Tag Archives: Afghan

Global Developments and Analysis: Weekly Monitor, 11 July – 17 July 2022

Economic
China faces difficult decisions with slide in economic growth

China’s economic growth teetered on the brink of contraction in the second quarter year on year, reflecting a two-month lockdown of the financial and industrial hub of Shanghai. This came on top of Covid-19 shutdowns and travel curbs that have hampered recovery in the world’s second-biggest economy. Following an increase in gross domestic product of 4.8 per cent in the first quarter, growth in the three months to June of just 0.4 per cent dragged expansion in the first half down to 2.5 per cent. This year’s growth target of “around 5.5 per cent” would require a bounce back to 7.5 per cent in the second half. But a return to stable growth will be the paramount goal of Beijing ahead of a landmark political meeting later this year, the 20th national party congress, which includes a leadership reshuffle. This can be expected to lead to increased pressure to fine-tune President Xi Jinping’s zero-Covid strategy and for stimulatory measures, such as looser monetary policy and fiscal stimulus, without triggering a surge of inflation. This is in contrast to a tightening cycle to combat inflationary growth well under way among China’s trading partners. Recent statements by top leaders have shown a rising sense of urgency about the need to put the economy back on a stable track. However, if there is to be a new round of credit-driven investment it should not be at the cost of exacerbating local debt problems. Click here to read…

China and EU to hold high-level trade talks this week after months of delays

Just before the summer lull hits Brussels, the European Union will hold a high-level trade dialogue with China on July 19 – talks the 27-member bloc has been trying to organise for more than three months. Valdis Dombrovskis, the European commissioner for trade, and Chinese vice-premier Liu He will co-chair the virtual meeting, which will also include representatives from the trade and economic ministries of both sides. According to a European Commission representative, a number of global economic challenges will be discussed, including food security and energy prices, supply chains, financial services, and bilateral trade and investment concerns. “The dialogue is taking place against the background of war in Europe and increasing uncertainties in the global economic outlook,” the representative said. The last high-level meeting between the EU and China was a virtual summit in April; it ended unsuccessfully after the EU failed to gain any assurances from China that it would not support Russia’s war against Ukraine financially or militarily. But both sides agreed to talk again “to find concrete ways to progress on these issues before the summer”. While Brussels continued pushing Beijing to nail down a date, China took time in responding. Click here to read…

Europe Fears Widespread Economic Fallout if Russian Gas Outage Drags On

As a deadline approaches for Russia to resume supplying natural gas to Germany this week, European officials and executives are growing concerned about a cascading economic fallout that would spread across the continent should Moscow keep the tap shut. The Nord Stream pipeline that ferries gas from Siberia to Germany closed July 11 for annual maintenance that is expected to last 10 days. Many in the West fear that Moscow might prolong the closure, possibly permanently, and deprive Germany, Europe’s industrial powerhouse, of a key ingredient for its and its neighbors’ factories. European leaders blamed Moscow for using gas as a weapon when flows along the pipeline began to ebb last month. Moscow blamed that shortfall on technical issues related to Western sanctions. According to the annual maintenance schedule, Nord Stream goes back online July 21, meaning that gas flow should resume the following day. Complicating the calculus, officials and executives say it might not be easy to determine whether Russia is restoring gas flows fully. Under one scenario, Moscow could switch the pipeline back on but with lower volumes, as it already has, citing technical problems linked to the sanctions. Germany is highly dependent on Russian gas, and it also acts as a transit hub for gas headed to Austria, the Czech Republic and Ukraine. Click here to read…

China jobs: youth unemployment hits record high in June – nearly 1 in 5 young people out of work

The hits keep coming for China’s disillusioned youth who increasingly cannot seem to catch a break when it comes to landing work in a job market that – at least for their demographic – keeps going from really bad to even worse. Nearly one out of five young jobseekers were unemployed last month as China’s youth unemployment rate hit an all-time high of 19.3 per cent in June, official figures show. It was a sharp rise from 18.4 per cent in May, and marked a year-on-year increase of 25 per cent. The intensifying struggle among those aged 16-24 to carve out their own piece of China’s economic pie came in the midst of the nation’s economy growing by a mere 0.4 per cent in the second quarter of 2022, year on year. This was largely the result of Beijing’s zero-Covid strategy, which forced large-scale lockdowns in Shanghai and other major cities – far from ideal conditions in which China’s latest army of fresh college graduates were plunged into. China’s National Bureau of Statistics (NBS) has previously noted that new graduates generally push the unemployment rate upward come June and July each year, but the youth unemployment rate has seen a steady rise since October. Click here to read…

A fifth of Chinese developers face insolvency as investors grow tired of repeated bond extensions, S&P Global warns

At least a fifth of rated Chinese property developers will end up becoming insolvent, putting as much as US$88 billion of their distressed bonds at risk, according to S&P Global Ratings. While some developers have resorted to debt extensions and bond exchanges to buy time to avoid default, investors will soon lose patience and press their claims through the courts or debt restructuring if a recovery of the sector does not play out by the first quarter of 2023, the ratings agency said. Exchanges and debt extensions have been the two most common ways for Chinese developers to resolve their bond default risks. Guangzhou R&F Properties, for example, recently received approval to regroup all 10 tranches of its offshore bonds worth a total of US$4.94 billion due between now and 2024 into three amortisation notes that mature in 2025, 2027 and 2028, giving it three to four years of breathing room as it struggles to raise cash. But “this forbearance may not continue,” said S&P. “If a sales turnaround is not forthcoming, investors will reject repeated extensions. “The end of the beginning is at hand for China developer defaults.” Click here to read…

Russia has price cap-busting oil plan – media

Russia has ramped up efforts to create its own national oil pricing benchmark as part of its response to Western efforts to limit its oil revenues, Bloomberg reported on July 14, citing government and industry sources. According to the agency, the Western sanctions campaign, which was launched after Russia began its military operation in Ukraine, and the attempts to squeeze its oil export revenue with a proposed price cap, have reinvigorated the idea. US Treasury secretary Janet Yellen is attempting to set an upper limit on how much Moscow can charge for its crude exports. Some experts have warned that the scheme may backfire. The Russian government wants to have a pricing benchmark in action sometime between March and July of 2023, the business news outlet reported. Discussions about the plan are in the early stages, but were confirmed by an executive in the energy industry, the report said. The country has tried for years to launch a national benchmark based on crude trade at the St. Petersburg International Mercantile Exchange, but the volume of foreign deals made on the exchange has not been high enough for this purpose. The US and its allies are seeking to damage Russian crude trade with nations like China and India, which refused to join the sanctions drive, by leveraging their dominance in the areas of insurance and finance. Click here to read…

Saudi Arabia outlines what it will do for oil output

Saudi Arabia is ready to increase oil production to its maximum of 13 million barrels per day but does not have the capacity to pump out more, Crown Prince Mohammed bin Salman said during his address at the US-Arab summit in Jeddah on July 16. “The kingdom has announced an increase in its production capacity level to 13 million barrels per day, after which the kingdom will not have any additional capacity to increase production,” he was quoted as saying by UAE’s newspaper The National. The crown prince also said that the global community should join forces to support the worldwide economy, but noted that unrealistic policies regarding energy sources would only worsen the situation. “Adopting unrealistic policies to reduce emissions by excluding main sources of energy will lead in coming years to unprecedented inflation and an increase in energy prices and rising unemployment, and a worsening of serious social and security problems,” he stated. Mohammed bin Salman’s words come a day after his talks with Joe Biden, who was in Saudi Arabia on his first visit as US president, and urged the kingdom to increase oil production in order to reduce global reliance on supplies from Russia. Commenting on his trip to the kingdom, Biden said Saudi Arabia’s “energy resources are vital for mitigating the impact on global supplies of Russia’s war in Ukraine.Click here to read…

Middle East Buyers Ramp Up Russian Fuel Imports

US and European sanctions have led to a significant shift in the direction of Russian energy flows. Bloomberg reports diesel and other fuel products shunned by many countries in the West are heading to the Middle East. Increasing flows began after the Russian invasion of Ukraine and reached 155,000 barrels a day in June, according to new data from Vortexa Ltd. Meanwhile, European imports have slumped 30% since the invasion on Feb. 24. Vortexa’s data shows most of the products arriving in the Middle East from Russian ports are fuel oil, diesel/gasoil, and more recently, jet fuel and kerosene. “Most of the Middle East’s imports from Russia are of fuel oil — a leftover from the refining process and often used in power generation and shipping,” Bloomberg noted. About a third of the inflows of fuel products went into the Fujairah Oil Terminal for storage in the United Arab Emirates. Imports of Russian fuel products are at a 2016 high and could increase further because of Western trade restrictions to punish President Putin for the invasion of Ukraine. However, Koen Wessels, senior oil products analyst at Energy Aspects Ltd, said Russian flows to the Middle East will be temporary and could eventually slow because of shipping insurance-related restrictions for vessels leaving Russian ports. Click here to read…

Afghan minister holds talks with Chinese mining firm, progress to be expected

An Afghan government official from the mining sector met with the representative of a Chinese mining company July 17, and they discussed issues ranging from technical to financial operations of the Aynak copper project, the second-largest copper ore body in the world. But an insider said that no substantive progress was made. A staffer of Chinese mining giant Metallurgical Group Corp (MCC), the company that owns the Aynak copper project, told the Global Times July 18 that the company has staff in Afghanistan at the moment, and they are keeping in close contact with the new Afghan government over the project. The remark came as the Acting Minister of Mines and Petroleum Sheikh Shahabuddin Delawar held a meeting Sunday with a vice president of MCC-JCL Aynak Minerals Co (MJAM), a Chinese-funded mining company registered in Afghanistan under MCC, according to the official website of the Afghan Ministry of Mines and Petroleum. Discussions were held at the meeting on the latest developments, as well as technical, financial and land acquisition issues, and the transfer of ancient artifacts in the field of the Aynak project, said the ministry. While there have been frequent talks, no substantive progress has been made, the Global Times learned. “The only thing we needed to confirm with the Afghan government is the ownership of the mine, which has already been done with the new government,” a staffer with the MCC Group said. Click here to read…

Kishida: Up to 9 nuclear reactors to go online by winter

Prime Minister Fumio Kishida said the central government intends to bring up to nine nuclear reactors online this winter to prepare for possible power shortages during peak periods. Kishida told a July 14 news conference that he instructed economy minister Koichi Hagiuda to start preparations. “We are aiming to put as many nuclear reactors as possible online,” said Kishida. “We will have up to nine reactors operating this winter to secure enough sources of energy to cover about 10 percent of Japan’s overall power consumption.” The move comes as the government is asking the public to save electricity this summer amid a power shortage, which will likely become even more severe in the winter. According to government sources, five of the nine reactors are at Kansai Electric Power Co.’s nuclear power plants in Fukui Prefecture: the No. 3 and No. 4 reactors at the Oi plant; the No. 3 reactor at the Mihama plant; and the No. 3 and No. 4 reactors at the Takahama plant. All nine reactors were brought online at least once after passing the Nuclear Regulation Authority’s screening for a restart. Four were in operation as of July 14. Kishida said he also instructed government officials to get 10 more units of thermal power plants ready for operations to ensure a stable power supply during peak periods. Click here to read…

China closes in on Japan’s hydrogen technology patent lead

Though Japan continues to lead the world in hydrogen-related technology, its edge is narrowing as new patent filings by the country’s companies and research institutions slow while Chinese players forge ahead with government backing. Hydrogen is considered the ultimate clean fuel since it emits no carbon dioxide when burned. Tokyo-based research company Astamuse, in which Nikkei has a stake, has compiled a ranking of countries, scored in terms of the competitiveness of their hydrogen technologies between 2011 and 2020, based on the number of times their patents were cited in similar patent applications, expiration dates and other data. The 2020 figures were based on preliminary data. Japan came out on top overall propelled by its strength in fuel-cell patents, which are key to harnessing hydrogen to power cars, homes and factories. Toyota Motor has been developing fuel-cell vehicles for the past three decades, and became the first automaker in the world to commercialize the vehicles in 2014. It had expanded their driving range about 30% by 2020. Japanese petroleum company ENEOS and Industrial gases company Iwatani operate more than 160 hydrogen stations, and are working to halve the cost of building a new station from the current range of 300 million yen to 400 million yen ($2.19 million to $2.91 million) currently. Click here to read…

China locks in record long-term LNG deals to bolster energy security

As global competition for liquefied natural gas intensifies in response to the Ukraine war, China is increasingly turning to long-term contracts of a decade or more to ensure the country’s growing needs will continue to be met years into the future. Chinese demand for natural gas grew at the fastest rate on record in 2021. LNG demand jumped 18% to 78.9 million tons, surpassing Japan as the largest importer. Spot contracts accounted for 39% of China’s LNG imports last year. But contracts lasting 10 to 20 years make up a rapidly growing portion of those with delivery dates in 2022 and beyond. Chinese players signed 23 long-term contracts for a total of 27 million tons of LNG in 2021, according to Mika Takehara at Japan Oil, Gas and Metals National Corp. Both figures were among the largest on record, she said. Most LNG was purchased by China’s three state-owned energy groups — China National Petroleum Corp., CNOOC and China Petrochemical, known as Sinopec. But energy companies owned by regional governments and private-sector utilities are also increasingly dealing directly with overseas suppliers. Three-quarters of the sellers were located in the U.S., Qatar and Russia. Between January 2021 and this April, Chinese companies had signed 10 contracts for 13.9 million tons to 14.8 million tons of LNG from American entities alone. Click here to read…

Myanmar revokes foreign company exemption from currency rules

The Central Bank of Myanmar on July 13 reversed its position on exempting foreign companies from forced exchanges of currency to the local kyat, several sources at the bank said. The central bank in April had instructed financial institutions to convert foreign currency earned by its customers into kyat within one business day. Existing foreign-currency deposits were also to be converted into the kyat in stages. In mid-June, the bank issued a notice exempting companies that are 10% or more owned by overseas entities, which applied to the majority of foreign companies doing business in Myanmar. It has now rescinded this exception in a new notice, sources said. Companies making investments approved by the Myanmar Investment Commission, as well those operating in special economic zones, are expected to remain exempt. The currency exchange rule comes as Myanmar suffers a serious shortage of foreign currency following its military takeover in February 2021. The government established the Foreign Exchange Supervisory Committee in April, which now must approve any conversions from kyat to a foreign currency, or money transfers abroad. Foreign currency from the forced conversions will be used to repay foreign debt flagged as a priority by the FESC. Click here to read…

Why China can’t let Laos default

Laos faces intensifying economic and financial crises and there is likely no way out without some form of a Chinese bailout or debt forgiveness. Various warning signs are blinking red in the small Southeast Asian country. The national currency, the kip, has lost around a third of its value against the US dollar compared to this time last year. Inflation hit 23% in June, its highest level in decades. Meanwhile, much of the landlocked country faces fuel shortages. The communist-run government has huffed and bluffed but finally undertook a cabinet reshuffle in late June, bringing in a new commerce minister and central bank governor. Some emergency measures have stemmed certain economic problems from worsening. But those haven’t alleviated the nation’s underlying financial woes, which are now more precarious than ever. “The chances that Laos will default on its debt obligations are extremely high,” says Carl Thayer, an emeritus professor at the University of New South Wales in Australia. Indeed, the country’s foreign debts have swelled to over US$14 billion, or 88% of gross domestic product (GDP). Around half that amount is owed to China, including the Lao state’s one-third stake in the $5.9 billion China-Laos railway, a megaproject that opened in December amid concerns about the line’s commercial viability. Vientiane barely scraped through making its annual debt repayments last year. Click here to read…

Super-strong dollar imperils world economy

The US dollar has been on a major surge against major global currencies in the past year, recently hitting levels not seen in 20 years. It has gained 15% against the British pound, 16% against the euro and 23% against the Japanese yen. The dollar is the world’s reserve currency, which means it is used in most international transactions. As a result, changes in its value have implications for the entire global economy. Below are five of the main ones. 1. Even more inflation. Petrol and most commodities such as metals or timber are usually traded in US dollars (though with exceptions). So when the dollar gets stronger, these items cost more in local currency. For example in British pounds, the cost of US$100-worth of petrol has risen over the past year from £72 to £84. And since the price per liter of petrol in US dollars has risen steeply as well, it is creating a double whammy. When energy and raw materials cost more, the prices of many products go up for consumers and businesses, causing inflation around the world. The only exception is the US, where a stronger dollar makes it cheaper to import consumer products and therefore could help to tame inflation. Click here to read…

Strategic
‘Judgment Day’ warning as Russia hunts Ukraine’s US-made HIMARS

Nearly five months since President Vladimir Putin ordered the February 24 invasion of Ukraine, Russian forces are grinding through the Donbas region of eastern Ukraine and now occupy around a fifth of the country. Shoigu, one of Putin’s closest allies, inspected the Vostok group which is fighting in Ukraine, the defence ministry said. Shoigu “instructed the commander to give priority to the enemy’s long-range missile and artillery weapons,” the defence ministry said. The ministry said the weapons were being used to shell residential areas of Russian-controlled Donbas and to deliberately set fire to wheat fields and grain storage silos. Russian defence ministry spokesman Igor Konashenkov said a depot in the Black Sea port of Odesa that stored Harpoon anti-ship missiles was hit, while a US-supplied HIMARS multiple-launch rocket system was struck in the eastern Donetsk region. There are concerns in Moscow that Ukraine’s longer-range missiles could be used to target Crimea, which Russia annexed from Ukraine in 2014. Crimea is of particular strategic importance to Russia as it includes the headquarters of its Black Sea fleet at Sevastopol. Another prized target would be the 18km (11-mile) bridge that links the Black Sea peninsula with mainland Russia. That prospect of an attack on Crimea prompted a warning from Russia’s former president Dmitry Medvedev, who said such an attack would trigger devastating consequences for the Ukrainian leadership. Click here to read…

Chinese military upgrades near disputed Himalayan border viewed as provocative in India

The upgrading of China’s military projection and logistics capabilities along the Line of Actual Control (LAC) in the Himalayas, designed to prepare for contingencies, is being viewed by the Indian side as offensive and provocative. Citing Indian intelligence sources, The Hindu said the People’s Liberation Army had expanded its troop accommodation capacity within 100km (60 miles) of the LAC from 20,000 to 120,000 in the past two years. The Indian newspaper’s report, published late last month, said the PLA had deployed four divisions, or 48,000 troops, from its Xinjiang military district, with the soldiers being rotated on the disputed border facing eastern Ladakh, where the worst fighting in over four decades saw at least 20 Indian soldiers and four from the PLA killed in the Galwan Valley two years ago. Zhou Chenming, a researcher from the Yuan Wang military science and technology think tank in Beijing, confirmed the PLA had renovated and expanded barracks along the LAC since that clash, including permanent buildings and temporary ones. “Many of the permanent buildings are warehouses for fuel storage, while other accommodation and portable facilities will be used for housing troops,” Zhou said, adding that the PLA was capable of deploying up to 120,000 troops to the LAC in a week if necessary. “China doesn’t need to station so many troops in border areas because of its powerful military projection capacity and infrastructure and logistics supply network.” Click here to read…

South Korea’s Yoon faces becoming a ‘lame duck’ as nepotism claims, wife’s gaffes hit ratings

Barely two months after South Korean President Yoon Suk-yeol took office, his support base has quickly dwindled as a lack of experience, accusations of a poor attitude, gaffes and various political and personal issues weigh on his approval ratings. This could complicate his political agenda, especially in a parliament where the liberal opposition Democratic Party dominates his conservative People Power Party. His approval rating plunged to 32 per cent from a high of 53 per cent five weeks earlier, according to an opinion poll last week by Gallup Korea. Disapproval stood at 53 per cent, up 19 percentage points in the same five-week period. Yoon’s approval rating could extend its decline, as he had barely two months to rally his base before his ratings began to tank. Approval ratings of South Korea’s presidents typically stand at 70-80 per cent during their early months in office, fuelled by high expectations for their new governments. Resentment among conservatives against former president Moon Jae-in’s political missteps such as skyrocketing real estate prices and his associates’ alleged nepotism had helped Yoon to the presidency. Yoon was initially lauded for delivering on his election promise to make himself more accessible than his predecessors, allowing journalists to question him on his way to work every morning, a first for a South Korean president. But he came under fire for his curt responses and poor attitude. Click here to read…

China’s Communist Party finds it easier to win hearts and minds at home than overseas

When Xi Jinping became China’s president in 2013, he showed he was determined to maintain the Communist Party’s mandate to rule by winning the people’s hearts and minds. At the start of his first term he ordered bureaucrats across the country to confess any loss of touch with the grass roots to the party. The campaign ended up lasting for more than a year. He also kicked off a far-reaching anti-corruption campaign, with graft busters setting up a website and a social media account that enabled people to report corruption via their phones. Xi also famously warned the party in 2013 of the risk of losing the people’s trust, using the term Tacitus Trap, which describes a lack of trust in a government regardless of its actions. Yet just months before Xi is set to begin his third term as the party’s leader at this year’s 20th party congress, crises have emerged that point at the heart of trust in the government, including a banking fiasco in which thousands of people risk losing all their savings in local banks. The Tacitus Trap, named after the Roman historian, describes the dire situation facing a government when no matter what it says or does, people assume it is a lie or a bad deed. It was one of three traps, along with the middle-income trap and the Thucydides Trap, that Xi warned publicly in 2013 could undermine China’s rise. Click here to read…

Three more countries set to join BRICS – official

Saudi Arabia, Turkey, and Egypt plan to join BRICS, and their potential membership bids could be discussed and answered at next year’s summit in South Africa, Purnima Anand, the president of the organization, told Russian media on July 14. “All these countries have shown their interest in joining [BRICS] and are preparing to apply for membership. I believe this is a good step, because expansion is always looked upon favorably; it will definitely bolster BRICS’ global influence,” she told Russian newspaper Izvestia. The BRICS nations (Brazil, Russia, India, China, and South Africa) account for over 40% of the global population and nearly a quarter of the world’s GDP. Anand said the issue of expansion was raised during this year’s BRICS summit, which took place in late June in Beijing. The BRICS Forum president said she hopes the accession of Saudi Arabia, Turkey, and Egypt will not take much time, given that they “are already engaged in the process,” though doubts that all three will join the alliance at the same time. The news of the three nations’ plans to join BRICS comes after Iran and Argentina officially applied for membership in late June, with Iranian Foreign Ministry spokesman Saeed Khatibzadeh touting the bloc as a “very creative mechanism with broad aspects.” Click here to read…

Italian president rejects PM Draghi’s resignation

Italian President Sergio Mattarella on July 14 rejected Prime Minister Mario Draghi’s attempt to resign. Draghi announced his intent to step down after he survived a confidence vote but lost the backing of his largest coalition partner. Draghi met with Mattarella following a confidence vote in the Italian Senate earlier in the afternoon. While the PM comfortably survived the vote by 172-39, the ballot was boycotted by the Five Star Movement, the largest partner in Draghi’s broad coalition government. Having earlier stated that he would not remain in power without the support of the Five Star populists, Draghi said that he would step down as the conditions to govern “no longer exist.” However, Mattarella has the power to accept or reject the prime minister’s resignation, and he chose the latter option. The move sends Draghi back to Parliament where a fresh confidence vote will likely be held. Should Draghi win the support of lawmakers, snap elections could be avoided. Mattarella appointed Draghi, who formerly led the European Central Bank, in 2021, in a bid to stave off an economic downturn as Italy recovered from the coronavirus pandemic. However, Draghi has faced persistent criticism from the Five Star Movement’s leader, Giuseppe Conte, over rising inflation and energy costs, as well as his support for EU sanctions on Russia and weapons shipments to Ukraine. Click here to read…

Russia-Ukraine grain talks outcome revealed

Russia and Ukraine have agreed to establish a joint coordination center on grain exports in Istanbul that will include representatives from all parties, Turkish Defense Minister Hulusi Akar told local media following the four-way talks that also involved Turkey and the UN. On July 13, negotiators from Russia, Ukraine, Turkey and the UN met in the Turkish city to discuss the situation regarding the held-up Ukrainian exports. Ahead of the meeting, Ukraine’s Foreign Minister Dmitry Kuleba said that Kiev and Moscow had been close to breaking the impasse on the issue. “An agreement has been reached on technical issues such as joint controls at the destination points and … the safety of navigation on the transfer routes,” Akar told journalists. Russian and Ukrainian delegations “should meet again in Turkey next week,” he said, adding that the parties would “review all the details once again” during that meeting. Ukraine is one of the world’s leading grain exporters. Yet, it has been unable to export its grain by sea due to the ongoing conflict with Russia. Kiev and Western nations have accused Moscow of preventing Ukrainian grain shipments from leaving the nation’s Black Sea ports. Click here to read…

South Korea seeks to kickstart talks to resolve historical feuds with Japan

South Korea hopes a high-level visit to Tokyo next week will kickstart talks aimed at a breakthrough in historical disputes despite concerns the death of former Japanese premier Shinzo Abe could disrupt efforts to mend ties, Seoul officials said. Relations between the two North Asian U.S. allies have been strained over disputes dating to Japan’s 1910-1945 occupation of Korea. Washington has been pressing Tokyo and Seoul to mend fences in the face of the North Korean nuclear threat and the rising influence of China. Officials in the administration of new South Korean President Yoon Suk-yeol, who took office in May vowing to improve ties with Japan, told Reuters they feel emboldened by Japanese Prime Minister Fumio Kishida’s recent election victory which could give him more scope to advance his policy agenda for another three years. Foreign Minister Park Jin will visit Tokyo as early as next week, a trip which a senior official handling Japan policy said is aimed at “turning on the tap” for serious negotiations on issues relating to wartime laborers, which stalled under Yoon’s predecessor. Park will visit Tokyo on July 18, Japan’s public broadcaster NHK reported on July 14. South Korea did not immediately confirm the report. Yoon would also likely use his Aug. 15 Liberation Day speech marking Korea’s independence from Japan as a chance to send a reconciliatory message to Tokyo, the official added. Click here to read…

China’s Xi visits Xinjiang for first time in 8 years

Chinese President Xi Jinping visited Xinjiang this week for the first time since 2014, seeking to demonstrate his success in subduing the country’s restive northwestern region. The trip, reported by state broadcaster China Central TV and other news outlets, comes as Xi works to solidify a rare third term as leader of the Chinese Communist Party at its twice-a-decade congress this fall. Xi observed freight trains on the China-Europe Railway Express in the regional capital of Urumqi on July 12. “With the Belt and Road Initiative progressing, Xinjiang is no longer an outlying area,” he said. “It has become a pivotal region with historical significance.” The following day, Xi visited a residential community in Urumqi and watched a traditional dance performance by Uyghur Muslims. “We need to bring even more happiness to the lives of different ethnic groups,” he said. The state-run Xinhua News Agency published a photo of a maskless Xi walking the streets, surrounded by Uyghur children. During Xi’s last visit to the Xinjiang region in September 2014, suicide bombers attacked a train station in Urumqi. He warned of a protracted struggle with “terrorist separatists” in the region and ordered a crackdown against “terrorist elements.” The Xi administration has pushed for the “sinicization” of Islam in Xinjiang. Click here to read…

China, Russia military activity near Japan up 2.5 times since Ukraine

Chinese and Russian military activity around Japan increased 2.5 times in the four months following Russia’s invasion of Ukraine on Feb. 24, sparking alarm here over a potential escalation. Releases by Japan’s Ministry of Defense show 90 instances of activity by Chinese and Russian military vessels and aircraft near Japan in the four months after the invasion began. There had been 35 in the four months before. A Chinese vessel and Russian vessel entered Japan’s contiguous zone near the Japanese-administered Senkaku Islands on July 4. The Russian vessel then sailed north through the Senkakus on July 5 before entering the contiguous zone near Japan’s southernmost Okinotori islets the following day. The type of activity recorded has also shifted since the Ukraine invasion began. On June 7, four aircraft believed to be part of the Russian military flew straight toward Japan from west of Hokkaido. They shifted course just before entering Japanese airspace after the Japan Air Self-Defense Force scrambled fighter jets in response. Before turning away, the four planes were on a trajectory toward Hokkaido’s largest city of Sapporo, a Japanese defense official said. Concern is growing that such activity may be part of planned military operations in the area. Click here to read…

Abe’s house of cards: Death leaves largest party faction in limbo

Nearly a week after an assassin took the life of former Japanese Prime Minister Shinzo Abe, the ruling party faction he led has yet to zero in on a possible successor. The largest faction in the Liberal Democratic Party, known as Seiwa-kai, is scrambling to maintain unity. But Abe’s murder left the group with little time to select and groom a suitable successor, putting it in a precarious position. The group boasts 93 conservative-leaning upper and lower house LDP lawmakers, with many calling for bigger military spending and revising the nation’s pacifist charter. After producing the longest-serving prime minister, the group yields enormous clout in the party. Senior members met July 11 at a Tokyo hotel to discuss the next step but could only muster a vague pledge to maintain solidarity. In 2017, Abe floated the idea of having four core leaders in the faction, modeled after a similar setup his father, Shintaro Abe, had when he led the faction decades ago. Given the lack of a clear leader, the faction could opt for this option. Right now, Hakubun Shimomura and Ryu Shionoya, both former education ministers, are serving as acting chairs of the faction. They have supported Abe’s family through the ordeal by meeting with mourners at his private residence. “There are proposals to have two acting chairs or to set up a seven-person structure,” said a senior member of Abe’s faction. Click here to read…

Sri Lanka’s acting president declares state of emergency

Sri Lanka’s acting President Ranil Wickremesinghe has declared a state of emergency, according to a government notice released late on July 17, as his administration seeks to quell social unrest and tackle an economic crisis gripping the island nation. “It is expedient, so to do, in the interests of public security, the protection of public order and the maintenance of supplies and services essential to the life of the community,” the notification stated. Sri Lanka’s ousted President Gotabaya Rajapaksa, who fled overseas this week to escape a popular uprising against his government, has said he took “all possible steps” to avert the economic crisis that has engulfed the island nation. Gotabaya Rajapaksa’s resignation was accepted by parliament on July 15. He flew to the Maldives and then Singapore after hundreds of thousands of anti-government protesters came out onto the streets of Colombo a week ago and occupied his official residence and offices. Sri Lanka’s parliament met on July 16 to begin the process of electing a new president, and a shipment of fuel arrived to provide some relief to the crisis-hit nation. Wickremesinghe, an ally of Rajapaksa, is one of the top contenders to take on the presidency full-time but protesters also want him gone, leading to the prospect of further unrest should he be elected. Click here to read…

Biden Lays Out a U.S. Middle East Vision Heavy on Diplomacy

President Biden laid out his vision for the U.S. role in the Middle East July 16, pledging to stay engaged in the region and strengthen relationships with Arab nations to counter the influence of China, Russia and Iran. “The United States is going to remain an active engaged partner in the Middle East as the world grows more competitive, and the challenges we face more complex,” Mr. Biden said in a 10-minute speech in this seaside town during a summit of Arab leaders. “It’s only becoming clear to me how closely interwoven America’s interests are with the successes of the Middle East.” “We will not walk away and leave a vacuum to be filled by China, Russia or Iran,” he added. He also repeated a pledge that the U.S. is committed to preventing Iran from acquiring a nuclear weapon. Mr. Biden said the U.S. would chart a new approach to the Middle East focused on diplomacy over aggression. “Today, I’m proud to be able to say that the era of land wars in the region, wars involving huge numbers of American forces, is not underway,” he said. Mr. Biden’s speech comes amid mounting concern about Washington’s commitment to the region, which was galvanized by the chaotic pullout from Afghanistan last summer. Click here to read…

Biden disputes Saudi minister’s account of meeting with MBS

President Joe Biden hints the foreign minister of Saudi Arabia was not being truthful in his account of the US leader’s meeting with the kingdom’s crown prince, Mohammed bin Salman (MBS). Biden was referring to comments made by Adel al-Jubeir, who told Fox News he did not “hear” the US president tell MBS that he directly blamed him for the killing of journalist Jamal Khashoggi during their discussion in Jeddah on July 15. “I didn’t hear that particular phrase,” al-Jubeir told Fox News correspondent Alex Hogan in an interview on July 16. “The president mentioned that the US is committed to human rights because since the founding fathers wrote the constitution and he also made the point that American presidents – this is part of the agenda of every American president.” Upon returning to the White House early on July 17 after his four-day Middle East trip, Biden was asked by reporters if al-Jubeir was telling the truth in recounting his exchange with MBS. Biden pointedly replied: “No.” Biden, who visited Saudi Arabia, Israel and the occupied West Bank in his first trip to the region as US president, previously told reporters he brought up Khashoggi’s killing at the top of his initial meeting with the Saudi crown prince. He said he “indicated” to MBS that he held him “personally responsible” for the 2018 killing. He added that MBS repeatedly denied responsibility during their meeting. Click here to read…

Amid Russia-Ukraine war, Putin to visit Iran for Syria talks

As Russia’s war on Ukraine grinds on, President Vladimir Putin will travel to Iran next week for a Syria summit with his Iranian counterpart Ebrahim Raisi and Turkey’s Recep Tayyip Erdogan, the Kremlin has announced. “The president’s visit to Tehran is being planned for July 19,” Kremlin spokesman Dmitry Peskov said on July 12. He added the trio would meet for peace talks on Syria. Russia, Turkey and Iran have in recent years been holding talks as part of the so-called “Astana peace process” to end more than 11 years of conflict in the Middle Eastern country. Russia and Iran are the key military and political backers of Syrian President Bashar al-Assad, while Turkey has provided military assistance to the Free Syrian Army and other rebel groups still fighting against al-Assad’s forces in the northwest. The foreign trip marks the Kremlin chief’s second since he sent troops into Ukraine in late February; he visited Tajikistan in late June. Russia and Iran hold close ties, while Turkey has attempted to act as a mediator during the Ukraine conflict. July 12’s announcement comes after the White House said on July 11 that it believed Moscow was turning to Iran to provide it with “hundreds” of drones, including those capable of carrying weapons, for use in Ukraine. Click here to read…

Health
WHO declares Marburg outbreak in Ghana, after first two cases of deadly Ebola-like virus reported

Two cases of the deadly Marburg virus have been identified in Ghana, the first time the Ebola-like disease has been found in the West African nation, health authorities announced on Sunday. Earlier in the month, blood samples taken from two people in the southern Ashanti region suggested the Marburg virus. The samples were sent to the Pasteur Institute in Senegal which confirmed the diagnosis, the Ghana Health Service (GHS) said. “This is the first time Ghana has confirmed Marburg Virus Disease,” said GHS head Patrick Kuma-Aboagye said in a statement. No treatment or vaccine exists for Marburg, which is almost as deadly as Ebola. Its symptoms include high fever as well as internal and external bleeding. A total of 98 people identified as contact cases are currently under quarantine, the GHS statement said, noting that no other cases of Marburg had yet been detected in Ghana. The World Health Organization (WHO) said Guinea had confirmed a single case in an outbreak declared over in September 2021. Previous outbreaks and sporadic cases of Marburg in Africa have been reported in Angola, the Democratic Republic of the Congo, Kenya, South Africa and Uganda, according to the World Health Organization. Click here to read…

China makes tweaks, but tough COVID policy still drags on economy

China has been tweaking its stringent COVID curbs but shows no sign of backing off from its “dynamic zero” policy and has lagged in vaccination efforts that would enable it to do so, casting a heavy shadow over the world’s second-largest economy. The absence of a roadmap out of zero-COVID and expectations that it will persist well into 2023 leaves residents and businesses facing a prolonged period of uncertainty. Recent scattered COVID flare-ups, the imposition of lockdowns in some cities and the arrival of the highly contagious BA.5 variant have added to those worries. On July 15, China is expected to report that gross domestic product (GDP) grew just 1 percent in the second quarter, with full year growth forecast at 4 percent, according to a Reuters poll – far short of Beijing’s official target of around 5.5 percent for 2022. In addition to a sharp lockdown-induced slowdown, growth has been weighed down by a sputtering property market and an uncertain global outlook. This week, Shanghai’s 25 million people were subject to more mandatory city-wide testing, and fear of tougher measures or getting caught up in China’s zero-COVID bureaucracy continues to exact an economic toll, including on consumption and jobs. Nomura estimated 31 cities were implementing full or partial lockdowns as of July 11, affecting nearly 250 million people in regions accounting for a quarter of China’s GDP. As the rest of the world tries to coexist with COVID, China points to the lives saved by its tough measures. Click here to read…

China: Daily Scan, June 28, 2022

Chinese vice premier meets exemplary groups, individuals of government offices administration: Xinhuanet
June 27, 2022

Chinese Vice Premier Han Zheng on Monday met with exemplary groups and individuals working in government offices administration. Han, also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, extended his congratulations to the honored ones and greetings to those working in government offices administration on behalf of the CPC Central Committee and the State CouncilClick here to read…

Over 17,000 to be relocated in Tibet for better life, ecological conservation: Xinhuanet
June 27, 2022

A total of 17,555 people will be relocated away from high-altitude places in Nagqu City, southwest China’s Tibet Autonomous Region, thanks to a local program to improve people’s living and protect the plateau region’s fragile ecosystem. Click here to read…

China punishes 11,299 officials for violating frugality rules in May: Xinhuanet
June 27, 2022

A total of 11,299 Chinese officials were punished in May for violating frugality rules, said the top anti-graft body Monday. The officials were involved in 7,778 cases, said the Communist Party of China (CPC) Central Commission for Discipline Inspection and the National Supervisory Commission in a statement. Click here to read…

CCG cracks major cross-border drug smuggling case in Fujian: China Military
June 27, 2022

Recently, a large-scale cross-border drug smuggling case was busted by the China Coast Guard (CCG) forces in East China’s Fujian Province, with seven suspects arrested, about 600 kg of the ketamine seized, and one ship involved detained at the scene. Click here to read…

6-month-long nationwide campaign launched to crack down on internet water army: Global Times
June 27, 2022

A six-month-long nationwide campaign was launched by the Bureau of Network Security Protection under the Ministry of Public Security on Sunday to crack down on internet water armies, who have been attempting to control or disrupt online public opinions through releasing fake and harmful information. Click here to read…

China promotes green, intelligent transformation of its shipbuilding industry: People’s Daily
June 27, 2022

China has been promoting the green and smart transformation of its shipbuilding industry by replacing traditional fuel with clean energy and applying intelligent systems to various kinds of vessels. The “Yangtze River Three Gorges 1,” the world’s largest electric cruiser with the largest battery capacity, has been used for Yangtze River sightseeing trips near Yichang city, in central China’s Hubei Province. Click here to read…

China vows timely policy measures to cope with economic risks: Reuters
June 28, 2022

China will roll out tools in its policy reserve in a timely way to cope with more economic challenges, as COVID-19 outbreaks and risks from the Ukraine crisis pose a threat to employment and price stability, a state planner official said on Tuesday. Click here to read…

China extends anti-dumping tariffs on EU, UK steel fasteners imports:
Reuters
June 28, 2022

China’s commerce ministry said on Tuesday it would extend anti-dumping tariffs on certain steel fasteners imported from the European Union and United Kingdom for five years. The anti-dumping tariffs will be imposed from June 29, the ministry said in a statement. Click here to read…

Chinese FM talks with Afghan acting FM over phone: Xinhuanet
June 28, 2022

Chinese State Councilor and Foreign Minister Wang Yi on Monday held a phone conversation with Acting Foreign Minister of the Afghan Interim Government Amir Khan Muttaqi. In his message, Wang once again expressed sincere condolences to Afghanistan over a recent earthquake disaster, and emphasized that as a friendly neighbor and sincere friend of Afghanistan, the Chinese side empathizes with the Afghan people for the difficulties they are facing. Click here to read…

New rules on internet accounts to take effect in Aug: China Daily
June 28, 2722

A new regulation released by the country’s top internet watchdog on Monday calls for better management of user accounts to safeguard national security and the public interest. Internet service providers have the obligation to verify the identity of users and show their IP addresses, according to the regulation on the management of internet user accounts, released by the Cyberspace Administration of China. Click here to read…

Local govts step up to boost night economy: China Daily
June 28, 2022

Tens of thousands of people crowded a culture and tourism area close to the Yangtze River in Wuhu, Anhui province, for an outdoor concert on Saturday night. After the concert ended at around 9:30 pm, the night seemed to have just begun in Wuhu Old Town Block. Click here to read…

Shenzhen bans drones and small aircraft during celebrations on Hong Kong SAR’s 25th anniversary: Global Times
June 28, 2022

To ensure safety of the upcoming celebrations on 25th anniversary of Hong Kong’s return to the motherland, Shenzhen has banned drones and other small aircraft in the city for six days, the local public security bureau said Monday. Click here to read…

China: Daily Scan, December 30, 2021

Beijing raises NEV quota in 2022 new car plate allocation: Xinhuanet
December 29, 2021

Beijing Municipality will raise the quota of new-energy vehicles (NEVs) in the new car license plate allocation next year, authorities announced Wednesday. The city will allocate 100,000 new car plates in 2022, and the quota for NEVs will be increased from 60,000 to 70,000, according to the municipal office for car quota allocation management. Click here to read…

China unveils five-year plan to boost raw materials industry: Xinhuanet
December 29, 2021

Chinese authorities on Wednesday unveiled a plan to facilitate the development of the country’s raw materials industry during the 14th Five-Year Plan period (2021-2025). By 2025, a new development pattern for China’s raw materials sector that features higher quality, better profitability and distribution, low carbon, and more security will take shape, said the plan. It was issued jointly by the Ministry of Industry and Information Technology and two other government bodies. Click here to read…

Former senior provincial official indicted for graft, sheltering mafia-like gangs: Xinhuanet
December 29, 2021

Wang Like, a former senior Party official in east China’s Jiangsu Province, has been indicted on charges of taking and offering bribes, harboring and conniving mafia-like organizations, and forging identity documents, the Supreme People’s Procuratorate (SPP) said Wednesday. Click here to read…

Egypt to join BRICS New Development Bank: People’s Daily
December 30, 2021

The BRICS New Development Bank (NDB) announced Wednesday that it will add Egypt as its new member. “We are delighted to welcome Egypt into NDB’s family. We look forward to supporting its investment needs in infrastructure and sustainable development,” said Marcos Troyjo, president of the NDB. Click here to read…

China, Russia to sign new 5-year space cooperation program, build intl lunar station by 2035: Global Times
December 29, 2021

China and Russia will sign a new space Cooperation Program for 2023-2027 next year, which will include a plan to create an open and inclusive International Lunar Research Station (ILRS) by 2035, Russia’s national space agency Roscosmos told the Global Times in an exclusive interviewClick here to read…

China standardizes names of 15 more places in Zangnan based on sovereignty and history: Global Times
December 30, 2021

China’s Ministry of Civil Affairs announced on Wednesday that it had standardized in Chinese characters, Tibetan and Roman alphabet the names of 15 places in Zangnan (the southern part of China’s Xizang), in accordance with regulations on geographical names issued by the State Council. Click here to read…

Chinese customs fully prepares for the implementation of RCEP: Global Times
December 29, 2021

Chinese customs said it has fully prepared for the implementation of the Regional Comprehensive Economic Partnership (RCEP), days ahead of the formal implementation for the largest trade agreement. In terms of rules of origin and tariff concessions, the General Administration of Customs said on Wednesday that it has completed 38 specific tasks to ensure the full implementation of the rules of origin and the agreed tax rate, and established the shared information system of visa data and customs clearance data. Click here to read…

Afghan officials discuss digital currency with Chinese businessmen: Global Times
December 29, 2021

Amid a deepening financial crisis that is putting Afghanistan’s financial system on the brink of collapse, Afghan Taliban officials have approached Chinese businessmen and discussed topics concerning digital currency, a possible solution that some said could provide short-term relief to the capital crunch of the war-torn country, sources told the Global Times on WednesdayClick here to read…

China to speed up use of next-generation tech like 5G, AI in rare-earth industry: Global Times
December 29, 2021

A senior Chinese official on Wednesday called on rare-earth companies to accelerate their digital transformation and carry out mergers and reorganizations, as the country has moved swiftly to upgrade the crucial sector and build an efficient, robust industry cluster. The use of high technologies marked by 5G, artificial intelligence and the industrial internet should be integrated with the rare-earth industry to enhance production efficiency and product quality, Chang Guowu, an official from the Ministry of Industry and Information Technology (MIIT), said at a press conference in Beijing. Click here to read…

China’s jobseekers search for ‘stability’ as coronavirus and regulatory crackdowns take toll: South China Morning Post
December 30, 2021

Zhang Qijing left China for the United Kingdom last October to pursue a master’s degree she hoped would help her change career. Business at the inbound travel agency she worked for was decimated by pandemic travel restrictions and she wanted a fresh start. A higher degree would give her an edge in the labour market and help secure a more stable job as a public school teacher, she said. Pursuing further education seemed like an efficient way to wait out the pandemic too. Click here to read…

Tattoos targeted as Chinese authorities seek to set ‘good example’: Reuters
December 30, 2021

Chinese authorities have banned footballers from getting tattoos and instructed national team players who have been inked to remove or cover them up to set a “good example for society”. A growing number of high-profile Chinese players have been sporting tattoos, including international defender Zhang Linpeng, who has previously been told to cover up while appearing for both the national team and club side Guangzhou FC. Click here to read…

Global Developments and Analysis: Weekly Monitor, 04 October- 10 October

Economic

China’s housing bubble fuelled its spectacular growth, but is the country ready for a day of reckoning?

China’s indebted property developers are symptoms, rather than the cause, of its housing problem. The nation’s real estate boom, which started in 1999 when then premier Zhu Rongji privatised home ownership, is one of the most spectacular economic phenomena in recent history. It has profoundly changed China’s urban landscape and improved living standards for hundreds of millions of people. But it has also titled wealth towards the state and capital over labour, and, more importantly, changed the notion among many Chinese that wealth is built by saving, not borrowing. China’s property machine has been sustained by three key ingredients: a land supply system borrowed directly from Hong Kong, where the municipal government has a monopoly; an extraordinary monetary easing cycle where broad money supply has increased 20 times over the past two decades; and a nationwide zeal to invest household wealth into property, rather than other assets. It is no secret that authorities depend on revenue from land sales to property developers to meet operational costs. Chinese cities would be in a terrible state if these funds dried up. The banking system’s exposure to the property sector is another interesting point of debate. Click here to read…

China raises cap on electricity prices to tackle power shortage

China will take further steps to ensure sufficient electricity supplies for the coming winter and spring, including raising the cap on prices, China’s cabinet said in a statement after an executive meeting chaired by Premier Li Keqiang on Oct 09. The State Council also said it will prioritize winter coal and natural gas supplies to ensure people’s livelihoods in northern China, particularly residential heating in north-eastern provinces, according to the statement. The measures come as China grapples with large-scale power shortages that since September have affected 10 provinces, including Heilongjiang and Jiangsu. High coal prices — amid government-mandated cuts to coal production capacity and carbon-reduction measures — combined with a relatively low cap on electricity prices meant that power generators were selling below cost. This meant they cut power output at a time when an economic recovery is driving factories to consume a lot more electricity. In late September, China’s state planner, the National Development and Reform Commission (NDRC), urged miners and power companies to sign additional long-term contracts to guarantee the thermal coal supply. This week, dozens of coal mines in Inner Mongolia were told to boost their production by more than half. Click here to read…

EU Commission should buy gas on behalf of member states, Spanish PM suggests as solution to spiralling energy prices

Spain’s prime minister has proposed that the European Commission (EC) negotiate gas contracts on behalf of all EU member states in order to strengthen cooperation amid soaring gas prices on the global marketplace. Speaking on Oct 06, Prime Minister Pedro Sanchez proposed a novel solution to the spiralling cost of gas in Europe, suggesting the EU’s executive body could buy on its member states’ behalf. “The proposal our government is making is that the EU Commission negotiate on behalf of all 27 member states,” Sanchez told reporters after an EU summit held in Slovenia. “Then what we propose is a strengthened cooperation, in which the countries who want it can join and the Commission would negotiate.” Sanchez added that this proposal involved the EC negotiating in collaboration with private companies. The concept has been backed by Italy. Earlier on Oct 06, the EU said it would review the way the bloc’s power market is organized and consider a revamp of the regulations. On Oct 06, European gas prices reached record highs, rising sharply to above $1,900 per 1,000 cubic meters, equivalent to $186 per megawatt-hour in household terms. Click here to read…

Energy crunch: Qatar says LNG production ‘maxed out’

Qatar, the world’s largest seller of liquefied natural gas (LNG), told consumers it was powerless to cool energy prices as steelmakers in the United Kingdom said they could be forced to halt output in the face of soaring costs. The global rebound in economic activity after the easing of coronavirus lockdowns has laid bare a shortage of natural gas stocks and other fuel supplies, squeezing consumer budgets and causing blackouts in some countries. To keep factories open and homes heated, industry executives and governments are having to pay much more for energy and revert to coal and oil, the most polluting fossil fuels. As some generators switched to burning oil, crude futures jumped to multi-year highs on Oct 11, with analysts predicting that prices will stay strong.LNG prices, which sank to record lows at the height of pandemic lockdowns, have surged this year to record highs, but Qatar said it has no supplies available to calm the market. “We are maxed out, as far as we have given all our customers their due quantities,” said Qatar Minister of Energy Saad al-Kaabi. “I am unhappy about gas prices being high.”Across the globe, the high prices are pressuring governments and industry, which has warned of the risk of job losses and costs being passed on to customers and consumers. Click here to read…

Afghan food prices soar as imports from Pakistan squeezed

Food prices are spiralling in Afghanistan as the local currency plummets under selling pressure and imports from Pakistan decline steeply due to a U.S. dollar shortage that prevents traders making payments. Zia-ul-Haq Sarhadi, vice president of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry (PAJCCI), told Nikkei Asia that food shipments from Pakistan to Afghanistan have reduced to a trickle largely because of the Taliban limiting weekly bank withdrawals to $200 — about 20,000 Afghanis. According to Sarhadi, only cement shipments paid for before the Taliban returned to Kabul are crossing the border at Torkham, Pakistan’s northwest border post with Afghanistan. He told Nikkei that less than 200 trucks were coming across each day compared to more than 1,000 a few weeks ago. The Taliban’s withdrawal caps are meant to prevent a currency flight while the U.S. continues to block access to Afghanistan’s dollar reserves of around $9.5 billion in American banks. The IMF and the World Bank have also stopped dollar-denominated aid, which amounted to around 43% of gross domestic product (GDP) in 2020. Click here to read…

Hong Kong to build 1m homes near China border to speed integration

Hong Kong Chief Executive Carrie Lam has announced plans to create a new “metropolis” of up to 2.5 million people near the border with mainland China, looking to tie the former British colony closer to neighbouring cities to boost regional development and tackle a chronic housing shortage. In the fifth and final annual policy address of her term on Oct 06, Lam defended the national security law and political overhaul imposed by Beijing in the wake of widespread antigovernment protests in 2019, emphasizing the need to strengthen pride in and loyalty to China for Hong Kong’s long-term prosperity. The new “Northern Metropolis” would cover nearly 300 sq. km along the city’s border with Shenzhen. Envisaged as an international information and technology hub, it would include up to 926,000 apartments and a new rail link to Shenzhen’s Qianhai district. Beijing last month announced plans to expand the area of the Qianhai zone, where it has been experimenting with financial and other reforms, by eight times to boost integration with Hong Kong. Click here to read…

Pakistan and China unveil ambitious plan to develop Karachi coast

In an ambitious turn, Pakistan and China have agreed to develop the Karachi coast, possibly shifting away from Gwadar as the center stage of the Belt and Road project in Pakistan, following ongoing problems at the south-western province of Balochistan. A memorandum of understanding was signed for the Karachi Coastal Comprehensive Development Zone project during the recently held 10th Joint Cooperation Committee meeting of the China-Pakistan Economic Corridor, or CPEC, after a gap of almost two years. Based on details shared by Pakistan, China will invest $3.5 billion, separately confirmed by a Chinese foreign ministry spokesperson, in the project which includes adding new berths to Karachi port, developing a new fisheries port and a 640-hectare trade zone on the western backwater marshland of the Karachi Port Trust. The project also envisages building a harbor bridge connecting the port with the nearby Manora islands. Gwadar has proved to be a problematic area for Chinese investment. In August, a suicide bombing targeting a vehicle carrying Chinese nationals in the area killed two children and wounded three. Separatist militants have waged a long-running insurgency in Balochistan. Click here to read…

HSBC boss Noel Quinn: Complex geopolitical landscape a ‘fact of life’ for global banks

Navigating a complex geopolitical landscape that includes financial sanctions is a “fact of life” for international banks and one that can continue to be managed in today’s charged environment, according to Noel Quinn, the CEO of HSBC. There remains a need for financial institutions, such as HSBC that can act as bridge between East and West for commerce and trade, said Quinn in a wide-ranging keynote session at the Sibos 2021 conference. “Our clients still want to be international. They still have needs on a global basis and they’re asking us to help them with those global needs,” Quinn said. “My job is to help this organisation navigate those geopolitics, be very focused on helping our clients navigate their business model needs and remaining focused on the long term, not just the short term.” As Hong Kong’s biggest currency-issuing lender, London-based HSBC has found itself caught in the middle of rising tensions between China and the United States in the past three years, from the arrest of Huawei Technologies chief financial officer Meng Wanzhou to the implementation of a controversial national security law for Hong Kong last year. Click here to read…

China’s Xinjiang faces hidden risk from debt-heavy XPCC, with spending tipped to rise after US withdrawal from Afghanistan

Spending on public security and poverty reduction in China’s Xinjiang Uygur autonomous region is expected to increase after the US withdrawal from Afghanistan, but indebted state-owned enterprises (SOEs), including the sprawling Xinjiang Production and Construction Corps (XPCC), are already putting pressure on local government finances. Washington has targeted Chinese officials and Xinjiang-based companies, including XPCC, for what it alleges are serious human rights abuses in the region – something Beijing has repeatedly denied. XPCC is at the heart of international tensions over Xinjiang because of its influential position in the local economy and its central role in ensuring social stability and security. Established in 1954, XPCC – which is also known as “Bingtuan” – operates as a business and paramilitary entity. Today, it controls at least 20 per cent of Xinjiang’s gross domestic product (GDP), with cotton one of its most important goods, and has about 2.7 million members, accounting for 12 per cent of the region’s total population. But the organisation’s massive spending on projects ranging from poverty alleviation and surveillance to re-education camps to counter “religious extremism” make it a potential contingent risk for the Xinjiang government, some observers say. Click here to read…

Japan’s new PM Fumio Kishida defends pro-nuclear stance in parliamentary debut

Japan’s new Prime Minister Fumio Kishida on Oct 11 defended his pronuclear energy policies, saying that restarting nuclear power plants mothballed since the 2011 Fukushima disaster was vital. Energy became a key issue during the ruling Liberal Democratic Party’s (LDP) recent leadership race, during which Kishida beat Taro Kono, a former vaccine minister who had spoken out against nuclear energy, to become prime minister. “It’s crucial that we restart nuclear power plants,” Kishida said as he faced opposition questions in parliament for the first time since becoming prime minister last week. Kishida was responding to questions from Yukio Edano, leader of the main opposition Constitutional Democratic Party of Japan (CDPJ), on the government’s policy for sustainable energy and if nuclear power would be part of the plan. Nuclear energy has been contentious in Japan, especially since a 2011 earthquake off the coast triggered a tsunami that smashed into a nuclear power plant in the Fukushima region north of Tokyo, causing one of the world’s worst nuclear accidents. All of Japan’s nuclear power plants were shut down after the disaster, which highlighted failings in regulation and oversight. While some reactors have been coming back on stream, most remain shut. Click here to read…

Global tax deal seeks to end havens, criticized for ‘no teeth’

A group of 136 countries on Oct 08 set a minimum global tax rate of 15% for big companies and sought to make it harder for them to avoid taxation in a landmark deal that U.S. President Joe Biden said levelled the playing field. The deal aims to end a four-decade-long “race to the bottom” by setting a floor for countries that have sought to attract investment and jobs by taxing multinational companies lightly, effectively allowing them to shop around for low tax rates. The 15% floor agreed to is, however, well below a corporate tax rate which averages around 23.5% in industrialized countries. Some developing countries that had wanted a higher rate said their interests had been sidelined to accommodate richer nations, while NGOs criticized the deal’s many exemptions, with Oxfam saying it effectively had “no teeth.” The accord also promises to be a tough sell in Washington, where a group of Republican U.S. senators sent a letter to Treasury Secretary Janet Yellen saying they had serious concerns. Negotiations have been going on for four years, with the deal finally agreed when Ireland, Estonia and Hungary dropped their opposition and signed up. Click here to read…

Thanks to sanctions, Iran loses foreign investors

As the Raisi administration continues to refuse to chart a clear path for the resumption of the stalled nuclear talks with world powers in Vienna, and the removal of the daunting sanctions on Iran remain improbable, things are getting worse for the average Iranian. The naked truth about the oil-rich country is the unchecked entrenchment of poverty has been worsened by the government’s soaring budget deficit and the withdrawal of foreign investors who once helped prop up different sectors of the economy. In 2019, and in a bid to incentivize the influx of foreign capital and resources into Iran, the moderate Rouhani administration proposed an initiative whereby international investors lending credit to Iranian banks and financial institutions worth $250,000 or more or investing a similar amount in Iran’s infrastructural and industrial projects, would be granted five-year residency permits as well as other educational, healthcare, employment benefits and public services. Now, in a rare admission of the failure of the ambitious plan, Iran’s deputy minister of interior Babak Dinparast revealed in late September that after more than two years, “not even a single” foreign investor has signed up to benefit from the scheme, and that it hasn’t paid off as first thought. Click here to read…

New plan to bolster China’s standard-setting ability in crucial technologies

China aims to boost standard-setting in many crucial technological sectors, including high-speed rail, new-energy and smart vehicles and robots, as part of efforts to bolster innovation, opening-up and high-quality growth, according to a development plan jointly issued by the Central Committee of the Communist Party of China and the State Council, the cabinet, released on Oct 10. Analysts said the plan is conducive to China’s strategy of high-quality development, and it will make China’s standardization work more internationalized. It will also pave the way for a greater role for Chinese companies in the global markets once the issue of differences among standards is ironed out, they said. By 2035, China’s standardization work will be an open and integrated system driven by market forces and guided by the government, with full participation by companies and the public. The development plan calls for scientific and research fruits in 50 percent of all projects concerned with shared key technologies and applied science and technology, and for the time required for setting national standards to be reduced to under 18 months from currently two years. Click here to read…

Economics Nobel honours ‘natural experiments’, from minimum wage to migration

Economists David Card, Joshua Angrist and Guido Imbens won the 2021 Nobel economics prize on Oct 11 for pioneering “natural experiments” to show real-world economic impacts in areas from minimum wage increases in the U.S. fast-food sector to migration from Castro-era Cuba. Unlike in medicine or other sciences, economists cannot conduct rigidly controlled clinical trials. Instead, natural experiments use real-life situations to study impacts on the world, an approach that has spread to other social sciences. “Their research has substantially improved our ability to answer key causal questions, which has been of great benefit to society,” says Peter Fredriksson, chair of the Economic Sciences Prize Committee. Past Nobel Economics prizes have been dominated by U.S. institutions and this was no exception. Canada-born Card currently works at the University of California, Berkeley; Angrist, a dual U.S. and Israeli citizen, at Massachusetts Institute of Technology; and Dutch-born Imbens at Stanford University. Click here to read…

Strategic

13th round of India-China Corps Commander Level Meeting

The 13th round of India-China Corps Commander Level Meeting was held at Chushul-Moldo border meeting point on 10th October 2021. During the meeting the discussions between the two sides focussed on resolution of the remaining issues along the LAC in Eastern Ladakh. The Indian side pointed out that the situation along the LAC had been caused by unilateral attempts of Chinese side to alter the status quo and in violation of the bilateral agreements. It was therefore necessary that the Chinese side take appropriate steps in the remaining areas so as to restore peace and tranquillity along the LAC in the Western Sector. This would also be in accord with the guidance provided by the two Foreign Ministers in their recent meeting in Dushanbe where they had agreed that the two sides should resolve the remaining issues at the earliest. The Indian side emphasised such resolution of the remaining areas would facilitate progress in the bilateral relations. During the meeting, the Indian side therefore made constructive suggestions for resolving the remaining areas, but the Chinese side was not agreeable and also could not provide any forward-looking proposals. Click here to read…

Tsai says Taiwan will not bow to Chinese pressure

President Tsai Ing-wen said Oct 10 that Taiwan won’t bow to pressure to give up its sovereignty, a day after Chinese President Xi Jinping vowed to bring the democratic island under Beijing’s control. “The more we achieve, the greater the pressure we face from China,” Tsai said during a national holiday speech to an audience of thousands outside the presidential building in Taipei. “We hope for an easing of cross-strait relations and will not act rashly, but there should be absolutely no illusions that the Taiwanese people will bow to pressure.” Taiwan faces a growing threat from China, but the world is waking up to the island’s importance as a democratic partner on the front lines of Beijing’s authoritarian expansion, Tsai said. She pointed to the recent and ongoing dismantling of democracy and civil liberties in Hong Kong as proof of Beijing’s threat to free societies. “I want to remind all my fellow citizens that we do not have the privilege of letting down our guard,” Tsai said. Later in the day, China’s Taiwan Affairs Office denounced Tsai’s speech, saying it incited confrontation and distorted facts, according to Reuters. Click here to read…

French senators meet with Taiwan’s Tsai at tense time

A group of French senators visiting Taiwan as part of a regular parliamentary exchange met with President Tsai Ing-wen on Oct 07 morning during a trip that comes in a particularly tense moment between Taiwan and China.Tsai spoke briefly before their meeting, giving France’s former defense minister, Alain Richard, the Order of Propitious Clouds, a distinction recognizing “his contributions to Taiwan-France relations.” She thanked him for leading an effort in the French Senate to pass a resolution in support of allowing Taiwan to participate in international organizations like the World Health Organization.China tried to discourage the French senators’ visit, with its embassy in France saying ahead of the trip that it would undermine China-France relations.Richard along with the three other senators also plan to meet Taiwanese economic and health officials and the Mainland Affairs Council on their five-day visit. This is the third visit to Taiwan for Richard, a former French defense minister, who previously visited Taiwan in 2015 and 2018. He heads the Taiwan Friendship group in the French Senate.The senators’ trip is a recurrent one that French lawmakers make as part of the Taiwan Friendship group; especially as new senators are elected every three years. Click here to read…

U.S. does not deny involvement in training Taiwan troops

The U.S. has not denied reports that it has sent troops to train military forces in Taiwan for at least a year, working to bolster the island’s ability to defend itself amid growing concerns of an armed conflict with China.Marines and a special operations unit have been training ground and maritime forces there on rotational deployments, the Wall Street Journal reported Oct 07. A Pentagon spokesman did not deny the training of Taiwan’s forces when asked, declining to comment on “specific operations, engagements or training.”China “has stepped up efforts to intimidate and pressure Taiwan, including increasing military activities conducted in the vicinity of Taiwan … which we believe are destabilizing and increase the risk of miscalculation,” the spokesman said. This move toward signalling U.S. involvement in Taiwan’s defense seems intended to curb recent provocations by China that have ratcheted up tensions around the Taiwan Strait. “My understanding is that the United States has been doing training like this for many years. We just don’t publicize it,” a former senior U.S. military official said. The Pentagon had dismissed similar reports last November of planned exercises involving U.S. Marines in southern Taiwan as “inaccurate.” Click here to read…

Malaysia summons Chinese ambassador over South China Sea vessels

The Malaysian government summoned China’s ambassador to formally protest alleged encroachment into its South China Sea waters by Chinese vessels, the Ministry of Foreign Affairs announced on Oct 05. Despite overt displays of warm ties earlier this year, Putrajaya registered its strong objection in a meeting with Ambassador Ouyang Yujing on Oct 04. The ministry said it had detected the presence of Chinese vessels, including a survey ship, in Malaysia’s exclusive economic zone off the coasts of its Bornean states. “Malaysia’s consistent position and actions are based on international law, in defense of our sovereignty and sovereign rights in our waters,” the ministry said in a statement. “In determining Malaysia’s position and course of action with regard to the South China Sea issue, which is complex and involves inter-state relations, Malaysia’s national interests will remain of paramount importance.” The flare-up in the dispute takes the new Malaysian government of Prime Minister Ismail Sabri Yaakob into difficult territory. While standing by its maritime rights, Kuala Lumpur has sought positive relations with China of late, including in the fight against COVID-19. Click here to read…

CIA creates working group on China as threats keep rising

The CIA said Oct 07 it will create a top-level working group on China as part of a broad U.S. government effort focused on countering Beijing’s influence.The group will become one of fewer than a dozen mission centres operated by the CIA, with weekly director-level meetings intended to drive the agency’s strategy toward China. China is an especially difficult challenge for the U.S. intelligence community given the insularity of its Communist Party leadership, its large military and security services and its development in advanced technologies that can counter spying. In a statement Oct 07, CIA Director William Burns called the Chinese government “the most important geopolitical threat we face in the 21st century.” “Throughout our history, CIA has stepped up to meet whatever challenges come our way,” Burns said. “And now facing our toughest geopolitical test in a new era of great power rivalry, CIA will be at the forefront of this effort.”As part of agency reorganization, the CIA will fold mission centres on Iran and North Korea into existing groups covering each country’s respective region. Both country-specific mission centres were created during President Donald Trump’s administration. Click here to read…

Biden and Xi explore ‘recoupling’ as advisers meet in Zurich

U.S. President Joe Biden’s national security adviser Jake Sullivan will travel to Switzerland to meet China’s top diplomat Yang Jiechi, the White House announced Oct 05, a sign that the two sides are seeking to lower the temperature after years of rising tensions. Bloomberg reported Oct 05 that Chinese diplomats have informed their G-20 counterparts that Xi does not currently plan to attend the summit in Italy. But a potential trip to an African forum could provide an opening for a Biden-Xi Rome summit. China is preparing to hold the Forum on China-Africa Cooperation (FOCAC) in Senegal in the first week of November. Eight months into his presidency, and after a bruising exit from Afghanistan, Biden is seeking a new phase of “relentless diplomacy.” His trade representative Katherine Tai told the Washington think tank Center for Strategic and International Studies on Oct 05 that the administration will be looking for a “recoupling” with China rather than decoupling. At the Zurich meeting, the two sides “will follow up on President Biden’s Sept. 9 call with President Xi as we continue to seek to responsibly manage the competition between the United States and the People’s Republic of China,” the White House statement said. Click here to read…

As US returns to the UN Human Rights Council, it confronts an increasingly forceful China

The latest US effort to challenge China’s expanding global footprint will take place on Oct 06 when Washington is expected to return to the United Nations Human Rights Council at a time when Beijing is working overtime to blunt criticism over its crackdown in Xinjiang and revamp the UN in line with its world view. But Washington faces risks, added Limon, a former British diplomat at the council from 2006 to 2012. “China is now the biggest player in town, has exploited the vacuum, upped their game and introduced a lot of initiatives to try and give a Chinese flavour to things.” The US left the council in 2018 under former president Donald Trump, a vocal sceptic of multilateral organisations. The Biden administration has prioritised returning, arguing that democracies must confront authoritarian states at the UN and elsewhere in concert with partners and allies. In theory, nations on the 47-seat Geneva-based council are elected. In reality, seats are often determined in advance within geographical blocs, frequently involving “back room deals, closed slates, and secret ballots”, according to a Brookings Institution report. The 18 seats up for election on Wednesday are uncontested, and Italy has relinquished its seat for the US. Click here to read…

Taliban calls for improved ‘diplomatic relations’ with US after ‘candid talks’ in Doha, welcomes humanitarian aid

The Taliban has said that the US agreed to provide humanitarian assistance to Afghanistan, insisting it should come with no strings attached after talks in Qatar. Washington called the meeting “candid” and “professional. In a statement released in the wake of two-day talks with US officials in Doha, Qatar, the Taliban said that the US promised to “give humanitarian assistance to Afghans” and “provide facilities for other humanitarian organizations to deliver aid.” The US delegation and representatives of the Taliban discussed “all relevant issues” during the meeting that took place over the weekend, the group said, without elaborating further. Despite US President Joe Biden’s administration refusal to recognize the Taliban as Afghanistan’s legitimate government, the group said that it was ready to mend relations with Washington. The US State Department struck a similarly optimistic tone, describing the talks as “candid and professional,” but added that the US was not taking the Taliban at its word. In a statement that was short on detail, State Department spokesman Ned Price said that the “security and terrorism concerns,” the evacuation of stranded American citizens and allies, as well as women’s rights, dominated the agenda of the meeting. Click here to read…

U.S. F-35B jets used in test for MSDF’s future aircraft carrier

U.S. F-35B fighter jets took off from and landed on the Maritime Self-Defense Force’s destroyer Izumo in a test off the Shikoku region on Oct. 3, the Defense Ministry said Oct. 5.The ministry plans to convert the helicopter-carrying destroyer into an aircraft carrier, and the test was designed to check the heat-resistance of the renovated deck. The F-35B is a stealth fighter capable of short takeoffs and vertical landings. The ministry plans to deploy the aircraft to Air Self-Defense Force’s Nyutabaru Air Base in Miyazaki Prefecture. Defense Minister Nobuo Kishi revealed the test at an Oct. 5 news conference after the Cabinet meeting. It was the first time for F-35Bs to use an MSDF naval vessel for takeoffs and landings. The F-35Bs used in the test belong to the U.S. Marine Corps. “This will improve interoperability between Japan and the United States, leading to strengthened deterrence and responding abilities of the Japan-U.S. alliance,” Kishi said. At the end of 2018, the defense program outline and midterm defense program included plans to convert Izumo-type destroyers into virtual aircraft carriers to strengthen air defense on Japan’s Pacific side, where there are fewer airfields. Click here to read…

Muqtada al-Sadr set to win Iraq vote, former PM al-Maliki second

Shia Muslim religious leader Muqtada al-Sadr’s party is set to be the biggest winner in Iraq’s parliamentary election, increasing the number of seats he holds, according to initial results, officials and a spokesperson for the Sadrist Movement. Former Prime Minister Nouri al-Maliki looked set to have the next largest win among Shia parties, the initial results showed on Oct 11. Iraq’s Shia groups have dominated governments and government formation since the US-led invasion of 2003 that toppled Sunni leader Saddam Hussein and catapulted the Shia majority and the Kurds to power. Oct 10’s election was held several months early, in response to mass protests in 2019 that toppled a government and showed widespread anger against political leaders whom many Iraqis said have enriched themselves at the expense of the country. But a record low turnout of 41 percent suggested that an election billed as an opportunity to wrest control from the ruling elite would do little to dislodge sectarian religious parties in power since 2003. Click here to read…

‘Looming disaster’: Oil ship leak threatens millions of Yemenis

A team of researchers from Stanford University, Harvard University, and UC Berkeley released the findings of their models on the impact of an oil spill from the FSO Safer in a paper published on Oct 11 in the Nature Sustainability journal. The researchers stressed urgent action was required to stop a “looming disaster” that would affect an estimated nine million people who would be without drinking water, and shut down Yemen’s main ports, thereby worsening the country’s humanitarian crisis. About 68 percent of humanitarian aid to Yemen enters through the ports of Hodeidah and Salif, which lie near to the stricken Safer, and more than half of Yemen’s population depends on humanitarian aid. “The spill and its potentially disastrous impacts remain entirely preventable through offloading the oil,” the study said. FSO Safer has not been maintained since the start of the conflict in Yemen in 2015, and negotiations between the United Nations and Yemen’s Houthi rebels, who control the ship and the area of Yemen’s coast nearest to it, remain at a standstill.However, it also contains 1.1 million barrels of oil, an amount that is four times the amount spilled in the world’s most environmentally damaging oil spill – the 1989 Exxon Valdez disaster. Click here to read…

ASEAN ministers weigh excluding Myanmar junta leader from summit: Envoy

Southeast Asian countries are discussing not inviting the head of Myanmar’s junta to a summit this month, due to the military’s failure to make progress on an agreed roadmap to restore peace in the strife-torn country, a regional envoy said onOct 06. The junta’s inaction on a five-point plan it agreed in April with the Association of Southeast Asian Nations (ASEAN) was “tantamount to backtracking”, Erywan Yusof, the bloc’s special envoy to Myanmar, told a news conference. Erywan, the second foreign minister of ASEAN chair Brunei, said the junta had not directly responded to his requests to meet detained former leader Aung San Suu Kyi, whose government was overthrown in a Feb 1 coup led by military chief Min Aung Hlaing. Myanmar has been in turmoil since the coup, which ended a decade of tentative democracy and prompted outrage at home and abroad at the return of military rule. Click here to read…

Germany: SPD, Greens and FDP resume coalition talks after tight election

Germany’s election-winning Social Democratic Party (SPD) kicked off a second round of “in-depth exploratory coalition talks” with the third-place Greens and fourth-place Free Democratic Party (FDP) in Berlin on Oct 11 morning. The three parties previously met Oct 07 and scheduled 10 hours of negotiations for Oct 11. Four more hours of talks have been scheduled for Oct 12 morning, before SPD chancellor candidate Olaf Scholz departs for a meeting of G20 finance ministers in Washington, DC. More talks between the leaders of the so-called “traffic light” coalition parties — a reference to their party colours — are set to take place on Oct 15 after Scholz returns to Berlin from the United States. No statements on the progress of the talks were expected on Oct 11, with all parties underscoring the need for discretion. Party representatives said they hope to present initial results toward the end of the week. Thus far, none of the negotiators have given details as to the state of talks, only that there are differences of opinion in a number of areas, the two most fundamental being finance and the environment. Click here to read…

Germany, France and Russia may hold summit on Ukraine conflict

German Chancellor Angela Merkel and French President Emmanuel Macron spoke with Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin by phone on Oct 11 regarding a solution to the ongoing conflict in eastern Ukraine. Zelenskyy’s office said the four countries may soon meet for a summit on the conflict, in what is known as the Normandy format. The German and French governments have previously mediated between Russia and Ukraine as part of this diplomatic arrangement. The Kremlin also called for a summit on the conflict but did not mention whether Ukrainian officials would take part in the meetings. The Russian government said European leaders have asked their respective foreign ministers to “intensify their contacts” and work on the “difficult” situation in Ukraine. A concrete date for the meeting has not yet been determined, though Merkel spokesperson Steffen Seibert did confirm plans for the gathering. Merkel visited Ukraine and Russia in August and expressed hope that peace negotiations between Ukraine and pro-Russia separatists would continue after she left office. Click here to read…

Medical

China PCR test orders soared before first confirmed COVID case

Purchases of PCR tests in China’s Hubei Province surged months before the first official reports of a novel coronavirus case there according to a report by Australia-based Cybersecurity Company Internet 2.0. About 67.4 million yuan ($10.5 million at current rates) was spent on PCR tests in Hubei during 2019, nearly double the 2018 total, with the upswing starting in May, according to the report. Internet 2.0 collected and analyzed data from a website that aggregates information on public procurement bids in China. The analysis team consists of former officials from intelligence agencies in the U.S., the U.K., Australia, and other countries. The report casts further doubt on China’s official line about the origins of the virus, a topic that has fuelled tensions between Beijing and Washington. China’s foreign ministry has disputed the report’s findings. The report alleges the unusual uptick likely signals awareness of a new disease spreading in and around Wuhan, the capital of Hubei Province.Orders doubled from universities, jumped fivefold from the Chinese Center for Disease Control and Prevention and surged tenfold from animal testing bureaus. Purchases from hospitals declined by more than 10%. Click here to read…

Over 50 million people suffered from major depressive disorders in 2020 due to Covid-19 pandemic, new global study estimates

The coronavirus pandemic added to the burden of depressive and anxiety disorders in over 200 countries last year, a new study shows, saying the impact of Covid-19 has increased the number of depressed people by nearly a third. While “mental disorders were leading causes of the global health-related burden” even before the pandemic, the spread of the dreaded virus and subsequent restrictive measures to fight the disease have considerably added to the load, a study published in The Lancet medical journal on Oct 08 suggests. An extra 53.2 million cases — an increase of 27.6% — of major depressive disorders and 76.2 million cases of anxiety disorders have added to the number of people suffering from mental health issues, according to researchers. To measure the pandemic’s impact on any given area, the team analyzed daily SARS-CoV-2 infection rates, restrictions on human mobility, and daily excess mortality rates. It turned out that the locations hit hardest based on the first two criteria corresponded to those with a documented spike in depressive and anxiety disorders, with the study concluding that increasing infections and decreasing mobility are “significantly associated” with worsening mental health. Click here to read…

WHO backs Covid-19 booster jab for people with weak immune systems

The World Health Organization has recommended booster shots for people with weak immune systems as they are less likely to respond adequately to the standard course of vaccinations. On Oct 11, the World Health Organization’s (WHO) vaccine advisory group said that people with compromised immune systems should be given a Covid-19 booster shot. “Moderately and severely immune-compromised persons should be offered an additional dose,” the WHO’s Strategic Advisory Group of Experts on Immunization said. “These individuals are less likely to respond adequately to vaccination following a standard primary vaccine series and are at high risk of severe Covid-19,” they added. The WHO has previously warned developed nations against administering booster shots, claiming that they should be focusing on sharing their vaccines with poorer nations around the world to ensure a larger proportion of the global population is inoculated. Last week, the European Medicines Agency (EMA) recommended that people with a weak immune system receive a third dose of either the Pfizer or Moderna Covid-19 vaccine. Click here to read…