Monday, September 1, 2025

Xi’s world order

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Chinese leader Xi Jinping and Russian President Vladimir Putin have long showcased their bromance on the world stage.

Now, they're embracing a powerful new friend: Indian Prime Minister Narendra Modi.

Pictures of the three leaders laughing during an impromptu huddle today on the sidelines of the Shanghai Cooperation Organisation summit in the Chinese city of Tianjin signaled the beginning of a new chapter in regional diplomacy.

Putin, Modi and Xi at the SCO summit. Source: Kyodo News/Getty Images

"Exchanging perspectives with President Putin and President Xi during the SCO Summit," Modi posted on his official X account.

For Xi, the optics could hardly have been better. As US President Donald Trump's tariffs and foreign-policy swings upend America's global standing, China's leader is seeking to elevate Beijing's position on the world stage.

Making up with Modi is part of that push.

It's just two years ago that Xi broke decades of precedent to skip a Group of 20 summit in New Delhi, dealing a public snub to Modi as tensions simmered between the world's two most populous nations.

Now, with the US targeting Indian and Chinese exports with tariffs past 50%, the neighbors are putting aside their border dispute and eyeing ways to do more business.

And while Putin and Modi have long been partners — Russia is India's primary defense supplier, after all — the three men together forging such a united front stands out.

That show of common purpose calls into question how effective Trump's campaign to prise India away from Russian oil, and convince China to buy more from the US, is really going to be.

The answer may come only when Trump arrives in Beijing for his own taste of Xi's diplomatic charm — the date for which still hasn't been set.

For the time being, the emergence of a new Xi-Putin-Modi alliance is a worrying development for defenders of the US-led global order. — Jenni Marsh

Xi displayed on a screen at the SCO summit media center. Photographer: Qilai Shen/Bloomberg

Global Must Reads

The death of a 21-year-old motorcycle delivery driver, Affan Kurniawan, who was run over by an armored police vehicle in Jakarta, turned what appeared to be manageable protests over rising living costs into the most serious test yet for President Prabowo Subianto. While the Indonesian capital appeared calmer today, days of demonstrations left at least four people dead and hundreds injured, while buildings throughout the country were set ablaze.

A police headquarters set on fire and looted in Surabaya, Indonesia, yesterday. Photographer: Juni Kriswanto/AFP/Getty Images

The prime minister of Yemen's Houthi government, Ahmed Ghalib Al-Rahwi, was killed in Israeli strikes on Thursday, along with a number of ministers, the group's presidency said at the weekend. Israel meanwhile claimed it killed a key Hamas spokesman, Abu Obeida, in a Gaza City airstrike. The Trump administration said it will deny US visas to Palestinian Authority President Mahmoud Abbas and 80 other officials, likely making it impossible for them to attend this month's UN General Assembly.

French Prime Minister François Bayrou struck a combative tone in an effort to gain support for a confidence vote next Monday he called to break a budget deadlock, while acknowledging that talks with political parties may fail to save his government. Leaders of the far-right National Rally and Socialist party said they only planned to participate in the meetings called by Bayrou out of courtesy.

German Chancellor Friedrich Merz said he hasn't given up hope that a ceasefire can be secured in Ukraine, but he's preparing for the possibility "that this war could go on for a long time." President Volodymyr Zelenskiy said Saturday that he'd spoken with Modi about Russia's latest strikes on Ukraine, and that the Indian leader had agreed on the need for a ceasefire.

Zelenskiy during a news conference in Kyiv on Friday. Photographer: Andrew Kravchenko/Bloomberg

Trump is following through with a promise to rain retribution on political opponents and the FBI raid on the home of his former national security adviser-turned-critic John Bolton smacked of an escalation. Meanwhile, a federal appeals court ruling that the president's tariffs were issued illegally extended the chaos in global trade, while a separate case blocked a policy that for months has allowed federal agents to remove undocumented immigrants without due process.

A Thai pro-democracy party whose rise to power has been thwarted by the country's conservative establishment is in pole position to anoint its next prime minister, following the court ousting of Prime Minister Paetongtarn Shinawatra. The Thai royal household meanwhile said the health of Princess Bajrakitiyabha Narendira Debyavati, who has been unconscious for almost three years, has stabilized.

Well-wishers bow in front of an image of the princess at Chulalongkorn Hospital in Bangkok after her collapse due to a heart condition in 2022. Photographer: Lillian Suwanrumpha/AFP/Getty Images

The Trump administration will make it harder for Samsung and SK Hynix to ship critical equipment to their chipmaking operations in China, dealing a potential blow to the companies' production in the world's largest semiconductor market.

Norway picked the UK as the supplier of frigates for its navy in a deal the defense ministry in London said was worth £10 billion ($13.5 billion), the biggest ever investment in the Nordic country's defense.

Sudan's army-backed government accused its paramilitary foes of a fatal attack on oil facilities crucial to the export of neighboring South Sudan's crude, the latest escalation in a two-year civil war.

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Chart of the Day

Uncertainty around a looming overhaul of the Dutch pension system to help cope with an aging population and changing labor market is triggering market volatility. The Netherlands accounts for 7% of the euro-area economy, yet its pension system is the European Union's biggest, with European government bond holdings totaling almost €300 billion. The reform plans are already pushing up yields on longer-dated bonds, with the outlook further complicated by a political crisis after the collapse this summer of the Dutch government.

And Finally

A sudden change has happened in Britain in recent weeks, visible on lamp-posts and bridges and painted on pedestrian crossings: A surge in displays of national flags, typically only seen at moments of sporting triumph or royal celebration. The flag-flying is a sign of growing discontent over how Prime Minister Keir Starmer's Labour government is handling asylum and immigration. Voter concern around those issues is boosting Nigel Farage's Reform UK party in opinion polls, while those on the political left warn of a creeping racism.

The flags of St George and Union Jacks hang in Ellesmere Port, England, on Aug. 28. Photographer: Christopher Furlong/Getty Images

Thanks to the 24 people who answered Friday's tricky quiz question, and congratulations to Mond McKenzie, who was first to correctly identify Moldova as the country visited by the leaders of Germany, France and Poland last week in a show of support. We'd also like to apologize for an error the previous week, when in the morning rush we mistakenly gave the quiz answer as the US, when it should have been Trump (the winner is unaffected, however).

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