Good morning. China tightened its control over sectors crucial to making high-tech products including electric vehicles and jet fighters, threatening to reignite trade tensions with the U.S. ahead of an expected meeting between President Trump and Chinese leader Xi Jinping.

China’s Commerce Ministry said that foreign suppliers must obtain approval from Beijing to export some products with certain rare-earth materials originating from China if they account for 0.1% or more of the good’s total value. Goods produced with certain technologies from China are also subject to the export controls. Both restrictions apply to products manufactured outside of China.

• EV licenses: The ministry also said it would require licenses for exports of certain lithium batteries and some equipment and materials used to make them, expanding restrictions on technology used in EVs and consumer electronics.
   
• Dominating supply chains: The controls are the latest from Beijing to flex China’s global dominance of supply chains, especially for cutting-edge industries and defense systems. The new rules signal China is tightening its stranglehold on key industrial bases and technologies as the U.S. and other Western countries aim to build up domestic manufacturing and reduce reliance on China.
   
• Major escalation: The rule is viewed as an escalation in the U.S.-China trade fight because it threatens the supply chain for semiconductors. Chips are the lifeblood of the economy, powering phones, computers and data centers needed to train artificial-intelligence models. The rule also would affect cars, solar panels and the equipment for making chips and other products, limiting the ability of other countries to support their own industries. China produces roughly 90% of the world’s rare-earth materials.

Tesla self-driving technology breaks traffic laws. Can the feds stop it?

Federal regulators have opened another investigation into Tesla’s automated driving technology, saying the system known as Full Self-Driving (Supervised) “induced” some cars to run red lights or to turn into oncoming traffic.

The probe, the latest of several to examine Tesla’s technology, covers nearly 2.9 million vehicles equipped with the FSD system. Several incidents have resulted in crashes, including some that caused injuries, the National Highway Traffic Safety Administration said in a filing.

U.S. targets Chinese refinery, ‘shadow fleet’ in new Iran sanctions.

The U.S. Treasury announced new sanctions aimed at Iran’s energy trade, blacklisting more than two dozen ships and Chinese crude oil businesses, Risk Journal reports.

The U.S. sanctioned more than 50 individuals, entities and vessels that help move billions of dollars’ worth of Iranian oil and gas, the U.S. Office of Foreign Assets Control said Thursday. The measures mark the fourth round of sanctions targeting China-based refineries that purchase Iranian oil, OFAC said.

• China’s Ministry of Commerce on Thursday added 14 foreign entities, including American, British and Canadian defense technology and intelligence analysis firms, to its Unreliable Entity List, prohibiting them from conducting business with China and making new investments in the country.
   
• The Bank of Canada’s No. 2 official endorsed a competition shakeup in the highly concentrated financial-services industry, saying the country’s banking sector is an oligopoly and changes could help lift Canada’s prolonged productivity slump.

Israeli government approves hostage deal setting a cease-fire in Gaza.

Israel’s government approved an agreement brokered by the Trump administration to free the remaining hostages held by Hamas and establish a cease-fire in Gaza, sealing a diplomatic breakthrough after months of failed talks.

The hostage deal, which President Trump announced from the White House on Wednesday, promises to close a wound opened by the Oct. 7, 2023, Hamas-led attacks in southern Israel and give momentum to the effort to end a two-year war that has left tens of thousands of Gazans dead and the enclave in ruins.

U.S. troops began to arrive in Israel Thursday, the first of about 200 being sent to support the cease-fire in Gaza as part of an international team, according to U.S. officials.

The Israeli military said Friday a cease-fire in Gaza went into effect at noon local time, setting the stage for the release of the remaining hostages and an influx of humanitarian aid into the territory.

After years of protests, environmentalists are fighting to save nuclear plants.

Perceptions of nuclear power have radically changed across the West and beyond in just a few years. Where once governments and the public saw safety risks, some now see a source of low-carbon electricity that is crucial to help economies shift away from fossil fuels.

The war in Ukraine exposed Europe’s vulnerability to gas supplies from Russia, highlighting how gas—or even coal—would be needed to replace nuclear generation. The case for building new reactors is uncertain because their costs are enormous, but experts say prolonging the life of old ones is less expensive than almost any other form of low-carbon energy.

The challenge is to reverse the years of planning that go into shutting down reactors, and then to find the money for safety upgrades.

• Russian President Vladimir Putin admitted that Russia was to blame for downing an Azerbaijani passenger jet last year in an incident that killed dozens of people and chipped away at Moscow’s influence over the former Soviet republic.

• Republican and Democratic senators are trading ideas on healthcare funding to forge a path out of the government shutdown, as tensions rose on Capitol Hill ahead of what is set to be a painful week for government workers and military servicemembers.
   
• How much pay will workers sacrifice for remote work? A lot, actually.
   
• A shortage of air-traffic controllers at airports from Nashville, Tenn., to Chicago’s O’Hare International Airport has already delayed thousands of flights across the country this week.
   
• The Justice Department has secured an indictment against New York Attorney General Letitia James following an investigation into mortgage fraud allegations, an expansion of the Trump administration’s campaign to prosecute the president’s political adversaries.
   
• Experimenting with the math and data behind AI models can be exhilarating—and revealing, John West writes in an essay.

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