China flexes naval muscles; holds live-fire drill in Taiwan strait

China held live-fire drills in the Taiwan Strait on Wednesday but Taipei dismissed the exercises as "routine" after expected large-scale naval manoeuvres failed to materialise.

Beijing had announced the drills last week, further ramping up tensions following stark warnings against any independence moves by the self-ruled island which China sees as its sovereign territory.

Vessels had been told to avoid a certain area off the Chinese mainland's coast, triggering speculation that a flotilla spearheaded by China's sole aircraft carrier would take part in the exercise.

But Taiwan's defence ministry said Wednesday that the drills only involved land-based artillery conducting "routine" shooting practice.

Beijing has yet to release any information about the drill, which Chinese authorities had said would run until midnight, without giving any details about which military equipment or personnel would be involved.

"China deliberately released fake information to exaggerate it, to make it sound huge when in fact it's small," Taiwanese defence ministry spokesman Chen Chung-chi said.

Trump takes a u-turn; hints at rejoining Trans Pacific Partnership

President Donald trump has asked his top economic advisors to study the possibility of rejoining the multi-nation Trans Pacific Partnership (TPP), a trade pact he withdrew out the US days after assuming presidency.

"Last year, the President kept his promise to end the TPP deal negotiated by the Obama administration because it was unfair to American workers and farmers. The President has consistently said he would be open to a substantially better deal, including in his speech in Davos earlier this year," White House Deputy Press Secretary Lindsay Walters said.

"To that end, he has asked (US Trade Representative) Amb (Robert) Lighthizer and (White House Economic) Director (Lawrence) Kudlow to take another look at whether or not a better deal could be negotiated," she said.

Trump announced this during a meeting with lawmakers at the White House, Walters said.

In his remarks in Davos on January 26, Trump had said the US was prepared to negotiate mutually beneficial and bilateral trade agreements with all countries.

Saudi Prince discusses economy on Egypt trip; pledges to invest $10 bn

Saudi Crown Prince Mohammed bin Salman continued a visit to Egypt today focused on economic cooperation, with Riyadh agreeing a $10 billion investment with Cairo for a futuristic mega city project.

Prince Mohammed accompanied Egyptian President Abdel Fattah al-Sisi to review construction projects near the Suez Canal before boarding a boat with the president to tour the waterway.
A Saudi government source said the two countries had agreed to set up a joint $10 billion fund to develop areas of Egypt linked to the NEOM project.

The $500 billion NEOM mega city, unveiled by Prince Mohammed last year, is planned to be a biotech and digital hub spread over 26,500 square kilometres (10,000 square miles) in an area facing Jordan and Egypt.

China warns Trump trade sanctions on imports threaten global economy

US trade sanctions will hit the world economy, Beijing warned today, after President Donald Trump threatened to impose fresh tariffs on imports from China.
Trump said he was "considering all options," including tariffs and quotas, after he accused China of decimating the American steel and aluminium industries.

Washington has already imposed a range of tariffs on Chinese-made goods, sparking fears of a tit-for-tat trade war between the world's top two economies as China also threatens to take action.
Foreign ministry spokesman Geng Shuang told reporters that "any sign of unilateralism or protectionism will ... worsen global trade issues and will hurt the recovering momentum of the world economy".

He added that with the sheer volume of trade and integration between the US and Chinese economies, some friction was natural.