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The European Union’s decision to block public funding for solar projects using Chinese-made inverters has sparked concerns that renewable energy growth could slow across the bloc. Officials argue the move is necessary to reduce security risks, warning that internet-connected inverters could potentially be used by foreign actors to disrupt power grids. The restriction is expected to affect more than 20% of new annual solar installations, forcing developers to seek alternative suppliers.

Chinese companies such as Huawei and Sungrow have dominated Europe’s inverter market, supplying around 70% of the region’s needs in recent years. Industry groups and solar developers warn that replacing Chinese equipment could raise costs, delay projects, and make it harder for some countries to meet renewable energy targets. Price-sensitive markets in Central and Eastern Europe are expected to face the greatest challenges, particularly where public subsidies play a major role in solar investments.

European manufacturers say they can increase production to fill the gap, with companies in Germany and Austria claiming they could meet demand within a year if investment conditions improve. However, some analysts remain skeptical, arguing that a rapid shift away from Chinese technology could slow the energy transition in the short term. Several EU countries are already considering tougher restrictions, while Brussels continues assessing whether broader bans on high-risk suppliers may be necessary in the future.

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France is preparing to host the G7 Summit in Evian-les-Bains from June 15–17, with the conflicts in Iran and Ukraine expected to dominate discussions. French President Emmanuel Macron has crafted a carefully balanced agenda aimed at maintaining unity among G7 leaders and avoiding tensions with U.S. President Donald Trump. Leaders from Gulf nations, including Saudi Arabia, the UAE, Qatar, and Egypt, have also been invited due to their involvement in regional security and mediation efforts.

A key focus will be the fragile U.S.-Iran ceasefire and ongoing diplomatic efforts to prevent further escalation in the Middle East. Diplomats believe the atmosphere of the summit could depend heavily on whether Washington secures progress with Tehran before the meeting. At the same time, Ukrainian President Volodymyr Zelenskiy is expected to push for stronger Western support as negotiations with Russia remain stalled and Ukraine intensifies drone attacks on Russian military and energy targets.

Beyond security concerns, G7 leaders will discuss economic challenges such as critical mineral supply chains, global trade imbalances, and reducing dependence on China. France has also encouraged broader discussions involving countries such as India, Brazil, Kenya, and South Korea. Rather than issuing a broad final communiqué, the summit is expected to produce targeted agreements on issues including critical minerals, migration, and international security cooperation.

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The United States, United Kingdom, and Australia have announced a joint programme to develop advanced unmanned undersea vehicles (UUVs) under the AUKUS security partnership, with deliveries expected to begin in 2027. The announcement was made during a defence ministers’ meeting in Singapore, where officials highlighted the project as a major step in strengthening maritime security and military cooperation.

According to a joint statement, the new undersea drones will enhance reconnaissance, surveillance, and strike capabilities while supporting anti-submarine warfare, mine countermeasures, electronic warfare, and operations in contested maritime environments. The initiative falls under AUKUS Pillar Two, which focuses on cutting-edge technologies such as artificial intelligence, cyber systems, quantum computing, hypersonics, and advanced undersea capabilities.

Defence leaders from all three nations said the programme will help protect critical underwater infrastructure, including communication cables and pipelines, while improving their ability to respond to emerging threats. Formed in 2021, AUKUS is widely seen as part of efforts to counter growing strategic challenges in the Indo-Pacific region. China has repeatedly criticised the pact, warning that it could increase regional tensions and fuel an arms race.

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Russia and China have jointly criticized U.S. President Donald Trump over plans for the proposed “Golden Dome” missile-defense system, warning that it threatens global strategic stability. The statement came during a meeting between Chinese President Xi Jinping and Russian President Vladimir Putin in Beijing. The project aims to expand missile interception capabilities through ground-based systems and space-based defense technologies designed to detect and potentially destroy incoming missile threats.

Moscow and Beijing argued that the proposed shield undermines the balance between offensive and defensive nuclear systems, which they say is essential for maintaining global security. The two countries also criticized Washington for allowing the 2010 New START nuclear arms treaty to expire without negotiating a replacement. Russia backed China’s stance against joining future U.S.-Russia nuclear arms control talks, while both nations accused the U.S. of pursuing destabilizing military strategies.

The joint statement also warned against the deployment of intermediate-range missiles and the use of preventive missile strikes aimed at disabling enemy forces before conflict begins. Adding to tensions, Russia released footage of military exercises involving the movement and deployment of nuclear warheads for Iskander-M missile systems across Russia and Belarus. The developments highlight growing geopolitical strains between major global powers over missile defense and nuclear security.

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Canada is expanding its Arctic defense cooperation with Nordic countries as concerns grow over regional security and comments by U.S. President Donald Trump about Greenland and Canada. Canadian officials and Nordic allies are increasing military coordination, intelligence sharing and Arctic preparedness amid rising tensions linked to Russia and growing Chinese activity in the region.

Prime Minister Mark Carney has strengthened partnerships with Denmark, Norway, Sweden, Finland and Iceland as part of a broader strategy to reduce dependence on the United States for Arctic security. In March, Canada and the Nordic nations agreed to deepen cooperation in defense production, military procurement and cybersecurity. Discussions are also underway to help Greenland develop a local force modeled after Canada’s Rangers.

The renewed focus on Arctic alliances comes as climate change makes the region more accessible and strategically important. Experts say Russia maintains the strongest military presence in the Arctic, while China is increasing its involvement through partnerships and infrastructure projects. Despite Canada’s push for stronger Nordic ties, analysts note that cooperation with the United States through NORAD remains essential for large-scale Arctic defense operations.

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China has announced a ban on exports of dual-use items to seven European entities, accusing them of involvement in arms sales to Taiwan. The affected companies include Germany’s Hensoldt AG, Belgium’s FN Browning, and several Czech defence firms, with Beijing placing them on its export control list. China said the move targets organisations that “colluded with Taiwan,” which it considers part of its territory.

The restrictions apply to goods, software, and technologies with both civilian and military uses, such as components used in drones and semiconductors. Beijing stated that all related transfers must stop immediately, though it may grant case-by-case approvals in exceptional situations. China also said it had informed the European Union through its export control dialogue mechanism before announcing the measures.

European and Czech officials have sought clarification, with some companies saying they do not expect major business impacts. The Czech government has instructed its embassy in Beijing to seek explanations, while firms like Excalibur Army said they do not directly rely on Chinese dual-use imports. The move comes amid growing geopolitical tensions over Taiwan, which China claims as its own but which Taiwan’s government rejects.

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A bureaucratic mishap in Italy has highlighted deeper issues hampering cooperation with China in tackling organized crime. Documents sent by Chinese authorities in response to an Italian legal assistance request were mistakenly rejected by Italy’s Justice Ministry after staff refused to pay a delivery charge, unaware of their importance. The error forced Rome to request the materials again, but they have yet to be resent, delaying progress in a case tied to an attempted murder involving Chinese nationals.

Italian prosecutors say such setbacks are worsening an already fragile relationship with Beijing, limiting efforts to combat Chinese criminal networks operating across Italy. Investigations over the past decade have uncovered activities ranging from money laundering and illegal immigration to drug trafficking and labor exploitation, yet few cases have reached court. Authorities argue that cooperation from China is essential, as many of these networks operate transnationally, but internal disagreements and political caution in Italy have slowed engagement.

Despite initial signs of collaboration—including outreach from Chinese officials and meetings in the city of Prato—progress has stalled due to concerns over jurisdiction, security risks, and cybersecurity threats. Italian officials remain wary of deeper ties, especially following alleged cyberattacks linked to China. While some see cooperation as a critical opportunity to curb organized crime, divisions within Italy’s legal and political system continue to hinder a unified approach.

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Pedro Sanchez and Xi Jinping met in Beijing to reinforce bilateral relations, emphasizing the need for stronger cooperation as the global order faces increasing instability. During the talks, Xi described the international system as “crumbling,” while Sanchez stressed that closer ties between Spain and China are essential to safeguard multilateralism.

Sanchez’s visit reflects a broader trend of Western leaders engaging with China despite ongoing geopolitical and trade tensions, particularly with the United States. Spain has positioned itself as a proponent of deeper economic collaboration with Beijing, advocating for China to play a more active role in global challenges such as climate change, security, and inequality.

During the visit, both sides agreed on measures to reduce Spain’s trade deficit and expand cooperation in agriculture, transport, and infrastructure. Sanchez also highlighted global conflicts, including situations in the Middle East and Ukraine, while reiterating Spain’s stance on upholding international law and diplomatic engagement.

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The United States has launched a new investigation into several major trading partners, including China, European Union and India, following a court ruling that struck down part of former tariff policies introduced by Donald Trump. The probe, announced by US Trade Representative Jamieson Greer, will examine alleged unfair trade practices and could lead to new import taxes on goods from the targeted countries. Officials said the investigation could be completed by summer.

The inquiry is being carried out under Section 301 of US trade law and covers a wide range of economies including Japan, South Korea, Mexico, Vietnam and Bangladesh. The administration argues the move is necessary to protect American manufacturing from what it calls excess production and unfair competition from overseas markets. Notably, Canada, the second-largest US trading partner, was not included in the probe.

The investigation follows a ruling by the Supreme Court of the United States that found earlier global tariffs introduced in 2025 unlawful. After the decision, Trump imposed a temporary 10% tariff on imports worldwide and signalled it could rise to 15%. The probe also comes ahead of expected talks between US officials and representatives from China in Paris, which may pave the way for a meeting between Trump and Chinese President Xi Jinping later this month.

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The European Union is preparing to introduce stricter “Made in EU” requirements for automakers as part of a proposed Industrial Accelerator Act aimed at reviving domestic manufacturing. Under draft rules, electric vehicles would need at least 70% of their parts’ value — excluding the battery — produced within the bloc to qualify for subsidies, alongside minimum EU-based battery content. The move is designed to counter mounting pressure from cheaper Chinese electric vehicle imports and prevent further industrial decline.

However, the plan has exposed divisions within the EU. France has pushed for stronger protection of local suppliers, warning of further factory closures and job losses without firm local-content mandates. Germany, whose carmakers depend heavily on exports to China, fears that stricter rules could trigger retaliatory trade measures. Industry groups caution that global auto supply chains are deeply integrated, making compliance complex and raising the risk of disrupting production networks.

Non-EU countries such as Britain and Turkey, key manufacturing hubs for European brands, are lobbying to be included in the framework. Automakers warn that excluding these partners could weaken EU production itself, while including them may create loopholes for Chinese firms to benefit indirectly. With billions of euros in subsidies and thousands of jobs at stake, policymakers are walking a tightrope between strengthening European industry and avoiding backlash from global trading partners.

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