FirstFT: China backtracks on no-fly zone

Good morning. China has backtracked on its plan to block some of the world’s busiest airspace near Taiwan this weekend — when G7 officials are also set to gather in nearby Japan.

Earlier this week the Chinese government said that it would impose the no-fly zone between April 16 and 18 about 157km north of Taiwan to conduct “aerospace activities”, which Taiwan’s defence ministry said could refer to a satellite launch.

This period would have coincided with the G7 foreign ministers’ meeting in Nagano, Japan. US secretary of state Antony Blinken would have needed to travel through the no-fly zone to reach the summit from Vietnam, which he is due to visit this weekend.

Yesterday, however, Taipei said Beijing had shortened the duration of the airspace closure to just 27 minutes from 9.30am to 9.57am on Sunday following fierce resistance from Taiwan.

Here’s what else I have tabs on today:

• Rahul Gandhi in court: The former leader of the Opposition Congress will be in court today to appeal against a defamation charge that has barred him from parliament.

• Thai New Year: The public holiday of Songkran is celebrated today. The Thailand stock exchange will be closed today and tomorrow.

• Dominion vs Fox News: The jury is set to be selected for voting-machine maker Dominion’s $1.6bn lawsuit against Fox News.

PS Is a Labour victory over the Conservatives inevitable? Join Stephen Bush, award-winning Financial Times columnist, and colleagues on April 19 as they tackle your questions in the run-up to the UK’s 2024 election. Register here for free today.

Five more top stories

1. Exclusive: SoftBank has moved to sell almost all of its remaining shareholding in Alibaba, limiting its exposure to China and raising cash as the market downturn pummels the value of its technology investments. The Japanese group has sold about $7.2bn worth of Alibaba shares this year through prepaid forward contracts, our analysis of regulatory filings has revealed.

2. US inflation eased last month to its lowest level in nearly two years. But an uptick in the core prices, which strips out volatile energy and food costs, suggests that price pressures for some goods and services are still elevated. That will keep pressure on the Federal Reserve to press ahead with another rate increase in May.

3. The global finance system’s top regulator has called for tougher rules in response to the recent banking turmoil, saying that the latest stresses were a reminder that financial stability is “not merely an abstract concept”. Read more on the letter published by Klaas Knot, chair of the Financial Stability Board.

4. Tens of thousands of Hongkongers who moved to the UK are being blocked from accessing as much as £2.2bn of pension assets. A group of more than 90,000 people is being “punished” for emigrating under the British National (Overseas) programme, according to the UK advocacy group Hong Kong Watch.

5. JPMorgan Chase has asked its managing directors to be in the office five days a week, underscoring how Wall Street is working to pull staff back to their desks. Other banks such as Goldman Sachs have also been trying to get staff to return to the office five days a week.

The Big Read

Governments have promised to plant 633mn hectares of trees — an area larger than the Amazon rainforest — to help save the planet. While the goal is laudable, is it remotely plausible? In this visual essay, the FT explores the idea of reforestation and its effects on the land and people.

We’re also reading . . . 

• Iran heats up: Iran’s hottest summer yet may be just around the corner. For the regime, fears are rising that the heat will incite new levels of civil disobedience from women casting off modest dress in favour of lighter, cooler clothing.

• South Korea’s foreign policy: Russia’s invasion of Ukraine has reminded South Korea’s western allies that the country remains frustratingly timid on the international stage, writes Seoul correspondent Christian Davies.

• Martin Wolf: The FT’s chief economics commentator looks at the future of Japanese monetary policy as the new governor of the country’s central bank takes up his post.

Chart of the day

The renminbi’s share of trade finance has more than doubled since Russia’s full-scale invasion of Ukraine, an FT analysis has found — a surge that analysts say reflects both greater use of China’s currency to facilitate trade with Russia and the rising cost of dollar financing.

Take a break from the news

New Zealand’s Stratford-Okahukura railway has long since been abandoned by regular train services. Now known as the Forgotten World Line, you can drive your own “rail cart” (which is really a golf buggy converted to run on rails) across 82km of a rugged landscape and remote hamlets . . . and past an unforgettable pub.

Additional contributions by Gordon Smith and Tee Zhuo