Chinese shoppers to the rescue

Areal Armani polo shirt might cost 1,400 yuan ($190) if bought from the fashion house’s shop on JD.com, one of China’s biggest e-commerce platforms. But search for “Armani manufacturer” on the same app and similar shirts can be found for just 60 yuan.

The cheaper offerings seem to have been made by Armani suppliers and sold directly to local consumers without the brand’s mark-ups — a steal for Chinese shoppers, if true. American tariffs on many Chinese goods could be a hefty 145pc after the 90-day pause, meaning that many factory operators are looking to sell their wares within China instead of exporting them.

This is not the first time China has tried to kick-start a national market for export goods. But previous efforts did not make much difference over the longer term. And a lot now relies on domestic consumers.

(Adapted from “Will China’s Shoppers Cushion The Trumpian Blow?” published on April 24, 2025, by The Economist)

Changing nature of crypto

When offered a Boeing 747 by the government of Qatar to replace Air Force One, President Donald Trump responded: why not? Only someone dumb would turn down free money. No presidency has generated so many conflicts of interest at such speed in modern history as Donald Trump’s. The worst example of this is on blockchains, home to trillions of dollars in cryptocurrencies.

Over the past six months crypto has taken on a new role at the centre of American public life. Several cabinet officials have large investments in digital assets, where none did previously. Crypto enthusiasts help run regulatory agencies. The president’s sons tout their crypto ventures around the world.

However, the leading lights in crypto land may come to regret the bargains struck in Washington as the industry that dreamed of being above politics has become synonymous with self-dealing.

(Adapted from “Crypto Has Become The Ultimate Swamp Asset,” published on May 15, 2025, by The Economist)

When old is too old

Warren Buffett can’t put his finger on exactly when he decided to hand over the reins of Berkshire Hathaway to Greg Abel. But in recent years Mr Buffett observed just how much energy his appointed successor brought to each working day. And how his own days had slowed. The two men were operating at different speeds — increasingly so. “There was no magic moment,” Mr Buffett, now 94, said. “How do you know the day that you become old?”Berkshire shareholders and onlookers have long wondered how anyone could replace Mr Buffett, for decades a towering figure in American business and finance. But as he passed his 90th birthday, Buffett began to experience something most people come to accept much earlier in life: his age. In the past year, those thoughts and feelings cohered into a decision leading to his plan to step down as CEO in December.

(Adapted from “Warren Buffett Reveals He Stepped Down After Finally Feeling His Age,” by Karen Langley, published on May 14, 2025, by the Wall Street Journal)

Stop-gap deals

For weeks what was in effect an embargo between America and China had the world economy teetering on the brink. Now a headlong plunge has been postponed. On May 11 the two countries agreed to slash tariffs on each other for 90 days while they talked further. Investors are rejoicing. Those who see Donald Trump’s tariffs as mere preludes to deals are jubilant; the president’s more level-headed advisers appear to have muscled out the cranks. Do not mistake the reversal of folly for the triumph of sanity, though. Trade policy between the world’s two largest economies is still more restrictive and less predictable than it was before Donald Trump took office. A crash has been averted but as long as Mr Trump is in the White House, another conflagration cannot be ruled out. Barriers between America and China are still far too high. So is uncertainty.

(Adapted from “Stop-Gap Deals Do Not Mean Donald Trump’s Trade War Is Over,” published on May 14, 2025, by The Economist)

Published in Dawn, The Business and Finance Weekly, May 19th, 2025