Top News
China directs US to "right way" in relations
Chinese Foreign Minister Wang Yi told US Secretary of State Marco Rubio to "explore the right way for the two countries to get along in the new era." The two men met on the sidelines of meeting of foreign ministers of the Association of Southeast Asian Nations in Malaysia. Rubio, who was on first trip to Asia since taking office, said the meeting was "constructive and positive." China and the US are still trying to forge a new trade deal to reduce tensions, but like many nations in the region, China is unhappy about unilateral Trump administration tariffs.
Unwelcome letters in the post
In a continuing flood of letters to trading partners, US President Donald Trump warned Canada that he will impose 35 percent on its goods starting August 1 and would raise that rate if the nation retaliated. He also said a letter bearing a new tariff rate for the EU will soon be in the mail, along with other letters to trading partners warning of blanket tariffs up to 20 percent. August 1 is his latest – and he says last – deadline for reaching agreement on new trade deals. Only two have been signed to date.
Air India crash probe finds fuel switches turned off
A preliminary report on the investigation into the June 12 crash of an Air India plane just minutes after takeoff in Ahmedabad found that both fuel control switches had been moved to the cut-off position, starving the engines of fuel. On a cockpit voice recording, one pilot is heard asking the other why he moved the switches, and the other pilot replying that he hadn't. All but one of 242 passengers on board the Boeing Dreamliner flight to London were killed, and 18 people on the ground were killed when the jetliner crashed into a residential area.
Pressure ramps up for ouster of Fed chief
The Trump administration is ganging up on Jerome Powell to force him out as chairman of US Federal Reserve. As Trump and Treasury Secretary Scott Bessant continue to browbeat Powell over his failure to lower interest rates, Russell Vought, head of the Office of Budget and Management, accused Powell of overseeing an "ostentatious" US$2.5 billion renovation of Fed headquarters that may "violate the law." In a letter to Powell, Vought said, "The president is extremely troubled by your management of the Federal Reserve. "
Top Business
Chery, BYD claimed improper subsidies
Chinese electric automakers Chery and BYD improperly claimed a combined US$39 million in government subsidies for eco-friendly vehicles sold in the five years to 2020, an industry ministry audit found. Some 21,725 vehicles should not have received subsidies totaling 864.9 million yuan (US$121 million), according to documents published by the Ministry of Industry and Information Technology. Of those, 7,663 were Chery brand and 4,967 BYD. Officials have not said what penalties or reimbursements may result.
TikTok denies US sale pathway
Popular social media platform TikTok, owned by China's ByteDance, denied a foreign news report that it was laying the groundwork for a potential sale of its US operations by developing a stand-alone app tailored exclusively for the American market. The US Congress last year enacted a ban on TikTok in the US if it remained in Chinese hands. President Donald Trump, who has thrice delayed implementation of the law, said last weekend that talks on ownership were set to begin, but no information on negotiations has emerged.
Wake-up call for coffee prices
The cost of that morning latte may be headed higher after the Trump administration raised its import tariff on Brazil products to 50 percent from 10 percent. Brazil is the world's largest grower and exporter of coffee. Arabica coffee futures rose as much as 3.2 percent after the new tariff was announced, amid a global coffee market already experiencing record-high prices this year. The cost of a brew in China has been mitigated by intense competition among coffee chains.
Economy & Markets
Insurers face longer lens
China's Ministry of Finance has rolled out new evaluation metrics that require state-owned insurers to adopt a longer view on investments in order to reduce short-term performance pressure and stabilize markets. Starting this year, insurers must assess investment returns across five years instead of just one. One-year investments will carry a weight of 30 percent; three-year investments, 50 percent; and five-year investments, 20 percent. Under the policy, insurers are expected to increase equity allocations, giving a boost to market confidence. Analysts view the new system as a strong signal to encourage "patient capital" to support China's economic rebalancing and capital market reforms.
Rising use of electric trucks cuts diesel forecast
China's demand for diesel fuel will diminish up to 2 percent amid a boom in electric trucks used in ports, mines and steel mills, according to Sublime China Information, a Shenzhen-listed commodity information service. In the first half of the year, sales of electric trucks rose 175 percent from a year earlier to 76,100, accounting for half of new truck sales, it said.
Renault, private equity firms form green-vehicle fund
Ampere, the electric-vehicle unit of French carmaker Renault is partnering with leading China private equity firms CICC Private Equity Investment Management, Hangzhou Capital and Hangzhou High-Tech Investment Holding Group to establish a new energy vehicle industry fund to finance development of autonomous driving systems, artificial intelligence software and electric batteries.
China summer grain harvest steady
China's summer grain harvest, which comprises about a fifth of the nation's annual production, was little changed from last year at about 150 million tons despite some adverse weather, the National Bureau of Statistics said. A stable harvest indicates no need to increase grain imports.
UK economy shrinks
The UK economy, sixth largest in the world, contracted in May for a second straight month, shrinking 0.1 percent from April. Production output fell 0.9 percent and construction was down 0.6 percent. The economy contracted 0.3 percent in April after the Trump administration slapped tariffs on all global trading partners.
Corporate
Shanghai Disneyland halts popular park sales, blames scalpers
Shanghai Disneyland Resort announced it is suspending in-park sales of merchandise from its new Duffy and Friends collection after scalpers snapped up most of the goods and were selling them at marked-up prices. It said its remaining stock will be sold via its Tmall online store. The collection, launched on July 8, includes keychains, plush toys, handbags and clothes.
Samsung confirms tri-fold phone
Samsung has confirmed plans to launch its first tri-fold smartphone by the end of the year, signaling a new leap in foldable devices. TM Roh, head of Samsung's mobile division, said the new phone, as yet unnamed, will meet high standards in performance and usability. Sources suggest it will feature a near-10-inch OLED display when unfolded and a secondary screen when closed, and will be powered by Qualcomm's Snapdragon 8 Elite chip. The device is expected to cost more than US$2,900. It will debut in South Korea and China late this year, with a global rollout likely in 2026.
Chinese vehicle maker Zeekr, majority owned by Geely, will launch the behemoth hybrid 9X SUV model in August. The 1,381-horsepower six-seater will have zero-to-100 acceleration of 3.1 seconds and a combined driving range of over 1,000 kilometers. Its main rival is BYD's Yangwang U8. Zeekr claims the 9X can charge faster than 99 percent of battery electric vehicles on the market.
Galaxea raises US$100 million in financing
Chinese tech startup Galaxea raised over US$100 million in two financing rounds led by Meituan investment arms Longzhu and Corporate Venture, with contributions from Capital Today and existing investors MiHoYo and Wuxi Venture Capital Group. The company focuses on artificial intelligence used in robotics and other applications. It was the second time Meituan, an e-commerce giant, has invested in an embodied AI company. In May, it led a round of financing for X Square Robot.
China car factory site repossessed
A 44-hectare site bought five years ago by the electric vehicle arm of now bankrupt property giant China Evergrande has been repossessed by the Guangzhou government after plants to build a 2.5 billion yuan (US$348 million) car factory failed to materialize on the undeveloped site.