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Gavin Newsom finally addresses California’s homelessness crisis

After five years, Gavin Newsom has finally decided to act. Credit: Getty

After five years, Gavin Newsom has finally decided to act. Credit: Getty

August 10 2024 - 5:03pm

On Thursday, California Governor Gavin Newsom, accompanied by television cameras and wearing plastic gloves, personally assisted state workers in cleaning up a homeless encampment beneath a busy freeway in the San Fernando Valley, Los Angeles. This visit follows Newsom’s recent executive order, issued just two weeks prior, which directs state agencies to clear homeless encampments on state-owned property and encourages local governments to adopt similar measures.

Newsom expressed frustration over California’s $24 billion in homelessness spending and its failure to achieve significant results. However, his executive order does not allocate new funding, rendering it essentially voluntary for local governments.

The Governor’s actions are influenced by a recent US Supreme Court ruling that grants cities increased authority to arrest, cite, and fine individuals sleeping in public spaces. This ruling effectively overturns six years of legal protections for the homeless in California and other western states. In the 6-3 decision in Grants Pass v. Johnson, the Court upheld an Oregon city’s ordinance banning camping on public property, contrary to a previous Ninth Circuit ruling. This decision allows cities to impose penalties on unhoused individuals in the absence of alternative housing, significantly impacting homelessness management in California. Newsom, who had supported the ruling through an amicus brief, praised it for clarifying legal ambiguities that had constrained local officials.

As a potential future presidential candidate, Newsom faces substantial criticism over California’s severe homelessness crisis. The state, while home to only 12% of the US population, accounts for more than 180,000 homeless individuals — nearly 30% of the national homeless population. This is largely attributed to its temperate year-round climate, which makes it easy to sleep outdoors, and Proposition 47, a statewide initiative which decriminalized personal drug use of methamphetamine and heroin. Newsom’s recent push to take a tougher stance on homeless encampments, following five years of perceived inaction, has made many in California furious.

His executive order has been met with mixed reactions. San Francisco Mayor London Breed, who is facing a tough re-election in November, has been quick to act. Citing an exhausted shelter system, Breed issued an executive order directing city workers to offer homeless people bus tickets out of town before providing housing or shelter services. Homeless advocates have criticized her actions, stating that it will just spread the problem to other cities. They may be right, but the problem hasn’t left the Golden State: Los Angeles, Sacramento and Humboldt were the top three destinations for homeless people traveling within California.

In Los Angeles, Newsom’s order has met resistance. Supervisor Lindsay Horvath, who has condemned the Supreme Court ruling as ‘unconscionable’, asserted that Los Angeles County is already fully engaged in its homelessness response. Mayor Karen Bass criticized the order, arguing that removing makeshift shelters would criminalize the homeless without effectively addressing the crisis. Los Angeles is home to the highest number of unhoused individuals, with 75,312 in the County, including 45,252 in the City. None of the five County Supervisors, nor the Mayor of Los Angeles will face a re-election this November, which may be the reason they are unwilling to act.

Overall, in a state where billions have been poured into ‘solving homelessness’, all eyes will be on whether Newsom will finally address the problem. California residents, especially those in Los Angeles, should not hold their breath.


China is threatening America in the AI race

Reports sugget Zhipu AI  has released a new model that can rival leading US systems. Credit: Getty

Reports sugget Zhipu AI has released a new model that can rival leading US systems. Credit: Getty

July 1 2026 - 10:18am

China is trying to catch up with America on artificial intelligence. The Wall Street Journal has reported that Zhipu AI — one of China’s six “AI tiger” LLMs — has released a new model that can rival leading US systems, including Anthropic’s Mythos, in cybersecurity tasks such as pinpointing security bugs. While this marks a milestone in China’s drive to catch up with Western AI capabilities, strong performance on a single benchmark does not mean it has taken the lead. Chinese models still lag behind their Western counterparts in broader capabilities, such as autonomous operation. Skepticism is therefore warranted before resorting to hysterical conclusions, but complacency about the geopolitical implications of China’s AI advances would be an even greater mistake.

On the infrastructure side, Chinese AI is still constrained by access to advanced chips, with American labs way ahead in computing capacity as well as investment. Analysis from earlier this year suggests that Chinese models are likely to be at least a few months behind those in the US. But they are still continuing to make progress, or that the geopolitical importance of AI will be decided only by whose LLM has ventured deeper into the technological frontier. The practical applications of AI, countries’ to capture foreign markets, and the application of AI into the real economy will matter just as much.

Here, China may hold an advantage. As with its dominance across many critical supply chains, Beijing may not need to produce the most advanced AI systems — only those that are affordable and widely deployable. In doing so, it could consolidate global influence by supplying functional, low-cost AI at scale.

Beijing seems to be pursuing exactly that path, developing an AI “open-source” strategy that offers affordable, widely available AI models for companies and individuals to use and modify as they wish. The production of the DeepSeek AI model, which matched the performance of Silicon Valley tools such as ChatGPT at a fraction of the cost for users, created goodwill among Chinese models with developers.

The four most popular models on OpenRouter, an AI hardware platform for developers, are now all Chinese. The goal for China is not only to win the frontier-model race, but to make its systems the default layer of AI adoption across industries and global markets. For most economies, the choice is increasingly between an affordable tool they can deploy now and a more robust one that may be out of reach.

And while the countries adopting Chinese models may be exposed to political pressure and cyber threats from Beijing, safer and more capable alternatives matter little if they are unaffordable. American AI companies are already under pressure to monetize products whose operating costs are rising. If Chinese open-source models become the cheap default for startups, universities, governments and businesses across the developing world, then America’s AI lead will be eroded from below.

Perhaps more concerning for America in the long run is how AI can give Chinese manufacturing even more strength, through the ongoing integration of AI as a general-purpose technology. China’s new Five-Year Plan mentioned AI more than 50 times and includes an “AI+” action plan aimed at spreading AI across the economy.

Beijing has been pioneering automation of its critical infrastructure for years, with promising recent results in increasing warplane production capacity. In that regard, China’s open-model strategy and manufacturing dominance will reinforce each other. Cheap, adaptable models accelerate deployment across the real economy while those deployments generate real-world data and use cases that can feed back into further model improvement.

The United States should not dismiss the importance of its lead in the AI race. That lead worries Beijing, not least because a more automated Chinese economy would also become more vulnerable to AI-generated cyber threats. But nor should Washington assume that China cannot catch up with American capabilities over time.

This AI competition represents part of a broader struggle over tech supply chains and geopolitical influence. Decisions over whether to adopt US or Chinese models could produce a more fragmented global reality, with different regions relying on different cloud providers, chips and security structures. The result will likely be a global economy which is divided into competing spheres, rather than one which produces a single winner.


Miquel Vila is a political and geopolitical risk consultant focusing on industrial strategy, critical infrastructure and global supply chains.

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