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Greater AI use touted as solution to cyberthreats faced by PHL 

REUTERS

THE Philippines can harness artificial intelligence (AI) to counter cyberthreats as it deepens its digitalization, analysts said.

“Right now, we are heavily already in the digital age. We need to leverage emerging technologies to identify the threats and, of course, mitigate those threats,” Mel T. Migriño, country head and general manager of global trust tech company Gogolook, said at Wednesday’s BusinessWorld Insights session on cybersecurity.

Ms. Migriño said anti-scam solutions powered by AI can help improve detection of cyber threats.

Paul Jackson, chief executive officer of Theos Cyber Solution, called AI “a power for good” but cited the need to identify the gaps in the current system.

“AI is a double-edged sword…the reality is we need to get better at using AI and coming up with innovative ideas where AI can be used not just in big data but in more intelligent ways,” he said.

“I believe that we will have AI investigators who could do reviews, analysis so much faster than the human that could speed up investigations and get more scammers arrested,” he added.

The Philippines has become a cybersecurity hotspot as it transitions to digital systems.

The Philippines has made gains in its Global Cyber  Security Index score, though it remains behind its peers in Southeast Asia, according to Napoleon Castillo, manager for system engineering at Fortinet Philippines.

“We still have a lot of areas for improvement. And one thing that we can improve so far is laws that require implementation of security solutions,” he said.

He cited Republic Act No. 10173 or the Data Privacy Act of 2012, which requires breaches to be manually reported by organizations.

“I believe that our government agencies should have the capability to automatically see and detect those kinds of incidents and investigate themselves (without) waiting for a report,” Mr. Castillo said.

Jocel de Guzman, co-founder and co-lead convener of Scam Watch Pilipinas, said companies should incorporate cybersecurity into their programs to empower stakeholders against scams.

“Create a customer-friendly anti-scam program, not just a campaign. And when you create a program, you have to make sure you involve everyone, make cybersecurity mindset a part of your corporate culture. Protect your employees, especially protect your customers,” Mr. De Guzman said. — Sheldeen Joy Talavera

Private financing for waste, transport needed to hit climate financing goals, GFI says

ANGELES CITY INFO OFFICE

THE GOVERNMENT needs to mobilize private financing for waste and transport projects to hit its climate financing requirements for the next five years, the Green Finance Institute (GFI) said in a report.

“The Philippines presents a strong but underexplored opportunity for private investment in waste and transport — two critical sectors for meeting its climate goals. While public finance remains limited, there’s growing momentum to develop financial mechanisms that can unlock private capital. With a redesigned Green Force and increasing interest in sustainable finance, now is the time to shift focus towards sectors that have so far been overlooked but hold real potential for impact,” GFI International Managing Director James Hooton said in a statement on Wednesday.

According to its Nationally Determined Contribution (NDC) implementation plan, the government will only be funding 2.71% of the estimated P4.1 trillion in financing required to meet its target of reducing 75% of greenhouse gases by 2030.

The GFI said the country will need to rely on private capital and international support to achieve its climate targets.

It added that the financing landscape for waste and transport sectors is underdeveloped, compared to other sectors that require funding under the NDC such as energy.

Private investors have likewise remained uncertain about tapping mass transport and solid waste as green investment opportunities.

The GFI said the investment gap could be addressed by improving the Inter-agency Technical Working Group on Sustainable Finance, known as the Green Force, which is headed by the Department of Finance (DoF) and the Climate Change Commission (CCC).

According to the study, an operating model capable of delivering risk-adjusted returns needs to be added to mobilize private capital at scale.

It said the Green Force Clusters should employ a sector-specific structure, supported by partnerships with private sector actors as each sector has different barriers to financing, risks, and demand.

The GFI said a neutral, market-facing convener will be needed to connect the Clusters with private capital and market participants, similar to the UK, where the GFI partners with financial institutions, corporations and policymakers to co-create solutions that mobilize private capital.

The study proposes an investment platform structure for the Green Force, in which the DoF and CCC or the Department of Environment and Natural Resources provide strategic oversight of separate clusters dedicated to policy, financing, and investments.

This structure could also be strengthened through an Executive Order that will establish the Green Force Platform, including clusters, legally and structurally; grant specific mandates such as formalizing risk-sharing tools and project preparation; and formalize private sector engagement structures.

The GFI said the Philippines’ financial architecture needs to be improved through “standardized supply agreements, credible offtake arrangements in waste and fuel markets, long-term certainty on tipping fees or fare revenues, and dedicated financial mechanisms that reduce risk at the transaction level.” — Aaron Michael C. Sy

‘Unstoppable’ EV transition seen playing to PHL’s strengths in nickel, copper, cobalt

REUTERS

THE Philippines’ critical mineral resources leave it well-placed to benefit from the inevitable transition to electric vehicles (EVs), S&P Global said.

S&P Global’s Mary Nyah Alcantara, a metallurgical engineer, said  during the Mining Philippines 2025 Conference, noted the value of Philippine critical minerals like nickel, copper, cobalt, and gold, which are rising in price and demand.

Demand for nickel, copper, and cobalt is driven by the “unstoppable” transition to renewable energy, particularly in EVs in China, the top importer of Philippine ores.

Nickel, copper, and cobalt are some of the raw materials for EV batteries. The Philippines had the third-largest nickel reserves as of 2024.

While oversupply will cause nickel to bottom out by 2031, Ms. Alcantara said she expects the commodity to start rising afterwards.

Gold October prices hit a record $4,040 per ounce. They are projected to peak in 2026 before stabilizing at around $4,100 in 2035, she said.

Ms. Alcantara said miners and processors must increase production because of the strong demand.

The Philippines currently lacks refining capabilities and needs to export raw ore to refiners outside the country. — Andre Christopher H. Alampay

Goodbye tension, hello pension

Second of two parts

In the first part of our discussion, we highlighted the importance of creating robust retirement plans that exceed the minimum requirements set by Philippine retirement laws. As we move into this second part, we focus on the practicalities of implementing these strategic retirement plans, ensuring compliance with regulatory requirements, and maximizing available tax benefits that can significantly impact both employers and employees.

Apart from the registration of the plan with the Bureau of Internal Revenue (BIR) as a “Tax-Qualified Plan,” employers must also take into consideration other compliance requirements such as engaging actuaries for valuation including PAS 19R and funding purposes and tax compliance returns filing and submission based on the plan’s registration with the BIR, communicate benefits clearly to employees, and review and update the plan regularly to keep pace with inflation and workforce changes.

Under the BIR’s revised regulations on private retirement benefit plans, within 30 days from the effectivity of the retirement benefit plan, the employer must apply for the issuance of a certification of qualification for tax exemption of the employee retirement benefit plan with the BIR. Otherwise, a penalty will be imposed on the employer. The BIR requires the submission of certain documents when applying for a Certificate of Qualification for Retirement Benefit Plans and will depend on whether the plan is trusteed or non-trusteed.

In the case of a trusteed Retirement Plan or those whose assets or funds are being held, managed, and administered by entity appointed as trustee by an employer for the benefit of its employees, employers must submit, among others, the Retirement Plan Rules and Regulations with provisions on non-forfeiture and non-diversion rights, the actuarial valuation report (must not be more than three years prior to the date of application), and the trust agreement and current fund amount. The BIR also requires the submission of the retirement plan’s registration details and may request additional documents over the course of its review.

In the case of a non-trusteed Retirement Plan, the documents appear to be more limited; that is, the employer must provide the written program constituting the Plan and the Deposit Administration Contract or Deferred Annuity Contract. The same documentation requirements are applicable to multi-employer plans. A copy should be submitted for each of the participating employers together with the Participating Agreement.

In deciding whether to select between a trusteed or non-trusteed retirement plan, the company must consider the investment earnings, administrative expenses and tax benefits (i.e., tax deductible contributions and tax exemption for investment earnings).  The company provides greater control over where the funds are invested in a trusteed plan as compared to a non-trusteed plan, though the latter entails lower expenses.   

Pending the employer’s application with the BIR, the retirement benefits received by any qualified retiring employee or investment income received by the Retirement Fund is exempt from income tax and, consequently, from withholding tax pursuant to RA No. 4917, and Section 60(B) of the Tax Code, respectively. Once issued, the Certificate will be valid unless revoked by the BIR.  However, should the application of the employer be denied by the BIR, the employer/trust will be directly and solely liable for any deficiency in income taxes.

The BIR’s guidelines underscore the need for timely registration, accurate documentation, and ongoing compliance. Employers must weigh the tradeoffs between control, cost, and administrative complexity when choosing the appropriate plan structure. Trusteed plans offer greater investment oversight, while non-trusteed plans may offer simplicity and lower expenses.

For purposes of tax compliance, trustees of all Retirement Plans are required to file an annual information return on or before April 15 of each year with the Revenue District Office (RDO) having jurisdiction over the employer together with the copy of the issued Certificate of Qualification. The submissions are subject to post audit by the BIR.

The gap between statutory benefits and actual retirement needs is undeniable. RA 4917 provides a legal and tax-efficient way for companies to support employees and secure their future. A written retirement plan isn’t just good practice — it’s a strategic move that benefits both employer and employee. Retirement should be a time of peace, not financial stress. By offering comprehensive retirement benefits to employees, companies can make that dream a reality.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute for specific advice.

 

Marvin Madrigalejo is a Tax-Client Accounting Services (Tax-CAS) executive director while John Ian Keng is an assurance director at Isla Lipana & Co., the Philippine member firm of the PwC global network.

+63 (2) 8845-2728

marvin.l.madrigalejo@pwc.com

john.ian.keng@pwc.com

Top golfers launch bid in $2-M International Series Philippines

INTERNATIONALSERIES.COM

SANTA ROSA, Laguna — Time to get into the swing of things in the largest golf event on local soil in decades.

Major winners, PGA Tour titlists, Asian Tour victors, homegrown and foreign aces with compelling storylines and strong motivation to succeed launch their bid in the $2-million International Series Philippines presented by BingoPlus on Thursday at the Sta. Elena Golf Club.

Right smack in the action is top local bet Miguel Tabuena, who tees off from No. 1 with American two-time major champion and former world No. 1 Dustin Johnson and South African major winner Louis Oosthuizen in a dream flight at 11:40 a.m.

“This is what I have been dreaming of — to play in my home country with the best players,” said Mr. Tabuena of his pairing with Mr. Johnson, winner of the 2016 US Open and 2020 Masters Tournament, and Mr. Oosthuizen, titlist in the 2010 Open Championship.

This marquee group is expected to draw a large crowd that’s raring to see Mr. Tabuena go toe-to-toe with the decorated golfers at his “home club.”

“You always want to perform well in your home country, but still, you have to treat it like any other event,” said Mr. Tabuena while downplaying his perceived advantage on the Robert Trent Jones-designed course.

“These guys are major winners, and they’ll adapt to anything, right? So I guess course knowledge isn’t such a big factor this week. But you know, I’m going to give it my best shot and keep that Philippine flag on top of the leaderboard.”

There are several other big names worth following as they strut their stuff at the layout that winds through natural lakes, rolling fairways and native trees with views of Mt. Makiling and the Sierra Madre.

Patrick Reed, the 2018 Masters titlist, is out to carry over his triumph at LIV Golf Dallas and runner-up finish at the International Series Macau. The 46th ranked American goes up against Dean Burmester and John Catlin at 11:30 a.m.

South African Charl Schwartzel, the 2011 Masters conqueror, faces Wade Ormsby and Jinichiro Kozuma at 11:50 a.m.

Joining Mr. Tabuena in carrying Pinoys’ fight are Angelo Que, Justin Quiban, Aidric Chan, Sean Ramos, Keanu Jahns, Carl Corpus, Rupert Zaragosa, Clyde Mondilla, Enrico Gallardo and amateur Perry Bucay.

“I’m feeling pretty confident this week. I’ve been in good form for the past six months, finishing in the top three almost every time I’ve played locally,” said the 46-year-old Mr. Que. “However, I haven’t been performing as well abroad. Luckily, the International Series is here in the Philippines this week, so hopefully, I can continue that good form and compete against the best.”

For young guns like Mr. Chan, 24, this is a rare opportunity to learn from the likes of Messrs. Johnson and Reed and gauge where he’s at.

“I’m really excited. It’s something we all look forward to. Not many golfers get the chance to compete with Major champions — players we grew up watching,” said Mr. Chan. “Hopefully, I can make the weekend and maybe even play alongside one of them. That’s something to really aim for. It’s inspiring and motivates me to push harder this week.” — Olmin Leyba

FEU beats Ateneo to start the second round of UAAP 88

FEU TAMARAWS vs Ateneo Blue Eagles — UAAP/NICOLE HERNANDEZ

Games on Saturday
(Mall of Asian Arena)
7:30 a.m. – UE vs DLSU (16U)
9:30 a.m. – UST vs ADU (16U)
11:30 a.m. – ADU vs UE (Women)
1:30 p.m. – ADU vs UE (Men)
4:30 p.m. – DLSU vs UST (Men)
7 p.m. – DLSU vs UST (Women)

FAR EASTERN UNIVERSITY (FEU) dealt Ateneo de Manila University its fourth straight loss, 75-68, to start the second round on a high note in the UAAP Season 88 men’s basketball tournament on Wednesday at the Mall of Asia Arena.

Jorrick Bautista salvaged the FEU Tamaraws with back-to-back triples in the final minute, ensuring no repeat of history after faltering in an 86-83 overtime defeat to the same team in the first round.

It’s the second straight win for FEU to climb to 3-5 for a fighting chance to the Final Four as the Ateneo Blue Eagles’ free fall continued to 4-4 at fifth place after an unbeaten start. Adamson University, at 3-4, sits between the two squads, in the race to the top.

“We had a meeting with Jorick (Bautista) and Janrey (Pasaol) and talked about the expectations that I know are high and can sometimes be unfair, but they’re so talented and therefore needed to lead by example,” said coach Sean Chambers.

“These last two games, they have been like what I’ve envisioned — being the best two guards in the league.”

Mr. Bautista fired eight of his 20 points in the fourth quarter, none bigger than the dagger triple in the last 27 seconds to give Tamaraws a 73-68 cushion.

Kirby Mongcopa chalked up 16 points and nine rebounds, Mo Konateh had 15 points, 17 rebounds and three blocks while Janrey Pasaol added the same output with 13 assists, five rebounds and two steals to quarterback the Tamaraws’ onslaught.

FEU, on the heels of a 95-76 domination of the winless University of the East to end the first round in style, picked up from where it left off and went toe-to-toe with the Blue Eagles all duel long.

No team managed to build a double-digit lead until FEU’s late-game avalanche, turning a 63-67 deficit capped by Mr. Bautista’s triple in the 1:19 mark for a sudden 70-67 lead.

Dom Escobar split his charities the next possession, rolling the red carpet for Mr. Bautista’s another long bomb off Mr. Pasaol’s play as Mr. Konateh iced the deal with two freebies for the final count.

Mr. Escobar and Waki Espina led with 15 and 12 points, respectively, for Ateneo but to no avail.

Ace floor general Jared Bahay bled for just three points in his return from a shoulder injury he suffered in their 98-89 triple overtime loss to University of Santo Tomas at the Blue Eagle Gym.

Nigerian anchor Divine Adili still sat out owing to back injury, adding to the piling woes of the Blue Eagles now outside the top four after a torrid start in the first round atop of the standings.

In women’s basketball, vengeful Santo Tomas (7-0) completed a first-round wipeout with a 75-61 win over University of the Philippines (2-5).

Brigette Santos fired 26 points to spearhead the Growling Tigresses’ first sweep since 2011, shoring up their redemption tour after losing to the throne to the National U Bulldogs in Season 87. — John Bryan Ulanday

The scores:

FEU 75 – Bautista 20, Mongcopa 16, Pasaol 15, Konateh 15, Ona 4, Salangsang 3, Felipe 2, Owens 0, Montemayor 0, Macapagal 0, Jones 0.

Ateneo 68 – Escobar 15, Espina 12, Tuano 9, Lazo 8, Espinosa 6, Fjellvang 5, Ladi 4, Lazaro 4, Bahay 3, Bongo 2, Ong 0.

Quarterscores: 17-20, 37-37, 55-54, 75-68

Cariño, Tabucol lose to Thai pair in teqball semifinals in AYG

MANAMA — The Philippines’ Crystal Cariño and Nicole Tabucol missed out on a potential shot at a gold medal after succumbing to Thailand’s Phatrawan Simawong and Chiratchayaphon Kenkhunthod, 2-0, in the teqball semifinals of the 3rd Asian Youth Games (AYG) at the Exhibition World Bahrain on Wednesday.

The Filipina pair, however, will have a chance at a bronze in the sport that’s a mix of sepak takraw and table tennis if they beat host Bahrain’s Rawan Abdulaziz and Fatima Albanna in the girls’ doubles event on Thursday.

Alas Pilipinas likewise suffered its first defeat in girls’ volleyball at the hands of regional powerhouse Thailand, 25-21, 25-18, 25-14, at the Hall B of the Isa Sports City.

It was the first defeat for the Nationals in two outings.

Despite it, the country, represented by National University bracketed at Group D, made it to the classification phase for the teams that finished in the top eight from the four groups.

Action though intensifies starting on Thursday in golf, mixed martials, muay, taekwondo and triathlon where the country has bets with a legitimate shot at a podium finish, possibly a gold.

One of the country’s entries with the best chance at a gold is John Brix Ramiscal, a world championship gold winner in Abu Dhabi last month in the junior 16-17 male category.

The Philippines is hoping to add to the first gold captured by Kram Airam Carpio in pencak silat a few days back and possibly surpass its two-gold, three-silver haul last edition in Nanjing, China 12 years ago.

“We can win more because our lineup is strong and we can pull surprises in golf, weightlifting, athletics, muay and boxing,” said Philippine Olympic Committee (POC) President Abraham “Bambol” Tolentino, who attended Wednesday’s Olympic Council of Asia meeting at the Art Hotel and Resort here.

Mr. Tolentino, part of the OCA board, said gold winners should take home a bounty for their feats.

The government, by law, is mandated to hand gold winners in Asian-level events done at least biennially and participated in by a minimum of 25 countries with an incentive worth P500,000.

“The Philippine Sports Commission and the POC should give incentives. If The Palace sees that we gave them, there’s a big chance they will give too,” he added. — Joey Villar

Altas down Generals, CSB overpowers SSC-R in NCAA Season 101

Games on Thursday
(FilOil Ecooil Arena)
8:30 a.m. – AU vs San Beda (Jrs/Srs)
2:30 p.m. – JRU vs Mapúa (Srs/Jrs)

UNIVERSITY of Perpetual Help System DALTA (UPHSD) remained unflappable in Group A after it downed Emilio Aguinaldo College (EAC), 69-60, on Wednesday in NCAA Season 101 at the FilOil EcoOil Arena.

But the Altas had to overcome an excruciatingly slow start and erased a double-digit lead in the opening quarter by stifling the Generals with their resolute defense in the final three period in snaring their sixth win in seven outings.

“We need to win as much as we can for us to have a chance,” said UPHSD coach Olsen Racela.

The PBA Hall-of-Famer also cautioned his wards not to give in to complacency.

“We need to really play cautiously and not be overconfident,” he said. “As long as we stick to our system, especially on defense, we’ll be okay.”

The Generals slipped to 3-4.

Earlier, College of St. Benilde (CSB) overpowered San Sebastian College-Recoletos (SSC-R), 82-64, to improve to 4-2 in Group B.

“We talked about wanting to bounce back and finding our confidence because we haven’t been playing good basketball all season long,” said CSB mentor Charles Tiu.

“They kind of woke up [Wednesday] and got the job done.”

The Stags stumbled to 1-6. — Joey Villar

The scores:

First Game

CSB 82 – Liwag 19, Sanchez 16, Oli 10, Morales 9, Gonzaga 6, Torres 4, Umali 3, Gaspay 3, Daja 3, Celis 3, Ynot 2, Moore 2, Cometa 2, Ancheta 0, Galas 0

SSC-R 64 – Dela Rama 20, Felebrico 12, Gabat 9, Ricio 9, Velasco 7, Cuajao 3, Lumanag 2, Nepacena 2, Castor 0, Dimaunahan 0, Segovia 0, Gomez De Liaño 0

Quarterscores: 19-14; 42-24; 63-43 82-64

Second Game

UPHSD 69 – Abis 15, Gojo Cruz 12, Boral 10, Nuñez 9, Sleat 7, Casinilio 5, Tulabut 4, Maglupay 3, Alcantara 2, Duremdes 2, Orgo 0, Pagulayan 0, Gelsano 0

EAC 60 – Oftana 18, Lucero 12, Bagay 10, Quinal 5, Angeles 5, Castillo 4, Loristo 3, Ochavo 2, Omandac 1, Bacud 0, Shanoda 0, Tolentino 0

Quarterscores: 15-25; 37-38; 54-52; 69-60

Dodgers’ Blake Snell, Yoshinobu Yamamoto to start Games 1-2

GIVEN the Los Angeles Dodgers’ starting pitching dominance in the postseason, manager Dave Roberts could pick anybody in the rotation and feel good about his team’s chances.

But after the way left-hander Blake Snell and righty Yoshinobu Yamamoto performed in the first two games of the NLCS, why change anything for the World Series?

Roberts confirmed this line of thinking on Tuesday as he tabbed Snell and Yamamoto to start on Friday and Saturday in Toronto against the Blue Jays. Both will be working on 10 days’ rest.

Snell, who inked a five-year, $182-million deal with the Dodgers in the offseason, threw 21 innings versus National League competition in the playoffs and allowed just two runs (0.86 ERA) and six hits. He blanked strong-hitting teams in Philadelphia and Milwaukee — highlighted by allowing just one hit over eight innings with 10 strikeouts and no walks in Game 1 of the NLCS against the Brewers.

Yamamoto threw a complete game the next night in Game 2 against Milwaukee, allowing 1 run on 3 hits.

Both of those efforts came on the road, the same challenge the duo will face against the hot-hitting Blue Jays.

Roberts has other outstanding options for Games 3 and 4 in Los Angeles as power right-handers Tyler Glasnow (0.68 playoff ERA) and Shohei Ohtani are lined up for those games. — Reuters

Butler III, Warriors down James-less Lakers in opener

JIMMY BUTLER III scored 31 points and Stephen Curry added 23 as the visiting Golden State Warriors opened the season with a 119-109 victory over the Los Angeles Lakers on Tuesday.

Jonathan Kuminga produced 17 points and nine rebounds and Buddy Hield also had 17 points for the Warriors, who took control with an 18-4 scoring burst to open the second half.

Golden State finished 17 of 40 (42.5%) from 3-point range as Kuminga went 4 of 6 from distance and Hield went 5 of 10. Curry was 3 of 9 from the 3-point arc.

Luka Doncic amassed 43 points, 12 rebounds and nine assists in his first season opener with the Lakers after arriving in a trade from the Dallas Mavericks in February. Austin Reaves totaled 26 points and nine assists for Los Angeles.

Deandre Ayton scored 10 points in his Lakers debut as Los Angeles went 8 of 32 (25%) from 3-point range while missing 11 of 28 free-throw attempts. The Warriors went 26 of 29 from the free-throw line with Butler going 16 of 16.

Lakers star LeBron James missed the first season opener of his 23-year NBA career due to sciatica.

The Warriors turned a one-point halftime lead into a 73-58 advantage less than five minutes into the second half. Golden State led 90-79 through three quarters behind 13 points from Kuminga in the period. — Reuters

China overtakes United States as Germany’s top trading partner

US and Chinese flags are seen in this illustration. — REUTERS

BERLIN — China overtook the US as Germany’s largest trading partner in the first eight months of 2025, regaining the top spot as higher tariffs weighed on German exports to the United States, preliminary data from the German statistics office showed.

German imports and exports with China totaled €163.4 billion ($190.7 billion) from January to August, while trade with the US amounted to €162.8 billion, according to Reuters calculations.

The US was Germany’s top trading partner in 2024, ending an eight-year streak for China. The shift came as Germany sought to reduce its reliance on China, with Berlin citing political differences and accusing Beijing of unfair practices.

Trade dynamics shifted again this year, however, with Donald J. Trump’s return to the White House and renewed tariffs.

US TARIFFS TAKE THEIR TOLL ON GERMAN EXPORTS
Tariffs have pushed down German exports to the United States, which fell 7.4% in the first eight months of the year compared with 2024 to €99.6 billion. In August, exports to the US fell 23.5% year on year, showing that the trend is accelerating.

“There is no question that US tariff and trade policy is an important reason for the decline in sales,” said Dirk Jandura, president of the BGA foreign trade association.

Mr. Jandura said that US demand for classic German export goods, such as cars, machinery and chemicals, had fallen.

With the ongoing tariff threat and the stronger euro, German exports to the US are unlikely to rebound any time soon, said Carsten Brzeski, global head of macro at ING.

CHINESE IMPORTS TO GERMANY SURGE
Exports to China fell even more sharply than those to the United States, dropping 13.5% year-on-year to €54.7 billion in the first eight months of 2025.

By contrast, imports from China rose 8.3% to €108.8 billion.

“The renewed import boom from China is worrying,” said Mr. Brzeski. “Particularly as data show that these imports come at dumping prices.”

He warned that this not only increased German dependence on China but could add to stress in key industries where China has become a major rival.

“In the absence of economic dynamism at home, some in Germany may now be troubled by any shifts on world markets,” said Berenberg economist Salomon Fiedler. ($1 = 0.8575 euros). — Reuters

Japan’s new leader to woo Trump with pickups and soybeans

THE Japanese national flag waves at the Bank of Japan building in Tokyo, Japan on March 18, 2024. — REUTERS/KIM KYUNG-HOON/FILE PHOTO

TOKYO — As Japan’s new premier Sanae Takaichi got to work on Wednesday, her government began finalizing a purchase package, including US pickups, soybeans and gas, to present to President Donald J. Trump in trade and security talks next week, two sources said.

She will not, however, commit to any new defense spending target at the meeting, which comes as Washington presses Japan and other allies to do more, said one of the sources with knowledge of the preparations.

The two leaders will sit down in Tokyo with Mr. Trump early next week, in his first visit to Japan since his re-election following an agreement by her predecessor, Shigeru Ishiba, to invest as much as $550 billion in the US in return for lower auto tariffs.

“The alliance with the United States is the cornerstone of Japan foreign and security policy,” Ms. Takaichi said on Tuesday at her inaugural press conference as prime minister.

“It would be premature to comment on the discussions that may take place during President Trump’s visit,” A Japanese government spokesperson said when asked about planned purchase package and possible investments.

The White House did not immediately respond to requests for comment.

DIPLOMATIC TEST
The sweeteners Ms. Takaichi plans to offer Mr. Trump in her first major diplomatic test include the purchase of Ford pickup trucks, an idea floated by Mr. Trump, and an agreement to buy more US soybeans, which US Commerce Secretary Howard Lutnick requested in a call with his Japanese counterpart last week, said the sources, who asked not to be identified because they are not authorized to talk to the media.

Beijing curbs of US soybean imports have hurt American farmers reliant on Asian markets. In September, exports to China dropped to zero for the first time in almost seven years.

Tokyo could trim purchases of Brazilian soybeans to make room for more US imports, which already account for 70% of Japan’s consumption, one of the sources told Reuters.

The F150s, designed for wider US roads, may be used in Japan as snow plows.

INVESTMENT AND DEFENSE SPENDING
Japan also plans to buy more US liquefied natural gas, although not for now from an Alaskan pipeline project championed by Mr. Trump. Officials will also present a list of candidate investment projects under the $550-billion deal, which both governments will review before Mr. Trump makes a final pick, the source added.

During the ruling Liberal Democratic Party leadership race, Ms. Takaichi was the only one of the five candidates to suggest the agreement, which gives the US the lion’s share of returns, was unfair. After her victory she said she would honor the pact.

“Even with a one-to-nine profit split, if the risk is low, it can still make business sense,” a separate Japanese government source said.

On defense the hardline conservative premier has said she wants to deepen security ties with Washington. Japan already hosts the biggest concentration of US military power, including an aircraft carrier, a US Marine expeditionary force and scores of fighter jets.

At next week’s meeting she will signal Japan’s willingness to accelerate its defense build-up beyond the 2% of gross domestic product (GDP) target set for 2027, the first source said.

Ms. Takaichi yesterday said she will instruct defense officials to review three 2022 strategy documents that underpin what is already Japan’s biggest military expansion since World War Two.

Asked on Wednesday whether Japan would review the national security documents, Foreign Minister Toshimitsu Motegi said: “It’s not about the amount or the ratio to GDP. What matters is the substance of our defense capabilities.” — Reuters

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