This morning’s meeting in Busan, Korea was short and sweet. Goal achieved - the global meltdown that would have followed a rare-earth embargo by China has been avoided. What is more interesting is how it could change the current power set-up in Washington as Scott Bessent and Marco Rubio increasingly take centre stage.

The US is in a tizz about banning TikTok, taking the first steps towards protectionism, censorship and trade war – which will ultimately benefit no one. Both the US and China face significant economic challenges, and both are large markets. Is conflict the only choice?

As the UK and Yoorp prepare for a set-to over Sausages, the real issue remains inflation vs deflation. Are rising PPIs in China due to speculation on commodities boosting prices, is inflation due to supply glitches, and are the longer-term threats of Central Bank taper, growing West-East tension, and the reality of pandemic debt likely to tip us back into a deflationary cycle?

What’s really going on for Tesla in China? Global supply chains remain fragile as the Chinese flex their muscles and national buying power. That may prove problematic for western firms, and especially Tesla. But also it raises questions about investment imperatives on China growth vs flatline in the West.