Economic
Goal of ending extreme poverty by 2030 out of reach, report says
The world is unlikely to meet a longstanding goal of ending extreme poverty by 2030, the World Bank has said, citing the effects of “extraordinary” shocks to the global economy, including the coronavirus pandemic and the war in Ukraine. In a new report released on 05 Oct, the World Bank said higher food and energy prices had hindered a quick recovery after COVID-19 dealt the “biggest setback” to global poverty in decades. It added it expected the pace of poverty reduction to further stall this year as global growth prospects fade following Russia’s invasion of Ukraine, an economic slowdown in China and rising inflation. “Given current trends, 574 million people – nearly 7 percent of the world’s population – will still be living on less than $2.15 a day in 2030, with most in Africa,” the Poverty and Shared Prosperity report said. In a statement, World Bank President David Malpass called for major policy changes to boost growth and help jumpstart efforts to eradicate poverty. “Progress in reducing extreme poverty has essentially halted in tandem with subdued global economic growth,” he said, blaming inflation, currency depreciations and broader overlapping crises for the rise in extreme poverty. Click here to read...
China’s economy is losing its lustre, but US firms say it’s irreplaceable in the short term
Although “nobody can replace” China in the near future, growing uncertainty coupled with competition from neighbouring countries is causing foreign companies to reassess operations in the world’s second largest economy, says the president of the American Chamber of Commerce in China. “People do fundamentally think China is an important market to be in, but there are reservations,” Michael Hart said in an interview with the South China Morning Post. “Markets like Vietnam have certainly become more interesting. People are reinforcing and modifying their supply chains. The moves are not necessarily anti-China measures, but definitely a way to protect themselves.” Hart said foreign companies in China have entered a “quiet period” while they either wait for signals the country will reopen, or face reluctance from head offices about expanding. Business confidence in China is at all-time lows, with rising geopolitical tension threatening key industries and stringent Covid-19 measures battering the economy. In an August survey by the US-China Business Council, 96 per cent of respondents said they saw negative effects from Covid controls on their businesses, including halted investment, lost profit, and disrupted supply chains. Decoupling between the world’s two largest economies is complicating matters further, as both countries move to shore up production in sensitive industries like semiconductors and biotech. Click here to read...
US debt surpasses $31 trillion
The US national debt has officially exceeded $31 trillion for the first time in history, the Treasury Department confirmed on Oct 04. The US government owed a total of 31 trillion, 123 billion, 887 million, 781 thousand, and 401 dollars and 34 cents as of October 3, according to publicly released Treasury figures. At the moment of President Joe Biden’s inauguration, in January 2021, the debt stood at $27.75 trillion, according to the Congressional Research Service. “It was $21 trillion just five years ago,” Congressman Chip Roy, a Texas Republican, lamented on Twitter after the news broke. The national debt stood at $19.94 trillion when President Donald Trump took office in 2017, and exploded in the past few years as the Federal Reserve printed money to deal with the Covid-19 pandemic. Most of the debt is held by private individuals, to the tune of $24 trillion, while debts to foreign governments amount to almost $7 trillion. Much of the world indirectly subsidizes the US dollar as the global reserve currency. Meanwhile, the featured announcement on Treasury’s website on Oct 04 concerned the establishment of a 25-member Advisory Committee on Racial Equity, which is supposed to “provide advice and recommendations to Secretary Yellen and Deputy Secretary Wally Adeyemo on efforts to advance racial equity in the economy and address acute disparities for communities of colour.” Click here to read...
OPEC+ confirms oil production cut
OPEC+ member states have agreed an oil production cut of two million barrels per day, a statement published on the group’s website reads. The reduction, which is the largest cut since early 2020, will take effect in November, the cartel announced on Oct 05. According to OPEC, the step comes “in light of the uncertainty that surrounds the global economic and oil market outlooks, and the need to enhance the long-term guidance for the oil market, and in line with the successful approach of being proactive, and pre-emptive, which has been consistently adopted” by the group. The cuts are much harsher than most experts had anticipated earlier this week, and are now expected to stem the latest drop in global prices for crude. Energy ministers from the OPEC+ group led by Saudi Arabia and its allied non-members, including Russia, have held a meeting at the cartel’s Vienna headquarters on Wednesday for the first time since the start of the pandemic in early 2020. The decision on output reduction comes despite intense lobbying by the White House to keep oil production at current levels or higher – something US President Joe Biden had hoped to secure during his visit to Saudi Arabia in July. On Oct 04, CNN cited an unnamed senior official as saying that Washington had mobilized all available resources ahead of the oil cartel gathering, with the Biden administration “having a spasm and panicking.” Click here to read...
With new sanctions, US vows to ‘severely restrict’ Iran oil sales
The Biden administration has announced a new round of sanctions against Iran, vowing to impose financial penalties on a “regular basis” in an effort to “severely restrict” Iranian oil and petrochemical exports. The measures announced on Sept 29 target several firms and “front companies” based in China, the United Arab Emirates, Hong Kong and India that the United States accuses of involvement in the sale of Iranian petroleum and petrochemical products. The administration of US President Joe Biden also explicitly linked the sanctions to the failure to revive the 2015 Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA). “The United States is committed to severely restricting Iran’s illicit oil and petrochemical sales,” Treasury Department official Brian Nelson said in a statement. “So long as Iran refuses a mutual return to full implementation of the Joint Comprehensive Plan of Action, the United States will continue to enforce its sanctions on the sale of Iranian petroleum and petrochemical products.” The penalties freeze the companies’ assets in the US and make it illegal for American citizens to do business with them. Since former US President Donald Trump withdrew from the nuclear deal in 2018, various sectors of the Iranian economy have been under heavy US sanctions. Click here to read...
Türkiye asks Russia for gas concession – Bloomberg
Turkish state-run gas importer Botas is considering asking Russia’s Gazprom to grant a delay on some of Ankara’s due payments for natural gas until 2024, Bloomberg reported on Oct 03. According to Bloomberg, Türkiye is yet to make a formal request for a payment reprieve, but discussions were held between officials. If granted, the deal would help alleviate the pressure on the country’s economy amid a period of high global energy prices. Ankara runs a trade deficit of over $11 billion and has experienced a depreciation of its national currency, the lira, the report noted. A Turkish source cited by Russia’s RIA Novosti on Oct 04 said the discussion was about pricing rather than any proposed payment delay. The partial use of the ruble in trade changed the terms of the contracts, and the parties are discussing how it could impact the price of the product, the source explained. The two nations previously agreed to switch 25% of their trade in natural gas to Russian rubles, shifting away from the US dollar. Moscow has branded the leading Western currency “toxic” due to the control that Washington has over it, and its willingness to use it for political leverage. Hungary, another major buyer of Russian energy, announced on Oct 03 that it had reached a conditional agreement on postponing its due payments for winter gas supplies. Click here to read...
Key Russian Black Sea gas pipeline under threat – US state media
If the Turk Stream natural gas pipeline is damaged, its operator won’t be able to mount repairs because the Dutch government has revoked a key license due to EU sanctions against Russia, US state-run RFE/RL alleged on Sept 29. The outlet claimed to have obtained a letter from Oleg Aksyutin, CEO of South Stream Transport BV, informing the company’s managers to stop all work and cancel contracts with Western suppliers. The letter is reportedly dated September 14, and says that the Netherlands – where the company is registered – had cancelled its operating license, effective September 17. South Stream Transport operates Turk Stream, a pipeline finalized in 2020, which runs under the Black Sea to Türkiye and then on to Serbia and Hungary. It has an annual capacity of 33 billion cubic meters of gas. According to Reuters, South Stream confirmed on Sept 29 that the license has been revoked, but said it had requested a resumption and “will continue gas transportation.” The suspension affects “all contracts related to the technical support of the gas pipeline,” including “design, manufacture, assembly, testing, repair, maintenance, and training,” according to RFE/RL. While there are no reports about interruptions in the Turk Stream supply, RFE/RL noted that much of the pipeline is at the depth of three kilometers, and needs to be constantly monitored for damage due to “seismic activity.” Click here to read...
Pressure on Germany as energy crunch revives EU divisions over joint debt
Two top European Union officials on Oct 04 called for joint borrowing to help the 27-nation bloc navigate the energy crunch together, after Germany faced criticism for going its own way with huge subsidies its peers could never afford. The energy price crisis - aggravated by Russia slashing gas supplies to the EU following Western sanctions over Moscow's war against Ukraine - is threatening recession in Europe as it recovers from the COVID-19 pandemic. Scrambling to respond, EU leaders are set to ask the bloc's executive arm on Sept 30 to work out how to tackle soaring inflation through a cap on gas prices, funded by joint borrowing. But Germany, Denmark and the Netherlands have opposed a price cap, citing concerns over security of supply. They are also against joint borrowing - an echo of the EU's long-standing divisions that have come to surface again over the twin energy and inflation crises. Germany has instead raised eyebrows by announcing a massive €200 billion (US$198 billion) support package for its businesses and households, dwarfing aid announced by other major EU economies - €67 billion in the case of France, and €68 billion in Italy. Click here to read...
Japan spent $19.7bn on intervention to support the yen
Japan's government spent up to 2.8 trillion yen ($19.7 billion) intervening in the foreign exchange market last week to prop up the yen, Ministry of Finance data showed on Sept 30, draining nearly 15% of funds it has readily available for intervention. The figure was less than the 3.6 trillion yen estimated by Tokyo money market brokers for Japan's first dollar-selling, yen-buying intervention in 24 years to stem the currency's sharp weakening. The ministry's figure, indicating total spending on currency intervention from Aug. 30 to Sept. 28, is widely believed to have been used entirely for the Sept. 22 intervention and would surpass the previous record for dollar-selling, yen-buying intervention in 1998 of 2.62 trillion yen. Confirmation on the dates of the spending will be released in November. The intervention, conducted after the yen slumped to a 24-year low of nearly 146 to the dollar, triggered a sharp bounce of more than 5 yen per dollar from that low, although the currency has since drifted down again to around 144.25. Japan held roughly $1.3 trillion in reserves, the second biggest after China, of which $135.5 billion was held as deposits parked with foreign central banks and the Bank for International Settlements (BIS), according to foreign reserves data released on Sept. 7. Click here to read...
Bangladesh aims for yuan trade as cushion against mighty dollar
Hit by a strong dollar and fearful of shrinking foreign reserves, Bangladesh is turning to alternative currency arrangements including the use of the Chinese yuan in international transactions. Bangladesh Bank, the central bank, in mid-September said that authorized dealer banks (ADs) can carry out transactions in yuan for trade with China. "To bring [a] wider scope, it has been decided that ADs may maintain accounts in [yuan] with their correspondents/branches abroad for settlement of cross border transactions executed in this currency," the central bank said in a circular. This builds on a 2018 move to allow AD banks to open foreign currency clearing accounts with Bangladesh Bank in yuan. Reports put Bangladesh's annual imports from China at around $15 billion to $16 billion, and exports in the other direction at about $1 billion -- though China's envoy to the country was recently quoted as saying the total trade value had reached $25 billion. Experts say that by using yuan, Bangladesh can settle about 10% of its import bill with the currency, reducing its dependence on the dollar.Adding the yuan as a currency for trade with China is a "very useful step which we had been demanding for a long time," said Al Mamun Mridha, joint secretary general of the Bangladesh China Chamber of Commerce and Industry. Click here to read...
Top Fed Official Warns of More Persistent Price Pressures
Despite some signs of easing inflation, underlying price pressures have too much momentum and will likely require a period of higher interest rates, a top Federal Reserve official said Oct 03. The economy is already seeing some of the effects of the Fed’s efforts to slow demand, including higher borrowing costs and mortgage rates and falling stock prices, which “have become significantly less supportive of spending,” said New York Fed President John Williams in remarks prepared for delivery Oct 03. But Mr. Williams, a top policy adviser to Fed Chairman Jerome Powell, warned that reducing inflation to the Fed’s 2% target would take more time because of how price pressures have spread across the U.S. economy. “Tighter monetary policy has begun to cool demand and reduce inflationary pressures, but our job is not yet done,” he said at the U.S. Hispanic Chamber of Commerce convention in Phoenix. Mr. Williams compared inflation to an onion, with the prices of globally traded commodities such as lumber, steel, and oil, serving as the outer layer, and durable goods such as appliances, cars, and furniture serving as a middle layer. Declining commodities prices and improving supply chains should slow inflation for many goods, Mr. Williams said. “Unfortunately, that’s it for the good news on inflation,” he said. “The fact is, lower commodity prices and receding supply-chain issues will not be enough by themselves to bring inflation back to our 2% objective.” Click here to read...
M-CBDC Bridge completes its first real-trade pilot test based on four central bank digital currencies
The multiple central bank digital currency bridge (m-CBDC) has successfully completed its first real-trade pilot test based on four national or regional central bank digital currencies from August 15 to September 23, the Bank for International Settlements Innovation Hub in Hong Kong, together with Hong Kong Monetary Authority, Bank of Thailand, Central Bank of the United Arab Emirates and the Digital Currency Institute of the People's Bank of China announced. The m-CBDC bridge project is designated to explore the application of central bank digital currencies in cross-border payment, using distributed ledger technology that supports data sharing and duplication among network members, which will improve the efficiency and reduce the cost of cross-border payment, experts noted. The G20 has made the use of emerging technologies to achieve timelier, cheaper and safer cross-border payments and settlements one of its priorities. This time, a total of 20 commercial banks from four regions or countries jointly participated in the digital currency bridge pilot. The total amount of central bank digital currency issued in the pilot test was equivalent to more than 80 million yuan ($11.07 million), realizing more than 160 cross-border payment and foreign exchange operations, with a settlement amount equivalent to more than 150 million yuan. Click here to read...
Sri Lanka has resumed free trade talks with China- SCMP
Sri Lanka has resumed free-trade talks with China over the past two months, the South China Morning Post reported on Sept 30, citing the island country's ambassador to China, Palitha Kohona. "It (talks) have been going on not at a high level, but at an official level," the newspaper cited the ambassador as saying. Click here to read...
Apple Inc. will manufacture iPhone 14 in India
Apple Inc. will make its iPhone 14 in India, the company said on Sept 26, as manufacturers shift production from China amid geopolitical tensions and pandemic restrictions that have disrupted supply chains for many industries. “The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” Apple said in a statement. Apple unveiled its latest line-up of iPhones earlier this month. They will have improved cameras, faster processors and longer lasting batteries at the same prices as last year’s models. India is the world’s second-largest smartphone market after China but Apple iPhone sales have struggled to capture a large share of the market against cheaper smartphones from competitors. The announcement from the Cupertino, California-based company dovetails with Prime Minister Narendra Modi’s push for local manufacturing, which has been a key goal for his government ever since he took office in 2014. The tech company has bet big on India, where it first began manufacturing its iPhone SE in 2017 and has since continued to assemble a number of iPhone models there. Apple opened its online store for India two years ago, but the pandemic has delayed plans for a flagship store in India, according to local media reports. Click here to read...
Taiwan vows to safeguard interests amid U.S.-led 'Chip 4' talks
Taiwan's government will safeguard the interest of its home-grown semiconductor companies, a top official said on Oct 05, addressing concerns about the potential impact of a U.S.-led chip alliance on Taiwanese tech industries. Deputy Economic Affairs Minister Chen Chern-chyi said in a news conference on Wednesday that the purpose of the "Chip 4" alliance -- a framework to ensure a stable supply of vital semiconductors involving South Korea, Japan, Taiwan and the U.S. -- is mainly "to work with our partners to form a resilient supply chain." He added that the group recently held a preparatory meeting. There is no official session planned yet for Chip 4 and none of the formal agendas have been decided. But the government will consult Taiwanese key industry players going forward, though it remains unclear whether topics like export controls are part of the deal, the minister said."A semiconductor industry is a globally collaborated industry," Chen said. "The manufacturing equipment comes primarily from the U.S. and Europe, the raw materials come from Japan, and manufacturing technology from Taiwan and [South] Korea. ... So this requires collaboration to form a very resilient supply chain." Chen's comments come as key semiconductor industries have been closely linked with national security and are having to choose between China, a major trade player, and the U.S., a key security partner. Click here to read...
Google Translate app no longer available in China, marking US tech giant’s latest retreat from world’s biggest internet market
Google Translate, one of the few remaining consumer services that the US tech giant made available in mainland China, is no longer accessible in the country, marking the company’s latest retreat from the world’s largest internet market. The app has been inaccessible to mainland Chinese users since Oct 01. They have been redirected to a generic search bar, with a notice asking users to bookmark the service’s Hong Kong webpage, which is also inaccessible on the mainland. The built-in translation function on Google’s Chrome browser has also become unavailable in the country, according to various user posts on Chinese social media. The move to discontinue Google Translate’s service in China was first reported by TechCrunch. Google told the American online news site that the app’s pullback was “due to low usage” on the mainland. Google did not immediately respond to a request for comment on Oct 02. While a number of Chinese technology companies provide a range of translation services, the Google Translate app has a large user base in the country. In August, the Chinese Google Translate website recorded 53.5 million visits from desktop and mobile users combined, according to data on web analytics platform Similarweb. Click here to read...
Strategic
Putin signs unification treaties for new Russian regions
Russian President Vladimir Putin signed into law four unification treaties with the Donetsk and Lugansk People’s Republics, as well as the Kherson and Zaporozhye Regions, on Oct 05 morning. Earlier the documents were unanimously endorsed by the Federation Council, the upper house of the Russian parliament. The agreements were ratified on Oct 03 by the State Duma, the lower house of parliament, after they were certified as lawful by the country’s Constitutional Court over the weekend. The agreements were signed by Putin and the heads of the four former Ukrainian regions on Sept 30, after the residents of the territories overwhelmingly backed the idea of joining Russia during referendums held between September 23 and 27. The votes have been firmly rejected by Kiev and its Western backers, who have vowed to never accept their results nor recognize the four regions' accession. The DPR and LPR split from Ukraine in 2014 in the aftermath of the Maidan coup and the civil conflict in the country’s east that followed. Shortly after launching a military operation in February this year, Russia seized Kherson Region and a larger part of Zaporozhye Region. Russia sent troops into Ukraine on February 24, citing Kiev’s failure to implement the Minsk agreements, designed to give the regions of Donetsk and Lugansk special status within the Ukrainian state. Click here to read...
Chinese, Russian warships in ‘show of solidarity’ near Alaska
A US Coast Guard ship on routine patrol in the Bering Sea near Alaska last week came across Chinese and Russian warships conducting a joint operation that analysts say was a “show of solidarity”. The crew of the Kimball, a Honolulu-based cutter, first discovered a Chinese guided-missile cruiser about 75 nautical miles north of Kiska Island, Alaska, in the United States exclusive economic zone on September 19, the Coast Guard said on Sept 26. Kiska is part of the Aleutian Islands and lies roughly 2,000km (1,300 miles) southwest of Anchorage and about 1,100km (700 miles) from Russia. The US Coast Guard said the Kimball crew later identified another two Chinese naval ships in formation with four Russian naval vessels – including a Russian frigate – operating as a “combined surface action group” within the US zone. It said the operation could have been part of joint naval drills following Russia’s week-long Vostok 2022 war games that ended on September 7. The Kimball was monitoring the area in accordance with Operation Frontier Sentinel, which aims “to meet presence with presence when strategic competitors operate in and around US waters”, the US Coast Guard said. Click here to read...
U.S., Philippines pivot to closer defense ties with eye on Taiwan
U.S. Defense Secretary Lloyd Austin and Philippine counterpart Jose Faustino agreed Sept 29 to step up their defence cooperation, as Washington seeks to better position itself for a potential Taiwan conflict. At a joint news conference, Austin stressed that "by deepening our cooperation and modernizing our alliance, we can help secure the Philippines' future, tackle regional challenges and promote peace and security in the Indo-Pacific." He called for cooperation in a wide range of areas, "including strengthening our Mutual Defense Treaty commitments, [and] in enhancing maritime cooperation, in building on our mutual defence posture, and improving interoperability and information sharing."In relation to a Taiwan contingency, which is a growing concern in the U.S., Faustino said that it is "imperative to regularly update and exercise the Philippines-U.S. ... mutual defence concept plan, under the ambit of the Mutual Defense Treaty, based on our dynamic security environment." Referring to a possible evacuation of Filipino citizens living in Taiwan, he also stressed, "We continue to update and enhance our contingency plans." The talks came after U.S. President Joe Biden met with Philippine President Ferdinand Marcos Jr. for the first time last week on the sidelines of the U.N. General Assembly in New York. Click here to read...
US military surveillance in South China Sea scaled back after spike in tensions across Taiwan Strait
The number of US surveillance sorties in September decreased by around half compared with August, according to the South China Sea Probing Initiative (SCSPI), a Beijing-based think tank. Monthly records from the SCSPI show that land-based US reconnaissance aircraft made 28 sorties during September, down from 46 in August, when House Speaker Nancy Pelosi visited Taiwan. The think tank used ADS-B (automatic dependent surveillance-broadcast) technology to track the planes based on broadcasts from their electronic equipment. Pelosi was the most senior US official to visit the self-ruled island since former speaker Newt Gingrich travelled to Taipei in 1997. Several days of Chinese military drills encircling the island and ballistic missile launches after Pelosi’s visit prompted US countermeasures that included positioning the aircraft carrier USS Ronald Reagan and its strike group closer to Taiwan. August 5 saw the highest number of US sorties of the month – a day after China test-fired 11 missiles. Four surveillance aircraft, including three P-8As and one RC-135V, were deployed, according to the SCSPI. The 46 US surveillance sorties in August compare with a total of 67 sorties in July. The SCSPI said the higher number of missions that month was related to operations carried out in the region by the destroyer USS Benfold and the USS Ronald Reagan. Click here to read...
China has no clear road map for Taiwan unification: U.S. experts
Leading U.S. experts broadly believe China does not have a coherent internal strategy and road map to achieve peaceful unification with Taiwan, according to a new survey by the Center for Strategic and International Studies. The Washington-based think tank conducted a poll of 64 leading analysts to gauge their views on China's game plan shortly after U.S. House Speaker Nancy Pelosi's visit to Taiwan that triggered unprecedented Chinese military exercises around the island. An overwhelming majority said Beijing is willing to wait for unification -- but not forever. The experts were divided on the internal "deadline" that Beijing may have to solve the Taiwan issue -- anywhere between 2027, 2049 and 2072. The findings show that U.S. experts do not believe Beijing is preparing for immediate action on Taiwan -- perhaps in contrast to how the Taiwan crisis has been portrayed in the media or at think tank seminars. Bonny Lin, the director of the centre’s China Power Project and the leader of the survey, told Nikkei Asia: "The survey shows that some of the catchy media headlines about how China may use force against Taiwan tomorrow does not reflect the view of leading experts on China and Taiwan."The survey, titled "Surveying the Experts: China's Approach to Taiwan," asked whether Beijing has "a coherent internal strategy and road map, with concrete stages and actionable next steps, to achieve peaceful unification with Taiwan." To this, 80% of respondents said "no." Click here to read...
Countries with the largest nuclear arsenals should reduce their nuclear arsenals first: Chinese envoy to the UN
Countries with the largest nuclear arsenals should earnestly fulfill their special and priority responsibilities and further significantly and substantially reduce their nuclear arsenals to create conditions for the eventual realization of comprehensive and complete nuclear disarmament, Geng Shuang, China's deputy permanent representative to the UN, told the UN General Assembly (UNGA) on Sept 26. The UNGA held a high-level meeting on Sept 26 to mark the International Day for the Total Elimination of Nuclear Weapons. As UN described, it provides an opportunity to educate the public ̶ and their leaders ̶ about the real benefits of eliminating such weapons, and the social and economic costs of perpetuating them. Geng said during the meeting that the complete prohibition and thorough destruction of nuclear weapons and the eventual establishment of a nuclear-weapon-free world serves the common interests of mankind and is the shared aspiration of all countries. Click here to read...
Japan, China mark 50 years of diplomatic ties as tensions mount
Japanese Prime Minister Fumio Kishida and Chinese President Xi Jinping exchanged congratulatory messages on Sep 29 to commemorate the 50th anniversary of the normalization of diplomatic relations between the two countries. Xi told Kishida that he attached "great importance" to the development of relations, and that he was willing to work together to build ties that "meet the demands of a new era." Similarly, Kishida told Xi that although there are "many issues and challenges" in the relationship, he hopes to pave the way for a "new future." "Japan and China share a great responsibility to achieve peace and prosperity in the region and world," Kishida said. "In view of the next 50 years ... I hope to work with you to build constructive and stable Japan-China relations." The messages were read out at an event in Tokyo, attended by Japanese Foreign Minister Yoshimasa Hayashi and Chinese Ambassador to Japan Kong Xuanyou. The organizers of the gathering included Japan's powerful Keidanren business lobby. In China, the Chinese People's Association for Friendship with Foreign Countries and other groups were to hold a ceremony at the Diaoyutai State Guesthouse in Beijing. The two countries look to arrange talks between Kishida and Xi this year, in what would be their first call since October 2021, the month Kishida took office. Click here to read...
North Korea conducts longest-range missile test yet over Japan
Nuclear-armed North Korea test-fired a ballistic missile further than ever before on Oct 04, sending one soaring over Japan for the first time in five years, prompting a warning for residents to take cover. It was the first North Korean missile to follow such a trajectory since 2017, and its estimated 4,600 km range may have been the longest distance travelled for a North Korean test flight, which are often "lofted" higher into space to avoid flying over neighbouring countries. The Japanese government warned citizens to take cover and temporarily suspended some train services in the northern part of the country while the missile passed over its territory before falling into the Pacific Ocean.It was the latest in an escalating cycle of military muscle flexing in the region. A U.S. aircraft carrier made a port call in South Korea for the first time since 2018 on Sept. 23, and North Korea has conducted five launches in 10 days. That period has also seen joint drills by the United States, South Korea and Japan, and a visit to the region by U.S. Vice President Kamala Harris who stood at the fortified border between the Koreas and accused Pyongyang of undermining security. Pyongyang accuses the U.S. and its allies of threatening North Korea with drills and defence build-ups. Click here to read...
Ceremony and controversy await Harris during visit to Asia
Attending funerals on behalf of the United States is normally a straightforward assignment for a vice president, but Kamala Harris will confront controversy at nearly every turn as she visits Asia for the memorial honouring former Japanese Prime Minister Shinzo Abe. American allies are seeking clarity after mixed messages over whether President Joe Biden would send troops to defend Taiwan from a Chinese invasion, a potential conflict that could swiftly engulf the rest of the region. There is the potential for more provocations from North Korea, which test-fired a missile shortly before Harris’ departure Sunday from Washington. Meanwhile, South Korea and Japan are inching toward a reconciliation that would heal some of the wounds left from World War II, with the U.S. gingerly trying to nudge along the process. And there’s resentment over a new U.S. law that makes electric vehicles built outside of North America ineligible for subsidies. Even Abe’s state funeral Sept 27 itself is a sensitive topic in Japan, where such memorials are uncommon and the late leader’s legacy remains disputed. Abe, a conservative nationalist in a country that embraced pacifism after World War II, was assassinated with a homemade firearm nearly three months ago. Click here to read...
Prospect of 'Chairman Xi' fuels debate as China party congress nears
With China's twice-a-decade Communist Party congress two weeks away, debate is heating up over whether the Mao-era title of "chairman" will be revived for President Xi Jinping, a change that could position him to lead for life but remains deeply controversial. The title is seen as nearly synonymous with Mao Zedong, founding father of modern China, who held it until his death in 1976. China's constitution at the time granted the party chairman broad powers, including command of the country's armed forces. Speculation has been swirling for years that Xi, who looks to Mao as a political role model, will bring back the title for his own use. The position was also held by Hua Guofeng and Hu Yaobang before being abolished under Deng Xiaoping on the grounds that it encouraged Mao's consolidation of power and the cult of personality surrounding him, ultimately contributing to the Cultural Revolution. Xi has already pivoted from Deng's "reform and opening-up" economic policy with his own "common prosperity" push. His moves to resurrect the chairman post have been seen as a bid to break with Deng in governance as well, capping off his efforts to move away from the collective leadership system established by his predecessor -- something that many in the party object to. Click here to read...
Ties in focus as Pakistan army chief meets US officials
Weeks before his scheduled retirement, Pakistan’s military chief has travelled to the United States for a series of high-level discussions. General Qamar Javed Bajwa held meetings on Oct 04 with US Secretary of Defense Lloyd Austin and National Security Adviser Jake Sullivan, during which they discussed the regional security situation, according to the Pakistani military. For its part, the Pentagon said the talks were “focused on opportunities to address key mutual defence interests”. Nasim Zehra, an Islamabad-based analyst, said this was Bajwa’s “farewell trip” to the US ahead of his November retirement. The general was originally slated to retire three years ago, but the government of former Prime Minister Imran Khan granted him an extension. “We are seeing greater interaction between the political and military leadership of both countries,” Zehra told Al Jazeera. “I wouldn’t rule out this trip involving discussions of greater military cooperation.” During the previous decade, Pakistan steadily moved towards its main regional ally China for its economic and defence needs, which resulted in the gradual cooling-off in its relationship with the US. Click here to read...
Burkina Faso Soldiers Take Control of State TV, Declare Countercoup
More than a dozen members of Burkina Faso’s army seized control of state television late Sept 30, declaring that the country’s coup leader-turned-president, Lt. Col. Paul-Henri SandaogoDamiba, had been overthrown. The spokesman introduced Capt. Ibrahim Traore as the new head of the volatile West African country that is battling a mounting Islamic insurgency. Mr. Damiba and his allies overthrew the democratically elected president only nine months ago, coming to power with promises of making the country more secure. However, violence has continued unabated, and frustration with his leadership has grown in recent months. “In the face of the continuing deterioration of the security situation, we have repeatedly tried to refocus the transition on security issues,” according to the statement read aloud Friday evening by the soldiers. The soldiers promised the international community they would respect their commitments and urged Burkinabes “to go about their business in peace.” Burkina Faso’s latest military power grab follows in the footsteps of neighbouring Mali, which also saw a second coup nine months after the August 2020 overthrow of its president. Mr. Damiba had just returned from addressing the United Nations General Assembly in New York as Burkina Faso’s head of state. Tensions, though, had been mounting for months. Click here to read...
Thai Prime Minister to Stay in Office After Court Ruling
Thailand’s Prime Minister, Prayuth Chan-ocha, will remain in office after the country’s constitutional court ruled that he hadn’t exceeded his term limit, a victory for the leader ahead of elections next year. The verdict came in a case filed by opposition parties claiming Mr. Prayuth, a former army chief who led a coup in 2014, had reached the eight-year limit imposed by the country’s constitution. They claimed his term began after the coup in 2014 when Mr. Prayuth was elected as prime minister by an interim legislature that was handpicked by his junta. The court’s nine-member bench ruled, six to three that it began in April 2017, after a constitution written by Mr. Prayuth’s government took effect. The decision reinstates Mr. Prayuth, who was suspended from office in late-August as the court weighed the decision. “I would like to express my great respect to the ruling of the Constitutional Court,” Mr. Prayuth said in a Facebook post following the ruling. He said his suspension was an opportunity to reflect on his priorities as leader during the remainder of his time in office. Mr. Prayuth has come under increasing pressure from pro-democracy activists who oppose the coup and say his government is illegitimate, as well as critics of his administration’s handling of the Covid-19 pandemic. Click here to read...
Israel, EU hold 1st high-level talks since 2012
The European Union and Israel held on Oct 03 in Brussels their first high-level talks since 2012, according to a statement issued on behalf of Israeli Prime Minister Yair Lapid. "The EU is Israel's main trading partner," said Lapid, who took part in the EU-Israel Association Council dialogue forum via video conference, adding Israel's new government has set the improvement of the political and economic ties with the EU as one of its main goals since its formation in June last year. The forum "will allow us to advance economic ties between Israel and the EU, and strengthen our fight to lower the cost of living, in both Israel and Europe," he noted. Meanwhile, the EU's High Representative for Foreign Affairs and Security Policy Josep Borrell, who heads the European side of the talks, welcomed Lapid's support for a two-state solution with the Palestinians in his address to the UN General Assembly in September, Israel's Ynet news site reported. The EU wishes to see the beginning of a political process that can lead to the end of the Israeli-Palestinian conflict and "a comprehensive regional peace," Borrell said. Click here to read...
Iran not to leave nuclear negotiation table, seeks "strong" agreement: FM
Iranian Foreign Minister Hossein Amir-Abdollahian said that the Islamic republic will not leave the negotiation table aimed at the revival of the 2015 Iranian nuclear deal, the official IRNA news agency reported on Sept 30. "We are serious about achieving an agreement, and we will not hesitate to reach a good, strong, and stable deal. We will continue our efforts, and we will not leave the negotiating table," Amir-Abdollahian told IRNA. "It is the American side that must show now whether it has necessary courage to make a decision on this issue or not," he was quoted as saying. The Iranian diplomat pointed to the latest EU-drafted proposal to settle differences between Iran and the United States concerning the restoration of the nuclear pact, formally known as the Joint Comprehensive Plan of Action (JCPOA), and said that the U.S. response had some "ambiguities." "After we received the opinions of the American side, we saw that in some issues that are important and fundamental for us, the American side had made the text interpretable and created some ambiguities," he said, adding that one of the dimensions of "strengthening" the text is "clarification" so that the readers can have a single understanding of that text. Besides, more important for Iran is the implementation of the commitments under a possible agreement, he stressed. Click here to read...
Health
WHO sounds alarm over cholera outbreaks
Cholera outbreaks have been reported in 26 countries this year alone, and the average fatality rate has risen significantly, the World Health Organization (WHO) said on Sept 30. “After years of declining numbers, we are seeing a very worrying upsurge of cholera outbreaks around the globe over the past year,” Philippe Barboza, WHO’s team lead for cholera and epidemic diarrheal diseases, said at a press briefing in Geneva.Emphasizing that “the outbreaks themselves are larger and more deadly,” Barboza revealed that the average fatality rate this year was already three times higher compared to five previous years. He expressed concern about outbreaks in Syria, the Horn of Africa and in parts of Asia, in particular Pakistan, which has been battling devastating floods. Barboza explained that “extreme climate events,” such as floods, cyclones or droughts, have become an important cause of cholera outbreaks, along with poverty and conflict. By further reducing access to clean water, natural disasters create “an ideal environment for cholera to thrive,” the official said. He also called on countries to “act now” to avoid further aggravating the situation. As cholera vaccines are not easily available, Barboza said, it is important “to find ways to engage more manufacturers.” Click here to read...
Trains leaving Xinjiang suspended as region’s latest epidemic becomes most difficult major public health emergency in local history
The latest epidemic outbreak has become the most difficult major public health emergency to prevent and control in local history, during which the nucleic acid testing has become the biggest weakness, said officials in Northwest China's Xinjiang Uygur Autonomous Region as 91 new local asymptomatic cases were recorded on Oct 04, bringing the total to 354 in the region. The current round of epidemic prevention and control work in Xinjiang has not achieved the goal of "dynamic zero-COVID" for two months not only due to the reasons of strong infectiousness, fast transmission and short incubation period of the Omicron BA.5.2 variant, but also because of some loopholes in the anti-epidemic work, Liu Sushe, vice chairman of the regional government, said at a press conference on Tuesday evening. The latest epidemic, which broke out on July 30 in Xinjiang, has spread to 37 corps of counties, cities and districts of 13 prefectures, which has become a major public health emergency with the fastest transmission speed, the widest coverage, the largest number of infected people, and the greatest difficulty in prevention and control in the history of Xinjiang, Liu said. Click here to read...
Shanghai establishes virus research institution to deepen sharing mechanism; virologist Guan Yi appointed as chief
The Shanghai Virus Research Institution was officially established in Shanghai on Oct 03, with internationally renowned virologist Guan Yi appointed as the first chief of the institute. The new institute is intended to deepen the cooperation and sharing mechanism in the field of virology research. The institute will also gradually form extensive strategic cooperative relations with relevant enterprises both at home and abroad, and build a platform for the transformation of research achievements, in order to promote the development of the bio-pharmaceutical industry in Shanghai. Guan is the director of the State Key Laboratory of Emerging Infectious Diseases of the University of Hong Kong (HKU). He initiated the SARS etiological investigation in South China's Guangdong that resulted in the Department of Microbiology at HKU being the first research team to identify this emerging coronavirus, according to the official website of HKU. The institute was jointly built by Shanghai municipal people's government and Shanghai Jiao Tong University. Click here to read...
