The Sunday Brew #132
In this brew - New Cold War in a picture | Category Thinking & Relevance Theory | G7 Summit in Canada, Reliance-Dassault Colab & US-China Trade Deal
Welcome to The Sunday Brew, weekly 1-2-3 newsletter by The Percolator. Every Sunday we drop in your inbox 1 story in a picture, 2 concepts, ideas or frameworks to expand your horizons and 3 news from the week, to keep you updated.
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ONE STORY IN A PICTURE
TWO IDEAS, FRAMEWORKS OR CONCEPTS
This week we bring to you two mental models - Category Thinking & Relevance Theory
Category Thinking
Category Thinking is a mental model that helps us make sense of the world by grouping objects, ideas, or experiences into categories based on shared characteristics. This process allows us to treat a set of distinct things as equivalent in some meaningful way, making our thinking more efficient and enabling us to apply what we know about one member of a category to others.
For example, once you understand what a "truck" is, you can infer a lot about any new truck you encounter, even if you've never seen that specific model before. The mental representation of a category is called a concept, and these concepts are central to intelligent behavior because they let us generalize knowledge from a few examples to a much larger set of situations or objects.
Category Thinking streamlines decision-making and learning by reducing the complexity of new experiences. When you enter a new environment, such as a classroom, you recognize objects like chairs and projectors and know how to interact with them because you have pre-existing concepts of these categories. This ability to generalize is powerful, but it also has limitations.
Sometimes, our categories are too broad or too rigid, leading us to overlook important differences or to misclassify new information. For instance, not every bird flies, and not every vehicle with four wheels is a truck. Still, the efficiency gained by using categories far outweighs these occasional errors, as it allows us to quickly process information and make predictions about the world.
Category Thinking is an essential cognitive shortcut that supports learning, problem-solving, and adaptation. It underpins much of our ability to function in a complex, ever-changing environment by letting us extend what we know to new situations with minimal effort.
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Relevance Theory
Relevance Theory, developed by Dan Sperber and Deirdre Wilson, is a cognitive framework that explains how humans interpret meaning in communication by focusing on the principle of relevance.
The core idea is that every act of communication carries an implicit promise: the information provided will be worth the listener’s effort to process, offering significant cognitive benefits relative to the mental work required to understand it.
Communication, according to this theory, is not just about decoding words but involves an inferential process where the listener uses context, background knowledge, and the speaker’s cues to infer the intended meaning. This process is described as ostensive-inferential communication, where the speaker signals their intention and the listener actively infers what is meant, often going beyond the literal meaning of the words used.
For example, if someone says, “It’s cold in here,” the listener might infer a request to close a window rather than just a statement about temperature, because that is the most relevant interpretation in context.
Relevance Theory distinguishes between explicatures (what is explicitly communicated, often with the help of context) and implicatures (unstated implications inferred by the listener).
The theory also accounts for figurative language, such as irony or metaphor, by suggesting that listeners seek the most relevant interpretation based on the situation.
Unlike earlier models that relied on fixed conversational rules, Relevance Theory argues that communication is dynamic, with both speakers and listeners constantly seeking the optimal balance between cognitive effort and communicative effect. This approach has influenced not only linguistics but also areas like psychology and artificial intelligence, offering a flexible and powerful way to understand how meaning is constructed and interpreted in real-life interactions
THREE NEWS FROM THE WEEK
G7 Summit 2025 in Kananaskis: A Test of Unity Amid Global Turmoil
The 51st G7 Summit convened from June 15 to 17, 2025, in Kananaskis, Alberta, under the Canadian presidency, against a backdrop of escalating global tensions and complex geopolitical challenges. Hosted by Prime Minister Mark Carney, the summit brought together leaders from the world’s major economies, including Canada, the United States, United Kingdom, France, Germany, Italy, Japan, and representatives of the European Union.
This year’s summit was notably marked by deep divisions among members, particularly over the ongoing conflicts in Ukraine and the Middle East. Unlike previous years, the G7 leaders did not issue a joint communiqué, reflecting widening policy rifts, especially between the U.S. and European allies. The summit’s only joint statement called for “de-escalation of hostilities, including a ceasefire in Gaza,” but the language was seen as watered down amid differing national interests.
A significant development was the last-minute invitation extended to Indian Prime Minister Narendra Modi, underscoring India's growing importance in global supply chains and Indo-Pacific security. This inclusion highlighted the G7’s recognition of the need to engage with key emerging economies to maintain relevance.
The summit focused on several priority areas, including peace and security, countering foreign interference, and tackling climate-related challenges such as wildfires. Leaders agreed on six joint statements addressing issues from AI and quantum technology to migrant smuggling and wildfire management. The G7 committed to fostering innovation in quantum technologies and enhancing international cooperation to prevent and respond to increasingly severe wildfires.
Despite the absence of consensus on Ukraine, the Chair’s Summary reaffirmed support for Ukraine’s unconditional ceasefire and the need for Russia to do the same, alongside exploring all options to maximize pressure on Russia.
Prime Minister Carney closed the summit emphasizing a “new era of cooperation” amid a rapidly changing global order, stressing that nostalgia is not a strategy and highlighting the need for adaptive international collaboration.
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Reliance and Dassault Forge Landmark Deal to Manufacture Falcon 2000 Jets in India
In a historic move unveiled at the Paris Air Show, France’s Dassault Aviation and India’s Reliance Aerostructure Limited have signed a landmark agreement to manufacture Falcon 2000 LXS business jets in India. The partnership will see the creation of a dedicated assembly line at Dassault Reliance Aerospace Limited (DRAL) in Nagpur, Maharashtra, marking the first time Dassault will assemble its Falcon series outside France.
The DRAL facility is set to become a global Center of Excellence for Falcon jets, initially focusing on the Falcon 2000 LXS and later expanding to the Falcon 6X and 8X models. This move positions India among an elite group of nations—including the United States, France, Canada, and Brazil—capable of producing next-generation business jets for global markets.
Under the agreement, DRAL will handle the complete fuselage and wing assembly of the Falcon 2000, as well as the front fuselage sections for the Falcon 8X and 6X. The first “Made in India” Falcon 2000 is expected to take flight by 2028, catering to both corporate and military customers worldwide.
This collaboration aligns with India’s “Make in India” and “Atmanirbhar Bharat” initiatives, boosting domestic high-precision engineering and integrating India deeper into the global aerospace supply chain. The project is anticipated to generate hundreds of skilled jobs over the next decade, further strengthening India’s position as a strategic hub for high-end aviation manufacturing.
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US and China Strike New Trade Deal, But High Tariffs Remain
The United States and China have reached a new trade agreement aimed at easing tensions after years of escalating tariffs and economic uncertainty. Following two days of negotiations in London, President Trump announced that the US will lower its tariffs on Chinese goods to 55%, down from a peak of 145% earlier this year. In return, China will reduce its tariffs on American imports to 10%, a significant drop from previous levels as high as 125%.
The deal also addresses critical supply chain issues. China has agreed to resume shipments of rare earth minerals and magnets to US companies, a move welcomed by American manufacturers who rely on these materials for electronics and automotive production. In exchange, the US will ease restrictions on Chinese students studying at American universities and suspend recent threats to revoke their visas.
Despite the agreement, tariffs remain historically high. Retailers like Walmart, which sources about 60% of its products from China, have warned that the elevated tariffs will lead to higher prices for American consumers. Small businesses, already strained by trade uncertainty, expressed concern that the new rates could threaten their survival.
While the White House has touted the agreement as a win, experts caution that the elevated tariffs still act as a tax on US businesses and consumers. Chinese officials, meanwhile, see the deal as a step toward broader negotiations on market access and export controls, but emphasize they are prepared for confrontation if necessary.
The latest truce offers short-term relief, but both sides acknowledge that deeper issues in the US-China trade relationship remain unresolved.
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