China, U.S. agree to seek further tariff pause

Hi everyone. I’m Stephanie LI.Coming up on today’s programChina and the U.S. agree to seek further tariff pause after Stockholm talks;IMF raises China's 2025 growth forecast on stronger-than-expected H1 performance.Here’s what you need to know about China in the past 24 hours Chinese and U.S. officials on Tuesday concluded one and a half days of high‑level trade talks in Stockholm, agreeing to push for the extension of a 90‑day tariff pause that could help stabilize the global economy.The trade and economic teams of China and the United States held “in-depth, candid and constructive exchanges over important topics of mutual interest,” Xinhua reported on Tuesday. Based on the meeting consensus, both sides will continue pushing for the continued extension by 90 days of the pause on 24 percent of reciprocal tariffs of the US side, as well as counter measures of the Chinese side, it said.Over the past day and a half, the two sides reviewed the implementation of the Geneva and London consensuses and gave full affirmation to the progress made, Li Chenggang, China international trade representative with the Ministry of Commerce and vice minister of commerce, said when briefing the press following the new round of economic and trade talks in Stockholm.Both sides are fully aware of the importance of safeguarding a stable and sound China-U.S. economic ties, Li said, adding that the two sides held candid exchanges over each other's major trade and economic concerns.The Chinese and U.S. economic and trade teams will maintain close communication, conduct timely exchanges on trade and economic issues, and continue to promote the stable and healthy development of bilateral economic and trade relations, Li said.The Stockholm talks mark the third such meeting between the two sides in three months and came just days before the expiration of a 90-day tariff truce agreed upon by the two sides, with a deadline approaching on August 12.Chinese Vice Premier He Lifeng, who led the delegation from Beijing, told reporters in Stockholm that the US should work with China to continue to enhance consensus, reduce misunderstandings, strengthen cooperation, further deepen dialogue and consultations, and strive for more win-win outcomes, according to Xinhua.A stable, healthy and sustainable China-US economic and trade relationship serves not only the two countries' respective development goals but also contributes to global economic growth and stability, He said.The IMF yesterday raised its China growth forecast for this year to 4.8 percent from 4 percent, citing stronger-than-expected activity in the first half of the year. It also lifted its global growth outlook to 3 percent from 2.8 percent.GBA expressHong Kong stocks market capitalization reached HKD42.7 trillion in the first half of 2025, up 33 percent year-on-year, the Hong Kong Exchanges and Clearing Ltd (HKEX) said on Tuesday. The exchange recorded an average daily turnover of HKD240.2 billion in the period, up 118 percent year-on-year.The Shenzhen municipal government has repurchased seven undeveloped commercial land plots designated for the Shenzhen Qianhai Huafa Ice and Snow World for CNY4.4 billion, or at a loss of CNY951 million, for the project’s developer, Huafa Properties. The repurchase will not affect the construction progress of the park, which is expected to become the world's largest indoor skiing center once opened to the public in the fourth quarter of this year, the company added.McDonald’s is putting eight prime retail properties in Hong Kong up for sale, with a total estimated value of about HKD1.2 billion, media reported, citing JLL, the sole agent handling the deal. The US fast food giant said restaurant operations at these sites will be unaffected.Industry and company newsChina's summer box office, including presales, topped CNY5.5 billion as of yesterday, led by Dead to Rights, Jurassic World Rebirth, and The Lychee Road, according to film data tracker Beacon. Cinemas have seen some 145 million viewers so far.Profits of China's state-owned and state-controlled enterprises fell 3.1 percent to CNY2.18 trillion in the first half of this year from a year earlier, while their operating revenues slipped 0.2 percent to CNY40.75 trillion, according to data from the finance ministry.More than 30,000 foreign-invested enterprises were established in the Chinese mainland in the first six months of this year, up 12 percent from a year earlier, the Ministry of Commerce said yesterday. The FDI in actual use in the Chinese mainland totaled CNY423.2 billion, down 15 percent in the period. Investment in e-commerce services rose 127 percent; in pharmaceuticals, 53 percent; and in aerospace equipment manufacturing, 36 percent.Xiaomi improved its ranking in the Fortune Global 500 List by 100 positions to 297th last year from the year before, marking the largest jump since the Chinese tech giant made the list for the first time in 2019.Taobao Flash, Alibaba's new instant retail platform, is rapidly gaining popularity among merchants. Participating vendors rose 110 percent this month from June, adding over 12,000 stores. US coffee chain Starbucks, which is considering selling stakes in its China operations, posted a 2 percent drop in same-store global sales in its second quarter ended June 30. But sales in China, its second-biggest market, rose 2 percent. Net revenue in the quarter rose 3.8 percent to USD9.46 billion.Pinduoduo procured 30,000 disaster relief supplies for areas severely affected by rainstorm in Beijing, the Chinese e-commerce firm announced today. All-out disaster rescue effortsare underway in Beijing as the latest round of intense rainstorms had left 30 people dead in the Chinese capital as of midnight Monday. Apple CEO Tim Cook also announced on Weibo today that the US tech giant is donating to support relief and recovery efforts in China.Goldman Sachs Group has raised its 12-month target for the MSCI China Index to 90 from 85, signaling a 12 percent upside from the latest closing price. The revised outlook reflects easing global trade tensions, stronger-than-expected second-quarter gross domestic product data, a recovery in Hong Kong's initial public offerings, record-high southbound capital inflows, and renewed interest from foreign investors in Chinese assets, according to Liu Jinjin, chief China equity strategist at Goldman Sachs.Asia-Pacific highlightsJapan's Meteorological Agency issued a tsunami warning for wide areas along the Pacific coast in the morning after a powerful 8.8-magnitude earthquake struck Russia’s Kamchatka peninsula, Xinhua reported. China also issued a yellow tsunami alert today, which is expected to affect eastern regions including Shanghai and Zhejiang Province. The Tsunami Warning Center of the Chinese Ministry of Natural Resources today estimated that the tide levels in Shanghai will not exceed the warning threshold during the tsunami. Singapore Airlines, often ranked among the best carriers in the world, said net income in its first quarter ended June 30 plunged 59 percent from a year earlier to SGD186 million on lower interest income and losses associated with its stake in Air India. Revenue rose 1.5 percent to SGD4.79 billion. Asia's coal price benchmark rose to a five-month high as Australian Newcastle futures rose to USD115.50 per ton after summer heat waves boosted use of air conditioners and reduced inventories, Bloomberg reported. Coal-fired power generation in Tokyo hit the highest level in 10 months last week amid hot weather.