Faced with higher Western tariffs and weak demand at home, many Chinese factories are moving abroad, making everything from appliances to cars everywhere from North and South America to Eastern Europe.

The Wall Street Journal’s Hannah Miao and Stephen Wilmot write that more Chinese companies could be coming to the U.S., after President Trump and Chinese leader Xi Jinping reached a deal to establish a new bilateral “board of investment.” Yet many leaders worry the Chinese businesses will bring brutal competition with them, potentially crushing local incumbents and curbing salaries.

Gotion, a Chinese battery maker, planned to build a $2.4 billion plant in Michigan, but the project is at a standstill after years of local opposition. Another Chinese battery maker, CATL, had to settle for licensing its technology to companies such as Ford, which is building a $3 billion plant to make CATL-designed batteries. In Brazil and Hungary, EV seller BYD has been dogged by complaints that Chinese migrant workers hired to build its factories were subject to labor rights violations.

Some policymakers believe the investments could help reinvigorate local manufacturing industries. And with factories in China facing overcapacity, cutthroat competition and weak domestic consumption, it might be hard to keep Chinese manufacturers at bay.

• China’s industrial firms reported a 24.7% year-over-year profit increase in April. (WSJ)

Clandestine ship-to-ship oil transfers reveal a key strength of the Iranian regime and a major reason why it has held firm for so long against U.S. pressure: Iran can still sell its oil. The Journal’s Jon Emont and Rebecca Feng write that while Tehran would welcome relief from U.S. sanctions, the regime has developed a successful work-around that reduces American leverage in continuing negotiations.

On a May 8 visit by boat, Journal reporters watched as the Catalina 7, an aging vessel sanctioned by the U.S. for carrying Iranian crude, transferred oil through a thick hose with a ship whose name was covered by black paint. Old and rusting tankers like these form the “shadow fleet” that Iran relies on for nearly all of its oil exports.

To truly rein in this fleet, the U.S. would likely need to maintain a war-like footing against the ships indefinitely, keeping its blockade on the Strait of Hormuz, using military assets to intercept shadow-fleet ships and intensifying pressure on China. If it lets up, the oil would likely flow uninterrupted again, maritime experts say.

• U.S. forces shot down Iranian drones and hit a control station after Tehran targeted commercial ships in the Strait of Hormuz, officials said. (WSJ)
• The European Union clarified rules that will provide a legal pathway for ship recyclers to take "shadow-fleet" vessels off the water. (Dow Jones Risk Journal)
• There are no signs that jet-fuel supplies will be at risk from the Mideast war this summer, according to Germany’s Lufthansa, as imports from other regions increase. (WSJ)

• Manufacturing activity in the Richmond Fed’s region rose past expectations in May. (WSJ)
• The Bank of Mexico cut its 2026 economic-growth forecast following an unexpectedly weak first quarter. (Dow Jones Newswires)
• Two people died and nine others were missing after a chemical tank collapsed in Longview, Wash. (WSJ)
• Boeing's CEO said the company is ready to expand production of its 737 MAX models to 47 jets a month. (WSJ)
• Samsung Electronics’ unionized workers approved a tentative bonus-pay deal, averting a strike at the world’s largest memory-chip maker. (WSJ)
• Volvo Car said it was cleared to import and sell cars in the U.S., ending concerns about the company’s China ties. (WSJ)
• U.S. Customs and Border Protection said about $20.6 billion in refund claims were headed to importers who successfully filed claims online. (Bloomberg)
• New Jersey-based PalletTrader plans to expand its managed service program and digital marketplace to Canadian shippers. (DC Velocity)
• At least 60 oil and refined-products shipments have been made by foreign-flagged tankers between U.S. ports since the Trump administration waived the Jones Act in March, according to RBN Energy. (gCaptain)

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.