Geopolitical & Economic Concerns - The West's continued business dealings with Hong Kong and China post the alleged corruption of Hong Kong's judiciary and violation of international declarations may lead to future repercussions [1] - The Nvidia deal is characterized as a "hostage exchange" involving rare earth magnets and Nvidia's H2O chips [2] Trade Agreement Risks - US companies entering licensing agreements with Chinese rare earth magnet suppliers are required to disclose sensitive production data, potentially compromising competitive advantage [3] - The unrestricted flow of chips to China may enable the Chinese People's Liberation Army to advance AI development for military applications, posing a threat to US interests [3] - The Nvidia deal is viewed as a risky agreement with potentially detrimental long-term consequences [3]

Economic Performance - China's GDP grew by 5.2% in Q2 2025, surpassing the 5.1% forecast by economists, but down from 5.4% in Q1 [2] - The stronger-than-expected growth has alleviated immediate pressure on policymakers to implement further economic stimulus [1][3] Policy Outlook - Analysts suggest that additional stimulus measures may be delayed until September if economic momentum weakens further [3] - Previous stimulus efforts have shown partial effectiveness, with improvements in manufacturing activity and exports [4] Trade Relations - U.S. tariffs on Chinese imports were escalated to 145% in April, leading to supportive measures from Beijing [5] - A truce was reached in May, with both countries agreeing to roll back most tariffs, followed by a framework agreement in June [6] Economic Vulnerabilities - Economists have called for stronger fiscal action, recommending up to 1.5 trillion yuan in stimulus to support household spending and mitigate the impact of U.S. tariffs [7] - Despite signs of resilience, underlying vulnerabilities in the Chinese economy remain a concern [8] Investment Opportunities - Investors are encouraged to monitor China-based exchange-traded funds (ETFs) such as iShares MSCI China ETF (MCHI) and KraneShares CSI China Internet ETF (KWEB) [9]

China's export growth accelerated for the first time since March as factories rode out the tariff rollercoaster. Exports in June were up 5.8%, while imports rose 1.1%, both figures beating estimates. Let's get more with Bloomberg China economy editor Alan Wong.Allan, what does the data tell us about how China has been dealing with the latest tariff headwinds from the US. China's data is telling us that China's export machine is humming along rather nicely. Despite all the tariffs and the trade war that is s ...

4 July 2025 | 9:17AM BST European Economics Analyst EU—Trade Talks With the US: To Deal or Not To Deal (Pierdomenico/Taddei) Sven Jari Stehn +44(20)7774-8061 | jari.stehn@gs.com Goldman Sachs International Giovanni Pierdomenico +44(20)7051-6807 | giovanni.pierdomenico@gs.com Goldman Sachs International Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/re ...

[CC may contain inaccuracies] Sending letters out on Monday. Having to do with the trade deals could be 12, maybe 15. You know, secretary of commerce right here.And I guess, Howard, I would say it could be maybe as many as 15 or so. And they'll be going out on Monday and some will go out on Tuesday and Wednesday. And it'll and we've we've made deals also.So we're going to have a combination of letters. And some deals have been made. President Trump on the latest tariff negotiations as nations are now scramb ...

And so we have our uh trade agreement with the European Union and it's a fair deal for both going to produce a lot of jobs and a lot of income and we have other many many other ones coming but you see the uh the level of enthusiasm is very good but the relationship that we have is fantastic. So I just want to congratulate you but Donald thank you very much. this now implements on car tariffs and aerospace our really important agreement and so this is a very good day for both of our countries a real sign so ...

Back to the big news this morning. So President Trump has posted that the framework trade agreement with China is a done deal and that will include upfront shipments of rare earths. But exact details of the pact remain fairly sketchy.Now, the President also says he will be sending letters to other trading partners in the next couple of weeks setting unilateral tariff rates. So we're dealing with Japan, we're dealing with South Korea, we're dealing with a lot of them. We're dealing with about 15 countries.Bu ...

Ontario Premier Doug Ford gives remarks at a press conference in Queen's Park on March 10, 2025 in Toronto, Canada.Ontario Premier Doug Ford on Tuesday said he was temporarily suspending his province's planned 25% surcharge on electricity exported to the United States after U.S. Commerce Secretary Howard Lutnick agreed to renewed trade talks.Ford said that he and Lutnick "had a productive conversation about the economic relationship between the United States and Canada" earlier Tuesday."We have both agreed, ...