Daily Buzz 18 April 2025

Top News

Xi ending regional tour

Chinese President Xi Jinping arrived in Cambodia on the last leg of a Southeast Asian tour aimed at strengthening ties with three countries hurt by high US trade tariffs.

Phnom Penh officials said the two countries signed more than 30 documents covering investment, trade and finance, but no details were given.

Xi praised bilateral ties and said trade wars undermine the multilateral trading system and disrupt the global economic order.

Earlier this week, he visited Vietnam and Malaysia, carrying the same message of banding together against unfair US tariffs and bully tactics. The US levied 49 percent duties on Cambodian, 46 percent tariffs on Vietnam, and 24 percent on Malaysia.

Tariff talks in Washington

US President Donald Trump, in a surprise appearance on Thursday at trade negotiations with Japanese officials in Washington, declaring "major progress" had been achieved.

However, Japanese Prime Minister Shigeru Ishiba said during an interview in Tokyo the same day that significant differences still exist between the two sides. He earlier said Japan won't be rushed into making big concessions.

Attention has been focused on the talks because they are the first face-to-face trade negotiations since Trump announced sweeping new import tariffs on global trading partners. Duties on cars have hit Japan particularly hard.

South Korea's finance minister has been invited to Washington next week for talks.

Meanwhile, Italian Prime Minister Giorgia Meloni arrived at the White House to discuss the 20 percent tariff, now temporarily suspended, imposed on imports from EU countries. Trump said there is a "100 percent" chance of a trade deal with the EU.

Trump-Fed showdown

President Donald Trump criticized Federal Reserve Chairman Jerome Powell for not cutting interest rates and said he should be fired.

"If I want him out, he'll be out of there real fast, believe me," Trump said. "I'm not happy with him."

The comments came a day after Powell, in unusually blunt language, said Trump's tariffs would result in higher inflation and possibly lower economic growth. His warning send US stock markets lower. Powell's current term as head of the independent central bank ends in May 2026.

Top Business

Nvidia CEO in China

Nvidia Chief Executive Jensen Huang arrived in Beijing on Thursday, days after the United States curbed sales of its H20 artificial intelligence chips to China. He told Chinese officials that China is a "very important market" and hoped that would continue," state-run CCTV reported.

Nvidia this week said new export controls on a chip designed specifically for China will result in a US$5.5 billion charge in upcoming earnings.

Nvidia earlier announced a US$500 billion investment in the US to make AI infrastructure there for the first time. Its stock price in the US fell 3 percent on Thursday, following a 7 percent drop a day earlier.

OpenAI's new models

OpenAI has launched its o3 and o4-mini AI models, setting a new standard in advanced reasoning and multimodal functionality.

The models are designed for use in everything from coding to business tasks, combining deep analytical capability with faster, more conversational performance. The o3 model targets high-complexity work, while o4-mini offers a more efficient, cost-effective alternative.

Economy

EU rate cut

The European Central Bank cut interest rates for the seventh time in a year on Thursday, looking to shore up a struggling EU economy facing further pressure from President Trump's trade tariffs.

The central bank took borrowing costs to their lowest level since late 2022.

"The euro area economy has been building up some resilience against global shocks, but the outlook for growth has deteriorated owing to rising trade tensions," the bank said in a statement. "Increased uncertainty is likely to reduce confidence among households and firms."

Shanghai support for private firms

Shanghai has released 26 new measures to support development of the private sector.

The policies aim to improve the business environment, expand financial support, protect legal rights and promote innovation.

Corporate

Tencent bets on robotics

Technology giant Tencent raised its stake in Shanghai-based robotics startup Agibot to 2.7 percent from 2.06 percent, deepening its push into AI-powered hardware.

The move follows Tencent's participation in a March funding round that included Lanchi Ventures and other investors. Agibot, known for its humanoid robots, was co-founded by ex-Huawei engineer Peng Zhihui and academic Yan Weixin.

Tencent's has announced it will add 28,000 internship positions over three years, with 60 percent targeting tech talent.

Xiaomi's 'Tesla rival' remains under wraps

Xiaomi's new YU7 sport utility vehicle, due to be launched mid-year, will not feature in the Shanghai Auto Show that runs from April 23 to May 3, despite widespread interest in the company's first SUV. It's being touted as a rival to Tesla's Model Y, with an expected price of about 250,000 yuan (US$34,500).

Xiaomi Vice President Li Xiaoshuang said the company will be exhibiting only its SU7 and SU7 Ultra vehicles at the show. In a response to online inquiries about the YU7, he said, "Don't be anxious. When it arrives, it will be in its best state."