China Calls in Shipping Giants Amid Panama Canal Tensions | China in Focus

Welcome to China In Focus. I'm Tiffany Meyer. Our top story. President Trump says the U.S. will keep the Strait of Hormuz open for countries that rely on it, including China. What's the status quo there as the U.S. continues strikes on Iran? China is calling in executives from the world's two largest shipping firms to discuss rising shipping costs and international disruption tied to the Iran conflict. The move also comes as both firms take over key Panama Canal ports. The Chinese telecom company is facing a major federal ruling in Illinois. The U.S. says it stole sensitive technology from U.S.-based Motorola Solutions. We break down the ruling. And War Secretary Pete Hegg says the U.S. is winning with an unrelenting focus on its objectives, adding that Tuesday will be the most intense day of strikes in Iran. President Trump announced the U.S. is keeping the Strait of Hormuz open for all countries, including China. The remark on Monday comes just weeks ahead of his meeting with Chinese leader Xi Jinping. I want to keep it open. I want to keep it good. You know, it doesn't pertain to us so much as it does to China. We're really helping China here and other countries because they get a lot of their energy from the Straits. But look, we have a good relationship with China. It's my honor to do it. Ships have largely avoided the waterway over fears of being attacked. Oil prices fell Tuesday after soaring over $100 a barrel the day before, their highest level in more than three years. That says Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to global oil supplies. Trump also fired a serious warning to Iran if they decide to block the flow of oil. And I will not allow a terrorist regime to hold the world hostage and attempt to stop the globe's supply. And if Iran does anything to do that, they'll get hit at a much, much harder level. I will take out those targets that were easy and that I mentioned just before. We'll take them out so quickly they'll never be able to recover ever. 20 percent of global oil supply flows through the Strait of Hormuz, a critical waterway between Iran and Oman. Through the Strait, ships transport oil and gas from the Middle East to China, Europe and the U.S. Trump says the U.S. wants to keep energy and oil flowing to the world amid strikes on Iran. During this brief disruption, the United States is offering political risk insurance to any tankers operating in the Gulf. So we're putting up risk insurance. We'll perhaps go alongside of them for protection. We don't think it'll be necessary if it is. And if they do anything, the price will be incalculable. Trump also noted the U.S. would waive certain oil-related sanctions to reduce energy prices. After the press conference, he posted on Truth Social saying the effort to keep the Strait open is a gift from the U.S. to China and other countries that heavily rely on it. Iranians have been paying close attention to President Trump's remarks about the Strait of Hormuz. Iran says it is awaiting the U.S. naval fleet in the Strait of Hormuz. According to CNN, citing its sources, the Iranian regime says it will not reopen the Strait despite Trump's threats. Reports indicate Tehran is even drawing up plans for possible duties on ships trying to transit the waterway. President Trump took to Truth Social to respond to Iran's claims, saying, quote, if Iran has put out any mines in the Hormuz Strait and we have no reports of them doing so, we want them removed immediately. If for any reason mines were placed and they are not removed forthwith, the military consequences to Iran will be at a level never seen before. If, on the other hand, they remove what may have been placed, it will be a giant step in the right direction. Energy Secretary Chris Wright says the U.S. could tap into its strategic petroleum reserve amid the war with Iran. The U.S. would coordinate sales with releases from other countries. The U.S. Strategic Reserve, located on the coasts of Texas and Louisiana, holds 415 million barrels of oil. Wright added that the U.S. could allow more sales of Russian oil held in tankers in Asia. Late last week, Washington issued a 30-day waiver, allowing the sale of Russian crude currently stranded at sea to continue to India. Yesterday, the International Energy Agency called for a coordinated oil release. The agency told G7 finance ministers that it holds more than 1.2 billion barrels of public emergency oil stocks. Amid the war in Iran and disruptions to global oil prices, G7 nations are preparing to potentially use their strategic oil reserves. Here's France's finance minister. We just had a meeting of the G7 energy ministers after yesterday's G7 finance minister, where we decided in principle to use all available tools in order to stabilize market, including the potential release of stockpiling. The G7 energy ministers today decided to go further than the route of working to get ready to any opportunity. G7 ministers are asking the International Energy Agency, based in Paris, to provide updated data on oil reserves. They say they need more details before they decide to use the oil reserves. The French finance minister says member states want to be ready to react at any moment. He adds that all members are aware of the situation and are willing to stabilize the market, including the United States. The White House telling Americans that oil prices will drop once the war in Iran is over. The Trump administration says it's confident that the goals of Operation Epic Fury will be accomplished soon. Rest assured to the American people, the recent increase in oil and gas prices is temporary, and this operation will result in lower gas prices in the long term. Once the national security objectives of Operation Epic Fury are fully achieved, Americans will see oil and gas prices drop rapidly, potentially even lower than they were prior to the start of the operation. And we will live in a world where Iran can no longer threaten the United States or our allies with a nuclear bomb. The White House says President Trump is committed to ensuring that the Strait of Hormuz remains operational for oil tankers. Levitt adds that the president and his energy team are closely watching the markets and speaking with industry leaders. The White House says the U.S. military is making tremendous strides towards achieving the military objectives of the operation. So far, they've struck over 5,000 Iranian targets, destroyed 50 Iranian naval vessels, reduced Iranian missile attacks by 90 percent, and drone attacks by 85 percent. U.S. airstrikes against Iran will reach their most intense level. War Secretary Pete Hexeth making the remarks during a press conference on Tuesday morning with General Dan Cain, chairman of the Joint Chiefs of Staff. Iran stands alone and they are badly losing. On day 10 of Operation Epic Fury, we are winning with an overwhelming and unrelenting focus on our objectives. Today will be yet again our most intense day of strikes inside Iran. The most fighters, the most bombers, the most strikes, intelligence more refined and better than ever. So that's on one hand. On the other hand, the last 24 hours have seen Iran fire the lowest number of missiles they've been capable of firing yet. Hexeth discussed when the war could end, saying that's for President Trump to decide, but the war secretary said the will of the United States is endless and that he wants the American people to understand the Trump administration won't allow what he described as mission creep. He says President Trump set forward a very specific mission to accomplish. Hexeth also saying the operation is focused on three main objectives, destroying Iran's missile stockpiles and launch systems, eliminating its naval capabilities and preventing the country from obtaining nuclear weapons. Meanwhile, General Dan Cain said the U.S. was carrying out strikes against Iran's mine-laying vessels. Cain also praising the men and women aboard strike group ships. There's 30 knots of wind in your face. The deck is slippery, covered in grease. It's noisy. There are propellers spinning. There's jet blast everywhere. The helicopters are running. Your head is on a swivel and you're trying to direct a multimillion dollar fighter into a one foot square box so that those naval aviators can be shot off into the black of night to go do America's work. Those jets are fully loaded with missiles and bombs and they are a world-class team combined with the naval aviation and the aviators in those jets. This beautiful symphony of American spirit is the definition of perfectly organized chaos and these crews do it every single time the carrier is at work. Cain says U.S. and allied forces have now struck more than 5,000 targets across Iran's southern flank. The top general saying Iran is still fighting but is now quote more formidable than what we thought. According to Cain, missile attacks from Iran have dropped about 90 percent. Both drone attacks have declined by more than 80 percent since the operation began. Cain also honored several service members who recently died while serving overseas. The general extending condolences to their families and saying their sacrifices will not be forgotten. Israeli Prime Minister Benjamin Netanyahu spoke at a meeting on Tuesday with Israel's hospital and health system leaders in Jerusalem. He said he hopes to empower the Iranian people to rid themselves of tyranny. Watch. Our aspiration is to enable the Iranian people to throw off the yoke of tyranny. In the end it depends on them but there is no doubt that through the actions taken so far we are breaking their bones and our hand is still extended. Netanyahu vowed to continue striking Iran. Israel says its war aim is to overthrow Iran's system of clerical rule. U.S. officials mainly say Washington's aim is to destroy Iran's missile capabilities and nuclear program. But President Trump stated the war can end only with a compliant Iranian government. China is firing warnings against major shipping disruptions tied to the war in Iran. On Tuesday Beijing summoned executives from the world's two largest shipping companies to discuss rising freight costs. The companies Maersk and Mediterranean Shipping Company were called in by China's transport ministry to talk about their broader shipping operations. Officials say they're concerned about supply chain stability after both companies raised freight rates and paused some services to and from the Middle East. Maersk also added fees to transport additional cargo that The Iran conflict has severely disrupted traffic through the Strait of Hormuz, a key global shipping lane, forcing many carriers to halt sailings to ports in the Gulf. According to customs data, China shipped over 30 billion dollars in goods to Middle Eastern countries in just the first two months of this year. But more notably the two shipping giants summoned by China are also tied to another growing dispute around the Panama Canal. In late February, Panama ended port concessions held by Hong Kong-based CK Hutchinson at the port of Balboa in Cristobal. Operations at Balboa are now run by a Maersk subsidiary while a subsidiary of MSC operates the Cristobal port. Panama says the move is part of an 18-month transition to keep canal traffic running. But Panama Ports Company, a CK Hutchinson subsidiary, has filed a claim seeking at least two billion dollars in damages. Analysts say China's decision to summon the companies during its annual two sessions meetings could signal diplomatic and commercial pressure. Both firms maintain major port investments and significant market share inside China. Panama has not issued a direct response, but it's framing the port dispute as a legal and commercial matter to avoid escalating tensions. President Trump wants the Strait of Hormuz to remain open, but the Iranian regime has threatened to block or even close the waterway. Data show that China relies on the Strait more than any other country for crude oil imports. If disruptions continue, what would the consequences be for China? NTD's Don Ma spoke with David Blackman, energy policy analyst and advisor and a senior contributor at Forbes. Take a look. So let's talk about the Strait of Hormuz and the world's biggest oil exporter, Saudi Aramco, warned of catastrophic consequences for oil markets if flows don't resume through the waterway. And as you're aware, data shows China and other eastern nations rely on the Strait for crude the most. So I mean, if disruptions continue, I just want to ask about these countries, what would be the consequences for them? You already talked about some potential impacts that the U.S. would feel. Well, the U.S. impacts are going to be mainly price related. We don't have any vulnerability to a supply shock here in the United States. The impacts are going to be biggest on Europe, which has, you know, a self-created dependency on foreign oil that doesn't need to exist, but it's all a matter of their policy choices over the last two decades. And then China, which has been importing 14, 16 million barrels of crude a day, about 7 to 8 million of which have been coming from the Persian Gulf through the Strait of Hormuz. So those are the countries that are most impacted. And when we look at this proposal by the G7 to take a lot of crude oil out of strategic petroleum reserves, I don't know why the United States would participate in that. That's not America's problem. That's a problem for Europe and China. China has a petroleum reserve that's the biggest in the world. If we need to put, you know, take oil out of crude oil reserves, I don't know why the International Energy Agency isn't telling China to do it, not the United States of America. Our supply's already been deleted by Joe Biden's presidency, and we, you know, we haven't been able to refill it, unfortunately. So our supply is already fairly depleted, and I don't think it would be a real wise decision to take more out of our SPR here in the United States. Do you think this war and disruptions to oil supply in the Strait, the waterway, could that, you know, potentially lead nations like India and Japan to shift their supply, maybe even buy more American? It could. You know, they're all going to have to make those decisions. India's a kind of a unique situation. They've really enjoyed, like China has, the ability to buy highly discounted crude oil from Russia over the past few years, the sanctioned oil that Russia has been putting into the dark fleet of tankers. And of course, that ability is kind of gone away now, especially with the U.S. Treasury lifting those sanctions on Russia now. They're going to be paying market prices for that crude. And so they're all going to have to reevaluate the situation of this disruption. If the United States and if the Persian Gulf countries can provide certainty to the market that the situation's secure, and this kind of disruption isn't going to happen again, then, you know, things will go back, pretty much back to normal. But if it remains an uncertain situation, you know, markets hate uncertainty. And so you're going to have a lot of disruptions and rejiggering of imports by each country that's dependent on them. President Trump did say and the administration did say that the operation is ahead of schedule. So, I mean, when it does come to an end, whether we're talking about oil prices or the movement or the production of oil, how long would it take for that to go back to normal before this operation started? Are we talking about days, weeks, months? It'll depend on the situation in each one of those Gulf countries, the Persian Gulf countries. The UAE, I know, and Kuwait both have had to begun shutting in some of their production. And it can take a while for that to come back online, a period of days, not weeks or months. And the big situation, though, is going to be with LNG and Qatar. You know, we've taken 20% of global supply offline in Qatar here over the past week. And getting an idled LNG export facility restarted, refilled with the gas and the refrigeration running again and getting it fully restarted, can take a period of weeks. So it's going to be a more difficult situation with LNG than it is with crude oil. Coming up, tensions over fentanyl are rising ahead of President Trump's visit to China. The U.S. and China clashed at a U.N. drug meeting over the issue. And a Chinese telecom company is facing a major federal ruling in Illinois. The U.S. says it stole sensitive technology from U.S.-based Motorola Solutions. We break down the ruling. More on that after the break here on China In Focus. Welcome back to China In Focus. I'm Tiffany Meyer. A five-year legal battle is finally reaching a conclusion. A Chicago federal judge just fined Chinese telecom company Hytera $50 million for conspiring to steal technology from Motorola Solutions. That's according to a Monday federal court press release. The company's ties to the Chinese Communist Party are also under scrutiny. Hytera Communications is known for making radio communication systems and devices. According to the court's press release, the Chinese telecom firm started recruiting Motorola employees in 2006, directing them to steal the U.S. company's trade secrets. This know-how took Motorola Solutions years to develop. Using the stolen information, Hytera engineers built products at a fraction of Motorola's cost and competed with the U.S. company in the same market for years. On top of that, Hytera is far more than just a radio systems manufacturer. The company is partially owned by Beijing. It has close ties to the Chinese Communist Party, its military, and the policing system used to monitor citizens. The Federal Communications Commission first blacklisted five Chinese companies in 2019, and Hytera was one of them. U.S. government officials and Congress say these entities pose unacceptable risks to national security. Now back to the lawsuit. The Chinese company pleaded guilty to stealing trade secrets last year. Beyond the $50 million, Hytera must also pay more than $200 million in restitution and submit annual reports to the U.S. government. The U.S. and China clashing at a U.N. drug meeting Monday. The exchange underscored tensions between the two powers over fentanyl-related issues and tariffs ahead of President Trump's China visit. White House drug czar Sarah Carter says China has failed to stop the sale of precursor chemicals used to make fentanyl. She added that they are manufactured by the millions of tons in China. Carter noted that weak Chinese export controls have allowed its chemical industry to build ties with drug cartels. At the same time, China's tight controls over rare earth minerals wreak havoc on legitimate industries. China denies the allegations. Fentanyl is the leading cause of death in the U.S. for people ages 18 to 45. Most fentanyl precursor chemicals come from China. Last year, the U.S. agreed to lower tariffs on China in exchange for Beijing cracking down on fentanyl, resuming soybean purchases and keeping rare earth exports flowing. The Supreme Court has struck down the 10 percent fentanyl-related tariffs that Trump imposed on China. The administration says it plans to reimpose the levy under a different law. Operation Epic Fury has been a target for fake war photos and videos generated by artificial intelligence. The disinformation is being used to monetize content, spread propaganda and create confusion as people try to learn what's happening inside Iran. NTD's Sean Marshall has more. Fake videos and photos used as propaganda for Operation Epic Fury has taken on new roles. Rather than just boosting morale for pro-Iranian regime viewers or sending out disinformation to the world, the fake media quickly became a source of social media monetization income for its fast spreading speed. People closely watching war developments are constantly reposting information to friends, family and the world, but constantly having to deal with AI fake photos and videos. An example is this post that says confirmed the aircraft carrier Abraham Lincoln was bombed with Iranian missiles. People then reposting information have to find out through other means if the real and then send the post out saying that it's fake to warn others, making the post spread even further. One account of an expert open source intelligence analyst has been exposing fake after fake to lessen the spread of disinformation. In just a 24 hour period he might post up to 10 to 15 fake images and videos exposing the constant stream of disinformation. The situation got so bad that on March 3rd Nikita Beer, head of product at X, announced updates to X's creator revenue sharing policies in a post that states, starting now users who post AI generated videos of an armed conflict without adding a disclosure that it was made with AI will be suspended from creator revenue sharing for 90 days. Subsequent violations will result in a permanent suspension from the program. Aside from fakes there are also many old pictures and videos being reused to look like new content. Show Marshall NTD News. That's all for today's China in Focus. I'm Tiffany Meyer. If you have any feedback on the show or have something you'd like to see us cover send us an email at chinainfocus at ntd.com. We'd love to hear from you. For on the clock original news coverage visit us at ntd.com or download our NTD app. Thanks for watching, see you tomorrow.