Daily Buzz: 1 May 2025

Top News

China closes in on US in AI

The Hoover Institution, a conservative US think tank, issued a report saying China's AI development may threaten US technology dominance, just days after Chinese President Xi Jinping praised the nation's progress in artificial intelligence. The report cited China's deep pool of AI talent and said America's talent advantage is "eroding."

Separately, Jensen Huang, chief executive of US-based chipmaker Nvidia, told a Washington tech conference that China is rapidly closing the AI gap with the US. "China's is right behind us," Huang said. "We are very close."

On Wednesday, China announced a new nationwide campaign to strengthen the governance and regulation of AI, including labeling on AI content and a crackdown on the use of AI to spread rumors, inaccurate information and inappropriate content.

China astronauts return after six months in space

China's Shenzhou-19 mission carrying astronauts Cai Xuzhe, Song Lingdong and Wang Haoze returned to Earth on Wednesday, ending their successful six-month stay aboard the Tiangong space station. During their mission, the crew conducted 86 scientific experiments that will contribute to China's long-term space plans, including a potential moon base with international partners in the 2030s.

US-Ukraine minerals deal

The White House and Ukraine signed an agreement that will give the access to Kyiv's rare earth minerals deposits in exchange for establishing an investment fund in Ukraine. The agreement comes after intense negotiations and sometimes bitter relations between both countries.

Top Business

LA port imports plunge

The Port of Los Angeles, a major entry point for Chinese imports to the US, said cargo throughput at its facilities will drop 30 percent from a year earlier as 145 percent US tariffs on Chinese goods prompt American retailers to cancel or delay orders. Port Director Gene Seroka cited the high US reliance on China imports, which account for nearly half of incoming cargo.

UPS to cut 20,000 jobs

United Parcel Service, a US-based global delivery and logistics company, said it will eliminate 20,000 jobs and shutter 73 offices by June to cut costs amid declining shipping volumes and tariff-driven trade uncertainty. The move follows 12,000 layoffs last year. The company's first-quarter revenue slipped to US$21.5 billion. UPS also said it plans to slash Amazon parcel deliveries by over 50 percent by mid-2026, citing unprofitability.

Economy

US economy turns negative

The US economy in the first quarter shrank for the first time in three years, fueling fears of a recession. The key measure of gross domestic product (GDP) contracted 0.3 percent, turning from 2.4 growth in the last quarter of 2024. A recession is technically defined as two consecutive quarters of negative growth. President Donald Trump blamed the poor data on economic overhang from the Biden administration. Democrats in Congress called it a verdict on Trump's economic policies. The drop in GDP came as an index tracking US consumer sentiment fell 32 percent in April to its lowest level since 1990.

At a rally a day earlier, marking his first 100 days in office, Trump claimed he is building "the greatest economy in US history."

China factory growth slows

China's manufacturing Purchasing Managers' Index (PMI) fell to 49.0 in April from 50.5 in March, signaling a contraction as industrial activity. The non-manufacturing PMI slipped to 50.4, showing continued but slower growth in services. Sectors such as air transport, telecommunications, Internet software and insurance maintained strong activity above 55, while water transport and capital market services fell below the expansion threshold. The softening factory data highlight pressure on China's economy as global demand falters amid persistent global trade tensions.

Amazon shelves plans to highlight tariff costs

Tech and online retail giant Amazon said it abandoned a plan to display US tariff costs on product listings after the White House called the idea hostile. Shortly after President Donald Trump phoned Amazon founder Jeff Bezos to voice his displeasure, Amazon said it had only considered the plan before dropping it.

Corporate

Xiaomi unveils new AI model

Chinese smartphone and electric vehicle manufacturer Xiaomi unveiled a new reasoning artificial intelligence model called MiMo. The open-source model features 7 billion parameters and has reportedly outperformed OpenAI's o1-mini. Xiaomi joins other Chinese tech giants like Alibaba and Baidu in releasing or upgrading in-house AI models. DeepSeek, a prominent AI model in China, is also expected to launch its next-generation version soon.

China Railway reports revenue decline in Q1

China Railway Group, the state-run rail service operator, reported a decrease in both revenue and net profit for the first quarter. The company's revenue fell by 6.21 percent to 248.56 billion yuan (US$34.05 billion), while net profit declined by 19.5 percent to 6.03 billion yuan. The company attributed the downturn in financial performance to several factors, including a reduction in the value of domestic contracts.

Hollywood appeal in China tested

Chinese enthusiasm for Hollywood movies has been on the wane. A new US superhero film called "Thunderbolts," produced by Marvel studios and distributed by Disney, opened in mainland theaters on Wednesday. It is being viewed as a litmus test on the depth of fan erosion. The movie was approved for release in China before Washington slapped punitive tariffs on Chinese imports and Beijing responded in part by curbing US film releases. Hollywood movies released in China earlier in the year fell far short of the box office receipts of the Chinese domestic production of "Ne Zha," which grossed more than 7 billion yuan (US$962.7 million) in its home market.