Global Developments and Analysis: Weekly Monitor, 13 December - 19 December 2021

Economic

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

A massive sit-in protest has engulfed the Pakistani city of Gwadar, home to the country's flagship Belt and Road Initiative port project in the country, severely damaging prospects for more Chinese investment in Gwadar, experts say. The monthlong sit-in, led by Maulana Hidayat ur Rehman, a local political leader, has drawn thousands of people to the Give Rights to Gwadar Movement. The demonstrators, many of them women, are camped at the entrance to the Chinese-controlled port, where they listen to Rehman's fiery speeches. The protest has generated headlines in Pakistan and touched off a debate in the media. The demonstrators are demanding an end to deep-sea fishing by trawlers in nearby waters, removal of security checkpoints in the city and freer trade with neighboring Iran. The port in Gwadar is the centerpiece of $50 billion in projects that make up the Pakistan portion of China's Belt and Road Initiative, known locally as the China-Pakistan Economic Corridor (CPEC). Pakistan's Prime Minister Imran Khan acknowledged the protests on Dec 13, tweeting, "I have taken notice of the very legitimate demands of the hardworking fishermen of Gwadar. Will be taking strong action against illegal fishing by trawlers & will also speak to [the chief minister of] Balochistan." Click here to read... [2]

Spotlight on trade gateway as India hosts talks with Central Asia

An India-backed project to transform an Iranian port into a trade gateway to Central Asia is expected to be high on the agenda as New Delhi hosts annual talks with countries from the region on Dec 19. The foreign ministers of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan will join the meeting, looking to push ahead with plans to energize trade and cooperation even as chaos in neighboring Afghanistan threatens to overshadow their economies. Analysts say India sees the meeting as a prime chance to promote trade to and from Central Asia through Iran's Chabahar Port, which it has spent years helping to develop. India initially started discussions with Tehran on the port around 2003. But major progress came in 2016, when New Delhi announced during a visit to Iran's capital by Prime Minister Narendra Modi that it would invest $500 million in a mega project to develop the site. The first phase of that was inaugurated in late 2017. Chabahar sits on the Gulf of Oman, to which India has direct maritime access. The port could also open opportunities for Indian companies in Iran itself and countries beyond Central Asia such as Russia. Under the first phase of the port contract, India is required to equip and operate two berths on a 10-year lease. Click here to read... [3]

South Korea fights supply-chain risks with economic security team

South Korea is ramping up efforts to identify and mitigate supply-chain risks as shortages and restrictions at key exporters loom large over the country's most important industries. To this end, South Korea will launch a center dedicated to economic security and diplomacy under its foreign ministry as early as February. The ministry in its 2022 budget has set aside 2.55 billion won ($2.16 million) for the center, slated initially to comprise about 10 researchers. Responding to "global shifts in supply chains," the center will ascertain which parts and materials the country relies on imports and suggest ways for South Korea to diversify its supply, the ministry said. It will also place staff at South Korean diplomatic missions in strategically significant countries to conduct research. A similar team is expected to take shape under South Korea's National Intelligence Service, South Korean news outlets report. It will work with the foreign ministry center to obtain and analyze timely information regarding countries that provide key materials. China accounts for 80% or more of South Korea's supply in 1,850 materials, including rare earths. The U.S. comes next with 503, followed by Japan with 438. Click here to read... [4]

Japan to require cyber defenses at infrastructure companies

Japan looks to require that companies in key infrastructure sectors such as finance, telecom and transport have plans for coping with cyberattacks, in response to a rise in such incidents globally. The government will urge corporate managers to take the lead in making organizational changes and devising these plans, in addition to ensuring that equipment is secure. Tokyo will spell out these steps by April as it makes the first full revision of the country's key infrastructure action plan since 2017. The new rules, which focus on economic security, will take effect in fiscal 2022. Countries worldwide are scrambling to bolster defenses, viewing an all-hands-on-deck approach as necessary to deal with increasingly sophisticated attacks. Japan regards roughly 1,700 financial institutions as key infrastructure, according to official data as of the end of fiscal 2020. About 1,300 telecommunications operators, 22 railways and 29 utilities also would be covered by the new rules. The other sectors are airlines, airport operators, gas providers, government services, medical institutions, waterworks, logistics, chemicals, credit and oil. Japan's cybersecurity plan previously has been part of government guidelines, but not legally binding. The anticipated revision will make the plan more effective, as measures would be clearly based on cybersecurity laws. Click here to read... [5]

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

China's central bank decided to lower the benchmark loan prime rate (LPR) for the first time in 20 months, following a 50 basis-point universal cut in the reserve requirement ratio (RRR) on December 15, in line with the policy guideline released by the Central Economic Work Conference to accelerate economic growth in 2022. The one-year LPR was set at 3.8 percent compared with 3.85 percent over the past 20 months, while the five-year LPR remains unchanged at 4.65 percent, according to a statement released by the People's Bank of China on Dec 20. The central bank decision to trim LPR will reduce the financing cost of Chinese enterprises in order to better stimulate their vitality and stave off downward economic pressure at the end of 2021, analysts said. China has kept the LPR unchanged for 20 months. The last time that the country adjusted the LPR was in April 2020, when the one-year LPR was cut from 4.05 percent to 3.85 percent. The LPR is a lending reference rate announced monthly by the central bank, taking in account of 18 commercial lenders which submit a monthly quotation by adding a premium over the Medium-term Lending Facility rate. It is also seen as the de facto benchmark reference rate for lending by Chinese banks. Click here to read... [6]

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

With the phase-one trade deal between the world’s two largest economies due to expire at year’s end, Chinese scholars say supply-side issues are an impediment to China’s ability to meet purchasing targets. Multiple sources in China also told the Post that the two countries have engaged in phase-one discussions at various levels and with more frequency than has been publicly disclosed. And before the Xi-Biden summit in November, they say, the China side vowed to “buy whatever the US can ship over”. But for now, China continues to lag behind in its commitment to buy at least US$200 billion worth of additional American goods and services, relative to the 2017 level, including US$162.1 billion worth of physical goods. China’s total purchases of US goods from January 2020 to October 2021 reached only 60 per cent of the pledged total, according to a report by the Peterson Institute for International Economics (PIIE). Supply-chain disruptions, which intensified this year, have inevitably weighed on China’s imports of American goods, according to analysts. However, such disruptions have not been a determining factor, and neither is politics. For some products, China is more than willing to use its state power to stockpile amid volatility in the commodities market. But for others, China simply does not need, or is unwilling to buy, so much. Click here to read... [7]

China and Russia to establish independent financial systems: Russian media

Russia and China have agreed to develop shared financial structures to deepen economic ties in a way that will not be affected by pressure of third countries following talks between the top leaders, Russian media outlet RT reported on Dec 15. The move will help both countries deter the threat of the US government's long-arm jurisdiction based on the US dollar denominated international payment network, experts said. During the talks on Dec 15, top leaders of the two countries called for increasing the share of national currencies in mutual settlements and expanding cooperation to provide Russian and Chinese investors with access to stock markets, said Yuri Ushakov, Putin's foreign policy advisor, according to RT. Ushakov said that "particular attention was paid to the need to intensify efforts to form an independent financial infrastructure to service trade operations between Russia and China." "We mean creating an infrastructure that cannot be influenced by third countries," Ushakov added. The move appears to be Russian's response to a series threats that the US could push to disconnect Russia from the Brussels-based SWIFT financial system as a form of sanctions, Li Xin, Director of the Center for Russian and Central Asia Studies at the Shanghai Institutes for International Studies, told the Global Times on Dec 16. Click here to read... [8]

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

TikTok-owner ByteDance surpassed Ant Group to become the world’s largest unicorn, with start-ups from the US and China continuing to dominate the landscape, according to the latest Hurun Global Unicorn Index. This is despite Chinese companies coming under regulatory scrutiny both at home and in the US. Of the 1,058 unicorns – start-ups valued at more than US$1 billion – globally as of November this year, China had 301 start-ups, the most after the 487 in the US, according to this year’s index released by Shanghai-based Hurun Research Institute on Dec 20. Beijing-based ByteDance, whose flagship app TikTok has 1 billion monthly active users globally and is viewed as a serious challenger to Facebook, saw its valuation surge nearly 30 per cent to US$350 billion, from US$270 billion last year. Ant Group, an affiliate of Alibaba Group Holding and operator of online payment platform Alipay, was valued at US$150 billion. The top 10 largest global unicorns made up 25 per cent of the overall value of the world’s unicorns of US$3.7 trillion, according to the report. Four of them were from the US, three from China, while Australia, UK and Sweden had one each. Click here to read... [9]

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

On Dec 16, the Biden administration blocked American investment in the company, a year after President Donald Trump prohibited it from sourcing US parts. Now, lawmakers from both parties are weighing a bill that would ban federal purchases of DJI drones, while a member of the Federal Communications Commission wants its products taken off the market in the US altogether. In many ways, DJI has become the poster child of a much wider national security threat: The Chinese government’s ability to obtain sensitive data on millions of Americans. Chinese President Xi Jinping has been far ahead of the West in realising the importance of data in gaining both an economic and military advantage, according to Matt Pottinger, a former deputy national security adviser in the Trump Administration. In the drone world, no firm is more prolific than DJI: The Chinese company commands more than 50 per cent of the US drone market, the FCC said in October, and research firm DroneAnalyst estimates it sells about 95 per cent of the unmanned aerial vehicles, or UAVs, priced between US$350 and US$2,000 targeted at consumers. Click here to read... [10]

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

China’s expanding grip on data about the world’s cargo flows is sparking concern in Washington and among industry officials that Beijing could exploit its logistics information for commercial or strategic advantage. Even cargo that never touches Chinese shores often still passes through Beijing’s globe-spanning logistics networks, including through sophisticated data systems that track shipments transiting ports located far from China. Control over the flow of goods and information about them gives Beijing privileged insight into world commerce and potentially the means to influence it, say cargo-industry officials. With ports clogged globally and shortages plaguing many industries, shipping data has become an enormously valuable commodity. Foremost among China’s cargo-data systems is Logink, a digital network that links shippers internationally and describes itself as a “one-stop logistics information service platform.” Logink says it draws on a mix of public databases and information input by more than 450,000 users in China and at dozens of giant ports world-wide, including across the Belt and Road initiative, China’s trillion-dollar international infrastructure project, and as part of what Beijing calls the Digital Silk Road. Logink’s international reach highlights a field critical to the world economy where the West lags behind China. Digitization of cargo data has been a dream of shippers for years. Click here to read... [11]

Turkish, Qatari companies sign MoU to operate 5 Afghan airports

Turkish and Qatari companies inked a Memorandum of Understanding (MoU) to jointly run five airports in Afghanistan, including Kabul airport, Turkish Foreign Minister Mevlut Cavusoglu said on Dec 20. A Turkish delegation will travel to Doha on late Dec 20 to discuss the deal for operating the Afghan capital's airport, and later they will head to Kabul together to have talks with the interim government of Afghanistan, Cavusoglu said at a press conference. "We will present joint proposals to the Afghanistan interim administration," he noted. "If our conditions are met, we can operate the airports with Qatar. If the conditions are not met, there is no obligation for us to operate them," he said. The Taliban group have taken control of Afghanistan after the U.S. forces withdrew from the country in summer. Click here to read... [12]

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

Turkey's lira dropped further on Dec 20 before recovering slightly following a speech by Turkish President Recep Tayyip Erdogan on state television that cited Islam as a reason for not raising interest rates despite a rapidly depreciating currency and rampant inflation. Erdogan has repeatedly called on the central bank to lower borrowing costs despite an annual inflation rate of more than 20%. Mainstream economists believe the outcome of Erdogan's Islamic-infused experiments with the currency could result in consumer inflation reaching 30% or higher in the months ahead. However, in his remarks on state television, Erdogan insisted it was Islam that guided his decision in demanding the central bank keep interest rates low. He also promised aid to exporters and increased government contributions to pension funds. "As a Muslim, I will continue doing what our religion tells us. This is the command," Erdogan said. At one point in Dec 20's trading, the lira dropped more than 11% against the dollar to around 18.40, an all-time low, before recovering some of those losses later in day. Many Turks are struggling to afford basic goods and services. Click here to read... [13]

Strategic

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

Russia and China appear to be making headway toward a new gas pipeline that analysts say would help both countries hedge against growing tensions with the West. On Dec 15, presidents Vladimir Putin and Xi Jinping held a video call in which they presented a united front on issues ranging from the U.S.-led AUKUS partnership, the Biden administration's recent Summit of Democracies and NATO's expansion to the east. Yuri Ushakov, Putin's foreign policy adviser, said the leaders also spoke about the Power of Siberia-2 project -- a proposed mega-pipeline through Mongolia that could deliver up to 50 billion cu. meters of Russian gas to China annually. Just one day later, Putin hosted Mongolian President Ukhnaagiin Khurelsukh at the Kremlin to discuss the progress being made on Power of Siberia-2 among other issues. Although Moscow and Beijing still have to agree on pricing for Power of Siberia-2 before construction can begin, industry watchers predict that the long-awaited pipeline will not only significantly boost Russian gas exports to China -- which has faced severe energy shortages this year -- but also reduce Moscow's dependence on European markets and Beijing's reliance on maritime routes controlled by U.S. warships. Click here to read... [14]

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

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

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

Beijing welcomes mutually beneficial cooperation and healthy competition with the United States but is not afraid of confrontation, Chinese Foreign Minister Wang Yi said. “China’s attitude is consistent and clear,” Wang said on Dec 20. “Dialogue is OK, but it should be equal; cooperation is welcome, but it should be reciprocal; competition is not harmful, but it should be healthy. [China] is not afraid of confrontation and will [persist] to the end.” The comments were made at a symposium in Beijing on China’s diplomacy, two weeks after the US hosted a democracy summit without China and announced a diplomatic boycott of the 2022 Winter Olympics in China over the country’s human rights record. Noting that 2022 would be 50 years since former US president Richard Nixon’s historic visit to China that broke the ice between the two countries, Wang said on Dec 20 that Beijing and Washington should again work to achieve a thaw. The speech outlined China’s diplomacy priorities for the next year, listing the Olympics as the top item and briefly covering Beijing’s plans for its ties with Russia and European nations before turning last to US-China relations. Click here to read... [16]

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

The United Arab Emirates has informed the United States that it will suspend discussions to acquire F-35 fighter jets, a UAE official said on Dec 14, part of a $23 billion deal that also includes drones and other advanced munitions. The sale of 50 F-35 warplanes made by Lockheed Martin to the UAE had slowed amid concerns in Washington over Abu Dhabi's relationship with China, including use of Huawei 5G technology in the country. "Technical requirements, sovereign operational restrictions, and cost/benefit analysis led to the re-assessment," the UAE official said in a statement to Reuters that confirmed a report in the Wall Street Journal. "The U.S. remains the UAE's preferred provider for advanced defense requirements and discussions for the F-35 may be re-opened in the future," the official said, adding there were discussions to "address mutual defense security conditions for the acquisition". A person briefed on the negotiations said for several months sticking points between the United States and the UAE revolved around how the stealthy jets can be deployed and how much of the sophisticated F-35 technology the Emiratis will be allowed to take advantage of. Click here to read... [17]

Japan Foreign Ministry to create senior post on Taiwan

The Japanese Foreign Ministry plans to create a senior position dedicated to Taiwan-related issues in fiscal 2022, reflecting Tokyo's concern over rising tensions between Beijing and Taipei. The senior coordinator for Taiwan affairs will work under the ministry's First China and Mongolia Division, according to a proposal presented to members of the ruling Liberal Democratic Party on Dec 17. "We're seeing a growing number of tasks related to Taiwan in national security, foreign policy and economic security," Masahisa Sato, director of the LDP Foreign Affairs Division, said in announcing the planned role to reporters. "It's a big step." The official also will handle diplomatic issues tied to the East China Sea including the Japan-administered Senkaku Islands, which China claims as the Diaoyu. The proposal comes amid tensions in the Taiwan Strait. China repeatedly sends warplanes into Taiwan's air defense identification zone, raising concerns that Beijing may be rehearsing for a military invasion of the island. "It looks a lot like them exploring their true capabilities," U.S. Secretary of Defense Lloyd Austin said at the Reagan National Defense Forum in California earlier this month. Click here to read... [18]

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

For more than 20 years, Xie Xizhang presented himself as a Hong Kong businessman on visits to Taiwan. He now stands accused of having another mission: Recruiting spies for China. On one trip in 2006, Xie met a senior retired Taiwanese navy officer, Chang Pei-ning, over a meal, according to official documents accusing the pair of espionage. Chang would become one of Xie's agents, the documents allege, helping him penetrate Taiwan's active military leadership as part of a long-running Chinese operation to build a spy ring among serving and retired military officers. This comes amid a series of convictions for military espionage in Taiwan in recent years. Those cases reveal that China has mounted a broader campaign to undermine the democratic island's military and civilian leadership, corrode its will to fight, extract details of high-tech weapons and gain insights into defence planning, according to senior retired Taiwanese military officers and current counterespionage agents, as well as former US military and intelligence officers with experience in Taiwan. Taiwan's spy catchers are battling a campaign that has compromised senior officers at the heart of the island's armed forces and government agencies, a steady stream of convictions handed down in the courts shows. Beijing has even penetrated the security detail assigned to protect Taiwan's President Tsai Ing-wen. Click here to read... [19]

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

Congress wants the U.S. military to further strengthen its posture in the Indo-Pacific region to fend off Chinese aggression. That was the message sent when the Senate passed the annual defense spending bill Dec 15, taking a more hawkish stance than the White House's budget request from May. The bigger spending bill allows the Pentagon to build more ships and retire fewer. A fund specifically aimed at the Indo-Pacific was tripled from the year before. The $778 billion bill for fiscal 2022, up 5% from the prior year, cleared the House earlier this month and will be signed into law soon by President Joe Biden. Lawmakers' hawkish tilt toward China was underscored by the $7.1 billion earmarked for the Pacific Deterrence Initiative (PDI) -- more than the $5.1 billion requested by the administration. The U.S. looks to disperse its Pacific forces along the "first island chain," which spans Okinawa, Taiwan and the Philippines, as concentrating them in just a few locations risks leaving them vulnerable to a Chinese missile strike. The PDI will be used to ramp up construction and updating of base infrastructure and military facilities, as well as improve supply lines for resources such as ammunition and fuel. Part of the PDI funding is expected to go toward missile defense. Click here to read... [20]

UN talks on killer robots fail

UN talks aimed at thrashing out rules on the use of fully autonomous weapons systems have stumbled on stiff opposition from countries that invest heavily in military AI, leaving a legal vacuum. On Dec 17, the sixth review conference of the Convention on Certain Conventional Weapons (CCW) failed to arrange further negotiations on the use of Lethal Autonomous Weapon Systems (LAWS). Parties to the convention merely agreed to continue discussions instead. Despite calls for an “ambitious plan” made earlier by UN Secretary-General Antonio Guterres, the five-day gathering in Geneva bore little fruit, after nations that are investing heavily in the development of ‘killer robots’ blocked a decision on the establishment of legally-binding rules. According to Reuters, citing unnamed sources, among the vetoing countries were the US, Russia, and India. A number of states and NGOs have expressed dismay at the lack of progress in Geneva. Austrian Foreign Minister Alexander Schallenberg and New Zealand Minister for Disarmament and Arms Control Phil Twyford have pointed out the importance of developing new international laws regulating autonomous weapons. Click here to read... [21]

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

The Atomic Energy Organization of Iran (AEOI) on Dec 19 began technical and security inspection of cameras which are to be installed at Iran's Karaj centrifuge producing plant by the International Atomic Energy Agency (IAEA), Behrouz Kamalvandi, the spokesman for the AEOI announced. Iran had set three conditions for the replacement of damaged cameras in Karaj, which are "carrying out judicial and security investigations on the dimensions of sabotage, condemnation (of sabotage act) by the IAEA and technical and security inspections of the cameras before installation," Kamalvandi told Iran's state TV in an interview. "Iran's voluntary act to issue a license to replace these cameras was not due to a new agreement (with the IAEA), but it was done after these three preconditions are met," he said. On Dec 26, Kamalvandi said that following exchange of views between the AEOI and the IAEA, it was decided that the agency should cooperate duly with the AEOI to ensure that the cameras would not be used for acts of sabotage at TESA Karaj Complex, a centrifuge component manufacturing workshop in north-central part of the country. IAEA Director General Rafael Mariano Grossi said Dec 15 that reinstallation of surveillance cameras at the facility is an important development for the IAEA's verification and monitoring activities in Iran. Click here to read... [22]

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

The UN Security Council decided on Dec 17 to extend for 12 months the mandate of the team monitoring sanctions against individuals and entities associated with the Taliban, as well as other individuals, groups, undertakings and entities associated with the Taliban in constituting a threat to the peace, stability and security of Afghanistan. Unanimously adopting Resolution 2611, the 15-member council directed the monitoring team to gather information on instances of non-compliance with the measures imposed in Resolution 2255, and to facilitate, upon request by member states, capacity-building assistance. It further directed the monitoring team to provide recommendations to the committee on actions taken to respond to non-compliance. The council highlighted the importance of ensuring that the monitoring team receives the necessary support to effectively, safely and in a timely manner fulfil its mandate. The council also decided to actively review the implementation of the measures outlined in this resolution and to consider adjustments, as necessary, to support peace and stability in Afghanistan. Click here to read... [23]

Islamic countries pledge fund to stave off Afghanistan 'chaos'

Islamic countries pledged on Dec 19 to set up a humanitarian trust fund for Afghanistan as, with millions facing hunger and a harsh winter setting in, Pakistan's prime minister warned of chaos if the worsening emergency was not urgently addressed. The crisis is causing mounting alarm but the international response has been muted, given Western reluctance to help the Taliban government, which seized power in August. "Unless action is taken immediately, Afghanistan is heading for chaos," Prime Minister Imran Khan told a meeting of foreign ministers from the Organisation of Islamic Cooperation in Islamabad. The trust fund, announced by Pakistan's foreign minister Shah Mahmood Qureshi, will be set up under the aegis of the Islamic Development Bank. Allowing Afghanistan access to reserves frozen outside the country would be key to preventing economic collapse, participants in the meeting - which included representatives from the United Nations, United States, European Union and Japan - said in a statement. But it was unclear how much the fund would contain and the meeting did not provide official recognition to the Taliban government. Acting Afghan foreign minister Amir Khan Muttaqi said the government had restored peace and security and done much to address demands for more inclusiveness with respect for human rights, including the rights of women. Click here to read... [24]

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

Pro-Beijing candidates swept to victory in an overhauled “patriots”-only legislative election in Hong Kong that was deemed regressive by critics, with turnout hitting a record low amid a crackdown on the city’s freedoms by China. The turnout of 30.2 percent was almost half that of the previous legislative poll in 2016, with the latest results showing almost all of the seats being taken by pro-Beijing and pro-establishment candidates. Some of these candidates cheered on stage at the central vote counting center and chanted “guaranteed win.” When asked if her political party lacked a public mandate given the low turnout, Starry Lee, the head of the pro-Beijing Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) that won half of the directly elected seats, said the electoral revamp would improve governance. “I do not believe this (the low turnout) is directly related to citizens not agreeing with this electoral system. I believe it needs some time for people to get adapted to this system,” she told reporters at the vote counting center. The election--in which only candidates screened by the government as “patriots” could run--has been criticized by some activists, foreign governments and rights groups as undemocratic. Mainstream pro-democracy parties did not participate, saying they could not endorse any candidates for a poll that was undemocratic. Click here to read... [25]

2,500 Myanmar villagers flee army troops into Thailand

Fighting between Myanmar government forces and ethnic guerrillas has sent about 2,500 villagers fleeing across the border into Thailand, a Thai army officer said Dec 17. The exodus was the biggest since April, when several thousand villagers from Myanmar's eastern state of Karen fled to Thailand following airstrikes by Myanmar government forces in territory held by the Karen ethnic minority. They were allowed to stay for a few days then returned to Myanmar. The Karen are one of several ethnic minorities who have been battling for decades for greater autonomy from Myanmar's central government. Fighting between the two sides is intermitten but heated up after the military in February seized power from the elected government of Aung San Suu Kyi. A Thai army officer in the western border province of Tak told The Associated Press that around 2,500 villagers from Myanmar had crossed the Moei River, which marks the border, since Dec 16 to seek shelter in Thailand's Mae Sot district. The officer, who spoke on condition of anonymity because he is not authorized to release information, said Thai authorities provided the evacuees ― mostly women and children ― with humanitarian assistance including shelter and food, and tested them for COVID-19. Click here to read... [26]

US announces new 'special coordinator' for Tibet

The United States named a new "special coordinator for Tibetan Issues" on Dec 20, who will be tasked with restarting dialogue between the Dalai Lama and China, as well as promoting "respect for the human rights" of Tibetans. By assigning the role to a high-ranking official - Under Secretary Uzra Zeya - the Biden administration was demonstrating its commitment to addressing Tibetan issues, Secretary of State Antony Blinken said in an announcement. While continuing to serve in her current role, Zeya will "promote dialogue between the government of the People's Republic of China (PRC) and the Dalai Lama, his representatives, or democratically elected Tibetan leaders", Blinken said. The announcement will likely increase tension between the United States and China. President Joe Biden had been pressed to act after a bipartisan group from Congress wrote to him in mid-December, requesting that he meet with the Dalai Lama, 86, and press China to restart negotiations which ended over 12 years ago. China's lack of interest in dialogue has led many observers to believe that Beijing is waiting out the Dalai Lama, hoping that the global movement he has built for greater rights in Tibet will wither away without the leadership of the Buddhist monk turned cultural iconClick here to read... [27]

Erdogan seeks to boost ties at Turkey-Africa summit

Turkey is aiming to deepen economic and military ties on Africa, President Recep Tayyip Erdogan said in remarks at a major summit of African heads in Istanbul and called for a seat representing the continent at the UN Security Council. Heads of state from 16 African nations, along with more than 102 ministers and representatives of the African Union and the Economic Community of West African States are attending the summit in Istanbul. The Third Turkey-Africa Partnership Summit follows a flurry of activity by Turkey aimed at boosting ties with the continent. In October, Istanbul hosted business leaders and dozens of ministers from African states for a summit aimed specifically at increasing trade. The same month, Erdogan visited Angola, Nigeria, and Togo. “One-point-three billion people live on the African continent, and it is not represented at the Security Council,” Erdogan said on Dec 18. “This is a huge, flagrant injustice. I am still excited and thrilled every time I visit the continent,” Erdogan said, adding that he had made more than 50 trips to the continent and visited more than 30 countries since 2004. “This summit is a testament to the fact that Turkey is interested in Africa and Turkey’s interest in Africa is not a temporary interest, it is a maintained commitment. Our African brothers and sisters are showing they are interested in better cooperation with Turkey.” Click here to read... [28]

Biden administration puts North Korean nuclear issue on backburner

The North Korean nuclear issue appears to have lost priority with the U.S. government, which is focusing heavily on ending China's control of global supply chains, cross-strait relations and other issues. As Washington shows signs of preserving the status quo with the Kim Jong-un regime, which has in recent years refrained from testing nuclear and long-range missiles, the issue, described as "unproductive," is feared by some to remain shelved. In April, after its months-long policy review of the totalitarian state, the Joe Biden administration came up with a "calibrated practical approach" to North Korea's decades-long nuclear problem. However, combined with Pyongyang's nonresponse to U.S. overtures and U.S. refusals to offer enticements to engage the reclusive state, negotiations on denuclearizing the North have made little progress. U.S. National Security Adviser Jake Sullivan admitted, Dec 17 (local time), that the U.S. "had not gotten traction in diplomacy with North Korea on that over the course of this year." "The North Korean nuclear issue was already low on Biden's agenda as the Kim regime has remained unresponsive to U.S. calls to return to the negotiating table," said Shin Beom-chul, director of the Center for Diplomacy and Security at the Korea Research Institute for National StrategyClick here to read... [29]

Medical

WHO sounds warning over fast-spreading Omicron

The Omicron variant of the coronavirus is spreading faster than the Delta variant and is causing infections in people already vaccinated or who have recovered from the COVID-19 disease, the head of the World Health Organization (WHO) said on Dec 20. WHO chief scientist Soumya Swaminathan added it would be "unwise" to conclude from early evidence that Omicron was a milder variant that previous ones. "With the numbers going up, all health systems are going to be under strain," Soumya Swaminathan told Geneva-based journalists. The variant is successfully evading some immune responses, she said, meaning that the booster programmes being rolled out in many countries ought to be targeted towards people with weaker immune systems. "There is now consistent evidence that Omicron is spreading significantly faster than the Delta variant," WHO director-general Tedros Adhanom Ghebreyesus told the briefing. "And it is more likely people vaccinated or recovered from COVID-19 could be infected or re-infected," Tedros said. Their comments echoed the finding of study by Imperial College London, which said last week the risk of reinfection was more than five times higher and it has shown no sign of being milder than DeltaClick here to read... [30]

Novavax’s Covid-19 Vaccine Approved by EU

Novavax Inc.’s Covid-19 vaccine was recommended for use by the European Medicines Agency, marking the first endorsement by a major regulator of a shot that uses an established technology. A scientific committee said the Novavax shot, dubbed Nuvaxovid, was safe and effective. The European Commission almost immediately granted conditional marketing authorization in the European Union. The approval applies to adults only. The endorsement broadens the EU’s Covid-19 vaccine menu to include a technology that is widely used against other diseases, including in some routine childhood immunizations, for example against hepatitis B. The use of a long-established vaccine technology may help overcome concerns among people who have been hesitant to take up shots so far. Novavax Chief Executive Stanley Erck said the authorization came “during a critical time when we believe having choice among vaccines will lead to increased immunization.” The shots also can be stored at normal refrigerator temperatures, averting the need for the freezers required for some other Covid-19 vaccines. The shot’s efficacy against symptomatic Covid-19 in clinical trials was around 90%, said the EMA. It is the fifth vaccine to win the endorsement of the EMA, and the first to use a traditional approach to vaccination. Click here to read... [31]

S. Korea plans restrictions as it sets new virus record

Halting its steps toward normalcy, South Korea will clamp down on social gatherings and cut the hours of some businesses to fight a record-breaking surge of the coronavirus that has led to a spike in hospitalizations and deaths. Prime Minster Kim Boo-kyum confirmed the government’s intent to restore stricter social distancing measures during a virus meeting on Dec 15 as the country set another new one-day record in infections with 7,850 cases, the fourth time this month the daily tally exceeded 7,000. The country’s death toll is now 4,456 after 70 virus patients died in the past 24 hours, while a record 964 patients were in critical or serious condition. Officials previously said the country’s medical system could buckle if the number of serious cases topped 1,000 because it would greatly hamper hospitals’ ability to respond not only to COVID-19 but also to other medical conditions. The virus surge has been a rude awakening for South Korea, which significantly eased social distancing rules and fully reopened schools in November in what officials had described as a first step toward restoring pre-pandemic normalcy. Click here to read... [32]