Ata mārie and welcome to your Friday summary of international business and political news.
First up, Chinese President Xi Jinping promised US executives travelling with counterpart Donald Trump, including Elon Musk and Tim Cook, that the door to business in China would “open wider”, CNBC reported.
“Xi said that US companies are deeply involved in China’s reform and opening up, and both sides have benefited from this,” reported state news agency Xinhua.
“Xi said China welcomes the United States to enhance mutually beneficial cooperation with China, and expressed belief that US companies will enjoy even broader prospects in China.”
Meanwhile, Trump told Fox News that China agreed to buy 200 Boeing aircraft jets. Analysts had expected a big order of Boeing aircraft to come out of Trump’s visit to China, though some thought it would be up to 500 aircraft.
Trump also said Xi offered to help open the Strait of Hormuz as tensions between the US and Iran remained unresolved. “He would like to see a deal made”, Trump said. Dozens of vessels had now passed through the Strait of Hormuz under Iran’s ‘management protocols’, according to Iran’s Revolutionary Guard.
CNN also reported that Xi promised not to provide military equipment to Iran. However, Xi also warned Trump that any missteps on Taiwan could push China and the US into "conflict".
Beijings foreign ministry said Xi told Trump that mishandling the Beijing-claimed island of Taiwan would cause "clashes and even conflicts, putting the entire relationship in great jeopardy".
Xi and Trump planned to meet again on Friday morning local time for tea and a diplomatic lunch.
UK Prime Minister Keir Starmer.
In developing news, UK Health Secretary Wes Streeting has resigned amid a deepening crisis about the future of Prime Minister Keir Starmer. Just hours after Streeting’s announcement, Josh Simons said he would also resign from his seat in Parliament, Al Jazeera reported, opening the seat for touted Starmer challenger Andy Burnham.
Streeting said he no longer had “confidence” in Starmer’s leadership.
“It is now clear that you will not lead the Labour Party into the next general election, and that Labour MPs and Labour unions want the debate about what comes next to be a battle of ideas, not of personalities or petty factionalism,” Streeting said.
“It needs to be broad, and it needs the best possible field of candidates. I support that approach and I hope that you will facilitate this.”
Meanwhile, the UK economy was more resilient than feared at the start of the Iran war, with official figures showing GDP growth of 0.3% in March, the Guardian reported.
Economists warned that might be as good as it gets for the UK economy this year, as the Middle East conflict pushes up energy prices and disrupts supply chains.
Elsewhere, Latvian Prime Minister Evika Silina has resigned after a key party in her coalition withdrew support in a row over Ukraine drones that moved into the Baltic nation, the AFP and ABC said.
The drones were on an attack mission across the border in Russia, and Ukraine said they crashed into Latvian territory on May 7. One caused a fire at a disused oil storage site in eastern Latvia.
Silina had been prime minister since September 2023. "The most important thing for me is the wellbeing of Latvians and the security of our country," she told a press conference.
President Edgars Rinkevics said he planned to meet with party leaders on Friday local time for talks on a new government.
On the ground, a fresh wave of Russian strikes targeted Ukraine’s capital Kyiv, killing at least 12 people and injuring at least 57, according to authorities, CNN reported.
In corporate results, Jaguar Land Rover’s annual profit slumped more than 99% as it counted the cost of US tariffs and a cyber-attack that disrupted its factories. It made just US$19 million in profit before tax in the year ended March, the Guardian said.
Staying with the sector, Japanese car giant Honda made its first annual loss in 70 years as its investments in electric vehicles failed to pay off as demand struggled. The firm reported a total operating loss of US$2.68 billion, the BBC reported.
Honda said it was scrapping some of its EV production targets and would source parts from China, where prices were lower.
Over the Ditch, Australian supermarket giant Coles broke consumer laws by misleading shoppers on discount prices, a Federal Court judge has ruled. The Australian Competition and Consumer Commission sued Coles for alleged breaches related to its promotional campaign, the ABC said.
Judge Michael O'Bryan handed down his judgment finding that in 13 of the 14 pricing tickets submitted to the court, the discount was not genuine. He said Coles did not sell products at a higher price for at least 12 weeks before discounting them. O'Bryan will also rule on a similar case against Woolworths at a later date.
"Our priority has always been – and will continue to be – delivering value to our customers," Coles responded.
"The court found that all price increases resulted from supplier cost price increases and were, therefore, commercially justifiable.”
