※ [Global Morning Briefing] summarizes global news reported by The Seoul Economic Daily.
Massive flooding and landslides in the Himalayan border area between Nepal and China's Tibet have left eight South Koreans working on a hydropower plant construction project out of contact and 10 others stranded, prompting the government to activate emergency response measures. According to Reuters and other outlets on the 26th, the flooding in the Rasuwa area of Bagmati Province, north of Kathmandu, cut off roads, communications and power supplies, submerged entire villages and washed away homes and vehicles.
The Ministry of Foreign Affairs said it has been unable to reach eight employees of Doosan Enerbility and Korea South-East Power. At the Upper Trishuli-1 hydropower plant site, where Doosan Enerbility handled engineering, procurement and construction, five of the 15 employees present at the time of the disaster are out of contact. The company has set up an emergency response headquarters and plans to send a response team, including Chief Executive Officer Jung Yeon-in, to the site on the 27th. Korea South-East Power has also launched a response after losing contact with three of its seven dispatched personnel.
The government convened an overseas citizens protection task force headed by Foreign Minister Cho Hyun to discuss response measures and decided to dispatch a joint rapid response team from the Ministry of Foreign Affairs, the National Fire Agency and the National Police Agency to the site. President Lee Jae-myung instructed officials to mobilize all available means for search and rescue operations, presidential spokesperson Kang Yu-jung said.
The flooding is believed to have been caused by abnormally high temperatures melting Himalayan snow and ice, which then flowed into rivers. In August last year, a similar flash flood in the Rasuwa area killed nine people. According to Nepal's police and tourism authority, the disaster has killed at least 19 people, while 384 travelers, including 291 foreigners, are missing.
Unitree Soars on China Policy Boost, but Industrial Sales Are Just 9%
Shares of Chinese humanoid robot maker Unitree surged more than 460% on their first day of trading, only to fall to half their peak within a week, sounding an alarm over overheated investor sentiment toward Chinese robotics stocks. On the Shanghai exchange on the 26th, Unitree closed at 591.59 yuan, down 1.86% from the previous session and marking a fourth straight day of declines. That marks a sharp reversal from its debut on the 19th, when the stock closed at 845 yuan, more than 460% above its offering price of 150.8 yuan.
Behind the plunge lies a wide gap between the company's valuation and its actual earnings. Before the listing, brokerages had put its fair market capitalization at around 100 billion yuan, but the figure soared to 444.9 billion yuan on the debut day. Earnings also raised concerns. According to the prospectus, 73.6% of humanoid robot revenue in the first three quarters of last year came from orders by universities and research institutes, while actual industrial applications accounted for just 9%. Net profit in the first quarter of this year fell 53% from a year earlier. Decisively, investor sentiment cooled sharply after founder and Chief Executive Wang Xingxing spoke more cautiously than previously expected about the timeline for commercializing humanoid robots at a conference in Beijing on the 20th.
Experts say China's initial public offering system itself needs to be reviewed. Shen Meng, a director at Chanson Capital, criticized the structure as one in which ordinary investors bear risks after listing that companies should have shouldered while still private. Zhu Peida, an associate dean at Singapore Management University, said investor expectations for similar companies going public in the future are likely to be lower.
Canada Hits U.S. With Tariffs of Up to 50%, Braces for Long Fight After Midterms
The Canadian government will impose retaliatory tariffs of up to 50% on $20 billion worth of U.S. products starting on the 8th of next month, squarely countering U.S. President Donald Trump's tariff measures. On the 25th, the government announced tariffs of 15% to 50% on about 700 items, along with a 7.5 billion Canadian dollar support package for affected companies and workers.
By category, steel and aluminum products, furniture and clothing face a 50% tariff, while cheese, home appliances, some seafood and steel and aluminum derivative products face 25%, and machinery, industrial tools and farm equipment face 15%. Notably, many of the targeted items, including processed cheese and washing machines and dryers, are produced in states with strong Republican bases such as Wisconsin, Maine and Kentucky.
The move responds to Trump's imposition of 50% tariffs on $20 billion worth of Canadian products starting on the 22nd of this month. Canada said it matched the scale and rates of the U.S. tariffs exactly. According to Bloomberg, Prime Minister Mark Carney's cabinet sees little chance of resuming negotiations before the U.S. midterm elections in November and is preparing for a prolonged standoff.
Trump had signaled the tariffs on the 20th of last month, arguing that Canada discriminates against the United States in the automotive, alcohol and dairy industries. The two countries extended their negotiating deadline and pursued last-minute talks but ultimately failed to find common ground.
