Daily Buzz 15 April 2025

Top News

Japan won't rush tariff talks

Japan will not rush a trade deal with the US for the sake of speed, Prime Minister Shigeru Ishiba said on Monday, emphasizing the importance of bilateral cooperation over quick concessions. He ruled out retaliatory tariffs against the US and stressed diplomacy ahead of upcoming negotiations. Ryosei Akazawa, the nation's economic revitalization minister who will lead talks in Washington this week, said currency matters would not be discussed, leaving them to financial officials. The stance signals Japan's cautious approach to maintaining stability in its key alliance while seeking balanced trade terms. The talks could shape the future of auto and steel trade flows.

US tariff tinkering

President Donald Trump said on Monday that he is looking to "help some of the car companies" now under 25 percent import tariffs, saying they need "a little bit of time" to move their production to the US." He offered no details and no further clarity about a possible reinstatement of electronics tariffs or the imposition of specific tariffs on imports of pharmaceuticals.

Top Business

Insurers' stock funds

Chinese insurance funds are investing in the stock market at an accelerated pace. In recent years, the nation's financial regulators have eased restrictions on insurers adding shares to their portfolios. A pilot program started in 2023 allows them to set up private stock funds as long-term investments. Eight insurance firms were initially approved for the project, with 162 billion yuan (US$22 billion) at stake. A second batch of insurance funds for this pilot program can be expected soon.

Stimulating consumer spending

China continues to roll out more initiatives to boost domestic consumer spending as part of efforts to parry the effects of higher US tariffs. A nationwide "Shopping in China" campaign features at the 5th China International Consumer Products Expo in the southern province of Hainan.

Various provincial and municipal governments have announced new policies to encourage consumers to spend more. Hainan, for one, has unveiled a three-year plan to facilitate more than 10 billion yuan to support consumer spending, including subsidies for certain loans to consumers and the services industry. The southern city of Guangzhou has issued guidelines on 25 measures to encourage spending, adding 17 more categories of household appliances to its consumer trade-in program.

Economy

China's exports surge

China's exports in March jumped 12.4 percent from a year earlier, as companies rushed to beat new waves of US tariffs imposed by President Donald Trump. Imports in the month fell 4.3 percent. A Chinese customs official said the nation's exports remain resilient, with domestic demand a key stabilizer. "The sky won't fall," the spokesperson said of current trade tensions, noting that China is also diversifying its overseas markets amid the US tariff war.

The latest trade data shows shifting export patterns. Shipments of low-value items like shoes and clothing declined, while shipments of computer chips, appliances and vehicles surged. Electronics and other high-tech goods led China's exports in the first quarter.

Corporate

BASF expands in Shanghai

German-based chemical company BASF's Cellasto announced an investment of about 500 million yuan (US$68.4 million) to expand production in Shanghai. Cellasto is the trade name for advanced plastics technology used in auto parts, elevators, home appliances, power tools and other products. The company said the factory expansion aims to take advantage of China's rapid development in electric vehicles. Total production capacity is expected to increase by 70 percent by 2027.

GAC unveils car chips

Chinese automaker Guangzhou Automobile Group (GAC) introduced 12 new automotive-grade semiconductor chips on April 12, marking another step forward in China's push for technology self-reliance. Co-developed with other domestic firms, the chips support smart-vehicle functions, including power management, braking and safety. They include the C01, China's first 16-core central processing chip, and the G-T01, the nation's first gigabyte "time-sensitive networking" switch chip.