China Prepares for Summit under Shadow of Israel-Gaza War

FILE PHOTO: A security surveillance camera overlooking a street is pictured next to a nearby fluttering flag of China in Beijing, China November 25, 2021. Picture taken November 25, 2021. REUTERS/Carlos Garcia Rawlins/File Photo
FILE PHOTO: A security surveillance camera overlooking a street is pictured next to a nearby fluttering flag of China in Beijing, China November 25, 2021. Picture taken November 25, 2021. REUTERS/Carlos Garcia Rawlins/File Photo
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China Prepares for Summit under Shadow of Israel-Gaza War

FILE PHOTO: A security surveillance camera overlooking a street is pictured next to a nearby fluttering flag of China in Beijing, China November 25, 2021. Picture taken November 25, 2021. REUTERS/Carlos Garcia Rawlins/File Photo
FILE PHOTO: A security surveillance camera overlooking a street is pictured next to a nearby fluttering flag of China in Beijing, China November 25, 2021. Picture taken November 25, 2021. REUTERS/Carlos Garcia Rawlins/File Photo

China prepared on Monday to host representatives of 130 countries for a forum that will be overshadowed by the Israel-Gaza war, as an increasingly assertive Beijing is asked to help de-escalate the violence.

At the top of the invite list to China's Belt and Road Initiative (BRI) forum is Russia's President Vladimir Putin, on his first trip to a major global power since the Ukraine invasion threw his regime into international isolation, AFP said.

Leaders have begun to trickle into the Chinese capital for a gala event marking a decade of the BRI -- a key project of President Xi Jinping to extend China's global reach.

While China hopes the forum will help boost its standing as a leading global power, Israel's war with Palestinian militant organization Hamas will continue to dominate the headlines.

Israel declared war on Hamas after waves of its fighters broke through the heavily fortified border on October 7, shooting, stabbing and burning to death more than 1,400 people, most of them civilians.

Under heavy Israeli bombardment of the Hamas-ruled Gaza Strip, more than one million people have fled their homes in scenes of chaos and despair.

Israel's bombing has left at least 2,670 people dead in Gaza, mainly civilians, and flattened entire neighborhoods.

China's Foreign Minister Wang Yi has condemned Israel's actions for going "beyond the scope of self-defense" and called for it to "cease its collective punishment of the people of Gaza".

"(Israel) should listen earnestly to the calls of the international community and the UN secretary general, and cease its collective punishment of the people of Gaza," Wang said Sunday, in what is the strongest stance China has expressed so far on the conflict.

Beijing has been criticized by Western officials for not specifically naming Hamas in its statements on the Israel-Gaza conflict.

Wang had on Sunday spoken with US Secretary of State Antony Blinken, who called on China to use its "influence" in the Middle East to push for calm.

China has a warm relationship with Iran, whose clerical leadership supports both Hamas and Hezbollah, the Lebanese militant group that could open a second front against Israel.

Beijing's special envoy Zhai Jun will visit the Middle East this week to push for a ceasefire in the Israel-Hamas conflict and promote peace talks, China's state broadcaster CCTV said on Sunday, without specifying which countries he would visit.

Niva Yau, a nonresident fellow with the Atlantic Council's Global China Hub, told AFP the BRI summit would allow Beijing to frame attendance as a gesture of support for its position.

"Any head of state that attends the summit, it's almost as if they agree with Beijing's positions on these global issues," she said.

Strategic dependence
A number of leaders have already arrived in Beijing ahead of the two-day forum, which kicks off Tuesday.

Among them are Hungarian Prime Minister Viktor Orban, Chilean President Gabriel Boric, Kenyan President William Ruto and Ethiopian Prime Minister Abiy Ahmed.

On Monday Russia's top diplomat Sergei Lavrov flew into Beijing and within hours held talks with China's Foreign Minister Wang Yi.

Putin -- whose strategic dependence on China has only grown since his invasion of neighboring Ukraine thrust his country into international isolation -- is expected to arrive overnight.

This year, trade between China and Russia has soared to levels not seen since the beginning of Moscow's war in Ukraine, with Chinese imports of Russian oil offering Moscow a critical lifeline as international sanctions bite.

China has refused to condemn the Ukraine war in an effort to position itself as a neutral party, while at the same time offering Moscow vital diplomatic and financial support.

At the heart of the deepening partnership is the relationship between Xi and Putin, who have described each other as "dear friends".

Their alliance is also forged by a symbiotic necessity, each seeing the other as a necessary bulwark in their shared struggle against Western dominance.

In an interview with Chinese state broadcaster CGTN ahead of his visit this week, Putin hailed ties with Beijing and the "mutual benefits" of the BRI.

"President Putin pointed out that a multipolar world is taking shape, and the concepts and initiatives put forward by President Xi Jinping are highly relevant and significant," CGTN reported.

"He stated that President Xi Jinping is a well-recognized leader on the world stage and is a true world leader," it said.

Putin also reportedly "shared pleasant memories between President Xi and him, and hoped tradition continues when they meet in China in the future."



Trump Says Nations Doing Business with Iran Face 25% Tariff on US Trade

US President Donald Trump speaks with members of the media aboard Air Force One en route from Florida to Joint Base Andrews, Maryland, US, January 11, 2026. REUTERS/Nathan Howard
US President Donald Trump speaks with members of the media aboard Air Force One en route from Florida to Joint Base Andrews, Maryland, US, January 11, 2026. REUTERS/Nathan Howard
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Trump Says Nations Doing Business with Iran Face 25% Tariff on US Trade

US President Donald Trump speaks with members of the media aboard Air Force One en route from Florida to Joint Base Andrews, Maryland, US, January 11, 2026. REUTERS/Nathan Howard
US President Donald Trump speaks with members of the media aboard Air Force One en route from Florida to Joint Base Andrews, Maryland, US, January 11, 2026. REUTERS/Nathan Howard

President Donald Trump said on Monday any country that does business with Iran will face a tariff rate of 25% on any trade with the US, as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.

"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America," Trump said in a post on Truth Social. Tariffs are paid by US importers of goods from those countries. Iran, a member of the OPEC oil producing group, has been heavily sanctioned by Washington for years. It exports much of its oil to China, with Türkiye, Iraq, and India among its other top trading partners.

"This Order is final ‌and ⁠conclusive," Trump said ‌without providing any further detail.

There was no official documentation from the White House of the policy on its website, nor information about the legal authority Trump would use to impose the tariffs, or whether they would be aimed at all of Iran's trading partners. The White House did not respond to a request for comment.

The Chinese embassy in Washington criticized Trump's approach, saying China will take "all necessary measures" to safeguard its interests and opposed "any illicit unilateral sanctions and long-arm jurisdiction."

"China's position against the indiscriminate imposition of tariffs is consistent and clear. Tariff wars and trade wars have no winners, and ⁠coercion and pressure cannot solve problems," a spokesperson of the Chinese embassy in Washington said on X.

Japan and South Korea, which agreed on trade ‌deals with the US last year, said on Tuesday they are ‍closely monitoring the development.

"We ... plan to take any necessary ‍measures once the specific actions of the US government become clear," South Korea's trade ministry said in a ‍statement.

Japan’s Deputy Chief Cabinet Secretary Masanao Ozaki told reporters that Tokyo will "carefully examine the specific content of any measures as they become clear, as well as their potential impact on Japan, and will respond appropriately."

Iran, which had a 12-day war with US ally Israel last year and whose nuclear facilities the US military bombed in June, is seeing its biggest anti-government demonstrations in years. Trump has said the US may meet Iranian officials and that he was in contact with Iran's opposition, while piling pressure on its leaders, including threatening military action.

Tehran said ⁠on Monday it was keeping communication channels with Washington open as Trump considered how to respond to the situation in Iran, which has posed one of the gravest tests of clerical rule in the country since the Iranian Revolution in 1979.

Demonstrations evolved from complaints about dire economic hardships to defiant calls for the fall of the deeply entrenched clerical establishment. US-based rights group HRANA said it had verified the deaths of 599 people - 510 protesters and 89 security personnel - since the protests began on December 28.

While air strikes were one of many alternatives open to Trump, "diplomacy is always the first option for the president," White House press secretary Karoline Leavitt said on Monday.

During the course of his second term in office, Trump has often threatened and imposed tariffs on other countries over their ties with US adversaries and over trade policies that he has described as unfair to Washington.

Trump's trade policy is under legal pressure as ‌the US Supreme Court is considering striking down a broad swathe of Trump's existing tariffs.

Iran exported products to 147 trading partners in 2022, according to World Bank's most recent data.


Iran Summons French, German, Italian, UK Envoys Over Support for Protests

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
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Iran Summons French, German, Italian, UK Envoys Over Support for Protests

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters

Iran on Monday summoned diplomats in Tehran representing France, Germany, Italy and the UK to object to what it described as support by those countries for the protests that have shaken the country, its foreign ministry said.

The diplomats were shown a video of the damage caused by "rioters" and told their governments should "withdraw official statements supporting the protesters", the ministry said in a statement quoted by state television.

In Paris, the French foreign ministry confirmed that "European ambassadors" had been summoned by Iran.


Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
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Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters

Iran's bazaar merchants, the trader class who were the financial backbone of the 1979 revolution, have turned against the clerics they helped bring to power, fueling unrest over an economy that has morphed into full-blown anti-government protests.

Frustration among bazaar merchants, from small-scale shopkeepers to large wholesale traders, has grown as their political and economic clout in Iran has diminished over the decades while the elite Revolutionary Guards have tightened their grip on the economy, building sprawling and tightly held networks of power.

"We are struggling. We cannot import goods because of US sanctions and because only the Guards or those linked to them control the economy. They only think about their own benefits," said a trader at Tehran’s centuries-old Grand Bazaar, speaking on condition of anonymity.

The wave of protests that has engulfed the country, posing one of the toughest challenges ever to the clerical leadership, erupted in late December in Tehran's Grand Bazaar, where hundreds of shopkeepers denounced the sharp fall in the rial currency.

The demonstrations quickly swelled and turned political, challenging the Islamic Republic's legitimacy. Protesters burned images of Supreme Leader Ali Khamenei and chanted "Death ‌to the dictator" - ‌undeterred by security forces armed with tear gas, batons, and, in many cases, live ammunition.

Iran’s ‌rulers, ⁠while acknowledging economic difficulties, have ‌blamed their longtime foes the US and Israel for fomenting the unrest. They appear intent on holding onto power at any cost, backed by a security apparatus refined over decades of suppressing ethnic revolts, student movements, and protests over economic hardship and social freedoms.

A combination of international sanctions and the Guards' sprawling economic empire has limited the government's ability to ease the dire economic situation.

Tehran-based analyst Saeed Laylaz said the government has lost control over the situation.

"What is striking is that the unrest began in the bazaar. For merchants, the core issue isn’t inflation - it’s price volatility, which leaves them unable to decide whether to buy or sell," he said.

Economic disparities between ordinary Iranians and the clerical and security elite, along with economic mismanagement and state corruption - ⁠reported even by state media - have fanned discontent at a time when inflation is pushing the price of many goods beyond the means of most people.

Iran's rial currency has lost nearly ‌half its value against the dollar in 2025, with official inflation reaching 42.5% in December.

CONTROL ‍OF SECTORS FROM OIL TO CONSTRUCTION

Created by the republic's ‍late founder Khomeini, the Guards first secured an economic foothold after the Iran-Iraq war in the 1980s, when clerical rulers allowed them ‍to invest in leading Iranian industries.

Their influence expanded exponentially over decades, benefiting from Khamenei's full backing and from opportunities created by Western sanctions, which effectively excluded Iran from the global financial and trading system.

The Guards now control vast sectors of the economy, from oil to transportation, communications, and construction.

Another trader said the crisis was not over, as the Guards have long proved adept at defending their economic interests.

"The government wants to resolve the problem, but it lacks the means and power in this system. The economy is not controlled by the government," said the trader, a 62-year-old carpet seller in Tehran.

All aspects of the country's sanctions-hit oil business have come under the growing influence of the ⁠Guards - from the shadow fleet of tankers that secretly ship sanctioned crude, to logistics and front companies selling the oil, mostly to China.

"No one knows how much of the oil money that the Guards get from selling Iran’s oil returns to the country ... they are too powerful to be questioned about it,” said a senior Iranian official, who asked not to be named.

During his 2013–2021 presidency, pragmatist Hassan Rouhani repeatedly clashed with the Guards, accusing them publicly of resisting budget cuts, while his attempts to curb their commercial networks and assets were largely frustrated.

THE ESTABLISHMENT RELIES ON THE GUARDS TO END UNREST

Even as it has relinquished economic power, the clerical establishment has relied on its loyal forces - the Guards and its affiliated Basij paramilitary - to violently crush ethnic uprisings, student unrest, and protests over economic hardship, preserving the political order.

"Given the sensitive circumstances when the country faces foreign threats, Khamenei cannot upset the Guards by curbing their economic influence. The establishment needs them to quell the protests and confront foreign threats," said an insider, close to Rouhani.

US-based rights group HRANA said it had verified the deaths of 544 people - 496 protesters and 48 security personnel - with 10,681 people arrested since ‌the protests began on December 28 and spread around the country. Reuters was unable to independently verify the tallies.

The authorities have not given numbers of casualties, but officials say many members of the security forces have been killed by "terrorists and rioters" linked to foreign foes, including the US States and Israel.