Geopolitics: U.S.-China relations remain tense. In the past week, President Trump said he would restore 55% tariffs on Chinese imports and threatened new import bans, undoing an August trade truce. China quickly retaliated – for example, it launched an antitrust probe of U.S. chipmaker Qualcomm and announced higher port fees on U.S.-linked ships. Despite the friction, diplomatic channels continue: a bipartisan U.S. House delegation visited Beijing (the first such trip since 2019) to “break the ice” and urge dialogue. Trump and Chinese leader Xi Jinping also spoke by phone, reportedly making progress on a TikTok ownership deal and scheduling a face-to-face meeting in late October.
Europe & UN: The IMF/World Bank annual meetings in Washington drew major coverage. U.S. Treasury leaders (from Bessent to Fed officials) emphasized that an AI-driven investment boom is powering U.S. growth, while warning that policy uncertainty (shutdown, trade wars) could slow thingsreuters.comreuters.com. NATO foreign ministers met this week to discuss Russia’s war in Ukraine; no breakthrough was announced, but work continues on sending air defenses to Kyiv. Meanwhile, UN agencies report that global food insecurity is expected to fall slightly in 2026 as harvests recover, but many developing countries remain vulnerable to rising debt costs.
South Asia: In regional news, India and Pakistan resumed limited direct flights this week after a months-long suspension. Pakistan’s new budget focus – to be presented next week – reportedly will aim to boost consumption via tax cuts, as growth slows. Tensions along the Line of Control (India-Pakistan border) have eased in recent weeks, though both sides remain on alert. India-China ties have seen limited engagement: a joint statement at a UN meeting reaffirmed commitment to dialogue, but border talks are still at a standstill with only low-level military and diplomatic contacts continuing sporadically.
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