What you need to know

Visa restrictions escalate U.S.-China tensions as talks stall

Under the direction of President Donald Trump, the U.S. Department of State, in coordination with the Department of Homeland Security, is preparing to revoke visas for Chinese students, particularly those affiliated with the Chinese Communist Party or studying in sensitive sectors. The administration will also tighten eligibility criteria for future visa applicants from both the People’s Republic of China and Hong Kong.

In a speech, U.S. Secretary of State Marco Rubio declared that the government would “aggressively revoke visas for Chinese students,” especially those linked to the Chinese Communist Party or working in strategically important academic fields.

The implications are profound. More than 270,000 Chinese students were enrolled in U.S. institutions in 2024, with pre-pandemic numbers even higher. While many come from the political and business elite, a substantial proportion hail from China’s expanding middle class.

This move, paired with newly imposed export restrictions, threatens to unravel a fragile truce in the trade dispute between Washington and Beijing.

Chinese technology firms and students were also targeted by U.S. actions, sending shockwaves through policy circles in both capitals.

Until recently, Chinese officials had expressed optimism. A tentative agreement to reduce tariffs had been hailed in state media as a triumph for Chinese diplomacy. Production resumed in shuttered factories, and shipping traffic out of Chinese ports began to normalize. High-level officials adopted a conciliatory tone, suggesting that the world’s two largest economies might return to a more cooperative footing.

The U.S. government’s actions are likely to provoke both public and official ire in China. They also cast doubt on the viability of continued trade negotiations. The current trade ceasefire is due to expire in 90 days, and no long-term solution is yet in sight.

Industry sources indicated this week that the U.S. government has ordered American firms to restrict Chinese access to software used for designing semiconductors.

These semiconductors are embedded in nearly every modern device, from smartphones and vehicles to home appliances. They have become the focal point of the escalating technology war between the U.S. and China. The Biden administration previously barred China from acquiring certain U.S.-made chips and Washington has more recently warned against the use of artificial intelligence hardware produced by Huawei, a major Chinese technology firm.

The clampdown has deeply frustrated Beijing, which has invested tens of billions of dollars into developing a domestic semiconductor industry to reduce reliance on foreign suppliers.

Trade negotiations stalling: Meanwhile, U.S. Treasury Secretary Scott Bessent said on Thursday that President Donald Trump and Chinese President Xi Jinping may need to speak directly in order to resolve obstacles in the ongoing trade negotiations.

Bessent, who played a key role in securing a provisional agreement during a summit in Switzerland earlier this month, said the two economic giants had committed to suspending tariff hikes for 90 days as part of the détente.

Officials in Beijing expressed cautious approval after the U.S. Court of International Trade blocked a number of President Donald Trump’s most far-reaching tariffs. However, a federal appeals court temporarily stayed that decision yesterday.

Birth pangs in the birthplace of civilization

Gaza ceasefire proposal rejected by Hamas

Hamas on Thursday rejected a ceasefire proposal brokered by White House envoy Steve Witkoff and endorsed by Israel.

Hamas appears to have rejected the latest U.S. initiative, which seeks to establish a new ceasefire in Gaza and secure the release of hostages. The White House announced that Israel had agreed to Witkoff’s plan.

According to Israeli media reports citing government officials, the proposal would see Hamas release ten living hostages and the remains of eighteen others in two phases. In return, Israel would suspend hostilities for 60 days and release Palestinian detainees from its prisons.

Hamas said the plan failed to meet key demands, notably a permanent end to the conflict.

Israel imposed a full blockade on Gaza and resumed military operations against Hamas on 18 March, ending a two-month truce brokered by the U.S., Qatar and Egypt. Israeli officials stated that the move was intended to increase pressure on Hamas to release the 58 hostages still believed to be held, at least 20 of whom are thought to be alive.

On 19 May, the Israeli military launched a broader offensive, with Netanyahu declaring that troops would take control of Gaza (from which it withdrew in 2005). The following day, he said that Israel would ease the blockade slightly to allow a basic supply of food into the enclave to stave off famine.

On Thursday, the Israel Defense Forces issued one of the largest evacuation orders since the start of the war, urging residents in the north and east of Gaza to relocate westwards ahead of an expansion of the ground campaign.

Israel advances settlement expansion in the West Bank

Israel this week approved a sweeping expansion of Jewish settlements in the occupied West Bank, a move widely seen as entrenching the de facto annexation of the territory.

The decision marks the largest settlement expansion since the signing of the Oslo Accords over three decades ago.

Under a resolution adopted by the security cabinet, Israel will establish 22 new settlements, including several deep inside the West Bank and in areas from which it had previously withdrawn. The announcement came in a joint statement by Defense Minister Israel Katz and Finance Minister Bezalel Smotrich.

Twelve of the new settlements will consist of the retroactive legalization of unauthorized outposts. Another nine will be entirely new developments. The final settlement involves designating an existing neighborhood as a separate, independent settlement.

For several months, Israel's military has conducted an extensive operation across the West Bank, deploying tanks in the territory for the first time in decades and displacing tens of thousands of Palestinians.

U.S. flag raised in Damascus & deal signed to develop electricity infrastructure

The American flag was raised outside the long-shuttered residence of the U.S. ambassador in Damascus on Thursday, signaling a shift in relations between Washington and Syria’s new government.

Tom Barrack, the U.S. ambassador to Türkiye and newly appointed special envoy to Syria, arrived in the Syrian capital to inaugurate the premises.

During Barrack’s visit, he met with Syrian President Ahmad al-Sharaa and attended the signing of an agreement involving Qatari, Turkish and U.S. firms to develop a 5,000-megawatt energy project aimed at rebuilding Syria’s war-ravaged electricity infrastructure.

The agreement, finalized on Thursday, involves a consortium led by Qatar’s UCC Concession Investments, along with Power International USA and Türkiye’s Kalyon GES Enerji Yatirimlari and Cengiz Enerji. The firms will construct four combined-cycle gas turbines with an estimated total capacity of 4,000 megawatts, alongside a 1,000-megawatt solar power facility.

In a statement, UCC said the completed projects are expected to supply more than half of Syria’s electricity demand.

While the U.S. embassy in Damascus remains closed (it was closed in 2012 amid mass protests against the government of Bashar al-Assad) Barrack’s visit and the symbolic flag-raising marked a notable step toward diplomatic normalization. Assad was deposed in December following a swift rebel offensive.

It's now the US vs China, everyone else needs to pick a side

Shangri-La Dialogue Opens in Singapore

French President Emmanuel Macron and U.S. Defense Secretary Pete Hegseth are attending the Shangri-La Dialogue security forum in Singapore, focusing on regional security challenges including China's rising assertiveness, the effects of Russia's war in Ukraine, and conflicts in Asia.

Macron is delivering the keynote address, expected to emphasize cooperation in the Indo-Pacific and the global stakes of the Ukrainian conflict.

Hegseth, attending the forum for the first time, reaffirmed U.S. commitment to deterring Chinese aggression toward Taiwan amidst escalating tensions and proposed tariffs. China's lower-level representation this year highlights increasing strains between Washington and Beijing.

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