News

Defending Dollar Supremacy May Be Next Phase of US–China Trade War

As the world’s reserve currency and primary medium for financial transactions, the U.S. dollar is the linchpin of the U.S.-led global order.

The U.S.–China trade war may be transitioning to a monetary standoff.

As U.S. President Donald Trump’s tariff policies kickstart a reshuffling of global supply chains and trade, Beijing is looking to another battleground: the Chinese yuan versus the U.S. dollar.

Last month, Pan Gongsheng, head of China’s central bank, reiterated the regime’s interest in promoting the internationalization of the yuan, also known as the renminbi, at the Lujiazui Forum, a leading economic forum in Shanghai.

Israel expanded its ground operations into the previously spared city of Deir al-Balah in central Gaza for the first time yesterday. Deir al-Balah is one of the area’s primary humanitarian hubs, where displaced Palestinians have been sheltered, and contains aid warehouses, health clinics, and critical water infrastructure. Nearly 88% of the Gaza Strip is estimated to have been evacuated or classified as military zones, with roughly 2 million Palestinians displaced.

 The Israeli military advance comes as officials believe some of the 50 remaining hostages, abducted during Hamas’ cross-border attack on Oct. 7, 2023, may be held in Deir al-Balah. At least 20 of the hostages are thought to be still alive. 

 Meanwhile, the UK, Canada, Japan, and 25 other countries issued a joint statement yesterday criticizing Israel’s approach to, and restrictions on, aid delivery in Gaza. The Hamas-run Gaza Health Ministry reported more than 1,000 Palestinians have died since late May while attempting to access aid, and the UN has said nearly 800 casualties have occurred en route to or at aid sites operated by the US- and Israeli-backed Gaza Humanitarian Foundation. 

Harvard Funding Hearing

Lawyers for Harvard University and the Trump administration appeared in federal court yesterday over whether Harvard can recoup roughly $2.6B in research grants. 

 The administration cut the grants in April after accusing Harvard of antisemitism; a letter last month from the Education Department found Harvard guilty of violating Jewish students’ civil rights (read here). Harvard says the cuts were retaliatory after the Ivy League rejected demands by a federal task force to end all diversity, equity, and inclusion programs and rework its faculty hiring and admissions process, among other changes. 

 Harvard is the world’s largest academic research institute with a $53.2B endowment, and is responsible for more scientific output than any other university. Since the Trump administration began cutting funding, the university has paused hundreds of research projects, including on tuberculosis, ALS, and chemotherapy. 

 The federal judge yesterday appeared poised to rule in Harvard’s favor. If so, President Donald Trump has pledged to appeal.