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Good morning, I’m back to Firstft Asia. About today’s agenda:
China reroutes exports through Southeast Asia
Tony Blair staff participated in the Gaza Riviera project
How is business change in Hong Kong changing?
We begin with new data suggesting that Chinese companies are sending increasing goods to the US through Southeast Asia to the US to avoid Donald Trump’s tariffs. Here’s what you need to know.
Data shows: The value of exports to the United States to China fell 43% year-on-year in May, according to figures released by the US Census Bureau. However, the country’s overall exports rose 4.8% as the lack of trade with the US was offset by a 15% increase in shipments to the Southeast Asian countries’ trade bloc and a 12% increase to the EU, official Chinese data showed.
Mark Williams, chief economist at Consultant Capital Economics, said the data showed a “really impressive pattern.” “We saw this in the first US-China trade war. There was a fairly immediate change. US imports from China dropped out, but they picked up from Vietnam and Mexico,” he said.
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Transshipping crackdown: Last week, Washington attacked a trade deal with Vietnam. This included 40% collection of goods crossing the country, and was a move widely thought to target China’s re-export. Many countries have yet to reach a trade agreement with Washington. Trump’s “mutual” tariff suspension ends Wednesday, with future transactions likely including additional transportation taxes.
Here is the other thing I keep tabs today:
Economic Data: Thailand is publishing June inflation rate.
BRICS Summit: A gathering of groups from developing countries continues in Rio de Janeiro, Brazil. The absence of Chinese leader Xi Jinping has raised questions at the meeting.
Trump Netanyahu Conference: Israeli leaders meet with the US president to discuss a potential ceasefire with Hamas.
Five more top stories
1. The Tony Blair Institute has participated in a project to develop the postwar Gaza project, which envisages kickstarting the enclave’s economy with the Trump Riviera and Elon Musk’s Smart Manufacturing Zone. The plan outlined in the slide deck seen by FT has reconsidered Gaza as a thriving trading hub, using a financial model led by Israeli businessmen and developed within the Boston Consulting Group.
2. China’s mining acquisitions reached its highest level in over a decade as companies compete to secure the raw materials that support the global economy. Experts said the Chinese group is “trying to complete many M&As before geopolitics becomes difficult.” Details about the China mining rush.
3. The crew of a Greek-owned cargo ship was forced to abandon a vessel in the Red Sea yesterday after alleged initial attacks on a commercial vessel by the Houtis in Yemen this year. Hours after the attack, the Israeli defense minister wrote to X that Israel had “forced” attacked targets related to Houthi, including the ports of Hodeida, Al-Salif and Ras Isa.
4. Elon Musk said he formed a new political party to fight the “one-party system” that plagues the US after he dropped out with Trump over the president’s groundbreaking domestic policy bill. The billionaires suggested that the party would first target major parliamentary races.
5. The search for 11 missing girls from Texas summer camp continued on the third day as flash flood deaths rose to nearly 70, including 21 children. Officials say the Guadalupe River, which runs through the hill country in central South Texas in 45 minutes early Friday, is ruptured by banks and destroying roads and property.
FT Magazine
Can Hong Kong recreate its role as a global financial hub? China’s territory is much to bounce back from the enormous democratic protests of 2019 and 2020. A strict new national security law imposed by Beijing. Then there was that strict Covid-19 policy. With a new post from two years in Hong Kong, FT’s Kaye Wiggins explores how he’s making business in the city.
We’re reading too. . .
The Embrace of Dragon-Bear: China-Russia Partnership aims to create a new world order. But is this bond as close as it looks?
Biohacking: FT Magazine enters a “Neurohacking” camp that promises 40 years of spiritual awareness in five days.
Vulnerable Leaders: I write that, as demonstrated by overwhelming humanity, if the people in charge are strategic about their weaknesses, they are showing overwhelming humanity.
The chart of the day
Japan is competing with China’s sector control through its most ambitious driving force in decades, energizing shipbuilding, and consolidating and a proposed $7 billion national fund.
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Take a break from the news
The world’s largest China’s first LEGOLAND officially opened in Shanghai on Saturday. Among the attractions to seduce visitors are the reconstruction of the Great Wall’s Lego and replicas of the city’s unique skyline.
