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Results for " China " 1,626 found 🔀 AI-powered Shuffle

Science news this week: China's AI kung fu robots, physicists' re-creation of the Big Bang soup, and a teenager buried with her father's bones on her chest

Feb. 21, 2026: Our weekly roundup of the latest science in the news, as well as a few fascinating articles to keep you entertained over the weekend.

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Feb 21 • 7:00 AM EST • Science • livescience.com
German business lobby warns of unfair trade practices by China

German business bosses warned on Friday of what they called destabilising and unfair global business practices by China, ahead of a visit to Beijing by Chancellor Friedrich Merz in which he is expected to focus on cooperation opportunities.

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Feb 20 • 9:55 AM EST • Business • reuters.com
US businesses shift away from China under Trump tariffs

China trade with U.S. midsize businesses plummeted 20% as Trump tariffs hit 37.4%, forcing companies to shift suppliers to Southeast Asia and beyond.

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Feb 19 • 8:49 PM EST • Business • foxbusiness.com
Healthy Returns: FDA chief Marty Makary on compounded GLP-1s, vaccines and China

Makary helms the FDA in the midst of a contentious stretch for the agency, defined by massive staff and budget cuts and sweeping changes to vaccine policy.

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Feb 19 • 2:52 PM EST • Health • cnbc.com
JPMorgan analysis finds Trump’s tariffs are working on China—at a huge cost to American small business

Outflows from midsize U.S. firms to China have dropped by approximately 20% since 2024, but there’s a price.

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Feb 19 • 12:18 PM EST • Business • finance.yahoo.com
JPMorgan analysis finds Trump's tariffs are working on China—at a huge cost to small American business

Outflows from midsize U.S. firms to China have dropped by approximately 20% since 2024, but there's a price.

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Feb 19 • 12:18 PM EST • Business • fortune.com
The Evolving Politics of Climate Change in China

Drawing on official data, policy signals, and diplomatic developments, Neil Thomas and Guoguang Wu write about how economic pressures, industrial policy, and geopolitical competition are reshaping China’s climate priorities.

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Feb 18 • 2:45 PM EST • Politics • asiasociety.org
'Absolute surprise': Homo erectus skulls found in China are almost 1.8 million years old — the oldest evidence of the ancient human relatives in East Asia

A new date for Homo erectus skulls found in central China provides new insight into how and when ancient human relatives reached eastern Asia.

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Feb 18 • 2:00 PM EST • Science • livescience.com
CNBC's The China Connection newsletter: Businesses scramble to reach China's growing experiences economy

From a new theme park to business partnerships, companies are trying new ways to reach China's consumer ahead of the Lunar New Year.

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Feb 17 • 11:00 PM EST • Business • cnbc.com
125 million-year-old dinosaur with never before seen hollow spikes discovered in China

A 125-million-year-old dinosaur just rewrote what we thought we knew about prehistoric life. Scientists in China have uncovered an exceptionally preserved juvenile iguanodontian with fossilized skin so detailed that individual cells are still visible. Even more astonishing, the plant-eating dinosaur was covered in hollow, porcupine-like spikes—structures never before documented in any dinosaur.

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Feb 17 • 7:00 PM EST • Science • sciencedaily.com
India Seeks Reset With Bangladesh as New Leader Takes Oath

India is moving quickly to shore up relations with Bangladesh following last week’s landmark election that swept into power a former ruling party known for prioritizing closer links with China.

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Feb 17 • 3:53 AM EST • Politics • bloomberg.com
Apple’s Siri shocker is flashing a warning AAPL bulls can’t ignore

Apple’s Siri is a game-changer in more ways than one.

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Feb 16 • 10:33 AM EST • Technology • thestreet.com
Hollywood groups condemn ByteDance's AI video generator

Seedance 2.0 is only available in China

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Feb 15 • 4:00 PM EST • Entertainment • spectrumlocalnews.com
Hollywood groups condemn ByteDance's AI video generator

Seedance 2.0 is only available in China

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Feb 15 • 4:00 PM EST • Entertainment • spectrumlocalnews.com
China Built A Shape-Shifting Robot That Can Grow Like A Human

A new robot out of China can change its shape by inflating or deflating, and its creators hope it can be put to use for search and rescue operations.

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Feb 15 • 2:47 PM EST • Technology • bgr.com
Trump, Netanyahu agreed U.S. should press Iran to cut oil sales to China, Axios reports

China accounts for more than 80% of Iran's oil exports. Any reduction in that trade would mean lower oil revenue for Iran.

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Feb 14 • 11:29 PM EST • Politics • detroitnews.com
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Who pays for Newsom's travel? Hint: It's not always taxpayers

Gov. Gavin Newsom's international travel is paid for by the California State Protocol Foundation, a nonprofit that is funded primarily by corporate donations and run by a board Newsom appoints.

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Feb 14 • 10:59 AM EST • Politics • latimes.com
Winter Olympics 2026: China reportedly paid U.S.-born athletes, including Eileen Gu, nearly $14 million
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Feb 14 • 8:08 AM EST • Sports • sports.yahoo.com
Science news this week: China turns a desert into a carbon sink, a Viking Age grave holds a giant who had brain surgery, real-life inception, and a last-minute Valentine's gift idea from nature

Feb. 14 2026: Our weekly roundup of the latest science in the news, as well as a few fascinating articles to keep you entertained over the weekend.

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Feb 14 • 7:00 AM EST • Science • livescience.com
China mulls US manufacturing fund ahead of Xi-Trump summit, business leader says

Leaders to secure ‘very positive’ outcomes but no ‘grand bargain’ during talks in Beijing, AmCham China chair predicts.

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Feb 13 • 8:11 AM EST • Business • scmp.com
How China uses religion for political influence in Taiwan

As China tries to advance its territorial claims over Taiwan, it seems to be using religion to vie for political influence on the island. DW's Rik Glauert reports.

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Feb 13 • 3:30 AM EST • Politics • dw.com
Yes Minister update I’m Sorry, Prime Minister shows that politics may be beyond a joke

Stage version of the beloved sitcom relies on jokes about social progress and cancel culture rather than Westminster machinations

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Feb 13 • 12:00 AM EST • Politics • ft.com
Carter's Cheesesteaks makes history as Chinatown's first Black-owned business

FOX 29's Greg Payne visits Carter's Cheesesteaks, Chinatown's first Black-owned business.

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Feb 12 • 10:59 PM EST • Business • fox29.com
Carter’s Cheesesteaks: First Black-owned business to open in Philadelphia's Chinatown

FOX 29's Greg Payne visits Carter's Cheesesteaks, Chinatown's first Black-owned business.

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Feb 12 • 10:29 PM EST • Business • fox29.com
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CIA pitches Chinese military officers on helping the US in new video amid officer purge in China

The CIA is ramping up its efforts to recruit Chinese spies by releasing a new Mandarin-language video on Thursday that appeals directly to the country’s military officers who may be disillusioned with the corruption in their current government and President Xi Jinping’s extensive purges of top generals.

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Feb 12 • 8:44 PM EST • Politics • cnn.com
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'China shock': Germany struggles as key market turns business rival

China was long a lucrative market for Germany Inc, but the Asian giant's rise in high-tech fields has put the heat on Europe's industrial powerhouse and its companies, big and small."In all key industrial sectors, China has changed from a very attractive market into a very capable competitor," said its CEO Joerg Jetter at company headquarters in Alsdorf, western Germany.

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Feb 11 • 10:20 PM EST • Business • finance.yahoo.com
'China Shock': Germany Struggles As Key Market Turns Business Rival

China was long a lucrative market for Germany Inc, but the Asian giant's rise in high-tech fields has put the heat on Europe's industrial powerhouse and its companies, big and small.

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Feb 11 • 10:20 PM EST • Business • barrons.com
World-leading computational biology pioneer Bao Zhirong returns to China from US
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Feb 11 • 8:00 PM EST • Science • scmp.com
Former California political adviser admits to being secret agent for China

He said he helped elect a "new political star."

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Feb 11 • 2:58 PM EST • Politics • sfgate.com
Fix energy prices to be competitive, business leaders tell EU

Top business leaders urged the European Union on Wednesday to act urgently to bring down energy prices, saying that was key for European industries to be able to compete with the United States and China.

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Feb 11 • 7:38 AM EST • Business • reuters.com
China has planted so many trees around the Taklamakan Desert that it's turned this 'biological void' into a carbon sink

Huge-scale ecological engineering around the edges of one of the world's largest and driest deserts has turned it into a carbon sink that absorbs more CO2 than it emits, research suggests.

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Feb 11 • 6:43 AM EST • Science • livescience.com
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Snowboarder removed by emergency sled after major crash in women's halfpipe

Jiayu Liu of China took a brutal fall on her final hit of her second qualifying run that paused the competition for several minutes.

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Feb 11 • 6:36 AM EST • Sports • usatoday.com
Chinese civilisation’s true age; engineer heads to China: 7 science highlights

From China’s world-first microwave weapon to a fourth ‘Shenlong’ mission, here are some highlights from SCMP’s recent science reporting.

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Feb 10 • 11:30 PM EST • Science • scmp.com
Soybeans Correct with Corn and Wheat Awaiting WASDE, More China Business

Risk off in the outside markets also played a role in the selling pressure according to Lane Akre, economist with Pro Farmer. However, he doesn't think all the China demand is priced into the soybean market.

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Feb 9 • 5:09 PM EST • Business • agweb.com
Scientists Discovered How to Defy the Laws of Gravity—And Now They Can Compress Space and Time

China’s hypergravity machine is the first of its kind, seeing futures that would otherwise stay invisible.

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Feb 9 • 2:00 PM EST • Science • popularmechanics.com
China has reportedly told banks to scale back Treasury holdings

A report on Monday said regulators told banks in China to dial back Treasury holdings. Bond yields edged higher and the dollar dropped.

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Feb 9 • 10:39 AM EST • Business • businessinsider.com
Chinese robot makers ready for Lunar New Year entertainment spotlight

In China, humanoid robots are serving as Lunar New Year entertainment, with their manufacturers pitching their song-and-dance skills to the general public as well as potential customers, investors and government officials.

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Feb 9 • 1:47 AM EST • Entertainment • reuters.com
Chang’e-6 lunar samples reveal a giant impact reshaped the Moon’s interior

A colossal ancient impact may have reshaped the Moon far more deeply than scientists once realized. By analyzing rare lunar rocks brought back by China’s Chang’e-6 mission from the Moon’s largest crater, researchers found unusual chemical fingerprints pointing to extreme heat and material loss caused by a giant impact. The collision likely stripped away volatile elements, reshaped volcanic activity, and left a lasting chemical signature deep below the surface.

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Feb 8 • 7:00 AM EST • Science • sciencedaily.com
TAVR valve for AR , a recent Edwards acquisition, delivers long-term value

The J-Valve System is associated with positive 10-year outcomes for patients with severe AR, according to new research out of China. It also performs well in patients with severe AS.

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Feb 6 • 4:22 PM EST • Business • cardiovascularbusiness.com
US accuses China of secret nuclear test as Trump admin calls for broader nuclear weapons agreement

The United States on Friday accused China of carrying out a secret nuclear test in 2020 as the Trump administration calls for a broader nuclear weapons agreement including both China and Russia.

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Feb 6 • 3:32 PM EST • Politics • cnn.com
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China criticizes U.S. for WHO pullout, accusing it of sidestepping international law

China criticized the United States for withdrawing from the WHO, saying countries should not place domestic politics ahead of international law.

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Feb 6 • 1:44 PM EST • Health • statnews.com
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China Airlines unveils updated inflight entertainment experience in partnership with Stellar Entertainment

China Airlines is elevating the inflight experience through a new partnership with Stellar Entertainment, introducing Disney+ onboard & more.

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Feb 6 • 12:06 PM EST • Entertainment • futuretravelexperience.com
China Consumer Loyalty Business Report 2026: A $35.65 Billion Market by 2030 from $18.46 Billion in 2025 - 88VIP, JD.com, Meituan Black Card, and WeChat Infrastructure Anchor Platform-Led Models

The Chinese loyalty market presents prime opportunities in embedded, platform-driven loyalty models and membership-based systems across various sectors. Integration into super-app ecosystems, leveraging data-driven personalization within regulatory constraints, and blending offline-to-online experiences are key growth avenues. Chinese Loyalty Market Chinese Loyalty Market Dublin, Feb. 06, 2026 (GLOBE NEWSWIRE) -- The "China Loyalty Market Size & Forecast by Spend Value Across 100+ KPIs by Progra

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Feb 6 • 6:27 AM EST • Business • finance.yahoo.com
CJ ENM, JYP CHINA And Tencent Music Entertainment Establish “ONECEAD”

CJ ENM have announced their joint venture project with JYP CHINA and Tencent Music Entertainment called ONECEAD, and introduces new Chinese boy group, MODYSSEY.

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Feb 5 • 6:58 PM EST • Entertainment • forbes.com
Spotted lanternflies are invading the US. They may have gotten their evolutionary superpowers in China's cities.

The alarming spread of spotted lanternflies across the U.S. has been made possible by cities acting as evolutionary incubators, fine-tuning the insects and enabling them to thrive.

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Feb 5 • 5:02 PM EST • Science • livescience.com
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Bessent defends tariffs on Capitol Hill as SCOTUS decision looms

It’s unclear when the Supreme Court may issue its decision, but the nine justices don't return to the bench until Feb. 20 from winter recess

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Feb 5 • 4:08 PM EST • Politics • spectrumlocalnews.com
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Dingdong Announces Entry into Definitive Agreement to Sell its China Business to Meituan

Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, today announced that it has entered into a definitive Share Purchase Agreement (the "Share Purchase Agreement") with Two Hearts Investments Limited ("Buyer"), a wholly-owned subsidiary of Meituan (HKEX: 3690).

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Feb 5 • 4:08 AM EST • Business • finance.yahoo.com
Sports legends join Super Bowl block party in San Francisco’s Chinatown

The Super Bowl festivities continue in San Francisco with a block party taking place in the city’s historic Chinatown.

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Feb 5 • 2:22 AM EST • Sports • nbcbayarea.com
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92-foot dinosaur found by accident is forcing scientists to rethink prehistoric giants - Futura-Sciences

The fossil surfaced in Chongqing’s Tongnan District, within the Suining Formation, a Late Jurassic geological layer. After its accidental exposure, a research team led by Xuefang Wei of the Chengdu Center of China Geological Survey carried out a formal excavation and analysis, ultimately identifying the remains as a previously unknown...

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Feb 4 • 9:00 PM EST • Science • futura-sciences.com
3,700-year-old DNA reveals a family secret that stunned scientists

3,700-year-old DNA found in a cave in Calabria reveals an extreme family connection that baffles scientists.

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Feb 4 • 3:01 PM EST • Science • earth.com
CNBC's The China Connection newsletter: For Chinese businesses, it's not about which AI is the smartest

While U.S.-China AI competition has focused on intelligence, businesses in China have a different benchmark for choosing AI tools.

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Feb 4 • 1:21 AM EST • Business • cnbc.com
Judiciary Committee advances efforts to limit foreign influence by Cuba, China on Florida governments

Legislation would increase disclosure requires for those advocating for countries of concern and restricting the awarding of contracts.

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Feb 3 • 12:28 PM EST • Politics • floridapolitics.com
Top consulting firms test boundaries with China workarounds

Faced with a fraught geopolitical environment, global consultancies are turning to riskier ways to do business in China that some industry and legal experts say test the boundaries of Western sanctions and Beijing's drive to curb foreign involvement in sensitive sectors.

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Feb 3 • 12:04 AM EST • Business • reuters.com
From PopMart to JD.com: Britain and China rush to forge business deals as diplomatic thaw takes hold

Chinese firms moved to pledge hundreds of millions of investment in the U.K. as Starmer's visit to China spurred a flurry of business deals and money flows.

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Feb 2 • 6:20 AM EST • Business • cnbc.com
Hong Kong business confidence rises despite US-China tensions, survey notes

Business confidence in Hong Kong has improved for 2026 despite continuing global uncertainty, according to a survey report published on Monday by the American Chamber of Commerce in Hong Kong.

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Feb 2 • 5:31 AM EST • Business • reuters.com
Alibaba to spend $431 million for Lunar New Year AI push as chatbot war heats up

Alibaba said on Monday it will spend 3 billion yuan ($431 million) to attract users to its Qwen AI app during the Lunar New Year holiday, heating up a race between China's largest tech firms.

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Feb 2 • 12:38 AM EST • Business • reuters.com
Move Fast, but Obey the Rules: China’s Vision for Dominating A.I.

Beijing wants to lead the world in developing cutting-edge artificial intelligence, but it also wants companies to adhere to an increasingly complex set of rules.

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Feb 2 • 12:01 AM EST • Business • nytimes.com
The EV Business Is Slowing in China. What That Means for Tesla Stock.

Combined, NIO, Li, and XPeng sold 74,861 in January, up 1% from a year ago but the slowest growth since January 2023.

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Feb 1 • 12:52 PM EST • Business • barrons.com
China's military has a serious leadership problem

The anti-corruption campaign has left open positions and a lack of senior officials with the experience to fill them.

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Feb 1 • 9:39 AM EST • Business • businessinsider.com
Tenacia Biopharmaceuticals and Golden Age Health Partner to Commercialize ZTALMY® for CDKL5 Deficiency Disorder in Mainland China

SHANGHAI, February 01, 2026--GAH and Tenacia announce a China commercialization partnership for ZTALMY, the first approved therapy for CDKL5 deficiency disorder.

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Jan 31 • 8:00 PM EST • Health • finance.yahoo.com
China Makes Major Advancements in Space Mining Technologies

China is making significant strides in space mining technologies, with a focus on extracting resources from asteroids and other minor planets.

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Jan 31 • 2:30 PM EST • Technology • dailygalaxy.com
Ancient tools in China are forcing scientists to rethink early humans

Archaeologists in central China have uncovered evidence that early humans were far more inventive than long assumed. Excavations at the Xigou site reveal advanced stone tools, including the earliest known examples of tools fitted with handles in East Asia, dating back as far as 160,000 years. These discoveries show that ancient populations in the region carefully planned, crafted, and adapted their tools to meet changing environments.

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Jan 31 • 7:00 AM EST • Science • sciencedaily.com
A World Safe for Autocracy: How Chinese Domestic Politics Shapes

China studies expert Jessica Chen Weiss of the Johns Hopkins School of Advanced International Studies reveals how the Chinese Communist Partyʼs pursuit of domestic survival, which balances sovereignty, security, and development, drives

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Jan 30 • 7:00 AM EST • Politics • aparc.fsi.stanford.edu
Pens Points: Winning ways continue

Here are your Pens Points for this Friday morning… Forwards Anthony Mantha and Egor Chinakhov scored in a 31-second span in what was a dominant second period, as the Pittsburgh Penguins breezed by the Chicago Blackhawks 6-2 on Thursday night for their fifth straight victory. [Recap] As seen during the game, the Penguins officially recalled […]

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Jan 30 • 6:00 AM EST • Sports • pensburgh.com
Trump warns UK against doing business with China after Starmer visits Beijing

It comes after the US president threatened to impose tariffs on Canada if it went through with economic deals struck with China

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Jan 30 • 4:33 AM EST • Business • theguardian.com
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Trump warns UK against doing business with China after Starmer visits Beijing

It comes after the US president threatened to impose tariffs on Canada if it went through with economic deals struck with China

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Jan 30 • 4:33 AM EST • Politics • theguardian.com
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China, Israel continue to collaborate in science and tech despite unrest in Gaza

While Beijing supports Palestine and has a fractious relationship with Tel Aviv’s closest ally, cutting-edge innovations keep them together.

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Jan 30 • 4:00 AM EST • Science • scmp.com
Trump says ‘very dangerous’ for UK to do business with China, after Starmer hails progress in Beijing

US president warns Keir Starmer over closer ties with China during British PM’s trip to secure lower tariffs and better access to Chinese market

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Jan 29 • 11:32 PM EST • Business • theguardian.com
Trump reportedly says 'very dangerous' for UK to do business with China as Starmer looks to mend ties

Starmer is on a 4-day visit to China this week, the first trip by a British leader in eight years, signaling an attempt at resetting the bilateral ties.

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Jan 29 • 8:58 PM EST • Business • cnbc.com
Trump says 'very dangerous' for UK to get into business with China

U.S. President Donald Trump on Thursday warned the United Kingdom against getting into business with China, saying it would be "very dangerous."

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Jan 29 • 8:08 PM EST • Business • reuters.com
What happened when Starmer met Xi Jinping?

Pippa Crerar joins Kiran Stacey from Beijing as she follows Keir Starmer on his historic trip to China

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Jan 29 • 11:09 AM EST • Politics • theguardian.com
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Alibaba to merge with China's Zelos on $2 billion robovan business, WSJ reports

Alibaba's logistics arm plans to merge its autonomous-driving unit Cainiao with China's Zelos Technology, forming a new entity valued at approximately $2 billion, the Wall Street Journal reported on Thursday, citing sources familiar with the matter.

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Jan 29 • 1:44 AM EST • Business • reuters.com
China, U.K. vow to build long-term strategic partnership in bid to reset strained ties

U.K. Prime Minister Sir Keir Starmer said he hopes to build "more sophisticated" ties with China as the two nations look to revive the bilateral relationships.

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Jan 29 • 1:05 AM EST • Business • cnbc.com
Xi-Starmer meeting: Chinese leader tells PM he hopes both countries can ‘rise above differences’

At Beijing talks, British prime minister Keir Starmer tells Xi he wants a ‘more sophisticated’ relationship with China

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Jan 29 • 12:31 AM EST • Politics • theguardian.com
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At World’s Busiest Port, China’s Unbalanced Economy Comes Into View

The shipping traffic and factories never stop in China’s port city of Ningbo, but the local housing market has crashed and nearby restaurants sit empty.

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Jan 29 • 12:00 AM EST • Business • nytimes.com
Burner phones and lead-lined bags: a history of UK security tactics in China

Starmer’s team is wary of spies but such fears are not new – with Theresa May once warned to get dressed under duvet

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Jan 28 • 2:07 PM EST • Politics • theguardian.com
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China’s latest war game uses hospital and science ships for espionage

It is self-evident that Beijing is not promoting peace, health or scientific research.

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Jan 28 • 8:30 AM EST • Science • thehill.com
Investment and Statecraft: The International Politics of Sovereign Wealth Funds - Georgetown Journal of International Affairs

In 1953, Kuwait established the world’s first sovereign wealth fund to invest the country’s oil revenues and generate returns that would reduce its reliance on a single resource. Since then, over 100 separate funds have been created to preserve national wealth and ensure long-term fiscal sustainability. Today, they manage over $10 trillion in global assets. In this discussion with GJIA, political economist Kathryn Lavelle explains the increasingly novel dynamics that surround fund behavior and what the world can come to expect from their growing presence in international financial markets. GJIA: When it comes to the roles sovereign wealth funds (SWFs) play in global markets and politics, what would you say makes them unique? Kathryn Lavelle: Sovereign wealth funds (SWFs) operate on behalf of governments as investors. That in itself is a strange relationship. Within them, a core contest takes place between the state’s interests (or sovereign) part of the dynamic, and the money interests (or wealth) part of it, and these two aspects are frequently in contradiction, serving fundamentally different goals. SWFs are also quite fascinating because when you talk to the people who manage these funds, they have an interest in convincing you that the decisions are made almost exclusively on a financial basis—they really will go to great lengths to differentiate their government owners and those who make the management decisions. At the same time, these people ultimately answer to someone in power. Therefore, for most SWFs, it remains deeply unclear who is actually making the investment decisions and for what purposes. Of course, it is not always clear how other vehicles, such as hedge funds and private equity make the decisions they do, but I think what a lot of people find particularly disconcerting about SWFs is that they seem to act on behalf of people who have a different identity from their own. People who could be trying to manipulate politics and markets in a way that would have a long-term effect on their own populations. Regular investors come and go at will, and they only share an interest in profit as far as most of us understand. However, SWFs have that extra “sovereign” part right behind them that obscures their true interest. GJIA: These funds can be found in countries all across the globe, in both authoritarian states and democracies. Would you say SWFs differ in their goals and structures between regime-type? KL: It is not necessarily regime type that makes the goals and structures of SWFs different. It has to do with their economies. Let’s look at a country like China. There’s going to be a debate about exactly how to characterize the regime, but it is a country with many different kinds of sovereign wealth funds, and a particularly opaque state connection to each. At one time, some of the state-owned Chinese oil companies created specialized investment vehicles listed outside Chinese markets that excluded parts of the firms that were more associated with human rights violations. At the same time, the China Investment Corporation (CIC)­—China’s largest SWF—draws a lot of concern, not necessarily because of its investment activities, but because of the dynamics of global politics. So, I wouldn’t really tie differences to regime types themselves in a wholesale way, but rather to how such funds are perceived and how they are structured. Saudi Arabia’s SWF is getting all kinds of attention for its involvement in Hollywood, and this takes me right back to when I was a student in the 1980s, when people were concerned about Japanese investment entities buying assets in Hollywood. They aren’t quite the same in financial terms, but it’s the same kind of concern about foreign investment that drives people to be suspicious, and the whole idea that “foreigners are influencing Hollywood.” This holds true across industries, and it reflects where politics are in places like the United States right now. One metric we can try to look at is transparency, where all the funds will tell you, “we are transparent.” The problem you’ll keep running into with this approach is how you value things. When trying to do comparative studies of equity markets, you’ll find that every country doesn’t use Generally Accepted Accounting Principles like we do in the United States. A fund may appear opaque politically and not want people to show what they’re invested in or what their intent with that investment is, but they could also just not be able to report it because of the way it was purchased, or the kinds of shares they purchased. There are some assets out there that really are difficult to put a monetary value on. GJIA: To what extent do domestic politics shape SWF behavior in both the investing “home” country and the recipient “host” country? KL: This depends on the type of fund present and also on the extent to which voters’ political views are able to influence the fund. For example, in a democratic home state like Norway, the SWF doesn’t invest in nuclear weapons or tobacco because of social concerns, but there is a continuing debate over whether it should invest in oil, even though that’s where most of the money comes from. The degree to which Norway will continue to make those investments, and whether they contradict the government’s overall climate goals, is an open question in Norwegian politics. Because of the way the fund’s governance is structured, it may not be easy to resolve. On the other hand, some people consider pension funds, like the State Teachers Retirement System (STRS) in Ohio, to be quasi-SWF. They have a very strict separation between the people who make up the management division and the fund owners. No teacher or professor would want to invest in things that may harm the future of their students. At the same time, a fund manager might see an opportunity in a diversified multinational corporation that offers a good return, despite it deriving part of its revenue from e-cigarettes. These contests are very apparent. Domestic politics can work in host countries too. A good example is Singapore’s SWF, Temasek, investing in Thailand’s telecommunications sector. If you study political economy, you already know that countries everywhere are uncomfortable with foreign ownership of their telecom sectors because a foreign entity could monitor or manipulate our communications with each other. In the case of Temasek, there was significant pushback from Thai citizens surrounding the deal, which went on to influence national political sentiment toward Singapore as a whole, underscoring the risks some SWFs may face with their investment choices. In this case, fund behavior led to the dissolution of the entire Thai government in 2006 and a subsequent coup d’état. GJIA: To address some of this unease, the Santiago Principles were established in 2009 to ostensibly promote trust and transparency. From your perspective, have these mechanisms actually changed fund behavior? KL: In international relations theory, we always like to have a clear set of norms and best practices­—the orientation we want the proverbial ship to be going in. In that regard, the Santiago Principles at least got the discussion going about which direction SWFs should take at a time when people were very skittish about the growing size of these funds. Nobody wanted them to be out there and potentially destabilizing economies, so talks about disclosure, conditions for withdrawal, and the independence of managers were helpful when initiated. The biggest stumbling block was that there wasn’t exactly a good way to measure compliance with the Principles, let alone how to hold funds to them. If you read the Principles, they’re overall quite vague. In general, a fund doesn’t want to reveal how and why they make certain investment decisions because that information is proprietary—a fund makes money off of how and why it makes decisions—so how do you reconcile that with loosely-defined ideas of openness? Some decisions might have a political purpose. The bottom line is that trying to figure out and assign a score to compliance is not easy, and it is therefore the reason why the Santiago Principles never really got off the ground to the point where they could truly direct fund behavior. GJIA: Many emerging markets are looking to build their own SWFs from mineral and oil revenues. Historically, have funds shaped development trajectories in these countries? KL: I think the big story in international emerging markets investment is that the investment is increasingly no longer unidirectional. In the past multinational corporations of primarily Western background were the main form of foreign direct investment in a country. That has changed dramatically, to the point where you have companies from so-called “developing countries” taking over companies in the United States. Therefore, the landscape of international investment has changed, and I think SWFs are certainly a possibility to be the next step in the game. Historically, you didn’t need an entire financial vehicle to reinvest commodity revenues in your country, but as emerging markets get more financially sophisticated, their capacity to operate such funds has increased. SWFs would allow treasuries to move from relying on holding foreign exchange assets like cash or government bonds to having broader financial markets and targeted growth areas, while easing pressure on welfare expenditures. GJIA: With their increasing financial weight, do you see the presence of SWFs being a factor in the political choices leaders will have to make with regard to domestic and foreign policy? KL: It will depend on just how big the funds get. One of the reasons people are already apprehensive is because of their scale, and if certain SWFs in certain countries achieve a large-enough size, the presence will absolutely be cause for concern. The other factor political leaders will have to consider are their objectives. It’s not always clear how to define a SWF, or even where its activity is concentrated, but it is certainly a worry from the perspective of national security of opaque external investment. More than that, I think one of the most interesting questions going forward is whether the United States, the home to the world’s largest financial markets, will develop its own fund, for which the Trump administration announced a plan. There have also been several proposals in Congress. Were it to come into being, it would have tremendous weight. At the same time, one of the hallmarks of U.S. capitalism is a lack of government ownership of shares, so it would not be clear how such a fund would be received in domestic politics, or which direction it would take. Given how politically fragmented the country is, a Democratic administration would likely be concerned about different sectors of the economy, such as healthcare, and want investment there, rather than a Republican administration, which might prefer defense industries. No investment vehicle could thrive under conditions of such instability. Moreover, it remains unclear where the money to fund a theoretical U.S. SWF would come from. It would be a fundamentally different entity depending on whether it is financed with debt, economic surplus, commodities, or the sale of state companies, as in the case of Singapore. If it is debt, or government borrowing of some form, then the fund would have to outperform whatever the cost of that debt is, which is not an easy thing to do. I think our political leaders have enough on their plate. Our system has worked well keeping political and investment functions generally separate. We have seen different forms of business rise and fall, and even the perception of different countries, all of which funds are tied to. Unless a major SWF either starts—like in the case of the United States—or collapses—an issue that concerns the Saudis, I don’t see any political tsunamis on the horizon. . . . Kathryn Lavelle is the Ellen and Dixon Long Professor of World Affairs at Case Western Reserve University in Cleveland, Ohio. Her research explores the exchange between domestic and international and political institutions with a particular emphasis on political economy and multilateralism. Dr. Lavelle’s first book, The Politics of Equity Finance in Emerging Markets, explored the political circumstances that surround large issues of stock in the developing world. After being granted tenure at Case Western, she was awarded an American Political Science Association Congressional Fellowship and named the William A. Steiger fellow, a designation given to the most promising political scientist in her class of fellows. While in Washington during 2006-2007, she worked on the staff of the House Committee on Financial Services on issues related to domestic and international monetary policy. Dr. Lavelle holds a PhD in political science from Northwestern University; an M.A. in government and foreign affairs from the University of Virginia; and a bachelor’s degree in international economics from Georgetown University. She is a permanent member of the New York Council on Foreign Relations. This transcript has been lightly edited for clarity and length. Interview conducted by Sid Mehrotra. Image Credit: Jason Leung, Unsplash Content Licenses, via Unsplash

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Jan 28 • 6:00 AM EST • Politics • gjia.georgetown.edu
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