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Diving into DeepSeek: inside the 7 February Guardian Weekly

Diving into DeepSeek: inside the 7 February Guardian Weekly

The Guardian05-02-2025

It's been a tale of technology and tariffs this week as a Chinese-developed chatbot delivered the first shock to stock markets after appearing to have stolen a march on US tech supremacy. For our big story, technology editors Robert Booth and Dan Milmo dived into the implications of DeepSeek, a cheaper and less energy intensive AI tool than Silicon Valley rivals such as OpenAI's ChatGPT.
Within days of DeepSeek's stealth launch, it had raced up the download charts but equally as fast, its limitations when questioned on tricky subjects such as contentious Chinese history were pointed out by testers. With the help of typical Turing test questions we, however, report that all chatbots on the market have their limitations. And, as commentator Kenan Malik writes, the real shock of the new pretender owes more to economics than technical developments.
Meanwhile, barely recovered from their tech tremors, the markets reeled again as Donald Trump unveiled his promised tariff tactics. While Mexico and Canada won a month's reprieve after agreeing to shore up their borders against Trump's claims of migrants and illegal drugs coming into the US, China stood up to the White House by imposing its own tariffs on US imports. In a week when the news, seemingly, never had a moment to draw breath, this edition of Guardian Weekly is a chance to reflect on these two globally significant events.
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Spotlight | My home was crushed and buried Gaza-based reporter Malek A Tantesh records her family's arduous walk back to Beit Lahia in northern Gaza, the joy of making her way home but the sorrow of the destruction she saw
Environment | Why icebreakers are a hot topic in the Arctic?While Donald Trump seems intent on securing Greenland, our Nordic correspondent Miranda Bryant speaks to local experts, who explain that it will be no mean feat to control shipping routes through the prized Northwest Passage
Feature | My inside storyImprisoned for her part in the UK's Just Stop Oil protests, Louise Lancaster reflects on prison conditions and what she has learned from her time in jail
Opinion | Labour is sacrificing everything to the god of GDPThe government is committing environmental vandalism via chancellor Rachel Reeves' push for growth at all costs and is no better than its Tory predecessors, says George Monbiot
Culture | Bridget Jones is back As the ultimate singleton returns, older and wiser after 25 years, the star and creator of the new movie, Renée Zellweger and Helen Fielding, tell Hollie Richardson why her appeal hasn't dimmed
Wider fears about the direction of artificial intelligence were allayed somewhat by this sweet tale of an 'AI granny' chatbot named Daisy, designed to frustrate telephone fraudsters with a stream of befuddling inquiries about cups of tea, knitting and how computers work. Graham Snowdon, editor
Audio | Alice Weidel: the far-right banker Elon Musk wants as German chancellor
Video | How immigration is used as a political weapon
Gallery | Marianne Faithfull – a life in pictures
We'd love to hear your thoughts on the magazine: for submissions to our letters page, please email weekly.letters@theguardian.com. For anything else, it's editorial.feedback@theguardian.com
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US envoy plans to meet Iran's foreign minister on Sunday, US official says
US envoy plans to meet Iran's foreign minister on Sunday, US official says

Reuters

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  • Reuters

US envoy plans to meet Iran's foreign minister on Sunday, US official says

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Critical minerals give China an edge in trade negotiations
Critical minerals give China an edge in trade negotiations

The Independent

time33 minutes ago

  • The Independent

Critical minerals give China an edge in trade negotiations

China's dominance over critical minerals in global supply chains was a powerful bargaining chip in trade talks between Beijing and Washington that concluded with both sides saying they have a framework to pursue a deal. China has spent decades building the world's main industrial chain for mining and processing such materials, which are used in many industries such as electronics, advanced manufacturing, defense and health care. Mines and factories in and around Ganzhou, a key production hub for rare earths, underpin China's control over the minerals. Many residents grew up collecting rocks containing the valuable minerals from the forested hills surrounding the southern city and today make a living from mining, trading or processing them. Critical minerals as a trade issue Responding to ever higher tariffs and other controls on advanced technology, China told exporters of certain key rare earths and other critical minerals to obtain licenses for every shipment abroad. Approvals can take weeks, leading to supply chain disruptions in the U.S. and other countries. President Donald Trump said Wednesday that China would make it easier for American industry to obtain much-needed needed magnets and rare earth minerals, clearing the way for talks to continue between the world's two biggest economies. In return, Trump said, the U.S. will stop efforts to revoke the visas of Chinese nationals on U.S. college campuses. But details remain scarce. Beijing has not confirmed what the negotiators agreed to, and Chinese President Xi Jinping and Trump himself have yet to sign off on it. The Chinese Commerce Ministry said Saturday it had approved a 'certain number' of export licenses for rare earth products, apparently acknowledging Trump's personal request to Xi during a phone call last week. And on Wednesday, the Ganzhou-based rare-earth conglomerate JL MAG Rare-Earth Co. confirmed it had obtained some export licenses for shipments to destinations including the U.S., Europe and Southeast Asia. Experts say, however, Beijing is unlikely to do away with the permit system enabling it to control access to those valuable resources. The only scenario in which China might deregulate its critical minerals export is if the U.S. first fully removes tariffs imposed on Chinese goods as part of the trade war, said Wang Yiwei, a professor of international affairs at Renmin University, echoing the Chinese government's earlier stance. 'Without that,' he said, 'it will be difficult to blame China for continuing to strengthen its export controls.' An industry built over decades with government support In 1992, Deng Xiaoping, the leader who launched China's ascent as the world's biggest manufacturing power, famously said 'the Middle East has oil, China has rare earths,' signaling a desire to leverage access to the key minerals. Several generations later, Beijing has made its rich reserves of rare earths, a group of 17 minerals that are abundant in the earth's crust but hard, expensive and environmentally polluting to process, a key element of China's economic security. In 2019, during a visit to a rare earth processing plant in Ganzhou, Xi described rare earths as a 'vital strategic resource.' China today has an essential monopoly over 'heavy rare earths,' used for making powerful, heat-resistance magnets used in industries such as defense and electric vehicles. The country also produces around 80% of the world's tungsten, gallium and antimony, and 60% of the world's germanium -– all minerals used in the making of semiconductors, among other advanced technologies. The risks of dependency on Chinese suppliers first came into focus in 2010, when Beijing suspended rare earths exports to Japan due to a territorial dispute. The ban was lifted after about two months, but as a precaution, Japan invested in rare earths processing plants in other countries and began stockpiling the materials. Beijing's across-the-board requirement for export licenses for some critical minerals has put pressure on world electronics manufacturers and automakers. Some auto parts makers in Europe have shut down production lines due to delays in supply deliveries, according to the European Association of Automotive Suppliers. In the U.S., Tesla CEO Elon Musk said a shortage of rare earths is affecting his company's work on humanoid robots. China's critical minerals resources are dwindling In the drab industrial hub of Ganzhou, cradled by the scenic Dayu Mountains, the U.S.-China trade war is still a distant stressor. Miners and small mineral traders interviewed by The Associated Press said they are more concerned about depleting the mountains' once-abundant resources. Zhong, a tungsten factory manager in Ganzhou who would only give his last name, worked his way up to manager from a miner, but he's unsure there is a future for him and others in the industry. 'I find growing difficulties to source tungsten these days,' he said, adding that smaller mines and trading companies are slowly disappearing as the resources are dwindling. Tungsten is an ultra-hard metal used in armor-piercing ammunition, nuclear reactors and semiconductors. At least five tungsten mines have closed in the area in recent years, according to state media. Remaining reserves are deeper and harder to extract and process after decades of exploitation, said Li Shangkui, chairman of the Ganzhou-based Jiangxi Yuean Advanced Materials Co., Ltd. Processing factories in Ganzhou now routinely source materials from other provinces or other countries. Zhong's plant imports some raw materials from places like Africa and Cambodia. Major state-owned and private companies in Ganzhou are also ramping up investments abroad. Tungsten producer Ganzhou Haisheng, for instance, announced last year a $25 million investment in a new tungsten plant in Thailand. Whatever the challenges in procuring raw materials, China likely will seek to maintain its dominance in critical minerals, said Fabian Villalobos, an engineer and critical minerals expert at the RAND think tank. The U.S. lags far behind China on critical minerals Between 2020 and 2023, the U.S. imported at least 70% of the rare earth compounds it used from China, according to the U.S. Geological Survey. It has diversified its sources in recent years, but still mainly relies on China. Since beginning his second term in office, Trump has made improving access to critical minerals a matter of national security. But the U.S. has an incredibly long way to go to catch up with China, experts say. The sole operational U.S. rare earths mine, in Mountain Pass, California, is unable to separate heavy rare earths. It sends its ore to China for processing. The U.S. Defense Department has provided funding to the mine's owner, MP Materials, to build new separation facilities. It will take months to build and still only produce a fraction of what is needed. Friction over the issue has opened the way for government-backed financing that was unavailable before, said Mark Smith, who ran the Mountain Pass mine in the early 2010s and now leads NioCorp. It's seeking about $780 million in financing through the U.S. Export-Import Bank to build a processing facility in Nebraska for critical minerals including rare earths. The Defense Department has committed $439 million to building domestic rare earth supply chains, but building a complete mining and processing industrial chain like China's could take decades. 'There are going to be some real issues here unless we can figure out how to get along with China for a period of time while we're developing our own resources and our mainstream processing,' Smith said. The spotlight on critical minerals also provides opportunities for smaller miners to invest in extracting and processing some critical minerals, such as tungsten, considered 'niche' because they are needed in relatively small amounts in key industries, said Milo McBride, an expert on sustainability and geopolitics at the Carnegie Endowment for International Peace. 'For many of these companies, the business strategy hedges on a scenario where the U.S. and China become more confrontational and where trade relations become more uncomfortable,' McBride said. 'And all of a sudden, what was once an uneconomic project somewhere outside of China starts to make more sense.' ___

India's equity benchmarks poised for flat open
India's equity benchmarks poised for flat open

Reuters

time41 minutes ago

  • Reuters

India's equity benchmarks poised for flat open

June 12 (Reuters) - India's benchmark indexes are poised for a muted open on Thursday as investors weigh the U.S.-China trade deal, which lacks details and leaves the door open for potential tariff flare-ups. The Gift Nifty futures were trading at 25,210.5 as of 7:44 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open near its Wednesday's close of 25,141.4. The Nifty rose for the last six consecutive sessions, trading at eight-month highs, buoyed by the Reserve Bank of India's (RBI) policy support and signs of progress in global trade negotiations. However, sentiment in Asian markets was subdued on the day, mirroring Wall Street's overnight losses amid fresh geopolitical tensions and ambiguity in the U.S.-China deal. U.S. President Donald Trump said a framework on tariff rates had been reached to revive the fragile trade truce with China. While this lifted investor hopes, the lack of specifics kept markets on edge. Trump also announced a partial evacuation of U.S. personnel from the Middle East, calling the region "a dangerous place," and reiterated that the U.S. would not allow Iran to develop nuclear weapons. Meanwhile, domestic institutional investors extended their buying streak to the 17th session on Wednesday, while foreign portfolio investors ended their three-day purchase run. Investors now await the consumer inflation data for May, due post-market. A Reuters poll projects inflation to have eased to a six-year low of 3% on a favorable base and softening food prices, reinforcing the RBI's recent policy easing. ** Zydus Lifesciences ( opens new tab receives an establishment inspection report from the U.S. drug regulator for its Ankleshwar-based API manufacturing facility, indicating the end of the inspection ** Sterlite Technologies ( opens new tab enters agreement with BSNL for a network project valued at 26.31 billion rupees ($307.9 million) ** Tanla Platforms ( opens new tab announces it will consider buyback of equity shares on June 16 ($1 = 85.4420 Indian rupees)

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