World AI Governance: Xi Jinping told the 2026 World AI Conference in Shanghai that AI development must be a “symphony” of global cooperation, pushing openness while warning against “overstretching” national security claims. Open-Model Shock: Moonshot AI’s Kimi K3 (2.8T open-weight) is rattling markets and US rivals after benchmark claims that it rivals top frontier systems. Global AI Bloc-Building: China’s new World AI Cooperation Organisation (WAICO) is framed as multilateral governance, while Indonesia says it will balance WAICO with US-led Pax Silica. Trade Tensions in Europe: France and Germany plan a Franco-German roadmap by September to counter China trade imbalances, urging faster EU market investigations. Battery Policy Shift: China ends a decade-long lithium-ion battery tax holiday, adding a 2% consumption levy from Sept 1 (rising to 4% in 2027) while keeping sodium-ion/solid-state exemptions. Industrial & Infrastructure: A 14.02-meter “Pioneer” shield tunneling machine rolled off the line for the Taihu Lake rail tunnel; meanwhile, Chongqing’s landslide rescue continues after a building collapse. CPEC 2.0 Healthcare: Pakistan and China opened a pharma/healthcare investment conference with deals worth about $440m, aiming at co-production and biotech R&D. Blue Economy Deal: Somalia and China signed a zero-tariff fisheries protocol to boost Somali exports and jobs.