G7 Summit Eyes Supply Chain Resilience; US Agencies Ban Chinese-Origin Goods | China in Focus

Welcome to China In Focus. I'm Tiffany Meyer. Our top story, a peace deal between the United States and Iran. President Trump announced it over the weekend. What decisions will China make following the major change? President Trump arriving in France for the G7 summit after striking a peace deal with Iran. Among the issues topping the agenda is the threat posed by a surge of low-cost Chinese exports. But how likely are the U.S. and its allies to reach a consensus on how to respond? Chinese products kicked out of U.S. federal agencies. U.S. authorities discovered 22 Chinese manufacturers falsely labeled their goods as made in America and removed them from federal agency procurement lists. And from the U.K. and Italy to France, Japan's prime minister is forging a new partnership linking Europe and the Indo-Pacific, strengthening security ties in President Trump says a peace deal between the United States and Iran has been reached. In a post on Truth Social on Sunday, the president announcing what he called the toll-free opening of the street of Hormuz and the immediate removal of the U.S. naval blockade. He wrote, ships of the world, start your engines, let the oil flow. The deal was first announced by the Pakistani prime minister. Iran has signaled it may delay implementing parts of the agreement until the formal signing takes place. The agreement also sets a 60-day framework to address Iran's nuclear program, including its highly enriched uranium stockpile. Vice President J.D. Vance reacting on Fox News, calling it a big moment for America. He highlighted three major achievements and what they mean for Americans. First, the street of Hormuz will be immediately reopened. And second, Iran will never be allowed to have a nuclear weapon. Third thing is, and this only happens, to be clear, if Iran delivers on their promise. And so there's an approach here where we verify and where there are real benefits so long as Iran meets their end of the obligation. But if the Iranians comply with this deal, it is going to fundamentally transform the Middle East for the next 50 years. It's going to end the war. It's going to make the Middle East more investable. It's going to mean a lot of prosperity, lower energy prices for the American people. Vance says the U.S. won't pay Iran in exchange for signing the deal. Vance confirms he will attend the signing ceremony this Friday in Switzerland. He says it's possible President Trump himself will be there as well. Former Secretary Pete Haig says military pressure, not diplomacy alone, forced Tehran to negotiate. He says any deal will permanently block Iran from obtaining a nuclear weapon. Iran will never have a nuclear weapon. Never. Full stop. And we're going to verify everything. Nuclear material will be destroyed and removed. The nuclear program will be dismantled. The JCPOA was a path to a bomb. What this deal will be will be a wall to a bomb. When asked if U.S. troops could be involved in securing nuclear materials, his response was all options are on the table. And regarding China during the conflict in the Middle East over the past several months, China reduced its oil imports. Nobody really understood why. It remains to be seen whether China will resume its imports after the deal is signed. If it does, experts expect inflationary pressures to rise. President Trump attending the G7 summit in France, a gathering of seven major advanced democracies. The summit started on Monday and will last until Wednesday. What are the main goals? NTD's White House correspondent Mario Ciu is on the ground in Geneva. President Trump in Evian at the G7 summit is expected to have several working meetings with the G7 leaders, a U.S. official telling NTD that some of the goals of those meetings are to, quote, boost critical mineral chain supply resilience and to strengthen responses to illegal immigration and drug smuggling. And it is noted that President Trump is expected to have bilateral meetings with the leaders of France, Qatar, the UAE, Egypt and India. And on Wednesday night, he's expected to have a dinner with French President Emmanuel Macron at the Palace of Versailles. So a lot to look out for here and we'll keep you updated on the ground throughout the week. Alongside the Ukraine war and the Middle East, how to deal with the surge in Chinese exports is also topping the G7's agenda. French President Emmanuel Macron has carved out time for leaders to discuss how to balance trade with China. This comes as a flood of Chinese exports are pushing some industries in Europe to the brink. Chinese exports are cheap because they're backed by state subsidies, making it very hard for Western counterparts to compete. And now there are fears that Chinese exports could harm certain industries in Europe, including steel, batteries and electric vehicles. Following U.S. tariffs on China, many Chinese exporters redirected their goods to Europe, worsening the situation. It's a situation Treasury Secretary Scott Besant had warned about. He said he had cautioned Western allies that without trade protections, a surge of Chinese exports would damage their economies. The impact is reflected in the EU's growing trade deficit with China, which reached nearly $400 billion last year. That marks an 18% increase from the year before. And international relations experts said the chemistry between President Trump and G7 leaders has recently been strained over the Iran war. But the China issue could help unify the group. However, it remains to be seen whether the European Union and the U.S. will move together to address the trade imbalance with China. The EU is hesitant to impose unilateral tariffs, fearing it would spark a trade war. Its 27 member states are also divided on how to deal with China. The union's largest economy, Germany, has been reluctant to impose tariffs on China, its biggest trading partner. Last week, Macron held a video conference call with several G7 leaders to discuss global imbalances. A Chinese premier was also included. French officials say this is Macron's last-ditch effort to pursue a cooperative approach before the EU decides whether to take a harder line on China. Over in the U.S., a senior Trump administration official said Saturday that Washington is not waiting for the world to reach a coordinated response to China's behavior. The official added that the U.S. is already taking action through a variety of measures. President Trump has invited Chinese leader Xi Jinping for a White House visit in September. Chinese manufacturers falsely claiming their products were made in America to evade U.S. tariffs. Now, 22 of them can no longer sell to U.S. federal agencies. The Trump administration barred federal agencies on Friday from purchasing their goods. The enforcement took place after a three-week probe stemming from an executive order issued by Trump requiring federal agencies to aggressively target fraudulent made-in-America claims. The probe into these Chinese manufacturers was triggered after New York-based Shell Manufacturing raised concerns about certain competitors. The company said China-based firms were falsely claiming domestic origin on a government procurement platform. It also said those products were only partially assembled in the United States and cannot be called made in America. Shell Manufacturing is the only remaining manufacturer of 100 percent American-made stainless steel flatware. Taiwan is taking a page from Western intelligence agencies. The island nation is launching a new website aimed at gathering information from Chinese nationals unhappy with life under Beijing's leadership. Taiwan's National Security Bureau says the online platform allows Chinese citizens to share information about political, military, economic and social developments inside China. The agency says several people unhappy with Chinese leader Xi Jinping's regime have already made contact through the site. Taiwanese officials point to Beijing's slowing economy, strict political controls and growing social pressures as factors contributing to public frustration. The website also features an AI-generated video depicting a Chinese regime employee watching as colleagues are suddenly investigated and removed from their jobs. Taiwan says the video highlights fear and uncertainty among people living in China. The effort mirrors a recent campaign by the CIA which released videos encouraging unhappy Beijing officials to provide information to Washington. The move comes as tensions remain high between China and Taiwan, but the Chinese regime is still claiming the self-governed island as its territory despite never having ruled it. Japan's Prime Minister Sanae Takahichi is making her first major trip to Europe since taking office. She's meeting with leaders in Britain and Italy before joining G7 talks in France. The visit comes as Tokyo seeks closer security ties with Europe and may grow in concerns about China's military build-up, tensions in the Taiwan Strait and the security of critical global shipping routes. Takahichi's main goal is to build a new democratic shield that connects Euro-Atlantic and Indo-Pacific security. It's a direct and more assertive response to China's growing strategic challenges. On Sunday, Takahichi met with British Prime Minister Keir Starmer in London. In a joint statement issued after the talks, the two leaders expressed serious concern over China's expert controls on critical minerals and what they described as economic coercion. Takahichi said relations between Japan and the UK have now reached what she calls a quasi-alliance level. The next day, Takahichi held talks with the Italian Prime Minister Giorgia Maloney in Rome. The two countries agreed to strengthen supply chain resilience in key sectors, including semiconductors, critical minerals and advanced technologies. The leaders also reaffirmed support for the Global Combat Air Program, or GCAP, a joint next-generation fighter jet project involving Japan, Britain and Italy. Takahichi pledged to keep pushing cooperation under the program, which is widely seen as a major symbol of security ties between Europe and the Indo-Pacific. Analysts view it as a long-term response to China's growing military capabilities. Ahead of her arrival, Takahichi laid out her strategic vision in an opinion piece for the Financial Times. She said, quote, the Indo-Pacific region, which accounts for approximately 50 percent of global GDP, holds the key to the world's future peace and stability. The UK and Europe demonstrated their commitment to this region at an early stage, while the U.S. places priority on it in its Japan also strongly reiterates its belief that we must actively contribute to the stability of the Indo-Pacific and fulfill our own responsibilities there. According to analysis by Taiwan's Institute for National Defense and Security Research, deeper defense-industrial cooperation between Japan, Britain and Italy could have a positive stabilizing effect on security in the Taiwan Strait and along the southwest island chain. The G7 leaders met shortly after the U.S. and Iran said they had reached a preliminary deal to end their war. Discussing next steps on Iran will be one of several issues. They will also see common ground on sourcing critical minerals outside of the dominant supplier, China. Japan's Prime Minister, Sanae Takahichi, is driving home a single powerful message. The security of the Euro-Atlantic and the Indo-Pacific are absolutely indivisible. And coming up, a major move in the Indo-Pacific amid China's threats. The U.S. is reactivating a nuclear-powered submarine support squadron in Australia. And President Trump heads to France for a three-day summit with leaders of the world's seven largest advanced democracies. We have analysis more on that after the break here on China In Focus. Welcome back to China In Focus. I'm Tiffany Meyer. The U.S. is reactivating a nuclear-powered submarine support squadron in Australia. The move marks a major step in a partnership to boost allied military presence across the Indo-Pacific and deter Chinese aggression. It comes under the AUKUS agreement between the U.S., Australia and the U.K. The reactivated unit will help prepare for the arrival of U.S. and British nuclear-powered attack submarines at Australia's HMAS Stirling Naval Base starting next year. It brings U.S. personnel together with the Royal Australian Navy. And it builds the maintenance, logistics and support systems needed for submarine rotations. The goal is to keep allied submarines closer to potential hot spots, improving response times amid and Chinese deterrence across the Indo-Pacific. The squadron previously operated from Hawaii before being deactivated in 2012. It is now returning to support Australia's future submarine fleet. U.S. officials say hundreds of Australian sailors, divers and maintenance workers are already in training to support nuclear-powered submarines. The expansion of HMAS Stirling reflects a broader shift as AUKUS moves from planning into operations and long-term military cooperation. After announcing the reaching of a peace deal in the Middle East, President Trump set off for France, attending the G7 meeting in France to discuss entity Stefania Cox, which was joined by Captain James Finnell, former Director of Intelligence and Information Operations for the U.S. Pacific Fleet. Great to have you with us today, Captain. We'll get to the G7 meeting, but first, your reaction to the latest Iran peace deal. Well, Stephanie, thanks for having me on. I think this expected signing of this MOU on Friday is something that everyone is looking for and hoping will work. But as I think the Secretary conditions over the next five days, as we get closer to the signing, there's going to be continued negotiation, continued focus on the details and the timing. But it'll become readily apparent whether or not Iran is complying with the agreement in the very first few days of this, if they start to allow ships to go out of the Strait of Hormuz without being told, without having to pay a toll to the Iranian regime. If that happens, I think the U.S. side will be much more inclined to start lifting maybe some of this sanctioned money. So as I think it was stated several times by the administration, this is a performance-based agreement. Iran may not characterize it that way. It's certainly not the way they're characterizing it in Iranian state media. But I think that is the fundamental difference between this potential agreement and the previous JCPOA, is that you're going to have performance-based measures that will be easily determinable. And the most obvious one is the hundreds of ships that are in the Gulf trying to get out, and also those ships trying to get in, and the resumption of normal flow of trade and oil through the Strait of Hormuz. And also, I think the discussions over what to do with Iran's nuclear program that was destroyed last June and the remnants of that, and how we can ensure verification, what are those protocols? So there'll be a lot to discuss about this agreement. And I think the president will be expecting G7 states to step up and contribute in ways that they didn't contribute in terms of military support during Operation Epic Fury. There's also been some talk of implementing sanctions relief among some of those leaders there. And in terms of delivering on the promises that are expected to be in this particular deal regarding nuclear capabilities, what would you recommend or what are you expecting to be sure of verifiable actions on Iran's part? Well, I think the big parts are the opening of the strait, and then the actual openness to allow inspectors and verification teams in to take care of and ensure, as the Secretary of War said, that there's a wall against Iran ever having a nuclear weapon. And as I think you've had people on this network, like my friend Colonel Grant Newsham, have said repeatedly, Iran has always had, in the 47 years that this regime has been in power, they have desired to have a nuclear weapon because it gives them a failsafe, it gets them what they consider to be a trump card against anybody trying to destroy the regime. So they desperately have wanted one. And now this agreement assumes, presumes, that they do not want to get and have nuclear weapons. So we'll be able to tell pretty quickly whether or not Iran is genuine in their agreement here with this MOA on Friday. In a 60-day period, which is being reported, there'll be discussions and talk and movement towards how are we going to verify this over the next 60 days. And if that stalls, then everything will go back to the compelling phase, as the Secretary of War said. All right. Now looking more closely at the G7, it is, of course, a time of great change, it appears, in many arenas. We've got quite a few, Ukraine, trade as well. What are the top things that you're watching at this G7 summit? Well, I think there's been a natural, you know, since this whole event against Iran and the previous efforts by President Trump and his first administration and the second administration to bring the European Union and NATO into, you know, more contribution to the collective security of these nations. I think there's going to be discussion about that. We heard the Canadian Prime Minister make a speech, I think, Sunday, gave some talks on Sunday that said, you know, he was basically saying the United States can't be an outlier. Well, I think President Trump's going to be reframing that for the Prime Minister of Canada and the others, which is to say, we're not the outlier. Your unwillingness to cooperate on threats like Iran or the energy situation and economic fair trade and things of that nature, I think that's where the discussion is going to be. And then also, as you noted, there's a big problem still left in the continent of Europe, in the Ukraine. And, you know, even last night, the Russians attacked the capital and destroyed a very ancient monastery or a cathedral, and nine people were killed. So the war is continuing in the Ukraine, and that has to be addressed as well. So I would expect that's going to consume a lot of their attention as well. One other thing that we should discuss is that Prime Minister Takeichi is making a recommendation at the G7 to talk about how to deal with China's potential lock control over rare earth elements and oil, or not oil, but other things pharmaceutical. And so she's introducing an initiative that would require the G7 nations voluntarily to agree to stockpile oil, rare earth elements and things of that nature for a 90-day supply at least, and to protect against these coercive actions by the PRC. So I think this is another area that will be very, very much discussed. And I think President Trump and Prime Minister Takeichi will be very aligned in that effort. That's all for today's China In Focus. Tiffany Meyer, if you have any feedback on the show or have something you'd like to see us cover, send us an email at chinainfocus.ntd.com. We'd love to hear from you. For other Clock with General News coverage, visit us at ntd.com or download our NTD app. Thanks for watching. See you tomorrow.