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Oil ends week higher on renewed US-Iran strikes, diesel hits record

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Oil ends week higher on renewed US-Iran strikes, diesel hits record
Oil prices rose on Friday, ending the week substantially higher after the United States and Iran resumed military exchanges in the seventh month of their conflict, while retail U.S. diesel prices hit a record high.

Brent crude futures settled at $92.68 a barrel, up 76 cents, or 0.8%. West Texas Intermediate crude futures finished at $91.48 a barrel, up 18 cents, or 0.20%.

For the week, Brent crude rose 7.6% while U.S. crude gained nearly 10% as supply routes in the Middle East remain impaired due to the war.

The rally in oil prices combined with a much steeper increase in fuel prices has ‌pushed inflation and government ⁠borrowing costs ⁠higher around the world and intensified fears that global economic growth might pull back without some relief.

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“All sectors of the economy are affected by diesel. This is one ​of the reasons why the government bond yields in the United States are so high, it’s the expectation that inflation will continue to go ​up,” said Claudio Galimberti, chief economist at Rystad Energy.


Average U.S. diesel prices hit record highs as renewed U.S.-Iran hostilities and Ukrainian attacks on Russian refineries increased supply disruptions. A gallon of diesel now costs $5.85 on average in the U.S., according to AAA data.
The price of diesel could ​rise even further due to the sharp drawdown in inventories and as agricultural states ⁠in various parts ‌of the country head into harvesting and planting seasons. Diesel is a primary fuel for ag equipment. ​Its equivalent futures contract, ​heating oil, has also surged as winter approaches.Citi raised its average Brent crude price forecast for the ⁠third quarter to $86 a barrel from $80, saying the reopening of the Strait of ​Hormuz was taking longer than previously expected.

ANZ analysts raised their short-term Brent crude forecast to $95 ​a barrel, with upside risk if the Middle East conflict intensifies.

The U.S. economy added 162,000 jobs in August, allaying fears of weakness in the labor market, but bolstering the case for the U.S. Federal Reserve to raise rates later in September.

“The strong employment figures points to an interest rate hike by the Federal Reserve and that was weighing on WTI,” said John Kilduff, partner with Again Capital.

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TANKER FLOWS REMAIN IMPAIRED

The U.S. government has said Middle Eastern oil flows have returned to near normal levels in recent weeks, but analysts and ‌tanker trackers indicate that flows remain seriously disrupted.

Four commodity vessels transited the Strait of Hormuz on Thursday, well below the 10-day average tally of about 15, preliminary shipping data showed.

“Oil seems to be in a phase where ​the conflict’s gridlock ​and recurring hostilities are regularly awakening ⁠a risk premium embedded in prices,” said Norbert Rucker, head of economics and next generation research at Julius Baer.

“So far, there is no indication that this week’s escalation materially impacted exports out of the Middle East and tightened the oil market,” Rucker said. “Oil’s current rally ​seems mostly mood and fear driven.”

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U.S. attacks this week that killed and wounded dozens, including Iranian civilians, were the fiercest clashes between the two countries since July.

The U.S. campaign to throttle Iran’s economy by blockading its oil exports and stopping sanctions evasion is growing increasingly difficult to withstand, three senior Iranian sources said.

Iraq increased its August oil exports to about 2.34 million barrels per day from about 1.35 million bpd in July, two Iraqi energy officials said on Wednesday.

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Pubmatic chairman, chief innovation officer Goel sells $106,526 in stock

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Elon Musk Reignites Years-Long Feud With Chess.com After Bold Claim, Calls Admin An ‘Intern’ In Online Spat

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Elon Musk, founder of SpaceX, has credited NASA's support for the company's success

Elon Musk and Chess.com have reignited a public feud that dates back years, trading a series of pointed messages on X this week after the billionaire made a sweeping claim about the future of the game.

“The actual number of moves that are not utterly stupid in chess is tiny and chess will be fully solved one day,” Musk wrote in a post on X on Sept. 3.

The prediction quickly drew a response from whoever manages Chess.com’s official X account.

“Skill issue,” the account replied in a quote-tweet later that same day, using a term commonly deployed in online gaming culture to question someone’s competence.

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What followed was a rapid exchange of snarky, passive-aggressive posts between Musk and the Chess.com account, with Musk defending his understanding of the game while Chess.com repeatedly questioned it. The exchange, while new in its specifics, extends a rivalry between Musk and the popular chess platform that stretches back nearly four years.

The origins of the feud trace to December 2022, shortly after Musk had purchased Twitter and before he renamed it X. Musk posted about his own history with chess at the time, dismissing the game’s complexity relative to real-world scenarios.

“I did as a child, but found it to be too simple to be useful in real life: a mere 8 by 8 grid, no fog of war, no technology tree, no random map or spawn position, only 2 players, both sides exact same pieces, etc.,” Musk wrote in that earlier post.

Chess.com responded at the time not just with a tweet, but with a full blog post titled “Why Elon Musk Doesn’t — And Can’t — Play Chess.” The post pushed back directly on Musk’s characterization of the game as simplistic, highlighting several nuanced rules that it argued undercut his argument, including castling, en passant, pawn promotion and the unconventional movement pattern of the knight piece.

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Addressing the knight specifically, Chess.com’s blog post took a notably sharp tone.

“How can one piece jump over another and then have the possibility of landing on up to eight squares?” the post read. “True, it’s not random and it’s probably confusing to someone who is a billionaire.”

Chess.com also replied directly to Musk’s original 2022 tweet, though that earlier exchange did not prompt any public response from Musk at the time, leaving the rivalry largely dormant until this week’s renewed exchange.

Following Chess.com’s “skill issue” jab this week, Musk offered a more detailed defense of his position on the game’s ultimate solvability, drawing a comparison to another classic board game that has already been fully mathematically resolved.

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“Chess is hard for humans, but not for computers,” Musk wrote. “One day, it will be fully solved like checkers. Between now and then, or even after, have fun. People enjoy many games/sports where machines are vastly better.”

The back-and-forth continued from there, growing increasingly personal at points. Musk at one stage referred to whoever runs the Chess.com account as an “intern,” prompting a swift correction from the account.

“I’m a full-time employee,” the Chess.com account replied.

The Chess.com admin also poked fun at how quickly Musk was responding throughout the exchange, suggesting the billionaire’s rapid replies stood out compared with his own social circle.

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“Even my friends don’t text me back that fast,” the account wrote.

The public spat drew significant attention from other users on X, many of whom sided with Chess.com in the exchange. One user, posting under the handle @CantEverDie, offered a pointed take on the dynamic playing out in real time.

“Have been really enjoying this chess account wolloping on Elon Musk for the last 12 hours,” the user wrote. “Elon Musk continues to be one of the dumbest people around.”

Chess.com spokesperson Bianca Facey offered a similarly sharp assessment of the exchange in comments to USA Today.

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“We understand losing a chess game can be frustrating, but losing a Twitter fight to a so-called intern must be maddening,” Facey said.

X had not responded to a request for comment on Musk’s behalf regarding the exchange as of publication.

Chess.com’s willingness to engage playfully, and at times combatively, with high-profile figures and internet culture more broadly is not new for the platform. The company has built a substantial following for its social media presence over the years, frequently leaning into meme culture surrounding the game. Jokes referencing Chess.com and specific chess rules have circulated widely across platforms including Reddit, where one popular post shared in the r/AnarchyChess subreddit in 2021 joked about a player getting “en passant’d” by an opponent, humorously suggesting the confusing but legal move was so unexpected that the victim assumed they had been hacked and searched for how to report the incident to Chess.com.

The platform has also generated viral moments independent of its rivalry with Musk. In March 2025, Chess.com shared a tweet asking users to suggest a new name for the bishop chess piece, a post that drew more than 53.4 million views and prompted a flood of replies, many of which simply suggested renaming it “bishop.” The account’s admin responded to the wave of unhelpful suggestions with characteristic humor.

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“Please stop suggesting ‘bishop’ … silly name,” the Chess.com account wrote at the time.

Musk’s history of public disputes with individuals and organizations on X, the platform he owns, has become a recurring feature of his online presence in recent years, spanning everything from business rivals to media figures to, now, a chess website’s social media team. Whether this latest round of sparring with Chess.com produces any further escalation, or fades as quickly as it began, remains to be seen, though the exchange has already generated significant engagement and amusement among users following the back-and-forth in real time on X this week.

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ETMarkets Smart Talk | Don’t judge India by Nifty’s 21x PE; stock-level valuations still offer opportunities: Emkay Investment Managers: Kashyap Javeri

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ETMarkets Smart Talk | Don't judge India by Nifty's 21x PE; stock-level valuations still offer opportunities: Emkay Investment Managers: Kashyap Javeri
India may be trading at a valuation premium to most emerging markets, with the Nifty 100 currently valued at around 21 times earnings compared with 14-17 times for several other EMs. But headline price-to-earnings multiples alone may not tell the complete story.

Kashyap Javeri, Head of Research and Fund Manager at Emkay Investment Managers Limited, argues that comparing markets purely on index-level valuations can be misleading, particularly when indices across emerging markets have vastly different compositions and concentration levels. Instead, investors should focus on company-specific growth and valuations, where opportunities continue to remain attractive on a PEG basis.

In an interview with Kshitij Anand of ETMarkets, Javeri discusses why India’s markets should not be judged solely by the Nifty’s headline PE multiple, the strong and increasingly broad-based earnings growth in mid- and small-cap companies, the role of SIPs in driving domestic institutional flows, early signs of fatigue in FPI selling, and the key risks posed by rising crude oil prices and currency weakness. Edited Excerpts –

Q) Most experts say valuations and earnings offer a reasonable starting point. But India is still trading at a premium to most emerging markets. What exactly is “reasonable” here—and what would make you admit that Indian equities are still expensive?

A) Nifty 100 today trades at 21x PER vs many of the emerging markets trading between 14-17x PER. However, looking at the plain PER numbers how does one conclude that Indian markets are expensive or cheap vs most emerging markets? In some of the emerging markets, the indices are so skewed that one or two stocks 42% to 55% of index weight. How do you compare the PERs of two markets? What we as well as global investors don’t seem to appreciate SEBI’s regulatory oversight on such undue influence of 1-2 stocks on the markets. We believe that if one shifts focus from headline numbers on PER and earnings to more focussed stock specific approach, there are plenty of opportunities available in the market to deploy money. We don’t believe that Indian markets are expensive at stock specific level compared to growth that they offer. PEG at stock specific level remains very attractive.

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Q) If earnings are genuinely improving, why haven’t valuations corrected more aggressively? Are investors already pricing in the recovery?

A) The valuations at the index level are also driven by overall composition. For example nearly 47% of Nifty 100’s weight is BFSI+IT+RIL. We haven’t seen a very rosy picture of earnings here and hence the valuations have neither corrected much nor improved. However, if you go one step below – Nifty Smallcap 250 and Nifty Midcap 150 indices’ earnings grew at healthy 20+% for FY26 as well as Q1FY27 and hence Nifty Midcap 150 Index again crossed its all time high yesterday and Nifty Smallcap 250 index is just 1% away from the same.

Q) Everyone is calling Q1 earnings encouraging. But how much of that growth is actually broad-based, and how much is being driven by a handful of sectors or companies?

A) The earnings today are more than democratised than ever before. For FY26 as well as Q1FY27, the earnings of Nifty Smallcap 250 and Nifty Midcap 150 indices’ earnings grew at healthy 20+%, in fact higher for Smallcap. If you look at most broker reports, upgrade to downgrade ratio is 1x+ after long time and has improved for straight two quarters. More than sectors have seen earnings growth higher than index of which they are part of.

Q) DIIs have been relentless buyers. But are domestic flows actually reflecting investor conviction, or are SIPs simply creating an automatic bid regardless of valuations?

A) One would be correct in saying that SIPs are currently driving DII flows completely. Adjusted for SIP flows, the mutual funds have seen net outflows in 3 out of last 5 years. However, it is also true that Indian retail investors have raised SIP investment from $17bn in FY22 to nearly $40bn in FY26 shows their conviction. Let’s not make a mistake of assuming that only lumpsum flows in the market are smart money.

Q) We are seeing early signs of FII buying. But, can we call this as a turnaround after just a couple of months of modest flows?

A) Two things worth noting here – while FPI flows have been modest, they were net buyers in 26 out of 40 trading days in Q2FY27. That itself shows the incessant selling has started witnessing fatigue. Secondly, FPIs are not the only barometer global investor’s sentiment. If you look at FY26, gross inward FDI towards India stood at $95bn (of which $62bn was fresh money), the repatriation by private equity players thawed. For Q1FY27, we have already seen $31bn flowing in.

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Q) If US bond yields remain elevated, crude moves higher and the rupee weakens simultaneously, does the current bullish thesis break?

A) Crude oil continues to threaten not only Indian markets but world markets too. From India’s standpoint its very important given that our import bill on petroleum stands at $180bn (or nearly 5% of our GDP). We have seen in past that whenever our FX cover falls below 7.2-7.5 months of our import bill plus short-term FX debt repayments, the currency has seen sharp depreciation like it happened in last 6-7 months. Lets hope that FCNR deposits and FDI money helps us improve the same.

Q) Large-, mid- and small-caps have all performed well. But isn’t that exactly what makes you nervous? Where are valuations most disconnected from fundamentals?

A) We believe that the valuations mismatched cannot be looked at sectoral level. Barring IT, almost every industry in India is witnessing tailwinds and within those industries, valuations of some stocks will overshoot the earnings expectations and in some cases they may undershoot due to some exogenous factors. Be mindful of such scenarios but stay invested!

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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Beta bionics CEO Sean Saint sells $113,258 in company stock

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Gevo director Patrick Gruber sells $5,671 in company stock

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Asia Shifts from Digital Transformation to Global Leadership

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Asia Dominates Global Digital Hardware Trade with Key Electronic Components
  • Asia has shifted from adopting externally built technology to constructing the foundational layers of the global AI economy. The region accounts for roughly 72 percent of global semiconductor production and over 95 percent of advanced AI accelerator chips, with Taiwan, South Korea, and Japan anchoring the supply chain that underpins worldwide AI infrastructure spending.
  • Beyond hardware, major Asia-Pacific economies are developing domestic large language models and sovereign compute infrastructure, backed by significant capital commitments and formal policy frameworks. Structural challenges remain, including AI talent shortages, cross-border regulatory fragmentation, and the risk that hardware advantages do not automatically translate into broader technology leadership.

For most of the past decade, “digital transformation” in Asia meant catching up: banks digitising branches, retailers building e-commerce rails, governments rolling out digital ID. That era is closing. The region is no longer principally absorbing technology built elsewhere. It is building the foundational layers of the AI economy itself, exporting the compute, the chips and, increasingly, the models that the rest of the world depends on.

The shift shows up first in trade data. Asian economies contributed close to two-thirds of the growth in global AI-related trade in 2025, and semiconductor sales are on track to approach the $1 trillion mark globally in 2026, with the Semiconductor Industry Association crediting AI infrastructure spending as the primary driver. Asia is not simply plugged into that boom. It is the boom’s supply base, and its capital.

The semiconductor foundation

The starting point for Asia’s claim to technological leadership remains hardware. Including Japan, the region now accounts for roughly 72 percent of global semiconductor production and about 95 percent of the most advanced chips used in AI accelerators, according to analysis from State Street Global Advisors. Taiwan manufactures the leading-edge logic chips that power frontier AI models, South Korea dominates high-bandwidth memory, and Japan supplies the specialty chemicals and precision equipment that make the rest of the chain possible. J.P. Morgan Asset Management has gone further, putting Asia’s share of leading-edge semiconductor production above 95 percent and noting that technology now makes up more than 30 percent of the MSCI Asia Pacific ex Japan Index.

That concentration is not incidental. It took roughly fifteen years and tens of billions of dollars of sustained investment to build, and it now anchors what has been described as Asia’s industrial supercycle, in which AI data centres, energy infrastructure, defence electronics and supply chain diversification reinforce one another rather than functioning as separate trends. Every advanced GPU shipped anywhere in the world still traces back to Taiwanese silicon, Korean memory and Japanese equipment. The West’s hyperscalers are spending unprecedented sums on AI infrastructure, but a large share of every dollar spent ultimately flows back to Asian suppliers.

Sovereign AI, not borrowed AI

What has changed more recently is the model layer. Through 2024 and into 2025, most of Asia’s AI activity was about deploying Western large language models. That is no longer the whole story. Every major Asia-Pacific economy now runs its own domestic large language model programme: India’s Sarvam AI, Malaysia’s ILMU, Indonesia’s Sahabat AI, Singapore’s SEA-Lion, South Korea’s HyperCLOVA X Think, Japan’s NTT Sarashina and Taiwan’s TAIDE, according to a market report from Digital in Asia. More than 100 countries signed the Bangkok Declaration in February 2026 committing to AI sovereignty, treating dependence on a foreign AI supplier as a strategic vulnerability comparable to energy dependence.

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The scale of the underlying commitment is considerable. China’s AI capital expenditure reached an estimated $91 billion to $98 billion in 2025, up more than 50 percent year on year, while its science and technology budget hit roughly $171 billion, the largest single science allocation in the country’s budgetary history, per the same report. East Asian institutions now hold more than 80 percent of global AI patent grants and close to 35 percent of global AI research output. The region that spent the 2010s licensing technology from Silicon Valley is now filing the patents.

Regionally, ASEAN has formalised the same instinct through policy. The sixth ASEAN Digital Ministers’ Meeting, held in Hanoi in January 2026, adopted the Hanoi Digital Declaration and set out the new ASEAN Digital Masterplan 2026-2030, covering AI cooperation, resilient digital infrastructure, a future-ready digital workforce and trusted cross-border data flows. The framing captures the shift in a single phrase: from connectivity to connected intelligence.

The compute build-out

Sovereign models need sovereign compute, and Southeast Asia’s data centre buildout has moved from consumption to infrastructure formation. Greenfield investment in ASEAN’s information and communication sector rose 43 percent to reach $30 billion, driven by demand for data centres, cloud infrastructure and data processing, while investment in electronics and electrical equipment climbed 15 percent to $31 billion. Amazon Web Services, Google and Microsoft have all committed multi-billion-dollar cloud region investments across Thailand, Malaysia and Indonesia.

Thailand has become one of the more visible beneficiaries of that reallocation. The Board of Investment approved a $25 billion data infrastructure commitment from a TikTok affiliate, part of a broader $29 billion package spanning six major projects, with AI processing and cloud services now accounting for 86 percent of total digital investment value approved. Gorilla Technology has separately moved to build a 200 megawatt AI compute campus in Korat, designed to serve Southeast Asian demand for sovereign compute capacity from governments, hyperscalers and enterprises alike. A further $1.99 billion in BOI-approved investment in July, led by AI infrastructure and advanced electronics projects, reflected a 2.4-fold year-on-year surge in investment applications.

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Where Thailand fits

Thailand’s position in this shift is more structural than opportunistic. The country is on track for record exports this year, driven substantially by AI-related electronics demand, with the Thai stock market emerging as Southeast Asia’s strongest performer this year and Delta Electronics alone gaining roughly 80 percent as investors price in the country’s role in the AI hardware supply chain. The government’s FastPass Program has unlocked an estimated $21 billion in strategic high-tech investment, and Thailand’s AGIBOT APC 2026 initiative signals ambitions to become a regional hub for embodied AI and advanced robotics deployment, not merely a manufacturing site for someone else’s hardware.

That ambition extends to robotics more broadly. Vietnam, Thailand and Malaysia are betting on automation to make their factories attractive for reshoring and near-shoring investment as global supply chains diversify away from China, competing on integration sophistication rather than labour costs alone. Singapore has taken the commercialisation lead within that trend, anchored by a $125 million funding round for 3D-mapping startup dConstruct and a state-backed accelerator that has drawn partners including Nvidia, OpenAI, Grab and DHL.

The caveat

None of this converts automatically into durable leadership. The World Economic Forum, drawing on BCG research, has been explicit that Asia-Pacific’s structural advantages in chips, memory and manufacturing will not translate into AI leadership unless organisations treat AI as a leadership question rather than a technology function delegated downward. The same report notes the window for converting potential into leadership is real but not permanent.

Talent remains the binding constraint. China faces an estimated shortfall of five million AI professionals, Japan a gap of around 100,000, and India reports an 82 percent talent shortage rate for AI-specific roles, even as the region produces AI graduates at record scale. An estimated 87 percent of Chinese-educated AI researchers who move to the United States for work stay there, a brain drain that undercuts the sovereignty ambitions driving so much of the region’s policy activity.

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Regulatory fragmentation carries a similar risk in the commercial layer. Southeast Asia’s fintech sector illustrates the pattern: the region has consolidated its position as the world’s most dynamic fintech market, yet a company that reaches product-market fit in Thailand still confronts a materially different regulatory regime in Indonesia, Vietnam or the Philippines, which slows the kind of regional scaling that a genuine leadership position would require. The same tension applies to AI: eleven jurisdictions building sovereign models and sovereign compute simultaneously is a hedge against dependency, but it is not yet the coordinated bloc that would let Asia set global standards rather than simply supply global infrastructure.

The direction of travel, even so, is unmistakable. Asia spent the last technology cycle adopting what others built. It is entering this one building what others will need to adopt.

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China’s Expanding Influence in Thailand: Economy, Data, and Public Trust

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Thailand News Digest: Key Stories and Developments
  • China has significantly expanded its economic, digital, and informational presence in Thailand through infrastructure investment, media content-sharing agreements, Confucius Institutes, and state-linked technology companies. Chinese firms have built core components of Thailand’s 5G network and data infrastructure, while Beijing’s influence extends into Thai media, academia, and political circles.
  • Despite deep economic entanglement, Thai public sentiment toward Chinese influence is notably skeptical. A 2026 regional survey found 90.6% of Thais expressed concern about China’s growing economic clout, the highest rate in Southeast Asia. This gap between government policy and public opinion represents a significant and growing political risk for businesses and investors operating in Thailand.

China’s global influence campaign has been particularly evident in Southeast Asia, including Thailand. Historically, the Thai public and many elites have had relatively warm views of China. However, Beijing has launched a multitude of efforts to expand its influence within Thailand’s society and politics.

Key Takeaways

  1. Media Environment: China has sought to influence Thailand’s media environment. Efforts include signing content-sharing deals that enable Xinhua, China’s official news agency, to be picked up by many elite Thai outlets. Additionally, state media expansion in Thailand has been part of this strategy.
  2. Local Business Community: Beijing has extensively cultivated the local business community in Thailand. This engagement helps support the military and monarchy.
  3. Confucius Institutes: China has established Confucius Institutes in Thailand, which serve as cultural and educational centers. These institutes promote Chinese language and culture but are also part of China’s broader soft power efforts.
  4. Lese Majeste Laws: Many of these influence efforts indirectly support the Thai military and monarchy. As a result, they help maintain the draconian lese majeste laws (Article 112) in place in Thailand.
  5. Social Media Influence: Social media plays a crucial role in extending China’s influence. It serves as a tool to obscure and amplify propaganda, monitor dissidents, censor information, and shape global public opinion. In 2022, approximately 52 million Thai citizens (72.8% of the population) were active on social media.

China’s effort to shape perceptions, build dependencies, and extend its reach across foreign societies is one of the defining strategic undertakings of the 21st century. In Southeast Asia, that campaign is executed with particular persistence. And in Thailand — a country whose government has welcomed Chinese investment, whose infrastructure is increasingly built on Chinese technology, and whose history is largely free of colonial-era grievance toward Beijing — the effects are both deep and, in some dimensions, quietly contested.

Understanding those effects is not merely an academic exercise. For businesses, investors, and policymakers operating in Thailand, the layers of Chinese influence — economic, digital, informational, and cultural — constitute a material operating environment that shapes market dynamics, regulatory decisions, and geopolitical risk in ways that are not always visible in headline trade figures.

The Economic Footprint: Dependency by Design

The most visible layer of Chinese influence in Thailand is economic, and its scale is significant. Chinese buyers account for 10.8% of condominium ownership in Thailand, and Chinese investment continues to flow across manufacturing, logistics, real estate, and digital infrastructure. Nearly 4.5 million Chinese tourists visited Thailand in 2025, making China one of the top three source markets for inbound tourism.

Huawei built much of the 5G network backbone across Thailand’s Eastern Economic Corridor. Alibaba Cloud operates extensive data centre infrastructure across the Bangkok metropolitan area. ByteDance received BOI approval for a USD 25 billion data infrastructure investment in 2026 — one of the largest single digital investments in Thai history — spanning server installation and data processing across Bangkok, Samut Prakan, and Chachoengsao. That followed a 127-billion-baht data-hosting project approved in 2025.

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Combined, these investments represent a Chinese-built digital operating environment that underlies Thailand’s fastest-growing economic sectors: e-commerce, cloud technology, digital payments, and AI-driven logistics.

This is not accidental. China’s Digital Silk Road, an essential component of the Belt and Road Initiative, seeks to position China as the digital architect of the Asia-Pacific region. Concerns about national security, sovereignty, and geopolitical influence are growing alongside the expansion of 5G networks, undersea cables, and data centres throughout Southeast Asia.

Southeast Asian countries face a structural tension: they are increasingly adopting Chinese software while remaining more reluctant to adopt Chinese-made hardware. Ultimately, these countries must choose between cost and risk — and China’s digital push also creates an opportunity for Beijing to spread its own model of cyber governance, which runs counter to principles of free and accountable governance.

The Information Environment: Narratives and Media Penetration

Beyond infrastructure, China has invested heavily in shaping the information environment in Thailand. Beijing has signed content-sharing deals enabling Xinhua to be syndicated across many elite Thai outlets, cultivated the local business community, deployed Confucius Institutes, and expanded Chinese state media operations in the country. Many of these efforts have aligned with the interests of Thailand’s military establishment and, by extension, have reinforced the country’s restrictive lese-majeste laws.

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Chinese disinformation is now growing in Thailand, with Chinese narratives — whether fabricated content or state-sponsored propaganda — gradually seeping into Thai media, academia, and political and business circles. Researchers note that, unlike Russia’s state-directed model, China’s disinformation work is diffuse and often delegated to various departments or outsourced to private contractors, making attribution difficult.

Beijing’s influence toolkit falls broadly into five categories: straightforward propaganda, outright disinformation using fake accounts and manipulative social media tactics, censorship pressure on foreign media via Chinese diplomats, infrastructure controlled by companies with ties to the Communist Party, and Confucius Institutes that reinforce cultural appeal and access to study-abroad opportunities.

Student-led initiatives promoting democratic values in Thailand have faced pressure from Chinese business interests to cease activities. Partnerships between Thai media outlets and Chinese state-run media raise impartiality questions, particularly around sensitive topics such as the Hong Kong protests and human rights abuses in Xinjiang.

The Education and Cultural Layer

The number of Chinese students enrolled in Thai universities grew by 455% between 2013 and 2023 — a demographic shift that reshapes campus dynamics, institutional funding priorities, and the kinds of academic discussions that feel professionally safe.

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As of 2022, there were over 400 Confucius Institutes and classrooms overseas that promote Chinese language and culture, with Europe and Asia holding the largest concentrations. China has used these in tandem with study-abroad opportunities and scholarship programs to build long-term networks of influence among future professionals, researchers, and decision-makers.

The Public Opinion Paradox

Perhaps the most analytically important finding in China’s influence story in Thailand is the gap between the depth of economic entanglement and the breadth of public unease.

Thailand takes the crown as the wariest country in Southeast Asia of China’s growing economic clout, with a 90.6% rate of apprehension in the ISEAS State of Southeast Asia 2026 Survey. While every other regional state records a double-digit approval figure for China’s increasing economic influence, only 9.4% of Thais welcome it. On China’s growing political and strategic influence, Thailand ranks as the second most worried in the region, behind only Vietnam.

Thai concern over China’s militarisation and assertive actions in the South China Sea jumped from 28.1% in 2025 to 40.4% in 2026 — a striking shift in a single year.

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The 90.6% concern figure is not an outlier. It reflects consistent polling trends showing public unease about Chinese economic dominance, Chinese land ownership, Chinese labour practices at Chinese-owned facilities, and the displacement of Thai manufacturers by Chinese competitors. This sentiment has already produced concrete policy responses: proposed VAT on low-priced Chinese goods, stricter enforcement of foreign business ownership rules, and parliamentary scrutiny of Chinese-funded infrastructure projects.

The gap between Thailand’s government posture toward China and Thai public opinion about Chinese influence is one of the most significant political risks in the country’s business environment. Thailand is deeply economically integrated with a partner it does not entirely trust, dependent on relationships it cannot afford to lose, and acutely aware of the risks that come with both.

The Strategic Calculus: A Country at a Crossroads

The ISEAS 2026 Survey describes a Southeast Asia that is increasingly cautious and determined to preserve room for manoeuvre in a contested strategic landscape — neither fully aligning with Beijing nor dismissing the economic realities of its presence. Thailand sits at the sharper end of that dynamic.

The Thai government has navigated this terrain through studied ambiguity: accepting Chinese investment and infrastructure while maintaining formal treaty alliance status with the United States, welcoming Chinese tourists and students while facing growing domestic pressure to regulate Chinese economic practices. That balancing act has served Bangkok’s interests for years. Whether it remains sustainable — as digital dependencies deepen, public opinion hardens, and the US-China rivalry intensifies — is the central strategic question Thailand will face through the remainder of this decade.

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For the business community, the implications are practical. Supply chain decisions, data infrastructure choices, and market entry strategies in Thailand increasingly carry a geopolitical dimension that was absent a decade ago. Understanding the full architecture of Chinese influence — its economic depth, its informational reach, its cultural investment, and the Thai public’s profound ambivalence about all of it — is no longer optional background knowledge. It is operational due diligence.


Sources: ISEAS-Yusof Ishak Institute State of Southeast Asia 2026 Survey; Council on Foreign Relations; Friedrich Naumann Foundation; Radio Free Asia; CSIS; The Diplomat; Thailand Business News

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Just One Drink A Day Doubles Alcohol’s Share Of Cancer Deaths Over 33 Years, Study Finds Doctors Say

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Alcohol may play a considerably larger role in cancer deaths across the United States than previously understood, according to a new study finding that even a single standard drink per day contributes meaningfully to alcohol-related cancer risk.

Researchers found that while overall cancer mortality in the United States has declined in recent decades, the proportion of cancer deaths attributable to alcohol has changed dramatically over time. Dr. Chinmay Jani, the study’s first author and chief clinical fellow in hematology and oncology at the Sylvester Comprehensive Cancer Center of the University of Miami, said the shift was striking even amid broader improvements in cancer survival.

“While it’s true that overall cancer mortality has declined, we found the percentage of cancer deaths proportionally attributable to alcohol doubled in people 20 and older over the last 33 years,” Jani said.

The study drew on data from the Global Burden of Disease study, a large-scale international research effort that measures health outcomes, mortality and disability tied to hundreds of risk factors, diseases and conditions across more than 200 countries and territories. Using that dataset, researchers found that the increased risk of cancer death tied to alcohol consumption applied broadly across multiple cancer types, including breast, prostate, colon, rectum, stomach, pancreatic and liver cancers, as well as cancers affecting the head and neck.

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Jani noted that alcohol’s connection to liver cancer mortality specifically has long been well established within the medical community.

“Overall, we know alcohol is closely related to liver cancer mortality,” Jani said.

The research also identified a particularly strong association between alcohol consumption and cancers of the head and neck, a category that includes malignant tumors of the lip, oral cavity, pharynx, larynx and esophagus. According to the study, alcohol serves as a risk factor in up to one-fourth of all head and neck cancers, a proportion Jani emphasized carries direct implications for prevention efforts.

“Which obviously could be prevented,” Jani said of the substantial share of head and neck cancers tied to alcohol use.

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Despite the scale of the association the study identified, Jani was careful to note that the research did not establish that complete abstinence from alcohol is necessary to meaningfully reduce cancer risk, instead emphasizing a more incremental message about moderation.

“While our study does not have the data to show you should completely stop drinking alcohol, the message we want to deliver is that lowering your alcohol use to the lowest possible level will be best for your health,” Jani said.

A co-author of the study, whose comments were included in reporting on the research, framed the findings within a broader context of accumulating scientific evidence pointing toward alcohol-related cancer risk.

“This study in concert with several others suggests that the risks associated with consumption need much wider recognition,” the co-author said.

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The findings drew a direct response from the alcohol industry. The Distilled Spirits Council of the United States, a trade group representing distillers, pushed back against broader claims sometimes associated with alcohol research suggesting there is no safe level of alcohol consumption whatsoever, telling CNN in an emailed statement that such a claim “is not supported by this study.”

Amanda Berger, senior vice president of science and research for the Distilled Spirits Council, offered a more detailed critique of how the study’s findings have been characterized in public discussion.

“It misrepresents the body of scientific evidence and the complex relationship between alcohol and health,” Berger said.

Medical researchers have identified several biological mechanisms through which alcohol is understood to contribute to cancer development, according to the National Cancer Institute. Alcohol consumption alters levels of certain hormones, including estrogen, which researchers cite as a key factor underlying the established link between drinking and breast cancer risk specifically.

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Beyond hormonal effects, alcohol also contributes to oxidative stress within the body, a process that damages DNA, proteins and overall cell function while promoting inflammation, according to the National Cancer Institute. Alcohol consumption additionally weakens cells within the mouth and throat, making those tissues more vulnerable to damage from carcinogens, an effect researchers note becomes considerably more pronounced among individuals who also smoke cigarettes, given that smoking introduces additional carcinogenic compounds, including acetaldehyde, into the same tissues.

Alcohol consumption has also been found to interfere with the body’s ability to properly break down and absorb several key nutrients believed to help lower cancer risk, including vitamins A, C, D and E, along with folates within the vitamin B complex, according to the National Cancer Institute.

The study’s findings add to a growing body of research over the past several years reexamining long-held assumptions about moderate alcohol consumption and health, following decades during which some earlier research had suggested potential cardiovascular benefits associated with light-to-moderate drinking. More recent research, including this latest study, has increasingly emphasized cancer risk as a significant and underrecognized consequence of alcohol consumption, even at levels many people might not consider excessive.

Public health researchers have noted that raising broader public awareness of alcohol’s role in cancer risk remains an ongoing challenge, given how deeply embedded moderate alcohol consumption is within many social and cultural practices in the United States and other countries. Unlike tobacco, which has undergone decades of sustained public health messaging specifically linking its use to cancer risk, alcohol’s connection to cancer has received comparatively less sustained public attention despite a substantial and growing body of supporting research.

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For individuals concerned about their own personal cancer risk related to alcohol consumption, medical experts generally recommend discussing personal drinking habits directly with a health care provider, particularly for those with additional risk factors such as a family history of alcohol-related cancers, tobacco use, or preexisting liver conditions, given that individual risk can vary considerably based on a range of personal health factors beyond alcohol consumption alone.

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