Outgoing US President Joe Biden is set to meet his Chinese counterpart Xi Jinping today for what is likely to be his last time as US president.
The two leaders are expected to hold talks on the sidelines of a meeting of Asia-Pacific leaders in the Peruvian capital, Lima.
It comes against the backdrop of increasing tension in the US-China relationship with a potential trade war looming under a Trump presidency, several China hawks tapped for US cabinet positions and China’s growing status among global south countries as an emerging leader of an alternative world order.
This week China was focused on events in the southern city of Zhuhai.
First there was a car ramming attack at Zhuhai’s sports stadium which left 25 people dead. A shocking event that was heavily censored in China.
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What happened at Zhuhai sports centre?
Less than an hour’s drive away the country was holding its premier air show.
It was a military enthusiast’s dream, and not even intermittent rain could keep the crowds of tens of thousands of people away from relishing in the roar of jets in the skies above Zhuhai.
China’s fighter jet fleet
One of the main drawcards was China’s newest stealth fighter the J-35A. It will join the country’s J-20 in service for the People’s Liberation Army Air Force (PLAAF).
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The J-10C was China’s aerobatics star of the show. There were daily displays of its prowess in sky-high manoeuvres and formations that impressed onlookers, leaving a streak of colours across the cloudy rain-clogged sky.
China’s military modernsiation programme is continuing apace
It boasts the largest navy in the world and the largest armed forces by active-duty personnel.
The People’s Liberation Army (PLA) Airforce is developing fast too.
Dr Nicole Leveringhaus, a China security expert from King’s College London, says: “China started with very little. It was devastated by wars on many fronts in the 30s and 40s. Its defence industry was depleted. In 70-plus years it’s built itself up and now we’re seeing the results.
“It’s an impressive feat to go from a bloated land-based peasant guerrilla army to what it has to today.”
Chinese pride and nationalism on display
Enjoying the air show spectacle, military fan Liu Liansong said: “I think the air show is great. It is a firm manifestation of the air force’s development from scratch. We as Chinese people feel very proud.”
The air show included massive exhibition halls of military hardware, from drones to robotics, firearms and mock missiles. Merely getting from one end of the venue to the other through densely packed crowds was a mission.
Russia in the air
The other crowd puller this week was Russia’s aerobatic air force unit, performing daily theatrics at dizzying speeds.
It is another sign of the deepening ties between China and Russia.
One Russian tourist and recreational pilot, Yulia, told Sky News: “Both sides are looking for good communication in business, aviation and in many spheres including tourism.”
The secretary of Russia’s security council and former defence minister Sergei Shoigu also visited the air show, viewing both Chinese and Russian-made jets.
In Beijing, secretary Shoigu was quoted by Russian state media as saying: “I see the most important task as countering the policy of ‘dual containment’ of Russia and China pursued by the United States and its satellites.”
The West is increasingly frustrated by China’s support of Russia. The US has sanctioned two Chinese companies, accusing them of being involved in the production of Russian aerial drones used on the battlefield.
China insists it is not supplying weapons to Russia.
One of the companies, Xiamen Limbach Aircraft Engine Co, had a small stand in one of the exhibition halls. Its representatives declined Sky News’ request for an interview.
Tariff war brewing
Despite the raw military might on display in Zhuhai, in China there is uncertainty and unease about what an impending Donald Trump presidency will mean for global trade.
President-elect Trump has threatened blanket tariffs of up to 60% on Chinese products exported to the US.
This would be a serious blow to China’s target GDP growth and comes at a time when the country’s economy faces deep-set challenges.
At the other end of the country, in Beijing analysts are weighing up the impact of possible tariffs and the Chinese government’s options to respond.
Senior Asia analyst Chim Lee, from The Economist Intelligence Unit, is not optimistic that a US-China agreement to minimise the damage can be reached.
“I think both sides have recognised that the era of making deals is passed,” Mr Lee said.
“We’re going to see China starting with some targeted measures, tariffs it feels more comfortable to impose,” he explained. “But there are also areas where China is starting to be a bit more aggressive.”
This action could include export controls on China’s production of critical minerals and retaliatory tariffs on US agriculture exports.
Trade competition, military posturing and complicated geo-political alliances have set the stage for a challenging next phase in US-China relations.
The possibility that a power cable under the Baltic Sea between Finland and Estonia has been sabotaged is being investigated after it stopped working on Christmas Day.
Authorities in both countries are examining whether a foreign ship may have been involved, without naming the vessel.
It’s the latest in a series of incidents in the region in which undersea cables appear to have been damaged.
The Estlink-2 cable suffered a sudden failure on Wednesday, Finnish Prime Minister Petteri Orpo said.
“The police, in cooperation with the Border Guard and other authorities, are investigating the chain of events of the incident,” Finnish police said in a statement.
There was no power loss to citizens in either Estonia or Finland during the outage, with Estonia saying they had enough spare capacity to meet power needs, public broadcaster ERR said on its website.
But the 658 megawatt (MW) Estlink 2 power interconnector remained offline following the outage that began at midday local time, leaving only the 358 MW Estlink 1 in operation between the two countries, operator Fingrid said.
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Baltic Sea nations are on high alert for potential acts of sabotage following a string of outages of power cables, telecom links and gas pipelines since 2022, although subsea equipment is also subject to technical malfunction and accidents.
Yesterday’s incident comes after the Balticconnector gas pipeline linking Finland and Estonia was damaged last year, along with several telecoms cables.
Finnish police investigating that incident said it was likely caused by a ship dragging its anchor.
It comes as Swedish police are leading an investigation into the breach last month of two Baltic Sea telecom cables, in an incident German defence minister Boris Pistorius has said he assumed was caused by sabotage.
The Nord Stream natural gas pipelines that once brought natural gas from Russia to Germany were damaged by underwater explosions in September 2022.
Authorities have termed it sabotage and launched criminal probes.
Sir Keir Starmer has condemned Russia’s Christmas Day bombardment of Ukraine, saying the hail of missiles and drones was “bloody and brutal”.
The prime minister lamented that there was “no respite even at Christmas” for Ukrainians, who spent the morning sheltering in metro stations as bombs rained down on their cities.
Russia’s defence ministry said it carried out a “massive strike” on energy facilities that it claimed supported Kyiv’s military.
Volodymyr Zelenskyy also condemned the attack, saying Russia was seeking to plunge his people into darkness.
“Putin deliberately chose Christmas,” he said on Wednesday. “What could be more inhumane?”
In the east, Kremlin forces claim to have captured the settlement of Vidrodzhennia as they continue to make territorial gains.
‘Christmas gift to Ukraine’
Regions across the country reported missile and drone strikes as Ukrainians spend another holiday season facing attacks on their power infrastructure.
Kyiv’s military said it downed 59 Russian missiles and 54 drones, but others made it through their air defences.
Strikes in Kharkiv wounded six people and left half a million in the region without heating, as temperatures hovered just a few degrees above zero.
“Kharkiv is under massive missile fire. A series of explosions rang out in the city and there are still ballistic missiles flying in the direction of the city. Stay in safe places,” Kharkiv mayor Ihor Terekhov said.
In the capital, residents faced blackouts while in Dnipro region one person was killed.
Dnipropetrovsk Governor Serhiy Lysa said the Russian army is trying to destroy the region’s power system.
Ukrainians, marking their second Christmas since changing to celebrate on the same day as the West, sheltered in underground metro stations as the deadly salvo of missiles soared towards them.
“Russia’s Christmas gift to Ukraine: more than 70 missiles and 100 drones,” US ambassador Bridget Brink said. “For the third holiday season, Russia weaponises winter.”
In the east, Ukrainian soldiers celebrated Christmas by candlelight as they ate together near the frontline.
Fighting continues to be tough in Donbas, as Russian forces push forward and make steady gains.
On Wednesday, Russia’s defence ministry said its forces had taken the settlement of Vidrodzhennia.
Across the border, in Russia’s Kursk region, four people were killed and five injured in the town of Lgov after Ukrainian shelling, the region’s acting governor said.
“A five-storey residential building, two single-storey residential buildings and a single-storey beauty salon were seriously damaged,” Alexander Khinshtein wrote on Telegram.
Pope calls for peace talks
In the Vatican, Pope Francis mentioned the war in Ukraine directly during his Christmas Day message, calling for “the boldness needed to open the door to negotiation”.
Speaking to thousands of people from the balcony of St Peter’s Basilica, he said: “May the sound of arms be silenced in war-torn Ukraine!”
He also called for “gestures of dialogue and encounter, in order to achieve a just and lasting peace”.
Azerbaijan Airlines said the aircraft had been forced to make an emergency landing at Aktau airport.
Russia’s aviation watchdog said in a statement that preliminary information suggested the pilot had decided to make an emergency landing after a bird strike.
Ramzan Kadyrov, an ally of Vladimir Putin and leader of Chechnya, expressed his condolences and said those being treated in hospital were in an extremely serious condition and that he and others would pray for their rapid recovery.