Daily Buzz: 2 June 2025
Top News
China criticizes hawkish US comments
China rebuked US Defense Secretary Pete Hegseth for telling the Shangri-La Dialogue in Singapore that China is sowing division in Asia, specifically referring to Taiwan and the South China Sea. A Foreign Ministry spokesperson said the remarks reflect a "Cold War mentality." The US is the "primary factor undermining the peace and stability in the Asia-Pacific," the spokesperson said, adding that the Taiwan question is entirely China's internal affair and no country has a right to interfere.
European nations interested in closer engagement with Asian security also chafed at the overbearing attitude of the US after Hegseth essentially told them to focus their military sending on their own backyard. The annual meeting in Singapore is focused on global security issues.
OPEC+ raises production
Saudi Arabia, Russia and six other leading oil producers that comprise OPEC+ agreed on Saturday to increase daily crude production by 411,000 barrels next month. The July increase is the third consecutive monthly hike in output. The eight members, also including Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, set the July output on a teleconference call. In a statement, OPEC+ cited a steady global economic outlook, healthy market fundamentals and low inventories for the July increase.
Palestinians killed at food distribution site
More than 30 Palestinians were killed and 170 injured when Israeli forces opened fire on a crowd of Palestinians converging on a food distribution site operated by a contentious US-Israeli project in southern Gaza, according to the Palestinian Ministry of Health and a nearby Red Cross hospital. Israel denied firing at civilians.
Hamas said it is ready to immediately hold a fresh round of indirect negotiations on the conflict after the US rejected its latest response to a US-Israel temporary ceasefire proposal. Hamas had repeated demands that any ceasefire led to a permanent cessation of hostilities, the withdrawal of Israeli troops from the coastal enclave and an unrestricted flow of aid to Gaza.
US proposal for Iran nuclear talks
The White House said it has sent Iran a proposal for a nuclear deal. Iran acknowledged receipt of the plan but made no comment. The International Atomic Energy Agency found Iran now possesses over 400 kilograms of uranium enriched to 60 percent purity. If purity were increased to 90 percent, that volume of material would be sufficient to make 10 nuclear weapons, the BBC reported, citing an agency document it has seen.
Russia-Ukraine talks
Peace talks between Russia and Ukraine are scheduled to resume today in Istanbul, but there are little hopes of any breakthroughs. Russia said it wanted a second round of talks after sharp US criticism over its continuing missile and drone attacks on Ukrainian cities. On the eve of the talks, Ukraine launched its biggest long-range attack of the war, striking 40 Russian warplanes at four military bases. The first round of bilaterial talks produced only one agreement – an exchange of prisoners.
Polish election a cliffhanger
The outcome of Poland's presidential runoff election between centrist Warsaw Mayor Rafal Trzaskowski and nationalist Karol Nawrocki on Sunday is too close to call, according to exit polls. The results are expected to determine Poland's relationship with the EU.
Top Business
Truce urged in auto-price war
China on Saturday called for a halt in the nation's auto-industry price war, saying there are no winners in such cut-throat competition and no sustainable future for the industry. The price war, which has been simmering since 2023, accelerated recently after electrical vehicle maker BYD announced price reductions on more than 20 models. The industry and information technology ministry said it would crack down on unfair competition and take regulatory steps, if necessary, to force a truce. The China Association of Auto Manufacturers weighed in on the issue, saying price wars hurt profitability and efficiency. Shares of listed automakers have fallen on fears the price war will intensify.
EU, Australia slam higher US tariffs on steel, aluminum
The EU said it "strongly regrets" the decision by US President Donald Trump to double tariffs on imported steel and aluminum to 50 percent, effective June 4. A statement released by the European Commission, said the European bloc is prepared to respond with countermeasures. Australia, which exported steel and aluminum products valued at more than A$400 million (US$266 million) to the US last year, said the tariffs are unjustified and "not the actions of a friend."
US tariffs on specific products, like automobiles, steel and aluminum, are not covered by a last week's US trade court ruling that Trump has no constitutional authority to impose blanket tariffs on countries.
Economy & Markets
China manufacturing activity notches up
China's manufacturing activity in May rose slightly but remained below the threshold of growth, an official survey showed on Saturday. The official purchasing managers' index for manufacturers rose to 49.5 in May from 49.0. The 50-mark separates growth from contraction. The index for the non-manufacturing sector came in at 50.3, down 0.1 percentage point from April.
South Korean exports fall
South Korean exports in May fell 1.3 percent from a year earlier on a drop in shipments to the US and China, the nation's two biggest markets. Industry and Trade Minister Ahn Duk-geun blamed the decline on US tariffs and their effects on global trade. South Korea is Asia's fourth-largest economy after China, India and Japan. Its biggest exports are integrated circuits and automobiles – the latter hit by 25 percent US tariffs on vehicle imports.
Hong Kong regulates stablecoins
The Hong Kong government's Stablecoins Ordinance came into effect, introducing a licensing regime for issuers of stablecoins, a type of cryptocurrency usually pegged to a government currency like the US dollar and designed to maintain a constant value. The law stipulates that anyone issuing stablecoins in Hong Kong or anyone issuing stablecoins anywhere in the world backed by Hong Kong dollars must get a license. Stablecoins act as a pricing unit and liquidity layer for blockchain-based financial systems.
Corporate
Bohai Auto acquisitions
Bohai Automotive Systems announced plans to acquire stakes in four auto-parts firms in cash and share deals aimed at strengthening its position in the components market. The acquisitions include 51 percent stakes in BAIC Moulding Technology and Hainachuan Adient Seating, a 100 percent stake in Inalfa Smart Mobility and 50 percent share of Leoni Wiring Systems. All four targets are leaders in specialized areas of the auto-parts sector. Bohai Auto shares in Shanghai will be suspended when China markets reopen on Tuesday after a holiday to allow the transactions to proceed.
US, China battle over Congo lithium
KoBold Metals, a US mining exploration company backed by tech titans Bill Gates and Jeff Bezos, is pursuing a US$1 billion investment to buy Australian-based AVZ Minerals's stake in the contested Manono lithium project in the Democratic Republic of Congo. The Congolese government terminated its partnership with AVZ and said it planned to transfer exploration rights to a joint venture between a Congolese state-owned company and China's Zijin Mining, which controls the northern section of the deposit.
The lithium deposit is believed to be one of the world's largest. The battle for control reflects growing global demand for lithium, which is crucial in making batteries, electric vehicles and other consumer electronics.
China has become the largest investor in the Congo, which has vast reserves of cobalt, lithium, uranium and other industrial minerals. Control of critical minerals has become a contentious point in US-China trade relations.
Kingsoft earnings miss estimates
Beijing-based Kingsoft Corp Ltd, a prominent player in the communication services sector, missed analysts' estimates with a 0.2 percent drop in first-quarter profit from a year earlier to 285 million yuan. Revenue year-on-year rose 9 percent to 2.1 billion yuan but fell 13 percent from the fourth quarter of last year on rising research and development costs. Revenue in its gaming sector grew 14 percent from a year earlier, supported by anime games such as "Snowbreak: Containment Zone" and its new release "JX3 Online." The company's shares dropped 1.6 percent in Shanghai trading on Friday.
JP Morgan chief flags "enemy within"
Jamie Dimon, chief executive of JP Morgan, the largest US investment bank, said the US is making a mistake if it thinks China will capitulate to American pressure. "I just got back from China last week," he told a US forum. "They're not scared, folks." He also warned about "the enemy within" and said the US needs to "get its act together" on geopolitics and trade.
