Global Developments and Analysis: Weekly Monitor (22-28 April 2024)

Economic

China’s exporters shun the yuan, embrace alternatives as depreciation fears build

The recent volatility of the yuan, depressed profits and unexpected shifts in external demand are combining to make some Chinese exporters less sanguine about their business prospects – and more likely to park their assets in anything but the national currency. Many feel further depreciation of the yuan against the US dollar is all but certain, as the US Federal Reserve defied expectations and indicated a predicted reduction of interest rates would not be forthcoming due to lingering inflation pressures. “At the beginning of this year, it became clear that my circle of friends, all of whom are exporters, were short of US dollars,” said a Guangdong-based manager in the textile equipment industry. The manager, who elected to remain anonymous, has a nearly US$1 million investment in a US factory. “Perhaps, on the one hand, it is because the economy and exports are not that good, and everyone is earning fewer dollars. On the other hand, companies like us that are developing markets overseas have also encountered difficulties.” China’s exports declined by 7.5 per cent in March compared to the year before, hitting US$279.7 billion and falling short of expectations. This was in sharp contrast to the 7.1 per cent growth in combined figures for January and February. Click here to read… [2]

Europe Hits China With Medical Devices Probe Before Xi Visit

The European Union launched an investigation into China’s procurement of medical devices, the latest in a spate of actions that are raising tension ahead of President Xi Jinping’s first visit to the bloc in five years. The probe was formally announced April 22 morning Beijing time and will seek to address concerns that China unfairly favors domestic suppliers. The EU already has an inquiry into Chinese government backing for electric-car manufacturers that could lead to new tariffs, and it’s scrutinizing other industries like wind energy, solar and railways. EU relations with Beijing have been deteriorating over the past year and more, as Europe becomes more assertive in responding to China’s trade policies. European leaders have pushed back against China’s surge in manufacturing capacity, its massive trade surplus and its support for Russia’s invasion of Ukraine. The probe is the first use of the bloc’s so-called International Procurement Instrument, a 2022 law that’s meant to promote reciprocity in access to public procurement markets. The investigation was first reported by Bloomberg last week and will initially focus on information gathering from companies and member states before authorities start talks with Beijing on fair and open markets. The probe will need to be concluded within nine months. Click here to read… [3]

Germany Considers Watering Down Plan to Scrutinize Chinese Investments

Germany is considering scaling back plans to step up government scrutiny of Chinese investments, the latest example of how a country deeply intertwined with—and increasingly conflicted about—China is pulling its punches as others get tougher on Beijing. People familiar with the plan said a decision to defang a planned foreign investment-screening law had become likelier because of fears that it could hurt Berlin’s parallel efforts to re-energize Germany’s stagnating economy. The backtracking could raise concerns among Western allies that Beijing is whittling down Western support for increasingly aggressive U.S. and European Union efforts to rein in China’s global influence. After hosting German Chancellor Olaf Scholz in Beijing this month, Chinese leader Xi Jinping is preparing to visit France, Hungary and Serbia in May. The diplomatic rapprochement comes despite mounting alarm in Germany about the extent of Chinese espionage. This week alone, German prosecutors detained four alleged spies for China as a result of two separate intelligence investigations. “We are seeing a rise in clandestine interference in politics, companies and scientific institutions,” Sinan Selen, deputy head of Germany’s domestic intelligence agency, said at a conference on China’s growing security threat in Berlin this week. “Companies are no longer just facing industrial espionage from unfair competitors, but the full power of the [Chinese] state.” Click here to read… [4]

China's rare-earth miners suffer profit falls as new supply chains rise

China's rare-earth miners and refiners are suffering from falling revenues and profits despite the government's efforts to protect the strategic industry, as competitors scurry to build their own supply chains and the domestic economy remains shaky. China Rare Earth Resources and Technology, a core listed arm of state conglomerate China Rare Earth Group, reported a 5.4% year-on-year decline in annual revenue for 2023, to 3.98 billion yuan ($550 million). Its net profit plunged by 45.7% to 417.67 million yuan. In a disclosure to the Shenzhen exchange dated April 27, the state-owned miner said the rare-earth industry is going through a "fundamental stage" characterized by accelerated consolidation and structural adjustments on a global scale. It said this had caused prices to fall, eroding its earnings. The story is much the same across the Chinese industry. Although the country remains by far the world's top producer of rare-earth minerals -- crucial for batteries, electric cars and other high-tech products -- others are enhancing their own production capabilities. The latest data from the U.S. Geological Survey (USGS), which is widely quoted by Chinese authorities and companies, shows global reserves of the 17 rare-earth elements at 110 million tonnes, with China comfortably leading at 44 million tonnes -- 40% of the total. Trailing China were Myanmar, Russia, India and Australia. Click here to read… [5]

Xi’s Armada Is Winning the Battle for Energy in the South China Sea

This was supposed to be the year that Vietnam reaped the benefits from one of its largest natural gas discoveries. An estimated 150 billion cubic meters of the fuel, enough to power a city the size of Hanoi for decades, was discovered 50 miles (80 kilometers) from Vietnam’s central coast in 2011. If all had gone to plan, the “Blue Whale” project led by Exxon Mobil Corp. would have gone online late last year. On the other side of the South China Sea, the Philippines has long eyed the energy riches off its western coast as a way to reduce its growing reliance on imported gas and oil, with successive governments drafting projects to tap into those resources and bolster the nation’s energy security. None of it has happened — and an armada of Chinese fishing boats, coast guard cutters and a giant vessel dubbed the “Monster” are making sure it won’t anytime soon. Beijing’s vast claims across the South China Sea — based on a vague 1947 map showing what’s become known as a “ten-dash line” through the waterway — were rejected by a United Nations-backed tribunal in 2016. The clearest evidence of that is this: both the Philippines and Vietnam imported their first shipments of liquified natural gas last year, and they are rapidly increasing those purchases. The Philippines is slated to spend nearly $1.4 billion on LNG purchases through September 2025, while Vietnam is set to pay $370 million during the same period, according to calculations based on BloombergNEF forecasts. Click here to read… [6]

iPhone sales nosedive in China

Apple’s smartphone sales in China dropped 19% in the first quarter of 2024 due to increased competition from local brands, a new report by Counterpoint Research has shown. The US tech giant fell to third place in the hotly contested market amid pressure from fast-rising rival Huawei, the researcher said on April 23. Shenzhen-based Huawei saw sales of its smartphones soar a whopping 69.7% in the first quarter. It is now the fourth-largest smartphone maker in China, according to the report. Huawei’s strong performance comes in the wake of US sanctions, which nearly wiped out the Chinese company’s global smartphone business. Overall, China’s smartphone market expanded about 1.5% year-on-year in the first quarter of 2024, marking the second quarter of positive growth for the industry. Vivo became the top smartphone vendor in China during the quarter with a 17.4% share, driven by strong sales of the Y35 Plus and Y36 models in the low-end segment and the S18 in the mid-end segment. Honor ranked second with a 16.1% share, followed by Apple with a 15.7% share. “Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment,” senior Counterpoint analyst Ivan Lam stated. “Besides, the replacement demand for Apple has been slightly subdued compared to previous years.” Click here to read… [7]

Chinese cargo ships poised to gain from Red Sea tensions

After Iran's unprecedented direct strike on Israel, shipping companies have reason to fear Houthi rebels in Yemen may escalate attacks on vessels passing through the Red Sea. But the risk-reward profile looks different from Beijing. When Iran attacked Israel on April 13-14, the Iranian-backed Houthis also attempted to launch missiles and drones at Israel from more than 2,000 kilometers to the south. The weapons in Houthi territory were destroyed before they got off the ground, according to the U.S. Central Command, while the Iranian strike did little damage. Israel hit back April 26 with limited strikes on Iran. "Since Iran is providing arms support, the Houthis will likely step-up attacks in the Red Sea," said Susumu Nakamura, senior researcher for the Keio Research Institute at SFC. All this adds to the uncertainty over when safe passage for commercial ships will be restored in the Red Sea. Denmark's A.P. Moller-Maersk and other global shipping giants have stop sailing through the Red Sea, instead taking detours around the Cape of Good Hope. Meanwhile, Chinese shipping companies have been conspicuous for venturing into troubled Middle Eastern waters. Sea Legend Shipping started a route to the Mediterranean Sea that goes through the Red Sea. The Chinese navy is escorting the ships, according to the company's website. From mid-October through mid-March, the average number of Chinese vessels per week that passed through the Suez Canal and docked at a Chinese port rose 73% compared with the previous six months. Click here to read… [8]

Japan's defense spending climbs to 1.6% of GDP

Japan's defense-related budget for fiscal 2024 has expanded to 1.6% of gross domestic product, steadily approaching the 2% threshold in line with Western economies. Spending will total 8.9 trillion yen ($56.7 billion) in the 12 months through March 2025, Defense Minister Minoru Kihara told reporters April 26. The percentage of GDP will rise 0.2 point on the year. The Ministry of Defense's budget makes up 7.7 trillion yen of the spending. The other 1.2 trillion yen comes from such areas as the Japan Coast Guard budget and United Nations peacekeeping operations. Under a trio of national security documents published in late 2022, the Japanese government aims for defense-related spending of 2% of GDP by fiscal 2027. The government has set a defense spending goal of 43 trillion yen over five years through fiscal 2027. The 1.6% figure is based on GDP for fiscal 2022. If fiscal 2024 defense spending were to be compared against the Cabinet Office's projection of GDP for the same year, the ratio would hover around 1.4%. The defense spending increases will generally be based on fiscal 2022 GDP, the government had explained. This aligns with Defense Ministry practices, and the underlying goal was to reach 2% at an early date. But keeping the fiscal 2022 baseline -- as opposed to updating it -- would likely inflate defense spending's share of GDP. This could muddle international comparisons. Click here to read… [9]

War, fear of war spur global military spending to new record: SIPRI report

The world spent $2.4 trillion on military forces last year, the highest amount ever recorded by the Stockholm International Peace Research Institute (SIPRI). SIPRI has been monitoring military expenditures since 1949 and found in its annual report released on April 22 that in 2023 they rose to 2.3 percent of the global gross domestic product (GDP) from 2.2 percent the year before. It meant that every man, woman and child on the planet was taxed an average of $306 for military spending last year – the highest rate since the Cold War. The increased spending exactly matched the global rate of inflation of 6.8 percent, so it doesn’t necessarily translate into greater military efficacy everywhere. But as SIPRI said, spending was not evenly spread out because “world military expenditure is highly concentrated among a very small group of states”. The United States remained the biggest spender at $916bn, representing 37 percent of the world’s military outlays. China came second with an estimated $296bn. Russia was third at $109bn although SIPRI considers this an underestimation “due to the increasing opaqueness of Russian financial authorities since the full-scale invasion of Ukraine in 2022”. India came fourth at $83.6bn. The rate of increase in military spending was also uneven with European budgets ballooning due to the war in Ukraine. Click here to read… [10]

Cost of doing business with Iran? US warns Pakistan of sanctions risk

The United States has warned Pakistan of the risk of sanctions after it promised greater security and economic cooperation with Iran during a visit by President Ebrahim Raisi. The first Iranian president to visit the South Asian country in eight years, Raisi concluded his three-day trip on April 24 as the neighbouring countries said they would increase bilateral trade to $10bn a year over the next five years, from the current $2bn. Pakistan’s foreign office said the two sides additionally agreed to cooperate in the energy sector including trade in electricity, power transmission lines and the Iran-Pakistan gas pipeline project. The gas pipeline project has languished for more than a decade because of political turmoil and international sanctions. The US Department of State on April 23 cautioned the Pakistani government of engaging in business deals with Iran. “We advise anyone considering business deals with Iran to be aware of the potential risk of sanctions. But ultimately, the government of Pakistan can speak to their own foreign policy pursuits,” spokesperson Vedant Patel said during a news briefing. Foreign policy expert Muhammad Faisal said the United States threats of sanctions are merely meant to dissuade Pakistan and “increase the cost of doing business with Iran”. “Any expansion of formal trade and banking activity between the two nations will be slow, as Pakistani banks are reluctant to do direct business with Iranian banks,” he told Al Jazeera. Click here to read… [11]

Scientists say Oman, UAE deluge ‘most likely’ linked to climate change

Global warming caused by fossil fuel emissions “most likely” exacerbated the intense rains that lashed the UAE and Oman last week, causing deaths and widespread flooding, an expert group of scientists has found. The World Weather Attribution (WWA), an international group of scientists that investigates extreme weather events, said climate change caused by fossil fuel emissions is the probable reason but cannot be pinpointed “with certainty”. The study compiled by 21 international researchers found extreme rainfall in El Nino years has become 10-40 percent heavier in the region affected. “Warming, caused by burning fossil fuels, is the most likely explanation for the increasing rainfall,” WWA said in the study published on April 25. “There are no other known explanations” for the sharp rise in precipitation, the group added. Twenty-one people died in Oman and four in the United Arab Emirates, which was battered by the heaviest rainfall since records began for the desert Gulf state 75 years ago. The oil-producing states have been experiencing extreme heat brought on by global warming. But last week’s floods revealed the additional risk of exceptional weather events as the planet heats up. “The UAE and Oman floods have shown that even dry regions can be strongly affected by precipitation events, a threat that is increasing with increasing global warming due to fossil fuel burning,” said Sonia Seneviratne, a WWA member and professor at Zurich’s ETH university. Click here to read… [12]

Electric cars and digital connectivity dominate at Beijing auto show

Global automakers and EV startups unveiled new models and concept cars at China’s largest auto show on April 25, with a focus on the nation’s transformation into a major market and production base for digitally connected, new-energy vehicles. Toyota and Nissan both announced tie-ups with major Chinese technology companies as they strive to meet customer demand for AI-enabled online connectivity in cars, from social media apps to autonomous driving features. Electric vehicles accounted for about a quarter of all auto sales in China last year. Hybrids, which have trailed EVs, are expected to be a growing segment going forward. China’s largest EV maker, BYD, showed off two “dual-mode” plug-in cars that can run either solely on electricity or as hybrids. The other is a hybrid off-road SUV from its luxury Yangwang brand in the 1 million yuan-plus ($140,000) range. “China’s EVs, represented by (BYD’s) Qin and Han series, have successfully realized the large-scale replacement of traditional fuel cars, and this trend is irreversible,” said Lu Tian, the head of sales for BYD’s Dynasty models. The cars are named after former imperial dynasties. An executive from Chery, a more traditional Chinese maker, offered a more moderate perspective. Li Xueyong, a deputy general manager, said they envision a future of 40% fuel vehicles, 30% hybrids and 30% electric. Click here to read… [13]

Switzerland Has Frozen $14 Billion in Total of Russia Assets

Switzerland has blocked 13 billion francs ($14.3 billion) in Russian assets held in the country, including more than 7 billion francs in reserves and assets of Russia’s central bank. In 2023, Swiss authorities froze a further 580 million francs in financial assets and two more properties, following its own investigations and detailed clarifications by banks, the State Secretariat of Economic Affairs, or SECO, said April 23. In total, it’s frozen 17 properties as well as luxury cars, works of art and furniture. Switzerland’s decision to adopt European Union sanctions against Russia after its invasion of Ukraine was a dramatic break with its traditional neutrality. While it’s faced pressure internationally to do even more, even going this far has proved controversial at home. Activists have gathered enough signatures to hold a popular vote on Switzerland’s neutrality. They want to enshrine the position into the constitution and block participation in non-military coercive measures, which would include the sanctions. The total value of private assets frozen as of the end of 2023 was 5.8 billion francs, SECO said. That’s a decline from 2022 and reflects valuation losses. The central bank assets frozen amount to 7.24 billion francs. SECO said in a statement that the “obligation to report these reserves and assets on a quarterly basis will remain in place.” Click here to read… [14]

What Is TikTok Worth? Some Say $20 Billion, Others Say $100 Billion

Now that President Biden has signed legislation forcing the sale of TikTok’s U.S. operations, any potential deal raises a big question: How much is the popular video-sharing app worth? Those asking have some huge—and widely varying—numbers to consider. One suitor has suggested $20 billion as a starting price for the U.S. operations. Executives at TikTok parent ByteDance have previously considered TikTok’s global operations to be worth about half of the Chinese company’s overall value, which would put it above $100 billion, according to people familiar with the matter. Settling on the exact value will be difficult because the tech industry has never seen a sale like this before, and there are several unknowns. A big factor is what would come with the sale. Would it be the whole international business and its more than one billion users, or just the U.S. operations with 170 million users? Would TikTok’s secret sauce—the addictive video-personalization algorithm that China has signaled it won’t allow to be sold—be included? Another question hangs over how attractive TikTok’s U.S. business is, as its once dizzying growth slows and Instagram rises as a rival. It will likely take months or more to settle on a sale price—if it ever comes to that. President Biden on April 23 signed the legislation after Congress approved the bill in recent days. Click here to read… [15]

Musk Wins China’s Backing for Tesla’s Driver-Assistance Service

Elon Musk wrapped up a trip to China in less than 24 hours and came away with a crucial victory as he pushes to reignite Tesla’s sagging growth. After his flurry of meetings with top officials in Beijing, China’s government signaled its blessing for Tesla to roll out its advanced driver-assistance service in the carmaker’s second-biggest market. The Tesla chief executive is seeking to expand use of the controversial software feature globally as the company confronts the prospect of lower sales growth this year. Chinese officials told Tesla that Beijing has tentatively approved the company’s plan to launch its “Full Self-Driving,” or FSD, software feature in the country, people familiar with the matter said April 22. The U.S. electric-vehicle maker will deploy its autonomous driving services based on mapping and navigation functions provided by Chinese technology giant Baidu, the people said. Tesla’s stock was up 10% in morning trading April 22. The partnership clears an important regulatory hurdle for Tesla to offer its driver-assistance system there. Working with a Chinese company helps ease regulators’ concerns over any data-security risks, the people said. Bloomberg earlier reported the deal with Baidu, which in addition to its core search-engine business has expanded into autonomous driving and artificial intelligence. Baidu declined to comment. Click here to read… [16]

Strategic

Blinken's Shanghai visit sets friendly tone amid U.S.-China strains

U.S. Secretary of State Antony Blinken began his three-day visit to China on a light note by taking in a basketball game, strolling through Shanghai's Yu Garden and along the historic Bund, and holding a friendly meeting with the local Communist Party secretary. Citing President Xi Jinping, Shanghai Secretary Chen Jining told Blinken on April 25 that "the future" and "the hope" for bilateral relations lie in "subnational" relationships, according to a State Department readout. Calling his guest "Tony," he acknowledged that the China-U.S. "relationship has not always been smooth, there [have] always been twists and turns, but overall, it has progressed with historical development and progressed forward." Blinken said, "We have an obligation for our people and, indeed, an obligation for the world, to manage the relationship between our two countries responsibly." State Department spokesman Matthew Miller told media that Blinken also stressed to Chen that the U.S. wants "healthy economic competition" and "a level playing field" for American workers and companies, echoing the message delivered by Treasury Secretary Janet Yellen on her recent visit to China. Chen, according to China's readout of the meeting, assured Blinken that "Shanghai's rapid industrial transformation, [along with] consumption upgrading and an increase in technological innovation, will bring new development opportunities to Chinese and foreign companies, including those from the U.S." Click here to read… [17]

China passes tariff law as tensions with trading partners simmer

China on April 26 passed a law leaving its biggest trade partners in no doubt that it can hit back should they put tariffs on the exports of the world's No.2 economy as Washington and Brussels take aim at Beijing over excess industrial capacity. The Tariff Law, which was approved by China's top legislature after three rounds of deliberations going back to 2022, is the latest addition to Beijing's arsenal of trade defense instruments as it maintains an uneasy truce with the U.S. following a trade war that kicked off during the Trump administration. The law, which will take effect from Dec. 1, outlines a range of legal provisions related to tariffs on Chinese imports and exports, from what constitutes tax incentives to China's right to hit back at countries that renege on trade agreements. Beijing has stepped up its trade defense capabilities since President Xi Jinping came to power in 2012, ushering in laws empowering officials with ways of retaliating against countries that take issue with the way China trades by interfering with the movement of goods, data and personnel between those markets. Rising tensions between China and the United States and European Union have only validated Beijing's belief it needs to consolidate and improve the measures it has at its disposal, analysts say. Click here to read… [18]

North Korea leans on Russian ties to expand relations with Iran

North Korea's minister for external economic relations is making a rare visit to Iran, part of Pyongyang's efforts to cultivate diplomatic relations by expanding on its ties with Moscow. Yun Jong Ho left North Korea with a delegation on April 23, the North's official Korean Central News Agency said April 24. North Korea and Iran both have close ties to Russia and are hostile toward the U.S. Since the pandemic, there have been no reports of a high-level North Korean official visiting Iran. The last significant visit was by the vice chairman of the Supreme People's Assembly in August 2019. North Korea and Iran are believed to have been cooperating in missile technology since the 1980s, according to an analyst cited in South Korea's Yonhap News Agency, who added that Iran is reportedly ahead in solid-fuel technology and there is concern the sides are cooperating in such areas as hypersonic missiles. Since the end of the pandemic, North Korea has been strengthening diplomatic relations with friendly countries, most notably with Russia. North Korean leader Kim Jong Un met with Russian President Vladimir Putin in Russia last year, with the two agreeing to work on military cooperation. Foreign Minister Choe Son Hui also visited the country this year. A delegation led by a high-ranking agricultural official traveled to Russia in February, followed by Yun in March. Click here to read… [19]

Myanmar rebel group withdraws from Thai border after army returns

An armed ethnic group in Myanmar has withdrawn its troops from a town along the Thai border following a counteroffensive by the ruling junta from whom rebel fighters wrested the key trading post this month, a spokesperson for the group said on April 24. Myanmar is locked in a civil war between the military on one side and, on the other, a loose alliance of established ethnic minority armies and a resistance movement born out of the ruling junta's bloody crackdown on dissent after its 2021 coup. The Karen National Union (KNU) made a "temporary retreat" from Myawaddy, its spokesperson, Saw Taw Nee, said after the return of junta soldiers to the vital strategic area that is a conduit for annual foreign trade of more than $1 billion. Armed soldiers from a militia with a history of shifting allegiances, the Karen National Army (KNA), were clearing barricades and patrolling the town of 200,000 people, two residents said, speaking on condition of anonymity. Photographs posted on some pro-junta social media groups showed a handful of its soldiers raising the Myanmar national flag at a military base the KNU had controlled just days before, and where the rebel group had raised its own banner. "KNLA troops will ... destroy the junta troops and their back-up troops who marched to Myawaddy," added Saw Taw Nee, referring to the group's armed wing, the Karen National Liberation Army, one of Myanmar's oldest ethnic fighting forces. Click here to read… [20]

Putin announces plans to visit China in May

Russian President Vladimir Putin said April 25 he plans to visit China in May, in what could become the first foreign trip for the Russian leader after he extended his rule by six more years in an election that offered voters little real choice. Putin announced the plans for the visit at a congress of the Russian Union of Industrialists and Entrepreneurs in Moscow. He didn’t say when exactly it would take place and didn’t offer any other details. Putin’s inauguration is scheduled for May 7, Russian lawmakers said earlier this week. Last month, the 71-year-old Russian leader secured his fifth term in office in a vote with no real opposition, extending his 24-year rule. Russia’s growing economic and diplomatic isolation because of its war against Ukraine has made it increasingly reliant on China, its former rival for leadership of the Communist bloc during the Cold War. According to a recent U.S. assessment, China has surged sales to Russia of machine tools, microelectronics and other technology that Moscow in turn is using to produce missiles, tanks, aircraft and other weaponry for use in the conflict. China has repeatedly said it isn’t providing Russia with arms or military assistance, although it has maintained robust economic connections with Moscow. Click here to read… [21]

Russia vetoes a U.N. resolution calling for the prevention of a dangerous nuclear arms race in space

Russia on April 24 vetoed a U.N. resolution sponsored by the United States and Japan calling on all nations to prevent a dangerous nuclear arms race in outer space, calling it “a dirty spectacle” that cherry picks weapons of mass destruction from all other weapons that should also be banned. The vote in the 15-member Security Council was 13 in favor, Russia opposed and China abstaining. The resolution would have called on all countries not to develop or deploy nuclear arms or other weapons of mass destruction in space, as banned under a 1967 international treaty that included the U.S. and Russia, and to agree to the need to verify compliance. U.S. Ambassador Linda Thomas-Greenfield said after the vote that Russian President Vladimir Putin has said Moscow has no intention of deploying nuclear weapons in space. “Today’s veto begs the question: Why? Why, if you are following the rules, would you not support a resolution that reaffirms them? What could you possibly be hiding,” she asked. “It’s baffling. And it’s a shame.” Putin was responding to White House confirmation in February that Russia has obtained a “troubling” anti-satellite weapon capability, although such a weapon is not operational yet. Russia’s U.N. Ambassador Vassily Nebenzia dismissed the resolution as “absolutely absurd and politicized,” and said it didn’t go far enough in banning all types of weapons in space. Click here to read… [22]

Turkey’s Erdogan meets Iraq PM for talks on water, security and trade

Turkish President Recep Tayyip Erdogan has met Iraqi Prime Minister Mohammed Shia al-Sudani in Baghdad for talks on security, economic and energy cooperation. In a joint news conference on April 22, Erdogan said the two leaders discussed steps the two countries could take against the armed group the Kurdistan Workers’ Party (PKK) and welcomed Iraq’s designation of the PKK as a banned group. Erdogan said he had shared his strong belief that the PKK’s presence in Iraqi territory would end as soon as possible. The Turkish president said that cooperation on security and the fight against “terrorism” was one of the most important agenda items during his meetings in Iraq. The PKK, which has fought a decades-long rebellion against the Turkish state and is considered a “terrorist” group by Ankara and its Western allies, has a presence in northern Iraq. Since 2019, Turkey has conducted a series of cross-border operations in northern Iraq against the PKK dubbed “Claw”. Al-Sudani said Turkey and Iraq discussed security cooperation and agreed to deal with the challenge of non-state armed actors that could cooperate with “terrorist” groups. The two sides signed a strategic framework agreement to oversee security, energy and economic cooperation as well as a 10-year agreement on management of water resources that ensures Iraq will get its fair share, the Iraqi prime minister added. Click here to read… [23]

UN peacekeepers close base in preparation to leave DR Congo

The United Nations peacekeeping mission in the Democratic Republic of the Congo (DRC), which has helped in the fight against rebels for more than two decades, has closed one of its key bases as it prepares to leave the Central African nation this year at the request of the government. The mission, also known as MONUSCO, closed a major base near the city of Bukavu in a ceremony on April 25 attended by Bintou Keita, the head of MONUSCO, along with DRC military and government officials. The base, along with others slated to close by the end of the year, will be handed over to the military. UN spokesperson Stephane Dujarric told a briefing at the organisation’s headquarters in New York on April 25 that peacekeepers from Pakistan, who constituted the bulk of the forces deployed in South Kivu province, are leaving after more than 20 years of service. “Since 2003, when they were first deployed, more than 100,000 peacekeepers from Pakistan have served in South Kivu, including 31 Pakistani soldiers who died in the line of duty, in the service of the United Nations and the people of the Congo,” he said. The departure comes after the Congolese government, which was re-elected in a disputed vote at the end of December, said the increasingly unpopular mission has failed to protect civilians from armed groups. Click here to read… [24]

Saudi Arabia to Host Gaza Talks Next Week With Top US, UK and Arab Officials

Saudi Arabia plans to host a meeting on April 22 to discuss Gaza’s future with foreign officials including US Secretary of State Antony Blinken, according to people familiar with the matter. The talks in Riyadh may also include UK Foreign Secretary David Cameron and key officials from the European Union, Jordan, Egypt, and Qatar, as well as the Palestinian Authority, said the people, who asked not to be identified speaking about private matters. Officials from Israel, which doesn’t have diplomatic relations with Saudi Arabia, and Hamas are not thought to be attending. One of the people described it as a crisis meeting, designed more for initial talks between the sides than anything likely to achieve concrete outcomes. The discussions will happen on the sidelines of a special edition of the World Economic Forum. The Saudi government didn’t immediately respond to a request for comment. Saudi Arabia and other Arab states have been highly critical of Israel’s war against Hamas in Gaza and called for an immediate cease-fire. The US, UK and EU are pressuring Israel to allow more aid into the Palestinian territory to ease its humanitarian crisis and prevent a famine. Washington has also been frustrated by what it sees as a lack of Israeli planning for Gaza’s post-war situation, and by Netanyahu’s unwillingness to discuss steps toward a two-state solution with the Palestinians. Click here to read… [25]

US Defense Chief Confirms $6 Billion Arms Commitment for Ukraine

Defense Secretary Lloyd Austin confirmed April 26 a $6 billion commitment for long-term contracts to provide Ukraine with weapons such as Patriot missiles, artillery ammunition and drones. Austin laid out a broad commitment but not signed contracts, which would be likely to take months to complete under the Ukraine Security Assistance Initiative for systems that would then be delivered over time. He spoke at the Pentagon after a virtual meeting of the Ukraine Defense Contract Group, which provides military support to Ukraine in its fight against Russia’s invasion. The defense chief highlighted some of the systems that would eventually be sent to Ukraine under the initiative: Patriot missile interceptors made by RTX Corp. and Lockheed Martin Corp. as well as munitions for National Advanced Surface-to-Air-Missile Systems, artillery ammunition, ground-to-air munitions and Switchblade and Puma attack drones. Austin acknowledged Ukraine’s need for more Patriot batteries, not only the interceptors they fire, saying he’s been working with European counterparts in an effort to find countries willing to give up the prized batteries. The $6 billion in contracts is separate from Presidential Drawdown Authority packages that pull equipment from US inventories for fast deployments and later replenishment. “We are going to move as fast as we can — as fast as the industry can produce,” Austin told reporters. Click here to read… [26]

Ukraine freezes all consular services for military-aged men abroad

Ukrainian consulates are set to “temporarily suspend” all services to men between the ages of 18 and 60, who will only be able to procure documents by returning home, Ukraine's Minister for Foreign Affairs has confirmed. The measure is set to be enacted on April 23 and remain in place until the foreign ministry receives guidelines on the controversial mobilization law that was signed by President Vladimir Zelensky last week. The new legislation, which had been deliberated for weeks by the country’s parliament before being adopted, is set to take effect in May. A letter reportedly signed by Deputy Foreign Minister Andrey Sibiga and addressed to the heads of all Ukrainian foreign missions referred to two clauses providing a basis for additional restrictions on travel to and from the country, as well as limiting the movements of military-eligible individuals who lack exemptions. Top Ukrainian officials have repeatedly expressed a desire to somehow bring military-age refugees back to the country. Multiple EU nations, such as Germany, Austria, Hungary, and the Czech Republic, which have been among the prime destinations for Ukrainians fleeing the hostilities, have explicitly rejected the idea of rounding up and sending Ukrainian refugees back home. Click here to read… [27]

US considers ‘mobile bases’ for Pacific war

An American military contractor wants to repurpose unused oil rigs as mobile bases that would help resupply US Navy vessels in the Pacific and host missile launchers. Gibbs & Cox, a naval architecture subsidiary of Leidos, presented the Mobile Defense/Depot Platform (MODEP) concept at the Sea Air Space 2024 exhibit in Washington, DC earlier this month. “Our target here is to find a solution to help the challenging problem of having capacity issues in the Western Pacific. For not enough cells, not enough missiles, not enough of being able to keep those ships in the forward station,” Dave Zook, a solutions architect and combat systems department manager at Gibbs & Cox, told Naval News. The MODEP concept refers to “a large floating island base” capable of positioning itself “at an ideal distance from shore” and independently operating for almost six months. It would be configured for either a supply function or missile launching. The US Navy currently lacks the capability to reload its missile launchers at sea. The supply MODEP would solve this by having two cranes capable of lifting 100 tons each. The missile base version could hold up to 512 Vertical Launch System (VLS) missile cells, or up to 100 new Large Missile Launchers (LML). The concept also “reduces risks and costs associated with land-based defense systems,” Leidos and Gibbs & Cox also said. Click here to read… [28]

China calls for ‘international investigation’ into Nord Stream attack

China’s deputy envoy to the UN has called for an international probe into the bombing of the Nord Stream gas pipelines, adding that Russia would be involved in such an investigation. “With the situation standing where it is, one cannot help but suspect a hidden agenda behind the opposition to an international investigation, while lamenting the potential cover-up and loss of quantities of compelling evidence,” China’s Deputy Permanent Representative to the UN, Geng Shuang, said on April 26, according to the Xinhua news agency. “We reiterate our call for the early launch of a UN-led international investigation to bring the truth to light for the international community,” Geng continued, adding that Western nations should “actively communicate and cooperate with Russia and jointly investigate the incident.” Nord Stream 1 and 2 each comprised two separate pipelines, linking Russia and Germany. Three out of the four lines were destroyed in a series of explosions near the Danish Island of Bornholm in September 2022, severing Germany’s energy ties to Russia and leaving its gas-dependent economy reliant on more expensive American liquefied natural gas. Germany, Sweden, and Denmark all opened investigations into the attack, but Sweden and Denmark closed their inquiries in February. Swedish investigators published no conclusions, while the Danish team concluded that “there was deliberate sabotage,” but declined to blame the attack on anyone. Click here to read… [29]

China, France agree to deepen military cooperation as South China Sea tensions rise

The armed forces of China and France have set up a new inter-theatre cooperation and dialogue mechanism, as tensions continue to rise in the South China Sea. Collaboration between the two militaries’ naval and air forces will help to further deepen mutual trust and cooperation, and jointly safeguard regional security and stability, China’s defence ministry said in a statement on April 26. General Wang Xiubin, commander of the People’s Liberation Army’s Southern Theatre Command, and French Rear Admiral Geoffroy d’Andigne, commander of the Pacific Ocean and French Polynesian maritime zones, signed the agreement on April 25, the ministry statement said. The Southern Theatre Command is the PLA arm that oversees the South China Sea. The signing came as d’Andigne visited the Southern Theatre Command, where he also exchanged views with Wang on issues including “international and regional security situation”, the statement said. According to the Southern Theatre Command, the French delegation visited its naval and air forces during their visit from April 24 to April 26. The signing of the cooperation agreement follows a consensus reached between President Xi Jinping and his French counterpart Emmanuel Macron during his visit to China last year, when they agreed to deepen military communication and strengthen mutual understanding on security issues. Click here to read… [30]

Health

Chinese scientist who first published COVID sequence stages protest after being locked out of lab

The first scientist to publish a sequence of the COVID-19 virus in China staged a sit-in protest outside his lab after authorities locked him out of the facility — a sign of Beijing’s continuing pressure on scientists conducting research on the coronavirus. Zhang Yongzhen wrote in an online post April 29 that he and his team had been suddenly notified they were being evicted from their lab, the latest in a series of setbacks, demotions and ousters since the virologist published the sequence in January 2020 without state approval. When Zhang tried to go to the lab over the weekend, guards barred him from entering. In protest, he sat outside on flattened cardboard in drizzling rain, pictures from the scene posted online show. News of the protest spread widely on Chinese social media and Zhang told a colleague he slept outside the lab — but it was not clear April 30 if he remained there. “I won’t leave, I won’t quit, I am pursuing science and the truth!” he wrote in a post on Chinese social media platform Weibo that was later deleted. In an online statement, the Shanghai Public Health Clinical Center said that Zhang’s lab was being renovated and was closed for “safety reasons.” It added that it had provided Zhang’s team an alternative laboratory space. Click here to read… [31]

Bird flu virus found in US retail milk

Particles of bird flu have been found in samples of consumer milk in the US, the Food and Drug Administration (FDA) said on April 24, revealing the extent of an outbreak of the H5N1 strain of Highly Pathogenic Avian Influenza (HPAI). The virus has previously been detected in raw milk, the agency wrote, adding that while “pasteurization is likely to inactivate the virus,” the process is not expected to fully remove the presence of viral particles. The FDA national survey further discovered traces of bird flu in “milk from affected animals, in the processing system, and on the shelves.” “To date, we have seen nothing that would change our assessment that the commercial milk supply is safe,” the agency claimed, insisting that if the testing process finds “genetic material” from the virus, this “does not mean that the sample contains an intact, infectious pathogen.” While the FDA insists there is no real concern about the safety of pasteurized dairy products, other agencies said produce from sick cows should not be on the shelves. “Only milk from healthy animals is authorized for distribution into interstate commerce for human consumption,” the National Milk Producers Federation wrote on its website. Meanwhile, the US Department of Agriculture (USDA) has revealed that bird flu had been found in 33 herds of dairy cows in eight states as of April 22. Click here to read… [32]