Huawei founder says chips still lag 'one generation' behind US
Chinese tech giant Huawei's chips still "lag behind the United States by one generation", state media quoted its founder and CEO Ren Zhengfei as saying in a rare interview on Tuesday.
Washington last month unveiled fresh guidelines warning firms that using Chinese-made high-tech AI semiconductors, specifically Huawei's Ascend chips, would put them at risk of violating US export controls.
The Shenzhen-based company has been at the centre of an intense standoff between the economic supergiants after Washington warned its equipment could be used for espionage byBeijing, an allegation Huawei denies.
Speaking to the People's Daily, the official newspaper of the ruling Communist Party, 80-year-old Ren insisted the United States had "exaggerated" Huawei's achievements.
Tougher controls in recent years have prevented US chip giant Nvidia, one of Huawei's rivals, from selling certain AI semiconductors -- widely regarded as the most advanced in the world -- to Chinese firms.
As a result, it is now facing tougher competition from local players in the crucial market, including Huawei.
Nvidia's chief executive Jensen Huang told reporters last month that Chinese companies "are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development".
But Ren said Huawei was "not that great yet", according to the article published on the newspaper's front page Tuesday.
"Many companies in China are making chips, and quite a few are doing well -- Huawei is just one of them," he added.
When asked about "external blockades and suppression" -- a veiled reference to US export restrictions on Beijing -- Ren said he had "never thought about it".
"Don't dwell on the difficulties, just get the job done and move forward step by step," he added.
Sanctions since 2019 have curtailed the firm's access to US-made components and technologies, forcing it to diversify its growth strategy.
China has accused the United States of "bullying" and "abusing export controls to suppress and contain" the country's firms.
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Yahoo
21 minutes ago
- Yahoo
Jetstar Asia closure: Some customers confused, frustrated by poor communication; Air India plane crashes at Ahmedabad airport in India: Singapore live news
The Jetstar Asia closure has left some customers confused and frustrated over conflicting information, or a lack thereof. The Singapore-based airlines, operated by Qantas Group, announced on Wednesday (11 June) morning that it would be ceasing operations from 31 July. They added that Jetstar Asia flights would be operating with a "progressively reduced schedule". For a customer identified as Daniel, he told CNA that he didn't realise the schedule would be "progressively reduced" prior to its closure. An Air India plane crashed at India's Ahmedabad airport, said the police and the airline on Thursday (12 June). There were no details on fatalities from the crash but it was reported that there were more than 200 people on board the flight. Air India said that the flight was headed to Gatwick airport in London and that the plane was "involved in an incident". "At this moment, we are ascertaining the details and will share further updates," they said on X. Read more in our live blog below, including the latest local and international news and updates. An Air India plane crashed at India's Ahmedabad airport, said the police and the airline on Thursday (12 June). There were no details on fatalities from the crash but it was reported that there were more than 200 people on board the flight. Air India said that the flight was headed to Gatwick airport in London and that the plane was "involved in an incident". "At this moment, we are ascertaining the details and will share further updates," they said on X. Flight AI171, operating Ahmedabad-London Gatwick, was involved in an incident today, 12 June 2025. At this moment, we are ascertaining the details and will share further updates at the earliest on and on our X handle ( India… — Air India (@airindia) June 12, 2025 The crash occurred when the aircraft was taking off, television channels reported. Visuals showed debris on fire, with thick black smoke rising up into the sky near the airport. Police officers shared that the plane crashed in a civilian area near the airport. For more on the Air India plane crash, read here. Pop sensation Sabrina Carpenter has surprised fans with the announcement of her seventh studio album, Man's Best Friend, set for release on 29 August, 2025. Carpenter shared the news on Instagram on Wednesday (11 June) along with a photo of her on hands and knees in a black mini dress and black heels. Meanwhile, a man, which is cut out of the photo, is grabbing a her hair. View this post on Instagram A post shared by Sabrina Carpenter (@sabrinacarpenter) Man's Best Friend follows the success of her previous album Short n' Sweet – and the hit song Espresso – which earned her a Grammy for Best Pop Vocal Album earlier this year. The lead single, Manchild, dropped on 5 June, showcasing Carpenter's signature blend of synth-pop and introspective lyrics. For more on Sabrina Carpenter's new album, read here. A Singaporean woman was sentenced to six months' jail in Taiwan for stalking and harassing Golden Melody Award-winning singer Olivia Tsao Ya-wen. Cassandra Low, a woman in her 30s, was identified in a court judgment by the New Taipei District Court. The court found her guilty of endangering Tsao's personal safety, stalking and harassing her, and also publicly insulting the singer. It was reported that Low was a long-time admirer of Tsao and both parties have exchanged personal e-mails and messages over Facebook and Instagram since November 2023. However, the relationship soured after Tsao blocked Low on social media, with the latter issuing threats. In one Facebook post, Low wrote, "I can be very aggressive. The more stubborn she is... don't blame me for whatever I do to her parents." For more on the Olivia Tsao stalking incident, read here. Les Miserables The Arena Spectacular is coming to the Sands Theatre in Singapore in March 2026. The record-breaking concert tour is an expanded version of the Les Miserables The Staged Concert, and features an extraordinary and exciting new design specifically created for larger venues with a cast and orchestra of over 65. UOB cardmembers will have priority pre-sales with a 20 per cent discount. The first starts on Monday (23 June) at 10am, exclusively on Klook. The second will be on Tuesday (24 June) at 10am, and will be available through Marina Bay Sands Ticketing, SISTIC and Klook. Non-UOB cardmembers can sign up for the waitlist now to gain access to the waitlist pre-sale that will start on Tuesday (24 June) 10am. There will be a 15 per cent discount during this pre-sale. The public sale will start on Thursday (26 June) at 12pm, and will be available through Marina Bay Sands Ticketing, SISTIC and Klook. There will be a 10 per cent early bird discount. The concert tour just wrapped up its Australia dates and have now moved to Asia. It opens in Taiwan on Thursday (12 June), with its next stops being Japan and China. Cast details for the Singapore leg of the concert tour have yet to be confirmed or revealed. An Australian man was arrested after he allegedly shoplifted twice in the transit area of Changi Airport Terminal 1. On 11 June, the police said in a statement that they were alerted to a case of shop theft at a duty-free Shilla Cosmetics and Perfumes store at about 11.30pm. Investigations revealed that a man allegedly took a display bottle of facial product, valued at $466, and left without paying. Officers from the Airport Police Division identified the man and he was arrested on 1 June. Police also believe that the man is involved in another case of shop theft, also at Shilla Cosmetics and Perfumes, that occurred on 27 May. For more on the man's alleged shop theft spree, read here. An 85-year-old woman died after an accident involving a Comfort taxi near Kallang MRT on 10 June. The police were alerted at 10.35am to the accident on Lorong 1 Geylang towards Upper Boon Keng Road. The woman was unconscious and brought to Tan Tock Seng Hospital by the Singapore Civil Defence Force where she died. The 68-year-old male driver has been arrested for careless driving causing death, said the police on 11 June. For more on the accident near Kallang MRT, read here. More than 55,000 Palestinians have died in the Israel-Hamas conflict, according to Gaza health authorities. Local hospitals said that at least 21 people were killed on their way to provide aid at distribution centres. The cause of death for victims near the site are unclear, but the Israeli army said on Wednesday that it fired warning shots at "suspects" that posed a threat to troops. The numbers by the Gaza Health Ministry doesn't distinguish between civilians and combatants, and they said that women and children make up more than half the 55,000 dead. The war, which erupted on 7 Oct 2023 after a surprise Hamas attack, continues unabated despite international calls for a ceasefire. Israel's military maintains that operations are targeting militants, and blamed them for hiding among civilians. For more on the Israel-Hamas war death toll, read here. Trade talks between the US and China aimed at cooling tensions have ended in a deal, said US President Donald Trump. He shared that China will supply US companies with magnets and rare earth metals while the US will walk back its threats to revoke visas of Chinese students. "Our deal with China is done, subject to final approval from President Xi and me," wrote Trump on Truth Social. The talks were held over two days in London, starting from Monday (9 June) to address the conflicts that had emerged since the truce between both parties started in May. Details about the new agreement with China are limited, with White House press secretary Karoline Leavitt saying that Trump is reviewing it. "But what the president heard, he liked," she added. Treasury Secretary Scott Bessent, who was testifying before Congress on Wednesday, said the talks were more narrowly focused and a comprehensive deal will require more time to flesh out. For more on the US-China trade deal, read here. Taiwan was struck by an earthquake on Wednesday (11 June) evening, with the quake hitting seconds after cell phone alarms went off at 7.01pm. The quake about 71 kilometres south of Hualien City. According to the United States Geological Survey, the quake had a magnitude of 5.9 and was detected at a depth of 31.1 kilometres. Taiwan's Central Weather Administration gave the magnitude as 6.4. However, such differences are common considering the differences in sensitivity and detector locations. Buildings in Taipei shook for about a minute, and there were no immediate reports of damage. A firefighter in Chenggong told AFP that when the quake hit, "the computer screen and fan shook heavily". He added, "It was much stronger than previous quakes. I immediately thought about running outside." For more on the Taiwan earthquake, read here. The Jetstar Asia closure has left some customers confused and frustrated over conflicting information, or a lack thereof. The Singapore-based airlines, operated by Qantas Group, announced on Wednesday (11 June) morning that it would be ceasing operations from 31 July. They added that Jetstar Asia flights would be operating with a "progressively reduced schedule". For a customer identified as Daniel, he told CNA that he didn't realise the schedule would be "progressively reduced" prior to its closure. Hence, he thought his two planned trips in July – one to Bangkok, another to Okinawa - would not be affected. On Wednesday morning, though, he received an email confirming that his trip to Bangkok was cancelled, so he made plans to book another flight. Daniel said the email also included his "specific booking reference". Yet, when his friend called the Jetstar Asia's hotline, they were told the flight was still going ahead as planned. He now feels uncertain about his flight to Okinawa and it's not clear which flights would be cut from Jetstar Asia's schedule before it closes. 'I'm wondering, when would they tell me about it? Or how late would they tell me about it?' For more on how customers are affected by the Jetstar Asia closure, read here. An Air India plane crashed at India's Ahmedabad airport, said the police and the airline on Thursday (12 June). There were no details on fatalities from the crash but it was reported that there were more than 200 people on board the flight. Air India said that the flight was headed to Gatwick airport in London and that the plane was "involved in an incident". "At this moment, we are ascertaining the details and will share further updates," they said on X. Flight AI171, operating Ahmedabad-London Gatwick, was involved in an incident today, 12 June 2025. At this moment, we are ascertaining the details and will share further updates at the earliest on and on our X handle ( India… — Air India (@airindia) June 12, 2025 The crash occurred when the aircraft was taking off, television channels reported. Visuals showed debris on fire, with thick black smoke rising up into the sky near the airport. Police officers shared that the plane crashed in a civilian area near the airport. For more on the Air India plane crash, read here. Pop sensation Sabrina Carpenter has surprised fans with the announcement of her seventh studio album, Man's Best Friend, set for release on 29 August, 2025. Carpenter shared the news on Instagram on Wednesday (11 June) along with a photo of her on hands and knees in a black mini dress and black heels. Meanwhile, a man, which is cut out of the photo, is grabbing a her hair. View this post on Instagram A post shared by Sabrina Carpenter (@sabrinacarpenter) Man's Best Friend follows the success of her previous album Short n' Sweet – and the hit song Espresso – which earned her a Grammy for Best Pop Vocal Album earlier this year. The lead single, Manchild, dropped on 5 June, showcasing Carpenter's signature blend of synth-pop and introspective lyrics. For more on Sabrina Carpenter's new album, read here. A Singaporean woman was sentenced to six months' jail in Taiwan for stalking and harassing Golden Melody Award-winning singer Olivia Tsao Ya-wen. Cassandra Low, a woman in her 30s, was identified in a court judgment by the New Taipei District Court. The court found her guilty of endangering Tsao's personal safety, stalking and harassing her, and also publicly insulting the singer. It was reported that Low was a long-time admirer of Tsao and both parties have exchanged personal e-mails and messages over Facebook and Instagram since November 2023. However, the relationship soured after Tsao blocked Low on social media, with the latter issuing threats. In one Facebook post, Low wrote, "I can be very aggressive. The more stubborn she is... don't blame me for whatever I do to her parents." For more on the Olivia Tsao stalking incident, read here. Les Miserables The Arena Spectacular is coming to the Sands Theatre in Singapore in March 2026. The record-breaking concert tour is an expanded version of the Les Miserables The Staged Concert, and features an extraordinary and exciting new design specifically created for larger venues with a cast and orchestra of over 65. UOB cardmembers will have priority pre-sales with a 20 per cent discount. The first starts on Monday (23 June) at 10am, exclusively on Klook. The second will be on Tuesday (24 June) at 10am, and will be available through Marina Bay Sands Ticketing, SISTIC and Klook. Non-UOB cardmembers can sign up for the waitlist now to gain access to the waitlist pre-sale that will start on Tuesday (24 June) 10am. There will be a 15 per cent discount during this pre-sale. The public sale will start on Thursday (26 June) at 12pm, and will be available through Marina Bay Sands Ticketing, SISTIC and Klook. There will be a 10 per cent early bird discount. The concert tour just wrapped up its Australia dates and have now moved to Asia. It opens in Taiwan on Thursday (12 June), with its next stops being Japan and China. Cast details for the Singapore leg of the concert tour have yet to be confirmed or revealed. An Australian man was arrested after he allegedly shoplifted twice in the transit area of Changi Airport Terminal 1. On 11 June, the police said in a statement that they were alerted to a case of shop theft at a duty-free Shilla Cosmetics and Perfumes store at about 11.30pm. Investigations revealed that a man allegedly took a display bottle of facial product, valued at $466, and left without paying. Officers from the Airport Police Division identified the man and he was arrested on 1 June. Police also believe that the man is involved in another case of shop theft, also at Shilla Cosmetics and Perfumes, that occurred on 27 May. For more on the man's alleged shop theft spree, read here. An 85-year-old woman died after an accident involving a Comfort taxi near Kallang MRT on 10 June. The police were alerted at 10.35am to the accident on Lorong 1 Geylang towards Upper Boon Keng Road. The woman was unconscious and brought to Tan Tock Seng Hospital by the Singapore Civil Defence Force where she died. The 68-year-old male driver has been arrested for careless driving causing death, said the police on 11 June. For more on the accident near Kallang MRT, read here. More than 55,000 Palestinians have died in the Israel-Hamas conflict, according to Gaza health authorities. Local hospitals said that at least 21 people were killed on their way to provide aid at distribution centres. The cause of death for victims near the site are unclear, but the Israeli army said on Wednesday that it fired warning shots at "suspects" that posed a threat to troops. The numbers by the Gaza Health Ministry doesn't distinguish between civilians and combatants, and they said that women and children make up more than half the 55,000 dead. The war, which erupted on 7 Oct 2023 after a surprise Hamas attack, continues unabated despite international calls for a ceasefire. Israel's military maintains that operations are targeting militants, and blamed them for hiding among civilians. For more on the Israel-Hamas war death toll, read here. Trade talks between the US and China aimed at cooling tensions have ended in a deal, said US President Donald Trump. He shared that China will supply US companies with magnets and rare earth metals while the US will walk back its threats to revoke visas of Chinese students. "Our deal with China is done, subject to final approval from President Xi and me," wrote Trump on Truth Social. The talks were held over two days in London, starting from Monday (9 June) to address the conflicts that had emerged since the truce between both parties started in May. Details about the new agreement with China are limited, with White House press secretary Karoline Leavitt saying that Trump is reviewing it. "But what the president heard, he liked," she added. Treasury Secretary Scott Bessent, who was testifying before Congress on Wednesday, said the talks were more narrowly focused and a comprehensive deal will require more time to flesh out. For more on the US-China trade deal, read here. Taiwan was struck by an earthquake on Wednesday (11 June) evening, with the quake hitting seconds after cell phone alarms went off at 7.01pm. The quake about 71 kilometres south of Hualien City. According to the United States Geological Survey, the quake had a magnitude of 5.9 and was detected at a depth of 31.1 kilometres. Taiwan's Central Weather Administration gave the magnitude as 6.4. However, such differences are common considering the differences in sensitivity and detector locations. Buildings in Taipei shook for about a minute, and there were no immediate reports of damage. A firefighter in Chenggong told AFP that when the quake hit, "the computer screen and fan shook heavily". He added, "It was much stronger than previous quakes. I immediately thought about running outside." For more on the Taiwan earthquake, read here. The Jetstar Asia closure has left some customers confused and frustrated over conflicting information, or a lack thereof. The Singapore-based airlines, operated by Qantas Group, announced on Wednesday (11 June) morning that it would be ceasing operations from 31 July. They added that Jetstar Asia flights would be operating with a "progressively reduced schedule". For a customer identified as Daniel, he told CNA that he didn't realise the schedule would be "progressively reduced" prior to its closure. Hence, he thought his two planned trips in July – one to Bangkok, another to Okinawa - would not be affected. On Wednesday morning, though, he received an email confirming that his trip to Bangkok was cancelled, so he made plans to book another flight. Daniel said the email also included his "specific booking reference". Yet, when his friend called the Jetstar Asia's hotline, they were told the flight was still going ahead as planned. He now feels uncertain about his flight to Okinawa and it's not clear which flights would be cut from Jetstar Asia's schedule before it closes. 'I'm wondering, when would they tell me about it? Or how late would they tell me about it?' For more on how customers are affected by the Jetstar Asia closure, read here.
Buzz Feed
28 minutes ago
- Buzz Feed
Small American Business Owners Are Sharing How Tariffs Are Affecting Them
When tariffs on Chinese goods spiked dramatically — peaking at over 100% in some cases before recent reductions — small business owners across America found themselves facing an impossible math problem. From toy designers to computer repair shops, countless entrepreneurs discovered that products they depend on — and that simply aren't made anywhere else — suddenly became prohibitively expensive. When u/toymakerinchina, a manufacturer of indoor playground equipment, asked how US small businesses were handling these dramatic tariff increases, the responses painted a sobering picture of an economy under strain: "Honestly, they're not able to cope. I know two people in separate small businesses in this situation who were running the numbers at 104% yesterday. They're already in a place with not-high margins. They also have to get their product out to distributors and on to end consumers, and there is a markup at each step. They're trying to increase direct-to-consumer sales to get a bit more efficient, but that's really hard. It's more likely they'll go bankrupt unless things get fixed fast. There aren't any American alternatives for the imported supply, and there won't be in the future. They're doomed to fail." "I have a computer repair shop. Literally everything computer-related is made in China, with few exceptions — Taiwan and Mexico, sometimes. New computers are about to get real expensive. This will either surge my business, in which case we'll just lower our margin on parts and maintain labor cost, or people are going to pay out the nose for new computers." "I've just had to place an order for $80,000 worth of equipment to be produced. Specialized gear only made in China. The budget was around $110,000 total. Now maybe $150,000. It will hurt if this level — or worse — is in place when it's ready to be shipped. It will take about three months to fabricate it all. I don't know if I have any way to mitigate this." "Our selling prices are going way up. Our sales volume will suffer because our poorest customers won't be able to afford our product. It's an item for people with disabilities. It's sad." "My sister designs plush toys and runs her own business. She's a small operation, but it's been her full-time gig for almost 10 years. On average, her orders are around 2,000 to 5,000 toys at a time. Her latest order was flat-out cancelled by the supplier. She's completely screwed. There simply isn't a viable alternative company that isn't based in China." "The previous steel and aluminum tariffs from the pandemic were rough. This is on another level. I don't think most people understand how screwed we are. Currently, my suppliers are trying to raise prices slowly. They're playing chicken with each other. They know they can't raise everything overnight, as they're also competing with other suppliers, and they still need to move product in order to maintain cash flow. I've been hoarding lots of inventory in preparation, but how long will it take to move that product if the economy is slow due to overall inflation? Our costs are just one aspect of being in business. If our customers are squeezed from every direction by tariffs on everything, then they don't have cash to purchase things from us. Then toss in some idiotic DOGE nonsense, where you eliminate millions of people from viable employment." "I'm about to close shop after doing it as my exclusive job for 10 years. It's screwed." "I have a $48,000 order that I placed two days ago just before the latest China tariff increase. Haven't paid the deposit yet, and now reassessing the move. Considering 1) reducing the order size just to not have such a large bill come due in two to three months and start seeking other suppliers in lower-tariffed countries or the US — although I would expect that even if we found a US manufacturer, the price would work out to be the same if not higher; 2) keep the order, but start adding a tariff fee to invoices now; 3) do nothing and hope the jerk in charge changes this move before the goods hit customs. We've already negotiated a lower price with our supplier, so not much else to be done there. We just raised our prices for the first time in three years to finally pass along some of the cost increases we've incurred in that time. It looked like we'd finally improve our margins over where they've been the last few years. And now this." "My family runs a restaurant. If our prices for takeout containers and other small disposables skyrocket, we're going to put some behind a price instead of giving them out for free. Currently, a large takeout foam container is 20 cents. If it hits 40 cents or more, we will tack on a 25-to-50-cent fee depending on just how high it actually goes. Please, everyone, understand that a small mom-and-pop style restaurant only runs 3% to 6% pure profit if that — right now, we are at about 4%." "My partner had a bunch of inventory on hand pre-tariff so he's just selling that and not ordering anything for now. And he raised prices because he can. He's pointing out that price increases are due to tariffs to educate his red-leaning customers on what they voted for." "Our wholesale will probably shut down after the last of our inventory is sold. It was a good run of 10 years but the Chinese tariffs will make continuing business impossible." "I am a small business owner — I create medieval and costume artistic wigs from wig bases made in China. I will pass the tariff on to the customer as I have no other choice. The US will never make what I need, and other countries making wigs don't come even close to the quality of wigs that China makes, not to mention the trust I have with my years-long suppliers and whatnot. I have no solution because I feel like even if we find loopholes, they can be 'plugged' overnight by the Trump administration. I wish I could include the sum of what my customer pays on tariffs in my pricing separately. That's not going to happen, I know. I will have way fewer customers, lose competitiveness on international markets, and will have to start a second business on the side. I see all this as very pessimistic and feel sorry for all of us affected in the US as well as China." "We're exhausted. We're exhausted from running the numbers, coming up with a barely workable solution, only to have the goal posts moved and that solution obliterated again and again and again. My entire industry is imploding. Yesterday, my company laid off the entire team except for the founder, who is still trying to pivot and find yet another workable solution in hopes he can bring us all back before we find other, more permanent placements." "I have a couple retail stores, and I've received calls from multiple wholesale companies saying many items will get 20% to 50% price increases. This was before China's retaliatory tariff increase. I just won't stock any items that have increased by 50%, other than extreme cases. Any items that I continue to stock will get price increases slower than how much they got increased by tariffs. It's so that customers won't notice the sudden sharp increase in price and leave my business with a sour taste. I will eventually increase it to match the same profit margin in the end, but I will do it slowly, even if it eats away my profit in the short term, to stay competitive. If this tariff war continues, I would assume many retail stores in my industry, maybe even I, won't be able to stay afloat and will go out of business. My hope is that I can outlast the competition while this tariff craze is going on. I just hope I don't have to let go of my employees." "The tariffs pose a huge threat to my business. I have an art business in the US, and I print my artwork on various art and stationery products. All of my stationery is manufactured in either Canada or China. I also print on various specialty papers that are only manufactured outside of the US. I have done some preparation by buying a year's worth of supplies to continue printing some of my own products, but I will have to discontinue many of my items for the foreseeable future. I am a small business and can't afford to buy products at such high markups. If these tariffs last long, I will be forced to close my business. I am already preparing by looking for a part-time job to supplement the loss of income this will be for me. Plus, my customer base is not wealthy people. Even if I had the savings to afford 104% tariffs, my customers would not." "Many of my materials are imported because US manufacturers charge almost 90% more for a similar sheet of material. So now my competitors and I will have to pay more for the product. Then we will mark it up the same percentage. $50 with a 100% markup meant I sold it for $100, and the company earned $50. Now it's $75 per sheet, and I mark it up to $150, and the company makes $75. We're more profitable. Sure, we may lose a few sales here or there because people can no longer afford to buy a sign for their business or housing development, but during COVID when scarcity drove prices up, we never ended up in a worse position, so I doubt we will here since people need our products, just as I'm sure people need your products." Are you a small business owner dealing with the impact of tariffs, or do you have thoughts on how these policies are affecting the economy? Whether you've witnessed these challenges firsthand, have ideas for solutions, or simply want to share your perspective on what this means for American businesses, drop your thoughts in the comments — or anonymous form — below. Note: Responses have been edited for length/clarity.
Associated Press
29 minutes ago
- Associated Press
Australia's defense minister downplays concerns over Pentagon review of multi-billion submarine deal
BANGKOK (AP) — Australia's defense minister dismissed concerns Thursday that a deal between the U.S., Australia and Britain to provide his country with nuclear-powered submarines could be in jeopardy, following a report that the Pentagon had ordered a review. Australian Defense Minister Richard Marles told Sky News Australia that he had known about the review of the deal 'for some time,' saying that it was a 'very natural step for the incoming administration to take.' He noted that the UK's government also reviewed the deal, the centerpiece of a three-way alliance known as AUKUS after it was elected, and that his own government had looked at it as part of its own review of Australia's entire defense posture. 'I think an incoming government having a look at this is something that they have a perfect right to do and we welcome it and we'll work with it,' he said. The deal, worth more than $200 billion, was signed between the three countries in 2021 under then President Joe Biden, designed to provide Australia, one of Washington's staunchest allies in the region, with greater maritime capabilities to counter China's increasingly strong navy. The deal also involves the U.S. selling several of its Virginia-class submarines to Australia to bridge the gap as the new submarines are being jointly built. In January, Australia made the first of six $500 million payments to the U.S. under the AUKUS deal, meant to bolster American submarine manufacturing. Marles met with U.S. Defense Secretary Pete Hegseth on the sidelines of a defense conference in Singapore less than two weeks ago, and told reporters afterward that he had come away with 'a sense of confidence about the way in which AUKUS is proceeding.' 'AUKUS is on track and we are meeting all the timelines that are associated with it,' he said. 'We are very optimistic.' Hegseth's address to the defense forum made multiple mentions of cooperation with Australia but no reference to AUKUS, however, though he did later mention the deal when he was taking questions. Hegseth did urge allies in the Indo-Pacific to increase their defense spending, and underscored the need for a 'strong, resolute and capable network of allies and partners' as the U.S. seeks to counter China.
