Taiwan has taken its most aggressive step yet in the ongoing tech war between China and the United States.&nbsp;&nbsp;For the first time, the island has added Huawei Technologies and leading Chinese chipmaker SMIC (Semiconductor Manufacturing International Corporation) to its export control list, a move that could reshape cross-strait tech ties and tighten the noose on Beijing’s semiconductor ambitions.&nbsp;The decision bars Taiwanese firms from doing business with the two Chinese giants without a government license. It’s a dramatic shift for a tech powerhouse that, until now, avoided taking sides too visibly.&nbsp;“This marks a substantive move toward strategic technological competition with China,” said Chiang Min-yen, a researcher at Taiwan’s state-backed RIDEET think tank, as quoted by Bloomberg.<h2>Why this matters</h2>Taiwan’s action comes after years of quiet US pressure. Both the Trump and Biden administrations had urged Taipei to enforce stricter export curbs, especially as Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s most advanced chipmaker, remains deeply embedded in global supply chains.&nbsp;According to Bloomberg News, US officials have pushed Taiwan to prevent companies from supplying even trace amounts of American-linked technology to Chinese entities under sanctions.&nbsp;In 2023, TSMC was found to have unknowingly manufactured millions of AI chips for Huawei, routed through a third party later blacklisted by Washington. While TSMC has since cut ties, Taiwan had largely avoided direct blacklisting until now.<h2>Taking a page from Washington</h2>Taiwan’s Ministry of Economic Affairs cited national security concerns for the new blacklisting, echoing similar language used by the US Department of Commerce.&nbsp;“We welcome Taiwan’s move,” said a US congressional panel on China policy, quoted by Reuters. “Partners must act to stop the CCP’s illegal tech transfer network.”&nbsp;Taiwan’s Entity List now includes 601 companies, including dozens tied to China’s military-industrial complex and surveillance tech firms. But Huawei and SMIC are the most prominent by far.&nbsp;“This is not about short-term sales; it’s a long-term alignment,” said a senior trade official in Taipei, speaking anonymously to Bloomberg.<h2>What happens now?</h2>On paper, the blacklist may not immediately block all business. Many Taiwanese companies operate subsidiaries in mainland China, which may technically fall outside the island’s jurisdiction.&nbsp;“The move is symbolic but not disruptive— yet,” said Steven Tseng, chip analyst at Bloomberg Intelligence. “Huawei and SMIC have already localised much of their sourcing.”&nbsp;But it sends a clear political signal. New President Lai Ching-te has pledged to reduce Taiwan’s reliance on the mainland and strengthen ties with democracies like the US and Japan.&nbsp;According to Bloomberg, Lai’s administration is now expected to tighten scrutiny on component sales, construction contracts, and even IP transfers to Chinese tech parks.<h2>Cross-strait tensions on edge</h2>The timing is no coincidence. Beijing has sharply criticised Lai, accusing him of promoting “independence in disguise” and branding his administration a “troublemaker” after he referred to China as a “foreign hostile force”.&nbsp;“Lai will now be able to speed up his agenda-setting against China on several fronts, including defence, trade, and tech,” said Soong Hseik-wen, policy researcher at National Chung Cheng University, speaking to Bloomberg.&nbsp;Taiwan’s investment in China has already plunged from $14.6 billion in 2010 to just $3.6 billion in 2024, according to official statistics. The blacklist may be the next phase of that economic decoupling.<h2>The bigger picture</h2>Taiwan’s move comes as a growing number of US allies, from Japan to the Netherlands, restrict semiconductor exports to China. Yet neither Tokyo nor Seoul has directly blacklisted Huawei or SMIC. That makes Taipei’s decision even more significant.&nbsp;For China, the implications are deep. While Huawei and SMIC have spent years building a domestic supply chain, losing access to Taiwan’s precision tools, silicon wafers, and expertise could further delay their AI and chip ambitions.&nbsp;Taiwan has made its choice. As the global semiconductor war enters a new phase, the island is tightening its grip on critical tech and turning away from decades of cross-Strait economic interdependence.&nbsp;Whether symbolic or strategic, the blacklist sends a message Beijing can’t ignore: Taiwan is not just in front of geopolitics; it’s now in the frontline of the tech war.&nbsp;(With inputs from the agencies) &nbsp;

This marks a significant shift in Taiwan approach, encouraged by US pressure for stricter export controls to protect its advanced semiconductor industry. 

Taiwan has taken its most aggressive step yet in the ongoing tech war between China and the United States. For the first time, the island has added Huawei Technologies and leading Chinese chipmaker SMIC (Semiconductor Manufacturing International Corporation) to its export control list, a move that could reshape cross-strait tech ties and tighten the noose on Beijing’s semiconductor ambitions. The decision bars Taiwanese firms from doing business with the two Chinese giants without a government license. It’s a dramatic shift for a tech powerhouse that, until now, avoided taking sides too visibly. “This marks a substantive move toward strategic technological competition with China,” said Chiang Min-yen, a researcher at Taiwan’s state-backed RIDEET think tank, as quoted by Bloomberg. Why this matters Taiwan’s action comes after years of quiet US pressure. Both the Trump and Biden administrations had urged Taipei to enforce stricter export curbs, especially as Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s most advanced chipmaker, remains deeply embedded in global supply chains. According to Bloomberg News, US officials have pushed Taiwan to prevent companies from supplying even trace amounts of American-linked technology to Chinese entities under sanctions. In 2023, TSMC was found to have unknowingly manufactured millions of AI chips for Huawei, routed through a third party later blacklisted by Washington. While TSMC has since cut ties, Taiwan had largely avoided direct blacklisting until now. Taking a page from Washington Taiwan’s Ministry of Economic Affairs cited national security concerns for the new blacklisting, echoing similar language used by the US Department of Commerce. “We welcome Taiwan’s move,” said a US congressional panel on China policy, quoted by Reuters. “Partners must act to stop the CCP’s illegal tech transfer network.” Taiwan’s Entity List now includes 601 companies, including dozens tied to China’s military-industrial complex and surveillance tech firms. But Huawei and SMIC are the most prominent by far. “This is not about short-term sales; it’s a long-term alignment,” said a senior trade official in Taipei, speaking anonymously to Bloomberg. What happens now? On paper, the blacklist may not immediately block all business. Many Taiwanese companies operate subsidiaries in mainland China, which may technically fall outside the island’s jurisdiction. “The move is symbolic but not disruptive— yet,” said Steven Tseng, chip analyst at Bloomberg Intelligence. “Huawei and SMIC have already localised much of their sourcing.” But it sends a clear political signal. New President Lai Ching-te has pledged to reduce Taiwan’s reliance on the mainland and strengthen ties with democracies like the US and Japan. According to Bloomberg, Lai’s administration is now expected to tighten scrutiny on component sales, construction contracts, and even IP transfers to Chinese tech parks. Cross-strait tensions on edge The timing is no coincidence. Beijing has sharply criticised Lai, accusing him of promoting “independence in disguise” and branding his administration a “troublemaker” after he referred to China as a “foreign hostile force”. “Lai will now be able to speed up his agenda-setting against China on several fronts, including defence, trade, and tech,” said Soong Hseik-wen, policy researcher at National Chung Cheng University, speaking to Bloomberg. Taiwan’s investment in China has already plunged from $14.6 billion in 2010 to just $3.6 billion in 2024, according to official statistics. The blacklist may be the next phase of that economic decoupling. The bigger picture Taiwan’s move comes as a growing number of US allies, from Japan to the Netherlands, restrict semiconductor exports to China. Yet neither Tokyo nor Seoul has directly blacklisted Huawei or SMIC. That makes Taipei’s decision even more significant. For China, the implications are deep. While Huawei and SMIC have spent years building a domestic supply chain, losing access to Taiwan’s precision tools, silicon wafers, and expertise could further delay their AI and chip ambitions. Taiwan has made its choice. As the global semiconductor war enters a new phase, the island is tightening its grip on critical tech and turning away from decades of cross-Strait economic interdependence. Whether symbolic or strategic, the blacklist sends a message Beijing can’t ignore: Taiwan is not just in front of geopolitics; it’s now in the frontline of the tech war. (With inputs from the agencies)

Taiwan has escalated its tech stance against China and the US by blacklisting Huawei Technologies and SMIC, requiring government licenses for Taiwanese firms doing business with them.

US–China chip tensions rise as Taiwan blacklists Huawei: Details here

US President Donald Trump will this week give TikTok a fresh 90-day extension to find a non-Chinese buyer, the White House said Tuesday, the third time he has put off a threatened ban on the popular app.&nbsp;A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's January inauguration.&nbsp;"President Trump will sign an additional Executive Order this week to keep TikTok up and running. As he has said many times, President Trump does not want TikTok to go dark," Press Secretary Karoline Leavitt said in a statement.&nbsp;"This extension will last 90 days, which the administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure."&nbsp;Trump, whose 2024 election campaign relied heavily on social media, has previously said he is fond of the video sharing app.&nbsp;"I have a little warm spot in my heart for TikTok," Trump said in an NBC News interview in early May. "If it needs an extension, I would be willing to give it an extension."&nbsp;<h2>Digital Cold War?</h2> Trump said at the time that a group of purchasers was ready to pay TikTok owner ByteDance "a lot of money" for the video-clip-sharing sensation's US operations.&nbsp;Trump has repeatedly downplayed risks that TikTok is in danger, saying he remains confident of finding a buyer for the app's US business.&nbsp;The president is "just not motivated to do anything about TikTok," said independent analyst Rob Enderle. "Unless they get on his bad side, TikTok is probably going to be in pretty good shape."&nbsp;Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform after coming to believe it helped him win young voters' support in the November election.&nbsp;Motivated by national security fears and belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump's inauguration, with ByteDance having made no attempt to find a suitor.&nbsp;TikTok "has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control," said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain.&nbsp;The Republican president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to June 19.&nbsp;<h2>Tariff turmoil</h2> Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over his tariffs on Beijing.ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be "subject to approval under Chinese law".&nbsp;Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company.&nbsp;Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance's share in the new TikTok.&nbsp;Much of TikTok's US activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally.Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm.&nbsp;"TikTok without its algorithm is like Harry Potter without his wand -- it's simply not as powerful," said Forrester Principal Analyst Kelsey Chickering.&nbsp;Meanwhile, it appears TikTok is continuing with business as usual.TikTok on Monday introduced a new "Symphony" suite of generative artificial intelligence tools for advertisers to turn words or photos into video snippets for the platform.

A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's January inauguration.

US President Donald Trump will this week give TikTok a fresh 90-day extension to find a non-Chinese buyer, the White House said Tuesday, the third time he has put off a threatened ban on the popular app. A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's January inauguration. "President Trump will sign an additional Executive Order this week to keep TikTok up and running. As he has said many times, President Trump does not want TikTok to go dark," Press Secretary Karoline Leavitt said in a statement. "This extension will last 90 days, which the administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure." Trump, whose 2024 election campaign relied heavily on social media, has previously said he is fond of the video sharing app. "I have a little warm spot in my heart for TikTok," Trump said in an NBC News interview in early May. "If it needs an extension, I would be willing to give it an extension." Digital Cold War? Trump said at the time that a group of purchasers was ready to pay TikTok owner ByteDance "a lot of money" for the video-clip-sharing sensation's US operations. Trump has repeatedly downplayed risks that TikTok is in danger, saying he remains confident of finding a buyer for the app's US business. The president is "just not motivated to do anything about TikTok," said independent analyst Rob Enderle. "Unless they get on his bad side, TikTok is probably going to be in pretty good shape." Trump had long supported a ban or divestment, but reversed his position and vowed to defend the platform after coming to believe it helped him win young voters' support in the November election. Motivated by national security fears and belief in Washington that TikTok is controlled by the Chinese government, the ban took effect on January 19, one day before Trump's inauguration, with ByteDance having made no attempt to find a suitor. TikTok "has become a symbol of the US-China tech rivalry; a flashpoint in the new Cold War for digital control," said Shweta Singh, an assistant professor of information systems at Warwick Business School in Britain. The Republican president announced an initial 75-day delay of the ban upon taking office. A second extension pushed the deadline to June 19. Tariff turmoil Trump said in April that China would have agreed to a deal on the sale of TikTok if it were not for a dispute over his tariffs on Beijing. ByteDance has confirmed talks with the US government, saying key matters needed to be resolved and that any deal would be "subject to approval under Chinese law". Possible solutions reportedly include seeing existing US investors in ByteDance roll over their stakes into a new independent global TikTok company. Additional US investors, including Oracle and private equity firm Blackstone, would be brought on to reduce ByteDance's share in the new TikTok. Much of TikTok's US activity is already housed on Oracle servers, and the company's chairman, Larry Ellison, is a longtime Trump ally. Uncertainty remains, particularly over what would happen to TikTok's valuable algorithm. "TikTok without its algorithm is like Harry Potter without his wand -- it's simply not as powerful," said Forrester Principal Analyst Kelsey Chickering. Meanwhile, it appears TikTok is continuing with business as usual. TikTok on Monday introduced a new "Symphony" suite of generative artificial intelligence tools for advertisers to turn words or photos into video snippets for the platform.

A federal law requiring TikTok's sale or ban on national security grounds was due to take effect the day before Trump's January inauguration.

Trump extends TikTok deadline by 90 more days, says White House

A man in China has refused to bow down to property developers by building his own 10-storey tower in a place where every other house has been razed down to build a luxury resort. Chen Tianming lives in a village in Guizhou province, where all the houses were bought and torn down in 2018. However, the 42-year-old is in no mood to give in after seven years.&nbsp;His stone bungalow now looks like a pyramid with 10 storeys. The upper floors move when the wind is strong, and so he has tethered them to the ground with ropes and cables. The house is rickety and weird, with balconies and stairs poking out. It is built using plywood and contorted beams, and appears on shaky ground.&nbsp;After Chen refused to give in to developers, the project failed to take off. He received several demolition notices, but defied them all and continued to raise the height of his house, adding more and more floors to it. Chinese media compares his house to the creations of legendary Japanese animator Hayao Miyazaki.&nbsp;Also Read: <a href="https://www.wionews.com/trending/subproject-94-the-secret-cia-program-to-create-army-of-remote-controlled-animal-assassins-1749902696736">Declassified CIA documents reveal plans to create an army of remote-controlled 'animal assassins' during Cold War</a>&nbsp;He told AFP that his project started off as a practical way to expand the house, but his labyrinthine construction later turned into "an interest and hobby".&nbsp;<h2>Chen's 10-storey tower in Chinese village lacks permits</h2>&nbsp;Chen's house lacks proper building permits and has been deemed dangerous since the upper floors sway in the wind. But he has sworn not to let anyone demolish his house. "People often say it's unsafe and should be demolished... but I'll definitely never let anyone tear it down."&nbsp;Also Read: <a href="https://www.wionews.com/trending/man-drives-300km-hr-films-police-chase-and-posts-it-online-it-is-now-being-used-as-evidence-against-him-1749900181909">Man drives 300km/hr, films police chase and posts it online. It is now being used as evidence against him</a>&nbsp;Chen has received several demolition notices, ordering him to destroy the higher floors and only retain the original building. He completed construction on the fifth floor in 2019, the sixth in 2022 and the seventh in 2023.&nbsp;It was deemed an illegal construction last August. But he is in no mood to budge, and has spent tens of thousands of yuan fighting the notices in court. He has not won any of the preliminary hearings either, and has continued to appeal.&nbsp;<h2>Chen's house has become a tourist attraction</h2>&nbsp;Chen's house was built by his grandfather in the 1980s, and his parents refused to sell it to the developers who wanted to build a resort, complete with a theatre and artificial lake. All the houses in the area were bulldozed. In order to protect his home, Chen slept alone in the house so that no one would raze it at night.&nbsp;The project was scrapped six months later, and his house was given the name "nail house" - a Chinese term for those whose owners dig in and refuse to relocate despite official compensation offers.&nbsp;Today, Chen lights up his house with decorative lanterns at home, attracting the attention of passersby. In fact, it has become a tourist attraction itself, and local residents think it might be an official landmark. &nbsp;

A man in a Chinese village has built a 10-storey pyramid like house with things poking out from everywhere. He has defied every demolition order and is fighting notices in the court. But, he is adamant not to let the authorities raze his house.

A man in China has refused to bow down to property developers by building his own 10-storey tower in a place where every other house has been razed down to build a luxury resort. Chen Tianming lives in a village in Guizhou province, where all the houses were bought and torn down in 2018. However, the 42-year-old is in no mood to give in after seven years. His stone bungalow now looks like a pyramid with 10 storeys. The upper floors move when the wind is strong, and so he has tethered them to the ground with ropes and cables. The house is rickety and weird, with balconies and stairs poking out. It is built using plywood and contorted beams, and appears on shaky ground. After Chen refused to give in to developers, the project failed to take off. He received several demolition notices, but defied them all and continued to raise the height of his house, adding more and more floors to it. Chinese media compares his house to the creations of legendary Japanese animator Hayao Miyazaki. Also Read: Declassified CIA documents reveal plans to create an army of remote-controlled 'animal assassins' during Cold War He told AFP that his project started off as a practical way to expand the house, but his labyrinthine construction later turned into "an interest and hobby". Chen's 10-storey tower in Chinese village lacks permits Chen's house lacks proper building permits and has been deemed dangerous since the upper floors sway in the wind. But he has sworn not to let anyone demolish his house. "People often say it's unsafe and should be demolished... but I'll definitely never let anyone tear it down." Also Read: Man drives 300km/hr, films police chase and posts it online. It is now being used as evidence against him Chen has received several demolition notices, ordering him to destroy the higher floors and only retain the original building. He completed construction on the fifth floor in 2019, the sixth in 2022 and the seventh in 2023. It was deemed an illegal construction last August. But he is in no mood to budge, and has spent tens of thousands of yuan fighting the notices in court. He has not won any of the preliminary hearings either, and has continued to appeal. Chen's house has become a tourist attraction Chen's house was built by his grandfather in the 1980s, and his parents refused to sell it to the developers who wanted to build a resort, complete with a theatre and artificial lake. All the houses in the area were bulldozed. In order to protect his home, Chen slept alone in the house so that no one would raze it at night. The project was scrapped six months later, and his house was given the name "nail house" - a Chinese term for those whose owners dig in and refuse to relocate despite official compensation offers. Today, Chen lights up his house with decorative lanterns at home, attracting the attention of passersby. In fact, it has become a tourist attraction itself, and local residents think it might be an official landmark.

A man in a Chinese village has built a 10-storey pyramid like house with things poking out from everywhere. He has defied every demolition order and is fighting notices in the court. But, he is adamant not to let authorities raze his house.

Chinese man fights to keep his 10-storey pyramid house held down with ropes deemed unsafe

A new video from China's Tiangong Space Station has conspiracy theorists convinced that the astronauts aren't actually in space. They pointed to a humble glass of water to prove their point, asking how the water inside the glass is where there is no gravity in space? In the <a href="https://x.com/BGatesIsaPyscho/status/1934197810645332426">video</a>, as the astronauts share their experience, a glass of water can be seen sitting on a table near them.Some users on X noted that the water was sitting perfectly well inside the glass. They asked, How is it possible? In space, where there is no gravity, everything floats around. This has led us to think that even water inside a glass should be swirling inside the space station.&nbsp;"Why isn't the water floating out of the glass?" a user asked.Another assumed that the water should be floating around, a risky thing at a space station which also houses several valuable and delicate instruments. "Call me crazy but if I was orbiting the Earth at 17,500mph in zero gravity surrounded complex computers, I probably wouldn’t risk an unconcealed glass of water resting on the table."&nbsp;The user said that maybe it is stuck to the surface using Velcro.Even if that keeps the glass stuck, what holds back the water?&nbsp;<h2>This is how water behaves in space</h2>&nbsp;There is nothing sinister happening in this picture, and there is a completely scientific explanation for the water.&nbsp;Water likes to stay with its buddies (other water molecules) and in a safe space (the glass). He told Associated Press, "Water molecules like to stick to glass and also to other water molecules more than they like to disperse in the air."&nbsp;Water consists of slightly positive hydrogen atoms and slightly negative oxygen atoms, creating a strong surface tension as they pull towards each other. This is why water stays intact and is not influenced by external forces.&nbsp;Chinese astronauts often share insights from the Tiangong space station. In this particular video, they were talking to students on Earth, teaching them how buoyancy works differently in space by suspending a ping-pong ball in water.&nbsp;Earlier, in one such video, they shared everything that the space station held, including astronaut beds. They also gave a peek through a window into space and what Earth looked like from up there.

Does water float in space? A video from the Tiangong space station has intrigued people, who are asking how is the water staying inside a glass, without flowing out in zero gravity?

A new video from China's Tiangong Space Station has conspiracy theorists convinced that the astronauts aren't actually in space. They pointed to a humble glass of water to prove their point, asking how the water inside the glass is where there is no gravity in space? In the video, as the astronauts share their experience, a glass of water can be seen sitting on a table near them. Some users on X noted that the water was sitting perfectly well inside the glass. They asked, How is it possible? In space, where there is no gravity, everything floats around. This has led us to think that even water inside a glass should be swirling inside the space station. "Why isn't the water floating out of the glass?" a user asked. Another assumed that the water should be floating around, a risky thing at a space station which also houses several valuable and delicate instruments. "Call me crazy but if I was orbiting the Earth at 17,500mph in zero gravity surrounded complex computers, I probably wouldn’t risk an unconcealed glass of water resting on the table." The user said that maybe it is stuck to the surface using Velcro. Even if that keeps the glass stuck, what holds back the water? This is how water behaves in space There is nothing sinister happening in this picture, and there is a completely scientific explanation for the water. Water likes to stay with its buddies (other water molecules) and in a safe space (the glass). He told Associated Press, "Water molecules like to stick to glass and also to other water molecules more than they like to disperse in the air." Water consists of slightly positive hydrogen atoms and slightly negative oxygen atoms, creating a strong surface tension as they pull towards each other. This is why water stays intact and is not influenced by external forces. Chinese astronauts often share insights from the Tiangong space station. In this particular video, they were talking to students on Earth, teaching them how buoyancy works differently in space by suspending a ping-pong ball in water. Earlier, in one such video, they shared everything that the space station held, including astronaut beds. They also gave a peek through a window into space and what Earth looked like from up there.

Does water float in space? A video from the Tiangong space station has intrigued people, who are asking how is the water staying inside a glass, without flowing out in zero gravity?

'Why isn't it...?' A glass of water at Tiangong Space Station leads to questions

China’s consumer spending continues to struggle as the country’s economic recovery remains slow and uncertain. Despite a brief uptick in retail sales for May, analysts warn that the underlying issues driving subdued demand, such as stagnant income growth, a lack of social safety nets, and shifting consumer preferences, are unlikely to subside soon.In recent months, China has witnessed four consecutive months of declining consumer prices, coupled with persistently low consumer confidence.&nbsp;CNBC reported that disposable income growth has halved since the pandemic, now growing at a mere 5 per cent annually, according to Jeremy Stevens, an Asia economist at Standard Bank. This stagnation in income, combined with high youth unemployment and a struggling real estate market, continues to dampen consumer sentiment.A survey conducted by the People’s Bank of China in the third quarter of 2024 found that 64 per cent of Chinese households would rather save than spend, a trend that has been persistent since late 2023. This preference for saving, exacerbated by a limited social safety net, has made it difficult for the government to spur long-term consumer spending.<h2>May retail sales boosted by subsidies and promotions</h2>Despite these ongoing challenges, China’s retail sector experienced a welcome boost in May, with sales growing 6.4 per cent year-on-year, sharply surpassing analysts' expectations of a 5 per cent increase.&nbsp;This surge was partly attributed to the government’s ongoing consumer goods trade-in programme, which incentivised spending, along with a surge in online shopping during the “618” e-commerce event and a rise in foreign tourists following the expansion of China’s visa-free entry list.While the spike in retail sales was encouraging, experts caution that it may not signal a sustainable recovery. Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, noted that the rising sales were a short-term benefit, with falling property prices potentially hurting long-term consumer confidence.&nbsp;According to the National Bureau of Statistics (NBS), property investment continues to contract, dragging down overall economic momentum.<h2>China's labour market struggles</h2>The weak consumer sentiment is closely linked to ongoing challenges in the Chinese labour market. Unemployment among young people aged 16 to 24 stood at a record 15.8 per cent in April, while the official urban unemployment rate hovered around 5 per cent.&nbsp;These figures highlight the lack of wage growth and the challenges posed by an uncertain job market, especially in sectors impacted by US tariffs.Additionally, a recent survey showed that over 60 per cent of respondents favoured saving over spending, indicating that uncertainty about the future and concerns over financial stability continue to weigh heavily on consumers’ minds.&nbsp;Many Chinese citizens also face high out-of-pocket costs for healthcare, education, and retirement, contributing to their reluctance to spend.<h2>Government's efforts to spur consumption</h2>In response to these challenges, Chinese authorities have introduced several measures aimed at stimulating consumption. These include boosting subsidies for consumer goods and expanding the availability of public holidays and services sector consumption vouchers.&nbsp;However, unlike the mass cash handouts in the US and Hong Kong post-pandemic, China has refrained from large-scale financial stimulus, opting instead for more targeted support.Analysts, however, warn that these efforts may not be enough to drive sustained recovery. The consumer sector remains under pressure, with deflationary trends continuing in consumer prices and deeper declines in factory-gate prices.&nbsp;Moreover, many local governments have already paused their consumer goods trade-in programmes as initial subsidies have been exhausted.<h2>A short-term recovery or a long-term struggle?</h2>Despite the May sales surge, the outlook for China’s consumer market remains uncertain. While export growth has remained resilient, particularly to Southeast Asia, the EU, and Africa, domestic demand continues to lag.&nbsp;The ongoing property slump, tightening job market, and economic uncertainty suggest that China may face a prolonged period of weak consumer spending.Some analysts are hopeful that additional fiscal measures may come in the latter half of 2024 if growth continues to falter. However, without stronger demand-side stimulus, many predict that any recovery in consumer spending will be short-lived.China’s economic trajectory will ultimately depend on how effectively it addresses the persistent structural challenges in its labour market and real estate sector. For now, though, the country’s consumer sector faces a challenging road ahead.

Despite a brief uptick in retail sales for May, analysts warn that the underlying issues driving subdued demand, such as stagnant income growth, a lack of social safety nets, and shifting consumer preferences, are unlikely to subside soon.

China’s consumer spending continues to struggle as the country’s economic recovery remains slow and uncertain. Despite a brief uptick in retail sales for May, analysts warn that the underlying issues driving subdued demand, such as stagnant income growth, a lack of social safety nets, and shifting consumer preferences, are unlikely to subside soon. In recent months, China has witnessed four consecutive months of declining consumer prices, coupled with persistently low consumer confidence. CNBC reported that disposable income growth has halved since the pandemic, now growing at a mere 5 per cent annually, according to Jeremy Stevens, an Asia economist at Standard Bank. This stagnation in income, combined with high youth unemployment and a struggling real estate market, continues to dampen consumer sentiment. A survey conducted by the People’s Bank of China in the third quarter of 2024 found that 64 per cent of Chinese households would rather save than spend, a trend that has been persistent since late 2023. This preference for saving, exacerbated by a limited social safety net, has made it difficult for the government to spur long-term consumer spending. May retail sales boosted by subsidies and promotions Despite these ongoing challenges, China’s retail sector experienced a welcome boost in May, with sales growing 6.4 per cent year-on-year, sharply surpassing analysts' expectations of a 5 per cent increase. This surge was partly attributed to the government’s ongoing consumer goods trade-in programme, which incentivised spending, along with a surge in online shopping during the “618” e-commerce event and a rise in foreign tourists following the expansion of China’s visa-free entry list. While the spike in retail sales was encouraging, experts caution that it may not signal a sustainable recovery. Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, noted that the rising sales were a short-term benefit, with falling property prices potentially hurting long-term consumer confidence. According to the National Bureau of Statistics (NBS), property investment continues to contract, dragging down overall economic momentum. China's labour market struggles The weak consumer sentiment is closely linked to ongoing challenges in the Chinese labour market. Unemployment among young people aged 16 to 24 stood at a record 15.8 per cent in April, while the official urban unemployment rate hovered around 5 per cent. These figures highlight the lack of wage growth and the challenges posed by an uncertain job market, especially in sectors impacted by US tariffs. Additionally, a recent survey showed that over 60 per cent of respondents favoured saving over spending, indicating that uncertainty about the future and concerns over financial stability continue to weigh heavily on consumers’ minds. Many Chinese citizens also face high out-of-pocket costs for healthcare, education, and retirement, contributing to their reluctance to spend. Government's efforts to spur consumption In response to these challenges, Chinese authorities have introduced several measures aimed at stimulating consumption. These include boosting subsidies for consumer goods and expanding the availability of public holidays and services sector consumption vouchers. However, unlike the mass cash handouts in the US and Hong Kong post-pandemic, China has refrained from large-scale financial stimulus, opting instead for more targeted support. Analysts, however, warn that these efforts may not be enough to drive sustained recovery. The consumer sector remains under pressure, with deflationary trends continuing in consumer prices and deeper declines in factory-gate prices. Moreover, many local governments have already paused their consumer goods trade-in programmes as initial subsidies have been exhausted. A short-term recovery or a long-term struggle? Despite the May sales surge, the outlook for China’s consumer market remains uncertain. While export growth has remained resilient, particularly to Southeast Asia, the EU, and Africa, domestic demand continues to lag. The ongoing property slump, tightening job market, and economic uncertainty suggest that China may face a prolonged period of weak consumer spending. Some analysts are hopeful that additional fiscal measures may come in the latter half of 2024 if growth continues to falter. However, without stronger demand-side stimulus, many predict that any recovery in consumer spending will be short-lived. China’s economic trajectory will ultimately depend on how effectively it addresses the persistent structural challenges in its labour market and real estate sector. For now, though, the country’s consumer sector faces a challenging road ahead.

Despite a brief uptick in retail sales for May, analysts warn that the underlying issues driving subdued demand, such as stagnant income growth, a lack of social safety nets, and shifting consumer preferences, are unlikely to subside soon.

China's consumer spending faces lingering challenges despite May surge

Indian Defence Minister Rajnath Singh is likely to visit China later this month to attend the Shanghai Cooperation Organisation or SCO's defence ministers' meeting. The meeting is happening in Qingdao, a major coastal city in eastern Shandong Province, China.&nbsp;China is the host of the grouping for this year, and will be also hosting the foreign ministers' meeting and the summit in next few months. SCO is a major grouping of 10 countries—China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India, Pakistan, Iran, and Belarus—that focuses on issues like counter-terror, connectivity etc.&nbsp;Indian Defence Minister Rajnath Singh and Chinese Defence Minister Admiral Dong Jun last met in Vientiane, Laos on the sidelines of the 11th ASEAN Defence Ministers' Meeting-Plus (ADMM-Plus). This was their first meeting since the India-China agreement in October 2024 to resume patrolling and disengage troops along the Line of Actual Control (LAC) in eastern Ladakh, resolving the standoff that began with the 2020 Galwan clash.&nbsp;The expected visit of Indian Defence Minister to China will be the first ministerial visit from India to China since the October thaw in ties.Both sides, since the meeting between PM Modi and Chinese President Xi Jinping in October 2024 on the sidelines of the Kazan BRICS summit in Russia have been working to normalise the ties. This includes resumption of the Kailash Manasarovar Yatra, cooperation on sharing of river water data, resumption of direct air services and working on people ties, which includes taking practical steps for visa facilitation and exchanges between media and think-tanks.&nbsp;India has also extended its support to the Chinese presidency of the SCO, something that was restated during talks between Indian foreign secretary Vikram Misri and Chinese Vice Foreign minister Sun Weidong last week in Delhi. The Chinese foreign ministry in a statement said, "the Indian side reaffirmed its support for China's Shanghai Cooperation Organization presidency."&nbsp;Several high level visits have also happened including the visit of Indian NSA Ajit Doval to China in December for the 23rd Special Representatives (SR) Meeting, and the Indian Foreign Secretary's visit to Beijing in January. &nbsp;It is expected that Chinese FM Wang Yi will visit India later this year for the 24th SR level talks.&nbsp;&nbsp;Chinese President Xi Jinping had also extended his condolences to Indian leadership in the aftermath of the tragic Ahmedabad&nbsp;plane&nbsp;crash.

Indian Defence Minister Rajnath Singh and Chinese Defence Minister Admiral Dong Jun last met in Vientiane, Laos on the sidelines of the 11th ASEAN Defence Ministers' Meeting-Plus (ADMM-Plus).

Indian Defence Minister Rajnath Singh is likely to visit China later this month to attend the Shanghai Cooperation Organisation or SCO's defence ministers' meeting. The meeting is happening in Qingdao, a major coastal city in eastern Shandong Province, China. China is the host of the grouping for this year, and will be also hosting the foreign ministers' meeting and the summit in next few months. SCO is a major grouping of 10 countries—China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India, Pakistan, Iran, and Belarus—that focuses on issues like counter-terror, connectivity etc. Indian Defence Minister Rajnath Singh and Chinese Defence Minister Admiral Dong Jun last met in Vientiane, Laos on the sidelines of the 11th ASEAN Defence Ministers' Meeting-Plus (ADMM-Plus). This was their first meeting since the India-China agreement in October 2024 to resume patrolling and disengage troops along the Line of Actual Control (LAC) in eastern Ladakh, resolving the standoff that began with the 2020 Galwan clash. The expected visit of Indian Defence Minister to China will be the first ministerial visit from India to China since the October thaw in ties. Both sides, since the meeting between PM Modi and Chinese President Xi Jinping in October 2024 on the sidelines of the Kazan BRICS summit in Russia have been working to normalise the ties. This includes resumption of the Kailash Manasarovar Yatra, cooperation on sharing of river water data, resumption of direct air services and working on people ties, which includes taking practical steps for visa facilitation and exchanges between media and think-tanks. India has also extended its support to the Chinese presidency of the SCO, something that was restated during talks between Indian foreign secretary Vikram Misri and Chinese Vice Foreign minister Sun Weidong last week in Delhi. The Chinese foreign ministry in a statement said, "the Indian side reaffirmed its support for China's Shanghai Cooperation Organization presidency." Several high level visits have also happened including the visit of Indian NSA Ajit Doval to China in December for the 23rd Special Representatives (SR) Meeting, and the Indian Foreign Secretary's visit to Beijing in January. It is expected that Chinese FM Wang Yi will visit India later this year for the 24th SR level talks. Chinese President Xi Jinping had also extended his condolences to Indian leadership in the aftermath of the tragic Ahmedabad plane crash.

Indian Defence Minister Rajnath Singh and Chinese Defence Minister Admiral Dong Jun last met in Vientiane, Laos on the sidelines of the 11th ASEAN Defence Ministers' Meeting-Plus (ADMM-Plus).

Indian Defence Minister Rajnath Singh likely to visit China this month

The United States has claimed that Chinese tech giant Huawei will produce no more than 200,000 advanced AI chips in 2025, significantly below the country’s rising&nbsp;demand.&nbsp;&nbsp;But officials warn this could lull Washington into a false sense of security, as China accelerates its semiconductor ambitions and chips away at American dominance.&nbsp;As quoted by Reuters, US Commerce Under Secretary Jeffrey Kessler told a congressional subcommittee on Thursday that Huawei’s Ascend AI processors—designed to rival Nvidia’s chips—will mostly stay within China due to sweeping export restrictions. But he cautioned lawmakers against complacency.&nbsp;“We shouldn’t take too much comfort in the fact that China’s production of these advanced chips is relatively small,” Kessler told the House Foreign Affairs Committee. “China is catching up quickly.”<h2>Huawei’s AI chip ambitions face a production ceiling</h2>The US has spent the past five years building a tech barrier around Chinese firms—blocking access to advanced lithography equipment, semiconductor IP, and chipmaking software. Huawei, under American sanctions since 2019, remains the centrepiece of this strategy.&nbsp;At the hearing, Kessler said most of Huawei’s projected 200,000-chip output this year would remain within China’s borders.&nbsp;&nbsp;As quoted by Reuters, he added that the figure is a “ceiling, not a floor”—reflecting Huawei’s constrained access to chip fabrication tools and high-end packaging equipment.<h2>China’s AI chip gap: Scale vs sophistication</h2>According to TechInsights, China’s domestic AI accelerator demand crossed 1.5 million units in 2024—meaning Huawei’s 2025 output would meet less than 15 per cent of market needs. In contrast, OpenAI’s Stargate facility in Texas is expected to house over 500,000 Nvidia H100-class chips, more than double Huawei’s annual production.&nbsp;Huawei’s founder and CEO Ren Zhengfei admitted in an interview with China Daily this week that its chips remain “at least one generation behind” US rivals. Still, he noted that the company is investing over $25 billion annually in R&amp;D to close the gap.&nbsp;Meanwhile, White House AI advisor David Sacks told Bloomberg that while Chinese AI models are 3–6 months behind American ones, the real differentiator is scale—not innovation. “If they close the manufacturing gap, that’s when the global balance shifts,” Sacks said.<h2>“Smuggling is happening”: US contradicts Nvidia</h2>In a sharp rebuke of Nvidia CEO Jensen Huang, who previously told Bloomberg there was “no evidence” of advanced US chips being diverted to China, Kessler offered a blunt counterpoint, “It’s happening. It’s a fact,” he said during testimony, as quoted by Reuters. “We do see significant efforts by wrongdoers to divert AI chips.”&nbsp;Kessler urged Congress to fund 200 new enforcement officers and expand overseas teams to crack down on diversion networks using third-party nations to circumvent export bans.<h2>Backdrop: A tech war born from tariffs</h2>The AI chip dispute is merely the latest front in a broader US–China rivalry that has grown into a full-blown economic cold war over the past seven years. The roots of this conflict trace back to President Donald Trump’s first term, when the US began imposing sweeping tariffs on Chinese goods.&nbsp;The standoff escalated dramatically in February 2025, when Trump—newly returned to the White House—signed an executive order imposing a 10 per cent blanket tariff on all Chinese imports. He also revoked the de minimis exemption for low-value parcels, targeting e-commerce shipments that he said were “fentanyl pipelines.”&nbsp;Beijing hit back with tariffs on coal, liquefied natural gas, crude oil, and vehicle components. It also introduced export controls on rare earths—specifically terbium, dysprosium, and gadolinium—strategic minerals critical to high-performance electronics and military hardware.&nbsp;By March 2025, the confrontation deepened. Trump raised tariffs to 20 per cent, then up to 54 per cent under a so-called “Liberation Day” order. In response, China escalated duties on key American goods to as high as 125 per cent and filed a formal complaint against the US at the World Trade Organization.&nbsp;Both nations also hardened export controls on semiconductors, AI software, and chipmaking materials, sending shockwaves through global tech supply chains. The US tightened licensing requirements for chip design tools, while China restricted access to gallium, graphite, and other rare minerals.&nbsp;A fragile ceasefire was reached in May 2025, when negotiators from both sides met in Geneva and agreed to a 90-day moratorium on new tariffs. But the calm didn’t last.&nbsp;On June 5, a pivotal 90-minute phone call between Trump and Chinese President Xi Jinping helped restore momentum. That led to high-level trade talks in London from June 9–10, where officials from both countries finalised a framework agreement to resume rare earth exports and stabilise the tech trade.&nbsp;Trump publicly declared the deal “done” on June 11, pending formal sign-off from Xi. But analysts remain cautious.<h2>What lies ahead?</h2>Although Huawei’s chip capacity remains capped for now, US officials are under no illusion that this advantage will last.&nbsp;As quoted by Bloomberg, Sacks warned that “the AI landscape is changing month by month.” If China achieves chip self-sufficiency at scale, it could reshape global power structures—not just in tech, but geopolitics too.&nbsp;For Washington, that makes enforcement, alliances, and R&amp;D investment more urgent than ever.“We are ahead today,” Kessler said. “But tomorrow is still up for grabs.”&nbsp;(With inputs from the agencies)

The US has spent the past five years building a tech barrier around Chinese firms—blocking access to advanced lithography equipment, semiconductor IP, and chipmaking software. 

The United States has claimed that Chinese tech giant Huawei will produce no more than 200,000 advanced AI chips in 2025, significantly below the country’s rising demand. But officials warn this could lull Washington into a false sense of security, as China accelerates its semiconductor ambitions and chips away at American dominance. As quoted by Reuters, US Commerce Under Secretary Jeffrey Kessler told a congressional subcommittee on Thursday that Huawei’s Ascend AI processors—designed to rival Nvidia’s chips—will mostly stay within China due to sweeping export restrictions. But he cautioned lawmakers against complacency. “We shouldn’t take too much comfort in the fact that China’s production of these advanced chips is relatively small,” Kessler told the House Foreign Affairs Committee. “China is catching up quickly.” Huawei’s AI chip ambitions face a production ceiling The US has spent the past five years building a tech barrier around Chinese firms—blocking access to advanced lithography equipment, semiconductor IP, and chipmaking software. Huawei, under American sanctions since 2019, remains the centrepiece of this strategy. At the hearing, Kessler said most of Huawei’s projected 200,000-chip output this year would remain within China’s borders. As quoted by Reuters, he added that the figure is a “ceiling, not a floor”—reflecting Huawei’s constrained access to chip fabrication tools and high-end packaging equipment. China’s AI chip gap: Scale vs sophistication According to TechInsights, China’s domestic AI accelerator demand crossed 1.5 million units in 2024—meaning Huawei’s 2025 output would meet less than 15 per cent of market needs. In contrast, OpenAI’s Stargate facility in Texas is expected to house over 500,000 Nvidia H100-class chips, more than double Huawei’s annual production. Huawei’s founder and CEO Ren Zhengfei admitted in an interview with China Daily this week that its chips remain “at least one generation behind” US rivals. Still, he noted that the company is investing over $25 billion annually in R&D to close the gap. Meanwhile, White House AI advisor David Sacks told Bloomberg that while Chinese AI models are 3–6 months behind American ones, the real differentiator is scale—not innovation. “If they close the manufacturing gap, that’s when the global balance shifts,” Sacks said. “Smuggling is happening”: US contradicts Nvidia In a sharp rebuke of Nvidia CEO Jensen Huang, who previously told Bloomberg there was “no evidence” of advanced US chips being diverted to China, Kessler offered a blunt counterpoint, “It’s happening. It’s a fact,” he said during testimony, as quoted by Reuters. “We do see significant efforts by wrongdoers to divert AI chips.” Kessler urged Congress to fund 200 new enforcement officers and expand overseas teams to crack down on diversion networks using third-party nations to circumvent export bans. Backdrop: A tech war born from tariffs The AI chip dispute is merely the latest front in a broader US–China rivalry that has grown into a full-blown economic cold war over the past seven years. The roots of this conflict trace back to President Donald Trump’s first term, when the US began imposing sweeping tariffs on Chinese goods. The standoff escalated dramatically in February 2025, when Trump—newly returned to the White House—signed an executive order imposing a 10 per cent blanket tariff on all Chinese imports. He also revoked the de minimis exemption for low-value parcels, targeting e-commerce shipments that he said were “fentanyl pipelines.” Beijing hit back with tariffs on coal, liquefied natural gas, crude oil, and vehicle components. It also introduced export controls on rare earths—specifically terbium, dysprosium, and gadolinium—strategic minerals critical to high-performance electronics and military hardware. By March 2025, the confrontation deepened. Trump raised tariffs to 20 per cent, then up to 54 per cent under a so-called “Liberation Day” order. In response, China escalated duties on key American goods to as high as 125 per cent and filed a formal complaint against the US at the World Trade Organization. Both nations also hardened export controls on semiconductors, AI software, and chipmaking materials, sending shockwaves through global tech supply chains. The US tightened licensing requirements for chip design tools, while China restricted access to gallium, graphite, and other rare minerals. A fragile ceasefire was reached in May 2025, when negotiators from both sides met in Geneva and agreed to a 90-day moratorium on new tariffs. But the calm didn’t last. On June 5, a pivotal 90-minute phone call between Trump and Chinese President Xi Jinping helped restore momentum. That led to high-level trade talks in London from June 9–10, where officials from both countries finalised a framework agreement to resume rare earth exports and stabilise the tech trade. Trump publicly declared the deal “done” on June 11, pending formal sign-off from Xi. But analysts remain cautious. What lies ahead? Although Huawei’s chip capacity remains capped for now, US officials are under no illusion that this advantage will last. As quoted by Bloomberg, Sacks warned that “the AI landscape is changing month by month.” If China achieves chip self-sufficiency at scale, it could reshape global power structures—not just in tech, but geopolitics too. For Washington, that makes enforcement, alliances, and R&D investment more urgent than ever. “We are ahead today,” Kessler said. “But tomorrow is still up for grabs.” (With inputs from the agencies)

US officials warn that Huawei’s limited AI chip output should not mask China’s rapid progress in semiconductors amid an escalating tech war.

What’s behind the US move to limit Huawei’s AI chip production in 2025?

After weeks of US-China trade war, US President Donald Trump on Wednesday (June 11) announced that they have reached a deal with China, subject to final approval with Chinese President Xi Jinping.Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US.In return, the US will provide to China with what was agreed to, "INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!)," the US president said."OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME," Trump announced.Talking about the tariffs on China and the US, Trump said the US is getting a total of 55% tariffs, while China is getting 10%."WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!," he added.Earlier on Tuesday, top officials from the United States and China said they reached an agreement on a “framework” after two days of high-level trade talks in London.US Commerce Secretary Howard Lutnick expressed optimism, saying that concerns regarding rare earths “will be resolved.”While, China International Trade Representative Li Chenggang separately told reporters, “Our communication has been very professional, rational, in-depth and candid.” He expressed hope that progress made during talks in London would help boost trust between both sides.<h2>US-China trade war</h2>Tensions between the US and China began when Trump signed an executive order imposing a 10 per cent tariff on Chinese imports, on February 1.Days later, China strike back, imposing a 15 per cent tariff on US coal and LNG, and a 10 per cent tariff on crude oil, large vehicles, and farm machinery. Moreover, it also brought in export controls on key rare earth minerals, such as molybdenum and tellurium.The trade war escalated as the two countries began rising the tariff numbers. Later in April, Trump upped the pressure again as he hiked the tariffs first to 104 per cent, then 125, and finally to 145 per cent. China struck back with its own 84 per cent levy. By 11 April, China raised its tariffs to match the US at 125 per cent.&nbsp;

Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US.

After weeks of US-China trade war, US President Donald Trump on Wednesday (June 11) announced that they have reached a deal with China, subject to final approval with Chinese President Xi Jinping. Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US. In return, the US will provide to China with what was agreed to, "INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!)," the US president said. "OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME," Trump announced. Talking about the tariffs on China and the US, Trump said the US is getting a total of 55% tariffs, while China is getting 10%. "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!," he added. Earlier on Tuesday, top officials from the United States and China said they reached an agreement on a “framework” after two days of high-level trade talks in London. US Commerce Secretary Howard Lutnick expressed optimism, saying that concerns regarding rare earths “will be resolved.” While, China International Trade Representative Li Chenggang separately told reporters, “Our communication has been very professional, rational, in-depth and candid.” He expressed hope that progress made during talks in London would help boost trust between both sides. US-China trade war Tensions between the US and China began when Trump signed an executive order imposing a 10 per cent tariff on Chinese imports, on February 1. Days later, China strike back, imposing a 15 per cent tariff on US coal and LNG, and a 10 per cent tariff on crude oil, large vehicles, and farm machinery. Moreover, it also brought in export controls on key rare earth minerals, such as molybdenum and tellurium. The trade war escalated as the two countries began rising the tariff numbers. Later in April, Trump upped the pressure again as he hiked the tariffs first to 104 per cent, then 125, and finally to 145 per cent. China struck back with its own 84 per cent levy. By 11 April, China raised its tariffs to match the US at 125 per cent.

Trump in a post on Truth Social, laid out the details of the deal, saying that full magnets and any necessary rare earths will be supplied to the US.

'RELATIONSHIP IS EXCELLENT': US-China finalise trade deal, Trump announces | From tariffs to rare earths - All details inside

A leading US-based expert on China has warned of a threat “worse than COVID” hitting the country after two Chinese nationals were arrested on charges of smuggling a toxic agricultural fungus into the US and has suggested a complete severing of ties with Beijing to avoid another humongous tragedy. &nbsp;America’s top expert on Chinese affairs, Gordon G Chang was referring to the arrest of Yunqing Jian, 33, and her boyfriend Zunyong Liu, 34, for allegedly smuggling a fungus called ‘Fusarium graminearum’ that causes the ‘head blight’ disease in wheat, barley, maize, and rice, into the US and can pose a threat to America’s food security and public safety.&nbsp;The US Justice Department said the fungal pathogen is classified in scientific literature as a “potential agroterrorism weapon” and causes losses worth billions of dollars every year. It causes vomiting, liver damage, and reproductive defects in humans and livestock.&nbsp;<h2>‘This was an attack on the United States’</h2>&nbsp;&nbsp;“This was an attack on the United States. The only way to stop this is to sever relations with China,” Chang told Fox News and warned that the alleged plot points to a covert, prolonged campaign by China to destabilise the US from within.Chang further warned that the plot is more than a stray biological smuggling case—it’s part of a broader “people’s war” strategy ingrained in Maoist doctrine to wear down and destabilise enemies politically, economically, and psychologically.&nbsp;“If we don’t defend ourselves with urgency and resolve, we’re going to get hit really hard. And not just with COVID, not just with fentanyl—but perhaps with something worse,” added Chang, who analyses activities of the Chinese Communist Party.“Xi Jinping talks about going to war all the time, and he is mobilising all of Chinese society to go to war. So we can lose our country, even though we are the far stronger nation because we are not defending ourselves with the vigour and the determination that is necessary.”&nbsp;“In May 2019, the state media People’s Daily, the most authoritative publication in China, carried a landmark editorial that declared a people’s war on us. We are Americans, so we think we are entitled to ignore the propaganda of hostile regimes. But for a communist party, that phrase has great resonance. What they are doing with their strident anti-Americanism is creating a justification to strike our country,” Chang said.&nbsp;“We have got to put this into context. In 2020, Americans in all 50 states received unsolicited seeds from China. I think that was an attempt to plant invasive species into the US. And then this year, Timu, the online Chinese retailer, sent seeds to Americans unsolicited," added Chang, the author of ‘China Is Going to War’. Chang has lived and worked in China and Hong Kong for almost two decades.&nbsp;The origin of the SARS-CoV-2 virus, which caused the COVID-19 pandemic, remains highly controversial, as some experts allege that it was engineered in a Chinese laboratory.

Gordon G Chang, an expert on Chinese affairs, warned that the plot is more than a stray biological smuggling case—it’s part of a broader “people’s war” strategy ingrained in Maoist doctrine to wear down and destabilise enemies politically, economically, and psychologically.

A leading US-based expert on China has warned of a threat “worse than COVID” hitting the country after two Chinese nationals were arrested on charges of smuggling a toxic agricultural fungus into the US and has suggested a complete severing of ties with Beijing to avoid another humongous tragedy. America’s top expert on Chinese affairs, Gordon G Chang was referring to the arrest of Yunqing Jian, 33, and her boyfriend Zunyong Liu, 34, for allegedly smuggling a fungus called ‘Fusarium graminearum’ that causes the ‘head blight’ disease in wheat, barley, maize, and rice, into the US and can pose a threat to America’s food security and public safety. The US Justice Department said the fungal pathogen is classified in scientific literature as a “potential agroterrorism weapon” and causes losses worth billions of dollars every year. It causes vomiting, liver damage, and reproductive defects in humans and livestock. ‘This was an attack on the United States’ “This was an attack on the United States. The only way to stop this is to sever relations with China,” Chang told Fox News and warned that the alleged plot points to a covert, prolonged campaign by China to destabilise the US from within. Chang further warned that the plot is more than a stray biological smuggling case—it’s part of a broader “people’s war” strategy ingrained in Maoist doctrine to wear down and destabilise enemies politically, economically, and psychologically. “If we don’t defend ourselves with urgency and resolve, we’re going to get hit really hard. And not just with COVID, not just with fentanyl—but perhaps with something worse,” added Chang, who analyses activities of the Chinese Communist Party. “Xi Jinping talks about going to war all the time, and he is mobilising all of Chinese society to go to war. So we can lose our country, even though we are the far stronger nation because we are not defending ourselves with the vigour and the determination that is necessary.” “In May 2019, the state media People’s Daily, the most authoritative publication in China, carried a landmark editorial that declared a people’s war on us. We are Americans, so we think we are entitled to ignore the propaganda of hostile regimes. But for a communist party, that phrase has great resonance. What they are doing with their strident anti-Americanism is creating a justification to strike our country,” Chang said. “We have got to put this into context. In 2020, Americans in all 50 states received unsolicited seeds from China. I think that was an attempt to plant invasive species into the US. And then this year, Timu, the online Chinese retailer, sent seeds to Americans unsolicited," added Chang, the author of ‘China Is Going to War’. Chang has lived and worked in China and Hong Kong for almost two decades. The origin of the SARS-CoV-2 virus, which caused the COVID-19 pandemic, remains highly controversial, as some experts allege that it was engineered in a Chinese laboratory.

Gordon G Chang, an expert on Chinese affairs, warned that the plot is more than a stray biological smuggling case—it’s part of a broader “people’s war” strategy ingrained in Maoist doctrine to wear down and destabilise enemies politically, economically, and psychologically.

‘Sever ties with China’: Top expert warns of ‘something worse than COVID’ hitting US

US President Donald Trump on Friday (Jun 6) announced that a new round of trade talks with China will happen in London next week. This comes a day after Trump held “a very good” phone call with Chinese Premier Xi Jinping to discuss trade in a bid to end a bitter battle over tariffs.&nbsp;The upcoming talks will mark the second round of trade negotiations between the world’s two biggest economies since Trump unleashed a global trade war.&nbsp;In a post on Truth Social, the president said that US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer would meet the Chinese representatives in London on Monday (Jun 9).&nbsp;“I am pleased to announce that Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer, will be meeting in London on Monday, June 9, 2025, with Representatives of China, with reference to the Trade Deal,” Trump said.&nbsp;He added, “The meeting should go very well.”&nbsp;<h2>Trump-Xi Jinping call</h2>&nbsp;Following the phone call between Trump and Xi Jinping on Thursday (Jun 5), Trump wrote on Truth Social, “I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal. The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries. There should no longer be any questions respecting the complexity of Rare Earth products.”&nbsp;<h2>US-China trade tensions</h2>&nbsp;The first round of trade talks between Washington and Beijing was held in Geneva last month. While Trump imposed 10 per cent import duties on most trade allies of the United States, he targeted China with sweeping high tariffs when China refused to back down from the tariff battle.&nbsp;In April, Trump imposed additional 145 per cent tariffs on many Chinese products, to which China retaliated with countermeasures of 125 per cent, escalating the trade war between the countries.&nbsp;Following the negotiations last month, Washington and Beijing temporarily brought down tariffs, with the US bringing its trade levies to 30 per cent and China to 10 per cent. However, the temporary halt is expected to end in early August, and last week, Trump accused China of violating the pact.&nbsp;While Trump’s much-awaited call with Xi Jinping paved the way for high-level trade talks between the countries, a swift resolution to the tariff issue remains uncertain. &nbsp;

The upcoming talks will mark the second round of trade negotiations between the world’s two biggest economies since Trump unleashed a global trade war.

US President Donald Trump on Friday (Jun 6) announced that a new round of trade talks with China will happen in London next week. This comes a day after Trump held “a very good” phone call with Chinese Premier Xi Jinping to discuss trade in a bid to end a bitter battle over tariffs. The upcoming talks will mark the second round of trade negotiations between the world’s two biggest economies since Trump unleashed a global trade war. In a post on Truth Social, the president said that US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer would meet the Chinese representatives in London on Monday (Jun 9). “I am pleased to announce that Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer, will be meeting in London on Monday, June 9, 2025, with Representatives of China, with reference to the Trade Deal,” Trump said. He added, “The meeting should go very well.” Trump-Xi Jinping call Following the phone call between Trump and Xi Jinping on Thursday (Jun 5), Trump wrote on Truth Social, “I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal. The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries. There should no longer be any questions respecting the complexity of Rare Earth products.” US-China trade tensions The first round of trade talks between Washington and Beijing was held in Geneva last month. While Trump imposed 10 per cent import duties on most trade allies of the United States, he targeted China with sweeping high tariffs when China refused to back down from the tariff battle. In April, Trump imposed additional 145 per cent tariffs on many Chinese products, to which China retaliated with countermeasures of 125 per cent, escalating the trade war between the countries. Following the negotiations last month, Washington and Beijing temporarily brought down tariffs, with the US bringing its trade levies to 30 per cent and China to 10 per cent. However, the temporary halt is expected to end in early August, and last week, Trump accused China of violating the pact. While Trump’s much-awaited call with Xi Jinping paved the way for high-level trade talks between the countries, a swift resolution to the tariff issue remains uncertain.

The upcoming talks will mark the second round of trade negotiations between the world’s two biggest economies since Trump unleashed a global trade war.

‘Meeting should go very well’: Trump announces new round of US-China trade talks in London next week

China is intensifying efforts to tax citizens’ overseas income, expanding a campaign that once focused on the ultra-rich to now include less wealthy individuals.The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds, Bloomberg reported, citing people familiar with the matter.Tax officials are now scrutinising a wider range of offshore income, including investment returns, dividends, and employee stock options, Bloomberg said.These investment gains can be taxed at rates as high as 20 per cent. While last year’s campaign largely targeted individuals with assets exceeding $10 million, tax service providers are now seeing a surge in enquiries from clients with less than $1 million in assets.<h2>Broader surveillance as deficits soar</h2>The stepped-up enforcement comes as Chinese authorities seek to shore up revenue amid a weakening economy, rising stimulus spending, and diminishing local government income from land sales.According to Bloomberg calculations based on official data, China’s budget gap in the first four months of 2025 soared by more than 50 per cent year-on-year to over $360 billion—a record for the period.Total income in the central government’s two main fiscal accounts fell by 1.3 per cent from a year earlier, while expenditures surged by 7.2 per cent, exacerbating the deficit. Beijing’s stimulus measures, aimed at mitigating the impact of US tariffs and reviving domestic confidence, have increased pressure on the public coffers.Tax bureaus in cities such as Beijing and Shanghai, as well as provinces including Zhejiang, have issued public advisories urging residents to review and report their offshore income before the June 30 deadline for 2024 income declarations.According to Bloomberg, notices issued by the local governments show that they began coordinating enforcement efforts as early as March, after big data analysis revealed a number of residents had not reported overseas gains.In some cases publicised by tax authorities, individuals were asked to pay back overdue tax and penalties amounting to just over 127,000 yuan ($17,720), underscoring how enforcement is now reaching middle-income earners.<h2>Data sharing and the global tax net</h2>China’s latest tax push builds on its adoption of the Common Reporting Standard (CRS) in 2018—a global tax information-sharing framework developed by the OECD to combat tax evasion. Through CRS, China automatically receives data from nearly 150 jurisdictions regarding financial accounts held by Chinese residents abroad.While China’s tax laws have long mandated that residents declare and pay tax on worldwide income, enforcement had been lax until recent years. The shift coincides with President Xi Jinping’s “common prosperity” campaign, aimed at narrowing wealth gaps and increasing redistribution in the country.Amid domestic uncertainty, more Chinese investors have sought to move wealth abroad. Bloomberg data shows that mainland investors have funnelled over HK$658 billion ($83.9 billion) into Hong Kong-listed stocks via the cross-border trading link this year—more than double the outflows during the same period in 2024.Bloomberg Intelligence forecasts that personal investable assets in mainland China could soar to $80 trillion by 2030, with overseas investments rising to 11 per cent of household investable wealth, up from 8 per cent in 2023.As Beijing broadens its tax net and enhances surveillance of offshore wealth, analysts say middle-class Chinese investors with modest foreign holdings are increasingly likely to come under scrutiny. With the deadline looming and enforcement ramping up, the message from Chinese tax authorities is clear: no overseas income is too small to escape attention.

The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds.

China is intensifying efforts to tax citizens’ overseas income, expanding a campaign that once focused on the ultra-rich to now include less wealthy individuals. The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds, Bloomberg reported, citing people familiar with the matter. Tax officials are now scrutinising a wider range of offshore income, including investment returns, dividends, and employee stock options, Bloomberg said. These investment gains can be taxed at rates as high as 20 per cent. While last year’s campaign largely targeted individuals with assets exceeding $10 million, tax service providers are now seeing a surge in enquiries from clients with less than $1 million in assets. Broader surveillance as deficits soar The stepped-up enforcement comes as Chinese authorities seek to shore up revenue amid a weakening economy, rising stimulus spending, and diminishing local government income from land sales. According to Bloomberg calculations based on official data, China’s budget gap in the first four months of 2025 soared by more than 50 per cent year-on-year to over $360 billion—a record for the period. Total income in the central government’s two main fiscal accounts fell by 1.3 per cent from a year earlier, while expenditures surged by 7.2 per cent, exacerbating the deficit. Beijing’s stimulus measures, aimed at mitigating the impact of US tariffs and reviving domestic confidence, have increased pressure on the public coffers. Tax bureaus in cities such as Beijing and Shanghai, as well as provinces including Zhejiang, have issued public advisories urging residents to review and report their offshore income before the June 30 deadline for 2024 income declarations. According to Bloomberg, notices issued by the local governments show that they began coordinating enforcement efforts as early as March, after big data analysis revealed a number of residents had not reported overseas gains. In some cases publicised by tax authorities, individuals were asked to pay back overdue tax and penalties amounting to just over 127,000 yuan ($17,720), underscoring how enforcement is now reaching middle-income earners. Data sharing and the global tax net China’s latest tax push builds on its adoption of the Common Reporting Standard (CRS) in 2018—a global tax information-sharing framework developed by the OECD to combat tax evasion. Through CRS, China automatically receives data from nearly 150 jurisdictions regarding financial accounts held by Chinese residents abroad. While China’s tax laws have long mandated that residents declare and pay tax on worldwide income, enforcement had been lax until recent years. The shift coincides with President Xi Jinping’s “common prosperity” campaign, aimed at narrowing wealth gaps and increasing redistribution in the country. Amid domestic uncertainty, more Chinese investors have sought to move wealth abroad. Bloomberg data shows that mainland investors have funnelled over HK$658 billion ($83.9 billion) into Hong Kong-listed stocks via the cross-border trading link this year—more than double the outflows during the same period in 2024. Bloomberg Intelligence forecasts that personal investable assets in mainland China could soar to $80 trillion by 2030, with overseas investments rising to 11 per cent of household investable wealth, up from 8 per cent in 2023. As Beijing broadens its tax net and enhances surveillance of offshore wealth, analysts say middle-class Chinese investors with modest foreign holdings are increasingly likely to come under scrutiny. With the deadline looming and enforcement ramping up, the message from Chinese tax authorities is clear: no overseas income is too small to escape attention.

The broadened crackdown is part of Beijing’s attempt to boost fiscal revenue amid record budget deficits and economic headwinds.

China widens tax crackdown to middle-class overseas investors

US President Donald Trump is facing mounting criticism both at home and abroad over his tariff policies and ongoing trade war with China.<h2>Viral Chinese AI videos target Trump’s tariff strategy</h2>A new wave of AI-generated videos mocking Trump has gone viral on Chinese social media. According to a CNN report, one of the most talked-about clips features a robot called “Tariff” that chooses to self-destruct rather than carry out Trump’s trade orders.In another video, Trump is reimagined as an anime-inspired superhero wielding tariffs, a parody that has been widely shared across China-controlled digital platforms.Also read: <a href="https://www.wionews.com/world/-making-america-bankrupt-elon-musk-slams-trump-s-big-beautiful-bill-says-shame-on-those-who-voted-for-it-1748974609876">'Making America bankrupt’: Elon Musk slams Trump's 'big, beautiful' bill, says ‘shame on those who&nbsp;voted&nbsp;for&nbsp;it’</a>CNN’s report said the Chinese social media campaign has been running for months and includes previous AI-generated videos showing Trump and Vice President JD Vance “hard at work in factories.”“All untouched by Beijing’s army of online censors designed to push China’s narrative, the US is making a fool of itself and, more importantly, losing ground to China in the global trade war President Trump started,” Ripley reported.<h2>Humour meets politics: Democrats roll out taco truck protest</h2>While Chinese media trolls Trump online, the Democratic National Committee in the US took to the streets. Outside the Republican headquarters in Washington, DC, a taco truck branded with the slogan “Trump Always Chickens Out,” shortened to TACO, was parked in protest of Trump’s repeated threats and backtracking on tariff action.<h2>Trump calls Xi ‘tough’ as key trade call approaches</h2>On Truth Social, Trump posted about Chinese President Xi Jinping, describing him as “very tough and extremely hard to make a deal with.”“I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH,” Trump wrote on Wednesday, 4 June.Just days earlier, Trump had accused China of going back on a previous agreement meant to reduce tariffs and trade restrictions. According to White House press secretary Karoline Leavitt, Trump is expected to speak with Xi this week in an effort to resolve tensions following last month’s Geneva talks.<h2>US courts divided over Trump’s tariff powers</h2>Adding to the week’s drama, a US trade court recently ruled that Trump had overstepped his presidential powers when he imposed broad tariffs on Chinese and other foreign imports under emergency authority.However, less than a day later, a federal appeals court intervened and reinstated the tariffs, putting the earlier ruling on hold while the government’s appeal&nbsp;is&nbsp;reviewed.

While Chinese media trolls Trump online, the Democratic National Committee in the US took to the streets. Outside the Republican headquarters in Washington, DC, a taco truck branded with the slogan “Trump Always Chickens Out,” shortened to TACO

US President Donald Trump is facing mounting criticism both at home and abroad over his tariff policies and ongoing trade war with China. Viral Chinese AI videos target Trump’s tariff strategy A new wave of AI-generated videos mocking Trump has gone viral on Chinese social media. According to a CNN report, one of the most talked-about clips features a robot called “Tariff” that chooses to self-destruct rather than carry out Trump’s trade orders. In another video, Trump is reimagined as an anime-inspired superhero wielding tariffs, a parody that has been widely shared across China-controlled digital platforms. Also read: 'Making America bankrupt’: Elon Musk slams Trump's 'big, beautiful' bill, says ‘shame on those who voted for it’ CNN’s report said the Chinese social media campaign has been running for months and includes previous AI-generated videos showing Trump and Vice President JD Vance “hard at work in factories.” “All untouched by Beijing’s army of online censors designed to push China’s narrative, the US is making a fool of itself and, more importantly, losing ground to China in the global trade war President Trump started,” Ripley reported. Humour meets politics: Democrats roll out taco truck protest While Chinese media trolls Trump online, the Democratic National Committee in the US took to the streets. Outside the Republican headquarters in Washington, DC, a taco truck branded with the slogan “Trump Always Chickens Out,” shortened to TACO, was parked in protest of Trump’s repeated threats and backtracking on tariff action. Trump calls Xi ‘tough’ as key trade call approaches On Truth Social, Trump posted about Chinese President Xi Jinping, describing him as “very tough and extremely hard to make a deal with.” “I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH,” Trump wrote on Wednesday, 4 June. Just days earlier, Trump had accused China of going back on a previous agreement meant to reduce tariffs and trade restrictions. According to White House press secretary Karoline Leavitt, Trump is expected to speak with Xi this week in an effort to resolve tensions following last month’s Geneva talks. US courts divided over Trump’s tariff powers Adding to the week’s drama, a US trade court recently ruled that Trump had overstepped his presidential powers when he imposed broad tariffs on Chinese and other foreign imports under emergency authority. However, less than a day later, a federal appeals court intervened and reinstated the tariffs, putting the earlier ruling on hold while the government’s appeal is reviewed.

While Chinese media trolls Trump online, the Democratic National Committee in the US took to the streets. Outside the Republican headquarters in Washington, DC, a taco truck branded with the slogan “Trump Always Chickens Out,” shortened to TACO.

'US is making fool of itself': Trump trolled in China with AI videos as Democrats roll out 'Trump Always Chickens Out' truck in Capitol Hill

Alarm over China’s increasing control over critical minerals intensified on June 3 as both global automakers and US defence officials raised the stakes in the ongoing trade dispute with Beijing.The latest concerns were sparked by China’s sweeping restrictions on exports of rare earth alloys, mixtures, and magnets, which have triggered warnings of serious production delays and even shutdowns in key industries worldwide.German car manufacturers have now joined their US counterparts in sounding the alarm, noting that the curbs could cripple vehicle production, disrupt supply chains, and potentially rattle local economies.China’s decision in April to suspend exports of a broad range of critical minerals—including magnets, essential for building everything from electric vehicles to missiles—has upended the global supply chains that automakers, aerospace companies, and military contractors depend on. These export controls underscore China’s overwhelming dominance in the critical minerals market and are widely perceived as part of its strategy to leverage its position in the ongoing trade war with the United States.Warning about the bleak situation, Germany's automotive lobby head, Hildegard Mueller, told Reuters, “If the situation is not changed quickly, production delays and even production outages can no longer be ruled out.”The worries over these mineral export restrictions are not limited to the automotive sector. Semiconductor companies, defence contractors, and other industries reliant on rare earth magnets for their products have also voiced concern.With the export ban still in place, officials from various countries, including Japan, India, and the European Union (EU), have been urgently pushing for Beijing to lift the export restrictions.A business delegation from Japan will visit Beijing in early June to meet with the Ministry of Commerce over the curbs, and European diplomats from countries with big auto industries have also sought "emergency" meetings with Chinese officials in recent weeks, Reuters reported.<h2>Strategic leverage in trade war with the US</h2>China's rare earth dominance is a key bargaining chip in its ongoing trade standoff with the US, particularly under President Donald Trump’s administration. Trump’s aggressive tariffs and trade measures against China, including tariffs as high as 145 per cent placed earlier, have created an environment where Beijing can flex its muscle in ways that have reverberated across global supply chains.Reuters reported that according to Frank Fannon, a former US Assistant Secretary of State for Energy Resources,&nbsp;the disruptions should not come as a surprise to anyone who has been paying attention to the shifting global dynamics in mineral supply chains.“We have a production challenge (in the US), and we need to leverage our whole government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday,” Fannon said.In response to China’s move, US diplomats, automakers, and military executives have escalated their discussions with Beijing, scrambling to identify alternate sources for these critical materials. The most immediate concern revolves around rare earth magnets. The export controls have created a shortage of key materials, risking disruption to production as early as the end of this summer.China’s export halt has also raised the stakes for US defence contractors. The Pentagon's advanced weapon systems—such as F-35 fighter jets, naval ships, and missiles—are heavily dependent on rare earths and other critical minerals.<h2>US strategic vulnerability and the race for alternatives</h2>China mines 70 per cent of the world’s rare earth materials. Myanmar, Australia and the United States mine most of the rest. But China does the chemical processing for 90 per cent of the world’s rare earths because it refines all of its own ore and also practically all of Myanmar’s and nearly half of US production, and the Pentagon is particularly vulnerable to any disruptions in this supply chain.The Pentagon has long relied on China for its supply of critical minerals used in advanced weaponry, but the recent restrictions on exports of seven medium and heavy rare earth elements have exposed the vulnerabilities in US military readiness.China’s recent export controls on gallium, germanium, and other materials have also had a significant impact. These minerals are indispensable in manufacturing technologies used by the military, and their scarcity could hinder America’s ability to maintain its technological edge.Despite this, the US military is beginning to act to mitigate its dependence on China. The Pentagon has been investing heavily in building domestic supply chains for critical minerals. Since 2020, the US government has allocated more than $400 million to develop alternative sources, and the US company MP Materials has been awarded significant funding to help increase production at the Mountain Pass mine in California.However, experts caution that this is a slow process. The US still relies heavily on China for its refined critical minerals, with only one mine in the US producing rare earth elements, and even then, it only accounts for about 11 per cent of global production, according to Statista.As geopolitical tensions rise between the US and China, the rare earth mineral issue is poised to become an even more significant flashpoint. China has a long history of using rare earth exports as leverage in diplomatic disputes, including a brief but intense embargo on shipments to Japan in 2010 during a territorial disagreement.While US efforts to develop alternative sources of critical minerals continue, the global automotive and defence sectors remain on edge, fearing that Beijing’s strategic control over these materials will continue to disrupt industries vital to both economic growth and national security. The ongoing situation underscores the urgent need for the US to diversify its mineral supply chains and reduce reliance on China in the years ahead.&nbsp;(With inputs from agencies)

China’s decision in April to suspend exports of a broad range of critical minerals has upended the global supply chains that automakers, aerospace companies, and military contractors depend on.

Alarm over China’s increasing control over critical minerals intensified on June 3 as both global automakers and US defence officials raised the stakes in the ongoing trade dispute with Beijing. The latest concerns were sparked by China’s sweeping restrictions on exports of rare earth alloys, mixtures, and magnets, which have triggered warnings of serious production delays and even shutdowns in key industries worldwide. German car manufacturers have now joined their US counterparts in sounding the alarm, noting that the curbs could cripple vehicle production, disrupt supply chains, and potentially rattle local economies. China’s decision in April to suspend exports of a broad range of critical minerals—including magnets, essential for building everything from electric vehicles to missiles—has upended the global supply chains that automakers, aerospace companies, and military contractors depend on. These export controls underscore China’s overwhelming dominance in the critical minerals market and are widely perceived as part of its strategy to leverage its position in the ongoing trade war with the United States. Warning about the bleak situation, Germany's automotive lobby head, Hildegard Mueller, told Reuters, “If the situation is not changed quickly, production delays and even production outages can no longer be ruled out.” The worries over these mineral export restrictions are not limited to the automotive sector. Semiconductor companies, defence contractors, and other industries reliant on rare earth magnets for their products have also voiced concern. With the export ban still in place, officials from various countries, including Japan, India, and the European Union (EU), have been urgently pushing for Beijing to lift the export restrictions. A business delegation from Japan will visit Beijing in early June to meet with the Ministry of Commerce over the curbs, and European diplomats from countries with big auto industries have also sought "emergency" meetings with Chinese officials in recent weeks, Reuters reported. Strategic leverage in trade war with the US China's rare earth dominance is a key bargaining chip in its ongoing trade standoff with the US, particularly under President Donald Trump’s administration. Trump’s aggressive tariffs and trade measures against China, including tariffs as high as 145 per cent placed earlier, have created an environment where Beijing can flex its muscle in ways that have reverberated across global supply chains. Reuters reported that according to Frank Fannon, a former US Assistant Secretary of State for Energy Resources, the disruptions should not come as a surprise to anyone who has been paying attention to the shifting global dynamics in mineral supply chains. “We have a production challenge (in the US), and we need to leverage our whole government approach to secure resources and ramp up domestic capability as soon as possible. The time horizon to do this was yesterday,” Fannon said. In response to China’s move, US diplomats, automakers, and military executives have escalated their discussions with Beijing, scrambling to identify alternate sources for these critical materials. The most immediate concern revolves around rare earth magnets. The export controls have created a shortage of key materials, risking disruption to production as early as the end of this summer. China’s export halt has also raised the stakes for US defence contractors. The Pentagon's advanced weapon systems—such as F-35 fighter jets, naval ships, and missiles—are heavily dependent on rare earths and other critical minerals. US strategic vulnerability and the race for alternatives China mines 70 per cent of the world’s rare earth materials. Myanmar, Australia and the United States mine most of the rest. But China does the chemical processing for 90 per cent of the world’s rare earths because it refines all of its own ore and also practically all of Myanmar’s and nearly half of US production, and the Pentagon is particularly vulnerable to any disruptions in this supply chain. The Pentagon has long relied on China for its supply of critical minerals used in advanced weaponry, but the recent restrictions on exports of seven medium and heavy rare earth elements have exposed the vulnerabilities in US military readiness. China’s recent export controls on gallium, germanium, and other materials have also had a significant impact. These minerals are indispensable in manufacturing technologies used by the military, and their scarcity could hinder America’s ability to maintain its technological edge. Despite this, the US military is beginning to act to mitigate its dependence on China. The Pentagon has been investing heavily in building domestic supply chains for critical minerals. Since 2020, the US government has allocated more than $400 million to develop alternative sources, and the US company MP Materials has been awarded significant funding to help increase production at the Mountain Pass mine in California. However, experts caution that this is a slow process. The US still relies heavily on China for its refined critical minerals, with only one mine in the US producing rare earth elements, and even then, it only accounts for about 11 per cent of global production, according to Statista. As geopolitical tensions rise between the US and China, the rare earth mineral issue is poised to become an even more significant flashpoint. China has a long history of using rare earth exports as leverage in diplomatic disputes, including a brief but intense embargo on shipments to Japan in 2010 during a territorial disagreement. While US efforts to develop alternative sources of critical minerals continue, the global automotive and defence sectors remain on edge, fearing that Beijing’s strategic control over these materials will continue to disrupt industries vital to both economic growth and national security. The ongoing situation underscores the urgent need for the US to diversify its mineral supply chains and reduce reliance on China in the years ahead. (With inputs from agencies)

China’s decision in April to suspend exports of a broad range of critical minerals has upended the global supply chains that automakers, aerospace companies, and military contractors depend on.

US military and automakers raise alarms as China leverages rare earth trump card

Assam Chief Minister Himanta Biswa Sharma on Monday debunked Pakistan's threat of a hypothetical scenario, “What if China stops the water of Brahmaputra”, calling it another baseless "scare tactic". He said that Pakistan is "spinning another manufactured threat.This supposed theory was circulating on social media following India's suspension of the Indus Water Treaty of 1960. Notably, a senior aide to Pakistan Prime Minister Shehbaz Sharif, Rana Ihsaan Afzal, resonated with such claims by saying that China can also take action with the Brahmaputra. &nbsp;Himanta Biswa Sharma refuted all such claims. He said that the Brahmaputra is a river that grows when it flows through India, owing to Indian geography and topology. China contributes only 30-35 per cent of the water in the Brahmaputra. The rest of it is generated in India from rain and tributaries like Subansiri, Lohit, Kameng, Manas, Dhansiri, Jia-Bharali, Kopili and other rivers like Krishnai, Digaru, and Kulsi, which flow from Khasi, Garo, and Jaintia Hills. "The Brahmaputra is not a river India depends on upstream — it is a rain-fed Indian river system, strengthened after entering Indian territory," he said.He said that Pakistan should know this, that “even if China were to reduce water flow (unlikely as China has never threatened or indicated in any official forum), it may actually help India mitigate the annual floods in Assam, which displace lakhs and destroy livelihoods every year.”&nbsp;He further said Pakistan have exploited India for 74 years under the Indus water treaty, it now panics as India is exercising its sovereign rights.China has already constructed multiple dams in its 50 per cent catchment, eg on Yarlung Sangpo in Tibet, the Zangmu Dam and plans for a massive super dam near Arunachal Pradesh. However, they do not store or divert water.&nbsp; Moreover, India and China do not have a water sharing agreement; it has a hydrological data (water level, rainfall) sharing agreement, which China have previously suspended. The Memorandum of Understanding has expired in June 2023, since it is not a treaty, so it is non-binding; hence no such compulsion between the two nations. In an RTI enquiry Ministry of Jal Shakiti said China has not shared hydrological data on hydro structure since 2022.

Himanta Biswa Sharma debunked Pakistan's threat of China stopping the water of the Brahmaputra, calling it a manufactured threat.

Assam Chief Minister Himanta Biswa Sharma on Monday debunked Pakistan's threat of a hypothetical scenario, “What if China stops the water of Brahmaputra”, calling it another baseless "scare tactic". He said that Pakistan is "spinning another manufactured threat. This supposed theory was circulating on social media following India's suspension of the Indus Water Treaty of 1960. Notably, a senior aide to Pakistan Prime Minister Shehbaz Sharif, Rana Ihsaan Afzal, resonated with such claims by saying that China can also take action with the Brahmaputra. Himanta Biswa Sharma refuted all such claims. He said that the Brahmaputra is a river that grows when it flows through India, owing to Indian geography and topology. China contributes only 30-35 per cent of the water in the Brahmaputra. The rest of it is generated in India from rain and tributaries like Subansiri, Lohit, Kameng, Manas, Dhansiri, Jia-Bharali, Kopili and other rivers like Krishnai, Digaru, and Kulsi, which flow from Khasi, Garo, and Jaintia Hills. "The Brahmaputra is not a river India depends on upstream — it is a rain-fed Indian river system, strengthened after entering Indian territory," he said. He said that Pakistan should know this, that “even if China were to reduce water flow (unlikely as China has never threatened or indicated in any official forum), it may actually help India mitigate the annual floods in Assam, which displace lakhs and destroy livelihoods every year.” He further said Pakistan have exploited India for 74 years under the Indus water treaty, it now panics as India is exercising its sovereign rights. China has already constructed multiple dams in its 50 per cent catchment, eg on Yarlung Sangpo in Tibet, the Zangmu Dam and plans for a massive super dam near Arunachal Pradesh. However, they do not store or divert water. Moreover, India and China do not have a water sharing agreement; it has a hydrological data (water level, rainfall) sharing agreement, which China have previously suspended. The Memorandum of Understanding has expired in June 2023, since it is not a treaty, so it is non-binding; hence no such compulsion between the two nations. In an RTI enquiry Ministry of Jal Shakiti said China has not shared hydrological data on hydro structure since 2022.

Himanta Biswa Sharma debunked Pakistan's threat of China stopping the water of the Brahmaputra, calling it a manufactured threat.

Himanta Biswa Sharma debunks Pakistan's manufactured threat of “What if China stops the water of Brahmaputra”

Congress MP Shashi Tharoor criticised China for supporting Pakistan in removing a key terror reference at the United Nations Security Council (UNSC). He called out Beijing’s actions for helping shield the Lashkar-e-Taiba-supported ‘Resistance Front’ from being named in a press statement.Tharoor, who is part of an all-party Indian delegation currently visiting Brazil, expressed his concern during a discussion with Brazilian diplomat Ambassador Celso Amorim. He pointed out that India had repeatedly raised the Resistance Front with the UN Sanctions Committee, but China’s support to Pakistan blocked any reference to the group.Also read: <a href="https://www.wionews.com/pakistan/-sudden-decrease-in-river-chenab-pakistan-s-faces-water-crisis-as-indus-waters-treaty-remains-in-abeyance-after-pahalgam-terror-attack-1748886326305">'Sudden decrease in river Chenab': Pakistan faces water crisis as Indus Waters Treaty remains in abeyance after Pahalgam terror attack</a>“We have been reporting about RF to UN Sanctions Committee, time after time and when India encouraged our friends on the Security Council to mention the Resistance Front in the press statement that the Security Council issued,” he said.“Pakistan government, I am sorry to say that with the support of your friend in China, took out the name, so there is not even a reference,” Tharoor added.<h2>A pointed dig at both Pakistan and China</h2>Taking a clear swipe at both Islamabad and Beijing, Tharoor said, “We are not on the Security Council, and neither are you. We have to change that situation. Both of us should be on the Council together.”His comments underline the difficulties India faces in addressing cross-border terrorism, particularly when major powers within the UNSC use their influence to shield certain actors.The Indian MPs’ delegation in Brazil was welcomed at the airport in Brasilia by Sandeep Kumar Kujur, Charge d’Affaires of the Indian Embassy.<h2>Tharoor reacts to Colorado terror attack</h2>In a separate post on X, Shashi Tharoor expressed concern over the recent terror attack in Boulder, Colorado. “Members of the Indian MPs’ delegation learnt with concern about the terror attack in Colorado and were relieved that there was no loss of life,” he said.

Taking a clear swipe at both Islamabad and Beijing, Tharoor said, “We are not on the Security Council, and neither are you. We have to change that situation. Both of us should be on the Council together.”

Congress MP Shashi Tharoor criticised China for supporting Pakistan in removing a key terror reference at the United Nations Security Council (UNSC). He called out Beijing’s actions for helping shield the Lashkar-e-Taiba-supported ‘Resistance Front’ from being named in a press statement. Tharoor, who is part of an all-party Indian delegation currently visiting Brazil, expressed his concern during a discussion with Brazilian diplomat Ambassador Celso Amorim. He pointed out that India had repeatedly raised the Resistance Front with the UN Sanctions Committee, but China’s support to Pakistan blocked any reference to the group. Also read: 'Sudden decrease in river Chenab': Pakistan faces water crisis as Indus Waters Treaty remains in abeyance after Pahalgam terror attack “We have been reporting about RF to UN Sanctions Committee, time after time and when India encouraged our friends on the Security Council to mention the Resistance Front in the press statement that the Security Council issued,” he said. “Pakistan government, I am sorry to say that with the support of your friend in China, took out the name, so there is not even a reference,” Tharoor added. A pointed dig at both Pakistan and China Taking a clear swipe at both Islamabad and Beijing, Tharoor said, “We are not on the Security Council, and neither are you. We have to change that situation. Both of us should be on the Council together.” His comments underline the difficulties India faces in addressing cross-border terrorism, particularly when major powers within the UNSC use their influence to shield certain actors. The Indian MPs’ delegation in Brazil was welcomed at the airport in Brasilia by Sandeep Kumar Kujur, Charge d’Affaires of the Indian Embassy. Tharoor reacts to Colorado terror attack In a separate post on X, Shashi Tharoor expressed concern over the recent terror attack in Boulder, Colorado. “Members of the Indian MPs’ delegation learnt with concern about the terror attack in Colorado and were relieved that there was no loss of life,” he said.

Taking a clear swipe at both Islamabad and Beijing, Tharoor said, “We are not on the Security Council, and neither are you. We have to change that situation. Both of us should be on the Council together.”

'Support of your friend in China...': Shashi Tharoor slams Pakistan, China for shielding LeT-backed terror group ‘Resistance Front’ at UNSC

Tensions between the United States and China have escalated once again as Beijing accuses Washington of breaching a recent trade agreement.&nbsp;The Chinese Ministry of Commerce issued a statement condemning the US’s actions, signalling a potential setback in ongoing efforts to stabilise bilateral trade relations.<h2>China’s accusation</h2>According to a report by Bloomberg, China has accused the United States of “seriously violating” the trade truce established in Geneva in May 2025.&nbsp;The Chinese Ministry of Commerce criticised the US for introducing new trade and technology restrictions, including export controls on artificial intelligence (AI) chips, curbs on chip design software sales to China, and the revocation of Chinese student visas. &nbsp;Beijing said these actions undermined the consensus reached between President Donald Trump and President Xi Jinping during their last conversation in January. &nbsp;“If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,” the ministry stated, as quoted by Bloomberg.&nbsp;The ministry further stated it “resolutely rejects these unjustified accusations” and insisted that China has strictly implemented the Geneva consensus.<h2>China-US trade truce under pressure</h2>The US-China trade relationship has remained turbulent in recent years. In early 2025, President Trump imposed a sweeping 145 per cent tariff on Chinese imports, citing trade imbalances and national security concerns. &nbsp;China responded with retaliatory tariffs of up to 125 per cent on US goods. &nbsp;A temporary easing of tensions came in May, when both countries agreed to scale back certain tariffs during talks in Geneva.&nbsp;However, Washington’s latest actions—including export bans, software curbs, and visa restrictions—have sparked renewed conflict.&nbsp;Last week, the Trump administration said it planned to start revoking visas for Chinese students, while moving to restrict sales of chip design software to China.&nbsp;According to the New York Times, the US has also barred exports of critical jet engine parts and aviation technology to China.&nbsp;Although Trump did not provide specifics when accusing Beijing of violating the trade truce on Friday, US Trade Representative Jamieson Greer said China had failed to accelerate exports of critical minerals used in advanced electronics, as per Bloomberg . &nbsp;According to Bloomberg, the US Treasury Secretary Scott Bessent confirmed that trade talks had stalled and hinted that a direct call between Trump and Xi might be necessary to break the deadlock.&nbsp;Trump has recently reportedly voiced dissatisfaction with Beijing’s pace in fulfilling agreed commitments, particularly in boosting exports of critical minerals essential to the US tech and defence sectors.<h2>Impact on the Chinese Economy</h2>The ongoing trade tensions have had a tangible impact on China’s economy.&nbsp;&nbsp;Despite setting an ambitious GDP growth target of around 5% for 2025, analysts reportedly remain skeptical about China’s ability to achieve this goal amid external pressures.&nbsp; &nbsp;The International Monetary Fund (IMF) projects China’s economy will grow by 4.6% in 2025, down from 5% in 2024.&nbsp;Furthermore, China’s fiscal deficit target for 2025 has been set at approximately 4% of GDP, the highest level in over three decades, indicating increased public spending to support growth, according to Reuters.&nbsp;The Economist Intelligence Unit anticipates a 20% reduction in China’s exports to the U.S. over 2025-27, with the majority of the impact being felt in 2026.&nbsp;&nbsp;This contraction is expected to reduce GDP growth by 0.6 percentage points over the same period.<h2>What lies ahead?</h2>As both countries harden their trade stances, the path forward remains uncertain.&nbsp;The risk of further escalation is real, but diplomatic backchannels could still pave the way for renewed dialogue between Trump and Xi.&nbsp;With global markets, supply chains, and developing economies exposed to fallout from any US-China fallout, the world is closely watching how the next chapter of this economic standoff unfolds.&nbsp;

Citing a possible setback in the stabilization of bilateral economic relations, the Chinese Ministry of Commerce denounced the US actions. 

Tensions between the United States and China have escalated once again as Beijing accuses Washington of breaching a recent trade agreement. The Chinese Ministry of Commerce issued a statement condemning the US’s actions, signalling a potential setback in ongoing efforts to stabilise bilateral trade relations. China’s accusation According to a report by Bloomberg, China has accused the United States of “seriously violating” the trade truce established in Geneva in May 2025. The Chinese Ministry of Commerce criticised the US for introducing new trade and technology restrictions, including export controls on artificial intelligence (AI) chips, curbs on chip design software sales to China, and the revocation of Chinese student visas. Beijing said these actions undermined the consensus reached between President Donald Trump and President Xi Jinping during their last conversation in January. “If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,” the ministry stated, as quoted by Bloomberg. The ministry further stated it “resolutely rejects these unjustified accusations” and insisted that China has strictly implemented the Geneva consensus. China-US trade truce under pressure The US-China trade relationship has remained turbulent in recent years. In early 2025, President Trump imposed a sweeping 145 per cent tariff on Chinese imports, citing trade imbalances and national security concerns. China responded with retaliatory tariffs of up to 125 per cent on US goods. A temporary easing of tensions came in May, when both countries agreed to scale back certain tariffs during talks in Geneva. However, Washington’s latest actions—including export bans, software curbs, and visa restrictions—have sparked renewed conflict. Last week, the Trump administration said it planned to start revoking visas for Chinese students, while moving to restrict sales of chip design software to China. According to the New York Times, the US has also barred exports of critical jet engine parts and aviation technology to China. Although Trump did not provide specifics when accusing Beijing of violating the trade truce on Friday, US Trade Representative Jamieson Greer said China had failed to accelerate exports of critical minerals used in advanced electronics, as per Bloomberg . According to Bloomberg, the US Treasury Secretary Scott Bessent confirmed that trade talks had stalled and hinted that a direct call between Trump and Xi might be necessary to break the deadlock. Trump has recently reportedly voiced dissatisfaction with Beijing’s pace in fulfilling agreed commitments, particularly in boosting exports of critical minerals essential to the US tech and defence sectors. Impact on the Chinese Economy The ongoing trade tensions have had a tangible impact on China’s economy. Despite setting an ambitious GDP growth target of around 5% for 2025, analysts reportedly remain skeptical about China’s ability to achieve this goal amid external pressures. The International Monetary Fund (IMF) projects China’s economy will grow by 4.6% in 2025, down from 5% in 2024. Furthermore, China’s fiscal deficit target for 2025 has been set at approximately 4% of GDP, the highest level in over three decades, indicating increased public spending to support growth, according to Reuters. The Economist Intelligence Unit anticipates a 20% reduction in China’s exports to the U.S. over 2025-27, with the majority of the impact being felt in 2026. This contraction is expected to reduce GDP growth by 0.6 percentage points over the same period. What lies ahead? As both countries harden their trade stances, the path forward remains uncertain. The risk of further escalation is real, but diplomatic backchannels could still pave the way for renewed dialogue between Trump and Xi. With global markets, supply chains, and developing economies exposed to fallout from any US-China fallout, the world is closely watching how the next chapter of this economic standoff unfolds.

As Beijing accuses Washington of breaking a trade agreement, tensions between the US and China have increased.&nbsp;

US-China trade tensions flare as Beijing accuses Washington of breaching deal

When Washington announced its ambitious Golden Dome plan worth $175 billion, it raised alarms in Moscow, Beijing and Pyongyang. Russia and China have described the move as 'deeply destabilising' in nature.At a press conference, Zhang Xiaogang, spokesperson for China's Ministry of National Defence, warned, “The U.S. actions will once again open the Pandora's box”.&nbsp;The term Golden Dome is derived from a massive biblical concept of divine protection, and it is designed to shield the United States from threats incoming from land, air, and sea. It is a technological artefact that holds the power to redefine modern warfare. It is also similar to Israel's Iron Dome, only larger in scale. This risks escalating tension in space, and while setting a precedent for other nations to develop their space-based program. This might also encourage other countries to develop sophisticated missiles to overcome the defences of the Golden Dome. Moreover, the effectiveness of missile interception might prompt the US to engage less in diplomatic talks and embolden it to follow riskier military operations.&nbsp;The Russian foreign affairs spokesperson said the development “violates the spirit” of the 1967 Outer Space Treaty, an agreement that was supposed to protect the militarisation of space by prohibiting the deployment of weapons of mass destruction in space.&nbsp;Article IV of the treaty states, "Parties to the Treaty undertake not to place in orbit around the Earth any objects carrying nuclear weapons or any other kinds of weapons of mass destruction..."&nbsp;The treaty leaves scope for the peaceful utilisation of space. Hence, it does not implicitly forbid the installation of a defence system or satellites in orbit or technology that might use directed energy or laser weapons. But the defensive and offensive potential of technological artefacts in space is blurry, leaving a legal and strategic gray area and raising ethical questions.<h2>Technological artefacts and the politics they embody</h2>'Do artefacts have politics?' Philosopher Langdon Winner did not pose this as a rhetorical question, he posed this to challenge the neutrality of technology. He argued that the technologies of any society reflect values, power structures and ambitions of those who built them.&nbsp;The United States denied any implications that the project would militarise space, they said, “All we care about is protecting the homeland”. They have cited strategic defence from China's hypersonic glide vehicles and North Korea's Intercontinental Ballistic Missiles.&nbsp;Technological artefacts like the Golden Dome seem mostly strategic and technical. But technology often moves faster than diplomacy. These weapons, whether offensive or defensive, embody a politics of their own, irrespective of the anarchy in international affairs. This politics can be either by design of the technology or by the consequences of its utility.&nbsp;According to Winner, “to recognise the political dimensions in the shapes of technology does not require that we look for conscious conspiracies or malicious intentions”. For example, nuclear technology by design is centralised and requires sophisticated facilities and control that is exclusive to authority and power. On the other hand, solar technology is democratic; it can be used and harnessed by individuals at a micro scale.&nbsp;Golden Dome is far from just a defensive shield; it embodies the expansionist ambitions of our society. It initiates an arms race between superpowers like the US, Russia, China, North Korea and many more. The fate of the 1967 Outer Space Treaty is hanging by a thread. This might just be the initiation of a new era of military competition that extends beyond Earth's atmosphere.&nbsp;&nbsp;

The US Golden Dome plan raises global alarm, risking space militarization and challenging the 1967 Outer Space Treaty’s relevance.

When Washington announced its ambitious Golden Dome plan worth $175 billion, it raised alarms in Moscow, Beijing and Pyongyang. Russia and China have described the move as 'deeply destabilising' in nature. At a press conference, Zhang Xiaogang, spokesperson for China's Ministry of National Defence, warned, “The U.S. actions will once again open the Pandora's box”. The term Golden Dome is derived from a massive biblical concept of divine protection, and it is designed to shield the United States from threats incoming from land, air, and sea. It is a technological artefact that holds the power to redefine modern warfare. It is also similar to Israel's Iron Dome, only larger in scale. This risks escalating tension in space, and while setting a precedent for other nations to develop their space-based program. This might also encourage other countries to develop sophisticated missiles to overcome the defences of the Golden Dome. Moreover, the effectiveness of missile interception might prompt the US to engage less in diplomatic talks and embolden it to follow riskier military operations. The Russian foreign affairs spokesperson said the development “violates the spirit” of the 1967 Outer Space Treaty, an agreement that was supposed to protect the militarisation of space by prohibiting the deployment of weapons of mass destruction in space. Article IV of the treaty states, "Parties to the Treaty undertake not to place in orbit around the Earth any objects carrying nuclear weapons or any other kinds of weapons of mass destruction..." The treaty leaves scope for the peaceful utilisation of space. Hence, it does not implicitly forbid the installation of a defence system or satellites in orbit or technology that might use directed energy or laser weapons. But the defensive and offensive potential of technological artefacts in space is blurry, leaving a legal and strategic gray area and raising ethical questions. Technological artefacts and the politics they embody 'Do artefacts have politics?' Philosopher Langdon Winner did not pose this as a rhetorical question, he posed this to challenge the neutrality of technology. He argued that the technologies of any society reflect values, power structures and ambitions of those who built them. The United States denied any implications that the project would militarise space, they said, “All we care about is protecting the homeland”. They have cited strategic defence from China's hypersonic glide vehicles and North Korea's Intercontinental Ballistic Missiles. Technological artefacts like the Golden Dome seem mostly strategic and technical. But technology often moves faster than diplomacy. These weapons, whether offensive or defensive, embody a politics of their own, irrespective of the anarchy in international affairs. This politics can be either by design of the technology or by the consequences of its utility. According to Winner, “to recognise the political dimensions in the shapes of technology does not require that we look for conscious conspiracies or malicious intentions”. For example, nuclear technology by design is centralised and requires sophisticated facilities and control that is exclusive to authority and power. On the other hand, solar technology is democratic; it can be used and harnessed by individuals at a micro scale. Golden Dome is far from just a defensive shield; it embodies the expansionist ambitions of our society. It initiates an arms race between superpowers like the US, Russia, China, North Korea and many more. The fate of the 1967 Outer Space Treaty is hanging by a thread. This might just be the initiation of a new era of military competition that extends beyond Earth's atmosphere.

The US Golden Dome plan raises global alarm, risking space militarisation and challenging the 1967 Outer Space Treaty’s relevance.&nbsp;

US Golden Dome: Prelude to a new arms race

India has strongly pushed back against Pakistan’s claims that it violated the Indus Waters Treaty, accusing its neighbour of using terrorism to interfere with the agreement’s proper functioning.&nbsp;Tensions flared between the United States and China on Saturday after US Secretary of Defence Pete Hegseth claimed that Beijing is “credibly preparing” to use military force in Asia.&nbsp;The foreign ministers of five Arab countries who had planned to visit the occupied West Bank this weekend, on Saturday, condemned Israel's decision to block their plans.&nbsp;&nbsp;Click on the headlines to read more&nbsp;&nbsp;<a href="https://www.wionews.com/india-news/-don-t-shift-the-blame-india-slams-pakistan-over-indus-waters-treaty-says-terror-not-water-is-the-real-issue-1748699239228">‘Don’t shift the blame’: India slams Pakistan over Indus Waters Treaty, says terror, not water, is the real issue</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748699492878.png?rect=(0,240,1440,1080)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="‘Don’t shift the blame’: India slams Pakistan over Indus Waters Treaty, says terror, not water, is the real issue"></figure>India has strongly pushed back against Pakistan’s claims that it violated the Indus Waters Treaty, accusing its neighbour of using terrorism to interfere with the agreement’s proper functioning.Speaking at the United Nations conference on glaciers in Dushanbe, Tajikistan, Minister of State for Environment Kirti Vardhan Singh said Pakistan’s accusations were baseless and politically motivated.&nbsp;<a href="https://www.wionews.com/world/us-defence-chief-pete-hegseth-claims-china-preparing-for-war-in-asia-beijing-calls-it-instigation-1748706919171">'Steeped in provocations': US defence chief Pete Hegseth claims China preparing for war in Asia, Beijing calls it ‘instigation’</a> <img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748707057497.png?rect=(0,240,1440,1080)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="'Steeped in provocations': US defence chief Pete Hegseth claims China preparing for war in Asia, Beijing calls it ‘instigation’">&nbsp;Tensions flared between the United States and China on Saturday after US Secretary of Defense Pete Hegseth claimed that Beijing is “credibly preparing” to use military force in Asia. His remarks at a high-profile security summit in Singapore drew sharp criticism from China’s embassy, which dismissed the speech as “steeped in provocations and instigation”.&nbsp;'<a href="https://www.wionews.com/world/-will-not-cooperate-israel-blocks-arab-ministers-planned-west-bank-visit-arab-countries-condemn-ban-1748695388726">Will not cooperate': Israel blocks Arab ministers planned visit to West Bank; Arab countries condemn ban</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748697683474.png?rect=(0,0,1200,900)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="'Will not cooperate': Israel blocks Arab ministers planned visit to West Bank; Arab countries condemn ban"></figure>&nbsp;The foreign ministers of five Arab countries who had planned to visit the occupied West Bank this weekend on Saturday condemned Israel's decision to block their plans. The ministers condemned "Israel's decision to ban the delegation's visit to Ramallah (on Sunday) to meet with the president of the State of Palestine, Mahmud Abbas", the Jordanian foreign ministry said.&nbsp;<a href="https://www.wionews.com/world/turkish-pesident-erdogan-rewriting-constitution-to-be-president-for-life-here-s-what-we-know-1748688679970">Turkey's Erdogan rewriting constitution to be president for life? Here's what we know</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748692618720.jpeg?rect=(0,375,2123,1589)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="Turkey's Erdogan rewriting constitution to be president for life? Here's what we know"></figure>Turkish President Recep Tayyip Erdogan recently appointed a team of legal experts to draft a new constitution amid reports suggesting that this might be his attempt to be president for life. Justifying the necessity of a new constitution, Erdogan stated that the current document stands "outdated" and has "elements of military influence" from the 1980 coup&nbsp;<a href="https://www.wionews.com/india-news/debris-from-msc-elsa3-shipwreck-off-kerala-coast-reaches-tamil-nadu-shores-1748705870997">Debris from MSC ELSA3 shipwreck off Kerala coast reaches Tamil Nadu shores</a>&nbsp;<a href="https://www.wionews.com/india-news/operation-sindoor-cds-gen-chauhan-says-15-of-army-s-time-spent-countering-misinformation-1748692303974">Operation Sindoor: CDS Gen Chauhan says 15% of Army’s time spent countering misinformation</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748693348239.jpg?rect=(0,70,1396,1046)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="Operation Sindoor: CDS Gen Chauhan says 15% of Army’s time spent countering misinformation"></figure>The Chief of Defence Staff (CDS), General Anil Chauhan, has revealed that approximately 15% of armed forces’ time during Operation Sindoor went into countering fake news and misleading narratives, and added that the way wars are fought has changed and modern warfare depends on technology, cyber operations, and the ability to control information.&nbsp;<a href="https://www.wionews.com/world/iran-upped-enriched-uranium-production-amid-ongoing-nuclear-talks-with-us-iaea-1748707893730">Iran upped enriched uranium production amid ongoing nuclear talks with US: IAEA</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748708314139.jpg?rect=(0,142,1077,808)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="Iran upped enriched uranium production amid ongoing nuclear talks with US: IAEA"></figure>The International Atomic Energy Agency (IAEA), the UN nuclear watchdog, has revealed in its latest report that Iran has increased its production of enriched uranium in the recent months and produced highly enriched uranium during its ongoing nuclear negotiations with the United States, multiple news agencies reported, citing the confidential report, on Saturday.<a href="https://www.wionews.com/world/europe-prepares-for-ukraine-support-without-us-as-trump-may-abandon-mediator-role-1748686040222">Europe prepares for Ukraine support without US as Trump may abandon mediator role</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748691485121.jpg?rect=(0,451,7122,5341)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="Europe prepares for Ukraine support without US as Trump may abandon mediator role"></figure>British and French officials are considering situations where Trump might abandon the role of the mediator in the ongoing Russia-Ukraine conflict. The “Coalition of the Willing” is developing plans to support Ukraine if the scenario arises.<a href="https://www.wionews.com/business-economy/opec-eyes-fresh-oil-output-hike-what-it-means-for-global-energy-markets-1748695330119">OPEC+ eyes fresh oil output hike: What it means for global energy markets</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748695558759.jpg?rect=(0,0,4979,3726)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="OPEC+ eyes fresh oil output hike: What it means for global energy markets"></figure>In a move that could reshape the global oil landscape yet again, OPEC+ is considering increasing its crude output by over 411,000 barrels per day (bpd) in July, as per sources cited by Reuters. This comes amid rising internal tensions within the group and growing geopolitical pressures, particularly from overproducing members such as Kazakhstan.<a href="https://www.wionews.com/entertainment/hybe-insider-trading-scandal-ador-executive-resigns-after-authorities-initiate-probe-over-illicit-profits-1748684328888">HYBE insider trading scandal: ADOR Executive resigns after authorities initiate probe over illicit profits</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748694043435.jpg?rect=(0,160,960,720)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="HYBE insider trading scandal: ADOR Executive resigns after authorities initiate probe over illicit profits"></figure>South Korean multinational entertainment company is grabbing headlines for all the wrong reasons. The company has landed in legal soup after they have allegedly been accused of illegal financial activities. There are reports that after the authorities have begun initiating a probe, an executive from ADOR has resigned, which has raised eyebrows.&nbsp;<a href="https://www.wionews.com/sports/tennis-french-open-2025-alexander-zverev-cruises-into-fourth-round-jannik-sinner-eases-past-jiri-lehecka-1748702842281">French Open 2025: Alexander Zverev cruises into fourth round; Jannik Sinner eases past Jiri Lehecka</a><figure class="image"><img src="https://cdn1.wionews.com/prod/wion/images/2025/20250531/image-1748704385715.png?rect=(0,0,1200,900)&amp;w=752&amp;h=564&amp;format=webp&amp;quality=medium" alt="French Open 2025: Alexander Zverev cruises into fourth round; Jannik Sinner eases past Jiri Lehecka"></figure>Former Olympic champion Alexander Zverev cruised into the second week of the ongoing French Open 2025 after he got the better of Italian Flavio Cobolli. Playing on Saturday (May 31), Zverev took a major step towards his maiden Grand Slam title as he won 6-2, 7-6, 6-1 to book a fourth-round berth. On the other hand, Australian Open champion Jannik Sinner got the better of Jiri Lehecka to move into the Round of 16.&nbsp;

Here are the top 10 stories from across the world.

India has strongly pushed back against Pakistan’s claims that it violated the Indus Waters Treaty, accusing its neighbour of using terrorism to interfere with the agreement’s proper functioning. Tensions flared between the United States and China on Saturday after US Secretary of Defence Pete Hegseth claimed that Beijing is “credibly preparing” to use military force in Asia. The foreign ministers of five Arab countries who had planned to visit the occupied West Bank this weekend, on Saturday, condemned Israel's decision to block their plans. Click on the headlines to read more ‘Don’t shift the blame’: India slams Pakistan over Indus Waters Treaty, says terror, not water, is the real issue India has strongly pushed back against Pakistan’s claims that it violated the Indus Waters Treaty, accusing its neighbour of using terrorism to interfere with the agreement’s proper functioning. Speaking at the United Nations conference on glaciers in Dushanbe, Tajikistan, Minister of State for Environment Kirti Vardhan Singh said Pakistan’s accusations were baseless and politically motivated. 'Steeped in provocations': US defence chief Pete Hegseth claims China preparing for war in Asia, Beijing calls it ‘instigation’ Tensions flared between the United States and China on Saturday after US Secretary of Defense Pete Hegseth claimed that Beijing is “credibly preparing” to use military force in Asia. His remarks at a high-profile security summit in Singapore drew sharp criticism from China’s embassy, which dismissed the speech as “steeped in provocations and instigation”. 'Will not cooperate': Israel blocks Arab ministers planned visit to West Bank; Arab countries condemn ban The foreign ministers of five Arab countries who had planned to visit the occupied West Bank this weekend on Saturday condemned Israel's decision to block their plans. The ministers condemned "Israel's decision to ban the delegation's visit to Ramallah (on Sunday) to meet with the president of the State of Palestine, Mahmud Abbas", the Jordanian foreign ministry said. Turkey's Erdogan rewriting constitution to be president for life? Here's what we know Turkish President Recep Tayyip Erdogan recently appointed a team of legal experts to draft a new constitution amid reports suggesting that this might be his attempt to be president for life. Justifying the necessity of a new constitution, Erdogan stated that the current document stands "outdated" and has "elements of military influence" from the 1980 coup Debris from MSC ELSA3 shipwreck off Kerala coast reaches Tamil Nadu shores Operation Sindoor: CDS Gen Chauhan says 15% of Army’s time spent countering misinformation The Chief of Defence Staff (CDS), General Anil Chauhan, has revealed that approximately 15% of armed forces’ time during Operation Sindoor went into countering fake news and misleading narratives, and added that the way wars are fought has changed and modern warfare depends on technology, cyber operations, and the ability to control information. Iran upped enriched uranium production amid ongoing nuclear talks with US: IAEA The International Atomic Energy Agency (IAEA), the UN nuclear watchdog, has revealed in its latest report that Iran has increased its production of enriched uranium in the recent months and produced highly enriched uranium during its ongoing nuclear negotiations with the United States, multiple news agencies reported, citing the confidential report, on Saturday. Europe prepares for Ukraine support without US as Trump may abandon mediator role British and French officials are considering situations where Trump might abandon the role of the mediator in the ongoing Russia-Ukraine conflict. The “Coalition of the Willing” is developing plans to support Ukraine if the scenario arises. OPEC+ eyes fresh oil output hike: What it means for global energy markets In a move that could reshape the global oil landscape yet again, OPEC+ is considering increasing its crude output by over 411,000 barrels per day (bpd) in July, as per sources cited by Reuters. This comes amid rising internal tensions within the group and growing geopolitical pressures, particularly from overproducing members such as Kazakhstan. HYBE insider trading scandal: ADOR Executive resigns after authorities initiate probe over illicit profits South Korean multinational entertainment company is grabbing headlines for all the wrong reasons. The company has landed in legal soup after they have allegedly been accused of illegal financial activities. There are reports that after the authorities have begun initiating a probe, an executive from ADOR has resigned, which has raised eyebrows. French Open 2025: Alexander Zverev cruises into fourth round; Jannik Sinner eases past Jiri Lehecka Former Olympic champion Alexander Zverev cruised into the second week of the ongoing French Open 2025 after he got the better of Italian Flavio Cobolli. Playing on Saturday (May 31), Zverev took a major step towards his maiden Grand Slam title as he won 6-2, 7-6, 6-1 to book a fourth-round berth. On the other hand, Australian Open champion Jannik Sinner got the better of Jiri Lehecka to move into the Round of 16.

Here are the top 10 stories from across the world.

Top 10 world news: India slams Pak over Indus Water Treaty; China preparing for war in Asia, claims US and more

Tensions flared between the United States and China on Saturday after US Secretary of Defense Pete Hegseth claimed that Beijing is “credibly preparing” to use military force in Asia. His remarks at a high-profile security summit in Singapore drew sharp criticism from China’s embassy, which dismissed the speech as “steeped in provocations and instigation”.<h2>‘The threat is real and could be imminent’</h2>Speaking at the annual Shangri-La Dialogue in Singapore, Hegseth told defence leaders from across the Indo-Pacific that China poses a growing military threat.“There’s no reason to sugarcoat it. The threat China poses is real, and it could be imminent,” he said. He also warned that any Chinese action against Taiwan would have “devastating consequences for the Indo-Pacific and the world.”Hegseth made it clear that while the US does not seek conflict, it will not back down. “We do not seek conflict with communist China… But we will not be pushed out of this critical region, and we will not let our allies and partners be subordinated and intimidated.”<h2>Beijing absent as Washington seizes the moment</h2>China chose not to send its defence minister to the gathering and was instead represented by an academic delegation. Hegseth used the opportunity to position Washington as a reliable partner in the Indo-Pacific.“Here in the Indo-Pacific, our futures are bound together,” he said. “We share your vision of peace and stability, of prosperity and security. And we are here to stay,” he added.Taking a dig at Beijing’s absence, he added, “We are here this morning, somebody else isn’t.”<h2>US calls for stronger defence ties in the region</h2>Hegseth assured regional allies of American support but also urged them to contribute more to collective defence. “We ask, and indeed we insist, that our allies and partners do their part on defence,” he said. “Sometimes that means having uncomfortable and tough conversations.”His remarks come at a time of growing concern among regional nations about the balance of power between the US and China, especially as Beijing expands its military presence across the Indo-Pacific.<h2>China accuses US of provoking conflict</h2>In response, China’s embassy in Singapore strongly criticised Hegseth’s address, calling it inflammatory and unnecessary. “The speech by the US defence chief is steeped in provocations and instigation,” the embassy said in a statement.China has not openly threatened war but has steadily increased its military and naval strength in the region. It has built artificial islands equipped with military facilities in disputed waters and now commands a navy with more vessels than that of the US.<h2>Summit highlights growing US-China divide</h2>The Shangri-La Dialogue, hosted by the International Institute for Strategic Studies, is a key platform for defence leaders from across the globe. Hegseth used the forum to outline the Trump administration’s firm stance on the Indo-Pacific, underlining Washington’s commitment to counter Beijing’s growing influence.He painted China as a rising military force bent on reshaping the regional order, warning that “Beijing is credibly preparing to potentially use military force to alter the balance of power in the Indo-Pacific.”

China chose not to send its defence minister to the gathering and was instead represented by an academic delegation. Hegseth used the opportunity to position Washington as a reliable partner in the Indo-Pacific.

Tensions flared between the United States and China on Saturday after US Secretary of Defense Pete Hegseth claimed that Beijing is “credibly preparing” to use military force in Asia. His remarks at a high-profile security summit in Singapore drew sharp criticism from China’s embassy, which dismissed the speech as “steeped in provocations and instigation”. ‘The threat is real and could be imminent’ Speaking at the annual Shangri-La Dialogue in Singapore, Hegseth told defence leaders from across the Indo-Pacific that China poses a growing military threat. “There’s no reason to sugarcoat it. The threat China poses is real, and it could be imminent,” he said. He also warned that any Chinese action against Taiwan would have “devastating consequences for the Indo-Pacific and the world.” Hegseth made it clear that while the US does not seek conflict, it will not back down. “We do not seek conflict with communist China… But we will not be pushed out of this critical region, and we will not let our allies and partners be subordinated and intimidated.” Beijing absent as Washington seizes the moment China chose not to send its defence minister to the gathering and was instead represented by an academic delegation. Hegseth used the opportunity to position Washington as a reliable partner in the Indo-Pacific. “Here in the Indo-Pacific, our futures are bound together,” he said. “We share your vision of peace and stability, of prosperity and security. And we are here to stay,” he added. Taking a dig at Beijing’s absence, he added, “We are here this morning, somebody else isn’t.” US calls for stronger defence ties in the region Hegseth assured regional allies of American support but also urged them to contribute more to collective defence. “We ask, and indeed we insist, that our allies and partners do their part on defence,” he said. “Sometimes that means having uncomfortable and tough conversations.” His remarks come at a time of growing concern among regional nations about the balance of power between the US and China, especially as Beijing expands its military presence across the Indo-Pacific. China accuses US of provoking conflict In response, China’s embassy in Singapore strongly criticised Hegseth’s address, calling it inflammatory and unnecessary. “The speech by the US defence chief is steeped in provocations and instigation,” the embassy said in a statement. China has not openly threatened war but has steadily increased its military and naval strength in the region. It has built artificial islands equipped with military facilities in disputed waters and now commands a navy with more vessels than that of the US. Summit highlights growing US-China divide The Shangri-La Dialogue, hosted by the International Institute for Strategic Studies, is a key platform for defence leaders from across the globe. Hegseth used the forum to outline the Trump administration’s firm stance on the Indo-Pacific, underlining Washington’s commitment to counter Beijing’s growing influence. He painted China as a rising military force bent on reshaping the regional order, warning that “Beijing is credibly preparing to potentially use military force to alter the balance of power in the Indo-Pacific.”

China chose not to send its defence minister to the gathering and was instead represented by an academic delegation. Hegseth used the opportunity to position Washington as a reliable partner in the Indo-Pacific.

'Steeped in provocations': US defence chief Pete Hegseth claims China preparing for war in Asia, Beijing calls it ‘instigation’

As US President Donald Trump ramps up pressure on Chinese imports with plans to double tariffs on steel and aluminium, fresh turbulence is erupting in China’s auto industry.&nbsp;&nbsp;The world’s largest car market is facing intense price wars, a situation that Beijing reportedly now calls “unsustainable” and dangerous for long-term industrial health.&nbsp;According to Reuters, on Saturday, China’s Ministry of Industry and Information Technology (MIIT) issued a rare public warning, urging domestic automakers to stop “brutal price wars” that it says are damaging profitability and destabilising the sector, according to state news agency Xinhua.&nbsp;&nbsp;This comes at a critical moment. The global auto supply chain is already bracing for impact as the US under Trump signals a hard line on trade.&nbsp;&nbsp;Washington is preparing to double tariffs on Chinese steel and aluminium exports and talks between Beijing and Washington over broader trade concerns remain deadlocked.<h2>An industry under-price siege</h2>Since early 2023, China’s carmakers have been reportedly locked in an escalating cycle of discount wars.&nbsp;&nbsp;Leading the latest round is BYD, China’s biggest electric vehicle (EV) manufacturer, which introduced fresh subsidies on over 20 models last week, including government-backed trade-in offers.&nbsp;According to Reuters, the cost of BYD’s Seagull electric hatchback has been slashed to as low as 55,800 yuan (around $7,750), triggering a domino effect.&nbsp;&nbsp;Rivals like Geely and Chery have since followed suit with their own price cuts. &nbsp;The China Association of Automobile Manufacturers (CAAM) also issued a parallel appeal on Saturday, calling the discounting spiral a “panic-triggered” trend that hurts operational efficiency and long-term viability.&nbsp; &nbsp;“Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost,” CAAM, in a statement released via state media as reported by Reuters.&nbsp; &nbsp;The organisation advised automakers to uphold fair competition and avoid monopolistic pricing practices.<h2>Internal friction: BYD vs Great Wall</h2>The government’s plea reportedly follows a public spat between industry heavyweights. On Friday, a BYD executive reportedly dismissed concerns about industry instability as “alarmist”, in response to Great Wall Motor Chairman Wei Jianjun, who reportedly warned that cutthroat pricing was hitting not just carmakers, but also their suppliers.&nbsp;According to Reuters, Wei said the industry was becoming “unhealthy” under the pressure of constant undercutting, a rare admission from a top Chinese automotive executive.<h2>Tariff tensions in the backdrop</h2>This domestic unrest is unfolding just as the external environment becomes more hostile.&nbsp; &nbsp;Last month, the US slapped fresh tariffs on several Chinese goods, including a proposal to double duties on Chinese steel and aluminium.&nbsp;&nbsp;This could reportedly disrupt raw material flows crucial to EV manufacturing.&nbsp;US officials have also raised concerns over the global dominance of Chinese EVs and components, with President Trump promising to “defend American manufacturing”.&nbsp;&nbsp;Meanwhile, China is reportedly preparing retaliatory measures, although no formal announcements have been made. &nbsp;According to Bloomberg, US-China trade talks remain gridlocked, with officials struggling to find common ground on tariffs, technology transfer, and market access.&nbsp; &nbsp;The auto sector, which sits at the intersection of all three, is particularly exposed.<h2>What lies ahead?</h2>As both domestic and international pressure mounts, Beijing appears to be recalibrating its strategy. The MIIT’s intervention reportedly signals that authorities may soon push for industry-wide pricing norms, or even regulatory scrutiny of aggressive discounting practices.&nbsp;For automakers like BYD, Geely, Chery, and Great Wall, the challenge now is two-fold: navigating rising input costs amid tariff uncertainty, while avoiding a profit squeeze from endless price battles.

Business & Economy: With President Trump increasing pressure on Chinese imports through plans to double tariffs on steel and aluminium, China automotive sector is experiencing substantial upheaval characterized by intense price competition. 

As US President Donald Trump ramps up pressure on Chinese imports with plans to double tariffs on steel and aluminium, fresh turbulence is erupting in China’s auto industry. The world’s largest car market is facing intense price wars, a situation that Beijing reportedly now calls “unsustainable” and dangerous for long-term industrial health. According to Reuters, on Saturday, China’s Ministry of Industry and Information Technology (MIIT) issued a rare public warning, urging domestic automakers to stop “brutal price wars” that it says are damaging profitability and destabilising the sector, according to state news agency Xinhua. This comes at a critical moment. The global auto supply chain is already bracing for impact as the US under Trump signals a hard line on trade. Washington is preparing to double tariffs on Chinese steel and aluminium exports and talks between Beijing and Washington over broader trade concerns remain deadlocked. An industry under-price siege Since early 2023, China’s carmakers have been reportedly locked in an escalating cycle of discount wars. Leading the latest round is BYD, China’s biggest electric vehicle (EV) manufacturer, which introduced fresh subsidies on over 20 models last week, including government-backed trade-in offers. According to Reuters, the cost of BYD’s Seagull electric hatchback has been slashed to as low as 55,800 yuan (around $7,750), triggering a domino effect. Rivals like Geely and Chery have since followed suit with their own price cuts. The China Association of Automobile Manufacturers (CAAM) also issued a parallel appeal on Saturday, calling the discounting spiral a “panic-triggered” trend that hurts operational efficiency and long-term viability. “Apart from reducing the price of goods according to law, enterprises shall not dump goods at prices below cost,” CAAM, in a statement released via state media as reported by Reuters. The organisation advised automakers to uphold fair competition and avoid monopolistic pricing practices. Internal friction: BYD vs Great Wall The government’s plea reportedly follows a public spat between industry heavyweights. On Friday, a BYD executive reportedly dismissed concerns about industry instability as “alarmist”, in response to Great Wall Motor Chairman Wei Jianjun, who reportedly warned that cutthroat pricing was hitting not just carmakers, but also their suppliers. According to Reuters, Wei said the industry was becoming “unhealthy” under the pressure of constant undercutting, a rare admission from a top Chinese automotive executive. Tariff tensions in the backdrop This domestic unrest is unfolding just as the external environment becomes more hostile. Last month, the US slapped fresh tariffs on several Chinese goods, including a proposal to double duties on Chinese steel and aluminium. This could reportedly disrupt raw material flows crucial to EV manufacturing. US officials have also raised concerns over the global dominance of Chinese EVs and components, with President Trump promising to “defend American manufacturing”. Meanwhile, China is reportedly preparing retaliatory measures, although no formal announcements have been made. According to Bloomberg, US-China trade talks remain gridlocked, with officials struggling to find common ground on tariffs, technology transfer, and market access. The auto sector, which sits at the intersection of all three, is particularly exposed. What lies ahead? As both domestic and international pressure mounts, Beijing appears to be recalibrating its strategy. The MIIT’s intervention reportedly signals that authorities may soon push for industry-wide pricing norms, or even regulatory scrutiny of aggressive discounting practices. For automakers like BYD, Geely, Chery, and Great Wall, the challenge now is two-fold: navigating rising input costs amid tariff uncertainty, while avoiding a profit squeeze from endless price battles.

With President Trump increasing pressure on Chinese imports through plans to double tariffs on steel and aluminium, China's automotive sector is experiencing substantial upheaval characterized by intense price competition.

China warns auto giants to halt price wars as US tariff tension escalates: Details here

China’s manufacturing activity contracted for a second consecutive month in May, but at a slower pace than April, thanks in part to a temporary easing of trade tensions with the United States.&nbsp;According to official data released on May 31 by the National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts.&nbsp;PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction. A reading above 50 indicates expansion, and below 50, a contraction.&nbsp;The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington, during which both sides agreed to slash previously imposed tariffs.&nbsp;The US reduced its average tariffs from 145 per cent to around 30 per cent, while China cut its own duties on American goods from 125 per cent to 10 per cent. The temporary rollback helped boost trade flows and revive some export activity.&nbsp;However, the recovery remains fragile. The new export orders sub-index climbed to 47.5 from 44.7 in April, and the new orders sub-index rose to 49.8 from 49.2—still below the key 50-point level. This signals continued contraction in overall demand despite some stabilisation in external trade.&nbsp;The non-manufacturing PMI, which includes services and construction, slipped slightly to 50.3 in May from 50.4 the previous month, remaining just above the expansion threshold. The composite index, combining both manufacturing and services, edged up to 50.4.&nbsp;Tariff pause brings temporary relief&nbsp;The recent tariff pause provided a modest lift to factory output, with some Chinese exporters reporting resumed orders from US partners. Still, the broader outlook remains clouded by uncertainty.&nbsp;On May 30, US President Donald Trump accused China of violating the newly reached trade agreement, declaring in a Truth Social post that he would no longer be “Mr Nice Guy”. He followed up by announcing a doubling of steel and aluminium tariffs to 50 per cent, a move that has once again rattled global trade sentiment.&nbsp;Tensions were further inflamed as the US began revoking visas for Chinese students, prompting a formal protest from Beijing.&nbsp;Despite the recent improvement in PMI data, economists remain cautious. According to a Bloomberg survey conducted in late May, China’s GDP is projected to grow 4.5 per cent in 2025, below the government’s 5 per cent target. While exports are expected to grow 1.1 per cent—a modest upgrade from April’s forecasted contraction—ongoing deflationary pressures and weak domestic consumption continue to weigh heavily on the economy.&nbsp;To counter the slowdown, China’s central bank recently introduced new stimulus measures, including interest rate cuts and a significant liquidity injection. Analysts believe that while the tariff reprieve may ease the need for more aggressive action, Beijing may still need to deploy further support if trade talks stall or domestic momentum weakens.&nbsp;For now, the slight rebound in manufacturing offers a tentative sign of stability, but with trade tensions escalating once again, the sustainability of that recovery remains in question.

China's manufacturing PMI rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington.

China’s manufacturing activity contracted for a second consecutive month in May, but at a slower pace than April, thanks in part to a temporary easing of trade tensions with the United States. According to official data released on May 31 by the National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction. A reading above 50 indicates expansion, and below 50, a contraction. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington, during which both sides agreed to slash previously imposed tariffs. The US reduced its average tariffs from 145 per cent to around 30 per cent, while China cut its own duties on American goods from 125 per cent to 10 per cent. The temporary rollback helped boost trade flows and revive some export activity. However, the recovery remains fragile. The new export orders sub-index climbed to 47.5 from 44.7 in April, and the new orders sub-index rose to 49.8 from 49.2—still below the key 50-point level. This signals continued contraction in overall demand despite some stabilisation in external trade. The non-manufacturing PMI, which includes services and construction, slipped slightly to 50.3 in May from 50.4 the previous month, remaining just above the expansion threshold. The composite index, combining both manufacturing and services, edged up to 50.4. Tariff pause brings temporary relief The recent tariff pause provided a modest lift to factory output, with some Chinese exporters reporting resumed orders from US partners. Still, the broader outlook remains clouded by uncertainty. On May 30, US President Donald Trump accused China of violating the newly reached trade agreement, declaring in a Truth Social post that he would no longer be “Mr Nice Guy”. He followed up by announcing a doubling of steel and aluminium tariffs to 50 per cent, a move that has once again rattled global trade sentiment. Tensions were further inflamed as the US began revoking visas for Chinese students, prompting a formal protest from Beijing. Despite the recent improvement in PMI data, economists remain cautious. According to a Bloomberg survey conducted in late May, China’s GDP is projected to grow 4.5 per cent in 2025, below the government’s 5 per cent target. While exports are expected to grow 1.1 per cent—a modest upgrade from April’s forecasted contraction—ongoing deflationary pressures and weak domestic consumption continue to weigh heavily on the economy. To counter the slowdown, China’s central bank recently introduced new stimulus measures, including interest rate cuts and a significant liquidity injection. Analysts believe that while the tariff reprieve may ease the need for more aggressive action, Beijing may still need to deploy further support if trade talks stall or domestic momentum weakens. For now, the slight rebound in manufacturing offers a tentative sign of stability, but with trade tensions escalating once again, the sustainability of that recovery remains in question.

China's manufacturing PMI rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington.

China’s factory slump eases in May after tariff truce with US

Residents of China saw a fireball streak through the sky on Wednesday night. A loud noise followed it, triggering panic, with people speculating whether an asteroid had hit Earth. Now, a researcher has said that it was a fireball meteor, China News Service reported. The space rock made such a powerful entry that it was seen not only in Maoming in South China's Guangdong Province, but also in the Hainan Province.&nbsp;Reports suggest that the fireball was seen at &nbsp;9:33 pm local time on Wednesday and was accompanied by a loud boom. Several people in Maoming saw the meteor, which was so bright that it turned the night sky into day.&nbsp;Chinese observatory officials have confirmed that the cosmic visitor over Maoming was a fireball meteor, also known as a bolide. This type of a meteor is several notches brighter than a regular meteor.&nbsp;Also Read: <a href="https://www.wionews.com/science/venus-pancake-volcanoes-crust-veritas-davinci-missions-1748604215813">Hell planet has strange volcanoes shaped over 'hundreds of thousands of years'</a>&nbsp;It left a stunning trail behind it which changed colours - from being a bright orange-yellow to blue-green.&nbsp;Residents of Maoming reported the incident on social media, expressing shock and awe at the strange visitor from space. However, no injuries were reported because of the meteor. Experts told Chinese media that it entered from the northeast and went towards the southwest.&nbsp;<h2>Where did the fireball meteor land?</h2>&nbsp;Right now, the fate of the fireball meteor is not known. Reports suggest that it could have landed in the South China Sea.&nbsp;Meteoroids regularly enter Earth's atmosphere, but not all of them are as bright or noisy as this one. Most of them burn up in the upper atmosphere and vanish. But fireball meteors undergo friction and rapidly heat up, which generates an intense flash of light. Such meteors also trigger a loud sonic boom.&nbsp;Also Read: <a href="https://www.wionews.com/science/deep-space-radio-signals-cosmic-mystery-object-pulsar-magnetar-1748517706567">44 minutes apart, 2 minutes every time: Something from deep space is sending signals to Earth</a>&nbsp;Bolides are not limited to meteors. They are also linked to comets and asteroids. As they enter the atmosphere, intense heat and pressure are released, which leads them to explode.<h2>Tunguska event of 1908&nbsp;</h2>&nbsp;China witnessed a large-scale cosmic explosion over 100 years ago in Tunguska. In 1908, a large asteroid or comet entered Earth over Siberia, causing a bright fireball and shockwave. An area of 2,150 square kilometres was flattened, with over 80 million trees destroyed. It was 1,000 times stronger than the Hiroshima atomic bomb.&nbsp;

<blockquote class="twitter-tweet" data-media-max-width="560">Local residents also heard an explosion, and the meteor is estimated to have fallen into the South China Sea. <a href="https://t.co/lOVYOyECUJ">https://t.co/lOVYOyECUJ</a> <a href="https://t.co/FIbbiwiRor">pic.twitter.com/FIbbiwiRor</a>&mdash; Jim (@yangyubin1998) <a href="https://twitter.com/yangyubin1998/status/1927731789218410597?ref_src=twsrc%5Etfw">May 28, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Did an asteroid enter Earth? Maoming in China witnessed a bright fireball meteor on Wednesday, followed by a loud boom that triggered panic among residents.

Residents of China saw a fireball streak through the sky on Wednesday night. A loud noise followed it, triggering panic, with people speculating whether an asteroid had hit Earth. Now, a researcher has said that it was a fireball meteor, China News Service reported. The space rock made such a powerful entry that it was seen not only in Maoming in South China's Guangdong Province, but also in the Hainan Province. Reports suggest that the fireball was seen at 9:33 pm local time on Wednesday and was accompanied by a loud boom. Several people in Maoming saw the meteor, which was so bright that it turned the night sky into day. Chinese observatory officials have confirmed that the cosmic visitor over Maoming was a fireball meteor, also known as a bolide. This type of a meteor is several notches brighter than a regular meteor. Also Read: Hell planet has strange volcanoes shaped over 'hundreds of thousands of years' It left a stunning trail behind it which changed colours - from being a bright orange-yellow to blue-green. Residents of Maoming reported the incident on social media, expressing shock and awe at the strange visitor from space. However, no injuries were reported because of the meteor. Experts told Chinese media that it entered from the northeast and went towards the southwest. Where did the fireball meteor land? Right now, the fate of the fireball meteor is not known. Reports suggest that it could have landed in the South China Sea. Meteoroids regularly enter Earth's atmosphere, but not all of them are as bright or noisy as this one. Most of them burn up in the upper atmosphere and vanish. But fireball meteors undergo friction and rapidly heat up, which generates an intense flash of light. Such meteors also trigger a loud sonic boom. Also Read: 44 minutes apart, 2 minutes every time: Something from deep space is sending signals to Earth Bolides are not limited to meteors. They are also linked to comets and asteroids. As they enter the atmosphere, intense heat and pressure are released, which leads them to explode. Tunguska event of 1908 China witnessed a large-scale cosmic explosion over 100 years ago in Tunguska. In 1908, a large asteroid or comet entered Earth over Siberia, causing a bright fireball and shockwave. An area of 2,150 square kilometres was flattened, with over 80 million trees destroyed. It was 1,000 times stronger than the Hiroshima atomic bomb.

Did an asteroid enter Earth? Maoming in China witnessed a bright fireball meteor on Wednesday, followed by a loud boom that triggered panic among residents.

Did an asteroid enter Earth over China? Bright fireball and explosion reported in Guangdong

Russian Foreign Minister Sergey Lavrov on Friday said that India is being forced by the US and QUAD into military operations, even though it was formed for trade purposes. QUAD alliance, which consists of the United States, Japan and Australia, are organising naval and military exercises."We spoke to our Indian friends back then and they told us that their interest in joining the Quad is exclusively of a trade of economic nature and cooperation in other peaceful areas," said Lavrov on Friday. He said that India must have realised the militarisation agenda of the trade alliance.Lavarov is optimistic about reviving the trilateral forum between Russia-India-China (RIC Troika), "Now that, as I understand, an understanding has been reached between India and China on how to calm the situation on the border, it seems to me that the time has come to revive this RIC troika."Lavrov said that the format was established by the Former Russian Prime Minister Yevgeny Primakov as a valuable forum for trade and economic cooperation. It has already conducted 20 ministerial meetings at the level of heads of the foreign ministries, trade and financial organisations.&nbsp;Lavrov is reported to travel to India in June. He argued earlier that the West, especially the US, intends to create antagonism between India and China. The renaming of Asia-Pacific as Indo-Pacific was a strategic move to isolate China in the region.&nbsp;&nbsp;&nbsp;&nbsp;

Russian Foreign Minister Sergey Lavrov QUAD alliance, consisting of the United States, Japan and Australia, and formed with trade interests to are organising naval and military exercises, and India must understand the agenda 

Russian Foreign Minister Sergey Lavrov on Friday said that India is being forced by the US and QUAD into military operations, even though it was formed for trade purposes. QUAD alliance, which consists of the United States, Japan and Australia, are organising naval and military exercises. "We spoke to our Indian friends back then and they told us that their interest in joining the Quad is exclusively of a trade of economic nature and cooperation in other peaceful areas," said Lavrov on Friday. He said that India must have realised the militarisation agenda of the trade alliance. Lavarov is optimistic about reviving the trilateral forum between Russia-India-China (RIC Troika), "Now that, as I understand, an understanding has been reached between India and China on how to calm the situation on the border, it seems to me that the time has come to revive this RIC troika." Lavrov said that the format was established by the Former Russian Prime Minister Yevgeny Primakov as a valuable forum for trade and economic cooperation. It has already conducted 20 ministerial meetings at the level of heads of the foreign ministries, trade and financial organisations. Lavrov is reported to travel to India in June. He argued earlier that the West, especially the US, intends to create antagonism between India and China. The renaming of Asia-Pacific as Indo-Pacific was a strategic move to isolate China in the region.

Russian Foreign Minister Sergey Lavrov QUAD alliance, consisting of the United States, Japan and Australia, and formed with trade interests to are organising naval and military exercises, and India must understand the agenda&nbsp;

Lavrov says India is being forced by the QUAD and the US into military operations

China’s manufacturing sector is poised to contract for the second month in a row in May, signalling fresh strain on the country’s export-heavy economy as it faces simultaneous trade flare-ups with the United States and the European Union, highlights a Reuters poll. &nbsp;According to a Reuters poll of 21 economists, the official Purchasing Managers’ Index (PMI), scheduled for release on Saturday (June 1), is expected to register at 49.5, slightly higher than April’s 49.0, but still below the 50-point threshold that separates expansion from contraction.&nbsp;&nbsp;The latest data reflects a broader slowdown across China’s $19 trillion economy, which is contending with weakening domestic demand, deflation, and a growing property crisis, even as policymakers race to stabilise growth through stimulus.<h2>China is now fighting a trade war on two fronts</h2>The May factory slump comes at a time when China is navigating major trade tensions with both Washington and Brussels.&nbsp;In the US, President Donald Trump has escalated economic hostilities by slapping 145 per cent tariffs on a wide range of Chinese imports — part of his broader push to decouple from China.&nbsp; &nbsp;Although a temporary 90-day tariff truce was reached, with duties lowered to 30 per cent, negotiations remain deadlocked and the core issues unresolved.&nbsp;Simultaneously, the European Union has reportedly launched anti-dumping investigations targeting Chinese tyres and electric vehicles.&nbsp; &nbsp;China has reportedly retaliated with probes into European brandy and dairy products, fuelling fears of a full-fledged trade confrontation with the bloc, as per Reuters.&nbsp;&nbsp;This dual-front pressure is reportedly placing immense strain on China’s industrial backbone, which has traditionally relied on open global markets to power growth.<h2>Domestic challenges are compounding the crisis</h2>According to Reuters, China’s internal economic environment offers little relief. Despite a stronger-than-expected GDP performance in Q1 2025, deflation remains entrenched.&nbsp;&nbsp;The country’s producer price index dropped 2.7 per cent year-on-year in April, extending its contraction for a third consecutive month.&nbsp;&nbsp;Reuters poll highlights that real incomes have stagnated, and consumer spending has yet to rebound convincingly after the pandemic. Meanwhile, the long-running property sector slump continues to drag on overall sentiment and private investment. &nbsp;Even though industrial profits showed some signs of improvement, they remain concentrated among a handful of state-backed firms, leaving smaller manufacturers especially exposed to the current downturn, as per Reuters&nbsp;<h2>Beijing is expected to roll out more stimulus</h2>To counteract the external and internal economic drag, China’s government is reportedly expected to announce further fiscal and monetary stimulus measures. These could reportedly include additional interest rate cuts, tax incentives, infrastructure spending, and targeted credit for small and medium-sized firms. &nbsp;The PMI numbers to be released on June 1 will be followed by the Caixin private sector PMI on June 3, which focuses more on smaller, export-oriented companies. Analysts predict a modest improvement in the Caixin reading, up to 50.6 from 50.4, suggesting fragile but ongoing momentum.<h2>The road ahead is uncertain</h2>As the world’s second-largest economy contends with deepening trade hostilities and an uneven post-pandemic recovery, the question now is whether Beijing can successfully pivot from an export-driven model to a more resilient, demand-led economy.&nbsp;The coming weeks, with trade talks in flux, tariff deadlines looming, and critical economic data releases will be crucial in shaping China’s path through a turbulent global landscape.

Business & Economy: This comes amid China is grappling with major trade tensions with the US and the EU.

China’s manufacturing sector is poised to contract for the second month in a row in May, signalling fresh strain on the country’s export-heavy economy as it faces simultaneous trade flare-ups with the United States and the European Union, highlights a Reuters poll. According to a Reuters poll of 21 economists, the official Purchasing Managers’ Index (PMI), scheduled for release on Saturday (June 1), is expected to register at 49.5, slightly higher than April’s 49.0, but still below the 50-point threshold that separates expansion from contraction. The latest data reflects a broader slowdown across China’s $19 trillion economy, which is contending with weakening domestic demand, deflation, and a growing property crisis, even as policymakers race to stabilise growth through stimulus. China is now fighting a trade war on two fronts The May factory slump comes at a time when China is navigating major trade tensions with both Washington and Brussels. In the US, President Donald Trump has escalated economic hostilities by slapping 145 per cent tariffs on a wide range of Chinese imports — part of his broader push to decouple from China. Although a temporary 90-day tariff truce was reached, with duties lowered to 30 per cent, negotiations remain deadlocked and the core issues unresolved. Simultaneously, the European Union has reportedly launched anti-dumping investigations targeting Chinese tyres and electric vehicles. China has reportedly retaliated with probes into European brandy and dairy products, fuelling fears of a full-fledged trade confrontation with the bloc, as per Reuters. This dual-front pressure is reportedly placing immense strain on China’s industrial backbone, which has traditionally relied on open global markets to power growth. Domestic challenges are compounding the crisis According to Reuters, China’s internal economic environment offers little relief. Despite a stronger-than-expected GDP performance in Q1 2025, deflation remains entrenched. The country’s producer price index dropped 2.7 per cent year-on-year in April, extending its contraction for a third consecutive month. Reuters poll highlights that real incomes have stagnated, and consumer spending has yet to rebound convincingly after the pandemic. Meanwhile, the long-running property sector slump continues to drag on overall sentiment and private investment. Even though industrial profits showed some signs of improvement, they remain concentrated among a handful of state-backed firms, leaving smaller manufacturers especially exposed to the current downturn, as per Reuters Beijing is expected to roll out more stimulus To counteract the external and internal economic drag, China’s government is reportedly expected to announce further fiscal and monetary stimulus measures. These could reportedly include additional interest rate cuts, tax incentives, infrastructure spending, and targeted credit for small and medium-sized firms. The PMI numbers to be released on June 1 will be followed by the Caixin private sector PMI on June 3, which focuses more on smaller, export-oriented companies. Analysts predict a modest improvement in the Caixin reading, up to 50.6 from 50.4, suggesting fragile but ongoing momentum. The road ahead is uncertain As the world’s second-largest economy contends with deepening trade hostilities and an uneven post-pandemic recovery, the question now is whether Beijing can successfully pivot from an export-driven model to a more resilient, demand-led economy. The coming weeks, with trade talks in flux, tariff deadlines looming, and critical economic data releases will be crucial in shaping China’s path through a turbulent global landscape.

China's manufacturing sector is expected to contract for the second consecutive month in May, putting strain on the country's export-heavy economy, highlights a Reuters poll.&nbsp;

China’s May factory slowdown likely to deepens as trade tensions with US and EU escalate

Diamonds may be forever, but the current market is anything but stable. A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. As one of the world’s most globalised luxury sectors, the diamond trade is now navigating a complex web of geopolitical, economic, and consumer-driven shifts.Announced in early April, the tariff announced by US President Donald Trump applies to a wide range of goods, including natural polished diamonds, but excludes metals such as gold and copper.&nbsp;The immediate impact was a scramble across key trading hubs like Antwerp, with exporters rushing to ship inventory before the tariffs took effect. India, the largest exporter of cut and polished diamonds, saw a fivefold surge in US-bound exports from April 1 to 4, reaching $512 million. Yet despite the rush, April exports of cut and polished diamonds fell 6.12 per cent compared to the previous year, according to data released by the Gem and Jewellery Export Promotion Council (GJEPC).Unlike commodities sourced and processed in a single location, diamonds often travel extensively. A single stone might be mined in Botswana, polished in India, certified in the US, and sold in Europe. The 10 per cent import duty adds cost at the final leg of that journey—a price increase that traders warn will ultimately be borne by consumers, especially in the US, which accounts for more than half of the global diamond demand.Retailers in the US are already pushing the added burden onto suppliers. Financial Times recently reported that Signet Jewellers, the largest diamond retailer in the country, told vendors it would not pay any additional costs linked to the new tariff on existing purchase orders. The company urged its partners to expedite shipments into the US to mitigate the financial fallout.The broader industry remains in a holding pattern as the White House has paused additional reciprocal tariffs for 90 days, pending further negotiations. But the initial 10 per cent duty remains active, and uncertainty is undermining confidence across the global supply chain.&nbsp;Consumer pressure and competitive headwinds&nbsp;Tariffs are hitting at an especially sensitive moment for the sector. Inflation and a softening in consumer sentiment have already begun to dampen discretionary spending. According to the Bureau of Economic Analysis, US consumer spending on jewellery and watches fell 5 per cent year-on-year in the first quarter of 2025. The National Retail Federation has forecast retail growth to slow to between 2.7 per cent and 3.7 per cent this year, compared to 8.1 per cent in 2024.Against this backdrop, the popularity of lab-grown diamonds (LGDs) has surged. These diamonds are chemically identical to natural diamonds but up to 80 per cent cheaper. LGDs now appear in over half of US engagement rings, according to The Knot’s 2025 Real Weddings study. Their rise has played a major role in the nearly 60 per cent decline in natural diamond prices since their peak in early 2022.To combat this, some traditional players are consolidating their strategies. De Beers, for example, has opted to shut down its LGD jewellery brand Lightbox to refocus on natural stones. The company’s parent, Anglo American, has written down De Beers’ value by $4.5 billion over the past two years and is currently preparing it for a possible spin-off or sale.&nbsp;China demand falters, India rises&nbsp;Compounding the industry’s challenges is a steep contraction in Chinese demand. Once a key driver of luxury consumption, China’s diamond market has shrunk significantly amid macro- and microeconomic challenges.Data from the Gems &amp; Jewelry Trade Association of China shows that the market fell from RMB 100 billion ($13.88 billion) in 2021 to just RMB 43 billion ($55.52 billion) in 2024—a staggering 57 per cent decline. Gem-quality diamond imports dropped 73 per cent by volume and 83 per cent by value over the same period, signalling severe price erosion.The decline in China’s demand has had global consequences, as it was the world's second-largest diamond market. India, however, is emerging as a counterweight to China’s slowdown.While India’s exports are down, India’s domestic market is showing double-digit growth, making it the world’s second-largest diamond consumer behind the US. According to industry experts, India’s rise has helped offset some of the global demand slump. Still, the growth is not enough to fully balance the downturn in China with the volatility in the US.&nbsp;Fragile supply chain faces uncertain future&nbsp;The global diamond supply chain—already stretched by pandemic-era disruptions—is particularly vulnerable to trade barriers. A typical diamond passes through several borders: mined in parts of Africa, traded in the Middle East or Europe, polished in India, certified in the US, and sold in retail outlets globally. Tariffs, therefore, do more than add cost; they risk unravelling the finely tuned logistics of the entire ecosystem.Adding to the complexity is the uncertain legal treatment of diamonds under US trade rules. While other commodities like gold and copper are exempt from tariffs, loose diamonds are currently included, despite being viewed by some as a raw material. Industry groups like the World Diamond Council are lobbying for exemption, warning that the tariffs could act as a consumption tax and dampen sentimental purchases such as engagement rings and anniversary gifts.The global diamond industry faces a crossroads. Tariffs and geopolitics have joined falling demand and technological disruption as key forces shaping the future. Analysts predict a bifurcation of the market, with premium natural diamonds becoming niche luxury items, while lab-grown stones dominate the mass market.For now, even the hardest substance on Earth is proving vulnerable to the softening forces of economics and policy.

A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. 

Diamonds may be forever, but the current market is anything but stable. A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives. As one of the world’s most globalised luxury sectors, the diamond trade is now navigating a complex web of geopolitical, economic, and consumer-driven shifts. Announced in early April, the tariff announced by US President Donald Trump applies to a wide range of goods, including natural polished diamonds, but excludes metals such as gold and copper. The immediate impact was a scramble across key trading hubs like Antwerp, with exporters rushing to ship inventory before the tariffs took effect. India, the largest exporter of cut and polished diamonds, saw a fivefold surge in US-bound exports from April 1 to 4, reaching $512 million. Yet despite the rush, April exports of cut and polished diamonds fell 6.12 per cent compared to the previous year, according to data released by the Gem and Jewellery Export Promotion Council (GJEPC). Unlike commodities sourced and processed in a single location, diamonds often travel extensively. A single stone might be mined in Botswana, polished in India, certified in the US, and sold in Europe. The 10 per cent import duty adds cost at the final leg of that journey—a price increase that traders warn will ultimately be borne by consumers, especially in the US, which accounts for more than half of the global diamond demand. Retailers in the US are already pushing the added burden onto suppliers. Financial Times recently reported that Signet Jewellers, the largest diamond retailer in the country, told vendors it would not pay any additional costs linked to the new tariff on existing purchase orders. The company urged its partners to expedite shipments into the US to mitigate the financial fallout. The broader industry remains in a holding pattern as the White House has paused additional reciprocal tariffs for 90 days, pending further negotiations. But the initial 10 per cent duty remains active, and uncertainty is undermining confidence across the global supply chain. Consumer pressure and competitive headwinds Tariffs are hitting at an especially sensitive moment for the sector. Inflation and a softening in consumer sentiment have already begun to dampen discretionary spending. According to the Bureau of Economic Analysis, US consumer spending on jewellery and watches fell 5 per cent year-on-year in the first quarter of 2025. The National Retail Federation has forecast retail growth to slow to between 2.7 per cent and 3.7 per cent this year, compared to 8.1 per cent in 2024. Against this backdrop, the popularity of lab-grown diamonds (LGDs) has surged. These diamonds are chemically identical to natural diamonds but up to 80 per cent cheaper. LGDs now appear in over half of US engagement rings, according to The Knot’s 2025 Real Weddings study. Their rise has played a major role in the nearly 60 per cent decline in natural diamond prices since their peak in early 2022. To combat this, some traditional players are consolidating their strategies. De Beers, for example, has opted to shut down its LGD jewellery brand Lightbox to refocus on natural stones. The company’s parent, Anglo American, has written down De Beers’ value by $4.5 billion over the past two years and is currently preparing it for a possible spin-off or sale. China demand falters, India rises Compounding the industry’s challenges is a steep contraction in Chinese demand. Once a key driver of luxury consumption, China’s diamond market has shrunk significantly amid macro- and microeconomic challenges. Data from the Gems & Jewelry Trade Association of China shows that the market fell from RMB 100 billion ($13.88 billion) in 2021 to just RMB 43 billion ($55.52 billion) in 2024—a staggering 57 per cent decline. Gem-quality diamond imports dropped 73 per cent by volume and 83 per cent by value over the same period, signalling severe price erosion. The decline in China’s demand has had global consequences, as it was the world's second-largest diamond market. India, however, is emerging as a counterweight to China’s slowdown. While India’s exports are down, India’s domestic market is showing double-digit growth, making it the world’s second-largest diamond consumer behind the US. According to industry experts, India’s rise has helped offset some of the global demand slump. Still, the growth is not enough to fully balance the downturn in China with the volatility in the US. Fragile supply chain faces uncertain future The global diamond supply chain—already stretched by pandemic-era disruptions—is particularly vulnerable to trade barriers. A typical diamond passes through several borders: mined in parts of Africa, traded in the Middle East or Europe, polished in India, certified in the US, and sold in retail outlets globally. Tariffs, therefore, do more than add cost; they risk unravelling the finely tuned logistics of the entire ecosystem. Adding to the complexity is the uncertain legal treatment of diamonds under US trade rules. While other commodities like gold and copper are exempt from tariffs, loose diamonds are currently included, despite being viewed by some as a raw material. Industry groups like the World Diamond Council are lobbying for exemption, warning that the tariffs could act as a consumption tax and dampen sentimental purchases such as engagement rings and anniversary gifts. The global diamond industry faces a crossroads. Tariffs and geopolitics have joined falling demand and technological disruption as key forces shaping the future. Analysts predict a bifurcation of the market, with premium natural diamonds becoming niche luxury items, while lab-grown stones dominate the mass market. For now, even the hardest substance on Earth is proving vulnerable to the softening forces of economics and policy.

A new 10 per cent US tariff on polished diamond imports has added significant strain to a global diamond industry already under pressure from declining Chinese demand and the rapid rise of lab-grown alternatives.&nbsp;

Is the hardest metal crumbling under US tariff pressure?

India's External Affairs Minister S Jaishankar on Monday (May 26) responded on China's role in the India-Pakistan clash after Operation Sindoor. In an interview with the German newspaper Frankfurter Allgemeine Zeitung, EAM Jaishankar said, “You know, many of the weapons systems that Pakistan has are of Chinese origin" even as he did not name the country directly.&nbsp;"You know, many of the weapons systems that Pakistan has are of Chinese origin, and the two countries are very close. You can draw your conclusions from that," he said.&nbsp;On questions if India and Pakistan was at a brink of nuclear war, Jaishankar said, “Very, very far away. I'm frankly astonished by your question." "At no point was a nuclear level reached. There is a narrative as if everything that happens in our part of the world leads directly to a nuclear problem. That disturbs me a lot because it encourages terrible activities like terrorism," he said.&nbsp;&nbsp;The EAM also ruled out US mediation in the ceasefire between India and Pakistan. He said, “The cessation of firing was agreed upon between the military commanders of both sides through direct contact. The morning before, we effectively hit and incapacitated Pakistan's main airbases and air defence system. So, who should I thank for the cessation of hostilities? I thank the Indian military because it was the Indian military action that made Pakistan say: We are ready to stop.”&nbsp;EAM Jaishankar had earlier in said in an interview, "Rubio had spoken to me, Vance had spoken to our prime minister. They had their view, and they were talking to us, and they were talking to Pakistanis, as indeed were some other countries. The United States was not alone in this. I think there were some countries in the Gulf. There were some others as well."

<blockquote class="twitter-tweet">Cessation of violence was negotiated directly between India and Pakistan says EAM Dr S Jaishankar <a href="https://t.co/7Bfyz2kvaI">pic.twitter.com/7Bfyz2kvaI</a>&mdash; Sidhant Sibal (@sidhant) <a href="https://twitter.com/sidhant/status/1925608762380853658?ref_src=twsrc%5Etfw">May 22, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

External Affairs Minister S Jaishankar on Monday responded on Chinas role in the India Pakistan clash after Operation Sindoor

India's External Affairs Minister S Jaishankar on Monday (May 26) responded on China's role in the India-Pakistan clash after Operation Sindoor. In an interview with the German newspaper Frankfurter Allgemeine Zeitung, EAM Jaishankar said, “You know, many of the weapons systems that Pakistan has are of Chinese origin" even as he did not name the country directly. "You know, many of the weapons systems that Pakistan has are of Chinese origin, and the two countries are very close. You can draw your conclusions from that," he said. On questions if India and Pakistan was at a brink of nuclear war, Jaishankar said, “Very, very far away. I'm frankly astonished by your question." "At no point was a nuclear level reached. There is a narrative as if everything that happens in our part of the world leads directly to a nuclear problem. That disturbs me a lot because it encourages terrible activities like terrorism," he said. The EAM also ruled out US mediation in the ceasefire between India and Pakistan. He said, “The cessation of firing was agreed upon between the military commanders of both sides through direct contact. The morning before, we effectively hit and incapacitated Pakistan's main airbases and air defence system. So, who should I thank for the cessation of hostilities? I thank the Indian military because it was the Indian military action that made Pakistan say: We are ready to stop.” EAM Jaishankar had earlier in said in an interview, "Rubio had spoken to me, Vance had spoken to our prime minister. They had their view, and they were talking to us, and they were talking to Pakistanis, as indeed were some other countries. The United States was not alone in this. I think there were some countries in the Gulf. There were some others as well."

India's External Affairs Minister S Jaishankar on Monday (May 26) responded on China's role in the India-Pakistan clash after Operation Sindoor.

Has China played a role in the conflict with Pakistan? EAM Jaishankar's 'they're close' response

China’s banking sector is on thin ice. A new analysis by Nikkei Asia reveals that 80 per cent of Chinese commercial banks have reported net interest margins falling below the profitability threshold, raising red flags about the financial health of the world’s second-largest economy.&nbsp;According to the report, 54 out of 58 publicly listed banks across mainland China and Hong Kong saw their net interest margins decline for the fiscal year ending December 2024.&nbsp;&nbsp;The average interest margin now stands at 1.52 per cent, below the 1.8 per cent warning level set by China’s banking association, a benchmark for financial soundness.<h2>Lending shrinks, profits dip</h2>The net interest margin, the difference between interest earned on loans and paid on deposits is a key profitability metric for banks. In 2019, only six banks were below the profitability threshold. By the end of 2024, that number had surged to 47 over 80 per cent. &nbsp;The root causes include weak loan demand, plunging lending rates, and a stagnant property market. The average interest rate on new loans in April 2025 fell to a record low of 3.2 per cent. Both businesses and households, wary of the economic outlook, are holding back on fresh credit.&nbsp;Even small and medium-sized enterprises (SMEs), typically charged higher rates due to default risks, are now borrowing at nearly the same rate as large firms. The Industrial and Commercial Bank of China, for instance, is offering loans to micro-enterprises at 3.3 per cent, barely above the national average.&nbsp;This compression of risk premiums is alarming financial experts. Pan Huafu, Vice President of Bank of Hangzhou, told Nikkei Asia that rising credit risk in the SME segment is now a top concern. Shinichi Seki, a researcher at the Japan Research Institute, estimates that potential bad loans could be as high as 7.8 per cent, far above the official figure of 1.5 per cent, which many believe underrepresents the actual risk due to lax asset valuation practices.<h2>US-China tariff tension&nbsp;</h2> This banking turmoil comes amid a renewed US-China tariff war, reignited under President Donald Trump’s second term. Earlier this year, Washington stunned global markets by imposing a sweeping 145 per cent tariff on a wide range of Chinese imports, citing national security concerns, intellectual property violations, and persistent trade imbalances. In a tit-for-tat move, Beijing retaliated with a 125 per cent reciprocal tariff targeting critical US exports, from agricultural produce and machinery to high-tech components. The sharp escalation triggered widespread fears of a global trade chill. To dial back tensions, both sides met for high-level trade talks in Geneva. While the negotiations failed to produce a comprehensive deal, they led to a significant 90-day truce that included a partial rollback of tariffs. The US reduced its tariffs on Chinese goods from 145 per cent to 30 per cent, while China lowered its tariffs on US imports from 125 per cent to 10 per cent. Despite this reduction, tariffs remain substantially higher than pre-2024 levels, and the uncertainty continues to weigh heavily on investor sentiment and global trade flows. For China, whose economy is already struggling with weak domestic demand, the impact is direct, as shrinking exports reduce credit demand, adding further strain to an already fragile banking system.<h2>Can capital injections save the day?</h2>In March, the Chinese government announced a 500-billion-yuan ($69.4 billion) capital injection during the National People’s Congress to stabilise banks. Major state-owned lenders, including the Bank of China and China Construction Bank, have since unveiled recapitalisation plans.&nbsp;But analysts caution the move may provide only temporary relief. Smaller regional banks, particularly in economically distressed rural areas, remain heavily exposed to bad loans and credit defaults.&nbsp;“All the big state-owned banks can do is bail out smaller ones through mergers and bad loan clean-ups,” said Naoki Tsukioka, Chief Economist at Mizuho Research &amp; Technologies, in an interview with Nikkei Asia. “But a swift and complete solution remains elusive.”<h2>Echoes from Japan’s banking collapse?</h2>There are growing concerns that China could follow Japan’s path in the 1990s, when bad loan mismanagement led to a decade-long economic stagnation. If Chinese banks continue to underplay asset risks and delay loan clean-ups, they risk triggering a deeper credit freeze that could severely chill the broader economy.&nbsp;

Business & Economy: In March, the Chinese government announced a 500-billion-yuan ($69.4 billion) capital injection during the National People’s Congress to stabilise banks.

China’s banking sector is on thin ice. A new analysis by Nikkei Asia reveals that 80 per cent of Chinese commercial banks have reported net interest margins falling below the profitability threshold, raising red flags about the financial health of the world’s second-largest economy. According to the report, 54 out of 58 publicly listed banks across mainland China and Hong Kong saw their net interest margins decline for the fiscal year ending December 2024. The average interest margin now stands at 1.52 per cent, below the 1.8 per cent warning level set by China’s banking association, a benchmark for financial soundness. Lending shrinks, profits dip The net interest margin, the difference between interest earned on loans and paid on deposits is a key profitability metric for banks. In 2019, only six banks were below the profitability threshold. By the end of 2024, that number had surged to 47 over 80 per cent. The root causes include weak loan demand, plunging lending rates, and a stagnant property market. The average interest rate on new loans in April 2025 fell to a record low of 3.2 per cent. Both businesses and households, wary of the economic outlook, are holding back on fresh credit. Even small and medium-sized enterprises (SMEs), typically charged higher rates due to default risks, are now borrowing at nearly the same rate as large firms. The Industrial and Commercial Bank of China, for instance, is offering loans to micro-enterprises at 3.3 per cent, barely above the national average. This compression of risk premiums is alarming financial experts. Pan Huafu, Vice President of Bank of Hangzhou, told Nikkei Asia that rising credit risk in the SME segment is now a top concern. Shinichi Seki, a researcher at the Japan Research Institute, estimates that potential bad loans could be as high as 7.8 per cent, far above the official figure of 1.5 per cent, which many believe underrepresents the actual risk due to lax asset valuation practices. US-China tariff tension This banking turmoil comes amid a renewed US-China tariff war, reignited under President Donald Trump’s second term. Earlier this year, Washington stunned global markets by imposing a sweeping 145 per cent tariff on a wide range of Chinese imports, citing national security concerns, intellectual property violations, and persistent trade imbalances. In a tit-for-tat move, Beijing retaliated with a 125 per cent reciprocal tariff targeting critical US exports, from agricultural produce and machinery to high-tech components. The sharp escalation triggered widespread fears of a global trade chill. To dial back tensions, both sides met for high-level trade talks in Geneva. While the negotiations failed to produce a comprehensive deal, they led to a significant 90-day truce that included a partial rollback of tariffs. The US reduced its tariffs on Chinese goods from 145 per cent to 30 per cent, while China lowered its tariffs on US imports from 125 per cent to 10 per cent. Despite this reduction, tariffs remain substantially higher than pre-2024 levels, and the uncertainty continues to weigh heavily on investor sentiment and global trade flows. For China, whose economy is already struggling with weak domestic demand, the impact is direct, as shrinking exports reduce credit demand, adding further strain to an already fragile banking system. Can capital injections save the day? In March, the Chinese government announced a 500-billion-yuan ($69.4 billion) capital injection during the National People’s Congress to stabilise banks. Major state-owned lenders, including the Bank of China and China Construction Bank, have since unveiled recapitalisation plans. But analysts caution the move may provide only temporary relief. Smaller regional banks, particularly in economically distressed rural areas, remain heavily exposed to bad loans and credit defaults. “All the big state-owned banks can do is bail out smaller ones through mergers and bad loan clean-ups,” said Naoki Tsukioka, Chief Economist at Mizuho Research & Technologies, in an interview with Nikkei Asia. “But a swift and complete solution remains elusive.” Echoes from Japan’s banking collapse? There are growing concerns that China could follow Japan’s path in the 1990s, when bad loan mismanagement led to a decade-long economic stagnation. If Chinese banks continue to underplay asset risks and delay loan clean-ups, they risk triggering a deeper credit freeze that could severely chill the broader economy.

Amid Trump tariff tension, China's banking sector faces risks as 80% of banks report falling net interest margins below profitability.

Over 80 per cent of Chinese banks fall below profit line as Trump tariffs bite

China’s electric vehicle (EV) industry is facing significant challenges as fierce price competition, declining profit margins, and mounting costs put pressure on manufacturers.&nbsp;According to a recent report by J.P. Morgan Chase, average discounts on vehicles reached a record high of 16.8 per cent in April, nearly double the 8.3 per cent discount seen in 2024 overall. This aggressive price war has slashed profit margins for most EV makers to around 10 per cent this year, a significant decline from about 20 per cent just four years ago.The situation is worsened by the fact that only three out of more than 50 EV manufacturers in China—BYD, Li Auto, and Seres—are currently profitable. These companies, along with a handful of others, are navigating a brutally competitive market that has made it more difficult to balance development and marketing costs while maintaining any semblance of profitability.&nbsp;Small players struggling&nbsp;As the price war intensifies, many smaller EV startups are struggling to survive. With a combination of high development costs, increased marketing spend, and shrinking margins, many smaller manufacturers have yet to post a profit. The situation has led analysts to predict consolidation in the sector, with smaller players likely to be either acquired or forced out of the market altogether.In response to the mounting pressure, several of China’s four major publicly traded premium EV makers—including Nio, Xpeng, Geely’s Zeekr unit, and Stellantis-backed Leapmotor—have announced restructuring plans to stem their losses.Despite these financial challenges, the Chinese government has not been able to rein in the price war. Industry officials and the government in Beijing have called for an end to the price war, but the market has failed to respond. Even with calls for price discipline, the brutal discounts continue, and there has been little sign of a significant surge in demand for EVs.&nbsp;Exports provide a potential lifeline&nbsp;While domestic pressures remain severe, Chinese EV manufacturers have found some relief in export markets. The demand for Chinese-made electric cars abroad has been growing steadily, with EVs accounting for 33 per cent of China’s total vehicle exports in the first four months of 2025. This figure is up from around 25 per cent in the past two years. In April, pure electric and plug-in hybrid vehicles accounted for 38 per cent of the country’s outbound shipments.Analysts believe that exports could help shore up profitability for Chinese EV manufacturers in the face of fierce domestic competition.&nbsp;JPMorgan has forecast that Chinese EVs will comprise 80 per cent of China's car market by 2030, a significant leap from the 43 per cent share they held between January and April of 2025. However, even as exports rise, the path to profitability for domestic EV makers remains a challenge.&nbsp;BYD changing gears quickly&nbsp;Amid these financial pressures, BYD, China’s largest electric vehicle assembler, is attempting to stay ahead of the competition by offering advanced autonomous driving features in many of its models, including those priced as low as $9,555. BYD has rolled out its “God’s Eye” advanced driver-assistance system (ADAS) across nearly all its models priced above 100,000 yuan ($13,688), including some of its most affordable vehicles like the Seagull, which starts at just 69,800 yuan.This move, which undercuts competitors such as Tesla, has sparked excitement in the market, as analysts believe it could help BYD differentiate itself and avoid the margins squeeze currently affecting many of its rivals.&nbsp;BYD’s founder, Wang Chuanfu, has even suggested that smart driving features could become as essential as seatbelts or airbags in the future, further cementing the company's position as a leader in the EV sector. However, other manufacturers, including Xpeng, will face tremendous pressure to keep up with these advancements, especially given BYD’s ability to offer such technologies at lower price points.&nbsp;The road ahead for China's EV makers&nbsp;Despite the intense price war and declining margins, there is a clear path forward for Chinese EV makers. Experts believe that exports will be crucial for the future profitability of Chinese manufacturers. Meanwhile, the continued rise of smart driving and technological innovations from companies like BYD could help drive sales in both domestic and international markets.Nevertheless, the short-term outlook for Chinese EV manufacturers remains clouded. With most players in the sector struggling to achieve profitability, the ongoing price war shows little sign of abating, leaving many smaller firms vulnerable. As the market consolidates, it will be interesting to see whether the winners of the EV battle will be those who can offer affordable prices or those who can innovate and bring new technologies to the table.

Average discounts on vehicles in China reached a record high of 16.8 per cent in April, nearly double the 8.3 per cent discount seen in 2024 overall. This aggressive price war has slashed profit margins for most EV makers to around 10 per cent this year.

China’s electric vehicle (EV) industry is facing significant challenges as fierce price competition, declining profit margins, and mounting costs put pressure on manufacturers. According to a recent report by J.P. Morgan Chase, average discounts on vehicles reached a record high of 16.8 per cent in April, nearly double the 8.3 per cent discount seen in 2024 overall. This aggressive price war has slashed profit margins for most EV makers to around 10 per cent this year, a significant decline from about 20 per cent just four years ago. The situation is worsened by the fact that only three out of more than 50 EV manufacturers in China—BYD, Li Auto, and Seres—are currently profitable. These companies, along with a handful of others, are navigating a brutally competitive market that has made it more difficult to balance development and marketing costs while maintaining any semblance of profitability. Small players struggling As the price war intensifies, many smaller EV startups are struggling to survive. With a combination of high development costs, increased marketing spend, and shrinking margins, many smaller manufacturers have yet to post a profit. The situation has led analysts to predict consolidation in the sector, with smaller players likely to be either acquired or forced out of the market altogether. In response to the mounting pressure, several of China’s four major publicly traded premium EV makers—including Nio, Xpeng, Geely’s Zeekr unit, and Stellantis-backed Leapmotor—have announced restructuring plans to stem their losses. Despite these financial challenges, the Chinese government has not been able to rein in the price war. Industry officials and the government in Beijing have called for an end to the price war, but the market has failed to respond. Even with calls for price discipline, the brutal discounts continue, and there has been little sign of a significant surge in demand for EVs. Exports provide a potential lifeline While domestic pressures remain severe, Chinese EV manufacturers have found some relief in export markets. The demand for Chinese-made electric cars abroad has been growing steadily, with EVs accounting for 33 per cent of China’s total vehicle exports in the first four months of 2025. This figure is up from around 25 per cent in the past two years. In April, pure electric and plug-in hybrid vehicles accounted for 38 per cent of the country’s outbound shipments. Analysts believe that exports could help shore up profitability for Chinese EV manufacturers in the face of fierce domestic competition. JPMorgan has forecast that Chinese EVs will comprise 80 per cent of China's car market by 2030, a significant leap from the 43 per cent share they held between January and April of 2025. However, even as exports rise, the path to profitability for domestic EV makers remains a challenge. BYD changing gears quickly Amid these financial pressures, BYD, China’s largest electric vehicle assembler, is attempting to stay ahead of the competition by offering advanced autonomous driving features in many of its models, including those priced as low as $9,555. BYD has rolled out its “God’s Eye” advanced driver-assistance system (ADAS) across nearly all its models priced above 100,000 yuan ($13,688), including some of its most affordable vehicles like the Seagull, which starts at just 69,800 yuan. This move, which undercuts competitors such as Tesla, has sparked excitement in the market, as analysts believe it could help BYD differentiate itself and avoid the margins squeeze currently affecting many of its rivals. BYD’s founder, Wang Chuanfu, has even suggested that smart driving features could become as essential as seatbelts or airbags in the future, further cementing the company's position as a leader in the EV sector. However, other manufacturers, including Xpeng, will face tremendous pressure to keep up with these advancements, especially given BYD’s ability to offer such technologies at lower price points. The road ahead for China's EV makers Despite the intense price war and declining margins, there is a clear path forward for Chinese EV makers. Experts believe that exports will be crucial for the future profitability of Chinese manufacturers. Meanwhile, the continued rise of smart driving and technological innovations from companies like BYD could help drive sales in both domestic and international markets. Nevertheless, the short-term outlook for Chinese EV manufacturers remains clouded. With most players in the sector struggling to achieve profitability, the ongoing price war shows little sign of abating, leaving many smaller firms vulnerable. As the market consolidates, it will be interesting to see whether the winners of the EV battle will be those who can offer affordable prices or those who can innovate and bring new technologies to the table.

Average discounts on vehicles in China reached a record high of 16.8 per cent in April, nearly double the 8.3 per cent discount seen in 2024 overall. This aggressive price war has slashed profit margins for most EV makers to around 10 per cent this year.

Price cuts and declining profitability weigh on China's electric vehicle industry

Beijing has issued a stern warning to companies and individuals who implement recent US restrictions targeting Chinese AI chips, threatening legal consequences as the tech standoff between the two economic superpowers escalates. According to Reuters, China’s Commerce Ministry stated that those enforcing the latest US guidance on chip usage may face “corresponding legal liabilities”. The ministry accused the United States of enacting “discriminatory restrictive measures” against Chinese technology firms.&nbsp;The warning follows new US guidance last week, advising companies against using Ascend AI chips developed by Huawei’s Shenzhen-based unit, citing potential violations of US export control laws. These chips, critical to China’s AI ambitions, are the latest flashpoint in the intensifying tech war between Washington and Beijing. &nbsp;A ministry spokesperson, quoted by Reuters, urged the US to “abide by international economic and trade rules” and to respect other nations’ right to technological progress.&nbsp;US-China chip &amp; AI tensions&nbsp;The legal threat is the latest salvo in a broader power struggle that has seen semiconductors evolve from commercial commodities to national security assets.&nbsp;As reported by the US Department of Commerce, Washington has implemented a series of restrictions aimed at limiting China’s access to advanced chipmaking tools and design software.&nbsp;&nbsp;These steps are part of a national security strategy to contain Beijing’s progress in sensitive areas like artificial intelligence, quantum computing, and cyber warfare.&nbsp;In response, Chinese state media including Xinhua have outlined government-led efforts to boost domestic semiconductor production, with billions of dollars being poured into homegrown alternatives.&nbsp; &nbsp;At the heart of this push lies Huawei’s Ascend chip series, which industry analysts at Counterpoint Research say could rival offerings from US firms like NVIDIA in the coming years.&nbsp;According to Huawei’s product data, the Ascend chips power everything from data centers to deep learning algorithms, making them central to China’s ambition to dominate the AI race. For the US, however, that dominance poses a strategic threat.&nbsp;Trump tariff fiasco&nbsp;&nbsp;The chip showdown unfolds against a backdrop of prolonged trade hostilities. President Donald Trump this year reintroduced steep tariffs on Chinese goods, reigniting fears of another full-blown trade war.&nbsp;As reported by Bloomberg, the United States had imposed a 145 per cent tariff on Chinese electric vehicles, citing unfair subsidies and market distortion. In retaliation, China’s Finance Ministry responded with 125 per cent tariffs on key US exports, including agricultural products and microchips.&nbsp;The escalation led to urgent high-level negotiations in Geneva. According to Bloomberg, the two sides have since agreed to a temporary 90-day truce, effective immediately.&nbsp;&nbsp;The US has cut tariffs on Chinese goods from 145 per cent to 30 per cent, while China has lowered its tariffs on US goods from 125 per cent to 10 per cent.&nbsp;&nbsp;These concessions were brokered during talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.&nbsp;The agreement also includes the suspension of certain non-tariff retaliatory measures.&nbsp;&nbsp;However, tariffs tied to sensitive issues, such as those concerning fentanyl components and farm subsidies remain in effect.&nbsp;What lies ahead?&nbsp; &nbsp;Beijing’s threat of legal retaliation over chip restrictions suggests that even with lowered tariffs, tensions are far from resolved. The latest developments indicate that economic interdependence has taken a backseat to strategic competition. &nbsp;As both sides navigate this 90-day window, analysts warn that failure to reach broader consensus could trigger a renewed cycle of retaliatory measures, disrupting global supply chains, spooking markets, and stalling innovation.&nbsp;With global tech firms and investors watching closely, the outcome of these negotiations may well shape the future of international trade, innovation, and digital power structures for years to come.&nbsp;

Beijing legal warning comes amid the growing tech tensions as US and China agree to slash tariffs in a 90-day truce brokered in Geneva, offering temporary relief to global markets.

Beijing has issued a stern warning to companies and individuals who implement recent US restrictions targeting Chinese AI chips, threatening legal consequences as the tech standoff between the two economic superpowers escalates. According to Reuters, China’s Commerce Ministry stated that those enforcing the latest US guidance on chip usage may face “corresponding legal liabilities”. The ministry accused the United States of enacting “discriminatory restrictive measures” against Chinese technology firms. The warning follows new US guidance last week, advising companies against using Ascend AI chips developed by Huawei’s Shenzhen-based unit, citing potential violations of US export control laws. These chips, critical to China’s AI ambitions, are the latest flashpoint in the intensifying tech war between Washington and Beijing. A ministry spokesperson, quoted by Reuters, urged the US to “abide by international economic and trade rules” and to respect other nations’ right to technological progress. US-China chip & AI tensions The legal threat is the latest salvo in a broader power struggle that has seen semiconductors evolve from commercial commodities to national security assets. As reported by the US Department of Commerce, Washington has implemented a series of restrictions aimed at limiting China’s access to advanced chipmaking tools and design software. These steps are part of a national security strategy to contain Beijing’s progress in sensitive areas like artificial intelligence, quantum computing, and cyber warfare. In response, Chinese state media including Xinhua have outlined government-led efforts to boost domestic semiconductor production, with billions of dollars being poured into homegrown alternatives. At the heart of this push lies Huawei’s Ascend chip series, which industry analysts at Counterpoint Research say could rival offerings from US firms like NVIDIA in the coming years. According to Huawei’s product data, the Ascend chips power everything from data centers to deep learning algorithms, making them central to China’s ambition to dominate the AI race. For the US, however, that dominance poses a strategic threat. Trump tariff fiasco The chip showdown unfolds against a backdrop of prolonged trade hostilities. President Donald Trump this year reintroduced steep tariffs on Chinese goods, reigniting fears of another full-blown trade war. As reported by Bloomberg, the United States had imposed a 145 per cent tariff on Chinese electric vehicles, citing unfair subsidies and market distortion. In retaliation, China’s Finance Ministry responded with 125 per cent tariffs on key US exports, including agricultural products and microchips. The escalation led to urgent high-level negotiations in Geneva. According to Bloomberg, the two sides have since agreed to a temporary 90-day truce, effective immediately. The US has cut tariffs on Chinese goods from 145 per cent to 30 per cent, while China has lowered its tariffs on US goods from 125 per cent to 10 per cent. These concessions were brokered during talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. The agreement also includes the suspension of certain non-tariff retaliatory measures. However, tariffs tied to sensitive issues, such as those concerning fentanyl components and farm subsidies remain in effect. What lies ahead? Beijing’s threat of legal retaliation over chip restrictions suggests that even with lowered tariffs, tensions are far from resolved. The latest developments indicate that economic interdependence has taken a backseat to strategic competition. As both sides navigate this 90-day window, analysts warn that failure to reach broader consensus could trigger a renewed cycle of retaliatory measures, disrupting global supply chains, spooking markets, and stalling innovation. With global tech firms and investors watching closely, the outcome of these negotiations may well shape the future of international trade, innovation, and digital power structures for years to come.

China has threatened legal retaliation against companies complying with US chip curbs, signalling a fresh flashpoint in the US-China tech conflict.

China threatens legal action over US chip curbs amid 90-day tariff truce

Doctors in China have revealed that an eight-year-old girl died after the COVID-19 virus reached her brain. Sharing the story in a medical journal, they stated that the girl suffered a rare, deadly side effect of the virus, which gripped the world for nearly two years and is now witnessing a resurgence.&nbsp;The doctors stated that the girl initially developed a fever and suffered multiple seizures. She also had a headache, a bumpy rash on her arms, legs and torso, and was vomiting. However, because of a lack of an "identifiable trigger", she wasn't tested for COVID-19. But her condition worsened, and she had to be intubated to help her breathe after she was "frothing at the mouth" and her "limbs stiffened and shook".&nbsp;Also Read: <a href="https://www.wionews.com/world/covid-cases-surge-in-hong-kong-singapore-and-china-india-ramps-up-vigil-1747759362146">Covid cases surge in Hong Kong, Singapore, and China. India ramps up vigil</a>&nbsp;Tests conducted at the Guangzhou Women and Children's Medical Centre showed that the girl was suffering from a rare brain disorder called acute necrotising encephalopathy (ANE). The "likely" cause was a COVID-19 infection, which came back positive, the doctors stated in the journal BMC Infectious Diseases. Nine days after her first symptoms emerged, the girl was declared brain dead and was taken off life support.&nbsp;Studies have shown that COVID-19 can reach the brain and cause neurological issues, Mail Online reported. Meanwhile, doctors at Guangzhou Women and Children's Medical Centre said doctors are still trying to understand the best way to treat children with COVID-19 who suffer "rapid-onset neurological decline".&nbsp;They also found traces of Rotavirus in her stools and blood. But the doctors stated in the journal that the COVID-19 virus was a more likely cause of the neurological complications.&nbsp;"Despite aggressive therapy, the patient remained in profound coma without sedation," the medics added.&nbsp;<h2>What is Acute necrotising encephalopathy?</h2>&nbsp;The condition the girl suffered happens when the body's immune system overreacts to a common virus like COVID-19 or the flu. The body suffers internal inflammation, and tissue throughout the body is damaged. When this happens in the brain, toxins and bacteria enter it and the kill tissue. The brain slowly swells, and cells die.&nbsp;Doctors say it is incredibly rare, and only about a hundred cases have been documented in medical literature.&nbsp;

The doctors stated that the girl initially developed a fever and suffered multiple seizures. She also had a headache, a bumpy rash on her arms, legs and torso, and was vomiting.

Doctors in China have revealed that an eight-year-old girl died after the COVID-19 virus reached her brain. Sharing the story in a medical journal, they stated that the girl suffered a rare, deadly side effect of the virus, which gripped the world for nearly two years and is now witnessing a resurgence. The doctors stated that the girl initially developed a fever and suffered multiple seizures. She also had a headache, a bumpy rash on her arms, legs and torso, and was vomiting. However, because of a lack of an "identifiable trigger", she wasn't tested for COVID-19. But her condition worsened, and she had to be intubated to help her breathe after she was "frothing at the mouth" and her "limbs stiffened and shook". Also Read: Covid cases surge in Hong Kong, Singapore, and China. India ramps up vigil Tests conducted at the Guangzhou Women and Children's Medical Centre showed that the girl was suffering from a rare brain disorder called acute necrotising encephalopathy (ANE). The "likely" cause was a COVID-19 infection, which came back positive, the doctors stated in the journal BMC Infectious Diseases. Nine days after her first symptoms emerged, the girl was declared brain dead and was taken off life support. Studies have shown that COVID-19 can reach the brain and cause neurological issues, Mail Online reported. Meanwhile, doctors at Guangzhou Women and Children's Medical Centre said doctors are still trying to understand the best way to treat children with COVID-19 who suffer "rapid-onset neurological decline". They also found traces of Rotavirus in her stools and blood. But the doctors stated in the journal that the COVID-19 virus was a more likely cause of the neurological complications. "Despite aggressive therapy, the patient remained in profound coma without sedation," the medics added. What is Acute necrotising encephalopathy? The condition the girl suffered happens when the body's immune system overreacts to a common virus like COVID-19 or the flu. The body suffers internal inflammation, and tissue throughout the body is damaged. When this happens in the brain, toxins and bacteria enter it and the kill tissue. The brain slowly swells, and cells die. Doctors say it is incredibly rare, and only about a hundred cases have been documented in medical literature.

The doctors stated that the girl initially developed a fever and suffered multiple seizures. She also had a headache, a bumpy rash on her arms, legs and torso, and was vomiting.

COVID-19 virus reaches 8-year-old girl's brain, putting her in coma before killing her

Beijing condemned on Wednesday new US warnings on the use of AI chips made in China, vowing it would take steps against "bullying" efforts to restrict access to high-tech semiconductors and supply chains.Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI.US President Donald Trump's administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence.Some US lawmakers feared the restrictions would have incentivised countries to go to China for AI chips, spurring the superpower's development of state-of-the-art technology.But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei's Ascend chips, would put them at risk of violating US export controls.In a statement Wednesday, Beijing's commerce ministry described the warnings as "typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain".China accused the US of "abusing export controls to suppress and contain China"."These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," the commerce ministry said.It also warned that "any organisation or individual that enforces or assists in enforcing such measures" could be in violation of Chinese law.And it vowed to take "firm steps to safeguard its legitimate rights and interests" in response.The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models.The commerce department said its policy was aimed at sharing American AI technology "with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries".Previous US rules divided countries into three tiers, each with its own level of restrictions.Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive.Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.

"These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," said China's commerce ministry.

Beijing condemned on Wednesday new US warnings on the use of AI chips made in China, vowing it would take steps against "bullying" efforts to restrict access to high-tech semiconductors and supply chains. Washington has sought in recent years to curb exports of state-of-the-art chips to China, concerned that they could be used to advance Beijing's military systems and otherwise undermine American dominance in AI. US President Donald Trump's administration last week rescinded some export controls on advanced computing semiconductors, answering calls by countries that said they were being shut out from crucial technology needed to develop artificial intelligence. Some US lawmakers feared the restrictions would have incentivised countries to go to China for AI chips, spurring the superpower's development of state-of-the-art technology. But Washington also unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically tech giant Huawei's Ascend chips, would put them at risk of violating US export controls. In a statement Wednesday, Beijing's commerce ministry described the warnings as "typical unilateral bullying and protectionism, which seriously undermine the stability of the global semiconductor industry chain and supply chain". China accused the US of "abusing export controls to suppress and contain China". "These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," the commerce ministry said. It also warned that "any organisation or individual that enforces or assists in enforcing such measures" could be in violation of Chinese law. And it vowed to take "firm steps to safeguard its legitimate rights and interests" in response. The United States warned last week about the potential consequences of allowing US AI chips to be used for training Chinese AI models. The commerce department said its policy was aimed at sharing American AI technology "with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries". Previous US rules divided countries into three tiers, each with its own level of restrictions. Top-tier countries like Japan and South Korea faced no export restrictions, while countries in the second tier, which included Mexico and Portugal, saw a cap on the chips they could receive. Chipmakers including Nvidia and AMD lobbied against the tiered restrictions and saw their share prices rise when the Trump administration indicated it would rethink the rule.

"These actions seriously harm the legitimate rights and interests of Chinese enterprises and endanger China's development interests," said China's commerce ministry.

China slams US over chip warning, claims America 'abusing export controls to suppress and contain' Beijing

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