Articles in this Cluster
02-06-2025
US Defense Secretary Pete Hegseth reassured Indo-Pacific allies that the US will support them against increasing military and economic pressure from China, particularly regarding Taiwan. Hegseth stated that China is "rehearsing for the real deal" and that the threat is "real" and "could be imminent." He called on Indo-Pacific countries to increase defense spending and urged them not to rely too heavily on China economically, warning that this could deepen China's influence and complicate defense decisions. China's delegation responded by accusing Hegseth of making "groundless accusations" and attempting to provoke trouble. Hegseth also emphasized the need for a strong network of allies and partners to counter China's growing military capabilities, and stressed that the US is not interested in going it alone. Australian Defense Minister Richard Marles welcomed Hegseth's assurance, but noted that the Trump administration's aggressive trade policies were counterproductive.
02-06-2025
Australia's defence minister Richard Marles has called on China to explain its "extraordinary" military build-up, saying it is the "fundamental issue" for the region and that Beijing needs to provide greater transparency and reassurance. The Philippines defence minister Gilberto Teodoro Jr also criticized China's actions in the South China Sea, calling them "absolutely irresponsible and reckless". The comments were made at the Shangri-la Dialogue, an Asian defence summit in Singapore, where the US and its allies have dominated the discussion due to China's lower-level representation. Marles cited Australia's own transparency in its defence strategy as an example of what China should follow, and emphasized the importance of compliance with international law.
02-06-2025
China has refuted US claims that it broke the Geneva trade agreement, instead accusing the US of breaching the deal by increasing tech export restrictions and revoking visas for Chinese students. The Chinese commerce department said the US actions "seriously undermine" the deal and vowed to take measures to safeguard its rights and benefits. The tensions between the US and China have risen beyond trade, with the Pentagon chief warning of an "imminent" threat from China in the Indo-Pacific region, and China's defense ministry criticizing the US for being the "biggest 'troublemaker' for regional peace and stability."
02-06-2025
China has accused the US of "provoking new economic and trade frictions" in response to US President Donald Trump's claims that Beijing had violated a trade truce agreed by the two nations. China's Commerce Ministry said it was "strictly implementing" the consensus of the trade talks, while blaming the US for taking steps that "seriously undermine" the agreement. The tensions have escalated over China's export controls on rare earth minerals and associated products, which the US had expected China to ease following the trade talks. The US has imposed measures against China, including limiting critical technology sales and restricting Chinese students studying in the US, prompting China to threaten "resolute and forceful measures" to safeguard its interests.
02-06-2025
South Korea is holding a presidential election on June 3, with foreign policy being a central issue due to ongoing tensions with China and North Korea, as well as relations with the US. The frontrunner, Lee Jae-myung of the Democratic Party, has taken a "pragmatic" approach, suggesting a more balanced relationship with China and the US, while maintaining that the US alliance is crucial. His opponent, Kim Moon-soo of the conservative People Power Party, has criticized Lee's stance, warning that it could lead to closer ties with China. Former Congresswoman Michelle Steel, born in South Korea, expressed concern about China's "bullying" behavior in the region, while David Eunkoo Kim, a conservative youth organization founder, accused Lee of having "pro-North Korean and pro-Chinese agendas" and being a "North Korea risk."
02-06-2025
South Korea's next president faces a challenging balancing act between maintaining a strong defence alliance with the US and managing trade relations with China, according to analysts. The winner of the snap presidential election, expected to be Lee Jae-myung, will need to navigate Seoul's defence spending and its stance on a potential conflict over Taiwan, while dealing with economic and security troubles. Lee has indicated a softer stance on Beijing and has sidestepped committing to helping Taiwan in the event of an invasion by mainland China.
02-06-2025
The United States is facing a shortage of rare earth magnets due to China's halt on exports as part of a trade war. American automakers are the hardest hit, with production potentially being cut back in the coming days and weeks. China produces 90% of the world's high-performance rare earth magnets, and the US has become reliant on them. Efforts to restart the US rare earth industry have been slow due to high production costs and China's competitive advantage. New factories are set to open in the US this year, but they will not be able to meet demand immediately, and companies are struggling to find alternative sources.
02-06-2025
US tech curbs have pushed China to innovate, according to law professor Angela Zhang, an expert on technology regulation and antitrust in China. Tariffs imposed by the US will have direct and indirect effects on China's tech sector, making it harder for Chinese products to compete in the US market, but also driving Chinese companies to cut costs, scale up, and explore other markets. Chinese firms are likely to adopt cost-effective strategies, such as open-sourcing AI models, and deepen trade with other regions, including Europe, Asia, Latin America, and Africa. Zhang also emphasizes the need for precautions when regulating AI, likening it to "buying insurance" to mitigate potential risks.
02-06-2025
Asia-Pacific markets were mostly lower on Monday following President Donald Trump's announcement that he would double tariffs on steel imports to 50%, effective from June 4. Japan's Nikkei 225 fell 1.33%, while South Korea's Kospi slipped 0.22%. Australia's S&P/ASX 200 and Hong Kong's Hang Seng index also declined. China's, Malaysia's, and New Zealand's markets were closed for holidays. U.S. stock futures fell, with S&P 500 futures trading down 0.3%. The move comes amid ongoing trade tensions between the U.S. and China, with China refuting Washington's claims of violating the Geneva trade agreement.
02-06-2025
U.S. stocks had a strong May, with the S&P 500 rising 6.2% and the Nasdaq Composite jumping 9.6%, their best month since November 2023. However, investor sentiment may shift with ongoing trade tensions between the U.S. and China. U.S. President Donald Trump has threatened to take a tougher stance on China, and raised tariffs on steel imports to 50% from 25%. Trump and Chinese President Xi Jinping may discuss trade negotiations this week, which could ease tensions. The U.S. personal consumption expenditures price index rose 2.1% annually in April, in line with forecasts, and the nonfarm payrolls report for May is expected to provide further insight into the economy's health. Investors are also watching bond markets, with Warren Buffett's Berkshire Hathaway doubling its ownership of short-term Treasuries.
