China

US says ban on AI chip shipments applies to Chinese firms outside China | Technology News

Department of Commerce issues guidance on chip restrictions amid concerns about loopholes in export control regime.

The United States has issued a notice affirming its restrictions on shipments of semiconductors to subsidiaries of Chinese companies located outside China amid concerns about loopholes in Washington’s export control regime.

The Department of Commerce said in the guidance issued on Sunday that its licensing requirements for the export of advanced AI chips applied to all businesses with headquarters or a parent company in China.

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The Bureau of Industry and Security (BIS), which falls under the Commerce Department, said it issued the clarification in response to questions about whether it was enforcing preexisting licence requirements after it had overturned former President Joe Biden’s AI Diffusion Framework.

“The answer is yes,” the BIS said in the notice.

Unveiled in the final days of the Biden administration, the AI Diffusion proposed the implementation of a globe-spanning framework to control access to AI chips, including export caps for all but the closest US allies.

The framework drew backlash from tech firms, including Nvidia, the world’s most valuable chip company, which cast the proposal as a threat to innovation and cross-border collaboration.

President Donald Trump’s administration scrapped the framework last May, ahead of its implementation, citing the “burdensome new regulatory requirements” and the harm it would do to Washington’s diplomatic relations with other countries.

Chip giant Nvidia, whose top-of-the-line Blackwell GPUs are banned for export to China, said it had already been operating in keeping with the clarified rules.

“The guidance reaffirms that NVIDIA’s sales and vetting process is correct – consistent with our existing approach, licences are required to ship controlled products to PRC headquartered companies,” a Nvidia spokesperson told Al Jazeera, using the acronym for the People’s Republic of China.

AMD and Intel, Nvidia’s main competitors in the GPU space, did not immediately respond to requests for comment.

TSMC, which manufactures the most advanced chips on behalf of clients such as Nvidia, did not immediately return an email seeking comment.

The BIS also did not respond to inquiries.

Chris McGuire, a former State Department official who worked on technology policy in the Biden administration, accused the Trump administration of providing Chinese companies a loophole to buy export-controlled chips.

“Chinese companies have been buying these chips, very likely at scale. And because BIS has not updated export control regulations to clearly state what it IS enforcing, all of this was legal,” McGuire said in a post on X.

“This clarification does make clear that Blackwell shipments to China-headquartered companies outside of China are now illegal again – which is good, although obviously we have to see how many shipments have already gone to assess how much damage was done,” McGuire said.

“BIS’ statement acknowledges these shipments have been happening when it says companies who bought chips under this loophole don’t have to stop using them.”

The US has rolled out numerous restrictions on the supply of high-end technology to China, as Washington and Beijing battle for dominance in AI.

In December, Trump announced that he would allow Nvidia to sell its H200 chip to China, in a major loosening of Washington’s export controls.

While not Nvidia’s most advanced chip, the H200 is about six times as powerful as the H20, the most advanced chip previously allowed for export to China.

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Japan rejects ‘new militarism’, says China is rapidly arming | News

Defence Minister Shinjiro Koizumi accuses China of lacking military transparency and stresses the importance of dialogue for regional stability.

Japanese Defence Minister Shinjiro Koizumi has dismissed claims that Tokyo is pursuing “new militarism” and accused China of rapidly expanding its military with limited transparency.

China continues to increase its defence spending at a high level, Koizumi said on Sunday at the Shangri-La Dialogue in Singapore.

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“China’s external approach and military activities are matters of serious concern for ⁠Japan and the international community at the same time,” he added.

“Think about it. There’s a country that has a huge arsenal of nuclear weapons and strategic bombers. Japan has neither of such weapons, and yet Japan is labelled ‘new militarism’?”

Koizumi said Japan’s record since World War II “speaks for itself”, citing its adherence ‌to international law and commitment to the United Nations Charter alongside efforts to uphold a “free and open international order”.

In May, China’s Ministry of Foreign Affairs called on Asia Pacific countries to be vigilant and “jointly resist the reckless actions of Japan’s neo-militarism”.

At the Singapore forum, Chinese delegate Major General Meng Xiangqing criticised Japan.

“I deeply doubt whether a country that has not thoroughly eradicated the toxic legacy of militarism is qualified to talk extensively about defence cooperation on international occasions and whether it can win the trust of the international community, especially ⁠the Asian countries it once invaded,” he said.

US Secretary of Defense Pete Hegseth (L) speaks with Japan's Defense Minister Shinjiro Koizumi during the 23rd Shangri-La Dialogue summit in Singapore on May 29, 2026. (Photo by JAM STA ROSA / AFP)
US Secretary of Defense Pete Hegseth, left, speaks with Koizumi during the 23rd Shangri-La Dialogue on May 29, 2026 [Jam Sta Rosa/AFP]

Ties between Japan and China sank to ⁠their worst level in years after Japanese Prime Minister Sanae Takaichi warned in November that a hypothetical Chinese attack on Taiwan could draw a Japanese military response.

China claims Taiwan as its own territory over the objections of the island’s government.

Koizumi said transparency comes from “discussion and dialogue” and lamented that China had not sent its defence minister to the conference, but he insisted Japan remains open to engagement.

“We keep the door open,” he said, reaffirming Japan’s ⁠commitment to dialogue with China and other regional players to foster stability.

As China has been rapidly expanding and modernising its military, Japan has been reshaping its own defence policy. Last month, Takaichi’s cabinet scrapped a ban on lethal weapons exports, a major change in its post-war pacifist policy.

Japan pushes for unity

Separately on Sunday, Koizumi praised US Secretary of Defense Pete Hegseth for his commitment to the Asia Pacific but at the same time stressed the continued need for strong coalitions globally.

“Division weakens deterrence. Unity strengthens deterrence,” he told the conference in Singapore.

“If gaps emerge among the United States, Europe and allies and like-minded countries, forces which take it as an opportunity will surely come in,” he said.

“We must prevent such a situation. We must keep our cooperation going on. Now is the time to make our cooperation even stronger.”

US President Donald Trump has been harsh about fellow members in NATO, and the comments at the Shangri-La conference came the day after Hegseth again chided Western European allies at the forum for not devoting enough resources to defence.

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Hegseth Warns of China Threat, Urges Allies to Ramp Up Defense Spending

U. S. Defence Secretary Pete Hegseth called on Asian allies to increase military spending to counter China’s rising influence during his speech at the Shangri-La Dialogue in Singapore. He expressed concern over China’s military buildup and its potential to disrupt the regional balance of power. Hegseth emphasized the need for a robust network of allies that can deter aggression and maintain stability. The U. S. expects allies to raise defense spending to 3.5% of GDP, while the U. S. itself is investing $1.5 trillion in its military.

Hegseth addressed the need for action over discussions, suggesting that the region requires more military resources, such as ships and submarines, rather than just conferences. He underlined that partners want stability and that the U. S. must exhibit strength and disciplined leadership. He also noted improvements in U. S.-China relations, citing increased military communication to help manage tensions, while acknowledging that the relationship remains complicated.

Zhou Bo, a Chinese delegate, recognized a better tone in Hegseth’s remarks compared to the previous year, attributing this change to previous diplomatic engagements. He stated that both nations have communication channels open and that the situation might not be as severe as perceived. Hegseth reiterated President Trump’s call for allies to take more responsibility for their defense costs, proclaiming an end to U. S. defense subsidies for wealthy nations, emphasizing the need for allies to contribute actively.

Hegseth praised contributions from various allies and highlighted Japan’s efforts to enhance its defenses alongside the U. S. Regarding the Middle East, he stated the U. S. is prepared to resume strikes on Iran if diplomatic efforts fail and emphasized the ability to focus on both Asian and Middle Eastern interests simultaneously.

On the topic of arms sales to Taiwan, Hegseth avoided directly addressing concerns but affirmed that decisions about such sales are ultimately up to President Trump. The U. S. is reportedly considering a substantial arms package for Taiwan, which China views as its territory. Hegseth assured that there has been no change in U. S. policy towards Taiwan despite the ongoing dynamics in U. S.-China relations.

With information from Reuters

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China’s Limited Role at Shangri La Dialogue Seen as Missed Opportunity

China’s decision to send a largely academic delegation instead of senior defence leadership to the Shangri La Dialogue in Singapore has been described by Australia as a missed opportunity for strategic engagement at a time of rising regional tensions.

Australian Defence Minister Richard Marles said the Asia Pacific region needs greater strategic reassurance from Beijing, particularly given China’s ongoing military expansion and its growing influence across the Indo Pacific.

The Shangri La Dialogue is the region’s most prominent defence and security forum, bringing together senior ministers, military leaders, and policymakers from across the world to discuss security challenges and regional stability.

For the second consecutive year, China’s Defence Minister Dong Jun did not attend the meeting, with Beijing instead sending a delegation made up mainly of academics and military experts.

Why It Matters

The absence of senior Chinese defence officials comes at a sensitive moment for regional security dynamics.

Australia and its allies have repeatedly raised concerns about China’s rapid military buildup, which is widely regarded as the largest conventional expansion since the Second World War. Regional governments argue that this military growth has not been matched by sufficient transparency or reassurance about China’s long term intentions.

The lack of direct high level engagement at forums such as the Shangri La Dialogue limits opportunities to reduce misunderstandings, build trust, and manage rising tensions through dialogue.

For countries in the Indo Pacific, especially smaller states, the absence of senior Chinese representation can increase uncertainty about regional security and long term strategic balance.

Key Stakeholders

China

China’s approach reflects a more controlled engagement strategy in defence diplomacy, relying on lower profile participation while continuing to expand military capabilities and regional influence.

Australia

Australia views sustained dialogue as essential for regional stability, while simultaneously strengthening its alliance with the United States and deepening defence cooperation across the Indo Pacific.

United States

The United States remains a central security partner in the region and continues to position itself as a counterbalance to China’s military rise through alliances and defence agreements.

Regional Partners

Countries such as Japan, the Philippines, Malaysia, and others attending the forum are closely watching China’s engagement level as they navigate their own security concerns in a shifting regional order.

Future Outlook

If China continues limiting senior level participation in regional defence forums, diplomatic channels for managing tensions in the Indo Pacific may become more constrained. This could increase reliance on bilateral alliances and military deterrence rather than multilateral dialogue.

At the same time, ongoing military expansion by China will likely keep regional security concerns elevated, particularly among Southeast Asian and Pacific nations.

However, if future editions of the Shangri La Dialogue see higher level Chinese participation, it could open pathways for improved communication and reduced strategic mistrust.

For now, the gap between China’s military rise and its diplomatic engagement remains a key concern for regional powers seeking stability in an increasingly competitive Indo Pacific environment.

With information from Reuters.

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Is Europe finally waking up to China?

Tensions between China and the EU have intensified in recent months, prompting the European Commission to convene most of its commissioners for a strategic rethink during an “orientation debate” on Friday.


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“China is a critical partner, and engagement and dialogue will continue,” the commission said in a readout following the debate. “At the same time the current state of the trade and investment relationship is not sustainable.”

Calling the relationship “not sustainable” may understate the depth of the rupture.

Relations have steadily deteriorated since European Commission President Ursula von der Leyen branded Beijing a “systemic rival” in a landmark 2023 speech. But tensions surged to a new level once EU policymakers finally settled their differences over the EU-US trade deal that had consumed Brussels for months, freeing the bloc to sharpen its focus on China.

Last year, according to the commission, the bloc registered a record-high €359.9 billion trade deficit with Beijing, fuelling growing calls in Brussels to better protect the EU market from cheap Chinese imports that threaten entire sectors — metals, chemicals and the car industry among them.

“We are seeing a panic attack in the last few weeks on China,” an EU official told Euronews, speaking on condition of anonymity to speak candidly. The official added that the China issue had been “overlooked for too long.”

A total of 200,000 European jobs were lost in EU industry — particularly in the energy-intensive and automotive sectors — since 2024, with a further 600,000 job losses projected this decade in carmaking alone.

On Friday, the commission readout specified that its “overarching approach remains de-risking, not decoupling,” signalling that the bloc is still pursuing targeted efforts to reduce its dependence on China rather than sever economic ties altogether. Yet the risk of a full-scale trade war has never felt so real.

Here are five key points on how the situation has escalated to this point — and where it may be headed next :

1. Fines and regulatory pressure

During the previous legislative term, the EU passed legislation that drew Beijing’s anger — notably measures to screen foreign direct investment. And it has stepped up its fight against so-called dumping, whereby public subsidies are used to undercut competitors through exports sold below market prices in China.

The European Commission has grown increasingly assertive in countering China’s subsidy-driven approach, including by imposing duties on imports of battery electric vehicles. Several product-specific investigations are also ongoing.

Earlier this week, the Commission fined Chinese e-commerce giant Temu €200 million for selling unsafe products and opened a full-scale investigation into JD.com’s acquisition of e-commerce retailer MediaMarkt.

EU lawmakers and governments are also discussing the Industrial Accelerator Act, a legislative proposal that would impose strict conditions on investments in batteries, electric vehicles, solar panels and critical raw materials from countries controlling 40% of the global market share in a given sector.

A separate proposal — a revamped Cybersecurity Act — could push out Chinese equipment suppliers such as Huawei and ZTE from critical infrastructure.

2. A more systemic approach

To counter Chinese overcapacities, the EU agreed in April to double tariffs on steel imports that exceed EU quotas. The measure is a so-called “safeguard” — a tool backed by some of the EU’s largest economies, including France, Italy, Spain, the Netherlands and Lithuania, which called for it to be extended to sectors beyond metals.

In a non-paper, those countries argued that safeguards were more “agile” than other EU instruments targeting cheap export products. The paper also calls for economic security to be factored into assessments of the EU’s interests when deciding on trade defence measures.

The European industry is also ramping up pressure to crack down on Chinese cheap imports calling on the Commission to use trade defence measures “more flexibly, faster, and preventively.”

A major wake-up call for EU policymakers has been the recent case of Nexperia, a Dutch-based chipmaker acquired by Chinese giant Wingtech, which was caught in the crossfire of US-China trade tensions, causing significant disruption in the automotive sector.

The Commission is now set to require sectors such as the car industry to diversify chip suppliers in certain cases, taking supply-chain risks into account in procurement decisions.

Despite these various initiatives, EU policymakers have grown wary that the current rules are too slow-moving for a fast-moving adversary. After duties were imposed on electric vehicle batteries, China’s focus simply shifted to hybrid vehicles.

Brussels is now moving towards a more systemic approach, treating trade defence as a toolbox to rebalance relations with China. One potential addition is a so-called overcapacity instrument to cap imports in specific sectors.

3. China’s threats of retaliation

In recent weeks, China has repeatedly threatened retaliation if the EU presses ahead with closing its market to Chinese goods.

Both the “Made in Europe” legislation and the Cybersecurity Act have drawn Beijing’s ire, prompting intensified lobbying of Brussels and EU member states, with warnings that implementation will trigger a response.

The Europeans are walking a tightrope, acutely aware that their decisions could spark a trade war. After the EU imposed tariffs on Chinese electric vehicles in 2024, Beijing imposed tariffs on EU pork, brandy and dairy products.

“International trade is a two-way street. There’s no forced trade. The China-EU trade relations are win-win in nature. China does not aim for trade surplus,” Chinese Foreign Ministry spokesperson Mao Ning said at a press briefing on Thursday.

“The EU needs to put trade ties with China in perspective and honour its commitment to free trade. China will closely follow the EU’s moves and take all measures necessary to safeguard legitimate rights and interests,” Ning added.

Some argue it is already too late for the Europeans, who depend on China for key components of their supply chains — components Beijing can weaponize at will.

In 2025, China blocked exports of rare earths, which are vital for EU green technology and defence, as well as chips essential to the European car industry. Beijing can also leverage operating licences for EU companies and restrict access to its market at any time.

4. European divisions

Europe is far from united on China.

Germany, despite a troubling trade deficit with Beijing, has been slow to shift away from its cooperative approach, which prioritises securing market access for German companies in China.

Berlin did not endorse last weekend’s non-paper backed by other major EU economies. Instead, German Economy Minister Katherina Reiche repeated this week that Germany’s overriding priority is to avoid jeopardising exports to China.

Yet the economic cost of dependence on Beijing might be forcing Berlin to reconsider its stance. The German government is reportedly weighing a tougher line that would mark a significant shift in its China policy.

For years, the German industry had a relationship with the Chinese market that critics described as toxic — one that blocked any meaningful attempt to rebalance the trade deficit out of fear of losing commercial access to the vast Asian market.

Spain has emerged as the other major EU country reluctant to act against China. With relatively cheap energy costs, Spain has become attractive to foreign investors, of which Beijing accounts for a growing share.

Its position caused embarrassment for Madrid this week, after it initially appeared to support the France-led non-paper before retreating and claiming it had merely participated in discussions.

“There has been no specific political support for any ‘non-paper’,” Spanish trade minister Carlos Cuerpo said, adding that the EU should “engage” with Chinese authorities through “dialogue.”

5. What happens now?

Brussels’ reassessment of its China stance has been long in the making, rooted in decades of deepening economic dependence. But the latest acceleration was also prompted by a shift in US posture, most visibly the recent visit to Beijing by President Donald Trump.

The Commission’s orientation debate on Friday was just a first step in what could become a broader repositioning. Where that leads — given internal divisions and the threat of retaliation — remains deeply uncertain.

The conclusions of that exercise are expected to feed into a discussion on economic security at the next European Council meeting on 18-19 June. China has appeared on EU leaders’ agenda several times in recent years, only to be pushed aside by more pressing crises.

While Brussels considers adding new instruments to its policy toolbox, political will remains the key determining factor. Nowhere is that gap more stark than in the EU’s handling of the anti-coercion instrument, also known as the “trade bazooka,” which was designed to push back against economic pressure and unfair trade restrictions.

“The anti-coercive instrument was never used, even though we have been coerced quite a lot,” the EU official said. “We need tools that we are actually willing to use.”

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Germany resists EU members’ push for a tougher stance on China

German Trade Minister Katherina Reiche is travelling to China from Tuesday to Friday as Berlin’s trade deficit with Beijing continues to deepen.


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The trip comes two days after several of the EU’s largest economies – France, Spain, Italy, the Netherlands, as well as Lithuania – issued a non-paper urging the EU to crack down on Chinese overcapacity and unfair trade practices.

Berlin, however, did not endorse their call.

Germany remains the main chokepoint in the EU’s strategy towards China. While Euronews previously reported that the publication late last year of Germany’s trade deficit with Beijing marked a turning point for the EU executive, which is trying to sharpen its trade defence tools, Germany continues to favour cooperation with the Chinese.

In March, German Chancellor Friedrich Merz called for a trade agreement with Beijing. Brussels pushed back against the idea.

“There are a number of concerns and real challenges that the European Union has consistently expressed to China that we need to see them meaningfully address before we can even talk about any future agreements or anything like that,” the Commission’s deputy chief spokesperson, Olof Gill, said at the time.

Even with a record €87 billion trade deficit with China, Berlin hopes Beijing will keep its market open to German industry, despite the obstacles faced by EU businesses in China and the Asian giant’s strategy of reducing its dependence on foreign products.

Access to China’s market

The main objective of Reiche’s visit this week is to discuss potential economic cooperation. According to the German government, the strategy is to explore future opportunities for collaboration while maintaining dialogue with the Chinese leadership.

Despite a steadily growing trade deficit, China remained Germany’s most important trading partner in 2025. According to the Federal Statistical Office, bilateral trade volume reached €250 billion. Around 5,200 German companies operate in China, making the country one of the most important foreign markets for Germany’s automotive, mechanical engineering and electrical industries.

During the trip, Reiche is expected to hold political talks, attend a business forum and visit local companies. She will be accompanied by a business delegation representing around 40 companies. Discussions are also set to focus on the development of energy technologies.

“We hope the visit will help to transfer the insights gained on the ground into the political discussion in Berlin and to further develop bilateral exchange,” said Oliver Oehms, Executive Director of the German Chamber of Commerce in China.

In a survey published in May by the chamber, 51% of German companies operating in China supported policies favouring partnerships with Chinese companies, while 42% backed the “strategic” use of knowledge gained through such partnerships.

But these sectors are also increasingly under pressure, as Chinese competitors benefit from extensive state subsidies.

According to a report published in May by the EU think tank Centre for European Reform, the growing concentration of global car, machinery and chemicals production in China could weaken innovation in traditional manufacturing hubs and increase Beijing’s leverage over Berlin through the threat of supply disruptions, similar to its blockade of rare earth exports in 2025.

The report added that demand generated by Germany’s fiscal stimulus after easing its debt brake could end up boosting Chinese imports rather than supporting Berlin’s domestic industry.

German exports to China fell by 9.7% year-on-year, while imports of Chinese goods such as electronics, electric vehicles and components rose significantly by 8.8%.

“China has already eaten much of German industry’s lunch and is preparing to start on dinner,” the report said.

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Critical Minerals Rush Risks Creating Global Oversupply, Industry Warns

Western governments are pouring tens of billions of dollars into critical minerals projects as they attempt to reduce dependence on China for materials essential to clean energy, defence technology and advanced manufacturing.

But industry executives, analysts and investors are increasingly warning that poorly coordinated state-backed investment could create severe oversupply problems similar to past commodity booms that ended in market crashes.

The concerns come as countries including the United States, Australia, European Union and Japan accelerate efforts to build strategic reserves and expand production of rare earths and other critical minerals.

Governments Ramp Up Critical Minerals Spending

The United States has committed more than $20 billion toward critical minerals development through multiple financing programmes, including Project Vault, a strategic stockpiling initiative worth around $10 billion.

Australia has also allocated at least A$13 billion to support critical minerals projects and reserves through several government-backed programmes.

These investments are designed to secure supplies of metals used in electric vehicles, semiconductors, renewable energy systems, aerospace equipment and military technologies.

Particular attention has focused on rare earth elements, a group of 17 metals essential for producing powerful magnets used in advanced defence systems and high-tech manufacturing.

Although the global rare earths market was valued at only about $6.4 billion in 2024, combined Western financial commitments to rare earth projects have already exceeded that figure.

Fears Grow Over Potential Oversupply

Mining executives and analysts warn that aggressive subsidies and overlapping national strategies could eventually flood global markets with excess supply.

Brett Beatty of Resource Capital Funds said the biggest danger lies in governments pursuing independent strategies without coordination.

According to Beatty, simultaneous efforts to rapidly increase production could create volumes far beyond global demand, ultimately crushing prices and undermining the very industries governments are trying to build.

Analysts drew comparisons to historical commodity gluts, including Europe’s “butter mountains” of the 1980s, Russian aluminium oversupply and Australia’s wool crisis, where subsidies and state support distorted markets and triggered sharp price collapses.

Rare Earth Market Could Face Surplus Pressures

Consultancy Project Blue warned that several rare earth markets are already on track to move into surplus over the coming years due to expanding state-backed production.

However, analyst David Merriman said governments may still be able to avoid major imbalances if they carefully adjust subsidies, stockpiling programmes and guaranteed purchasing arrangements.

Industry leaders say current stockpiles remain relatively small, limiting immediate risks of market disruption.

Lynas Rare Earths CEO Amanda Lacaze recently said rare earth stockpiles around the world remain modest and are not yet large enough to destabilise markets.

Australian Resources Minister Madeleine King also argued that today’s critical minerals policies differ significantly from past commodity intervention failures because they are more targeted and linked to long-term industrial supply chains.

Global Coordination Emerging Among Western Allies

Concerns about duplication and oversupply are pushing Western governments toward greater policy coordination.

The Group of Seven is reportedly discussing the creation of a permanent secretariat focused on coordinating critical mineral strategies and ensuring continuity between rotating national presidencies.

Industry experts say such coordination could help prevent destructive competition between allied nations while supporting more stable investment planning.

Lessons From Congo and Indonesia

Governments outside the West have already experimented with aggressive intervention in mineral markets.

The Democratic Republic of the Congo boosted cobalt prices by introducing export quotas and stockpiling measures designed to increase mining revenues.

While the policy initially lifted prices, analysts warn prolonged restrictions could encourage manufacturers to seek alternative materials or suppliers.

Similarly, Indonesia dramatically expanded its dominance in nickel production after banning exports of raw nickel ore in 2020 to force domestic processing investment.

Indonesia’s production surged within just a few years, but authorities have since struggled with falling prices and oversupply, forcing Jakarta to tighten mining quotas and centralise export controls.

These examples highlight the difficulty governments face in balancing national industrial ambitions with long-term market stability.

Analysis

The global race for critical minerals is increasingly becoming a strategic contest shaped as much by geopolitics as by economics.

Western governments view supply chain independence as essential after years of relying heavily on China for processing capacity and rare earth production. The push is not simply about commercial competition — it is tied directly to national security, technological leadership and energy transition goals.

However, the very scale of state intervention now unfolding raises the risk of creating distorted markets. If multiple governments simultaneously subsidise production, guarantee prices and build stockpiles without coordination, supply could rapidly outpace actual industrial demand.

That scenario would likely trigger sharp price declines, weaken private investment and potentially create another boom-and-bust cycle in the mining sector.

At the same time, the market dynamics of critical minerals differ from traditional commodities. Many of these materials are essential for emerging technologies, and demand is expected to rise significantly over the next two decades as countries expand renewable energy infrastructure, battery production and semiconductor manufacturing.

This means governments are not only competing to secure supply today but also positioning themselves for future industrial dominance.

Another key challenge is that refining and processing capabilities remain heavily concentrated in China. Even if Western countries succeed in expanding mining output, they may still depend on Chinese infrastructure unless domestic processing networks are developed alongside extraction projects.

The growing emphasis on “friend-shoring” and allied supply chains reflects an attempt to address this vulnerability.

Industry experts also point to a more sustainable model emerging through byproduct extraction. Instead of building entirely new mines based purely on high prices, companies are increasingly looking to recover critical minerals from existing industrial operations, reducing the risk of uncontrolled supply growth.

Projects involving Alcoa, Sojitz and Trafigura illustrate how governments and corporations are experimenting with lower-risk approaches to expanding supply.

Ultimately, the success of Western critical minerals strategies may depend less on how much money governments spend and more on whether they can coordinate policies, manage supply carefully and build integrated processing ecosystems capable of competing with China over the long term.

With information from Reuters.

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Cuba thanks China for rice shipment amid worsening humanitarian conditions | Government News

Cuba has announced the first shipment in an expected donation from China of about 60,000 tonnes of rice, as the Caribbean island contends with an ongoing humanitarian crisis.

In a series of social media posts on Sunday, Cuban President Miguel Diaz-Canel confirmed that the first load of 15,000 tonnes had arrived a day earlier in the port of Havana.

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He also expressed “deep gratitude” to China, as well as to members of the European Parliament who denounced the pressure campaign his government faces.

Since January, the United States has increased its sanctions against Cuba, as part of a hardline turn under the second term of President Donald Trump.

“Thank you very much for the solidarity, and for the firm and unequivocal condemnation of the collective punishment to which our people are being subjected,” Diaz-Canel wrote, likening Cuba’s situation to “genocide”.

While Trump has sought to check China’s growing influence on Latin America, Cuba has increasingly relied on the Asian superpower for assistance.

Already, China has donated solar panels to Cuba to help update its ageing energy grid and transition the island away from fossil fuels. Currently, Cuba relies on imports for nearly 60 percent of its oil supply, according to the International Energy Agency.

But since the start of the year, the Trump administration has largely blocked the export of oil to Cuba.

The de facto oil blockade began shortly after January 3, when the US launched a military operation to abduct and imprison Venezuelan President Nicolas Maduro.

Trump followed that operation with the announcement that no more oil or funds would be transferred from Venezuela to Cuba.

By the end of the month, he had also issued an executive order identifying Cuba as an “unusual and extraordinary threat” to the US and threatening economic penalties to any country that supplies it with oil.

Since then, only a single Russian tanker has been permitted to reach the island. Earlier this month, Energy Minister Vicente de la O Levy announced that the island had exhausted its oil supplies.

While Cuba is no stranger to power outages, the recent crisis has caused island-wide blackouts and has brought public services — including transportation and medical care — to a standstill in many areas.

But Trump has continued to impose sanctions on the island’s communist government, in an apparent effort to force regime change.

Media reports have indicated he has sought Diaz-Canel’s resignation and would be open to a situation akin to Venezuela’s, where Maduro’s government has been left largely intact, though Maduro himself has been replaced.

Trump has also repeatedly suggested he may consider a military response should Cuba fail to give in to his demands, though his administration has sent mixed messages about possible intervention on the island.

“Other presidents have looked at this for 50, 60 years, doing something, and it looks like I’ll be the one that does it,” Trump said last week from the Oval Office.

Negotiations between the two countries, however, are likely to be strained after the Trump administration unveiled a murder indictment against Cuba’s former president, Raul Castro, for the 1996 downing of two planes run by Cuban exiles.

Since the 1960s, Cuba has been under a sweeping US trade embargo that has weakened its economy.

US officials, however, have blamed the Cuban government for economic mismanagement and the oppression of its people, particularly political dissidents.

Earlier this month, US Secretary of State Marco Rubio disclosed that the Trump administration offered $100m in humanitarian aid to Cuba, on the condition it implement “meaningful reforms”.

In Sunday’s posts, however, Diaz-Canel sought to project defiance in the face of Trump’s “maximum pressure” campaign.

“The ‘maximum pressure’ strategy — which some in the US morbidly trumpet — is part of a strategy intended to justify the false narrative of an impending collapse, and thereby pave the way for military intervention,” he wrote.

Diaz-Canel added that Cuba would continue to strengthen its ties with the US’s economic and political rival, China.

“The cherished bonds of friendship and cooperation that unite us grow stronger in these crucial times,” he said.

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Why Keeping Silence on Taiwan Is No Longer Safe

Strategic ambiguity, the US policy of neither explicitly supporting nor opposing Taiwanese independence, has been considered effective for decades in maintaining stability in the Taiwan Strait. However, the summit between Trump and Xi Jinping on May 14-15, 2026, in Beijing revealed signs that this formula’s effectiveness is beginning to be limited. China pushed the US not merely to “not support” but to actively “oppose” Taiwanese independence. The US responded by displaying an inconsistent position. Taiwan openly asserted its sovereignty. All three responses emerged within less than 24 hours, and no international forum was able to manage the contradictions.

AT His strategic ambiguity is not simply a matter of US foreign policy. It reflects deeper limitations in the global governance system in addressing unresolved sovereignty issues. At the same time, China is actively promoting an alternative world order through its Belt and Road Initiative, non-interventionist principles, and multipolarity agenda, which indirectly influence how the Taiwan issue is positioned on the international stage. Without a concrete framework for joint governance, the potential for miscalculations across the Taiwan Strait will continue to increase.

On May 16, 2026, the day after Trump left Beijing, Taiwan’s Ministry of Foreign Affairs issued an official statement. Taiwan is a sovereign and independent nation. It is not under Chinese rule. This statement was not new rhetoric.

What makes this significant is the context. Trump had just called a $14 billion arms sale to Taiwan a bargaining chip in negotiations with Xi Jinping. China had just successfully pushed the US to soften its tone on Taiwan. In less than 24 hours, three main actors make statements that cannot all be true at the same time. And there is no one international institution that has the authority to decide which is more valid.

This isn’t a sudden diplomatic failure. It’s the result of a policy of strategic ambiguity that has been in place for more than five decades and is now beginning to show its limitations.

Strategic ambiguity was once effective because all parties had an incentive not to test its limits. That situation is changing. China is becoming increasingly assertive. militarily and increasingly actively shaping an alternative global order. Taiwan is becoming more assertive in claiming its political identity. The US under Trump is increasingly unpredictable. In these conditions, the ambiguity that once served as a buffer for stability has now become a source of uncertainty. The global governance system lacks adequate instruments to fill the gaps left by this increasingly outdated formula.

Starting from the background, a US strategic ambiguity towards Taiwan was born of deliberate compromise. In the Shanghai Communique (1972), Washington used the word “recognizes” China’s position that Taiwan is part of China, not “accepts.” The difference in vocabulary was no accident. It opened diplomatic normalization with Beijing without formally abandoning Taipei.

This formula was then codified through the Taiwan Relations Act of 1979 and three joint US-China communiques. During the Cold War era and the two decades that followed, this formula remained relatively stable because China was not yet strong enough to challenge it militarily and Taiwan was not yet confident enough to challenge it politically. As noted by T.Y. Wang in the journal Politics and Policy, strategic ambiguity is designed not only to deter China from attacking Taiwan but also to restrain Taiwan from taking steps that Beijing might deem provocative.

But the conditions that made that formula effective have changed structurally. Taiwan’s democratization since the 1990s has produced a political identity increasingly independent of the “One China” narrative. The PLA’s military modernization has changed the cost calculations of conflict. And Trump’s return to the White House has brought a transactional approach that, as noted by the Global Taiwan Institute, exacerbates existing ambiguities with conflicting signals that are record arms sales accompanied by a striking rhetorical silence on US security commitments to Taiwan.

On the ground, this uncertainty has already resulted in a measured escalation. Military exercises: Justice Mission 2025 In December 2025, a full-scale blockade of Taiwan was simulated, with over 90 aircraft crossing the median line of the Taiwan Strait in a single day. These median line violations were not an anomaly. Since 2022, they have become increasingly routine and have rarely elicited an organized response from the international community.

The most important part to understand next is about the One China Policy. The One China Policy affirms that a single label includes three irreconcilable positions. Beijing maintains that Taiwan is an unreturned province and that reunification is a non-negotiable goal. Taipei maintains that the Republic of China (ROC) is a sovereign state that predates the People’s Republic of China and that the two have never ruled each other. Washington maintains its own version, based on the Taiwan Relations Act, that recognizes Beijing’s position without explicitly endorsing it.

These three positions exist simultaneously because they have never been tested in an international forum that has the authority to decide which is more valid. Brookings Institution; he noted that this policy was originally designed for a period when China was not yet acting like a revisionist power. Now, conditions have changed, and the old formula requires a recalibration that has yet to materialize.

There’s a compelling argument here. Strategic ambiguity has also served as a deterrent to war. It prevents China from attacking because it’s unsure whether the US will intervene. It also prevents Taiwan from declaring formal independence because it’s unsure whether the US would defend it. In this logic, ambiguity is a feature, not a bug.

However, analyst Brandon K. Yoder in the European Journal of International Relations, The effectiveness of deterrence hinges on credibility, which is currently eroding. When Trump called weapons for Taiwan a “negotiating chip,” he indirectly communicated to Beijing that the US commitment was conditional. When commitments are conditional, their deterrent effect is significantly weakened.

What results is not new stability, but rather an increasingly unpredictable gray area. Each party operates based on its own assumptions about the limits that can be tested. Without governance mechanisms that explicitly clarify these limits, the risk of miscalculation continues to grow.

The Taiwan issue cannot be read in isolation from China’s broader agenda of reshaping the global order. Over the past two decades, Beijing has not only protested the existing international system but also actively developed an alternative.

The Belt and Road Initiative, which now encompasses more than 140 countries, is more than just an infrastructure project. As analyzed in China Quarterly of International Strategic Studies, BRI serves as both a governance and economic mechanism, linking infrastructure development with new standards of connectivity and cooperation that reflect the Chinese model of development without political conditions.

Beyond the BRI, China is actively pushing three major initiatives: the Global Development Initiative, the Global Security Initiative, and the Global Governance Initiative. They share a common thread that is strengthening the norm of sovereignty, rejecting intervention based on Western values, and promoting multipolarity as a substitute for single-party hegemony. Bruegel noted that the concept of “Community with a Shared Future for Mankind” popularized by Xi at Davos 2017 has even been included in several UN General Assembly resolutions, demonstrating how far China has succeeded in pushing its global narrative into multilateral institutions.

The relevance to the Taiwan issue is that the more countries accept China’s sovereignty-based, non-interference-based governance framework, the more limited the space for international mechanisms to challenge Beijing’s claims to Taiwan. China’s global governance agenda and its claims to Taiwan are not separate issues. They are part of the same project: redefining who has the right to set the rules of the game in what have traditionally been called “internal affairs.”

This also makes Trump’s and Xi’s bilateral approach a more suitable instrument for China’s interests. When the Taiwan issue is managed through negotiations between the two great powers, broader norms, such as the right to self-determination and representation of sovereign entities, are not discussed. Observer Research Foundation noted that BRI cooperation with the UN from 2015 to 2019 was more about mutual legitimacy than structural integration, and a similar pattern is seen in the way China uses multilateral forums to validate its diplomatic positions without actually committing to the process.

Trump’s and Xi’s meeting in May 2026 shows a pattern that deserves serious attention. That is, the Taiwan issue is now managed almost entirely outside the multilateral framework. There are no regional forums, no UN mechanisms, no activated joint protocols. There are just two leaders, two delegations, and an agenda far broader than just Taiwan.

Observation: Both sides reveal a glaring asymmetry. In China’s version, Taiwan is referred to as the “most important issue,” and Xi warned of potential conflict if handled incorrectly. In the US version, Taiwan is not mentioned at all. CSIS noted that the meeting resulted in a commitment to “strategic stability” without concrete instruments to realize it. The lack of crisis communication protocol. Limited incident management framework. There isn’t any commitment to refrain from provocative military exercises.

This is not simply a shortcoming of the meeting. It reflects a more systemic limitation. namely the limitations There is no sufficiently authoritative multilateral platform to address this issue. The UN Security Council is hampered by Beijing’s veto power. ASEAN adheres to the principle of non-intervention, which actually benefits China’s narrative. The G20 has no mandate to address sovereignty disputes.

The result is what could be called a governance deficit. This doesn’t mean there are no institutions, but rather that the existing ones are insufficiently effective for the situation. And it’s in this deficit that military escalation moves in to fill the space that structured diplomacy should be filling. Modern Diplomacy noted that the US approved an $11.1 billion arms package for Taiwan by 2025 while simultaneously sending ambiguous rhetorical signals, a combination that makes it difficult for both China and Taiwan to read exactly where the real line is.

The following three recommendations are not intended to resolve the Taiwan status question. Their purpose is more limited and more immediate. namely for reducing the risk of miscalculation before a minor incident escalates into an uncontrollable crisis. All three rely on existing political conditions and momentum.

First, the momentum of the Trump-Xi meeting should be used to establish a permanent, dedicated military crisis communication channel for incidents in the Taiwan Strait. The most relevant precedent is the Washington-Moscow hotline, established after the 1962 Cuban Missile Crisis, precisely because the world had nearly come to war due to miscommunication, not intention. CNBC noted the May 2026 meeting resulted in a relatively constructive atmosphere between the two leaders. This is a rare window of opportunity and should be used for something concrete.

Second, Indonesia, as a BRICS member and ASEAN dialogue partner with a relatively balanced working relationship with Washington and Beijing, could propose a regional consultation forum focused on managing incidents in the Taiwan Strait. This would not be a forum to decide Taiwan’s status, but rather a technical mechanism for de-escalation procedures and crisis communication. ASEAN has the foundation for this through the Treaty of Amity and Cooperation, and Indonesia’s current position within BRICS provides added legitimacy in Beijing’s eyes.

Third, the US, China, Japan, and South Korea need to negotiate a joint commitment that no party will change the status quo in the Taiwan Strait through force. This is inspired by the Helsinki Final Act of 1975, which successfully committed European countries not to change their borders by force, despite many of their mutual distrust. The agreement did not resolve existing disputes, but it did raise the costs of escalation measurably. With Xi seeking economic stability before 2027 and Trump seeking to avoid military engagement far from the US mainland, both sides’ calculations are now more open to this type of commitment than in previous periods.

It can be concluded that strategic ambiguity is one of the most ingenious products of Cold War diplomacy. It maintained stability in the Taiwan Strait for decades, not by solving the problem, but by making all parties unsure whether testing its limits was a good idea.

The conditions that make that formula work are changing simultaneously. China is stronger and more assertive. Taiwan is more assertive in its political identity. And the US under Trump is sending signals that are more easily read as conditional than committed. These three changes are not occurring one after the other, but simultaneously, and the global governance system has not yet responded accordingly.

The Trump-Xi meeting in May 2026 is neither a turning point in the war nor a step toward a resolution. It is a reflection of the current situation: three actors with three different interpretations, no referee, and increasingly little room for error.

What’s needed isn’t a final solution on Taiwan’s status, as that won’t come anytime soon. What’s needed are concrete steps that reduce the risk of miscalculation while keeping all options open. Crisis channels, regional consultative forums, and non-escalation commitments are small steps but have clear historical precedent. The question is whether the political will for these small steps can still be found amidst the escalating rivalry.

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Gas explosion at Chinese coal mine kills at least 90 | Mining News

President Xi Jinping has called on authorities nationwide to learn from the incident.

A gas explosion at a coal mine in China has killed at least 90 people.

State media Xinhua said 247 workers had been on duty underground when the blast ripped through the Liushenyu mine in Qinyuan county, Shanxi province, on Friday.

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China’s coal mines are considered among the deadliest in the world due to poor safety standards, weak regulation, and corruption as companies seek to profit from the country’s rapidly expanding economy.

Rescue operations were ongoing as emergency crews continued searching for survivors of the explosion, the deadliest mining disaster reported in China in more than a decade.

The blast occurred shortly after a carbon monoxide alert was issued, with some reports claiming gas levels had exceeded safe limits.

According to state-run broadcaster CGTN, the person responsible for overseeing the mine has been arrested while authorities investigate the cause of the explosion.

President Xi Jinping has urged authorities across China to intensify efforts to prevent major accidents in the wake of Friday’s blast.

“All regions and departments must learn from the lessons of the accident, remain vigilant regarding workplace safety, thoroughly investigate, rectify all types of risks and hidden dangers, and resolutely prevent and curb the occurrence of major and serious accidents,” Xi said.

Video footage posted online from the scene showed several ambulances gathered near the mine.

Shanxi province, where the incident occurred, is China’s main coal-mining region. More than one billion tonnes of coal were extracted there last year, almost a third of the country’s total output.

China is the world’s largest producer and consumer of coal, accounting for more than half of global consumption.

The country is also the world’s largest annual greenhouse gas emitter, while being the biggest producer of renewable energy.

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EU clinches new trade deal with Mexico to bolster its foothold in Latin America

European Commission President Ursula von der Leyen and European Council President António Costa signed on Friday a revamped trade deal with Mexico as part of the EU’s efforts to expand its influence in Latin America, shortly after the Mercosur pact entered into force.


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The deal was signed at an EU–Mexico summit in Mexico, with von der Leyen and Costa joined by the country’s President Claudia Sheinbaum, amid rising geopolitical tensions and shifting global alliances following the return of US president to the White House.

The economic partnership between the two medium-sized powers reflects efforts on both sides to reduce their dependence on the US — the EU’s and Mexico’s largest trading partner—and on China, for which Mexico has become a hub for electric vehicle production.

“The EU and Mexico are committed to a close strategic partnership,” von der Leyen said, adding: “Today’s modernised Agreements set out our shared vision of the future and will deliver many benefits for both sides.”

The EU–Mexico trade deal strengthens the EU’s diversification strategy by updating a 20-year-old agreement that had already eliminated tariff barriers on bilateral trade.

Under the new deal, the EU will access new markets for products, such as agri-food (pork, dairy, cereals, fruit and pasta), pharmaceuticals and machinery.

EU tightens trade ties in Latin America

Mexico is the EU’s second-largest trading partner in Latin America and the EU is Mexico’s second-largest export market. Trade between both sides reached €86.8 billion in goods in 2025, alongside €29.7 billion in services in 2024.

The figures remain far smaller than Mexico’s trade with its neighbour, the US, which exceeded $900 billion in goods and services in 2024. But the deal comes as Mexico faces mounting pressure from a more protectionist White House.

For its part, the EU has been grappling with repeated tariff threats from Trump despite a trade deal clinched in 2025.

“At a time of growing global uncertainty, the EU and Mexico are choosing openness, partnership and ambition,” EU trade Commissioner Maroš Šefčovič, who was also in Mexico City, said. He pointed out that more than 43,000 European companies export to Mexico, while over 11,000 EU companies operate in the country.

On agriculture, the pact will open up new markets for Mexican products such as coffee, fruit, chocolate and agave syrup.

A total of 568 European and 26 Mexican geographical indications will also be protected, alongside the opening of public procurement markets, according to the Commission.

With this new deal, the EU also wants to signal its strengthened presence in Latin America, where China has expanded its influence.

“97% of the GDP of Latin America and the Caribbean will be covered by sophisticated preferential agreements with the European Union,” a senior EU official said, adding: “There is no other region in the world that has such a dense and connected network of agreements.”

The EU has already built new trade ties with Argentina, Brazil, Paraguay and Uruguay through the Mercosur trade agreement, which provisionally entered into force on 1 May and liberalises trade flows between the EU and those countries.

However, its signing has faced strong opposition from EU farmers, who fear unfair competition from Latin American imports, and ratification was suspended after MEPs challenged the agreement before the EU Court of Justice.

Brussels argues the Mexico agreement should avoid the backlash faced by Mercosur because sensitive agricultural imports remain capped through tariff quotas.

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An all-female Senate delegation is heading to the Arctic to reassure U.S. allies

Seeking to reassure U.S. allies, a bipartisan group of senators is departing for a tour of Arctic nations. And this time they’re leaving the men behind.

From the eight senators to their staff and military liaison officers, the all-female group will pay diplomatic visits to government officials in four Arctic nations, witness the challenges for militaries in the region and visit a Norwegian archipelago so remote they will need escorts to avoid run-ins with polar bears.

“I want them to experience, first of all, the awesomeness of the Arctic,” said Republican Sen. Lisa Murkowski of Alaska, who is leading the trip alongside Democratic Sen. Jeanne Shaheen of New Hampshire, the top Democrat on the Senate Foreign Relations Committee.

The trip was born out of both senators’ work to stabilize relations with U.S. allies in North America and northern Europe at a time when President Trump has taken an aggressive, go-it-alone stance in the region. Just this week, the Pentagon announced that the U.S. would pause participation on a joint board with Canada for continental defense that dates back to World War II.

Murkowski and Shaheen said that is the wrong approach in an Arctic region that has increasing strategic value and unique challenges.

“We will reassure our allies that we recognize and appreciate the importance of our allies and partners in the Arctic as in so many other areas,” Shaheen told the Associated Press, adding that she expected the group to discuss “what more we can do as members of Congress to support those relationships.”

The group is split evenly between Democrats and Republicans, with Sens. Cindy Hyde Smith, Katie Britt and Cynthia Lummis making up the Republican side, and Sens. Maggie Hassan, Kirsten Gillibrand and Catherine Cortez Masto from the Democrats. Departing Friday, they will visit Arctic or sub-Arctic regions in Canada; Greenland, which is an autonomous territory of Denmark; Svalbard, a Norwegian archipelago that is one of the northernmost inhabited areas on Earth; and Iceland.

Understanding the Arctic

Murkowski and Shaheen said they want the group to come away with a deeper understanding and appreciation for Arctic communities that are experiencing the effects of climate change, as well as the unique challenges of conducting military operations in the region.

“It’s to understand what it means to go into a remote, isolated community that has no access by road,” Murkowski said, adding that the group would see how military sites need airplane hangars because aircraft cannot be kept outside overnight in the Arctic cold.

NATO has recently tried to foster cooperation in the High North through a series of joint military exercises, especially as nations like China and Russia increase their activities there.

As climate change thins the Arctic ice, it could potentially create a northwest passage for international trade as well as reignite competition with Russia, China and other countries over access to the region’s mineral resources. The region is also host to a number of undersea cable projects that hold strategic value.

The group will also visit Indigenous communities that have lived in the region for generations and understand the environment. Murkowski said she hopes the senators come away from the trip “excited and intrigued and hopefully inspired.”

As Trump threatened to take Greenland earlier this year, Shaheen and Murkowski also teamed up to push for legislation that would prevent the U.S. from attacking any fellow NATO member. They are among the lawmakers pushing to include language in this year’s defense legislation that would prevent the Trump administration from withdrawing military commitments to NATO allies.

Shaheen said, “I also want to know if there are policy directives that we should be thinking about. And it will be great to have a strong bipartisan group there to discuss what we might want to do when we get back.”

How an all-female trip will be different

For some of the nations the group will be visiting, a high representation of women is nothing new. Iceland’s parliamentary body is comprised of roughly 46% women, one of the top ranking countries globally for female political representation.

Shaheen said that research suggests that “when women are the negotiating table, that agreements that are made have a much better chance of lasting for a longer period of time.”

She added that data show that representation of women in government leads to more stable societies, as well as investments back into their communities.

“There are very real reasons why we need to make sure that women are at the table,” she added.

Groves writes for the Associated Press.

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US pausing $14bn arms sale to Taiwan due to Iran war, navy chief says | US-Israel war on Iran News

Acting Navy Secretary Hung Cao’s remarks come as US President Donald Trump gives mixed signals on the sale.

A top United States military official has said Washington is pausing a $14bn arms sale to Taiwan to conserve munitions for its war on Iran.

Acting Navy Secretary Hung Cao provided the update to lawmakers during a Senate hearing on Thursday, a week after the weapons sale took centre stage in talks between US President Donald Trump and Chinese leader Xi Jinping in Beijing.

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“Right now, we’re doing a pause in order to make sure we have the munitions we need for Epic Fury – which we have plenty,” Cao told the Senate Appropriations Subcommittee on Defense.

“But we’re just making sure we have everything, but then the foreign military sales will continue when the administration deems necessary.”

Cao said any decision to move forward with the sale – which would be the largest ever weapons transfer to Taiwan – would be made by Secretary of Defense Pete Hegseth and Secretary of State Marco Rubio.

The war has been paused since the US and Iran agreed to a ceasefire on April 8, but the sides have yet to reach a permanent peace deal.

The US Congress approved the weapons package for Taiwan in January, but the sale requires Trump’s sign-off to move forward.

If approved, the sale would surpass a record-breaking $11bn arms package for Taiwan approved by Trump in December.

Taiwanese Premier Cho Jung-tai told reporters on Friday that Taiwan would continue to pursue arms purchases, according to Taiwanese news outlet FTV News.

William Yang, senior analyst for northeast Asia at the Crisis Group, said in a social media post that the pause will “exacerbate anxiety and scepticism about US support in Taiwan and make it difficult for the Taiwanese government to request additional defence budget for the foreseeable future”.

Trump, who has confirmed that he discussed the arms sale with Xi, said last week in an interview with Fox News that he “may” or “may not” approve the package.

Trump has also suggested that the package could be used as a “negotiating chip” – despite a decades-old precedent against consulting with Beijing on arms sales.

China claims self-governing Taiwan as part of its territory, and objects to Washington’s ongoing but unofficial support for Taipei.

The US government does not officially recognise Taiwan but is committed to helping the island to defend itself under the 1979 Taiwan Relations Act, enacted shortly after Washington severed diplomatic ties with Taipei.

Trump has continued to test the status quo on Taiwan in other ways, saying earlier this week that he would consider speaking to Taiwanese President William Lai Ching-te about the arms deal.

Such a move would break with four decades of diplomatic protocol against direct talks with the Taiwanese leader and almost certainly provoke an angry response from Beijing.

Trump held a phone call with former Taiwanese President Tsai Ing-wen after his 2016 election win, but their talks took place before he was sworn in as president.

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Taiwan’s president says future will not be decided by ‘external forces’ | Politics News

President Lai says Taiwan’s future is up to its people as the island faces Chinese and US headwinds.

Taiwanese President William Lai Ching-te said the future of Taiwan should not be decided by “foreign forces” but is instead in the hands of its 23 million citizens.

Speaking on the second anniversary of his inauguration on Wednesday, Lai said his goal as president continued to be maintaining peace and stability across the Taiwan Strait – the 180km (112-mile) waterway dividing Taiwan from China – and to prevent “external forces” from altering the island’s political status quo.

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The president said he was still willing to engage with Beijing, which cut off communication with Taipei in 2016, but only through “orderly exchanges” based on the principles of “equality and dignity”.

Taiwan is a responsible member of the international community, not a “party that undermines stability”, he also said, in an apparent swipe at Beijing.

China’s Taiwan Affairs Office on Wednesday accused Lai of inciting “cross-strait confrontation” by supporting “Taiwan independence” in remarks coinciding with his anniversary.

The office’s spokesperson, Zhu Fenglian, said Lai “peddles separatist fallacies” while using a narrative of “democracy versus authoritarianism” to describe the Taiwan-China relationship.

Zhu also accused Lai of ignoring the wellbeing of the Taiwanese public to pander to “external forces attempting to ‘seek independence through foreign aid’ and ‘seek independence through force’.”

Lai has faced a tumultuous 24 months as president, with pressures from both inside and outside Taiwan, including from traditional ally the United States.

The opposition-controlled legislature cut down a signature special defence budget from $40bn to $25bn, and this week tried and failed to impeach him over a tax revenue dispute.

He has a 38 percent approval rating, according to a poll conducted earlier this month by news network TVBS, which, while low, is still better than his 32 percent approval rating during his first year in office.

His disapproval rating has also fallen from 55 percent to 44 percent.

Lai said on Wednesday that his government would take other measures to make up the shortfall in Taiwan’s defence spending.

As president, Lai has also had to contend with uncertainty from the US, Taiwan’s longstanding unofficial ally, amid growing pressure from China, which has staged five rounds of military exercises around Taiwan since his May 2024 inauguration.

US President Donald Trump said last week that US arms sales to Taiwan could be used as a “very good negotiating chip” with Beijing.

Trump’s remarks followed a meeting with Chinese President Xi Jinping in Beijing, where the Chinese leader called on Trump to take a stronger stance on Taiwan’s political status.

The US has for decades maintained a deliberately ambiguous stance on the issue.

Lai was also forced to delay a state visit to Eswatini, formerly known as Swaziland, Taiwan’s only diplomatic ally in Africa, in April when several countries denied him access to their airspace due to alleged Chinese pressure. He later made the trip through a circuitous route on board Eswatini King Mswati III’s private jet.

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China’s Xi Jinping and Russian President Vladimir Putin meet in Beijing | Politics News

DEVELOPING STORY,

Xi and Putin hold talks just days after US President Donald Trump made an official visit to China.

A meeting between Chinese leader Xi Jinping and visiting Russian President Vladimir Putin has started in Beijing, Chinese state media report.

Xi welcomed Putin to the Chinese capital on Wednesday, shaking hands with the Russian leader outside the Great Hall of the People before their talks, video by Russian media showed.

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Before entering the Great Hall, Putin and Xi walked down a red carpet, rolled out to greet the Russian leader, and stood as a military band played their two national anthems.

Putin began the talks by hailing the “strong, positive” momentum in cooperation between Russia and China, according to Russian media.

“Even amid unfavourable external factors, our cooperation and economic cooperation is showing strong, positive momentum,” Putin told Xi.

Addressing Putin, Xi lauded the “unyielding relationship” between China and Russia.

“We have been able to continuously deepen our political mutual trust and strategic coordination with a resilience that remains unyielding despite trials and tribulations,” Xi told Putin, according to China’s Xinhua news agency.

The Chinese leader also addressed war in the Middle East, telling his Russian counterpart that further conflict was “inadvisable” and a ceasefire was necessary.

“A comprehensive ceasefire is of utmost urgency, resuming hostilities is even more inadvisable and maintaining negotiations is particularly important,” Xi said, according to Xinhua.

Russian President Vladimir Putin walks with Chinese President Xi Jinping during a welcoming ceremony at the Great Hall of the People in Beijing, China May 20, 2026. REUTERS/Maxim Shemetov/Pool TPX IMAGES OF THE DAY
Russian President Vladimir Putin walks with Chinese President Xi Jinping during a welcoming ceremony at the Great Hall of the People in Beijing, on Wednesday [Maxim Shemetov/Pool/Reuters]

Al Jazeera’s Katrina Yu, reporting from Beijing, noted that Putin’s visit and that of the recently concluded trip by US President Donald Trump to China were very different.

Putin, she said, is marking 25 years of the Sino-Russian friendship, has visited China dozens of times, and met with Xi on more than 40 other occasions.

“So this visit will really be about deepening existing coordination and cooperation,” Yu said.

“We are expecting that the two sides will update each other on the situation in the Middle East, as well as Ukraine. No doubt, Xi Jinping will also talk to Putin about what was discussed with Donald Trump last week,” Yu said.

Putin is being accompanied by a large delegation of Russian businesspeople and government leaders, and the Kremlin has announced that the two leaders will sign some 40 different agreements, Yu said, covering everything from the economy and tourism to education.

“But I think for Putin, the main topic of discussion with Xi Jinping is going to be on energy security,” Yu said.

“Since the war in Ukraine, any gas sales that were previously heading to Europe – that is all dried up – and Russia is in desperate need of revenue to replace that, especially since we are in the fifth year of the Ukraine war,” she added.

In a video address released before meeting Xi, Putin said Beijing and Moscow are prepared to cooperate with each other on “core interests ‌of ⁠the two countries, including the protection of sovereignty and national unity”, the Reuters news agency reports.

Both countries are actively expanding ⁠ties in economy, politics and defence, Putin said, adding that “a close” and “strategic” connection between Moscow and Beijing ⁠was playing “a stabilising role” in global relations.

“We are not aligning against anyone, but working ⁠for the cause of peace and universal prosperity,” Putin said.

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Putin meets Xi: Why Russia and China need each other | International Trade News

Russian President Vladimir Putin arrived in China on Tuesday evening for a two-day visit centred on talks with Chinese President Xi Jinping, as Moscow and Beijing draw closer amid war, sanctions and an increasingly fractured global order.

Putin’s visit is the second face-to-face meeting he has held with Xi in less than a year and coincides with the 25th anniversary of the 2001 Treaty of Good-Neighborliness and Friendly Cooperation, the agreement that formalised ties between Russia and China following decades of ideological rivalry and mutual suspicion.

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The visit comes just days after United States President Donald Trump left Beijing following his own two-day visit to the Chinese capital for meetings with Xi.

Both Moscow and Beijing are navigating tricky relations with Washington, with analysts saying the unpredictability of Trump’s foreign policy has had the effect of pushing Russia and China even closer together.

Their deepening partnership also comes against the backdrop of the war in Ukraine, mounting tensions around Iran, and disruption to shipping through the Strait of Hormuz – a crisis that has rattled global energy markets and renewed Beijing’s concerns over the security of its oil and gas supplies.

With one of the world’s most strategically vital waterways under threat, China has increasingly turned towards Russia as a reliable overland energy supplier.

Analysts say Xi’s decision to host Trump and Putin within the space of a week is no coincidence, reflecting Beijing’s attempt to cast itself as a trusted actor in an increasingly fragmented and volatile world order.

How have China-Russia relations changed over the decades?

China and Russia have long occupied a complicated place in each other’s histories. Once bound together through communist ideology and shared opposition to Western capitalism, the Soviet Union and Maoist China later became bitter rivals, with tensions along their 4,300km (2,670-mile) border bringing the two countries close to conflict during the Cold War.

However, that border has since transformed from a frontier of insecurity into one of strategic cooperation and trade.

Neither Xi nor Putin is a frequent international traveller. Putin is the subject of an International Criminal Court (ICC) arrest warrant over the war in Ukraine, while Xi rarely leaves China other than for carefully choreographed state visits. But both leaders have invested heavily in maintaining personal ties with each other.

The two have repeatedly called each other “friends”, and their relationship has deepened, particularly since Russia’s invasion of Ukraine in 2022, which pushed Moscow further into international isolation and forced the Kremlin to look southeastwards for trade amid Western sanctions.

“Russia and China look confidently towards the future,” Putin said in remarks carried by Russian state media ahead of the visit.

He said the two countries were “actively developing cooperation in politics, economics, defence, expanding cultural exchanges, and fostering interpersonal interaction”.

“In essence, jointly doing everything to deepen bilateral cooperation and advance global development for the wellbeing of both nations,” Putin added.

Why Russia needs China

China has become an economic lifeline for Russia as the country’s economy has shifted to a wartime footing, with two-way trade between the countries more than doubling between 2020 and 2024, when it reached $237bn for the year.

But the relationship is also uneven. While China is Russia’s largest trading partner, Russia accounts for only about four percent of China’s total international trade. China’s economy is also vastly larger, and Beijing holds considerably more leverage in negotiations between the two sides.

Since the invasion of Ukraine, Moscow has become increasingly reliant on Chinese technology and manufacturing. A recent Bloomberg report found Russia was sourcing more than 90 percent of its sanctioned technology imports from China, including components with military and dual-use applications vital to drone production and other defence industries.

China has also emerged as a crucial buyer of Russian oil and other energy products at a time when European markets have largely closed to Moscow in response to the Russia-Ukraine war. With Western sanctions restricting Russia’s options, the Kremlin has few viable alternatives to China’s scale of demand.

Analysts say the imbalance means Beijing is often able to negotiate from a position of strength, securing access to Russian oil and gas at discounted prices while expanding its influence over Moscow’s economic future.

INTERACTIVE-What do China and Russia trade most?-sep3-2025 copy 4-1756879426
(Al Jazeera)

Why China still needs Russia

While the relationship is uneven, it is not one-sided. Russia provides something increasingly valuable in a turbulent world: secure access to vast energy resources beyond vulnerable maritime trade routes.

The war surrounding Iran and disruptions in the Strait of Hormuz have heightened Beijing’s concerns over energy security, given China’s heavy dependence on imported oil and gas passing through contested shipping lanes.

That has renewed attention on the proposed Power of Siberia 2 pipeline, a long-delayed project expected to feature prominently in this week’s discussions.

If completed, the pipeline would transport 50 billion cubic metres of Russian gas annually to China via Mongolia, significantly expanding energy flows between the two countries.

But it is more than just an economic relationship. China also values Russia as a geopolitical partner. Both countries are permanent members of the United Nations Security Council and frequently align diplomatically in opposition to US-led policies.

While analysts say China has been careful not to become formally tied to Moscow through a rigid military alliance, the two countries have still gradually reinforced their partnership through increasingly regular joint military exercises, including the “Joint Sea” naval drills that began in 2012.

Last year, China and Russia launched fresh naval drills in the Sea of Japan near the Russian port of Vladivostok, with exercises focused on submarine rescue, anti-submarine warfare, air defence, missile defence and maritime combat operations. Analysts say the drills help signal strategic alignment between Beijing and Moscow without the mutual defence commitments of a formal alliance.

Experts say the strength of the partnership lies in its flexibility. While Western governments have often portrayed the relationship as fragile and driven largely by a shared opposition to the West, analysts say, it may prove more durable because it is rooted in shared economic and strategic interests rather than ideology alone.

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Russian President Vladimir Putin arrives for state visit to China

May 19 (UPI) — Russian President Vladimir Putin arrived Tuesday in Beijing for a state visit after U.S. President Donald Trump made a similar visit last week.

It’s Putin’s 25th trip to the country and marks his most recent meeting with Chinese leader Xi Jinping with a “quite packed” schedule, Russian news agency TASS reported. The two leaders have met more than 40 times over their respective tenures.

“Hosting two of the most powerful leaders in the world in a matter of days shows China’s growing confidence in its place and standing in the world,” said William Yang, a senior analyst at the International Crisis Group, The Guardian reported. He said the Chinese leader “likely wants to remind Trump that Beijing has other solid and robust relationships that it can count on, so Washington can’t easily isolate or harm Beijing if it tries to.”

TASS said that Xi will host Putin for tea and the two leaders will discuss “pressing international issues.” The visit will also include talks involving delegations, a meeting with Chinese Premier Li Qiang, a tour of an exhibit on the relationship between the two countries and other events, the news agency said.

In a video address to China on Monday, Putin said the relationship between the two countries had reached an “unprecedented level,” The Guardian reported. Meanwhile, Guo Jiakun, China’s foreign ministry spokesperson, said, “The friendship between China and Russia will be further deepened and will be more deeply rooted in people’s hearts.”

In Putin’s video address, the Russian leader mentioned that transactions and financial considerations between the countries have taken place mainly in Russian and Chinese currencies rather than the U.S. dollar.

In this way, the countries have been building resistance against sanctions from Western nations; China does not acknowledge sanctions against Russia and has purchased billions in Russian fossil fuels since Russia’s invasion of Ukraine. There have also been sanctions against China since that war began.

Wreathes are seen amongst the statues at the Korean War Veterans Memorial during Memorial Day weekend in Washington on May 27, 2023. Memorial Day, which honors U.S. military personnel who died while in service, is held on the last Monday of May. Photo by Bonnie Cash/UPI | License Photo

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Xi Jinping seeks to strengthen ties with Putin during China visit | Politics

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China’s Xi Jinping is hosting Russian President Vladimir Putin, just days after welcoming Donald Trump to Beijing. The Chinese leader is set to discuss energy security and trade, while balancing access to European markets, as Al Jazeera’s Katrina Yu explains.

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A Rising China, an Established America, and the Thucydides Trap

When the ancient Greek historian Thucydides chronicled the Peloponnesian War, he did not write only about the clash between Athens and Sparta. He documented the fate of the small city-states caught between them in 431BC. Corcyra and Potidaea, neutral territories with no grand strategy of their own, were crushed, annexed, or forced into allegiance as the two great powers dragged the entire Greek world into conflict.

Thucydides famously wrote that it was the rise of Athens and the fear that this instilled in Sparta that made war inevitable. Yet for the smaller states, there was no trap to escape. There was only destruction when great powers fought. This forgotten truth frames the most dangerous bilateral relationship on earth today.

When President Xi Jinping invoked the Thucydides Trap during his May 2026 summit with President Donald Trump in Beijing, he framed it as a question between two great powers asking whether China and the US can rise above the so-called Thucydides Trap and create a new framework for major-power relations. The concept was popularized by Harvard political scientist Graham Allison, who identified sixteen historical cases over the past five hundred years where a rising power challenged an established one, with twelve ending in war. Allison’s framework casts China as the rising Athens and the US as the established Sparta. It centers on whether these two great powers can avoid destroying each other, while leaving less examined what happens to the smaller states caught in between. At the summit, President Xi warned that if mishandled the two countries could clash or even enter into conflict, leading the entire China-US relationship into a highly dangerous scenario. He emphasized that the Taiwan issue is the most critical matter in their bilateral relation, implicitly acknowledging that miscalculation could materialize the very trap he warned against.

The competition between the US and China has grown far beyond trade into something that locks other countries into its orbit. What started as a tariff dispute has become overlapping conflicts across technology, finance, energy, and data governance, each one reinforcing the others and closing off neutral ground. This creates a situation close to a legal Catch-22 where China’s Ministry of Commerce used its blocking statute for the first time in May 2026 against US sanctions and put multinational companies in a position where following Washington’s extraterritorial rules meant breaking Beijing’s laws and following Beijing’s rules meant breaking Washington’s. This is not a byproduct of the competition but is becoming the competition itself.

US bans on advanced semiconductors and AI chips combined with Chinese limits on gallium, germanium, and rare earths along with rival payment systems like China’s Cross-Border Interbank Payment System (CIPS), which provides cross-border payment services to more than 5,000 banking institutions across 190 countries and regions as an alternative to Western banking rails and clashing visions of internet sovereignty have built up into a tightly connected system where doing business globally increasingly means either choosing a side or paying escalating costs for staying neutral, with the heaviest pressure in tech and finance while other domains retain more space for hedging. These costs hit hardest not the US or China but the countries and firms that have no power over either. China-US trade, technology, and regulatory pressures have repeatedly spilled over into third countries, and Southeast Asia has often been caught in the middle. Vietnam has faced US scrutiny over goods assembled with Chinese-linked inputs, Cambodia experienced significant trade diversion during the 2018 US-China trade war, Malaysia came under pressure to tighten controls on semiconductor shipments, and Singapore has had to navigate the compliance burdens created by competing US and Chinese rules.

More broadly, small states across the globe must navigate between two major powers, leaning toward China for economic reasons and toward the US for security reasons. ASEAN has long relied on non-alignment and hedging to preserve, and of course expand, room to maneuver if possible, but intensifying US-China competition is narrowing that room. Some states have turned rivalry into opportunity. Vietnam has attracted manufacturing shifts and foreign investment as companies diversify supply chains away from China. India, Gulf states, and others actively play both sides or carve strategic niches, extracting economic benefits while maintaining security partnerships. Yet these adaptive strategies have limits, and the space for maneuvering narrows as competition intensifies, leaving smaller states with growing pressure, higher compliance costs, and reduced autonomy.

The relationship between China and the US remains the world’s most dangerous bilateral relationship not because President Xi and President Trump might make war on each other but because small countries worldwide will be the first casualties when that war comes or even when competition intensifies. The real Thucydides Trap is not whether America and China can avoid war with each other but whether small states can survive the rivalry even if both of them somehow manage peaceful coexistence. As fence sitting becomes tense and the legal arms race traps countries in impossible dilemmas, more countries face choices that progressively erode the strategic autonomy they have long relied on. Thucydides wrote about the Peloponnesian War with eyes on all participants including the allies of Athens and Sparta who became victims of the trap. The lesson from ancient Greece is very clear that when great powers fight the weak do not survive, and the stories of Corcyra and Potidaea matter just as much as the struggle between Athens and Sparta.

When Athens and Sparta finally went to war, the first thing that died was the freedom of everyone caught between them. The US and China may or may not escape their trap but regional powers, developing nations, and many other small countries already know themselves to be inside it.

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As trade war with China looms, how can the EU defend itself?

As Chinese-made products are flooding the EU market and threatening thousands of jobs, the European Commission is stepping up its work to protect the bloc’s production from the risks of China’s excess production.


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The move comes as data from Chinese customs showed that, in the first four months of 2026, Beijing accumulated a surplus of $113 billion with the EU-27, up from $91 billion over the same period in 2025. The surplus widened by $22 billion over 12 month, while the EU’s trade deficit with China had already reached €359.9 billion in 2025.

Pressure is also mounting on Brussels as Beijing has repeatedly threatened retaliation in recent weeks over several EU laws limiting access to the single market for Chinese companies.

On Friday, China also banned these companies from engaging with the Commission over EU foreign subsidy investigations.

To address the China issue and try to restore a level playing field, EU Commissioners are set to debate the matter on 29 May. What options does Europe have on the table?

1. Cutting dependence on Chinese components

The Financial Times reported on Monday that a plan to force EU companies to buy critical components from at least three different suppliers was in the pipeline at the European Commission.

The idea would be to set thresholds of around 30% to 40% for what can be bought from a single supplier, with the rest having to be sourced from at least three different suppliers, not all from the same country.

The proposal comes after China last year restricted exports of rare earths and chips, which are critical for key EU industries such as green tech, cars and defence.

2. Targeting strategic sectors with tariffs

In its economic security strategy presented last December, the European Commission also said it would present new tools by September 2026 to strengthen the protection of EU industry from unfair trade policies and overcapacities.

“We will fight tooth and nail for every European job, for every European company, for every open sector, if we see they are treated unfairly,” Maroš Šefčovič told Euronews.

A decision to impose new quotas and double tariffs on global steel imports, dominated by Chinese overcapacities, was already agreed by EU countries and the European Parliament in April.

Now the chemical industry is in the spotlight. Chinese chemical imports have surged 81% over five years. But the EU chemical sector also relies on exports abroad, including to China, the industry’s fourth export market, which makes any measure targeting China complicated.

“As an export-oriented industry, the European chemical industry generates over 30% of its sales abroad. That creates a risk of retaliation from third countries,” Philipp Sauer, trade expert at Cefic, the lobby group of the European chemical industry, told Euronews.

3. Hitting imports with anti-dumping or anti-subsidy duties

The Commission can also impose duties on Chinese companies when import prices fall below those at which they sell their products on their domestic market. It can also investigate companies for receiving unfair subsidies.

However, investigations can take up to 18 months, and cases are piling up at the Commission’s DG Trade, which has only around 140 officials to handle them.

Sauer said that between one third and half of all ongoing investigations relate to the chemical sector.

4. Using the Anti-Coercion Instrument

The Anti-Coercion Instrument is a last-resort tool — the so-called trade bazooka — which can be used in cases of economic pressure from a third country and would allow the EU to hit China with strong measures such as restricting access to licences or public procurement in the EU.

But its use would require the backing of a qualified majority of member states, which is not guaranteed.

Germany opposed tariffs adopted by the EU in 2024 against Chinese electric vehicles. Spanish Prime Minister Pedro Sánchez, who has visited China four times in three years, also supports closer ties with Beijing, seeking to secure major Chinese investment.

5. Unifying member states

At the same time, Brussels faces the risk that its decoupling strategy might face significant resistance from national governments. EU member states remain divided over how to approach China, which could in turn allow Beijing to play capitals against each other.

Such differences are already emerging in the information and communications technology (ICT) sector, where the EU has proposed a new mechanism requiring the phase-out of so-called high-risk suppliers, such as Huawei and ZTE, in strategic industries, starting with telecommunications.

The proposal, included in the revamp of the EU Cybersecurity Act, is sparking controversy among several European governments, most notably Spain and Germany, which have long worked with Chinese equipment now deeply embedded in their digital infrastructure.

This de-risking strategy has also raised financial concerns, since Chinese suppliers tend to be much cheaper than European alternatives such as Ericsson and Nokia, partly because they are publicly subsidised by Beijing.

European telecom operators have asked the EU for financial compensation to replace their Chinese equipment, following the example of the US “rip and replace” programme, but neither the EU nor national governments seem keen to put the money on the table.

In other words, the EU’s full decoupling from China might have high political and economic costs.

Whether European countries are willing to bear it remains to be seen.

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