India is actively addressing the surge in steel imports, particularly from China, as it navigates challenges in its domestic steel industry. Recently, the steel and trade ministries initiated discussions to counteract the influx of inexpensive Chinese steel products, which have been a cause for concern among top Indian producers.

Indian producers seek higher tariffs on imports

Now, let's look at WION's monthly global economic health check. First, let's look at how global markets performed in June...

Global economic health check for June

A rocket belonging to a private Chinese firm crashed into a hilly area in central China after malfunctioning and launching by itself on Sunday (June 30).

Beijing Tianbing Technology Co, also known as Space Pioneer, in a statement on Sunday said that the first stage of its Tianlong-3 rocket experienced a structural failure during a test. This, the company said, caused it to detach from its launch pad and crash in a hilly area in Gongyi, central China.

Space Pioneer explained that the first stage of the Tianlong-3 ignited as expected during a hot test, but then detached from the test bench because of structural failure, landing about 1.5 km (0.93 miles) away in hilly terrain.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/science/nasa-backs-plan-to-make-homes-with-fungi-on-moon-and-mars-736407">NASA backs plan to make homes with fungi on Moon and Mars</a>

<h2>Were there any casualties?</h2>

As per Reuters, initial investigations revealed no casualties. However, the crash did cause a fire.

In a statement on its official WeChat account, Space Pioneer detailed that parts of the rocket stage were scattered within a designated "safe area," but caused a local fire.&nbsp;

The fire was extinguished, reported Gongyi emergency management bureau. It also confirmed that there were no injuries.

While falling rocket debris in China is not uncommon, it is rare for a rocket under development to make an unintended flight and crash outside its test site.

These sites are typically located along China's coast for safety reasons. However, some, like the Space Pioneer's facility, are situated inland. Their test centre is in Gongyi, a city of 800,000 people in the central province of Henan.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/science/scientists-suggest-our-solar-system-was-shaped-like-donut-in-the-beginning-736475">Scientists suggest our Solar System was shaped like donut in the beginning</a>

<h2>Tianlong-3</h2>

Tianlong-3, which means "Sky Dragon 3," is a partly reusable two-stage rocket that is being developed by Space Pioneer. The company claims that the Tianlong-3 is comparable to SpaceX's Falcon 9, a two-stage rocket. Previously, in April 2023, Space Pioneer achieved a milestone by launching the Tianlong-2, a kerosene-oxygen rocket, making it the first private Chinese firm to send a liquid-propellant rocket into space.

(With inputs from agencies)

A rocket belonging to a private Chinese firm crashed into a hilly area in central China after malfunctioning and launching by itself on Sunday (June 30). Beijing Tianbing Technology Co, also known as Space Pioneer, in a statement on Sunday said that the first stage of its Tianlong-3 rocket experienced a structural failure during a test.

A rocket belonging to a private Chinese firm crashed into a hilly area in central China after malfunctioning and launching by itself on Sunday (June 30). Beijing Tianbing Technology Co, also known as Space Pioneer, in a statement on Sunday said that the first stage of its Tianlong-3 rocket experienced a structural failure during a test. This, the company said, caused it to detach from its launch pad and crash in a hilly area in Gongyi, central China. Space Pioneer explained that the first stage of the Tianlong-3 ignited as expected during a hot test, but then detached from the test bench because of structural failure, landing about 1.5 km (0.93 miles) away in hilly terrain. Also read | NASA backs plan to make homes with fungi on Moon and Mars Were there any casualties? As per Reuters, initial investigations revealed no casualties. However, the crash did cause a fire. In a statement on its official WeChat account, Space Pioneer detailed that parts of the rocket stage were scattered within a designated "safe area," but caused a local fire. The fire was extinguished, reported Gongyi emergency management bureau. It also confirmed that there were no injuries. While falling rocket debris in China is not uncommon, it is rare for a rocket under development to make an unintended flight and crash outside its test site. These sites are typically located along China's coast for safety reasons. However, some, like the Space Pioneer's facility, are situated inland. Their test centre is in Gongyi, a city of 800,000 people in the central province of Henan. Also read | Scientists suggest our Solar System was shaped like donut in the beginning Tianlong-3 Tianlong-3, which means "Sky Dragon 3," is a partly reusable two-stage rocket that is being developed by Space Pioneer. The company claims that the Tianlong-3 is comparable to SpaceX's Falcon 9, a two-stage rocket. Previously, in April 2023, Space Pioneer achieved a milestone by launching the Tianlong-2, a kerosene-oxygen rocket, making it the first private Chinese firm to send a liquid-propellant rocket into space. (With inputs from agencies)

Malfunctioning Chinese rocket Tianlong-3 launches itself, crashes in Gongyi hills

China has deployed its Shandong aircraft carrier near the Philippine coast as Manila asserts its claims in the South China Sea. Watch to know more.

South China Sea Tensions: Chinese aircraft carrier spotted near the Philippines

China-Philippines tensions: China patrols waters off the Philippines, sends message of deterrence

China is enforcing a new law on that allows national security authorities to inspect electronic devices on suspicion of espionage. Watch to know more.

China implements stricter espionage law for device check, enhances anti-espionage measures

Six tonnes of precursor chemicals from China were seized by Italian authorities, who found that it was meant for making the party drug ecstasy.

The drugs captured in powder form from Milan airport are worth $678 million or 630 million euros, Italian customs said on Monday (July 1).

Two Chinese nationals were arrested in the Netherlands, while a Milan-based businessman is being investigated. A joint probe was carried out by the European judicial agency Eurojust and Italian customs.

Also read |&nbsp;<a href="https://www.wionews.com/world/at-least-seven-dead-after-ferocious-storms-lash-france-switzerland-and-italy-736726">At least seven dead after ferocious storms lash France, Switzerland and Italy</a>

According to the customs agency, the chemicals seized could be used to make over 63 million MDMA pills, also known as ecstasy.

Lab tests showed that the powder, which was being carried as a polyester coating chemical, was in fact PMK, which is used for making ecstasy.

The haul happened after Italian authorities contacted Dutch police.

The seized goods included dozens of kilogrammes of PMK, ketamine and hashish, news agency AFP reported.

<h2>China and the drug trade</h2>

China's involvement in the global drug trade is well-known, mainly as a source of precursor material and as part of money laundering operations.

Amid its opioid crisis, the US had blamed China for the trafficking of fentanyl.

The US Drugs Drug Enforcement Administration (DEA) in 2020 said in a report that fentanyl and fentanyl-related substances were trafficked from China through both regular post and commercial courier services.

Also read |&nbsp;<a href="https://www.wionews.com/world/greece-fights-dozens-of-wildfires-in-most-difficult-day-of-year-736680">Greece fights dozens of wildfires in 'most difficult day of year'</a>

In June this year, US prosecutors charged 24 people for a money laundering scheme involving Chinese shadow bankers and Mexico’s Sinaloa drug cartel.

The Chinese underground money exchangers helped the Mexican drug lords launder money from trafficking worth $50 million in the 2019-2023 period, according to the prosecutors.

The revenues were from the trade of fentanyl, cocaine and meth, the US justice department said.

(With inputs from agencies)

Six tonnes of precursor chemicals from China were seized by Italian authorities, who found that it was meant for making the party drug ecstasy. The drugs captured in powder form from Milan airport are worth $678 million or 630 million euros, Italian customs said on Monday (July 1).

Six tonnes of precursor chemicals from China were seized by Italian authorities, who found that it was meant for making the party drug ecstasy. The drugs captured in powder form from Milan airport are worth $678 million or 630 million euros, Italian customs said on Monday (July 1). Two Chinese nationals were arrested in the Netherlands, while a Milan-based businessman is being investigated. A joint probe was carried out by the European judicial agency Eurojust and Italian customs. Also read | At least seven dead after ferocious storms lash France, Switzerland and Italy According to the customs agency, the chemicals seized could be used to make over 63 million MDMA pills, also known as ecstasy. Lab tests showed that the powder, which was being carried as a polyester coating chemical, was in fact PMK, which is used for making ecstasy. The haul happened after Italian authorities contacted Dutch police. The seized goods included dozens of kilogrammes of PMK, ketamine and hashish, news agency AFP reported. China and the drug trade China's involvement in the global drug trade is well-known, mainly as a source of precursor material and as part of money laundering operations. Amid its opioid crisis, the US had blamed China for the trafficking of fentanyl. The US Drugs Drug Enforcement Administration (DEA) in 2020 said in a report that fentanyl and fentanyl-related substances were trafficked from China through both regular post and commercial courier services. Also read | Greece fights dozens of wildfires in 'most difficult day of year' In June this year, US prosecutors charged 24 people for a money laundering scheme involving Chinese shadow bankers and Mexico’s Sinaloa drug cartel. The Chinese underground money exchangers helped the Mexican drug lords launder money from trafficking worth $50 million in the 2019-2023 period, according to the prosecutors. The revenues were from the trade of fentanyl, cocaine and meth, the US justice department said. (With inputs from agencies)

Major drug haul: Italy catches ecstasy chemical precursor from China worth $678mn 

The China-European Union trade war is moving beyond EV and Pork probes. In the latest, the European Commission is raising concerns over its chipmakers staring at substantial losses in China. This comes as China eyes supremacy in critical technologies and the semiconductor industry with investment hikes.

Major European chipmakers could face limitations, according to Bloomberg News. The companies are not that advanced; rather, they make microcontrollers and other chips essential for key sectors of the economy, including automobiles and consumer electronics.

A European report quoted by Bloomberg reveals that discriminatory standards and other non-tariff barriers could be used to bolster China's domestic market. Other measures involve investing heavily in components like analog and power semiconductors.

Bloomberg had earlier reported on the Chinese government instructing their domestic EV players to purchase components from local auto chipmakers. This aims to reduce reliance on Western imports and boost China's domestic semiconductor industry.

China is reportedly spending more than $100 billion to build new chip plants. The country has significantly hiked spending after US-imposed sanctions on Chinese company's ability to buy high-end chips. China, so far, has been able to access the US tech through backdoor channels.

Earlier Chinese President Xi Jinping urged Chinese industries to step up innovation amid confrontation with the US.

The China-European Union trade war is moving beyond EV and Pork probes. In the latest, the European Commission is raising concerns over its chipmakers staring at substantial losses in China.

The China-European Union trade war is moving beyond EV and Pork probes. In the latest, the European Commission is raising concerns over its chipmakers staring at substantial losses in China. This comes as China eyes supremacy in critical technologies and the semiconductor industry with investment hikes. Major European chipmakers could face limitations, according to Bloomberg News. The companies are not that advanced; rather, they make microcontrollers and other chips essential for key sectors of the economy, including automobiles and consumer electronics. A European report quoted by Bloomberg reveals that discriminatory standards and other non-tariff barriers could be used to bolster China's domestic market. Other measures involve investing heavily in components like analog and power semiconductors. Bloomberg had earlier reported on the Chinese government instructing their domestic EV players to purchase components from local auto chipmakers. This aims to reduce reliance on Western imports and boost China's domestic semiconductor industry. China is reportedly spending more than $100 billion to build new chip plants. The country has significantly hiked spending after US-imposed sanctions on Chinese company's ability to buy high-end chips. China, so far, has been able to access the US tech through backdoor channels. Earlier Chinese President Xi Jinping urged Chinese industries to step up innovation amid confrontation with the US.

European chipmakers fear losing market share in China

China continues its anti-corruption crackdown the latest to have fallen prey are two former Defence Ministers. The Chinese Communist Party has expelled Li Shangfu who was sacked last year along with his predecessor Wei Fenghe.

China continues its anti-corruption crackdown as CCP expels Li Shangfu and Wei Fenghe

Republican presidential nominee Donald Trump accused President and Democratic candidate Joe Biden of getting funded by China and called him a "Manchurian candidate" in his ruthless attack during a US presidential debate held on Thursday (June 27) at CNN's headquarters in Atlanta.

During the debate, Trump said, “We now have the largest deficit in the history of our country. We have the largest deficit with China. He gets paid by China. He’s a Manchurian candidate. He gets money from China."

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😂😂 <a href="https://t.co/198JRT5hnG">pic.twitter.com/198JRT5hnG</a>
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“China is going to own us if you keep allowing them to do what they’re doing to us as a country. They are killing us as a country, Joe, and you can’t let that happen. You’re destroying our country,” Trump said to Biden.

Also Read:&nbsp;<a href="https://www.wionews.com/world/watch-biden-freezes-forgets-lines-at-crucial-presidential-debate-appears-sick-with-raspy-voice-735857">Biden appears to freeze while Trump shows off cognitive capacity and&nbsp;golfing&nbsp;skills</a>

He called the military policies of Biden&nbsp;“insane", claiming that leaders like Russia’s Vladimir Putin, China’s Xi Jinping and North Korea’s Kim Jong Un do not fear or respect Biden. “They have nothing going with this gentleman and he’s going to drive us into World War III,” said Trump.

<h2>What does 'Manchurian candidate' mean?</h2>

The term "Manchurian candidate" is a reference to the character of an American soldier in Frank Sinatra's 1962 film, which had the same name.

The movie revolves around American soldier Raymond Shaw who was captured and brainwashed by communist forces after which he became a sleeper agent and committed a political assassination.

Frank Sinatra plays Shaw's commanding officer Major Bennett Marco who begins uncovering the sinister plot with the help of disturbing nightmares.&nbsp;

Watch:&nbsp;Biden vs Trump US Presidential Debate: Biden-Trump fiercely clash over Russia-Ukraine

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/biden-vs-trump-us-presidential-debate-biden-trump-fiercely-clash-over-russia-ukraine-735948/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

In 2004, the film was remade with Denzel Washington in the role of Major Bennett Marco.

In the presidential debate, the two presidential candidates clashed on different issues which included the economy, abortion, and immigration.&nbsp;

Eighty-one-year-old&nbsp;Biden started by criticising Trump's presidency but stumbled several times during the debate.

Trump, meanwhile, seized on Biden's phrasing as he blamed him for the Ukraine war. "If we had a leader, this is a war that never should have started," he said.

He further slammed Biden for giving "$200 billion or more to Ukraine", and claimed that it was a lot of money and that there was never "anything like it".

(With inputs from agencies)&nbsp;

Republican presidential nominee Donald Trump accused President and Democratic candidate Joe Biden of getting funded by China and called him a "Manchurian candidate" in his ruthless attack during a US presidential debate held on Thursday (June 27) at CNN's headquarters in Atlanta.

Republican presidential nominee Donald Trump accused President and Democratic candidate Joe Biden of getting funded by China and called him a "Manchurian candidate" in his ruthless attack during a US presidential debate held on Thursday (June 27) at CNN's headquarters in Atlanta. During the debate, Trump said, “We now have the largest deficit in the history of our country. We have the largest deficit with China. He gets paid by China. He’s a Manchurian candidate. He gets money from China." Trump: "He gets money from China. He's a Manchurian candidate." 😂😂 pic.twitter.com/198JRT5hnG — Greg Price (@greg_price11) June 28, 2024 × “China is going to own us if you keep allowing them to do what they’re doing to us as a country. They are killing us as a country, Joe, and you can’t let that happen. You’re destroying our country,” Trump said to Biden. Also Read: Biden appears to freeze while Trump shows off cognitive capacity and golfing skills He called the military policies of Biden “insane", claiming that leaders like Russia’s Vladimir Putin, China’s Xi Jinping and North Korea’s Kim Jong Un do not fear or respect Biden. “They have nothing going with this gentleman and he’s going to drive us into World War III,” said Trump. What does 'Manchurian candidate' mean? The term "Manchurian candidate" is a reference to the character of an American soldier in Frank Sinatra's 1962 film, which had the same name. The movie revolves around American soldier Raymond Shaw who was captured and brainwashed by communist forces after which he became a sleeper agent and committed a political assassination. Frank Sinatra plays Shaw's commanding officer Major Bennett Marco who begins uncovering the sinister plot with the help of disturbing nightmares. Watch: Biden vs Trump US Presidential Debate: Biden-Trump fiercely clash over Russia-Ukraine In 2004, the film was remade with Denzel Washington in the role of Major Bennett Marco. In the presidential debate, the two presidential candidates clashed on different issues which included the economy, abortion, and immigration. Eighty-one-year-old Biden started by criticising Trump's presidency but stumbled several times during the debate. Trump, meanwhile, seized on Biden's phrasing as he blamed him for the Ukraine war. "If we had a leader, this is a war that never should have started," he said. He further slammed Biden for giving "$200 billion or more to Ukraine", and claimed that it was a lot of money and that there was never "anything like it". (With inputs from agencies)

Trump makes fiery attack on Biden, calls him 'Manchurian candidate', 'paid by China'

Renowned investment tycoon Warren Buffett has recently accelerated the process of divesting his holdings in the Chinese electric vehicle manufacturer BYD. Buffett has executed two separate sales of his stake in the company within the span of a single month.

According to a disclosure filed with the Hong Kong stock exchange on Tuesday, Berkshire Hathaway, the investment conglomerate owned by Buffett, has reduced its ownership of BYD's H-shares to 5.99 per cent as of June 19. This marks a significant decrease from the 7.02 per cent stake that Berkshire held just over a week earlier on June 11.

The rapid series of divestments has resulted in a dramatic reduction of Buffett's overall position in the automotive company. In fact, his current holdings in the carmaker have diminished by more than 70 per cent compared to his initial investment.

It's worth noting that Hong Kong's regulatory framework mandates that major shareholders must publicly disclose any sales that cause their ownership stake to fall below whole percentage points. Given this requirement, it's possible that Berkshire may no longer be obligated to report its BYD sales once its ownership percentage dips below the 5 per cent threshold.

The origins of Berkshire's involvement with BYD date back to 2008 when the investment firm acquired a substantial 225 million shares in the company. This initial purchase granted Berkshire a 7.73 per cent stake in BYD, which translated to a 20.49 per cent ownership of the firm's H shares. At the time, Berkshire's investment amounted to USD 232 million.

Over the years, the value of Berkshire's BYD holdings experienced remarkable growth. By August 2022, when the investment firm first began to reduce its stake in the electric vehicle manufacturer, the value of its holdings had skyrocketed to approximately USD 7.5 billion.

During this period, BYD's share price had undergone an extraordinary increase, multiplying more than 20 times and reaching an all-time high. However, since Berkshire initiated its divestment strategy, BYD's stock price has experienced a decline of about 28 per cent.

It's important to note that the late Charlie Munger, who served as Berkshire's vice chairman, was the driving force behind the initial BYD investment. Buffett has consistently acknowledged Munger's role in spearheading this particular venture. This investment in BYD was somewhat unique for Berkshire, as the firm typically focuses its investments within the United States.

Buffett's decision to sell BYD shares comes at a time of escalating technological and trade tensions between the United States and China. In the previous year, the investment magnate expressed concerns about the state of bilateral relations between the two nations and hinted at his unease regarding investments that could be exposed to risks stemming from the deteriorating ties.

Despite Buffett's divestment, BYD - an acronym for "Build Your Dreams" - has continued to demonstrate strong performance. The company has consistently grown its profits and expanded its presence in various markets across Europe and Southeast Asia.

In a significant milestone, BYD surpassed Elon Musk's Tesla in the previous year to become the world's largest electric vehicle manufacturer. However, Tesla has since reclaimed the top position in the first quarter of the current year.

It's worth noting that BYD's shares listed on the Shenzhen stock exchange have shown impressive growth, rising by more than 21 per cent over the past month, indicating continued investor confidence in the company despite Buffett's reduced stake.&nbsp;

Renowned investment tycoon Warren Buffett has recently accelerated the process of divesting his holdings in the Chinese electric vehicle manufacturer BYD. Buffett has executed two separate sales of his stake in the company within the span of a single month.

Renowned investment tycoon Warren Buffett has recently accelerated the process of divesting his holdings in the Chinese electric vehicle manufacturer BYD. Buffett has executed two separate sales of his stake in the company within the span of a single month. According to a disclosure filed with the Hong Kong stock exchange on Tuesday, Berkshire Hathaway, the investment conglomerate owned by Buffett, has reduced its ownership of BYD's H-shares to 5.99 per cent as of June 19. This marks a significant decrease from the 7.02 per cent stake that Berkshire held just over a week earlier on June 11. The rapid series of divestments has resulted in a dramatic reduction of Buffett's overall position in the automotive company. In fact, his current holdings in the carmaker have diminished by more than 70 per cent compared to his initial investment. It's worth noting that Hong Kong's regulatory framework mandates that major shareholders must publicly disclose any sales that cause their ownership stake to fall below whole percentage points. Given this requirement, it's possible that Berkshire may no longer be obligated to report its BYD sales once its ownership percentage dips below the 5 per cent threshold. The origins of Berkshire's involvement with BYD date back to 2008 when the investment firm acquired a substantial 225 million shares in the company. This initial purchase granted Berkshire a 7.73 per cent stake in BYD, which translated to a 20.49 per cent ownership of the firm's H shares. At the time, Berkshire's investment amounted to USD 232 million. Over the years, the value of Berkshire's BYD holdings experienced remarkable growth. By August 2022, when the investment firm first began to reduce its stake in the electric vehicle manufacturer, the value of its holdings had skyrocketed to approximately USD 7.5 billion. During this period, BYD's share price had undergone an extraordinary increase, multiplying more than 20 times and reaching an all-time high. However, since Berkshire initiated its divestment strategy, BYD's stock price has experienced a decline of about 28 per cent. It's important to note that the late Charlie Munger, who served as Berkshire's vice chairman, was the driving force behind the initial BYD investment. Buffett has consistently acknowledged Munger's role in spearheading this particular venture. This investment in BYD was somewhat unique for Berkshire, as the firm typically focuses its investments within the United States. Buffett's decision to sell BYD shares comes at a time of escalating technological and trade tensions between the United States and China. In the previous year, the investment magnate expressed concerns about the state of bilateral relations between the two nations and hinted at his unease regarding investments that could be exposed to risks stemming from the deteriorating ties. Despite Buffett's divestment, BYD - an acronym for "Build Your Dreams" - has continued to demonstrate strong performance. The company has consistently grown its profits and expanded its presence in various markets across Europe and Southeast Asia. In a significant milestone, BYD surpassed Elon Musk's Tesla in the previous year to become the world's largest electric vehicle manufacturer. However, Tesla has since reclaimed the top position in the first quarter of the current year. It's worth noting that BYD's shares listed on the Shenzhen stock exchange have shown impressive growth, rising by more than 21 per cent over the past month, indicating continued investor confidence in the company despite Buffett's reduced stake.

Warren Buffett cuts stake in China’s BYD to less than 6 per cent

China's Communist Party on Thursday expelled former defence minister Li Shangfu and his predecessor Wei Fenghe for "serious violations of discipline", a euphemism for corruption, state news agency Xinhua reported.

Li was suspected of receiving "huge sums of money" in bribes as well as bribing others, and an investigation found he "did not fulfill political responsibilities" and "sought personnel benefits for himself and others", the report said, citing the Communist Party's Central Committee which ordered the investigation.

"As a senior leading cadre of the party and the army, Li Shangfu betrayed his original mission ... betrayed the trust of the Party Central Committee and Central Military Commission... and caused great damage to the party cause and national defence," the report said.

Reuters exclusively reported last year that Li was under investigation for suspected corruption in military procurement. He was mysteriously ousted as defence minister without explanation last October, after disappearing for two months. This is the first time China has explicitly confirmed that Li was under investigation, as well as details of the nature of his crimes.

China's military has undergone a sweeping anti-corruption purge since last year, with eleven PLA generals and a handful of aerospace defence industry executives removed from the national legislative body to date.

Wei Fenghe, Li's predecessor, had disappeared from public view since he was replaced last March during a planned cabinet reshuffle. Wei was head of the strategic People's Liberation Army (PLA) Rocket Force from 2015-17.

President Xi Jinping, also the military's commander-in-chief, appointed a new head and political commissar of the Rocket Force last July, in a major shake-up of the unit that oversees China's conventional and nuclear missiles.

An investigation launched into Wei last September found that he had accepted "a huge amount of money and valuables" in bribes and "helped others gain improper benefits in personnel arrangements", Xinhua reported, adding that his actions were "extremely serious in nature, with a highly detrimental impact and tremendous harm".

Both officials were also found to have other unspecified violations, the reports said without elaborating.

The decisions to strip Li and Wei of their party membership were approved by the seven-member Politburo, the Communist Party's apex of power, on Thursday. The Politburo also transferred both their cases to military prosecutors.

The decision will be confirmed during the party's Third Plenum to be held 15-18 July, when removals from the Central Committee will be formally announced. Ousted former foreign minister Qin Gang still remains a member of the Central Committee.

Xi last week said the PLA faces "deep-seated" political problems and vowed there must be "no hiding place" for corrupt officers.

Li was also stripped of his membership of the national legislative body, Xinhua added, after being removed from the Central Military Commission, China's top military body, earlier this year. Wei was also removed from the legislative body.

China's Communist Party on Thursday expelled former defence minister Li Shangfu and his predecessor Wei Fenghe for "serious violations of discipline", a euphemism for corruption, state news agency Xinhua reported.

China's Communist Party on Thursday expelled former defence minister Li Shangfu and his predecessor Wei Fenghe for "serious violations of discipline", a euphemism for corruption, state news agency Xinhua reported. Li was suspected of receiving "huge sums of money" in bribes as well as bribing others, and an investigation found he "did not fulfill political responsibilities" and "sought personnel benefits for himself and others", the report said, citing the Communist Party's Central Committee which ordered the investigation. "As a senior leading cadre of the party and the army, Li Shangfu betrayed his original mission ... betrayed the trust of the Party Central Committee and Central Military Commission... and caused great damage to the party cause and national defence," the report said. Reuters exclusively reported last year that Li was under investigation for suspected corruption in military procurement. He was mysteriously ousted as defence minister without explanation last October, after disappearing for two months. This is the first time China has explicitly confirmed that Li was under investigation, as well as details of the nature of his crimes. China's military has undergone a sweeping anti-corruption purge since last year, with eleven PLA generals and a handful of aerospace defence industry executives removed from the national legislative body to date. Wei Fenghe, Li's predecessor, had disappeared from public view since he was replaced last March during a planned cabinet reshuffle. Wei was head of the strategic People's Liberation Army (PLA) Rocket Force from 2015-17. President Xi Jinping, also the military's commander-in-chief, appointed a new head and political commissar of the Rocket Force last July, in a major shake-up of the unit that oversees China's conventional and nuclear missiles. An investigation launched into Wei last September found that he had accepted "a huge amount of money and valuables" in bribes and "helped others gain improper benefits in personnel arrangements", Xinhua reported, adding that his actions were "extremely serious in nature, with a highly detrimental impact and tremendous harm". Both officials were also found to have other unspecified violations, the reports said without elaborating. The decisions to strip Li and Wei of their party membership were approved by the seven-member Politburo, the Communist Party's apex of power, on Thursday. The Politburo also transferred both their cases to military prosecutors. The decision will be confirmed during the party's Third Plenum to be held 15-18 July, when removals from the Central Committee will be formally announced. Ousted former foreign minister Qin Gang still remains a member of the Central Committee. Xi last week said the PLA faces "deep-seated" political problems and vowed there must be "no hiding place" for corrupt officers. Li was also stripped of his membership of the national legislative body, Xinhua added, after being removed from the Central Military Commission, China's top military body, earlier this year. Wei was also removed from the legislative body.

China's Communist Party expels two former defence ministers for corruption

Headlines of the hour: - China intercepts U.S. Submarine Detectors - U.S. Congress seeks probe into Pak polls - Gallant presses Hamas to accept truce deal - Rising attacks: Germany cracks down on migrants - Kenya's Ruto withdraws controversial tax bill - Supporters flock to Canberra to welcome Assange

China intercepts US Submarine detectors | Kenya's Ruto withdraws finance bill

Headlines of the hour: - Anti-government protest continues in Israel - Kenya braces for fresh protests - Sunak most unpopular PM: polls - Hashemi pulls out of Iran elections - Sudan: 14 areas under threat of famine - U.S. regulator sanctions Boeing

Kenya braces for fresh protests | Hashemi pulls out of Iran elections

Saudi Defense Minister Prince Khalid bin Salman was received by his Chinese counterpart Dong Jun in Beijing on Tuesday. A reception was held for Prince Khalid who is on an official visit to the country.

Saudi defence minister meets Chinese counterpart in Beijing; ministers discuss strategic ties

China's stimulus has failed to ignite demand in the second-largest economy. In the latest discovery, China has now discovered that officials allowed cash raised from the central government's budget to be invested in subpar or halted projects.&nbsp;

Almost $3.9 billion of funds involving 522 projects were untapped or used for different purposes. This is according to a statement by the National Audit Office. Progress was slow in the 721 projects, leaving over 41 billion yuan unused. Some projects got funds even beyond the planned total investment. This misuse of funds means the government pays interest on bonds with no substantial investment returns. This increases the risks of future debt repayment, especially when major developers have recently defaulted on their debt obligations.

This comes as China struggles to revive the ailing property market. Major developers are facing a liquidation threat amid subdued domestic demand. China's stimulus aims to inject the economy with some cash to spur demand, but the misuse of funds revealed in the recent report casts a shadow on the revival prospects of China's real estate sector.

Another report revealed how China's stimulus measures could be more balanced. While cities like Shanghai are witnessing demand in the luxury property segment, &nbsp;with some apartments oversubscribed five times, most cities still face a bleak economic outlook. Chinese homeowners are also scrambling to pay the high mortgage costs.

This improper dispersal of funds can further dent China's economic growth prospects. Households and businesses seem reluctant to spend amid economic slowdown and geopolitical uncertainties.

China's stimulus has failed to ignite demand in the second-largest economy. In the latest discovery, China has now discovered that officials allowed cash raised from the central government's budget to be invested in subpar or halted projects.

China's stimulus has failed to ignite demand in the second-largest economy. In the latest discovery, China has now discovered that officials allowed cash raised from the central government's budget to be invested in subpar or halted projects. Almost $3.9 billion of funds involving 522 projects were untapped or used for different purposes. This is according to a statement by the National Audit Office. Progress was slow in the 721 projects, leaving over 41 billion yuan unused. Some projects got funds even beyond the planned total investment. This misuse of funds means the government pays interest on bonds with no substantial investment returns. This increases the risks of future debt repayment, especially when major developers have recently defaulted on their debt obligations. This comes as China struggles to revive the ailing property market. Major developers are facing a liquidation threat amid subdued domestic demand. China's stimulus aims to inject the economy with some cash to spur demand, but the misuse of funds revealed in the recent report casts a shadow on the revival prospects of China's real estate sector. Another report revealed how China's stimulus measures could be more balanced. While cities like Shanghai are witnessing demand in the luxury property segment, with some apartments oversubscribed five times, most cities still face a bleak economic outlook. Chinese homeowners are also scrambling to pay the high mortgage costs. This improper dispersal of funds can further dent China's economic growth prospects. Households and businesses seem reluctant to spend amid economic slowdown and geopolitical uncertainties.

China reveals misuse of funds, raising concerns over current fiscal measures

China is an undisputed space superpower. China wants to land its astronauts on the moon by 2030. However, China's space program threatens its own people and villages. Debris from Chinese rockets fall on villages in Southwest China, spreading toxic, cancer-causing chemicals in populated areas. Chinese space debris comprising large rocket parts have fallen in India, Indonesia, Malaysia, Ivory Coast.. China doesn't share information on where their rocket debris could end up falling.

Gravitas | The danger posed by Chinese space debris

Chinese premier Li Qiang has issued a stark warning against economic decoupling, stating that such 'regressive actions' could lead to a global 'destructive spiral.' Speaking at the World Economic Forum in Dalian, Li defended China's industrial policies amid criticism of overcapacity and the dumping of cheap goods. Watch in for more details!

China premier warns of global economic turmoil from decoupling

The People's Liberation army is the armed wing of the Chinese Communist party and the military of the People's Republic of China. One of the largest military forces in the world, The People's Liberation army is led by the Central Military Commission, its top decision-making body whose chairman serves as the Commander-in-chief. What happens when the supreme leader casts aspersions on an institution, calling it corrupt? The Chinese President Xi Jinping, who is also the chairman of the Central Military Commission, besides holding the post of general secretary of the Communist Party of China central committee, said that there were deep-seated problems in the Chinese military's politics, ideology, work style and discipline. The statement came at a military-political work conference initiated by Xi himself that was held in Yan'an of northwest China's Shaanxi province from 16th to 19th June. What prompted the Chinese president to underscore the significance of enhancing political loyalty in the military in the new era besides the ramifications of this chiding? Jyotsna Kumar brings you the details.

Chinese Prez Xi Jinping admonishes PLA's top brass

Take a look at all the news from the world of technology: Open AI to block access to tools for Chinese developers from July. Biden admin investigates Chinese firms in US for data security risks. India's telecom regulator issues new guidelines to tackle spam calls & messages. Watch in for more details!

India: Telecom regulator issues new guidelines to tackle spam calls & messages

The Philippine military accused the Chinese coast guard of ramming and then boarding the Filipino boats in a violent confrontation in the contested waters of the South China sea on 17th of June. The Philippines' top military commander, General Romeo Brawner, said that the Chinese coast guard were armed with swords, spears and knives in the incident off Second Thomas shoal. Denouncing the Chinese action as piracy, he demanded the return of seized weapons and other equipment, as well as reparations for damaged items. Beijing described the conduct of its personnel as professional and restrained, further adding that they were aiming to block an illegal transportation of supplies. Monday's incident is the latest in a series of escalating confrontations between Chinese and Philippine ships in recent months.

Chinese coast guard ambushes Filipino navy boats

The Biden administration is investigating China Mobile, China&nbsp;Telecom&nbsp;and China Unicom over concerns the firms could exploit access to American data through their U.S. cloud and internet businesses by providing it to Beijing, three sources familiar with the matter said.

Authorities at the Commerce Department are running the investigation, which has not been previously reported. They have subpoenaed the state-backed companies and have completed "risk-based analyses" of China Mobile and China&nbsp;Telecom, but are not as advanced in their probe of China Unicom, the people said, declining to be named because the probe is not public.&nbsp;

The companies still have a small presence in the United States, for example, providing cloud services and routing wholesale U.S. internet traffic. That gives them access to Americans' data even after&nbsp;telecom&nbsp;regulators barred them from providing telephone and retail internet services in the United States.

The Chinese companies and their U.S.-based lawyers did not respond to requests for comment. The Justice Department declined to comment and the White House referred questions to Commerce, which declined to comment. The Chinese Embassy in Washington said it hopes the United States will "stop suppressing Chinese companies under false pretexts," adding that China will continue to defend the rights and interests of Chinese companies.

Reuters found no evidence the companies intentionally provided sensitive U.S. data to the Chinese government or committed any other type of wrongdoing.

The investigation is the latest effort by Washington to prevent Beijing from exploiting Chinese firms' access to U.S. data to harm companies, Americans or national security, as part of a deepening tech war between the geopolitical rivals. It shows the administration is trying to shut down all remaining avenues for Chinese companies already targeted by Washington to obtain U.S. data.

Regulators have not yet made decisions about how to address the potential threat, two of the people said. But, equipped with the authority to probe internet services sold into the U.S. by companies from "foreign adversary" nations, regulators could block transactions allowing them to operate&nbsp;in data centers and route data for internet providers, the sources said.&nbsp;

Blocking key transactions, in turn, could degrade the Chinese firms' ability to offer competitive American-facing cloud and internet services to global customers, crippling their remaining U.S. businesses, experts and sources said.&nbsp;

"They are our chief global adversary and they are very sophisticated," said Doug Madory, an internet routing expert at internet analysis firm Kentik. "I think (U.S. regulators) would not feel like they were doing their job if they weren't trying to shore up every risk."

ROUTING THROUGH CHINA&nbsp;

China&nbsp;Telecom, China Mobile and China Unicom have long been in Washington's crosshairs. The FCC denied China Mobile's application to provide telephone service in 2019 and revoked China&nbsp;Telecom&nbsp;and China Unicom's licenses to do the same in 2021 and 2022 respectively. In April, the FCC went further and barred the companies from providing broadband service. A spokesman for the FCC said the agency stands by its concerns.&nbsp;

One factor in the FCC's decision was a 2020 report from other U.S. government agencies that recommended revoking China&nbsp;Telecom's license to provide U.S. telephone service.&nbsp;It cited at least nine instances where China&nbsp;Telecom&nbsp;misrouted internet traffic through China, putting it at risk of being intercepted, manipulated or blocked from reaching its intended destination.

"China&nbsp;Telecom's U.S. operations... provide Chinese government-sponsored actors with openings to disrupt and misroute U.S. data and communications traffic," authorities said at the time.

China&nbsp;Telecom&nbsp;has previously denied the government's allegations and told U.S. agencies that routing problems are common and occur on all networks.&nbsp;

The&nbsp;telecoms company sought to reverse the FCC decision, but a U.S. appeals court rejected its arguments, noting that the agencies presented "compelling evidence that the Chinese government may use Chinese information technology firms as vectors of espionage and sabotage."

The Commerce Department "must rigorously use its...authorities to protect U.S. data and infrastructure from Chinese companies like China&nbsp;Telecom," Republican congressman and chairman of the House Foreign Services Committee Michael McCaul said in a statement to Reuters. "As one of our top adversaries, China cannot and should not ever be trusted to have access to Americans’ private data,” he added.

China&nbsp;Telecom&nbsp;and its U.S. attorney did not immediately respond to requests for comment on his remarks.

ACCESS POINTS, CLOUD UNDER SCRUTINY

The Chinese&nbsp;telecoms companies' reach extends deep inside the U.S. internet infrastructure.

According to its website, China&nbsp;Telecom&nbsp;has 8 American Points of Presence (PoPs) that sit at internet exchange points, which allow large-scale networks to connect to each other and share routing information.

China&nbsp;Telecom&nbsp;did not respond to requests for comment about its U.S. based PoPs.

According to the FCC, there are "serious national security and law enforcement risks" posed by PoPs when operated by firms that pose a national security risk. In cases where China&nbsp;Telecom's PoPs reside in internet exchange points, the company "can potentially access and/or manipulate data where it is on the preferred path for U.S. customer traffic," the FCC said in April.

Bill Woodcock, executive director of Packet Clearing House, the intergovernmental treaty organization which is responsible for the&nbsp;security of critical Internet infrastructure, said traffic flowing through these points would be vulnerable to metadata analysis, which can capture key information about the data's origin, destination, size and timing of delivery. They also might allow for deep packet inspection, where parties can glimpse the data's contents, and even decryption.&nbsp;

Commerce investigators are also probing the companies' U.S. cloud offerings, the focus of the 2020 referral from the Justice Department on China Mobile, China&nbsp;Telecom&nbsp;and Alibaba that prompted the investigations, the people said. The probe was later expanded to include PoPs and China Unicom, whose cloud business was small at the time of the referral, two of people added. Alibaba did not respond to a request for comment.&nbsp;

Regulators fear that the companies could access personal information and intellectual property stored in their clouds and provide it to the Chinese government or disrupt Americans' access to it, two of the sources said.

Commerce department officials are particularly concerned about one data center that is part owned by China Mobile in California's Silicon Valley, according to one of the sources.&nbsp;

China Mobile did not respond to requests for comment about the data center.

Reuters could not determine the reason for the government's specific interest in China Mobile's data center, but ownership of one provides greater opportunity to mishandle client data, according to Bert Hubert, a Dutch cloud computing expert and former member of a board that regulates Dutch Intelligence and security agencies.

He noted that ownership would make it easier to meddle with clients' servers at night, for example, by installing backdoors to enable remote access or bypass encryption. Those actions would be much tougher in a data center with strict security policies where the company merely leases space. &nbsp;

"If you have your own data center you have your own unique piece of China within the U.S.," he said.

The Biden administration is investigating China Mobile, China Telecom and China Unicom over concerns the firms could exploit access to American data through their U.

The Biden administration is investigating China Mobile, China Telecom and China Unicom over concerns the firms could exploit access to American data through their U.S. cloud and internet businesses by providing it to Beijing, three sources familiar with the matter said. Authorities at the Commerce Department are running the investigation, which has not been previously reported. They have subpoenaed the state-backed companies and have completed "risk-based analyses" of China Mobile and China Telecom, but are not as advanced in their probe of China Unicom, the people said, declining to be named because the probe is not public. The companies still have a small presence in the United States, for example, providing cloud services and routing wholesale U.S. internet traffic. That gives them access to Americans' data even after telecom regulators barred them from providing telephone and retail internet services in the United States. The Chinese companies and their U.S.-based lawyers did not respond to requests for comment. The Justice Department declined to comment and the White House referred questions to Commerce, which declined to comment. The Chinese Embassy in Washington said it hopes the United States will "stop suppressing Chinese companies under false pretexts," adding that China will continue to defend the rights and interests of Chinese companies. Reuters found no evidence the companies intentionally provided sensitive U.S. data to the Chinese government or committed any other type of wrongdoing. The investigation is the latest effort by Washington to prevent Beijing from exploiting Chinese firms' access to U.S. data to harm companies, Americans or national security, as part of a deepening tech war between the geopolitical rivals. It shows the administration is trying to shut down all remaining avenues for Chinese companies already targeted by Washington to obtain U.S. data. Regulators have not yet made decisions about how to address the potential threat, two of the people said. But, equipped with the authority to probe internet services sold into the U.S. by companies from "foreign adversary" nations, regulators could block transactions allowing them to operate in data centers and route data for internet providers, the sources said. Blocking key transactions, in turn, could degrade the Chinese firms' ability to offer competitive American-facing cloud and internet services to global customers, crippling their remaining U.S. businesses, experts and sources said. "They are our chief global adversary and they are very sophisticated," said Doug Madory, an internet routing expert at internet analysis firm Kentik. "I think (U.S. regulators) would not feel like they were doing their job if they weren't trying to shore up every risk." ROUTING THROUGH CHINA China Telecom, China Mobile and China Unicom have long been in Washington's crosshairs. The FCC denied China Mobile's application to provide telephone service in 2019 and revoked China Telecom and China Unicom's licenses to do the same in 2021 and 2022 respectively. In April, the FCC went further and barred the companies from providing broadband service. A spokesman for the FCC said the agency stands by its concerns. One factor in the FCC's decision was a 2020 report from other U.S. government agencies that recommended revoking China Telecom's license to provide U.S. telephone service. It cited at least nine instances where China Telecom misrouted internet traffic through China, putting it at risk of being intercepted, manipulated or blocked from reaching its intended destination. "China Telecom's U.S. operations... provide Chinese government-sponsored actors with openings to disrupt and misroute U.S. data and communications traffic," authorities said at the time. China Telecom has previously denied the government's allegations and told U.S. agencies that routing problems are common and occur on all networks. The telecoms company sought to reverse the FCC decision, but a U.S. appeals court rejected its arguments, noting that the agencies presented "compelling evidence that the Chinese government may use Chinese information technology firms as vectors of espionage and sabotage." The Commerce Department "must rigorously use its...authorities to protect U.S. data and infrastructure from Chinese companies like China Telecom," Republican congressman and chairman of the House Foreign Services Committee Michael McCaul said in a statement to Reuters. "As one of our top adversaries, China cannot and should not ever be trusted to have access to Americans’ private data,” he added. China Telecom and its U.S. attorney did not immediately respond to requests for comment on his remarks. ACCESS POINTS, CLOUD UNDER SCRUTINY The Chinese telecoms companies' reach extends deep inside the U.S. internet infrastructure. According to its website, China Telecom has 8 American Points of Presence (PoPs) that sit at internet exchange points, which allow large-scale networks to connect to each other and share routing information. China Telecom did not respond to requests for comment about its U.S. based PoPs. According to the FCC, there are "serious national security and law enforcement risks" posed by PoPs when operated by firms that pose a national security risk. In cases where China Telecom's PoPs reside in internet exchange points, the company "can potentially access and/or manipulate data where it is on the preferred path for U.S. customer traffic," the FCC said in April. Bill Woodcock, executive director of Packet Clearing House, the intergovernmental treaty organization which is responsible for the security of critical Internet infrastructure, said traffic flowing through these points would be vulnerable to metadata analysis, which can capture key information about the data's origin, destination, size and timing of delivery. They also might allow for deep packet inspection, where parties can glimpse the data's contents, and even decryption. Commerce investigators are also probing the companies' U.S. cloud offerings, the focus of the 2020 referral from the Justice Department on China Mobile, China Telecom and Alibaba that prompted the investigations, the people said. The probe was later expanded to include PoPs and China Unicom, whose cloud business was small at the time of the referral, two of people added. Alibaba did not respond to a request for comment. Regulators fear that the companies could access personal information and intellectual property stored in their clouds and provide it to the Chinese government or disrupt Americans' access to it, two of the sources said. Commerce department officials are particularly concerned about one data center that is part owned by China Mobile in California's Silicon Valley, according to one of the sources. China Mobile did not respond to requests for comment about the data center. Reuters could not determine the reason for the government's specific interest in China Mobile's data center, but ownership of one provides greater opportunity to mishandle client data, according to Bert Hubert, a Dutch cloud computing expert and former member of a board that regulates Dutch Intelligence and security agencies. He noted that ownership would make it easier to meddle with clients' servers at night, for example, by installing backdoors to enable remote access or bypass encryption. Those actions would be much tougher in a data center with strict security policies where the company merely leases space. "If you have your own data center you have your own unique piece of China within the U.S.," he said.

US probing China Telecom, China Mobile over internet, cloud risks

A Chinese probe has returned to Earth carrying the first samples ever taken from the moon's far side. Chinese state television broadcast images Tuesday of the capsule holding the samples, as it floated down under a parachute onto the grassy steppe of Inner Mongolia.

China's CHANG'E- 6 returns to Earth after collecting moon samples

Tencent's new mobile game 'Dungeon & Fighter Mobile' has been a huge success in China. The game itself has generated more than $270 million on Apple IOS in its first month after the release. Now this game has generated more than double the sales from Tencent's previous game honor of kings. The long-standing best-seller game in China.

Tencent's 'Dungeon & Fighter Mobile' success

Xi Jinping on Monday held talks with Polish President Andrzej Duda, who is on a state visit to China. Xi Jinping held a welcome ceremony for the Polish president outside the Great Hall of the People at the edge of Tiananmen Square in Beijing. Watch in for more details!

Polish President Andrzej Duda holds talks with Chinese President

Canada is contemplating imposing tariffs on electric vehicles (EVs) manufactured in China, aligning itself with international allies concerned about a heavily subsidised Chinese industry. This move comes amid rising global tensions over trade practices and competitive fairness in the EV sector.

Finance Minister Chrystia Freeland announced the potential tariffs, citing unfair competition due to China's "state-directed policy of overcapacity." Speaking in Vaughan, Ontario, Freeland said that Chinese producers are creating a global oversupply of EVs, undermining manufacturers worldwide, including in Canada.

"Chinese producers are intentionally generating a global oversupply that undermines EV producers around the world, including here in Canada," Freeland stated, echoing sentiments previously voiced by the United States and the European Union.

Public consultation period

To address these concerns, Ottawa will initiate a 30-day public consultation period starting July 2. This period will allow stakeholders to provide input on potential responses, including tariffs on EV imports from China. Freeland hinted at possible tariffs on EV components, such as batteries, but did not detail specific measures.

"We're not ruling anything out," Freeland emphasised. "We are bringing to bear our strongest trade action tools."

Also read:&nbsp;<a href="https://www.wionews.com/autonews/us-court-dismisses-racial-discrimination-case-against-uber-734840">U.S. court dismisses racial discrimination case against Uber</a>

International context

The consideration of tariffs follows similar actions by international partners. Last month, U.S. President Joe Biden announced significant tariff increases on Chinese imports, including EVs. The European Commission has also planned additional duties of up to 38.1% on Chinese manufacturers such as BYD, Geely, and SAIC, as well as Chinese-built Tesla and BMW cars.

China, however, has dismissed accusations of unfair subsidies and overcapacity. Chinese officials argue that their EV industry's growth is driven by technological, market, and supply chain advantages.

Chinese response

Ahead of Freeland's announcement, an opinion piece in the Chinese state-backed Global Times urged Canada to remain "strategically rational" and not "sacrifice normal economic exchanges with China for the sake of Washington's strategic selfishness." This statement reflects China's stance on maintaining robust trade relations despite rising tensions.

Economic impact

China is Canada's second-largest trading partner, following the United States. In 2023, data from Canada's largest port in Vancouver showed a 460% annual increase in automobile imports from China, driven by shipments of Shanghai-made Tesla EVs to Canada.

Domestic pressures

Domestically, there is significant pressure on the Canadian government to act. Ontario Premier Doug Ford recently called for tariffs of at least 100% on Chinese EVs. Ontario, as Canada's most populous province and primary auto-making hub, has a vested interest in protecting its automotive industry.

Canada has made substantial investments to position itself as a critical player in the global EV supply chain. These efforts include multi-billion dollar deals to attract companies across the EV supply chain, aiming to bolster the manufacturing heartland.

Industry reactions

Industry leaders and bodies have largely welcomed the potential tariffs. Hugues Jacquemin, CEO of Northern Graphite, suggested that any action should also encompass critical minerals essential for battery production. The main opposition Conservative party has criticised Prime Minister Justin Trudeau for not adequately protecting the auto industry, urging Ottawa to prevent the dumping of cheap Chinese products.

The Global Automakers of Canada and the Canadian Vehicle Manufacturers' Association have expressed support for the government's stance, recognising the need to address competitive imbalances in the EV market.

As Canada navigates its position within the global EV market, the potential imposition of tariffs on Chinese electric vehicles reflects broader concerns about fair competition and industry sustainability. The outcome of the public consultation period will be crucial in determining Canada's next steps in this evolving economic landscape.

(Inputs from Reuters)

Canada is contemplating imposing tariffs on electric vehicles (EVs) manufactured in China, aligning itself with international allies concerned about a heavily subsidised Chinese industry.

Canada is contemplating imposing tariffs on electric vehicles (EVs) manufactured in China, aligning itself with international allies concerned about a heavily subsidised Chinese industry. This move comes amid rising global tensions over trade practices and competitive fairness in the EV sector. Finance Minister Chrystia Freeland announced the potential tariffs, citing unfair competition due to China's "state-directed policy of overcapacity." Speaking in Vaughan, Ontario, Freeland said that Chinese producers are creating a global oversupply of EVs, undermining manufacturers worldwide, including in Canada. "Chinese producers are intentionally generating a global oversupply that undermines EV producers around the world, including here in Canada," Freeland stated, echoing sentiments previously voiced by the United States and the European Union. Public consultation period To address these concerns, Ottawa will initiate a 30-day public consultation period starting July 2. This period will allow stakeholders to provide input on potential responses, including tariffs on EV imports from China. Freeland hinted at possible tariffs on EV components, such as batteries, but did not detail specific measures. "We're not ruling anything out," Freeland emphasised. "We are bringing to bear our strongest trade action tools." Also read: U.S. court dismisses racial discrimination case against Uber International context The consideration of tariffs follows similar actions by international partners. Last month, U.S. President Joe Biden announced significant tariff increases on Chinese imports, including EVs. The European Commission has also planned additional duties of up to 38.1% on Chinese manufacturers such as BYD, Geely, and SAIC, as well as Chinese-built Tesla and BMW cars. China, however, has dismissed accusations of unfair subsidies and overcapacity. Chinese officials argue that their EV industry's growth is driven by technological, market, and supply chain advantages. Chinese response Ahead of Freeland's announcement, an opinion piece in the Chinese state-backed Global Times urged Canada to remain "strategically rational" and not "sacrifice normal economic exchanges with China for the sake of Washington's strategic selfishness." This statement reflects China's stance on maintaining robust trade relations despite rising tensions. Economic impact China is Canada's second-largest trading partner, following the United States. In 2023, data from Canada's largest port in Vancouver showed a 460% annual increase in automobile imports from China, driven by shipments of Shanghai-made Tesla EVs to Canada. Domestic pressures Domestically, there is significant pressure on the Canadian government to act. Ontario Premier Doug Ford recently called for tariffs of at least 100% on Chinese EVs. Ontario, as Canada's most populous province and primary auto-making hub, has a vested interest in protecting its automotive industry. Canada has made substantial investments to position itself as a critical player in the global EV supply chain. These efforts include multi-billion dollar deals to attract companies across the EV supply chain, aiming to bolster the manufacturing heartland. Industry reactions Industry leaders and bodies have largely welcomed the potential tariffs. Hugues Jacquemin, CEO of Northern Graphite, suggested that any action should also encompass critical minerals essential for battery production. The main opposition Conservative party has criticised Prime Minister Justin Trudeau for not adequately protecting the auto industry, urging Ottawa to prevent the dumping of cheap Chinese products. The Global Automakers of Canada and the Canadian Vehicle Manufacturers' Association have expressed support for the government's stance, recognising the need to address competitive imbalances in the EV market. As Canada navigates its position within the global EV market, the potential imposition of tariffs on Chinese electric vehicles reflects broader concerns about fair competition and industry sustainability. The outcome of the public consultation period will be crucial in determining Canada's next steps in this evolving economic landscape. (Inputs from Reuters)

Canada considers tariffs on Chinese EVs amid global concerns

A suspected Chinese state-sponsored hacking group has stepped up its targeting of Taiwanese organizations, according to cybersecurity intelligence company Recorded Future. Watch in for more updates!

Chinese hackers have increased cyberattacks on Taiwan: Report

China-Poland meet: Leader of NATO nation Poland visits China

China's Xi meets with Polish President Duda in Beijing

United States' scrutiny of China continues to intensify. According to Reuters, the US is investigating China Mobile, China Telecom, and China Unicom for potential espionage.&nbsp;

Reuters suggests that this probe is happening on the sidelines without official confirmation. The US has recently strengthened oversight of China, with multiple tariffs imposed on specific Chinese goods. While AI has been at the forefront of US scrutiny of China, similar tariffs are underway. The companies are accused of exploiting access to American data and sharing it with Beijing.&nbsp;

The three companies have long been in the US crosshairs. Regulatory authorities denied China Mobile's application to provide telephone service in 2019, and similarly, for the other two companies in 2021 &amp; 2022, respectively. The companies were later barred from providing broadband service. According to the regulators, 'serious national security and law enforcement risks' are involved. Investigators are also probing the companies' cloud offerings.

The government agencies cited nine instances where China Telecom misrouted China Telecom misrouted internet traffic through China. This leaves the US vulnerable to risks of being intercepted &amp; manipulated. China Telecom has denied the government's allegations, stating that routing problems are not intentional.

The Chinese embassy in Washington has voiced concerns over the US' growing scrutiny. <a href="https://www.wionews.com/business-economy/chinese-premier-counters-overcapacity-claims-says-we-enrich-global-supply-734889">Chinese Premier Li Qiang</a> hit back at the US and the European Union on claims that Chinese firms benefit from unfair subsidies and 'flood' global markets with cheap goods. These comments came during his address at a World Economic Forum meeting in Dalian.

'China's production of advanced electric vehicles, lithium-ion batteries and photovoltaic products, first met out domestic demand, but also enrich global supply', he said in his opening remarks. 'The rapid rise of China's new industries is rooted in our own unique comparative advantages', he added.

United States' scrutiny of China continues to intensify. According to Reuters, the US is investigating China Mobile, China Telecom, and China Unicom for potential espionage.

United States' scrutiny of China continues to intensify. According to Reuters, the US is investigating China Mobile, China Telecom, and China Unicom for potential espionage. Reuters suggests that this probe is happening on the sidelines without official confirmation. The US has recently strengthened oversight of China, with multiple tariffs imposed on specific Chinese goods. While AI has been at the forefront of US scrutiny of China, similar tariffs are underway. The companies are accused of exploiting access to American data and sharing it with Beijing. The three companies have long been in the US crosshairs. Regulatory authorities denied China Mobile's application to provide telephone service in 2019, and similarly, for the other two companies in 2021 & 2022, respectively. The companies were later barred from providing broadband service. According to the regulators, 'serious national security and law enforcement risks' are involved. Investigators are also probing the companies' cloud offerings. The government agencies cited nine instances where China Telecom misrouted China Telecom misrouted internet traffic through China. This leaves the US vulnerable to risks of being intercepted & manipulated. China Telecom has denied the government's allegations, stating that routing problems are not intentional. The Chinese embassy in Washington has voiced concerns over the US' growing scrutiny. Chinese Premier Li Qiang hit back at the US and the European Union on claims that Chinese firms benefit from unfair subsidies and 'flood' global markets with cheap goods. These comments came during his address at a World Economic Forum meeting in Dalian. 'China's production of advanced electric vehicles, lithium-ion batteries and photovoltaic products, first met out domestic demand, but also enrich global supply', he said in his opening remarks. 'The rapid rise of China's new industries is rooted in our own unique comparative advantages', he added.

US probes China's telecom 'espionage': 3 companies under scrutiny

Chinese retailers are bracing for a tough near-term future following a dull performance during the mid-year online shopping festival, which has cast a shadow over the recovery projections of China’s economy.

For the first time, e-commerce sales declined during the 618 festival, reflecting growing pressures on retailers amid a fierce price war.

The 618 festival, named after the founding date of e-commerce giant JD.com, has evolved into China’s second-largest annual sales event, only surpassed by Singles Day in November.

Both events have highlighted the strong growth of Chinese consumerism, providing a boost in sales for platforms and brands.

However, this year’s 618 festival showed the challenges of getting consumers to spend, as Alicia Garcia-Herrero, Asia Pacific chief economist at Natixis, stated, "If they're not spending during this (618 sale), when on earth are they going to consume?".

The pandemic has led to year-round discounts from retailers aiming to attract cautious consumers, which has diluted the impact of major shopping festivals. Last year, Singles Day sales grew by just 2 per cent.

Although discounting has slowed the migration of consumers from platforms like JD.com and Alibaba's Tmall and Taobao to low-cost competitors such as Pinduoduo, it has not boosted consumer spending.

Alibaba's domestic e-commerce revenue grew by only 4 per cent in recent quarterly results, while its shares are down about 5 per cent this year, and JD.com shares have fallen over 3 per cent.

The greater concern is the constantly weak consumer sentiment since 2022. 
A Bank of America survey in June indicated further weakening, with only 45 per cent of respondents planning to increase spending in the next six months, down from 55 per cent in April.

Moreover, only 31 per cent expect an income increase over the same period, a 10-point drop from April.

Josh Gardner, CEO of Kung Fu Data, which manages online stores for numerous global brands, explained that Chinese e-commerce is often called "Everest commerce" due to its sales peaks during events like 618 and Singles Day. 
He noted that these peaks might become less pronounced as consumers gravitate towards everyday discounts, such as those available through livestream shopping on platforms like Douyin. Gardner observed, "What we're seeing this year is a shift away from full-price retail altogether. It's more rational consumption and caution and looking for value".

Chinese consumers' reluctance to spend, driven by concerns over personal wealth amid a real estate slump, slow wage growth, and high youth unemployment, threatens China's economic growth target of "around 5 per cent" this year. 
Festivals like 618, instead of boosting consumption, might hinder recovery by encouraging frugality. Kang Li, a 45-year-old sales worker in Changsha, exemplifies this trend. She focused her 618 purchases on essentials and planned not to buy more until Singles Day.

Jason Yu, Greater China Managing Director at Kantar Worldpanel, warned that retailers face a challenging period ahead as consumers stockpiled essentials during 618, leading to what he termed an "overdraft of future consumption potential." He forecasts that July will be particularly tough for retailers. 
Garcia-Herrero of Natixis forecast that retail sales in the second half of the year would grow only in low single digits, reducing consumption’s contribution to China’s GDP. "This is terrible news for rebalancing the global economy because China will continue to have to export its way out of trouble," she said.

(With inputs from Reuters)

Chinese retailers are bracing for a tough near-term future following a dull performance during the mid-year online shopping festival, which has cast a shadow over the recovery projections of China’s economy.

Chinese retailers are bracing for a tough near-term future following a dull performance during the mid-year online shopping festival, which has cast a shadow over the recovery projections of China’s economy. For the first time, e-commerce sales declined during the 618 festival, reflecting growing pressures on retailers amid a fierce price war. The 618 festival, named after the founding date of e-commerce giant JD.com, has evolved into China’s second-largest annual sales event, only surpassed by Singles Day in November. Both events have highlighted the strong growth of Chinese consumerism, providing a boost in sales for platforms and brands. However, this year’s 618 festival showed the challenges of getting consumers to spend, as Alicia Garcia-Herrero, Asia Pacific chief economist at Natixis, stated, "If they're not spending during this (618 sale), when on earth are they going to consume?". The pandemic has led to year-round discounts from retailers aiming to attract cautious consumers, which has diluted the impact of major shopping festivals. Last year, Singles Day sales grew by just 2 per cent. Although discounting has slowed the migration of consumers from platforms like JD.com and Alibaba's Tmall and Taobao to low-cost competitors such as Pinduoduo, it has not boosted consumer spending. Alibaba's domestic e-commerce revenue grew by only 4 per cent in recent quarterly results, while its shares are down about 5 per cent this year, and JD.com shares have fallen over 3 per cent. The greater concern is the constantly weak consumer sentiment since 2022. A Bank of America survey in June indicated further weakening, with only 45 per cent of respondents planning to increase spending in the next six months, down from 55 per cent in April. Moreover, only 31 per cent expect an income increase over the same period, a 10-point drop from April. Josh Gardner, CEO of Kung Fu Data, which manages online stores for numerous global brands, explained that Chinese e-commerce is often called "Everest commerce" due to its sales peaks during events like 618 and Singles Day. He noted that these peaks might become less pronounced as consumers gravitate towards everyday discounts, such as those available through livestream shopping on platforms like Douyin. Gardner observed, "What we're seeing this year is a shift away from full-price retail altogether. It's more rational consumption and caution and looking for value". Chinese consumers' reluctance to spend, driven by concerns over personal wealth amid a real estate slump, slow wage growth, and high youth unemployment, threatens China's economic growth target of "around 5 per cent" this year. Festivals like 618, instead of boosting consumption, might hinder recovery by encouraging frugality. Kang Li, a 45-year-old sales worker in Changsha, exemplifies this trend. She focused her 618 purchases on essentials and planned not to buy more until Singles Day. Jason Yu, Greater China Managing Director at Kantar Worldpanel, warned that retailers face a challenging period ahead as consumers stockpiled essentials during 618, leading to what he termed an "overdraft of future consumption potential." He forecasts that July will be particularly tough for retailers. Garcia-Herrero of Natixis forecast that retail sales in the second half of the year would grow only in low single digits, reducing consumption’s contribution to China’s GDP. "This is terrible news for rebalancing the global economy because China will continue to have to export its way out of trouble," she said. (With inputs from Reuters)

China’s retailers face grim outlook post disappointing 618 shopping festival

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