Top News
Xi, Trump hold 'positive' phone call, no details disclosed
Chinese President Xi Jinping and US President Donald Trump talked by phone for nearly two hours on Friday, but neither side disclosed any details on the status of TikTok operations in the US, trade negotiations or other bilateral issues.
The call was "pragmatic, positive and constructive" across a range of issues, according to an official readout from Xinhua news agency. On the fate of TikTok, the popular video platform owned by China's ByteDance that is facing a ban in the US, Xi said, "China's position on TikTok is clear. The Chinese government respects the wishes of the company in question and is glad to see business negotiations in accordance with market rules and China's laws and regulations. It is hoped that the US side will provide an open, fair, and non-discriminatory business environment for Chinese companies investing there."
For his part, Trump said the call "made progress" on "important" issues such as trade, TikTok and the need to end the war in Ukraine, but gave no substantive details. Trump said he hoped to meet Xi next month at the Asia-Pacific Economic Cooperation meeting in South Korea.
NATO chases Russian fighter jets from Estonian airspace
NATO jets intercepted three Russian MiG-31 fighter jets over Estonia's airspace on Friday, the second incursion in a week by Russian aircraft in the skies over a NATO member. The Russian jets left after about 12 minutes, Estonia's foreign ministry said, calling the intrusion "brazen." Last week, Polish and NATO pilots shot down Russian drones in Polish airspace.
US vetoes UN resolution calling for end to Gaza war, lifting of aid blockade
The US vetoed a draft resolution at the United Nations Security Council that called for an immediate, permanent ceasefire in the "cataclysmic" war in Gaza, the release of hostages by Hamas and the lifting of all Israeli restrictions on humanitarian aid to the territory. It was the lone dissenter among the 15 council members but is one of the five permanent members with veto power. China, a permanent member, said it was disappointed.
Israeli military forces are conducting a major ground offense in Gaza City, the enclave's largest population center. The UN estimates a quarter of the city's nearly 1 million residents have been forced to evacuate.
EU to wean itself off Russian gas dependence at a faster pace
The EU said it is accelerating its withdrawal from Russian natural gas purchases and hopes to end them by 2027. The US has been pressuring countries to stop buying Russian oil and gas, which it says finances the war in Ukraine. The EU is a major buyer of Russian energy, along with China and India. US President Trump has imposed a 25 percent tariff on India over its purchases and said the US will impose punitive tariffs on China if the EU takes similar action.
Top Business
Zijin Gold begins Hong Kong's second-largest 2025 IPO
Zijin Gold International, a wholly owned subsidiary of China's Zijin Mining, officially launched a HK$24.98 billion (US$3.2 billion) initial public offering that will be the second-largest in Hong Kong this year after battery-maker CATL's debut. The company began the sale of 349 million shares priced at HK$71.59 each. Retail investors will have access to 10 percent of the shares, with the remainder allocated to institutional investors. Hong Kong-listed parent Zijin Mining, one of China's largest miners of gold and copper, will hold 86.7 percent of its international spinoff after the sale.
US to levy high fees on foreign worker visas
The Trump administration said it will charge US companies who sponsor the employment of highly skilled foreigners US$100,000 a year for the required H-1B worker visas. About two-thirds of talent on H1-B visas are in the technology sector. Last year, Indian workers accounted for 71 percent of the visas, with China second at nearly 12 percent.
Apple iPhone 17 debuts in China amid strong consumer interest
Consumers lined up in their hundreds at Apple's flagship store in Beijing on Friday as the new Apple iPhone 17 hit the shelves in China and worldwide. The apparent popularity of the phone, despite strong competition from domestic smartphone makers, will come as a relief to Apple, which has been losing market share in China.
Chiew Le Xuan, a senior analyst at research company Omdia, told Reuters that new phone is expected to become Apple's top-selling model in China in 2026 and will boost second-half sales this year by 11 percent. Apple has yet to begin sales of its new, thinnest-ever iPhone Air as it awaits regulatory approval for China telecom operations to offer support for the model's digitally embedded SIM system.
Economy & Markets
Japan central bank keeps rates steady, inflation cools in August
The Bank of Japan kept short-term rates unchanged at 0.5 percent on Friday as inflation in August slowed to a nine-month low of 2.7 percent, still above the central bank's 2 percent target. Rice inflation, a cause of widespread consumer concern, remained at a record 69.7 percent, cooling from 90.7 percent in July. The bank also announced that it will begin a phased sell-off of its holdings in exchange-traded funds and real estate investment trusts that were amassed in a monetary stimulus program that began a decade ago. The sales will be structured to cause the least market disruption.
Speaking at a news conference, central bank Governor Kazuo Ueda said inflation remains within the bank's expectations and he expects high food prices to continue to drop. He said consumer spending remains weak but resilient, and exports and manufacturing profits have been hurt by US tariffs. "We're not seeing a major impact from US tariffs on Japan's economy as a whole," he said. "However, there continues to be strong uncertainty over the outlook."
China's central bank conducts reverse repo operation
The People's Bank of China conducted an operation of 487 billion yuan (US$68.6 billion) of seven-day reverse repos this week through open market operations, keeping the rate steady at 1.4 percent and signaling that the central bank may be in no hurry to change key rates affecting consumer credit, corporate borrowing and mortgages for now. Reverse repurchase agreements are a central bank tool to manage liquidity in the economy.
Shanghai waives property taxes for some skilled talent
Shanghai has waived property taxes on home purchases by skilled workers holding local residency permits in a bid to attract and retain out-of-town talent and bolster the housing market. The policy affects top professionals and urgently needed workers who buy first homes in the city. Refunds on property taxes for qualified purchases will begin next January. The policy also extends to buyers who have held a Shanghai residency permit for at least three years while living and working there. If either group of buyers purchases second homes, they can also avoid property taxes provided the combined floor space of all residences averages 60 square meters or less per person.
Corporate
Xiaomi recalls a third of SU7 models over faulty driver assistance
Xiaomi Auto said it is recalling 116,887 SU7 standard-version sedan models produced between February 6, 2024, and August 30 this year because of problems when their navigation assistance features are activated. It said free software upgrades will be provided. The company's shares fell 0.26 percent to close at HK$56.70 (US$7.29) following the announcement. The recall, affecting more than one-third of Xiaomi's SU7 fleet, comes six months after a fatal crash involving an SU7 raised questions about the safety of advanced driving features.
VW to discontinue Touareg SUV sales in China
German automaker Volkswagen said it will discontinue its mid-size Touareg SUV in China, beginning in November, citing poor sales, Yicai reported. The company said existing owners of the vehicles will still have access to after-sales and maintenance services.
Neusoft snags deal with 'major' Chinese automaker
Chinese software developer Neusoft said it has become the designated supplier of smart cockpit domain controllers for a "major" Chinese automaker, which it declined to name for confidentiality reasons. The four-year deal is expected to produce revenue of 5.6 billion yuan (US$788 million) for Shenyang-based Neusoft. The client will Neusoft controllers, equipped with Qualcomm chips, in new cars to be manufactured starting in the fourth quarter, Yicai reported. Neusoft shares in Shanghai jumped 10 percent.
Dreame Technology reports robust orders for its new smartphone
Suzhou-based Dreame Technology said it has received overseas pre-orders valued at 100 million yuan (US$14 million) for its first smartphone. The company, which is expanding from making robotic vacuum cleaners, also released the first image of its new first concept car as it also moves into the electric vehicle business.
DeepSeek reveals low cost of training it RI model
Chinese AI developer DeepSeek, which dazzled the tech world in January with its a low-cost large language model RI, disclosed that spent only US$294,000 to train the model – a figure much lower than the millions reportedly spent by rivals like OpenAI. The Hangzhou-based company reported the figure in the academic journal Nature, where it revealed that the model used 512 Nvidia chips.
Li Auto, CATL sign collaboration deal
Chinese electric carmaker Li Auto and battery giant Contemporary Amperex Technology (CATL) signed a five-year deal to collaborate in battery safety, supercharging technology and expansion of domestic and international business.
Battery recycler GEM partners with US company on European venture
Shenzhen-based GEM, China's leading battery recycler, is linking up with US-based Ascend Elements to establish a European joint venture to recover lithium, nickel and cobalt compounds from lithium batteries. GEM earlier this year said it is eyeing a secondary listing in Hong Kong. The company is currently listed on the Shenzhen exchange.