What the West is Missing About China

October 20, 2025

The West still treats China as a monolith. As an intercultural communication scholar, I explain how misreading high‑context communication, neglecting concepts like face and guanxi, and overlooking generational change perpetuate misconceptions. To build real partnerships, we must develop cultural literacy, humility and a long‑term view of Chinese society.

The Unseen Costs of Cultural Misunderstanding

As someone who works daily with UK entrepreneurs and executives navigating China, I’m struck by how often our own assumptions get in the way. China isn’t just a distant powerhouse; it’s our fifth-largest trading partner, with bilateral trade reaching £111 billion in 2022. Yet, research by UK Trade & Investment suggests cultural misunderstandings and poor communication cost our economy around £48 billion a year. Many British businesspeople still expect Chinese colleagues to act like Westerners: they want clear answers, quick decisions, and respect delivered as direct feedback. Those expectations are misplaced and can derail partnerships before they begin.

The Art of Reading Between the Lines

One of the first lessons I teach is that communication is contextual. In the UK, we value straightforwardness; we say what we mean and expect others to do the same. In China, messages are often conveyed indirectly through tone, body language, and what is left unsaid. The China-Britain Business Council reminds British managers that Chinese colleagues often hide discomfort behind courtesy, and that effective engagement requires the skill of “reading between the lines.” A phrase like “we will consider it” may be a polite refusal. Cross-cultural training, role-playing, and learning non-verbal cues can help British teams avoid costly misinterpretation.

Relationships, Not Just Contracts

A second blind spot concerns two interlinked concepts: face and guanxi. Face, or mianzi, is a person’s dignity and social reputation; causing someone to lose face by publicly correcting them or sending junior staff to meet senior executives can destroy a relationship. Guanxi refers to the web of reciprocal relationships through which business is conducted; it combines trust, obligation, and respect. A CBBC case study on creative collaborations stresses that building guanxi is “by far the most important step” for UK firms in China. This means showing your face regularly and having a trusted local guide. Instead of rushing to contracts, share meals, attend cultural events, and invest time in relationships. Such rituals might seem peripheral to Western deal-makers, but they are the foundation of long-term partnerships.

Navigating Hierarchical Workplaces

A third difference lies in working styles and hierarchy. UK companies pride themselves on flat structures and quick, collaborative decision-making. Chinese organizations tend to be more hierarchical; deference to seniors is expected, and decisions may require consensus from multiple layers. The China-Britain Business Council urges British managers to be patient and adaptable, recognizing that showing respect for hierarchy and the collective decision-making process can prevent frustration. In practical terms, that means matching seniority in your delegations, allowing time for consultation, and avoiding public pressure for immediate answers. Aligning your approach with Chinese hierarchies shows you take the relationship seriously.

Beyond the Monolith: Generational Nuance

It’s equally important to recognize generational and regional diversity within China. Older partners, especially those who grew up before the reforms of the 1990s, often rely heavily on guanxi networks and are sensitive to matters of face. Younger, urban professionals, however, have been shaped by market reforms, international education, and the internet. The US-China Business Council notes that they rely more on formal qualifications and head-hunters than personal connections, and they are less concerned about saving face. They may prefer clear feedback and digital communication. I encourage UK businesses to tailor their approach accordingly. Treating China as a monolithic entity is both inaccurate and unproductive.

Harmony Over Confrontation

A final cultural difference involves the way conflict and communication are handled. Westerners often view debate and confrontation as catalysts for innovation. Chinese culture values harmony and seeks to resolve disagreements quietly. Research in psychology notes that Western scholarship focuses more on conflict than on harmony, whereas Chinese researchers emphasize balancing opposites. In business, this means a Chinese partner may avoid saying “no” outright and may choose to solve problems in private. The character for “listen” in Chinese combines the radicals for ear, eye, and heart, reminding us to listen beyond words. During negotiations, allow for silence; watch for hesitation and subtle signals; and avoid public criticism. When we respond with patience and empathy, we honour our partners’ dignity and invite deeper collaboration.

The Path to True Partnership

The West’s misunderstanding of China stems not from a lack of information but from a lack of context. To succeed, British businesses must look beyond economic headlines to the human and cultural fabric that underpins Chinese society. Investing in cultural literacy, learning some Mandarin, studying Chinese history, and engaging with mentors who have lived experience are not optional extras but essential forms of due diligence. As I remind my students and clients, entering China is not about quick wins; it is about building relationships with patience, humility, and mutual benefit. Only by listening with our ears, eyes, and heart can we turn opportunity into partnership.

Go to top

About the Author

Dr Catherine Hua Xiang is Director of the Confucius Institute for Business London and Programme Director for International Relations and Chinese at the London School of Economics. She is the author of Bridging the Gap: An Introduction to Intercultural Communication with China (LID Publishing, £12.99), winner of the Specialist Business Book Award at The Business Book Awards 2025.

Americans Rally Nationwide in “No Kings” Protests Against Trump

October 20, 2025

Thousands of Americans gathered across the country on Saturday for the “No Kings” demonstrations, protesting what they view as President Donald Trump’s growing consolidation of power and the state of U.S. democracy under his administration.

From Washington, D.C., to small towns across the nation, crowds waved signs reading “Nothing is more patriotic than protesting” and “Resist Fascism.” Many rallies took on a festive atmosphere, featuring marching bands, inflatable costumes, and a massive “We The People” banner that demonstrators signed in support of democratic values.

The protests, which organizers said included more than 2,600 rallies nationwide, marked the third major mobilization since Trump’s return to the White House. They came amid a government shutdown that has shuttered federal programs and intensified tensions between the president, Congress, and the courts.

Speaking from Mar-a-Lago, Trump dismissed the movement’s central claim. “They say they’re referring to me as a king. I’m not a king,” he told Fox News before heading to a high-profile fundraiser. Later that evening, one of his campaign social media accounts mocked the rallies by posting a digitally altered video of Trump dressed as royalty, waving from a palace balcony.

In Washington, demonstrators filled the National Mall, joined by politicians, activists, and citizens who said they were alarmed by what they see as authoritarian tendencies in the administration. “This is America. I disagree with their politics, but I don’t believe that they don’t love this country,” said Brian Reymann, who carried a large American flag. “I believe they are misguided. I think they are power-hungry.”

Major demonstrations were also reported in New York’s Times Square, Chicago’s Grant Park, and Boston Common. In Birmingham, Alabama—known for its pivotal role in the Civil Rights Movement—more than 1,500 people gathered. “It just feels like we’re living in an America that I don’t recognize,” said Jessica Yother, a mother of four. “I walked in and thought, ‘Here are my people.’”

In San Francisco, hundreds formed the words “No Kings” on Ocean Beach with their bodies, while protesters in Salt Lake City called for unity and peace following the death of a demonstrator at a previous march in June.

Democratic lawmakers joined the demonstrations, portraying them as a defense of American values. “Big rallies like this give confidence to people who have been sitting on the sidelines but are ready to speak up,” said Senator Chris Murphy. Addressing the crowd in Washington, Senator Bernie Sanders said the nation’s democratic experiment was “in danger” under Trump but emphasized that “We the people will rule.”

Republican leaders, however, condemned the events, branding them “Hate America” rallies. House Speaker Mike Johnson criticized the protesters as “communists” and “Marxists,” accusing Democrats of catering to extremist factions amid the ongoing shutdown. “Let’s see who shows up for that,” Johnson said, suggesting that the demonstrations reflected anti-capitalist sentiment rather than patriotism.

Many participants responded with humor to such attacks. “So much of what we’ve seen from this administration has been so unserious and silly that we have to respond with the same energy,” said Washington protester Glen Kalbaugh, who wore a wizard hat and carried a frog-shaped sign. New York City police reported no arrests during the day’s events.

The protests also highlighted a shifting political mood. Democrats, criticized earlier this year for being disorganized and hesitant, appeared more unified as they resisted Republican demands to reopen the government without guarantees on healthcare funding. “What we are seeing from the Democrats is some spine,” said Ezra Levin, co-founder of the organizing network Indivisible. “The worst thing the Democrats could do right now is surrender.”

As the shutdown stretches into its third week, the “No Kings” rallies underscore the growing divide over Trump’s leadership and the limits of executive power. For organizers and participants, the demonstrations were about more than politics—they were, as one sign read, “a declaration that democracy still belongs to the people.”

Related Readings:

Nepal’s Gen Z Protests Topple Prime Minister Amid Deadly Unrest

Trump Threatens Deep Cuts as Government Shutdown Continues

Protesters Rally Nationwide Against Trump as Military Parade Draws Criticism

Go to top

Israeli Scramble for Gaza’s Gas Reserves: The Quest for Gaza’s Energy

October 20, 2025

By Dan Steinbock

For 25 years, Israel’s Gaza policies have been motivated not just by security concerns, but by efforts to exploit the Palestinians’ energy reserves. With the ceasefire, these attempts are rapidly escalating.

As the Second Intifada was about to begin in September 2000, PLO leader Yassir Arafat celebrated a natural gas discovery in a fishing vessel about 30 kilometers off the Gaza Strip. “This will provide a solid foundation for our economy, for establishing an independent state with holy Jerusalem as its capital,” Arafat said.

Efforts to undermine this hope that could have done much to foster the Gazan economy have gone in tandem with the crumbling of the peace process.

Gaza catastrophe is (also? mainly?) about natural gas

Ever since the late 1990s, the Eastern Mediterranean has become highly attractive to energy interests, with major fields like Israel’s Leviathan (600 billion cubic meters, bcm), Egypt’s Zohr (850 bcm), and the Gaza Marine field (28–30 bcm).

Efforts to undermine this hope that could have done much to foster the Gazan economy have gone in tandem with the crumbling of the peace process.

Relative to Israel’s Leviathan, which generates $10 billion annually in export revenue, or Egypt’s Zohr field, which meets 40% of Egypt’s gas demand, the Gaza Marine field has lower output. However, it could have a transformative impact on Gaza’s economy and Palestinian living standards.

Located 30 km offshore from the Strip, the Gaza Marine field was discovered in 2000 by British BG and the Palestinian Consolidated Contractors Company (CCC). It was expected to develop revenue at $4 billion.

Let’s put things into context: In 2023, Gaza’s GDP amounted to less than $18 billion. And today, after Israeli decimation, it is barely $350 million. So the field represents a lifeline to Gazans and a great opportunity to overcome chronic energy shortages in Gaza, which remains highly dependent on foreign aid.

With its natural gas industry, Egypt was to serve as the onshore hub and transit point for the gas. The British BG Group was to finance the development and operations in return for 90 percent of the revenues. The Palestinian Authority (PA) would receive just 10 percent, plus access to adequate gas to meet their needs.

Israel’s cut

It was a colonial-style “profit-sharing” deal. But Israel, too, wanted a cut. In 1999, PM Ehud Barak deployed the Israeli navy in Gaza’s waters to impede the PA-BG deal. Israel demanded the gas to be piped to its facilities at a below-market-level price and control of the revenues fated for Palestinians, ostensibly to prevent the monies from being used to “fund terror.”

In 2005, when Israeli PM Ariel Sharon was focused on “disengagement” from Gaza, BG signed a memo with the EGAS (Egyptian Natural Gas Holding Company) to sell the gas there. But that deal was subsequently foiled, when British PM Tony Blair intervened at the last minute to plead the Israeli government’s case to BG, allegedly following a request from Ehud Olmert, Sharon’s successor as PM.

In the new deal structure, the gas would be delivered to Israel, not Egypt, and the funds would first be channeled to the Federal Reserve Bank in New York for future distribution, ostensibly to preempt “financing of terrorist attacks.”

Unsurprisingly, BG was a major client of JP Morgan, the US financial giant that subsequently paid Blair millions of dollars as a senior adviser. (That’s why Blair is now back in Gaza where he senses even bigger opportunities.)

These ploys killed the prospects for a limited Palestinian budget autonomy and the Oslo Accords, while a path was paved for new wars, which would then be blamed on the Palestinians. When the Hamas-led Palestinian unity government refused the impossible offer, Israeli PM Ehud Olmert imposed a blockade on Gaza. The economic warfare was hoped to lead to a political crisis and an uprising against Hamas.

Gaza’s offshore gas reserves

The 2008-2009 War did cause devastation in Gaza but failed to transfer the control of the gas fields to Israel. So, as the West was swept by the financial crisis of 2008, the Netanyahu government found itself also struggling with an energy crisis.

Amid the Arab Spring in the region, Israel lost 40% of its gas supplies and was hit by soaring energy prices, which triggered the 2011 cost-of-living mass protests in Israel, the largest in decades. By the same token, the domestic turmoil gave Netanyahu cabinets a compelling motive to seek energy sovereignty in Gaza.

Cost-of-living protest in Tel Aviv in August 2011 (1) — *Cost-of-living protest in Tel Aviv in August 2011*
*Source: Wikipedia*

Ironically, Netanyahu’s government was saved by the discovery of a huge field of recoverable natural gas in the Levantine Basin. The Tamar and Leviathan fields were manna from heaven to Netanyahu. However, Israel claimed “most” of the newly confirmed gas reserves lay within its territory, which led to increasing tensions with Lebanon, Syria, Cyprus, and the Palestinians.

To ease tensions, the U.S. pioneered its “gas diplomacy,” hoping to use the region’s new energy wealth to bring countries in conflict back to the negotiating table.

*Levantine Basin gas and oil*
Source: SEG-Wiki

But even before October 7, the gas diplomacy visions proved inflated. Though discovered years before Israel’s Tamar and Leviathan, the offshore Gaza Marine gas field “remains inaccessible due to Israeli restrictions, and thus offers no relief to the people in Gaza suffering under a stifling Israeli siege.”

In theory, the timing was favorable, due to the high energy prices and Europe’s need to diversify gas resources. Yet, the Levantine gas ecosystem lacked pipelines out of the sub-region, remained dependent on limited gas liquefaction capabilities in Egypt. So, progress was frustratingly slow.

In addition to energy discoveries, there was still more at stake: an alternative distribution canal that ran right next to Gaza – in Israel.

An Israeli alternative to the Suez Canal

Some 12 percent of the world’s trade passes through the Suez Canal, which connects the Red Sea and the Gulf of Suez with the Mediterranean Sea. That translates to $9.4 billion in annual revenues to Egypt. But the traffic hasn’t always been smooth.

In March 2021, the Canal was blocked for six days by a container ship that had run aground. The closure required oil tankers to divert around the Cape of Good Hope near the southern tip of Africa, adding over 4,000 kilometers to the transit from Saudi Arabia to the United States.

Today, the Suez Canal is operational, but traffic remains significantly lower than normal due to the Red Sea crisis and related security concerns. And so it was that amid the Gaza War, media buzz intensified about an Israeli canal initiative. But it wasn’t a new idea.

In the ancient era, there were a number of famous routes passing through the Negev desert. The city of Eilat functioned as a key port during the reign of Solomon, as the trading point with Africa and the Orient.

In the mid-19^th century, British Rear-Admiral William Allen had championed construction of a canal between the Mediterranean and the Red Sea, as an alternative to the proposed Suez Canal. But as Allen failed to rally the powers-to-be behind his dream plan, the Suez Canal was built. It reduced the journey from London to the Arabian Sea by some 8,900 kilometers.

Yet, the dream of an alternative to the Suez Canal retained its position in the early Zionist visions. In his novel The Old-New Land (1902), Theodor Herzl, the father of political Zionism, saw the Jewish land as a nodal point between two massive regional blocs and envisioned a future when “traffic between Europe and Asia had taken a new route – via Palestine.”

It was this idea that PM Netanyahu was alluding to with his map of the “new Middle East” in the UN General Assembly just two weeks before the Hamas offensive of October 7, 2023. With Palestine and Palestinians effectively erased from the map, the debacle caused an international firestorm. Yet, just two years later, some 90 percent of Gaza has been destroyed and the West Bank is haunted almost daily by violent pogroms.

The plan of 520 two-megaton nuclear explosions

In the 1950s, Israel had a deep-water port constructed at Eilat, while a modern port was built on the southern coast of the Mediterranean at Ashdod, just 60 kilometers from the Gaza border.

The Levantine gas ecosystem lacked pipelines out of the sub-region, remained dependent on limited gas liquefaction capabilities in Egypt.

In the 1960s, the Suez Canal had also become vital to U.S. interests, as evidenced by a plan of the Lawrence Livermore Laboratory (LLL) that was declassified only at the end of the Cold War. One proposed project built on a memorandum by H.D. MacCabee, advocating the use of 520 2-megaton nuclear explosions to excavate a canal through the Negev Desert.

In 1970, the Israeli shipping line ZIM set up a subsidiary to provide service for cargoes transported cross-country between Ashdod and Eilat, while construction started on a 42-inch oil pipeline through Negev from Eilat to Ashkelon, just 12 kilometers from the Gaza Strip.

These visions leaped ahead in October 2020, when the Israeli state-owned Europe Asia Pipeline Company (EAPC) and the UAE-based MED-RED Land Bridge inked a deal to use the Eilat-Ashkelon pipeline to move oil from the Red Sea to the Mediterranean; just 1 month after the Abraham Accords.

*The Ben Gurion Canal Project*
*Source: Wikimedia*

In April 2021, Israel announced that the Ben Gurion Canal would connect to the Mediterranean Sea by getting around the Gaza Strip. Unlike the Suez Canal, the Israeli dual-canal would handle ships going in both directions. It would be almost one-third longer than the 193 km Suez Canal.

The costs of the 5-year project would amount to $16-$55 billion. The canal was projected to generate $6 billion or more in annual income.

Obviously, whoever controls the proposed canal would have enormous economic influence (and political leverage) over the global supply routes for commodities shipping.

Before October 7, the only thing that stood between the Netanyahu government and the massive canal project was a Palestinian Gaza and Hamas. The challenge was to get rid of both.

The original version of this series of commentaries was published by the Informed Comment (US) in two parts on October 16 and 17, 2025.

Go to top

About the Author

Dr Dan Steinbock The author of The Obliteration Doctrine (2025) and The Fall of Israel (2024), Dr Dan Steinbock, a visionary 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/

How to Rebalance Your Budget When Insurance Premiums Go Up

October 20, 2025

Even the best thought-out household budget can be broken in seconds by an increase in insurance premiums. It may be health, home, or car insurance and in all these cases, they tend to increase with market trends, inflation or alterations in the calculation of risks. To a variety of households, these increases might force reevaluation of financial priorities to keep necessary protections and shun avoidable financial tension.

Increase in the premiums could also prompt an immediate urge to quit or reduce the coverage. Nevertheless, this may have dangerous long-term risks. Rather, it is better to go through the budget and make amendments cautiously that will not cause a lack of some coverage. Through informed financial adjustments, it can be absorbed to pay more without losing critical security of your home, vehicle or health.

Assessing the Current Financial Situation

The initial thing you need to do when you are rebalancing your budget when a premium goes up is to determine your current financial situation. An overview of income, expenses, and debt obligations can be used to determine the areas where it can be flexible and decrease spending. Many people can realize that after a couple of weeks of tracking their monthly expenses, they can identify unnecessary costs that can be changed or removed.

Discretionary expenses and essential expenses also should be separated. House, food, and insurance cover can be defined as necessities, whereas entertainment or eating out can be considered nonessential. The knowledge of these categories is important in making decisions about what one needs to change and making sure that key safeguards, like auto insurance, are not compromised.

Exploring Options to Reduce Insurance Costs

The insurance itself is worth reevaluating before other budget cuts. A simple phone call to your provider to inquire about any available discounts, policy bundling, or deductible changes can have a tendency to make your pay less. An example is that since the home insurance and car insurance are available together with the same company, asking to be given a discount on both is possible without significant protection loss.

A second helpful thing to do is to compare quotes of several insurers. The insurance companies tend to vary in adjusting their rates and a more competitive insurer can provide a better package according to the same coverage. Even a small change (a decrease in the monthly payments of the premium) can be felt in the long run and can also re-adjust your financial plan without necessarily having to do away with obligatory policies.

Adjusting Nonessential Spending

When the adjustments made on the insurance are not able to counter the higher cost completely, then we may need to consider discretionary spending. Reduction in luxury or subscriptions or lowered frequency of entertainment can release funds to meet the increased premiums. Such downsizing might only be required to be short term before revenues grow or costs level off.

In making these adjustments, aim at ensuring lifestyle satisfaction in a moderate manner. As an illustration, rather than abolishing social outings, think about other more affordable options. This will enable you to maintain social wellness and at the same time set aside money to make sure that the necessary covers like car insurance are affordable.

Reviewing and Refining Debt Management

The debt repayment plans may also affect the capacity to reorganize your budget. Debt incurred at high interest rates e.g. credit cards can absorb a big portion of monthly earnings. Trading in or refinancing the debt at a cheaper rate will help to lower the monthly payments and also release the money that could be used to pay higher insurance premiums at a much easier rate.

It is prudent not to enter into new debts at this time of financial adjustment as well. Even the basic purchases that are made using credit will build up monthly payments, and it will be more difficult to afford the coverage. Being disciplined in terms of debt management grants the long term financial stability and allows the management of special needs such as auto insurance not to be a burden.

Building a Sustainable Budget for the Future

Once preliminary changes are made, it is worthwhile to establish a long term budget that takes into consideration the potential future rise in expenses. To counter the price increases in the future, it is better to allocate a small amount of income every single month to a contingency fund without affecting the necessary financial obligations. This active strategy provides stability even in the case of changes in the market conditions.

It is always good to review the budget every quarter or so to make sure that the expenditure is in tandem with priorities and the financial realities on the ground. Insurance premiums are not the only costs that are subject to change with time and a flexible budget can securely handle these changes. Financial balance is a continuous process that is good to be looked into and readjusted periodically.

Maintaining Key Protections While Staying Financially Secure

Necessity to rebalance a budget when the insurance costs increase does not necessarily imply the loss of critical coverage. Careful planning can absorb the increases, and at the same time maintain financial control. It is all about keeping up with the times and checking all possibilities as well as making minor but effective changes in spending.

Insurance is some form of insurance against the unpredictable loss and it is crucial to keep it so that there is security in the long term. Households may defend what is important to them without going into a state of financial distress by approaching the changes in their budgets with a slow and careful approach. A balanced plan will make sure that the current stability and future protection is affordable even in case of an increment in the premiums.

Go to top

Gen AI Can Change Work Forever—If You Build the Right Gen AI Portal

October 20, 2025

Employee using generative in the workplace

By Dr. Gleb Tsipursky

The integration of Generative AI (Gen AI) into the workplace is a game-changer, offering transformative potential for efficiency and innovation. Yet, with this potential comes uncertainty, as employees may feel unprepared or apprehensive about the implications of this technology on their roles. To address these challenges, forward-thinking organizations are creating internal Gen AI portals—a centralized resource hub that provides employees with the knowledge and tools they need to thrive in this evolving environment. By offering clear, accessible, and interactive learning opportunities, these portals not only demystify Gen AI but also empower employees to see it as an opportunity rather than a threat.

The Importance of a Centralized Gen AI Portal

The introduction of Gen AI into the workplace marks a significant shift in how tasks are performed and decisions are made. While leadership may focus on its potential to drive business outcomes, employees often focus on what it means for their day-to-day work and career prospects. A centralized Gen AI portal addresses these concerns by serving as a trusted source of information, fostering transparency, and guiding employees through the changes.

While leadership may focus on its potential to drive business outcomes, employees often focus on what it means for their day-to-day work and career prospects.

According to research from McKinsey, organizations that prioritize upskilling during technological shifts like the Gen AI paradigm shift are significantly more likely to achieve their digital transformation goals. A Gen AI portal supports this by providing a space where employees can learn at their own pace and gain the confidence needed to leverage new tools effectively.

Beyond education, a well-designed portal also alleviates fear by addressing misconceptions about Gen AI. Employees often worry that automation and advanced technologies will replace their roles entirely. By offering clear information about the technology’s purpose—augmenting human capabilities rather than replacing them—companies can foster a more optimistic mindset among their workforce.

Core Features of a Gen AI Portal

For an internal Gen AI portal to meet its objectives, it must be thoughtfully designed to cater to the diverse needs of the workforce.

1. Educational Resources

The portal should offer a variety of materials to accommodate different learning styles and levels of expertise. Examples include:

Introductory Guides: Written explanations of Gen AI concepts, including its benefits and practical applications.
Video Tutorials: Visual demonstrations that simplify complex topics, such as using specific Gen AI tools.
Interactive Modules: Quizzes, gamified lessons, and self-paced courses to engage employees actively.

2. FAQ Section

A comprehensive FAQ section is crucial for addressing common concerns and misconceptions, and facilitating risk management. Questions might include:

How will Gen AI affect my role?
What skills do I need to stay competitive?
Are there ethical concerns with using Gen AI at work?

Regular updates to the FAQ ensure it stays relevant and reflects employees’ evolving needs. Research from Deloitte highlights that frequent communication and transparency are essential for building trust.

3. Feedback and Interaction

The portal should be a two-way communication tool, allowing employees to submit questions or suggest topics for future resources. This not only keeps the portal dynamic but also reinforces the organization’s commitment to employee involvement.

4. Accessibility and Security

Ensuring the portal is user-friendly and accessible across devices is critical. Features like single sign-on (SSO) integration and a responsive design make it easy for employees to use the portal from anywhere. At the same time, robust security measures are essential to protect sensitive organizational information.

Case Study: Implementing a Gen AI Portal in a Nonprofit Organization

A nonprofit organization focused on environmental advocacy recently faced challenges when adopting Generative AI (Gen AI) to streamline operations and enhance community engagement. The leadership team believed that Gen AI tools could optimize donor communications, automate administrative tasks, and improve data analysis for impact reporting. However, employees expressed concerns about their roles, fearing that automation might reduce the need for human input, especially in areas like grant writing and outreach. The nonprofit hired me to help them address this challenge.

Through employee surveys and small focus groups, we identified several concerns:

A lack of clarity on how Gen AI would be integrated into their daily work.
Anxiety about job security, particularly in roles involving repetitive tasks.
Limited understanding of how to use Gen AI tools effectively to complement their current skills.

I collaborated with the nonprofit to design an internal Gen AI portal that addressed these concerns while aligning with the organization’s mission and values.

Learning Resources Tailored to Nonprofits:
We created specific learning modules, including video tutorials and guides, demonstrating how Gen AI could assist with donor segmentation, crafting personalized outreach emails, and automating volunteer scheduling.
Interactive FAQ Section:
Employees were encouraged to submit questions anonymously, which were addressed in a dedicated FAQ section. Topics included, Will Gen AI replace my job? and How can I use Gen AI to enhance grant writing?
Ethical Guidelines Module:
Given the nonprofit’s focus on social impact, we included a section on using Gen AI responsibly. This module outlined ethical considerations, such as avoiding biases in automated content and ensuring transparency with stakeholders.
Feedback Loop for Continuous Improvement:
A portal feature allowed employees to suggest new resources or flag unclear content, ensuring the platform remained dynamic and responsive to their needs.

To encourage portal usage, we launched it alongside a live webinar that demonstrated its features and addressed employee concerns in real time. A follow-up email campaign highlighted key resources and celebrated early adopters who shared their success stories.

Within six months of the portal’s launch:

Over 80% of employees reported improved confidence in using Gen AI tools.
The organization reduced the time spent on administrative tasks by 35%, allowing staff to focus more on mission-driven activities, as well as fundraising.
Employee feedback indicated a 50% drop in anxiety about Gen AI, as they began to see the technology as a collaborator rather than a replacement.

This initiative not only eased the transition to Gen AI but also strengthened the nonprofit’s ability to deliver on its mission, demonstrating how tailored resources can empower employees in even the most purpose-driven organizations.

The Broader Implications for Workforce Transformation

Employees who feel supported and informed are more likely to embrace new tools and even suggest novel applications for them.

Creating an internal Gen AI portal isn’t just about addressing immediate concerns—it’s about fostering a culture of innovation and continuous learning. Employees who feel supported and informed are more likely to embrace new tools and even suggest novel applications for them. This engagement can drive both individual and organizational growth.

Furthermore, a Gen AI portal signals to employees that the organization values transparency and development. In a competitive job market, this can be a significant factor in attracting and retaining top talent. A study by LinkedIn Learning found that opportunities for upskilling and reskilling are among the top drivers of employee satisfaction.

Conclusion

The integration of Gen AI into the workplace is inevitable, but the success of this transformation depends on how well employees are supported during the transition. An internal Gen AI portal, with its comprehensive resources and interactive features, is an effective way to empower employees, address their concerns, and foster a sense of collaboration.

As demonstrated in the case study, such a portal can turn apprehension into engagement, helping organizations unlock the full potential of Gen AI. By investing in education and transparency, companies can build a workforce that is not only prepared for the future but excited to shape it.

Go to top

About the Author

Dr. 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 Review, Inc. Magazine, USA Today, CBS News, Fox News, Time, Business Insider, Fortune, The 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 consulting, coaching, 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.

ESG in Action: Africa’s Private Sector Leading Inclusion

October 19, 2025

Portrait of multicultural ecology engineer standing with solar panels model in hands at boardroom and having seminar about clean and renewable energy development in front of diverse team of experts.

By Christopher Burke

Africa’s private sector is embedding ESG into core business models, driving inclusion of youth and women as engines of growth. Programs such as Stanbic’s incubator, Unilever’s Shakti and Samsung’s Innovation Campus present ESG as strategy, not compliance; fostering skills, resilience and market access while reshaping Africa’s economic transformation.

Africa stands at a pivotal crossroads. Half the population on the continent is under 25 years of age and women account for over half of the potential workforce. This demographic profile represents both opportunities and challenges. Without targeted efforts to expand access to economic development, especially for youth and women, Africa risks falling short of its growth potential.

As public sector resources tighten and donor priorities shift, private sector players are beginning to fill a critical gap using environmental, social and governance (ESG) principles not just for compliance, but as a roadmap to inclusive business. Compliance can no longer be treated as an administrative afterthought; it must be recognized as a core strategic driver of business success according to Steven De Backer Founder and CEO of Afriwise, an African governance and legal advisory firm. Examples across the continent suggest the private sector is no longer treating ESG as a compliance checklist, but a practical framework for action embedded in business models, supply chains and workforce development.

A growing number of promising initiatives recognize youth and women as central to market growth, innovation and resilience rather than side beneficiaries. The scale of transformation required across African economies highlights the urgent need for sustained capacity building, especially in technical skills including digital fluency and enterprise management. Enhancing capacity is a cornerstone of development to enable governments to craft and execute effective strategies and empower society–including the private sector–to support, engage, manage and hold institutions accountable.

The Stanbic Bank Business Incubator in Uganda is indicative of the broader transformation. Launched in 2018, the initiative has since supported more than 11,400 entrepreneurs and over 5,700 enterprises in sectors ranging from agro-processing and clean energy to logistics and oil and gas. Over 4,000 of its beneficiaries have been women. On average, each supported business created seven new jobs, contributing significantly to employment generation and livelihood improvement. “We see ourselves as more than just trainers,” says Catherine Poran, Chief Executive of the Stanbic Business Incubator. “We link SMEs to market opportunities, help them understand and unpack these opportunities and bring them into the market so they can see where the real growth lies.”

The model addresses three persistent challenges faced by entrepreneurs across Africa: 1) the need for practical business skills, 2) the challenges accessing capital and 3) limited engagement with formal markets. The business incubator is helping to formalize businesses, connect them with procurement opportunities and build long-term resilience through mentorship programs, tailored business support and partnerships with institutions such as the Uganda Registration Services Bureau (URSB) and Uganda Revenue Authority (URA).

This practical, problem-solving approach is echoed across sectors and regions. Total Energies is embedding youth training directly into its energy infrastructure projects in Mozambique and Uganda. In Mozambique, vocational programs developed with local partners are training 2,500 youth to transition into skilled employment. The company has supported training for welders, pipeline technicians and environmental officers in the oil-producing Albertine region of Western Uganda. These initiatives are tied to local content requirements, but reflect a longer-term investment in community stability and operational continuity.

Unilever’s “Shakti” program in Kenya and Nigeria supports rural women to become micro-distributors of household products, boosting incomes and expanding rural supply chains. Unilever also participates in the TRANSFORM initiative in cooperation with the UK’s Foreign, Commonwealth and Development Office, and EY to support entrepreneurs working on sanitation, health and economic inclusion for low-income communities, with a strong focus on digital innovations for young people.

What unites these diverse initiatives is not only their reach, but the way the private sector is often setting the pace–innovating faster than public programs and shaping models of inclusion that governments and partners now learn from. From supply chains to digital skills, African businesses are demonstrating that inclusion is not peripheral; it had become a driver of competitive advantage.

The Samsung Innovation Campus in partnership with Walter Sisulu University in South Africa has emerged as a leading model of skills development for digital youth inclusion. Since its 2022 launch, the program has equipped students in South Africa with future-proof skills ranging from coding and programming to artificial intelligence and the Internet of Things via intensive training tailored to the Fourth Industrial Revolution. Its first cohort of graduates in 2023 has already joined Samsung’s global innovation network, underscoring the initiative’s commitment to building tech-ready talent across the region.

Across West and Central Africa, Nestlé is supporting inclusive entrepreneurship through its MYOWBU (My Own Business) program in 11 countries. In Côte d’Ivoire. Since 2020, more than 1,000 youth—40 percent of them women—have become last-mile distributors, bringing Nestlé products to underserved communities. Participants receive startup kits, branding, and business development support, enabling them to operate viable micro-enterprises that meet both community needs and company expansion goals. “This is how I earn money which allows me to be independent and take care of my child,” states Laurent Ahou, a young mother participating in the MYOWBU program.

Stanbic’s Business Incubator in Uganda remains one of the few financial-sector-led programs providing full-cycle enterprise development support. Its collaboration with the United States African Development Foundation (USADF) enabled the disbursement of grants to early-stage agro-processors, reducing financial risk while ensuring business training is completed before funds are accessed. The incubator also works in close cooperation with the Petroleum Authority of Uganda (PAU) to align SMEs with opportunities in Uganda’s emerging oil sector.

These efforts reflect a growing understanding that formality, compliance and clear governance are not administrative hurdles, but essential to long-term business success. As Leo Long, Managing Director at the Strategic Impact Leadership Advisory Services (SILAS), cautions, “If ESG is purely used to report or disclose, then it is useless and has missed the point. It needs to be integrated across the organization, across all levels and operations to have real impact. We seek transformation, not compliance.” Leo’s view underscores the shift from box-ticking exercises to embedding ESG deeply within core operations. Without formal registration or credible accounting systems, entrepreneurs remain shut out of supply chains, finance and public tenders limiting both business resilience and inclusive growth.

A recent Brookings Institution report stressed the crucial role of commercial actors in stimulating growth across sectors while strategic collaboration with public institutions deepens financial markets and creates stable conditions for long-term investment. Integrating ESG principles into operations, not just reporting, provides companies with opportunities to expand market access, strengthen supply chains and reduce social and operational risks affirms Caroline Sonje, ESG specialist for ICEA LION Group operating across East Africa.

As ESG principles take root across Africa, companies are finding that aligning profit with purpose is not only possible, but increasingly necessary. Companies are positioning themselves as corporate social responsibility (CSR) pioneers, anticipating future regulations, creating social impact and ensuring a sustainable competitive advantage with investments in the skills, networks and long-term potential of young people and women across Africa notes Eva Sessou, a chartered accountant and director of audit and assurance at Deloitte based in Lomé, Togo.

These examples signal a broader shift. African companies are no longer waiting for governments or donors to dictate inclusion strategies. By embedding ESG into operations, the private sector is showing that social responsibility can drive competitiveness, stability and long-term growth. Inclusive business is no longer peripheral, but central to how forward-looking firms operate with youth and women integrated as core contributors to market growth and resilience.

Meaningful integration enhances market resilience, diversifies supply chains and strengthens stakeholder trust. As ESG principles take root, businesses that align commercial goals with inclusive development are positioning themselves at the forefront of Africa’s economic transformation, demonstrating that private sector leadership is essential to the continent’s long-term competitiveness.

Go to top

About the Author

Christopher Burke is a senior advisor at WMC Africa, a communications and advisory agency located in Kampala, Uganda. With over 30 years of experience, he has worked extensively on social, political and economic development issues focused on governance, the environment, agriculture, extractives, public health, communications, community mobilization, advocacy, peace-building and international relations in Asia and Africa.

Spain’s Health Service Challenges Spur Demand for Private Care

October 19, 2025

By Irene Palomo and Dr. Osman Sahin

The Spanish healthcare system is relying heavily on the private medical sector to help absorb the shock of the pandemic and address other challenges, such as acute staff shortages and long waiting lists. Last year, private hospitals made up over a third of healthcare activity, performing 41.6% of surgical procedures and treating 33.6% of emergencies.

Private healthcare providers are increasingly playing a pivotal role in supporting the overstretched Spanish public healthcare system, the SNS, as it struggles to meet patient need. But while the private healthcare sector is expanding, existing players and new entrants, must pay attention to the varying, regional nature of treatment demand, and understand the factors behind it, in order to operate effectively.

Spain’s health services are facing huge challenges, including a severe shortage of medical staff and an ageing population, particularly in rural and sparsely-populated areas, such as Asturias, Galicia and Castilla and León. The situation has been exacerbated by a substantial backlog of cases, which worsened particularly during the Covid era. Waiting lists for surgical procedures are most acute in provincial Spain. And across the country, there are big differences in delays for specific specialties.

The country is seeking to address what is essentially a severe supply and demand problem. In order to absorb the shock of the pandemic, the SNS needed to increase capacity dramatically. It was not able to do so itself because of fiscal, technical and regulatory constraints. Supply has simply not increased fast enough, which has opened the way for greater private sector involvement.

Health authorities in the country’s 17 autonomous regions and two autonomous cities (Ceuta and Melilla) – all with different surgical needs and priorities – have sought to work closely with the private sector, often in the form of public-private partnerships, as a means of boosting flagging service levels. About 58% of private hospitals have formal agreements with the SNS. At the same time, concerns about delays in – and the quality of – treatment in the public sector, have prompted many Spaniards especially the young, to purchase private health insurance. Take-up is geographically uneven but largely concentrated in urban areas.

In the wake of the pandemic, private healthcare has consolidated its role as a parallel and complementary system to the SNS. It is now an essential part of SNS’s efforts to reduce waiting lists, accounting for just over a quarter of healthcare spending in the country. More than half of Spanish hospitals are private, mainly based in Andalucía, Cataluña and Madrid, autonomous regions with the greatest demographic and economic weight.

Covid caused a sharp decline in inpatient surgical procedures in 2020, followed by a moderate recovery through 2021–2023, which was uneven across regions and surgical specialties. Overall, surgical procedure volumes are still below 2019 levels. Only urology, plastic surgery and neurosurgery were able to increase in an inpatient setting nationwide. At a regional level, just Murcia, Asturias, and Castilla and Leon have surpassed pre-pandemic inpatient volumes. Large autonomous regions such as Andalucía, Cataluña, Madrid, and the Valencian Community have yet to fully recover.

In December last year, in Spain as a whole there were still nearly 850,000 people on surgical waiting lists. Canarias, Castilla-La Mancha, Cataluña, and Madrid were able to lower average waiting times between 2019 and 2024, while the remaining autonomous regions saw them rise in the same period.

The inability to rebound from the pandemic, especially in large autonomous regions, has been attributed to factors such as doctor shortages (in 2023 the deficit reached nearly 5,900 medical specialists), an ageing workforce, and post-pandemic burnout. Studies conducted last year showed that 24% of doctors in Spain suffered from burnout, and sick leave rates jumping from 6% to 9% in the post-pandemic period. Research has shown that there are heightened regional disparities in not only waiting times, but also capacity and workforce stability.

As a consequence, we’re witnessing a major structural shift in Spain, with a significant volume of surgical procedures – especially dermatology, ophthalmology, and gynecology – transitioning from public hospital inpatient settings to private outpatient facilities. This is most prominent in regions like Andalucía (which has experienced a 700% increase in private outpatient dermatology surgeries since 2019), Aragón and Castilla-La Mancha (which since 2019 saw a 1,000% surge in outpatient gynecological procedures in private facilities). Private sector providers are increasingly vital in absorbing excess demand. They often outpace public facilities in both agility and capacity for certain specialties, likely reflecting Spanish patients’ eagerness to avoid long waiting lists.

Such is the growing reliance on private healthcare that last year the private hospital sector made up about 35% of Spain’s healthcare activity, performing 41.6% of surgical procedures (32.6% in 2023), managing 29.7% of hospital discharges (22.6% in 2023) and treating 33.6% of emergencies (25.2% in 2023). The specialties with the highest number of procedures performed by private practitioners included traumatology (37.1%), angiology and vascular surgery (35.8%), general and digestive surgery (33.1%), and urology and gynecology (30.9%).

In 2024, the turnover of the private hospital sector, which now comprises 431 medical facilities, amounted to EUR 13.9 billion, a third consecutive year of growth, spurring demand for advanced medical technologies and specialized healthcare services. Of the turnover figure for the sector, health insurers and mutual insurance companies, which are largely financing the expansion, contributed EUR 7.92 billion, while public-private collaboration agreements generated EUR 4.655 billion.

Annual investment within the private sector is now close to 1 billion EUR, of which EUR 650 million has been allocated to improvements and innovation and EUR 322 million to Medtech, presenting significant commercial opportunities for companies able to support outpatient care and operational efficiency. All the while, there has been a strong focus on the construction of new private medical facilities, particularly in regions with higher purchasing power, such as Madrid, Cataluña and the Balearic Islands.

While the Spanish healthcare is increasingly dependent on private sector providers, the complexity of demand requires the latter – whether established or new entrants – to focus on specific areas of demand in regions that invest most in private healthcare. There is quite a significant disparity in per capita public spending on healthcare across the country, with the lowest per capita spending regions, such as Madrid, seeing the greatest private sector investment. Other important factors to consider when going to market are that some surgical specialties, as we’ve seen, are more established in some regions than others while waiting lists for all specialisms vary significantly nationwide.

The private sector has been able to support the public healthcare system by being highly agile and responsive to patient needs across the country. Players have had to be alert to demographic and treatment trends to identify gaps in provision and anticipate areas of demand. They have also had to better understand regional health authority challenges and offer appropriate solutions. Such front-footedness and cooperation will be crucial in further cementing the private sector’s role in helping the state meet the country’s healthcare challenges.

Go to top

About the Authors

Irene Palomo is the Healthcare Analyst for Spain and Italy at FrontierView. Irene supports the Western Europe Healthcare Practice.

Dr. Osman Sahin is the Associate Practice Leader for Healthcare Strategic Insights at FrontierView. Osman leads the Western Europe Healthcare Practice.

Why Banks are More Resilient After a Run

October 18, 2025

Bank Collapse and Banking Crisis or global credit system falling in debt as a financial instability or insolvency concept

By Dr Kenneth Baldwin

Banks typically fail because they have too little cash on hand to meet payment demands (a liquidity problem) or asset values are too low to pay back their debts (a solvency problem). Traditionally, it’s assumed that adding liquidity risk to solvency risk can only make matters worse, but that is not necessarily the case. In fact, new research shows there are circumstances in which liquidity risk can help to mitigate solvency risk.

Introduction

Banks typically fail for at least one of two reasons: insolvency, when the total value of a bank’s assets is not enough to pay its debts, or illiquidity, when a bank is unable to turn sufficient assets into cash quickly enough to keep up with payment demands. The latter scenario can be triggered by a sharp increase in depositors rushing to withdraw their funds, called a ‘run’, or when creditors call in their loans and the bank has to sell assets quickly to pay up.

The 2008 financial crisis shows how this can play out in practice. Lax lending standards led banks to give mortgages to people who couldn’t repay them on the assumption that house prices would continue rising, so even if some borrowers defaulted on their payments, the bank could still turn a profit by selling the house.

However, as the market became flooded with houses for sale, house prices started to drop below the mortgage value. Banks started to lose money and confidence, and stopped lending, including to each other, which restricted the amount of liquid assets held by many institutions.

In the years since, regulators have taken a firmer hand, introducing additional requirements to guard against the risk of banks defaulting. For instance, the UK’s Prudential Regulation Authority (PRA) now imposes requirements on both liquidity and capital adequacy. Such oversight aims to ensure banks are able to survive runs, repay their debts, and absorb losses when they arise.

It is intuitive that adding liquidity risks to solvency risks increases the chance of a bank defaulting on its debts, but that’s not necessarily the case. While this line of thought seems to make sense at first, new research shows that there are circumstances in which liquidity risk may actually help to mitigate solvency risk.

When two risks make a right

To show how liquidity risk and solvency risk interact, I published a new financial model that derives the joint probability of bank default due to illiquidity or insolvency (the full article is freely available at https://doi.org/10.1016/j.econlet.2025.112581). The findings suggest that if a bank survives a liquidity run, the resulting contraction of its balance sheet can actually reduce its post-run insolvency risk.

Why? Because a smaller asset base suffers less damage from negative shocks to asset returns.

For instance, if a bank has £1 billion in assets and £800 million in debt, a ten percent shock would lose £100 million, leaving the bank with £900 million in assets, £800 million in debt, and a debt to assets ratio of 89%. However, if that same bank had shrunk to £600 million in assets and £400 million in debt following a liquidity crisis, a ten percent shock would only generate a loss of £60 million, leaving the bank with £540 million in assets, £400 million in debt, and a comparatively healthier debt to assets ratio of 74%. In effect, the contraction slows the bank’s possible movement towards the point where its assets are so devalued that it can no longer pay its debts. Whilst to some this result may seem obvious, its importance is that it links liquidity risk with solvency risk, showing that liquidity risk acts as a counterweight to solvency risk as long as a bank survives unexpected cash outflows.

This relationship also applies in situations where a bank faces liquidity pressure not caused by a run; for instance, when there is a non-rollover of debt and the bank has to convert assets to cash so it can pay outgoing creditors.

Rethinking risk management

A deeper understanding of how risks interact presents an opportunity for banks and regulators to fine-tune how they respond to financial stress.

Most significantly, this simple yet important result suggests that the intense pressure banks face to de-risk after a run may be overstated. Currently, it’s common practice for banks to assess the severity of each type of risk and set equity aside to guard against solvency risk accordingly. But the assumption that multiple risks are always a compounded threat, without sufficient recognition given to how sometimes one risk helps to mitigate another, may cause them to set aside more equity than they need to.

Reducing the pressure on banks to de-risk after experiencing liquidity challenges could encourage them to continue lending to the real economy in the wake of a run without compromising their stability. A revised understanding of joint liquidity-solvency risks should also be integrated into stress tests run by banks and regulators. As the financial sector continues to be impacted by geopolitical, environmental, and social uncertainties, these tests must adopt an approach to evaluating resilience that embraces the complexity of interactions between risks.

This new liquidity-solvency model offers banks a light at the end of the tunnel by reframing how risks are perceived. Rather than seeing every challenge as putting banks further on the back foot, edging closer to default and failure, it proves that surviving liquidity problems can increase resilience, proving the adage that what doesn’t kill you can indeed make you stronger.

Go to top

About the Author

Dr Kenneth Baldwin is a Senior Lecturer in the Department of Economics at Nottingham Business School, Nottingham Trent University (NTU). His research focuses on the intersection of finance and economics, including banking regulation and asset pricing. Prior to working in academia, he spent over two decades working at investment banks in senior risk management roles.

China Denounces U.S. Over Rare Earth Dispute and “Distorted” Remarks

October 17, 2025

China on Thursday accused the United States of spreading fear over its new rare earth export restrictions and sharply rebuked Treasury Secretary Scott Bessent for making “grossly distorted” comments about a top Chinese trade negotiator. The criticism came as Beijing rejected Washington’s call to lift the curbs, escalating tensions just weeks before President Donald Trump and President Xi Jinping are set to meet in South Korea.

In a strongly worded statement, the Communist Party’s official newspaper issued a detailed, seven-point rebuttal following U.S. claims that China’s rare earth measures represented a global power grab. The response came after U.S. Trade Representative Jamieson Greer and Bessent suggested Beijing could avoid Trump’s threat of a 100% tariff on Chinese imports by rolling back the export regime set to take effect on November 8.

“The U.S.’ interpretation seriously distorts and exaggerates China’s measures, deliberately stirring up unnecessary misunderstanding and panic,” Commerce Ministry spokesperson He Yongqian said at a press briefing. She emphasized that export licenses would be approved “provided the export licence applications are compliant and intended for civilian use.”

China’s latest export rules have raised concern among global manufacturers about whether any product containing even small amounts of Chinese rare earths would require government approval to ship abroad. He Yongqian clarified that this would not be the case.

Greer had earlier labeled China’s controls “a global supply-chain power grab” and urged Beijing not to enforce them. Bessent hinted that the U.S. might consider extending the current 90-day tariff truce, which is due to expire in early November.

Relations between the two economic superpowers had appeared steady following a September phone call between Trump and Xi and a Madrid summit that was hailed as a success for both sides after progress on the TikTok deal. However, tensions reignited after Washington expanded its “Entity List” in late September to target Chinese and foreign companies allegedly circumventing U.S. export restrictions on semiconductor technology.

Beijing argues that its export measures are legal and align with international standards. “The United States has long overstated national security concerns and abused controls, adopting discriminatory practices against China,” said one of seven infographics released by the state-run People’s Daily. The newspaper pointed out that the U.S. maintains a control list of over 3,000 restricted items, while China’s list includes about 900.

“Implementing such export controls is consistent with international practice,” read another section of the publication, reiterating Beijing’s defense of the new policy.

The dispute took a personal turn after Bessent described China’s chief trade negotiator Li Chenggang as “slightly unhinged” and “disrespectful,” claiming Li had threatened “global chaos” if the U.S. moved ahead with new port fees. Bessent also alleged that Li arrived in Washington uninvited in August for talks.

In response, He Yongqian said the U.S. remarks “seriously distort the facts,” stressing that China had been proactive in maintaining communication with Washington. “It is hoped the U.S. will cherish the achievements of the earlier economic and trade talks and immediately correct its wrongdoings,” she said.

Bessent maintained that trust between Trump and Xi had helped prevent further escalation, keeping diplomatic channels open despite disagreements between their trade teams. Analysts, however, warn that continued public sparring could overshadow the planned leaders’ meeting and unsettle markets already wary of new tariffs.

With both sides trading accusations and defending their policies, the world’s two largest economies appear locked in a delicate balancing act — seeking to project strength while trying to preserve enough stability to avoid another round of damaging trade escalation.

Related Readings:

China’s Rare Earth Curbs Draw U.S. Warning and Decoupling Threat

Trump Presses NATO to Sanction Russia and Tariff China

What the West is Missing About China

Go to top

China’s Rare Earth Curbs Draw U.S. Warning and Decoupling Threat

October 16, 2025

U.S. Treasury Secretary Scott Bessent has warned Beijing that its sweeping new export controls on rare earths and other critical minerals could push the United States and its allies to sever economic ties with China.

Speaking at a joint news conference with U.S. Trade Representative Jamieson Greer on Wednesday, Bessent cautioned that China’s latest policy risked isolating the world’s second-largest economy. “If China wants to be an unreliable partner to the world, then the world will have to decouple,” Bessent said. “The world does not want to decouple. We want to de-risk. But signals like this are signs of decoupling, which we don’t believe China wants.”

Beijing announced last week a new regime for rare earths and critical minerals that would require non-Chinese companies exporting products containing even trace amounts of these materials to obtain government approval. The move, scheduled to take effect in December, has drawn sharp criticism from Washington and its allies, who say it threatens global supply chains.

President Donald Trump has responded by threatening to impose an additional 100 percent tariff on Chinese imports by November 1 if Beijing proceeds with the export restrictions.

Greer said the measures represent more than just a trade response. “While China has taken a number of retaliatory trade actions against the United States, Europe, Canada, Australia and others in recent years, this move is not proportional retaliation,” he said. “It is an exercise in economic coercion on every country in the world.”

Both Bessent and Greer stressed that the United States has urged Beijing to halt implementation of the controls, warning that they could destabilize the global economy.

Sara Schuman, a former top U.S. trade negotiator for China, said the controls jeopardize progress made earlier this year in Geneva, where both countries reached an agreement aimed at easing tensions. “The ball is now in China’s court. Will it return to the Geneva agreement and rollback these [rare earth] restrictions, or choose to weaponise the global supply chains it dominates?” said Schuman, who now leads the trade and economic security practice at Beacon Global Strategies. “China’s answer to this question over the next two weeks will have broad strategic implications for years to come.”

Greer added that the restrictions would give China leverage over the global economy and technology supply chains. “This will impact artificial intelligence systems and high-tech products, but even regular consumer items like cars, smartphones and potentially even household appliances,” he warned.

Beijing has defended its decision, claiming it was a response to what it calls “punitive measures” imposed by Washington since the two sides held a fourth round of trade talks in Madrid last month. The U.S. has dismissed that argument, saying China appeared to have planned the export regime long before the Madrid meeting.

Bessent and Greer also took aim at Li Chenggang, a senior member of China’s trade delegation, accusing him of behaving unprofessionally during an unannounced visit to Washington in August. According to Bessent, Li was “very disrespectful” and threatened “global chaos” if the U.S. followed through on its plan to impose port fees on Chinese vessels docking in American harbors. The policy went into effect this week. “Perhaps he has gone rogue,” Bessent said.

Despite the growing friction, Bessent expressed hope that dialogue could prevent further escalation. He said he expected President Trump to meet Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation summit in South Korea on October 29, calling it a potential “opportunity to reset the tone.”

“I’m optimistic that we can de-escalate,” Bessent said. “But if China moves ahead, we will respond.”

Analysts believe Beijing’s strategy may be aimed at pressuring Washington to relax its own export restrictions on semiconductors and chip technology. When asked if the U.S. would consider such a trade-off, Bessent declined to comment, saying, “I’m not going to pregame what the negotiations are going to look like.”

He added, however, that one key question would be whether China delays the rollout of its export controls.

The U.S. and China have repeatedly postponed tariff deadlines since agreeing to a ceasefire in their trade war earlier this year. The current 90-day window for talks is set to expire in mid-November, heightening pressure on both sides to reach a compromise before the confrontation escalates further.

Related Readings:

What the West is Missing About China

Trump Presses NATO to Sanction Russia and Tariff China

China, India, Russia, and the SCO: Multipolarity and Global Power Politics

Go to top

1...596061...1,134 Page 60 of 1,134

FOLLOW US!

EDITOR'S PICK OF THE WEEK

CFO's new mandate. CFO explaining the presentation

The Performance and Transformation Orchestrator: The CFO’s New Mandate in the Age of AI

Anglea 0

By Terence Tse CFOs are evolving into AI-driven transformation orchestrators, balancing finance, technology, and strategy while upskilling teams, managing risks, and driving measurable business value. A key insight from this year’s AI for CFOs event, organized...