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US-China Trade Truce: Easing Tariffs, FBI Visit, and a New Phase in the Fight Against Fentanyl  

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After years of escalating tariffs and tense negotiations, the United States and China appear to be entering a cautious new phase in their trade relationship. Following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping in late October, both sides signaled readiness to de-escalate – though the long-term stability of this fragile truce remains uncertain.

President Trump announced an immediate end to a portion of tariffs previously imposed on Chinese goods, particularly those linked to Beijing’s alleged failure to stop the export of chemicals used in fentanyl production. The decision marked the first tangible gesture of de-escalation since talks resumed earlier this year.

However, uncertainty lingers. U.S. officials have yet to clarify which other duties will remain or at what levels. For months, both countries had threatened tariffs exceeding 100% on each other’s exports, casting a long shadow over global supply chains and investor confidence.

A significant new development added a law-enforcement layer to the economic talks. FBI Director Christopher Wray made an unannounced visit to Beijing in early November – a rare trip marking the highest-level law-enforcement contact between the two nations in years.

Sources familiar with the talks said Wray met with senior Chinese public-security and foreign-affairs officials to discuss cooperation on curbing the flow of fentanyl precursor chemicals – substances that U.S. authorities say are fueling America’s opioid crisis. The FBI chief reportedly spent two days in Beijing, arriving on a Friday evening and holding closed-door meetings throughout Saturday before departing on Sunday morning.

During these discussions, both sides agreed to explore the creation of a joint working mechanism between the FBI and China’s Ministry of Public Security aimed at improving data sharing, tracing chemical exports, and coordinating law-enforcement operations targeting smuggling networks.

At the same time, during China’s largest import Expo, American exhibitors reported a renewed sense of optimism that the “worst of the trade war is over.” U.S. companies, from agricultural exporters to tech manufacturers, showcased their products and voiced expectations that trade channels might soon reopen more freely.

This new phase represents neither victory nor defeat for either side. Instead, it reflects a pragmatic pause in a conflict that has reshaped global trade dynamics. The limited tariff rollback and renewed diplomatic tone suggest a shared recognition that continued escalation benefits no one. Yet, without a comprehensive agreement addressing the root causes of friction, this truce may prove temporary.

Author: Nia Kokhreidze

US-China Trade Truce: Easing Tariffs, FBI Visit, and a New Phase in the Fight Against Fentanyl   Read More »

China’s third aircraft carrier, the Fujian, enters service

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China’s latest and most capable aircraft carrier, the Fujian, has officially entered into service, marking a significant step forward for Beijing in solidifying its position among global naval powers and catching up with the United States in terms of naval supremacy. The Fujian is China’s third and most advanced vessel, equipped with electromagnetic catapults (EMALS). This innovative technology allows planes to take off with heavier weapon and fuel loads, so they can strike enemy targets at greater distances, making it more powerful than China’s first two Russian-designed carriers, the Liaoning and the Shandong.

The Fujian entered service on Wednesday in Hainan province at a grand ceremony, which is considered the greatest achievement of China’s military modernization. This event makes China the second country in the world, after the US, to operate an aircraft carrier equipped with EMALS technology. It is also the world’s largest conventionally powered warship, underscoring China’s engineering achievements.

President Xi Jinping personally attended the commissioning and flag-presenting ceremony at a military port in Sanya. Xi Jinping inspected the vessel and was informed about its capabilities and performance data. According to state media, Xi Jinping personally made the decision to adopt the electromagnetic catapult technology.

According to Zhang Junshe, a Chinese military expert, the transfer of Fujian to the naval fleet conditions the shift of the PLA Navy forces from coastal defense to far seas defense, with which China officially enters the era of three aircraft carriers. According to him, this step grants the fleet several key advantages. First of all, aircraft can take off with full fuel and ammunition, which increases the combat radius. In addition, the frequency of aircraft launch from the carrier significantly increases. Experts suggest that Fujian and Shandong may be deployed in the same port facing the South China Sea. This will facilitate the creation of a dual-carrier group and strategically deter the forces advocating for “Taiwan independence.” 

Although China has the world’s largest navy in terms of the number of ships, and the Fujian, with a mass of 80,000 tons, is the closest thing afloat to the US Navy’s Nimitz-class carriers, analysts say it still has a difficult path ahead before achieving full operational readiness. Because it is conventionally fueled (diesel-powered), the Fujian has a limited operating range, unlike the nuclear-powered carriers of the US. Experts estimate that due to the configuration of the flight deck, its air operations rate may only be 60% compared to what a 50-year-old US aircraft carrier achieves. China is already building a fourth carrier, which is expected to be nuclear-powered and also employ EMALS technology.

Author: Mariam Macharashvili

 

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Statement by the Chinese Ambassador to the U.S. Regarding Taiwan

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Following the meeting between Donald Trump and Xi Jinping, China once again reaffirmed the importance of its “red lines,” which it deems unacceptable for the United States and other countries to cross.

During a virtual meeting held in Shanghai that brought together American and Chinese business representatives, China’s ambassador discussed four key “red lines” — Taiwan, democracy and human rights, political path and system choice, and the right to development — which China firmly expects its partner countries to respect. The ambassador stated: “We hope that the United States will avoid crossing these red lines and thereby prevent the emergence of problems.”

The ambassador emphasized the ongoing negotiations between China and the United States, noting that the process requires “mutual respect for each other’s core interests.”

These four “red lines” have long been considered highly sensitive issues for China. Consequently, Washington’s unofficial relations with Taipei remain a major source of tension in U.S.–China relations. Moreover, periodic U.S. criticism of human rights violations in China further intensifies the strain between the two countries.

Despite the tensions, Donald Trump stated that the issue of Taiwan was not discussed during the October 30 meeting. However, following the meeting between Xi Jinping and Trump, China made it clear that respect for and adherence to its “red lines” remain essential conditions for maintaining stable bilateral relations.

Author: Keti Abuladze

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Netherlands–China Chip Dispute

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In September 2024, the Dutch Ministry of Economic Affairs seized control of the Dutch-based chipmaker, which in 2018 was purchased by partially state-owned Chinese electronics company – Wingtech Technology. The Dutch Ministry of Economic Affairs invoked the Goods Availability Act and explained that Nexperia’s governance and serious shortcomings “posed a threat to the continuity and safeguarding on Dutch and European soil of crucial technological knowledge and capabilities”.

According to the Dutch government, its control over Nexperia means that “company decisions may be blocked or reversed by the Minister of Economic Affairs if they are (potentially) harmful to the interests of the company, to its future as a Dutch and European enterprise, and/or to the preservation of this critical value chain for Europe.”

When talking about Nexperia and its parent company Wingtech Technology, it is noteworthy to mention that last year the U.S Commerce Department included Wingtech on its “entity list”, which is a list of companies perceived as entities that might pose a risk to national security and are therefore subject to export controls. In addition, in 2023, the British government didn’t allow Nexperia to buy a Wales-based chipmaker factory again due to national security concerns. All this reflects general geopolitical tensions between China and the West concerning advanced technologies like computer chips.

Back in 2024, after the Dutch Ministry of Economic Affairs seized control of Nexperia, Wingtech published a social media post that criticized the ministry’s decisions and said that the company itself “firmly opposes the politicization of commercial matters” and  “an excessive intervention based on geopolitical bias rather than a fact-based risk assessment based on the unfounded pretext of national security.” In addition, China’s Ministry of Foreign Affairs spokesman Lin Jian also commented that “relevant countries should genuinely uphold market principles and avoid politicizing economic and trade issues.”

China’s direct response was to block the re-export of Nexperia chips completed in its Chinese factories to Europe. Besides, according to Nexperia’s Chinese-based factory, the Dutch-based factory stopped supplying wafers to its Chinese factory, which further complicated the situation and made it harder to produce finished semiconductors. All this caused serious concerns among European carmakers, since these chips are crucial for building cars.

It’s important to note that approximately 70% of Nexperia chips made in Europe are sent to China to be completed and re-exported to other countries. Last month, the European Automobile Manufacturers’ Association (ACEA) said that if the Chinese ban was not lifted, Nexperia chip supplies would run out in weeks. Additionally, companies like Volvo Cars and Volkswagen warned that this shortage could lead to temporary shutdowns of their factories.

This week, China’s Commerce Ministry said in a statement that “the Netherlands should bear full responsibility” because its actions “have created turmoil and chaos in the global semiconductor supply chain”.

According to the White House, the topic of chips was also discussed during the meeting between Donald Trump and Xi Jinping in South Korea last week. Beijing has said that it will relax its export ban on automotive computer chips as part of a future trade deal between the U.S and China.

Netherlands–China Chip Dispute Read More »

China is accused of violating a British university’s academic freedom

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China is attempting to paralyse the research of Professor Laura Murphy at the UK’s Sheffield Hallam University. The research focuses on the forced labour of Uyghur Muslims (a Turkic-speaking Muslim ethnic minority in China’s Xinjiang Uyghur Autonomous Region) in China’s northwestern Xinjiang region.

The practice of pressure from the Chinese side has been ongoing for two years, including contacts with individual university staff members by individuals who identified themselves as representatives of China’s national security service. A significant fact is that access to the university’s website was also blocked from China.

The United Kingdom views this issue not only as a serious violation of human rights but has also classified the events as a breach of state sovereignty and national interest. Despite this, the university suspended the research after two years of pressure.

The role of the university administration itself is also a critical factor, as its directives prevented Professor Murphy from continuing her research process on the forced labour of Muslims. The professor initiated legal action against the university, citing the violation of her individual academic freedom.

“The university administration directly negotiated with a foreign intelligence service. They traded the professor’s academic freedom for the renewal of website access,” stated Professor Murphy.

It is important to note that many Chinese students continued their studies at the university, and naturally, this process was halted after the website access was restricted.

The Chinese Embassy in London informed the BBC that “the Helena Kennedy Centre at Sheffield Hallam University published a report containing false information on Xinjiang.” The Embassy further alleged that “some authors of these reports were found to have received funding from US agencies.” Professor Murphy, speaking to the BBC, confirmed she received funding from the US National Endowment for the Humanities, which was intended to produce an autobiographical account from individuals involved in forced labour.

The pressure reached an active phase in 2024. On April 18, 2024, “three officers from the national security service” visited the Sheffield Hallam office in China. A two-hour interrogation ensued regarding the future and current research of the Helena Kennedy Centre for International Justice (HKC), as Professor Murphy was conducting her research under the HKC’s auspices.

This came after the Centre published a December 2023 study exposing the exploitation of individuals in the garment manufacturing and supply process in the Xinjiang region. The report named the Hong Kong-based company Smart Shirts Ltd, which subsequently filed a libel lawsuit against the university. The London High Court issued a preliminary finding that the report indeed contained financially damaging content for the company, though the validity of the underlying information was not questioned. Professor Murphy’s reputation is globally significant. Her research was highly regarded by the UK, Canada, and Australia parliaments, and often served as a basis for policy recommendations. In 2023, Murphy worked at the US Department of Homeland Security, participating in the implementation of the Uyghur Forced Labour Prevention Act. She has consistently focused on researching forced labour practices throughout these years.

During her absence, Sheffield Hallam University decided in August 2024 to discontinue the research project on forced labour, despite the project still being externally funded. Murphy was informed of this decision upon her return. The university validated its decision by citing pressure from security services, arguing that the safety of staff members in both the UK and China was at risk. To resolve the issue, it is vital to consider the valid arguments of both sides. The Higher Education (Freedom of Speech) Act 2023 mandates universities to protect the academic freedom of students and professors, which primarily includes freedom of speech.

For Murphy, the university traded her personal freedom for commercial interests. However, university representatives stated that Chinese students were never a primary market for Sheffield Hallam, as only 73 students from China were recorded in the 2024–2025 academic year. Meanwhile, the Chinese Embassy noted that over 200,000 Chinese students study in the UK. Baroness Helena Kennedy, who is herself sanctioned by China over her Xinjiang statements, observed that due to financial crises, British universities have become dependent on the revenue from Chinese students, making them vulnerable to Chinese pressure.

Author: Mariam Arabashvili 

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Taiwan Rejects China’s “One Country, Two Systems” Offer

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Taiwan will not accept China’s proposal to reunify under the “one country, two systems” model and is prepared to defend its freedom and democracy, President Lai Ching-te declared on October 31, firmly rejecting Beijing’s latest attempt to bring the island under its control.

Earlier this week, China stated that it “does not rule out the use of force” against Taiwan – a remark that stands in stark contrast to the more conciliatory tone in recent state media reports, which had emphasized promises of “peaceful governance” similar to arrangements in Hong Kong and Macau.

Speaking at a military base in Hukou, President Lai addressed troops amid this politically tense backdrop, stressing that “true and lasting peace can only be secured through strength and defense readiness.”

“We must uphold the status quo with dignity and determination, firmly oppose annexation, aggression, and forced unification,” Lai said. He announced that Taiwan plans to raise defense spending to 5% of GDP by 2030 in order to strengthen its security amid China’s growing military threat.

Defending this strategy, Lai underlined that “the Taiwanese people’s protection of sovereignty and democratic way of life should not be seen as a provocation. Investing in national defense means investing in peace.” Beijing’s Taiwan Affairs Office has not yet commented on the president’s remarks.

Lai’s visit to Hukou coincided with a ceremony marking the delivery of a new battalion of M1A2T Abrams tanks, manufactured by U.S. defense company General Dynamics Land Systems. So far, Taiwan has received 80 out of 108 ordered tanks – a sign that the island remains a focal point in the intensifying U.S.-China rivalry, a confrontation that increasingly transcends regional boundaries and carries global implications.

Meanwhile, at the recent U.S.-China summit in Busan, the issue of Taiwan was conspicuously absent from public discussion. Neither Xi Jinping nor Donald Trump mentioned the topic, which may suggest a temporary, pragmatic understanding aimed at easing tensions. Yet, as Washington continues to bolster Taiwan’s defense capabilities and Beijing refuses to renounce the use of force, this diplomatic silence appears more like a strategic pause than a sign of genuine reconciliation.

Taiwan Rejects China’s “One Country, Two Systems” Offer Read More »

Meeting between Donald Trump and Xi Jinping in South Korea

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Following the meeting held on October 30, Donald Trump announced that he would sign a trade agreement with Chinese President Xi Jinping “very soon.” The meeting also covered the topic of reducing tariffs on Chinese imports. Trump told reporters that they agreed to lower the tariff on fentanyl imports from 20% to 10%. The level of tariffs imposed on Chinese products also dropped from 57% to 47%. It is noteworthy that the parties did not discuss Taiwan during the meeting.

Despite the fact that a trade deal was not signed after the meeting, a significant consensus on economic issues was reached during the meeting, including the resolution of disagreements related to rare earths. China announced that export control measures on critical minerals should be suspended for one year. In exchange for the tariff reductions, the Chinese side will purchase an “enormous amount” of American soybeans, which is a step forward for the US, as farmers were losing billions of dollars from crop sales to China due to trade disputes.

President Xi emphasized that “dialogue is better than confrontation.“ He called for deepening communication and named potential areas for cooperation:

  • Combating illegal immigration and telecommunication fraud
  • Money laundering
  • Artificial intelligence (AI)
  • Response to infectious diseases

The leaders also discussed the issue of Ukraine during the meeting. Trump and Xi Jinping agreed to cooperate to facilitate the end of the conflict.

The leaders agreed that they share a joint responsibility to address the complex problems facing the world.

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China’s Newest Refinery Ramps Up Russian Oil Imports Amid Sanctions

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China’s newly authorized Shandong Yulong Petrochemical refinery is dramatically increasing its imports of Russian crude oil in response to supply disruptions caused by Western sanctions. The refinery, with a processing capacity of 400,000 barrels per day, is expected to import 370,000–405,000 barrels of Russian crude in November – nearly double its previous intake from Russia. 

The increase in Russian crude comes after shipments from Middle Eastern and Canadian suppliers were canceled due to sanctions imposed by the UK and the EU in October 2025. 

The surge in imports reflects a broader trend among Chinese refiners seeking alternative sources in an unstable global energy market. Analysts note that while this strategy guarantees a steady feedstock supply and cost advantages, it also exposes Yulong to potential regulatory and geopolitical risks due to ongoing sanctions on Russian energy exports.

The increased Russian oil purchases underscore China’s determination to secure energy supplies among international uncertainty. For Russia, the arrangement provides a reliable outlet for its crude. The deal also highlights the growing energy dependence between China and Russia, with long-term implications for Eurasian energy trade flows.

The move may influence regional crude pricing, as Yulong’s increased demand for Russian grades could tighten supply elsewhere in Asia. Chinese refiners are reportedly taking advantage of favorable pricing for Russian barrels, allowing them to maintain refining margins even as global oil markets remain volatile.

While the arrangement ensures Yulong’s short-term operational stability, analysts caution that reliance on Russian barrels could create vulnerabilities if sanctions expand or shipping routes are disrupted.

Author: Nia Kokhreidze 

China’s Newest Refinery Ramps Up Russian Oil Imports Amid Sanctions Read More »

China signed an expanded version of a free trade agreement with ASEAN

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On October 28, China signed an expanded version of a free trade agreement with the Association of Southeast Asian Nations (ASEAN) in Malaysia, during the ASEAN summit. This association includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste, and Vietnam. It constitutes a regional grouping of 11 countries in Southeast Asia aiming to promote economic and security cooperation among them.

The framework agreement between China and ASEAN was first signed in 2002, laying the foundation for the creation of the ASEAN–China Free Trade Area (ACFTA), which came into force in 2010. This trade area covers a market of approximately 2 billion people and substantially lowers tariff barriers between member states and China. Through this trade area, China–ASEAN trade relations have increased from $235.5 billion in 2010 to nearly $1 trillion last year.

China’s representative during the 2025 agreement negotiations was China’s Premier Li Qiang, who described this agreement as an alternative to Donald Trump’s protectionist policies and increasing trade barriers. He said during his speech that “Pursuing confrontation instead of solidarity brings no benefit”, “Unilateralism and protectionism have seriously impacted the global economic and trade order, while external forces are increasing their interference in the region, many countries have been unreasonably subjected to high tariffs”, “by relying on each other and coordinating our actions, we can safeguard our legitimate rights and interests.” He also addressed ASEAN members as “good neighbors and good brothers that are close in geography, culture and sentiment.”

However, at the same time, China asserts its control over nearly the entire South China Sea and has competing claims over it with Vietnam, the Philippines, Malaysia, and Brunei. The situation is more complex and strained between the Philippines and China. In 2013, the Philippines filed a case against China with the Permanent Court of Arbitration, questioning China’s broad claims over the South China Sea, and in 2016, the tribunal ruled that China’s claims to the South China Sea have no legal basis, which China immediately rejected as void.

The situation escalated this month as well, as the Philippine Maritime Council blamed Chinese maritime forces for ramming a Filipino vessel near Thitu Island. During the ASEAN Chinese Premier Li Qiang’s remarks about unity and friendship between China and ASEAN members were met with skepticism by the Philippine president, who criticized China’s activities again.

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China gives Japan’s new prime minister Sanae Takaichi the cold shoulder

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China has yet to congratulate Japan’s new prime minister nearly a week after her appointment — a departure from diplomatic precedent that underscores the strained state of relations between the two Asian powers.

Sanae Takaichi, 64, a prominent China hawk, took office on Tuesday, becoming Japan’s first female prime minister and the fifth leader in five years. She succeeded Shigeru Ishiba, who received congratulatory messages from both Chinese President Xi Jinping and Premier Li Qiang on the day he assumed office in October last year. Beijing also promptly congratulated former prime ministers Fumio Kishida in 2021 and Yoshihide Suga in 2020.

When asked on Thursday whether Beijing planned to congratulate Takaichi, Chinese foreign ministry spokesperson Guo Jiakun said, “China made proper arrangements according to diplomatic practices.” “China and Japan are close neighbors. China’s fundamental position on its relations with Japan is consistent and clear,” Guo continued. “We hope Japan and China will… honor Japan’s political commitments on major issues… uphold the political foundation of bilateral relations, and fully advance the China–Japan strategic relationship of mutual benefit.”

Analysts warn that tensions between Beijing and Tokyo may escalate under Takaichi’s administration, given her outspoken positions on Taiwan and Japan’s wartime history.

Takaichi has long advocated for prime ministerial visits to the controversial Yasukuni Shrine, which honors Japan’s war dead — including convicted war criminals — and remains a flashpoint for Chinese anger over Japan’s 1931 invasion and occupation of China and the atrocities committed by its forces.

Her engagement with Taiwanese officials has also drawn criticism from Beijing. In April, Takaichi met Taiwanese President William Lai Ching-te in Taipei, calling for closer defense cooperation to “maintain our security guarantees.” She also met Taiwan’s Foreign Minister Lin Chia-lung in Japan in July.

Relations between China and Japan have long been marred by territorial disputes, historical grievances, and Japan’s security alignment with Washington. Despite recent efforts to expand economic cooperation and promote people-to-people exchanges, ties remain fraught — particularly on defense matters.

Those tensions are likely to deepen, as Takaichi pledged in her first policy speech on Friday to accelerate Japan’s defense spending targets by two years. The Chinese foreign ministry criticized the move, saying it heightened regional concerns about Japan’s security trajectory.

China gives Japan’s new prime minister Sanae Takaichi the cold shoulder Read More »

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