Gas below $4/gallon, China, South Korea at odds, Kemp policy proposals

The national average of gas dropped below $4 a gallon for the first time in five months Thursday, a day after China made demands to South Korea regarding a U.S. missile system. As for what is on tap for Thursday, Georgia Gov. Brian Kemp (R) is set to unveil his policy proposals ahead of a contentious midterm race.

Gas prices dip below $4 a gallon – According to AAA, the national average for a gallon of regular gas fell below $4 for the first time in five months. Thursday’s update came a day after the shopping app GasBuddy reported that the national average was down to $3.98.

According to the Bureau of Labor Statistics report out Wednesday, energy prices have fallen from June to July, fueling a flattening in month to month inflation and a drop in year to year inflation. While the decline in gas prices is a good sign, prices at the pump are still 44 percent higher than this time last year.

China makes demands to South Korea – Tensions have grown between China and South Korea surrounding a U.S. missile defense shield installed in South Korea back in 2016. China has contended the Terminal High Altitude Area Defense (THAAD) system could peer into the country’s airspace.

South Korea’s Foreign Minister Park Jin and his Chinese counterpart, Wang Yi met Tuesday. On Wednesday, A Wang spokesman said the THAAD deployment “undermines China’s strategic security interest”. China has insisted that South Korea abide by “one restriction” – limiting the use of existing THAAD batteries.

A senior official in South Korea’s presidential office told reporters on Thursday that THAAD is a means of self-defense and can never be subject to negotiations.

Gov. Brian Kemp’s midterm plan – Georgia Gov. Brian Kemp (R) will unveil his first major policy proposals of his reelection bid on Thursday. Highlights of the expected proposal include another income tax rebate and the revival of a property tax break.

Gov. Kemp is leading challenger Stacy Abrams, according to polling from FiveThirtyEight, in one of the most high profile gubernatorial races set for this November. This week, Abrams argued Republicans are denying basic services and ignoring inequities in pursuit of low spending and tax cuts for the rich.

The Associated Press and Reuters contributed to this report.