Daily Buzz 10 April 2025

Top News

US-China trade war deepens

US President Donald Trump announced a 90-day pause on higher selective tariffs for most countries except China, whose tariffs he raised to 125 percent from 104 percent. He said a universal base tariff rate of 10 percent imposed on all global imports would remain in force.

The decision, which sent US stock markets soaring, came hours after China announced it was increasing its tariffs on US goods to 84 percent from 34 percent, matching the latest incremental hike in Trump tariffs on the nation.

China also added 12 US companies, including American Photonics and Novotech, to its export-control list for having "engaged in activities that may endanger China's national security and interests."

Six more US firms, including Shield AI and Sierra Nevada Corp, were added to China's "unreliable entity list."

China's Ministry of Culture and Tourism also issued warnings, alerting Chinese tourists to "assess risks" due to the deterioration of China-US economic and trade relations, and domestic security situation in the US.

Explaining his temporary backflip on selective country tariffs to allow time for trade negotiations, Trump said that was part of his plan all along and countries that don't impose retaliatory tariffs "will be rewarded."

His temporary policy reversal squarely focuses the tariff war to the US and China.

The S&P 500 stock index in the US surged 9.5 percent, its biggest one-day bounce in 17 years.

EU tariff retaliation

The European Union on Wednesday voted to approve 25 percent reciprocal tariffs on a wide range of US products, including steel and aluminum, orange juice, tobacco and yachts, in response to 25 percent tariffs imposed by the US on imports of steel and aluminum from the EU.

The vote came before President Trump announced a 90-day pause on country-specific tariffs, which places a moratorium on the 20 percent tariff imposed on the EU. It isn't clear whether the US duties on steel and aluminum are affected by his decision or whether the EU duties will come into effect on April 15 as planned.

The European Commission said, "The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial," the European Commission said.

Top Business

Record ETF net inflow

China's state-owned funds and investment firms have led a wave of buying in exchange-traded funds, with net inflow of 175 billion yuan (US$23.8 billion) recorded in the last two days.

All major Chinese stock index edged up on Wednesday. Beijing Stock Exchange 50 Index, which includes mainly small-cap tech stocks, rose over 10 percent. The benchmark Shanghai Composite Index jumped 1.3 percent.

The southern-bound net inflows of investment, from Shanghai to Hong Kong, totaled a one-day record of HK$35.6 billion (US$4.6 billion). Hong Kong's Hang Seng index opened over 4 percent lower on Wednesday but picked up sharply near the close to end with a gain of 0.68 percent. Medical stocks rose despite a US threat to impose specific tariffs on pharmaceuticals.

Economy

Premier's roundtable

Chinese Premier Li Qiang on Wednesday held a roundtable with economists and entrepreneurs to elicit their views on the current economic situation and hear suggestions on future plans.

Economist Zhang Bin, Huawei prodigy and co-founder of humanoid startup Agibot Peng Zhihui, and Wan Min, chairman of state-owned Cosco Shipping, were among seven participants who addressed the roundtable.

Specific of the talks were not released, but a summary of the general view showed optimism and confidence.

It said participants consider China's economy generally stable since the beginning of the year, with new drivers of growth expanding rapidly. It noted external challenges but said the economy shows strong resilience, great potential and optimistic long-term development prospects.

Corporate

AI chip maker unfazed

China AI chip champion Cambricon Technologies, in a statement, said the imposition of US tariffs and other punitive measures won't substantially impact the company's operations and management.

Cambricon's access to US products and technologies was restricted in late 2022.

The firm's revenue primarily comes from domestic clients, with the proportion of revenue from overseas clients less than 1 percent in 2023 and 2024.

The company's shares on Shanghai's Nasdaq-style STAR market rose nearly 9 percent.