China

CHICAGO — Growing up in the Soviet Union, Pedro Spivakovsky-Gonzalez’s father and grandparents would listen to Voice of America with their ears pressed to the radio, trying to catch words through the government’s radio jamming.

The U.S.-funded news service was instrumental in helping them understand what was happening on the other side of the Iron Curtain, before they moved to the United States in the 1970s.

“It was a window into another world,” Spivakovsky-Gonzalez said. “They looked to it as a sort of a beacon of freedom. They were able to imagine a different world from the one they were living in.”

When Spivakovsky-Gonzalez and his family heard of President Trump’s attempts to dismantle the U.S. Agency for Global Media — which oversees VOA, Radio Free Europe and Radio Free Asia — he said it was a “gut punch.”

The first months of the second Trump administration have delivered blow after blow to American efforts to promote democracy abroad and pierce the information wall of authoritarian governments through programs that had been sustained over decades by presidents of both political parties.

The new administration has decimated the Agency for Global Media, restructured the State Department to eliminate a global democracy office and gutted the U.S. Agency for International Development, which just last year launched an initiative to try to halt the backsliding of democracy across the globe. In all, the moves represent a retrenchment from the U.S. role in spreading democracy beyond its borders.

Experts say the moves will create a vacuum for promoting freedom and representative government, and could accelerate what many see as antidemocratic trends around the world.

“The United States has historically been the leading power in spreading democracy globally. Despite different administrations, that has remained the case — until now,” said Staffan Lindberg, a political science professor at the University of Gothenburg in Sweden.

‘Pillar of American foreign policy’

David Salvo, managing director for the Alliance for Securing Democracy at the German Marshall Fund, said promoting democracy abroad has been “a pillar of American foreign policy in the last 50 years” as a means of ensuring more stable, peaceful relationships with other countries, reducing the threat of conflict and war, and fostering economic cooperation.

Yet among President Trump’s early actions was targeting democracy programs through the State Department and USAID, which had launched a new global democracy initiative at the end of the Biden administration. The Treasury Department halted funding to the National Endowment for Democracy, and Secretary of State Marco Rubio said in April he would shut a State Department office that had a mission to build “more democratic, secure, stable, and just societies.”

Funding cuts have hit the National Democratic Institute, the International Foundation for Electoral Systems and U.S. nonprofits that have worked for decades “to inject resources into environments so that civil society and democratic actors can try to effect change for the better,” including through bolstering unstable democracies against autocrats, Salvo said.

Whether global democracy programs are worth funding was central to a hearing Thursday by a U.S. House Foreign Affairs subcommittee, as Rep. Maria Elvira Salazar (R-Fla.) repeatedly asked how to “ensure our return on investment is really high.”

About 1.2% of the federal budget went to foreign aid in the 2023 fiscal year, according to the Pew Research Center.

“I understand the committee is interested in how we can improve … and get back to basics,” Tom Malinowski, a former Democratic congressman from New Jersey and assistant secretary of State for democracy, human rights and labor under President Obama, told lawmakers. “The problem is the administration is eliminating the basics right now.”

Uzra Zeya, who leads the international nonprofit Human Rights First after serving in the Biden State Department, said it was “heartbreaking and alarming” to watch the U.S. essentially dismantle its democracy and human rights programs.

“The potential long-term impacts are devastating for U.S. national security and prosperity,” she said.

Diminishing the messaging pipelines

For more than 80 years, VOA and its related outlets have delivered news across the world, including to more than 427 million people every week in 49 languages, according to a 2024 internal report. The broadcaster began during World War II to provide Germans with news, even as Nazi officials attempted to jam its signals. The Soviet Union and China attempted to silence its broadcasts during the Cold War. Iranian and North Korean governments have also tried to block access to VOA for decades.

But the most successful attempt to silence VOA has been through its own government. It was in effect shut down in March through a Trump executive order.

Lisa Brakel, a 66-year-old retired librarian in Temperance, Mich., said VOA was a “mainstay” when she was a music teacher in Kuwait in the 1980s. She and her colleagues would listen together in the apartment complex where the American teachers were housed, to stay up to date with news from home.

When she learned the news about the VOA funding cuts, “I thought, ‘No, they can’t shut this down. Too many people depend on that,’” Brakel said. “As a librarian, any cuts to free access to information deeply concern me.”

Emboldening U.S. rivals

The broadcaster’s future remains in flux after a federal appellate court paused a ruling that would have reversed its dismantling. This was just a day after journalists were told they would soon return to work after being off the air for almost two months. Even if they are allowed back, it’s unclear that the mission would be the same.

Last week, the Trump administration agreed to use the feed of One American News, or OAN — a far-right, ardently pro-Trump media network known for propagating conspiracy theories — on VOA and other services.

In Asia, dismantling Radio Free Asia would mean losing the world’s only independent Uyghur language news service, closing the Asia Fact Check Lab as it reports on misinformation from the Chinese Community Party, and curbing access to information in countries such as China, North Korea and Myanmar that lack free and independent media, the broadcaster’s president, Bay Fang, said in a statement.

“Their invaluable work is part of RFA’s responsibility to uphold the truth so that dictators and despots don’t have the last word,” Fang wrote in May in the New York Times.

Experts who monitor global democracy said the information gap created by the administration will embolden U.S. competitors such as Russia and China, which already are ramping up their efforts to shape public opinion.

Barbara Wejnert, a political sociologist at the University at Buffalo who studies global democracies, said diplomatic efforts through U.S. broadcasters and democracy nonprofits helped precipitate a “rapid increase in democratizing countries” in the late 20th century.

“Especially today when the truth is distorted and people don’t trust governments, spreading the notion of freedom and democracy through media is even more vital,” she said.

Fernando writes for the Associated Press.

The US and China have agreed to a 90-day pause on punitive trade tariffs, with both sides also set to reduce proposed levies by 115 percentage points, following trade talks in Geneva over the weekend. Chinese Vice Premier He Lifeng stressed the importance of resolving issues through equal and respectful dialogue.

Some ‘reciprocal’ tariffs and duties are being rolled back in favour of ‘mutually beneficial’ talks.

China and the United States have agreed to suspend some of the heavy trade tariffs imposed against one another as they prepare to extend negotiations aimed at lowering trade war tensions.

The two countries issued a joint statement on Monday, following two days of trade talks in Geneva, Switzerland. They described the negotiations, which came after US President Donald Trump’s nationalist agenda prompted a spiral of increasingly heavy duties, as positive.

Global markets reacted positively to the news, with stock markets in Hong Kong, the US and Europe rising.

In the statement, Beijing and Washington said they recognise the importance of their bilateral economic and trade relationship to both countries and the global economy.

They said they would move forward “in the spirit of mutual opening, continued communication, cooperation, and mutual respect”.

As part of the agreement, the US will suspend its additional ad valorem rate of duties – tax based on the value of goods – by 24 percent for an “initial” period of 90 days. This will leave a 10 percent tariff rate in place.

China will reduce its duties on US imports by a similar amount, also retaining a tariff of 10 percent.

Washington will also roll back tariffs imposed by two executive orders signed by Trump in early April, affecting a wide range of US imports of goods from China, including Hong Kong and Macau.

Beijing will suspend tariffs imposed in response and “suspend or remove the non-tariff countermeasures” taken against the US.

‘Neither side wants to be decoupled’

The world’s two largest economies also agreed to establish a mechanism to continue discussions on economic and trade relations, and named officials to lead the talks.

Vice Premier of the State Council He Lifeng will be China’s top negotiator. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will lead the talks for the White House.

“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues,” the joint statement reads.

Bessent told reporters in Geneva that “both sides will move down reciprocal tariffs” by up to 115 percent on some goods after successful meetings during which the two delegations exhibited “great respect” for each other.

“The consensus from both delegations is neither side wants to be decoupled,” Bessent said, adding that the tariffs were the equivalent of an embargo, something neither side favoured.

Global markets had fallen considerably amid the trade wars launched by the Trump administration as uncertainty grew over the potential impact of the tariffs.

However, signs of a pullback have been seen in recent weeks.

The agreement with China comes days after the US reached a framework for a trade agreement that would reset most of Washington’s tariffs on imports from the United Kingdom.

May 12 (UPI) — The United States and China said Monday that they have reached an agreement to cut most of their tariffs for 90 days to allow more time for continued economic and trade discussions.

The countries announced the 90-day pause on the majority of their tariffs in a statement. Under the agreement, the United States will reduce its tariffs on Chinese goods from the current 145% to 30%, and China will reduce its tariffs on U.S. goods from 125% to 10%.

The agreement was reached during trade negotiations in Geneva, Switzerland, where U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with their Chinese counterparts, including Vice Premier He Lifeng, over the weekend.

“We had very robust discussions. Both sides showed great respect,” Bessent told reporters in a press conference.

“Both countries represented their national interests very well. We concluded that we have shared interests and we both have an interest in balanced trade. The U.S. will continue moving towards that.”

According to the joint statement, Washington and Beijing agreed to “establish a mechanism to continue discussions about economic and trade relations.”

It stipulates that He will represent China in the discussions, and Bessent and Greer will represent the United States.

“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties,” it said.

The breakthrough in the trade war was immediately felt by the markets, with the Nasdaq futures seeing a 3.37% gain, the S&P 500 futures climbing by 2.49% and the Dow going up 1.95% or 808 points.

President Donald Trump has long turned to tariffs as a tool to even out trade deficits, as a negotiation tactic and as an attempt to spur domestic manufacturing.

He initially announced a 10% tariff on Chinese goods that he then doubled on accusations that Beijing wasn’t doing enough to curb the flow of drugs — specifically fentanyl — into the United States. Further tariffs were then piled on China. In response, Beijing announced retaliatory tariffs of its own, sparking the trade war and sending concerns through global markets.

This is a developing story.

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Risk-on sentiment continued to dominate global market trends during Monday’s Asian session after officials from the US and China signalled “substantial progress” following two days of trade negotiations in Switzerland over the weekend.

China’s Vice Premier, He Lifeng, described the meeting as “an important first step” towards resolving differences, with both sides agreeing to establish a mechanism for further discussions. However, no specific details were provided regarding the points of agreement or the timeline for subsequent meetings. US Treasury Secretary Scott Bessent stated that more information would be shared on Monday, while he noted that a joint statement would be released.

Risk-on prevails

Optimism toward a potential de-escalation in trade tensions between the US and China fuelled risk-on sentiment, with stock markets rallying and safe-haven assets declining.

As of 5:30 am CEST, US stock futures had surged, with the Dow up 1.12%, the S&P 500 rising 1.46%, and the Nasdaq Composite gaining 1.93%. European equities were also poised for a higher open. Among major stock futures, Germany’s DAX advanced 0.85%, reaching a fresh high; the Euro Stoxx 600 rose 0.8%; and the UK’s FTSE 100 climbed 0.36%.

Asian equity markets also posted gains. Hong Kong’s Hang Seng Index rose 0.9%, Japan’s Nikkei 225 added 0.1%, the ASX 200 gained 0.28%, and South Korea’s Kospi advanced 0.7%.

Conversely, gold prices declined sharply as demand for safe-haven assets eased. Spot gold fell 1.4% to $3,279 per ounce, marking its lowest level since 5 May.

Meanwhile, haven currencies, including the euro, the Japanese yen, and the Swiss franc, weakened further against the US dollar, falling to their lowest levels since 10 April.

Markets await details of trade talks

Uncertainty remains as investors await further information regarding the trade discussions between the world’s two largest economies.

“Greater clarity on these matters, to provide firm backing to the apparent more conciliatory tone of rhetoric seen from both sides, will be needed to give markets additional confidence that the peak of trade uncertainty and tit-for-tat tariffs is indeed in the rear-view mirror, and to unlock the door to a more durable and sustainable firming in risk appetite,” wrote Michael Brown, a senior research strategist at Pepperstone Group in London.

“For the time being, however, given the prevailing uncertainty, I’m inclined to fade this strength in the dollar and equities — at least in the short term,” he added.

The S&P 500 has rebounded nearly 10% since US President Donald Trump indicated a substantial cut to tariffs on China in late April. Nonetheless, the benchmark index remains negative year-to-date, down 3.8%. Meanwhile, the US dollar index (DXY) has dropped more than 7% this year, despite the recent rebound.

According to Bloomberg, the US is considering reducing tariffs on Chinese goods to below 60% as a first step, while seeking to negotiate the removal of Chinese restrictions on rare earth exports to the US. In early April, Beijing announced export restrictions on a wide range of critical minerals — including germanium, gallium, antimony, and magnets — potentially disrupting production in American electric vehicles and other electronic devices.

Beijing and Washington have both hailed the progress made at the end of a weekend of closed-door discussions in Switzerland aimed at de-escalating trade tensions sparked by US President Donald Trump’s aggressive worldwide tariff rollout in March and China’s retaliation.

Following the talks on Sunday at the Geneva villa of the Swiss ambassador to the United Nations, US Treasury Secretary Scott Bessent told reporters: “I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks.”

“The talks were productive,” he added.

Trade Representative Jamieson Greer, who also took part in the two days of closed-door talks with Chinese Vice Premier He Lifeng, said that the differences between the sides were “not so large as maybe thought”.

He also lauded what he called “important progress” in the trade talks with the US.

Speaking to reporters in Geneva, he said the atmosphere of the talks with Bessent and Greer had been candid, in-depth, and substantive, echoing similar language from the US delegation.

Both countries said they would put out a joint statement on the talks on Monday.

After the first day of negotiations, Trump had posted on his social network Truth Social that the discussions had been “very good”, describing them as “a total reset negotiated in a friendly, but constructive, manner”.

Beijing had yet to comment Sunday, but on Saturday, Chinese state news agency Xinhua described the talks as “an important step in promoting the resolution of the issue”.

The Chinese delegation was expected to speak to the media on Sunday evening.

The meetings marked the first time that senior officials from the world’s two largest economies have met face-to-face to tackle the topic of trade since Trump slapped steep new levies on China last month, sparking a robust retaliation from Beijing.

“The talks reflect that the current state of the trade relations with these extremely high tariffs is ultimately in the interests of neither the United States nor China,” Citigroup global chief economist Nathan Sheets told news agency AFP. He called the tariffs a “lose-lose proposition”.

The tariffs imposed by Trump on the Asian manufacturing giant since the start of the year currently total 145 percent, with cumulative US duties on some Chinese goods reaching a staggering 245 percent.

Keeping expectations low

In retaliation, China put 125-percent tariffs on US goods.

Ahead of the meeting, Trump signalled he might lower the tariffs, suggesting on social media that an “80% Tariff on China seems right!”

However, his press secretary Karoline Leavitt later clarified that the US would not lower tariffs unilaterally, as China would also need to make concessions.

Going into the meeting, both sides played down expectations of a major change in trade relations.

Bessent underlined a focus on “de-escalation” and not a “big trade deal”, while Beijing insisted that the US had to ease tariffs first.

The fact that the talks are even happening “is good news for business, and for the financial markets”, said Gary Hufbauer, a senior non-resident fellow at the Peterson Institute for International Economics.

But Hufbauer cautioned that he was “very sceptical that there will be any return to something like normal US-China trade relations”. Even a tariff rate of 70 to 80 percent would still potentially halve bilateral trade, he said.

Among some of the more moderate Trump officials, such as Bessent and US Commerce Secretary Howard Lutnick, “there’s a realisation that China is better equipped to deal with this trade war than the US”, said Hufbauer.

The Geneva meeting comes after Trump unveiled a trade agreement with the United Kingdom on Thursday, the first deal with any country since he unleashed his blitz of global tariffs, but which maintains a 10-percent baseline levy on most British goods.

Following the US-UK trade announcement, analysts have voiced pessimism about the likelihood that negotiations will lead to any significant changes in the US-China trade relationship.

In his Truth Social post, Trump claimed the talks had made “GREAT PROGRESS!!”

“We want to see, for the good of both China and the U.S., an opening up of China to American business,” he said.

GENEVA — U.S. negotiators said Sunday that “substantial progress” was made and “perhaps the differences weren’t so large” after two days of negotiations with a high-ranking Chinese delegation on ways to ease a trade war sparked by President Trump’s steep tariffs. But China was more muted in its assessment.

U.S. Treasury Secretary Scott Bessent, who led the U.S. delegation during talks in Geneva, said there was “a great deal of productivity.”

“I’m happy to report that we’ve made substantial progress between the United States and China in the very important trade talks,” Bessent said.

He echoed the positive sentiment of Trump, who suggested Saturday night on social media that “GREAT PROGRESS” was being made toward what he suggested could be a “total reset” on tariffs that have put the global economy on edge.

The Chinese delegation did not offer an immediate assessment of what occurred, but Beijing struck a more measured tone about the negotiations’ overall direction. China, in an editorial in its state-run news agency, said it would “firmly reject any proposal that compromises core principles or undermines the broader cause of global equity.”

The discussions were held at a stately villa that serves as the residence of the Swiss ambassador to the United Nations, and little information was available on-site or back in Washington as they unfolded. Bessent offered few details on exactly what was discussed, but said he and U.S. Trade Representative Jamieson Greer spoke to Trump on Saturday night.

U.S. officials planned a briefing with more details on Monday morning.

“It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as far as maybe thought,” said Greer, who did not say what agreement he was referring to. Speaking to reporters near the villa, Greer and Bessent gave statements but did not take questions.

Greer also stressed that a top Trump priority is closing the U.S. trade deficit with China, which came to a record $263 billion last year.

“We’re confident that the deal we struck with our Chinese partners will help us to resolve, work towards resolving that national emergency,” Greer said.

The discussions could help stabilize world markets roiled by the U.S.-China standoff that has ships in port with goods from China unwilling to unload until they get final word on tariffs.

Trump last month raised U.S. tariffs on China to a combined 145%, and China retaliated by hitting American imports with a 125% levy. Tariffs — import taxes — that high essentially amount to the countries’ boycotting each other’s products, disrupting trade that last year topped $660 billion.

The editorial on the Chinese news agency Xinhua said, “Talks should never be a pretext for continued coercion or extortion, and China will firmly reject any proposal that compromises core principles or undermines the broader cause of global equity.”

Still, top members of the Trump administration were following the president’s lead in insisting that a reset of U.S.-China trade relations could be in the offing.

“Secretary Bessent has made clear that one of his objectives is to de-escalate,” U.S. Commerce Secretary Howard Lutnick, who wasn’t in Geneva, said on “Fox News Sunday.” He added that the U.S. and China have both imposed tariffs that are “too high to do business, but that’s why they are talking right now.”

“We are the consumer of the world. Everybody wants to sell their goods here,” Lutnick said. “So they need to do business with [the U.S.], and we’re using the power of our economy to open their economy to our exporters.”

Kevin Hassett, director of the White House National Economic Council, told Fox News Channel’s “Sunday Morning Futures” that “what’s going to happen in all likelihood is that relationships are going to be rebooted. It looks like the Chinese are very, very eager to play ball and to renormalize things.

“We’re essentially starting over, starting from scratch with the Chinese,” Hassett said, adding, “And they seem to think that they really want to rebuild a relationship that’s great for both of us.”

The talks mark the first time the sides have met face-to-face to discuss the issues. And though prospects for a breakthrough are slight, even a small drop in tariffs, particularly if taken simultaneously, would help restore some confidence.

“Negotiations to begin de-escalating the growing US–China trade war are badly needed and it’s a positive sign that both sides were able to gracefully move beyond their bickering over who had to call first,” Jake Werner, director of the East Asia Program at the Quincy Institute for Responsible Statecraft, said in an email.

The Trump administration has imposed tariffs on countries worldwide, but its fight with China has been the most intense. Trump’s import taxes on goods from China include a 20% charge that he says is meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States.

The remaining 125% involve a dispute that dates back to Trump’s first term and comes atop tariffs he levied on China back then, which means the total tariffs on some Chinese goods can exceed 145%.

Keaten, Bodeen and Weissert write for the Associated Press and reported from Geneva; Taipei, Taiwan; and Washington, respectively,

Data shows that about 80 percent of all toys and 90 percent of Christmas goods sold in the US are manufactured in China.

Whether you are gift-wrapping a toy car or hanging Christmas ornaments, there is a strong chance you are handling products made in a Chinese factory.

The day after President Donald Trump spoke in an interview about his tariff policies that girls in the United States do not need to “have 30 dolls”, some political commentators discussed China’s influence over the US toy market. The US currently has a 145 percent tariff on goods from China.

“China makes 80 percent of all toys sold in this country and 90 percent of all Christmas goods sold in this country,” former New York Times columnist Charles Blow said during a May 5 appearance on CNN’s News Night with Abby Phillip. “We have a lot of leverage with China. The Christmas and the doll industry is not one of them.”

Blow told PolitiFact his source was an April 29 report in The New York Times. It said, “Factories in China produce nearly 80 percent of all toys and 90 percent of Christmas goods sold in America.”

Data shows those figures are rounded up, but not far off.

Blow’s statement is “directionally accurate but slightly overstated on toys”, said Gilberto Garcia-Vazquez, chief economist at Datawheel, which operates an online economic data platform called the Observatory of Economic Complexity.

He said out of $41bn worth of imports in toys, games and sports equipment in 2024 by the US, $30bn, or about 73 percent, was manufactured in China.

“If you include domestic production – small but non-negligible – China likely supplies closer to 72 percent of toys actually sold in the US, not 80 percent,” Garcia-Vazquez said. The Observatory of Economic Complexity uses data sources from “statistical offices, open data portals or custom union websites”.

Claire Huber, spokesperson for the US International Trade Commission (USITC), provided PolitiFact with an analysis of 2024 data that showed 78.3 percent of toy imports and 85 percent of Christmas-related imports, such as lights, trees and decorations, are manufactured in China. The toy category includes dolls, wheeled toys and scale models.

The data was compiled using the USITC’s DataWeb, which cites statistics published by the US Department of Commerce’s Census Bureau, accessed on May 9.

Garcia-Vazquez also analysed 2024 data for Christmas goods and said 90 percent of US imports in that category came from China.

He said Christmas lights are an exception because “Cambodia has recently overtaken China as the top source”.

The New York Times published an April 27 report that showed 76 percent of “toys and puzzles” and 87 percent of “Christmas decorations” come from China. Bloomberg, citing the trade organisation Toy Association, said “roughly 80 percent of toys sold in the US are made in China”.

Data shows 73 to 78 percent of toy imports and 85 to 90 percent of Christmas-related imports in 2024 came from China, supporting Blow’s point that the vast majority of these goods come from China. We rate his statement True.

On May 10, United States President Donald Trump announced a “full and immediate” ceasefire between India and Pakistan brokered by his administration. US media reported that, alarmed by intelligence signalling further escalation, Vice President JD Vance, Secretary of State Marco Rubio, and White House Chief of Staff Susie Wiles drove urgent mediation. Vance warned Indian Prime Minister Narendra Modi of catastrophic risks and encouraged direct talks between India and Pakistan.

The announcement of the ceasefire was received across the world with a sigh of relief. The spectre of a nuclear exchange, which according to one 2019 study could kill up to 125 million people in less than a week, had fuelled regional anxiety and spurred the US diplomatic frenzy.

In India, however, Trump’s announcement was seen differently in some quarters. Former Indian army chief Ved Prakash Malik posted on X: “Ceasefire 10 May 25: We have left India’s future history to ask what politico-strategic advantages, if any, were gained after its kinetic and non-kinetic actions.” MP Asaduddin Owaisi wrote on the same platform: “I wish our PM @narendramodi had announced the ceasefire rather than the President of a foreign country. We have always been opposed to third party intervention since Simla (1972). Why have we now accepted it? I hope the Kashmir issue will not be internationalised, as it is our internal matter.”

The latter comment likely refers to Trump’s statement that he is willing to work with India and Pakistan “to see if, after a ‘thousand years,’ a solution can be arrived at concerning Kashmir”.

The ceasefire announcement by the US president appears to have been perceived by some in India as a sign of the Modi government’s retreat under US pressure while his offer to mediate on Kashmir is being seen as an indication that India’s longstanding rejection of third-party intervention is being undermined.

In South Asian geopolitics, perception often outpaces reality – until reality bites. India has long projected regional dominance, bolstered by economic growth and nuclear might. Yet its actions in the aftermath of the April 22 massacre carried out by the Resistance Front (TRF) in Kashmir exposed its vulnerabilities. Intended to assert strength, India’s response faltered, boosting Pakistan’s regional standing and leaving Modi’s government diplomatically weakened.

On May 7, India launched Operation Sindoor to dismantle terrorist bases linked to groups like the TRF, which, it claims, is supported by Pakistan. Backed by French-made Rafale jets, the operation sought to project Modi’s strongman image amid domestic outrage. Yet its success was contested. Pakistan reported civilian casualties, including children, while India insisted only terrorist sites were hit.

Pakistan’s air force scrambled its own jets to deflect the attack and claimed it downed five Indian jets, including three Rafales. Two US officials confirmed to the Reuters news agency that a Chinese-made J-10 jet shot down at least two Indian planes, aided by Chinese intelligence, surveillance and reconnaissance (ISR) support. India has not acknowledged any losses.

Indian media initially claimed devastating strikes on Pakistani cities, including Karachi’s seaport, but these reports, which were clearly part of propaganda efforts, were proven false.

On May 9, India launched missile attacks on Pakistani bases, including one near Islamabad, Pakistan claimed. The Pakistani army retaliated with short-range missile and drone strikes targeting Indian airbases at Udhampur, Pathankot, Adampur and Bhuj. Indian air force officer Vyomika Singh reported Pakistani drones and munitions hit civilian and military targets.

India’s image as a regional hegemon frayed. The Indian government clearly overestimated its Rafale jets and underestimated Pakistan’s Chinese-backed ISR systems, which enhanced battlefield precision.

China’s military support for Pakistan has increased significantly in recent years. Since 2020, it has accounted for 81 percent of Islamabad’s military imports.

For years, some Indian defence analysts warned that India’s military was unprepared for a China-supported Pakistan, given its limited US or Russian backing for its high-risk Kashmir gamble. Others criticised the government’s foreign policy for encouraging China-Pakistan rapprochement. Their warnings remained unheeded in New Delhi.

The events of the past few days exposed India’s strategic limits, replacing ambiguity with global scrutiny. The kneejerk reaction in New Delhi may be to increase the defence budget and deepen even further the militarisation of Kashmir.

As the Indian government plans its next steps, it should do well to consider that the status quo of shadow war and the cycle of covert aggression fuelling unrest is untenable. Both nations’ intelligence agencies have long backed proxies, driving instability from Kashmir to Afghanistan.

The path forward rests on New Delhi and Islamabad making wise choices. Restraint, not rhetoric, should shape policies moving forward. Failure to do so risks geopolitical turmoil, economic stagnation and hardship for millions. Home to a quarter of the world’s poorest people and more than 350 million illiterate adults, India and Pakistan cannot afford prolonged strife. Continued tensions could derail India’s growth and cripple Pakistan’s fragile economy, dwarfing any tactical gains.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.

May 10 (UPI) — The United States and China are carrying out high-level diplomatic talks in Geneva, Chinese state-run media reported from the Swiss capital on Saturday.

The meeting’s agenda is focussing on “economic and trade affairs,” the Xinhua News Agency said in a brief story.

Vice Premier He Lifeng is representing China at the talks, while U.S. Treasury Secretary Scott Bessent is the top American diplomat, China’s state-run broadcaster CCTV reported.

American officials earlier this week confirmed the meeting would take place.

Bessent and U.S. Trade Representative Jamieson Greer met Thursday with Swiss President Karin Keller-Sutter. Greer is also meeting with his Chinese counterpart in Geneva Saturday.

U.S. President Donald Trump previously announced tariffs of 145% on China, leading to retaliatory 125% levies from Beijing. Trump at the time also announced similar tariffs on over a dozen other countries.

Saturday’s meeting marks the first official trade talks between the two countries since Trump first announced the tariffs.

The president on Thursday suggested an amended 80% tariff ahead of the talks.

“80% Tariff on China seems right! Up to Scott B,” Trump wrote on Truth social, referencing Bessent.

He at the time did not specify if the 80% figure represented a goal or opening negotiating stance.

Trump also urged China to “open up its market,” in a separate social media post.

On Wednesday Trump told reporters at a news conference he would not consider relenting on the 145% tariffs on China.

GENEVA — Talks between U.S. and Chinese delegations over tariffs that have threatened to upend the global economy ended after a day of prolonged negotiations and will resume Sunday, an official told the Associated Press.

There was no immediate indication whether progress was made Saturday during the meeting that lasted more than 10 hours between U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and a delegation led by Chinese Vice Premier He Lifeng.

The official who spoke to the AP requested anonymity because of the sensitivity of the talks, which could help stabilize world markets roiled by the U.S.-China standoff in the wake of President Trump’s tariffs. The talks have been shrouded in secrecy, and neither side made comments to reporters on the way out.

Several convoys of black vehicles left the residence of the Swiss ambassador to the United Nations in Geneva, which hosted the talks aimed at de-escalating trade tensions between the world’s two biggest economies. Diplomats from both sides also confirmed that the talks took place.

Saturday’s talks were held in the sumptuous 18th century Villa Saladin overlooking Lake Geneva. The former estate was bequeathed to the Swiss state in 1973, according to the Geneva government.

Prospects for a major breakthrough appear dim. But there is hope that the two countries will scale back the massive import taxes — tariffs — they have imposed on each other’s goods, a move that would relieve world financial markets and companies on both sides of the Pacific hat depend on U.S.-China trade.

Trump raised U.S. tariffs on China to a combined 145% last month, and China retaliated by hitting U.S. imports with a 125% levy. Tariffs that high essentially amount to the countries boycotting each other’s products, disrupting trade that last year topped $660 billion.

Even before the talks began, Trump suggested Friday that the U.S. could lower its tariffs on China, saying in a social media post that “80% Tariff seems right! Up to Scott.″

Sun Yun, director of the China program at the Stimson Center, noted it will be the first time He and Bessent have talked. She doubts the Geneva meeting will produce any substantive results.

“The best scenario is for the two sides to agree to de-escalate on the … tariffs at the same time,” she said, adding that even a small reduction would send a positive signal. “It cannot just be words.”

Since returning to the White House in January, Trump has aggressively used tariffs as his favorite economic weapon. He has imposed a 10% tax on imports from almost every country in the world.

But the fight with China has been the most intense. His tariffs on China include a 20% charge, which he says is meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States. The remaining 125% involves a dispute that dates back to Trump’s first term and comes atop tariffs he levied on China back then, which means the total tariffs on some Chinese goods can exceed 145%.

During Trump’s first term, the U.S. alleged that China uses unfair tactics to give itself an edge in advanced technologies such as quantum computing and driverless cars. These include forcing U.S. and other foreign companies to hand over trade secrets in exchange for access to the Chinese market, using government money to subsidize domestic tech firms, and outright theft of sensitive technologies.

Those issues were never fully resolved. After nearly two years of negotiation, the United States and China reached a so-called Phase One agreement in January 2020. The U.S. agreed then not to go ahead with even higher tariffs on China, and Beijing agreed to buy more American products. The tough issues — such as China’s subsidies — were left for future negotiations.

But China didn’t come through with the promised purchases, partly because COVID-19 disrupted global commerce just after the Phase One truce was announced.

The fight over China’s tech policy now resumes.

Trump is also agitated by America’s trade deficit with China, which amounted to $263 billion last year.

Tariffs on Switzerland

In Switzerland on Friday, Bessent and Greer also met with Swiss President Karin Keller-Sutter.

Trump last month suspended plans to impose hefty 31% tariffs on Swiss goods — more than the 20% levies he placed on exports from the European Union. For now, he has reduced those taxes to 10% but could raise them again.

The government in Bern is taking a cautious approach. But it has warned of the impact on crucial Swiss industries such as watches, coffee capsules, cheese and chocolate.

“An increase in trade tensions is not in Switzerland’s interests. Countermeasures against U.S. tariff increases would entail costs for the Swiss economy, in particular by making imports from the USA more expensive,” the government said this month, adding that the executive branch “is therefore not planning to impose any countermeasures at the present time.”

The government said Saturday that Swiss exports to the United States were subject to an additional 10% tariff, and another 21% beginning Wednesday.

The United States is Switzerland’s second-biggest trading partner after the EU — the 27-member-country bloc that nearly surrounds the wealthy Alpine country of more than 9 million people. U.S.-Swiss trade in goods and services has quadrupled over the last two decades, the government said.

The Swiss government said it abolished all industrial tariffs at the start of 2024, meaning that 99% of all goods from the United States can be imported into Switzerland duty-free.

Wiseman, Tang and Keaten write for the Associated Press. Wiseman and Tang reported from Washington and Keaten from Geneva.

Analysts have low expectations of a breakthrough, but host Switzerland hopes ‘roadmap’ will emerge.

China’s trade envoy He Lifeng has met United States Treasury Secretary Scott Bessent in Switzerland for talks aimed at easing a trade war between the superpowers that is roiling global markets.

The first official engagement, since the US slapped a 145 percent tariff on Chinese goods, prompting a retaliatory 125 percent duty from China, began on Saturday at an undisclosed location in Geneva, Switzerland, according to the Chinese state news agency Xinhua.

A motorcade of black cars and vans was seen leaving the home of the Swiss ambassador to the United Nations in the suburb of Cologny, The Associated Press news agency reported.

A diplomatic source, speaking to AP on condition of anonymity because of the sensitivity of the meeting, said the sides met for about two hours before departing for a previously arranged luncheon.

The trade dispute, which effectively amounts to a mutual boycott of products, was prompted by US President Donald Trump last month when he announced sweeping duties on almost every country in the world, which are now subject to a 90-day reprieve while negotiations take place.

Experts believe China may be looking for the same 90-day waiver as well as a reduction of the 145 percent tariff – Trump suggested that it could be reduced to 80 percent, saying in a Truth Social post on Friday that the amount “seems right”.

Trump’s press secretary, Karoline Leavitt, said on Friday that the US would not lower tariffs unilaterally, adding that China would need to make concessions as well.

Bessent has said the meetings in Switzerland would focus on “de-escalation”.

“The best scenario is for the two sides to agree to de-escalate on the … tariffs at the same time,” said Sun Yun, director of the China programme at the Washington, DC-based Stimson Center, adding even a small reduction would send a positive signal.

“It cannot just be words,” she said.

Distrust running high

Trump has justified the punitive tariff by citing unfair trade practices and accusing Beijing of failing to curb the export of chemicals used to produce fentanyl, a lethal synthetic opioid.

China, for its part, says it will not bow to “imperialists” and bullies.

With distrust running high, both sides have been keen not to appear weak, and economic analysts have low expectations of a breakthrough.

Trump has suggested the discussions were initiated by China. Beijing said the US requested the discussions and that China’s policy of opposing US tariffs had not changed.

Swiss Economy Minister Guy Parmelin met both parties in Geneva on Friday and said the fact that the talks were taking place was already a success.

“If a roadmap can emerge and they decide to continue discussions, that will lower the tensions,” he told reporters on Friday, saying talks could continue into Sunday or even Monday.

On May 2, the New Taiwan Dollar (NTD) surged 3.3% against the U.S. dollar, marking the largest single-day gain in 23 years. As an export-driven economy, with exports accounting for 70% of GDP, this sharp currency appreciation is devastating to Taiwan’s economy.

Since April 2, when Trump proposed “reciprocal tariffs” on trading partners, Asian currencies, except China’s, have appreciated throughout April, particularly those of U.S. allies. The NTD rose 3.64%, the Japanese yen 4.44%, the South Korean won 3.6%, and other Asian currencies gained between 1.76% and 2.97%.

Including the first two days of May, the NTD’s appreciation reached 6.49%, far outpacing other Asian currencies. Why?

On May 2, Taiwanese market observers and exporters were puzzled by the rare single-day surge until May 3, when Taiwan’s trade negotiation team confirmed that the first round of talks with the U.S. began on May 1. This revealed the cause: U.S. pressure triggered the NTD’s surge.

Facing public skepticism, Taiwanese authorities denied any link between the currency surge and U.S.-Taiwan trade talks, attributing it to local market expectations of NTD appreciation and a rush of foreign investment into Taiwan’s stock market.

However, the authorities couldn’t explain why the NTD’s appreciation far exceeded that of other Asian currencies. Japan, for instance, held two rounds of trade talks with the U.S. and Japanese stocks continued to rise, but the yen depreciated in early May.

Perhaps the Taiwan authorities have not lied, but have only revealed part of the truth. Even so, the psychology of the local exchange market’s expectation of the appreciation of the Taiwan dollar fully reflects the pessimistic expectation of the Taiwan-US trade talks. Unlike Beijing’s hardline stance toward Washington, Taipei is eager to “pay tribute”.  Despite officials’ assurances of not yielding excessively to the U.S., the market’s reaction is the most honest.

Within a month, the NTD’s 6.49% rise is a trend the U.S. welcomes, as it narrows the U.S. trade deficit with Taiwan and pushes Taiwanese tech firms to set up factories in the U.S.

Currency appreciation shrinks exporters’ profits, drives industrial relocation, and directs firms to their main clients’ locations. High-margin tech firms have no choice but to establish U.S. factories to avoid tariffs and currency pressures. Low-margin traditional industries, like machinery and petrochemicals, rely on government subsidies to survive.

Of course, Taiwan’s traditional industries have another big market to choose from, namely the Chinese market. In other words, China has also benefited from the inward investment brought about by the U.S. tariff war.

Over the past four years, the trend is clear: Taiwanese tech firms serving U.S. clients have increasingly set up U.S. factories, but only larger firms—around a few hundred—have done so. Mid-sized tech firms, influenced by TSMC, may also invest in the U.S. during Trump’s current term, but their numbers won’t exceed 1,000 due to high U.S. production costs.

In comparison, there are tens of thousands of Taiwanese companies doing business in China, totaling 120,000 if we include companies that used to do business in China but withdrew due to various factors.

In recent years, due to the U.S.-China trade war, rising wages, and the COVID-19 pandemic, Taiwanese capital has noticeably withdrawn from China. Nevertheless, cross-strait trade (including Hong Kong) accounts for about 35% of Taiwan’s exports, making China the most critical market for Taiwanese businesses. Taiwanese companies that will set up factories in the U.S. are all large corporations with major customers in the U.S. and a sizable capitalization.

Thus, the NTD’s sharp appreciation severely impacts Taiwanese exporters targeting the Chinese market, particularly the electronic components sector, which accounts for over half of Taiwan’s exports to China. Mentioned in the previous article, TSMC’s overseas factories only achieve significant profits in China, and Taiwan’s semiconductor supply chain maintains robust exports to China.

It is important to note that Taiwan is one of the very few economies in the world that maintains a trade surplus with China, mainly because Beijing looks the other way and doesn’t care if bilateral trade is reciprocal. Taiwan bans 2,509 Chinese import items, far exceeding China’s restrictions on Taiwanese goods.

In other words, excessive NTD appreciation not only accelerates Taiwanese capital’s shift to the U.S. but also to China and Southeast Asian economies, making it a catastrophic event for Taiwan’s economy.

With TSMC being asked by Trump to invest an additional $100 billion in the U.S., speculation that Taipei might be overly conciliatory to Washington is a common concern of the market and the public. Taiwan’s leading business media even speculated that Trump’s target is an NTD-to-USD exchange rate of 1:13.3 (currently 1:31).

The 1:13.3 rate is derived from the implied exchange rate of The Economist’s purchasing power parity index, the “Big Mac Index”. Given the index’s limitations, this speculative rate reflects Taiwan’s perception of U.S. dominance and Trump’s “big appetite.”

Forecasts based on exaggerated exchange rate calculations mean that there is very little confidence in the government’s ability to defend Taiwan’s interests, and few believe that the current administration can resist U.S. pressure. The NTD’s 3.3% single-day surge indirectly validates these concerns.

Thus, the NTD’s surge reflects the likely outcome of Taiwan-U.S. trade talks: sacrificing economic interests is inevitable, and the scale will be unprecedented. After all, Taiwan is already considered “guilty” and now everyone is just waiting for the US to announce the “sentence”.

The NTD’s appreciation isn’t the end but the beginning. Taipei will not resist and will likely concede more to the U.S. than any other economy worldwide.

SEVEN new car brands are coming to the UK in 2025 – here is a list of the best ones to keep an eye out for.

Brit motor-heads are scrambling to check this guide by Autocar listing some of the incredible new cars set to launch in the UK market.

Denza

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Owned by Chinese EV giant BYD, this new brand is set to launch in the UK this year.

Denza has been around since 2010 – but now stands almost shoulder to shoulder with BYD as its premium sibling brand.

Originally a joint venture with Mercedes Benz’s parents company – the firm is now owned in full by BYD.

The first of its cars headed for Europe is the Z9GT.

The engine comes either as a 925bhp EV or an 858bhp PHEV version. 

Shortly after, a seven-seat MPV called the D9 will also release in the UK.

Although an official timeline hasn’t been set, Denza will likely join the UK market by the end of this year.

Firefly

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This budget brand is another Chinese firm set to open up in the UK.

Owned by Nio, Firefly is an EV specialist whose first car will aim to rival the Renault 5.

The impressive supermini costs as little as £16,000 in China – and could be one of the cheapest EV’s on the UK market.

Technical specifications such as power and range are yet to be released.

But it’s been speculated that the brand may use Nio’s innovative swappable battery packs.

GAC

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This brand might just be the biggest car maker that Brits have never heard of.

The joint-venture partner of Honda and Toyota owned by China is coming to the UK “very soon”.

COO Thomas Schemera confirmed that the launch would happen in the near future.

The first car to hit the UK will be the Aion UT – a hatchback billed as China’s Mini, but is actually the same size Volkswagen ID 3.

The Aion V crossover, a Model Y rival will also launch shortly after.

Mobilize

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French brand Mobilize are looking to enter the “sub-A-segment” to challenge the likes of the Citroën Ami and Micro Microlino electric quadricycles.

Owned by Renault, the Mobilize Duo has been dubbed the French car giant’s spiritual successor.

The big battery version can reportedly travel up to a whopping 100 miles.

And a van version of the car called the Bento gets rid of the single rear seat in exchange for more boot space.

Onvo

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Also parented by Nio, this Chinese brand was founded in 2024 but is already being compared to the likes of Tesla and Polestar.

The car is gearing up to land in the UK due to our lack of import tariffs on Chinese EVs.

The L60 will be the first car to arrive in the UK.

Onvo called it the most aerodynamically efficient SUV on the entire market.

It will likely come with three BYD-supplied battery packs – the largest of which will offer a 620-mile range.

Yangwang

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The prestigious Yangwang, also owned by BYD, will also be coming to the UK.

Its biggest car – the mammoth Yangwang U8 SUV – should be on its way later this year.

This off-roader can turn on a sixpence thanks to its quad motors, makes 1180bhp and has a kerb weight of nearly 3,500kg.

It can also even float in water for up to half an hour.

The incredible design is a range-extender with four motors, a 49kWh battery and a 2.0-litre turbocharged petrol engine working as a generator.

Lepas

And finally this Chinese brand which owns Jaecoo and Omoda is also getting ready to launch its third brand, Lepas, into the UK.

Owned by Chery, the Tiggo 4 Pro from Lepas will rival the Dacia Duster when it comes to the UK this year.

It is already sold in right-hand drive markets like South Africa and Australia – with it costing about £13,000 down under.

But its low price may not remain that way once it is sold here.

Jaecoo and Omoda’s focus is large, semi-premium SUVs – while Lepas will be positioned more towards the higher value end of the market.

Calls for restraint and fact-checking continue as New Delhi and Islamabad report drone and artillery attacks.

Tensions continue to mount as India and Pakistan traded accusations and attacks across their frontier in Kashmir overnight.

New Delhi and Islamabad accused one another on Friday of launching drone attacks as well as “numerous ceasefire violations” over the Line of Control (LoC) in the disputed territory. The ongoing hostilities have provoked further calls for restraint as the risk of an escalation between the two nuclear powers grows.

Pakistan launched “multiple attacks” using drones and other munitions along India’s western border on Thursday night and early Friday, the Indian army said, claiming it had repelled the attacks and responded forcefully, although it did not provide details.

Islamabad has denied any cross-border attacks and instead accused Indian forces of sending drones into Pakistani territory, killing at least two civilians. The Pakistani military claims to have shot down 25 Indian drones in recent days.

Local officials in areas near the Line of Control reported an unusually intense night of artillery exchanges that left at least four civilians dead and wounded 12, with firing continuing well into Friday morning.

Pakistan Information Minister Attaullah Tarar said the Indian army statement was “baseless and misleading”, and that Pakistan had not undertaken any “offensive actions” targeting areas within Indian-administered Kashmir or beyond the country’s border.

Islamabad had earlier denied attacking Pathankot city in India’s Punjab state, Srinagar in the Kashmir valley, and Rajasthan state’s Jaisalmer, saying the accusations were “unfounded” and “politically motivated”.

South Asia analyst Michael Kugelman warned that the spread of “disinformation is escalating as rapidly as the hostilities”.

“Both are very dangerous for different reasons. Follow the fact checkers,” he posted on social media, urging the public to rely on verified sources.

‘None of our business’

India launched “Operation Sindoor” on Wednesday targeting what it described as fighter camps inside Pakistan in retaliation for an attack on tourists in Indian-administered Kashmir.

New Delhi has accused Islamabad of backing the perpetrators, an allegation Pakistan strongly denies.

Since then, exchanges of fire, drone activity, and airspace violations have intensified, leaving nearly four dozen people dead, the majority in Pakistan.

The ongoing clashes mark one of the worst escalations between the nuclear-armed rivals in recent years. The pair has fought three full-scale wars over Kashmir, which both claim, since they gained independence from Britain in 1947.

World powers from the United States to China have called on both sides to exercise restraint.

US Secretary of State Marco Rubio spoke with leaders in both countries on Thursday and urged “immediate de-escalation”, his spokeswoman said.

Vice President JD Vance echoed the call but added that the US would not get involved.

“What we can do is try to encourage these folks to de-escalate a little bit, not going to get involved in the middle of a war that’s fundamentally none of our business,” he told Fox News.

Iran’s Foreign Minister Abbas Araghchi, currently visiting New Delhi, also urged restraint. “We hope that India and Pakistan will prevent the escalation of tension in the region,” he said upon arrival.

China, a close ally of Pakistan, called India’s cross-border strikes “regrettable” and urged both governments to show restraint.

“India and Pakistan are and will always be each other’s neighbours,” the Chinese Ministry of Foreign Affairs said in a statement. “We urge both sides to act in the interest of regional peace and stability and refrain from any actions that could worsen the situation.”

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Both US stock markets and the US dollar rose to their highest levels in a month as risk appetite continued to recover ahead of US–China trade negotiations.

US and Chinese officials are scheduled to meet in Switzerland over the weekend, aiming to de-escalate tensions that may lead to mutual trade embargoes. The Trump administration imposed tariffs of up to 145% on imports from China, while China retaliated with 125% tariffs.

President Trump told reporters that tariffs on China may come down, expressing optimism about progress in the upcoming trade talks. “I think it’s going to be substantive,” Trump said at the White House while announcing a trade agreement with the UK. “I think it’s a very friendly meeting. They look forward to doing it in an elegant way.” When asked whether he would lower tariffs on China, he responded, “It could be. We are going to see. Right now you can’t get any higher. It’s at 145%, so we know it’s coming down. I think we’re going to have a very good relationship.”

US stock markets and the dollar had experienced sharp sell-offs throughout much of April amid growing recession fears. Late last month, however, the US president shifted his stance on China, signalling that tariffs would be reduced “substantially.” Since then, Wall Street and the dollar have reversed course, with investors appearing to reload US assets amid signs of easing trade tensions.

“This country will hit a point that you better go out and buy stock,” Trump said on Thursday, referring to the trade deal with the UK and a recently signed tax bill as potential catalysts for the markets. “This country will hit a point that you better go out and buy stock now.”

Trump’s comments and growing optimism over trade talks have sparked a broad-based risk-on rally in financial markets, particularly in US assets. Equities climbed, the dollar strengthened, oil prices rebounded, Bitcoin surged, while gold retreated.

Stocks rally abroad

US stock markets rose for a second consecutive session on Thursday, with the Dow up 0.62%, the S&P 500 rising 0.58%, and the Nasdaq Composite gaining 1.07%. European equities continued to outperform their US counterparts, with the DAX nearing a record high, up 1.02%, and the Euro Stoxx 600 advancing 1.1%. Meanwhile, futures are pointing to a higher open on both sides of the Atlantic markets.

Asian markets were mixed in Friday’s session as investors remained cautious ahead of the trade talks. As of 5:00 a.m. CEST, Japan’s Nikkei 225 rose 1.32%, the ASX 200 gained 0.41%, while South Korea’s Kospi slipped 0.1% and Hong Kong’s Hang Seng Index declined by 0.15%.

US dollar rebounds sharply

In currency markets, the US dollar index surged by over 1% to above 100 for the first time since 11 April. The dollar’s rebound weighed on other major currencies in the G10 group, particularly the euro. The EUR/USD pair fell to just above 1.12 during Friday’s Asian session, its lowest level in nearly a month, down from a multi-year high above 1.15 in late April. The euro had been seen as a haven asset, having gained around 1,000 points (100 points = 1 US cent) against the dollar since February.

Gold retreats while oil surges

Gold prices declined for a second consecutive day, as easing safe-haven demand pressured the precious metal. Gold futures on COMEX dropped 2.5% on Thursday, with a slight rebound to $3,318 per ounce as of 5:00 a.m. CEST. Spot gold fell 3.6% over the past two sessions to $3,313 per ounce.

In contrast, crude oil prices surged to their highest level in a month. West Texas Intermediate (WTI) futures rose above $60 per barrel by 5:10 a.m. CEST, marking a 3.5% increase since Thursday’s open. Brent futures similarly rallied, climbing above $63 per barrel.

Bitcoin reaches three-month high

Bitcoin jumped as much as 6.3% to trade above $103,000 (€91,770), the highest level since 31 January. Cryptocurrencies, often considered high-risk assets, have demonstrated a strong positive correlation with US technology stocks. Trump’s pro-crypto stance previously lifted Bitcoin reach an all-time high of over $109,000 on 20 January.

The Israeli military has been altering commercial drones to carry bombs and surveil people in Gaza, an investigation by Al Jazeera’s Sanad verification agency has found.

According to Sanad, drones manufactured by the Chinese tech giant DJI have been used to attack hospitals and civilian shelters and to surveil Palestinian prisoners being forced to act as human shields for heavily armoured Israeli soldiers.

This is not the first time DJI drones have been modified and used by armies. There were similar reports about both sides of the Russia-Ukraine war in 2022.

At the time, DJI suspended all sales to both countries and introduced software modifications that restricted the areas where its drones could be used and how high they could fly.

However, DJI has not stopped selling drones to Israel.

Israel’s use of DJI drones

The Israeli army’s use of DJI drones is not new.

By 2018, DJI drones were reportedly in extensive use across numerous divisions in the Israeli military. The Israeli campaign group Hamushim found evidence that Israeli military-trained operators were using DJI’s Matrice 600 model to drop tear gas on civilian protesters during the following year’s Great March of Return in Gaza.

Despite their previous deployment by the Israeli military, their lethal use against civilians and protected targets in Gaza, as documented in this investigation, is unprecedented.

Al Jazeera has reached out to Israeli authorities to request comment on the findings of this investigation but has received no response by time of publication.

Sanad has documented several DJI drones that have been adapted for military use.

However, it is the powerful DJI Agras drone, developed for agricultural use, that is the most significant.

According to its manufacturers, the DJI Agras can carry a substantial payload and is capable of precision flight.

As Sanad’s investigation shows, it can also be used to deliver an explosive payload to targets beyond the reach of conventional military forces.

In addition to the DJI Agras, the DJI Mavic has been used by the Israeli military across Gaza for reconnaissance and target acquisition.

Similarly, the compact DJI Avata drone, designed for recreational filming, has been repurposed by the Israeli military to navigate and map the intricate tunnel networks beneath Gaza.

Attacks on northern Gaza

By late 2024, Israel had laid siege to Gaza’s north, pushing the population to the brink of famine and imposing conditions described as “apocalyptic” by United Nations observers.

Residents and humanitarian organisations reported an alarming number of what appeared to be civilian drones armed with explosives.

In an incident documented by displaced civilians, footage shared on July 17, 2024, shows a DJI Agras drone dropping a bomb onto the IHH Turkish charity’s building in Jabalia, northern Gaza, less than 100 metres (330ft) from a school serving as a shelter and aid distribution centre.

In November in Beit Lahia, northern Gaza, a DJI Agras drone dropped a bomb in a residential neighbourhood where civilians had fled after Israeli shelling of a UN-operated school-turned-shelter.

People who witnessed the bombing told Sanad the attack seemed calculated to instil fear.

Surveillance and urban warfare

Beyond direct attacks, Israeli-modified DJI drones have been used extensively for surveillance and tactical operations throughout Gaza.

In a further incident, footage obtained by Al Jazeera Arabic from one Israeli drone shows a DJI Avata helping to track an unnamed Palestinian being used by heavily armed Israeli soldiers as a human shield – an illegal practice under international law – in Shujaiya in December 2023.

The individual is seen opening the school’s doors to make sure there were no Palestinian fighters inside, closely monitored by another drone that captured the entire operation.

DJI double standards: Gaza vs Ukraine

In 2022, in response to complaints from Ukrainian officials that DJI was sharing critical data with their Russian adversaries, the drone manufacturer suspended all sales to its retail partners in both countries.

DJI explained the move: “We will never accept any use of our products to cause harm, and we will continue striving to improve the world with our work.”

Despite evidence of DJI drones being weaponised by the Israeli military in Gaza, DJI has had no such response.

Responding to direct inquiries from Sanad, DJI said: “Our products are for peaceful and civilian use only, and we absolutely deplore and condemn the use of [DJI] products to cause harm anywhere in the world.”

A subsequent direct query asked if it plans “to halt sales in Israel or implement measures similar to those taken in the Russia-Ukraine conflict”.

But DJI did not respond to the query not has it undertaken any measures to halt sales or impose software restrictions on where drones can fly over Gaza, allowing continued military deployments of their drones by the Israeli military.

A NEW electric vehicle from China is set to shake up the UK market — and it’s over £5,000 cheaper than the Tesla Model Y.

The electric SUV, the Changan Deepal S07, promises style, technology, and value — and it’s set to arrive on British roads in just a few months.

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The Italian-designed Deepal S07 starts from £39,950, putting it in direct competition with the Skoda Enyaq and Hyundai Ioniq 5, and narrowly undercutting fellow Chinese challenger XPeng G6.

Only the Renault Scenic beats it on price, starting at just under £37,000.

While the Deepal S07 grabs attention on price, its 295-mile claimed range falls short compared to rivals.

Tesla’s Model Y leads the pack with up to 387 miles, and even the base version offers 311 miles.

This makes the S07 less appealing to drivers worried about long trips between charges.

Charging is another area where the S07 struggles to keep up.

With a maximum charge speed of 92kW, it takes 48 minutes to go from 10 per cent to 80 per cent battery.

Many rivals, like the Hyundai Ioniq 5, can manage that in under 20 minutes, meaning less time spent waiting around at public chargers.

Where the Deepal S07 does shine is in its impressive list of standard equipment.

Buyers get a panoramic glass roof, powered tailgate, a huge 15.6-inch touchscreen, wireless Apple CarPlay and Android Auto, a head-up display with augmented reality navigation, and a premium 14-speaker sound system with speakers built into the headrests.

Inside, the car offers heated and ventilated front seats, creating a luxury feel that’s often missing from similarly priced models.

The interior design is minimalist but modern, dominated by the large central touchscreen and clean, flowing lines.

On the outside, the Deepal S07 was styled in Italy to create a sleek, dynamic look.

The S07 has also achieved a maximum five-star Euro NCAP safety rating.

It comes packed with advanced driver assistance systems as standard, including adaptive cruise control, driver fatigue monitoring, and a 360-degree surround-view camera.

Changan may not be a household name in the UK, but it’s one of China’s largest car manufacturers, with a history going back over 40 years.

The company has joint ventures with major brands like Ford and Mazda in China and even runs a UK research centre in Birmingham.

Looking ahead, Changan has ambitious plans for the UK market.

Alongside the S07, it will also bring in the smaller Deepal S05 SUV, which will be offered in both electric and hybrid versions.

An electric pick-up truck, the E07, is also on the cards, though details are still under wraps.

For now, the focus is on the S07, which is expected to go on sale this summer.

The first customer deliveries are planned for September.

Changan plans to work with traditional UK dealerships and has set up a European parts hub in the Netherlands to make sure customers get proper support and aftercare.

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May 7 (UPI) — Former Sen. David Perdue, R-Georgia, is the United States’ newest ambassador to China after being sworn in Wednesday afternoon at the White House.

President Donald Trump hosted Perdue’s swearing-in ceremony in the Oval Office.

“Our new ambassador brings to this position a lifetime of experience at the highest levels of business and politics,” Trump said in a video recording of the swearing-in ceremony that was posted on Truth Social.

“Over four decades in business, he rose to lead several major American corporations,” Trump said, “including as the president and CEO of the footwear giant Reebok … and later CEO of Dollar General.”

Trump said Perdue, 75, did a “great job” and lived and worked in Singapore and Hong Kong for several years while negotiating business deals.

“Following his business success as an executive, David stepped forward to serve the American government and was elected to the United States Senate in Georgia,” Trump said.

“As our lead diplomat in Beijing, David will work to promote American interests in stability in the Indo-Pacific,” Trump told those attending Perdue’s swearing-in ceremony.

He will “help stop the flood of Chinese fentanyl from across the border, seek fairness and reciprocity for the American worker and ensure safety of our citizens overseas, and promote peace in the region and in the world,” Trump added.

The president called the relationship between the United States and China “complex and complicated” and said he is confident Perdue will do well.

“This is a very, very extraordinary man, and you’re going to do a fantastic job,” Trump said. “Say ‘hello’ to President Xi while you are there.”

Secretary of State Marco Rubio swore in Perdue with Perdue’s wife, Bonnie, at her husband’s side during the about 5-minute ceremony.

“Mr. President, I am humbled to be in this office today,” Perdue said afterward.

“I want the world to know that I know this man personally,” he continued. “He loves this country, and I am glad to be your man in China.”

Trump gave Perdue the order that he signed to nominate him as the ambassador to China to end the ceremony.

Perdue represented Georgia in the U.S. Senate for one term from 2015 to 2021.

He replaces former ambassador to China R. Nicholas Burns, whom former President Joe Biden nominated for the position in 2021.

Perdue was sworn in as Chinese and U.S. representatives met in Switzerland to discuss a potential trade agreement.