China’s diplomats working abroad given a ‘very rare’ pay rise, sources say; China penalises US acid imports in retaliatory move as trade relations grow caustic
What we know about Israel's overnight attack on Iran
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China’s diplomats working abroad given a ‘very rare’ pay rise, sources say
South China Morning Post
Chinese diplomats posted overseas have received a pay rise of over $1,000 per month, according to unnamed sources. The rise has been applied to officials at all levels in Chinese embassies and consulates worldwide. The pay rise is seen as an attempt to stabilise the diplomatic corps after the abrupt departure of former foreign minister Qin Gang. The Chinese government rarely releases information about officials' pay scales, but diplomats are known to earn more than their counterparts in China itself.
South China Morning Post
Apple has removed WhatsApp and Threads, two popular apps owned by Meta Platforms, from its mainland China App Store. The removal is a result of Apple's efforts to comply with tightened internet regulations in China. Chinese regulatory authorities ordered the removal of the apps due to national security concerns. Apple stated that it is obligated to follow the laws of the countries in which it operates. In addition to WhatsApp and Threads, messaging services Telegram and Signal have also been dropped from the App Store. Apple's actions highlight how the company is navigating shifting regulations in China amid tensions between the US and China.
What we know about Israel's overnight attack on Iran
BBC
US officials have confirmed that Israel launched a missile strike on Iran overnight on Friday. The attack took place in Isfahan, a region of Iran, and appears to be a retaliatory move following weeks of escalating tensions between the two countries. There are conflicting reports about the scale of the attack and the extent of the damage. Iran has downplayed the significance of the incident, but has confirmed that there was an attempted strike. The International Atomic Energy Agency has confirmed that there has been no damage to Iran’s nuclear sites.
China penalises US acid imports in retaliatory move as trade relations grow caustic
South China Morning Post
China has imposed anti-dumping penalties of over 40% on imports of propionic acid from the US. The chemical is used in foods, pharmaceuticals, and pesticides. The move is seen as retaliation against similar action from the US and comes as trade tensions between the two countries continue to rise. China's Ministry of Commerce said that imports of propionic acid from the US had harmed the domestic industry. The announcement followed a proposal by the US to raise tariffs on Chinese steel and aluminium and a probe by the Office of the US Trade Representative into China's maritime, logistics, and shipbuilding industries.
South China Morning Post
Two Chinese navy ships have been stationed at a Cambodian naval base for over four months, raising questions about China's military presence in the country. Satellite images analysed by the Asia Maritime Transparency Initiative revealed that two Chinese corvettes have been consistently present at the Ream naval base since 3 December. The ships have been docked at the facility for 93% of the time since their arrival, apart from two brief periods. The report raises concerns about a rumoured secret agreement between China and Cambodia for a permanent Chinese military presence at the base.
China's technological development has run out of steam
Nikkei Asia
China's technology sector is falling into a period of stagnation, similar to Japan's experience. Chinese companies are lagging behind their US peers in artificial intelligence (AI), with a lack of advanced chips and smaller-scale operations hindering progress. Leading Chinese companies are also struggling to compete with US counterparts in terms of revenue and market capitalisation. China's innovation ecosystem is no longer market-led, with government-led venture funds dominating. President Xi Jinping's policies are the root cause of China's tech stagnation, creating a pervasive atmosphere of fear and stifling private-sector development.
China walks fine line amid Iran-Israel escalation dread
Nikkei Asia
China is caught in a difficult position as tensions rise between Iran and Israel. The escalating conflict threatens China's interests in both countries. China has been critical of Israel's actions in the Gaza war and the strike on the Iranian embassy in Syria, putting it at odds with the US, which supports Israel. However, China has refrained from criticizing Iran's recent drone and missile attack on Israel, instead expressing concern. China is Iran's largest trading partner and top buyer of its sanctioned oil. It has invested billions of dollars in Israel's high-tech sector and has become Israel's second-largest trading partner. China is trying to remain impartial and prioritize its own strategic interests. However, its attempts to mediate between Israel and Palestine had little effect, and it is finding Middle East diplomacy difficult. If the situation continues to deteriorate, China may look to insulate its investments and avoid taking sides. However, further sanctions on Iran could complicate China's ties. The 25-year strategic agreement between China and Iran has so far produced few tangible results due to existing sanctions.
South China Morning Post
Chinese electric vehicle (EV) maker Li Auto has priced its new mid-size SUV, the Li L6, over 5% cheaper than Tesla's Model Y to expand its customer base in the competitive EV market. The Li L6, priced from CNY249,800 ($34,509), uses extended-range battery technology, giving it a range of up to 212km on a single charge. Li Auto, along with Nio and Xpeng, is considered one of China's best responses to Tesla, with all three companies producing intelligent EVs with autonomous driving technology, digital cockpits and high-performance batteries.
Setback for China in Solomon Islands as pro-Beijing provincial leader loses election
South China Morning Post
The pro-China premier of the Solomon Islands' most populous province, Martin Fini, lost his re-election bid in countrywide elections. Fini, who oversaw the expansion of Chinese interests in the province of Malaita, had signed a memorandum of understanding with China's Jiangsu province. However, his failure to reclaim his seat puts the agreement in doubt. Fini's opponent, Daniel Suidani, had refused aid or investment from China and had blocked Huawei from building mobile phone towers on the island. The elections have been seen as a referendum on China's growing influence in the country.
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