China has asserted sovereignty over an uninhabited reef in the South China Sea by planting a flag, according to state media, setting the stage for an escalation of tensions with the Philippines over the disputed area.

Recently, the China Coast Guard announced that it had dealt with a situation involving six people from the Philippines who allegedly landed on a small sandbank in the South China Sea, which both China and the Philippines claim ownership over.

Also in today’s newsletter, tariff-fuelled demand slump hits US ports and air freight, and Vanguard rules out China