Top News
US trade war hits a BRICS wall
US President Donald Trump on Wednesday imposed an additional 25 percent tariff on imports from India for continuing to buy Russian oil. The new duty, which comes into effect in 21 days, is on top of an earlier 25 percent tariff on India. New Delhi called the decision "unfortunate." Trump is using the threat of higher tariffs on countries that buy Russian energy as a lever to force Moscow toward a ceasefire in the Ukraine war. India and China are the two biggest buyers of Russian energy. Last week, US Treasury Secretary Scott Bessent warned China that continued Russian oil purchases could trigger new tariffs.
Meanwhile US tariffs totaling 50 percent on imports from Brazil came into effect this week. Brazilian President Luiz Inacio Lula da Silva told Reuters that he sees no reason to "humiliate" himself by seeking direct talks with Trump. Half of the tariff on Brazil is related to its refusal to end the trial against former right-wing president Jair Bolsanaro, who is accused of plotting a coup. Bolsanaro is a friend of Trump's.
The US global trade war has largely narrowed to a standoff with the BRICS group of developing economies, where leaders have pushed back on Trump bullying. The group was founded by Brazil, Russia, India, China and South Africa, and none of the five has a new trade deal with the US. Lula said he plans to call the leaders of India and China to discuss a joint BRICS response to US tariffs.
Trump-Putin face-to-face meeting in the works
President Donald Trump may meet Russian President Vladimir Putin as soon as next week, the White House official said after a trip to Moscow by US special envoy Steve Witkoff. Trump earlier set an August 8 deadline for Moscow to take steps toward a ceasefire in Ukraine or face harsher sanctions. The White House said the meeting may be followed by a summit involving Trump, Putin and Ukrainian President Volodymyr Zelensky. No US president has met with Putin since 2021.
Israeli security cabinet to meet on Gaza strategy
Israeli Prime Minister Benjamin Netanyahu is scheduled to convene his security cabinet on Thursday to discuss the situation in Gaza. It comes among Israeli media reports that he wants to expand military operations in the coastal enclave with the aim of occupying the whole territory. At special meeting of the UN Security Council this week, Assistant Secretary-General Miroslav Jenča warned of "catastrophic consequences" if Israel goes ahead with a full-scale assault, saying it would endanger the lives of Palestinians and hostages.
Top Business
Trump to impose 100 percent tariff on chips
President Donald Trump said will impose a 100 percent tariff on imports of semiconductor chip, with exemptions for companies that are building production sites in the US or firmly committed to doing so. The new duties may come as early as next week.
In Asian trading on Wednesday, shares in chip and some biogen companies fell on US tariff threats. Tokyo Electron closed down 3.8 percent, Samsung Electronics was down 1.6 percent, TSMC lost 2.7 percent and Shanghai Fudan Microelectronics retreated 1.8 percent. Trump said tariffs on drug imports could rise as much as 250 percent in 18 months. Among Chinese biogen shares, BeiGene fell 0.8 percent and Jiangsu Hengrui Medicine was off by 1.2 percent. Trump's new tariffs are aimed at forcing more chips and drugs to be American made.
China shipyard merger to create global behemoth
China's two largest shipyards began the final stage of a 115.2 billion yuan (US$16 billion) merger that will create the world's largest listed shipping conglomerate. Under the merger, China State Shipbuilding Corp will issue new Class A, yuan-denominated shares to China Shipbuilding Industry Co shareholders in an equal exchange for their shares. Upon completion of the merger, Shipbuilding Industry will be delisted and no longer exist as a separate entity. The transaction is believed to be the largest merger and acquisition transaction every undertaken by A-share listed companies. Based on 2024 financial date, the merged company will have assets exceeding 400 billion yuan and operating revenue of 130 billion yuan.
China is the world's biggest shipbuilder, followed by South Korea and Japan. US President Donald Trump has ordered US agencies to expand domestic commercial and naval shipbuilding to blunt China's dominance of the industry.
Cathay Pacific first-half profit edges higher
Hong Kong flagship carrier Cathay Pacific reported a 1 percent increase in first half profit to HK$3.7 billion (US$465 million) on a 9.5 percent growth in revenue from a year earlier. The airline said it exercising an option with Boeing to buy 14 more 777-9 jets and warned that the outlook for cargo transport remains uncertain.
Economy & Markets
Shanghai dangles subsidies for company research investment
Shanghai is the first city to support corporate investment in technology research by providing subsidies. Companies are that invest more than 100 million yuan a year in research are eligible for a 10 million yuan (US$1.4 million) subsidy. At the lower end, firms investing between 10 million and 50 million yuan will receive a 2 million yuan subsidy.
South Korea woos Chinese tour groups
Chinese travel platform Qunar reported a 70 percent surge in searches related to Seoul after South Korea announced visa-free entry for Chinese tour groups from September 29 through next June in a bid to bolster tourism. It follows Beijing's waivers on South Korean visitors adopted last year. In South Korea, tourism-related shares rose. Shanghai-to-Seoul flights are priced from 519 yuan (US$80).
Bank of China to charge credit cardholders for litigation fees
Bank of China said it will begin adding court-related charges to overdue credit card bills to ease cost pressures and minimize retail credit risk. Effective September 14, the bank will include the fees of attorneys and court costs involved in litigation related to bad consumer debts. The policy will be rolled out in Shanghai before being extended to other cities.
Corporate
XTalPi signs major deal with US biogen company
Shenzhen-based XTalPi, an AI-powered drug researcher, said it signed a US$6 billion deal with DoveTree, a US biotech firm. Under the deal, DoveTree agreed to pay XTalPi a US$100 million upfront fee for exclusive worldwide rights to develop and market innovate drug discoveries of the Chinese company XTalPi is using a platform that leverages artificial intelligence, quantum physics and robotics to accelerate research and development of drugs to treat cancer, inflammatory diseases and neurological disorders. The company will be entitled to further payments of up to US$5.9 billion if pipeline drugs win regulatory approval and meet commercial targets. XTalpi shares in Hong Kong rose 9 percent on the news.
Vanke gets another lifeline loan from biggest shareholder
Struggling property developer China Vanke said this week that its largest shareholder, Shenzhen Metro Group, will provide an additional 1.7 billion yuan (US$233 million) loan, the eighth this year, to help repay debts. The new three-year loan will carry an interest rate of 2.34 percent. At the end of last year, Vanke had liabilities of 1.1 trillion yuan at the start of 2025. Its share price has plummeted 15 percent this year.
JD leads funding round for PaXini
E-commerce giant JD.com led a Series A funding round for PaXini Tech, its sixth investment in the robotics sector in two months. Shenzhen-based PaXini has raised 1 billion yuan (US$139 million) in the last four months. The company, founded in 2021, develops high-precision and multi-dimensional tactile sensors and humanoid robotic systems.
Meituan lends financial support for food suppliers
Meituan, China's largest fast delivery food service platform, said it will offer one-time subsidies of up to 50,000 yuan (US$7,000) to more than 100,000 smaller restaurant suppliers to support their growth and high-quality production. The announcement comes after new government guidelines were issued last week to give merchants a fairer shake in the price war that has engulfed Alibaba, Meituan and JD.com in the battle for consumers in a lucrative market that promises deliveries within an hour of an online order.