Kim Vennell

Tesla is looking to build a new, smaller, cheaper electric SUV.

The compact model will be significantly shorter than its popular Model Y, and at least at first, produced in China.

And the price tag?

Well, its Model 3 sedan starts at $37,000 in the US, and Tesla is aiming well below that price point.

It's part of an effort to keep up with rivals like BYD, whose cheap EVs have surged in popularity across China and Europe.

People on both sides of the strait are all Chinese.

That was Chinese President Xi Jinping's message to Cheng Liyun, the leader of Taiwan's opposition party.

Cheng has made a rare visit to China this week on what she calls a bid to calm rising tensions across the Taiwan Strait.

China, of course, claims Taiwan as its own and has threatened military force to reclaim it.

And the US is Taiwan's most important international backer.

It's important to remember that Cheng leads the opposition Kuomintang Party, or KMT.

And as for Taiwan's government, well, China has refused to deal with them.

Reuters' Ben Blanchard explains.

Ben says back in Taiwan, there's been a lot of pushback over Chairwoman Cheng's visit.

For more on any of the stories from today, check out Reuters.com or the Reuters app.

Don't forget to follow us on your favorite podcast player.

If you're listening on a smart speaker, just ask for the latest news from Reuters seven days a week.

We'll be back tomorrow with our daily headline show.

Hi, I'm Kim Vennell in Whanganui, New Zealand.

It's Thursday, April 9th.