The growing use of Western sanctions and export controls aimed at using trade to strong-arm governments has fostered a global shadow economy, with China at its center. Trade data and observations from Western officials suggest the sanctioned authoritarian regimes collectively now have the economy of scale to shield them from Washington’s financial warfare. The WSJ’s Rosie Ettenheim and Ian Talley report that the “axis of evasion” includes Russia, Iran, Venezuela and North Korea—nations with trade interests aligned in key areas such as China’s need for oil. The oil-exporting countries gain revenue they can use to buy sanctioned goods from China. For instance, data show China has supplanted Russia’s loss of Western access to high-priority goods that have both civilian and military uses. The countries’ use of Chinese currency and payment systems for that trade restricts Western authorities’ access to financial data and weakens their ability to enforce sanctions.

• China plans to impose export controls on billions of dollars of aviation equipment, technology and software. (WSJ)
• China lifted bans on several Australian beef exporters. (Bloomberg)

New technology may give a boost to U.S. efforts to build a solar-energy supply chain outside China. South Korean-owned Qcells says it plans to deploy technology at its new plant under construction in Georgia that aims to simplify one of the most cumbersome steps in solar manufacturing. The WSJ’s Amrith Ramkumar reports the system developed by an Israeli startup also would cut costs by reducing the amount of silver needed to capture sunlight on the panels, a powerful saving for manufacturers looking to compete with low-cost Chinese products. Plummeting costs have made solar power one of the cheapest and fastest-growing sources of energy globally, and Qcells sees a multibillion-dollar opportunity in its Georgia venture. The tech startup, Lumet, is talking to other potential customers and plans to establish factories in the U.S. and China to begin production next year, suggesting an eco-system of suppliers is already forming.

U.S. imports jumped 3.1% in April and the goods trade deficit widened to the highest level since May 2022. (MarketWatch)

Estimated U.S. economic growth for the first quarter was revised downward to 1.3%. (MarketWatch)

Canada’s exports by value fell 1.3% in April, largely on falling crude prices. (Dow Jones Newswires)

Taiwan expects to triple its economic growth rate this year as strong demand for new technology boosts exports. (WSJ)

Kohl’s lost $27 million last quarter as comparable-store sales fell 4.4%. (WSJ)

Gap snapped a series of lackluster reports with 3% growth in sales last quarter. (WSJ)

Best Buy’s same-store sales fell a worse-than-expected 6.1% in the retailer’s fiscal first quarter. (Barron’s)

Grocery micro-fulfillment specialist Takeoff Technologies filed for bankruptcy protection and plans to sell its assets. (WSJ)

The Trucking Association of New York is suing authorities over a congestion pricing plan they say would violate constitutional protections for interstate commerce. (CBS)

Nippon Steel received all regulatory approvals outside the U.S. for its proposed acquisition of U.S. Steel. (Reuters)

The United Nations has logged a growing number of crew members abandoned by shipowners and stuck at sea for months or years. (Associated Press)

Bulgaria, Romania and Turkey are forming a Black Sea task force to clear Russian mines from the trade corridor. (Seatrade Maritime)

CMA CGM will pay nearly $2 million to settle charges that it wrongly billed third-party. (Splash 247)

Frontline’s first-quarter profit fell 9.4% to $180.8 million as the tanker operator took in its final ships purchased from Euronav. (TradeWinds)

Greek shipowner Evangelos Marinakis is set to order 10 midsize containerships with LNG dual-fuel capability from a Chinese shipbuilder. (TradeWinds)

American Airlines and United Airlines are struggling to add capacity under persistent backlogs from their suppliers. (Aviation Week)

Ross Stores is opening a 1.7 million-square-foot distribution center south of Greensboro, N.C. (WGPH)

Toyota Material Handling is building a $100 million factory in Columbus, Ind., to make electric forklifts. (DC Velocity)

• While American importers are decrying levies on Chinese goods, an array of U.S. apparel makers say the tariffs level an uneven playing field. 
• Healthcare providers are wary of relying on a handful of dominant tech providers, especially after the February hack of a critical UnitedHealth Group unit.
• Private-equity firms remain reluctant to add staff or raise pay despite an improving outlook for the industry.
• Applebee’s and IHOP promotions like $1 margaritas and 50-cent wings aim to bring customers into restaurants. They are also meant to be profitable for franchisees.
• 🎧 Listen to Moderna’s CIO describe how technology enabled the biotech’s first major distribution efforts during the pandemic and how it now plans to leverage tech to lower costs.

Paul Page is editor of WSJ Logistics Report. Reach him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on X at @WSJLogistics.