What’s at stake in William Ruto’s state visit to China?
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Hello and welcome to World Today, I am Dinghan in Beijing. Coming up, China and Kenya have upgraded their ties to a new level featuring community with a shared future. China says Beijing firmly supports Tehran holding nuclear talks with Washington.

China has launched a new team of astronauts to the country's Tiangong space station. And we are going to take a look at how Southeast Asian countries are reacting to a whopping 3500% American tariff on solar panels from the region. To listen to this episode again or to catch up on our previous episodes, you can download our podcast by searching "World Today".

China and Kenya have elevated their ties to a China-Kenya community with a shared future for the new era, calling it a strategic choice.

The decision was made in a Thursday meeting between Chinese President Xi Jinping and his Kenyan counterpart William Ruto here in Beijing. President Xi Jinping called on China and Kenya to become the leading force in terms of promoting the high-quality Belt and Road cooperation, suggesting that China is open to importing more quality products from Kenya.

Xi Jinping also said win-win cooperation and common development is going to serve as the fundamental guiding principle for China-Africa ties despite the ever-changing international situation. And for his part, President William Ruto said Kenya is willing to expand collaboration with China in multiple areas including trade, infrastructure, education, etc.

The two leaders witnessed the signing of 20 cooperation agreements. The Kenyan leader is currently on a five-day state visit to China. So joining us now on the line is Sultan Ali, a China affairs observer and retired Air Force officer based in Pakistan. So thank you very much for joining us today, Sultan. This is William Ruto's first state visit to China since he took office as president of Kenya in 2022.

So why is this trip important to both China and Kenya? And by the way, what is your understanding of a China-Kenya community with a shared future for the new era?

Okay, first of all, thank you so much for having me on your show. It is always a privilege to speak my mind. So coming to your question, indeed, President William Ruto's state visit to China is a significant milestone in the diplomatic and economic relationship between the two nations because it underscores Kenya's strategic importance to China, particularly as a gateway to Africa.

And the visit aims to deepen cooperation in areas like infrastructure, healthcare, green energy and agriculture, aligning with Kenya's national development priorities. But for China, this visit is a symbolic win, showcasing its ability to strengthen ties with the African nations amidst the shifting global dynamics.

China represents Kenya's biggest trading partner globally, while at the same time Kenya is China's biggest trading partner in East Africa. Two-way trade between China and Kenya grew by almost 12% year-on-year in the first quarter of 2025. What do you make of this momentum in terms of the two-way trade?

Well, the concept of a China-Kenya community with a shared future for the new era reflects a vision of mutual benefit and collaboration. It emphasizes solidarity and cooperation within the Global South

aiming to foster modernization and sustainable development through tangible initiatives. Now, please mind you, this partnership is not just about economic gains, but it is also about creating a framework for a long-term strategic alignment.

And you rightly pointed out that the trade momentum between China and Kenya is remarkable and reflects a deepening economic partnership because, as you said, in the first quarter of 2025, bilateral trade grew by 12 percent, reaching a record high of 16.13 billion yuan. That is about 2.2 billion US dollars. Now, this marks the sixth consecutive quarter of growth.

showcasing the strength of the trade ties between China and Kenya. Now also, on the other hand, China's exports to Kenya increased by 11.8%, while imports from Kenya rose by 13.2%. And Kenya's agriculture products such as tea and avocados have found a stable market in China, with tea exports alone surging by 175.2%.

On the other hand, China continues to supply Kenya with high-quality goods, including construction machinery and consumer products, supporting Kenya's industrial growth and infrastructure development. So I guess in other words, the two economies of China and Kenya are highly complementary to each other. When we talk about avocado, that's a must-have.

That has almost become a must on average Chinese people's dinner table, especially for those who are pursuing healthy diet. Now, in a bigger picture sense, Salton, we know during their meeting, both President Xi Jinping and President William Ruto actually voiced opposition to trade war and any action that will harm international trade rules.

So at a time when many countries are faced with unilateral tariffs imposed by the United States or the threat of U.S. tariffs, what can China and Kenya, or more broadly speaking, what can China and African countries do together to somehow jointly safeguard a multilateral trading system?

Well, that's a very important question, Ning Heng, because in this moment of global uncertainty caused by the unilateral US tariffs and threats, mind you, China and Africa, including Kenya, can take several steps to safeguard a multilateral trading system and unilateral US tariffs and threats. Now, what are they?

In my opinion, they should strengthen regional trade agreements. China and African nations can deepen their collaboration through regional trade agreements like the African Continental Free Trade Area. And this would enhance intra-African trade and create a united front in the global trade negotiations.

My two cents worth diversify trade partnerships by expanding trade relations beyond traditional partners. African countries can reduce their dependence on any single market and China's Belt and Road Initiative. It offers opportunities for infrastructure development and trade diversification also

promote global South solidarity, both China and Africa can advocate for the interests of developing nations in international forums, emphasizing the need for equitable trade practices and reforms in global institutions. Also,

invest in infrastructure and technology. Collaborative investments in infrastructure and technology can boost trade efficiency, competitiveness, enabling African nations to better integrate into the world economy. Lastly,

they should engage in diplomatic advocacy. Joint diplomatic efforts can highlight the adverse effects of unilateral tariffs on global trade stability, urging major economies to adhere to multilateral trade rules. Now, actually talking about the Belt and Road Initiative, we know Kenya represents a key partner in terms of the BRI development in Africa.

What do you think BRI has brought to Kenya over the years? True. Kenya signed the Belt and Road Initiative or became a signatory in 2017. And the BRI

has had a significant impact on Kenya. It has been bringing both opportunities, but also there have been challenges. Let's be factual. On the positive side, it has led to the substantial infrastructure development such as the Nairobi Expressway, the Mombasa Nairobi Standard Gauge Railways. And these projects have improved connectivity, facilitated trade and boosted economic growth in Kenya and neighboring regions.

Additionally, the BRI has fostered closer Sino-Kenyan relations with initiatives like educational opportunities, skill transfers, and particularly railway technology enhancement. Now, this has contributed to human capital development and strengthened bilateral ties. Now, what are the concerns?

some people have voiced concern about the quality of infrastructure and labor practices and the West has been harping on a debt burden.

But you see, China is not going to let any country which is a member of the BRI to become dependent on China. Instead, it is looking for a mutually beneficial partnership. Therefore, Kenya's strategic location and growing economy make it a pivotal player in the BRI's expansion in Africa.

Yeah, especially if we think about the historical colonial system, where it's essentially about the core versus the periphery, sacrificing the periphery to serve the interests of the core. But that's really not the way that the BRI is working, I guess. Now, some people say President William Ruto's visit to China is a sign of Kenya's pivot away from

its traditional allies, so to speak, like the United States or some European countries. Is this how you see it? And do you see any intention from China, from the Chinese government, to try to compete with Western powers in Africa in general?

You see, Ding Heng, you got to call a spade a spade. Now, this is a fact that in his, you know, pre-election manifesto and his speeches, William Ruto was seen as leaning towards the West. And in fact, he had even indulged in a little bit of criticism about China.

But when reality dawned upon him and the West turned away its attention and its support for Kenya in particular and about Africa in general, the wisdom of reaching out to time-tested friends like China dawned upon him. And President Ruto's current visit to China, it has sparked discussions about Kenya's shifting alliances.

But you see, analysts like me, we believe that this trip, which focuses on securing funding for infrastructure projects and strengthening economic ties, it reflects a strategic pivot amid waning Western support. Now, with U.S. imposing tariffs and reducing aid, Kenya is, as I mentioned earlier, exploring alternatives and China is its competitor.

largest trading partner. Therefore, it is a natural choice. But look at it from the Chinese perspective. This visit is seen as a symbolic win, showcasing its growing influence in Africa and its ability to counterbalance Western powers.

By deepening ties with Kenya, China not only strengthens its foothold in East Africa, but also reinforces its broader strategy of fostering friendly alliances, which will be mutually beneficial within the global south.

The final question before we let you go, Sultan, because today we are having a third party voice from Pakistan talking about the ties between China and Kenya or the ties between China and Africa. So from a Pakistani perspective, do you find any similarity between China's foreign policy or diplomatic approach to Africa and China's approach to your own country?

Well, indeed, now that you mention it, I noticed that China's diplomatic approach to Africa and Pakistan, they share several similarities. Now, let me name a few. Economic investments. In both Africa and Pakistan, China has invested heavily

heavily in infrastructure projects like under the Belt and Road Initiative in Pakistan. We have the China-Pakistan Economic Corridor, which is a flagship of the BRI. And in Africa, China has funded numerous infrastructure developments such as roads, railways and ports.

Then we talk about development assistance. China provides concessional loans and financial aid to both regions. This assistance is often tied to projects that enhance connectivity and trade benefiting China and the beneficiaries' long-term strategic interests.

Now, there are strategic alliances. China views both Africa and Pakistan as crucial partners in its geopolitical strategy. Pakistan's geographical location offers access to Central Asia and the Middle East while Africa provides vast resources and markets.

A fourth point is soft power diplomacy. In both regions, China employs cultural exchanges, educational programs and media outreach to strengthen ties and foster goodwill. And lastly, in this regard, the non-interference policy of China, which emphasizes mutual respect and non-interference in domestic affairs, which resonates both within the African and Pakistani nations. Now,

While these approaches, we just saw the similarities, you should know that they are tailored to the unique geopolitical and economic context of each region. But China's relationship with Pakistan is deeply rooted in historical and strategic ties, whereas engagement with Africa is on a diverse but

plane involving multiple nations with varying interests. Thank you very much for joining us. Salton Halee, a China observer and a retired Air Force officer based in Pakistan. You're listening to World Today. We'll be back.

You are listening to World Today. I'm Dinghan in Beijing. Chinese Foreign Minister Wang Yi has voiced support to Iran holding nuclear talks with the United States. The senior Chinese diplomat made a remark in a Wednesday meeting with his Iranian counterpart Saeed Abbas Arachi in Beijing.

Wang Yi said China is deeply committed to a diplomatic solution to the Iranian nuclear issue and opposes any form of resorting to force and any form of illegal unilateral sanctions. The senior Chinese diplomat has also added that China appreciates Iran's commitment not to develop nuclear weapons. And for his part, Arakchi thanked China for China's role in terms of promoting a political solution to the Iran nuclear issue.

Iran's foreign minister came to China ahead of a third round of nuclear negotiations between Tehran and Washington due to be held in Oman on Saturday. So joining us now on the line is Dr. Wang Jing, associate professor with Northwest University in Xi'an, China. Thank you very much for joining us.

Thanks for having me. So, Dr. Wang, what is your overall reading of the Chinese foreign minister's message regarding the Iran nuclear issue at a time when Iran and the United States have basically started talking to each other indirectly?

I think the meeting actually transferred and sent several messages. First of all, of course, China will continue to play a very important and actively constructive role in the process of nuclear talks between Iran and the other states. And China also will facilitate and encourage the peace talks between Iran and other countries to hope to

uh maintain the stability in this region and the hopes that uh the iran nuclear issue and this is particularly the dilemma uh will be uh we've witnessed a kind of the breakthrough so that is why i think the the first message is very clear that china hopes to play a very peaceful role in the iran nuclear uh issue and the second message is that uh china uh hopes

uh to uh maintain the the kind of the peace and stability together with event and other international actors uh through the dialogues and the political way rather than the military and and maybe more aggressive and assertive way and strongly oppose any kind of sanctions and unilateralism imposed by other countries

So China hopes that the regional order and the international order could be constructed together with Iran and also with the international community based upon the mutual respect and the mutual equality. And the third of all, that there were some has already been some kind of a mechanism, for example, the Shanghai cooperation mechanism and other mechanisms.

international mechanism, China and Iran will hope to work closely with each other. So China will hope that this kind of mechanism will further enhance the foundation for peace and stability. Now, it seems that one message that the Iranian side has delivered to China this time around is that despite its bitter past experiences, Iran has embarked on a path of diplomacy with goodwill and seriousness.

What do you make of this attitude on Iran's part? I think it's suggested that Iran's talks and Iran's willingness to solve and to settle the Iran nuclear deal is very strong, given that we know that Iran has already shown that its hopes to settle the nuclear issue based upon its own seriousness and very sincere willingness

And also Iran also expresses very strong willingness to end the crisis. I think we may face new opportunities and chances in the future between to end the crisis and divisions between Iran and the United States and also the international community, including China and also other countries, including the European Union, some European countries, as well as Russia, will work together to hope to facilitate this

this kind of the chances to enlarge the chances into the bigger scenario. So that is why I think maybe more opportunities and the more positive, I mean, prospect might emerge in the future that I think maybe more things that should be encouraged further to facilitate this outcome and achievements that could be realized as early as possible.

Meanwhile, in terms of the bilateral ties, both China and Iran have actually demonstrated a commitment towards deepening their mutual trust, political trust, and consolidating their bilateral cooperation and coordination on policies. So with that in mind, do you think the kind of solidarity and unity we are seeing between Beijing and the Tehran can be a force for good for the world order today?

Of course, I think when China and Iran, just like China's positive relations with other Middle Eastern countries and other states, when this kind of the positive relations be upgraded further, I think more opportunities for chance, more opportunities for stability in the international level as well as the regional level could benefit everybody because we know that Iran is important

one of the very leading country in the Middle East with a very prosperous ancient culture. Also China is a very important country in this world and also with a very important and the prosperous cultural and historical

historical background. So that is why I think Iran and China's close relations and their serious trust with each other and their bilateral and further multilateral cooperation, the cooperative mechanism based upon the bilateral relations will further benefit everybody. So that is why I think the relations will then

on the one hand, benefits the two countries, but also on the other hand, it will benefit everybody, not only in the Middle East, not only in Asia, but also, I think, all across the world. We understand back in the year 2021, China and Iran signed a 25-year comprehensive strategic development deal worth about $400 billion, according to some media reports.

So if there can be less tension between Tehran and Washington and subsequently less sanctions by the United States against Iran, how do you think that kind of scenario is going to facilitate the implementation of this particular deal, 25-year deal between China and Iran?

Yeah, you are right. The 25th deal is a very important foundation and the directive principle for China and Iran's bilateral cooperation are covering different fields and different areas between the two sides. And one of the major obstacles for the two countries' bilateral relations is the sanctions imposed by the United States and sanctions also from other Western countries.

So once this kind of sanctions lifted, I think more opportunities might emerge because we know that during the past years after 2021 when the 25-year deal signed,

Some progress has been made, but actually the achievement is not enough. And maybe more things could be done. One of the obstacles preventing this kind of achievement realized could be attributed to the sanctions imposed by the United States and some other Western countries. And once the dilemma around the nuclear deal, nuclear issue be solved and be ended,

within a through the very proper way, I think China and Iran's relation will face a new, of course, a very prosperous and new brightening future. But that depends upon

the decisions from the United States. And also that would be depends upon the decisions made from Tehran. So China will continue to facilitate the possible peace between the two sides and facilitate this kind of chances of opportunities for peace as early as possible.

Yeah, so last weekend's Iran-American negotiation in Rome were said to be quite constructive, according to the Iran's foreign minister, for example. So looking to the near future, looking to the upcoming talks to be held in Oman,

We really wish for the best as well. But thank you very much for joining us, Dr. Wang Jing, Associate Professor with Northwest University in Xi'an, China. You are listening to World Today. I'm Ding Hen in Beijing. We'll be back after a short break. You're back with World Today. I'm Ding Hen in Beijing.

China has announced the successful launch of the country's Shenzhou-20 mission. Astronauts Chen Dong, Chen Zhongrei and Wang Jie will stay in orbit for half a year conducting spacewalks as well as science and technological experiments. Leading the mission is the 46-year-old Chen Dong, a veteran space explorer. The other two crew members are actually on their respective first-ever space flight.

The three astronauts of Shenzhou-19 are scheduled to return to the Earth on Tuesday after completing some handover procedures. So joining us now on the line is Dr. Zhang Fan, Associate Professor of Astronomy with Beijing Normal University. Thank you very much for joining us. So Shenzhou-20, as we know, represents the 35th

flight mission under China's manned space program, and the fifth crewed mission during the application and development stage of China's Tiangong space station. In your opinion, what do these numbers tell us?

So they really tell us that China's man program is really getting very mature, very, very smooth. The thing that China's space program does is it makes very small incremental steps.

each time. So you see large numbers of missions accumulating into something big. If you compare what China has now with the first time when China sent somebody out, the leap is quite significant, but you don't tend to notice that because of these individual small steps.

And also for this particular mission, the space station, it's been working so well. For example, the water management system worked beyond expectations. You don't actually need to bring up additional water. Everything is recycled perfectly. So they're extending the space station from like 10 years of design life to 15 years. So you'll continue to see people going up on regular crew rotations. So this number will go up substantially gradually

as well. So, yeah, so a lot can be expected, that's for sure. So we know the missions of Shenzhou 20 primarily consist of, say, completing an in-orbit rotation with the Shenzhou 19 crew, which are due to return to the Earth on this upcoming Tuesday next week. And in the meantime, they are also going to

conduct some experiments in physics and life sciences. They are going to install some protective equipment against those space debris and

One thing to mention here is that for the first time ever, some planarians have been brought aboard. Here we are talking about a kind of aquatic flat worms known for their regenerative capabilities. So in this particular case, what do you make of the meaning of this particular regeneration experiment involving those planarians?

So basically learning how it does the regeneration is quite important. If we can harness that power and use it on humans, then obviously you can cure diseases and especially injuries quite rapidly. So bringing the worms up into space and see how it behaves in microgravity when exposed to radiation gives you a different environment.

and a different behavior which you can contrast with what you normally observe, and then you can begin to notice what really is important in the whole process. So it's one way of generally knowing how the regeneration works. Another thing is learning how the regeneration gets better or worse in space would also be useful to learn how disease, how injuries get cured.

should an astronaut become injured in space. So that has the view of further longer missions. For example, China is looking at deep space missions and also utilization of low Earth orbit. So all of those involve prolonged stay in space. So you better be able to deal with injuries in those cases.

So somehow I feel like my previous questions are from a layman's perspective, like me, layman like me, but to experts on astronomical studies like you, what issues, what specific issues surrounding Shenzhou 20 are you watching closely in particular?

Right, so for astronomy, this mission doesn't have anything specifically related to astronomy, but there's something very useful. So they're resurrecting the connecting node, the center sphere thing in the space station, as an airlock.

They have a proper airlock at the end of one of the modules, but that's too far away from where they want to work. So they're using that again. And that's useful for astronomy because later on there will be a telescope called Chinese Survey Space Telescope or Chinese Space Station Telescope. So when it goes up there, it will fly behind the space station and then occasionally dock with the station

on that sphere, so the astronauts can go out there, hopefully through that sphere as well, through that connecting node, and do some repair maintenance work on the telescope. So this resurrecting of that sphere as an airlock will be very useful for the telescope. And the telescope itself is going to be vital because it's a survey, it looks

at large sways of sky to learn things about dark energy, dark matter, of galaxies, how they behave. And the comparable telescope, for example, in the US called Roman telescope,

The recent news is that it might get cut. So the Chinese, the CSST, the Chinese telescope becomes even more important once it goes out there. I take your point and very interesting sounds like to me. Now on a different yet somewhat relevant aspect, we know back in February this year, China and Pakistan signed a deal regarding space flights of a Pakistani astronaut named

on China's space station. And on this past Wednesday, China actually unveiled more details in this particular regard. For example, the selection of Pakistani astronauts

is divided into three phases or three stages, and two astronauts will eventually be chosen to participate in training here in China, and one of them will eventually participate in a joint flight serving as a payload specialist. Can you explain more on that? What does payload specialist mean? And in an overarching perspective, what's the...

What do you make of the significance of this cooperation between China and Pakistan? So payload specialist means the astronaut, Pakistani astronaut will be up there doing mostly science work. So he or she will be doing science experiments designed by Pakistani scientists. So that means, you know,

The Chinese Space Station is actually a lab that's open to international scientists. And being able to host astronauts that have their own scientific background is important because science is very international. Expertise is distributed across the world. So this is the next level of bringing the Space Station up as a science lab. And the next thing is in terms of collaboration between China and Pakistan, especially in space,

Pakistan has always been very helpful with manned program because when Shenzhou-19, for example, when they return, they'll pass over Pakistan and monitoring through Pakistan will help

alert their trajectory and they have always been very helpful. And so they have been collaborating very closely and they've graduated from the lower level of collaboration where just trying to do experiments for them onto this most advanced level where you have a national mission level

collaboration and and um and so into the future you know pakistan will be involved in lunar exploration the international lunar research station um so so further integration of the two space programs uh something that's happening right now

right now. So absolutely, this is win-win cooperation and mutual benefits for China and Pakistan to use a geopolitical term or a diplomatic term. But thank you very much for joining us. Dr. Zhang Fan, Associate Professor with Astronomy from Beijing Normal University. Coming up, a new report by the U.S. Central Bank, the Fed, says businesses are already trying to pass tariff costs onto consumers. This is World Today. We'll be back.

From eggs to Hollywood and global trust to monetary stability, America's tariff war against the rest of the world is dearly backfiring on its own people and economy. What are Americans losing due to the U.S. tariff war? U.S. officials have indicated tariffs on China could drop substantially. But how reliable is such a statement? And can it reverse the damage already made?

Welcome back. You are listening to World Today. I am Ding Han in Beijing.

There were growing signs of a slowing down in the U.S. economy. According to the latest Beige Book report from the U.S. Central Bank, the Federal Reserve, more and more districts across the country are seeing slight moderate declines in terms of economic activity. Only five reported any form of growth, and that growth was just a quote-unquote slight. Three districts said conditions were flat, and the remaining four saw activity dip or decline modestly.

The report by the Fed is pointing to a major factor behind this kind of unease, pervasive uncertainty over Washington's ever-shifting tariff policies. Meanwhile, some consumers in America are rushing to buy cars and everyday goods ahead of the expected price increases. However, outside the auto industry, spending was down.

Published eight times a year, the Beige Book is providing a snapshot of economic conditions based on information collected from the Fed's 12 regional banks. So joining us now in the studio is my colleague Ge'Anna. Thank you very much for joining us. With pleasure. So what has the Fed actually said about the status quo of the economy in its latest Beige Book?

The report actually painted a quite cautious picture of the U.S. economy, highlighting growing concerns across its 12 regional districts. And as you pointed out, uncertainty around U.S. international trade policy was pervasive across reports. Several districts reported that economic outlook has worsened considerably, with trade tensions cited as a key driver behind the shift in sentiment.

On jobs, the picture was mixed. Employment was described as "little chintu up slightly," but there were notable declines in government roles and in organizations that rely on public funding, thanks to the restructure of state departments.

Meanwhile, on business front, the firms seemed hesitant to make hiring decisions. The report said that several districts reported firms were taking a wait-and-see approach to employment, and there were even scattered reports of firms preparing for layoffs. Also, prices increased across districts with businesses expecting elevated input costs as a result of the tariff.

Many firms reported receiving notices from their suppliers about rising costs, and more businesses cited plans to pass these higher prices on to consumers. So in short, the book suggests that while the economy isn't in crisis, there's a clear slowdown and a lot of anxiety about what's happening next in the United States.

So actually tariffs were mentioned by 107 times in this particular page book. So how is Washington's trade policy or tariff policy really affecting regional economic activity in America?

You know, tariffs are clearly weighing heavily on the U.S. economy right now. It's just 56 pages in the book. The word tariffs came up 107 times, and that's more than double the last report. And words related to uncertainty showed up 89 times.

That tells us a lot about what's keeping business owners up at night, right? And here's what's happening on the ground. First, tariffs are making things more expensive. A lot of businesses rely on imported goods like parts, materials, equipment. And when tariffs go up, so do their costs.

Some try to absorb it, but others pass it on to consumers. That's why some companies are even raising prices earlier beforehand, just in case more tariffs hit later. Second, consumers are also reacting. The book shows

a talent of two consumers. While car sales are booming in some areas where shoppers rush to buy vehicles ahead of expected price hikes, but non-auto spending is clearly slowing down. Retail demand outside of autos has slumped. And in districts like New York, businesses are reporting a job inactivity as consumers are cutting back, buying less often or going for cheaper options.

as economic uncertainty, especially around tariff, weighs on confidence. Beyond the numbers, the psychological impact is huge too, because business don't like surprises, right? Especially not policy changes that can hit their bottom line. That kind of unpredictability makes them hesitant to invest higher or even stock up. So the list goes on.

The bottom line is tariffs are not just some abstract policy move in the United States today. They are affecting real businesses, real workers, and real consumers all across the United States. Not only for U.S.-based businesses, but I guess for multinational businesses who are seeking investment opportunities in America as well. So in the meantime...

We understand this particular report is also talking about a major impact on America's tourism industry. What is that?

The U.S. tourism sector is taking a real hit. It's not just about the economy, it's also about perception. The trade war launched by the U.S. government, along with incidents of foreign visitors being detained at the border, have made travelers from several countries more hesitant to visit.

This year was supposed to be a strong comeback year for American travel industry, but that optimism is quickly fading because the impact of tariffs and rising tensions have hurt the U.S. global image.

Reports show in March, the number of international tourists visiting the U.S. dropped nearly 12% compared to last year, with Canadian travelers showing the biggest decline. Custom data shows that in the second half of March, the number of foreign arrivals at major U.S. airports plummeted by about 20% year-on-year. Some U.S. media even calling it

a cliff job in tourism. You know, back in December, a UK-based research firm had predicted a 9% increase in international arrivals to the United States by 2025. But just recently, they reversed that forecast, now projecting a 9.4% decline instead. Yeah.

It's not just tourism. Restaurants and hospitality businesses are also feeling the pain. And according to Goldman Sachs, in a worst-case scenario, the job in visitors and boy cuts could shave as much as 0.3% of U.S. GDP this year, which would amount to almost $90 billion. Okay, 9-0. So with what you have elaborated in mind...

What do you make of the structural, or let's use a terminology in terms of economic theory, cyclical challenges facing the U.S. economy right now?

Well, the book gave us a window into both the short-term turbulence and some deeper issues that the U.S. economy is grappling with. On the cyclical side, we're clearly seeing signs of a slowdown. Economic activity has either stopped or slightly declined in more than half of the fast districts.

But there are also some things structural going on. Trade tensions and tariff policies are now a persistent feature of this economic landscape, not just a temporary hiccup. They've created a climate of prolonged uncertainty that businesses are struggling to adapt to.

So in short, the economy isn't just riding out a typical business cycle. It's navigating a deeper shift in how the U.S. engages with the global economy. That structural uncertainty would weigh on growth and investment for a while. Thank you very much for joining us. That was my colleague Ge'an Na. You're listening to World Today. We'll be back.

You are listening to World Today. I'm Dinghan in Beijing. A leading Cambodian scholar is calling for stronger ASEAN solidarity and a more assertive World Trade Organization response in light of Washington's latest round of steep and punitive tariffs on Southeast Asian solar panels.

Dr. King Fee is the Director General with the International Relations Institute at the Royal Academy of Cambodia. In a conversation with my colleague Xu Yaowen, he says Cambodia formally supports a rules-based global trading system. For more details, let's take a listen.

The US Commerce Department has recently announced this new decision to impose tariffs on solar panels from these four Southeast Asian countries. And in the case of Cambodia, it faces the highest tariffs rate. So what's your take on that? And how do you explain why Cambodia was targeted with the highest tariffs?

As you know, this is an impulse. 3,521% tariff on Cambodian solar panel is very, very extraordinarily high.

and raises serious concerns about fairness, about proportionality in global trade, while the US justifies the measure as a response to a potential trade circumvention. The scale of penalty is excessive. To me, it's very excessive, especially for a developing country like Cambodia. We have been expanding our

manufacturing based clean energies and our growing export figure may have drawn attention. However, to single out Cambodia with highest tariff amongst Southeast Asian countries feels disproportionate

It suggests a broader shift in how the US views emerging manufacturing hubs in the region instead of supporting green transitions in global south. This more risk-punishing legitimate growth, Cambodia has made efforts to comply with international trade rules and we believe these measures should be addressed through dialogue, mutual understanding, not extreme punitive actions.

We hope the U.S. will reconsider such blanket policy that may harm partnership and development efforts. From Cambodia's perspective, how will these tariffs impact your country's solar energy sector and its economy as a whole, especially considering the previous 49% tariffs imposed by the Trump administration on Cambodian manufacturing sectors?

I think the new tariff will have a very serious and immediate impact on Cambodia's solar energy sector and its broader economy. First, they will discourage further investment in our clean energy manufacturing, which is a key area of growth and diversification of Cambodia.

Companies facing this tariff may scale back or even close operations. So what happened? It will lead to job losses and reduced exports. This is particularly painful given that many of these projects have long-term plans for sustainability and regional competitiveness.

Moreover, when you alongside the previous 49% tariff imposed on Cambodian governments and manufacturing goods during the Trump administration, I think this new exam reflects a troubling trend. Cambodia is being squeezed

economically from multiple fronts. The component impacts of these trade barriers could stall our effort to move up the value chain and build a more diversified, resilient economy.

We must now urgently look to mitigate these effects by exploring alternative markets, sanctioning regional trade integration and investing in domestic capacity to reduce our reliance on a single export market.

Well, we know the goal of the U.S. government is to bring the manufacturing back to the state. However, we also hear President of the American Chamber of Commerce in Cambodia says in a recent interview that imposing tariffs will absolutely not

bring manufacturing back to the United States because he said here I quote, it's hard to imagine that Americans want to sit down and sew a pair of sweatpants for long hours of the day. What's your take on that?

I totally agree with him that I see Mr. Barnett made a very, very realistic observations. The idea that the high tariff will revise traditional manufacturing in the United States is visible thinking at best. The global economy has evolved and so have labor markets.

The American workers understandably are not eager to return to a repetitive low-wage factory jobs. Tariff may hurt export countries like Cambodia, but they do not automatically lead to job creation in the US. Instead, they often drive up costs for American businesses and customers while disrupting established supply chains.

In the end, neither side wins. Cambodia depends heavily on manufacturing for job and economic growth. This sector provides vital livelihood to thousands of workers. Pursuant to this, a road that progresses without providing meaningful alternatives.

rather than using tariffs as a blunt instrument. I believe in a more constructive approach, investing in innovations, upskilling and fair trade practices

that benefits all sides. Trade should not be a zero-sum game. We need a global strategy that promotes cooperation, not retaliation. We need a multilateral trading system with the WTO at its core.

I think it's time now that WTO must play a more active and assertive role in addressing this trade war, these trade bullies made by the US.

And lastly, Dr. Kim, Chinese President Xi Jinping recently paid a state visit to Cambodia, Malaysia and Vietnam. And during the trip in Cambodia, he urged China and Cambodia to jointly oppose hegemonism and resist protectionism while maintaining an open and cooperative international environment.

And now with the new wave of tariffs targeting Southeast Asia's solar panel industry and its manufacturing sectors, do you anticipate stronger regional unity and cooperation to resist external pressure?

President Sima said during his state visit come at a time when Southeast Asia is facing real economic pressure from external trade policy. The solar panel trip are a clear example of how trade is increasingly used as a strategic tool. In this environment, I do believe that we will see stronger regional unity among ASEAN countries.

who share concerns about fairness, predictability and economic sovereignty.

Cambodia supports an open, rule-based international system. When protectionism escalates, countries naturally look for their neighbors to support. Initiatives like AUSA and the Closer ASEAN-China Corporation provide alternative frameworks for growth and integration.

However, it is important that this unity doesn't become confrontational. It should be about building resilience and balance. Moving forward, dialogue and mutual respect must guide trade policy. That is the only sustainable way to maintain both strong regional ties and global cooperation.

King Phi, Director General of the International Relations Institute with the Royal Academy of Cambodia, talking with my colleague Xu Yaowen. That's all the time for this edition of World Today. To listen to this episode again or to catch up on our previous episodes, download our podcast by searching World Today. I'm Ding Hen in Beijing. Bye for now.