China says it can do without US farm and energy imports

Good morning and welcome to FirstFT Asia. In immediately’s e-newsletter:

• China seeks to reassure the general public in regards to the economic system

• Why Trump can’t construct iPhones within the US

• An op-ed on the Indus Waters Treaty and Indian safety

We begin in Beijing, the place China’s high financial officers yesterday used a press convention to reassure the general public in regards to the state of the economic system amid a commerce battle with the US. Right here’s extra on what they mentioned.

Projecting confidence: Zhao Chenxin, vice chair of the Nationwide Growth and Reform Fee, China’s state planner, mentioned the nation could do without American farm and energy imports. US agricultural imports had been “primarily for feed grains, which had been extremely substitutable”, Zhao mentioned, and famous there could be restricted influence on China’s vitality provides if firms stopped importing American oil, pure fuel and coal.

With US-China bilateral tariffs at greater than 100 per cent, commerce between the 2 financial superpowers has begun to fall, inflicting Chinese language factories to start furloughing staff. However Zhao maintained that Beijing was “totally assured” of hitting the nation’s 5 per cent progress goal for the yr, at the same time as he admitted “exterior shocks had been growing”.

Commerce battle influence: The lack of the Chinese language market could be a considerable hit for US farmers, who shipped roughly $33bn of agricultural items to the nation in 2023. The US additionally despatched about $15bn of oil, fuel and coal to China. There’s rising want within the Trump administration for talks with Beijing, however China has proven little urge for food for negotiations and repeatedly blasted Washington’s claims of ongoing discussions as false. Beijing final week indicated that the US ought to cancel its tariffs as a place to begin for commerce talks. Read the full story.

• China stockpiles oil: Chinese language oil merchants are setting apart issues over the long-term financial harm of a US commerce battle as they search to profit from one of the short-term consequences: decrease crude costs.

• Chinese language clear tech exports surge: China has rapidly scaled up sales of photo voltaic panels, batteries and different inexperienced vitality applied sciences to rising markets nicely forward of the US tariff struggle, the most recent information reveals.

Right here’s what else we’re preserving tabs on immediately:

• Japan-Philippines relations: Japanese Prime Minister Shigeru Ishiba begins a go to to Manila, the place he’ll meet his Philippine counterpart Ferdinand Marcos Jr.

• Canadian election outcomes: The primary polls shut within the coming hours. The vote, which has been overshadowed by Trump’s attacks on the country’s sovereignty, has pitted Prime Minister Mark Carney towards Conservative get together chief Pierre Poilievre.

• Earnings season: HSBC, China Development Financial institution and the Industrial & Business Financial institution of China report earnings.

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5 extra high tales

1. Shares in a swath of firms surged in Tokyo yesterday after a $42bn plan to take automotive components maker Toyota Industries non-public triggered hopes of a wider overhaul of Japan’s company panorama. Buyers are placing bets on subsidiaries and affiliates that they suppose may also come beneath strain to vary their possession relationship.

2. Pirelli’s board has voted to strip Chinese language conglomerate Sinochem, its single largest shareholder, of management over the Italian tyre firm amid clashes over its governance. The Italian and Chinese language board members have been at odds for a while, and the tensions had been additional heightened by Trump’s commerce battle with China and its implications for Pirelli’s American enlargement. Here are more details.

3. European and Ukrainian officers concern Trump is getting ready to strolling away from peace negotiations with Kyiv and Moscow, doubtlessly utilizing minor progress in talks as an “excuse” to say his job is completed, in response to folks briefed on the discussions. Officers are convinced Trump is ready to seize any kind of breakthrough this week, which marks his first 100 days in workplace — even when it falls wanting a long-term resolution.

4. A thriller energy outage hit Spain and Portugal yesterday, paralysing transport networks and disrupting cellular communications. The Spanish authorities declared a state of emergency as massive areas confronted an evening with out electrical energy. Here’s more on the havoc caused by the massive outage.

5. The performing chief govt of Saudi Arabia’s Neom has in latest weeks launched a “complete assessment” of the scope and precedence of initiatives inside Crown Prince Mohammed bin Salman’s flagship scheme, two folks acquainted with the matter mentioned. Aiman al-Mudaifer was appointed final yr to steer the $500bn mega mission following increasing scrutiny of the futuristic plan.

Visible story

The Trump administration desires Apple to fabricate its iPhones within the US as a substitute of China, the place most of them are presently made. However our newest visible story reveals how the parts that energy it make this highly impractical.

We’re additionally studying . . . 

• Indus Waters Treaty: India’s resolution to undermine the water-sharing settlement with Pakistan will imperil somewhat than promote New Delhi’s pursuit of lasting safety, writes Sunil Amrith.

• Battery battle: A new front has opened within the battle between Chinese language and South Korean firms which have dominated cell manufacturing for electrical autos.

• Gen Z within the office: Information reveals youthful staff — greater than child boomers — crave the connection and routine of in-person work.

Chart of the day

The variety of US college students trying to research at UK universities has risen sharply since Trump launched his assault on a few of America’s high larger schooling establishments, information reveals.

Take a break from the information

Are you able to roti? Recipes for the buttery Malaysian flatbread are exhausting to search out, however a grasp roti maker is publishing his recipe for the first time with a step-by-step information in his new cookbook.