Weekend Buzz

Top News

Trump threatens tariffs on EU, Apple

US President Donald Trump ratcheted up his tariff war on Friday, threatening 50 percent tariffs on imports from the EU and 25 percent tariffs on sales of Apple iPhones not manufactured in the US. The renewed rhetoric sent US and European stock markets tumbling. Germany's DAX lost 1.5 percent and the Nasdaq in New York was down 1 percent.

The EU and US are in talks on a new trade deal following Trump's initial round of tariffs in March. Dutch Prime Minister Dick Schoof said some in the bloc are likely to see his latest threat as merely a negotiating tactic. EU exports to the US, led by Germany, last year totaled about 500 billion euros (US$566 billion).

The new tariff on Apple phones will also extend to Samsung and other foreign-made phones sold in the US, Trump said, adding the tariffs are likely to come into effect in late June. Apple declined comment.

The company has been trying to move some production of US-bound phones from China to India, where US tariffs are lower. Trump wants the phones manufactured in the US. It's estimated that an iPhone made in the US would cost up to three times more than a model made overseas.

China slams Harvard ban, school takes dispute to court

China called the Trump administration's ban on Harvard University enrollment of international students "a groundless attack" and said academic exchanges shouldn't be politicized, even as they increasingly become collateral damage in geopolitical disputes. Chinese students comprise the largest foreign population on the Harvard campus, estimated at more than 2,000.

Meanwhile, a US federal judge in Boston temporarily halted the ban on Harvard enrollment after the school filed a lawsuit alleging the decision is illegal. A hearing is set for next week.

In Hong Kong, the University of Science and Technology offered places to foreign students at Harvard University who are affected by the ban, the South China Morning Post reported.

Russia, Ukraine begin prisoner exchange

Russia and Ukraine each released 390 prisoners, both military and civilian, on Friday as the first step in an agreement to exchange 1,000 prisoners from each site. The agreement was the only firm result of last week's first direct talks in more than three years.

Chinese professor in Ohio faces threat of home loss

The state of Ohio in the US is joining Florida and Texas in proposing legislation that would ban non-citizens from "foreign adversaries" from owning homes in the state, the South China Morning Post reported. It cited the case of Xiang Zhang, a professor of genomics at the University of Cincinnati in Ohio, who stands to lose his home if the law were enacted. "I never thought that one day, I would lose my house in Ohio based solely on my nationality,' he was quoted as telling an Ohio legislative committee considering the law.

Top Business

BYD outperforms Tesla in Europe

Chinese electric-vehicle maker BYD outsold Tesla in Europe last month for the first time. BYD new car registrations soared 359 percent in April, while Tesla reported a 49 percent decline, automotive-information firm JATO Dynamics reported. BYD's performance came despite 17 percent tariffs on BYD vehicles imposed by the EU in October 2024, citing unfair trade practices. BYD is building a new plant in Hungary to serve as its center of European production.

Sinopec investment in CATL

China Petroleum & Chemical Corp (Sinopec) emerged as the largest cornerstone investor in Chinese battery giant CATL's US$4.6 billion Hong Kong listing. The investment follows an April agreement between the two companies to jointly develop at least 500 battery-swap stations nationwide, with ambitions to scale up to 10,000.

The partnership signals moves to accelerate infrastructure for electric cars, making recharging easier for motorists.

Drone exhibition opens

The Drone World Congress opened on Friday in the southern city of Shenzhen, with 800 companies exhibiting. China is actively encouraging demonstration initiatives that will advance what is called the "low-altitude economy." Shanghai is among the cities taking a leading role.

Economy

Japanese inflation

Inflation in Japan last month was up 3.6 percent from a year earlier. Core inflation, the figure watched by central banks in determining monetary policy, was a higher-than-expected 3.5 percent, gaining 0.3 percentage points from March. It was the highest level in two years. Core inflation excludes volatile prices like fresh food and energy costs. Rice prices, a key cost for Japanese households, doubled in the past year to hit record highs.

Business activity contracts in EU, Japan

Amid the global tariff war, business activity in Europe and Japan contracted in May, led by services industries, while the US saw a rebound, according to surveys released on Thursday.

The composite purchasing-managers index for the EU fell to 49.5, a six month low. The 50-mark is the threshold between expansion and contraction. The index for Japan came in at 49, contracting for the 11th consecutive month. The S&P Global PMI for the US came in at 52.1.

Deep Dive

China Tech Week: Domestic innovations challenge US dominance

Domestic firms are challenging US counterparts – from the Windows-Intel duopoly in computing, to Qualcomm in the mobile chips, and OpenAI and Nvidia in artificial intelligence.

Click the headline to read full article."

Corporate

Apple raises iPhone trade-in values in China

Apple raised the trade-in amount Chinese consumers can receive if they buy new iPhones in an attempt to spur domestic sales. The iPhone 15 Pro Max now has a trade-in value of up to 5,700 yuan (US$790), a 1.3 percent increase. The trade-in for the iPhone 15 Pro model was raised from 4,725 yuan to 4,750 yuan.

Anthropic debuts Claude 4

AI company Anthropic unveiled its Claude Opus 4 and Claude Sonnet 4 models. Both models introduce hybrid reasoning, balancing fast responses with deeper analysis, and also feature extended memory and tool usage. The Claude Opus 4 is now considered the world's top coding model, capable of autonomously handling complex software engineering tasks with minimal supervision.

Spring Airlines expands network

Spring Airlines, China's largest budget carrier, is set to expand its footprint across Asia with the launch of new routes, including direct service between Shanghai and Hanoi. Commencing in July, the new route to Vietnam will operate four flights a week. The airline is also exploring other Southeast Asian routes to make further inroads in China's largest export region.

Will Semiconductor plans Hong Kong IPO

Shanghai-based Will Semiconductor announced plans to pursue an initial public offering in Hong Kong to raise money to finance overseas expansion. The move aligns with a growing trend among Chinese companies to have dual listings on the mainland and in Hong Kong. The recent successful US$4.6 billion IPO by Chinese battery giant CATL in Hong Kong was the world's largest IPO this year.