Day: October 27, 2025

China should step up borrowing to boost domestic demand, economist says

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China’s central government should borrow more to lift domestic demand through supportive monetary and fiscal policy, a Chinese economist has urged. Advertisement “If I can make a recommendation, what I think we could also do is to put together a more aggressive macroeconomic policy using central government leverage or adding central government leverage,” Huang Yiping, a professor at Peking University and dean of its National School of Development, said at the Bund Summit in Shanghai on Saturday. The potential injected liquidity can be used to repair the balance sheets of…

South Korea grapples with surge in anti-China sentiment as Xi Jinping prepares to fly in

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Thousands of protesters flooded central Seoul on Saturday, waving Korean and American flags, Maga hats, and banners honouring slain rightwing activist Charlie Kirk. They held placards reading “Korea for Koreans” as chants of “China out” and “send the communists away” blended with an anti-Chinese racial slur. These rallies mark an escalation in anti-China sentiment that comes at a supremely awkward time for South Korea, just days before it is due to host Chinese president Xi Jinping in the south-eastern city of Gyeongju for the Apec summit, where he is set…

India and China resume direct flights as ties improve

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Direct flights between India and China have resumed as relations between the countries appear to be thawing. IndiGo flight 6E 1703 from Kolkata landed in the southern Chinese city of Guangzhou on Monday, carrying about 180 passengers. Flights between the two countries were first suspended during the Covid pandemic in early 2020 and did not restart after a deadly clash in a disputed Himalayan border area escalated tensions. But the two countries have been steadily rebuilding relations, and last year they reached a landmark agreement on border patrols. The Indian…

US Navy helicopter and warplane crash into South China Sea on same day

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A US Navy fighter and a helicopter crashed into the South China Sea in separate incidents while operating off an aircraft carrier on Sunday. Advertisement A Sea Hawk helicopter, assigned to the Helicopter Maritime Strike Squadron 73, went down while conducting routine operations from the USS Nimitz, the US Pacific Fleet said. Half an hour later, an F/A-18F Super Hornet from Strike Fighter Squadron 22, operating from the same carrier, also crashed. The US Navy did not give the location of the crashes. It said that all five personnel on…

Chinese drugmakers shift from copycats to global innovators

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Chinese drugmakers have struck a record number of deals this year to sell their assets overseas, sending biotech stocks surging as investors bet the country will become a driving force in global drug discovery. There have been 93 overseas licensing deals in the first eight months of 2025, worth a combined $85bn, according to Chinese data provider PharmCube — with domestic companies selling the international rights to homegrown drugs. The total value of deals is on track to hit its sixth consecutive annual record, underscoring the speed at which the…

The stage is set for high-stakes Trump-Xi meeting

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US President Donald Trump is in Asia this week ahead of high-stakes trade talks with Chinese President Xi Jinping. Plus, the UK chancellor is pushing for her own trade deal in the Gulf, and the US Federal Reserve is heading into its next meeting without some important economic data. Mentioned in this podcast: ‘Positive framework’ agreed for Trump-Xi summit, says Scott Bessent UK chancellor to hold Gulf trade talks in push for pro-growth policies US shutdown obscures economic outlook as Fed plans new rate cut Markets brace as Argentines go…

Global stocks rally on US-China trade optimism

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Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Global markets have rallied on hopes that Donald Trump and Xi Jinping will agree to extend a trade truce during a high-stakes meeting in South Korea this week. Japan’s Nikkei 225 index surged past 50,000 for the first time in its history on Monday, while South Korea’s Kospi climbed more than 2 per cent to a record high. Futures for the S&P 500 and Nasdaq Composite rose 0.7 per cent…