China, Indonesia sovereign wealth funds boost investment ties
China and Indonesia agreed to step up ties between their economies during Premier Li Qiang's visit to Jakarta, including one on investment involving their sovereign wealth funds.
Both their central banks signed a memorandum of understanding (MOU) on a framework for bilateral transactions in local currencies during a ceremony witnessed by Li and President Prabowo Subianto on Sunday (May 25). The two countries will boost cooperation on tourism and agricultural exports, while wealth funds China Investment Corporation and Danantara Indonesia entered an investment agreement. No details were provided.
Li's visit to Jakarta comes as China seeks to strengthen relations with South-east Asia amid intensifying trade tensions with Washington. It follows an inaugural 2+2 dialogue last month between Chinese and Indonesian foreign and defence ministers, talks that were widely seen as part of Beijing's strategy to court the wider regional bloc. Li is headed to a South-east Asian leaders summit in Malaysia this week.
Trade and investment from Chinese companies and other multinationals into Asean have soared in recent years as US tariffs on China drove a relocation in manufacturing.
Chinese and Indonesian officials also signed MOUs on economic, industry and supply chain development policies and agreed to further work on health and media sectors.
Prabowo has visited China twice since winning the presidency – in April and November last year – with one of those trips resulting in more than US$10 billion in business deals. China is Indonesia's largest trading partner and a key investor in the country's commodity and infrastructure sectors, including the Jakarta-Bandung high-speed rail and nickel processing. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
40 minutes ago
- Business Times
US-China trade talks in London hang over markets
[LONDON] US-China trade talks in London held markets' attention on Monday (Jun 9), with Asian stocks rising, Wall Street mixed and Europe dipping. The London negotiations, following on from a first round in Geneva last month, aim to quell renewed tariff tensions between Washington and Beijing. New York's Dow and S&P 500 indices were lower, while the tech-heavy Nasdaq rose slightly in early trading. Asian shares closed up on hopes of a deal, and catching up with Wall Street from Friday, when US jobs data suggested the American economy was doing well, for now. The US dollar, however, was largely unmoved, with persistent fears of higher US inflation in the pipeline from Trump's generalised tariffs weighing on it. London, Paris and Frankfurt indices were all lower. 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 While the US economy was showing resilience, official data on Monday showed China's exports to the US last month grew at a slower pace than expected, even as they picked up to the EU and Asia. The US-China talks took place following a call between US President Donald Trump and Chinese President Xi Jinping last Thursday. They sought a de-escalation after each had accused the other of violating terms of a tariffs reprieve struck in Geneva in mid-May. The US side in London on Monday was being led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, while Vice Premier He Lifeng headed the Chinese team. Their meeting was helped by news that Beijing on Saturday approved some applications for rare-earth exports, while US aviation giant Boeing is to start sending commercial jets to China for the first time since April. Easing China's export controls on rare-earths was key for Washington, 'while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers,' said Kathleen Brooks, research director at XTB. 'The outcome of these discussions will be crucial for market sentiment,' she said. The US dollar's weakness came as economists warned that Trump's tariffs on most of the world could reignite inflation, and as the US Federal Reserve weighs whether to lower interest rates. 'The May minutes and recent comments by several (policy board) members... suggest the Fed is highly attentive to the risk that tariffs will lead to a persistent inflation shock,' wrote analysts at Bank of America. In corporate news, entertainment giant Warner Bros Discovery announced plans to split into two publicly traded companies, sending its share price higher by more than 9 per cent. One would be a Streaming and Studios company covering film and TV production and catalogues, and the other a Global Network company with television brands including CNN and Discovery, and free-to-air channels in Europe. US semiconductor maker Qualcomm also announced it was buying a UK firm, Alphawave, for US$2.4 billion as demand for database infrastructure heated up from demand in the AI sector. Alphawave shares in London jumped more than 22 per cent on the news. Qualcomm's shares rose three per cent in New York. AFP
Straits Times
an hour ago
- Straits Times
China's WeRide, M'sia's Causeway Link among firms bidding to run driverless public buses in S'pore
LTA's plan is for the autonomous public buses to operate alongside existing manned buses for an initial three-year period. PHOTO: ST FILE SINGAPORE - Chinese self-driving technology start-up WeRide and a consortium led by Malaysian bus operator Handal Indah, also known as Causeway Link, are among four companies that have submitted bids to participate in a trial of autonomous public bus services here. The Land Transport Authority (LTA) called a tender in January seeking proposals for the trial, which is slated to start from mid-2026 on two public bus routes – one in Marina Bay and Shenton Way, and the other in one-north in Buona Vista. The tender, which closed on June 9 and is expected to be awarded by the end of 2025, drew four submissions in total. Apart from WeRide and the Handal Indah consortium, the other two tenderers are vehicle distributor Cycle & Carriage Automotive and another consortium led by MKX Technologies. According to business records, MKX Technologies was incorporated in Singapore in April and has two shareholders. The majority owner is X Star Technology, a Singapore subsidiary of Chinese online vehicle financing company Yixin Group, and the minority owner is MK.X, a Japanese electric car-sharing firm. Government procurement website GeBiz did not state the other companies that make up the Handal Indah and MKX Technologies consortiums. The Straits Times has contacted WeRide, Handal Indah, Cycle & Carriage and X Star Technology for comment. LTA previously said that it will start the trial by buying six autonomous buses with at least 16 seats, and deploying them on bus services 400 and 191. This is so the authority can assess the feasibility of self-driving technology for public bus services and gain operational insights. Former Transport Minister Chee Hong Tat had said that the use of autonomous vehicles would help to address pressing manpower challenges in the public transport sector, where it has been difficult to hire drivers. LTA's plan is for the autonomous public buses to operate alongside existing manned buses for an initial three-year period. Depending on how they perform, LTA may buy up to 14 more autonomous buses to expand the trial to two more routes later. LTA said it chose to trial the self-driving buses on services 400 and 191 as they are shorter and simpler routes. The authority is also taking a phased approach so it can thoroughly assess the reliability of autonomous vehicle technology while ensuring public safety. During the initial phase of the trial, the self-driving buses will have bus drivers on board to act as safety operators, and the buses will be monitored in real time by LTA. Extra safeguards, such as requiring all passengers to be seated and to wear seat belts, will be put in place, and a remote safety operator will be allowed to take over the supervisory role only after at least six months of testing. LTA had said that the autonomous vehicle developer selected for the trial will have to work with public transport operator SBS Transit, which runs services 400 and 191, to come up with operational concepts and plans for operating the autonomous public buses. The authority said it will evaluate the proposals it receives based on the maturity of the technology, the record of the autonomous vehicle developer and its ability to meet operational needs. Other factors being considered include the supporting infrastructure, such as fleet management and vehicle charging systems. WeRide, which holds driveless vehicle operator permits in China, the US, the United Arab Emirates and France, is no stranger to self-driving vehicle operations in Singapore. Since April 2024, it has been running an autonomous shuttle bus service at integrated resort Resorts World Sentosa. Two of WeRide's driverless road sweepers have also been on trial on public roads in the Marina coastal area since October 2024. Handal Indah has some autonomous vehicle know-how, too, via company founder Lim Han Weng's other business, Yinson Holdings. In 2021, Yinson backed Singapore-based autonomous vehicle start-up MooVita, which today operates a driverless shuttle bus service at Ngee Ann Polytechnic – albeit with a safety driver on board. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
2 hours ago
- Straits Times
US and Chinese officials meet in London for pivotal trade talks
Officials arrive at the entrance to Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville Police officers stand on duty at the entrance of Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville Officials arrive at the entrance to Lancaster House, on the day when the trade talks are due to take place in London between the U.S. and China, in London, Britain, June 9, 2025. REUTERS/Toby Melville LONDON - Top U.S. and Chinese officials were meeting in London on Monday to try to defuse a high-stakes trade dispute that has widened beyond tit-for-tat tariffs to restrictions over rare earths, threatening to cripple supply chains and slow global growth. Officials from the two superpowers were meeting at the ornate Lancaster House to try to get back on track with a preliminary agreement struck last month in Geneva that had briefly lowered the temperature between Washington and Beijing. Since then the U.S. has accused China of slow-walking on its commitments, particularly around rare earths shipments. U.S. economic adviser Kevin Hassett said on Monday that the U.S. team wanted a handshake from China on rare earths after Presidents Donald Trump and Xi Jinping spoke last week. "The purpose of the meeting today is to make sure that they're serious, but to literally get handshakes," Hassett, director of the National Economic Council, told CNBC in an interview. He said the expectation was that immediately after the handshake, export controls would be eased and rare earths released in volume. The talks, which could run into Tuesday, come at a crucial time for both economies, with investors looking for relief from Trump's cascade of tariff orders since his return to the White House in January. China's export growth slowed to a three-month low in May while its factory-gate deflation deepened to its worst level in two years. In the U.S., the trade war has put a huge dent in business and household confidence, and first-quarter gross domestic product contracted due to a record surge in imports as Americans front loaded purchases to beat anticipated price increases. But for now, the impact on inflation has been muted, and the jobs market has remained fairly resilient, though economists expect cracks to become more apparent over the summer. Attending the talks in London will be U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, and a Chinese contingent helmed by Vice Premier He Lifeng. The inclusion of Lutnick, whose agency oversees export controls for the U.S., is one indication of how central rare earths have become. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors. Lutnick did not attend the Geneva talks at which the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. POSITIVE CONCLUSION The second round of meetings comes four days after Trump and Xi spoke by phone, their first direct interaction since Trump's January 20 inauguration. During the more than one-hour-long call, Xi told Trump to back down from trade measures that roiled the global economy and warned him against threatening steps on Taiwan, according to a Chinese government summary. But Trump said on social media the talks focused primarily on trade led to "a very positive conclusion," setting the stage for Monday's meeting in London. The next day, Trump said Xi had agreed to resume shipments to the U.S. of rare earths minerals and magnets and Reuters reported on Friday that China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers. China's decision in April to suspend exports of a wide range of critical minerals and magnets upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. White House spokeswoman Karoline Leavitt told the Fox News program "Sunday Morning Futures" that the U.S. wanted the two sides to build on the progress made in Geneva in the hope they could move towards more comprehensive trade talks. The preliminary deal in Geneva sparked a global relief rally in stock markets, and U.S. indexes that had been in or near bear market levels have recouped the lion's share of their losses. The S&P 500 Index, which at its lowest point in early April was down nearly 18% after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2% below its record high from mid-February. The final third of that rally followed the U.S.-China truce struck in Geneva. Still, that temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and U.S. complaints about China's state-dominated, export-driven economic model. While the UK government will provide a venue for Monday's discussions, it will not be party to them and will have separate talks later in the week with the Chinese delegation. The dollar slipped against all major currencies on Monday as investors waited for news, while oil prices were little changed. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
