BEIJING/HONG KONG — When US President Donald J. Trump took office a year ago with an “America First” agenda, many saw trouble for China’s sluggish economy, but Beijing has thawed frosty relationships with other trade partners to post a record trade surplus.

While Mr. Trump’s policies have strained ties with traditional US allies, China has turned its focus to fostering ties with key partners, including Canada and India, analysts say.

As a result, the world’s second-largest economy’s trade surplus hit a record $1.2 trillion in 2025, monthly foreign exchange (forex) inflows touched $100 billion, the largest ever, and the global usage of China’s currency, the yuan, has expanded.

When British Prime Minister Keir Starmer lands in China on Wednesday evening hoping to reinvigorate recently strained business ties, analysts and experts say Beijing is expected to further expand its global political and economic influence.

Backed by its $20-trillion economy and $45 trillion worth of stock and bond markets, China is emerging as a “steady partner” for many countries, said Aleksandar Tomic, economics professor at Boston College.

“I think China has done a good job and rightly so to position itself as the reliable and stable trade partner,” said Derrick Irwin, co-head of intrinsic emerging markets equity at Allspring Global Investments.

“They basically said, look, you’ve got a massive trade partner in the US that’s become a little more uncertain. We can offer predictability and certainty. And I think that’s very fair.”

Mr. Starmer’s four-day visit to China will be the first by a British prime minister since 2018 and follows that of Canadian Prime Minister Mark Carney earlier this month, the first Canadian prime minister to visit Beijing since 2017.

During Mr. Carney’s visit, the two nations signed an economic deal to tear down trade barriers and forge a new strategic relationship. Mr. Carney described China as “a more predictable and reliable partner.”

But China is not alone in eyeing new trade pacts to de-risk from the United States. India and the European Union (EU) struck a long‑delayed trade deal on Tuesday that will slash tariffs on most goods, boosting two‑way trade to potentially double European exports to the South Asian country by 2032.

CHINA ECONOMY RESILIENT
While the world’s two largest economies have been locked in geopolitical disputes for the past few years, Mr. Trump’s return to the White House in January 2025 sharply escalated tensions on multiple fronts, including trade and technology.

Mr. Trump raised tariffs on China to over 100% in April, before partially reversing and settling for a temporary truce, while Beijing boosted its exports to non-US markets and rolled out support measures for its private enterprises and markets.

Chinese shipments to the US fell 20% in 2025, but rose 25.8% to Africa, 7.4% to Latin America, 13.4% to Southeast Asia and 8.4% to the EU last year.

“Many countries previously have not been China-friendly are now kind of pivoting to China… because the United States is becoming a lot less predictable,” Mr. Tomic said. “The more the US gets difficult to deal with, the more it opens up for China.”

Despite the trade tensions with the US, China’s economy, under deflationary pressure at home due to weak domestic consumption and a long-term property sector slump, has met the government’s target of 5% growth in 2025.

In recent months China has taken a raft of measures to boost foreign investment, including pilot programs in Beijing, Shanghai and other regions to expand market access in services such as telecoms, healthcare and education.

The country recorded the largest-ever monthly forex inflows of $100.1 billion in December, according to bank settlement data from its forex regulator. Its official forex reserves hit a 10-year high of $3.36 trillion.

Its financial market has emerged robust from trade disputes with the Shanghai index climbing 27% over the past year, outperforming US equities, the market turnover hitting a record high and the yuan expanding its global usage.

With the dollar becoming less appealing to investors due to Mr. Trump’s erratic approach to trade and international diplomacy, Beijing is also pushing ahead with its ambition to bolster the global usage of yuan, said bankers with knowledge of the matter.

Some of the big global banks are scrambling to boost yuan liquidity in offshore hubs and put in place frameworks for faster payment settlements in yuan in trade corridors of China and Southeast Asia, the Middle East, and Europe, they added.

“We have seen quite a few cycles of China trying to internationalize yuan and then pulling back,” said a banker at a global bank with China presence. “This time it’s different… Trump policies are very conducive for boosting yuan usage.”

More than half of China’s cross-border transactions are now settled in yuan, from almost none 15 years ago, while nearly half of China’s overseas bank lending is now in renminbi, according to the latest data from the PBOC and SAFE.

CHINA CAUTION
But some foreign policy analysts caution against China’s new, friendlier economic and political playbook.

Despite the new trade pacts, Patricia Kim, a foreign policy fellow at Washington-based Brookings Institution, said distrust of the US does not translate into trust in Beijing for US allies and partners.

“Many of these countries harbor deep concerns about China’s approach to trade, its use of economic coercion, and unresolved maritime and historical disputes,” Ms. Kim said.

“In the current moment, China may appear more restrained or pragmatic when compared with the Trump administration’s extreme rhetoric and actions. But Beijing’s actual behavior has not been especially reassuring.” — Reuters

SEOUL — A South Korean court sentenced former first lady Kim Keon Hee on Wednesday to one year and eight months in jail after finding her guilty of accepting Chanel bags and a diamond pendant from Unification Church officials in return for political favors.

The court cleared Ms. Kim, the wife of ex-President Yoon Suk Yeol who was ousted from office last year, on charges of stock price manipulation and violating the political funds act.

Prosecutors will appeal against the two not-guilty verdicts, media reports said.

The ruling, which can also be appealed by the former first lady, comes amid a series of trials following investigations into Mr. Yoon’s brief imposition of martial law in 2024 and related scandals involving the once-powerful couple.

The position of first lady does not come with any formal power allowing involvement in state affairs, but she is a symbolic figure representing the country, the lead judge of a three-justice bench said.

“A person who was in such a position might not always be a role model, but the person must not be a bad example to the public,” he said in the ruling.

The court ordered her to pay a 12.8 million won ($8,990) fine and ordered the confiscation of the diamond necklace. Ms. Kim has been held in detention since August while she was being investigated by a team led by a special prosecutor.

Prosecutors had demanded 15 years in jail and fines of 2.9 billion won over all the accusations she faced.

The court cleared Ms. Kim on charges of manipulating stock prices and violating political funding laws.

Ms. Kim had denied all the charges. Her lawyer said the team would review the ruling and decide whether to appeal the bribery conviction.

Ms. Kim, clad in a dark suit and wearing a face mask, was escorted by guards into the courtroom at the Seoul Central District Court and sat quietly while the verdict was delivered.

Supporters of Mr. Yoon and Ms. Kim, who braved freezing temperatures outside the court compound, cheered after the not-guilty verdicts on two of the charges were delivered.

The Unification Church said the gifts were delivered to her without expecting anything. Its leader Han Hak-ja, who is also on trial, has denied that she directed it to bribe Ms. Kim.

SHAMAN, POLITICAL BROKER
Ms. Kim had drawn intense public scrutiny even before her husband was elected president in 2022 over questions about her academic records and lingering suspicion that she had been long involved in manipulating stock prices.

Her alleged association with a political broker and a person known as a shaman also drew public criticism that the two may be unduly influencing the former first couple.

Mr. Yoon, who was ousted from power last April, also faces eight trials on charges including insurrection, after his failed bid to impose martial law in December 2024.

He has appealed against a five-year jail term handed to him this month for obstructing attempts to arrest him after his martial law decree.

At a separate trial this month, prosecutors have sought the death penalty for  Mr. Yoon on the charge of masterminding an insurrection. The court will rule on the case on February 19.

Mr. Yoon has argued it was within his powers as president to declare martial law and that the action was aimed at sounding the alarm over the obstruction of government by opposition parties. — Reuters

TAIPEI — Senior Taiwanese and US officials discussed cooperation in artificial intelligence (AI), tech and drones at a high-level forum begun during the first Trump administration, with the US State Department praising Taipei as a “vital partner.”

The US is Taiwan’s most important international backer and arms supplier despite the lack of formal diplomatic ties. The US-Taiwan Economic Prosperity Partnership Dialogue first took place in November 2020.

In a statement on Tuesday, the State Department said the sixth round of talks took place, led by Under Secretary for Economic Affairs Jacob Helberg and Taiwan Economy Minister Kung Ming-hsin, who is visiting the US.

The two sides signed statements on the Pax Silica Declaration — a US-led initiative to secure AI and semiconductor supply chains — and US-Taiwan cooperation on economic security, the State Department said.

“Taiwan is a vital partner on these and other important economic initiatives, and its advanced manufacturing sector plays a key role in fueling the AI revolution,” it added.

The talks also featured exchanges on supply chain security, including how it relates to AI, certification on drone components and cooperation on critical minerals, the State Department said.

“Discussions focused on highlighting progress in responding to economic coercion, pursuing mutual cooperation in third countries and addressing tax-related barriers to increase investment between the United States and Taiwan,” it said.

Taiwan, a major producer of advanced semiconductors that power AI, has long pushed for an agreement to avoid double taxation, saying it would boost bilateral investment.

In a separate statement, Taiwan’s economy ministry said both sides agreed that peace and stability across the Taiwan Strait are “crucial to global economic security and prosperity.”

Taiwan and the US also discussed undersea cable security, low Earth orbit satellite cooperation and the training of high-tech talent, it added.

Taiwan has accused China of being involved in damaging undersea telecom and internet cables, which Beijing denies, and is expanding the use of low Earth orbit satellites for backup communications should China sever the cables during an attack on the island.

Taiwan and the US earlier this month reached a deal to cut tariffs on Taiwan’s exports to the US and boost Taiwanese investment in semiconductors and other sectors in the country.

China routinely objects to any interactions between Taiwanese and US officials, saying Taiwan is an internal affair and a red line that Washington should not cross.

Taiwan’s government rejects Beijing’s sovereignty claims, saying only the island’s people can decide their future. — Reuters