Daily Buzz: 23 April 2025
Top News
End in sight for US-China trade war?
US Treasury Secretary Scott Bessent predicted the trade war with China would de-escalate "in the near future," according to news reports of comments he made at a closed-door investor summit in Washington. "No one thinks the current status quo is sustainable," he was reported as saying by people attending the session. No talks have been scheduled yet.
Bessent's remarks sent US stocks soaring on Tuesday after a big selloff on Monday, reflecting how closely investors are watching the trade dynamic between the world's two largest economies. China has remained defiant against heavy US tariffs.
In New York trading, the Dow Jones, S&P 500 and Nasdaq indexes all rose 2.5 percent or more. The US dollar rose, and gold retreated from record highs, with the price of the precious metal at US$3,341.
Trump relents on Powell removal
US President Donald Trump said he has "no intention" of firing Federal Reserve Chairman Jerome Powell before his term expires in May 2026. His recent attacks on Powell for failure to reduce interest rates and hints that he would fire him have roiled markets. His comments came after US markets closed on Tuesday. It isn't clear whether a president can take the unprecedented step of legally firing the head of the independent central bank.
Solar panel tariffs
The US Commerce Department said it plans new tariffs on imports of solar panels from Southeast Asia, including products made by Chinese companies manufacturing in the region. Cambodia is in line to receive the highest tariff of 3,521 percent. Chinese manufacturer Jinko Solar, which operates in Malaysia, is scheduled for the lowest planned tariff at about 41 percent, the report said. Trina Solar, a Chinese company making solar panels in Thailand, is on the list to receive a 375 percent tariff. The proposed levies are generally classed as "anti-dumping" duties. The US International Trade Commission will rule on implementation of the new tariffs in June.
Shenzhou-20 ready for takeoff
China will soon launch the Shenzhou-20 crewed spaceship from a site in the northwest. It will carry three astronauts to the Tiangong space station, marking the 15th crewed flight in China's space program and the 20th flight overall in the Shenzhou spacecraft series. China has made space exploration a top scientific priority.
Top Business
Shanghai Auto Show opens
The 21st Shanghai International Automobile Industry Exhibition opens today, with 1,000 exhibitors displaying the latest in vehicle design and technology to create another record in its 40-year history. One of the world's most-watched auto shows will run through May 2.
Toyota expansion in Shanghai
Japanese automaker Toyota Motor Corp on Tuesday signed an agreement with the Shanghai government to establish a 14.6-billion-yuan (US$2 billion), wholly-owned electric-vehicle and battery plant in the Jinshan District.
China's electric-car industry is growing rapidly, with sales of the vehicles soaring 47 percent year on year in the first quarter to 3.08 million units, accounting for 41 percent of total vehicle, according to the China Association of Automobile Manufacturers.
Economy
IMF downgrades growth outlook
The International Monetary Fund on Tuesday downgraded its global growth forecast for 2025 by half a point to 2.8 percent. Its latest World Economic Outlook cited a "major negative shock" from US tariffs and "intensifying downside risks." Forecasts for all major economies were shaved.
Stable forex
China will keep its foreign-exchange market stable despite trade tensions and global economic uncertainties, Li Bin, deputy bureau chief and spokesman of the State Administration of Foreign Exchange, said on Tuesday. The on-shore spot exchange rate of the yuan versus the US dollar was 7.288 on Monday, up 0.1 percent from the end of 2024. In the first three months, China had 3.79 trillion yuan in foreign-exchange settlements and 4.21 trillion yuan in foreign-exchange sales.
Corporate
Tesla sales slump
US-based electric carmaker Tesla, which has major production sites in China, reported a worse-than-expected 20 percent drop in global vehicle sales for the first quarter. Sales in China have suffered from increased competition from rival domestic automakers. Tesla stock has fallen 41 percent this year. The results were announced after US markets closed on Tuesday. Company Chief Executive Elon Musk, in an earnings call with investors, said he will be spending less time running President Trump's campaign to reduce the size of the federal government, a role that has vilified him among some car buyers.
Aircraft leasing
China Aircraft Leasing reached agreement to lease Thai Airways International nine Airbus A321neo aircraft to be delivered in phases from 2026 to 2028. The pact continues the Chinese company's global expansion. At the end of 2024, the group's fleet has been leased to 40 airlines in 21 countries.
Siemens China green project
Siemens China began its first integrated solar and battery storage project at a factory in Nanjing. The site uses a digital microgrid system combining solar panels, high-safety lithium battery storage and intelligent energy management tools. The company also signed a deal with Shanghai Xinjinqiao Energy Technology to develop a low-carbon "smart" park.
