Flagship

China falls into deflation

China’s economy tipped into deflation, a troubling sign of its struggles after lifting pandemic-era restrictions. Instances of deflation risk triggering a vicious cycle in which consumers delay purchases as prices fall, hampering economic growth, driving further price cuts. Chinese policymakers are hopeful the latest data is a temporary blip — officials have pledged to bolster economic growth, and are under pressure to deploy monetary and fiscal stimulus — but some analysts fear a “Japanification” of China’s economy with prices and growth flatlining. Other parallels with Japan, which suffered several so-called lost decades, are striking: China’s population is also declining, savings are piling up in banks, and young people are worried about their prospects as youth unemployment skyrockets.

TSMC announces German investment

The chip giant TSMC pledged $3.8 billion for a mammoth new semiconductor factory in Germany. The facility will produce 40,000 chips a month, mostly for cars and home appliances, and bring the company closer to many of its European customers. Yet the decision to build the factory in Germany is also rooted in geopolitics: While the company keeps its most advanced chip making facilities in Taiwan, it has announced three overseas facilities — in Germany, Arizona, and Japan — following increased calls in the U.S. and Europe for the “nearshoring” of supply chains. Taiwanese officials also framed the latest investment as part of efforts to deepen engagement with Europe as the self-ruled island battles Chinese claims of sovereignty.

Analysts worry over Ukraine support

Analysts voiced concern that Western equivocation over increasing weapons shipments to Ukraine was hampering Kyiv’s counteroffensive against Russia. “While the provision of Western support to Ukraine has seen some notable successes, the slow pace of decision-making has made it more difficult to capitalise on Russian weaknesses,” an analyst at the Royal United Services Institute, a London-based military think tank, wrote. And in The Washington Post, another analyst warned that “vacillation is costly. It not only squanders Ukrainian lives, but it also makes a protracted, grinding conflict more likely.” The latest worries came as a poll showed narrow majorities of Americans opposed additional funding for Ukraine and believed that the U.S. had done enough for the country.

Google eyes AI music deal

Google is in talks with major music labels to license artists’ voices and melodies for AI-generated songs, the Financial Times reported. Citing sources, the FT said the ultimate goal was to build a tool where fans could create legitimate tracks featuring artists’ songs and pay copyright-owners royalties, with musicians being allowed to opt-in to the program. Worries over the proliferation of AI-produced music have grown — one song that used the voices of Drake and others went viral this year — but some artists have sought to embrace the new technology: Grimes has offered to split royalties with those who use her voice, telling Wired, “It’s like, “Oh, sick, I might get to live forever.” I’m into self-replication.”

Niger junta digs in

Hopes for a resolution to Niger’s coup dimmed, as the country’s military junta rejected calls to release its democratically elected president and rebuffed regional and Western envoys. Ecowas, the West African bloc, was due to meet after the grouping’s earlier deadline for the reversal of the coup passed without any action. Major global powers seemed to hold limited sway — a senior U.S. official made little visible progress in talks with junta leaders — which should come as little surprise: “The most important politics in this and many other recent African crises are squarely African politics,” Howard French wrote in Foreign Policy. “Niger’s coup has created a truly geopolitical moment for Africans.”

Mexico hands airport to navy

Ownership of Mexico City’s international airport — the biggest in Latin America — was transferred from the government to the country’s navy, the latest move in a years-long power grab by the country’s armed forces. Once a critic of the military, leftist President Andrés Manuel López Obrador has relied on them to deliver his agenda, deploying troops for everything from patrolling streets to building infrastructure. Critics point to the militarization of Mexico’s economy as López Obrador’s principal legacy: During his administration, spending on the armed forces has swelled by more than 70%. “The army has become an entrepreneur,” a political analyst told the Financial Times. “How do you put the toothpaste back in the tube?”

Imran Khan barred from election

Pakistan’s electoral authority barred former Prime Minister Imran Khan from office for five years after he was jailed in a corruption case. The latest ruling means Khan — by far Pakistan’s most popular politician — cannot run in a general election due in the coming months, one he was widely expected to dominate after raising mass protests and marches following his ouster from office. Khan has appealed the conviction, and his case has consequences internationally: “Pakistan’s economic weakness and geopolitical setbacks have made it a supplicant rather than a partner” to allies such as China, the New Delhi-based expert C. Raja Mohan wrote. “Protecting against the negative outcomes of Pakistan’s internal change … must be part of India’s strategy.”

Ohio clears way for abortion vote

Voters in Ohio rejected a Republican-backed proposal that would have made it more difficult to reform the state’s constitution, delivering a victory to activists who aim to enshrine abortion rights in a vote this year. Issue 1, as the proposal was known, was a “blatant attempt to weaken voters’ voices and further erode the freedom of women to make their own health care decisions,” President Joe Biden said. The result repeated a pattern in which “Democrats have done unusually well in special elections this year, buoyed by a base of college-educated voters who are turning out for everything,” Semafor’s Dave Weigel wrote.

— For more from Dave, subscribe to his newsletter chronicling the U.S.’s political landscape, Americana. Sign up here.

Restoring sight with gene therapy

Gene therapy restored a child’s sight and could be used to restore millions more. The 14-year-old was born with a rare genetic condition which causes blisters on the skin and inside his eyes. The blisters scarred his corneas and left him blind. A new treatment used a virus to deliver working genes to his skin cells and treat the blisters there. A doctor asked the makers of that therapy to create an eyedrop version. It worked: After surgeons removed the scarring, the treatment prevented it from recurring. The teenager will need the treatment for life but can now see. Gene-therapy eye drops could be used on more common disorders, such as Fuchs’ dystrophy, which affects 18 million people in the U.S. alone, Medical Xpress reported.

Brazil monkey population rebounds

Golden lion tamarins — small monkeys with golden fur and long tails native to Brazil’s rainforest — are rebounding from the brink of extinction. Thanks to a vaccination campaign against yellow fever, which had decimated their number, and an increase in living space driven by a reforestation program, there are now about 4,800, up from as little as 200 in recent years, according to the Associated Press. Though they are still classed as endangered, the uptick points to the rapid progress that can be made by concerted conservation. Similarly, India managed to rebuild its tiger population by developing nature reserves, creating wildlife corridors, and even relocating entire villages.

• European Commission President Ursula von der Leyen visits Slovenia, which was hit recently by major floods.
• Ireland’s prime minister meets with leaders in Northern Ireland, which is suffering a protracted political crisis.
• The Writers’ Guild of America marks the 100th day of its strike.

Orders for Harley-Davidson motorcycles that Indian manufacturer Hero received after announcing the two companies would co-develop bikes in the country. Almost two-thirds of the orders were for the X440 model which sells for $3,250, close to 40% of the average yearly earnings in India. Harley-Davidson follows other storied brands, including the U.K.’s Triumph, in developing operations in the world’s biggest motorbike market.

Syrian cuisine is garnering increasing plaudits in culinary hubs around the world in part because, its proponents say, of interest in the cuisine sparked by the country’s civil war. Dubai’s Orfali Bros. Bistro recently broke into the World’s 50 Best Restaurants, Imad’s Kitchen in London is moving into a larger space, while SYKO in New York City and Nawal in Los Angeles are raising Syria’s food profile stateside. Though it is hard to disentangle from broader Middle Eastern cuisine, one Syrian chef characterized it thus to Bloomberg: “It is nafas — decadent, lush and soulful, the one kitchen that has no fuss.”

• Clean energy is booming. We’re about to waste almost all of it.
• How would a potential government shutdown impact Trump’s legal situation?
• A China-Philippines confrontation points to growing Pacific tensions.