Indian carmakers in Chinese trouble as rare earths supply runs short

This article is an on-site version of the India Business Briefing newsletter. To receive it in your inbox regularly, sign up if you’re a premium subscriber, or upgrade your subscription here. Good morning. The central bank will announce its rate decision later today. Going by our poll on Tuesday, most of you seem to be expecting a 0.5 percentage point cut. If I were being optimistic I’d agree, but realistically I expect it to be 0.25 — we’ll soon see which is right. In other news: we’ve just passed the six-month…

China scientists put direct quantum communications tech to test in space flight

Advertisement A laser module and a phase encoding device, developed at the Beijing Academy of Quantum Information Sciences, were on board a Yuanxingzhe-1 rocket that reached 2.5km (1.55 miles) during a two-minute vertical flight testing its reusability last Thursday. “The launch mainly tested the robustness of the modules against various environmental stresses encountered during rocket ascent, such as vibration and radiation,” the academy said on its official social media account on Wednesday. The test marked a key step in China’s transition from experimental validation to the construction of a fully…

Trump and Xi break the ice

US President Donald Trump and China’s leader Xi Jinping agreed to launch a new round of high-level trade talks, the European Central Bank cut interest rates by a quarter point and Europe is being flooded with steel diverted from the US because of high tariffs. Plus, the FT’s Aanu Adeoye explains how a Russia-backed junta leader in Burkina Faso became an icon across Africa. Mentioned in this podcast: Donald Trump and Xi Jinping agree to launch new round of trade talks Christine Lagarde signals ECB rate-cutting ‘nearly concluded’ ‘The cult…

‘Total discrimination’: Chinese students facing US visa ban say their lives are in limbo

Chinese students in the United States are questioning their future in the country after the state department announced last week that it would “aggressively” revoke visas for Chinese students and enhance scrutiny of future applications from China and Hong Kong. Chinese students hoping to study at Harvard, the US’s oldest and wealthiest university, are under particular pressure after the Trump administration announced on Wednesday that it was banning the school from enrolling new foreign students. The presidential proclamation cited Harvard’s links with China as a particular cause for concern. For…

Any respite for Japan’s bonds is likely to be short-term

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. The writer is the Apac developed markets rates strategist at Société Générale The attention of global investors is turning more to Japanese bond markets for good reason. The fragile supply-demand imbalance for longer-dated bonds in Japan has been broken by a slowdown in domestic investor demand with 30-year yields briefly touching record highs in late May. With yields becoming more attractive, there’s been a return of the narrative that Japanese…

No US tariffs on ‘unavailable natural resources’: commerce chief

US Commerce Secretary Howard Lutnick on Thursday said Washington would refrain from imposing tariffs on natural resources the country does not hold in abundance amid tough questioning by House lawmakers about American consumers facing rising prices. Advertisement “In our trade deals, our expectation is … we will not have tariffs on unavailable natural resources, but we will have market access for our farmers and our ranchers,” said Lutnick in testimony at a budget hearing of the House Appropriations Committee. Pressed by both US congresswoman Grace Meng of New York about…

Trump China tariff policy ill-suited to supply chain problems, US panel told

US President Donald Trump’s tariff policy is proving ill-suited, and even counterproductive, for the US supply chain in dealing with China’s expanding global manufacturing dominance, witnesses said in a government hearing in Washington Thursday. Advertisement Testifying before the US-China Economic and Security Review Commission, which monitors national security implications of bilateral trade and economic relations, they called for an increase in comprehensive and structural responses, including rebuilding US industrial capacity in such sectors as defense and chips, and working to ensure China is not part of crucial supply chains. Emerging…

With 50 years of history, Manila and Beijing should do better diplomacy

June 9 marks the 50th anniversary of Philippines-China relations, ties steeped in history but marred by friction in recent years. Sadly, an overemphasis on the intractable sea dispute has polluted broader connections, stunting economic cooperation and stigmatising people-to-people exchanges. This is irrational and unproductive. Advertisement For Manila to make the sea row front and centre of ties is a tragedy of its foreign policy. For China to see its smaller neighbour as a mere pawn in its great power competition with Washington is a recipe for misunderstanding; it lets down…

‘At least we’re not out of business’: Small companies in the Trump tariff era

In 2017, tired of supporting other people’s entrepreneurial dreams and watching e-commerce take off, Matt Rollens started Dragon Glassware in his garage with US$10,000 from savings and a small inheritance. A tea drinker, his first idea was a glass vacuum flask. But the prototype fell short, so he settled on drinking glasses as the US microbrewery craze exploded. Advertisement Over the next eight years, he built ties with skilled Chinese factories and expanded into licensed Barbie and Wicked drinkware as annual revenue grew tenfold to US$5 million. The future looked…

US Senate panel passes Taiwan, mainland China overseas military growth measures

The US Senate Foreign Relations Committee approved a slate of China-focused measures on Thursday, including bipartisan bills to counter Beijing’s overseas military expansion and bolster Taiwan’s role in global finance while advancing the nomination of a former ambassador to lead US diplomacy in East Asia. Advertisement The Counter Act of 2025, co-authored by Senators Chris Coons, Democrat of Delaware, and Pete Ricketts, Republican of Nebraska, calls on the US government to develop a strategy to respond to the People’s Republic of China’s efforts to establish military bases overseas. The bill…