Chinese stocks have spent the last five years really testing the patience of even the most hardcore contrarians. Between the property sector struggles, the crackdown on tech platforms, and the constant friction over chip exports and tariffs, valuations have been pushed down across the board.
Tim Cook's decision to shift production to China was a radical move that transformed Apple into one of the world's most valuable companies. By leveraging China's manufacturing capabilities, Cook not only reduced costs but also increased efficiency, allowing Apple to scale operations rapidly. The partnership with Foxconn was particularly crucial, as it enabled the production of iconic products like the iPhone, marking a significant turning point in Apple's history.
The actual reason was intense pressure exerted by Chinese authorities, including economic coercion. Using coercive means to force a third country to change its sovereign decisions not only undermines aviation safety and violates relevant international norms and practices, it also constitutes a blatant interference in another country's internal affairs.
"The resumption of train services suggests that exchanges of people and goods are gradually returning to normal. It also appears to send a message to the international community that China and North Korea are strengthening ties amid the current global situation."
We have very specific concerns regarding our cooperation, which we want to improve and make fair, said Merz, in an acknowledgement of the strain faced by Germany's manufacturing sector from Chinese competition.
Friedrich Merz said he saw a "great opportunity" for the industrial exporters, while Xi Jinping called for "enhanced strategic cooperation." China has been courting Western leaders amid Trump's trade tensions. It's Merz's first trip to China since he became chancellor, his predecessor Olaf Scholz visited in 2024.
What we'll see is the trade-off between whether it's going to be industry and tech, or looking after domestic demand. These are the two priorities that are juggling for Xi Jinping right now.
About 1.4 billion people began marking the Lunar New Year on Tuesday amid fireworks as China enters the Year of the Fire Horse, one of 12 animals in the Chinese zodiac. Known as the Spring Festival in China, the new year, based on the lunar calendar, also brings about the world's largest annual human migration, called Chunyun, as millions travel across the country for family reunions.
China's official discourse centres on the idea of peaceful rise, the commitment to non-interference in internal affairs, respect for sovereignty and territorial integrity, and economic partnerships based on mutual benefit. Beijing insists that relations with Washington should not slide into conflict, calling for a system of global governance built on cooperation rather than confrontation. Yet the geopolitical landscape reveals a wide gap between this discourse and reality. Donald Trump's return to the White House has brought back rhetorical escalation and increased geopolitical pressure.