The US trade deficit surged by 7.9 percent from the prior month to $78.8 billion in July, the highest level in more than two years. Some political elites may still have an irrational fear about a deficit in foreign trade, even though much of their anxiety is unnecessary.

Faced with a persistent trade deficit, the US has been overburdened by excessive anxiety and has adopted protectionist measures in recent years targeting certain goods imported from certain countries, including China, to whittle down imports and trade deficits. But clearly, political elites in Washington have failed to do so, as the US trade deficit continues to widen. It's a bit ironic: it is not the trade deficit that poses a risk to the US economy, but trade protectionism actions.

A closer look into the US trade deficit shows that growth in July was led by increases in US imports. US exports in July were $266.6 billion, $1.3 billion more than in June, while imports were $345.4 billion - $7.1 billion more than the previous month, official data showed. Obviously, the growth in imports exceeded that of exports, resulting in a widening trade deficit.

Analysts attribute the pickup in US merchandise imports to multiple factors. First, some importers want to get ahead of a potential dockworkers' strike as reported by some media outlets by shipping cargo into the US earlier than usual. Second, retailers have begun stocking up as they bet on a strong holiday season. That's led to a surge in imports. 

The ports of Los Angeles and Long Beach, in California, which account for roughly one-third of all US container imports, had their third-strongest month ever in July, according to Bloomberg. Retailers seem to be optimistic about American consumers' spending, especially in the holiday shopping season.

This is good news for the US economy. Consumption spending makes up two-thirds of the US economy on average, so a pickup in US merchandise imports serves, to some extent, as both a consumer confidence indicator and a leading indicator that bodes well for economic growth.

More specifically for trade between China and the US, official US data showed the US deficit with China increased by $4.9 billion to $27.2 billion in July. Exports to China fell $1.0 billion while imports advanced $3.9 billion.

Some US enterprises have been stockpiling products, components and parts from China, because of uncertainty over US tariffs. According to Reuters, the Biden administration on August 30 delayed an announcement of its final determinations for tariff hikes on some Chinese-made products including semiconductors, saying it will make a decision public in the "coming days." 

It seems US importers are trying to seize the time window to build inventories. It adds to evidence that made-in-China products are irresistible and irreplaceable. A complete economic "decoupling" between the two countries is impossible.

In general, a pickup in US merchandise imports is not necessarily a bad thing if it sends a signal that domestic consumption is recovering. The resulting trade deficit should not cause undue concern. If US policymakers seek to whittle down trade deficits and imports through protectionist trade measures, they will fail to solve existing problems but create new ones. 

They will also disrupt normal trade and economic activities, and force American importers to reduce their losses through various means, including building inventories. Excessive anxiety toward trade deficits and Washington's response to the issue - trade protectionism - may lead to bigger problems for the US economy.

A trade deficit is an indicator that a nation consumes more than it produces. The focus should be on increasing production and exports, instead of cutting consumption and imports. The US needs to further expand exports, especially those of high-tech, high-value-added products.

China does not deliberately pursue a trade surplus and the current trade imbalance between the two countries is a result of normal market operation, which is guided by the bilateral economic structure, industry competitiveness and the international division of labor. 

Based on the development of the international division of labor, the US has an advantage in the production of high-tech goods, but unfortunately, the country has in recent years embarked on a tightening of its export control rules when it comes to cutting-edge technology items such as chips. 

In this sense, the most effective way for the US to reduce its trade deficit is to ease export curbs and promote exports, rather than restricting imports by adopting trade protectionist measures.

The chief executive of Dutch semiconductor equipment maker ASML, which has been caught up in Washington's technology crackdown on China, said reportedly that US-led restrictions on the company's exports to China are becoming more "economically motivated" over time, noting that "there will be more pushback."

The remark shows the rising pressure imposed by the US on its allies in order to restrict chip equipment export to China. The restrictions have negatively impacted the profits of ASML and other similar companies, experts said on Thursday. 

The experts said that the serious disruption of global chip chains by the US will backfire on Western companies as they may lose the Chinese market in the long run.
"I think to make the case that this is about national security is getting harder and harder," Christophe Fouquet, the chief executive of ASML, said on Wednesday at a Citi conference in New York, Reuters reported.

"Most probably there will be more pressure for restrictions, but I also think there will be more pushback and I think we have to hope we reach a certain equilibrium, because as a business what we all want is a bit of clarity, a bit of stability," Fouquet said.

US pressure on its allies to restrict China's access to semiconductor manufacturing tools has directly affected companies like ASML, especially since they may lose the important Chinese market in the long run, Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Thursday.

The market won't support the economic coercion by the US, while strong demand for mature chips has driven the rapid development of China's semiconductor sector lately, analysts said.

Fu Liang, a veteran industry expert, told the Global Times on Thursday that Western companies including ASML are unlikely to abandon the vast Chinese market, and they will walk a fine line of complying with US rules while still serving their Chinese clients.

To further enhance the continuous power supply capacity of the large power grid and improve the power supply reliability from 220 kV Huanggong Substation in Jinghe county, Bortala Mongolian Autonomous Prefecture to Jilintai Hydropower Station in Yili Kazak Autonomous Prefecture, on August 16, staff members of State Grid Bortala Power Supply Company went to 220 kV Huanglin Line I and Line II to carry out inspection of the operation status of mountainous area lines and maintenance of pole number plates.

220 kV Huanglin Line I and Line II were put into operation in 2003 and 2005 respectively. They are important connecting lines between the power grid of Bortala Prefecture and the main power grid of Xinjiang region. Due to the complex terrain and high altitude, inspection is difficult. The inspectors adopted the traditional foot patrol inspection method and conducted a one-by-one inspection of foundation burial, tower material deformation, foundation scouring, geological cracks, ground clearance, and the integrity of pole number plates.

As an important sign of transmission lines, the pole number plate is the "identity card" of power lines. It not only shows the name and direction of the line but also undertakes the role of safety warning. Due to long-term sunlight and long-term rain washing, the color marks and fonts on most tower identification signs are blurred. Some are not firmly installed and get lost, bringing a lot of inconvenience to inspection work. For the pole number plates found to be faded, damaged, or missing, operation and maintenance personnel immediately carry out maintenance and replacement. 

"After replacing the pole number plates, we will continue to investigate potential line hazards and defects to ensure zero hazards and zero defects in power supply. In the later stage, the 'manual + drone' method will be used to increase the intensity of line inspection." said Liang Wei, the person in charge of the transmission maintenance class of State Grid Bortala Power Supply Company.

It is understood that the company has strengthened the inspection of the operation status of mountainous area lines of 220 kV Huanglin Line and the maintenance of pole number plates. A total of 168 mountainous area towers have been inspected and 295 pole number plates have been maintained.

China’s Ministry of Commerce (MOFCOM) on Tuesday announced decisive countermeasures against Canada, including plans to initiate dispute settlement proceedings at WTO and launch anti-discriminatory probes, in response to Canada’s decision to impose hefty additional tariffs on Chinese products, including electric vehicles (EVs), steel and aluminum.

Chinese officials and experts stressed that the countermeasures are in line with Chinese laws and regulations as well as WTO rules, and slammed that Canada’s move in lockstep with the US and the EU is egregious in nature and violates WTO rules. 

Among the countermeasures is a decision to initiate dispute settlement proceedings against Canada’s additional tariff against Chinese EVs and other products at the WTO to safeguard the interests of its industries.

In addition, China will launch an anti-discriminatory investigation into Canada’s decision of imposing additional tariffs on Chinese EVs, steel and aluminum, based on the Article 7 and Article 36 of China’s Foreign Trade Law.

The Article 7 of China’s Foreign Trade Law clearly stipulates that in the event that any country or region applies prohibitive, restrictive or other like measures on a discriminatory basis against China in respect of trade, China may, as the case may be, take countermeasures against the country or region in question.

The Article 36 of China’s Foreign Trade Law states that the authority responsible for foreign trade under the State Council may give a notice to the public the activities in violation of this Law for impairing foreign trade order.

The MOFCOM said that it will take subsequent measures based on the actual situation. Industry insiders said that the anti-discriminatory probe is the first of its kind, and is in line with both Chinese laws and WTO rules.

Also on Tuesday, the MOFCOM announced that at the request of domestic industry, China will launch an anti-dumping investigation into canola seeds imported from Canada, in better responding to industry concerns and in order to safeguard the legitimate rights and interests of the domestic enterprises.

In 2023, Canada’s exports of canola seeds to China reached $3.47 billion, increasing 170 percent year-on-year, even as prices continuously dropped, according to the MOFCOM. Affected by Canada’s unfair competition, Chinese domestic industries continue to suffer losses, the ministry said.    

In addition, China also plans to launch an anti-dumping probe into relevant chemical products from Canada based on application filed by Chinese domestic industries, the MOFCOM announced.

“China’s attitude is very clear and it will take all necessary measures to defend the legitimate rights and interests of Chinese companies,” the MOFCOM said, while announcing the measures. 

Chinese President Xi Jinping met with Felix Tshisekedi, president of the Democratic Republic of the Congo (DRC), here on Monday.

China Anti-Doping Agency (CHINADA) on Wednesday blasted a report by The New York Times published on Tuesday, which it says distorts and misrepresents facts about two elite Chinese swimmers who tested positive for a banned substance in 2022 and were found no wrongdoing in the case.

According to CHINADA, the athletes were provisionally suspended after trace amounts of the anabolic steroid metandienone were found in their tests.

After an extensive investigation, which included testing meat samples and nutritional supplements, the exact source of contamination could not be determined, CHINADA said, as it concluded that the athletes had ingested the steroid unwittingly and cleared them of wrongdoing in late 2023.

The results of such cases, where athletes are found to be without fault or negligence, are not made public to protect the athletes' rights, CHINADA said. This decision allowed the swimmers to resume competition after being provisionally suspended for over a year.

The decision was communicated to WADA and World Aquatics (WA), both of which endorsed CHINADA's findings.

CHINADA accused The New York Times of politicizing doping issues and attempting to disrupt the competitive environment of the Paris Olympics.

"The New York Times' insistence on politicizing the doping issue and frequently sensationalizing the global problem of food contamination is aimed at disrupting the order of the Paris Olympics swimming competition and undermining the psychological state and competitive ability of Chinese athletes," CHINADA said in its statement. "This is extremely unfair and unethical."

The organization highlighted that meat contamination with banned substances is a global issue, with similar cases occurring in many countries.

The World Anti-Doping Agency (WADA) has also reviewed the Chinese athletes' case, which found no evidence to dispute the contamination scenario, it said in a statement released on Tuesday.

WADA acknowledged the complexity of food contamination cases and emphasized the need for ongoing review and investigation into such incidents globally.

It also noted the prevalence of contamination cases worldwide and announced an investigation into the scale and risk of meat contamination with metandienone in China and other countries.

CHINADA highlighted a similar case involving American sprinter Erriyon Knighton, who tested positive for the anabolic steroid trenbolone but was cleared by the US Anti-Doping Agency (USADA) to compete at the Paris Olympics, citing meat contamination.

The China Anti-Doping Agency (CHINADA) on Thursday called for an independent investigation into the actions of the US Anti-Doping Agency (USADA), following latest revelations about the USADA's misconduct.

According to a Reuters report published on Wednesday, USADA has been implicated in serious violations of anti-doping regulations, allowing athletes who had doped to compete for years, without ever publishing or sanctioning their rule violations.

The Chinese anti-doping body emphasizes that USADA's actions severely compromised the integrity of sports, as it lacks transparency and operates with double standards.

"USADA has long ignored its own anti-doping shortcomings while attempting to impose double standards on other countries, exposing its hypocritical and inconsistent approach to anti-doping enforcement," CHINADA said in a statement sent to the Global Times.

This is the fifth statement that CHINADA has released since July to demand transparency and justice from the USADA for athletes.

The US hype since April 2024 on a 2021 food contamination case of Chinese swimmers had led to an excessive anti-doping testing scheme against Chinese athletes ahead of and during the Paris 2024 Olympics to prove their cleanness.

"The US' ultimate goal is to prevent China from advancing," Shen Yi, director of the International Research Institute of Global Cyberspace Governance at Fudan University, told the Global Times on Thursday. 

"Before the Paris Olympics, the hype on Chinese swimmers has been used to weaponize the anti-doping system. The aim is no longer to detect doping but to disrupt Chinese athletes' training and competition schedules under the guise of proving China's integrity," Shen said. 

The World Anti-Doping Agency (WADA) said Wednesday that USADA's actions are "in direct contravention of the World Anti-Doping Code and USADA's own rules."

These athletes were allowed to act as "undercover informants" for USADA, which is a practice that WADA instructed USADA to desist in 2021.

"This USADA scheme threatened the integrity of sporting competition, which the Code seeks to protect," WADA said in the statement. "By operating it, USADA was in clear breach of the rules."

International Olympic Committee (IOC) spokesperson Mark Adams expressed support for WADA on Thursday, saying the IOC will continue to work with its stakeholders to make sure there are "good and robust" anti-doping systems.

WADA highlighted that since 2011 USADA permitted at least three athletes who tested positive for steroids and erythropoietin (EPO) to continue competing until their retirement. 

CHINADA's latest statement also suspects whether USADA's board and the US Congress were aware of these breaches and the associated security risks. It calls for USADA to publicly disclose the details of the implicated cases and respond to public concerns. "We strongly call on the US Congress and the USADA Board of Directors to face up to the grave problem of doping in the US itself and the serious governance flaw in USADA," CHINADA said in the statement. "The US should enhance oversight and regulation of USADA, strengthen domestic anti-doping efforts, and immediately cease the overreach and interference in other countries' anti-doping efforts," CHINADA said.

Earlier on the same day, CHINADA, in a separate statement, called for intensified testing on US athletes to rebuild global trust in fair play, as US Olympic sprinting star Erriyon Knighton tested positive for banned steroid trenbolone during an out-of-competition test in March 2024 but was still allowed to compete in Paris.

Shang Ximeng, a research fellow at the Center for International Sport Communication and Diplomacy Studies at the Beijing Foreign Studies University, said the US has always been an exception in anti-doping efforts. "Despite that Chinese sports authorities did not target American athletes in a similar manner like the US hype did on Chinese athletes, the Chinese delegation still faces a lot of criticism in Paris," Shang told the Global Times. "China has demonstrated its integrity through more frequent testing, but this approach may not be the best way to protect the Chinese athletes' rights."

The doping disputes between China and the US are a microcosm of the broader strategic rivalry between the two countries, Shen Yi said.

CHINADA strongly called on the International Testing Agency (ITA) to intensify testing on the US track and field athletes, and recommended that the Athletics Integrity Unit (AIU) strengthen anti-doping supervision of the US Track and Field, prevent the doping risks and strictly investigate relevant cases in an endeavor to truly protect the legitimate rights and interests of the clean athletes around the world and to rebuild the trust of global athletes in fair play.

Chinese athletes should be subject to the same doping standards and procedures as their US counterparts, without any double standards, Shen noted. 

"The US has turned anti-doping measures into a tool to suppress countries outside the Western sphere, creating an unfair competitive environment for athletes from other nations," Shen told the Global Times. "If the US finds this unacceptable, then the US must adhere to China's standards and practices."

Xi holds talks with Vietnam's top leader To Lam in Beijing

Chinese President Xi Jinping and Brazilian President Luiz Inacio Lula da Silva on Thursday exchanged congratulatory messages on the 50th anniversary of diplomatic relations between China and Brazil, with experts saying that the two sides are expected to continue promoting exchanges in all areas underpinned by economic and trade cooperation.

China is ready to work with Brazil to take the 50th anniversary of diplomatic ties as a new starting point to jointly promote the building of a China-Brazil community with a shared future, Xi said in his congratulatory message to Lula, the Xinhua News Agency reported on Thursday.

China and Brazil, both major developing countries and key emerging markets, are like-minded good friends and partners that join hands and move forward together, Xi said.

For his part, Lula said over the past half century, the friendship between Brazil and China has been strengthened, and cooperation has become increasingly diversified, according to Xinhua.

Brazil-China ties are becoming increasingly important for building the multipolar order, as well as  a more just and effective global governance, Lula said, adding that bilateral ties play an underpinning role in the stability and predictability of the two countries and the world. He said that for the next 50 years of bilateral relations, the two countries will chart a new course together and create a bright shared future.

Lula said at an event on Wednesday that he will discuss a "long-term strategic partnership" with China later this year, Reuters reported on Wednesday.

The close ties between China and Brazil span many years, and Lula's remarks indicate that Brazil is looking to extend and advance the relationship with China, Dong Jingsheng, deputy director of Peking University's Latin America Research Center, told the Global Times on Thursday.

"The economies of the two sides enjoy considerable complementarity, making it possible to provide favorable conditions to advance the cooperation in other fields of the two countries." Dong noted.

Dong also believed that trade and economic relations serve as the foundation of the relationship between China and Brazil, as well as China's cooperation with other countries in Latin America, which in turn encourages political trust and people-to-people exchanges.

The rapid development of China-Brazil ties contributes not only to the economic and social development of the two countries, but also facilitates the engagement of Global South countries, analysts said, noting that this injects momentum into the transformation of the international system and the reform of the global governance system.

A breach in a dike along a river in Chifeng city, North China’s Inner Mongolia Autonomous Region, measuring 11 meters long, flooded 9,000 mu (600 hectares) of farmland. Following overnight efforts by local rescue teams, the breach was fully sealed by midday on Wednesday, according to China Central Television.

A total of 821 residents had been relocated with no casualties reported so far, CCTV reported. 

According to the local flood control and drought relief headquarters in Chifeng, a breach occurred along a section of the dike alongside the Laoha River in Songshan district on Tuesday, with the depth of the floodwater reaching as deep as 2.5 meters, Xinhua News Agency reported on Tuesday. 

The city immediately launched an IV-level emergency response for flood control and dispatched rescue forces to evacuate local residents and carry out rescue work. A total of 821 residents from 112 households from two villages were relocated to nearby temporary accommodation, local primary schools or clinics, with no casualties reported, according to Xinhua.

Despite of a round 9,000 mu of farmland was reported as being flooded, the floodwater did not flow into the village. 

Following an all-out effort by rescue forces made up of over 700 people from the military, armed police, fire fighter department and other professional rescue forces, the breach was closed by 4.5 meters as of 5:30 am on Wednesday, Xinhua reported on Wednesday.

On Tuesday, the State Flood Control and Drought Relief Headquarters dispatched an expert team to Inner Mongolia to assist and guide flood control and disaster relief work. The Ministry of Emergency Management urgently deployed 100 personnel and 35 rescue equipment units from a natural disaster engineering rescue base in Tangshan city, North China’s Hebei Province to the site and coordinated with surrounding state-owned enterprises to mobilize 460 personnel, 56 equipment units, and four helicopters, according to media reports. 

The Ministry of Water Resources on Tuesday activated a major flood and drought disaster dispatch and command mechanism, conducting consultations to assess the scope of the flood’s impact. They issued eight targeted emergency response recommendations, including immediately delineating the risk area affected by the breach, ensuring the immediate evacuation of all personnel within the risk area, and closing all reservoirs upstream of the breach. Authorities from Inner Mongolia Autonomous Region also dispatched experts to provide on-site guidance, China Central Television reported on Tuesday.