This isn’t good China...

Hi Global Recap readers,

Well, this isn’t a good look for China.

For the past two days, China has announced economic measures that are on par with those taken during the pandemic to rescue its ailing economy.

How did Chinese stocks react?

Take Alibaba’s stock price. It went parabolic.

But as for China’s image, it’s not as great, especially with this latest news.👇

🇨🇳 CHINA
Submarine Sinks in Wuhan

China’s newest nuclear-powered attack submarine sank earlier this year, causing a significant setback for the country’s naval ambitions. The incident, which occurred near Wuhan, was kept under wraps by Chinese authorities.

Nothing seems to be going the way of China lately…

The Incident

A new nuclear-powered submarine sank at a shipyard near Wuhan in late May or early June.

• The submarine was undergoing final equipping before going to sea.

• Large floating cranes were used to salvage the sub from the riverbed in early June.

• The vessel is the first of a new class of Chinese nuclear-powered subs.

Implications

The sinking has considerably set back China’s plans to expand its nuclear submarine fleet and has fueled criticism of widespread corruption within the Chinese military.

• The sub was built by China State Shipbuilding Corp.

• It will take months to repair and put the submarine back to sea.

US Perspective

• The Pentagon considers China its principal long-term “pacing challenge.”

• The incident highlights issues within China’s defense industry, including corruption.

• There are concerns about the potential for nuclear leaks and casualties.

Historical Context

The US has faced similar setbacks in the past.

• In 1969, the USS Guitarro sank at a shipyard in California due to construction errors.

• It took 32 months to commission the submarine after the incident.

🇮🇱 ISRAEL
Israel Rejects Ceasefire

Well, this is just embarrassing for the US.

On Thursday, the US, France, and their allies called for a 21-day ceasefire along the Israel-Lebanon border, amid rumors that an agreement had already been reached prior to the announcement.

So, what was Israel’s response?

This could suggest two possibilities:

• The US and its allies coordinated the joint statement with Israel’s response to save face, or…

• The US and its allies lack influence over the situation.

However, when you look at the following news, it appears that the US is very much in control of the situation—though perhaps not in a way that many would prefer… 👇

🇺🇦 UKRAINE
Biden’s $8 Billion Aid

Do you recall Putin saying he would consider using nuclear weapons if Russia faced “massive aerospace attacks”? Well, the US has just helped Ukraine make that a reality.

Major Commitment

President Biden has announced a significant $8 billion military aid package for Ukraine, aiming to bolster its defense against Russian forces. This move comes as Ukrainian President Zelenskiy visits Capitol Hill amid Republican criticism.

• The aid includes the first shipment of the Joint Standoff Weapon, a precision-guided glide bomb with a range of up to 81 miles.

• This weapon allows Ukraine to strike Russian forces from “safer distances.”

• Biden emphasized the importance of supporting Ukraine to help it win the war.

Financial Breakdown

The bulk of the aid is allocated before the fiscal year’s end.

• $5.5 billion is to be allocated before the end of the US fiscal year.

• Another $2.4 billion is under the Ukraine Security Assistance Initiative, allowing the purchase of weapons from companies.

• The aid package includes additional air defense, unmanned aerial systems, and air-to-ground munitions.

Training and Equipment

Biden ordered the Pentagon to expand training for Ukrainian F-16 pilots.

• The Defense Department will refurbish and provide an additional Patriot air defense battery and more Patriot missiles.

• Training for an additional 18 Ukrainian F-16 pilots will be supported next year.

Tactical?

• Some argue that the US is doing this intentionally to keep Russia focused on Ukraine and the rest of Europe, preventing it from intervening in the Middle East conflict.

• If that’s the case, it’s quite effective in achieving its goal. However, it’s a very risky strategy.

🇯🇵 JAPAN
Naval Maneuvers in Taiwan Strait

Japan’s Maritime Self-Defense Force (JMSDF) destroyer JS Sazanami sailed through the Taiwan Strait for the first time since World War II, accompanied by Australian and New Zealand naval vessels.

This move, directed by Japanese Prime Minister Fumio Kishida, has raised eyebrows in China.

Joint Naval Transit

Japan, Australia, and New Zealand conducted a joint naval transit through the Taiwan Strait.

• The transit took over 10 hours and was part of a routine movement in the Indo-Pacific.

• The Japanese destroyer was joined by an Australian destroyer and a New Zealand fleet oiler.

• This maneuver was not directed at or requested by any particular country.

Chinese Response

China expressed concern over Japan’s intentions behind the transit.

• Chinese officials urged Japan to act “prudently” on the Taiwan issue.

• China handled the transit according to its laws and regulations.

With Israel’s invasion of Lebanon imminent, Russia threatening to use nukes, China testing ICBMs, and Japan sailing through the Taiwan Strait for the first time since WWII, are we seeing the prelude to a broader war?

A world war?

🇺🇸 UNITED STATES
Trump Threatens Iran

This clip was uploaded to the Ayatollah’s website, issuing a threat to assassinate Trump.

You would think the US intelligence service would fire back and condemn Iran, right? Nope.

Instead, while US intelligence was reportedly briefing President Trump on threats from Iran to assassinate him, he responded by saying that if he were still in office, he would threaten to blow Iran to “smithereens.”