China’s economy is struggling but fears of sustained deflation are premature

Trade with rest of world is shrinking and youth unemployment is at 20% but state interventions are expected

China’s economy is struggling. The recovery after the lifting of Covid-19 restrictions is faltering. Its trade with the rest of the world is shrinking. A decade-long boom in house prices has come to an end.

The most obvious manifestation of the troubles besetting the world’s second biggest economy is that China is now officially in deflation. In the US, the UK and the eurozone, prices are rising – albeit not quite as fast as they were a few months ago – but in China they are actually falling.

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‘Worst nightmare’: South Korea mulls disastrous Scout jamboree

Youngsters faced a heatwave, flooded tents, sewage spills and an expensive evacuation – but concerns were raised before the event even began

Media outlets in South Korea have labelled its hosting of the World Scout Jamboree a “national disgrace”, a “survival game”, and a “worst nightmare”. Public outcry has intensified online and strangers are approaching scouts on the streets, apologising on behalf of their country and handing out gifts.

South Korea has successfully hosted large events such as the Fifa World Cup and Winter Olympics, but the mismanagement of the global scouting event, which struggled with heat and hygiene and eventually had to be evacuated as a typhoon approached, has left many wondering: where did it all go wrong?

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In previous downturns the world turned to China as an engine of growth – this time that driver may not be there

What might Chinese deflation mean for interest rates, commodity prices and even EV exports outside China?

When Australia’s central bank released its quarterly economic update last week, China’s “uncertain” economic outlook topped a list of domestic worries for Australia.

The International Monetary Fund too singled out China in its latest world economic outlook as among the “downside” tilts to its balance of risks.

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US and Beijing spar over shipwreck-turned-military outpost

Vessel becomes potential flashpoint as Beijing orders Philippines to remove wreck housing marines in South China Sea

An international row is growing between the Philippines, the US and China over a rusting ship that has been turned into a crucial military outpost in the South China Sea.

The dilapidated second world war-era ship was deliberately run aground on a tiny reef in the South China Sea in 1999 by the Philippines, and a small contingent of troops continue to stay on board to stake the country’s claim in the highly disputed water.

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Wednesday briefing: What went wrong at South Korea’s World Scout Jamboree?

In today’s newsletter: As thousands of scouts are evacuated from their quadrennial global get-together, the host nation’s handling of the event is in the spotlight

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Good morning. Imagine you are going on a school trip, but it’s with thousands of other schools, and the trip is to Fyre festival, and the guys from Trainspotting are taking care of the sanitation. Oh, and there’s an enormous hurricane on its way.

That may sum up what 4,500 British scouts have felt this week, after their trip of a lifetime to the World Scout Jamboree in South Korea turned into a bad comedy marked by successive calamities, natural and human-made, that yesterday culminated in the mass evacuation of all 43,000 young people.

Northern Ireland | A “monumental” data breach has exposed the names and rank of every serving Police Service of Northern Ireland (PSNI) officer. A spreadsheet was mistakenly published online for up to three hours in response to a freedom of information request. The Police Federation for Northern Ireland said it was a “breach of monumental proportions”.

Security | The data of millions of voters was accessible to hackers in a cyber-attack by “hostile actors” discovered almost a year ago, the Electoral Commission has admitted. The watchdog apologised for the security breach in which the names and addresses of millions of voters were accessible to hackers as far back as 2021.

Health | Millions of people under the age of 65 in England will be denied flu and Covid jabs this winter despite one of the government’s top public health officials warning that coronavirus has not “gone away”.

Conservatives | The Home Office spent more than £1,500 of public money painting over cartoon murals that were meant to welcome children to a controversial asylum reception centre, it can be revealed.

France | Five Marseille police officers have been detained for questioning over the death of a 27-year-old man during rioting in the French city on 1 July. The public prosecutor suggested it was “probable” Mohamed Bendriss died after “a violent shock to the thorax caused by a ‘flash-ball’ type projectile”, a controversial police weapon, that caused him to go into cardiac arrest.

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Guardian Essential poll New Zealand: National holds clear lead over Labour as election nears

Inaugural report shows Labour languishing on 29% of the vote while National records 34.5% as cost of living concerns dominate

A new political poll has put New Zealand’s centre-right opposition solidly ahead of the ruling Labour party in the lead up to October’s election, with the National and ACT parties recording the majority support needed to form a coalition government.

Labour languished on 29% of the vote in the Guardian Essential poll New Zealand, which polled more than 1,100 eligible voters, with National recording 34.5%. ACT received 11.6% of the vote. Respondents unsure about how they would vote – 6.1% of those surveyed – were included in the final result.

This poll was conducted by Essential Research and has a sample size of 1,163, using quotas set to be representative of the target population by age, gender and location. Respondents not eligible or not intending to vote are excluded from voting intention questions. Weighting is applied to the data using factors of age, gender, location and enrolment status, from Statistics New Zealand and New Zealand Electoral Commission data. The poll was conducted through online panels between 2-6 August 2023, has a maximum margin of error of +/- 2.9%, a weighting efficiency of 97%, and 6.1% were unsure on the party vote question. Unsure voters remain in the final result, but were removed for the purpose of calculating seats in Parliament. The full results are available at the Essential Report New Zealand.

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Chinese economy slips into deflation as recovery falters and demand slows

Consumer price inflation data shows prices fell by 0.3% year on year in July

China’s economy has fallen into deflation after consumer prices fell year on year last month for the first time in more than two years, official data shows, as slowing domestic spending weighs on the country’s post-Covid economic recovery.

The consumer price index, the main gauge of inflation, fell 0.3% in July, the National Bureau of Statistics of China (NBS) said, having flatlined in June. A survey of analysts had anticipated a 0.4% year-on-year decline.

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Thailand king’s estranged son makes surprise return after 27 years

Reappearance of Vacharaesorn Vivacharawongse raises questions over succession

The estranged second son of Thailand’s king has returned to Bangkok for the first time in almost three decades, in an unannounced visit that surprised many and raised questions about the succession plan.

Footage of Vacharaesorn Vivacharawongse making what appeared to be a low-key arrival at Suvarnabhumi airport on Sunday, and visiting sites in the capital, was shared widely on social media.

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China-Philippines dispute could escalate into superpower conflict, say analysts

Expert warns of ‘significant escalatory potential’ after Chinese coastguards used water cannon on Philippine boat

A territorial dispute between China and the US-aligned Philippines is at increasingly high risk of escalating into a conflict involving the two superpowers, analysts have said, after Chinese coastguards used a water cannon on a Philippine boat.

Global concern about China’s naval activities is growing as the country expands and modernises its military, and shows increasing aggression in its claims over the South China Sea and Taiwan. Joint drills with Russia – during which a flotilla sailed near Alaska this weekend – have also heightened concern over military coordination between Beijing and Moscow.

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Thousands of scouts evacuated from world jamboree in South Korea as storm nears

Government deploys 1,000 buses to move young people but insists programmes will continue elsewhere

Tens of thousands of scouts began arriving at university dormitories, training centres and hotels around Seoul and other inland cities on Tuesday afternoon as the South Korean government evacuated attenders at the World Scout Jamboree before a tropical storm.

More than 1,000 buses are being deployed to move 37,000 scouts – mostly teenagers visiting from 156 countries – from the site in the south-western county of Buan.

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South Korea to evacuate scout jamboree as typhoon looms

Site has been plagued by issues including heatwave that left hundreds ill last week

All participants at this year’s World Scout Jamboree in South Korea will be evacuated from the campsite before the scheduled end date of 12 August due to a typhoon that is expected to make landfall over the Korean peninsula in the coming days, in the latest blow to the event.

The World Organization of the Scout Movement (WOSM) said it had received confirmation from the South Korean government that, due to the expected impact of Typhoon Khanun, an early departure would be planned for all participants at the global youth event in the south-western county of Buan.

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Malaysian music festival to take legal action against the 1975

Promoters of the event claim that Matty Healy’s onstage kiss with bandmate ‘tarnished’ the festival’s reputation and are calling on the musicians to acknowledge liability and provide compensation

The organisers of the Good Vibes festival in Kuala Lumpur are taking legal action against the 1975 after frontman Matty Healy criticised Malaysia’s punitive anti-LGBTQ+ legislation during their headline set.

On 21 July, Healy told the crowd: “I don’t see the fucking point of inviting the 1975 to a country and then telling us who we can have sex with. Unfortunately, you don’t get a set of loads of uplifting songs because I’m fucking furious.

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Australia warns of economic weakness in Pacific as it outlines development goals – without mentioning China

Government updates development policy for the first time in a decade amid rising debt levels and competition with China for influence

Australian officials have sounded the alarm about rising debt levels and economic “fragility” among Pacific countries amid increasing competition with China for influence.

On Tuesday the Australian government will publish the first update of its international development policy in a decade, with a focus on the Pacific, south-east Asia and south Asia.

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UK Scouts says £1m cost of relocating jamboree will affect its work for years

Head of Scout Association says event in South Korea had been poorly organised even before threat of Typhoon Khanun

The £1m cost of relocating the 4,500-strong UK contingent at the World Scout Jamboree in South Korea will affect the work of the Scout Association for as much as five years, the organisation’s boss has said.

Matt Hyde, the UK Scouts chief executive, said the association had been forced to dip into its reserves after the event’s organisers decided to clear the campsite five days early because of an incoming typhoon that is expected to make landfall over the Korean peninsula in the coming days.

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Chinese soldiers pledge to sacrifice their lives in documentary on Taiwan invasion

‘Chasing Dreams’, an eight-part series aired on state TV, features testimony from dozens of soldiers

China has released a new documentary about the army’s preparations to attack Taiwan, showcasing soldiers pledging to give up their lives if needed, as Beijing continues to ramp up its rhetoric against the self-ruled island.

“Chasing Dreams”, an eight-part series aired by state broadcaster CCTV last week to mark the 96th anniversary of the People Liberation Army (PLA), features military drills and testimonials by dozens of soldiers, of which several express their willingness to die in a potential attack against Taiwan.

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China floods: at least 14 killed after torrential rain in north-east

Clean-up operations continue after rainfall destroys infrastructure and floods entire districts in aftermath of Typhoon Doksuri

At least 14 people are dead after torrential rain hit China’s north-eastern Jilin province, state media has reported, in the latest fatalities from more than a week of weather-related disasters across the country.

Thousands of troops have been sent into affected areas of Jilin and neighbouring Heilongjiang to assist with the flood response, evacuations, distributing supplies and fixing damaged roads. State media outlet Xinhua said about 2,000 soldiers and 5,000 members of the People’s Armed Police paramilitary force had been deployed.

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US dispatches warships after China and Russia send naval patrol near Alaska

Combined naval patrol appeared to be largest such flotilla to approach US territory and ‘highly provocative’, expert says

The US dispatched four navy warships as well as a reconnaissance airplane after multiple Chinese and Russian military vessels carried out a joint naval patrol near Alaska last week.

The combined naval patrol, which the Wall Street Journal first reported, appeared to be the largest such flotilla to approach US territory, according to experts that spoke to the outlet.

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Philippines accuses China of water cannon attack in Spratly Islands

Latest in long history of nautical intimidations by Beijing, which lays unrecognised claim to almost all of the South China Sea

The Philippines has accused China’s coast guard of firing water cannon at its vessels in the disputed South China Sea, describing it as illegal and dangerous.

The Philippine coast guard said its vessels had been carrying food, water, fuel and other supplies for Filipino military personnel stationed at Second Thomas Shoal in the Spratly Islands on Saturday.

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Russia ally Kim Jong-un demands more North Korean weapons output

Dictator tours factories making drone engines and rocket launchers and calls for ‘rapidly expanding production capacity’

Kim Jong-un visited several major North Korean arms factories this week, including facilities making engines for strategic cruise missiles, and called for increased weapons production, state media has reported.

The three-day inspection of the factories comes less than two weeks after the dictator attended a major military parade with Russian and Chinese officials, showcasing North Korea’s newest weapons, including intercontinental ballistic missiles and spy drones.

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Japan’s PM deplores ‘Russia’s nuclear threat’ on 78th anniversary of Hiroshima

Mayor of city where Little Boy atom bomb was dropped says nuclear deterrence is ‘folly’

Japan’s prime minister has hit out at Russian threats to use nuclear weapons as the country marked the 78th anniversary of the atomic bombing of Hiroshima.

Around 140,000 people died in Hiroshima on August 6, 1945 and 74,000 in Nagasaki three days later, when the United States dropped atomic bombs on the two Japanese cities days before the end of World War II.

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