Xi-Trump summit plans, Nepal disaster, SCO summit

Chinese President Xi Jinping may take a business delegation to Washington next month, when he is also likely to sign a trade-war truce extension with US President Donald Trump.The potential business delegation is under negotiation ahead of the September 24 summit, the South China Morning Post reported, citing four people with knowledge of the matter. US executives, including Apple’s Tim Cook and Tesla’s Elon Musk, accompanied Trump on his state visit to China in May.Both countries want to prolong the one-year Trade War Truce beyond its November expiration, while disagreeing on the length of an extension, according to the report. China favours a deal stretching to the end of Trump’s term in January 2029, while the US only wants another one-year accord, the article said. The current deal includes a limit on tariffs and a pause on Chinese export controls covering some critical minerals.The Trade War Truce, signed in Busan, South Korea, last year, has cooled tensions between the US and China without removing all friction. The US has hit Chinese manufacturers in recent weeks by banning imports of robots and some bulk-power equipment, as well as levying new tariffs on drones. China has adopted some retaliatory measures.Trump suggested on Thursday that he may impose Iran-related sanctions on Chinese banks, after hitting a number of smaller Chinese businesses earlier this week on “economic D-Day”. The White House is also reportedly considering a new China tariff tied to industrial overcapacity, which would raise levies to the 20 per cent ceiling agreed in Busan.Related news: Chinese Foreign Minister Wang Yi met US Ambassador David Perdue on Wednesday to help lay the groundwork for Xi’s state visit to Washington. Wang said the two sides should “focus on the positive agenda, properly manage differences, remove interference and overcome obstacles to high-level exchanges between the two countries”, according to Xinhua. Discussions were “fruitful”, Perdue said on social media. The week that was Nepal-China landslide: A massive mudslide and flash flood left hundreds dead or missing after crashing through the Gyirong Port border crossing between China and Nepal on Wednesday. Chinese Premier Li Qiang arrived in the region the following day to oversee rescue efforts. The disaster has prompted questions about an early-warning system. China-Nepal trade is also likely to suffer. Elsewhere, Typhoon Saudel became the third tropical cyclone to hit China this year. Earlier in the week, Li pledged “all necessary measures to secure a bumper autumn harvest” during an inspection tour of Heilongjiang and Jilin provinces. Chinese officials will be held accountable for even after leaving their post under revised rules. Share sales: Alibaba held a record secondary share sale in Hong Kong, issuing HK$80 billion (US$10.2 billion) of new stock to support investments in artificial intelligence. Founder Jack Ma bought HK$600 million of new shares. Group chairman Joe Tsai and CEO Eddie Wu Yongming bought a combined HK$120 million. Alibaba owns the SCMP. Memory maker YMTC’s parent, CCSH Corp., is readying to list on Shanghai’s Star Market as it seeks funding for 33 billion yuan of investment plans. AI start-up DeepSeek neared completion of a 50 billion yuan funding round ahead of a possible 2027 IPO. Hong Kong Exchanges is weighing plans to merge its secondary GEM board into the main board. Economic growth: China unveiled measures to boost consumer spending on big-ticket items amid signs of an economic slowdown. The country also laid out plans to develop emerging industries, such as 6G and robotics, as well as publishing draft guidelines for brain-computer interface technology (see SCMP Plus factsheet). Vice-Premier Ding Xuexiang called for greater discretionary spending by local governments. People’s Daily published three commentaries defending the resilience of China’s economy and warning against the risk of stimulus “policy addiction”. Regulators extended a clampdown on wealthy individuals investing overseas. Anti-corruption drive: SCMP published a data bank project breaking down Xi’s 13-year-long anti-corruption drive. The data shows the growth of investigations into retired officials, the high number of investigations in resource-rich regions and the drive’s expansion beyond economic crimes. China’s top legislature reviewed a draft law to combat cross-border corruption. The public were asked to report suspected procurement fraud in the People’s Liberation Army Rocket Force. Business news: Hong Kong awarded the first land tender in the Northern Metropolis megaproject to a group including e-commerce giant JD.com and state-owned mainland developers. Nvidia said it had started shipping H200 AI chips to China. Tiger Brokers’ parent and Futu Holdings both boosted second-quarter sales as overseas expansion offset a Chinese crackdown on illegal cross-border stock trading. Louis Vuitton announced the closure of its store in Guiyang, Guizhou province. The week ahead Xi at SCO: Chinese President Xi Jinping travels to Kyrgyzstan and Egypt on his second overseas trip of the year. His itinerary includes the annual summit of the Shanghai Cooperation Organisation, which takes place in the Kyrgyzstani capital, Bishkek, on Monday and Tuesday. Russian President Vladimir Putin, Iranian President Masoud Pezeshkian and Indian Prime Minister Narendra Modi will all attend the event (see SCMP Plus factsheet). Xi will continue on to Egypt, where he will meet President Abdel-Fattah el-Sisi, before concluding the trip on Thursday. Shein debut: Fast-fashion giant Shein makes its stock market trading debut on Tuesday, having raised HK$13.6 billion (US$1.7 billion) in a Hong Kong initial public offering. Shares were priced towards the middle of the marketing range, giving Shein a valuation of about US$26 billion, Bloomberg News reported. The company was worth roughly US$100 billion four years ago. Mainland investors will be able to buy Hong Kong shares of Baidu via Stock Connect from Tuesday following the search giant’s listing upgrade. A HK$50 billion sale of Hong Kong Silver Bonds closes on Friday. Factory activity: China’s official purchasing managers’ index, due on Monday, may show a second month of contraction for manufacturing. The August reading will come in at 49.9, just below the 50 threshold dividing contraction from expansion, based on economists’ forecasts compiled by financial data provider Wind. July’s reading was 49.2. S&P Global will also release the RatingDog PMIs for manufacturing and services next week. US-China tensions: US tariffs on imported drones take effect on Thursday, with levies running as high as 100 per cent. China dominates global drone production. Thirty US universities, including Harvard and MIT, have until Monday to complete audits of foreign research partnerships, including tie-ups with China. Institutions risk losing federal funding if they miss the Pentagon’s submission deadline. Regulatory changes: China begins levying a 2 per cent consumption tax on lithium-ion batteries from Tuesday as part of efforts to curb price wars. New rules targeting misinformation online come into force the same day. Also on Tuesday, foreign tourists will be able to start collecting value added tax refunds via a new electronic system. In Hong Kong, a public consultation on increased tax incentives for corporate treasury centres closes on Friday. Hong Kong courts: Jailed activist Joshua Wong Chi-fung is likely to plead guilty at the Hong Kong High Court on Wednesday after being charged with conspiring to collude with foreign forces under the National Security Law. Seven individuals and two firms will also appear in court the same day on charges tied to Hong Kong’s deadliest blaze since 1948. The Tai Po housing estate fire killed 168 people and left nearly 5,000 homeless.