Aurelia Butler

Good morning. China’s ambassador to the EU has sent a stark warning to the bloc, saying that any country that curbs business ties with his nation would do so “at their own peril”. Fu Cong claimed the US would “stop at nothing” to disrupt normal relations between the EU and China, adding that a “protectionist tendency” was on the rise in Europe. The ambassador singled out the Netherlands for having “yielded to the pressure of the US” by announcing restrictions on exports to China of its high-end semiconductor-making technology this year. He hinted Beijing could retaliate if needed and urged the EU to continue its drive for “strategic autonomy”.Fu’s comments came after European Commission president Ursula von der Leyen earlier pledged to tighten scrutiny of trade and investment flows in sensitive technological areas in the face of an increasingly assertive China.More on US-China tensions: Speaking at a conference of global political and business leaders, China’s premier Li Qiang has warned against allowing “chaos and conflicts” to erupt in Asia amid soaring tensions with Washington.Here’s what else I’m watching today:China’s overseas listing regulations: Beijing’s new rules for Chinese companies seeking offshore listings come into effect today. (Reuters) China hosts Malaysia’s PM: Malaysia’s Anwar Ibrahim will meet Xi Jinping today on his first visit to China as prime minister. (Al Jazeera) Labour market figures: Japan and the EU will publish labour market updates today.What did you think of today’s FirstFT? Let us know at [email protected]. Thanks for reading.Five more top stories 1. BREAKING: Donald Trump has been indicted following a years-long investigation by Manhattan prosecutors that has led to the first criminal charges against a former American president in the country’s history, according to US media reports. We’ll be updating FT.com with the latest.2. Alibaba will consider ceding control of some of its businesses if they opt to list as part of a break-up into six semi-autonomous units, top executives said, as the Chinese tech group maps out its biggest restructuring in years.3. Ford plans to invest in a $4.5bn battery materials plant in Indonesia alongside a Chinese mining group, the latest gamble by the US carmaker that drawing China into its supply chain for electric vehicles will not backfire in Washington.4. Russia has detained Wall Street Journal reporter Evan Gershkovich on suspicion of spying, the first arrest by its secret service of a foreign journalist since the invasion of Ukraine. The crime carries a sentence of up to 20 years in prison. 5. Ken Griffin’s hedge fund Citadel plans to reopen its Tokyo office later this year, almost a decade and a half after shutting down its Japan operations during the global financial crisis. Citadel’s expansion comes as other investors, including the activist fund Elliott, have been growing their Japan-focused teams.How well did you keep up with the news this week? Take our quiz.News in-depth

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The end of historically low interest rates was billed as good news for banks, but recent crises on both sides of the Atlantic show the reality is more complex, against conventional wisdom. We break down the new threats and challenges at banks as interest rates rise.We’re also reading . . . China’s regulatory shake-up: China has some of the same vulnerabilities in its financial system as the US and Europe, writes George Magnus. ‘Total distrust’: In wartime Russia, teachers, neighbours and even family members are informing on each other in Soviet-style denunciations.And they’re off: FT’s Oliver Roeder used AI to bet on horseracing. He found secretive computer syndicates, billion-dollar bettors and a battle for the future of the sport.Chart of the dayChipmaking is a thirsty business. Taiwan, home to Asia’s biggest semiconductor industry, is bracing itself for another water shortage less than two years after overcoming its worst drought in a century.

Take a break from the newsRoger Federer reunites with friend and comedian Trevor Noah to give an exclusive interview to the FT on the set of the tennis great’s latest film for Switzerland Tourism, in which they share advice on visiting the country, from Appenzell to Zurich, via cold-water swimming, train travel and skiing the Matterhorn — or not.

Video: Roger Federer and Trevor Noah on why you should visit Switzerland | FT Globetrotter

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Europe should reject Washington’s demands to curb trade with Beijing, a senior Chinese diplomat said, warning any country that shredded business ties with his nation would do so “at their own peril”.Fu Cong, China’s ambassador to the EU, claimed the US would “stop at nothing” to disrupt normal relations between the bloc and China, adding that a “protectionist tendency” was on the rise in Europe.“Who in their right mind would abandon such a thriving market as big as China?” Fu told the Financial Times, warning European politicians not to undermine positive business sentiment towards China. “It will only be at their own peril.”The ambassador singled out the Netherlands for having “yielded to the pressure of the US” by announcing restrictions on exports to China of its high-end semiconductor-making technology this year. He hinted Beijing could retaliate depending on the extent of the controls.“We do hope that the European governments and the European politicians can see where their interests lie and then resist the unwarranted pressure from the US,” Fu said, urging the EU to persist in its drive for “strategic autonomy”.Referring to the Netherlands, he added: “They need to be mindful of the fact that China cannot just sit there and see its own interests being trampled like this without taking any actions in response.” European Commission president Ursula von der Leyen: ‘A strong European-China policy relies on strong co-ordination . . . and a willingness to avoid divide and conquer tactics’ © Valeria Mongelli/AFP/Getty ImagesFu was speaking on the same day as Ursula von der Leyen, the European Commission president, vowed to tighten scrutiny of trade and investment flows in sensitive technological areas such as quantum computing and artificial intelligence. Brussels must develop “new defensive tools” as it updates its security policies in the face of an increasingly assertive China, von der Leyen said in a speech. “A strong European-China policy relies on strong co-ordination . . . and a willingness to avoid the divide and conquer tactics that we know we may face.”The US has stepped up efforts to convince allies to harden their approach towards China, as relations between the two economic superpowers sour over Taiwan and Beijing’s support for Russia. Von der Leyen is seeking to steer a distinct line from the US, stressing her goal is not to “decouple” from China but rather “de-risk”. China’s business ties with some European countries remain strong. German companies invested a record €11.5bn in China last year, according to a paper published on Wednesday by the German think-tank Institut der deutschen Wirtschaft. Recent EU proposals to reduce dependence on Chinese imports include improving supplies of critical raw materials and boosting domestic production of green technology. New trade defence tools also empower the EU to retaliate against economic intimidation and curb access for Chinese state-subsidised companies or producers using forced labour. “Many of the measures are actually in violation of World Trade Organization rules,” Fu said, suggesting Beijing would complain formally to the Geneva-based body.The US and its allies accuse China of damaging the global trading system via the use of massive industrial subsidies, restrictions on inward investment and breaches of intellectual property protections. The ratification of an EU-China investment deal stalled in 2021 after Beijing imposed sanctions on members of the European parliament. Fu said he hoped the EU leadership would “muster enough courage and also political force” to give the deal final approval.Asked if China would lift the sanctions to unblock the process, he said Beijing was open to “all solutions, so long as they are based on reciprocity and equality”.The ambassador said it was a mistake for the EU to allow the Ukraine war to dictate its relations with China.“I don’t think it is a rational approach to link the relationship with China solely to the Ukrainian crisis,” he said, adding that Russia’s “legitimate security interests” must be respected: “It is not as black and white as some people think it is.” But he maintained there was “room for negotiation and even for China and the EU to join our hands in promoting peace”. He added that “no possibility is excluded” regarding a potential telephone call or meeting between Chinese president Xi Jinping and Ukrainian president Volodymyr Zelenskyy, noting that senior Chinese officials were in contact with their Ukrainian counterparts.Additional reporting by Patricia Nilsson in Frankfurt More