Good morning. China’s foreign minister has condemned EU proposals to impose sanctions on Chinese companies for supporting Russia’s war machine. Qin Gang, speaking in Berlin, vowed to react “strictly and firmly” to defend China’s businesses.
The new sanctions package, seen by the Financial Times, includes eight Chinese businesses accused of selling equipment that could be used in weapons. The passing of the proposals is subject to the unanimous approval of the EU’s member states, which are expected discuss the measures this week.
Qin said China did not deliver any weapons into crisis regions and had laws regulating the export of dual-use goods.
“There is a normal exchange and co-operation between Chinese and Russian companies . . . [this] must not be disrupted.” he said.
Tensions between China and the west: Canada has expelled a Chinese diplomat for allegedly targeting a Canadian politician, in the latest example of Ottawa’s harsher tone towards Beijing.
Here’s what else I’m keeping tabs on today:
Nato meeting: Defence chiefs will meet in Brussels.
Earnings: It’s a big day for Japanese companies. Toyota, SoftBank, Panasonic, Nippon Steel and more report today.
US inflation: April consumer price index inflation rate data are set to be released.
Five more top stories
1. Pakistan’s former prime minister Imran Khan was arrested by the country’s anti-corruption force yesterday, sparking fresh protests by his supporters in an already volatile political climate. As protests began spreading, the unrest prompted Pakistan’s government to impose communication restrictions. Read the full story.
2. Donald Trump has been found liable for the sexual abuse of a journalist in a Manhattan department store in the 1990s, in a significant legal defeat for the former US president as he mounts a third bid for the White House. The jury awarded plaintiff E Jean Carroll, a former advice columnist and TV presenter, a total of $5mn in damages.
3. Indonesia is officially the world’s second-largest cobalt supplier, contributing to a sharp fall in the price of the battery metal and adding to western anxieties about Beijing’s dominance across the electric car supply chain. Here’s what the shift means for global industry.
4. US politicians have rejected calls for a short-term solution to the US debt limit crisis, saying there was no alternative to a deal in the coming weeks to avert a damaging default on America’s bonds. The comments from Democrats and Republicans came ahead of a high-stakes gathering at the White House to discuss the fiscal stand-off. This is what you should know about the meeting.
5. Chinese imports posted its biggest contraction in a year last month, while exports expanded at a slower pace than expected, casting doubt over the pace of the country’s economic recovery after three years of pandemic restrictions. Imports fell 7.9 per cent year on year in April, a far deeper decline than analysts had expected.
The Big Read
After 21 years in power, Recep Tayyip Erdoğan, Turkey’s strongman president, faces his greatest challenge yet: a united opposition determined to change the course of the nation. Can his opponent, the soft-spoken retired bureaucrat Kemal Kılıçdaroğlu, defeat Erdoğan?
We’re also reading and listening to . . .
Political earthquake: With an ongoing “battle between autocracy and democracy” in south-east Asia, Thailand’s upcoming election will have far reaching implications for the region.
WFH: Hybrid work seems to have improved working lives — and not just for the elite. Sign up for our Working It newsletter for more on the new world of work.
Behind the Money 🎧: Environmental, social and governance standards have seen some backlash lately. In this podcast, Gillian Tett explains how ESG is changing the corporate boardroom.
Chart of the day
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In 1900 the UK had 3.3.mn horses to provide pulling power, transport and calvary. Now they are an outmoded technology. Does the same fate await humans? Displaced by machines that are not just stronger and more dexterous but more intelligent, even more creative? asks Martin Wolf. A new study, suggests that globally 18 per cent of work could be automated by artificial intelligence.
Take a break from the news
In the central African rainforest, forest elephants emerge from the jungle to congregate in greater numbers than anywhere else on earth. Don’t miss FT’s David Pilling reflection on a one-of-a-kind journey to Sangha Lodge, a jungle sanctuary.
Additional contributions by Gordon Smith and Grace Ramos.
Source: Economy - ft.com
