Daily Buzz: 5 June 2025

Top News

China urges US to get relations back on track

Chinese Foreign Minister Wang Yi, in his first meeting with David Perdue, the new US ambassador to China, said the US must create conditions for bilateral relations to return to a more stable footing, Bloomberg reported, citing a government statement. The meeting came amid stalled trade talks and rising tensions between the world's two biggest economies. Wang reportedly criticized the US for recent actions that he said undermine China's legitimate interests.

On his social media post on Wednesday, President Donald Trump wrote: "I like President XI of China, always have, and always will, but he is very tough and extremely hard to make a deal with."

EU seeks looser Chinese controls on rare earth exports

The EU urged China to ease export controls on rare earth minerals critical in auto production as some European carmakers suspend operations amid a shortage of the minerals. China, which produces about 90 percent of the world's rare earths and industrial magnets, tightened export controls in April as part of its response to US tariffs. The controls, which were not eased when both sides rolled back some tariffs in May as part of a 90-day trade truce, have become a contentious point in US-China trade tensions. EU trade commissioner Maros Sefcovic told his Chinese counterpart Wang Wentao in a meeting in Paris this week that the situation is "alarming."

Revenge for attack on Russian airfields

Russian President Vladimir Putin told President Donald Trump in a 75-minute phone call on Wednesday that his military will respond to Ukraine's weekend drone attack on Russian bomber planes parked at airfields deep in the country. Trump disclosed that part of the call on his social media account, saying the conversation with Putin was good but didn't advance efforts to end the war. Ukraine said it destroyed 20 long-range bombers; US officials put the figure at 10.

'Hell on Earth' in Gaza

The situation for Palestinians in Gaza has become "hell on Earth," the president of the International Committee of the Red Cross told the BBC. Mirjana Spoljaric said the world is not doing enough to end the suffering in the coastal enclave, which is under military assault from Israel and enduring restricted aid flows. What's happening in Gaza surpasses any acceptable legal, moral and humane standard, she said.

Aid distribution sites run by a controversial US-Israeli program closed for a second day, following several days of violence when Israeli gunfire killed scores of Palestinians converging on its food sites.

South Korean stocks, currency rise on election outcome

The election of a new South Korean president sent the benchmark Kospi stock index up almost 3 percent on Wednesday, with the won's rising against the US dollar for a second day. However, government bonds fell, with the 10-year yield dropping 0.10 point. Lee Jae-myung was sworn in as president, promising an end to six months of political chaos and introduce economic stimulus measures.

Top Business

China auto dealers overwhelmed by car glut

The China Auto Dealers Chamber of Commerce said automakers are dumping too many cars on dealers, exacerbating a fierce price war that is eating into their profits. Some dealers have been forced to close, the association said in a statement. Last week, one auto executive said some new cars are being sold by dealers as used vehicles to offload excess inventories.

Separately, five government departments in Beijing issued new guidelines to boost sales of 124 domestically manufactured electric and hybrid models in more rural areas where market potential has yet to be reached. The models are manufactured by carmakers such as BYD, Geely, Aion, Tesla and Xpeng.

China growth forecast to slow

The 38-member Organization for Economic Cooperation and Development said China's economy next year is projected to grow 4.3 percent, down 0.10 point from its previous forecast. It said the effects of global trade tensions most will affect China, the US, Canada and Mexico. The Chinese government has set its growth target this year at around 5 percent.

China approves first domestic HPV vaccine

China's drug regulator has approved the nation's first domestically developed 9-valent human papillomavirus, or HPV, vaccine, used to treat cervical cancer and genital cancers in both men and women. China, which has long relied on foreign pharma for such drugs, becomes only the second country after the US that is capable of supplying 9-valent HPV vaccines.

Economy & Markets

Japan, EU services-sector activity slows

Business activity in Japan's services sector slowed in May but managed to stay in expansion territory. The Jibun Bank's services index of purchasing managers fell to 51.0 from 52.4 in April, though it remained about the 50 percent threshold that separates expansion from contraction. Purchasing managers' confidence was higher, but new business growth in the sector showed its slowest pace in six months.

In the EU, the HCOB Eurozone Composite Purchasing Managers' Index for the services sector fell to 50.2 in May from 50.4 in April, its weakest in two months.

Shanghai travel, spending surge

Shanghai recorded a record number of 104,000 inbound and outbound flights in the first five months of the year, customs authorities reported. The strong number, in part, reflects new global routes. Increased tourism spending is helping the local economy. Over the three-day Dragon Boat Festival just ended, domestic spending rose 6 percent to 42.7 billion yuan (US$6 billion), and duty-free sales and rebates of value-added tax rebates for foreign tourists more than doubled from a year earlier

US private sector job growth hits two-year low

Job creation in the US private sector slowed in May to its lowest level in two years. Jobs fell to 37,000 jobs from a revised 60,000 in April, according to payrolls-processing firm ADP. President Donald Trump once again urged Federal Reserve Chairman Jerome Powell to cut interest rates.

China fuel prices rising

China will raise the retail prices of gasoline and diesel from Wednesday, reflecting changes in global crude prices, the National Development and Reform Commission announced.

Gasoline prices will rise by 65 yuan (US$9) a metric ton, and diesel will go up 60 yuan per ton. China National Petroleum Corp, China Petrochemical Corp and the China National Offshore Oil Corp, the nation's big three oil companies have been directed to maintain stable supplies.

Asset manager sees clouds on horizon

China's stock markets are benefiting from a global investment shift away from US assets, though the outlook for the second half of 2025 is less clear, the South China Morning Post reported, citing Natixis Investment Managers, a money-management firm under France's Groupe BPCE. Despite global economic uncertainties, the probability of a worldwide recession remains low, it said. Mabrouk Chetouane, head of global market strategy at the firm, was quoted as saying that deflationary pressures in China remain a concern and investors are awaiting further fiscal-policy measures from Beijing.

Japan birthrate drops to new low

Japan's birthrate fell to a new low last year, portending problems for the nation's economy and labor force. A report released on Wednesday showed just 686,061 births in 2024, a 5.7 percent drop year from a year earlier and the first time the number fell below 700,000. The fertility rate dropped to 1.15, the lowest on record. A shrinking birthrate means future young workers in the future to support an aging population.

China, too, has an aging population that it is trying to address with policies encouraging parenthood. Sichuan Province has issued a draft proposal for longer maternity and paternity leave.

Corporate

Tesla deliveries slump

May deliveries of China-made Tesla Model 3 and Model Y electric cars, both domestically and for export, fell 15 percent from a year earlier to 61,662 vehicles, following a 6 percent drop in April, according to the China Passenger Car Association showed on Wednesday. However, deliveries rose 5.5 percent from April.

Jinjiang Hotels to seek Hong Kong listing

Shanghai-based Jinjiang International Hotels, which is listed on the city's stock exchange, announced on Wednesday it is seeking a secondary listing in Hong Kong. Funds raised through the initial public offering will be used to repay loans, strengthen overseas expansion and replenish working capital. The group plans to open more hotels in Asia, including Malaysia, according to earlier media reports. Jinjiang shares rose 1 percent in Shanghai on Wednesday.

Amazon invests US$10 billion in US data centers

Amazon announced on Wednesday it will invest US$10 billion in new data centers across the US state of North Carolina, expanding its artificial intelligence capabilities. The move is part the company's strategy of competing with rivals Google, Microsoft and OpenAI.

Tencent helping grads find jobs

With China expecting a record 12 million university graduates this year, technology giant Tencent is actively recruiting interns, according to TechNode news feed. The company is seeking to recruit 10,000 interns this year, focusing on graduates with backgrounds in artificial intelligence, algorithm, cloud computing, gaming and other digital content. As of early March, Tencent had over 55,000 full-time employees, with almost three-quarters of them involved in technology-related roles.

Cartier reveals global data breach

Luxury brand Cartier said a recent global data breach compromised some customer information, including names and birth dates, but it didn't affect financial details. The breach follows a similar disclosure by fellow French luxury brand Dior in May.