Core Insights - The profits of industrial enterprises above designated size in China decreased by 1.1% year-on-year from January to May 2025, with a significant drop of 9.1% in May alone, marking the largest decline since October of the previous year [2][3] Group 1: Profit Trends - The manufacturing sector's profit growth rate increased by 5.4% year-on-year from January to May, outperforming the overall profit growth rate of industrial enterprises by 6.5 percentage points [2] - State-owned enterprises experienced a profit decline of 7.4%, while private enterprises saw a profit increase of 3.4% during the same period [4] Group 2: Factors Influencing Profitability - The decline in profits is attributed to external environmental shocks, continuous decreases in the Producer Price Index (PPI), and insufficient domestic demand [3] - The average collection period for accounts receivable exceeded 70 days, indicating significant asset turnover pressure within the industrial sector [3] Group 3: Impact of Tariffs - State-owned enterprises were more adversely affected by tariffs compared to private enterprises, with state-owned profits declining by 18.1% in May [3][4] - The rising costs due to tariffs have eroded profits, as some enterprises bear the tariff costs themselves, while others face supply chain adjustment costs [6] Group 4: Sector-Specific Performance - The profits of the large equipment manufacturing sector surged by 60%-120%, driven by new production capabilities and supportive policies [2] - Downstream industries such as entertainment products, textiles, and food manufacturing faced significant profit declines of -27.0%, -18.3%, and -7.0% respectively in May [6]

Core Viewpoint - The article argues that ASEAN should adopt a strategy of "doing nothing" in response to the U.S. government's tariff war, rejecting unequal negotiations to better protect its own interests and hold the U.S. accountable for its protectionist actions [1]. Group 1: Economic Impact of U.S. Tariffs - The article highlights that U.S. President Trump’s claims of Asian economies "stealing jobs" are unfounded, as the U.S. unemployment rate is projected to average 3.8% from 2021 to 2024, one of the lowest among developed countries [3]. - The U.S. GDP is expected to reach a record $29.3 trillion in 2024, maintaining its status as the world's largest economy, while the service sector contributes 81% of GDP and employs 79% of the workforce, indicating that manufacturing's role in job creation is minimal [3]. - ASEAN has significantly contributed to U.S. prosperity, supplying critical semiconductor and machinery components essential for U.S. manufacturing competitiveness [4]. Group 2: ASEAN's Response Strategy - ASEAN should not grant tariff concessions to the U.S., reaffirming its core values of non-alignment, multilateralism, and mutual respect [5]. - ASEAN should persuade the U.S. business community that an open and stable market aligns with long-term interests, as U.S. companies have profited significantly from ASEAN's openness [5]. - The article suggests that the ultimate burden of U.S. tariffs will fall on American companies reliant on Southeast Asian supply chains, which will face increased costs, logistical delays, and diminished competitiveness [5]. - ASEAN is encouraged to enhance economic resilience, improve regional integration, diversify trade partners, and expand strategic partnerships, while also promoting diversification in currency settlement and payment systems for a more autonomous future [5].

Core Viewpoint - The article discusses the growing trade surplus of China, which reached nearly $1 trillion last year, and the implications this has for U.S.-China relations, highlighting the U.S. concerns over China's manufacturing dominance and its impact on American industries [3][12][15]. Trade Surplus - Trade surplus is defined as a situation where a country's exports exceed its imports, with China achieving a trade surplus close to $1 trillion last year [3]. - China's ability to export such a large volume of goods is attributed to its scale of manufacturing and cost control, which has made its products attractive to global buyers [3][12]. U.S. Perspective - The U.S. perceives China's reliance on manufacturing as a deviation from previous development paths, leading to concerns about global demand insufficiency rather than overcapacity [4][12]. - The decline of U.S. industrial power post-World War II has contributed to wealth disparity and dissatisfaction among American blue-collar workers, who feel marginalized by globalization [4][5][10]. Economic and Security Concerns - The U.S. is motivated by economic and security concerns, recognizing that industrial capacity is closely linked to military manufacturing capabilities [6][12]. - Events like the COVID-19 pandemic and the Russia-Ukraine conflict have heightened U.S. awareness of the risks associated with over-reliance on foreign supply chains [6][12]. Comparative Advantage Theory - The article references the comparative advantage theory, suggesting that while countries should specialize in their strengths, China's broad manufacturing capabilities have led to a convergence of advantages, creating competitive pressures on developed nations [8][9]. - The fear is that if China excels in high-end manufacturing, particularly in semiconductors, it could undermine the remaining industrial advantages of developed countries like the U.S. [9][12]. Globalization and Competition - The article posits that as comparative advantage theories fail, globalization may devolve into a zero-sum game, leading to intensified competition and trade friction [13][14]. - China's significant trade surplus is viewed as a threat to the industrial bases of developed countries, prompting fears of a strategic shift in global manufacturing [14][15]. Future Implications - As tensions rise, China is encouraged to expand its domestic market and reduce reliance on Western economies, while seeking new emerging markets [15][16]. - The article concludes that the competition between the U.S. and China is a natural response to the evolving global economic landscape, where both nations must adapt to new realities [16].

Group 1: Trade Statistics with the US - In April, Japan's exports to the US amounted to 1.7708 trillion yen, a decrease of 1.8%, marking the first decline in four months [1] - The decline in exports is attributed to the tariffs imposed by the Trump administration, including a 10% reciprocal tariff and a 25% tariff on Japanese automobiles and steel [1] - Despite the decrease in export value, the volume of automobile exports increased by 11.8%, reaching 125,817 units, continuing a four-month growth trend [1] Group 2: Import Statistics from the US - Japan's imports from the US in April totaled 990.2 billion yen, a decrease of 11.6%, influenced by high-priced and volatile aircraft imports [2] - Liquefied natural gas (LNG) imports fell by 50.7%, and coal imports decreased by 43.8% [2] - The trade surplus with the US was 780.6 billion yen, an increase of 14.3%, continuing a four-month growth streak [2] Group 3: Overall Trade Balance - Japan experienced a trade deficit of 115.8 billion yen in April, the first deficit in three months, with exports growing by 2.0% to 9.1571 trillion yen and imports decreasing by 2.2% to 9.273 trillion yen [2] - Exports of semiconductor electronic components, food, and pharmaceuticals increased, while coal and crude oil imports decreased [2] - Coal import volume decreased by 8.9%, and import value decreased by 38.6%, while crude oil import volume increased by 0.2% but value decreased by 10.1% [4]

Core Insights - Japan's exports to the US in April amounted to 1.7708 trillion yen, a decrease of 1.8%, marking the first decline in four months, potentially influenced by the tariffs initiated by the Trump administration [1] - The export value of automobiles from Japan to the US was 513 billion yen, down 4.8%, although the export volume increased by 11.8% to 125,817 units, continuing a four-month growth trend [1] - Japan's trade surplus with the US reached 780.6 billion yen, an increase of 14.3%, continuing a four-month growth streak [2] Summary by Sections Exports to the US - In April, Japan's total exports to the US were 1.7708 trillion yen, down 1.8% year-on-year, the first decline in four months [1] - The automobile export value was 513 billion yen, a decrease of 4.8%, while the export volume rose by 11.8% to 125,817 units [1] - Steel exports fell to 18 billion yen, down 29.0%, with a volume decrease of 20.3% [1] Imports from the US - Japan's imports from the US in April totaled 990.2 billion yen, a decrease of 11.6%, primarily due to reduced imports of high-priced and volatile items like aircraft [2] - Liquefied natural gas (LNG) imports dropped by 50.7%, and coal imports decreased by 43.8% [2] Overall Trade Balance - Japan recorded a trade deficit of 115.8 billion yen in April, the first deficit in three months, with exports growing by 2.0% to 9.1571 trillion yen and imports decreasing by 2.2% to 9.273 trillion yen [2] - Exports of semiconductor electronic components, food, and pharmaceuticals increased, while coal and crude oil imports decreased [2] - Coal import volume fell by 8.9%, with a value decrease of 38.6%, while crude oil import volume increased by 0.2%, but the value decreased by 10.1% [2]