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Nvidia shares surge as earnings beat despite chip export restrictions to China

By Tina Teng

Published on
29/05/2025 – 7:25 GMT+2

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Nvidia reported first-quarter earnings for fiscal year 2026 that exceeded market expectations and provided an upbeat outlook for the current quarter. This comes despite an estimated $8 billion (€7.1 billion) loss due to US chip export restrictions affecting sales to China.

Nvidia’s share price jumped nearly 5% in after-hours trading, placing it just 8% below its all-time high in January. Year-to-date, the stock is set to return to a positive return amid the price surge. Nvidia is now the world’s biggest company, surpassing Microsoft and Apple in market capitalisation.

“Investors entered this quarter looking for signs that Nvidia could alleviate short-term concerns. What they received was a clear message that demand remains robust,” said Josh Gilbert, a market analyst at eToro Australia.

Upbeat earnings results

Sales revenue from Nvidia’s core business, data centres, increased by 73% year-on-year to $39.1 billion (€34.7 billion), reaching a new record. However, this represented a deceleration from 93% growth in the previous quarter. Despite the slower pace, the result aligned with market expectations, as some analysts had anticipated weaker figures due to regulatory headwinds.

Overall revenue rose 69% to $44.1 billion (€39.2 billion), while earnings per share came in at $0.96 (€0.85), both ahead of expectations. CEO Jensen Huang attributed the sustained growth to strong global demand for artificial intelligence (AI), particularly from major cloud service providers. Nvidia’s most advanced AI chip, Blackwell, “is now in full-scale production across system makers and cloud service providers,” said Huang.

“Global demand for Nvidia’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognising AI as essential infrastructure—just like electricity and the internet—and Nvidia stands at the centre of this profound transformation,” he added.

Impact of China-related restrictions

The company expects revenue of $45 billion (€40 billion), plus or minus 2%, for the current quarter. “This outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations,” it stated.

The US government required Nvidia to obtain export licences for its H20 GPUs destined for China during the first quarter. Although the H20 chips had previously been approved, the new rules led to $4.5 billion (€4 billion) in write-downs due to excess inventory. Without this, the company would have generated an additional $2.5 billion (€2.2 billion) in sales.

As a result, Nvidia’s gross margin for the first quarter stood at 61%. It would have been 71.3% had the charges not occurred. “The $50 billion China market is effectively closed to

the US industry,” Huang said. “As a result, we are taking a multibillion-dollar write-off on inventory that cannot be sold or repurposed.”

Nvidia expects a non-GAAP gross margin of 72.0%, plus or minus 50 basis points, for the current quarter. For context, the margin was 73.5% in the fourth quarter of 2024 and 79% during the same quarter of the previous fiscal year.

In an interview with Bloomberg TV, Huang noted that Nvidia is exploring alternatives to the H20 chip. However, the company must obtain approval from the US government for any such measures.

US factory and Middle East venture

Nvidia is among the tech giants supporting President Donald Trump’s ambitious AI initiatives in the United States, announced in January. The company also unveiled a partnership with Saudi Arabia’s HUMAIN to build AI factories in the kingdom during a recent visit to the region that coincided with Trump’s trip. These developments were highlighted in the earnings report in the section for data centre.

“While sales in China are clouded by export restrictions, the Middle East looks set to become the new launchpad for Nvidia’s next phase of growth,” Gilbert added.

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China launches landmark mission to retrieve pristine asteroid samples | Space News

Chinese state media says the mission aims ‘to shed light on the formation and evolution of asteroids’ and the Earth.

China has successfully launched a spacecraft as part of its first-ever mission to retrieve pristine asteroid samples, in what researchers have described as a “significant step” in Beijing’s ambitions for interplanetary exploration.

China’s Long March 3B rocket lifted off at about 1.31am local time (18:30 GMT) on Thursday from the Xichang Satellite Launch Centre in southwest China’s Sichuan province. It was carrying the Tianwen-2 spacecraft, a robotic probe that could make China the third nation to fetch pristine asteroid rocks.

Announcing the launch, Chinese state-run news outlets said the “spacecraft unfolded its solar panels smoothly”, and that the China National Space Administration (CNSA) had “declared the launch a success”.

Over the next year, Tianwen-2 will approach a small near-Earth asteroid some 10 million miles (16 million km) away, named “469219 Kamoʻoalewa”, also known as 2016HO3.

The spacecraft is scheduled to arrive at the asteroid, which researchers believe is potentially a fragment of the Moon, in July 2026. It will then shoot the capsule with rock samples back to Earth for a landing in November 2027.

If successful, China would become only the third country to carry out such a mission after Japan first fetched samples from a small asteroid in 2010, followed by the United States in 2020.

The People’s Daily state-run newspaper described the mission’s purpose as an “endeavour to shed light on the formation and evolution of asteroids and the early solar system”.

The newspaper quoted Shan Zhongde, the head of the CNSA, as saying that the mission represented a “significant step in China’s new journey of interplanetary exploration”. He added that the mission was expected to yield “groundbreaking discoveries and expanding humanity’s knowledge of the cosmos”.

The mission has multiple goals over the “decade-long expedition”, according to Chinese state media, including “collecting samples from near-Earth asteroid 2016HO3” and “exploring the main-belt comet 311P”.

It will also aim to measure the “physical parameters of the two celestial targets”, including their “orbital dynamics, rotation, size, shape and thermal properties”.

The samples will be used to determine the “physical properties, chemical and mineral composition and structural characteristics” of asteroids, according to researchers working on the project.

As a quasi-satellite of Earth that has orbited the Sun in a synchronised path with the Earth for nearly a century, 2016HO3 has a diameter of between 120 feet (40 metres) and 300 feet (100 metres).

China has swiftly expanded its space programmes and embarked on several landmark missions in recent years, including landing robots on the far side of the Moon and collecting humankind’s first-ever samples from the area in June last year.

China is also running its own Tiangong space station in orbit – the only operational space station other than the International Space Station (ISS) – after the US barred it from participating in the ISS.

In April, three crew members landed back in the country’s north after spending six months on board Tiangong in what was the longest-ever mission in space by Chinese astronauts.

Beijing has also invested heavily in planned crewed missions to the Moon that would see Chinese astronauts on the lunar surface by 2030.

The US has also stated its aim to put astronauts back on the Moon for the first time since 1972, with NASA planning to launch its Artemis 3 mission in 2026 at the earliest.

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Marco Rubio says US will begin revoking visas of Chinese students | Donald Trump News

DEVELOPING STORY,

The US will also ‘enhance scrutiny of all future visa applications’ from China and Hong Kong, the State Department said.

The United States will “aggressively revoke” the visas of Chinese students studying in the US, Secretary of State Marco Rubio has announced, as the Trump administration continues its crackdown on foreign students enrolled at higher education institutions in the country.

Rubio announced the shock move both in a post on X, as well as a statement published late on Wednesday titled “New Visa Policies Put America First, Not China”.

“Under President Trump’s leadership, the US State Department will work with the Department of Homeland Security to aggressively revoke visas for Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields,” the statement said.

“We will also revise visa criteria to enhance scrutiny of all future visa applications from the People’s Republic of China and Hong Kong,” it added.

Rubio’s announcement added to the uncertainty for international students in the US, who have faced intensifying scrutiny over recent months amid the administration’s wider assault on higher education institutions.

On Tuesday, the White House also temporarily suspended the processing of visas for foreign students, ordering embassies and consulates not to allow any additional student or exchange visas “until further guidance is issued”.

The State Department also said it plans to “issue guidance on expanded social media vetting for all such applications”.

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Trump tells US chip design software makers to halt China sales: Report | Technology News

US electronic design automation software makers were told via letters to stop supplies to China, the FT reported.

United States President Donald Trump’s administration has ordered US firms that offer software used to design semiconductors to stop selling their services to Chinese groups, the Financial Times has reported, citing people familiar with the move.

Electronic design automation software makers, which include Cadence, Synopsys and Siemens EDA, were told via letters from the US Commerce Department to stop supplying their tech, the report, which was published on Wednesday, said.

A spokesperson for the Commerce Department declined to comment on the letters but said it is reviewing exports of strategic significance to China, while noting that, “in some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending”.

Shares of Cadence, which declined to comment, closed down by 10.7 percent, while shares of Synopsys fell by 9.6 percent.

Synopsys CEO Sassine Ghazi said in a call with analysts that the company had not received a letter, nor had it heard from the Commerce Department’s Bureau of Industry (BIS) and Security, which enforces export controls.

“We are aware of the reporting and speculations, but Synopsys has not received a notice from BIS. So, our guidance that we are reiterating for the full year, reflects our current understanding of BIS export restrictions as well as our expectations for year-over-year decline in China. We have not received a letter,” Ghazi said.

After the market closed, Synopsys reaffirmed its revenue forecast for 2025. Its shares and those of Cadence bounced back 3.5 percent in trading after the close.

Siemens EDA did not immediately respond to a request for comment.

The software of these firms is used to design both high-end processors as well as simpler products.

While the scope of the policy change described in the report was not immediately clear, any move to strip the software makers of their Chinese customers could deal a blow to their bottom line and to their Chinese chip design customers, which heavily rely on top-of-the-line US software.

“They are the true choke point,” said a former Commerce Department official, who added that rules restricting the export of EDA tools to China have been under consideration since the first Trump administration, but were ruled out as too aggressive.

Synopsys relies on China for about 16 percent of its annual revenue, while China accounts for about 12 percent of annual revenue for Cadence.

Synopsys, which partners with chip companies such as Nvidia, Qualcomm and Intel, provides software and hardware used for designing advanced processors.

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‘Tidal wave’: How 75 nations face Chinese debt crisis in 2025 | Business and Economy News

Many of the world’s poorest countries are due to make record debt repayments to China in 2025 on loans extended a decade ago, at the peak of Beijing’s Belt and Road Initiative, a report by the Sydney-based Lowy Institute think tank has found.

Under the Belt and Road Initiative (BRI), a state-backed infrastructure investment programme launched in 2013, Beijing lent billions of dollars to build ports, highways and railroads to connect Asia, Africa and the Americas.

But new lending is drying up. In 2025, debt repayments owed to China by developing countries will amount to $35bn. Of that, $22bn is set to be paid by 75 of the world’s poorest countries, putting health and education spending at risk, Lowy concluded.

“For the rest of this decade, China will be more debt collector than banker to the developing world,” said Riley Duke, the report’s author.

“Developing countries are grappling with a tidal wave of debt repayments and interest costs to China,” Duke said.

What did the report say?

China’s BRI, the biggest multilateral development programme ever undertaken by a single country, is one of President Xi Jinping’s hallmark foreign policy initiatives.

It focuses primarily on developing country infrastructure projects like power plants, roads and ports, which struggle to receive financial backing from Western financial institutions.

The BRI has turned China into the largest global supplier of bilateral loans, peaking at about $50bn in 2016 – more than all Western creditors combined.

According to the Lowy report, however, paying off these debts is now jeopardising public spending.

“Pressure from Chinese state lending, along with surging repayments to a range of international private creditors, is putting enormous financial strain on developing economies.”

High debt servicing costs can suffocate spending on public services like education and healthcare, and limit their ability to respond to economic and climate shocks.

The 46 least developed countries (LDCs) spent a significant share – about 20 percent – of their tax revenues on external public debt in 2023. Lowy’s report implies this will increase even more this year.

For context, Germany used 8.4 percent of its budget to repay debt in 2023.

Lowy also raised questions about whether China will use these debts for “geopolitical leverage” in the Global South, especially with Washington slashing foreign aid under President Donald Trump.

“As Beijing shifts into the role of debt collector, Western governments remain internally focused, with aid declining and multilateral support waning,” the report said.

While Chinese lending is also beginning to slow down across the developing world, the report said there were two areas that seemed to be bucking the trend.

The first was in nations such as Honduras, Burkina Faso and Solomon Islands, which received massive new loans after switching diplomatic recognition from Taiwan to China.

The other was in countries such as Indonesia and Brazil, where China has signed new loan deals to secure critical minerals and metals for electric batteries.

How has China responded?

Beijing’s Ministry of Foreign Affairs said it was “not aware of the specifics” of the report but that “China’s investment and financing cooperation with developing countries abides by international conventions”.

Ministry spokesperson Mao Ning said “a small number of countries” sought to blame Beijing for miring developing nations in debt but that “falsehoods cannot cover up the truth”.

For years, the BRI has been criticised by Western commentators as a way for Beijing to entrap countries with unserviceable debt.

An often-cited example is the Hambantota port – located along vital east-west international shipping routes – in southern Sri Lanka.

Unable to repay a $1.4bn loan for the port’s construction, Colombo was forced to lease the facility to a Chinese firm for 99 years in 2017.

China’s government has denied accusations it deliberately creates debt traps, and recipient nations have also pushed back, saying China was often a more reliable partner than the West and offered crucial loans when others refused.

Still, China publishes little data on its BRI scheme, and the Lowy Institute said its estimates, based on World Bank data, may underestimate the full scale of China’s lending.

In 2021, AidData – a US-based international development research lab – estimated that China was owed a “hidden debt” of about $385bn.

Does the Lowy report lack ‘context’?

Challenging the “debt-trap” narrative, the Rhodium consulting group looked at 38 Chinese debt renegotiations with 24 developing countries in 2019 and concluded that Beijing’s leverage was limited, with many of the renegotiations resolved in favour of the borrower.

According to Rhodium, developing countries had restructured roughly $50bn of Chinese loans in the decade before its 2019 study was published, with loan extensions, cheaper financing and debt forgiveness the most frequent outcomes.

Elsewhere, a 2020 study by the China Africa Research Initiative at Johns Hopkins University found that, between 2000 and 2019, China cancelled $3.4bn of debt in Africa and a further $15bn was refinanced. No assets were seized.

Meanwhile, many developing countries remain in hock to Western institutions.

In 2022, the Debt Justice Group estimated that African governments owed three times more to private financial groups than to China, charging double the interest in the process.

“Developing country debt to China is less than what is owed to both private bondholders and multilateral development banks (MDBs),” says Kevin Gallagher, director of the Boston University Global Development Policy Center.

“So, Lowy’s focus on China lacks context. The truth is, even if you remove China from the creditor picture, lots of poor countries would still be in debt distress,” Gallagher told Al Jazeera.

Following the COVID-19 pandemic and Russia’s invasion of Ukraine, inflation prompted the United States Federal Reserve, as well as other leading central banks, to hike interest rates.

Attracted to higher yields in the US, investors withdrew their funds from developing country financial assets, raising yield costs and depreciating currencies. Debt repayment costs soared.

Global interest rates have since come down slightly. But according to the UN, developing country borrowing costs are, on average, two to four times higher than in the US and six to 12 times higher than in Germany.

“A crucial aspect about Chinese lending,” said Gallagher, “is that it tends to be long-term and growth enhancing. That’s precisely why a lot of it is focused on infrastructure investment. Western lenders tend to get in and out faster and charge higher rates.”

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Czech Republic blames China for cyberattack on foreign ministry

A Chinese national flag flies in front of a new, modern business complex in Beijing on August 15, 2013. China’s construction boom could be stalling out, according to Societe Generale, which sounded a warning last week that recent softening in demand for cement and earth-moving equipment could be an early warning sign. UPI/Stephen Shaver | License Photo

May 28 (UPI) — The Czech Republic accused China on Wednesday of being responsible for a “malicious cyber campaign” that targeted an unclassified network of the foreign ministry.

Little information about the cyberattack was made public, the Czech government said it began in 2022, affected an institution designated as Czech critical infrastructure and that it was perpetrated by well-known China-backed hackers APT31.

“The Government of the Czech Republic strongly condemns this malicious cyber campaign against its critical infrastructure,” the Czech foreign affairs ministry said in a statement.

“Such behavior undermines the credibility of the People’s Republic of China and contradicts its public declarations.”

APT31, which stands for Advanced Persistent Threat Group 31, is a collection of China state-sponsored intelligence officers, contract hackers and support staff that conduct cyberattacks on behalf of the Chinese government.

Seven Chinese nationals were charged in the United States in late March for their involvement in APT31, which federal prosecutors said has targeted U.S. and foreign critics of the Chinese government, business, and political officials over the last 14 years.

The Czech government said Wednesday it tied APT31 to the cyberattack through an “extensive investigation,” which “led to a high degree of certainty about the responsible actor.”

“The Government of the Czech Republic has identified the People’s Republic of China as being responsible,” it said.

NATO and the European Union — both of which Czech is a member of — were quick to condemn China following Prague’s revelation.

“We stand in solidarity with the Czech Republic following the malicious cyber campaign against its Ministry of Foreign Affairs,” the security alliance said in a statement.

NATO did not blame China but acknowledged the Czechs’ accusation of Beijing for the attack and said that it has observed “with increasing concern the growing pattern of malicious cyber activities stemming from the People’s Republic of China.”

Similarly, the EU did not directly point the finger at China for the attack on the Czech Republic, but said there have been cyberattacks linked to Beijing targeting EU and its member stats.

“In 2021, we urged Chinese authorities to take action against malicious cyber activities undertaken from their territories. Since then, several Member States have attributed similar activities at their national level,” the EU’s high representative, Kaja Kallas, said in a statement.

“We have repeatedly raised our concerns during bilateral engagements and we will continue to do so in the future.”

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Gulf states, China take centre stage at summit of Southeast Asian nations | International Trade News

The Gulf Cooperation Council (GCC), China and the 10-member Association of Southeast Asian Nations (ASEAN) agreed to “chart a unified and collective path towards a peaceful, prosperous, and just future”, following their meeting in the Malaysian capital, Kuala Lumpur.

In a world roiled by United States President Donald Trump’s threats of crippling tariffs and rising economic uncertainties, alternative centres of global power were on full display, with the GCC and China attending the ASEAN summit for the group’s inaugural trilateral meeting on Tuesday.

In their joint statement released on Wednesday, the GCC – comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – China, and ASEAN members Indonesia, Singapore, Malaysia, Thailand, Vietnam, Philippines, Brunei, Cambodia, Laos and Myanmar said they were committed to enhancing economic cooperation.

Chief among that cooperation will be the promotion of free trade, the signatories said, adding they looked “forward to the early completion of the GCC-China Free Trade Agreement negotiations” and the upgrading of the ASEAN-China free trade area.

“We reaffirm our collective resolve to work hand in hand to unleash the full potential of our partnership, and ensure that our cooperation translates into tangible benefits for our peoples and societies,” they said.

Secretary General of the Gulf Cooperation Council (GCC) Jasem Albudaiwi, Myanmar's Permanent Secretary of the Ministry of Foreign Affairs Aung Kyaw Moe, Laos' Prime Minister Sonexay Siphandone, Singapore's Prime Minister Lawrence Wong, Saudi Arabian Foreign Minister Faisal bin Farhan Al Saud, Thailand's Prime Minister Paetongtarn Shinawatra, Qatar's Emir Tamim bin Hamad Al Thani, Vietnam's Prime Minister Pham Minh Chinh, Kuwait's Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah, Malaysia's Prime Minister Anwar Ibrahim, Philippines' President Ferdinand Marcos Jr, UAE Supreme Council Member and Ruler of Ras Al Khaimah, Sheikh Saud bin Saqr Al Qasimi, Brunei's Sultan Hassanal Bolkiah, Bahrain's Crown Prince Salman bin Hamad Al Khalifa join hands for a group photo as they attend the 2nd ASEAN-GCC Summit at the Kuala Lumpur Convention Centre in Kuala Lumpur, Malaysia, May 27, 2025. REUTERS/Hasnoor Hussain
ASEAN and GCC members join hands for a group photo as they attend the 2nd ASEAN-GCC Summit at the Kuala Lumpur Convention Centre in Kuala Lumpur, Malaysia, on May 27, 2025 [Hasnoor Hussain/Reuters]

Malaysia’s Prime Minister Anwar Ibrahim – whose country is currently chair of ASEAN and hosted the summits – told a news conference that the US remains an important market while also noting that ASEAN, the GCC, and China collectively represent a combined gross domestic product (GDP) of $24.87 trillion with a total population of about 2.15 billion.

“This collective scale offers vast opportunities to synergise our markets, deepen innovation, and promote cross-regional investment,” Anwar said.

The prime minister went on to dismiss suggestions that the ASEAN bloc of nations was leaning excessively towards China, stressing that the regional grouping remained committed to maintaining balanced engagement with all major powers, including the US.

James Chin, professor of Asian studies at the University of Tasmania in Australia, told Al Jazeera that the tripartite meeting was particularly important for China, which is being “given a platform where the US is not around”.

ASEAN and the GCC “already view China as a global power”, Chin said.

‘The Gulf is very rich, ASEAN is a tiger, China…’

China’s Premier Li Qiang, who attended the summit, said Beijing was ready to work with the GCC and ASEAN “on the basis of mutual respect and equality”.

China will work with “ASEAN and the GCC to strengthen the alignment of development strategies, increase macro policy coordination, and deepen collaboration on industrial specialisation,” he said.

Former Malaysian ambassador to the US Mohamed Nazri bin Abdul Aziz said China was “quickly filling up the vacuum” in global leadership felt in many countries in the aftermath of Trump’s tariff threats.

Malaysia's Prime Minister Anwar Ibrahim poses for photos with China's Premier Li Qiang ahead of the ASEAN - Gulf Cooperation Council (GCC) - China Summit, after the 46th Association of Southeast Asian Nations (ASEAN) Summit, in Kuala Lumpur, Malaysia May 27, 2025. MOHD RASFAN/Pool via REUTERS
Malaysia’s Prime Minister Anwar Ibrahim, right, poses for photos with China’s Premier Li Qiang before the ASEAN-Gulf Cooperation Council (GCC)-China Summit in Kuala Lumpur, Malaysia, on Tuesday [Mohd Rasfan/Pool via Reuters]

The economic future looks bright, Nazri said, for ASEAN, China and the Gulf countries, where economies are experiencing high growth rates while the US and European Union face stagnation.

“The Gulf is very rich, ASEAN is a tiger, China… I cannot even imagine where the future lies,” Nazri said.

Jaideep Singh, an analyst with the Institute of Strategic & International Studies in Malaysia, said ASEAN’s trade with GCC countries has been experiencing rapid growth.

Total trade between ASEAN and the Gulf countries stood at some $63bn as of 2024, making GCC the fifth-largest external trading partner of the regional bloc, while Malaysia’s trade with the GCC grew by 60 percent from 2019 to 2024.

In terms of foreign direct investment, FDI from GCC countries in ASEAN totalled some $5bn as of 2023, of which $1.5bn went to Malaysia alone, Singh said.

However, the US, China, Singapore and the EU still make up the lion’s share of FDI in Malaysian manufacturing and services.

US still ASEAN’s biggest export market

Even as China’s trade with ASEAN grows, economist say, the US still remains a huge market for regional countries.

In early 2024, the US took over China as ASEAN’s largest export market, with 15 percent of the bloc’s exports destined for its markets, up nearly 4 percent since 2018, said Carmelo Ferlito, CEO of the Center for Market Education (CME), a think tank based in Malaysia and Indonesia.

“The US is also the largest source of cumulative foreign direct investment in ASEAN, with total stock reaching nearly $480bn in 2023 – almost double the combined US investments in China, Japan, South Korea, and Taiwan,” Ferlito said.

Israel’s war on Gaza was also highlighted at the ASEAN-GCC-China meeting on Tuesday.

Delegates condemned attacks against civilians and called for a durable ceasefire and unhindered delivery of fuel, food, essential services, and medicine throughout the Palestinian territory.

Supporting a two-state solution to the conflict, the joint communique also called for the release of captives and arbitrarily-detained people, and an end to the “illegal presence of the State of Israel in the occupied Palestinian territory as soon as possible”.

The civil war in Myanmar was also a focus of the talks among ASEAN members at their summit on Tuesday, who called for an extension and expansion of a ceasefire among the warring sides, which was declared following the earthquake that struck the country in March. The ceasefire is due to run out by the end of May. However, human rights groups have documented repeated air attacks by the military regime on the country’s civilian population despite the purported temporary cessation of fighting.

Zachary Abuza, professor of Southeast Asia politics and security issues at the Washington-based National War College, said that while Prime Minister Anwar may be “more proactive” – in his role as ASEAN chair – in wanting to resolve the conflict, Myanmar’s military rulers were “not a good faith actor” in peace talks.

“The military has absolutely no interest in anything resembling a power-sharing agreement,” he said.

 

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China hosts Pacific Island nations in bid to bolster diplomatic, trade ties | News

Foreign minister Wang Yi is meeting top diplomats from 11 Pacific nations in the Chinese city of Xiamen.

China is hosting a high-level meeting with 11 Pacific Island nations as it seeks to deepen ties and build what it calls a “closer” community with “a shared future” in the strategic region.

Chinese Foreign Minister Wang Yi is chairing the meeting in the city of Xiamen on Wednesday.

The president of Kiribati, Taneti Maamau, and top diplomats from Niue, Tonga, Nauru, Micronesia, Solomon Islands, Vanuatu, Papua New Guinea, Cook Islands, Fiji and Samoa are attending.

The two-day meeting is the third such gathering, but the first to happen in person in China.

Al Jazeera’s Katrina Yu, reporting from Beijing, said the diplomats are expected to discuss trade, infrastructure development, poverty alleviation, sustainability and climate change.

“For China, this is an opportunity to extend its influence and expand economic ties at a time when the United States is showing very little interest in this region, and we know increasingly that many of those countries are more aligned on China on things like investment, infrastructure, trade and even security assistance,” she said.

Global uncertainty

The meeting comes as United States President Donald Trump’s cuts to foreign aid and the threat of tariffs fuel global uncertainty. Analysts say this has left the door open for China to step in.

“This lack of certainty makes the US a very challenging partner to work with,” said Tess Newton at the Griffith Asia Institute. “Whereas other partners including China can offer, well you know we were here yesterday, we’re here today, and we expect to be here tomorrow.”

The Chinese foreign ministry, announcing the meeting last week, said the objective of the meeting was to “jointly build an even closer China-Pacific Island countries community with a shared future”.

Analysts say that for Beijing, that translates to greater economic aid, diplomatic engagement and the pursuit of a regional security pact.

China has already signed a security accord with the Solomon Islands in 2022, a year after deploying police to the ground in the capital, Honiara, following a series of riots there.

Beijing has also sent advisers to Vanuatu and Kiribati and wants to lock in a similar pact with other island nations.

“What China is trying to do … is to insert itself as a security player and in some cases through the angle of contributing to the individual security needs of Pacific countries such as policing,” said Mihai Sora, director of the Pacific Islands Program at the Lowy Institute in Australia.

The meeting in Xiamen is “an opportunity for China” to push its goals “in its own space, on its own turf and on its own terms,” he added.

Taiwan

The topic of Taiwan, the self-ruled island that China claims as its own and lies off the coast of Xiamen, is also expected to be discussed at this meeting.

China has been gradually whittling away at the number of countries in the Pacific that retain ties with Taiwan, and in January of last year, Nauru also switched recognition to Beijing.

Taiwan now has three remaining allies in the region – Marshall Islands, Palau and Tuvalu.

Al Jazeera’s Yu said the region is of strategic, military and diplomatic significance for China.

“If you look at the region, these countries are very small, their economies are small and only one of them has a population that exceeds one million. That is Papua New Guinea,” she said.

“But the region is strategically extremely important to Beijing because it’s home to crucial shipping lanes, deep sea cables, deep sea ports and potential mineral deposits underwater. Militarily, it could be strategically important, because if there could be any conflict in the future, this area could be important in terms of launching potential forward attacks on US territory, and also US ally Australia is very close by.”

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Trump says Canada will pay $61bn for Golden Dome, or become 51st state | Donald Trump News

Trump’s latest comments come as China, North Korea, Russia say the Golden Dome missile defence system will create ‘space arms race’.

United States President Donald Trump says he has told Canada it will have to pay $61bn to be part of his proposed Gold Dome missile defence system “if they remain a separate, but unequal, Nation”.

In a post on TruthSocial, Trump claimed Canada “very much wants to be part of our fabulous Golden Dome System” and would gain free access if it joins with the US.

Participating in the proposed defence system would cost Canada “ZERO DOLLARS if they become our cherished 51st State”, Trump said, adding, “They are considering the offer!”

Trump’s post came just hours after Canada’s parliament hosted the UK’s King Charles III for a rare royal speech in which the monarch emphasised Canada’s sovereignty in “dangerous and uncertain” times, and amid the US president’s exhortations for the country to become part of the US.

Following the king’s speech, Canadian Prime Minister Mark Carney told Canadian Public broadcaster CBC that he hopes Canada will join ReArm Europe by July 1, in an effort to reduce dependence on the US for weapons.

Canada did not immediately respond to Trump’s latest comment, but Carney has previously confirmed his country has held “high-level” talks on the defence system issue with the US.

Funding, timeline uncertain

In total, Trump has claimed the Golden Dome system will cost some $175bn and would be completed by the end of his current term in 2029, although defence industry experts have questioned the feasibility of this timeline and budget.

Trump is hoping to secure an initial $25bn funding for the system through the sweeping “Big, Beautiful Bill” which is next to go up for a vote in the Senate after narrowly passing the Republican-controlled US House of Representatives last week.

The bill boosts spending on the military and border enforcement while cutting funding for social programmes, including Medicaid and food assistance that helped tens of millions of low-income Americans.

WASHINGTON, DC - MAY 12: White House press secretary Karoline Leavitt looks on from behind a chart on prescription drug costs and posters depicting a "Golden Dome for America" as U.S. President Donald Trump speaks during a press conference in the Roosevelt Room of the White House on May 12, 2025, in Washington, DC. During the event, President Trump signed an executive order aimed at reducing the cost of prescription drugs and pharmaceuticals by 30% to 80%. Andrew Harnik/Getty Images/AFP (Photo by Andrew Harnik / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
White House Press Secretary Karoline Leavitt looks on from behind posters depicting a ‘Golden Dome for America’ missile defence system [Andrew Harnik /Getty Images via AFP]

The Golden Dome is modelled after Israel’s Iron Dome, which also receives significant funding from the US, including $500m per year for its upkeep.

It is unclear how Trump would scale up the Iron Dome to cover the entire US, since Israel is only about the size of New Jersey, one of the smaller states in the US.

The Iron Dome is also designed to target short-range missiles, with a range of 1,000km (about 620 miles), while the main threat to the US would likely come from long-range ballistic and hypersonic missiles.

Israel's defence system

Golden Dome will create ‘space arms race’

China, North Korea and Russia have all criticised Trump’s plan to put weapons in space, which the US president described in detail for the first time last week.

China’s Ministry of Foreign Affairs swiftly responded, with spokeswoman Mao Ning saying the plan “heightens the risk of space becoming a battlefield, fuels an arms race, and undermines international security”.

“The United States puts its own interests first and is obsessed with seeking its own absolute security, which violates the principle that no country’s security should come at the expense of others,” Mao Ning said.

North Korea’s Ministry of Foreign Affairs also responded, saying the US is “hell-bent on the moves to militarise outer space”.

Russian Foreign Ministry spokeswoman Maria Zakharova said on Tuesday that the Golden Dome project undermines the foundations of “strategic stability” as it involves the creation of a global missile defence system.

According to Russia’s state news agency TASS, Zakharova said developing the Golden Dome would also lead to development of the “means of pre-launch missile destruction and infrastructure that ensures their use”.

“This is already a literal manifestation of the US’s highly dangerous doctrinal course toward delivering so-called preventive, but essentially first strikes,” she said, warning it would turn space into a “weaponised environment” and an “arena of armed confrontation”.

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Watch moment worker runs for his life & dodges death by just inches as chemical tanks explode around him killing five

THIS is the shocking moment a massive explosion shook a chemical plant in eastern China’s Shandong province.

Terrifying footage shows the moment of the eruption at the Gaomi Youdao Chemical plant in the city of Weifang at around midday local time.

Worker on platform near industrial smoke plume.

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An explosion at a chemical plant in the eastern Chinese province of Shandong killed at least five people
Large containers engulfed in flames.

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The blast occurred a few minutes before noon local time

Images show the roaring inferno followed by billows of black smoke rising high into the sky.

Emergency Services sent more than 230 firefighters and 55 vehicles to the scene to try and bring the blaze caused by the explosion under control.

The explosion killed at least five people while 19 are reportedly injured, according to local emergency management authorities.

A further six people are currently missing.

A local resident told the The Associated Press news agency that his home – located than 7km (4.3 miles) from the plant – shook from the impact of the explosion.

The plant manufactures pesticides as well as chemicals for medical use, and has more than 500 employees, according to corporate registration records.

Local fire officials sent more than 230 personnel to the scene, according to state broadcaster China Central Television.

Workplace safety has improved over the years in China but remains a stubborn problem.

The National Ministry of Emergency Management recorded 21,800 incidents and 19,600 deaths in 2024.

A recent spate of such accidents has prompted calls from President Xi Jinping for “deep reflection” and greater efforts to stop them.

Horror moment dirty water pipe EXPLODES near tourists’ balconies on Costa Del Sol

Last month, at least 15 people were killed and 44 injured in a fire at a residential building in the eastern city of Nanjing.

In January, dozens died after a fire broke out at a store in the central city of Xinyu, with state news agency Xinhua reporting the blaze had been caused by the “illegal” use of fire by workers in the store’s basement.

That fire came just days after a late-evening blaze at a school in central Henan province killed 13 schoolchildren as they slept in a dormitory.

Domestic media reports suggested the fire was caused by an electric heating device.

Meanwhile, a deadly explosion ripped through a fried chicken shop in northern China, killing two people and injuring 26 more last year.

Shops, homes, and cars were completely destroyed in the horror blast, which is believed to have been caused by a gas leak, according to state reported at the time.

Large explosion at an industrial facility.

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Windows of nearby buildings were ripped from their hinges by the explosion

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ASEAN kicks off summits with China, Gulf states amid US tariff threat | News

Southeast Asian leaders are set to hold their first ever summit with China and the six-member Gulf Cooperation Council (GCC), as they seek to insulate their trade-dependent economies from the effect of steep tariffs from the United States.

The meeting, in the Malaysian capital, Kuala Lumpur, is taking place on Tuesday, on the second day of the annual summit of the 10-member Association of Southeast Asian Nations (ASEAN).

It follows separate talks between leaders of the ASEAN and the GCC, which comprises of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Malaysian Prime Minister Anwar Ibrahim, opening the ASEAN-GCC summit, said stronger ties between the two blocs would be key to enhancing interregional collaboration, building resilience and securing sustainable prosperity.

“I believe the ASEAN-GCC partnership has never been more important than it is today, as we navigate an increasingly complex global landscape marked by economic uncertainty and geopolitical challenges,” Anwar said.

Malaysia is the current chair of ASEAN, which also includes Brunei, Cambodia, Laos, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

In written remarks before the meetings, Anwar said “a transition in the geopolitical order is underway” and that “the global trading system is under further strain, with the recent imposition of US unilateral tariffs.”

With protectionism surging, the world is also bearing witness to “multilateralism breaking apart at the seams”, he added.

China calls for stronger ties

China’s Premier Li Qiang, who arrived in Kuala Lumpur on Monday, will join ASEAN and the GCC in their first such meeting on Tuesday. He met with Anwar on Monday and called for expanded trade and investment ties between Beijing, ASEAN and the GCC.

“At a time when unilateralism and protectionism are on the rise and world economic growth is sluggish,” Li said, China, ASEAN and GCC countries “should strengthen coordination and cooperation and jointly uphold open regionalism and true multilateralism”.

China is willing to work with Malaysia to “promote closer economic cooperation among the three parties” and respond to global challenges, Li told Anwar.

ASEAN has maintained a policy of neutrality, engaging both Beijing and Washington, but US President Donald Trump’s threats of sweeping tariffs came as a blow.

Six of the bloc’s members were among the worst hit, with tariffs between 32 percent and 49 percent.

Trump announced a 90-day pause on tariffs in April for most of the world, and this month struck a similar deal with key rival China, easing trade war tensions.

Al Jazeera’s Rob McBride, reporting from Kuala Lumpur, said ASEAN members are “very much looking at building ties with other parts of the world, in particular China, but also the Middle East” to strengthen their economic resilience.

“A measure of the importance that the GCC is also placing on this meeting is the delegation that has been sent here and the seniority of its members,” he added. “The Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, is here, and we have crown princes from Kuwait and also Bahrain. We also have a deputy prime minister from Oman.”

Anwar said Monday he had also written to Trump to request an ASEAN-US summit this year, showing “we observe seriously the spirit of centrality.” However, his Foreign Minister Mohamad Hasan said Washington had not yet responded.

‘Timely, calculated’

ASEAN has traditionally served as “a middleman of sorts” between developed economies like the US and China, said Chong Ja Ian from the National University of Singapore (NUS).

“Given the uncertainty and unpredictability associated with economic relations with the United States, ASEAN member states are looking to diversify,” he told the AFP news agency.

“Facilitating exchanges between the Gulf and People’s Republic of China is one aspect of this diversification.”

Malaysia, which opened the bloc’s 46th summit on Monday, is the main force behind the initiative, he said.

China, which has suffered the brunt of Trump’s tariffs, is also looking to shore up its other markets.

Premier Li’s participation is “both timely and calculated”, Khoo Ying Hooi from the University of Malaya told AFP.

“China sees an opportunity here to reinforce its image as a reliable economic partner, especially in the face of Western decoupling efforts.”

Beijing and Washington engaged in an escalating flurry of tit-for-tat levies until a meeting in Switzerland saw an agreement to slash them for 90 days.

Chinese goods still face higher tariffs than most, though.

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Prince Harry makes surprise trip to China as King Charles lands in Canada for landmark state visit

PRINCE Harry made a shock solo appearance in China on the same day King Charles touched down in Canada for a state visit.

The Duke of Sussex attended a global travel and tourism conference in Shanghai where he discussed the importance of sustainable travel.

Prince Harry giving a speech at a summit.

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Prince Harry gave a speech at Trip.com Group’s Envision 2025 Global Partner Conference in ShanghaiCredit: Trip.com Group Envision 2025/Tra
Prince Harry speaking at a conference.

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Harry is co-founder of Travalyst, who strive to promote sustainable travel
King Charles III and Queen Camilla disembarking a plane in Canada.

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King Charles III and Queen Camilla arriving at MacDonald-Cartier International Airport in Ottawa, Canada on MondayCredit: AFP
King Charles III greeted by an honor guard in Ottawa.

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The King is greeted by an honour guard upon landingCredit: AFP

The Prince made the appearance on Monday as part of his role as co-founder of Travalyst, an organisation promoting environmentally friendly travel.

During his address to the Envision 2025 Global Partner Conference today, Harry told the travel industry it needed to do more to hit its climate change targets before 2030.

To limit global warming to 1.5°C, greenhouse gas emissions must peak before 2025 at the latest and decline 43% by the end of the decade.

He added that the Asia-Pacific region is “strongly positioned to do this”.

Speaking at the conference, he said: “Climate change isn’t just an environmental challenge – it’s a critical business emergency, costing the global economy $143 billion dollars annually.

“Now is the moment for the industry to reaffirm its commitment to being a force for good.

“Challenges will undoubtedly rise, but if there’s one thing I’ve learned in my life, it’s that meaningful change never comes easily.

“The true measure of our commitment is how we respond when the path becomes difficult.

“We must never give up.”

Harry’s trip to China, which was kept under wraps until his surprise appearance in Shanghai, is the first time the Duke has visited the country.

King Charles lands in Canada for landmark state visit

His brother, Prince William, made a similar diplomatic trip to China in 2015 — the first official royal visit in three decades.

The Duke’s Shanghai schedule also included hosting Travalyst’s first-ever two-day Executive Summit, gathering industry leaders and policymakers from across the region to hammer out practical solutions for greener tourism.

It marks the beginning of a global series aimed at turning pledges into action.

As Harry took to the stage in Shanghai, King Charles touched down in Canada also on Monday with Queen Camilla to attend The State Opening of the Parliament in Ottawa.

It marks the first time the monarch has done so since Queen Elizabeth in 1977.

In March, the King held a meeting with then-Canadian PM Justin Trudeau, after the Commonwealth leader faced pressure from the US.

Charles and Camilla were welcomed in Ottawa with cries of “welcome home” as they stepped off their RAF flight from the UK.

Their whirlwind two-day trip to Canada has been hailed as “momentous” — seen as a bold show of solidarity with the country as it locks horns with Donald Trump over sovereignty.

Prince Harry speaking at a conference.

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In Shanghai, the Duke of Sussex said that the Asia-Pacific region is ‘strongly positioned’ to help promote sustainable travel
Prince Harry speaking at Trip.com Group's Envision 2025 conference.

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Harry’s solo trip to China marks his first time in the country

Charles was previously reported to be “concerned” about the growing discord between the US and Canada.

The King and Queen were met at Ottawa’s airport by new Prime Minister Mark Carney, who swept to power following outrage over Trump calling Canada “America’s 51st state.”

Carney called the royal visit “a reminder of the bond between Canada and the Crown… shaped by shared histories, and grounded in common values.”

Charles, on his 20th visit to Canada, took time to meet crowds under the hot midday sun, hearing thanks and cheers from the public.

The King, who is head of state for Canada, is also expected to meet with Indigenous leaders and veterans during the trip, as part of ongoing efforts to strengthen ties and support reconciliation efforts.

Canadian Prime Minister Mark Carney greeting people at an airport.

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Canadian Prime Minister Mark Carney greets people after King Charles and Queen Camilla landed in OttawaCredit: AFP
Well-wishers waving Union Jack flags at a royal event.

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Well wishers wave flags before the arrival of the British monarchsCredit: AFP

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Russia-Ukraine war: List of key events, day 1,188 | News

Here’s where things stand on Tuesday, May 27:

Fighting:

  • Ukraine says Russia launched a record number of drones overnight on Monday, with President Volodymyr Zelenskyy describing the attacks as a sign that Moscow is “acting with impunity”.
  • Ukrainian air defences downed most of the 355 drones, but several broke through defences, causing casualties, according to authorities. Two elderly women were killed in Ukraine’s northeastern Kharkiv region, the regional governor said.
  • Russia, meanwhile, accused Ukraine of launching aerial attacks on its “social infrastructure”. The Ministry of Defence said it shot down at least 48 Ukrainian drones on Monday, after shooting down 96 overnight.
  • Russia’s state TASS news agency, citing the Defence Ministry, reported that Russian forces have taken over the villages of Volodymyrivka and Belovody in the northeastern region of Sumy.
  • The governor of Sumy said Russian forces had captured four other villages as part of an attempt to create a “buffer zone” on Ukrainian territory. He identified them as Novenke, Basivka, Veselivka and Zhuravka, and said that residents had long been evacuated.
  • The Ukrainian prosecutor general’s office said Russian attacks have killed 630 Ukrainian children and wounded 1,960 since the beginning of the war.
  • Russia’s Ministry of Foreign Affairs special envoy Rodion Miroshnik has accused the Ukrainian military of causing more than 400 civilian casualties in April, including with “inhumane methods of warfare”.

Military aid

  • German Chancellor Friedrich Merz announced that Ukraine’s key Western allies are no longer limiting the range of weapons they supply, a move the Kremlin said would be “dangerous”.
  • Ukraine says it has confirmed information that China is supplying a range of important products to Russian military plants, including tooling machines, special chemical products, gunpowder and components specifically to defence manufacturing industries.

Politics and diplomacy

  • The Kremlin responded to United States President Donald Trump’s remark that Putin has gone “absolutely crazy” over the scale of Russian air attacks, suggesting the US leader may be experiencing “emotional overload”.
  • It also said that serious work on Russia’s proposal for a possible peace deal for the war in Ukraine was ongoing and that a draft had not yet been submitted. “This is a serious draft, a draft of a serious document that demands careful checks and preparation,” spokesman Dmitry Peskov said.
  • Zelenskyy said Russia launched more than 900 drones as well as missiles towards Ukraine over three nights, and again called for intensified pressure on Moscow. “There is no military sense in this, but it is an obvious political choice – a choice by Putin, a choice by Russia – a choice to continue the war and destroy lives,” the Ukrainian leader said in his nightly video address.
  • French President Emmanuel Macron said he believes Trump is beginning to see that Putin “lied” to him about the war in Ukraine. He also called for the imposition of a deadline for Moscow to agree to a ceasefire, backed up by the threat of “massive sanctions”./li>
  • Danish Prime Minister Mette Fredericton also said that Russia’s attacks on Ukraine over the weekend proved that Moscow is not interested in peace.
  • Finland summoned Russia’s Helsinki ambassador to ask for an explanation regarding a suspected violation of Finnish airspace which took place last week. The NATO member said on Friday that it believed two Russian military aircraft entered its airspace off the coast of Porvoo in the southern part of the country.

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Ukraine accuses China of supplying Russian arms industry | Russia-Ukraine war News

Kyiv’s intelligence chief ‘confirms’ that China is directly aiding Russia’s arms industry.

Ukraine has data that confirms China is supplying Russia’s arms industry, according to the head of Kyiv’s foreign intelligence service.

Oleh Ivashchenko said in an interview published by the Ukrinform news agency on Monday that Ukraine can “confirm” that China is providing important materials and equipment to 20 Russian military factories.

Beijing has regularly denied accusations from Kyiv that it is aiding Moscow’s war against its neighbour.

Last month, Ukraine accused China of direct military assistance to Russia’s arms industry. Ivashchenko said that the country’s intelligence agency can now confirm those reports.

“There is information that China supplies tooling machines, special chemical products, gunpowder, and components specifically to defence manufacturing industries,” he said. “We have confirmed data on 20 Russian factories.”

‘Groundless’

Although China has sought to project an image of neutrality and denies any involvement in the war, it has increased trade and economic cooperation with Russia since its invasion of Ukraine in February 2022. Meanwhile, Western countries have imposed sweeping sanctions on Moscow.

Ukraine has regularly suggested China is supporting the war, and has said that Beijing has sent soldiers to fight alongside Russian forces.

Last month, Ukrainian President Volodymyr Zelensky made his first public accusation that China is supplying gunpowder and materials to Russia’s arms manufacturers, while also accusing Chinese citizens of helping in the production of drones.

China rejected the claim as “groundless,” but Kyiv has since imposed sanctions on three Chinese entities.

zelenskyy
Ukraine’s President Volodymyr Zelenskyy has accused China of supporting Russia’s war [File: AP]

Ivashchenko said that Ukrainian intelligence had information on at least five cases of Russian-Chinese cooperation in the aviation sector between 2024 and 2025, including the transfer of equipment, spare parts and technical documentation.

He added that there were six cases involving “large shipments” of specialty chemicals, but did not provide further details.

“As of early 2025, 80 percent of critical electronic components found in Russian drones originated in China,” Ivashchenko added.

“At the same time, there are facts of product substitutions, deceptive product names; there are shell companies through which everything necessary for the production of microelectronics is supplied.”

The comments came as Ukraine’s Air Force said Russia had launched a record number of drones against Ukraine overnight on Sunday.

Russian forces deployed 298 drones and 69 missiles, according to the report, but the Air Force said it was able to down 266 drones and 45 missiles.

Al Jazeera was not able to independently verify the figures. Ukraine said that the attack was the largest of the war in terms of weapons fired.

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Volvo to cut 3,000 jobs amid trade uncertainty | Business and Economy

The layoffs come days after US President Donald Trump threatened 50 percent tariffs on EU goods.

Swedish automaker Volvo is set to cut 3,000 white-collar jobs amid restructuring efforts as prices begin to rise due to tariff-driven uncertainty.

The company announced the news on Monday. The layoffs come as the Swedish automaker tries to resurrect its rock-bottom share price and drum up better demand for its cars by restructuring part of its business and cutting costs.

CEO Hakan Samuelsson, who was recently brought back to the role after heading the company for a decade until 2022, unveiled a programme in April to slash costs by $1.9bn (18 billion Swedish crowns), including a substantial cut to Volvo’s white-collar staff, who make up 40 percent of its workforce.

“It’s white collar in almost all areas, including R&D  [research and development], communication, human resources,” Samuelsson told the Reuters news agency.

The layoffs represent around 15 percent of the company’s office staff, Volvo Cars said in a statement, and would incur a one-time restructuring cost of $160m (1.5 billion crowns).

Volvo Cars’ new CFO Fredrik Hansson told Reuters that while all of its departments and locations would be impacted, most of the redundancies will happen in Gothenburg.

“It’s tailored to make us structurally more efficient, and then how that plays out might vary a bit depending on the area. But no stone is left unturned,” Hansson said.

With most of its production based in Europe and China, Volvo Cars is more exposed to new United States tariffs than many of its European rivals, and has said it could become impossible to export its most affordable cars to the US.

The company said in a press release that it would finalise a new structural setup by the third quarter of this year.

Volvo withdrew its financial guidance as it announced its cost cuts last month, pointing to unpredictable markets amid weaker consumer confidence and trade tariffs causing turmoil in the global auto industry.

The layoff announcement comes only days after US President Donald Trump threatened to impose a 50 percent tariff on imports from the European Union from June 1. On Monday, however, he backed away from that date, restoring a July 9 deadline to allow for talks between Washington and Brussels.

As a result, Volvo’s CEO said the move would make it harder for it to sell one of its electric vehicles (EVs) — the EX30 EV that is made in Belgium — in the US market.

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Little-known car brand to release ‘AI-powered’ super-saloon including smart cockpit’ with conversational voice assistant

A LITTLE-known car brand is preparing to launch an AI-powered luxury saloon to rival the mighty Porsche Taycan.

Chinese EV manufacturer Xpeng has unveiled the latest iteration of its P7 sports saloon that they’ve branded “more than a car”.

Illustration of the next generation XPENG P7 sports sedan.

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Xpeng unveils its next-gen P7 sports saloon, showcasing cutting-edge AI tech to rival the Porsche TaycanCredit: XPENG
Illustration of the next generation XPENG P7 sports sedan parked in front of ancient ruins.

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The Chinese EV brand reveals a sleek, AI-driven electric saloonCredit: XPENG
Illustration of a silver Xpeng P7 sports sedan in a desert landscape with futuristic pyramids.

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They say their flagship P7 aims to stand out in the crowded EV marketCredit: XPENG
Side profile of the next-generation XPENG P7 sports sedan.

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It combines style, performance, and AI-driven mobility to promise a new era of electric luxuryCredit: XPENG

Said to be Xpeng’s answer to “the AI [artificial intelligence] era in form and function”, the company has identified itself as an “AI-driven mobility company”.

Indeed, they’re positioning the new flagship P7 as a showcase for how AI can redefine the luxury car experience.

Details at this stage are scarce, but the previous P7 was described as “the world’s first AI-defined vehicle” and included highly advanced autonomous driving functions, as well as a ‘smart cockpit’ that included a Knight Rider-style voice assistant.

The next-gen model is expected to build on this, as well as introduce even more advanced capabilities.

Their ultimate aim is to stand out in China‘s increasingly crowded luxury saloon market – with the likes of the Avatr 12, Nio ET9 and Luxeed S7 all hoping to be big sellers.

Regarding the upcoming P7’s new styling, Xpeng’s Exterior Design Director Rafik Ferrag told Autocar: “With this new generation, we set out to design a pure-electric sports sedan that could amaze at every angle.

“This car is our dream – refined through countless iterations.

“In my eyes, the all-new Xpeng P7 is a work of art, shaped with emotion and purpose.”

It’s currently unknown if the P7 will be sold outside of China – with more details to follow.

For now, the Porsche Taycan remains the industry leader when it comes to luxury, performance all-electric saloons.

Inside Taycan Turbo GT Porsche that can hit 200mph as SunSport’s Isabelle Barker is taken for a spin by Formula E safety car driver

While sales have dipped in recent times, the Taycan remains a highly sought-after electric sports car ahead of the likes of the Lucid Air, Tesla Model S, BMW i4, and Audi e-tron GT.

One other Chinese brand that’s got Porsche in its sights is Denza – headed by motoring giant BYD.

The ever-expanding car brand is one of the largest private companies in China and has already started to make waves globally – including in the UK.

But for those seeking something with more speed and luxury, their sister brand Denza and their first car in its line-up – the stunning Z9 GT – might appeal.

Clearly borrowing design cues from the Taycan and Panamera, the grand tourer – with its shooting brake estate styling – was unveiled at the recent Milan Design Week ahead of its European market release later this year.

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Pope Leo prays for China’s Catholics, a thorny issue in his papacy | Religion News

Ties with China remain sensitive within the Catholic Church over a 2018 deal between the Holy See and Beijing.

Newly elected Pope Leo XIV has asked for prayers for China’s Catholics in his first reference to one of the most contentious issues that the Catholic Church and his papacy face in the arena of geopolitics.

Speaking on Sunday from the window of the Vatican’s Apostolic Palace, the pontiff recalled the World Day of Prayer for the Church in China, which falls each May 24 – a feast initiated by Pope Benedict XVI.

“In the churches and shrines of China and throughout the world, prayers were raised to God as a sign of concern and affection for Chinese Catholics and their communion with the universal church,” Leo said to about 35,000 faithful.

The pope hoped the prayers “obtain for them and for us the grace to be strong and joyful witnesses of the Gospel, even in the midst of trials, to always promote peace and harmony”, he said.

Pope Benedict XVI, who headed the church from 2005 until 2013, established the feast as part of his efforts to unify China’s estimated 12 million Catholics, who were divided between an official, state-controlled church that didn’t recognise papal authority, and an underground church that remained loyal to Rome through decades of persecution.

 

Ties with China remain a deeply sensitive issue within the church as some clergymen reject a 2018 deal between the Holy See and China that gave Beijing a say in the appointment of Catholic bishops there, since Catholics were repressed by the Communist Party. 

The agreement was aimed at uniting the flock, regularising the status of seven bishops who weren’t recognised by Rome, and thawing decades of estrangement between China and the Vatican.

While details of the agreement were never released, Pope Francis insisted he retained veto power over the ultimate choice.

Critics, particularly on the Catholic right wing, believed Francis had caved to Beijing’s demands and sold out the underground faithful in China. The Vatican has said it was the best deal it could get, and it has been renewed periodically since then.

Pope Leo will have to decide whether to continue renewing the accord. There have been some apparent violations on the Beijing side, with some unilateral appointments that occurred without papal consent.

The issue came to a head just before the conclave that elected Leo, when the Chinese church proceeded with the preliminary election of two bishops, a step that comes before official consecration.

The Vatican has been working for years to try to improve relations with China that were officially severed over seven decades ago when the Communists came to power.

Relations had long been fraught over China’s insistence on its exclusive right to name bishops as a matter of national sovereignty, while the Vatican insisted on the pope’s exclusive right to name the successors of the original Apostles.

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EU vows to defend interests after Trump threatens 50 percent tariffs | Trade War News

EU official says a trade deal ‘must be guided by mutual respect, not threats’ after the US president says talks with the bloc are ‘going nowhere’.

The European Union has said it will defend its interests after United States President Donald Trump threatened to impose a 50-percent tariff on all goods from the 27-member bloc.

The EU’s top trade official, Maros Sefcovic, said in a post on X that he spoke on Friday with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick on the issue.

“The EU is fully engaged, committed to securing a deal that works for both,” he said, adding that the EU Commission remains ready to work in good faith towards an agreement.

“EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests.”

Trump posted on his Truth Social platform that he is “recommending” a huge 50 percent duty on the EU starting on June 1 since talks with them “are going nowhere”.

Trump
Trump disembarks Air Force One as he arrives in New Jersey, the United States, on May 23, 2025 [Nathan Howard/Reuters]

Speaking later in the Oval Office, the Republican president emphasised that he was not seeking a deal with the EU but might delay the tariffs if more European companies made major investments in the US.

“I’m not looking for a deal,” Trump told the reporters. “We’ve set the deal. It’s at 50 percent.”

European leaders warned the tariffs will hurt both sides.

German economy minister Katherina Reiche said everything must be done “to ensure that the European Commission reaches a negotiated solution with the United States” while French foreign minister Laurent Saint-Martin said the bloc prefers de-escalation but is “ready to respond”.

If implemented, the tariffs would mean that the EU will have higher import taxes on its hundreds of billions worth of exported goods compared with China, which had its tariffs cut earlier this month to allow more negotiations between Washington, DC, and Beijing.

In early April, Trump announced a 20 percent tariff on most EU goods but brought it down to 10 percent until July 8 to allow time for more negotiations.

Trump has complained that existing frameworks are “unfair” to US companies as the European bloc sells more goods to its ally than it buys from it.

Trump on Friday also warned that the US tech giant Apple could also be hit with a 25 percent import tax on all iPhones not manufactured but sold in the US.

His announcements online dealt another blow to stock markets both in the US and in the EU, with the S&P 500 down about 0.8 percent and the pan-European STOXX 600 index falling about 1.2 percent.

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Pakistan, Afghanistan move towards ‘restoring ties’ in talks with China | Taliban News

Islamabad, Pakistan – As Pakistan remained embroiled in a war of words with its archrival India – following a dramatic exchange of missiles and drones nearly two weeks ago – it this week advanced diplomatic efforts with two other neighbors: China and Afghanistan, which could lead to the formal resumption of diplomatic ties between Islamabad and Kabul after nearly four years.

In an “informal” trilateral meeting held in Beijing on May 21, the foreign ministers of China, Pakistan and Afghanistan convened under a forum first launched in 2017, and which last met in May 2023.

This time, a key outcome from the meeting, according to Chinese Foreign Minister Wang Yi, was a renewed willingness by both Pakistan and Afghanistan to restore diplomatic relations after heightened tensions in recent years.

“Afghanistan and Pakistan expressed clear willingness to elevate diplomatic relations and agreed in principle to exchange ambassadors as soon as possible. China welcomed this and will continue to provideassistance for the improvement of Afghanistan-Pakistan relations,” Wang said.

He added that the China-Pakistan Economic Corridor (CPEC) – a $62bn mega project under China’s Belt and Road Initiative (BRI) – will now be extended into Afghanistan.

A Pakistani diplomat with direct knowledge of the talks told Al Jazeera that the next round of the trilateral meetings will be held “very soon”, within a few weeks, to build on the momentum from the Beijing conclave.

“I am reasonably optimistic about the outcomes. It was a great confidence- and trust-building exercise between the three countries,” said the official, speaking on condition of anonymity about the Beijing meeting.

Trilateral diplomacy amid Indo-Pakistan tensions

The meeting came after a four-day standoff between Pakistan and India, with both countries claiming “victory” and launching diplomatic offensives to assert dominance.

The conflict, from May 7 to May 10, followed Indian strikes on what it called “terrorist infrastructure” in Pakistan, in retaliation for the Pahalgam attack in Indian-administered Kashmir last month that left 26 civilians dead. India blamed the attack on Pakistan-based armed groups, an allegation Islamabad denies.

While China urged restraint on both sides, its support for Pakistan was evident on the front lines of the conflict, with the Pakistani military using Chinese fighter jets, missiles, and air defence systems.

On the other hand, Indian Foreign Minister S Jaishankar said on May 15 that he appreciated Afghan acting Foreign Minister Amir Khan Muttaqi’s “condemnation” of the Pahalgam attack, in a conversation between the two. Indian media also reported a visit to New Delhi by senior Taliban figure and deputy interior minister, Ibrahim Sadr, in early May.

Mustafa Hyder Sayed, executive director of the Islamabad-based Pakistan-China Institute, called the Beijing meeting “very significant”, given Afghanistan’s geopolitical sensitivity.

For Pakistan and China, the “conflict with India has reinforced strategic clarity” on the need to work closely with Afghanistan,  Sayed said.

Kabul-based political analyst Tameem Bahiss agreed.

“This [the call between Muttaqi and Jaishankar] signals a major shift in India-Afghanistan relations, one that could raise concerns in Islamabad amid an already volatile regional climate,” he said. “The timing of this trilateral meeting, not just its content, reflects an urgent need for coordination among these three countries as new geopolitical dynamics take shape in South and Central Asia.”

A rocky relationship

When the Afghan Taliban returned to power in August 2021, many saw it as a win for Pakistan, given its historical ties to the group. From 1996 through 2021, Pakistan was one of the Taliban’s key allies. India, meanwhile, viewed the Taliban as a proxy of Pakistan’s intelligence agencies and refused to engage with it.

However, relations between Pakistan and the Taliban have deteriorated.

Pakistan has accused the Afghan Taliban of allowing groups like Tehreek-e-Taliban Pakistan (TTP) to launch attacks across the border, an allegation the Taliban vehemently deny. The TTP, formed in 2007, shares ideological roots with the Afghan Taliban but operates independently.

According to the Pak Institute for Peace Studies, Pakistan suffered 521 attacks in 2024 – a 70 percent increase from the previous year – resulting in nearly 1,000 civilian and security personnel deaths.

But in a trip that was seen as a potential breakthrough in strained ties, Pakistan’s Foreign Minister Ishaq Dar visited Kabul on April 19, just days before the Pahalgam attack.

Ihsanullah Tipu, an Islamabad-based security analyst, says Pakistan’s renewed diplomatic outreach to Afghanistan prioritises key concerns, with security taking precedence over trade, border disputes, and border closures, a sentiment he said China also shares.

“To foster meaningful trade ties, Pakistan’s security concerns must be addressed first,” Tipu told Al Jazeera, warning that failure to do so could escalate tensions to armed conflict.

“But given China’s global influence and close ties with both Pakistan and Afghanistan, Beijing can play a pivotal role as a guarantor of any commitments made,” added Tipu, who co-founded the security research portal The Khorasan Diary.

Common security threats

While Pakistan continues to accuse the Afghan Taliban of harbouring fighters who attack targets in Pakistan, many of these assaults have been directed at Chinese nationals working on CPEC projects.

Pakistani government figures estimate that about 20,000 Chinese nationals live in the country. At least 20 have been killed in attacks since 2021 in provinces like Khyber Pakhtunkhwa and Balochistan. Groups including the TTP have claimed responsibility.

China has also expressed concern over the East Turkestan Islamic Movement (ETIM), alleging that its fighters use Afghan territory to stage attacks against China.

Sayed of PCI stressed that both Pakistan and China see security as their “core interest” in Afghanistan.

“This is a shared threat, and in the past the ETIM has also had a significance presence in Afghanistan. And these militant networks are connected with each other as well. So that is a pre-requisite for any cooperation to move forward, to first neutralise these terrorist outfits, which seem to be operating freely and comfortably in Afghanistan,” he said.

However, Bahiss noted that since the Taliban’s return to power, most regional countries, including China, have found the security situation inside Afghanistan acceptable, enabling ongoing economic engagement.

“The key exception is Pakistan, which continues to face serious threats from Afghan soil. While Pakistan prioritises eliminating or containing the TTP, Kabul is focused on trade, transit, and regional integration,” he said.

This is where China’s pivotal role could come into the picture, the Kabul-based analyst said, adding that the country is uniquely positioned to mediate by encouraging security cooperation while also advancing trade and transit initiatives that benefit all three countries.

India-Afghanistan ties and Pakistan’s concerns

During the civilian governments in Afghanistan from 2001 to 2021, India and Afghanistan developed close ties, despite several attacks on Indian diplomatic missions by the Taliban and its allies.

In recent months, there has been increased interaction between officials from New Delhi and Kabul, including the recent Jaishankar-Muttaqi conversation.

Does this warming of ties raise alarm in Islamabad? Sayed doesn’t think so.

“Pakistan doesn’t mistrust Kabul. But Pakistan has asked for action. The rulers there need to walk the talk regarding TTP and other terrorist outfits. I don’t think either Beijing or Islamabad opposes Kabul having positive relations with India, as long as it doesn’t compromise the interests of Pakistan and China,” he said.

However, Bahis said New Delhi’s rapprochement with the Taliban could lead to worries in Pakistan and China, both of which have historically had tense ties with India.

“While recent India-Afghanistan contacts are still in early stages, their timing may raise concerns in Islamabad,” he said.

“Afghanistan has the sovereign right to engage with any country, including India. But it must tread carefully. Clear messaging is essential to ensure that its growing ties with New Delhi aren’t misinterpreted as threats by other regional players,” Bahiss said. “Balancing these complex relationships will require diplomacy, transparency, and mutual respect.”



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