Global Economy News
LAST UPDATE: July 3, 2025
Top Chinese Official Softens Tone on US, Says War ‘Unimaginable’
A senior Chinese diplomat stated that a direct military conflict with the US is “unimaginable,” while urging the US to respect China’s sovereignty and the One-China principle, signaling a desire to calm escalating bilateral rhetoric.
Insight
The message offers a pivot from confrontation to cautious diplomacy. Though firm on core issues, Beijing is signaling to Washington that while disagreements persist, full-scale military escalation is off the table—potentially easing short-term tensions.
China Says It Views EU as a Partner, Not a Rival
China’s foreign ministry emphasized the EU is a partner rather than a competitor or rival, supporting open trade and mutual cooperation in energy and technology ahead of the next China–EU summit.
Insight
Beijing is positioning Europe as a strategic ally to help counterbalance U.S. pressure—seeking to strengthen ties even as structural challenges like trade imbalances and security concerns persist. This signals China’s intent to diversify its international partnerships.
China Leads a BRICS Nations Shift Into Solar Power, Report Shows
A Bloomberg report revealed that BRICS nations now generate over half of global solar electricity, with China accounting for 39%, India 6.3%, and Brazil 3.5% of total global solar generation gains.
Insight
The data highlight China’s dominance in driving global decarbonization within emerging markets. As a clean-energy powerhouse, China’s leadership gives BRICS increased leverage in climate and energy policy discussions.
India and Ghana deepen security, economic ties as Modi visits
On July 2, PM Modi and Ghana’s President Mahama elevated their relationship, signing MOUs on defense, food security, pharmaceuticals, mining, and digital infrastructure—including critical‑mineral partnerships.
Insight
India is expanding its strategic footprint in West Africa, competing with China for influence and securing resources. This “Global South” diplomacy enhances its geopolitical and economic position.
Saudi Arabia, Indonesia sign several deals worth around $27 billion, state news agency says
The two nations signed private-sector agreements and MOUs worth about $27 billion in clean energy, petrochemicals, aviation fuel, and minerals, plus cooperation on oil supply chains and sustainability.
Insight
This deepens economic alignment under Saudi Vision 2030 and Indonesia’s Golden Indonesia 2045 plan. The agreements reflect a strategic pivot to green energy, petrochemical integration, and stronger energy security.
WHO pushes countries to raise prices on sugary drinks, alcohol and tobacco by 50%
Reuters
The WHO launched the “3 by 35” initiative at the UN Finance for Development conference, urging countries to raise taxes on sugary drinks, alcohol, and tobacco by 50% over the next decade—potentially raising $1 trillion by 2035.
Insight
By linking disease prevention to fiscal revenue, the WHO is advocating a major shift in public health policy. While politically sensitive, this bold move targets chronic illness while generating funds amid declining development aid.
