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Hong Kong’s Leader, Yielding to Protests, Suspends Extradition Bill Carrie Lam, Hong Kong’s chief executive, on Saturday expressed “sorrow and regret” for having failed to convince the public that an extradition bill was needed. -NYT

Thousands march in Hong Kong on Sunday despite government climbdown Huge protest follows demonstrations days earlier against extradition law, where riot police fired tear gas and rubber bullets -Asian Times

China is courting trouble in Hong Kong Beijing risks goading US into revoking city's economic and financial privileges -Nikkei

In 1992, the U.S. Congress passed the U.S.-Hong Kong Policy Act, to continue treating the city as a separate entity from mainland China. The law grants Hong Kong economic and trading privileges, such as continued access to sensitive technologies and the free exchange of the U.S. dollar with the Hong Kong dollar.

The U.S.-Hong Kong Policy Act has teeth to deter China from violating its commitments. In particular, it explicitly empowers the U.S. President to issue an executive order suspending some or all of Hong Kong's privileges if he or she determines that "Hong Kong is not sufficiently autonomous to justify treatment under a particular law of the United States."

What will Narendra Modi do in his new term as India’s prime minister? His choice of ministers suggests he does not plan to do much delegating -The Economist

Panelo says possible for PH to cut ties with China over boat sinking Presidential Spokesperson Salvador Panelo says an 'outraged' President Rodrigo Duterte draws the line when Chinese acts involve physical harm to Filipinos -Rappler

GLOBAL BUSINESS

Broadcom's $2 billion warning rattles global chip sector Broadcom Inc sent a shockwave through the global chipmaking industry on Friday with its forecast that U.S.-China trade tensions and the ban on doing business with Huawei Technologies would knock $2 billion off the company’s sales this year. -Reuters

Huawei Digs In for a Drawn-Out Battle With Trump’s White House With its American supply chain drying up, the Chinese tech giant is working on contingency plans. -Bloomberg Businessweek

China's FedEx probe should not be seen as retaliation: Xinhua

Section 301 update: List 3 exclusion process to commence Summer 2019 Section 301 List 3 covers $200 billion worth of Chinese goods and 5,745 product lines defined at eight-digit level of the Harmonised Tariff Schedule of the United States (HTSUS). Pursuant to a 9 May 2019 notice published by the USTR, the tariff rate applicable to List 3 goods was increased from 10% to 25% on 10 May 2019. -International Law Office

Japanese companies opposed to U.S. slapping additional tariffs on Chinese goods U.S. subsidiaries of Japanese companies, as well as American and Chinese businesses, have voiced opposition to President Donald Trump’s proposed tariffs of up to 25 percent on an additional $300 billion of Chinese products. -The Japan Times

Companies such as Epson America Inc., Sony Interactive Entertainment LLC and Mitsubishi Chemical Corp., as well as U.S. industry groups, expressed their stances before the Office of the U.S. Trade Representative holds a hearing starting next week on the proposed tariffs.

Japan inches toward easing foreign workers' culture shock Newcomers still face labor, lifestyle and language stumbling blocks -Nikkei

India to impose retaliatory tariffs on 28 U.S. goods from Sunday India on Saturday amended its previous order “to implement the imposition of retaliatory duties on 28 specified goods originating in or exported from USA” while preserving the existing rate for these goods for all other countries, the government notification said. -Reuters

Damaged Singapore-registered Japanese tanker arrives at UAE anchorage after Gulf attack -The Straits Times

Vietnam sees robust growth in Airbnb services There were 40,000 active Airbnb listings in Vietnam as of January this year compared to only 1,000 in 2015, according to the Homesharing Vietnam -VNExpress

GLOBAL MACRO

Trade war could cause global recession, Beijing official warns, as US investment growth in China sinks -SCMP

·       US investment in China grew 7.5 per cent between January and May, year on year, a much slower pace than the 24.3 per cent recorded between January and April

·       Ministry of Commerce spokesman Gao Deng says that the trade war ‘could cause a recession in the United States and global economies’

Indonesia expects more foreign investment after ratings bump S&P and others list country as 'BBB' as structural reforms look to continue -Nikkei

World Bank grants $49.6 million loan for Indonesia’s urban planning program -Jakarta Post

VPBank seeks to issue over $1 billion in international bonds Under the proposal, the Vietnamese private bank intends to offer $1 billion worth of bonds in the form of 3-5 year Euro Medium Term Notes to investors outside the U.S. and Canada, which will be listed on the Singapore Exchange (SGX). -VNExpress

Singapore investors snap up US$5 billion of China’s commercial properties, brushing aside trade war concerns -SCMP

Ministry plans to step up efforts to prevent seeds, saplings of high-end fruit varieties from being taken out of country The Agriculture, Forestry and Fisheries Ministry is set to launch full-fledged efforts to prevent “outflows” of domestically developed high-end fruit varieties to other countries. -The Japan Times

Pork imports skyrocket as African swine fever continues to spread -VNExpress