Russia-China trade, which hit a record $245 billion in 2024 as Moscow turned to Beijing after Western sanctions, is now showing signs of decline. According to Chinese data, bilateral trade fell 8.1% year-on-year from January to July 2025, driven by reduced Russian oil exports to China and a sharp drop in Chinese vehicle sales to Russia. President Vladimir Putin, concerned about this slowdown, is seeking to stabilize and expand economic ties ahead of his planned summit with Chinese President Xi Jinping. Analysts say the talks will be crucial for Moscow as it leans heavily on Beijing to offset Western isolation.
US TARIFFS ON INDIA BACKFIRE, BOOST BRICS ROLE: ECONOMIST WOLFF
American economist Richard Wolff has criticized Washington’s approach toward India, warning that U.S. tariffs could undermine its own global influence. He said the United States is “acting like the world’s tough guy” but is “shooting itself in the foot,” as pressure on New Delhi only strengthens BRICS as a rising alternative to the West. Wolff highlighted India’s growing importance, calling it “the largest country on earth,” and likened U.S. pressure to “a mouse hitting his fist to an elephant.” Trump’s 50% tariffs on Indian goods, imposed over Russian oil purchases, have escalated tensions, while pushing India closer to BRICS partners.
JAPAN HALTS $550B US INVESTMENT TALKS AS TRADE TENSIONS RISE
Japan’s top trade negotiator, Ryosei Akazawa, abruptly cancelled a planned U.S. visit on Thursday, putting on hold the finalisation of a massive $550 billion investment package aimed at easing Washington’s punitive tariffs. The last-minute cancellation raises uncertainty over one of the largest Japan-U.S. investment deals in recent years. According to reports, the package was set to cover detailed financial arrangements, including how returns would be shared between Tokyo and Washington. U.S. Commerce Secretary Howard Lutnick had hinted at a formal announcement this week, but Akazawa’s withdrawal now threatens to delay or complicate the deal’s conclusion.
INDIA, CANADA TO RESTORE TIES WITH NEW ENVOYS
India and Canada have moved to restore strained relations by appointing new high commissioners to each other’s capitals, nearly 10 months after expelling their top envoys amid a political assassination dispute. Canadian Foreign Affairs Minister Anita Anand announced Christopher Cooter as Ottawa’s new envoy to New Delhi, while India’s foreign ministry confirmed that Dinesh Patnaik, currently serving in Spain, will soon assume his role in Ottawa. Ties collapsed after Canadian police accused India of involvement in the June 2023 killing of a Sikh activist near Vancouver. The fresh appointments signal cautious steps toward diplomatic normalisation.
TRUMP APPROVES $825M LONG-RANGE MISSILE SALE TO UKRAINE
U.S. President Donald Trump has approved the sale of 3,350 Extended Range Attack Munitions (ERAM) missiles to Ukraine, valued at $825 million, providing Kyiv with a significant military boost as it faces relentless Russian attacks. The announcement came on August 29, just hours after deadly Russian strikes hit Kyiv. The deal underscores Washington’s continued military support for Ukraine even as diplomatic efforts struggle to end the war. Earlier this month, Trump held separate meetings with both Russian and Ukrainian presidents and has announced plans for a joint summit involving both leaders in a bid to seek peace.
