Global Developments and Analysis: Weekly Monitor (18-24 March 2024)

Economic

With ‘made-by-China’ under US pressure, Mexican trade probes spark concerns over curbs

Mexican tariffs on Chinese steel products indicate a willingness to accommodate US demands, analysts said, with additional trade curbs in the run-up to November’s presidential election set to add to the concerns of Chinese producers and investors. Mexico’s Ministry of Economy imposed a provisional compensatory duty of 31 per cent on Chinese steel nail producers on March 15, according to its Official Gazette of the Federation, after concluding an anti-dumping investigation that had started in September. Chinese firms still have a chance to appeal, but the tariffs came less than two weeks after Mexico also imposed duties of between 3.68 and 12.35 per cent on steel balls imported from China after concluding another anti-dumping investigation. And according to China Trade Remedies Information, a monitoring agency affiliated with the Ministry of Commerce, more than 240 similar cases were filed against Chinese companies in recent years, representing about one tenth of the cases filed by the US. “Trade data continues to indicate the increasing participation of Chinese inputs in US-bound exports,” S&P Global Market Intelligence said on March 18. “The US will likely increase measures aimed at curtailing the rise in Chinese exports and foreign direct investment flows to Mexico, such as those applied to electric vehicle software and port cranes.” Click here to read… [2]

China chip expo shows investment buildup amid plans for huge new fund

China is expanding semiconductor supply chain investments to sustain double-digit growth in homegrown chip production capacity, focusing on mature technology while eyeing a massive new national fund to support further advances. At this week's Semicon China expo in Shanghai, state-owned Naura Technology Group, China's largest chip equipment maker, appears to tout in a video that there are machines in China that can handle the 7-nanometer production process that makes chips used in smartphones. In general, the smaller the nanometer level, the more powerful the chip -- and the more advanced equipment needed to produce it. The U.S. has sought to block China's access to American and allied chipmaking technology at advanced levels. Manufacturing equipment shown in the video does not appear to be the kind of cutting-edge technology that would fall under U.S. export restrictions. State-owned contract chipmaker Semiconductor Manufacturing International Corp. (SMIC) is believed to have reached the 7-nm level -- a more advanced node than it had been thought able to achieve -- using older equipment. Some industry watchers speculate Naura is working with SMIC. Naura is an example of Chinese President Xi Jinping's idea of "new quality productivity" through innovation. The company appears to be sending large numbers of its engineers to chip factories -- where their American counterparts are reluctant to go after Washington's crackdown -- to support operations. Click here to read… [3]

Japan expects 820,000 skilled foreign workers over next 5 years

Japan expects to take in 820,000 skilled workers from overseas over the coming five years, sharply expanding previous projections to address growing labor shortages, sources said. The figure is more than twice that for the five-year period through 2024 set in 2019 when the “specified skilled worker” visa was introduced. The government plan, presented March 18 to the ruling Liberal Democratic Party for endorsement, adds four new sectors to the list of industry fields where visa holders can work. The Kishida Cabinet is expected to approve the plan before the start of the new fiscal year on April 1, the sources said. The visa was introduced in 2019 under a program to accept foreign workers in selected industries where efforts to improve productivity and secure a domestic work force do not alleviate labor shortages. At the time, the government estimated that a maximum of 345,150 foreign workers would arrive in Japan over five years through 2024 with the new status of residence. The latest projection for five years through 2029 represents a 2.4-fold increase from the previous plan. Every five years, the government determines the number of workers it anticipates for each industry sector to prevent employment from being thrown into turmoil by an excessive intake. Click here to read… [4]

In major shift, BOJ decides it will end negative interest rates

The Bank of Japan announced March 19 it will end negative interest rates and review other ultra-loose monetary policies that have been in place for more than a decade to buoy the stagnant economy. At a news conference following a two-day policy board meeting, BOJ Governor Kazuo Ueda said the 11-year-long “monetary easing in different dimensions,” adopted by his predecessor, Haruhiko Kuroda, “has fulfilled its role.” The BOJ “assessed the virtuous cycle between wages and prices” and decided that the price stability target of 2 percent can be sustainably and stably achieved, it said in a statement. The negative interest rates, introduced in February 2016, are a pillar of its unconventional monetary easing policies. The central bank will raise short-term policy interest rates for the first time in 17 years. Specifically, it will increase the uncollateralized overnight call rate--a rate commercial banks charge on loans to each other and a target for the BOJ’s money market operations--to a range of between 0.0 and 0.1 percent. The BOJ will also raise its interest rate on part of the balance of current account deposits that commercial banks hold at the central bank from minus 0.1 percent to 0.1 percent. The unconventional policy was aimed at encouraging banks to increase lending to businesses. Click here to read… [5]

Pressure builds for charge on global shipping sector’s CO2 emissions

The European Union, Canada, Japan and climate-vulnerable Pacific Island states are among 47 countries rallying support for a charge on the international shipping sector’s greenhouse gas emissions, documents reviewed by Reuters showed. The documents, being discussed at an International Maritime Organization (IMO) meeting now entering a second week, outline four proposals with a combined 47 backers for imposing a fee on each ton of greenhouse gas the industry produces. Support for the idea has more than doubled from the 20 nations that publicly supported a carbon levy at a French climate finance summit last year. Backers argue the policy could raise more than $80 billion a year in funding which could be reinvested to develop low-carbon shipping fuels and support poorer countries to transition. Opponents, including China and Brazil, say it would penalize trade-reliant emerging economies. Those countries are competing to win over the dozens of others - including most African nations - that diplomats say have yet to take a firm stance on the issue. The IMO takes decisions by consensus but can also do so by majority support. The U.N. agency last year agreed to target a 20% emissions cut by 2030, and net zero emissions around 2050. While countries agreed in talks last week to continue negotiations on the emissions price, an official meeting summary noted they were “split on several issues” regarding the idea. Click here to read… [6]

China plans new rules on market access, data flows Premier Li tells global CEOs

China will carefully study issues of market access and cross-border data flows and will soon issue new regulations in these areas, Premier Li Qiang told an audience of global CEOs and Chinese policymakers on March 24. "We cordially welcome companies from all countries to invest in China and deepen their foothold in China," Li said. China is also pushing to develop emerging industries such as biological manufacturing and will step up development of artificial intelligence and the data economy, Li told the China Development Forum in Beijing. Beijing on March 19 eased some rules on foreign investment, after investment inflows shrank nearly 20% in the January-February period. China's cyberspace regulator on March 22 relaxed some security rules on data exports that had worried foreign firms in China. China's inflation rate and the central government's debt burden are relatively low, leaving room for further macro policy steps, Li told the two-day forum. He pointed to measures China rolled out last year to defuse property and debt risks, which he said have been effective. Li cited 1 trillion yuan ($140 billion) in previously announced ultra-long special treasury bonds, which he said will spur investment and stabilize economic growth. China's $18 trillion economy, the world's second-largest, faces headwinds including a property crisis, local government debt woes, industrial overcapacity, deflationary risks and cooling foreign investment. Click here to read… [7]

Global water crisis fuelling more conflicts, UN report warns

Increasing global water scarcity is fuelling more conflicts and contributing to instability, the United Nations warns in a new report, which says access to clean water is critical to promoting peace. The UN World Water Development Report 2024, released on March 22, said 2.2 billion people worldwide have no access to clean drinking water and 3.5 billion people lack access to safely managed sanitation. Girls and women are the first victims of a lack of water, said the report, published by the UN Educational, Scientific and Cultural Organization (UNESCO), especially in rural areas where they have the primary responsibility of collecting supplies. Spending several hours a day on fetching water, coupled with a lack of safe sanitation, is a contributing factor to girls dropping out of school. “Water shortages not only fan the flames of geopolitical tensions but also pose a threat to fundamental rights as a whole, for example, by considerably undermining the position of girls and women,” UNESCO chief Audrey Azoulay said. While the report did not examine specific current conflicts, Israel has severely restricted access to fresh, clean water during its war on Gaza. UN agencies have long warned that not only are children and women at grave risk of thirst and starvation, but the lack of clean water also has disrupted medical treatment and hygiene. Click here to read… [8]

Sudan one of the ‘worst humanitarian disasters in recent memory’, UN warns

Sudan is suffering one of the worst humanitarian crises in recent history after nearly a year of war, the United Nations has warned. Fighting between the army, headed by General Abdel Fattah al-Burhan, and the paramilitary Rapid Support Forces (RSF), led by Mohamed Hamdan Dagalo, since last April has killed tens of thousands of people, as the threat of famine looms amid international inaction. “By all measures – the sheer scale of humanitarian needs, the numbers of people displaced and facing hunger – Sudan is one of the worst humanitarian disasters in recent memory,” Edem Wosornu, director of operations at the UN Office for the Coordination for Humanitarian Affairs (OCHA), said on March 20. “A humanitarian travesty is playing out in Sudan under a veil of international inattention and inaction,” Wosornu told the UN Security Council on behalf of OCHA head Martin Griffiths. “Simply put, we are failing the people of Sudan,” she added, describing the population’s “desperation.” According to the UN, the conflict has led to more than eight million people being displaced. In early March, the Security Council called for an immediate ceasefire during Ramadan and urged better access to humanitarian aid. However, the ceasefire was not realised due to disagreements between the warring sides. Click here to read… [9]

Record number of people executed for drug offences in 2023

At least 467 people were executed for drug offences in 2023, a new record, according to Harm Reduction International (HRI), an NGO that has been tracking the use of the death penalty for drugs since 2007. “Despite not accounting for the dozens, if not hundreds, of executions believed to have taken place in China, Vietnam, and North Korea, the 467 executions that took place in 2023 represent a 44% increase from 2022,” HRI said in its report, which was released on March 19. Drug executions made up about 42 percent of all known death sentences carried out around the world last year, it added. HRI said it had confirmed drug-related executions in countries including Iran, Kuwait and Singapore. China treats death penalty data as a state secret and secrecy surrounds the punishment in countries including Vietnam and North Korea. “Information gaps on death sentences persist, meaning many (if not most) death sentences imposed in 2023 remain unknown,” the report said. “Most notably, no accurate figure can be provided for China, Iran, North Korea, Saudi Arabia and Thailand. These countries are all believed to regularly impose a significant number of death sentences for drug offences.” International law prohibits the use of the death penalty for crimes that are not intentional and of “the most serious” nature. The United Nations has stressed that drug offences do not meet that threshold. Click here to read… [10]

IMF Is Lending Near Record $150 Billion to Counter Debt and Wars

The International Monetary Fund is lending near a record amount to almost 100 countries, evidence of its growing role as a backstop against the financial and political dangers of the post-pandemic world. Primarily because of surging borrowing costs and conflicts, the IMF has had to put out more economic fires, including major blazes in Ukraine, Egypt and elsewhere in Africa as well as in Argentina and Pakistan. IMF credit outstanding, a key measure of money disbursed by the Washington-based fund, climbed to about $151 billion at the end of February, according to Bloomberg calculations of IMF data. (The IMF reports the figure as 113 billion units of its foreign exchange reserve asset, called Special Drawing Rights.) That’s likely to rise further after the fund finalizes up-sizing its support for Egypt to $8 billion, likely this month, pushing the total toward a recent record in August. Although the pandemic is drifting into the past “countries are still going through pressure and strain,” said Masood Ahmed, president of the Center for Global Development think tank and a former head of the IMF’s Middle East department. “The world has become more geopolitically fraught. There are more tensions and conflicts.” More than 50 of those borrowers have active loan or guarantee programs — about a quarter of the fund’s members. Click here to read… [11]

China pressured Ukraine to ditch ‘sponsors of war’ list – Reuters

Ukraine could do away with its list of ‘international sponsors of war’ this week following pressure to end the name-and-shame campaign by China, Reuters has claimed, citing anonymous sources familiar with the matter. Other countries may also have forced Ukraine’s hand on the issue, the media outlet said. The blacklist was launched in 2022 and is published on the website of Ukraine’s National Agency on Corruption Prevention. It features the names of foreign businesses believed to be “indirectly assist[ing] in or contribut[ing] to Russia’s war efforts.” In practice, any company that pays taxes in Russia can be blacklisted. While inclusion on the list has no legal repercussions, it is intended to damage corporate reputations and pressure companies to cut ties with Russia. Household names like PepsiCo, P&G, Yves Rocher, Unilever, Metro, Nestle, Auchan, and Xiaomi currently feature on the blacklist. A total of 14 entities in the database are from China – the highest number from a single country. In its article on March 21, Reuters quoted one unnamed source saying that “it’s China, but not only China.” They added that France had also exerted pressure on the leadership in Kiev over the inclusion of retailer Auchan and home improvement and gardening retailer Leroy Merlin on the blacklist. Click here to read… [12]

Huawei’s Return Is Case Study in U.S. Power—and Its Limits

Huawei, China’s telecom and mobile-technology champion is a poster child for the country’s high-tech ambitions—and a symbol of Washington’s determination to cut them down to size. Its surprising resilience, with important caveats, in the face of U.S. sanctions therefore says a lot about how the tech war is likely to unfold in the years ahead. America’s stranglehold on key upstream technologies gives it enormous power to damage China’s national champions, and dramatically raise the cost of China’s technological advancement. But as long as Beijing is willing to subsidize its domestic chip industry at essentially any cost, and buyers in large parts of the world—especially China itself, developing countries and Russia—remain avid buyers of Chinese wares, it will be hard to halt that progress entirely. Creating a truly bifurcated global technology ecosystem also entails other risks—namely that local Chinese competitors start to succeed further up the value chain. U.S. sanctions, which limited Huawei’s ability to source components for its phones and other gadgets, have indeed been devastating. Revenue at Huawei’s consumer division, mainly smartphones, more than halved between 2020 and 2022. That’s partly because it sold its budget Honor brand to save the business from sanctions. But its sales overseas and in the premium segment have also plummeted. Click here to read… [13]

Iran’s Arms Industry Goes Mainstream at Qatar Expo With Advanced ‘Gaza’ Drone

Iran says its latest drone can carry as many as 13 bombs with a turboprop engine that can power it over 1,000 miles at 35,000 feet. But its most distinctive feature is the name stenciled on the matte gray fuselage: “Gaza.” A model of the Iranian defense industry’s new flagship product was exhibited at an international arms fair in Doha this month—the drone’s first display outside Iran, sharing a stage with products from American, Chinese and Turkish rivals. Since the expiration of United Nations restrictions on Iran’s missile and drone exports in October, Tehran has increasingly sold its military wares on the international market, fueling concerns among the U.S. and its allies. The U.N. curbs had been part of the multilateral nuclear pact with Iran known as the Joint Comprehensive Plan of Action, which the U.S. withdrew from under former President Donald Trump in 2018. Iran has for years provided free weapons to its Mideast allies to support their activities. Drones and rockets either supplied or designed by Iran have featured prominently in recent attacks by Iran-backed forces, including the assault on Israel by Hamas that started the Gaza war on Oct. 7. Iranian weapons have also played a role in the indirect confrontation waged between Iran and the U.S., including in the killing of three U.S. service members in a January drone attack in Jordan by an Iran-backed Iraqi militia. Click here to read… [14]

EU Seeks to End Russian Grain Imports With Steep Tariffs

In a big shift, the European Union is planning to impose tariffs on Russian grain, part of an effort to curb Moscow’s export revenue and appease European farmers who are angry about imports of cheaper agricultural products. The plan—the bloc’s first push to restrict food products from Russia during the war—comes amid protests over Ukrainian agricultural imports by farmers who have at times set up blockades at border crossings. The tariffs will apply to EU imports of cereals, oilseeds and derived products from Russia and its ally Belarus. European Commission President Ursula von der Leyen said the move would help protect European markets and farmers from what she described as a growing risk and “reduce Russia’s capacity to exploit the EU for the benefit of its war machine.” The EU doesn’t import a large volume of grains from Russia, but officials are worried that the amount could rise. Russia’s overall grain exports to the world have jumped since its full-scale invasion of Ukraine in 2022, EU officials said. The EU tariffs are expected to be set at a level of 95 euros, equivalent to around $103, a metric ton for most cereal products and 50% for oilseeds and derived products, an official said. The tariffs are intended to be at a level where imports of those products to the bloc will no longer be viable. Click here to read… [15]

China’s Australian coal imports surge, replacing Russia as top supplier, but hi-tech products to be ‘slow burner’

Australia surpassed Russia as China’s largest supplier of coal at the start of the year as bilateral relations continued to improve between Beijing and Canberra. China’s imports increased by 3,188 per cent year on year to US$1.34 billion in January and February, according to Chinese customs data released on March 20, with shipments having stood at zero in January 2023. Overall, Australian shipments made up 24 per cent of China’s total coal imports in the first two months of the year, up from 0.9 per cent a year earlier. But Russia’s share fell from nearly half to 22 per cent during the same period, as shipments from its northern neighbour fell by 41 per cent to US$1.25 billion. Relations between China and Australia deteriorated in 2020 when Canberra called for an investigation into the origins of the coronavirus. But ties have since slowly improved, and Australian Prime Minister Anthony Albanese visited China in November. And during his first visit to Australia in seven years this week, Minister of Foreign Affairs Wang Yi said that the two countries should deepen cooperation on all fronts amid ongoing differences over strategic and security issues. Exports of Australian coal, cotton and barley, which were previously under official or unofficial bans, have gradually resumed since last year. Click here to read… [16]

Strategic

Russia casts doubt on Islamic State responsibility for concert attack

Russia on March 25 cast doubt on assertions by the United States that the Islamic State militant group was responsible for a gun attack on a concert hall outside Moscow which killed 137 people and injured 182 more. In the deadliest attack inside Russia for two decades, four men burst into the Crocus City Hall on March 22 night, spraying people with bullets just before Soviet-era rock group Picnic was to perform its hit “Afraid of Nothing”. Four men, at least one a Tajik, were remanded in custody for terrorism. They appeared separately, led into a cage at Moscow’s Basmanny district court by Federal Security Service officers. Islamic State has claimed responsibility for the attack, a claim which the United States has publicly said it believed, and the militant group has since released what it says is footage from the attack. US officials said they warned Russia of intelligence about an imminent attack earlier this month. But President Vladimir Putin has not publicly mentioned the Islamist militant group in connection with the attackers, who he said had been trying to escape to Ukraine. Putin said some people on “the Ukrainian side” had been prepared to spirit the gunmen across the border. Ukraine has denied any role in the attack and President Volodymyr Zelensky has accused Putin of seeking to divert blame for the concert hall attack by referring to Ukraine. Click here to read… [17]

China forges defense ties with India neighbors Maldives, Sri Lanka

China's military is pursuing closer cooperation with the Maldives, Sri Lanka and Nepal, all countries that border India, in a bid to strengthen its position amid an ongoing territorial dispute with New Delhi. A delegation from the Chinese military this month met with Maldivian President Mohamed Muizzu and held talks with defense representatives from all three countries, according to China's Ministry of National Defense. In addition to bilateral cooperation, the discussions covered shared regional security concerns. The Maldives, Nepal and Sri Lanka are geopolitically important to Beijing, which is wary of India's growing military strength as well as its recent moves toward closer security cooperation with the U.S. and Japan. Relations with the Maldives, an island nation in the Indian Ocean, have grown especially quickly. The country's Defense Ministry said March 4 that it had "signed an agreement on China's provision of military assistance gratis to the Republic of Maldives, fostering stronger bilateral ties." At the same time, the Maldivian government has demanded the withdrawal of Indian troops stationed in the country for disaster relief and other purposes, aiming for a full pullout by May 10. Muizzu, who won the presidency on a platform seen as anti-India, picked China as the destination for his first state visit after taking office in November. Click here to read… [18]

Europe looks to Japan for defence pact amid ‘worrying shift’ in regional dynamic

The European Union reportedly plans to seek a security deal with Japan as it looks to boost engagement in the Indo-Pacific to counter China. The agreement, first reported by Kyodo News last month, could potentially include cooperation on naval exercises in the Indo-Pacific, intelligence sharing and responses to cyberthreats. But Beijing is not expected to overreact to the plan since – although it has political implications – it is unlikely to have much impact on security in the region, according to observers. Song Zhongping, a former instructor with the People’s Liberation Army, said while Europe “keeps a close eye” on the region it is also “beyond reach”. “Their focus is on Europe, the Atlantic Ocean and Russia, but not China in the Indo-Pacific,” he said. “This agreement shows more that there is a political consensus between the two parties, but it will be difficult to implement it.” Brussels followed Washington to release its own Indo-Pacific strategy in 2021 aiming to strengthen defence ties with allies in the region, where tensions have been rising over the Taiwan Strait and the South China Sea. The EU and the US also held their first-ever joint naval exercise last year, in the Indo-Pacific, and Brussels has proposed sending warships to the Taiwan Strait. The bloc has meanwhile sought to boost defence ties with countries in the region including the Philippines, Vietnam and Australia. Click here to read… [19]

U.S. military command in Japan to be revamped, FT reports

U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida will unveil a plan next month to restructure the U.S. military command in Japan in the face of shared concerns about China, the Financial Times reported on March 24. The plan would strengthen operational planning and military exercises between the two countries, the FT reported, citing people familiar with the situation. It is due to be announced at the White House on April 10, when Biden is scheduled to host Kishida in a formal event that will include a lavish state dinner and a policy meeting, the newspaper said. Japan is a close ally and a key component of the U.S. strategy toward China, North Korea and other Asian security issues. The White House, the U.S. National Security Council and the State Department did not immediately respond to Reuters requests for comment. The Japanese government could not immediately be reached for comment. Washington has strongly endorsed a major military buildup by Japan as military and security activity between the U.S. and its major Asian allies has strengthened. More than a year ago, Japan pledged to double its defense spending to 2% of its gross domestic product and to procure missiles that can strike ships or land-based targets 1,000 km(600 miles) away. Click here to read… [20]

Quad Delivers Nearly $500M for Maritime Awareness in SE Asia

The US and members of the strategic security partnership known as the Quad have delivered more than $475 million in maritime awareness to help Southeast Asian nations counter Beijing’s growing presence in the South China Sea, according to a US official. Assistant Defense Secretary Ely Ratner said March 20 the US is prioritizing Southeast Asian partners “by diversifying the maritime platforms and systems they have to respond to incidents within their EEZs,” or Exclusive Economic Zones. Those includes providing new commercial off-the-shelf technologies “that can rapidly strengthen partners’ ability to promote safety and security within their waters,” he told the House Armed Service Committee during a hearing. The Quad is made up of like-minded Indo-Pacific partners that includes Japan, Australia and India, besides the US. Alongside Taiwan, a standoff between the Philippines — an American ally — and China over a series of contested reefs and islands in the South China Sea has increasingly become a flashpoint in the region. Philippines President Ferdinand Marcos Jr., in an interview this week, said that the threat from China has only grown even as Manila is “trying to keep things on an even keel.” Ratner said that China presents “the most comprehensive and serious challenge to US national security” not just in the Indo-Pacific region but, given its enhanced capabilities, also threatens the US’ position as a global power. Click here to read… [21]

Hong Kong passes Article 23 security law with sweeping powers

Lawmakers in Hong Kong passed comprehensive national security legislation by a unanimous vote on March 19, ushering the city into a new and uncertain legal era. The law's many provisions allow, for example, authorities to detain and punish anyone found to have "intent" to endanger national security, with a maximum penalty of life imprisonment -- the harshest possible sentence in the city's judicial system. Andrew Leung, the chairman of the Legislative Council, declared that 89 members voted in favor, including himself, with no objections or abstentions. The chairman typically refrains from voting, but he said he had "broken the tradition" to cast a yes vote. The new legislation, widely known as Article 23, comes in addition to an existing national security law imposed by Beijing in June 2020. After that, Hong Kong's electoral system was revamped to ensure that all lawmakers are "patriotic" according to the Chinese government's standards. In effect, pro-democracy candidates are barred from even running for office. The bill, officially titled the "Safeguarding National Security Ordinance," was put in an unusually fast lane. It took less than two weeks from its introduction on March 8 to passage. Click here to read… [22]

Vietnam president resigns after just one year, government says

The Vietnamese Communist Party has accepted the resignation of President Vo Van Thuong, the government said on March 20, in a sign of political turmoil that could hurt foreign investors' confidence in the country. The government said in a statement that Thuong had violated party rules, adding that those "shortcomings had negatively impacted public opinion, affecting the reputation of the Party, State and him personally." The Central Party Committee, a top decision-making body in Communist Party-ruled Vietnam, approved Thuong's resignation just about a year after his election. The president holds a largely ceremonial role but is one of the top four political positions in the Southeast Asian nation. Calls to the presidential office on March 20 went unanswered. The committee's meeting preceded an extraordinary session of Vietnam's rubber-stamp parliament scheduled on March 21, when deputies are expected to confirm the party's decisions. The government statement did not elaborate on Thuong's shortcomings, but major leadership changes in the one-party state have recently been all linked to the wide-ranging "blazing furnace" anti-bribery campaign. It is aimed at stamping out widespread corruption but is also suspected by critics to be a tool for political infighting. Foreign investors and diplomats have repeatedly blamed the campaign for slowing down decisions in a country that is already grappling with cumbersome bureaucracy. Click here to read… [23]

Pakistan's strikes in Afghanistan hint at new government's hard line

Pakistani airstrikes targeting suspected militant hideouts in Afghanistan could signal that the new government in Islamabad is prepared to take a tough stance on a longstanding threat. Afghanistan's Taliban administration on March 18 confirmed the airstrikes in the eastern provinces of Paktika and Khost, alleging that they targeted civilian homes and killed eight women and children. Pakistan's Foreign Ministry did not explicitly mention air attacks but said an intelligence-based operation in border regions inside Afghanistan had targeted a Pakistani militant group commanded by Hafiz Gul Bahadur. The ministry said his faction, alongside the Tehreek-e-Taliban Pakistan (TTP), is responsible for multiple cross-border attacks inside Pakistan. Experts see the action as an indication of Pakistan's counterterrorism strategy and a coordinated effort between the powerful military and the civilian government led by the Pakistan Muslim League-Nawaz (PML-N) party, which returned to power after last month's controversial elections. Pakistan has suffered a surge in terrorism in recent years and has grown frustrated with the inability or unwillingness of the Taliban government in Kabul -- which seized power as the U.S. withdrew in August 2021 -- to rein in militants near the border. Click here to read… [24]

N. Korea says Japan's Kishida proposed summit with leader Kim

North Korea said March 25 that Japanese Prime Minister Fumio Kishida has proposed a summit with North Korean leader Kim Jong Un, as the North urged Japan to show sincerity toward improving bilateral ties and realizing their countries' first summit in about 20 years. Japan’s government did not immediately respond to the North Korean announcement. In the statement carried by state media, Kim’s sister and senior official, Kim Yo Jong, said Kishida used an unspecified channel to convey his position that he wants to meet Kim Jong Un in person at an early date. Kim Yo Jong said there will be no breakthrough in North Korea-Japan relations as long as Kishida’s government raises the issue of Japanese citizens abducted to North Korea in past decades and opposes what she described as the North’s “exercise of sovereign rights,” apparently referring to the North’s weapons testing activities. “If Japan continues to try to interfere with our exercise of our sovereign rights, and continues to be preoccupied with the abduction issue, of which there is nothing more to resolve or investigate, then the prime minister’s (offer for talks) will inevitably be labeled as just an attempt to improve his popularity,” she said. “As long as Japan is hostile toward (North Korea) and infringes our sovereign rights, we will consider it as an enemy that is within our target, not as a friend,” Kim Yo Jong said. Click here to read… [25]

China’s military, state media slam U.S. after Reuters report on SpaceX spy satellites

Chinese military and state-run media on March 17 accused the United States of threatening global security, days after a Reuters report which found Elon Musk’s SpaceX was building hundreds of spy satellites for a U.S. intelligence agency. SpaceX’s Starshield unit is developing the satellite network under a classified $1.8 billion contract with the National Reconnaissance Office (NRO), Reuters reported on Friday, citing five sources familiar with the program. A social media account run by the People’s Liberation Army (PLA) said the SpaceX program exposed the United States’ "shamelessness and double standards" as Washington accuses Chinese tech companies of threatening U.S. security. "We urge U.S. companies to not help a villain do evil," Junzhengping, an account run by the PLA, posted on social media platform Weibo on March 17. The account has 1.1 million followers. "All countries worldwide should be vigilant and protect against new and even bigger security threats created by the U.S. government," the post said. Wang Yanan, chief editor of Aerospace Knowledge, a magazine overseen by the ruling Communist Party, was quoted in an interview as saying the SpaceX satellite project posed "a challenge to global security and stability". "The United States’ high-profile intelligence reconnaissance of countries or regions it is concerned about will inevitably cause some hot issues to become more sensitive or even escalate," Wang told The Global Times, a Chinese state-controlled newspaper, in an interview published on March 17. Click here to read… [26]

Ukraine’s Drone Strikes on Russian Oil Refineries Mark New Phase in War

Ukraine’s fight against Russia’s invasion has entered a new phase, pitting homegrown drone technology against a 2,000 kilometer (1,200 mile) swathe of largely Soviet-era oil facilities. At least nine major refineries have been successfully attacked this year, currently taking offline 11% of the country’s total capacity by some estimates. As the conflict at the front lines has shifted in Moscow’s favor, the drone campaign is becoming a key plank of Ukraine’s defense — both in its symbolism and its strategic aims. It gives Kyiv the ability to reach deep into Russian territory and strike an industry that’s crucial to the Kremlin’s war effort, providing both supplies of fuel to its armed forces and a flow of petrodollars into its coffers. “Russia is a gas station with an army, and we intend on destroying that gas station,” Francisco Serra-Martins, co-founder and chief executive officer of drone manufacturer Terminal Autonomy, said in an interview. “We are going to focus on where it hits the hardest, and that’s financial resources.” Even as the drone campaign becomes a success story for Ukraine’s military — badly needed after a series of Russian gains on the battlefield — it is a potential wild card for world markets and Kyiv’s Western allies. International oil prices have risen steadily in recent days amid growing fears that the attacks, which have largely inflicted attritional damage so far, could one day take out a major export facility. Click here to read… [27]

House Passes $1.2 Trillion Bill, Hours Before Shutdown Deadline

The House passed a $1.2 trillion government funding bill hours before a midnight March 22 partial government shutdown deadline, rebuffing conservatives’ demands for deep cuts to domestic spending. In response, hardline Republican Marjorie Taylor Greene of Georgia took the first steps toward ousting House Speaker Mike Johnson. It wasn’t immediately clear whether other Republicans would join her or even whether she would follow through on the threat by forcing a vote on his removal. The 286 to 134 House vote March 22 sends the bill to the Senate, where leaders in both parties hope to hold a vote in time to avoid a funding lapse. If the Senate debate drags on past midnight, the White House budget office has some limited leeway to delay a shutdown order on March 23. The funding package, negotiated by the White House and congressional leaders from both parties, increases defense appropriations by 3% while keeping overall domestic spending flat. Military troops get a 5.2% pay raise, and there are increases in child care, cancer research and primary school funding prioritized by Democrats. House Democrats overwhelmingly supported the measure while conservatives largely voted against it. More Republicans voted against the bill than for it, a higher level of GOP mutiny than on earlier spending bills. Click here to read… [28]

Europeans at Odds Over Sanctioning Iran for Weapons Transfers in Middle East

The European Union is pushing back against a French-German drive to target Iran with sanctions over its provision of missiles and other military hardware to its regional allies, with senior EU officials saying new sanctions could undercut diplomacy with Tehran. France, Germany, the Netherlands and five other EU countries wrote last month to EU foreign-policy chief Josep Borrell, saying the bloc should adopt a sanctions regime that allows them to target “Iranian actors which arm, fund, advise and instruct” pro-Iran regional militias, as well as the groups themselves, according to a letter seen by The Wall Street Journal. A Biden administration official said they have told the EU they support increasing pressure on Tehran through sanctions on Iran’s transfers of missiles and military equipment to regional militias as well as to Russia. The dispute, which was raised again at a meeting of EU foreign ministers on March 18, comes days after Europe and the U.S. pledged to swiftly and jointly impose meaningful new sanctions on Tehran if it delivers ballistic missiles to Russia. Western officials said they have no proof that Tehran has yet delivered the missiles but expect it to do so. EU leaders will pledge at a summit this week to expand targeted sanctions against Iranian individuals and entities if the missile deliveries to Russia proceed, according to a draft of a summit statement. Click here to read… [29]

In biggest settler land grab since Oslo, Israel seizes 800 hectares in occupied West Bank

Israel publicly humiliated America’s top diplomat on March 22 by launching a massive settler land grab in the occupied West Bank while US Secretary of State Antony Blinken was in talks with Israeli Prime Minister Benjamin Netanyahu in Tel Aviv. Israel’s seizure of 800 hectares of land in the northern Jordan Valley on March 22 was the single largest since the 1993 Oslo Accords. Israeli settlement watchdog Peace Now said the size of the seized area is the largest since 1993’s Oslo Accords, and that “2024 marks a peak in the extent of declarations of state land.” Israel’s Finance Minister Bezalel Smotrich declared as “state lands” the area in the northern Jordan Valley, as US Secretary of State Antony Blinken arrived in Israel for Gaza war talks. Israel captured the West Bank, east Jerusalem and the Gaza Strip in the 1967 Arab-Israeli war. “While there are those in Israel and the world who seek to undermine our right over the Judea and Samaria area and the country in general, we are promoting settlement through hard work and in a strategic manner all over the country,” Smotrich said, using Israel’s term for the West Bank. Settlements in the Palestinian territories are illegal under international law. Click here to read… [30]

China starts international manhunt with belt and road corruption in its sights

Beijing has pledged to fight graft related to its Belt and Road Initiative as China kicks off the annual international manhunt it says is aimed at fugitive corrupt officials and cross-border corruption. Beijing’s top anti-graft watchdog urged cadres to be “daring and skilled in fighting the domestic and international battlefields, and deeply advance the pursuit of fugitives and asset recovery and cross-border corruption governance”, according to a report in the official People’s Daily on March 20. The Central Commission for Discipline Inspection (CCDI) made the call in a meeting on March 19 with multiple agencies involved in the cross-border corruption hunt, the report said. “[We] must strengthen the integrity of building the Belt and Road Initiative and reinforce the high-pressure stance against corruption to provide strong support and a firm guarantee for winning the tough and protracted battle against corruption,” the CCDI said. The belt and road global trillion-dollar trade and infrastructure programme was launched in 2013 with the promise of being a New Silk Road, and is President Xi Jinping’s signature project. More than 150 countries from Asia, Europe, Africa and Latin America have signed up for the massive project, offering Beijing a chance to promote economic integration. Click here to read… [31]

Health

Japan to let more foreigners work as in-home caregivers

Japan will allow foreigners with "specified skilled worker" status to become in-home caregivers, expanding eligibility to alleviate an acute labor shortage in the field. Currently, those workers can provide care only in group home settings. Only caregivers from countries that have economic partnership agreements with Japan, or those with care provider residency status, can provide in-home care. An expert panel under the Ministry of Health, Labor and Welfare agreed in principle March 21 on the change, which the government aims to implement in fiscal 2025. To qualify, specified skilled workers will be expected to acquire the same professional qualifications as those now providing in-home care. They will also need to pass the Japanese-Language Proficiency Test at level N4, which indicates an ability to understand basic Japanese. Employers will have to provide conversation and cultural training to foreign workers. In addition to specified skilled workers, the ministry plans to allow workers under the foreign trainee program, as well as caregivers in training from EPA partners, to provide in-home care. There are currently around 46,000 individuals working in nursing care in Japan across these three categories. Click here to read… [32]

First case of human-human spread of deadly SFTS confirmed

Japan confirmed its first case of human-to-human transmission of severe fever with thrombocytopenia syndrome (SFTS), a potentially fatal tick-borne viral hemorrhagic fever. The National Institute of Infectious Diseases said on March 19 that a doctor in his 20s became infected with SFTS after treating a patient in April 2023. He removed a catheter and performed other medical procedures after the SFTS patient, who was in his 90s, died. The doctor developed a 38-degree fever, a headache and other symptoms, 11 days after his first contact with the patient. A polymerase chain reaction test confirmed the diagnosis of SFTS, which spreads through ixodid ticks. The institute concluded the doctor contracted the virus from his patient because the viral genes from the two individuals were considered identical. The doctor’s condition has since improved. SFTS infections have not been confirmed for other health workers, the patient’s family members and funeral workers. The institute said human-to-human SFTS transmissions have been reported in China and South Korea. Click here to read… [33]