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US considers broad software export ban in response to China’s trade restrictions

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The US is considering restricting software exports to China in response to Beijing’s limitations on rare earth element exports. The Washington administration is evaluating broad restrictions on the sale of products made with American software to China. This measure, still in the draft stage, could affect a wide range of items, from laptops to jet engines.

The US administration is considering imposing comprehensive restrictions on the export of products made with American software to China.

An American official and three other sources familiar with the matter told the Reuters news agency that the proposed measures could cover a wide range of products, from laptops to jet engines. The draft measures are still under review.

Trump’s new trade move

In a statement early in October, US President Donald Trump announced a plan to impose new restrictions on the export of “critical software” to China and to apply a 100% tariff on Chinese-made goods.

Trump shared these decisions on his social media account on October 10, stating that the measures would take effect by November 1.

The President cited Beijing’s new restrictions on the export of rare earth elements as the reason for these steps.

Sources speaking to Reuters reported that the administration has not yet made a final decision. However, the consideration of such a measure indicates that Washington is contemplating a significant escalation of its economic conflict with China.

Two of the sources stated that some US officials favor more limited measures.

Treasury secretary: Every option is on the table

US Treasury Secretary Scott Bessent told reporters at the White House, “Everything is on the table.” Bessent said that any potential restrictions on software exports could be implemented in coordination with G7 countries.

Following this development, US financial markets experienced volatility. The S&P 500 index closed down 0.5%, and the Nasdaq fell by approximately 1%.

“Software is a natural leverage point for the US”

Emily Kilcrease, a former trade official currently at the Center for a New American Security, stated that software is a natural point of leverage for the US.

“I hope they only put threats on the table that they can actually implement,” Kilcrease said.

Kilcrease also noted that implementing such restrictions could be difficult and might provoke a significant backlash from American industry.

Beijing’s response: We will retaliate if the wrong path is taken

A spokesperson for the Chinese Embassy in Washington did not comment directly on the proposed measures but accused the US of exercising “unilateral long-arm jurisdiction.”

“If the US goes down the wrong path, China will take measures to resolutely protect its legitimate rights and interests,” the spokesperson said.

A source close to the matter suggested that the administration might be raising this plan as a negotiating tool to pressure Beijing, without necessarily intending to implement it.

Two other sources reported that narrower versions of the draft are also being considered.

Another person familiar with the issue highlighted the potential global impact of the restrictions, stating, “Everything imaginable is made with American software.”

Could shake global trade

Experts indicate that such a step could significantly impact global trade, especially in the technology sector, and could also impose costs on the US economy.

This proposal is reminiscent of the technology export restrictions the US imposed on Russia following its military intervention in Ukraine in 2022.

At that time, Washington banned the sale of products made using US technology to Moscow.

Trump’s announcements coincided with the period before a planned Trump-Xi Jinping meeting in South Korea and came one day after Beijing imposed new restrictions on rare earth element exports.

In his post, the President accused China of “preparing to implement comprehensive export controls on almost all of its products” and described this policy as a “moral outrage.”

Inconsistent steps in export policies

The Trump administration has shown varying approaches to export controls in recent months. The administration first restricted the shipment of artificial intelligence chips made by Nvidia and AMD to China, then reversed that decision.

At the end of May, after Beijing delayed shipments of rare earth elements to US automakers, Washington imposed new restrictions on chip design software and other products. However, these measures were relaxed in July.

Meanwhile, the Chinese government criticized a recent rule that prohibits US firms from doing business with companies that have a 50% or greater partnership with sanctioned Chinese entities.

Currently, Chinese-made products are subject to an average tariff of 55% in the US.

If Trump’s planned increases take effect, this rate is expected to rise to 155%.

However, in another social media post on October 12, the President stated, “The US wants to help China, not hurt it!!!”

Treasury Secretary Bessent is expected to meet with Chinese Vice Premier He Lifeng in Malaysia this week, ahead of the Trump-Xi meeting.

Diplomacy

CSTO strips Armenia of voting rights over two-year budget debt

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Members of the Collective Security Treaty Organization (CSTO) have stripped Armenia of its voting rights and its ability to appoint representatives to official positions due to a two-year debt to the organization’s budget.

Kremlin Spokesman Dmitry Peskov said, “This decision was taken based on the organization’s charter due to Armenia’s failure to fulfil its obligations for several years.”

Prior to the CSTO leaders’ summit in Moscow, Peskov had stated that member states would “react” to the Caucasus country’s non-participation in the organization’s activities.

Ahead of the Moscow summit, Armenian Prime Minister Nikol Pashinyan said his country’s “interest has run out” regarding the CSTO. Through his press spokesperson, he announced that he would travel to Türkiye on 11 November to attend the United Nations Climate Change Conference (COP31) instead of going to Russia.

The CSTO leaders’ meeting was held with the participation of Russian President Vladimir Putin alongside the leaders of Belarus, Kazakhstan, Kyrgyzstan, and Tajikistan.

The leaders jointly took the decision to revoke Armenia’s voting rights.

At the conclusion of the meeting, the participants also signed a joint declaration.

The declaration stated: “We confirm our unconditional commitment to the goals set out in the CSTO treaty and charter towards creating favourable and stable conditions for the comprehensive development of member states.”

Pashinyan had frozen Yerevan’s de facto participation in the CSTO in February 2024, citing the organization’s failure to aid the Armenian side during the armed clashes in Nagorno-Karabakh in September 2023.

Having referred to the CSTO as a “soap-bubble alliance” since that time, Pashinyan accused the organization’s members of “planning war” together with Baku. He stated that Armenia would not return to active work within the alliance at least “over the next five years”, adding that he would welcome it if the country were expelled from membership.

Relations between Armenia and Russia grew tense once again in the spring of 2026, after Yerevan moved closer to the European Union (EU) and the Kremlin responded with a trade war.

In May, Pashinyan refused to travel to Moscow to attend the Victory Day parade and declared that he did not support Russia on the Ukraine issue.

In response, Putin called on Yerevan to determine its foreign policy course through a referendum, advising Armenian authorities not to forget the fate of Ukraine.

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Diplomacy

US urges Russia to draft proposals for new European security pact

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The US administration has reportedly called on Russia to submit proposals for a prospective security treaty with Europe that would include measures to ease tensions between European nations and Moscow.

According to a report by news site Axios citing sources familiar with the matter, the US side conveyed the request during trilateral negotiations held in Abu Dhabi.

During the talks, US Special Envoy Steve Witkoff and Donald Trump’s son-in-law Jared Kushner suggested that the Russian delegation prepare a fresh proposal outlining its security concerns and demands.

The US delegation reportedly asked that this proposal clarify what kind of “symmetrical steps” Moscow is prepared to take to de-escalate tensions and “provide non-aggression guarantees to Europe”.

Another source familiar with the White House’s approach said the Trump administration aims to run the processes for a new European security architecture and a peace agreement between Russia and Ukraine simultaneously.

Under this plan, the actual implementation of the security understandings would take effect only after the signing of an accord ending the conflict in Ukraine.

Assessing the approach to the process, the source said: “[Ukrainian President Volodymyr] Zelenskyy will not agree to any compromise without knowing what will happen next regarding security guarantees. Putin also wants to see the exact same picture clearly. This is precisely why the security portfolio is so decisive.”

The same official noted that the US will not reach a security agreement with Russia without the support of Europe and Ukraine, adding that Washington will not grant Moscow veto power over European security decisions.

Vladimir Medinsky, aide to the Russian president and head of the delegation in the Ukraine negotiations, previously stated that the fundamental objective was building a comprehensive new security system in Europe.

Medinsky noted that the structure in question must take on the character of “a fair, new, modern Yalta and Potsdam that carries the spirit of Helsinki 1975 and responds to contemporary realities”.

The Russian official argued that if such a system were established, peace lasting for decades, or even centuries, could be secured in Europe.

Russian Foreign Minister Sergey Lavrov also announced that Moscow possesses its own position paper on how a new security architecture in Eurasia should take shape.

Lavrov stated that Russia hopes the Washington administration will “maintain its determination to pursue dialogue aimed at achieving an honest balance of interests where nobody’s security is impaired”.

Russian authorities have repeatedly stated that the country has no intention of attacking Europe.

Pointing out that they have no reason to fight NATO countries, Russian President Vladimir Putin previously said: “We have no interest whatsoever, neither geopolitical nor economic, political nor military.”

In a statement in October, Putin said Russia has no plans to attack anyone “in 2029, in 2030, or in the year 2050”.

On the other hand, Putin claimed that “all NATO countries are fighting Russia” and stated that the Russian military is currently the most combat-ready armed force in the world.

Following the contacts in Abu Dhabi, Kushner announced that he and Witkoff would travel to Moscow.

Explaining that they plan to meet Putin during the visit to discuss European participation in negotiations aimed at resolving the conflict, Kushner argued that the parties could make “far greater progress” if the Russian leader consents to such involvement.

Yury Ushakov, aide to the Russian president, stated that the US special envoys will arrive in Moscow on 12 November, with the planned meeting with the Russian president scheduled for the first half of the day.

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Diplomacy

Vance leads indirect push for US-Iran ceasefire and nuclear talks

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US Vice-President JD Vance has been personally involved over the past two weeks in indirect talks with Iran aimed at securing a fresh ceasefire and restarting nuclear negotiations.

According to Axios, Vance’s intense engagement indicates that he has taken it upon himself to extract the US from the conflict, which he views as responsible for the Republican Party’s shocking losses in this week’s elections.

This elevates the latest round of indirect talks to the highest echelons of the administration.

US officials and regional sources state that Trump is currently willing to let diplomatic efforts run their course to see whether any agreement is achievable.

Asked by reporters on Friday what his message was to Iran, Trump said, “We are talking to them.”

According to sources with direct knowledge of the matter, Vance speaks almost daily with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, Pakistan’s Chief of Army Staff Field Marshal Asim Munir, and other mediators regarding the negotiations with Iran.

White House envoy Steve Witkoff and Jared Kushner, President Trump’s adviser and son-in-law, are also involved in the process.

Sources say Vance and the Qatari and Pakistani mediators have been discussing the possibility of holding a working-level technical meeting between the US and Iran in the coming days, though this has not yet materialized.

Before the war began in late February, Vance was among the most sceptical voices in Trump’s inner circle on the issue, advocating instead for a diplomatic solution.

In April, he led the US negotiating delegation at the Iran summit held in Islamabad and was personally involved in the talks that yielded a memorandum of understanding (MOU) signed between the US and Iran in June.

Vance subsequently headed the US delegation during a series of direct talks with Iran in Switzerland.

Two weeks ago, Vance sent a letter to Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, proposing that direct negotiations resume.

Rezaei is one of the closest advisers to Iran’s Supreme Leader, Mojtaba Khamenei.

Iranian officials noted that Vance’s letter generated positive momentum toward restarting talks.

On Wednesday, Vance said the war was the primary reason for the Republicans’ repudiation at the polls.

Sources involved in mediation efforts report that while progress is being made, the process is moving very slowly.

On Friday evening, the prime minister of Qatar said, “Over the past few weeks, we worked with our colleagues in the US administration who have a sincere intention to contain the situation and de-escalate. Thanks to them and the voices of reason in Tehran, we prevented the situation from spinning out of control.”

The prime minister added that discussions with the Trump administration continued following the midterm elections, though they were not as active as in previous days “because there are other matters.”

Nevertheless, he noted that the US intention to find a diplomatic resolution “remains ongoing” and emphasized that an agreement is possible.

On Friday morning, Trump and the Emir of Qatar discussed Qatari efforts to bridge differences between the US and Iran as part of an accord.

According to a statement from his office, Sheikh Tamim emphasized the necessity of “pursuing dialogue and diplomatic channels to resolve differences, prevent the region from facing further escalation, and ensure freedom of maritime navigation as well as the security of energy supplies.”

Separately, Trump confirmed on Friday that the US military conducted a strike on an anti-aircraft missile launcher on Qeshm Island in the Strait of Hormuz after it fired a missile at a US fighter jet.

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