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Market, Logistics, and Digital Technology in Yiwu: How the World’s Largest Small-Merchandise Center has Sustained its Trade Resilience

Market, Logistics, and Digital Technology in Yiwu

By Zhang Shuyue, Hunter Trylch and Xiangming Chen

As geopolitical tensions and tariffs disrupt global trade and supply chains, and businesses worry about eroded markets, fragile logistics, and the uncertain impact of digital technology, the Chinese city of Yiwu embodies these shifting relations as the world’s largest small-merchandise hub.

Global trade and logistical connectivity

Ms. Xu has run a jewelry packaging business in Yiwu for many years. She has witnessed the city’s rapid growth and constant renewal due to its premier status as the top global center for small merchandise. To her, Yiwu’s central market and commercial ecosystem undergird its economic prosperity and trade resilience. Ms. Luo, who manages a coffee equipment shop, relies on her personal network for market information while working closely with factories and suppliers to meet fast-changing customer demands in a competitive market environment.

During China’s recent National Day holiday in early October, when most people were on vacation, Yiwu bustled. Workers rushed to put the finishing touches to the Global Digital Trade Center, and the activity was equally intense in the six-generation district of Yiwu’s massive Futian Market and Yiwu International Trade City, which comprises five successive districts built over the past 40-plus years (photo 1). But how did all of this begin?

A poor rural county through the late 1970s, Yiwu was one of the few pioneers in China’s market reform and opening to trade, along with the special economic zone of Shenzhen, bordering Hong Kong. Farmers became entrepreneurs by bartering some local agricultural goods for others, which earned Yiwu the moniker of “exchanging chicken feathers for sugar.” This origin quickly unleashed a risk-taking entrepreneurial fervor and market dynamism. Farmers in Yiwu supplemented their incomes during the agricultural off-season by crafting and selling small commodities on the streets and in nearby towns. Although this type of street market was technically illegal, farmers were willing to risk losing their goods along with the scarce resources invested in them. This experiment forged a culture of resilience and resourcefulness and an instinct for commerce that would shape Yiwu’s transformation (Zhao & Fan, 2025).

In 1982, under the leadership of the then Party Secretary Xie Gaohua, the Yiwu government opened the city’s first small-commodity market (Yu, 2019). This decision marked a turning point, institutionalizing a practice that had long existed informally and paved the way for what would become the world’s largest small-merchandise wholesale / retail hub. Today Futian Market spans over four square kilometers of commercial floor space, containing more than 75,000 stalls (Miao, 2022) dedicated to the export of small commodities that reach markets around the world.

Yiwu’s trade-fueled economy did not take off by accident. Its local government played an essential role in steering the city’s trajectory, particularly recognizing the critical importance of logistics. In the 1990s, Yiwu began to integrate its trade networks with Ningbo-Zhoushan Port in Zhejiang province, one of the busiest maritime gateways in China. This partnership allowed Yiwu’s small commodities to flow to overseas markets along key international shipping routes. Located in the Yangtze River Delta, China’s largest economic region, Yiwu benefits from being relatively close to China’s and the world’s two largest ports: Shanghai, as the world’s no. 1 container port, and Ningbo-Zhoushan, its largest port for total cargo throughput.

Yiwu’s trade-fueled economy did not take off by accident. Its local government played an essential role in steering the city’s trajectory

China’s entry into the World Trade Organization (WTO) in 2001 accelerated Yiwu’s integration into the global economy. WTO membership obligated China to lower tariffs, remove non-tariff barriers, and abide by multilateral trade regimes. It granted China “most-favored-nation” status in many markets, most notably the United States, giving Chinese goods more secure access. This encouraged foreign buyers to source directly from Yiwu (Erten & Leight, 2022), which obtained more stable export conditions, less regulatory friction, and stronger incentives for private firms to trade internationally (Xie & Liu, 2021). Yiwu and its surrounding region built bonded logistics centers and processing facilities where goods could be stored or consolidated for final export (Shou, Shi, & Zhang, 2024). These logistical facilities lowered the fixed costs of international shipping, especially for small, export-dependent firms.

In the 2010s, Yiwu strengthened its logistics sector to further expand its global trade ties. The Yiwu–Europe freight railway created direct overland routes to European cities such as Madrid, London, and Duisburg (map 1). This reduction in delivery times over maritime shipping allowed Yiwu to reach consumers and businesses across Eurasia faster (Chang, 2024). Meanwhile, faster rail-sea intermodal links through Ningbo-Zhoushan Port further strengthened Yiwu’s trade connections to the Middle East and Africa.

Map 1. The Yiwu–Europe freight train network

MAP 1

Source: YXE (Yiwu-Xinjiang-Europe) portal. https://www.yixinou.com/en/lines

Upgrading logistics through technological advancement

The rapid expansion of Yiwu’s trade has heightened its demand for logistical support as it adapts to such uncertainties as geopolitical tensions and tariff disruptions. Yiwu’s extensive trade ties across the Global South provide its merchants with greater maneuverability and less reliance on major Western economies, especially the United States, which imported a lot from Yiwu for a long time. The first Trump presidential campaign sourced all MAGA hats and flags in 2015-16 and also ordered more memorabilia than the Biden campaign from Yiwu in 2024. While Yiwu still accounts for 60-70 per cent of Christmas holiday decorations sold in the US, China’s share of exports to the US fell dramatically from 20 per cent in 2018 to just 10 per cent in Q2 of 2025 (DWS Investment, 2025). As a leading trade city of Zhejiang, one of China’s three provinces most dependent on trade with the US, Yiwu has been an integral part of China’s shifting regional orientation toward global trade.

To enhance its trade diversification and flexibility, Yiwu has introduced a large set of e-commerce platforms and other digital technologies. The first major initiative in this regard was the launch of Yiwugo in 2012, which made it possible for all vendors to sell online with a required local registration. In 2019, the Yiwu government and Alibaba Group signed a strategic cooperation agreement that made Yiwu the first choice among China’s top exporting cities for the digitization of industrial chains, trade financing, and smart logistics.

Over the past decade, digital technological advances have facilitated Yiwu’s growth by aligning trade services with logistics development. Logistics in the digital age is no longer just about the physical movement of goods, but speeds up and stabilizes e-commerce transactions and product delivery across borders. Global platforms such as Alibaba, Pinduoduo, and Amazon have raised consumer expectations for low prices and fast delivery. Yiwu stands out in integrating these digital demands with its existing physical trade ecosystem, where online commerce does not replace but extends traditional trade capacity.

Through its integrated logistical development (table 1), Yiwu has diversified the shipping routes for its expansive global trade ties over time. The COVID-19 pandemic and geopolitical disruptions have only underscored the importance of this adaptability.

Table 1: Logistics development indicators under Yiwu’s 14th Five-Year plan (2021-25)

Table 1
Source: A Yiwu Government report (May 18, 2022, Table 1). http://www.yw.gov.cn/art/2022/5/18/art_1229420588_1775327.html

When maritime freight costs spiked early in the pandemic, Yiwu merchants turned to the Yiwu–Madrid freight train, which was launched in November 2014 as the world’s longest freight line, spanning eight countries, approximately 13,000 kilometers, and cross-border gauge changes in Kazakhstan and France. From a few annual runs early on, the Yiwu–Madrid freight train numbered over 1,000 by 2024, a decade later. Now regularized at two runs from Yiwu to Madrid and one run back each month, this line has steadied the shipping of Yiwu goods to Spain and parts of Europe in 18 days, compared with almost two months by sea. It even allows a large discount store on the Spanish island of Gran Canaria, off northwestern Africa, to sell goods from Yiwu.

After the Ukraine War in 2022 partly disrupted the China–Europe freight train routes through Russia and Central Europe via the “Northern Corridor,” Yiwu turned back more to its convenient maritime shipping. In August 2025, Yiwu sent a freight train to Ningbo-Zhoushan Port, where the 50 containers were then transshipped to the Port of Aden in Yemen, in 19 days. This new rail-sea intermodal shipping route benefits about 1,000 Yemeni-owned trading businesses in Yiwu (Zhang, Trylch, & Chen, 2025), as China-registered ships have been largely safe from the threat of northern-Yemeni Houthi militants to the Red Sea shipping channel during the recent Middle East conflict.

In growing and adjusting these global logistical connections, more Yiwu traders have also ramped up their use of WhatsApp, WeChat, Chinagoods, livestreaming, and short-form video platforms to reach and link with more overseas buyers, reinforcing the complementarity between digital commerce and physical logistics.

Conversations with local factory owners and managers reveal a shared emphasis on logistics and digital technology. Because many Yiwu businesses survive on high volumes and low margins, they must mobilize every available resource to stay competitive. One illustration is the informal labor network built through the online communication platform of WeChat. These self-organized groups function as flexible labor pools which allow migrant workers and retirees with limited education to take on such short-term tasks as packaging or moving semi-finished goods. Business employers, in turn, make quick compensatory payments online to ensure efficiency while avoiding lengthy managerial procedures. By embracing these tools, Yiwu has not only met the challenge of digital globalization to in-person business transactions but has also meshed local export / import markets with increasingly digitized global trade.

Critical infrastructure and trade resilience

Market-led expansion in Yiwu began organically. Local farmers seeded the primitive street market through bartering and small-scale sales. Migrant entrepreneurs and traders clustered in the first central market under relatively light local government assistance and regulation (Zhang, Trylch, & Chen, 2025). As this bottom-up marketization scaled up and became global, it called for and received growing and varied infrastructural support from the Yiwu government.

The government’s initial key infrastructural intervention was the construction of large-scale and multi-story buildings. They eventually formed the five districts of the International Trade City, which house more than 75,000 booths where over 200,000 vendors sell their products globally. Auxiliary infrastructural assistance included the construction of multi-story warehouses equipped with freight elevators around the central market for rapid parcel movement and turnover, while other micro-logistical facilities connected to the rail terminal, and trunk roads led to Ningbo–Zhoushan Port. At a finer scale, dense belts of mixed-use spaces converted from ground-floor shop fronts and upper-floor apartments allow people to handle small-batch orders without a significant upfront investment.

Government-enabled infrastructure provided both physical space and logistical capacity, which then allowed the trading market to “breathe” and blossom. Government planners have adopted flexible land supply and adaptive zoning to integrate functions that tend to be isolated or segmented in other cities. Commerce and logistics are coupled along designated corridors for heavy trucks and expanded rail–port intermodal links. In its new Yiwu Spatial Master Plan for 2021-35, the Yiwu government has structured its spatial layout to prioritize logistical infrastructure by building integrated hubs, centers, nodes, and corridors with the goal of enhancing the city’s efficiency and resilience built on its central trade market and commercial ecosystem for global trade.

Government-enabled infrastructure provided both physical space and logistical capacity, which then allowed the trading market to “breathe” and blossom.

Related but beyond its Master Plan, the Yiwu government began building the International Supply Chain and Logistics Center project in March 2025. With the planned use space of 23 hectares and construction space of 250,000 square meters to be completed in 2026, this new project will serve the combined functions of duty-free warehousing, exhibition, inspection, logistical transit, and industrial processing tied to Yiwu’s role as a nodal point on the China–Europe freight train, integral to the Belt and Road Initiative (BRI).

Yiwu has extended its logistical connectivity far beyond its local arena. In June 2022, Yiwu Market opened its first overseas branch in Dubai to cover the Middle East, which has a large number of traders based in Yiwu. The Yiwu Market-Dubai covers 200,000 square meters, divided into two purpose-built sections. The first section features 1,600 exhibition halls serving as shopping or trading spaces, while the second section comprises 324 warehouses. In 2025, Yiwu launched the Yiwu–Ningbo–Dubai rail-sea intermodal service to Jebel Ali, UAE. It reduces delivery time from 23 to 17 days and lowers shipping costs by about 18 per cent (Li & Wei, 2025). In late 2025, through Zhejiang China Commodities City Group, Yiwu opened the Yiwu Market Angola in Luanda, the capital city of Angola. This new Yiwu extension offers brand authorization and supply chain integration of business, people, goods, markets, and logistics. It will allow Yiwu to extend and localize its commercial model and logistical connectivity into the African market. Besides these two Yiwu-branded overseas markets, Yiwu has established 62 overseas sales and exhibition facilities in 29 countries.

To add a critical new piece to its expanding critical infrastructure, Yiwu opened the Global Digital Trade Center on October 14, 2025 (photo 2). Costing 8.3 billion RMB ($1.2 billion), the Center, which broke ground in 2022, consists of a central market, an office tower, a commercial zone, a digital trade port, and a group of high-end apartment buildings, whose total constructed space amounts to 1.25 million square meters. The Center’s heart, the large central market, occupies 400,000 square meters, one-third of the total complex (Wu, 2025). It can host around 3,700 vendors, each of which has 30 square meters of operating space, much larger than the typical booth in Districts 1-5, and some of which are equipped with large LCD screens for displaying AI-generated ads. Of the vendors who have already moved into the new central market, the so-called “creative” and new-generation businesses account for 52 per cent, while those owning their brands make up 57 per cent (De, Chen, & Wei, 2025).

The new Global Digital Trade Center prioritizes such product categories as fashionable jewelry, creative and trendy toys, and smart equipment and machinery, especially drones and robotics (photo 3). To feature and advance these higher-value-added and tech-intensive products, the Center has introduced a large model-based digital platform that offers powerful capabilities of AI-assisted product design and pricing, short-video creation, and instant translation of many languages to merchants on their phones and laptops for them to pitch their products to potential buyers. Another digital platform powered by machine learning algorithms collects and computes big data on product features, inventories, shelf time, and sales to help merchants lower transaction costs and increase profit margins by optimizing their supply chains and sales channels. The Global Digital Trade Center represents a strategic upgrading of Yiwu’s traditional market operation and recent e-commerce through large-scale digitalization and AI applications.

Market, Logistics, and Digital Technology in Yiwu

Trading up to stay resilient

The Yiwu story is about the miraculous rise of a small rural place to the pinnacle of global small- merchandise trade. This transformation has traveled the intersected path of market, logistics, and digital technology working together to drive hundreds of thousands of small traders working diligently to keep Yiwu highly competitive and resilient in global trade. These traders, many of whom have migrated to Yiwu as risk-taking job-seekers, have improved their lot through hard work and creative efforts. They are market-makers who have either survived or thrived in a cut-throat environment that has also led to many bankruptcies and failures. While they operated at the low end of the global market for small merchandise for years, some of them have benefited from a new round of government-provided infrastructure upgrading, most notably the recent launch of the Global Digital Trade Center.

The Yiwu government has acted as a market-enabler since the outset. It played a purposeful, albeit not dominant, role in centralizing Yiwu’s trade market by building a series of large physical structures to house the ever-growing number of small traders. In addition, the local government has provided both logistical and digital infrastructures to render the trade market more favorable for traders. By turning Yiwu into a key hub for the China–Europe freight train, the government has created more diverse and flexible shipping routes for traders. By launching the new Global Digital Trade Center, the Yiwu government has provided powerful digital platforms for traders to create more differentiated and higher-quality products that can reach more discriminating global consumers.

As global trade has turned more unfavorable due to geopolitics and tariffs, Yiwu stands to weather these headwinds as a model of how to keep trade resilient by trading up through market improvement, logistics development, and digital technological advancement.

Acknowledgements

We thank Professor Fan Lizhu and Dr. Wang Shuqiao at Fudan University, Professor Zhu Yaxiong at Zhejiang Normal University, and Ms. Xu. Ms. Li, and Ms. Chen in Yiwu for helping us with field interviews from the end of June and to early August, 2025. Wu Suchang ’23 and Mr. Al-Yousifi and his brother Basen helped us better understand Yiwu’s development. Hunter Trylch’s research in Yiwu was supported by the Thomas Urban China Endowment at Trinity College, Connecticut. Xiangming Chen’s research was supported in part by the Paul E. Raether Distinguished Professorship Fund at Trinity College.

This article was originally published in The European Business Review 20 November 2025. It can be accessed here: https://www.europeanbusinessreview.com/market-logistics-and-digital-technology-in-yiwu-how-the-worlds-largest-small-merchandise-center-has-sustained-its-trade-resilience

About the Authors

Zhang Shuyue

Zhang Shuyue is a scholar and researcher in Urban Studies based in Shanghai. He holds a Master’s degree from the University of Pennsylvania in Urban Planning and Policy and a Bachelor’s degree in Urban Studies and History from Trinity College. He is currently working on a project in a research group at Tongji University focused on regional integration in the Yangtze River Delta. He is also an avid freelance photographer.

Hunter Trylch

Hunter Trylch is a sophomore student at Trinity College, majoring in Economics while minoring in Chinese and Urban China Studies. Hunter learned Chinese during his early education in Hainan, China, and in 2014 moved to Washington, DC, where he is based today. He makes yearly trips back to China, preserving his cultural ties and Chinese-speaking capacity.

Xiangming Chen

Xiangming Chen is Paul E. Raether Distinguished Professor of Global Urban Studies and Sociology at Trinity College in Connecticut and an Associate Fellow at the Center for Advanced Security, Strategic and Integration Studies (CASSIS) at the University of Bonn, Germany. He has published extensively on urbanization and globalization with a focus on China and Asia as well as a frequent contributor on “China in the World” to The European Financial Review and The World Financial Review. He has also conducted policy research for the World Bank, the Asian Development Bank, UNCTAD, and OECD.

References:

Need to Open a Business Checking Account in Ohio? 5 Best Options

Business checking account

Small business owners must wear many hats, but one of the most crucial roles is that of money overseer. Before you open your doors for customers, you need a financial partner to support daily operations, payroll and keep your personal and business funds separate. Discover where to open a business checking account in Ohio.

Understanding What Matters Most When Choosing an Account

Businesses must choose a financial institution with transparent fees and procedures. The best business checking account for your company will depend on how you intend to use the account.

You want a system that is easy to manage and ready to grow alongside your company. Around 53% of small business owners have relationships with multiple financial service providers to meet their full credit needs.

Where Can I Open a Business Checking Account in OH?

Banks with online features and nearby branches that fit your schedule are a solid option. Institutions offering treasury management services or mobile banking apps can reduce administrative work and simplify financial management. With that in mind, here are some of the best business checking accounts in the state.

1. First Commonwealth Bank

First Commonwealth Bank offers a straightforward checking account for small business owners in Ohio. Services are available for small to midsize companies and organizations with high-volume transaction activity. Online banking and other tools help owners manage day-to-day needs, while Ohio branch staff assist entrepreneurs with onboarding and accepting cash deposits.

The company offers proprietors access to complimentary treasury management products. You can manage payments, remote deposits, merchant services and cash flow forecasting with these accounts. People who prefer the certainty and personal attention of a bank that understands the financial challenges of small and medium organizations often begin their banking relationships with First Commonwealth Bank.

2. Fifth Third Bank

Fifth Third Bank offers several types of business checking accounts that focus on predictable fees, daily banking convenience and a business dashboard to view transactions and balances. For larger establishments with more complex needs, Fifth Third offers treasury management solutions, including ACH origination, wire payments and fraud detection.

The bank’s business-minded educational tools and financial advice are designed to give new owners greater confidence in their early-stage decisions. Along with these offerings, businesses in metro regions of Ohio have cited proximity to branch locations and access to a wide range of digital offerings as benefits of the bank.

3. Huntington Bank

Huntington Bank is one of the best-known banks in Ohio, with local branches and a strong online presence. Huntington offers several options for customers, including fraud prevention services and cash flow management tools, such as expense tracking.

Huntington has a reputation among many commercial enterprises in Ohio as a reliable source for obtaining a line of credit or equipment financing. Its mobile app and customer service are also well-regarded. Huntington Bank has good coverage in the state.

4. U.S. Bank

The U.S. Bank business checking account plan offers small business owners a few options with no-nonsense monthly fees. It’s supported by a digital banking system and a high-rated mobile app that includes payment, invoicing and employee debit card functions. U.S. Bank offers a branch and ATM network for owners who wish to complete deposits in person.

The bank appeals to entrepreneurs who appreciate a national presence with service across Ohio. Its mobile and online banking tools, statewide locations and consistent pricing help businesses from every industry operate with predictability.

5. KeyBank

KeyBank serves most of Ohio. Its business checking accounts feature online bill pay, mobile check deposit and accounting software integration. KeyBank’s target users are small businesses and those transitioning to higher volume accounts.

Entrepreneurs seeking a flexible financing option can consider KeyBank’s credit lines. If you’re looking for a bank with deep regional connections, KeyBank offers a suitable combination of digital services and in-person services at its branches and commercial banking offices.

Top Business Checking Options in Ohio

Compare what each establishment offers.

Bank Best For Key Features Ohio Coverage
First Commonwealth Bank Balance of in-branch and digital banking Treasury tools and mobile banking Extensive coverage across Ohio
Fifth Third Bank Digital access Spending insights and wire services Statewide branches
Huntington Bank Convenient branch locations Cash-flow tools and strong fraud prevention Urban and suburban coverage statewide
U.S. Bank National access Payment tools and mobile invoicing Located in major Ohio cities
KeyBank Growing businesses Flexible credit options and software integration Broad regional network

What to Consider Before Choosing a Bank

Checking accounts are the pulse of daily operations. Entrepreneurs should choose a bank that meets their personal management style, including the frequency of monthly transactions, cash deposit patterns, borrowing needs and online banking habits. For example, a firm that handles a high volume of invoicing may prefer a provider with a robust digital dashboard. In contrast, a firm that makes numerous cash deposits may pick a provider with multiple branches.

Owners should also assess their future needs. Some banks offer scalable accounts, while others require account owners to upgrade their accounts once a certain amount has been processed. Financial institutions will also differ in customer service style. For example, proprietors who want in-person service may favor banks with more branches, while entrepreneurs who spend a lot of time on the road might desire mobile features.

Preparing for the Next Step

Consider one of the banks listed above for reliable customer service at various stages of your enterprise. Factor in your transaction volume, how you plan to run your business and your need to access your funds quickly. Selecting the right banking partner can help you smoothly transition into your next chapter and establish a foundation for future success.

Where to Find Top Experts on Section 174

Tax advisor Experts on Section 174

The recent changes to Internal Revenue Code (IRC) Section 174 now require companies to capitalize and amortize most research and development (R&D) costs over five or fifteen years, rather than deducting them immediately.

For those in finance, tax or operations, this shift means more paperwork and cash flow challenges. As a result, many businesses are seeking specialized tax advisors who understand Section 174 and can help them avoid costly errors and ensure compliance.

Methodology for Evaluating Section 174 Experts

The top Section 174 advisors were ranked based on the following criteria:

  • Dedicated focus: Prioritized firms specialize in Section 174 and R&D tax practices, ensuring they stay current on guidance and best practices.
  • Technical expertise: Top advisors combine tax professionals and industry specialists to accurately identify qualifying R&D activities.
  • Thought leadership: Establishments that publish practical analysis and guides on Section 174 were favored.
  • Proven track record: Consultants with client case studies, references, successful audits and strong reputations were favored.

Who Are the Top Experts on Section 174?

With the criteria in mind, the following businesses were selected as the top experts on Section 174.

1. alliant

alliant is often the first firm companies call when Section 174 gets complicated. It is a national specialist for R&D tax matters and compliance. If you’re trying to convert messy project spending into defensible tax treatments, its scale and process can handle that kind of work.

It leans on an established, repeatable methodology and a large national team. The firm has over 800 professionals, including attorneys, certified public accountants (CPAs), former IRS officials, and technical specialists who translate product and project activity into tax-ready documentation. alliant’s approach aims to do two things simultaneously — reduce audit risk by tightening documentation and maximize financial benefits by ensuring every dollar counts.

alliant maintains ISO 9001:2015 certification and adheres to AICPA SOC reporting standards. It has also earned community recognition, such as the Greater Houston Women’s Chamber of Commerce STEAM Advocate Award.

2. KBKG

KBKG is a national specialty tax firm known for hands-on R&D and Section 174 support. The company has a strong reputation in the R&D space by employing tax professionals alongside industry specialists to translate engineering and product work into defensible tax positions.

The firm offers a suite of services for Section 174, including cost identification and allocation, R&D tax credit work, and audit support. KBKG employs repeatable processes and provides templates to ensure documentation is consistent and that qualifying costs are properly supported.

With over 25 years of experience, KBKG works closely with CPA firms and finance teams, offering flexible, low-overhead engagements, quick turnaround and a single point of contact.

3. Source Advisors

Source Advisors is a specialty consulting firm built around an engineering-first approach to R&D tax work. It relies on technical rigor to ensure projects are assessed against Section 174 rules in the same manner as an auditor would.

Its team includes in-house engineers and technical analysts. Services include technical project studies, cost identification and allocation, R&D tax credit support, and audit defense assistance. It acts as a partner for companies that need engineering-grade documentation and has over four decades of experience to help clients save money and gain more cash flow.

In the United States, R&D activity totaled $892 billion in 2022, with the business sector accounting for $697 billion of that spending. With that scale, companies could have missed the opportunity to claim qualifying costs. Source Advisors helps translate these expenses into real tax and cash flow benefits, making specialized advice worthwhile.

4. Leyton

Leyton is a global innovation-funding specialist that helps companies capture R&D tax incentives, grants and other innovation credits. Its staff comprises a team of technical consultants who can engage in deeply scientific or engineering projects and produce the kind of technical studies and narratives auditors expect.

Leyton has over 25 years of experience conducting cutting-edge research. It operates internationally and helps clients using its tax-credit expertise, grant-writing and innovation-funding capabilities. These qualities ensure it can uncover funding sources beyond traditional tax relief.

When consultants package those sources together, they can deliver measurable results. It is estimated that less than three in 10 small businesses that qualify for the R&D tax credit actually claim it, while nearly every large company does. Firms like Leyton can help mid-market and growing companies capture benefits they might leave on the table without specialized help.

5. Tri-Merit

Tri-Merit is an R&D tax and Section 174 specialist that markets itself as CPA-friendly. It commonly works alongside a company’s existing accountant rather than replacing them. That partnership approach is central to Tri-Merit’s processes. It aims to be the technical R&D arm that plugs into an organization’s finance team.

The firm offers the usual set of services companies need for Section 174 work, from technical project studies to R&D tax credit analyses. Its teams typically include tax specialists and technical analysts who turn engineering and development activities into usable documentation.

Tri-Merit is a top choice for clients who want a partnership. It prioritizes clear handoffs and workflows designed to keep CPAs and in-house finance teams aligned.

Pick the Partner That Fits Your Risk and Scale

Navigating Section 174 is technical and can have significant cash flow and compliance consequences, so selecting the right advisor is crucial. Match the firm’s strengths to the size and complexity of your projects. Before you decide, get to know their methodology so you know how they will document and defend your R&D positions.

China Travel Warning Threatens Japan’s Tourism Recovery and Economic Outlook

China and Japan

Japan’s already vulnerable economy faces fresh pressure after China urged its citizens to avoid travel to the country, a move that follows sharp diplomatic tensions triggered by Prime Minister Sanae Takaichi’s recent comments on Taiwan. The warning delivered on Friday sent tourism related Japanese stocks lower and raised concerns about long term fallout.

Mainland Chinese travelers have been the largest group of foreign visitors to Japan this year, totaling about 5.7 million, or nearly 23 percent of all inbound arrivals, according to the Japan National Tourism Organisation. Economists warn that a sharp drop in this flow could further strain an economy weakened by U.S. tariffs and a slump in property investment.

Takahide Kiuchi, executive economist at Nomura Research Institute, estimated that the tensions could wipe 1.79 trillion yen off Japan’s GDP over one year, a 0.29 percent hit. He noted that Chinese arrivals fell nearly 8 percent in 2013 during the dispute over the Senkaku, or Diaoyu, islands, and said a similar pattern could unfold again.

Travel spending remains a critical engine for growth. The Mastercard Economics Institute said inbound tourism added 0.4 percentage point to Japan’s 0.1 percent GDP expansion last year. Stefan Angrick, head of Japan at Moody’s Analytics, said that “a sharp drop in Chinese travel to Japan would sting.” He added that if Chinese visitor numbers were cut in half, GDP growth could slide by 0.2 percentage point. “Hardly catastrophic, but an unwelcome drag for an economy already struggling to find traction,” Angrick said.

Japan posted a 0.4 percent quarterly contraction from July to September, its first decline in six quarters. On an annualized basis, output shrank 1.8 percent.

The diplomatic rift began on Nov. 8 when Takaichi said a Chinese attempt to seize Taiwan by force would trigger a “survival-threatening situation” for Japan and potentially oblige Tokyo to aid U.S. warships in breaking a blockade. China’s consul general in Osaka, Xue Jian, fired back on X, saying “the dirty neck that sticks itself in must be cut off,” a comment later removed. Tokyo summoned China’s ambassador to protest the “extremely inappropriate” remark, and Beijing in turn summoned Japan’s envoy. China also issued travel advisories and stepped up maritime and drone activity near the Senkaku islands, prompting Japan to scramble fighter jets.

Chinese state media continued the criticism, with CCTV calling Takaichi’s remarks an “extremely egregious nature and impact” and a “gross interference in China’s internal affairs.” Beijing regards Taiwan as part of its territory and has not ruled out using force. Taiwan rejects Beijing’s claim and insists its people alone determine the island’s future.

Analysts say the tensions may persist for months. David Roche, president of Quantum Strategy, said the dispute will continue until Takaichi retreats from signaling possible Japanese military involvement over Taiwan. “This is a big red line for China,” he said, adding that Beijing sees the comments as a clear sign Japan may join efforts to deter China. He noted that even Washington maintains “strategic ambiguity” under the 1979 Taiwan Relations Act, which says the U.S. “would consider any effort to determine the future of Taiwan by other than peaceful means” a serious concern but does not commit to its defense.

Tobias Harris, founder of Japan Foresight, said neither government can easily back down. Taiwan’s importance to Beijing and Takaichi’s insistence that she did not shift policy leave little room for compromise. Harris said the Japanese leader may actually benefit politically from holding firm, with approval ratings at 69 percent as of Nov. 16, among the highest in modern Japanese history.

Experts warn the clash could evolve into a “THAAD-like episode,” referring to China’s retaliation against South Korea in 2016 after the deployment of the U.S. Terminal High Altitude Area Defense system. That episode included boycotts, blocked group tours, and a “soft ban” on K-pop, causing years of strain. Observers say the current dispute could inflict a similar chill on political ties, economic links, and people to people exchanges.

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The Genesis of Israeli Utra-apartheid

social discrimination concept with many little white paper men around a different one on wooden base and dark background front view

By Dan Steinbock             

Unlike South African apartheid which backed supremacy and exploitation, Israeli apartheid condones ethnic cleansing, even mass atrocities – as evidenced by the obliteration of Gaza and anti-Palestinian violence in the West Bank.

On November 10, the Israeli parliament passed the first reading of a bill to impose the death penalty on Palestinian prisoners convicted of killing Israeli individuals, with 39 votes in favor and 16 against out of 120 members.

The bill would make it mandatory for Israeli courts to impose death penalty against individuals convicted of killing an Israeli “either intentionally or recklessly” if the act is motivated by “racism or hostility towards the public” and “committed with the objective of harming the state of Israel or the rebirth of the Jewish people.”

The shift towards requiring courts to impose the death penalty against Palestinians is a dangerous and dramatic step backwards and a product of ongoing impunity for Israel’s system of apartheid.”

The controversial and murky bill has been widely condemned by international and Palestinian human rights organizations and prisoners’ groups. As Amnesty International put it, “The shift towards requiring courts to impose the death penalty against Palestinians is a dangerous and dramatic step backwards and a product of ongoing impunity for Israel’s system of apartheid and its genocide in Gaza.”

However, as I have argued (here and here), such shift would be consistent with the Israeli far-right’s redemptionist dreams of Jewish supremacy and Greater Israel, which the Netanyahu cabinet has effectively condoned. It would also codify the move beyond classic apartheid.

Institutionalization of apartheid   

In South Africa, racial discrimination against black people began with large-scale colonization over four centuries ago. By the early 19th century, British settlers began to colonize the frontier regions. As takeoffs accelerated in in the late 19th century Europe, South Africa industrialized on the back of mining and infrastructure investment. But the Mineral Revolution was a revolution by, of and for the white colonial settlers.

Following the European powers’ scramble for Africa, the Anglo-Zulu War and two Boer Wars, the Boer republics were incorporated into the British Empire. Meanwhile, South Africa began to introduce more segregationist policies towards non-whites. The goals were reflected by the Afrikaans term apartheid (“separateness,” or “apart-hood”).

After the 1948 all-white elections, the National Party enforced white supremacy and racial separation. When the South African republic was established in 1961, it withdrew from the British Commonwealth.

International counter-reaction, black resistance

A year later, the UN General Assembly passed resolution 1761, which requested member states to break off diplomatic relations and cease trading with South Africa and to deny passage to South African ships and aircraft.

A special committee was set up calling for a boycott of South Africa. Though initially ignored, it found allies in the West, including the UK-based Anti-Apartheid Movement.

By 1973, the UN General Assembly agreed on the International Convention on the Suppression and Punishment of the Crime of Apartheid. In the process, “apartheid was declared to be a crime against humanity, with a scope that went far beyond South Africa.”

Popular uprisings ensued in black and colored townships in 1976 and 1985. But it wasn’t until the mid-1990s that the last vestiges of apartheid were abolished, and a new constitution was promulgated into law: one person, one vote.

South Africa and Israel as “apartheid states”          

The apartheid association between South Africa and Israel is not something new. After the UN vote against the South African apartheid in the early 1960s, the country’s prime minister Hendrik Verwoerd was particularly annoyed by Israel’s vote against South Africa’s segregation.

“Israel is not consistent in its new anti-apartheid attitude,” Verwoerd lamented. “They took Israel away from the Arabs after the Arabs lived there for a thousand years. In that, I agree with them. Israel, like South Africa, is an apartheid state.”

In effect, martial law had been imposed on the Arab citizens of Israel from 1948 to 1966, and it continues to be intermittently enforced to the present.

Effectively, the Israeli government imposed various restrictions on Palestinians, including on their mobility, with security checkpoints set up to enforce these permits allowing entry. Meanwhile, requests for government services for Arab Israelis were directed to military courts instead of civil courts. These measures were subsequently adopted in the occupied territories, particularly the West Bank.

Subsequently, the UN adopted the (non-binding) Declaration on the Elimination of All Forms of Racial Discrimination, sponsored mainly by the Arab League, the Soviet bloc and many new African states.

After the 1967 Six-Day-War and the Israeli occupation of Gaza and the West Bank, Palestinian resistance intensified, domestically and internationally. 

The debate on Israeli segregation   

Following the Yom Kippur War, the UN General Assembly’s Resolution 3236 recognized the Palestinian people’s right to self-determination, inviting the Palestine Liberation Organization (PLO) to participate in international diplomacy.

The oil crisis in 1975 paved the way to resolution 3379, which stated that “Zionism is a form of racism and racial discrimination.” In the UN, Israeli ambassador Chaim Herzog, the future president of Israel, stated the decision was “devoid of any moral or legal value.” Then, he tore the resolution in half.

At the end of the Cold War, Resolution 3379 was revoked by the UN Resolution 46/86, introduced by U.S. President George H. W. Bush. It contributed to Israel’s sense of impunity and the rise of its Messianic far-right. But Bush’s UN address wasn’t just about Zionism and racism. It was about wheeling and dealing. The revocation was Israel’s precondition for participation in the Madrid Conference of 1991, which paved the way to the Oslo Accords – which the Netanyahu cabinets have shunned ever since then.

In 2021, Isaac Herzog, the son of Chaim Herzog, became Israel’s president. When South Africa launched its genocide case against Israel, he declared it a “blood libel” against Jews. Later he shredded the UN Charter in protest of the UN General Assembly vote to boost the status of the Palestinian mission.

And yet it was in 2021 that Human Rights Watch warned that Israel had crossed the apartheid threshold. Many Israeli leaders agreed. A year later, Israel’s former attorney general, Michael Ben-Yair, said that “my country has sunk to such political and moral depths that it is now an apartheid regime.”

Two years later, he was seconded by the former speaker of the Israeli parliament, Avraham Burg. A month before the October 7 offensive, Mossad’s ex-chief Tamir Pardo concurred: “There is an apartheid state here,” since “two people are judged under two legal systems.”

In the case of South African apartheid, international restrictions fostered domestic opposition. But in the case of Israel, those measures proved soft. It was the ineptitude of the international community that reinforced the marginalization of the Israeli anti-apartheid opposition and the rise of Netanyahu’s far-right cabinet in late 2022.

Apartheid and ultra-apartheid   

In South Africa and Israel, apartheid rule has sought to crush all opposition by fragmenting territories, restricting mobility, forcing inequality and imposing segregation. Under the Likud and Netanyahu governments, Israel has been morphing into an apartheid state and its occupied territories into Palestinian Bantustans.

Yet, there are major differences with classic apartheid as enforced in South Africa and its Israeli version in the occupied territories. Apartheid policies can be formal and legal as in South African apartheid, or informal and semi-legal as in Israel’s treatment of the Palestinians.

In apartheid South Africa, a white minority dominated a black majority, whereas in Israel a Jewish majority discriminates against a Palestinian minority, keeping the Palestinians under military occupation.

Third, in South Africa, the objective of apartheid was to sustain a system of racial segregation in which one group is deprived of political and civil rights, and exploited as low-cost labor. During apartheid rule, the per capita income of South African blacks relative to the whites climbed from 8.6 to 13.5 percent. The Palestinians’ starting point relative to the Israelis was almost twice as high in percentage terms. But even before October 7, 2023, it had plunged to a lower level than that of South Africa’s blacks at the end of apartheid rule.

But the ultimate difference between South African apartheid and Israel’s ultra-apartheid is ethnic cleansing – as a prelude to worse.

The ultimate difference   

Unlike classic apartheid and its territorial fragmentation, degree of formality and labor exploitation, Israeli apartheid aims further. Since the UN Partition Plan, its ultimate purpose has been the Judaization of Arab Palestine and the drastic expansion of Israeli borders. Apartheid is an instrument to that goal.

Going beyond the norm, ultra-apartheid officially shuns classic apartheid, yet benefits from the low-cost labor while ultimately seeking its obliteration.

Apartheid South Africa was willing to live with segregated, exploited and underprivileged black people. By contrast, since the late 1970s, the Israeli system has sought to use segregation as an interim instrument to ethnically cleanse the occupied territories through Palestinian displacement, dispossession and, if necessary, abject devastation.

In this sense, Israeli apartheid differs from South African apartheid. It is ultra-apartheid. In Latin, ultra means “beyond”, or “on the far side of.” Going beyond the norm, ultra-apartheid officially shuns classic apartheid, yet benefits from the low-cost labor while ultimately seeking its obliteration.

Today, ultra-apartheid is the inspiration of settler violence in the West Bank and the “judicial reforms” by the Netanyahu cabinet, to accelerate the transformation of the secular and democratic Jewish state into a religious and autocratic regime.

The original version was published by Informed Comment (US) on November 18, 2025.

About the Author

Dr Dan SteinbockThe author of The Obliteration Doctrine (2025) and The Fall of Israel (2024), Dr Dan Steinbock, an expert of the multipolar world, is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net/  For the books and related commentaries, see https://www.differencegroup.net/new-books

Why AI Agents Aren’t Replacing Remote Workers Anytime Soon

AI Agent

By Dr. Gleb Tsipursky

The demos look slick, the promises even slicker. In slides and keynotes, agentic assistants plan, click, and ship your work while you sip coffee. Promoters like McKinsey call it the agentic AI advantage.

Then you put these systems on real client work and the wheels come off. The newest empirical benchmark from researchers at the Center for AI Safety and Scale AI finds current AI agents completing only a tiny fraction of jobs at a professional standard

Benchmarks, Not Buzzwords, Describe Reality

Headlines say “agents are here.” Data says otherwise. The new Remote Labor Index (RLI), a multi-domain benchmark built from 240 real freelance-type projects across 23 categories, reports an automation rate topping out at 2.5 percent across leading agents, meaning almost all deliverables would be rejected by a reasonable client. The dataset spans design, operations, BI, audio-video, game development, CAD, architecture, and more, reflecting the work that actually shows up in remote markets, not cherry-picked lab tasks.

The point is not that AI fails everywhere. RLI documents scattered wins in text-heavy data visualization, audio editing, and simple image generation.

The point is not that AI fails everywhere. RLI documents scattered wins in text-heavy data visualization, audio editing, and simple image generation. But the failures are systematic. Reviewers cite empty or corrupt files, missing assets, low-grade visuals, and inconsistencies across deliverables, the kinds of misses that doom client work regardless of clever reasoning traces. These aren’t close calls. Inter-annotator agreement sits at 94.4 percent for the accept-or-reject decision, so we are not talking about taste.

If you need a concrete sense of difficulty, the benchmark’s human reference projects averaged 28.9 hours to complete, with a median of 11.5 hours and an average price of $632.6. Those are realistic project sizes. They include work like a World Happiness Report dashboard, a 2D promo for a tree services firm, 3D animations for new earbuds, an IEEE-formatted paper, an architectural concept for a container home, and a “Watermelon Game”-style casual web game. This is the right yardstick for agent claims. a

Other grounded evaluations tell a similar story, such as the WebArena benchmark. And in software, SWE-bench shows that turning model skill into working patches across real repositories remains hard without tight scaffolding.

Tasks Automate: Projects Still Require Adults In The Room

When I work with companies on AI adoption, I push a simple framing. Use AI to do well-scoped tasks inside a project, not to run the project. That rule aligns with the published evidence from benchmarks. The RLI team notes pockets of success in content drafting, audio cleanup, image assets, and basic data visualization, which pair nicely with human review in marketing, product, and analytics teams. In my client work, this shows up as faster ad variants, cleaner query logic, quicker explainer scripts, and first-pass chart code that a developer can polish.

Contrast those gains with multi-hour, multi-file builds that require iterative verification. In METR’s HCAST findings, agents succeed 70–80 percent on tasks humans do in under an hour, and under 20 percent on tasks that take humans more than four hours. That is the difference between automating a component and carrying a project across the finish line.

This gap explains why the RLI authors also track a relative “Elo” progress signal, which rises over time even as absolute project completion stays low. Improvement is real. Hype overstates what that improvement means for near-term automation of whole projects.

Plan For Augmentation Now, Not Mass Replacement

Hype has a business model. The agentic AI advantage storyline promises proactive, goal-driven assistants that automate complex processes across the firm. Markets respond to bold claims, then teams inherit the risk. Gartner even warns that more than two out of five so-called agentic initiatives will be scrapped by 2027 due to unclear value and rising costs, a wave of “agent washing” where conventional tooling gets relabeled as autonomy.

The balanced plan is to redesign work so humans direct, verify, and integrate agent outputs, then let evidence guide scope increase. OpenAI’s GDPval report shows that with human oversight, frontier models are approaching expert quality on carefully defined, economically valuable tasks. That supports staffing models where you automate slices of jobs, not the jobs themselves. It also matches early labor data. A recent Stanford employment analysis reports wage gains in AI-exposed roles without broad, immediate job loss, consistent with a world where AI changes task mix before it wipes out occupations.

Expect headcount to shift as pieces of marketing, writing, programming, and analysis take fewer people, while roles that specify goals, judge quality, and integrate outputs become more central.

The near-term playbook is straightforward. Use AI to reduce cycle time on repeatable tasks. Assign owners to verify outputs. Track acceptance rates and defect types, the same way the RLI evaluators categorized corrupt files, missing components, inconsistent renders, and low-quality assets. Expect headcount to shift as pieces of marketing, writing, programming, and analysis take fewer people, while roles that specify goals, judge quality, and integrate outputs become more central. On current trend lines, more capable AI agents will arrive over the next few years, helped by scaffolded workflows and better tool use, yet the evidence says whole-project autonomy for general remote-capable work is not a short-term outcome, regardless of hype from McKinsey and others.

Conclusion

Agentic AI is exciting, but real benchmarks beat glossy promises. The Remote Labor Index shows tiny automation rates on the kinds of projects companies actually pay for, backed by strong evaluation methods and consistent with other grounded benchmarks on web and desktop tasks. Progress will continue, and the smart move is to treat agents as force multipliers inside projects while humans stay accountable for outcomes. Leaders who adopt with discipline will bank the gains today and be ready for tomorrow without buying into a bubble.

About the Author

Dr. Gleb TsipurskyDr. Gleb Tsipursky PhD, serves as the CEO of the hybrid work consultancy Disaster Avoidance Experts and authored the best-seller Returning to the Office and Leading Hybrid and Remote Teams. He was named “Office Whisperer” by The New York Times for helping leaders overcome frustrations with Generative AI. He serves as the CEO of the future-of-work consultancy Disaster Avoidance Experts. Dr. Gleb wrote seven best-selling books, and his two most recent ones are Returning to the Office and Leading Hybrid and Remote Teams and ChatGPT for Leaders and Content Creators: Unlocking the Potential of Generative AI. His cutting-edge thought leadership was featured in over 650 articles and 550 interviews in Harvard Business ReviewInc. MagazineUSA TodayCBS NewsFox NewsTimeBusiness InsiderFortuneThe New York Times, and elsewhere. His writing was translated into Chinese, Spanish, Russian, Polish, Korean, French, Vietnamese, German, and other languages. His expertise comes from over 20 years of consultingcoaching, and speaking and training for Fortune 500 companies from Aflac to Xerox. It also comes from over 15 years in academia as a behavioral scientist, with 8 years as a lecturer at UNC-Chapel Hill and 7 years as a professor at Ohio State. A proud Ukrainian American, Dr. Gleb lives in Columbus, Ohio.

Fed Officials Signal Growing Concern Over Weakening U.S. Job Market

Two senior Federal Reserve policymakers warned Monday that the labor market is losing strength, sharpening the debate over whether the central bank should deliver another rate cut at its final meeting of the year.

Fed governor Chris Waller said he supports lowering interest rates next month, arguing that a softening job market is now a greater risk than a resurgence in inflation. He signaled that upcoming data, including the September jobs report due this week, is unlikely to change his view.

“The data leads me, at this moment, to support a cut in the FOMC’s policy rate at our next meeting on December 9 and 10 as a matter of risk management,” Waller said in a speech titled “The Case for Continuing Rate Cuts.” He added that “a December cut will provide additional insurance against an acceleration in the weakening of the labor market and move policy toward a more neutral setting.”

Waller said he believes the labor market is “still weak and near stall speed,” pointing to Labor Department figures from May through August that showed job creation slowed sharply. After revisions, he said it is likely employment actually declined during that period. He argued that weaker demand for workers, rather than reduced labor supply from lower immigration, is driving the downturn.

He also dismissed concerns that data uncertainty should delay action, adding that he sees no signs of rising wage growth, increasing job openings or a higher quits rate that would suggest a worker shortage rather than weakening demand.

Fed vice chair Philip Jefferson struck a more cautious tone. While acknowledging that “downside risks to employment have increased” relative to inflation pressures, he urged a slower pace in easing.

“The current policy stance is still somewhat restrictive, but we have moved it closer to its neutral level that neither restricts nor stimulates the economy,” Jefferson said in a speech in Kansas City. He stressed that “the evolving balance of risks underscores the need to proceed slowly as we approach the neutral rate.”

Jefferson noted that the central bank may receive limited government data ahead of the Dec. 9 to 10 meeting because of delays linked to the recent shutdown, saying that a “meeting-by-meeting approach” is “an especially prudent approach” in the current environment.

He said inflation may have stalled around 3 percent due to tariffs, but he still expects the tariff impact to be a one time price increase instead of the start of broader inflation pressures. He pointed to unemployment insurance claims that have moved sideways in recent weeks and said anecdotal evidence on the labor market remains mixed.

Waller said inflation data through September continued to show only small effects from tariffs, reinforcing his view that tariffs are raising prices temporarily rather than driving a sustained rise. Excluding these effects, he believes inflation is close to the Fed’s 2 percent goal.

He also cited “soft” data such as the steep October decline in consumer sentiment measured by the University of Michigan. He noted the drop was broad based across demographic groups, except among stockholders, and added that past declines in sentiment have often preceded recessions.

Their remarks highlight growing divisions inside the Fed. Kansas City Fed president Jeff Schmid and Boston Fed president Susan Collins have recently voiced concerns about cutting rates further, warning that inflation remains too high.

Market expectations for a December rate cut have fallen sharply. Traders now see a 42 percent chance of easing next month, down from 94 percent only a month ago, as uncertainty builds over how the Fed will interpret weakening labor data and sticky prices.

Related Readings:

How Philippines Chose to Sideline Climate Security

Houses in the Philippines destroyed by Typhoon

By Dan Steinbock             

In climate risk rankings, the Philippines is ground zero. Yet, given the choice to redefine the notion of security in 2022, it chose to shun it.

Despite seven decades of climate denialism, funded primarily by the world’s largest energy giants in the United States and, to a lesser degree, in Western Europe, the elevated risks associated with climate change and extreme weather events are today widely recognized.

In the climate risk and disaster rankings, the Philippines is not just any other nation. The disaster-prone archipelago nation is ground zero of climate disaster risk.   

World’s greatest disaster-risk zone  

The World Risk Index 2025 indicates the disaster risk for 193 countries, or over 99% of the global population. The Philippines is once again at the top of the Index; way ahead of other disaster-prone countries, including India, Indonesia, Colombia, Mexico and Myanmar.

Thanks to its great geographic fragmentation and extraordinarily high exposure to weather-related extremes, the Philippine risk profile is characterized by a variety of natural hazards, with river and coastal flooding playing a particularly central role.

Even before the recent typhoons, the findings showed that the country’s exposure is particularly high in regions with flat topography, high population density, and inadequate drainage infrastructure.

And when extreme weather events are on the rise, vulnerable communities are bearing the brunt.

Floods are among the most severe hazards of our time — with devastating consequences for people, infrastructure, and ecosystems. Climate change is exacerbating this threat. And when extreme weather events are on the rise, vulnerable communities are bearing the brunt. In the Philippines where half of the population defines itself as poor, the implications are severe.

Furthermore, uncontrolled urbanization, industrial agriculture as a driver of soil degradation, and inadequate preventive measures further increase the vulnerability of many regions – not to mention pervasive corruption.

The Philippines is a textbook case of what happens when disaster risk is amplified.

Figure 1: The World Risk Leader: The Philippines

The World Risk Leader: The Philippines
Source: WorldRiskIndex 2025

Increasing GDP losses are coming   

Climate change poses major risks for development in the Philippines, with temperature increases, changing rainfall patterns, and rising sea levels that hamper economic activities, damage infrastructure, and induce deep social disruptions. Just one example: According to the National Mapping and Resource Information Authority (NAMRIA), sea level in Metro Manila has risen by an average of 8.4 millimeters a year from 1901 until 2022, almost three times the global average of 3.4 mm/year in the same period.

Projections made by the Intergovernmental Panel on Climate Change’s (IPCC) suggest that temperatures in the Philippines will continue to increase by about 1-2°C by the end of the 21st century, depending on the climate scenario. (I believe that these estimates may actually prove conservative because the IPCC modeling downplays feedback effects. The climate impact is likely to hit harder, earlier and broader than expected.)

According to World Bank’s 2022 Philippines report, annual losses from typhoons are estimated to reach 1.2% of the GDP and as much as 4.6% of GDP in extreme cases like Super Typhoon Yolanda (Haiyan) in 2013. After all, variability and intensity of rainfall are likely to increase. And extreme events will become stronger and more frequent.

Figure 2: The High Economic and Human Costs to Come

The High Economic and Human Costs to Come
Source: The Philippines World Bank Climate and Development Report, 2022

The economic damages in the Philippines could reach up to 7.6% of GDP by 2030 and 13.6% of GDP by 2040. While climate change effects will vary across and within regions, all sectors will be affected.

And yet, even today the scarce economic resources in the Philippines are too often misallocated (rearmament drive instead of inter-state diplomacy), mismanaged (neoliberalism instead of human security) and misplaced (corruption instead of people’s welfare).

As World Bank warned in 2022, “policy inaction would impose substantial economic and human costs, especially for the poor.” 

Could the government have opted an alternative policy approach that would have tackled the devastating climate losses? Yes. But that approach was deliberately killed – ironically, in the name of national security.

The promise of human security

From the standpoint of disaster risk and extreme climate, one of the most inspiring appointments after the election of 2022 was that of Clarita Carlos to serve as President Marcos Jr’s National Security Adviser. She was the first female and the first civilian to lead the institution.

Upon assuming office, Carlos, a highly-regarded political scientist, planned to undertake a “human security” approach that focuses more on the daily lives of the Filipinos. It was the right idea in the right time and in the right place.

Historically, this broader view of human security builds on the 1994 Human Development Report by the UN Development Program, which equated it “with people rather than territories and with development rather than arms.” [my italics, DS]

Accordingly, threats to human security may be classified into economic, food, health, environmental, personal, community, and political security. This approach would encourage the government to focus its strengths on its greatest enemy: the risk of climate disaster.

But what about the South China Sea tensions? During Carlos’s reign, the Philippines reaffirmed its commitment to international law and the rule of law in inter-state relations. In territorial maritime disputes, Manila would defend its views by being at the forefront of diplomatic efforts aiming at ASEAN-China South China Sea Code of Conduct.

The objective was to ensure peace and stability in the region, while focusing on economic development that had made Asia the global growth engine. That, in turn, is vital to garner the resources to fight the climate disaster risks in the coming decades.

Yet, that’s when the government made its U-turn.

Ignoring the climate focus   

In mid-January 2023, Carlos resigned after the president relayed to her “some information” which she could not disclose in public “because it is a delicate national security issue.”

As she acknowledged two weeks later, she had been opposed by the military since day one. In contrast to Carlos, the military saw as the prime security issue “the perceived external threat beyond our shores.”

The longer it will take to embrace a human security approach, the heavier will be the penalties of disaster risks.

Barely a day after Carlos’s interview, President Marcos Jr granted U.S. wider access to military bases. Soon thereafter, the Duterte-Marcos alliance fell apart, mud-slinging superseded politics as usual, former President Duterte was deported to the Hague, ASEAN unity was undermined, geopolitical tensions soared and Filipinos’ livelihoods were ignored.

The longer it will take to embrace a human security approach, the heavier will be the penalties of disaster risks and extreme weather as the Philippines continues its descent into the ground zero of extreme climate.

But that course is not inevitable. It, too, could be reversed. After all, climate risk is not just a political matter. In the Philippines, it is an existential issue.

The original version was released by The Manila Times on November 16, 2025.

About the Author

Dr Dan SteinbockDr Dan Steinbock is an internationally recognized strategist of the multipolar world and the founder of Difference Group. He has served at the India, China and America Institute (USA), Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net

The Ultimate Goal of Jewish Settler Violence in the West Bank

Violence in the West Bank

By Dan Steinbock             

In October, amid the two-year anniversary of the Gaza genocide, Jewish settler attacks on Palestinians in the West Bank hit an all-time high. And they will escalate – as long as they are allowed by U.S.-led West.

On Thursday dawn, Israeli settlers set fire to the Hajja Hamida Mosque in the Palestinian village of Deir Istiya in the north of the West Bank. Photographs taken at the scene showed racist, anti-Palestinian slogans sprayed on the walls of the mosque, which was damaged in the blaze. Copies of the Quran – the Islamic holy book – were also burned.

October 2025 recorded the highest monthly number of Israeli settler attacks since the UN Humanitarian office (OCHA) began documenting such incidents in 2006. That’s more than 260 attacks resulting in casualties, property damage or both – an average of eight incidents per day.

Reminiscent of the Gaza atrocities, one in every five Palestinians killed by Israeli forces in 2025 across the West Bank, including East Jerusalem, is a child.

During this olive harvest season, settler violence has reached the highest level recorded in recent years, with the injury of more than 150 Palestinians and the vandalism of over 5,700 trees.

It is ethnic cleansing aiming at involuntary population transfer and, unless disrupted, mass atrocities.

This violence is not a fringe phenomenon. It is deliberate, systematic and escalatory. Shunning all international condemnation, it seeks to establish new “facts on the ground.” It is ethnic cleansing aiming at involuntary population transfer and, unless disrupted, mass atrocities.  

From vigilantes to state terror   

At the beginning of 2024, Zvi Sukkot, Knesset member of the Religious Zionist Party and a colleague of the self-proclaimed fascist Bezalel Smotrich, urged the government to “occupy, annex, and demolish all the houses [in Gaza], and build large neighborhoods and settlements.” It sounded harsh, but the zealot was consistent. He had a dream. What happened in Gaza would not stay there but spread to the West Bank.

A far-right Jewish settler living illegally in the West Bank, Sukkot is a former member of The Revolt, a violent Jewish terror group, which has engaged in numerous arson attacks. The group advocates the dismantling of the Israeli state to establish the Kingdom of Israel that follows Jewish Law rather than the rule of (secular) law.

In 2010, Sukkot was arrested in an investigation of a mosque arson and expelled from the West Bank for violent anti-Palestinian attacks. He had defended Jews suspected of firebombing a Palestinian family and been arrested for alleged involvement in “price tagging”; that is, vandalism and violent settler attacks against Palestinians.

As of 2017, the group was still active, in what the Shin Bet internal security agency calls “the second generation of…The Revolt.”

By early 2023, Sukkot had made it to the Knesset, the Israeli parliament. And after October 7, Prime Minister Netanyahu appointed him to chair the Knesset Subcommittee for “Judea and Samaria” (read: the West Bank).

https://www.facebook.com/trtworld/videos/far-right-israeli-knesset-member-to-head-subcommittee-on-the-occupied-west-bank/357092423383774/

To the settlers, Sukkot is a success story reflecting the march of extremist settlers to the Israeli institutions in the past two decades.

As a member of The Revolt, Sukkot could only firebomb a few Palestinians, mosques and churches. It wasn’t efficient. Now he is in a position to shape the future of the land. He is no longer fighting those in charge. He is in charge.

How did the Messianic far-right march into institutions they once hoped to pull to pieces? Ostensibly, democratically. With the rise of the Jewish dual state, the Netanyahu cabinets have subverted the secular democratic state. The parallels are alarming. Similar trajectories broke the back of the Weimar Republic a century ago.

Ironically, the Israeli settlement policy was first developed by the Labor governments, which paved the way for the foxes to take over the henhouse.

The rise of Jewish settlements   

Since the 1970s there has been a tacit collusion between the Israeli state and the settlers. It is a symbiotic system. The state takes over land, while the settlers, who seek land to further their agenda, engage in violence against Palestinians to achieve their expulsion.

Occasionally, the two cooperate directly, but the preference is to retain an arm’s length distance, to preserve the semblance of the rule of law. The ultimate aim of settler violence is to foster Greater Israel; that is, a Jewish-only space between the Jordan River and the Mediterranean.

A new stage ensued in 2018, when the Basic Law codified that “the State views the development of Jewish settlement as a national value, and shall act to encourage and promote its establishment and strengthening.” In keeping with this principle, Israel has dispossessed Palestinians in the West Bank to use their land to build new settlements and to expand existing ones.

According to international law, an occupier must not confiscate land for the needs of the occupier. So, Israel came up with the legal acrobatics of “declaring” instead of “confiscating” land. Based on a subversion of the Ottoman land law from 1858, this bizarre interpretation allowed Israel to take over 16 percent of the West Bank prior to October 7; or 500 to 5,000 dunams per year. Amid the Gaza genocide in the first half of 2024, declarations of state land shot to 24,000 dunams. In other words, while Gaza was burning, Israeli occupation authorities were rushing to take over the West Bank.

Under the labor coalition, the number of settlements grew slowly until the election triumph of the Israeli hard right in the late 1970s. That’s when Prime Minister Begin initiated a huge and purposeful settlement policy to take over the West Bank. In the process, the Jewish settler population soared from a few thousands to over half a million in the West Bank prior to October 7, 2023.

Source: Israeli CBS

In parallel, Israeli governments have encouraged increasing Jewish settlement in Jerusalem. Since 1967, it has more than tripled to 600,000, whereas the number of Palestinians is close to 390,000. The tacit objective has been to maximize the number of Jewish settlers in the West Bank, while increasing the Jewish population in Arab East Jerusalem.

Settler violence   

Following the rise of Netanyahu’s far-right cabinet in late 2022, the efforts to achieve Jewish supremacy in the West Bank have escalated dramatically. Taking advantage of the Gaza War, groups of violent settlers have carried out organized operations to expel Palestinian communities, through threats, intimidation, property damage, and physical assaults.

Settler Violence Incidents

Settler Violence Incidents
Source: Author, data from OCHA (Jan 2006- Oct 2025)

Until recently, Israeli and international media have characterized instances of settler violence as “rampages,” which suggests violent but uncontrollable behavior, involving a large group of people. In reality, the violence has been systemic and coordinated.

After the settler violence in Huwara in February 2023, Maj. Gen. Yehuda Fuchs, head of the military’s Central Command in charge of the West Bank, described the rampage as “a pogrom done by outlaws.” He deliberately used the term referring to mob attacks against Jews in Eastern Europe at the turn of the 20th century. As a result, Fuchs himself was targeted for assassination by Kahanite settlers, according to Shin Bet. It wasn’t the first time. In 2007, then-prime minister Ehud Olmert lashed out at settlers in Hebron, who attacked Palestinians and their property. Like some other Israeli leaders, Olmert called the attacks a pogrom, which made him the target of far-right settlers, supported by U.S. billionaires like the late casino tycoon, Sheldon Adelson.

Referring to antisemitic violence in Russia, the term “pogrom” is usually defined as an officially tolerated organized massacre. In this sense, the pogroms by the Jewish settlers in the West Bank are indeed reminiscent of those in Kishinev and elsewhere, as many Israelis suggest.

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Today, Palestinians know exactly what will follow when Jewish settlers burst into Arab neighborhoods crying for the “Death to the Arabs!”

Settlements as a Security Burden   

Ever since the 1970s, the settlers and their U.S. financiers have argued that the settlements ensure Israel’s security. In this view, settlers allow the residents of Tel Aviv to breathe easy because the settlements are good for national security.

The line of defense that the Israeli Defense Force (IDF) is required to protect is today about five times the length it would be without the settlements.

In reality, the settlements are a security burden for Israel. ln the past decades, there have been no major war between Israel and its Arab neighbors. Yet, due to the Separation Wall and fragmentation of the West Bank, the line of defense that the Israeli Defense Force (IDF) is required to protect is today about five times the length it would be without the settlements.

Stunningly, before October 7, the IDF had to deploy more than half its active forces, and in crisis situations even two-thirds of them, in the West Bank. That was more than the forces allocated to guarding all other fronts combined (Lebanon, Syria, Gaza, and the Jordanian border along the Arava).

Worse, these allocations had to be coupled with a large contingent required to protect the settlements. According to estimates, some 80 percent of IDF forces in the West Bank were allocated to settlement guard duty, while the only 20 percent focused on defending the borders of the pre-1967 Israel.

Furthermore, the IDF presence and operations have contributed to several major uprisings, which penalized economic prospects in Israel as well. If Israeli military presence in southern Lebanon was the architect of Hezbollah, its presence in the West Bank and Gaza has served as the midwife of Hamas.

The brutal occupation has divided Israel internally and isolated it externally. It is responsible for the ethnic cleansing of Palestinians and the genocidal atrocities in Gaza. None of this was inevitable. None of it was warranted.

And none of it could have happened without the continuous flows of arms and financing by the U.S.-led West.

A version of the commentary was published by Informed Comment (US) on November 15, 2025.

About the Author 

Dr Dan SteinbockThe author of The Obliteration Doctrine (2025) and The Fall of Israel (2024), Dr Dan Steinbock, an expert of the multipolar world, is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net/  For the books and related commentaries, see https://www.differencegroup.net/new-books

Creative Ideas for Teen Bedroom Walls

Bedroom Wall
Image from Costa Cover

Designing a teen bedroom can be both exciting and challenging. Teenagers often want their personal space to reflect their evolving tastes, hobbies, and identity, while parents look for functionality and longevity. Cute wallpapers for teens provide the perfect balance – offering personality, color, and versatility without permanent commitment. From playful patterns to stylish graphics, these wallpapers allow teens to express themselves and transform their rooms into inspiring, comfortable spaces. 

Why Wallpaper Matters in a Teen Room

Teen bedrooms are more than just sleeping areas-they are study zones, creative studios, social hubs, and safe havens. Walls that are lively, expressive, and visually engaging can enhance the mood, encourage creativity, and create a sense of ownership for the teen. Cute wallpapers, in particular, bring color, fun, and personality to these spaces. Patterns like stars, florals, whimsical animals, or modern graphics can make a bedroom feel vibrant without overwhelming the senses.

Bedroom Wall
Image from Costa Cover

Theme-Based Inspiration

Choosing a theme is an effective way to create cohesion in a teen bedroom. Some popular ideas in 2025 include:

  • Nature-Inspired Walls: Soft floral, leafy, or sky motifs bring calm and freshness to a room. These designs work well for both study areas and relaxation corners.
  • Pop Culture & Hobbies: Wallpapers reflecting music, movies, gaming, or sports let teens showcase their interests while keeping the room stylish.
  • Abstract & Geometric Patterns: Bold shapes and color blocks provide energy and modern flair, suitable for teens who prefer contemporary aesthetics.
  • Pastel & Soft Tones: Gentle pinks, blues, or lavender hues paired with subtle patterns create a cozy, soothing environment for sleep and study.
Bedroom Wall
Image from Costa Cover

Creative Layouts and Wall Ideas

Wallpaper doesn’t need to cover every wall. Mixing and matching different techniques can make a space feel dynamic:

  1. Accent Walls: Highlight one wall behind the bed or desk with a bold wallpaper to create a focal point.
  2. Half-Wall Design: Apply wallpaper to the lower half of the wall and paint the upper half, providing balance and flexibility.
  3. Murals & Feature Zones: Use murals for gaming corners, study nooks, or reading areas to visually define sections of the room.
  4. Mixing Patterns: Combine different wallpapers for a playful, eclectic look-just ensure color tones complement each other.

Functional Considerations

While aesthetics are important, teen bedrooms also need to be practical. Removable wallpapers, like peel-and-stick options, are ideal for growing teens whose tastes change rapidly. Durable, washable surfaces make it easier to maintain a clean and inviting space. Light-reflecting finishes can help brighten darker rooms, while textured patterns add dimension without requiring extra decor.

Bedroom Wall
Image from Costa Cover

Personalization Tips

Encouraging teens to participate in the design process ensures their personality shines through. Add shelves to display favorite books or collectibles, pinboards for personal achievements, and artwork that complements the wallpaper’s design. Layering textiles-like rugs, cushions, and bedding – can enhance the room’s atmosphere while keeping it cozy and functional.

Creating a Room That Evolves

Teenagers’ tastes evolve quickly, and their room should evolve with them. Choosing cute wallpapers allows for an easy update when preferences change, offering flexibility and long-term value. With creative combinations, thoughtful layouts, and personalized accents, teen bedrooms can remain engaging, comfortable, and reflective of their unique identity throughout the years.

For a wide range of designs and inspiration to transform teen bedrooms into fun, expressive, and stylish spaces, visit CostaCover and explore the full collection of wallpapers for teens.

The photos in the article are provided by the company(s) mentioned in the article and are used with permission. 

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