🔋 Trump & Xi: Rare-Earths Conflict

 ☕️ Good morning, comrades,

Bad news first: Japanese parents are no longer allowed to name their child Pikachu. Until recently, Pokémon names—or even Nike and Greece (seriously?)—were popular baby names in Japan. Those days are officially over.

Meanwhile in China you can literally buy an internship at a bank—whether you’re called Bulbasaur, Elon or Barron. All Mum and Dad have to do is park the equivalent of USD 1.4 million with the bank. Sounds like a brilliant referral scheme!

Numbers

0,30%

Average new-home prices in 100 Chinese cities rose this much in May, hinting that policy support may be kicking in.

7,4 %

India’s economy grew this fast in Jan-Mar 2025, driven by construction and manufacturing—the sharpest rise in a year.

16.670$

Price tag for BYD’s new Seal Sedan, due to launch end-June 2025.

🚀 Benchmarks

Top Bit: Trump & Xi to talk rare-earths stalemate

Just days after fresh accusations from Washington, US President Donald Trump and China’s Xi Jinping are expected to hold a phone call aimed at breaking the deadlock over strategic minerals.

Details

☎️ Leaders’ hotline – Treasury Secretary Scott Bessent says the call could happen “very soon” to unblock tariffs and export licences.

🛑 Alleged breach of deal – Trump accuses Beijing of reneging on promised tariff cuts and easing of export restrictions.

🔗 Supply chains squeezed – Bessent warns withheld minerals are hurting factories in Europe, India and the US; analysts call it a deliberate lever by Beijing.

Why it matters

• Critical minerals such as neodymium and dysprosium are vital for EVs, wind turbines and defence; even brief shortages can shut plants.

• A failed call could trigger fresh tariffs and rattle markets.

• It would be the first leader-level signal in months and may set the tone for talks with the EU as well.

Background
In mid-May both sides agreed in Geneva to a 90-day truce suspending up to 145 % US tariffs and Chinese export bans. Washington now accuses Beijing of “slow-rolling” export licences, while Beijing criticises US chip curbs.

Further Reading: Reuters, Politico

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Head Of The Day

The 30-year-old CEO of tea-chain Chagee became a billionaire after the stock jumped 21 %. Guess he can afford that bank internship.

Market Bit: 👗 Shein Eyes Hong Kong IPO After All

Details

🔄 IPO pivot – After 18 months prepping for London, the fast-fashion giant is shifting listing plans to Hong Kong; London now just a backup (FT).

⚖️ Regulatory snag – Wording on risk factors plus new Trump tariffs on cheap imports make London less attractive.

💸 Valuation hit – Shein’s 2024 profit slid ~40 % to US $1 bn; investors now pencil in a US $30 bn IPO, down from the US $66 bn last round.

Why it matters

• London risks losing the year’s biggest tech float—another blow for the post-Brexit market.

• Shein is a bellwether for geopolitical risk in e-commerce; tariffs and ESG disclosure could squeeze margins.

• A steep valuation haircut would chill sentiment for upcoming Asia consumer IPOs and push capital towards HK/Shanghai.

Further Reading: Financial Times, Reuters

Top Reads

📉Asian factory output fell in May on weak China demand and new US tariffs. Japan’s PMI 49.4, South Korea 47.7; Vietnam and Indonesia also dip below 50. Relief only expected if the trade row eases. More here.

🗳South Korea votes on Tuesday after Yoon Suk Yeol was ousted over martial-law scandal. 44 m voters start at 6 a.m.; campaigns end midnight Seoul time. Winner takes office Wednesday with no transition period. More here.

💹Hong Kong finance chief Paul Chan sticks to 2–3 % GDP target despite 3.1 % Q1 growth, calling the surge an exception and warning of trade-war shocks. More here

Optional Reads

Elon Musk: Social-media storm over possible baby with J-Pop star. More here.

Mongolia: Protests as PM’s family flaunts designer handbags. More here.

North Korea: Mystery balloons deployed to salvage capsized 5,000-t frigate. Read more.

🥠 Fortune Cookie Of The Day

Chinese hikers may soon stop sweating—an AI-powered exoskeleton now “pushes” trekkers up the 26,000 steps of Enshi Canyon. Testers gush: “Feels like my legs are on holiday.”

Send us your own Fortune Cookie and win an asiabits fan pack!

Spotted something funny or noteworthy about Asia? Mail it to [email protected] and we might feature you here.

See you tomorrow,

asiabits.

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