Top News
US announces Japan trade deal with 15 percent tariffs
US President Donald Trump announced a trade deal with Japan that imposes 15 percent tariffs on its exports to the US. He also said Japan, under the deal, has agreed to invest US$550 billion in the US and to open its economy to imports of US vehicles and rice.
Automobiles, a cornerstone of Japanese exports, already attract a 25 percent tariff Trump imposed on all global imports of cars, and there was no mention of any change in those duties. The announcement of the new trade agreement comes days after Japanese Prime Minister Shigeru Ishiba's governing coalition lost its majority in the country's upper house elections, which some analysts said might weaken Japan's negotiating position.
China, US to discuss extension of trade war truce
US Treasury Secretary Scott Bessent said he will meet with China trade negotiators next week in Stockholm to discuss a possible extension of a 90-day truce in their bilateral trade war, due to expire on August 12. The truce involves suspension of most heavy tariffs the world's biggest two economies had imposed on one another. Some trade barriers have since been eased, including US chip exports to China and Chinese shipments of rare earth minerals to the US. China has not responded to the overnight announcement.
Ukraine says talks with Russia to resume
Russia and Ukraine will hold a new round of talks in Turkey on Wednesday, Ukraine President Volodymyr Zelensky said. It would be the first meeting in seven weeks. Previous talks have resulted in some prisoner exchanges but no progress on a 30-day ceasefire proposed by the US. US President Donald Trump has threatened "severe sanctions" on Russia if there is no ceasefire within 50 days. Ukraine has agreed to a ceasefire; Russia has not.
WHO says Israeli attacked Gaza facility
The World Health Organization said the Israeli military attacked its staff residence and main warehouse in a ground assault on the central Gazan city of Deir al-Balah, with male staff stripped, searched at gunpoint and interrogated on site. One WHO staffer remains in detention. Israel said its soldiers were responding to shots fired at them.
US media are reporting that President Donald Trump has been caught off-guard by Israeli attacks in Gaza and Syria in the past week and phoned Prime Minister Benjamin Netanyahu to express his displeasure, especially focusing on recent deadly strikes that Israel called mistakes.
Trump pulls US out of UNESCO and other UN agencies
President Donald Trump pulled the US out of UNESCO for a second time. He withdrew US membership during his first term in office, but that decision over reversed by his successor Joe Biden. The Trump administration has accused the UN's cultural and education arm of anti-US bias. Trump also signed an executive order withdrawing from the UN Human Rights Council and the UN agency for Palestinian refugees.
Top Business
Exit of SpaceX?
The Trump administration is searching for new partners to build the Golden Dome missile defense system, including Amazon's Project Kuiper and big defense contractors, as tensions with Elon Musk threaten SpaceX's dominance in the program, according to Reuters. The shift marks a strategic pivot away from reliance on Musk's SpaceX, whose Starlink and Starshield satellite networks have become central to US military communications.
Eatery chains lose as consumers put price over taste
Chinese restaurant chains are feeling the pinch of tighter consumer spending and the growing popularity of fast-delivery online food services. Some have shut outlets; others have lowered prices.
Lalengmen Clear Oil Hot Pot closed six stores in the first half, with founder Zhu Guo telling Yicai that customers are more concerned about price than taste. Din Tai Fung, a chain that specializes in steamed buns and soup dumplings, closed its last restaurant in the city of Ningbo. Burger King China said last month that it would close underperforming outlets this year. Beijing roast-duck chain Quanjude said net profit for first half may drop to a maximum 14 million yuan (US$1.5 million) from 29 million yuan a year earlier.
Cruising for a bruising: the backlash against overtourism
The US$72.5 billion global cruise-ship industry is facing a backlash from residents in ultra-popular destinations who are fed up with teeming crowds of visitors that they say clog streets and walkways, degrade the environment and make local housing more unaffordable. Barcelona is the latest city to try to curb overtourism, closing two of its port terminals. Last year, angry residents made world headlines by firing water pistols at holiday-makers. Barcelona is the biggest cruise-ship port in Europe, disgorging 1.6 million passengers last year. Greece last month rolled out a tourism fee on disembarking cruise passengers. Venice, which has banned cruise ships in popular canals, also doubled its daily tourist tax, and Cannes on the French Riveria recently outlawed mooring of ships carrying more than 1,000 passengers, cutting cruise dockings by half.
Economy & Markets
Lithium-ion battery exports surge
China's lithium-ion battery exports in the first half surged 25 percent from a year earlier to a record US$34.1 billion, according to customs data. The jump marks a turnaround from 2024, when such exports fell nearly 6 percent. The batteries, used in electric vehicles, energy storage systems and consumer electronics, are a bellwether for China's green tech exports. Germany overtook the US as China's top buyer, ending America's five-year lead, while Vietnam and the Netherlands also climbed in the rankings.
Net inflow of foreign capital
China's non-bank sector recorded cross-border capital inflow of US$127.3 billion in the first half, extending the net inflow trend that began in the second half of last year, the State Administration of Foreign Exchange said. About half of cross-border receipts and payments were denominated in yuan.
China starts production at offshore oilfield
China's Kenli 10-2 oilfield project in Bohai Bay started production, China National Offshore Oil Corp said on Tuesday. It is the nation's largest shallow-layer lithologic offshore oilfield, at an average water depth of around 20 meters. The oilfield has proven reserves exceeding 100 million tons.
Corporate
Sinopep-Allsino Biopharma fined for falsifying earnings
Sinopep-Allsino Biopharmaceutical, a leading Chinese supplier of ingredients for drugs used to treat Type-2 diabetes and obesity, was fined 47.4 million yuan (US$6.6 million) by China's securities regulator for falsifying its annual financial results last year, including fake profits of 26 million yuan. It was slapped with a delisting warning. The company's shares on Shanghai's STAR markets plunged 4.3 percent on Tuesday after resuming trading from a one-day suspension.
The restaurant with no seats
Chinese e-commerce giant JD.com opened its first self-operated restaurant that offers only food delivery and pick-up services, with no dine-in option. The new business model, called JD Takeaway, began with 7Fresh Kitchen in Beijing, which received 800 orders on opening day. Food is available only on JD's food delivery app, with prices ranging up to 30 yuan (US$4.20) a dish. JD is involved in a fast-delivery food war with Alibaba's Ele.me and Meituan.
Xizang brewer eyes takeover
Tibet Development Co said it plans to acquire the 50 percent stake held in struggling Lhasa Brewery by Denmark's Carlsberg, the world's fourth-largest brewer. The purchase would consolidate control over the joint venture and resolve years of shareholder disputes. Shenzhen-listed shares of Tibet Development rose 5 percent on the news.
US tariffs hit GM
Shares in General Motors, the largest US automaker by sales, plunged 8.1 percent in New York after the company reported a US$1 billion hit from President Donald Trump's tariff policies in second-quarter earnings.
Daijin secures wind project contract in Europe
Daijin Heavy Industry, which supplies structural components for wind-energy projects, said it won a 430 million yuan (US$60 million) contract from a European offshore wind farm, its third such deal this year. The Shenshen-listed company didn't disclose the name of the client. Daijin shipped windmill gear to the UK, France, Denmark, Germany and others countries last year, with overseas commerce contributing about 46 percent of its 3.7 billion yuan of revenue.
Chinese frozen food maker to build Australian factory
Shenzhen-listed Sanquan Food, which makes frozen food products, said it will invest A$280 million (US$182.5 million) to build a production facility in Australia. The company didn't say whether Australian output will go beyond its signature Chinese-style food. Australia is home to more than 650,000 Chinese and Mandarin is the second-most spoken language. Last year, Sanquan produced 637,000 tons of quick-frozen food products.