China hits back against Trump’s tariffs

Good morning. In in the present day’s publication:

• China retaliates in opposition to Trump’s tariffs

• Microsoft poaches DeepMind employees behind AI podcast characteristic

• Bangladesh rewrites its previous

Beijing has retaliated in opposition to Donald Trump’s tariffs on imports from China with duties of its personal however restricted their scope in a attainable try and keep away from a full-blown commerce warfare.

China will impose tariffs of between 10 per cent and 15 per cent on US liquefied pure fuel, coal, crude oil and farm gear. Beijing may even impose tariffs on some automotive imports from the US and extra export controls on 5 uncommon metals. The measures will take impact on February 10.

China’s new tariffs goal about $14bn of products, Citigroup analysts stated — lower than 10 per cent of whole imports from the US in 2023, the final yr for which there was full knowledge.

China additionally introduced yesterday it had revived antitrust investigations into US tech giants Google and Nvidia, whereas contemplating a brand new probe in opposition to Intel.

The investigations “could also be a part of the retaliatory measures”, made by Beijing in response to Trump’s new tariffs in opposition to the nation, stated Liu Xu, a researcher on the Nationwide Technique Institute of Tsinghua College. Xu added that the probes might be used as a device in commerce negotiations. Here’s what else we know about China’s moves.

• Extra on Trump’s tariffs: The US president’s crackdown on tariff-free entry for small items may threaten the enterprise fashions of Chinese language ecommerce teams Shein and Temu while benefiting Amazon, analysts stated.

For extra protection of worldwide commerce, join Alan Beattie’s weekly Commerce Secrets and techniques publication here in case you’re a premium subscriber, or upgrade your subscription. Right here’s what else we’re conserving tabs on in the present day:

• Financial knowledge: South Korea and Philippines report January inflation knowledge. Indonesia publishes fourth-quarter GDP.

• Outcomes: Toyota, Nomura, Novo Nordisk, Uber and Disney report earnings.

• China: Monetary markets reopen after the lunar new yr vacation.

• Delhi state legislature elections: Prime Minister Narendra Modi’s Bharatiya Janata occasion is hoping to recapture the capital metropolis, which it has not gained for over 27 years. (Related Press)

Have questions in regards to the Modi authorities’s plans to reinvigorate the Indian economy? Ship them to us and we’ll reply them in a particular weekend version of the publication. Hit reply or e mail firstft@ft.com.

5 extra prime tales

1. Microsoft’s synthetic intelligence head Mustafa Suleyman has poached his former colleagues at Google DeepMind who constructed its common podcast-generating characteristic, because the rival corporations race to construct profitable functions from the cutting-edge know-how. The characteristic, “Audio Overviews”, permits customers to remodel textual content into audio that has the style of an engaging conversational podcast.

2. FBI brokers are suing the Trump administration to forestall it from publicly naming employees concerned in an investigation into the January 6 Capitol assault in 2021 amid an intensifying crackdown in opposition to the president’s perceived enemies. They allege {that a} justice division try and determine these concerned within the probes risked placing them and their households in “immediate danger of retribution”.

3. Alphabet’s revenues undershot estimates within the fourth quarter because the search large’s cloud enterprise grew slower than anticipated. The Google guardian additionally revved up its spending on data centres because it competes with Silicon Valley rivals within the synthetic intelligence race.

4. Apollo International Administration chief govt Marc Rowan says a wave of partnerships between different and large asset managers will shake up Wall Avenue. He stated corporations resembling Apollo may create co-branded funding funds or “massive managed accounts” with conventional asset managers that might widen traders’ possession of unlisted property.

5. Unique: Citigroup will proceed to permit most workers to work remotely at the least two days per week in a transfer that places it out of step with some rivals and the Trump administration. Right here’s why chief govt Jane Fraser described versatile in-office work necessities as a competitive advantage.

Information in-depth

Barely half a yr after Bangladesh’s student-led revolution overthrew Sheikh Hasina’s 15-year rule, the interim authorities led by Nobel laureate Muhammad Yunus is rewriting the nation’s official historical past. Faculty textbooks printed by his authorities have revised the country’s independence narrative and challenged the cult of personalty that was constructed round Sheikh Mujibur Rahman, the late father of Sheikh Hasina. However Yunus’s crew faces a variety of obstacles on this effort to remake the nation.

We’re additionally studying . . . 

• ‘Honest’ algorithms: Merely including a human assessment course of to automated programs doesn’t make tricky trade-offs disappear, writes Sarah O’Connor.

• The Huge Learn: Have America’s industrial giants misplaced their means by measuring success only in financial terms?

• Market Perception: Shifts within the world financial and monetary order are making the idea of the “world south” less effective, writes Mohamed El-Erian.

Chart of the day

Chinese language producers say they may speed up efforts to move production to other countries to avoid US tariffs, after Donald Trump introduced a brand new commerce offensive in opposition to Beijing. Chinese language corporations have already been diversifying their commerce in recent times, and China’s share of US imports has fallen markedly since Trump launched tariffs in his first time period in workplace.

Take a break from the information . . . 

Weight-loss medication resembling Ozempic have curbed the weight problems disaster, however have they killed the enjoyment of meals? Ajesh Patalay explores what a world of tiny appetites means for modern dining.