China Is Too Big to Rely on Exports for Growth, IMF Chief Warns

Mexico has enacted tariffs of up to 50% on Chinese goods, a move that has sparked significant backlash from Beijing. This decision comes as lawmakers target countries with which Mexico lacks trade agreements, specifically focusing on China amidst ongoing trade tensions.

The U.S. and Japan conducted joint military exercises as a show of force amid escalating tensions with China, particularly following joint drills by Chinese and Russian military aircraft that prompted Japan and South Korea to scramble their jets. This display of military readiness underscores the growing security concerns in the region.

The U.S. military has seized an oil tanker off the coast of Venezuela, which was allegedly transporting oil from sanctioned nations, including Iran and Venezuela. This operation, confirmed by U.S. officials, highlights the ongoing tensions surrounding oil smuggling and sanctions enforcement in the region.

The European Union has initiated an in-depth investigation into Nuctech, a Chinese company, over potential foreign subsidies that may have enhanced its competitive edge in the European market. The probe focuses on grants, tax benefits, and loans that could have been received by Nuctech, raising concerns about fair competition.

Chinese officials have announced a commitment to prioritize domestic demand in their economic policy roadmap for 2026, signaling a shift in focus towards internal consumption. This decision comes as part of broader efforts to stabilize and sustain economic growth in the country.

China is advancing its artificial intelligence capabilities by leveraging cheap electricity from the world's largest power grid in Inner Mongolia, a move that raises concerns among tech leaders in the U.S. about a potential 'electron gap' in technology. This government initiative aims to establish power supremacy in the region, transforming its energy landscape.

Japan has increased its military readiness by scrambling jets to monitor joint patrols conducted by Russian and Chinese air forces. This escalation follows comments from Japanese Prime Minister Sanae Takaichi, indicating that Japan may respond militarily to any Chinese aggression towards Taiwan that threatens its security. Analysts, including Bonny Lin from CSIS, suggest that these developments indicate China may be preparing to use military force against Japan.

European leaders, including UK Labour leader Keir Starmer, German opposition leader Friedrich Merz, and French President Emmanuel Macron, engaged in a phone call with US President Donald Trump regarding the ongoing Ukraine peace talks, highlighting the international focus on resolving the conflict.