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March 4, 2025

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Sector Rotation: Financials Climb as Consumer Discretionary Slips

While the players in the top five sectors have remained the same, we can see some movement in their relative positions. Communication services continue to lead the pack, but financials have climbed to second, nudging consumer discretionary down to third. Technology and utilities are holding steady at fourth and fifth, respectively.

In the bottom half of the ranking, consumer staples has overtaken industrials, claiming sixth place. The remaining positions, from eight to eleven, have stayed the same.

  1. (1) Communication Services – (XLC)
  2. (3) Financials – (XLF)*
  3. (2) Consumer Discretionary – (XLY)*
  4. (4) Technology – (XLK)
  5. (5) Utilities – (XLU)
  6. (7) Consumer Staples – (XLP)*
  7. (6) Industrials – (XLI)*
  8. (8) Energy – (XLR)
  9. (9) Real-Estate – (XLRE)
  10. (10) Healthcare – (XLV)
  11. (11) Materials – (XLB)

Weekly RRG

This week’s observations on weekly sector rotation:

  • Communication services remain the lone wolf in the leading quadrant, with its recent node pointing back up — a positive sign for its continued dominance.
  • Financials are on the cusp of re-entering the leading quadrant, showing an apparent turnaround.
  • Consumer discretionary (XLY) is in the weakening quadrant but still has the highest RS-Ratio reading, potentially giving it ample room to reverse course.
  • Technology has retreated to the lagging quadrant — not a great look, imho.
  • While also in the lagging quadrant, Utilities shows a strong RRG heading and is close to moving into the improving quadrant.

Daily RRG

Switching to the daily RRG, we get some additional context for these rankings:

  • Communication services is in the weakening quadrant with a negative heading, but its tail is short and its RS-Ratio remains strong.
  • Financials is also in the weakening quadrant but starting to curl back up — it’ll be a close call whether it moves through lagging or not.
  • Consumer discretionary is deep in the lagging quadrant, with the weakest RS-Ratio reading on the daily chart.
  • Technology is in the leading quadrant but losing relative momentum.
  • Utilities show strength in the leading quadrant, moving higher on the RS-Ratio scale.

Notably, consumer staples are making waves on the daily chart, with a strong move into the leading quadrant.

Spotlight on the Top Five

Let’s get back into the trenches and look at the individual charts for our top performers:

Communication Services – XLC

The sector is maintaining its rhythm of higher highs and higher lows, though there’s been some near-term deterioration. The old resistance line is now acting as support — a level to watch in the coming week.

Relative strength remains robust, with the raw RS line trending higher and the RS-Ratio confirming this upward movement. The RS-Momentum line appears to be bottoming around the 100 level, which could signal a potential turnaround.

Financials – XLF

Financials had a stellar week, closing at the top of its range and flirting with all-time highs. The raw RS line has already broken to new highs, and both RRG lines are turning upward. This sector is well-positioned to claim the top spot in the coming weeks potentially.

Consumer Discretionary – XLY

Things are looking a bit dicey for consumer discretionary. We’ve broken below the previous low, establishing a series of lower highs and lower lows. Support levels just below 210 and around 200 are now critical. The RS line has stalled and is moving lower, dragging both RRG lines down.

This sector must hold current price levels and reverse its relative strength decline to maintain its top-five status.

Technology – XLK

Technology is in a similar boat to consumer discretionary. It’s approaching a double support area around 220, with a rising support line and horizontal support from previous lows. The RS line is rolling over and breaking down — if it breaches the lower boundary of its range, we could see more relative downside. Both RRG lines have topped out and are moving below 100, creating that negative heading on the RRG.

Utilities – XLU

Utilities are bucking the trend of technology and consumer discretionary. It’s slowly but surely continuing its upward trajectory, maintaining that series of higher highs and higher lows. While still range-bound, the relative strength chart is starting to trend higher, pushing both RRG lines upward. It’s still in the lagging quadrant, with both RRG lines below 100, but the heading is strong.

Portfolio Performance Update

Unfortunately, we’ve lost the outperformance that was built up over the last few weeks. We’re now neck-and-neck with the benchmark—the RRG portfolio has gained 1.62% since inception, while the SPY has gained 1.68% over the same period.

#StayAlert, –Julius


The news is that the United States will have a Cryptocurrency reserve. How this will occur is still murky, but Bitcoin surged on the news. Carl and Erin give you their opinion on Bitcoin’s chart setup and possible future movement.

Carl opens the trading room with a review of the DP Signal Tables which are showing new deterioration. The Bias Table shows numerous Bearish Biases.

The market overview was next up with a complete review of the SPY under the hood as well as coverage of Bitcoin, the Dollar, Gold, Gold Miners, Bonds, Yields and Crude Oil. Carl even looked at the Silver chart.

As always Carl walked us through the Magnificent Seven daily and weekly charts. There are plenty of bearish configurations.

After questions, Erin was up sharing her thoughts on Sector Rotation. Defensive sectors are still leading the pack while Technology and other aggressive groups look bearish despite Friday’s rally. Erin dove into the under the hood chart of Technology.

Erin finished the trading room going over viewer requests including SMCI and PFE.

01:30 DP Signal Tables

04:59 Market Overview

10:30 Bitcoin

12:00 Market Overview (continued)

15:45 Magnificent Seven

21:30 Questions (including Bonds and Gold long-term)

31:26 Sector Rotation

41:19 Symbol Requests

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Red Mountain Mining Limited (“RMX” or the “Company”) is pleased to advise that today it will commence conducting a high-resolution ground magnetics and targeted pXRF assay program at the Company’s 100%-owned Kiabye Gold Project in Western Australia. The Company will aim to define potential gold bearing structures for conventional wet geochemical sampling.

HIGHLIGHTS

  • Survey has launched today in the northern Kiabye area – an area which has previously reported anomalous gold-in-soil
  • Kiabye Gold Project covers 23km2 of strike and remains underexplored – providing considerable upside potential for RMX
  • The survey will target structures amenable to gold bearing fluids with target areas to be followed up with detailed pXRF assaying
  • The program will take approximately 12 days, covering to 10km2 – results of the magnetic survey are anticipated in mid to late March
  • Defined anomalous areas will be targeted for wet chemistry sampling with lab results expected in late March.

The program is focused on the most northern section of the Kiabye licence (E59/2893), which is one of the four exploration licenses that make up the project area. This straddles the Kiabye Greenstone Belt in the Yilgarn‘s Murchison Domain, southeast of Mount Magnet. The survey will total 10km2 and will be split into three areas of focus, based on priority (see Figure 1).

The program is expected to take 12 days, with coverage to depend on the rate of surveying, across both magnetics and pXRF assay follow-up. This will assist the Company in defining the three target areas, based on sample results (see Figure 2). A summary of each area is as follows:

  • Area 1 covers a number of anomalous gold in soil samples, hosts two NNE (North- North-East) striking faults and is located in an area of unverified alluvial and insitu gold.
  • Area 2 contains numerous gold in soil samples with several samples of >20ppb to 47ppb Au. The block is also cut by two faults striking NNE and NS. The area also contains RMX rock sample KPR020 which assayed at 96ppbAu and 2.6ppm Ag.
  • Area 3 contains two areas with samples of >20ppb Au. The west is cut by a major NNW to NS faults marking the boundary between the Kiabye Greenstone Belt and Granites to the west. The second fault strikes NNE and is believed to extend north into Area 2.

Significance of Gold-in soils

In consideration of the highly diluting soil profile in the area, any soil sample with ≥20ppB Au is considered anomalous therefore Area 2 and 3 contain several areas with anomalous gold-in-soils.

Ground Magnetic Survey

The Red Mountain Mining team and contractors will conduct the geophysical survey initially at 100m east – west line spacing and 20m reading intervals. The data will be processed and interpreted in the field and where structures of interest are identifying these areas will be infilled to 50m line spacing. The main targets for gold mineralisation include shear zones and faults interpreted in the data. The surveys will collect data from 110 to 213-line kilometers depending on the number of infill lines conducted.

Project background:

The Kiabye gold project is located in WA and covers a strike length of 23km² of the greenstone belt (Figure 3) with less than half covered by exploration samples from historical explorers and only around 7% having been covered by prior holders.

Click here for the full ASX Release

This post appeared first on investingnews.com

Invion Limited (ASX: IVX) (“Invion” or the “Company”) is pleased to announce that it has successfully completed a new share placement (Placement) to raise $2.0 million to advance research and development in Photosoft as a potential treatment for a range of cancers.

Highlights:

  • Invion raises $2M via a share placement with the new shares priced at $0.14, a 2.5% premium to the 30-day VWAP and nil discount to last closing price
  • Investors in the placement will also receive one unquoted three-year option (exercise price of $0.28) for every new share
  • Proceeds from the placement will be used to:
    • Recruit from a second site for Invion’s Phase I/II skin cancer trial
    • Initiate a Phase I/II anogenital trial with the Peter MacCallum Cancer Centre
    • Fund general working capital
  • A successful outcome in the anogenital trial may enable orphan drug designation in the US to fast-track trials in the rare disease indication(s)
  • Multiple milestones on the horizon, including:
    • Results from the skin cancer trial
    • Initiation & progress on the anogenital trial
    • Updates on the glioblastoma, oesophageal cancer and HPV studies that are fully funded by Invion’s partners

The offer price for the new shares of $0.14 per share represents a 2.5% premium to the 30-day volume-weighted average price (VWAP) and a zero discount to its last closing price before the Placement announcement on 27 February 2025.

The lead manager for the Placement, Blue Ocean Equities (Lead Manager), received strong demand for the Placement, which was originally seeking to raise $1.5 million from sophisticated investors.

The Placement will comprise of two tranches:

  • Tranche 2: Placement of the balance of shares, conditional on the Company obtaining shareholder approval at the Extraordinary General Meeting (EGM) expected to be held in April 2025.

Investors in the placement will receive one unquoted attaching option for each new share with an exercise price of $0.28 and will expire three years from issue, subject to shareholder approval at the EGM.

The Lead Manager is to receive a capital raising fee of 6% on the proceeds of the Placement and will also receive a tranche of options to an equivalent value of approximately $80,000 using a Black Scholes options pricing formula with the following inputs:

  • Exercise price – each option will have an exercise price which is a 50% premium to the 15-day VWAP calculation as at the date of the placement.
  • Expiry – the options will expire 2 years from the date of issuance.
  • Volatility rate – 100%.
  • Risk Free Rate – 5%.

The Company will lodge an appendix 3B with the ASX with these details as soon as the number of options has been calculated. These issue of these options is subject to the approval of shareholders at the EGM.

Use of Proceeds from the Placement

Proceeds from the raise will be used to recruit from a second clinical site for Invion’s Phase I/II non-melanoma skin cancer (NMSC) trial, initiate a Phase I/II anogenital trial with the Peter MacCallum Cancer Centre (Peter Mac) and for general working capital.

Invion plans to leverage the safety data from the NMSC trial to accelerate a pathway to the anogenital trial as both trials are using the same topical formulation of INV043. Anogenital cancers include penile, vulva and anal cancers, which are rare diseases.

A successful outcome in the anogenital trial may enable orphan drug designation with the U.S. Food & Drug Administration (FDA). The granting of an orphan drug designation will give Invion a faster and more cost-effective path to commercialise Photosoft for the treatment of the rare disease(s) in question.

Thian Chew, Invion’s Executive Chair and CEO, commented:

“We are delighted to welcome new shareholders to Invion via the Placement, many of whom are sophisticated investors in the biotech space that are supporting the Company after reviewing our achievements and the multiple milestones in our horizon.

“In addition to the skin and anogenital cancer trials, these milestones also include updates on the glioblastoma, oesophageal cancer and human papilloma virus studies that are fully funded by our partners.”

This announcement was approved for release by Invion’s Board of Directors.

Click here for the full ASX Release

This post appeared first on investingnews.com

AgTech Company accelerates strategic focus on Industrial Hemp Carbon Credits business

Hempalta Corp. (TSXV: HEMP) (‘Hempalta’ or the ‘Company’) has released its financial results for the three months ended December 31, 2024. The Company’s unaudited interim condensed consolidated financial statements (the ‘Financial Statements’) and related management’s discussion and analysis (the ‘MD&A’) for the three-month period are available on www.sedarplus.ca.

Financial Results

As Hempalta sharpens its focus on the high-growth carbon credit market, the Company experienced a transition period in its financials during the last quarter.

  • Cost of Sales for the three months ended December 31, 2024 decreased 38% to $84,162, compared to the same period in 2023, primarily due to lower production volumes and cost efficiencies as the Company streamlined its operations to align with its carbon credit focus.

  • Net Loss for the three months ended December 31, 2024 was $432,281 ($0.00 per share), a 13% improvement over the same period in 2023, reflecting disciplined cost management and a one-time gain on debt settlement.

  • General & Administrative Expenses for the three months ended December 31, 2024 increased 79% year over year, primarily due to transaction fees associated with acquiring the remaining 49.9% interest in Hemp Carbon Standard Inc. (‘HCS‘), as well as lower expense allocations to cost of goods sold due to decreased production activity.

Financial Position & Shareholder Support

As of December 31, 2024, Hempalta had $182,768 in cash and $287,726 in working capital.

While the Company completes its planned focus on HCS over the balance of the second quarter, major shareholders Darren Bondar and Prairie Merchant Corporation (the ‘Lenders‘) have extended a one-year term loan in the aggregate amount of $325,000 at 12% interest (the ‘Loan‘). In connection with the Loan, the Company will issue a loan bonus to the Lenders of an aggregate of 5,416,667 common share purchase warrants (the ‘Warrants‘), exercisable for a period of one year with an exercise price equal to $0.06 (the ‘Bonus‘). The Warrants are subject to a hold period under Canadian securities laws, expiring four months and one day from the date of issuance. The Loan and the Bonus are subject to the approval of the TSX Venture Exchange. This Loan provides additional working capital to support Hempalta’s growth in the carbon credit market.

As the Lenders are insiders of the Corporation, the issuance of the Warrants to the Lenders is considered to be a related party transaction within the meaning of Exchange policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security holders in Special Transactions (‘MI 61-101’). The Company intends to rely on exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the Lender participation.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the ‘U.S. Securities Act’), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, ‘U.S. persons,’ as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.

Industrial Hemp Carbon Credits Platform

With full ownership of HCS, Hempalta is now poised to scale a unique, low-cost carbon credit platform focused on industrial hemp. This milestone marks a pivotal step in the Company’s evolution toward becoming a leader in nature-based carbon removal solutions.

The demand for high-integrity carbon credits continues to rise as corporations seek solutions to meet their net-zero commitments. Industrial hemp offers a unique advantage in carbon sequestration due to its rapid growth cycle and ability to store CO2 both in biomass and soil.

HCS has pioneered a precision quantification methodology using remote sensing and AI-driven monitoring, ensuring the accurate measurement and verification of CO2 removal. The platform empowers industrial hemp farmers to monetize regenerative agriculture practices while providing corporate buyers with premium carbon credits backed by ISO 14064-2 certification.

By participating in the voluntary carbon market, industrial hemp farmers can diversify revenue streams while contributing to global climate action. The completion of the HCS acquisition enables Hempalta to:

  • Expand its network of regenerative hemp farms
  • Issue high-integrity carbon credits at scale
  • Enhance verification standards for carbon removal
  • Strengthen partnerships with corporate buyers seeking trusted, nature-based solutions

Outlook

Darren Bondar, President and Chief Executive Officer of Hempalta, said, ‘In our first years of operation, we focused on scaling industrial hemp processing and consumer packaged goods. As demand for sustainable solutions grows, we have shifted toward the rapidly expanding voluntary carbon market. Our acquisition of 100% of HCS solidifies our ability to offer scalable, high-integrity carbon credits with a low-capital model. By collaborating with farmers and corporate buyers, we are positioned to drive sustainability while generating long-term growth for Hempalta and our investors.’

To further align with this strategic shift, the Company is also marketing its turnkey hemp production facility and processing equipment, and exploring licensing opportunities for its CPG product lines.

Investor Updates

Investors can follow Hempalta’s journey as it pioneers high-integrity carbon removal solutions by subscribing to the mailing list for investor updates at www.hempalta.com where they can also view the latest corporate presentation and company announcements.

About Hempalta

Hempalta Corp. (TSXV: HEMP) is a nature-based carbon credit provider leveraging industrial hemp’s potential to sequester carbon. Through its subsidiary, Hemp Carbon Standard Inc. (HCS), the Company develops methodologies and supports farmers in monetizing regenerative agriculture practices. In addition to HCS, Hempalta Processing Inc. manages the Company’s established hemp-based product lines, which are available for licensing.

Learn more at www.hempalta.com or contact Investor Relations at invest@hempalta.com.

For more information, please contact:

Darren Bondar
Chief Executive Officer
Hempalta Corp.
Email: info@hempalta.com

Sales or Partner Opportunities:

Cecil Horwitz
Business Development
Email: cecil.horwitz@hempalta.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Information

This news release contains statements and information that, to the extent that they are not historical fact, may constitute ‘forward-looking information’ within the meaning of applicable securities legislation. Forward-Looking information is typically, but not always, identified by the use of words such as ‘will’, ‘expected’, ‘plans’, ‘enable’, ‘positions’, ‘aim’ and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Forward-Looking information in this news release includes, but is not limited to, statements regarding: the Company’s plans with respect to the HCS platform, including the scaling of such program; the integration of HCS positioning the Company to deliver premium-quality carbon credits efficiently to corporate buyers; fluctuations in the capital resources of the Company; the demand for carbon credits increasing; industrial hemp farmers being able to diversify their revenue streams by participating in the voluntary carbon market; the acquisition of HCS positioning the Company to tap into the expanding carbon credit market using a low-capital, scalable model; the Loan, the Bonus and the approval of the Exchange of both the Loan and the Bonus; the use of proceeds from the Loans; and the Company offering its turnkey hemp production facility and processing equipment for sale, while also exploring one-time licensing opportunities for its CPG product lines. Such forward-looking information is based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to: the ability of the Company to successfully implement its strategic plans and initiatives and the expected benefits therefrom; the anticipated benefits of the HCS acquisition and of the business of HCS; the anticipated benefits from offering its turnkey hemp production facility and processing equipment for sale, while also exploring one-time licensing opportunities for its CPG product lines; the ability of farms and sites currently signed up by HCS to grow hemp; required regulatory approvals; the ability of the Company to effect its proposed strategy and business plans; the approval of the Exchange with respect to the Loans and the Bonus; and the ability of HCS to sell carbon removal credits through the voluntary credit market. Although the Company believes that the assumptions and factors on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct or that any of the events anticipated by such forward-looking information will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Actual results may vary from those currently anticipated due to a number of factors and risks including, but not limited to: the risk that the benefits from the HCS acquisition, and the ownership and operation of the HCS business, will not be as anticipated; the risk that the Company will not be able to successfully offer the turnkey hemp production facility and processing equipment for sale, and if done successfully, the risk that the benefits therefrom will not be as anticipated; receipt of necessary regulatory approvals including the Exchange; risks associated with general economic conditions; conditions in the carbon credit markets; adverse industry events; the risk that farms and sites currently signed up by HCS will not grow or be able to grow industrial hemp as anticipated or at all; the Company has limited financial resources and may require additional funds to continue operating; the Company may not generate sufficient revenue to maintain operations; the forecasts and models of the Company could be inaccurate; the risk that HCS may not be able to sell carbon removal credits as anticipated or at all; adverse weather conditions affecting the growth of hemp; future legislative, tax and regulatory developments; the risk factors included in the Company’s other continuous disclosure available on SEDAR+ at www.sedarplus.ca; and the ability of management to execute its business strategy, objectives and plans. The forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise, except as required by applicable law.

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243209

News Provided by Newsfile via QuoteMedia

This post appeared first on investingnews.com

Japan is fighting a forest fire that has damaged dozens of homes and forced hundreds of residents to evacuate in a northeastern coastal city.

The fire has burned about 2,100 hectares (5,190 acres) of forest in Ofunato since it started Wednesday, according to the Fire and Disaster Management Agency.

The agency said at least 84 homes have been damaged, and over 1,200 people evacuated. The fire has subsided in some areas. More than 2,000 troops and and firefighters have been deployed from across the country.

A man was found dead on a road Thursday, and authorities are examining if the death was linked to the fire, the agency said.

The northeastern regions, including Ofunato, have had their driest winter since 1946, when the Japan Meteorological Agency started collecting data.

This post appeared first on cnn.com

Warning: This report contains details of sexual assaults. Reader discretion is advised.

Armed forces in Sudan’s ongoing civil war are perpetrating systematic sexual violence against young children, with one-year-olds the youngest survivors of rape, according to a new report from UNICEF, the United Nations’ (UN) children’s agency.

The UNICEF report, released Tuesday, said that at least 221 cases of child rape had been recorded since the beginning of 2024, along with an additional 77 reported cases of sexual assault against children.

Four one-year-olds were among those who survived sexual assaults, while another 12 survivors were children under the age of 5, according to the report. Of the rape survivors, 66% are girls and 33% are boys.

The data, compiled by gender-based violence service providers in Sudan, only represent a “small fraction” of the total child rape cases, UNICEF said, noting that survivors, their families and even frontline workers are often unwilling or unable to report the crimes due to challenges around accessing services, cultural stigmas and the fear of retribution from armed groups.

The report, which detailed firsthand accounts of sexual violence against children from December 2024 and January 2025, found that children were sexually abused during invasions of cities, while fleeing danger, while being held against their will or in detention – and sometimes in exchange for food or other essential supplies.

Sudan has been gripped by war for nearly two years, as forces loyal to two rival generals fight for control of the country.

The generals – Abdel Fattah al-Burhan, leader of the Sudanese Armed Forces (SAF), and Mohamed Hamdan Dagalo, also known as Hemedti, who heads the paramilitary Rapid Support Forces (RSF) – have viciously competed for territory in a country still reeling from the massacre of tens of thousands of people in the early 2000s and the displacement of millions more.

Since April 2023, more than 28,700 people have been killed according to the Armed Conflict Location and Event Data initiative, and more than 11 million have been forced to flee their homes.

UNICEF received firsthand reports of “armed men storming homes and demanding at gunpoint that families surrender their girls, often while violently attacking the family members or raping the girls in front of their loved ones,” according to the report.

Frontline workers have seen an increase of violence against internally displaced people living in shelters or who are sheltering at informal sites, UNICEF said, noting that the risk of sexual violence is high within these communities, especially against children.

One rape survivor, a woman who asked to be called Omnia, told UNICEF that she was detained by armed men for 19 days. She said that she became suicidal after hearing young girls being raped every night.

“After nine at night, someone opens the door, carrying a whip, selects one of the girls, and takes her to another room. I could hear the little girl crying and screaming. They were raping her… She is still just a young child. They only release these girls at dawn, and they return almost unconscious,” Omnia said.

Catherine Russell, UNICEF’s executive director said the testimonies should “shock anyone to their core and compel immediate action,” adding that “widespread sexual violence in Sudan has instilled terror in people, especially children.”

The report noted that violence is not limited to only one part of Sudan and that cases of child rape were reported in nine states across the country.

The SAF controls the eastern and northern parts of the country, according to the British government, while the RSF controls western, southern and central Sudan – including the Darfur region.

This post appeared first on cnn.com

As President Donald Trump unleashes sweeping changes across the US government and overturns decades of American foreign policy, Chinese leader Xi Jinping is preparing to hold a major political gathering designed to project something else: tightly-controlled stability.

Thousands of delegates are arriving in the Chinese capital this week for the country’s “two sessions” annual meeting, a highly choreographed spectacle where Xi and his officials will broadcast China as a major power that’s confident in its direction and steadily advancing its tech prowess and global rise.

That metaphoric split screen between the two powers will be in the spotlight on Wednesday morning in Beijing, when Trump’s first address to Congress will roughly coincide with a state-of-the-union-like speech delivered by China’s No. 2 official Li Qiang at the opening meeting of the National’s People Congress (NPC), which rubber-stamps decisions already made behind closed doors.

There, Li is expected to announce China’s yearly targets for economic growth and military spending — and lay out how Beijing plans to continue its economic growth and transformation into a technological powerhouse in the face of mounting pressure from the United States.

This year’s two sessions, which includes roughly weeklong meetings of both the NPC and the country’s top advisory body, gets underway as the White House is due to double the additional tariff on all Chinese imports to the US to 20% from 10%. Those duties sit atop existing tariffs on hundreds of billions in Chinese goods.

It’s unclear how Beijing will respond to the latest move. Last month, it took what were seen as modest retaliatory steps against 10% duties by slapping 15% tax on certain types of American coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, large-displacement cars and pickup trucks, while restricting exports of certain raw materials.

Despite the challenges, analysts aren’t bracing for any major policy surprises or U-turns. True decision-making power lies with the Chinese Communist Party, whose authority cannot be challenged in the country – and Xi, the party’s most powerful leader in decades.

The increased tariffs — and the threat of more economic and tech controls to come — are casting a long shadow over China’s two sessions, which observers will also be watching for signs on how Beijing will continue to address its rumbling economic difficulties at home.

And signs point to Beijing staying the course on its leader’s strategies to bolster innovation, industry and self-sufficiency to steel itself against frictions ahead: all while projecting that, in China, it’s business as usual.

We must “face difficulties head-on and strengthen confidence” amid growing external challenges, the Communist Party journal Qiushi quoted Xi as saying in an article released Friday that’s meant to set the tone for the gathering.

High-tech prowess

China is entering this year’s two sessions buoyed by a surge of confidence and national pride in its tech sector.

Earlier this year, privately owned Chinese AI firm DeepSeek stunned Silicon Valley with the breakout success of its latest open-source large language model. Adding to that milestone: Beijing’s long-term plans for achieving global dominance in green technologies have borne fruit, with its top electric vehicle maker rivaling Elon Musk’s Tesla.

China’s leaders are expected to continue to prioritize investment in innovation and making the world’s second-largest economy self-sufficient in high tech. Xi and his cadres see high-end chips, quantum computing, robotics and AI as critical to powering economic growth and upgrading Chinese manufacturing.

“China needs to find a new engine for its economic development. The old model, the big infrastructure, construction–driven (one), is probably not going to work … and (the high tech sector) is the most feasible path China has,” said political scholar Liu Dongshu of the City University of Hong Kong. “China will prioritize this – and US pressure makes this more urgent.”

Last month, Washington said it was considering expanding restrictions on US investment in sensitive technologies in China and would continue to restrict Chinese investment in strategic American sectors.

But it’s not all negative pressure, Liu added, as China “sees an opportunity to replace the United States in some parts of the world order.”

“China may think that since (DeepSeek’s success) it can be the leader in global AI over the US, or similarly in areas like climate change, where electric vehicles might be China’s signature policy to solve the climate change problem,” he said.

Observers will also be watching closely what steps Beijing may take to unleash private industry to advance innovation as it gears up for the potential of more restrictions from the US.

Xi sent a strong signal that China needed its entrepreneurs to step up in this fight last month, hosting the country’s top tech executives in Beijing, where he proclaimed it was “prime time” for private enterprises “to give full play to their capabilities.”

Beijing followed the meeting with steps to improve market access for private firms and discussion of a Private Economy Promotion Law, which could be passed in the months, if not the days, ahead – seen as a significant course correction following a years-long, sweeping regulatory crackdown on private industry.

‘Doubling down’

The two sessions gathering is also set, as in past years, to reflect Xi’s increasingly tight grip over China’s political system. The leader used the 2018 NPC meeting to pave the way for him to stay in power indefinitely, with the removal of the presidential two-term limit in the Chinese constitution.

Last year, the scrapping of a longstanding annual press conference led by the country’s second highest-ranking official was widely seen as another sign of Xi’s control over the official narrative – and eliminated a rare chance for journalists to interact with a top Chinese official. The event is not expected to resume this year.

This year, the gathering is expected to again highlight how united the political apparatus is around his vision for the future, despite the country’s economic hurdles.

“The NPC this year will really be in the context of continuing to derisk China’s rise and really hardening its posture against global uncertainties,” including in Beijing’s relationship with the US and Europe, said Nis Grünberg, a lead analyst at MERICS think tank in Germany.

As China “doubles down” on this approach, deepening “the role of the party and the core of the party – Xi Jinping – to steer this whole process is more important than ever to the leadership,” he said.

China’s slowing economy has been roiled by a property sector crisis and high local government debt, while foreign investment has cratered, consumption has flagged and young people struggle to find jobs.

China earlier this year reported 5% economic growth in 2024, a figure viewed with heavy skepticism by many external observers, and analysts say it’s likely to float a similar number for its GDP target this year. Signs for how Beijing plans to address these challenges will also be closely watched, after a raft of policy adjustments since last summer were seen as falling short.

In the days ahead, Beijing may unveil new efforts to boost consumer spending through stimulus or social welfare benefits. US tariffs make this even more urgent, observers say, as China’s manufacturers may need to rely more on the domestic market.

Xi linked weak demand to China’s “economic security” during a key Communist Party economic meeting late last year, according to his speech published Friday in Qiushi — in a signal of the increasing importance of addressing the issue.

But even still, analysts see little sign of a departure from Xi’s primary focus on bolstering support for industry.

Beijing is likely to release policies to “make sure that at least the big and some of the medium-sized industrial producers can survive additional (US) tariffs,” according to Victor Shih, director of the University of California San Diego’s 21st Century China Center.

Beijing is counting on its subsidized companies being able to weather those tariffs, given the dependency of US industries on Chinese goods – and to have its own firms ultimately come out dominant.

“So in a sense they’re not afraid of (them),” he added, of US tariffs.

In the short term, such industrial support could create more friction with the US and China’s other trade partners. The country’s reliance on exports as an agent of growth propelled it to a nearly $1 trillion trade surplus with the rest of the world last year – a driving factor for Trump’s tariff push.

For China, that fits in with the wider message it’s expected to send in the coming days: even as headwinds mount, it’s confidently staying its course – and ready to be seen as a champion of global trade and order.

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