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Global oil markets are facing renewed disruption as  Saudi Arabia reduces crude shipments to key Asian buyers , highlighting the deepening impact of the ongoing Middle East conflict on energy supply chains. Supply Cuts to China and India State producer  Saudi Aramco  is expected to ship  around 40 million barrels to China in April , down from  48 million barrels in February . Shipments to  India are also set to decline , with volumes estimated at  ~23 million barrels , compared with  25–28 million barrels previously . The reductions reflect  logistical disruptions and supply constraints  caused by escalating tensions in the region. Strait of Hormuz Disruption Drives Market Shock The near closure of the  Strait of Hormuz , a critical global oil transit route, has severely restricted flows from the Persian Gulf. In response, Saudi Arabia has rerouted some exports through its  Yanbu port on the Red Sea , but capacity remains limit...

Quick Summary China kept its benchmark lending rates unchanged  for the ninth straight month 1-year LPR stays at  3.0% , 5-year LPR at  3.5% Authorities prefer  targeted tools over broad rate cuts Growth expected to slow to  4.5% in 2026 What Happened China left its benchmark  Loan Prime Rates (LPRs)  unchanged in February: 1-year LPR:  3.0% 5-year LPR:  3.5% The decision marks the  ninth consecutive month of steady rates , suggesting policymakers are  not in a hurry to roll out fresh broad-based stimulus . The rates are set by the  People's Bank of China  (PBOC) . Why No Immediate Cuts? While China hit its  ~5% growth target in 2025 , largely thanks to strong exports, several headwinds persist: Structural imbalances Industrial overcapacity Weak domestic consumption Rising geopolitical tensions A Reuters poll forecasts  growth slowing to 4.5% in 2026 . Key point:  Policymakers appear to be conserving policy ...

Chinese companies have committed roughly  US$80 billion  to overseas clean technology projects in the past year, according to a new report by Australian research group  Climate Energy Finance (CEF) . The surge reflects China’s push to find new markets as domestic clean-energy supply continues to outstrip demand. China’s expanding footprint comes despite pressure from US President Donald Trump’s tariff measures, with many countries deepening cooperation with Beijing on clean energy as supply chains shift. Since early 2023, China’s cumulative overseas direct investment in green technology has risen to  more than US$180 billion , the report said. China’s Supply Glut Drives Overseas Push China dominates the global supply chain in: solar panels batteries critical minerals and processing With overcapacity at home, Chinese manufacturers are increasingly investing abroad to create new markets. “China’s got a supply glut when it comes to green technology… so they need oversea...

Asean and China have officially signed the  Asean-China Free Trade Area 3.0 (ACFTA 3.0) , marking a major milestone in bilateral trade relations between the regional bloc and the world’s second-largest economy. The  signing ceremony  took place on the final day of the  47th Asean Summit and Related Summits , witnessed by  Prime Minister Datuk Seri Anwar Ibrahim  and  Chinese Premier Li Qiang . The agreement was signed by  Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz  and  China’s Minister of Commerce Wang Wentao . Expanding a Two-Decade Partnership The ACFTA 3.0 builds on more than  20 years of cooperation  under the Asean-China Free Trade Area framework. The original ACFTA agreement was inked in  2002  and fully implemented in  2010 , making it the  first FTA established between Asean and an external partner . Since then, the pact has been a cornerstone for trade growth, in...

Trade Momentum Strengthens Malaysia-China bilateral trade reached  US$131.84 billion (RM555.8 billion)  in the first eight months of 2025, underscoring robust momentum as both nations enter the “Golden 50 Years” of diplomatic relations. China has remained Malaysia’s largest trading partner for  16 consecutive years , accounting for  RM484.12 billion  in total trade in 2024, or 16.8% of Malaysia’s global trade. Tourism Rebounds Tourist arrivals from China surged to a historic  2.78 million visitors in the first seven months of 2025 , reflecting deepening people-to-people exchanges and recovery in travel flows. High-Level Visits Elevate Ties China’s Ambassador to Malaysia, Ouyang Yujing, highlighted that  state visits by Chinese President Xi Jinping and Premier Li Qiang , alongside Malaysian Prime Minister Anwar Ibrahim’s visits to China this year, have boosted momentum. Both nations agreed in April to  build a high-level strategic community with a ...

Key Takeaway:  Despite facing US tariffs as high as  145% , China is on track for a record  US$1.2 trillion (RM5.05 trillion) trade surplus  by aggressively redirecting exports to new markets, sparking global alarm over cheap goods and competitive threats. President  Xi Jinping’s export machine  is proving resilient, defying Washington’s steep tariffs and reshaping global trade flows. With the US market increasingly restricted, Chinese exporters have pivoted quickly, driving record shipments to  India, Africa, Southeast Asia, and even Latin America . Indian imports from China hit an  all-time high in August , while exports to Africa are heading for a yearly record. Shipments to Southeast Asia have also surpassed their pandemic-era peak. The strategy is allowing Beijing to maintain growth even as the US tries to isolate it through trade barriers. The surge has unsettled governments worldwide.  Mexico  is the only country to respond forcef...

 Key Takeaways Alibaba secures China Unicom as client  for its  T-Head AI accelerators , marking early adoption of its in-house chips. Data center deployment:  Chips will power Unicom’s new facility in Qinghai, alongside rivals MetaX and Biren. Competitive edge:  Alibaba’s chip reportedly offers  better memory specs than Huawei’s Ascend 910B , though Huawei is readying an upgraded 910C. Strategic investment:  Alibaba committing  ¥380B (US$53.5B)  over three years into AI infrastructure, aiming to reduce reliance on Nvidia. Deal Significance The deployment at China Unicom’s Sanjiangyuan data center highlights Alibaba’s progress in the domestic semiconductor race. While the scale of adoption remains unclear, state media coverage signals government support and growing recognition of Alibaba’s T-Head unit as a credible player in China’s AI ecosystem. Competitive Landscape Huawei Technologies:  Dominates with Ascend series but faces intensify...

 Key Takeaways Washington and Beijing agreed on a  framework deal  allowing TikTok to continue in the US. The arrangement includes a  divestment of TikTok US from ByteDance , though China will retain control of the core algorithm. A  planned call between US and Chinese leaders  later this week is expected to finalize the deal. Data privacy and national security remain unresolved concerns, particularly around potential  backdoor access  to US user data. The agreement is part of broader  US-China trade and tech negotiations , highlighting AI and data security as central themes. Deal Overview The US and China have established a framework that lets TikTok continue operations in the US under US-controlled ownership, separating it from Chinese parent ByteDance. Beijing has signaled it will not sell the company’s algorithm — seen as the platform’s “secret sauce.” Instead, the deal focuses on corporate restructuring rather than full technology transf...

  Key Takeaways: Trump urged EU officials to impose tariffs of up to  100% on China and India , key buyers of Russian oil. The US signaled willingness to impose  matching tariffs  if the EU complies. Move would mark a  strategic shift  for the EU, which has leaned on sanctions rather than tariffs. Trump’s Request to the EU US President Donald Trump asked European Union envoys on Tuesday to implement sweeping tariffs on  China and India  as part of a coordinated strategy to pressure Russian President Vladimir Putin. According to a US official and an EU diplomat, Trump suggested tariffs as high as  100% , citing the two nations’ critical role in sustaining Moscow’s oil-driven economy. The proposal was made during a conference call with EU sanctions envoy David O’Sullivan and other officials. A diplomat noted the US offered to mirror any European action:  “They are basically saying: We will do this but you need to do it with us.” Strategic ...

  Key Takeaways: Trump told EU officials he is prepared to impose  new tariffs on China and India , but only in coordination with European nations. Measures under discussion also include  sanctions on Russia’s shadow fleet, banks, and oil majors . The proposal comes after Moscow escalated attacks in Ukraine and missed Trump’s deadline for peace talks. Tariffs as Leverage President Donald Trump signaled a willingness to levy sweeping tariffs on China and India to force Russian President Vladimir Putin into negotiations over Ukraine. According to people familiar with the talks, Trump told EU leaders in Washington the US would mirror European tariffs if member states agreed. The approach highlights a challenge: several EU nations, notably Hungary, have previously blocked stricter sanctions on Russia’s energy sector. Any EU measures would require unanimity. Trump has already  doubled tariffs on Indian goods to 50%  in response to New Delhi’s continued purchases of R...

Key Takeaway:  Eurizon SLJ Capital CEO  Stephen Jen  expects the Chinese yuan to strengthen significantly to the  low-6 range per dollar , citing global pushback risks, capital repatriation potential, and undervalued Chinese assets. Current Performance Yuan up  2.4% vs. USD  in 2025, trading near  7.13 per dollar . However, it has  weakened against other major currencies : -9.6% vs. euro -5% vs. pound -4.6% vs. trade-weighted basket This divergence has fueled perceptions of an  “opportunistic devaluation.” Jen’s Bullish Case Target:  Yuan in the  low 6s , potentially around  6.25/USD  (~14% appreciation). A stronger renminbi could: Ease  trade tensions  by countering claims of predatory FX policy. Attract  foreign capital inflows  into undervalued Chinese markets. Encourage  repatriation of US$2.5 trillion  in overseas liquid assets held by Chinese firms. “A more reasonably priced renminbi and...

  Key Takeaways China designates  2025–2027 as a critical window  for accelerating AI adoption. Policy priorities focus on six areas:  science & technology, industry, consumption, public welfare, governance, and global cooperation . Milestone targets:  70% AI penetration by 2027 , 90% by 2030, and a fully intelligent economy by 2035. Government to deploy  policy tools, financial support, and institutional reforms  to drive progress. Resource allocation includes  computing power optimisation, shared platforms, and AI product adoption  to reduce R&D costs. Policy Direction The National Development and Reform Commission (NDRC) published new guidelines under the  “AI Plus” initiative , signalling Beijing’s push to transform the digital economy into a  smart, AI-driven economy . Director Huo Fupeng stressed that the next one to two years mark a decisive period for deployment, requiring mobilisation of resources from government, i...

President Donald Trump’s renewed tariff war may be reshaping global trade in ways that everyday investors can’t ignore. According to research by  S&P Global , the pressure is accelerating China’s pivot toward the  Global South  — a group of developing economies across  Southeast Asia, Latin America, the Middle East, and Africa . China’s Trade Shift Is Already Underway Over the past decade,  China’s exports to Global South nations have doubled , far outpacing growth to the US (+28%) and Western Europe (+58%). The momentum has only strengthened since Trump’s first term, as Chinese companies search for new markets amid a slowing domestic economy and higher US tariffs. Today, China’s trade with its 20 largest Global South partners equals about  20% of those countries’ GDP , making Beijing a central force in their economies. Sectors and Companies to Watch Chinese firms are building new  manufacturing hubs  abroad, with a focus on: Electric vehicles...

President Donald Trump has extended a key tariff deadline with China by 90 days, preventing a sharp increase in U.S. levies on Chinese imports that was set to take effect Tuesday. The extension, confirmed by the  Wall Street Journal  and CNBC, comes as both sides continue trade negotiations. Key Points: Without the extension, tariffs on goods such as  toys, footwear, and furniture  could have risen sharply. Current U.S. tariffs on Chinese goods stand at  30% , down from an earlier 145% as part of a temporary truce. China imposes  10% tariffs  on U.S. products, with exemptions for certain goods. Trump described U.S.–China relations as “very good” but stopped short of confirming a full trade deal. “We’ll see what happens,” he told reporters. He later signed an executive order to formalize the 90-day pause. Agricultural Pressure & Market Reaction: Trump has urged Beijing to increase purchases of  U.S. soybeans , calling it a way to reduce China’s...

Viral Throwback Amid Tough Economy China’s slowing job market has sparked a wave of nostalgia online, with millions of young users flocking to social media to reminisce about the country’s high-growth years of the early 2000s. The hashtag  “beauty in the time of economic upswings”  has amassed nearly 50 million views on RedNote, China’s Instagram equivalent, as users share images of vibrant fashion, music videos, and advertisements from two decades ago. A Silent Protest Against Economic Pressures Youth Struggles:  The trend coincides with the graduation of 12.2 million university students entering one of the toughest job markets in years, weighed down by US tariffs, deflation, and weak domestic consumption. Dual-Speed Economy:  While China’s GDP is expected to grow around 5% this year, analysts highlight a divide between robust exports and struggling household demand — a stark contrast to the 2001–2010 boom era. Subtle Criticism:  Analysts say the nostalgic post...

China’s factory activity unexpectedly deteriorated in July, with the official manufacturing PMI dropping to  49.3  from June’s 49.7, marking its weakest reading in three months and signaling a contraction despite the recent tariff truce with the US. The figure missed economists’ median forecast of 49.7, raising fresh concerns over the durability of the country’s economic momentum. Key Data: Manufacturing PMI:  49.3 (vs. 49.7 in June; est. 49.7) Non-Manufacturing PMI:  50.1 (vs. 50.5; est. 50.2) Construction Input Prices:  54.5 (vs. 48.3), driven by rising steel and building material costs. Market Reaction: CSI 300 Index:  Down ~1% after the release. China Government Bonds:  Futures rose as investors sought safety. Drivers Behind the Slowdown: Weak Exports:  Early signs that shipments are slowing despite front-loading ahead of tariffs. Soft Domestic Demand:  Consumer spending remains tepid amid persistent uncertainty. Seasonal & Weather Di...

As the US escalates tariffs under President Donald Trump,  China is quietly but strategically recalibrating its approach to Europe  — pivoting from legacy infrastructure takeovers to  greenfield investments  in batteries and EVs, particularly in  Hungary, Slovakia, Portugal, and Serbia . From Ports to Plants: China’s Shift Up the Value Chain Europe once saw billions flow into ports, utilities, and luxury assets like football clubs. But with that wave peaking in  2016-2018 , China has reoriented toward  higher-value sectors  such as electric vehicle (EV) batteries — and critically, toward  more politically welcoming territories . CALB’s $2.2B plant  in Sines, Portugal CATL’s battery factory  in Debrecen, Hungary BYD’s EV facility  and European HQ near Szeged, Hungary Volvo (Geely)-backed EV plant  in Košice, Slovakia Gotion-InoBat JV  in Slovakia These projects are  heavily incentivized  by local governments ...

Trump wants cuts. Markets want clarity. The Fed says: not so fast. While central banks around the globe are  slashing interest rates  in response to tariff turmoil and cooling inflation, the  Federal Reserve remains cautious  — resisting political pressure from President Trump to loosen monetary policy. Key Takeaways from Bloomberg’s Global Rate Watch : 🔹  Fed (US): ➡ Current: 4.5% | Forecast: 4.25% ➡  One rate cut expected —possibly in Q4. ➡ Trump wants action, but policymakers are wary of inflation risks from tariffs. 🔹  ECB (Europe): ➡ Forecasts two more cuts this year to 1.5%. ➡ Tariff threats on pharma exports weigh on eurozone growth. 🔹 BOJ (Japan): ➡ Could raise rates  slightly  amid inflation and wage growth, but politics may delay action. 🔹  BOE (UK): ➡ Expected to cut rates twice by year-end as job markets weaken and inflation stays sticky. 🔹  BOC (Canada): ➡ Two rate cuts likely this year due to softening growth. ...