Daily Buzz: 26 May 2025
Top News
US delays tariff increases on EU imports
The Trump administration said its proposed 50 percent tariff on imports from the EU will be delayed from June 1 to June 9. "I received a call today from Ursula von der Leyen, president of the European Commission, requesting an extension," Trump wrote on his social media account. Trump earlier expressed impatience with progress in ongoing trade talks with the 27-member bloc. The EU's trade chief said over the weekend that his side is committed to securing a trade deal with the US based on "respect" not "threats."
Fitful US-Iranian nuclear talks
The fifth round of nuclear talks between the US and Iran ended in Rome on Friday with "some but not conclusive progress," according to Oman, which is mediating negotiations. The talks have stalled on Iran's insistence that it be allowed uranium enrichment for domestic use, a proposal the US has rejected. The talks are being closely watched amid reports that Israel may be planning a military strike on Iran's nuclear facilities if talks collapse.
As war in Ukraine wages on, Trump rebukes Putin
As Russia and Ukraine ended a swap of 1,000 military and civilian prisoners each, warfare continued. Ukraine said Russian forces launched their largest aerial attack of the war, with 298 drones and 68 missiles killing civilians across the country. Russia said its air defenses shot down 110 Ukrainian drones.
US President Donald Trump said he is unhappy with Putin and considering additional sanctions on Russia. "I don't know what the hell happened to Putin," he said. "I've known him a long time. I've always gotten along with him. But he's sending rockets into cities and killing people, and I don't like it."
Gaza attacks show no signs of easing
Israeli military strikes continued across the Gaza strip, with Hamas claiming that Israel now controls 77 percent of the coastal enclave. International condemnation of Israeli ground and air attacks intensified after reports that an Israeli strike on Friday killed nine of 10 children of a Palestinian pediatrician while she was at work at a hospital. One child and her husband remain in critical condition. The Israeli military has said the incident is under review. At least 53,939 people, including at least 16,500 children, have been killed in Gaza since October 2023, according to the territory's health ministry.
Top Business
China's ATM sites closing as mobile payments rise
China is rapidly phasing out automated teller machines as mobile payments increasingly dominate daily transactions. According to the Chinese central bank, ATM numbers fell to 802,700 by the end of 2024, down nearly 27 percent from a 2019 peak of 1.1 million. Mobile payments in the same period soared 35 percent to over 301.7 billion transactions a year. More than 50 financial institutions, including state-owned banking giants like ICBC and Bank of China, have shut down QR code and no-card deposit features at ATMs. The shift means that manufacturers of ATMs must pivot their focus or face obsolescence.
Alibaba touts fight-back resilience
Alibaba Group Holding Chairman Joe Tsai said the company is now "on a very good path" after overcoming "a ton of setbacks" in recent years, the South China Morning Post reported. Speaking at Macau's Beyond Exhibition, Tsai said the setbacks were a confluence of regulatory scrutiny, fierce competition, the coronavirus pandemic and geopolitical risks. He said the tech giant learned how to be resilient and fight back, which will stead it well as it faces an era of "trade tensions, tariffs and governments acting in a way that's very unpredictable." Going forward, the company will sharpen its focus on core businesses like e-commerce, cloud computer and artificial intelligence, Tsai added.
Shenzhen shines with innovation
Huawei, UBTech Robotics and EngineAI were among the 300 companies exhibiting some of the latest advancements in artificial intelligence and robotics at the three-day Global AI Terminal Expo 25 in the southern city of Shenshen.
Huawei exhibited its first foldable tablet running on its in-house HarmonyOS system, and UBTech Robotics introduced Meng UU, a palm-sized doll with embedded AI that enables it to interact with users. EngineAI unveiled its inaugural quadruped robot, and Meta-Bounds, a Chinese smart glasses start-up, demonstrated a prototype weighing less than 35 grams.
To encourage further research and development, Shenzhen announced two new city investment pools of 7 billion yuan (US$1 billion) to support start-up companies doing work in robotics and other smart devices.
Tariffs to bite US consumers
High-profile US retailers, including discount chain Walmart, toy chain Mattel and electronics chain Best Buy have rejected President Donald Trump's advice that they "eat" the costs of his import tariffs, promising higher prices for consumers. Walmart has said it will try to keep prices as low as possible but said prices will rise in June because it can't absorb all the costs. Mattel said it has no choice but to raise some prices, and Best Buy said price increases for American consumers are "highly likely."
Nintendo said prices for its consoles won't rise, but accessories will cost more. Playstation maker Sony told investors on an earnings call that the company will pass on costs. And Chinese e-commerce retailers Temu and Shein, who have lost duty-free access on delivery of small, lost-cost parcels to US buyers, have announced price adjustments.
Trump, who is threatening new 25 percent tariffs on popular Apple and Samsung smartphones made abroad, promised in his election campaign last year to lower the cost of living for US consumers.
Economy
China courts US financial firms
Chinese Vice Premier He Lifeng met senior executives from US investment bank Citigroup and global wealth manager Carlyle Group in Beijing to assure them of the nation's economic vitality amid current trade tensions, Xinhua news agency reported. He met separately with Citigroup Chairman John Dugan and Carlyle Group Chief Executive Harvey Schwartz on Friday, telling them the nation is committed to further opening up to foreign investment. Both executives said their firms remain committed to China, Xinhua said. Last week, US investment bank JP Morgan also pledged to maintain its mainland presence.
US dollar declines
The US dollar suffered its biggest weekly loss in almost two months after US President Donald Trump broke a relative calm in his trade war by announcing that EU exports to the US could be hit with 50 tariffs in June, citing difficulties in bilateral trade talks. He also threatened to impose 25 percent tariffs on imports of mobile phones made overseas, which would affect Apple and Samsung. The US dollar index, which measures the greenback against a basket of currencies, tumbled 1.9 percent in the week, down 2.2 percent against the Japanese yen.
Corporate
Nvidia's new China chip
Nvidia will launch a new artificial intelligence chipset for China at a significantly lower price than its recently restricted H20 model, with mass production to start in June, CNBC reported, citing three unidentified industry sources. The graphics processing unit will be part of Nvidia's latest generation Blackwell-architecture AI processors and is expected to be priced between US$6,500-8,000. Nvidia has been struggling with US restrictions on exports of AI chips.
Nippon takeover of US Steel
US Steel, once the world's biggest steelmaker and an icon for national industrial might, is poised to be acquired by Japanese giant Nippon Steel after President Donald Trump threw his support behind the US$14.9 billion deal, which was blocked by his predecessor Joe Biden. The takeover, still subject to final regulatory approval, was first announced in late 2023. The merger will retain the US Steel name and its headquarters in Pittsburgh, Pennsylvania.
China electric carmaker targets Brazil
Chinese automaker GAC announced its entry int the Brazilian market, where it plans to build a factory and introduce its electric and hybrid models, Reuters reported. Brazil is the world's sixth-largest automotive market, where sales of electric vehicles from Chinese manufacturers like BYD and Chery grew 37 percent in the first four months of this year. GAC International President Wei Haigang said he expects GAC sales to reach 100,000 units in the next five years.
Builder.ai files bankruptcy
Builder.ai, a UK-based AI startup once valued at over US$1 billion, filed for bankruptcy amid deep financial troubles. Backed by Microsoft and Qatar's sovereign wealth fund, the company promised code-free app development powered by artificial intelligence. However, investigations revealed that its operations relied heavily on human engineers in India and Ukraine, contradicting its core automation claim. Builder.ai also inflated its 2024 revenue, reporting US$220 million when actual figures were closer to US$55 million. The accounting exaggeration, alongside lax financial controls and misleading sales reports, triggered investor backlash and ultimately led to the collapse.
X faces temporary outage
Social media platform X, owned by Elon Musk, suffered a temporary outage on Saturday morning, with over 25,000 users reporting issues. It was the platform's second outage in less than a week, raising concerns over its infrastructure. Musk acknowledged the platform's failover systems had failed, vowing to stay "super focused" on resolving the issues. X, formerly Twitter, has experienced frequent disruptions since Musk's 2022 takeover, including a cyberattack-linked outage in March. Musk has pledged to devote his attention 24/7 to his companies after stepping back from involvement with the Trump administration.
Amap ride-hailing service for foreign visitors
Alibaba has announced a new ride-hailing feature under its Amap service, allowing foreign visitors in Chinese mainland to get transport in more than 360 domestic cities. Payments can be made via Alibaba's Ant Group arm or Tencent's WeChat Pay, China's two dominant digital wallets, the South China Morning Post reported. The service supports China's decision to allow visitors from 43 countries to stay visa-free for 30 days.
Doll withdrawal angers fans
Chinese toy company Pop Mart withdrew popular, collectible Labubu dolls, designed by Hong Kong artist Kasin Lung, from the shelves of its 16 UK shops following reports of fights breaking out among overzealous fans vying for limited stock, the BBC reported. The soft dolls, which range in retail price up to £50 (US$68), became a hit trend on TikTok after being shown as fashion accessories by celebrities like Rihanna. Pop Mart said it is working on a fairer system before returning the doll to its stores. The pause angered fans. "It's your fault for drip feeding stock to us, causing this hype," one netizen commented on Pop Mart's Instagram post.
