Daily Buzz: 12 May 2025
Top News
China-US trade talks
China and the US ended weekend trade talks in Geneva, saying a joint statement will be released on Monday. No details, including any mention of tariffs at the heart of the talks, were revealed on Sunday.
Chinese Vice Premier He Lifeng told reporters that the negotiations were "candid, in-depth and constructive" and that a "consensus" had been reached. Vice Commerce Minister Li Chenggang said Monday's statement would contain "good news for the world." US Treasury Secretary Scott Bessent described the talks as "substantial progress."
S&P 500 stock future prices in New York rose 1 percent on the positive initial statements.
The meeting between the world's two largest economies was the first since the Trump administration imposed 145 percent tariffs on US imports in April and China retaliated with 125 percent tariffs on US goods. It came as the trade war is beginning to bite into supply chains, business profits, cargo shipments and prices.
India-Pakistan fragile ceasefire
A fragile ceasefire in military hostilities between India and Pakistan was tentatively holding despite both nuclear-armed neighbors claiming some violations that they blamed on each other. The worst cross-border attacks in decades were triggered by the massacre of 26 tourists in India-administered Kasmir last month.
Ukrainian conflict
Russian President Vladimir Putin on Sunday proposed direct talks with Ukraine on May 15 in Turkey after European leaders said they would impose further sanctions on Russia if it didn't agree by Monday to the unconditional 30-day ceasefire proposed by the US and earlier accepted by Ukraine.
Ukrainian President Volodymyr Zelensky responded by saying he would personally be in Istanbul on Thursday to greet Putin if Moscow agreed to the ceasefire, though it wasn't clear that the Russian president meant he would attend any talks in person.
US President Donald Trump, whose favor both sides are currying, wrote online: "President Putin doesn't want to have a ceasefire with Ukraine, but rather wants to meet … to negotiate a possible end to the bloodbath. Ukraine should agree to this immediately. At least they will be able to determine whether or not a deal is possible."
Top Business
CATL share sale
Chinese battery maker CATL, the world's biggest maker of lithium-ion batteries for electric vehicles, launches a US$4 billion initial public offering in Hong Kong on Monday, with shares priced at a 5 percent discount to its mainland share price, Reuters reported. The shares, listed on the Shenzhen exchange, closed at 248.27 yuan (US$34.31) on Friday. The Hong Kong shares are expected to begin trading on May 20.
The company, founded in 2011 and headquartered in Fujian Province, has secured major institutional investors in the share sale, including China's Sinopec and the Kuwait Investment Authority, Reuters said.
April car sales rise
China's car sales in April rose 14.5 percent from a year earlier to 1.78 units. Electric and hybrid cars, which comprise half of all sales, increased 34 percent. Autos are included in a government economic stimulus program that provides subsidies for consumers trading in older-model goods for new ones.
Economy
China-Latin America forum
Chinese President Xi Jinping will deliver a keynote speech at a Beijing meeting of a trade group China founded with Latin American and Caribbean countries. China, the second-largest trading partner of Latin America, is seeking to strengthen trade ties amid a tariff war with the US. The China-Celac forum was founded in 2014 during Xi's state visit to Brazil.
Smaller China banks cut rates
Several mid-size and small banks have cut deposit interest rates, following a new round of stimulus policies recently announced by the central government. The annual interest rate of many banks is now below 2 percent. Last week, People's Bank of China Governor Pan Gongsheng announced cuts to key rates and said he expects the prime loan prime rate to drop 0.1 percentage point as a result.
Corporate
Apple slashes China iPhone prices
Apple advised China distributors over the weekend that it is cutting prices on several iPhone models, Chinese media reported. The price for iPhone 16 Pro Max was lowered by US$160, and that for the 128 GB iPhone 16 Pro dropped US$176. The price reductions come ahead of one of China's biggest shopping events that starts on May 13. Apple is in fierce competition with Chinese mobile brands.
Xiaomi chief breaks silence
Xiaomi founder Lei Jun publicly addressed the recent SU7 accident controversy for the first time, thanking the public for its support during what he called one of the company's "toughest periods." His online post broke the company's silence since a high-speed crash involving Xiaomi's SU7 electric vehicle triggered public backlash and stock volatility. Lei acknowledged emotional strains, canceled meetings and scaled-back activities during the period. Meanwhile, Xiaomi has rebranded its "autonomous driving" system as "driver assistance," addressing concerns that some domestic automakers were giving motorists a false sense of security by overhyping self-driving technology.
OpenAI-Microsoft talks
US-based OpenAI, a major competitor with Chinese artificial intelligence technology, is renegotiating its multibillion-dollar deal with Microsoft to pave the way for its ChatGPT AI language model to go public in the future, the Financial Times reported. Microsoft has a US$13 billion investment in OpenAI, which is trying to restructure itself into a for-profit company from a nonprofit.
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