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China blames US for raising trade tensions

Indian asset manager halts new investments in silver ETF MUMBAI: UTI Asset Management Company has temporarily suspended fresh lump-sum and switch-in investments into the UTI Silver ETF Fund of Fund, effective Oct 13, 2025, the company said in a statement on Saturday. The asset manager said this was due to prevailing market conditions and a shortage of physical silver in the domestic market as the metal trades at a premium relative to international prices. “Therefore, the premium in domestic silver prices directly impacts the valuation of the scheme.” UTI is the second fund manager to curb new investments into silver-based funds this week. On Thursday, Kotak Mahindra Asset Management Company also temporarily suspended new investments into a Silver ETF Fund of Fund. Kotak said it would lift the restrictions within the next couple of weeks as supply improves after the Hindu festival of Diwali. Spot silver hit a record high of US$51.22 per ounce on Thursday, surpassing the US$51 per ounce level for the first time. – Reuters S&P lifts Egypt’s credit rating WASHINGTON: S&P Global Ratings announced it was upgrading Egypt’s credit rating, praising the progress made by the government’s IMF-backed economic reform programme. The US ratings agency raised Egypt’s sovereign debt rating to B from B-, adding that its outlook for the North African country was “stable.” “The upgrade reflects the reforms undertaken over the past 18 months by the authorities,” S&P said in a statement. It added that the government’s moves to liberalise the foreign exchange regime, supported by an International Monetary Fund reform programme, had led to a rebound in economic growth. Egypt’s economic growth rebounded in the last fiscal year to 4.4% from 2.4% in 2024, and was forecast to hit an average growth rate of 4.6% over the next three years, it said. “The Egyptian authorities’ commitment to a market-determined exchange rate, alongside the policy anchor provided by the sizable IMF programme, should continue to support GDP growth prospects and fiscal consolidation efforts.“ The ratings agency warned that risks due to regional tensions related to Israel’s war in Gaza remained. – AFP Warner Bros rebuffs Paramount offer LOS ANGELES: Warner Bros Discovery has rebuffed Paramount Skydance’s initial takeover approach as too low, Bloomberg News reported on Saturday. Warner Bros rejected Paramount’s offer of around US$20 per share in recent weeks, the report said, citing people familiar with the matter. Paramount declined to comment on the report, while Warner Bros did not immediately respond to Reuters request for comment. Paramount, led by David Ellison, is exploring several paths in its bid for Warner Bros, including increasing its offer, appealing directly to shareholders or securing extra support from a financial partner, Bloomberg said. Paramount has been in talks with alternative asset manager Apollo Global Management about backing its bid, Bloomberg reported earlier this week. Ellison took over Paramount in August after completing an US$8 billion merger with his film production company Skydance Media. – Reuters

BEIJING: China called President Donald Trump’s latest US tariffs on Chinese goods hypocritical yesterday and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on American products. Trump on Friday responded to Beijing’s most recent export controls by imposing additional tariffs of 100% on China’s US-bound exports, along with new export controls on critical software by Nov 1. The revived trade tensions have rattled Wall Street, sending Big Tech shares tumbling, worried foreign companies dependent on China’s production of processed rare earths and rare earth magnets, and could derail a summit between Trump and Chinese President Xi Jinping tentatively scheduled for later this month. The Chinese Commerce Ministry’s statement yesterday was Beijing’s first direct response to Trump’s lengthy Truth Social post on Friday, where he accused Beijing of suddenly raising trade tensions after an uneasy truce was reached six months ago between the world’s two largest economies, allowing them to trade goods without sky-high tariff rates. “Our relationship with China over the past six months has been a very good one, thereby making this move on trade an even more surprising one,” Trump said. The Commerce Ministry said in an equally lengthy statement that its export controls on rare-earth elements followed a series of US measures since bilateral trade talks in Madrid last month. Beijing cited the addition of Chinese companies to a US trade blacklist and Washington’s imposition of port fees on China-linked ships as examples. “The US actions have severely harmed China’s interests and undermined the atmosphere of bilateral economic and trade talks, and China is resolutely opposed to them,” the ministry said. Beijing stopped short of explicitly connecting these US actions to its export curbs on rare-earth elements, saying its curbs were motivated by concern about these materials’ military applications at a time of “frequent military conflicts”. It also held off on announcing a corresponding levy on China-bound US imports, unlike earlier in the year, when both o Beijing defends rare earth curbs, but refrains from tit-for-tat tariff hike

A ship is seen at the container terminal of the eastern China port of Qingdao. – AFPPIC

seen as a major concession,” the research firm said. The Commerce Ministry also countered Trump’s narrative that China was using its dominance in processed rare earths and rare earth magnets to attack all countries, not just the US. “We have been contacted by other countries who are extremely angry at this great trade hostility, which came out of nowhere,” Trump said on Friday on Truth Social. China produces over 90% of the world’s processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Exports of 12 of them are restricted after China’s Commerce Ministry on Thursday added five – holmium, erbium, thulium, europium and ytterbium – along with related materials. The Commerce Ministry statement yesterday sought to reassure foreign companies spooked by the latest export curbs, promising to promote compliant trade by granting general licences and licence exemptions. “China’s export controls are not export bans,” it said. “Any export applications for civilian use that comply with regulations will be approved, and relevant enterprises need not worry.” – Reuters

superpowers progressively ratcheted up tariffs on each other until the US rate was 145% while China’s was 125%. “Willful threats of high tariffs are not the right way to get along with China. China’s position on the trade war is consistent: we do not want it, but we are not afraid of it,” the ministry said, adding China would take corresponding measures if the US did not correct its course. China’s decision not to immediately respond in kind to Trump’s opening salvo in this latest round of trade tensions could leave the door open for both countries to negotiate a de-escalation, analysts said. “By clarifying the rationale behind its retaliatory measures, Beijing is also outlining a potential path forward for negotiations. The ball is now in the US court,” said Alfredo Montufar-Helu, managing director at strategic advisory firm GreenPoint. But Hutong Research said in a note on Saturday that if Beijing chooses not to respond to Trump’s 100% tariff hike, it may signal that Beijing no longer prioritises a long-term deal with him, reflecting diminished confidence in his ability to restrain hawks or stick to commitments. “Key watchpoints now: Whether Beijing moves to freeze or complicate the TikTok sale, given its political symbolism. Proceeding with the sale under current conditions would be

America threatens to sanction nations that back UN plan WASHINGTON: The United States last week threatened to use visa restrictions and sanctions to retaliate against nations that vote in favour of a plan put forward by a United Nations agency to reduce planet-warming greenhouse gas emissions from ocean shipping. generally agree that a global regulatory framework is crucial to speeding up decarbonisation. Still, some of the world’s biggest oil tanker companies said they had “grave concerns” about the proposal. unsanctioned global tax regime that levies punitive and regressive financial penalties”, they said. Without global regulation, the maritime industry would face a patchwork of regulations and increasing costs without effectively curbing climate-warming greenhouse gas emissions, supporters of the IMO proposal have said.

“The Administration unequivocally rejects this proposal before the IMO and will not tolerate any action that increases costs for our citizens, energy providers, shipping companies and their customers, or tourists,” US Secretary of State Marco Rubio, US Energy Secretary Chris Wright and US Transportation Secretary Sean Duffy said in a joint statement. The “proposal poses significant risks to the global economy and subjects not just Americans, but all IMO member states to an

UN member nations are scheduled to vote this week on the International Maritime Organisation’s Net-Zero Framework proposal to reduce global carbon dioxide gas emissions from the international shipping sector, which handles around 80% of world trade and accounts for close to 3% of global greenhouse gases. Large container carriers, under pressure from investors to fight climate change,

The US is considering retaliation against UN countries that support the plan, the American officials said in the statement. That includes potentially blocking vessels flagged in those nations from US ports, imposing visa restrictions and fees, and slapping sanctions on officials “sponsoring activist-driven climate policies”. – Reuters