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U.S. Secretary of State Marco Rubio urged China Sunday to help deter Iran from shutting down the Strait of Hormuz, a crucial trade route, following American strikes on Iranian nuclear sites.

"I encourage the Chinese government in Beijing to call them about that because they heavily depend on the Strait of Hormuz for their oil," Rubio said on Fox News.

Analysts have said Iran may opt to retaliate to Washington's early Sunday attack by shutting the Strait, a waterway through which one-fifth of global oil output passes.

"If they do that, it will be another terrible mistake. It's economic suicide for them if they do it, and we retain options to deal with that," Rubio added.

"But other countries should be looking at that as well, it would hurt other countries' economies a lot worse than ours. It would be, I think, a massive escalation that would merit a response. Not just by us but from others," he said.

Meanwhile, Iran has threatened bases used by the US military, with an advisor to Iran's supreme leader Ayatollah Ali Khamenei saying they will be considered a "legitimate target for our armed forces."

However, it remains to be seen whether the US strikes will push Tehran to de-escalate the conflict or to widen it further.

China has joined Russia and a chorus of Arab states in condemning the U.S. attacks, saying that they "escalate tensions in the Middle East."

Malaysia's government is verifying media reports that a Chinese company may be circumventing U.S. export curbs on high-end AI chips by using servers housing Nvidia chips based in the Southeast Asian country.

The Wall Street Journal reported that Chinese engineers had flown to Malaysia in March carrying hard drives containing data to build artificial intelligence models in Malaysian data centres using advanced Nvidia chips.

The engineers planned to bring the AI models back to China, the report said.

The United States has cracked down on exports of advanced semiconductors to China, including those made by U.S. tech giant Nvidia, as it seeks to retain a competitive edge over the technology.

A Malaysian trade ministry statement on Wednesday said it was "verifying the matter with relevant agencies if any domestic law or regulation has been breached".

The ministry said that while servers using Nvidia and AI chips are not classified as controlled goods under Malaysian law, the country "will cooperate with any government that requires assistance in monitoring trade in sensitive goods under the export control of their respective countries".

Data centres in Malaysia "are free to make their own commercial decisions," the statement said, but added that it was illegal for any person or firm to circumvent export controls.

The trade ministry said it "will always act firmly against any company operating in Malaysia, including those involved in semiconductor and AI industries, that violates Malaysian and international trading regulations".

Singapore in March charged three men with fraud in cases reportedly linked to the transfer of AI-powering Nvidia chips to China.

The Singaporean government said servers potentially containing AI-powering Nvidia chips shipped from the United States to Singapore had ended up in Malaysia, but that their final destination was unknown.

Local media linked their cases to the alleged movement of Nvidia chips from Singapore for use by Chinese AI firm DeepSeek.

In January, DeepSeek released its R1 chatbot, shaking the global tech market and claiming its tool can match the capacity of top U.S. AI products for a fraction of their costs.

Chinese Foreign Minister Wang Yi said Wednesday his country was concerned that the conflict between Israel and Iran "may get out of control", warning that the region could slide into an "abyss."

Israel and Iran exchanged fire again on Wednesday, the sixth day of strikes between the regional rivals, fuelling fears of a drawn-out conflict that could engulf the Middle East.

"Israel's acts of disregarding international law and international rules have caused the situation in the Middle East to suddenly become tense, and China is also deeply concerned that the situation may get out of control," Wang told his Egyptian counterpart in a phone call Wednesday, China's foreign ministry said.

The same day, in a separate call with Oman's foreign minister, Wang said the two countries "cannot sit idly by and let the region slide into an unknown abyss". He said reaching a ceasefire agreement was a "top priority."

China and other world powers have pushed to find an off-ramp to the hostilities, which began after Israel on Friday launched strikes on Iran.

The United States, however, has called for Iran's "unconditional surrender", with US President Donald Trump on Wednesday saying Washington may still take part in the conflict.

Iran's Supreme Leader Ayatollah Ali Khamenei said Wednesday his nation would never surrender and warned the United States of "irreparable damage" if it intervenes, while Israel said it had destroyed the internal security headquarters in Tehran.

Almost 800 Chinese citizens have been evacuated from Iran since Israel launched military strikes against the country last week, Beijing said Wednesday.

"Currently... 791 Chinese nationals have been relocated from Iran to safe areas," foreign ministry spokesman Guo Jiakun said at a regular news conference.

"More than 1,000 other people are in the process of relocating and withdrawing," Guo added.

And some Chinese nationals have also safely evacuated from Israel, he said.

"China expresses its thanks to the relevant countries for providing full support and assistance," Guo said.

Iran said early Wednesday it fired hypersonic missiles at Israel in the latest round of overnight strikes between the arch foes, hours after Donald Trump demanded the Islamic Republic's "unconditional surrender".

The U.S. president insists Washington has played no part in ally Israel's bombing campaign, but also warned Iran that his patience is wearing thin as the conflict enters a sixth day.

World powers have pushed to find an off-ramp, hoping to prevent the conflict from spiraling into a region-engulfing war.

Trump fueled speculation about American intervention when he made a hasty exit from the G7 summit in Canada, where the leaders of the club of wealthy democracies jointly called for a "de-escalation" of the conflict.

Back in Washington on Tuesday, Trump demanded the Islamic republic's "unconditional surrender".

He also boasted that the United States could easily assassinate Iran's supreme leader.

"Further escalation of tensions in the Middle East is not in the interests of any side," Guo said on Wednesday.

And in a thinly veiled reference to the United States, he said "countries that have a particular influence on Israel should especially uphold an objective and fair position, assume their due responsibilities and play a positive and constructive role in easing the situation."

Chinese President Xi Jinping said Tuesday he was "deeply worried" by Israel's military action against Iran, as China also accused U.S. leader Donald Trump of "pouring oil" on the mounting conflict.

Following decades of enmity and a prolonged shadow war, Israel launched a surprise aerial campaign last week against targets across Iran, saying it aimed to prevent its arch-foe from acquiring atomic weapons -- an ambition Tehran denies.

The sudden flare-up in hostilities has sparked fears of a wider conflict, with Trump urging Iran back to the negotiating table after Israel's attacks derailed ongoing nuclear talks.

Trump also issued an extraordinary warning on his Truth Social platform: "Everyone should immediately evacuate Tehran!"

Asked about Trump's remarks, Chinese foreign ministry spokesman Guo Jiakun said: "Fanning the flames, pouring oil, making threats and mounting pressure will not help to promote the de-escalation of the situation, but will only intensify and widen the conflict.

"The Chinese side calls on all relevant parties, especially countries with special influence on Israel, to shoulder their responsibilities, take immediate measures to de-escalate tensions, and prevent the conflict from expanding and spreading."

China's President Xi Jinping called for de-escalation of the conflict "as soon as possible" during a meeting with Uzbekistan's President in Kazakhstan on Tuesday, state media reported.

"Israel launching military action against Iran has caused a sudden escalation in tension in the Middle East, China is deeply worried about this," Xi said, according to Xinhua.

"We oppose any act that infringes upon the sovereignty, security and territorial integrity of other countries."

China's embassies in Iran and Israel also urged Chinese citizens to leave the countries "as soon as possible", after Israel and Iran traded heavy strikes.

"The Chinese Embassy in Iran has coordinated with the Iranian side to facilitate outbound travel and reminds Chinese citizens currently in Iran to leave the country... as soon as possible", the embassy in Tehran said in an online statement.

It suggested border crossings with Turkey, Armenia, and Turkmenistan as possible routes out.

China's embassy in Israel urged citizens to depart "in the direction of Jordan" as it warned that the conflict was "continuing to escalate".

"Much civilian infrastructure has been damaged, civilian casualties are on the rise, and the security situation is becoming more serious," it said in a post on WeChat.

The United States is pressuring Vietnam to reduce reliance on Chinese technology in its exports to the U.S. market ahead of a July 8 tariff deadline, as redirected Chinese goods flood Southeast Asia and drive record trade deficits across the region, and fuel both internal economic pressures and growing U.S. trade demands.

As part of its decoupling strategy, Washington is pressing Hanoi to reduce Chinese content in high‑tech exports to the U.S. market, threatening tariffs of up to 46% if targets are not met.

Talks involve major contractors for Apple, Samsung, Meta, and Google. Vietnamese firms warn they will need significant time and technological investment to shift supply chains.

According to reports, the U.S. has submitted a "long" list of "tough" requests to Vietnam, including measures that would reduce the use of Chinese-origin components in manufacturing and increase domestic verification of origin and production.

China’s Export Surge Worsens Trade Deficits

Key Southeast Asia economies are recording ballooning trade deficits with China in early 2025, as redirected Chinese exports surge across the region and fuel internal economic pressures.

The only country in Southeast Asia with a trade surplus is Malaysia, with $700 million from January to May 2025.

Thailand registered a $21.1 billion trade deficit with China from January to May 2025, with imports reaching $41.6 billion against exports of only $20 billion, according to official data. In May alone, the monthly trade deficit reached $3.6 billion.

Indonesia also saw its trade deficit climb to $4 billion in the first five months of the year. Imports from China surged to $33.4 billion, while exports to China grew to $29 billion, according to Chinese official data. Indonesian Trade Minister Budi Santoso has publicly rejected suggestions that redirected exports from China are driving the deficit.

Vietnam, from January to May 2025, imported $76.8 billion worth of goods from China, making China its largest source of imports, while exports to China grew to $35 billion, resulting in a deficit of $41 billion.

According to China's official trade data, trade between China and ASEAN reached $420.5 billion in the first five months of 2025, a 9.1% increase from the same period last year.

External Pressure: Transshipment Accusations

A growing share of Chinese goods originally intended for the United States is reported to be being rerouted through Cambodia, Vietnam, and Indonesia.

Transshipment has become a central issue in Washington’s tariff talks with countries in Southeast Asia like Vietnam and Thailand, which have both committed to tightening regulations on certificates of origin.

While customs duties and port fees yield short‑term revenue, U.S. accusations of transshipment are complicating bilateral talks and risk extending punitive tariffs to legitimately produced exports.

The United States has accused several Southeast Asian economies of enabling transshipment by relabeling or rerouting Chinese goods to evade tariffs.

These accusations are straining trade talks and weakening the negotiating position of countries like Vietnam, which are now under pressure to strip Chinese components from their exports.

If negotiations fail, harsher tariff penalties may fall not only on rerouted Chinese products but also on legitimate exports from domestic producers.

Internal Pressure: Flood of Chinese Imports

Cheaper Chinese products are displacing local producers. Factory closures, mass layoffs, and falling tax revenues have heightened social and fiscal strains, forcing governments to bolster unemployment support and emergency safety nets.

In Indonesia, the government warned that job cuts in the textile sector could surge from 80,000 in 2024 to 280,000 in 2025, saying 60 textile companies are planning layoffs that could affect up to 200,000 employees, and that's before the tariff negotiations.

By May 20, the government recorded 26,455 layoffs. However, labor unions estimate the actual figure at 60,000, while employer groups suggest 40,000, revealing likely underreporting.

In Thailand, auto parts manufacturers have shut down as a result of rising competition from Chinese electric vehicles.

China's embassy in Israel on Tuesday urged its citizens to leave the country "as soon as possible", after Israel and Iran traded heavy strikes.

"The Chinese mission in Israel reminds Chinese nationals to leave the country as soon as possible via land border crossings, on the precondition that they can guarantee their personal safety," the embassy said in a statement on WeChat.

"It is recommended to depart in the direction of Jordan," it added.

After decades of enmity and a prolonged shadow war, Israel launched a surprise aerial campaign last week against targets across Iran, saying they aimed to prevent its arch-foe from acquiring atomic weapons -- an ambition Tehran denies.

The sudden flare-up in hostilities has sparked fears of a wider conflict, with U.S. President Donald Trump urging Iran back to the negotiating table after Israel's attacks derailed ongoing nuclear talks.

Beijing's embassy said on Tuesday the conflict was "continuing to escalate."

"Much civilian infrastructure has been damaged, civilian casualties are on the rise, and the security situation is becoming more serious," it said.

Chinese cybercrime networks are expanding operations into Africa as crackdowns intensify in Southeast Asia, according to a recent report from the United Nations Office on Drugs and Crime (UNODC). The agency describes the shift as part of a broader trend in which crime “spreads like a cancer,” into regions with weaker enforcement and limited digital safeguards.

The report points to the rapid proliferation of online fraud operations, including cryptocurrency scams and phishing schemes, moving from countries like Myanmar and Cambodia into new footholds in Africa—particularly Nigeria.

A recent case publicized June 12 by the WeChat public account West Africa Chinese Voice illustrates the trend: Nigeria’s Economic and Financial Crimes Commission (EFCC) arrested 177 Chinese nationals in Lagos and Abuja between December 2024 and January 2025.

The suspects were allegedly running scam centers under the guise of corporate offices, where local Nigerians were trained to carry out online investment frauds—many following the “pig-butchering” model, which builds trust with victims before luring them into fraudulent crypto investments. Authorities seized hundreds of SIM cards, high-performance computers, and prewritten scam scripts during the raids.

The escalating war between Iran and Israel was a top story over the weekend on China's largest news portals and state-run media channels, generating significantly more buzz online than other international conflicts.

As is customary, Chinese media narratives took their cues from the government's official statements on the war that frame Israel as the aggressor, Iran as the victim, and the United States as the instigator operating behind the scenes.

The country's largest news platforms, including the Communist Party-run newspaper Global Times, state broadcaster CCTV, and popular news platforms like Tencent News and Phoenix Info, among others, all featured interviews with various Middle East scholars from around the country who focused a lot of their attention on the U.S. role in the conflict:

• U.S INDULGENCE: “The position of Western countries beyond the U.S. is worth watching. They call for restraint but don’t condemn Israel. In practice, this is giving Israel a free pass. Israel is taking advantage of the indulgence of the U.S. and the West” — Han Jianwei, Professor at Shanghai International Studies University (PHOENIX NEWS -- in Chinese)

• U.S. RELUCTANCE: "The U.S. is unlikely to have supported Israel's strike on Iran's nuclear facilities. Of course, even with American involvement, it remains unclear whether Iran's nuclear facilities can be eliminated, let alone if Israel acts alone.  So it's clear that the United States did not and will not participate this time" — Li Shaoxian, President of the Chinese Academy of Arab Studies at Ningxia University (TENCENT NEWS -- in Chinese)

• U.S. PRESSURE: "Militarily and diplomatically, Iran is under siege. At the negotiation table, it sees itself at a disadvantage and believes this is not the right moment for talks. The U.S. is well aware of this, yet still attempts to force Iran into compromise" — Su Xiaohui, Deputy Director of the China Institute for International Studies (GLOBAL TIMES — in Chinese)

WHY IS THIS IMPORTANT? Just as Fox News and conservative media in the United States perform an important role in validating White House positions, the same is true in China where the media and these scholars are essential in bolstering domestic public opinion to support the leadership's support of Iran and criticism of the United States.

Israel is much less important to them since there's a widely-held perception in the Chinese academic and analyst communities that the Jewish State largely acts as a proxy for the United States in the region.

China urged Iran and Israel to "immediately" take steps to reduce tensions on Monday after Tehran unleashed a barrage of missile strikes on Israeli cities and Israel struck military targets deep inside Iran.

"We urge all parties to immediately take measures to cool down the tensions, prevent the region from falling into greater turmoil, and create conditions for returning to the right track of resolving issues through dialogue and negotiations," Chinese foreign ministry spokesman Guo Jiakun said.

Israel's surprise assault on Iran last week, launched after decades of enmity and a prolonged shadow war fought through proxies and covert operations, has touched off the most intense fighting yet and triggered fears of a lengthy conflict that could engulf the Middle East.

Israel says its attacks have hit military and nuclear facilities and killed many top Iranian commanders and atomic scientists, although a senior U.S. official said on Sunday that U.S. President Donald Trump told Israel to back down from a plan to kill supreme leader Ayatollah Ali Khamenei.

China's top diplomat Wang Yi held phone calls with his Israeli and Iranian counterparts on Saturday, the foreign ministry said, in which he made clear to both Beijing's support for Tehran.

China enjoys close ties with Iran, being its largest commercial partner and the main buyer of its oil with Tehran still under crushing U.S. sanctions.

Guo said on Monday "all relevant parties should immediately take steps to put the brakes on the escalation and to cool down the tensions."

"Force cannot bring lasting peace," he said.

"China will continue to maintain communication with the relevant parties, and promote peace and encourage dialogue, to prevent further turbulence in the region," he said.