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    Trump’s Trade and Tax Policies Start to Stall U.S. Battery Boom

    Battery companies are slowing construction or reconsidering big investments in the United States because of tariffs on China and the proposed rollback of tax credits.Battery manufacturing began to take off in the United States in recent years after Congress and the Biden administration offered the industry generous incentives.But that boom now appears to be stalling as the Trump administration and Republican lawmakers try to restrict China’s access to the American market.From South Carolina to Washington State, companies are slowing construction or reconsidering big investments in factories for producing rechargeable batteries and the ingredients needed to make them.A big reason for that is higher trade barriers between the United States and China are fracturing relationships between suppliers and customers in the two countries. At the same time, Republicans are seeking to block battery makers with ties to China, as well as those that rely on any Chinese technology or materials, from taking advantage of federal tax credits. The industry is also dealing with a softening market for electric vehicles, which Republicans and Mr. Trump have targeted. The China-related restrictions — included in the version of Mr. Trump’s domestic policy bill passed by the House — would be very difficult for many companies to operate under. China is the world’s top battery manufacturer and makes nearly all of certain components.The Trump policy bill highlights a difficult dilemma. The United States wants to create a homegrown battery industry and greatly reduce its dependence on China — and many Republican lawmakers want to end it altogether. But China is already so dominant in this industry that it will be incredibly hard for the United States to become a meaningful player without working with Chinese companies.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Oil Prices Surge and Stock Markets Stumble After Israel Strikes Iran

    The military strikes jolted investors, raising concerns that a broader Mideast conflict would disrupt the world’s energy supplies.Israel’s military strikes against Iran shook global markets, as oil prices surged and stocks tumbled on worries that the attacks could set off a broader Mideast conflict that would disrupt the world’s energy supplies.Prices of Brent crude oil, the international benchmark, jumped nearly 9 percent to almost $78 a barrel in the hour following the Israeli strikes. As investors worried that rising oil prices might lead to more inflation and hurt the economies of oil-importing nations, stock markets fell broadly.The Nikkei 225 Index in Japan fell 1.3 percent in early trading Friday, while the Hang Seng Index dipped 0.7 percent in Hong Kong. Wall Street was closed at the time of the attack, but overnight futures market trading indicated that they could also fall as much as the Tokyo market.Iran is among the world’s largest producers of oil, and it sells almost all of what it produces to China, which consumes 15 percent of the global supply. Sales by Iran’s state oil company to China represent about 6 percent of Iran’s entire economy, and are equal to about half of its entire government’s spending.Iran’s exports have lagged in recent years as international sanctions have limited its ability to modernize its oil extraction and transportation technology.But Iran’s shipments have begun to recover in the past year on strong demand from China, which would be forced buy oil elsewhere if a broader conflict were to interrupt Iranian supplies. Beijing does have a large strategic oil reserve, accumulated through more than a decade of purchases and dispersed among numerous sites across the country. That could allow it to withstand weeks of an interruption in imports without difficulty.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Pentagon Is Reviewing Deal to Equip Australia With Nuclear Submarines

    The 2021 pact, meant to help counter China’s ambitions in the Asia Pacific, will be examined to ensure that it meets “America First criteria,” a U.S. official said.The Trump administration is reviewing whether a security pact between the United States, Britain and Australia meant to equip Australia with nuclear submarines is “aligned with the president’s America First agenda,” a U.S. defense official said on Wednesday.When the deal was reached under President Joseph R. Biden Jr.’s administration in 2021, it was billed as crucial for countering China’s growing military influence in the Asia Pacific. Now, its review appears to reinforce President Trump’s skeptical and transactional approach to longstanding alliances, including demands that allies spend more on their own defense.The Pentagon official said the review would ensure that the pact, known as Aukus, met “common-sense, America First criteria,” including ensuring that U.S. forces are at “the highest readiness,” that allies are doing their part, and that “the defense industrial base is meeting our needs.” The review was first reported by The Financial Times.Australia’s defense minister, Richard Marles, said both Australia and Britain had been notified about the review and that all three nations were still committed to the deal.“We’ve been aware of this for some time. We welcome it,” Mr. Marles said in a radio interview with ABC Melbourne on Thursday, Australia time. “It’s something which is perfectly natural for an incoming administration to do.”Australia sees the Aukus agreement as central to its defense strategy in the coming decades in a region increasingly shaped by China’s assertive military posturing. Nuclear submarines can travel much farther without detection than conventional ones can and would enable the Australian Navy to greatly extend its reach.Under the pact, Australia is scheduled to receive secondhand Virginia-class nuclear submarines from the United States in the 2030s while scaling up the capacity to build its own, using a British design. But there has been concern in both Washington and Canberra about whether the United States can build new submarines to replenish its fleet quickly enough for the older ones to be transferred to Australia.Elbridge Colby, the U.S. under secretary of defense for policy, said during his Senate confirmation hearing in March that he was skeptical about the pragmatic feasibility of the deal. The Financial Times reported that Mr. Colby was heading up the Pentagon review.“So if we can produce the attack submarines in sufficient number and sufficient speed, then great,” Mr. Colby said at the hearing. “But if we can’t, that becomes a very difficult problem.”Even before the review was announced, concern and anxiety had been building in Australia over whether it could continue to depend on its longstanding relationship with the United States, given the Trump administration’s treatment of allies.Mr. Marles, the Australian defense minister, said in the radio interview that he was confident the Aukus deal would proceed because “it’s in the interests of the United States to continue to work with Australia.”Michael D. Shear More

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    Trump trade deal shows how vital China’s rare-earth metals are to US defense firms

    The draft trade agreement with China announced by Donald Trump on Wednesday would ease concerns from top US military suppliers about rare-earth metals and magnets that, if cut off permanently, could hobble production of everything from smart bombs to fighter jets to submarines and other weapons in the US arsenal.While the deal has not yet been finalised, it may reassure major defense companies such as Lockheed Martin, the largest US user of samarium – a rare-earth metal used in military-grade magnets – whose supply is entirely controlled by China.The issue of China’s export restrictions on the metals and magnets was so important that Trump specifically mentioned them as part of his announcement of a broader trade agreement with China that would reduce US tariffs to 55% and Chinese tariffs to 10%.“Our deal with China is done, subject to final approval with President Xi and me,” Trump wrote. “Full magnets, and any necessary rare earths, will be supplied, up front, by China.”Rare earths are crucial to the production of F-35 fighter jets, Virginia- and Columbia-class nuclear-powered submarines, Tomahawk missiles, radar systems, unmanned aerial vehicles and smart bombs, according to Gracelin Baskaran of the Center for Strategic and International Studies, a thinktank.China in April imposed export restrictions on seven rare earth elements during the tough negotiations over Trump’s new tariffs. China also targeted the aerospace and defense industries by limiting 15 US entities with ties to the industry from receiving dual-use goods.“The United States is already on the back foot when it comes to manufacturing these defense technologies,” Baskaran said in an interview published by CSIS. “China is rapidly expanding its munitions production and acquiring advanced weapons systems and equipment at a pace five to six times faster than the United States. While China is preparing with a wartime mindset, the United States continues to operate under peacetime conditions.”Trump has amassed a team of foreign policy China hawks, including a number who have warned that the US should focus more on the pacing threat posed by China over the coming decades instead of current conflicts in Ukraine or the Middle East.“Even before the latest restrictions, the US defense industrial base struggled with limited capacity and lacked the ability to scale up production to meet defense technology demands,” she continued. “Further bans on critical minerals inputs will only widen the gap, enabling China to strengthen its military capabilities more quickly than the United States.”China and the US had agreed last month in Geneva to pause the implementation of sky-high tariffs that would have delivered a severe economic blow to manufacturers and consumers in the US, as well as exporters in China.But China maintained export licenses on rare-earth metals used by both defense producers and carmakers that threatened to upend global supply chains and imperil production in the US.In particular, China has a stranglehold on the production and export of samarium, a magnet used in combination with cobalt to provide highly durable magnets used to withstand the intense temperatures in military-grade tech. China produces the entire world’s supply of the rare-earth metal.skip past newsletter promotionafter newsletter promotionIn particular, the magnets are important for the production of guided missiles, satellite-guided “smart bombs”, and aircrafts, including fighter jets, according to Apex Magnets, a supplier.Those supplies of weapons have been depleted through deliveries of missiles and other ordnance to Ukraine and to the Israeli military. Pentagon planners and other officials in the administration of Joe Biden, regularly squared off over whether foreign weapons deliveries expose a US vulnerability in case it faced off with a major military power.In order to break the deadlock, secretary of state Marco Rubio also abruptly announced plans to cancel hundreds of thousands of visas for Chinese students in the US. While publicly that was said as a plan to root out Chinese spies in US higher education, Axios reported that the visa ban was also motivated by China’s obstinance on resuming rare earths exports.The breakthrough comes as Trump is planning to display US military prowess at a parade in Washington DC this weekend that has been seen as an attempt to flex American muscle and reinforce the US president’s bonafides as a supporter of the military.Trump in 2019 ordered the Pentagon to find new sources of procuring rare earth minerals, in particular samarium, because the US did not have the capacity to produce them domestically. The initiative was “essential to the national defense”, he said then. More

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    Two Are Charged With Stalking an Artist Who Criticized Xi Jinping

    The two men also unsuccessfully tried to illegally export sensitive U.S. military technology to China, prosecutors said.Two men have been charged with plotting to silence a Los Angeles artist critical of the Chinese government and trying to illegally export sensitive U.S. military technology to China, according to federal prosecutors.The defendants, Cui Guanghai, 43, of China, and John Miller, 63, a British national who is a permanent U.S. resident, orchestrated a harassment campaign against a U.S.-based dissident artist whom the authorities did not name, according to the U.S. Attorney’s Office for the Central District of California. The two men also tried to smuggle restricted technology into China, the office said.The target of the harassment plot, the authorities say, was a Los Angeles-based artist who had publicly criticized President Xi Jinping of China. The artist planned to protest against President Xi during the Asia Pacific Economic Cooperation summit in November 2023 in San Francisco. The artist had also created sculptures of President Xi and his wife that, according to a federal complaint, depicted them kneeling, bare-chested, with their hands tied behind their backs.Mr. Cui and Mr. Miller, who unknowingly hired two F.B.I. agents working undercover, arranged to place a tracking device on the artist’s car and have its tires slashed, prosecutors said in court documents. The two also planned to destroy the artist’s sculptures, though they were unsuccessful, the authorities said.Mr. Cui and Mr. Miller are currently in custody in Serbia, according to federal prosecutors. It is unclear whether either man has legal representation.“The United States will seek extradition of Cui and Miller and looks forward to working in partnership with the Republic of Serbia’s Prosecutor’s Office and the Ministry of Justice,” prosecutors said in a statement.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Ancient Trees, Dwindling in the Wild, Thrive on Sacred Ground

    The Putuo hornbeam, a hardy tree that thrives in the damp air by the East China Sea, could be easily overlooked by visitors to the Huiji Temple on an island in the Zhejiang Province.The tree has an unremarkable appearance: spotty bark, small stature and serrated leaves with veins as neatly spaced as notebook lines. But its status is singular. As far as conservationists can tell, no other mature specimen of its species is alive in the wild.The holdout on the island, Mount Putuo, has been there for about two centuries. And according to a study published Wednesday in the journal Current Biology, its setting may have been its salvation.The study found that religious sites in eastern China have become refuges for old, ancient and endangered trees. Since the early years of the Common Era, Buddhist and Taoist temples have sheltered plants that otherwise struggled to find a foothold, including at least eight species that now exist nowhere else on earth.“This form of biodiversity conservation, rooted in cultural and traditional practices, has proven to be remarkably resilient, persisting even in the face of modern civilization and rapid economic development,” said Zhiyao Tang, a professor of ecology at Peking University and one of the study’s authors.The trees survived at religious sites in part because they were planted and cultivated there. The report noted that Buddhism and Taoism emphasize spiritual association with plants and the temples tended to be left undisturbed, shielding the areas from deforestation.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    What to Know About China’s Halt of Rare Earth Exports

    Since early April, China has stopped almost all shipments of critical minerals that are needed for cars, robots, wind turbines, jet fighters and other technologies.China has suspended almost all exports since April 4 of seven kinds of rare earth metals, as well as very powerful magnets made from three of them. The halt has caused increasingly severe shortages that threaten to close many factories in the United States and Europe.Why are these metals so needed, why has China stopped exporting them and, crucially, what happens next?What are rare earths?There are 17 types of metals known as rare earths, which are found near the bottom of the periodic table. Most of them are not actually very rare — they are all over the world, though seldom in large enough ore deposits to be mined efficiently.They are called rare because it is very difficult to separate them from each other. Breaking the chemical bonds that bind them in nature can require more than 100 stages of processing and large quantities of powerful acids.A close-up of a gram of terbium.Romain Rabier/Hans Lucas, via ReutersWhy does China control so much of the rare earth supply?China mines 70 percent of the world’s rare earths. Myanmar, Australia and the United States mine most of the rest. But China does the chemical processing for 90 percent of the world’s rare earths because it refines all of its own ore and also practically all of Myanmar’s and nearly half of U.S. production.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Chinese Students Rattled by Trump Plan to ‘Aggressively’ Revoke Visas

    Students said the latest move had upended their plans and intensified their fears.It had been all figured out, Cici Wang said. Summer at home in China, then back to get her master’s degree in Chicago. After that, if she was lucky, a job in the United States.Now all of that is up in the air, she said, a potential casualty of a crackdown that has upended the future for more than 277,000 Chinese nationals studying in this country.“Hopefully, I’ll be fine,” said Ms. Wang, a 22-year-old aspiring computer scientist, sitting with her parents in the stately main quad of the University of Chicago on Thursday. “But I’m not sure.”Across the country, Chinese students reeled Thursday from Secretary of State Marco Rubio’s announcement that the Trump administration would begin “aggressively” revoking visas for Chinese students studying in the United States. More than two dozen students studying in the United States, most of whom did not want their names published for fear of retaliation, told The New York Times that they worried they could lose their academic opportunities in an instant, with little explanation.In a statement late Wednesday, the State Department announced it was focusing on those who were studying in “critical fields” or who had ties to the Chinese Communist Party and was revising visa criteria to “enhance scrutiny” of all future applications from China, including Hong Kong.The vague parameters had a chilling effect on Thursday as students wondered how broadly the Trump administration would apply its new criteria. Mr. Rubio did not define “critical fields,” but science students felt particularly vulnerable because American officials have expressed concerns about the recruiting of U.S.-trained scientists by China. Nor was it clear how American officials would determine which students had ties to the Communist Party.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More