Global Landscape Shifts as Allies Seek Deals with China Amid Trump's Trade Policies
Growing global turbulence and uncertainty are prompting shifts in international relations, with some U.S. allies seeking stronger ties with China as former President Donald Trump's trade policies continue to impact global commerce. These developments unfolded against a backdrop of significant economic news, including Deutsche Bank's announcement of strong profits overshadowed by a money laundering investigation, and concerns about the impact of artificial intelligence on the workforce.
British Prime Minister Keir Starmer and Chinese President Xi Jinping called for a "comprehensive strategic partnership" to deepen ties between their nations, according to the Associated Press, on January 29, 2026. While neither leader directly mentioned Trump, his challenge to the post-Cold War order was clearly a factor in their discussions.
Simultaneously, some of America's longtime allies are actively diversifying their trade relationships away from the U.S., spurred by Trump's tariffs and rhetoric, NPR reported on January 28, 2026. These nations are reportedly seeking deals with China and India.
These shifts in international alliances occur as other significant economic events unfold. German federal prosecutors raided Deutsche Bank's Frankfurt headquarters and Berlin offices on Wednesday as part of a money laundering investigation, Fortune reported. The raid occurred as CEO Christian Sewing announced the bank's highest annual profit since 2007: 8.5 billion net profit in 2025. Sewing also unveiled a share-buyback program, signaling confidence in the bank's turnaround. However, news of the investigation caused shares in the German bank to drop 1.86% on Wednesday.
Meanwhile, a study from Microsoft and Carnegie Mellon University revealed that relying too much on AI tools like ChatGPT was associated with diminished critical thinking skills among knowledge workers, Fortune reported. This concern is particularly relevant to younger generations navigating AI anxiety, with some fearing the technology is making people "dumber," according to Fortune.
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