Huawei, ZTE Seal 5G Deals In Vietnam After US Tariffs, As Ties With China Warm

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Summary:

China's leading telecommunication firms Huawei and ZTE,have won a string of contracts this year to supply 5G equipment in Vietnam, in another sign of Hanoi's strengthening bonds with Beijing, stirring concern among Western officials, seven people with direct knowledge of the situation told Reuters.

Huawei, ZTE Seal 5G Deals In Vietnam After US Tariffs, As Ties With China Warm_1

Huawei, ZTE Seal 5G Deals In Vietnam After US Tariffs, As Ties With China Warm_2

· Vietnam embraces Chinese tech amid strained US relations

· ZTE, Huawei win major contracts as Vietnam shifts approach

· Western officials cast doubts on tech cooperation with Hanoi, sources say

For years, Vietnam was seen as reluctant to use Chinese technology in sensitive infrastructure, but in recent months it has embraced Chinese tech companies as sometimes frosty relations with its northern neighbour have warmed while ties with Washington have soured over tariffs on Vietnamese goods.

While Sweden's Ericsson (ERICb.ST), opens new tab and Finland's Nokia (NOKIA.HE), opens new tab secured contracts for Vietnam's 5G core infrastructure, with U.S. chipmaker Qualcomm (QCOM.O), opens new tab providing network equipment, Chinese companies have begun winning smaller tenders with state-owned operators, so far unreported public procurement data shows.

A consortium including Huawei was awarded a $23 million contract for 5G equipment in April, weeks after the White House announced tariffs on Vietnamese goods. ZTE has won at least two contracts, one last week, totalling more than $20 million for 5G antennas. The first publicly disclosed deal came in September, a month after U.S. tariffs took effect.

Reuters could not establish whether the timing of these wins was linked to U.S. tariffs, but the deals raised concerns among Western officials.

The exclusion of Chinese contractors from Vietnam's digital infrastructure, including undersea fibre-optic cables, has long been identified by Washington as a key condition for support in advanced technologies.

Huawei and ZTE are banned from U.S. telecom networks as an "unacceptable risk" to national security. Sweden and other European countries have similar restrictions.

Ericsson declined to comment on Chinese companies, but said it was "fully committed to support its customers in Vietnam."

Huawei, ZTE, Nokia, Qualcomm, the U.S. embassy in Vietnam, China's embassy, Sweden's foreign ministry or Vietnam's tech ministry responded to requests for comment.

VIETNAM-CHINA TIES WARM

The unaligned Southeast Asian nation is a crucial battleground in the competition for global influence. Its proximity to China has made it a major industrial hub for multinationals such as Apple, Samsung and Nike, which rely on Chinese components and Western consumers.

Under Western pressure, Vietnam long took "a wait-and-see approach" to Chinese technology, said Nguyen Hung, a specialist in supply chains at RMIT University Vietnam. But "Vietnam has its own priorities," he added, noting the new deals could spur deeper economic integration with China.

Hanoi and Beijing have made progress recently on other sensitive projects, including cross-border rail links and special economic zones close to the Chinese border, which Vietnam had previously discarded as security risks.

Huawei lost multiple bids this year on 5G equipment in Vietnam, according to tender data. But it has cooperated on technical services, and signed an agreement in June on 5G technology transfers with Viettel, Vietnam's army-owned main telecom operator, according to Vietnam's defence ministry.

Viettel did not respond to a request for comment. One person at the company said Chinese technology was cheaper. The sources declined to be named because the information they shared was not public.

WESTERN CONCERNS

The Chinese contracts have been discussed in at least two meetings of senior Western officials in Hanoi in recent weeks, diplomatic sources said. In one meeting, a U.S. official warned they could undermine trust in Vietnam's networks and jeopardise access to U.S. advanced technology.

In a meeting this month officials explored whether areas using Chinese technology could be sealed off from the rest of the network to prevent data leaks, one of the sources said.

But suppliers of antennas and equipment could still gain access to network data, said Innocenzo Genna, a telecommunications lawyer, noting "Western contractors may face the awkward prospect of working alongside firms they do not trust."

Source: Reuters

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Justin

Political

Economic

The Trump administration is reviewing permanent residency status of immigrants from 19 countries

The Trump administration has ordered a full review of permanent residency status — so-called "Green Cards" — of immigrants from 19 countries, in the wake of the attack on two US National Guard personnel in Washington, DC.

An Afghan national who entered the US in 2021 after working with American military and intelligence services in Afghanistan has been arrested in connection with Wednesday's shooting near the White House.

On Thursday, US President Donald Trump confirmed the death of one of the two National Guard members who was shot.

In response to the shooting, Joseph Edlow, director of the US Citizenship and Immigration Services (USCIS), said on X: "I have directed a full scale, rigorous reexamination of every Green Card for every alien from every country of concern."

Afghanistan, Iran, Somalia, Libya, Yemen, Cuba, Venezuela among countries listed

The full-scale review of residency status, at the behest of President Donald Trump and carried out by the USCIS, comes after the suspect from Wednesday's shooting was identified as Afghan national Rahmanullah L.

The 19 countries under scrutiny were named in a June proclamation, which had initially imposed entry restrictions on nationals from states deemed deficient in screening and vetting protocols.

Among the countries listed are Afghanistan, Iran, Somalia, Libya and Yemen, as well as Cuba, Venezuela, Chad, and Eritrea.

Critics warn the policy risks penalizing hundreds of thousands of lawful permanent residents based solely on nationality.

Whether the review will lead to revocations or deportations remains unclear.

For now, the administration frames it as a protective measure aimed at national security in light of the DC attack.

Source: DW

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Olivia Brooks

Economic

Core consumer prices in Japan's capital rose 2.8% in November from a year earlier, data showed on Friday, exceeding the central bank's 2% target and keeping alive market expectations for a near-term interest rate hike.

The increase in the Tokyo core consumer price index (CPI), which excludes volatile fresh food costs, compared with a median market forecast for a 2.7% rise. It followed a 2.8% gain in October.

A separate index for Tokyo that strips away both fresh food and fuel costs - closely watched by the Bank of Japan as a measure of demand-driven prices - rose 2.8% in November from a year earlier after a 2.8% increase in October.

The BOJ exited a decade-long, radical stimulus programme last year and raised short-term interest rates to 0.5% in January on the view Japan was on the cusp of sustainably hitting its 2% inflation target.

While consumer inflation has exceeded the BOJ's 2% target for well over three years, Governor Kazuo Ueda has stressed the need to tread cautiously in further rate hikes on uncertainty over the impact of U.S. tariffs on Japan's economy.

Source: Investing

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Olivia Brooks

Economic

Tokyo consumer price index inflation remained unexpectedly steady in November amid high food prices, with underlying inflation also remaining well ahead of the Bank of Japan's annual target.

Tokyo core CPI, which excludes volatile fresh food prices, grew 2.8% year-on-year in November, government data showed on Friday. The print was slightly above expectations of 2.7% and remained steady from the prior month's reading.

A core CPI reading that excludes both fresh food and energy prices remained steady at 2.8% in November, above the BOJ's 2% annual target. The print is closely watched as a gauge of underlying inflation by the central bank.

Headline Tokyo CPI inflation read flat at 2.7%.

Friday's print showed Japanese food price inflation remained mostly upbeat, with rice prices continuing to increase at an outsized pace. Dairy prices also increased sharply in the month.

The country is grappling with a prolonged rice shortage due to a mix of poor harvests, an aging farming population, and some policies against importing the grain, which pushed up food prices. Higher food prices were in turn a major driver of CPI inflation this year.

Tokyo CPI inflation usually acts as a bellwether for national inflation, with November's print indicating that Japanese inflation is likely to remain sticky. It also comes after a series of firm inflation prints through the second half of 2025.

Sticky inflation gives the BOJ more impetus to hike interest rates, with the central bank having recently signaled it will consider raising rates in its December meeting.

But rate hikes by the BOJ put it at odds with Prime Minister Sanae Takaichi's government, which has broadly called for looser monetary conditions and more fiscal spending to support economic growth.

Source: Investing

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Adam

Commodity

Gold has had a banner year in 2025, gaining more than 58% and outperforming the market by leaps and bounds. For context, the S&P 500 is up about 14%, while Bitcoin has lost around 6% (with Bitcoin-leveraged stocks performing far worse than the crypto itself).

Among precious metals, silver has outshone gold with a 78% year-to-date (YTD) gain. Still, gold appears well-positioned to sustain its rally into 2026—fueled in part by President Donald Trump’s return to power and the market’s reaction to his policies.

Volatility Is Once Again on the Rise

Precious metals enjoy strong runs during stretches of heightened volatility. That’s because volatility causes investors to engage in flights to safety, reallocating capital from riskier asset classes like stocks to safe-haven assets like gold.

And volatility has been a hallmark of Trump’s second administration. From Inauguration Day to March 10, volatility—as measured by the Chicago Board Options Exchange’s CBOE Volatility Index CBOE: VIX—increased by 85% as rumors of the president’s tariff plans began to emerge.

The VIX then pulled back 20% by the end of March, before skyrocketing to a five-year high during the market’s so-called tariff tantrum in April, when the index jumped 135% the first week of April.

Why Gold Loves Trump as Much as Trump Loves Gold_1

The index settled down by 70% by the end of September after the president walked back tariffs against numerous countries. But since then, it has increased 35%, raising concerns about another bout of heightened volatility through the end of the year.

The SCOTUS Tariff Decision Looms

A critical legal development could further impact gold’s trajectory: the U.S. Supreme Court is currently reviewing whether Trump has the authority to impose tariffs without Congressional approval.

If the Supreme Court rules in favor of Trump, tariffs—with or without congressional approval—remain, which would have the potential to further erode the purchasing power of the US dollar and drive gold prices higher as a result.

But if the court rules against Trump’s trade policies and the administration is forced to reverse its tariffs, that too could be a boon for gold. On Sunday, Fortune reported: “President Donald Trump’s administration is working behind the scenes on fallback options if the Supreme Court strikes down one of his major tariff authorities.” Any such moves are likely to sustain investor anxiety and, in turn, demand for safe-haven assets.

Foreign Policy and Geopolitical Instability Drive Gold Prices

Despite campaign pledges to reduce global conflict, Trump’s second term has not delivered meaningful geopolitical de-escalation. The Russia-Ukraine war, now entering its fourth year, continues with no end in sight.

Additionally, despite Trump brokering a ceasefire between Israel and Hamas in early October, warfare in that corner of the world hasn’t ceased, with near-daily strikes continuing in the Gaza Strip. Since the Hamas attack on Oct. 7, 2023, the price of gold has risen more than 125%.

More recently, the Trump administration has ramped up military activity in the Caribbean, signaling potential intervention in Venezuela. The USS Gerald R. Ford aircraft carrier is already positioned near the South American nation, and approximately 15,000 U.S. troops are in the region, with B-52 and B-1 bombers conducting simulated bombing exercises near Venezuela’s airspace—a significant escalation.

Geopolitical instability has historically boosted demand for gold, and the current environment shows no signs of reversing that trend.

Dollar Weakness and Rate Cuts Are Strengthening Gold’s Bull Case

Two more price drivers for gold are currency devaluation and interest rate cuts. The US Dollar Index is down nearly 8% from its YTD high, which it hit a week before Trump’s inauguration.

Trump’s tariff announcements, which fueled the first stage of the USD’s decline this year, have raised inflation expectations.

At the same time, soft economic data—including rising unemployment, increasing layoffs, and weak nonfarm payrolls—have already resulted in the Federal Reserve cutting rates twice this year.

If current Fed Chairman Jerome Powell is replaced with a dovish Trump ally when his term ends in May 2026, more interest rate cuts could be in store next year.

Lower interest rates would appeal to gold bugs, since interest rates and gold prices have a historically inverse relationship. When the former decreases, the latter tends to increase since yield-producing assets lose their luster in a lower-rate environment.

In those cases, investors traditionally turn to gold for the precious metal’s upside potential. Both of those outcomes are likely if the Fed continues down a path of looser monetary policy.

Source: investing

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Adam

Commodity

Oil prices have steadied in the last couple of days following Tuesday’s news-driven drop when reports of a peace deal between Ukraine and Russia hit the wires. The recovery comes despite a larger-than-expected build in US oil inventories. Price action, therefore, suggests that most of the bearish news might already be factored in.

But so long as there is no compelling reason for prices to rally, the longer-term outlook on oil remains negative. Indeed, a potential peace deal between Ukraine and Russia—whenever that arrives – could mean more supplies hitting a market already saturated. Negotiations are trundling along between Kyiv, Moscow, and Washington, and that might take a while.

So, nothing is signed yet, and that explains why prices have stopped falling for now. Mind you, even if a peace doesn’t come to fruition, crude’s upside still looks capped. Between excessive supply and flimsy demand growth, the prices remain tilted to the bearish side.

Russia-Ukraine Potential Peace Could Hurt Oil Prices Further

Markets have been slow in pre-pricing peace because of the nature of the uncertainty, but peace could eventually mean eased sanctions on Russia. And if sanctions are relaxed, we might see more Russian barrels sloshing back onto a global market that’s already awash with crude.

Thus, any real progress towards peace this week could add pressure to oil prices, as investors price in larger supply into a market that frankly doesn’t need it. The simple arithmetic of crude markets is this: more oil + steady or falling demand = lower prices. And the sums right now aren’t flattering.

The Supply Problem

Let’s rewind to before the diplomatic chatter took centre stage this week regarding the Ukraine war. West Texas Intermediate (WTI) had already been on a multi-week losing streak, languishing below the psychologically important $60.00 mark. The OPEC+ has been releasing previously withheld output, producing more oil when demand is hardly crying out for it.

Meanwhile, American oil producers have been pumping too. The result is oversupply, and it is this concern dominating headlines and pressuring prices.

So, with the OPEC+ loosening the taps and US shale adding to the flow, prices will be finding it difficult to stage anything more than brief relief bounces – like the ones we have seen repeatedly in the past. Until something changes fundamentally, this supply pressure should keep prices under pressure.

Demand: Not So Great Either

Now, supply is very much the elephant in the room, but we can’t ignore demand entirely. The US economy has been sending mixed signals, with recent economic prints coming through a tad soft. Investors are squinting at the data, wondering if oil consumption will hold up into next year. The global demand picture isn’t exactly inspiring confidence either.

Should demand weaken further whilst supply continues its upward march, we may well see the market slide deeper into disequilibrium. Crude prices would therefore need to adjust lower to find new equilibrium. Until the world economy shows signs of picking up pace—or supply meaningfully pulls back—the demand story may add incremental pressure to an already fragile price environment.

WTI Technical Analysis and Trade Ideas

The chart of crude oil has been painting a textbook downtrend: lower highs, lower lows. The main moving averages and the trend lines all have negative slopes. The recovery off the lows should therefore be taken with a pinch of salt until we see a clear bullish reversal – and some positive oil news to go with it.

Crude Oil Faces Stiff Resistance Near $60 With Downtrend Poised to Resume_1

So, where are the key levels on WTI futures?

$59.00 is the initial level of resistance, with a bearish trend line coming in slightly above it

$60.00 per barrel remains the big psychological resistance level for WTI

Clear these two levels and $62.00 would come into focus next

Support is seen around $57.25 area initially

Most recent low was around $56.00 in October, making it the next logical target for the bears

April low at $55.12 is the April low and the main downside objective as it comes in just ahead of the next psychological level of $55.00.

Unless fundamentals shift sharply, and there’s no major evidence of that just yet, the continuation of this downtrend in the weeks ahead wouldn’t be a shock to the system.

Source: investing

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Adam

Commodity

Rising ETF demand, steady central-bank buying, and the growing need to hedge with real assets will push gold prices to $4,500 per ounce by mid-2026, according to commodity strategists at Morgan Stanley.

The investment bank noted that after four years of net selling, ETF flows have “nearly fully reversed,” with this year’s inflows the strongest since 2020, and they expect this trend to continue as interest rates fall.

The analysts said that central banks “are still adding gold to their reserves,” while jewelry demand is stabilizing, supporting broad-based physical demand. They added that a pullback would create buying opportunities, and that investors are reassessing gold’s role as a hedge amid inflation uncertainty and shifting macro risk.

Morgan Stanley said gold is its top commodity pick for the coming year.

On Oct.22, just one day after gold posted its largest daily loss in 12 years, Morgan Stanley said they still expect the gold rally to continue, and they revised their 2026 price forecast up to $4,400 per ounce, a significant increase from the previous estimate of $3,313.

“Investors are watching gold not just as a hedge against inflation, but as a barometer for everything from central bank policy to geopolitical risk,” said Morgan Stanley Metals & Mining Commodity Strategist Amy Gower. “We see further upside in gold, driven by a falling U.S. dollar, strong ETF buying, continued central bank purchases and a backdrop of uncertainty supporting demand for this safe-haven asset.”

Morgan Stanley Research sees ongoing support for the rally coming from a number of areas.

“For the first time since 1996, gold now accounts for a larger share of central bank reserves than U.S. Treasuries—a powerful signal of confidence in the metal’s long-term value,” they noted. “Exchange-traded funds (ETFs) have also been strong buyers of gold, signaling renewed interest from institutional investors. ETFs backed by physical gold posted a record inflow of $26 billion in the third quarter. Their total assets under management ended the quarter at $472 billion, also a record.”

And after two years spent largely on the sidelines, retail investors are also joining the gold rush.

“As markets expect the U.S. dollar to weaken on prospects of slower growth in the world’s largest economy, many investors are shifting their safe-haven portfolios, moving from dollar-denominated assets to gold,” the analysts said. “Additionally, a weaker dollar makes gold more affordable for international buyers.”

Fed interest rate cuts are providing another boost to gold prices, with Morgan Stanley noting that since the 1990s, gold prices have averaged a 6% increase in the 60 days following the start of a Fed rate-cutting cycle.

“With all these factors, it probably comes as no surprise that gold is right up at the top of our order of preference among commodities,” Gower said.

Source: kitco

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