Beijing retaliates against Trump's "Liberation Day" tariffs
As the U.S. continues to decouple from allies and rivals alike, Beijing is working to strengthen ties with regional players
Welcome back to What’s Happening in China, your weekly China brief.
Trump’s “Liberation Day” came and went—and with it, a global quilt of tariffs that may very well have been the product of an AI hallucination.
On Wednesday, Washington announced it would impose 34% tariffs on PRC imports, on top of existing duties, pushing the average tariff rate above 70%. In response, Beijing fired back Friday with matching 34% tariffs on all U.S. imports, effective April 10. It also added 11 U.S. firms to its unreliable entity list (a designation that can restrict companies’ trade, investment, and other commercial activities in the PRC), imposed export controls on rare earth elements, and banned exports of dual-use items (products with both civilian and military applications) to 16 U.S. entities—among other measures.
Trump lashed out on Truth Social: “CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!”
If Xi’s visit to the U.S. seemed unlikely before, it now looks entirely off the table—despite Trump claiming in mid-March that it might happen “in the not-too-distant future.”
Meanwhile, as Trump’s “America First” strategy continues to decouple the U.S. from allies and rivals alike, Beijing is working to strengthen ties with regional players. On Sunday, the PRC, Japan, and South Korea held their first economic dialogue in five years and agreed to hold high-level talks on a free trade agreement.
On Monday, Beijing’s ambassador to New Delhi signaled openness to importing more Indian products. The next day, Xi told his Indian counterpart the two sides should deepen cooperation. Xi is also set to embark on a Southeast Asian tour this month, with stops in Vietnam, Malaysia, and Cambodia.
Let’s jump into it.
— PC
Through the Lens
In Focus
I. PRC retaliates against Trump’s ‘reciprocal’ tariffs
China’s Finance Ministry on Friday said it will impose a 34% tariff on all goods imported from the U.S. starting on April 10, following duties imposed by U.S. President Donald Trump’s administration earlier this week.
“China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner,” the ministry said, according to a Google translation.
It further criticized Washington’s decision to impose 34% of additional reciprocal levies on China — bringing total U.S. tariffs against the country to 54% — as “inconsistent with international trade rules” and “seriously” undermining Chinese interests, as well as endangering “global economic development and the stability of the production and supply chain,” according to a Google-translated report from Chinese state news outlet Xinhua.
Separately, China also added 11 U.S. firms to the “unreliable entities list” that the Beijing administration says have violated market rules or contractual commitments. China’s Ministry of Commerce also added 16 U.S. entities to its export control list and said it would implement export controls on seven types of rare earth-related items, including samarium, gadolinium and terbium.
Read: China to impose 34% retaliatory tariff on all goods imported from the U.S. (CNBC)
Related:
China says market has spoken after Trump tariffs spark stocks rout (CNBC)
China and the Impact of “Liberation Day” Tariffs (Center for Strategic and International Studies)
China Restricts Companies From Investing in US as Tensions Rise (Yahoo Finance)
De minimis trade loophole to end May 2, White House says (CNBC)
How Trump’s trade war will break global medicine supply chains (The BMJ)
For Chinese auto part suppliers, Americans are picking up the tab for Trump's tariffs (NBC News)
II. U.S. and PRC military officials hold “candid and constructive exchanges”
U.S. and Chinese military officials have met for their first working-level talks since President Donald Trump took office for the second time, with the two sides sharing their respective concerns over military safety on the seas.
The U.S. Indo-Pacific Command said in a statement that the talks, held Wednesday and Thursday in the eastern Chinese city of Shanghai, were focused on “decreasing the incidences of unsafe and unprofessional” actions by China's naval and air forces.
The Chinese defense ministry said it pointed out that U.S. military ships and aircraft have been conducting “reconnaissance, surveys and high-intensity drills in the sea and air spaces around China, which are prone to cause misunderstandings and miscalculations and jeopardize China's sovereignty and military security."
China told the U.S. that it would continue to “respond to all dangerous provocative actions” and “resolutely safeguard national territorial sovereignty and maritime rights and interests," the ministry statement said.
Read: US, Chinese military officials hold talks on maritime security in bid to lower risks (ABC News)
Related:
What’s in a name? China tests Trump’s resolve on Taiwan (Lowy Institute)
Joseph Wu in U.S. for 'secret talks' via special channel: Report (Focus Taiwan)
III. Perry Link: “Somewhere in the world, 17 others were on the same blacklist as I.”
People ask if being blacklisted ever makes me regret my choice to spend my life studying China, the country that bars me. Do I feel at some level betrayed? Oddly, perhaps, I have never felt that way in the slightest. I am so distant from that feeling that I almost cannot understand it. Most obviously, this is because I have never thought of the people who have blacklisted me as representing China. They are only one small (and especially ugly) part of a much larger and more various entity. Do farmers in Guizhou view me as persona non grata? Miners in Anhui? I can’t imagine it. Even the list-makers’ minions — the young policemen who detained me at the Beijing airport or the hapless Mr. Zhou in the Chinese embassy in Washington — are different from the list-makers themselves. Would these people have barred me, if it had been up to them? I doubt it, but they are “China” just as much as the men they work for.
China is history, language, fiction, poetry, food, humor, scenery — and on and on. My wife and most of my best friends in this world are Chinese. The harm that the blacklist-makers have done to them, and to countless others whose fates I have been able to observe, directly or through writing, makes the harm done to me about as heavy as garlic skin. Without, of course, intending to, leaders of the CCP have given me deeper understanding of certain human values — truth, freedom, integrity — than, perhaps, I could have reached in a world lacking the CCP.
There are two main reasons why I wish I were not on a blacklist. One is that I miss China’s life on the ground: the sounds, sights, and smells of the streets, the charming snacks that can be had there, and the lively, authentic speech. My 2013 book, An Anatomy of Chinese: Rhythm, Metaphor, Politics (Harvard University Press) is about contemporary Chinese language and draws examples not only from published writing but also from T-shirts, graffiti, slang, jokes, and other ephemera that I could collect easily during times I spent in China but since then can gather only second hand. I also miss face-to-face encounters with writers, scholars, activists, booksellers, and people on the street. But such losses are not as severe as one might fear. I can meet people when they come out of China, and, thanks to email and the internet, can stay in touch intellectually without much difficulty.
Read: Life On a Blacklist (China Books Review)
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Politics & Society
Xi abruptly swops jobs of two Politburo members: Report (The Straits Times)
The ruling Communist Party of China (CPC) has abruptly switched the roles of two Politburo members, according to the South China Morning Post (SCMP), an unprecedented move that comes as Mr Xi Jinping breaks personnel norms in his third term.
Mr Li Ganjie, who heads the body in charge of senior job appointments, has swopped position with Mr Shi Taifeng, who leads the party’s United Front Work Department, the newspaper reported, citing unidentified people familiar with the situation.
There is no previous case of Politburo members swopping posts, the SCMP reported.
[…]
Shuffling jobs could be a way for China’s top leader to prevent senior cadres from becoming overly influential and building cliques.
Understanding China's military: A Q&A with new Brookings expert John Culver (Brookings)
Jonathan A. Czin: The PLA of course gets a lot more attention nowadays than in previous years. What do outside observers get right about the PLA? What do you think they miss or get wrong?
John Culver: There’s an inherent bias among many Western analysts to imprint the Cold War onto the present, especially the assumption that material readiness for combat is the main driver of China’s willingness to go to war, over Taiwan, for example. This drumbeat in Western media is useful to drive ever-increasing defense procurement requests but overlooks strong indicators that Xi does not trust the PLA and would not bet his regime on its ability to deter or defeat the United States in a war. For Xi, Taiwan remains a crisis to be avoided, not an opportunity he wants to seize.
Flower Power: Spring Spurs Tomb-sweeping Day Travel Boom (Sixth Tone)
With summer just around the corner, Chinese travelers are flocking to parks, mountains, and flower festivals during the tomb-sweeping day holiday.
The three-day break, traditionally a time to honor ancestors, has also become a prime occasion for spring outings, with tourism platforms reporting spikes in short-distance travel, nature-themed activities, and flower-viewing tours.
According to a report by travel giant Trip.com, bookings for flower-viewing tours have surged 55% year on year, with seasonal activities like mountain climbing and nature walks also reporting stronger growth. On online travel platform Tongcheng, searches for terms like “spring outing” and “flower viewing” have jumped 46% compared to last year.
Young, Tired, and Still Trying: China’s Next Generation Rethinks Success (Sixth Tone)
Is your life better than that of your parents’ generation?
For all the frustrations young Chinese face in the workplace and at home, many would still answer in the affirmative, says Peter Hessler, the well-known author of “River Town” and “Oracle Bones.” Hessler, who has spent most of the past three decades chronicling the changing lives of Chinese across the world, still sees the younger generation as fundamentally optimistic about the future.
But for Xiang Biao, a popular anthropologist and the director of the Max Planck Institute for Social Anthropology in Germany, whose analyses of societal phenomena like “involution” and “lying flat” have been read by millions, the answer is less revealing than the thought process: He sees young Chinese as increasingly self-reflecting and willing to interrogate what words like “better” mean in the context of their lives.
This month, Hessler and Xiang sat down with Sixth Tone for a roundtable discussion on generational differences in China, the mental worlds of young Chinese, and the impact of new technologies on life and work. The following transcript has been edited for length and clarity.
China’s complex social credit system evolves with 23 new guidelines from Beijing (SCMP)
Compared with traditional financial creditworthiness, the concept of social credit encompasses a much broader scope, covering not only individuals and companies but also government agencies and judicial administration, said Zhao Zhanling, a partner with Beijing Javy Law Firm.
“The system is designed to improve the overall creditworthiness of society by enforcing reward and punishment mechanisms based on credit records,” he noted.
To an extent, China’s social credit system is similar to the US’ credit scoring system, with the use of credit information dictating access to services and opportunities, but China’s system is more comprehensive – at least in theory.
The range of included data in China’s system extends beyond financial records to encompass various types of misconduct, including violations of laws, Zhao said.
To better serve a unified national market, the guidelines pledge to build a social credit system covering all types of entities, while improving the credit disclosure of state-owned enterprises on the condition that the information’s security is ensured.
Governments will also be subject to credit evaluations. Misconduct in areas such as public resource trading and enterprise-related charges will be recorded, resulting in restrictions on funding applications and performance ratings, according to the guidelines.
The guidelines also establish a “seriously discredited entities” list for sectors including real estate and the internet. Entities on this list would face restrictions or bans on issuing stocks and bonds.
Hu Dehua, son of former liberal Chinese leader Hu Yaobang, dies at 76 (SCMP)
Hu Dehua, son of the former Chinese leader Hu Yaobang, has died at the age of 76.
He died on Sunday in Beijing due to a heart attack, sources told the South China Morning Post.
Hu was a liberal businessman who repeatedly spoke out for political reform and press freedom in China – rare among the descendants of the Communist Party’s early top officials, a group known as “princelings”.
In 2016, he became vice-director of the outspoken magazine Yanhuang Chunqiu. But he was in the role for less than three months as he and other senior staff were replaced in July of that year in a management reshuffle that led to a sweeping shift in the magazine’s editorial direction.
The magazine’s articles touched on sensitive events in the party’s history and advocated political reform.
Hu’s father was a widely respected liberal leader who died of a heart attack on April 15, 1989 – two years after he was ousted by party conservatives for tolerating “bourgeois liberalisation”.
Mourning over the former party general secretary’s death sparked one of the largest pro-democracy movements in modern China. Because of this, the elder Hu’s name became taboo in China and was censored by the official media for many years.
Hong Kong & Macao
HK businesses forced to weigh options as Trump's tariffs squeeze access to US market (HKFP)
“Hong Kong is in a tougher spot. The US no longer treats it as separate from mainland China, which strips away any trade advantages it once had,” said Julien Chaisse, an international trade expert at the City University of Hong Kong (CityU).
“That’s not just symbolic because, I would say, it makes Hong Kong an even bigger liability for businesses that rely on access to North America,” Chaisse told HKFP. “Some will rethink their presence [in Hong Kong] or at least hedge their bets elsewhere.”
US sanctions 6 senior officials, as HK condemns 'bullying' (HKFP)
Hong Kong has slammed the United States for placing sanctions on six local and Chinese officials for their involvement in what Washington calls “transnational repression” and the implementation of the Beijing-imposed national security law.
In a statement released in the early hours of Tuesday, the Hong Kong government said it “strongly condemns” the US for imposing sanctions on Commissioner of Police Raymond Siu, Secretary for Justice Paul Lam, and four other officials involved in national security.
Hong Kong's new police chief stresses national security despite US sanctions (CNA)
Police commissioner Raymond Siu, one of the six people sanctioned, retired on Tuesday after nearly four years in charge.
His replacement Joe Chow, 52, said he was not worried about the sanctions and that national security was the "most important" priority.
"The US sanctions are barbaric acts attempting to intimidate ... police officers, so that we will stop working hard on national security," Chow told reporters on Wednesday.
"This shows that (the United States) considers our actions to be successful and effective. This means we should do more of it."
HK records 365 new HIV cases in 2024 (HKFP)
Hong Kong recorded 365 new HIV cases in 2024, with the youngest infected individual aged 14, health authorities have said.
The Department of Health announced on Thursday that the city saw a decline in the number of new HIV infections for the ninth consecutive year.
Giving voice to silent minorities (The Hong Konger)
In January 2024, the Hong Kong government appointed 179 people to fill about half of the seats of the District Councils (DCs), which advise the government about, and manage services in, the city’s 18 municipal districts. Yet only two of the members, Gurung and Dr Rizwan Ullah, are from an ethnic minority. The picture is worse in the city’s Electoral College, which selects its leader, and in the Executive Council, which consults on government policy: not a single non-Chinese member sits on either body.
“It’s not enough,” says Gurung. “There needs to be more non-Chinese district councillors. We need more opportunities and a greater voice. I request the government to allow us to work together to build a better community.”
Historically, there has been a lack of non-Chinese representation in the government, according to Dr John Tse, the former executive director at Hong Kong Unison, a now-defunct non-profit organisation that was committed to achieving racial equality in the city.
Data from 2021 shows that 4% of the city’s population is ethnically non-Chinese; that rises to about 8% when foreign domestic workers, who are not counted as residents, are included. If the council were to reflect the city’s resident population, at least 4% of members should be of non-Chinese ethnicity, equating to seven members.
US cuts force Radio Free Asia subsidiary Whynot to go dark (HKFP)
Whynot occupies a unique position in the Chinese-language media landscape, employees and experts alike told HKFP, as there are few alternative platforms dedicated to telling human interest stories and covering topics that appeal to China’s younger population.
Losing Whynot also means losing an important platform for a group of liberal-minded Chinese journalists to get editorial support and publish their stories, they said.
“We have produced analyses and feature stories that are not commonly available in Chinese media,” Justin said in Cantonese, speaking under a pseudonym due to safety concerns.
“Now this is simply lost.”
HK aims to ban e-cigarette smoking in public from 2026 - reports (HKFP)
Hong Kong is aiming to bar residents from possessing or smoking e-cigarettes in public from the second quarter of next year, in a move that will eventually ban their use even in private, according to local media reports.
The government is set to submit a bill that will strengthen its crackdown on e-cigarettes and heated tobacco products as early as the end of this month, local media reported on Wednesday citing sources.
The ban on the possession of e-cigarettes would have two phases, starting in public from 2026 before extending to private places later, according to the reports. The extension would be implemented after the first phase-ban is evaluated, though there is no timetable yet.
Billboards with 'hidden' political message removed says artist Badiucao (HKFP)
Chinese artist Badiucao has said that two Mong Kok billboards showing a clip he made with a hidden political message have been removed.
Organisers would not confirm the removal but have denied the work is political, calling the Australian-based artist’s move “disrespectful.”
Four-second black-and-white clips featuring Badiucao had been intermittently displayed on two LED billboards in Kowloon for Art Week. In the videos, the artist is seen silently mouthing a quote from Chairman Mao Zedong: “You must take part in revolution.”
Review: 'You Must Take Part in Revolution' (Foreign Policy)
A graphic novel plays out a nightmarish scenario of authoritarianism in the hopes of waking us up.
Taiwan
China’s military launches live-fire exercise in escalation of blockade drills near Taiwan (CNN)
The Chinese military staged a second day of exercises around Taiwan on Wednesday, launching live-fire strikes in the East China Sea and practicing blockade operations near crucial shipping lanes to the east and west of the island.
China has ramped up the frequency and complexity of its military drills around Taiwan in recent years – exercises that analysts say serve both as critical preparation and strategic cover for a potential future invasion of the self-governing island.
On Wednesday, the People’s Liberation Army (PLA) launched exercises – codenamed “Strait Thunder-2025A” – in the middle and southern areas of the Taiwan Strait, focusing on testing the troops’ capabilities of “joint blockade and control” and “precision strikes on key targets,” the Eastern Theater Command’s spokesperson Senior Colonel Shi Yi said in a statement.
As part of the drills, the ground army of the Eastern Theater Command conducted “live-fire long-range strike drills in designated areas of the East China Sea,” Shi said.
[…]
Taiwan’s defense ministry denounced the drills as “aggressive, provocative, and irresponsible” on Wednesday, adding that the island’s military will remain on high alert.
“Beijing’s reckless provocation of regional tensions, using global security and prosperity as bargaining chips, reveals its hegemonic mindset – one that treats lives as expendable and dismisses international rules altogether,” the ministry said in a statement.
Scholars note China coast guard's deeper involvement in Taiwan drills (Focus Taiwan)
Su Tzu-yun (蘇紫雲), a division director at the Taiwan military-funded think tank Institute for National Defense and Security Research, said compared with the PLA's "Joint Sword" military exercises in 2024, China's coast guard simulated inspecting, repelling and intercepting civilian ships in the Taiwan Strait during the most recent drills.
This shows that China's military is considering employing nonmilitary operations to cut off Taiwan's maritime transportation and supply lines to force Taiwan to surrender should a cross-strait war break out, Su said.
Chieh Chung (揭仲), a research fellow at the Association of Strategic Foresight, a Taipei-based think tank, also said the relatively larger number of Chinese coast guard vessels joining the just concluded exercises was part of Beijing's legal warfare targeting Taiwan to prove to the world that it has jurisdiction over the Taiwan Strait.
2025 Han Kuang extended to 2 weeks of wargames, 10 day live-fire drills (Focus Taiwan)
Taiwan's largest-scale annual military drills, the Han Kuang exercises, will be lengthened this year to include two weeks of computerized tabletop wargames and 10 days of live-fire drills, the nation's armed forces announced on Wednesday.
The Han Kuang exercises are held annually in two stages. This year's 41st edition will kick off with tabletop war games, conducted from April 5-18, said Major General Tung Chi-hsing (董冀星), director of the joint operations planning division under the Ministry of National Defense (MND), at a Taipei news briefing.
The 14-day computer-aided wargames are reportedly the longest ever. Last year the tabletop war games were held for eight days, while in previous versions computerized exercises usually lasted 5 days.
Taiwan reassured by Trump’s focus on fending off China (The Washington Post)
Taiwan is reassured that the Trump administration has made deterring a Chinese seizure of the island a military priority, former officials and analysts said Monday, after months of mounting concern that the president would abandon U.S. support.
A secret interim internal guidance memo, which outlined in detail President Donald Trump’s vision to prepare for and win a potential war against China, surprised analysts in Taiwan, who have watched with concern as Trump has adopted an “America First” foreign policy and suspended U.S. military assistance for Ukraine.
“Taiwan has not seen such a clear statement from the United States until now,” said Jun-ji Shih, a former vice premier who was an advisory member of Taiwan’s National Security Council until 2020.
Taiwan says US tariffs unreasonable, partly blames Trump policies for trade surplus (Reuters)
Taiwan said on Thursday that U.S. tariffs levied on the island were unreasonable and it would discuss them with Washington, partly blaming U.S. tech curbs on China in President Donald Trump's first term for driving the trade imbalance.
Trump on Wednesday announced across the board import tariffs, with much higher duties for dozens of trading partners, including Taiwan which runs a large trade surplus with the United States and will have a 32% duty placed on its products.
The U.S. tariffs, however, do not apply to semiconductors, a major Taiwan export.
"We feel that these measures are unreasonable, and we are also worried about the possible impact on the global economy," President Lai Ching-te said on his Facebook page, after meeting with senior cabinet members to discuss how to respond. He did not mention imposing reciprocal tariffs.
NDC plans measures as reciprocal tariffs push Taiwanese firms to reshore (Focus Taiwan)
Taiwan's National Development Council (NDC) said Friday it will roll out support measures to help local businesses adapt to rising U.S. tariffs, as many Taiwanese firms in Southeast Asia face higher reciprocal duties than in Taiwan and are considering moving production back home.
Planned measures include improving the investment environment, boosting innovation, and helping industries build new competitive advantages, NDC Minister Liu Chin-ching (劉鏡清) said at a news conference.
Taiwan investment in U.S. will not cause industrial hollowing out: DGBAS (Focus Taiwan)
With the Trump administration using tariffs in part to encourage Taiwanese manufacturers to invest massively in the United States, the Directorate General of Budget, Accounting and Statistics (DGBAS) said on Saturday such fund flight would not cause the industrial hollowing out of Taiwan.
Taiwanese manufacturers in SE Asia worried about impact of new U.S. tariffs (Focus Taiwan)
Taiwanese textile and furniture companies that have large production bases in Southeast Asia have expressed concerns about their ability to navigate the risks caused by the latest round tariffs imposed by the United States on countries worldwide.
Eclat Textile Co., a Taiwanese supplier to major international sportwear brands like Nike, Lululemon and Under Armour, said Thursday that 60 percent of its garment sales come from the U.S. market.
In an interview with CNA, the textile supplier said 60 percent of its total production is in Vietnam, 27 percent in Indonesia, and 10 percent in Cambodia, which means it is now facing increasing risks.
Seimas speaker: Taiwan’s cooperation with Lithuania falls short of expectations (LRT)
The island opened a representative office in Vilnius in 2021, part of Lithuania’s push to stake out a more hawkish position on China and forge closer relations with Taiwan.
Relations between Vilnius and Beijing have deteriorated as a result. In particular, the name of the office, which includes “Taiwanese”, which Beijing sees as an attempt by Taiwan to act as an independent state. In other countries, the island’s representative offices operate under the name Taipei.
According to Skvernelis, the normalisation of relations with China is on the government’s agenda: “The processes are certainly not being discussed in public, but they are probably taking place in one form or another.”
World
Asia & Pacific
Myanmar earthquake: China and others step into aid gap left by Trump cuts (The Guardian)
China sent an 82-person team of rescuers into the country on Saturday. On Sunday, the state-run Xinhua news agency said a 118-member search and rescue team had also arrived. The team included earthquake experts, medical workers, field hospital workers and rescue dogs.
The Chinese government said on Monday that it has sent a first batch of relief supplies worth 100m yuan ($13.78m) to Myanmar, including tents, blankets and first aid kits, the official Xinhua news agency reported.
Hong Kong has earmarked HK$30m ($3.8m) for emergency relief support, and sent in a 51-person team, with two search and rescue dogs and equipment, including life detectors.
Deadly Blunders in Bangkok (China Media Project)
As a 7.7 magnitude earthquake struck Myanmar and Thailand last Friday, the temblor rattled buildings across the sprawling Thai capital of Bangkok, home to an incredible 142 skyscrapers. When the shaking ceased all were standing strong — with one very notable exception. The State Audit Office (SAO) building in Chatuchak district, a 30-story skyscraper still under construction by a subsidiary of a Chinese state-owned enterprise, collapsed into a heap of rubble, trapping nearly 100 people inside.
As of this week, 15 have been confirmed dead in the collapse, and a further 72 remain missing. Thailand announced over the weekend that it was launching an investigation to determine the cause of the collapse, and the prime minister said the tragedy had seriously damaged the country’s image.
As emergency teams sifted through the wreckage in the immediate aftermath, the building’s primary contractor, China Railway No. 10 Engineering Group, came under intense public anger and scrutiny. Anger was further fueled by clear efforts by the company, and by Chinese authorities, to sweep the project and the tragedy under the rug.
US approves sale of 20 US F-16 fighter jets to Philippines as Washington tightens key Asian alliance (CNN)
The United States has approved the potential sale of 20 F-16 fighter jets to Manila, giving the key US ally in the Indo-Pacific a major upgrade to its air force just days after US Defense Secretary Pete Hegseth vowed to counter “China’s aggression.”
The US Defense Security Cooperation Agency (DSCA) announced the proposed sale of the F-16s and related equipment, worth an estimated $5.58 billion, in a statement on Tuesday.
“This proposed sale will support the foreign policy and national security of the United States by helping to improve the security of a strategic partner that continues to be an important force for political stability, peace, and economic progress in Southeast Asia,” DSCA said.
The announcement comes less than a week after Hegseth visited the Philippines, his first trip to Asia as defense chief, and said Washington will enhance its military alliance with Manila as it aims to “reestablish deterrence” to counter “China’s aggression” in the Indo-Pacific region.
On Wednesday, China cautioned Manila on the deal.
“Any defense and security cooperation that the Philippines engages in with other countries should not target or harm the interests of any third party, nor should it threaten regional peace and security or escalate tensions in the region,” Chinese Foreign Ministry spokesperson Guo Jiakun said.
“As for who is fueling the flames, who is provoking military confrontation, and who is turning Asia into a powder keg, we believe that regional countries can see the situation clearly.”
Philippines assures China potential F-16 purchase not intended to harm any nation (Reuters)
The potential purchase of F-16 jets by the Philippines from the United States does not harm the interests of any third party, including China, a Philippine security official said on Thursday.
National Security Council spokesperson Jonathan Malaya assured China the planned acquisition is not intended as a threat to any nation and is merely part of the Philippines' efforts to modernize its military.
"We would like to assure the People's Republic of China that the planned procurement of the F-16 fighter jets to the Philippine arsenal does not in any way harm the interest of any third party," Malaya told a briefing.
Military chief says Philippines ‘inevitably’ involved if Taiwan invaded (The Straits Times)
The Philippines’ military chief said on April 1 his country would “inevitably” be involved if neighbouring Taiwan was invaded while warning China was working to infiltrate the Filipino military and other institutions.
General Romeo Brawner made the comments as Beijing’s military surrounded Taiwan in large-scale exercises it said were practice for a blockade of the self-ruled island, which China has vowed to one day bring under its control.
“Start planning for actions in case there is an invasion of Taiwan,” he told troops in northern Luzon island.
“Because if something happens to Taiwan, inevitably we will be involved,” Gen Brawner said without naming the potential invader.
Philippines says suspected spy confessions in China 'scripted' (The Star)
The Philippines said on Saturday (April 5) the supposed confessions of three Filipinos arrested by China for alleged espionage appear to have been "scripted" and urged Beijing to respect their rights.
Manila's reaction came two days after Beijing said it had "destroyed" an intelligence network set up by a Philippine espionage agency and had arrested three Filipino spies.
The espionage dispute comes as the two countries confront each other over disputed territory in the South China Sea and as tensions rise over the Philippines' security ties with ally the United States.
China, Japan and South Korea to strengthen free trade (DW)
China, Japan and South Korea agreed to boost trade cooperation in a meeting in Seoul held on Sunday.
The meeting was attended by South Korean Industry Minister Ahn Duk-geun, his Japanese counterpart Yoji Muto, and Chinese Commerce Minister Wang Wentao.
China woos the neighbours, with Xi Jinping said to be planning 3-country tour in April (SCMP)
Diplomatic sources said Xi would be likely to set off in mid-April, with stops in Vietnam, Malaysia and Cambodia. One source, who spoke on condition of anonymity, said plans were being made for the Chinese leader to spend three days in Malaysia.
Another source, who also asked not to be named, said the Malaysian visit would build on Xi’s productive November meeting in Beijing with Prime Minister Anwar Ibrahim. The trip would “definitely [be] good” for boosting bilateral ties, the source added.
The Southeast Asian tour will mark Xi’s first foreign visits of the year and comes at a time when China is pushing for stronger ties with neighbouring countries to present itself as a credible and responsible regional partner.
Vietnam to host China, EU leaders in coming weeks amid US tariff risks, sources say (Reuters)
China's President Xi Jinping and European Union leaders are set to visit Vietnam in the next few weeks in a swirl of diplomatic activity amid growing risks from U.S. trade tariffs, officials said.
China, the EU and Vietnam run very large trade surpluses with the United States and have all faced new tariffs from Donald Trump's administration, with more expected to be announced on Wednesday.
Xi Jinping is expected to meet Vietnamese leaders in Hanoi on April 14, two Vietnamese officials with direct knowledge of the plans told Reuters, in what would be his second visit to the country in less than 18 months.
An unexplained death, ‘abuse and slavery’: Indonesian fishers reveal life on long haul vessels (The Guardian)
Ricky is among the tens of thousands of Indonesian fishers who leave home – sometimes for years at a time – to work on foreign boats. Vast numbers are subjected to abuse, with vessels owned by companies from either China or Taiwan the worst offenders, according to a report published in 2023.
Deaths like YK’s are not uncommon, with more than 100,000 fishing-related deaths every year, according to estimates by the Pew Charitable Trusts, which says many are avoidable and most not officially recorded.
The issue was brought into the spotlight in March after a group of Indonesian fishers filed a US lawsuit against American seafood company Bumble Bee Foods – owned by Taiwanese tuna supply giant Fong Chun Formosa (FCF) – alleging it knew or should have known it was selling goods produced through exploitation and abuse of workers.
The lawsuit says the plaintiffs, from rural Indonesian villages, worked on boats that were part of Bumble Bee Food’s “trusted network” of suppliers. But once onboard they were “subjected to physical abuse and violence, deprived of adequate food, and denied medical care (and put back to work) even when seriously injured”. One man says he was repeatedly assaulted with a metal hook by his captain.
Xi says China and India should strengthen ties in 'Dragon-Elephant tango' (Reuters)
China and India should work more closely together, Chinese President Xi Jinping told Indian President Droupadi Murmu, saying their relationship should take the form of a "Dragon-Elephant tango" - a dance between their emblematic animals.
The Chinese and Indian presidents exchanged congratulatory messages on Tuesday, the 75th anniversary of the start of their diplomatic ties, as tensions ease after a 2020 clash between their troops along their shared border in the Himalayas.
Xi said the neighbours should find ways to coexist peacefully and that he was ready to deepen communication and coordination in major international affairs, and jointly safeguard peace in border areas.
China willing to import more Indian products, envoy says (Reuters)
"We are willing to work with the Indian side to strengthen practical cooperation in trade and other areas, and to import more Indian products that are well-suited to the Chinese market," Chinese Ambassador Xu Feihong told Chinese state-backed newspaper the Global Times in an interview published on Monday.
"We also welcome more Indian enterprises to cross the Himalayas and seek opportunities for cooperation in China, sharing the dividends of China's development," he said.
In January, both sides said they would resume direct flights after they reached an agreement in October regarding patrolling their Himalayan border.
Xu added that China hopes India will create a fair and transparent business climate for Chinese companies and further expand their mutually beneficial cooperation.
India placed restrictions on Chinese investments in the country after the 2020 clash and has not yet lifted the barriers.
As Bangladesh builds ties with China, India looks on (DW)
Jasmin Lorch, a senior researcher at the German Institute of Development and Sustainability (IDOS), told DW that the visit harbors both benefits and risks for Bangladesh from a geostrategic perspective.
"On the one hand, it contributes to further diversifying Bangladesh's international alliances, thereby reducing its reliance on India, with which relations have begun to deteriorate, as well as its reliance on the US, whose foreign policy has become more unreliable under President Donald Trump," she said.
However, the expert added that Bangladesh increasing ties with China is "bound to anger India," as it brings Beijing's influence closer to its border.
"Deepening cooperation with China in areas such as the modernization of Mongla port or, potentially, the Teesta River project, will strengthen Bangladesh's integration into China's Belt and Road Initiative, an integration India rejects," she added.
China’s Digital Governance in the Indo-Pacific (German Marshall Fund of the United States)
The year 2025 marks the 10th anniversary of China’s Digital Silk Road, which has become an increasingly crucial component of Xi Jinping’s flagship foreign policy project: the Belt and Road Initiative. Over the past decade, China has massively expanded its digital infrastructure investment across the globe. Accompanying the investment has been the diffusion of China’s digital governance norms and standards in recipient states. Countries in the Indo-Pacific have been at the forefront of this stretching Chinese digital influence landscape. The conflation between digital development cooperation and digital governance norms adoption has far-reaching implications that need to be better understood and addressed.
To discuss the issue, Michael Caster joins host Bonnie Glaser. Caster is the Head of Global China Programmeat ARTICLE 19, an NGO that advances freedom of opinion and expression. His organization has published two reports examining China's Digital Silk Road.
China, New Zealand lead historic dives in southern abyss, Australia complains (SCMP)
China and New Zealand have led the world’s first crewed expedition to the depths of the remote Puysegur Trench, which cleaves through the floor of the south Tasman Sea, in a mission hailed as a triumph of oceanic exploration.
However, the expedition – a collaboration of 68 scientists from eight countries – sparked unease in nearby Australia, underscoring the geopolitical tensions that are simmering beneath the waves.
Canberra raised concerns on Monday about the presence of the Tan Suo Yi Hao research vessel as it sailed along Australia’s southern coastline, just days after completing its historic exploration of the Puysegur Trench off the New Zealand coast.
According to the Chinese Academy of Sciences’ Institute of Deep-Sea Science and Engineering at Sanya, in the southern province of Hainan, the scientists were from China, New Zealand, Malaysia, Denmark, Germany, France, Brazil, and India.
During the mission, the researchers discovered the southern hemisphere’s deepest cold seep ecosystem to date and collected specimens – many of them previously unknown – from depths of more than 6,000 metres (19,700 feet).
Albanese ‘would prefer’ Chinese research vessel was not off the coast of Australia (The Guardian)
Anthony Albanese says he “would prefer” a Chinese research vessel was not sitting off the coast of Victoria and stressed it will be closely monitored by the Australian defence force.
The research vessel Tan Suo Yi Hao was directly south of the Victorian town of Portland on Monday afternoon and travelling west after a port call in Wellington.
“I would prefer that it wasn’t there,” Albanese told reporters. “But we live in circumstances where, just as Australia has vessels in the South China Sea and vessels in the Taiwan Strait and a range of areas, this vessel is there.
“It’s been in New Zealand on a joint research operation and this isn’t the first time that a similar vessel has been around the Australian coast. It occurred in 2020, just to give one example. Australia, as you would expect, is monitoring this.”
Labor and Coalition pledge to retake control of Chinese-controlled Port of Darwin (ABC News)
The Port of Darwin looks set to return to Australian ownership no matter who wins the federal election after both the Coalition and Labor pledged to negotiate a deal.
The port has been in a Chinese company's hands after the Northern Territory government awarded a 99-year lease to Beijing-controlled Landbridge Group in 2015, under a deal approved by the then-Turnbull government.
Citing the current geo-political environment, the Coalition said it would force Landbridge Group to sell back the port to an Australian government approved operator, or as a last resort compulsorily acquire it and compensate the Chinese-owned company.
Confucius Institutes: Six Australian universities close China centres (BBC)
Six Australian universities have quietly closed Chinese government-linked Confucius Institutes (CI) on their campuses.
The Australian government has ramped up scrutiny on the education centres in recent years over concerns that Beijing is using them to spread propaganda and spy on Chinese international students.
China says its Confucius Institutes, which offer Chinese language and cultural classes overseas, are a "bridge reinforcing friendship" with the world.
There have been growing global concerns about the Chinese government's reach overseas through such education centres, with universities in America and Europe also choosing to close some of their branches.
These closures mean nearly half of all the Confucius institutes at Australia's universities have been shuttered. Seven others remain open, according to a report by the Australian Broadcasting Corporation (ABC).
Yes, some of China’s educated youth just asserted sovereignty over Australia (Lowy Institute)
Although this current wave of Pan-Asianism remains largely an online, grassroots movement without posing an immediate security threat to the South Pacific, the risks stemming from this extremist ideology cannot be overlooked. While such a movement might seem harmless now, some of its participants could eventually become influential figures – industry elites or even Communist Party officials – potentially shaping China’s foreign policy in the decades to come.
Americas
Trump Hikes China Tariffs as High as 65% in Blow to Economy (Bloomberg)
The US has hit China with the biggest-ever tariff hike on almost all Chinese products, bringing total levies to at least 54%, a move that could decimate Chinese shipments to the world’s largest economy.
The new 34% tariffs announced by President Donald Trump on Wednesday will add to the 20% tariffs that entered effect earlier this year, hitting most of the half a trillion dollars worth of goods Chinese firms exported to the US in 2024. The new tariffs will go into effect on April 9, he said during an event in the White House Rose Garden.
“Put simply: if Trump’s prior 20% tariff hikes took a hammer to US-China trade, today’s actions are a bazooka,” said Jennifer Welch, chief geoeconomics analyst for Bloomberg Economics.
The latest tariffs bring US levies close to the 60% rate Trump floated on the campaign trail.
Macquarie Group Ltd. estimated last year that China’s GDP growth could be reduced by 2 percentage points in the event of a 60% tariff rate. A simulation by Bloomberg Economics shows that the trade between the world’s largest economies would shrink to practically nothing with tariffs that high.
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The Clawback: Reclaiming Strategic Assets from China (Rhodium Group)
The United States is on an unspoken mission to claw back strategic assets from China. This is not a policy that began with the current US administration, nor has it been articulated in a speech or policy document. Instead, this is a pattern of observed behavior driven by growing US anxiety over growing dependencies on China in critical industries and infrastructure. Of course, the urgency to diversify away from China in sensitive sectors is not just a US phenomenon: Partner countries are working toward a similar goal, but their tactics will be subtler than their American counterparts and may still leave a door open for (conditional) Chinese investment. As the clawback becomes more visible in the coming months and years, expect Beijing to push back with tighter restrictions on outbound investment as it tries to hold onto prized assets from a decade-long M&A spree.
Trump’s Domestic Crackdown Is About China, Too (WPR)
The relative lull in bellicose rhetoric and actions toward China since Trump took office should not be seen as an effort to downgrade the importance of the China challenge to the new administration. To the contrary, the aggressive stance taken by the Trump administration toward Europe and other allies, like Canada, is part of a sequential approach that still centers the China threat in U.S. foreign policy. Seen in this light, efforts to coerce and bully allies to increase defense spending, hand over Greenland and find a quick if unappetizing solution to end the Ukraine war are merely a way to facilitate Washington’s shift of strategic focus to Asia. China may not be the overt reason for these policy changes, but it is the underlying challenge that now drives U.S. foreign policy.
Trump’s China ambassador pick gets kid-glove treatment on Capitol Hill (Politico)
The Senate Foreign Relations Committee spared President Donald Trump’s nominee for U.S. ambassador to China, David Perdue, some potentially awkward questions in his confirmation hearing Thursday.
Lawmakers steered clear of Perdue’s past record of holding positions at odds with Trump’s “America First” policies, like outsourcing U.S. jobs to Asia or his refusal to condemn crackdowns on pro-democracy protesters in Hong Kong. Instead, they focused on issues ranging from perceptions of China’s national security threat, the importance of allies and partners and how the dismantling of USAID undermines U.S. soft power.
It’s long been expected that Perdue would have a relatively easy path to confirmation. But it is notable that even the most outspoken supporters of the Trump agenda — think Sen. Rick Scott (R-Fla) — or critics of China’s human rights record — think Sen. Jeff Merkley (D-Ore.) — stayed away from raising Perdue’s mixed record in those areas.
US bans government personnel in China from romantic or sexual relations with Chinese citizens (AP)
The U.S. government has banned American government personnel in China, as well as family members and contractors with security clearances, from any romantic or sexual relationships with Chinese citizens, The Associated Press has learned.
Four people with direct knowledge of the matter told the AP about the policy, which was put into effect by departing U.S. Ambassador Nicholas Burns in January shortly before he left China. The people would speak only on condition of anonymity to discuss details of a confidential new directive.
Though some U.S. agencies already had strict rules on such relationships, a blanket “non-fraternization” policy, as it is known, has been unheard of publicly since the Cold War. It’s not uncommon for American diplomats in other countries to date locals and even marry them.
Trump extends TikTok deadline for the second time (CNBC)
President Donald Trump on Friday extended a deadline requiring China-based ByteDance to sell the U.S. operations of TikTok or face an effective ban in the country, marking the second time he has taken such action.
Trump announced the extension on his Truth Social platform, saying the TikTok deal “requires more work to ensure all necessary approvals are signed.” The extension will “keep TikTok up and running for an additional 75 days,” he said. The new extension kicks TikTok’s deadline to mid-June.
“We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!),” Trump said in the post.
China shows it will always have a say in a TikTok deal ()
Whatever happens with TikTok, whether a deal goes through contrary to the law, or even if a ban is enacted or a truly “qualified divestiture” takes place, this whole saga will at best have only addressed the national security, privacy, and algorithmic manipulations of one app. Threats to US users’ privacy, bad behavior in the market, national security where it is implicated—the whole range of TikTok concerns and more—remain broadly unaddressed if the app at issue is not TikTok. Thats why, for years, I and others have advocated a regulatory approach that covers all services.
Cybersecurity Professor Faced China-Funding Inquiry Before Disappearing, Sources Say (WIRED)
Wang is considered among the top researchers in the field of privacy, data security, and biometric privacy, and his sudden disappearance came as a shock to many of his academic peers. Wang joined IU in 2004 and is the lead principal investigator of the multidisciplinary Center for Distributed Confidential Computing, which he established in 2022 with an almost $3 million grant from the National Science Foundation (NSF), according to a since-deleted bio on IU’s website. As part of his application for the NSF funding and other US federal research grants, Wang would have been required to disclose other grants he already received or were currently pending review.
Florida college fires Chinese professor under state’s ‘countries of concern’ law (The Guardian)
The New College of Florida has fired a Chinese language professor under a state law that restricts Florida’s public universities from hiring individuals they deem to be from “countries of concern”.
On Friday, Suncoast Searchlight reported the firing of Kevin Wang, a professor who has sought asylum in the US and is authorized to work in the country. According to the outlet, Wang had been teaching classes in Chinese language and culture for nearly two years when he was fired on 12 March.
According to his dismissal letter, which Suncoast Searchlight reviewed, the New College of Florida’s decision to terminate Wang’s contract was “not based on any misconduct and does not constitute a dismissal for cause or disciplinary action”.
Instead, the college cited state law SB 846 which states that schools “may not accept any grant from or participate in any agreement with any college or university based in a foreign country of concern” without the approval from the board of governors, Suncoast Searchlight reports.
According to the law, the so-called “countries of concern” include China, Russia, Iran, North Korea, Cuba, Venezuela and Syria.
Ports, Power, and Politics: Behind the High-Stakes Battle Over CK Hutchison’s Panama Deal ()
In sum, if China wants to prevent the deal from happening, it certainly has the tools to do so. Nonetheless, such actions would vindicate—in part—Trump and his team’s claim that China could potentially instrumentalize CK Hutchison’s position in Panama to influence the Panama Canal operations. The Chinese government’s intervention to prevent the transaction with the aim of safeguarding its national security and interests would also mean the end of Hong Kong’s autonomy in all but name.
[…]
Meanwhile, if China blocks the deal and Panama’s legal rulings and audit go against CK Hutchison, the company could find itself with no ports and no income. In that event, a lengthy arbitration between CK Hutchison and Panama would likely follow, similar to the one currently underway between Isla Margarita, Landbridge Group, and the Panama Colón Container Terminal.
US pressures Argentina’s Milei to scrap currency swap accord with China (SCMP)
A top adviser to US President Donald Trump said that Washington’s support for Argentina’s ongoing negotiations with the International Monetary Fund hinges on President Javier Milei distancing himself from China, specifically by ending a currency swap agreement with Beijing.
Speaking at Miami Dade College on Thursday, Mauricio Claver Carone, Trump’s special envoy for Latin America, described Milei as “an ally” but stressed that Washington’s priority is to ensure any new IMF deal does not “reinforce China’s position” in Argentina.
“We want the famous credit line that Argentina has with China to end,” Claver Carone said, referring to the swap arrangement, which he labelled “extortionate”. He warned that as long as it remains in place, “China will always be able to extort Argentina.”
Europe
China and Russia look to ‘broader and broader’ ties and ‘close coordination’ (SCMP)
China and Russia have pledged to strengthen strategic coordination to jointly uphold a multipolar global order ahead of Chinese President Xi Jinping’s planned visit to Moscow in May.
Russian President Vladimir Putin met Chinese Foreign Minister Wang Yi in Moscow on Tuesday, telling him that he was “looking forward” to welcoming Xi next month.
A “rich and well-prepared” programme awaited Xi during his visit on the occasion of Russia’s Victory Day, Putin said.
“It is going to be an official visit … He’s going to be our main guest of honour and we will have a chance to speak about the current state of our bilateral relations and also to discuss our cooperation on multilateral platforms.”
Putin told Wang that Russia and China should continue to send “strong signals to the world about strengthening strategic cooperation” in the face of the volatile international situation, according to a Chinese foreign ministry readout.
Russia’s Putin hosts Chinese Foreign Minister Wang for talks in Moscow (Al Jazeera)
China and Russia are “friends forever, never enemies”, Chinese’s Foreign Minister Wang Yi has said in remarks in a visit to Moscow during which he has held talks with Russian President Vladimir Putin and his counterpart Sergey Lavrov.
Wang on Tuesday also welcomed signs of normalising ties between Washington and Moscow.
“The principle of ‘friends forever, never enemies’ … serves as a solid legal basis for advancing strategic cooperation at a higher level,” Wang told Russia’s RIA state news agency in an interview.
EU hints at measured approach to China, offering to rebalance trade relations (Euractiv)
While China remains a crucial trading partner for the EU, the trade balance is skewed, with a growing deficit in goods trade due to illegal subsidies. The sides do not see eye to eye on electric vehicles and dairy products.
In 2024, the EU-China trade deficit reached €304.5 billion, while Chinese foreign direct investment in the EU hit a five-year high of €185 billion, nearly matching EU investments in China.
Despite the need for the EU to steer its ship in clear waters and away from the hurricane blowing through Washington, a white flag with China seems unlikely. However, a pragmatic relationship offers reasonable advantages.
The EU, however, might want to solve its woes sooner rather than later and decide once and for all if China is its systemic rival or strategic partner. Across the pond, Donald Trump is playing a high-risk, high-reward game.
Read-out of the meetings between Commissioner Šefčovič and Chinese Vice Premier He Lifeng, Commerce Minister Wang Wentao and Customs Minister Sun Meijun (European Commission)
Commissioner Šefčovič discussed with Vice Premier He Lifeng, Minister of Commerce Wang Wentao, and Customs' Minister Sun Meijung on how to improve and rebalance EU-China trade and investment relations.
Discussions included long standing systemic issues, the need to level the playing field for European companies on the Chinese market, a number of key market access issues, as well as investments in electric vehicles supply chain.
Commissioner Šefčovič and Minister Wang agreed to closely follow up on their discussions through regular contact to provide political steer and ensure adequate progress on all discussed files, including the key market access issues raised by the EU. They agreed to have a dialogue covering all trade and investment issues related to the electric vehicles supply chain, in order to ensure they provide greater contribution to long-term European competitiveness and quality jobs.
China Says It Has Agreed to EV Tariffs Negotiations With EU (WSJ)
China’s commerce ministry has said that China and the European Union have agreed to restart negotiations on electric-vehicle tariffs, coming hot on the heels of Trump’s announcement of more tariffs.
The Chinese Ministry of Commerce said at a press conference on Thursday that talks will start as soon as possible, and aim to foster a good environment for Chinese and European companies to invest and work together.
That follows President Trump’s announcement of an additional 34% tariff on Chinese goods and a 20% duty on EU goods. A separate 25% tariff on global automotive imports has also featured in the Trump administration’s trade policy.
Beyond overcapacity: Chinese-style modernization and the clash of economic models (MERICS)
In Europe, there is growing concern that China exporting its overcapacities could potentially undermine Europe’s industrial base, potentially creating a European China shock analogous to the one the US faced in previous decades.
The best way for the EU to develop measures to deal with the challenges created by Chinese overcapacities would be to coordinate with partners, but autonomous action is warranted first, with coordination with friends following suit.
The larger the coalition, the bigger the scale of the collective undistorted market for companies to operate in, the smaller the chances of economies of scale for advantaged Chinese firms in third markets, and the higher the collective political cover against Beijing’s retaliation.
Finally, Europe should not plan on Beijing fighting China’s overcapacity, even for its own reasons. The phenomenon is a feature, not a bug, of Xi’s new economic policymaking and ideology as the party state prioritizes self-reliance and economic security at all costs, even at the erosion of profitability, return on investment, and efficiency.
A New Triangle: The Interplay Between China and EU-India Relations (Asia Society)
What is the current state of EU-China and EU-India relations? As India’s influence and economic appeal grow, could it become a viable alternative to China for European business leaders and policymakers? How is Brussels incorporating India into its strategies to address a potential crisis in Asia or the broader Indo-Pacific?
Middle East & North Africa (MENA)
Is China’s Peace Plan Still Relevant for Gaza? (The Diplomat)
In March 2025, the resumption of Israel’s bombing campaign on Gaza shattered the fragile ceasefire that had been brokered between Israel and Hamas just two months earlier. The ceasefire, which had offered a fleeting glimpse of hope after the conflict erupted on October 7, 2023, quickly gave way to renewed hostilities. This violent reversal exposed the inherent fragility of third-party mediation efforts, even for a rising power like China. Faced with the sobering reality of over 50,000 Palestinian casualties and the escalating human toll of the conflict, Beijing has recalibrated its diplomatic calculus.
The renewed bombing campaign did more than just reignite violence, it signaled a dramatic shift in regional dynamics. The fragile truce, achieved through third-country mediation, was undone by the overwhelming momentum of the conflict, raising questions about the efficacy of external interventions. With the risk of miscalculation ever-present and the potential for severe political backlash mounting, Beijing appears to have decided that the costs of spearheading mediation in such a volatile environment far outweigh the potential diplomatic rewards. Consequently, China has stepped back, allowing more experienced mediators from Qatar, Egypt, and the United States to navigate the treacherous terrain of conflict resolution.
China, Palestine, Israel w/ Guy Burton ()
It has been 541 days, almost a year and a half, since the Hamas-led attack on Israel on October 7, 2023. As of March 22, 2025, at least 50,021 people have been killed, 15,613 of which were under 18 years old. Over 140,000 people have been displaced.
The Monitor spoke with Dr. Guy Burton to discuss how both China and the United States have responded to the war. The U.S.-China rivalry has been playing out in the Middle East for longer than the most recent Israel-Gaza war, but as Dr. Burton explains, the United States’ unwavering commitment to Israel amidst devastating death tolls and claims of war crimes puts China in a much better position. As Dr. Burton states, “China doesn't have to do very much right now to present itself as a responsible great power because the Americans’ actions are making them look that way.”
As China Slows and Tariffs Rise, Where Does the Middle East Turn? ()
China remains a top destination for Gulf oil, petrochemicals, and industrial materials. A sustained slowdown could reduce demand, lower export volumes, and shrink budget margins. According to IMF estimates, a 1 percentage point rise in China’s growth can lift other countries by around 0.3 points. The inverse holds as well. China’s cooling economy—forecasted to grow at just 4.5% in 2025—could weigh heavily on Gulf states reliant on Chinese demand for energy and construction materials. For Middle Eastern countries, especially commodity exporters, this reinforces the need to reassess exposure and build more resilient, diversified trade portfolios
Global Institutions & Multilateral Relations
BRICS Expansion and the Future of World Order: Perspectives from Member States, Partners, and Aspirants (Carnegie Endowment for International Peace)
The potential of BRICS members and partner countries to fulfill their individual aspirations via BRICS hinges on what vision of the future of world order ultimately wins out within BRICS.
Does China have more friends than the West thinks? ()
My biggest takeaway was that China was indeed more popular outside the West than we in the West often give it credit for. The following table, taken from the GPOC, shows a regional breakdown. The darker the red, the more favourable the region to China; the darker the blue, the more unfavourable. Sub-Saharan Africa has consistently felt very positive towards China, while net positive views also dominate in Asia generally. You won’t be surprised to see what the blue regions are.
But dig a little deeper into the country-specific data, and it’s curious that some of the countries most often mentioned in dramatic reports of a new, global ‘axis of evil’ led by Beijing actually don’t like China all that much. Iranians have cooled considerably on China since 2021; and the Brazilians have often been lukewarm. This is a helpful reminder whenever you read reports about the ‘BRICS’ alliance or the idea of a China-Iran-Russia axis.
Business, Economy & Finance
Bank of China, China Construction Bank beefed up with billions in funding to boost economy (CNN)
Four of China’s largest state-owned banks said on Sunday they plan to raise a combined 520 billion yuan ($71.60 billion) in private placements from investors, including the finance ministry, after Beijing pledged to help them support the economy.
The fundraising, which aims to boost the banks’ core Tier-1 capital, comes after Chinese policymakers vowed earlier this month to recapitalize major state banks to the tune of 500 billion yuan to boost their ability to bolster the real economy. Their shares rose on Monday a day after the plans were announced.
Bank of China said it aims to raise up to 165 billion yuan and China Construction Bank plans private placements of up to 105 billion yuan, filings released by the banks on Sunday said.
Chinese banks increase consumer loan rates from record low amid pressure on margins (SCMP)
Chinese banks have begun raising consumer loan interest rates just about two weeks after cutting them to record lows, underscoring the challenges of lowering funding costs amid sustained pressure on margins.
Lenders including China Merchants Bank and Bank of Jiangsu, which previously engaged in a price war by offering consumer loan rates as low as 2.58 per cent annually, have now adjusted their rates to no less than 3 per cent, according to online advertisements.
Major banks such as Industrial and Commercial Bank of China and Agricultural Bank of China will also implement the 3 per cent floor rate starting in April, according to the advertisements. These rates were as high as 10 per cent about two years ago.
Fitch cuts China rating on weakening finances, debt concerns, following Trump tariffs (SCMP)
Fitch Ratings downgraded China’s sovereign rating on concerns over weakening finances and rising public debt, just one day after the US imposed higher tariffs on the country.
The cut takes China’s long-term foreign currency default rating to “A” from “A+” with a stable outlook, Fitch said in a statement on Thursday.
China’s Ministry of Finance responded with a strong rebuke, describing the decision as biased and not reflective of reality.
Chinese Developer Vanke Posts First-Ever Annual Loss as Liquidity Problems Pile Up (Caixin)
China Vanke Co. Ltd., once a top-performing real estate giant, posted its first-ever annual loss, signaling deepening distress in the country’s embattled property sector.
The Shenzhen-based developer reported a 506.79% drop in net profit resulting in a loss of 49.48 billion-yuan ($6.82 billion) in 2024, as liquidity strains, massive asset and credit impairments, and market downturns battered its operations — despite a full takeover by Shenzhen state-owned capital.
China Property Pain Worsens With Sales Slump, Vanke Loss (Bloomberg)
China’s residential sales fell again in March, suggesting the recovery in the property sector remains frail.
The value of new home sales from the 100 largest property companies declined 11% to 318 billion yuan ($43.8 billion) from a year earlier, according to preliminary data from the China Real Estate Information Corp. That follows a 1.2% gain in February. On a monthly basis, March’s sales were up 69% from February, the data show.
Weak domestic demand and a fragile job market continue to weigh on the real estate sector. While second-hand home transactions have edged up on the back of government support, buyers remain wary about developers’ ability to finish projects on time.
Property sales at Chinese developer Country Garden drop by over a third (Financial Times)
Sales at one of China’s largest property developers fell by more than a third last year as the country’s real estate market struggled to emerge from a slowdown now in its fourth year.
Revenues at Country Garden fell 37 per cent to Rmb253bn ($35bn), the biggest annual drop for the group since a nationwide property crisis began in 2021 with the collapse of developer Evergrande.
Country Garden narrowed its loss to Rmb32.8bn after a record Rmb178bn in 2023, which was driven by a series of writedowns.
The slump in sales, which followed a default on a dollar bond in 2023, echoes a host of concerning metrics across China’s property market, from falling home prices to declines in construction.
China Services Growth Picks Up but Unemployment Pressure Persists, Caixin PMI Shows (Caixin)
Growth in China’s services sector accelerated in March, but a shrinking job market and stubborn deflationary pressure remained concerns, according to a Caixin-sponsored survey published Thursday.
The Caixin China General Services Business Activity Index, which provides an independent snapshot of operating conditions in industries such as retail and tourism, came in at 51.9 in March, up 0.5 points from the previous month.
China's manufacturing hits 12-month high, driven by strong orders (Reuters)
China's manufacturing activity expanded at the fastest pace in a year in March, a factory survey showed on Monday, with new orders boosting production, giving the world's No. 2 economy some reprieve as it deals with an intensifying U.S. trade war.
The reading should reassure officials that recent fiscal support is bolstering the $18 trillion economy, which is also benefiting from foreign buyers frontloading purchases in anticipation of further U.S. trade curbs.
China’s export boom sparks record number of WTO disputes (Financial Times)
China was targeted by a record number of trade disputes at the World Trade Organization last year as the country’s booming exports swamped international markets and triggered objections from its trading partners.
Beijing was the subject of 198 trade investigation cases at the WTO in 2024, double its tally the previous year and accounting for nearly half of all disputes lodged at the global trade body, according to research by Peking University economics professor Lu Feng.
Chinese policymakers have relied on a surge in exports to sustain growth in the world’s second-biggest economy and offset weak domestic demand amid a years-long property sector slowdown. The country’s global trade surplus reached a record of near $1tn in 2024.
“If China’s economy can become more balanced for her own interests, it may also improve relations with other countries,” said Lu.
Analysts said US President Donald Trump’s tariff pressure on China would exacerbate trade pressures elsewhere, especially in developed countries, as targeted Chinese goods would flow into other markets.
BYD posts robust growth in car sales as it takes on Tesla globally (CNN)
Chinese electric vehicle champion BYD has reported a 60% surge in sales in the first quarter of the year as archrival Tesla stumbles.
The EV maker based in the southern Chinese megacity of Shenzhen sold just over one million new-energy vehicles in the first three months of 2025 – including battery-powered cars, hybrids and commercial vehicles – according to a CNN calculation based on its latest stock exchange filing. Its sales of pure EVs soared 39% to more than 416,000 units.
BYD has been on a roll. Just last week, it reported a record annual revenue of $107 billion last year. By contrast, Tesla’s 2024 revenue was $97.7 billion, and its annual deliveries declined for the first time last year by 1.1%.
The vast majority of BYD’s shipments last year were delivered to domestic customers with just 10% exported to overseas markets. As a result, investors and analysts are bullish on BYD’s growth potential as the automaker advances in markets like Europe, Southeast Asia and South America.
Tesla lags behind BYD for the second quarter in a row as Q1 China deliveries shrink 22% (SCMP)
Tesla’s first-quarter deliveries on the mainland fell to the lowest level in three years, slumping nearly 22 per cent as its Chinese rivals clipped at its heels with newer and more affordable electric vehicles (EV).
The US carmaker delivered 172,754 cars from its Shanghai Gigafactory 3 in the first three months of the year versus 220,876 units in the same period a year earlier, according to data from the China Passenger Car Association. The sales were also the lowest since the second quarter of 2022 when 122,100 cars were delivered. The deliveries include sales on the mainland and exports.
In March, deliveries jumped 157 per cent year on year to 78,828 units, after production of a refreshed Model Y was ramped up. On a monthly basis, deliveries fell 11.5 per cent from 89,064 units in February.
“Competition in the Chinese market remains fierce and Tesla’s sales in its major markets outside China are stuck in a downward spiral,” said Phate Zhang, founder of Shanghai-based EV data provider CnEVPost.
Chinese Auto Giants Dongfeng and Changan Are in Talks to Merge (The New York Times)
Two of China’s biggest state-owned automakers are in advanced discussions to merge, in a deal that would create a formidable manufacturer of cars and military vehicles but could also create problems for their American and Japanese partners.
Dongfeng Motor and Changan Automobile have conducted detailed talks on how to combine their operations and told their foreign partners of their intentions, said two people with detailed knowledge of the discussions who were not authorized to comment.
Although little known outside China, each company produces slightly more cars for its own brands and through joint ventures than global automakers like Mercedes-Benz or BMW. Dongfeng and Changan together make about five million cars a year — more than Ford Motor and almost as many as General Motors or Stellantis, the giant that owns Fiat, Chrysler and Peugeot.
Huawei 2024 revenue surges to near-record high on smartphone comeback (CNBC)
Huawei on Monday reported a sharp jump in 2024 revenue as its core telecommunications and consumer businesses accelerated.
Huawei reported revenue for 2024 of 862.1 billion Chinese yuan ($118.2 billion), a 22.4% year-on-year rise.
It is the company’s second-highest revenue figure ever, according to CNBC calculations, just shy of the record 891.4 billion yuan reported for 2020.
Net profit fell, however, to 62.6 billion yuan, a decline of 28% versus 2023. Huawei said this was a result of increasing investments.
It comes as the Chinese technology giant tries to adapt its business to deal with U.S. sanctions that have restricted its access to key technologies like semiconductors.
Xi Jinping’s Grand Bargain: Taming and Empowering China’s Private Enterprises (China Observers in Central and Eastern Europe)
The claim that Xi has always supported private business is no doubt tone-deaf. But rather than opposing private enterprise, Xi rejects liberal economic thought’s binary opposition between private and public forces. Instead, he sees the two as complementary forces serving national interests. In this sense, private companies can flourish as long as they support China’s development goals. Any deviation from this path is swiftly corrected.
Xi’s embrace of private businesses should therefore be seen as a declaration of victory. Private enterprises, once unchecked, have been brought under control, and are now ready to fully contribute to his vision of China as a self-reliant, technological superpower.
Walmart Keeps Price Pressure on Suppliers Due to Tariffs Despite China Pushback (Bloomberg)
Walmart Inc. is continuing to push Chinese suppliers to cut prices to offset President Donald Trump’s tariffs, even after Beijing officials summoned the US retailer’s executives last month to discuss the issue, according to people familiar with the matter.
The world’s largest retailer has not backed down from its requests to suppliers to cut prices by as much as 10% for each round of tariffs, essentially asking them to shoulder Trump’s duties, according to the people, who asked not to be identified as the information is private.
Walmart’s unchanging stance even after being summoned by government officials — and warned by state-affiliated social media of potential retaliation from Beijing — reflects the quandary for Chinese companies as Trump’s tariffs add stress on top of the slowing domestic economy.
The ongoing negotiations, which are common for Walmart and its vast network of vendors, also show the lengths to which American businesses are going to offset added costs.
Scroll, Sell, Evade: China Recovers Millions in Taxes From Streamers (Sixth Tone)
China’s tax authorities have recovered nearly 900 million yuan ($124 million) in unpaid taxes after auditing 169 online influencers in 2024.
At a press conference Tuesday marking the launch of China’s 34th annual National Tax Awareness Month, the State Taxation Administration (STA) underscored its efforts to combat tax evasion in high-risk industries and among high-profile individuals, including celebrities and online influencers.
Tech & Media
How Chinese companies skirt U.S. chip bans (Rest of World)
“[Export controls] are inherently leaky instruments,” Barath Harithas, a senior fellow at the Center for Strategic and International Studies who researches U.S. chip policy, told Rest of World. “You’re not going to be able to catch everyone.”
But the overall restrictions, although permeable, could earn the U.S. some “lead time” to advance its own AI technologies, before China eventually catches up on chipmaking, he said.
China’s SpaceSail is expanding where Elon Musk faces friction (Rest of World)
China’s satellite internet upstart seems to be taking aim at Starlink.
SpaceSail, a Chinese space company backed by the Shanghai municipal government, has been entering markets where Elon Musk has faced friction.
SpaceSail has launched around 90 satellites since last year. It is in talks with over 30 countries, with plans to have 648 satellites launched by the end of 2025, and 15,000 by 2030.
Currently, Musk’s Starlink has more than 7,000 satellites in orbit.
Xiaomi Driverless Technology in Focus After Fatal Electric Car Crash (The New York Times)
China’s Xiaomi, a consumer electronics giant turned automaker, said it was cooperating with a police investigation into a fatal crash involving one of its electric vehicles while the driver was using the car’s autonomous driving features.
A Xiaomi SU7 sedan drove into a concrete guardrail on an expressway in eastern China late Saturday at around 60 miles per hour, according to a post on Xiaomi’s official social media account. On Tuesday, local media published reports about the collision and ensuing fire, which killed three college students, along with pictures of the charred remains of the vehicle.
Xiaomi said the driver had deployed the company’s Navigate On Autopilot, an assisted-driving feature, while going around 70 m.p.h. on the expressway. The car was traveling at that speed when it reached a roadblock, because a portion of the road was under repair with traffic diverted into a different lane.
‘Millions of drivers need to be educated’ after fatal Xiaomi crash, analysts say (SCMP)
Chinese carmakers may be asking themselves whether they should put the brakes on the rapid proliferation of self-driving systems following a fatal car crash involving the autonomous-driving feature of Xiaomi’s SU7 electric vehicle (EV).
The accident that killed three people in east China’s Anhui province on Saturday has prompted the company to investigate the crash and review its driver-assistant technology, as CEO Lei Jun said Xiaomi would not dodge its responsibility. The country’s leading smartphone maker launched the hit SU7, its first car, last year.
Analysts said the tragedy should not be examined in isolation. Widespread use of preliminary self-driving technology, also known as navigation on autopilot (NOA), carries high safety risks because drivers lack knowledge about the system’s role, as well as relevant rules and regulations, they said.
“Millions of drivers need to be educated to properly use the NOA systems,” said David Zhang, general secretary of the International Intelligent Vehicle Engineering Association. “They have to be fully alert when the system is turned on, and the drivers are still responsible for their own and passengers’ safety.”
Microsoft shutters AI lab in Shanghai, signalling a broader pullback from China (SCMP)
Microsoft has closed its IoT & AI Insider Lab in Shanghai’s Zhangjiang hi-tech zone, marking the latest sign of the US tech giant’s retreat from China amid rising geopolitical tensions.
The Shanghai lab, meant to help with domestic development of the Internet of Things (IoT) and artificial intelligence (AI) technologies, closed earlier this year, according to people who work in the Zhangjiang AI Island area.
The lab was dark and unoccupied during a recent visit by the South China Morning Post, with the logo removed and office equipment cleared out.
The area houses the offices of several Big Tech firms, including German chipmaker Infineon Technologies and Chinese internet search giant Baidu.
TikTok to shut down Instagram rival on May 8 (TechNode)
TikTok will shut down its photo-sharing app, TikTok Notes, on May 8. Launched last year in Canada, Australia, and Vietnam, the app was seen as an Instagram rival but failed to gain traction. Users are being directed to Lemon8, another ByteDance-owned platform. TikTok did not give a specific reason for shutting down Notes, though low adoption may be a factor.
Science, Health & Environment
China to launch grid-connected car projects to balance power supply (Reuters)
China plans to launch pilot projects in nine cities that would use the country's growing fleet of electric vehicles as batteries to shore up power supply on the grid during spikes in demand, according to a government announcement on Wednesday.
The move follows on rules issued last year by state planner the National Development and Reform Commission (NDRC) to strengthen the integration of new energy vehicles with the grid amid concerns the rapid adoption of EVs would overwhelm the generation and transmission systems.
The majority of the 30 projects in cities including Beijing, Shanghai, Shenzhen and Guangzhou are vehicle-to-grid or V2G, according to the announcement by the NDRC and energy regulator.
Cars would act as batteries, storing power and sending it back into the grid. Grid-connected cars could also adjust their charging times to avoid peak periods and provide critical services such as frequency regulation.
Providing those services could potentially become an alternative revenue stream for homeowners or operators of charging stations.
Arts & Culture
Yangzhou fried beats + Brutal Girl Delusion ()
In this issue: beguiling handkerchief-wrapped electronic sounds, not one but three upbeat rock records, a post-rock soundtrack, forest-recorded ambient, and a post-punk trio who “talk about feminism and queer rights in a fierce voice”.
New Music 新唱片发行: TAILNIA 尾巴尼亚/ Where is the Zeitgeist?/散瞳散 (Live China Music)
A freshly unlocked treasure trove of experimental music - Wuhan-based label TAILNIA - led by experimental musician Ziyang (of Sweet Sister Session fame) - has unleashed a torrent of music in their first month of operation. With over ten releases in their catalogue already - it’s a DIY-heavy endeavor that one can’t help but appreciate - a series of live recordings and albums of musicians‘ personal recordings that grew out of a new experimental community that’s been growing across the country.
Sports
China secures mixed team gold at Diving World Cup in Guadalajara (Xinhua)
China claimed the opening gold medal in the mixed team event at the World Aquatics Diving World Cup in Guadalajara on Friday.
China's Chen Yuxi, Chen Yiwen, Wang Zongyuan, and Cheng Zilong combined for a total of 489.10 points to top the podium. Italy finished second with 416.45 points, followed by Germany with 396.20.
Events
Urban China Lecture Series Featuring Qiao Shitong — Neighborhood Democratization in Urban China (Fairbank Center for Chinese Studies)
April 8 @ 8:30 pm – 10:00 pm
Presented via Zoom
Based on six-year fieldwork across China including over 200 in-depth interviews, this book provides an ethnographic account of how hundreds of millions of Chinese homeowners practice democracy in and beyond their condominium complexes. Using interviews, survey data, and a comprehensive examination of laws, policies and judicial decisions, this book also examines how the party-state in China responds to the risks and benefits brought by neighborhood democratization.
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