Foreign investors disappear from US Treasury auctions, as China borrows at the lowest rates ever
Inside China Business | August 10, 2025
A staggering $11 trillion in US government debt needs to be borrowed or refinanced over the next 12 months.
Treasury Department officials are faced with painful choices, whether to borrow at very high rates, locked in for ten years or longer? Or instead borrow for one year or less, but at massive volumes?
Foreign governments and pension funds are also showing far less interest in absorbing new US government bonds, and are demanding ever-higher yields to compensate for inflation and policy risk.
China’s government, however, can borrow at far below half the rate Washington pays, across all maturities. And Chinese companies are paying the lowest interest rates in their history to access new capital. That represents a long-term structural advantage to Chinese policymakers and industry.
Closing scene, Hong Kong South China Morning Post, China cuts US Treasury holdings for third month amid trade war, debt ceiling fears https://www.scmp.com/economy/china-ec…
Zerohedge, Yields Spike After Very Ugly, Tailing 30Y Auction Sparks Steepening Fears https://www.zerohedge.com/markets/yie…
ZH, Very Ugly, Tailing 10Y Auction Sees Slide In Foreign Demand, Plunge In Bid To Cover https://www.zerohedge.com/markets/ver…
ZH, Ugly, Tailing 3Y Auction Sees Worst Foreign Demand Since 2023 https://www.zerohedge.com/markets/ugl…
Managing Risk in the Face of Historic U.S. Debt Refinancing https://www.tradingcentral.com/market…
What Is Happening with Mortgage Interest Rates? https://www.schwab.com/learn/story/wh…
How the Federal Reserve Actually Affects Mortgage Rates https://www.cnet.com/personal-finance…
Wall Street Journal, Trump and Bessent Bring New Style to Managing America’s Debt https://www.wsj.com/finance/investing…
Banking on the Belt and Road: Insights from a new global dataset of 13,427 Chinese development projects https://docs.aiddata.org/ad4/pdfs/Ban…
China 10-Year Government Bond Yield https://tradingeconomics.com/china/go…
What do falling Chinese yields tell us? https://www.dws.com/insights/cio-view…
X, Corporate borrowing costs in the US have never been lower than China’s today https://x.com/UnHedgedChatter/status/…
The geopolitics of India-US ‘trade war’
By Salman Rafi Sheikh – New Eastern Outlook – August 10, 2025
By slapping tariffs on India and linking them to its ties with Russia, the Trump administration exposed its willingness to strong-arm New Delhi into submission.
Unless India pulls off a dramatic reset with China—and thus reduce its dependence on the US for military support—it will remain caught between appeasing Washington and defending its strategic autonomy.
When the US President announced sweeping 25% tariffs on Indian goods in late July, his tone marked a jarring departure from the warmth once displayed toward New Delhi. Only months earlier, he had welcomed Prime Minister Narendra Modi to the Oval Office, hailing him as a “great friend” and celebrating the US-India relationship as a partnership destined for global leadership. Now, with the stroke of a Truth Social post, India is recast not as an ally, but as an economic adversary.
This abrupt reversal speaks volumes. The President’s social media declarations—accusing India of being a “dead economy”—ignored not only diplomatic decorum but economic reality. India is the world’s most populous nation and the fifth-largest economy, a critical player in global markets and geopolitics alike. To dismiss it so flippantly is to misunderstand the arc of global power.
But beyond the bluster lies a deeper provocation. Washington’s veiled threat—imposing additional, unspecified penalties on India over its continued oil trade with Russia—underscores a troubling shift in US foreign policy: coercion in place of collaboration. The implicit bargain offered to New Delhi is clear—cut ties with Moscow, and the US may relent on tariffs and even entertain a trade deal. Refuse and face economic punishment.
Why Trump Wants India to Submit
When Donald Trump referenced oil in the context of US-India relations, it wasn’t his only focus. A quieter, yet strategically significant, concern involved India’s long-standing defense ties with Russia. For decades, New Delhi has been one of Moscow’s most reliable customers in the global arms market. While India’s reliance on Russian military hardware has declined—from 55% of total imports in 2016 to an estimated 36% in 2025—Russia remains India’s top defense supplier.
To the Trump administration, however, this decline is an opening that must be exploited for American gains. A shrinking Russian share in India’s defense market presents the perfect opportunity to push more US-made military systems as replacements. In doing so, Washington hopes to edge out Moscow and deepen strategic ties with New Delhi in the process.
Signs suggest India may already be leaning toward such a transition. According to Indian defense media reports, the Indian Air Force (IAF) recently advised the government to prioritize acquiring US-made F-35 fighter jets instead of the fifth-generation aircraft offered by Russia earlier this year. Until now, India had remained undecided, caught between its historical ties with Russia and its evolving strategic calculus. However, should New Delhi proceed with the F-35 acquisition, it would mark a significant shift—not just symbolically, but financially and strategically. The Indian government reportedly plans to induct over 100 F-35s by 2035, an investment expected to run into billions of dollars, directly boosting the US defense sector. More importantly, such an investment will lock India as a firm US ally. As far as the Trump administration is concerned, this would also lend substance to Trump’s “Make America Great Again” agenda by channeling substantial foreign capital into the American economy.
As far as New Delhi is concerned, inducting F-35s could help bolster its regional standing vis-à-vis China and the latter’s continuous injection of its state-of-the-art defence technology into Pakistan, including its air-force. Indian defence analysts claim that this induction will allow India to avoid any more loses in aerial battles like the ones it suffered in its war with Pakistan in May.
What India Can Do
Yet, New Delhi’s strategic choices are far more complex than they might initially appear. Even if India opts to procure the F-35 fighter jets, it is far from certain that the US would permit their use in an offensive capacity against Pakistan—especially considering Washington’s increasingly cooperative ties with Islamabad. For context, Pakistan itself is restricted from employing its US-supplied F-16s for offensive operations against India. This raises a critical question for Indian policymakers: will a deepening defense relationship with the US genuinely enhance India’s air power posture vis-à-vis Pakistan, its principal adversary in South Asia?
The timing of New Delhi’s public disclosure of the Indian Air Force’s interest in F-35s—just days before a crucial deadline—was no accident. It seemed designed to sway the Trump administration’s position on trade tariffs. But the gambit failed to yield any concrete concessions. The episode underscores a deeper and more troubling question: should India continue to allow the US to exert disproportionate influence over its defense procurement and broader foreign policy?
This incident should prompt serious introspection among Indian policymakers. Rather than leaving its strategic vulnerabilities open to manipulation, India could take steps to insulate its foreign policy from external pressure. One pragmatic approach would be to normalize and even strengthen ties with regional competitors like China—an idea already gaining quiet traction. New Delhi has recently revived visa services with Beijing, and bilateral trade talks are beginning to show signs of momentum.
Interestingly, President Donald Trump’s remarks about “not doing much business with India” were widely interpreted as a thinly veiled reference to India’s growing economic engagement with China. In essence, Washington seeks to mold India’s foreign policy—particularly its relationships with China and Russia—to align more closely with American strategic interests. Should India capitulate to that pressure, it risks downgrading its role from an emerging regional power to a junior partner dependent on Washington for strategic direction.
India’s foreign policy establishment is now at a pivotal juncture. The choices made in the coming years will not just determine the shape of the country’s defense acquisitions or trade policies—they will define India’s role on the world stage for decades to come. If New Delhi is to maintain its claim to strategic autonomy, it must resist the temptation to shape its policies in reaction to US expectations.
Salman Rafi Sheikh, research analyst of International Relations and Pakistan’s foreign and domestic affairs
New Delhi between sanctions and sovereignty
By Lucas Leiroz | Strategic Culture Foundation | August 8, 2025
In a world where the international order is increasingly shaped by the struggle between a declining unipolarity and an emerging multipolarity, sanctions have become the main weapon of a superpower that can no longer dictate the course of global affairs by consensus. What was once an exception — economic punishment against states clearly involved in illegal activities or blatant violations of international norms — has become a systemic, arbitrary, and politically motivated practice. And India is now the latest target of this coercive apparatus that defines the foreign policy of the United States.
The repeated use of sanctions by Washington reveals, above all, the exhaustion of its diplomatic capacity. Instead of building bridges with strategic partners, the U.S. chooses to punish, isolate, and sabotage any country that dares to follow an autonomous path.
Sanctions policy as a mechanism of domination
U.S. unilateral sanctions — almost always imposed outside the UN Security Council and in defiance of international law — have become a systematic policy of intimidation. Iran, Cuba, Syria, North Korea, Venezuela, Russia, and China have been the most well-known targets. But the list keeps growing. And India, previously seen as a potential Western ally in the Indo-Pacific, is now beginning to feel the weight of this punitive system.
The logic is simple: the U.S. identifies an “unacceptable” behavior — such as India’s refusal to join the sanctions against Russia — and from there constructs a narrative to justify pressure measures. It could be the defense of “human rights,” the “fight against terrorism,” or, as is now being done with India, the “war on drugs.” The content of the narrative is secondary; what matters is the effect: to break the sovereignty of the targeted country and force it to align with Washington’s foreign policy.
India: the new frontier of coercion
In recent days, Donald Trump has announced sanction packages of up to 50% against India, citing the “need” to punish trade partners of the Russian Federation. These coercive measures came after months of open threats toward India — some directly referencing the Indo-Russian partnership, others hiding behind the mask of the “fight against fentanyl.”
Although the recently announced sanctions are explicitly directed at Indo-Russian energy trade, there’s no guarantee that the U.S. will abandon the fentanyl rhetoric altogether. The “drug control” excuse may easily be revived at any moment to impose further sanctions on New Delhi, especially considering that this was Washington’s initial justification before Trump finally admitted the real motive: punishing India for its ties with Russia.
It must be emphasized that what brought India into Washington’s sanction crosshairs was not any real connection to fentanyl trafficking, but rather its strategic resilience in the face of Western efforts to isolate Russia. Since 2022, India has maintained firm energy and military cooperation with Moscow, refusing to take part in the U.S. and EU-led anti-Russian crusade. This pragmatic position — based on Indian national interests rather than ideological dogma — deeply irritated the Washington establishment.
In response, the U.S. began floating the idea that chemical exports from India could be diverted for fentanyl production — a claim made without solid evidence, but politically convenient. In a classic move, they attempt to turn a country with no proven role in fentanyl trafficking into part of the “drug problem,” paving the way for tariffs and trade restrictions.
This is Washington’s new modus operandi: transform internal crises — in this case, the collapse of the U.S. healthcare system and the opioid epidemic — into diplomatic weapons to force other nations to serve its strategic interests.
Rapprochement with Russia and China: India’s geopolitical response
In the face of this escalation, India appears to have understood the game — and is beginning to react astutely. Not only has it maintained and expanded its agreements with Russia, but it has also signaled a renewed openness to dialogue with China, having Prime Minister Modi announced a visit to Beijing.
This is a geopolitically significant move. India and China have long had a tense relationship, especially concerning the Himalayan border. But in the face of a common enemy — the global regime of unilateral sanctions that threatens the sovereignty of both — realism is starting to prevail. India already plays an active role in forums such as BRICS, the Shanghai Cooperation Organization (SCO), and the G20, but now signals a willingness to deepen its coordination with both Beijing and Moscow.
This marks the emergence of a “new” strategic triangle in the Global South — not based on ideological affinity, but on a shared need to resist the economic coercion promoted by the West. India is not becoming an automatic ally of China, but rather a situational partner in building a multipolar order, where the right to chart one’s own path is no longer subject to Washington’s approval.
Fragmentation of the global system and alternatives to the dollar
This strategic reconfiguration is happening in parallel with the fragmentation of the global financial system. As more countries begin operating outside the SWIFT system, pursue bilateral trade agreements in local currencies, and strengthen alternative development banks, the power of unilateral sanctions is beginning to erode. India has already signed agreements with Russia, Iran, and the UAE to trade in rupees, bypassing the U.S. dollar. BRICS+, with the potential creation of a common currency, is moving in the same direction.
By abusing sanctions as a tool, Washington is accelerating this process. In its attempt to maintain control, it ends up stimulating the formation of new centers of economic and diplomatic power — exactly the opposite of its intended outcome.
The end of the American consensus
The attempt to punish India over a crisis that is, above all, the result of domestic failure in the U.S., is not only an act of hypocrisy but also a major strategic miscalculation. Instead of isolating India, the U.S. is driving it deeper into multilateral frameworks that challenge Western hegemony.
New Delhi has made it clear it will not be turned into a geopolitical vassal. India is a civilizational power with its own interests and will not hesitate to forge partnerships — even with historical rivals — if it means securing strategic autonomy.
Sanctions, once presented as instruments of international justice, have become the primary mechanism for imposing a failed global order — one that seeks to preserve historical privileges at the expense of national sovereignty. The economic attacks on India over its strategic ties with Russia are just one example of this broader reality.
But a new world is taking shape. A world where countries like India, Russia, and China are building bridges over ruins — converging not out of ideological alignment, but from the urgent need to resist the systemic coercion of a declining empire. National sovereignty, more and more, will be asserted not through submission, but through coordinated resistance to the language of sanctions.
India understands this. And by responding with dignity and pragmatism, it shows that the path to strategic independence necessarily involves rejecting the arbitrary use of sanctions as a weapon of economic warfare. The multipolar world is under construction — and there is no room in it for domination disguised as moralism.
Panic and production cuts at Pentagon suppliers as China tightens exports
Inside China Business | August 7, 2025
Forever wars in the Middle East, and now in Ukraine, have drained NATO arsenals. But while the US and NATO countries have made giant pledges to boost defense spending, China’s export bans on critical materials are blowing up supply chains for Pentagon weapons makers.
Resources and links:
Wall Street Journal, China Is Still Choking Exports of Rare Earths Despite Pact With U.S. https://www.wsj.com/world/china/china…
Wall Street Journal, China Is Choking Supply of Critical Minerals to Western Defense Companies https://www.wsj.com/world/asia/china-…
Zerohedge, China’s Grip On Critical Minerals Disrupts U.S. Defense Supply Chain https://www.zerohedge.com/military/ch…
78% of US military weapon systems vulnerable to China’s critical mineral dominance https://theoregongroup.com/commoditie…
Nearly one in 10 ‘Tier 1’ subcontractors to defense primes are Chinese firms: Report https://breakingdefense.com/2025/06/n…
China Adds 28 U.S. Defense Companies to Export Controls List https://www.thomasnet.com/insights/ch…
Defence expenditures and NATO’s 5% commitment https://www.nato.int/cps/en/natohq/to…
Antimony Is A Strategic Metal That Is Critical For The Defense Industry & The West Doesn’t Have Much https://robertsinn.substack.com/p/ant…
Trump hits India with additional tariffs as Modi prepares to visit China for first time in seven years
The Cradle | August 6, 2025
US President Donald Trump signed an executive order imposing an additional 25 percent tariff on India over its purchase of Russian energy, the White House said on 6 August.
The additional tariffs will stack on top of 25 percent country-specific tariffs due to take effect overnight, and will come into force within 21 days, according to the executive order signed by Trump.
“They’re fueling the war machine. And if they’re going to do that, then I’m not going to be happy,” Trump said Tuesday in an interview with CNBC.
Despite a warm public reception during Indian Prime Minister Narendra Modi’s White House visit in February, Indian diplomats were “stunned” by what one journalist briefed on the meeting described as a “lack of respect” shown to the prime minister behind closed doors.
Amid these economic tensions, Prime Minister Modi is scheduled to travel to China on 31 August to attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin.
The visit will mark his first to China since the 2020 Galwan Valley clash, and is being widely seen by Indian media as a step toward repairing ties with Beijing amid growing economic strain from the US.
Modi’s last visit to China was in June 2018, also for a summit of SCO leaders in Qingdao.
That was followed by Chinese President Xi Jinping traveling to India in October 2019, just months before the Chinese army’s incursions in eastern Ladakh.
Indian officials have linked the Tianjin summit to earlier visits by India’s External Affairs Minister S. Jaishankar and Defense Minister Rajnath Singh, describing them as part of a slow move to reset ties with Beijing.
Separately, the Times of India reported that Indian National Security Advisor Ajit Doval is expected in Moscow this week for talks on defense cooperation, including a possible expansion of India’s S-400 missile system deal.
Doval’s trip, while previously planned, has reportedly gained renewed importance in light of US pressure over India’s energy relationship with Moscow.
Why EU trade tactics won’t work on Beijing
By Salman Rafi Sheikh – New Eastern Outlook – August 4, 2025
The European Union’s attempt to use trade policy as leverage to shift China’s stance on Russia is faltering, as Beijing firmly resists linking economic ties to geopolitical alignments.
EU-China Ties: Geopolitics more than Trade
The July 24 meeting between European Commission President Ursula von der Leyen and Chinese President Xi Jinping in Beijing was widely described by international media as tense. At the close of the summit, von der Leyen reiterated that the European Union’s relationship with China stood at a “clear inflection point”—a diplomatic phrase signaling that long-standing tensions are now entangled with sharper geopolitical stakes.
Central to this strain is not merely the imbalance in trade—though China’s growing trade surplus with the EU has triggered increasing scrutiny—but rather, the political conditions under which future economic cooperation might occur. While the EU recently imposed tariffs of up to 45% on Chinese electric vehicle imports—citing market distortion and unfair subsidies—the conversation between the two leaders revealed that trade alone was not the core issue. Instead, the underlying tension revolved around China’s strategic alignment with Russia.
Behind closed doors, EU officials conveyed a pointed message: Beijing’s continued support for Moscow, particularly in the context of Russia’s military conflict with Ukraine, is an obstacle to improving trade relations. Von der Leyen was unusually blunt when she stated at the summit’s conclusion, “How China continues to interact with Putin’s war will be a determining factor for our relations going forward”. She obviously did not discuss the underlying reasons, i.e., Washington’s and EU states’ bid to expand NATO to include Ukraine and militarily encircle Russia, for Russia’s military conflict with Ukraine.
In response, President Xi Jinping pushed back against this framing. He maintained that “the challenges facing Europe today do not come from China,” and emphasized that there are “no fundamental conflicts of interest or geopolitical contradictions between China and Europe.” His comments signaled Beijing’s desire to compartmentalize its relationship with Moscow, resisting the EU’s efforts to link trade policy with foreign policy alignment.
For Brussels, however, such compartmentalization may no longer be tenable. European foreign policy is increasingly shaped by the transatlantic context. As the United States ramps up pressure on NATO allies—most of whom are in Europe—to boost defense spending and expand military capabilities, the EU finds itself under both strategic and political pressure to limit Russia’s influence. US officials have repeatedly called on European partners to take a more assertive role in confronting shared adversaries, with Russia chief among them.
How can the EU manage the so-called “threat” from Russia? One way is to boost its defence spending. But defence capacity cannot be increased overnight. It is a long-term solution. Simultaneously, therefore, Brussels is increasingly relying on its trade ties with China as a pressure tactic to strengthen its position vis-à-vis Beijing. EU officials hope that if China can somehow be weaned away from Russia, it might help them force Moscow to the negotiating table and end the ongoing conflict in ways that might protect their long-term interests. It is for this very reason that the EU has now begun sanctioning Chinese entities that may have some connection with Russia. This is pretty evident, in the EU’s decision to impose sanctions last week on two Chinese banks for their role in supplying Russia. Obviously, it annoyed Beijing, but it also sent a clear message. However, if the EU hopes that these pressures will force China to “decouple” from Moscow, it might be sorely mistaken.
Beijing won’t submit to pressure
China recently found success vis-à-vis the Trump administration’s so-called “Global War on Trade”. The US was forced to start negotiations with Beijing because the latter was able to demonstrate not only resilience but also its ability to dominate the global supply chain of critical minerals, forcing the Trump administration to roll back some export curbs on China, including a stunning reversal of the ban on sales of a key Nvidia AI chip.
In today’s context, the EU and the US are hardly the strongest of allies. With the EU fighting US tariffs separately, Beijing fully understands that there are no swords hanging over its head to quickly resolve trade or geopolitical issues with the EU in ways that may not protect Beijing’s interests. Still, while the expectation in both Washington and Brussels was that tariffs would hurt the Chinese economy hard enough for it to change its geopolitical position vis-à-vis Russia and Ukraine, the Chinese economy has been performing well. In fact, it has delivered better-than-expected growth months into the trade war, according to government data, posting a record trade surplus that underscores the resilience of its exports as they pivot away from the US market. The EU economy, on the contrary, is facing sluggish growth rates in 2025 and will continue to grow very slowly in 2026. It is for this reason that when China slowed exports of rare earth minerals to Europe, it triggered a temporary shutdown of production lines at European auto parts manufacturers. And this month, China hit back at European Union curbs on government purchases of Chinese medical devices by imposing similar government procurement restrictions on European medical equipment.
The EU, therefore, must tread carefully. If the Trump administration was unable to force China into submission, Brussel’s capacity is no match either. In fact, Brussel’s core interests will be served much better if it were to 1) de-link its China policy from the US policy on China, and 2) de-link European geopolitical tensions from its ties with China. The EU can surely approach and maintain its ties with Beijing on their own merit and independently of any external factors.
Salman Rafi Sheikh is a research analyst of International Relations and Pakistan’s foreign and domestic affairs.
China Chokes Western Defense Supply With Minerals Stranglehold – Reports
Sputnik – 04.08.2025
China is restricting supplies of critical minerals to Western defense firms, delaying production and forcing them to seek alternatives in other markets, the Wall Street Journal reported, citing sources at the companies.
For example, the newspaper points out, one drone manufacturer that supplies the US military was forced to delay orders for up to two months while it searched for a replacement for Chinese magnets made from rare earth metals.
Traders told the newspaper that some materials needed by the Western defense industry were now selling at prices five or more times higher than they were before China imposed the restrictions.
More than 80,000 components used by the Pentagon contain minerals that are subject to China’s export restrictions, the publication recalled. At the same time, almost all of the US military’s supply chains for these minerals depend on at least one Chinese supplier, so Beijing’s restrictions could cause major problems for the US military.
In addition, Western buyers told the newspaper that China was requesting detailed information about the purpose of the purchased minerals so that they were not used by Western companies in military production.
In early April, the Chinese Commerce Ministry said that Beijing had placed 16 US companies on an export control list to control the export of dual-use goods. As the New York Times noted, Beijing has suspended the export of a wide range of critical minerals and magnets, which are needed, in particular, to assemble cars, drones, robots and missiles.
In June, the Wall Street Journal reported, citing people familiar with the matter, that China had agreed to resume issuing rare earth export licenses to US automakers and industrial plants, but limited the permits to six months. Reuters also reported, citing people familiar with the matter, that China had not committed to granting export permits for some specialized rare earth magnets that US military suppliers need for fighter jets and missile systems.
Rare earth elements are a group of 17 metals that are widely used in high-tech devices, including computers, televisions, and smartphones, as well as in defense technologies, including missiles, lasers, transportation systems, and military communications.
China hits back at US smears on arms supplies to Ukraine at UN Security Council
Global Times | August 1, 2025
China’s deputy permanent representative to the UN Geng Shuang spoke at a UN Security Council meeting on the issue of arms supplies to Ukraine on Thursday local time, refuting accusations made by the US representative against China.
Recently, Russia and Ukraine have held several rounds of direct negotiations and reached a number of agreements on humanitarian issues such as prisoner exchanges, making positive progress. At the same time, however, the crisis continues, with no signs of the war coming to an end. A large volume of weapons and ammunition continues to flow into the battlefield, causing new casualties and damage to infrastructure, Geng noted.
What is particularly concerning is that the types and scope of weapons entering the battlefield are expanding, with their lethality and destructiveness constantly increasing, Geng said. Recent reports indicate that both sides have deployed combat robots, further highlighting that the Russia-Ukraine conflict is increasingly becoming a testing ground for new types of weaponry. This suggests that the nature of warfare could undergo dangerous changes, he added.
“I would like to reiterate that while weapons may win wars, they cannot bring lasting peace. The reckless transfer of arms to the battlefield will only intensify the conflict, prolong the fighting, increase the risk of proliferation, and inflict more casualties and suffering on people in both the conflict zone and the broader region,” Geng said.
The Chinese diplomat pointed out that the urgent priority now is for both parties to work together to de-escalate the battlefield situation as soon as possible, maintain the momentum of dialogue and negotiation, continue building consensus, and ultimately reach a comprehensive, durable, and binding peace agreement.
In response to US representative’s false narratives and malicious smearing of China on the issue, Geng said “this is completely unacceptable,” saying that he responded to such accusations on multiple occasions in past meetings. “Since the US insists on repeating the same rhetoric, I find it necessary to set the record straight once again,” Geng said.
First, China is not the creator of the Ukraine crisis, nor is it a party to the conflict. China has never provided lethal weapons to any party involved in the conflict. We have always strictly controlled the export of dual-use items, including drones, the Chinese diplomat said.
Second, the UN Security Council has not imposed sanctions on any party to the conflict. China maintains normal trade relations with both Russia and Ukraine, in full compliance with international law and without breaching any international obligations, he said.
China’s legitimate and lawful rights and interests must not be infringed upon. “In fact, the US itself continues to engage in trade with Russia to this day. Why should it be acceptable for the US to do so, but not for others? Isn’t this ‘only allowing oneself to set fires while forbidding others from lighting lamps?’” Geng asked.
Third, the Ukraine crisis is currently at a critical juncture, with a genuine prospect for a political resolution. The US cannot on the one hand ask China to play a constructive role in ending the war, while on the other hand continuously smear and pressure China, he said, urging the US to stop playing the blame game and scapegoating others, and instead contribute positively to efforts for a ceasefire, de-escalation, and the promotion of dialogue and negotiation.
The Chinese diplomat emphasized that China maintains normal economic and trade relations with both Russia and Ukraine – this does not violate international law, nor does it breach any international obligations. “The US itself continues to conduct trade with Russia, so why should China be prohibited from doing the same?” he said.
“It is the US that repeatedly engages in smearing, slandering, and attacking other countries in the UN Security Council chamber. Does the US not recognize how different its behavior is from that of other Council members?” Geng asked.
What the resolution of the Ukraine crisis requires is unity and cooperation, not division and confrontation. Once again, we urge the US to stop its baseless accusations and scapegoating, to invest more in diplomatic efforts, and to contribute genuinely to promoting a ceasefire, de-escalating the conflict, and advancing peace talks, the Geng said.
Kicking the peace can down the road
In discussion with Glenn Diesen
Ian Proud | July 28, 2025
Nice to catch up with Glenn Diesen to discuss recent developments, including my article on Trump’s 50-day ultimatum to Putin, which has now been reduced to 10-12 days, whatever that means. I continue to judge that the threat of secondary sanctions against Russia’s trading partners will have a greater impact on the US than on China, India or any other country that does business with Russia.
Meanwhile, Zelensky’s short-lived attempt to shut down anti-corruption organisations closing in on his cronies has been a big wake up call, not just for European political leaders and journalists, but more importantly, citizens.
Faced with admitting defeat in Ukraine and throwing Zelensky under the bus and continuing with an ineffective foreign policy towards Russia, I judge that Starmer, VdL and others will keep kicking the peace can down the road.
Yet every day the war continues, Ukraine loses more ground and more lives on the battlefield, and slides further towards the status of a failed state. My optimism remains low that the war will end in 2025.
UK cautions it could fight China over Taiwan
RT | July 27, 2025
The United Kingdom could resort to military force against China in the event of an escalation over Taiwan, British Defense Secretary John Healey has said, though he emphasized that London continues to prefer a diplomatic resolution.
Speaking to The Telegraph during a visit to Australia, Healey said Britain would “secure peace through strength” if necessary – marking one of the clearest signals yet from a senior UK official regarding the possibility of direct confrontation with Beijing.
Healey made the remarks as the HMS Prince of Wales, a British aircraft carrier equipped with F-35 fighter jets, docked in the northern Australian city of Darwin. It is the first time in nearly 30 years that a British strike group has arrived in the region. The carrier is on a nine-month Pacific deployment, participating in Australia’s Talisman Sabre exercise and visiting ports in Japan and South Korea.
”If we have to fight, as we have done in the past, Australia and the UK are nations that will fight together. We exercise together and by exercising together and being more ready to fight, we deter better together,” Healey said when asked what London would do in case of an escalation around Taiwan.
The secretary then said he was speaking in “general terms.” According to Healey, London’s approach to Taiwan has not changed.
China considers the island of Taiwan part of its territory under the One-China principle, and insists on eventual reunification. According to the Chinese government, peaceful reunion is preferable, but it reserves the right to use force if necessary.
Taiwan has been self-governed since 1949, when nationalist forces retreated to the island after losing the Chinese Civil War. Most nations, including Russia, recognize Taiwan as part of China. The UK, as well as the US, also formally stick to the One-China principle while maintaining informal ties with Taiwan and supplying it with weapons and ammunition.
Last month, Beijing criticized a British warship’s passage through the Taiwan Strait in Chinese territorial waters. Such actions “deliberately cause trouble” and undermine peace in the area, it said.
Russia’s Laser Weapon Supremacy: Short Guide
Sputnik – 27.07.2025
While the US and its European pals can only dream about developing laser weaponry, Russia is already light years ahead of them.
Unlike kinetic weapons, lasers do not use ammo and do not require reloading, only a power source, Russian military analyst Alexander Artamonov explained to Sputnik.
Lasers can also display a better rate of fire and would be much harder to evade than, for example, a missile.
“It is more efficient in terms of cost and the rate of fire, depending on the nature of the target you want to hit, and in terms of the time it takes to hit the target,” Artamonov remarked.
Nowadays, Russia, the United States and China run laser weapon programs. When it comes to actual working laser weapons, only Russia can present tangible proof.
Peresvet is a Russian mobile laser system designed to ‘blind’ enemy optical and optical-electronic surveillance systems, including drones, reconnaissance aircraft and even satellites. It has already been adopted by the Russian Armed Forces.
“Peresvet lasers are currently deployed not only in the Moscow region but on the front line as well,” Artamonov said, referring to the Ukrainian conflict zone.
Meanwhile, the US simply lacks the technology and know-how – like, for example, a sufficiently powerful and compact power source – to achieve comparable results.
“They conducted tests in the Indian Ocean. The US lasers perform poorly in water mist – under adverse weather conditions, that is,” Artamonov said.
Simply put, Russia’s Western rivals cannot field actual laser weapons whereas Russia is already developing more advanced and deadly military lasers.


