China raises economic pressure on Japan in dispute over Taiwan

Good morning and welcome again to FirstFT Asia. In as we speak’s e-newsletter:

• China-Japan fallout worsens

• Meta beats the FTC’s antitrust go well with

• The rising downside with China’s murky financial information

China has intensified its financial stress on Japan in response to Japanese Prime Minister Sanae Takaichi’s blunt feedback on Taiwan. Right here’s the newest on the dispute.

Journey bans and cancelled occasions: Employees at 4 separate Chinese language state-owned enterprises in Shanghai and Zhejiang and Hunan provinces stated managers had informed them to cancel all journeys to Japan over the row, following a authorities journey warning final week. China has additionally cancelled tour teams to Japan and journey companies have stopped selling it as a vacation spot. Within the Chinese language film business, an web platform monitoring new releases stated two Japanese movies had been postponed.

‘Basic harm’ to relations: The strikes are a part of a broadening response by Beijing to Takaichi’s suggestion {that a} Chinese language assault on Taiwan would possibly immediate navy intervention by Tokyo. Talks in Beijing yesterday between Masaaki Kanai, head of the Japan international ministry’s bureau overlaying Asian affairs, and Chinese language counterpart Liu Jinsong made no apparent progress in easing tensions. The Chinese language ministry stated Liu informed Kanai that Takaichi’s remarks had “induced elementary harm to the political basis” of ties between the 2 international locations.

In one other measure of the severity of the plunge in relations, the Beijing-Tokyo Discussion board, a flagship annual assembly of students from each international locations, shall be postponed this 12 months for the primary time because it was launched in 2005. Read more about the growing fallout from the dispute.

• US-China competitors: An influential congressional fee stated the US authorities needs an overhaul to deal with security-related financial threats from China.

• UK warns China towards spying: London has informed Beijing that it’s going to by no means settle for makes an attempt to “intervene in our sovereign affairs” after MI5 alerted MPs that Beijing’s intelligence companies are trying to recruit people who work in parliament.

Right here’s what else we’re retaining tabs on as we speak:

• Financial information: Japan and Malaysia report October commerce information

• Chinese language diplomacy: Premier Li Qiang begins a two-day official go to to Zambia forward of travelling to the G20 summit in South Africa. In the meantime international minister Wang Yi embarks on a four-day tour of central Asia, starting with a go to to Kyrgyzstan.

• Financial coverage: Indonesia’s central financial institution broadcasts its charge choice. The US Federal Reserve will publish the minutes from its newest rate-setting assembly.

5 extra high tales

1. Meta has received the antitrust case introduced by the US Federal Commerce Fee that threatened to interrupt aside the corporate after a decide dominated the social media large does not hold an illegal monopoly. The FTC had sought to pressure the $1.5tn tech firm to unwind its acquisitions of messaging platform WhatsApp and photo-sharing app Instagram.

2. The US Home of Representatives has voted overwhelmingly to pressure the Division of Justice to launch its recordsdata on Jeffrey Epstein, after Donald Trump abruptly modified course and inspired Republicans to again the measure. The long-running scandal has piled stress on the US president and raised recent questions on his hyperlinks to the late convicted little one intercourse offender. Here’s what comes next.

• Associated information: Former US Treasury secretary Lawrence Summers stated he would step again from public commitments after paperwork confirmed he asked Epstein for advice on pursuing an extramarital relationship with a feminine mentee.

3. Two cupboard ministers within the Philippines have resigned after being linked to alleged graft over flood-control initiatives awarded by the federal government. The mounting scandal has undermined investor confidence and financial progress, whereas a whole lot of 1000’s of Filipinos have taken to the streets calling for accountability.

4. Trump dismissed questions on journalist Jamal Khashoggi’s homicide yesterday, as he defended his “buddy” Saudi Crown Prince Mohammed bin Salman and touted as much as $1tn of funding from the dominion. Talking alongside Prince Mohammed within the Oval Workplace, the US president lashed out after reporters asked him about Khashoggi’s killing by Saudi brokers.

5. A majority of world fund managers assume corporations are overinvesting, as market nervousness grows in regards to the sustainability of the AI spending growth. The findings from a Bank of America survey come amid a pullback on Wall Avenue in current weeks, triggered by rising considerations in regards to the sustainability of this spending.

• ‘Frothy’ AI valuations: US tech shares bought off yesterday as worries mounted over excessive valuations for AI corporations and buyers braced themselves for earnings later this week from business titan Nvidia.

The Huge Learn

The disappearance from public life for nearly a 12 months of a Chinese language economist who forged doubt on the nation’s official progress figures highlights the political sensitivity surrounding authorities information. The reliability of China’s financial statistics has drawn scrutiny for years however the questions have become more urgent because the economic system has misplaced momentum and commerce tensions with the US have mounted.

We’re additionally studying . . . 

• ‘Child Shark’ IPO: Shares of Pinkfong, the South Korean firm behind the hit youngsters’s tune, jumped within the studio’s trading debut.

• India retail battle: Mukesh Ambani’s Reliance, the nation’s most respected firm, is battling mom-and-pop stores for Indian buyers.

• Trump vs BBC: The US president has ample motive to go after the British proper’s most relished goal, writes Edward Luce.

Chart of the day

The degradation of the huge Congo Basin, generally known as the world’s “second lung”, is taking a toll throughout the African continent and threatening one of many world’s most traded and beloved crops: cocoa. Here’s how chocolate makers are responding.

Take a break from the information . . . 

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