Hi all,

In today's bulletin: President Donald Trump's decision to end the special status for Hong Kong prompts China to warn of retaliatory action, Japan to increase defence spending, Wuhan faces floods after coronavirus, Britain braces for backlash from China over its Huawei decision, The Straits Times turns 175, and more.

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US & CHINA SPAR OVER HONG KONG

United States President Donald Trump formally ordered an end to Hong Kong's special status under US law, prompting Beijing to warn of retaliatory action.

After signing the executive order, Trump told a press briefing it will mean "No special privileges, no special economic treatment and no export of sensitive technologies."

The move follows China's rushed effort to enact the national security law for Hong Kong which critics say would curb various freedoms promised to the city when it returned to Chinese rule in 1997, while supporters say it will restore stability.

Warning of retaliatory action, China's foreign ministry reiterated that the city's affairs "are purely China's internal affairs and no foreign country has the right to interfere."

Also read:

Amid Hong Kong convulsion, Taiwan pitches investors its democracy

Hong Kong academics fear for freedom under new security law

New York Times to relocate part of Hong Kong office to Seoul amid concerns over security law

JAPAN TO INCREASE DEFENCE SPENDING, HITS OUT AT CHINA

Japan is set to increase its defence spending, in a manner "fundamentally different from the past," Tokyo announced in its annual defence review.

The nation will invest in the construction of two destroyers, a submarine, a mine-sweeping vessel and the purchase of three patrol aircraft and seven patrol helicopters. These and other projects will push its defence budget up by 1.2 per cent to 5.07 trillion yen (S$65.8 billion).

Tokyo cited China's territorial claims in the region, North Korea and emergent risks in cyber and space warfare as threats.

Japan Correspondent Walter Sim says the harshest remarks in the 597-page report was reserved for China, which it said had "relentlessly continued unilateral attempts to change the status quo by coercion" over a disputed group of islets in the East China Sea that Japan calls the Senkakus. China calls them Diaoyus.

Read also:

Japan may adopt a tougher line on ties with China, say analysts

WUHAN RESIDENTS NOW FACE FLOODS

Days after recovering from battling coronavirus infections, the city of Wuhan is now grappling with floods, with torrential rains showing no respite.

Reports said that the peak level of the Yangtze River, which runs through Wuhan in Hubei province, had reached the river's fourth-highest level ever leaving city officials anxious.

Meanwhile, China's national observatory renewed a blue alert for rainstorms today, as the downpour continued to wreak havoc in vast stretches of the country.

Read also:

Flash floods kill at least 16, displace hundreds in Indonesia

UK BRACES FOR CHINA BACKLASH OVER HUAWEI

Britain's decision to ban Huawei from the country's 5G network stoked concern within the country, but won plaudits from US President Donald Trump, while China slammed the move.

Prime Minister Boris Johnson's announcement will mean that British mobile providers will be banned from buying the new Huawei 5G equipment after the end of this year, and they must also remove all the Chinese firm's 5G kit from their networks by 2027, writes our Global Affairs Correspondent Jonathan Eyal, who is based in London.

Britain is bracing itself for a backlash from China, he notes.

President Trump took credit for Britain's move and said he too had decided not to use Huawei as it is an "unsafe security risk".

China slammed London's decision and vowed to take measures to protect the interests of Chinese companies

THE STRAITS TIMES TURNS 175 TODAY

Very few newspapers around the world have been around for close to two centuries. We're fortunate to be one of them and today we mark our 175th anniversary. For our readers, we've pulled out highlights from our journey this far as we covered Singapore, the region and beyond, through our network of correspondents and writers around the world. Click below for some of our special reports & features:

ST turns 175: Staying true to its mission from Day 1 from print to screen, ink to multimedia

ST turns 175: We straddle the world

ST turns 175: 10 stories that gripped a nation

IN OTHER NEWS

RESORTS WORLD SENTOSA TO RETRENCH STAFF: Singapore's integrated resort operator Resorts World Sentosa (RWS) will be laying off a significant number of staff as it struggles to cope with the impact of Covid-19 on tourism. The number of those affected has not been mentioned but RWS said this would be a "one-off workforce rationalisation" and that affected workers will get "fair compensation".

FOREIGN STUDENTS GET US VISA RELIEF: Students eyeing education in the United States breathed a sigh of relief as the Trump administration reversed a rule that would have denied them visas to enter or stay in the country if classes moved online. US Correspondent Charissa Yong writes that the immigration policy reversal came amid eight federal lawsuits challenging the snap decision, first declared on July 6.

DISCORD IN INDIA'S CONGRESS PARTY: India's Congress Party is in turmoil after an internal mutiny threatened its hold on power in the central state of Rajasthan, writes India Bureau Chief Nirmala Ganapathy. Mr Sachin Pilot, 42, a well-known face of the party and a key second-rung leader, was sacked as deputy chief minister and Rajasthan Congress chief after revolting against senior leader Ashok Gehlot, the Rajasthan chief minister, potentially threatening the state government. At least 16 members of the Legislative Assembly (MLA) have also left with him, weakening the state government.

That's it for today. Stay safe and we'll be back with you tomorrow.

Shefali