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US, China trade cools despite trade war détente, California’s governor accuses Trump of acting like ͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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June 9, 2025
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The World Today

  1. US-China trade divide
  2. Trump ‘dictator’ accusation
  3. US allies look elsewhere
  4. Wagner to leave Mali
  5. New US opioid threat
  6. Apple’s fraught conference
  7. China pumps brakes on EVs
  8. Automaker pivots to drones
  9. AI’s math ‘genius’
  10. Tennis’ new era begins

The London Review of Substacks, and the revival of traditional Chinese ink art.

1

China shifts trade away from US

A chart showing the share of global goods trade for China, the EU, and the US.

China is sharply shifting its trade away from the US, data for May showed, ahead of talks between Washington and Beijing today aimed at cooling their tariff dispute. Chinese exports to the US fell by more than a third compared with the year before, despite the countries agreeing a détente in their trade war. China’s economy remains vulnerable, though: Prices fell again, cementing fears of deflation. Still, analysts were upbeat about the prospects for the superpowers’ negotiations, pointing to Beijing’s decision to loosen controls on rare earths as a positive signal. “While the trade truce remains fragile… both sides now seem to be putting their best foot forward,” the founder of research firm Trivium wrote.

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2

Trump seeks to quash LA protests

A chart showing the disposable income of foreign-borne households by US state.

The governor of California accused US President Donald Trump of acting like a “dictator” by sending the National Guard into Los Angeles to quell protests. It’s the first time that federal troops have been deployed on domestic soil against the wishes of state authorities since the 1960s. Police officers clashed with crowds Sunday, the third day of protests sparked by border authorities’ raids on suspected undocumented migrants. Trump is testing the boundaries of executive power, the Financial Times’ Washington correspondent wrote: He used a rarely invoked law originally written to suppress rebellions against the federal government to deploy the troops, with legal scholars arguing the moves are in breach of the US Constitution.

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3

US no longer reliable, say allies

Donald Trump and Marco Rubio.
Nathan Howard/Reuters

The US is no longer a reliable ally for Western nations and they should adapt their defense strategies accordingly, two top officials warned. Fiona Hill, a national security adviser in the first Trump administration who advised the UK government on its strategic defense review published last week, told The Guardian that London could not depend on Washington “in the way that we did before,” but instead had to “manage” ties with the US. Meanwhile, writing in Foreign Affairs, former Australian Prime Minister Malcolm Turnbull — whose country shares deep intelligence and defense ties to the US — argued that American partners should not hope for a return to normalcy in Washington and should instead “band together to preserve what worked best in the order [US President Donald] Trump is intent on burying.”

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4

Wagner group to leave Mali

A chart showing the countries with the highest terrorism index scores.

Russia’s Wagner paramilitary said it would cease operations against Islamic extremists in Mali, although Moscow will retain a presence in the West African country. Mali, along with other nations in the Sahel region, has for years struggled to contain insurgents — including a powerful al-Qaeda affiliate with as many as 6,000 fighters — that have threatened regional stability and caused thousands of deaths. Wagner, used by the Kremlin to expand its influence in several countries, offers “regime survival” packages across the region in exchange for mining concessions that experts say exploit some of the world’s poorest nations. Nonetheless, the Sahel remains the world’s terrorism epicenter, accounting for more than half of global terrorism deaths last year.

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5

New deadly opioid spreads

A chart showing US overdose deaths per 100,000 people.

Mexican authorities warned of the spread of a powerful drug that could worsen the US overdose epidemic. A public health agency said that nitazenes — a group of synthetic opioids thought to be up to 40 times more powerful than fentanyl — could be laced into drugs, with even trace amounts deadly. More than 100,000 people died from drug overdoses in the US in 2023, with nearly 70% of the deaths attributed to opioids such as fentanyl. Authorities both in the US and Mexico have struggled to halt production of fentanyl, with just 30kg (66lbs) needed to produce as many as 15 million lethal doses. Because of their potency, cracking down on nitazenes could be even more complex.

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6

Apple event highlights challenges

A chart comparing Apple’s stock performance to the Nasdaq composite.

Apple’s flagship developer event comes at a fraught time, with the Silicon Valley giant trailing on artificial intelligence and facing challenges to the App Store’s dominance. The Worldwide Developers Conference, where the tech giant showcases its latest products, is not expected to be groundbreaking: A design overhaul of its iOS software is likely to be “the most exciting part,” Bloomberg’s Mark Gurman reported. The lack of ambition is concerning, Gurman wrote: It’s as though Apple “produces the best gas cars on the road” as its rivals pivot to electric — aka AI. Meanwhile, The Information said the company has devoted its efforts lately to fighting antitrust lawsuits, rather than “thinking about ways of diversifying away from the iPhone.”

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7

China reins in EV makers

A chart showing the number of EVs produced in China, the EU, and the US in 2024.

Chinese authorities sought to pump the brakes on the country’s breakneck automotive expansion as they iron out safety and liability concerns. Domestic carmakers’ rapid advances in electric and autonomous vehicles are forcing officials to urge companies to slow their rollout of self-driving features so watchdogs can catch up, the Financial Times reported. China’s industry ministry has also cautioned against a mounting EV price war after market leader BYD instituted price cuts, sparking concern over involution, a little-used economic term whereby excessive competition ultimately harms progress. Appropriately, Bloomberg noted, its direct translation from Chinese literally means “rolling inward.”

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Live Journalism

The global workforce is at an inflection point. New tech continues to impact how we work, and managers are struggling as organizations undergo major changes.

Join Judy Gilbert, Chief People Officer at ŌURA; Maureen Conway, Executive Director of the Economic Opportunities Program at The Aspen Institute; Mark Rayfield, President and CEO of Saint-Gobain North America; and additional leading voices to discuss the state of workplace productivity, resilience, and well-being, examining how leaders and policymakers are responding to rapidly shifting expectations around work.

Semafor will host newsmaking conversations in partnership with Gallup’s 2025 State of the Global Workplace report to explore new data on how employees and managers are navigating ongoing uncertainty in the global labor market.

June 12, 2025 | Washington, DC | RSVP

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8

Renault to make drones for Ukraine

A Ukrainian serviceman flying a drone.
Marko Djurica/File Photo/Reuters

Renault will reportedly begin making military drones for Ukraine. The French carmaker will set up production facilities within a few miles of the front line, media outlet France Info reported: Paris said a major auto manufacturer would help produce drones, without specifying which. Europe’s heavy industry is increasingly pivoting towards military output — mid-sized German engine-makers, chemical producers, and other enterprises are all shifting production to defense uses, the Financial Times reported. It is a move born of both opportunity and necessity: Europe is having to shoulder more of its own defense burden as the US pulls back, while the continent’s struggling manufacturing industry sees an opportunity as government defense spending ramps up, Politico reported.

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9

AI outperforms top mathematicians

An AI logo at a conference.
Aly Song/File Photo/Reuters

A secret meeting of thirty of the world’s top mathematicians saw artificial intelligence chatbots outperform them on solving mathematical problems. Academics gathering at the clandestine showdown in Berkeley, California, were tasked with creating sophisticated problems that they could solve but a “reasoning” chatbot could not, with $7,500 on offer for every successful problem — but struggled. The AIs were “approaching mathematical genius,” one mathematician said, and capable of answering the hardest questions. The impact of AI on math and computer science careers is hotly debated: In The New York Times, a researcher wrote that AI was going to damage public numeracy and degrade technical skills, while The Information argued that far from undermining the need for human programmers, AI makes them essential.

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10

Alcaraz wins French Open

Sinner and Alcaraz.
Susan Mullane/Imagn Images via Reuters

Carlos Alcaraz won the men’s singles title at Roland Garros in the longest French Open final of the modern era. Alcaraz beat Jannik Sinner, the world number one, in five sets over five hours, coming back from two sets and a break down in the fourth set: He has now won five grand slam titles at the age of 22. The match was noteworthy not just for its intensity and the quality of the tennis played — Alcaraz described the level as “insane” — but also for being the first grand slam final contested by two men born in the 2000s, a marker of how long the “Big Three,” Novak Djokovic, Roger Federer, and Rafael Nadal, have dominated the sport.

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Flagging
  • The third UN Ocean Conference begins in Nice, France, with French President Emmanuel Macron and 30 other heads of state in attendance.
  • The IEA’s monthly oil report is published.
  • Nvidia CEO Jensen Huang will deliver the keynote speech on the first day of London Tech Week.
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LRS
The London Review of Substacks

The knowledge economy

Much of human interaction must be understood as a status game. People often refuse charity when they need it, because the humiliation of accepting donations or gestures would be more painful than the hardship of doing without; they spend money on things they don’t need to demonstrate that they have it to spare. This is cross-cultural, and even overrides basic needs: “There were Polynesian chiefs,” writes the philosopher Dan Williams, “who grew so accustomed to having servants carry out their tasks that they would sooner starve than be seen feeding themselves.”

But this framework does not only apply to material goods, says Williams. People like to show off their intelligence and wisdom, and form beliefs “not to acquire knowledge but to signal their impressive qualities and loyalties.” Furthermore, he argues, competition for status might be behind the “the widespread populist rejection of claims advanced in institutions like science… and mainstream media.” By rejecting the knowledge disseminated by elites, Williams argues, populists and conspiracy theorists reject their claims to intellectual superiority: “It is the conspiracy theorist, not the elites, who knows things that others — the gullible sheeple — do not.”

Counting down

The pace of progress in artificial intelligence is remarkable — and scary. The CEO of Anthropic said this week that he expects AI to utterly transform society within two to ten years; other thinkers have similar timelines. But the programmer Dwarkesh Patel, who has interviewed many AI experts on his podcast, says he predicts somewhat longer timelines than many of his guests. He thinks that AIs’ difficulty in learning continuously will be a significant bottleneck: Where humans can learn incrementally, when you close an AI’s chat window, most of its knowledge is lost.

“How do you teach a kid to play a saxophone?” Patel asks. “You have her try to blow into one, listen to how it sounds, and adjust.” But with large language models, he says, it’s more like one student tries to play the sax; when she fails, you send her away and write up why she went wrong. You then give those instructions to the next student, who tries to learn from them. As a result, he anticipates things taking somewhat longer than the most bullish estimates. But even Patel, a somewhat skeptical voice, thinks we will enjoy “a relatively normal world up till the 2030s or even the 2040s,” but that after that, “we have to expect some truly crazy outcomes.”

His race is run

Bob Emmerson was a fixture of the Northampton Parkrun in the UK. Parkrun is a wonderful institution: A simple five-kilometer (3.1 mile) run, not a race, free and open to all. It began in west London but now operates across parks and cities in 23 countries every Sunday morning; among its many millions of participants are Olympic-level runners aiming for sub-15-minute times, and first-timers just trying to get round at a walking pace. Emmerson, who passed away last month aged 92, was among the few who notched up 500 runs, after taking up Parkrun in his early 80s.

Running blogger Craig Lewis felt it worth commemorating Emmerson, who described himself as an “old jogger” but was much more than that. In his mid-40s he had taken up cross-country running and had discovered a love for it, completing marathons and eventually ultramarathons; he broke age category records at 30-mile, 40-mile, and greater distances. He ran 24-hour races and was the British 100km champion. Even in his 80s he was running 30-minute 5Ks, although that had slowed to 45 minutes by his last years. He ran more than 100,000 miles in his lifetime, “all neatly recorded in a pocket log book.”

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Semafor Recommends

Shanshui: Echoes and Signals, M+, Hong Kong. Traditional Chinese ink art is having a renaissance, with several exhibitions at the upcoming Chinese Culture Festival in Hong Kong. The art form dates back centuries: At least one 12th-century emperor was a collector. Since the 1970s, the “New Ink Movement” has widened the scope of ink art. This ongoing three-year exhibition focuses on mountain water, a traditional subject for ink painting, and explores “the complex connections between landscape and humanity,” according to Nikkei. Buy tickets here.

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Semafor Spotlight
David Gitlin
Screenshot/Carrier

David Gitlin turned around US air conditioning and refrigeration group Carrier Global, earning him a reputation as one of the country’s most effective industrial executives — and one of the highest-paid. But when aerospace giant Boeing shortlisted him to be its new CEO, he declined.

I was flattered to be considered,” Gitlin told Semafor’s Andrew Edgecliffe-Johnson of the Boeing nod. But, he said, Carrier was “in the midst of doing something that history will prove is very, very special.”

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