China
Chipmaker CXMT vaults to top of China’s valuation with 466% surge in Shanghai debut. CXMT shares rose 466% on their first trading day after the company raised $8.6 billion in Asia’s largest IPO of the year. The rally lifted its market capitalization to 3.3 trillion yuan, making it China’s most valuable listed company. Investors welcomed exposure to the memory-chip boom, though analysts warned that the valuation appeared speculative and vulnerable to industry cycles and U.S. export controls. Yantoultra Ngui and Samuel Shen, Reuters, July 26
Brazil turns to China trade deal after Trump’s tariffs, as years of resistance end. Xi Jinping and Luiz Inacio Lula da Silva agreed to accelerate negotiations for a China-Mercosur trade agreement, reversing Brazil’s longstanding resistance to opening the bloc’s market to Beijing. The shift followed new U.S. tariffs and Lula’s commitment to diversify commercial partners. The leaders also discussed cooperation in artificial intelligence, satellites, critical-minerals processing, and fertilizer trade, and announced a short-stay visa waiver arrangement. Igor Patrick, South China Morning Post, July 27
U.S. congressional group plans annual visits to China after trade trip. The U.S.-China Economic and Security Review Commission pledged to seek annual visits to China after completing its first fact-finding mission there since 2019. Commissioners met diplomats, Chinese officials, think tanks, and business representatives in Beijing, Shanghai, and Hangzhou to discuss technology, biotechnology, economic security, and regional affairs. Some requested meetings with Chinese technology companies did not occur, but the Chinese Embassy welcomed renewed engagement. Han Li, South China Morning Post, July 27
Japan
GSDF officer indicted over Chinese Embassy trespass, threats. Japanese prosecutors indicted Ground Self-Defense Force officer Kodai Murata for entering the Chinese Embassy compound in Tokyo with an 18-centimeter kitchen knife and threatening staff. Murata underwent a three-month psychiatric evaluation before prosecutors concluded he could be held responsible. Police said he wanted to convey his views to the ambassador and had planned to kill himself if rebuffed. Kyodo News, July 27
PM stands firm on LDP-JIP ties and notes public concern over foreign influx. Sanae Takaichi said trust between the Liberal Democratic Party and coalition partner Japan Innovation Party remains unwavering despite friction over a shelved seat-reduction bill. She declined to address the possibility of cooperating with the Democratic Party for the People but stressed that stable politics is necessary to advance economic, diplomatic, and security policies. She also acknowledged public concern about the influx of foreign nationals. Kanako Takahara, The Japan Times, July 27
Japan’s Takaichi defends policy as underpinning yen, approval rating slumps. Sanae Takaichi said stronger growth and competitiveness would restore market confidence in the yen, while emphasizing that the Bank of Japan controls monetary policy but must coordinate with the government. Her administration’s approval rating fell to 57%, with 71% disapproving of measures against rising living costs. A weak yen, higher bond yields, uncertainty over a promised food-tax suspension, and concerns about government spending have increased political and market pressure. Leika Kihara, Reuters, July 27
South Korea
South Korea court gives ex-President Yoon suspended jail term for violating election law. A Seoul court sentenced Yoon Suk Yeol to 18 months in prison, suspended for three years, after finding that he made false statements during his 2022 presidential campaign. If upheld, the ruling could require the People Power Party to repay 39.7 billion won in reimbursed election expenses. Yoon denied wrongdoing and plans to appeal. Kyu-seok Shim, Reuters, July 27
PPP launches disciplinary process for 3 lawmakers. The People Power Party opened disciplinary proceedings against Cho Kyoung-tae, Jin Jong-oh, and Kwon Young-jin over separate allegations of conduct harmful to the party. Cho allegedly opposed a party candidate for deputy parliamentary speaker, Jin supported an independent candidate despite the PPP fielding its own, and Kwon reportedly assaulted the floor leader during a dispute over committee assignments. Possible penalties range from a warning to expulsion. Lee Haye-ah, Yonhap News Agency, July 27
Lee vows to create diplomatic conditions to resume inter-Korean, N.K.-U.S. dialogue. Lee Jae Myung pledged to pursue conditions enabling renewed talks between the Koreas and between North Korea and the United States. Seoul will continue promoting dialogue and cooperation despite limited progress, working closely with Washington and the international community. Lee said resumed engagement should lead to normalized inter-Korean relations, phased denuclearization, and permanent peace, while requesting Brazil’s continued support. Park Boram, Yonhap News Agency, July 27
Brazil, South Korea agree to advance talks for Mercosur trade deal. Brazil and South Korea agreed to create a working group to accelerate negotiations on a trade agreement between Seoul and Mercosur. Luiz Inacio Lula da Silva is seeking broader commercial partnerships as U.S. tariffs affect Brazil, while Lee Jae Myung described the potential deal as urgent. The leaders also agreed to expand cooperation on critical minerals, and Brazil will receive a South Korean mission to evaluate meatpacking facilities for sanitary approval. Lisandra Paraguassu and Gabriel Araujo, Reuters, July 27
North Korea
U.S. removes sanctions on 84 targets, including N.K. firm, in “modernization” effort. The U.S. Treasury removed 84 individuals and entities from its sanctions list because they were deceased, defunct, outdated, or no longer considered policy priorities. The list included Korea Tangun Trading Corp., sanctioned by Washington and the UN Security Council in 2009 for supporting North Korea’s nuclear and missile programs. Treasury said the removals were part of an effort to keep sanctions targeted, effective, and aligned with U.S. economic, foreign-policy, and national-security objectives. Song Sang-ho, Yonhap News Agency, July 27
Thailand
PP blasts civil service reform plan. People’s Party deputy leader Sirikanya Tansakun criticized Thailand’s proposed early-retirement program for civil servants, saying the government should first determine which agencies and functions should be merged or abolished. She warned that voluntary departures could remove capable officials without substantially reducing the bureaucracy. The compensation, capped at 12 months’ salary, may not attract the targeted 4,000 to 5,000 participants, particularly workers too young for pensions. Sirikanya urged a comprehensive six- to 12-month review before implementation. Bangkok Post, July 27
PM rejects Senate vote claim. Prime Minister Anutin Charnvirakul denied that he or Bhumjaithai members participated in alleged manipulation of Thailand’s 2024 Senate election and rejected suggestions that the accusations threaten coalition stability. He said he had instructed party members before the vote not to become involved in the selection process. Anutin dismissed claims linking his visits to the Pullman Bangkok King Power Hotel with election activities and confirmed plans for legal action against iLaw director Yingcheep Atchanont. Other named party figures also denied wrongdoing. Mongkol Bangprapa, Bangkok Post, July 27
Myanmar
Myanmar military escalates civilian killings, monitor warns, amid diplomatic push. ACLED said Myanmar’s military intensified aerial attacks and civilian repression after a March command restructuring under new military chief Ye Win Oo. The monitor recorded more than a dozen mass killings and over 450 civilian deaths in the first half of 2026. The escalation has continued as Min Aung Hlaing seeks greater regional legitimacy through visits to neighboring countries and tentative engagement with ASEAN. Reuters, July 27
Hundreds of Myanmar migrants flee Chinese crackdown in Yunnan. Around 400 undocumented Myanmar workers in Jinghong reportedly hid in forests to avoid arrest during a Chinese police crackdown. Migrants alleged that detainees were transferred through the National Democratic Alliance Army to Myanmar’s military and risked forced conscription. More than 500 workers were reportedly arrested and deported on July 19, while others abandoned unpaid wages and returned home. The workers face broker fees, exploitation, fines, entry bans, and limited legal protection while seeking higher-paying jobs in Chinese border industries. The Irrawaddy, July 27
Philippines
Philippines’ Marcos puts anti-graft campaign at centre of address to Congress. Ferdinand Marcos Jr. vowed to continue an anti-corruption drive that could produce charges against his cousin, former House Speaker Martin Romualdez, over alleged irregularities in flood-control projects. Marcos also urged Congress to approve tax relief for workers and small businesses as living costs rise. Addressing South China Sea tensions, he cited the 2016 arbitral ruling and declared that Filipinos would not yield or abandon their position. Mikhail Flores and Nestor Corrales, Reuters, July 27
PH, Japan defense pact takes effect in August. The Philippines and Japan exchanged diplomatic notes enabling their Acquisition and Cross-Servicing Agreement to enter into force on August 22. The pact establishes procedures for reciprocal supplies and services between Japan’s Self-Defense Forces and the Armed Forces of the Philippines. Signed in Manila in January, the agreement is intended to strengthen bilateral defense cooperation and support regional peace and security. Bernadette E. Tamayo, The Manila Times, July 27
84% unhappy with flood control scam response. Only 10.4% of Filipinos surveyed said the Marcos administration had done enough to address alleged irregularities in flood-control projects. Another 43% said government action was insufficient, while 41.2% said nothing had been done. Dissatisfaction crossed political affiliations and was highest in Mindanao, where 61% said no genuine accountability measures had been taken. The nationwide survey covered 1,438 respondents and carried a ±2.6 percentage-point margin of error. Franco Jose C. Baroña, The Manila Times, July 27
Second regular session of 20th Congress opens. The Philippine Senate and House opened their second regular session with the 2027 budget and priority legislation at the forefront. Senate President Sherwin Gatchalian pledged measures to lower living costs, increase take-home pay, reduce electricity and fuel prices, expand infrastructure, and create jobs. Proposed bills cover rice supply, worker tax relief, energy regulation, petroleum pricing, long-term infrastructure planning, and support for small businesses. Catherine S. Valente, Javier Joe Ismael, and Reina C. Tolentino, The Manila Times, July 27
Indonesia
Indonesia’s Prabowo approval rating drops to 51.1%, survey finds. Prabowo Subianto’s approval rating fell from 81.2% in November 2025 to 51.1% in July, with worsening perceptions of the economy driving the decline. Nearly half of respondents rated economic conditions as bad or very bad, while dissatisfaction also rose over politics and law enforcement. The poll surveyed 749 people and had a 3.7% margin of error. Dewi Kurniawati, Reuters, July 27
Indonesia faces test of central bank independence after governor’s shock exit. Perry Warjiyo resigned as Bank Indonesia governor before his term ended, reviving concerns about political influence over monetary policy and the institution’s independence. Senior deputy governor Destry Damayanti became interim chief while markets awaited Prabowo Subianto’s nominee. The rupiah weakened near record lows, and investors warned that an unsuitable successor could deepen doubts about policy credibility, fiscal discipline, and whether the central bank will prioritize economic growth over currency stability. Ankur Banerjee, Rae Wee, and Gayatri Suroyo, Reuters, July 27
Taiwan
Concerns over Chinese sea operations raised with Beijing, Taiwan says. Taiwan conveyed concern to Beijing through third countries and private channels over Chinese coast guard, government, and research vessels operating east of Taiwan. Officials said some ships entered Taiwan’s exclusive economic zone, asserted law-enforcement authority, and conducted surveys without consent. Taipei is seeking to avoid escalation beyond 24 nautical miles while defending sovereignty closer to shore, strengthening surveillance, and expanding drone use. Sunny Lai, Focus Taiwan, July 27
Singapore
Singapore, Australia commit to unrestricted flow of essential goods, defence supplies. Singapore and Australia signed agreements protecting access to essential energy products and strengthening defence supply chains. A binding trade protocol discourages export restrictions on diesel and liquefied natural gas while establishing advance notification, consultation, and review procedures. A separate defence arrangement supports cross-sustainment of shared platforms, priority delivery requests, streamlined equipment transfers, industry partnerships, and information exchanges. Samuel Devaraj, The Straits Times, July 27
How Asia Learned to Live With “America First”. Asian allies have adapted to President Donald Trump’s transactional foreign policy by accepting unequal economic deals in exchange for security guarantees and access to American technology. Their exposure to Chinese power makes United States protection vital. Japan, South Korea, and Taiwan have offered major investments and purchases to preserve ties with Washington. Western Europe has resisted this hierarchy, pursued greater autonomy, and defended multilateral norms, but weak defenses limit leverage. John Lee, Foreign Affairs, July 27
East Asia
Xi Jinping, pioneering venture capitalist. China’s government gained a large paper profit from CXMT’s market debut after years of state investment in strategic technology. The chipmaker’s rise showcases the Hefei model, which makes the state an early equity partner in selected firms. Yet guidance funds face failed bets, corruption risks, weak exit options, and limited private buyers. CXMT’s success supports industrial self-reliance, but its return may prove difficult to reproduce across China’s state-backed portfolio system. The Economist, July 27
The hidden divide: Why China’s vice-ministers rarely reach the top. China’s ministerial system separates ministers from vice-ministers into separate cohorts with distinct functions. Full ministers are older, hold longer tenures, and possess provincial or local governing experience. Vice-ministers are younger, rotate through posts, and include many technical specialists and career administrators. The deputy tier functions as a proving ground, while the ministerial apex favors generalists. Women and ethnic minorities remain concentrated at deputy rank, revealing diversity at the top. Li Cheng and Ren Xinyuan, ThinkChina, July 27
Subsidies Do Not Explain China’s Competitiveness. China’s industrial competitiveness cannot be reduced to state subsidies. OECD estimates may misclassify commercial loans as government support, while subsidy intensity among new economy firms fell as their gains expanded. Dense supply chains, market scale, fierce competition, engineering talent, and integrated production systems drive innovation and commercialization. China’s current account surplus stems in part from weak investment after the property downturn. Structural capabilities explain firm performance beyond subsidy centered narratives. Kai Guo, CHINA US Focus, July 27
Xi addresses China and the world in rare public speech on AI. Xi Jinping used his World AI Conference debut to outline a vision of collaboration between humans and machine intelligence. He stressed integration, connectivity, embodied AI, and human control as foundations for growth and social welfare. His first public warning about AI loss of control suggests concern over unpredictable systems and design flaws. The speech may signal more safety research, tighter industry regulation, or restrictions on access to Chinese open-source models. Rebecca Arcesati, MERICS, July 27
Revealing Approaches at AI Conference. The Shanghai World Artificial Intelligence Conference showcased AI applications in manufacturing, public services, culture, and logistics while framing competition as a contest across industrial value chains. China holds strengths in deployment and manufacturing, while the United States leads in large models, chips, cloud infrastructure, and software. Participants stressed open innovation, targeted risk governance, Global South capacity building, and cooperation to prevent high-risk uses from deepening geopolitical conflict or technological dependence. Li Yan, CHINA US Focus, July 27
Is China’s Surplus Really Shrinking? China’s trade surplus remains on an upward path after removing a surge in gold imports from headline data. Gold purchases reached $146 billion during the first half of 2026, masking growth in the goods balance. Manufacturing exports, led by automobiles, kept rising while imports stayed flat. Chip price increases affected both imports and exports, but gold drove the distortion. Excluding gold and chips, the manufacturing surplus retained strong expansion momentum. Brad W. Setser, Council on Foreign Relations, July 27
China’s mightiest river is coming back from the brink. China’s Yangtze River is recovering after decades of pollution, overfishing, dam construction, and habitat loss. A fishing ban, factory closures, reforestation, urban wetlands, and strict enforcement have increased fish biomass and finless porpoise numbers. The campaign shows the state’s capacity to mobilize resources for conservation. Yet displaced fishers report weak compensation and lost livelihoods while continued dam building threatens migration routes, spawning grounds, and further ecological recovery across the basin. The Economist, July 27
China Now Outranks the United States in Global Favorability. What Happened? China surpassed the United States in favorability across countries surveyed by Pew, with declining American soft power driving the shift beyond gains in Chinese appeal. Beijing gained support through cultural products, industrial achievements, development initiatives, and outreach to the Global South. Washington lost trust through tariffs, aid cuts, policy volatility, and strained alliances. China’s advantage remains uneven, weaker near its borders, and vulnerable because concerns about freedom and credibility persist. Yanzhong Huang, Council on Foreign Relations, July 27
Come Hague or High Seas: China’s Environmental Legacy in the South China Sea. China’s bid to host the High Seas Treaty secretariat conflicts with its record of marine damage in the South China Sea. Island building and giant clam harvesting have destroyed an estimated 22,759 acres of coral reef. Beijing rejects the 2016 tribunal ruling while invoking UNCLOS to support ocean governance ambitions. This selective approach raises doubts about China’s credibility and the risks of granting it leadership over global biodiversity protection efforts. Monica Sato, CSIS, July 27
Taiwan's pivot away from China offers a lesson for democracies. Taiwan reduced economic exposure to China by redirecting trade and investment toward the United States and other democratic partners. The shift began after the Sunflower Movement and expanded under Tsai Ing-wen, whose policies linked economic resilience with national security. Taiwan retains trade with China but has cut investment in China, strengthened its role in technology supply chains, attracted American demand, and tied its security to dependence with Washington for protection. Chris Horton, Nikkei Asia, July 27
Southeast Asia
Quietly, not Silently: How Vietnam Deals with China on the South China Sea. Vietnam balances resistance to Chinese maritime claims with economic dependence and a policy of avoiding alliances or collective pressure. Hanoi limits public criticism, confronts Chinese vessels, strengthens legal claims under UNCLOS, expands facilities in the Spratlys, and deepens defense ties with the United States, Japan, India, and the Philippines. This calibrated strategy protects development goals and diplomatic flexibility while building legal, military, and physical capacity against pressure in disputed waters. Huynh Trung Dung, FULCRUM, July 27
South Asia
China’s new decrees manufacture an opening for India. China’s new supply chain decrees may raise costs, delays, and compliance burdens for companies shifting production to India. The measures exploit Chinese dominance in machinery, components, rare earths, and processing technology. India can benefit from China Plus One strategies by expanding domestic capability, supplier networks, critical mineral access, and industrial depth. Success requires competitive logistics, regulatory certainty, technological partnerships, investment safeguards, and reduced reliance on Chinese inputs across manufacturing sectors. Aparna Divya, East Asia Forum, July 27