Global Pulse

分类： business

  • A new Swatch model is introduced, and a case study in overexcited ‘drop culture’ plays out

    A new Swatch model is introduced, and a case study in overexcited ‘drop culture’ plays out

    Across major global cities, chaotic scenes unfolded this weekend over the launch of Swatch’s highly anticipated collaboration with luxury watchmaker Audemars Piguet, the Royal Pop bioceramic pocket watch. From violent crowd control measures in France to fistfights in Italy and all-night snaking lines outside retail locations in London, Singapore, and New York, the launch has become the latest flashpoint for modern “drop culture” where coveted limited-edition status symbols collide with lucrative resale market opportunities.

    At the center of the global mania is a timepiece that retails for approximately $400, but was being flipped within hours for thousands of dollars on secondary platforms. By the first business day after the launch, dozens of Royal Pop listings had already appeared on eBay, with one seller advertising an “IN HAND” unit for 3,055.58 British pounds, equal to more than $4,000, and inviting best offers from interested buyers.

    This frenzy marks a noticeable shift from the hyped product drops that defined Swatch and other major brands over the past generation, according to industry analysts. Pierre-Yves Donze, a business history professor at Osaka University Graduate School of Economics, explained that unlike earlier drops where buyers pursued collectibles out of genuine fandom, today’s rush is almost entirely driven by the prospect of quick profit.

    “It looks like people got crazy to get a Royal Pop to make money through resale, not because they are fans of the Swatch,” Donze noted. “People want money, especially. Royal Pop is not like a cool product, but a way to make easy money.”

    Swatch, which has decades of experience leveraging hype around new product launches, moved quickly to calm the frenzy. The Swiss watchmaker confirmed Monday that there is no supply shortage of the Royal Pop, pushing back against the narrative that the timepiece is extremely limited. The company noted that launch-day disruptions were only reported in roughly 20 of its 220 global stores that rolled out the new watch, attributing the issues to unexpectedly large turnout that overwhelmed shopping mall infrastructure, not limited stock.

    Social media has amplified the hype dramatically: the company reported that content tagged for the Royal Pop has accumulated more than 11 billion views across major platforms since the launch was announced. This mirrors the 2022 MoonSwatch launch, a collaboration between Swatch and its sister luxury brand Omega that sparked similar global in-store rushes amid pandemic restrictions. Swatch’s history of hype dates all the way back to the 1980s, when it revolutionized the watch industry with affordable, mass-produced, fashion-forward timepieces that broke from the tradition of expensive heirloom watches.

    This year’s launch brought far more disruption than many industry observers expected. In London, the iconic Carnaby Street and Oxford Street Swatch stores saw crowds of dozens of people block sidewalks ahead of opening Sunday, prompting local police to close all Swatch locations across London and multiple other U.K. cities. Similar disruptions were reported across Europe and North America: stores were shuttered across the Netherlands, and New York’s Times Square location developed what attendees described as a “mosh pit” vibe.

    In France, the situation escalated to require riot control measures. The French national police service confirmed that officers deployed tear gas grenades and spray to disperse unruly crowds outside multiple Swatch boutiques. At the large Westfield Parly 2 shopping mall west of Paris, television footage showed officers in riot gear and helmets stationed outside the shuttered Swatch outlet. In Lyon, officers used a tear gas grenade after the crowd ignored repeated orders to disperse from the city’s central Bellecour Square, while municipal police in Montpellier deployed tear gas spray. Swatch’s French division announced via Instagram that six stores would close for the day “because of public security considerations.”

    Unlike many modern brands that have moved hyped product drops entirely online to avoid safety and liability risks, Swatch chose to release the Royal Pop exclusively through in-store retail locations, a decision that industry critics say amplified the frenzy. The exclusive in-person model created perfect conditions for resellers to monopolize initial stock, driving up the potential profits for those who managed to secure a watch early. Reports from launch weekend noted sporadic injuries, multiple arrests, and minor property damage connected to the overcrowded crowds.

    London-based fashion and cultural critic Odunayo Ojo noted that most streetwear and sneaker brands abandoned in-person exclusive drops years ago over safety concerns. “Either Swatch ‘didn’t get the memo,’ he said, underestimated the draw to the new product or strategically hyped the drop to pump sales. Swatch already has a track record of understanding how these things go,” Ojo explained on his YouTube channel Fashion Roadman.

    By Monday, the long lines outside most Swatch locations had dissipated, with onlookers in Paris noting that most initial stock had already sold out. In a public reassurance to consumers, Swatch confirmed that the Royal Pop will remain available for purchase through retail locations for months to come, with new shipments already en route to restock stores around the world.

  • Beijing’s zero-tariff policy in Africa hailed

    Beijing’s zero-tariff policy in Africa hailed

    When China rolled out its expanded zero-tariff policy for African exports earlier this month, the move was far more than a routine trade adjustment — it marked a landmark step forward in equitable South-South cooperation that experts say could reshape Africa’s position in global trade and value chains.

    Implemented on May 1, the new policy extends duty-free access to all 53 African nations that maintain diplomatic relations with China, expanding on a 2024 framework that only covered the continent’s 33 least developed countries. The policy change was the central focus of a recent online seminar hosted by the Africa-China Centre for Policy and Advisory based in Ghana, where trade and international relations experts broke down the initiative’s long-term potential and remaining challenges for African economies.

    Unlike unilateral preferential trade schemes offered by some Western powers, Tang Xiaoyang, chair and professor of the Department of International Relations at Tsinghua University, emphasized that China’s zero-tariff arrangement carries no binding political conditions. Framing the policy as a long-term framework for collaborative growth between developing nations rather than a short-term aid package, Tang noted that its core aligns with the core South-South principles of equality and mutual benefit. While early gains will likely flow to African agricultural exports — including coffee, fresh fruits, and seafood — the overarching goal is to drive broader industrial development and deeper integration of regional economies into Sino-African value chains, he added.

    The expansion adds major African economies including Kenya, South Africa, Nigeria, Egypt, and Ghana to the zero-tariff scheme, all of which already boast relatively mature export and manufacturing sectors. Tang explained that these economies are well-positioned to drive regional industrial progress via supply chain linkages and cross-border investment spillovers that benefit smaller neighboring nations.

    South African international affairs expert Mikatekiso Kubayi framed the policy as a critical opportunity for African countries to build economic self-reliance and accelerate industrialization at a time of growing global economic volatility. He pointed to the recent shipment of South African citrus to China under the new rules as an early indicator of the tangible market access gains the policy can deliver for African producers. Beyond direct trade benefits, Kubayi noted that deeper collaboration with China in research, technology, and innovation can help African economies evolve from passive importers of foreign technology to active, valued contributors to global production networks.

    While most experts expressed broad optimism about the policy’s transformative potential, many also stressed that duty-free access alone will not automatically translate to sustained development gains for African nations. Long-term success, they agree, hinges on African governments’ ability to address longstanding structural barriers that limit productive capacity and competitiveness.

    Wang Jinjie, a research professor at Peking University’s National School of Development and Institute of Area Studies, noted that the primary barrier facing African economies today is no longer access to global markets — it is the capacity to turn open market access into durable, inclusive industrial growth. “Opportunity doesn’t equal a development outcome by itself,” she explained, adding that most African nations continue to grapple with systemic constraints including underdeveloped logistics networks, limited local processing capacity, widespread skilled labor shortages, exorbitant transportation costs, and inconsistent quality control frameworks.

    Wang highlighted people-centered development initiatives emerging from China-Africa cooperation as a promising pathway to address these gaps, pointing specifically to the growing network of Luban Workshops across the continent. These vocational training programs, developed through bilateral cooperation, equip young African workers with technical skills tailored to growing sectors including manufacturing, agribusiness, and emerging green and digital industries.

    Rosemary Mnongya, a senior researcher at the Africa-China Centre for Policy and Advisory, echoed this outlook, urging African governments to reframe the policy opportunity to shift “from access to advantage.” To do this, she said, nations must prioritize local value addition and cross-border regional industrial cooperation, leveraging the African Continental Free Trade Area (AfCFTA) framework to build integrated regional production networks that can compete more effectively in the Chinese market. For example, Mnongya pointed to value-addition models: processing Tanzanian avocados into higher-value avocado oil, or weaving Tanzanian cotton into fabric for Ethiopian garment manufacturers, before exporting the finished product to China under the zero-tariff scheme, to capture far greater economic benefit than exporting raw materials alone.

  • Petrochemical crunch hits supply chains across Asia

    Petrochemical crunch hits supply chains across Asia

    More than 11 weeks into the ongoing US-Israeli military campaign against Iran, widespread economic disruption is rippling through the interconnected industrial supply chains of Asia, driven by a rapidly deepening shortage of critical petrochemical products, most notably naphtha. Before the outbreak of hostilities, nearly all naphtha exported from Middle Eastern producers was destined for Asian markets, according to Darryl Xu, principal analyst for base chemicals and feedstocks at ICIS Analytics based in Singapore. Middle Eastern suppliers account for roughly 65% of all naphtha imports into Asia, but shipping disruptions along the Strait of Hormuz have halted the vast majority of these cargoes, and alternative supply sources are unable to fully offset the gap, Xu explained. Naphtha, a fundamental derivative of crude petroleum, is a core input for manufacturing solvents and the resin used in commercial printing inks. Persistent supply shortages have the potential to disrupt sectors spanning food packaging, consumer goods, medical equipment manufacturing and infrastructure construction materials across the region. Last week, major Japanese snack manufacturer Calbee announced it would transition packaging for a selection of its potato chip lines to simplified black-and-white packaging, labeled explicitly as “packaging for conserving petroleum materials.” “The company will revise the packaging specifications of some of its products as an interim measure, with the highest priority placed on ensuring a stable supply of products,” Calbee stated in an official release Tuesday. Despite these industry adaptations, Japanese Deputy Chief Cabinet Secretary Kei Sato told reporters the Japanese government had not received any reports of immediate, widespread disruptions to naphtha or printing ink supplies, and maintains the country has secured sufficient stockpiles to meet near-term demand, Reuters reported. In the Republic of Korea, growing anxiety is mounting across the food packaging sector, as the national government works to implement emergency measures to stabilize volatile supplies. Local industry leaders report that raw material costs have surged 40 to 50% since the outbreak of the conflict. The ROK and Japan rank among the most vulnerable Northeast Asian economies to naphtha supply shocks, explained Kwon Seok-joon, an associate professor of chemical engineering at Sungkyunkwan University. In the first half of 2026, roughly 45 to 47% of the ROK’s total naphtha supply is imported, and more than three-quarters of those imported volumes originate from Middle Eastern producers, Kwon noted. Beyond the immediate shipping disruptions, the greater long-term risk stems from the structural vulnerabilities inherent in the ROK’s petrochemical sector, which is structured around naphtha refining, Kwon added. While Japan also faces high exposure to supply disruptions, the ROK’s vertically integrated petrochemical industry is far more dependent on naphtha-based refineries, leaving downstream manufacturing sectors including plastics, rubber, packaging and paints disproportionately exposed to shocks. “If the current situation continues for several more months, the sustainability of these industries could become very fragile,” Kwon warned. Even if full navigation through the Strait of Hormuz is restored immediately, naphtha supplies will not rebound quickly to pre-conflict levels, due to accumulated shipping backlogs, permanently elevated freight and insurance costs, and mismatched contracting terms between existing Middle Eastern supply agreements and newly sourced alternative cargoes, he added. Following the outbreak of the crisis, buyers are now paying price premiums of up to $150 per metric ton to secure available naphtha cargoes, Xu said, while major Asian producers of plastics and olefins — the foundational building blocks of the global petrochemical sector — have been forced to cut operating rates to minimum levels. Even at reduced output, a single large olefins plant still requires more than 150,000 tons of naphtha to maintain operations. Kwon projected that the ongoing crisis will likely compel policymakers and industry leaders across major Asian economies to implement long-term structural adjustments to reduce reliance on single-source Middle Eastern energy and petrochemical inputs.

  • Anglo American sells central Queensland coal mines to UK company

    Anglo American sells central Queensland coal mines to UK company

    Global mining giant Anglo American has announced a landmark divestment deal, agreeing to sell its entire portfolio of five steelmaking coal mines in Queensland, Australia, to United Kingdom-based mining firm Dhilmar for a total consideration of up to $5.43 billion.

    The transaction covers a broad range of assets beyond just the mining operations, including the major producing mines of Moranbah North and Grosvenor, the Capcoal project, Roper Creek, and the Dawson South and Theodore South joint venture holdings. It also transfers ownership of the townsite of Middlemount, where Anglo American has long provided core community infrastructure: employee housing, a local shopping center, childcare facilities, and a public medical center.

    In a statement released Monday, Anglo American Chief Executive Duncan Wanblad highlighted Dhilmar’s deep industry credentials to oversee the assets going forward. “Dhilmar’s leadership brings considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada,” Wanblad said. “We will work together with the Dhilmar team and with our workforce, local communities, government, customers, and partners to ensure a successful transition.”

    The deal is not yet final, however. It remains subject to standard pre-closing conditions, including mandatory competition and regulatory approvals, as well as pre-emption rights held by existing joint venture partners.

    This transaction marks a second attempt to sell the Queensland coal portfolio after a previous deal with U.S. mining firm Peabody Energy collapsed in 2024. Peabody walked away from the original acquisition agreement citing a “material adverse change” to the assets following a fire incident at the Moranbah North mine. Anglo American has disputed Peabody’s cancellation, arguing the withdrawal was wrongful.

    The company confirmed Monday that it is continuing to pursue arbitration proceedings against Peabody related to the terminated 2024 purchase agreement. In a regulatory filing with the London Stock Exchange, where Anglo American is publicly listed, the firm reaffirmed its position: “Anglo American remains confident that the incident at Moranbah North relied upon by Peabody in support of its purported termination of its agreement did not constitute a material adverse change.”

    Anglo American noted that proceeds from the sale to Dhilmar will be allocated to reducing the company’s net debt, supporting its broader balance sheet restructuring strategy.

  • A reversal in oil prices helps stock markets worldwide to steady

    A reversal in oil prices helps stock markets worldwide to steady

    Global financial markets regained a measure of calm on Monday, following a turbulent overnight session marked by sharp swings in crude oil prices fueled by escalating geopolitical tensions between the U.S. and Iran. After a dramatic spike that sent Brent crude as high as $112 per barrel overnight, oil prices retreated by Monday morning, easing mounting pressure on bond markets and limiting steep losses for equities across the globe.

    Geopolitical uncertainty in the Persian Gulf has been the key driver of recent oil volatility, as the ongoing conflict with Iran has trapped dozens of oil tankers in the region, disrupting global crude supplies and pushing prices far above pre-war levels of roughly $70 per barrel. The spike was amplified Sunday after former U.S. President Donald Trump issued a threatening public statement to Iran on his social media platform, warning “the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them.” By mid-morning Monday, however, crude prices pulled back, with Brent crude settling at $107.84 per barrel, a 1.3% drop from Friday’s close, as markets held out fragile hope for a negotiated deal that would reopen global oil flows. Even with the retreat, prices remain more than 50% higher than they were before the conflict broke out.

    The pullback in oil helped reverse early losses for European equities, which had tumbled at the opening of trading. France’s CAC 40 index swung from an early 1.2% loss to close up 0.3% by the end of the session. Most Asian markets had already closed for the day before the oil retreat, with Japan’s Nikkei 225 finishing 1% lower and Hong Kong’s Hang Seng Index down 1.1%. On Wall Street, trading remained muted in early morning action. The S&P 500 edged down 0.1%, holding just below the all-time high it set the previous week. The Dow Jones Industrial Average dipped 64 points, or 0.2%, at 9:35 a.m. Eastern Time, while the Nasdaq Composite gained 0.1% and stayed near its own recent record high.

    The recent weeks’ biggest market shifts have played out in global bond markets, where rapidly climbing yields have put intense pressure on economies and equity markets worldwide. Higher yields push up borrowing costs for households and businesses, a dynamic U.S. homebuyers have already experienced through sharply elevated mortgage rates. For the tech sector, higher interest rates also threaten to derail the massive capital spending plans for artificial intelligence infrastructure that have driven much of U.S. economic growth in recent quarters, as building large-scale AI data centers requires billions in borrowed capital.

    Oil price volatility has been the top contributor to rising bond yields, as markets fear sustained high crude will keep inflation elevated longer than expected. The 10-year U.S. Treasury yield edged down to 4.58% on Monday, down just one basis point from Friday’s close and well below the 4.63% peak it hit during overnight oil’s peak. Meanwhile, the 10-year Japanese government bond yield climbed toward levels not seen since the late 1990s, part of a global trend of rising yields driven by inflation fears. Analysts note that persistent high inflation could force major central banks to not only delay planned interest rate cuts but also consider additional rate hikes — a move that would tame inflation but at the cost of slowing economic growth and dragging down asset prices. Strong recent U.S. economic data and growing concerns over the U.S. federal government’s expanding debt load have also put additional upward pressure on yields.

    A handful of individual stocks posted notable moves on Monday driven by corporate news. Dominion Energy jumped 10.5% after NextEra Energy announced it would acquire the company in an all-stock deal that will create the world’s largest regulated electric utility by market capitalization. NextEra Energy fell 4.4% following the announcement. Boston Scientific gained 2% after confirming it would accelerate its share repurchase program, spending an extra $2 billion to reach $5 billion in total buybacks by the end of June, a move that directly returns capital to investors and lifts per-share earnings. Delta Air Lines rose 2.1%, lifted both by lower oil prices and news that Berkshire Hathaway, Warren Buffett’s famed value investment firm, had purchased more than $2.6 billion in additional Delta stock.

    Geopolitical risks remain top of mind for investors, after a drone strike targeted the United Arab Emirates’ only nuclear power plant on Sunday. The attack sparked a small fire on the facility’s perimeter but caused no injuries or radiological leaks, though it underscored the fragility of the current ceasefire and the risk of a broader regional escalation.

    This week is packed with high-stakes corporate earnings reports that will give markets more clarity on the health of key sectors. The most anticipated release comes from chip giant Nvidia, which is set to report quarterly results on Wednesday. The company has consistently beaten analyst expectations in recent quarters and forecast stronger AI-driven growth than Wall Street projected, and a continued strong performance will be needed to keep the AI-led stock rally on track. Major retail giants including Target, Home Depot, and Walmart will also release their latest quarterly results throughout the week, offering insights into the state of U.S. consumer spending.

  • ASX falls to seven-week low, miners and industrials main draggers

    ASX falls to seven-week low, miners and industrials main draggers

    A sharp downturn has dragged Australia’s benchmark sharemarket to its lowest point in seven weeks, driven by skyrocketing global crude oil prices that have punished oil-reliant industries and triggered widespread selloffs across multiple blue-chip and mid-cap stocks on Monday.

    The S&P/ASX 200 closed the trading session at 8,505.3 points, marking a 1.45% drop that was twice as steep as pre-market futures had forecast. Out of the benchmark index’s 11 industry sectors, only energy managed to end the day in positive territory, while materials and industrial firms recorded the largest losses. The broader All Ordinaries index followed a similar trajectory, falling 1.52% for the day.

    Multiple individual stocks suffered dramatic single-day declines, driven by company-specific challenges alongside broader market headwinds. Pallet and supply chain giant Brambles led the blue-chip losses, plummeting 20.2% after issuing an $84 million revenue downgrade. The company disclosed that widespread labor shortages have left it unable to repair and refurbish pallets to the strict specifications required for automated robotic handling systems – robots cannot accommodate splintered, chipped, or bent pallets, disrupting Brambles’ core CHEP operations. Brambles is the latest in a string of major Australian blue chips, including Cochlear, Commonwealth Bank, and CSL, to see major selloffs in recent weeks.

    Other notable losers included Singapore-based telco holding company Tuas, which collapsed 62.8% after Singaporean authorities blocked a planned acquisition and revealed one of the firm’s local subsidiaries may have been illegally using unapproved radio frequencies. Agribusiness wholesaler Elders dropped 22.9% following the release of its half-year results, where the company reaffirmed that elevated diesel prices would continue to hit its bottom line. While high wool and livestock prices and favorable growing conditions in South Australia and Victoria have offset some losses, Elders is still grappling with severe drought and reduced crop yields in northern New South Wales, with diesel costs showing no signs of easing.

    The oil price surge that shook market sentiment on Monday saw Brent crude climb above $110 per barrel, while West Texas Intermediate crossed the $107 per barrel threshold. This rally delivered clear gains to domestic energy producers: Woodside Energy rose 2.9%, Santos added 2.7%, Beach Energy gained 2.7%, and Viva Energy closed up 1.3%.

    In contrast, 36 of Australia’s 40 largest mining firms dropped by at least 1.3% on the day. BHP fell 2.8%, Fortescue Metals Group declined 2.9%, Rio Tinto slid 3.6%, and Northern Star Resources shed nearly 2.5%. Rising bond yields and persistent inflation concerns also weighed heavily on gold-focused mining equities, with Newmont dropping 4.2% and Greatland Resources falling 5.9%. The lone gainer among the 40 largest miners was Lynas Rare Earths, which rose 5.5% after federal Treasurer Jim Chalmers ordered Chinese shareholders to divest their holdings in rare earth miner Northern Minerals, clearing a path for increased market access for Australian producers.

    Justin Lin, a strategist at Global X ETFs, noted that the ASX materials sector has actually outperformed financials for nine consecutive months (excluding volatility tied to geopolitical tensions around Iran), marking the longest streak of relative outperformance in more than two decades. This run has been fueled by a range of tailwinds, including a low post-pandemic base, Western-led supply chain restructuring away from China, and surging global demand for critical minerals used in semiconductor manufacturing. “Smart money has clocked this trend for a while now,” Lin explained. “Due to the significant overweight position of financials within the domestic index, the road ahead for Australian equities could still prove challenging, even with materials acting as a ballast against weakening conditions in the local economy.”

    The Australian dollar also saw extreme volatility in May, completing what Westpac currency analysts described as a “full round trip” that erased almost 1.4 US cents of earlier gains. After trading comfortably above the US$0.72 mark for much of the month, the currency suffered a bruising pullback to end last week. Westpac analysts noted in a research note that the ongoing global bond selloff is now clearly spilling over into risk-sensitive assets, leaving the Australian dollar facing a packed week of market events with significant uncertainty to price in.

  • China agrees to boost trade for US ag products such as beef and poultry following Trump-Xi summit

    China agrees to boost trade for US ag products such as beef and poultry following Trump-Xi summit

    WASHINGTON (AP) – Two days after U.S. President Donald Trump concluded a high-stakes negotiating summit in Beijing aimed at mitigating economic harm to American agricultural producers from the 2024 trade war he initiated, the White House made a major announcement Sunday: China has committed to scaling up purchases of key U.S. farm products including beef and poultry, hitting an annualized purchase target of $17 billion per year starting in 2026, with this level maintained through 2027 and 2028.

    According to the White House’s statement, the agreement will restore full Chinese market access for U.S. beef and resume Chinese imports of U.S. poultry from states certified as avian influenza-free by the U.S. Department of Agriculture (USDA). This new framework builds on existing soybean purchase commitments China made last year, offering a much-needed lifeline to American farmers who have lost critical export volume after China sharply cut agricultural imports amid the trade conflict.

    American agricultural producers have faced overlapping economic pressures in recent months. Beyond the trade war that erased China as a major export market for soybeans and other commodities, new disruptions stemming from the U.S.-Israel military campaign against Iran have restricted shipping through the Strait of Hormuz, a critical global trade chokepoint. This disruption has shrunk global fertilizer supplies and driven input prices to record highs, squeezing farm profit margins even further.

    As of Sunday, Beijing had not issued immediate public confirmation of the specific $17 billion purchase terms outlined by the White House. On Saturday, China’s Ministry of Commerce released a more general statement confirming that the two sides had reached agreement to “resolve or make substantial progress toward resolving certain non-tariff barriers and market access issues” for agricultural products.

    Per the Chinese commerce ministry’s spokesperson, the U.S. has agreed to actively address Chinese regulatory concerns covering detained Chinese dairy and seafood shipments, U.S. import rules for Chinese potted bonsai, and Chinese requests for official recognition of Shandong Province as an avian influenza-free zone. In turn, China will actively advance U.S. priorities including registration approvals for American beef processing facilities and market access for U.S. poultry from eligible states. The two sides also committed to expanding overall agricultural and general trade through reciprocal tariff cuts for an unspecified “specific range of products.”

    In the years since the trade war escalated, China has systematically diversified its sources of imported agricultural commodities to protect its own food and national security, shifting growing volumes of purchases to Brazil, Argentina and other supplier nations instead of the U.S. USDA data underscores the scale of the drop-off in U.S. agricultural exports to China: after peaking at $38 billion in total agricultural imports in 2022, Chinese purchases fell to just $8 billion in 2025. Soybean imports alone dropped from nearly $18 billion in 2022 to only $3 billion in 2025.

    After Trump hiked tariffs on Chinese goods last year, China — long the largest foreign buyer of U.S. soybeans — halted nearly all new soybean purchases, leaving U.S. soybean producers, the hardest-hit segment of American agriculture, facing massive surplus stock and depressed prices. The new announcement builds on an October trade truce between Trump and Chinese President Xi Jinping, where China first agreed to resume soybean purchases, with an initial commitment of 12 million metric tons for the 2025-2026 marketing year and 25 million metric tons annually for the following three years.

    For the U.S. beef sector, the agreement will re-open the Chinese market to hundreds of U.S. processing facilities, including major operations run by industry giants Tyson Foods and Cargill. China allowed licenses for hundreds of U.S. beef plants to expire last year, pushing total U.S. beef export value to China down to less than $500 million in 2025, a sharp drop from the 2022 peak of $2.14 billion. U.S. poultry exports to China have followed a similar trajectory, falling from over $1 billion in 2022 to just $286 million in 2025. It remains unclear what the actual annual export volume for U.S. beef and poultry will be under the new agreement.

    Beyond agricultural trade, the Beijing summit focused on identifying new areas of bilateral economic cooperation, including expanded market access for U.S. firms in China and increased Chinese investment in U.S. domestic industries. The two leaders announced plans to establish two new bilateral coordinating bodies: a Board of Trade to manage trade in “non-sensitive goods” and address specific tariff reduction issues, and a Board of Investments to facilitate dialogue on cross-border investment issues. Both sides have offered few details on how these new bodies will differ from existing bilateral trade dialogue frameworks. The commerce ministry spokesperson noted that the two sides agreed “in principle” to reciprocal tariff cuts of equivalent scale for products of mutual concern.

    Meeting with U.S. business leaders accompanying Trump on the trip, including Cargill CEO Brian Sikes, Xi emphasized that China’s door of opportunity for international business will continue to widen.

    Soybeans, used heavily for livestock feed and biofuel production in China, have long been the top U.S. agricultural export to the country, accounting for roughly half of all U.S. agricultural exports to China in past years. As of May 7, USDA data shows U.S. exports of soybeans to China have reached 10.9 million metric tons, putting China on track to meet its original October commitment by the end of the current marketing year on August 31. That volume remains far below the 25 million to 30 million metric tons China purchased annually before the latest escalation of the trade war.

    Before Trump’s originally scheduled Beijing trip in late March — postponed amid the outbreak of the Iran conflict — the American Soybean Association publicly urged the president to prioritize expanded soybean access in trade talks with Xi. Association president Scott Metzger said Thursday that the group is pushing for additional soybean purchases in the current marketing year alongside steady progress on meeting long-term purchase commitments. “Greater certainty and consistency in the marketplace help provide farmers with the confidence they need as they make decisions for the year ahead,” Metzger said.
    AP journalist Kevin Vineys contributed reporting to this article.

  • Swatch shuts stores after crowds queue for new watch

    Swatch shuts stores after crowds queue for new watch

    A highly anticipated limited-edition watch collaboration has sparked chaotic scenes across the globe, forcing Swiss watch giant Swatch to close all its participating retail locations across the United Kingdom over public safety concerns. The unprecedented demand for the new Royal Pop pocket watch, created in partnership with luxury Swiss watchmaker Audemars Piguet, drew hundreds of eager collectors and fans to Swatch stores over the weekend, leading to overcrowding, reported aggression, and widespread store closures.

    The collaboration, which launched eight distinct watch models priced at an accessible £335, was billed by Swatch as a disruptive, groundbreaking partnership between two iconic Swiss watchmaking brands. Drawing inspiration from the mid-20th century Pop Art movement, the collection is described by the company as a fusion of joyful, bold aesthetic and high-end fine watchmaking craft. However, the extreme accessibility of the price point, paired with the limited production run, created a feeding frenzy among watch enthusiasts and resellers alike. Within days of the launch announcement, resold examples of the Royal Pop watch were already listed on secondary online marketplaces for as much as £16,000 – a nearly 4,700% markup from the original retail price.

    In the UK, the scale of demand caught many by surprise. On Saturday morning, hundreds of people queued outside Swatch’s Liverpool One location on Paradise Street, with some committed fans camping out for two full days to secure a spot near the front of the line. By 7 a.m. BST, Merseyside Police received reports of a group of men acting aggressively and making threats toward other shoppers in the queue. Officers quickly responded to the scene, and the crowd dispersed shortly after the intervention.

    Following the incident, and citing growing safety risks for both customers and staff, Swatch announced it would keep all of its participating UK branches – including locations in London, Birmingham, Cardiff, Glasgow, Liverpool, Manchester, and Sheffield – closed for the duration of the launch. The brand has not yet announced when or if the stores will reopen for sales of the limited collection.

    The chaos unfolding in the UK is not an isolated incident. Watch enthusiasts around the world have been lining up for days, even weeks, to get their hands on one of the limited watches. In New York, fans camped outside a Swatch store for a full week, with local reports noting that several people experienced health issues during the prolonged wait in public. Queues also formed outside the brand’s Tokyo location, its global headquarters in Biel, Switzerland, and the Dubai Mall launch event in the United Arab Emirates was ultimately cancelled due to the unexpectedly massive turnout of hopeful buyers.

    BBC News has reached out to Swatch for additional comment on the store closures and future plans for the collection, and has not yet received a response.

  • Argentina’s beef consumption falls to lowest level in 20 years as prices soar

    Argentina’s beef consumption falls to lowest level in 20 years as prices soar

    BUENOS AIRES, Argentina — As dawn breaks at 6 a.m. over the Mataderos neighborhood of Argentina’s capital, workers haul sides of beef off delivery trucks outside a local butcher shop while a queue of customers already forms to grab discounted bulk cuts. Inside the shop, 73-year-old owner Jorge García and his small team have been prepping orders since before sunrise, but a quiet shift is visible across the space: alongside the stacks of beef boxes and hanging primal cuts, chicken and pork now take up far more shelf and hook space than they once did.

    For decades, Argentina has stood as one of the world’s most avid consumers of beef, a staple woven into the country’s cultural and culinary identity. Today, however, that longstanding tradition is shifting dramatically. New data from the Agricultural Foundation for Argentina’s Development shows that per capita annual beef consumption dropped to 44.5 kilograms (98 pounds) as of April 2026, down from 49.5 kilograms just one year prior, and a steep fall from the 63.4 kilograms recorded in 2006. This marks the lowest consumption level the country has seen in 20 years, a change directly tied to the harsh economic austerity measures implemented by libertarian President Javier Milei, who took office in December 2023.

    When Milei assumed office, Argentina was grappling with an annual inflation rate of 211%. The president campaigned on a promise to eliminate what he called “the cancer of inflation” via a drastic austerity adjustment plan, symbolized by his trademark chainsaw used to signal deep public spending cuts. His administration implemented cuts equivalent to nearly one-third of the country’s total public spending, a move that ultimately achieved a rare budget surplus — a milestone not seen in Argentina in recent decades. But the social cost of these policies has sparked widespread criticism, as millions of households have seen their purchasing power erode rapidly.

    Within the first few months of taking office, Milei’s government eliminated 13 federal ministries, laid off roughly 30,000 public sector employees, paused all new public works projects, and cut funding for core public sectors including education, healthcare, and scientific research. The administration also rolled back longstanding state subsidies for essential services including electricity, natural gas, water, and public transportation. Economist Camilo Tiscornia explained that these cuts directly hit household bottom lines: “That affects household income because families now have to pay more for services that were previously subsidized by the state. As a result, they have less disposable income and must give up certain more expensive goods, such as beef.”

    Wage growth has also failed to keep pace with rampant inflation. The latest available data shows that wages for formally registered workers rose just 1.8% in February, while monthly inflation hit 2.9% that same month. For working and retired Argentines alike, this gap has forced difficult trade-offs. “Before, I had the freedom to buy what I wanted,” said Alberto Brajin, a 61-year-old retiree who runs a street-side barbecue stall in Buenos Aires. Now, he said, he has to “trade down” to cheaper proteins like chicken to keep his business running.

    Multiple factors beyond shrinking disposable income have combined to push beef consumption down. Over the past 12 months, beef prices have surged more than 60%, hitting an average of 18,500 Argentine pesos (roughly $13) per kilogram in Buenos Aires this May, according to data from the Argentine Beef Promotion Institute.

    In July 2025, Milei’s administration rolled back decades of beef export restrictions put in place by former President Alberto Fernández to control domestic prices. The government cut export taxes on beef and poultry and eliminated production quotas to encourage overseas sales. The policy shift came at a time when Argentina’s domestic beef production had already dropped more than 10% due to severe droughts and flooding across major cattle-producing regions, according to CICCRA, a non-profit that represents Argentina’s beef producers.

    The opening of the export market came alongside a separate policy shift from the United States, which expanded Argentina’s tariff-free beef quota earlier this year to address domestic cattle shortages in the U.S. The combination of these changes has led to a boom in overseas sales: Argentina’s government reported this week that beef exports jumped 54% year-over-year in the first quarter of 2026, totaling nearly 200,000 tons valued at more than $1 billion. With more beef flowing overseas, domestic supply has tightened, and prices have risen to align with higher global market rates.

    “Previously, all meats had similar prices, which encouraged high beef consumption that did not reflect its real production costs,” agricultural consultant Iván Ordóñez explained. For meat distributor Juampi Quintero, 25, the change has been stark: he estimates that beef consumption among his local clients has fallen by more than half. “Beef moved into a completely different purchasing-power category. Workers’ wages fell far behind,” he said.

    As beef moves out of reach for many families, local butchers and food sellers have had to adapt to shifting consumer demand. Current price data shows chicken averages just 4,900 pesos ($3.50) per kilogram, while pork ribs run around 8,900 pesos ($6.30) per kilogram — far less than the $13 per kilogram average for beef. “We’ve chosen to buy pork and chicken because beef is too expensive,” said local shop owner Ruth Simon.

    García, the 73-year-old Mataderos butcher shop owner, added chicken and pork to his inventory less than a year ago, after he noticed consistent changes in what his customers were asking for. Like many small business owners across the country, he is adjusting to the new economic reality rather than resisting it. “You have to adapt,” he said. “We can’t just sit around crying. No crying. We have to work. We have to keep our dignity. We have to fight.”

  • China-US summit boosts focus on California-China trade ties

    China-US summit boosts focus on California-China trade ties

    In the lead-up to the high-profile 2026 China-US summit, business leaders, trade policymakers, and industry stakeholders from China and California gathered in Los Angeles for the 2026 China-Californian Business Forum on May 12, where they united in calling for expanded bilateral economic collaboration amid growing global economic uncertainty. The forum, held one day before the US president’s state visit to China, centered on unlocking new opportunities through free trade zones, targeted industrial partnerships, and streamlined investment facilitation — all measures participants framed as critical to stabilizing global supply chains and strengthening two-way trade ties between the world’s two largest economies.

    During a panel session focused on trade and investment opportunities in free trade ports and zones, Gene Seroka, executive director of the Port of Los Angeles, underscored the urgent need for sustained commercial engagement between China and the United States, even amid ongoing global headwinds ranging from geopolitical tensions to shifting tariff policies. “These are the two largest economies in the world, making sure that we continue to trade and build up business to new heights is my hope for this week’s dialog,” Seroka told reporters on site. “We have a lot of work to do around policy and tariffs.”

    As the busiest container port complex in the United States, the Port of Los Angeles and its neighbor the Port of Long Beach have long served as the primary gateway for US trade with Asia. Seroka highlighted that the ports’ existing Foreign Trade Zone (FTZ) infrastructure and bonded warehouse facilities already help thousands of importers and exporters mitigate tariff-related cost pressures. Currently, the Port of Los Angeles manages roughly 5,400 acres of FTZ-designated land, with dozens of operational units and subzones strategically located near major transportation and industrial hubs surrounding Los Angeles International Airport. “In a very small way, the ports can assist in bringing down some of those tariff costs for importers,” Seroka explained. He added that demand for these specialized facilities has surged in recent years as companies reconfigure their supply chains to adapt to changing trade conditions, noting that “right now, these facilities are very highly subscribed.”

    Seroka also tied the need for stable bilateral relations to broader global challenges, including ongoing geopolitical conflict in the Middle East and soaring global fuel prices. “While there are many geopolitical issues happening around the world today, including the war in Iran, it is our goal that the two presidents, the two leaders of the world’s two largest economies, can make some progress,” he said.

    For California’s business community, the upcoming high-level summit between Beijing and Washington sends a much-needed positive signal to industries across the state that rely heavily on cross-border trade and investment. Stephen Cheung, president and CEO of the Los Angeles County Economic Development Corporation and World Trade Center LA, emphasized that Los Angeles — one of America’s most vital international trade hubs — reaps substantial economic benefits from deep cooperation with China. “We’re so dependent on international trade and foreign direct investment, we see this opportunity between the US and Chinese government getting together as a positive step,” Cheung said.

    Cheung shared key data illustrating the deep economic ties between the region and China: Chinese-invested enterprises currently operate 756 business locations across California, supporting more than 23,500 local jobs and generating an estimated $4 billion to $5 billion in annual worker wages. These investments, he noted, are concentrated in sectors that form the backbone of California’s long-term economic growth, including advanced manufacturing, clean energy technology, logistics, trade, and technological innovation.

    Chinese trade officials and investment representatives at the forum highlighted a wealth of untapped collaboration opportunities created by China’s ongoing market opening reforms, the expansion of national pilot free trade zones, and the development of the Hainan Free Trade Port. Zhao Feng, vice-governor of China’s Hainan province, outlined deepening industrial collaboration between Hainan and US partners across high-growth sectors including the digital economy, healthcare, information technology, and high-end consumer goods. Over recent years, Zhao said, multiple leading US enterprises have set up local operations in Hainan, driving growth in digital services, data processing, and cross-sector technological innovation. In the healthcare space, cross-border medical projects have strengthened research and clinical cooperation between Chinese and American institutions, while leading US consumer brands have expanded access to the vast Chinese consumer market through the annual China International Consumer Products Expo. “These projects reflect the growing industrial synergy between Hainan and the United States and underscore the broad potential for mutually beneficial cooperation between the two sides,” Zhao said.

    Li Zhiping, deputy director-general of Hainan’s Department of Commerce, added that the Hainan Free Trade Port is intentionally positioned as a high-standard platform for international openness and cooperation at a time of global economic uncertainty. “Hainan is using institutional opening-up to offset uncertainties in the international landscape,” Li said, noting that the province has implemented consistent policy reforms to protect the legal rights and interests of American and all foreign investors operating within its borders.

    Representatives from Shanghai, another of China’s core economic hubs, also outlined ongoing reforms to improve market access and the business environment for overseas investors, pushing back against common misperceptions about operating in China. Wu Yiyuan, chief representative of the San Francisco Office of Shanghai Foreign Investment Development Board, noted that many California business leaders still hold outdated views of China’s market access rules. “One common misconception is that market access to China is still highly restricted,” Wu said. She explained that China’s modern negative list system allows foreign investment in all sectors except those explicitly restricted, and the scope of restricted sectors has shrunk consistently in recent years. Wu added that Shanghai’s latest round of opening-up measures is focused specifically on sectors that align with California’s core industrial strengths: healthcare, finance, artificial intelligence, telecommunications, and advanced manufacturing. She also pointed to recent upgrades to cross-border data governance frameworks and streamlined administrative processes that have made doing business in Shanghai far more efficient for foreign firms. “Once companies gain a clearer picture of the market and better local support, many of the initial concerns become much more manageable,” Wu said.

    Small and medium-sized enterprise (SME) representatives also emphasized the critical role that trade facilitation programs like FTZs play in supporting cross-border trade for smaller businesses. David Harlow, president and CEO of ITC Diligence International, explained that FTZ programs give California-based manufacturers significant operational flexibility when importing components from China for final production, while also supporting export-oriented business models. “The FTZ program offers a tremendous amount of flexibility,” Harlow said, adding that these structures allow businesses to minimize disruptive delays to manufacturing, assembly, and global distribution processes. Harlow shared the example of a California client that imports the vast majority of its production components from China, completes final manufacturing in Southern California, and exports finished goods to markets around the world. “Ninety-five percent of our consumers do not exist in the US, but exist around the world,” Harlow noted. “For US businesses to be able to compete globally, utilizing programs like the FTZ become essential.”