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Can China Do More Than Condemn Israel?

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Iran suffered a heavy blow from Israel. During the first 12 hours of the attack, it even couldn’t fight back. In the wake of the sudden raid, there is increasing global discussion about potential mediators who might help de-escalate the situation. Some voices suggest that China, having played a key role in reconciling Saudi Arabia and Iran in 2023 and organizing a dialogue between Palestine fractions in 2024, could step into this new crisis as a peacemaker.

However, while China’s diplomatic achievements in the Middle East deserve recognition, it is a serious overestimation to assume that Beijing can—or should—be expected to resolve every conflict in the region. At least, not now. The Israel-Iran conflict is fundamentally different in scope, depth, and international entanglement. To understand why, it is crucial to examine both the capabilities and limitations of China’s role in Middle Eastern affairs.

The US Can’t Be Bypassed

China’s mediation in 2023 that led to the normalization of relations between Saudi Arabia and Iran was heralded as a diplomatic breakthrough. It showcased Beijing’s growing influence in a region long dominated by U.S. security interests. The agreement was emblematic of China’s preferred diplomatic style—low-key, pragmatic, and built on economic incentives and mutual respect for sovereignty.

However, the success of the Saudi-Iran rapprochement was made possible by a unique alignment of interests. Both Tehran and Riyadh had compelling internal reasons to reduce tensions. Saudi Arabia wanted a calm environment for Vision 2030 and economic transformation, while Iran was under pressure from domestic unrest and economic sanctions by the West. In this case, China acted more as a facilitator than an enforcer.

This experience cannot simply be applied to the current Israel-Iran conflict. First, the conflict between Israel and Iran is not just a bilateral rivalry but a multi-dimensional standoff involving proxy forces, ideological opposition, nuclear tensions, and deep historical hostility. Second, Israel is closely aligned with the United States, a global competitor to China, complicating Beijing’s ability to act as a neutral intermediary.

For decades, Israel has been a central pillar of U.S. policy in the Middle East—not just as a security partner, but as a forward position against the rise of any rival or “non-rival” regional powers such as Iran, Iraq, Egypt, and even Turkey and Saudi Arabia. In this context, any attempt by China to mediate would be interpreted in Washington not as a neutral peace initiative, but as a geopolitical maneuver that challenges American primacy in the region.

Even if China were to act with genuine impartiality, its growing involvement would inevitably be seen through the lens of great-power competition. A meaningful intervention cannot bypass the United States, and would likely trigger strong diplomatic push back. This turns the crisis from a bilateral issue or trilateral dialogue with China in it, into a four-party interaction—China, the U.S., Israel, and Iran—each with distinct agendas and red lines, further reducing the space for effective mediation.

Moreover, the domestic political situation within Israel adds another layer of complexity that China—or any external actor—must contend with. Prime Minister Benjamin Netanyahu has faced significant political turmoil in recent years, including corruption trials, mass protests over judicial reform and his Gaza policy, and divisions within his governing coalition. Many of his foreign policy decisions, including this attack on Iran, are widely seen as being driven more by short-term political calculations than by coherent national strategy. Even Washington post said so, too. This level of internal political instability makes it extremely difficult for external powers like China to engage in sustained, high-level diplomacy with reliable counterparts or long-term commitments.

Iran’s Willingness: A Prerequisite

Another factor that limits China’s potential role is Iran’s own willingness—or lack thereof—to accept Chinese mediation in a conflict where national survival and regional dominance are at stake. While Iran appreciates China as a strategic partner in trade, energy, and diplomatic support at the United Nations, it does not necessarily see Beijing as a military or security guarantor.

When mediating between Saudi Arabia and Iran, security guarantees were not necessary, as neither side truly believed the other would launch a direct attack. Moreover, Iran-backed forces in Yemen had even gained some advantage in their asymmetric conflict with Saudi Arabia and its allies. However, in the face of an increasingly unrestrained Israel, effective mediation is likely to require real security guarantees. Yet for China—already facing direct military pressure from the United States—offering such guarantees abroad would be an unaffordable luxury.

Moreover, the types of support China can offer—diplomatic pressure, economic aid, or even military technology—are only valuable if Iran sees them as credible and effective. In the future, what China can provide is not the security guarantee but a package of advanced defence system. This is where a critical reality intrudes: Iran may not have sufficient confidence in the practical utility of China’s military systems.

Although Iran’s air force has engaged in multiple overseas operations, its air fleet is outdated. Years of involvement in counter-terrorism campaigns against ISIS have also diverted its development focus away from achieving air superiority. Iran’s air defense systems, while more advanced and numerous than those of most countries—and supported by a domestic capacity to produce air-defense radars and missiles—still fall short when facing top-tier adversaries. The division of these systems between the Iranian Army and the Islamic Revolutionary Guard Corps further complicates coordination and effectiveness.

Modern warfare has evolved rapidly. Effective defense now requires advanced stealth fighters, advanced radar integration, electronic warfare, satellite data, and real-time coordination with air superiority assets—capabilities that Iran has not yet fully developed.

The recent aerial conflict between Pakistan and India demonstrated the effectiveness of China’s fighters, long-range air-to-air missiles, and integrated air defense and warning systems. Although the J-10CE is not China’s most advanced fighter, within a well-coordinated system, it successfully engaged and shot down India’s French-made Dassault Rafale using PL-15 missiles.

Of course, the Israeli Air Force is far more advanced and experienced than India’s, and this time it is authorized by the U.S. to deploy stealth F-35s. However, the reality remains that the People’s Liberation Army is preparing for the possibility of U.S. intervention in a future conflict over Taiwan. Countering the U.S.’s F-22s and F-35s is one of the central considerations in this scenario. If Iran aspires to effectively counter Israeli F-35s in the future, it will have very limited options other than China.

However, even Pakistan, a longtime Chinese ally with deep military cooperation ties, has shown caution in relying solely on Chinese defence system not many years ago. The fact should give pause to those who believe Iran will immediately trust Beijing to reshape its military-building decisions.

Regional Perceptions and Misconceptions

Another dimension often overlooked is how China is perceived by other regional actors. In much of the Middle East, China is respected as an economic power but not necessarily trusted as a security actor. It has no military alliances in the region, no history of enforcing peace, and only limited experience managing wartime diplomacy. Its military base in Djibouti remains its only overseas installation, and while it participates in joint exercises, China generally avoids entanglements in conflicts.

This low-profile strategy aligns with China’s broader foreign policy principles: non-interference, strategic patience, and economic focus. But these same principles limit its leverage in crises that demand rapid response, force projection, or hard security guarantees.

All of the perceptions are right. But the foundational idea of it is always misconceived. First, China itself suffered deeply under Western imperial powers for over a century. As a result, it harbors no desire to become a new hegemony in the Western mold—a stance that also aligns with its foundational communist ideology.

Second, China’s leadership draws lessons not only from its own long and turbulent history, but also from global historical patterns, particularly the rise and decline of Western powers. Perhaps the most important insight is that nearly every great empire ultimately collapsed due to overreach.

Providing security guarantees in regions thousands of kilometers away could mark a dangerous first step toward such overextension. In contrast, selling military systems—while somewhat strategic if including stealth fighters J-35 and the most advanced surface-air missiles—is far less risky and remains within the bounds of manageable influence.

This is not to say that China should remain entirely passive. Beijing can and should use its diplomatic weight to call for restraint, support ceasefire initiatives through the UN, and maintain backchannel communications with Tehran and potentially with Israel. It can also support reconstruction efforts, offer humanitarian aid if necessary, and promote regional economic integration as a long-term peace strategy.

But none of these measures should be mistaken for the kind of high-stakes crisis diplomacy needed to stop an active military confrontation. That type of intervention requires somewhat coercive tools that China currently lacks and even if it has, it could be unwilling to use.

In sum, the idea that China should intervene decisively in the Israel-Iran conflict overlooks the structural realities of modern geopolitics. While China’s growing presence in the Middle East gives it more diplomatic clout than ever before, it should not be overestimated.

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Macroeconomic consequences of asymmetric UAV attacks in Russia

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Today, the nature of asymmetric threats is undergoing a profound transformation, with their focus shifting increasingly toward economic centers. By mid-2026, the nature of asymmetric warfare within the borders of the Russian Federation entered a qualitatively new and critical phase.

An analysis of the Ukrainian unmanned aerial vehicle (UAV) strikes carried out in July 2026 reveals a deliberate shift in targeting. Moving beyond military installations and fuel-energy infrastructure, these attacks directly targeted civilian logistics networks and critical nodes of the macroeconomic infrastructure.

The primary objective of this strategic shift is to deplete the country’s internal resources, induce insurmountable disruptions in supply chains, and exert intense psychological pressure on the civilian population.

Large-scale, coordinated strikes on the distribution centers of Wildberries—Russia’s largest e-commerce platform and part of the RVB joint venture (formed by the 2024 merger of Wildberries and Russ)—became the symbol of this new phase of home-front vulnerability. The geographic scope of these attacks, spanning an unprecedented area from the Northwestern Federal District to Southern Russia and Crimea, exposed critical gaps in national industrial risk insurance mechanisms. Furthermore, this situation sparked severe legal disputes between platform economy giants and small businesses, compelling immediate intervention from both corporate executives and senior state officials.

Tracing the multi-layered consequences of the kinetic impacts resulting from these July attacks on the state’s digital and physical economy will shape the new architecture of civilian sector security.

The zenith of the logistical terror waged by Ukraine was recorded on the night of July 24, 2026, marking the most technically complex UAV attack inflicted on Russian Federation territory since the beginning of the year. According to data from the Ministry of Defense of the Russian Federation, domestic air defense systems detected and destroyed 571 fixed-wing Ukrainian UAVs that night.

Two points have become exceptionally critical here: saturating radar fields and the military “swarm” effect. In short, this event is the clearest indication that the enemy has transitioned to a tactic of overwhelming radar systems. At the same time, the “swarm” effect generated across a vast geographic expanse aims to rapidly deplete the ammunition of anti-aircraft missile systems and expose air defense positions deep behind the front lines.

The breadth of the targeted geography attests to the unprecedented scale of the operation. UAVs were neutralized over the Belgorod, Bryansk, Kaluga, Kursk, Leningrad, Novgorod, Oryol, Pskov, Ryazan, Smolensk, Tver, Tula, and Vladimir regions, as well as over Moscow, Krasnodar, the Republic of Crimea, and the waters of the Azov and Black Seas.

Such a dense dispersion of targets across a vast territory points to an attempt to paralyze transportation and logistics arteries within Russia’s European landmass.

In parallel with the mass deployment of UAVs, missile strikes were also conducted against civilian industrial enterprises. During the same period, a missile attack on a local enterprise in the Fileyka district of Kirov resulted in outright catastrophe, leaving 6 people dead and 32 employees injured with varying degrees of severity.

Following the incident, Regional Governor Aleksandr Sokolov stated that the situation required not only the evacuation of the wounded, but also large-scale interventions such as restoring water and power supplies and auditing the security of neighboring settlements. This combined approach—employing inexpensive kamikaze drones to degrade air defenses followed immediately by missile strikes on unprotected industrial zones—presents an entirely new threat paradigm for the civilian economy.

Systematic and sequential attacks directed at the facilities of a single commercial entity completely eliminate the possibility of coincidence. The strategic, macroeconomic, and psychological factors turning civilian commercial warehouses into critical vulnerabilities for an entire state rest upon four pillars:

  1. Role as the central circulatory system of domestic trade: Wildberries plays a critical role in the architecture of the modern Russian economy, connecting millions of consumers with tens of thousands of SMEs. Damage to distribution centers severe supply chains, triggering localized shortages of essential consumer goods and regional inflationary spikes. The primary goal is to destabilize the domestic market and create an artificial supply vacuum.
  2. Immense facility footprints and defense complexity: Spanning hundreds of thousands of square meters across the nation, these hangars constitute massive targets with high radar contrast. Unlike military bases, these commercial warehouses cannot possess their own air defense systems; placing every such facility under an air defense umbrella is physically impossible without compromising frontline systems.
  3. Social and psychological impact: In the eyes of the public, logistics centers symbolize daily economic stability. Black plumes of smoke visible from miles away, massive fires, and civilian casualties represent a hybrid terror tactic designed to transport an atmosphere of fear deep into peaceful cities and shake the internal socio-political climate.
  4. Magnified radius of economic impact: Inventory consumed by flames in these warehouses generally consists of stock purchased by merchants on credit. The destruction of commodity inventories holds the potential to cause mass vendor bankruptcies, bank loan defaults, and cascading layoffs across small businesses.

The events of July 2026 mark an irreversible shift in the threat landscape facing Russian commerce and macroeconomics. Attacks directed at Wildberries hubs in regions such as St. Petersburg, Moscow, and Tambov exposed the utter vulnerability of civilian logistics infrastructure.

Deploying relatively inexpensive unmanned aerial vehicles, the enemy is capable of inflicting tens of billions of rubles in direct damage, paralyzing the supply of essential goods, and triggering an acute social crisis in which hundreds of thousands of entrepreneurs face the threat of bankruptcy. According to Russian experts, the total cost of a single fire—similar to the Kotovsk incident on July 18—can range between 50 and 100 billion Rubles ($630 million – $1.2 billion USD).

Despite its massive capital reserves, corporate business was caught unprepared for military threats. The medium-term survival of the e-commerce economy depends on the state and the private sector uniting to engineer unprecedented systemic solutions. Establishing compensation funds and introducing mandatory risk-distribution mechanisms are critical steps that must be taken.

Logistics hubs will remain open targets unless a “state program for subsidized reinsurance of military risks” is established for the critical nodes of the civilian economy. In the future, it will not suffice for large enterprises merely to pour capital into the physical protection of infrastructure; they must also deeply decentralize their logistics networks to prevent the concentration of goods and capital at single points of failure.

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Egypt Under Fire: What Does the Damietta Strike Mean for Global Energy Markets?

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Dr. Ahmed Moustafa, Director & Founder, Asia Center for Studies & Translation, Egypt

For the first time since successive waves of escalation between Washington and Tehran began in recent months, an Egyptian liquefied natural gas (LNG) export facility has become a direct target.

In the early hours of Wednesday, 29 July 2026, at least one drone struck the floating storage unit Energos Winter, owned and operated by a U.S. company and sailing under the Marshall Islands flag, while it was moored at the Mediterranean port of Damietta. The impact ignited a fire that spread to a neighboring LNG carrier, GasLog Salem. Egyptian authorities confirmed that the blaze was brought under control without any reported casualties, while no group had claimed responsibility for the attack at the time of writing.

A Broader Context That Cannot Be Ignored

The incident did not occur in a vacuum. It came only hours after the United States Central Command (CENTCOM) announced that it had conducted joint strikes with Saudi forces targeting armed factions in Iraq accused of launching drone attacks against Saudi oil facilities. Tehran responded by warning against a “miscalculation,” at a time when the Middle East is still grappling with the repercussions of an earlier round of escalation that erupted on 8 July, when U.S. forces carried out strikes inside Iranian territory following an attack on a commercial vessel in the Strait of Hormuz. Iran retaliated with attacks targeting U.S. military bases in Bahrain, Jordan, Qatar, Kuwait, the United Arab Emirates, and the Sultanate of Oman.

Against this tense backdrop, Damietta appears to represent yet another link in the chain of regional escalation—but an exceptional one. For decades, Egypt has sought to keep itself removed from direct military polarization in the region, unlike several Gulf states that have increasingly become arenas of open confrontation.

At the same time, this interpretation does not entirely rule out the possibility of an indirect Israeli role, driven by hostility toward Egypt’s growing diplomatic influence in the Palestinian and Gaza files. Cairo has remained committed to advancing the two-state solution and to implementing the second and third phases of the peace roadmap agreed upon following the Sharm El-Sheikh Peace Summit last October. The Israeli government, led by Benjamin Netanyahu, has sought to obstruct these efforts. Netanyahu, who is the subject of arrest warrants issued by the International Criminal Court, is widely accused of bearing responsibility for committing genocide that, according to Palestinian authorities, have resulted in the deaths of approximately 73,000 Palestinian civilians since 7 October 2023.

Why Egypt?

Over the past two years, Egypt has steadily strengthened its position as a regional hub for liquefying and re-exporting natural gas. This growing role has been supported by its two LNG plants at Idku and Damietta, in addition to a network of pipelines linking the country with Israel and Cyprus.

This infrastructure—unmatched elsewhere in the Eastern Mediterranean in terms of combined liquefaction capacity and direct access to European and global markets—has transformed Damietta and Idku into critical gateways for Eastern Mediterranean gas, including increasing volumes of Israeli/Stolen Palestinian natural gas liquefied and re-exported through Egyptian facilities.

According to local reports, the Energos Winter alone was supplying approximately 450 million cubic feet of gas per day to Egypt’s national grid and was preparing to receive four additional cargoes during August.

This expanding role gives any attack on Egypt’s gas infrastructure significance far beyond the immediate incident itself. It threatens not only Egypt’s domestic energy supplies but also a supply chain upon which Europe has increasingly relied as part of its strategy to diversify away from Russian natural gas.

Who Was Behind the Attack? Open Scenarios

At the time of writing, no organization had officially claimed responsibility, leaving several possible interpretations.

The first scenario cautions against prematurely attributing responsibility to Iran or its regional allies. It argues that the ambiguity surrounding the incident—and the absence of any claim of responsibility—may itself be deliberate, allowing whichever actor carried out the attack to undermine Egyptian stability without incurring immediate political costs.

This possibility includes actors competing over Eastern Mediterranean energy routes, as well as local or transnational groups pursuing agendas unrelated to the U.S.-Iran confrontation. Egyptian officials themselves have adopted a notably cautious approach. Egypt’s Minister of Information warned against “rushing to accuse any party,” while a former official suggested that “certain actors are seeking to drag Egypt into the conflict,” implying that the attack may have been designed precisely to draw Cairo into a confrontation it has consistently sought to avoid.

A second scenario, Israeli Involvement or the Involvement of Israel’s Allies

This, in itself, remains a serious hypothesis that is reportedly being discussed in undisclosed investigative circles. The prevailing analyses, supported by pro-Israeli and pro-American narratives, have largely centered on suspicions directed at Iran or Iran-aligned actors within the context of the ongoing conflict, rather than at Tel Aviv. This is partly because Israel maintains an energy partnership with Egypt, making any attack on an Egyptian export terminal potentially detrimental to its own natural gas interests.

Nevertheless, this hypothesis—like all others—must ultimately be assessed in light of the findings of the official investigations, which are still underway. It is worth recalling, however, that repeated warnings have been voiced regarding the visits of Israeli Prime Minister Benjamin Netanyahu to Washington, as such visits have often been followed by heightened regional instability, as was argued after developments last December. According to this line of analysis, Netanyahu seeks to prolong the conflict with Iran in order to strengthen his domestic political position, secure his continuation in office, and advance Israel’s long-term strategic objective of neutralizing Iran and carrying out “Greater Israel.”

Within this framework, some analysts argue that there are broader efforts to weaken both Egypt and Türkey. They cite remarks attributed to a former Mossad operative during appearances on Israeli television, alleging that such a strategy would also serve to divert international attention away from the Gaza file and the question of Palestinian statehood—an issue on which Egypt has intensified its diplomatic efforts in recent days. According to this interpretation, creating indirect pressure on Egypt—the region’s most stable and secure state—could be viewed as a means of drawing Cairo into a wider regional confrontation.

A third scenario links the incident directly to the broader U.S.-Iran escalation. According to the article, The New York Times, citing two Iranian sources, reported that the attack may have been intended as a signal that global shipping and energy supplies could face deeper disruptions should Tehran or its allies choose to escalate further. The sources, however, did not identify the perpetrators or specify the launch point of the drone.

The Messages Behind the Attack

Regardless of who carried out the operation, the choice of target sends several important signals. An attack on what the article describes as the first American-owned energy asset on Egyptian soil would convey a message to Washington that not only its military installations in the Gulf, but also its economic footprint across the region, has become increasingly vulnerable.

For Egypt, which has consistently pursued a policy of strategic restraint and regional neutrality, the incident serves as a reminder that its geographic position—adjacent to some of the world’s most important energy and maritime corridors—no longer guarantees insulation from the conflicts unfolding around it.

For global markets, the attack suggests that the geographic scope of potential disruption is expanding beyond the Strait of Hormuz and the Arabian Gulf into the Eastern Mediterranean, increasing insurance premiums for shipping and critical energy infrastructure in a region long regarded as comparatively secure.

Egypt’s Official Response

The Egyptian government handled the incident with considerable caution and procedural professionalism, treating it primarily as a crisis-management operation rather than a political event.

The Cabinet confirmed that the fire had been caused by a drone attack without attributing responsibility to any specific party, emphasizing that investigations were continuing “to take all necessary measures to safeguard Egypt’s interests and national security.”

Prime Minister Mostafa Madbouly described the response as a test of the state’s crisis-management capabilities, praising emergency teams for successfully moving the burning vessels away from the port, thereby preventing what could have become a far larger disaster.

President Abdel Fattah El-Sisi addressed the incident publicly for the first time during a telephone conversation with Spanish Prime Minister Pedro Sánchez. During the call, he confirmed that the competent authorities were conducting a comprehensive investigation, warned of the dangers posed by the escalating regional situation, and stressed the importance of cooperation between Egypt and the international community to contain the crisis while adhering to peaceful solutions.

This measured diplomatic approach—avoiding direct accusations while emphasizing de-escalation—reflects Cairo’s determination not to be drawn into a broader regional confrontation despite having come under direct attack on its own territory.

Several Gulf states also expressed their full solidarity with Egypt and voiced support for its efforts to safeguard its national security and sovereignty.

The Impact on Global Energy Markets

The Damietta incident occurred at a time when global energy markets were already under considerable strain. Brent crude had been hovering around US$90 per barrel following the escalation of 8 July, while the European Title Transfer Facility (TTF) benchmark for natural gas had climbed above US$700 per 1,000 cubic meters for the first time since March.

Any additional disruption affecting an Egyptian LNG export terminal risks reinforcing this upward trend. Europe has increasingly relied on Egyptian liquefied natural gas as part of its broader strategy to diversify supplies away from Russian pipeline gas. Consequently, even a temporary interruption to Egypt’s export infrastructure could heighten market concerns over supply security.

The incident also adds to the geopolitical risk premium already factored into insurance costs for vessels operating in the Eastern Mediterranean. Higher perceived risks could translate into increased shipping and insurance costs for LNG carriers throughout the region, even if subsequent investigations conclude that the attack was an isolated event unlikely to be repeated.

What Should Be Done to Prevent Similar Incidents?

First, Egypt should further strengthen its short-range air defense capabilities and counter-drone systems around strategic energy installations along its Mediterranean coastline. This includes deploying advanced early-warning radar networks and cost-effective interception systems capable of neutralizing small unmanned aerial vehicles before they reach critical infrastructure.

Second, broader regional intelligence-sharing mechanisms should be expanded among Egypt and neighboring states—including Cyprus, Greece, and Türkiye—in recognition of the increasingly interconnected nature of Eastern Mediterranean gas infrastructure and the shared strategic importance of safeguarding regional energy corridors.

Third, given that the targeted floating storage unit is owned by a U.S. company, Washington should contribute to financing and modernizing the protection of such critical infrastructure rather than limiting its response to statements indicating that it is merely “monitoring the situation,” as the article characterizes the U.S. reaction.

Finally—and perhaps most importantly—reducing the broader cycle of regional escalation between Washington and Tehran remains the only sustainable guarantee against similar incidents in the future. Any purely technical or localized security measures can mitigate immediate risks but cannot eliminate them so long as the underlying geopolitical drivers of confrontation remain unresolved.

Conclusion

The Damietta incident serves as a stark reminder that geographic neutrality alone is no longer sufficient to shield a country that has become a pivotal node in the global energy network.

References:

1- https://www.bbc.com/news/articles/c39ez3klwmro

2- https://www.reuters.com/world/middle-east/egypt-confirms-drone-caused-fire-two-gas-vessels-damietta-2026-07-30/

3- https://www.reuters.com/world/middle-east/drone-hits-gas-storage-tanker-egypts-mediterranean-port-2026-07-29/

4- https://www.nytimes.com/2026/07/29/world/middleeast/ships-drone-strike-egypt.html

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Rising populist parties in Europe and liberalism

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Leon Trotsky, one of the foremost leaders of the October Revolution, defined fascism as the totalitarian organization of society by monopoly capital. Magnates of large-scale monopoly capital are acutely aware that their profits cannot be safeguarded in the absence of authoritarian political power. Thus, fascism finds its bedrock of support among capitalist forces, the grand bourgeoisie, monopoly capital circles, and major landowners. We are all too familiar with the calamities fascism wrought upon the world in the era preceding the Second World War.

The post–World War II era is often commemorated as the golden age of capitalism—a period characterized by robust growth rates and low unemployment. Real wages climbed, social rights expanded, demands for a welfare state remained vibrant, and the pursuit of a social state yielded tangible results. This era ultimately met its demise in the 1970s, undone by shifts in the regime of accumulation and structural economic crises.

Today, across Europe, political parties that could virtually be characterized as the direct successors to pre-WWII fascist movements are consolidating their electoral gains. Germany, France, and Italy serve as quintessential examples. These parties weaponize poverty, unemployment, and anti-foreigner, anti-immigrant, anti-Muslim, and anti-Middle Eastern sentiments, while capitalizing on the incompetence of traditional center-right and center-left parties and taking a deeply Eurosceptic, critical stance toward the European Union. They employ caustic rhetoric against the political elites who have dominated governance for decades. Receiving endorsement from both US President Trump and Russian leader Putin, they draw substantial support simultaneously from working-class constituencies—traditionally the bedrock of the left—and from grand capital circles. While monopoly capital quietly pats these populist movements on the back, it simultaneously winks at liberal-democratic and increasingly indistinguishable social-democratic parties that champion unbridled capitalism and aggressive liberalism. Beyond France and Germany, examples abound from Italy to the United Kingdom…

The interests of grand capital, which back populist regimes and advocate authoritarian governance, also champion localization. For the erosion of the national, the public, and the collective—alongside the attenuation of the central state and the elevation of the local—works decisively to the advantage of big capital.

Why?

Because of this:

Under liberalism, the state does not regulate the market; rather, the market regulates, directs, and subdues both the state and society. In a liberal order, the state is expected to act on behalf of capital and in favor of the market—intervening in politics, society, and the law, and enacting statutory frameworks strictly to this end. The state is tasked with engineering legal and institutional arrangements for the market’s account and benefit. Society is reduced to a market-society, wherein the citizen is reimagined as a consumer, a client, and an entrepreneur. Since competition is elevated as the supreme imperative, citizens themselves must become entrepreneurial and competitive—a posture the state actively promotes and incentivizes.

According to liberals, the state bears no obligation to shield its citizens from the pitiless mechanics of the market or the ferocity of unchecked capitalism. On the contrary, the state demands and encourages that citizens establish themselves as entrepreneurial actors within the market arena. Consequently, the state aligns itself with capital, operating at its beck and call. Hence, liberalism harbors an innate preference for unorganized, non-unionized, cheap labor. Wages are suppressed; agricultural subsidies are gutted to a minimum; and strikes are banned on the flimsiest of pretexts.

Because liberalism insists that the state be sculpted, organized, and driven according to market demands—allowing the market to command and direct the state—the liberal vision of the nexus between politics and economics, as well as politics and law, is deeply fractured. In their worldview, law must operate exclusively to the advantage of capital, acting as the vigilant sentinel for the inviolability of property rights. It must dismantle every obstacle standing in the way of free trade, unbridled competition, and the free market, while swiftly and severely penalizing any force that dares to impede them. To conform to the expectations and demands of capital: this is the primary imperative required of the law.

In sum, through its championing of identity politics, its reduction of the citizen to a mere client, and its liquidation of the state’s social character in order to place public power at the disposal of capital, liberalism stands fundamentally opposed to the social, the public, and the national. This is a truth that must be firmly impressed upon left-liberals, nationalist-liberals, and conservative-liberals alike.

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