Top News
Chinese president meets EU leadership
Chinese President Xi Jinping told top EU officials attending a one-day summit in Beijing that China and the EU must provide more stability in the world through sound bilateral relations, making "correct strategic choices" to strengthen communication, enhance mutual trust and deepen cooperation. He met with Ursula von der Leyen, president of the EU Commission, and EU Council President Antonio Costa.
The summit, marking 50 years of bilateral diplomatic relations, focused on trade imbalances, market access and rare earth mineral exports, according to EU officials. Von der Leyen said she is certain both sides can "advance and rebalance our relationship," which she termed "one of the most important and consequential in the world." China was the EU's third-largest trading partner in 2024, with bilateral trade in goods and services totaling US$666 billion, according to the EU Directorate-General for Trade.
France to recognize Palestinian state
President Emmanuel Macron said France will formally recognize a Palestinian state in September, joining more than 140 UN members, including Spain, to do so. Israel called the decision a disgrace and said it rewards terrorism. Macron, in an online statement, said there is an "urgent need to end the war in Gaza and for the civilian population to be rescued." Hopes for a two-state solution to end the Israel-Palestinian conflict have receded. The US and Israel withdrew their negotiators from talks on a ceasefire, accusing Hamas of bad faith.
EU may accept tariffs in US trade deal
The EU may agree to a trade deal with the US that includes a 15 percent tariff on EU exports to the US to avoid the 30 percent tariff President Donald Trump threatens to impose on the bloc if no deal is reached by August 1, Reuters reported, citing European diplomats. Like the deal reached with Japan earlier this week, the 15 percent tariff would include autos, which now are under 25 percent tariffs. The report said the deal could include duty concessions in some sectors, including aircraft, timber and medicine. The agreement would be the latest in a series where trading partners seem relieved to accept tariffs that are below Trump's threatened levels.
Thailand, Cambodia border dispute erupts in clashes
Fighting broke out in a long-running border dispute between Thailand and Cambodia, with 12 people killed, mostly Thai civilians. Each side accused the other of starting hostilities. Bangkok accused Cambodia of firing rockets into a Thai border village and sealed the border with its neighbor. Thailand deployed fighter jets, attacking Cambodian military targets.
Top Business
Chinese corporations tap capital markets
Shanghai-based Bright Food raised 800 million euros (US$868 million) via the issue of five-year, senior unsecured sustainability bonds. It's the largest euro-denominated bond issuance by a Chinese corporate since February 2022. It was company's first return to international debt markets in five years. The bond was oversubscribed 6.1 times. The company said it will use the bond proceeds to support overseas operations.
Elsewhere, AI company SenseTime said it is raising HK$2.5 billion (US$318 million) through the sale of 1.7 billion new shares with unidentified investors. The proceeds will be used to support research and development of artificial intelligence models. Dairy giant Mengnui said it will issue 2.5 billion yuan (US$489 million) in bonds to refinance debt. UBTech Robots unveiled plans for a HK$2.4 billion share placement to support business operations, repay loans and invest in product development.
US takes aggressive step for AI dominance
The Trump administration unveiled a 28-page action plan that it says will push the US to the forefront of artificial intelligence development and counter China's dominance. It includes easing environment regulations to fast-track construction of AI data centers and imposing export controls on some US-made AI equipment to "countries of concern." In announcing the plan, President Donald Trump said, "America is the country that started the AI race, and I'm here to declare that America is going to win it."
San Francisco-based AI startup Anthropic warned that the US is lagging far behind China in providing the massive amounts of electricity needed to power AI data centers, noting that China added 400 gigawatts of power capacity last year while the US added only a 10th as much.
Economy & Markets
Shanghai stock index tops 3,600
China's benchmark Shanghai Composite Index rose 0.6 percent on Thursday to close above the key technical level of 3,600 for the first time in three-and-a-half years, driven by gains in technology shares, lithium miners and companies that stand to benefit from work related to China's massive new hydroelectric project, the largest in the world. Volume on the Shanghai and Shenzhen exchanges surpassed 1.87 trillion yuan (US$258 billion). Nearly 4,400 stocks posted gains, with almost 80 hitting the daily limit of a 10 percent swing. Markets across the world have been rallying on hopes that emerging trade deals with the US may ease global trade tensions. The S&P 500 and Nasdaq closed at record highs in New York on Thursday.
Trump visits Fed, says he won't fire Powell
US President Donald Trump, in a rare presidential visit to the Washington headquarters of the Federal Reserve, said he won't fire Fed chair Jerome Powell, though he still wants the central bank to lower interest rates. Trump, who has constantly harangued Powell over rates, inspected the US$2.5 billion renovation of two Fed buildings, quibbling with Powell over the true cost. The White House has criticized the cost and management of the renovation, hinting it could be an excuse to fire Powell. The legality of a president firing a chairman of the independent bank is unclear.
China warns motorists against over-reliance on smart driving features
China's Ministry of Public Security said drivers of cars equipped with autonomous driving features will be fully liable for anything that happens when they are behind the wheel. The warning comes as China seeks to make clear that there are no approved, fully self-driving cars currently available to motorists. Drivers who take their hands off the wheel or eyes off the road while their cars are in smart driving mode face serious safety risks, the ministry said. China has been cracking down on carmakers that overhype smart driving features and lull motorists into a false sense of security.
Corporate
Amazon exits Shanghai lab
Amazon is closing its Shanghai artificial intelligence lab in the latest retreat by a US tech group from China. The lab, launched by Amazon Web Services in 2018, contributed to more than 100 academic papers and an open-source neural network framework that generated nearly US$1 billion in sales, according to team leader Wang Minjie. Wang confirmed the closure on social media, citing "strategic adjustments amid US-China tensions." Amazon follows IBM and Microsoft, which have scaled back China-based research as Washington heightens scrutiny of cross-border AI work.
Mitsubishi quits joint venture in China
Japanese carmaker Mitsubishi Motors has ended its engine joint venture with China's GAC Group, exiting its last manufacturing site in China. The venture, established in 1997, has been supplying engines to Mitsubishi-branded manufacturers and numerous Chinese automakers. At the height of operations, nearly a third of new cars made in China were equipped with the engines. Mitsubishi gave no reason for the termination.
SK Hynix profit surges on chip demand
South Korean chipmaker SK Hynix, a supplier to Nvidia, said revenue in the second quarter surged 35 percent to 22.2 trillion won (US$16.2 billion) from a year earlier, delivering a 69 percent surge in operating profit to 9.2 trillion won. The company attributed the strong results to demand for its high-bandwidth memory technology used in artificial intelligence chipsets and said it sees no signs of that demand diminishing this year.
Volant Aerotech inks deal to supply 'flying taxis' to Thailand
Shanghai-based Volant Aerotech signed a US$1.75 billion contract with Thailand's Pan Pacific to supply 500 electric, vertical take-off and landing aircraft, the largest order of its kind so far in the China's "low-altitude" industry. The "flying taxis" can be used for short hops and emergency rescue work. Each can carry up to five passengers for distances up to 400 kilometers at a cruising speed of 235 kilometers an hour. A partner in the deal, China National Aero-Technology International Engineering Corp will provide necessary ground infrastructure for the vehicles.
Alibaba launches 'breakthrough' coder
Alibaba Group launched its Qwen3-Coder, an open-source artificial intelligence model that matches or surpasses some of the most powerful products worldwide. The Qwen3-Coder's performance on the SWE-Bench, which evaluates models' ability to complete software engineering tasks, is comparable to the latest Claude 4 series from US AI startup Anthropic and outperforms OpenAI's GPT-4.1, Alibaba said, calling it a significant breakthrough.