Panama court is asked to cancel Hong Kong firm’s contract to run canal ports

Complaint by local lawyers to supreme court follows US demands to reduce China’s alleged influence on waterway

Two Panamanian lawyers have lodged a lawsuit with the country’s supreme court in an attempt to cancel a Hong Kong-based company’s concession to operate two ports at either end of the Panama canal.

Their complaint – filed a day after the US secretary of state, Marco Rubio, told Panama’s president, José Raúl Mulino, to reduce China’s alleged influence on the canal – argues that the contract for the two ports is unconstitutional.

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China has reacted in kind to Trump’s tariffs, but a deal may still emerge

Beijing will defend its core interests, but its initial response is more cautious than when Trump imposed levies in 2018

Moments after Donald Trump introduced tariffs of 10% on Chinese goods, Beijing retaliated with countermeasures.

China’s finance ministry put tariffs of 10-15% on imports of a range of US goods and its anti-trust regulator announced an investigation into Google. Several US companies were also added to China’s “unreliable entity” list, potentially restricting their ability to conduct business in the country.

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Mitch McConnell calls Trump tariffs ‘bad idea’ but most Republicans toe line

Ex-Senate majority leader is one of few party members to criticize president’s trade war with US neighbors and China

Republicans on Capitol Hill have largely fallen in line with Donald Trump’s move to impose tariffs on the US’s biggest trading partners, with the notable exception of the former Senate majority leader Mitch McConnell, who called it a “bad idea”.

With even Trump admitting that the tariffs – 25% on imports from Canada and Mexico and 10% on China – might cause “some pain”, there was mostly strong support from the president’s loyalists. Jason Smith, chair of the ways and means committee of the House of Representatives, said the tariffs would “send a powerful message that the United States will no longer stand by as other nations fail to halt the flow of illegal drugs and immigrants into our country”.

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Trump threatens to widen tariffs with warning against EU – US politics live

President says measures against bloc will ‘definitely happen’ following moves against Mexico, Canada and China

The director-general of the World Health Organization (WHO) has appealed to leaders to pressure the Donald Trump administration to reverse its decision to pull out of the UN’s health agency.

“Bringing the US back will be very important,” Associated Press reports Tedros Adhanom Ghebreyesus told attenders of a budget meeting. “And on that, I think all of you can play a role.”

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Asian stock markets tumble in response to Trump tariffs

European futures also down more than 3% after Trump indicates tariffs will ‘definitely happen’ in EU countries

Asian sharemarkets tumbled in early trade on Monday after the Trump administration’s imposition of tariffs on Mexico, Canada and China sparked fears of an escalating global trade war.

Taiwan’s Taiex fell 4.4% at the open, led by a more than 6% plunge in semiconductor heavyweight TSMC. Japan’s Topix index was down as much as 2.3% and Korea’s Kospi fell as much as 2.4%, led by major exporters with exposure to global markets, including Canada and Mexico such as electronics manufacturers Samsung and LG, and automaker Kia. China’s sharemarkets remain closed for the lunar new year holidays.

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Trump warns Americans that tariffs may cause ‘pain’– US politics live

US president says measures against Mexico, Canada and China will ‘all be worth the price’

After Donald Trump’s return to the White House, Volkswagen, Germany’s largest carmaker, said that tariffs would have a “harmful economic impact” on American consumers, as well as the international automotive industry.

German automakers say the tariffs will cause inflation for consumers.

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Canada and Mexico can avoid tariffs before Saturday’s deadline, says Trump’s commerce pick

Howard Lutnick testified at his US Senate confirmation hearing for his nomination to head commerce department

Donald Trump’s nominee to run the commerce department, Howard Lutnick, said on Wednesday that Canada and Mexico can avoid looming US tariffs if they act swiftly to close their borders to fentanyl, while vowing to slow China’s advancement in artificial intelligence.

Lutnick, a billionaire Wall Street CEO, at his US Senate confirmation hearing said he has advised Trump to pursue across-the-board tariffs country by country to restore “reciprocity” to America’s trading relationships and said he would erect stronger curbs on China’s access to US technology, including advanced AI semiconductors.

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EU launches ‘simplification’ agenda in effort to keep up with US and China

Ursula von der Leyen announces plans to cut red tape and boost innovation in second term as head of European Commission

The EU executive has announced “an unprecedented simplification effort” to cut regulations and boost innovation in an attempt to reverse Europe’s economic decline and better compete with China and the US.

In her first major policy announcement since starting a second term as the European Commission president last month, Ursula von der Leyen outlined policy proposals intended to boost Europe’s flagging economy.

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Across Asia, hundreds of millions gather to mark lunar new year

From China to Indonesia, the year of the snake symbolises wisdom and vitality and is marked by family gatherings and festive red banners across many parts of East and Southeast Asia

Hundreds of millions of people across Asia will celebrate the lunar new year with their families on Wednesday, as they bid farewell to the year of the dragon and usher in the year of the snake.

In China, people will enjoy eight days of consecutive public holidays for the 2025 Spring festival, an opportunity to share meals, attend traditional performances, and set off firecrackers and fireworks.

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How Trump tariffs could upend car markets in Europe, the US and China

Levies threaten exporters to US market, while scrapping of subsidies will hit EV sales – and Tesla could gain

The internal combustion engine appears to hold a special place in Donald Trump’s psyche. During his inauguration speech last week, he made a “sacred pledge” to raise US car production to “a rate that nobody could have dreamt possible just a few years ago”.

Car making and the oil industry – not AI, computer chips, or even cryptocurrencies – were the only two industries the new US president highlighted as he promised to make America a “manufacturing nation once again”.

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Doomsday Clock set closer to midnight than ever to stress global catastrophe risks

Atomic scientists push clock to 89 seconds before midnight, citing nuclear risk, AI and climate crisis as a ‘warning’

A panel of international scientists has moved their symbolic “Doomsday Clock” closer to midnight than ever before, citing Russian nuclear threats amid its invasion of Ukraine, tensions in other world hotspots, military applications of artificial intelligence and the climate crisis as factors underlying the risks of global catastrophe.

The Bulletin of the Atomic Scientists set the clock to 89 seconds before midnight – the theoretical point of annihilation. That is one second closer than it was set last year. The Chicago-based non-profit created the clock in 1947 during the cold war tensions that followed the second world war to warn the public about how close humankind was to destroying the world.

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We tried out DeepSeek. It worked well, until we asked it about Tiananmen Square and Taiwan

The AI app soared up the Apple charts and rocked US stocks, but the Chinese chatbot was reluctant to discuss sensitive questions about China and its government

The launch of a new chatbot by Chinese artificial intelligence firm DeepSeek triggered a plunge in US tech stocks as it appeared to perform as well as OpenAI’s ChatGPT and other AI models, but using fewer resources.

By Monday, DeepSeek’s AI assistant had rapidly overtaken ChatGPT as the most popular free app in Apple’s US and UK app stores. Despite its popularity with international users, the app appears to censor answers to sensitive questions about China and its government.

What happened on June 4, 1989 at Tiananmen Square?

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What was the Umbrella Revolution?

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India and China agree to resume direct flights for first time in five years

The development is the latest sign of thaw in diplomatic relations between the world’s two most populous nations

India and China have agreed in principle to resume direct flights between the two nations, nearly five years after the Covid-19 pandemic and subsequent political tensions halted them.

The announcement on Monday came at the conclusion of a visit to Beijing by New Delhi’s top career diplomat and heralds the latest signs of a thaw in the frosty ties between the world’s two most populous nations.

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Tesla takes EU to court over tariffs on EVs made in China

Elon Musk’s company still imports large number of cars into Europe from its Shanghai factory

Tesla has filed a complaint against the European Commission after the imposition of tariffs by the bloc on its Chinese-made electric vehicles.

The EU announced its decision to impose tariffs on all imports of Chinese electric cars in June, alleging that the Chinese government had provided unfair state subsidies to manufacturers in order to win a dominant position in the emerging industry. EU leaders approved the tariffs in October.

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Weather tracker: cold wave sweeps China as new year approaches

Temperatures in some areas could fall to more than 10C below seasonal average. Plus, blizzard fears in Alaska

China was hit by snowstorms and a significant cold wave over the weekend, and the extreme conditions are expected to persist as the country approaches the new year on Wednesday.

Temperatures are forecast to drop to more than 10C (18F) below the seasonal average in some areas, with northern regions experiencing the most severe weather. Maximum temperatures in Shenyang are expected to plummet by more than 13C, while Yinchuan could tumble to -8C.

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China’s top diplomat to visit UK in February for talks with David Lammy

Source says purpose of Wang Yi’s visit is to hold first UK-China strategic dialogue since 2018

China’s top diplomat, Wang Yi, is due to visit the UK next month for talks with the British foreign secretary, David Lammy, the Guardian has learned.

The Foreign Office (FCDO) is drawing up plans to host the Chinese foreign minister in mid-February, according to three people briefed on the plans. The FCDO declined to comment.

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Relatives plead with Thailand not to deport 48 Uyghur men to China

Detainees fear their return could be imminent despite UN experts urging Bangkok to halt possible transfer

Relatives of Uyghurs detained in Thailand for more than a decade have begged the Thai authorities not to deport the 48 men back to China, after the detainees suggested their return appeared imminent.

A UN panel of experts this week urged Thailand to “immediately halt the possible transfer”, saying the men were at “real risk of torture or other cruel, inhuman or degrading treatment or punishment if they are returned”.

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How the world has responded to Trump’s Paris climate agreement withdrawal

From Europe to Africa and South America, countries reaffirm commitment to tackle crisis

World leaders, senior ministers and key figures in climate diplomacy have, one by one, reaffirmed their commitment to the Paris agreement this week, in response to the order by Donald Trump to withdraw the US from the pact.

The prospect of the world keeping temperatures to 1.5C above pre-industrial levels, as the treaty calls for, was damaged by the incoming US president’s move. Hopes of meeting the target were already fast receding, and last year was the first to consistently breach the 1.5C limit, but the goal will be measured over years or even decades and stringent cuts to emissions now could still make a difference.

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Britain’s response to Russian ‘spy ship’ is game of political messaging – for now

Deteriorating security environment and incidents in Baltic have forced military reassessment in northern Europe

Submarines normally operate in secret, lurking in the deep. So when the British defence secretary, John Healey, authorised a Royal Navy Astute-class attack sub to surface close to the Russian “spy ship” Yantar south of Cornwall in November, it was unusual enough.

What was even more notable, however, was that the minister went on to tell the House of Commons on Wednesday what he had done. It was, Healey said, conducted “strictly as a deterrent measure”, as was his decision to accuse the Kremlin of spying on the location of undersea communication and utility cables that connect Britain to the world.

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Trump threatens 10% tariff on China and considers EU levy

Yuan and Chinese stocks fall despite suggestion of lower tariff than president mentioned during campaign

Donald Trump has threatened to impose a 10% tariff on Chinese-made goods arriving in the US from as early as 1 February, adding that he was also considering levies on imports from the EU.

Ordering an investigation into US-China trade on his second day in office, Trump said any penalties on Chinese goods would be “based on the fact that they’re sending fentanyl to Mexico and Canada”.

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