Xi Jinping declines invitation to visit Brussels for anniversary summit

Good morning. On today’s agenda:

China’s President Xi Jinping has declined an initial invitation to visit Brussels for a summit to mark the 50th anniversary of ties.

Beijing told EU officials that Premier Li Qiang, China’s second-ranked leader, would meet the presidents of the European Council and Commission in Brussels for the summit rather than Xi, people familiar with the matter have said. 

The hosting of EU-China summits traditionally alternates between Brussels and Beijing. The EU believes the importance of this meeting — to commemorate half a century of diplomatic relations — means that China’s president should attend, the people have said. 

Both sides have said talks will continue, but the initial snub has confirmed the view among many in Brussels that China will not add concrete action to its warm words about the need to co-operate in the face of Donald Trump’s assault on the global world order.

Here’s how this move could affect relations between China and the EU.

• Global CEOs meeting: Xi is seeking to hold a meeting with scores of chief executives including Citadel’s Ken Griffin and HSBC’s new CEO Georges Elhedery. The list of invitees is still being negotiated, people familiar with the matter have said, but about 72 global chief executives are on an initial list.

Here’s what else we’re keeping tabs on today:

• Economic data: S&P Global Manufacturing PMI is due for countries across the region including China, India and Japan.

• Global economy: The OECD publishes its Interim Economic Outlook Report.

Five more top stories

1. The US launched a wave of air strikes against Houthi rebels in Yemen. The strikes on Saturday — when at least nine were killed, the Houthi-run health ministry has said — were the most significant military actions taken by Trump since he returned to the White House. The US president also warned Iran to halt its support for the militant group “immediately,” prompting an angry response from Tehran.

2. China’s biggest maker of the laser sensors for self-driving cars is planning its first overseas plant. Speaking to the Financial Times, Hesai’s chief financial officer said the Shanghai-based company is looking to build production lines abroad to “avoid risks related to geopolitics and tariffs”. Hesai drew global attention last year after the US defence department included it on a list of “Chinese military companies”.

3. More than 200 of America’s largest corporate groups have removed mentions of DEI. Of the top 400 companies in the S&P 500 index, 90 per cent that filed a report since Trump’s election have cut at least some references, according to data analysed by the FT.

• US consumers: While many retailers reported solid sales at the end of last year, they warned of slower growth in the future. So far, data suggests shoppers are cutting their spending.

4. A surge in separatist attacks in the Pakistani province of Balochistan — including a hostage crisis last week that involved hundreds of train passengers — has underscored the limits of big investments and economic development in the resource-rich province, analysts warned.

5. Nearly half of South Korean preschoolers now attend “cram” schools. Private education spending is being pushed to record levels as the cost of having children in one of the world’s fastest-ageing countries increases.

The Big Read

Donald Trump’s policymaking — from his unpredictable trade policies to federal government cuts — is raising uncertainty and sapping confidence from investors. It’s a far cry from the prevailing mood among businesses earlier this year. With growing US recession warnings, has the US economy lost its aura of invincibility?

We’re also reading . . . 

• Space rescue: A pair of US astronauts are set to leave space after a new crew arrived at the International Space Station on Sunday. It’s expected to end their nine-month mission that was supposed to last eight days.

• US ties: Trump’s transformation of the US has prompted a radical reconsideration of defence policy that’s particularly challenging for Japan and South Korea, writes our editorial board.

• From Covid to today: With the five-year anniversary of the first lockdown approaching, inflation and market volatility are now facts of financial life.

Chart of the day

“Vanilla” buybacks in Japan have hit successive records in recent years in an effort to keep investors happy. But this year, Japanese companies are pitching reforms. A string of conglomerates like Toyota and Seven & i Holdings sacked chief executives and sold assets in an effort to seek more tangible changes.

Take a break from the news . . . 

Is it time to spice up your normal coffee order? Put down your americano and try some of the newest coffee fixes with extensive ingredients and innovative flavour combinations. Would you try a honeybun latte or a spiced cold brew with cinnamon and chilli? HTSI has more on the kooky caffeine hits.