China defends Russian oil buys after Trump's tariff threats
China has defended its Russian oil imports as lawful, pushing back against U.S. criticism following Washington's move to impose secondary tariffs on India for similar purchases. The Chinese Foreign Ministry stated it would continue energy cooperation based on national interests. U.S. President Donald Trump suggested that China could also face tariffs, saying 'that may happen,' while Treasury Secretary Scott Bessent noted such action 'could be on the table.'
AP China defended its Russian oil imports as legitimate, responding to US pressure after Washington imposed secondary tariffs on India over its energy purchases from Moscow.'It is legitimate and lawful for China to conduct normal economic, trade and energy cooperation with all countries around the world, including Russia,' the Chinese Foreign Ministry said Friday in a statement to Bloomberg News. 'We will continue to adopt reasonable energy security measures in accordance with our national interests.'US President Donald Trump said earlier this week he could punish China with additional tariffs over its purchases of Russian oil, saying 'that may happen.''Let's see what happens. You're going to see a lot more... You're going to see so much secondary sanctions,' Trump said, responding to a question on why India was being singled out despite other nations, including China, also buying Russian oil.When asked about Trump's comments on Thursday, Treasury Secretary Scott Bessent told Fox News that tariffs on China over oil purchases 'could be on the table at some point.'
China's imports from Russia edged up in July to $10.06 billion — the highest level since March — according to the latest customs data. But overall this year, imports from Russia are still down 7.7% compared to the same period in 2024."China is a much more sensible target for Trump's ire if controlling Russia is really what he wants. Beijing provides far more meaningful support — economic and political — to President Vladimir Putin than New Delhi does," wrote Bloomberg's Mihir Sharma.But China, it appears, is "too big for Trump to bully now." Its negotiators will likely be granted more time than others to come to a deal with the US, and it can continue to support Moscow with an impunity denied to India, he added.US-China relations have stabilised after both countries agreed to pause steep tariffs while talks continue. Trump said this week he was 'very close' to reaching a deal with China to extend the truce, which is set to expire on Tuesday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
28 minutes ago
- First Post
This Week in Explainers: What will be the cost of Trump's 50% tariffs on India?
US President Donald Trump has slapped a 25 per cent tariff on India as punishment for buying Russian oil. This take India's total tariffs to a whopping 50 per cent, among the highest in the world. What would be the fallout of such a move? We examine this and more in our roundup of the big news read more A man reads a newspaper with reports on tariffs after US President Donald Trump announced an additional 25 per cent tariff on Indian goods, alongside a market in New Delhi. Reuters The United States calls India a 'strategic partner'. However, it didn't seem that India and the US were on the same page in the week gone by. US President Donald Trump continued his trade tirade against India this week, slapping a 25 per cent tariff on New Delhi for its purchase of Russian crude oil. This came in addition to the 25 per cent he already levied on India, which came into effect on August 8. Many experts note that Trump risks tanking 25 years of US-India relations. STORY CONTINUES BELOW THIS AD The trade war between India and the US has also resulted in a realignment in geopolitics. India and China, who have been rivals for years, found themselves on the same page with both of them striking a defiant note against America. Moreover, news emerged that PM Modi would be attending the SCO Summit in China's Tianjin, a first for the PM since 2020. This week also saw death and destruction as a result of the Uttarakhand cloudburst. More than 100 people still remain missing after the cloudburst led to flash floods in the Dharali village of the hill state. The disaster has caused unprecedented destruction — roads have been damaged and houses have been destroyed. The Army has also been called in to help with rescue operations, which continue at a slow pace owing to the location of the village. Speaking of the army, big headlines were made when an Indian Army officer roughed up SpiceJet staff at Srinagar airport over a dispute of extra baggage. The airline staff allege that the officer became violent, and beat them up causing them serious injuries. If you want to unpack all of this and the other big headlines from this week, our weekly roundup is here for you. 1) Pushing forward with his earlier threats, US President Donald Trump announced a 25 per cent tariff on India as punishment for buying Russian oil. The penalty is in addition to the 25 per cent tariff India already faces, making it subject to one of the US's highest import tax brackets under Trump, at a total of 50 per cent. STORY CONTINUES BELOW THIS AD In his executive order, Trump explained that Russia's continued military actions in Ukraine constituted a 'national emergency' and it was therefore 'necessary and appropriate' to place heightened tariffs on India, a major consumer of its petroleum products. 'I find that the Government of India is currently directly or indirectly importing Russian Federation oil,' Trump wrote. The move imperils India's trade with the US as well as its economy. While some experts stated that the tariffs could lower the GDP growth by one per cent, others noted that Indian goods especially in the textile, gem and chemical sectors would lose its competitiveness in the US market. If you are wondering just how badly India would be hit by the tariffs, read our detailed analysis here. 2) Trump's reason for levying a whopping 50 per cent tariff on India is its continuous purchase of Russian oil, which the US president deems to be financing Russia's war against Ukraine. STORY CONTINUES BELOW THIS AD But India has defended its move, saying its purchase of Russian crude is 'based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India. The Ministry of External Affairs in a statement also noted that the 'very nations criticising India are themselves indulging in trade with Russia'. But did you know that the purchase of Russian oil doesn't just serve India's interests but the world at large? Here's how. 3) Amid this tariff drama, India remains committed to its ties with Russia. National Security Advisor Ajit Doval was in Moscow this week as part of a pre-planned visit aimed at strengthening ties between the two nations. This visit gained even more prominence as it came amidst threats and the eventual tariff levied by Trump on India for its oil trade with Russia. This has got many asking — why is India keen on its ties with Moscow? Our detailed essay explains the multiple reasons why Delhi-Moscow ties continue despite it all. STORY CONTINUES BELOW THIS AD Trump's 50 per cent tariffs on India seems to be changing the political scenario. New Delhi found an unlikely partner in its defence of purchasing Russian oil – China. File image/Reuters 4) On the issue of tariffs, India has found an unlikely partner — China. As Trump announced that he would levy a tariff on nations trading with Russia on oil, both countries — who import crude — hit back at the US over the move. India said was unjust and unreasonable for America to levy tariffs on it while the US and Europe continued trade ties as well. China was more defiant in its stance. Its deputy permanent representative to the UN said, 'The US itself continues to engage in trade with Russia to this day. Why should it be acceptable for the US to do so, but not for others? Isn't this 'only allowing oneself to set fires while forbidding others from lighting lamps'?' Also, amid this drama, a further thaw in India-China ties came with the news that PM Modi would be visiting the Asian country later this month for the SCO summit. What does this mean for world politics? Should the US be worried? STORY CONTINUES BELOW THIS AD A portion of a road collapsed, near Bhatwari in Uttarkashi district, Uttarakhand. The collapsed road had stalled the ongoing rescue operations at flood-hit Dharali in Uttarkashi. PTI 5) Earlier this week, a cloudburst resulting in flash floods caused unprecedented damage in Uttarakhand's Dharali village, with five people and over 100 yet missing. The devastation has put a spotlight on the hill state and its brush with natural disasters. But why is it that Uttarakhand is vulnerable to natural tragedies? 6) Travelling by air can often be challenging. You have to be mindful of what you are carrying and how much. And this week, an Indian Army officer got into trouble over this very issue — extra baggage. An Army officer, Ritesh Kumar Singh, faces charges and a police investigation after he assaulted staff of SpiceJet at Srinagar airport. The scuffle occurred after he was asked to pay for excess baggage. The Indian Army said it was looking into the incident and would decide on the further course of action based on the outcome of the investigation. 'The Indian Army is committed to upholding the highest standards of discipline and conduct and takes all allegations seriously,' its public relations office said. STORY CONTINUES BELOW THIS AD But what went wrong? Why did the soldier resort to violence in the first place? 7) Talking of the Indian Army, Bollywood is releasing a new movie on the heroics of Major Shaitan Singh, who valiantly led 120 Indians against Chinese troops in the Battle of Rezang La. The movie, titled 120 Bahadur, stars Farhan Akhtar. As you await the release of this movie, here's the true story of the hero. And this marks the end of our weekly wrap. Bookmark this page if you would continue to read more of our reports.
The Hindu
28 minutes ago
- The Hindu
Trump call to oust Intel CEO Tan could sidetrack chipmaker's turnaround
Intel CEO Lip-Bu Tan is already facing an uphill battle in turning around the ailing chipmaker. Now, U.S. President Donald Trump's demand that Tan resign over his ties to Chinese firms will only distract him from that task, two investors and a former senior employee said. Trump said on Thursday that Tan was "highly conflicted" due to his Chinese connections. Reuters reported exclusively in April that Tan had invested in hundreds of Chinese firms, some of which were linked to the Chinese military. Tan may now have to mount an effort to reassure Trump that he remains the right person to revive the storied American chipmaker, pulling his focus away from the cost cuts he's trying to implement. "It is distracting," said Ryuta Makino, analyst at Intel investor Gabelli Funds, which, according to LSEG data, owns more than 200,000 shares in Intel. "I think Trump will make goals for Intel to spend more, and I don't think Intel has the capabilities to spend more, like what Apple and Nvidia are doing." AI chip market leader Nvidia and iPhone-maker Apple have committed hundreds of billions of dollars to expand domestic manufacturing, which, according to Trump, will bring jobs back home. Until recently, Intel had emerged as one of the biggest beneficiaries of the 2022 CHIPS Act, as former CEO Pat Gelsinger laid out plans to build advanced chipmaking factories. Tan, however, has significantly pared back such ambitions, as the company's goal of rivaling Taiwanese chipmaker TSMC's contract manufacturing chops have fallen short. Tan said last month that he would slow construction work on new factories in Ohio and planned to build factories only when he saw demand for Intel's chips, a move that is likely to further strain relations with Trump. The company, its board and Tan were making significant investments aligned with Trump's America First agenda, Intel said in a statement on Thursday, without any mention of Trump's demand. The statement was "bland", said David Wagner, a portfolio manager at Intel shareholder Aptus Capital Advisors, which owns Intel stock through index funds. "Either defend your leader, which will be the beginning of a difficult road ahead, or consider making a change," Wagner said. Having this play out over a few months is not something that Intel can afford, he said. Tan himself released a statement late on Thursday. "The United States has been my home for more than 40 years. I love this country and am profoundly grateful for the opportunities it has given me. I also love this company," he said, adding that the board was "fully supportive of the work we are doing to transform our company." "BUILT ON TRUST" Tan, a chip industry veteran, took the helm at Intel about six months ago, after the board ousted previous boss Pat Gelsinger over years of missteps and burgeoning losses. The company's shares are largely flat this year after losing nearly two-thirds of their value last year. Tan was the CEO of chip-design software maker Cadence Design from 2008 through December 2021. Cadence last month agreed to plead guilty and pay more than $140 million to resolve charges for selling its products to a Chinese military university believed to be involved in simulating nuclear blasts, Reuters reported. The sales to Chinese entities occurred under his leadership. Reuters reported on Wednesday that U.S. Republican Senator Tom Cotton sent a letter to Intel's board chair with questions about Tan's ties to Chinese firms and the criminal case involving Cadence. "There has been a lot of misinformation circulating about my past roles," Tan said in his statement on Thursday. "I have always operated within the highest legal and ethical standards. My reputation has been built on trust," he said. It is not illegal for U.S. citizens to hold stakes in Chinese companies unless those companies have been added to the U.S. Treasury's Chinese Military-Industrial Complex Companies List, which explicitly bans such investments. Reuters in April had found no evidence that Tan at the time was invested directly in any company on that list. But Trump's remarks have now forced the limelight on an issue that could erode investor confidence. "If you add in another layer of government scrutiny, and everybody looking into how the company is doing whatever it's doing ... that just makes it harder," said a former senior executive at Intel, who was familiar with the company's strategy under Gelsinger. The source, who declined to be named, was let go as part of Gelsinger's workforce reduction drive last year. Tan's strategy is to "get rid of all of the non-productive parts of the company and really focus on a key few products," the person said. "If (Tan) leaves, it's going to just prolong whatever Intel has to do and needs to do really quickly."
The Hindu
28 minutes ago
- The Hindu
U.S. licenses Nvidia to export chips to China
The commerce department has started issuing licenses to Nvidia to export its H20 chips to China, a U.S. official told Reuters on Friday, removing a significant hurdle to the AI bellwether's access to a key market. The U.S. last month reversed an April ban on the sale of the H20 chip to China. The company had tailored the microprocessor specially to the Chinese market to comply with the Biden-era AI chip export controls. The curbs will slice $8 billion off sales from its July quarter, the chipmaker has warned. Nvidia CEO Jensen Huang met with Trump on Wednesday, two sources familiar with the matter told Reuters. A spokesperson for Nvidia declined comment. A White House spokesman did not immediately respond to a request for comment. The company said in July it was filing applications with the U.S. government to resume sales to China of the H20 graphics processing unit, and had been assured it would get the licenses soon. It is unclear how many licenses may have been issued, which companies Nvidia is allowed to ship the H20s to, and the value of the shipments allowed. Nvidia disclosed in April that it expected a $5.5 billion charge related to the restrictions. In May, Nvidia said the actual first-quarter charge due to the H20 restrictions was $1 billion less than expected because it was able to reuse some materials. The Financial Times first reported Friday's developments. Nvidia said last month that its products have no "backdoors" that would allow remote access or control after China raised concerns over potential security risks in the H20 chip. BIG MARKET Exports of Nvidia's other advanced AI chips, barring the H20, to China are still restricted. Successive U.S. administrations have curbed exports of advanced chips to China, looking to stymie Beijing's AI and defense development. While this has impacted U.S. firms' ability to fully address booming demand from China, one of the world's largest semiconductor markets, it still remains an important revenue driver for American chipmakers. Huang has said the company's leadership position could slip without sales to China, where developers were being courted by Huawei Technologies with chips produced in China. In May, Nvidia said the H20 had brought in $4.6 billion in sales in the first quarter and that China accounted for 12.5% of overall revenue during the period.
