China warns Philippines against ‘playing with fire’ on Taiwan

Reuters,

China accused the Philippines of “playing with fire” after President Ferdinand Marcos Jr., during a state visit to India, said Manila could be drawn into any U.S.–China conflict over Taiwan due to geography and the presence of Filipino nationals there. Beijing urged Manila to respect the one-China principle and avoid interfering in “internal affairs,” warning that such remarks threaten regional stability. Marcos framed his comments around humanitarian obligations to protect Filipinos, while tensions in the South China Sea continue to simmer amid repeated maritime run-ins. The United States has reiterated its defense commitments to Manila under their mutual defense treaty, adding another layer to a fraught security environment across the first island chain.

Israel plans to retake Gaza City, raising risks to hostages and worsening humanitarian crisis

AP,

Israel unveiled plans to retake Gaza City in a new phase of its war with Hamas, nearly two years into the conflict. Prime Minister Benjamin Netanyahu’s proposal, which Israeli officials say could also be leverage to force a ceasefire deal, sparked alarm over the fate of roughly 20 remaining hostages and the enclave’s already dire conditions. Hamas vowed intensified resistance. Governments including the UK and Germany urged restraint, while Egypt and Qatar worked on a framework involving a hostage release, Israeli withdrawal, and an Arab-led interim administration. Any ground push risks further mass displacement and disruption of food distribution amid widespread hunger across northern Gaza.

Taiwan’s US trade surplus hits full-year record in seven months on AI demand

Bloomberg,

Taiwan’s trade surplus with the United States topped its previous annual record in just seven months, propelled by an AI-driven surge in tech exports. July shipments to the U.S. jumped nearly 63% year-on-year to $18.6 billion, taking the January–July surplus to almost $70 billion, according to the Ministry of Finance. The performance underscores how advanced chips, servers and related components tied to AI build-outs are reshaping trade flows. The gains come as new U.S. tariff measures are set to begin later in August, creating uncertainty for supply chains centered on Taiwanese hardware. Analysts say any tariff shock could complicate pricing and delivery for hyperscalers and OEMs through year-end.

India rejects reports of a pause in talks to buy US arms

The Times of India,

India’s Defence Ministry dismissed as “false and fabricated” media claims that New Delhi had paused negotiations for major U.S. weapons purchases. Officials said talks on platforms and co-production remain on track, a message aimed at calming speculation of friction in defense ties as Washington rolls out steep tariff hikes on Indian goods. The clarification comes amid a broader test for India–U.S. relations: managing trade tensions while advancing technology and defense cooperation under multiple bilateral initiatives. Any stall would carry knock-on effects for Indo-Pacific deterrence planning and industrial partnerships, but New Delhi’s statement signals continuity in procurement and joint production pipelines.

UK’s Starmer says Israel’s Gaza City move is ‘wrong’

Reuters,

UK Prime Minister Keir Starmer publicly criticized Israel’s decision to escalate by taking control of Gaza City, calling the move “wrong” and unlikely to help end the conflict or free hostages. Starmer urged de-escalation and renewed diplomatic efforts, aligning with growing international unease over humanitarian conditions and potential regional spillover. The comments add pressure as Israel’s war cabinet weighs military goals against international censure and legal risk. London has faced domestic debate over arms export controls to Israel; Starmer’s statement underscores the political and legal scrutiny European capitals face as the war grinds on and civilian casualties mount.