Foreign News
Trump and Xi reach trade deal, easing tensions in fierce US-China rivalry
United States President Donald Trump and Chinese President Xi Jinping have agreed to call off a mutual escalation in their countries’ trade war, lowering the temperature in a heated confrontation that has threatened to upend the global economy.
Trump and Xi sealed a one-year trade truce on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, where the two leaders met face-to-face for the first time since 2019.
But while Trump and Xi’s agreement offered a reprieve to businesses unsettled by months of back-and-forth trade salvoes, it did little to roll back existing trade barriers and left numerous points of contention between the sides unresolved.
“The apparent results of this meeting will be a pause and a small roll back in the trade war,” Dennis Wilder, a professor at Georgetown University who worked on China at the CIA and the White House’s National Security Council, told Al Jazeera.
“Both sides have not given up their trade weapons but merely have agreed to stop firing as long as both sides hold to the agreements,” Wilder said.
Under the deal, China agreed to defer its planned export controls on rare earths, while the US will drop a threatened 100 percent tariff on Chinese goods.
Trump said he would also lower a 20 percent fentanyl-related tariff to 10 percent after Xi agreed to “work very hard” to stem flows of the synthetic opiate.
“I believe he is going to work very hard to stop the death that is coming in,” Trump said on Air Force One after departing South Korea.
Trump, who hailed his 90-minute meeting with Xi as “amazing”, said the issue of rare earths had been “settled” under the agreement, which he said would be renegotiated every year.
“There’s no roadblock at all on rare earths – that will hopefully disappear from our vocabulary for a little while,” Trump said.
Trump, whose meeting with Xi capped a whirlwind tour of Asia that included stops in Malaysia and Japan, said China had also agreed to purchase “tremendous amounts” of American soya beans.
After Trump’s comments, Xi said the sides had reached a “consensus to address problems” in the talks, but did not directly reference specific details of the agreement.
Washington and Beijing should “promptly refine and finalise follow-up actions” to implement the consensus and “offer tangible results to reassure both countries and the global economy,” Xi said, according to a readout by the state-run Xinhua News Agency.
China’s Ministry of Commerce later confirmed aspects of the agreement, including the one-year deferral of its export controls.
The ministry also said Trump had agreed to suspend plans to extend Washington’s blacklist of firms prohibited from doing business with US companies and individuals to subsidiaries, and that both sides would pause tit-for-tat port fees.
Asian stock markets were largely unmoved, with benchmark indexes in Hong Kong, Shanghai and Sydney closing lower and Japan’s main index finishing flat.
China’s plans to require companies anywhere in the world to obtain a licence to export goods containing even trace amounts of its rare earths had raised fears of massive disruption to global supply chains.
Chinese producers hold a near monopoly on the supply of the critical minerals, which are used to make everything from smartphones to fighter jets.
Shan Guo, a partner with Shanghai-based consultancy Hutong Research, said the cut in the fentanyl tariff was “largely expected”.
“China has been asking for the fentanyl cut since Stockholm, it is now getting what it wants using rare earth as leverage,” Guo told Al Jazeera, referring to US-China trade negotiations that took place in the Swedish capital in July.
“It is a 10 percent cut instead of 20, likely because US still wants to maintain some leverage as the two sides talk more going forward. Regardless, this lowered tariff on China will reduce the competitive disadvantage of Chinese goods vs ASEAN peers,” Guo said, referring to the bloc of 11 Southeast Asian economies, many of which, like China, rely heavily on exports.

Expectations for a deal had been modest ahead of the summit, and Thursday’s agreement left most tariffs and export controls hindering trade between the sides in place.
Trump’s pledge to halve his fentanyl tariff would leave the average US duty on Chinese goods at around 47 percent, and China’s average tariff on US products at about 32 percent.
Washington continues to include more than 1,000 Chinese firms on its export control list, while Beijing has dozens of US companies on its comparable “unreliable entity list”.
Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore, said the agreement could be seen as a “partial freeze” or “minor rollback” in the US-China trade war.
Cameron Johnson, a partner at Shanghai-based consultancy Tidalwave Solutions, said US-China ties should not deteriorate in the near term, describing the agreement as “probably the best both sides could have done given the circumstances”.
But Johnson noted Trump’s comments that the agreement would be subject to annual review.
“It allows both sides to calibrate the relationship, and also buying power, of each side every year now going forward,” he told Al Jazeera.
[Aljazeera]
Foreign News
Ex-Malaysia PM Najib Razak given 15-year jail term over state funds scandal
Former Malaysian Prime Minister Najib Razak has been jailed for 15 years for abuse of power and money laundering, in his second major trial for a multi-billion-dollar state funds scandal.
Najib, 72, was accused of misappropriating nearly 2.3 billion Malaysian ringgit ($569m; £422m) from the nation’s sovereign wealth fund 1Malaysia Development Berhad (1MDB).
On Friday afternoon a judge found him guilty in four charges of abuse of power and 21 charges of money laundering.
The former PM is already in jail after he was convicted years ago in another case related to 1MDB.
Friday’s verdict comes after seven years of legal proceedings, which saw 76 witnesses called to the stand.
The verdict, delivered in Malaysia’s administrative capital Putrajaya, is the second blow in the same week to the embattled former leader, who has been imprisoned since 2022.
He was handed four 15-year sentences on abuse of power charges, as well as five years each on 21 money laundering charges. The jail terms run concurrently under Malaysian law.
On Monday, the court rejected his application to serve the remainder of his sentence under house arrest.
But the former prime minister retains a loyal base of supporters, who claim that he’s a victim of unfair rulings and who have showed up at his trials calling for his release.
On Friday, dozens of people gathered outside the court in Putrajaya in support of Najib.
The 1MDB scandal made headlines across the world when it came to light a decade ago, embroiling prominent figures from Malaysia to Goldman Sachs and Hollywood.
Investigators estimated that $4.5bn was siphoned from the state-owned wealth fund into private pockets, including Najib’s.
Najib’s lawyers claim that he had been misled by his advisers – in particular the financier Jho Low, who has maintained his innocence but remains at large.
But the argument has not convinced Malaysia’s courts, which previously found Najib guilty of embezzlement in 2020.
That year, Najib was convicted of abuse of power, money laundering and breach of trust over 42 million ringgit ($10m; £7.7m) transferred from SRC International – a former unit of 1MDB – into his private accounts.
He was sentenced to 12 years in prison, but saw his jail term halved last year.
The latest case concerns a larger sum of money, also tied to 1MDB, received by his personal bank account in 2013. Najib said he had believed the money was a donation from the late Saudi King Abdullah – a claim rejected by the judge on Friday.
Separately Najib’s wife, Rosmah Mansor, was sentenced to ten years in jail in 2022 for bribery. She is free on bail pending an appeal against her conviction.
The scandal has had profound repercussions on Malaysian politics. In 2018 it led to a historic election loss for Najib’s Barisan Nasional coalition, which had governed the country since its independence in 1957.
Now, the recent verdicts has highlighted fissures in Malaysia’s ruling coalition, which includes Najib’s party United Malays National Organisation (UMNO).
Najib’s failed house arrest bid on Monday was met with disappointment from his allies but celebrated by his critics within the same coalition.
Malaysia’s Prime Minister Anwar Ibrahim called for politicians on all sides to respect the court’s decisions.
Former Malaysian lawmaker Tony Pua told the BBC’s Newsday programme that the verdict would “send a message” to the country’s leaders, that “you can get caught for corruption even if you’re number one in the country like the prime minister”.
But Cynthia Gabriel, founding director of Malaysia’s Center to Combat Corruption and Cronyism, argued that the country has made little headway in anti-corruption efforts despite the years of reckoning after the 1MDB scandal.
Public institutions have not been strengthened enough to reassure Malaysians that “the politicians they put into power would actually serve their interests” instead of “their own pockets”, she told Newsday.
“Grand corruption continues in different forms”, she added. “We don’t know at all if another 1MDB could occur, or may have already occurred.”
(BBC)
Foreign News
Two dead in 50-vehicle pile up on Japan highway
A pile-up involving at least 50 vehicles on a highway in central Japan has left two people dead and 26 injured, according to police.
The incident was caused by a crash between two trucks, sparking a chain reaction that set at least 10 vehicles on fire, local police said.
A 77-year-old woman from Tokyo was killed, and another body was discovered in the driver’s seat of a burnt-out truck. Five people were seriously injured and 21 suffered minor injuries, police said.
There was a heavy snow warning in place at the time of the crash. Police believe icy surfaces likely caused the trucks to skid on the roads.
The crash happened on the Kan-etsu Expressway in Minakami, Gunma prefecture, about 160km (100 miles) north-west of Tokyo, at about 19:30 local time (10:30 GMT) on 26 December.
It took about seven and a half hours to put out the fire, police said.
Following the incident, a section of the highway was closed, with a long line of vehicles, many charred beyond recognition, stuck in the outbound lane. Work is under way to tow them away.
A man in his 60s, whose vehicle was involved in the accident, told local media outlet NHK he heard a loud explosion from the far end of the pile-up and saw fire during the crash. The blaze then spread to other vehicles, he said.
He said he was evacuated to a nearby toll gate with about 50 other people and spent the night in the hallway there.
Nexco, which operates the road, said checks were needed to see if the surface was damaged by the fire.
The company is warning travellers not to use the highway.
(BBC)
Foreign News
New York blanketed in snow, sparking travel chaos
New York has woken up to its heaviest snowfall in nearly four years after a winter storm blanketed parts of the US north-east.
New York City’s Central Park recorded 4.3in (11cm) of snow, its highest since January 2022, while other parts of the state saw up to 7.5in of snow, said the US National Weather Service (NWS).
New York Governor Kathy Hochul declared a state of emergency for more than half of counties in the state ahead of the storm.
On Saturday, more than 900 flights were cancelled, mostly in the New York area, while more than 8,000 were delayed nationwide, according to tracking website FlightAware.
(BBC)
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