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China tries to rein in EV price wars

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BEIJING (AP) — The Chinese government is signaling enough is enough when it comes to the fierce competition in the country’s electric car market.

China’s industrial policy has engineered a remarkable transformation to electric vehicles in what is the world’s largest auto market. In so doing, it has spawned far more makers than can possibly survive. Now, long-simmering concerns about oversupply and debilitating price wars are coming to the fore, even as the headline sales numbers soar to new heights.

Market-leader BYD announced this week that its sales grew 31% in the first six months of the year to 2.1 million cars. Nearly half of those were pure electric vehicles and the rest were plug-in hybrids, it said in a Hong Kong Stock Exchange filing. The company phased out internal combustion engine cars in 2022.

BYD came under thinly veiled criticism in late May when it launched a new round of price cuts, and several competitors followed suit. The chairman of Great Wall Motors warned the industry could come under threat if it continues on the same trajectory.

“When volumes get bigger, it’s just much harder to manage and you become the bullseye,” said Lei Xing, an independent analyst who follows the industry.

The government is trying to rein in what is called “involution” — a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere.

BYD has come under criticism for using its dominant position in ways that some consider unfair, sparking price wars that have caused losses across the industry, said Murthy Grandhi, an India-based financial risk analyst at GlobalData.

With the price war in its fourth year, Chinese automakers are looking abroad for profits. BYD’s overseas sales more than doubled to 464,000 units in the first half of this year. Worried governments in the U.S. and EU have imposed tariffs on made-in-China electric vehicles, saying that subsidies have given them an unfair advantage.

Market leader BYD comes under attack

The latest bout of handwringing started when BYD cut the price of more than 20 models on May 23.

The same day, the chairman of Great Wall Motors, Wei Jianjun, said he was pessimistic about what he called the “healthy development” of the EV market. He drew a comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover.

“The Evergrande in the automobile industry already exists, but it is just yet to explode,” he said in a video message posted on social media.

Two days later, a BYD executive rejected any comparison to Evergrande and posted data-filled charts to buttress his case.

“To be honest, I am confused and angry and it’s ridiculous!” Li Yunfei, BYD’s general manager of brand and public relations, wrote on social media. “All these come from the shocking remarks made by Chairman Wei of Great Wall Motors.”

Next, the government and an industry association weighed in. The China Association of Automobile Manufacturers called for fair competition and healthy development of the industry, noting that major price cuts by one automaker had triggered a new price war panic.

On the same day, the Ministry of Industry and Information Technology vowed to tackle involution-style competition in the auto industry, saying that recent disorderly price wars posed a treat to the healthy and sustainable development of the sector.

“That price cut might have been the final straw that irked both competitors and regulators for the ruthlessness that BYD continues to show,” Lei said.

A promise to pay suppliers within 60 days signals possible shift

The following month, 17 automakers including BYD made a pledge: They would pay their suppliers within 60 days.

One way China’s automakers have been surviving the bruising price wars is by delaying the payments for months. The agreement, if adhered to, would reduce financial pressure on suppliers and could rein in some of the fierce competition.

“The introduction of the 60-day payment pledge is the call of the government to oppose involution-style competition,” said Cui Dongshu, the secretary-general of the China Passenger Car Association.

It also reduces the risk of an Evergrande-like scenario.

Many automakers had stretched out payments by paying suppliers with short-term debt — promises to repay them in a certain period of time — instead of cash. Real estate developers used the same system. It worked until it didn’t. When Evergrande defaulted on its debts, suppliers were left holding worthless promises to pay.

“This practice is seen as a potential cause of a larger crisis, similar to what happened with Evergrande,” Grandhi said.

The vows to speed up payments and the government calls to rein in the price wars, along with a rollback of some financing offers, point to an effort to reverse downward price expectations, said Jing Yang, a director at Fitch Ratings who focuses on the auto industry.

“We may watch how effectively these measures are in reversing the price trend and how would that affect EV demand in the coming quarters,” she said.





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Treasury secretary says countries without trade deals will see tariffs ‘boomerang’ to April rates by Aug. 1

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WASHINGTON — Treasury Secretary Scott Bessent said Sunday that the U.S. will revert to steep country-by-country tariff rates at the beginning of August, weeks after the tariff rate pause is set to expire.

“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on Aug. 1, you will boomerang back to your April 2 tariff level,” Bessent said in an interview on CNN’s “State of the Union.” “So I think we’re going to see a lot of deals very quickly.”

President Donald Trump had originally set a 90-day deadline — set to expire Wednesday — for countries to renegotiate the eye-watering tariff levels he laid out in his April 2 “Liberation Day” speech. He paused those rates a week later, while setting a new 90-day deadline to renegotiate them.

That deadline was set to expire Wednesday.

CNN host Dana Bash responded to Bessent on Sunday, saying, “There’s basically a new deadline,” prompting Bessent to push back.

“It’s not a new deadline. We are saying this is when it’s happening,” Bessent said. “If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice.”

On Friday, Trump, too, referred to an Aug. 1 deadline, raising questions about whether the July 9 deadline still stands. A White House spokesperson did not provide a comment when asked to clarify whether the April 2 tariff rates would resume July 9 or Aug. 1.

The president has recently given shifting descriptions of how firm the July 9 deadline is, saying at the end of June, “We can extend it, we can shorten it,” only to double down on it several days later, saying he was not thinking about extending it.

Shortly after midnight Friday, Trump referred to an Aug. 1 timeline, telling reporters that the April 2 tariff rates would resume at the start of August.

Asked whether the U.S. would be flexible with any countries about on the July 9 deadline, Trump said, “Not really.”

“They’ll start to pay on Aug. 1,” he added. “The money will start to come into the United States on Aug. 1, OK, in pretty much all cases.”

Trump said Friday that the administration would start sending letters to countries, adding, “I think by the 9th they’ll be fully covered.”

“They’ll range in value from maybe 60% or 70% tariffs to 10% and 20% tariffs, but they’re going to be starting to go out sometime tomorrow,” Trump said overnight on Friday. “We’ve done the final form, and it’s basically going to explain what the countries are going to be paying in tariffs.”

Trump said in a Truth Social post late Sunday evening that tariff letters would be delivered starting at noon on Monday.

Bessent also said Sunday that “many of these countries never even contacted us.”

Tariffs are paid by importers — which can pass on part or all of the costs to consumers — and not necessarily by entities in the goods’ country of origin.

The White House had initially projected confidence that dozens of countries would try to make deals. White House trade adviser Peter Navarro said on NBC News’ “Meet the Press” in April that “we’ve got 90 deals in 90 days possibly pending here.” Late last month, Trump said, “Everybody wants to make a deal,” and after he announced sweeping tariffs on April 2, he said countries were “calling us up, kissing my a–.”

“They are,” he said in April. “They are dying to make a deal. ‘Please, please, sir, make a deal. I’ll do anything.’”

The renewed uncertainty is likely to further upset markets, where stock futures went lower Friday after Trump mentioned the country letters. Stocks have returned to all-time highs in part due to the lull in tariff news.

So far, Trump has imposed higher import duties on autos and auto parts, steel and aluminum, and goods from China and Vietnam.



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Israel says it struck Houthi ports and seized cargo ship in Yemen

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Yang Tian & David Gritten

BBC News

Mohammed Hamoud/Getty Images The Galaxy Leader Vessel is seen on the Red Sea coast off Hudaydah, on May 12, 2024. Mohammed Hamoud/Getty Images

Israel says the Galaxy Leader, a ship previously hijacked by Houthi rebels, was among the targets

The Israeli military says it has carried out air strikes on Houthi-controlled areas of Yemen in response to repeated missile and drone attacks on Israel.

The military said the targets were the Red Sea ports of Hudaydah, Ras Issa and al-Salif, a nearby power station, and the cargo ship Galaxy Leader. The ship, hijacked by the Houthis in November 2023, was being used to monitor international shipping, according to the military.

The Houthis’ military spokesman said the Iran-backed group’s air defences “successfully” confronted the Israeli attack. There were no reports of any casualties.

Following the strikes, two missiles were launched from Yemen towards Israel, according to the Israeli military.

Sirens were triggered in several areas of the occupied West Bank and southern Israel. The military said it was reviewing its attempt to intercept the missiles.

Houthi-run Al-Masirah TV reported that the strikes on Sunday night hit the ports as well as the Ras Kanatib power station, north of Hudaydah, but it provided no further details on damage or casualties.

The Israeli military said about 20 fighter jets carried out the operation “in response to the repeated attacks by the Houthi terrorist regime against the State of Israel, its civilians, and civilian infrastructure, including the launching of UAVs and surface-to-surface missiles toward Israeli territory”.

It alleged that the ports were used to transfer weapons from Iran and that Houthi forces had installed a radar system on the Bahamas-flagged Galaxy Leader “to track vessels in the international maritime arena to facilitate further terrorist activities”.

The Israeli military said the Ras Kanatib power plant, which supplies electricity to the nearby cities of Ibb and Taizz, was used to power Houthi military operations.

Israeli Defence Minister Israel Katz warned that the Houthis “will continue to pay a heavy price for their actions”.

“The fate of Yemen is the same as the fate of Tehran. Anyone who tries to harm Israel will be harmed, and anyone who raises a hand against Israel will have their hand cut off,” he said in a post on X.

Houthi military spokesman Yahya Sarea said in a statement on Monday that the group’s air defences “succeeded in confronting the Zionist aggression against our country and thwarting its plan to target a number of Yemeni cities”.

“In retaliation to this aggression, and in continuation of triumphing for the oppressed Palestinian people, the missile and UAV forces carried out a joint military operation using 11 missiles and drones,” he added, identifying the targets as Tel Aviv’s Ben Gurion airport, the ports of Ashdod and Eilat, and a power station in Ashkelon.

Sarea also declared that the Houthis were “fully prepared for a sustained and prolonged confrontation” with Israel.

Getty Images Yemen's port city of Hudaydah after it was struck by Israel on 6 May 2025.Getty Images

Yemen’s port city of Hudaydah after it was struck by Israel in May 2025

The Houthis have controlled much of north-western Yemen since 2014, when they ousted the internationally-recognised government from the capital, Sanaa, and sparked a devastating civil war.

Since the start of the war between Israel and Hamas in Gaza in October 2023, the Houthis have regularly launched missiles at Israel and attacked commercial ships in the Red Sea and Gulf of Aden, saying they are acting in solidarity with the Palestinians.

They have so far sunk two vessels, seized a third – the Galaxy Star – and killed four crew members. The 25-strong crew of Galaxy Leader were released in January 2025.

In May, the Houthis agreed a ceasefire deal with the US following seven weeks of intensified US strikes on Yemen in response to the attacks on international shipping.

However, the group said the agreement did not include an end to attacks on Israel, which has conducted multiple rounds of retaliatory strikes on Yemen.

In May, Israeli navy ships struck targets in Hudaydah, which is the main entry point for food and other humanitarian aid for millions of Yemenis.

As well as claiming to have fired at Ben Gurion airport, the Houthis also said they targeted a Liberian-flagged, Greek-operated bulk carrier Magic Seas in the Red Sea.

The UK Maritime Trade Operations (UKMTO) agency said the ship was 51 nautical miles (94km) first attacked with gunfire and self-propelled grenades fired from multiple small boats. Armed security teams on board returned fire, it added.

Maritime security firm Ambrey said the Magic Seas was later also targeted with four unmanned surface vehicles, or sea drones, and missiles. Two of the drones hit the port side of the vessel, damaging it cargo and causing a fire, it added.

The UKMTO said the crew were safe after being rescued by a passing merchant vessel.



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Specs leak for three Samsung foldables ahead of Wednesday’s Unpacked

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With two days until the official launch, more details have leaked about the trio of foldable phones Samsung is about to reveal. The latest leak details the screens, storage, batteries, and other core specs of the Galaxy Z Fold 7, Z Flip 7, and new Z Flip 7 FE.

The new information comes from WinFuture’s Roland Quandt, who claims to have obtained official Samsung promotional materials for the new phones, which will be officially revealed at a Galaxy Unpacked event this Wednesday, July 9th.

The Fold 7 is expected to be substantially thinner than its predecessors, and Quandt quotes marketing materials that say it will measure 4.2mm thick when unfolded, and 8.9mm folded. That would make it the same thickness as the Oppo Find N5, and just 0.1mm thicker than Honor’s Magic V5, though at 216g it would actually be the lightest book-style foldable phone yet.

It cuts the weight despite having bigger screens than the Fold 6 — 6.5 inches on the outside, and 8 inches on the inside — and squeezing in the exact same battery capacity of 4,400mAh. As expected it’ll be powered by Qualcomm’s Snapdragon 8 Elite chipset, with either 256GB or 512GB of storage. This may vary by market however, as in a previous post Quandt reported on a 1TB version of the Fold 7, in line with what it offers for the current Fold 6. The only camera detail listed is a resolution of 200 megapixels, presumably for the main camera, and it will apparently launch in blue, black, and silver.

The smaller Flip 7 is just as interesting. Quandt claims that it will have a substantially larger 4.1-inch cover screen, sharing an image that shows this will wrap right around the two camera lenses, just like on Motorola’s recent Razr flip phones. That design appeared over the weekend in an alleged hands-on video of the new Z Flip, and has been seen in renders since March.

The Flip 7 is also tipped to be substantially thinner than older models despite its bigger 4,300mAh battery, only a little smaller than the Fold 7’s. Storage options and colors are the same as the bigger phone too, though the Flip sticks to a 50-megapixel main camera.

Quandt also has a few details on the long-rumored Z Flip 7 FE, expected to be a cheaper take on the flip phone. It drops to 128GB and 256GB storage, along with a smaller 4,000mAh battery. It has the same screen sizes as the main Flip 7, suggesting that it too will use the wrap-around cover display design, though that contradicts earlier reports that it will reuse the Flip 6’s design. It’s apparently only launching in black and white versions.



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