China Expands Its Economic Footprint Across Central Asia

By Eurasianet - Aug 12, 2026

• China is expanding scientific and educational cooperation with Uzbekistan, Kazakhstan and Tajikistan alongside its traditional infrastructure and investment activities.
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• New rail, road and aviation projects are strengthening physical links between China and Central Asian markets.
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• Kazakhstan and Kyrgyzstan are becoming more financially intertwined with China through yuan financing, bond issuance, investment and other bilateral mechanisms.
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Soft power, in the form of scientific cooperation, is helping to drive an expansion of China’s economic influence in Central Asia. Uzbekistan and China, for example, recently launched the joint hyperspectral satellite, Samarkand-2028, which will support applications in agriculture, environmental monitoring, water resource management and natural disaster response. The satellite also features an Uzbek-developed AI module for onboard data processing, reducing the volume of data transmitted to ground stations while increasing the speed and efficiency of image analysis. In addition, Uzbek Agricultural Ministry officials are collaborating with experts from the Chinese Academy of Sciences’ Institute of Microbiology and Zhejiang University on a project to combat desertification and revive soil fertility in the Aral Sea region. The project also is developing drought-resistant plant varieties, Uzbekistan’s state news agency, UzA, reports. Elsewhere in Central Asia, Kazakhstan’s minister of science and higher education, Sayasat Nurbek, met with representatives of Chinese entities conducting scientific research at Kozybayev University. The meetings focused on expanding cooperation, implementing the findings of their research into improving agricultural yields and developing programs to train Kazakh specialists. Meanwhile, Tajikistan is looking to strengthen education and scientific cooperation with China: officials from the Strategic Studies Center with the President of Tajikistan and a visiting delegation of the China International Communications Group, a state institution under the Communist Party’s Central Committee, discussed opportunities for joint analytical research, publications and expert exchanges, the official Tajik news agency Khovar reported. 

Transit and connectivity

The China-Kyrgyzstan-Uzbekistan railway could be completed at least a year ahead of schedule, Uzbekistan’s transport minister told public television channel Uzbekistan 24, without providing specifics. He added that the three countries are also working to simplify border crossings and digitize transport procedures, with the eventual goal of introducing permit-free transit. Meanwhile, former Kumtor Gold Company CEO Tengiz Bolturuk predicted recently that the railway project’s cost could balloon up to $9 billion. China has provided a $5-billion loan to help finance the project. Once completed, Beijing will retain a 51 percent controlling stake in the railway.

Kazakhstan and China discussed expanding aviation cooperation by establishing new routes linking Urumqi, XinjiangProvince’s largest city, with Karaganda, as well as Yining, Xinjiang’s third largest urban center, with Astana and Almaty. The two sides are also exploring the creation of a joint regional airline using Chinese-made COMAC aircraft. 

Kyrgyzstan and China are preparing an intergovernmental agreement to build a cross-border road bridge at the Bedel checkpoint, Economist.kg reports. Kyrgyz carrier AeroNomad Airlines also launched its first direct flight to China, connecting Bishkek and Urumqi, according to Vesti.kg. 

Kazakhstan

The Kazakh government is preparing to raise the equivalent of about $500 million by issuing a second round of sovereign panda bonds, yuan-denominated securities sold within mainland China’s domestic bond market. The new bond issue could float as early as September, reports Bloomberg. If successful, it will be Kazakhstan’s second float of sovereign panda bonds, and the third float overall. In May, the government launched sovereign panda bonds with placement volume at 3.4 billion yuan (over $500 million), and in April, Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, issued Kazakhstan’s – and Central Asia’s – first ever panda bonds totaling 3 billion yuan (about $440 million). 

Kazakhstan and China signed an MoU to set up an integrated ecosystem for producing “sustainable” aviation fuel in Alatau, covering the entire value chain from cultivating agricultural feedstocks to processing and fuel production, writes Inform.kz. The MoU also calls for studying potential smart energy solutions and nickel-hydrogen energy storage systems to improve energy reliability and support the integration of renewable energy sources. 

Kazakhstan and China have taken another step toward financial integration by signing a three-year bilateral currency swap agreement, reports Kapital.kz. It is designed to facilitate trade and investment by improving access to tenge and yuan liquidity, thus encouraging greater use of national currencies in cross-border transactions. 

Kyrgyzstan

China became Kyrgyzstan’s largest foreign investor in 2025, overtaking Russia, with $305.7 million in FDI. Total foreign investment rose 31.4 percent year-on-year to $335.4 million, according to Eurasian Economic Commission data. The turnaround followed two consecutive years of net Chinese capital outflows.

China will provide Kyrgyzstan with 370 pieces of specialized equipment worth 148.9 million yuan as a grant to modernize the country’s irrigation network, reports Open.kg. The equipment, intended for mechanized canal cleaning, is expected to improve water management and agricultural irrigation efficiency nationwide.

Uzbekistan

China’s Ningxia Hui Autonomous Region supplied Uzbekistan with nearly 500 milk and breeding stock cows in early August. Since late last year, the Chinese region has sent over 1,700 head of cattle, reports Xinhua.

By Eurasianet

 

Chonnam National University study reveals how environmental responsibility improves financial performance

Environmental responsibility boosts financial performance indirectly by increasing sales, especially for major conglomerates and after COVID-19

Chonnam National University, The Research Information Management Team, Office of Research Promotion

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Researchers analyzed ESG ratings and financial data from 579 publicly listed Korean companies to examine how environmental responsibility influences financial performance. The study found that environmentally responsible firms improve financial performance indirectly by increasing sales, with the effect strongest among large Chaebol firms and in the post-COVID-19 period. The findings suggest that growing green consumerism may help translate corporate sustainability efforts into business success.

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Credit: Prof. Sang-Ho Lee

Consumers are increasingly choosing products from companies that demonstrate genuine environmental responsibility. While many studies have linked environmental, social, and governance (ESG) performance with stronger financial results, exactly how environmental responsibility translates into higher profits has remained unclear. A new study suggests that sustainability improves corporate financial performance indirectly by increasing sales. 

Now, a study led by Professor Sang-Ho Lee from the Department of Economics at Chonnam National University, South Korea, in collaboration with Professor Arturo Garcia from Universidad Autónoma de Nuevo León, Mexico, has identified sales as the key mechanism linking environmental responsibility with financial performance. Their study was published online on May 22, 2026 in the journal Corporate Social Responsibility and Environmental Management. 

Growing concern about climate change has encouraged companies across industries to reduce emissions, adopt greener technologies, and strengthen their environmental practices. At the same time, consumers have become more conscious of the environmental impact of their purchasing decisions, increasing pressure on businesses to demonstrate credible sustainability efforts. 

Growing concern about climate change has encouraged companies to reduce emissions, adopt greener technologies, and strengthen their environmental practices. At the same time, consumers have become increasingly conscious of the environmental impact of their purchasing decisions, making environmental responsibility an important factor influencing buying behavior. “As green consumerism is increasing, the escalating global concern over climate change has compelled firms across numerous industries to integrate eco-friendly practices, such as greenhouse gas reduction and the adoption of green technologies, into their core operations,” explained Prof. Lee. 

To understand how environmental responsibility affects financial performance, the researchers analyzed ESG ratings from the Korea Corporate Governance Service and financial data from the KIS Value database for 579 publicly listed Korean companies, representing 2,316 firm-year observations between 2019 and 2022. Using mediation and moderated mediation analyses, they investigated whether sales explain the relationship between environmental responsibility and financial performance and whether this relationship varies by firm type and before and after the COVID-19 pandemic. 

The analysis showed that environmental responsibility did not directly improve financial performance. Instead, companies with stronger environmental performance generated higher sales, leading to improved returns on assets and equity. This indirect relationship was significant for large Chaebol firms but not for non-Chaebol firms, suggesting that larger companies are better able to convert environmental initiatives into stronger consumer demand through greater visibility and reputation. The sales-mediated effect also became significantly stronger after the COVID-19 pandemic, reflecting increased consumer and stakeholder sensitivity toward sustainability.  

The findings highlight sales as the pathway through which environmental responsibility creates economic value. “This approach can be potentially applied to other countries that have different business styles and different degree of green consumerism,” added Prof. Lee. 

The researchers believe their findings could help businesses, investors, and policymakers better understand the economic benefits of sustainability and encourage strategies that strengthen both environmental responsibility and consumer trust. “Our study emphasizes not only the importance of green consumerism to improve environmental quality for a longer time horizon but also the financial performance-based sustainability of business strategies, as a win-win project for the earth and the people,” concluded Prof. Lee. 

Reference 
Title of original paper: Environmental Responsibility and Financial Performance: The Mediating Role of Sales in Korean Firms  
Journal: Corporate Social Responsibility and Environmental Management  
DOI: https://doi.org/10.1002/csr.70672 

About the institute 
Chonnam National University (CNU), established in 1952, is one of South Korea's leading national universities located in Gwangju. Building on its founding commitment to cultivating leaders of integrity and professional excellence, CNU contributes to national development and global progress through the pursuit of knowledge, ethical responsibility, and inclusive excellence. Guided by the core motto “Truth, Creativity, and Service,” the university advances research, education, and public engagement that strengthen resilient societies, foster sustainable development, and promote the well-being of future generations. As a trusted partner in the global community, CNU remains dedicated to addressing complex challenges in an increasingly interconnected world. 
Website: https://global.jnu.ac.kr/jnumain_en.aspx 

About the author 
Sang-Ho Lee is a Professor in the Department of Economics at Chonnam National University, Republic of Korea. He received his Ph.D. in Industrial Management from the Korea Advanced Institute of Science and Technology (KAIST). His research focuses on green consumerism, corporate environmental responsibility, ESG strategies, industrial organization, and competition policy. Working with former students and international collaborators, including Professor Arturo Garcia, his laboratory develops economic models to understand sustainable business behavior, green research and development, and antitrust issues related to common ownership. His work aims to promote profitable, competitive, and environmentally sustainable markets while informing evidence-based business and public policy. 

---

Journal

Corporate Social Responsibility and Environmental Management

DOI

10.1002/csr.70672 

Method of Research

Data/statistical analysis

Subject of Research

Not applicable

Article Title

Environmental Responsibility and Financial Performance: The Mediating Role of Sales in Korean Firms

 

Robinhood users target simplicity in choosing stocks

Washington State University

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PULLMAN, Wash. — Millions of investors using the Robinhood app tend to favor simpler, easy-to-understand stocks, according to new research from Washington State University — and those stocks outperformed more complex firms during the study period.

Those are among the findings of a new paper that examined investment patterns on Robinhood, the popular commission-free, game-like app and web platform. Some 28 million people use Robinhood, with an average user age of 35, according to the company. Understanding how they invest is important as digital natives reshape the market.

“I ask my students, ‘How many of you use Robinhood?’ and almost all of them raise their hands,” said Mario Reyes, professor and chair of the Department of Finance & Management Science in WSU’s Carson College of Business. “These preferences have market effects. If Robinhood users prefer simple stocks, demand for those stocks will increase. It also has implications for investor relations. Companies should design communications to reach not just sophisticated, big institutions, but inexperienced young investors, as well.”

The research, published in the journal Finance Research Letters, was co-authored by Ruixue (Rachel) Gao, who completed her PhD at WSU and has taken a position at Central Connecticut State University, and George Jiang, professor and Gary P. Brinson Investment Management Chair in Finance & Management Science.

Founded in 2013, Robinhood Markets offers a mobile app and web-based platform, allowing users to trade stocks, options, and cryptocurrencies, as well as access to banking and credit card services.

“The platform is very, very popular, and generally, these investors are very young,” Gao said. “We want to know what young people care about because they are the future of the stock market.”

Past research has demonstrated that Robinhood investors are drawn toward stocks with high “idiosyncratic volatility,” which means their price variations don’t align with overall market activity. Such firms or portfolios may have unique circumstances — such as a famous owner — and are usually less diversified and complex than other stocks.

The researchers analyzed Robinhood holdings from May 2018 to August 2020 and conducted regression analyses with two measures of complexity: accounting complexity, based on the number of accounting items in a company’s annual SEC filings; and organizational complexity, or the number of businesses or operating segments within a firm. Examples of firms with single business segments include Target Corp. and Ross Stores.

As anticipated, more Robinhood users bought stock in firms that were less complex and easier to analyze, an effect that persisted even when the results were controlled for firm size. The approach seems to have paid off, with the simple stocks favored by Robinhood investors outperforming more complex stocks.

Across all comparisons, the preference for simplicity persisted.

"What stands out is that Robinhood investors consistently gravitate toward companies that are easier to understand,” Reyes said. "Whether we measured complexity through financial reporting or business structure, the pattern was the same."

---

Journal

Finance Research Letters

DOI

10.1016/j.frl.2026.110446 

Method of Research

Data/statistical analysis

Subject of Research

People

Article Title

Robinhood: Simple app simple stocks

Article Publication Date

2-Jul-2026

DAS KAPITAL BLOG

 

 

How women-led businesses manage to survive and thrive in Afghanistan

12.08.2026, DPA

Photo: Fardina Akbari/dpa

Women's rights have been suppressed in Afghanistan ever since the Taliban seized power five years ago. But a few women-led enterprises are flourishing, offering some hope in an otherwise bleak economic climate.

By Mathis Richtmann, dpa

Ruqia Rezai slowly peels reddish bars of soap from a silicone mould and stacks them on top of one another.

Her little workshop in western Afghanistan is in full swing, filling the air with the scent of fresh herbs, saffron and turmeric.

Rezai, 21, set up her small business four years ago, one year after the Taliban managed to seize power again, plunging the impoverished country into a spiralling humanitarian crisis.

Women's lives and freedom of movement are extremly restricted under the new Islamist regime, but many refuse to give up hope - and some are managing to make their own living, against all odds.

Rezai was forced to finish her schooling as quickly as possible when the Taliban took over on August 15, 2021. Their clampdown on women's rights meant she had no chance of attending university.

Then her father lost his business, leaving the family fighting for survival.

Today, Rezai's workshop in Herat employs eight people, sometimes more when orders are up.

The work is helping Rezai and also her sisters, who are involved too, to overcome difficult times, she says.

"Overall, this work has improved the mental health of our whole family."

Education severely restricted for girls

The humanitarian situation in Afghanistan has worsened considerably since the Taliban took over five years ago.

The economy collapsed and the country was excluded from the international financial system, while foreign aid payments have been cut.

That has led to hunger and despair. At least 3.7 million young children in Afghanistan are considered to be acutely malnourished. And almost 40% of the population may be acutely affected by food insecurity in the coming winter months.

Meanwhile 2.4 million girls are currently excluded from secondary schooling as a result of a Taliban ban, UNESCO said recently.

Under the Taliban, access to education - and public life in general - has been severely restricted for women and girls. They are not allowed to attend secondary school or university, and have been largely excluded from the workforce.

The Taliban takeover triggered a major exodus, but some 3.9 million people have since returned to Afghanistan from neighbouring Iran and Pakistan. Many were forced to, according to the UN refugee agency.

In a development update published in May, the World Bank noted that such return migration is putting further pressure on the Afghan economy.

"While returnees support demand and economic activity, their numbers are growing faster than the economy's capacity to absorb them. This
places pressure on jobs, public services, and prices, reinforcing poverty and fragility," the World Bank says.

While the economy grew last year, "rapid population growth has
outpaced economic expansion, leading to falling incomes per person."

Ongoing conflict with Pakistan is also hampering economic development. Following mutual attacks, Islamabad closed border crossings to the movement of goods, leaving Afghan farmers unable to export melons and nuts, while imports via Pakistan are also no longer possible.

Life under the Taliban

The situation is worst of all for Afghan women, who are no longer allowed to work in offices, need a male relative to accompany them in public and are forced to submit to strict Islamic dress codes.

Those rules are not enforced equally across all provinces, as Ghuncha Gul Karimi has seen for herself.

The 39-year-old beekeeper has been dressing up as a man every day since the Taliban takeover to ride 15 kilometres on her motorbike to attend to her beehives on the outskirts of Herat.

Once, the Taliban detained her due to her disguise. During the interrogation, she was asked whether she wasn't afraid of the new government.

"Instead of selling my body, I've decided to wear men's clothes, ride my motorbike, go to work, earn an honest living and put food on the table for my family," Karimi replied. She was released.

Karimi started beekeeping 18 years ago. Today, she runs 120 hives and trains both men and women in the craft.

This doesn't only allow her to cover all her family's expenses, but she was even able to pay for an eye operation her son needed.

"Today, I'm proud to say that by selling honey, I can help my children achieve their dreams," Karimi says.

Latif Nazari, deputy economy minister, told dpa that his ministry was supportive of female-led businesses as long as they stick to Islamic norms.

Women are employed in small and medium-sized enterprises and, "where necessary," in places such as airports, banks or the security sector, he says.

Afghanistan aims to achieve sustainable economic growth, and women are contributing to this while respecting national values, Nazari adds.

In reality, however, experts have noted that women are rarely granted work permits for employment.

Female-led businesses outperforming male counterparts

The private sector is currently driving the nation's fragile economic growth, according to the World Bank analysis.

"Notably, women-managed firms outperformed their male-managed
counterparts on several key indicators, despite operating under considerably tighter social and economic constraints," the World Bank says.

The bank found that female-led businesses saw significantly higher real annual sales growth, while they also recorded better employment expansion.

"Future private sector growth will depend critically on policies that
remove the financing, mobility, and regulatory barriers that prevent women-managed firms from translating demonstrated dynamism into sustained, scalable expansion."

But for some, it is not just the many restrictions that weigh on business, but a lack of capital.

Rezai would love to expand her soap workshop, she says. Business is going well thanks to marketing on social media.

Last year, she received a large order from Tajikistan, marking the first request to export abroad. But Rezai was forced to turn it down, unable to expand production capacity beyond the 12-square kitchen fast enough.

Restrictions have been tightened even further by the Taliban since this year, Rezai says. But she refuses to back down.

"People shouldn’t wait for someone to come and rescue them. They won’t come. People can only save themselves."

• World Bank Afghanistan Development Update

(c) 2026 dpa Deutsche Presse Agentur GmbH

 

Butter or margarine: Which causes less harm to the environment?

12.08.2026, DPA

Photo: Fernando Gutierrez-Juarez/dpa

The average person consumes a few kilograms of butter every year, with consumption particularly high across the northern hemisphere.

To produce a single 250 g pack of butter, around five litres of milk are needed. That high milk requirement means butter does not score well on climate impact, research has shown.

"Butter's CO2e footprint is larger than that of pork or chicken — at least when measured per kilogram," says Nils Rettenmaier of the Heidelberg Institute for Energy and Environmental Research (ifeu) in Germany.

For those puzzled by "CO2e": it is not a typo. CO2e stands for CO2 equivalents, a standardized unit of measurement used to make the climate impact of different greenhouse gases comparable. Besides carbon dioxide, this includes gases such as methane and nitrous oxide.

Even if you live in a country that consumes far more meat than butter, the impact on food-related greenhouse gas emissions is still visible, Rettenmaier explains.

Is margarine a more climate-friendly alternative?

Plant-based margarine fares better, the researcher says. An earlier ifeu study supports this, finding the following CO2e emissions per kilogram of product:

• Butter: 9.0 kg CO2e per kg
• Light butter (40% fat): 5.1 kg CO2e per kg
• Half-fat margarine: 1.7 kg CO2e per kg
• Full-fat margarine: 2.8 kg CO2e per kg

For blended spreads made from butter and vegetable fats, values varied by fat content, ranging from 6.6 kg to 7.2 kg CO2e per kg. "So the differences compared with butter are not that great here," Rettenmaier says.

The full environmental picture

Why does butter have such an impact on the environmental balance sheet? Environmental experts have pointed to several factors:

• Feed for cows requires large areas of agricultural land.
• Digestion by ruminants produces methane in bovine flatulence, resulting in high greenhouse gas emissions.
• Slurry contributes to nitrate contamination of groundwater.
• Antibiotic use contributes to the development of multi-resistant bacteria.

The ifeu study took all of these factors into account, examining the impact of the entire production process for nearly 200 foodstuffs — from agricultural production to the supermarket checkout. "It was not just about the climate impact, but also the land and water footprint as well as the phosphate footprint," Rettenmaier explained.

The result: plant-based margarine consistently shows a more favourable footprint than butter, regardless of whether the plant-based alternative is based on rapeseed or sunflower oil.

Why you should check the margarine's ingredients

While the permitted ingredients in butter tend to be more strictly regulated, the situation is more complicated for margarine.

"Margarine is not automatically a purely plant-based food. It can also contain skimmed milk, yoghurt or buttermilk," says nutritionist Claudia Müller, adding that only products declared as vegan contain no animal ingredients.

It is therefore worth looking more closely in the supermarket. "Anyone who reaches for plant-based margarine can make a contribution to climate protection," Rettenmaier says. "Light products overall perform even better than full-fat products."

However, margarine can be made from various fats and oils, including palm oil, palm fat and coconut fat. The problem, Müller says, is that "the cultivation of plants from which coconut fat and palm oil and fat are obtained takes place largely in monocultures, with significant consequences for biodiversity." This must also be viewed negatively from an ecological perspective, she says.

In the worst cases, rainforests are cleared for palm oil production. Sustainability experts therefore advise that when buying palm oil-containing margarine, shoppers look for the RSPO sustainability label with the addition SG or IP, as this designation may only appear on packaging for products containing certified palm oil.

Tip: Those wishing to reduce their overall environmental impact further could also opt for organic products. "That makes a big difference — through improved animal welfare and the avoidance of pesticides, for example," Rettenmaier says.

(c) 2026 dpa Deutsche Presse Agentur GmbH

Taxi politics: German Green leader's unusual election campaign

12.08.2026, DPA

Photo: Manuel Genolet/dpa

Germany's Green Party co-leader, Felix Banaszak, is taking an unconventional approach to campaigning ahead of three state elections next month, ferrying potential voters around Berlin in his very own "Banaszak Taxi."

Speaking ahead of his first drive on Wednesday, the Greens co-chief said the idea was a literal take on a political metaphor. "Politics should pick people up where they are and take them to their destination. I thought I'd take that literally," he said. 

"I drive a car the way I do politics: free from fear and with great joy," Banaszak said. 

Anyone who wants to be driven by the Greens co-leader and have a conversation with him can register their interest on a website. The 36-year-old said he'd already had many submissions. 

"I think I'll also help people move a mattress and go shopping," he said. "But the opportunity is above all meant to be a chance to talk in the car about what is on people's minds."

Those tempted by a taxi ride don't need to worry about Banaszak's driving; he said he has so far avoided accidents and - largely - scratches. 

Elections are due in September in the states of Saxony-Anhalt, Mecklenburg-Vorpommern and Berlin. In the two states outside the capital, the Greens are polling close to the 5% threshold required to enter the state parliament. In Berlin, they are polling between 15% and 19%.

In Saxony-Anhalt and Mecklenburg-Vorpommern, the stakes go beyond votes for the Greens, Banaszak said. 

He said the question was also whether "the only force" that took environmental protection, nature conservation and climate change measures seriously would disappear from the state parliaments. It is also about whether "an anti-democratic, anti-constitutional, far-right, in parts fascist party" - a reference to the anti-immigrant Alternative for Germany (AfD) - would get the chance to govern a federal state, he said.

The AfD is set to see record gains in those elections. In Saxony-Anhalt, the party could even gain an unprecedented absolute majority, allowing it to enter a state government for the first time.

'Big Tobacco' moment?: Meta faces $1.4 trillion lawsuit over harm to children

Jury selection begins Wednesday in a lawsuit filed by the US states of California, Colorado, Kentucky and New Jersey alleging that Meta uses technology to make Facebook and Instagram addictive for children. The states are demanding changes to Meta's apps in addition to financial penalties as high as $1.4 trillion in what some experts are calling social media's "big tobacco moment". Meta denies the allegations.


Issued on: 12/08/2026 
By:  FRANCE 24
Video by: Carys GARLAND

Cover image: With billions of users around the world, Meta will defend itself against allegations of harming children in a new trial in the United States this week. © Brendan Smialowski, AFP file photo
01:57

With billions of users around the world, Meta will defend itself against allegations of harming children in a new trial in the United States this week which experts are describing as social media's big tobacco moment.

After a coalition of states sued Meta in 2023 for allegedly designing addictive features for kids in its apps, four states were selected to represent their claims: California, Colorado, Kentucky and New Jersey.

Top prosecutors of those states now aim to prove in federal court that Meta deliberately made Facebook and Instagram addictive for children.

Meta "strongly disagrees with these allegations" and is "confident the evidence will show our longstanding commitment to supporting young people", a spokesperson told AFP, adding that the company has "listened to parents, worked with experts and law enforcement".

Although it's not the first lawsuit that seeks to hold a social media company accountable for its impact on mental health and safety, it could become one of the most consequential.

"It really feels like tobacco in the 1990s," Vincent Joralemon, a director at Berkeley's Life Sciences Law and Policy Center, told AFP.

While these cases about social media harms revolve around the intersection of technology and addiction, the legal argument in this case against Meta centers on its business practices, just like when the federal government sued tobacco companies around three decades ago, Joralemon said.

By the early 1990s, decades of research showed that tobacco use caused health problems such as cancer, and eventually additional investigations revealed how the industry deliberately downplayed, and even concealed, the harmful impacts of its products.

Cover image: © France 24
01:12

'Protecting teens'

Dozens of US states sued four major tobacco companies, and by 1998, won a landmark settlement agreement which included financial penalties and changes to how products were marketed, particularly to children whom the industry targeted with advertisements featuring cartoon characters, the most famous of which was known as "Joe Camel".

Jury selection begins today in Oakland, a short drive from San Francisco and opening statements are expected to begin August 18.

Meta was convicted on similar grounds in separate trials held in Los Angeles and New Mexico, with combined damages that approach $1 billion.

In Oakland, the states are demanding a long list of changes to Meta's apps, in addition to financial penalties as high as $1.4 trillion – close to Meta's entire market value, which hovers around $1.5 trillion.

Despite the eye-popping number, money isn't Meta's biggest problem, if it were to lose the case.

"The huge issue here is reputational harm" and being forced to make major changes, Joralemon said.

"Putting a CEO on the witness stand can be quite damning," as well, he said.

Meta founder and chief Mark Zuckerberg is among the star witnesses expected to testify.

The case could be "the beginning of a broader reckoning" for Meta, Nora Freeman Engstrom told AFP via email. She is a law professor and associate dean at Stanford.

It will be important to see the "gap" between what Meta knew privately and what it disclosed publicly, Engstrom said.

Meta is "confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts," Meta told AFP last week.

With so many plaintiffs suing Meta and other social media companies, these lawsuits could potentially "go on for decades", Joralemon said.

In May, Snap, TikTok, YouTube and Meta settled with a school district in Kentucky for $27 million to avoid another trial that was expected to set a precedent for around 1,200 similar lawsuits.

On Monday, a federal appeals court ruled that more than 3,000 additional lawsuits filed against Meta, YouTube-parent Google, Snap and TikTok can proceed.

(FRANCE 24 with AFP)

Netanyahu gave a ‘victory to Hamas’ by rejecting US-backed Gaza peace plan

ANALYSIS


Israeli Prime Minister Benjamin Netanyahu’s rejection of a US-backed peace plan for Gaza last week offered a diplomatic victory to Hamas, according to some analysts. The Palestinian Islamist movement had agreed to gradually give up weapons in exchange for an Israeli withdrawal from Gaza, but agreeing on the definition of "disarmament" may prove a sticking point.


Issued on: 12/08/2026 - 
FRANCE24
By: Grégoire SAUVAGE

US President Donald Trump (R) and Israeli Prime Minister Benjamin Netanyahu leave at the end of a joint news conference in the State Dining Room at the White House on September 29, 2025 in Washington, DC. © Win McNamee, AFP

Hamas would be required to gradually give up its weapons in exchange for an Israeli withdrawal from the Palestinian territory of Gaza under the peace plan announced by US President Donald Trump in July.

But the deal remains stalled for now.

While Hamas agreed to the plan's call to disarm, Israeli Prime Minister Benjamin Netanyahu rejected the plan more than a week later, undermining the prospect of peace coming to the beleaguered Palestinian territory anytime soon.

Netanyahu’s announcement came as little surprise to observers of the conflict, as far-right Israeli politicians have said withdrawal from Gaza would be “unacceptable”. The Israeli military now controls nearly 70% of the 365-square-kilometre (140-square-mile) territory.

The US plan calls for disarmament and storing the Hamas arsenal to be handled by the National Committee for the Administration of Gaza (NCAG), a Palestinian technocratic body set up in January to run the enclave during a transitional phase.

But the NCAG has yet to be allowed to enter the Gaza Strip and currently remains blocked in Egypt due to Israel’s refusal to let it enter the territory.

While Washington wants to link Hamas's disarmament to a progressive Israeli retreat from the enclave, Israel has said there will be no withdrawal without Hamas's "genuine disarmament".

"Israel does not accept the 15-point document," Netanyahu said unequivocally on Sunday. "The IDF (Israel Defense Forces) will not carry out any withdrawal until Hamas is disarmed. And when I say the disarming of Hamas, it means heavy weaponry, lighter weaponry, all weaponry. And we are talking about genuine disarmament, not fictitious disarmament."

“No one in Israel – even on the left – believes for a second that Hamas is serious when it talks about disarmament," said Denis Charbit, a political science professor at the Open University of Israel. "As soon as the [first phase of a] deal was signed in October 2025, Israelis have always thought the ceasefire would be torpedoed sooner or later.”

Bertrand Badie, professor emeritus at Sciences Po university in Paris, said the deal’s collapse came as no surprise to many commentators, given Trump’s penchant for “short-term wins, headline-grabbing moves and grandstanding”.
Shackling the two-state solution

Trump insisted on Monday that his relationship with Netanyahu is “very good” despite the Israeli leader’s rejection of the Gaza plan a day earlier.

Yet there is room for doubt. When Hamas accepted the US plan in late July, it offered some diplomatic breathing space to Trump, who remains bogged down in Iran. Israel’s rejection of the plan comes as a fresh blow to the US leader on the international scene.

It is also a sign of Israel distancing itself from Washington. Trump and Netanyahu’s relationship took a major hit in June, when Axios reported that Trump called Netanyahu "fucking crazy" and accused him of ingratitude in a phone call.

Once again, Netanyahu is taking the risk of falling out with Washington to satisfy his voter base and boost his far-right allies, who are hostile to any form of compromise with Hamas. Some in his government, like far-right Finance Minister Bezalel Smotrich, have even called for the "full occupation" of Gaza.

Ahead of October's legislative elections, “Netanyahu wants to maintain the carefully constructed image of a leader who cultivates good relationships with foreign leaders but who doesn’t shy away from confrontation when it comes to defending Israel’s national interest,” said Charbit.

Netanyahu’s controversial address to the US Congress at the invitation of Republicans to blast then president Barack Obama's attempts to conclude the 2015 Iran nuclear deal was a classic example, he added.

Netanyahu knows his political and personal future is at stake. Israelis go to the polls on October 27 in the first elections since the horrific October 7, 2023, Hamas-led attacks.

Meanwhile, the Israeli leader faces ongoing charges for corruption, fraud and breach of trust in three separate cases.

“Netanyahu’s domestic and personal politics have always been a decisive factor in his foreign policy decisions,” said Badie. “There is the electoral factor of course, but there is also an overarching vision that rejects any form of agreement with the Palestinian factions. It also seeks to shackle the two-state solution that began taking shape during the Sharm El-Sheikh Peace Summit," which yielded a first Gaza ceasefire plan on October 13, 2025.

‘Grey zone’

Such inflexibility doesn’t come without a cost. By rejecting the 15-point plan put forward by the Trump administration and supported by Arab nations, Netanyahu offered something of a diplomatic victory to Hamas.

The Palestinian movement and its political leader Khalil al-Hayya accepted the second phase of the peace plan for tactical reasons. Hamas wanted to be seen as a "reasonable actor" – and Netanyahu’s refusal worked in its favour, said Ghaith al-Omari, a former Palestinian Authority official who is now a senior fellow at the Washington Institute for Near East Policy.

Badie agreed that the move marked a shift in how the world views the conflict. “Hamas showed the international community, and especially the Arab countries, that it was ready to engage in a deal. This places it in a position of strength," said Badie. "Ultimately, the Palestinian movement finds itself in a position to make certain demands down the line.”

"Egyptian diplomats – and even Jordanian and Saudi negotiators – would have been pleased to see Hamas disappear from the diplomatic stage. Now they must contend with it and no longer blame it for the impasse in Gaza,” he added.

During talks earlier this month between Egyptian Minister of Foreign Affairs Badr Abdelatty and Nikolaï Mladenov, the high representative for Gaza and director-general of Trump's Board of Peace, Egypt called for all parties to honour their engagements and abstain from any action that could compromise the peace process.

While Israel continues to refuse a withdrawal from Gaza, its army has reduced the intensity of its attacks on the territory since August 3. In a meeting between Netanyahu and Mladenov the same day, the latter offered Israel assurances about the peace plan. Israel said its army would only operate in Gaza in response to what it considered immediate threats, according to a report by Reuters.

“We have now entered the grey zone of the deal and it seems like Israel’s 'no' isn’t really one, just like Hamas’s 'yes' isn’t either," said Charbit. "This is the result of the devaluation of diplomatic speech under Trump. Under the circumstances, Israel’s rejection does not necessarily mean the end of the Gaza agreement.”

This article has been translated from the original in French.