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U.S. fears China attack on Taiwan

The Biden administration has concluded that China "is flirting with the idea of seizing control of Taiwan as President Xi Jinping becomes more willing to take risks to boost his legacy," the Financial Times reports.                     

Why it matters: An invasion of Taiwan, the self-governed island claimed by Beijing, would force the U.S. to decide whether to go to war with China to defend an implicit ally.


  • The recent conclusion by the Biden administration is based on Chinese behavior during the past two months a senior U.S. official told FT.
  • After a show of force by Chinese bombers off Taiwan just after President Biden took office, the State Department said: "We urge Beijing to cease its military, diplomatic, and economic pressure against Taiwan."

Adm. John Aquilino, nominee to head U.S. forces in the Pacific, warned the Senate Armed Services Committee this week that the threat to Taiwan "is much closer to us than most think," CNN reported.

Adm. Philip Davidson, current head of the U.S. Indo-Pacific Command, testified earlier this month that the Chinese military is building up offensive capability, making the threat to Taiwan "manifest during this decade — in fact, in the next six years."

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U.S. consulting with U.K., Romania and Israel on response to alleged Iran attack

The British and Romanian governments summoned the Iranian ambassadors to London and Bucharest on Monday to protest last week's drone strike on an oil tanker in the Gulf of Oman, which both countries have attributed to Iran.

The latest: U.S. Secretary of State Antony Blinken said in a briefing Monday that the U.S. is consulting with the U.K., Romania and Israel to prepare a collective response to the alleged Iranian attack.

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Border arrests top 1 million after setting 20-year record for June

U.S. Border Patrol has made more than 1 million arrests of migrants attempting to cross the U.S.-Mexico border since last October, after June set a 20-year record for that month, according to government data released on Friday.

Why it matters: The surge in migrants attempting to cross the border has continued — inciting Republicans to blame the Biden administration, while Democrats and immigration advocates pressure the president to undo strict Trump-era enforcement policies.

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Inequality decreased for most of 2021 but picked up in May, index shows

Data: Morning Consult/Axios Inequality Index; Chart: Axios Visuals

The coronavirus pandemic has rocked the U.S.economy in myriad ways. One of the most important has been the impact on economic inequality, which has been spotlighted by top economists, including Fed chair Jerome Powell.

Why it matters: It is a growing subject of discussion among everyday Americans and carries weight among economists, namely because persistent or increasing inequality can cast doubt on the fairness of America’s economic system and undermine the sustainability of economic growth.

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Retailers don't know whether the pandemic comfy era is ending

There are early signs that "sweatpants nation"is shrinking as Americans emerge from lockdown, but it's unclear how far back to normal the pendulum will swing.

Why it matters: Retailers don't know whether the pandemic comfy era has forever changed what we want to wear. Billions of dollars worth of retail inventory is on the line.

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