Authored by Steve Watson via Modernity.news,

Spain is sliding deeper into migrant-fueled disorder. Crowds of illegals have now stormed the Gambian embassy in Madrid, climbing over each other, scaling walls and fences to grab paperwork after socialist Prime Minister Pedro Sánchez’s government opened the floodgates with legal status for half a million of them.

Registry offices across the country are overwhelmed, social services are on the brink, and the chaos is exactly what critics warned would happen.

This latest outbreak comes just days after the regularization process kicked off. Thousands lined up for hours—or camped overnight—at more than 400 locations in regions like Catalonia, Andalucia, and Asturias. Many are still waiting for their documents to be stamped. But the rush turned frantic at the Gambian embassy on Tuesday when dozens of migrants, unable to secure needed vulnerability certificates, scaled the walls after learning all appointments were already booked.

🇪🇸🇬🇲 | Gambian immigrants storm their embassy in Madrid due to the collapse in the issuance of documents for Sanchez’s extraordinary regularization in Spain.

Inmigración de calidad 👌 pic.twitter.com/QTDbkqj27f

— BowTiedMara (@BowTiedMara) April 29, 2026

Panic set in. Police had to intervene to restore order. No arrests were made, and authorities are now keeping a close eye on the area for more attempts. The scenes, captured on video and shared widely on X, show the raw desperation the policy has unleashed.

As we detailed in our earlier reports, this is no surprise. Spain’s services were already crumbling under the weight of military-aged male migrants overwhelming registry offices.

Thousands have swarmed consulates in cities like Madrid, Bilbao, and Almería after the amnesty was first announced. Now the embassy walls are the new frontline.

Municipal unions in Seville warned last week of “extraordinary pressure” and overcrowding that is “lowering service quality and creating high tension among staff and the public in the Andalusian city.” They are pleading for more staff, better security, and compensation for workers facing the mess.

In Madrid, the pressure is even more glaring. Jose Fernandez, municipal delegate for Social Policies, told 20minutos: “We’ve gone from 1,500 daily requests at social services centres to 5,500. I think a hasty decision was made, perhaps even intended to create a collapse.” He added the process launched “without consulting the relevant authorities” and said, “I believe the best course of action would be to withdraw this decree and implement it through consensus.”

More absolutely mental scenes from Spain… https://t.co/U3iH1jEc0o

— m o d e r n i t y (@ModernityNews) April 23, 2026

Spain’s 50 million population now includes around 10 million foreign-born residents. There are still roughly 840,000 undocumented migrants, mostly from Latin America. The government claims the amnesty will harness economic benefits for an ageing country. Sánchez himself wrote in an open letter: “Spain is ageing… Without more people working and contributing to the economy, our prosperity slows, and our public services suffer.”

He doubled down at a progressive summit in Barcelona, telling critics: “Spain is the daughter of migration and will not become the mother of xenophobia.”

🚨 The man who destroyed Spain, Pedro Sánchez smugly defends fast-tracking HALF A MILLION migrants:

“We are the children of migration in Spain… we will not be the parents of xenophobia… we are proud to be on the right side of history.”

Classic globalist treason — cheering the… pic.twitter.com/p0EsXL6CM6

— Don Keith (@RealDonKeith) April 18, 2026

But the right-wing opposition sees it differently. Vox spokesman Pepa Millán said the plan “attacks our identity” and vowed to appeal to the Supreme Court. Vox leader Santiago Abascal has called it an accelerating “invasion.” The Popular Party’s Isabel Díaz Ayuso, president of Madrid, threatened her own court challenge.

The economic picture tells its own story. Spain’s unemployment has dipped below 10 percent for the first time since 2008, but about 90 percent of new jobs go to immigrants while income per person has barely grown. The country adds 140,000 new households each year but builds only around 80,000 new homes—fueling a housing crisis that hits native Spaniards hardest.

This is the same pattern playing out across Europe: leftist governments signal weakness, migrants pour in, systems buckle, and citizens foot the bill. Sánchez’s progressive agenda may dress it up as “justice” and economic necessity, but the pictures from Madrid’s streets and embassy walls show the reality—uncontrolled inflows reward law-breaking and strain every public service.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Did the UAE just trigger a once in a century shift in global energy markets?  The United Arab Emirates on Tuesday said it was quitting OPEC by May 1st after 60 years as a member, dealing a blow to the cartel ​as the Iran war exposes discord among Gulf nations and Iran.

The exit of the UAE, one of the group’s biggest producers with 15% of total exports, weakens ‌OPEC’s control over global oil supplies and widens a rift between the UAE and Saudi Arabia.  Furthermore, the dissolution of OPEC greatly hinders Iran’s ability to wield oil exports as economic leverage in the future.  

The name of the game for OPEC is zero competition and artificial supply scarcity.  OPEC was formed in the 1960s as a trade consortium of oil producers but it became an economic weapon in the 1970s to maintain pressure on the US and any other nations providing aid to Israel.  This led to a stranglehold on 40% of the global oil supply and an initial explosion in gas inflation.  Prices quadrupling at the pump, feeding into a decade long stagflation event.

Restricted exports became the status quo, and higher prices the norm in the decades since (with brief moments of relief).  Iran, by extension, has long benefited from this bottleneck as an OPEC member.  But the world of energy just changed dramatically. 

An independent UAE no longer constrained by OPEC limits now has the ability to increase production from 3 million barrels a day to over 5 million barrels per day.  The introduction of renewed competition is likely to inspire higher production rates in Saudi Arabia as well.    

In his first public comments since the announcement, UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters in ​a telephone interview that the decision was taken after examining the country’s energy strategies. He said the UAE had not discussed the issue with any other country. “This ​is a policy decision, it has been done after a careful look at current and future policies related to level of production,” ⁠Mazrouei said.

He also said the world would demand more energy, implying the UAE would be positioned to meet that need.  Meaning, the UAE is attempting to strategically jump ahead of the competition in a bid to flood markets with oil as the situation in the Hormuz winds down.  Saudi Arabia has also stated intentions to boost production into 2027.  

This suggests that the post-Iran war era will be a supply side bonanza with far lower energy prices over the course of the next two years.  It could be a complete upending of the last 50 years of throttled markets.  

The UAE is well positioned to weather the crisis in in the Hormuz with its Habshan–Fujairah (ADCOP) pipeline, which bypasses the Hormuz entirely and moves around 2 million barrels per day.  The advantage allows them to lead the export pack when the war ends.  

An inevitable ramp up in competitive production in the Gulf as well as fading opposition to increased drilling and refinement in the US will lead to long term energy security for the west.  However, the short term view is less rosy.  In the best case scenario, with the Hormuz reopened within the next two months, shipping through the strait will still need to recover until the end of 2026.  

Gas prices would fall to around $3.50 per gallon by the end of the year, with prices dropping below $3 per gallon in 2027.  Beyond 2027, the drop in prices will be significant; the breakup of OPEC’s largest contributing members is an unprecedented market event with world changing ramifications.

The Iran war is a primary contributor to this shift, but in order to gain any benefits the Hormuz will have to reopen sooner rather than later.  The greater strategic picture is the end of Iran’s oil leverage, which the regime will seek to resist as much as possible. 

Recent reports of a “tank top” and Iran’s dwindling storage capacity make negotiations a priority for the regime, otherwise, the loss of oil wells caused by shutdowns and pressure damage could ruin their ability to export for years to come.  It would seem that the UAE and other Gulf exporters are positioning for this eventuality.    

Authored by Kit Knightly via OffGuardian.org,

While embattled PM Sir Keir Starmer takes a pointless grilling on the even more pointless existence of Peter Mandelson, other members of his cabinet were busily paving the way for the next construction phase of our increasingly dystopian society.

Speaking to Sky News earlier today, Education Secretary Bridget Phillipson promised…

“more action to keep young people safe online, including around social media”.

Which is delightfully vague.

Education Minister Olivia Bailey kept her cards similarly close to her chest, whilst trying to sound forceful:

“It is a question of how we act, not if, but to put this beyond any doubt, we are placing a clear statutory requirement that the Secretary of State ‘must’, rather than ‘may’, act […] We are clear that under any outcome, we will impose some form of age or functionality restrictions for children under 16.”

So we know they’re going to do something…we just don’t know what. And, if I had to guess, neither do Bridget or Olivia. Neither seems like the kind of people that get kept in the loop, and that flavour of waffle is usually the reserve of those who have no idea what’s going on.

Many commenters – both for and against – have interpreted this promised action as an Australia-style social media ban for children. Certainly, that’s what Conservative MP Laura Trott seems to think in her champagne-popping tweet:

…but the signs might be pointing in another direction.

After all, the Social Media Ban is practically on the books. It was introduced as an amendment to the Children’s Wellbeing and Schools bill, and has already passed the Lords four times. It could have become law already, but Ministers and MPs have repeatedly overturned the vote, declaring the need for further consultation.

Then, earlier today and coinciding with this government pledge to take action, the Independent published a report that suggests Australia’s social media ban doesn’t work.

Two thirds of Australian teens still using social media despite under-16s ban

The article quotes the head of the Molly Rose Foundation, who warns “an Australia-style ban would not deliver the improvements in online safety that parents and children deserved”:

“These results raise major questions about the effectiveness of Australia’s social media ban and show it would be a high stakes gamble for the UK to follow suit now,” the foundation’s head Andy Burrows said.

“Proponents of a ban argue it offers an immediate and decisive firebreak but the early evidence from Australia shows it only lets tech firms off the hook and fails to give children the step change in online safety and wellbeing they need.”

That’s interestingly timed, don’t you think? Why discredit the ban if the plan is to follow suit?

Sky’s article has their Technology Reporter list potential alternatives, including bans on infinite scrolling, or “digital curfews” that lock children’s accounts after a certain time.

It would be reasonable to assume, based on this, that whatever the UK government eventually does will be somehow…different. Perhaps stricter or enforced differently, perhaps centered on devices rather than platforms.

There are plenty of possibilities.

The head-scratching question is “why?”, and the only answer I can see that makes any sense is that Independent is telling the truth and Australia’s ban doesn’t work –  i.e for its real intended purpose (mass surveillance).

Maybe, and this is rampant speculation, but maybe the inevitable uptick in VPN usage actually made it harder to track people’s data and activity to the extent it offset the utility of and effort required in enforcing the ban.

Like I said, speculation, but we have an explanandum in need of an explanation.

Of course, it could be argued the specifics don’t really matter – because no matter the legislation or regulation, it can only be enforced one way: By mandating age verification for everybody, and using that to introduce digital IDs.

If it’s all heading in the same direction in the end, maybe picking apart the details is a waste of our time, maybe the differences only exist to create the illusion of variety or impression of dissenting views.

But it could be there’s something to learn, and perhaps in reading the wrinkles there’s insights to be gained that could help us resist when the government finally tell us what “restrictions” they’re putting in place.

What people take pride in says a lot about how they see their country.

Across Europe, those sources range from culture and history to political systems and personal freedoms. But in some countries, a notable share of people say they feel little pride at all.

This visualization via Visual Capitalist, by The European Correspondent, based on Pew Research Center data, breaks down the top three sources of national pride in each country surveyed.

Top Sources of National Pride, by Country

Here’s a closer look at the top three sources of national pride cited by adults in each country:

Culture dominates in countries like Italy (38%) and France (26%), while history plays a major role in Greece (37%). Meanwhile, Sweden stands out with 53% citing politics—by far the highest single-category share.

The Core Drivers of Pride Across Europe

In much of Europe, national pride is rooted in shared identity and heritage. Southern European countries like Italy and Greece emphasize culture and history, reflecting their deep historical legacies and global cultural influence.

Elsewhere, people themselves are a key source of pride. Spain (32%) and France (24%) rank highly in this category, suggesting a strong sense of national community and social cohesion.

Where National Pride Is Weakest

Not all sentiment is positive. In the UK, 29% of respondents cite “negative feeling” when describing their country, which is higher than any single positive category. Hungary (23%) and Spain (25%) also show notable shares of dissatisfaction.

This aligns with broader research. According to Pew, individuals who express less pride are often those who do not identify with the governing political parties. In the UK specifically, findings from British Social Attitudes surveys suggest national identity has become more fragmented in recent years, often tied to political divisions.

These dynamics help explain why politics can be both a source of pride—as in Sweden—and frustration, as seen elsewhere.

Politics as a Source of Pride—and Division

Sweden stands out sharply, with 53% of respondents citing politics as a source of pride, which is the highest share of any single category in the dataset.

Germany (36%) follows at a distance. Meanwhile, in other countries, political dissatisfaction helps explain rising negative sentiment, particularly among those who feel disconnected from leadership.

Via Remix News,

Two German cities, Berlin and Hamburg, have spent at least €4 billion to house migrants since 2022, with the cost of hotels proving to be especially high.

In Hamburg, the cost to house asylum seekers alone has amounted to €597 million. In 2025 alone, the costs of hotel accommodation and meals for asylum seekers in Hamburg was €160 million, which does not include security and administrative costs.

However, that is just for hotels. It costs Hamburg approximately €1 billion per year when other accommodations are factored in, such as container villages, asylum centers, and state-run units.

The data on hotel costs was released in a Senate response to a parliamentary inquiry by the AfD, according to Nius news outlet.

The Senate noted that the city first utilized hotels for refugee housing in late February 2022, but the figures are drawing the ire of the AfD. Thomas Reich, the AfD parliamentary group’s budget policy spokesman, pointed out that asylum seekers are creating “ever larger budget holes.”

The Hamburg Senate cited Russia’s war in Ukraine, which required the rapid and significant creation of asylum seeker spots, but the goal, according to the Senate, is to move them out of hotels and into other forms of housing.

Notably, hotels are not the only accommodations that taxpayers are paying for, which means the total cost of housing is far higher than the €593 million figure, which only pertains to hotel costs.

Berlin

Hotel rentals for asylum seekers are perhaps the most expensive housing solution in all Western countries. While a container village costs approximately €20 per person per day, the average price for a hotel or hostel spot is €60. As a result, Berlin has sought to move away from hotel rentals. As of 2025, Berlin’s State Office for Refugee Affairs (LAF) reported housing between 3,300 and 3,500 people in hotels or hostels.

The total figures for Berlin regarding only hotel places are not currently available, but the total cost for the accommodation, care, and integration of refugees in the capital between 2022 and 2025 has reached an incredible €2.24 billion. As Remix News reported last year, the cost for housing migrants in the city had reached nearly €1 billion a year.

Berlin’s senator for integration, Cansel Kiziltepe, confirmed that the city had rented 20 hotels but advocated for a change in strategy:

“I have said again and again: It is more cost-effective for the state of Berlin if we accommodate people in decentralized accommodation – whether in containers or in buildings…I fear that accommodation in hotels and hostels could become a case for the State Audit Office.“

When the Berlin and Hamburg expenses are totaled since 2022, they equal at least €4 billion, but the true cost is actually higher when administrative and security are factored in, not to mention education, welfare transfers, and healthcare.

In total, Germany spends over €50 billion a year on migrants, including accommodation, education, integration, social welfare, and other costs.

Read more here…

The US Senate batted down a resolution on Tuesday that would bar President Trump from being able to attack Cuba without first obtaining Congressional approval.

After Sens. Tim Kaine (D-Va.), Adam Schiff (D-Calif.), and Ruben Gallego (D-Ariz.) invoked the 1973 War Powers Act to force the Senate vote on Tuesday (undoubtedly knowing it would fail) – citing the recent US combat operations in Venezuela and Iran, and Trump’s March comments that “Cuba’s next” – Senators voted 51-47 against advancing it to a final vote. 

Similar votes related to US military actions against Venezuela and Iran have also failed in the GOP-controlled Senate in recent weeks. 

As the Epoch Times notes further, U.S.–Cuba relations have remained contentious since Fidel Castro swept to power in Havana in 1959 at the head of a communist revolution.

The U.S. government led efforts to overthrow Castro in the 1960s. CIA officers helped arm and train Cuban exiles who led a failed invasion to retake the country in April of 1961. After this failed invasion attempt, the CIA continued to develop covert methods to weaken Castro’s hold on power through an effort known as Operation Mongoose.

Since the 1960s, the U.S. government has maintained pressure on Cuba through economic sanctions and trade restrictions.

Under Castro’s leadership, Cuba aligned with the Soviet Union.

Under the current leadership of Miguel Díaz-Canel Bermúdez, Cuba has continued to maintain ties with Russia, China, and Venezuela.

Havana acknowledged 32 Cuban soldiers attached to Nicolás Maduro’s security detail were killed during the Jan. 3 U.S. military raid to capture the Venezuelan leader.

Trump signed an executive order on Jan. 29 declaring Cuba “an unusual and extraordinary threat” to the national security and foreign policy of the United States. The order notes Cuba’s continued military cooperation with China, Russia, and Iran, and asserts Havana has welcomed designated terrorist groups like Hamas and Hezbollah.

As part of his Jan. 29 executive order, Trump imposed new tariffs on countries selling oil to Cuba. The Caribbean island nation has faced recent blackouts as it has struggled to maintain its energy supply.

“Donald Trump has bypassed Congress’s sole authority to declare war with attacks on Iran and Venezuela,” Schiff said ahead of the Tuesday vote. “The president’s saber rattling toward Cuba makes clear where his sights are next.”

Sen. Rick Scott (R-Fla.) took to the Senate floor to challenge the Democrat-led war powers resolution, arguing that the measure lacks relevance because U.S. troops aren’t currently deployed in Cuba.

“President Trump has never said he wants to put boots on the ground. I don’t think any of my Republican colleagues have said it. Even Lindsey Graham has not said it,” Scott said.

Though Trump recently referred to a potential “takeover” of Cuba, Gen. Francis Donovan, who oversees U.S. military operations for Latin America, testified at a March 19 Senate hearing that his command is not actively preparing for a military operation involving the island.

US Central Command has asked to send the Army’s long-delayed Dark Eagle hypersonic missile to the Middle East for possible use against Iran, seeking a longer-range system to hit ballistic-missile launchers deep inside the country Bloomberg reports. 

If approved, this would mark the first time the US will have deployed its hypersonic missile, which is running far behind schedule and hasn’t been declared fully operational even as Russia and China have deployed their own versions. And since Trump isn’t shy when it comes demonstrating force, it is unlikely that the request will be denied. 

The military’s Request for Forces submission reportedly justifies the move by saying Iran has moved its launchers out of range of the Precision Strike Missile, a weapon that can hit targets at more than 300 miles. If approved, the deployment would also send a signal to Russia and China that the US is finally able to match a capability that they’ve long since mastered. 

Dark Eagle, also known as the Long-Range Hypersonic Weapon, or LRHW, has a reported range of more than 1,725 miles, although its exact capabilities are secret. It is designed to glide to its target at more than five times the speed of sound and can maneuver to avoid interception. The missile was designed to fight Chinese or Russian advanced air defenses. The problem is that each Lockheed Martin missile costs about $15 million, and there are no more than eight missiles, so any assault using hypersonics would be rather brief. Also, since each battery will cost about $2.7 billion, according to the Government Accountability Office, they will make attractive targets for Iran’s own hypersonics. 

The US already transferred most of its supplies of the stealthy JASSM-ER cruise missile, also designed for a fight with a near-peer adversary, to the Iran fight. About 1,100 of the missiles have been fired so far in the conflict.

The US has said it has local air superiority, meaning that in some parts of Iran its aircraft can operate without facing much of a threat. But dozens of MQ-9 aircraft, plus several crewed fighters, have been downed, showing that other parts of Iran’s airspace remain dangerous.

The Bloomberg report comes as Axios rehashed an earlier report, according to which President Trump will receive a briefing on new plans for potential military action in Iran on Thursday from CENTCOM Commander Adm. Brad Cooper. The briefing signals that “Trump is seriously considering resuming major combat operations either to try to break the logjam in negotiations or to deliver a final blow before ending the war.”

The report goes on to note that CENTCOM has prepared a plan for a “short and powerful” wave of strikes on Iran – likely including infrastructure targets – in hopes of breaking the negotiating deadlock. The hope would be that Iran would then return to the negotiating table showing more flexibility on the nuclear issue.

Another plan expected to be shared with Trump is focused on taking over part of the Strait of Hormuz to reopen it to commercial shipping. Such an operation could include ground forces.

A third option that has been discussed in the past and might come up in the briefing is a special forces operation to secure Iran’s stockpile of highly enriched uranium.

Via Middle East Eye

A former head of Israel’s Mossad intelligence agency has said that settler violence against Palestinians in the occupied West Bank reminds him of the Holocaust.

Tamir Pardo, who served as director of Mossad from 2011 to 2016, made the remarks in an interview with Channel 13 while touring Palestinian villages affected by ongoing settler attacks, alongside former Israeli army officials. “My mother was a Holocaust survivor, and what I saw reminded me of the events that happened against Jews in the last century,” he said.

“What I saw today made me feel ashamed to be Jewish.” Pardo warned that settler crimes – met with little response by authorities, which sometimes abet them – could lead to the “next October 7”.

“It will be in a different format, much more painful, because the region is much more complicated. The state has chosen to sow the seeds for the next October 7,” he said. 

While he believes Israeli law enforcement is aware of the situation, Pardo suggested that it has “chosen to ignore it”.

“What I saw today is the existential threat to the State of Israel,” he said, noting that efforts to curb such attacks could come at a high cost, including the risk of civil war.

He pointed in particular to the influence of settler groups, which enjoy support at the highest levels of government, including from far-right ministers such as Bezalel Smotrich and Itamar Ben Gvir.

“If we want, we can correct this, but the price will be very high,” Pardo said. “It is very much in our interest not to reach that point.”

‘Corruption of Israeli society’

Pardo recalled warnings by Israeli philosopher Yeshayahu Leibowitz in 1968, who criticized the occupation of Palestinian territories and the imposition of military rule over millions of Palestinians.

In his article The Territories, Leibowitz warned that control over Palestinians would ultimately lead to the “corruption” of Israeli society. “Rule over the occupied territories would have social repercussions,” Leibowitz warned at the time.

“The corruption characteristic of every colonial regime would also prevail in the state of Israel,” he added, calling for withdrawal from occupied territories. While Pardo once believed Leibowitz was mistaken, he now says “there was a lot of truth” in his warning.

Israeli settler violence and expansion, while long-standing, have intensified sharply since October 2023, including the systematic forced displacement of Palestinians from their communities and an increased use of live fire against unarmed residents.

The Wall and Settlement Resistance Commission said Israeli settlers have killed at least 16 Palestinians so far this year.

Tamir Pardo, former Mossad Director, commented after observing settler violence in the West Bank

“My mother is a Holocaust survivor, and what I saw here reminded me of the events of the previous century against the Jews” pic.twitter.com/4SuKEEz2Ls

— Ounka (@OunkaOnX) April 28, 2026

A United Nations report released in March recorded that more than 36,000 Palestinians were displaced in the West Bank between November 2024 and October 2025 amid a surge in military and settler attacks.

During the same period, 1,732 incidents of settler violence causing casualties or property damage were documented – a 25 percent increase on the previous year.

More than 1000 Palestinians have been killed by Israeli forces in the occupied West Bank since the Hamas-led attacks on Israel in October 2023.

Authored by Alex Wu via The Epoch Times (emphasis ours),

Amid China’s persistently sluggish economy, Zhejiang Province, a major production and industrial base in eastern China, is seeing a decline in trade orders as private enterprises struggle to stay afloat, according to industry professionals who spoke with The Epoch Times.

As the “hollowing out” of the private sector economy in mainland China intensifies, profit margins for industrial enterprises in Zhejiang have been under pressure since 2024, local industry insiders say.

The coastal province bordering the megacity of Shanghai is an economic powerhouse for China. It ranked fourth nationwide in gross domestic product last year, with its capital city of Hangzhou being the primary economic driver, along with other well-known commercial cities in the province such as Ningbo and Wenzhou, according to official data.

However, a large number of family-run export enterprises, which had previously served as pillars of the local county-level economies within the provinces, have had to cease operations in the face of shifting supply chains and shrinking orders over the past few years, according to Huang, an insider in Zhejiang’s textile industry who gave only her last name out of fear of reprisal from the Chinese regime.

“Profits have now dwindled to below 3 percent,” she told The Epoch Times. “Most garment factories are either operating at a loss or have gone under.”

The situation in Zhejiang has changed, Huang said.

“It is no longer the profitable place it once was,“ she said. ”For many enterprises, the issue isn’t merely low profit margins—they are actually reaching their breaking point.

“Private enterprises in the Jiangsu–Zhejiang region have long been regarded as a barometer of the economy.

“If even these firms in this region can no longer hold out and begin shutting down en masse, it signals that the problems facing the entire Chinese economy have become extremely severe.”

Inflated Economic Data

Although Zhejiang’s GDP growth rate appears relatively stable, “the reality is that fabricated data mask the grim operational realities faced by businesses on the ground,” Liu Mao, a businessman in Wenzhou who used a pseudonym out of fear of reprisal, told The Epoch Times.

“Foreign-invested enterprises in China face an operating environment constrained by hostility from authorities. Meanwhile, private domestic enterprises are subjected to tax audits and heavy fines. Under such layers of systematic exploitation, it is nearly impossible for any business—regardless of its nature—to survive.”

In recent years, the business environment in China has continued to deteriorate because of the Chinese regime’s inconsistent policies and tightened controls, as well as geopolitical tensions and increasing trade frictions between China and the West that have led to supply chain diversification. As a result, a significant number of foreign companies, and even some Chinese companies, have been moving their factories from China to Southeast Asian countries.

According to official data released by Hangzhou Customs, the total value of goods trade imports and exports in Zhejiang Province reached 1.38 trillion yuan (about $201.83 billion) in the first quarter of 2026, a year-on-year increase of 7.1 percent, marking the fourth consecutive quarter in which both imports and exports have registered positive growth.

However, Liu noted that the province’s export trade figures are heavily inflated.

“According to internal data I obtained from friends within the system, this year’s export volume actually declined compared to last year,“ he said. ”It certainly did not grow by 7.1 percent.

“My friends told me that the public export data reported by various localities is rife with fraud. Some regions engage in double-reporting or filing false tax returns to swindle government subsidies, while those in higher positions turn a blind eye. This country is beyond saving.”

Layoffs and Lowered Wages

As businesses continue to struggle, workers are facing layoffs along with increasing difficulties in finding other jobs, according to local industry professionals.

An Zhiqiang, who works in the electronics business in Hangzhou, told The Epoch Times that local private enterprises are all downsizing and laying off staff.

“Locals are unable to find work, making it even more difficult for people from other provinces,” he said.

“Since the spring, many of our local factories have had to halt production due to a lack of orders, and quite a few foreign-funded enterprises have pulled out as well.

“For instance, a Scandinavian company here that manufactures feed processing equipment has downsized its workforce from 80 employees to just 29, and further layoffs are expected.”

Amid the economic downturn characterized by reduced consumption and diminished purchasing power, the livestock industry’s demand for feed is also declining, resulting in sluggish sales for related equipment, according to An.

“Right now, industries across the board are downsizing,“ he said. ”The only places still hiring are essentially large foreign-funded enterprises—for instance, Japanese companies in Hangzhou. But they only recruit new staff to replace those who retire; consequently, only young applicants who aren’t afraid of hard work stand a chance.”

Currently, temporary workers are being paid 13 yuan ($1.91) per hour, whereas the government-mandated rate is 25 yuan ($3.66) per hour, he said.

“Although in the suburban districts of Tonglu and Chun’an, hourly rates of 22 yuan [$3.22] can still be found,” he said.

According to the latest official standards released in February, the minimum hourly wage in Hangzhou is 25 yuan ($3.66).

The current issue is not merely a shortage of jobs in Hangzhou, Liu said, “but rather that [all of] mainland China is undergoing a phase of accelerating economic downturn.”

Wang Yibo contributed to this report.

By Philip Marey, senior US strategist at Rabobank

Summary

• As widely expected, the FOMC remained on hold. Governor Miran dissented again because he wanted a rate cut.
• However, there were also three dissenters (Hammack, Kashkari and Logan) who wanted to remove the bias toward cutting from the statement.
• On balance, Powell said that the center of the Committee was moving toward a more neutral place in thinking about cuts versus hikes.
• Powell announced that this was his last press conference as Chair, but he would stay on as a Governor until he thinks it’s appropriate to leave, because of the legal attacks on the Fed.
• Our baseline forecast is still two rate cuts this year, one in September and one in December. Once Warsh becomes the new Chair, he will try to convince the Committee to make more than the single cut in their most recent projections. However, given the developments in the Middle East, we think that in the coming months we are more likely to drop a rate cut from our forecast than add one.

Introduction

As widely expected, the FOMC decided to keep the target range for the federal funds rate unchanged at 3.50-3.75% this month. Governor Miran repeated his dissent, preferring a ¼ percentage point rate cut at this meeting.

However, there were also three dissents (by Hammack, Kashkari and Logan) because they “did not support inclusion of an easing bias in the statement at this time.” This easing bias is currently expressed in the statement “In considering the extent and timing of additional adjustments to the target range for the federal funds rate…”. Since the last three adjustments were rate cuts, this sentence would suggest that the FOMC is still biased toward cutting.

In its assessment of the economy, the statement replaced “The implications of the developments in the Middle East for the U.S. economy are uncertain” by “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook”, not a major change content-wise. However, inflation is now explicitly linked to global energy prices and described as elevated rather than somewhat elevated. “Inflation is elevated, in part reflecting the recent increase in global energy prices” instead of “Inflation remains somewhat elevated” This is a clear nod to the rise in CPI inflation to 3.3% in March from 2.4% in February.

Press conference

In his prepared speech, Powell reiterated the economic assessment in the FOMC statement, including that economic activity has been expanding at a solid pace. However, after announcing that this was his last press conference as Chair, he said he would stay on as a Governor. He was encouraged by the recent developments, meaning the suspension of the criminal inquiry against him – which in a Senate Banking Committee vote earlier today was sufficient for Senator Tillis to support advancing Warsh’s nomination to the Senate floor – but he was clearly not entirely persuaded yet. Nevertheless, he promised to maintain a low profile as a Governor.

The two main topics during the Q&A were Powell’s decision to stay on as Governor and the dissents on the easing bias.

When asked why he wanted to stay on as a Governor, Powell said it was because of the legal attacks on the Fed. He added this had nothing to do with the verbal attacks. He said he will leave when he thinks it’s appropriate to do so. Powell said he was staying because of the actions that have been taken (by the administration), and he actually had planned to retire. But first he wants to see things calming down. Comparing the Fed’s independence now to when he started, he said “I think it’s at risk because of legal assaults.” When asked what he exactly needed from the DOJ, he said “for the investigation to be well and truly over with finality and transparency.” Powell did not answer the question what message he was sending to the President by staying on and said he’ll stand by what he said earlier. In response to the question whether he was going to act as a Shadow Chair, he said that was something he would never do. He intends to be a constructive (FOMC) participant out of respect for the office of the Chair.

Regarding the easing bias, Powell said that the majority in the Committee – including himself – thought there was no rush to change this language. However, Powell said that the center (of the Committee) was moving toward a more neutral place in thinking about cuts versus hikes. He also said there were non-voters who favored changing the easing bias. He stressed that monetary policy was in a good place and if necessary the FOMC could hike or cut, but nobody was calling for a hike right now. In response to a question whether he was handing over a divided Fed to Warsh, Powell said that this was an unusually difficult situation with 4 supply shocks in 5-6 years, referring to the pandemic, Ukraine, tariffs and Iran. So it’s only natural that you have a range of views.

Conclusion

Our baseline forecast is still two rate cuts this year, one in September and one in December. Once Warsh becomes the new Chair, he will try to convince the Committee to make more than the single cut in their most recent projections. However, given the developments in the Middle East, we think that in the coming months we are more likely to drop a rate cut from our forecast than add one.

Finally, the attempts of the Trump administration to influence the Fed through legal attacks seems to have backfired, because Powell would have left on his own volition. Instead, he now intends to stay on until the legal attacks have ceased. This means that President Trump will have to delay his plan to nominate a Governor to replace Powell, which would give the Trump-loyalists a majority in the Board of Governors.