Good Morning. Welcome to The Wire’s daily news roundup. Each day, our staff gathers the top China business, finance, and economics headlines from a selection of the world’s leading news organizations.
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The Wall Street Journal
- Former Chinese Chip Boss Gets Suspended Death Sentence in Corruption Case — Zhao Weiguo is the former chairman of a once-highflying semiconductor firm that Beijing backed as part of a push to catch up with the West on technological capabilities.
- U.S. Scraps ‘AI Diffusion’ Rule in Revamp of Biden-Era Chip Curbs — Tech companies including Microsoft and Oracle had spoken out against the rule.
- Tencent Posts Solid Results as AI Investments Start to Pay Off — Tencent Holdings’ revenue growth accelerated in the first quarter as its core gaming business remained strong and ramped-up spending on artificial intelligence began to pay off.
- China Exults in Trump’s Tariff Pullback — Xi presses on with strategy of defiance against trade war ‘bullying’.
The Financial Times
- China’s Baidu in talks to launch robotaxis in Europe — Beijing-based tech rival to Google seeks to test self-driving vehicles in Switzerland and Turkey.
- Exporters ‘shocked and elated’ as China trade cranks back into gear — Businesses fear agreement between Washington and Beijing to slash levies offers only temporary reprieve.
- US warns against using Huawei chips ‘anywhere in the world’ — Commerce department guidance aims to toughen export controls on tech used by China to make AI processors.
- US-China trade ceasefire to drive early Christmas stockpiling — Ports and shipping companies expect surge in demand as retailers take advantage of lower tariffs on Chinese imports.
- China criticises UK trade deal with US — Security conditions in pact agreed by Trump and Starmer seen as targeting Beijing.
- US puts sanctions on companies alleged to be shipping Iranian oil to China — Measures come as Donald Trump offers olive branch to regime in Tehran.
- Opinion: The challenge of using excess global savings — We now seem unable to turn the surplus in some countries into productive investment elsewhere. By Martin Wolf.
- Opinion: How China’s Comac could reshape aviation — Even if it doesn’t challenge Airbus or Boeing on the global stage, strong domestic growth will boost the aircraft maker. By June Yoon.
- Opinion: If the US wants more rare earths, it needs to tackle refining — China has an unmatched dominance in the processing of critical commodities. By Zornitsa Todorova.
The New York Times
- What to Know About Trump’s Latest Changes to Taxes on Small Packages From China — Beginning Wednesday, shipments arriving in the United States from China and Hong Kong worth less than $800 could face 54 percent tariffs.
- Beyond Tariff Truce, China Readies for a Rocky Time With U.S. — Beijing is trying to win over other countries with vows of economic cooperation. But it won’t back down from its territorial claims, experts predict.
- In High-Stakes Negotiations, Trump’s Opponents Are Learning His Patterns — President Trump often takes maximalist positions, only to back down and declare a win. His opponents are catching on.
- Tiny Company With China Ties Announces Big Purchase of Trump Cryptocurrency — The firm, which produces content for TikTok, recorded no revenue last year, but it announced this week that a mysterious stock sale would allow it to invest heavily in the $TRUMP memecoin.
- Chinese Manufacturers Have Been Turning to TikTok Diplomacy — The flow of video between China and the United States raises strange possibilities — whether national image-making or hawking consumer goods.
Caixin
- China’s Exporters Get More Help to Withstand Trump’s Trade War — Regulators are expanding two credit insurance programs to shield businesses from the onslaught and help them shift sales to the domestic market.
- U.S. Tariff Deal Lifts China’s Short-Term Outlook — GDP growth and exports are likely to exceed expectations, but finding a durable solution to U.S.-China tensions will be challenging.
- U.S. Blocks Use of Huawei’s Most Advanced Chips — The Chinese tech giant’s Ascend series, which can power AI models, were likely developed or produced in violation of U.S. export controls, the commerce department says.
- China Reluctant to Resume U.S. Farm and Energy Imports After Tariff Deal — Lingering levies of more than 20% make the products too expensive for Chinese buyers.
- What the China-U.S. Tariff Truce Doesn’t Solve — As part of the truce, the U.S. will reduce its tariff on Chinese imports to 30% from a previous average of 145%.
South China Morning Post
- China and Russia sign nuclear reactor deal to fuel lunar research station — Agreement energises plans for joint base, setting stage for long-term human presence on the moon.
- Beijing summons JD.com, Meituan, Alibaba’s Ele.me as food delivery feud heats up — Five government agencies, led by the State Administration for Market Regulation, urged the instant commerce giants to follow competition regulation.
- Times have changed: US-China talks show Beijing has refined the art of dealing with Trump — Analysts say China has emerged as the ‘only credible global counterweight to Washington’, wielding the ability to walk away as US alienates partners.
- China’s Zhipu eyes expansion via Belt and Road Initiative as global AI market heats up — Zhipu AI’s plan reflects intensifying efforts by both Chinese and US companies to widen the global adoption of their AI systems.
- Opinion: Why the US-China trade ceasefire won’t save Christmas — Trump’s trade war has already done harm, disrupting the months-long process that gets Chinese-made toys in US stores before the holidays. By Angela Huyue Zhang and S. Alex Yang.
Nikkei Asia
- Trump tariff twists drive Chinese manufacturers to Southeast Asia — Reshuffling of supply chain to stay as uncertainty looks set to continue.
- Japan, Netherlands win as China’s chip tool imports surge on US tensions — Shipments from Singapore, South Korea and Malaysia also rose in 2024.
- ASEAN can be mediator in US-China rivalry: Indonesia’s Yudhoyono — Multilateralism is the key to preventing World War III, ex-president says.
- China’s robot makers aim to automate Japan’s industrial heartland — Manufacturers see growing demand for collaborative robots amid labor crunch.
- Dual-use tech poses national security risks for businesses: ex-US official — Thea Kendler says export controls necessary to curb China’s military advances.
Bloomberg
- DeepSeek’s ‘Tech Madman’ Founder Is Threatening US Dominance in AI Race — The company’s sudden emergence illustrates how China’s industry is thriving despite Washington’s efforts to slow it down.
- Trump’s Pause on China Tariffs Is Still a ‘Huge Nightmare’ for Small Businesses — Tariff rates remain sky high by historical levels and will keep pressuring profits, small business owners say.
- Senator Flags China Ties in Program to Aid Defense Startups — Recipients under a pair of Pentagon programs to bolster small businesses have “troubling ties” to China, including a company whose leader also served on the board of a Chinese state-backed investment vehicle, a Senate investigation has concluded.
- China Surrounded Xi’s Aide With Seasoned Experts to Seal US Deal — China’s surprisingly quick agreement with the US to wind back punitive tariff rates put a spotlight on a Chinese negotiating team that features decades worth of technical trade experience alongside a top aide of President Xi Jinping.
- Opinion: The China Trade Deal Doesn’t Solve the Fed’s Problems — The central bank can’t rescue the economy quickly with the White House pursuing inflationary trade policies. By Bill Dudley.
Reuters
- SiCarrier – Huawei partner in chips – seeks $2.8 billion in funds, sources say — SiCarrier was until recently little known, but it has become the most talked-about company in Chinese semiconductor circles this year as the breadth of its planned product range and ambitions emerges.
- Beijing has issued first rare earth magnet export permits, Volkswagen suppliers on the list — Export licenses are granted for each customer and it is unclear whether all clients of the four firms have been cleared by Beijing. One of the sources said permits were only issued to suppliers for customers in Europe and Vietnam.
- How China’s chip equipment manufacturing sector stacks up — Its efforts to become a one-stop shop for all tools needed to semiconductors illustrate how the sector – still relatively young in China – is responding to President Xi Jinping’s call to reduce the country’s reliance on foreign suppliers.
Other Publications
- Foreign Policy: China’s Economic Officials Are Trying to Speak Like Human Beings — A softer communication approach may have helped the Geneva talks.
- Foreign Affairs: When Trade Wars Become Shooting Wars — How Tariffs Destabilize an Already Dangerous World.
- The Washington Post: White House eased China tariffs after warnings of harm to ‘Trump’s people’ — The president has backtracked repeatedly on his tariff policies, creating a whiplash with downsides and few clear benefits so far.
- The Atlantic: Silicon Valley Braces for Chaos — For all that Silicon Valley has to offer, these engineers are souring on America, he said—before long, if paid more to do the same job in China, “they will go back.”
- The Economist: A great trade victory over America is being celebrated in China — But its negotiating triumph comes with two stings in the tail.
- Brookings: The impact of US tariffs on North American auto manufacturing and implications for USMCA — Circumvention concerns, especially from China, are increasing, which push the U.S. to seek closer tariff and investment screening alignment with Mexico and Canada ahead of the 2026 USMCA review.
