Economic
U.S. and China agree to new dialogue on trade, chip export curbs
U.S. Commerce Secretary Gina Raimondo and Chinese Commerce Minister Wang Wentao agreed in Beijing on Aug 28 to create a working group covering trade and investment issues, as well as to exchange information regarding semiconductor-related export controls. Senior government officials and representatives from the private sector will participate in the new working group, according to a statement issued after the meeting by the U.S. Commerce Department. Meetings will be held twice a year at the vice ministerial level, starting in the U.S. in early 2024. Export controls on chips and other key products will be discussed separately at the assistant secretary level. The first meeting will be held in Beijing on Aug 29. The two sides also agreed on having their commerce ministers meet in person at least once a year, to prevent bilateral tensions from escalating unexpectedly. Their agreement comes at a time when concern is growing on both sides that heightened tensions are detrimental to U.S. and Chinese economic growth. Raimondo said the countries can move forward if they stay open and realistic. The U.S. and China have imposed escalating restrictions on exports related to semiconductors since October 2022, when the U.S. banned exports of cutting-edge chip technology and equipment to China. Click here to read...
Factory strikes flare up in China as economic woes deepen
A flurry of worker protest videos have surfaced on Douyin, the Chinese version of TikTok, in recent months as slowing demand and supply chain shifts heap pressure on the country's factories. Earlier this year, a user named Jingjing's Memory posted a video of factory workers standing in front of the gate of Huijuchang Textile in the city of Jiangyin. Text overlaid on the footage reads, "The place I worked at for over 20 years went out of business, now I have no social security and no money." This video is just one of dozens collected into a "Strike Map" compiled by China Labour Bulletin, a nonprofit organization advocating for blue collar workers. The map shows worker protests and strikes across the mainland, each marked with reasons for protests, number of demonstrators and screenshots of social media evidence. "Worker strikes have reached a new height after the pandemic," Aidan Chau, a researcher at CLB, told Nikkei Asia. "Many protests are related to slowing demand in international trade." Strikes and protests increased sharply in 2023, according to a report by CLB that counted 741 cases in the first half of the year compared to just 830 for all of 2022. At this rate, CLB projects that there could be at least 1,300 protests by the end of the year. Click here to read...
China lets Baidu, others launch ChatGPT-like bots to public, tech shares jump
Four Chinese tech firms, including Baidu Inc and SenseTime Group, on Aug 31 launched their artificial intelligence (AI) chatbots to the public after receiving government approval, as China's government pushes to widen the use of such products amid competition with the United States. Baidu, China's leading online search provider, said in a statement that its ChatGPT-like chatbot, Ernie Bot, was now fully accessible to the public. A SenseTime spokesperson told Reuters via email that its chatbot, SenseChat, was also now "fully available to serve all users". Two AI startups, Baichuan Intelligent Technology and Zhipu AI, also announced similar public launches on Aug 31. Shares in Baidu and SenseTime jumped in early Hong Kong trade, gaining 3.1 per cent and 2.7 per cent respectively in a broader market that was trading 0.4 per cent lower. Unlike other countries, China requires companies to submit security assessments and receive clearance before releasing mass-market AI products. Authorities have recently accelerated efforts to support companies developing AI as the technology increasingly becomes a focus of competition with the United States. Chinese media reported that a total of 11 firms had received approvals from the government, including TikTok owner ByteDance and Tencent Holdings. Click here to read...
China extends tax breaks for foreign workers until 2027
China will extend preferential tax policies for foreign nationals working in the country through to the end of 2027, the finance ministry said on Aug 29, in a boon to foreign firms struggling to attract talent post-COVID. The government proposed scrapping the provision of non-taxable allowances for foreign workers in 2022 but decided to extend the scheme on a review basis until the end of this year. Foreign chambers of commerce and business organizations in China had been seeking urgent clarification on whether the government would further extend the policy that enables expatriates to benefit from taxable deductions on house rental, children's education, language training and other costs. "We believe that this will help to curtail further outflows of qualified international talent, while also providing multinational companies with clarity on their talent strategy regarding the deployment of expatriate staff and structuring of their packages," said Kiran Patel, senior director at the China-Britain Business Council. "This announcement to extend the existing individual income tax regime is a genuine statement of commitment from the Chinese government to the multinational companies operating here." As China's economy slows, authorities have struggled to revive foreign investment with global firms unimpressed by new incentives they say fall far short of sweeteners once used to attract overseas money. Click here to read...
Chinese banks sharply increasing market share in Russia – FT
China’s exposure to the Russian banking sector quadrupled in the 14 months through March of this year, while Western institutions pulled back their operations in the country, the Financial Times reported on Sept 03, citing data by the Kiev School of Economics. According to the outlet, the Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China boosted their combined exposure to Russia from $2.2 billion to $9.7 billion during that period. At the same time, the overall proportion of Russian banking assets held by foreign lenders shrank from 6.2% to 4.9% in the 14 months to March. According to the report, the moves by the four Chinese banks, which are among the largest in the country, are part of Beijing’s efforts to promote the renminbi in the global financial market. “The loans by Chinese banks to Russian banks and credit institutions, which are for the most part a case of the yuan taking the place of dollars and euros, show the sanctions are doing their job,” Andrey Onopriyenko, the deputy development director at the Kiev School of Economics, explained to FT. The report noted that prior to the start of the military operation in Ukraine, the Chinese currency accounted for less than 1% of Russia’s export payments, while more than 60% were made in what Moscow now refers to as “toxic currencies,” such as the dollar and euro. Click here to read...
Japan at 'inflection point' in 25-year battle with deflation - govt
Japan may be at an inflection point in its 25-year battle with deflation as price and wage rises show signs of broadening, the government said on Aug 29, signalling its conviction the economy was nearing an end to prolonged stagnation. The optimistic view echoes that of the Bank of Japan (BOJ), which has said corporate price- and wage-setting behaviour was changing and could pave the way for phasing out the country's massive fiscal and monetary support. "Japan has seen price and wage rises broaden since the spring of 2022. Such changes suggest the economy is reaching a turning point in its 25-year battle with deflation," the government said in its annual economic white paper. "We shouldn't dismiss the fact a window of opportunity may be opening to exit deflation," as inflation perks up and public perceptions about persistent price declines abate, it said. The report stopped short of saying Japan has fully eradicated the risk of deflation returning, pointing to a "still moderate pace" of increase in services prices. "In determining the trend of inflation, it's important to look at services prices" as they reflect domestic demand and wages more vividly than goods prices, the report said. The change in tone on deflation risks underscore the government's shifting priorities, as rising commodity costs and a tightening job market push up inflation and heighten public worries over higher living expenses. Click here to read...
US denies blocking chip sales to Middle East
The Biden administration "has not blocked chip sales to the Middle East," a U.S. Department of Commerce spokesperson said on Aug 31, after disclosures that Washington had expanded export license requirements for Nvidia and Advanced Micro Devices artificial-intelligence chips. Nvidia revealed the new rules in a regulatory filing earlier this week. A person familiar with the matter confirmed on Aug 30 that AMD is affected by the change. The Commerce Department declined to comment on whether it had imposed new requirements on specific U.S. companies. Neither Nvidia nor AMD immediately returned requests for comment on Aug 31. The new rules would require Nvidia to seek licenses before selling its flagship chips to some Middle Eastern countries, the filing said. Neither Nvidia nor AMD have disclosed whether they have applied for such licenses and whether they have been approved or denied. U.S. officials usually impose export controls for national security reasons. A similar move announced last year signalled an escalation of the U.S. crackdown on China's technological capabilities, but it was not immediately clear what risks were posed by exports to the Middle East. Many of the U.S. curbs on technology exports to China amount to a blanket denial of all licenses. Click here to read...
Bhutan halves $200 daily tourist tax to spur sluggish recovery
The tiny Himalayan kingdom of Bhutan on Sept 01 halved its daily tourist tax, among the highest in the world, as it looks to attract more visitors and hasten the industry's slow recovery from the COVID-19 pandemic. Dollar-paying visitors will now be charged $100 a night as a sustainable development fee (SDF), instead of $200. Children aged 6 to 12 will be eligible for an additional 50% off the lowered levy. The change comes nearly a year after Bhutan raised eyebrows by roughly tripling the daily charge as it emerged from a pandemic closure of about two and a half years, determined to reinforce its "high quality, low volume" tourism strategy. "Although arrival numbers are on track with the forecast targets, the overall economic impact and tourism recovery is still low and slow," said Dorji Dhradhul, director general of the department of tourism. "Therefore, we hope the reduction will attract more guests and boost the economy." The discount, effective until Aug. 31, 2027, is aimed at increasing tourist arrivals "in view of the important role in generating employment; earning foreign exchange; realizing the potential for spillover benefits for ancillary industries; and in boosting overall economic growth," the government said in a statement. Click here to read...
Saudi Arabia’s forex reserves plunge
Saudi Arabia’s foreign currency reserves plunged by more than $16 billion in July in the biggest slump since the outbreak of the Covid pandemic in 2020, the country’s central bank revealed in its monthly report. The reserves in net foreign assets dipped to 1.53 trillion riyals ($407 billion), after rising in May and June, to the lowest level since 2009 as Riyadh cut oil production in a bid to balance prices. Oil production in Saudi Arabia is expected to average 9 million barrels per day (bpd) in July, August, and September following a unilateral voluntary output cut of 1 million bpd that the country enacted in order to “support the stability of the oil market.” The output cut was initially announced only for the month of July but was subsequently extended to August and September. “The net foreign asset position should improve in September, especially when the first performance-linked dividend distribution” arrives from the country’s oil major Saudi Aramco, said Monica Malik, the chief economist at Abu Dhabi Commercial Bank. The company announced earlier this month that it planned to distribute performance-linked dividends over six quarters beginning in the third quarter of 2023. Saudi Arabia’s receipts suffered from lower crude prices this year compared to 2022, when Riyadh earned nearly $326 billion in windfall tax. Click here to read...
Russia Weighs Unified Fertilizer Trader to Boost Pricing Power
Russia is considering setting up a unified trading company to export fertilizers in a bid to increase its pricing influence on global markets. The idea was proposed in July by UralChem PJSC’s founder Dmitry Mazepin, two people familiar with the situation said, declining to be identified because the information isn’t public. It has since been discussed by Industry Minister Denis Manturov and Prime Minister Mikhail Mishustin, the people and another person close to the government said. No decision has been taken and it’s not clear when the proposal will be discussed again, all three people said. Russia is the world’s largest fertilizer maker, with produce accounting for about 15% of global annual consumption. While fertilizer companies haven’t been included in international sanctions over Russia’s war in Ukraine due to their importance for global food security, Baltic ports have stopped handling most products, contributing to a decline in shipments. An exodus of global shipping companies, some international banks and insurers from Russia has also made it harder to send goods abroad. Some large fertilizer makers don’t support the idea out of concern it will hurt business, two of the people said. Exports of most types of fertilizers have already recovered to their pre-war levels, so producers don’t see how the proposal will benefit them, the people said. Click here to read...
First Russian transit cargo travels through Iran to Saudi Arabia
A transit train from Russia hauling 36 containers passed through the Iranian transport corridor to Saudi Arabia over the weekend, the head of Iran Railways, Miad Salehi, announced on Aug 27, according to media reports. Salehi said it was the first-time transit cargo from Russia had traveled via Iran’s Incheh Borun rail border near Turkmenistan. It was dispatched to the port city of Bandar Abbas on the Strait of Hormuz and will be transferred from there to the Saudi Arabian port city of Jeddah by sea, the official explained. Iran’s Secretary of the Supreme Council of Free Economic Zones Hojatollah Abdolmaleki earlier told RIA Novosti that one of the new transport corridors within the wider International North-South Transport Corridor (INSTC), passing through Iranian territory, has begun to operate. According to him, the new corridor links Russia and Arab countries by rail through Iran and by sea through the Persian Gulf. The INSTC, which has been touted as an alternative to the Suez Canal, is a planned 7,200km (4,473 miles) multi-mode transit system that will connect ship, rail, and road routes for moving cargo between Russia, Iran, Azerbaijan, India, and Central Asia. The construction of the INSTC began in the early 2000s, but developing it further has taken on a new impetus in light of Western sanctions, which have forced Russia to shift its trade flows from Europe to Asia and the Middle East. Click here to read...
Russia won’t renew grain deal until demands met, Putin tells Erdogan
Russian President Vladimir Putin has reiterated his stance on reinstating a United Nations-brokered deal to safely ship Ukrainian grain across the Black Sea only after the West meets Moscow’s demands on its agricultural exports. The Russian president’s remarks on Sept 04 came after a meeting with his Turkish counterpart Recep Tayyip Erdogan in the Black Sea city of Sochi in the hope of reviving the agreement seen as vital for global food supplies, especially in Africa, the Middle East and Asia. Russia refused to extend the deal in July, complaining that a parallel agreement promising to remove obstacles to Russian exports of food and fertiliser had not been honoured. It said restrictions on shipping and insurance hampered its agricultural trade, though it has shipped record amounts of wheat since last year. Putin reiterated those complaints and said that the Black Sea corridors should not be used for military purposes. He told reporters that if those commitments were honoured, Russia could return to the deal “within days”. Erdogan also expressed hope that a breakthrough could come soon. He said Turkey and the UN – which both brokered the original deal – have put together a new package of proposals to unblock the issue. Click here to read...
Water Woes Cloud Green Hydrogen's Future in The Middle East
Following the recent COP climate summits, and the push from several governments around the world to move away from fossil fuels in support of a green transition, more and more companies are investing in green hydrogen projects. Energy firms are developing huge green hydrogen plants in various areas of the world, while governments and regional organisations are developing major transport corridors for the clean fuel. While developing the green hydrogen industry sounds like a good way to cut carbon and produce clean energy, it is highly important to consider where this hydrogen is being made. Green hydrogen production requires vast amounts of water, which is fairly easy to supply in regions such as Europe and North America, but less so in areas of drought, such as the Middle East and parts of Africa. Producing green hydrogen in countries such as Saudi Arabia and Tunisia requires the large-scale desalination of seawater to provide water for the production process. The EU views Tunisia, one of the driest countries in Africa, as key to producing green hydrogen for export to Europe. It is easy to produce the solar power needed for electrolysis from the abundant sun rays available in the country, but it is less easy to source the water needed for the process. To acquire the water needed for green hydrogen production, companies must use and desalinate water from the Mediterranean Sea. However, a 2022 report for the Heinrich Böll Foundation showed that this is typically a dirty, energy-intensive, water-guzzling process. Click here to read...
London’s Listing Exodus Threatens Its Status as Global Financial Hub
London’s status as a global financial hub may not be at risk – yet – but its equity markets are certainly out of favour with the wider world. This past month saw two more of London’s listed outfits say they were pondering a state-side departure. Plus500, the Israeli retail investing platform, said they’d be worth more across the Atlantic. And YouGov, the polling firm adapt at reading a room, also confirmed they’d be looking at a secondary listing in New York in due course. They joined a lengthy list of firms looking to chance their arm on Wall Street. Arm, the UK chips firm, will list in the US, whilst gambling giant Flutter is set for a secondary listing. Commodity broker Marex, based in London, has also confirmed it would look at New York if it chose to list rather than letting equity markets this side of the pond have their wicked way. It wasn’t supposed to be this way. Two- and a-bit years on, the City’s publicly-traded indices are still haemorrhaging listed companies. It’s not just the big boys. There were 155 small cap firms listed on the FTSE in 2018. That number is now 117. Ask around the City and the reasons proffered for London’s demise are varied. Some simply say there’s more cash in New York. Bosses quietly complain institutional investors are biased towards short-term returns rather than long-term value. Click here to read...
China, Japan Compete Over Infrastructure at Asean Summit
Chinese Premier Li Qiang is set to inspect a high-speed train funded by his nation in Indonesia, even as rival Japan underscores its willingness to help the region develop transport infrastructure. Li and Japanese Prime Minister Fumio Kishida are attending the Association of Southeast Asian Nations Summit that opened this week in Jakarta, with ties between their countries in a freeze over Japan’s discharge of treated wastewater into the ocean from the crippled Fukushima nuclear plant. The two Asian giants have often competed to help provide infrastructure to nations across the region. Many in Japan were disappointed when it lost out to China on the project for the Jakarta-Bandung high-speed rail link. While construction of the railroad has been beset by problems and delays, the current plan is for commercial operations to begin Oct. 1 after a soft opening on Sept 01. Li’s symbolic train visit with Indonesia’s Coordinating Minister of Maritime and Investment Affairs Luhut Panjaitan comes hours after Kishida told a forum his country would seek to support transport infrastructure development in Asean. He made the topic chief among six areas targeted for cooperation as Japan celebrates the 50th anniversary of relations with the group. Indonesian President Joko Widodo — who’s better known as Jokowi — told a later meeting that Asean hopes Japan can ramp up its contributions to the region’s infrastructure. Asean needs $184 billion in annual spending, Jokowi said. Click here to read...
Strategic
Chinese spy agency suggests that a Biden-Xi meeting hinges on ‘sincerity’
China’s top security agency has hinted that any meeting between President Xi Jinping and U.S. President Joe Biden in San Francisco later this year will depend on the United States “showing sufficient sincerity.” Biden on Sept 03 expressed disappointment that Xi was not attending an upcoming summit of G20 leaders in India but added that he was going to “get to see him.” Biden did not elaborate but the next likely opportunity for Biden to hold talks with Xi, as the two countries seek to stabilize troubled relations, is an Asia-Pacific Economic Cooperation (APEC) summit in San Francisco in November. “To truly realize ‘from Bali to San Francisco,’ the United States needs to show enough sincerity,” the Ministry of State Security said in a post on Sept 04 on its WeChat social media page. It was referring to the last meeting between Biden and Xi on the sidelines of a G20 summit on Indonesia’s resort island of Bali in November last year. It did not mention the APEC summit in its post. It is unclear if the ministry, which is China’s main intelligence agency, is privy to, or has influence over, Xi’s considerations on diplomatic engagements. This weekend, Premier Li Qiang will lead a delegation to a G20 summit in New Delhi, the Chinese government has announced, all but confirming that Xi would not attend. Click here to read...
US approves first arms to Taiwan under foreign aid programme
President Joe Biden's administration has for the first time approved direct US military aid to Taiwan under an assistance programme aimed at foreign governments, officials said on Aug 30, as worries grow over China. The State Department informed Congress on Aug 29 of the US$80 million package, which is small compared with recent sales to Taiwan but marks the first assistance to Taipei under the Foreign Military Financing programme, which generally involves grants or loans to sovereign countries. The move is sure to anger China. For five decades, the United States has officially recognized only Beijing although Congress, under the Taiwan Relations Act, requires the supply of weapons to the self-governing democracy for its defence. Successive US administrations have done so through sales rather than direct aid to Taiwan, with formal statements speaking in the tone of business transactions with the island's de-facto embassy in Washington. The State Department insisted that the first-ever aid under the programme did not imply any recognition of the sovereignty of Taiwan. "Consistent with the Taiwan Relations Act and our longstanding One China policy, which has not changed, the United States makes available to Taiwan defence articles and services necessary to enable it to maintain a sufficient self-defence capability," a State Department spokesperson said. Click here to read...
Ukraine security guarantees won’t be ready this year – WSJ
Ukraine’s Western backers are unlikely to finalize security guarantees for Kiev by the end of this year, the Wall Street Journal has reported. With only the US and UK having started talks, a lot of question marks still hang over the nature and scope of any future commitments, the media outlet claims. In an article on Aug 28, the WSJ, citing anonymous European officials, reported that security guarantees are expected to take many months to thrash out, with some of the bilateral arrangements likely to be agreed only next year. For the time being, there is no consensus on how detailed the pledges should be, the newspaper claimed. Among the thorny issues to be resolved is reportedly the question of correctly predicting Ukraine’s future military needs and ensuring that Western defence industries can fulfill any such promises without undermining their own countries’ defence capabilities. To date, the US and the UK are the only two nations to have set the process in motion, with the State Department announcing that American and Ukrainian officials held their first meeting in early August. Several days later, London also confirmed the start of negotiations. According to the WSJ, US officials are hoping to hold a second round of talks in the coming weeks, with French representatives expecting to sit down with the Ukrainians around the same time as well. Click here to read...
Africa faces ‘climate risk blind spot’ amid lack of weather radar
The first Africa Climate Summit opens on Sept 04 in Kenya to highlight the continent that will suffer the most from climate change while contributing the least. Significant investment in Africa’s adaptation to climate change, including better forecasting, will be an urgent goal at the September 5-6 meeting. At the heart of every issue on the agenda, from energy to agriculture, is the lack of data collection that drives decisions as crucial as when to plant – and when to flee. The African continent is larger than China, India, and the United States combined. Yet, Africa has just 37 radar facilities for tracking weather – an essential tool along with satellite data and surface monitoring, according to a World Meteorological Organization (WMO) database. Europe has 345 radar facilities. North America, 291. “The continent, at large, is in a climate risk blind spot,” said Asaf Tzachor, a researcher at the Centre for the Study of Existential Risk at the University of Cambridge. In August, he and colleagues warned in a commentary for the journal Nature that climate change will cost Africa more than $50bn every year by 2050. By then, Africa’s population is expected to double. The widespread inability to track and forecast the weather affects key development choices, their commentary said. “There is no point investing in smallholder farms, for example, if floods are simply going to wash them away.” Click here to read...
U.S. nuclear boss arrives in Japan for first visit
Gen. Anthony Cotton, commander of the U.S. Strategic Command, arrived in Tokyo on Sept 01 as part of his first visit to the region since assuming office last December. Cotton oversees America's nuclear triad, which consists of land-launched intercontinental ballistic missiles (ICBMs), sea-based ballistic missile submarines (SSBNs) and air-based strategic bombers. Cotton landed Sept 01 morning at Yokota Air Base in western Tokyo, flying in from South Korea. He is expected to meet Gen. Yoshihide Yoshida, the highest-ranking officer in Japan's Self-Defense Forces, and is scheduled to visit the prime minister's office and the Foreign Ministry. His visit is aimed at reassuring a key ally over America's extended deterrence, or "nuclear umbrella." Earlier this year, Cotton told the U.S. Congress that the number of Chinese land-based fixed and mobile ICBM launchers now exceeds the U.S. He has noted that China has been building hundreds of new ICBM silos in recent years -- a move inconsistent with Beijing's long-professed stance of maintaining a "minimum" deterrence posture. The SDF's Yoshida recently told Nikkei in an interview that his forces cannot maintain Japan's security with its current posture, and that the country needs to fundamentally strengthen its defensive capabilities as well as sustaining extended deterrence with the U.S. Click here to read...
U.S., Indonesia and 5 other nations hold war drills amid China concerns
Soldiers from the U.S., Indonesia and five other nations began annual training exercises Aug 31 on Indonesia’s main island of Java while China’s increasing aggression is raising concern. American and Indonesian soldiers have held the live-fire Super Garuda Shield drills since 2009, and Australia, Japan and Singapore joined last year. The United Kingdom and French forces are participating in this year’s exercises, with a total of about 5,000 personnel. China sees the expanded drills as a threat, accusing the U.S. of building an Indo-Pacific alliance similar to NATO to limit China’s growing military and diplomatic influence in the region. Brunei, Brazil, Canada, Germany, India, Malaysia, Netherlands, New Zealand, Papua New Guinea, Philippines, South Korea, and East Timor also sent observers to the two-week exercises in Baluran, a coastal town in East Java province. The commanding general of U.S. Army Pacific, Gen. Charles Flynn, said the 19 nations involved in the training are a powerful demonstration of multilateral solidarity to safeguard a free and open Indo-Pacific region. “Super Garuda Shield 2023 builds on last year’s tremendous success,” Flynn said in a statement released by the U.S. Embassy in Jakarta on Aug 29, “This joint, multinational training exercise displays our collective commitment and like-minded unity, allowing for a stable, secure, and more peaceful, free and open Indo-Pacific.” Click here to read...
Russia, Central Asia locked in tug of war over Ukraine recruiting
Central Asian countries are attempting to curb Russian recruiting of their citizens for its war in Ukraine, while Moscow seeks to avoid stirring public discontent with another large wave of domestic mobilization. So far this year, Kyrgyzstan has sentenced one citizen to 10 years in prison and detained another for allegedly serving as mercenaries. In Kazakhstan at the end of July, a prosecutor's office in a region bordering Russia warned citizens about the proliferation of online ads urging them to join the war, noting stiff legal penalties for doing so. This came a few months after Kazakhstan's National Security Committee said it was investigating 10 cases of citizens' alleged involvement in the war, without specifying which side they had taken. Also this month, in response to a flood of goods branded with the Russian war symbols "V" and "Z," Kazakh prosecutors proposed banning the signs and making it a civil offense to distribute products bearing them, among other sensitive political symbols. The recruitment and propaganda efforts -- and the pushback against them -- highlight increasingly uncomfortable ties between Russia and the former Soviet bloc states that have largely remained in its orbit. Reliant on Moscow economically and for security, they have avoided condemning the war. But they have also refrained from endorsing it, and abstained from United Nations votes on the matter, rather than siding with Russia. Click here to read...
China state companies step up study of 'Xi Thought' in hard times
As China's economic downturn sparks global concern, Beijing is stepping up compulsory study of President Xi Jinping's political doctrine and writings, particularly within state-owned enterprises and institutions. Nikkei Asia has spoken to a dozen employees of state banks, airlines, government institutions and private companies. All requested anonymity, as discussion of the ideological training is deemed sensitive. But together they painted a picture of a growing emphasis on "Xi Thought" -- an apparent effort to consolidate the president's power and shore up confidence in his leadership in the face of economic headwinds. A senior executive from a state-owned bank's overseas branch was recently shocked by a video call with his Beijing headquarters. A top manager spent about an hour and a half -- out of a two-hour meeting -- talking about his reflections after studying Xi's works. The manager spoke of putting the president's books on his desk so that he could go to them for answers whenever he has trouble at work. "I felt it was surreal to see him talk that way. I've known him for more than a decade and he has been a normal person, but his personality seemed to be twisted at that moment," the executive recalled. "I have no idea if he really had that reflection or he said that only because he had to." Click here to read...
Singapore's Tharman clinches presidential election
Singapore's former Deputy Prime Minister Tharman Shanmugaratnam will be the city-state's next president, after winning 70.4% of votes in Sept 01's election. Results early Sept 02 showed the former longtime member and leader of the ruling People's Action Party beating his rivals in a landslide. Ng Kok Song, a former chief investment officer at sovereign wealth fund GIC, won 15.7% of the votes, and Tan Kin Lian, a former insurance company head under the national trade union body NTUC, received 13.9%. About 2.5 million Singaporeans voted in the first contested presidential election in over a decade. "It's a vote of confidence in Singapore," said Tharman, most recently a senior minister in Prime Minister Lee Hsien Loong's cabinet, after a sample count before the release of official results showed him clinching a clear lead. "It's a vote of optimism for a future in which we can progress together and support each other as Singaporeans." He added, "It will be my duty to use the roles and responsibilities of the president to advance this future of optimism." In a statement after the results were announced, the prime minister said, "In this election, both voters and candidates have shown a greater understanding of the roles and duties of the president, which bodes well for Singapore. Mr. Tharman has a long and distinguished record of public service. I have every confidence that he will carry out his duties as president with distinction." Click here to read...
North Korea stages ‘tactical nuclear attack’ drill
North Korea conducted a simulated "tactical nuclear attack" drill on Sept 02 that included two long-range cruise missiles, state media reported on Sept 03, as leader Kim Jong Un inspected shipbuilding and munitions factories. The KCNA news agency said the drill was carried out early on Sept 02 to "warn enemies" that the country would be prepared in case of nuclear war as Pyongyang again vowed to bolster military deterrence against Washington and Seoul. The two cruise missiles carrying mock nuclear warheads were fired towards the West Sea of the peninsula and flew 1,500 kilometres (930 miles) at a preset altitude of 150 meters. A separate statement said Kim visited Pukjung Machine Complex, which produces marine engines, and a major munitions factory to stress the importance of strengthening Pyongyang's naval forces. "He affirmed that a future plenary meeting of the Central Committee of the WPK (Worker's Party of Korea) would set forth an important modernization of the complex and the development direction of the shipbuilding industry," the KCNA statement said. The statement did not specify the date of his visit. The latest missile test came just after the joint annual summertime exercises between South Korea and the U.S., known as Ulchi Freedom Shield, came to a close on Aug 31 after an 11-day run, featuring air drills with B-1B bombers. Click here to read...
Russia proposes joint navy exercise with North Korea, China
Russia's defence minister has proposed to North Korean leader Kim Jong Un that their countries hold a naval exercise, along with China, South Korea's Yonhap news agency reported on Sep 4, citing South Korea's intelligence agency. Russian Minister of Defence Sergei Shoigu visited North Korea for the 70th anniversary of the end of the Korean War, celebrated in North Korea as "Victory Day", in July when he met Kim. They attended a defence exhibition featuring North Korea's banned ballistic missiles, North Korean state media reported at the time. Yonhap reported that Shoigu had made the proposal for a three-way naval exercise to Kim during his visit but it provided no details. South Korea's National Intelligence Service told the National Assembly that Shoigu appeared to have held a private meeting with Kim to agree on broad military expansion, Yonhap reported. Russia and North Korea have recently called for closer military ties but North Korea has denied having any "arms dealings" with Russia. White House national security spokesman John Kirby told a press briefing last month that Shoigu had tried on his visit to North Korea to sell artillery ammunition to Russia. The United States recently imposed sanctions on three entities it accused of being tied to arms deals between North Korea and Russia. Click here to read...
Dozens of people injured in clashes between rival Eritrean groups in Israel
More than 100 people have been injured in clashes between rival groups of protesters from Eritrea in the Israeli city of Tel Aviv with the police firing warning shots in the air to disperse the demonstrators. Fighting broke out on Sept 02 after hundreds of Eritreans critical of their government approached a venue where a pro-government event was being held. Protesters broke through police barriers and smashed windows of police and other cars as well as windows of nearby stores, the Haaretz newspaper reported. They were also able to enter the venue near the Eritrean embassy and smash up chairs and tables. Magen David Adom, Israel’s emergency medical service, said it treated 114 people, eight of whom were in serious condition. Footage on social media showed Eritrean government supporters beating anti-government protesters with clubs. Reuters journalists saw men with head wounds and bloodied arms, some lying on the ground of a children’s playground. Al Jazeera’s Paul Brennan, reporting from occupied East Jerusalem, said the police did not anticipate the intensity of the violence that broke out. “The demonstrators were able to break through the barriers pretty rapidly. The police had to respond with tear gas, stun grenades. There were running battles between the demonstrators and the police in riot equipment,” he said. Click here to read...
Gabon President Bongo detained in coup attempt after winning third term
A group of senior Gabonese military officers on Aug 30 announced that they had taken power and detained President Ali Bongo, minutes after the state election body declared the winner of Saturday’s general election. Appearing on state-run television channel Gabon 24, the officers said they represented all security and defence forces in the Central African nation. They said the election results were cancelled, all borders closed until further notice and state institutions dissolved. Loud sounds of gunfire could be heard in the capital Libreville, the Reuters and AFP news agencies reported after the television appearance. There was no immediate comment from members of the deposed government. Bongo, 64, who was last seen in public when he cast his vote in the election on Aug 26, is now under house arrest, the coup leaders have said. Bongo’s son and close adviser Noureddin Bongo Valentin, his chief of staff Ian Ghislain Ngoulou as well as his deputy, two other presidential advisers and the two top officials in the ruling Gabonese Democratic Party (PDG) “have been arrested,” a military leader said. They are accused of treason, embezzlement, corruption and falsifying the president’s signature, among other allegations, he said. “In the name of the Gabonese people … we have decided to defend the peace by putting an end to the current regime,” the officers said in a statement. Click here to read...
Afghanistan’s Quest for Water Worries Central Asian Neighbours
Recently, Radio Free Europe/Radio Liberty reported the progress of Afghanistan’s Qosh Tepa Irrigation Canal, $670 million, 285-kilometer canal to irrigate 550,000 hectares of land by diverting 25% of the flow of the Amu Darya River. Irrigating northern Afghanistan has been a priority for Kabul since Afghanistan’s first president, Mohammad Daud Khan, planned the canal in the 1970s. The Amu Darya, which is Afghanistan’s border with Tajikistan, Uzbekistan, and Turkmenistan, originates in the Hindu Kush and Wakhan in the Pamir Highlands of Afghanistan, and flows 2,540 kilometres to the Aral Sea, between Uzbekistan and Kazakhstan. In 2018, the U.S. Agency for International Development announced a feasibility study for the canal, but NATO evacuated the country before the study was complete. The Taliban resumed the project in March 2022 and has completed about 100 kilometres of the canal. The Taliban claim the canal will help ensure food security and will benefit farmers, many of them their Pashtun supporters who will migrate to the area, which is mostly inhabited by ethnic Uzbeks and Tajiks. Uzbekistan and Turkmenistan, which could lose 15% of irrigation water from the Amu Darya, addressed their concerns to the Taliban, and haven’t commented on the negotiations. Click here to read...
Pakistan Court Suspends Imran Khan’s Sentence in Corruption Case
A court in Pakistan on Aug 29 suspended former Prime Minister Imran Khan’s three-year sentence in a corruption case, a legal victory that comes amid a continuing crackdown on the popular opposition leader and his political party. The court also granted Khan bail, but it remained unclear if the politician, who began serving his sentence earlier this month, would be freed from prison. Khan has faced many investigations and allegations brought by the authorities, ahead of elections due in coming months, and aides fear he could be rearrested upon his release. Khan was convicted in a corruption case on Aug. 5 over allegations that he didn’t fully disclose the proceeds from the sale of a diamond-encrusted watch in his tax returns and asset filings. The watch was given to him when he was prime minister by Saudi Crown Prince Mohammed bin Salman. Khan has been disqualified from running for office for five years due to his conviction. Khan’s supporters say his political opponents are determined to prevent him from leading his Tehreek-e-Insaf party’s election campaign due to his popularity. The ruling is a temporary outcome, until Khan’s appeal of his conviction is decided, pointing to more political and economic turmoil ahead. Click here to read...
Health
New Covid wave sweeping world – WHO
More than 1.4 million new cases of Covid-19 and over 1,800 deaths attributed to the disease were registered around the world from July 31 to August 27, the World Health Organization said on Sept 01. The figures represent a 38% increase in the number of cases and a 50% decrease in the number of deaths from the previous 28-day period, the WHO said in its weekly bulletin. South Korea had the highest number of both new cases (1,296,710) and deaths (596), the WHO said. Italy had almost 27,000 new cases, followed by the UK with 26,000. The largest increase in new cases was in the Eastern Mediterranean (+113%), Western Pacific (+52%) and the European Region (+39%), while Africa (-76%) and South-East Asia (-48%) saw a decline. The WHO is attributing the increase in cases to the ‘Eris’ variant of the novel coronavirus, which is now the most widespread, having been found in 26% of sequences during the second week of August. The ‘Arturo’ variant was found in 22.7% of sequences in 109 countries, while ‘Kraken’ was reported by 124 countries but seems to be receding. According to the WHO, there have been more than 770 million cases of Covid-19 and over 6.9 million deaths from the virus since the beginning of the pandemic. Click here to read...
Bayer says Parkinson's stem cell therapy improves symptoms in initial trial
Bayer says Parkinson's stem cell therapy improves symptoms in initial trial
Bayer said an experimental stem cell therapy developed by its US subsidiary BlueRock had shown signs of easing Parkinson’s disease symptoms in an early 12-patient trial. The German drugmaker announced the trial had succeeded in a brief summary in June, saying it was a first for a stem-cell Parkinson's therapy, but held back details for a medical conference. In a statement on Aug 28 it said that one year after the treatment, the seven participants on a high dose had 2.16 hours longer on average with well-controlled symptoms per day and the time of worsening symptoms was 1.91 hours shorter per day for them. The five participants on a lower dose experienced 0.72 hours longer per day with well-controlled symptoms on average and the time of worsening symptoms was 0.75 hours shorter per day for them. The treatment was well tolerated with no major safety issues. “The positive outcome of this Phase I clinical trial is a clear step forward," said Christian Rommel, Bayer's head of drug research and development. For BlueRock's experimental therapy, the researchers took human pluripotent embryonic stem cells and transformed them into dopamine-producing nerve cells. They were implanted into the brain to restore neural networks destroyed by Parkinson's. Click here to read...
