<div>As the United States and China intensify their economic rivalry, Europe finds itself increasingly caught in the middle&mdash;vulnerable to becoming a dumping ground for Chinese goods shut out of the American market. Despite the European Union&rsquo;s (EU) efforts to balance relations with both superpowers, China&rsquo;s rapidly growing trade surplus with the EU is triggering alarm across the continent and exposing cracks in Europe&rsquo;s open-market model.</div>
<div>As the United States and China escalate their economic rivalry and with no long-term certain solution in sight, Europe finds itself caught in the crossfire, increasingly vulnerable to becoming a fallback market for Chinese goods squeezed out of the US economy. Despite the European Union&rsquo;s (EU) efforts to maintain balanced relations with both economic giants, China&rsquo;s growing trade surplus with the EU is raising alarm across the continent.</div>
<div>In the first four months of 2025 alone, China&rsquo;s trade surplus with the EU surged to a record $90 billion, underlining the shift in global trade patterns as the US imposed reciprocal tariffs on dozens of countries. With American levies on Chinese goods still up to 30 percentage points higher than they were at the start of this year, much of China&rsquo;s excess production is being increasingly redirected toward Europe&mdash;some through Southeast Asia and Latin America.</div>
<div>According to a report by Bloomberg, Maxime Darmet, senior economist at Allianz Trade, said, &ldquo;European and non-US markets are going to see an increase in Chinese shipments.&rdquo;</div>
<div>&ldquo;China will want to keep global market share at a high level, so will try to increase share in other markets,&rdquo; Darmet added.</div>
<h2>The new trade battlefield</h2>
<div>The shifting trade tides are testing the EU&rsquo;s core principles of economic openness. As Washington embraced a more protectionist stance, Brussels had to recalibrate its trade strategy. The EU has responded with targeted measures&mdash;such as tariffs on Chinese electric vehicles (EVs)&mdash;but has so far resisted a full-scale trade war.</div>
<div>At the heart of the trade imbalance lies China&rsquo;s aggressive industrial policy. State subsidies, particularly in the electric vehicle sector, have helped Chinese companies like BYD undercut competitors around the world. In 2024, BYD sold 4.27 million new vehicles globally, a 41 per cent jump from the previous year. Of those, 1.76 million were fully electric, putting BYD just behind Tesla in global EV sales. China&rsquo;s plug-in hybrid sales also soared 72.83 per cent to 2.49 million units.</div>
<div>The European Commission&rsquo;s move to impose duties on these heavily subsidised imports in late 2024 sparked outrage in Beijing. In retaliation, China launched an anti-dumping investigation into European dairy products, including cheese and milk&mdash;an echo of past tit-for-tat trade tensions and a sign that hostilities are broadening beyond vehicles and technology.</div>
<div>Despite these disputes, China remains the EU&rsquo;s largest trading partner, and the EU is China's second-largest. More than half of EU imports from China consist of mechanical appliances and electrical equipment, while vehicles and aircraft account for less than 6 per cent. On the export side, mechanical appliances and electrical equipment also lead, followed by vehicles and pharmaceuticals.</div>
<h2>Germany and France at the forefront of the storm</h2>
<div>Germany has been particularly impacted by the changing trade dynamics. The bilateral trade relationship with China, once marked by a German surplus, has flipped dramatically. In 2020, China had a trade deficit of over $18 billion with Germany. By 2024, that had reversed to a $12 billion surplus, and if current trends hold, China&rsquo;s surplus with Germany could exceed $25 billion in 2025.</div>
<div>One major factor has been the rapid rise in Chinese car exports, including both EVs and conventional models, while German exports to China, especially cars, have declined. Despite EU tariffs curbing EV imports, Chinese automakers have ramped up deliveries of hybrids and combustion-engine vehicles, maintaining their momentum in the European market.</div>
<div>France, too, is in the spotlight as it prepares for high-level talks with Chinese Vice Premier He Lifeng. The meeting comes after a temporary 90-day truce between Washington and Beijing, which lowered some tariffs but left many trade barriers firmly in place. European markets welcomed the pause, but economists remain wary, warning that the underlying tensions are far from resolved.</div>
<div>Meanwhile, the EU&rsquo;s trade chief Maros Sefcovic acknowledged the growing concerns last week, stating that the bloc is &ldquo;monitoring possible risks of trade diversion&rdquo;. Initial assessments are expected in mid-May, with the topic likely to dominate the agenda at Thursday&rsquo;s meeting of EU trade ministers in Brussels.</div>
<h2>Currency and competitiveness</h2>
<div>Further complicating matters is the recent weakening of the Chinese yuan, which in April 2025 hit its lowest level against the euro in more than a decade. This currency slump makes Chinese exports even more attractive to European buyers, increasing competitive pressure on domestic producers already battling deflation and sluggish demand.</div>
<div>As imports from China swell, EU exports to China are faltering. Between January 2023 and December 2024, EU exports to China dropped 12.5 per cent, while imports from China decreased by just 4.9 per cent. This decline in European exports contrasts sharply with a 3 per cent increase in exports to other non-EU countries during the same period.</div>
<div>Monthly trade data reinforces the trend: EU exports to China fell from &euro;19.2 billion ($21.5 billion) in January 2023 to &euro;16.8 billion ($18.8 billion) in December 2024, with the trade deficit peaking at &euro;29 billion ($32.5 million) in August 2024. Though imports from China also declined slightly, the overall deficit remains steep, underscoring Europe&rsquo;s dependence on Chinese goods amid weakening demand for European products in China.</div>
<h2>More protectionism likely?</h2>
<div>The evolving trade conflict has already altered the strategy of European capitals. Policymakers are increasingly under pressure to safeguard their industries&mdash;not only from Chinese competition but also from the collateral damage of US policies aimed squarely at Beijing.</div>
<div>With the global trade system becoming more fragmented, economists predict that Europe will continue to introduce more non-tariff barriers and subsidies for critical industries. The European Commission is expected to intensify efforts to prevent unfair competition, especially in sectors like automotive, green technology, and advanced manufacturing.</div>
<div>Whether Europe can maintain its identity as a bastion of free trade while protecting its industrial base in this era of geopolitical rivalry remains one of the defining challenges of the post-pandemic global economy.</div>

Business & Economy: In the first four months of 2025, China’s trade surplus with the EU surged to a record $90 billion, underlining the shift in global trade patterns

As the United States and China intensify their economic rivalry, Europe finds itself increasingly caught in the middle—vulnerable to becoming a dumping ground for Chinese goods shut out of the American market. Despite the European Union’s (EU) efforts to balance relations with both superpowers, China’s rapidly growing trade surplus with the EU is triggering alarm across the continent and exposing cracks in Europe’s open-market model. As the United States and China escalate their economic rivalry and with no long-term certain solution in sight, Europe finds itself caught in the crossfire, increasingly vulnerable to becoming a fallback market for Chinese goods squeezed out of the US economy. Despite the European Union’s (EU) efforts to maintain balanced relations with both economic giants, China’s growing trade surplus with the EU is raising alarm across the continent. In the first four months of 2025 alone, China’s trade surplus with the EU surged to a record $90 billion, underlining the shift in global trade patterns as the US imposed reciprocal tariffs on dozens of countries. With American levies on Chinese goods still up to 30 percentage points higher than they were at the start of this year, much of China’s excess production is being increasingly redirected toward Europe—some through Southeast Asia and Latin America. According to a report by Bloomberg, Maxime Darmet, senior economist at Allianz Trade, said, “European and non-US markets are going to see an increase in Chinese shipments.” “China will want to keep global market share at a high level, so will try to increase share in other markets,” Darmet added. The new trade battlefield The shifting trade tides are testing the EU’s core principles of economic openness. As Washington embraced a more protectionist stance, Brussels had to recalibrate its trade strategy. The EU has responded with targeted measures—such as tariffs on Chinese electric vehicles (EVs)—but has so far resisted a full-scale trade war. At the heart of the trade imbalance lies China’s aggressive industrial policy. State subsidies, particularly in the electric vehicle sector, have helped Chinese companies like BYD undercut competitors around the world. In 2024, BYD sold 4.27 million new vehicles globally, a 41 per cent jump from the previous year. Of those, 1.76 million were fully electric, putting BYD just behind Tesla in global EV sales. China’s plug-in hybrid sales also soared 72.83 per cent to 2.49 million units. The European Commission’s move to impose duties on these heavily subsidised imports in late 2024 sparked outrage in Beijing. In retaliation, China launched an anti-dumping investigation into European dairy products, including cheese and milk—an echo of past tit-for-tat trade tensions and a sign that hostilities are broadening beyond vehicles and technology. Despite these disputes, China remains the EU’s largest trading partner, and the EU is China's second-largest. More than half of EU imports from China consist of mechanical appliances and electrical equipment, while vehicles and aircraft account for less than 6 per cent. On the export side, mechanical appliances and electrical equipment also lead, followed by vehicles and pharmaceuticals. Germany and France at the forefront of the storm Germany has been particularly impacted by the changing trade dynamics. The bilateral trade relationship with China, once marked by a German surplus, has flipped dramatically. In 2020, China had a trade deficit of over $18 billion with Germany. By 2024, that had reversed to a $12 billion surplus, and if current trends hold, China’s surplus with Germany could exceed $25 billion in 2025. One major factor has been the rapid rise in Chinese car exports, including both EVs and conventional models, while German exports to China, especially cars, have declined. Despite EU tariffs curbing EV imports, Chinese automakers have ramped up deliveries of hybrids and combustion-engine vehicles, maintaining their momentum in the European market. France, too, is in the spotlight as it prepares for high-level talks with Chinese Vice Premier He Lifeng. The meeting comes after a temporary 90-day truce between Washington and Beijing, which lowered some tariffs but left many trade barriers firmly in place. European markets welcomed the pause, but economists remain wary, warning that the underlying tensions are far from resolved. Meanwhile, the EU’s trade chief Maros Sefcovic acknowledged the growing concerns last week, stating that the bloc is “monitoring possible risks of trade diversion”. Initial assessments are expected in mid-May, with the topic likely to dominate the agenda at Thursday’s meeting of EU trade ministers in Brussels. Currency and competitiveness Further complicating matters is the recent weakening of the Chinese yuan, which in April 2025 hit its lowest level against the euro in more than a decade. This currency slump makes Chinese exports even more attractive to European buyers, increasing competitive pressure on domestic producers already battling deflation and sluggish demand. As imports from China swell, EU exports to China are faltering. Between January 2023 and December 2024, EU exports to China dropped 12.5 per cent, while imports from China decreased by just 4.9 per cent. This decline in European exports contrasts sharply with a 3 per cent increase in exports to other non-EU countries during the same period. Monthly trade data reinforces the trend: EU exports to China fell from €19.2 billion ($21.5 billion) in January 2023 to €16.8 billion ($18.8 billion) in December 2024, with the trade deficit peaking at €29 billion ($32.5 million) in August 2024. Though imports from China also declined slightly, the overall deficit remains steep, underscoring Europe’s dependence on Chinese goods amid weakening demand for European products in China. More protectionism likely? The evolving trade conflict has already altered the strategy of European capitals. Policymakers are increasingly under pressure to safeguard their industries—not only from Chinese competition but also from the collateral damage of US policies aimed squarely at Beijing. With the global trade system becoming more fragmented, economists predict that Europe will continue to introduce more non-tariff barriers and subsidies for critical industries. The European Commission is expected to intensify efforts to prevent unfair competition, especially in sectors like automotive, green technology, and advanced manufacturing. Whether Europe can maintain its identity as a bastion of free trade while protecting its industrial base in this era of geopolitical rivalry remains one of the defining challenges of the post-pandemic global economy.

US-China trade rift may turn Europe into a dumping ground for Chinese goods

In a significant diplomatic and economic development, the United States and China have announced &ldquo;substantial progress&rdquo; in trade talks held in Geneva on May 10&ndash;11, raising hopes of de-escalation in a tariff war that has rattled global markets for months.
Chinese Vice Premier He Lifeng, leading Beijing&rsquo;s delegation, said the talks with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer were &ldquo;candid, in-depth, and constructive,&rdquo; according to Reuters. He added that both sides agreed to establish a formal consultation mechanism to address economic and trade issues of mutual concern.
Bessent told Reuters that President Donald Trump had been &ldquo;fully informed&rdquo; of the discussions and that a detailed joint statement would be released on Monday. &ldquo;We made substantial progress&hellip; in the spirit of cooperation, shared interest, and mutual respect,&rdquo; he said.
<h2 class="x_elementToProof">Trump&rsquo;s tariff saga</h2>
This diplomatic thaw follows President Donald Trump&rsquo;s unexpected escalation earlier this year, when he slapped a 145 per cent tariff on a wide swath of Chinese imports, ranging from steel and electric vehicles to electronics, textiles, and rare earth metals. The US administration justified the move by declaring a national economic emergency, citing the ballooning $1.2 trillion trade deficit with China, according to the US Department of Commerce. In swift retaliation, China&rsquo;s Ministry of Commerce imposed reciprocal tariffs on key American exports, including agricultural produce, semiconductors, industrial machinery, and pharmaceuticals. While Beijing insisted it did not seek a trade war, Vice Premier He told Reuters that China was &ldquo;prepared to fight to the end.&rdquo;
The consequences were immediate and severe. Bloomberg Economics estimates that nearly $300 billion in cross-border trade was wiped out in just the first quarter of 2025, fuelling recession fears across global markets. The ripple effects hit multiple sectors hard. Technology giants such as Apple, NVIDIA, and Tesla suffered increased production costs and delays, with S&amp;P Global reporting that over 60 per cent of US electronics firms experienced severe supply chain disruptions by March 2025.&nbsp;
In the automotive sector, tit-for-tat tariffs on vehicles and components crushed exports on both sides, prompting several global manufacturers to relocate operations, according to Automotive News China. Even average American consumers weren&rsquo;t spared &mdash; prices for electronics, apparel, and furniture surged, much of it imported from China. In its April forecast, the International Monetary Fund warned that prolonged tariffs could push global inflation up by as much as 1.5 per cent in 2025.
<h2 class="x_elementToProof">A step towards stability?</h2>
Despite deep-rooted differences, both delegations signalled optimism. &ldquo;This meeting has laid the foundation for resolving differences through equal-footed dialogue,&rdquo; He Lifeng said, as stated in Reuters. He also noted that China was ready to work with the US in expanding the list of cooperative outcomes and &ldquo;making the pie of mutual benefits bigger.&rdquo;
Greer acknowledged the tough negotiating style of the Chinese side and said the pace of consensus showed that &ldquo;perhaps the differences were not as great as previously thought,&rdquo; told to Reuters.
Both leaders praised the Swiss government for its hospitality. &ldquo;The venue helped facilitate the productivity we achieved,&rdquo; said Bessent, adding that further consultations would follow soon.
<h2 class="x_elementToProof">What lies ahead?</h2>
According to Reuters, a joint statement outlining initial agreements and next steps is expected on Monday. Sources familiar with the talks say both sides have considered rolling back a portion of the February tariffs in exchange for mutual concessions on digital trade, intellectual property protections, and agricultural imports.
While it&rsquo;s too early to declare the trade war over, analysts see this weekend&rsquo;s progress as a pivotal turn. &ldquo;We may be witnessing the beginning of a recalibration in global trade dynamics,&rdquo; said Alicia Garc&iacute;a Herrero, Chief Economist for Asia Pacific at Natixis, quoted by Bloomberg.
The coming days will be crucial as the world waits for the official roadmap. For now, Geneva has offered a glimmer of hope &mdash; that diplomacy, not tariffs, may once again guide the world&rsquo;s two largest economies.

Business & Economy: US Treasury Secretary Scott Bessent confirmed that President Trump was fully briefed, anticipating a detailed joint statement to be unveiled on Monday.

In a significant diplomatic and economic development, the United States and China have announced “substantial progress” in trade talks held in Geneva on May 10–11, raising hopes of de-escalation in a tariff war that has rattled global markets for months. Chinese Vice Premier He Lifeng, leading Beijing’s delegation, said the talks with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer were “candid, in-depth, and constructive,” according to Reuters. He added that both sides agreed to establish a formal consultation mechanism to address economic and trade issues of mutual concern. Bessent told Reuters that President Donald Trump had been “fully informed” of the discussions and that a detailed joint statement would be released on Monday. “We made substantial progress… in the spirit of cooperation, shared interest, and mutual respect,” he said. Trump’s tariff saga This diplomatic thaw follows President Donald Trump’s unexpected escalation earlier this year, when he slapped a 145 per cent tariff on a wide swath of Chinese imports, ranging from steel and electric vehicles to electronics, textiles, and rare earth metals. The US administration justified the move by declaring a national economic emergency, citing the ballooning $1.2 trillion trade deficit with China, according to the US Department of Commerce. In swift retaliation, China’s Ministry of Commerce imposed reciprocal tariffs on key American exports, including agricultural produce, semiconductors, industrial machinery, and pharmaceuticals. While Beijing insisted it did not seek a trade war, Vice Premier He told Reuters that China was “prepared to fight to the end.” The consequences were immediate and severe. Bloomberg Economics estimates that nearly $300 billion in cross-border trade was wiped out in just the first quarter of 2025, fuelling recession fears across global markets. The ripple effects hit multiple sectors hard. Technology giants such as Apple, NVIDIA, and Tesla suffered increased production costs and delays, with S&P Global reporting that over 60 per cent of US electronics firms experienced severe supply chain disruptions by March 2025. In the automotive sector, tit-for-tat tariffs on vehicles and components crushed exports on both sides, prompting several global manufacturers to relocate operations, according to Automotive News China. Even average American consumers weren’t spared — prices for electronics, apparel, and furniture surged, much of it imported from China. In its April forecast, the International Monetary Fund warned that prolonged tariffs could push global inflation up by as much as 1.5 per cent in 2025. A step towards stability? Despite deep-rooted differences, both delegations signalled optimism. “This meeting has laid the foundation for resolving differences through equal-footed dialogue,” He Lifeng said, as stated in Reuters. He also noted that China was ready to work with the US in expanding the list of cooperative outcomes and “making the pie of mutual benefits bigger.” Greer acknowledged the tough negotiating style of the Chinese side and said the pace of consensus showed that “perhaps the differences were not as great as previously thought,” told to Reuters. Both leaders praised the Swiss government for its hospitality. “The venue helped facilitate the productivity we achieved,” said Bessent, adding that further consultations would follow soon. What lies ahead? According to Reuters, a joint statement outlining initial agreements and next steps is expected on Monday. Sources familiar with the talks say both sides have considered rolling back a portion of the February tariffs in exchange for mutual concessions on digital trade, intellectual property protections, and agricultural imports. While it’s too early to declare the trade war over, analysts see this weekend’s progress as a pivotal turn. “We may be witnessing the beginning of a recalibration in global trade dynamics,” said Alicia García Herrero, Chief Economist for Asia Pacific at Natixis, quoted by Bloomberg. The coming days will be crucial as the world waits for the official roadmap. For now, Geneva has offered a glimmer of hope — that diplomacy, not tariffs, may once again guide the world’s two largest economies.

US-China trade talks mark ‘substantial progress’ following months of tariff tensions

<div class="x_elementToProof" data-olk-copy-source="MessageBody">In a provocative move ahead of crucial trade talks in Geneva, US President Donald Trump announced that an 80 per cent tariff on Chinese goods &ldquo;seems right,&rdquo; marking the first time he has floated a specific figure since his administration imposed sweeping levies of up to 145 per cent on imports from China. The statement, posted on Trump&rsquo;s Truth Social account on May 9, comes just hours before US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer meet Chinese economic chief He Lifeng in Switzerland, in what officials are calling a tentative first step toward resolving deep-rooted trade tensions between the world&rsquo;s two largest economies.</div>
<div class="x_elementToProof" data-olk-copy-source="MessageBody"></div>
<div class="x_elementToProof">&ldquo;China should open up its market to the USA,&nbsp;it would be so good for them!!! Closed markets don&rsquo;t work anymore!!!&rdquo; Trump wrote. He added, &ldquo;80% tariff on China seems right. Up to Scott B,&rdquo; signalling&nbsp;his delegation to explore the feasibility of this new benchmark. According to Reuters, this is Trump&rsquo;s first public suggestion of a specific alternative to the existing tariff structure, which has drawn criticism from industry leaders and allies alike for disrupting global supply chains. Financial markets responded swiftly, with US stock futures dipping and the dollar weakening in Europe before stabilising later in the day.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Speaking from the Oval Office on May 9, Trump said the US would maintain a baseline tariff of 10 per cent on imports even after trade deals are struck, allowing exemptions only for countries offering &ldquo;significant trade terms.&rdquo; He suggested that new trade agreements are on the horizon, stating, &ldquo;We always have a baseline of 10%,&rdquo; and hinted that Bessent had been given room to negotiate down from the current tariff ceiling. The Geneva meeting represents the first face-to-face encounter between US and Chinese trade officials since Trump returned to the White House.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Since taking office for a second term, Trump has escalated his trade offensive, slapping 145 per cent average tariffs on Chinese imports, adding to the tariffs imposed during his first term and those maintained by the Biden administration. In retaliation, China has raised its tariffs on US goods to as high as 125 per cent and imposed export restrictions on rare earth elements vital to sectors like defence, electronics, and green energy. Beijing has also targeted high-profile American exports such as soybeans and liquefied natural gas, intensifying the economic standoff.</div>
<h2 class="x_elementToProof">Geneva Talks: First step or false start?</h2>
<div class="x_elementToProof">The US-China trade talks in Geneva are taking place today, Saturday, May 10, 2025. This meeting marks the first direct negotiation between top officials from both nations since Trump returned to the presidency. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are representing Washington, while Chinese Vice Premier He Lifeng is leading Beijing&rsquo;s delegation. The talks aim to reopen stalled economic dialogue without preconditions, according to the US Treasury Department&mdash;a move interpreted by analysts as a cautious attempt to de-escalate.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">However, the context remains tense. Trump&rsquo;s public push for an 80 per cent tariff, despite being a step down from the current 145 per cent, may complicate diplomatic efforts. China&rsquo;s reciprocal tariffs of up to 125 per cent and strategic export curbs on rare earth materials continue to set a combative tone. Whether today&rsquo;s talks lead to substantive progress or serve as a diplomatic reset remains uncertain.</div>
<h2 class="x_elementToProof">US-China trade dependency</h2>
<div class="x_elementToProof">Despite the political posturing, economic data paints a picture of deep interdependence between the two superpowers. According to the US Census Bureau, in 2023, the US imported $427 billion worth of goods from China, making it the country&rsquo;s third-largest trading partner after Mexico and Canada. At the same time, US exports to China totalled&nbsp;$148 billion, with key outbound products including soybeans, semiconductors, aircraft, and LNG.</div>
<div class="x_elementToProof">From Beijing&rsquo;s side, the US was China&rsquo;s second-largest export market in 2023, accounting for around 15 per cent of its total exports, according to China&rsquo;s General Administration of Customs. This mutual reliance complicates any attempt at economic decoupling.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Whether Geneva will mark a turning point or simply another headline in the US-China economic standoff remains to be seen. But what is clear is that decisions taken in this weekend&rsquo;s meeting could have far-reaching implications for global trade flows, supply chains, and investor confidence.</div>
<div class="x_elementToProof"></div>

Business & Economy: Trump makes a huge statement ahead of the US-China critical trade meeting in Switzerland on May 10.

In a provocative move ahead of crucial trade talks in Geneva, US President Donald Trump announced that an 80 per cent tariff on Chinese goods “seems right,” marking the first time he has floated a specific figure since his administration imposed sweeping levies of up to 145 per cent on imports from China. The statement, posted on Trump’s Truth Social account on May 9, comes just hours before US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer meet Chinese economic chief He Lifeng in Switzerland, in what officials are calling a tentative first step toward resolving deep-rooted trade tensions between the world’s two largest economies. “China should open up its market to the USA, it would be so good for them!!! Closed markets don’t work anymore!!!” Trump wrote. He added, “80% tariff on China seems right. Up to Scott B,” signalling his delegation to explore the feasibility of this new benchmark. According to Reuters, this is Trump’s first public suggestion of a specific alternative to the existing tariff structure, which has drawn criticism from industry leaders and allies alike for disrupting global supply chains. Financial markets responded swiftly, with US stock futures dipping and the dollar weakening in Europe before stabilising later in the day. Speaking from the Oval Office on May 9, Trump said the US would maintain a baseline tariff of 10 per cent on imports even after trade deals are struck, allowing exemptions only for countries offering “significant trade terms.” He suggested that new trade agreements are on the horizon, stating, “We always have a baseline of 10%,” and hinted that Bessent had been given room to negotiate down from the current tariff ceiling. The Geneva meeting represents the first face-to-face encounter between US and Chinese trade officials since Trump returned to the White House. Since taking office for a second term, Trump has escalated his trade offensive, slapping 145 per cent average tariffs on Chinese imports, adding to the tariffs imposed during his first term and those maintained by the Biden administration. In retaliation, China has raised its tariffs on US goods to as high as 125 per cent and imposed export restrictions on rare earth elements vital to sectors like defence, electronics, and green energy. Beijing has also targeted high-profile American exports such as soybeans and liquefied natural gas, intensifying the economic standoff. Geneva Talks: First step or false start? The US-China trade talks in Geneva are taking place today, Saturday, May 10, 2025. This meeting marks the first direct negotiation between top officials from both nations since Trump returned to the presidency. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are representing Washington, while Chinese Vice Premier He Lifeng is leading Beijing’s delegation. The talks aim to reopen stalled economic dialogue without preconditions, according to the US Treasury Department—a move interpreted by analysts as a cautious attempt to de-escalate. However, the context remains tense. Trump’s public push for an 80 per cent tariff, despite being a step down from the current 145 per cent, may complicate diplomatic efforts. China’s reciprocal tariffs of up to 125 per cent and strategic export curbs on rare earth materials continue to set a combative tone. Whether today’s talks lead to substantive progress or serve as a diplomatic reset remains uncertain. US-China trade dependency Despite the political posturing, economic data paints a picture of deep interdependence between the two superpowers. According to the US Census Bureau, in 2023, the US imported $427 billion worth of goods from China, making it the country’s third-largest trading partner after Mexico and Canada. At the same time, US exports to China totalled $148 billion, with key outbound products including soybeans, semiconductors, aircraft, and LNG. From Beijing’s side, the US was China’s second-largest export market in 2023, accounting for around 15 per cent of its total exports, according to China’s General Administration of Customs. This mutual reliance complicates any attempt at economic decoupling. Whether Geneva will mark a turning point or simply another headline in the US-China economic standoff remains to be seen. But what is clear is that decisions taken in this weekend’s meeting could have far-reaching implications for global trade flows, supply chains, and investor confidence.

Trump advises Bessent to keep the 10% tariff baseline ahead of the US-China Geneva talks

China's exports surged by 8.1 per cent year-on-year in April, surpassing economists&rsquo; expectations of a modest 2 per cent growth.
The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China&rsquo;s economy.
Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent&mdash;with cumulative duties on some goods soaring to a whopping 245 per cent.
Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US.
Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China&rsquo;s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China&rsquo;s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent.
The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships.
China&rsquo;s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March.
&nbsp;
<h2 dir="ltr">The upcoming trade talks</h2>
The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war.
The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March.
While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation.
&nbsp;
<h2 dir="ltr">Broader impact on the Chinese economy</h2>
Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs.
In April, China&rsquo;s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022.
There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs&mdash;about 2 per cent of its workforce&mdash;in sectors tied to US-bound goods.
The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave.
To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.

Business & Economy: China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth.

China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth. The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China’s economy. Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent—with cumulative duties on some goods soaring to a whopping 245 per cent. Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US. Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China’s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China’s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent. The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships. China’s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March. The upcoming trade talks The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war. The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March. While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation. Broader impact on the Chinese economy Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs. In April, China’s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022. There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs—about 2 per cent of its workforce—in sectors tied to US-bound goods. The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave. To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.

China's exports surge amid decline in shipments to the US as trade war intensifies

China&rsquo;s central bank is taking steps to stimulate the economy by cutting key policy rates in a bid to boost growth amid growing economic uncertainty and trade woes.
The People's Bank of China (PBOC) said that it would lower the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent from 1.50 per cent, according to an online statement, taking effect from May 08.
The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction in the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools. The PBOC previously lowered the seven-day reverse repo rate by 20 basis points (bps) in September 2024.
The central bank will also lower the reserve requirement ratio (RRR), which determines the amount of cash banks must hold in reserves, by 50 basis points, which will give additional liquidity of 1000 billion yuan ($138.6 billion) to the market.
PBOC Governor Pan Gongsheng reiterated that officials will implement a &ldquo;moderately loose&rdquo; monetary policy, which will translate into ample liquidity and ensure funding with relatively low financing costs. The RRR cut can enhance the stability of bank liabilities, he said.
This move is notable as China has focused more on stabilising its currency and managing bond market risks, rather than stimulating growth. But with the economy under pressure from trade tensions and internal demand softness, priorities are shifting. 
<h2 dir="ltr">U.S.-China trade talk</h2>
The timing is significant as China&rsquo;s Vice Premier He Lifeng is scheduled to meet U.S. Treasury Secretary Scott Bessent later this week in Switzerland&mdash;the first confirmed trade talks between the countries since President Donald Trump announced sweeping tariffs, led by punishing levies on China.
Bessent, in an interview on Fox News, said the talks will centre on de-escalation rather than a big trade deal. And President Trump also recently said that he is willing to lower tariffs on China at some point, but also said this week that the U.S. is &ldquo;losing nothing&rdquo; by not trading with Beijing.
After the talks were announced, China&rsquo;s Ministry of Commerce said in a statement that the U.S. should &ldquo;show sincerity&rdquo; in the upcoming talks, correct wrong practices and resolve the concerns of both sides through &ldquo;equal consultation&rdquo;.
The two nations have locked horns ever since Trump ratcheted up tariffs on Chinese goods to 145 per cent, prompting Beijing to retaliate with additional levies of 125 per cent on imports from the U.S.
&nbsp;
<h2 dir="ltr">Other key announcements</h2>
In a broader push to stabilise growth, China has also announced measures to support several key sectors, including technology and real estate, along with establishing a 500-billion-yuan (almost $692 million) relending tool for services consumption and elderly care. It has been announced that the quota for technology relending loans will increase to 800 billion yuan (approximately $1.1 billion) to support equipment upgrading, a consumer goods trade-in programme.
The country&rsquo;s central bank plans to cut the mortgage rates under China&rsquo;s housing provident fund, a government-backed housing lender, by 25 basis points, and the rates on five-year loans for first-time homebuyers will be trimmed to 2.6 per cent from 2.85 per cent. PBOC will also gradually lower the amount of cash that auto financial companies and leasing firms must hold in reserves to zero from the current 5 per cent.
PBOC expanded the allowance for the relending tool for agriculture and small and medium-sized enterprises by 300 billion yuan (around $415 million), along with combining two stock market support tools with a total quota of 800 billion yuan (about $1.1 billion).
A debt risk-sharing tool will also be created, allowing the PBOC to provide low-cost relending funds to encourage purchases of bonds of technology firms.
China is preparing more measures to support small and medium enterprises and the private sector, which will be announced soon, Li Yunze, the head of the financial regulatory administration, said at the briefing.
The broad stimulus announcement showed the officials were acting with greater urgency to bolster the economy. Beijing had largely opted for piecemeal stimulus measures this year, while hinting that it had sufficient policy firepower to use &ldquo;when appropriate&rdquo;. 
(With inputs from agencies)

Business & Economy: PBOC lowers the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent, taking effect from May 08.

China’s central bank is taking steps to stimulate the economy by cutting key policy rates in a bid to boost growth amid growing economic uncertainty and trade woes. The People's Bank of China (PBOC) said that it would lower the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent from 1.50 per cent, according to an online statement, taking effect from May 08. The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction in the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools. The PBOC previously lowered the seven-day reverse repo rate by 20 basis points (bps) in September 2024. The central bank will also lower the reserve requirement ratio (RRR), which determines the amount of cash banks must hold in reserves, by 50 basis points, which will give additional liquidity of 1000 billion yuan ($138.6 billion) to the market. PBOC Governor Pan Gongsheng reiterated that officials will implement a “moderately loose” monetary policy, which will translate into ample liquidity and ensure funding with relatively low financing costs. The RRR cut can enhance the stability of bank liabilities, he said. This move is notable as China has focused more on stabilising its currency and managing bond market risks, rather than stimulating growth. But with the economy under pressure from trade tensions and internal demand softness, priorities are shifting. U.S.-China trade talk The timing is significant as China’s Vice Premier He Lifeng is scheduled to meet U.S. Treasury Secretary Scott Bessent later this week in Switzerland—the first confirmed trade talks between the countries since President Donald Trump announced sweeping tariffs, led by punishing levies on China. Bessent, in an interview on Fox News, said the talks will centre on de-escalation rather than a big trade deal. And President Trump also recently said that he is willing to lower tariffs on China at some point, but also said this week that the U.S. is “losing nothing” by not trading with Beijing. After the talks were announced, China’s Ministry of Commerce said in a statement that the U.S. should “show sincerity” in the upcoming talks, correct wrong practices and resolve the concerns of both sides through “equal consultation”. The two nations have locked horns ever since Trump ratcheted up tariffs on Chinese goods to 145 per cent, prompting Beijing to retaliate with additional levies of 125 per cent on imports from the U.S. Other key announcements In a broader push to stabilise growth, China has also announced measures to support several key sectors, including technology and real estate, along with establishing a 500-billion-yuan (almost $692 million) relending tool for services consumption and elderly care. It has been announced that the quota for technology relending loans will increase to 800 billion yuan (approximately $1.1 billion) to support equipment upgrading, a consumer goods trade-in programme. The country’s central bank plans to cut the mortgage rates under China’s housing provident fund, a government-backed housing lender, by 25 basis points, and the rates on five-year loans for first-time homebuyers will be trimmed to 2.6 per cent from 2.85 per cent. PBOC will also gradually lower the amount of cash that auto financial companies and leasing firms must hold in reserves to zero from the current 5 per cent. PBOC expanded the allowance for the relending tool for agriculture and small and medium-sized enterprises by 300 billion yuan (around $415 million), along with combining two stock market support tools with a total quota of 800 billion yuan (about $1.1 billion). A debt risk-sharing tool will also be created, allowing the PBOC to provide low-cost relending funds to encourage purchases of bonds of technology firms. China is preparing more measures to support small and medium enterprises and the private sector, which will be announced soon, Li Yunze, the head of the financial regulatory administration, said at the briefing. The broad stimulus announcement showed the officials were acting with greater urgency to bolster the economy. Beijing had largely opted for piecemeal stimulus measures this year, while hinting that it had sufficient policy firepower to use “when appropriate”. (With inputs from agencies)

China cuts key rates, boosts liquidity ahead of US trade talk

US President <a href="https://www.wionews.com/world/sent-in-error-trump-administration-accidentally-tells-ukrainian-refugees-to-leave-us-in-email-blunder-8928424" rel="dofollow noopener" target="_blank">Donald Trump</a> on Saturday downplayed the effect of China's retaliatory tariffs, saying that "China has been hit much harder than the USA."
Taking on Truth Social on Saturday, the US President said, "China has been hit much harder than the USA, not even close. They, and many other nations, have treated us unsustainably badly."&nbsp;
"We have been the dumb and helpless 'whipping post,' but not any longer. We are bringing back jobs and businesses like never before. Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast! THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN," Trump said.
Also read: <a href="https://www.wionews.com/world/netanyahu-to-meet-trump-in-washington-this-week-first-foreign-leader-to-discuss-tariffs-in-person-8929092">Netanyahu to meet Trump in Washington this week, first foreign leader to discuss tariffs in person</a>
Trump also seemed to backflip from his earlier claim that the US doesn't need to worry about the impact of 'tarrifs', saying, "HANG TOUGH, it won&rsquo;t be easy, but the end result will be historic. We will, MAKE AMERICA GREAT AGAIN!!!"
<h2>China imposes tariffs on the United States</h2>
Beijing on Friday (April 04), announced steep retaliatory tariffs on American goods in response to President Donald Trump&rsquo;s sweeping trade measures.
Starting April 10, China will impose 34% tariffs on all imports from the United States. In a strongly worded statement, China&rsquo;s State Council Tariff Commission described the move as a direct response to what it called Washington&rsquo;s aggressive and unfair trade actions.
Also read: <a href="https://www.wionews.com/world/trump-in-touch-with-india-and-two-other-nations-to-negotiate-trade-deals-that-could-revise-tariffs-report-8927592">Trump in touch with India and two other nations to negotiate trade deals that could revise tariffs: Report</a>
&ldquo;This practice of the US is not in line with international trade rules, seriously undermines China&rsquo;s legitimate rights and interests, and is a typical unilateral bullying practice,&rdquo; the Commission said.
Trump quickly reacted on Truth Social, accusing China of misjudging the situation.
&ldquo;CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!&rdquo; he wrote, slamming Beijing&rsquo;s decision to retaliate.
(With inputs from agencies)

World: Taking on Truth Social on Saturday, the US President said, "China has been hit much harder than the USA, not even close. They, and many other nations, have treated us unsustainably badly."

US President Donald Trump on Saturday downplayed the effect of China's retaliatory tariffs, saying that "China has been hit much harder than the USA." Taking on Truth Social on Saturday, the US President said, "China has been hit much harder than the USA, not even close. They, and many other nations, have treated us unsustainably badly." "We have been the dumb and helpless 'whipping post,' but not any longer. We are bringing back jobs and businesses like never before. Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast! THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN," Trump said. Also read: Netanyahu to meet Trump in Washington this week, first foreign leader to discuss tariffs in person Trump also seemed to backflip from his earlier claim that the US doesn't need to worry about the impact of 'tarrifs', saying, "HANG TOUGH, it won’t be easy, but the end result will be historic. We will, MAKE AMERICA GREAT AGAIN!!!" China imposes tariffs on the United States Beijing on Friday (April 04), announced steep retaliatory tariffs on American goods in response to President Donald Trump’s sweeping trade measures. Starting April 10, China will impose 34% tariffs on all imports from the United States. In a strongly worded statement, China’s State Council Tariff Commission described the move as a direct response to what it called Washington’s aggressive and unfair trade actions. Also read: Trump in touch with India and two other nations to negotiate trade deals that could revise tariffs: Report “This practice of the US is not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice,” the Commission said. Trump quickly reacted on Truth Social, accusing China of misjudging the situation. “CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!” he wrote, slamming Beijing’s decision to retaliate. (With inputs from agencies)

'China has been hit much harder': Trump downplays Beijing's retaliatory tariffs but admits trade war 'won’t be easy'

China indicated a change in policy focus towards consumption for 2025 - increasing state borrowing and spending. The country stepped up its stimulus efforts to recharge the economy next year in anticipation of impending US tariffs.

Top officials led by President Xi Jinping announced their intention to increase the fiscal deficit target for next year. This is based on a report by China Central Television after the two-day huddle of the central economic work conference in Beijing. 
 
The Politiburo pledged to ease monetary policy, including interest rates, "at an appropriate time." Expectations show that China may deliver the biggest rate cuts in a decade in 2025.

The announcements come as part of Beijing's efforts to address ongoing deflation and slowing economic growth. This marks a departure from the "prudent" monetary policy that has been in place for 14 years. 
 
The state media said that China will prioritise "lifting consumption vigorously" and other targets to promote overall domestic demand in 2025. Despite the meeting's generally upbeat tone, it fails to outline any concrete measures to increase consumption. 
 
While the specifics of fiscal spending and borrowing will be revealed in March 2025, the direction is clear. This comes when China's economy faces several challenges, including its longest streak of deflation this century. This has put pressure on corporate profits and investment and added doubts about whether the country can achieve its 5 per cent growth target. 
 
Exports are unlikely to continue being a key engine of development in the wake of Donald Trump's re-election. This raises the prospect of a fresh trade war with the United States. There are also increasing domestic difficulties. There has been no indication that the home market slump would soon end. 
 
In response, politburo has committed to lifting domestic consumption as a top priority for 2025.

(With inputs from the agencies)

China indicated a change in policy focus towards consumption for 2025 - increasing state borrowing and spending. The country stepped up its stimulus efforts to recharge the economy next year in anticipation of impending US tariffs.

China indicated a change in policy focus towards consumption for 2025 - increasing state borrowing and spending. The country stepped up its stimulus efforts to recharge the economy next year in anticipation of impending US tariffs. Top officials led by President Xi Jinping announced their intention to increase the fiscal deficit target for next year. This is based on a report by China Central Television after the two-day huddle of the central economic work conference in Beijing. The Politiburo pledged to ease monetary policy, including interest rates, "at an appropriate time." Expectations show that China may deliver the biggest rate cuts in a decade in 2025. The announcements come as part of Beijing's efforts to address ongoing deflation and slowing economic growth. This marks a departure from the "prudent" monetary policy that has been in place for 14 years. The state media said that China will prioritise "lifting consumption vigorously" and other targets to promote overall domestic demand in 2025. Despite the meeting's generally upbeat tone, it fails to outline any concrete measures to increase consumption. While the specifics of fiscal spending and borrowing will be revealed in March 2025, the direction is clear. This comes when China's economy faces several challenges, including its longest streak of deflation this century. This has put pressure on corporate profits and investment and added doubts about whether the country can achieve its 5 per cent growth target. Exports are unlikely to continue being a key engine of development in the wake of Donald Trump's re-election. This raises the prospect of a fresh trade war with the United States. There are also increasing domestic difficulties. There has been no indication that the home market slump would soon end. In response, politburo has committed to lifting domestic consumption as a top priority for 2025. (With inputs from the agencies)

China steps up stimulus to recharge growth ahead of US tariffs

JPMorgan's annual outlook warns that emerging markets face a turbulent 2025, with significant uncertainty stemming from policy shifts in the United States and ongoing challenges in China.

The bank predicts that growth across emerging markets will slow to 3.4 per cent in 2025, down from 4.1 per cent this year.

Excluding China, growth is expected to moderate further to 3.0 per cent, from 3.4 per cent in 2024.

The outlook highlights how us policy changes could trigger a negative supply shock, creating ripple effects across emerging economies.

With a stronger dollar and higher rates on the horizon, emerging-market bond funds are projected to face outflows between $5 billion and $15 billion in 2025.

JPMorgan's report outlines a challenging year for emerging-market fixed income.

The return of a Republican-led us government under Donald Trump is anticipated to bring tariff policies, geopolitical shifts, and domestic changes that could strengthen the dollar and elevate interest rates.

These factors will weigh heavily on sentiment towards emerging markets, particularly their sovereign debt.

Despite these risks, the bank forecasts a 4.3 per cent return for hard-currency sovereign debt by the end of 2025, a decline from the 6.9 per cent return expected for 2024.

The bank's debt issuance forecast shows a slight decline in hard-currency sovereign gross issuance to just below the 2024 level. However, rising debt amortizations mean net financing will drop significantly.

On the market-specific front, JPMorgan has removed its overweight recommendation on the Dominican Republic's sovereign debt, Although it expects the country to attain investment-grade status within four years.

Additionally, the bank has turned underweight on Indonesia's local rates, signalling caution as emerging markets navigate a challenging year ahead.

(With inputs from agencies)

JPMorgan's annual outlook warns that emerging markets face a turbulent 2025, with significant uncertainty stemming from policy shifts in the United States and ongoing challenges in China.

JPMorgan's annual outlook warns that emerging markets face a turbulent 2025, with significant uncertainty stemming from policy shifts in the United States and ongoing challenges in China. The bank predicts that growth across emerging markets will slow to 3.4 per cent in 2025, down from 4.1 per cent this year. Excluding China, growth is expected to moderate further to 3.0 per cent, from 3.4 per cent in 2024. The outlook highlights how us policy changes could trigger a negative supply shock, creating ripple effects across emerging economies. With a stronger dollar and higher rates on the horizon, emerging-market bond funds are projected to face outflows between $5 billion and $15 billion in 2025. JPMorgan's report outlines a challenging year for emerging-market fixed income. The return of a Republican-led us government under Donald Trump is anticipated to bring tariff policies, geopolitical shifts, and domestic changes that could strengthen the dollar and elevate interest rates. These factors will weigh heavily on sentiment towards emerging markets, particularly their sovereign debt. Despite these risks, the bank forecasts a 4.3 per cent return for hard-currency sovereign debt by the end of 2025, a decline from the 6.9 per cent return expected for 2024. The bank's debt issuance forecast shows a slight decline in hard-currency sovereign gross issuance to just below the 2024 level. However, rising debt amortizations mean net financing will drop significantly. On the market-specific front, JPMorgan has removed its overweight recommendation on the Dominican Republic's sovereign debt, Although it expects the country to attain investment-grade status within four years. Additionally, the bank has turned underweight on Indonesia's local rates, signalling caution as emerging markets navigate a challenging year ahead. (With inputs from agencies)

JPMorgan warns of tough year ahead for emerging markets in 2025

China's dream to have a "strong currency" one which is stable and increasing its influence in global trade is facing new challenges with former US President Donald Trump potentially returning to the White House, restarting trade tensions and adding pressure on the yuan. According to a detailed report published in Bloomberg, analysts predict greater risks for the yuan under Trump's policies.

Years of downward pressure awaits the yuan<o:p></o:p>

Further, as Trump prepares for a possible second term, analysts say years of downward pressure are ahead for the yuan. Investors are already betting against it for fear that another trade war between China and the US is soon to come, the Bloomberg report explained further.

In fact, some believe that by 2025, the yuan may break its 17-year low versus the dollar, with bearish forecasts suggesting a decline of up to 10 per cent. The yuan's flaws today far outweigh those seen in the previous trading war. Yields for Chinese government bonds are now much lower than those of the United States, foreign investments have shrunk, and China's economic growth is still up in the air, making it an even tougher currency to handle, the Bloomberg report explained further.

"We don't expect a renewed contest of wills between the PBOC and the US Treasury anytime soon," says emerging markets economist Adam Wolfe. But if it escalated to a full-blown trade war, the PBOC would allow the currency to erode further for exports to improve and to create a stronger position in bargaining with America. Already this is causing traders to place bets against the yuan. The onshore yuan touched its lowest in three months on Nov. 14 as major financial institutions forecasted the currency was likely to drop to its low point against the dollar at 7.351.

Analysts predict the yuan will stabilize at 7.5 against the dollar if Trump goes with his plan to impose 60 per cent tariffs on Chinese goods, as he has previously suggested. Others, for example, UBS and Societe Generale, predict further depreciation by year's end. Possible exchange rates hit as high as 7.60-7.70 in 2025. The worst-case sees yuan value at 8 per dollar-a level that was last, uh, written for in 2006.

Weaker yuan is expected to boost exports<o:p></o:p>

Another key question is how the PBOC will react. So, a weaker yuan will boost exports, but letting the currency fall too far might hamper economic stability, trigger capital flight, and invite international criticism. Large devaluation may reignite accusations that it is using monetary policy for competitive devaluation after all when it let the daily fixing rate of the yuan drop 1.9 per cent in 2015, leading to a huge outflow of capital and depletion of foreign reserves.

While outright devaluation is still unlikely and comes with a number of risks, it has been fine-tuning its foreign exchange policy. These have included stronger daily fixing rates, adjustments in bank reserve requirements, and the encouragement of state-owned banks to better manage offshore market liquidity. These policies might perhaps mitigate some of the damage from US tariffs.

Interestingly, Trump's own desire for a weak dollar may ironically aid China. Weakening of the greenback would enable it to purchase more goods made in the United States, thereby potentially diminishing somewhat the effect of the levied tariffs on Chinese exportation. Still, analysts on Wall Street aren't convinced that Trump's policies will undo sufficiently enough as to really weaken the dollar.

Xi Jinping's hope of turning the yuan into a global currency will be tested. Faster depreciation of the yuan may risk this dream, forcing attention away from much-needed long-term financial soundness toward more short-term economic relief. China is adrift during these trying times, and its currency, along with its ambitions on the global map, remain shrouded in uncertainty, added the Bloomberg report.

Market participants and global investors will closely follow the US-China relationship going ahead. This will help them in taking informed investment decisions, because a possibility of a long-drawn trade war will result in global investors turning defensive.

China's dream to have a "strong currency" one which is stable and increasing its influence in global trade is facing new challenges with former US President Donald Trump potentially returning to the White House, restarting trade tensions and adding pressure on the yuan.

China's dream to have a "strong currency" one which is stable and increasing its influence in global trade is facing new challenges with former US President Donald Trump potentially returning to the White House, restarting trade tensions and adding pressure on the yuan. According to a detailed report published in Bloomberg, analysts predict greater risks for the yuan under Trump's policies. Years of downward pressure awaits the yuan Further, as Trump prepares for a possible second term, analysts say years of downward pressure are ahead for the yuan. Investors are already betting against it for fear that another trade war between China and the US is soon to come, the Bloomberg report explained further. In fact, some believe that by 2025, the yuan may break its 17-year low versus the dollar, with bearish forecasts suggesting a decline of up to 10 per cent. The yuan's flaws today far outweigh those seen in the previous trading war. Yields for Chinese government bonds are now much lower than those of the United States, foreign investments have shrunk, and China's economic growth is still up in the air, making it an even tougher currency to handle, the Bloomberg report explained further. "We don't expect a renewed contest of wills between the PBOC and the US Treasury anytime soon," says emerging markets economist Adam Wolfe. But if it escalated to a full-blown trade war, the PBOC would allow the currency to erode further for exports to improve and to create a stronger position in bargaining with America. Already this is causing traders to place bets against the yuan. The onshore yuan touched its lowest in three months on Nov. 14 as major financial institutions forecasted the currency was likely to drop to its low point against the dollar at 7.351. Analysts predict the yuan will stabilize at 7.5 against the dollar if Trump goes with his plan to impose 60 per cent tariffs on Chinese goods, as he has previously suggested. Others, for example, UBS and Societe Generale, predict further depreciation by year's end. Possible exchange rates hit as high as 7.60-7.70 in 2025. The worst-case sees yuan value at 8 per dollar-a level that was last, uh, written for in 2006. Weaker yuan is expected to boost exports Another key question is how the PBOC will react. So, a weaker yuan will boost exports, but letting the currency fall too far might hamper economic stability, trigger capital flight, and invite international criticism. Large devaluation may reignite accusations that it is using monetary policy for competitive devaluation after all when it let the daily fixing rate of the yuan drop 1.9 per cent in 2015, leading to a huge outflow of capital and depletion of foreign reserves. While outright devaluation is still unlikely and comes with a number of risks, it has been fine-tuning its foreign exchange policy. These have included stronger daily fixing rates, adjustments in bank reserve requirements, and the encouragement of state-owned banks to better manage offshore market liquidity. These policies might perhaps mitigate some of the damage from US tariffs. Interestingly, Trump's own desire for a weak dollar may ironically aid China. Weakening of the greenback would enable it to purchase more goods made in the United States, thereby potentially diminishing somewhat the effect of the levied tariffs on Chinese exportation. Still, analysts on Wall Street aren't convinced that Trump's policies will undo sufficiently enough as to really weaken the dollar. Xi Jinping's hope of turning the yuan into a global currency will be tested. Faster depreciation of the yuan may risk this dream, forcing attention away from much-needed long-term financial soundness toward more short-term economic relief. China is adrift during these trying times, and its currency, along with its ambitions on the global map, remain shrouded in uncertainty, added the Bloomberg report. Market participants and global investors will closely follow the US-China relationship going ahead. This will help them in taking informed investment decisions, because a possibility of a long-drawn trade war will result in global investors turning defensive.

Trump's return threatens Xi's ambition of 'Powerful Currency’

<o:p>The West should not think or assume that China is lagging behind the US and Europe on technological developments, Microsoft’s president and vice-chairman warned according to a detailed report by CNBC.</o:p>

US and China tensions in the past few years have centered on the battle between the two nations for technological supremacy, resulting in several export control measures&nbsp;on critical technologies from both the nations, the CNBC report explained further.<o:p></o:p>

Late last year, China’s Huawei took the market by shock with the release of a smartphone whose studied reviews indicated downloads speeds associated with 5G. This sparked&nbsp;speculation of an apparently clear chip breakthrough that defied US technological sanctions and hence resulted in further escalating tensions.&nbsp;

Speaking at the Web Summit technological conference in Lisbon, Portugal, on November 13, Microsoft’s Brad Smith told CNBC that “in many ways,” China is close to or is even catching up on technology.<o:p></o:p>

“I think one of the dangers, frankly, is that people who don’t go to China too often assume that they’re behind,” he told CNBC in an exclusive conversation. “But when you go there, you’re impressed by how much they’re doing.”<o:p></o:p>

Accordingly, he believes that Chinese and American companies will be competing on technology into the distant future and urged US and European companies to collaborate and to grow economies and bring new advancements like artificial intelligence to the rest of the world, detailed the CNBC report further.<o:p></o:p>

Microsoft has operated in China since 1992<o:p></o:p>

Microsoft has operated in China since 1992, according to the company’s website, including through its largest research and development center outside the US.

Further, Microsoft CEO Satya Nadella elaborated last year that the firm wasn’t focused on China as a domestic market, but that it provides services to Chinese companies and has a more visible presence locally than do many other US technology giants.

<o:p>It is further anticipated that going ahead, issues related to technology transfer, movement of data, designs and innovations between the US and China will get more demanding and challenging for both the nations. Even as the US now moves towards a transition in administration from Biden to Trump.</o:p>

According to experts a clear business relationship between a US company and China is only possible, when the US offers a service that the Chinese government aspires to have and the US government is willing to allow such a transfer.

Therefore, as China further consolidates and closes the technological gap on the US, some more technology will move to China and this might continue to even propel the Chinese economy going ahead.&nbsp;

It is hence crucial to note that the gap between the US and China in terms of cutting-edge technology is rapidly reducing. This is bound to bring more challenges and difficulties for both the nations to adjust accordingly.<o:p></o:p>

<o:p>&nbsp;</o:p>

The West should not think or assume that China is lagging behind the US and Europe on technological developments, Microsoft’s president and vice-chairman warned according to a detailed report by CNBC.

The West should not think or assume that China is lagging behind the US and Europe on technological developments, Microsoft’s president and vice-chairman warned according to a detailed report by CNBC. US and China tensions in the past few years have centered on the battle between the two nations for technological supremacy, resulting in several export control measures on critical technologies from both the nations, the CNBC report explained further. Late last year, China’s Huawei took the market by shock with the release of a smartphone whose studied reviews indicated downloads speeds associated with 5G. This sparked speculation of an apparently clear chip breakthrough that defied US technological sanctions and hence resulted in further escalating tensions. Speaking at the Web Summit technological conference in Lisbon, Portugal, on November 13, Microsoft’s Brad Smith told CNBC that “in many ways,” China is close to or is even catching up on technology. “I think one of the dangers, frankly, is that people who don’t go to China too often assume that they’re behind,” he told CNBC in an exclusive conversation. “But when you go there, you’re impressed by how much they’re doing.” Accordingly, he believes that Chinese and American companies will be competing on technology into the distant future and urged US and European companies to collaborate and to grow economies and bring new advancements like artificial intelligence to the rest of the world, detailed the CNBC report further. Microsoft has operated in China since 1992 Microsoft has operated in China since 1992, according to the company’s website, including through its largest research and development center outside the US. Further, Microsoft CEO Satya Nadella elaborated last year that the firm wasn’t focused on China as a domestic market, but that it provides services to Chinese companies and has a more visible presence locally than do many other US technology giants. It is further anticipated that going ahead, issues related to technology transfer, movement of data, designs and innovations between the US and China will get more demanding and challenging for both the nations. Even as the US now moves towards a transition in administration from Biden to Trump. According to experts a clear business relationship between a US company and China is only possible, when the US offers a service that the Chinese government aspires to have and the US government is willing to allow such a transfer. Therefore, as China further consolidates and closes the technological gap on the US, some more technology will move to China and this might continue to even propel the Chinese economy going ahead. It is hence crucial to note that the gap between the US and China in terms of cutting-edge technology is rapidly reducing. This is bound to bring more challenges and difficulties for both the nations to adjust accordingly.

Microsoft President: China closing technology gap with the West

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns. The announcement from the Treasury Department, reported by Reuters, outlines a significant shift in the US approach to foreign investment in critical technologies.

Starting January 2, US citizens, permanent residents, and companies based in the US will be prohibited from engaging in transactions involving advanced technologies such as AI, quantum computing, and semiconductors. Furthermore, US investors will be required to notify the Treasury of investments in less advanced technologies that could still pose national security risks.

Paul Rosen, the assistant secretary of the Treasury for Investment Security, emphasized the importance of these measures, stating, "US investment must not be exploited to advance the development of key technologies that could threaten our national security."

He highlighted that US investments often include intangible benefits like managerial expertise and access to talent networks, which should not aid countries perceived as adversaries in enhancing their military, intelligence, or cyber capabilities.

These restrictions follow President Joe Biden's executive order from last year, which aimed to curb investments in semiconductors, microelectronics, quantum computing, and specific AI technologies. Biden expressed concerns that US investments might inadvertently support adversarial nations in developing sensitive technologies essential for military and intelligence operations.

In response, China's Ministry of Foreign Affairs condemned the executive order, labelling it an anti-globalization and de-sinicization effort. The ministry expressed strong dissatisfaction and firmly opposed the US stance, asserting that China has lodged formal complaints regarding the investment restrictions.

The US government's decision reflects growing apprehension about China's technological advancements and their potential military applications. By limiting investments in critical sectors, the US aims to safeguard its national interests and prevent adversaries from gaining an upper hand in emerging technologies that are vital to national security.

As the geopolitical landscape continues to evolve, these new investment restrictions mark a significant step in the ongoing tension between the US and China. The implications of these regulations will likely reverberate across the global tech industry, affecting not only US investors but also foreign companies engaged in similar sectors. The push for a more cautious approach to technology transfer highlights the increasing prioritization of national security in economic policy.

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns.

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns. The announcement from the Treasury Department, reported by Reuters, outlines a significant shift in the US approach to foreign investment in critical technologies. Starting January 2, US citizens, permanent residents, and companies based in the US will be prohibited from engaging in transactions involving advanced technologies such as AI, quantum computing, and semiconductors. Furthermore, US investors will be required to notify the Treasury of investments in less advanced technologies that could still pose national security risks. Paul Rosen, the assistant secretary of the Treasury for Investment Security, emphasized the importance of these measures, stating, "US investment must not be exploited to advance the development of key technologies that could threaten our national security." He highlighted that US investments often include intangible benefits like managerial expertise and access to talent networks, which should not aid countries perceived as adversaries in enhancing their military, intelligence, or cyber capabilities. These restrictions follow President Joe Biden's executive order from last year, which aimed to curb investments in semiconductors, microelectronics, quantum computing, and specific AI technologies. Biden expressed concerns that US investments might inadvertently support adversarial nations in developing sensitive technologies essential for military and intelligence operations. In response, China's Ministry of Foreign Affairs condemned the executive order, labelling it an anti-globalization and de-sinicization effort. The ministry expressed strong dissatisfaction and firmly opposed the US stance, asserting that China has lodged formal complaints regarding the investment restrictions. The US government's decision reflects growing apprehension about China's technological advancements and their potential military applications. By limiting investments in critical sectors, the US aims to safeguard its national interests and prevent adversaries from gaining an upper hand in emerging technologies that are vital to national security. As the geopolitical landscape continues to evolve, these new investment restrictions mark a significant step in the ongoing tension between the US and China. The implications of these regulations will likely reverberate across the global tech industry, affecting not only US investors but also foreign companies engaged in similar sectors. The push for a more cautious approach to technology transfer highlights the increasing prioritization of national security in economic policy.

US implements new investment restrictions on AI and semiconductors in China

An escalation of trade and tariffs tensions between the US and China would have “costly” economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund stated in a conversation with CNBC on October 23. This advice comes amid the ongoing trade tensions between the US and China.

“We are seeing geopolitically driven trade around the world, which is why when you look at overall trade to GDP that’s holding up fine, but who’s trading with whom is certainly changing,” she said. The US and China are trading with one another less, and some parts of their trade are being re-routed through other countries, she added.

Trade tensions between the US and China and the European Union and China have been mounting this year, with both the US and EU implementing higher tariffs on some Chinese goods over what they claim are unfair trade practices from Beijing.

China has also announced higher temporary tariffs on some imports from the EU as the tit-for-tat measures continue. If tariffs were escalated, modelling from the IMF suggests it would be “costly for everybody,” Gopinath told CNBC on the sidelines of the agency’s annual meeting in Washington. “Output is going to be much lower than what we are projecting for all countries in the world, there’s going to be inflation pressure, so that’s not the direction in which we should be going,” she explained.

Gopinath’s comments come after IMF Managing Director Kristalina Georgieva said last week that international trade would no longer be the “engine of growth” it once was, and that “retaliatory” trade measures could hurt those imposing them as much as their targets.

Tim Adams, CEO of the Institute of International Finance, also warned Wednesday that tariff proposals from US presidential candidate Donald Trump would interrupt the path of disinflation and could lead to higher interest rates.

The IMF’s Gopinath said it would benefit both the US and China to have “good working relations,” noting that this was also important for the rest of the world. It is “in everyone’s self-interest that these relationships are maintained,” she said.

The IMF warned in its recent World Economic Outlook report that increasing protectionist policies were a downside risk to growth. “A broad-based retreat from a rules-based global trading system is prompting many countries to take unilateral actions. Not only would an intensification of protectionist policies exacerbate global trade tensions and disrupt global supply chains, but it could also weigh down medium-term growth prospects,” the report said.

An escalation of trade and tariffs tensions between the US and China would have “costly” economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund stated in a conversation with CNBC on October 23.

An escalation of trade and tariffs tensions between the US and China would have “costly” economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund stated in a conversation with CNBC on October 23. This advice comes amid the ongoing trade tensions between the US and China. “We are seeing geopolitically driven trade around the world, which is why when you look at overall trade to GDP that’s holding up fine, but who’s trading with whom is certainly changing,” she said. The US and China are trading with one another less, and some parts of their trade are being re-routed through other countries, she added. Trade tensions between the US and China and the European Union and China have been mounting this year, with both the US and EU implementing higher tariffs on some Chinese goods over what they claim are unfair trade practices from Beijing. China has also announced higher temporary tariffs on some imports from the EU as the tit-for-tat measures continue. If tariffs were escalated, modelling from the IMF suggests it would be “costly for everybody,” Gopinath told CNBC on the sidelines of the agency’s annual meeting in Washington. “Output is going to be much lower than what we are projecting for all countries in the world, there’s going to be inflation pressure, so that’s not the direction in which we should be going,” she explained. Gopinath’s comments come after IMF Managing Director Kristalina Georgieva said last week that international trade would no longer be the “engine of growth” it once was, and that “retaliatory” trade measures could hurt those imposing them as much as their targets. Tim Adams, CEO of the Institute of International Finance, also warned Wednesday that tariff proposals from US presidential candidate Donald Trump would interrupt the path of disinflation and could lead to higher interest rates. The IMF’s Gopinath said it would benefit both the US and China to have “good working relations,” noting that this was also important for the rest of the world. It is “in everyone’s self-interest that these relationships are maintained,” she said. The IMF warned in its recent World Economic Outlook report that increasing protectionist policies were a downside risk to growth. “A broad-based retreat from a rules-based global trading system is prompting many countries to take unilateral actions. Not only would an intensification of protectionist policies exacerbate global trade tensions and disrupt global supply chains, but it could also weigh down medium-term growth prospects,” the report said.

US, China trade tariffs escalating would be ‘costly for everybody': IMF

As geopolitical tensions escalate in the South China Sea, experts are raising alarms about the potential risks to global trade. The region, a crucial maritime passage for economic giants including China, Japan, and India, has seen a surge in confrontations that could disrupt some of the busiest shipping routes in the world as detailed in a report by CNBC. <o:p></o:p>

Recent incidents involving the Philippine Coast Guard and Chinese vessels highlight the growing friction. On August 26, 2024, the BRP Cape Engano was observed on a supply mission to Sabina Shoal while Chinese Coast Guard ships loomed nearby. This incident is part of a broader pattern of confrontations between China and its neighbours, particularly the Philippines and Vietnam, raising concerns about the implications for international trade.<o:p></o:p>

The South China Sea is not just a regional flashpoint; it plays a vital role in global commerce. Mark Papic, chief global-macro strategist at BCA Research, emphasised the strategic importance of this area, stating that it is "the most crucial shipping route in the world regarding the value of trade that passes through it." Any conflict here poses significant threats to maritime activities globally.<o:p></o:p>

Trade volumes through this region are substantial. Although precise figures are hard to come by, estimates from the CSIS China Power Project suggest that around $3.4 trillion in trade transited through the South China Sea in 2016 alone, accounting for approximately 21 per cent of global trade. Furthermore, the United Nations Conference on Trade and Development noted that about 60 per cent of maritime trade occurs within Asia, with one-third facilitated by this critical waterway.<o:p></o:p>

The geopolitical landscape is complicated by China's extensive claims over nearly the entire South China Sea, based on its controversial "nine-dash line." This assertion contradicts a 2016 ruling from an international arbitration court in The Hague, which found no legal basis for China's claims. The situation has led to heightened tensions with neighbouring countries accusing China of encroaching on their exclusive economic zones.<o:p></o:p>

Recent confrontations have included accusations from the Philippines that Chinese missile boats have pursued its vessels and targeted patrolling aircraft with lasers near Half Moon Shoal. This follows a series of incidents involving collisions and aggressive tactics that have left Filipino sailors injured.<o:p></o:p>

Philippine President Ferdinand Marcos Jr. has called for urgent discussions on establishing a code of conduct for the South China Sea during regional summits, urging an end to what he describes as Beijing's intimidation tactics. Similarly, Vietnam’s foreign ministry has condemned China's actions against Vietnamese fishing boats.<o:p></o:p>

Richard Heydarian, a policy advisor and senior lecturer at the University of the Philippines, warns that these escalating tensions may soon provoke responses from other ASEAN nations. He stated, "It’s only a matter of time before more ASEAN nations voice their concerns."<o:p></o:p>

Despite these rising tensions, experts believe all parties have strong incentives to avoid escalating into full-scale conflict. Analysts suggest that China is employing "gray zone" tactics—coercive actions that fall short of open conflict but exceed standard diplomatic practices—to gradually assert its claims without provoking direct military confrontation.<o:p></o:p>

Abdulacob, a Southeast Asia fellow at Lowy Institute, cautioned that if China were to restrict navigation freedoms in these waters, it could lead to increased US involvement. However, he noted that currently all parties appear keen to avoid escalating tensions into military conflict.<o:p></o:p>

As this situation develops, it remains imperative for global stakeholders to monitor these tensions closely and seek diplomatic solutions to ensure the continued flow of trade through one of the world's most vital maritime corridors.<o:p></o:p>

As geopolitical tensions escalate in the South China Sea, experts are raising alarms about the potential risks to global trade. The region, a crucial maritime passage for economic giants including China, Japan, and India, has seen a surge in confrontations that could disrupt some of the busiest shipping routes in the world as detailed in a report by CNBC.

As geopolitical tensions escalate in the South China Sea, experts are raising alarms about the potential risks to global trade. The region, a crucial maritime passage for economic giants including China, Japan, and India, has seen a surge in confrontations that could disrupt some of the busiest shipping routes in the world as detailed in a report by CNBC. Recent incidents involving the Philippine Coast Guard and Chinese vessels highlight the growing friction. On August 26, 2024, the BRP Cape Engano was observed on a supply mission to Sabina Shoal while Chinese Coast Guard ships loomed nearby. This incident is part of a broader pattern of confrontations between China and its neighbours, particularly the Philippines and Vietnam, raising concerns about the implications for international trade. The South China Sea is not just a regional flashpoint; it plays a vital role in global commerce. Mark Papic, chief global-macro strategist at BCA Research, emphasised the strategic importance of this area, stating that it is "the most crucial shipping route in the world regarding the value of trade that passes through it." Any conflict here poses significant threats to maritime activities globally. Trade volumes through this region are substantial. Although precise figures are hard to come by, estimates from the CSIS China Power Project suggest that around $3.4 trillion in trade transited through the South China Sea in 2016 alone, accounting for approximately 21 per cent of global trade. Furthermore, the United Nations Conference on Trade and Development noted that about 60 per cent of maritime trade occurs within Asia, with one-third facilitated by this critical waterway. The geopolitical landscape is complicated by China's extensive claims over nearly the entire South China Sea, based on its controversial "nine-dash line." This assertion contradicts a 2016 ruling from an international arbitration court in The Hague, which found no legal basis for China's claims. The situation has led to heightened tensions with neighbouring countries accusing China of encroaching on their exclusive economic zones. Recent confrontations have included accusations from the Philippines that Chinese missile boats have pursued its vessels and targeted patrolling aircraft with lasers near Half Moon Shoal. This follows a series of incidents involving collisions and aggressive tactics that have left Filipino sailors injured. Philippine President Ferdinand Marcos Jr. has called for urgent discussions on establishing a code of conduct for the South China Sea during regional summits, urging an end to what he describes as Beijing's intimidation tactics. Similarly, Vietnam’s foreign ministry has condemned China's actions against Vietnamese fishing boats. Richard Heydarian, a policy advisor and senior lecturer at the University of the Philippines, warns that these escalating tensions may soon provoke responses from other ASEAN nations. He stated, "It’s only a matter of time before more ASEAN nations voice their concerns." Despite these rising tensions, experts believe all parties have strong incentives to avoid escalating into full-scale conflict. Analysts suggest that China is employing "gray zone" tactics—coercive actions that fall short of open conflict but exceed standard diplomatic practices—to gradually assert its claims without provoking direct military confrontation. Abdulacob, a Southeast Asia fellow at Lowy Institute, cautioned that if China were to restrict navigation freedoms in these waters, it could lead to increased US involvement. However, he noted that currently all parties appear keen to avoid escalating tensions into military conflict. As this situation develops, it remains imperative for global stakeholders to monitor these tensions closely and seek diplomatic solutions to ensure the continued flow of trade through one of the world's most vital maritime corridors.

Global trade faces risk as tensions rise in South China Sea

China continues to dominate critical industries despite continued efforts by the US.

From a breakthrough in chipmaking technology to its stronghold on the rare earths market, the west is struggling to catch up with China's critical might.

China has announced a significant advancement in its semiconductor technology with the development of a new laser-based immersion lithography machine.

This new equipment achieves a resolution of 65 nanometres, a notable improvement from the previous 90 nanometres.

The resolution of lithography machines is crucial for chipmaking as it determines how finely integrated circuits can be printed onto silicon wafers.

Current leading technology from ASML has a resolution of around 8 nanometres.

Despite these advancements, Chinese companies are still working to close the gap with global leaders like ASML, especially given the US Sanctions that have restricted access to advanced semiconductor equipment.

While China's advancements in chipmaking are impressive, another critical element in high-technology manufacturing is the rare earth minerals.

These elements are essential for producing a wide range of electronic components, from smartphones to electric vehicles.

China currently dominates the global supply of rare earths, controlling approximately 70 per cent of output and more than 90 per cent of refining.

The US And its allies have recognized the strategic importance of rare earths and are working to reduce their dependence on China.

However, recent price declines and increased supply have raised concerns about the viability.

Efforts, such as the Lynas rare earths processing plant in Texas, face challenges including a slump in prices and higher-than-expected costs.

The mountain pass mine in California and other ventures are struggling with economic hurdles.

This illustrates the difficulties in developing a competitive alternative to China’s entrenched market presence in key critical industries.

China continues to dominate critical industries despite continued efforts by the US. From a breakthrough in chipmaking technology to its stronghold on the rare earths market, the west is struggling to catch up with China's critical might.

China continues to dominate critical industries despite continued efforts by the US. From a breakthrough in chipmaking technology to its stronghold on the rare earths market, the west is struggling to catch up with China's critical might. China has announced a significant advancement in its semiconductor technology with the development of a new laser-based immersion lithography machine. This new equipment achieves a resolution of 65 nanometres, a notable improvement from the previous 90 nanometres. The resolution of lithography machines is crucial for chipmaking as it determines how finely integrated circuits can be printed onto silicon wafers. Current leading technology from ASML has a resolution of around 8 nanometres. Despite these advancements, Chinese companies are still working to close the gap with global leaders like ASML, especially given the US Sanctions that have restricted access to advanced semiconductor equipment. While China's advancements in chipmaking are impressive, another critical element in high-technology manufacturing is the rare earth minerals. These elements are essential for producing a wide range of electronic components, from smartphones to electric vehicles. China currently dominates the global supply of rare earths, controlling approximately 70 per cent of output and more than 90 per cent of refining. The US And its allies have recognized the strategic importance of rare earths and are working to reduce their dependence on China. However, recent price declines and increased supply have raised concerns about the viability. Efforts, such as the Lynas rare earths processing plant in Texas, face challenges including a slump in prices and higher-than-expected costs. The mountain pass mine in California and other ventures are struggling with economic hurdles. This illustrates the difficulties in developing a competitive alternative to China’s entrenched market presence in key critical industries.

US battles ‘China conundrum’ in critical industries

An influential Democratic US congressman said Friday he will vote against a bill restricting business dealings with China's WuXi Biologics, BGI and other biotech companies due to national security concerns.

Rep. Jim McGovern of Massachusetts, the ranking member of the House Rules Committee, said he is trying to convince colleagues to vote against the bill.

McGovern said that it was not clear how the companies had been included in the legislation and that he could not get a straight answer as to why WuXi Biologics was added. The company is constructing a facility in his district.

The US House of Representatives is expected to vote on the Biosecure Act on Monday. Supporters said the bill-which would slap federal contracting bans on the companies-is necessary to help protect the personal health and genetic data of Americans and US pharmaceutical supply chains.

McGovern, the lead House Democrat on the Congressional-Executive Commission on China and a critic of China's human rights abuses, said, "Companies providing sensitive information to the Chinese government is a real and important issue."

"But the bottom line is, this is a lousy bill."

The bill is to be voted on under a process that limits debate, prohibits amendments, and requires a two-thirds majority vote for approval.

A spokesperson for the House Select Committee on China said that "biotech companies beholden to our foremost adversary, the Chinese Communist Party, pose a tremendous national security risk" and added that WuXi Biologics, BGI, and WuXi AppTec have demonstrated a history of working with the party.

The bill also designates WuXi AppTec, MGI, and Complete Genomics as companies of concern.

The companies deny posing a risk to US national security, and each says it should not be included in the bill.

The legislation still had to be passed by both the House and Senate before President Joe Biden could sign it into law.

An influential Democratic US congressman said Friday he will vote against a bill restricting business dealings with China's WuXi Biologics, BGI and other biotech companies due to national security concerns.

An influential Democratic US congressman said Friday he will vote against a bill restricting business dealings with China's WuXi Biologics, BGI and other biotech companies due to national security concerns. Rep. Jim McGovern of Massachusetts, the ranking member of the House Rules Committee, said he is trying to convince colleagues to vote against the bill. McGovern said that it was not clear how the companies had been included in the legislation and that he could not get a straight answer as to why WuXi Biologics was added. The company is constructing a facility in his district. The US House of Representatives is expected to vote on the Biosecure Act on Monday. Supporters said the bill-which would slap federal contracting bans on the companies-is necessary to help protect the personal health and genetic data of Americans and US pharmaceutical supply chains. McGovern, the lead House Democrat on the Congressional-Executive Commission on China and a critic of China's human rights abuses, said, "Companies providing sensitive information to the Chinese government is a real and important issue." "But the bottom line is, this is a lousy bill." The bill is to be voted on under a process that limits debate, prohibits amendments, and requires a two-thirds majority vote for approval. A spokesperson for the House Select Committee on China said that "biotech companies beholden to our foremost adversary, the Chinese Communist Party, pose a tremendous national security risk" and added that WuXi Biologics, BGI, and WuXi AppTec have demonstrated a history of working with the party. The bill also designates WuXi AppTec, MGI, and Complete Genomics as companies of concern. The companies deny posing a risk to US national security, and each says it should not be included in the bill. The legislation still had to be passed by both the House and Senate before President Joe Biden could sign it into law.

Democrat set to oppose bill targeting China's WuXi Biologics and BGI

The Biden administration schemes to slap export controls on critical technologies ranging from quantum computing to semiconductor goods in an effort to harmonise key allies in a US-led effort to slow innovation in China and other adversarial countries.

The proposed regulations would restrict exports of quantum computers and components, key chip-making equipment, a cutting-edge semiconductor technology known as gate all-around and associated components and software made from metals and metal alloys. They would apply to all foreign exports, though they provide for licensing exceptions for countries that adopt similar controls. That would include Japan and the Netherlands for instance, among other close allies, and the US expects others to follow, the Commerce Department said in a statement.

Given American leadership in a range of academic fields and research partnerships, the prospect of easier licence approvals is also an added carrot for countries to join the US camp. For years, Washington has tightened the screws on China and other adversaries' access to advanced technologies seen as crucial for artificial intelligence, citing fears that high-end chips and components could give Beijing a military edge.

ASML Holding NV, which makes the chip gear vital to produce the most advanced semiconductors, said Friday that it can now go directly to the Dutch government for approval to ship certain types of machines — rather than the US. And Taiwan's economic minister said the island would take its cues from Washington.

“We respect global norms,” Minister of Economic Affairs Kuo Jyh-huei told reporters. “Taiwan cannot be independent from the norms of friendly countries in the world. I think we should follow suit.”

The Biden administration schemes to slap export controls on critical technologies ranging from quantum computing to semiconductor goods in an effort to harmonise key allies in a US-led effort to slow innovation in China and other adversarial countries.

The Biden administration schemes to slap export controls on critical technologies ranging from quantum computing to semiconductor goods in an effort to harmonise key allies in a US-led effort to slow innovation in China and other adversarial countries. The proposed regulations would restrict exports of quantum computers and components, key chip-making equipment, a cutting-edge semiconductor technology known as gate all-around and associated components and software made from metals and metal alloys. They would apply to all foreign exports, though they provide for licensing exceptions for countries that adopt similar controls. That would include Japan and the Netherlands for instance, among other close allies, and the US expects others to follow, the Commerce Department said in a statement. Given American leadership in a range of academic fields and research partnerships, the prospect of easier licence approvals is also an added carrot for countries to join the US camp. For years, Washington has tightened the screws on China and other adversaries' access to advanced technologies seen as crucial for artificial intelligence, citing fears that high-end chips and components could give Beijing a military edge. ASML Holding NV, which makes the chip gear vital to produce the most advanced semiconductors, said Friday that it can now go directly to the Dutch government for approval to ship certain types of machines — rather than the US. And Taiwan's economic minister said the island would take its cues from Washington. “We respect global norms,” Minister of Economic Affairs Kuo Jyh-huei told reporters. “Taiwan cannot be independent from the norms of friendly countries in the world. I think we should follow suit.”

US set to impose export restrictions on quantum and chip technologies to China

JPMorgan Chase &amp; Co. discarded its buy recommendation for Chinese stocks, as the increase in volatility due to US elections was added onto the growth headwinds and tepid policy support.

Strategists led by Pedro Martins cut China to neutral from overweight in a note Wednesday. The risk of a renewed trade war between Washington and Beijing could hang over the shares in the run-up to November's US presidential vote, while moves by President Xi Jinping's government to help drag the country out of its economic slump continue to be "underwhelming."

“The impact of a potential ‘Tariff War 2.0’ (with tariffs increasing from 20 per cent to 60 per cent) could be more significant than the first tariff war,” the strategists wrote. “We expect China’s long-term growth to trend down structurally due to supply-chain relocation, the expansion of US-China conflicts, and continued domestic issues.”

The strategists added that challenges in managing the high weight of China in the MSCI emerging-market index and growing EM ex-China mandates were institutional factors likely to weigh on stock prices.

Strategists, including JPMorgan chief Asia and China equity strategist Wendy Liu, wrote in a separate note that the bank cut its end-2024 base target for the MSCI China Index to 60 from 66 and for the CSI300 Index to 3,500 from 3,900. They are still above the 55.7 and 3,252 levels at which the gauges last closed.

This comes after the vast majority of global banks now expect China's economy to grow less than 5 per cent this year. The latest to slash its forecast is Bank of America Corp. Meanwhile, JPMorgan's Haibin Zhu has also trimmed China's 2024 GDP growth forecast to 4.6 per cent.

“We think the market may trade on the weak side during Sept-Oct after Q2 results,” Liu wrote. “During this time, the US presidential election, the Fed’s rate decisions, and the US growth outlook will be front and centre.”

JPMorgan also increased the cash level in its China equity model portfolio to 7.7 per cent from 1 per cent, a report said.

JPMorgan Chase & Co. discarded its buy recommendation for Chinese stocks, as the increase in volatility due to US elections was added onto the growth headwinds and tepid policy support.

JPMorgan Chase & Co. discarded its buy recommendation for Chinese stocks, as the increase in volatility due to US elections was added onto the growth headwinds and tepid policy support. Strategists led by Pedro Martins cut China to neutral from overweight in a note Wednesday. The risk of a renewed trade war between Washington and Beijing could hang over the shares in the run-up to November's US presidential vote, while moves by President Xi Jinping's government to help drag the country out of its economic slump continue to be "underwhelming." “The impact of a potential ‘Tariff War 2.0’ (with tariffs increasing from 20 per cent to 60 per cent) could be more significant than the first tariff war,” the strategists wrote. “We expect China’s long-term growth to trend down structurally due to supply-chain relocation, the expansion of US-China conflicts, and continued domestic issues.” The strategists added that challenges in managing the high weight of China in the MSCI emerging-market index and growing EM ex-China mandates were institutional factors likely to weigh on stock prices. Strategists, including JPMorgan chief Asia and China equity strategist Wendy Liu, wrote in a separate note that the bank cut its end-2024 base target for the MSCI China Index to 60 from 66 and for the CSI300 Index to 3,500 from 3,900. They are still above the 55.7 and 3,252 levels at which the gauges last closed. This comes after the vast majority of global banks now expect China's economy to grow less than 5 per cent this year. The latest to slash its forecast is Bank of America Corp. Meanwhile, JPMorgan's Haibin Zhu has also trimmed China's 2024 GDP growth forecast to 4.6 per cent. “We think the market may trade on the weak side during Sept-Oct after Q2 results,” Liu wrote. “During this time, the US presidential election, the Fed’s rate decisions, and the US growth outlook will be front and centre.” JPMorgan also increased the cash level in its China equity model portfolio to 7.7 per cent from 1 per cent, a report said.

JPMorgan downgrades Chinese stocks amid US election risks and tepid policy support

Jake Sullivan, the national security advisor to United States&nbsp;President Joe Biden, will visit China next week, the White House said on Friday (August 23). This visit could be a step to manage the differences&nbsp;and avoid escalating tensions between the two nations.

Sullivan's trip to Beijing, scheduled from August 27 to 29, will be the first by a US national security advisor to China since 2016.

Other high-ranking officials from the Biden administration, such as Secretary of State Antony Blinken, have made visits to Beijing&nbsp;in the last two years. Though Sullivan has engaged in talks with Chinese officials on several occasions, this visit will be his first to China.

According to media reports, this high-profile visit could pave the way for another in-person meeting between Biden and&nbsp; China's&nbsp;President Xi Jinping later this year.&nbsp;

The two leaders met last&nbsp;November in northern California, where they held hours-long discussions. Xi also had lunch and took a walk in the garden with Biden. The meeting was seen as&nbsp;an attempt to stabilise the often tense relationship between the two countries.&nbsp;

This will be Sullivan’s first visit to China in his role as national security advisor. The planned discussions are part of a broader series of diplomatic efforts aimed at bringing stability to US-China relations.

Also read:&nbsp;<a href="https://www.wionews.com/world/pm-modi-presses-zelensky-to-pursue-peace-talks-with-russia-promises-indias-support-for-peace-efforts-752756">PM Modi pushes Zelenskyy for peace talks with Russia during first Kyiv visit</a>

The talks, expected to cover a wide range of strategic issues, come on the heels of Beijing’s decision to suspend discussions with Washington&nbsp;on nuclear safety and security. In July, China announced it had halted early-stage arms-control talks with Washington.

A senior US official on Friday told reporters that the US president's stance on Beijing&nbsp;remains firm, despite the upcoming visit by his security advisor and emphasised that the Biden administration still views the relationship with China as highly competitive.

“We are committed to making the investments, strengthening our alliances, and taking the common step on tech and national security that we need to take,” the official said.

The official added, “We are committed to managing this competition responsibly, however, and preventing it from veering into conflict.”

The US has been continuously cracking down on American&nbsp;technology transfers to China and has sanctioned many companies and individuals under the same effort.

(With inputs from agencies)

Jake Sullivan, the national security advisor to United States President Joe Biden, will visit China next week, the White House said on Friday (August 23). This visit could be a step to manage the differences and avoid escalating tensions between the two nations.

Jake Sullivan, the national security advisor to United States President Joe Biden, will visit China next week, the White House said on Friday (August 23). This visit could be a step to manage the differences and avoid escalating tensions between the two nations. Sullivan's trip to Beijing, scheduled from August 27 to 29, will be the first by a US national security advisor to China since 2016. Other high-ranking officials from the Biden administration, such as Secretary of State Antony Blinken, have made visits to Beijing in the last two years. Though Sullivan has engaged in talks with Chinese officials on several occasions, this visit will be his first to China. According to media reports, this high-profile visit could pave the way for another in-person meeting between Biden and China's President Xi Jinping later this year. The two leaders met last November in northern California, where they held hours-long discussions. Xi also had lunch and took a walk in the garden with Biden. The meeting was seen as an attempt to stabilise the often tense relationship between the two countries. This will be Sullivan’s first visit to China in his role as national security advisor. The planned discussions are part of a broader series of diplomatic efforts aimed at bringing stability to US-China relations. Also read: PM Modi pushes Zelenskyy for peace talks with Russia during first Kyiv visit The talks, expected to cover a wide range of strategic issues, come on the heels of Beijing’s decision to suspend discussions with Washington on nuclear safety and security. In July, China announced it had halted early-stage arms-control talks with Washington. A senior US official on Friday told reporters that the US president's stance on Beijing remains firm, despite the upcoming visit by his security advisor and emphasised that the Biden administration still views the relationship with China as highly competitive. “We are committed to making the investments, strengthening our alliances, and taking the common step on tech and national security that we need to take,” the official said. The official added, “We are committed to managing this competition responsibly, however, and preventing it from veering into conflict.” The US has been continuously cracking down on American technology transfers to China and has sanctioned many companies and individuals under the same effort. (With inputs from agencies)

US national security advisor Jake Sullivan to visit China: Will it pave the way for a Biden-Xi meeting?

The Chinese firm TikTok argued in a federal appeals court on Thursday that the US Department of Justice overstated the social media app's ties to China, urging it to throw out a law necessitating China-based ByteDance to sell TikTok's US assets or face a ban.

TikTok, which has sued to overturn the law, said the Justice Department has gotten the facts wrong in the case. Department attorneys argued that the app is a national security threat because the Chinese government can collect data on Americans and covertly manipulate the content they see.

TikTok said on Thursday that it is undisputed that the app's content recommendation engine and user data are stored in US cloud servers operated by Oracle and moderation on the content that would affect US users are made in the US.

The law allows ByteDance until January 19 to sell TikTok—with the alternative facing a ban—was signed by President Joe Biden on April 24. The White House said they wanted an end to Chinese-based ownership on the grounds of national security but did not want to put in place a total ban on TikTok.

The appeals court is scheduled to hear oral arguments in the legal fight on Sept. 16, thrusting the issue of TikTok's fate deep into the final weeks of the Nov. 5 presidential election.

Developments in the case come after Republican presidential candidate Donald Trump joined TikTok, saying in June he would never support a TikTok ban.

In July, Democratic Presidential Candidate Vice President Kamala Harris joined TikTok and dialled up social media as part of her campaign strategy.

TikTok countered Thursday that the law would divest it of its free-speech right, countering the Justice Department's contention that the content curation decisions of the short video app are "speech of a foreigner" and not protected by the US Constitution.

"By the government's logic, a U.S. newspaper that republishes the content of a foreign publication - Reuters, for example - would lack constitutional protection," the company said.

The law blocks Apple, Alphabet's Google, etc., from offering TikTok and prohibits internet hosting services from providing its back-end services to TikTok unless it is divested by ByteDance.

Fueled by fears in Congress that China might use the app to collect data on Americans or even spy on them, the measure passed overwhelmingly just weeks after its&nbsp;introduction.

The Chinese firm TikTok argued in a federal appeals court on Thursday that the US Department of Justice overstated the social media app's ties to China, urging it to throw out a law necessitating China-based ByteDance to sell TikTok's US assets or face a ban.

The Chinese firm TikTok argued in a federal appeals court on Thursday that the US Department of Justice overstated the social media app's ties to China, urging it to throw out a law necessitating China-based ByteDance to sell TikTok's US assets or face a ban. TikTok, which has sued to overturn the law, said the Justice Department has gotten the facts wrong in the case. Department attorneys argued that the app is a national security threat because the Chinese government can collect data on Americans and covertly manipulate the content they see. TikTok said on Thursday that it is undisputed that the app's content recommendation engine and user data are stored in US cloud servers operated by Oracle and moderation on the content that would affect US users are made in the US. The law allows ByteDance until January 19 to sell TikTok—with the alternative facing a ban—was signed by President Joe Biden on April 24. The White House said they wanted an end to Chinese-based ownership on the grounds of national security but did not want to put in place a total ban on TikTok. The appeals court is scheduled to hear oral arguments in the legal fight on Sept. 16, thrusting the issue of TikTok's fate deep into the final weeks of the Nov. 5 presidential election. Developments in the case come after Republican presidential candidate Donald Trump joined TikTok, saying in June he would never support a TikTok ban. In July, Democratic Presidential Candidate Vice President Kamala Harris joined TikTok and dialled up social media as part of her campaign strategy. TikTok countered Thursday that the law would divest it of its free-speech right, countering the Justice Department's contention that the content curation decisions of the short video app are "speech of a foreigner" and not protected by the US Constitution. "By the government's logic, a U.S. newspaper that republishes the content of a foreign publication - Reuters, for example - would lack constitutional protection," the company said. The law blocks Apple, Alphabet's Google, etc., from offering TikTok and prohibits internet hosting services from providing its back-end services to TikTok unless it is divested by ByteDance. Fueled by fears in Congress that China might use the app to collect data on Americans or even spy on them, the measure passed overwhelmingly just weeks after its introduction.

TikTok challenges US allegations on China links in court appeal

For the first time, the North American Aerospace Defense Command (NORAD) intercepted two Russian and two Chinese nuclear-capable strategic bombers flying together near the Alaska region, on Wednesday (July 24), according to US defence officials.

For the first time, the North American Aerospace Defense Command (NORAD) intercepted two Russian and two Chinese nuclear-capable strategic bombers flying together near the Alaska region, on Wednesday (July 24), according to US defence officials. "The Russian and PRC aircraft remained in international airspace and did not enter American or Canadian sovereign airspace. This Russian and PRC activity in the Alaska ADIZ (Air defence identification zone) is not seen as a threat, and NORAD will continue to monitor competitor activity near North America and meet presence with presence," a statement from NORAD said. The Russian TU-95 Bear and Chinese H-6 bombers did not enter the United States or Canada-controlled airspace, NORAD, a joint bi-national command between the two nations, said. According to the defence officials, US F-16 and F-35 fighter planes and Canadian CF-18 fighter jets conducted the intercept. 'Not aimed at third parties' Chinese and Russian air forces conducted a “joint strategic aerial patrol in the relevant airspace of the Bering Sea” on Thursday (July 25), said China's defence ministry. The ministry also said this joint patrol was part of an annual cooperation plan between the militaries of Moscow and Beijing. The spokesperson for China's defence ministry, Zhang Xiaogang, said that this is the eighth such exercise conducted by the militaries of the two countries since 2019. Watch | Netanyahu in US: Some Democrats boycott Israel PM's Congress address, protests outside Capitol Hill × Zhang said that the exercise was aimed at “further testing and enhancing the level of cooperation between the two air forces, as well as deepening strategic mutual trust and practical cooperation between the two countries.” “This action is not aimed at third parties, it is in line with relevant international laws and international practices and has nothing to do with the current international and regional situation,” he added. While the presence of Russian planes in the Alaskan air defence identification zone is common, Chinese planes are adding a new layer of complexity to the situation. Russian flights into Alaska’s ADIZ are not uncommon. In May, Russia flew four aircraft into Alaska’s ADIZ, which NORAD said “occurs regularly.” Also read: Russian military helicopter Mi-28 crashes, crew killed However, the presence of Chinese aircraft appears to be a new development. General Gregory Guillot, the commander of US Northern Command, in March, said that due to China's continued drive northward, he anticipated seeing aircraft in the Arctic "as soon as this year potentially." “What I have seen is a willingness and a desire by the Chinese to act up there,” Guillot said at a hearing of the Senate Armed Services Committee. “We have seen them in the maritime. We have seen them under the cloud of technical or scientific research, but we think it is certainly multi-mission, including military. And then I expect to see air activity in the Alaska part of the Arctic as soon as this year, potentially," he added. (With inputs from agencies)

NORAD intercepts Russian and Chinese nuclear bombers near Alaska for first time

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

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

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

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

The United States Department of Justice (DOJ) said a Chinese national was arrested in an international operation on charges of creating and using malware that was used in cyber attacks, large-scale fraud and child exploitation.

Singapore's Straits Times newspaper reported on Thursday that the man, 35-year-old Wang Yunhe, was arrested in the city-state on May 24.

Wang's arrest follows last August's high-profile sweep of 10 Chinese citizens holding multiple nationalities charged with laundering more than $2 billion through the Asian financial hub.

The Department of Justice said in a statement dated May 29 that Wang and unnamed others allegedly "created and disseminated malware to compromise and amass a network of millions of residential Windows computers worldwide".

From 2018 until July 2022, Wang received $99 million from sales of the hijacked proxied IP addresses either in cryptocurrency or fiat currency, the DOJ said.

It said cybercriminals who bought access to the infected IP addresses then bypassed financial fraud detection systems and stole "billions of dollars from financial institutions, credit card issuers, and federal lending programmes".

This includes fraudulent loss exceeding $5.9 billion from 560,000 fraudulent unemployment insurance claims originating from compromised IP addresses, said the DOJ.

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"Wang used the illicitly gained proceeds to purchase real property in the United States, St. Kitts and Nevis, China, Singapore, Thailand, and the United Arab Emirates," the DOJ statement said.

It said Wang's assets and properties included sports cars, more than a dozen domestic and international bank accounts, over two dozen cryptocurrency wallets, luxury watches and 21 properties across several countries.

Matthew S. Axelrod, assistant secretary for export enforcement at the U.S. Department of Commerce’s Bureau of Industry and Security, said the case read like a screenplay.

"A scheme to sell access to millions of malware-infected computers worldwide, enabling criminals over the world to steal billions of dollars, transmit bomb threats, and exchange child exploitation materials—then using the scheme’s nearly $100 million in profits to buy luxury cars, watches, and real estate," said Axelrod. 
DOJ said the operation was a multiagency effort led by law enforcement in the U.S., Singapore, Thailand, and Germany.

The United States Department of Justice (DOJ) said a Chinese national was arrested in an international operation on charges of creating and using malware that was used in cyber attacks, large-scale fraud and child exploitation.

The United States Department of Justice (DOJ) said a Chinese national was arrested in an international operation on charges of creating and using malware that was used in cyber attacks, large-scale fraud and child exploitation. Singapore's Straits Times newspaper reported on Thursday that the man, 35-year-old Wang Yunhe, was arrested in the city-state on May 24. Wang's arrest follows last August's high-profile sweep of 10 Chinese citizens holding multiple nationalities charged with laundering more than $2 billion through the Asian financial hub. The Department of Justice said in a statement dated May 29 that Wang and unnamed others allegedly "created and disseminated malware to compromise and amass a network of millions of residential Windows computers worldwide". From 2018 until July 2022, Wang received $99 million from sales of the hijacked proxied IP addresses either in cryptocurrency or fiat currency, the DOJ said. It said cybercriminals who bought access to the infected IP addresses then bypassed financial fraud detection systems and stole "billions of dollars from financial institutions, credit card issuers, and federal lending programmes". This includes fraudulent loss exceeding $5.9 billion from 560,000 fraudulent unemployment insurance claims originating from compromised IP addresses, said the DOJ. Also read: Netanyahu to lose power? Gantz's centrist party submits bill to dissolve Israeli parliament "Wang used the illicitly gained proceeds to purchase real property in the United States, St. Kitts and Nevis, China, Singapore, Thailand, and the United Arab Emirates," the DOJ statement said. It said Wang's assets and properties included sports cars, more than a dozen domestic and international bank accounts, over two dozen cryptocurrency wallets, luxury watches and 21 properties across several countries. Matthew S. Axelrod, assistant secretary for export enforcement at the U.S. Department of Commerce’s Bureau of Industry and Security, said the case read like a screenplay. "A scheme to sell access to millions of malware-infected computers worldwide, enabling criminals over the world to steal billions of dollars, transmit bomb threats, and exchange child exploitation materials—then using the scheme’s nearly $100 million in profits to buy luxury cars, watches, and real estate," said Axelrod. DOJ said the operation was a multiagency effort led by law enforcement in the U.S., Singapore, Thailand, and Germany.

US DOJ says Chinese national arrested on malware charges in international operation

A California professor has created an app that may help US wean itself off Chinese goods in an easier and more efficient way. The app, designed by Kyle Handley, associate professor of economics at the University of California San Diego School of Global Policy and Strategy (GPS), enables users to see what goods will be impacted by the recent US tariffs on China and how can buyers shift their supply chains to gain access to cheaper alternatives from other nations.

A California professor has created an app that may help US wean itself off Chinese goods in an easier and more efficient way. The app, designed by Kyle Handley, associate professor of economics at the University of California San Diego School of Global Policy and Strategy (GPS), enables users to see what goods will be impacted by the recent US tariffs on China and how can buyers shift their supply chains to gain access to cheaper alternatives from other nations. The Biden administration had introduced additional tariffs on Chinese goods, including electric vehicles, semiconductors, solar cells and batteries, earlier this month. Also read: EV growth in China, US could lead to slowing of gasoline demand this year So, Handley created the Biden Tariff Analyzer App to help governments, suppliers and customers identify vulnerabilities in supply chains and cheaper alternatives for Chinese goods. For instance, the app will provide the top 10 alternative suppliers of each product attracting higher duty if imported from China. .@KyleLHandley developed an app analyzing the new Biden tariffs on China. It is a tool for businesses and governments to identify quickly what problem imports will be and whether alternative source countries are available @GPS_UCSD @UCSanDiego https://t.co/fHrvzkwsk8 — Christine Clark (@christineeclark) May 24, 2024 × “The new tariffs are likely politically motivated by the administration, so that it can appear to be ‘tough on China’,” said Handley. “For example, the administration placed a 100 per cent tariff on electric vehicles (EVs), yet the US imports only 2 per cent of EVs from China,” he adds. However, challenges remain. The app reveals that non-Chinese alternatives are difficult to find for some products, which may impede Washington's efforts to reduce its dependence on the communist nation. For instance, the US introduced a 25 per cent tariff on permanent magnets, which are used in batteries and other consumer goods. Now, the problem is that China manufactures about 80 per cent of these magnets. Also read: India, China may engage in `armed conflict` amid strained ties, claims US intelligence assessment “This could be because the administration doesn’t know themselves where we could get enough graphite or permanent magnets needed to produce enough batteries to meet demand,” Handley said. “The reality is these tariffs may be pushed out even further in time because Biden is urging our allies to also be tough on China when it comes to trade. If everyone shifts toward Japan, for example, for imports of permanent magnets and Japan can’t ramp up quickly from its 3 per cent market share, then we will have a yet another supply chain problem,” he added. (With inputs from agencies)

Biden Tariff Analyzer: US professor creates app to help identify non-Chinese suppliers

Reacting to US government's decision of raising tariffs on Chinese imports, Wang Wenbin, spokeswoman for the Chinese foreign ministry, told reporters on Tuesday that China opposes "the unilateral imposition of tariffs which violate (World Trade Organization) rules, and will take all necessary actions to protect its legitimate rights.

Reacting to US government's decision of raising tariffs on Chinese imports, Wang Wenbin, spokeswoman for the Chinese foreign ministry, told reporters on Tuesday that China opposes "the unilateral imposition of tariffs which violate (World Trade Organization) rules, and will take all necessary actions to protect its legitimate rights." “This will severely affect the atmosphere for bilateral cooperation," China's commerce ministry was quoted as saying by AFP. Beijing asked the United States to "promptly correct its erroneous actions and revoke the additional tariff measures imposed on China." Earlier, in an effort to impede Beijing's development of vital technology and give priority to US production, President Joe Biden announced new tariffs on $18 billion worth of Chinese imports in a few key industries that are considered critical to national security. Imported steel and aluminum, legacy semiconductors, electric vehicles, battery components, critical minerals, solar cells, cranes, and medical products will all be subject to higher tariffs. The new tariff rates will go into effect over the course of the next two years. They start at 100% for electric cars, 50% for solar components, and 25% for every other sector. “China’s using the same playbook it has before to power its own growth at the expense of others. China’s simply too big to play by its own rules,” said Lael Brainard, director of the White House National Economic Council. Former President Donald Trump imposed a tariff programme on $300 billion in Chinese imports during his presidency, citing a clause in US trade law that permits tariffs to be used to hinder competition that threatens national security interests. The same trade law mandates that the efficacy of such tariff schemes be examined every four years, and the Biden administration's decision comes after the outcome of the said assessment. Also read: US and China ratchet up AI arms race amid growing strategic concerns Officials at the White House said they also changed the programme's criteria to match Biden administration's policy goals include the shift to renewable energy. “China can’t be the only country that produces clean technology for the world we need. We need diversified, not concentrated, production of our most critical goods and technologies. … That’s the kind of dynamic we think will produce resilient supply chains and clean technology,” a senior administration official told CNN. “It was important to have a large enough step-up in the tariffs to ensure that we try to level the playing field,” another senior administration official told CNN. (With inputs from agencies)

China fumes as Biden administration ramps up tariffs on Chinese imports

In a first since 2022, US Defence Secretary Lloyd Austin had a telephone conversation with Chinese Admiral Dong Jun on Tuesday (April 16).

US Defence Secretary and his Chinese counterpart talked about “defence relations” and international security concerns ranging from North Korea's recent provocations to Russia's war with Ukraine.

According to the Pentagon, Austin and Chinese Admiral Dong Jun spoke about "defence relations" and international security concerns ranging from North Korea's recent provocations to Russia's unjustified conflict in Ukraine. "Respect for high seas freedom of navigation as guaranteed under international law, especially in the South China Sea," was another point made by the US Defense Secretary.

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Conversely, Beijing said that it would not hesitate to employ force to get access to the South China Sea and seize control of Taiwan. China has employed underwater barriers, a military-grade laser, and collision and ramming methods to thwart Philippine patrol and resupply operations amid escalating tensions with the Philippines.

A senior defence official, &nbsp;ahead of the talks, said the call between Austin and Dong was an “important step” in keeping lines of communication open between the two military powers.

“These engagements provide us with opportunities to prevent competition from veering into conflict by speaking candidly about our concerns. That includes the People’s Republic of China's behaviour in the South China Sea, as well as the importance of peace and stability across the Taiwan Strait,” a senior defence official told reporters on condition of anonymity.

Dong, who has been China's minister of national defence since December, had never before talked to Austin before the call on Tuesday. The conversation between Austin and Dong is the latest in a string of recent discussions between US and Chinese defence officials. In December, US General C.Q. Brown, Chairman of the Joint Chiefs of Staff, talked with his Chinese military counterpart.

&nbsp;

In a first since 2022, US Defence Secretary Lloyd Austin had a telephone conversation with Chinese Admiral Dong Jun on Tuesday (April 16). US Defence Secretary and his Chinese counterpart talked about “defence relations” and international security concerns ranging from North Korea's recent provocations to Russia's war with Ukraine.

In a first since 2022, US Defence Secretary Lloyd Austin had a telephone conversation with Chinese Admiral Dong Jun on Tuesday (April 16). US Defence Secretary and his Chinese counterpart talked about “defence relations” and international security concerns ranging from North Korea's recent provocations to Russia's war with Ukraine. According to the Pentagon, Austin and Chinese Admiral Dong Jun spoke about "defence relations" and international security concerns ranging from North Korea's recent provocations to Russia's unjustified conflict in Ukraine. "Respect for high seas freedom of navigation as guaranteed under international law, especially in the South China Sea," was another point made by the US Defense Secretary. Also read: Indo-Pacific is regaining salience amid West Asia crisis, US-China strategic contestation Conversely, Beijing said that it would not hesitate to employ force to get access to the South China Sea and seize control of Taiwan. China has employed underwater barriers, a military-grade laser, and collision and ramming methods to thwart Philippine patrol and resupply operations amid escalating tensions with the Philippines. A senior defence official, ahead of the talks, said the call between Austin and Dong was an “important step” in keeping lines of communication open between the two military powers. “These engagements provide us with opportunities to prevent competition from veering into conflict by speaking candidly about our concerns. That includes the People’s Republic of China's behaviour in the South China Sea, as well as the importance of peace and stability across the Taiwan Strait,” a senior defence official told reporters on condition of anonymity. Dong, who has been China's minister of national defence since December, had never before talked to Austin before the call on Tuesday. The conversation between Austin and Dong is the latest in a string of recent discussions between US and Chinese defence officials. In December, US General C.Q. Brown, Chairman of the Joint Chiefs of Staff, talked with his Chinese military counterpart.

US defence secretary and Chinese counterpart hold first talks since 2022

The chief of US space agency NASA has told lawmakers in Washington that China is using civilian programmes to hide military objectives in space.

"China has made extraordinary strides [in space] especially in the last 10 years, but they are very, very secretive," Bill Nelson told the appropriations committee of the US House of Representatives as he testified on the US space agency's 2025 budget request.

"We believe that a lot of their so-called civilian space programme is a military programme. And I think, in effect, we are in a race."

Nelson also stressed that it was "incumbent on us" get to the moon, first as he warned: "my concern is if China got there first and suddenly said 'ok this is our territory, you stay out'."

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The NASA chief said that the US was not going to lose its "global edge" in space, "but you got to be realistic that China is really throwing a lot of money at it and they've got a lot of room in their budget to grow."

"I think that we just better not let down our guard," Nelson added.

The NASA chief said he hoped "the Chinese space programme would come to its senses and understand that civilian space is for peaceful uses," but added: "We have not seen that demonstrated by China."

With the Artemis programme NASA wants to put humans on the moon again after more than 50 years. The moon landing mission Artemis 3 was recently postponed to September 2026.

The long-term goal of Artemis is to establish a permanent lunar base as a foundation for missions to Mars.

The chief of US space agency NASA has told lawmakers in Washington that China is using civilian programmes to hide military objectives in space. "China has made extraordinary strides [in space] especially in the last 10 years, but they are very, very secretive," Bill Nelson told the appropriations committee of the US House of Representatives as he testified on the US space agency's 2025 budget request.

The chief of US space agency NASA has told lawmakers in Washington that China is using civilian programmes to hide military objectives in space. "China has made extraordinary strides [in space] especially in the last 10 years, but they are very, very secretive," Bill Nelson told the appropriations committee of the US House of Representatives as he testified on the US space agency's 2025 budget request. "We believe that a lot of their so-called civilian space programme is a military programme. And I think, in effect, we are in a race." Nelson also stressed that it was "incumbent on us" get to the moon, first as he warned: "my concern is if China got there first and suddenly said 'ok this is our territory, you stay out'." Also read: NASA's Juno captures closest views of erupting volcanoes on Jupiter's moon Io. Watch! The NASA chief said that the US was not going to lose its "global edge" in space, "but you got to be realistic that China is really throwing a lot of money at it and they've got a lot of room in their budget to grow." "I think that we just better not let down our guard," Nelson added. The NASA chief said he hoped "the Chinese space programme would come to its senses and understand that civilian space is for peaceful uses," but added: "We have not seen that demonstrated by China." With the Artemis programme NASA wants to put humans on the moon again after more than 50 years. The moon landing mission Artemis 3 was recently postponed to September 2026. The long-term goal of Artemis is to establish a permanent lunar base as a foundation for missions to Mars.

NASA chief warns of China's secretive space militarisation, urges accelerated moon mission

Two years of the Russia-Ukraine war and six months of the Israel-Hamas conflict are now followed ominously by Iran’s unprecedented airborne attack on Israel. With West Asia facing the prospect of a major regional conflagration, these developments seemingly robbed the Indo-Pacific region of some of its salience.&nbsp;

But despite the ongoing armed confrontations in Europe and West Asia, international attention remains pivoted to the complex power dynamics in East Asia.

This is so partly due to China's frequent and coercive water canon attacks on the Philippine vessels, and partly because the Biden administration remains anxious to leave behind a rich legacy of strong alliances and partnerships.

<img alt="main img" src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2024/03/24/420548-untitled-design-2024-03-24t140454918.png?imwidth=400" />

The Chinese Coast Guard on March 23, 2024 used water cannons against Filipino ships attempting to deliver supplies to troops at an outpost in the West Philippine Sea which Beijing asserts as the South China Sea | X/@sidhant/WION

Deterring China from actions that threaten US interests in the Indo-Pacific has been Washington’s key goal. Lines are thus being drawn in the Pacific Ocean that may define the future trajectory of the US-China strategic contestation.&nbsp;

Several important and interrelated developments, in this context, need to be analyzed to get the macro picture right.&nbsp;

<h2>US-Japan summit&nbsp;</h2>

Prime Minister Kishida Fumio’s official visit to Washington including its key components – a rare state dinner at the White House and a joint address to Congress – opened "a new era of US-Japan strategic cooperation", with an added emphasis that the two nations would work as "global partners for the future". Strengthening defense and security cooperation formed an essential element of the novel approach.<img alt="Kishida Biden" data-entity-type="file" data-entity-uuid="155f0100-7c91-46ec-81cd-5e533477ab00" src="//cdn.wionews.com/sites/default/files/inline-images/KishidaBiden.png" />

US President Joe Biden and Japanese Prime Minister Fumio Kishida take part in an official White House State Arrival ceremony on the South Lawn of the White House in Washington, DC, US, April 10, 2024 | Reuters

President Joe Biden spoke of America’s "unwavering commitment" to Japan’s defense. The US welcomed Japan’s decision to enhance its defense capability by raising its defense budget to 2 per cent of GDP in the fiscal year 2027.&nbsp;

The Washington visit resulted in the announcement of new strategic initiatives to strengthen the alliance.

First, the two nations would "upgrade" their respective command and control frameworks to secure "greater interoperability and planning" between the US and Japanese forces.

Second, the goal to deepen "intelligence, surveillance and Reconnaissance cooperation" would be prioritized.

Third, efforts would be made "to strengthen the Alliance force posture, build high-end base capabilities and increase preparations to enhance deterrence."

Fourth, defense and foreign ministers have been tasked to develop "this new relationship" through their future meetings in the '2+2' format. The joint statement is thus both candid and specific about the future of defence cooperation.&nbsp;

In his well-received address to Congress, PM Kishida built a compelling case for a closer partnership with the US.

"The post-Cold War era is already behind us," he said, "and we are now at an inflection point that will define the next stage of human history."

He stressed that the US leadership was "indispensable" but "the US should not be expected to do it all, unaided and on your own."

The closest friend of the US – the people of Japan – are "with you," he emphasised, "to assure the survival of liberty."

<h2>Trilateral summit&nbsp;</h2>

During the working visit of Ferdinand R. Marcos Jr., President of the Philippines, to Washington, a historic trilateral summit was hosted by President &nbsp;Biden on 11 April, with PM Kishida as the other eminent participant.

Their joint vision statement highlighted the summit’s important outcomes.

Also watch |&nbsp;US-Japan-Philippines summit: First trilateral summit between Biden, Kishida &amp; Marcos

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The common goal, they affirmed, was to advance the security and prosperity of "our nations, the Indo-Pacific, and the world." Biden clearly stated that the US commitments to the defense of Japan and the Philippines remained "ironclad."&nbsp;&nbsp;

Perhaps the most telling portion of the vision statement relates to the three nations’ partnership on peace and security. It contains a severe and frank criticism of China. The three nations expressed serious concern over the PRC’s "dangerous and aggressive behaviour" in the South China Sea and the East China Sea, the militarization of reclaimed features, coercive use of the Coast Guard and maritime militia vessels, and

China's "repeated obstruction" of Philippine vessels' exercise of high seas freedom of navigation.

They also underlined the importance of peace and stability across the Taiwan Strait as indispensable for global security.&nbsp;

Viewing China as a common and serious threat, the three nations – the US, Japan and the Philippines – are set to deepen maritime cooperation, conduct at-sea trilateral exercises, and improve interoperability.

Separately, Japan and the Philippines have also been engaged in strengthening their bilateral cooperation. A reciprocal access agreement is being negotiated by them, which will allow them to send military forces to each other’s territory.

Moreover, the US and Japan welcomed growing defense cooperation between the Philippines and South Korea on the one hand, and the Philippines and Australia on the other. Clearly, China’s hostile actions have provided much ballast for deepening naval partnerships in East Asia.&nbsp;

China's reaction appeared along the expected lines. The foreign ministry spokesperson said Beijing “firmly opposes the relevant countries’ manipulating bloc politics” and "any behaviour that provokes or lays plans for opposition and hurts other countries’ strategic security and interests."

She &nbsp;criticised the trilateral summit participants for "engaging in close cliques that exclude others in the region."

She dismissed criticism of China as "wanton smears and attacks." &nbsp;&nbsp;

<h2>AUKUS</h2>

Since its launch in September 2021, the strategic partnership of alliance members – Australia, the UK, and the US – has been moving forward with its specific goal of providing Australia the conventionally armed, nuclear powered submarine capability.

A meeting of top officials of the three countries, held in December 2023, assessed the progress as "exceptional". Of late, policy thinking favours creating linkages with other appropriate nations. &nbsp;Japan is the prime candidate. In a statement on 8 April, the three governments confirmed that plans were afoot to engage Japan in specific technological areas under the Pillar II of AUKUS.&nbsp;

Other hopefuls are Canada and New Zealand. Questions about what the former could bring to the table have been raised. As to New Zealand, these are still early days, Wellington seems interested in exploring the possibilities. Foreign Minister Winston Peters observed, “Our job is to find out all the facts, all the aspects of what we are talking about and then as a country make a decision.”

<h2>Indian angle&nbsp;</h2>

New Delhi has been watching these developments with deep interest. As a member of the Quad, India is amply aware that the strategic engagement of fellow members – the US, Japan and Australia – with each other and with other countries will impact this nation in many ways.

External Affairs Minister S. Jaishankar’s recent visit to the Philippines has provided much clarity about the changing dynamics in the region. The continuing dialogue with the US during the visit of Foreign Secretary Vinay Kwatra to Washington last week and the forthcoming visit of National Security Advisor Jake Sullivan to Delhi would also help.<img alt="India's External Affairs Minister Dr S. Jaishankar with Philippines’ Secretary of Foreign Affairs Enrique Manalo in Manila" data-entity-type="file" data-entity-uuid="7ff60d12-eeee-4849-b002-84f4f196ffca" src="//cdn.wionews.com/sites/default/files/inline-images/jaishankarphilippines.png" />

India's External Affairs Minister Dr S. Jaishankar with Philippines’ Secretary of Foreign Affairs Enrique Manalo in Manila on March 26, 2024 | Reuters

The Indian side is likely to work for hosting the next Quad summit during the period between the end of the Indian elections and the commencement of the US presidential elections. But, as of now, it seems an uncertain prospect.

Given the vast expanse of the Indo-Pacific region and the increasing complexity of US-China ties, this region is certain to command much policy attention in the coming months.

With its strategic location in the Indo-Pacific, India can afford to neglect neither West Asia nor East Asia.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Two years of the Russia-Ukraine war and six months of the Israel-Hamas conflict are now followed ominously by Iran’s unprecedented airborne attack on Israel. With West Asia facing the prospect of a major regional conflagration, these developments seemingly robbed the Indo-Pacific region of some of its salience.

Two years of the Russia-Ukraine war and six months of the Israel-Hamas conflict are now followed ominously by Iran’s unprecedented airborne attack on Israel. With West Asia facing the prospect of a major regional conflagration, these developments seemingly robbed the Indo-Pacific region of some of its salience. But despite the ongoing armed confrontations in Europe and West Asia, international attention remains pivoted to the complex power dynamics in East Asia. This is so partly due to China's frequent and coercive water canon attacks on the Philippine vessels, and partly because the Biden administration remains anxious to leave behind a rich legacy of strong alliances and partnerships. The Chinese Coast Guard on March 23, 2024 used water cannons against Filipino ships attempting to deliver supplies to troops at an outpost in the West Philippine Sea which Beijing asserts as the South China Sea | X/@sidhant/WION Deterring China from actions that threaten US interests in the Indo-Pacific has been Washington’s key goal. Lines are thus being drawn in the Pacific Ocean that may define the future trajectory of the US-China strategic contestation. Several important and interrelated developments, in this context, need to be analyzed to get the macro picture right. US-Japan summit Prime Minister Kishida Fumio’s official visit to Washington including its key components – a rare state dinner at the White House and a joint address to Congress – opened "a new era of US-Japan strategic cooperation", with an added emphasis that the two nations would work as "global partners for the future". Strengthening defense and security cooperation formed an essential element of the novel approach. US President Joe Biden and Japanese Prime Minister Fumio Kishida take part in an official White House State Arrival ceremony on the South Lawn of the White House in Washington, DC, US, April 10, 2024 | Reuters President Joe Biden spoke of America’s "unwavering commitment" to Japan’s defense. The US welcomed Japan’s decision to enhance its defense capability by raising its defense budget to 2 per cent of GDP in the fiscal year 2027. The Washington visit resulted in the announcement of new strategic initiatives to strengthen the alliance. First, the two nations would "upgrade" their respective command and control frameworks to secure "greater interoperability and planning" between the US and Japanese forces. Second, the goal to deepen "intelligence, surveillance and Reconnaissance cooperation" would be prioritized. Third, efforts would be made "to strengthen the Alliance force posture, build high-end base capabilities and increase preparations to enhance deterrence." Fourth, defense and foreign ministers have been tasked to develop "this new relationship" through their future meetings in the '2+2' format. The joint statement is thus both candid and specific about the future of defence cooperation. In his well-received address to Congress, PM Kishida built a compelling case for a closer partnership with the US. "The post-Cold War era is already behind us," he said, "and we are now at an inflection point that will define the next stage of human history." He stressed that the US leadership was "indispensable" but "the US should not be expected to do it all, unaided and on your own." The closest friend of the US – the people of Japan – are "with you," he emphasised, "to assure the survival of liberty." Trilateral summit During the working visit of Ferdinand R. Marcos Jr., President of the Philippines, to Washington, a historic trilateral summit was hosted by President Biden on 11 April, with PM Kishida as the other eminent participant. Their joint vision statement highlighted the summit’s important outcomes. Also watch | US-Japan-Philippines summit: First trilateral summit between Biden, Kishida & Marcos × The common goal, they affirmed, was to advance the security and prosperity of "our nations, the Indo-Pacific, and the world." Biden clearly stated that the US commitments to the defense of Japan and the Philippines remained "ironclad." Perhaps the most telling portion of the vision statement relates to the three nations’ partnership on peace and security. It contains a severe and frank criticism of China. The three nations expressed serious concern over the PRC’s "dangerous and aggressive behaviour" in the South China Sea and the East China Sea, the militarization of reclaimed features, coercive use of the Coast Guard and maritime militia vessels, and China's "repeated obstruction" of Philippine vessels' exercise of high seas freedom of navigation. They also underlined the importance of peace and stability across the Taiwan Strait as indispensable for global security. Viewing China as a common and serious threat, the three nations – the US, Japan and the Philippines – are set to deepen maritime cooperation, conduct at-sea trilateral exercises, and improve interoperability. Separately, Japan and the Philippines have also been engaged in strengthening their bilateral cooperation. A reciprocal access agreement is being negotiated by them, which will allow them to send military forces to each other’s territory. Moreover, the US and Japan welcomed growing defense cooperation between the Philippines and South Korea on the one hand, and the Philippines and Australia on the other. Clearly, China’s hostile actions have provided much ballast for deepening naval partnerships in East Asia. China's reaction appeared along the expected lines. The foreign ministry spokesperson said Beijing “firmly opposes the relevant countries’ manipulating bloc politics” and "any behaviour that provokes or lays plans for opposition and hurts other countries’ strategic security and interests." She criticised the trilateral summit participants for "engaging in close cliques that exclude others in the region." She dismissed criticism of China as "wanton smears and attacks." AUKUS Since its launch in September 2021, the strategic partnership of alliance members – Australia, the UK, and the US – has been moving forward with its specific goal of providing Australia the conventionally armed, nuclear powered submarine capability. A meeting of top officials of the three countries, held in December 2023, assessed the progress as "exceptional". Of late, policy thinking favours creating linkages with other appropriate nations. Japan is the prime candidate. In a statement on 8 April, the three governments confirmed that plans were afoot to engage Japan in specific technological areas under the Pillar II of AUKUS. Other hopefuls are Canada and New Zealand. Questions about what the former could bring to the table have been raised. As to New Zealand, these are still early days, Wellington seems interested in exploring the possibilities. Foreign Minister Winston Peters observed, “Our job is to find out all the facts, all the aspects of what we are talking about and then as a country make a decision.” Indian angle New Delhi has been watching these developments with deep interest. As a member of the Quad, India is amply aware that the strategic engagement of fellow members – the US, Japan and Australia – with each other and with other countries will impact this nation in many ways. External Affairs Minister S. Jaishankar’s recent visit to the Philippines has provided much clarity about the changing dynamics in the region. The continuing dialogue with the US during the visit of Foreign Secretary Vinay Kwatra to Washington last week and the forthcoming visit of National Security Advisor Jake Sullivan to Delhi would also help. India's External Affairs Minister Dr S. Jaishankar with Philippines’ Secretary of Foreign Affairs Enrique Manalo in Manila on March 26, 2024 | Reuters The Indian side is likely to work for hosting the next Quad summit during the period between the end of the Indian elections and the commencement of the US presidential elections. But, as of now, it seems an uncertain prospect. Given the vast expanse of the Indo-Pacific region and the increasing complexity of US-China ties, this region is certain to command much policy attention in the coming months. With its strategic location in the Indo-Pacific, India can afford to neglect neither West Asia nor East Asia. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Indo-Pacific is regaining salience amid West Asia crisis, US-China strategic contestation

During her recent four-day visit to Guangzhou and Beijing, US Treasury Secretary Janet Yellen warned Chinese economic leaders regarding their overinvestment in factory capacity for clean energy goods, calling it unacceptable.

Although she tried to make her Chinese hosts comfortable, Yellen is tasked with the challenge of advising President Joe Biden on potential actions to address this issue, which could include raising tariffs on Chinese electric vehicles, solar panels, and other clean energy products to safeguard US producers and workers.

Yellen's discussions with Chinese Vice Premier He Lifeng&nbsp;focused on the topic of "balanced growth". These include worries such as industrial capacity and weak global demand.

However, her major complaint regarding China's massive export surge of inexpensive EVs and solar panels, supported by the state, surpassing domestic demand, drew criticism.

China trade experts suggest that alongside the ongoing dialogue, the Biden administration may consider new trade actions, such as a "Section 301" tariff investigation or a complaint filed with the World Trade Organisation.

Former President Donald Trump operated Section 301 to impose tariffs on Chinese imports in 2018, and the Biden administration is currently reviewing whether to renew these duties.

Even with the diplomatic tensions, Yellen's approach during her visit received applause from Chinese officials, academics, and social media users.

Unlike her previous trip to China in July 2023, Yellen took time to engage socially with her hosts and explore cultural sites, including the Forbidden City in Beijing.

Symbolic gestures, such as exchanging gifts with Vice Premier He during a Pearl River boat cruise in Guangzhou, spotlight the bond between the two nations.

However, regardless of the positive gestures, there remain misunderstandings over Yellen's claim about China's overcapacity in green energy manufacturing.

Chinese Commerce Minister Wang Wentao proved false claims of overcapacity, attributing the success of Chinese EV makers to innovation rather than subsidies.

A Chinese government adviser also noted that&nbsp;overcapacity is a topic for discussion but not easily resolved.

Despite the challenges, Yellen's visit and the changing relationship with Chinese officials&nbsp;gave her a major stance in the ongoing debate over US tariffs.

Wendy Cutler, a former US trade negotiator, supports Yellen's influence but notes the difficulty of advocating for more dialogue amid rising anti-China sentiment in the United States, particularly during a presidential election year.

(With inputs from Reuters)

During her recent four-day visit to Guangzhou and Beijing, US Treasury Secretary Janet Yellen warned Chinese economic leaders regarding their overinvestment in factory capacity for clean energy goods, calling it unacceptable.

During her recent four-day visit to Guangzhou and Beijing, US Treasury Secretary Janet Yellen warned Chinese economic leaders regarding their overinvestment in factory capacity for clean energy goods, calling it unacceptable. Although she tried to make her Chinese hosts comfortable, Yellen is tasked with the challenge of advising President Joe Biden on potential actions to address this issue, which could include raising tariffs on Chinese electric vehicles, solar panels, and other clean energy products to safeguard US producers and workers. Yellen's discussions with Chinese Vice Premier He Lifeng focused on the topic of "balanced growth". These include worries such as industrial capacity and weak global demand. However, her major complaint regarding China's massive export surge of inexpensive EVs and solar panels, supported by the state, surpassing domestic demand, drew criticism. China trade experts suggest that alongside the ongoing dialogue, the Biden administration may consider new trade actions, such as a "Section 301" tariff investigation or a complaint filed with the World Trade Organisation. Former President Donald Trump operated Section 301 to impose tariffs on Chinese imports in 2018, and the Biden administration is currently reviewing whether to renew these duties. Even with the diplomatic tensions, Yellen's approach during her visit received applause from Chinese officials, academics, and social media users. Unlike her previous trip to China in July 2023, Yellen took time to engage socially with her hosts and explore cultural sites, including the Forbidden City in Beijing. Symbolic gestures, such as exchanging gifts with Vice Premier He during a Pearl River boat cruise in Guangzhou, spotlight the bond between the two nations. However, regardless of the positive gestures, there remain misunderstandings over Yellen's claim about China's overcapacity in green energy manufacturing. Chinese Commerce Minister Wang Wentao proved false claims of overcapacity, attributing the success of Chinese EV makers to innovation rather than subsidies. A Chinese government adviser also noted that overcapacity is a topic for discussion but not easily resolved. Despite the challenges, Yellen's visit and the changing relationship with Chinese officials gave her a major stance in the ongoing debate over US tariffs. Wendy Cutler, a former US trade negotiator, supports Yellen's influence but notes the difficulty of advocating for more dialogue amid rising anti-China sentiment in the United States, particularly during a presidential election year. (With inputs from Reuters)

Yellen's China Visit: Clean Energy Trade Talks

China is too large to export its way to rapid growth -- that's US Treasury Secretary Janet Yellen's message to the asian powerhouse. Yellen, who is on a four-day visit to china, has flagged concerns over the economic fallout from Beijing's excess manufacturing capacity.

Yellen: China too large to export its way to rapid growth

In pics | Thousands flock to Washington DC zoo to bid goodbye to giant pandas

Top officials from China and the United States held "constructive and candid" talks on a range of maritime issues in Beijing, the State Department said Friday (Nov 3).&nbsp;

This can be seen as another step in the modest process to thaw relations between the two nations ahead of a meeting between Chinese leader Xi Jinping and US President Joe Biden this month in San Francisco.&nbsp;

Mark B Lambert, who is the US Department of State China coordinator and deputy assistant secretary for China and Taiwan, met the Chinese Director-General for Boundary and Ocean Affairs Hong Liang.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/technology/humanoid-robots-to-shape-future-of-chinese-economy-ministry-hints-so-654841">Humanoid robots to shape future of Chinese economy? Ministry hints so</a>&nbsp;

The State Department said in a statement that the "two sides held substantive, constructive, and candid discussions on a range of maritime issues, including the situation in the South China Sea and East China Sea".&nbsp;

The statement further added that the US "underscored concerns" with Beijing's "dangerous and unlawful actions in the South China Sea".&nbsp;

It included China's "obstruction" last month of a Philippine resupply mission at Second Thomas Shoal and "its unsafe intercept of a US aircraft on October 24".&nbsp;

Also read: <a href="https://www.wionews.com/world/china-sizeable-hole-spotted-in-parachute-used-by-astronauts-landing-from-tiangong-space-station-watch-654309">Sizeable hole spotted in parachute used by astronauts landing from Tiangong space station</a>&nbsp;

The meeting was also confirmed by the Chinese state media, but it did not provide details.

As quoted by the South China Morning Post (SCMP), Rick Waters, said on Thursday that the danger of one of these close calls spinning out of control was serious. Waters served as the State Department's deputy assistant secretary for China and Taiwan until late June and is now managing director at the Eurasia Group.&nbsp;

Waters said, "Actually, in some ways the risk that I worry about next year are not even about the [US] election. It's … this dramatic increase in unsafe military intercepts of US and allied aircraft along [China's] periphery. These are happening now at a rate of two to three a week."&nbsp;

This meeting comes after recent high-level diplomacy, including talks between US Secretary of State Antony Blinken and National Security Adviser Jake Sullivan and Chinese Foreign Minister Wang Yi in Washington.&nbsp;

Watch:&nbsp;Anthony Albanese to hold talks with Xi Jinping&nbsp;

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China sought to shore up its vast territorial claims over virtually the entire South China Sea by building island bases on coral atolls nearly a decade ago.&nbsp;The United States&nbsp;responded by sending its warships through the region in what it calls freedom of operation missions.

The US has no claims itself but has deployed Navy ships and aircraft for decades to patrol and promote free navigation in international waterway and airspace.

China routinely objects to any action by the US&nbsp;Military in the region. The other parties the Philippines, Vietnam, Malaysia, Taiwan and Brunei&nbsp;claim all or part of the sea, through which approximately $5 trillion in goods are shipped every year.

(With inputs from agencies)&nbsp;

Top officials from China and the United States held "constructive and candid" talks on a range of maritime issues in Beijing, the State Department said Friday (Nov 3).

Top officials from China and the United States held "constructive and candid" talks on a range of maritime issues in Beijing, the State Department said Friday (Nov 3). This can be seen as another step in the modest process to thaw relations between the two nations ahead of a meeting between Chinese leader Xi Jinping and US President Joe Biden this month in San Francisco. Mark B Lambert, who is the US Department of State China coordinator and deputy assistant secretary for China and Taiwan, met the Chinese Director-General for Boundary and Ocean Affairs Hong Liang. Also read: Humanoid robots to shape future of Chinese economy? Ministry hints so The State Department said in a statement that the "two sides held substantive, constructive, and candid discussions on a range of maritime issues, including the situation in the South China Sea and East China Sea". The statement further added that the US "underscored concerns" with Beijing's "dangerous and unlawful actions in the South China Sea". It included China's "obstruction" last month of a Philippine resupply mission at Second Thomas Shoal and "its unsafe intercept of a US aircraft on October 24". Also read: Sizeable hole spotted in parachute used by astronauts landing from Tiangong space station The meeting was also confirmed by the Chinese state media, but it did not provide details. As quoted by the South China Morning Post (SCMP), Rick Waters, said on Thursday that the danger of one of these close calls spinning out of control was serious. Waters served as the State Department's deputy assistant secretary for China and Taiwan until late June and is now managing director at the Eurasia Group. Waters said, "Actually, in some ways the risk that I worry about next year are not even about the [US] election. It's … this dramatic increase in unsafe military intercepts of US and allied aircraft along [China's] periphery. These are happening now at a rate of two to three a week." This meeting comes after recent high-level diplomacy, including talks between US Secretary of State Antony Blinken and National Security Adviser Jake Sullivan and Chinese Foreign Minister Wang Yi in Washington. Watch: Anthony Albanese to hold talks with Xi Jinping × China sought to shore up its vast territorial claims over virtually the entire South China Sea by building island bases on coral atolls nearly a decade ago. The United States responded by sending its warships through the region in what it calls freedom of operation missions. The US has no claims itself but has deployed Navy ships and aircraft for decades to patrol and promote free navigation in international waterway and airspace. China routinely objects to any action by the US Military in the region. The other parties the Philippines, Vietnam, Malaysia, Taiwan and Brunei claim all or part of the sea, through which approximately $5 trillion in goods are shipped every year. (With inputs from agencies)

South China Sea: US official holds ‘constructive’ talks with Beijing’s top borders official

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