China-US Ties Appear at a Turning Point

FILE PHOTO: Chinese and US flags flutter in Shanghai, China July 30, 2019. REUTERS/Aly Song
FILE PHOTO: Chinese and US flags flutter in Shanghai, China July 30, 2019. REUTERS/Aly Song
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China-US Ties Appear at a Turning Point

FILE PHOTO: Chinese and US flags flutter in Shanghai, China July 30, 2019. REUTERS/Aly Song
FILE PHOTO: Chinese and US flags flutter in Shanghai, China July 30, 2019. REUTERS/Aly Song

Four decades after the US established diplomatic ties with communist China, the relationship between the two is at a turning point.

Tensions have reached new heights on what has always been a rocky road, as the ambitions of a rising superpower increasingly clash with those of the established one, The Associated Press reported.

China ordered the closing of the US consulate in the southwestern city of Chengdu on Friday, in rapid retaliation for the closing of its consulate in Houston.

Two weeks ago, China's Foreign Minister Wang Yi asked aloud if relations could stay on track. On Thursday, US Secretary of State Mike Pompeo delivered an answer: The time has come to change course.

“The old paradigm of blind engagement with China simply won’t get it done," he said in a speech at the Richard Nixon Presidential Library in southern California. “We must not continue it. We must not return to it.”

It was Nixon's visit to China in 1972, the first by an American president since the communists took power in 1949, that upended a Cold War paradigm and paved the way for the normalization of relations in 1979.

The United States had been a close ally of then-Chinese leader Chiang Kai-shek in World War II and for three decades recognized Taiwan as the government of China after Chiang fled there when he lost the battle for control of the mainland to the communists in 1949.

Relations between Washington and the communist government in Beijing began to thaw in the 1970s, as China's ties with the Soviet Union deteriorated and leader Mao Zedong sought a counterweight to its more powerful neighbor.

A new leader, Deng Xiaoping, visited the US in 1979 after the establishment of diplomatic ties, smiling for photographers as he tried on cowboy hat outside Houston. The consulate that is being shut opened later the same year. It was China's first in the United States.

Setting aside political differences, a democratic US and communist China promoted economic, social and cultural links that were briefly interrupted a decade later by China's military crackdown on the 1989 pro-democracy demonstrations in Beijing’s Tiananmen Square.

Relations grew exponentially in the following years, with heavy investment by US businesses in China and an accompanying Chinese trade surplus that has reached $350 billion annually.

As China has grown into the world's second-largest economy, behind only the US, it is increasingly viewed as a competitor, both economically and militarily, and a potential challenger to the Western-led democratic model that has dominated the post-World War II era.

Election-year politics in the US are fanning the flames, as President Donald Trump appears to be using friction with China to drum up support among his base. Yet, whether or not he is reelected in November, underlying tensions will remain.

“We are looking at a structural change in the relationship, which will continue even if Trump does not get a second term,” AP quoted Steve Tsang, director of the China Institute at London’s School of Oriental and African Studies, as saying.

American and Chinese battleships are constantly jockeying for position in the South China Sea, a vital shipping lane in the Asia-Pacific region.

The US is leaning on its allies to exclude Chinese telecom leader Huawei from their mobile networks, raising the specter of cybersecurity. On human rights, the US is imposing sanctions over Chinese policies in Hong Kong, Tibet and Xinjiang.

Tougher US views on China have now been “baked into the system,” Tsang said.

Pompeo's speech was only the latest in a series of sharp criticisms aimed at China by Cabinet-level officials, including Defense Secretary Mark Esper and Attorney General Bill Barr.

Although Trump earlier played up what he called a warm relationship with Chinese leader Xi Jinping, communication between the sides has fallen to new lows.

“The kind of engagement we have been pursuing has not brought the kind of change in China that President Nixon hoped to induce,” Pompeo said. “The truth is that our policies – and those of other free nations – resurrected China’s failing economy, only to see Beijing bite the international hands that fed it.”

Chu Yin, an international relations professor at University of International Relations in Beijing, said Americans who advocated engagement are disappointed that China's economic growth and the emergence of a middle class has enhanced the legitimacy of the ruling Communist Party rather than sparked democratic change.

Trump’s domestic political strategy has added some explosive elements to the structural problems in the relationship, he said.

“China will not take Pompeo’s speech seriously. It is the last cry of a lame duck,” Chu said. “China wants to have dialogue with a US politician who is more commensurate with the status of a major country.”

He declined to forecast the future, saying: "Let us be more patient at this turbulent time.”



What to Know about China's Drills around Taiwan

A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
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What to Know about China's Drills around Taiwan

A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP

China's military drills around Taiwan entered their second day on Tuesday, the sixth major maneuvers Beijing has held near the self-ruled island in recent years.

AFP breaks down what we know about the drills:

What are the drills about?

The ultimate cause is China's claim that Taiwan is part of its territory, an assertion Taipei rejects.

The two have been governed separately since the end of a civil war in 1949 saw Communist fighters take over most of China and their Nationalist enemies flee to Taiwan.

Beijing has refused to rule out using force to achieve its goal of "reunification" with the island of 23 million people.

It opposes countries having official ties with Taiwan and denounces any calls for independence.

China vowed "forceful measures" after Taipei said this month that its main security backer, the United States, had approved an $11 billion arms sale to the island.

After the drills began on Monday, Beijing warned "external forces" against arming the island, but did not name Washington.

China also recently rebuked Japanese Prime Minister Sanae Takaichi after she said the use of force against Taiwan could warrant a military response from Tokyo.

What do the drills look like?

Chinese authorities have published a map showing several large zones encircling Taiwan where the operations are taking place.

Code-named "Justice Mission 2025", they use live ammunition and involve army, navy, air and rocket forces.

They simulate a blockade of key Taiwanese ports including Keelung in the north and Kaohsiung in the south, according to a Chinese military spokesperson and state media.

They also focus on combat readiness patrols on sea and in the air, seizing "comprehensive" control over adversaries, and deterring aggression beyond the Taiwanese island chain.

China says it has deployed destroyers, frigates, fighters and bombers to simulate strikes and assaults on maritime targets.

Taipei detected 130 Chinese military aircraft near the island in the 24 hours to 6:00 am on Tuesday (2200 GMT on Monday), close to the record 153 it logged in October 2024.

It also detected 14 Chinese navy ships and eight unspecified government vessels over the same period.

AFP journalists stationed at China's closest point to Taiwan saw at least 10 rockets blast into the air on Tuesday morning.

How has Taiwan responded?

Taipei has condemned China's "disregard for international norms and the use of military intimidation".

Its military said it has deployed "appropriate forces" and "carried out a rapid response exercise".

President Lai Ching-te said China's drills were "absolutely not the actions a responsible major power should take".

But he said Taipei would "act responsibly, without escalating the conflict or provoking disputes".

US President Donald Trump has said he is not concerned about the drills.

How common are the drills?

This is China's sixth major round of maneuvers since 2022 when a visit to Taiwan by then-US House Speaker Nancy Pelosi enraged Beijing.

Such activities were rare before that but China and Taiwan have come close to war over the years, notably in 1958.

China last held large-scale live-fire drills in April, surprise maneuvers that Taipei condemned.

This time, Beijing is emphasizing "keeping foreign forces that might intervene at a distance from Taiwan", said Chieh Chung, a military expert at the island's Tamkang University.

What are analysts saying?

"China's main message is a warning to the United States and Japan not to attempt to intervene if the CCP (Chinese Communist Party) uses force against Taiwan," Chieh told AFP.

But the time frame signaled by Beijing "suggests a limited range of activities", said Ja Ian Chong, an associate professor at the National University of Singapore.

Falling support for China-friendly parties in Taiwan and Beijing's own army purges and slowing economy may also have motivated the drills, he said.

But the goal was still "to cow Taiwan and any others who might support them by demonstrating that Beijing's efforts to control Taiwan are unstoppable".


Why Do the Houthis in Yemen View Israel's Recognition of Somaliland as a Direct Threat?

People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
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Why Do the Houthis in Yemen View Israel's Recognition of Somaliland as a Direct Threat?

People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)

The Iran-backed Houthi militias in Yemen view Israel's recognition of Somaliland as direct threat, warning that any Israeli presence in the separatist region will be considered a military target.

Somaliland declared independence from Somalia in 1991. The region has operated autonomously since then and possesses its own currency, army and police force.

Diplomatic isolation has been the norm -- until Israel's move to recognize it as a sovereign nation, which has been criticized by the African Union, Egypt, the six-nation Gulf Cooperation Council and the Saudi-based Organization of Islamic Cooperation.

The European Union has insisted Somalia's sovereignty should be respected.

Houthi leader Abdelmalik al-Houthi said Israel's move was an "act of aggression on Somalia, Yemen and the security of the region."

In a statement, he added that Tel Aviv was seeking to establish "a military and intelligence foothold" in one of the world's most important waterways. He also warned that any Israeli presence in the region will be deemed a "legitimate target" for the Houthis.

Somaliland is strategically located at the entrance of the Gulf of Aden and close to the Mandeb Strait. It is one of the world's busiest waterways.

Analysts said that Israel's recognition gives it a direct outlet to the Red Sea, boosts its ability to monitor waterways and perhaps allows it to carry out military or intelligence strikes against its rivals, notably the Houthis in Yemen.

Since October 7, 2023, the Houthis had launched rocket and drone attacks against Israel and targeted ships affiliated with it in marine shipping lanes. Israel retaliated by carrying out attacks against Houthi targets in Yemen. The attacks by both sides ended with the announcement of the ceasefire in Gaza.

Political sources said the Houthis are alarmed at the prospect of Israel having a presence in Somaliland. In their view, this will lead to them being surrounded from the southwest. They also fear that Somaliland will be used as a platform for Israeli attacks against them in Yemen.


AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
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AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)

The year 2025 brought no respite for Lebanese language editor and proofreader Hamida Al-Shaker. Before the year had run its course, her decades-long professional journey was abruptly cut short.

Nearly 60, Al-Shaker had never used artificial intelligence tools or held a conversation with ChatGPT, as millions now do. She was unaware that the technologies rapidly spreading across mobile phones and computers were already doing her job, faster and more efficiently than any human could.

That quiet technological advance proved devastating. A sweeping transformation in the labor market became a tsunami, pushing Al-Shaker and millions of workers worldwide toward unemployment, sparing no sector and few age groups. The impact has been particularly harsh on employees over 50 who failed to keep pace with the accelerating speed of technological change.

According to the website allaboutai, the adoption of artificial intelligence has already contributed to the loss of around 14 million jobs globally. And the wave is far from over. As many as 92 million jobs could disappear worldwide over the next five years.

At its core, artificial intelligence enables computer systems to mimic human thinking, make decisions, and execute complex tasks, from planning to practical application, particularly in editorial and knowledge-based work.

Shock and an uncertain future

Al-Shaker was unaware of this reality, a fact that led to a shock, followed by another, during 2025, which saw the widest spread yet of AI applications. The first shock came when she received a call from the human resources department informing her that her salary would be cut by 50 percent due to “financial difficulties facing the company.” Less than five months later, a second call informed her that she was being laid off, without explanation.

According to Al-Shaker, citing her department head, she was not alone. Half of the team lost their jobs due to the impact of artificial intelligence on client contracts, as companies increasingly turned to AI to draft their news, statements, and reports, either for free or at minimal monthly subscription costs, compared with the sums they previously paid to public relations and advertising agencies.

In this context, economic analyses published by Reuters indicate that annual subscriptions to advanced AI tools, even at the enterprise level, often do not exceed the cost of paying a single employee’s salary for a limited number of months. From a purely managerial perspective, this makes such decisions easy to justify financially.

As a result, Al-Shaker and her colleagues became just another figure in a cold equation. Companies boost profits and cut production costs, while growing numbers of workers are pushed out of the labor market, not because they lack competence, but because algorithms are cheaper than people.

Most affected sectors

Al-Shaker’s story is not an isolated case. It is part of a growing global phenomenon affecting workers across multiple sectors. Specialized reports indicate that jobs based on routine tasks or repetitive data processing are most vulnerable, as automation and generative AI tools expand. Among the most affected sectors are:

Customer service and call centers, where intelligent chat systems and text and voice analysis tools can now handle user inquiries with high efficiency, according to TechRT.

Data and administrative support tasks, such as data entry, file classification, and secretarial work, are being replaced by advanced automation tools, according to Complete AI Training.

Retail and supply chains, where self-checkout systems, smart warehouses, and inventory automation have reduced the need for cashiers and traditional warehouse workers, according to Pleeq Software and ninjatech.blog.

Manufacturing and production, where the spread of robots and automated control systems has intensified the impact of AI on manual labor jobs, according to All About AI.

Accounting and financial operations, where demand for basic roles has declined due to reliance on intelligent financial software capable of handling bookkeeping and routine processes, according to Complete AI Training.

Content creation and media, which have not been spared, are now threatened as AI is capable of writing, summarizing, and rewriting content, posing a challenge to a range of basic writing tasks.

Many workers who lost their jobs do not realize that they are victims of the so-called Fourth Industrial Revolution, which Klaus Schwab, founder and executive chairman of the World Economic Forum at the time, warned about years earlier.

Speaking at the World Government Summit in Dubai in 2016, Schwab said the world was “on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another.”

He added that the scale, scope, and complexity of the changes would be unprecedented, and that while their exact shape remained unclear, the response would have to be integrated and comprehensive across the public and private sectors, academia, and civil society.

Market demands and human skills

Much of what Schwab predicted has now come to pass, particularly in recent months, as companies worldwide accelerate their adoption of AI tools. Experience alone is no longer enough to remain competitive in the labor market. Traditional jobs are changing rapidly, and the required human skills have become more specialized and complex, with greater emphasis on working alongside intelligent systems and turning information into added value.

Professionals who understand how to integrate AI tools into their daily work without sacrificing quality or analytical depth are increasingly in demand, according to Maziad Hijaz‏, Editor-in-Chief at Hewar Group‏ in Riyadh.

Hijaz told Asharq Al-Awsat that artificial intelligence has become an essential part of daily work in terms of speed and volume, while review, editing, and analysis remain entirely human responsibilities to ensure quality.

He added that the sector now requires new skills, and those who fail to adapt will be left behind. These include utilizing AI tools for writing and analysis, developing data literacy, employing predictive analysis, and transforming information into compelling narratives. Combining human skills with AI tools is what ensures excellence.

Firas Barakat, a strategic communications expert in Saudi Arabia, said AI represents a pivotal turning point in labor markets, enhancing efficiency while reshaping the nature of jobs and required skills.

Speaking to Asharq Al-Awsat, Barakat said AI has undoubtedly caused the loss of traditional roles involving routine tasks, but at the same time, it is a major engine for generating new jobs in advanced fields such as data analysis, cybersecurity, smart systems management, and digital solutions engineering, roles that did not exist just a few years ago.

History repeats itself

Technology expert Hassan Yahya, based in the United States, offered a historical perspective. He said this is not the first time the world has been stunned by technological advances, noting that similar fears over job losses have accompanied every major innovation.

He pointed to 1959, when General Motors introduced the industrial robot Unimate, triggering widespread warnings about threats to employment.

Yahya said that AI is already affecting millions of jobs, with projections from the World Economic Forum indicating that 92 million jobs will disappear over the next five years. However, more than 170 million new jobs are expected to be created, meaning a fundamental transformation of work rather than mass unemployment.

He added that eliminating jobs without replacing them does not serve companies or economies, making the creation of new roles inevitable. However, this requires learning how to work with AI, as ignoring the shift could leave many people outside a rapidly changing labor market.

Cost-cutting and profit maximization

The experiences of employees cannot be separated from a recurring economic equation that is evident in thousands of companies worldwide. Instead of retaining experienced staff with associated salaries, insurance, and end-of-service benefits, many firms are opting to replace them with AI.

A World Economic Forum report found that 41 percent of global companies plan to reduce their workforce by 2030 due to increased reliance on AI and automation.

Hijaz said AI adoption has also reshaped relationships with clients, accelerating work and significantly improving quality. He cited a Deloitte study showing that integrating AI into public relations reduced content production time by 25 to 35 percent while improving accuracy.

A market worth billions

The gains are split between business owners and AI companies, whose financial returns contrast sharply with the reality faced by thousands of displaced workers. In mid-2025, a Reuters report stated that OpenAI, the developer of ChatGPT, had reached annual revenues of around $10 billion by the end of the first half of the year, on track to exceed $12.7 billion by year's end, driven by surging demand for its services.

This growth is not limited to OpenAI. A Forbes report showed that other global technology companies with AI divisions are generating billions of dollars in additional annual revenue, making AI one of the most important profit sources for major tech firms, even as some lay off staff to improve cost efficiency.

Key players

The main players in the sector include OpenAI, best known for ChatGPT and a leader in large language models, with a strategic partnership with Microsoft.

Google DeepMind follows, having developed powerful models such as Gemini and AlphaGo, and leading in scientific, medical, and research-oriented AI.

Microsoft itself has become a global force in AI, investing billions in OpenAI and integrating AI across Windows, Office through Copilot, and Azure AI.

NVIDIA focuses on developing the chips and processors that power AI, while Meta offers open-source models such as LLaMA. Amazon Web Services leads in cloud-based AI, and Anthropic has emerged as a strong competitor in the field of language models.

The global AI market was estimated at around $747.9 billion in 2025 and is projected to grow to $2.74 trillion by 2032, according to AffMaven.

Concerns over consequences

The stark contrast between multibillion-dollar AI revenues and the growing risk facing millions of workers raises a central ethical and economic question. Why do companies benefit from technology to cut costs and boost profits while often postponing or ignoring their social responsibility toward displaced employees?

Economists warn that such savings are frequently achieved without genuine retraining efforts or alternative job creation, deepening global unemployment rather than addressing it.

Islam Al-Shafii, an economist based in New York, cited remarks by US Federal Reserve Chair Jerome Powell on Dec. 20, warning of waves of layoffs linked to AI or companies halting job postings for the same reason.

Al-Shafii said the current fear of AI remains precautionary, as it has not yet fully replaced humans. The real risk, he said, is that work previously requiring five employees can now be done by one person using AI.

He added that while some professions remain relatively safe for now, such as skilled trades, concerns persist over safety and decision-making, with international organizations expressing reservations.

Breaking monopolies

Yahya argued that confronting these changes requires breaking three major monopolies: the monopoly of university degrees in hiring, as companies like Google and Dell focus on skills rather than diplomas; the technological monopoly, as AI empowers individuals to execute ideas without large teams; and the language monopoly, as AI allows interaction in native languages, opening the digital economy to millions.

The digital economy is expected to exceed $24 trillion by 2025, accounting for approximately 21 percent of the global economy and growing faster than traditional sectors.

Capitalism under strain

Al-Shafii warned that advanced capitalist societies, which rely heavily on tax revenues from employees, could face systemic strain if jobs are replaced by AI. Without a sufficient tax base, governments may struggle to fund essential services, which can potentially lead to social instability and collapse.

He noted that business owners who once built factories in East Asia for cheap labor are now returning home to rely on robots for production.

United Nations concern

The issue has also reached the United Nations, particularly at its headquarters in New York. Al-Shafii stated that there is a deep concern over AI, but institutions often focus on gains while overlooking the associated losses.

He noted that AI supports many sustainable development goals and cybersecurity efforts, but its negative aspects, including cyber fraud and surveillance risks, have yet to be fully addressed. UN Secretary-General Antonio Guterres has repeatedly warned against militarizing AI and entrusting humanity’s future to algorithms.

Threat or opportunity?

Concerns over AI extend beyond job losses to issues of transparency and information security. Hijaz said AI requires greater responsibility to ensure accuracy and disclosure.

Asked whether AI is a threat or an opportunity, he said it is an inevitable development that must be harnessed. Like the computer and the internet before it, initial fears will likely give way to empowerment.

He added that creativity remains a uniquely human value that AI cannot replace, and that technology enhances rather than eliminates it.

Not a replacement

Translation professor Mohammed Khair Nadman told Asharq Al-Awsat that AI tools now save around 60 percent of time in translation and writing, supporting but not fully replacing human work. He warned that AI can still make serious errors, making human oversight essential.

A final attempt

Al-Shaker, living in crisis-hit Lebanon without a private sector pension system, believed her regional company job was secure. After losing it, she tried to catch up, creating a LinkedIn account, registering on job platforms, taking free online courses, and sending dozens of resumes, often receiving automated or no responses.

Her story reflects the dilemma of an entire generation pushed out of the market, not due to lack of competence, but because the rules changed abruptly.

She ended with a bitter question: Nearly two centuries after the Industrial Revolution sparked the call, “Workers of the world, unite,” will there now be a call saying, “Employees of the world, unite?”