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US appeals court lets Trump cut billions in foreign aid

Visitors walk up a stair during the opening of the restoration project at the historic Bimaristan Al-Muayyad Sheikh, one of the oldest hospitals following extensive renovations carried out in partnership between Egypt’s Tourism and Antiquities Ministry and the United States Agency for International Development (USAID) in Old Cairo, Egypt Aug. 18, 2024. — REUTERS

WASHINGTON — A federal appeals court on Wednesday lifted an injunction that required the US State department to continue making foreign aid payments, handing a victory to President Donald J. Trump.

In a 2-1 decision, a three-judge panel of the US Court of Appeals for the District of Columbia Circuit said a lower court erred by ordering the Trump administration to restore foreign assistance payments previously approved by Congress.

Mr. Trump imposed a 90-day pause on all foreign aid on Jan. 20, the same day he was inaugurated for a second term in the White House. His executive order was followed by aggressive moves to gut the US Agency of International Development, the main US foreign aid agency, including by placing much of its staff on leave and exploring bringing the formerly independent agency under the State department.

Two nonprofit groups that receive federal funding, AIDS Vaccine Advocacy Coalition and Journalism Development Network, brought litigation alleging Mr. Trump’s funding freeze was unlawful.

US District Judge Amir Ali, an appointee of former President Joseph R. Biden, ordered the Trump administration to pay nearly $2 billion in outstanding aid to its humanitarian partners worldwide.

Writing for the two-judge majority, Circuit Judge Karen Henderson said the nonprofit groups “lack a cause of action to press their claims” and therefore failed to satisfy the requirements for an injunction.

Ms. Henderson wrote that only the US Government Accountability Office, a watchdog agency, could challenge the President’s efforts to withhold foreign aid funding.

Ms. Henderson, who was appointed to the appeals court by President George HW Bush, said the court was not addressing the question of whether Mr. Trump’s foreign aid freeze violated the US Constitution by infringing on the spending power of Congress.

Ms. Henderson’s opinion was joined by Circuit Judge Gregory Katsas, a Trump appointee.

Circuit Judge Florence Pan, a Biden appointee, wrote in a dissenting opinion that her colleagues were allowing the Trump administration to disregard federal law and the separation of powers outlined in the Constitution.

“The court’s acquiescence in and facilitation of the Executive’s unlawful behavior derails the carefully crafted system of checked and balanced power that serves as the greatest security against tyranny — the accumulation of excessive authority in a single Branch,” Ms. Pan wrote.

A spokesperson for the Office of Management and Budget, the White House’s budget office, said the ruling stops “radical left dark money groups” from “maliciously interfering with the President’s ability to spend responsibly and to administer foreign aid in a lawful manner in alignment with his America First policies.” — Reuters

Chinese hotels turn to hawking food as guests tighten belts

PEOPLE queue at a setup of stalls selling food to passersby next to Beiyuan Grand Hotel in Beijing, China, Aug. 11. — REUTERS/MAXIM SHEMETOV

SINGAPORE/BEIJING — Every evening, staff at Beiyuan Grand Hotel in Beijing set up street stalls selling freshly-cooked gourmet dishes trying to make up for falling revenue indoors as Chinese consumers and firms cut spending on travel, conferences and banquets.

“These days, it’s not that people will come just because you lower prices or offer discounts — they simply don’t come at all,” said Anwen Xu, its sales director, explaining the need to find new income streams.

Beiyuan is among at least 15 high-end hotels nationwide hawking food outside in recent weeks, according to their social media and Chinese news sites. Their sales had been hit by weaker consumer demand, cuts to corporate and official travel budgets and a lack of banquet reservations, staff said.

Ms. Xu said Beijing’s moves earlier this year to reinforce austerity and discipline among public sector workers and party members, including bans on dining out in large groups and curbs on alcohol consumption, had also hurt business.

Analysts say the hotel hawkers are another sign that deflationary pressures risk becoming entrenched in the world’s second-largest economy, whose growth leans more on manufacturing and exports than consumption.

Consumer prices were flat year-on-year in July.

“These high-end dining establishments, especially five-star hotels, are having to make strategic adjustments to survive,” said He-Ling Shi, an economics professor at Monash University in Melbourne.

“What this phenomenon reflects is that China’s overall economic situation is now facing a fairly significant risk of deflation.”

Analysts also cite 3 yuan ($0.40) breakfasts and supermarkets offering flash sales as deflationary signs.

China’s catering revenue grew 0.9% year-on-year in June, down from 5.9% in May, official statistics showed. In the first half of 2025, accommodation industry profits in Beijing fell 92.9% year-on-year, according to government data.

“The food and beverage business has been under considerable pressure,” said Wei Zheng, a staff member at Grand Metropark Hotel in Beijing, which began selling street food on July 10.

“Many hotels have adopted methods such as selling outside to increase revenue,” added Wei, noting the hotel earns an extra few thousand yuan a day hawking braised duck, fish stew or crayfish.

Ms. Xu at Beiyuan said their outdoor bestseller was the hotel’s signature crispy roast pigeon at 38 yuan ($5.29) per bird, which is priced at 58 yuan on the menu inside.

Since opening on July 28, the stall has sold about 130 pigeons a day, compared to about 80 previously.

Within a few months, private dining-room use has fallen from full to about one-third, and average per-head spend inside has halved to around 100–150 yuan, Ms. Xu said.

She added the outdoor stall operates with a 10% to 15% margin, which she said was better than the average caterer but still not enough to fully offset the fall in business indoors.

‘HESITANT’ CONSUMERS
Yaling Jiang, founder of research consultancy ApertureChina, said consumers “continue to seek value and novelty in an economic downturn” but are “hesitant” when it comes to high-end spending.

Shopper Seven Chen, who bought barbecue pork, said he understood what the Beiyuan hotel was trying to do, adding that he was also staying in fancy hotels less often than in the past.

“The main thing is people don’t have enough income,” said Mr. Chen, who works in finance and lives nearby.

Others adopting a street food strategy, according to their social media accounts, include the JW Marriott in Chongqing and Hilton Wuhan Riverside in Wuhan. The latter did not comment, while a Marriott staffer said the hotel sells dishes outside from 5 p.m. to 6 p.m. They did not go into further detail.

The five-star River & Holiday Hotel in Chongqing, says its daily revenue surged to 60,000 yuan from just a few thousand after setting up food stalls in its car park last month. Marketing and sales manager Shen Qiuya dismissed online criticism that the practice could erode brand value.

“Every industry is facing difficulties this year,” Shen said. “Survival is the most important thing. Face isn’t worth anything.” — Reuters

WhatsApp says Russia is trying to block it

STOCK PHOTO | Image by Webster2703 from Pixabay

MOSCOW — WhatsApp said Russia was trying to block its services because the social media messaging app owned by Meta Platforms offered people’s right to secure communication, and vowed to continue try ing to make encrypted services available in Russia.

Russia has started restricting some Telegram and WhatsApp calls, accusing the foreign-owned platforms of failing to share information with law enforcement in fraud and terrorism cases.

“WhatsApp is private, end-to-end encrypted, and defies government attempts to violate people’s right to secure communication, which is why Russia is trying to block it from over 100 million Russian people,” WhatsApp said in a statement.

“We will keep doing all we can to make end-to-end encrypted communication available to people everywhere, including in Russia.” — Reuters

Just in time? Manufacturers turn to AI to weather tariff storm

STOCK PHOTO | Image by Rawpixel.Com from Freepik

LONDON — Manufacturers like US lawnmower maker The Toro Company are not panicking at the prospect of US President Donald J. Trump’s global trade tariffs.

Despite five years of dramatic supply disruptions, from the COVID pandemic to today’s trade wars, Toro is resisting any temptation to stack its warehouses to the rafters.

“We are at probably pre-pandemic inventory levels,” says its chief supply-chain manager, Kevin Carpenter, looking relaxed in front of a whiteboard at his office in Minneapolis. “I mean 2019. I think everybody will be at a 2019 level.”

Among US manufacturers, inventories have roller-coasted this year as they rushed to beat Mr. Trump’s deadlines for tariff hikes, only to see them repeatedly delayed. But since their post-pandemic expansion, inventories have mostly contracted, according to US Institute for Supply Management data.

Instead, “just in time” inventory management — which aims to increase efficiency and reduce waste by ordering goods only as they are needed — is back.

But how can firms run lean inventories even as tariffs fluctuate, export bans come out of the blue, and conflict rages?

One of the answers, they say, is artificial intelligence (AI).

Mr. Carpenter says he uses AI to digest the daily stream of news that could impact Toro’s business, from Mr. Trump’s latest social media posts to steel prices, into a custom-made podcast that he listens to each morning.

His team also uses generative AI to sieve an ocean of data and to suggest when and how many components to buy from whom.

It is a boom industry. Spending on software that includes generative AI for supply chains, capable of learning and even performing tasks on its own, could hit $55 billion by 2029, up from $2.7 billion now, according to US research firm Gartner, driven in part by global uncertainties.

HYPE
“The tool just puts up in front of you: ‘I think you can take 100 tons of this product from this plant to transfer it to that plant. And you just hit accept if that makes sense (to you),’” McKinsey supply chain consultant Matt Jochim said.

The biggest providers of overall supply chain software by revenue are Germany’s SAP, US firms Oracle, Coupa and Microsoft and Blue Yonder, a unit of Panasonic, according to Gartner.

Generative AI is in its infancy, with most firms still piloting it spending modest amounts, industry experts say.

Those investments can climb to tens of millions of dollars when deployed at scale, including the use of tools known as AI agents, which make their own decisions and often need costly upgrades to data management and other IT systems, they said.

In commenting for this article, SAP, Oracle, Coupa, Microsoft and Blue Yonder described strong growth for generative AI solutions for supply chains without giving numbers.

At US supply chain consultancy GEP, which sells AI tools like this, Mr. Trump’s tariffs are helping to drive demand.

“The tariff volatility has been big,” says GEP consultant Mukund Acharya, an expert in retail industry supply chains.

SAP said the uncertainty was driving technology take-up. “That’s how it was during the financial crisis, Brexit and COVID. And it’s what we’re seeing now,” Richard Howells, SAP vice-president and supply chain specialist, said in a statement.

An AI agent can sift real-time news feeds on changing tariff scenarios, assess contract renewal dates and a myriad of other data points and come up with a suggested plan of action.

But supply chain experts warn of AI hype, saying a lot of money will be wasted on a vain hope that AI can work miracles.

“AI is really a powerful enabler for supply chain resilience, but it’s not a silver bullet,” says Minna Aila, communications chief at Finnish crane-maker Konecranes and member of a business board that advises the OECD on issues including supply chain resilience.

“I’m still looking forward to the day when AI can predict terrorist attacks that are at sea, for instance.”

Konecranes’ logistics partners are deploying AI on more mundane data, like weather forecasts.

The company makes port cranes that are up to 106 meters (348 feet) high when assembled. When shipping them, AI marries weather forecasts with data like bridge heights to optimize the route.

“To ship those across oceans, you do have to take into consideration weather,” Ms. Aila says.

RISING COSTS
By keeping inventories low, firms can bolster profit margins that are under pressure from rising costs. Every component or finished product sitting on a shelf is capital tied up, incurring finance and storage costs and at risk of obsolescence.

McKinsey has been surveying supply-chain executives since the pandemic. Its most recent survey showed that respondents relying on bigger inventory to cushion disruptions fell to 34% last year from 60% in 2022. Early responses from its upcoming 2025 survey suggest a similar picture, Mr. Jochim said.

Gartner supply chain analyst Noha Tohamy says that without AI, companies would be slower to react and be more likely to be drawn into building up inventories.

“When supply chain organizations don’t have that visibility and don’t really understand the uncertainty, we go for inventory buffering,” Tohamy says.

But AI agents won’t put supply chain managers out of work, not yet, consultants say. Humans still need to make strategic and big tactical decisions, leaving AI agents to do more routine tasks like ordering and scheduling production maintenance.

Toro supply chain chief Carpenter says that without AI, supply chain managers might need to run bigger teams as well.

Is he worried that AI is coming for his job one day? “I hope it doesn’t take it until my kids get through college!” — Reuters

Globe teams up with Khan Academy Philippines, AI for Learning now in GlobeOne App

L-R: Denise Fabella, Executive Director at Khan Academy Philippines, Geraldine B. Acuña-Sunshine, President and CEO at Khan Academy Philippines, Yoly Crisanto, Chief Sustainability and Corporate Communications Officer at Globe, and Apple Evangelista, Sustainability and Social Responsibility Director at Globe

In a shared vision to uplift the state of education in the country, and reach as many learners as possible, Globe and Khan Academy Philippines have collaborated to bring quality education closer to every Filipino. Joining hands to focus on empowering students and educators through inclusive digital learning, this will especially benefit areas where access to learning materials is limited.

The collaboration provides timely support for the current reforms led by the Department of Education, particularly in school digitalization, teacher support, and connectivity projects.

At the heart of this partnership is the digital skills program, which blends Globe’s nationwide connectivity and presence with Khan Academy’s trusted global content. It goes beyond textbooks and traditional teaching, offering lessons in STEM, digital literacy, online safety, and essential life skills, accessible online or through the GlobeOne app.

Students now have access to courses aligned with the Department of Education’s current curriculum, and teachers are supported by Khanmigo, an AI-teaching assistant that makes administrative work easier, thus enabling teachers to have greater learning impact. Khanmigo can work in multiple local Philippine languages upon prompting, such as Tagalog, Waray, Cebuano, Hiligaynon, and Ilocano.

“Education must evolve with the times.  We use technology to make learning easier and more effective for both students and teachers,” said Yoly Crisanto, Globe Chief Sustainability and Corporate Communications Officer. “By working with Khan Academy Philippines, we’re opening doors to leapfrog our students to 21st century learning. Using the GlobeOne app, the pedagogy is inclusive, relevant, and within reach.”

The collaboration will include an employee volunteer program for Globe employees to engage with partner schools and communities on how to use Khan Academy’s educational resources.

“This is the future and digitization is the way forward,” shared Geraldine B. Acuña-Sunshine, President and CEO of Khan Academy Philippines. “We’re not just talking about physical classrooms anymore. We’re imagining classrooms with screens, smart tools, and open access to a world of knowledge. This is bayanihan in action. Every small contribution, every act of support, helps build something bigger than ourselves.”

Education Secretary Sonny Angara joined Ayala Foundation President Tony Lambino, Ayala Foundation Senior Director for Big Bets in Education Maria Margarita E. Trinidad, and Globe Chief Sustainability & Corporate Communications Officer Ms. Yoly Crisanto in observing students at CENTEX Manila as they use tablets from Globe to access Khan Academy last January. (Photo courtesy of Ayala Foundation, Inc.)

Earlier this year, in collaboration with Khan Academy and Ayala Foundation, Globe provided tablets, Blue Boards, and Globe Fiber Prepaid WiFi to five schools as part of Globe’s G-Gantic Goals program. The beneficiary schools include CENTEX Manila in Tondo, Pasong Kawayan 2 West Elementary School in Cavite City, Lahug Elementary School in Cebu City, CENTEX Batangas in Bauan, and Pampanga High School in San Fernando City.

“We extend our deepest gratitude to our valued partners, Globe and Khan Academy Philippines, for championing our digital transformation journey,” shared Education Secretary Sonny Angara. “By bridging our learners and educators to digital tools, we’re not just easing the learning process, we’re empowering dreams and shaping their future.”

Globe and Khan Academy Philippines are calling on students, teachers, parents, and school administrators to access digital learning through the Khan Academy platform.

To access Khan Academy, visit https://www.khanacademy.org/. The platform can also be accessed through the GlobeOne app. Click the Essentials button, then select Khan Academy.

 

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The importance of protecting intellectual property

Protecting the intellectual property of Filipino innovators could help reduce the brain drain in the Philippines, the Department of Science and Technology (DoST) said.

“When we fund a particular innovator for their intellectual property, we don’t just give them money, we don’t just file their intellectual protection,” Marion Ivy D. Decena, director of DoST-Technology Application & Promotion Institute (TAPI), told BusinessWorld in an interview.

“We also educate them why you need to file first in the Philippines before you go out there and file outside,” she said.

#IntellectualProperty
#FilipinoInnovators
#BrainDrainSolutions
#InnovationEconomy
#BusinessWorldPH

DOST invests ₱135 Million in Bicol MSME growth

photo by Edg Adrian A. Eva, BusinessWorld

The Department of Science and Technology (DOST) on Wednesday said that it has invested around P135 million in the Bicol region to support micro, small, and medium enterprises from 2022 to 2025.

Among DOST’s initiatives in the region are the Small Enterprise Technology Upgrading Program (SETUP) and the Community Empowerment through Science and Technology (CEST) program.

“The setup program provides the avenue and opportunity for our MSMEs to level up the quality of their products,” Domingo A. Peña, DOST Albay provincial director, said during the press conference of the regional science, technology, and innovation week (RSTW) held in Legazpi City, Albay.

“It is not just for distribution in the local community, but of course, to export it even outside of Region 5 and even outside of the country.”

Meanwhile, the CEST program, Mr. Peña said, is the agency’s initiative to provide livelihood among impoverished communities, in partnership with allied organizations like the Philippine Chamber of Commerce. The program received a P40 million budget allocation, helping 20 communities in the region.

DOST Undersecretary for Regional Operations, Sa Ancho A. Mabborang, said that the P135 million total funding has helped 135 firms, generating 1,686 jobs in the region from the SETUP initiative alone.

“The initial benefit would be employment…Aside from, of course, the taxes and other domino reaction effects,” Mr. Mabborang said during the same forum.

DOST Secretary Renato U. Solidum Jr. said the agency is also conducting and supporting research, as well as providing technologies, to boost Bicol’s key agricultural industries, including coconut, abaca, pineapple, and cacao.

“Meron kaming [research and development initiative] sa abaca sa Catanduanes… Ang isa pa sa cacao, mayroong R&D center tayo, mayroon pa tayong pineapple dito sa Bicol [We have a research and development initiative for abaca in Catanduanes…another for cacao—we have an R&D center. We also have pineapple here in Bicol],” Mr. Solidum told reporters at the sidelines of the RSTW event.

DOST’s research and development efforts include advancing abaca- and pineapple-based textiles, as well as supporting the development of value-added products from coconut byproducts.

Mr. Solidum said that the agency is already looking for partner universities in the region that are interested in focusing on research in the following agricultural commodities

According to the Philippine Statistics Authority, the Bicol region’s primary agricultural products are coconut, pineapple, abaca, pili nuts, rice, and corn. – Edg Adrian A. Eva

AI, media, creativity & ROI: Global experts join forces at Brand Masters Collab 2025

Brand Masters Collab (BMC) 2025 gathers the region’s top minds on Aug. 28 at Makati Diamond Residences for a powerful, AI-driven learning experience designed for today’s business leaders.

With the theme “Accelerating Marketing ROI: Transforming Creative, Media, and CRM through AI,” this year’s Brand Masters Collab brings together a powerhouse lineup of global experts offering strategic insights and real-world applications, complemented by hands-on workshop activities and industry case studies to help future-proof your business in the age of AI.

Headlining the event is Mimi Lu, Head of Strategy at dentsu Media APAC — a trailblazer behind award-winning, data-powered campaigns for some of the world’s biggest brands across the Asia-Pacific region. Recognized by WARC 100, Campaign Digital Media, and MMA Global, Mimi brings a rare blend of creativity, data, and innovation to the stage.

In her keynote, “The New Growth Formula: Creativity + Data + AI = Results,” Mimi will unpack how AI is shattering creative limits, driving relevance at scale, and delivering ROI through culturally resonant, tech-enabled storytelling.

Joining Mimi Lu is an exceptional roster of global thought leaders, each bringing deep expertise on how AI is reshaping the business landscape across marketing, media, and creativity.

Thomas Hongtack Kim, Chief Creative Officer, Paulus (South Korea)
One of Asia’s most celebrated creative minds, Thomas brings a portfolio of award-winning work from Cannes Lions, D&AD, and One Show. In his talk, he will explore how to preserve creativity’s emotional power while scaling storytelling through AI — delivering culturally resonant, high-impact campaigns across platforms without compromising brand soul. He’ll address new criteria for evaluating AI-enabled creative strategies, including critical questions to ask to distinguish meaningful creative ideas from mere AI iterations.

Justin James, Co-Founder, CTO, and Head of Innovation, Agencio (Singapore)
A visionary AI architect and tech innovator, Justin will explore AI marketing transformation and how AI systems work together to optimize campaigns, personalize customer experiences, and drive ROI across industries. His session will demonstrate how comprehensive AI platforms are changing marketing workflows, showing the evolution from simple automation to intelligent, multi-agent systems that enhance human creativity and strategic thinking.

Crisela Magpayo-Cervantes,CEO, WPP Media (Philippines)
A leading force in media innovation, Crisela will offer a strategic look at how AI is redefining media effectiveness — from cross-channel attribution and spend optimization to organizational transformation. Backed by case studies, her session will provide actionable insights on how AI is reshaping how we view and measure cross-platform performance, exploring new perspectives on traditional KPIs for AI-driven media planning that top media firms are navigating using AI to improve performance and ROI.

The day will culminate in a high-level panel discussion featuring some of the industry’s most respected C-suite leaders, who will share their real-world perspectives on how AI is transforming business strategy, team structures and workflows, brand building, and customer experience. Panelists include Donald Lim, Chief Innovation Officer, Udenna Corp. — a recognized digital trailblazer known for pioneering marketing transformations across industries; Candice Iyog, Chief Marketing and Customer Experience Officer, Cebu Pacific Air — a visionary leader in customer-centric innovation, digital CX, and brand loyalty; Oscar Pobre, CRM and Data Solutions Head of GCash and more!

BMC 2025 isn’t just another conference — it’s a working session for forward-thinking marketers ready to lead.

Go beyond theory with practical, hands-on workshops, AI Application Labs, and collaborative group activities designed to turn insight into immediate action. Dive into real-world case studies from high-performing brands, and uncover what truly drives results — and what doesn’t — in today’s AI-powered landscape. Whether you’re a strategist, creative, or business leader, you’ll leave equipped with actionable tools and a competitive edge.

Seize the opportunity to be part of a high-impact, future-focused gathering of industry leaders. Secure your seat via HelixPay today and stay informed on key event updates by following PANA on Facebook.

————–

Co-presented by the Philippine Association of National Advertisers (PANA) and Certified Digital Marketers (CDM), Brand Masters Collab 2025 is an exclusive, closed-door forum for senior leaders, focused on maximizing marketing ROI through strategic and practical AI integration.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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US losing out on China soybean sales as Brazil fills key supply period

REUTERS

SINGAPORE/BEIJING – U.S. soybean exporters risk missing out on billions of dollars worth of sales to China this year as trade talks drag on and buyers in the top oilseed importer lock in cargoes from Brazil for shipment during the key U.S. marketing season, according to traders.

Chinese importers have finished booking soybean cargoes for September, taking around 8 million metric tons, all from South America, three traders told Reuters.

For October, Chinese buyers have secured about 4 million tons – half of their expected requirement – also from South America, the traders said.

“China’s heavy Q3 soybean purchases suggest the industry has built up inventories ahead of potential Q4 supply risks,” said Wang Wenshen, an analyst at Sublime China Information.

Last year, Chinese oilseed importers bought around 7 million tons from the U.S. for shipments during the two months.

The risk of a prolonged absence of Chinese purchases for the U.S. crop year starting in September amid unresolved trade tensions could add pressure on Chicago futures Sv1 trading not far from five-year lows, traders said.

Typically, most Chinese purchases of U.S. soybeans are shipped between September and January, before Brazilian supplies take over after South America’s harvest.

Chinese buyers are expected to complete this year’s October bookings by early next month, said a trader at an international firm in Singapore.

There could be some room for U.S. to sell soybeans towards the end of 2025 or early next year, but volumes are likely to be limited if tariffs remain.

“The consensus is that Brazil won’t have enough beans, when all is said and done, to satisfy China’s import requirements,” said Terry Reilly, senior agricultural strategist for Marex.

“So there’s going to be a shortfall late in the season. On a Brazilian crop year basis, they may fall short by about two to five million tons.”

China has been cutting its dependence on U.S. agricultural products since the trade war under President Donald Trump’s first term.

Last year, China imported roughly 105 million metric tons of soybeans. Of that, 22.13 million tons came from the U.S., worth $12 billion.

TRADE TENSIONS CLOUD OUTLOOK
On Sunday, Mr. Trump urged China to quadruple its soybean purchases ahead of a tariff truce deadline, a target that analysts said was unfeasible as it would require China to buy almost exclusively from the U.S.

The next day, the two sides extended their tariff truce by 90 days.

However, three traders told Reuters the extension by itself was unlikely to spur purchases, as Beijing’s tariff on U.S. soybean imports remains at 23% – making them uncompetitive.

China could resume buying U.S. soybeans if an agreement to reduce duties is reached.

“One possible scenario is that if both sides reach a deal in November, China could resume buying U.S. soybeans, potentially extending the U.S. export window and putting pressure on Brazil’s new-crop sales,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

Excluding tariffs, U.S. soybeans for October shipment are around $40 per ton cheaper than Brazilian cargoes being bought by China, two traders said.

China has plentiful soybeans on hand after stepping up imports with purchases hitting record highs in recent months. — Reuters

Bitcoin hits fresh record as Fed easing bets add to tailwinds

Representations of cryptocurrency Bitcoin are seen in this illustration picture taken in Paris, France. — REUTERS/BENOIT TESSIER/ILLUSTRATION/FILE PHOTO

TOKYO – Bitcoin hit a record high on Thursday as increasing expectations for easier monetary policy from the Federal Reserve added to tailwinds from recently announced financial reforms.

The world’s largest crypto-asset by market capitalization climbed as much as 0.9% to $124,002.49 in early Asia trading, surpassing its previous peak hit in July. On the day, the second largest crypto-token ether hit $4,780.04, the highest level since late 2021.

Bitcoin’s rally is being powered by increasing certainty of Fed rate cuts, sustained institutional buying and moves by the Trump administration to ease investment in crypto assets, said IG market analyst Tony Sycamore.

“Technically a sustained break above $125k could propel BTC to $150,000,” he wrote in a note.

Bitcoin has risen nearly 32% so far in 2025 on the back of long-sought regulatory wins for the sector following President Donald Trump’s return to the White House. Trump has called himself the “crypto president” and his family has made a series of forays into the sector over the past year.

An executive order last week paved the way to allow crypto assets in 401(k) retirement accounts, highlighting an increasingly favorable regulatory environment in the United States.

Crypto has scored multiple regulatory wins in the U.S. over 2025, including the passage of stablecoin regulations and the U.S. securities regulator’s move to overhaul regulations in order to accommodate the asset class.

Bitcoin’s surge has also sparked a broader rally in the asset class over the past few months, shrugging off the tremors of Trump’s wide-ranging tariff policies.

According to data from CoinMarketCap, the crypto sector’s overall market capitalisation has ballooned to over $4.18 trillion, up from about $2.5 trillion in November 2024, when Trump won the U.S. presidential election.

The latest push for crypto adoption in the United States came via an executive order on Thursday last week, which would ease access to the asset class in 401(k) retirement accounts.

The executive order could also be a boost for asset managers such as BlackRock and Fidelity, which operate crypto exchange-traded funds (ETFs).

Crypto’s push into retirement savings can also be peppered with risks, as the asset class tends to experience much more volatility than stocks and bonds, which asset managers had typically relied on for such accounts. — Reuters

Chinese investors eyeing Indonesia to avoid US tariffs, tap local market

JAKARTA SKYLINE — the view from the top of the National Monument. — JOHN VICTOR D. ORDOÑEZ

JAKARTA – Gao Xiaoyu, the founder of an industrial land consulting firm in Jakarta, has been inundated with calls from Chinese companies eager to expand or set up operations in Indonesia as they try to shield themselves from the United States’ hefty import tariffs.

The 19% U.S. tariff rate for goods from Indonesia is the same as for Malaysia, Philippines and Thailand, and just below Vietnam’s 20%. China’s rates currently exceed 30%.

But Indonesia, Southeast Asia’s biggest economy and the world’s fourth most populous country, has an edge over its neighbors – the potential of its vast consumer market.

“We are quite busy these days. We have meetings from morning till night,” said Gao, who set up her company PT Yard Zeal Indonesia in 2021 with four employees and now has more than 40.

“The industrial parks are also very busy.”

Indonesia’s economy expanded at a better-than-expected 5.12% in the second quarter, the fastest pace in two years, government data showed last week.

“If you can establish a strong business presence in Indonesia, you’ve essentially captured half of the Southeast Asian market,” said Zhang Chao, a Chinese manufacturer who sells motorcycle headlights in Indonesia, the world’s third biggest market for motorbikes.

Vietnam and Thailand were among the major beneficiaries of the first wave of Chinese companies’ overseas diversification, but amid the latest trade turmoil with the United States, other near neighbors are benefiting.

“There has always been a synergy … with Chinese corporates having the confidence to set up shop with ease in Indonesia,” said Mira Arifin, the Indonesia country head at Bank of America. “Indonesia has a huge talent pool with a dynamic young demographic that encourages foreign investors to rapidly build scale in the country.”

Indonesian President Prabowo Subianto has championed China ties, visiting Beijing in November where he held talks with President Xi Jinping and welcoming the Chinese Premier Li Qiang to Jakarta in May.

Investment from China and Hong Kong into Indonesia was up 6.5% year-on-year to $8.2 billion in the first six months of 2025. Total FDI grew 2.58% over the same period to 432.6 trillion rupiah ($26.56 billion), and the government has said it expects more investments in the second half of the year.

MASSIVE CONSUMER MARKET
To be sure, challenges persist across Indonesia, including regulatory hurdles, bureaucratic red tape, ownership restrictions, deficient infrastructure and the lack of a complete industrial supply chain that made China the “workshop of the world” for decades.

Some foreign investors have also raised concerns about the populist Prabowo’s fiscal prudence, as he pushes ahead with his campaign promises, including a flagship programme to deliver free meals to schoolchildren and pregnant women.

After falling in March to its lowest level against the U.S. dollar since June 1998, the rupiah has steadied. It is currently trading about 1% below its level at the end of last year.

At the sprawling, more than 2,700 hectare (6,672 acres) Subang Smartpolitan industrial park in West Java, executives said it had been inundated with enquiries from Chinese investors.

“Our phone, email and WeChat were immediately busy with new customers, agents wanting to introduce clients,” once the U.S.-Indonesia trade deal was announced last month, said Abednego Purnomo, vice-president for sales, marketing and tenant relations of Suryacipta Swadaya, Subang Smartpolitan’s operator.

“Coincidentally, all of them were from China.”

Companies ranging from toy makers and textile firms to electric vehicle makers are scouring for facilities, particularly in West Java, the most populous province in Indonesia, which is home to the Patimban deep sea port.

Chinese demand has pushed up prices of industrial real estate and warehouses by 15% to 25% year-on-year in the first quarter of 2025, the fastest rise in 20 years, according to Gao, from the land consulting firm.

Rivan Munansa, the head of industrial and logistics services at the Indonesian arm of global property consultant Colliers International said that there was an urgency among Chinese firms to move and the company was getting inquiries for industrial land “almost every day” in the run-up to the tariff agreement.

“Most of them (Chinese companies) are looking for immediate opportunities. So, they want land and a temporary building that can be used immediately, it’s like a crash programme,” Rivan said.

Zhang said he signed up for a new four-floor office building in Jakarta in May at an annual rent of 100,000 yuan ($13,936), up 43% from last year, underscoring the pent-up demand.

“The 19% level is lower than my expectation. I thought it would be 30%,” Zhang said, referring to Indonesia’s tariff deal and adding that net profit margins in China could be as little as 3%.

“In Indonesia, it’s relatively easy to achieve net profit margins of 20% to 30%.”

And then there’s the growing pool of consumers with household spending making up more than half of Indonesia’s GDP. The gauge accelerated slightly to 4.97% year-on-year in the second quarter, helped by several public holidays.

“Indonesia has always stood out for a different reason. Beyond supply chain diversification, Indonesia offers what few others in the regions can: a massive domestic market,” said Marco Foster, ASEAN director at Dezan Shira & Associates, an investment consultancy. — Reuters

Trump orders easing of commercial spaceflight regulations, in boon to Musk’s SpaceX

STOCK PHOTO | Image by Arek Socha from Pixabay

WASHINGTON – U.S. President Donald Trump signed an executive order on Wednesday to streamline federal regulation governing commercial rocket launches, a move that would benefit Elon Musk’s SpaceX and other private space ventures.

Mr. Trump’s order, among other things, directs the U.S. transportation secretary to eliminate or expedite environmental reviews for launch licenses administered by the Federal Aviation Administration, the White House said in a statement.

The declaration also calls on the secretary to do away with “outdated, redundant or overly restrictive rules for launch and reentry vehicles.”

“Inefficient permitting processes discourage investment and innovation, limiting the ability of U.S. companies to lead in global space markets,” the executive order states.

It added: “Overly complex environmental and other licensing and permitting regulations slow down commercial space launches and infrastructure development, and benefit entrenched incumbents (who can afford to bear the expense of regulatory compliance) over new market entrants (who cannot).”

Although Mr. Musk and Mr. Trump have remained embroiled in a high-profile feud for months, the billionaire entrepreneur’s SpaceX rocket and satellite venture potentially stands to be the single biggest immediate beneficiary of Mr. Trump’s order on Wednesday.

SpaceX, although not mentioned by name in the executive order, easily leads all other U.S. space industry entities, including NASA, in the sheer number of launches it routinely conducts.

Mr. Musk has complained that environmental impact reviews and post-flight mishap investigations have repeatedly slowed down testing of SpaceX’s ambitious new Starship rocket vehicle, under development at the company’s South Texas launch facility. — Reuters

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