The British and Mauritian governments have made progress in negotiations over the sovereignty of the Chagos Islands, including a US-British military base on Diego Garcia. The deal, which was struck in October, involves Britain handing control of the islands to Mauritius while retaining a 99-year lease on the military base. However, the agreement has faced criticism from Mauritian Prime Minister Navin Ramgoolam and US President-elect Donald Trump's ally Marco Rubio, who have called for it to be renegotiated. The British government has offered to frontload payments to Mauritius as part of the deal, but some Chagossians have expressed concerns that they were not involved in the negotiations and will protest against the agreement.
https://www.thehindu.com/news/international/uk-and-mauritius-say-good-progress-made-in-chagos-islands-talks/article69096468.eceTop Chinese observers have advised China to remain cautious of Donald Trump's intentions despite his "bluster" as he returns to the White House for a second term. According to Wang Jisi, founding president of the Institute of International and Strategic Studies at Peking University, Trump's remarks are characteristic of his deal-making approach as a real estate tycoon, where he makes inflated demands to conceal his true intentions. The observers suggest that China should call Trump's bluff while remaining vigilant about his capabilities, noting that he may have overestimated his strength and standing.
https://www.scmp.com/news/china/diplomacy/article/3294597/china-should-not-be-misled-trump-bluster-watch-out-real-intent?module=top_story&pgtype=section#commentsChina's exports in December increased by 10.7%, exceeding expectations, as manufacturers accelerated production to meet orders before potential US tariffs under President-elect Donald Trump. The surge was reported in official customs data released on January 13, 2025, with factories in eastern China's Shandong province working to fill export orders ahead of the threatened tariffs.
https://www.boston25news.com/news/chinas-exports/AYMTU3SZIVDCXP3K7KTGTWR34I/China has asserted that the Scarborough Shoal is part of its territory and accused the Philippines of trespassing. This claim overlaps with the Exclusive Economic Zones (EEZs) of several countries including Brunei, Indonesia, Malaysia, the Philippines, and Vietnam in the South China Sea. The disputed waterway is a crucial shipping route through which approximately $3 trillion worth of commerce passes annually. A 2016 international arbitral tribunal ruling found that China's claims to the area have no basis under international law, but this decision has not been recognized by China.
https://www.thehindu.com/news/international/philippines-protests-over-beijings-escalatory-actions-in-south-china-sea/article69094984.eceChina and Russia's trade reached a record high of $244.8 billion last year, according to Chinese customs data. This marks the largest trade volume between the two countries despite Western sanctions on Moscow. The increase is slower than the 26.3% growth seen in the previous year. China has strengthened its economic ties with Russia since its invasion of Ukraine in 2022, while maintaining a neutral stance and declining to condemn the action. In contrast, trade between China and the US rose 3.7% to $688.3 billion last year, despite threats from President-elect Donald Trump to impose more aggressive trade measures.
https://www.thehindu.com/news/international/china-saw-record-trade-with-russia-in-2024-customs-data/article69097048.eceChinese exports have been growing, contradicting claims of overcapacity made by some Western politicians and media outlets. The country's export growth is a significant aspect of its economy, with the US-China trade deficit being a notable example. For instance, in 2020, China exported $481 billion worth of goods to the US, while importing $104 billion from the US.
https://www.globaltimes.cn/page/202501/1326795.shtmlChina's Ministry of Commerce has criticized new export rules on AI chips unveiled by the US as a "flagrant violation" of international trade rules. The restrictions, announced in the final days of Joe Biden's presidency, build on curbs imposed in 2023 on exporting certain AI chips to China. Beijing views this move as an abuse of export control and a disregard for industry concerns, with the Ministry stating that it will take necessary measures to protect its rights and interests.
https://www.ndtv.com/world-news/us-new-artificial-intelligence-chips-curbs-flagrant-violation-of-trade-rules-china-7466141South Korea's foreign minister, Cho Tae-yul, is set to meet with Japan's foreign minister on January 13 in Seoul as part of efforts to strengthen their relationship and address shared security concerns amidst a severe political crisis in South Korea. The talks come at a time when the country is experiencing its worst political turmoil in decades.
https://www.asiaone.com/asia/south-korea-japan-foreign-ministers-meet-amid-political-turmoil-seoulThe future of the US government's policy on artificial intelligence is uncertain due to concerns about its longevity following the presidential transition on January 20. The policy, which restricts Chinese access to US technology, may be viewed by incoming officials such as David Sacks, the proposed AI and Crypto Czar, as a tool for countering geopolitical competition or as an overly burdensome regulation that disadvantages US companies.
https://cfr.org/blog/what-know-about-new-us-ai-diffusion-policy-and-export-controls