Economic

Belt and Road sit-in at Pakistan port shows no sign of ending

A massive sit-in protest has engulfed the Pakistani city of Gwadar, home to the country’s flagship Belt and Road Initiative port project in the country, severely damaging prospects for more Chinese investment in Gwadar, experts say. The monthlong sit-in, led by Maulana Hidayat ur Rehman, a local political leader, has drawn thousands of people to the Give Rights to Gwadar Movement. The demonstrators, many of them women, are camped at the entrance to the Chinese-controlled port, where they listen to Rehman’s fiery speeches. The protest has generated headlines in Pakistan and touched off a debate in the media. The demonstrators are demanding an end to deep-sea fishing by trawlers in nearby waters, removal of security checkpoints in the city and freer trade with neighboring Iran. The port in Gwadar is the centerpiece of $50 billion in projects that make up the Pakistan portion of China’s Belt and Road Initiative, known locally as the China-Pakistan Economic Corridor (CPEC). Pakistan’s Prime Minister Imran Khan acknowledged the protests on Dec 13, tweeting, “I have taken notice of the very legitimate demands of the hardworking fishermen of Gwadar. Will be taking strong action against illegal fishing by trawlers & will also speak to [the chief minister of] Balochistan.” Click here to read…

Spotlight on trade gateway as India hosts talks with Central Asia

An India-backed project to transform an Iranian port into a trade gateway to Central Asia is expected to be high on the agenda as New Delhi hosts annual talks with countries from the region on Dec 19. The foreign ministers of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan will join the meeting, looking to push ahead with plans to energize trade and cooperation even as chaos in neighboring Afghanistan threatens to overshadow their economies. Analysts say India sees the meeting as a prime chance to promote trade to and from Central Asia through Iran’s Chabahar Port, which it has spent years helping to develop. India initially started discussions with Tehran on the port around 2003. But major progress came in 2016, when New Delhi announced during a visit to Iran’s capital by Prime Minister Narendra Modi that it would invest $500 million in a mega project to develop the site. The first phase of that was inaugurated in late 2017. Chabahar sits on the Gulf of Oman, to which India has direct maritime access. The port could also open opportunities for Indian companies in Iran itself and countries beyond Central Asia such as Russia. Under the first phase of the port contract, India is required to equip and operate two berths on a 10-year lease. Click here to read…

South Korea fights supply-chain risks with economic security team

South Korea is ramping up efforts to identify and mitigate supply-chain risks as shortages and restrictions at key exporters loom large over the country’s most important industries. To this end, South Korea will launch a center dedicated to economic security and diplomacy under its foreign ministry as early as February. The ministry in its 2022 budget has set aside 2.55 billion won ($2.16 million) for the center, slated initially to comprise about 10 researchers. Responding to “global shifts in supply chains,” the center will ascertain which parts and materials the country relies on imports and suggest ways for South Korea to diversify its supply, the ministry said. It will also place staff at South Korean diplomatic missions in strategically significant countries to conduct research. A similar team is expected to take shape under South Korea’s National Intelligence Service, South Korean news outlets report. It will work with the foreign ministry center to obtain and analyze timely information regarding countries that provide key materials. China accounts for 80% or more of South Korea’s supply in 1,850 materials, including rare earths. The U.S. comes next with 503, followed by Japan with 438. Click here to read…

Japan to require cyber defenses at infrastructure companies

Japan looks to require that companies in key infrastructure sectors such as finance, telecom and transport have plans for coping with cyberattacks, in response to a rise in such incidents globally. The government will urge corporate managers to take the lead in making organizational changes and devising these plans, in addition to ensuring that equipment is secure. Tokyo will spell out these steps by April as it makes the first full revision of the country’s key infrastructure action plan since 2017. The new rules, which focus on economic security, will take effect in fiscal 2022. Countries worldwide are scrambling to bolster defenses, viewing an all-hands-on-deck approach as necessary to deal with increasingly sophisticated attacks. Japan regards roughly 1,700 financial institutions as key infrastructure, according to official data as of the end of fiscal 2020. About 1,300 telecommunications operators, 22 railways and 29 utilities also would be covered by the new rules. The other sectors are airlines, airport operators, gas providers, government services, medical institutions, waterworks, logistics, chemicals, credit and oil. Japan’s cybersecurity plan previously has been part of government guidelines, but not legally binding. The anticipated revision will make the plan more effective, as measures would be clearly based on cybersecurity laws. Click here to read…

China’s central bank cuts benchmark LPR to 3.8% to bring down financing costs

China’s central bank decided to lower the benchmark loan prime rate (LPR) for the first time in 20 months, following a 50 basis-point universal cut in the reserve requirement ratio (RRR) on December 15, in line with the policy guideline released by the Central Economic Work Conference to accelerate economic growth in 2022. The one-year LPR was set at 3.8 percent compared with 3.85 percent over the past 20 months, while the five-year LPR remains unchanged at 4.65 percent, according to a statement released by the People’s Bank of China on Dec 20. The central bank decision to trim LPR will reduce the financing cost of Chinese enterprises in order to better stimulate their vitality and stave off downward economic pressure at the end of 2021, analysts said. China has kept the LPR unchanged for 20 months. The last time that the country adjusted the LPR was in April 2020, when the one-year LPR was cut from 4.05 percent to 3.85 percent. The LPR is a lending reference rate announced monthly by the central bank, taking in account of 18 commercial lenders which submit a monthly quotation by adding a premium over the Medium-term Lending Facility rate. It is also seen as the de facto benchmark reference rate for lending by Chinese banks. Click here to read…

With US-China trade deal set to expire, insiders reveal what’s really happening behind the scenes

With the phase-one trade deal between the world’s two largest economies due to expire at year’s end, Chinese scholars say supply-side issues are an impediment to China’s ability to meet purchasing targets. Multiple sources in China also told the Post that the two countries have engaged in phase-one discussions at various levels and with more frequency than has been publicly disclosed. And before the Xi-Biden summit in November, they say, the China side vowed to “buy whatever the US can ship over”. But for now, China continues to lag behind in its commitment to buy at least US$200 billion worth of additional American goods and services, relative to the 2017 level, including US$162.1 billion worth of physical goods. China’s total purchases of US goods from January 2020 to October 2021 reached only 60 per cent of the pledged total, according to a report by the Peterson Institute for International Economics (PIIE). Supply-chain disruptions, which intensified this year, have inevitably weighed on China’s imports of American goods, according to analysts. However, such disruptions have not been a determining factor, and neither is politics. For some products, China is more than willing to use its state power to stockpile amid volatility in the commodities market. But for others, China simply does not need, or is unwilling to buy, so much. Click here to read…

China and Russia to establish independent financial systems: Russian media

Russia and China have agreed to develop shared financial structures to deepen economic ties in a way that will not be affected by pressure of third countries following talks between the top leaders, Russian media outlet RT reported on Dec 15. The move will help both countries deter the threat of the US government’s long-arm jurisdiction based on the US dollar denominated international payment network, experts said. During the talks on Dec 15, top leaders of the two countries called for increasing the share of national currencies in mutual settlements and expanding cooperation to provide Russian and Chinese investors with access to stock markets, said Yuri Ushakov, Putin’s foreign policy advisor, according to RT. Ushakov said that “particular attention was paid to the need to intensify efforts to form an independent financial infrastructure to service trade operations between Russia and China.” “We mean creating an infrastructure that cannot be influenced by third countries,” Ushakov added. The move appears to be Russian’s response to a series threats that the US could push to disconnect Russia from the Brussels-based SWIFT financial system as a form of sanctions, Li Xin, Director of the Center for Russian and Central Asia Studies at the Shanghai Institutes for International Studies, told the Global Times on Dec 16. Click here to read…

ByteDance overtakes Ant Group as the world’s most valuable unicorn, Hurun rankings show

TikTok-owner ByteDance surpassed Ant Group to become the world’s largest unicorn, with start-ups from the US and China continuing to dominate the landscape, according to the latest Hurun Global Unicorn Index. This is despite Chinese companies coming under regulatory scrutiny both at home and in the US. Of the 1,058 unicorns – start-ups valued at more than US$1 billion – globally as of November this year, China had 301 start-ups, the most after the 487 in the US, according to this year’s index released by Shanghai-based Hurun Research Institute on Dec 20. Beijing-based ByteDance, whose flagship app TikTok has 1 billion monthly active users globally and is viewed as a serious challenger to Facebook, saw its valuation surge nearly 30 per cent to US$350 billion, from US$270 billion last year. Ant Group, an affiliate of Alibaba Group Holding and operator of online payment platform Alipay, was valued at US$150 billion. The top 10 largest global unicorns made up 25 per cent of the overall value of the world’s unicorns of US$3.7 trillion, according to the report. Four of them were from the US, three from China, while Australia, UK and Sweden had one each. Click here to read…

Warnings about DJI drones over spying expand US-China tech war beyond tech giants Huawei, Tencent and ByteDance

On Dec 16, the Biden administration blocked American investment in the company, a year after President Donald Trump prohibited it from sourcing US parts. Now, lawmakers from both parties are weighing a bill that would ban federal purchases of DJI drones, while a member of the Federal Communications Commission wants its products taken off the market in the US altogether. In many ways, DJI has become the poster child of a much wider national security threat: The Chinese government’s ability to obtain sensitive data on millions of Americans. Chinese President Xi Jinping has been far ahead of the West in realising the importance of data in gaining both an economic and military advantage, according to Matt Pottinger, a former deputy national security adviser in the Trump Administration. In the drone world, no firm is more prolific than DJI: The Chinese company commands more than 50 per cent of the US drone market, the FCC said in October, and research firm DroneAnalyst estimates it sells about 95 per cent of the unmanned aerial vehicles, or UAVs, priced between US$350 and US$2,000 targeted at consumers. Click here to read…

China’s Growing Access to Global Shipping Data Worries U.S.

China’s expanding grip on data about the world’s cargo flows is sparking concern in Washington and among industry officials that Beijing could exploit its logistics information for commercial or strategic advantage. Even cargo that never touches Chinese shores often still passes through Beijing’s globe-spanning logistics networks, including through sophisticated data systems that track shipments transiting ports located far from China. Control over the flow of goods and information about them gives Beijing privileged insight into world commerce and potentially the means to influence it, say cargo-industry officials. With ports clogged globally and shortages plaguing many industries, shipping data has become an enormously valuable commodity. Foremost among China’s cargo-data systems is Logink, a digital network that links shippers internationally and describes itself as a “one-stop logistics information service platform.” Logink says it draws on a mix of public databases and information input by more than 450,000 users in China and at dozens of giant ports world-wide, including across the Belt and Road initiative, China’s trillion-dollar international infrastructure project, and as part of what Beijing calls the Digital Silk Road. Logink’s international reach highlights a field critical to the world economy where the West lags behind China. Digitization of cargo data has been a dream of shippers for years. Click here to read…

Turkish, Qatari companies sign MoU to operate 5 Afghan airports

Turkish and Qatari companies inked a Memorandum of Understanding (MoU) to jointly run five airports in Afghanistan, including Kabul airport, Turkish Foreign Minister Mevlut Cavusoglu said on Dec 20. A Turkish delegation will travel to Doha on late Dec 20 to discuss the deal for operating the Afghan capital’s airport, and later they will head to Kabul together to have talks with the interim government of Afghanistan, Cavusoglu said at a press conference. “We will present joint proposals to the Afghanistan interim administration,” he noted. “If our conditions are met, we can operate the airports with Qatar. If the conditions are not met, there is no obligation for us to operate them,” he said. The Taliban group have taken control of Afghanistan after the U.S. forces withdrew from the country in summer. Click here to read…

Turkish lira hits turbulence as Erdogan cites Islam as reason for monetary policy

Turkey’s lira dropped further on Dec 20 before recovering slightly following a speech by Turkish President Recep Tayyip Erdogan on state television that cited Islam as a reason for not raising interest rates despite a rapidly depreciating currency and rampant inflation. Erdogan has repeatedly called on the central bank to lower borrowing costs despite an annual inflation rate of more than 20%. Mainstream economists believe the outcome of Erdogan’s Islamic-infused experiments with the currency could result in consumer inflation reaching 30% or higher in the months ahead. However, in his remarks on state television, Erdogan insisted it was Islam that guided his decision in demanding the central bank keep interest rates low. He also promised aid to exporters and increased government contributions to pension funds. “As a Muslim, I will continue doing what our religion tells us. This is the command,” Erdogan said. At one point in Dec 20’s trading, the lira dropped more than 11% against the dollar to around 18.40, an all-time low, before recovering some of those losses later in day. Many Turks are struggling to afford basic goods and services. Click here to read…

Strategic

China, Russia eye supercharged energy ties as shield against U.S.

Russia and China appear to be making headway toward a new gas pipeline that analysts say would help both countries hedge against growing tensions with the West. On Dec 15, presidents Vladimir Putin and Xi Jinping held a video call in which they presented a united front on issues ranging from the U.S.-led AUKUS partnership, the Biden administration’s recent Summit of Democracies and NATO’s expansion to the east. Yuri Ushakov, Putin’s foreign policy adviser, said the leaders also spoke about the Power of Siberia-2 project — a proposed mega-pipeline through Mongolia that could deliver up to 50 billion cu. meters of Russian gas to China annually. Just one day later, Putin hosted Mongolian President Ukhnaagiin Khurelsukh at the Kremlin to discuss the progress being made on Power of Siberia-2 among other issues. Although Moscow and Beijing still have to agree on pricing for Power of Siberia-2 before construction can begin, industry watchers predict that the long-awaited pipeline will not only significantly boost Russian gas exports to China — which has faced severe energy shortages this year — but also reduce Moscow’s dependence on European markets and Beijing’s reliance on maritime routes controlled by U.S. warships. Click here to read…

Kremlin: Xi supports Putin’s pursuit of guarantees from West

Chinese President Xi Jinping supported Russian President Vladimir Putin in his push to get Western security guarantees precluding NATO’s eastward expansion, the Kremlin said Dec 15 after the two leaders held a virtual summit. Putin and Xi spoke as Moscow faces heightened tensions with the West over a Russian troop buildup near Ukraine’s border. In recent weeks, Western nations engaged in diplomatic efforts to prevent a possible invasion of Ukraine. The Kremlin has denied harboring plans to storm its neighbor. Putin, meanwhile, demanded guarantees that NATO will not expand to Ukraine or deploy troops and weapons there. He told Xi on Dec 15 about “mounting threats to Russia’s national interests from the U.S. and the NATO bloc, which consistently move their military infrastructure close to the Russian borders,” Putin’s foreign affairs adviser, Yuri Ushakov, said. The Russian leader stressed the need to hold talks with NATO and the U.S. on legally binding security guarantees, according to Ushakov. Xi responded by saying he “understands Russia’s concerns and fully supports our initiative to work out these security guarantees for Russia,” Ushakov said. He said Moscow’s proposals have been passed on to U.S. Assistant Secretary of State for European and Eurasian Affairs Karen Donfried, who visited Moscow on Dec 15 and met with Russia’s deputy foreign minister, Sergei Ryabkov. Click here to read…

China welcomes US competition but is not afraid of confrontation, Wang Yi says

Beijing welcomes mutually beneficial cooperation and healthy competition with the United States but is not afraid of confrontation, Chinese Foreign Minister Wang Yi said. “China’s attitude is consistent and clear,” Wang said on Dec 20. “Dialogue is OK, but it should be equal; cooperation is welcome, but it should be reciprocal; competition is not harmful, but it should be healthy. [China] is not afraid of confrontation and will [persist] to the end.” The comments were made at a symposium in Beijing on China’s diplomacy, two weeks after the US hosted a democracy summit without China and announced a diplomatic boycott of the 2022 Winter Olympics in China over the country’s human rights record. Noting that 2022 would be 50 years since former US president Richard Nixon’s historic visit to China that broke the ice between the two countries, Wang said on Dec 20 that Beijing and Washington should again work to achieve a thaw. The speech outlined China’s diplomacy priorities for the next year, listing the Olympics as the top item and briefly covering Beijing’s plans for its ties with Russia and European nations before turning last to US-China relations. Click here to read…

UAE tells U.S. it will suspend F-35 talks following Huawei unease

The United Arab Emirates has informed the United States that it will suspend discussions to acquire F-35 fighter jets, a UAE official said on Dec 14, part of a $23 billion deal that also includes drones and other advanced munitions. The sale of 50 F-35 warplanes made by Lockheed Martin to the UAE had slowed amid concerns in Washington over Abu Dhabi’s relationship with China, including use of Huawei 5G technology in the country. “Technical requirements, sovereign operational restrictions, and cost/benefit analysis led to the re-assessment,” the UAE official said in a statement to Reuters that confirmed a report in the Wall Street Journal. “The U.S. remains the UAE’s preferred provider for advanced defense requirements and discussions for the F-35 may be re-opened in the future,” the official said, adding there were discussions to “address mutual defense security conditions for the acquisition”. A person briefed on the negotiations said for several months sticking points between the United States and the UAE revolved around how the stealthy jets can be deployed and how much of the sophisticated F-35 technology the Emiratis will be allowed to take advantage of. Click here to read…

Japan Foreign Ministry to create senior post on Taiwan

The Japanese Foreign Ministry plans to create a senior position dedicated to Taiwan-related issues in fiscal 2022, reflecting Tokyo’s concern over rising tensions between Beijing and Taipei. The senior coordinator for Taiwan affairs will work under the ministry’s First China and Mongolia Division, according to a proposal presented to members of the ruling Liberal Democratic Party on Dec 17. “We’re seeing a growing number of tasks related to Taiwan in national security, foreign policy and economic security,” Masahisa Sato, director of the LDP Foreign Affairs Division, said in announcing the planned role to reporters. “It’s a big step.” The official also will handle diplomatic issues tied to the East China Sea including the Japan-administered Senkaku Islands, which China claims as the Diaoyu. The proposal comes amid tensions in the Taiwan Strait. China repeatedly sends warplanes into Taiwan’s air defense identification zone, raising concerns that Beijing may be rehearsing for a military invasion of the island. “It looks a lot like them exploring their true capabilities,” U.S. Secretary of Defense Lloyd Austin said at the Reagan National Defense Forum in California earlier this month. Click here to read…

Chinese spies have penetrated Taiwan’s military, case documents reveal

For more than 20 years, Xie Xizhang presented himself as a Hong Kong businessman on visits to Taiwan. He now stands accused of having another mission: Recruiting spies for China. On one trip in 2006, Xie met a senior retired Taiwanese navy officer, Chang Pei-ning, over a meal, according to official documents accusing the pair of espionage. Chang would become one of Xie’s agents, the documents allege, helping him penetrate Taiwan’s active military leadership as part of a long-running Chinese operation to build a spy ring among serving and retired military officers. This comes amid a series of convictions for military espionage in Taiwan in recent years. Those cases reveal that China has mounted a broader campaign to undermine the democratic island’s military and civilian leadership, corrode its will to fight, extract details of high-tech weapons and gain insights into defence planning, according to senior retired Taiwanese military officers and current counterespionage agents, as well as former US military and intelligence officers with experience in Taiwan. Taiwan’s spy catchers are battling a campaign that has compromised senior officers at the heart of the island’s armed forces and government agencies, a steady stream of convictions handed down in the courts shows. Beijing has even penetrated the security detail assigned to protect Taiwan’s President Tsai Ing-wen. Click here to read…

U.S. defense bill triples Indo-Pacific fund and heads to Biden’s desk

Congress wants the U.S. military to further strengthen its posture in the Indo-Pacific region to fend off Chinese aggression. That was the message sent when the Senate passed the annual defense spending bill Dec 15, taking a more hawkish stance than the White House’s budget request from May. The bigger spending bill allows the Pentagon to build more ships and retire fewer. A fund specifically aimed at the Indo-Pacific was tripled from the year before. The $778 billion bill for fiscal 2022, up 5% from the prior year, cleared the House earlier this month and will be signed into law soon by President Joe Biden. Lawmakers’ hawkish tilt toward China was underscored by the $7.1 billion earmarked for the Pacific Deterrence Initiative (PDI) — more than the $5.1 billion requested by the administration. The U.S. looks to disperse its Pacific forces along the “first island chain,” which spans Okinawa, Taiwan and the Philippines, as concentrating them in just a few locations risks leaving them vulnerable to a Chinese missile strike. The PDI will be used to ramp up construction and updating of base infrastructure and military facilities, as well as improve supply lines for resources such as ammunition and fuel. Part of the PDI funding is expected to go toward missile defense. Click here to read…

UN talks on killer robots fail

UN talks aimed at thrashing out rules on the use of fully autonomous weapons systems have stumbled on stiff opposition from countries that invest heavily in military AI, leaving a legal vacuum. On Dec 17, the sixth review conference of the Convention on Certain Conventional Weapons (CCW) failed to arrange further negotiations on the use of Lethal Autonomous Weapon Systems (LAWS). Parties to the convention merely agreed to continue discussions instead. Despite calls for an “ambitious plan” made earlier by UN Secretary-General Antonio Guterres, the five-day gathering in Geneva bore little fruit, after nations that are investing heavily in the development of ‘killer robots’ blocked a decision on the establishment of legally-binding rules. According to Reuters, citing unnamed sources, among the vetoing countries were the US, Russia, and India. A number of states and NGOs have expressed dismay at the lack of progress in Geneva. Austrian Foreign Minister Alexander Schallenberg and New Zealand Minister for Disarmament and Arms Control Phil Twyford have pointed out the importance of developing new international laws regulating autonomous weapons. Click here to read…

Iran begins technical, security inspection of cameras to be installed in Karaj site

The Atomic Energy Organization of Iran (AEOI) on Dec 19 began technical and security inspection of cameras which are to be installed at Iran’s Karaj centrifuge producing plant by the International Atomic Energy Agency (IAEA), Behrouz Kamalvandi, the spokesman for the AEOI announced. Iran had set three conditions for the replacement of damaged cameras in Karaj, which are “carrying out judicial and security investigations on the dimensions of sabotage, condemnation (of sabotage act) by the IAEA and technical and security inspections of the cameras before installation,” Kamalvandi told Iran’s state TV in an interview. “Iran’s voluntary act to issue a license to replace these cameras was not due to a new agreement (with the IAEA), but it was done after these three preconditions are met,” he said. On Dec 26, Kamalvandi said that following exchange of views between the AEOI and the IAEA, it was decided that the agency should cooperate duly with the AEOI to ensure that the cameras would not be used for acts of sabotage at TESA Karaj Complex, a centrifuge component manufacturing workshop in north-central part of the country. IAEA Director General Rafael Mariano Grossi said Dec 15 that reinstallation of surveillance cameras at the facility is an important development for the IAEA’s verification and monitoring activities in Iran. Click here to read…

Security Council extends mandate of team monitoring sanctions against Taliban-linked entities

The UN Security Council decided on Dec 17 to extend for 12 months the mandate of the team monitoring sanctions against individuals and entities associated with the Taliban, as well as other individuals, groups, undertakings and entities associated with the Taliban in constituting a threat to the peace, stability and security of Afghanistan. Unanimously adopting Resolution 2611, the 15-member council directed the monitoring team to gather information on instances of non-compliance with the measures imposed in Resolution 2255, and to facilitate, upon request by member states, capacity-building assistance. It further directed the monitoring team to provide recommendations to the committee on actions taken to respond to non-compliance. The council highlighted the importance of ensuring that the monitoring team receives the necessary support to effectively, safely and in a timely manner fulfil its mandate. The council also decided to actively review the implementation of the measures outlined in this resolution and to consider adjustments, as necessary, to support peace and stability in Afghanistan. Click here to read…

Islamic countries pledge fund to stave off Afghanistan ‘chaos’

Islamic countries pledged on Dec 19 to set up a humanitarian trust fund for Afghanistan as, with millions facing hunger and a harsh winter setting in, Pakistan’s prime minister warned of chaos if the worsening emergency was not urgently addressed. The crisis is causing mounting alarm but the international response has been muted, given Western reluctance to help the Taliban government, which seized power in August. “Unless action is taken immediately, Afghanistan is heading for chaos,” Prime Minister Imran Khan told a meeting of foreign ministers from the Organisation of Islamic Cooperation in Islamabad. The trust fund, announced by Pakistan’s foreign minister Shah Mahmood Qureshi, will be set up under the aegis of the Islamic Development Bank. Allowing Afghanistan access to reserves frozen outside the country would be key to preventing economic collapse, participants in the meeting – which included representatives from the United Nations, United States, European Union and Japan – said in a statement. But it was unclear how much the fund would contain and the meeting did not provide official recognition to the Taliban government. Acting Afghan foreign minister Amir Khan Muttaqi said the government had restored peace and security and done much to address demands for more inclusiveness with respect for human rights, including the rights of women. Click here to read…

Pro-Beijing candidates sweep ‘patriots’-only Hong Kong vote amid low turnout

Pro-Beijing candidates swept to victory in an overhauled “patriots”-only legislative election in Hong Kong that was deemed regressive by critics, with turnout hitting a record low amid a crackdown on the city’s freedoms by China. The turnout of 30.2 percent was almost half that of the previous legislative poll in 2016, with the latest results showing almost all of the seats being taken by pro-Beijing and pro-establishment candidates. Some of these candidates cheered on stage at the central vote counting center and chanted “guaranteed win.” When asked if her political party lacked a public mandate given the low turnout, Starry Lee, the head of the pro-Beijing Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) that won half of the directly elected seats, said the electoral revamp would improve governance. “I do not believe this (the low turnout) is directly related to citizens not agreeing with this electoral system. I believe it needs some time for people to get adapted to this system,” she told reporters at the vote counting center. The election–in which only candidates screened by the government as “patriots” could run–has been criticized by some activists, foreign governments and rights groups as undemocratic. Mainstream pro-democracy parties did not participate, saying they could not endorse any candidates for a poll that was undemocratic. Click here to read…

2,500 Myanmar villagers flee army troops into Thailand

Fighting between Myanmar government forces and ethnic guerrillas has sent about 2,500 villagers fleeing across the border into Thailand, a Thai army officer said Dec 17. The exodus was the biggest since April, when several thousand villagers from Myanmar’s eastern state of Karen fled to Thailand following airstrikes by Myanmar government forces in territory held by the Karen ethnic minority. They were allowed to stay for a few days then returned to Myanmar. The Karen are one of several ethnic minorities who have been battling for decades for greater autonomy from Myanmar’s central government. Fighting between the two sides is intermitten but heated up after the military in February seized power from the elected government of Aung San Suu Kyi. A Thai army officer in the western border province of Tak told The Associated Press that around 2,500 villagers from Myanmar had crossed the Moei River, which marks the border, since Dec 16 to seek shelter in Thailand’s Mae Sot district. The officer, who spoke on condition of anonymity because he is not authorized to release information, said Thai authorities provided the evacuees ― mostly women and children ― with humanitarian assistance including shelter and food, and tested them for COVID-19. Click here to read…

US announces new ‘special coordinator’ for Tibet

The United States named a new “special coordinator for Tibetan Issues” on Dec 20, who will be tasked with restarting dialogue between the Dalai Lama and China, as well as promoting “respect for the human rights” of Tibetans. By assigning the role to a high-ranking official – Under Secretary Uzra Zeya – the Biden administration was demonstrating its commitment to addressing Tibetan issues, Secretary of State Antony Blinken said in an announcement. While continuing to serve in her current role, Zeya will “promote dialogue between the government of the People’s Republic of China (PRC) and the Dalai Lama, his representatives, or democratically elected Tibetan leaders”, Blinken said. The announcement will likely increase tension between the United States and China. President Joe Biden had been pressed to act after a bipartisan group from Congress wrote to him in mid-December, requesting that he meet with the Dalai Lama, 86, and press China to restart negotiations which ended over 12 years ago. China’s lack of interest in dialogue has led many observers to believe that Beijing is waiting out the Dalai Lama, hoping that the global movement he has built for greater rights in Tibet will wither away without the leadership of the Buddhist monk turned cultural iconClick here to read…

Erdogan seeks to boost ties at Turkey-Africa summit

Turkey is aiming to deepen economic and military ties on Africa, President Recep Tayyip Erdogan said in remarks at a major summit of African heads in Istanbul and called for a seat representing the continent at the UN Security Council. Heads of state from 16 African nations, along with more than 102 ministers and representatives of the African Union and the Economic Community of West African States are attending the summit in Istanbul. The Third Turkey-Africa Partnership Summit follows a flurry of activity by Turkey aimed at boosting ties with the continent. In October, Istanbul hosted business leaders and dozens of ministers from African states for a summit aimed specifically at increasing trade. The same month, Erdogan visited Angola, Nigeria, and Togo. “One-point-three billion people live on the African continent, and it is not represented at the Security Council,” Erdogan said on Dec 18. “This is a huge, flagrant injustice. I am still excited and thrilled every time I visit the continent,” Erdogan said, adding that he had made more than 50 trips to the continent and visited more than 30 countries since 2004. “This summit is a testament to the fact that Turkey is interested in Africa and Turkey’s interest in Africa is not a temporary interest, it is a maintained commitment. Our African brothers and sisters are showing they are interested in better cooperation with Turkey.” Click here to read…

Biden administration puts North Korean nuclear issue on backburner

The North Korean nuclear issue appears to have lost priority with the U.S. government, which is focusing heavily on ending China’s control of global supply chains, cross-strait relations and other issues. As Washington shows signs of preserving the status quo with the Kim Jong-un regime, which has in recent years refrained from testing nuclear and long-range missiles, the issue, described as “unproductive,” is feared by some to remain shelved. In April, after its months-long policy review of the totalitarian state, the Joe Biden administration came up with a “calibrated practical approach” to North Korea’s decades-long nuclear problem. However, combined with Pyongyang’s nonresponse to U.S. overtures and U.S. refusals to offer enticements to engage the reclusive state, negotiations on denuclearizing the North have made little progress. U.S. National Security Adviser Jake Sullivan admitted, Dec 17 (local time), that the U.S. “had not gotten traction in diplomacy with North Korea on that over the course of this year.” “The North Korean nuclear issue was already low on Biden’s agenda as the Kim regime has remained unresponsive to U.S. calls to return to the negotiating table,” said Shin Beom-chul, director of the Center for Diplomacy and Security at the Korea Research Institute for National StrategyClick here to read…

Medical

WHO sounds warning over fast-spreading Omicron

The Omicron variant of the coronavirus is spreading faster than the Delta variant and is causing infections in people already vaccinated or who have recovered from the COVID-19 disease, the head of the World Health Organization (WHO) said on Dec 20. WHO chief scientist Soumya Swaminathan added it would be “unwise” to conclude from early evidence that Omicron was a milder variant that previous ones. “With the numbers going up, all health systems are going to be under strain,” Soumya Swaminathan told Geneva-based journalists. The variant is successfully evading some immune responses, she said, meaning that the booster programmes being rolled out in many countries ought to be targeted towards people with weaker immune systems. “There is now consistent evidence that Omicron is spreading significantly faster than the Delta variant,” WHO director-general Tedros Adhanom Ghebreyesus told the briefing. “And it is more likely people vaccinated or recovered from COVID-19 could be infected or re-infected,” Tedros said. Their comments echoed the finding of study by Imperial College London, which said last week the risk of reinfection was more than five times higher and it has shown no sign of being milder than DeltaClick here to read…

Novavax’s Covid-19 Vaccine Approved by EU

Novavax Inc.’s Covid-19 vaccine was recommended for use by the European Medicines Agency, marking the first endorsement by a major regulator of a shot that uses an established technology. A scientific committee said the Novavax shot, dubbed Nuvaxovid, was safe and effective. The European Commission almost immediately granted conditional marketing authorization in the European Union. The approval applies to adults only. The endorsement broadens the EU’s Covid-19 vaccine menu to include a technology that is widely used against other diseases, including in some routine childhood immunizations, for example against hepatitis B. The use of a long-established vaccine technology may help overcome concerns among people who have been hesitant to take up shots so far. Novavax Chief Executive Stanley Erck said the authorization came “during a critical time when we believe having choice among vaccines will lead to increased immunization.” The shots also can be stored at normal refrigerator temperatures, averting the need for the freezers required for some other Covid-19 vaccines. The shot’s efficacy against symptomatic Covid-19 in clinical trials was around 90%, said the EMA. It is the fifth vaccine to win the endorsement of the EMA, and the first to use a traditional approach to vaccination. Click here to read…

S. Korea plans restrictions as it sets new virus record

Halting its steps toward normalcy, South Korea will clamp down on social gatherings and cut the hours of some businesses to fight a record-breaking surge of the coronavirus that has led to a spike in hospitalizations and deaths. Prime Minster Kim Boo-kyum confirmed the government’s intent to restore stricter social distancing measures during a virus meeting on Dec 15 as the country set another new one-day record in infections with 7,850 cases, the fourth time this month the daily tally exceeded 7,000. The country’s death toll is now 4,456 after 70 virus patients died in the past 24 hours, while a record 964 patients were in critical or serious condition. Officials previously said the country’s medical system could buckle if the number of serious cases topped 1,000 because it would greatly hamper hospitals’ ability to respond not only to COVID-19 but also to other medical conditions. The virus surge has been a rude awakening for South Korea, which significantly eased social distancing rules and fully reopened schools in November in what officials had described as a first step toward restoring pre-pandemic normalcy. Click here to read…

Xi meets with role models for building peaceful China

December 16, 2021

Chinese President Xi Jinping on Wednesday afternoon met with representatives of a meeting commending role models in implementing the country’s Peaceful China initiative in Beijing. Click here to read…

Former vice mayor of Haikou expelled from CPC, office: Xinhuanet

December 17, 2021

Feng Honghao, former vice mayor of Haikou, capital of south China’s Hainan Province, has been expelled from the Communist Party of China (CPC) and dismissed from public office for grave legal and disciplinary violations, said a statement by the provincial anti-graft body Thursday. An investigation found that Feng violated political discipline, forged and concealed evidence, and confronted investigations. Click here to read…

China to crack down on illegal coal mining: Xinhuanet

December 16, 2021

Chinese authorities on Thursday launched a nationwide campaign to crack down on illegal mining. The high demand for coal has shored up prices, prompting the resurgence of illegal coal mining, according to the Office of the Work Safety Committee of the State Council and the Ministry of Emergency Management. Click here to read…

China adjusts tariffs on imported commodities: Quishi

December 16, 2021

China will implement provisional tariffs that are lower than the most-favored-nation rates on 954 imported commodities, according to a circular issued by the Customs Tariff Commission of the State Council on Wednesday. The adjustment, involving commodities including cancer drugs, aquatic products and baby clothing, will take effect on Jan. 1, 2022. Click here to read…

China rolls out websites to improve services for small businesses: People’s Daily

December 17, 2021

China has ramped up support for small businesses, especially individual ones, by launching new websites that extend better services, according to the State Administration for Market Regulation. The latest data from the administration showed that among China’s over 150 million market entities, 102 million are individual or home businesses and 43.17 million are small and micro firms. They depend on accessible services and information to survive. Click here to read…

Hydrogen fuel cell core component put into production in central China: China Daily

December 16, 2021

A production line of proton-exchange membranes, a core component of the hydrogen fuel cell, has been put into operation in Wuhan, capital of Central China’s Hubei province.The production line at the Hydrogen Energy Co., Ltd. is expected to churn out about 300,000 square meters of the material annually, said a report by Science and Technology Daily. Click here to read…

China reveals upgraded J-15 fighter jet; key aircraft carrier roles expected: Global Times

December 16, 2021

China recently revealed an upgraded version of the J-15 ship-borne fighter jet that has just wrapped up test flights, with reports saying the new aircraft received enhancements in its missile pylons, the infrared search and track system, the radar and the wings. The upgraded J-15, potentially capable of operating with catapults, will play key roles on both China’s old and new aircraft carriers, experts said on Thursday. Click here to read…

China-Nepal freight train service launched, links Qinghai, Kathmandu: Global Times

December 16, 2021

The China-South Asia freight train service linking Haidong, Northwest China’s Qinghai Province and Nepal has been launched, beefing up the country’s ever-expanding rail freight network, which has made the China-Europe freight train service a calling card of the country’s logistics prowess despite the pandemic. Click here to read…

China to curb new ‘hidden debt’ in 2022 to fend off systemic financial risks: Global Times

December 16, 2021

China will firmly curb the increase of new “hidden debt” and stabilize the mechanism that settles existing “hidden debt” to guard against systemic financial risks, while speeding up preliminary work for special-purpose bond issues next year, Chinese authorities said on Thursday, after the tone-setting Central Economic Work Conference last week put a heavy emphasis on economic stability. Click here to read…

China envoy urges Japan not to join diplomatic boycott of Olympics: Kyodo
December 16, 2021

Chinese Ambassador to Japan Kong Xuanyou on Thursday urged Japan not to join U.S.-led diplomatic boycott of the Beijing Winter Olympics over human rights issues, likening it to a “political performance.” “Unfortunately, some people in Japan have been attacking China’s political system based on their biased views and spreading rumors and lies about the human rights situations in Xinjiang and Hong Kong to call for a diplomatic boycott of the Beijing Games,” the envoy said in a meeting held at Kyodo News. Click here to read…

China will ‘exhaust all means’ to lure global talent, despite push for tech self-sufficiency, Xi Jinping says: South China Morning Post

December 16, 2021

China is calling for more global talent to bolster technological innovation and national power, amid growing concern from foreign investors that Beijing’s “dual-circulation” strategy might turn it further inward and hamper international collaboration. China will “exhaust all means” to recruit intelligent and innovative professionals from around the world, President Xi Jinping said in a speech to a key national talent work conference in September. Click here to read…

Beijing moves to slow rush for Afghanistan’s resources by Chinese miners: South China Morning Post

December 17, 2021

Chinese mining companies have been warned against “blindly” organising inspection trips to sites in Afghanistan, after reports that some of them are looking for opportunities in the Central Asian nation since the withdrawal of US troops in August. A statement issued by the Chinese embassy in Kabul said Afghanistan’s interim government had regulations regarding the examination of mineral resources, and a permit was needed. Click here to read…

Economic

Record 2.1m Chinese sit civil service exam as economy slows, youth jobless rate climbs

A record number of Chinese are sitting the national civil service examination this year, in hopes of landing a secure government job amid slowing growth and high youth unemployment. More than 2.12 million applicants registered for Nov 28’s exam, known as guokao in Mandarin, according to the state-owned China News Service. That is 35 per cent higher than last year’s 1.57 million, and the first time the number has crossed 2 million. That also gives applicants just a 1-in-68 chance of success, even though 31,200 government jobs are open at 75 central government agencies and 23 attached institutions. Successful candidates will take up their positions early next year. More than a million applicants have taken the exam every year since 2009. This year’s surge in numbers comes amid a slowdown in economic growth, caused in large part by the Covid-19 pandemic, and a persistently high youth jobless rate. And job security is now back on top of the government agenda. Last week, Premier Li Keqiang re-emphasised the focus on “ensuring security in employment, people’s livelihoods and market entities”, a government catchphrase not seen for a while but often used when it launches policies to support the economy – much required now as the country weathers the worst of the pandemic’s impact. Click here to read…

Biden’s Economic Plans Collide With Inflation Reality

President Biden took office with a raft of economic plans to better position the U.S. to compete on the world stage and jump-start a labor market ravaged by the pandemic. Ten months into his term, Mr. Biden is facing a new set of economic challenges. The number of Americans seeking unemployment benefits fell to a 52-year low last week, available jobs are trending near record highs and consumer spending is rising. But those positive economic developments have been complicated by supply-chain bottlenecks and the highest inflation in three decades. Now, Mr. Biden is racing to show the public that he is taking action to address rising prices and bottlenecks amid mounting anxiety among some of his advisers about political fallout heading into next year’s midterm elections. He has instructed his most senior economic advisers to focus on the issues, White House officials said, setting up an internal task force that is tracking granular data such as how many containers are sitting in the country’s ports and how long they have been there. Many economists are skeptical that efforts under way by the White House, including releasing petroleum reserves and prodding ports to operate longer hours, can meaningfully change the short-term path of inflation.Click here to read…

US-EU press on with plan to tackle ‘dirty’ Chinese steel flooding markets

China’s “unfair trade practices” are once again in US crosshairs, with Washington indicating it will use a new metals alliance with the European Union (EU) to prevent Chinese dumping amid uncertainty over the next phase of bilateral trade talks. In an op-ed published on Nov 28 in the Pittsburgh Post-Gazette, US Trade Representative Katherine Tai and Secretary of Commerce Gina Raimondo took aim at cheap Chinese metals flooding global markets, lowering prices for American manufacturers and leading to the loss of 16,000 steel jobs in the US between January 2015 and October 2016. To tackle the problem, the United States will begin negotiations with the EU to create “the world’s first carbon-based sectoral agreement on steel and aluminium trade.” “The United States produces some of the cleanest steel in the world, while China produces some of the dirtiest,” they said. Late last month, Brussels and Washington announced a new metals deal that US President Joe Biden said would “restrict access to our markets for dirty steel, from countries like China”. The agreement notably combined climate and trade policy, while ending a years-long trade dispute over steel and aluminium tariffs. But the latest criticism by two senior US officials comes at a critical point, with the phase one trade deal set to expire in about one monthClick here to read…

US-China tech war: Beijing’s efforts to catch up in advanced chips on hold as country’s attention turns to mature nodes

China has been forced to make a course correction in its drive for semiconductor self-reliance, focusing instead on boosting production of mature technologies while putting the goal of catching up with the world’s most advanced chip makers on the back burner, according to analysts and industry insiders. Despite strong political will from President Xi Jinping, generous financial support from the government, and the enthusiasm of domestic players, China is facing the harsh reality that its chances of becoming self-sufficient in advanced chips are remote. On the one hand, China is able to ease the supply shortage by boosting production of lower end chips used in automobiles and home appliances, but on the other, it has to rely on wafer fabs such as Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics for advanced chip manufacturing in the coming years, if not decades, even if China’s own IC design firms are able to design these high end chips. “In the leading edge, it is going to become more difficult for Chinese companies to catch up,” Gokul Hariharan, co-head of Asia-Pacific TMT Research at US investment bank J.P. Morgan, said in an interview with the South China Morning Post. However, he added that the market for older generation technology remains promising and Chinese companies have potential there. Click here to read…

U.S. puts Chinese firms helping military on trade blacklist

The U.S. government put a dozen Chinese companies on its trade blacklist on Nov 24 for national security and foreign policy concerns, citing in some cases their help developing the Chinese military’s quantum computing efforts. The government also said several entities and individuals from China and Pakistan were added to the Commerce Department’s Entity List for contributing to Pakistan’s nuclear activities or ballistic missile program. The latest U.S. action on Chinese companies comes amid growing tensions between Beijing and Washington over the status of Taiwan and trade issues. In total, 27 new entities were added to the list from China, Japan, Pakistan, and Singapore. Commerce Secretary Gina Raimondo said in a statement that the new listings will help prevent U.S. technology from supporting the development of Chinese and Russian “military advancement and activities of non-proliferation concern like Pakistan’s unsafeguarded nuclear activities or ballistic missile program.” China’s embassy in Washington did not immediately respond to a request for comment. The Commerce Department wants to stop the Chinese military from developing its counter-stealth technology, which could include equipment like advanced radars, and counter-submarine applications such as undersea sensors. Click here to read…

Property tax concerns for China’s homeowners, buyers amid Xi Jinping’s common prosperity drive

After China announced plans to roll out a nationwide property tax to help address wealth inequality, concerns were raised if it will become the last straw to break the back the beleaguered real estate sector and become a move that would deal a blow to the domestic economy that could trigger a domino effect worldwide. The policy will not take immediate effect and China will first carry out pilot schemes for the next five years in several selected cities. “We must actively and steadily push forward property tax legislation and reform, and carry out pilots well,” President Xi Jinping said in August when spelling out his vision to lead the Chinese people to so-called common prosperity, with property tax one of the few specific policies mentioned. After years of debates on the first recurring property tax, with only property transactions currently taxed in mainland China, a property tax law will be “promptly” drafted once the pilot schemes have been completed. Under the law, both residential and non-residential properties will be taxed based on their values, but rural households will be excluded. While no other details of the taxation plans have been revealed, the pre-announcement highlighted the determination of China’s top leadership to launch the nationwide property tax. Click here to read…

India, Israel aim to boost ties through defense tech and trade

India and Israel are pushing to strengthen ties by deepening cooperation in the fields of defense and information technology, as well as resuming long-stalled negotiations over a free trade agreement. That comes as New Delhi looks to access Israel’s advanced military technology and to indirectly reinforce its relationship with Washington, a close ally to Israel. In turn, Israel hopes to unlock huge new markets for its companies. The Defense Research and Development Organization of India and Israel’s Directorate of Defense Research and Development signed a bilateral agreement earlier this month to promote the development of technologies for both military and commercial use. Under the move, Indian and Israeli startups will work together on tech such as small, unmanned aircraft and artificial intelligence. That follows an October agreement between Indian External Affairs Minister Subrahmanyam Jaishankar and Israeli Foreign Affairs Minister Yair Lapid aiming to complete a bilateral FTA by June 2022. Negotiations originally started in 2010 but have long been suspended. Now, for the first time, the two governments have specified a target date for concluding the deal. The bilateral FTA would enable the two countries to promote the development of IT-based technological innovations on top of India’s access to Israel’s advanced weaponry. Click here to read…

New omicron COVID variant throws wrench into pandemic recovery

Worries over the new coronavirus “variant of concern” have triggered a flight from risk in financial markets around the world as investors scramble to assess the implications for the global economic recovery and monetary policy. Following sell-offs in Asian and European stocks with the detection of the omicron variant, the Dow Jones Industrial Average on Nov 26 fell 2.5% for its steepest decline of the year. Economically sensitive energy and financial stocks were particularly hard hit. Meanwhile, benchmark West Texas Intermediate oil futures dropped below $70 a barrel in New York for the first time in roughly two months, down by more than 10%. Investors sold off risk assets, from stocks and oil to cryptocurrencies, and streamed into the relative safe haven of U.S. Treasuries. The benchmark 10-year yield fell to the 1.48% level at one point Nov 26 in the sharpest decline since March 2020 — when the initial wave of the pandemic threw markets into turmoil. Yields and bond prices move in opposite directions. With economies reopening and earnings rebounding, investors had been pouring money into risk assets, sparking a global stock rally this yearClick here to read…

Sri Lanka awards port project to China after dropping Japan, India

Sri Lanka will tap a Chinese company for a port project in Colombo, its largest city, that had been awarded to Japan and India before the partnership was scrapped early this year. The decision highlights Colombo’s balancing act and comes a month after Indian conglomerate Adani Group was awarded another deal worth over $700 million to develop the West Container Terminal at the Colombo port. President Gotabaya Rajapaksa has said he wants to be “neutral” in Sri Lanka’s relations with India and China as the nation struggles with a shortage of foreign currency. His cabinet on Nov 23 agreed to have state-run China Harbour Engineering develop the Eastern Container Terminal while stipulating that local authorities would handle all operations. It cited recommendations by a cabinet-appointed committee as the basis for the decision. The apparent pro-China tilt of Rajapaksa’s government is seen as a factor in the change of plans. Beijing has invested heavily in projects on the strategically positioned island under its Belt and Road infrastructure initiative. Sri Lanka had signed a memorandum of understanding with Japan and India in May 2019, under previous President Maithripala Sirisena, to jointly develop the Colombo terminal. Click here to read…

Turkey, UAE sign financial cooperation deals as ties warm

Turkey and the United Arab Emirates signed accords on energy and technology investments on Nov 24 after talks between President Tayyip Erdogan and Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan in Ankara. Sheikh Mohammed’s meeting with Erdogan, the first such visit in years, comes as the two countries work to mend frayed ties after a period of bitter regional rivalry, and amid a currency crisis in Turkey. The memorandums of understanding were signed between the Abu Dhabi Development Holding (ADQ), Turkish Wealth Fund (TVF), and the Turkish Presidency Investment Office, as well as with some Turkish companies. The agreements highlight the pivot towards economic partnership after a battle for regional influence since the Arab uprisings erupted a decade ago. The disputes have extended to the eastern Mediterranean and Gulf, before Ankara launched a charm offensive in the region last year. ADQ signed an accord on investing in Turkish technology firms and on establishing a technology-oriented fund, while Abu Dhabi Ports also signed an agreement on port and logistics cooperation. The UAE announced it was establishing a $10bn fund to support mainly strategic investments in Turkey, including in the health and energy fields, its state news agency WAM said. Click here to read…

Strategic

U.S.-China defense talks: Biden seeks channel to Xi’s inner circle

Efforts to secure early talks between U.S. and Chinese defense chiefs show how both sides see a military channel as a bare minimum to avoid accidental confrontations. The U.S. and China are working to arrange a phone call or a virtual meeting of top defense officials, including U.S. Defense Secretary Lloyd Austin, before the end of the year, multiple American officials have said. With Chinese President Xi Jinping tightening his grip on power, Austin will seek to build ties with officials at the Communist Party’s core who are close to the leader. “China attaches great importance to the development of relations between the two militaries and is willing to maintain exchanges and cooperation with the U.S.,” Defense Ministry spokesperson Wu Qian told reporters Nov 25, suggesting Beijing is interested in the idea as well. Austin looks to meet with Xu Qiliang, vice chairman and Xi’s deputy in the Chinese Communist Party Central Military Commission. “Xu is essentially in charge of day-to-day operations of the People’s Liberation Army,” according to a source with knowledge of the PLA. The U.S. defense secretary in the past has frequently engaged with China’s defense minister. But the Communist Party, not the government, is behind key political and military decisions in ChinaClick here to read…

U.S. invitation of Taiwan to democracy summit angers China

The Biden administration has invited Taiwan to its Summit for Democracy next month, the State Department announced, prompting sharp criticism from China, which considers the self-ruled island as its territory. The summit makes good on a pledge President Joe Biden made during his campaign, and it reflects his emphasis on returning the U.S. to a global leadership position among world democracies. The event is aimed at gathering government, civil society and private sector leaders to work together on fighting authoritarianism and global corruption and defending human rights. The invitation list features 110 countries, including Taiwan, but does not include China or Russia. The inclusion of Taiwan comes as tensions between the U.S. and China have ramped up over America’s approach to the island nation. The United States’ “One China” policy recognizes Beijing as the government of China but allows informal relations and defense ties with Taipei. The democracy summit invite list set off a new round of criticism from Beijing. “What the U.S. did proves that the so-called democracy is just a pretext and tool for it to pursue geopolitical goals, suppress other countries, divide the world, serve its own interest and maintain its hegemony in the world,” said Zhao Lijian, spokesperson for the Ministry of Foreign Affairs. Click here to read…

Pentagon Plans to Improve Bases in Guam and Australia to Confront China

A Pentagon review of military resources world-wide plans improvements to bases in Guam and Australia to counter China but contains no major reshuffling of forces as the U.S. moves to take on Beijing while deterring Russia and fighting terrorism in the Middle East and Africa. Known as the global posture review, the assessment—whose results haven’t been previously reported—plans for improvements to the airfields and other infrastructure at U.S. bases in Guam and Australia, defense officials said. Force posture in the Middle East, Europe and Africa will continue to be analyzed, the official and others in the Pentagon said. Afghanistan underwent a separate interagency review, they said, and cyber and nuclear capabilities are also being reviewed under separate initiatives. A China-specific review, of which much of the results are classified, was completed earlier this year. Another senior defense official said that, despite expectations that it would result in strategic changes, the global posture review didn’t find a need for large adjustments. More changes may follow a new national-defense strategy due early next year, the official said. Click here to read…

Russia, China sign roadmap for closer military cooperation

Russia’s defense chief on Nov 23 signed a roadmap for closer military ties with China, pointing to increasingly frequent U.S. strategic bomber flights near both countries’ borders. During a video call, Defense Minister Sergei Shoigu and his Chinese counterpart Wei Fenghe “expressed a shared interest in stepping up strategic military exercises and joint patrols by Russia and China,” according to the Russian Defense Ministry. “China and Russia have been strategic partners for many years,” Shoigu said. “Today, in conditions of increasing geopolitical turbulence and growing conflict potential in various parts of the world, the development of our interaction is especially relevant.” Shoigu pointed to increasingly intensive flights by the U.S. strategic bombers near Russian borders, saying that there were 30 such missions over the past month alone. “This month, during the U.S. Global Thunder strategic force exercise, 10 strategic bombers practiced the scenario of using nuclear weapons against Russia practically simultaneously from the western and eastern directions”. Wei praised Russia for successfully countering what he described as U.S. pressure and military threats. Shoigu and Wei hailed a series of maneuvers that involved Russian and Chinese warplanes and naval ships, and signed a plan for military cooperation for 2021-2025. Click here to read…

Meeting near Russian border, NATO weighs response to Moscow’s military maneuvers

Polish President Andrzej Duda has said the Belarus border issue and the Ukraine buildup cannot be seen separately. Duda visited NATO headquarters last week to ask for “strengthening of the air policing mission…strengthening of observation, surveillance and strengthening of the readiness of NATO units along the eastern flank of the alliance.” So the stakes are particularly high for the meeting of NATO foreign ministers starting on Nov 30, coincidentally taking place in Riga, Latvia. Speaking to the press on Nov 27, NATO Secretary-General Jens Stoltenberg pointed out it was “the second time this year that Russia has amassed large and unusual concentrations of forces in the region…heavy capabilities like tanks, artillery, armored units, drones and electronic warfare systems as well as combat-ready troops.” Stoltenberg said the move is “unprovoked and unexplained. It raises tensions and it risks miscalculations.” He also warned that “any use of force against Ukraine will have consequences [and] costs for Russia.” NATO is grappling with how to avoid such miscalculations, while making the costs appear high enough to get the Kremlin to back off. “All options are on the table and it’s now for the alliance to decide what are the next moves that NATO wants to take,” Karen Donfried, the US assistant secretary of state for European and Eurasian affairs, told reporters on Nov 26. Click here to read…

Erdogan says Turkey ready to mediate between Ukraine and Russia – NTV

Turkey is ready to act as a mediator between Ukraine and Russia, President Tayyip Erdogan was cited as saying by broadcaster NTV on Nov 29, despite having angered Moscow by selling armed drones to Kyiv earlier this year amid tensions in eastern Ukraine. U.S., NATO and Ukrainian officials say Russian forces have massed on the border of Ukraine, which is also battling Moscow-backed separatists who control part of its territory in the east. Ukraine’s military intelligence has said Moscow was preparing for an attack in early 2022. Russia has dismissed the comments as “malicious” U.S. propaganda. NATO member Turkey has good ties with both Kyiv and Moscow but opposes Russian policies in Syria and Libya. It has forged close energy and defence cooperation with Russia but has also sold Turkish-made drones to Kyiv, angering Moscow. Speaking to reporters on a flight from Turkmenistan, Erdogan was cited as saying by NTV and other media Turkey wanted the Black Sea region to be in peace, adding he was discussing the issue with his Russian counterpart Vladimir Putin frequently. Asked about Erdogan’s offer, Kremlin Spokesman Dmitry Peskov declined to comment. Last month, Moscow said the Turkish drones risked having a destabilising impact. Click here to read…

Why wind tunnels are key in China’s race for hypersonic weapon supremacy

Development of China’s new-generation hypersonic weapons and aircraft is expected to get a boost with construction of a wind tunnel simulator to test vehicles and missiles at many times the speed of sound – with more such facilities in the pipeline. Recent announcements and tests involving vehicles and spacecraft suggest China has accelerated its hypersonic arms race with the United States as Beijing tries to gain a generation’s edge, according to defence experts. China, the US and Russia have been locked in a hypersonic technology competition. The term hypersonic relates to speeds between Mach 5 and 10, or five to 10 times the speed of sound. Hypersonic weapons glide and travel in a low orbit and are more manoeuvrable than conventional intercontinental ballistic missiles, making them harder to track and destroy by the US’s global missile-defence network. The Aerodynamics Research Institute (ARI), under the state-owned Aviation Industry Corp of China (AVIC), announced last weekend that the FL-64 – a one-metre-class hypersonic aerodynamic wind tunnel – had passed major calibration tests after two years of development. This indicated that it was ready to for testing hypersonic weapons and equipment. Click here to read…

US & UK to share classified submarine data with Australia under AUKUS

Washington, London, and Canberra have signed an agreement on the sharing of sensitive, classified submarine data as part of the AUKUS pact to arm Australia with nuclear-powered subs, reached by the sides in September. The newly-signed deal will allow the US and the UK to share nuclear propulsion information with Australia “which they cannot with any other country,” Australian Defense Minister Peter Dutton announced on Nov 22. This exchange will help determine the “optimal pathway” for Canberra to acquire nuclear-powered submarines under the AUKUS pact, he said. Australia is currently in an 18-month period to examine the requirements for the delivery of the state-of-the-art hardware. The deal will also allow Australian servicemen to receive training from their American and British counterparts on properly building and operating nuclear-powered submarines. “This agreement will assist Australia to develop the necessary skills and knowledge to create a world-class regulatory and safety regime required for the safe operation of naval nuclear propulsion,” Dutton said. The Exchange of Naval Nuclear Propulsion Information Agreement now has to be reviewed by a committee in the Australian Parliament. Click here to read…

Italy, France to deepen ties as Merkel’s exit tests European diplomacy

The leaders of Italy and France will sign a treaty on Nov 26 to strengthen bilateral ties at a time when European diplomacy is being tested by the departure of German Chancellor Angela Merkel. The Quirinale Treaty is aimed at enhancing cooperation between Paris and Rome in areas including defence, migration, the economy, culture and trade. The signing ceremony comes shortly after a new coalition pact was agreed in Germany, ending 16 years of rule by Merkel, who was the undisputed leader of Europe and forged especially close ties with successive French leaders. The new Berlin administration is expected to be more inward-looking, especially at the start of its mandate, and both Paris and Rome are keen to deepen relations in a period clouded by economic uncertainty, the pandemic, a more assertive Russia, a rising China and a more disengaged United States. “Macron’s intention is to create a new axis with Italy, while it is in Italy’s interest to hook up with the France-Germany duo,” said a senior Italian diplomatic source, who declined to be named. Click here to read…

Japan and Vietnam share concerns over China at summit

Leaders from Japan and Vietnam expressed “serious concern” over China’s drive to increase its clout in the East and South China seas at a summit in Tokyo on Nov 24. Japanese Prime Minister Fumio Kishida and his Vietnamese counterpart, Pham Minh Chinh, met to discuss areas of mutual interest and agreed that Japan will export more defense equipment, such as naval vessels, to Vietnam. Chinh is the first foreign leader to visit Japan since Kishida took office. This is also Kishida’s first in-person meeting with another head of state, other than at international conferences. At the summit, Kishida stressed that Vietnam is a “vital partner” in creating a free and open Indo-Pacific. Japanese Defense Minister Nobuo Kishi visited Vietnam in September to attend the signing of an agreement on defense equipment exports. On Nov 23, Kishi also met with his Vietnamese counterpart, Gen. Phan Van Giang, to discuss expanding Japan’s exports of such equipment. Vietnam could receive naval vessels and related equipment from Japan, and the two countries also signed a military cooperation deal covering cybersecurity and medicine, such as for naval and air force officers, Vietnam’s state-controlled media reported. In 2017, Japan agreed to build six coast guard patrol boats for Vietnam in a $350 million dealClick here to read…

Kishida tells troops: Capacity to strike enemy bases is option

Japanese Prime Minister Fumio Kishida on Nov 27 vowed to strengthen his nation’s defense capabilities, citing threats stemming from North Korea and China. “The security environment surrounding Japan is changing at an unprecedented speed,” Kishida said in front of 800 troops at the Japan Ground Self-Defense Force’s Camp Asaka. “To strengthen defense capacity, we will not rule out options such as having enemy base strike capabilities,” Kishida said, adding that he had ordered a review of Japan’s Medium Term Defense Program as well as its national security and defense guidelines. North Korea’s recent tests of more advanced rockets have raised the possibility that Japan’s current missile defenses may be rendered ineffective, forcing policymakers to consider new options. They include the ability to attack the missile launch itself in enemy territory. Japan’s pacifist constitution only allows self-defense capabilities, ruling out preemptive strikes. The strikes being debated now would only be fired after it has been determined that Japan is being attacked. “We cannot overlook how North Korea has developed new technologies such as hypersonic weapons and trajectory-shifting missiles,” Kishida said. The prime minister also shared his concerns about China during a speech on a blustery morning at the camp, on the border between Tokyo and Saitama Prefecture. Click here to read…

Kyrgyz president’s allies poised to win in landslide

Allies of Kyrgyz President Sadyr Japarov appeared set to win Nov 28’s parliamentary election by a landslide, according to early figures, further cementing his grip on the Central Asian nation with close ties to Russia and China. A Russian military airbase located in Kyrgyzstan allows Moscow to project power throughout the broader region and to locations such as Afghanistan. With ballots from more than 90% of polling stations counted, opposition party Butun Kyrgyzstan had received 6.8% of the vote, with the rest split between a host of pro-presidential parties. Japarov, 52, came to power during the turmoil that followed the October 2020 parliamentary elections, the results of which a number of political parties refused to accept. Freed from prison where he was serving a sentence for a political stunt that involved kidnapping a provincial governor, Japarov became prime minister within days and then successfully ran for president on a nationalist and populist platform. Japarov has maintained the former Soviet republic’s traditionally close ties with Russia and dismissed suggestions of allowing the United States to establish a military base in the country in addition to the existing Russian facility. This week the state security service headed by Japarov’s close ally said it had prevented a coup planned by a group of unnamed former senior officials and parliament members. Click here to read…

Gaddafi’s son blocked from Libya election

Libya’s election commission has disqualified 25 of the 98 candidates running for president, including Saif al-Islam Gaddafi, son of the leader whose 2011 overthrow plunged the North African country into a decade-long civil war. Gaddafi had announced his candidacy on November 14 and looked like one of the front-runners in the contest, scheduled for December 24. On Nov 24, however, the election commission ruled him ineligible. It is a preliminary decision and can be appealed in court. A military prosecutor in Tripoli had urged the commission to disqualify Gaddafi on grounds of his 2015 conviction in absentia for war crimes related to the 2011 insurrection that overthrew his father. Muammar Gaddafi had ruled Libya for over 40 years before he was ousted and killed by NATO-backed rebels. Saif al-Islam was the chosen candidate of the Popular Front for the Liberation of Libya, a group of his father’s loyalists formally established in 2016. He also has a pending arrest warrant on behalf of the International Criminal Court (ICC) in The Hague. Gaddafi reacted to the decision by pointing out that General Khalifa Haftar has two criminal convictions – a 1987 court-martial over his surrender to Chad, and a 1993 civilian conviction for plotting to overthrow the government – yet he has not been disqualified from running. Click here to read…

Those guilty of chemical attacks must be held accountable, says UN Chief

The perpetrators of chemical-weapon attacks must be identified and held accountable for their actions, UN Secretary-General Antonio Guterres said on Nov 29. His comments came as he opened the second session of the Conference on the Establishment of a Middle East Zone Free of Nuclear Weapons and Other Weapons of Mass Destruction. Currently, 60 percent of UN member states are covered by five nuclear weapon-free zones in Latin America and the Caribbean; the South Pacific; Southeast Asia; Africa; and Central Asia. Guterres said that expanding these zones would lead to more robust disarmament and non-proliferation norms. The second session of the annual conference, which was delayed by a year because of the COVID-19 pandemic, was presided over by Mansour Al-Otaibi, the permanent representative to the UN for Kuwait, which was chosen to inherit the presidency from Jordan after the first session in 2019. In line with a General Assembly decision, the goal of the conference is to “elaborate a legally binding treaty” to establish a Middle East zone free of nuclear weapons and other weapons of mass destruction, on the basis of “arrangements freely arrived at by the states of the region.” Click here to read…

Iran Doubles Down on Demands as Nuclear Talks Resume

Iran made many demands as it resumed talks Nov 29 with the U.S. and other world powers aimed at salvaging the 2015 nuclear deal, doubling down on its position before negotiations first started in the spring and raising doubts over an early breakthrough. The talks, taking place in the Austrian capital amid a strict coronavirus lockdown, are intended to agree on the steps Iran and the U.S. will take to return into compliance with the 2015 deal, which lifted most international sanctions on Tehran in exchange for strict but temporary restrictions on Iran’s nuclear work. “The U.S. has no other way for its return to the JCPOA but to remove all the sanctions imposed on the Iranian nation since it walked out of the JCPOA,” Iranian Foreign Minister Hossein Amir-Abdollahian said, referring to the formal name of the deal, the Joint Comprehensive Plan of Action. He said the U.S. return to the deal would depend on “guarantees that Iran’s economic partners would be able to deal with Iran without worries and with confidence.” In a sign of the distance between the two sides over reaching an agreement, Iran continued to refuse to talk directly with the U.S. team. Click here to read…

Israel signals readiness to escalate Iran confrontation

Prime Minister Naftali Bennett has signalled a readiness to step up Israel’s confrontation with Iran, reiterating on Nov 23, his country would not be bound by any new Iranian nuclear deal with world powers. Bennett, who took power in June, described Iran in a speech as being at “the most advanced stage of its nuclear programme”. While his government has previously said it would be open to a new nuclear deal with tougher restrictions on Iran, Bennett reasserted Israel’s autonomy to take action against its arch foe. “We face complicated times. It is possible that there will be disputes with the best of our friends,” he told a televised conference hosted by Reichman University. “In any event, even if there is a return to a deal, Israel is of course not a party to the deal and Israel is not obligated by the deal.” Bennett voiced frustration with what he described as Israel’s smaller-scale clashes with Iran’s militia allies”. “To chase the terrorist du jour sent by the [Iranian covert] Quds Force does not pay off anymore. We must go for the dispatcher.” Stopping short of explicitly threatening war, Bennett said cyber-technologies and what he deemed Israel’s advantages as a democracy and international support could be brought to bear. “Iran is much more vulnerable than is commonly thought,” he said. Click here to read…

World’s highest child soldier numbers in West, Central Africa

West and Central Africa is the region with the highest number of child soldiers in the world, as well as the most underage victims of sexual violence, according to a new report by the United Nations Children’s Fund (UNICEF). Since 2016, the region has been hit by growing conflict in which more than 21,000 children have been recruited by government forces and armed groups, the report said on Nov 23. In addition, more than 2,200 children have been verified as victims of sexual violence during the past five years, it added. Meanwhile, some 3,500 children have been abducted, making it the region with the second-highest abductions in the world, while there have been at least 1,500 attacks on schools and hospitals. Overall, the UN’s children agency said more than 57 million children in the region are in need of humanitarian assistance, a number that has doubled since last year as a result of conflict and the COVID-19 pandemic. “Whether children in West and Central Africa are the direct targets or collateral victims, they are caught up in conflict and face violence and insecurity,” said Marie-Pierre Poirier, UNICEF’s regional director for West and Central Africa. Click here to read…

Medical

COVID: What we know about the omicron variant

The new variant B.1.1.529, which the World Health Organization officially named omicron, was first discovered on November 11, 2021, in Botswana. That’s just north of South Africa. Since then, B.1.1.529 has also been found in South Africa. It’s mainly been diagnosed in the province of Gauteng, which includes Johannesburg and Pretoria. Scientists estimate that up to 90% of all new coronavirus cases in Gauteng may be linked to B.1.1.529. By Nov 29, there were 13 confirmed omicron cases in the Netherlands, and other cases outside of southern Africa, including in Germany, Hong Kong, Israel, Italy, France, Canada and Australia. Researchers are concerned about the new variant because they say it shows an “extremely” high number of mutations of the coronavirus. They have found 32 mutations in the spike protein. By comparison, the delta variant, which is considered highly infectious, shows eight mutations. While the number of mutations in the spike protein is not an exact indication of how dangerous a new variant is, it does suggest that the human immune system may find it harder to fight the new variant. There are indications that omicron can escape an immune response, leaving people at a greater risk. Click here to read…

Omicron variant: in slap at China, US praises South Africa’s detection of new Covid strain

The United States praised South Africa on Nov 27 for quickly identifying the new Covid strain called Omicron and sharing this information with the world – a barely veiled slap at China’s handling of the original outbreak of the novel coronavirus. US Secretary of State Antony Blinken spoke to South African International Relations and Cooperation Minister Naledi Pandor and they discussed cooperation on vaccinating people in Africa against Covid-19, the State Department said. “Secretary Blinken specifically praised South Africa’s scientists for the quick identification of the Omicron variant and South Africa’s government for its transparency in sharing this information, which should serve as a model for the world,” the statement said. In August of this year the US intelligence community released a report in which it said it could not reach a firm conclusion on the origins of the virus – among animals or in a research lab were top scenarios – because China had not helped in the US investigation. Washington has also accused Beijing of waiting too long before sharing crucial information about the outbreak, saying that a more transparent handling could have helped halt the spread of the virus. Click here to read…

China makes billion-dose pledge to Africa to help overcome the coronavirus pandemic

China has promised to donate a billion coronavirus vaccines, advance billions of dollars for African trade and infrastructure, and write off interest-free loans to African countries to help the continent heal from the coronavirus pandemic. Speaking via a video link from Beijing during the Forum on China-Africa Cooperation (FOCAC), Chinese President Xi Jinping said China would supply a billion doses to help Africa vaccinate 60 per cent of its population by next year. Of those, 600 million would be via donations and the rest would be produced jointly by African countries and Chinese companies. In addition, China would send medical teams to help the continent deal with the pandemic, Xi said, to the forum, which is being hosted by Senegal. “China will undertake 10 medical and health projects for African countries and send 1,500 medical personnel to Africa,” Xi said. Most countries in Africa have not vaccinated their citizens. The World Health Organization says while many high-income countries reported more than 60 per cent vaccine coverage, just over 7 per cent of Africa’s population is fully vaccinated – despite a recent rise in shipments to the continent. Click here to read…

Big Pharma unveils its plans for Omicron strain

With the World Health Organization (WHO) designating Omicron the latest “variant of concern” following an emergency meeting on Nov 26, warning that the highly mutated strain could be more infectious than those seen before, Big Pharma quickly launched into PR-mode, as several firms rushed to outline how they would combat the new variant. “In the event that [a] vaccine-escape variant emerges, Pfizer and BioNTech expect to be able to develop and produce a tailor-made vaccine against that variant in approximately 100 days, subject to regulatory approval,” Pfizer announced, though it did not say whether any specific research had been conducted into Omicron so far. BioNTech, in a separate statement, noted that Omicron “differs significantly from previously observed variants as it has additional mutations located in the spike protein,” referring to the mechanism by which the coronavirus gains access to host cells and causes infection. The company also said that a so-called “escape variant” could “require an adjustment of our vaccine if the variant spreads globally.” Moderna and Johnson & Johnson, two other major Covid vaccine developers, issued similar missives on Nov 26, with the latter company stating that it’s already testing a booster shot for healthy adults that contains twice the vaccine dosage than what is currently approvedClick here to read…

Political, legal workers urged to follow guiding principles of key CPC plenum: Xinhuanet

November 26, 2021

A senior official of the Communist Party of China (CPC) on Thursday urged political and legal workers nationwide to study and implement the guiding principles of the sixth plenary session of the 19th CPC Central Committee. Guo Shengkun, a member of the Political Bureau of the CPC Central Committee and head of the Commission for Political and Legal Affairs of the CPC Central Committee, made the remarks at a commission meeting. Click here to read…

China to improve management and utilization of special local government bonds: Xinhuanet

November 25, 2021

China will refine the management of special local government bonds, optimize utilization of the funds and strengthen their supervision, the State Council’s executive meeting chaired by Premier Li Keqiang decided on Wednesday. Since the beginning of this year, in accordance with the newly-added quota approved by the National People’s Congress, local authorities have issued and utilized special local government bonds as appropriate, providing a strong underpinning for the development of key projects and major livelihood programs. Click here to read…

China issues white paper on China-Africa cooperation in new era: Xinhuanet

November 26, 2021

China’s State Council Information Office on Friday issued a white paper detailing the country’s cooperation with Africa in the new era. The white paper, titled “China and Africa in the New Era: A Partnership of Equals,” said shared past experiences and similar aims and goals have brought China and Africa close together. Click here to read…

5G, AI combine to empower wide array of socio-economic fields in China: People’s Daily

November 25, 2021

In recent years, China has witnessed nonstop expansion in the integration of its 5G industry with other high-tech technologies, such as the Internet of Things and big data, which have been applied in various socio-economic fields that range from public service delivery and the construction of an Industrial Internet to the roll out of smart cities and intelligent communities. Click here to read…

Chinese women’s federation issues evidence guide on domestic violence: People’s Daily

November 26, 2021

The All-China Women’s Federation has released a guide on collecting evidence of domestic violence amid efforts to help victims safeguard their legitimate rights and interests. The guide lists validate evidence of domestic violence, including proof of police involvement, police caution for domestic violence, and proof of support from women’s federations, social organizations, and employers. The lists also validate medical records and bills, recordings of the abusive process, written undertakings to stop abusive behavior, and testimony of witnesses. Click here to read…

China announces ambitious plans for commercial space sector: Global Times

November 25, 2021

China has announced a number of ambitious plans for the country’s commercial space sector at the seventh China Commercial Aerospace Forum that opened in Wuhan, Central China’s Hubei Province, on Thursday. Some of the highlights include the rollout of a new remote sensing constellation scheme, the next-stage layout for China’s space-borne Internet-of-Things (IoT) project, and arrangements for the Kuaizhou 1A launch vehicle for commercial spaceflights. Click here to read…

China upgrades cold-resistant clothing for border troops: Global Times

November 25, 2021

China recently developed new cold-resistant clothing and equipment for plateau operations, in a move analysts said on Thursday will support border defense troops stationed in high-altitude regions to overcome the harsh winter. Upgrading clothing and equipment for a second consecutive year shows the focus of the Chinese People’s Liberation Army (PLA) on its border defense troops’ quality of life and combat capability amid a border standoff with India, they said. Click here to read…

Chinese cities suspend rooftop PV power projects for exceeding grid capacity: Global Times

November 25, 2021

A number of areas in China have held off on the projects for rooftop photovoltaic (PV) power generation, as the application projects have exceeded grid capacity creating potential safety hazards, after the National Energy Administration (NEA) in June released a statement aiming to promote the rooftop PV power projects to achieve the country’s double targets of carbon peak and carbon neutrality. Click here to read…

China urges Japan against diplomatic boycott of Beijing Olympics: Kyodo

November 25, 2021

China on Thursday urged Japan to support the Beijing Olympics, as the United States and other democratic countries are weighing up whether to implement a “diplomatic boycott” of the Winter Games. “China fully supported Japan in hosting the Tokyo Olympics” this summer, so “Japan should have basic faith,” Foreign Ministry spokesman Zhao Lijian told reporters. Click here to read…

China’s nominee wins Interpol seat despite concerns of human rights groups: South China Morning Post

November 25, 2021

A Chinese government official has been elected to an oversight role at global crime-fighting body Interpol despite opposition from rights groups and lawmakers from 20 countries.
Hu Binchen, deputy director general of the Chinese public security ministry’s international coordination department, on Thursday won one of two seats representing Asia on the body’s executive committee, Interpol said. Click here to read…

China to roll out trade support amid ‘increasing pressure’ behind the scenes: South China Morning Post

November 25, 2021

China has no reason to be “blindly optimistic” about trade amid increasing headwinds, the country’s vice commerce minister has said, in the latest warning from Beijing about challenges facing the world’s No 2 economy. “Behind the scenes of China’s rapid growth in trade, we must be clear that many trade companies, especially small firms, are facing increasing pressure and difficulties,” Ren Hongbin told a press conference on Wednesday.
“It is common for them not to take orders and they are seeing profits rise less.” Click here to read…

China calls for ‘strict accountability’ at local government levels where funds are misused: South China Morning Post

November 25, 2021

China’s State Council says local governments should be held accountable for wasteful spending, as Beijing seeks to strike a balance between controlling growing debt risks and maintaining steady economic growth. While China’s overall debt level has stabilised and is steadily declining, the economy is facing “new” downward pressure, according to a report by the official Xinhua News Agency on Wednesday after the State Council executive meeting, which was chaired by Premier Li Keqiang. Click here to read…

Baidu, Pony.ai approved for robotaxi services in Beijing: Reuters

November 25, 2021

Chinese tech group Baidu Inc and self-driving startup Pony.ai have won approval to launch paid driverless robotaxi services that will see the firms deploy not more than 100 vehicles in an area in China’s capital Beijing. The state-backed Beijing Daily newspaper reported on the approvals on Thursday, citing a ceremony held by the Beijing Economic and Technological Development Zone, where the 60 square kilometre-large area (23 square miles) is located. Click here to read…

White paper lists China’s achievements in responding to climate change: Xinhuanet
October 27, 2021

Significant changes have taken place in China as the country responds to climate change, according to a white paper released Wednesday by the State Council Information Office.

China has coordinated economic development with pollution and emission reduction, pushed forward revolutions in energy production and consumption, driven low-carbon industrial transition, increased carbon sink capacity of ecosystems, and promoted green and low carbon lifestyles, said the white paper titled “Responding to Climate Change: China’s Policies and Actions.” Click here to read…

Chinese FM elaborates on China’s policy towards Afghanistan: Xinhuanet
October 27, 2021

Chinese State Councilor and Foreign Minister Wang Yi on Tuesday briefed the media on his contact with the delegation of the Afghan Taliban’s interim government before he left the Qatari capital of Doha. Wang noted that during his visit to Qatar, he had contact with Acting Deputy Prime Minister Mullah Abdul Ghani Baradar and Acting Foreign Minister Amir Khan Muttaqi of the Afghan Taliban’s interim government, during which the Afghan side elaborated on the domestic and foreign policies pursued by the Afghan interim government. Click here to read…

China to defer tax payment for manufacturing SMEs: Xinhuanet
October 27, 2021

China will defer tax payment for small and medium-sized enterprises (SMEs) in the manufacturing sector to ease the impact of rising costs, a State Council executive meeting decided on Wednesday. The decision would in effect defer around 200 billion yuan (31.32 billion U.S. dollars) of tax payment for manufacturing SMEs, the meeting said. Click here to read…

China to keep record of off-campus training institutions: Xinhuanet
October 27, 2021

China will soon have a comprehensive record of all off-campus training institutions in the country, the educational authority announced Wednesday. In a circular, the Ministry of Education has tasked all educational authorities in provincial-level regions with confirming the exact number of off-campus training institutions in their respective areas, and ensuring all of them are registered with the ministry’s online platform for after-school training management. Click here to read…

Hong Kong passes bill to vet movies over national security: Xinhuanet
October 27, 2021

The Legislative Council (LegCo) of China’s Hong Kong Special Administrative Region (HKSAR) on Wednesday approved a bill allowing authorities to revoke certificates of films that would be contrary to the interests of national security. The Film Censorship (Amendment) Bill 2021 was adopted in its third reading at the LegCo, giving the Chief Secretary for Administration of the HKSAR government power to direct authority to revoke the certificate of a film whose exhibition is believed to damage the interests of national security. Click here to read…

China to extend tax incentives for overseas investors: People’s Daily
October 28, 2021

China will extend the preferential tax policy for overseas investors investing in the mainland bond market, as part of its efforts to promote opening-up and attract foreign investment, the State Council’s executive meeting chaired by Premier Li Keqiang decided on Wednesday. Click here to read…

Experts seek ways for countries to enhance mutual trust, consensus: China Daily
October 28, 2021

Experts said the international community should enhance mutual trust and consensus to find new ways to jointly address global security challenges and safeguard world peace and stability. Over 50 scholars from more than 20 countries and international organizations participated in the 2021 Beijing Xiangshan Forum Webinar that concluded on Tuesday. The webinar was organized by the Beijing Xiangshan Forum Secretariat, which is sponsored by the China Association for Military Science and the China Institute for International Strategic Studies. Click here to read…

China’s employment situation better than expected in Q3, but challenges remain: Global Times
October 28, 2021

China’s employment situation in the third quarter was generally stable and better than expected, a spokesperson with the Ministry of Human Resources and Social Security (MOHRSS) said on Wednesday, while more still needs to be done given the rising uncertainties of the international environment and the uneven recovery of the domestic economy. Click here to read…

PLA attack, transport helicopters spotted near Taiwan for 1st time, ‘provide more tactical options’: Global Times
October 27, 2021

Joining fighter jets and special mission aircraft, attack and transport helicopters of the Chinese People’s Liberation Army (PLA) were spotted near the island of Taiwan in a drill for the first time on Tuesday, with military experts saying on Wednesday that choppers can provide more tactical options in landing operations, and this displayed the increased combat readiness of the PLA in the region. Click here to read…

2,918 Chinese entrepreneurs have net worth of over 2 billion yuan, says Hurun: Global Times
October 27, 2021

A total of 2,918 Chinese entrepreneurs who have a net worth exceeding 2 billion yuan are listed in the Hurun China Rich List 2021, and 520 of them belong to newcomers. Zhong Shanshan, 67, founder of beverage company Nongfu Spring, topped the list with a net worth of 390 billion yuan. The new-energy sector came under the spotlight in 2021 amid the country’s multiple efforts targeting peak carbon emissions and carbon neutrality, with eight of 10 fastest risers related to the sector. Zeng Yuqun, 53, chairman of CATL, an electric car battery provider, tripled his wealth to move to No.3 with 320 billion yuan. Click here to read…

U.S., Japan square off with China on maritime security amid tensions: Kyodo
October 28, 2021

The United States, China and Japan squared off over maritime security at a regional summit on Wednesday, with U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida taking part in the online meeting for the first time since they took office. The virtual gathering of the East Asia Summit took place as tensions between the United States and China have been intensifying recently over several issues in the Asia-Pacific region, such as the South and East China seas and the Taiwan Strait. Click here to read…

US has troops stationed on Taiwan, island’s leader Tsai Ing-wen confirms for first time: South China Morning Post
October 28, 2021

Taiwanese president Tsai Ing-wen said she believes that the United States would help to defend the island in the event of an attack by China, amid confusion about the US administration’s position on military intervention. Speaking to CNN in an interview aired on Wednesday, Tsai also confirmed for the first time that US troops were stationed on the self-governing island, explaining that Taiwan had a “wide range of cooperation with the US aiming at increasing our defence capability”. Click here to read…

Vegetables pricier than pork worry Chinese consumers as costs swell: Reuters
October 27, 2021

Vegetable prices are surging in China after heavy rain swamped crops this month, fuelling concern over food prices at a time when consumers must brace for a hike in energy costs in the run-up to winter. Unusually heavy rains drenched northern swathes of China in September and early this month, flooding the top vegetable-growing province of Shandong. “All the vegetables are dead in the ground,” said Zhou Rui, a farmer who cultivates about 7 hectares (17 acres) in the Juancheng county of the province. Click here to read…

Economic

Fight terror risks in overseas projects with shared intelligence, Chinese ex-security official says

Countries should step up intelligence sharing to protect overseas investments, according to a former senior Chinese public security official, as Beijing faces greater risks to its belt and road projects. “In the face of challenges, countries need to establish a concept of mutual security,” Chen Zhimin, China’s vice-minister for public security until 2017, told a panel organised by the Beijing-backed Boao Forum in Changsha, Hunan province, on Oct 25. “[Nations should] agree to share intelligence, rules, education and experiences – including hi-tech and big data components – on security matters, in order to achieve a new model of global development,” said Chen, also a former vice-minister of internet regulators the Cyberspace Administration of China. He is currently a member of the country’s top advisory body. China’s latest five-year plan identified “protecting the rights and interests of Chinese overseas investments” as a key goal to ensure national “economic security”, acknowledging that there were increasing risks and uncertainties regarding the safety of China’s wide range of overseas projects under its Belt and Road Initiative. Click here to read…

G-7 trade ministers call for ridding supply chains of forced labour

Ministers from the Group of Seven advanced economies agreed Oct 22 to seek to eliminate forced labour from global supply chains, taking a stance seen as in line with Western criticism of China’s treatment of Uyghur Muslims. The joint statement from the G-7 trade meeting in London marks the first time the group has endorsed import restrictions and other trade policy tools to stop forced labour. The ministers voiced concern about states imposing forced labour on vulnerable groups. While not calling out China by name, the statement follows months of Western denunciation and sanctions imposed on Chinese officials over alleged human rights abuses in the Xinjiang region. The group also seeks to promote due diligence by companies in order to identify and prevent human rights violations within supply chains. In addition, the G-7 ministers adopted digital trade principles to guide members on promoting the free transfer of data across borders. Ministers shared concerns about multinationals being compelled to keep servers in countries they operate in and called for a ban on forced disclosures of source codes. Click here to read…

China’s SOEs beat hamstrung private sector in profits

China’s state-owned enterprises have pulled ahead of the private sector in profitability this year, as private businesses grapple with an array of challenges including regulatory crackdowns, cash crunches and soaring material costs. Big state industrial companies logged 1.77 trillion yuan ($275 billion) in total profits for the first eight months of 2021, up 87% on the year, compared with a 34% rise to 1.64 trillion yuan for their private counterparts, government data shows. The category covers enterprises in manufacturing, mining and similar industries with more than 20 million yuan in annual revenue from their main operations. If this continues, the state sector could beat the private sector in full-year profits for the first time since the global financial crisis of 2008. The trend has raised alarms about the repercussions of President Xi Jinping’s emphasis on strengthening state enterprises, dubbed guojin min tui — “the state advances, the private sector retreats.” While Xi said in April 2020 that reform of state-owned companies was needed, he also asserted that the sector could not be “denied or diminished.” It also underlines the hurdles to China’s bid to join the Comprehensive and Progressive Agreement on Trans-Pacific Partnership, which bars members from favouring state enterprises. Click here to read…

Xi’s ‘Common Prosperity’ in Theory and Practice

The publication in the party’s theoretical journal, “Seeking Truth,” appears partly aimed at reassuring investors and entrepreneurs spooked by novel language about “rationally adjusting” excessive incomes in the original mid-August readout of Mr. Xi’s speech, which came at the height of Beijing’s campaign to rein in its internet giants. The expanded remarks still contain such language, but the tone and structure contain some marked differences. Mr. Xi forcefully addresses entrepreneurship right near the top, saying that “common prosperity depends on hard work” and innovation and that law-abiding entrepreneurs should be particularly encouraged. The newly released remarks also warn about the dangers of “welfarism” and government dependence—language that was absent from the original readout. In theory, there is a fair amount for investors to like here: most important, it shows that Mr. Xi understands the importance of incentives—and that the rapidly escalating regulatory campaign over the past year risks damaging entrepreneurship. The speech also fits with Beijing’s long standing skepticism about big outlays for social services, as opposed to infrastructure or carrots for businesses like cheap land. The problem, of course, is that this is all happening in the lead-up to the 20th Party Congress next fall. Click here to read…

China Plans Property-Tax Trials as It Targets Speculation

China said it would conduct five-year property-tax trials in some regions of the country as Beijing looks for ways to rein in real-estate speculation and distribute wealth more evenly. The National People’s Congress Standing Committee, the country’s top legislative body, passed the tax-pilot program on Oct 23, the official Xinhua News Agency reported. The State Council, China’s cabinet, is expected to disclose details in the next few months, including which regions this initiative will cover and how the tax rate will be set, people familiar with government deliberations said. Chinese leader Xi Jinping has long sought to impose a nationwide property tax to curb housing speculation, bring down runaway prices and reduce the financial burden on families already strained by rising education, medical and other costs. But his broad property-tax push has met heavy resistance from within the ruling Communist Party, including both the elites and its rank-and-file members. An initial proposal to test-run the tax in some 30 cities has been scaled back to around 10 cities, according to people familiar with the deliberations. A new law aimed at advancing the tax across the country likely won’t be finalized until around 2025, the last year of the current five-year development plan, the people said. Click here to read…

China’s Indonesian coal imports hit record amid power crisis, Southeast Asian nation now biggest supplier

Indonesia is now overwhelmingly China’s biggest overseas supplier of coal, with shipments hitting a record last month after Beijing loosened curbs on imports to tackle its power crisis. Cargoes of coking, thermal and brown coal from the Southeast Asian nation surpassed 21 million tonnes in September, from just over 17 million tonnes in August, and now account for about two-thirds of China’s total imports, according to customs data. Chinese buyers have been forced to tap other suppliers of the fuel to replace Australian exports banned almost a year ago after political relations with Canberra soured. But hopes that Mongolia could supply more coal – particularly the higher quality produced by Australia and used by steel mills – were dashed as coronavirus pandemic restrictions in China’s neighbour saw cargoes sink below 1 million tonnes, according to the data. Indonesia’s benchmark coal price has hit record levels, bolstered by a surge in demand since June, when Beijing pledged to raise imports in an ultimately unsuccessful attempt to head off the power crisis that is now gripping the country. Late last year, China struck a three-year deal with Indonesian miners for US1.5 billion of the fuel as Beijing sought long-term options to displace Australian supplies. Click here to read…

Japan to lobby Saudi, UAE, and other oil nations to boost supply

Japan will urge petroleum-producing nations to raise output and ease the soaring global oil prices that have hurt both corporate earnings and household budgets. The plan to lobby oil producers, in collaboration with the International Energy Agency, is based on directives by Prime Minister Fumio Kishida. Tokyo also looks to offer state support for affected industries, as officials from relevant ministries met Oct 18 to discuss ways to address the oil price rally. “The government as a whole will respond swiftly to make sure there is no disruption to industry or the daily lives of citizens,” said Chief Cabinet Secretary Hirokazu Matsuno, who attended the meeting. Tokyo will work with the IEA to ask Saudi Arabia, the United Arab Emirates and other major oil producers to boost output. Koichi Hagiuda, the trade and industry minister said after Oct 18’s meeting that he intends to talk with oil producing nations ahead of the OPEC Plus meeting set for early November. DaishiroYamagiwa, Japan’s economic revitalization minister also attended Oct 18’s meeting. Foreign Minister Toshimitsu Motegi spoke by phone Oct 18 with Kuwaiti counterpart Ahmad Nasser Al-Mohammed Al-Sabah, asking for the Persian Gulf country’s cooperation toward stabilizing the market including via greater crude production. Click here to read…

Semiconductor giant TSMC’s decision to cooperate with Washington’s chip data request fuels anger in China

The decision by Taiwan Semiconductor Manufacturing Co (TSMC) to comply with a US request for information has stirred anger and uneasiness in China over fears that Washington could use the information to sanction Beijing, even though the Taiwan chip maker said it will not reveal confidential client information to the US government. TSMC, the single-most important player in the global semiconductor industry, said in a statement on Monday that it will “respond to” a request by the US Commerce Department seeking information from companies in the chip supply chain, a list that also included South Korea’s Samsung Electronics and US chip firm Intel. While the US government said its request was aimed at finding out reasons for the chip shortage – and no Chinese company was directly involved – the move has raised alarm bells in China. Xi Chen, an academic committee member at Peking University’s Institute for Global Cooperation and Understanding, said earlier that the data could potentially help Washington impose sanctions on Chinese companies in a more precise way. The decision by TSMC to comply with US sanctions on Huawei Technologies Co devastated the Shenzhen-based company’s smartphone business. Click here to read…

Toyota testing hydrogen combustion engines in race cars

Toyota said Oct 25 it is testing hydrogen combustion engines in race cars as it works toward using the technology in commercial products. Such engines burn hydrogen as fuel instead of gasoline much like rockets. The Japanese automaker said testing the technology in race cars will allow it to collect data and try to fix problems on-site. Toyota Motor announced earlier that it was developing a hydrogen combustion engine, which Ford Motor and other automakers have also developed. Vehicles powered by such engines are different from fuel cell vehicles that use hydrogen to create electricity, and from electric or hybrid vehicles. ”We want to propose multiple options to meet regional needs,” Naoyuki Sakamoto, chief engineer of the hydrogen-powered engine Corolla model, said in an online news conference. Sakamoto declined to say when the hydrogen combustion engine may become a commercial product, acknowledging further development are needed to address its so far limited driving range. Infrastructure for fuelling such vehicles is another obstacle. One advantage of hydrogen engines is that minimal adjustments are needed from regular internal combustion engines, except for the fuel piping and injection systems. The use of hydrogen as fuel comes with some risk concerns, but hydrogen fuelling stations are operating across Japan, with no major accidents so far. Click here to read…

Biden and Democrats Push for Budget Deal This Week as Rifts Remain

President Biden and Democratic congressional leaders raced on Oct 25 to strike a compromise on a domestic policy and climate package, pushing for a vote within days even as critical disagreements remained over health benefits, paid leave, environmental provisions and how to pay for the sprawling plan. Negotiators were closing in on an agreement that could spend around $1.75 trillion over 10 years, half the size of the blueprint Democrats approved earlier this year, as they haggled with centrist holdouts in their party who are pressing to curtail the size of the bill. They have coalesced around a plan that would extend monthly payments to families with children, establish generous tax incentives for clean energy use and provide federal support for childcare, elder care and universal pre-kindergarten. An array of tax increases, including a new wealth tax for the country’s billionaires, would pay for the initiatives. But a final deal remained elusive amid disputes over the details of potential Medicare and Medicaid expansions, a new paid family and medical leave program, programs to combat climate change and a proposal to lower the cost of prescription drugs. Click here to read…

Saudi Arabia pledges 2060 target of net-zero emissions

One of the world’s largest oil producers, Saudi Arabia, announced Oct 23 it aims to reach “net zero” greenhouse gas emissions by 2060, joining more than 100 countries in a global effort to try and curb man-made climate change. The announcement, made by Crown Prince Mohammed bin Salman in brief scripted remarks at the start of the kingdom’s first-ever Saudi Green Initiative Forum, was timed to make a splash a little more than a week before the start of the global COP26 climate conference being held in Glasgow, Scotland. Although the kingdom will aim to reduce its emissions, Prince Mohammed said the kingdom would do so through a so-called “Carbon Circular Economy” approach. That approach focuses on still unreliable carbon capture and storage technologies over efforts to actually reduce global reliance on fossil fuels. The announcement only pertains to Saudi Arabia’s efforts within its national borders. Earlier this month, the United Arab Emirates — another major Gulf Arab energy producer — announced it too would join the “net zero” club of nations with a target to reach net-zero emissions by 2050. The UAE says it is home to three of the largest solar facilities in the world and is the first country in the Middle East to deploy nuclear power. Click here to read…

Strategic

Chinese, Russian navy operation cuts through 2nd Japan strait

Chinese and Russian naval vessels for the first time passed through a second strait in waters off the Japanese archipelago simultaneously on Oct. 22. A fleet of 10 naval vessels consisting of five from each country traversed the Osumi Strait, located between Kyushu and Tanegashima island, into the East China Sea, Japan’s Defense Ministry announced the following day. The same fleet on Oct. 18 moved through the Tsugaru Strait, separating the Japanese islands of Honshu and Hokkaido, into the Pacific Ocean, meaning it has now travelled halfway around the Japanese archipelago. As well as being the first time Chinese and Russian naval vessels have passed through the two straits at the same time, it is also unusual for such a large number of vessels to simultaneously sail through a strait in waters off the Japanese archipelago. The move was an apparent attempt to put military pressure on Japan, according to a Japanese government source. China and Russia are believed to be trying to counter repeated joint military drills Japan is conducting with the United States and other countries. Click here to read…

Wang Yi offers 5 suggestions on improving China-Japan ties at Beijing-Tokyo Forum

As next year marks the 50th anniversary of the normalization of diplomatic relations between China and Japan, Chinese State Councillor and Foreign Minister Wang Yi offered five suggestions to guide bilateral relations at the 17th Annual Beijing-Tokyo Forum via video in Beijing on Oct 25. He highlighted the importance of rebuilding mutual trust, upgrading cooperation, managing differences, expanding exchanges and enhancing coordination. Supported by China’s State Council Information Office (SCIO) and Japan’s Ministry of Foreign Affairs, and jointly held by the China Foreign Languages Publishing Administration and Japan’s think tank Genron NPO, the 17th Annual Beijing-Tokyo Forum opened on Oct 25 in Beijing and Tokyo at the same time in dual online and in-person formats. Issues from history, the Taiwan question and other issues bear on the political foundation of bilateral relations, said Wang. He urged the two sides to abide by the principles and spirit of the four political documents between China and Japan, warning that Japan should not be vague on the issues, let alone try to cross the bottom line. Second, China and Japan should upgrade cooperation to achieve higher levels of mutual benefits as the fundamentals of mutual needs and complementary advantages remain unchanged, said Wang, noting that the potential for cooperation is still huge. Click here to read…

Taliban to form new armed forces including former regime troops

Afghanistan’s Taliban-led government on Oct 25 announced it is to form new armed forces for the country including soldiers from the previous regime’s military. The former Afghan military and Western-backed government collapsed on Aug. 15 when President Ashraf Ghani fled Afghanistan as the Taliban took control in a lightning offensive while the US and its allies were withdrawing troops after 20 years on the ground. In September, the Taliban appointed an interim government in Afghanistan, declaring the country an Islamic emirate. Defense Minister Mullah Mohammed Yaqoob, the son of Taliban founder Mullah Omar, announced the formation of new armed forces on Oct 24, in an audio message released by the Defense Ministry. Taliban spokesman, Zabihullah Mujahid, told Arab News: “Army is a priority and urgent need of the country. The Islamic emirate would work on forming an empowered army that would be responsible for protecting Afghans and would have the ability to defend the peace of Afghanistan at any cost.” He said that the new army would be comprised of Taliban fighters and soldiers of the former regime. However, there was no comment on whether the formation of the new armed forces would be supported by other countries. Click here to read…

AUKUS spurs French strategic review with tilt toward Japan, India

France is reviewing its Indo-Pacific approach after being blindsided by the AUKUS alliance that scuttled its submarine deal with Australia, a French official said in Tokyo on Oct 19, with Paris keen to strengthen ties with Japan and India. Philippe Errera, the French Foreign Ministry’s director-general for political affairs and security, was visiting Japan with Alice Guitton, director-general for international relations and strategy at the Ministry for the Armed Forces, to meet with their Japanese counterparts and lay the groundwork for a “2+2” ministerial-level meeting by the year-end. France has also been boosting ties with India in recent years. In 2019, the two countries accelerated their strategic convergence with a two-day summit in Paris, which led to joint military exercises and India agreeing to buy French fighter jets under a contract worth 7.9 billion Euros ($9.2 billion). Together with Japan and India, “we note a convergent vision on the fact that the Indo-Pacific stakes are not reduced to military competition with China,” and should include areas such as economy and health, Errera said. For Paris, considered the most proactive proponent of an Indo-Pacific approach within the European Union, the increasingly tight-knit Anglosphere may be a motivation to shore up its own security presence. Click here to read…

Why Dubai plans to build infrastructure in Kashmir

The government of Dubai, one of the UAE’s seven emirates, recently inked an agreement with India to ramp up infrastructure investment in Jammu and Kashmir. Indian Prime Minister Narendra Modi’s government said the deal will see Dubai building infrastructure in the troubled region including industrial parks, IT towers, multi-purpose towers, logistics centres, a medical college and a specialized hospital. “The world has started to recognize the pace (at) which Jammu and Kashmir is traversing on the development bandwagon,” Indian Trade Minister Piyush Goyal said in a statement. Sultan Ahmed Bin Sulayem, chairman and CEO of DP World Dubai, told media in Srinagar: “We are committed to connect Jammu and Kashmir to the rest of India. We know how to do that, we know the obstacles.” No figure for the value of the accord was given but Sulayem pointed out that the investments by his firm will be part of the Modi government’s “Make in India” initiative. This is the first investment agreement by a foreign government involving Kashmir since New Delhi scrapped the region’s special status in 2019. Click here to read…

Myanmar threatens to skip ASEAN summit over junta chief’s exclusion

Myanmar’s junta threatened on Oct 25 to skip an Association of Southeast Asian Nations (ASEAN) summit after the bloc said that the country’s military chief could not attend over doubts about the government’s commitment to defusing a bloody crisis. Myanmar has been in turmoil since the generals ousted civilian leader Aung San Suu Kyi in a February coup, triggering nationwide protests and a violent crackdown on dissent. Earlier this month, ASEAN – under international pressure to broker a diplomatic solution to the conflict – excluded junta chief Min Aung Hlaing from a forthcoming leaders’ summit. The exclusion from the Oct 26 to Oct 28 meeting in Brunei “broke ASEAN principles”, junta spokesman Zaw Min Tun told local media on Oct 25. He confirmed that the bloc had instead invited a “non-political” representative – director general of the foreign affairs ministry Chan Aye. “But we aren’t sure whether to attend or not … Attending it could affect our country’s sovereignty and image,” the spokesman said. ASEAN issued the rare rebuke to Myanmar after the junta rebuffed requests that a special envoy meet with “all stakeholders” in the country – a phrase seen to include deposed leader Aung San Suu Kyi. Click here to read…

U.S. National Security Advisor met representatives of Myanmar’s shadow government

U.S. National Security Advisor Jake Sullivan met on Oct 26 with representatives of Myanmar’s National Unity Government (NUG), set up by opponents of army rule, the White House said late on Oct 26. In the virtual meeting, Sullivan reiterated continued U.S. support for the pro-democracy movement in Myanmar and discussed ongoing efforts to restore the country’s path to democracy with NUG representatives Duwa Lashi La and Zin Mar Aung, the White House said in a statement. Sullivan expressed concern over the military’s violence and said “the U.S. will continue to promote accountability for the coup”, according to the White House. Protests and unrest have paralyzed Myanmar since the Feb. 1 coup, with the military accused of atrocities and excessive force against civilians. The junta blames the unrest on “terrorists” allied with the shadow government. Recognizing Myanmar’s junta as the country’s government would not stop growing violence, the outgoing United Nations special envoy on Myanmar said earlier on Oct 26. Click here to read…

Kishida orders Japan NSC to weigh strike capability after North Korean launch

Japan’s National Security Council will consider having the country secure the capability to strike enemy missile bases in response to an imminent attack, Prime Minister Fumio Kishida said Oct 19 after the group met to discuss North Korea’s latest ballistic missile launch. “We reaffirmed that we will consider all possible options, including enemy base strike capabilities,” in a planned update of Japan’s national security strategy, Kishida told reporters. Tokyo is analyzing Oct 19’s launch by Pyongyang with an eye on the possibility that the test involved a submarine-launched ballistic missile, he said. “For the security of Japan and the region, we cannot overlook North Korea’s striking progress in nuclear and missile-related technology,” Kishida said. Kishida and Chief Cabinet Secretary Hirokazu Matsuno were away from Tokyo at the time of the launch for the first day of campaigning ahead of this month’s lower house parliamentary election. Both cut short their speaking schedules and returned to the capital. The prime minister said Deputy Chief Cabinet Secretary Yoshihiko Isozaki was on call to handle any problems that arose in his absence. Click here to read…

N Korea rattles from walking skeletons, not sabres

It’s probably no coincidence that North Korea’s test of a submarine-launched ballistic missile on Oct 19 came just as the country’s military was reported to have begun investigating soldiers’ “nutritional status.” After all, if the “human bullets” who have vowed to protect the leader are getting so few calories it affects their readiness to fight, it makes sense to distract enemies from that sign of national weakness and focus on a new and shiny, non-human projectile that will give the enemies something to worry about. Seoul-based Daily NK reported that it had learned from “a source in the North Korean military” that leader Kim Jong Un “issued an order on October 9 calling for improvements in ‘logistics and soldiers’ health’ during October and November.” This is the period when the military is preparing for the winter months and for winter training. The General Political Bureau and Ministry of Defense in response to Kim’s order are investigating not only wintertime food supplies for the Korean People’s Army (KPA), but also “the state of ‘frailty’ among soldiers due to malnutrition,” the specialty news organization said. Click here to read…

US and Taiwanese officials meet to discuss ‘meaningful’ UN role for island

US and Taiwanese officials discussed plans to allow the island to “participate meaningfully” at the United Nations on Oct 22 in the latest move to upgrade Washington’s relationship with the island. The US State Department said in a statement released on Oct 24 that “high-level representatives” of the US State Department and Taiwan’s foreign ministry had discussed “expanding Taiwan’s participation at the United Nations and in other international fora”. “The discussion focussed on supporting Taiwan’s ability to participate meaningfully at the UN and contribute its valuable expertise to address global challenges, including global public health, the environment and climate change, development assistance, technical standards, and economic cooperation,” the statement said. “US participants reiterated the US commitment to Taiwan’s meaningful participation at the World Health Organization and UN Framework Convention on Climate Change and discussed ways to highlight Taiwan’s ability to contribute to efforts on a wide range of issues,” it continued. The talks came just days ahead of President Xi Jinping’s speech at the UN on Oct 25 to mark the 50th anniversary of the People’s Republic taking China’s seat at the UN. Taiwan, under the name of the Republic of China, had held the Chinese seat until then. Click here to read…

Taiwan rides soft power wave as democracies sour on China

Taiwan cannot match the economic or military might of China. Yet as Beijing doubles down on its belligerent words and actions toward its smaller neighbour, Taiwan is reaping the benefits of soft power as China’s image declines. Harvard University announced last week it has relocated its overseas Mandarin program from Beijing to Taipei — a shift that its student paper reported was “due to a perceived lack of friendliness from the host institution, Beijing Language and Culture University.” Harvard’s decision could spur other universities with programs in China to make similar moves and comes at a time when countries and organizations are beginning to recalibrate their approach to China and reconsider their view of Taiwan. Some in Beijing appear aware that China has a major image problem — one that is at least partly of its own doing. Three days after Harvard’s announcement, Fu Ying, a former diplomat and current chair of the National People’s Congress Foreign Affairs Committee, gently suggested in a People’s Daily column on Oct 21 that China could improve its image abroad. Carefully quoting Chinese leader Xi Jinping throughout, Fu’s column could be interpreted as a subtle critique of the more combative diplomatic posture Xi has encouraged. Click here to read…

EU-Taiwan relations: MEPs push for stronger partnership

MEPs hail Taiwan as a key EU partner and democratically in the Indo-Pacific, one that contributes to maintaining a rules-based order in the midst of an intensifying rivalry between the major geopolitical actors in the region. To step up cooperation, the text adopted by MEPs stresses the urgent need to launch an “impact assessment, public consultation and scoping exercise” for an EU-Taiwan Bilateral Investment Agreement (BIA). Members highlight the importance of trade and economic relations between the EU and Taiwan, including on matters relating to multilateralism and the World Trade Organization, technology such as 5G, public health, and essential cooperation on critical supplies like semiconductors. The report expresses grave concern over China’s continued military belligerence, pressure, assault exercises, airspace violations and disinformation campaigns against Taiwan. MEPs urge the EU to do more to address these tensions, to protect Taiwan’s democracy, and the island’s status as an important EU partner. Parliament insists that any change to mainland China-Taiwan cross-strait relations must be neither unilateral nor against the will of Taiwanese citizens. Finally, Members propose changing the name of the European Economic and Trade Office in Taiwan to ‘European Union Office in Taiwan’ in order to reflect the broad scope of EU-Taiwanese ties. Click here to read…

China law tightens land borders amid regional tensions

China’s top legislative body on Oct 23 passed a law to strengthen the country’s land borders amid rising tensions with India over disputed territory and concerns over a possible influx of Islamic extremists from Afghanistan. Under the new law, the People’s Armed Police Force and the Public Security Bureau, which are in charge of maintaining public order in China, can be mobilized to guard borders in addition to the People’s Liberation Army. The forces will look to handle serious incidents, terrorism and illegal crossings in border regions. The law also stipulates that weapons can be used against people illegally crossing borders if they engage in violence, as well as banning the use of drones and model airplanes near borders without permission. The law, passed by National People’s Congress Standing Committee, specifies that infrastructure facilities for transport, communication, surveillance and defense can be built on the Chinese side of its borders. It also stipulates that no organization or individual can build durable structures near borders without China’s approval. A provision on the protection of water resources is believed to have been made with India in mind. The law states that the national and local governments are obliged to take measures to protect the stability of trans-boundary rivers and lakes. Click here to read…

US nearing a formal agreement to use Pakistan’s airspace to carry out military operations in Afghanistan

The Biden administration has told lawmakers that the US is nearing a formalized agreement with Pakistan for use of its airspace to conduct military and intelligence operations in Afghanistan, according to three sources familiar with the details of a classified briefing with members of Congress that took place on Oct 22 morning. Pakistan has expressed a desire to sign a Memorandum of Understanding (MOU) in exchange for assistance with its own counterterrorism efforts and help in managing the relationship with India, one of the sources said. But the negotiations are ongoing, another source said, and the terms of the agreement, which has not been finalized, could still change. The US military currently uses Pakistan’s airspace to reach Afghanistan as part of ongoing intelligence-gathering efforts, but there is no formal agreement in place to ensure continued access to a critical piece of airspace necessary for the US to reach Afghanistan. The air corridor through Pakistan to Afghanistan may become even more critical if and when the US resumes flights into Kabul to fly out American citizens and others who remain in the country. Click here to read…

President Erdogan, cabinet discuss expulsion of 10 allied envoys

Turkish President Recep Tayyip Erdogan on Oct 25 backed down from his threat to expel 10 Western ambassadors over their joint statement of support for a jailed civil society leader. Erdogan said during the weekend he had ordered the envoys to be declared persona non grata for seeking the release of prominent philanthropist Osman Kavala, 64, detained for four years on charges of financing protests and involvement in an attempted coup. He spoke after the United States and several of the other concerned countries issued identical statements saying they respected a UN convention that required diplomats not to interfere in the host country’s domestic affairs. Erdogan said the new statement “shows they have taken a step back from the slander against our country”, adding: “They will be more careful now.” The envoys from Canada, Denmark, France, Germany, the Netherlands, Norway, Sweden, Finland, New Zealand and the US called last week for a just and speedy resolution to Kavala’s case, and for his “urgent release”. Erdogan said – after chairing a cabinet meeting devoted to the crisis – spoke of his “duty as head of state to give the necessary response” to foreign violations of Turkey’s sovereign rights. Click here to read…

Sudan security forces arrest PM Abdalla Hamdok, ministers

Security forces in Sudan have arrested Prime Minister Abdalla Hamdok and several other members of the country’s civilian leadership, the information ministry said, as a military officer dissolved the transitional government. Abdel Fattah al-Burhan, a general who headed the Sovereign Council, a power-sharing ruling body, announced a state of emergency across the country and dissolved the council and the transitional government. Hamdok was arrested and moved to an undisclosed location after refusing to issue a statement in support of the coup, said the information ministry, still apparently under the control of Hamdok’s supporters. The arrests on Oct 24 prompted thousands of people to take to the streets in the capital, Khartoum, to demand the release of the political leaders amid reports of clashes and gunfire. Soldiers were stationed on the streets of Khartoum and restricted civilians’ movements, as protesters opposed to the military takeover carried the national flag and burned tyres across the city. Footage broadcast by the Al Jazeera Mubasher television channel showed protesters moving past barricades and entering the street surrounding military headquarters in Khartoum. The footage also showed soldiers standing by as protesters passed them and marched down the street. Click here to read…

Bangladesh police arrest 450 people linked to attacks on Hindu homes and religious sites in worst unrest for over a decade

Bangladeshi police have arrested 450 people following attacks against Hindus in the Muslim-majority country in some of the worst unrest in over a decade, which has seen Hindu religious sites vandalized and homes destroyed. Authorities logged 71 cases linked to violence during the major Hindu festival of Durga Puja across different parts of Bangladesh, the police’s assistant inspector general said on Oct 18. In the last five days 450 people have been arrested in connection with attacks on puja venues and temples, as well as Hindu homes and businesses, and for spreading rumours on social media during the religious holiday, local media reported. The senior police official added that the number of arrests and incidents could increase as investigations are still ongoing. The United Nations’ resident coordinator in Bangladesh, Mia Seppo, condemned the turbulence on the same day: “Recent attacks on Hindus of Bangladesh, fuelled by hate speech on social media, are against the values of the Constitution and need to stop”. She also called for the government to ensure an impartial probe and the protection of minorities. Click here to read…

EU says to hold nuclear talks with Iran in Brussels ‘this week’

The EU’s top negotiator will meet his counterpart from Tehran this week in Brussels for talks on restarting negotiations over Iran’s nuclear deal, a spokesman for the bloc said on Oct 25. The EU and world powers are scrambling to try to get negotiations in Vienna aimed at reviving the 2015 accord back on track after the election of a hard-liner in Tehran. Iran’s chief negotiator on the deal, Deputy Foreign Minister Ali Bagheri, wrote on Twitter that he would be in Brussels on Oct 27 “to continue our talks on result-oriented negotiations.”EU spokesman Peter Stano said the meeting would involve the bloc’s lead negotiator Enrique Mora, who visited Tehran earlier this month to push Iran to restart full negotiations. Stano said the EU’s diplomatic service was “sparing no efforts to resume talks of all parties in Vienna.” But the Vienna-based talks through intermediaries made little headway, before being interrupted by the election of hard-liner Ebrahim Raisi as Iran’s president and suspended for the last four months. The EU acts as coordinator for the deal that also involves Britain, France, Germany, China and Russia. Click here to read…

How Egypt turned the page with a comeback on the regional stage

Egypt has experienced a decade of upheaval since the overthrow of Hosni Mubarak in 2011, contending with two revolutions, environmental pressures, and more recently the economic challenges of COVID-19. And yet, this most populous of Arab countries, straddling the African and Asian continents, has emerged from the turbulence with a new sense of purpose and a desire for greater engagement with the region and the world. It has been announced that Egypt is a nominee to host the COP27 UN climate conference for 2022 — a distinction that seemed unthinkable just a few years ago. This October not only marks the 48th anniversary of the 1973 war with Israel; 40 years ago on October 6, President Anwar Sadat was assassinated by Islamist extremists during the annual victory parade in Cairo. For many in the Middle East, Sadat’s positive legacy is a work in progress: The Egypt-Israel peace process, Egyptian economic development and political liberalization, the Palestinian peace process, and overcoming the challenge of violent extremism. Egypt struck the jackpot in 2015 with the discovery of a giant reservoir known as Zohr, which has developed into one of the largest single gas fields in the Middle East. Click here to read…

Medical

EMA greenlights new Pfizer-BioNTech manufacturing sites and Covid vaccine formula as it mulls extending jab for ages 5-11

The European Medicines Agency (EMA) has approved two additional manufacturing sites for the production of Pfizer-BioNTech’s Covid vaccine, as well as a new formula, as it considers rolling out the shots for those aged five to 11. In a statement issued on Oct 18, the EU’s drug regulator revealed that its human medicines committee (CHMP) has given its seal of approval for two additional manufacturing sites for the production of Comirnaty, the Covid-19 jab developed by the US-German partnership of Pfizer and BioNTech. The agency also said that the CHMP “approved a ready-to-use formulation of Comirnaty” with changes to “provide improved storage, transport and logistic options for vaccine distribution and administration.” The new formulation will be available in a phased rollout starting early next year. In a separate notice on Oct 18, the EMA said it has started evaluating an application to extend the use of Comirnaty to minors aged between five and 11. The watchdog said it will review data on the jab, including an ongoing clinical study conducted on this age group in order to make the decision. This will then be forwarded to the European Commission, which will make a final ruling. Click here to read…

China battles new COVID-19 outbreak with eye on Beijing Winter Olympics

Tens of thousands of people in northern China were placed under strict stay-at-home orders on Oct 25 as authorities sought to stamp out a growing COVID-19 outbreak in the run-up to the Beijing Winter Olympics. Residents of the Chinese capital were also advised not to leave the city unless necessary, although regular transport services out of the city continued as normal. China reported 39 new cases on Oct 25, bringing the tally from the latest Delta variant-linked outbreak to more than 100 cases over the past week. The numbers are extremely low compared with most other places in the world, but China has pursued a zero-case strategy throughout the pandemic and authorities are determined to stamp out the latest outbreak with the Winter Olympics just over 100 days away. Several housing compounds in the capital have been locked down, and organizers on Oct 24 indefinitely postponed a marathon at which 30,000 runners were expected. And at a press briefing on Oct 24, Xu Hejian, vice minister of Beijing’s publicity department, advised people against large gatherings and “unnecessary” travel out of the capital. Click here to read…

Some Russian regions shut workplaces as daily COVID-19 cases hit new peak

Russia reported its highest single-day COVID-19 case tally since the start of the pandemic on Oct 25 as some regions imposed a workplace shutdown to combat a surge in infections and deaths. Faced with worsening disease rates and frustrated by the slow take-up of Russia’s Sputnik V vaccine by its own population, authorities are introducing stricter measures this week to try to slow the spread of the pandemic. President Vladimir Putin last week declared that Oct 30 to Nov 7 would be paid non-working days but said every region could extend that period or start it earlier depending on the epidemiological situation. Six regions, including the Samara and Perm regions east of Moscow, began their non-working days on Monday (Oct 25), TASS news agency reported. From Oct 28, Moscow will introduce its tightest lockdown measures since June 2020, with only essential shops like supermarkets and pharmacies remaining open. Authorities in St Petersburg, Russia’s second-largest city, said COVID-19 restrictions would not be lifted until at least 80 per cent of its population was vaccinated, RIA news agency reported. Nationwide, only about a third of the population has been inoculated. Click here to read…

Economic

China’s Xi calls for progress on property tax in drive for prosperity

In an essay in the ruling Communist Party journal Qiushi, published by the official Xinhua news agency on Oct 15, Xi called for China to “vigorously and steadily advance” legislation for a property tax. China has mulled such a tax for over a decade but faced resistance from stakeholders including local governments themselves, who fear it would erode property values or trigger a market sell-off. Such a tax could curb rampant speculation in the housing market, which is currently under intense global scrutiny as developer China Evergrande Group struggles with a debt crisis. Xi also warned against government over-promising on social welfare amid a push to achieve what he called “common prosperity” by mid-century.”Common prosperity” is a broad policy drive to narrow the gap between rich and poor. It has involved a wave of regulatory crackdowns on excesses in industries including technology and private tuition. The gap between people’s income and consumption should be narrowed to a “reasonable range” by mid-century, Xi said. But Xi also said that the government should not make promises it could not deliver on and avoid the “trap” of “welfarism” and helping the lazy. “The government cannot take care of everything,” he said. Click here to read…

China’s Li Keqiang acknowledges slowing economic growth, but says Beijing has the ‘tools’ to cope with headwinds

China has “adequate tools” to tackle the economic challenges facing the country, including the nation’s current power crisis and high commodity prices, Premier Li Keqiang said on Oct 14. Though economic growth has slowed in the third quarter due to a number of factors, the government was confident China could meet its growth target of “above 6 per cent” for 2021, Li said at the opening of the Canton Fair in the southern manufacturing hub of Guangzhou. “We have adequate tools in our toolbox to cope with such challenges, including the energy and electricity supply strains,” he said, adding policymakers would also strive to keep inflation in check. China would promote innovation in cross-border e-commerce and logistics and boost international cooperation in trade digitisation, including by building a number of related enterprises in the Greater Bay Area. The provincial secretary for Guangdong read out a letter from President Xi Jinping in which he said China is willing to join hands with the rest of the world to uphold true multilateralism and build an open international economy. Before Covid-19, the 2019 spring session of the trade expo attracted 195,454 foreign buyers from 213 countries and regions across the world. The top five sources of buyers were from Hong Kong, India, the United States, South Korea and Thailand. Click here to read…

Kishida launches flagship panel to look into wealth redistribution

Japan’s new Prime Minister Fumio Kishida launched a flagship council on Oct 15 to work out a strategy to tackle wealth disparities and redistribute wealth to households, in what he describes as a “new form of capitalism.” The move is a crucial part of Kishida’s economic policy that combines the pro-growth policies of former premier Shinzo Abe’s “Abenomics” stimulus measures and efforts to more directly shift wealth from companies to households. It also came in the wake of Kishida’s decision on Oct 14 to dissolve parliament and set the stage for an election where fixing the pandemic-hit economy will be the focus. “In order to achieve strong economic growth, it’s not enough to rely just on market competition. That won’t deliver the fruits of growth to the broader population,” Kishida told a news conference on Thursday, calling for the need for stronger government-driven steps to distribute more wealth to households. The panel will hold its first meeting later this month and aim to come up with interim proposals by year-end so they can be reflected in tax reform discussions for next fiscal year, Economy Minister Daishiro Yamagiwa told reporters on Oct 15. Click here to read…

Gas Crisis Prompts Fresh Proposals From EU

The European Union is considering new measures, including joint purchases of gas to build up the bloc’s strategic reserves, to help alleviate future energy crises like one the continent now faces. The European Commission, the EU’s executive arm, laid out various actions on Oct 13 that could be taken at EU or national level to prevent energy price shocks. The measures include emergency income support for families who can’t afford their energy needs, tax and levy cuts, industry-wide support for companies and efforts to work with international partners on gas supplies to ease price pressures. EU Energy Commissioner Kadri Simson said the bloc was tightening its surveillance work alongside member states to clamp down on any possible gas market “manipulation or speculation”. The Commission is also tabling ideas for steps the EU might implement in the coming months to help cushion future supply shocks. Ms. Simson said the EU would also look at voluntary joint procurement of gas to build up storage reserves, which currently cover around 20% of the EU’s annual demand. She ruled out for now setting minimum storage requirements for gas—as there currently are for oil reserves. Click here to read…

Inflation Surges Worldwide as Covid-19 Lockdowns End and Supply Chains Can’t Cope

Rising inflation is triggering anxiety around the world as a surge in demand following the easing of Covid-19 lockdowns has been confronted by supply bottlenecks and rising prices of energy and raw materials. The sharpest consumer-price increases in years in many countries have evoked different responses from central banks. More than a dozen have raised interest rates but two that haven’t are those that loom largest over the global economy: the Federal Reserve and the European Central Bank. Their differing responses reflect differences in views about whether the pickup in prices will feed further cycles of inflation or will instead peter out. Which view is right will do much to shape the trajectory of the global economy over the next few years. The large central banks are relying on households showing faith in their track records of keeping inflation low, and the expectation that there are enough under-utilized workers available to keep wage rises in check. Other monetary authorities aren’t sure that they have yet earned that kind of credibility as inflation. In poorer countries, a larger share of spending usually also goes to essentials such as food and energy that have seen the largest price rises, so policy makers are quicker to tamp down on inflation. Click here to read…

G-20 pledges help for Afghan humanitarian crisis at special summit

The Group of 20 major economies is determined to tackle the humanitarian crisis in Afghanistan, even if it means having to coordinate efforts with the Taliban, Italian Prime Minister Mario Draghi said on Oct 12 after hosting an emergency summit. U.S. President Joe Biden, Indian Prime Minister Narendra Modi and many European leaders took part, but Chinese President Xi Jinping and Russian President Vladimir Putin did not dial in, suggesting differing international positions on the emergency. Draghi said the absence of the latter two leaders did not undercut the importance of the meeting organized by Italy, the current G-20 chair. “This was the first multilateral response to the Afghan crisis … multilateralism is coming back, with difficulty, but it is coming back,” Draghi said. There was unanimous agreement among the participants about the need to alleviate the crisis in Afghanistan, where banks are running out of money, civil servants have not been paid and food prices have soared, leaving millions at risk of severe hunger. Much of the aid effort will be channelled through the United Nations, but there will also be direct country-to-country assistance, despite a refusal by most states to officially recognize the hard-line Taliban government. Click here to read…

G7 finance officials say CBDCs should support, ‘do no harm’ to monetary and financial stability

G7 finance officials on Oct 13 endorsed 13 public policy principles for retail central bank digital currencies, saying they should be grounded in transparency, the rule of law and sound economic governance, the US Treasury Department said. “Innovation in digital money and payments has the potential to bring significant benefits but also raises considerable public policy and regulatory issues,” Group of 7 (G7) finance ministers and central bankers said in a joint statement. “Strong international coordination and cooperation on these issues helps to ensure that public and private sector innovation will deliver domestic and cross-border benefits while being safe for users and the wider financial system.” The finance officials met in person, with some joining by video, in Washington on Oct 13 during the annual meetings of the International Monetary Fund and World Bank under the leadership of British Finance Minister Rishi Sunak. Any CBDC must support, and ‘do no harm’ to, the ability of central banks to fulfil their mandates for monetary and financial stability. In their joint statement, the G7 officials said central bank money in the form of central bank digital currencies, or CBDCs, would complement cash and could act as a liquid, safe settlement asset and an anchor for the payments system. Click here to read…

‘Made in China’ chip drive falls far short of 70% self-sufficiency

The Chinese government’s goal of meeting 70% of its semiconductor needs through domestic supply remains a long way off, private-sector research shows, with an estimated self-sufficiency rate of 16% last year despite an all-out government push to boost production. The government has laid out a slew of measures to achieve one of President Xi Jinping’s policy priorities, including stepping up investment by state-backed funds focused specifically on the industry. The largest of these is the China Integrated Circuit Industry Investment Fund, dubbed the “Big Fund,” set up in the fall of 2014 and tasked with supporting Made in China 2025. The Big Fund has boosted the profile of NAND flash-memory maker Yangtze Memory Technologies. It has also invested heavily in material and equipment supply chains for Semiconductor Manufacturing International, or SMIC, helping to grow the company into a leading Chinese chip foundry. The government also rolled out tax and other incentives for chipmakers last year. Yet China sourced only 16% of its semiconductors domestically last year, data from market research firm IC Insights shows. The figure is even lower, at 6%, after excluding foreign companies with facilities in China, such as Taiwan Semiconductor Manufacturing, Samsung Electronics and SK Hynix. Click here to read…

Indonesia turns to state coffers as China-led rail project’s costs soar

When Indonesia awarded the contract for the Jakarta-Bandung high-speed railway to a Chinese consortium six years ago, the project was supposed to be completed by 2018 with no financial contributions or guarantees required from the Indonesian government. But with construction years behind schedule and billions of dollars over budget, President Joko “Jokowi” Widodo issued a decree Sept. 6 that lets the government put state funds into the project — negating one of the biggest perks that had led Indonesia to choose the Chinese proposal over a Japanese alternative. Much of the rail link’s woes stem from poor initial planning, which failed to identify all the ways the project could go wrong. Indonesia originally expected construction to cost $5.5 billion but had increased its projection to $6.07 billion as of January, five years since the project broke ground. A more recent review by Kereta Cepat Indonesia China, a joint venture among Indonesian state-owned enterprises, Chinese rail companies and the operator of the project, pegged the cost at no less than $7.97 billion. Before China secured the project, Japan had proposed building a shinkansen-style rail link from Jakarta to Bandung costing $5.29 billion at current rates, via 40-year official development assistance (ODA) loans. Click here to read…

Japan needs secret patents to guard national security: LDP’s Amari

Japan needs a way to keep patents with national security implications from being made public, the ruling Liberal Democratic Party’s new secretary-general told Nikkei on Oct 12, bringing intellectual property into Prime Minister Fumio Kishida’s economic security push. This should be included in economic security legislation set to be submitted to parliament in 2022, Akira Amari said, warning that current law could “become an obstacle to securing a technological advantage.” While patent filings in Japan are generally made public after 18 months, other countries can block the release of applications involving technology with potential military uses, to keep them out of the hands of foreign countries or terrorist groups. In certain cases, the authorities provide compensation for forgone revenue from licensing, for example. Amari also advocated replacing nuclear power facilities nearing the end of their 40-year life span with small modular reactors, which are reputed to be safer and to take less time to build. The latest draft of the government’s basic energy plan calls for nuclear to be 20% to 22% of the power generation mix in fiscal 2030 but provides no details on the number of facilities needed for that goal. Click here to read…

Nuclear hawks under Kishida threaten Suga’s renewables push

Pro-nuclear lawmakers now hold key positions under Prime Minister Fumio Kishida, sparking concern that he will stray from the prior administration’s focus on renewables to help achieve “net zero” greenhouse gas emissions by 2050. New ministers in charge of Japan’s efforts to fight climate change and energy issues under the Kishida administration have vowed to stick with the net zero targets. In October 2020, then Prime Minister Yoshihide Suga pledged to achieve the goal of net zero greenhouse gas emissions by 2050 amid fanfare. He upped the ante in April by announcing that Japan would aim for a 46-percent reduction by 2030 from fiscal 2013 levels in the run-up to a session of the United Nations Framework Convention on Climate Change. Japan had previously targeted a 26-percent reduction. The Suga administration also spelled out the principle of prioritizing renewables such as solar and wind power over all other energy sources in government programs. The new Basic Energy Plan drafted by the Suga administration made no mention of nuclear power-related projects despite pressure from pro-nuclear lawmakers within the LDP and the nuclear industry. LDP lawmakers who support nuclear energy are unhappy about the Basic Energy Plan, which said Japan will “reduce its dependence on nuclear energy as much as possible.” Click here to read…

Strategic

US accuses China of deviating from ‘minimal nuclear deterrence’ strategy

China is deviating from its minimal nuclear deterrence strategy, the US State Department charged on Oct 18, after a report that Beijing had recently tested a nuclear-capable hypersonic missile. “We are deeply concerned about the rapid expansion of the PRC’s [People’s Republic of China’s] nuclear capabilities, including its development of novel delivery systems,” State Department spokesman Ned Price said at a briefing about a Financial Times report on Oct 16 that China had launched a nuclear-capable hypersonic missile in August. Denying the FT report earlier on Oct 18, a Chinese foreign ministry spokesman called the launch “a routine test of a space vehicle to verify the technology of their reusability” and said that the launched object “was not a missile” with a military purpose. Price declined to comment on what information the US government had concerning the test but appeared to dismiss any attempts to play down its significance. He cited a US count of “at least” 250 ballistic missile launches by China in the nine months through September. “This is especially concerning … given the PRC’s lack of transparency into its evolving nuclear posture. Click here to read…

Time for a harder defence line on China’s borders amid ‘challenges on almost every side’

China faces increasingly serious challenges at its land and sea borders on almost every side and must urgently reinforce its defences in these regions, according to a Chinese military researcher. The assessment from Ouyang Wei, a retired professor with the PLA National Defence University, comes as the US steps up its military presence in the South China Sea and the Taiwan Strait, and uncertainties grow on China’s land borders with India, Afghanistan, Myanmar and North Korea. In a report published by Beijing-based think tank the Grandview Institution, Ouyang said the country was facing encroachment, secession and terrorism in some border areas. “The struggle to safeguard national unity and territorial integrity, to fight against secession and terrorism in border areas, tends to be a long game, and will be even more so now with a new period of instability in the Taiwan Strait,” he said. Ouyang said that to address the challenges, China could upgrade defence infrastructure along the coast, including its air defence identification systems and underwater warning facilities. Click here to read…

Israel claims ‘right’ to strike Iran ‘at any moment’ to prevent it from obtaining nukes, FM Lapid says after meeting with Blinken

Israel reserves the right to attack Iran at any time of its choosing, under the pretext of stopping it from acquiring a nuclear weapon, Tel Aviv’s FM Yair Lapid said after meeting with his American and Emirati counterparts. Addressing reporters after a sit-down with US Secretary of State Antony Blinken and United Arab Emirates Foreign Minister Abdullah bin Zayed in Washington on Oct 13, Lapid insisted that Tehran must not be allowed to obtain the bomb, saying the issue was at the “center” of his visit. Though Iran has long maintained it has no interest in developing nukes, Lapid vowed that Israel would stop its supposed “race to the bomb” by any means necessary. “Israel reserves the right to act at any given moment and in any way. That is not only our right, but also our responsibility,” he said. “Iran has publicly stated it wants to wipe us out. We have no intention of letting this happen.” While the FM also spoke of improved ties with Arab neighbours through a series of normalization deals struck last year and noted that Israel had “turned the cold peace with Egypt and Jordan into a warm peace,” much of his prepared remarks focused on Iran. Click here to read…

Israel greenlights deal to double freshwater supply to Jordan in major new sales agreement between the two states

Israel’s minister of infrastructure, energy and water, Karine Elharrar has announced that Tel Aviv has formally signed off on a deal to double its freshwater supply to Jordan, in a bid to bolster “good neighbourly relations.” The deal comes months after Israel announced plans to sell 50 million cubic meters of water to Jordan, as part of renewed efforts to build cooperation between the neighbouring states by addressing a major area of disagreement which has persisted since the 1994 peace deal. Having travelled to Jordan for a signing ceremony, Elharrar said in a tweet that the deal was “an unequivocal statement” that Tel Aviv wants to secure “good neighbourly relations” with Amman. Landlocked Jordan, much of whose lands are desert, is believed to be the second-most water-insecure country in the world, according to the US-based think tank Century Foundation. The country has relied on water-supply cooperation with Israel and its antecedents dating back over a hundred years. Under the 1994 peace deal agreed between them, Israel agreed to sell Jordan 45 million cubic meters of water a year at a reduced price, with more available at 65 cents per cubic meter for one year, and then at a higher price again for a further two years. Click here to read…

Iran, Venezuela to sign 20-year cooperation accord

Iran will sign a 20-year cooperation accord with Venezuela when President Nicolas Maduro visits Tehran “in the next few months”. In a joint press conference with his Venezuelan counterpart Felix Plasencia in Tehran on Oct 18, Iran’s Foreign Minister Hossein Amirabdollahian announced the news and added that a joint economic cooperation commission, which will be formed in Iran’s capital before the end of the year which, will finalise the details of the agreement.“All of this confirms that relations between the two countries are on the rise,” Amirabdollahian said, adding that some of the agreements made earlier on cooperation on a wide range of issues, including energy, are currently being implemented. Plasencia’s visit to Iran came shortly after Reuters news agency reported on Oct 16 that an Iran-flagged super tanker, carrying two million barrels of heavy crude provided by the Venezuelan state-run oil firm, was about to set sail for Iran. The vessel had reportedly arrived in Venezuela last month carrying 2.1 million barrels of Iranian condensate. Click here to read…

Syrian government, opposition to start drafting constitution

The Syrian government and opposition groups have agreed to start drafting new constitutional provisions during renewed United Nations-mandated negotiations in Geneva this week. “The two co-chairs now agree that we will not only prepare for constitutional reform, but we will prepare and start drafting the constitutional reform,” UN Special Envoy for Syria Geir Pedersen said at a brief news conference on Oct 17. The drafting committee is comprised of 45 members from the Syrian government, opposition, and civil society. They have not met since last January. “We concluded that we were not making sufficient progress, and that we could not continue the way we have been working,” Pedersen said. “Since then, close to nine months, I’ve been negotiating between the parties, trying to establish a consensus on how we are going to move forward.”In January 2018 at the Russia-hosted Syrian peace conference in Sochi, an agreement was reached to form a 150-member committee to draft a new constitution until September 2019, equally represented by the Syrian government, political opposition, and civil society. A smaller committee of 45 individuals of that same proportion is tasked with negotiating and drafting the new constitutional provisions. Click here to read…

Analysis: How Judge Bitar’s probe shook Lebanon leaders

When the Lebanese government announced more than a year ago that the probe into the devastating explosion in Beirut’s port would be conducted domestically, few expected that senior officials would be charged. But even fewer expected that the lead investigator, Judge Tarek Bitar, could rattle the country’s entrenched leadership, which for decades has reigned with impunity and routinely quashed legal investigations that may hold it accountable. More than 200 people were killed and some 6,500 wounded when hundreds of tonnes of highly explosive ammonium nitrate fertiliser stored in the port for years ignited on August 4, 2020. The explosion wrecked large parts of Beirut and continues to haunt Lebanon, as the country struggles with an economic meltdown that plunged three-quarters of its population into poverty. No officials have been convicted yet. Bitar’s persistence to pursue senior political and security officials, despite their attempts to de-legitimise and remove him, has put the country on notice. On Oct 14, a protest in Beirut by Hezbollah and Amal supporters calling for Bitar’s removal turned into a bloodbath when unidentified snipers fired at the crowd from rooftops, triggering a gun battle that last for more than four hours. Seven civilians and combatants died. Click here to read…

Saudi Arabia ‘at the top’ of China’s Middle Eastern diplomacy

Relations with Saudi Arabia are at the top of China’s Middle Eastern diplomacy efforts, the Chinese foreign minister told his Saudi Arabian counterpart in a call on Oct 17. Wang Yi said China had always given priority to its relations with Saudi Arabia and was willing to be a long-term and reliable partner, according to a readout issued by the Chinese foreign ministry soon after his conversation with Faisal bin Farhan Al Saud. Wang said China was ready to work with Saudi Arabia to deepen connections between China’s Belt and Road Initiative and Saudi Arabia’s “Vision 2030”. He added that China would continue to play a constructive role in promoting the resumption of negotiations on the implementation of the Iran nuclear deal. “China has always maintained an objective and fair position on the Iran nuclear issue and committed itself to maintaining the international nuclear non-proliferation system and safeguarding the security and stability of the Gulf region in the Middle East, without any self-interest or geopolitical considerations.”At a meeting in Tashkent in July, Wang told his Saudi Arabian counterpart that China opposed external forces pointing fingers at Saudi Arabia under the banner of human rights and democracy. Click here to read…

Russia suspends NATO mission after staff expelled

Russia will suspend the activities of its diplomatic mission to NATO and close the alliance’s offices in Moscow in response to its expulsion of eight Russians in a row over spying. The moves, announced on Oct 18 by Russian Foreign Minister Sergey Lavrov, are set to plunge relations between Moscow and the transatlantic security body to new depths when they take effect at the start of next month. Lavrov also announced that NATO’s military liaison and information offices in Moscow would be closed, saying accreditations would be recalled at the beginning of November. NATO Secretary General Jens Stoltenberg meanwhile said the expulsions were not linked to a particular event but claimed the eight individuals’ activities were not in line with their accreditations. He said NATO needed to be vigilant in the face of “malign” Russian activity and described relations with Moscow as at their lowest point since the end of the Cold War. Stoltenberg cited Russia’s military build-up along Ukraine’s border and what he said were violations of the Intermediate-Range Nuclear Forces (INF) Treaty as evidence of “aggressive actions”. However, the council has been largely non-functioning since Moscow’s annexation of Crimea from Ukraine in 2014. Click here to read…

U.S. calls Cambodia opaque over Chinese activity at navy base

The United States on Oct 13 accused Cambodia of lacking transparency about Chinese construction activities at its biggest naval base and urged the government to disclose to its people the full scope of Beijing’s military involvement. The Center for Strategic and International Studies (CSIS) on Oct 13 made public what it said were satellite images showing construction in August and September of three new buildings and the start of a new road. U.S. embassy spokesperson Chad Roedemeier in a statement said that any foreign military presence at Ream would violate Cambodia’s constitution and undermine regional security. “The Cambodian people deserve to know more about the project at Ream and to have a say in this type of military agreement, which has long term implications for their country.”Cambodia’s ties with the United States have frayed in recent years over U.S. allegations its ruling party is persecuting its opponents, and concerns about China’s growing influence. A year ago, Cambodia said it had razed a U.S.-funded facility at the Ream naval base to allow for further expansion. The United States said Cambodia had a year earlier turned down its offer to repair the base. Click here to read…

China’s top leaders set date for key meeting next month

The Politburo on Oct 18 decided to hold the sixth plenary session of the 19th Central Committee from November 8 to 11, state news agency Xinhua reported. It said the leadership had sought feedback on the resolution on the party’s “major achievements and historical experience” and it would be reviewed during the plenum. The leaders concluded that while much progress had been made over the past 100 years since the party was founded, it must stay vigilant to achieve the goal of “national rejuvenation” by the middle of this century, according to the report, which called it an “irreversible process”. The November meeting will be important for President Xi Jinping to reinforce the official narrative of the party’s rule and his leadership status ahead of next year’s twice-a-decade national congress, when a major reshuffle is expected. According to observers, the resolution will become an important political document that could chart the direction of China’s ruling party for the next few decades – it has previously adopted just two similar resolutions, both at critical junctures in its history. Click here to read…

Analysis: The man who knew too much of Xi’s power plays is out

On Oct. 2, a major heavyweight with direct knowledge of President Xi Jinping’s long power struggle abruptly fell from grace. The Central Commission for Discipline Inspection, the Chinese Communist Party’s top anti-graft body, announced that former Justice Minister Fu Zhenghua has been placed under investigation on suspicion of “serious disciplinary violations.” Fu, 66, is an incumbent member of the party’s elite Central Committee. The crackdown on an influential figure who has overseen the judiciary and police has sent immeasurable shock waves through China’s political world. Fu was behind the investigations that put countless people behind bars. Now that Fu himself has been placed under investigation, doubts could also arise about the legitimacy of his past investigations. It is a momentous development. “My impression was that he was a technocrat who started with case investigations and rose through the ranks,” said one party source. “But this is a case of a man who knew too much. He was forced to leave, in quite a ruthless manner. Now, anything could happen.” One example of Fu’s work was the investigation into Zhou Yongkang, a former member of the party’s top decision-making body, the Politburo Standing Committee. Click here to read…

U.S. carrier hosts 12 senior Indian officers at Malabar ‘Quad’ drill

Members of the Quadrilateral Security Dialogue — the U.S., Japan, Australia and India — wrapped up joint defence drills in the Indian Ocean on Oct 14, further strengthening their security partnership amid China’s growing military clout in the region. The second phase of the annual Malabar exercise, which included all four Quad members for the second straight year, had begun Oct 11, according to the Japanese Maritime Self-Defense Force. On the final day, Chief of Naval Operations Adm. Mike Gilday, the U.S. Navy’s top commander, hosted 12 senior Indian Navy officers aboard the USS Carl Vinson aircraft carrier. Those visiting included Indian Chief of Naval Staff Adm. Karambir Singh and Vice Adm. A.B. Singh, commander in chief of the Eastern Naval Command. “This visit to Carl Vinson during Malabar was an important opportunity to see firsthand the integration between our two navies at-sea,” Gilday said in a U.S. Navy news release. “By our navies continuing to exercise together, as we are doing right now alongside Japanese and Australian naval forces, there is no doubt our partnership will only continue to grow. Cooperation, when applied with naval power, promotes freedom and peace, and prevents coercion, intimidation and aggression,” he said. Click here to read…

Kishida includes Quad, China in first calls; South Korea on hold

The Quad security alliance took center stage in new Japanese Prime Minister Fumio Kishida’s first phone calls with foreign leaders, leaving South Korea in the cold. Kishida spoke first with U.S. President Joe Biden, followed by Australian Prime Minister Scott Morrison, both on Oct. 5. He talked with Indian Prime Minister Narendra Modi on Oct 08 before participating later that day in a teleconference with all three of them, bringing together the leaders of the Quad nations. Biden is the first leader Kishida would like to meet face to face, the prime minister said on a TV Tokyo program Oct 11. Kishida also spoke with Russian President Vladimir Putin on Oct 07 and Chinese President Xi Jinping on Oct 08. The Xi call occurred prior to the conversation with Modi, avoiding the appearance of Kishida consulting with the entire Quad before speaking to the Chinese leader. But the Japanese prime minister has yet to call South Korean President Moon Jae-in, underscoring the deep deterioration in relations between the two countries. Kishida will speak with leaders of more than 10 countries over roughly a month. Click here to read…

Countries call for urgent action on biodiversity with ‘Kunming Declaration’

More than 100 countries pledged on Oct 13 to put the protection of habitats at the heart of their government decision-making, but they stopped short of committing to specific targets to curb mass extinctions. Chinese Environment Minister Huang Runqiu told delegates to a U.N. Biodiversity Conference in the city of Kunming that the declaration they adopted was a document of political will not a binding international agreement. The Kunming Declaration calls for “urgent and integrated action” to reflect biodiversity considerations in all sectors of the global economy but crucial issues – like funding conservation in poorer countries and committing to biodiversity-friendly supply chains – have been left to discuss later. With plant and animal species loss now at the fastest rate in 10 million years, politicians, scientists and experts have been trying to lay the groundwork for a new pact on saving biodiversity. In a previous agreement signed in Aichi, Japan, in 2010, governments agreed on 20 targets to try to slow biodiversity loss and protect habitats by 2020, but none of those targets was met. At the heart of efforts to save nature is a call by the United Nations for countries to protect and conserve 30% of their territory by 2030 – a target known as ’30 by 30,’ which the conference acknowledged though it was not clear to what extent host China backed it. Click here to read…

Kishida says Fukushima wastewater release can’t be delayed

Japan’s new prime minister on Oct 17 said the planned mass disposal of wastewater stored at the tsunami-wrecked Fukushima nuclear plant cannot be delayed, despite concerns from local residents. Speaking at his first visit to the facility since taking office, Fumio Kishida said his government would work to reassure residents nearby the plant about the technical safety of the wastewater disposal project. “I felt strongly that the water issue is a crucial one that should not be pushed back,” Kishida told reporters after the tour. The government and TEPCO announced plans in April to start releasing the water into the Pacific Ocean in the spring of 2023 over the span of decades. The plan has been fiercely opposed by fishermen, residents and Japan’s neighbours, including China and South Korea. Contaminated cooling water has continued to leak from the damaged reactors since the disaster. The water has been pumped up from basements and stored in about 1,000 tanks which the operator says will reach their capacity late next year. Japanese officials say disposal of the water is indispensable for the plant cleanup, and that its release into the ocean is the most realistic option. Click here to read…

ASEAN downgrades Myanmar presence in summit in major rebuke

Southeast Asian foreign ministers have agreed to downgrade Myanmar’s participation in an upcoming summit in their sharpest rebuke yet of its leaders following a Feb. 1 military takeover. The Association of Southeast Asian Nations will invite a non-political representative instead of Myanmar’s military leader, Senior Gen. Min Aung Hlaing, the grouping’s chair Brunei said Oct 16. ASEAN foreign ministers held an emergency meeting late Oct 15 after Myanmar refused to cooperate with the bloc’s crisis envoy, Brunei Second Foreign Minister Erywan Yusof. He was appointed in August to mediate in the crisis but abruptly cancelled a trip to Myanmar this week after he was told he would not be able to meet with Suu Kyi and others as he wanted. Myanmar contended Erywan could not meet with people facing legal proceedings such as Suu Kyi and deposed President Win Myint or with entities that have been declared illegal, Brunei said in a statement. The statement from the ASEAN ministers said they were concerned about the impact of the Myanmar crisis on regional security and about the “unity, credibility and centrality of ASEAN as a rules-based organization.” Click here to read…

Air strikes target capital of Ethiopia’s Tigray; 3 civilians dead

Ethiopian military air strikes hit the capital of the Tigray region and killed at least three people, witnesses said on Oct 18, returning the war abruptly to Mekelle after several months of peace. Ethiopia’s government, however, dismissed the reports.The raids, confirmed by two humanitarian workers, came days after a new military offensive was launched against the Tigray forces who have fought Ethiopian and allied forces for nearly a year. Kindeya Gebrehiwot, a spokesman for the Tigray authorities who lives in Mekelle, told The Associated Press a market was bombed on a busy shopping day and many people were wounded. Another resident, speaking on condition of anonymity for fear of retaliation, said the first air strike occurred just outside the city and three children from the same family were killed. The resident said at least seven people were wounded in the second attack, which also badly damaged a hotel. Mekelle has not seen fighting since late June, when the Tigray forces retook much of the region and Ethiopian troops withdrew. Since then, Ethiopia’s federal government has called all able citizens to crush the Tigray fighters who dominated the national government for 27 years before being sidelined by Prime Minister Abiy Ahmed. Click here to read…

Nigeria’s Gangs Raised Millions by Kidnapping Children. Now the Government Can’t Stop Them

In the forests of northwest Nigeria, loosely organized criminal gangs that raised funds kidnapping schoolchildren are now flush with arms and operating beyond the reach of an increasingly fragile state. In some instances, government officials in Africa’s most populous nation have been paying the gangs to return stolen weapons and kidnapped personnel, according to confidential documents and interviews with senior military officials, soldiers and independent mediators, and one of the gang leaders. Nigeria’s government—still battling Islamic State militants in the northeast—refers to the lesser-known criminal groups in its northwest as “bandits.” But soldiers, intelligence officers and mediators who have visited their camps describe a surfeit of munitions. “Criminal factions appear to be better equipped with larger-capacity advanced weaponry than national security agencies,” said a confidential internal report presented to the president in July. Nigeria’s Air Force said in a statement that allegations it had made payments to armed bandits were “fake news.” Several senior security officials described mass kidnapping for ransom as Nigeria’s primary new security crisis. Click here to read…

Medical

G20 officials back fairer vaccine distribution

G20 trade ministers on Oct 12 promised to work towards a fair distribution of COVID-19 vaccines by lifting export restrictions and making the trade system more transparent. Their final statement, adopted after a meeting in southern Italy, was a sign of the return of multilateralism, said Italian Foreign Minister Luigi di Maio.”We have to ensure that there is greater circulation of vaccines and that there are production factories in the developing countries,” French trade minister Franck Riester said. While more than 6 billion vaccine doses have been produced and administered worldwide, only 1.4 percent of people in poor countries have been fully vaccinated, compared to 58 percent in rich countries, World Trade Organization (WTO) chief Ngozi Okonjo-Iweala said earlier in October. Ahead of the WTO’s ministerial conference set for November 30 to December 3 in Geneva, she called on members to agree on a strong response to the pandemic based on a fairer sharing of the vaccines. Riester said another issue was getting vaccine-makers to waive intellectual property rights to allow production around the world. Click here to read…

EU becomes largest Covid vaccine exporter, shipping ‘over one billion’ doses worldwide

Having shipped at least a billion jabs since the global rollout began in December 2020, the bloc has been the biggest exporter of Covid vaccines, European Commission (EC) President Ursula von der Leyen has announced. Delivering a statement on Oct 18, von der Leyen outlined the scale of the EU’s Covid vaccine distribution scheme. It has so far shipped doses to more than 150 countries. “Very clearly, the European Union is the largest exporter of Covid-19 vaccines,” she stated, marking the bloc’s “important milestone” of having delivered “over one billion” doses in the past 10 months. The EU has been working to send Covid vaccines around the globe since December 2020, primarily to larger nations, but also to smaller, poorer ones that are vulnerable to the virus. The milestone has been passed despite the EU having introduced a mechanism that monitors and potentially limits vaccine exports, with the measure being extended from an initial September deadline to the end of 2021. According to the EC, the EU is currently sending at least every second dose produced in the EU abroad. Last month, the bloc agreed to send a further 200 million doses to Africa and to low-income countries. Click here to read…

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…