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From Great Power Competition to Strategic Stability: A New Orientation of China-US Relations

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U.S. President Donald Trump paid a state visit to China from May 13 to 15, 2026. For the current turbulent international order, this summit between the two great powers of China and the United States is of extraordinary significance, bringing a degree of certainty to an uncertain world.

A major focus of domestic and international attention is that during his visit to China, Trump appeared far more rational, restrained and pragmatic than he did in Europe. In Europe, he often treated allies with emotional outbursts, unilateral pressure and even public mockery; in Beijing, by contrast, he moderated his tone, chose his words carefully, stressed respect for China and a willingness to cooperate, demonstrating a greater sense of realpolitik and diplomatic propriety.

During his tour at Zhongnanhai, he even remarked that if he gets used to this place, he might not want to leave. He also expressed hope of visiting China again in six months. All this points to productive communications between the two sides. The most important outcome was their agreement to build a constructive China-U.S. relationship of strategic stability. This is clearly a major new development and transformation in China-U.S. relations, which will undoubtedly send strong reverberations, profoundly shaping not only the societies of both nations but also the global strategic landscape and the existing structure of international relations.

What Is the “China-US Constructive Relationship of Strategic Stability”?

Although no joint communiqué was issued nor press conference held following President Trump’s visit to China, the Chinese side nonetheless spoke highly of the trip, describing it as a “historic meeting”. The reason lies in the two sides’ agreement to build a constructive China-U.S. relationship of strategic stability.

Strategic stability originally refers to a state among nuclear-armed powers where mutual deterrence prevents nuclear war. The concept emerged from U.S.-Soviet arms control during the Cold War and now also describes peaceful relations between major powers. In the current China-U.S. context, “strategic stability” is understood broadly to mean that the two countries can maintain a stable framework in their most crucial interactions.

How should we understand the new positioning of a “constructive relationship of strategic stability”? During the meeting on May 14, President Xi Jinping put forward the “four should-bes” to define this new framework: It should be positive stability with cooperation as the mainstay, healthy stability with competition kept within bounds, normal stability with differences under control, and durable stability with peace in prospect. Each dimension of “stability” leaves considerable room for interpretation.

The first dimension: cooperation as the mainstay. Over the past decade, both the Trump administration’s launch of two trade wars and the Biden administration’s building of a “small yard with high fences” and imposing high-tech export controls on China have created massive disruptions to the normal operations of enterprises in both countries and to bilateral trade. As the world’s two largest economies, frequent frictions caused by U.S. policies are clearly abnormal and detrimental to the economic development of both nations and the world. It is therefore essential to return to a tone centered on cooperation.

The second dimension is well-regulated competition. The United States is prone to the Thucydides Trap mindset and harbors deep misgivings about China’s rise and development. Nevertheless, China has no intention of engaging in zero-sum games where one side wins and the other loses. From Chinese perspective, competition between nations is inevitable. Yet the world today faces the fundamental task of expanding common interests rather than dividing existing gains. We embrace sound competition and reject vicious rivalry; otherwise, the world risks repeating the tragedies of World War I, World War II and even the Cold War.

The third dimension is manageable differences. Disagreements are inevitable in China-U.S. interactions. However, if economic, trade, technological, cultural and academic exchanges are all politicized and securitized, even ordinary bilateral issues will escalate into strategic confrontations. A mature major-country relationship does not mean the absence of disputes, but the ability to keep dialogue intact even after disagreements arise.

The fourth dimension is foreseeable peace. It targets the most fundamental and bottom-line principle in China-U.S. relations: the two countries must avoid war. Today’s China-U.S. relationship is no longer a simple bilateral tie between two isolated nations, but two core pillars embedded in the global industrial chain, financial system, technological system and security architecture. Therefore, foreseeable peace requires strategic self-awareness from both sides: competition must not escalate into conflict, and confrontation must never lead to war. Neither side shall gamble the future of 1.4 billion Chinese people, over 300 million Americans and the entire world on an unaffordable conflict for short-term political gains.

These signals released from this summit indicate that both sides are striving to shift their relations from confrontation to a new phase featuring controllable competition and pragmatic cooperation.

The Constructive Significance of the New Positioning of China-U.S. Relations

These “four should-bes” are not a one-sided expectation that China places on the United States, but rather a mutual commitment between the two countries. The definition put forward by the Chinese leader has received high recognition from the U.S. side. Therefore, there is good reason to believe that this new framework will serve as the strategic guideline for China-U.S. relations over the next three years, which will cover Trump’s second term, because it benefits both nations.

For China, what matters more are the strategic gains from this meeting: namely, persuading the United States to embrace a framework of constructive strategic stability. China’s paramount strategic goal is to achieve the great rejuvenation of the Chinese nation, which demands a stable external environment. Yet since Trump’s first term, China has faced containment by the United States and its allies across trade, technology, finance, and geopolitics, posing severe challenges to its development. China has long sought to transcend the Thucydides Trap. While it does not shy away from competition and stands ready to uphold its interests in economic and trade frictions with the U.S., it has no desire for strategic rivalry. Instead, China aims to steer bilateral relations back to a path of rationality, communication, and non-confrontation, so as to secure a stable external environment for economic growth.

For the United States, it places greater emphasis on the pragmatic benefits of this visit. The U.S. signaled its intention to visit China as early as last year, aiming to leverage its perceived victories over Venezuela and Iran to pressure China. However, the war in Iran has yet to end, and it has produced significant blowback against the U.S., exposing few critical realities to the world:

First, the U.S. cannot defeat Iran, and a power unable to subdue Iran has no credible path to conquering China.

Second, although China is the world’s largest energy importer, it faces no imminent risk of energy shortages.

Third, surging domestic inflation and oil prices in the U.S. have stoked public discontent, undermining Trump’s prospects in the midterm elections.

Fourth, the U.S. failed to defeat China in the trade war, instead hitting a wall. In February, the U.S. Supreme Court ruled that the massive tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were illegal.

Fifth, a series of events like the maiden flight of China’s sixth-generation fighter jet, the May 7th India-Pakistan air battle, the September 3 military parade, and the U.S.-Israel-Iran conflict have convinced the U.S. that military coercion is unlikely to bend China to its will.

From the U.S. perspective, a reality-based assessment compels recognition of China’s international standing. Moreover, China’s neutral stance in multiple global crises has led the U.S. to view it as a rational, predictable, and negotiable strategic rival rather than an entirely uncontrollable challenger.

For the world at large, the realization of strategic stability in China-U.S. relations also contributes to global peace and stability. In this era of major-power games, world development and security are confronted with numerous challenges: rising global unrest and armed conflicts, sluggish economic growth mounting pressures on people’s livelihoods, stagnant technological progress and retrogressive international cooperation, a fractured international order and unbalanced rule-based systems, deteriorating diplomatic atmospheres and setbacks to peaceful diplomacy, ineffective governance over global issues, and small and medium-sized countries being reduced to pawns in great-power contests. The gravest crisis facing the world today lies not in troubles plaguing individual nations, but in the prevalent global state of instability, uncertainty and unpredictability. As the world’s two largest economies, China and the United States bear the responsibility to deliver stable expectations for the whole world.

The Future of China-U.S. Relations

In the short term, the proposal of a constructive strategic stability relationship between China and the United States means there will still be opportunities for positive interactions over the next six months. President Xi Jinping has agreed to pay a visit to U.S. in September 2026, and there is a high probability that the two leaders will meet again at the APEC Summit in Shenzhen and the G20 Summit in the United States again. In other words, the two countries will continue to maintain engagement, intensify cooperation on the basis of managing differences, and foster a favorable atmosphere for multiple rounds of head-of-state diplomacy in the period ahead.

Nevertheless, the “constructive strategic stability relationship between China and the United States” still faces an even bigger test that will determine its true substance. The Taiwan issue is the most sensitive and core issue in China-U.S. relations, representing China’s vital core national interest. This is a bottom line and red line that cannot be traded or trampled on.

On board Air Force One returning to the U.S. after his China visit, Trump laid out his latest “Four Don’ts” on Taiwan: Don’t want anyone to pursue independence; Don’t want to send troops thousands of miles to fight a war; Don’t become a backer for “Taiwan independence”; Don’t easily commit to arms sales to Taiwan.

This statement does not represent a shift from strategic ambiguity to strategic clarity. While the first three “Don’ts” can be seen as a form of strategic reassurance to China, the deliberate ambiguity on arms sales preserves the core tool of “using Taiwan issue to contain China”. In short, Trump has not abandoned the “Taiwan card” during this visit, and he still seeks to use it as a tool to constrain China. Accordingly, whether Trump approves a US$14 billion arms sale to Taiwan, which is the largest single arms deal in U.S. history, will not only test U.S. political commitments but also directly determine whether major conflict between China and the U.S. could break out in the future.

Though this visit facilitates the realization of strategic stability between China and the United States, the structural contradictions between the two sides in ideology, development models, technological competition and geopolitical strategies remain unresolved. In line with the logic of strategic defense, strategic stalemate and strategic counteroffensive, China-U.S. relations have entered the phase of strategic stalemate. Yet how long this phase will last remains uncertain. It is likely to be extremely protracted, spanning two to three decades or even longer until the two countries attain balanced strength across all fields.

China harbors no intention of challenging America’s dominant status, while the U.S. can hardly abandon its attempt to contain China. Hence, during this strategic stalemate, bilateral relations may witness intermittent frictions and truces, with neither side able to subdue the other. Both sides have to cooperate amid competition, which will become the new normal of bilateral ties.

In any case, the vision of a constructive strategic stability relationship is a bitter yet effective remedy proposed by China for China-U.S. relations and global peace. It does not cure minor ailments, but targets the entrenched fatal malady of hegemonic anxiety. This prescription requires joint adherence by both sides. China has demonstrated utmost sincerity and steadfast resolve. Now the ball is in America’s court, especially in the hands of decision-makers in Washington. Will it lay aside arrogance and embrace an equal, stable and sustainable new framework of bilateral relations, or remain trapped in the illusion of acting from a position of strength and rush headlong down the path of confrontation? It is hoped that this Beijing summit will mark a fresh starting point for bilateral ties. If both sides fully implement the constructive strategic stability relationship, reduce emotional decisions and excessive securitization tendencies, and step up pragmatic communication and tangible cooperation, it will prove a blessing for China, the United States and the entire world.

*Dr. Yang Chen
Associate Professor and Executive Director, Center for Turkish Studies, Institute of Global Studies, Shanghai University

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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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