China

On China, the mood at the European Commission has shifted in recent months.

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China hawks are gaining ground inside both the Commission’s powerful Directorate-General for Trade and in the cabinet of President Ursula von der Leyen, Euronews has learned, with drastic new measures being considered to counter what is seen as unfair competition.

The 27 EU commissioners are set to debate on their China strategy on 29 May, with one official saying, “It will be about acknowledging there is a problem and that something needs to be done.”

Tensions flared Monday after China’s Ministry of Commerce threatened retaliation against the EU over its Made in Europe legislation, which sets strict conditions on foreign direct investment.

An EU official told Euronews the Chinese were “playing games,” adding that the Commission’s priority remains engagement with Beijing through multiple channels set up in recent months.

However, Commission services are already working on new measures to address China’s economic threats, sources have confirmed. “We don’t see any move from the Chinese despite all the issues we have flagged with them, so there’s a reflection on whether we should do more,” one said.

Another source said the release of Germany’s trade deficit figures before Christmas marked a turning point for the Commission.

Data published last autumn by Germany Trade & Invest (GTAI) showed a record €87 billion German trade deficit with China — a wake-up call in Berlin, long focused on securing market access in China ahead of protecting domestic manufacturing.

China has since surged up the agenda for German industry, for the Bundestag — which has set up a dedicated committee — and for the Commission, whose German president has Berlin’s ear.

The EU has long grappled with cheap Chinese imports threatening its industry. Pressure intensified last year after the US slapped steep tariffs on Chinese goods, effectively shutting its market and pushing Beijing to reroute overcapacity in sectors like steel and chemicals toward Europe.

A recent report by the French High Commission for Strategy and Planning, a French government advisory body, warned that “the production cost gaps, as assessed by industry players [across Europe], have now reached levels incompatible with sustainable competition, averaging between 30% and 40%, and exceeding 60% in certain segments (industrial robotics, mechanical components).”

Under these conditions, how can the EU defend its market?

The bloc’s leverage is mainly limited to its 450 million-strong consumer base. Still, one source said it is “increasingly becoming mainstream” inside the Commission to warn Beijing that the EU market could close without rebalancing.

But the trade-offs are stark.

Chinese electric vehicles — hit with EU tariffs in October 2024 — highlight the dilemma. China depended equally on the US and EU markets for almost all its exports before Donald Trump’s return to the White House in 2025. “It cannot easily diversify its EVs as it will not sell in Africa, nor in southeast Asia, where there’s no infrastructure,” another source said.

At the same time, Europe remains reliant on China imports in many of the same sectors where China depends on Europe. “Are we to close our market to lithium batteries from China? We cannot do this overnight,” the same source said. The same applies to solar panels, laptops and medical devices.

Commission explores anti-coercion tool

The EU has trade defence tools — including anti-dumping and anti-subsidy duties — but they can take at least 18 months to deploy after a complaint is filed. Two sources said the Commission is working on new instruments, but by the time they bite, the damage may already be done.

A fourth source described an overcapacity instrument as still “premature.”

However, Commission services are also mulling the Anti-Coercion Instrument (ACI), which allows the EU to deploy a wide range of measures — from tariffs to restrictions on public procurement or intellectual property — in response to economic pressure from third countries.

The tool, sometimes described as a “trade bazooka”, has never been used since its creation in 2023, but resurfaced after China weaponised rare earth exports in October 2025 during its trade standoff with the US by imposing strict export controls.

Exports resumed after Washington and Beijing agreed on a one-year truce, which also covers Europe. But that deal expires in October 2026, leaving uncertainty hanging over the EU.

Brussels wants the anti-coercion tool ready if needed.

Tensions could rise further after Beijing’s threats over the Industrial Accelerator Act — the Made in Europe legislation now debated by member states and MEPs — or over pressure linked to the Cybersecurity Act, which could phase out Chinese telecom operators from the EU market.

Securing member states’ backing

However, a qualified majority of EU countries is needed to activate the ACI, and member states remain split.

“It requires a political support higher than for the traditional anti-dumping or anti-subsidies duties which can only be rejected by a reversed majority of EU countries,” a source said.

Despite the wake-up call, German Chancellor Friedrich Merz struck a softer tone in March, floating a long-term trade deal with Beijing.

But in Brussels, that idea is off the table.

“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.

Spanish Prime Minister Pedro Sánchez — who has visited China four times in three years and secured major Chinese investment — backs closer ties with Beijing.

Meanwhile, Belgian Prime Minister Bart De Wever urged a tougher line in an 18 March letter to von der Leyen.

“We have arrived at a point of no return in which we need to make difficult choices in the short term towards China to protect our industries, economies and the well-being of our citizens in the long term,” he wrote.

France, long a proponent of a hard line on China, shares that view.

Bejing tightens scrutiny of artificial intelligence industry amid intensifying geopolitical rivalry with the US over the technology.

China has said it is blocking tech giant Meta from an acquisition of artificial intelligence (AI) startup Manus, tightening scrutiny of investment in domestic startups developing frontier technologies from the United States.

China’s National Development and Reform Commission (NDRC) said on Monday that it was prohibiting the foreign acquisition of Manus, without specifically naming Meta.

The move highlights Beijing’s increased concern over US acquisitions of Chinese AI talent and intellectual property, as Washington tries to limit Chinese tech firms’ access to advanced US chips.

It was not immediately clear on what grounds China was seeking the annulment of a deal involving a Singapore-based company and how, if at all, a completed acquisition transaction would be unwound.

Manus, which has Chinese roots but is based in Singapore, provides general-purpose AI agents designed to carry out complex tasks with minimal human intervention.

The call to annul the deal was made by the commission in accordance with Chinese laws and regulations, the NDRC’s statement said.

California-based Meta said in response to the statement: “The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry.”

A White House spokesperson said in a statement that the Trump administration “will continue defending America’s leading and innovative technology sector against undue foreign interference of any sort”.

Meta announced in December that it was acquiring Manus. It is a rare case of a major US tech group buying an AI company with strong links to China. The deal was forecasted to help expand AI offerings across Meta’s platforms.

Meta had said there would be “no continuing Chinese ownership interests in Manus” and that Manus would discontinue its services and operations in China.

But China said in January that it would investigate whether the acquisition would be consistent with its laws and regulations.

After a $75m fundraising round led by US venture firm Benchmark in May 2025, Manus shut its China offices, laying off dozens of employees. It then moved its operations to Singapore.

This enabled Manus’s parent company, Butterfly Effect, to reincorporate ⁠in Singapore and bypass US investment restrictions on Chinese AI firms, as well as Chinese rules limiting domestic AI firms’ ability to transfer their IP and capital overseas.

The Chinese bid to block the deal comes weeks before a planned mid-May summit between US President Donald Trump and Chinese President Xi Jinping in Beijing.

The longest sea crossing connects three major cities

Stretching 34 miles across the Pearl River Delta, the Hong Kong-Zhuhai-Macau Bridge holds the record as the longest sea crossing ever constructed, connecting the southern Chinese cities of Hong Kong, Zhuhai and Macau. The 55km structure took nine years to build at a cost of approximately £15bn.

It has dramatically cut journey times between the three cities, transforming what was once an hour-long ferry trip into a drive of roughly 40 minutes. The bridge forms part of a broader initiative to strengthen transport links across the Greater Bay Area, a region the Chinese government is nurturing into a major economic powerhouse.

By connecting Hong Kong and Macau more directly with cities in Guangdong province, the crossing is designed to boost trade and movement throughout the region. Its construction incorporates several key elements, including a series of long-span bridges, man-made islands and connecting roads.

The main section features three navigation channel bridges – Jiuzhou, Jianghai and Qingzhou.

This was constructed to permit large vessels to pass through one of China’s most heavily trafficked shipping zones.

Engineers were required to contend with challenging conditions, including regular typhoons and a demanding marine environment, reports the Express.

The bridge employs single-column piers embedded in the seabed to minimise disruption to water flow and reduce the impact on local wildlife, including the Chinese white dolphin.

The three principal bridges feature cable-supported structures, each boasting a distinctive tower design.

These were designed to provide the crossing with a uniform yet diverse aesthetic, especially considering its prominence from land, sea and air.

The Jiuzhou Bridge maintains its original sail-shaped towers after modifications during the detailed design stage.

Engineering consultancy Arup played a role in various aspects of the scheme, including preliminary design work, artificial island construction and significant road and tunnel connections on the Hong Kong and Macau sides.

Further infrastructure associated with the crossing encompasses boundary crossing facilities and links such as the Tuen Mun-Chek Lap Kok Link, assisting in incorporating the bridge into the broader transport network.

Since its inauguration, the bridge has emerged as a vital route within the region’s transport infrastructure, demonstrating both the magnitude of China’s infrastructure objectives and the practical requirement for quicker links between its major urban centres.

Taiwan has downplayed the impact of new Chinese sanctions targeting European defense companies involved in arms sales to the island. The measures, announced by China, restrict exports of dual use goods to seven firms, marking a rare move against European entities over Taiwan related issues.

Despite the escalation, Taiwan’s Defence Minister Wellington Koo said the sanctions would not disrupt the island’s ability to procure military equipment.

China’s Expanding Use of Sanctions

Beijing has increasingly used economic and trade restrictions to respond to foreign involvement in Taiwan’s defense. While similar sanctions have frequently targeted U.S. arms manufacturers, extending them to European companies signals a broader willingness to pressure multiple partners simultaneously.

The move reflects China’s ongoing effort to isolate Taiwan internationally and deter military cooperation with the island.

Limited European Military Role

Europe’s direct role in arming Taiwan has historically been limited. Major defense exports such as fighter jets have not been supplied for decades due to concerns about damaging relations with China.

However, smaller scale cooperation and component level trade have continued, making these sanctions symbolically significant even if their immediate practical impact is modest.

Diversified Supply Strategy

Taiwan relies heavily on the United States for its defense needs, but it has also worked to diversify procurement channels in recent years. According to Koo, this strategy ensures that disruptions from any single source, including sanctioned European firms, can be mitigated.

Growing support from parts of Central and Eastern Europe, particularly after Russia’s invasion of Ukraine, has also provided Taiwan with additional diplomatic and logistical avenues.

Geopolitical Context

The sanctions come amid heightened global tensions and shifting alliances. China views Taiwan as its own territory and strongly opposes any foreign military assistance to the island.

At the same time, Taiwan’s security concerns have intensified, prompting it to strengthen international partnerships and defense preparedness.

Analysis

China’s decision to target European companies represents an escalation in its economic statecraft, aiming to widen the cost of supporting Taiwan beyond the United States. While the immediate impact on Taiwan’s military capabilities appears limited, the move could have a chilling effect on future European involvement.

Taiwan’s confidence reflects its reliance on U.S. support and its broader diversification strategy. However, repeated sanctions and pressure campaigns could gradually narrow its options, especially if European firms become more risk averse.

For Europe, the sanctions pose a strategic dilemma between economic ties with China and growing political alignment with Taiwan and its partners. For China, they reinforce its stance on sovereignty while testing how far it can push back against international support for Taiwan without triggering broader backlash.

Overall, the episode underscores how economic tools are increasingly being used in geopolitical competition, even when their direct material impact remains limited.

With information from Reuters.

As part of promoting the Chinese Global Security Initiative (GSI) as an alternative to the Western approach, Chinese President Xi Jinping proposed a four-point initiative for peace and stability in the Middle East in mid-April 2026, following escalating tensions in the Middle East and the US-Israeli war against Iran. This initiative aims to offer Chinese wisdom for conflict resolution based on sovereignty and development, in contrast to what China considers destabilizing Western alliances. President Xi Jinping discussed and presented this initiative in mid-April 2026 during his meeting with Khalid bin Mohammed Al Nahyan, Crown Prince of Abu Dhabi, outlining a comprehensive four-point initiative aimed at preserving and promoting peace and stability in the Middle East. This Chinese initiative comes within the context of Beijing’s efforts to strengthen its role as a diplomatic mediator following the escalation of tensions in the region. Chinese President Xi Jinping’s four peace initiatives for 2026 are the commitment to the principle of peaceful coexistence, supporting Gulf and Middle Eastern countries in improving their relations, and building a comprehensive, cooperative, and sustainable security architecture in the region based on the principle that the countries of the region are neighbors and cannot be geographically relocated. (Commitment to the principle of national sovereignty), through China’s support for and respect of the sovereignty and territorial integrity of states and its rejection of interference in their internal affairs, while emphasizing the protection of the security of states, their people, infrastructure, and institutions. (China’s full commitment to the principle of the rule of international law), by adhering to the basic norms of international relations and supporting the international system centered on the United Nations, to prevent a return to the law of the jungle. (Reconciling development and security by affirming that security is a prerequisite for development and working to create a favorable environment for sustainable economic development to ensure long-term stability.)

These Chinese moves come as part of China’s efforts to present its Global Security Initiative (GSI) as an alternative to the Western approach to conflict resolution. They are considered a direct response from China to Western and American policies. These Chinese peace proposals emerged in the context of Beijing’s criticism of the American blockade on Iranian ports, which it described as dangerous and irresponsible. By presenting a Chinese security model, China seeks to position itself as a partner committed to peace and dialogue, rather than the American military alliances that Beijing considers a threat to global security. Furthermore, this initiative aims to reinforce the Beijing Declaration, as China seeks to solidify its role as a mediator (following Saudi-Iranian and Palestinian faction mediation efforts) through a formal initiative.

Thus, the Chinese initiative emerged as a direct response to the escalating tensions in the Gulf region and Iran and as a countermeasure to the American blockade. The Chinese Foreign Ministry described the American blockade of Iranian ports and the Strait of Hormuz as dangerous and irresponsible, threatening the security of navigation in the Strait of Hormuz. Especially after the failure of US negotiations with Iran and US President Donald Trump’s announcement of a naval blockade on Iranian ports on April 12, 2026, following the collapse of peace talks in Islamabad, Pakistan, China stepped in as an international mediator. Consequently, China is attempting to promote its own model by presenting itself as a peace partner focused on economic dialogue, in contrast to Western military alliances, which Beijing considers a threat to global security.

In this context, China is trying to leverage its past diplomatic successes to solidify its role in promoting the Beijing Declaration and to play a mediating role in resolving conflicts, such as the Saudi-Iranian mediation. Based on the 2023 Beijing Agreement to normalize relations, China seeks to strengthen its role in the Gulf region. Furthermore, China is working to solidify the Beijing Declaration of July 2024, which aimed to end the Palestinian division, achieve reconciliation between Palestinian factions, and form a national unity government, as a model for its mediation in resolving complex conflicts. With the strengthening of the Beijing Declaration, the new proposal aims to transform the Beijing Declaration from a factional agreement into an official, internationally supported initiative to solidify China’s role as a key mediator in Palestine as well.

These Chinese moves are part of a broader Chinese strategy to promote the Global Security Initiative (GSI) as an alternative to the Western approach, as outlined by Chinese President Xi Jinping for the period 2022-2026. China emphasizes its rejection of the Cold War mentality, criticizing Washington’s military alliances, such as the trilateral AUKUS security pact between the US, Australia, and the UK, and alliances in the Middle East. China also emphasizes the concept of indivisible security, promoting the idea that a nation’s security cannot be achieved at the expense of other nations’ security. China seeks influence through mediation, aiming to position itself as an alternative superpower capable of addressing the root causes of conflicts through development, rather than through the threat of force.

Chinese startup says DeepSeek-V4-Pro beats all rival open models for maths and coding.

China’s DeepSeek has unveiled the latest versions of its signature artificial intelligence-powered chatbot, a year after its flagship model sent shockwaves through the global tech scene.

The Chinese startup launched preview versions of DeepSeek-V4-Pro and DeepSeek-V4-Flash on Friday as it touted its ability to go toe-to-toe with US rivals such as OpenAI and Google.

Like DeepSeek’s previous chatbots, V4-Pro and V4-Flash follow an open-source model, meaning developers are free to use and modify the source code at will.

DeepSeek-V4-Pro beats all rival open models for maths and coding, and trails only Google’s Gemini 3.1-Pro, a closed model, for world knowledge, DeepSeek said in an announcement on social media.

The “pro” version’s performance falls only “marginally short” of OpenAI’s GPT‑5.4 and Gemini 3.1-Pro, “suggesting a developmental trajectory that trails state-of-the-art frontier models by approximately 3 to 6 months,” the Hangzhou-based startup said.

The “flash” model has similar reasoning abilities to the “pro” version, while offering faster response times and “highly cost-effective” usage pricing, the firm said.

The release comes after DeepSeek-R1 stunned the tech sector upon its launch in January last year with capabilities broadly comparable with those of ChatGPT and Gemini.

Marc Andreessen, a prominent Silicon Valley venture capitalist with close ties to United States President Donald Trump, hailed the model’s release at the time as “AI’s Sputnik moment”.

The performance of the Chinese-developed model attracted particular attention as its developers claimed to have spent less than $6m on computing costs – a fraction of the multibillion-dollar budgets that are usual in Silicon Valley.

Some tech analysts challenged DeepSeek’s account of working with such scant resources, arguing that the startup most likely had access to greater funding and more advanced chips than acknowledged.

DeepSeek’s arrival on the scene prompted blowback in some countries amid concerns about data protection and Chinese government censorship.

Multiple US states, Australia, Taiwan, South Korea, Denmark and Italy introduced bans or other restrictions on DeepSeek-R1 shortly after its release, citing privacy and national security concerns.

Published on 23/04/2026 – 17:09 GMT+2•Updated
17:41

French liberal MEP Christophe Grudler told Euronews the Commission’s proposed European preference, once adopted, covering public procurement in strategic sectors such as clean tech, cars and energy-intensive industries (aluminium and steel) should be limited to a core group of non-EU countries.

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The “Made in Europe” provisions of the so-called “Industrial Accelerator Act” have triggered a fierce political battle between supporters, led by Germany and Nordic countries, of a broad definition including “like-minded” partners, and those, led by France, pushing for a narrower approach.

In its proposal unveiled on 4 March, the Commission leaned towards the broader interpretation.

“The Commission’s option is very poor. It reflects a completely outdated view of trade policy,” Grudler said, adding, “When the Americans introduced the Buy American Act, they didn’t worry about whether it would strain ties with Europe. At some point, we need to stop being naive.”

The MEP is set to be one of the lead negotiators on the proposed new rulesin the European Parliament as talks begin shortly.

The European preference aims to counter foreign competition, notably from the US and China. The Commission proposes excluding non-EU countries depending on how open they are to the EU taking part in their procurement markets as well as existing trade agreements.

Geography should prevail, Grudler said

But Grudler argues geography should be the guiding principle, limiting “Made in Europe” to countries closest to the EU — first and foremost the European Economic Area: Iceland, Liechtenstein and Norway.

Switzerland could also be “a good candidate”, he said.

“Switzerland has had a public procurement agreement since 1989. It is a bilateral agreement stating that all European companies have access to the Swiss public procurement market, and that all Swiss companies have access to the European public procurement market. It is therefore a rather good candidate.”

The UK could also be considered to some extent, but “conditions will need to be examined” following Brexit, he added. “There is also a point where Europe has to make sure it comes out financially ahead.”

He wants the law to send “a strong signal” to investors backing key EU industries, “particularly energy-intensive sectors and clean technologies.”

“It is another step in Europe’s resilience against unfair competition from other continents.”

However China has voiced strong opposition to the Commission proposal, seen in Beijing as restricting its access to EU procurement and investment.

“This legislation is Europe standing firm for its strategic industries,” Grudler said.

“China has overcapacities in cars or in steel. They are relying on the naivety of Europeans to do business, to generate double-digit growth again, and then to invest in research and development and get ahead on everything, all the while cheating through direct subsidies to destroy our industries.”

April 21 (Asia Today) — China has denied entry to South Korea’s intelligence chief and signaled reluctance to improve bilateral relations, amid growing tensions over Seoul’s perceived stance on Taiwan, according to diplomatic sources.

A South Korean delegation led by lawmaker Cho Jung-sik of the Democratic Party of Korea recently visited Beijing and returned Sunday after holding talks on political issues and bilateral relations. The delegation had initially planned to include National Intelligence Service Director Lee Jong-seok.

However, Chinese authorities reportedly refused Lee’s visit, citing remarks in which he suggested that engagement with Taiwan could be used as leverage to encourage China’s cooperation in improving inter-Korean relations.

According to a diplomatic source in Beijing, China reacted strongly to the comments and demanded an explanation through diplomatic channels. The delegation was subsequently restructured to include deputy officials and retired military officers instead of Lee.

Although the visit proceeded, its outcomes were limited. Chinese officials maintained protocol by assigning a vice foreign minister to host the delegation, but expectations for substantive progress were low, sources said.

Beijing is believed to be increasingly dissatisfied with what it views as South Korea’s ambiguous position – publicly supporting the “One China” principle while maintaining a level of engagement with Taiwan.

Tensions have also been fueled by a recent dispute over how Taiwan is officially referenced, in which South Korea appeared to adjust its position following objections from Taipei. Chinese officials reportedly viewed the move as inconsistent and unfavorable.

The strained atmosphere has cast doubt on the possibility of a visit to South Korea this year by Chinese Foreign Minister Wang Yi, which Seoul has sought as part of efforts to stabilize ties.

Analysts say the situation highlights the need for South Korea to carefully manage relations with China while balancing broader regional dynamics.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260421010006584

The humans were left far behind as smartphone maker Honor’s humanoid robot shattered the men’s world record in China.

A humanoid robot competing against flesh-and-blood runners has broken the world record at a Beijing half-marathon, showcasing the rapid technological advancements achieved by Chinese makers.

Spectators lined the roads in Yizhuang in the capital’s south on Sunday to watch the machines and their human rivals race, each group in a separate lane to avoid accidents or collisions.

Some of the robots were highly agile, moving like famous runners such as Usain Bolt, while others had more basic capabilities.

The winning humanoid, equipped with an autonomous navigation system and running for Chinese smartphone maker Honor, completed the roughly 21km (13-mile) course in 50 minutes and 26 seconds, at an average speed of about 25km/h (15.5mph), according to state broadcaster CCTV.

That was far faster than the top human in Sunday’s race, while also surpassing the current men’s world record of 57:20, held by Ugandan runner Jacob Kiplimo.

The result represented spectacular progress from last year, when robot-runners fell repeatedly, and the best took more than two hours and 40 minutes to finish.

The number of humanoid entries jumped from about 20 last year to more than 100, according to organisers, a sign of the sector’s growing popularity.

‘Pretty cool’

Han Chenyu, a 25-year-old student who watched the race from behind a safety barrier, barely had time to take out her phone and snap a picture of the leading robot as it whizzed past.

She told the AFP news agency she was enthusiastic about such leaps in technology and thought the event was “pretty cool”.

But, she added, “as someone who works for a living, I’m a little worried about it sometimes. I feel like technology is advancing so fast that it might start affecting people’s jobs”, particularly with artificial intelligence (AI) growing increasingly sophisticated.

Humanoid robots have become a common sight in China in recent years, in the media as well as in public spaces.

Xie Lei, 41, who watched Sunday’s race with his family, said robots could “become part of our daily lives” within several years, potentially used for “things like housework, elderly companionship or basic caregiving” or “dangerous jobs, even firefighting”.

The humanoid half-marathon aims to encourage innovation and popularise the technologies used in creating and operating such machines.

In a sign of the industry’s strength, investment in robotics and so-called embodied AI amounted to 73.5 billion yuan ($10.8bn) in China in 2025, according to a study by a government agency.

“For thousands of years, humans have been at the top on planet Earth. But now, look at robots. Just in terms of autonomous navigation, at least in this specific sport event, they’re already starting to surpass us,” Xie said.

“On one hand, it does make you feel a little bit sad for humanity. But at the same time, technology, especially in recent years, has given us so much imagination.”

April 16 (Asia Today) — China’s economy grew 5.0% in the first quarter, exceeding expectations despite concerns over the impact of the Iran conflict, official data showed Thursday.

The National Bureau of Statistics said gross domestic product rose 5.0% from a year earlier, topping the 4.8% forecast by economists surveyed by Reuters and Bloomberg.

The stronger-than-expected growth was driven by manufacturing and exports. Industrial production rose 5.7% in March from a year earlier, while retail sales increased just 1.7%, highlighting weak consumer recovery.

High-tech industries showed particularly strong momentum. Output in the sector rose 12.5% in the first quarter, with industrial robot production up 33% and integrated circuit output increasing 24%. Manufacturing accounted for about one-third of overall economic growth.

The impact of the Iran conflict has so far been limited. Bloomberg reported that China’s efforts to bolster energy security, along with prolonged deflationary pressures, helped cushion the shock from rising oil prices. However, some effects were visible, including a 2.2% decline in refined oil production in March.

Domestic demand remains a key concern. Real per capita consumption rose just 2.6%, while wage growth slowed. The urban unemployment rate reached 5.4%, the highest level in a year.

Investment indicators were also weak. Fixed-asset investment increased 1.7% in the first three months of the year, while real estate investment fell 11.2%. Private investment declined for the first time outside the pandemic period.

Analysts said China’s economy continues to show an “imbalanced structure,” with growth driven by exports and manufacturing while domestic demand lags. Falling sales of automobiles, home appliances and furniture further point to soft consumption.

Policy responses are expected to remain measured. With growth exceeding expectations, pressure for large-scale stimulus has eased, and the government has set a relatively modest annual growth target of 4.5% to 5%.

Still, targeted fiscal support and cost-cutting measures are likely to continue to address rising energy prices and external uncertainties. Some economists also see room for monetary easing, including a possible reduction in banks’ reserve requirement ratio.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260416010005290

The smartest thing Trump can do for the United States is to adopt a “cake-sharing” strategy to cope with the arrival of a multipolar era. He wants to ensure that America still gets the largest slice of the cake, with its power base rooted in traditional energy—oil and natural gas.

This aligns well with “Cold War thinking.” From the perspective of oil reserves, the United States plus its friendly Gulf states accounts for about 55%–60% of the global total. If Venezuela—now under U.S. control—is added, the share rises to 72%–77%.

Spreading out the energy map, according to estimates by the U.S. Geological Survey (USGS), Greenland holds approximately 39 billion barrels of oil equivalent (combining East and West Greenland). Cuba has 4–5 billion barrels.

Nigeria, a major oil-producing country in Africa, has 37 billion barrels of oil reserves. The Trump administration has threatened military action against it under the pretext of “persecuting Christians.”

Iran’s oil reserves stand at 2,086 billion barrels, accounting for 13.3% of the global total.

The regions Trump has singled out—Iran, Venezuela, Greenland, Cuba, and Nigeria—clearly show that he is deciding how to “share the cake” with China and Russia based on the traditional energy map.

Although reserves and actual output are two different things, for Trump this is irrelevant. What he puts on the negotiating table is merely a piece of paper for “bidding”—he doesn’t need to worry about minor details.

On the other side of the negotiating table, China’s chips are new energy and critical minerals. In the area of critical minerals, Iran, Venezuela, Greenland, Cuba, and Nigeria all possess rich potential, and all have varying degrees of investment and cooperation ties with China.

One reason Trump scorns “new energy” may be that, within his limited term, competing with China in the new energy field is simply impossible. In the traditional energy domain, however, the United States holds a significant advantage.

Successfully pocketing Venezuela has encouraged Trump to take risks in Iran. Originally, Trump wanted to approach Beijing for a major deal from the position of a traditional energy hegemon, but Iran’s fierce resistance has dampened his ambitions. The United States has been outmaneuvered by Iran, and Trump has postponed his visit to China.

Iranian President Pezeshkian publicly stated: “China is now also seen by the United States as its main enemy; we are just next in line. They want to take us down first, then deal with China.” Behind this statement lies the landscape of U.S.-China competition over energy and critical minerals.

It cannot be said that Trump is unrealistic—this “cake-sharing” strategy has its own rationality. Nor can it be said that Trump has overestimated America’s military strength, because he knows very well that the United States cannot even handle the Houthis, let alone Iran. One can only say that the success of the “decapitation operation” in Venezuela has inflated his sense of luck, and Israel has exploited this psychology to successfully lure Trump into risking involvement in Iran.

The United States and Israel jointly eliminated the appeasement faction in Tehran and greatly underestimated Iran’s counterattack capability. They wanted to control oil but ended up being controlled by Iran on oil export routes. This is a complete strategic failure, and its medium- to long-term damage to the United States far exceeds the energy sector.

We don’t even need to discuss the rise and fall of petrodollars versus petroyuan—just look at the new energy sector. This round of energy crisis has greatly heightened the global urgency for new energy development, and the countries and regions most urgently in need are precisely America’s allies worldwide, including the Gulf states.

America’s allies are mostly developed countries. They have long recognized that China is a superpower in new energy. Before the Iran war, the broader Western camp was developing new energy while trying to reduce dependence on Iran. Now, however, the sense of urgency has pushed these countries to rely even more deeply on China.

These countries and regions include France, Germany, Portugal, Spain, the United Kingdom, and the European Union, as well as India, Japan, South Korea, and Southeast Asian nations such as Vietnam, Thailand, the Philippines, and Indonesia. They are either industrially advanced or rapidly industrializing countries that heavily depend on stable energy supplies.

In the core area of the Iran war—the Gulf states—are also actively accelerating the development of new energy industries, with the solar industry as the key focus. China is the only source capable of providing cheap, high-quality equipment and products. After the war ends, Iran may also exchange oil for the components needed for new energy development with China, achieving economic diversification like the Gulf states and reducing reliance on oil exports.

China’s solar equipment originally suffered from overcapacity; now it stands to gain relief.

What revolves around the core issues of new energy is nothing more than industrial supply chains and critical minerals. In this regard, mainland China’s industrial strength needs no emphasis. In critical minerals, the Democratic Republic of the Congo—China’s deep cooperation partner—will see half of its cobalt mines belong to Chinese enterprises. Given that Congo holds the world’s largest cobalt reserves, China will possess an indisputable “cobalt dominance.” Cobalt is a key mineral for lithium-ion batteries.

In addition, graphite and tantalum are also dominated by China. Tantalum is a critical metal for capacitors, which are essential for stabilizing wind and solar power generation. Graphite is the anode material for lithium-ion batteries and an indispensable mineral for renewable energy storage systems and solar panel production.

Currently, renewable energy plus nuclear power accounts for 40% of global electricity generation, while fossil fuels still account for 60%. However, when looking at the global share of “capacity” (installed capacity) for renewable energy plus nuclear, it has already reached about 55%. Among this, renewable energy accounts for 49.4% and nuclear for about 5%.

“Capacity” refers to installed capacity—in plain terms, the theoretical maximum power generation. The actual global generation share of renewable energy is about 32%. The gap between theoretical and actual values exists because renewable energy generation is less stable than fossil fuels. Adding nuclear’s actual generation share (about 8%), the actual generation share of so-called low-carbon energy reaches 40% globally.

There is no doubt that the oil crisis will inevitably trigger a “green energy surge.” Looking ahead five years, the actual generation share of green energy will exceed 50%. Assuming nuclear can grow to 10% of actual generation and renewables grow by 8%, China’s additional revenue from the global renewable energy business in the next five years could reach the level of hundreds of billions of dollars.

From this perspective, China—which strongly supported green energy development from the very beginning of the climate agenda—did so not so much for carbon reduction as for industrial preparation in the name of energy security. Expanding the global new energy business is merely an added value.

Of course, the key technologies for manufacturing new energy equipment may be even more important than critical minerals. Last November, China imposed export controls on certain lithium batteries, key cathode and anode materials, and their manufacturing equipment and technologies. Given that China controls about 96% of global anode material production capacity and 85% of cathode material capacity, the impact of these export controls is enormous.

On April 15, according to Reuters, China has held preliminary consultations with solar panel production equipment suppliers and is considering restricting exports of the most advanced technologies and equipment to the United States. If true, Beijing is raising the stakes in new energy, waiting for Trump to come to the negotiating table in May.

Admittedly, Trump has no intention of developing new energy. However, considering that the Democrats may return to the White House in three years, Beijing is now blocking America’s path to new energy development, essentially laying the groundwork for U.S.-China competition three years from now.

If Trump’s energy strategy map on the table also included a new energy layer, he should realize that the setback in the Iran war has allowed the new energy domain to encroach upon the traditional energy domain, enabling China to expand its energy power without firing a single shot. As for critical minerals, the United States has made no outstanding progress—at least nothing sufficient for Trump to boast about.

Now, the “cake” being pushed in front of Xi Jinping is getting bigger and bigger. On the surface, Beijing has gained it effortlessly, but today’s harvest is mainly due to strategic 布局 made one step ahead. These layouts are often “low-profit” but highly effective investments, and new energy is merely one of them.

In an uncertain world, those who provide “certainty” win. Therefore, the winner of the Iran war is China—even if Beijing is extremely reluctant to admit it.

China has taken a firm stance against the Israeli escalation in Lebanon, strongly warning against the region becoming a second Gaza and considering the events a blatant violation of Lebanese sovereignty and international law. The most prominent features of the Chinese response up to April 2026 to this Israeli military escalation in southern Lebanon included condemning the targeting of civilians and emphasizing the protection of Lebanese sovereignty while rejecting Israeli violations aimed at destroying the infrastructure of southern Lebanon. The Chinese Foreign Ministry condemned the extensive Israeli raids targeting towns in southern Lebanon, stressing that Lebanon’s sovereignty and security are a red line that must not be crossed. China also emphasized the protection of Lebanese civilians, with Beijing unequivocally affirming that the protection of civilians and civilian objects in armed conflicts is a legal obligation and expressing its shock at the scale of casualties and destruction inflicted on southern villages and towns.

China’s position is based on a comprehensive vision linking the stability of southern Lebanon to a ceasefire in the Gaza Strip. Beijing believes that addressing the root causes of the conflict is the only way to prevent its spread throughout the Middle East. While condemning the destruction of Lebanese infrastructure and civilian areas, China’s Foreign Ministry denounced the Israeli airstrikes that killed hundreds of civilians and destroyed civilian infrastructure and property. Beijing categorically rejects any actions that lead to the destruction of infrastructure, considering them a violation of international law. China has consistently emphasized that Lebanon’s sovereignty, security, and territorial integrity are a red line that must not be crossed. Beijing has also declared its opposition to the Israeli ground incursion into southern Lebanon, warning that such actions exacerbate regional tensions. China has called for diplomatic solutions, urging all parties, especially Israel, to exercise maximum restraint and return to the path of political and diplomatic settlement, asserting that continued violence will not bring security to any party. China condemned the attacks targeting UNIFIL peacekeeping forces in southern Lebanon, stressing the need to ensure the safety of UN peacekeepers.

In this context, China deliberately directed veiled criticism at Washington regarding Israeli violations in southern Lebanon. China believes that the failure to contain the escalation in southern Lebanon is partly due to the military and political support provided to Israel by external powers, a clear reference to the United States, which hinders efforts to de-escalate the situation. Simultaneously, China warned of a second Gaza in southern Lebanon. Chinese Foreign Minister Wang Yi explicitly cautioned against a repeat of the Gaza tragedy in Lebanon, emphasizing that violence cannot replace right and justice. China is pressing in international forums, particularly the Security Council, for an immediate and permanent cessation of Israeli hostilities, warning against the region sliding into a full-scale war. This stance reflects China’s desire to bolster its role as a peacemaker in the Middle East and to rival American influence by adhering to political solutions and international law.

Here, China sharply criticized the American role in the Israeli war against southern Lebanon and its recent escalation in April 2026, arguing that Washington contributes to undermining regional stability through its military and political support for Israel. Beijing considered the military operations supported or participated in by the United States to be a flagrant violation of international law and the principles of national sovereignty. While warning against the militarization of the region, China criticized the expansion of the American military presence, describing it as irresponsible and warning that such steps exacerbate tensions rather than de-escalate them. Beijing believes that Washington’s approach to the international order reflects the values ​​of the law of the jungle and fuels chaos and instability in the Middle East. While criticizing the US for its double standards, China, through its Foreign Ministry spokesperson Mao Ning, condemned the continued Israeli strikes on towns and villages in southern Lebanon despite ongoing efforts to de-escalate the situation. She emphasized that Lebanon’s sovereignty and security must not be violated.

China called on Israel to immediately withdraw from southern Lebanon, warning against a repeat of the Gaza scenario. Chinese President Xi Jinping issued direct warnings demanding the immediate withdrawal of Israeli forces from southern Lebanon, cautioning that continued military operations could lead to a humanitarian catastrophe similar to what occurred in the Gaza Strip. He also called for an end to the Israeli escalation in southern Lebanon. China maintains that violence does not solve problems but rather exacerbates crises, urging maximum restraint to de-escalate the volatile regional situation. Chinese President Xi Jinping called for the immediate withdrawal of Israeli forces from Lebanese territory, asserting that their current military presence violates Lebanon’s sovereignty and territorial integrity. President Xi explicitly warned against allowing southern Lebanon to become another Gaza, pointing to the risk of a widespread humanitarian catastrophe and the destruction of civilian infrastructure.

To halt the cycle of violence and armed conflict in southern Lebanon, Chinese President Xi Jinping proposed a four-point peace initiative to bolster stability in the Middle East. This initiative includes a call for a multilateral peace conference under the auspices of the United Nations, the re-establishment of the border along the Blue Line between southern Lebanon and Israel, and a reaffirmation of China’s rejection of any violation of Lebanese sovereignty. The Chinese Foreign Ministry has repeatedly emphasized, most notably on April 9, 2026, that Lebanon’s sovereignty and security are a (red line) that must not be crossed. These Chinese moves position Beijing as an active diplomatic alternative in the region at a time of escalating international tensions between major powers and ongoing regional conflicts. China has begun diplomatic efforts by proposing several peace initiatives to halt the cycle of armed conflict in southern Lebanon. The most prominent of these is the call for a multilateral peace conference. Beijing proposed hosting an international peace conference aimed at stabilizing the region and reinforcing the border along the Blue Line separating Israel and Lebanon, under the auspices of the United Nations. China holds Israel fully responsible, considering the ongoing fighting in Gaza to be the root cause of the instability in the Middle East. Therefore, China called on the international community, particularly the major powers, to play a constructive role in achieving a comprehensive and lasting ceasefire in southern Lebanon and the Gaza Strip. China has also supported the UNIFIL peacekeeping force in southern Lebanon, strongly condemning any attacks on UNIFIL forces as violations of UN Security Council Resolution 1701. Here, China used its influence in the UN Security Council and international forums to emphasize that any military operations outside the framework of the United Nations violate its Charter. It described the Israeli strikes on towns and villages in southern Lebanon as unauthorized actions.

Based on the preceding analysis, we understand the accuracy of China’s linking of the tensions in southern Lebanon to the war in Gaza. China called for restraint to prevent the conflict from spreading regionally, based on its principles of supporting sovereign states like Lebanon and non-interference in the internal affairs of other countries. China also called for a return to the diplomatic track to halt the cycle of violent armed conflict in southern Lebanon perpetrated by Israel. China condemned the extensive Israeli strikes, stressing that Lebanon’s sovereignty and security must not be violated. It emphasized the need to protect Lebanese civilians and civilian infrastructure during Israeli military operations and called for de-escalation and immediate steps to calm the situation and prevent further escalation of the conflict in southern Lebanon.