Business Brief (Sept. 1): Xi Meets Modi, Calling for Stronger Strategic Communication

The following summary provides a comprehensive overview of the main business and economic stories from the past 24 hours, along with notable market events, as reported in the original text.

The coverage begins with President Xi Jinping meeting Indian Prime Minister Narendra Modi at the Shanghai Cooperation Organization summit in Tianjin. Xi emphasized the importance of strategic bilateral relations and advised that border disputes should not define the broader relationship between China and India. This underscores ongoing efforts to stabilize diplomatic ties amidst ongoing border tensions. [para. 3]

The United States has escalated its restrictions on semiconductor exports to China, revoking “validated end-user” status for three firms, including Samsung’s plant in China. Affected companies must now seek new licenses to operate within 120 days, but expansions or upgrades are prohibited. This action prompted sharp criticism from China’s Ministry of Commerce, which called for the policy to be reversed to protect global supply chains. [para. 4]

China’s official economic metrics for August showed a modest recovery: manufacturing PMI rose slightly to 49.4, non-manufacturing PMI increased to 50.3, and the composite index reached 50.5. While supply expanded and demand showed marginal growth, profitability remained under pressure due to rising raw material prices. [para. 5]

At a seminar, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), reaffirmed the authority’s commitment to deepening capital market reforms and enhancing openness. Wu stressed the importance of long-term, value-based investment strategies in order to make Chinese markets more appealing to global investors. [para. 6]

Several regions in China, including Guangzhou, Qinghai, and Guizhou, have suspended auto replacement subsidy programs as part of policy adjustments designed to optimize funding, prevent abuse, and balance market conditions. [para. 7]

China’s National Development and Reform Commission (NDRC) emphasized the need to avoid disorderly competition in the implementation of the “AI+” initiative. The three-phase plan aims for widespread AI application by 2027, positioning the intelligent economy as a significant growth engine within five years, and fully transitioning to an intelligent society within a decade. [para. 8]

Chinese display panel makers reported robust first-half financial results. TCL CSOT saw revenue grow by 14.4% year-over-year and net profit surged 51% to 2.6 billion yuan, while BOE Technology’s revenue rose 8.5% and net profit increased by 42.2% to nearly 3.3 billion yuan. [para. 9]

Among major white goods producers, Midea Group and Haier Smart Home logged increases in both revenue and net profit, while Gree Electric lagged, reporting a revenue decline and much slower profit growth. [para. 10]

In the automotive sector, BYD disclosed a 23.3% year-on-year revenue increase to 371.3 billion yuan, with net profit up 13.8%. R&D expenditures rose over 50% to 29.6 billion yuan. Meanwhile, Seres Group’s first-half revenue declined by 4.6%, but its net profit surged by 81%. [para. 11][para. 12]

Internationally, Indonesian President Prabowo Subianto canceled his state visit to China amid violent protests over lawmakers’ pay. The unrest led to safety alerts for Chinese nationals in Indonesia. [para. 13]

Upcoming events include the closure of U.S. stock markets for Labor Day and Canada lifting several tariffs on U.S. goods. [para. 14][para. 15]

Other highlights: Central Huijin notably increased its holdings in ETFs; WeChat is further regulating AI content; policy support for brain-computer interface tech is growing. Major companies like SMIC, Kweichow Moutai, Huawei, Alibaba, and TSMC reported diverse financial results and strategic updates. Finally, a U.S. court ruled that Trump-era tariffs were an overreach of authority, but they remain pending Supreme Court review. [para. 16][para. 17][para. 18][para. 19][para. 20][para. 21]