China's top diplomat Wang Yi visits Europe to seek closer ties
China's top diplomat Wang Yi is on his way to Europe, as Beijing seeks closer ties with the region as a counterweight to Washington. He will visit the EU's headquarters in Brussels, as well as France and Germany. China and the EU have been grappling with deep frictions, including a more than US$350 billion trade deficit. Both parties have also been imposing tit-for-tat tariffs, with the EU seeking to get tougher on what it deems as China's unfair economic practices. Tan Si Hui reports.
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CNA
3 hours ago
- CNA
‘Quality is key': Dior's CEO Delphine Arnault on opening a new chapter at the maison
Dior chief executive Delphine Arnault has said she is opening 'a new chapter' at LVMH's second-biggest brand, emphasising that 'quality is key' as new creative director Jonathan Anderson makes his runway debut amid a luxury downturn. The appointment of the Northern Ireland-born designer in May 2025 made him the first designer since the brand's founder, Christian Dior, to oversee both the men's and women's collections. He is assuming creative control of a brand with an estimated €9.5 billion (US$11.14 billion; S$14.21 billion) in revenues at a time of deteriorating luxury demand, especially in Asia. The choice of Anderson, 40, is the biggest bet by Arnault — eldest child and only daughter of LVMH chair and chief executive Bernard Arnault — since she took the helm in 2023 from former star executive Pietro Beccari, who moved to Louis Vuitton. Anderson, who grew up in the small town of Magherafelt during the Troubles, kicked off Dior's new era with a menswear show last Friday (Jun 27). 'Dior is a fascinating brand,' Arnault told the Financial Times from her office in Paris. 'I worked at Dior from 2001 until 2013, so it's the brand that I know. The growth was spectacular but I think my role as the CEO is to know when it's time to change. And now it's a new chapter.' 'I'm interested to see what is going to come up . . . in a way that's very elevated, very qualitative,' said Arnault of her hopes for Anderson's new designs. 'The next five years is going to be all about quality in the materials and the manufacturing. Quality is key.' Before the current downturn Dior had been one of the luxury industry's star performers. Revenues quadrupled to €9.5 billion between 2017 and 2023, according to estimates from HSBC, helped by extensive price rises. But Arnault's tenure has thus far coincided with a sharp slowdown in the luxury market, especially in China, and consumer pushback against price inflation. Already fragile consumer confidence could be damaged further by the escalating conflict in the Middle East. Meanwhile, a scandal involving labour practices at subcontractors in Italy — Dior agreed to settle a probe last month 'without establishing any infringement' — has tarnished the brand's image. 'The focus [for Arnault] is on reinvigorating sales growth in the aftermath of a period of booming sales,' said Zuzanna Pusz, European luxury goods analyst at UBS. 'But also focusing on re-establishing the value for money relationship in the eyes of the consumer, especially for leather goods.' In April, LVMH's chief financial officer Cecile Cabanis told analysts that Dior's first quarter organic sales growth was 'slightly below' the 5 per cent drop seen across its fashion and leather goods division. The appointment of Anderson is part of Dior's attempt to find a new creative impetus after nine years under outgoing designer Maria Grazia Chiuri. Anderson, formerly creative director of Loewe, left the Spanish brand last year with a catalogue of hits to his name, including its hammock and puzzle bags, as well as a series of critically acclaimed runway collections. Loewe's revenues rose from about €230 million to between €1.5 billion and €2 billion over the course of Anderson's 11-year stint, according to Bernstein analyst Luca Solca's estimates. At Dior, however, Anderson is overseeing a far bigger creative operation — especially in his combined role. Arnault does not expect the brand's new creative head to have an immediate impact on sales. 'I'm really excited about what's next but I think it takes a couple of seasons to understand the vision of a designer,' said Arnault, adding that Anderson was a choice that reflected 'long-term thinking'. Anderson's appointment coincides with a series of executive changes at Dior, including the appointment of former Louis Vuitton executive Pierre-Emmanuel Angeloglou as deputy chief executive. Following the subcontractor scandal in Italy, Dior has created a new industrial division to produce more designs in-house, overseen by Giorgio Striano, who was hired from EssilorLuxottica. Nicolas Carre, another former Louis Vuitton executive, joined Dior as industrial director for leather goods, shoes and fashion jewellery. 'It's about finding the best talents and making them work together,' said Arnault, who worked with many of the team in her previous role at Vuitton, from 2013 to 2022. 'I think we need to have the best teams in terms of creatives . . . but also in terms of the management of the company.' Arnault did not respond to questions about the impact of tariffs on the business but she reaffirmed that the US market — one of luxury's largest by sales — remained critical. Dior plans to open a new Manhattan flagship store in July, and another store on LA's Rodeo Drive in October. But the turbulence in the US under President Donald Trump — whose inauguration was attended by Delphine, Alexandre and Bernard Arnault — has blunted hopes that US shoppers would lead a luxury industry recovery this year. Pusz at UBS said that while the current environment was difficult for luxury Anderson 'seems well suited' for the challenge, citing his record of innovation, delivering a 'powerful brand message', as well as recruiting and managing teams of talented designers. Anderson, who is also creative director and majority owner of an eponymous brand, JW Anderson, will now deliver up to 18 collections every year. But Arnault seemed unfazed by the additional pressures on him, or the risk that the Northern Irishman could suffer creative burnout. 'He's 40, I think he's the most talented designer of his generation,' she said. 'I think he can do a lot of amazing things.'
CNA
3 hours ago
- CNA
Commentary: Is the shine coming off the US-Japan ‘Golden Age'?
TOKYO: 'A friendship like few others' is how President Donald Trump described the United States-Japan relationship in January, declaring his confidence that 'the cherished alliances between our two countries will continue to flourish long into the future!' Not even half a year later, is the shine already coming off what was heralded as a new 'golden age' of ties between the two nations? Trade talks between the two countries, initially expected to yield a quick agreement, have become a slog with the Jul 9 deadline fast approaching. Japan has scrapped a top-level defence meeting it would normally be desperate to attend amid reports of US demands for more defence spending. And distance has opened between Trump and his counterpart, Japanese Prime Minister Shigeru Ishiba, on the situation in the Middle East. JAPAN HAS DUG ITS HEELS IN The biggest obstacle is, of course, tariffs. The unilateral imposition of duties was something Japan had hoped its unique relationship with the US would help it avoid. When that failed, the consensus view was that Tokyo would secure an agreement rather quickly. Instead, Japan's chief negotiator, Ryosei Akazawa, has been traipsing back and forth to the US, most recently this weekend, with the two sides still seemingly far apart – not helped by lack of agreement on the US side over what it even wants. Surprisingly, Japan has dug its heels in, insisting on a full climbdown on auto tariffs and cautioning it won't take a bad deal just to reach a quick one. Domestic media reports suggested an agreement between the two leaders at the Group of Seven in Canada was near, only for Trump to depart early and Ishiba to return home empty-handed. Compounding this is a growing gap in views on defence. Japan lobbied hard to keep trade and security as two separate issues. But then it cancelled the 'two-plus-two' security talks between the defence and diplomatic heads, according to the Financial Times, which cited Tokyo's displeasure with a request from the US to further raise its spending on national security. How much that figure might be isn't clear. Japan has denied that the US is looking for higher spending, but in recent weeks reports have suggested Washington is looking for Tokyo to spend anywhere from 3 per cent to 5 per cent of gross domestic product, with NATO leaders last week agreeing to the higher figure after pressure from Trump. But Japan is already struggling to hit its prior 2 per cent commitment, much less finance it. And most problematically, Ishiba has long stated his opposition to any numerical target, arguing it's more important to define what the money is spent on. The prime minister also scrapped plans to attend NATO meeting in The Hague. GROWING DISTANCE ON IRAN Less attention has been devoted to the distance growing between the two on Iran. Ishiba was lucky that few noticed his remarks on the day Israel attacked. 'The use of military means by Israel cannot be permitted,' he told reporters. 'It's absolutely unacceptable and we strongly condemn this action.' The language is the strongest typically used by Japanese leaders to condemn the actions of other nations, more akin to what a prime minister might use if, say, North Korea conducted a nuclear test or launched a missile over Japan. In a change of direction, just days later at the G7, Japan signed off on a statement that affirmed Israel's right to defend itself, and condemned Iran as the 'principal source of regional instability and terror.' And when the US itself later bombed Iran's nuclear sites, Ishiba expressed neither opposition nor strong support. The opposition has accused him of double standards. DISORGANISED, INTENTIONALLY AMBIGUOUS OR POLITICALLY CONVENIENT? Don't read too much into all this – it might just be the hallmarks of a disorganised and weak administration, one that might not be long for this world. Or possibly it stems from the strange ambiguity Ishiba himself likes to project, with pinning down his exact positions akin to nailing jelly to a wall. And it might also be the case that the prime minister is happy to drag some of these issues out as long as is politically convenient. He was quick to dub the imposition of tariffs a 'national crisis' – language previously used by Japanese leaders for events such as the 2011 earthquake and tsunami, or the COVID-19 pandemic – an act that has given him cover from his opponents both inside and out of the ruling Liberal Democratic Party as his popularity dwindles. Even without the Trump factor, there have long been questions about where Ishiba, who wants a more equal relationship with Washington, sees his country's place in the world. Given that he faces crucial Upper House elections in July, where a bad showing could spell his demise, it might not be worth pondering the question too deeply. But his longevity (in relative terms) has already surprised many who expected his ouster by now. And even if he goes, Trump will still be there for the next three years and counting. Will we look back on it as a high point in ties between the two nations? All that glitters is not gold.
CNA
4 hours ago
- CNA
Trump complains about US-Japan trade talks as Bessent warns of higher tariffs
WASHINGTON :President Donald Trump expressed frustration with U.S.-Japan trade negotiations on Monday as Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches despite good-faith negotiations. Trump wrote in a social media post that Japan's reluctance to import American-grown rice was a sign that countries have become "spoiled with respect to the United States of America." "I have great respect for Japan, they won't take our RICE, and yet they have a massive rice shortage," Trump wrote on Truth Social. "We'll just be sending them a letter, and we love having them as a Trading Partner for many years to come." Trump said last week that his administration would send letters to a number of countries notifying them of their higher tariff rates before July 9, when tariff rates are scheduled to revert from a temporary 10 per cent level to his suspended rates of 11 per cent to 50 per cent announced on April 2. Trump's Monday complaint about U.S.-Japan rice trade follows his comments broadcast on Sunday that Japan engages in "unfair" autos trade with the U.S. White House spokesperson Karoline Leavitt said on Monday that Trump would meet with his trade team to set tariff rates for countries "if they don't come to the table to negotiate in good faith." Bessent, who earlier this month floated the idea of extending the deadline for countries that were negotiating trade deals with the U.S. in good faith, told Bloomberg Television that only Trump would decide on such extensions. He added that he expects "a flurry" of deals ahead of the July 9 deadline and wanted to keep up pressure on trading partners. "We have countries that are negotiating in good faith, but they should be aware that if we can't get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won't have to happen," Bessent said. Japan's main tariff negotiator, Ryosei Akazawa, on Monday said that Japan would continue working with the U.S. to reach a trade agreement while defending Japan's national interest. Akazawa said he was aware of Trump's comments on autos, adding that a continuation of Trump's 25 per cent on autos imported from Japan would cause significant damage to its economy. Another key trading partner, the European Union, is open to a trade agreement that maintains a 10 per cent U.S. tariff on EU goods, but wants U.S. commitments to reduce its tariffs in key sectors such as pharmaceuticals, alcohol, semiconductors and commercial aircraft, Bloomberg News reported, citing people familiar with the matter. Reuters reported earlier this month that European officials are increasingly resigned to a 10 per cent rate of "reciprocal" tariffs being the baseline in any trade deal between the U.S. and the EU. Britain negotiated a trade deal on similar terms, accepting a 10 per cent U.S. tariff on many goods, including autos, in exchange for special access for aircraft engines and British beef.
