Top News
China, US need each other, must restore healthy relation, minister says
Wang Wentao, China's commerce minister, told a press conference yesterday that recent tensions with the US have taught both sides that they need each other to prosper and China wants commercial relations to return to healthy, sustainable development. He said the US must behave in a way befitting its status. "Having weathered many storms, the two sides remain important economic and trade partners to each other," Wang said, adding that bilateral tensions must be resolved through "equal dialogue and consultation."
Blackstone backs out of TikTok sale consortium
US private equity giant Blackstone has withdrawn from a consortium seeking to invest in TikTok's US operations, Reuters reported. The firm was part of a group led by Susquehanna International Group and General Atlantic in discussions that would give US investors 80 percent control of TikTok in the US. No reason was given for Blackstone's change of heart. The US Congress last year passed a law banning TikTok in the US if it remains under the ownership of China's ByteDance. President Donald Trump has thrice delayed implementation of the law to allow time for talks on a sale. The latest deadline in September 17.
Trump seeks tariff of up to 20 percent in EU trade deal
President Donald Trump is demanding a minimum tariff of between 15 percent and 20 percent in any trade deal with the EU, the Financial Times reported. The EU is attempting to reach a deal with the US ahead of Trump's Aug. 1 deadline but has protectively prepared a series of retaliatory tariffs. The European Stoxx 600 index slipped lower despite positive corporate earnings results.
Israel "regrets" deadline strike on Gaza church
Israel said it "deeply regrets" a deadly strike on Gaza's only Catholic church, which killed three people. Israel called the strike a mistake. The church had become a shelter for the tiny Christian population in the coastal enclave. The Vatican said Pope Leo XIV was "deeply saddened" by the attack. US optimism that there will be quick agreement between Hamas and Israel on a Gaza ceasefire has yet to produce results.
China lauds robust five-year business growth
As China prepares to adopt its 15th Five-Year Plan, the current one looks to end with solid commercial results. Despite what it calls "unprecedented challenges," the Ministry of Commerce said, retail sales are expected to exceed 50 trillion yuan (US$7 trillion) this year after expanding 5.5 percent last year, with spending on services rising 9.6 percent. Foreign trade rose to US$6.2 trillion last year, with China leading global ranks for the eighth consecutive year. Trade with countries along the "Belt and Road" initiative accounted for more than half, showing strong diversification.
Top Business
Tesla readies a six-seater Model Y
US-based electric carmaker Tesla has started production of its first six-seat version of its Model Y at its mega-factory in Shanghai, with sales expected to begin in September. The 4.98-meter long Model YL vehicles have been specifically designed for the Chinese market, where Tesla sales declined in the first half amid increased competition from domestic rivals. Industry analysts are predicting a sticker price of at least 400,000 yuan (US$55,730).
Sino Pharma to buy out cancer drug developer
Chinese drug giant Sino Biopharmaceutical said it will spend US$951 million to take over Shanghai-based cancer treatment developer LaNova Medicines. La Nova previously licensed a cancer drug to AstraZenec and Merck for global sales. It is rare in China for a novel drug developer to be wholly acquired by a pharma heavyweight, possibly signaling a new merger-and-acquisition trend in the industry.
Foreign investment incentives
China addressed slowing foreign investment with a package of new measures that include the opening of more sectors, greater flexibility in leasing industrial land, incentives to reinvest profits in China corporate shares and streamlined approval of some loans and Panda bonds. The incentives place a focus on investment in advanced manufacturing and green technologies. In the first five months of the year, foreign direct investment in China fell 13 percent from a year earlier to 358.2 billion yuan (US$50 billion).
Unitree takes first IPO step
Hangzhou-based Unitree Robotics began the "tutoring process" leading to an initial public offering on the mainland. Citic Securities will lead that process by helping Unitree prepare share-sale documents. The company has had annual revenue of over 1 billion yuan (US$139 million) since 2020 and recently closed a C-round of financing that attracted major investors like China Mobile, Tencent, and Alibaba. Unitree also recently secured a China Mobile contract to supply small humanoid robots.
China blasts Canada's new steel tariffs
China's Ministry of Commerce condemned Canada's new 25 percent tariff on all steel products containing metal melted and poured in China. The decision also includes tariffs of 50 percent on non-US steel imports above established quotas. The duties are aimed at shoring up Canada's domestic steel industry. The ministry said such unilateral measures violate World Trade Organization rules, disrupting trade and harming Chinese interests.
China foils rare earth smuggling
China's national security agencies have intercepted illegal attempts by a "foreign contractor" to smuggle rare earth minerals out of the country. The perpetrator allegedly used false labeling to misrepresent content and disguised shipments to bypass export controls. China dominates the world market in rare earths – materials critical to industrial production of items like smartphones. In the first half, exports rose 12 percent from a year earlier to 32,569 tons.
Economy & Markets
China trims holdings of US Treasuries
China holdings of US government bonds in May fell to US$756.3 billion, the fourth straight month of decline and the lowest level since 2009, the US Treasury Department's monthly report shows. That bucked the trend of increased foreign holdings of US Treasuries, which rose 11 percent in May from a year earlier to US$9 trillion. Japan remained the largest foreign holder of Treasuries, which finance US deficit spending, followed by the UK and China.
Japanese inflation slows
Japanese core inflation in June slowed to 3.3 percent from 3.5 percent in May as rice prices eased after their fastest increase in 50 years. However, inflation remained above the Bank of Japan's 2 percent inflation target for the 39th straight month.
China, Australia canola deal looms
China, the world's largest importer of canola, and Australia, the world's second-largest exporter, are close to finalizing a trial deal that would see Australian farmers initially shipping up to 250,000 metric tons to China, ending a five-year freeze caused by concerns about fungal plant disease. China has sourced nearly all its imports from Canada, but a Chinese 100 percent tariff on Canadian canola meal and oil this year amid an anti-dumping probe has strained that commerce.
China tightens e-bike rules
China, the world's largest electric bicycle market, is rolling out its toughest safety standards to date, mandating a 25 kilometer-per-hour speed limit, boosting fire safety standards and cracking down on illegal bike modifications.
AMC starts first yuan tokenized money market fund
China Asset Management Co launched a yuan tokenized money market fund in Hong Kong, the first in the world denominated in yuan. Tokenized investment funds are basically decentralized, digital versions of funds that apply blockchain technology. Like traditional money market funds, they invest in bonds, money market instruments and other securities but allow shares to be traded like digital currencies, enabling real-time transactions on crypto platforms. The global asset tokenization market size is currently estimated at US$2.1 trillion.
Deep Dive
The foldable smartphone is emerging as the latest hotly contested trend in a highly competitive market, with Apple reportedly poised to unveil its first foldable iPhone in 2026. Will it be a game-changer?
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It's survival of the fittest in China's brutal electric car market
According to incomplete statistics, over 24 auto companies have either folded or undergone reorganization since 2022 – half of them in the electric and hybrid vehicle segment.
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The race is on! Chinese pharma firms see fat profit potential in weight-loss drugs
Fatness, once a scourge only in advanced Western countries, is no stranger to China nowadays, with an estimated 400 million overweight or obese adults. Small wonder that the nation's pharmaceutical companies have joined foreign rivals in racing to develop drugs that help people lose weight.
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Corporate
Ant, Citi team up to save on forex hedging costs
Ant International, the fintech arm of Alibaba's Ant Group, and Citicorp are starting a pilot project to use artificial intelligence to reduce costs of foreign-exchange hedging. Ant has already trialed AI in hedging foreign exchange in the sales of online airline tickets, with a 30 percent cost savings, the companies said in a statement.
Ele.me, Meituan, JD summoned by regulators over "subsidy war"
China's market regulators again summoned officials from Alibaba's Ele.me, Meituan, and JD to discuss the escalating use of promotion subsidies in the online fast-delivery sector. It follows a warning in May that the fiercely competitive market was becoming too chaotic. Yesterday's meeting yesterday urged online delivery platforms to strictly comply with e-commerce and anti-unfair competition laws.
China lowers tax threshold on luxury cars
Ultra-luxury car models sold by Mercedes-Benz, Land Rover Porsche, Lexus and Bentley will cost more in China, effective Sunday, after China lowered the threshold for imposition of its 10 percent retail consumption tax on luxury cars to 900,000 yuan (US$125,285) from 1.3 million yuan. The new policy will also apply to pure electric and fuel cell autos, instead of only fuel-powered cars, the Ministry of Finance and the State Taxation Administration said.
Sam's Club faces consumer backlash
US-based Sam's Club is under fire from subscription members in China for removing popular, high-cost items and replacing them with mass-market brands. Members, who are often willing to pay for Sam's Club membership to access scarcer high-end items, accused the retailer of compromising quality for profit. Consumer complaints against Sam's Club have surged 11-fold in four years.
WM Motor to resume production
Shanghai-based electric car startup WM Motor, which underwent a court-administered restructuring after a 2022 liquidity crisis, will resume production next month after investment from Xingfei Automobile. Mass production at a plant in Wenzhou will focus on EX5 and E5 electric models.
Tinci Materials bags battery-related contract
Guangzhou-based Tinci Materials Technology signed a 10 billion yuan (US$1.4 billion) contract to supply lithium battery electrolytes and related chemicals to Hubei Province-based battery manufacturer Cornex New Energy.
MDK Opto Electronics enters Samsung supply chain
Hangzhou-based MDK Opto Electronics is acquiring two South Korean companies that produce optical soft film filters for the Samsung Group for US$2.2 million. The acquisitions are Haishuoli Optoelectronic, which has a China factory in Suzhou, and Innowave, which has a plant in Vietnam. The purchases are aimed at breaking into the Samsung supply chain.