The U.S.-China relationship faces its most serious challenges in four decades (SCMP), said Chinese foreign minister Wang Yi, calling for reconciliation between the two countries. 

Bilateral ties have frayed over China’s new national security law for Hong Kong, human rights abuses in the Xinjiang region, the coronavirus pandemic, militarization of the South China Sea, and trade. During a speech in Beijing, Wang urged “positive energy” (Reuters), while criticizing U.S. policy toward China. He proposed that think tanks in both countries compile three lists: one of issues where the United States and China can cooperate, the second of resolvable disputes, and the third of irreconcilable differences. Analysts said the comments suggest that Beijing wants to ease tensions with Washington (FT).

Australia moved to suspend its extradition treaty with Hong Kong (SCMP) and plans to offer ten thousand Hong Kongers currently on student or temporary visas a pathway to residency in response to China’s new national security law for the city.

The Afghan government will release more Taliban prisoners (Reuters) in hopes of starting intra-Afghan peace talks after the militant group submitted a revised list of detainees. The releases are part of a deal negotiated between the Taliban and the United States.
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Seth G. Jones examines the possibilities for an intra-Afghan peace deal in this CFR report.

Pakistan: Under pressure from Muslim clerics, the government backtracked on a plan to build a Hindu temple in Islamabad (NYT) that was meant to be a symbol of religious tolerance.

The UN Security Council rejected a Russian proposal to limit aid to Syria from Turkey (Reuters) to just one border crossing after the United States urged members to vote against it. The current authorization for aid at two crossings ends tomorrow, but another council member will likely propose a six-month extension, diplomats told Reuters.
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Lebanon: The United States released a Lebanese businessman accused of financing Hezbollah (Al Jazeera) from detention due to concerns about the coronavirus pandemic.

The prime minister of the Ivory Coast, Amadou Gon Coulibaly, died yesterday (NYT). He was sixty-one. Coulibaly’s death adds uncertainty to the country’s elections in October, as he was expected to be the ruling party’s candidate.
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DRC: Plans to appoint a new head (Al Jazeera) to the country’s electoral commission have sparked protests in two cities. The opposition has accused Ronsard Malonda, whose appointment awaits presidential approval, of helping rig prior elections.

German Chancellor Angela Merkel, whose country recently began chairing European Union meetings, said the pandemic has exposed the limits of “fact-denying populism” (WaPo) in a speech to the European Parliament. She also urged the bloc to “waste no time” in approving a massive economic recovery plan.
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UK: Finance minister Rishi Sunak unveiled a $37.9 billion spending plan (Guardian) to boost the economy, but many said it did not go far enough in preventing mass unemployment.

U.S. President Donald J. Trump struck a warm tone (NYT) during a meeting with Mexican President Andres Manuel Lopez Obrador, known as AMLO, despite Trump’s previously hostile rhetoric on immigration. AMLO said the two countries were setting aside their differences and that Trump, who is unpopular in Mexico, was kind and respectful.

Argentina: Economy Minister Martin Guzman ruled out changes (Buenos Aires Times) to the country’s latest offer to restructure some $65 billion in debt even though some creditors have expressed dissatisfaction. The deadline to accept the offer is August 4, though it has been repeatedly extended.
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CFR’s Brad W. Setser explains Argentina’s debt restructuring.

The Trump administration proposed new rules that would prevent migrants from seeking asylum (WSJ) in the United States if they traveled from or through a country with widespread contagious disease, such as COVID-19. The move would effectively block all asylum seekers at the southern border.

Eight candidates have been put forward to be the next director general of the World Trade Organization (WTO) after the nomination period ended yesterday (Bloomberg). The body’s next leader will need to steer the organization out of the worst crisis in its history.
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This CFR Backgrounder explains what’s next for the WTO.