Beijing’s seizure of disputed South China Sea reef revives tensions with the Philippines

Good morning and welcome again to FirstFT Asia. In right now’s e-newsletter:

• The newest South China Sea stand-off

• Trump’s commerce warfare hits US ports and air freight

• Inside Interpol’s Singapore innovation lab

We begin right now with China’s transfer to proclaim sovereignty over a disputed reef within the South China Sea, which has triggered a new stand-off with the Philippines. Right here’s what you’ll want to know in regards to the row over Sandy Cay.

What’s taking place: The Philippines despatched navy, coastguard and maritime law enforcement officials to Sandy Cay and two neighbouring sandbanks within the Spratly Islands yesterday to “uphold the nation’s sovereignty, sovereign rights and jurisdiction” and displayed the nationwide flag there, in line with a press release printed on X. The transfer got here a day after China mentioned it had “carried out maritime management and exercised sovereign jurisdiction” over the reef by showing its own flag there — the primary such official declaration of sovereignty on or close to a land characteristic within the disputed waters in at the least a decade.

Why Sandy Cay issues: Though only a sand financial institution measuring little greater than 200 sq m, Sandy Cay has strategic worth as a result of its categorisation as a rock might permit the nation controlling it to say a territorial sea round it. That 12-nautical-mile radius would overlap with Thitu Island, the Philippines’ most necessary army foothold within the space. Sandy Cay is one in all 4 reefs the place Manila has suspected China of planning land reclamation works adopted by additional militarisation.

US-Philippine army drills: The row over Sandy Cay comes as Philippine and American troops are on account of start coastal defence and island seizure drills on the Philippine territory closest to the Spratlys right now. The White Home mentioned on Saturday that the experiences of China seizing Sandy Cay have been “deeply regarding if true”.

Right here’s what else we’re maintaining tabs on right now:

• Financial knowledge: Singapore publishes first-quarter labour market figures and Malaysia experiences March PPI inflation knowledge.

• Canada’s election: Prime Minister Mark Carney will face off in a national election in opposition to Pierre Poilievre, a profession politician whose management bid has been tainted by affiliation with US President Donald Trump. The vote takes place after eleven people were killed when a automobile was pushed into a big crowd in Vancouver on Saturday evening.

• Outcomes: Daiwa Securities, Tokyo Gasoline, Kikkoman, Komatsu and China Petroleum & Chemical Corp are among the many firms reporting right now.

5 extra high tales

1. Donald Trump’s commerce warfare with Beijing is beginning to have an effect on the broader US financial system as container port operators and air freight managers report sharp declines in items transported from China. Logistics teams mentioned container bookings to the US have fallen sharply since the introduction of 145 per cent tariffs on Chinese language imports to the US.

• Double tariffs: International producers in China are paying duties of 125 per cent to import parts and then 145 per cent to export to the US.

• Extra US-China information: The liquefied pure fuel business has warned the Trump administration it can’t adjust to new guidelines geared toward forcing them to make use of US transport vessels by imposing levies on Chinese-built ships docking at US ports.

2. Vanguard, the world’s second-largest asset supervisor, has dominated out re-entering China’s fund business even because the group seeks to speed up its world growth past its largest market within the US. Chris McIsaac, head of Vanguard’s worldwide enterprise, informed the FT why it doesn’t make sense for the group to operate in China.

3. Russian businessman Albert Avdolyan has been hit with EU sanctions over Moscow’s warfare in Ukraine, however can partially circumvent the bloc’s journey ban because of a Maltese passport he purchased beneath a “golden” visa scheme that faces a European court docket ruling on its future this week. The paid-for citizenship was given to politically exposed individuals, or individuals who later appeared on sanctions lists or have been convicted of crimes.

4. Saudi Arabia and Qatar have mentioned they are going to settle Syria’s excellent debt to the World Financial institution, in a step that may assist the conflict-ravaged nation entry funding for postwar reconstruction and public-sector salaries. The funding of about $15mn would be the first financial assistance to Syria from Saudi Arabia for the reason that fall final 12 months of Bashar al-Assad’s regime, a authorities that the dominion had staunchly opposed.

5. Far-right politician Jordan Bardella has mentioned he’ll run to grow to be France’s president in 2027 if Marine Le Pen is blocked from running by a court judgment. “Marine Le Pen is my candidate and, if she have been to be prevented [from running] tomorrow, I feel I can let you know that I will probably be her candidate,” the 29-year-old Bardella informed Le Parisien newspaper.

FT Journal

Within the leafy Singapore suburb of Tanglin, over the street from the British Excessive Fee and the US embassy, and a block away from the Botanic Gardens, sits a modest analysis facility on the coronary heart of efforts by legislation enforcement companies to remain one step forward of their more and more subtle and professionalised prison adversaries. Owen Walker goes inside Interpol’s innovation lab.

We’re additionally studying . . . 

• Kashmir assault: The killing of 26 individuals has prompted shock, grief and anger in India and introduced the nation to the brink of battle with Pakistan.

• Make America Pregnant Once more: The Republicans desire a “child growth”. And Elon Musk can fertilise us all, writes Jo Ellison.

• Hank Paulson: If the US needs to win the AI race with China it should create a nationwide vitality technique that prioritises velocity, flexibility and cost-effectiveness, writes the previous US Treasury secretary.

Chart of the day

Liverpool FC has won the Premier League regardless of spending lower than their rivals throughout the summer season and winter switch home windows, in line with Transfermarkt knowledge.

Take a break from the information

“Headphone dodgers” are the most recent entrants within the centuries-long city battles between noisemakers and their unwilling listeners. FT pop critic Ludovic Hunter-Tilney proposes a technique to cease them.