Does Volvo's Chinese Ownership Threaten US National Security?
Is Volvo Car AB a threat to US national security? Washington appears to think it might be, and the consequences could be profound for Chinese majority-owner Zhejiang Geely Holding Group Co., as well as car buyers everywhere.
A brand renowned for safety (and lauded by US conservatives for its family values), could in theory be prohibited from selling cars stateside from 2027 due to new regulations designed to block China from spying on US citizens or carrying out a cyberattack. Modern cars are highly sophisticated computers on wheels, creating vulnerabilities that hackers can exploit.
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Newsweek
22 minutes ago
- Newsweek
China Challenges US Sea Power With Two Aircraft Carriers in West Pacific
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. For the first time ever, two Chinese aircraft carriers operated simultaneously in the western Pacific beyond a strategic island defense line meant to keep China's naval forces in check. Chinese naval activities in relevant waters are "fully consistent with international law and international practices," the Chinese Foreign Ministry said at press conference on Monday. Newsweek has also reached out to the Chinese Defense Ministry for comment by email. Why It Matters The Chinese navy is the world's largest by hull count, with more than 370 vessels, including two aircraft carriers—CNS Liaoning and CNS Shandong—in active service. This growing fleet enables China to expand its military reach and presence in the Pacific Ocean. Under a containment strategy, the United States has established three island chains across the western and central Pacific by using its own territories, as well as those of its allies and partners, in an effort to restrict China's naval access to the broader Pacific during wartime. On Saturday, Japan—a U.S. treaty ally—announced that the Liaoning had become China's first aircraft carrier to be spotted sailing in waters east of the Second Island Chain, which links Japan to New Guinea, north of Australia, via Guam—America's westernmost territory. What To Know A second Chinese naval task group—consisting of the Shandong and four other vessels—was tracked operating in the Philippine Sea on Saturday, approximately 340 miles southeast of Miyako Island in Japan's southwestern waters, the Japanese Defense Ministry announced. The Chinese vessels deployed alongside the aircraft carrier—which has served in China's navy since 2019—included one Type 055 destroyer, two Type 054A frigates, and one Type 901 fast combat support ship, according to hull numbers provided by Japan's military. It remains unclear when and where the Shandong and its task group breached the First Island Chain—formed by Japan, Taiwan and the Philippines, west of the Philippine Sea. They may have passed through the Luzon Strait, which lies between Taiwan and the Philippines. The Liaoning, which has been tracked underway since late May, was first spotted operating in the East China Sea before transiting the Miyako Strait—a key waterway in the First Island Chain near the Japanese island of Miyako—toward the Philippine Sea. The Shandong-led naval task group was later tracked moving northeast, reaching north of Okinotorishima on Monday. The island, located over 1,000 miles south of Japan's capital, Tokyo, is the country's southernmost territory. The Shandong conducted flight operations with its fighter jets and helicopters within Japan's 230-mile-wide exclusive economic zone (EEZ) around the island, according to a Japanese Defense Ministry map. The carrier was accompanied by a Type 052D destroyer and a Type 054A frigate. All countries have the right to conduct freedom of navigation and overflight within an EEZ, a maritime area beyond and adjacent to a nation's territorial sea—which extends up to 13.8 miles from the coastline—according to the United Nations Convention on the Law of the Sea. The dual aircraft carrier deployment is just another example of the Chinese navy expanding its reach in international waters, Tom Shugart, a former U.S. Navy submariner and adjunct senior fellow at the Center for a New American Security, told Newsweek in an email. "In the event of a conflict, a PLA Navy that is the U.S. Navy's equal is not one that fights in the Western Pacific—it's one that challenges for control of the Central Pacific," Shugart said, referring to the official name of the Chinese navy, the People's Liberation Army Navy. Chinese aircraft carriers CNS Liaoning, right, and CNS Shandong carry out a dual carrier formation exercise for the first time in the South China Sea in late October 2024. Chinese aircraft carriers CNS Liaoning, right, and CNS Shandong carry out a dual carrier formation exercise for the first time in the South China Sea in late October 2024. Chen Mengxi/Xinhua via AP "I think the [dual aircraft carrier deployment] is interesting, but also unsurprising in the larger context of evolving Chinese blue water operations," Australia-based naval analyst Alex Luck said in an email to Newsweek, referring to a navy capable of operating globally. "I would expect [the Chinese navy] to schedule repeats and increasing complexity for such future activities," Luck said—especially once CNS Fujian, China's third aircraft carrier, which is yet to be commissioned, becomes operational with a more capable carrier-based aviation unit. What People Are Saying Tom Shugart, a former U.S. Navy submariner, told Newsweek: "China is now, by far, the world's dominant maritime power by every measure other than sheer naval tonnage (U.S. Navy ships are, on average, still larger), and its maritime interests are global in nature. That we also see global Chinese naval power should come as no surprise." Australia-based naval analyst Alex Luck told Newsweek: "My personal view is that China does consider their carrier force as an important element in adding strategic space across the Pacific, aimed at making American deployments near the Chinese main more challenging." What Happens Next The Chinese navy may conduct its second dual aircraft carrier operation as the Liaoning and the Shandong operate around the Second Island Chain, a Newsweek map shows. The two aircraft carriers conducted their first joint operation last October in the South China Sea.
CNBC
an hour ago
- CNBC
Gold falls as traders watch US-China trade talks in London
Gold declined on Tuesday as market participants awaited further developments from ongoing U.S.-China trade talks in London, with negotiations extending into a second day. Spot gold fell 0.5% to $3,311.16 an ounce, as of 0125 GMT. U.S. gold futures also fell 0.7% to $3,330.90. High-level trade talks between the U.S. and Chinese officials are extending into a second day, with discussions encompassing issues ranging from tariffs to rare earth restrictions. "With these key the U.S.-China trade talks still in the works, gold is trading reservedly until we see what if any progress is made between the two global superpowers," said Tim Waterer, chief market analyst at KCM Trade. U.S. President Donald Trump said his administration was "doing well" in the negotiations and noted positive reports from the talks. Last month, both sides agreed to a temporary pause tariffs, offering some relief to financial markets. "If traders come away from the U.S.-China talks this week thinking that the two nations remain on track to achieve a broader trade deal, safe-haven demand for assets such as gold could ease." Data from China showed export growth slowed to a three-month low in May as U.S. tariffs impacted shipments, while factory-gate deflation worsened to its deepest level in two years. Meanwhile, investors are now awaiting U.S. inflation data on Wednesday for more cues on the Federal Reserve's monetary policy path. "If CPI has ticked marginally higher that would be an expected result, but if it jumps then that could raise some alarm bells for investors, and any resulting flight to safety could help the gold price," Waterer said. Gold gains appeal during uncertain geopolitical and economic times and tends to do well when interest rates are low. Elsewhere, spot silver was down 0.6% to $36.51 per ounce, platinum dropped 0.8% to $1,210.46, while palladium fell 0.2% to $1,071.75.
The Hill
an hour ago
- The Hill
Asian shares are mixed as investors keep an eye on China-US trade talks
Asian shares were mixed on Tuesday as investors kept a wary eye on China-U.S. trade talks that could have a huge impact on the global economy. U.S. futures were flat and oil prices rose. A second day of talks was planned after U.S. and Chinese officials met in London on Monday for negotiations over various issues. The hope is that they can eventually reach a deal to reduce painfully high tariffs against each other. Most of the tariff hikes imposed since U.S. President Donald Trump escalated his trade war are paused to allow trade in everything from tiny tech gadgets to enormous machinery to continue. In Asian trading, Tokyo's Nikkei 225 gained 0.2% to 38,169.76, giving up early gains, while the Kospi in South Korea rose 0.3% to 2,866.66. Hong Kong's Hang Seng reversed its early advance, falling 0.4% to 24,083.58. The Shanghai Composite index dropped 0.6% to 3,379.75. In Taiwan, the Taiex surged 2.1%. Australia's S&P/ASX 200 advanced 0.7% to 8,578.50. India's Sensex was nearly unchanged. On Monday, the S&P 500 edged up just 0.1% and at 6,005.88 was within 2.3% of its record set in February. The Dow Jones Industrial Average slipped by 1 point, which is well below 0.1%, to 42,761.76. The Nasdaq composite added 0.3% to 19,591.24. Hopes that President Donald Trump will lower his tariffs after reaching trade deals with countries around the world have helped the S&P 500 has rally back after it dropped roughly 20% from its record two months ago. It's back above where it was when Trump shocked financial markets in April with his wide-ranging tariff announcement on what he called 'Liberation Day.' Some of the market's biggest moves came from the announcement of big buyout deals. Qualcomm rallied 4.1% after saying it agreed to buy Alphawave Semi in a deal valued at $2.4 billion. IonQ, meanwhile, rose 2.7% after the quantum computing and networking company said it agreed to purchase Oxford Ionics for nearly $1.08 billion. On the losing side of Wall Street was Warner Bros. Discovery, which flipped from a big early gain to a loss of 3% after saying it would split into two companies. One will get Warner Bros. Television, HBO Max and other studio brands, while the other will hold onto CNN, TNT Sports and other entertainment, sports and news television brands around the world, along with some digital products. Tesla recovered some of its sharp, recent drop. The electric vehicle company tumbled last week as Elon Musk's relationship with Trump broke apart, and it rose 4.6% Monday after flipping between gains and losses earlier in the day. The frayed relationship could end up damaging Musk's other companies that get contracts from the U.S. government, such as SpaceX. Rocket Lab, a space company that could pick up business at SpaceX's expense, rose 2.5%. In the bond market, the yield on the 10-year Treasury eased to 4.48% from 4.51% late Friday. It fell after a survey by the Federal Reserve Bank of New York found that consumers' expectations for coming inflation eased a bit in May. Economists expect a report coming on Wednesday to show inflation across the country accelerated last month to 2.5% from 2.3%. The Fed has been keeping its main interest rate steady as it waits to see how much Trump's tariffs will raise inflation and how much they will hurt the economy. A persistent increase in expectations for inflation among U.S. households could drive behavior that creates a vicious cycle that only worsens inflation. In other dealings early Tuesday, U.S. benchmark crude oil picked up 19 cents to $65.47 per barrel. Brent crude, the international standard, was up 22 cents at $67.26. The dollar slipped to 144.52 Japanese yen from 144.61 yen. The euro slipped to $1.1409 from $1.1421.
