In Depth: Myanmar’s Jade Trade Shattered by Earthquake

New Huawei EV: Huawei Technologies Co. Ltd. and state-owned SAIC Motor Corp. Ltd.’s new electric vehicle (EV) brand will debut its first model this fall, joining China’s crowded auto market. Shangjie, unveiled by Huawei’s consumer business group chairman Richard Yu at a Shanghai launch event on Wednesday, is the fifth under Huawei’s Harmony Intelligent Mobility Alliance. This is Huawei’s first partnership with SAIC Motor, once China’s top carmaker by sales. The automaker has so far invested 6 billion yuan in the new venture and has assembled a dedicated 5,000-person team. Shangjie will be positioned as a technology-forward, fashion-conscious brand to expand the reach of Huawei’s Harmony alliance and boost sales, Yu said. The move marks another major step in Huawei’s auto ambitions as the company evolves from a supplier into a deeper participant in China’s automotive value chain, where smart features and connected systems are fast becoming core to competition.

Chinese stock outlook: Despite the escalating U.S.-China trade war, JPMorgan Asset Management predicts Chinese stocks, including the mainland and Hong Kong markets, will outperform many other Asian markets in the second quarter. Tai Hui, chief market strategist for Asia-Pacific at the American firm, said during a group press interview Wednesday that he was confident in Beijing’s fiscal stimulus plan to support growth and highlighted the potential for monetizing artificial intelligence (AI). Tai said that China’s strong first-quarter economic data were distorted by front-loading exports ahead of U.S. tariff hikes. Meanwhile, other major exporters in the region such as Malaysia, Thailand and Vietnam will be more affected by the tariffs as their export products are not sufficiently exclusive, giving them limited pricing power and making it difficult to pass on the impact of the tariffs to customers. At the same time, JPMorgan Asset Management suggested investors reduce holdings in U.S. stocks and look for opportunities in European stocks.

Insurer investment plan: China has approved a subsidiary of Taikang Insurance Group Inc. to set up a private fund firm, as part of the pilot program for boosting insurers’ long-term investment in the Chinese stock market. The move follows a commitment by Beijing in January to inject at least 100 billion yuan in insurance funds into the stock market in the first half of this year, one of a variety of state-backed initiatives to increase long-term investment in Chinese equities. These are expected to add at least several hundred billion yuan in long-term capital to the stock market. The mainland market has had a tumultuous start to the year, posted gains during the first quarter after a weak January, then took a battering this month during the U.S. tariff onslaught. Major indexes have since bounced back close to the level at the start of the year.

Beijing open to tariff talks: China remains open to economic and trade consultations with the U.S., the commerce ministry said Thursday. But the responsibility lies with the U.S. to resolve the matter as the imposition of tariffs was initiated solely by Washington, the ministry spokesperson He Yongqian said. The announcement comes a day after the White House called on China to engage in trade negotiations, adding that Beijing should reach out first as “China wants what we have ... American consumers.” China urged the U.S. side to immediately cease its tactics of “maximum pressure, coercion and blackmail,” and to resolve their differences through dialogue on an equal footing, based on mutual respect, said He. The ministry and its U.S. counterparts have consistently maintained communication at the working level, He added. In the meantime, Chinese goods imported to the U.S. face a 145% tariff and American goods entering the Chinese mainland are being hit with a 125% duty.