China exports lose steam ahead of US trade talks in London
TOKYO/SHANGHAI -- China's exports grew at a slower pace in May while consumer prices fell for a fourth straight month, official data showed on Monday, hours before U.S and Chinese trade negotiators were due to reconvene in London for high-stakes talks.
Total overseas shipments increased 4.8% year-on-year in dollar terms, according to statistics released by the Chinese customs office. The reading missed a 5% rise forecast in a Reuters poll of economists, and declined from April's 8.1% growth.
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The Mainichi
5 minutes ago
- The Mainichi
India's Modi to meet China's top diplomat as Asian powers rebuild ties
NEW DELHI (AP) -- Indian Prime Minister Narendra Modi will meet with China's top diplomat on Tuesday in a sign of easing tensions between the nuclear-armed neighbors after a yearslong standoff between the Asian powers. Chinese Foreign Minister Wang Yi, who arrived in India on Monday, is scheduled to hold talks with Modi and other leaders about the disputed border in the Himalayan mountains. Reducing the number of troops on the border and possibly resuming trade in the contested region are expected to be on the agenda. The rebuilding of ties coincides with friction between New Delhi and Washington after U.S. President Donald Trump imposed steep tariffs on India, a longtime ally seen as a counterbalance against China's influence in Asia. India is part of the Quad security alliance with the U.S., along with Australia and Japan. 'Compromise at the highest political level' India and China's decades-old border dispute worsened in 2020 after a deadly clash between their troops in the Ladakh region. The chill in relations affected trade, diplomacy and air travel as both sides deployed tens of thousands of security forces in border areas. Some progress has been made since then. Last year, India and China agreed to a pact on border patrols and withdrew additional forces along some border areas. Both countries continue to fortify their border by building roads and rail networks. In recent months, the countries have increased official visits and discussed easing some trade restrictions, movement of citizens and visas for businesspeople. In June, Beijing allowed pilgrims from India to visit holy sites in Tibet. Both sides are working to restore direct flights. Last week, the spokesman for India's foreign ministry, Randhir Jaiswal, said India and China were in discussions to restart trade through three points along their 3,488-kilometer (2,167-mile) border. Manoj Joshi, a fellow at the Observer Research Foundation, a New Delhi-based think tank, said relations are still at an uneasy level of normalization. "Settling the boundary issue between the two countries requires political compromise at the highest political level," said Joshi, who also served as a member of the advisory board for India's National Security Council. He asserted that the countries are "still talking past each other when it comes to the border dispute and issues surrounding it." Ahead of his meeting with Modi, Wang met India's National Security Adviser Ajit Doval and discussed the way forward to bolster the relationship. "The setbacks we experienced in the past few years were not in the interest of the people of our two countries. We are heartened to see the stability that is now restored in the borders," Wang said. On Monday, China's Foreign Ministry spokesperson Mao Ning said Beijing is willing to take Wang's India visit as an opportunity to work with the Indian side to "properly handle differences and promote the sustained, sound and stable development of China-India relations." Mao said Wang's meeting with Modi's national security adviser will "continue in-depth communication to jointly safeguard peace and tranquility in the border areas." Modi plans to visit China soon The thaw between Beijing and New Delhi began last October when Modi and Chinese President Xi Jinping met at a summit of emerging economies in Russia. It was the first time the leaders had spoken in person since 2019. Modi is set to meet Xi when he travels to China late this month -- his first visit in seven years -- to attend the summit of the Shanghai Cooperation Organization, a regional grouping formed by China, Russia and others to counter U.S. influence in Asia. Earlier this year, Xi called for India and China's relations to take the form of a "dragon-elephant tango" -- a dance between the emblematic animals of the countries. Last month, India's external affairs minister visited Beijing in his first trip to China since 2020. The US and Pakistan play roles in the thaw The renewed engagement comes as New Delhi's ties with Trump are fraying. Washington has imposed a 50% tariff on Indian goods, which includes a penalty of 25% for purchasing Russian crude oil. The tariffs take effect Aug. 27. India has shown no sign of backing down, instead signing more agreements with Russia to deepen economic cooperation. Trump's renewed engagement with India's arch rival, Pakistan, has also encouraged New Delhi's overtures to China, said Lt. Gen. D.S. Hooda, who led the Indian military's Northern Command from 2014 to 2016. In June, Trump hosted Pakistan's army chief for a White House lunch and later announced an energy deal with Islamabad to jointly develop the country's oil reserves. Both followed Trump's claims of brokering a ceasefire between India and Pakistan after the two sides traded military strikes in May. That clash saw Pakistan use Chinese-made military jets and missiles against India. "China is heavily invested in Pakistan and, practically speaking, you can't have any expectation that Beijing will hold back support to Islamabad," Hooda said. "But you can't have two hostile neighbors on your borders and simultaneously deal with them also."
Nikkei Asia
9 minutes ago
- Nikkei Asia
IKEA bets big on India with varied store formats and supply chain expansion
Retail The Swedish furniture brand is rolling out compact shops and mixed-use developments An Ikea store in Bengaluru in June 2022. In a shift from the vast, warehouse-style outlets synonymous with the brand, the Swedish furniture retailer is now rolling out city-friendly outlets designed for high-density markets in India. © Reuters NEETA LAL August 19, 2025 15:08 JST NEW DELHI -- Swedish home-furnishing giant IKEA is expanding its India footprint through a blend of compact city stores, sprawling mixed-use developments and a robust online push. At the same time, it is integrating the South Asian nation more tightly into its global supply chain to better serve the Indian market and diversify its production sources.
Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Intel Gets $2 Billion Lifeline in the Form of SoftBank Equity Investment
Aug 19 (Reuters) – Intel INTC.O is getting a $2 billion capital injection from SoftBank Group 9984.T in a major vote of confidence for the troubled U.S. chipmaker that is in the middle of a turnaround effort. The equity investment, announced by the two companies on Monday, is a lifeline for the once-iconic U.S. chipmaker which has struggled to compete after years of management blunders that left it with virtually no foothold in the booming artificial intelligence chip industry. It will make SoftBank a top-10 shareholder of Intel and add to the Japanese tech investor's ambitious bet on artificial intelligence that includes the $500 billion Stargate U.S. data center project. 'SoftBank's investment helps, but it is not what is going to move the dial for Intel,' said Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors. 'It's more to maintain this very good relationship he has with Trump,' he said, referring to Softbank CEO Masayoshi Son. The deal follows media reports last week that the U.S. government may buy a stake in Intel, after a meeting between new CEO Lip-Bu Tan and President Donald Trump that was sparked by the President's demand for Tan's resignation over his ties to Chinese firms. It also comes as Tokyo pledged a $550 billion investment package into the U.S. last month as part of a trade deal with Washington. The Intel investment is not currently part of that package, a Japanese government source with knowledge of the negotiations said. SoftBank's decision to invest in Intel is not connected to Trump, a person familiar with the matter told Reuters. The White House did not immediately respond to a request for comment. 'This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role,' Son said in a statement. It will pay $23 per Intel share, a slight discount to Monday's closing price of $23.66. SoftBank's investment will come via a primary issuance of common stock by Intel, and, based on the U.S. company's market capitalisation at close of trading on Monday, represent an equity stake of just under 2%, an Intel spokesperson said. The Japanese company would become the sixth largest investor in Intel, according to LSEG data. SoftBank shares dropped more than 5% on Tuesday following the announcement, while Intel surged 5.6% in after-market hours trading. The Japanese company will only take an equity stake in Intel and will neither seek a board seat nor commit to buying Intel's chips, the person familiar with the matter said. MULTIPLE CHALLENGES Intel has struggled financially and recorded an annual loss of $18.8 billion in 2024, its first such loss since 1986, as it grapples with multiple challenges. Its longtime rival AMD AMD.O has been gaining share in Intel's mainstay personal computer and server semiconductor markets, while its ambitious and costly plan for a chip contracting business that rivals that of Taiwan's TSMC has failed to take off. The company is now considering a significant change to its contract chip manufacturing business to win major customers, Reuters reported last month, in a potentially expensive shift from its previous strategies. 'Intel's dual role as designer and manufacturer/fabricator uniquely positions it as potentially the best platform in the U.S. to compete with TSMC,' said Charu Chanana, chief investment strategist at Saxo. Bloomberg News reported earlier on Monday that the U.S. government is in talks to take a 10% stake in Intel. SoftBank declined to provide more details on the Intel investment when asked to comment by Reuters. Tan, a chip industry veteran who also served as a SoftBank board member before quitting in 2022, thanked Son for 'the confidence he has placed in Intel with this investment.' The Intel funding is the latest in the Japanese company's run of mammoth investment announcements in 2025, which include committing $30 billion to ChatGPT maker OpenAI as well as leading the financing for Stargate.
