World Business Report How is China going to hit back in the US trade war?
The heat seems to be back under those trade tensions between the US and China - we'll hear why Beijing has accused the US of 'seriously violating' the trade truce between the pair, and look at how it plans to respond in just a moment
Also plans to boost internal trading and turbocharge the Canadian economy - that's on the agenda as the country's State leaders meet with the Central Government against perhaps the most difficult economic backdrop Canada has ever faced, in its own trade dispute with the US.
And we'll hear how the city of Lagos hopes to persuade commuters out of their cars and onto the water...
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Reuters
42 minutes ago
- Reuters
Huawei launches Pura 80 smartphone series in next step of China comeback
BEIJING, June 11 (Reuters) - Chinese tech giant Huawei ( launched its Pura 80 smartphone series on Wednesday, as the company seeks to cement its comeback in China's premium smartphone market following years of U.S. sanctions. Huawei's latest flagship launch demonstrates the Chinese tech giant's continued efforts to reclaim the top spot in its home market despite ongoing U.S. sanctions. Each new phone release is closely watched as a barometer of the company's technological capabilities and market resilience following years of restrictions that severely impacted its smartphone business. Huawei's resurgence has intensified pressure on Apple (AAPL.O), opens new tab, which has seen its market share in China steadily decline and has increasingly relied on price discounts to stimulate sales. Huawei unveiled the Pura 80 series through a livestream event, with consumer business unit head Yu Chengdong focusing heavily on camera capabilities and AI features while staying silent about the chips powering the devices. The series includes four models: Pura 80, Pura 80 Pro, Pura 80 Pro+, and Pura 80 Ultra. Pricing starts at 6,499 yuan ($905) for the Pro series launching June 14, with the Pro+ also launching June 14 at 7,999 yuan and the Ultra at 9,999 yuan on June 26. The base model launches in July. The cameras use XMAGE technology and feature ultra-wide-angle and macro telephoto lenses with embedded AI that can identify objects and provide information like tourist guides. Huawei phone launches generate significant interest as many view them as the company defying U.S. sanctions. On Chinese microblogging platform Weibo, three of the top ten trending topics on Wednesday were Pura 80-related. User reactions were mixed, with many praising the camera capabilities and sleek design while others complained the prices were too high and not worth the cost.


Reuters
43 minutes ago
- Reuters
As US trade truce gets back on track, some Chinese exporters are 'slowly dying'
SHANGHAI/BEIJING, June 11 (Reuters) - Jacky Ren, who owns a kitchen appliance factory in China, says exporters in his industry are now selling at a loss to keep their U.S. clients, with little power to say "no" to requests for lower prices on products facing higher tariffs. If an exporter does not take such orders, Ren said, "you will die immediately. So, people think it's better to die slowly." U.S. and Chinese officials agreed on Tuesday on ways to restore a trade truce and roll back duelling export restrictions, including on rare earths, where China has a near-monopoly in production and major leverage in the negotiations. But in the meantime, the pain from U.S. tariffs is deepening in China, especially among smaller exporters such as Ren's Gstar Electronics Appliance Co., which did not move part of their production abroad after U.S. President Donald Trump imposed tariffs in his first term in office. The growing pressure on companies to sell at a loss or to cut wages and jobs to stay afloat gives Washington a pain point to press Beijing in coming weeks and months as talks continue between the two sides to rebalance their trade relationship. "If it lasts more than three or four months, I think many of these small and medium-sized enterprises will not be able to bear it," said Zhiwu Chen, chair professor of finance at the University of Hong Kong. "This is definitely a bargaining chip for the United States." This week's talks in London are expected to bring the two sides back to where they were after an initial discussion in Geneva last month, when they agreed to cut back tariffs from triple-digits to levels that are still damaging for both sides, but at least allow trade flows to resume. U.S. levies on Chinese goods remain 30 percentage points higher than last year. In April, when tariffs were at their highest, the number of loss-making Chinese industrial firms rose 3.6% year-on-year to 164,467 - a whopping 32% of the total, official statistics show. Industrial capacity utilisation dropped to 74.1% in the first quarter of this year - when Washington began raising tariffs - from 76.2% in the last quarter of 2024, according to Chinese government data. It remains near record lows. And while China's overall export growth rate of 4.8% in May might be interpreted as a sign of resilience - even as U.S. exports shrank by more than 30% - the intense competition among Chinese manufacturers looking for a slice of the subdued external demand is evident in falling prices. "People forget, but the current tariff level is already quite painful," says Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis. "This is a weakness" for Beijing, she said, but cautioned "it's not a big card" for Washington, which has its own worries over high inflation and product scarcity. Beijing was also confident it can bear more pain than its rival, she said. Before the meeting in Switzerland, Beijing had grown increasingly alarmed about internal signals that Chinese firms were struggling to avoid bankruptcies, including in labour-intensive industries such as furniture and toys, Reuters reported last month. The subsequent rollback in tariffs may have saved China from a nightmare scenario of mass layoffs, but analysts say millions of jobs remain at risk. Candice Li, a marketing manager for a medical devices maker in southern China, says her employer has not paid wages for the past two months due to cashflow issues caused by new demands from U.S. clients who want to protect themselves from the tariff uncertainty. Li says U.S. buyers no longer offer an advance deposit for their orders and demand to only make payments 120-180 days after delivery. And because other Chinese firms accept such terms, her employer is not in a position to fight back. "They have us under their thumb," Li said. "It looks calm on the surface, but it's really hard to do business now." "The company can't even manage to pay wages," she said, adding a quarter of the staff left as a result. "It's really hard to keep the company running." To be sure, not all Chinese firms are under such strain. In the short term, neither the United States nor other countries can significantly reduce their reliance on supply chains from an economy that produces about a third of the world's goods. The pain is being felt mostly among small firms in sectors that don't make essential products, such as Christmas decorations or where China can easily be replaced by other producers - for instance, in household appliances and other low-to-mid-range electronics. Across the economy, industrial profits in China still rose 1.4% year-on-year in January-April, according to official statistics that capture data from firms with annual revenue of at least 20 million yuan ($2.78 million). China's headline resilience has been helped by U.S. importers frontloading orders ahead of higher tariffs, while Beijing ramped up fiscal spending and cut interest rates, said Shuang Ding, Standard Chartered's chief Greater China and North Asia economist. But as these mitigating factors wane in coming months, Beijing might grow increasingly uncomfortable, analysts warn. "They still rely on low-end manufacturing sectors, in particular exporting sectors, to support their general macroeconomy," said He-Ling Shi, economics professor at Monash University in Melbourne. "The American government has to react to pressure from industries. China's central government ... doesn't need to react immediately, but in the long term, it's still a big concern." ($1 = 7.1859 Chinese yuan renminbi)

Finextra
an hour ago
- Finextra
ROI on AI deployment hits 136%
Companies are realizing a 136% spike in return on investment (ROI) from AI in financial technology. 0 Savings exceed $1.36m for every $1m invested over a three-year period, according to a global survey. Amid economic turbulence, fueled by tariffs and global trade disruptions, AI is being tied directly to enterprises' financial performance. Trillions of dollars flow into AI investments as companies chase ROI hope. With the global AI market set to surge to $4.8 trillion by 2033, this trend is only set to grow for the foreseeable future. But most companies still struggle to prove returns. New research make these proven returns critical for economic growth. 82% of businesses investing significantly in AI see an increase in revenue, while 53% are seeing an increase in gross profit, compared to those not investing as heavily. The findings were revealed in Basware's AI to ROI report, conducted by independent research firm, Financial Times Longitude, observing the attitudes of AI for 400 global CFOs at enterprise businesses. AI reality check The survey found that cost efficiency tops every CFO's priority list, with 32% naming it their biggest transformation goal. Finance teams are facing mounting pressure to do more with less as cash flow issues persist. Manual processes in companies create bottlenecks, increase errors, and drain resources. In contrast, it was found that companies investing in AI are able to tackle their biggest challenges - data accuracy, fraud detection, and process delays. 75% report that AI enables its employees to focus on strategic activities instead of repetitive manual work. Jason Kurtz, CEO of Basware, commented on the findings: "We've been speaking with customers during our World Tour and it's clear that some finance leaders are facing the most pressure they've felt in 40 years. Companies prioritizing AI investment in areas that drive significant ROI becomes essential for gaining CFO and boardroom approval. It's not solely about saving money but funding the ability to accelerate growth." AI is no longer optional - it's essential The 136% ROI achieved by successful companies proves AI works when applied correctly to specific business problems. To address the issues being faced by finance teams, Basware is launching InvoiceAI. InvoiceAI brings AI into Basware's software across the invoice lifecycle in a way that helps AP teams maximize the technology. Basware's InvoiceAI roadmap features 16 new products in development. Two of the first products launched include: • AP Business Agent - a GenAI-powered tool that summarizes invoices. It translates invoice numbers into words to help AP teams combine statistical analysis with business context. It spots patterns that humans may miss. It gives business users instant, AI-generated guidance on what to do with an invoice - right inside their approval workflow. • AP Data Agent - an Insights tool that allows users to ask questions around invoices. Using natural language processing, it allows them to get clear answers about their invoices and produce reports. It provides recommendations on how to improve AP processes and better manage working capital. "InvoiceAI isn't just two new products - it's our framework for bringing AI advances directly into the invoice lifecycle as the technology evolves," added Jason Kurtz. "We're helping customers gain complete control of every invoice every time by staying ahead of whatever AI breakthrough comes next." 40 Years of Invoice Lifecycle Management Leadership Basware is celebrating 40 years of Invoice Lifecycle Management. During the four decades, Basware has handled more than $10.1 trillion in business spend - more than the economic output of the UK, Japan, and Australia. InvoiceAI is underpinned by real-world data, trained on over 2.3 billion invoices, to deliver ROI at scale for finance teams.