• China’s manufacturing sector is feeling the effects of global trade tensions. One factory owner, Mike Chai, is having to cut labour costs by shortening shifts and asking employees to take unpaid leave. This is having a hidden negative effect on the Chinese economy. The factory is finding it hard to compete with other Chinese companies. These companies were stopped from selling to the US by tariffs. Now they are trying very hard to sell to Chai’s customers in Australia.

• In other news, China has made it harder for Nvidia to get back the money it lost because of US export restrictions. Reports say that Chinese authorities have told local companies, especially ones working on government or national security projects, not to use Nvidia’s H20 processors. The guidance, which has included sending notices and raising security concerns, could stop the Trump administration’s recent policy allowing the sale of these less-advanced chips to China in exchange for a share of the money made.

• In Japan, the Nikkei stock index hit a new record high on Tuesday, following the strong performance of global markets. Experts say the rally happened because Japan’s economy is doing worse than other major markets, the yen is weak, which helps exports, and because people are feeling hopeful about trade, including a temporary break in the US-China trade war.