China’s Handing Out Cash Now

Hi Global Recap readers,

Directly giving subsidies to citizens isn’t new for Western countries like the US or Australia.

In contrast, it’s quite rare in China, where the focus has usually been on stimulating the economy through financial support for manufacturers and infrastructure projects that create jobs.

However: Just when we thought China had finished announcing its plans to rescue its economy from its deflationary spiral, it rolled out another bold and rare initiative.

How do you stop deflation? Create inflation.👇

🇨🇳 CHINA
China to Give Cash Handouts

China is making another rare move by giving one-off cash handouts to its poorest citizens before October 1st. This announcement comes right after a series of economic stimulus measures were announced.

Direct Aid Announcement

• The Ministry of Finance and Ministry of Civil Affairs will issue living subsidies to disadvantaged groups, including the very poor and orphans.

• Local authorities need to ensure the funds reach recipients by National Day on October 1, which marks the anniversary of Mao Zedong’s declaration of the People’s Republic of China on October 1, 1949.

• The central government also intends to offer social security benefits to college graduates who are still unemployed two years after finishing school.

🤔 Thoughts: Is this initiative aimed at boosting public support for the CCP ahead of the national holiday? It certainly seems like that’s part of it. After all, the country is actually showing early signs of a larger deflationary cycle.

Budget and Recipients

• China has budgeted 154.7 billion yuan ($22 billion) for financial assistance.

• As of June, 4.74 million people in China live in extreme poverty.

🇨🇳 CHINA
Rare ICBM Tests

China recently conducted a rare test launch of an intercontinental ballistic missile (ICBM) into the Pacific Ocean, raising international concerns about its nuclear capabilities.

🤔 Thoughts: This might be an attempt to address recent concerns about the army’s operational readiness after the major PLA Rocket Force scandal, where soldiers reportedly filled rockets with water instead of fuel.

Successful Test Launch

• The missile, carrying a dummy warhead, was launched at 8:44 am on Wednesday Beijing time.

• The Chinese defense ministry stated it was part of their annual training plan.

• The US was notified in advance to reduce risks of misperception.

Military Modernization

The PLA Rocket Force is modernizing its nuclear arsenal amid US missile defense improvements.

• China is developing a triad of land, sea, and air-based nuclear weapons.

• The PLA is catching up with major nuclear powers, despite its “no first use” policy.

Increased Military Activity

Taiwan has detected increased Chinese military activities, including missile firing and drills.

• Taiwan’s defense ministry reported 23 Chinese military aircraft operating around the island.

• The ministry also noted “intensive” Chinese missile firing and other drills.

🇮🇱 ISRAEL
Possible Ground Incursion

Israel is ramping up its military actions in Lebanon, targeting Hezbollah’s infrastructure and preparing for a possible ground incursion, according to Israel’s military chief.

Airstrikes Intensify

• Strikes are intended to pave the way for a potential ground incursion.

• The goal is to allow displaced Israelis to return home safely.

• Israeli jets have been active all day, targeting Hezbollah positions.

Ground Incursion Plans

• Troops are being readied to enter villages used by Hezbollah as military outposts.

• The incursion aims to show Hezbollah the strength of Israel’s military.

• The objective is to decisively destroy Hezbollah’s infrastructure.

Hezbollah’s Response

Hezbollah has retaliated with missile attacks on Israel.

• A missile aimed at Mossad headquarters near Tel Aviv was intercepted.

• Hezbollah has fired hundreds of missiles into Israel over the past week.

• Israel’s escalations have put Hezbollah on the defensive.

Leadership Strikes

Israel has targeted key Hezbollah leaders in recent airstrikes.

• Ibrahim Aqil, leader of Hezbollah’s elite Radwan Force, was killed.

• Ibrahim Qubaisi, a senior official commanding missile units, was also killed.

🇷🇺 RUSSIA
Proposed Child-Free Ban

Russia’s proposed legislation to prosecute those promoting a “child-free” lifestyle has sparked outrage online. This move is seen as part of a Kremlin plan to enforce traditional values amid a demographic crisis.

Demographic Crisis

Russia faces a significant demographic crisis, with birth rates at their lowest in 25 years.

• President Putin has implemented policies to encourage childbirth.

• The war in Ukraine has exacerbated the population decline due to casualties and draft evasion.

Proposed Legislation

The State Duma is considering a bill to ban “child-free” propaganda.

• The bill aims to preserve Russian spiritual and moral values.

• Fines range from $4,300 for individuals to $53,763 for companies.

Public Reaction

The proposal has been met with significant backlash on social media.

• Critics compare it to penalties for promoting “non-traditional” sexual relations, A.K.A. LGBTQ relations.

• Opposition figures and social media users have voiced their concerns, likening it to dystopian scenarios.

🇦🇫 AFGHANISTAN
Taliban Taken to Court

The Taliban are facing international legal action over gender discrimination, a historic first for the International Court of Justice (ICJ).

Why? Remember when we reported on the new Taliban law banning women from speaking in public?

However: Just like the Mongolian government didn’t arrest Putin despite an outstanding ICJ arrest warrant, the ruling lacks “hard enforceability.”

Groundbreaking Move

So, who, exactly, is taking the Taliban to court? Canada, Australia, Germany, and the Netherlands.

• This is the first time a country is using the ICJ for gender discrimination.

• The case is based on the Convention on the Elimination of All Forms of Discrimination Against Women.

• Afghanistan ratified this convention in 2003.

Six-Month Response Period

Afghanistan has six months to respond before the ICJ holds a hearing.

• The ICJ may propose provisional measures if Afghanistan does not respond.

• An ICJ ruling could deter other states from normalizing relations with the Taliban.

Support from Female Leaders

Three female foreign ministers and the Dutch foreign minister back the initiative.

• Penny Wong (Australia), Annalena Baerbock (Germany), and Mélanie Joly (Canada) are involved.

• The Dutch foreign minister, Caspar Veldkamp, also supports the move.

Public Outcry

Prominent figures and activists are speaking out against the Taliban’s policies.

• Meryl Streep highlighted the severe restrictions on Afghan women.

• Afghan women are protesting online by singing, defying the Taliban’s decrees.