Good morning and welcome back to Firstft Asia. On today’s agenda:
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China Reroutes exports via Southeast Asia
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Tony Blair’s staff participated in the ‘Gaza Riviera’ project
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How doing business in Hong Kong changes
We start with new data that suggests that Chinese companies send increasing amounts of goods to the US via Southeast Asia in an attempt to avoid Donald Trump’s rates. This is what to know.
What the data shows: The value of Chinese exports to the US fell by 43 percent year on year in May, according to figures published by the US Census Bureau-equal to $ 15 billion in goods. But the total export of the country increased by 4.8 percent in the same period, the official Chinese data demonstrated, because the shortage of the US shortage was compensated by an increase of 15 percent in shipping to the Association of Southast Asian countries trade block and an increase of 12 percent to the EU.
The data showed “a really striking pattern,” said Mark Williams, Chief Asia Economist at Consultancy Capital Economics. “We saw this during the first trade war in the US-China. There was a fairly immediate shift. The US input from China fell, but they took it from Vietnam and Mexico,” he said.
Trans-shipping Crackdown: Last week, Washington concluded a trade agreement with Vietnam with a levy of 40 percent on goods transferred by the country, in a movement that was generally thought to focus on Chinese re -exports to the US. Many countries have not yet reached trade agreements with Washington. The break about Trump’s “reciprocal” rates ends on Wednesday and all future deals can also include extra taxes on the transfer.
This is what I keep an eye on today:
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Economic data: Thailand publishes inflation figures for June.
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Brics Summit: The meeting of the developing countries group will take place in Rio de Janeiro, Brazil. The absence of the Chinese leader Xi Jinping has thrown a question mark about the meeting.
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Trump-Netanyahu meeting: The Israeli leader meets the American president to discuss a potentially ceasefiring with Hamas.
Five more top stories
1. The Tony Blair Institute participated in a project to develop a post -war Gaza plan That had the advantage to start the economy of the enclave with a “Trump Riviera” and an “Elon Musk Smart Manufacturing Zone”. The plan that is set out in a slide -deck, seen by the FT, was led by Israeli business people and used financial models developed in Boston Consulting Group to reconsider Gaza as a flourishing trade hub.
2. Chinese mining purchases abroad have affected their highest level in more than a decade While companies are racing to protect the raw materials that underlie the global economy. Experts said that Chinese groups “try to make many mergers and acquisitions before geopolitics becomes difficult”. Here is more about China’s Mining Rush.
3. The crew of a Greek cargo ship was forced to leave the ship in the Red Sea Yesterday after the first suspected attack by Jemen’s Houthis this year on a commercial ship. Hours after the attack, the Minister of Defense of Israel wrote on X that Israel had “strong” Houthi linked goals, including the ports of Hodeidah, Al-Salif and Ras Isa and a power plant.
4. Elon Musk said he had formed a new political party to fight against the “one-party system” affecting the US, After falling out with Trump about the historic domestic policy account of the president. The billionaire suggested that the party would initially focus on important congress races.
5. The search for 11 girls who were missing in a summer camp in Texas took place for a third day While the death toll from flash floods to nearly 70 people climbed, including 21 children. The Guadalupe River that runs through the Hill Country in the center of Zuid -Texas, rose in the early hours of Friday by eight meters in 45 minutes, according to officials, who destroy the banks and roads and real estate.
FT Magazine
Can Hong Kong resume his role as a global financial hub? The Chinese territory has a lot to bounce back from: huge pro-democracy protests in 2019 and 2020; a heavy new national security law imposed by Beijing; Then there was his strict COVID-19 policy. Fresh from a two -year placement in Hong Kong, investigates the Kaye Wiggins of the FT how doing business in the city changes.
We read too. . .
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Embrace ‘tarragon-bear’: China-Russia partnership wants to build a new world order. But is this band as close as it seems?
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Biohacking: FT Magazine goes in a ‘neurohacking’ camp that promises spiritual lighting for 40 years in five days.
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Vulnerable leaders: Access of overwhelming show humanity, writes Pilita Clark – when people who are in charge are strategic with their weaknesses.
Graph of the day
Japan assembles his most ambitious push in decades to breathe new life into his shipbuilding industry – and competes against the Dominance of China – through consolidation and a proposed $ 7 billion National Fund.
Take a break of the news
China’s first Legoland, one of the world’s largest, officially opened in Shanghai on Saturday. Among the attractions to attract visitors: a LEGO reconstruction of the big wall and the replica of the distinctive skyline of the city.
