MEF BUSINESS NEWS 2 MAY 2025 China says it’s evaluating the potential for new trade talks with the U.S., signaling a possible thaw in tensions after last month’s tariff hikes. Beijing wants Washington to scrap what it calls “unilateral and wrong” tariffs as a condition for meaningful dialogue, China’s Commerce Ministry said. Former ministry adviser John Gong says top-level Chinese leadership appears to be preparing for negotiations, though major hurdles remain. ——————————— And Japan says it hopes to finalize a trade agreement with the U.S. by June, with negotiations set to accelerate in mid-May. Chief negotiator Ryosei Akazawa described recent talks in Washington as “frank and open,” while calling President Trump’s sweeping tariffs “extremely regrettable.” Finance Minister Katsunobu Kato also hinted Japan’s large U.S. Treasury holdings could be used as leverage—though he stopped short of suggesting action. A deal may be reached during next month’s G7 summit in Canada. —————————— While the European Union is offering to boost purchases of U.S. goods by €50 billion in a bid to settle the growing trade dispute with Washington. In an interview with the Financial Times, EU Trade Commissioner Maroš Šefčovič said the bloc hopes to close the gap through imports of U.S. gas and agricultural products—but insisted current 10% tariffs are still “unjust” and too high. Talks with U.S. officials are ongoing ahead of a July deadline, with both sides trying to avoid a transatlantic trade war. Brussels is also preparing retaliatory measures if no deal is reached. ——————————- Global markets rallied Friday after China signaled it may resume trade talks with the U.S., boosting hopes of easing tariff tensions. Asian stocks hit a one-month high, S&P 500 futures climbed, and the MSCI EM currency index hit a record. Japan’s chief negotiator also expressed optimism about a U.S. trade deal by June. Gold slipped and Treasuries fell as risk appetite returned. Despite upbeat sentiment, analysts warn uncertainty remains, especially after disappointing earnings from Apple and Amazon. ———————————— A key shipping loophole used by Chinese retailers like Shein and Temu has been closed by President Trump, ending tariff exemptions for small packages under $800. Starting today, items from China and Hong Kong face a 120% tax or a flat rate, which rises to $200 next month. Prices on popular goods are already surging, with some more than doubling. The move targets what Trump calls a “big scam,” but critics warn it could squeeze U.S. consumers and small online sellers as trade tensions rise. —————————————- McDonald’s and General Motors are warning that the escalating trade war is hurting business. McDonald’s reported a 3.6% drop in U.S. sales — its worst quarter since the pandemic — as consumer confidence slumped. GM slashed its 2025 profit forecast by up to $5 billion, citing tariffs on imported auto parts. While GM thanked Trump for supporting U.S. manufacturing, analysts say the unpredictable policy shifts are disrupting supply chains and damaging consumer sentiment. The U.S. economy shrank in the first quarter, as fears of a global trade war deepen. ————————————— Trump has issued an executive order to end federal funding for public media outlets including PBS and NPR, calling them “unfair and biased.” The order directs the Corporation for Public Broadcasting to cancel current funding and stop future grants. The CPB receives over $500 million annually, much of which supports small-town and rural stations. Trump’s move follows his removal of CPB board members and ongoing legal battles with major networks. Critics warn the decision could cripple local news access, especially in underserved areas. —————————————- In Dubai, the Trump family’s cryptocurrency venture has landed a $2 billion deal with a UAE state-backed fund. Speaking at a packed crypto conference, World Liberty Financial co-founder Zach Witkoff said the Emirati fund MGX will use the Trump firm’s new stablecoin to invest via Binance, the world’s largest crypto exchange. The deal highlights unprecedented ethical concerns, with the Trump family profiting from foreign partnerships while President Trump is in office. Critics warn of deep conflicts of interest, as foreign nationals and sanctioned firms now play central roles in the president’s business empire. —— —— MEF MOBILE NEWS 2 MAY 2025 Apple’s quarterly earnings took a hit, as escalating tariffs and a slowdown in China dented sales and shook investor confidence. The company faces a $900 million tariff increase this quarter alone, threatening future pricing strategies for its iPhone and other mobile devices. In a market where competition is intensifying, Apple is scrambling to maintain its edge, launching AI services and preparing for a foldable iPhone. Mobile-first services like Apple’s App Store also face pressure from new regulations and competitors, while Apple shifts production to India and Vietnam to reduce tariff impacts. ———————————— Amazon has warned that tariffs and economic uncertainty could pressure consumer spending in the coming months, despite posting a solid first-quarter performance. While sales from its core retail operations grew 9%, the company expects weaker operating profit in the current quarter, citing concerns over trade policies and recession risks. Its advertising revenue, key for many third-party sellers, is vulnerable to the impacts of tariffs on Chinese goods. Meanwhile, Amazon Web Services (AWS) posted slower growth, reflecting broader cloud competition, especially against Microsoft’s Azure. The shift in the global trade landscape may impact Amazon’s mobile-first strategy, especially for its third-party marketplace and logistics. ————————————- Alphabet CEO Sundar Pichai, revealed in court that his company’s AI service, Gemini, might soon join the ranks of Siri on iPhones, Bloomberg reported. Apple, which has typically kept its AI in-house, has already partnered with OpenAI’s ChatGPT for tasks like text editing. But now, Pichai hopes Gemini will make its debut on Apple products sometime this year. With Apple’s developer conference just around the corner in June, maybe we’ll see this “AI power couple” in action—just in time for your next software update. ————————————- At Huawei’s Innovative Data Infrastructure Forum in Munich, Peter Zhou, President of the company’s data storage product line, highlighted the growing role of data in AI deployments, Mobile World Live reports. . He emphasized that as companies compete for AI dominance, data is becoming a critical asset. Huawei’s latest storage solutions, including all-flash systems, are designed to meet the increasing need for data lakes and more secure, energy-efficient infrastructures. With over 26,000 customers globally, Huawei continues to push its “In Europe, For Europe” strategy, aiming to empower organizations with reliable data storage to fuel the AI revolution. ————————————- The CIA has released two recruitment videos targeting disillusioned Chinese officials, showcasing how to securely contact the agency for sharing secrets. This move is part of the agency’s growing efforts to gather intelligence on China’s tech, military, and economic strategies. The videos have been posted on platforms like X and Telegram, proving once again that the CIA’s mobile security game is strong—even if most U.S. social media is banned in China. Seems like “the Firm” knows a thing or two about navigating the Great Firewall—just don’t expect them to share the secret to their success. —— —— MEF TECH NEWS 2 MAY 2025 E-commerce giant Temu is shifting away from its reliance on cheap Chinese imports to avoid soaring tariffs imposed during the U.S.-China trade war — Bloomberg reports. The company, known for its low-cost goods, will now focus on selling products sourced from U.S. merchants in a bid to sidestep hefty import taxes and keep prices stable for American consumers. The move comes as tariffs on Chinese goods continue to disrupt the retail market, prompting rivals like Shein to raise their prices. Temu’s change aims to support local businesses while navigating the evolving trade landscape and escalating costs. ———————————- The ongoing U.S.-China trade war continues to expose vulnerabilities in China’s automotive industry, particularly its dependence on U.S.-made chips — according to the Wall Street Journal. Despite efforts to localize chip production, Beijing recently exempted key U.S. semiconductor products from tariffs after pressure from carmakers. As China aims to make at least a quarter of the chips in its vehicles domestically by this year, industry experts say achieving that goal remains challenging. With companies like Texas Instruments and Nvidia holding key positions in automotive chip supply, China faces a difficult balancing act in replacing critical imports while building its own semiconductor infrastructure. ———————————— A California judge has allowed Elon Musk to pursue fraud claims against OpenAI, despite dismissing some of his other allegations. Musk’s lawsuit accuses OpenAI of breaking its promise to remain a public charity and shifting towards a for-profit model. The court also allowed claims of unjust enrichment against OpenAI and its major investor, Microsoft, to proceed. Musk alleges the alliance between OpenAI and Microsoft undermines competition in the AI sector. OpenAI is also under pressure to restructure by the end of 2025. ————————————————- Meta is set to face off against a group of US authors in court today, in a landmark case that could impact the future of AI training. The authors, including Ta-Nehisi Coates and Richard Kadrey, accuse the social media giant of using pirated materials from the shadow library LibGen to train its Llama AI models. Meta argues that using copyrighted content for AI development constitutes “fair use.” The lawsuit, part of a broader battle over AI’s use of copyrighted material, could reshape the legal landscape for AI technology. Meta denies any wrongdoing, claiming its AI innovations benefit the public. ——————————————- Dream Games, the Turkish company behind the hit mobile app Royal Match, has secured a valuation of nearly $5 billion following a minority stake sale to private equity firm CVC. The deal, which includes investments from CVC and Blackstone, will provide a significant payout to its venture capital backers. Royal Match, now the world’s most lucrative mobile game, highlights the company’s success in the competitive mobile gaming market. As the gaming industry faces slowed growth, Dream Games’ focus on polished, ad-free gameplay and in-app purchases sets it apart from many rivals. —— ——

MEF BUSINESS NEWS 2 MAY 2025 China says it’s evaluating the potential for new trade talks with the U.S., signaling a possible thaw in tensions after last month’s tariff hikes. Beijing wants Washington to scrap what it calls “unilateral and wrong” tariffs as a condition for meaningful dialogue, China’s Commerce Ministry said. Former ministry adviser John Gong says top-level Chinese leadership appears to be preparing for negotiations, though major hurdles remain. ——————————— And Japan says it hopes to finalize a trade agreement with the U.S. by June, with negotiations set to accelerate in mid-May. Chief negotiator Ryosei Akazawa described recent talks in Washington as “frank and open,” while calling President Trump’s sweeping tariffs “extremely regrettable.” Finance Minister Katsunobu Kato also hinted Japan’s large U.S. Treasury holdings could be used as leverage—though he stopped short of suggesting action. A deal may be reached during next month’s G7 summit in Canada. —————————— While the European Union is offering to boost purchases of U.S. goods by €50 billion in a bid to settle the growing trade dispute with Washington. In an interview with the Financial Times, EU Trade Commissioner Maroš Šefčovič said the bloc hopes to close the gap through imports of U.S. gas and agricultural products—but insisted current 10% tariffs are still “unjust” and too high. Talks with U.S. officials are ongoing ahead of a July deadline, with both sides trying to avoid a transatlantic trade war. Brussels is also preparing retaliatory measures if no deal is reached. ——————————- Global markets rallied Friday after China signaled it may resume trade talks with the U.S., boosting hopes of easing tariff tensions. Asian stocks hit a one-month high, S&P 500 futures climbed, and the MSCI EM currency index hit a record. Japan’s chief negotiator also expressed optimism about a U.S. trade deal by June. Gold slipped and Treasuries fell as risk appetite returned. Despite upbeat sentiment, analysts warn uncertainty remains, especially after disappointing earnings from Apple and Amazon. ———————————— A key shipping loophole used by Chinese retailers like Shein and Temu has been closed by President Trump, ending tariff exemptions for small packages under $800. Starting today, items from China and Hong Kong face a 120% tax or a flat rate, which rises to $200 next month. Prices on popular goods are already surging, with some more than doubling. The move targets what Trump calls a “big scam,” but critics warn it could squeeze U.S. consumers and small online sellers as trade tensions rise. —————————————- McDonald’s and General Motors are warning that the escalating trade war is hurting business. McDonald’s reported a 3.6% drop in U.S. sales — its worst quarter since the pandemic — as consumer confidence slumped. GM slashed its 2025 profit forecast by up to $5 billion, citing tariffs on imported auto parts. While GM thanked Trump for supporting U.S. manufacturing, analysts say the unpredictable policy shifts are disrupting supply chains and damaging consumer sentiment. The U.S. economy shrank in the first quarter, as fears of a global trade war deepen. ————————————— Trump has issued an executive order to end federal funding for public media outlets including PBS and NPR, calling them “unfair and biased.” The order directs the Corporation for Public Broadcasting to cancel current funding and stop future grants. The CPB receives over $500 million annually, much of which supports small-town and rural stations. Trump’s move follows his removal of CPB board members and ongoing legal battles with major networks. Critics warn the decision could cripple local news access, especially in underserved areas. —————————————- In Dubai, the Trump family’s cryptocurrency venture has landed a $2 billion deal with a UAE state-backed fund. Speaking at a packed crypto conference, World Liberty Financial co-founder Zach Witkoff said the Emirati fund MGX will use the Trump firm’s new stablecoin to invest via Binance, the world’s largest crypto exchange. The deal highlights unprecedented ethical concerns, with the Trump family profiting from foreign partnerships while President Trump is in office. Critics warn of deep conflicts of interest, as foreign nationals and sanctioned firms now play central roles in the president’s business empire. —— —— MEF MOBILE NEWS 2 MAY 2025 Apple’s quarterly earnings took a hit, as escalating tariffs and a slowdown in China dented sales and shook investor confidence. The company faces a $900 million tariff increase this quarter alone, threatening future pricing strategies for its iPhone and other mobile devices. In a market where competition is intensifying, Apple is scrambling to maintain its edge, launching AI services and preparing for a foldable iPhone. Mobile-first services like Apple’s App Store also face pressure from new regulations and competitors, while Apple shifts production to India and Vietnam to reduce tariff impacts. ———————————— Amazon has warned that tariffs and economic uncertainty could pressure consumer spending in the coming months, despite posting a solid first-quarter performance. While sales from its core retail operations grew 9%, the company expects weaker operating profit in the current quarter, citing concerns over trade policies and recession risks. Its advertising revenue, key for many third-party sellers, is vulnerable to the impacts of tariffs on Chinese goods. Meanwhile, Amazon Web Services (AWS) posted slower growth, reflecting broader cloud competition, especially against Microsoft’s Azure. The shift in the global trade landscape may impact Amazon’s mobile-first strategy, especially for its third-party marketplace and logistics. ————————————- Alphabet CEO Sundar Pichai, revealed in court that his company’s AI service, Gemini, might soon join the ranks of Siri on iPhones, Bloomberg reported. Apple, which has typically kept its AI in-house, has already partnered with OpenAI’s ChatGPT for tasks like text editing. But now, Pichai hopes Gemini will make its debut on Apple products sometime this year. With Apple’s developer conference just around the corner in June, maybe we’ll see this “AI power couple” in action—just in time for your next software update. ————————————- At Huawei’s Innovative Data Infrastructure Forum in Munich, Peter Zhou, President of the company’s data storage product line, highlighted the growing role of data in AI deployments, Mobile World Live reports. . He emphasized that as companies compete for AI dominance, data is becoming a critical asset. Huawei’s latest storage solutions, including all-flash systems, are designed to meet the increasing need for data lakes and more secure, energy-efficient infrastructures. With over 26,000 customers globally, Huawei continues to push its “In Europe, For Europe” strategy, aiming to empower organizations with reliable data storage to fuel the AI revolution. ————————————- The CIA has released two recruitment videos targeting disillusioned Chinese officials, showcasing how to securely contact the agency for sharing secrets. This move is part of the agency’s growing efforts to gather intelligence on China’s tech, military, and economic strategies. The videos have been posted on platforms like X and Telegram, proving once again that the CIA’s mobile security game is strong—even if most U.S. social media is banned in China. Seems like “the Firm” knows a thing or two about navigating the Great Firewall—just don’t expect them to share the secret to their success. —— —— MEF TECH NEWS 2 MAY 2025 E-commerce giant Temu is shifting away from its reliance on cheap Chinese imports to avoid soaring tariffs imposed during the U.S.-China trade war — Bloomberg reports. The company, known for its low-cost goods, will now focus on selling products sourced from U.S. merchants in a bid to sidestep hefty import taxes and keep prices stable for American consumers. The move comes as tariffs on Chinese goods continue to disrupt the retail market, prompting rivals like Shein to raise their prices. Temu’s change aims to support local businesses while navigating the evolving trade landscape and escalating costs. ———————————- The ongoing U.S.-China trade war continues to expose vulnerabilities in China’s automotive industry, particularly its dependence on U.S.-made chips — according to the Wall Street Journal. Despite efforts to localize chip production, Beijing recently exempted key U.S. semiconductor products from tariffs after pressure from carmakers. As China aims to make at least a quarter of the chips in its vehicles domestically by this year, industry experts say achieving that goal remains challenging. With companies like Texas Instruments and Nvidia holding key positions in automotive chip supply, China faces a difficult balancing act in replacing critical imports while building its own semiconductor infrastructure. ———————————— A California judge has allowed Elon Musk to pursue fraud claims against OpenAI, despite dismissing some of his other allegations. Musk’s lawsuit accuses OpenAI of breaking its promise to remain a public charity and shifting towards a for-profit model. The court also allowed claims of unjust enrichment against OpenAI and its major investor, Microsoft, to proceed. Musk alleges the alliance between OpenAI and Microsoft undermines competition in the AI sector. OpenAI is also under pressure to restructure by the end of 2025. ————————————————- Meta is set to face off against a group of US authors in court today, in a landmark case that could impact the future of AI training. The authors, including Ta-Nehisi Coates and Richard Kadrey, accuse the social media giant of using pirated materials from the shadow library LibGen to train its Llama AI models. Meta argues that using copyrighted content for AI development constitutes “fair use.” The lawsuit, part of a broader battle over AI’s use of copyrighted material, could reshape the legal landscape for AI technology. Meta denies any wrongdoing, claiming its AI innovations benefit the public. ——————————————- Dream Games, the Turkish company behind the hit mobile app Royal Match, has secured a valuation of nearly $5 billion following a minority stake sale to private equity firm CVC. The deal, which includes investments from CVC and Blackstone, will provide a significant payout to its venture capital backers. Royal Match, now the world’s most lucrative mobile game, highlights the company’s success in the competitive mobile gaming market. As the gaming industry faces slowed growth, Dream Games’ focus on polished, ad-free gameplay and in-app purchases sets it apart from many rivals. —— ——