The EU has further amended environmental and sustainability regulations, as Brussels’ drive to simplify new rules and boost competitiveness continues.
Meanwhile, the US has said it will allow Nvidia to export its powerful H200 chips to China in exchange for a fee, while the American agriculture department is paying billions to farmers to compensate for increased production costs and damage resulting from “market disruptions”.
EU simplification drive continues
The EU has changed proposed corporate sustainability reporting requirements, as European Commission (EC) President Ursula von der Leyen’s de-regulation drive continues.
A press release from the European Council said the that the “simplifications” would apply to the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). The changes will reportedly reduce reporting and other administrative burdens, particularly for smaller companies.
The rules would have required companies to carry out environmental and human rights due diligence checks across their operations before providing detailed information about impacts in these areas.
Under the draft agreement, only companies with more than 1000 employees and with over €450 million turnover will have to report under the CSRD.
The FT also reports that the EC is considering expanding its Carbon Bordering Adjustment Mechanism (CBAM) to include car doors, washing machines and kitchen stoves. The EU has also postponed its “made in Europe” plan following a backlash from member nations.
A formal vote on CSRD and CSDDD is expected next Tuesday.
Chips to China
US President Donald Trump has said on social media that he will allow NVIDIA to ship its H200 products to “approved customers in China, and other Countries, under conditions that allow for continued strong National Security.” The post also said that 25% would be paid to the US.
This decision will apply to other chip companies, like AMD.
In August, Trump had reversed a ban on powerful chips being sold to China, asking for 15% of Chinese revenues to be paid to the US governments. The FT reports that no legal mechanism currently exists to allow these payments to be made.
Senior Democratic figures, including senators Jeanne Shaheen, Michael Bennet and Chris Coons, blasted the decision as a “colossal economic and national security failure.”
“The H200s are vastly more capable than anything China can make and gifting them to Beijing would squander America’s primary advantage in the AI race.”
Farmer backlash
Trump has announced a US$12bn ‘bridge payment’ for US farmers in response to “temporary market disruptions and increased production costs”, as domestic criticism of the tariff regime continues to grow.
The US agriculture department said that billions would be paid to producers of stables like corn, barley, chickpeas and flax based on a uniform formula to calculate the loses they have made over 2025.
While agriculture secretary, Brooke Rollins, attempted to blame previous president Joe Biden, the Trump administration has been facing growing political pressure over the rising cost of living.
A recent special election in a normally dependable Republican district in Tennessee turned into a far closer election than normal last week, and research from polling company Gallup has found that economic confidence has fallen to a 17-month low.
Other news
- The UK government has released its anti-corruption strategy, with a specialist police unit and tougher safeguards targeting corruption insiders and “professional enablers” of dirty money
- Labour MP for Welwyn Hatfield, Andrew Lewin, has written in LabourList that Liberal Democrats efforts to immediately begin talks on a UK-EU Customs Union “is not the right approach and, at this moment in time, would actively be counter-productive”
- Ukraine is preparing a revised peace plan to submit to the White House, with president Volodymyr Zelensky ruling out territorial concessions
- The International Aviation Transport Association has said that bottlenecks in the aerospace supply chain and sluggish global trade are continuing to impact the industry, despite air cargo showing unexpected resilience
Yesterday in Trade
- China’s exports passed the US$1trn milestone, bringing more security of Beijing’s trade practices
- The US federal bank decision on interest rates looms, with a decision expected tomorrow
- The UK government has promised 50,000 new apprenticeships in a move aimed at curbing youth unemployment
