
CNA938 Rewind - US-China trade talks in London
CNA938 Rewind
The U.S and China are set to resume trade talks in London. U.S Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will meet with Chinese Vice Premier He Lifeng. It's the second round of such negotiations between the world's two biggest economies. Andrea Heng and Hairianto Diman speak with Chris Humphrey, Executive Director, EU-ASEAN Business Council, on the issues coming out from the meeting.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNA
an hour ago
- CNA
How US-China tensions are reshaping Hong Kong's future as a global hub
HONG KONG: Since China imposed a national security law on Hong Kong in 2020, it has steadily increased its control over the city. Beijing has also escalated efforts to strengthen economic and social links between the Chinese special administrative region and the mainland. But with intensifying geopolitical tensions between the United States and China, Hong Kong's proximity to mainland China – which has long been one of its greatest economic assets – is becoming a double-edged sword. DROP IN NUMBER OF REGIONAL HEADQUARTERS One company that has capitalised on this geographical proximity is Micro-Pak, a Hong Kong-based supplier of anti-mold products for the garment and footwear industries. From its global head office in Hong Kong, the company manages product development and coordination with its manufacturing bases in China. Today, it sells 3.5 billion products a year with an annual turnover of US$100 million. 'China can't be beat. That's where you need to be. There's an endless supply of everything in China,' said Micro-Pak's managing director Martin Berman. 'Here, if we have to see a customer urgently – many of our customers, it's just a couple of hours away. Our distant customers may be five hours away in a high-speed train, so if we have to see them today or the latest tomorrow, it's a pretty simple thing.' But there has been growing competition from mainland cities, while Hong Kong's status as a global trade and finance hub has also come under scrutiny amid the US-China rivalry. Official data showed that the number of regional headquarters of multinational companies based in Hong Kong dropped by 13 per cent between 2019 and 2023. Employment by these firms fell even more sharply – down 32 per cent to 132,000 staff by the end of 2023. Professor Heiwai Tang, associate dean of the University of Hong Kong Business School, said he is not so worried about uncertainties or risks, but more about awareness within the city on how it should move on and understanding why it lost business to other places. 'Once companies (have) left, you have to do a lot more to get them back. COVID has led to some foreign companies, especially American firms, to think … this is an opportunity to consider other places in Asia, such as Singapore or Tokyo or some other places in Asia,' he added. He said Hong Kong needs to 'rebrand itself' and 'try to project a better image to foreigners', due to some post-COVID narratives that it is 'just another Chinese city'. 'I'm also concerned about how foreigners see Hong Kong, which may not be neutral, which may not be balanced. And this is up to us to tell – a more neutral and more fact-based story about Hong Kong,' he added. GETTING BUSINESSES BACK The Hong Kong government has stepped up efforts to win back businesses in recent years, particularly from the Middle East and Southeast Asia. The city is promoting itself as a gateway to China's vast consumer market, banking on its longstanding advantages. These efforts appear to be bearing fruit. In 2024, nearly 10,000 companies with overseas parent firms established a presence in Hong Kong - a 10 per cent increase from the previous year. A Hong Kong government survey last year found that foreign companies that chose to base their regional offices in the city cited reasons such as a simple tax system, low tax rate and its free port status. The city believes that despite the geopolitical headwinds, businesses will be able to see the benefits of how global and China advantages can all be found in a single economy in Hong Kong. This is a point that Micro-Pak's Berman agrees with, having operated in Hong Kong for almost 30 years. As an American, he said he believes the Trump administration 'is making it difficult to do business no matter where you are'. Although the city is increasingly being subjected to the same tariffs affecting China, Berman noted: 'If you've decided that this is the part of the world you're dealing in, honestly, I don't see any risk factors beyond what you would see in any (other) place.' But economists warned that as tensions continue to simmer between China and the US, the most viable path forward for Hong Kong may be doubling down on its China advantage – even if it comes at the cost of diluting its status as a global hub. Gary Ng, senior economist at investment banking firm Natixis, said Hong Kong has been one of the biggest winners from the trend of globalisation over the past two to three decades, especially when geopolitical tensions were less. 'But what we see over the past years is that companies start to think and manage the risk between the Chinese market versus the rest of the world. So I think this change is really a very big challenge for Hong Kong,' Ng noted. 'If the world is still interested in the Chinese market, then Hong Kong can still be a greater China headquarters in that essence. So I think it really depends on which sector it is. 'But in general, definitely the attractiveness may be lower than before and the challenges will be more,' he added.


CNA
an hour ago
- CNA
US State Department resumes processing Harvard student visas after judge's ruling
WASHINGTON: The United States State Department directed all US missions abroad and consular sections to resume processing Harvard University student and exchange visitor visas after a federal judge in Boston last week temporarily blocked President Donald Trump's latest ban on foreign students at the Ivy League institution. In a diplomatic cable sent last Friday (Jun 6) and signed by US Secretary of State Marco Rubio, the State Department cited parts of the judge's decision, saying the fresh directive was "in accordance with" the temporary restraining order. Under that order granted to Harvard late last Thursday, US District Judge Allison Burroughs blocked Trump's proclamation from taking effect pending further litigation of the matter. Trump had cited national security concerns as justification for barring international students from entering the United States to pursue studies at Harvard. The Trump administration has launched a multi-pronged attack on the nation's oldest and wealthiest university, freezing billions of dollars in grants and other funding and proposing to end its tax-exempt status, prompting a series of legal challenges. Harvard argues that the administration is retaliating against it for refusing to accede to demands to control the school's governance, curriculum and the ideology of its faculty and students. The State Department did not immediately respond to a request for comment. In the cable, the State Department added that all other guidance regarding student visas remained in effect, including enhanced social media vetting and the requirement to review the applicants' online presence.
Business Times
2 hours ago
- Business Times
China, South Korea must safeguard free trade, Xi tells Lee
[BEIJING] Chinese leader Xi Jinping urged South Korea's new President Lee Jae Myung on Tuesday to work with Beijing to uphold free trade and defend 'multilateralism', state media said. In a phone call with Lee, Xi urged Beijing and Seoul to 'inject more certainty into regional and international situations', Xinhua said, as well as to 'promote strategic cooperative partnership to higher level'. 'A healthy, stable, and continuously deepening China-South Korea relationship aligns with the trend of the times,' Xi said. 'Close bilateral cooperation and multilateral coordination should be maintained to jointly uphold multilateralism and free trade, ensuring the stability and smooth functioning of global and regional industrial and supply chains,' the Chinese leader added. South Korea's new centre-left leader was elected in a landslide last week after winning a snap election triggered by his predecessor's disastrous martial law declaration. Seoul has long trod a fine line between top trading partner China and defence guarantor the United States. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Relations suffered under Lee's predecessor Yoon Suk Yeol, who cleaved close to the United States and sought to improve ties with former colonial master Japan. But both countries' export-driven economies have now found themselves in the crosshairs of US President Donald Trump's tariff blitz. And Lee hinted on the campaign trail that he would seek to improve ties with Beijing. He has also raised alarm by saying that a future conflict between China and Taiwan would not be South Korea's concern. AFP