US-China Trade War News Live: China’s flexes power moves with new trade envoy, rising steel output, and Xi’s Southeast Asia message

Asia-Pacific markets mostly traded lower on Wednesday, following Wall Street’s overnight decline as investors weighed quarterly earnings and ongoing tariff concerns. Hong Kong’s Hang Seng Index fell 2.11%, and Mainland China’s CSI 300 dropped 0.84%.

Despite China’s economy expanding 5.4% in the first quarter—surpassing expectations—tariff threats from the U.S. continue to put a damper on investor sentiment. While Reuters economists had predicted a 5.1% year-on-year growth, UBS revised its GDP forecast for China, downgrading it to 3.4% for 2025 and 3% for the following year. UBS’s chief China economist, Tao Wang, estimates that U.S. tariff hikes could reduce China’s GDP growth by over 2 percentage points.

China’s crude steel production increased in March, driven by a surge in exports and lower raw material costs, which boosted margins. Mills produced nearly 93 million tons, a 4.6% rise from last year.

This pushed first-quarter production up 0.6%, totaling over 259 million tons. The result is likely to disappoint the government, which had pledged to address the nation’s steel glut by reducing output.

(From Bloomberg)

ICICI Bank has reduced its savings account deposit interest rate by 0.25%, following a similar move by larger rival HDFC Bank. The new rates, effective Wednesday, offer a 2.75% interest on savings balances up to Rs 50 lakh, aligning with HDFC Bank’s offering. For balances over Rs 50 lakh, the rate has been cut to 3.25%.

The move comes after the RBI’s consecutive rate cuts, which have pressured banks to lower their deposit offerings. State Bank of India (SBI), the country’s largest lender, currently offers 2.70% interest on savings deposits.

The ongoing rate reductions reflect the RBI’s push for faster transmission of its rate cuts to support economic growth, as banks face challenges in deposit growth and margin pressures.

The Steel Ministry Secretary stated that the majority of the increase in steel imports is from Japan, not China. He added that, given the current US-China tariff situation, a significant rise in steel imports is unlikely. While safeguard duty is being considered, the ministry is also focusing on the abuse of import licenses as part of its strategy.

(From CNBC-TV18)

China’s President Xi Jinping landed in Malaysia on Tuesday evening, kicking off a Southeast Asian tour aimed at sending a powerful message: Beijing is a more dependable trading partner than the United States, especially amid a bruising trade war with Washington.

This marks Xi’s first visit to Malaysia since 2013, following a successful trip to Vietnam, where he sealed multiple trade deals spanning artificial intelligence and rail development.

On arrival, Xi underscored the importance of “deepening high-level strategic cooperation,” which he believes benefits both nations and promotes regional and global stability, as reported by Malaysia’s Bernama news agency.

Xi’s visit, which includes stops in Malaysia, Thailand, and Cambodia, comes at a time when many ASEAN nations are increasingly frustrated by the US’s trade tactics, particularly the heavy tariffs imposed under President Trump.

The Steel Ministry Secretary has said the government is examining the Directorate General of Trade Remedies’ (DGTR) recommendation on safeguard duty. A decision is expected soon.

He clarified that the safeguard duty process is quasi-judicial in nature, making it difficult to comment on whether the rate will be revised from the current 12% to 20%.

The official also dismissed speculation of a steep hike, saying there is no merit in rumours suggesting the duty will be raised to 20%.

(From CNBC-TV18)

As part of a broader reshuffle, China has also removed Wang Zhizhong, head of the National Immigration Administration, and Vice Foreign Minister Chen Xiaodong from their posts.

(From CNBC)

China has appointed Li Chenggang as the new vice minister of commerce and top representative for international trade negotiations, replacing Wang Shouwen, according to an official statement released Wednesday. The shake-up comes as trade talks with Washington remain at a standstill.

(From CNBC)

Greenwoods Asset Management Ltd., a $20 billion Chinese hedge fund, has ramped up its investment in Hong Kong stocks following last week’s market dip, confident that Beijing’s policy support will propel a rebound and attract global investors increasingly wary of U.S. markets.

Gao Yuncheng, managing director at the firm, said Greenwoods has exited nearly all of its non-Chinese positions this year. The shift reflects growing faith in China’s consistent policy approach, especially as U.S. President Donald Trump escalates trade tensions globally.

“In a volatile market, the key is policy stability and rationality,” Gao said in an interview from Shanghai on Monday. “Unlike the U.S., where trade policy keeps changing, China has remained supportive—particularly since September.”

(From Bloomberg)

Hong Kong Post, the postal service in the semi-autonomous Chinese city, announced it will stop handling packages sent to or from the United States in response to the latest escalation in the trade war, according to CNN.

The decision follows U.S. President Donald Trump’s move last week to eliminate the “de minimis” exception for postal items shipped from Hong Kong to the U.S. Under the new rules, packages valued under $800, which were previously exempt from tariffs, will now face steep increases in fees.

Hong Kong’s government expressed strong disapproval, calling the U.S. actions “unreasonable” and accusing the U.S. of bullying and imposing tariffs abusively. It warned that the public should brace for “exorbitant and unreasonable fees” due to these changes.

Starting immediately, Hong Kong Post will cease accepting packages transported by sea, with air-borne shipments stopping on April 27. This comes after Trump signed an executive order in early April to triple tariffs on goods under $800 sent from China, including Hong Kong.

Originally set for a 30% tariff increase on May 2, the new executive order raises that rate to 120% per package, adding up to $200 in fees, which will likely impact consumers ordering from platforms like Shein, Temu, and AliExpress.

Oil was slightly higher:

• Brent crude rose 0.2% to $64.79/barrel.
• U.S. crude also gained 0.2%, trading at $61.42/barrel.

The U.S. dollar remained under pressure.

• Euro rose 0.3% to $1.1316.
• Yen edged up 0.3% to 142.84 per dollar.
• Bank of Japan Governor Kazuo Ueda hinted at a possible pause in rate hikes if U.S. tariffs hurt Japan’s economy.

U.S. Treasury yields held firm

• 10-year yield was steady at 4.325% (well below last week’s high of 4.592%).
• 30-year yield remained flat at 4.777%.