International News 12 September 2025
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Alibaba to Raise $3.2 Billion via Zero-Coupon Convertible Bonds for Cloud and Global Expansion
Alibaba announced plans to raise $3.2 billion through a zero-coupon convertible bond issuance maturing in September 2032, with the option to convert into its U.S.-listed shares. About 80% of proceeds will fund cloud computing investments—including data center construction, AI-driven technology upgrades, and service enhancements—while the remaining 20% will support global e-commerce expansion and operational efficiency. The move continues Alibaba’s strategy of convertible financing, following its $1.5 billion exchangeable bond in July and a $5 billion convertible bond in May 2024. The company has emphasized AI as the core driver of cloud growth, with CEO Eddie Wu highlighting over 100 billion yuan ($14 billion) invested in AI infrastructure, R&D, and product innovation last year. Despite weaker-than-expected overall earnings, Alibaba’s cloud division recorded robust momentum. The announcement coincided with China Pacific Insurance’s $2 billion zero-coupon convertible bond plan, underscoring Hong Kong’s buoyant equity-linked financing market, where such instruments have grown popular for balancing fixed returns with equity upside potential.
EU Officially Recognizes Malaysia’s MSPO as a Reliable Sustainability Standard
The European Union has officially recognized the Malaysian Sustainable Palm Oil (MSPO) certification as a credible sustainability standard with strong digital traceability, helping producers comply with the upcoming EU Deforestation Regulation (EUDR). The recognition, announced following a visit by EU Commissioner for Environment, Water Security, and Circular Economy Jessika Roswall to Malaysia, strengthens MSPO’s position as the country’s national sustainability framework. Mandatory since 2019, MSPO covers the entire palm oil value chain—from smallholders to processors—requiring legality, transparency, inclusivity, and accountability. It also enforces a strict cutoff date to ensure certified palm oil is deforestation-free and legally sourced. Malaysia’s Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, said the recognition reaffirms Malaysia’s leadership in sustainable palm oil. With more than half a million smallholders included, MSPO ensures traceability and compliance with global market expectations without leaving anyone behind. The EU-Malaysia joint statement also highlighted Malaysia’s progress in reducing deforestation to record-low levels, while pledging closer cooperation to support smallholders in meeting EUDR requirements for palm oil, rubber, timber, and cocoa exports to Europe.
Mexico Plans 50% Tariffs on Chinese and Asian Car Imports to Protect Jobs, Appease U.S.
Mexico announced plans to raise tariffs on cars from China and several Asian countries up to 50%, marking a major overhaul of its import duties. The move, which still requires congressional approval, aims to safeguard 325,000 industrial and manufacturing jobs and will cover imports worth about $52 billion. Current tariffs on Chinese cars stand at 20%, but Economy Minister Marcelo Ebrard said they would now be raised to the maximum allowed under WTO rules, alongside new levies on steel (35%), motorcycles, toys, and textiles (10–50%). Analysts say the decision also reflects pressure from the United States, which has urged Latin American nations to curb economic ties with China amid intensifying geopolitical competition. Countries without trade agreements with Mexico—such as China, South Korea, India, Indonesia, Russia, Thailand, and Turkey—will be most affected. By tightening tariffs, Mexico seeks both to shield local industry from low-priced imports and reassure Washington, which views China’s growing presence in Latin America as a strategic challenge.