NYTimes News (CN) Articles | Generated by AI
Xi Jinping Courts Global Allies to Counter the US, but “Charm Offensive” May Fall Short
China’s leader, Xi Jinping, is leading a diplomatic campaign to persuade other countries not to yield to pressure from the Trump administration on tariffs, aiming to show that China will not be isolated in the trade war. Recent efforts include high-level meetings with the EU, Japan, and South Korea, as well as state visits to Vietnam and Malaysia. Xi has portrayed China as a defender of the global order and criticized the U.S. for unilateral actions. However, China’s own economic practices and the risk of U.S. retaliation have made countries wary of aligning with Beijing. The EU, Japan, and South Korea have resisted China’s attempts to form a united front against U.S. tariffs. Vietnam, while welcoming Xi, has also sought to maintain a balance between China and the U.S., fearing retaliation from both sides. China’s efforts to build a coalition against U.S. tariffs have so far been met with caution and resistance, highlighting the complexities of global trade politics.
China’s Economic Dilemma Under the Double Blow of Tariffs and Deflation
China’s economy faces significant challenges due to deflation and a trade war with the United States. Deflation, exacerbated by a property crisis, has led to stagnant prices and reduced profits for businesses, affecting workers’ incomes. The trade war, marked by high tariffs imposed by the U.S., threatens to further strain China’s economy, which relies heavily on exports. The government has struggled to boost domestic spending to counter deflation, and the property sector’s collapse has eroded many families’ wealth. The gig economy has grown as traditional jobs disappear, but these jobs are often low-paying and insecure. The situation is dire for many workers, with some resorting to temporary gig work to make ends meet. The government is pushing companies to provide better benefits for gig workers, but alternatives to this precarious work are scarce.
NVIDIA CEO Jensen Huang Visits China, Meets with Officials Including He Lifeng
Nvidia CEO Jensen Huang met with Chinese trade officials in Beijing, including He Lifeng, China’s vice premier for economic policy. This meeting occurred just a day after the U.S. government initiated an investigation into whether Nvidia violated rules with its sales to China. Huang emphasized the significant impact of U.S. controls on Nvidia’s business in China and pledged to continue producing compliant products and serving the Chinese market.
The visit comes amid fluctuating relations between Nvidia and the U.S. government. Earlier in the week, Nvidia announced a $500 billion investment in AI infrastructure in the U.S., which was praised by the Trump administration. However, the company also disclosed that it would need a license for any sales to China, potentially leading to a $5.5 billion loss on inventory. The House Select Committee on the Chinese Communist Party is investigating Nvidia’s chip sales across Asia, particularly to the AI startup DeepSeek.
Nvidia’s stock price dropped 6% following the investigation news. The company has become one of the world’s most valuable due to high demand for its advanced chips, which are crucial for AI systems. Chinese tech companies have been scrambling to acquire Nvidia’s chips amid U.S. controls, leading to stockpiling and a thriving black market for smuggled chips. The U.S. government’s efforts to restrict chip exports to China began under President Biden, with rules imposed in 2022. Nvidia responded by modifying a leading AI chip to comply with U.S. thresholds, resulting in the H20 chip, which is specifically for the Chinese market. Despite these challenges, Nvidia reported $130 billion in global revenue for the last fiscal year, an 114% increase from the previous year.
U.S. Takes Measures Against DeepSeek and NVIDIA
The U.S. government is taking steps to restrict Nvidia’s sale of AI chips to China and is considering penalties against DeepSeek, a Chinese AI startup. This move comes after DeepSeek’s low-cost AI system, DeepSeek-V3, disrupted the tech industry by demonstrating significantly lower development costs compared to U.S. competitors. The U.S. is concerned that China’s advancements in AI could have wide-ranging implications for national security and geopolitics. The House Select Committee on the Chinese Communist Party is investigating Nvidia’s chip sales in Asia, focusing on whether the company knowingly provided DeepSeek with critical technology. The Trump administration is also evaluating a Biden-era rule that limits the number of AI chips companies can send to different countries. The crackdown on Nvidia and DeepSeek is part of a broader effort to maintain U.S. technological supremacy and prevent China from gaining an edge in AI.
Travel Alerts, Study Abroad Warnings: How the US-China Trade War Impacts Civilian Exchanges
The article discusses the impact of the U.S.-China trade war on civilian exchanges, including travel and education. China has warned its citizens to be cautious about visiting the United States and studying there, citing trade tensions. The U.S. has revoked some Chinese student and scholar visas, and there have been accusations of cyberattacks by American universities. Both countries have started using these exchanges as bargaining chips, which has led to a deterioration in relations. Economic and political considerations have always been intertwined with these exchanges, but recent actions have caused panic and uncertainty among Chinese students and travelers. The article highlights the potential dangers of escalating tensions and the need for both sides to maintain a balance to avoid full-scale conflict.
Confronting Taiwan’s Chipmakers, China and US Strategies Differ Sharply
Both the United States and China are heavily dependent on Taiwan for semiconductors, a critical component in the global tech supply chain. This dependency has become a significant challenge in their ongoing trade war. Both countries view Taiwan’s dominance in semiconductor manufacturing as a national security risk and are trying to boost their own chip-making capabilities. However, replicating Taiwan’s decades-old industry has proven difficult.
The U.S. has initiated a national security investigation into chip imports, which could lead to tariffs. The Trump administration has also restricted the sale of AI chips to China. In contrast, China has exempted a significant portion of advanced chips from its tariffs on the U.S., recognizing its need for these components and aiming to avoid disruptions in its supply chain.
China’s approach, which considers the location of chip design rather than final assembly for tariff purposes, undermines U.S. efforts to revive domestic chip manufacturing. This move benefits Chinese chip makers and complicates the global supply chain, which involves multiple countries and stages of production.
The complex nature of semiconductor manufacturing, involving multiple countries and stages, makes it difficult to impose tariffs without significant logistical and economic challenges. The trade war between the U.S. and China threatens to make chips and consumer electronics more expensive, potentially dragging down both economies.
Trump Has Blown the Trade War
Trump’s trade war with China has quickly spiraled out of control, threatening global trade and damaging America’s international image. Trump and his team underestimated China’s resilience and preparedness, assuming China would bend to his will due to its reliance on U.S. exports. However, China has diversified its export markets and reduced its overall dependence on trade, making it better equipped to withstand the economic pressure. Trump’s aggressive tactics have backfired, causing market instability and public criticism. China, with its historical and cultural resilience, is better positioned to endure the economic strain, while Trump’s negotiating position weakens as U.S. consumers and investors face rising inflation and market volatility. China’s leaders are less vulnerable to domestic pressure, and the country has taken steps to strengthen its economy and promote domestic consumption. Trump’s approach has not only failed to achieve his trade goals but has also increased the risk of a global recession, making China appear as a more stable and reliable economic partner.
“Comrade Trump” Builds a Great China
In China, President Trump is often referred to as “Comrade Trump,” a nickname that humorously suggests he is a patriotic son of China advancing its interests by causing chaos in the United States. This nickname reflects a broader dynamic where many Chinese see Trump’s policies, particularly his tariffs, as ultimately benefiting China’s economic power.
The article highlights the extensive influence of Chinese sellers in the global e-commerce ecosystem, particularly on platforms like Amazon, Temu, and Shein. These platforms rely heavily on Chinese manufacturers and sellers, making them integral to global retail and the global economy. For instance, Amazon’s top sellers are predominantly based in China, and companies like Temu and Shein spend significant amounts on advertising on platforms like Meta and Google.
Trump’s tariffs are unlikely to achieve his goal of bringing manufacturing jobs back to the United States. Instead, they will likely increase prices for American consumers and push Chinese sellers to diversify their markets, potentially strengthening China’s global economic influence. The tariffs may also drive Chinese sellers to expand into other regions like Africa, Latin America, and Southeast Asia, further globalizing China’s economic reach.
The article also notes that Chinese sellers have found ways to evade tariffs, such as using third-party companies to conceal the value or origin of their goods. This practice has helped Chinese businesses avoid significant tariff payments. Additionally, the tariffs could benefit Chinese sellers if they lead to a recession in the United States, as consumers would seek cheaper goods, which many Chinese sellers specialize in.
The Chinese government’s investments in education, infrastructure, and research over the decades have made Chinese labor significantly cheaper than American labor, further complicating Trump’s tariff strategy. The article concludes by noting that while Trump’s policies may cause short-term pain, many Chinese sellers see them as ultimately benefiting China’s rise as a global economic leader.
China’s Q1 GDP grows 5.4% year-on-year, tariffs may affect future growth
China’s GDP grew by 5.4% in the first quarter of 2025 compared to the same period last year, driven by a surge in exports and manufacturing investments. However, this growth is threatened by escalating tariffs imposed by President Trump, which have reached up to 145% on more than half of China’s exports to the United States. These tariffs have already led to some factories in southern China suspending operations, raising concerns about potential unemployment.
Chinese officials and economists agree that boosting domestic consumer spending is crucial to reduce dependence on foreign markets. The government has taken steps to encourage this, such as providing subsidies for household purchases. However, Chinese consumers remain cautious due to significant losses in the housing market and a lack of alternative investment options.
The Chinese central bank has allowed the renminbi to depreciate slowly against the dollar, but this may not be enough to offset the high tariffs. A sharp devaluation could lead to financial instability. The article also highlights the broader economic challenges, including stagnation in the real estate sector and the reluctance of consumers to spend, even on basic goods like groceries.
How China Controls the Global Rare Earth Industry
In 2010, China imposed an embargo on rare earth metal exports to Japan, which lasted seven weeks. This action, prompted by a territorial dispute, led to significant changes in the global supply chain for these metals. After the embargo, China consolidated its control over its mineral resources, rooting out corruption, crushing smugglers, and placing the industry under state control. This move put the world, especially Japan and the United States, on notice about their dependence on Chinese rare earth metals.
Japan has since diversified its supply sources, including from Australia, while the United States remains heavily reliant on China for rare earth metal processing. This dependence has left American industries, including automakers, aerospace companies, and defense contractors, vulnerable. China’s control over the rare earth industry is further solidified by its production of 90% of the world’s magnets, which are crucial components in various technologies, from electric motors to military applications.
China’s actions have been driven by strategic considerations, with leaders like Xi Jinping emphasizing the importance of maintaining the West’s dependence on Chinese supplies for national security. The U.S. has struggled to develop alternative sources, with high costs and regulatory hurdles hindering domestic production. The Mountain Pass mine in California is the only active rare earth mine in the U.S., but its production is minimal compared to China’s output. The global market for rare earths is small, making it less attractive for significant investment, especially given the competition from government-backed Chinese industries.
Hong Kong Post to Stop Sending Mail with Enclosed Items to the US
Hong Kong has announced that its postal service will no longer send packages containing goods to the United States, marking its first move in the escalating trade war between China and the U.S. This decision comes after President Trump closed a loophole that allowed retailers to send goods from China and Hong Kong to the U.S. without paying tariffs. Starting May 2, U.S. Customs and Border Protection will begin collecting tariffs on shipments worth less than $800.
Hong Kong Post cited President Trump’s tariffs as the reason for the suspension and criticized the U.S. for being “unreasonable, bullying, and imposing tariffs abusively.” The postal service will contact senders who have not yet shipped their packages to return the items and refund their postage. The public in Hong Kong is advised to be prepared for high and unreasonable fees due to the U.S.’s actions.
China’s Steel Plant Sparks Dispute, New Test for Sino-British Relations
A dispute over a Chinese-owned British steel mill has strained U.K.-China relations, complicating efforts by Prime Minister Keir Starmer to improve ties. The British Parliament’s emergency takeover of the mill in Scunthorpe, Lincolnshire, to prevent the closure of two blast furnaces and the loss of 2,700 jobs, has raised concerns about Chinese investment in sensitive industries. The Chinese company, Jingye, refused subsidies and vital raw materials, leading to accusations of bad faith and potential sabotage. The British government is now questioning whether to allow further Chinese investment in sensitive sectors. China has warned Britain against politicizing the dispute, while the U.K. views better trade relations with China as crucial for economic growth and a hedge against U.S. protectionism. The dispute comes at a delicate time, with recent high-level visits and investments aimed at improving relations, but also with ongoing tensions over issues like Hong Kong and cyberattacks. The government faces another decision on whether to approve a new Chinese embassy near London’s financial district, which critics oppose due to potential spying concerns.
Dollar’s Decline Significant, Global Asset Safe Haven Status Under Pressure
The U.S. dollar has been declining against major currencies, raising questions about its status as a safe haven in global financial markets. This decline has been particularly steep since President Trump announced tariffs on nearly every country’s imports, leading to a roughly 8% drop in the dollar’s value this year. The dollar’s fall has made imports from countries like the eurozone, Japan, and the UK more expensive for Americans, even before tariffs are applied.
Investors and Trump’s advisers had expected the dollar to strengthen with the implementation of tariffs, but the opposite has occurred. The magnitude of the tariffs has caused significant market turbulence, leading to simultaneous sell-offs in U.S. stocks and government bonds, a rare and worrying scenario. The confusion over Trump’s tariff plans has added to investor uncertainty.
The dollar’s role as a central pillar of the global financial system means its volatility can have destabilizing effects. Nearly 90% of all foreign-exchange trades involve the dollar, and essential commodities like oil are priced in dollars. Economists now see higher odds of a U.S. recession due to escalating trade tensions, which could compel the Fed to lower interest rates, further pressuring the dollar.
The Fed’s independence is crucial for maintaining the dollar’s stability. If Trump seeks to undermine this independence, it could further destabilize the dollar. The potential for a new Fed chair after Jerome Powell’s term ends in 2026 adds to the uncertainty. Some experts suggest that the dollar’s slide might be due to more fundamental concerns beyond just economic outlook shifts, such as policy volatility and recession risks.
Chen Chong’s Career Rebirth: New Version of “The Wedding Banquet” as a Cool Mom
Joan Chen, a renowned actress, is experiencing a career resurgence with her role as the mother in the remake of “The Wedding Banquet,” directed by Andrew Ahn. Chen initially met with director Ang Lee about starring in the original 1993 film but did not end up playing the lead role. Instead, she now portrays the mother of the bride, a character who is a vocal LGBTQ ally and a source of both humor and heartbreak. Chen’s performance has been well-received, earning her praise at the Sundance Film Festival and marking a significant comeback in her career.
Chen’s career has been diverse and impactful. She started acting in China at a young age and later moved to the United States, where she gained recognition for roles in films like “The Last Emperor” and “Twin Peaks.” She has also directed films and published a memoir. Chen’s recent roles, including her performance in “Didi,” have showcased her versatility and depth as an actress. Her personal experiences, particularly her journey as a mother, have influenced her performances, adding a layer of authenticity and emotional resonance to her roles.
Chen’s recent success has also brought back memories of the aspects of Hollywood she dislikes, such as extensive press tours. Despite this, she feels rejuvenated and driven by a phone call with her mother on her 60th birthday, which inspired her to continue pursuing her artistic goals. Chen’s career revival is a testament to her enduring talent and her ability to adapt to changing roles and times.
“China’s Shock” Teaches America a Lesson, But Trump Misses the Essential Issue
The article discusses the impact of the “China Shock” on the U.S. economy, particularly the surge in imports from China following the normalization of trade relations in the early 2000s. This led to significant job losses in American manufacturing, especially in labor-intensive industries like clothing and furniture. The article argues that President Trump and his supporters misinterpret the lessons of the “China Shock,” focusing on trade policies rather than the broader economic changes and their impact on workers and communities.
Economists point out that the real lesson of the “China Shock” is not about trade but about the toll rapid economic changes can take on workers and communities. The speed and concentration of job losses were unprecedented, and communities heavily reliant on manufacturing struggled to adapt. Many workers found themselves in lower-paying service jobs or left the labor force altogether, leading to increased rates of addiction and premature death.
The article also critiques Trump’s tariff policies, suggesting they could cause similar or even more severe disruptions. The tariffs announced by Trump could have devastating consequences, including layoffs in industries he aims to help. Economists and policy experts argue that such drastic measures could lead to excessive costs with few benefits and that a more gradual approach would be wiser.
The article concludes by noting that communities affected by the “China Shock” have begun to recover through long-term, tailored strategies rather than broad national policies like tariffs. However, Trump’s policies risk forcing these communities to endure another round of rapid economic changes, which could be as devastating as the first.
Why China Might Bring an Economic Disaster to Europe
China’s economic challenge to Europe has escalated, with fears that a flood of cheap, subsidized goods from China could weaken European industries. This situation arises due to high tariffs imposed by the U.S. under President Trump, which have redirected Chinese exports towards Europe. European leaders are caught between avoiding confrontation and protecting their economies. Ursula von der Leyen, the European Commission president, has vowed to monitor Chinese imports for dumping and has called for a balanced approach. However, the unity of Europe is being tested, with some leaders like Spain’s Pedro Sánchez advocating for closer ties with China to hedge against U.S. tariffs. The economic relationship between Europe and China is complicated by China’s closed market and significant trade deficits. Recent diplomatic exchanges have highlighted tensions, with Europe demanding concessions from China and China portraying Europe as a close trading partner. The EU is preparing for a potential economic disaster and is hoping to navigate the situation carefully until the summer.
Trump’s All-In Bet on Trade War Threatens Other Key Talks with China
Trump’s decision to focus solely on winning a trade war with China has isolated the U.S. from its allies and threatens to derail other key negotiations. The trade war has led to strategic incoherence within the Trump administration, with different factions having conflicting views on the strategy. China has responded with controlled escalation, matching Trump’s tariff hikes and suspending exports of critical minerals. The situation has led to a severe crisis in U.S.-China relations, with both sides reluctant to initiate high-level communications. The trade war could push both countries to the brink of recession and has broader implications for regional power dynamics, particularly around Taiwan and the South China Sea. The administration faces internal divisions and must decide on its priorities regarding China, including whether to defend Taiwan and seek common projects with Beijing. The stakes are high, and the outcome could significantly impact the future of U.S.-China relations.
China’s Suspension of Rare Earth and Other Mineral Exports Poses Risks to U.S. Military Projects
China’s decision to restrict exports of critical minerals and magnets, which are essential for U.S. military technologies, poses a significant risk to American national security. These minerals, including neodymium, yttrium, scandium, and dysprosium, are crucial for various defense technologies such as fighter jets, warships, missiles, tanks, and lasers. China’s dominance in the rare earth supply chain allows it to control the cost and availability of these materials, giving it substantial leverage over the U.S. defense industry.
The U.S. has limited stockpiles of these minerals, which are insufficient to sustain defense companies indefinitely. The Pentagon and defense industry companies have small reserves that can meet needs for only a few months. China’s recent move to require special export licenses for these materials could lead to price increases and supply disruptions for American defense companies.
Historically, the U.S. has faced similar supply chain challenges, such as during World War II when it had to find alternative sources for bauxite. The current situation highlights the need for the U.S. to secure its own supply of critical minerals to ensure national security and defense capabilities. The U.S. has taken steps to boost domestic production, but these efforts have not yet matched China’s production capacity.
China Halts Key Mineral and Magnet Exports, Retaliating Against Trump Tariffs
China has halted exports of critical minerals and magnets, a move seen as retaliation against President Trump’s increased tariffs. This action threatens to disrupt global supply chains for industries such as automotive, aerospace, semiconductors, and military contractors. The export suspension includes six heavy rare earth metals and rare earth magnets, which are essential for various technologies including electric motors, drones, robots, missiles, and spacecraft. The new regulatory system being drafted by China could permanently prevent supplies from reaching certain companies, including American military contractors.
The export restrictions have caused concern among industry executives, who worry about potential supply shortages and production disruptions. Companies vary in their emergency stockpiles, making it difficult to predict the timing of any disruptions. The metals and magnets are crucial for a wide range of applications, from electric cars and drones to jet engines and smartphones.
China’s Ministry of Commerce and General Administration of Customs have also barred Chinese companies from dealing with an expanding list of American companies, particularly military contractors. This adds complexity to the situation and raises concerns about the availability of rare earth supplies for military purposes.
Some Japanese companies have stockpiled rare earths for over a year, learning from a 2010 embargo by China. However, many American companies keep little to no inventory, preferring not to tie up cash in costly materials. The price of dysprosium oxide, one of the metals affected by the new controls, is high, further complicating the situation.
The impact of the export halt is minimal on China’s economy but could have significant effects on the United States and other countries. Chinese customs officials are blocking exports to multiple countries, including Japan and Germany, but enforcement has been inconsistent across different ports. Some ports are more stringent, demanding tests to prove the absence of heavy rare earth metals in exports.
U.S.-China Trade War Stalls, No Signs of Easing
The trade war between the U.S. and China has escalated rapidly, with both countries imposing high tariffs on each other’s products, causing significant disruptions for global businesses reliant on this trade. The Trump administration has increased tariffs on Chinese goods dramatically, while China has responded in kind, leading to a stalemate. Businesses, from hardware stores to toy manufacturers, are facing turmoil due to these tariffs, with some halting shipments entirely. The situation has also raised concerns about potential national security crises, including the possibility of China accelerating plans for a military invasion of Taiwan and cutting off rare earth exports to the U.S. Despite some exemptions on certain electronics, the overall impact on the economy is severe, with the dollar falling and consumer sentiment declining. Both governments have shown little willingness to negotiate, and the future of the trade relationship remains uncertain.