Top News
China, US conclude third round of trade talks
The US should work with China to continue to reduce misunderstandings and deepen dialogue, Chinese Vice Premier He Lifeng said as a third round of trade talks between the world's two largest economies concluded in Stockholm. Both nations agreed to continue to seek an extension of their 90-day pause in reciprocal tariffs, which is due to expire on August 12. US Treasury Secretary Scott Bessent said the talks were "constructive."
Shanghai unveils ambitious AI funding
Shanghai unveiled a 1 billion yuan (US$139 million) subsidy program for its artificial intelligence industry as it seeks to become a global hub for AI ecosystems. The program is aimed at reducing costs for startups and easing the way for businesses to adopt AI solutions. Some 600 million yuan is earmarked for computing power, 300 million yuan for discounts on third-party AI models and 100 million yuan to help companies procure data collection to train new models. The city also said it will establish an AI "town" of industrial clusters that include lower rents for companies and staff. The plan was announced a day after the close of the World Artificial Intelligence Conference in the city and a week after the US announced a new plan to seek dominance in AI.
UK to recognize Palestinian state unless Israel alters course
Prime Minister Keir Starmer said the UK will recognize Palestinian statehood at a UN meeting in September unless Israel agrees to a ceasefire, ends the "appalling situation" on the ground in Gaza and commits to a two-state solution in the Middle East.
Israeli Prime Minister Benjamin Netanyahu said the decision rewards terrorism and punishes its victims. The UK announcement comes just days after France said it will recognize a Palestinian state. The UK and France would join 147 nations that already recognize Palestinian statehood, including China and most of Africa, South America and Asia.
In Israel, 13 high-profile figures – including academics, scientists, artists and former top officials – published a letter that calls on the international community to impose "crippling sanctions" on Israel, citing the horror of starvation in Gaza.
South Korea to court US with offer of shipbuilding ties
South Korean Finance Minister Koo Yun-cheol said his nation will propose a partnership in shipbuilding with the US as part of trade talks that resume in Washington on Tuesday. The proposal seeks to offer investments to modernize ageing US shipyards and help in repairing US naval vessels. The gambit plays to President Donald Trump's stated aim of undercutting the dominance of China, which is the world's biggest shipbuilder, followed by South Korea.
Top Business
India surpasses China in smartphone exports to US
India shot past China as the world's biggest exporter of smartphones to the US, according to research firm Canalys, largely after Apple shifted production to ease the impact of US tariffs. Indian assembly of digital handsets in the second quarter accounted for 44 percent of US phone imports, up from 13 percent a year earlier, while imports from China fell to 25 percent from 61 percent. Vietnam's exports of smartphone to the US also exceeded China's at 30 percent. The Trump administration isn't happy with corporate hopscotching as it continues to push for phone production to return to the US.
Singapore Air posts steep drop in profit
Singapore Airlines, often ranked among the best carriers in the world, said net income in its first quarter ended June 30 plunged 59 percent from a year earlier to S$186 million (US$144 million) on lower interest income and losses associated with its stake in Air India. Revenue rose 1.5 percent to S$4.79 billion. In the quarter, the airline carried a record 10.3 million passengers. Looking ahead, Singapore Air said the global airline industry faces a volatile operating environment.
Taobao Flash a magnet for merchants
Taobao Flash, Alibaba's new instant retail platform, is rapidly gaining popularity among merchants. Participating vendors rose 110 percent this month from June, adding over 12,000 stores. Smartphone maker Vivo joined with 1,500 stores, while sports retailer YYsports opened 1,200 shops. Liquor brand Moutai plans 1,000 stores by mid-August. The popular instant retailing market promises delivery of goods ordered online within 30 minutes. It is currently undergoing a fierce price war involving Alibaba, Meituan and JD.com
Economy & Markets
Morgan Stanley issues panda bonds
US investment bank Morgan Stanley issued 2 billion yuan (US$278 million) of panda bonds in China's interbank bond market, the first issue of its kind by a US-based company, the National Association of Financial Market Institutional Investors said. The five-year bonds carry a coupon rate of 1.98 percent and were fully taken up. Bond issues in the Chinese interbank market total 111.2 billion yuan this year.
Foreign direct investment slides, except in technology
Foreign direct investment in China in the first half fell 15.2 percent from a year earlier to 423.23 billion yuan (US$59 billion) but surged in technology sectors, according to the Ministry of Commerce. Investment in e-commerce services rose 127 percent; in pharmaceuticals, 53 percent; and in aerospace equipment manufacturing, 36 percent.
UBS curbs currency derivative sales
Swiss banking giant UBS ordered staff to scale back sales of complex currency derivatives after clients suffered steep losses after US President Donald Trump's announced global tariffs in May, the Financial Times reported. The dollar dropped as a result. Trump's blanket tariff regime has changed since it was first announced as countries sign new trade deals with the US that include varying sizes of import tariffs.
Asia coal price rises
Asia's coal price benchmark rose to a five-month high after summer heat waves boosted use of air conditioners and reduced inventories, Bloomberg reported. Australian Newcastle futures rose to U$115.50 per ton. Coal-fired power generation in Tokyo hit the highest level in 10 months last week amid unseasonally hot weather. Japan is a major importer of Australian coal.
Corporate
Changan spun off as independent carmaker
Chongqing-based Changan Automobile has been restructured as an independent automaker under the control of the central government, according to state broadcaster CCTV. The automaker, which sold 1.4 million cars in the first half, was spun off from state-owned China South Industries Group and will now focus on smart cars, robotics, "flying cars" and embodied artificial intelligent. It also will expand global markets. The restructuring is another step in the government's reform of state-owned companies.
Apple closes retail outlet in China
Apple said on its website that it is closing a retail store in China's northeastern port city of Dalian, the first closure of a directly managed outlet on the mainland. The decision to shutter the shop in the Parkland mall leaves Dalian, a city of 7.5 million residents, with only one remaining Apple outlet. Sales of iPhones have been struggling in a nationwide market in a market where Huawei commands top spot with an 18 percent market share, while Apple ranks fifth.
WuXi AppTec forecasts strong earnings
Biotech firm WuXi AppTec forecast its net profit will double and revenue will rise 21 percent in the first half. It also increased its outlook for full-year earning. Shares in the contract research and manufacturing drug company rose 7.7 percent in Shanghai and 11 percent in Hong Kong.
Starbucks sales in China edge up amid global decline
US coffee chain Starbucks, which is considering selling stakes in its China operations, posted a 2 percent drop in same-store global sales in its second quarter ended June 30 but said sales in China, its second-biggest market, rose 2 percent. Net revenue in the quarter rose 3.8 percent to US$9.46 billion. Starbucks has reduced some prices on the mainland as it fights increasing competition from domestic chains like Luckin Coffee and Cotti Coffee.
Nvidia places order for chips from TSMC
US-based chip giant Nvidia ordered 300,000 H20 chipsets from TSMC, Reuters reported, citing strong demand from China after the US lifted export controls. Nvidia developed the H20 chip specifically for the Chinese market to address US concerns about security risks. No value was given for the order.
Insta360 to unveil new drone brand
China's Insta360, which makes 360-degree cameras, said it will debut its new drone brand Antigravity next month, which will enable users to capture their surroundings from any angle with 8k resolution.