Washington’s AI coalition now comes with a choice: US or China

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Nine other stories

• Hormuz traffic nearly stopped after two more ships were attacked. Two vessels operated by Abu Dhabi National Oil Company were attacked while transiting on Thursday, according to the UAE. Kpler counted only two vessels passing on Friday, with no crude shipments visible; nine passed on Thursday against an August average of 12, compared with more than 130 a day before the war. The U.S. says it can sustain its blockade indefinitely, while Iran says transit still depends on its permission. 4
• Stocks fell while oil rose as the Iran risk returned to prices. U.S. and European shares declined on Friday as investors weighed tense U.S.-Iran talks and new economic data; oil prices gained. Brent and West Texas Intermediate were around $87 and $81 a barrel in the same reporting window, leaving markets to balance a physical supply risk against softer growth expectations. 45
• Taiwan lifted its 2026 growth forecast to 11.05%. The statistics agency said the tech-reliant economy is set for its fastest expansion in nearly four decades, driven by strong AI demand. The upgrade shows where the boom is landing first: in chip orders and exports, even as the same concentration leaves Taiwan more exposed to a reversal in global technology spending. 6
• SMIC raised prices for its most sought-after capacity. China’s largest foundry said AI-related demand would underpin orders and that customers would pay more for wafers processed in the third quarter. Second-quarter revenue topped $3 billion, profit attributable to shareholders reached $479.2 million, shipments rose 14% quarter on quarter to 2.9 million eight-inch-equivalent wafers, and average selling prices rose 5.7%. 7
• Apple trained a China-specific model with Alibaba’s support. Three people familiar with the matter told Reuters that Apple has trained a large language model for China, breaking from its earlier reliance on third-party models there. Apple Intelligence is expected to launch in the coming months after an iOS update; Alibaba’s Qwen model is also set to be incorporated, while the exact role of Apple’s own model remains unclear. 8
• Russian crude supplied a record share of India’s imports in July. Shipments from Russia accounted for 50.83% of India’s crude imports, or 2.47 million barrels per day, up 62.4% from a year earlier but down 4.8% from June. Middle East disruptions pushed refiners back toward Russian barrels even as a U.S. Senate measure would impose 100% tariffs on buyers of Russian oil; the House has not approved it. 9
• Moscow accused Washington of backing Ukrainian attacks. Foreign Minister Sergei Lavrov said Russia believes the United States is deeply involved in attacks by Ukraine and has raised the issue with Washington. The report contains Moscow’s allegation, not independent confirmation of U.S. operational support; the next signal is whether Washington answers publicly or the claim becomes another barrier to diplomacy. 10
• WHO recorded more than four attacks on healthcare a day in 2026. From January through August, the agency recorded more than 900 attacks causing at least 900 deaths and more than 1,400 injuries. Since 2018, more than 10,400 attacks across 29 countries and territories have caused about 5,700 deaths and more than 8,000 injuries; the UN report says no case has entered an accountability system. 11
• Trump asked Americans to accept higher gasoline prices. He framed higher pump prices as the cost of preventing Iran from obtaining a nuclear weapon and said he would soon declare the Strait of Hormuz U.S. territory. The remarks turn the military and shipping dispute into a domestic price test, with fuel costs now part of the political case for continuing the campaign. 12

Quote of the day

"It is the patient who cannot receive healthcare tomorrow. It is the ambulance that cannot make the next referral."

— Altaf Musani, WHO Director for Humanitarian and Disaster Management. 11

Further reading

• China weighs tighter export controls on AI models and chips — The Financial Times reports on Beijing’s consultations over limits on model data, model weights and advanced semiconductor technology.
• Price of niche rare earth jumps on fears of renewed Chinese export controls — The FT connects rare-earth pricing, AI data-centre infrastructure and the approaching deadline for a U.S.-China minerals truce.