, gained momentum in 2022 when authorities issued guidelines calling for accelerated progress. In the article, Xi stresses the importance of creating a new market framework to promote high-quality development. He emphasized the need to rein in disorderly price wars, promote the "orderly exit" of overcapacity, improve fiscal and statistical systems, and refine credit mechanisms.
US strikes a second Venezuelan ship allegedly carrying drugs to US
President Donald Trump said the US military destroyed a Venezuelan drug vessel travelling in international waters to the US, killing three "narco-terrorists." He provided no evidence that the boat was carrying drugs. It follows a similar incident two weeks ago, when US naval ships opened fire on an alleged Venezuelan drug ship, killing 11. Venezuelan President Nicolás Maduro called the US actions "aggression." His government earlier denied the first ship was carrying illicit drugs.
Top Business
China accuses Nvidia of violating anti-monopoly laws
China's market regulator on Monday said a preliminary probe found that US chipmaker Nvidia violated the country's anti-monopoly laws, adding that the investigation will continue. China's State Administration for Market Regulation opened the probe related to Nvidia's 2020 acquisition of Israeli-based network-gear maker Mellanox. It didn't give details of the alleged breaches.
Nvidia was a major supplier of AI chips to China until the Trump administration banned its exports earlier this year amid a trade war with China. Though exports on some less-advanced chips have been reinstated, the US company has encountered difficulties in re-entering the market, especially after Chinese officials questioned whether its China-specific H20 chip had installed "backdoors" that could compromise Chinese user data and privacy.
Zijin Gold moves toward what could be world's second-largest IPO this year
Zijin Gold International, the offshore unit of Zijin Mining Group, China's largest miner, said in its prospectus for an initial public offering in Hong Kong that it's the fastest-growing gold producer in the world, with annual output increasing an average 21 percent between 2022 and 2024. The IPO is expected to raise at least US$3 billion, which would make it the world's second-biggest share sale this year after battery-maker Contemporary Amperex Technology's debut on the Hong Kong exchange. Zijin Gold holds all its parent's overseas mining operations, with an estimated 26 million in reserves spread across mines in central Asia, Australia, Africa and South America. Amid surging global gold prices, parent Zijin Mining posted record first-half net profit of 23.3 billion yuan (US$3.3 billion), up 54 percent from a year earlier. Revenue rose 11.5 percent to 167.7 billion yuan.
Trump seeks to assure investors that foreign labor is welcome
President Donald Trump said foreign workers sent to the US are "welcome" and he doesn't want to "frighten off" investors, 10 days after images showing hundreds of South Korean workers at a US Hyundai factory in handcuffs and being bundled out of the country. Immigration officials said those arrested had overstayed their visas or were employed in violation of permits, but the biggest industrial raid against foreign labor under the Trump administration sent chills through some Asian countries that have been big investors in the US.
Economy & Markets
China's retail sales, industrial output post slower gains
China's retail sales in August grew a weaker-than-forecast 3.4 percent to a nine-month low, and industrial output growth slowed to a 12-month low of 52.2 percent from a 5.7 percent gain in July. In a raft of economic data released by the National Bureau of Statistics, fixed-asset investment in the first eight months grew 0.5 percent after 1.6 percent growth in the January-July period.
Investment in real estate in the eight months fell 12.9 percent. Declines in prices of residential housing stabilized in August, but home resale prices fell lower. Fixed investment in manufacturing rose 5.1 percent in the January-August period, and investment in utilities surged 18.8 percent.
Urban unemployment notched up to 5.3 percent in August from 5.2 percent in July. Online sales, comprising a quarter of consumer goods sold, increased 9.6 percent in the first eight months to 10 trillion yuan (US$1.4 trillion). Bureau spokesperson Fu Linghui said the overall economy in August was stable, despite headwinds.
CATL shares in HK surge on bank upgrade
Contemporary Amperex Technology (CATL) shares surged 7.4 percent to a four-month high of HK$465 (US$59.77) in Hong Kong after US investment bank JPMorgan Chase upgraded its outlook on the battery maker, predicting stronger demand for its energy-storage business. The price rise widened the premium to its shares traded on the mainland's Shenzhen exchange, which closed at 354 yuan (US$49.71).
US Fed meets in a fraught atmosphere
The US Federal Reserve began a widely watched two-day monthly meeting amid President Donald Trump's attempt to oust one of its board members, hasty Senate attempts to fill a separate vacancy with an administration-friendly governor, and expectations that the central bank may finally cut rates by at least a notch. The Fed has held off a rate cut in recent months out of concerns about how Trump's global import tariffs might affect prices, but recent data showed benign inflation and a worsening jobs market. The Fed traditionally announces its decisions on Wednesday, US time.
Corporate
Xiaomi's next smartphone series to skip a digit, challenge Apple
Xiaomi, a major domestic rival of Apple, will skip the number 16 and call its next flagship smartphone series Xiaomi 17 to rival the iPhone 17 series unveiled by Apple last week, Chairman Lei Jun said on the social media platform Weibo. The Xiaomi 17 series will be released this month, a month earlier than last year's launch of the Xiaomi 15 series, hoping to dent Apple's lead. Preorders for the iPhone 17 have begun, with some reports of brisk business, with deliveries scheduled to start on September 19.
Robotic startup secures major funding
Robotis startup RobStride Dynamics completed two consecutive pre-Series A funding rounds totaling several tens of millions of yuan, the company said, without disclosing the exact amount. The financing was led by Sequoia Seed Fund, with participation from Highlight Capital and Xingniu Capital. Founded in November 2023, RobStride focuses on integrated joint modules for robot. Chief Operating Officer Shao Yuanxin said the funding will expand production capacity, support global localization, and develop new products. RobStride's co-founders, all former Xiaomi engineers, leverage deep experience in joint motor systems and robotics commercialization.
Tesla gets a vote of confidence from founder Musk
US electric carmaker Tesla, which has been losing its market share in China and other countries, got a boost of confidence from founder and chairman Elon Musk, who bought about US$1bn of company shares, adding to his 13 percent stake in Tesla. The company's board recently offered Musk a bonus package valued at about US$1 trillion if the company's shares reach a certain target. Tesla stock rose 3.6 percent on Monday to its highest level for the year.
TCL unit to build factory for printed OLED panels
TCL China Star Optoelectronics Technology, a leading maker of liquid crystal displays, said it will spend 29.5 billion yuan (USD$4.1 billion) to build a factory in Guangzhou to make printed organic light-emitting diode (OLED) panels. The unit of parent TCL Technology will own 60 percent of a venture with companies owned by the Guangzhou municipal government. The new plant will have monthly processing capacity of 22,500 glass substrates, Yicai reported. Construction is expected to start in November. Printed OLED panels, compared with standard ones, provide richer color and higher resolution.
Xpeng begins production in Austria
Leading Chinese electric carmaker Xpeng began production at a factory in Austria, where it will assembly its G6 and G9 SUVs. The plant, under a partnership with Austria's Magna Steyr, is part of the company's expansion in Europe.
Huawei-BAIC venture announces hefty investment
Stelato, the Chinese new energy vehicle brand co-developed by Huawei and BAIC Group, will invest 20 billion yuan (US$2.8 billion) over the next three years in design, intelligent-assisted driving, smart cockpits and safety features, the partners said at a press conference.