Eurasian Economic Union (EAEU) countries are moving towards deeper economic integration through digitisation and AI, as leaders of the bloc met in Astana for a two-day summit.
During the high-level talks, member states discussed creating a unified digital environment to build a seamless market across a shared economic space of more than 20 million square kilometres.
Delegations focused on trade, joint projects and the development of shared digital tools and AI systems designed to strengthen cooperation and reduce fragmentation across the bloc.
Last year, trade within the union more than doubled, while turnover with third countries rose by 72%, while around 90% of settlements are now conducted in national currencies, as EAEU states also mull a single transit system.
With digitisation driving developments across the union, Kazakhstan’s President Kassym-Jomart Tokayev said trade turnover between EAEU members could increase by around 6%, exceeding €85 billion this year, compared with €80 billion last year.
He added that GDP growth across EAEU countries is projected at around 2.5% for 2026–2027.
Now in its 12th year, the EAEU functions as a single integrated market and free trade zone for its five members – Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia.
The bloc already has agreements in place with a number of countries including Serbia, Vietnam, the UAE, Mongolia and Indonesia. China remains the bloc’s key partner, accounting for around one-third of external trade.
Kazakhstan’s Tokayev said that during its chairmanship of the EAEU, the country has proposed the practical use of AI to help implement the bloc’s so-called four freedoms, with the aim of strengthening the competitiveness of member states.
Member states also proposed developing common principles for the responsible use of AI, as well as shared computing capacity and joint model development.
Meanwhile, Russia proposed a high-level AI get-together next year to further cooperation on domestic AI models and connecting its IT and energy infrastructure, according to Russian President Vladimir Putin.
On the ground, pilot projects are already being tested at the EAEU level.
In Kazakhstan, several AI-powered digital assistants have been developed by both government agencies and startups to help citizens navigate legal and regulatory systems more easily.
According to Deputy Minister of Artificial Intelligence and Digital Development Dmitry Mun, these AI legal assistants are designed to simplify legislation, reduce bureaucracy, and make regulatory systems more accessible for citizens and businesses.
Some of these tools are now being tested to streamline processes across member states.
Around 85% of goods travelling from China to Europe are routed through the Middle Corridor, according to officials.
Artificial intelligence is increasingly being deployed alongside the TDN and the Digital Transport Corridor along the Trans-Caspian International Transport Route. Together, these measures are expected to increase non-commodity exports by around 30% over the next two years.
Kazakhstan’s Minister of Trade and Integration Arman Shakkaliyev said the country also aims to leverage major transport routes, including the Middle Corridor and the North–South Corridor, to build a fully integrated logistics ecosystem.
The goal, he said, is to position Kazakhstan as a key regional hub where transport routes converge and large export flows are consolidated.
The ambition is to develop a fully functioning system by 2030, with cargo volumes reaching around 10 million tonnes. Work is already under way, including railway modernisation and new infrastructure development.
The summit followed Putin’s state visit to Kazakhstan, during which the two countries signed seven key pillars of bilateral cooperation, along with a broader package of agreements covering energy, transport, finance, education and industrial development.
Russia remains Kazakhstan’s largest investor, with nearly €25 billion already invested and plans to increase that figure further. It is also building Kazakhstan’s first nuclear power plant, valued at around €14 billion.
Putin said the plant would account for around 20% of Kazakhstan’s electricity consumption, adding that financing conditions for such projects are in line with international practice.
He noted that the project supports Russian industrial capacity through equipment orders and long-term maintenance contracts, while also strengthening cooperation between the two countries in uranium and nuclear technology.
For Kazakhstan, officials say the project represents both energy security and a step towards moving beyond raw-material exports to high-value technological cooperation.
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.
“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 :
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.
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.
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.
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.”
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.”
May 28 (UPI) — The U.S. military attacked Iran, Tehran confirmed early Thursday, as Iran announced retaliatory strikes of its own.
Iran targeted a U.S. air base at about 4:50 a.m. local time in response to the U.S. military striking presumed Iranian military assets near Bandar Abbas Airport in southern Iran.
“This response is a serious warning so that the enemy knows aggression will not go unanswered, and that in the event of a repeat, our response will be more decisive and the responsibility and consequences will lie with the aggressor,” Iran’s Islamic Revolutionary Guard Corps said in a statement carried by Iranian state media.
The air base targeted and whether it sustained damage were not known. The U.S. military has yet to comment.
The announcement came as the Kuwait Army said its air defenses were confronting “hostile missile and drone attacks.” While the United States maintains a significant military presence in Kuwait, it was not immediately clear whether those attacks were related to the U.S.-Iran exchange.
Explosions were heard near Bandar Abbas, Iranian state news agency Tasnim reported earlier Thursday.
Citing an unidentified military source, the news agency said the U.S. attack followed the Iranian Navy firing shots toward a U.S. oil tanker that had turned off its radar system and intended to pass through the Strait of Hormuz.
The oil tanker reportedly ended its attempt to transit the vital energy maritime trade route.
Iran has been enforcing has been restricting access through the Strait of Hormuz since the start of the war, permitting only certain vessels through. The United States responded with a military blockade of Iran’s ports, cutting it off from sea-based trade.
The two sides have been in talks since a fragile cease-fire was agreed to last month, with Thursday’s U.S. strikes on Iran the second time it has attacked the country so far this week.
On Monday, the U.S. military attacked southern Iran, describing the strikes as “self-defensive” in nature.
The Trump administration has repeatedly stated that it intends to secure free navigation of the Strait of Hormuz, one way or another, though it would prefer to do so through diplomacy.
Iran’s control of Hormuz is reportedly one of its conditions in negotiations on ending the war. In response to reports carried by Iranian state media that Iran and Oman, which border either side of the Strait of Hormuz, are in talks over control of the choke point, President Donald Trump said the transit route will be open to all countries and under no government’s control.
“It’s international waters. Nobody’s going to control it. We’re going to watch over it. We’ll watch over it, but nobody’s going to control it. That’s part of the negotiation that we’re having,” he told reporters during a Cabinet meeting on Wednesday.
“And Oman will behave just like everybody else or we’ll have to blow them up. They understand that. They’ll be fine.”
German Trade Minister Katherina Reiche is travelling to China from Tuesday to Friday as Berlin’s trade deficit with Beijing continues to deepen.
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.
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.
Africa’s Payments landscape is undergoing a significant transformation, fueled by advanced technologies and a surge in Cross-Border Trade. With AI and modular financial solutions taking root, African markets are quickly adopting faster, more secure, and seamless Payment experiences. But this shift isn’t just about digitisation—it’s about building a more resilient and inclusive financial ecosystem that empowers both businesses and individuals.
Africa’s Payments ecosystem isn’t a single, uniform market—it’s a complex tapestry of 54 countries, each with unique currencies, regulatory standards, and varying financial infrastructures. For corporates and financial institutions, this diversity presents challenges, but it also creates fertile ground for innovation.
The very intricacies that complicate Cross-Border Payments also encourage creative, technology-driven solutions that are tailored to local needs. This dynamic landscape invites forward-thinking approaches, making Africa a proving ground for Payment innovations with the potential to transform how value moves across the continent and beyond.
Africa’s diverse regulatory landscape demands adaptability in Cross-Border Payments. With each nation enforcing unique licensing, settlement, and risk rules, achieving a unified platform remains a significant challenge. Adding to the complexity is the growing insistence on local data storage to meet data sovereignty requirements, making compliance and technology integration even more intricate.
Instead of allowing regulatory hurdles to impede progress, industry leaders are using these complexities to build more adaptable and resilient systems. They’re advancing modular, “plug-and-play” platforms with strong governance, clear data separation, and flexible hybrid cloud infrastructure. This approach turns obstacles into opportunities for real innovation and growth.
This drive toward modularity has accelerated the adoption of Banking as a Service (BaaS), recasting Payments from a cost center into a strategic growth lever. Where corporates once saw Cross-Border Payment infrastructure as a burdensome expense, BaaS now allows secure, compliant Payment capabilities to be embedded directly into business platforms.
With a single integration, companies can navigate regulatory complexity, unlocking new revenue streams and harnessing Payment data to refine operations, understand customers, and deliver tailored services. Payments have become more than transactions—they’re a source of insight and innovation, fueling growth and competitive advantage.
Artificial Intelligence is transforming Transaction Banking in Africa, acting as a catalyst that enhances human expertise to improve efficiency and transparency. Rather than relying on the traditional first-in, first-out approach, AI now enables financial institutions to sort and route queries by urgency and complexity, streamlining exceptions and prioritising immediate needs. This reduces manual intervention and turnaround times, freeing teams to focus on deeper client relationships and higher-value tasks that improve service quality and satisfaction.
But AI’s impact goes far beyond boosting efficiency—it is transforming security and fraud detection across Africa’s digital Payments. As digital adoption rises, so does financial crime. AI uses real-time, behavior-based analytics to monitor transactions and learn each client’s typical patterns. This allows quick detection of anomalies and proactive fraud prevention, improving accuracy and reducing unnecessary disruptions while safeguarding customer trust.
As financial institutions adopt advanced AI systems, strong governance becomes critical. Without careful oversight, AI models built on limited or skewed data can unintentionally reinforce biases—delaying Payments or impacting service for certain groups. To maintain trust and fairness, banks must ensure they have strong accountability, transparent training of AI models and proactive monitoring so algorithms serve all customers equitably and uphold the highest industry standards.
Intra-African trade is experiencing unprecedented growth. As more businesses look beyond national borders, the demand for fast, accessible, and reliable Payment systems has never been greater. This surge in regional commerce is prompting the development of innovative Payment infrastructures that make Cross-Border transactions more seamless and inclusive.
Moving beyond the confines of Domestic Mobile Money networks, Telecom companies are developing Payment rails to enable real-time Payments that cross African borders with ease. This shift is especially transformative for small and medium-sized enterprises, opening fresh opportunities for growth and Cross-Border collaboration. By promoting interoperability and removing costly intermediaries, these regional networks make Payments faster, more affordable, and increasingly accessible.
As these Telecom-driven platforms continue to expand, they are enabling Africa’s Multi-Rail Payments ecosystem. Their ability to foster resilience, scalability, and efficiency is setting the stage for a future where regional Trade is not just possible, but practical for businesses of all sizes. This wave of innovation is redefining the landscape, ensuring that regional Payment Rails support and propel Africa’s economic growth for years to come.
Africa’s Cross-Border Trade is being reshaped by ongoing US dollar shortages and shifting macroeconomic forces. For import-dependent markets, these scarcities delay settlements, increase transaction costs, and tie up vital working capital. This environment demands new solutions and is pushing businesses to seek more efficient, reliable ways to move value across borders.
Concurrently, the region is experiencing rising Trade flows with Asia, and African businesses are rapidly adopting alternative Payment infrastructures. Platforms like the Cross-Border Interbank Payment System (CIPS) and greater use of the Chinese Renminbi offer new settlement options and critical flexibility. This shift reduces reliance on established networks such as Swift, giving companies more robust and diversified Payment infrastructure. As a result, importers and exporters can count on greater predictability, faster settlements, and lower intermediary costs—ultimately accelerating and scaling Cross-Border Trade across Africa.
Africa’s financial future is emerging as an ecosystem that is intelligent, instant, and seamlessly connected. Thriving in this landscape will require more than just advanced technology. It demands a clear understanding of local realities and global shifts. The leaders will be those who turn Africa’s complexity into intuitive, secure, and streamlined client experiences—setting new standards for growth, resilience, and trust in the continent’s rapidly evolving Payments Sector.
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.
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.
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.
Dilok Klaisataporn
Japan reported a trade surplus of JPY 301.9 billion in April 2026, compared to a deficit of JPY 149.5 billion in April 2025, significantly exceeding expectations for a JPY 29.7 billion deficit.
This surplus is the largest since November, with exports
Indonesian President Prabowo Subianto unveiled ambitious economic growth and fiscal deficit targets for 2027 while promising reforms aimed at restoring investor confidence and strengthening state institutions. The announcement comes after months of market concerns over government spending plans, policy uncertainty, and weakening confidence in Southeast Asia’s largest economy.
Prabowo outlined a growth target of 5.8 percent to 6.5 percent for next year while aiming to lower the fiscal deficit to between 1.8 percent and 2.4 percent of gross domestic product. The government also expects inflation to remain under control and pledged to improve food security and attract greater investment.
Indonesia has faced growing scrutiny from investors and rating agencies this year. Credit rating outlooks were downgraded due to concerns about policymaking credibility, fiscal discipline, and transparency. Market fears intensified after discussions around possible changes to the country’s long standing fiscal deficit ceiling and rising state spending commitments.
Prabowo confirmed plans to establish a new state agency to oversee exports of major commodities including coal, palm oil, and nickel. The government says the move is intended to reduce revenue losses and strengthen national control over natural resources, but investors worry it could disrupt pricing systems and reduce private sector profitability.
Despite increasing state involvement in strategic sectors, Prabowo stressed that Indonesia still welcomes private companies and small businesses as partners in economic development. He called for cooperation between the government and the private sector to achieve long term prosperity.
Indonesia’s latest economic strategy reflects a balancing act between ambitious state led development goals and the need to maintain investor confidence. While the government aims to accelerate growth and strengthen control over key resources, markets remain cautious about rising fiscal risks and unpredictable policy changes.
The proposed commodity export agency could significantly reshape Indonesia’s role in global resource markets because the country is one of the world’s largest exporters of coal and palm oil. However, stronger government intervention may create uncertainty for foreign investors and commodity traders.
At the same time, maintaining fiscal discipline will be critical as Prabowo moves forward with large welfare programmes and economic reforms. The success of his agenda will likely depend on whether the government can reassure markets while delivering growth, stability, and stronger institutional credibility.
With information from Reuters.
Published on •Updated
Diplomats and MEPs reached an agreement late on Tuesday to implement the contentious EU-US agreement, which eliminates duties on most US industrial goods imported into Europe.
The negotiations concluded two weeks after US President Donald Trump threatened to impose 25% tariffs on EU cars if Europeans did not implement the agreement — clinched by Trump and European Commission President Ursula von der Leyen in Turnberry, Scotland, last summer — by 4 July.
The so-called “Turnberry Agreement,” criticised by MEPs as unbalanced, raises US tariffs on EU goods to as much as 15%.
“The EU and the United States share the world’s largest and most integrated economic relationship. Maintaining a stable, predictable and balanced transatlantic partnership is in the interest of both sides,” Cyprus trade Minister Michael Damianos said, adding: “Today, the European Union delivers on its commitments.”
MEPs had kept the deal frozen for several weeks following Trump’s threats over Greenland earlier this year. They also suspended it after the US adopted new tariffs following a Supreme Court ruling that declared illegal the tariffs imposed by the White House since Trump’s return to power.
Demanding clarity from the Americans, EU lawmakers finally agreed to enter into negotiations with the EU Cyprus presidency — representing EU member states — after the Commission assured them that the US would honour its side of the agreement and cap its tariffs at 15%, as agreed.
However, EU-US relations remain fragile and there is concern in Brussels that the US administration could still use tariffs to put political pressure on the EU if the bloc does not comply with the White House’s demands on other issues.
Trump’s threats over EU cars two weeks ago also targeted Germany, whose Chancellor Friedrich Merz has criticised the war in Iran launched by the Americans alongside Israel.
Trump has repeatedly called on European countries to deploy ships to help secure the Strait of Hormuz, a move Europeans have been reluctant to make.
Many disagreements also continue to strain EU–US relations over Ukraine — including the recent US extension of a sanctions waiver allowing purchases of Russian oil — and over NATO, which Trump has repeatedly threatened to leave.
On Tuesday night, MEPs tried to secure the deal by attaching conditions, risking US anger with additional provisions to which Washington had not agreed.
Under the Turnberry Agreement, the EU also committed to investing $600 billion across strategic sectors in the United States through 2028 and to purchasing $750 billion worth of US energy.
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.
list of 4 itemsend of list
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.
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.
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.
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.
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.
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.
Goldman Sachs warns AI-fueled market rally is becoming ‘one big trade’
Source link
Maksymowicz/iStock via Getty Images
China agreed to buy at least $17 billion of U.S. agricultural products over the next three years, according to a White House fact sheet released Sunday following meetings between President Donald Trump and Chinese President Xi Jinping last week.
The
Prime Minister Narendra Modi says his talks with the Dutch PM also focused on expanding cooperation in defence and security.
Published On 17 May 202617 May 2026
India’s Tata Electronics has signed a deal with Dutch technology giant ASML to build a major semiconductor plant in western India, as Prime Minister Narendra Modi visited the Netherlands during his European tour.
The agreement, announced on Saturday, will support the development of Tata’s semiconductor facility in Dholera, Gujarat – Modi’s home state.
list of 4 itemsend of list
ASML, Europe’s largest technology company by market value, manufactures advanced lithography machines used to produce high-end microchips found in products ranging from mobile phones to cars.
The Dutch company said it would help “establish and ramp up” production at the plant by supplying its cutting-edge chipmaking tools.
Tata Electronics plans to invest $11bn in the facility, which is expected to manufacture chips for artificial intelligence, the automotive industry and other sectors.
ASML chief executive Christophe Fouquet said the company saw “many compelling opportunities” in India’s growing semiconductor industry.
“We are committed to establishing long-term partnerships in the region,” Fouquet said in a statement.
The deal comes as India and the Netherlands move to deepen economic ties, with New Delhi seeking foreign technology and investment to boost manufacturing and create jobs.
The European Union has increasingly viewed India – the world’s most populous country and one of its fastest-growing economies – as a key future market.
During his visit, Modi held talks with Dutch Prime Minister Rob Jetten and met King Willem-Alexander.
“My conversations with Prime Minister Rob Jetten were extensive and covered a wide range of topics,” Modi wrote on X.
“One of them was defense and security. I spoke about the possibility of drawing up an action plan for the defense industry as quickly as possible. We can also collaborate in sectors such as space travel, maritime systems, and maritime security.”
Modi also addressed members of the Indian diaspora and is expected to inspect centuries-old Chola copper plates being returned to India by Leiden University.
Indian and Dutch officials are also discussing a more flexible visa arrangement for Indian students and workers in the Netherlands.
Modi will next travel to Sweden for talks with Prime Minister Ulf Kristersson focused on trade, innovation and green technology cooperation. The visit marks his second trip to the country since attending the first India-Nordic summit in 2018.
United States President Donald Trump concluded his final round of discussions with Chinese President Xi Jinping in Beijing while attempting to present the visit as a major economic success. The summit came at a sensitive moment for both countries as tensions over trade, Taiwan, artificial intelligence technology, and the Iran conflict continue to shape relations between the world’s two largest economies.
Trump emphasized trade agreements and commercial cooperation during the visit, hoping to strengthen his political standing ahead of important midterm elections in the United States. China, however, used the occasion to deliver clear warnings regarding Taiwan and to criticize the ongoing Iran conflict, signaling that major strategic disagreements remain unresolved despite the positive diplomatic atmosphere.
During meetings at the Zhongnanhai leadership compound in Beijing, Trump promoted what he described as successful trade negotiations between Washington and Beijing. He stated that both sides had reached agreements that would benefit their economies and help stabilize commercial relations after years of tariff disputes and economic uncertainty.
The United States announced several proposed agreements involving agricultural exports, beef, and energy sales to China. Officials also discussed mechanisms to manage future trade disputes and identified billions of dollars in potential goods trade between the two countries.
One of the most closely watched announcements involved aircraft manufacturer Boeing. Trump claimed China had agreed to purchase 200 Boeing aircraft, marking China’s first major order of American commercial planes in nearly ten years. However, investors reacted negatively because markets had anticipated a significantly larger agreement. Boeing shares declined after the announcement, reflecting disappointment over the scale of the deal.
The summit also failed to produce a breakthrough regarding advanced artificial intelligence technology exports. Expectations had been growing that restrictions on the sale of advanced AI chips from NVIDIA to China might ease, especially after company chief executive Jensen Huang joined the trip. No major agreement emerged on that issue.
While Trump focused publicly on economic achievements, China used the summit to voice frustration over the war involving Iran. Beijing stated that the conflict should never have started and called for diplomatic efforts to restore peace.
The Iran crisis has become a major international concern because of its impact on global energy markets. Rising instability in the Middle East has pushed oil prices upward and increased fears about disruptions to energy supplies traveling through the Strait of Hormuz, one of the world’s most critical shipping routes.
China’s position reflects both economic and strategic interests. Beijing relies heavily on stable energy imports and also views Iran as an important geopolitical partner that can balance American influence in the Middle East. Analysts believe China is unlikely to pressure Tehran aggressively because maintaining strong relations with Iran supports Beijing’s broader strategic goals.
Although Trump stated that he and Xi shared similar views on Iran, Chinese officials avoided publicly endorsing Washington’s approach. This difference highlighted the continuing gap between the two powers on international security issues.
Despite the friendly diplomatic setting, Taiwan emerged as one of the summit’s most serious areas of tension. Xi warned that mishandling the Taiwan issue could lead to conflict, reinforcing Beijing’s longstanding position that the island is part of China.
Taiwan remains one of the most dangerous flashpoints in global politics. China has repeatedly stated that it does not rule out the use of military force to bring Taiwan under its control, while the United States continues to support Taiwan’s defensive capabilities under American law.
American officials maintained that United States policy toward Taiwan had not changed. Secretary of State Marco Rubio emphasized that Washington continues to support regional stability while maintaining its established position on Taiwan.
The issue remains highly sensitive because any military escalation involving Taiwan could severely disrupt global trade, semiconductor production, and international security across the Indo Pacific region.
One of the summit’s most important outcomes may simply be the continuation of the fragile trade truce reached during earlier talks between the two leaders. Previous negotiations had temporarily paused extremely high tariffs and reduced tensions over rare earth mineral exports that are essential for modern technology manufacturing.
However, uncertainty remains about whether the current trade arrangements will continue beyond the end of the year. American officials indicated that no final decision had been made regarding the future of tariff suspensions and broader economic cooperation.
This uncertainty reflects the deeper structural rivalry between the United States and China. While both countries benefit economically from stable trade relations, they remain competitors in technology, military influence, and geopolitical leadership.
Human rights issues also appeared during the summit. Trump reportedly raised the case of Hong Kong media businessman and democracy advocate Jimmy Lai, who was sentenced to prison under Hong Kong’s national security law.
American officials expressed hope that Lai could eventually be released, while China maintained that Hong Kong affairs are internal matters and rejected foreign criticism.
The discussion demonstrated that human rights disputes continue to complicate relations between Washington and Beijing even during periods of economic cooperation.
The Trump Xi summit demonstrated the increasingly complex nature of United States China relations. Both sides attempted to project stability and cooperation, particularly on trade and economic matters, yet major disagreements remained visible beneath the surface.
Trump sought to frame the visit as proof of economic leadership and diplomatic success. However, the relatively modest scale of announced agreements and the lack of major breakthroughs on technology exports limited market enthusiasm.
China, meanwhile, used the summit to reinforce its strategic priorities. Beijing signaled that Taiwan remains a non negotiable issue, defended its relationship with Iran, and resisted external pressure on human rights matters.
The summit ultimately reflected a broader reality in global politics. The United States and China are deeply interconnected economically, but they are also strategic rivals competing for influence across multiple regions and industries. Cooperation may continue in trade and commerce, but tensions over security, technology, and global power are unlikely to disappear soon.
With information from Reuters.
Before arriving for his high-stakes summit with Chinese leader Xi Jinping, United States President Donald Trump aimed to set expectations high.
He said he would urge Xi to “open up” China’s economy and announced a delegation of top business executives, including Tesla’s Elon Musk, Apple’s Tim Cook and Nvidia’s Jensen Huang, to accompany him.
list of 4 itemsend of list
As Trump and Xi prepare to wrap up two days of meetings on Friday, the expectations for their summit’s outcome among observers generally are modest at best.
While Trump and Xi are anticipated to extend the one-year pause in their trade war agreed to in South Korea in October, the expectations are for a stabilisation – not revitalisation – in ties between the world’s two largest economies, which are locked in a rivalry that spans everything from trade and artificial intelligence to the status of Taiwan.
“It is important to be clear-eyed about the state of relations here,” Claire E Reade, a senior counsel at Arnold & Porter who previously worked on China at the Office of the US Trade Representative (USTR), told Al Jazeera.
“China does not trust the US, and China wants to beat the US in what it sees as long-term global competition,” Reade said.
“This limits what can be agreed.”
While Trump and Xi have yet to announce the final contours of any trade agreement, the US side has flagged various business deals in the pipeline.
In a pre-recorded interview with Fox News that aired on Thursday, Trump said that China would invest “hundreds of billions of dollars” in companies run by the CEOs in his delegation, without providing further details.
Trump also said that Beijing had agreed to purchase US oil and 200 Boeing aircraft.
Trump administration officials have said that the sides are also discussing the establishment of a “Board of Investment” to manage investments between the countries.
“A realistic ‘opening up’ of the Chinese market would likely focus first on sectors where the economic complementarity is most obvious,” Taiyi Sun, an associate professor of political science at Christopher Newport University in Newport News, Virginia, told Al Jazeera.
“Agricultural goods such as soybeans and beef, as well as high-value-added manufacturing products like Boeing aircraft, are natural areas for expansion because they match existing Chinese demand with American export strengths.”
Sun said a “gradual” opening for US firms in sectors such as financial services could also be possible.
“But those areas are politically and institutionally more sensitive inside China, so progress would likely be incremental rather than immediate,” he said.
Gabriel Wildau, a senior vice president at global business advisory firm Teneo, said both sides will be seeking to address supply-chain vulnerabilities exposed by their trade war.
“The Iran war has likely increased the US’s vulnerability to export controls on rare earths, given the need to rebuild the munition stocks depleted in that war,” Wildau told Al Jazeera.
“Washington will therefore be willing to offer tariff relief – or at least assurances not to impose new tariffs – in exchange for Beijing’s commitment to keep rare earth exports flowing.”
While Trump and Xi agreed to roll back some trade barriers at their summit in South Korea, US-Chinese business and trade remain severely constrained after a decade of tit-for-tat economic salvoes between the sides.
The average US tariff on Chinese goods stood at 47.5 percent after the South Korea summit, up from 3.1 percent before Trump’s first term, according to the Peterson Institute for International Economics.
China’s average tariff on US goods stood at 31.9 percent, up from 8.4 percent in 2018, according to the think tank.
Two-way goods trade amounted to about $415bn in 2025, down sharply from its 2022 peak of $690bn.
Carsten Holz, an expert on the Chinese economy at the Hong Kong University of Science and Technology, said China has less incentive to make concessions to the US than before, amid the rise of its domestic industries.
“Across many industrial sectors, PRC [People’s Republic of China] firms hold leading or controlling positions,” Holz told Al Jazeera.
“As a result, the PRC economy has little to gain from opening further to the US and is likely to only offer largely symbolic gestures.”
Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore, voiced similar sentiments about the limits of US leverage.
“Basically, Trump expects China to buy more stuff from America and let US companies operate more freely in China,” Elms told Al Jazeera.
“What is he offering?” Elms said. “Very little, largely because Trump sees the bilateral relationship as one where the US has been fair and China has not.”
Reade, the former USTR official, said Xi would not agree to any measures that “harm Chinese interests in any way.”
“Instead, China will potentially give the US no-cost ‘gifts,’” Reade said, suggesting such measures could include the removal of trade barriers it placed on US beef.
“It may buy US goods it needs,” Reade said.
“If it allows purchases of US tech products, it will only be because it needs them right now,” she added, “But this does not interfere with China’s strategic plans to eliminate dependence on US technology over the longer term.”
As Trump meets Xi in Beijing for the first time in nine years, can trade war, Taiwan and Iran tensions be contained?
US President Donald Trump returns to Beijing after nine years to meet Chinese President Xi Jinping. The trade war, conflict in Iran, and rising fears over Taiwan shape the talks. With global tensions mounting, can the two leaders find common ground, or will rivalry push the world further into crisis?
In this episode:
Episode credits:
This episode was produced by Marcos Bartolomé and Sarí el-Khalili with Spencer Cline, Catherine Nouhan, Tuleen Barakat, Alexandra Locke, and our guest host, Kevin Hirten. It was edited by Tamara Khandaker.
Our sound designer is Alex Roldan. Our video editors are Hisham Abu Salah and Mohannad al-Melhem. Alexandra Locke is The Take’s executive producer.
Connect with us:
Published On 14 May 202614 May 2026
Share
BEIJING — President Trump arrived in Beijing on Wednesday for his hotly anticipated talks with Chinese President Xi Jinping on the Iran war, trade and U.S. arms sales to Taiwan.
The meat of the summit doesn’t start until Thursday, when the leaders hold bilateral talks, visit the Temple of Heaven, where Chinese emperors once prayed for bumper crops, and take part in a formal banquet. But the Chinese offered Trump a pomp-filled welcome, literally rolling out the red carpet for him after Air Force One landed in the Chinese capital.
The president was greeted by Chinese Vice President Han Zheng; Xie Feng, China’s ambassador to Washington; Ma Zhaoxu, executive vice minister of foreign affairs; and the U.S. envoy to Beijing, David Perdue.
The welcoming ceremony included a military honor guard, a military band and some 300 Chinese youths waving Chinese and American flags and chanting, “Welcome, welcome! Warm welcome!” as Trump made his way to his waiting limousine. The youth greeters were decked out in white and robin’s egg blue outfits that matched the paint job of the iconic presidential plane.
President Trump walks with China’s Vice President Han Zheng during an arrival ceremony Wednesday at Beijing Capital International Airport, as Eric and Lara Trump, Elon Musk, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and U.S. Trade Representative Jamieson Greer follow.
(Mark Schiefelbein / Associated Press)
“We’re the two superpowers,” Trump told reporters as he departed the White House on Tuesday for the long flight to Beijing. “We’re the strongest nation on Earth in terms of military. China’s considered second.”
While Trump likes to project a sense of strength, the visit occurs at a delicate moment for his presidency as his popularity at home has been weighed down by the U.S. and Israel’s war with Iran and rising inflation as a consequence of that conflict. The Republican president is seeking a win by signing deals with China to buy more American soybeans, beef and aircraft, saying he’ll be talking with Xi about trade “more than anything else.”
The Trump administration hopes to begin establishing a Board of Trade with China to address differences between the countries. The board could help prevent the trade war ignited last year after Trump’s tariff hikes, an action China countered through its control of rare earth minerals. That led to a one-year truce last October.
But Trump is visiting Beijing when Iran continues to dominate his domestic agenda. The war has led to the effective closure of the Strait of Hormuz, stranding oil and natural gas tankers and causing energy prices to spike to levels that could sabotage global economic growth. The U.S. president declared that Xi didn’t need to assist in resolving the conflict, even though Iran’s Foreign Minister Abbas Araghchi was in Beijing last week.
Fellow rescuers carry the coffins of two members of the civil defense who were reportedly killed in Israeli airstrikes in Nabatieh the previous day, during their funeral in the southern city of Sidon on May 13, 2026. Israel hammered south Lebanon with strikes on May 12 ahead of talks between the two countries in Washington, as Beirut reported 380 people killed in Israeli attacks since an April 17 ceasefire took effect.
(Mahmoud Zayyat/AFP via Getty Images)
“We have a lot of things to discuss. I wouldn’t say Iran is one of them, to be honest with you, because we have Iran very much under control,” Trump told reporters Tuesday.
The status of Taiwan also will be a major topic as China is displeased with U.S. plans to sell weapons to the self-governing island, which the Chinese government claims as part of its own territory.
Trump told reporters on Monday that he would be discussing with Xi an $11 billion weapons package for Taiwan that the U.S. administration authorized in December but has not yet begun fulfilling. The arms package is the largest ever approved for Taiwan.
But Trump has demonstrated greater ambivalence toward Taiwan, an approach that’s raising questions about whether the U.S. leader could be open to dialing back support for the island democracy.
The Taiwanese flag at Democracy Boulevard is lowered at the end of the day as the Chiang Kai-shek Memorial Hall is seen in the background in Taipei on May 13, 2026.
(I-Hwa Cheng/AFP via Getty Images)
At the same time, Taiwan — as the world’s leading chipmaker — has become essential for the development of artificial intelligence, with the U.S. importing more goods so far this year from Taiwan than China. Trump has sought to use Biden-era programs and his own deals to bring more chipmaking to America.
The Chinese Communist Party’s news outlet, People’s Daily, published a strongly worded editorial ahead of Trump’s arrival underscoring that Taiwan is “the first red line that cannot be crossed in China-U.S. relations” and is “the biggest point of risk” between the two nations.
Trump was already portraying the trip as a success before he even left White House grounds. He openly mused about Xi’s planned reciprocal visit to the U.S. later this year, lamenting that the White House ballroom under construction would not be completed in time to properly fete the Chinese leader.
“We’re going to have a great relationship for many, many decades to come,” Trump said of the U.S. and China.
Counter snipers and other security forces watch over Air Force One while refueling at Joint Base Elmendorf during a trip with US President Donald J. Trump in Anchorage, Alaska, on May 12, 2026. Donald Trump was due in Beijing on May 13, 2026 on the first visit to China by a US president in nearly a decade, as he seeks to ramp up trade despite potential friction over Taiwan and Iran.
(Brendan Smialowski/AFP via Getty Images)
Trump embarked on Air Force One for the big meeting with a coterie of aides, family members and business world titans, including Nvidia’s Jensen Huang and Tesla and SpaceX’s Elon Musk. While en route to Beijing, he posted on social media that his “first request” to Xi during the visit will be to ask the Chinese leader to bolster the presence of U.S. firms in China.
“I will be asking President Xi, a Leader of extraordinary distinction, to ‘open up’ China so that these brilliant people can work their magic, and help bring the People’s Republic to an even higher level!” Trump wrote.
Tajikistan’s President Emomali Rahmon and China’s President Xi Jinping attend a welcoming ceremony at the Great Hall of the People on Tuesday, in Beijing.
(Maxim Shemetov—Pool / Getty Images)
Despite Trump’s outward confidence, China appears to be entering the meeting from “a much stronger place,” said Scott Kennedy, a senior adviser on Chinese business and economics at the Center for Strategic and International Studies, a Washington think tank.
China would like to reduce tech restrictions on accessing computer chips and find ways to reduce tariffs, among other goals.
“But even if they don’t get much on any of those things, as long as there’s not a blow-up in the meeting and President Trump doesn’t go away and look to re-escalate, China basically comes out stronger,” Kennedy said.
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met on Wednesday to discuss economic and trade issues at Incheon International Airport, just west of the South Korean capital of Seoul, according to the Chinese state run Xinhua News Agency.
Bystanders are kept back by police tape as they film the motorcade of President Donald Trump as he arrives at the Four Seasons Hotel on Wednesday in Beijing.
(Kevin Frayer / Getty Images)
Trump also intends to raise the idea of the U.S., China and Russia signing a pact that would set limits on the nuclear weapons each nation keeps in its arsenal, according to a senior Trump administration official who briefed reporters ahead of the trip. The official spoke on the condition of anonymity under ground rules set by the White House.
China has previously been cool to entering such a pact. Beijing’s arsenal, according to Pentagon estimates, exceeds more than 600 operational nuclear warheads and is far from parity with the U.S. and Russia, which each are estimated to have more than 5,000 nuclear warheads.
The last nuclear arms pact, known as the New START treaty, between Russia and the United States expired in February, removing any caps on the two largest atomic arsenals for the first time in more than a half-century. As the treaty was set to expire, Trump rejected a call by Russia to extend the two-country deal for another year and called for “a new, improved, and modernized” deal that includes China.
The Pentagon estimates China will have more than 1,000 operational nuclear warheads by 2030.
Madhani, Weissert and Boak write for the Associated Press. Boak reported from Washington. AP writers Darlene Superville in Washington, Huizhong Wu in Bangkok, Hyung-jin Kim in Seoul, South Korea, and Kanis Leung in Hong Kong contributed to this report.
Legal defeats at home leave the White House with dwindling leverage as trade talks begin in Beijing.
President Donald Trump heads into this week’s summit with Chinese President Xi Jinping with a major embarrassment back home: the legal foundation of his aggressive tariff strategy is rapidly eroding.
Trump expects to meet Xi in Beijing from May 14 to May 15 to discuss trade, the war in Iran and, possibly, Taiwan. But the meeting comes as federal courts rule against Trump’s sweeping tariff measures, including the 10% global duties and triple-digit levies on Chinese goods that the White House once promoted as a key source of leverage over Beijing.
The rulings, the most recent of which was on May 7, weaken one of Trump’s most aggressive economic weapons just as Washington, D.C., tries to navigate an increasingly fragile geopolitical landscape.
Trump has refused to concede defeat. In March, he defended the tariffs on his social platform, Truth Social. He argued that Section 122 of the Trade Act of 1974 “fully allowed” and “legally tested” the levies. Trump is the first president to invoke Section 122.
Now, his administration is looking to Section 301 of U.S. trade law as a potential path to impose tariffs with fewer legal vulnerabilities.
Section 301 is a provision of the Trade Act of 1974 that empowers the U.S. president to impose tariffs or other penalties on countries accused of unfair trade practices.
But analysts warn that the strategy may also face significant legal and procedural obstacles — worse than Section 122.
“Section 301 tariffs involve a more cumbersome investigatory process before they can be imposed. That is why Trump has preferred other statutes such as [The International Emergency Economic Powers Act] and Section 122, which he attempted to implement by simple executive order,” said Phillip Magness, senior fellow at the Independent Institute.
With Section 122 of IEEPA, the Trump administration sought to revive a long-dormant statutory provision and reinterpret Congress’s definition of “balance of payments” to justify using it against modern trade deficits. If Trump pivots to Section 301 as his next option, his powers are more restricted and must meet more onerous regulatory requirements.
Magness expects this will potentially trigger another wave of lawsuits.
“Trump will attempt to stretch the language of Section 301 as well, in which case there will probably be court challenges to some of his weaker Section 301 findings,” Magness said.
Since April of last year, hundreds of companies have challenged the tariffs in court, including Costco Wholesale Corp., Prada SpA, Staples Inc. and Bumble Bee Foods, along with foreign firms such as BYD Co., Kawasaki Motors and Yokohama Rubber Co.
The summit also unfolds against a dramatically altered geopolitical backdrop from the leaders’ last meeting in South Korea in October, when both sides agreed to temporarily pause an escalating trade war after China threatened restrictions on rare earth exports.
Since then, Trump has become increasingly consumed by the conflict with Iran — one of China’s closest Middle Eastern allies — a war that has contributed to a global energy crunch and redirected U.S. military resources away from Asia.
The conflict has also strained U.S. munitions stockpiles, fueling speculation among some Chinese analysts about Washington’s ability to defend Taiwan in a prolonged regional confrontation, according to reports from The New York Times.
The European Council says the move ‘sends a clear political signal of the EU’s commitment to re-engage with Syria and support its economic recovery’.
Published On 11 May 202611 May 2026
The European Council has terminated the partial suspension of a cooperation agreement with Syria, thereby restoring fuller trade ties with the country as it seeks to emerge from nearly 14 years of war.
The council said on Monday the move marked an important step towards strengthening relations between the European Union and Syria.
list of 4 itemsend of list
The decision “sends a clear political signal of the EU’s commitment to re-engage with Syria and support its economic recovery”, the European Council added in a statement.
At the same time, the EU’s foreign ministers met in Brussels with top Syrian diplomat Asaad al-Shaibani, kicking off a high-level political dialogue 18 months after the removal of Syrian strongman Bashar al-Assad.
The 27-nation bloc has launched a new chapter with Syria after al-Assad was swept from power in December 2024.
European Commission chief Ursula von der Leyen promised after meeting interim Syrian President Ahmed al-Sharaa in Damascus in January that Europe would “do everything it can” to support Syria’s recovery.
The commission proposed that EU states fully reactivate the bloc’s cooperation agreement with Syria last month.
The deal, which abolished duties on imports of most industrial products from Syria, was partially suspended in 2011 when al-Assad’s regime cracked down on antigovernment protests at the start of a civil war.
Syria-EU trade had peaked in 2010 at more than 7 billion euros ($9.1bn at the 2010 exchange rate).
By 2023, EU imports from the country had dwindled to 103 million euros ($120m) while European exports to Syria stood at 265 million euros ($310m).
On the sensitive matter of Syrian refugee returns, Germany, home to the EU’s largest Syrian community at more than a million people, is on the front line.
Chancellor Friedrich Merz has embraced tougher migration policies as he seeks to counter the far right, and he triggered a backlash by declaring during a visit by Syria’s president last month that he hoped 80 percent of Syrian refugees would return home within three years.
He later clarified this was a figure put forward by al-Sharaa himself.
Pope Leo has called on global leaders to reduce international tensions and turn away from violence, delivering an emotional appeal during a visit to Pompei, Italy, on Friday. His remarks came just one day after he met U.S. Secretary of State Marco Rubio at the Vatican, where both sides discussed efforts to improve strained relations between Washington and the Holy See.
The meeting took place against a politically sensitive backdrop, with U.S. President Donald Trump having recently criticized the Pope over his comments on the Iran conflict. Pope Leo, the first U.S.-born pontiff and former Cardinal Robert Prevost, has increasingly spoken out on global conflicts in recent weeks after initially maintaining a relatively low public profile following his election in May 2025.
Speaking to worshippers in Pompei, the Pope urged prayers that world leaders would be inspired to “calm rancour and fratricidal hatreds” and to take responsibility for reducing global violence. He also warned against becoming desensitized to images of war, and criticized what he described as an international system that often prioritizes the arms trade over human life.
The Pope’s intervention highlights the growing moral and diplomatic role of the Vatican at a time of heightened global instability, particularly amid ongoing tensions involving Iran, the United States, and wider geopolitical rivalries. His criticism of the global arms economy directly challenges dominant security-driven foreign policy approaches, especially in Western capitals.
As the spiritual leader of more than 1.4 billion Catholics worldwide, Pope Leo’s statements carry significant symbolic and diplomatic weight. His increasingly vocal stance on war and governance also places him in a rare position of open tension with major political actors, including the U.S. administration.
The Vatican is expected to continue engaging diplomatically with U.S. officials despite emerging tensions, particularly following the Rubio meeting. Pope Leo is likely to maintain his public messaging on peace, conflict prevention, and criticism of the global arms trade, reinforcing the Holy See’s traditional role as a moral voice in international affairs. At the same time, reactions from Washington and other governments may further shape the evolving tone of Vatican–state relations in the coming months.
With information from Reuters.
Warring sides accuse each other of violations as attacks continue across front lines.
Published On 8 May 20268 May 2026
Russia and Ukraine have accused each other of breaching a short ceasefire announced by Moscow to coincide with Victory Day commemorations marking the Soviet Union’s defeat of Nazi Germany.
The Kremlin said its forces downed 264 Ukrainian drones early on Friday, with officials in Moscow reporting attempted attacks on the capital and in the Perm region in the Ural Mountains.
list of 3 itemsend of list
The truce, declared from May 8 to May 10, was intended to cover annual celebrations that include a military parade in Moscow.
Russia had warned that any disruption would trigger a large-scale missile response against Kyiv, urging foreign diplomats to leave the Ukrainian capital before potential escalation.
In a separate announcement, the Russian transport ministry said on Friday that 13 airports in Russia’s south halted operations due to drone attacks.
“Operations at the regional centre in Rostov-on-Don, which manages air traffic in southern Russia, have been temporarily suspended after Ukrainian drone struck the administrative building of the ‘Southern Russia Air Navigation’ branch,” the ministry said.
There were no casualties, it added.
Victory Day commemorations mark the Soviet Union’s loss of 27 million people in World War II, as it drove Nazi forces back to Berlin, where Adolf Hitler died, and the Red Army’s Soviet Victory Banner was raised over the Reichstag in May 1945.
Ukrainian President Volodymyr Zelenskyy said Russian forces continued to attack positions overnight, dismissing the ceasefire as ineffective.
He said Russia had carried out more than 140 attacks on front-line positions by early morning, alongside 10 assaults and more than 850 drone attacks.
“As we did over the past 24 hours, Ukraine will respond in kind today as well. We will defend our positions and people’s lives,” Zelenskyy said.
Ukraine also reported striking a Russian oil facility in Yaroslavl, deep inside Russian territory, in what Kyiv described as retaliation for attacks on its cities.
“Ukraine’s long-range sanctions continued in response to Russian strikes on our cities and villages,” Zelenskyy said.
Kyiv had proposed an open-ended ceasefire beginning on May 6, which it said Russia ignored. Moscow did not adopt that proposal, and neither side accepted the other’s terms.
In remarks before the truce, Zelenskyy criticised Russia’s approach to the commemorations, saying Moscow sought a pause “to hold their parade, to go out onto the square safely for an hour once a year, and then continue killing, killing our people and waging war”.
“The Russians are already talking about strikes after May 9. Strange and certainly inappropriate of the Russian leadership,” he added.
“Just as 81 years ago, so now America can help peace with a just and strong stance against the aggressor,” Zelenskyy said. “And it is important that the American people now view Russia precisely in this way – as an aggressor.”