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What did Xi Jinping say about US‑China relations during his White House visit?
Good morning from the Financial Times. Today is Friday, September 25th, and this is your FT News briefing. Donald Trump rolled out the red carpet for Xi Jinping, and the UK wants some of the business perks of being European. Plus, we look at what the bond market sell-off means for you. I'm Sonia Hudson Informark Filipino, and here's the news you need to start your day.
Chinese leader Xi Jinping began his first visit to Washington in more than a decade yesterday. US President Donald Trump said the two made progress on issues, including a quote, more balanced trading relationship. The nations extended their trade war truce until January. She said that China and the US must quote coexist in peace. Here he is speaking at the White House through an interpreter.
China and the United States as two major countries stand to gain from cooperation and will both lose in confrontation. We do not need to avoid mentioning competition, but our competition should be a healthy one and should be kept within
Inbound. The visit also comes as the Chinese military continues its assertive activity in the South China Sea. The two leaders were expected to discuss US and Chinese policy towards Taiwan. But there was a breakthrough in panda diplomacy. She announced that China would send two giant pandas to the Atlanta Zoo soon.
The EU has laid down an ultimatum for the UK.
Why is the EU demanding the UK raise tariffs on Chinese cars to keep the ‘Made in Europe’ label?
If you want to be part of our Made in Europe subsidies program, you gotta match our tariffs against China. That's according to people familiar with the discussions. But that move could be tricky for the UK. Peter Foster is the FT's World Trade Editor. He joins me now. Hi, Peter. Hi. Okay, tell me more about this made in Europe label that is at the center of the standoff.
So the EU is trying to create a world where EU-based manufacturers in autos, in energy, in key supply chains, chemicals get preferential access to EU subsidy schemes. Now the UK, fifty percent odd of its trade is done with the EU, is worried that if it's not treated as if it's European, then its automakers and chemical firms and nuclear to energy providers are gonna find themselves shut out of those supply chains. And so the EU goes, well, okay, that's fine, but you remember you left the EU and you're outside the EU single market. You don't wanna have free movement of people. So in that case, it's a bit difficult to make you part of the family if you're not gonna follow the family rules.
Okay, so Brussels is basically saying if you wanna join this Made in Europe label, you have to match our tariffs. Why wouldn't the UK wanna do that?
Well, here's the rub. Since Brexit, one of the advantages of Brexit was the UK had its own trade policy.
How is the EU‑UK trade standoff affecting Britain’s post‑Brexit trade strategy?
And so, for example, back in 2024, the EU put tariffs on Chinese electric vehicles of up to forty-five percent, depending on where they came from. The UK didn't do that, which meant that Chinese EVs came into the UK cheaper and more easily. And so the UK is in the process of trying to, for example, get the Chinese auto firms to invest uh and do tie ups with some of the UK based firms and UK based plants. So, you know, the the price of entry to the EU's Made in Europe scheme is that we've got to put tariffs up on the Chinese, then that's a problem for our relations with China.
Peter, it sounds like the UK kinda wants it both ways here, right? You know, it wants to be included in the European market, but at the same time, it doesn't want to uphold Europe's rules on trade with China. Is that position tenable? Is it gonna work?
I think the short answer to that is probably not. One UK official said to me, It's difficult to say that we want to be inside part of Fortress Europe for the Made in Europe scheme, and yet have trade policy, trade defence measures that appear to undermine that fortress. There is frustration, I think, in Brussels that the UK, on the one hand, is asking for this exemption to be treated as if it's European and yet isn't really yet prepared to follow the logic of that request, which is, well, in that case, you're gonna have to harmonize your trade defense measures with the EU's.
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Chapters
8 chapters
1
What did Xi Jinping say about US‑China relations during his White House visit?
0:01–1:50
2
Why is the EU demanding the UK raise tariffs on Chinese cars to keep the ‘Made in Europe’ label?
1:50–3:16
3
How is the EU‑UK trade standoff affecting Britain’s post‑Brexit trade strategy?
3:16–5:18
4
What triggered the recent bond‑market sell‑off and why are yields spiking above 5%?
5:18–6:58
5
How will rising US Treasury yields impact mortgage rates for ordinary Americans?
6:58–8:34
6
What does Kate Duggan say about the effect of higher rates on the US housing market?
8:34–10:04
7
Why did dozens of foreign officials walk out of the UN when Netanyahu spoke?
10:04–11:46
8
What’s the story behind Jersey Mike’s expansion into the UK’s rainy sandwich market?
11:46–13:10