In response to a year-on-year decline in industrial profits across various sectors in the first half of the year, the Chinese government has initiated a nationwide campaign to prevent companies from engaging in ‘cutthroat’ pricing practices. The Politburo of the Chinese Communist Party (CCP) Central Committee, during a meeting on July 30, emphasized the need to deepen the construction of a unified national market, optimize market competition order, and regulate disorderly competition through laws and regulations. The Politburo also proposed measures to boost consumption, cultivate new growth points for service consumption, and expand commodity consumption. This decision follows the National Statistics Bureau’s report on July 27, which revealed a 1.8% decline in industrial profits to 3.44 trillion yuan (US$473 billion) in the first six months of the year. State-owned enterprises (SOEs) experienced a 7.6% drop in profits, while joint-stock companies saw a 3.1% decrease. Foreign companies in mainland China, Hong Kong, Macau, and Taiwan reported a 2.5% increase in profits, while private firms saw a 1.7% rise. The campaign aims to address ‘neijuan,’ or involution, characterized by price wars due to low demand, high inventory, excessive production capacity, and over-competition. Economists attribute the profit decline to weak domestic consumption, a sluggish property market, and the impact of US-China tariff wars. The government’s efforts include encouraging mergers and acquisitions, restructuring, and controlling new production capacity in traditional industries while supporting innovation in emerging sectors.
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US stocks slip following the latest discouraging signal on the economy
U.S. stock indices experienced a downturn on Tuesday, reflecting growing concerns over the health of the U.S. economy. The S&P 500 dropped by 0.5%, the Dow Jones Industrial Average fell by 61 points (0.1%), and the Nasdaq composite declined by 0.7%. This movement followed a volatile period where the S&P 500 swung from its worst day since May to its best day in the same month. A weaker-than-expected report on U.S. services sector activity, encompassing industries like transportation and retail, exacerbated worries that President Donald Trump’s tariffs might be negatively impacting the economy. However, optimism surrounding potential Federal Reserve interest rate cuts and stronger-than-anticipated corporate earnings helped mitigate the losses. The S&P 500 remains within 1.4% of its record high. Edgewell Personal Care, the parent company of Schick, Playtex, and Banana Boat, saw its shares plummet by 18.8% after reporting lower-than-expected quarterly profits and revenue. CEO Rod Little attributed the decline to a weak sun care season in North America and tariff-related profit pressures. Across industries, companies have been vocal about the adverse effects of tariffs on their earnings, with trade policy emerging as a dominant theme in the latest Institute for Supply Management survey. Despite these challenges, the artificial intelligence sector continues to thrive. Palantir Technologies surged 7.8% after exceeding profit expectations and raising its full-year revenue forecast. Similarly, Axon Enterprise, known for its Tasers and body cameras, leaped 16.4% due to robust AI-driven growth. On the downside, American Eagle Outfitters fell 9.5%, partially reversing its previous day’s gains, while Yum Brands dropped 5.1% after missing earnings expectations. The S&P 500 closed at 6,299.19, the Dow at 44,111.74, and the Nasdaq at 20,916.55. Market analysts are now closely watching corporate earnings and potential Federal Reserve rate cuts in September, which could provide a boost to both stock prices and the broader economy. Treasury yields also declined, with the 10-year yield dropping to 4.19%, reflecting investor caution. Internationally, stock markets in Europe and Asia mostly rose, while India’s Sensex dipped 0.4% amid U.S.-India trade tensions.
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China can’t buy its way to a baby boom
In a significant move to combat China’s declining birth rate, the central government announced a new childcare subsidy on July 28, 2025. Families will receive 3,000 yuan ($417.76) annually for each child under three years old. This initiative follows the recent unveiling of plans to provide free preschool education nationwide, marking a shift from previous years when local authorities primarily handled such policies. Despite various local efforts, including cash incentives and housing subsidies, the national birth rate has continued to decline, with China’s population shrinking for the third consecutive year in 2024. The aging population and shrinking workforce pose long-term challenges for economic growth, healthcare, and pension systems. While some regions have seen slight increases in birth rates due to local policies, the overall impact remains minimal. The high cost of raising children, gender inequality, and structural issues like expensive housing and childcare shortages continue to deter many from starting families. The new measures reflect Beijing’s recognition of the urgency of the situation, but reversing the fertility decline may prove difficult, as seen in other countries like South Korea. To truly address the issue, comprehensive cultural and structural changes are needed, alongside financial support.
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US willfully ceding the energy innovation race to China
During the Cold War, the United States and the Soviet Union were engaged in a fierce competition to develop advanced technologies such as long-range missiles and satellites. Today, the global technological race has shifted to artificial intelligence (AI) and next-generation energy solutions. While the US has maintained a significant lead in AI, its position in the energy sector has been undermined by political decisions rather than technological or economic factors. Since returning to the White House in January, Donald Trump has prioritized the fossil fuel industry, rolling back support for renewable energy and appointing former industry lobbyists to key political positions. This shift has had profound implications for both domestic energy costs and the global clean energy race. The Trump administration’s policies have led to increased household energy expenses, with projections indicating a rise of $170 annually until 2035 due to the One Big Beautiful Bill Act. This legislation has stripped away incentives for renewable energy, making clean energy development more cumbersome. Meanwhile, China has surged ahead, dominating the global market for wind, solar, and next-generation batteries. China’s strategic investments in renewable energy have positioned it as a leader in electric vehicle production and solar panel manufacturing. The US, despite its potential for innovation in geothermal and battery recycling technologies, has effectively withdrawn from the competition to become the world’s 21st-century energy manufacturing powerhouse. The environmental and financial costs of Trump’s fossil fuel-centric policies are becoming increasingly evident, with climate change exacerbating natural disasters across the country. As the US grapples with rising energy costs and environmental challenges, China’s foresight in embracing renewable energy offers a stark contrast to America’s current trajectory.
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Le Monde publishes new details of campaign against Karim Khan and ICC
An alarming intimidation campaign targeting International Criminal Court Chief Prosecutor Karim Khan has been extensively documented by French publication Le Monde, revealing systematic pressure tactics from multiple nations and internal sabotage attempts. The coordinated effort emerges directly from Khan’s pursuit of war crimes charges against Israeli Prime Minister Benjamin Netanyahu, former Defense Minister Yoav Gallant, and other Israeli officials.
The campaign features direct threats against ICC personnel, including British barrister Andrew Cayley who oversaw the Palestine investigation. Dutch intelligence warned Cayley of security risks in The Hague, followed by explicit December 2024 threats labeling him ‘an enemy of Israel’ who should ‘watch his back.’ Cayley subsequently left his position citing health impacts from pressure and fear of U.S. sanctions.
Internal undermining came from Thomas Lynch, Khan’s senior legal adviser and longtime colleague tasked with liaising with Israel. Lynch allegedly proposed arranging a Jerusalem dinner between Khan and Netanyahu through lawyer Alan Dershowitz—a move Khan reportedly rejected as inappropriate spectacle. Lynch later triggered internal harassment investigations against Khan and attempted to have him suspended following sexual misconduct allegations, which Khan denies.
Government-level intimidation included then-British Foreign Secretary David Cameron’s April 23, 2024 threat that Britain would withdraw from the Rome Statute if Khan pursued arrest warrants, comparing the action to detonating ‘a hydrogen bomb.’ Similarly, British-Israeli ICC lawyer Nicholas Kaufman warned Khan in a May 1 meeting that he and the ICC would be ‘destroyed’ unless warrants were reclassified as confidential to allow private Israeli challenges.
The pressure campaign extends to tangible sanctions: Khan has had his U.S. visa revoked, family members banned from traveling to America, UK bank accounts frozen, and credit cards canceled. Despite these pressures, Khan was reportedly preparing additional warrants for far-right Israeli ministers Bezalel Smotrich and Itamar Ben Gvir over West Bank settlement expansions before taking leave amid internal turmoil. The U.S. escalated pressure further by sanctioning four ICC judges on June 8, with State Department legal adviser Reed Rubinstein warning ‘all options remain on the table’ unless the investigation is dropped.
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China seeks power beyond water with world’s biggest dam
China has embarked on an ambitious new phase of its infrastructure development with the commencement of the Motuo hydropower project. This mega dam, comprising five cascade hydropower stations, is set to become the world’s largest source of hydroelectric power, surpassing the Three Gorges Dam by a factor of four. Chinese Premier Li Qiang has hailed it as the ‘project of the century,’ underscoring its significance in reflecting China’s geopolitical ambitions and technological prowess. However, the project’s location on the Yarlung Zangbo River, which feeds into the Brahmaputra River flowing through India and Bangladesh, has sparked regional tensions. Both nations have expressed concerns over potential disruptions to their water supplies, particularly given the already strained Sino-Indian relations over the disputed region of Arunachal Pradesh, which China refers to as Zangnan. The dam’s strategic location grants Beijing significant leverage over downstream water flows, a tactic previously demonstrated in the Mekong River Delta. Beyond its geopolitical implications, the Motuo project symbolizes China’s historical quest to control its rivers, a theme deeply rooted in its civilization. It also aligns with China’s push for energy self-sufficiency, with the dam expected to generate 300 billion kilowatt-hours annually—equivalent to the UK’s total electricity production. While the project promises economic and environmental benefits for China, it also raises concerns about its broader impact on regional water security and geopolitical dynamics in South Asia.
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China happily and aggressively filling Trump’s climate vacuum
In early 2025, President Donald Trump’s announcement of the United States’ second withdrawal from the Paris Climate Agreement sent shockwaves through the global community. This decision raised concerns about the potential erosion of international efforts to combat climate change and the diminishing influence of the US on the world stage. The move left a leadership vacuum, prompting questions about who would step up to drive global climate action. While the long-term implications of this political shift remain uncertain, emerging leaders are already making their mark. The US initially joined the Paris Agreement in 2015 under President Barack Obama, committing to reduce greenhouse gas emissions by 26-28% below 2005 levels by 2025 and pledging financial aid to developing nations. However, by 2025, the US had only achieved a 17.2% reduction, falling short of its target. Trump’s first withdrawal in 2017, citing economic concerns and perceived unfairness, was met with widespread criticism. Despite this, the agreement endured, bolstered by commitments from US businesses, states, and cities. Globally, countries like China, the European Union, and the UK have intensified their climate efforts, filling the void left by the US. China, in particular, has emerged as a key player, leveraging its Belt and Road Initiative to expand renewable energy investments worldwide. The Paris Agreement’s flexible, nonbinding framework has proven resilient, surviving both US withdrawals. As the world prepares for COP30 in Brazil, the focus remains on balancing economic growth with ecological sustainability, with the question of global climate leadership still unresolved.
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US-China trade talks threaten to explode over Russia oil
The United States has issued a stern warning to China, urging it to cease its purchases of oil and gas from Russia and threatening to impose secondary sanctions, including potential 100% tariffs. This development follows recent trade agreements between the US, the European Union, and Japan, which set tariffs at 15%. US Treasury Secretary Scott Bessent conveyed Washington’s dissatisfaction during meetings in Stockholm with Chinese Vice Premier He Lifeng, emphasizing concerns over China’s continued acquisition of sanctioned Russian and Iranian oil. Bessent also criticized China’s sale of over $15 billion in dual-use technology to Russia, which reportedly supports Moscow’s military efforts in Ukraine. Chinese officials responded by asserting their sovereignty and internal energy policies, stating that oil purchases are based on national interests. The US-China 90-day tariff truce, set to expire on August 12, remains unresolved, with President Donald Trump poised to decide on its extension or the reimposition of tariffs. Meanwhile, Trump has set a 10-12 day deadline for Russia to end the Ukraine conflict, threatening severe consequences, including tariffs on Russian goods and those from countries purchasing Russian oil. Chinese commentators argue that US pressure will not sever China’s ties with Russia and Iran, emphasizing the strategic importance of these relationships. The global spotlight now focuses on whether China will distance itself from Russia to avoid US tariffs.
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US and NATO allies warn of increasing Iranian threats in Europe, North America
In a unified stance, the United States and several NATO allies have issued a stern condemnation of Iran for its increasing involvement in hostile activities across Europe and North America. A joint statement released on Thursday accused Iranian intelligence services of orchestrating assassination attempts, kidnappings, and harassment campaigns targeting dissidents, journalists, Jewish citizens, and former officials. The statement emphasized that these actions constitute a blatant violation of national sovereignty and are carried out in collaboration with international criminal organizations. Signatories to the statement include NATO members such as Albania, Belgium, Britain, Canada, the Czech Republic, Denmark, Finland, France, Germany, the Netherlands, Spain, Sweden, and the United States, with Austria as the sole non-NATO participant. The governments pledged to collaborate in thwarting such plots and demanded that Iran cease its illegal activities immediately. While the statement did not specify particular incidents, it highlighted longstanding concerns over Iranian-sponsored threats. British intelligence has repeatedly warned of Tehran-backed plots, with three alleged Iranian spies currently facing charges in the U.K. for surveilling and planning violence against journalists. German authorities also reported the arrest of a suspect linked to Iranian intelligence in Denmark. Despite these threats, the Trump administration recently withdrew government-funded protection for several former officials, including John Bolton and Mike Pompeo, who faced Iranian threats during the Biden administration.
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China’s arrests of boys’ love authors hardly a gay crackdown
Recent reports in Western media have painted a dramatic picture of China’s alleged ‘crackdown’ on the ‘boys’ love’ (BL) genre, a popular form of online fiction. However, a closer examination reveals a more nuanced reality. While Western outlets have framed the issue as a nationwide suppression of ‘gay erotica,’ Chinese media, such as the respected Southern Weekly, have highlighted localized law enforcement actions, particularly in Lanzhou and Jixi county, targeting individuals accused of profiting from obscene material. The narrative of a sweeping crackdown appears exaggerated, as these incidents are not representative of a broader national policy. Instead, they reflect specific legal disputes and jurisdictional challenges. The BL genre, which features romantic or erotic relationships between men, is primarily written by and for heterosexual women, complicating the characterization of it as ‘gay erotica.’ Scholars argue that the genre often presents an idealized version of male homosexuality, distinct from the lived experiences of gay men. In China, the genre’s popularity has inadvertently increased visibility for the LGBTQ+ community, but its conflation with homosexuality has also led to misunderstandings. The arrests of BL writers are more likely tied to China’s strict obscenity laws and its efforts to regulate the lucrative online literature industry, which generates billions in revenue. While Western media often portrays such actions as homophobic, the reality is more complex, involving economic, ideological, and legal factors. The disappearance of high-profile cases from public discourse further underscores the challenges of understanding censorship in China.