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Good morning. China’s ambassador to Washington has warned Beijing will retaliate against US national security measures targeted at the country, including a mechanism to screen inbound investment being prepared by the White House.
Speaking at the Aspen Security Forum, Xie Feng said China “cannot remain silent” while the US imposes sanctions and export controls that will make it harder for China to secure advanced US technology, including cutting-end chips.
“The Chinese government cannot simply sit idly by,” Xie told the security forum on Wednesday. “We will not make provocations, but we will not flinch from provocations. So, China definitely will make our response.”
Xie was speaking as the Biden administration put the finishing touches to an investment screening mechanism designed to cut the amount of US money invested in Chinese entities involved in areas including semiconductors, quantum computing and artificial intelligence that could help its military.
Beijing has recently taken steps that have been interpreted as retaliation by the US and its allies, including a ban on some Chinese entities from buying US chipmaker Micron’s semiconductors.
But China doesn’t “want a trade war [or] technological war,” Xie said. “We want to say goodbye to the Iron Curtain, the silicon curtain.” Here’s the full story.
And check out other recent developments in US-China relations:
Here’s what else I’m keeping tabs on today:
Turkey interest rate decision: Turkey’s central bank could make one of its biggest-ever pivots as the country’s new economic leadership shifts away from policies that have sent inflation soaring and investors fleeing. Economists expect the central bank to raise its policy rate by 500 basis points to 20 per cent. (Reuters)
China monetary policy: The People’s Bank of China announces its loan prime rate decision.
Blackstone’s march to $1tn: The private equity group reports second-quarter earnings that could show it surpassing $1tn in assets under management. But the milestone risks being undermined, FT’s Antoine Gara reports. Here’s why.
Women’s World Cup: The tournament kicks off with matches in Sydney and Auckland. As excitement builds, so has criticism that Fifa has fumbled the opportunity to foster long-term commercial interest in women’s sport.
Five more top stories
1. Thailand’s election winner Pita Limjaroenrat has been suspended from parliament and his nomination for prime minister thrown out. The double blow to Pita’s candidacy marks the latest escalation in a tense stand-off between Pita and his Move Forward party and Thailand’s conservative establishment. Here’s more on a crucial moment in Thai politics.
2. Russia has warned it will treat all vessels heading to Ukraine’s ports as military threats, signalling its intent to reimpose a naval blockade on Ukraine. The move sent European and US grain futures soaring and followed Russia’s decision this week to withdraw from last year’s UN-brokered agreement to allow Ukrainian Black Sea grain exports to continue despite the war. Read the full story.
Related: Wagner founder Yevgeny Prigozhin said the paramilitary group has relocated to Belarus “for some time” before leaving to fight in Africa, adding that it may later rejoin Russia’s invasion of Ukraine.
3. India’s fragmented and fractious left-of-centre opposition parties have joined forces with the aim of unseating Narendra Modi’s ruling Bharatiya Janata party in next year’s election. In a rare show of unity, more than two dozen parties joined the alliance, dubbed “INDIA”, or the Indian National Developmental Inclusive Alliance. But analysts said the new alliance would face long odds against the BJP.
4. Chinese online retailer Temu has accused rival Shein of “unlawful exclusionary tactics” as the two fast-fashion companies take their fight for the US market to court. Temu launched an antitrust suit against Shein in a US federal court last week, alleging its entrenched Chinese rival is using unfair tactics in China in an attempt to maintain market dominance in the US.
5. Michael Moritz is leaving Sequoia Capital after almost 40 years leading the Silicon Valley firm’s investments in companies including Google, Yahoo, YouTube and PayPal. The departure of one of the tech industry’s best-known investors represents another shake-up for the US venture capital group following last month’s decision to split off its China and India units. Read more on Moritz’s next move.
The Big Read
After Switzerland joined sanctions against Moscow following Russia’s full-scale invasion of Ukraine, much of the Russian oil trade in Geneva shifted to the Middle East. According to a FT analysis, companies registered in Dubai bought at least 39mn tonnes of Russian oil worth more than $17bn between January and April — about a third of the country’s exports declared to customs during that period. Here’s how Dubai became “the new Geneva” for the Russian oil trade.
We’re also reading . . .
Chart of the day
Goldman Sachs dropped to its lowest quarterly profit in three years, as a costly retreat from consumer banking was compounded by the industry-wide slowdown in deals and trading. Net income for the quarter plunged by almost two-thirds to $1.1bn in the second quarter, down from $2.8bn a year earlier. Take a deeper look at Goldman’s rough quarter and the pressure facing chief executive David Solomon.
Take a break from the news
Greta Gerwig’s Barbie film is a seamless blend of infectious, Day-Glo wit that also peers into the chasm between the have-it-all vision of femininity sold to little girls by the doll’s maker Mattel and the grinding, impossible choices that face many adult women, writes Danny Leigh in his 4-star review.
Additional contributions by Tee Zhuo and Gordon Smith
