FirstFT: Jake Sullivan assures Beijing that Kamala Harris would ‘responsibly manage’ relations

Good morning. Today we’re covering:

• The conviction of two Hong Kong journalists under a colonial-era sedition law

• Singapore’s disillusioned middle class

• Japan’s zombie start-ups

But we start in Beijing, where US national security adviser Jake Sullivan told Chinese leaders that Kamala Harris would “responsibly manage” relations between the two superpowers if she wins the presidential election in November.

The comments from Sullivan, who met yesterday with President Xi Jinping, are intended to reassure Chinese policymakers that Harris would not take a more hostile approach to the relationship than US President Joe Biden.

Beijing has become increasingly concerned about how a Harris administration would handle the relationship with China and who would be her closest advisers on the matter. While Harris has briefly met the Chinese president and his number two, Premier Li Qiang, little is known of the detail of her views on the country.

As well as meeting Xi, Sullivan also had a highly unusual meeting yesterday with General Zhang Youxia, one of China’s most powerful military officials. Joe Leahy has more on the talks in Beijing.

Here’s what else I’m keeping tabs on today and over the weekend:

• Economic data: India publishes its latest growth figures. Japan, South Korea and Thailand report their industrial production indices for July.

• Results: China Construction Bank and the Industrial & Commercial Bank of China report.

How well did you keep up with the news this week? Take our quiz.

Five more top stories

1. A court in Hong Kong has convicted two journalists from a defunct pro-democracy news website of sedition in a landmark trial that highlighted shrinking press freedoms in the Chinese territory. Their conviction was the first under the law against journalists since Hong Kong was handed back to China from British administration in 1997.

2. Foreign investors are pulling money out of India’s equity market, cutting their exposure as the US interest rate cycle turns and millions of domestic savers continue to pile into richly valued stocks. Year-to-date inflows stood at $2.6bn, well below the $22bn recorded last year.

3. Donald Trump’s running mate JD Vance has urged tech billionaire Peter Thiel to “get off the sidelines” and help bankroll the Republicans’ White House bid. Vance’s plea to Thiel came in an interview with the FT, where he also called for the break-up of Google.

• Republican anxiety: Donald Trump is facing doubts from Republicans about his plan to win back the White House as they fret he will be unable to recover the momentum lost to Kamala Harris in recent weeks.

4. Pakistani businesses say internet disruptions this month have harmed their businesses and unsettled investors at a time when the country is counting on the information technology sector to help break a cycle of economic crises and bailouts. Digital rights activists believe the disruption is owing to the government installing “firewall” technology to filter content.

5. A Ukrainian F-16 fighter jet crashed on Monday during a mission to shoot down Russian missiles and drones in one of the largest aerial attacks mounted by Moscow since its full-scale invasion, Kyiv said. The crash marked the first loss of one of Ukraine’s US-made F-16s since President Volodymyr Zelenskyy announced their delivery earlier this month.

Do you have questions about today’s stories or about the newsletter itself? Reply to this email with your questions, your name and where you’re writing from. We’ll answer them in a special weekend edition of FirstFT.

News in-depth

Singapore’s National Day rally is traditionally an opportunity for the prime minister to outline domestic policy plans. But Lawrence Wong’s address this year sounded an uncharacteristically ominous tone, reflecting the government’s concerns about rising living costs in Singapore. The increased disillusionment of Singapore’s middle class, under pressure from high housing prices, threatens the fragile consensus that has underpinned the city-state’s growth and stability for decades, analysts said.

We’re also reading . . . 

Chart of the day

China’s use of the renminbi in cross-border transactions has reached record highs this year, as closer ties with Russia bolster Beijing’s efforts to internationalise its currency and cut dependence on the US dollar. In July, 53 per cent of China’s inbound and outbound transactions used the Chinese currency, up from about 40 per cent for the same month in 2021.

Take a break from the news

A silent loner returns to his desolate hometown from prison in the haunting, hallucinatory Chinese film Black Dog. Set on eve of the Beijing Olympics, director Guan Hu’s film could also be read as a commentary on China’s specific socio-economic condition in 2008 and since, writes Jonathan Romney.

Additional contributions from Harvey Nriapia and Tee Zhuo