China Signals US Talks Openness, Berkshire’s Big Shift & Key Global Market Moves

Here’s a rundown of the crucial market-moving news you might have missed, covering everything from potential US-China trade talks to major shifts in global markets and the Chinese tech landscape.

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China’s Economic Pulse & Policy Shifts

Xi Jinping Focuses on the “15th Five-Year Plan”

China’s top leader, Xi Jinping (习近平), recently chaired a key symposium in Shanghai.

The focus? Strategizing for the upcoming “15th Five-Year Plan” period.

With the “14th Five-Year Plan” wrapping up this year, the leadership is already looking ahead, adapting to new situations and planning the next phase of China’s economic and social development.

This signals a proactive approach to long-term economic management amidst global uncertainties.

PBOC Boosts Support for SME Financing via Supply Chains

The People’s Bank of China (Zhongguo Renmin Yinhang 中国人民银行), along with several other major regulatory bodies, issued new rules for supply chain finance.

Effective June 15, 2025, the “Notice Regarding Regulating Supply Chain Finance Business and Guiding Supply Chain Information Service Institutions to Better Serve SME Financing” aims to:

• Strengthen regulation of supply chain finance.
• Improve financial services for the real economy, especially Small and Medium-sized Enterprises (SMEs).
• Prevent potential financial risks associated with these activities.

This move underscores the focus on bolstering the backbone of the Chinese economy – its smaller businesses – by improving their access to capital through supply chain mechanisms.

US-China Dynamics: Trade Talk Signals & Tensions

US Signals Desire for Trade Talks; China Responds Cautiously

High-level U.S. officials have publicly expressed willingness to discuss tariff issues with China.

Messages have also been sent through private channels indicating a hope to restart negotiations.

China’s official response? They are “currently evaluating” the situation.

Their stance remains firm: “If you want to fight, we will fight to the end; if you want to talk, the door is open.”

However, China insists the U.S. must show sincerity, correct its past actions (like unilaterally imposed tariffs), and take concrete steps for talks to proceed.

This development suggests a potential, albeit tentative, shift in the ongoing trade friction.

Contentious Trade Investigations & Tariff Threats Continue

Despite talk signals, trade tensions persist.

China raised concerns at the World Trade Organization (WTO) regarding a U.S. countervailing duty (CVD) investigation into crystalline silicon photovoltaic (PV) cells from Southeast Asian nations (Malaysia, Vietnam, Thailand, Cambodia).

China argues the U.S. exceeded its jurisdiction, imposing massive duties (up to 3403.96% on Cambodian products) and undermining WTO rules.

Separately, former U.S. President Trump (Telangpu 特朗普) stated he authorized steps to impose a 100% import tariff on all films produced abroad entering the U.S., citing concerns about the domestic film industry.

These actions highlight the complex and often contradictory nature of current US trade policy discussions.

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Global Market Movers: Berkshire, US Data & Oil Shocks

Berkshire Hathaway’s Annual Meeting & Leadership Transition

The iconic Berkshire Hathaway (Boke Xier Hasȧwei 伯克希尔哈撒韦) shareholder meeting took place, often dubbed the “Woodstock for Capitalists.”

A major highlight: Warren Buffett (Bafeite 巴菲特) announced his intention to formally propose handing over the CEO reins to his successor, Greg Abel (Geleige Abeier 格雷格·阿贝尔), by year-end.

This marks a significant transition for the legendary investment conglomerate.

Mixed Signals from US Economic Data

The U.S. economy showed some surprising, and potentially worrying, signs.

First-quarter GDP growth came in at -0.3% annualized (initial estimate), the first contraction since Q2 2022 and lower than the expected -0.2%.

Factors cited include a surge in imports ahead of potential tariff actions and slower consumer spending.

Conversely, the April non-farm payrolls report significantly beat expectations, adding 177,000 jobs versus the estimated 138,000.

The unemployment rate held steady at 4.2%, matching forecasts.

This mixed data presents a confusing picture for investors and policymakers navigating inflation and growth concerns.

International Oil Prices Dip as OPEC+ Plans Production Increase

Oil markets reacted to news from the Organization of the Petroleum Exporting Countries (OPEC 欧佩克) and its allies (OPEC+).

Eight key producers decided to increase output by 411,000 barrels per day starting in June.

This marks the second consecutive month of larger-than-expected production increases, potentially easing supply tightness felt previously due to voluntary cuts.

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Financial Markets Update: Hong Kong Stocks Rally & Regulatory News

Hong Kong Tech Stocks Surge in Early May

The Hong Kong stock market started May on a high note.

The Hang Seng Index rose 1.74%, while the tech-heavy Hang Seng Tech Index jumped an impressive 3.08%.

Major tech players saw significant gains:

• Xiaomi Group (Xiaomi 小米): +6%
• Alibaba (Alibaba 阿里巴巴): +3.8%
• Tencent (Tengxun 腾讯): +2.56%
• Kingsoft Cloud (Jinshan Yun 金山云): +4%

New energy vehicle stocks like Leapmotor (Lingpao Qiche 零跑汽车) (+7%) and CXO concept stocks like WuXi AppTec (Yaoming Kangde 药明康德) (+7%) also performed strongly.

RMB Strengthens Significantly

The offshore Renminbi (RMB) experienced a notable surge, climbing nearly 900 points against the US dollar.

Analysts attribute this rally to several factors:

• Strong Holiday Data: Record-breaking May Day holiday travel hinted at robust economic momentum.
• Trade Talk Hopes: Positive signals regarding potential Sino-U.S. trade consultations emerged.
• Safe-Haven Flows: Increased allocation to RMB assets by investors seeking stability.
• Dollar Weakness: A general downtrend in the US Dollar Index likely encouraged foreign exchange settlements into RMB.

CSRC Vice Chairman Investigated

In regulatory news, Wang Jianjun (Wang Jianjun 王建军), Vice Chairman of the China Securities Regulatory Commission (CSRC), is under investigation.

The Central Commission for Discipline Inspection and the National Supervisory Commission announced the probe into suspected “serious violations of discipline and law.”

This follows other recent actions within the CSRC system, signaling continued anti-corruption efforts in the financial sector.

Shenzhen Stock Exchange Tweaks ChiNext Index Rules

The Shenzhen Stock Exchange (Shenzhen Zhengquan Jiaoyisuo 深圳证券交易所) updated the methodology for its ChiNext Index, a key benchmark for innovative growth companies.

The key changes include:

1. ESG Screening: Excluding stocks with low ESG ratings (below B) to reduce risks associated with poor environmental, social, and governance practices.
2. Weight Cap: Limiting the weight of any single stock to 20% during regular adjustments to prevent oversized influence from individual companies.

These adjustments aim to enhance the index’s representativeness and function as a reliable market benchmark for investors.

Industry Focus: Satellite Tech, Rare Earths & Ukraine Minerals

China Regulates Direct Satellite Connection for Devices

Seven governmental departments, including the Cyberspace Administration of China, jointly issued new regulations for terminal equipment directly connecting to satellite services.

Effective June 1, 2025, the “Administrative Regulations on Terminal Equipment Direct Connection to Satellite Services” aim to:

• Promote and regulate the healthy development of this burgeoning technology.
• Safeguard national security and public interest.
• Protect user rights.

This indicates China’s move to establish a clear framework for the growing satellite communication sector.

Rare Earth Prices Skyrocket Following Export Controls

China’s previous announcement of export controls on certain medium and heavy rare earth elements has sent prices soaring.

Within weeks, key rare earth metals hit record highs:

• Dysprosium prices (European) tripled since early April to $850/kg.
• Terbium prices surged from $965/kg to $3,000/kg, an increase of over 210%.

This dramatic price action highlights the critical role China plays in the global rare earth supply chain and the impact of its policy decisions.

Ukraine and US Sign Minerals Agreement

Following an agreement between Ukrainian President Volodymyr Zelensky (Zelian Siji 泽连斯基) and former US President Donald Trump (Telangpu 特朗普), Ukraine’s First Deputy Prime Minister Yulia Svyrydenko signed an agreement with U.S. Treasury official Scott Besant (Sikete Beisente 斯科特·贝森特).

Termed the “Agreement on the Establishment of the U.S.-Ukraine Reconstruction Investment Fund,” it appears to be what was previously referred to as the “U.S.-Ukraine Minerals Agreement.”

Details remain forthcoming, but it points towards U.S. involvement in Ukraine’s resource sector as part of reconstruction efforts.

Company Deep Dives: Apple, Berkshire, Cambricon & More

Berkshire Hathaway Q1 Earnings Dip

Alongside the shareholder meeting news, Berkshire Hathaway (Boke Xier Hasȧwei 伯克希尔哈撒韦) reported its first-quarter financials.

Net profit came in at $4.603 billion USD, a significant 64% decrease year-over-year from $12.702 billion USD.

Revenue was relatively flat at $89.725 billion USD compared to $89.869 billion USD last year.

A key factor was a net investment loss of $5.038 billion USD in Q1, compared to a $1.48 billion USD profit in the same period last year.

Apple Beats Expectations, Announces Huge Buyback

Apple (Pingguo 苹果) released its fiscal second-quarter 2025 results.

Both revenue and profit for the quarter ending in March exceeded Wall Street analyst expectations.

However, the company warned that potential tariffs could increase its costs.

In a move likely to please investors, Apple’s board also approved a massive $100 billion USD stock repurchase program.

Cambricon Plans Major Funding Round for AI Chips

Chinese AI chip company Cambricon Technologies (Hanwuji 寒武纪) announced plans for a private placement.

The company aims to raise up to ¥4.98 billion RMB (approximately $701 million USD).

The funds are earmarked for developing chip and software platforms specifically targeting large AI models, along with supplementing working capital.

This signals continued heavy investment in China’s domestic AI hardware capabilities.

National IC Fund Trims Stake in Longsys

Longsys (Jiangbolong 江波龙), a memory chip company, announced that a major shareholder, the National Integrated Circuit Industry Investment Fund (Guojia Jicheng Dianlu Chanye Touzi Jijin 国家集成电路产业投资基金), plans to reduce its stake.

Known as the “Big Fund,” it intends to sell up to 1.00% of Longsys’ total share capital (4,159,815 shares) between May 27 and August 26, 2025.

The stated reason is “its own operational management needs.” This move is watched closely as the Big Fund is a key state-backed vehicle driving China’s semiconductor self-sufficiency push.

Stay tuned for more updates on China’s economy and shifting global market dynamics.

FAQs

Is the US genuinely seeking trade talks with China?

The U.S. has sent signals publicly and privately about wanting to discuss tariffs. China acknowledges these messages but is currently “evaluating” and demands “sincerity” and corrective actions from the U.S. before committing. It’s a tentative situation, not a guaranteed negotiation yet.

What does the US GDP contraction mean?

The -0.3% annualized GDP drop in Q1 2025, the first since 2022, suggests a potential economic slowdown. Factors like high imports (possibly anticipating tariffs) and weaker consumer spending contributed. However, strong job growth complicates the picture, indicating mixed economic signals.

Why are rare earth prices spiking so dramatically?

China recently announced export controls on certain types of rare earths. Since China dominates the global supply, this move significantly tightened the market, causing prices for elements like Dysprosium and Terbium to surge over 210% in some cases, highlighting global reliance on Chinese supply.

Who is Greg Abel, Berkshire Hathaway’s next CEO?

Greg Abel has been long considered Warren Buffett’s heir apparent. He currently oversees all of Berkshire Hathaway’s non-insurance businesses, including major energy and railroad operations (BNSF Railway, Berkshire Hathaway Energy). He has been a Vice Chairman at Berkshire since 2018.

What’s the significance of the ChiNext Index methodology change?

The Shenzhen Stock Exchange is making the ChiNext Index (focused on growth/innovation stocks) more robust. Adding ESG screening removes companies with higher non-financial risks. Capping individual stock weights at 20% prevents giants from overly dominating the index’s performance, making it a potentially more stable and representative benchmark.

References:

• Eastmoney Choice Data: Holiday News Summary: U.S. Initiates Contact with China Seeking Talks, China Responds (Original Source)
• Reuters: China reviewing US signals about holding talks, Vice Commerce Minister says (Example context, find latest relevant)
• Berkshire Hathaway Inc. – Annual & Interim Reports (Official Source for Earnings)
• Nikkei Asia: China’s Wang Yi says door always open for dialogue with U.S. (Example context, find latest relevant)