Daily Buzz: 10 June 2025
Top News
China-US trade talks
China-US trade talks in London that President Donald Trump said are "not easy but going well" were extended to second day. No details of the meeting were released when the first day of talks broke up on Monday. Negotiations between the world's two largest economies are aimed at getting stalled negotiations back on track and taking steps to resolve differences over tariffs, export controls and other trade restrictions. Chinese Vice Premier He Lifeng is leading the Chinese delegation; the US side is helmed by Treasury Secretary Scott Bessent. It is the second meeting after an earlier one in Geneva agreed to a 90-day truce in the trade war to facilitate talks.
US steps up military presence in LA
The Pentagon activated 700 Marines in the Los Angeles area to buttress the federal response to continuing protests against US immigration policies. They join 2,000 National Guardsmen earlier called up by President Donald Trump. California sued the Trump administration, claiming the federal government's intervention is unwarranted by conditions on the ground and is inciting an escalation of unrest. State Governor Gavin Newsom called Trump "unhinged;" Trump called Newsom "grossly incompetent" and said he should be arrested.
California has the largest population of undocumented migrants in the county and has long been a "sanctuary state" that seeks to protect their rights.
Thunberg, other activists detained by Israel
Swedish climate activist Greta Thunberg, an EU parliamentarian and 10 other members of the so-called Freedom Flotilla Coalition were detained after the Israeli military diverted the charity ship that they were aboard from its destination in Gaza. The group said it was delivering humanitarian aid to Palestinians. Israel maintains a naval blockade along the coastal enclave.
Top Business
China exports rise as tariffs shift markets
China's exports in May rose 4.8 percent in US dollar terms from a year earlier, while shipments to the US fell 10 percent, according to customs figures. Total imports for the month fell 3.4 percent, while those from the US slid 4.7 percent. China's efforts to diversify its markets are showing results. Exports to Southeast Asia jumped 15 percent, and shipments to the EU rose 12 percent.
Chinese exports of rare earths in May jumped 23 percent from April, a 12-month high, even as some foreign countries claim government curbs on outbound shipments of critical minerals are curtailing some industrial production.
Foreign-invested companies in China logged 4 percent year-on-year growth in exports and imports in May, marking the fourth consecutive month of gains, Xinhua reported. Total trade volume by these companies was 1.11 trillion yuan (US$154.5 billion), according to the General Administration of Customs. In the first five months of 2025, over 73,000 foreign companies in China were involved in export and import activities.
China shipments to US plummet
Ocean cargo shipments from China to the US through West Coast ports dropped 29 percent in May from a year earlier, according Descartes, a supply-chain company that analyzes customs data. It was the steepest decline since the Trump administration imposed punitive tariffs on China. "The effects of U.S. policy shifts with China are now clearly visible in monthly trade flows," Descartes said in a statement.
Chinese car sales rise, capture record share of UK market
Chinese automakers captured a record 9.4 percent of the UK market in May, led by new energy vehicles and electric-car maker BYD, the British Society of Motor Manufacturer and Traders said. BYD sales in the month surged 408 percent from a year earlier. Other major companies doing well in the market are Geely and Chery Auto.
Meanwhile, the China Passenger Car Association reported that domestic car sales in May rose 13.3 percent from a year earlier to 1.9 million vehicles. Car exports increased 13.5 percent, reversing a 2 percent decline in April.
China seeks to improve daily lives
China unveiled guidelines to improve the lives of citizens, addressing difficulties faced by some. They include an improvement in social insurance coverage for flexible-hour workers, migrant workers and others in more non-traditional jobs; better methods of identifying households in need and providing assistance; the elimination of restrictions on household registration, known as hukou, for those paying into social insurance at their workplaces; the restructuring of over 1,000 high schools to provide a higher quality of education; and improved medical services in rural areas.
US-India trade talks extended amid progress
US-India trade negotiation team were extended a day, signaling progress toward a limited trade deal after a June 9 deadline lapsed. The talks are being held under the threat of Trump administration's 26 percent reciprocal tariffs on Indian imports.
Separately, India granted Elon Musk's Starlink an operating license after months of delays tied to national security concerns. The decision clears a major regulatory hurdle and brings Starlink closer to launching commercial satellite Internet services in India.
Economy & Markets
Chinese consumer prices dip
China's consumer prices in May slipped 0.l percent from a year earlier, the fourth straight month of decline. Declining gasoline price and the price war in the auto industry were blamed for part of the drop. However, core inflation, a measure central banks often use that excludes volatile food and energy prices, rose 0.6 percent in May. At the factory gate, producer prices fell 3.3 percent, their steepest decline in 22 months. It was attributed to falling international crude prices and a seasonal slowdown in demand for energy and raw materials.
Mergers and acquisitions surge
China's stock market is seeing a sharp rebound in mergers and acquisitions, driven by government policy support and streamlined regulatory procedures. According to Soochow Securities, the number of completed deals so far this year has surpassed the 2024 total. The consolidation is especially noted in state-owned companies. The China Securities Regulatory Commission has implemented rules that simplify and expedite approvals for mergers and acquisitions.
Economists in upbeat mood
The outlook of chief economists rose into positive territory this month, according to the Yicai Chief Economists Confidence index. It showed confidence at 50.5, up from 49.8 in May. The 50-mark threshold separates positive and negative sentiment. Yicai Global attributed the gain to signs that trade tensions between China and the US may be easing.
Loans in China seen rising
New yuan-denominated loans in China are expected to have more than tripled to 850 billion yuan (US$118.27 billion) in May from April, according to a survey of 18 economists by Reuters. It cited the array of monetary easing measures implemented last month, including interest rate cuts and major liquidity injections. Broad M2 money supply, which measures cash in circulation, household savings and certain time deposits, is forecast to have increased 8.1 percent. The data are due out early this week.
Corporate
Boeing resumes China deliveries
A new Boeing 737 Max jet touched down in China bound for delivery to Xiamen Airlines. The landing marked the resumption of Boeing shipments to China after a halt in April at the height of the tariff war with the US.
Apple fails to impress investors
Apple's 2025 Worldwide Developers Conference was spare on groundbreaking announcements in what analysts called a back-to-basics event. One message stood out: Apple's iOS system needs updating. The iOS 26 redesign, called Liquid Glass, introduces a suite of improvements designed to make navigation smoother and more intuitive. In other updates, live translations are now integrated into Messages, FaceTime and other core apps; the phone app is being streamlined; and photos got a visual overhaul. Apple shares in New York lost 1.2 percent on investor disappointment.
Zelgen-Merck marketing deal
Suzhou-based Zelgen Biopharmaceuticals granted Ares Trading, a Swiss unit of Merck, exclusive rights to market its new biologic cancer drug in the Chinese mainland. Ares will pay up to 250 million yuan (US$35 million) in licensing fees, including a 50-million-yuan upfront payment, Yicai Global reported. Zelgen will pay Ares a percentage of the product's net sales. The drug is still awaiting regulatory approval.
Starbucks lowers some prices in China
US coffee chain Starbucks said on its Weixin online account that prices of its iced and non-coffee drinks in China will drop by an average 5 yuan (70 US cents) amid competition and more cautious consumer spending. The new price list will take some drinks to as low as 23 yuan, the post said. Domestic rivals such as Luckin Coffee and Cotti have priced some of their drinks below 10 yuan, and coupons offered in the competitive food-delivery market can take the price of a drink down to as little as 2.9 yuan, Reuters reported. China is Starbucks' second-biggest market.
Midea recalls air conditioners
China's Midea Group has instituted a voluntary recall of more than 1.2 million U-shaped window air conditioners sold in North America after a report from US product-safety regulators said mold was forming on fan blades due to poor water drainage. Some 1.7 million units were sold in the US and nearly 46,000 in Canada. The affected models, launched in 2020, were priced at up to US$500.
Midea said only 152 complaints have been recorded, or just 0.01 percent of sales. The company maintains that the product meets all North American safety standards and attributed any occurrence of mold to extreme humidity in specific environments rather than product defects. Midea is offering refunds, replacement parts or free repair services.
