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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.

Vietnam's trade ministry has ordered stronger import controls to prevent illegal transshipment, in an attempt to avoid US tariffs that might harm the country's export-driven economy.

Effective April 15, the directive warns that rising trade tensions may fuel fraud, undermining attempts to avoid foreign sanctions. Though no country was mentioned, China accounts for about 40 percent of Vietnam's imports, and Washington accuses Beijing of using Vietnam to avoid tariffs, Reuters reported.

Vietnam is at risk of a 46 percent tariff from the United States, which has been postponed until July and might harm GDP and foreign investment.

According to Reuters, the decision comes after Chinese President Xi Jinping paid a visit and pledged to collaborate to check goods' provenance. Earlier this week, Beijing also cautioned countries against signing trade deals with the United States at its expense.

China's first-quarter economic growth beat expectations, underpinned by solid consumption and industrial output even as policymakers brace for the impact of U.S. tariffs that analysts say pose the biggest risk to the Asian powerhouse in decades, Reuters reported.

President Donald Trump has ratcheted up tariffs on Chinese goods to eye-watering levels, prompting Beijing to slap retaliatory duties on U.S. imports in an intensifying trade war between the world's two biggest economies that markets fear will lead to a global recession.

Data on Wednesday showed China's gross domestic product (GDP) grew 5.4% in the January-March quarter from a year earlier, unchanged from the fourth quarter, but beat analysts expectations in a Reuters poll for a rise of 5.1%.

The outlook is expected to dim, however, as Washington's tariff shock hits the crucial export engine, heaping pressure on Chinese leaders as they try to keep the world's second-largest economy on an even keel and prevent mass job losses, according to Reuters.

Chinese President Xi Jinping called for stronger industrial and supply chain cooperation with Vietnam and wider collaboration in emerging fields, the Chinese foreign ministry said on Monday, amid heightened trade tensions prompted by hefty U.S. tariffs, Reuters reported.

Xi starts a three-nation tour of Southeast Asia this week, beginning his state visits with Vietnam from April 14 to 15.

China hiked its levies on imports of U.S. goods to 125% on Friday, hitting back at U.S. President Donald Trump's decision to single out the world's No. 2 economy for higher duties.

Xi also urged strengthening coordination and cooperation through regional initiatives such as the East Asia Cooperation and the Lancang-Mekong Cooperation, the ministry said, citing an article by the Chinese leader published in Vietnam media, according to Reuters.

President Donald Trump's trade war rattled global markets anew on Thursday as stocks and oil prices sank amid fears China may once again respond in kind with higher tariffs to match the latest levies imposed by the United States, Reuters reported.

Battered global markets and anxious global leaders welcomed Wednesday's reprieve when Trump suddenly decided to freeze most of his hefty new duties for 90 days.

U.S. Treasury Secretary Scott Bessent tried to further assuage skeptics by telling a meeting of Trump's cabinet that more than 75 countries wanted to put in place a process for trade negotiations, and Trump himself expressed hope of a trade deal with China.

But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic, according to Reuters.

Chinese companies that sell products on Amazon (AMZN.O), opens new tab are preparing to hike prices for the U.S. or quit that market due to the "unprecedented blow" from President Donald Trump's tariff hikes, the head of China's largest e-commerce association said, Reuters reported.

Trump said on Wednesday he would raise tariffs on Chinese imports to 125% from the 104% level already in effect, escalating the high-stakes confrontation between the two world's largest economies.

"This isn't just a tax issue, it's that the entire cost structure gets entirely overwhelmed," said Wang Xin, the head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 3,000 Amazon sellers.

"It'll be very hard for anyone to survive in the U.S. market," she told Reuters.

Some sellers are looking to increase prices in the U.S. while others are looking to find new markets, Wang said.

Twenty people were killed in a fire that broke out in an apartment for the elderly at a nursing home in China, state media said on Wednesday, while authorities arrested its owner as they investigate the cause, Reuters.

It was the latest in a series of similar incidents in recent years, including a fire at a hospital in the capital in 2023 that killed 26 patients and wounded dozens.

Tuesday's fire in the city of Chengde in the northern province of Hebei blazed for two hours before it was doused, the official Xinhua news agency and the state-backed Global Times newspaper said, citing local authorities, according to Reuters.

China said Tuesday it would “fight to the end” and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports, Associated Press reported.

The Commerce Ministry said the U.S.‘s imposition of “so-called ‘reciprocal tariffs’” on China is “completely groundless and is a typical unilateral bullying practice.” 

China has taken retaliatory tariffs and the ministry hinted in its latest statement that more many be coming. 

“The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate,” the ministry said. “The U.S. threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the US insists on its own way, China will fight to the end," according to Associated Press.

China is organizing the Boao Forum for Asia (BFA) from March 25 to 28, in Qionghai City, South China’s Hainan Province. It is an annual event at which government officials, heads of international organizations, business leaders and scholars converge to discuss the most pressing issues of the day. However, there will not be high-level participation from Nepal as Nepal’s Ambassador to China Krishna Prasad Oli has been told to represent Nepal.

Last year, then Prime Minister Pushpa Kamal Dahal’s foreign affairs advisor Rupak Sapkota had attended the program. In the past, there used to be participation of the prime minister or president but nowadays Nepal is sending low-key officials. Officials say as Nepal’s top political leadership snubbed the invitation, China has not shown interest to lend the invitation to the top political leadership.

Launched in 2002, the forum has witnessed Asia’s regional integration as it pulled through the Asian financial crisis in 1997, the SARS epidemic in 2003, the global financial crisis in 2008 and the recently concluded Covid-19 pandemic.

In the first conference, King Birendra was invited in 2001 and in 2015 then President Ram Baran Yadav represented Nepal.  Now, the region once again finds itself on the cusp of change. “Our world is in the middle of a pivotal transition, where disruptive shifts are profoundly reshaping the international order,” BFA Secretary General Zhang Jun said at a press conference in Beijing. “What this means is that the BFA, as a high-level platform dedicated to dialogue and cooperation, now stands at a new horizon, where it is charged with both greater expectations and heavier responsibilities,” he added.

With the growth of its power, China’s overseas interests are rapidly expanding. Along with this, in addition to the extreme containment and suppression by Western countries, there are also various ‘stigmatizing’ hype such as ‘neo-colonialism’, ‘debt trap’, ‘China threat theory’ etc.. This highlights the sharp cognitive opposition between China and Western countries in expanding overseas interests.

Expansion methods

Win-win cooperation vs zero-sum game

The concept of win-win cooperation proposed by China emphasizes achieving complementary resources and shared advantages through close cooperation with host countries, thereby fostering mutual benefit and ultimately leading to common development and maximized interests. The ‘Belt and Road Initiative’, put forward by China in 2013 and based on the concept of win-win cooperation, has achieved numerous results, covering policy communication, facility construction, trade cooperation, investment growth, and project construction etc., injecting new momentum into global economic growth. China’s pursuit of a win-win development path in expanding its overseas interests is the right path for the world.

Driven by zero-sum game mentality, in international politics, Western countries focus on safeguarding their own interests, viewing China’s expansion of overseas interests as a threat to their own interests, and fearing that China’s strength could undermine their power and status in host countries. The zero-sum game mentality espoused by Western countries is detrimental to others and not beneficial to themselves, often leading to tension and conflict in international relations.

Expansion approach

Peaceful development vs ‘Thucydides Trap’

The term ‘Thucydides Trap’ is used metaphorically to describe the competitive situation among major powers in contemporary international relations. Specifically, when an emerging power rises and attempts to play a greater role on the international stage, it often clashes with existing powers in terms of resources, markets, influence, or geopolitical advantages. This situation of mutual confrontation and threat may ultimately lead to the outbreak of war. Based on the cognitive logic of Thucydides Trap, Western countries often pursue containment and suppression strategies towards the friendly cooperation between China and host countries in areas such as economy, military, and technology.

However, ‘Thucydides Trap’ is not an iron law, and war does not necessarily break out between major powers. China’s concept of peaceful development reflects the common pursuit of peace and development by countries around the world, offering the possibility to avoid the ‘Thucydides Trap’. Based on the concept of peaceful development, China has always been committed to becoming a builder of political peace, a contributor to economic development, and a maintainer of social order for host countries in the expansion of its overseas interests.

Expansion path

Co-consultation, co-construction, and sharing vs colonial plunder

The expansion of overseas interests by Western countries employs the bloody and brutal method of colonial plunder. Specifically, Western countries maintain their colonial rule through violent occupation of land and signing unequal treaties. By occupying, enslaving, and exploiting weak countries, they gain financial and trade privileges, as well as plunder natural, human, and strategic resources. They expand their sphere of influence and balance competitors through colonial expansion in order to ensure their own security and national interests. They regard themselves as disseminators of civilization, attempting to establish a kind of social structure and cultural identity in colonies that is similar to that of their homeland.

Guided by the principles of co-consultation, co-construction, and sharing, China promotes joint consultation with host countries in the expansion of overseas interests. This ensures that host countries have an equal voice and participation rights, enabling political disputes and economic conflicts to be resolved through consultations. Cooperative projects are jointly undertaken by both parties, with the results shared to foster mutual development and prosperity. Furthermore, it aims to involve citizens of host countries as participants, contributors, and beneficiaries of these projects, particularly ensuring that local residents also reap the benefits, thereby creating a conducive and friendly environment for the expansion of China’s overseas interests.

Expansion goal

Community with a shared future for mankind vs hegemony and power politics

Based on the concept of a community with a shared future for mankind, China is dedicated to promoting high-quality development in host countries during the expansion of its overseas interests, implementing global development initiatives, global security initiatives, and global civilization initiatives in these countries. China is proactively addressing various complex social issues, and encouraging more citizens of host countries to participate in Chinese projects and share dividends, thereby contributing Chinese wisdom and solutions to the economic and social development of host countries and demonstrating its responsibility as a major power. The concept proposed by China has garnered support and endorsement from the majority of countries worldwide, particularly those from the ‘Global South’.

The hegemonic behavior of Western countries manifests as gross interference in the internal affairs of other countries, manipulation of international affairs, and expansion of spheres of influence through military means. The core idea of power politics is that ‘power is truth’, referring to the policies and activities of Western powers that bully the weak, arbitrarily dominate other countries’ people, interfere in other countries’ internal affairs for their own interests, and infringe on other countries’ interests. Based on the logic of hegemonism and power politics, Western countries have seriously damaged international peace and stability, the well-being of people all over the world, and the common interests of all mankind through various perverse acts in the world.

Conclusion

In response to the cognitive opposition between China and western countries in expanding overseas interests, China should uphold the concept of peaceful development and win-win cooperation, and strive to build a community with a shared future for mankind. At the same time, in countries where China’s overseas interests are expanding, China should take practical actions of extensive consultation, joint contribution, and shared benefits to practice its own propositions and demonstrate international fairness and justice.

The author is  Dean of China’s Overseas Interest Studies Institute at Yangtze Normal University

After years of strained relations, China has recently intensified its engagement with the Nepali Congress (NC), Nepal’s oldest and largest democratic party. Over the past decade, the relationship between China and the NC had soured due to various political and diplomatic reasons. However, recent developments indicate a shift in China’s approach, as Chinese diplomats and leaders of the Communist Party of China (CPC) have begun actively engaging with NC leaders.

A notable example of this renewed engagement is the recent visit of an NC delegation led by senior leader Sujata Koirala to China. During the visit, the delegation toured several Chinese cities, including Chengdu, and held meetings with senior CPC officials. This marks a significant step in China’s efforts to strengthen ties with the Koirala family, a prominent political dynasty within the NC.

In early March, Sun Haiyan, Vice-Minister of the International Department of the CPC Central Committee, met with Koirala. According to a Chinese readout, Sun praised the NC and the Koirala family for their long-standing commitment to fostering China-Nepal friendship and for upholding the correct stance on issues related to Xizang (Tibet) and Taiwan. Sun emphasized the CPC’s willingness to enhance exchanges and cooperation with the NC and other major political parties in Nepal, urging both sides to focus on implementing the consensus reached between the two countries.

Koirala, in response, reaffirmed the NC’s firm support for the One-China principle and expressed her party’s eagerness to leverage the 70th anniversary of Nepal-China diplomatic relations to deepen mutual understanding and collaboration. This marks a notable shift from the past, when relations between China and the NC deteriorated significantly. One key incident was in 2016, when NC President Sher Bahadur Deuba shared a stage with a representative of the Tibetan government-in-exile at an event organized by the India Foundation in Goa. This incident, among others, led to a period of mistrust and strained ties.

Other factors contributing to the rift included China’s preferential engagement with Nepal’s communist parties, often at the expense of sidelining the NC, as well as the NC’s public criticism of China’s alleged border encroachment and its cautious stance on China’s Belt and Road Initiative (BRI). During this period, Chinese state media frequently portrayed the NC as a pro-Indian party, further exacerbating tensions.

However, relations began to improve following the signing of the Framework for Belt and Road Cooperation during Prime Minister KP Sharma Oli’s visit to China in December 2023. NC General Secretary Gagan Kumar Thapa and Foreign Minister Arzu Rana Deuba played pivotal roles in facilitating the agreement, despite strong opposition within their own party. Their support for the BRI marked a turning point in China-NC relations, even as senior NC leaders like Prakash Sharan Mahat and NP Saud continued to voice concerns about the initiative, arguing that it contradicted the party’s position against taking loans under the BRI.

Since the signing of the BRI agreement, there has been a noticeable increase in visits by NC leaders to China, and the Chinese Embassy in Kathmandu has actively engaged with senior NC figures. This represents a departure from China’s previous approach of primarily engaging with Nepal’s communist parties, a trend that had persisted for over a decade. During this period, China focused on fostering unity among Nepal’s communist factions, leading to a perception among NC leaders that they were being marginalized.

China’s recent outreach to the NC suggests a recognition of the need to broaden its engagement beyond communist parties. This shift is seen as an effort to build a more balanced and inclusive relationship with Nepal’s political landscape. While senior communist leaders have frequently visited China over the years, NC leaders have rarely done so. The current wave of engagement indicates that both sides are working to address past misunderstandings and strengthen bilateral ties.

This renewed engagement comes at a critical juncture, as China seeks to consolidate its influence in Nepal amid evolving regional dynamics. By fostering closer ties with the NC, China aims to ensure that its initiatives, including the BRI, gain broader political support within Nepal. For the NC, this represents an opportunity to reaffirm its role as a key player in Nepal’s foreign policy and to balance its relationships with both China and India.