Daily Buzz: 30 April 2025
Top News
Xi lauds AI growth
Chinese President Xi Jinping, on a visit to Shanghai, hailed "the explosive growth" of artificial intelligence technology, describing it as an "industry that belongs to young people." China has identified AI as a strategic sector in its goal of becoming a global leader in science, biomedicine and technology. During his visit, Xi toured a facility that serves as an "incubator" for AI startup projects, where 100 new ideas are currently being fostered. He also visited the headquarters of the New Development Bank, where he met with institution President Dilma Rousseff, the former leader of Brazil. The bank was established in 2014 by Brazil, Russia, India, China and South Africa, the so-called BRICS group of nations.
Liberals win in Canada
Canadian Prime Minister Mark Carney, a former central bank head in both his homeland and in the UK, steered the Liberal Party to victory in Monday's parliamentary elections, only months after polls pointed to defeat. Carney has been a staunch defender of Canada against US President Donald Trump's tariffs and threats to make the nation the 51st US state, which have unleashed a wave of Canadian nationalism. "America wants our land, our resources, our water, our country. That will never happen," Carney declared in his victory speech.
Alibaba's AI breakthrough
Alibaba, a global giant in e-commerce and technology, has unveiled what it calls the world's strongest open-source AI model, Qwen3. It is the first "hybrid reasoning" model to be developed in China, integrating both "fast" and "slow" thinking. For simple demands, it can provide answers in seconds with low computing power; for complex questions, it can conduct multistep "deep thinking." Analysts said the breakthrough is a serious rival to both Chinese and US AI models.
Top Business
Walmart resumes orders
Some manufacturers in Jiangsu and Zhejiang provinces said they have received notices from US retail giant Walmart asking them to resume shipments as soon as possible, according to South China Morning Post. The two provinces are home to many export-dependent companies. It is reported that Walmart initially said Chinese suppliers would have to bear the cost of high tariffs imposed on China. However, the shipment notices indicate the company is prepared to absorb the additional costs in face of shrinking US inventories. US e-commerce giant Amazon also plans to display price of certain products concerning details of tariff fees without shouldering the blame for the cost of Trump's trade war.
Volte-face in US auto tariffs
In another backpedaling on its contentious global tariffs, the US announced measures on Tuesday to ease the impact of its 25 percent global car import duties. It said it will provide automakers credits of up to 15 percent on the value of vehicles assembled domestically, which can be applied against the value of imported parts. Moreover, autos and parts subject to auto tariffs will no longer be subject to other Trump administration tariffs, including 25 percent on imports of steel and aluminum.
Economy
Listed companies' earnings
Bucking trade tensions, about 40 percent of 2,785 A-share listed companies in China posted earnings growth in first-quarter reports as of April 27, according to Wind data. The gains were led by sectors such as basic chemicals, power equipment and non-ferrous metals. Notably, 70 companies, dominated by banks and utilities, reported net profits exceeding 1 billion yuan (US$138 million).
Services growth
China's trade in services in the first quarter grew 8.7 from a year earlier, with the travel industry a major contributor, the Minister of Commerce announced on Tuesday. The nation has announced plans to promote the expansion of services in sectors such as telecommunications, health care and financing.
Schools as incentive for homebuying
The Nansha District in the southern city Guangzhou said children of non-local residents who purchase newly built homes in the area will be given access to school placements. This "home-for-school" policy is the first of its kind among China's major cities and comes as Nansha marks its 10th year as a free trade zone. Analysts say the policy aims to boost home sales while avoiding market speculation.
Corporate
Baosteel boosts capacity
Baoshan Iron & Steel, China's largest listed steelmaker, will expand its capacity by more than 30 million tons to over 80 million tons following a 9 billion yuan (US$1.24 billion) deal to acquire a 49 percent stake in Maanshan Iron & Steel. The move aligns with Baosteel's goal of reaching up to 100 million tons of production and signals further consolidation in the industry. Chairman Zou Jixin said the challenge is to make "the elephant dance," referring to Baosteel's push for agility amid expansion. Despite a profit decline in 2024, Baosteel remains the country's most profitable listed steelmaker.
New electric car plant
SAIC Motor signed an agreement to set up a plant for development of its new electric vehicle brand co-developed with Huawei Technology Co. The Shanghai-based carmaker will site the plant and supporting vehicle-battery facilities in the Lingang area of the city's pilot free trade zone. The plant will have annual production capacity of about 250,000 vehicles in its initial stages.
AstraZeneca fine
UK-based drug giant AstraZeneca said it may face a fine of up to US$8 million in China over suspected unpaid taxes related to the import of its breast cancer drug Enhertu, Reuters reported. The company update comes after it announced in February that it could face a fine of up to US$4.5 million over imports of cancer drugs Imfinzi and Imjudo.
