FirstFT: Sunak considers following US lead on Chinese language funding curbs


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Good morning. On his solution to Japan for the G7 summit, UK prime minister Rishi Sunak mentioned that he’s contemplating following Washington’s lead by imposing new restrictions on home firms making investments into important industries in China.

US president Joe Biden has been drawing up a plan to restrict investments in key elements of the Chinese language financial system by American firms that’s but to be introduced.

Sunak mentioned that any joint motion over more durable controls on western investments in China was nonetheless a piece in progress and wouldn’t be agreed on the Hiroshima summit given the US had not but a “totally shaped view”. However the prime minister added: “In broad phrases, completely, that will likely be one thing we will likely be speaking about.”

Putting additional export controls on China may even be mentioned by western allies on the G7 gathering with “financial safety” excessive on the agenda, Sunak mentioned.

  • UK-China relations: Rishi Sunak has backtracked on his promise to ban Confucius Institutes from working in Britain, within the newest signal of the UK prime minister making an attempt to enhance relations with Beijing.

Right here’s what else I’m watching at present:

  • Biden meets Kishida: With US president Joe Biden set to reach in Hiroshima for the G7 summit, he’s anticipated to fulfill prime minister Fumio Kishida.

  • China-Central Asia Summit: President Xi Jinping hosts a two-day summit with the leaders of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

  • Earnings: Alibaba, BT Group, Burberry, easyJet, Investec, Premier Meals and Walmart are among the many firms reporting outcomes at present.

5 extra prime tales

1. Ageing populations are hitting public funds the world over, as current rate of interest rises improve the affect of upper pensions and healthcare prices, score companies have warned. Moody’s, S&P and Fitch have all warned that worsening demographics are already hitting governments’ credit score scores with downgrades seemingly with out sweeping reforms.

2. Taiwan’s largest opposition celebration has picked Hou Yu-ih as its presidential candidate for elections in January. Hou, the favored mayor of the nation’s largest municipality, mentioned that whereas he opposes Taiwan independence, he additionally rejects rule by China underneath “one nation, two techniques”. Learn extra concerning the mayor of New Taipei Metropolis.

3. Joe Biden was “assured” the US might keep away from an unprecedented debt default, as he ready to go for Japan for the G7 summit on Wednesday. Biden additionally left the door open to assembly a Republican demand and including new work necessities to anti-poverty programmes. Listed below are the newest particulars on the fiscal stand-off, over which Biden plans to chop quick his journey to Asia.

4. South Korea is making an attempt to chop down on tech leaks to China with three leaks of main applied sciences within the first quarter of 2023. The nation’s authorities now has a database of chip engineers with a view to monitor their journey and has additionally tried to make it simpler to prosecute would-be leakers.

5. Japan has emerged from a technical recession on the again of a post-Covid restoration in family spending and tourism, sending shares to a brand new 33-year excessive in Asia’s most superior financial system. Economists warned, nonetheless, that the power of Japan’s restoration was modest.

Massive Learn

Dr Vershalee Shukla
Dr Vershalee Shukla runs a most cancers screening programme in Scottsdale, Arizona © FT montage: Ian Bott/Caitlin O’Hara/FT

Traders are pouring billions into firms that declare they’ll analyse DNA to detect most cancers early. The expertise has been hailed as “revolutionary” and “leading edge” by British and US well being chiefs, however some scientists query if it actually works.

We’re additionally studying . . . 

  • Flying excessive: Thomas Flohr aimed to upset the non-public jet trade. However after 19 years, the billions in debt held by his firm VistaJet are inflicting issues.

  • ‘Defining decade’: Hovering commodity costs have helped Australia’s Labor celebration steadiness the books, however the nation will quickly face a bunch of mounting payments.

  • Share buybacks: Firm repurchases of their very own inventory hit a worldwide report of $1.3tn final 12 months, however such schemes are not any substitute for considerate funding in development and respectable pay for employees, writes Brooke Masters.

Graphic of the day

Graphic on global temperatures

International temperatures are more likely to exceed 1.5C above pre-industrial ranges for the primary time in human historical past throughout the subsequent 5 years, the World Meteorological Group has mentioned in its newest annual evaluation.

Take a break from the information

Folks have been anticipating the cultural renaissance of the snoozy island nation of Singapore for almost 15 years. Is it lastly right here?

Extra contributions by David Hindley and Gary Jones

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