Global Public Affairs Newswire – 24 July 2026
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Market updates
Conflict Abroad are Costly for Americans at Home
- The Costs of War. The U.S. finds itself in a deepening Middle East conflict with real costs that are beginning to erode public support. Eighteen American deaths, $37.5 spent and a request for $67 billion more, and oil above $90 a barrel are forcing a difficult question across party lines: is preventing a nuclear Iran worth this price? Even those who share the administration’s core objective are growing skeptical. When the loss of American lives, financial burden, and kitchen-table economic pain converge, political will erodes quickly — and the administration will need a compelling case to sustain it.
- From the Pitch to the Purse. The post-World Cup goodwill between the U.S. and Canada has evaporated fast. New American tariffs on $20 billion in Canadian goods signal that economic nationalism is overriding neighborly diplomacy. Prime Minister Carney, buoyed by strong domestic approval, has little political incentive to negotiate – making a swift resolution unlikely. Meanwhile, 900 wildfires sending toxic smoke across the border serve as a reminder that some problems do not respect borders or tariff walls. The challenge is that a prolonged trade dispute with America’s largest trading partner carries real economic consequences for both sides, at a moment when neither can easily afford them.
- Sweeps, Stopgaps, and Showdowns. On Tuesday, Arizona primary elections delivered Trump a clean sweep, providing meaningful momentum at a moment Republicans badly needed it. But the death of South Carolina Senator Lindsey Graham casts a longer shadow — his relationships, institutional knowledge, and influence on foreign policy, judicial confirmations, and election security are not easily replaced. A narrower Senate majority also means every vote becomes more consequential. Meanwhile, the House’s narrow passage of a stopgap funding bill heads to the Senate and appears designed to force Democrats into a difficult position pre-midterms. Democrats must decide what battles are worth fighting when neither option is comfortable.
"President Trump finds himself navigating a presidency defined by high-stakes gambles and compounding pressures – yet he remains a force with momentum. The question increasingly being asked, by allies and critics alike, is where that momentum is carrying the country.”
Jennifer Y. Kaplan
Managing Director, United States
For more information about FTI’s Public Affairs services in the Americas, please contact [email protected].
Andy Burnham Appointed Prime Minister and Unveils New Cabinet
- Andy Burnham has been formally appointed as Prime Minister following Sir Keir Starmer’s resignation, marking the beginning of a new Labour administration after Burnham secured the party leadership unopposed. In his first address from 10 Downing Street, Burnham framed his premiership as an opportunity to restore political stability after a decade of frequent leadership changes, pledging the biggest political reforms in 40 years through a programme centred on devolution, reindustrialisation, and tackling the cost of living.
- Following his appointment, Burnham announced a substantially reshaped Cabinet, signalling an early shift in government priorities. John Healey was appointed Chancellor, replacing Rachel Reeves and taking responsibility for delivering Burnham’s fiscal agenda while maintaining the fiscal rules set by his predecessor. Several other senior figures departed Cabinet, including David Lammy, Liz Kendall, and Peter Kyle. Notably, Burnham has expanded Cabinet attendance to include the Ministers for Artificial Intelligence, Housing, and Intergovernmental and European Relations, underscoring the prominence these policy areas are expected to hold under the new administration.
- The Government also announced its first substantive policy intervention, confirming that VAT on domestic electricity bills will be abolished from 1 October. The measure, funded through the cancellation of the planned Digital ID programme, is expected to reduce the annual Ofgem price cap by around £45 and represents an early attempt to demonstrate progress on Burnham’s pledge to ease cost-of-living pressures.
- Politically, the appointments provide the clearest indication yet of Burnham’s governing priorities. The Cabinet balances experienced ministers with new portfolios aligned to his agenda of economic renewal, technological innovation, and constitutional reform. While the Prime Minister enters office with considerable goodwill and a united Parliamentary Labour Party, attention will now shift from rhetoric to delivery as the Government begins translating its broad programme into detailed policy over the coming weeks.
“Monday's investiture of Andy Burnham as Prime Minister was the culmination of a remarkably short and straightforward campaign process. With all hopes of the Labour Party pinned to him, he entered Downing Street with a message of hope founded on re-industrialisation, devolution and removing factionalism from politics. Addressing the cost of living will be central to his approach, as seen with his first policy announcements on energy and bus fares. It will not, however, be smooth sailing. He inherits a challenging fiscal, domestic, and international landscape. But the new Prime Minister is well aware of the challenges that lay before him, and aware that this honeymoon period will not last long. Unlike many of his predecessors, he comes with the experience of what it takes to deliver change locally. His new Office of the Prime Minister and Cabinet, overseen by his First Secretary of State Louise Haigh, will need to ensure that delivery happens. Without this, his vision of growth in every postcode is likely to remain out of reach.”
Nirmalee Wanduragala
Managing Director, London
For more information about FTI’s Public Affairs services in the United Kingdom, please contact [email protected].
China moves AI governance from principles to platforms
- President Xi Jinping attended the opening ceremony of the 2026 World Artificial Intelligence Conference and High-Level Meeting on Global AI Governance in Shanghai on July 17, calling for a fair and reasonable global AI governance system. His keynote framed AI around four priorities: open innovation, safety and control, civilizational diversity, and multilateral governance.
- The meeting comes as AI is increasingly treated not only as a technology or industrial policy issue, but also as a global governance question. China emphasized open-source cooperation, responsible innovation, risk management, and opposition to the overextension of national security concepts, while presenting AI capacity building as central to narrowing the digital and intelligence divide.
- The most concrete outcome was the signing of the agreement to establish the World Artificial Intelligence Cooperation Organization, headquartered in Shanghai. China also announced 5,000 AI training places for developing countries over the next five years, international AI application cooperation centers for major regional groupings, and broader cooperation on data, computing power, standards, ethics, and agent interoperability.
“China is moving AI governance from principles into institutions and implementation. The establishment of the World Artificial Intelligence Cooperation Organization, along with capacity-building pledges for developing countries, positions AI governance as a space where China can provide international public goods, strengthen Global South representation, and shape emerging rules around data, computing power, standards, ethics, and safety. For businesses, AI is no longer only about technology adoption; it is becoming a strategic and geopolitical issue shaped by industrial policy, governance expectations, and competing visions for the future AI architecture.”
Rachel Hsueh
Head of Strategic Communications, China
For more information about FTI’s Public Affairs services in China, please contact [email protected]
The European Commission adopts its Communication on the Competitiveness of the EU Banking Sector
- On 17 July, the European Commission adopted its Communication on the Competitiveness of the EU Banking Sector and the Single Market in Banking, setting out the direction of the legislative Banking Package expected in Q1 2027. In its Communication, the European Commission put greater emphasis on strengthening the EU’s strategic autonomy and competitiveness, while also linking together the importance of reform of banks and capital markets. On this specific point, the Communication suggests that the banking sector and capital markets shall develop in parallel to support financing the economy, including its strategic priorities, and to reduce reliance on foreign international banks for critical financial services.
- In terms of policy initiatives more broadly, the Communication outlines measures to facilitate cross-border banking through more efficient group-wide allocation of capital and liquidity, more consistent treatment of intragroup exposures and stronger enforcement against unjustified national interference in mergers and acquisitions, while preserving safeguards for depositors and resolution. It also proposes replacing the existing European Deposit Insurance Scheme proposal, reviewing the output floor and the treatment of software assets, specialised lending and investment firms, introducing a more proportionate regime for smaller banks, simplifying prudential, resolution and macroprudential requirements, and further integrating regulatory reporting. As a reminder, the communication is non-legislative; however, it indicates what could be included in the upcoming legislative proposal in Q1 2027.
- For further context, the European Commission Communication and the upcoming legislative proposal fit into its broader SIU strategy that aims to improve how the EU channels savings into productive investments. Therefore, the European Commission intends to simplify and further integrate the European banking sector based on a single rulebook and a completed Banking Union. This overall strategy is aligned with the EU’s Competitiveness Compass; the Single Market Strategy; and the One Europe, One Market roadmap.
“The Commission has been under pressure to find ways to simplify and enhance the competitiveness of the European banking sector, after the US and the UK repeatedly delayed the rollout of the global bank reforms. With the report and the upcoming legislative proposal, the Commission aims to create the right conditions and support EU banks to scale up, consolidate and compete globally.”
David Simon
Director, Brussels
For more information about FTI’s Public Affairs services in the EU, please contact [email protected]
India launches USD 13 billion Semicon 2.0 to strengthen domestic manufacturing
- India approved “Semicon 2.0” with an outlay of USD $13 billion to accelerate development of a domestic semiconductor ecosystem over the next six years. It builds on the initial Semicon India Programme launched in 2021, which catalysed the first wave of semiconductor investments, including fabrication, ATMP facilities and chip design support. Building on this, Semicon 2.0 broadens the ambition to develop an end-to-end semiconductor ecosystem over the next six years, structured around six pillars: chip design, semiconductor equipment and materials, fabrication, advanced packaging (ATMP/OSAT), research and development, and talent development.
- Semicon 2.0 reflects India’s ambition, from incentivising individual manufacturing projects under Semicon 1.0 to developing an integrated ecosystem spanning design, manufacturing, equipment, materials, research, and talent. The programme forms part of a broader industrial strategy to strengthen domestic capabilities across the semiconductor value chain while positioning India as a trusted partner in global semiconductor supply chains.
- India’s Ministry of Electronics & Information Technology that leads the programme has identified mature-node semiconductors (28nm and above) as a strategic opportunity, arguing that the segment offers the fastest and most commercially viable path to scale manufacturing. As companies look to diversify supply chains amid growing geopolitical uncertainty, India sees an opportunity to establish itself as an alternative manufacturing base for mature-node semiconductors before expanding into more advanced technologies.
“Semicon 2.0 demonstrates that India's semiconductor strategy is increasingly being shaped by both industrial policy and geopolitics. By strengthening capabilities across the semiconductor value chain while targeting mature-node manufacturing in initial stages, India is positioning itself as a trusted supplier for global companies seeking more resilient and diversified supply chains. The challenge now will be translating policy ambition into execution: building supplier ecosystems, enabling predictable project delivery and creating the conditions that give manufacturers confidence to make long-term investments in India.”
Amrit Singh Deo
Senior Managing Director, India
For more information about FTI’s Public Affairs services in India, please contact [email protected].
Germany approves major healthcare reform package to contain rising insurance costs
- Germany adopts first major healthcare financing reform under the new government: Germany has formally adopted the Statutory Health Insurance Contribution Rate Stabilisation Act after approval by both the Bundestag and the Bundesrat on 10 July. The reform aims to close an estimated €19 billion financing gap in Germany’s statutory health insurance (GKV) system in the short term and prevent further increases in health insurance contributions from 2027.
- Pharmaceutical industry faces higher mandatory rebates while government promises future competitiveness measures: For the pharmaceutical industry, the legislation confirms an increase in the statutory manufacturer rebate for innovative medicines to 15.5%, while the originally proposed dynamic rebate mechanism has been abandoned. At the same time, the governing coalition adopted a parliamentary resolution committing the government to develop measures to strengthen Germany as a pharmaceutical location, including possible exemptions from the additional manufacturer rebate and further incentives for research, clinical trials and investment. An interministerial expert group involving government, industry and academia is expected to present proposals by the end of September 2026, subject to EU state aid rules and the requirement to preserve the financial stability of the statutory health insurance system.
- Reform marks the beginning, not the end, of Germany’s healthcare overhaul: The legislation represents the first major healthcare reform of Health Minister Nina Warken (CDU) and one of the first significant welfare reforms of the new CDU/CSU-SPD coalition. While the government describes the package as an essential first step to stabilise healthcare financing, criticism remains widespread. Pharmaceutical companies warn that the higher mandatory rebates could weaken Germany’s attractiveness for investment, clinical research and early access to innovative medicines. Healthcare providers and patient organisations argue that the reform places additional financial pressure on providers and patients without addressing the structural drivers of rising healthcare costs. Political attention is therefore already shifting towards the government’s next round of structural healthcare reforms and the planned pharmaceutical and medtech dialogue, where longer-term competitiveness measures are expected to be developed.
“The adoption of the GKV reform marks the first major legislative success for Health Minister Nina Warken and an early test of the new coalition's ability to deliver politically difficult reforms. While the government has secured short-term financial stabilisation, it has simultaneously raised expectations for a broader competitiveness agenda for Germany's pharmaceutical and life sciences sector, particularly also in view of broader geopolitical development. The next phase will therefore be defined less by the savings package itself than by how the government follows through on its commitments to strengthen Germany as a location for research, manufacturing and innovation amidst a strained financial situation and international pressure.”
Hannah Hückstädt
Director, Germany
For more information about FTI’s Public Affairs services in Germany, please contact [email protected].
From Negotiation to the Ballot Box: The Political Gains of Diplomacy During Election Periods
- The U.S. 25% additional tariffs on Brazilian exports, effective July 22, 2026, have increased pressure on Brasília to choose between retaliation and negotiation. The measure, based on a U.S. trade investigation into Brazilian policies considered restrictive to American commerce, has raised concerns among economists and companies over the risk of further escalation. While the government considered activating Brazil’s Economic Reciprocity Law, the private sector has pushed for a more cautious approach. Brazilian companies with operations in the U.S. have emphasized the importance of direct engagement with American businesses, lawmakers and stakeholders to preserve commercial ties and avoid measures that could harm both economies. The perception is that reciprocal tariffs could worsen Brazil’s position by triggering additional U.S. restrictions, while diplomacy and technical negotiations remain the preferred path.
- Brazil’s exports to the European Union increased by US$2 billion in the first two months after the provisional implementation of the Mercosur-EU trade agreement, a 26% rise compared with the same period in 2025. Beyond the immediate boost in trade flows, the figures highlight a broader strategic shift: Brazil is accelerating efforts to diversify export destinations and reduce reliance on a few major markets, particularly amid growing uncertainty in global trade and weaker sales to the United States. The agreement is already creating opportunities across Brazilian states, especially São Paulo, which has identified 127 potential export expansions, mainly in manufacturing sectors. The growth in industrial goods, machinery, chemicals, and higher value-added products suggests that tariff reductions could help Brazil move beyond traditional commodity dependence. The agreement therefore represents not only increased market access, but also a step toward a more resilient and diversified trade strategy.
- Flávio Bolsonaro’s candidacy has lost momentum in recent weeks, raising concerns among Brazil’s private sector. The Bolsonaro-aligned candidate has delayed naming a running mate, but the prevailing view is that the choice of Vice President has become secondary, as doubts surrounding the candidate himself have grown. Key figures from the right-wing political establishment have been cautious about aligning themselves with Flávio, making more difficult to nominate a vice-presidential candidate. Much of this uncertainty stems from the Bolsonaro family’s handling of tensions with the U.S. government, during which they were, on several occasions, accused of acting against national interests. In recent weeks, Flávio has intensified his questioning of Brazil’s elections and electoral system, suggesting that, in the event of a defeat, challenges to the results should be anticipated — a strategy that previously by his father, who ended up penalized for it. Meanwhile, Lula has adopted a more diplomatic and conciliatory approach toward Brazil’s private sector, acting cautiously and seeking to maintain alignment with economic interests. He has also moved to avoid conflicts with Congress, signaling that his priority is securing politically supportive candidates to ensure governability during a potential fourth term.
“U.S. tariffs on Brazilian exports represent more than a commercial dispute — they reflect Washington's growing use of trade enforcement as a tool to pressure trading partners over regulatory and digital economy policy choices. Brazil's initial retaliatory response signals were quickly scaled back, demonstrating that the government has prioritized dialogue with Brazil's private sector, an approach that has previously delivered positive political and electoral gains. Even the possibility of invoking reciprocity law should be seen as a negotiation tool rather than a direct confrontation. This preference for a less confrontational stance has become even more relevant as Flávio Bolsonaro has been blamed for contributing to the escalation of tensions with the United States. This, together with corruption scandals, has affected his ability to build political alliances, as he and his allies have struggled to consolidate their political strategy, while an increasing number of right-wing leaders have become more cautious about aligning themselves closely with Flávio Bolsonaro. The focus of all Brazilian stakeholders is on lessening negative impact at the ballot box.”
Raquel Rocha
Senior Director, Brazil
For more information about FTI’s Public Affairs services in Brazil, please contact [email protected].
South Africa Secures US$1.5 Billion World Bank Loan to Accelerate Infrastructure Reform and Economic Growth
- South Africa has secured a USD $1.5 billion (approximately R27 billion) loan from the World Bank to support critical infrastructure reforms aimed at improving the reliability and performance of the country’s energy, freight transport and logistics sectors. The financing is intended to address longstanding infrastructure bottlenecks that have constrained economic growth, investment and industrial competitiveness. The agreement aligns with the government’s broader reform agenda, including commitments made by President Cyril Ramaphosa in the State of the Nation Address and reinforced by the Minister of Finance in the 2026 Budget to accelerate infrastructure investment as a catalyst for inclusive economic growth and job creation.
- The loan represents an important endorsement of South Africa’s structural reform programme at a time when the government is seeking to restore investor confidence and unlock greater private sector participation in the economy. Reliable electricity, efficient ports and rail networks, and improved logistics remain among the country’s most significant competitiveness challenges. By supporting reforms in these network industries, the financing complements initiatives such as Operation Vulindlela and the National Infrastructure Plan, recognising that modern infrastructure is fundamental to lowering the cost of doing business, increasing productivity, and strengthening South Africa’s position as a regional investment destination.
- Beyond the immediate financing, the agreement signals continued international confidence in South Africa’s reform trajectory and long-term economic potential. If effectively implemented, the infrastructure programme could help stimulate investment, improve service delivery, create employment opportunities, and strengthen the country’s productive capacity. More broadly, the development reinforces the government’s view that sustained infrastructure investment is central to achieving higher economic growth, enhancing competitiveness, and creating the enabling environment needed for long-term private sector-led development.
“This financing is significant not only because of its scale, but because it reinforces infrastructure reform as the cornerstone of South Africa's economic growth strategy. The government's recognition that energy, logistics and transport constraints are limiting investment and productivity reflects a more targeted approach to structural reform. Importantly, the World Bank's support also sends a broader signal that there is confidence in South Africa's reform agenda. The opportunity now lies in translating policy commitments into implementation that improves competitiveness, unlocks private investment, and delivers the sustained growth and job creation that government has identified as national priorities.”
Lelo Skosana
Head of Public Affairs, South Africa
For more information about FTI’s Public Affairs services in South Africa, please contact [email protected].
France Becomes First European Country to Ban Social Media for Under-15s
- France’s parliament has approved a law banning under-15s from social media from January 2027, making it the first European country to block young people from the platforms. The legislation requires all users in France to verify their age, with social media companies obliged to use tools approved by the French privacy regulator. The scope of the ban covers all social media platforms, instead of relying on a “blacklist” targeting specific social media firms.
- The ban will be implemented in two stages. From September, under-15s will be unable to open new accounts and age verification will be required for all new sign-ups. From January 2027, the rule will extend to existing accounts, meaning every user in France will need to prove they are over 15.
- France’s ban is significant as a signal of political intent, but questions remain over implementation. Australia introduced a similar measure for under-16s in December 2025, and early data suggests many young people have retained access to the platforms. France’s model, which relies on trusted third-party verification applied to all users, may prove more effective, though critics have raised concerns over privacy and data protection risks, as well as the possibility that restricting access to mainstream platforms pushes younger users towards less-regulated online spaces.
“Regardless of implementation challenges, this vote represents a significant achievement for President Macron, who has sought to cement social media regulation as a defining element of his presidency and to establish France as the driving force behind a European-wide movement. However, the introduction of age verification and identification requirements has raised concerns around democratic freedoms and free speech, sensitivities that are likely to sharpen as France's presidential election approaches. There is a risk that this measure reinforces that narrative, further eroding the appeal of centrist forces and providing ammunition to parties on the political extremes. More broadly, this law reflects a growing willingness among European governments to leverage the size and attractiveness of their markets to impose regulatory conditions on predominantly American technology companies.”
Augustin Gosset
Managing Director, Paris
For more information about FTI Consulting’s Public Affairs services in France, please contact [email protected].
Australian Government to set new standards for AI and data centres
- The Australian Government announced a suite of new measures to manage the impact of data centre developments and artificial intelligence (AI) with a view to ensuring the technology works in Australia’s interest.
- The Government will establish an Office of AI within the Prime Minister’s own department to coordinate AI policy across government and create new national standards for AI that will deliver a consistent regulatory framework for large data centres and AI training.
- The new standards will set out clear rules for large data centres, including a requirement to underwrite their own new power supply, pay their share of connection costs, reduce power when needed to strengthen the grid, and be as water efficient as possible. This will also involve collaboration between all levels of government to ensure large data centres are built in appropriate locations following consultation from local communities.
- Prime Minister Antony Albanese has also reiterated the government’s commitment to protect Australian artists, musicians and journalists by helping them retain ownership and control of their works in the AI age.
- The new approaches will be considered by Australia’s state and territory leaders at a meeting of National Cabinet in August, with standards expected to be legislated early next year.
“These announcements aim to put guardrails around key aspects of AI, and to ensure there is coordination across all levels of Government. For data centre developers and operators, they provide clear guidance on what the Federal Government wants to see from this rapidly growing and increasingly critical infrastructure sector.”
Ben Hamilton
Head of Public Affairs, Australia
New Colombian Congress begins amid leadership shake-up and fragmented majorities
- Colombia’s new Congress (2026–2030) was sworn in on July 20, with 103 senators and 183 representatives taking office. Senator Honorio Henríquez (Centro Democrático) was elected Senate President after defeating government-backed candidate Alfredo Deluque, while Nicolás Barguil (Partido Conservador) was elected President of the House of Representatives.
- No single party holds a majority, making coalition-building essential for passing legislation. Although President-elect Abelardo de la Espriella enters office with support from several center-right parties, the Senate leadership vote exposed divisions within his coalition and highlighted the fluid, highly negotiated nature of congressional alliances.
- The new Congress now faces a demanding institutional and legislative agenda. In the coming weeks, lawmakers must appoint committee chairs, elect the Comptroller General and members of the National Electoral Council (CNE), and begin debating the incoming administration’s key priorities, including a possible tax reform, the 2026–2030 National Development Plan, public spending and fiscal adjustment measures, state restructuring, security reforms, and sector-specific regulatory proposals.
“For the private sector, the new Congress will be the primary arena where the incoming administration's priorities are translated into law. In a fragmented legislature with no stable majority, legislative outcomes will depend on shifting coalitions, committee dynamics, and the influence of individual lawmakers rather than party discipline alone. Companies should therefore move beyond monitoring government announcements and closely map committee leadership, key rapporteurs, influential legislators, and cross-party alliances relevant to their sectors. Early stakeholder engagement, continuous legislative intelligence, and scenario planning will be critical to anticipating regulatory changes, identifying emerging risks and opportunities, and informing effective public affairs and advocacy strategies.”
Jorge Del Castillo
Managing Director and Head of Strategic Communications, Colombia
Spain sets long-term framework for renewable fuels in transport
- The Spanish Government has approved a Royal Decree establishing annual obligations for transport fuel suppliers through 2040. Transposing the transport provisions of RED III, the framework covers road transport, domestic shipping and non-electrified rail, while incorporating the EU targets for sustainable aviation fuels.
- For road transport, suppliers must deliver a 17.6% reduction in greenhouse gas emissions by 2030 and 30% by 2040. Advanced biofuels, biogas and renewable fuels of non-biological origin must jointly represent 8% of supplied energy by 2030 and 22% by 2040, with additional sub-targets for specific fuels.
- The decree creates a certificate market through which renewable hydrogen producers and charging-point operators can sell credits to obligated fuel suppliers. It also introduces e-credits for renewable electricity used by electric vehicles, strengthens sustainability and traceability requirements across the value chain, and classifies non-compliance as a very serious infringement.
“The new framework provides a clearer view of how Spain intends to decarbonise the share of transport that will continue to depend on fuels. Its 2040 horizon gives producers, fuel suppliers and infrastructure operators greater visibility over future demand, while the certificate system opens additional routes to market for renewable hydrogen and electricity. Implementation will now be decisive: the value of these signals will depend on how the certification and trading mechanisms operate in practice, as well as on the availability and cost of the required fuels. The differentiated targets across road, maritime, rail and aviation transport also mean that the commercial implications will vary considerably between sectors.”
Carlos Ochoca
Head of Public Affairs, Spain
For more information about FTI Consulting’s Public Affairs services in Spain, please contact [email protected].
U.S. updates Hong Kong sanctions following expiry of Executive Order 13936
- On 17 July, the US Department of the Treasury’s Office of Foreign Assets Control announced changes to sanctions imposed on 48 Hong Kong and mainland Chinese officials following the expiry of Executive Order 13936, issued in 2020. All 48 individuals were removed from OFAC’s Specially Designated Nationals and Blocked Persons List. However, 39 were immediately added to the Non-SDN Menu-Based Sanctions List, while the remaining nine are no longer subject to OFAC sanctions.
- For the 39 transferred individuals, including senior serving and former Hong Kong officials, their property and interests in property remain blocked. Any US persons generally remain prohibited from conducting transactions with them, and financial institutions may continue to face secondary sanctions risks for significant transactions. The principal change is the legal basis and administrative classification of the measures, where now sanctions against these individuals rest on the Hong Kong Human Rights and Democracy Act of 2019 and the Hong Kong Autonomy Act of 2020, rather than Executive Order 13936. The nine individuals removed from sanctions include Secretary for Justice Paul Lam, former police commissioners Raymond Siu and Stephen Lo, and officials associated with national security bodies.
- Reactions were swift. The Hong Kong government promptly welcomed the decision as a positive adjustment and called for stronger economic and trade engagement with the U.S., while advocacy group Hong Kong Watch criticized the non-renewal and urged the US administration to reconsider.
"The expiry of Executive Order 13936 is somewhat significant, but businesses should not interpret it as signs of a gradual normalization of the US sanctions or trade framework for Hong Kong. Although nine individuals have been removed from OFAC sanctions, the restrictions affecting the other 39 remain substantially the same under the Hong Kong Human Rights and Democracy Act of 2019 and the Hong Kong Autonomy Act of 2020. Companies should update screening systems carefully, and consider verifying how affected individuals are classified, and continue treating export controls and Hong Kong's wider trade status as separate compliance issues."
Seulah Han
Managing Director, Hong Kong and South Korea
Zimbabwe expands lithium export infrastructure to strengthen regional trade and critical minerals value chains
- Zimbabwe has commissioned a USD $15 million lithium rail siding and introduced a new freight rail option connecting the Gwanda Lithium Mine to the Port of Maputo in Mozambique, strengthening the country’s mineral export infrastructure and logistics capacity. The development forms part of Zimbabwe’s broader efforts to modernise transport infrastructure, improve the movement of critical minerals to international markets, and support its ambitions to derive greater value from one of the world’s fastest-growing strategic commodities. As Africa’s largest lithium producer, the investment reinforces Zimbabwe’s position in the global battery minerals supply chain while improving the efficiency of one of Southern Africa’s key trade corridors.
- The project reflects a broader trend across Africa, where governments are increasingly investing in strategic infrastructure and pursuing public-private partnerships to unlock economic growth, strengthen regional connectivity, and support industrialisation. Reliable rail and logistics networks are becoming essential to developing regional value chains and reducing the cost of moving minerals to domestic processing facilities and export markets. For Zimbabwe, improving transport infrastructure complements wider policy efforts to encourage local beneficiation and position the country to capture greater value from its critical mineral resources.
- Beyond its national significance, the development reflects the growing strategic importance of Africa’s critical minerals in the global energy transition. With the continent holding some of the world’s largest reserves of lithium, cobalt, copper and other essential minerals, African governments are increasingly investing in the infrastructure needed to move these resources more efficiently and competitively. For Zimbabwe, strengthening rail connectivity is not only about improving exports, but also part of a broader effort to capture greater value from rising global demand, attract long-term investment, and integrate more effectively into regional and global critical minerals value chains. The project also reinforces the importance of transport corridors in enabling intra-African trade, regional industrialisation, and supply chain resilience.
"Zimbabwe's latest rail investment reflects a broader shift taking place across Africa, where infrastructure is increasingly being recognised as the missing link between mineral wealth and sustainable economic growth. Governments are no longer focused solely on extracting resources, they are investing in the transport corridors, logistics networks and public-private partnerships needed to strengthen regional value chains and improve competitiveness. As demand for critical minerals continues to reshape global supply chains, countries that can successfully connect infrastructure, beneficiation and regional trade will be best positioned to capture long-term economic value."
Lelo Skosana
Head of Public Affairs, South Africa
For more information about FTI’s Public Affairs services in Zimbabwe, please contact [email protected].
Expert Analysis |
All Roads Lead North: Burnham’s Blueprint for Britain
Since his by-election win in Makerfield in June, Andy Burnham’s march towards 10 Downing Street became an increasingly straightforward one. With the overwhelming backing of the Parliamentary Labour Party, today Burnham achieved his long-standing ambition of becoming Prime Minister.
In our latest UK Public Affairs Snapshot, our experts examine the appointment of the UK’s new Prime Minister, the implications for the political landscape, and what the change in leadership could mean for government policy, business and the wider economy.
Know Your Risk: Business Implications of Mexico’s Judicial Reform
Mexico’s judicial landscape has changed and so has the risk environment for businesses operating in or entering the market.
The unprecedented popular elections of all judges in Mexico last year will have far-reaching implications for companies in terms how to approach risk assessment and mitigation. With newly elected judges and justices now taking office, businesses must proactively prepare for an evolving legal and regulatory framework.
Our experts examine what these reforms mean in practice and provide a framework for navigating the challenges and opportunities ahead.
NATO Summit 2026
Last week’s NATO Summit in Türkiye marked a significant shift in how the Alliance articulates its value in a more uncertain world.
In our latest snapshot, our Public Affairs experts assess how Allies used tangible investment and evidence of concrete capability development to demonstrate greater burden-sharing and reinforce transatlantic unity, presenting NATO as a driver of both collective security and economic growth.
What Does a Recent Tender Say About Solar in Mexico?
Mexico’s Federal Electricity Commission (CFE) concluded its first bidding process under a new renewable energy investment scheme in early June, with solar photovoltaic projects dominating the awarded capacity, followed by wind energy.
Our own Arantza Alonso joined industry experts to share insights on what the tender signals for Mexico’s energy landscape and the future of renewable energy development in the country.
Real World Experience
Drawing on experience spanning five presidential campaigns and service in the White House, Jackson Dunn understands how clear, disciplined communication can help organizations navigate political uncertainty and high-stakes moments.
Today, Jackson advises corporations and private firms on political risk across complex transactions, crises, government investigations and regulatory change.
Who’s who in Burnham’s cabinet?
Mexico’s Federal Electricity Commission (CFE) concluded its first bidding process under a new renewable energy investment scheme in early June, with solar photovoltaic projects dominating the awarded capacity, followed by wind energy.
Our own Arantza Alonso joined industry experts to share insights on what the tender signals for Mexico’s energy landscape and the future of renewable energy development in the country.
Upcoming Elections
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