Afp Business Asia

Chinese internet giant Baidu on Wednesday posted a quarterly revenue increase of three percent, as the firm seeks to grow its presence in artificial intelligence and expand its robotaxi business abroad.The Beijing-based firm operates China’s main search engine and has long been a key player in the domestic tech industry — but faces stiff competition both from traditional rivals like Tencent and Alibaba and a host of newer upstarts.Baidu derives a large part of its revenue from advertising, a sector vulnerable to fluctuations in consumer sentiment, and has sought to diversify with cloud computing, self-driving cars and AI.The firm achieved revenue of 32.45 billion yuan ($4.5 billion) in the first quarter of 2025, up 3 percent year-on-year, according to an earnings report released Wednesday on the Hong Kong Stock Exchange website.Net income during the first quarter reached 7.72 billion yuan, up 42 percent year-on-year.China’s consumer-facing AI sector attracted global attention after startup DeepSeek released a model that performed comparably to competitors such as US-made ChatGPT, apparently at a much lower developing cost.In March, Baidu announced the launch of its latest X1 reasoning model — which the company claims performs similarly to DeepSeek’s but for a lower cost — and a new foundation model, Ernie 4.5.Baidu has also axed subscriptions for its AI chatbot Ernie Bot, making it free for individual users.”We are confident that our AI-first strategy positions us to remain at the forefront and to capture long-term growth opportunities in the AI era,” said Robin Li, co-founder and CEO of Baidu, in the filing.”We also achieved a pivotal milestone in our robotaxi business, as Apollo Go expanded internationally,” Li added. In March Baidu announced it had signed an agreement to launch autonomous driving tests and services in Dubai, Apollo Go’s first international fleet deployment.The company also plans to start testing self-driving taxis in Europe by the end of this year, a source with knowledge of the matter confirmed to AFP earlier this month.The company will also start testing in Turkey, they said. 

The number of foreign visitors to Japan soared 28.5 percent in April year-on-year to a record 3.91 million, official figures showed Wednesday.”Spring cherry blossom season boosted demand for visits to Japan in many markets, as in the previous month, and overseas travel demand increased in some Asian countries, in Europe, the US and Australia to coincide with the Easter holidays,” the Japan National Tourism Organization said.It said the total surpassed the previous record of 3.78 million in January 2025 and was the highest single month on record, and the first single month to exceed 3.9 million visitors.For the first four months of the year the total was 14.4 million, a rise of 24.5 percent.A weak yen has for months been leading to a boom in visitors, with national tourism figures released in January showing a record of about 36.8 million arrivals last year.The Japanese government has set an ambitious target of almost doubling tourist numbers to 60 million annually by 2030.Authorities say they want to spread sightseers more evenly around the country, and to avoid a bottleneck of visitors eager to snap spring cherry blossoms or vivid autumn colours.But as in other global tourist magnets like Venice in Italy, there has been growing pushback from residents in destinations such as the ancient capital of Kyoto.The tradition-steeped city, just a couple of hours from Tokyo on the bullet train, is famed for its kimono-clad geisha performers and increasingly crowded Buddhist temples.On Mount Fuji, the nation’s highest mountain and a once-peaceful pilgrimage site, authorities have started charging climbers in an effort to reduce overcrowding.Last year a barrier was briefly erected outside a convenience store to stop people standing in the road to photograph a view of the snow-capped volcano that had gone viral.Business travellers in cities including Tokyo have complained that they have been priced out of hotels because of high demand from tourists.Tourists gobbling sushi and onigiri have also been cited as a factor in shortages of rice, which has pushed the price of the staple to record levels, creating a political headache for the government.This year the Japanese Meteorological Agency (JMA) on March 30 declared the country’s most common and popular “somei yoshino” variety of cherry tree in full bloom in Tokyo.Although this year’s blooming dates are around the average, the JMA says climate change and the urban heat-island effect are causing sakura to flower approximately 1.2 days earlier every 10 years.Katsuhiro Miyamoto, professor emeritus at Kansai University, estimated the economic impact of cherry blossom season in Japan, from travel to parties held under the flowers, at 1.1 trillion yen ($7.3 billion) this year, up from 616 billion yen in 2023.

South Korea’s exports fell 2.4 percent year-on-year in the first 20 days of May, partly due to weak sales to the United States after Washington imposed and then partly lifted sweeping tariffs, official data showed Wednesday.Last month, the country’s exports showed unexpected strength, lifted by robust semiconductor demand even as US tariffs weighed on trade.But early signs suggest that rising trade tensions are beginning to affect South Korea’s other key industries — including automobiles, which have been hit by a 25 percent levy.South Korea’s exports totalled $32 billion from May 1 to 20, down 2.4 percent from the same period last year, according to data from the Korea Customs Service.Shipments to the United States, Seoul’s key ally, fell 14.6 percent year-on-year during the period, while exports to China and the European Union also declined by 7.2 percent and 2.7 percent, respectively.Asia’s fourth-largest economy was hit with a 25 percent across-the-board tariff by the United States — although it was temporarily reduced to 10 percent for 90 days starting in early April.But specific 25 percent duties remain in place on key exports such as steel, aluminium and automobiles.Following a second round of ministerial-level trade talks last week, Seoul is now in working-level technical discussions with Washington, aiming to secure full tariff exemptions by finalising a trade package by early July.Shipments of semiconductors, South Korea’s biggest export, rose 17.3 percent year-on-year.Experts have suggested the rise in chip exports, including the high-tech ones needed for AI, could be due to stockpiling.But the country’s other key exports, cars and steel, fell on-year by 6.3 percent and 12.1 percent, respectively, during the May 1-20 period.The auto industry accounts for 27 percent of South Korea’s exports to the United States, which takes in nearly half of the country’s car exports.Exports of petroleum products, home appliances and wireless communication devices also all dropped, by 24.1 percent, 19.7 percent and 5.9 percent, respectively.Seoul aims to leverage the talks with Washington with commitments to purchase more US liquefied natural gas (LNG) and offer support in shipbuilding, a sector in which South Korea is a leader, after China.- Sharp slowdown -Cheong In-kyo, South Korea’s minister for trade, said for the entire month of May, the country’s “exports to the US and China are expected to decline as the impact of US tariff measures begins to materialise.”On the ongoing tariffs talks with Washington, Cheong said “we will actively engage … to find a mutually beneficial solution, with national interest as our top priority.”Seoul’s finance ministry announced Wednesday that it will deploy a total of 28.6 trillion won ($20.5 billion) in emergency liquidity and financial aid to support domestic firms impacted by US tariff measures.The amount marks an increase from the 25 trillion won announced by the government last month, but was part of an additional budget dedicated to easing tariff woes for the country’s exporters announced earlier this year. “The government is taking a preemptive approach to the impact of tariffs by formulating an all-ministry export strategy,” the ministry said in a statement.It is also “working to fundamentally strengthen the ecosystem of high-tech industries such as semiconductors, AI, and secondary batteries,” the ministry added.South Korea’s imports also fell 2.5 percent year-on-year to $32.2 billion in the first 20 days of May, resulting in a trade deficit of $300 million, according to the Korea Customs Service.Due to escalating tariffs, experts now expect a meagre 0.4 percent growth in exports for the Asia-Pacific region this year — a sharp slowdown from 5.7 percent in 2024, according to an APEC report released last week.

Beijing condemned on Wednesday new US warnings on the use of AI chips by Chinese tech giant Huawei, vowing it would take steps against “bullying” efforts to restrict access to high-tech semiconductors and supply chains.Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing’s military systems and otherwise undermine American dominance in AI.US President Donald Trump’s administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence.Some US lawmakers feared the restrictions would have incentivised countries to go to China for AI chips, spurring the superpower’s development of state-of-the-art technology.But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei’s Ascend chips, would put them at risk of violating US export controls.In a statement Wednesday, Beijing’s commerce ministry described the warnings as “typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain”.China accused the US of “abusing export controls to suppress and contain China”.”These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China’s development interests,” the commerce ministry said.It also warned that “any organization or individual that enforces or assists in enforcing such measures” could be in violation of Chinese law.And it vowed to take “firm steps to safeguard its legitimate rights and interests” in response.- Chips on the table -The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models.And those found using Huawei’s Ascend chips without clearance from Washington, the guidance read, can face “substantial criminal and administrative penalties, up to and including imprisonment, fines, loss of export privileges, or other restriction”.The US commerce department said its policy was aimed at sharing American AI technology “with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries”.Previous US rules divided countries into three tiers, each with its own level of restrictions.Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive.Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.Speaking at Taiwan’s top tech show on Wednesday, Nvidia CEO Jensen Huang described US export controls on AI chips to China as a “failure”, since companies are using locally developed technology. “The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development,” Huang said.

Beijing condemned on Wednesday new US warnings on the use of AI chips made in China, vowing it would take steps against “bullying” efforts to restrict access to high-tech semiconductors and supply chains.Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing’s military systems and otherwise undermine American dominance in AI.US President Donald Trump’s administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence.Some US lawmakers feared the restrictions would have incentivized countries to go to China for AI chips, spurring the superpower’s development of state-of-the-art technology.But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei’s Ascend chips, would put them at risk of violating US export controls.In a statement Wednesday, Beijing’s commerce ministry described the warnings as “typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain”.China accused the US of “abusing export controls to suppress and contain China”.”These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China’s development interests,” the commerce ministry said.It also warned that “any organization or individual that enforces or assists in enforcing such measures” could be in violation of Chinese law.And it vowed to take “firm steps to safeguard its legitimate rights and interests” in response.The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models.The US commerce department said its policy was aimed at sharing American AI technology “with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries”.Previous US rules divided countries into three tiers, each with its own level of restrictions.Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive.Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.Speaking at Taiwan’s top tech show on Wednesday, Nvidia CEO Jensen Huang described US export controls on AI chips to China as a “failure”, since companies are using locally developed technology. “The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development,” Huang said.

European and Asian stocks closed higher on Tuesday while Wall Street equities retreated as markets monitored US Treasury yields amid worries about the US budget deficit.Major US indices spent the entire session in negative territory as the S&P 500 finished lower after six straight positive sessions.”The main driver is a consolidation day,” said Briefing.com analyst Patrick O’Hare. “The market has just been so red hot.”US President Donald Trump visited Capitol Hill Tuesday, where he faces challenges to unify a House Republican caucus that includes lawmakers from high-tax Northeastern states seeking a bigger tax deduction and members who are worried about increasing the deficit.Investors have also been fixated on higher yields in the Treasury market. Moody’s highlighted the deficit last week in a downgrade of the US credit rating.In Europe, London and Paris finished higher and Frankfurt’s DAX gained 0.4 percent to go past 24,000 points for the first time.Some of the rise stemmed from hopes of a European Central Bank interest rate cut next month, said Philippe Cohen, portfolio manager at Kiplink.Luxury clothing company Chanel waited until after Paris’s close to report a 28-percent drop in 2024 net profit.Asian stocks closed mostly higher, with Hong Kong rising more than one percent, buoyed by China cutting its interest rates to historic lows, and Tokyo also up.The Chinese central bank move, which had been expected, comes as officials battle to kickstart the economy amid trade tensions with the United States and a persistent domestic spending slump.Elsewhere, the Australian central bank cut its key interest rate to its lowest level in two years, citing steady progress in bringing inflation under control.In corporate news, billionaire Elon Musk said he was pulling back from spending his fortune on politics, and asserted the Tesla electric car company he runs was doing well despite blowback over his support of Trump.Aside from a Tesla sales decline in Europe, “we’re strong everywhere else,” Musk said.Chinese battery giant CATL ended its first day on the Hong Kong Stock Exchange more than 16 percent higher, having raised $4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle batteries sold worldwide.- Key figures at around 2030 GMT -New York – Dow: DOWN 0.3 percent at 42,677.24 (close)New York – S&P 500: DOWN 0.4 percent at 5,940.46 (close)New York – Nasdaq Composite: DOWN 0.4 percent at 19,142.71 (close)London – FTSE 100: UP 0.9 percent at 8,781.12 (close)Paris – CAC 40: UP 0.8 percent at 7,942.42 (close)Frankfurt – DAX: UP 0.4 percent at 24,036.11 (close)Tokyo – Nikkei 225: UP 0.1 percent at 37,529.49 (close)Hong Kong – Hang Seng Index: UP 1.5 percent at 23,681.48 (close)Shanghai – Composite: UP 0.4 percent at 3,380.48 (close)Euro/dollar: UP at $1.1284 from $1.1240 on MondayPound/dollar: UP at $1.3391 from $1.3361Dollar/yen: DOWN at 144.47 yen from 144.86 yenEuro/pound: UP at 84.26 pence from 84.13 penceWest Texas Intermediate: DOWN 0.2 percent at $62.56 per barrelBrent North Sea Crude: DOWN 0.2 percent at $65.38 per barrel

The EU said Tuesday that it was preparing to impose a two-euro ($2.25) flat fee on the billions of low-value packages that flood into the bloc each year, the great majority from China.Trade chief Maros Sefcovic told the European Parliament that e-commerce platforms would be expected to pay the levy per parcel, which aims to help the European Union tackle the challenges from the massive influx of inexpensive items.The fee would remove the customs-free status of packages worth less than 150 euros that are imported directly to consumers, often via platforms like Chinese-founded Temu and Shein.Parcels sent directly to warehouses where they are stored in the EU would face a lower fee of 50 cents, Sefcovic said.Last year, 4.6 billion such small packages entered the EU — more than 145 per second — with 91 percent originating in China. The EU expects the numbers to rise.Platforms, including Shein and Temu, are suspected by Brussels of not doing enough to prevent the sale of products that do not meet European standards.The EU also fears that many of the products imported into the 27-country bloc are unsafe, counterfeit and potentially even dangerous to consumers.Sefcovic said the figure represented a “completely new challenge to the control, to the safety, to making sure that the standards are properly checked of the products which are shipped to the European Union”.European retailers say they face unfair competition from overseas platforms, which they claim do not often comply with the EU’s stringent rules on products.- ‘Compensate cost’ -Sefcovic noted the “huge” workload for customs officials, “therefore I wouldn’t look at the handling fee as a tax, simply the fee to compensate the cost”.Brussels also hopes part of the revenues from the fee will go towards the EU budget.Paris is especially concerned about the issue: around 800 million such packages were shipped to France alone last year.Last month, France said it wanted to start charging non-EU online sellers a handling fee per package until 2028 — after which the EU is expected to phase out the customs-free status.Shein and Temu did not immediately respond to AFP requests for comment.The United States ended tariff exemptions earlier this month for goods shipped from China worth less than $800, which are to face a levy of 54 percent.

Wall Street stocks fell Tuesday, taking a breather from a recent market rally and digesting a US credit rating downgrade, while European and Asian shares rose as China cut interest rates to historic lows.The dollar strengthened a little against major currencies, just ahead of a meeting of G7 finance ministers in Canada that will discuss global economic conditions, as well as seeking a common position on Ukraine.The Chinese central bank move, which had been expected, comes as officials battle to kickstart the economy amid trade tensions with the United States and a persistent domestic spending slump.In New York, the S&P 500, Dow Jones and Nasdaq indices all shed less than half a percentage point at the start of trading. Analysts said investors did not seem overly alarmed by Moody’s downgrading the US credit rating last Friday, though it was weighing on the dollar and US bonds.”The downgrade news could have easily triggered more of a serious downside correction,” noted David Morrison, senior market analyst at Trade Nation. But “it looks as if sentiment is sufficiently resilient to take this punch on the nose in its stride,” he said.He added, that more generally, “it appears that there’s a general expectation that the US will sort out all its trade issues with its trading partners by early June, or by August in the case of China”.The US market focus on Tuesday was more on the fate of US President Donald Trump’s giant tax cut proposal, which he was discuss in a closed-door meeting with House Republicans. The legislation is expected to face a close vote later this week.In Europe, major stock markets were in positive territory in mid-afternoon trading, with the FTSE 100 up nearly 0.9 percent up. The Frankfurt DAX index topped 24,000 points for the first time, while Paris was also in the green. Asian markets closed higher, with Hong Kong rising more than one percent and Shanghai and Tokyo both up. Elsewhere, the Australian central bank cut its key interest to its lowest level in two years, citing steady progress in bringing inflation under control.In company news, Chinese battery giant CATL ended its first day on the Hong Kong stock exchange over 16 percent higher, having raised US$4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle batteries sold worldwide.- Key figures at around 1335 GMT -New York – Dow: DOWN 0.1 percent at 42,742.92 pointsNew York – S&P 500: DOWN 0.3 percent at 5,944.86New York – Nasdaq Composite: DOWN 0.5 percent at 19,128.80 London – FTSE 100: UP 0.6 percent at 8,775.23Paris – CAC 40: UP 0.8 percent at 7,943.25Frankfurt – DAX: UP 0.6 percent at 24,071.32Tokyo – Nikkei 225: UP 0.1 percent at 37,529.49 (close)Hong Kong – Hang Seng Index: UP 1.5 percent at 23,681.48 (close)Shanghai – Composite: UP 0.4 percent at 3,380.48 (close)Euro/dollar: UP at $1.1264 from $1.1244 on MondayPound/dollar: UP at $1.3371 from $1.3360Dollar/yen: DOWN at 144.60 yen from 144.87 yenEuro/pound: UP at 84.22 pence from 84.14 penceWest Texas Intermediate: DOWN 0.6 percent at $61.78 per barrelBrent North Sea Crude: DOWN 0.6 percent at $65.16 per barrel

Stock markets rebounded Tuesday following losses fuelled by US debt worries, with sentiment boosted by China cutting interest rates to historic lows and hopes of a Russia-Ukraine ceasefire.In Germany, the Frankfurt DAX index topped 24,000 points for the first time, while Paris and London also gained in early afternoon deals. Asian markets closed higher, with Hong Kong rising more than one percent and Shanghai and Tokyo both up. “Renewed hopes for a ceasefire between Ukraine and Russia, combined with another wave of stimulus for China’s economy has provided optimism,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.China’s central bank cut two key interest rates to record lows on Tuesday as officials battle to kickstart the economic amid trade tensions with the United States and a persistent domestic spending slump. The move came a day after data showed Chinese retail sales came in below expectations in April, highlighting a continued lack of confidence among consumers.The dollar slightly extended losses owing to Moody’s removal of the United States’ last gold standard sovereign bond rating over a debt pile that could balloon further.Following an initial sell-off, bonds stabilised and equities closed higher on Wall Street on Monday, as investors shrugged off the downgrade.”The renewed rush for safe havens sparked by the US credit rating downgrade, has reversed, with gold falling back as investors have more appetite for equities,” Streeter added.Elsewhere, the Australian central bank cut its key interest to its lowest level in two years, citing steady progress in bringing inflation under control.In company news, Chinese battery giant CATL ended its first day on the Hong Kong stock exchange over 16 percent higher, having raised US$4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle batteries sold worldwide.In Copenhagen, shares in renewables firm Orsted soared 15 percent after the Trump administration reversed an order to halt the construction of a huge wind firm off the New York coast by Norwegian energy company Equinor. The sector also got a boost from the Danish government earmarking billions in aid to stimulate investment in a huge wind project. – Key figures at around 1055 GMT -London – FTSE 100: UP 0.6 percent at 8,753.68Paris – CAC 40: UP 0.5 percent at 7,923.34Frankfurt – DAX: UP 0.5 percent at 24,059.26Tokyo – Nikkei 225: UP 0.1 percent at 37,529.49 (close)Hong Kong – Hang Seng Index: UP 1.5 percent at 23,681.48 (close)Shanghai – Composite: UP 0.4 percent at 3,380.48 (close)New York – Dow: UP 0.3 percent at 42,792.07 (close)Euro/dollar: UP at $1.1246 from $1.1244 on MondayPound/dollar: UP at $1.3364 from $1.3360Dollar/yen: DOWN at 144.57 yen from 144.87 yenEuro/pound: UP at 84.16 pence from 84.14 penceWest Texas Intermediate: DOWN 0.2 percent at $62.03 per barrelBrent North Sea Crude: DOWN 0.2 percent at $65.41 per barrel

US President Donald Trump’s real estate company is seeking to build a tower in Ho Chi Minh City, Vietnamese officials said on Tuesday, with his son due to scout locations this week.Authorities in Vietnam’s southern business hub said in a statement they met a representative of the Trump Organization and its local partner, the Kinhbac City Development Corporation (KBC).The statement said authorities had already conducted a field survey of two potential locations in the eastern part of the city on Monday and are scheduled to meet leaders of the Trump Organization on Thursday.The company, which builds luxury developments around the world, has come under scrutiny, with critics accusing Trump of leveraging his political position for personal financial gain.The state-controlled Tuoi Tre newspaper said the organisation’s senior vice-president Eric Trump, the US president’s second son, would lead the visit.It also said the delegation would visit a proposed location for “Trump Tower”.The Trump Organization did not respond immediately to AFP’s request for comment.Tuoi Tre said Eric Trump would also attend a ground-breaking ceremony on Wednesday for a $1.5 billion luxury resort and golf course developed by the Trump Organization and KBC.The 990-hectare golf complex in northern Hung Yen province outside Hanoi will feature a 54-hole course and residential villas, the newspaper said.Project director Charles Boyd-Bowman said in a meeting with Vietnam’s Prime Minister Pham Minh Chinh in March that his group aimed to finish the golf resort in March 2027, before Vietnam hosts the Asia-Pacific Economic Cooperation (APEC) summit.Vietnam and the United States are engaged in trade talks after President Trump threatened a 46 percent levy on Vietnamese goods as part of his global tariff blitz.Trump visited the Vietnamese capital in 2019 for his abortive second summit with North Korean leader Kim Jong Un.He described Hanoi at the time as an “incredible city”, praising Vietnam for “the job they’ve done — economic development”.