View / Why quantum computing needs a NASA-like movement - https-//www.semafor.com

Reed’s viewCiting unnamed sources, The Wall Street Journal reported yesterday that the White House is considering taking a stake in several quantum computing companies to share in the upside of the technology.

The Commerce Department reportedly says it’s not true. Either way, it’s a good opportunity to explain where quantum computing is today.University research and private-sector breakthroughs have shown that quantum computing is real. But it’s only been proven on a small scale. For quantum computers to be useful, they need to be made a lot bigger. It might be possible to do that today, but it would take billions of dollars — perhaps hundreds of billions — to make it happen.The private sector, including companies like Google and IBM and startups like PsiQuantum, are working on ways to make scaling the technology practical and cost-effective. Ultimately, it needs to be profitable.When a quantum computing company says the technology is here today and generating revenue, it’s most likely being used to solve optimization problems that supercomputers handle pretty well. The quantum computers Google and others are talking about would revolutionize science.If the US government wanted to profit from quantum computing, the way to do it would be to start the quantum equivalent of NASA, with a moon landing-type goal of building an at-scale quantum computer within five years. Of course, the profits would come in the form of tax revenue from the gargantuan long-term economic impact of the project — not from a spike in stock prices. But quantum computing doesn’t have handsome, church-going astronauts or a giant reminder in the sky every night of why it’s worth so many taxpayer dollars to get there.In this article:Reed’s viewRoom for DisagreementNotableRoom for DisagreementThe Quantum Insider pointed out that government intervention in quantum could mean companies “face new expectations around government oversight, national‐security reviews, and potential restrictions on foreign collaborations,” which risks slowing innovation in the private sector. NotableGoogle is one of the company’s that’s been working the hardest toward advancing quantum computing, with its most recent research addressing an important question: How will we realistically use quantum computers once they actually exist?ADTop StoriesTrump immigration enforcement under siege from Hill RepublicansKevin Lamarque/ReutersUS withdrawal from multiple UN agencies raises alarm in KenyaJames Wakibia/SOPA Images/LightRocket via Getty ImagesTrump adviser Stephen Miran mired in Fed’s personnel purgatoryLouisa Gouliamaki/ReutersZimbabwe inflation drops to single digits for first time in decadesJekesai Njikizana/AFP via Getty ImagesTrump has become the ultimate activist investor, and CEOs are gearing up for battleBrendan McDermid/ReutersTrump shifts course — somewhat — in Minnesota after shootingKevin Lamarque/ReutersSenate moves toward Thursday shutdown voteKevin Lamarque/Reuters ‘Wait for it to pop’: Orlando Bravo on the AI bubble and vibe-coding revolutionCourtesy of Thoma BravoThe Worldat a GlanceUpdated 5:12pm GMT+5:30US conducts military exercises in Middle East amid Iran tensionsUpdated Jan 28, 2026, 6:32am ESTJan 28, 2026, 5:02pm GMT+5:30PostEmailWhatsappCopy linkShareMike Blake/ReutersThe likelihood of US strikes on Iran increased once again, as Washington deployed a carrier group to the Middle East.

President Donald Trump threatened attacks after Tehran’s crackdown on anti-government protests, but seemed to back away. Now, though, the USS Abraham Lincoln and its escorts, along with land-based fighter-bombers, are in the region, and US forces are conducting military exercises; Trump said the “beautiful armada” should encourage Iran to “make a deal.” Saudi Arabia and the UAE, two key US regional allies, ruled out the use of their airspace or territory, making any attacks more complicated, although not impossible. Estimates of the number killed by the Iranian regime in the recent protests range from 6,000 to more than 30,000.— Tom ChiversUS court to hear landmark tech addiction caseUpdated Jan 28, 2026, 6:33am ESTJan 28, 2026, 5:03pm GMT+5:30PostEmailWhatsappCopy linkShareHollie Adams/Illustration/ReutersThe first of more than 1,000 lawsuits against social media platforms in the US goes to trial this week, with tech giants’ internal communications likely to play a key role. A 20-year-old woman is suing YouTube and Meta — TikTok and Snapchat settled with her out of court — alleging they designed their platforms to be addictive. The case faces significant hurdles: The allegation that social media causes mental health issues, rather than simply correlating with them, is scientifically contentious; the existence of “social media addiction” as a meaningful concept is widely disputed; and courts are rarely a good place to settle scientific questions. But recently unsealed documents apparently showing that tech giants targeted young users could be influential to the jury.— Tom ChiversADUS Fed expected to hold rates steady, despite pressure from TrumpUpdated Jan 28, 2026, 6:39am ESTJan 28, 2026, 5:09pm GMT+5:30PostEmailWhatsappCopy linkShareBrendan McDermid/ReutersThe US Federal Reserve is expected to hold rates steady today, a decision overshadowed by threats to its independence and questions over its future leadership. Fed chair Jerome Powell, long the target of US President Donald Trump’s ire for refusing to aggressively lower borrowing costs, is the subject of a criminal inquiry, while a bank governor is contesting Trump’s attempt to fire her. Economists worry the cases could erode the Fed’s credibility as apolitical. Powell’s term is up in May, but Trump “wants something that may not exist,” The Wall Street Journal said, “a new chair who will pursue his demands for lower interest rates while still commanding enough credibility on Wall Street and from his colleagues to deliver them.”— Prashant RaoEurope’s economies faring well despite domestic pessimismUpdated Jan 28, 2026, 6:37am ESTJan 28, 2026, 5:07pm GMT+5:30PostEmailWhatsappCopy linkShareHeiko Becker/ReutersEurope’s economy is showing signs of recovery, despite widespread despair over its prospects. Surveys suggest Europeans are pessimistic about the continent’s future, but International Monetary Fund chief Kristalina Georgieva told Politico that was misplaced: Seven of the world’s top 10 performing economies are European, and ING analysts said Germany’s economy, stagnant for years, is expected to accelerate this year after stimulus. The continent still faces economic challenges. Georgieva echoed former European Central Bank head Mario Draghi in calling for deregulation and economic integration, while consulting firm BCG said in a report published today that both problems could be alleviated by changing the financial architecture of European state pension funds, freeing up capital to invest in the continent’s businesses.— Tom ChiversADSpain to give migrants legal statusUpdated Jan 28, 2026, 6:42am ESTJan 28, 2026, 5:12pm GMT+5:30PostEmailWhatsappCopy linkShareA discarded boat used by migrants to reach Mallorca. Francisco Ubilla/Reuters.Spain plans to grant 500,000 undocumented migrants legal status, bucking a trend among many Western nations that are cracking down on immigration.

Prime Minister Pedro Sánchez has for years sought to increase immigration to Spain: The country ranks as the seventh oldest in the world by median age, and spends around 12% of its GDP on pensions. Despite fears of an impact on domestic workers, Sánchez said the unemployment rate has fallen by 40% even as Spain has added two million foreign workers. Though facing similar demographic challenges, much of the West has turned against migration, while East Asian governments have maintained a historic aversion to it, with economists warning the decision could cripple their economies.— Jeronimo GonzalezMexico cancels oil shipment to Cuba amid US pressureUpdated Jan 28, 2026, 6:36am ESTJan 28, 2026, 5:06pm GMT+5:30PostEmailWhatsappCopy linkShareNorlys Perez/File Photo/ReutersMexico cancelled an oil shipment to Cuba following pressure from Washington, as US President Donald Trump warned the island nation would be “failing pretty soon.” Since Washington captured Venezuela’s Nicolás Maduro, oil shipments from Venezuela to Cuba have plummeted, leaving Mexico as Havana’s biggest crude supplier. But the White House has urged Mexican President Claudia Sheinbaum to cut oil sales, despite pressure from hard-left members of her governing party to support Havana’s Communist regime. Sheinbaum has defended the move to halt oil deliveries as a “sovereign decision.” Cuba, among the poorest countries in the Western Hemisphere, is facing the worst economic crisis in a generation, compounded by plummeting tourist numbers over the US threats.— Jeronimo GonzalezChina moves from Africa lender to debt collectorUpdated Jan 28, 2026, 6:35am ESTJan 28, 2026, 5:05pm GMT+5:30PostEmailWhatsappCopy linkShareChina’s Xi Jinping at the China-Africa Leaders’ Roundtable Dialogue. Alet Pretorius/Pool/Reuters​​African nations now send more money to China in the form of loan repayments than they receive in new borrowing from the world’s second-biggest economy, signaling the stark shift in Beijing’s strategy on the continent. China began accelerating lending to African nations two decades ago, with annual loans peaking at almost $30 billion in 2016. However, under-performing projects and economic mismanagement led several countries to default on their loans, with China pulling financing in response. Yet Beijing remains keen on expanding its footprint in Africa as competition with the US for access to critical resources heats up: Chinese foreign direct investment in the region has boomed, growing almost tenfold in the two decades to 2024.— Jeronimo GonzalezInvestors upped their AI bets, despite fears of bubbleUpdated Jan 28, 2026, 6:34am ESTJan 28, 2026, 5:04pm GMT+5:30PostEmailWhatsappCopy linkShareDenis Balibouse/ReutersInvestors and analysts upped their bets on an AI boom, despite fears of a bubble. The AI startup Anthropic will raise a further $20 billion in funding at a $350 billion valuation; it sought $10 billion, but investor demand was high. The tech investment group Softbank, meanwhile, is in talks to back OpenAI with a further $30 billion to improve its position in the AI race, Reuters reported, and semiconductor equipment manufacturer ASML saw its stock price surge 7% after announcing increased orders on the back of surging demand for AI. The Dutch giant, which makes the world’s most advanced chipmaking machines, is already Europe’s largest company by market capitalization.— Tom ChiversSilicon Valley divided over response to Minneapolis shootingsUpdated Jan 27, 2026, 5:36pm ESTJan 28, 2026, 4:06am GMT+5:30PostEmailWhatsappCopy linkShareYves Herman/Denis Balibouse/ReutersHundreds of US tech workers are speaking out about the US’ deadly immigration crackdown in Minneapolis, but most of Silicon Valley’s top CEOs remain silent.OpenAI’s Sam Altman told employees that ICE operations are “going too far,” while Anthropic’s CEO characterized the situation in Minnesota as “horror” in a post.They couched their condemnation with praise for President Donald Trump, however, reflecting the tightrope tech chiefs are walking in responding to the unrest without drawing the White House’s ire.More than 800 employees, including those from Google, Microsoft, and Meta, called on their bosses to condemn ICE, but many in AI would prefer staying quiet to “getting dragged into the mind-killing field that is politics,” Transformer wrote.— J.D. CapeloutoTrump touts affordability efforts as US consumer confidence fallsUpdated Jan 27, 2026, 5:31pm ESTJan 28, 2026, 4:01am GMT+5:30PostEmailWhatsappCopy linkShareSarah Silbiger/ReutersUS consumer confidence plummeted this month to its lowest level since 2014, a leading index showed, as Americans grew more anxious about high prices and a cooling job market.Even as the US economy keeps growing and inflation eases, the country has been stuck in a “low hire, low fire” labor environment, and the latest reading is a “warning sign to policymakers” to focus on affordability and reviving hiring, one economist said.Geopolitical shocks fueled by President Donald Trump’s volatile foreign policy also weighed on consumers, the survey showed.Trump on Tuesday hopes to refocus voters’ attention on his efforts to bring costs down in a speech in Iowa, a state whose farming industry was hurt in the president’s trade war.— J.D. CapeloutoYen strengthens on intervention chatter Updated Jan 27, 2026, 5:33pm ESTJan 28, 2026, 4:03am GMT+5:30PostEmailWhatsappCopy linkShareIssei Kato/ReutersJapan’s currency strengthened Tuesday as speculation simmered that Japanese and US authorities could intervene after a sharp slide in the yen. Such a coordinated step — which could involve the US buying Japanese assets — is rare and remains unlikely, analysts said. Unilateral moves by Tokyo are more likely: Last week’s sharp yen selloff was fueled by concerns over Prime Minister Sanae Takaichi’s spending and tax cut proposals, and she is eager to get through a Feb. 8 snap election “without markets blowing up,” Bloomberg wrote. A Brookings economist, though, argued that the yen’s best hope is for the Japanese government to sell assets to pay down its debt, which is the highest among the world’s major economies: “The only way to get there… is for things to get worse before they can get better.”— J.D. CapeloutoRecord debt threatens global economyUpdated Jan 27, 2026, 5:29pm ESTJan 28, 2026, 3:59am GMT+5:30PostEmailWhatsappCopy linkShareRicardo Moraes/ReutersAggressive government spending in wealthy countries is propping up global economic growth, but poses a threat to long-term financial stability. From the US to Europe to Asia, countries are rolling out large stimulus packages financed by budget deficits, a trend that is expected to boost growth and jobs, The Wall Street Journal reported. But the record debt raises questions about the ability to weather future crises, and risks causing market turbulence: Japan’s bond market was roiled last week by concerns over government spending measures. “The menace of unsupportable borrowing” now looms over the global economy, The New York Times wrote. “The more you consume now, the less you can consume later,” an economist said.— J.D. CapeloutoEurope EV sales overtook gas cars for the first time in DecemberUpdated Jan 27, 2026, 5:28pm ESTJan 28, 2026, 3:58am GMT+5:30PostEmailWhatsappCopy linkShareFabian Bimmer/ReutersSales of all-electric vehicles overtook gasoline-only ones in Europe for the first time in December, boosted by an influx of low-cost Chinese models. The shift comes despite a 38% drop in Tesla sales in 2025 as the Elon Musk-owned carmaker lost ground in the continent to China’s BYD. The EU is also planning to allow more China-made EVs into Europe. EV sales also boomed in the US last year, but American automakers are reining in electrification plans amid the Trump administration’s rollback of EV incentives. For Washington, the growth of EV trade elsewhere “should be taken as a serious signal of future global trends,” a CSIS analyst argued.— Tom ChiversUS envoy in Beijing signals progress in US-China agreements Updated Jan 27, 2026, 5:26pm ESTJan 28, 2026, 3:56am GMT+5:30PostEmailWhatsappCopy linkShareEvelyn Hockstein/ReutersWashington’s top envoy in Beijing signaled business ties between the world’s two biggest economies are on more solid ground after their trade war truce last October.

Ambassador David Perdue reportedly told a closed-door meeting of business leaders in Hong Kong that the US and China had made progress on several agreements, including a massive Boeing sale, ahead of President Donald Trump’s expected trip to China in April. Perdue earlier told Bloomberg that the broader US-China relationship was “improving multi-dimensionally.” Other Western nations are also pursuing closer ties with Beijing as Trump’s trade policies and unpredictable diplomacy reshape global partnerships: Finland’s premier visited China and pledged to boost economic cooperation on Tuesday, and the UK’s Keir Starmer lands in Beijing on Wednesday.— J.D. CapeloutoAnthropic CEO Amodei warns of AI’s fast-coming changesUpdated Jan 27, 2026, 6:41am ESTJan 27, 2026, 5:11pm GMT+5:30PostEmailWhatsappCopy linkShareDario Amodei. Denis Balibouse/ReutersPowerful, world-transforming AI could be two years away, and humanity must get through the technology’s “adolescence” unscathed, Anthropic’s CEO argued. Dario Amodei’s 19,000-word essay warned against both “doomerism” about AI and dismissiveness of its risks, saying that judging by current improvements, soon AI will be “better than humans at essentially everything.” It is not inevitable that that will lead to disaster, but it is plausible, because AI is unpredictable, he said. That could mean the AI itself seizing power, autocratic states using it for repression, or individuals creating bioweapons. Democracies, Amodei wrote, must move fast to outpace autocracies yet carefully to avoid catastrophe; China chip export controls, research into safe AI, and regulations on AI transparency will be vital.— Tom ChiversEU, India sign ‘mother of all deals’Updated Jan 27, 2026, 6:44am ESTJan 27, 2026, 5:14pm GMT+5:30PostEmailWhatsappCopy linkShareAltaf Hussain/ReutersThe EU and India signed a landmark trade agreement as both look to bolster commercial alliances amid threats from Washington. The EU expects to double exports to India by 2032 as part of the deal, which was negotiated for two decades, while Delhi, subject of 50% tariffs from Washington, anticipates EU-bound exports to soar. “We have concluded the mother of all deals,” the European Commission president said. US President Donald Trump’s threats have instilled a sense of urgency in the EU, which has accelerated talks with several trading partners. Washington, meanwhile, remains steadfast in using its economic weight to extract concessions from allies: On Monday Trump announced 25% duties on South Korea for “not living up” to an agreement.— Jeronimo GonzalezBrazil’s Lula agrees to US visit following call with TrumpUpdated Jan 27, 2026, 6:48am ESTJan 27, 2026, 5:18pm GMT+5:30PostEmailWhatsappCopy linkShareTrump and Lula in 2025. Evelyn Hockstein/File Photo/ReutersBrazilian leader Luiz Inácio Lula da Silva agreed to visit Washington following a call with US President Donald Trump, a sign that bilateral tensions are easing. Trump imposed 50% tariffs on Latin America’s biggest economy last year over what he said was the unfair treatment of former Brazilian president and ideological ally Jair Bolsonaro. Though the row has calmed in recent months, Lula has criticized Washington’s capture of Venezuela’s leader and called on Trump to limit the focus of his Board of Peace to Gaza, citing concern it could rival the United Nations. Meanwhile, in a call with China’s leader last week, Lula vowed to work with Beijing as Trump vies to reshape the global geopolitical order.— Jeronimo GonzalezBritish PM Starmer courts China amid US unpredictabilityUpdated Jan 27, 2026, 6:47am ESTJan 27, 2026, 5:17pm GMT+5:30PostEmailWhatsappCopy linkSharePrime Minister Sir Keir Starmer during a bilateral meeting with President Xi Jinping of China in 2024. Stefan Rousseau/Pool via Reuters.UK Prime Minister Keir Starmer headed to China for a visit that will see him walking a tricky tightrope. Starmer wants to rekindle Britain’s flagging economy, especially as Washington becomes more unpredictable. But he is loath to antagonize the White House, Politico reported. A further complication is that his government plans to heighten scrutiny of Chinese espionage, the Financial Times noted. The West is courting China — the leaders of Canada, Finland, France, and Germany have also either visited recently or will soon — but a former Canadian diplomat jailed by China warned that drawing close to an authoritarian, expansionist Beijing also has risks. “[If] your long-term partner [becomes] abusive,” he told Semafor, you shouldn’t “hop into bed with another serial abuser.”— Tom ChiversUS storm drives global natural gas prices higherUpdated Jan 27, 2026, 6:42am ESTJan 27, 2026, 5:12pm GMT+5:30PostEmailWhatsappCopy linkShareJonathan Ernst/ReutersA brutal cold snap in the US drove natural gas prices higher globally, highlighting the world’s growing dependence on American fossil fuels. The Trump administration has, largely successfully, prioritized the export of liquefied natural gas, with Europe particularly dependent on US supplies after slashing its reliance on Russia. But the storm — which has left 10 people dead and a million without power — has led to surging gas prices in the US, up around 120% in the past week, as suppliers have had to shut drilling sites because of the cold and prioritize domestic demand. “Prices have likely peaked,” ING commodities analysts forecast. As one Reuters columnist put it: “When the US freezes, the global LNG market catches a cold.”— Prashant RaoFears grow of rising US inflationUpdated Jan 27, 2026, 6:48am ESTJan 27, 2026, 5:18pm GMT+5:30PostEmailWhatsappCopy linkShareSarah Silbiger/ReutersA growing number of experts warned of the risks of inflation accelerating in the US, even as markets bet that policymakers will lower borrowing costs. Traders are pricing in at least two cuts this year, believing the Federal Reserve will prioritize a soft labor market. But inflation could yet worsen, two leading economists warned in a LinkedIn post, projecting it could top 4% in 2026, while Germany’s Kiel Institute projected that the Trump administration’s tariffs meant “US companies will be confronted with shrinking margins and consumers with higher prices in the long run.” In a note to clients, the investment firm Bridgewater warned that rising protectionism and the race to build out AI infrastructure were both likely to drive inflation.— Prashant RaoIsrael recovers body of last hostage in GazaUpdated Jan 26, 2026, 5:39pm ESTJan 27, 2026, 4:09am GMT+5:30PostEmailWhatsappCopy linkShareAmir Cohen/ReutersIsrael said it recovered the body of the final hostage held in Gaza, a milestone in efforts to advance a US-brokered ceasefire in the enclave.Police officer Ran Gvili was killed fighting Hamas attackers on Oct. 7, 2023 — Israel had resisted moving ahead with the truce until his remains were retrieved.For the first time since 2014, there are no Israeli hostages, dead or alive, in Gaza — “a reminder of the deep roots of this conflict and how difficult it could still be to shape a lasting peace,” the BBC wrote.Israel also said Monday it will reopen a key border crossing between Gaza and Egypt, but the next steps of the peace plan center on more challenging tasks, including Hamas’ disarmament.— J.D. CapeloutoTrump softens tone on Minneapolis shootingUpdated Jan 26, 2026, 5:39pm ESTJan 27, 2026, 4:09am GMT+5:30PostEmailWhatsappCopy linkShareTim Evans/Reuters US President Donald Trump on Monday sent his border czar to oversee immigration enforcement in Minneapolis and softened his tone on the ongoing crackdown, after federal agents killed a second US citizen there.In a sign of Trump’s efforts to quell bipartisan backlash to Saturday’s shooting of Alex Pretti, the president spoke with Minnesota’s Democratic governor and said they are “on a similar wavelength.”State officials, meanwhile, urged a US judge to block the deployment of thousands of federal agents.The reckoning has spurred some Republicans to worry the Trump administration is losing control of the narrative around immigration, squandering one of its strongest issues.Some Border Patrol agents are reportedly set to leave Minnesota this week.— J.D. CapeloutoEurope pushes for energy, tech independence Updated Jan 26, 2026, 5:15pm ESTJan 27, 2026, 3:45am GMT+5:30PostEmailWhatsappCopy linkShareStephane Mahe/Reuters Heightened transatlantic tensions are spurring Europe’s push for energy and tech independence. Ten European countries on Monday agreed to collaborate on a massive offshore wind farm project in the North Sea, linking to all participants via submarine cables. “Energy is now central to this volatile age,” the UK and EU’s energy czars wrote in Politico, emphasizing the need for “homegrown clean power” to achieve security. The EU is also accelerating efforts to promote tech sovereignty, The Wall Street Journal reported, after the US’ Greenland quest sparked concerns of a once unthinkable scenario in which Washington could cut off the region’s access to American tech. Still, a decoupling is unlikely; Europe is hugely reliant on US cloud computing services.— J.D. CapeloutoEU opens investigation into Elon Musk’s X over Grok deepfakesUpdated Jan 26, 2026, 5:20pm ESTJan 27, 2026, 3:50am GMT+5:30PostEmailWhatsappCopy linkShareYves Herman/ReutersThe EU signaled it is stepping up oversight of large US tech platforms, risking further ire from Washington.

The European Commission on Monday opened an investigation into Elon Musk’s social media network, X, over a proliferation of nonconsensual sexualized deepfakes created by its AI tool. The EU also plans to heighten scrutiny of WhatsApp after subjecting Meta’s messaging platform to the bloc’s toughest standards over its high numbers of users. Brussels began rethinking its Big Tech crackdown last year, but has since faced calls to hold firm and increase enforcement, despite threats of US retaliation over the continent’s regulatory impulses. Efforts to create an independent bloc-wide tech regulator — “Washington’s worst nightmare” — are now picking up steam, Politico EU reported.— J.D. CapeloutoUS lobbying over AI data centers intensifies ahead of midterms Updated Jan 26, 2026, 5:34pm ESTJan 27, 2026, 4:04am GMT+5:30PostEmailWhatsappCopy linkShareLeah Millis/Reuters Nvidia is investing $2 billion in cloud computing provider CoreWeave to boost the buildout of data centers, which are set to become a central political focus in the US this year. Some of the country’s largest data center operators plan to boost spending in an attempt to lobby lawmakers and affected communities to back the projects, which have faced heavy resistance over accusations that they drive up energy prices and use too much water. At least 25 projects were canceled last year following local opposition, Heatmap News reported. Another two dozen were blocked or delayed just this month, according to research firm MacroEdge. A populist backlash to data centers could play out in this year’s midterm elections across partisan lines, analysts say.— J.D. CapeloutoChinese AI apps turn to cash handouts to lure users Updated Jan 26, 2026, 5:36pm ESTJan 27, 2026, 4:06am GMT+5:30PostEmailWhatsappCopy linkShareA Baidu booth at a tech expo. Go Nakamura/ReutersChinese AI apps are turning to cash handouts to attract new users, the latest sign of the country’s hyper-competitive tech landscape. Tech giants Baidu and Tencent are both offering virtual “red envelopes” as signup incentives — a nod to the cash gifts given to loved ones during Lunar New Year. AI apps have emerged as the next frontier in the country’s tech arms race, as firms rush to inject their chatbots with shopping and payment tools. It reflects China’s focus on widespread AI adoption: Companies are prioritizing proliferation over profitability. AI business models in China “still haven’t been figured out,” a Trivium China analyst argued on a recent podcast. Consumer-facing apps “do have subscriptions, but nobody’s paying for them.”— J.D. CapeloutoTaiwan monitoring China after Beijing fires top generalUpdated Jan 26, 2026, 6:43am ESTJan 26, 2026, 5:13pm GMT+5:30PostEmailWhatsappCopy linkShareMaxim Shemetov/Pool/ReutersTaiwanese authorities said they were monitoring “abnormal” changes at the top of China’s military after the stunning dismissal of the country’s leading general. Chinese leader Xi Jinping placed Zhang Youxia and another senior officer under investigation for corruption, an astonishing shakeup of military leadership: Zhang reportedly leaked nuclear secrets to the US. Taipei said it was on alert because the threat from the mainland, which regards Taiwan as a renegade province, remained high. The move further consolidates power in Xi’s hands but raises “doubts about the country’s war readiness,” The Economist noted. “The PLA is in a major crisis,” one expert warned, “with a level of leadership instability unseen since the heyday of the Cultural Revolution.”— Tom ChiversIndia, EU set to boost ties with raft of new deals Updated Jan 26, 2026, 6:38am ESTJan 26, 2026, 5:08pm GMT+5:30PostEmailWhatsappCopy linkShareIndia’s Prime Minister Narendra Modi greets European Commission President Ursula von der Leyen. Adnan Abidi/Reuters.India looks set to sign deals strengthening relations with the EU, the latest indication of the rapid realignment of global ties in the year since US President Donald Trump took office. Top EU officials will be the guests of honor at India’s Republic Day celebrations, and are expected to sign a trade agreement as well as a security and maritime pact. Both Brussels and Delhi have faced Trump’s wrath over the past 12 months, and the deals, which were agreed unusually quickly, point to the priority they have placed on shifting away from a reliance on Washington. “In an increasingly volatile world,” the European Commission chief told the Times of India, “this cooperation is not only valuable, it is vital.”— Prashant RaoVolkswagen considers pulling out of US factory plans over tariffsUpdated Jan 26, 2026, 6:39am ESTJan 26, 2026, 5:09pm GMT+5:30PostEmailWhatsappCopy linkShareAnnegret Hilse/File Photo/ReutersVolkswagen may pull its plans for a major Audi factory in the US, citing President Donald Trump’s automotive tariffs. The car giant’s CEO told Handelsblatt that US levies cost VW $2.5 billion in the first nine months of 2025, and that reductions were necessary. German investments in the US as a whole fell 45% year-on-year in 2025 as Trump’s duties took hold, Reuters reported, while German exports to the US also fell, although the dollar’s depreciation was likely a factor. After Trump warned at the World Economic Forum last week of possible further duties on Europe, growing global uncertainty over the stability of trade relationships pushed gold above $5,000 per ounce for the first time.— Tom ChiversMexico considers halting Cuba oil exports amid US retaliation concerns Updated Jan 26, 2026, 6:37am ESTJan 26, 2026, 5:07pm GMT+5:30PostEmailWhatsappCopy linkShareNorlys Perez/File Photo/ReutersMexico is reportedly considering halting oil shipments to Cuba in a bid to avoid retaliation from Washington, which is looking to overthrow the regime in Havana. Cuba had long relied on Venezuelan oil to run its economy, but crude shipments have plummeted since the US ouster of Nicolás Maduro and its blockade on oil tankers leaving Venezuela; Mexico is now the top oil exporter to Cuba. Mexico is seeking to placate US President Donald Trump — who has repeatedly threatened steep tariffs as well as military strikes against cartels in the country — ahead of an upcoming review of a North American free trade agreement that is a lifeline for Mexico’s economy.— Jeronimo GonzalezJapan parts with Chinese pandas as tensions with Beijing growUpdated Jan 26, 2026, 6:40am ESTJan 26, 2026, 5:10pm GMT+5:30PostEmailWhatsappCopy linkShareIssei Kato/File Photo/ReutersJapan’s only pandas will return to China tomorrow, with relations between Tokyo and Beijing frosty. Crowds gathered at Tokyo’s Ueno Zoo for emotional goodbyes to Xiao Xiao and Lei Lei during their last public appearance Sunday; their departure leaves the country without pandas for the first time since 1972.

Prime Minister Sanae Takaichi’s recent comments that Japan could support Taiwan if China attacked the island sparked tensions, and prospects of replacement pandas are uncertain. Beijing has used loans of the bamboo-eating, sex-shy bears to gesture goodwill to other nations since World War II, and the growing hostility between the East Asian powers suggests that goodwill is in short supply.