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
- U.S. Plans to Use Tariff Negotiations to Isolate China — Treasury Secretary Scott Bessent wants trading partners to limit China’s involvement in their economies in exchange for concessions on reciprocal tariffs.
- Nvidia Says U.S. Implements Chip Export Restrictions to China, Warns of $5.5 Billion Charge — The U.S. government ”indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China,” Nvidia said.
- China’s Economy Grew Before Tariffs Kicked In — The slowdown is set to intensify as the trade war between Washington and Beijing heats up.
- Boeing Shares Rebound From Loss After China Cuts Off New Orders — Boeing planes earmarked for delivery to China would amount to a $1.2 billion cash drain if the orders are cancelled, Bernstein Research estimated.
- Boeing Hit From All Sides in Trump’s Trade War — China tells domestic airlines not to place new orders for Boeing jets, adding pressure to the struggling American plane maker.
- Opinion: Trump Misunderstands the ‘China Shock’ — Beijing, not free trade more generally, is the reason America’s factories declined. By William A. Galston.
The Financial Times
- Nvidia to take $5.5bn hit as US clamps down on AI chip sales to China — Trump administration’s curbs send chipmaker’s shares sliding in after-hours trading.
- EU warns over unsafe cosmetics imported from China — Bloc registers steep rise in products purchased online not meeting safety standards.
- China defies Trump’s tariffs with strong first-quarter growth — Exporters frontload shipments to beat levies as US president says ‘ball’ is in Beijing’s court to start talks.
- Europe helped teach China to make cars. Now the tables are turning — The EU is trading market access for expertise in key technologies, just as Beijing once did.
- Trump threatens to hit critical minerals with tariffs — US president could escalate trade conflict with Beijing by launching probe into supplies.
- Trump trade war could challenge US credibility, says Jamie Dimon — JPMorgan chief tells the FT that Washington and Beijing ‘should engage’ as tariffs escalate.
- Opinion: Trump has given BYD the edge over Tesla — Chinese carmaker’s absence from the US, once seen as a weakness, has turned into an asset. By June Yoon.
The New York Times
- Not Just ‘Rare Earths’: U.S. Gets Many Critical Minerals From China — Beijing’s ban on exporting six valuable minerals highlights America’s reliance on China for many raw materials that Washington has designated “critical.”
- A U.S.-China Trade War With Students and Tourists as Potential Pawns — With travel warnings and revoked visas, the two superpowers locked in a bruising trade war may make students and tourists their bargaining chips.
- Taiwan’s Chip Companies Are Caught in the U.S.-China Tariff War — President Trump has threatened tariffs on Taiwan and the chip industry. China has signaled it will not let the trade war keep it from the technology it needs.
- China Girds for Economic Stress of Trump’s Tariffs — The economy grew steadily from January through March, but U.S. tariffs pose a risk for China in the coming weeks and months.
- Hong Kong Suspends Packages to the U.S., Wading Into the Trump Trade War — The move comes before President Trump’s planned imposition of new tariffs on small packages sent to the United States from Hong Kong and China.
- Nvidia Says U.S. Will Restrict Sales of More of Its A.I. Chips to China — The restrictions are the first major limits the Trump administration has put on semiconductor sales outside the United States, toughening rules created by the Biden administration.
- Opinion: Donald Trump’s Tariffs Will Only Strengthen China’s Hand — China’s e-commerce ecosystem illustrates how Trump’s tariffs only strengthen that country’s hand. By Moira Weigel.
- Opinion: Trumponomics Is a Delusion — Why an effort to reindustrialize America is likely to fail. By Kyla Scanlon.
Caixin
- Trade War Clouds Hong Kong’s Future as China’s Global Gateway — Rising tensions between the world’s two largest economies are testing the city’s role as a launchpad for Chinese mainland tech firms aiming to expand abroad.
- L’Oréal Plans Major Layoffs in China Amid Sales Slump — French beauty giant blames poor travel retail sales for holding back its growth in Asia.
South China Morning Post
- China-US relations: zero-sum view misguided, Jake Sullivan says in Trump policy critique — Former national security adviser credited managing China competition, in part, to time spent in cities around the world with China’s Wang Yi.
- China, Malaysia entering ‘golden era’, Xi Jinping says as he meets with Anwar Ibrahim — Closed-door meeting follows welcome ceremony on Wednesday morning at national palace, where China’s president met Malaysia’s king.
- Faced with Donald Trump’s hostility, is the European Union pivoting towards China? — The debate has not escaped notice in Washington, where several US officials have warned the bloc against turning to its No 1 enemy.
- China’s DHgate e-commerce app rises in US app store rankings amid Trump tariffs — ‘There’s nothing a Chinese factory can’t make,’ a TikTok user says in a video purportedly showing suppliers of designer fashion brands.
- China appoints new trade representative as US tariff war heats up — Li Chenggang will replace Wang Shouwen as China’s top international trade negotiator at the Ministry of Commerce.
Nikkei Asia
- U.S. delisting risk for Chinese shares resurfaces: 5 things to know — Trump looks to expand restrictions on Chinese investments in the U.S..
- Xi Jinping, insulated from critics, embraces tariff war with Trump — Chinese leader is driven by sense of duty to protect party and own authority.
- Chinese soldiers captured by Ukraine claim no connection to Beijing — Russia set a ‘trap’ with offers of money, fighters tell press conference.
Bloomberg
- China Open to Talks If US Shows Respect, Names Point Person — The fate of the global economy and financial markets hinges in large part on whether the US and China can find a way to avoid a protracted trade war.
- China Stares Down Boeing Parts Shortage While Comac Stockpiles — China is hunkering down for a trade war winter without American-made jets and aircraft parts.
- China Outs US Hackers for Attack, a New Frontier in Spy Games — China’s outing of alleged US National Security Agency hackers marks a major escalation in the ongoing tit-for-tat between Chinese and American intelligence agencies, according to analysts.
- China Told by EU Business Body to Overhaul Its Industrial Policy — China needs to revise its industrial policies if it wants to avoid further backlash and build economic ties internationally as Donald Trump’s tariffs upend the global trade system, according to a European business group.
- Opinion: China’s Boeing Ban Is Inviting Scrutiny on Its Own Planes — Should the US allow suppliers such as GE and Honeywell to continue to provide key components for the C919? By Thomas Black.
Reuters
- Shein’s tariff-busting shift hits home in Chinese factory hub — Three factory bosses along with four local downstream suppliers said Shein’s local orders were in decline, pointing the finger at moves to diversify production to Vietnam.
- US-China decoupling is crossing a Rubicon — For the past decade, American administrations have tempered their references to China as an adversary by also talking up how the Asian country could be a potential partner. That optimism is largely gone.
- Nvidia kept some China customers in the dark about new US chip clampdown, sources say — The export controls threaten Nvidia’s business in China, one of its largest markets. Nvidia had secured $18 billion of H20 orders since the start of the year, according to one of the two sources and a third source.
Other Publications
- The Economist: Xi Jinping’s Trump-sized puzzle — For all its strength and swagger, China is struggling to handle an impulsive America.
- Foreign Affairs: The Age of American Unilateralism — How a Rogue Superpower Will Remake the Global Order.
- POLITICO: ‘Everything’s on the table’: Wall Street may be next battle in Trump v. China war — Such a move could come at a precarious moment. The markets have already been rattled by the trade war, and mass delistings could shock investors even more.
- The Washington Post: Here’s what the U.S. imports from China and what could get pricier with tariffs — The goods the U.S. imports from China more than other countries.
- The Guardian: China to snub UK energy summit amid row over infrastructure projects — Absence of world’s biggest clean energy producer will be welcomed by US pushing oil and gas exports.
