Chinese and Indonesian firms will sign business agreements totaling more than $10 billion on Sunday, President Prabowo Subianto said as he met his counterpart Xi Jinping in Beijing during a state visit.

Prabowo, on his first foreign trip since his inauguration last month, said the relationship between China and Indonesia is getting “stronger and stronger,” according to a pool report of Saturday’s welcoming ceremony. Xi said Prabowo’s decision to visit China first is a reflection of the Indonesian leader’s emphasis on developing ties between the two sides.

Xi and Prabowo presided over the signings of several documents and memorandums of understanding between their governments. They include the joint development of fisheries and oil and gas in maritime areas of overlapping claims between the two countries as well as on maritime safety, and deepening cooperation on the blue economy, water and mineral resources and green minerals.

China, which was also Prabowo’s initial foreign destination as president-elect in April, is a priority as Indonesia’s biggest trading partner and the source of more than $7 billion of investment in commodity processing capacity and infrastructure.

“Indonesia considers China not only as a great power, but as a great civilization,” Prabowo said. “It is only natural that now in the present situation — geopolitical and geoeconomic — that Indonesia and China have become very close partners and in many, many fields.”

Prabowo said he will attend a meeting on Sunday between the Indonesian Trade and Industry Chamber of Commerce and top Chinese corporations, where billions of dollars of deals will be inked.

“This is a very significant milestone in our relationship,” he said. “Over a decade of comprehensive strategic partnership, our cooperation stretches all sectors.”

Prabowo will be in Beijing until Sunday before heading to the US to meet President Joe Biden and, possibly, his successor Donald Trump, balancing relations with the world’s two biggest economies.

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Taiwan Semiconductor Manufacturing Company has notified Chinese chip design companies that it will suspend production of their most advanced artificial intelligence chips, as Washington continues to impede Beijing’s AI ambitions.

TSMC, the world’s largest contract chipmaker, told Chinese customers it would no longer manufacture AI chips at advanced process nodes of 7 nanometres or smaller as of this coming Monday, three people familiar with the matter said.

Two of the people said any future supplies of such semiconductors by TSMC to Chinese customers would be subject to an approval process likely to involve Washington.

TSMC’s tighter rules could reset the ambitions of Chinese technology giants such as Alibaba and Baidu, which have invested heavily in designing semiconductors for their AI clouds, as well as a growing number of AI chip design start-ups that have turned to the Taiwanese group for manufacturing.

The US has barred American companies like Nvidia from shipping cutting-edge processors to China and also created an extensive export control system to stop chipmakers worldwide that are using US technology from shipping advanced AI processors to China. There have been reports that a new US rule would ban foundries from making advanced AI chips designed by Chinese firms, according to analysts at investment bank Jefferies.

TSMC is rolling out its new policy as the US Commerce Department investigates how cutting-edge chips the group made for a Chinese customer ended up in a Huawei AI device. The Chinese national tech champion is subject to multiple US sanctions and export controls.

People familiar with TSMC’s move said its decision was driven by a “combination” of the need to improve internal controls in the wake of that ongoing probe and the next wave of US export controls on chip supplies to China, expected before US President Joe Biden leaves office.

“We want to start mitigating before there are solid, structured regulations,” one of the people said.

The company is understood to be particularly wary of being targeted as unreliable or uncooperative as Donald Trump is set to become the next US president.

This year, Trump accused Taiwan of “stealing” the US chip industry, and suggested TSMC could move its production back home after pocketing billions of dollars in subsidies from Washington for building fabrication plants in the US.

A person close to TSMC said its move was “not a show for Trump but definitely designed to underscore that we are the good guys and not acting against US interests”.

Being cut off from TSMC could hurt Chinese tech giants that have bet on making their most advanced AI chips in Taiwan. Search giant Baidu, in particular, is aiming to build a full stack of software and hardware to underpin its AI business.

Near the centre of those efforts is its Kunlun series of AI chips. Its Kunlun II processor is made by TSMC on its 7-nanometre level of miniaturisation, according to Bernstein Research.

“Kunlun chips are now especially well-suited for large model inference and will eventually be suitable for training,” Baidu founder Robin Li told a conference last year. Li added that the group had been effective in cutting costs by designing its own chips.

The people briefed on the situation said TSMC’s new rules were clear in targeting AI processors, but it was so far unclear how widely that would be applied to other chips. China has a number of leading start-ups designing AI chips for self-driving, including Hong Kong-listed Horizon Robotics and Black Sesame International Holding.

Executives and company materials at both groups have indicated their newest generation of chips would be made by TSMC on the 7-nanometre node.

The people close to TSMC said its new restrictions would not have a major impact on its revenue. TSMC’s October revenue increased 29.2 per cent to NT$314bn ($9.8bn), a slight deceleration of growth compared with preceding months.

In a statement, TSMC said it was a “law-abiding company and we are committed to complying with all applicable rules and regulations, including applicable export controls”.

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Europe won’t be able to finance Ukraine’s defenses against Russia’s invasion on its own if the US withdraws support under Donald Trump’s next presidency, Hungarian Prime Minister Viktor Orban said Friday.

Orban said recent events vindicated the conclusions from his controversial July diplomatic mission to Kyiv, Moscow and Beijing and showed Ukraine was losing the war.

“The Americans are going to get out of this war,” Orban, who is hosting a European Union summit in Budapest on Friday, said on public radio. “Europe can’t finance this war on its own.”

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The European Union and China said they made some progress after a week of technical talks in Beijing aimed at scaling back or reversing tariffs that the bloc applied to electric vehicles made in China.

The EU and China have been seeking an agreement on so-called price undertakings — a complex mechanism to control prices and volumes of exports, used to avoid tariffs.

China’s invitation to negotiate in person was seen a sign of some momentum in the talks, according to people familiar with the matter.

Several rounds of talks didn’t yield a solution that meet the EU’s strict requirements, including alignment with WTO rules and compensating for the full effect of the duties. The 27-nation bloc also wants to ensure it can monitor compliance.

Negotiations will continue at a technical level next week, both sides said.

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You do not vote fascism away. Even though this feels obvious, the right-wing political establishment in the U.S. has accomplished something remarkable with the help of the Democratic Party. They managed to shift the discourse so far right that they normalized positions that were possibly once inconceivable for many liberal voters.

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Chinese President Xi Jinping told Malaysian Prime Minister Anwar Ibrahim that the two nations should strengthen strategic ties and enhance mutual political trust in efforts to support their core interests.

China’s leader said the two countries should deepen mutually beneficial cooperation and jointly promote development in digital economy, artificial intelligence, new energy and other areas, state broadcaster China Central Television reported, citing their Thursday meeting at the Great Hall of the People in Beijing.

The Malaysian leader’s trip comes as the Muslim-majority country draws closer to Beijing, with Anwar openly criticizing the US over its support of Israel. Last month, Malaysia, Indonesia, Vietnam and Thailand became partner nations to the BRICS bloc that China and Russia hope becomes a counterweight to the US-led West.

China also welcomes more high-quality Malaysian imports and is willing to deepen cooperation in other areas including higher education, culture and tourism, Xi said.

The Malaysian government is committed to enhancing its strategic ties with China, Anwar was quoted as saying in the report.

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Donald Trump’s imminent return to the White House was not the surprise it was when he won his first term, Chinese officials have said, and this time, policy strategy and contingencies have been planned well in advance.

When Trump won the 2016 US presidential election, Beijing, like the rest of world, was caught off guard because attention had focused on Democratic nominee Hillary Clinton, the country’s former top diplomat and a familiar face for Beijing.

Speaking on condition of anonymity, Chinese officials told the Post that a mix of research and preparation was under way well before election day so that Beijing would be better prepared in the event of a second Trump term.

Discussions on how to prepare for the possibility of a second Trump term began in the spring, according to an official overseeing research.

A source familiar with the situation said advisers wrote reports on how to manage such an outcome.

The person added that he believed Chinese officials were also looking into the prominent role that the world’s richest person – Elon Musk – had played, as well as his ties with China.

The Tesla and SpaceX boss gave more than US$120 million to help fund Trump’s campaign. Musk has also had extensive dealings with top Chinese leaders due to his business in China, but it is unclear what role the billionaire will play in the new administration.

Trump’s victory will not affect China’s general economic direction; it has been set with all kinds of scenarios taken into consideration, according to a contact from a central level economic-related office.

“But when Trump comes back, the US may resume its strategy of pulling back and pushing for manufacturing to return home, escalating the trade war, and this could create barriers to exporting products and affect the real economy in China,” the person added.

Another source familiar with China’s Middle East foreign policy said China may have to adjust its diplomatic strategy in view of Trump’s steadfast support for Israel and his bold moves in his first term to relocate the US embassy from Tel Aviv to Jerusalem.

The possibility of an intensified arms race is also on Beijing’s radar, according to the source.

Trump’s stance on China may not differ much from his first term but “its indirect policies – those affecting areas outside China – and their impact would be very different [when they land on China]”, a contact with a trade-related office said.

The US approach to China has seen a major shift, and Trump in 2017 listed China, along with Russia, as America’s primary threats. Under Trump, tensions between the two countries spilled over from trade to technology, and from geopolitics to ideology.

Zhu said China’s approach to US policy was already set and remained consistent. “Even with its pressure on China, Beijing continues to emphasise that both countries should still work together,” he said.

“Still, there is no way that you can sufficiently prepare for it. Now with Republicans dominating the White House and the Senate, the Congress could push agendas much further than we have seen under Biden, such as on the removal of [most-favoured nation] status and on diplomatic recognition of Taiwan.”

Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute’s Centre for China Analysis, said: “China is better prepared for Trump this time, and [Chinese President Xi Jinping] is likely to target his preference for deal-making to press for strategic advantage in the Indo-Pacific.”

China would look to divide and rule US allies and partners by trumpeting Beijing’s support for economic globalisation and framing Washington as a disruptive force, he added.

The US and China have each built up their respective alliances over the past couple of years in economic, military and diplomatic fields.

China’s top challenge under Trump would be guiding its delicate economy through the bruising tariff war that he wanted to unleash, he said.

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The Republican president-elect has threatened to relaunch a trade war with Europe, withdraw US support for Ukraine, and roll back America’s transatlantic security commitment.

Even as European leaders scrambled to congratulate Donald Trump and offered to work with him, some of their underlings were on the brink of despair.

“It is a disaster for us, there is no good to come from this,” said an EU diplomat, whose weary eyes betrayed an all-nighter watching the election results roll in.

Officials in the Belgian capital have spent months discussing how to “Trump-proof” the EU and Nato.

On Monday, its incoming trade chief Maros Sefcovic said that regardless of who won, the bloc would “put forward an offer of cooperation” but would “be ready to stand up for our interest if faced with a disruptive scenario”.

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Israel

“Congratulations on history’s greatest comeback! Your historic return to the White House offers a new beginning for America and a powerful recommitment to the great alliance between Israel and America. This is a huge victory! In true friendship,” Prime Minister Benjamin Netanyahu posted on social media platform X.

Iran

The livelihoods of Iranians will not be affected by the US election, government spokeswoman Fatemeh Mohajerani told reporters after a cabinet meeting in Tehran.

“The US elections are not really our business. Our policies are steady and don’t change based on individuals. We made the necessary predictions before and there will not be change in people’s livelihoods,” she said.

Hamas

Trump’s victory puts to test his earlier statements that he can stop the war in Gaza within hours, Hamas official Sami Abu Zuhri told the Reuters news agency. The Democratic party’s loss is the natural price for its leadership’s “criminal stance” towards Gaza, Abu Zuhri said, adding that “we urge Trump to learn from [US President Joe] Biden’s mistakes.”

China

“Our policy towards the US is consistent,” Ministry of Foreign Affairs spokeswoman Mao Ning said at a news briefing.
“We will continue to view and handle China-US relations in accordance with the principles of mutual respect, peaceful coexistence and win-win cooperation,” she added.

Ukraine

“I appreciate President Trump’s commitment to the ‘peace through strength’ approach in global affairs. This is exactly the principle that can practically bring just peace in Ukraine closer,” President Volodymyr Zelenskyy wrote on X.

United Kingdom

Prime Minister Keir Starmer said, “Congratulations President-elect Trump on your historic election victory. I look forward to working with you in the years ahead. As the closest of allies, we stand shoulder to shoulder in defence of our shared values of freedom, democracy and enterprise.”

NATO

Secretary-General Mark Rutte: “I just congratulated Donald Trump on his election as President of the United States. His leadership will again be key to keeping our Alliance strong. I look forward to working with him again to advance peace through strength through NATO.”

European Union

“The EU and the US are more than just allies. We are bound by a true partnership between our people, uniting 800 million citizens,” European Commission President Ursula von der Leyen said. “So let’s work together on a strong transatlantic agenda that keeps delivering for them.”

India

Congratulating Trump on a “historic election victory”, Prime Minister Narendra Modi posted on X that “as you build on the successes of your previous term, I look forward to renewing our collaboration to further strengthen the India-US Comprehensive Global and Strategic Partnership.”

Russia

“Trump has one useful quality for us: as a businessman to the core, he mortally dislikes spending money on various hangers-on and stupid hanger-on allies, on bad charity projects and on voracious international organisations,” former President Dmitry Medvedev posted on the Telegram messaging app.

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A top Republican lawmaker has accused the Biden administration of not doing enough to prevent China’s Semiconductor Manufacturing International Corporation (SMIC) from strengthening the country’s chipmaking industry and military-industrial complex.

Michael McCaul, chair of the House Foreign Affairs Committee, urged US Commerce Department agents to visit SMIC’s facilities and check whether the company is illegally producing chips for Huawei Technologies, the sanctioned telecommunications equipment company seen as a national champion within China’s chip industry.

In a November 4 letter seen by Reuters, McCaul described what he called “growing bipartisan frustration” that the Commerce Department’s Bureau of Industry and Security (BIS) had not acted on reports of Huawei’s efforts to evade US export controls.

McCaul said SMIC’s breakthroughs – including its advanced chip in a Huawei smartphone, and expected production of over a million artificial intelligence (AI) processors for Huawei – are a “smoking gun” for a violation and could help China surpass the US in AI.

The Commerce Department said it had received McCaul’s letter and would respond through “appropriate channels”. Last week, in response to similar criticism, it said that no Commerce Department had been tougher on China.

SMIC did not immediately respond to requests for comment, nor did Huawei.

The Chinese embassy in Washington said in a statement that “certain US politicians” were “overstretching the concept of national security” and politicising “science and technology and economic and trade issues”.

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