Outsourcing the industry to China cannot continue, but Europe knows it can no longer count on the US for a solution

The alarm sounded 16 years ago. In 2010, China blocked exports of key rare earths to Japan in a row over disputed islands in the East China Sea. The critical minerals are essential to everything from advanced weaponry and iPhones to electric vehicle batteries and wind turbines, so the rest of the world took note. But it didn’t take much action. China still accounts for about 70% of rare-earth mining globally and 90% of separation and processing.

Then, last year, Beijing forced Donald Trump to back away from his trade war – not with its retaliatory tariffs, but the curbing of rare-earth exports. A scramble for new supplies began in earnest. The year-long trade truce is due to expire in November. The price of erbium, an element essential to communications infrastructure, has already jumped because of fears that export controls will soon be renewed.

As with its approach to Hormuz, the US has mistaken applying pressure for an actual strategy. But Tehran has chips of its own to play

Donald Trump has found a new way to promise victory over Iran. After months of war have failed to force Iran’s capitulation or collapse, his administration has unveiled what the US Treasury secretary, Scott Bessent, calls Operation Economic Outcast: an effort to cut it off from what remains of the global economy and threaten foreign governments, banks and companies with sanctions if they continue doing business with Tehran.

There is no question that Iran is vulnerable. Its economy has been battered by years of sanctions, war and a months-long US naval blockade. Iranian officials acknowledge that oil exports and access to foreign currency have been severely constrained. Ordinary Iranians are already enduring high inflation, currency depreciation and worsening living standards. Further economic strangulation will inflict significant additional hardship.

Sina Toossi is a senior non-resident fellow at the Center for International Policy, where his work focuses on US-Iran relations, US policy toward the Middle East and nuclear issues

China is helping Russia build a faster Shahed. Russia has begun using upgraded Shahed drones with Chinese-made turbojet engines that fly at speeds close to three times those of earlier versions, the Wall Street Journal reported.

The Shahed jet is designed to beat Ukraine's air defenses. Ukrainian interceptors have downed about 90 percent of the older piston-engine drones, which cruise at roughly 180 kilometers per hour, so Russia switched to the jet-powered Geran-4, which cruises at around 500 kilometers per hour.

The engines come from one Shenzhen firm

The turbojets come from Telefly Telecommunications Equipment, founded in Shenzhen in 2010. The company chiefly makes computer hardware and communications equipment, but also sells its own line of micro-turbojets for drones.

China has long been the main clearinghouse for Shahed parts, including engine components, servomotors, and gyroscopes, the newspaper reported.

The company scrubbed its own website

After Ukraine publicized the discovery of Telefly engines in Russian drones, the turbojet section disappeared from the English-language pages of the company's website. The pages in Chinese and other languages still carry them.

China's foreign ministry, which did not respond either, has previously said it strictly regulates exports of dual-use components and rejects unilateral US sanctions on such trade.

Western parts fade as Chinese parts arrive

Downed Shaheds once carried microcontrollers from Texas Instruments in the US and linear regulators from STMicroelectronics, which the newspaper lists as being based in Switzerland. Over time, the Western components are disappearing even as the drones gain better navigation and attack systems, because US Treasury investigations found nearly all the Western parts were being diverted through Chinese intermediaries, often shell companies in Hong Kong.

Ukrainian government researcher Colonel Oleksandr Zaruba said in June that Shaheds now hold more antennas, modems, and SIM cards to correct their flight paths through local mobile networks, and that the components increasingly come from China.

A Chinese national studying in Canada allegedly crossed over into the United States earlier this year to take photos of facilities near the Chicago airport at the direction of a suspected Chinese government official, according to newly filed court records. The Chinese official repeatedly told the student to destroy the SIM cards they used to communicate and stick to a Huawei phone.

There has been a 76% increase in under-construction gas-fired projects amid ‘frenzy’ to build more datacenters

The US has surged ahead of China in the building of new gas-fired power generation, largely to feed a boom in artificial intelligence (AI) that is adding vast amounts of planet-heating emissions, a new analysis has found.

For decades, China’s rapid economic growth has seen it outpace the US in the addition of new gas power generation but a recent “frenzy” in datacenter construction for AI has reversed this, said Global Energy Monitor (Gem) in its new report.

Ukraine celebrated 35 years of independence on 24 August, and Ukrainian President Volodymyr Zelenskyy marked the day with an address listing what the invasion has cost Russia, published by the President's Office. He said Putin is mortal and out of time to understand Ukraine, and said Ukraine will not hand over Donbas or save the Kremlin half a million soldiers. He also asked partners for sanctions and weapons strong enough to force an end to the war.

Russia has been invading Ukraine since 2014 and fighting a full-scale war on it since 2022, and Ukraine now supplies a growing share of the missiles and drones it fights back with, while the air defense shielding its cities still hangs on decisions taken in Washington and European capitals—which is what makes a holiday speech a statement of what Kyiv will not trade and what it needs built or delivered next.

The losses he read back to Moscow

President Zelenskyy turned from his own citizens to Russia partway through the speech. 

"You wanted to take all our Ukraine, all our land; instead, you lost your oil refineries, your fleet, your profits, your entire generation that you sent into the meat grinder," he said. 

A country that wanted Ukraine erased from the map, he added, is now absent from the international agenda of the future civilization.

He set Moscow's self-image against its filling stations. 

"For 27 years, the head of Russia has talked about greatness, while Russia is standing in lines for gasoline," Zelenskyy said. 

Moscow and St. Petersburg brought back gasoline rationing this month, and Rosneft capped fills at every station in the country.

On the Russian leader he was blunt. 

"Putin hopes that we are tired. But we know that he is mortal," he said, adding that Putin never understood Ukraine and now will not have the time to.

A fifth Independence Day at war

Before the holiday, Russian ballistic missiles hit Kyiv and its main airport hub twice in 24 hours. A solution to Russian ballistic terror must be found, Zelenskyy said, and that gamble must not pay off. 

Russia does not want peace, it wants mobilization, the president said. Ukraine will not let Moscow seize the initiative or convince Europe that surrendering Donbas ends the war. Russia keeps pushing back the dates for taking all of Donetsk Oblast and will keep pushing them back, he said.

The president called Ukraine's defense industry a giant that forges independence around the clock, and demanded more from it. Mid-range strikes cut Russian logistics and long-range weapons cut Russian profits, he said, listing Moscow, Tuapse, Tula, Ryazan, Olenya, and Omsk among the places already hit. 

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Ukraine's home-built Flamingo cruise missiles should stop being a rare species and arrive en masse: "They must 'winter' in Russia," Zelenskyy noted. 

Previously, Flamingos have hit defense plants more than 1,000 km from the border, though they still appear in strikes in small numbers.

"China should no longer remain silent"

Ukraine is not asking anyone to fight for it, the president said — only for everything needed to stop the war before Putin starts the next one. He wants sanctions that make Russians howl and Moscow at a negotiating table, and said Washington has lost its illusions about Russian intentions. Europe must be Europe, he said: united, ambitious, brave. 

"China should no longer remain silent," he added, saying Beijing must cool the ardor of someone who puts on a sailor's uniform and cap and talks about a nuclear strike—a description that fits Putin.

China-based retailer swung to $99m loss in first quarter and faces scrutiny over its environmental footprint

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Shein, which built a fast-fashion empire on what seemed like impossibly low prices, has been forced to lower its own valuation in a cut-price stock market float, after falling into the red earlier this year.

The online retailer will list on the Hong Kong stock exchange on 1 September at a valuation of close to $27bn (£19.8bn), significantly down from a near-$100bn private market peak four years ago.

I understand the pressure on AI companies to rush forward. But employees are right to be concerned

Last month, more than a thousand employees at frontier AI companies signed a letter asking the US government to find a way to “pace” AI development, citing the risk of the technology spiraling out of human control as it begins to build itself.

They were right to be concerned: just days earlier, two AI models that OpenAI was testing internally escaped the test environment, then autonomously hacked the company Hugging Face and at least three other online services. A few days after that, Anthropic announced that some of their models had also broken out and hacked other companies during testing.

A weak yuan guarantees Beijing massive trade surplus even as the White House tries tamp down on Chinese imports

Since China offered a truce in the trade war last October following its threat to deprive the United States of rare-earth magnets, the Trump administration has been happy to stop escalating. After all, imports from China have been falling, down by 40% in the year to June, compared with the same period in 2024. Best to declare victory and call it a day.

But the US hasn’t won this battle – and there’s strong evidence to show it’s too chicken to really try.