For now, Washington seems content to keep things steady with Beijing.

Treasury Secretary Scott Bessent says the US is “very happy” with the current tariff setup, calling it a system that’s working well and noting that China as the biggest source of tariff revenue. It’s a sign the Trump administration doesn’t want to rock the boat before the trade truce expires in November — and could be paving the way for a meeting between President Donald Trump and Chinese leader Xi Jinping in the meantime.

That calm, though, doesn’t tell the whole story. Farmers are warning of serious pain, with US soybean growers saying they’re on the brink of a “trade and financial precipice." At the same time, the administration is preparing to ramp up scrutiny of Chinese steel, copper, lithium and other imports to enforce a US ban on goods allegedly made with forced labor in Xinjiang. That could easily reignite tensions, even as the White House tries to keep the tone friendly.

The trade-off for Washington is clear. Trump's tariffs bring in money that helps ease the fiscal strain from his tax cuts — a point S&P Global Ratings has raised — but they’re also hitting politically sensitive industries at home and adding friction with Beijing. So while stability may be the message, the relationship is still walking a fine line between calm and conflict. —Jasmine Ng

What You Need to Know Today

Indian Prime Minister Narendra Modi welcomed warmer ties with China, saying he looks forward to his first visit there in seven years to meet Xi. This comes as Bessent escalated criticism of the South Asian nation for “profiteering” off Russian oil purchases, and even defended the Trump administration’s lack of secondary tariffs on China, which buys more crude from Moscow.

Modi, left, greets Li Qiang, China's premier, at the BRICS Summit in Rio de Janeiro. Photographer: Dado Galdieri/Bloomberg

Trump met with the CEOs of the world’s two biggest mining companies to discuss a copper project that could supply the US with a quarter of its demand for decades to come. Rio Tinto’s Jakob Stausholm; his incoming replacement, Simon Trott; and counterpart at BHP, Mike Henry, met the US leader to discuss the Resolution project in Arizona. The Trump administration has made the revival of US metals and minerals production a key priority, including copper, a commodity vital for the energy transition as well as conventional uses in pipes. 

Shares of Chinese toy maker Pop Mart jumped to a record after founder and CEO Wang Ning said the company could easily surpass its annual sales projection and announced plans to launch a new mini Labubu doll. Wang told an earnings call that even he’s been unable to accurately predict earnings growth. Labubus’ popularity is fueled in part by the brand’s blind-box packaging, a draw for customers curious about what’s inside.

A statue of Pop Mart's character Labubu at one of the company's stores in Beijing. Photographer: Na Bian/Bloomberg

Singapore’s Temasek Holdings is mulling one of its biggest shake-ups in years, with plans to reorganize the firm into three investment vehicles to boost returns and efficiency, Bloomberg News reported. Under the proposal still being discussed, one arm would focus on Temasek’s biggest domestic holdings, another would oversee largely foreign investments, and a third would include all of Temasek’s fund investments, according to people familiar with the matter. The move remains fluid and subject to change.

Billionaire Ken Griffin’s Citadel Securities has hired an options trader in India and plans to expand its team in the country, according to people familiar with the matter. The firm tapped Prajual Maheshwari from high-frequency trading firm Aakraya Research in Mumbai to join its Gurugram office. The move comes as global trading firms weigh expansion in India amid a regulatory crackdown on Jane Street and curbs aimed at cooling an options frenzy that caused heavy retail investor losses.

Flush with cash after a record legal win against Qantas, union boss Michael Kaine is warning other big businesses: Break Australia’s employment laws at your peril. The Federal Court fined Qantas A$90 million ($58 million) for illegally sacking nearly 2,000 workers during the pandemic, with more than half awarded to the Transport Workers’ Union. Kaine says the payout will fund tougher action against companies that underpay staff, abuse workers’ rights or fail to maintain proper payroll systems.

Game Science, the Tencent-backed startup behind last year’s biggest new role-playing games, is developing a successor in the series, Black Myth: Zhong Kui. The project is still “little more than an empty folder at this stage,” the company said, but it wanted to update fans after Wukong’s blockbuster debut. That game became China’s biggest cultural export in years, boosting the popularity of action RPGs and even spurring a surge in tourism to historic sites  it showcased.

An advertisement for the Black Myth: Wukong PC game at Beijing Capital International Airport. Bloomberg

What You’ll Need to Know Tomorrow

For Your Commute

Commuters in Singapore got a shock when fares on Grab, the country’s most popular ride-hailing app, suddenly spiked into the thousands. For a short trip across the city, riders were shown bills of $1,000 or more — roughly a hundred times the usual cost. Users in neighboring Malaysia also reported similar increases. The company blamed a temporary display glitch and assured customers the app was back to normal. Backed by Uber, Grab dominates ride-hailing in Southeast Asia. The episode was brief, but it offered a reminder of how dependent millions of commuters are on a handful of apps.

Signages at Grab’s headquarters in Singapore. Photographer: Ore Huiying/Bloomberg

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