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China’s economy showed signs of slowing in July as factory output and retail sales slowed and housing prices dropped further, according to data released Friday, Associated Press reported.

Uncertainty over tariffs on exports to the United States is still looming over the world’s second-largest economy after President Donald Trump extended a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May. 

As officials worked toward a broader trade agreement, China reported earlier that its exports surged 7.2% in July year-on-year, while its imports grew at the fastest pace in a year, as businesses rushed to take advantage of the truce in Trump’s trade war with Beijing. 

But that also reflected a lower base for comparison, and manufacturers have slowed investments, hiring and production as they watch to see what comes. Chinese manufacturers also have ramped up shipments to Southeast Asia, Africa and other regions to help offset lost business in the U.S, according to Associated Press.

The fifth edition of the joint military exercise between the Nepali Army and the People’s Liberation Army (PLA) of China is scheduled to take place in Nepal from the first week of September.

The exercise, named Sagarmatha Friendship, will focus on counter-terrorism operations, combat tactics and disaster management, according to Nepali Army sources. The two sides have already agreed to begin the 10-day training from Sept 6.

The fourth edition of the joint drill was held last year in Chongqing, near Sichuan province, China. This time, officials from both armies are holding intensive discussions to finalize the modality, number of participants and observers for the exercise.

Defense Ministry Spokesperson Manoj Kumar Acharya described the joint exercise as part of a regular military cooperation program. “Nepal regularly conducts such exercises with India, the US, and China, mainly to enhance capacity and exchange experiences. These drills are not targeted at any particular country,” Acharya told ApEx.

A high-level Nepali Army team led by Major General Prem Dhoj Adhikari, including Brigadier General Dipendra Gurung, Colonel Mani Ram Thapa, Major Pawan Katwal and Captain Mahesh Dhakal, recently returned from Chengdu after attending the Final Planning Conference (FPC) with Chinese defense officials. Preparations are underway also in coordination with the Chinese Embassy in Kathmandu.

The first Nepal-China joint military exercise was held in Kathmandu in April 2017, followed by the second in Chengdu in 2018 and the third in Nepal in 2019. The drills were suspended for several years due to the Covid-19 pandemic before their resumption in China last year.

Meanwhile, Western countries including the US, India, Japan, South Korea and some European nations have expressed reservations over Nepal’s growing military engagement with China, especially at a time when Beijing has been pushing to implement Belt and Road Initiative (BRI) projects in Nepal. Nepal, however, has maintained that such exercises are routine. Alongside China, Nepal also conducts annual Surya Kiran exercises with the Indian Army and regular joint drills with the US military.

Italian orienteer Mattia Debertolis has died after collapsing during the World Games in Chengdu, China. The 29-year-old athlete was found unconscious last Friday during the men’s middle-distance event, held in temperatures above 30 degrees. Despite receiving immediate medical care at a leading Chinese hospital, he passed away four days later, according to BBC.

Debertolis, a member of the Italian national team and a civil engineer pursuing a PhD in Stockholm, was a respected competitor who finished fifth in the 2022 World Cup final. The International Orienteering Federation expressed deep sadness over the loss.

The World Games, a multi-sport event held every four years for non-Olympic sports, said it will continue to support Debertolis’ family and the orienteering community during this difficult time. The cause of his death remains unknown, BBC reported.

The 70th anniversary of the establishment of bilateral relationships between Nepal and China is an important milestone for both nations but it is obvious to say that Nepal has been benefitting the most from this relationship.

Over the years, Nepal proved to be a reliable and trusted partner for Beijing and it is worthy to observe that Kathmandu was able to forge a strong relationship with China without putting its own strategic interests in jeopardy. Co-habiting a space hemmed between India and China, while it can bring multiple advantages, can also be a tricky endeavor.

Balancing off different interests and trade-offs between New Delhi and Beijing requires high skills in navigating foreign diplomacy without forgetting in the equation, the role of the United States that, with the exception of the incumbent administration in Washington, has also been a strong and important partner for Kathmandu.

Thanks also to the presence of different communist parties in the country, Beijing has been able to assert its influence and it is remarkable how swiftly China has been capable of boosting not only its development assistance but also its soft power in Nepal.

I often read mesmerizing reports from reporters invited to China to observe firsthand and then report and explain back home the huge improvements in the lives of Chinese citizens over the last 30 years, enhancements that have been accompanied by a turbo state-led capitalism that supported China’s rise. I have a huge admiration for China’s history and ancient civilization while as someone who grew up in the West, I have also a critical view of certain policies and positions taken by Beijing.

I never expected China to turn itself into a democracy but at the same time, I do not have an uncritical view of some of its approaches related to human rights and freedom of expression. Yet I always had a strong desire to try to understand the nuances of certain policies because in politics as well as in governance, we cannot simplify everything through “white and black” lenses and this is particularly true for a complex country like China.

Because understanding the ways the Chinese Communist Party works and the multilayered governance structure of its political and administrative systems are complex endeavors that require a lot of expertise.

In short, observing and trying to make sense of what is happening in China is indeed a fascinating thing and I do believe that the West should make a much bigger effort at grasping the nuances of China’s political system.

Nepal, despite its links with India, has managed, quite successfully, at building important bridges with China. At the same time, even in relation to the Road and Belt Initiative, Beijing’s flagship global program, Nepal has been able to push back with due respect and smartness. At the same time, the civil society of Nepal has been able to forge stronger relationships with peers in China and slowly a stronger knowledge of the country is emerging and this is a good thing.

Yet, I do feel that members of the press corps and activists should also develop a more holistic understanding of China. I never believed that a paradise on Earth exists, a nation capable of embodying perfection in all its spheres of life where no problems exist. This not only applies to China but also Europe, Australia or the United States of America or any other nation.

As a European, I can be proud of our democratic credentials and freedom of speech I can enjoy back home. I can also certainly assert that the EU has also been struggling with double standards and I wish the Europeans could always walk the talk in matters of upholding human rights domestically but also in their foreign policies. So, I do not take it easily to criticize the second biggest power on Earth, especially when China has been doing a lot for the nation that has been hosting me for many years.

Yet, as Nepal’s consciousness of India has matured over the years because the citizens of the former know very well the mindset, culture, politics and foreign policies of the latter, I do believe that slowly a more “complete” view of China will emerge.

From Beijing’s perspective, this inevitable evolution of views is not necessarily a negative thing because real partnerships require the space also to vent some criticisms or simply different perspectives. As China might sometimes vent its frustrations toward Kathmandu, it is normal that Nepal can be in a position to question certain policies and positions taken by Beijing, not out of disrespect, but simply out of sincere and trustworthy commitment to make the bilateral relationship stronger. This would happen because the rapport between the two will be enhanced when the interests of the smaller partner are better addressed and the latter becomes more assertive.

Nepal learned how to navigate its relationships with its south neighbor, developing a sense of self-confidence in also pushing back whenever needed. At the end of the day, such a level of candid approach might annoy New Delhi but at the end of the day, India knows that the relationships are stronger when both parties feel comfortable at expressing each other even if the positions are different.

Eventually, the same would happen with the northern neighbor. This would represent a new level of relationships between China and Nepal that, rather than being one-sided, are more mutually beneficial because they are more balanced.

Finally, I want to take an appreciative view of what China has been doing for Nepal. With the exception of the Ring Road work that I believe has been poorly designed (see the number of lethal accidents that have occurred so far since the revamped partial motorway has opened from Koteshwar to Kalanki), China has been playing a huge and very generous role in supporting Nepal.

I recently read of plans that China will build a bone marrow transplantation facility at the BP Koirala Memorial Cancer Hospital in Bharatpur, Chitwan.

There are also discussions on important expansions at Civil Service Hospital in Kathmandu, a hospital entirely built by China that, since its start of operations, has already seen important upgrades. These are key infrastructure projects for Nepal, very tangible initiatives at direct benefit of local peoples. At the same time as Nepal is proceeding to graduate from the category of least developed nations, would it not also be essential for Kathmandu to start doing something to help China? I do understand that this might look like a ridiculous proposition but instead I do believe that Nepal is about to reach the point where it can also show gratitude to its northern neighbor.

As Kathmandu tries to learn more about the almost unimaginable improvements in the lives of Chinese people and how Beijing has been prioritizing the right to development, Nepal can also show its templates and success stories. For example, how the nation halved its poverty and levels of social exclusions and how its political system, despite its own issues like instability and corruption, proved to be indispensable for such progress. Nepal could also do much more in promoting its culture and way of dealing with internal problems and differences and why not establish an exchange program where hundreds of Chinese students come here to learn about the country?

If millions of Chinese students have flocked to the USA, why not have some of them also learn Nepal’s way to development and prosperity? Frankly speaking, the university system in Nepal, while having its own share of challenges, also counts with some best practices. Higher education is just one area where Nepal could do something to reciprocate China’s generosity.  Without a doubt, there are many other areas where Nepal can do its bits to show that it is not taking China’s generosity for granted.

Contemporary global discourse is saturated with calls for multipolarity. Leaders from Beijing to Brasília, from Moscow to New Delhi invoke a new world order—one where power is shared more equitably among diverse states and regions, and the dominance of any single power is curbed. Yet, despite these slogans and shifting alliances, the reality remains more concentrated than advertised. The United States continues to act—and be treated—as the primary actor on the global stage, wielding unmatched capabilities across military, economic, technological, and institutional domains. In effect, the world is staging a multipolar play, but the US remains its lead performer—a solo show on a multipolar stage.

Consider military power. As of 2024, the United States accounted for roughly 37 percent of global military expenditures, with a defense budget exceeding $1trn (SIPRI estimate)—more than the next nine countries combined, including China and Russia. Its global military footprint includes over 750 bases across more than 80 countries, reinforcing rapid deployment capabilities and sustained influence in every major region. In contrast, China, the oft-touted peer competitor, has only one overseas military base and far less capacity for power projection.

The United States continues to dominate global affairs through unilateral decisions that often override international consensus. In Ukraine, Washington has led the global response to Russia’s action with over $75bn in aid and a sweeping sanctions regime that even neutral powers like India and Turkey have had to navigate under pressure. In the Middle East, the US carried out the assassination of Iranian General Qasem Soleimani in 2020 and continues to conduct airstrikes on Iranian-linked targets in Syria, Iraq, and Yemen—frequently without international consultation. The pattern holds in Gaza, where the US has repeatedly vetoed UN ceasefire resolutions during the 2023–24 conflict, even as civilian casualties mounted and allies grew uneasy. In these arenas, global powers like China and Russia have issued condemnations, but lack the influence or institutional weight to meaningfully counterbalance American actions.

Latest examples include the US Air Force and Navy attacks on three nuclear facilities in Iran on June 22 as part of the Iran–Israel war, the US support to the Israeli war in Gaza, against Hamas who no longer poses a strategic threat to Israel, even by the standards of some 600 retired Israeli security officials, including former heads of intelligence agencies. Prior to it in December last year, amidst the Russian warnings, the US helped bring down Syria’s Assad regime—the closest Russian ally in the Middle East. Forget the eastward expansion of NATO disregarding its own assurance to Russia that it would not do so.

This solo performance extends to East Asia, where the US continues to maneuver around its “one-China” policy by deepening ties with Taiwan through arms deals, diplomatic visits, and strategic signaling—all while China, despite its rise, remains unable to prevent these moves. In Syria, the US maintains troops and control over resource-rich regions in defiance of Damascus, as Russia looks the other way and China stays diplomatically detached. India, often seen as a rising multipolar player, has largely opted for strategic silence or hedging in each of these conflicts. Across these cases, the US not only acts without deference to global opinion—it also forces others to adjust to its decisions. The result is a world that may appear multipolar in discourse, but in practice still revolves around a single actor exercising disproportionate power with little external constraint.

In economic terms, US financial primacy remains foundational. The US dollar still constitutes around 60 percent of global foreign exchange reserves and is involved in 88 percent of all currency transactions. US capital markets continue to serve as the world’s main liquidity pool, and American technology firms lead in innovation and digital infrastructure. Even US domestic legislation—such as the Inflation Reduction Act and CHIPS and Science Act—has reshaped global industrial policy by incentivizing foreign firms to align with American interests and supply chains, frequently overriding WTO norms or multilateral negotiation channels. See how the US has threatened India with additional tariffs should the latter continue buying Russian oil.

Moreover, the United States retains unmatched normative and institutional leverage. It plays a leading role in NATO, the G7, the Bretton Woods institutions, and dominates voting power in the IMF and World Bank. Even when institutions falter, the US increasingly relies on ad hoc or bilateral mechanisms to maintain influence, such as AUKUS, the Quad, and security pacts in the Indo-Pacific—sidestepping multilateral gridlock with flexible but US-centered architectures.

During his second term, President Trump has intensified the use of economic sanctions and tariffs as central pillars of his foreign policy, particularly targeting Iran and China. A “maximum pressure” campaign against Iran has been reactivated, with a primary goal of driving the country’s oil exports to zero. This has involved a significant increase in sanctions, with roughly three-quarters of new designations since January 2025 aimed at disrupting Iran's revenue streams. For instance, the Treasury Department has targeted over 115 individuals, vessels, and companies across 17 countries, including a “vast shipping empire” led by Iranian oil tycoon Mohammad Hossein Shamkhani. These sanctions have also been extended to third-party entities in China, India, and the UAE for their role in facilitating the trade of Iranian petroleum and petrochemical products, such as the sanctioning of six Indian companies for engaging in over $220m in trade with Iran.

In addition to targeted sanctions, the administration has employed broad tariffs to isolate and pressure nations. The average applied US tariff rate rose from 2.5 percent to an estimated 27 percent in the first few months of the second term, the highest level in over a century. A universal 10 percent tariff was imposed on all imports, while country-specific tariffs were also used to escalate trade disputes. For example, tariffs on Chinese goods peaked at 145 percent, leading to retaliatory tariffs of 125 percent from China. The administration has also leveraged weapons supply as a foreign policy tool. While not directly providing vast amounts of military aid to Ukraine, the US has authorized weapons sales through its Foreign Military Sales (FMS) program, committing approximately $960m and pressuring NATO allies to increase their defense spending to five percent of GDP by 2035. This strategy of combining economic pressure, isolation, and arms sales to allies underscores a transactional and unilateral approach to international relations.

What seems strange is the extreme selfish behaviour of the competitors, a phenomenon reflected in the Nepali expression hul ma jyan jogaaoo (stay safe in the crowd), an attitude that lets a rooster fight the jackal alone! It is not hard to see how the US woos one opponent when it is attacking the other, successfully bringing down the regime in question. Only the US knows the wheel rotates.

Thus, the international system is characterized less by balanced multipolar governance than by fragmented resistance surrounding a persistent unipolar core. The United States continues to act, and be perceived, as the system's indispensable actor, even as rhetorical coalitions challenge its dominance. The world may speak the language of multipolarity, but until that rhetoric is translated into shared institutions, joint rule-making, and collaborative enforcement, the global order remains a solo performance by the United States—backed by unmatched capability and strategic depth—on a stage filled with understudies.

US President Donald Trump indicated on Wednesday that China could face new tariffs similar to those recently imposed on India due to continued purchases of Russian oil. Trump recently added a 25 percent tariff on Indian goods, citing its ongoing energy trade with Russia.

When asked about extending sanctions, he said, “We did it with India. We’re probably doing it with a couple of others. One of them could be China”, Reuters reported.

While China was not mentioned in the official order, Treasury Secretary Scott Bessent had earlier warned Beijing of potential penalties if it continued buying Russian oil.

U.S. and Chinese officials may be able to settle many of their differences to reach a trade deal and avert punishing tariffs, but they remain far apart on one issue: the U.S. demand that China stop purchasing oil from Iran and Russia, Associated Press reported.

“China will always ensure its energy supply in ways that serve our national interests,” China’s Foreign Ministry posted on X on Wednesday following two days of trade negotiations in Stockholm, responding to the U.S. threat of a 100% tariff. 

“Coercion and pressuring will not achieve anything. China will firmly defend its sovereignty, security and development interests,” the ministry said, according to Associated Press.

China is offering parents 3,600 Yuan ($500) per year for each child under three, in its first nationwide effort to raise birth rates. The policy, announced Monday, will be backdated to early 2024 and aims to ease parenting costs for around 20m families, according to BBC.

Despite ending its one-child policy years ago, China’s population continues to shrink and age. Local governments have tested similar incentives, with some offering up to 100,000 Yuan per child. Raising a child in China now costs an average of $75,700—among the highest globally.

China's Premier Li Qiang announced construction had begun on what will be the world's largest hydropower dam, on the eastern rim of the Tibetan Plateau, at an estimated cost of at least $170 billion, the official Xinhua news agency said, Reuters reported.

Commencement of the hydropower project, China's most ambitious since the Three Gorges Dam on the Yangtze, was seized by Chinese markets as proof of economic stimulus, sending stock prices and bond yields higher on Monday.

Made up of five cascade hydropower stations with the capacity to produce 300 billion kilowatt-hours of electricity annually, equal to the amount of electricity consumed by Britain last year, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river tumbles 2,000 metres (6,561 feet) in a span of 50km (31 miles), offering huge hydropower potential, according to Reuters.

Representatives from 36 countries gathered in Brazil on Wednesday for the BRICS Media and Think Tank Forum, focusing on deeper cooperation and a stronger voice for the Global South.

Xinhua President Fu Hua highlighted BRICS’ growing role in uniting developing nations and pushing for fairer global governance. Speakers from China, Russia, Brazil, Mexico, and Central America called for inclusive development, media collaboration, and resistance to external interference.

The forum concluded with a joint report and two new initiatives to boost South-South communication and content sharing, reinforcing BRICS as a platform for global reform, Xinhua reported.

A new report by Senate Democrats warns that President Donald Trump’s foreign policy has weakened US global influence and allowed China to gain ground, according to Al Jazeera.

The report criticizes Trump’s retreat from international institutions, staff cuts at key agencies, and strained ties with allies—moves it says have opened space for China to expand its reach and reshape the global order.

Backed by a Pew survey, the report notes rising global approval of China, with more countries now viewing it as the world’s top economy, while confidence in Trump has dropped sharply among key US allies, Al Jazeera reported.

S. Jaishankar, the Indian External Affairs Minister, met with Chinese President Xi Jinping in Beijing on Monday ahead of the Shanghai Cooperation Organisation (SCO) Foreign Ministers meeting. He conveyed greetings from Indian President Murmu and Prime Minister Modi, underlining India's commitment to improving relations while trying to settle lingering border concerns resulting from the 2020 Ladakh standoff, Firstpost reported.

In discussions with Chinese Foreign Minister Wang Yi, Jaishankar acknowledged the “good progress” made in easing tensions over the past nine months but emphasized the need for continued efforts to avoid disputes. He also called for removing trade barriers to enhance economic ties and urged a firm, shared stance on “zero tolerance” towards terrorism.

This visit marks Jaishankar’s first to China since the military clashes began, signaling a cautious but positive step toward better cooperation, according to Firstpost.

China's exports regained some momentum in June while imports rebounded, as firms rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline, Reuters reported.

Businesses on both sides of the Pacific are waiting to see whether the world's two largest economies can agree on a more durable deal or if global supply chains will again be upended by the reimposition of duties exceeding 100%.

Customs data on Monday showed outbound shipments from China rose 5.8% year-on-year in June, beating a forecast 5.0% increase in a Reuters poll of economists and May's 4.8% growth, according to Reuters.

Imports rebounded 1.1%, following a 3.4% decline in May. Economists had predicted a 1.3% rise.

The Department of Hydrology and Meteorology (DHM) has reached a preliminary conclusion that Tuesday’s devastating flood from the Lhende Stream in Rasuwa was caused by a supraglacial lake outburst in China.

According to satellite data, the flood was likely triggered by the bursting of a supraglacial lake (a lake formed on top of a glacier), located about 36 kilometers north from the Nepal-China border at Rasuwagadhi (latitude 28.4043, longitude 85.6469), at an altitude of around 5,150 meters.

Before the incident, the lake covered approximately 0.74 square kilometers. After the flood, its area was found to have decreased to around 0.60 square kilometers. This change in size indicates a significant release of water, supporting the conclusion that a lake outburst caused the flood in the Lhende Stream.

Flood expert Binod Parajuli from the Department stated that further information is expected from China and upcoming satellite images will help clarify the details of the incident. The Department will continue its study of the event.

The International Center for Integrated Mountain Development (ICIMOD) has earlier also suggested that the flood was caused by the outburst of the glacier lake.

China warned the Trump administration on Tuesday against reigniting trade tension by restoring tariffs on its goods next month, and threatened to retaliate against nations that strike deals with the United States to cut China out of supply chains, Reuters reported.

Washington and Beijing agreed to a trade frameworkin June that restored a fragile truce, but with many details still unclear, traders and investors on both sides of the Pacific are watching to see if it will unravel or lead to a lasting detente.

On Monday, President Donald Trump began notifying trade partners of sharply higher U.S. tariffs from August 1, after he delayed all but 10% of his April duties on most countries to give them time to strike deals with the world's largest economy.

China, initially singled out with tariffs exceeding 100%, has until August 12 to reach an agreement with the White House to keep Trump from reinstating additional import curbs imposed during tit-for-tat tariff exchanges in April and May, according to Reuters.

At 10:30 am, Dundrup Tsering, a businessperson from Nepal, waited at Lektse Port in the city of Xigaze, southwest China's Tibet Autonomous Region, carrying two large bags. “I’ve been doing business here since the opening of the port in Nov 2023, and my family’s living conditions have improved significantly,” said Dundrup Tsering.

In the past, traders set up stalls at traditional border trade points under simple tents with no fixed locations. Their goods were often damaged by rain or snow, and access to basic facilities like toilets was a constant challenge. The opening of the port and the completion of a modern trade market have significantly improved conditions. “We have moved into a proper market with better conditions. It is more convenient and rent-free,” said Dundrup Tsering. “My family had almost no income before the port opened. Now we no longer worry about food or clothing.”

Beyond boosting employment, the new and reopened ports along the China-Nepal border have accelerated regional cross-border trade. “Our products are specifically designed for Nepal’s needs,” said Jiang Zhengguang, chairperson of a machinery company located approximately an hour’s drive from the port of Gyirong.

In the company’s four bright and tidy workshops, workers were busy producing vehicles for export. “We’ve developed innovative new energy vehicles (NEVs) for Nepal’s rugged mountain roads, steep slopes, and high load requirements,” Jiang added. “Nepali customers said that our vehicles offered top-tier quality and performance. We expect annual exports to exceed 2,000 units.”

With the reopening of the ports of Zham, Gyirong and Burang in 2023, NEVs can now reach Nepal from manufacturing hubs within ten days. From January to May this year, Xizang’s import-export volume with Nepal reached about $249m, up 14 percent year on year, according to Lhasa Customs.

To facilitate trade, Lhasa Customs has established a green channel, supporting 24-hour advance declarations, and providing one-on-one assistance. Exports of NEVs, local wool, and fresh fruits are increasing, while imports of Nepalese medicinal herbs and silage fodder continue to diversify as more categories gain market access.

Since 2021, Xizang’s trade with South Asian Association for Regional Cooperation (SAARC) members has totaled $2.08bn, with Nepal accounting for 87 percent. The land ports between China and Nepal have played a vital role.