Top News
Trade talks and deals take center stage
The US and China confirmed a new round of trade talks will take place in Stockholm on July 27-30. Chief negotiators Vice Premier He Lifeng and US Treasury Secretary Scott Bessent are expected to discuss a range of issues.The current truce suspends most heavy bilateral tariffs and has paved the way for some concessions on trade barriers.
Completed US trade deals with other countries are starting to emerge as an August 1 deadline set by President Donald Trump looms. Yesterday, he announced agreements struck with Japan and the Philippines, along with details of an earlier pact with Indonesia. The Japan deal involves US tariffs of 15 percent; Manila and Jakarta deals impose 19 percent US tariffs.
All eyes on now on the EU and India, which have yet to reach agreement on new trade deals. Trump has threatened steep tariffs if deals aren't concluded by August 1, though China has been exempted.
Global aid agencies denounce 'mass starvation' in Gaza
More than 100 aid agencies, including Save the Children, Oxfam and Médecins Sans Frontières, released a joint statement warning that "mass starvation" is spreading across Gaza and accusing Israel of a maintaining a siege against food reaching the hungry. The health ministry in Gaza said that 33 people died of starvation in 48 hours. The World Health Organization said a quarter of the population is facing famine. Hundreds of people trying to reach food distribution centers have been killed by Israeli forces in the past two months. Earlier this week, the UK, France and 26 other countries condemned Israel for "drip feeding aid and inhumane killing of civilians." Israel accused them of being misinformed.
Russia-Ukraine talks make no progress on ceasefire
The third round of direct talks between Russia and Ukraine in Istanbul produced another agreement on prisoner swaps but no progress toward a ceasefire. The meeting lasted less than an hour. President Donald Trump has given Moscow a 50-day deadline to make peace or face "very severe tariffs."
India resumes China visas
India will resume issuing tourist visas to Chinese citizens this month, ending a five-year freeze imposed after a 2020 border skirmish. The move, announced on Wednesday by the Indian Embassy in Beijing, marks a step toward repairing strained relations.
Top Business
Tesla quarterly profit tumbles, Alphabet beats expectations
US-based Tesla, a major player in the electric-car market in China, posted 16 percent declines in second-quarter net income and auto revenue – its worst result in almost 10 years. Net fell to US$1.2 billion from a year earlier, overall revenue slipped to US$22.5 billion from US$22.7 billion, and auto revenue came in at US$16.7 billion. The company, which owns the X social media platform and SpaceX program, was once the darling of the electric-car movement, but auto sales have suffered this year on competition from domestic carmakers in China and a backlash in Europe and the US to Chief Executive Elon Musk's buddy-buddy relationship with President Donald Trump, now ruptured. Tesla share tanked 3.7 percent after earnings were announced.
Separately, Alphabet, owner of Google, beat analysts' forecasts with a 20 percent rise in second-quarter profit to US$28.2 billion on a 14 percent increase in revenue to US$96.4 billion. The company said it is increasing spending on artificial intelligence to US$85 billion this year. Its shares rose 3.3 percent.
US automakers question logic of lower tariffs on Japanese vehicles
The Big 3 US automakers, General Motors, Ford and Chrysler parent Stellantis voiced concerns that a new US trade deal that lowers auto exports from Japan to 15 percent while leaving a 25 percent
tariffs on imports from neighbors Canada and Mexico. "Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high US content is a bad deal for the US industry," the carmakers said in a statement.
Meanwhile, shares of Japanese automakers surged on news that their exports to the US will be charged lower duties. Toyota closed up 14 percent, and Honda rose 11 percent. Japanese Prime Minister Shigeru Ishiba denied media reports that he plans to resign next month, following a bruising defeat in upper house elections on Sunday and concerns that he gave away too much in a US trade deal that leaves a 15 percent tariff on all Japanese exports to the US and opens the Japanese rice market to US imports.
Economy & Markets
Hydropower stocks surge on mega-dam project
Shares of Chinese companies that stand to benefit from the massive Yarlung Zangbo River hydropower project continued to rally on Wednesday. The 1.2 trillion yuan (US$167 billion) dam in southwestern China is the world's largest hydroelectric project. Among construction and equipment suppliers, Shenzhen Water Planning & Design Institute shares surged 20 percent, Dayu Irrigation Group climbed 13.4, and Power Construction Corp of China and Dongfang Electric each rose 10 percent.
Shanghai posts record quarterly trade
Shanghai posted record second-quarter international trade on a surge in technology exports. Trade rose 7.2 percent from a year earlier to 1.14 trillion yuan (US$159 billion), according to local customs, after dropping 2.7 percent in the prior three months. For the first half of 2025, trade totaled 2.15 trillion yuan, with technology exports accounting for a quarter of the city's total.
Hainan to expand zero tariffs on imports
Zero-tariff items will increase to 74 percent from 21 percent of goods coming into the southern island province of Hainan when the duty-free port expands independent customs operation island-wide in December, the National Development and Reform Commission announced. The port also announced a pilot project that will enable overseas investors to access financial products offered by local financial institutions.
Panda bonds oversubscribed
The recent 2 billion yuan (US$278.8 million) issue of panda bonds by the Asian Infrastructure Investment Bank was more than three times oversubscribed, setting a record for the project lender. The two-year, yuan-denominated notes carry a coupon rate of 1.64 percent. The bank has sold seven tranches of panda bonds in the interbank market to date, raising a combined 16.5 billion yuan.
Asian Development Bank lowers growth forecasts
The Asian Development Bank lowered its 2025 growth forecast for the Asia-Pacific region to 4.7 percent from 4.9 percent and trimmed its projection for next year to 4.6 percent, citing US tariffs and trade uncertainties. Southeast Asia is forecast to have the slowest growth, now projected at 4.2 percent this year and 4.3 percent in 2026.
Corporate
Antitrust probe of DuPont China suspended
China's State Administration for Market Regulation said in a statement on Tuesday that it has suspended an antitrust investigation into DuPont China, a subsidiary of the multinational US chemicals company DuPont. What may be a goodwill gesture comes ahead of US-China trade talk scheduled to resume in Stockholm next week.
Chinese tech, auto companies move up ranks of Fortune 500 list
Technology giants JD.com and Alibaba, and automakers BYD and Geely were among the Chinese companies that climbed corporate revenue rankings in the latest Fortune China 500 list. JD rose two rungs to 11th place; Alibaba, three to 18th; and Tencent, six to rank 32nd. PDD Holdings, Meituan and Xiaomi ranked in the top 100. Bilibili was the only Chinese Internet firm to debut on the list.
In the auto industry, BYD rose to 27th from 40th place. Geely took 41st place, rising from 54th. Further down the list, Seres, the auto production partner of Huawei Technologies, rose to 169th place from 404th, and Li Auto climbed 13 places to rank at 171.
Wanhua shares rise on fire at rival's factory
Shanghai-listed shares of Wanhua Chemical, the world's largest supplier of toluene diisocyanate, rose for three days after a fire at German rival Covestro's plant disrupted supply, sending China prices of the chemical used in polyurethane foams as high as 15,900 yuan (US$2,217) a ton. Covestro announced on July 16 that the fire halted production at its main plant in Germany, which has an annual production capacity of 300,000 tons of toluene diisocyanate.
Xreal begins sales of new AR glasses
Xreal, a Chinese maker of augmented reality glasses and partner of Google Glasses, began sales of its Xreal One Pro in China, priced at about US$600. More than 26,000 units were ordered on the JD.com platform. Xreal will open its new headquarters in Shanghai next month.
Coca-Cola credits China business for quarterly revenue rise
Coca-Cola reported second quarter revenue rose 1 percent to US$12.5 billion, citing a strong performance in China that offset weakness in other markets. The company said it will launch a drink version using sugar cane instead of corn syrup, responding to Trump administration claims that cane sugar is healthier.
New plush toys from Letsvan debut
Trendy toy brand Letsvan, part of US-listed QuantaSing, has launched a new series of Siinono blind boxes of plush toys at the Miniso flagship store in Shanghai and across 12 other Chinese cities, selling thousands on the first day in Shanghai.