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European Union Warms Tone Towards China

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The European Union is about to mark 50 years of diplomatic relations with China by “deepening trade and investment cooperation,” according to the EU’s trade commissioner, who spoke in Beijing on Thursday, as reported by a Chinese source.

During a meeting with Chinese Vice-Premier He Lifeng, Maros Sefcovic made these remarks, according to a report from Xinhua News Agency. The meeting took place on the first day of his two-day visit, with the officials dining at the Diaoyutai State Guesthouse. The European Commission did not release its own account of the discussion.

Earlier that day, Sefcovic met with Chinese Customs Minister Sun Meijun before attending an event hosted by the EU Chamber of Commerce in China, where he engaged with European businesses.

At the business event, the Slovak commissioner reportedly reinforced a shift in tone that European Commission President Ursula von der Leyen has emphasized in several speeches this year.  

In those speeches, von der Leyen—who has previously taken a firm stance on China—has moderated her language, stressing that the EU could expand trade ties with Beijing and even explore new agreements.

These public remarks were intended to signal to the United States that Europe has options. However, according to EU sources, they were also meant to indicate to China that Brussels remains open to credible proposals.

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China as a Challenge in the U.S. Annual Threat Assessment Report

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A recent U.S. Annual Threat Assessment from the U.S. Intelligence community highlights the military and cybersecurity threats posed by China, particularly concerning its ambitions toward Taiwan. The report indicates that while Beijing has made notable advancements in enhancing its military capabilities, this progress has been inconsistent. Additionally, the document emphasizes that China’s growing military prowess empowers it to confront the United States with conventional weapons and execute cyberattacks that pose significant risks to critical American infrastructure and assets.

Additionally, the report indicates that China is poised to surpass the United States as a global leader in artificial intelligence by 2030. This ambition is part of a broader strategy to enhance its technological edge, with potentially profound implications for international security. CIA Director John Ratcliffe highlighted that China is actively working to restrict the flow of chemicals used in fentanyl production into the United States, acknowledging the economic repercussions this crisis has on its own businesses.

The tensions between the U.S. and China have been further fueled by the fentanyl crisis in America, which remains the leading cause of drug overdose deaths. In response to Beijing’s perceived inaction in curbing the supply of this dangerous substance, the Trump administration implemented a 20% tariff on Chinese imports. Conversely, Chinese diplomats, including Liu Pengyu, have accused the U.S. of exaggerating the “China threat” to justify its military dominance. Liu emphasized that China is dedicated to peace, stability, and progress while safeguarding its sovereignty and security, suggesting that the U.S. should take responsibility for its own public health challenges.

The intelligence report highlights the military pressure that China exerts on Taiwan, noting that the People’s Liberation Army (PLA) is actively enhancing its capabilities to assert control over the island and counter any potential U.S. intervention. This development raises significant concerns among American policymakers, reflecting Beijing’s increasing readiness to employ military force to enforce its territorial claims. However, it is essential to recognize that China is grappling with substantial domestic challenges, including widespread corruption, an aging population, and economic vulnerabilities that could undermine the Communist Party’s hold on power. Analysts anticipate that China’s economy may continue to decelerate, driven by declining consumer and investor confidence. These internal issues could complicate Beijing’s external ambitions and reshape its strategic calculations. As the geopolitical landscape evolves, the interplay between China’s external aspirations and its internal realities will be crucial in determining the future of U.S.-China relations and the dynamics of regional security.

Author: Liza Barbakadze

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Washington’s new tariffs on Chinese ships

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A major debate is underway in Washington this week between U.S. officials and representatives of the American maritime, export and agricultural sectors, which was triggered by the imposition of additional tariffs on Chinese-made and Chinese-owned ships calling at U.S. ports.

The president’s plan calls for a revival of the local shipbuilding industry by imposing tariffs of up to $1.5 million on ships bound for China.

In arguing for the critical importance of imposing the tariffs, the USTR argues that Chinese government subsidies harm American businesses by limiting competition and investment opportunities, while also posing economic and national security risks that Beijing could use strategically in a potential conflict.

The measure, which enjoys bipartisan support in Congress, is intended to discourage ocean carriers from buying Chinese ships, while the proceeds from the tariffs would be used to revive the U.S. shipping industry.

These potential port fees have limited the availability of ships needed to deliver agricultural, energy, mining, construction, and manufacturing products to international consumers.

Shipowners have already withdrawn their bids to ship coal to the United States in the future, as a result of the USTR’s sanctions, Xcoal Energy & Resources CEO Ernie Thrasher said in a letter to U.S. Commerce Secretary Howard Lutnick.

As Thrasher notes, the imposition and enforcement of these penalties could result in a complete halt to U.S. coal exports for 60 days, jeopardizing $130 billion in shipments. In addition, these penalties could increase the market value of U.S. coal supplies by 35%, making them uncompetitive on the world market.

The proposed tariffs could also make it harder for U.S. exports of other energy products, such as oil, liquefied natural gas and fuel oil, the American Petroleum Institute said in a submission to the USTR.

More than 200 companies, trade groups and individuals have already submitted comments or requested to speak at the hearing, which will take place over two days in Washington this week. Nearly all groups oppose a proposal by the Office of the U.S. Trade Representative to impose millions of dollars in new tariffs every time a Chinese-made ship enters a U.S. port.

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Chinese Premier met with American Senator

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On March 23rd, in Beijing, after the annual business summit, the Chinese Premier, Li Qiang, held a meeting with American Senator Steve Daines and the representatives of the large U.S. businesses, such as Pfizer and Apple.

Notably, Daines is the first American politician to visit China after Donald Trump’s inauguration. He is a member of the Senate Foreign Relations Committee and Trump’s avid supporter. Apart from this, he was involved in the negotiations between the U.S. and China on trade issues during Trump’s first term as President.

The meeting is especially important to China after the increased tariffs from the American side – the country is trying to expand foreign investment and convince businesses that the country’s economic environment is favorable. The Premier called on American companies to „resist protectionism“ and defend globalization.

According to Li Qiang, China will increase access to markets in various sectors for foreign investors. He warned the representatives that „breaking supply chains would only deepen crises“.

The Premier also remarked that China is ready for „unexpected shocks caused by external sources,“ and the government will introduce new policies to guarantee the smooth operation of the Chinese economy where it’s needed.

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China-Iran ties could prompt a tougher US stance

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Analysts anticipate that Washington will increase pressure on Tehran in response to last week’s trilateral nuclear talks between China, Iran, and Russia – an expectation that aligns with the growing consensus in the U.S. against both Beijing, the host of the meeting, and Iran.

The discussions, which urged an end to “illegal sanctions” on Tehran, took place just days after Iran dismissed Donald Trump’s proposal to restart negotiations on its nuclear program. 

Wang met with Iranian and Russian deputy foreign ministers on Friday, stressing China’s hope that “all parties will meet each other halfway and resume dialogue and negotiations as soon as possible.” He also urged the U.S. to “show political sincerity and return to the talks as soon as possible.”

Meanwhile, the U.S. and five other nations convened a closed-door Security Council meeting to discuss the matter, with Britain suggesting that sanctions could be reinstated if Iran expanded its nuclear program. According to China’s foreign ministry, Wang further expressed opposition to any “forced intervention” by the United Nations Security Council.

Despite facing resistance, China remains committed to pursuing multilateral negotiations on the nuclear issue. Experts believe Beijing will use these discussions to strengthen its role as a key mediator in the Middle East while expanding its regional influence.

During the March 14 talks in Beijing, the three nations reaffirmed their dedication to non-proliferation and jointly condemned “sanctions, pressure, or the threat of force.” Additionally, Wang proposed a five-point plan to address the Iranian nuclear issue, which emphasized adherence to the Joint Comprehensive Plan of Action (JCPOA) nuclear deal. The U.S. abandoned this agreement under President Donald Trump during his first term.

The U.S. on Thursday issued new Iran-related sanctions, targeting entities including for the first time a Chinese “teapot,” or independent refinery, and vessels that supplied crude oil to such processing plants.

It was Washington’s fourth round of sanctions on Iran’s oil sales since President Donald Trump said in February he was re-imposing a “maximum pressure” campaign including efforts to drive down the country’s exports to zero. Trump aims to stop Tehran from obtaining a nuclear weapon and funding militant groups.

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BRICS’ Push for Alternative Currency Sparks Trump’s Backlash

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During his visit to Washington last October, India’s Minister of Commerce and Industry, Piyush Goyal, eagerly shared photos of his discussions with Biden administration officials Gina Raimondo and Katherine Tai. He also spoke publicly about the strong, long-standing ties between India and the United States.

However, Goyal’s recent visit to Washington earlier this month painted a starkly different picture. This time, he left without providing any details about his meetings with the newly appointed US Commerce Secretary, Howard Lutnick, and Trade Representative, Jamieson Greer. A week after his return, he shared a single photo with Greer on social media, stating only that their discussion was “forward-looking” and guided by an “India First” perspective.

Goyal’s sudden trip to the US, which had originally been planned for April, was prompted by US President Donald Trump’s announcement that starting April 2, reciprocal tariffs would be imposed on all US trading partners.

An even bigger concern for India—and other members of the BRICS—was Trump’s strong stance against their attempts to lessen dependence on the US dollar in international trade. The former president dismissed BRICS as “dead” and warned of a 100 percent tariff hike on imports from the bloc’s nations, accusing them of “playing games with the dollar.”

Despite Trump’s claims, BRICS has struggled to move forward with the idea of establishing an alternative currency due to its lack of a cohesive structure, making it difficult for member states to reach a consensus on such an ambitious initiative. In February 2025, it was announced that Brazil had decided not to join the common currency plan. With this decision, the country safeguarded its close economic ties with the United States.

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China’s Global Times praises Trump for defunding USAGM

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China’s state-owned newspaper, the Global Times, expressed approval on Monday regarding budget cuts to the U.S. Agency for Global Media (USAGM). This agency oversees broadcasters such as Voice of America (VOA) and Radio Free Asia (RFA), who have a history of critical reporting on Beijing.

In an editorial published Monday, the Global Times accused VOA of biased reporting on China-related issues. The editorial claimed that “almost every malicious falsehood about China has VOA’s fingerprints all over it.” It listed alleged examples, including coverage of human rights concerns in Xinjiang, territorial disputes in the South China Sea, and the so-called “China virus” narrative.

Other nationalist commentators also took aim at VOA and RFA. This included a columnist from the Communist Party-affiliated Beijing Daily and Hu Xijin, the former editor-in-chief of the Global Times. Additionally, former Cambodian Prime Minister Hun Sen joined the criticism, writing on social media that the funding cuts were a significant step in “eliminating fake news, disinformation, lies, distortions, incitement, and chaos around the world.”

Funding cuts stem from an executive order signed by Trump on Friday, which mandated reductions in operations for seven federal entities, including USAGM and the Wilson Center think tank. The move aligns with broader efforts to scale back foreign aid and cut the civilian workforce. 

The impact of the funding reduction has been swift. As of Monday, VOA’s broadcasts have ceased, and its website has not published any new content beyond March 15. RFA continues to release content for the time being, though it is bracing for upcoming staff furloughs.

The cuts have sparked debate in Washington. While Secretary of State Marco Rubio has publicly supported Uygur’s rights, the State Department has remained vague on the situation. 

Democrats have strongly opposed the decision to defund USAGM’s media outlets. U.S. Senator Jeanne Shaheen condemned the move as “unfathomable.” She vowed to protect legally mandated USAGM functions and argued that Trump’s actions threaten press freedom.  “If President Trump gets his way, those who depend on US-supported independent media as alternatives to Chinese- and Kremlin-run media outlets and those living under authoritarian regimes will lose a critical lifeline,” she said.

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China’s Growing Interests in Africa: Strategic Ports and Energy Resources

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China’s interests in the African continent are growing stronger every day. Chinese state-owned companies have built, financed, and now control a quarter of African ports.

Of the 231 ports in 31 African countries, China has invested in 78. The majority of them are in western Africa. As Paul Nantulia, a fellow at the Center for Strategic and International Studies at the National Defense University in Washington, points out, the main reason for this is China’s global trade ambitions, in the achievement of which the region’s strategic location plays a major role.

China Harbor Engineering Company (CHEC) was the contractor and engineering company for the Lekki Deep Sea Port in Nigeria. The company acquired a 54% stake in the port, which it operates under a 16-year lease, and receives financing from the China Development Bank.

According to China’s current five-year plan, Africa is a key part of its trade strategy. Currently, investment flows to the continent are driven by two projects: the Belt and Road Initiative and Beijing’s “exit policy” – the government’s drive to help local firms enter international markets, including Africa.

According to the five-year strategic plan document, three of the six trade corridors pass through the African continent, namely East Africa, the Egypt-Suez region, and Tunisia.

In addition, China has been interested in African liquefied natural gas in recent years and has been investing heavily in it. Until now, China has been more interested in African oil, but now the main target of Chinese businesses is African liquefied natural gas, to, on the one hand, meet increased demand and, on the other hand, reduce dependence on Australian gas.

Mozambique is one of the target countries. After the discovery of 5 trillion cubic meters of natural gas in the Rovuma Basin off the country’s northern coast, it has become an important point for global natural gas supply. China National Petroleum Corporation (CNPC) owns 20% of the $ 30 billion Rovuma liquefied natural gas project.

China is also involved in one of the projects in Mozambique, “Coral Floating Liquefied Natural Gas”, the first liquefied natural gas which was sold in 2022.

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Georgian Dream Pushes Legislative Crackdown Amidst Political Crisis

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At a recent briefing, Mamuka Mdinaradze, Secretary of the Parliamentary Majority, reaffirmed the ruling party’s intent to tighten legislative controls in response to what he called external interference and manufactured instability. Citing the global USAID scandal and alleged foreign influence, Mdinaradze argued that Georgia must “completely reclaim our country” and prevent outside forces from “keeping our homeland in a permanent state of chaos with non-existent problems and fabricated accusations.”

As part of this agenda, the ruling party has outlined a series of legislative measures to be implemented over the next two months, including:

  1. Tougher Anti-Drug and Juvenile Justice Policies – Stricter penalties for drug use and tighter regulations on juvenile offenders.
  2. Migration Restrictions – Reinforcing control over immigration policies.
  3. NGO Oversight and Foreign Influence Restrictions – (citing) “Norms that provide for the mandatory participation of non-governmental organizations in the process of public decision-making will be removed from absolutely all laws and by-laws.”
  4. Media Regulation – The introduction of a British-style media law to enforce journalistic standards and curb foreign-funded media operations.
  5. Foreign Agent Law Expansion – A new bill mirroring the U.S. Foreign Agents Registration Act (FARA), replacing Georgia’s previous, milder version, which, according to Mdinaradze, NGOs have failed to comply with.

Additionally, the government plans to establish a state-managed grant fund for public organizations, aiming to replace foreign funding sources with domestic alternatives.

Mdinaradze also issued a warning against external pressure on Georgia’s political landscape, vowing retaliation against any attempts to interfere in the country’s sovereignty: (citing) “We promise the public that the more pressure, coercion, blackmail, and attempts to encroach on Georgia’s independence, unrest, and chaos in our country, the more severe the response… no one will ever dare to interfere in Georgia’s internal affairs, encroach on its independence, and disrespect the decisions of the Georgian people.”

These measures, framed as efforts to safeguard Georgia’s sovereignty, signal a significant shift towards a more restrictive governance model, further escalating tensions between the ruling party and opposition forces.

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Chinese Economic Plans After the US Tariffs

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After the blow to the economy after the American sanctions, China announced a „special action plan“ to boost consumption.

Notably, other factors, including COVID-19 and the property sector economic downturn, also contribute to the decreased demand for production. Deflation—the constant reduction in prices—plays an additional role. This creates a problem because it pushes consumers to spend less and wait for prices to drop lower.

According to the General Office of the Central Committee, the plan includes a rise in consumption and domestic demand, as well as enhancing consumption abilities by boosting income and pension, bettering health insurance, and reducing burdens. Apart from this, the project includes expanding the tourism sector and aims to turn cold regions into winter tourism destinations. This will be aided by unilateral visa-free programs for certain countries and facilitating entry into the country. According to Chinese officials, despite the plan not having „anything too new“, it has written up specific actions that the local governments should follow.

Fulfilling the announced plan is important in another way, too: it will reduce Chinese dependency on exports and investments and turn the economy into a consumption-driven one.

It is also interesting that the consumption of Russian goods has increased in China – some shops sell sweets or toys made in Russia and present themselves as spreading not only the consumption of Russian goods but also Russian culture. Said shops have turned up in the country after 2022, which could be caused by the warming relations between the two countries after Russia invaded Ukraine.

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