Asia
India plans to increase water drawing from Indus river
India plans to significantly increase the amount of water it draws from a major river that feeds farmland in Pakistan’s lower basin. This move, according to four people familiar with the matter who spoke to Reuters, is part of retaliatory measures holding Islamabad responsible for a deadly attack on tourists in April. The Indus Treaty has still not come into effect.
Delhi suspended its participation in the 1960 Indus Waters Treaty, which regulates the use of the Indus river system, after an incident in India’s Kashmir region where 26 civilians were killed, an event India described as a terrorist act. Pakistan denied involvement, but although the two nuclear-armed neighbors signed a ceasefire agreement last week after the most severe clashes in decades, the treaty has not re-entered force.
Following the April 22 attack, Indian Prime Minister Narendra Modi instructed officials to speed up the planning and execution of projects on the Chenab, Jhelum, and Indus rivers, which are three water sources within the Indus river system allocated for Pakistan’s use.
Two people said one of the significant plans being discussed is to double the length of the Ranbir canal on the Chenab river, which extends from India to Pakistan’s agricultural heartland, Punjab. The canal was built in the 19th century, long before the treaty was signed.
India is permitted to draw a limited amount of water from the Chenab river for irrigation purposes, but the expanded canal, which experts say could take years to build, would increase India’s water drawing capacity from approximately 40 cubic meters per second currently to 150 cubic meters per second.
Details of the Indian government’s discussions regarding the expansion of Ranbir had not been previously reported. The discussions began last month and are continuing after the ceasefire, said one of the individuals.
The ministries of water and external affairs, as well as Modi’s office, did not respond to Reuters’ questions. NHPC, India’s state-owned hydroelectric company which carries out many projects in the Indus system, also did not respond to an email requesting comment.
In a fiery speech this week, Modi said, without referring to the treaty, “Water and blood cannot flow together.” Indian Ministry of External Affairs spokesperson Randhir Jaiswal told reporters on Tuesday that India would “suspend the treaty until Pakistan credibly and irreversibly denies its support for cross-border terrorism.”
Pakistan’s ministries of water and foreign affairs did not respond to requests for comment. Foreign Minister Ishaq Dar told lawmakers this week that the government had written a letter to India stating that the suspension of the treaty was illegal and that Islamabad considered the treaty to be in force.
Islamabad had announced after India suspended the treaty in April that it would consider “attempts to stop or divert the flow of water belonging to Pakistan” as “an act of war.”
Approximately 80% of Pakistan, including nearly all hydroelectric projects serving its 250 million population, is dependent on the Indus river system.
David Michel, a water security expert at the Washington-based Center for Strategic and International Studies, said that Delhi’s efforts to build dams, canals, or other infrastructure facilities that would block or divert significant amounts of water flow from the Indus river system to India would “take years to materialize.”
However, Pakistan experienced a preview of the pressure it could face from India: After India began maintenance work on some Indus projects, water levels at a key intake point in Pakistan briefly dropped by up to 90% in early May.
The Indus system originates near Lake Mansarovar in Tibet, flows through some of the world’s most geopolitically tense regions, passes through northern India and eastern and southeastern Pakistan, and empties into the Arabian Sea.
The treaty is considered one of the world’s most successful water-sharing agreements, having survived several major wars and long-standing tensions between India and Pakistan.
Islamabad had previously opposed several Indian projects in the Indus system, while Delhi had stated after the Kashmir attack that it had been trying to renegotiate the treaty since 2023 to take into account population growth and the increasing need for clean hydro energy.
The treaty largely limits India to building low-impact hydroelectric projects on the three rivers allocated primarily to Pakistan. Delhi is free to use the waters of the other three rivers, which are tributaries of the Sutlej, Beas, and Ravi rivers, as it wishes.
According to two government documents seen by Reuters and interviews with five people familiar with the matter, in addition to the plans to expand the Ranbir canal, India is also considering projects that would reduce the amount of water flowing from the rivers allocated to Pakistan to that country.
An undated note prepared by a state company for officials evaluating irrigation plans stated that water from the Indus, Chenab, and Jhelum rivers could be “distributed” to rivers in three northern Indian states.
One of the individuals, who said that this document, details of which had not been previously made public, was prepared for discussions with energy ministry officials after the April 22 attack, also stated that Delhi had prepared a list of hydroelectric projects in its Jammu and Kashmir region aiming to increase the current capacity of 3,360 MW to 12,000 MW.
Delhi also prepared a list of hydroelectric projects in the Jammu and Kashmir region. These projects aim to increase the current capacity of 3,360 MW to 12,000 MW.
The list prepared by the Ministry of Power and seen by Reuters was undated. A person familiar with the document said the list was prepared before the Kashmir incident but was actively being discussed by government officials.
According to two people close to the matter, the planned projects include dams, which would be a first for India in the Indus river system, capable of storing large amounts of water.
According to the Ministry of Power document, India has identified at least five potential storage projects, four of which are located on tributaries of the Chenab and Jhelum rivers.
Pakistan’s Finance Minister Muhammad Aurangzeb told Reuters on Monday, “Water should not be used as a weapon. We do not want to consider any scenario that does not take into account the re-entry into force of this agreement.”
Asia
Pentagon plans covert spy ring for economic war on China, report says
The US Department of War (Pentagon) is reportedly planning to establish an extensive network of deep-cover agents to wage economic warfare against China and other adversaries of the US.
According to a report by The Washington Post citing six sources familiar with the initiative, the plan has not yet been put into effect. The newspaper reported that the initiative remains at the planning stage. The Pentagon, however, denies that any such initiative exists.
The report said the operatives would pose as entrepreneurs or private sector employees while concealing their ties to the US government. The network’s mission would be to gather economic intelligence and counter China.
The programme is led by Tom Rakusa, who spent 39 years at the CIA. Rakusa serves as a senior adviser to Deputy Secretary of Defence Steve Feinberg.
The proposed spy network is seen as part of a broader policy by the Donald Trump administration to sharpen economic competition with other countries.
The US is already resorting to tariffs, export controls, and investment in strategic sectors, alongside expanding its economic intelligence gathering.
According to The Washington Post, the new initiative demonstrates the Pentagon’s growing influence under the Trump administration. The department is currently seeking a record budget of $1.5 trillion.
Trade war flares up again with Trump’s return to the White House
The trade friction between the US and China flared up again following Donald Trump’s return to the White House. In April 2025, Washington raised tariffs on Chinese goods to as much as 145%, and Beijing retaliated with tariffs of up to 125%.
In May, US Secretary of State Marco Rubio described China as the primary geopolitical challenge facing Washington. Rubio said that to avoid war, the two sides needed to manage their conflict of interests.
In July, Chinese expert Zheng Yongnian did not simply warn that underestimating the US could prove to be a “fatal mistake”; he stated it explicitly.
According to Zheng’s assessment, the US maintains its primacy through the role of the dollar, its military superiority, and its technological advantages.
Even so, the two sides agreed in June to declare a truce and lower tariffs. In autumn 2026, the US and China extended their trade truce until 10 January 2027.
US Treasury Secretary Scott Bessent said the extension would give the parties more time to discuss economic issues.
Trade deals do not eliminate the strategic contradictions between the two countries. Financial Times columnist Rana Foroohar likened the race between the two nations for commercial, technological, and geopolitical influence to the 19th-century “Great Game” between the Russian and British empires.
Foroohar cited China’s standing in shipbuilding and commercial maritime transport, as well as its expanding footprint in overseas ports, among its key advantages.
Asia
Japan plans curbs on short-term home sales to cool urban prices
Japan’s ruling Liberal Democratic Party (LDP) plans to restrict short-term property trading to rein in surging home prices in major urban centres, particularly Tokyo.
Led by Prime Minister Sanae Takaichi, the party aims to make support for working households a core priority ahead of local elections scheduled for April next year.
The LDP’s research commission on housing and land policy met on Wednesday to discuss the issue.
According to a report by the Nikkei Asia newspaper, Commission Chair and LDP lawmaker Midori Matsushima said at the opening of the meeting: “Prices of newly built condominiums across Tokyo’s 23 wards have doubled over the past decade. We must work on measures ensuring that people who wish to live in these homes can actually afford to buy them.”
Homeownership in the capital has become virtually unattainable for broad segments of the population. According to data from the Real Estate Economic Institute, the average sale price of a newly built condominium in Tokyo’s 23 wards rose %18.5 in fiscal 2025 compared with the previous year, reaching 137.84 million yen (around $872,000).
Meanwhile, statistics from the Ministry of Labour show that the average annual income of a full-time worker in the capital remained at 6.78 million yen in fiscal 2025. This widening gap between incomes and residential property prices is directly shaping political priorities.
During its campaign for the House of Representatives election in February, the LDP pledged to curb speculative transactions across metropolitan Tokyo and other regions. Earlier this month, a party project team focused on policies concerning foreign nationals also submitted a recommendation urging the government to introduce immediate tax measures against rising home prices.
Under current legislation, profits realized from properties sold within five years of acquisition are classified as “short-term capital gains”. These returns face a tax rate approaching %40, including income tax and local inhabitant tax.
Although this rate is twice the approximately %20 levied as “long-term capital gains” tax on properties held for more than five years, several party members argue it remains insufficient to deter speculation. Calls to tighten the framework may be considered as part of the annual tax reform package to be drafted in December alongside the LDP’s coalition partner, the Japan Innovation Party.
The ruling bloc wants to present concrete housing pledges to voters heading to the polls in April across numerous urban centres, including 22 of Tokyo’s wards where local assembly terms expire.
“We need to support families with children, who are typically at the stage of purchasing a home,” a senior LDP official said.
Opposition parties are also preparing alternative proposals that target not only prospective homebuyers, but also residents forced into the rental market by high property prices and now affected by escalating rents.
Tax steps take precedence over limits on foreign buyers
Several countries seeking answers to housing affordability pressures have imposed direct restrictions on foreign purchasers. In South Korea, real estate policies played a major part in the declining public approval ratings of President Lee Jae Myung.
In August 2025, authorities in Seoul introduced an approval requirement for foreign nationals buying homes in the capital and adjacent areas, while also mandating that buyers reside in the properties for at least two years.
Canada and Australia have enacted temporary bans on foreign residential purchases, while Singapore levies a %60 additional stamp duty on foreign buyers.
The role of overseas investors in Japan’s property market also drew debate during the February election. However, restrictions aimed directly at foreign nationals are viewed as potentially conflicting with international trade and services agreements.
Consequently, rather than imposing restrictions based on the nationality of buyers, the government is discussing tax measures aimed at speculative real estate deals, such as rapid resales.
Fears that sharp market measures could shake regional banks
Concerns have also surfaced that aggressive steps to force down prices could harm the wider national economy.
A senior LDP tax official cautioned that a steep drop in land prices could weaken local financial institutions, warning: “We must consider the impact on regional banks.”
The real estate sector accounts for roughly %18 of total lending by Japanese banks. This proportion sits well above the %10 level recorded during Japan’s bubble economy of the mid-to-late 1980s.
At certain regional banks, property lending accounts for nearly half of total loan portfolios.
According to March 2025 data from the Financial Services Agency, approximately one-quarter of all loans extended by regional banks to the real estate sector are concentrated directly in Tokyo’s five central wards.
Buoyant asset valuations, supported in part by rising stock indices, have underpinned strong public approval for the Takaichi administration. Observers note that property interventions designed to cool the market could drag down equity prices and weaken the government’s standing.
A senior official on the LDP research commission stressed that decision-makers must act with caution regarding the scope and timing of any measures intended to bring price increases under control.
Asia
South Korea plans $120B spend on eight US nuclear power plants
South Korea will spend $120 billion to construct eight nuclear power plants in the US under an agreement that provides for $350 billion in investments in exchange for lower tariffs.
The South Korean government also announced that Seoul and Washington will begin examining a liquefied natural gas (LNG) project in Alaska comprising a large-scale pipeline to transport natural gas from the north of the state to the south, alongside the construction of an LNG terminal for exports overseas.
Seoul stated that a decision regarding the LNG project will be made following a commercial feasibility study. However, US President Donald Trump said that South Korea would invest $54 billion in the project, pointing to an apparent lack of full coordination between the two sides on the matter.
Trade and Industry Minister Kim Jung-kwan said in a statement: “This announcement opens a new horizon of cooperation where the two countries join forces to develop joint commercial ventures in strategic areas directly linked to economic security and future sectors such as artificial intelligence, nuclear energy, and LNG.”
“We will adhere to the principle of prioritising national interests and investing solely in commercially viable projects,” Kim said.
Speaking at the White House, Trump characterised South Korea’s plans as “one of the largest energy infrastructure investments in American history”.
The announcement followed a meeting between Trump and South Korean President Lee Jae Myung roughly one year ago at the APEC Economic Leaders’ Meeting held in South Korea, where they agreed on the creation of a $350 billion investment fund.
Under that agreement, $150 billion was allocated to the shipbuilding sector and $200 billion to other sectors. In return, the US announced it would reduce tariffs imposed on goods imported from South Korea from 25% to 15%.
Under the nuclear power project, South Korea’s state-controlled utility will build two plants in the US, while Pennsylvania-based Westinghouse Electric will construct six plants.
According to the South Korean government, this will mark the first instance in which a foreign country builds its own nuclear power plants in the US.
South Korean firms are also evaluating the possibility of acquiring a stake in Westinghouse as part of negotiations over sharing profits generated by the project.
South Korea additionally announced that it will build a $22.3 billion natural gas-fired power plant in Texas with a capacity of 6,472 megawatts.
The facility will be designed to supply electricity directly to nearby data centres. The project’s first phase is targeted to begin commercial operations in 2029, with full-capacity operations slated for 2032.
Seoul also disclosed that it had agreed to allow the US to receive 50% of the profits generated by the projects until South Korea recoups all of its investments.
After South Korea fully recovers its total investment amount, 90% of the profits will go to the US.
-
America2 weeks agoHow will Brazil’s presidential runoff work?
-
Europe2 weeks agoBerlin Left Party backs Israel’s right to exist for coalition pact
-
Diplomacy2 weeks agoThe West is preparing for war not with Russia, but with its own people, French analyst Georges Kuzmanovic insists
-
Russia2 weeks ago71 EU lawmakers demand closure of Russian Houses in 15 member states
-
Europe2 weeks agoMI6 investigates potential leaks after former BND chief is detained
-
Russia2 weeks agoUS and Russian figures discuss American stake in Nord Stream lines
-
Russia2 weeks agoDrone strike shuts down Yandex data centre in Russia’s Ryazan region
-
America1 week agoTrump weighs presidential memorandum to cut surging US diesel prices
