Daily Buzz: 14 May 2025

Top News

US lowers tariff on mini parcels

The US rolled back its tariff on small parcels valued at US$800 or less sent from China to 54 percent from 120 percent. The tariffs are aimed at big Chinese e-commerce players like Temu and Shein, whose business model is based on shipping lower-cost goods duty-free to US buyers. Temu earlier announced it was halting all shipments from China. Chinese companies that produce such daily-item products have reported fewer orders.

Who's coming to Istanbul?

Ukrainian President Volodymyr Zelensky said he will be in Turkey on Thursday for direct talks proposed by Russian President Vladimir Putin. US Secretary of State Marco Rubio said he would be there. But Putin himself has been silent about his presence.

Zelensky said he won't hold talks with any Russian representative other than the Russian leader because "everything in Russia depends" on Putin. US President Donald Trump, who has been trying to broker peace, said talks in Turkey "could produce some pretty good results."

China and Brazil, at a ministerial meeting of a Sino-Latin American group in Beijing, issued a joint statement praising Putin's proposal to start peace talks and Zelensky's positive response, expressing hopes that the conflict in Ukraine can be resolved.

US-Saudi arms deal

The US and Saudi Arabia signed a US$142 billion arms deal that the White House claims is the biggest of its kind in history. The agreement, which came during a four-day visit to the Gulf states by President Donald Trump, is part of a US$600 billion commitment from Saudi Arabia to invest in the US. Speaking at an investment forum in Riyadh, Trump also announced the US will lift all sanctions on Syria.

Communications satellite launch

China launched a communications satellite into space from the Xichang center in the southwestern province of Sichuan. It will be used to carry out multi-band and high-speed communication technology validation tests. China's space industry has witnessed fast development, with 68 space launches in 2024.

Top Business

Not so fast!

Rival online e-tailers JD.com, Meituan and Ele.me were summoned by China's market supervisors for talks regarding the need to strictly adhere to e-commerce, food safety and fair competition laws in their fierce battle to dominate the instant delivery market, Chinese media reported. Alibaba is the latest company to join the fray, promising delivery of food and other items within 30 minutes of ordering.

JD beat market forecasts with quarterly revenue announced on Tuesday. It reported sales of 301.08 billion yuan (US$41.82 billion) for the three months ended March 31, up 16 percent from a year earlier.

China investors await more trade news

Chinese stocks closed mixed on Tuesday, with the benchmark Shanghai Composite Index up 0.17 percent and the Shenzhen Component Index down 0.13 percent. Investors are awaiting the next round of US-China trade talks after Monday's announcement that steep bilateral tariffs would be paused for 90 days. Chinese ports and banking shares rose, while those related to the military industry were among the biggest losers.

US markets were also mixed a day after the trade agreement was announced. The Dow Jones Average fell 0.6 percent while the S&P 500 was up 0.7 percent on softer-than-expected US inflation figures.

Economy

Gold prices ease

Gold retail prices in China fell as a temporary truce in the US-China trade war eased demand for the precious metal as a safe-haven investment. The price of pure gold ornamental jewelry at retailer Chow Sang Sang fell 16 yuan (US$2.20) per gram to 991 yuan. Spot gold prices in New York rebounded half a percentage point to US$3,251 after plunging almost 3 percent on Monday when the truce was announced.

Microsoft layoffs

Microsoft announced it is laying off about 6,000 employees, or 3 percent of its workforce, as part of "organizational changes in a dynamic marketplace." It's likely to be the biggest cutback since 10,000 jobs were axed in 2023.

Crayfish prices plunge

China's crayfish prices have dropped nearly 50 percent from their spring peak, despite surging seasonal demand for the highly prized seafood. Daily sales at a major trading hub in Hubei Province jumped from 3,000 kilograms to over 30,000, but average wholesale prices fell from 70 yuan (US$9.70) per kilo in April to 38 yuan in May as supply exceeds demand. The price slump is hitting producers like Guolian Aquatic. Its shares fell 0.6 percent on Tuesday to 3.46 yuan, a 3.4 percent drop in the past month.

Corporate

Google bets on startups

Google has launched the AI Futures Fund, a new investment initiative targeting artificial intelligence startups worldwide. Eligible startups will get Google investment, early access to AI models and mentoring support from Google specialists. One of the early beneficiaries is India's Toonsutra. The fund signals Google's push to be a leader in the generative AI landscape and comes amid escalating competition from Amazon and Microsoft.

VW lifts China focus

Volkswagen is promising a new thrust to improve its performance in China, the world's biggest car market. Speaking to the Financial Times on Tuesday at the newspaper's Future of the Car summit in London, Chief Financial Officer Arno Antlitz said the German company will launch new models in China by the third quarter of 2026, Reuters reported.

Brooks Running picks up pace

The century-old American brand Brooks Running, owned by Warren Buffett's Berkshire Hathaway, said first-quarter earnings rose a record 15 percent on growth in all global markets. In the Asian-Pacific-Latin American market, which includes China, revenue surged 221 percent.