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US Secretary of State Marco Rubio has called on China to prevent Iran from closing the Strait of Hormuz, one of the world's most important shipping routes, BBC reported.

His comments came after Iran's state-run Press TV reported that parliament had approved a plan to close the Strait but added that the final decision lies with the Supreme National Security Council. 

Any disruption to the supply of oil would have profound consequences for the economy. China in particular is the world's largest buyer of Iranian oil and has a close relationship with Tehran, according to BBC.

Oil prices surged following the US attack on Iranian nuclear sites, with the price of the benchmark Brent crude reaching its highest level in five months.

South Korea's top trade negotiator said on Sunday he would raise concerns about potential U.S. restrictions on chipmakers in China when he meets U.S. officials in Washington this week for the third round of technical discussions in tariff talks, Reuters reported.

"I will pass on the concerns among those in the industry and take utmost care," South Korean Trade Minister Yeo Han-koo told reporters before leaving for Washington, when asked to comment about concerns the U.S. may adopt policies to make it difficult for foreign chipmakers to operate in China.

Yeo also said Seoul may not stick to the July deadline, suggesting talks may continue beyond July 8 amid political and economic uncertainties in the U.S.

South Korea, currently subject to a blanket 10% tariff with a 25% country-specific duty on pause for 90 days, agreed with the U.S. in their opening round of trade talks in late April to craft a trade deal reducing tariffs by July 8, according to Reuters.

The renewed US-China trade truce struck in London left a key area of export restrictions tied to national security untouched, an unresolved conflict that threatens a more comprehensive deal, two people briefed on detailed outcomes of the talks told Reuters.

Beijing has not committed to grant export clearance for some specialized rare-earth magnets that US military suppliers need for fighter jets and missile systems, the people said. The United States maintains export curbs on China’s purchases of advanced artificial intelligence chips out of concern that they also have military applications.

At talks in London last week, China’s negotiators appeared to link progress in lifting export controls on military-use rare earth magnets with the longstanding US curbs on exports of the most advanced AI chips to China. That marked a new twist in trade talks that began with opioid trafficking, tariff rates and China’s trade surplus, but have since shifted to focus on export controls, according to Reuters.

In addition, US officials also signalled they are looking to extend existing tariffs on China for a further 90 days beyond the August 10 deadline agreed in Geneva last month, both sources said, suggesting a more permanent trade deal between the world’s two largest economies is unlikely before then.

A Chinese-backed militia is protecting new rare earth mines in eastern Myanmar, according to four people familiar with the matter, as Beijing moves to secure control of the minerals it is wielding as a bargaining chip in its trade war with Washington, Reuters reported.

China has a near-monopoly over the processing of heavy rare earths into magnets that power critical goods like wind turbines, medical devices and electric vehicles. But Beijing is heavily reliant on Myanmar for the rare earth metals and oxides needed to produce them: the war-torn country was the source of nearly half those imports in the first four months of this year, Chinese customs data show.

Beijing's access to fresh stockpiles of minerals like dysprosium and terbium has been throttled recently after a major mining belt in Myanmar's north was taken over by an armed group battling the Southeast Asian country's junta, which Beijing supports, according to Reuters.

Talks aimed at cooling tensions between the US and China have ended in a "deal", according to US President Donald Trump.

He said China had agreed to supply US companies with magnets and rare earth metals, while the US would 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," Trump wrote on his media platform Truth Social.

It followed two days of intense talks in London to resolve conflicts that had emerged since the two sides agreed a truce in May, after a rapid escalation of tariffs had nearly paralysed trade between the world's two largest economies.

Nestled between India and China, Nepal possesses a unique and complex trade history, along with significant market opportunities. However, the country faces multiple constraints—including geographical challenges, weak infrastructure, procedural bottlenecks, and an often unstable political-economic environment. Moreover, the government’s approach to trade negotiations tends to be reactive, shaped by perceived contexts rather than long-term strategy. In this light, it is essential to institutionalise effective standard operating procedures (SOPs) for trade negotiations. Such SOPs would ensure consistency, enhance transparency, and provide strategic direction across bilateral, subregional, and regional trade engagements.

The need for an SOP

Nepal’s trade diplomacy currently relies heavily on ad hoc arrangements and the personal experience of individual bureaucrats. This knowledge-driven, personality-based approach often leads to inconsistencies, a lack of institutional memory, and missed opportunities on bilateral, regional, and multilateral platforms.

A national SOP would promote coherence across government departments and ensure continuity during political transitions. It would also empower negotiation teams with procedural clarity and sectoral insights while presenting Nepal as a prepared and credible counterpart in international forums.

Core SOP features for trade negotiations

Institutional mechanisms

Since the Ministry of Industry, Commerce and Supplies (MoICS) leads trade negotiations, it should initiate the formation of a formal negotiation coordination committee. This body should include representatives from the Ministry of Foreign Affairs, Ministry of Finance, Ministry of Agriculture, private sector associations, academia, legal experts, and provincial authorities. Together, they would set national priorities, vet negotiation positions, and guide strategies.

SOP cycle

Pre-negotiation phase: Conduct data-driven impact assessments, define national priorities, consult relevant stakeholders, and prepare position papers.

Negotiation phase: Select delegation members, assign roles, and maintain real-time internal coordination.

Post-negotiation phase: Identify legal provisions, outline ratification processes, create implementation roadmaps, and establish monitoring indicators.

Sectoral working group

A specialised group should bring together representatives from transit service providers, agriculture, digital trade, transport logistics, and quality assurance sectors to provide technical expertise. Key issues should include Nepal’s transit rights and infrastructure cooperation. The SOP must prioritise multimodal transport corridors, efficient cross-border logistics, and enhanced trade facilitation through modernised customs systems and logistics hubs.

Trade facilitation

Efforts should focus on easing the movement of people, goods, services, capital, and data—while remaining mindful of risks associated with automation and digitalisation. Nepal must align with the WTO Trade Facilitation Agreement and leverage regional initiatives such as BBIN, BIMSTEC, SAARC, SASEC, and the Belt and Road Initiative (BRI).

To support this, a negotiation readiness toolkit is needed. This should include templates, records of past negotiations, sectoral briefings, simulation exercises, and case studies. Trade facilitation measures must align with the Sustainable Development Goals (SDGs) and be benchmarked accordingly.

Establishing bodies such as a National Trade Negotiation Council (NTNC), a National Trade Consulting Forum, or a Trade Intelligence and Analysis Unit is crucial for institutional continuity and informed decision-making.

Infrastructure development—including rail, road, and inland waterway connectivity—must be a priority. Logistical alignment, mutual recognition of standards and certifications, and the promotion of low-carbon, climate-smart trade chains should drive Nepal’s trade agenda.

Legal and risk mitigation

Trade agreements must include robust provisions for dispute resolution, force majeure, and other legal safeguards. It is vital to protect the interests of small producers, uphold environmental standards, and ensure policy space for future reforms.

Inclusion and capacity building

An inclusive trade negotiation process must involve wide consultations with the private sector, civil society, and marginalised communities. The SOP should ensure that all relevant stakeholders are engaged meaningfully.

Capacity building is essential. Members of the negotiation team must receive training in legal interpretation, economic analysis, negotiation tactics, and language skills. Ongoing collaboration with think tanks and trade institutions will enhance capacity and knowledge.

Meeting key performance indicators (KOIs) and conducting annual performance reviews by independent experts will help ensure the negotiation team’s effectiveness and accountability.

Conclusion

Institutionalising SOPs for trade negotiations through a phased, strategic approach is crucial for Nepal. This process should be backed by technical and financial support, and ensure coherence between national development plans and regional trade commitments. Effective monitoring and evaluation must be embedded to achieve desired trade outcomes and social impact.

Nepal should not view its position between two dominant economic powers as a limitation, but a strategic opportunity. By transitioning from a reactive player to a proactive influencer in regional and global trade, Nepal can better serve its national interests. Now is the time to establish a negotiation process that is strategic, inclusive, and driven by national priorities—one that enables Nepal to negotiate with confidence, not just consent.

China has established the International Organization for Mediation (IOMed), marking it the world’s first intergovernmental legal body dedicated to resolving international disputes through mediation. The signing ceremony, held last week in Hong Kong, saw the participation of Nepal’s Foreign Minister Arzu Rana Deuba, alongside around 400 high-level representatives from 85 countries spanning Asia, Africa, Latin America and Europe.

Designed to function similarly to the International Court of Justice and the Permanent Court of Arbitration in The Hague, IOMed is positioned as a potential alternative to the World Trade Organization (WTO). China has actively encouraged Nepal to join the organization at the earliest. During a sideline meeting at the event, Chinese Foreign Minister Wang Yi expressed his hope that Nepal would soon become a member, emphasizing the opportunity to jointly contribute to enhancing global governance.

While Minister Deuba did not offer any commitment to being a member-state, Nepal’s participation in the event is meaningful. Observers say it signals that Nepal could join the Chinese initiative in future. 

According to Xinhua, China’s state-run news agency, Wang Yi noted that more than 80 countries and nearly 20 international organizations sent representatives to the ceremony. He highlighted that this strong turnout demonstrates broad international support for mediation as a dispute-resolution mechanism, one that aligns with the interests of developing countries and adheres to the principles of the UN Charter.

The organization operates across three key areas. First, it provides mediation services for disputes between states, submitted by mutual consent. Official documents explain that such disputes must not be excluded by a concerned state through a formal declaration, nor may they involve a third state without its prior approval.

Second, IOMed facilitates mediation for commercial or investment disputes between a state (or an international organization) and private entities from another state, again requiring mutual consent. Third, it offers mediation for disputes arising from international commercial relationships between private parties.

China began laying the groundwork for IOMed in 2022, collaborating with like-minded nations to issue a joint statement. From South Asia, Sri Lanka and Pakistan are among the founding members, alongside Algeria, Belarus, Cambodia, Cameroon, China, Côte d’Ivoire, Djibouti, Equatorial Guinea, Ethiopia, Gabon, Indonesia, Laos, Madagascar, Serbia, Sudan, Thailand and Zimbabwe.

The organization promotes mediation as a flexible, cost-effective and efficient means of resolving disputes, emphasizing a party-driven approach. Chu Kar-kin, a member of the Chinese Association of Hong Kong and Macao Studies, in an interview with The Global Times, described IOMed as a “new chapter in global dispute resolution,” underscoring its role in fostering peaceful and harmonious settlements.

Chinese Foreign Minister Wang reiterated China’s longstanding commitment to resolving differences through mutual understanding, dialogue and win-win cooperation.

Tian Feilong, a law professor at Minzu University of China, told Global Times that IOMed reflects China’s traditional legal culture, which prioritizes consensus and reconciliation over adversarial litigation. This approach, he argued, strengthens international cooperation and social capital, distinguishing it from Western legal mechanisms rooted in confrontation.

He further noted that IOMed embodies the spirit of internationalism and the vision of a "community with a shared future for mankind," reinforcing rule-of-law principles in global governance. By championing mediation, China seeks to offer a more collaborative and inclusive model for resolving international disputes, aligning with its broader diplomatic philosophy.

The World Health Organization approved a motion allowing the Palestinian flag to be flown at its headquarters, following a vote at its annual assembly. The proposal passed with 95 votes in favor, four against, and 27 abstentions.

Brought forward by China, Pakistan, and others, the move is seen as a symbolic step toward broader international recognition of Palestinian statehood, Reuters reported.

Israel rejected the resolution, describing it as a threat to legal standards. The United States, which intends to leave the WHO, did not participate in the vote.

Palestinians presently have observer status at the WHO and were recently granted access to worldwide health alerts under WHO standards, according to Reuters.

The UN Security Council has called on Israel to lift its blockade on Gaza, warning of a rapidly deteriorating humanitarian situation.

The UN reported that aid deliveries, including food, water, and medicine, have been blocked for over 10 weeks, putting Gaza’s 2.1m residents at risk of famine. One in five people is facing starvation, and large parts of the territory remain under evacuation orders or militarized zones, as reported by UN news.

Humanitarian organizations say Israel’s proposed military-run aid system is unworkable and violates humanitarian principles. Nearly 500,000 people are facing catastrophic hunger, and over 400 aid workers have been killed in the conflict.

As stated by UN news, several countries, including China and the UK, urged Israel to comply with international law, allow immediate aid access, and end its military campaign, warning that continued restrictions will worsen civilian suffering.

Preparations for the first-ever Sagarmatha Sambaad, set to take place in Kathmandu from May 16–18, are in their final stages.

The organizers have confirmed that all logistical and technical arrangements meet international standards to ensure the event’s success. Hosted by the Government of Nepal at the Soaltee Hotel, the dialogue will focus on the theme “Climate Change, Mountains, and the Future of Humanity.”

The high-level forum aims to address urgent global environmental challenges, particularly climate change and its disproportionate impact on mountain ecosystems and vulnerable communities. The event, which will be held biennially from now on, will convene 140 foreign delegates from 40 countries, including ministers, senior government officials, diplomats, donor agency representatives, climate experts, environmentalists, and development leaders. Together, they will seek regional and international cooperation for a unified response to the climate crisis.

According to Sambaad Secretariat Deputy Speaker of China Xiao Jie is confirmed as a chief guest of the program.

He is vice chairman of the standing committee of the 14th  National People’s Congress. Other high-level guests of the programs are Bhupender Yadav, Minister of Environment, Forest and Climate Change of India, and Mukhtar Babayev, COP29 Presidency, Minister of Ecology and Natural Resources of Azerbaijan.

President Donald Trump announced a "total reset" in US-China ties after both countries agreed to lower tariffs on each other's products for 90 days. He stated that he intends to meet with Chinese President Xi Jinping shortly and does not believe tariffs will return to their previous levels, according to BBC.

The agreement is a significant step toward lowering tensions in the continuing trade war. The United States will reduce duties on Chinese imports from 145 percent to 30 percent, while China will reduce levies on American goods from 125 percent to 10 percent.

Analysts believe the reduction are larger than projected, however 30 percent remains a high percentage. Following the announcement, US markets grew and rebounded to earlier this year's levels, indicating high investor confidence, BBC reported.

In a major step toward easing trade tensions, the United States and China have agreed to reduce tariffs for a 90-day period starting May 14, according to a joint announcement from both governments.

US Treasury Secretary Scott Bessent stated that both nations will implement a mutual tariff reduction, with US duties on Chinese imports set to decrease to 30 percent and Chinese tariffs on American goods lowered to 10 percent, as reported by BBC.

The agreement also establishes a platform for ongoing conversation on economic and trade issues. China’s Ministry of Commerce expressed optimism that the US would remain committed to cooperation and emphasized that reducing tariffs aligns with the broader interests of the global economy, according to BBC.

Chinese President Xi Jinping reaffirmed China's commitment to collaborating with Russia to protect the United Nations authority and protect developing nation’s interests from bullying and unilateralism during his official visit to Russia.

In talks with Russian President Vladimir Putin on Thursday, Xi emphasized the shared responsibility of both nations as permanent members of the UN Security Council. He advocated for collaborative efforts to promote a fair interpretation of World War II history, a multipolar international order, and inclusive, balanced globalization, according to Xinhua.

Xi is in Moscow to attend events commemorating the 80th anniversary of the Soviet victory in the Great Patriotic War.

Oil prices dropped over $1 a barrel on Wednesday amid doubts over US-China trade talks and easing concerns about global supply disruptions.Brent crude settled at $61.12, down $1.03, while US West Texas Intermediate fell $1.02 to $58.07, Reuters reported.

Investor sentiment fell as US-China trade talks, scheduled for Switzerland, were considered as unlikely to achieve results. At the same time, hints of progress in US-Iran nuclear talks have allayed concerns about restricted supplies from the OPEC supplier.

Gasoline stocks in the United States unexpectedly increased, increasing demand concerns as the summer driving season approaches. Although oil stockpiles declined by 2m barrels, the increase in gasoline negated optimistic optimism, according to Reuters.

Geopolitical tensions in the Middle East and signals of reduced investment from US producers provided some relief, but market volatility is set to linger.

China on Wednesday expressed regret and concern over Indian strikes on Pakistan, urging both sides to show restraint in response to a major escalation between its nuclear-armed neighbours, The Indian Express reported.

India and Pakistan exchanged heavy artillery along their contested frontier on Wednesday, after New Delhi launched missile strikes on its arch-rival.

Pakistan said Indian strikes had killed at least eight people, and India said Pakistani artillery fire had killed three civilians along the de facto border in contested Kashmir, according to The Indian Express.

China, which shares land borders with both countries and is a close ally of Pakistan, said it expressed “regret over India’s military action this morning” and said it was “concerned about the current developments”.

US Senator Jeanne Shaheen of the US Senate Foreign Relations Committee has opposed the Department of Government Efficiency’s effort to dismantle the Millennium Challenge Corporation (MCC). 

Issuing a press statement, he said that since its establishment under President George W Bush over 20 years ago, the MCC has a proven track record of delivering economically transformative, transparent and accountable returns on foreign assistance through its projects, helping partner countries such as Kosovo and Senegal strengthen their democratic institutions and reduce their dependency on aid in the long-term. “The Millennium Challenge Corporation is a bipartisan, independent government agency established in law by Congress to reduce global poverty through economic growth,” he said.  

Just last year, Congress passed, and President Biden signed into law, a bipartisan bill that expands MCC’s pool of eligible candidate countries. MCC is a necessary tool to counter China’s Belt and Road Initiative and dismantling it will open the door for the PRC to further exploit and capitalize on America’s retreat, as it has with Nepal, he said.  “This destructive dismantling of MCC does nothing to make America stronger; it only harms our economic and national security interests.”

Meanwhile, for the current fiscal year, MCA-Nepal has a budget of Rs 13.36bn. Of this amount,
Rs 9.9bn would be funded by the MCC and the remaining Rs 3.45bn would be borne from internal sources.

However, after MCA-Nepal did not spend the budget, about 58 percent of the budget has been returned to the Ministry of Finance. Not only in the current fiscal year but also in the last fiscal year, MCA-Nepal’s expenditure was unsatisfactory. MCA-Nepal had spent only about 30 percent of the total budget for the last fiscal year and returned the remaining 70 percent of the budget.

The government had allocated Rs 10.84bn for the last fiscal year to spend on projects under MCA-Nepal, out of which Rs 7.60bn was returned. The budget could not be spent as per the target as the compensation distribution and acquisition of land required for the construction of the power transmission line has slowed down. 

MCA-Nepal is among the agencies returning the highest amounts under capital expenditures.