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Xi Jinping asks the world to choose ‘war or peace.’ Which direction is China headed?

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Beijing
 — 

The optics could not have been more stark as Chinese leader Xi Jinping arrived at a massive military parade in Beijing flanked by Russian President Vladimir Putin and North Korean leader Kim Jong Un – with some two dozen other leaders including from Iran, Pakistan, Belarus and Myanmar trailing behind.

Jumbotrons at Tiananmen Square beamed the image to the 50,000 people gathered under the beating Beijing sun to witness the spectacle, many waving small Chinese flags, while state media transmitted it to televisions across China and the world.

Many watching in capitals across the West, including Donald Trump, thought the messaging was clear: China is deliberately provoking the US and its partners.

“Please give my warmest regards to Vladimir Putin, and Kim Jong Un, as you conspire against The United States of America,” the US president wrote to Xi on social media as legions of troops goose-stepped their way through central Beijing.

For anyone who heard the echoing shouts of the thousands of well-drilled troops and saw the hulking nuclear-capable missiles, underwater drones and warplanes gliding down Beijing’s Avenue of Eternal Peace, there’s no question that Xi was orchestrating his most forceful showing yet of China as an alternative global leader – with both military might and geopolitical heft.

China has long touted its “peaceful” rise and decried the “warmongering” US. But the parade, commemorating the end of World War II, was undoubtedly intended to telegraph the rapid advancement of the world’s largest military, and signal Xi’s growing ability to project hard power on the world stage.

A live mic that picked up Xi and Putin discussing how people may soon live to 150 through medical advances hinted at the durability both see for their own positions driving a global transition of power, as perhaps did Kim’s decision to bring his daughter and potential successor with him on his green train to Beijing.

Behind the carefully choreographed pomp was a key message – that Xi aims for a world where the US and the West don’t get to set the rules – and a question: what does that mean for the US and the world?

For Xi, setting Kim and Putin by his side was a forceful way to underscore his belief that the existing international system led by the US is to blame for current conflict and confrontation, not the men seated around him.

“Only when all countries and nations treat each other as equals, coexist in peace and support each other” can they “uphold common security” and “eradicate the root cause of war,” Xi said during a speech carried by loudspeaker across the parade grounds on Wednesday.

That root cause is “Cold War mentality, bloc confrontation and bullying practices,” Xi and his officials have said time and again, using Beijing’s code to describe American foreign policy.

China's President Xi Jinping (center), North Korea's leader Kim Jong Un (right) and Russia's President Vladimir Putin arrive for a reception following a military parade on September 3.

Earlier in the week, in the port city of Tianjin, the Chinese leader closed a summit of regional leaders including Indian Prime Minister Narendra Modi by unveiling a “global governance initiative” – one pillar of Xi’s broader plan to reshape the way the international system is run and make it more “democratic.”

The plan, which supports the United Nations, could have broad reach, according to Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing. “Global governance is not just focused on (security) but also finance – SWIFT system, sanctions, trade, AI governance, ocean governance, climate change … and we need to make the Global South have more say and power (at the UN),” Wang said.

Observers say Xi’s initiative is meant to both stand as a rallying point for countries that feel squeezed by an international system they see as unfairly dominated by the West – and help China dilute US power across a range of areas, by sharing it across more China-friendly countries.

That could help Beijing shape an international system where national development trumps any concept of individual human rights and no US-led alliance can hem in China’s ambitions. It’s an arrangement that could well benefit China’s designs on the island democracy of Taiwan, which Beijing claims and has not ruled out taking by force.

The one-two punch of Xi’s summitry followed by his parade over the past week appeared carefully calibrated to send a message: while China builds out its influence and soft power, it’s also growing the hard power that could back it if needed.

And even as China emphasizes that its military is for defensive purposes, its show of strength on Wednesday has given analysts around the world a clear look at the extent of its offensive capabilities and its vast capacity to produce arms.

Members of the Chinese military hold flags during a military parade in Beijing's Tiananmen Square on September 3.

The arsenal of missiles on show could enable China to strike targets across the world and evade advanced missile defenses with hypersonic technology; its vanguard of combat drones as well as laser weapons could also make it challenging for adversaries to block the advances of Chinese forces in the region in the event of an offensive.

And it was against a backdrop of this bristling display that Xi looked out into the crowds before him in Tiananmen Square and called on humanity to make a simple choice: “peace or war.”

There, Xi appeared to be referring to a choice of international system: China’s or the West’s.

And it’s a choice that he may now be more confident to ask countries to make, as Beijing watches Trump shake up America’s traditional role on the global stage by exiting international bodies, axing foreign aid, and roiling longstanding allies and partners with tariffs and other demands.

But it’s a statement that rings eerily for many observers when delivered alongside a show of military might attended by Putin, whose invasion of Ukraine sparked Europe’s bloodiest war since WWII, and Kim, who feeds him weapons and troops while building up his own illegal nuclear stockpile.

Chinese officials have long said China’s military is defensive, and took pains to describe their parade as commemorating China’s contributions to “safeguarding world peace.” Xi assured his spectators that China “remained committed to the path of peaceful development.”

But as Beijing hardens its ties with Russia, North Korea and other nations unfriendly to the West, the emergence of two camps and the contest between them appears clearer than ever.

Indonesian President Prabowo Subianto, Russian President Vladimir Putin, Chinese President Xi Jinping and North Korean leader Kim Jong Un look out from Tiananmen Gate as they attend a military parade in Beijing on September 3.

Dismissing those ties between these countries would be “naive and dangerous,” said Edward Howell, a lecturer in politics at the University of Oxford in the United Kingdom, who focuses on the Korean Peninsula.

Their “common opposition to the US” allows for future, greater possibilities for “exchange in trade, weapons, and knowhow… for the broader goal of undermining the US-led international order,” he added.

And even as Beijing hopes to see a world where US alliances are broken apart, its own aggression in the region – as it asserts its territorial claims in the South China Sea and toward Taiwan – is driving American allies in Asia closer to Washington.

Meanwhile, as China faces its own challenges at home, where the ruling Communist Party is grappling with a slowing economy and persistent unemployment, some observers wonder whether drumming up nationalism as a distraction strategy could push China into an even more aggressive stance.

The parade on Wednesday “serves not only to demonstrate power abroad but also to rally nationalism at home and strengthen public support in face of economic headwinds,” said Tong Zhao, a senior fellow at the Carnegie Endowment of International Peace in the US. That helps Beijing in “shoring up internal stability to bolster China’s long-term rivalry with Washington,” he added.

And within the country, there are also those considering carefully where China’s military ambitions will lead.

Senior Col. (ret) Zhou Bo, a senior fellow at Tsinghua University’s Center for International Security and Strategy in Beijing, told CNN that he looked forward to China between now and 2049 becoming a so-called world-class military and still maintaining peace and continuing to rise.

“At that time, China’s aim is to be neck-to-neck with the US military. Then, of course, you have another dilemma: how can you prove that you have a world-class military without being combat tested?”





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Nothing’s Ear 3 earbuds have a microphone and ‘talk’ button on their charging case

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Nothing shared the first full image of its next wireless earbuds today. The design of the new Ear 3 earbuds and their charging case appear very similar to the Ear 2 that debuted in 2023, but Nothing has revealed that the case is now partly made of 100 percent recycled anodized aluminum. For the first time, the Ear 3’s charging case will also feature a microphone called the Super Mic, and a dedicated “talk” button.

The company says it’s introducing metal components on the Ear 3 “for greater durability and a premium finish,” and that it has “reengineered the metal antenna” in the earbuds to achieve an ultra-slim design. Unfortunately, details about what the charging case’s microphone and talk button can be used for, as well as performance details about the new wireless earbuds, won’t be revealed until September 18th, 2025 at 8AM ET.

Over the past week Nothing has shared additional teaser images of the Ear 3 through its X account, but the close-up photos have only revealed fine design details so far. The talk button and microphone are interesting additions, but it’s not known exactly how they’ll be used. Will it just be for summoning a smart assistant, or will the Ear 3’s charging case double as a wireless mic like those from DJI and Insta360?



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Consumer prices rose at annual rate of 2.9% in August, as weekly jobless claims jump

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Vegetables on display in a grocery store on August 15, 2025 in Delray Beach, Florida.

Joe Raedle | Getty Images

Prices consumers pay for a variety of goods and services moved higher than expected in August while jobless claims accelerated, providing challenging economic signals for the Federal Reserve before its meeting next week.

The consumer price index posted a seasonally adjusted 0.4% increase for the month, double the prior month, putting the annual inflation rate at 2.9%, up 0.2 percentage point from the prior month and the highest reading since January. Economists surveyed by Dow Jones had been looking for respective readings of 0.3% and 2.9%.

For the vital core reading that excludes food and energy, the August gain was 0.3%, putting the 12-month figure at 3.1%, both as forecast. Fed officials consider core to be a better gauge of long-run trends. The central bank’s inflation target is 2%.

On employment, the Labor Department reported a surprise increase in weekly unemployment compensation filings to a seasonally adjusted 263,000 for the week ending Sept. 6, higher than the 235,000 estimate and up 27,000 from the prior period.

The reports provide the final pieces of a complicated data puzzle that central bankers will review at their two-day policy meeting that concludes Sept. 17.

The closely watched CPI reading saw its biggest gain from a 0.4% increase in shelter costs, which account for about one-third of the weighting in the index. Food prices jumped 0.5% while energy was up 0.7% as gasoline rose 1.9%.

Market pricing indicates a 100% certainty that the Fed will lower its benchmark interest rate, currently targeted between 4.25%-4.5%. However, there has been a slight implied chance that the Fed might choose to deviate from its usual quarter percentage point move and cut by half a point considering weakness in the labor market this year and subdued inflation readings.

Fed officials have been watching the inflation data closely for clues on the impact from President Donald Trump’s tariffs. There has been some visible pass-through from the duties, though inflation figures have been relatively well-behaved. The BLS reported Wednesday that producer prices actually declined 0.1% in August.

Tariff-sensitive vehicle prices saw monthly increases, with new vehicles up 0.3%. Used cars and trucks, which are generally not influenced by tariffs, rose 1%.

This is breaking news. Please refresh for updates.



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Family offices double down on stocks and dial back on private equity

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07 July 2025, USA, New York: A street sign reading “Wall Street” hangs on a post in front of the New York Stock Exchange in Manhattan’s financial district. Photo: Sven Hoppe/dpa (Photo by Sven Hoppe/picture alliance via Getty Images)

Picture Alliance | Picture Alliance | Getty Images

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.

Family offices have ramped up their bets on stocks while dialing back their private equity bets, according to a new survey by Goldman Sachs.

Investment firms of ultra-wealthy families reported an average allocation of 31% to public equities, up 3 percentage points from the bank’s last poll in 2023. Over the same two-year period, their allocation to private equity dropped from 26% to 21%, the largest change for all surveyed asset classes. 

The shift to stocks was marked for family offices in the U.S. and the Americas, which raised their average allocation from 27% to 31%. As for private equity, their allocation dropped by 2 percentage points to 25% but still exceeds that of their international peers. The bank polled 245 worldwide family offices, two-thirds of which reported managing at least $1 billion in assets, from May 20 to June 18. 

Tony Pasquariello, global head of hedge fund coverage at Goldman Sachs, described the portfolio as a “pro-risk asset mix,” as family offices have maintained a relatively high allocation to private equity.

This is despite growing concerns about geopolitical risks and inflation. In the next 12 months, more than three-quarters of respondents said they expected tariffs to be the same or higher and expected valuations to stay the same or decrease.

Family offices, especially those in the U.S., can face hefty tax bills if they make significant divestments, according to Sara Naison-Tarajano, leader of Goldman Sach’s Apex family office business. Moreover, she said, family offices tend to invest opportunistically when other market players retreat, as they did in April when tariff announcements roiled the markets. 

“There are concerns in the market, geopolitical issues, trade war issues,” said Naison-Tarajano, who is also the global head of capital markets for the private wealth division. “If they’re concerned about these things, they’re going to be ready to put money to work when these dislocations happen.”

Investing in public equities and ETFs is also the preferred way for family offices to invest in artificial intelligence, according to the survey. The vast majority (86%) of respondents said they were invested in AI in some capacity, with other popular options including investments in secondary beneficiaries of the AI boom like data centers or AI-focused VC funds.

Goldman Sachs’ Meena Flynn added that family offices are still making opportunistic plays in private equity, with 72% investing in secondaries, up from 60% in 2023. Endowments and foundations have been divesting as they are pressed for liquidity, but family offices can scoop attractive assets at a discount and weather the exit slowdown.

“They have the ability to invest in assets that they can hold over multiple generations and not be worried about an exit,” said Flynn, co-head of global private wealth management.

And while family offices appear to be drawing down in private equity, 39% reported plans to invest more in the asset class in the next 12 months, the highest of any category. Nearly the same proportion (38%) intend to invest more in stocks.

Most family offices did not expect to change their portfolios in the upcoming year. However, across every asset class, more family offices planned to increase their allocations rather than decrease. A third of respondents intend to deploy more capital while only 16% intended to increase their cash and cash equivalents allocation.

“I think what this forward-looking picture tells us is that family offices realize the importance of staying invested, and they realize the importance of vintaging, especially with private equity,” Naison-Tarajano said.  

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That said, family offices in the Americas are more bullish than their peers. More than a third reported not positioning for tail risk compared with 14% and 12% of firms in EMEA and APAC. The most popular method of preparing for a black-swan event was geographic diversification at 53%, with gold ranking second at 24%. While gold made up less than 1% of the average family office portfolio, Flynn said she has seen allocations in some portfolios as high at 15%.

“Especially in regions where our clients are very worried about political instability, they’re actually holding gold in physical form,” Flynn said. “Many of our clients literally want to see the serial number and know where it is in the vault.”

Asian family offices have also taken to using cryptocurrency as a hedge, according to Flynn. Only a quarter (26%) of APAC family offices said they were not interested in crypto, compared with 47% and 58% of their peers in the Americas and EMEA, respectively.

Overall, a third of family offices are invested in crypto, up from 26% in 2023 and doubled from 2021. Of those who haven’t, Asian family offices reported the most interest (39%) in doing so, versus 17% of their peers. Flynn attributed much of their interest to concerns about geopolitics. 



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