Month: May 2026

Chinese Vice-Premier He Lifeng will travel to South Korea this week for trade talks with US Treasury Secretary Scott Bessent, both sides confirmed on Sunday, in the final round of negotiations before a summit between President Xi Jinping and US President Donald Trump in Beijing. The meeting is scheduled for May 12 and 13 in Seoul and comes days before Trump’s state visit to China on May 14 and 15. China’s Ministry of Commerce said He would lead a delegation to hold economic and trade consultations with the US side.…

US President Donald Trump’s landmark visit to China comes as the US-Iran war disrupts global energy supplies, fuels economic uncertainty and adds fresh strain to Washington-Beijing ties. In the latest instalment of a series examining how rivalry, interdependence and geopolitical crises are reshaping the relationship between the two powers, Amber Wang looks at the prospects for joint progress on military use of AI. China and the United States are facing calls to discuss the safe military use of artificial intelligence when their two leaders meet later this week. The technology…

Sources told the South China Morning Post that officials in Beijing had grown bolder since playing its rare earths card in October and were now less worried about tariffs. The sources, who spoke on condition of anonymity because they were not authorised to comment publicly, said Chinese officials believed Beijing had the ability to retaliate strongly and to withstand the pressure if Washington escalated. Advertisement That confidence could offer some clues as to how Beijing will approach the summit between President Xi Jinping and Trump. In October, the two countries…

When US President Donald Trump announced that 5,000 US troops would leave Germany, the immediate reading in Western capitals was political: another round in Trump’s running quarrel with European allies, triggered by German Chancellor Friedrich Merz’s criticism of Washington’s handling of the war with Iran. For Beijing, the more interesting reading is structural. The drawdown coincides with a period in which Foreign Minister Wang Yi has spent much of 2026 cultivating a “partners not rivals” framing with European counterparts. Transatlantic friction creates an analytical opening. But the strategic window is…

China unveiled some of its most advanced military technology, including robot dogs and an AI-enabled underwater system that can neutralise mines, at a defence expo. Autonomous underwater vehicles designed to be launched by submarine were one of the most noteworthy products that featured at the 2026 Chengdu Defence Technology Industry Expo in mid-April. The vessels, which can be launched from 260mm or 533mm torpedo tubes, are mainly designed to conduct high-precision deep-ocean surveys and seabed mapping, and the larger variant can travel to depths of up to 3,000 metres (9,800…

US President Donald Trump’s US$500 billion Stargate AI project is being undermined by the war with Iran, a conflict that is accelerating the decline of the United States, according to Chinese analysts. The project, designed to cement US dominance in the field of artificial intelligence, was announced in January last year, shortly after Trump’s return to power, and involves leading companies such as OpenAI, SoftBank and Oracle. A critical component of this plan was building the world’s largest AI data centre cluster in the United Arab Emirates. Advertisement But Li…

Spanish Prime Minister Pedro Sanchez’s diplomatic balancing act during his visit to China last month marked a sharp contrast with a European Union grappling with geopolitical upheaval and economic stagnation. Sanchez pushed for closer ties with Beijing while raising concerns over a persistent bilateral trade deficit and the Ukraine war, an approach that analysts said could serve as a diplomatic template for Brussels amid its fraying relationship with Washington. According to Wang Hanyi, a research fellow at the Shanghai International Studies University, the Spanish leader “achieved a delicate equilibrium between…

China may finally have a chance to loosen the grip of deflation. Yet, the more important question is whether it can do so without making households feel poorer first. The latest producer price index (PPI), which measures the prices factories charge, brings that possibility back into serious debate. China’s March PPI rose by 0.5 per cent year on year, ending 41 months of decline; it was up 1 per cent from February. After years of weak prices, cautious household spending and squeezed corporate margins, this modest return to producer-price inflation…