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ISLAMABAD: Relations between China and Japan have deteriorated dramatically in the past week after Japan issued one of its strongest warnings yet regarding a potential conflict in the Taiwan Strait. China slammed on Monday Japan&#39;s decision to push ahead with a planned deployment of missiles on an island near Taiwan, according to the AFP. Its foreign ministry said Japan&#39;s missile deployment was a &quot;deliberate attempt to create regional tension and provoke military confrontation.&quot; Earlier this month, Japanese Prime Minister Sanae Takaichi had said that any attack on Taiwan could constitute a &ldquo;survival-threatening situation&rdquo; for Japan, a designation under its security laws that could allow limited collective self-defence in support of allies. The statement reflects growing concern in Tokyo over regional stability and the security of sea routes near Okinawa. China condemned the remarks, accusing Japan of interfering in its internal affairs. The Chinese foreign ministry said Tokyo was violating the One-China principle and &ldquo;sending the wrong signal&rdquo; to what it calls &ldquo;separatist forces&rdquo; in Taiwan. Beijing also lodged a diplomatic protest with officials from Japan&rsquo;s Embassy in Beijing. In parallel, China expanded its coast guard and maritime militia presence near the Senkaku Islands, a territory claimed by China but administered by Japan. These patrols have become increasingly regular and assertive, raising tensions in already contested waters. Background: China and Taiwan China and Taiwan have operated under separate governments since 1949, after the Chinese Civil War, when the Nationalist government relocated to Taiwan and the Communist Party founded the People&rsquo;s Republic of China (PRC) on the mainland. The PRC insists that Taiwan is part of &ldquo;one China&rdquo; and maintains that the Beijing government is the sole legitimate representative. Official PRC sources cite UN General Assembly Resolution 2758 to argue that Taiwan has no independent status in the UN system. At the same time, Taiwan maintains its own democratic government, military, and domestic policies. The feud reaches the United Nations&nbsp;China&#39;s permanent representative to the UN, Fu Cong, wrote in a letter to UN Secretary-General Ant&oacute;nio Guterres on Friday that &ldquo;if Japan dares to attempt an armed intervention in the cross-Strait situation, it would be an act of aggression.&rdquo; China maintains that the strait dividing mainland China from self-governing Taiwan is part of its territory. Economic pressure adds to the strainOn November 14, China issued a no-travel advisory for Japan, followed by recommendations that students reconsider enrolling in Japanese universities. Shares in Japanese tourism and retail firms fell sharply after Beijing discouraged its citizens from visiting Japan. Three Chinese airlines offered free cancellations or refunds for flights to Japan scheduled for November 15. China also suspended imports of Japanese seafood. This follows a partial easing earlier in 2025, when China resumed seafood imports from some Japanese regions, subject to strict documentation requirements. Beyond trade and tourism, two Japanese animated films scheduled for release in Chinese theaters were postponed indefinitely. State media reported that the delays were part of Beijing&rsquo;s countermeasures.&nbsp;At a routine press conference this week, He Yongqian, a spokesperson for China&rsquo;s commerce ministry, stated that PM Takaichi&#39;s remarks had &ldquo;severely damaged&rdquo; economic relations between the two nations. Where does Taiwan stand?Taiwan has maintained a measured stance amid escalating tensions while continuing to strengthen its defense posture. Authorities have expanded air and maritime surveillance, conducted regular readiness exercises, and developed missile defence and early warning capabilities. Taiwanese officials say they are closely monitoring regional developments, particularly as Chinese aircraft and ships operate near the island. Taiwan lifts restrictions on JapanAccording to AFP, Taiwan lifted all restrictions on Japanese food imports on Nov. 21&nbsp;in a show of support for Tokyo. Previously, the Taipei government had banned food imports from five Japanese regions around the site of the 2011 Fukushima nuclear accident. Taiwan&#39;s Food and Drug Administration said&nbsp;that &ldquo;Japanese food safety management measures return to normal,&rdquo; effective immediately. What is happening now?Japanese Prime Minister Sanae Takaichi said on Nov. 21 that she wants &ldquo;constructive&rdquo; ties with China and that Japan&rsquo;s stance on Taiwan remains &ldquo;unchanged&rdquo; amid the dispute with Beijing. &ldquo;At the end of last month, President Xi [Jinping] and I confirmed the broad direction of comprehensively advancing our strategic, mutually beneficial relationship and building a constructive and stable relationship,&rdquo; Takaichi told reporters. &ldquo;The government&rsquo;s position remains unchanged&rdquo; on Taiwan, she added. China, however, has signaled a cooling of diplomatic engagement. Premier Li Qiang will not meet one-on-one with Japanese Prime Minister Takaichi on the sidelines of the next G20 Summit, according to China&rsquo;s foreign ministry. &ldquo;A meeting with the Japanese leader is not on Premier Li Qiang&#39;s agenda,&rdquo; Chinese foreign ministry spokeswoman Mao Ning said last week in Beijing at a regular news briefing.

China

Central Asia

China-Japan tensions have escalated after Tokyo warned that an attack on Taiwan could trigger collective self-defence. Beijing responded with diplomatic protests, military activity, and economic pressure; Taiwan has strengthened its defence and backs Japan, as high-level China-Japan diplomacy stalls.

Tensions in East Asia: What exactly is going on?

ISLAMABAD: In eastern Ladakh, India, on Wednesday, operationalized its new Nyoma airbase close to its border with China, even as an extensive army exercise is now underway in Arunachal Pradesh on the eastern front, according to an Indian media report. The developments at the opposite ends of the 3,488-km Line of Actual Control (LAC) underscore the high military readiness being maintained along the China frontier, the report states. The report, quoting a senior officer, states, &ldquo;There is ongoing reset in bilateral diplomatic ties. Military CBMs are also being progressively strengthened but the trust deficit on the ground remains high.&quot; &quot;With no de-escalation along LAC, troops will continue to be forward deployed for 6th successive winter since multiple Chinese incursions into eastern Ladakh in April-May 2020,&quot; he said. The Indian Air Force (IAF) chief, Air Chief Marshal AP Singh, himself flew a C-130J &ldquo;Super Hercules&rdquo; aircraft from Hindon on the outskirts of Delhi to the Mudh airfield at Nyoma, among the world&#39;s highest at an altitude of 13,710 feet, to formally inaugurate the strategically located airbase.He was accompanied by Western Air Command chief Air Marshal Jeetendra Mishra. Located just about 35 km from the LAC, Nyoma has undergone an upgrade worth INR2,300 million, which included extending the original airstrip into a 2.7 km &ldquo;rigid pavement&rdquo; runway, a new ATC complex, hangars, a crash bay, and accommodation, the report states. Humanoid robots&nbsp;In a related development, Indian journalist Pravin Sawhney stated in a social media post that humanoid robots will be guarding the LAC. &quot;These humanoid robots will be guarding the LAC &amp; be part of PLAA&#39;s Combined Armed Battalions/Brigades on the LAC. The PLA [Peoples Liberation Army] has huge quantity of operational data on Indian military deployments, logistics &amp; so on since August 2020 when 5G was brought till the LAC in east Ladakh.&nbsp;More to the point: China claims Ladakh!:&quot;<figure class="fr-media"><img src="https://paktv-assets-7d41fab8.s3.eu-west-2.amazonaws.com/uploads/f9f24b2f-778b-4b57-a7f6-397862128cef-WhatsApp Image 2025-11-15 at 00.33.27.jpeg" alt="WhatsApp Image 2025-11-15 at 00.33.27.jpeg" class="fr-fil fr-dib"></figure> Although China has plans to integrate robots in its defense forces, according to UBTech, the company making the robots the tweet refers to, states following are the tasks the robots can perform: The robots can walk at a pace of 2.0 m/s, collaborative handling with AGV, can do narrow aisle sorting, co-agent specialization and coordination, sub-millimeter precision manipulation, binocular stereo vison perception and planning, waist rotation angle, 0-1.8m manipulation workspace, deep squat, overhead lifting, autonomous precision palletizing and depalletizing, 3-minute autonomous battery swapping, and 24/7 continuous operation. It remains to be seen what effect, if any, the robots will have on border security and how they will counter the operations of the Nyoma airbase by India.

India

An Indian media report, quoting a senior officer, states, 'There is ongoing reset in bilateral diplomatic ties. Military CBMs are also being progressively strengthened but the trust deficit on the ground remains high.'

India operationalizes airbase near China border in Ladakh region

ISLAMABAD: China&#39;s third aircraft carrier has entered service following a ceremony marking its handover to the navy attended by President Xi Jinping, AFP reported on Friday. The commissioning of the Fujian marks a key milestone in Xi&#39;s drive to modernize the Chinese military. According to a Chinese Navy&#39;s post on X, the Fujian was launched in June 2022 and named after Fujian Province.<div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px; line-height: 2;"><iframe id="twitter-widget-1" scrolling="no" frameborder="0" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 368px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-1&features=eyJ0ZndfdGltZWxpbmVfbGlzdCI6eyJidWNrZXQiOltdLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X2ZvbGxvd2VyX2NvdW50X3N1bnNldCI6eyJidWNrZXQiOnRydWUsInZlcnNpb24iOm51bGx9LCJ0ZndfdHdlZXRfZWRpdF9iYWNrZW5kIjp7ImJ1Y2tldCI6Im9uIiwidmVyc2lvbiI6bnVsbH0sInRmd19yZWZzcmNfc2Vzc2lvbiI6eyJidWNrZXQiOiJvbiIsInZlcnNpb24iOm51bGx9LCJ0ZndfZm9zbnJfc29mdF9pbnRlcnZlbnRpb25zX2VuYWJsZWQiOnsiYnVja2V0Ijoib24iLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X21peGVkX21lZGlhXzE1ODk3Ijp7ImJ1Y2tldCI6InRyZWF0bWVudCIsInZlcnNpb24iOm51bGx9LCJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3Nob3dfYmlyZHdhdGNoX3Bpdm90c19lbmFibGVkIjp7ImJ1Y2tldCI6Im9uIiwidmVyc2lvbiI6bnVsbH0sInRmd19kdXBsaWNhdGVfc2NyaWJlc190b19zZXR0aW5ncyI6eyJidWNrZXQiOiJvbiIsInZlcnNpb24iOm51bGx9LCJ0ZndfdXNlX3Byb2ZpbGVfaW1hZ2Vfc2hhcGVfZW5hYmxlZCI6eyJidWNrZXQiOiJvbiIsInZlcnNpb24iOm51bGx9LCJ0ZndfdmlkZW9faGxzX2R5bmFtaWNfbWFuaWZlc3RzXzE1MDgyIjp7ImJ1Y2tldCI6InRydWVfYml0cmF0ZSIsInZlcnNpb24iOm51bGx9LCJ0ZndfbGVnYWN5X3RpbWVsaW5lX3N1bnNldCI6eyJidWNrZXQiOnRydWUsInZlcnNpb24iOm51bGx9LCJ0ZndfdHdlZXRfZWRpdF9mcm9udGVuZCI6eyJidWNrZXQiOiJvbiIsInZlcnNpb24iOm51bGx9fQ%3D%3D&frame=false&hideCard=false&hideThread=false&id=1986673518529147131&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=b5526c5a7b4db488710934b272c751ac1545dd96&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px">&nbsp;&nbsp;&nbsp;&nbsp;</iframe></div></div>The official event took place on Wednesday at a naval port in China&#39;s southern island province of Hainan. Electromagnetic catapult system&quot;After the ceremony, Xi Jinping boarded the Fujian ... and learned about the development of the aircraft carrier system combat capabilities and the construction and application of the electromagnetic catapult system,&quot; state-run Xinhua said. In September, the Chinese Navy shared on X that &quot;three types of carrier-based aircraft, including J-15T, J-35 and KJ-600, completed catapult launch and landing training on board the PLANS Fujian for the first time this year, demonstrating the Fujian&rsquo;s capability of electromagnetic catapult and recovery operations.&quot;<div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 624px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1970112847960256875&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=85b83dfe7e6fa1fcab312a8b10f5f43465c90f76&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px">&nbsp;</iframe></div></div>Footage of the proceedings released by state broadcaster CCTV showed Xi and other top officials from the country&#39;s ruling Communist Party in attendance at the port, AFP reported. Engaged in a naval rivalry with Washington in the fraught maritime region, China lags behind the United States in overall military prowess, analysts say. But Beijing has directed billions of dollars into its military in recent years, a trend that has unnerved some governments in East Asia despite China insisting its aims are peaceful. &lsquo;More advanced take-off systems&rsquo;The navy, in particular, has seen a massive expansion as leaders seek to expand the country&#39;s reach in the Pacific and challenge a US-led alliance. According to a French media report, equipped with 11 aircraft carriers, the US Navy remains the world&#39;s leading fleet in terms of tonnage.&nbsp; After conducting sea trials in recent months, the Fujian now joins China&#39;s two other carriers in active operation -- the Liaoning and the Shandong, AFP reported. Analysts have said that the latest carrier boasts more advanced take-off systems, allowing the Chinese air force to deploy jets carrying larger payloads and more fuel.

Asia

After conducting sea trials in recent months, the Fujian now joins China's two other carriers in active operation -- the Liaoning and the Shandong; analysts have said that the latest carrier boasts more advanced take-off systems.

China's third aircraft carrier enters service

GYEONGJU: Canadian Premier Mark Carney on Saturday called talks with China&#39;s leader Xi Jinping a &quot;turning point&quot; in relations, adding he had raised tricky topics like foreign interference with Beijing. Canada&#39;s relations with China have been among the worst of any Western nation, but both are at the sharp end of Donald Trump&#39;s tariff onslaught, even after Xi and the US leader&#39;s deal Thursday to dial back tensions. China and Canada on Friday held their first formal talks between their leaders since 2017 on Friday. &lsquo;Unlocked a path forward&rsquo;&quot;We have now unlocked a path forward to address current issues,&quot; Carney told journalists in the South Korean city of Gyeongju, referring to China.&nbsp;&quot;Our overall discussion was constructive,&quot; he added. Carney said Saturday he had accepted an invitation from Xi to visit &quot;in the new year&quot;. &quot;I directed our ministers and officials to work together to find solutions to current challenges and to identify areas for cooperation and growth,&quot; he said. Carney apologizes to Trump&nbsp;The US president last Saturday said he was hiking tariffs on Canadian goods by an additional 10% and terminated all trade talks. This followed what Trump called a &quot;fake&quot; anti-tariff ad campaign that featured the late ex-president Ronald Reagan. Carney said Saturday he had apologized to Trump for that ad. &quot;I did apologize to the president. The president was offended,&quot; he said.

Americas

Carney said Saturday he had accepted an invitation from Xi to visit "in the new year"; says ‘we have now unlocked a path forward to address current issues’, adding ‘our overall discussion was constructive.’

Canada PM says Xi talks 'turning point', apologizes to Trump

WASHINGTON: US President Donald Trump embarks on a major trip to Asia this week with all eyes on a meeting with Chinese leader Xi Jinping that has huge implications for the global economy. Trump said Wednesday he was making a &quot;big trip&quot; to Malaysia, Japan and South Korea, his first visit to the region since he returned to the White House in a blaze of tariffs and geopolitical brinkmanship. The highlight will be his talks with Xi in South Korea, which Trump&#39;s spokeswoman confirmed would take place on October 30 on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit. Trump had previously threatened to scrap the meeting amid a flare-up in the trade war between Washington and Beijing, but he said Wednesday he now hoped for a &quot;deal on everything.&quot; The host nations are meanwhile set to roll out the red carpet to ensure they stay on the right side of the unpredictable 79-year-old, and win the best deals they can on tariffs and security assistance. Malaysia and Japan&nbsp;Trump will leave Washington on Friday and arrive on Sunday in Malaysia for the Association of Southeast Asian Nations (ASEAN) summit -- a meeting Trump skipped several times in his first term. He is set to ink a trade deal with Malaysia -- but more importantly to oversee the signing of a peace accord between Thailand and Cambodia, as he continues his quest for a Nobel Peace Prize. &quot;President Trump is keen to see the more positive results of the peace negotiations between Thailand and Cambodia,&quot; Malaysian Prime Minister Anwar Ibrahim said. The US leader may also meet Brazilian President Luiz Inacio Lula da Silva on the sidelines of the summit to improve ties after months of bad blood, officials from both countries told AFP. Trump&#39;s next stop will be Tokyo on Monday and he will meet conservative Sanae Takaichi, named this week as Japan&#39;s first woman prime minister, on Tuesday. Japan has escaped the worst of the tariffs Trump slapped on countries around the world to end what he calls unfair trade balances that are &quot;ripping off the United States.&quot; Trump and Xi in South Korea&nbsp;The climax of the trip is expected to be South Korea, with Trump due to land in the southern port city of Busan on Wednesday, White House Press Secretary Karoline Leavitt said. Trump will then meet South Korean President Lee Jae Myung, address an APEC lunch with business leaders and meet US tech bosses for dinner, the White House said, on the sidelines of the APEC summit in the city of Gyeongju. The next day Trump will meet Xi for the first time since his return to office. Global markets will be watching closely to see if the two men can halt the trade war between the world&#39;s two biggest economies, especially after a recent row over Beijing&#39;s rare earth curbs. Trump initially threatened to cancel the meeting and imposed fresh tariffs, before saying he would go ahead after all. He said on Wednesday that he hoped to make a deal with Xi on &quot;everything&quot; and also hoped the Chinese leader could have a &quot;big influence&quot; on getting Russia&#39;s Vladimir Putin to end the Ukraine war. Analysts warned not to expect any breakthroughs. &quot;The meeting will be a data point along an existing continuum rather than an inflection point in the relationship,&quot; said Ryan Hass, a senior fellow at Brookings Institution. South Korea, seeking its own trade deal, is reportedly considering the rare step of awarding Trump the Grand Order of Mugunghwa -- the country&#39;s highest decoration -- during his visit. North Korea will also be on the agenda. The country fired multiple ballistic missiles on Wednesday, just days before Trump was due to visit. South Korea has halted tours in parts of the Demilitarized Zone (DMZ) separating the two Koreas, officials said Thursday, fueling speculation of a new meeting between Trump and North Korean leader Kim Jong Un. Trump has said he hopes to meet Kim again following several meetings during the US president&#39;s first term, but there has been no confirmation of reports that the White House was looking at a new meeting this time.

Chinese President Xi Jinping (R) and US President Donald Trump

US President Donald Trump begins an Asia trip to Malaysia, Japan, and South Korea, highlighted by a high-stakes meeting with China’s Xi Jinping aimed at easing trade tensions and addressing global economic and security issues.

Trump’s Asia tour builds toward high-stakes meeting with Xi 

HONG KONG: Equity markets rose Monday after conciliatory comments from Donald Trump at the weekend eased worries about China-US trade tensions, while Tokyo stocks surged to a record on news of a deal to end political turmoil in Japan. Investors also took heart from data showing China&#39;s economy grew on par with expectations in the third quarter, with the gains building on the positive mood from Wall Street, where all three main indexes bounced back from Thursday&#39;s losses. Sentiment took a hit last week from a fresh flare-up in the trade standoff between Washington and Beijing when the US president threatened to hammer China with 100% tariffs in response to its latest controls on rare earth exports. That led to another round of tit-for-tat measures and Trump warning that a meeting with Chinese counterpart Xi Jinping planned for next week might not go ahead.&nbsp;&lsquo;Constructive exchanges&rsquo;However, tempers appeared to have cooled at the weekend, with the two sides agreeing Saturday to hold more trade talks. Chinese state media said Vice Premier He Lifeng and US Treasury Secretary Scott Bessent had held &quot;candid, in-depth and constructive exchanges&quot; during a call, and that both sides agreed to hold a new round of negotiations &quot;as soon as possible&quot;. Hours before the call, Fox News released excerpts of an interview with Trump in which he said he would meet Xi at the APEC summit after all, and added that the 100% tariff was &quot;not sustainable&quot;. Markets across Asia rose on the softer tone, with Hong Kong up more than two percent and Shanghai also well up as data showed China&#39;s economy grew in line with expectations in the third quarter, though at its slowest pace in a year. &lsquo;Catalyzed by Trump&#39;s remark&rsquo;The data was released just hours before the start of a closely watched four-day meeting in Beijing with top Communist Party officials focused on long-term economic planning. Sydney, Seoul, Wellington, Taipei, Mumbai, Bangkok and Manila also rallied with London, Paris and Frankfurt. &quot;Catalyzed by Trump&#39;s remark... markets appear priced for a positive or at least less-bad outcome,&quot; said Chris Weston at Pepperstone. &quot;The market&#39;s base case now seems to be that China will offer concessions on its rare-earth export controls, paving the way for the US to extend the current 30 percent &#39;tariff truce&#39; by another 90 days beyond its 10 November deadline.&quot; Tokyo led gains&nbsp;Tokyo led the gains, surging more than three percent to a new peak, as Japan&#39;s ruling party said it was set to sign a new coalition deal on Monday, paving the way for Sanae Takaichi to become the country&#39;s first woman prime minister. Stocks were sent into a spin last week when her bid to become premier -- having won her party&#39;s leadership earlier in the month -- was derailed after its alliance partner withdrew its support. Traders also took heart from a bounce back for US regional bank stocks Friday, which had been pummeled Thursday following disclosures from two mid-sized players of expected losses tied to problem loans. The recovery Friday in those banks -- Salt Lake City-based Zions Bancorp and Phoenix-based Western Alliance Bancorporation -- and other lenders suggested investors were less fearful of systemic problems.&nbsp;Key figures at around 0715 GMT&nbsp;<ul class="decimal_type"><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">Tokyo - Nikkei 225: UP 3.4 percent at 49,185.50 (close)</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">Hong Kong - Hang Seng Index: UP 2.3 percent at 25,838.94</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">Shanghai - Composite: UP 0.6 percent at 3,863.89 (close)</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">London - FTSE 100: UP 0.3 percent at 9,382.39</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">Euro/dollar: DOWN at $1.1664 from $1.1670 on Friday</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">Pound/dollar: DOWN at $1.3423 from $1.3433</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">Dollar/yen: UP at 150.59 yen from 150.50 yen</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">Euro/pound: DOWN at 86.87 percent from 86.88 pence</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">West Texas Intermediate: DOWN 0.9 percent at $57.01 per barrel</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">Brent North Sea Crude: DOWN 0.9 percent at $60.77 per barrel</li><li style="font-family: Arial, Helvetica, sans-serif; font-size: 18px; line-height: 2;">New York - Dow: UP 0.5 percent at 46,190.61 (close)</li></ul>

Business

Investors also took heart from data showing China's economy grew on par with expectations in third quarter, with gains building on positive mood from Wall Street, where all three main indexes bounced back from Thursday's losses.

Stock markets bounce back as China-US trade fears ease

BEIJING: China on Sunday accused the US National Security Agency (NSA) of carrying out cyberattacks on its national time center, saying any damage to related facilities could have disrupted network communications, financial systems, and power supply. The Ministry of State Security alleged that the US agency had exploited vulnerabilities in the messaging services of a foreign mobile phone brand to steal sensitive information from devices of the National Time Service Center&#39;s staff in 2022.&nbsp; &lsquo;Special cyberattack weapons&rsquo;It did not specify the brand. The US agency also used 42 types of &ldquo;special cyberattack weapons&rdquo; to target the center&#39;s multiple internal network systems and attempted to infiltrate a key timing system between 2023 and 2024, it said in a post on WeChat, a Chinese social media platform. The ministry said it had evidence but did not provide it in the post.&nbsp;What is the time center?It said the time center is responsible for generating and distributing China&rsquo;s standard time, in addition to providing timing services to industries such as communications, finance, power, transport, and defense.&nbsp; The ministry added that it had provided guidance to the center to eliminate the risks. &ldquo;The US is accusing others of what it does itself, repeatedly hyping up claims about Chinese cyber threats,&rdquo; the post said. Western governments in recent years have alleged hackers linked to the Chinese government have targeted officials, journalists, corporations, and others.&nbsp;&nbsp;Ongoing tensions&nbsp;The ministry&#39;s statement could fuel tensions between Washington and Beijing, on top of trade, technology, and other issues. The US Embassy did not address the Chinese allegation in an emailed response. The response focused on China&#39;s cyberattacks, calling them the most active and persistent threat to the US government and companies.

Says US agency, the NSA used 42 types of “special cyberattack weapons” to target the center's multiple internal network systems and attempted to infiltrate a key timing system between 2023 and 2024.

China accuses US of cyberattack on national time center

HONG KONG: One of China&rsquo;s most important meetings begins Monday, as leader Xi Jinping and other ruling Communist Party elites gather in Beijing to map out the goals for the next five years. The closed-door gathering &mdash; known as the fourth plenum &mdash; is expected to last four days and will discuss and put the final touches on China&rsquo;s next five-year plan, a blueprint for 2026-2030. The leaders are meeting at a time of heightened trade tensions between Washington and Beijing and just ahead of a possible meeting between Xi and US President Donald Trump during a regional summit later this month. Here is what to know about the meeting: What the fourth plenum is and why it mattersThe fourth plenum refers to the fourth plenary session, out of typically a total of seven sessions during the five-year term of the Chinese Communist Party&rsquo;s central committee. Xi and about 370 members of the central committee are expected to attend. The gathering also may coincide with personnel changes. Since it&#39;s held behind closed doors, details may come days or weeks later. Such gatherings are meant to help unite officials and the public behind the party&#39;s agenda. The full five-year plan for 2026-2030 and specifics will likely not be released until the annual session of the National People&#39;s Congress is held in March. But there is little reason to expect a radical shift away from the format and messaging style of previous five-year plans, Lynn Song, chief economist for Greater China at ING Bank, said in an interview. What to expect in China&rsquo;s next &#39;five-year plan&#39;The world&rsquo;s second-largest economy is forecast to expand by 4.8% this year, according to the World Bank, a figure close to China&rsquo;s official target of about 5% growth. China faces challenges from the trade war that has intensified since Trump took office, but also from chronic domestic problems that are dragging on growth. Longstanding efforts to boost consumer spending and investment by businesses and to curb excess capacity in many industries top the list of economic priorities. But Xi also will likely highlight China&#39;s push to become the global leader in many technologies, such as artificial intelligence. China&rsquo;s pursuit of technological &ldquo;self-sufficiency,&rdquo; weaning its industries of their reliance on advanced computer chips from the US, has sped up as Trump tightens American export control measures and raises tariffs. That could result in more spending on advanced technology, said Ning Zhang, a senior China economist at UBS. One key question is whether there will be any meaningful shift in the leadership&rsquo;s approach to boosting consumption, said Leah Fahy, a China economist at Capital Economics. The government has adopted incremental policy moves &mdash; such as increased government subsidies for childcare, consumer loans, and trade-in programs for appliances and electric vehicles. Boosting consumption, which would drive borrowing and demand, is &ldquo;much more important than before&rdquo; but consumer confidence has been undermined by the bursting of China&#39;s property bubble several years ago, Zhang explained. Economists say bolder moves are needed to make a significant difference. Price wars in the auto industry are an example of the risks of the ferocious competition that results from overcapacity that afflicts many Chinese industries. China&#39;s exports &mdash; including to Southeast Asia and Africa &mdash; have surged as companies seek markets beyond its borders, adding to friction with the United States and other trading partners. China&#39;s chief challenges in the next five yearsSince the massive disruptions of the COVID-19 pandemic, China has struggled to reignite faster economic growth. Its property sector downturn has complicated that effort, causing massive layoffs and leading families to cut back on spending as house prices have fallen. Wendy Leutert, a professor of economics and trade at Indiana University, noted in a recent report that China is still stinting on spending on areas that might help to balance the economy and encourage more consumer spending, such as health care, education and child and elder care. &ldquo;Overall, China&rsquo;s leaders still appear willing to accept economic costs, including resource misallocation and failures, in order to pursue self-sufficiency and technological leadership in strategically important industries and strengthen overall national power,&rdquo; she wrote. While it faces increasing friction with the US and other trading partners, China is also running up against demographic pressures, as its population of 1.4 billion begins to shrink and age more rapidly. The unemployment rate for young workers aged 16-24 is nearly 19%, according to official data, impinging on their potential contributions to the economy. The Chinese leadership has set a goal of doubling the size of China&rsquo;s economy in 2020 by 2035, and like any other government, &ldquo;still cares (about) growth and is still trying to get richer,&rdquo; said Zhang of UBS. He estimates that keeping the economy growing at a robust 4% to 5% pace in the next decade will likely be &ldquo;challenging.&rdquo; But it&#39;s imperative to show it is striving for such ambitious goals, to demonstrate the ruling party&#39;s capacity to keep delivering a better quality of life &mdash; its chief claim to its legitimacy. &quot;For China&rsquo;s leadership, what do they care about? Stability, legitimacy, and also ongoing support,&quot; he said.

China’s Communist Party, led by Xi Jinping, is holding its fourth plenum to finalize the 2026–2030 five-year plan, focusing on economic growth, technology self-sufficiency, consumer spending, and stability amid trade tensions and domestic challenges.

China's ruling Communist Party meets to map out plans for the next 5 years

BEIJING: China and the United States agreed Saturday to conduct another round of trade negotiations in the coming week, as the world&#39;s two biggest economies seek to avoid another damaging tit-for-tat tariff battle. Beijing last week announced sweeping controls on the critical rare earths industry, prompting US President Donald Trump to threaten 100 percent tariffs on imports from China in retaliation. Trump had also threatened to cancel his expected meeting with Chinese counterpart Xi Jinping in South Korea later this month on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. In the latest indication of efforts to resolve their dispute, Chinese state media reported that Vice Premier He Lifeng and US Treasury Secretary Scott Bessent had &quot;candid, in-depth and constructive exchanges&quot; during a Saturday morning call, and that both sides agreed to hold a new round of trade talks &quot;as soon as possible&quot;. On social media, Bessent described the discussions as &quot;frank and detailed&quot;, and said they would meet &quot;in-person next week to continue our discussions&quot;. Bessent had previously accused China of seeking to harm the rest of the world by tightening restrictions rare earths, which are critical to everything from smartphones to guided missiles. US Trade Representative Jamieson Greer also participated in the call, according to the report by Chinese state news agency Xinhua. Hours before the call, Fox News released excerpts of an interview with Trump in which he said that he would meet Xi at the APEC summit after all. Coordinated response&nbsp;The high-level video call came as Washington worked to rally Group of Seven finance ministers in response to the latest Chinese export controls. For now, the G7 ministers have agreed to coordinate a short-term response and diversify suppliers, the EU&#39;s economy commissioner Valdis Dombrovskis told reporters in Washington. Speaking after the grouping met this week, Dombrovskis noted the vast majority of rare earth supplies come from China, meaning that diversification could take years. &quot;We agreed, both bilaterally with the US and at the G7 level, to coordinate our approach,&quot; he said on the sidelines of the International Monetary Fund and World Bank&#39;s fall meetings. Countries would also exchange information on their contacts with Chinese counterparts as they work out short-term solutions, he added. German Finance Minister Lars Klingbeil told journalists he hopes that Trump and Xi&#39;s meeting can help to resolve much of the US-China trade conflict. &quot;We have made it clear within the G7 that we do not agree with China&#39;s approach,&quot; he added, referring to the group of Britain, Canada, France, Germany, Italy, Japan and the United States. International Monetary Fund chief Kristalina Georgieva also expressed hope Friday for an agreement between the countries to cool tensions. The US-China trade war reignited this year as Trump promised sweeping tariffs on imports soon after returning to office. At one point, US-China tariffs escalated to triple-digit levels, effectively halting some trade as businesses waited for a resolution. The two countries have since lowered their respective levies, but their truce has remained shaky.

China and the United States agreed to hold new trade talks after tensions flared over rare earth export controls and tariff threats. Both sides signaled willingness to negotiate as G7 nations coordinated responses.

China and US agree to fresh trade talks

Reuters

Euro zone government bond yields fell to multi-month lows on Friday as US-China trade tensions and signs of credit stress in the US banking system weighed on risk sentiment, driving investors into safe-haven assets. China on Thursday accused the US of stoking panic over its rare earth controls and rejected a White House call to roll back the curbs. US bank stocks, including Zions Bancorporation, Jefferies and Western Alliance, fell sharply on Thursday as investors grew uneasy about risk in the sector, which has been shaken by exposure to two auto bankruptcies. Germany&rsquo;s 10-year Bund yields, the euro zone&rsquo;s benchmark, were down 4 basis points to 2.53%, after hitting 2.524%, their lowest since June 25. &ldquo;Risk sentiment remains fragile, with US regional banks leading the move lower,&rdquo; said Mohit Kumar, an economist at Jefferies. &ldquo;Investors are long in risk assets, and there are enough reasons to be concerned short term &mdash; valuations, AI bubble, politics. This makes investors sensitive to any negative headlines,&rdquo; he added. Money markets raised bets on European Central Bank rate cuts. They priced in about an 80% chance of a 25-basis-point cut by July EURESTECBM7X8=ICAP, up from around 65% the day before. The key rate is seen at 1.78% in December 2026 EURESTECBM10X11=ICAP from the current 2%. Germany&rsquo;s two-year yields DE2YT=RR, more sensitive to ECB rate expectations, dropped 5 bps to 1.87%, after hitting 1.869%, their lowest since July 24. The yield gap between safe-haven Bunds and 10-year French government bonds DE10FR10=RR &mdash; a market gauge of the risk premium investors demand to hold French debt &mdash; widened 4 bps to 78.50. It hit 87.96 bps earlier this month, the highest since Jan. 13, on concerns about the French fiscal outlook, but fell below 75 bps after French Prime Minister Sebastien Lecornu survived two no-confidence votes in parliament on Thursday.

Futures-options traders work on the floor at the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York City, U.S., October 2, 2025. REUTERS/Brendan McDermid

Banking

Euro zone government bond yields fell to multi-month lows on Friday as US-China trade tensions and signs of credit stress in the US banking system weighed on risk sentiment, driving investors into safe-haven assets.

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