Weekend Buzz
Top News
US-China trade strains
US President Donald Trump on Friday accused China of violating the temporary truce in their bilateral trade war, saying, "So much for being Mr Nice Guy." No details were provided, but US Trade Representative Jamieson Greer told CNBC that China has been slow in complying with terms of the agreement, which rolled back tariffs for 90 days to create an atmosphere more conducive to talks.
China, in turn, rebuked the US for "discriminatory" restrictions on chip exports. "China has repeatedly raised concerns with the US regarding its abuse of export-control measures in the semiconductor sector and other related practices," Chinese embassy in US spokesperson Liu Pengyu told NBC News.
US Treasury Secretary Scott Bessent said earlier that a trade deal with China is unlikely to be completed until there are direct talks between Trump and Chinese President Xi Jinping. Relations strained after the US said it would "aggressively" revoke visas for Chinese students and banned jet-engine exports to China.
Trump to double steel tariffs
President Donald Trump announced the US will double its current tariff on steel imports to 50 percent to support the domestic steel industry. He was speaking at a rally marking the takeover of ailing US Steel by Japan's Nippon Steel, which will maintain US production. Existing 25 percent steel levies have hurt producing nations, with Canada, Brazil and Mexico the top steel exporters to the US.
Starvation in Gaza
The UN's humanitarian chief told the BBC in an interview that the population in Gaza is being subjected to "forced starvation" by Israel. Tom Fletcher said it is up to courts to determine if that constitutes a war crime.
Israel began to allow limited aid into Gaza last week after an almost three-month blockade, but aid being delivered by a new US-Israeli group has suffered from stampedes of hungry Palestinians at food distribution points.
Meanwhile, Hamas said it is studying the latest US plan for a ceasefire in Gaza, endorsed by Israel, even though it fails to meet the group's core demands. The plan purportedly includes a 60-day ceasefire and an exchange of 28 Israeli hostages for 125 Palestinians held in Israeli jails.
Shangri-La Dialogue begins
The 22nd annual Shangri-La Dialogue meeting in Singapore, which brings together national leaders and top military officials from 47 countries to discuss security issues, is underway this weekend. French President Emanuel Macron delivered the keynote address last night. The meeting in recent years has focused on security visions presented by superpowers China and the US. US Secretary of Defense Pete Hegseth is among the 500-plus delegates; his Chinese counterpart is not, though a Chinese delegation is present. Among the topics expected to be discussed are the Russia-Ukraine conflict and simmering India-Pakistan tensions.
US-Iran negotiations
US President Donald Trump said nuclear talks with Iran could be close, but that looked in doubt after Tehran dismissed his latest vision of the outcome as "fantasy." Trump said he wants a deal that will allow the destruction of "whatever we want," including nuclear research labs.
Top Business
Chinese ban on Japanese seafood may be lifted
China and Japan are close to a deal that could see China lift its two-year ban on seafood imports, both sides said. The ban came after Japan discharged treated radioactive waste from the crippled Fukushima nuclear power plant into the sea. Some of the plant's reactors were destroyed after the earthquake and tsunami in 2011. China and Japan have made "substantial progress" in recent discussions related to the safety of Japanese aquatic products, a Chinese Foreign Ministry spokesman said.
Warning to US carmakers
US automakers, including Tesla, must manufacture vehicles domestically without imported parts, President Donald Trump said on Friday. Electric carmaker Tesla has a major assembly plant in Shanghai and uses some foreign-made parts in its US production. The Trump administration this year imposed a 25 percent tariff on imported vehicles and auto parts.
Electronics leads China's industrial growth
Output of major electronics manufacturers China in the first four months of the year rose 10.1 percent, outpacing growth in the nation's broader industrial sector, according the Ministry of Industry and Information Technology. Gains were led by revenue from microcomputers and integrated circuits, but mobile phone production declined 6.8 percent.
AI nuclear warhead inspector
Chinese scientists have developed an artificial intelligence system that can distinguish real nuclear warheads from decoys, marking the world's first AI-driven solution for arms control verification, the South China Morning Post reported, citing a paper published by researchers at the China Institute of Atomic Energy.
Economy & Markets
Shanghai exports, imports rise
Shanghai's exports in April rose 17.1 percent from a year earlier, while imports were up 8.1 percent, Shanghai Customs reported. For the first four months of the year, exports and imports each gained 10 percent. Privately owned companies accounted for 70 percent of total trade.
Inflation and Fed independence
The inflationary spike that many feared might occur on the heels of US President Trump's global tariffs on imports failed to materialize in April. The personal consumption expenditures price index, the key indicator for the Federal Reserve, increased 0.1 percent, putting annual inflation at 2.1 percent. Data from the Commerce Department showed personal income rose 0.8 percent in the month but consumer spending slowed to a 0.2 percent increase.
The Fed will be looking at figures like these and not listening to political exhortations, the central bank made clear in a statement released after Fed Chairman Jerome Powell spoke with Trump, who repeated demands for lower interest rates.
US growth, when measured by the average of output and income data, contracted 0.2 percent in the first quarter. The headline GDP rate, announced last month, was a contraction of 0.3 percent.
Global investment in China
Global investors are focusing on Chinese market leaders in technology and energy, the South China Morning Post reported, citing US investment bank JP Morgan. Investments are going into companies related to car manufacture, robotics and renewable energy, according to an exclusive interview with Kwang Kam Shing, Hong Kong chief executive for the bank's operations in North Asia. She said many investors are impressed at how "the supportive business ecosystem in China has nurtured entrepreneurs and innovators."
Separately, Aaron Costello, head of Cambridge Associates for China, told the newspaper that global investors are reassessing US-heavy portfolios and looking at undervalued equities in Hong Kong and Chinese mainland to "provide defense" amid geopolitical tensions.
China unveils connectivity plan
China has launched a nationwide initiative to create seamlessly coordinated connectivity across its computing infrastructure by 2028. A plan released by Ministry of Industry and Information Technology sets targets for unified standards, shared resources and smart scheduling across regions, institutions and platforms.
Deep Dive
Trump's war on science leaves China in the catbird seat on research and development
Young Chinese researchers working in US universities are worried their science-project funding will be cut or abolished. Back home, it's a different story.
(Click the headline to read full article.)
Corporate
Chagee reports strong first quarter
In its first earnings report since listing on the Nasdaq exchange in April, Chinese premium teahouse chain said net income in the first quarter rose 14 percent from a year earlier to 677.3 million yuan (US$93.3 million) on a 35 percent revenue gain to 3.39 billion yuan. As of the end of March, the company was operating 6,681 teahouses. Chief Executive Zhang Junjie attributed the strong performance to continuous global expansion, product innovation and a thriving user ecosystem.
US retailers push tariff costs onto Chinese suppliers
Major American retailers, including giants like Walmart and Target, are now demanding that their Chinese and Southeast Asian suppliers absorb at least half the costs incurred by Trump administration import duties, according to the South China Morning Post. Initially, some retailers agreed to swallow the full tariff impact amid pressure to keep prices stable for consumers, but balance sheet strains are beginning to pinch.
Clothing group Gap, the largest specialty retailer in the US, told CNN that if President Donald Trump's 30 percent tariffs on China and 10 percent on imports from other countries remain at current levels, they could cost the company up to US$150 million this year.
Rocket breakthrough
Sepoch Technology Co, China's commercial space company, said on Thursday that its first reusable rocket fueled by liquid oxygen-methane propulsion completed its maiden sea-based flight and recovery test. The test of the rocket, the first of its kind in China, was conducted in the eastern province of Shandong and is considered a breakthrough in the development of reusable liquid-fueled rockets, the company said.
LinkedIn layoffs
LinkedIn, the popular business and employment social media site, laid off 270 employees in California as part of a broader wave of job reductions by parent Microsoft, which announced 6,000 global layoffs earlier in May.
