China's Huawei plays down its chipmaking capabilities
Huawei's founder said the US was exaggerating the Chinese chipmaker's capabilities and played down his company's technology amid trade
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USA Today
an hour ago
- USA Today
US, China reach deal to ease export curbs, keep tariff truce alive
US, China reach deal to ease export curbs, keep tariff truce alive Show Caption Hide Caption Commerce Secretary Lutnick optimistic about US-China trade talks As delegations from the US and China begin a second day of trade talks, US Commerce Secretary Howard Lutnick said things are "going well." Bloomberg LONDON, June 10 (Reuters) - U.S. and Chinese officials said on Tuesday they had agreed on a framework to get their trade truce back on track and remove China's export restrictions on rare earths while offering little sign of a durable resolution to longstanding trade tensions. At the end of two days of intense negotiations in London, U.S. Commerce Secretary Howard Lutnick told reporters the framework deal puts "meat on the bones" of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs that had reached crushing triple-digit levels. But the Geneva deal had faltered over China's continued curbs on critical minerals exports, prompting the Trump administration to respond with export controls of its own preventing shipments of semiconductor design software, aircraft and other goods to China. Lutnick said the agreement reached in London would remove restrictions on Chinese exports of rare earth minerals and magnets and some of the recent U.S. export restrictions "in a balanced way", but did not provide details after the talks concluded around midnight London time (2300 GMT). "We have reached a framework to implement the Geneva consensus and the call between the two presidents," Lutnick said, adding that both sides will now return to present the framework to their respective presidents for approvals. "And if that is approved, we will then implement the framework," he said. More: US stocks end up, awaiting China-US trade talk news. S&P 500 scores third straight gain In a separate briefing, China's Vice Commerce Minister Li Chenggang also said a trade framework had been reached in principle that would be taken back to U.S. and Chinese leaders. U.S. President Donald Trump's shifting tariff policies have roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. The World Bank on Tuesday slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. The deal may keep the Geneva agreement from unravelling over duelling export controls, but does little to resolve deep differences over Trump's unilateral tariffs and longstanding U.S. complaints about China's state-led, export-driven economic model. The two sides left Geneva with fundamentally different views of the terms of that agreement and needed to be more specific on required actions, said Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center in Washington. "They are back to square one but that's much better than square zero," Lipsky added. The two sides have until August 10 to negotiate a more comprehensive agreement to ease trade tensions, or tariff rates will snap back from about 30% to 145% on the U.S. side and from 10% to 125% on the Chinese side. MARKETS CAUTIOUS Global stocks have recovered their hefty losses after Trump's April "Liberation Day" tariff announcement and are now near record highs. Investors burned by earlier turmoil offered a cautious response to the deal and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.57%. "The devil will be in the details, but the lack of reaction suggests this outcome was fully expected," said Chris Weston, head of research at Pepperstone in Melbourne. "The details matter, especially around the degree of rare earths bound for the U.S., and the subsequent freedom for U.S.-produced chips to head east, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported." More: Trump and China's Xi break the ice with first phone call since launch of trade war Signs of the curbs loosening surfaced in China, as several Shenzhen-listed rare earth magnet firms, including JL MAG Innuovo Technology and Beijing Zhong Ke San Huan said they have obtained export licenses from Chinese authorities. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains. In May, the U.S. responded by halting shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued. CHINA EXPORTS PLUNGED A resolution to the trade war may require policy adjustments from all countries to treat financial imbalances or otherwise greatly risk mutual economic damage, European Central Bank President Christine Lagarde said on a rare visit to Beijing on Wednesday. Customs data published on Monday showed that China's overall exports to the U.S. plunged 34.5% in May, the sharpest drop since the outbreak of the COVID pandemic. While the impact on U.S. inflation and its jobs market has so far been muted, tariffs have hammered U.S. business and household confidence and the dollar remains under pressure. Beijing-based lawyer Peter Wu, 28, saw the talks as "a good signal" even if details were not fully negotiated. "I feel that fighting a trade war in the context of global integration is a lose-lose situation for both sides. I naturally hope that my motherland will be better," he said. China, Mexico, the European Union, Japan, Canada and many airlines and aerospace companies worldwide urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, according to documents released Tuesday. Just after the framework deal was announced, a U.S. appeals court allowed Trump's most sweeping tariffs to stay in effect while it reviews a lower court decision blocking them on grounds that they exceeded Trump's legal authority by imposing them. The decision keeps alive a key pressure point on China, Trump's currently suspended 34% "reciprocal" duties that had prompted swift tariff escalation. (Additional reporting by David Milliken and William James in London and Sachin Ravikumar; Ethan Wang, Shi Bu, Yuhan Lin and Alessandro Diviggiano in Beijing; Writing by David Lawder, Kate Holton and Liz Lee; Editing by David Evans, Mark Potter, Nick Zieminski and Lincoln Feast.)
USA Today
an hour ago
- USA Today
Who's listening to Negative Nelly? Not these investors. Survey shows they're optimistic.
Who's listening to Negative Nelly? Not these investors. Survey shows they're optimistic. Show Caption Hide Caption The trade war hits stock markets — how can you protect your finances? The global trade war has hit the stock markets — this is how you can protect your finances. Americans may have gotten pretty good at tuning out negative news and predictions, at least when it comes to investing, a Wealthfront survey suggests. Individuals surveyed by investment platform Wealthfront continued investing through the April U.S. stock market volatility stemming from President Donald Trump's tariff back-and-forth, and nearly 30% say they plan to invest more in U.S. stocks in the future. That may seem counterintuitive considering the many dire forecasts for the economy and the stock market from tariff wars, but 'it's also possible that investors are getting better at handling the constant flow of headlines and uncertainties that have shaped the market lately,' said Alex Michalka, head of investment strategy at Wealthfront. Optimism rises In May, 55% of respondents said they were somewhat or very optimistic about the U.S. stock market over the next six months. That's significantly higher than the 42% in April who felt upbeat. The improved vibes are 'likely fueled by the postponement of tariffs and the growing perception that future trade policies could be more moderate than initially anticipated,' Michalka said. Since Trump first announced his aggressive tariff plan on April 2, some of the highest tariffs have been iced as the administration tries to strike trade deals. The latest, and arguably the most significant, talks are occurring this week in London with Chinese officials. Is the worst over? Market volatility isn't necessarily over, and it can be uncomfortable for investors, but it's a fact of life, Michalka said. Once people understand and accept that, it's easier to stay the course and remain optimistic. 'During Covid, stocks went down really fast, but they also came back really fast,' said Nick Bour, founder and chief executive of Inspire Wealth in Brighton, Michigan. 'If you get out, you could miss the big bounce back.' Stocks ended May up 6% and are up again on the year. Additionally, if you took advantage of tax-loss harvesting and dollar-cost averaging during the volatility earlier this year, you may have even done better. Tax-loss harvesting means selling stocks that are losing money, recognizing the loss, and using it to offset capital gains, or profits made from other holdings, even if they are different types of investments or are being held in different accounts. Dollar-cost averaging is buying stock at regular intervals, regardless of whether prices are falling or rising. 'Not only did you buy investments 'at a discount,' you should have potentially valuable losses to use to lower your tax bill come tax time next year,' Michalka said. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
Yahoo
an hour ago
- Yahoo
Huawei launches Pura 80 smartphone series in next step of China comeback
BEIJING (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. WHY IT'S IMPORTANT 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, which has seen its market share in China steadily decline and has increasingly relied on price discounts to stimulate sales. THE EVENT 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 PHONES 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. KEY FEATURES 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. THE RESPONSE 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
