President Xi Jinping's address on CPC’s 105th anniversary:
Five major takeaways on Achievements, National Rejuvenation, and Reunification
Acsah H
On 01 July, China’s President Xi Jinping addressed a gathering in Beijing to mark the 105th founding anniversary of the Communist Party of China (CPC), outlining the Party's achievements, future priorities, and vision for China's development and global role. During the event, he conferred the July 1 Medal, the Party's highest individual honour, on distinguished Party members, in the presence of senior leaders including Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang, Li Xi, and Vice-President Han Zheng.
Following are the five takeaways from Xi's address.
1. CPC as the driving force behind China's transformation
In his address, President Xi presented the party’s history as the "most magnificent epic" of China. Underlining that China over the century has undergone tremendous change that can be measured. This has lifted millions of people in China out of poverty and connected its regions with modern infrastructure. He also added that China is emerging as a global leader in various sectors of manufacturing, scientific innovation, digital technology, and renewable energy. Xi emphasized the important role of CPC in adapting the ideology of Marxism to China’s national conditions. He also added that: "Time stops for no one, and neither does history,” pressing the party to continue the pursuit of socialist modernisation of the country and not to slow the pace. This demonstrated that China’s model of modernisation is different from that of the western model that has been influencing countries around the world. He recognised modernisation not simply as one that focuses on economic growth but on the improvement of the overall quality of life for people. He reaffirmed the timeline to realise modernisation by 2035 and to build a great modern socialist country by mid-century.
2. A faster push towards national rejuvenation and "world-class" military
First, President Xi stated that the CPC opened the path for national rejuvenation by influencing the course of world history and placing China as a crucial player in global governance. Referring to China’s global role through initiatives that promote development through infrastructure, trade, investment, green initiatives, and technology cooperation. He framed party's central mission as delivering "the great rejuvenation of the Chinese nation.”
Second, President Xi also urged the party to have absolute leadership over the armed forces and the People's Liberation Army to meet its centenary goals by its founding anniversary on 01 August 2027, wanting it to be a "world-class" force. Military strength and political loyalty are being pursued as one project.
3. CPC’s ideology remains the core of governance
President Xi reiterated that "This country is its people; the people are the country.” He emphasised that all governance efforts must translate into tangible benefits for the public, driving shared prosperity and meeting the populace's aspirations for a better life. He vowed to win the "tough, protracted and all-out battle against corruption" and to eliminate "all viruses that erode the party's healthy body" and factors undermining its "purity." This came after he oversaw investigations of millions of officials, including top generals. The anti-graft message is not a new announcement but rather a signal of intensification and continued demand for discipline.
4. Support for adaptability and building international order
President Xi also warned that China faces a period where "strategic opportunities, risks and challenges coexist," urging the Party to withstand "high winds and rough waves" and even "violent storms." He did not name specific threats; however, sources fill the gaps and point to Western curbs on technology. He stated that China does not seek to replace the existing global system but aims to change and adapt it. He called for building "a new type of international relations" based on cooperation rather than zero-sum games or hegemony.
5. CPC’s mission to complete reunification
President Xi repeated that resolving the Taiwan question and achieving "complete reunification" is the party's unswerving historic mission. As he places emphasis on sovereignty and national independence, this reflects China’s domestic priorities and its foreign policy principle that countries should resolve their own internal affairs without external interference. Under the goal of unification, Xi pledges to crack down on independent "separatist forces" and oppose external interference while also calling for cross-strait exchanges and economic integration.
Acsah H is a postgraduate student at the Department of Geopolitics and International Relations, Manipal Institute of Social Sciences, Humanities and Arts, MAHE, Manipal, Udupi. She is currently a research intern at the National Institute of Advanced
PM Takaichis’s India visit:
Economic Security, Artificial Intelligence and Energy Resilience
Deb Dutta
What happened?
During 01–03 July, Japan’s PM Sanae Takaichi took part in the 16th India-Japan Annual Summit held in New Delhi. She met with PM Narendra Modi to review bilateral cooperation and discuss regional and global issues. The summit was followed by Modi's visit to Tokyo in August 2025.
During the summit, three major joint statements have been signed on Economic Security, Artificial Intelligence, and Energy Resilience focusing on strengthening supply chain resilience, advancing cooperation in emerging technologies and AI governance, and enhancing collaboration on clean energy, energy transition, and resilient energy systems.
Additionally, 129 Memoranda of Understanding signed by the two countries at an Economic Forum that was held along with the summit. More than 150 Japanese firms attended this forum, including Suzuki, Itochu, and Toyota Tsusho.
What is the background?
1. A brief note on India-Japan relations
The India-Japan relationship has evolved steadily over the years since their civil nuclear cooperation agreement in 2015. In 2016, India and Japan had inaugurated the India-Japan Act East Forum that focused on building connectivity in India’s Northeast region. Japan is the single largest provider of Official Development Assistance to India, and this includes concessionary loans for building the Mumbai-Ahmedabad bullet train. This meeting follows up on the Joint Vision for the Next Decade that was signed at the 15th summit in Tokyo in August last year.
2. Growing emphasis on economic security
The growing emphasis on economic security roadmap are driven by specific challenges that have arisen recently. The challenge regarding the fragility of global supply chains for semiconductors and critical minerals was clear during the pandemic and growing geopolitical tensions. China's monopoly on the processing of rare earth minerals, together with the ability of this country to apply export restrictions in political interests, has made it necessary for the two countries to look for another source of raw materials. In the case of Japan, India is an option, seen as an alternative source of workers and production facilities. For India, cooperation with Japan helps the country obtain investments and advanced technologies to produce semiconductors. The lack of chips in 2021-2023 demonstrated the threat of having a limited number of foreign partners.
3. Expanding cooperation in Artificial Intelligence and emerging technologies
This cooperation reflects pressures on both sides. Japan's shrinking working-age population has created a shortage of skilled technology workers, while India has one of the world's largest pools of engineers and software talent. Global competition in AI is intensifying, led mainly by the United States and China, and this is pushing middle powers like Japan and India to pool resources rather than depend entirely on either. Working together also allows both countries a greater say in shaping AI governance standards, instead of simply adopting rules set by larger powers.
4. Evolving partnership in energy transition and resilient clean energy
Such collaboration is driven by common exposure to energy shocks. Importing a lot of energy in the form of oil and gas exposes both countries to the dangers of Middle Eastern instability and the Strait of Hormuz. Recent events in the Middle East highlight this vulnerability as well as how fast energy prices could go up. Climate-related promises also force both countries to move away from fossil fuel-based energy towards energy diversity. Japan is a good partner because of its capital investment and technological advances in nuclear energy and other sources of clean energy. India’s advantages in this regard include the potential of scale in renewable and hydrogen-based energy projects.
What does it mean?
First, economic security, technology, and energy become the core pillars of the relationship. The visit shows these factors as core pillars and not side topics. Cooperation is moving from general goodwill toward concrete joint initiatives, seen in the three joint statements and the scale of Japanese business participation at the summit. Japan is now treating India as a strategic and economic partner, not simply an aid recipient.
Second, China remains the unspoken subject of this summit. Much of the push behind economic security and energy resilience comes from a shared wish to reduce dependence on China, whether for rare earths, semiconductors, or energy routes. Yet neither side named China directly in their statements. This shows both countries want to hedge against China without provoking it, keeping the partnership deliberately ambiguous on this point.
Third, doubts about the Quad's future may be pushing Japan to invest more in this one-on-one relationship. The Trump administration has taken a more transactional approach toward China. This has raised questions about how committed the US remains to countering Beijing in the Indo-Pacific. Growing bilateral cooperation in technology and energy suggests Japan now sees its direct partnership with India as more reliable and durable than the wider Quad grouping.
Deb Dutta completed his graduation from the Department of Political Science, Sir Aurobindo International Centre of Education (SAICE), Puducherry. He is currently an intern at NIAS.
TWTW Regional Roundups
From East Asia to the Americas: News from around the world
AaraV Bhaskar, Acsah H, Aishal Yousuf, Akshath Kaimal, Anshika Thakur, Aparna A Nair, Avaneesh S, Brighty Ann Sarah, Dhivya K M, Lekshmi MK, Madhura Meenakshi Tanikella, Nithin V, Radhika M Agarwal, R Preetha, Sreemaya Nair, Yesasvi Koganti
CHINA & EAST ASIA THIS WEEK
China and India resume cross-border trade at Lipulekh Pass after six years
On 01 July, SCMP reported that China and India have resumed cross-border trade through the Lipulekh Pass in the Himalayas in the latest sign of a cautious rapprochement. This development came after six years, shortly after China’s foreign minister Wang Yi’s visit to New Delhi. According to the Press Trust of India, 26 Indian traders from Uttarakhand crossed the Taklakot market in Tibet on 26 June. More traders are said to cross into Tibet until September. According to the latest literature, the reopening of the pass as a goodwill gesture from Beijing, however, warned the long-standing border dispute would weigh on the relationship between the two countries.
(“Himalayan pass reopens as ‘goodwill’ gesture in China-India thaw,” SCMP, 01 July 2026)
China calls for early restoration of safe and unimpeded passage through the Strait of Hormuz
On 03 July, Global Times reported that China’s Foreign Ministry spokesperson Guo Jiakun stated that the Strait of Hormuz is a strait used for international navigation, and an early restoration of safe and unimpeded passage through the strait serves the interests of all parties. This statement was in response to a question on a Bloomberg report about EU countries' acceptance of fees from Iran and Oman when ships transit the Strait of Hormuz. He added that Matters concerning navigation through the strait ought to be properly addressed to respond appropriately to the widespread concerns of the international community and expressed China’s willingness to maintain communication with relevant countries and the international community on this issue.
(“Early restoration of safe and unimpeded passage through Strait of Hormuz serves interest of all parties: Chinese FM,” Global Times, 03 July 2026)
UNCLOS has no authority to handle territorial sovereignty, says a Ministry of Natural Resources report
On 30 June, China Daily reported that the China Institute for Marine Affairs under the Ministry of Natural Resources released a report titled "Assessment Report on the United Nations Convention on the Law of the Sea (UNCLOS): Achievements, Positioning, and Challenges." The convention's historical achievements and legal nature are examined in this report. The report stated that UNCLOS is a significant achievement in the postwar development of the international legal order governing the seas and oceans and is important in upholding multilateralism, opposing hegemony, and promoting marine and maritime cooperation. This year marks the 30th anniversary of China's accession to UNCLOS. The lead author and the Law of the Sea Division at the Ministry of Natural Resources' China Institute for Marine Affairs Deputy Director also referred to the South China Sea Arbitration initiated by the Philippines. He said: "The UNCLOS only regulates matters related to maritime rights and has no authority to handle territorial sovereignty disputes. The core of the China-Philippines dispute is precisely the issue of territorial sovereignty over islands and reefs." The report also calls for the implementation of China's four global governance initiatives to promote just and reasonable global ocean governance.
("China releases assessment report on UNCLOS, exposing Philippines' core tactics of abusing the Convention," Global Times, 30 June 2026)
China’s President Xi delivers speech marking CPC's 105th Anniversary; Honours model members and reaffirms Taiwan reunification
On 01 and 02 July, Xinhua and Global times reported that China’s President, Xi Jinping praised the 105 year history of Communist Party of China as the “most magnificent epic” of China. The general secretary of the CPC central committee, Xi Jinping during his address said, "Time stops for no one, and neither does history,” urging the party to continue the pursuit of socialist modernisation of the country. He stated that the party opened the path for national rejuvenation and has influenced the course of world history. He also stressed on the party having complete control of the military, wanting to make the People's Liberation army a top global force by 2027. He stated that uniting Taiwan with China is the party’s most important mission. Additionally, promised to take strong action to stop any efforts for Taiwan’s independence and block external involvement. China’s Foreign Ministry spokesperson, Guo Jiakun stated that political parties, leaders and experts of various sectors from many countries have congratulated the CPC. The celebration included special museum exhibits and the July 1 Medal award ceremony. Eight individuals received the award, including a grassroots mediator, a veteran, a village party official, a rural doctor, a community worker, an agricultural specialist, a mechanical engineering expert, and a petroleum refining engineering expert who was honoured posthumously.
(“Xi hails CPC's 105-year 'epic,' urges building modern socialist China,” Global Times, 02 July 2026; “Xi hails CPC's 105-year 'epic,' urges building modern socialist China,” Xinhua, 01 July 2026 )
Iran eyes potential resumption of oil sales to Japan
On 04 July, The Japan Times reported that Iran has begun negotiating with Japanese companies under a US sanctions waiver, which allows it to resume oil sales. The waiver is part of the 60-day peace talks between Tehran and Washington. National Iranian Oil Company officials stated that they had approached traditional customers including Japan, and expressed potential resumption of oil sales. Although unconfirmed from Japan’s Trade Ministry, anonymous officials stated that such deals may not happen due to existing contracts, shipping times and lack of insured ships.
Japan increases energy ties and major investment deals with India
On 02 July, The Japan Times reported that Japan and India are set to increase cooperation in artificial intelligence, economic security, clean energy and defense over a 10-year framework. Prime Minister Sanae Takaichi is currently on a three-day state visit to India, where she held bilateral talks with India’s Prime Minister Narendra Modi. Takaichi stated that the two sides exchanged around 120 cooperation documents and investment deals worth USD 12.41 billion. The two sides also signed agreements to expand biogas and organic fertilizer production and assistance to produce ammonia in India, which comes considering Japan and India are heavily dependent on energy imports. The two leaders also agreed to increase joint training in the Indian Ocean, promote cooperation on naval vessel maintenance and equipment cooperation. They also agreed to hold frequent consultations and hold another meeting of their defence and foreign ministers by year-end as part of the “two-plus-two” framework.
(“Takaichi looks to India in the face of supply chain and energy concerns,” The Japan Times, 02 July 2026)
Seoul protests the entry of Chinese and Russian military aircraft into its airspace
On 28 June, The Korea Times reported that South Korea had protested the entry of 10 Russian and Chinese aircraft into its air defence zone with their respective embassies. Russia and China held its 11th annual air defence patrol on Sunday. The Defence Ministry stated that 10 aircraft briefly entered and left South Korea's air defense identification zone (KADIZ) above the country's eastern and southern waters. The ministry requested both countries “to take measures to prevent a recurrence of such activities," and added that “our military will continue to respond proactively to activities related to KADIZ in line with international laws to safeguard the country's airspace.”
South Korea’s energy Minister reveals roadmap to construct additional nuclear reactors to meet the energy demands for AI and semi conductors
On 03 July, The Korea Times reported that South Korea’s government is reviewing plans to construct additional nuclear reactors to meet the energy demands from semiconductor manufacturing and AI data centres. Minister of Climate, Energy and Environment Kim Sung-hwan stated that “It will not be easy to meet the growing demand with renewable energy alone, so we need to promptly examine whether additional nuclear reactors should be built.” He further added that the planned semiconductor clusters in Yongin, Gyeonggi Province and the southwest regions would require 15 nuclear reactors with a capacity of 1.4 gigawatts each. He also addressed the concerns of water consumption by the data centers, proposing that 1 million tons of water could be secured through existing dams in the Seomjin and Yeongsan basins.
(“Gov’t considers building more nuclear reactors to meet chip, AI power demand,” The Korea Times, 03 July 2026)
Taiwan prosecutors detain individuals suspected of smuggling advanced AI chips to China
On 01 July, The Taipei Times reported that Taiwan's Keelung Provincial prosecutors had detained three executives over the alleged smuggling of USD 21.99 million worth of advanced Nvidia AI chips to China via Hong Kong and Macau. The Keelung District Court approved the prosecutors’ request to detain an Albatron Technology Co., Vice President surnamed Lu, and Managers from Super Micro Computer Inc’s Taiwan branch surnamed Wang and Lin. The prosecutors office had found 50 sets of Nvidia's GB300 AI server chips in an employee's warehouse on 20 May, where it was set to be exported to Japan and then to Hong Kong. An unsealed US court indictment stated that the US Department of Justice charged the founders and managers of Super Micro Computer Inc with attempting to divert USD 2.5 billion worth of Nvidia chips to China.
Taiwan: Army to hold live-fire missile drills next week
On 04 July, The Straits Times reported that Taiwan’s army is set to hold another live-fire missile test using four Stinger missile variants. The Stingers are a short-range Man-Portable Air Defence Systems (MANPADS) and it would mark the first usage of the missile series. The Shen Kung and Shen Yin missile precision firing exercises would be conducted near Pingtung County’s Manjhou township. Army officials stated that the exercises would see the Stinger Manpads, dual-mount Stinger systems, AN/TWQ-1 Avenger Air Defence system and helicopter launched Stinger missiles. Defence Minister Wellington Koo stated that around 2,621 Stinger MANPADS will be delivered in two-phases, raising up to 5,000 systems delivered by the end of the year.
("Army to hold missile firing drills next week: source," Taipei Times, 04 July 2026)
SOUTHEAST ASIA THIS WEEK
Indonesia: Papuan rebels kill American pilot, burn aircraft in Yahukimo
On 02 July, Reuters reported on the armed separatist group West Papua National Liberation Army (TPNPB) shooting dead American pilot Nicholas F Gosselin and setting his plane on fire after it landed in the Yahukimo region of Highland Papua province, Indonesia. TPNPB spokesperson Sebby Sambom said the attack was a message to both the Indonesian and US governments for failing to address the root causes of the conflict in Papua, saying that the aircraft had been frequently dropping Indonesian military personnel into rebel-controlled areas. The plane, operated by PT AMA and carrying seven Papuan passengers, had flown in from the city of Wamena. Indonesian authorities confirmed the aircraft was found burned but could not immediately verify whether it had been attacked or whether the pilot was killed.
("Rebels in Indonesia's Papua kill American pilot, burn plane, spokesperson says," Reuters, 02 July 2026)
Myanmar: BIMSTEC engages with junta ahead of security advisers’ meeting
On 30 June, Mizzima reported that according to Myanmar Foreign Ministry and BIMSTEC Secretariat‚ BIMSTEC Secretary General Indra Mani Pandey visited Naypyidaw from 22 to 24 June to meet with junta chief Min Aung Hlaing and other senior junta leaders‚ ahead of the 5th BIMSTEC National Security Advisers' Meeting‚ slated for 16 July in New Delhi‚ India․ According to BIMSTEC‚ Min Aung Hlaing reiterated Myanmar's commitment to deepen regional cooperation under the grouping․ Pandey attended meetings on topics such as counter-terrorism‚ transnational crime‚ maritime security‚ food security‚ climate and energy․
(“Myanmar’s junta secures another diplomatic audience as BIMSTEC head visits Naypyidaw,” Mizzima, 30 June 2026)
Myanmar: Human Rights Watch urges Japan to reject the junta's call for development aid
On 03 July, Mizzima reported that Human Rights Watch (HRW) urged Japan to reject the Myanmar military junta's request to resume development aid. The appeal came after parliamentary spokesperson Khin Khin Soe asked the Japanese government on 30 June to restore assistance, arguing that ordinary citizens were suffering from the suspension of aid. HRW said the junta's claim was inconsistent with its actions since the 2021 military coup, including widespread human rights abuses, attacks on civilians, and restrictions on humanitarian assistance. The organisation noted that Japan suspended new development assistance after the coup and warned that resuming it would risk legitimising the military regime. HRW also cited previous cases in which Japan-funded civilian assets were allegedly used by the military and military-linked companies benefited from Japanese-funded projects. It urged Japan to continue humanitarian assistance through independent civil society organisations while working with international partners to increase pressure on the junta through targeted sanctions and accountability measures.
("Japan should reject Myanmar junta's call for development aid: HRW," Mizzima, 03 July 2026)
Microsoft consortium to build 3,600 km undersea cable linking India and Southeast Asia
On 02 July, Reuters reported on a consortium including Microsoft, Singapore's Lightstorm, Tata Communications, Singapore Telecommunications, ASEAN Cableship and Japan's NEC Corporation announcing plans to build the I-2SEA undersea cable connecting India with Malaysia and Singapore. The cable will span 3,600 kilometres and have landing stations in Machilipatnam in Andhra Pradesh, where Meta and Alphabet have announced data centres, with operations expected to begin in the fourth quarter of 2029. The project is designed to support artificial intelligence (AI), cloud and hyperscale workloads as India's data centre capacity, currently at 1.4 gigawatts, is projected to double by 2027 and grow fivefold by 2030. Undersea cables currently carry roughly 95 per cent of the world's internet traffic.
("Microsoft partners with Singapore's Lightstorm to build India-Southeast Asia undersea cable," Reuters, 02 July 2026)
Thailand: Drug gangs use social media to recruit airline staff as drug couriers
On 03 July, Reuters reported on Thai authorities raising alarm over international drug trafficking networks using fake social media accounts on platforms including TikTok and Facebook to recruit airline cabin crew as drug couriers. The warning came after a Thai Airways flight attendant was charged in Australia with importing over one kilogram of heroin hidden in tote bags, allegedly after agreeing to carry the bags for 8,800 baht (USD 265). PM Anutin Charnvirakul said at least six commercial drug trafficking cases involving travellers from Thailand had already been recorded in the first half of 2026. Authorities separately seized 24.38 kilograms of heroin concealed in silk clothing, coffee sachets and winter jackets that were destined for Australia and Taiwan.
("How drug gangs use social media to recruit Thai air crew as couriers," Reuters, 03 July 2026)
Vietnam and South Korea: Hanoi is in talks with KEPCO for a second nuclear power plant
On 03 July, The Straits Times reported on Vietnam's Ministry of Industry and Trade announcing it would select a foreign partner in the third quarter of 2026 to jointly develop the Ninh Thuan 2 nuclear power plant with state energy firm Petrovietnam. The plant is expected to have a capacity of up to 3.2 gigawatts, with nuclear power set to come online in the country by 2035. The ministry cited positive initial discussions with South Korea's Korea Electric Power Corporation (KEPCO) as a possible partner. The foreign partner will be required to transfer at least 30 per cent of its nuclear technology to Vietnam, arrange a special loan at an annual interest rate below 3 per cent and train Vietnamese staff for the project. Japan had previously dropped out of the running in December 2025, citing a tight timeline.
("Vietnam held talks with South Korea’s KEPCO as it seeks foreign partner for second nuclear plant," The Straits Times, 03 July 2026)
SOUTHASIA THIS WEEK
Bangladesh: Dhaka and Tokyo explore closer defence cooperation
On 29 June, Dhaka Tribune reported that Bangladesh and Japan have held discussions to enhance military and defence collaborations at a meeting involving Japanese Ambassador Saida Shinichi and Prime Minister's Defence Adviser Brigadier General (Retd) Dr AKM Shamsul Islam. The two parties discussed the assistance from Japan in terms of technology for the modernisation of the Bangladesh Armed Forces. Other areas of discussion were increasing military training programs, exchange of defence delegations, capacity building in professional and technical aspects, and defence equipment and technology.
("Bangladesh, Japan discuss expansion of defence cooperation," Dhaka Tribune, 29 June 2026)
Bangladesh: Mid-monsoon flooding to occur according to FFWC
On 03 July, Dhaka Tribune reported that the Brahmaputra and Narmada river basins in Bangladesh are very likely to experience flooding in the months of July and August this year, according to the Flood Forecasting and Warning Centre (FFWC). It is the synchronisation of these two rivers that poses a major risk, as back in 2004, when the peaks of the two rivers joined, a severe flood further escalated. Previous data concludes that historically this mid-monsoon period has witnessed the country’s most catastrophic disasters. On 02 July, the FFWC reported that the water levels of the Brahmaputra-Jamuna river system have decreased but are expected to increase over the week.
(“Bangladesh likely to face flooding in July-August,” Dhaka Tribune, 03 July 2026)
Bangladesh: PM Tarique says at least 2,000 were killed in July uprising
On 04 July, Dhaka Tribune reported that Prime Minister Tarique Rahman said at least 2,000 people were killed and more than 30,000 were injured in the July mass uprising. He stated that the dead included 60 children, according to United Nations figures and that the government would ensure justice for every killing under existing laws. PM Tarique made the remarks as the chief guest at a memorial event for uprising victims held at the China Friendship Conference Centre in Dhaka on Saturday, organised by the central committees of "July 24 Shaheed Families" and "Amra July Joddha." The session was chaired by State Minister for Liberation War Affairs Ishraque Hossain, with Home Minister Salahuddin Ahmed, Public Works Minister Zakaria Taher Sumon, Law Minister Asaduzzaman and Chief Whip Nurul Islam Moni. PM Tarique announced that proper recognition would be given to those who died to free the country from fascism and alleged that six million BNP leaders and activists had been forced from their homes under the previous Sheikh Hasina government. He added that trials would be conducted fairly under full legal procedures, without bias.
("PM Tarique: At least 2,000 killed in July uprising," Dhaka Tribune, 04 July 2026)
Bhutan: ADB gives approval to USD 13 million financing package for resilient urban development
On 30 June, Kuensel reported that the Asian Development Bank (ADB) has decided to grant a USD 13 million financing package to develop resilient urban infrastructure and provide affordable housing in Bhutan, specifically in the cities of Thimphu and Phuentsholing. This financing package comprises a USD 5 million concessional loan, a USD 5 million grant from the Asian Development Fund, and a USD 3 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific. The financing offer is aimed at improving the drainage systems, water supply system, sewerage systems, roads, flood protection systems, and pedestrian infrastructures in Phuentsholing. Alongside that, the financing will help in building 56 affordable rental houses for poor families, particularly those that are headed by women.
("ADB approves USD 13 million package for resilient urban development," Kuensel, 30 June 2026)
Bhutan: Government invests BTN 1 billion to modernise tax administration
On 04 July, Kuensel reported that the government has invested approximately BTN 1 billion in the Bhutan Integrated Tax System (BITS) 2.0, covering both the core digital platform and supporting infrastructure. The system is designed to modernise tax administration by integrating taxpayer registration, tax filing, payments, audits, and compliance into a single digital platform. The initiative aims to improve administrative efficiency, reduce manual processes, strengthen transparency, and enhance revenue collection. The report noted that the government expects the system to simplify tax compliance for businesses and individuals while enabling better monitoring and enforcement. Officials stated that the investment is intended to support long-term digital governance and improve public service delivery, despite concerns raised over the project's overall cost.
("Govt. spends Nu 1B on digital tax system," Kuensel, 04 July 2026)
Maldives: Parliament Committee moves to restrict former presidents’ MNDF security at protests
On 30 June, The Sun reported that the Maldives Parliament’s Security Services Committee has approved amendments to MNDF (Maldives National Defence Force) VIP security policies that would deny former presidents state-sanctioned security protection while attending political protests. The amendment, proposed by Abdulla Shareef of the People’s National Congress, was passed using the ruling party’s parliamentary majority despite objections from the opposition. The move comes after the formation of an anti-government alliance involving former presidents Mohamed Nasheed, Ibrahim Mohamed Solih, and Abdulla Yameen Abdul Gayoom, who have all declared their intentions to intensify political opposition against President Mohamed Muizzu’s administration.
(“Former presidents to be denied MNDF security when attending protests,” The Sun, 30 June 2026)
Nepal: Strict media surveillance raises concerns over press freedom
On 04 July, according to The Kathmandu Post, during the first 100 days of Prime Minister Balendra Shah's administration, concerns over the freedom of the press have increased. “From now on, if anyone attempts to insult or assassinate the character of any citizen, the Home Ministry will take this matter very seriously,” stated Home Minister Sudan Gurung after assuming office for the second time. Alongside such statements from government officials, sustained online harassment against journalists and the recent court ruling have all added to "a hostile online environment." Concerns over state-owned media channels having the exclusive right to public advertising have also been raised. Journalists state that this could financially deteriorate independent news organisations.
(“Balendra Shah government’s first 100 days raise press freedom concerns," The Kathmandu Post, 04 July 2026)
Sri Lanka: IMF says economy remains resilient despite Middle East shock
On 01 July, Daily Mirror reported that the International Monetary Fund (IMF) said Sri Lanka’s economic recovery has remained resilient despite the impact of the Middle East conflict. IMF Mission Chief for Sri Lanka Evan Papageorgiou said higher energy prices and slower tourism had created challenges but strong revenue collection and steady economic growth had helped mitigate the impact. Continued fiscal and structural reforms will be important to sustain the country’s economic recovery, the IMF said. It urged the government to enhance tax compliance, restructure state-owned enterprises, upgrade public financial management and retain exchange rate flexibility to ensure fiscal and external stability.
("Sri Lanka weathers Middle East shock better than expected: IMF," Daily Mirror, 01 July 2026)
Sri Lanka: Deputy environment minister reaffirms commitment to climate resilience at UNESCAP
On 01 July, Daily Mirror reported that Deputy Minister of Environment Anton Jayakody reaffirmed Sri Lanka’s commitment to environmental sustainability and climate resilience at the Ninth Session of the Committee on Environment and Development at the Ministerial Level, organised by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) in Bangkok. Jayakody commended the UNESCAP Secretariat for its work in promoting sustainable development and implementing the Ministerial Declaration on regional environmental cooperation. He also stressed the importance of collective action and enhanced regional cooperation to address environmental challenges and achieve sustainable development goals.
("Sri Lanka reaffirms commitment to sustainable environment at UNESCAP ministerial session," Daily Mirror, 01 July 2026)
Afghanistan: Taliban summons Pakistan's chargé d'affaires over deadly airstrikes
On 29 June, Afghanistan International reported that the Taliban's Foreign Ministry summoned Pakistan's chargé d'affaires in Kabul. The move came after Pakistan carried out airstrikes overnight. Taliban spokesman Zabihullah Mujahid said at least 36 civilians were killed and 163 injured in the strikes across Paktia, and Kunar provinces. He said the deadliest attack was in Paktia's Chamkani district, where an elderly man and a child were killed in an initial strike. A second strike followed as residents gathered to help survivors, killing 28 more villagers. Pakistan's Information Minister Attaullah Tarar said the operation targeted Tehreek-e-Taliban Pakistan (TTP) and Jamaat-ul-Ahrar militants, killing at least 25 fighters. Former Afghan president Hamid Karzai condemned the strikes and urged Pakistan to end its confrontational policies.
("Taliban Foreign Ministry Summons Pakistan's Chargé d'Affaires," Afghanistan International, 29 June 2026)
Pakistan: Islamabad and Jakarta agree to expand cooperation on vaccine production
On 04 July, The Express Tribune reported that Indonesia assured Pakistan of full cooperation in vaccine production, technical collaboration and capacity building during a meeting in Geneva between Pakistan's Health Minister Mustafa Kamal and his Indonesian counterpart. Both sides agreed to strengthen cooperation to improve access to modern, high-quality healthcare services, with Indonesia reaffirming its role as Pakistan's leading partner in developing local vaccine manufacturing.
("Indonesia to help Pakistan produce vaccines," The Express Tribune, 04 July 2026)
Pakistan: Afghan border closure and Middle East conflict cost USD 3.1 billion in trade
On 04 July, The Express Tribune reported that the National Assembly Standing Committee on Commerce was informed that the closure of the Afghan border had cost Pakistan USD 1.1 billion in export losses, while the Middle East conflict had eroded overseas shipments by an estimated USD two billion, with transit trade and exports declining by USD 1.2 billion during the first nine months of the current fiscal year. Commerce Secretary Jawad Paul told the committee that the food sector recorded a 25 per cent decline in exports, with rice shipments falling sharply due to Indian competition. Pakistani rice, priced at around USD 1,300 per tonne, is losing market share to Indian rice selling at approximately USD 1,100 per tonne, despite being considered superior in quality. Officials noted unsubstantiated complaints that Indian traders were rebranding Pakistani rice before selling it abroad. The committee also approved the Copyright (Amendment) Bill 2026 and was briefed on the proposed Insurance Bill 2026, which would replace the existing 25-year-old insurance law with entirely new legislation drafted by the SECP, opening the sector to greater competition, simplifying licensing, and strengthening consumer protections for policyholders.
("Rice exports hit by Indian price edge," The Express Tribune, 04 July 2026)
Pakistan: GDP growth hits 3.7 per cent in FY26 - highest in four years
On 01 July, The Express Tribune reported that Pakistan's real GDP growth accelerated to 3.7 percent in FY2025-26, the highest in four years, with the economy expanding to USD 452.1 billion, according to the finance ministry's June Economic Update. Growth was broad-based across agriculture, industry, and services, with large-scale manufacturing growing 6.4 percent during July-April, compared with a 1.5 percent contraction the previous year, while agriculture grew 2.9 percent despite flood damage. The fiscal deficit narrowed, with a primary surplus of 3.5 percent of GDP during July-April, supported by a 10.3 percent reduction in current expenditure driven by a 21.9 percent decline in mark-up payments. The current account recorded a surplus of USD 255 million during July-May, with remittances hitting a record USD 4.25 billion in May 2026 and IT exports continuing to grow. Pakistan re-entered international capital markets through a Eurobond issuance after four years and successfully launched Panda Bonds. Average CPI inflation stood at 6.7 percent during July-May FY26, with May year-on-year inflation at 11.7 percent, and June inflation projected to remain in the 11 to 12 percent range.
("GDP growth hits 3.7%, highest in four years," The Express Tribune, 01 July 2026)
Pakistan: PTI announces boycott of “AJK” elections, saying it will stand by people amid social unrest
On 03 July, Dawn reported that Pakistan Tehreek-e-Insaf (PTI) regional president Sardar Abdul Qayyum Niazi announced a boycott of the “Azad Jammu and Kashmir” elections. Niazi cited unrest across the territory, pointing out that food supply throttling from Punjab to “AJK” had caused severe economic distress. He stated that in current circumstances, it was important to find an immediate solution to the problems facing Kashmiris rather than “pushing (them)…towards further political instability.” He warned that the current administration’s threats to “AJK’s” identity blurred the distinction between “liberated and occupied” territories of “Jammu and Kashmir.” He stated the party would not return to the polls as long as grievances were not alleviated and normalcy had not been restored.
(“PTI boycotts AJK elections, citing regional crisis,” Dawn, 03 July 2026)
Afghanistan: Taliban and opposition party members attend Khamenei's funeral
On 03 July, according to Afghanistan International, Taliban representatives and members of Afghanistan's opposition party were seen attending former Supreme Leader Ali Khamenei's funeral. They were invited by Iran. The ceremony was held at the Imam Khomeini Mosalla. More than 100 delegates from different countries attended the funeral. Ahmad Massoud, leader of the National Resistance Front, and Mohammad Mohaqiq, head of the Islamic Unity Party of Afghanistan, alongside Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar and Foreign Minister Amir Khan Muttaqi, were attendees of the funeral. The event marked the first occasion on which both Taliban representatives and anti-Taliban leaders participated in the same formal gathering in Iran as Afghan delegates.
(“Iran Invites Taliban & Afghan Opposition To Khamenei Funeral," Afghanistan International, 03 July 2026)
MIDDLE EAST THIS WEEK
The US-Iran Talks: Discussions conclude in Doha without a breakthrough as the Hormuz dispute persists
On 29 June, Reuters reported that the US said a high-level meeting on Iran would be held in Doha, attended by Steve Witkoff and Jared Kushner. On 30 June, Senior US Envoy Steve Witkoff and Presidential Adviser Jared Kushner are in Doha, as Washington seeks to advance implementation of its recently signed memorandum of understanding (MoU) with Iran. However, both Qatar and Iran have stated that no direct US-Iran negotiations are planned during the visit, pushing back against speculation of renewed talks. Iran's Foreign Ministry spokesman Esmaeil Baghaei stated Tehran has "not planned any meeting with the American side at any level" in the coming days, adding that Iran’s officials would meet counterparts in Qatar to discuss implementation of the MoU, including the release of USD 6 billion of Iran’s funds frozen in Qatar. On 02 July, US and Iran concluded a two-day round of indirect technical talks in Doha, failing to make any definitive breakthrough. Mediated by Qatar and Pakistan’s officials, the discussions focused heavily on clarifying maritime traffic protocols through the strategic Strait of Hormuz and securing the release of unfrozen funds of Iran. While US President Donald Trump publicly suggested progress was being made toward denuclearization, sources familiar with the technical sessions stated that Iran's nuclear program was not discussed. Instead, friction remains centered on the strategic waterway, with Tehran seeking explicit international recognition of its territorial control, including plans to impose shipping tolls by mid-August. Talks are scheduled to resume after the funeral of the late Supreme Leader Ayatollah Ali Khamenei.
(“US, Iran talks conclude in Doha, focused on Strait of Hormuz,” Reuters, 02 July 2026)
Israel and Lebanon: Tel Aviv’s strikes continue despite deal; Hezbollah rejects the deal
On 29 June, Reuters reported that Israel’s military operations in southern Lebanon persist despite a newly signed US-brokered agreement. Israel claimed it killed Hezbollah militants armed with rocket-propelled grenades, destroyed a rocket launcher in the Nabatieh area, and demolished a 200-metre underground tunnel in Majdal Zoun. Moreover, Israel’s officials stated that the US was informed before the tunnel strike, reiterating that Israel’s forces would remain in a designated security zone to eliminate security threats. In contrast, Hezbollah condemned the attacks as violations of the ceasefire, while maintaining that it had adhered to the truce. The US-brokered agreement provides for a phased Israeli withdrawal from parts of southern Lebanon alongside the deployment of Lebanon’s army, while allowing Israel’s troops to remain temporarily in an expanded security zone. Hezbollah rejected the deal as a surrender that compromises Lebanon's sovereignty and vowed to continue armed resistance.
("Hezbollah rejects US-brokered Israel-Lebanon security deal as 'surrender'," Reuters, 27 June 2026; "Israel destroys Hezbollah underground infrastructure in southern Lebanon," Reuters, 29 June 2026; "Israeli military says it killed Hezbollah militants and attacked a launcher in the Nabatieh area," Reuters, 28 June 2026)
Iran: Tehran begins week-long state funeral for Khamenei
On 03 July, Reuters reported that Iran began a week-long state funeral for Supreme Leader Ali Khamenei, with his body lying in state at Tehran’s Imam Khomeini Grand Mosalla. Clerics, military commanders, foreign dignitaries, and thousands of mourners attended under tight security. The funeral procession will continue through Qom, Najaf, and Kerbala before Khamenei’s burial on 09 July in Mashhad. According to The Guardian, Iran is portraying the ceremonies as a display of national unity and resilience following the conflict with the US and Israel. Delegations from Iraq, Armenia, Pakistan, Russia, and China are also expected. However, the symbolism contrasts with mounting economic hardship, sanctions, and weakening domestic support for the clerical establishment.
(“Khamenei lies in state in Tehran as Iran begins week of funeral ceremonies,” Reuters, 03 July 2026; “Iran war live: Ali Khamenei funeral under way as dignitaries arrive,” Al Jazeera, 03 July 2026; “Ali Khamenei’s six-day funeral expected to draw millions in Iran,” The Guardian, 03 July 2026)
AFRICA THIS WEEK
Burkina Faso: Ouagadougou cuts diplomatic ties with Paris
On 27 June, Africa News reported that Burkina Faso's military government severed diplomatic relations with France, accusing Paris of pursuing "neo-colonial ambitions" and supporting subversive networks and terrorists operating in the Sahel. France rejected the allegations as "hostile and baseless" and said it was considering reciprocal measures. The junta stated that the move affected only formal diplomatic relations and did not alter historical or cultural ties between the Burkinabe and French peoples, amid growing anti-French sentiment and expanding Russian and Chinese influence across the region. (“Burkina Faso cuts diplomatic ties with France,” Africa News, 27 June 2026)
DEMOCRATIC REPUBLIC OF CONGO
Former president Kabila strengthened ties with AFC/M23, finds UN report
On 02 July, Africa News reported that a new UN Group of Experts report estimated the AFC/M23 rebel alliance commands around 30,000 fighters and is increasingly positioning itself as a long-term political force in eastern Democratic Republic of the Congo. The report said former president Joseph Kabila has strengthened ties with the movement through meetings in rebel-held areas, with discussions reportedly underway to restructure the alliance and broaden its political appeal. The experts also alleged that between 14,000 and 18,000 Rwandan troops remained deployed in eastern DRC, while accusing all major parties to the conflict of human rights abuses and arms embargo violations. (“New UN report links Joseph Kabila more closely to AFC/M23,” Africa News, 02 July 2026)
DR Congo begins trial of experimental Ebola treatments amid expanding outbreak
On 03 July, Africa News reported that the World Health Organization (WHO) launched a clinical trial in the Democratic Republic of the Congo to evaluate two potential treatments for the Bundibugyo strain of Ebola, enrolling the first patient to test the monoclonal antibody MBP134 and the antiviral drug remdesivir, both individually and in combination. The WHO said the outbreak has reached 1,406 confirmed cases and 438 deaths, while warning that the response continues to be affected by insecurity after an Ebola treatment centre in Ituri province was attacked and set on fire, forcing patients to flee. (“Trial of Ebola treatment gets underway in Ituri,” Africa News, 03 July 2026)
SOUTH AFRICA
Nationwide anti-immigration protests grip South Africa
On 01 July, Africa News reported that thousands of people marched across South Africa demanding the departure of undocumented foreign nationals, culminating a weeks-long anti-immigration campaign that has prompted thousands to leave the country and left at least four people dead. Police maintained a heavy security presence as demonstrations took place in major cities, with isolated incidents of looting and clashes reported. Authorities said more than 25,000 people had been processed for departure in recent weeks, while several African governments organised voluntary repatriation for their citizens amid rising fears of xenophobic violence.
(“Thousands march to demand illegal migrants leave South Africa,” Africa News, 01 July 2026)
MALI
Mali: Human Rights Watch accuses warring parties in Mali of serious abuses
On 29 June, Africa News reported that Human Rights Watch (HRW) accused Islamist fighters, Malian forces and Russian-backed Africa Corps mercenaries of committing serious abuses against civilians since fighting intensified in April. The report alleged reprisals against Fulani communities, civilian deaths from airstrikes, and abuses by jihadist group JNIM, including a blockade of Bamako, the burning of civilian vehicles and public executions. HRW said longstanding impunity was fuelling the violence and urged the United Nations and African Union to support independent investigations.
(“Warring parties in Mali committing serious rights abuses, HRW report finds,” Africa News, 29 June 2026)
NIGERIA
37 students missing after jihadist attack on school in northeast Nigeria
On 01 July, Africa News reported that 37 students were missing after suspected Islamic State West Africa Province (ISWAP) militants raided a secondary school in Lassa, northeastern Nigeria, where pupils were sitting for their final examinations. According to a list shared by a local government official and confirmed by an intelligence source, the students remain unaccounted for following the attack, which killed a soldier, a teacher and another person. School abductions remain a persistent tactic used by militant groups in Nigeria, with analysts warning of a resurgence in jihadist attacks since 2025.
(“At least 37 students missing after school kidnapping in Northeastern Nigeria,” Africa News, 01 July 2026)
WFP warns conflict and aid cuts are worsening hunger crisis in northern Nigeria
On 03 July, Africa News reported that the World Food Programme (WFP) warned that escalating conflict and shrinking humanitarian funding have pushed northern Nigeria into its worst food crisis in nearly a decade, with more than 17 million people facing crisis, emergency or catastrophic levels of hunger across nine states. The agency said worsening insecurity has displaced farming communities, restricted humanitarian access and disrupted aid deliveries, while funding shortfalls have forced the suspension of food assistance, increasing the risk of exploitation and recruitment into armed groups.
(“UN says hunger in conflict-hit northern Nigeria is reaching crisis levels,” Africa News, 03 July 2026)
Nigeria expands military cooperation with Benin and Niger
On 03 July, Africa News reported that Nigeria is expanding military cooperation with Benin and Niger to prevent militant groups from the Sahel entering its northwest, including plans to establish a new tri-border military sector. Defence Minister Christopher Musa said the initiative is under development and announced plans to visit Burkina Faso, Mali and Niger to strengthen military cooperation, as authorities seek to counter the growing presence of Al Qaeda- and Islamic State-affliated groups infiltrating from neighbouring countries. (“Nigeria looks to boost security cooperation with Benin and Niger,” Africa News, 03 July)
SUDAN
Amnesty accuses Sudan's RSF of crimes against humanity in El-Fasher
On 01 July, Africa News reported that Amnesty International accused Sudan's Rapid Support Forces of committing crimes against humanity and ethnic cleansing during its campaign to seize El-Fasher between 2024 and 2025. Based on interviews with 247 victims and witnesses, the report alleged systematic attacks on Zaghawa communities, including killings, torture, rape, child abductions and forced recruitment, and said the destruction of civilian areas suggested an intent to render them uninhabitable. Amnesty called for an immediate ceasefire and an international protection force, while noting its investigation remains ongoing. (“Sudan's RSF committed ethnic cleansing, Amnesty report alleges,” Africa News, 01 July 2026)
UN Human Rights Council holds urgent debate on atrocity risks in Sudan's el-Obeid
On 01 July, Africa News reported that the United Nations Human Rights Council convened an urgent session on the deteriorating situation in el-Obeid after Germany, Ireland, the Netherlands, Norway and the United Kingdom warned that around 500,000 civilians faced the risk of large-scale atrocities amid escalating fighting. The countries cited increasing drone strikes, siege-like conditions and collapsing access to essential services, and said they would table a draft resolution following the debate. Separately, the Sudan Doctors Network alleged that the Rapid Support Forces had detained 20 doctors since capturing El-Fasher in October 2025, with their whereabouts remaining unknown. (“UN Human Rights Council to hold urgent meeting on Sudan crisis,” Africa News, 01 July 2026)
At least 129 people dead in cholera outbreak in West Korodofan
On 03 July, Africa News reported that the World Health Organization (WHO) said a cholera outbreak in West Kordofan has killed at least 120 people and infected more than 1,100 others since May, days after Sudan declared an outbreak in the state. The WHO warned that conflict between the Sudanese army and the Rapid Support Forces (RSF), widespread displacement, limited healthcare access and funding shortages are hindering the response, while the approaching rainy season is expected to accelerate the spread of the disease. (“WHO says 120 dead in Sudan's latest cholera outbreak,” Africa News, 03 July 2026)
EUROPE THIS WEEK
The War in Ukraine: Russia claims capture of Kostiantynivka; Kyiv denies claims; Russia launches massive drone and missile attacks on Kyiv
On 02 July, Reuters reported that Russia launched drone and missile attacks on Kyiv, killing 18 people. President Volodymyr Zelenskyy said that “Air defence supplies for Ukraine are an absolute and critical priority,” as he returned from Ireland. Ukraine’s Air Force Spokesperson, said that Russia launched 74 missiles and 496 drones, further stating that the interception rate for them was low. Russia’s Defence Ministry said that Moscow had launched a "massive attack" and that this was in response to Ukraine’s drone strikes over the last week. Moreover, on 04 July, Reuters reported on Russia's armed forces stating that they captured Kostiantynivka in eastern Ukraine. The Chief of the General Staff of Russia, General Valery Gerasimov, called the city an important defensive hub. President Putin stated that this was a strategic victory and added that security zones in Russia would be expanded due to the increase in oil infrastructure. However, President Zelenskyy, on X, said that the city was under the control of Ukraine and this claim was "another lie of Russians." Additionally, an oil terminal in St Petersburg, Vysotsk port in the Baltic Sea and Leningrad were attacked by Ukraine’s drones, with President Zelenskyy adding that Ukraine’s forces also struck Kronstadt, a naval base near St Petersburg.
("Russian defence ministry says its forces captured Kostiantynivka in eastern Ukraine," Reuters, 04 July 2026; "Zelenskyy denies Russian capture of key eastern city Kostiantynivka," Reuters, 04 July 2026; "St Petersburg region port, oil terminal hit in major Ukrainian drone attack," Reuters, 04 July 2026)
France: Record-breaking heatwave leaves thousands dead, intensifing wildfire risk
On 03 July, the BBC reported that Europe is suffering from a record-breaking June heatwave that resulted in thousands of deaths, triggering severe wildfires. There were 2,025 extra deaths in France during the final week of June when temperature averages in the whole country surged to as high as 41 degree Celsius in Paris in later June. Deaths increased by 29 per cent across the country and very sharply to 62 per cent in the Paris region alone. The officials warned the initial figures are likely underestimates. Furthermore, driven by climate change, the sweltering conditions have sparked nearly 7,000 wildfires in France, burning 8,700 hectares and forcing thousands of evacuations. Forecasters warn of further extreme temperatures exceeding 40 degrees Celsius over the weekend, prompting Portugal to declare a state of alert and Spain to issue orange warnings.
("France records 2,025 excess deaths at peak of heatwave as Europe braces for more extreme weather," BBC, 03 July 2026)
NATO: Ankara summit to focus on easing alliance strains and boosting defence spending
On 03 July, Reuters reported that NATO leaders are set to meet in Ankara on 07 and 08 July for the annual leaders' summit. Reuters reported that European allies hope to show they are spending more on defence to ease tensions with the US. NATO Secretary-General Mark Rutte said the summit would focus on putting higher spending to use, with arms deals worth tens of billions of dollars expected to be signed. European members and Canada spent USD 90 billion more on defence in 2025 than the year before, bringing the total to over USD 570 billion. Leaders are also expected to pledge their support for Ukraine. Ukraine's President Volodymyr Zelenskyy will attend a dinner hosted by Turkey's President Tayyip Erdogan.
("NATO leaders to gather in Ankara, aiming to smooth over tensions with Trump," Reuters, 03 July 2026)
AMERICAS THIS WEEK
Mercosur starts trade talks with Japan and plans talks with China
On 30 June, Reuters reported that Mercosur had started talks with Japan on a new economic partnership. Mercosur is a trade group made up of Argentina, Brazil, Paraguay and Uruguay. The new agreement could create a free trade area with about 400 million people. The combined economy would be worth about USD 7 trillion. Mercosur wants to increase trade with more countries after its agreement with the European Union. The group also plans to begin trade talks with China. Leaders said these partnerships will create more business opportunities and increase exports. They also hope to reduce the effects of global trade tensions. Experts believe stronger trade ties with Japan and China will help South America's economy grow. The talks show Mercosur's goal of building stronger economic relations with major countries.
("Mercosur launches economic partnership talks with Japan and eyes China," Reuters, 30 June 2026)
Peru: Keiko Fujimori officially declared election winner
On 3 July, Reuters reported that Keiko Fujimori was officially declared the winner of Peru's presidential election. She received 50.135 per cent of the votes, while her opponent Roberto Sanchez received 49.865 per cent. The difference between them was about 50,000 votes out of 18 million votes cast. The final result was announced after weeks of ballot checking, protests and claims of election fraud. Fujimori thanked the people of Peru and promised to work for the country's development. Roberto Sanchez said he does not accept the result and still questions the election process. Experts believe Fujimori's biggest challenge will be bringing the country together after the closely contested election. They also said her government will need to improve political stability and support economic growth.
USMCA: Trade agreement enters uncertain phase
On 01 July, Reuters reported that the United States, Canada and Mexico reviewed the USMCA trade agreement. The United States decided not to continue the agreement in its present form. This began a 10-year period for the three countries to discuss changes before the agreement could end. US officials said they want stronger rules to increase manufacturing in the United States. They also want stricter rules to stop goods from countries like China from getting trade benefits through the agreement. Canada and Mexico said they are ready to continue talks and solve the remaining issues.
Mexico: Government welcomes Chinese investment despite US trade talks
On 1 July, CGTN reported that Mexico still wants investment from China even while it is holding trade talks with the United States. Mexican officials said the country is open to investment from all countries that follow its laws. They said many Chinese companies are interested in investing in Mexico. At the same time Mexico wants to keep strong trade relations with the United States. The government believes it can work with both countries at the same time. Experts said Chinese investment has created jobs and supported Mexico's manufacturing sector. However some US officials are worried about China's growing economic influence in Mexico. Mexico said it will continue to protect its national interests while increasing trade and investment with different countries. This shows Mexico's effort to maintain good economic relations with both China and the United States.
("Mexico still wants Chinese capital amid trade negotiations with the US," CGTN, 01 July 2026)
Panama: Return to Paris MoU White List reflects stronger maritime governance
On 03 July, SMI Digital reported that Panama returned to the Paris MoU White List. This reflects the improvements in the country's maritime governance and compliance with international shipping standards. The return is result of a thorough strategy implemented by the Panama Maritime Authority to strengthen port state control, modernise regulatory oversight and enhance inspections. It is also aimed at improving compliance among Panama-flagged ships. Authorities stated that the return to the White List shows Panama's commitment to adhere to international regulations. The government also noted that the recognition is expected to enhance Panama's shipping registry reputation. This will further strengthen confidence among international maritime stakeholders.
("Panama returns to Paris MoU White List through stronger maritime governance and a comprehensive compliance strategy," SMI Digital, 03 July 2026)
About the authors
Aarav Bhaskar is a high school student from the American Embassy School, New Delhi.
Acsah H is a postgraduate student at the Department of Geopolitics and International Relations, Manipal Institute of Social Sciences, Humanities and Arts, MAHE, Manipal, Udupi.
Aishal Yousuf is a postgraduate student at the Department of International Studies, Stella Maris College, Chennai.
Anshika Thakur is an undergraduate student from the Department of History, Economics, and Political Science, Mount Carmel College Autonomous, Bengaluru
Avaneesh S is a postgraduate student at the Department of History, School of Social Sciences, Pondicherry University.
Dhivya K M is a postgraduate student from the Department of Financial Economics, Madras School of Economics, Chennai.
Madhura Meenakshi Tanikella is an undergraduate student from the Department of Political Science, School of Liberal Arts, Alliance University, Bengaluru.
Radhika M Agarwal is a postgraduate student in the Department of Politics and International Relations at Pandit Deendayal Energy University, Gandhinagar.
Sreemaya Nair is a Postgraduate student from the University of Madras, Chennai.
Yesasvi Koganti is an undergraduate student at the Department of Political Science, Madras Christian College, Chennai.
Akshath Kaimal, Brighty Ann Sarah, Lekshmi MK, and Preetha R are Research Assistants at the National Institute of Advanced Studies, Bengaluru.
