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China and U.S. clash again on trade and regional security -Reuters

[A]t the Shangri-La Dialogue in Singapore, Asia’s premier defense summit, China’s Defense Minister Wei Fenghe warned the United States not to meddle in security disputes over Taiwan and the South China Sea.

On Saturday, acting U.S. Defense Secretary Patrick Shanahan told the meeting that the United States would no longer “tiptoe” around Chinese behavior in Asia.

Modi eyes fiercer rivalry with China over neighbors in second term India to be tested in Sri Lanka and Bangladesh while ignoring Pakistan -Nikkei

India Roiled as Trump Yanks Its Status as a Developing Nation -Bloomberg 

“I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,” Trump said in a proclamation. “Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.”

Strategic imperatives for Indonesia’s foreign policy One area that needs careful thinking and debate is foreign policy. It is time for Indonesia, after a focus on strengthening national capacity (economic development) for almost five years, to start deepening its regional and international engagement. -The Jakarta Post

 GLOBAL BUSINESS

China strikes defiant tone on trade in new white paper, blaming U.S. for 'unacceptable' demands -The Japan Times

“Whatever the future might bring, China is confident of meeting challenges head on, turning risks into opportunities and opening new chapters,” it said. “China remains committed to its own cause no matter how the external environment changes.”

US sanctions threaten to sink China at sea Bipartisan bill if passed will severely sanction a long list of Chinese entities and individuals involved in Beijing’s expansion and militarization in the South China Sea -The Asia Times

Translation: China's New Draft 'Data Security Management Measures' Rules for personal information, 'important data,' and cybersecurity practices open for public comment -New America

As China Takes Aim, Silicon Valley Braces for Pain The Chinese government said Friday that it was putting together an “unreliable entities list,” a counterattack against the United States for denying important technology to Chinese companies. No companies were named or details given, but tech firms seemed all but assured of being a prime target. -NYT

Twitter apologizes for suspending accounts critical of China ahead of Tiananmen anniversary -The Japan Times

While Huawei will be bruised by tech war, some Chinese suppliers could suffer a knock-out blow -SCMP

·       Small Chinese suppliers are worried that wider US-China trade standoff could result in lost orders and business going elsewhere

China Targets FedEx in ‘Warning’ to U.S. As details of China’s criteria trickled out, the investigation into FedEx’s “wrongful delivery of packages” was framed by the state news agency as a warning by Beijing after the Trump administration imposed a ban on business with telecom giant Huawei Technologies Co. -Bloomberg

 SAP to launch its first Asian startup incubator in Japan German enterprise software giant unveils Chinese and Indian ambitions -Nikkei

Toshiba to sell U.S. LNG business to French energy giant Total Toshiba Corp. said Saturday it will sell its U.S. liquefied natural gas business to French energy giant Total SA after a previous deal with a Chinese gas firm was canceled earlier this year. -The Japan Times

Trade dispute shifts business out of the ‘Factory of the World’ Vietnam and other Asian nations are benefiting, but labor quality is an issue -Taipei Times

 More supply chains to shift to Việt Nam, ASEAN -VNews

 “The changes in global trade are causing businesses to revisit their supply chain investment and capacity strategies, but we have yet to see this convert into wide-scale shifts to Southeast Asia, South Asia or other parts of the world.”

Melco buy-in triggers regulatory review of Crown's $1.5 billion Sydney casino An Australian regulator said it will review its approval for Crown Resorts’ $1.5 billion casino being built in Sydney, after the gambling giant’s founder James Packer sold nearly half his stake in the company to Hong Kong’s Melco Resorts. -Reuters

New PNG leader drops a nationalistic gauntlet Prime Minister James Marape railed against multinational energy companies and vowed to “take back” the economy in his inaugural address but few see revolution on the horizon -Asia Times

Total expects Papua New Guinea to honour LNG deal French energy company Total said on Friday that it expected Papua New Guinea’s incoming government to honour a contract signed by the previous administration for a liquefied natural gas project in the South Pacific archipelago. -Reuters

GLOBAL MACRO

Is Trump now launching a currency war, too? The US Treasury Department added Singapore, Malaysia and Vietnam to its watchlist. China, Japan and South Korea are there too -Asia Times

If China cuts rare earth supplies, what can the US do? Short-term stockpiling and a mid-term deal with Japan could help solve the problem -Asia Times

China produces about 97% of rare earth ore, 97% of rare earth oxides, 89% of rare earth alloys, 75% of neodymium iron boron magnets (NdFeB) and 60% of samarium cobalt magnets (SmCo). The United States almost entirely lacks the refining, fabricating, metal-making, alloying and magnet manufacturing capacity to process rare earths and is nearly completely dependent on China

People need to calm down about rare earth issue -Taipei Times

Still, Washington’s relaxed approach to the 2010 flap was, in general, the right one. Supplies of rare materials are, by their nature, concentrated in a few countries. Unless we are truly heading to an autarkic war footing, those supply chains will continue to crisscross the globe. Most of us will barely have to think about them until the next panic breaks out.

Beijing warns US farmers may lose China market for good, but plays down tariffs impact at home -SCMP

·       Top agriculture official says Chinese farmers can export products to non-US markets to weather impact of trade war

·       Country will also be able to source enough soybeans to meet domestic demand, according to Han Jun

Indonesia wins S&P upgrade as Jokowi victory fuels growth bets -The Business Times