U.S. President Donald Trump said he won’t consider pulling back the 145% trade tariffs imposed on Chinese goods to spur a trade deal. Asked by reporters on Wednesday if he would consider lowering tariffs to get China to the negotiating table, he simply said, “No.” Asked what he expected of this weekend’s U.S.-China trade talks, Trump said: “We’ll see … we were losing a trillion dollars a year, now we’re not losing anything, you know? It’s the way I look at it.” (CNBC)
China’s Foreign Ministry echoed Egypt’s negative reaction to U.S. President Donald Trump’s comment that U.S. ships should be allowed to pass through the Suez Canal without charge. An Egyptian parliamentarian called the plan “blackmail” linked to Egypt’s opposition to Trump’s plans to displace Palestinian populations. Chinese Foreign Ministry spokesperson Lin Jian said: “We firmly support the Egyptian government and people in defending sovereignty and their legitimate rights and interests, and oppose any acts or statements of bullying.” (CHINESE MINISTRY OF FOREIGN AFFAIRS)
China’s battery giant CATL is seeking a $1 billion loan to fund a large new battery manufacturing facility in Indonesia. The planned factory will likely be in Karawang, West Java. The announcement follows a joint venture with Indonesia’s state-owned Indonesia Battery Corp, which was announced in October. The plans come ahead of CATL’s rumored $5 billion listing in Hong Kong, which could be one of the largest share sales in the city in years. (BLOOMBERG)
A Philippine Senate probe has accused the Chinese embassy in Manila of funding a covert online influence campaign aimed at discrediting the country’s military and critics of Beijing ahead of midterm elections. [SOUTH CHINA MORNING POST]
The United States simulated anti-ship operations in a key Western Pacific Ocean waterway during a war game in the Philippines, amid an expanding Chinese naval presence in the region. [NEWSWEEK]
President Marcos has ordered a probe into China’s dredging activities in the wake of reports that sand gathered from various Philippine towns was used for its reclamation activities in the South China Sea. [PHILSTAR]
U.S. Treasury Secretary Scott Bessent and Jamieson Greer, the U.S. trade representative, will meet with Chinese officials for the first trade talks between the two countries since the Trump administration imposed trade tariffs. Vice-Premier He Lifeng, China’s lead for China-US economic and trade affairs, will represent Beijing during the talks that will take place in Switzerland on Saturday and Sunday. (THE NEW YORK TIMES)
China announced several new economic stimulus measures on Wednesday, shortly after the news of upcoming trade talks with the United States. The measures include a cut in interest rates and the release of RMB1 trillion ($138 billion) to support liquidity. The People’s Bank of China also announced support for top companies, the launch of inexpensive relending facilities to encourage the purchase of tech bonds, and tools to support agriculture and small businesses. (REUTERS)
China is signaling a willingness to deepen ties with the European Union ahead of a July leaders’ summit in Beijing. The two sides exchanged letters pledging to increase cooperation in the face of global challenges and marking 50 years of diplomatic ties. Foreign Ministry spokesperson Lin Jian said: “[A]s long as China and the EU choose openness and win-win results, there will be no fundamental reversal in the trend of economic globalization. China and the EU, when joining hands, will achieve mutual success and light up the world.” (SOUTH CHINA MORNING POST)
The Trump administration will cut funding to the African Development Fund (ADF), the concessional financing arm of the African Development Bank (AfDB). The 2026 budget proposal indicates a $555 million reduction in U.S. contributions to the fund, which funds development projects in Africa’s 40 lower-income countries. The move comes as many African countries have to sacrifice development budgets to repay debt, in part to private lenders listed in the United States. It will likely compound China’s importance as a funder. (BUSINESS INSIDER)
The U.S. House of Representatives introduced a raft of new anti-China bills focusing on industrial espionage, export controls, national security, and human rights issues. Among these, the Economic Espionage Prevention Act allows visa and property sanctions on foreign entities suspected of stealing trade secrets. Meanwhile, Reuters reports that a bill forcing the tracking of artificial intelligence chips like those manufactured by Nvidia after they have been sold will be introduced in the following weeks. (SOUTH CHINA MORNING POST)
Brazil is reportedly sending its largest-ever delegation of agribusiness executives to China this week. The 150-strong group will discuss expanding market access, navigating phytosanitary rules, and expanding exports. China has rapidly replaced U.S. farm exports with those from Brazil, and the South American delegation wants to expand the range of products beyond core crops like soybeans. Biotech will feature prominently, with a deal sought for cooperation on genetically modified crops. (VALOR INTERNATIONAL)
The Philippines has deployed a coastguard vessel and an aircraft to challenge and escort a Chinese research ship, it said was conducting illegal marine scientific research activities within the country’s exclusive economic zone. [SOUTH CHINA MORNING POST]
Malaysia is planning to start a direct rail cargo service between its capital, Kuala Lumpur, and Bangkok in neighboring Thailand this year […] Malaysia said last year it would consider extending a US$10 billion China-led rail project to its border with Thailand. [SOUTH CHINA MORNING POST]
Philippines-U.S. forces canceled a live-fire drill on Monday after a decommissioned Philippine Navy vessel sank in waters near Zambales province facing the South China Sea hours before it could be targeted in their annual Balikatan (shoulder-to-shoulder) exercise. [BUSINESS WORLD]
Vietnam on Saturday protested claims by China and the Philippines over a disputed reef in the South China Sea, which it considers its own territory. Manila and Beijing traded barbs last week over Sandy Cay, a group of small sandbanks in the waterway’s Spratly Islands, after a Chinese state media report suggested the area had been seized. (AGENCE FRANCE-PRESSE)
Malaysian Prime Minister Anwar Ibrahim said on Monday that he’s optimistic negotiations for a free trade agreement between ASEAN and China will be completed “in the near future.” With trade volumes hovering around a trillion dollars a year, Southeast Asia is China’s largest regional trade partner in the world. (REUTERS)
Chinese President Xi Jinping will travel to Russia this week to attend the Victory Day Parade in Moscow, according to the Kremlin. Xi is scheduled to arrive on Wednesday and will also meet with his Russian counterpart before he leaves on Saturday, May 10th. The two will sign a “number of bilateral documents,” the Kremlin added without providing details. (ASSOCIATED PRESS)
