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Chinese President Xi Jinping speaks with Russian President Vladimir Putin as leaders gather for a family photo during the Belt and Road Forum on Yanqi Lake, outside Beijing, China, May 15, 2017.

Damir Sagolj | Reuters

China and Russia are taking center stage this week as both countries look to deepen ties just as a chasm with the West, on a geopolitical and economic as well as military front, appears to be getting deeper, according to analysts.

A three-day state visit by Chinese President Xi Jinping to Moscow this week, which began Monday, was hailed by China and Russia’s presidents as the result of solid and cooperative relations between the two leaders and their respective nations, and comes after a determined drive over the last decade to strengthen diplomatic, defense and trade ties.

Ahead of the visit, President Vladimir Putin said in an article that “unlike some countries claiming hegemony and bringing discord to the global harmony, Russia and China are literally and figuratively building bridges” while his Chinese counterpart returned the favor, telling AFP he is “confident the visit will be fruitful and give new momentum to the healthy and stable development of Chinese-Russian relations.”

Xi’s visit to Moscow is something of a political coup for Russia given that it comes at a time when Russia has few high-powered friends left on the international stage, and little to show for its invasion of Ukraine.

Russian forces have made little tangible progress despite a year of fighting, and a largely isolated Moscow continues to labor under the weight of international sanctions. To add insult to injury, the International Criminal Court issued an arrest warrant for Putin on Friday, alleging that he is responsible for war crimes committed in Ukraine during the war.

Nonetheless, China and Russia have long shared similar geopolitical aims, such as a desire to see what they call a “multi-polar world” and the curbing of NATO’s military might, that unite them. And perhaps the most significant shared viewpoint of all is their mutual, long-standing distrust of the West.

A confluence of recent events — from the war in Ukraine to Western restrictions on semiconductor tech exports to China and, lately, a nuclear submarines deal between the U.S., U.K. and Australia that irked Beijing — has only served to bring the countries even closer together, according to analysts.

“If you look at the trajectory of China-Russia relations within the last decade, bilateral ties between the two countries have really developed tremendously,” Alicja Bachulska, policy fellow at the European Council on Foreign Relations (ECFR) told CNBC, saying that the process of developing ties had begun back in the 1990s.

“It’s basically about certain strategic interests, that are very close to both Beijing and Moscow at this point,” she added. “For both Russia and China, the main interest is to weaken the U.S.-led international order, that’s their primary goal, long term and short term.”

The Ukraine factor

For both China and Russia, the war in Ukraine is both a challenge to that U.S.-led world order and a way to undermine it, analysts note.

China has held back from openly supporting Russia’s war in Ukraine but it has also refused to condemn the invasion. Instead, it has echoed Moscow in criticizing the U.S. and NATO for what it sees as “fueling the fire” over Ukraine. It has also sought to carve out a niche for itself as peacemaker, calling on both sides to agree a cease-fire and come to the negotiating table for talks.

Behind the scenes, the West is concerned that Beijing could provide lethal weaponry to Russia to enable it to gain the upper hand in Ukraine, as U.S. intelligence suggested last month. Ukraine’s Western allies have signaled that any move to do so would be a red line and that, should Beijing cross it, there would be “consequences” in the form of sanctions placed on China.

Beijing has vehemently denied it is planning on supplying Russia with any military hardware. China’s foreign ministry spokesman Wang Wenbin said Monday, reiterating previous comments, that the West was supplying weapons to Ukraine, not China, telling reporters that “the U.S. side should stop fueling the fires and fanning the flames … and play a constructive role for a political solution to the crisis in Ukraine, not the other way around.”

China’s President Xi Jinping waves as he disembarks off his aircraft upon arrival at Moscow’s Vnukovo airport on March 20, 2023.

Anatoliy Zhdanov | Afp | Getty Images

China has denied it is planning to help Moscow militarily but analysts say Beijing is concerned over the war in Ukraine, noting that China views a Russian failure in Ukraine as a threat, given that it carries the risk of a potentially seismic political fallout back in Russia that in turn could harm Beijing.

“The worst case scenario for Beijing now is Russia’s complete failure in this war,” the ECFR’s Bachulska said.

“If they begin to think that Russia might fail — and that in the really worst-case nightmare scenario that there [could be then] a pro-democratic government in Moscow — for China, this would be a very threatening scenario,” she noted, seen as both a “direct threat to Beijing, and the stability of the CCP [Chinese Communist Party].”

This fear, she said, could sway China when it considers whether to offer Putin help in Ukraine. “They will probably be able to provide more support if they realize that the balance of power on the battlefield is against Russia,” Bachulska noted.

China has 'doubled down' on its support for Russia, says research organization

It’s highly likely that, should China help Russia in terms of weaponry or military technology, however, it will look to do it in a very covert way, analysts including Bachulska and those at the Institute for the Study of War have noted, such as using Belarus or other countries.

“Xi likely plans to discuss sanctions evasion schemes with Putin and Russian officials to support the sale and provision of Chinese equipment to Russia,” the ISW said in analysis ahead of the Xi-Putin summit, noting that it had previously assessed that during a recent meeting between the presidents of Belarus and China, agreements may have been signed that “facilitate Russian sanctions evasion by channeling Chinese products through Belarus.”

The ISW said Xi and Putin are “likely to discuss sanctions evasion schemes and Chinese interest in mediating a negotiated settlement to the war in Ukraine.”  CNBC contacted China’s Foreign Ministry for a response to the comments and is yet to receive a response.

Tech and trade wars

While possible military aid for China is something the West needs to watch closely, the depth and breadth of China’s loyalty toward Moscow is seen to be finite, with Beijing likely reluctant to risk major sanctions on its own economy just to help Russia.

On the other hand, analysts note that China, like Russia, has a vested interested in seeing the U.S. and wider West weakened, both geopolitically and diplomatically — for instance, if China can step in as a mediator in the conflict in Ukraine — and on an economic level, if the two nations can forge closer trade ties. This would come as the U.S. and Europe challenge China’s economic power, most recently with the introduction of sweeping export control rules aimed at restricting China’s ability to access advanced computing chips.

“Export controls on Chinese high tech — which reflect a policy of targeted containment — brings Xi closer to Putin in worldview and orientation,” Ian Bremmer,  founder and president of the Eurasia Group, told CNBC, adding: “I think that’s likely to be reflected in Xi’s statements when he … visits Putin in Moscow, and that’s going to be a big deal geopolitically,” Bremmer noted.

How Biden’s chip export restrictions hit chip stocks

While Russia might offer China a convenient trading and diplomatic partnership as other routes to Western markets look increasingly vulnerable, analysts note that the relationship between China and Russia is an imbalanced one.

“China doesn’t really need Russia,” Christopher Granville, managing director of global political research at TS Lombard, told CNBC. “Russia is a very tiny economy compared to China’s with the exception of some very specific things, such as its hydrocarbon exports and some aspects of its military industries,” he noted.

“What I would say though is that the U.S. pressing on China, especially in these trade wars and now tech wars, is a clear zero-sum project by the U.S. government to prevent China from reaching the frontier of key technologies, notably semiconductors,” he noted.

“It seems to me that as a result of the U.S. government’s zero-sum campaign to pull back China, to stop it getting ahead and keep it behind, is that suddenly the relationship with Russia becomes more valuable to China.”

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SunZia Wind’s massive 2.4 GW project hits a big milestone

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SunZia Wind’s massive 2.4 GW project hits a big milestone

GE Vernova has produced over half the turbines needed for SunZia Wind, which will be the largest wind farm in the Western Hemisphere when it comes online in 2026.

GE Vernova has manufactured enough turbines at its Pensacola, Florida, factory to supply over 1.2 gigawatts (GW) of the turbines needed for the $5 billion, 2.4 GW SunZia Wind, a project milestone. The wind farm will be sited in Lincoln, Torrance, and San Miguel counties in New Mexico.

At a ribbon-cutting event for Pensacola’s new customer experience center, GE Vernova CEO Scott Strazik noted that since 2023, the company has invested around $70 million in the Pensacola factory.

The Pensacola investments are part of the announcement GE Vernova made in January that it will invest nearly $600 million in its US factories and facilities over the next two years to help meet the surging electricity demands globally. GE Vernova says it’s expecting its investments to create more than 1,500 new US jobs.

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Vic Abate, CEO of GE Vernova Wind, said, “Our dedicated employees in Pensacola are working to address increasing energy demands for the US. The workhorse turbines manufactured at this world-class factory are engineered for reliability and scalability, ensuring our customers can meet growing energy demand.”

SunZia Wind and Transmission will create US history’s largest clean energy infrastructure project.

Read more: The largest clean energy project in US history closes $11B, starts full construction


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Stablecoin issuer Circle files for IPO as public markets open to crypto

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USDC stablecoin issuer Circle files for IPO as public markets open to crypto

Jeremy Allaire, Co-Founder and CEO, Circle 

David A. Grogan | CNBC

Circle, the company behind the USDC stablecoin, has filed for an initial public offering and plans to list on the New York Stock Exchange.

The prospectus, filed with the SEC on Tuesday, lays the groundwork for Circle’s long-anticipated entry into the public markets.

JPMorgan Chase and Citigroup are serving as lead underwriters, and the company is reportedly aiming for a valuation of up to $5 billion. It will trade under ticker symbol CRCL.

It marks Circle’s second attempt at going public. A prior merger with a special purpose acquisition company (SPAC) collapsed in late 2022 amid regulatory challenges. Since then, Circle has made strategic moves to position itself closer to the heart of global finance, including the announcement last year that it would relocate its headquarters from Boston to One World Trade Center in New York.

Circle reported $1.68 billion in revenue and reserve income in 2024, up from $1.45 billion in 2023 and $772 million in 2022. The company reported net income last year of about $156 million., down from $268 million a year earlier.

Read more about tech and crypto from CNBC Pro

A successful IPO would make Circle one of the most prominent pure-play crypto companies to list on a U.S. exchange. Coinbase went public through a direct listing in 2021 and has a market cap of about $44 billion.

Circle will be trying to hit the public markets at a volatile moment for tech stocks, with the Nasdaq having just wrapped up its steepest quarterly drop since 2022. The tech IPO market has been mostly dry for over three years, though there are signs of life. Online lender Klarna, digital health company Hinge Health and ticketing marketplace StubHub have all filed their prospectuses recently. Late last week, artificial intelligence infrastructure provider CoreWeave held the biggest IPO for a U.S. venture-backed tech company since 2021. But the company scaled back the offering and the stock had a disappointing first two days of trading before rebounding on Tuesday.

Circle is best known as the issuer of USD Coin (USDC), the world’s second-largest stablecoin by market capitalization.

Pegged one-to-one to the U.S. dollar and backed by cash and short-term Treasury securities, USDC has roughly $60 billion in circulation and makes up about 26% of the total market cap for stablecoins, behind Tether‘s 67% dominance. Its market cap has grown 36% this year, however, compared with Tether’s 5% growth.

The company’s push into public markets reflects a broader moment for the crypto industry, which is enjoying political favor under a more crypto-friendly U.S. administration. The stablecoin sector specifically has been ramping up as the industry gains confidence that the crypto market will get its first piece of U.S. legislation passed and implemented this year, focusing on stablecoins. President Donald Trump has said he hopes lawmakers will send stablecoin legislation to his desk before Congress’s August recess.

Stablecoins’ growth could have investment implications for crypto exchanges like Robinhood and Coinbase as they become a bigger part of crypto trading and cross-border transfers. Coinbase also has an agreement with Circle to share 50% of the revenue of its USDC stablecoin, and Coinbase CEO Brian Armstrong said on the company’s most recent earnings call that it has a “stretch goal to make USDC the number 1 stablecoin.” 

The stablecoin market has grown about 11% so far this year and about 47% in the past year, and has become a “systemically important” part of the crypto market, according to Bernstein. Historically, digital assets in this sector have been used for trading and as collateral in decentralized finance (DeFi), and crypto investors watch them closely for evidence of demand, liquidity and activity in the market.

WATCH: Circle CEO on launching first stablecoin in Japan

Circle CEO on launching the first stablecoin in Japan

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BYD’s global EV takeover is far from over as overseas sales double to start 2025

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BYD's global EV takeover is far from over as overseas sales double to start 2025

After its meteoric rise in the global auto industry last year, the Chinese EV giant is off to a hot start in 2025. BYD sold over one million EVs and plug-in hybrids in the first three months of the year. Even more impressive, BYD’s overseas sales doubled to start the year as it expands into new markets. With new EVs arriving, some predict BYD could see even more growth this year.

BYD’s overseas sales are surging as new EVs arrive

BYD sold 377,420 new energy vehicles (NEVs) last month alone. Like most Chinese automakers, BYD reports NEV sales, including plug-in hybrids (PHEVs) and fully electric vehicles (EVs).

Of the 371,419 passenger vehicles BYD sold in March, 166,109 were EVs, and the other 205,310 were PHEVs. Combined, BYD’s sales were up 23% compared to last year.

BYD’s Dynasty and Ocean series accounted for 350,615, while its luxury Denza brand sold 12,620, Fang Cheng Bao had 8,051, and its ultra-luxury Yangwang brand sold another 133 models.

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Through the first three months of 2025, BYD sold over one million (1,000,804) NEVs. That’s up 60% from the 626,263 sold in Q1 2024. Fully electric models accounted for 416,388 while PHEV sales reached 569,710, an increase of 39% and 76% from last year, respectively.

BYD-overseas-EV-sales
BYD Dolphin (left) and Atto 3 (right) at the 2024 Tokyo Spring Festival (Source: BYD Japan)

BYD’s overseas sales reached a new record last month, with 72,723 vehicles sold in markets outside of China. Through March, BYD has sold over 206,000 NEVs overseas, more than double (+110%) the number it sold last year.

BYD has made a name for itself with ultra-low-cost EVs like the Seagull, which starts at under $10,000 in China. In overseas markets, like Mexico, it’s sold as the Dolphin Mini and starts at around 358,800 pesos, or around $20,000.

BYD-overseas-EV-sales
BYD Seagull EV (Dolphin Mini) testing in Brazil (Source: BYD)

The world’s largest EV maker is quickly expanding into new segments with pickup trucks, smart SUVs, luxury models, and electric supercars rolling out.

Last week, BYD launched the Yangwang U7, its first ultra-luxury electric sedan. With four electric motors, the U7 packs 1,287 horsepower, good for a 0 to 62 mph (0 to 100 km/h) sprint in just 2.9 seconds. It also has up to 720 km (447 miles) CLTC driving range.

BYD's-ultra-luxury-EV-sedan
BYD Yangwang U7 ultra-luxury electric sedan (Source: Yangwang)

The Porsche Panamera-size EV is loaded with BYD’s top-tier “God’s Eye” A advanced driving assistance system, DiPilot 600, and a host of other premium features. All of that, and it starts at just just 628,000 yuan ($87,700).

In Europe, BYD is aggressively expanding with new vehicles tailored to buyers in the region, like the Sealion 7 midsize SUV and Atto 2. It’s also expected to launch the low-cost Seagull EV in Europe later this year or early 2026 as the “Dolphin Surf.”

BYD-overseas-EV-sales
BYD’s wide-reaching electric vehicle portfolio (Source: BYD)

According to S&P Global Mobility, BYD’s sales are expected to double in Europe this year to around 186,000. By 2029, that number could reach 400,000 or more.

BYD outsold Honda and Nissan in 2024. As it aims to sell 5.5 million vehicles this year, BYD could be on track to surpass Ford in global sales this year. BYD also aims to sell over 800,000 EVs overseas in 2025, double the number it sold last year.

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