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China's housing sector is facing ongoing challenges despite possible rescue measures. The sector has implemented reforms including changes in financing, presale, and property tax. Additionally, 300 billion yuan has been allocated to address excess inventory. However, weak demand, falling prices, and a 4.7% Q2 GDP growth, along with Goldman's GDP contribution cut, indicate the difficulties the sector is facing. The impact of these challenges on the real economy may take years to fully manifest. China's central bank has also taken measures to combat the economic slowdown by cutting key rates to record lows. However, these monetary policies alone may not be sufficient to address the crisis in the housing sector. The sector's struggles are further exacerbated by high levels of debt in local governments and the fact that the previous construction boom was fueled by borrowing. In addition, China's Third Plenum has announced reforms aimed at reducing systemic risks related to real estate, local debt, and financial issues. However, experts believe that these measures are unlikely to fully solve China's entrenched economic challenges. The country's large production capacity, weak domestic demand, and rising global protectionism also pose additional obstacles to economic recovery. China's rural land reform, on the other hand, is seen as a potential solution to address the rural-urban income gap and support the goal of common prosperity. The reform allows farmers to commercially utilize their homes through renting, shareholding, and cooperation, which helps in boosting their incomes. It also aims to integrate migrant workers by safeguarding their rural property rights. The implementation of the reform will require legislation to break down restrictions on using rural property as collateral for loans and allow commercial use of homes owned by village collectives to support urbanization.

In a devastating incident, a bridge collapse in Shangluo, Shaanxi, China resulted in the tragic deaths of eleven individuals following heavy rains and flooding. The extreme weather conditions in China this summer, characterized by heavy rain in the east and south, and heatwaves in the north, highlight the impact of human-induced climate change. With China being the world's leading emitter of greenhouse gases, the link between such weather events and climatic shifts is evident. The severity and frequency of extreme weather events are on the rise due to these factors. The collapse of the highway bridge in Shangluo serves as a grim reminder of the vulnerability of infrastructure amidst changing climatic patterns. Efforts for rescue and recovery have been intensified, emphasizing the urgent need for preparedness in the face of escalating climate challenges.

Serbia and the EU have reached a deal on lithium extraction in the Jadar Valley, aiming to establish a value chain for e-mobility. Serbia plans to build a battery factory with support from Mercedes, Stellantis, KfW, and EBRD. The mined lithium will cover 17% of European demand. However, the mining project is controversial due to environmental concerns. China had also expressed interest in mining lithium in Serbia. In 2022, the Constitutional Court overturned the halt to the lithium project, despite protests. The project has sparked mass demonstrations in Serbia, with the opposition accusing President Vucic of undermining democracy and having close ties to Russia. Chancellor Scholz has promised Serbia the establishment of a battery factory as well.

During the Shanghai Cooperation Organisation summit in Kazakhstan, Chinese President Xi Jinping and Russian President Vladimir Putin solidified their strategic partnership by discussing deepening ties, expanding economic cooperation, and supporting Kazakhstan's bid to join the BRICS cooperation mechanism. The leaders reaffirmed their anti-Western alliance, criticized missile defense systems, and welcomed Belarus as a new member. Xi and Putin emphasized resisting external interference, the need for a multipolar world, and the use of national currencies. The summit highlighted tectonic shifts in global politics, the SCO's role in global security, and the expansion of China and Russia's influence in Central Asia.