Global Developments and Analysis: Weekly Monitor, 15 August - 21 August 2022

Economic

China's political advisors discuss employment-first policy

The Standing Committee of the Chinese People's Political Consultative Conference (CPPCC) National Committee convened a meeting on Aug 22 to discuss the implementation of the country's employment-first policy. Wang Yang, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and chairman of the CPPCC National Committee, attended the opening meeting of the 23rd session of the Standing Committee of the 13th CPPCC National Committee. Vice Premier Hu Chunhua, also a member of the Political Bureau of the CPC Central Committee, attended the meeting, delivered a report, and listened to opinions and suggestions. Hu called on the relevant authorities to adopt detailed and effective policies and measures to stabilize employment and make intensified efforts to stabilize and expand employment, ensure employment for key groups, improve employment services, and protect the labor rights and interests of employees to prevent and defuse risks and potential dangers in this regard. Presiding over the meeting, Zhang Qingli, vice chairman of the CPPCC National Committee, called on political advisors to contribute wisdom and strength to achieving fuller, higher-quality employment. Click here to read... [2]

Russia continues to stockpile forex reserves

Russia’s international holdings have reached $580.6 billion as of August 12, according to data published by the country’s central bank on Aug 18. Moscow has been boosting its reserves as a shield against sanctions. The central bank regularly publishes updates on its reserves with a one-week lag. International reserves consist of foreign-currency funds, special drawing rights with the IMF and monetary gold. Total reserves surged by $5.8 billion from the previous week, the regulator said, noting that the 1% rise was due to a positive market revaluation. The historical maximum of $643.2 billion was recorded in February 2022. Russia lost access to roughly half of its foreign reserves in early March after they were frozen by Western central banks as part of sanctions introduced by the US and its allies in response to the conflict in Ukraine. Despite this, the Russian Finance Ministry said the country would be able to cope with sanctions thanks to its abundant reserves. Click here to read... [3]

Oil prices rise after Saudi says OPEC could cut output

Oil prices edged up on Aug 23, after Saudi Arabia warned that OPEC could cut output to correct a recent drop in oil futures. Brent crude futures rose 32 cents to US$96.80 a barrel by 0004 GMT, after a choppy session on Aug 22 when they dropped by more than US$4 before paring losses to trade near flat. U.S. West Texas Intermediate crude futures rose 37 cents to US$90.73 a barrel by 0004 GMT. The benchmarks are down about 12 per cent and 8 per cent this month, respectively. The Organization of the Petroleum Exporting Countries stands ready to reduce production to correct the recent oil price fall driven by poor futures market liquidity and macro-economic fears, which has ignored extremely tight physical crude supply, OPEC's leader Saudi Arabia said on Aug 22. Saudi state news agency SPA cited Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman as telling Bloomberg that OPEC+ has the means and flexibility to deal with challenges. Meanwhile, Europe faces fresh disruption to energy supplies due to damage to a pipeline system bringing oil from Kazakhstan through Russia, adding to concerns over a plunge in gas supplies. Click here to read... [4]

Commodity firms buckling under energy crisis – Bloomberg

The worsening energy crisis is piling pressure on vital commodities industries across the globe, Bloomberg reported on Aug 18. According to the article, energy-intensive sectors such as steel, fertilizers and aluminum are being forced to close factories or pass on soaring costs. The situation could get much worse this winter, when gas supplies are set to become even tighter, it notes. “Europe has already lost about half of its zinc and aluminum smelting capacity over the past year, and more is set to go offline,” the outlet said. In China, droughts have curbed crucial hydropower output and hurt smelter production. US suppliers have also been suffering, with major producer Century Aluminum planning to lay idle its massive Kentucky plant due to skyrocketing energy costs. Power cuts in China’s Sichuan province have affected more than 70% of the local steel mills, which is putting pressure on prices of iron ore, which is used to make steel. In the US, at least two steel mills have started suspending operations to cut energy costs. The report also highlighted that at least a quarter of Europe’s nitrogen fertilizer capacity is already thought to have been lost, with its global usage forecast to drop the most since 2008 next season. Click here to read... [5]

Almost two-thirds of Europe is affected by drought — EU

Nearly two-thirds of Europe is threatened by drought, according to a report by the Joint Research Centre, the European Commission's science and knowledge service. The drought may be the worst "for at least 500 years," European Commission spokesperson Johannes Bahrke said on Aug 23. "This is of course only a first assessment, and we need to confirm this with final data at the end of the season," Bahrke said, referring to the report, which was published on Monday. According to the report, 47% of Europe is under warning conditions, with a clear deficit of soil moisture. A further 17% is in a state of alert, in which vegetation is affected. Scarce rain and successive heat waves that began in May have affected river discharges and water levels. "The severe drought affecting many regions of Europe since the beginning of the year has been further expanding and worsening as of early August," the report found. What are the consequences of the drought in Europe? The dry conditions have already affected inland waterway transport, power generation and yields of certain crops in Europe. "Soil moisture and vegetation stress are both severely affected," the report found, listing over a dozen countries where drought hazard has been increasing, including Germany, France and Britain. "The rest of Europe, already affected by drought, maintains stable severely dry conditions," according to the report. Click here to read... [6]

China’s heatwaves stoke drought fears ahead of ‘critical’ autumn grain harvest

Chinese authorities are making disaster-relief preparations to ensure a strong autumn grain harvest amid warnings of more droughts and flooding across the country. Parts of southern China have been gripped by heatwaves and drought in recent months, with water levels in the country’s largest river and its two biggest freshwater lakes at record lows. The China Meteorological Administration has said the drought conditions are set to continue and also warned about the danger of flooding, which typically occurs during summer. With the all-important autumn grain harvest on the horizon, Chinese authorities are on high alert for the likelihood of more extreme weather events. “August and September are critical periods for the formation of autumn grain production, so close attention should be paid to the impact of natural disasters and pests on grain production,” said Fu Linghui, spokesman for the National Bureau of Statistics. Vice-Premier Hu Chunhua said on Aug 16 China would go all-out with disaster-relief measures to meet the annual grain production target of more than 650 billion kilograms. The autumn harvest accounts for three-quarters of China’s annual total, Hu told a meeting on third quarter agricultural priorities. Click here to read... [7]

China’s power cuts put spotlight on manufacturing risk in hydropower-reliant southwest

Disruptions to electricity supply in southwestern China could see manufacturers invest in cooler and less hydropower-dependent provinces in the future, but this summer’s heatwave is unlikely to make them relocate outright, analysts said. Since June, temperatures of more than 40 degrees Celsius (104 Fahrenheit) have smothered parts of China, from Sichuan in the west to Shanghai in the east, causing the country’s most severe heatwave since 1961. Manufacturing hubs along the Yangtze River are restricting power consumption in multiple industries to accommodate demand, while the government has called for more coal-fired power as reservoirs used by hydropower suppliers run low in the drought conditions. If disruptions become more regular, manufacturers may channel future investment for factories towards cooler and more coal-reliant coastal regions, despite higher operating costs and the central government’s long-term goal of stimulating western provincial economies, experts said. “At this moment locally they don’t have many options because Sichuan has such a concentration of hydropower,” said Ma Jun, founding director of the Beijing-based Institute of Public & Environmental Affairs. Today, the southwest contributes to China’s reputation as the world factory, churning out cars, technology and consumer goods. Value-added output in Sichuan was 1.52 trillion yuan last year, 4.1 per cent of the national total. Industry in Chongqing reached a value-added total of 451 billion yuan in 2021. Click here to read... [8]

Bangladesh goes for reduced gov't working hours to save electricity, ease traffic gridlock

Energy-starved Bangladesh on Aug 22 decided to reschedule the office hour of government and autonomous institutions to save electricity and ease traffic gridlock. The decision was made at a cabinet meeting with Prime Minister Sheikh Hasina in the chair, Cabinet Secretary Khandker Anwarul Islam told journalists. He said government offices and autonomous institutions will remain open from 8:00 a.m. local time to 3:00 p.m. local time instead of the usual eight hours from 9:00 a.m. to 5:00 p.m. According to the cabinet secretary, banks in the country will remain open from 9:00 a.m. to 4:00 p.m. He said the government decided to keep educational institutions closed two days a week to save energy, adding the decision which will come into force from Aug 24 is aimed at saving electricity and easing the perennial traffic congestion in the capital Dhaka. In light of the crisis caused by the Ukraine war, Bangladesh last month announced a country-wide load shedding up to two hours daily. Hasina had earlier called all to maintain austerity and increase savings for any crisis in the future. She said the prices of fuel oil have soared, and many countries have been facing a scarcity of power amid the recent global economic turmoil due to the impact of the COVID-19 pandemic and the Russia-Ukraine conflict. Click here to read... [9]

Bhutan bans import of most vehicles as foreign exchange reserves plummet

Bhutan will ban the import of all vehicles except utility vehicles, heavy earthmoving machines and agriculture machinery to save dwindling foreign exchange reserves, the government said in a notice seen by Reuters on Aug 19. Nestled between China and India, the country of fewer than 800,000 people is grappling with the effects of soaring oil and grain prices caused by the war in Ukraine as well as with the continued impact of the pandemic, including a strict zero-COVID policy that has barred foreign tourists for the past two years. Foreign exchange reserves had declined to $970 million at the end of December, 2021, from $1.46 billion in April 2021, according to data released last month by the Royal Monetary Authority of Bhutan. The ministry of finance said in a notification that the import of utility vehicles costing less than 1.5 million ngultrums ($20,000) would be allowed and those for the use and promotion of tourism would be exempted. "The moratorium is implemented to ensure adequate foreign currency reserves for maintaining macroeconomic stability," it said. The daily Kuensel newspaper said Bhutan imported more than 8,000 vehicles in the year to June and that this was one of the main contributing factors to the depletion of reserves. Bhutan is mandated by its constitution to maintain reserves to cover at least 12 months of imports. Click here to read... [10]

U.S. to host Indo-Pacific economic framework minister talks in September

The first in-person ministerial meeting of the Indo-Pacific Economic Framework involving 14 countries including Japan and the United States is expected to be held early next month in Los Angeles, Japanese government sources said Aug 21. Japan's Economy, Trade and Industry Minister Yasutoshi Nishimura will be among the attendees at the two-day meeting from Sept. 8, as the delegates aim to push forward negotiations under the U.S.-led trade initiative launched in May, the sources said. The framework, known as the IPEF, is aimed at balancing Beijing's rising economic clout in the fast-growing region. It also includes Australia, Brunei, Fiji, India, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand and Vietnam. The framework will center on four pillars -- fair trade, supply chain resilience, infrastructure and clean energy, and tax and anti-corruption. The launch of the initiative was announced during U.S. President Joe Biden's visit to Japan in May. The Biden administration has said the IPEF will not be a traditional free trade agreement involving tariff-cutting commitments. It is meant to be an arrangement focused around the further integration of Indo-Pacific economies, such as by setting standards and rules in new areas like the digital economy, according to White House National Security Adviser Jake Sullivan. Click here to read... [11]

Critical minerals – the next front line in the China-US rivalry?

Beijing should forge alliances with “friendly” suppliers of critical minerals as the United States and its allies seek to reshape global supply chains to cut dependence on China, two Chinese resources experts say. In an article in prominent journal Science & Technology Review earlier this month, the experts said such alliances could also give China and its Belt and Road Initiative trade partners a greater say in international trade negotiations over those minerals. “The focus should be on controlling the risk of shortages of key minerals, building a global trade network for key minerals that is conducive to China’s resource security, and achieving a rational, efficient and secure allocation of key minerals,” they wrote. “At the same time, China should focus … on strengthening cooperation with other mineral resource supplying countries, form international resource alliances, and speak out together in international trade negotiations to ensure the security of supply of key minerals to China and friendly countries.” The authors – Zhao Shen from Jiangxi University of Science and Technology and Wang Peng from the Ganjiang Innovation Academy at the Chinese Academy of Sciences in Jiangxi – are based in Ganzhou, the resource-rich region home to state-owned China Rare Earth Group. The proposal is part of an assessment of US policies on supplies of essential minerals over the decades. It comes amid a US drive to strengthen its alliances with Western democracies to counter China on a range of fronts, from the military to technology. Click here to read... [12]

Chinese Banks Cut Rates to Spur Economic Growth

Banks in China cut benchmark interest rates on loans to households and businesses, a small attempt to help revive growth in an economy struggling with a property bust and Beijing’s zero-tolerance to Covid-19. The People’s Bank of China last week unexpectedly trimmed two of its policy rates in response to slowing growth and feeble demand for credit. Changes to so-called loan prime rates, which are set by a panel of banks and represent the terms offered to the most creditworthy borrowers, usually follow soon after. Economists say interest-rate cuts will probably do little to revive growth in China’s flagging economy, where would-be borrowers are on edge over the threat of new disruptions to daily life from any new Covid-19 outbreaks and gloomy about their prospects against a worsening backdrop for growth and jobs. That is sapping demand for loans. Economists expect policy makers will need to make more small cuts to interest rate this year, but Chinese officials have this year signaled a reluctance to engage in the kind of enormous stimulus response they unleashed when confronted by previous episodes of slowing growth, citing concerns including the risk of faster inflation and ballooning debt. Senior officials last month effectively dropped their goal of recording an expansion of around 5.5% for the year as a whole. Click here to read... [13]

U.S. Warns Turkish Businesses Against Work With Sanctioned Russians

The Biden administration warned Turkish businesses against working with sanctioned Russian institutions and individuals, intensifying U.S. pressure on a NATO ally that has maintained a strong relationship with Russia during its invasion of Ukraine. In a letter dated Aug. 22 to the American Chamber of Commerce in Turkey viewed by The Wall Street Journal, Deputy Secretary of the Treasury Wally Adeyemo said that Turkish companies were at risk of coming under U.S. sanctions if they did business with sanctioned Russian individuals. Mr. Adeyemo sent an identical letter to Turkey’s top business association, the Turkish Industry and Business Association, known by its acronym, TUSIAD, according to a person familiar with the correspondence. The written warnings are an escalation of U.S. efforts to get Turkish institutions to comply with the international sanctions imposed on Russia following its full-scale invasion of Ukraine in February. “Any individuals or entities providing material support to U.S.-designated persons are themselves at risk of U.S. sanctions,” Mr. Adeyemo wrote in the letter reviewed by The Wall Street Journal. Turkish banks can’t have correspondence relationships with sanctioned Russian banks while maintaining the same ties with American banks, he also said. Click here to read... [14]

Soaring inventories signal looming economic downturn

Korea's leading companies saw a 50 percent year-on-year increase in their inventories during the first half of this year, signaling the beginning of an economic recession, data showed Aug 23. According to market tracker Leaders Index's analysis of regulatory filings of the nation's 500 largest companies, 192 firms that have disclosed their inventories showed that their combined inventories rose to 147.6 trillion won ($110 billion) during the first half of this year from 98.6 trillion won a year earlier. "Considering Korea's significant reliance on trade, soaring inventories overshadow the country's economy," said Kim Dae-jong, a professor at Sejong University's School of Business. "Korean companies should try to reduce their inventories, in order to brace for the economic downturn over the next two years." Among them, 26 companies in the petrochemical industry faced the sharpest rise, due to the soaring international prices of raw materials. Their combined inventories increased 71 percent year-on-year to 28.3 trillion won from 16.5 trillion won. In the energy sector, inventories at SK Lubricants and SK Innovation rose 170 percent and 98 percent, respectively, while GS Caltex and LG Chem showed respective increases of 74 percent and 73 percent. Electronics companies experienced the largest increase, as their combined inventories rose to 50 trillion won from 31 trillion won. Click here to read... [15]

U.S., Taiwan to start formal trade talks under new initiative

The United States and Taiwan have agreed to start trade talks under a new initiative to reach agreements with "economically meaningful outcomes," with a Taiwan official saying China's "economic coercion" would also be discussed. Washington and Taipei unveiled the U.S.-Taiwan Initiative on 21st-Century Trade in June, just days after the Biden administration excluded the Chinese-claimed Island from its Asia-focused economic plan designed to counter China's growing influence. The office of the U.S. Trade Representative said the two sides had "reached consensus on the negotiating mandate" and it was expected that the first round of talks would take place early this autumn. "We plan to pursue an ambitious schedule for achieving high-standard commitments and meaningful outcomes covering the eleven trade areas in the negotiating mandate that will help build a fairer, more prosperous and resilient 21st-century economy," Deputy United States Trade Representative Sarah Bianchi said in a statement. Taiwan's top trade negotiator, John Deng, told reporters in Taipei he hoped talks could start next month, and that this could one day lead to a free trade deal the island has long sought with the United States. The negotiating mandate released along with the announcement said the United States and Taiwan had set a robust agenda for talks on issues like trade facilitation, good regulatory practices, and removing discriminatory barriers to trade. Click here to read... [16]

Strategic

PLA adopts nuclear deterrence to stop foreign intervention on Taiwan: analysts

The People’s Liberation Army (PLA) has adopted nuclear deterrence to try to stop the United States and Japan from directly intervening in a possible clash over Taiwan, but would exercise caution to avoid full-blown conflict, according to analysts. Days before Beijing kicked off unprecedented war games near Taiwan in the wake of US House Speaker Nancy Pelosi’s Taipei tour earlier this month, video footage of two vehicles carrying the two-stage liquid-fuel Dongfeng 5B intercontinental ballistic missile (ICBM) circulated on mainland social media platforms Weibo and WeChat. Videos showed other Dongfeng nuclear-capable missiles – including the road-mobile DF-27, DF-16 and DF-15B – moving through city streets. All Dongfeng-series missiles are capable of delivering nuclear warheads, while the DF-5B ICBM has a range of up to 15,000km (9,321 miles), enabling it to hit North America. “It is aimed at warning the US and its close ally Japan not to intervene in the Taiwan issue, reminding them Beijing has the most powerful weapon that could give [them] a deadly strike,” said Yue Gang, a retired PLA colonel. Yue compared it with Russia’s nuclear threats after the invasion of Ukraine which, he said, had been successful in deterring the US and Nato from directly intervening in the war. “Putin’s experience inspired Beijing that it’s a workable strategy to stop the US and Japan’s possible intervention in a future Taiwan contingency,” Yue said. Click here to read... [17]

Japan considers deploying long-range missiles to counter China: report

Japan is considering the deployment of 1,000 long-range cruise missiles to boost its counter-attack capability against China, the Yomiuri newspaper reported on Aug 21. The projectiles, which have a range of 500 to 5,500 kilometres (310 to 3,420 miles), will be deployed mainly across the Nansei Islands and Kyushu, according to the article. By doing so, Japan is seeking to close the “missile gap” with China, which has about 300 sea-based and 1,900 land-based missiles, according to the newspaper. Japan embarked on a programme a few years ago to boost its missile capabilities in the face of potential threats from China and North Korea. The latest report on the scale of a potential Japanese stockpile follows China’s recent military exercises in waters and airspace around Taiwan after US House Speaker Nancy Pelosi visited the island. Japan is also planning to upgrade and extend the capability of its domestically produced Type 12 surface-to-ship missile deployed by the Ground Self Defense Force to hit objects more than 1,000 kilometres away, Yomiuri reported. The arms, launched by ships or aircraft, would be stationed mainly around the southern Nansei islands and capable of reaching the coastal areas of North Korea and China, the Yomiuri said. Representatives from Japan’s foreign ministry did not immediately respond to a request for comment on the report. Click here to read... [18]

China’s drills to change US military assumptions

Chinese and foreign media have recently reported that the Center for Strategic and International Studies (CSIS), a heavyweight think tank in the United States, has conducted scenario planning looking toward war in the Taiwan Strait. Participants included former senior military officers, senior government military and political experts and fellows from think tanks such as the RAND Corporation and the Center for New American Security (CNAS). The scenario planning had been scheduled for a long time. It caught a lot of attention as it happened after US House Speaker Nancy Pelosi visited Taiwan. The CSIS assumed a war will break out in the Taiwan Strait in 2026. Such an estimation could be based on the prediction of the former commander of the US Pacific Command, Admiral Philip Davidson, who said in his testimony before Congress that the People’s Liberation Army (PLA) would be ready to attack Taiwan in 2027. It assumed that the attack would consist of six to eight rounds, each of them lasting three to four days. In total, it would last for three to four weeks. The scenario planning indicated that in most (but not all) scenarios, the Taiwan military would not fall completely, but Taiwan’s economy and infrastructure would be basically destroyed. The scenario planning will run until September, with a final report scheduled for December. So far, 18 of the 22 rounds of possible attacks have been carried out. Click here to read... [19]

US in denial of a hypersonic gap with China, Russia

As China and Russia make new advances in hypersonic weapons technology, the US is increasingly focused on developing counter-hypersonic technologies to address the emerging threat. In a US Department of Defense (DOD) press interview last week, US Deputy Secretary Kathleen Hicks rejected the notion that the US is falling behind in the development and fielding of hypersonic weapons. She also stated that looking at emerging hypersonic weapons technologies from China, Russia and the US as an arms race can be misleading. Hicks noted that the US has several concepts on how to defend against and when to use hypersonic weapons, emphasizing that the US focuses on developing the capabilities it needs for warfare rather than a tit-for-tat technology match against its near-peer adversaries. Hicks also stressed that the US has a different perspective on hypersonics than China and Russia. She noted that Russia has used hypersonic weapons with no noticeable effect on the course of the Ukraine war, hinting at the possibly overhyped implications of such weapons on future conflicts. Hicks also stated that the US is deeply invested in developing counter-hypersonics, emphasizing the need for countermeasures against adversaries who could deploy hypersonic capabilities. Apart from developing counter-hypersonic technologies, Hicks mentioned that the US has made promising progress in several hypersonic programs and is now formulating its employment strategy. Click here to read... [20]

US-China relations entering dangerous territory; countries may 'sleepwalk into conflict': DPM Wong

The United States and China are taking steps that will lead the world into a more dangerous place, Singapore's Deputy Prime Minister Lawrence Wong said on Aug 15, warning that the countries could inadvertently end up in a full-blown conflict. Mr Wong was speaking in an interview with Bloomberg News editor-in-chief John Micklethwait on US-China relations, after US House Speaker Nancy Pelosi visited Taiwan earlier this month. Her trip prompted an angry response from China, which conducted military drills around Taiwan and imposed trade curbs on the island. Mr Wong said the relationship between the two superpowers was already strained following recent events like the Russia-Ukraine conflict, and that Ms Pelosi's visit took tensions up "one notch". "That is the risk that can happen, that we are starting to see a series of decisions being taken by both countries that will lead us into more and more dangerous territory," he said. "You could easily have near misses or accidents happening around Taiwan Strait or on the South China Sea. It has happened before." When asked how likely it is that China could invade Taiwan, Mr Wong replied that it is "hard to say" especially as things are becoming more uncertain. The US has no official diplomatic relations with Taiwan but is bound by American law to provide it with the means to defend itself. Click here to read... [21]

North Korea Ridicules South Korea’s Move to Improve Ties as ‘Absurd Dream’

South Korean President Yoon Suk-yeol sought to shake up frothy inter-Korean ties on Aug 15 with what he called an “audacious plan.” He offered food aid and economic assistance that could modernize North Korea’s airports and hospitals—only if Pyongyang showed some commitment to denuclearize. By the end of the week, North Korea gave its answer: “We don’t like Yoon Suk-yeol himself.” The biting remark came from Kim Yo Jong, the sister of the country’s leader and regime mouthpiece, via a Aug 19 news statement published in North Korean state media. It was titled, “Don’t have an absurd dream.” The conservative Mr. Yoon took office in May and promised a firmer hand with Pyongyang’s perceived misdeeds. The South Korean leader’s latest proposal represents the “height of absurdity,” Ms. Kim said. “Dogs will always bark, as a pup or an adult, as the same goes for the one with the title of president,” Ms. Kim said. South Korean President Yoon Suk-yeol has taken a harder line against North Korea than his left-leaning predecessor. Mr. Yoon is childish to think he can barter economic cooperation for nuclear weapons, Ms. Kim added, pointing to similar failed offers by his South Korean predecessors and the U.S. Click here to read... [22]

Israel and Turkey to Restore Ties After Yearslong Tension Over Palestinians

Israel and Turkey said Aug 17 they had agreed to restore full diplomatic ties by reappointing ambassadors to Ankara and Tel Aviv, after a four-year hiatus, in the latest demonstration of warming relations between the former rivals. Turkey recalled its ambassador to Israel in 2018 amid a deadly Israeli crackdown on demonstrators at the Israel-Gaza border protesting the U.S. decision to move its embassy to Jerusalem from Tel Aviv. Israel said the demonstrations threatened its security and withdrew its ambassador from Ankara. “The resumption of relations with Türkiye is an important asset for regional stability and very important economic news for the citizens of Israel,” said Israeli Prime Minister Yair Lapid. The move comes after a year of improving relations between the two sides, including a visit by Israeli President Isaac Herzog to Ankara in March, followed by trips by their foreign ministers to both countries. “Good neighborly relations and the spirit of partnership in the Middle East are important for us all. Members of all faiths—Muslims, Jews and Christians—can and must live together in peace,” Mr. Herzog tweeted following the announcement. It also comes amid a broad effort by Turkish President Recep Tayyip Erdogan to normalize relations with a range of former rivals across the Middle East. Click here to read... [23]

5 Arab states gather in Egypt to discuss all-round cooperation

The leaders of Egypt, the United Arab Emirates (UAE), Jordan, Bahrain and Iraq met on Aug 22 over means to develop their all-round relations, just a day before a five-way summit in New Alamein, a coastal city in northwestern Egypt. During the meeting, Egyptian President Abdel-Fattah al-Sisi expressed his country's appreciation for the close historical bonds that united Arab countries, Presidential Spokesman Bassam Rady said in a statement. Sisi and the other four Arab leaders - UAE President Mohammed bin Zayed Al Nahyan, Jordanian King Abdullah II, Bahraini King Hamad bin Isa Al Khalifa and Iraqi Prime Minister Mustafa al-Kadhimi - also exchanged views on enhancing relations and cooperation in all available areas among the five countries, according to the statement. The UAE president arrived in New Alamein on Aug 21, and joined Sisi in welcoming the other three leaders at El Alamein International Airport earlier on Aug 22. The five-way Arab summit on Aug 23 is meant to intensify efforts to reinforce economic integration among Egypt, the UAE, Jordan, Bahrain and Iraq. Click here to read... [24]

Iran yet to receive U.S. response to EU's nuke deal revival proposals: spokesman

Iran has not yet received any response from the United States concerning the European Union (EU)'s recent proposals on the revival of a 2015 nuclear deal, the Iranian Foreign Ministry spokesman said on Aug 22. Making the remarks at a weekly press conference, Nasser Kanaani said Iran had submitted its response in time to the EU proposals put forward in the latest round of the Vienna nuclear talks in early August, according to semi-official Mehr news agency. Iran has always taken part in the nuclear negotiations "seriously, constructively and responsibly," the spokesman said, adding his country has shown flexibility for reaching a deal. The nuclear talks have made good progress so far, Kanaani said, stressing the remaining issues, though few in number, are very important and need to be agreed upon. The Iranian spokesman said Tehran sought to reach an agreement and the country's negotiators had taken part in the talks seriously with the goal of defending the legitimate interests of the Iranian government and people. Kanaani blamed the U.S. for the status quo of the nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA), saying Washington is accountable for the failure to implement the agreement. The nuclear talks will move to the next stage if the U.S. proves in practice that it has the political will to reach an agreement, in addition to making promises and comments, he added. Click here to read... [25]

UAE, upgrading ties with Iran, says envoy to return to Tehran within days

The United Arab Emirates said on Aug 21 that its ambassador to Iran, Saif Mohammed Al Zaabi, would return to Tehran "in coming days", more than six years after the Gulf Arab state downgraded ties with the Islamic Republic. The move is in line with UAE efforts to strengthen relations with Iran "to achieve the common interests of the two countries and the wider region", the foreign ministry said in a statement. The UAE downgraded its ties with Iran after Saudi Arabia severed its own relations with Tehran in January 2016. The move followed the storming of the Saudi embassy in Tehran by Iranian protesters after Riyadh executed a prominent Shi'ite cleric. After years of animosity on different sides of geo-political rivalries, the UAE started re-engaging with Tehran in 2019 following attacks in Gulf waters and on Saudi energy sites amid heightened tensions after Washington quit global powers' nuclear pact with Iran. Last year Sunni Muslim powerhouse Saudi Arabia moved to improve ties with foe Shi'ite Muslim Iran with five rounds of direct talks so far. This has come at a time when Gulf Arab states are closely eyeing efforts to revive the 2015 nuclear pact, which they deem flawed for not addressing Iran's missiles programme and behaviour. Click here to read... [26]

Indonesia leader says Putin and Xi to attend G20 summit: report

Russian President Vladimir Putin and his Chinese counterpart Xi Jinping will attend the upcoming Group of 20 summit, the leader of host nation Indonesia said in an interview published Aug 19. The pair's attendance would set the stage for possible talks with U.S. President Joe Biden at a time when Washington is at odds with both of the rival powers, particularly over crises in Ukraine and Taiwan. It has been unclear whether Putin and Xi would turn up to the November talks on the Indonesian resort island of Bali. Moscow is isolated after its invasion of Ukraine, while the Chinese leader is limiting foreign trips because of Covid-19. But President Joko Widodo, in an interview with Bloomberg, said both leaders would attend the G20 summit in person. "Xi Jinping will come. President Putin has also told me he will come," Widodo said, according to the report. Kremlin officials said in June that Putin had accepted Widodo's invitation to the summit, and would attend so long as the Covid-19 pandemic allowed him to. Biden is expected to travel to the summit but the White House has yet to confirm details, including whether he would meet separately in Bali with Xi. The two leaders agreed during a phone call last month to arrange their first in-person meeting since Biden took office, but no time or place was announced. Click here to read... [27]

Putin and Xi may meet sooner than expected

Chinese leader Xi Jinping could travel to Central Asia in September to meet with Russian President Vladimir Putin on the sidelines of the Shanghai Cooperation Organization (SCO) summit, the Wall Street Journal reported on Aug 19, citing sources familiar with the matter. Xi’s office indicated this week that he could personally attend the summit, due to take place in the Uzbek city of Samarkand on September 15 and 16, the sources explained. Officials have also begun preparing possible bilateral meetings with Putin, as well as the leaders of Pakistan, India, and Turkey, who are also expected to arrive. While the Kremlin confirmed back in July that Putin would be taking part in the SCO summit, it has not yet clarified whether he will travel to Samarkand or participate by video link. The decision to include the trip in Xi’s schedule was allegedly taken after Beijing failed to dissuade US House Speaker Nancy Pelosi from visiting Taiwan earlier this month, some of the people who spoke to WSJ claimed. Since the visit was seen by Beijing as a sign Western pressure on China, a trip to Central Asia would underscore the Chinese leader’s intention to counter it by building stronger relationships with countries which are not close allies of the US, they explained. This week, Putin denounced Pelosi’s trip as a “brazen demonstration of disrespect towards another country’s sovereignty.” Click here to read... [28]

Europe's drought exposes ancient stones, World War II ships as waters fall

Weeks of baking drought across Europe have seen water levels in rivers and lakes fall to levels few can remember, exposing long-submerged treasures - and some unwanted hazards. In Spain, suffering its worst drought in decades, archaeologists have been delighted by the emergence of a prehistoric stone circle dubbed the "Spanish Stonehenge" that is usually covered by the waters of a dam. Officially known as the Dolmen of Guadalperal, the stone circle currently sits fully exposed in one corner of the Valdecanas reservoir, in the central province of Caceres, where authorities say the water level has dropped to 28 per cent of capacity. It was discovered by German archaeologist Hugo Obermaier in 1926, but the area was flooded in 1963 in a rural development project under Francisco Franco's dictatorship. Since then it has only become fully visible four times. Memories of past droughts have also been rekindled in Germany by the reappearance of so-called "hunger stones" along the River Rhine. Many such stones have become visible along the banks of Germany's largest river in recent weeks. Bearing dates and people's initials, their re-emergence is seen by some as a warning and reminder of the hardships people faced during former droughts. Dates visible on stones seen in Worms, south of Frankfurt, and Rheindorf, near Leverkusen, included 1947, 1959, 2003 and 2018. Click here to read... [29]

Afghan women still facing difficulties, one year on

Many Afghan women have fled abroad since the Taliban took control of the whole country on Aug. 15 last year and restricted women's right to work and get education under their strict interpretation of Islamic law. But even after seeking refuge in neighboring countries, the women's plight still continues. Furuzan, a 47-year-old mother who now lives in Istanbul, does nothing but cry every day worrying about her daughter, who is still in Afghanistan. Her daughter graduated from high school, but her hope of going to university was dashed after the Taliban takeover. Furuzan herself is also struggling in Turkey, as her Turkish is poor and she cannot find a job. "The streets were full of violence after the Taliban took control," Furuzan said. A year ago, she saw Taliban fighters storm into private houses, take women who had helped other women's social advancement out of their houses and lash them in the back on the street. Furuzan, who had taught Dari literature to female students at high school, feared for her own safety. Furuzan wore a burqa, a full-body veiled covering, for the first time in her life, fearing that she might be killed if found. She fled to neighboring Iran secretly with a smuggler relative and later reached Turkey. Click here to read... [30]

Yoon vows to find solution to Korean wartime labor issue

South Korean President Yoon Suk-yeol on Aug. 17 pledged to find an equitable solution to the thorny issue of compensation for wartime Korean laborers that will be agreeable to all parties, including Japan. “I am giving good consideration to an idea that will not infringe on Japan’s sovereignty, something that the country is concerned about, and that will allow the creditors (plaintiffs) to receive damages," Yoon said at a news conference held at the presidential office on the 100th day since becoming president. "I will obtain (such a solution) reasonably.” In 2018, the South Korean Supreme Court ordered Japanese companies for which Korean laborers worked during wartime to pay damages to the plaintiffs. The procedures to sell the seized assets of these Japanese companies to pay the damages could be completed soon, leading to a concern that the relationship between the two countries could further deteriorate. On the issue of the wartime Korean laborers, Yoon said at the news conference, “When the two countries strengthen their future-oriented and cooperative relationship, they will be able to solve the issue amicably through concessions and understanding.” He also referred to the recent security environment becoming even more strained and the need to cooperate on economic issues, saying, “(Japan and South Korea) need close cooperation for the future.” Click here to read... [31]

Health

New Ebola case reported in DR Congo, linked to previous outbreak

The Democratic Republic of the Congo (DRC) on Aug 22 confirmed a new case of the Ebola virus in the northeastern North Kivu Province, the health ministry said in a statement. The African country registered a new Ebola case on Aug. 17 in the province's Beni health zone in a 46-year-old female who was admitted to the Beni General Hospital in late July and died on Aug. 15 in the intensive care unit, the ministry said. Sequencing tests suggest the case is genetically linked to the large outbreak in 2018-2020 that was centered in North Kivu and Ituri provinces, it said. During the large outbreak, 3,470 people were infected and 2,287 were killed. "With the experience acquired in the management of the Ebola virus disease and with the availability of vaccines and therapeutic molecules, the teams of the provincial health division and the Beni health zone are already at work on the ground to carry out response activities," the ministry said. On July 4, the DRC declared an end to the latest Ebola outbreak that erupted less than three months ago in Mbandaka, the capital of the northwestern Equateur Province. There were four confirmed cases and one probable case, all of whom died, in the outbreak. It was the third outbreak in the province since 2018 and the country's 14th overall. Click here to read... [32]

Victims of virus, heatstroke overwhelming rescue workers

Rescue workers in Tokyo say they are on the brink of collapse as they struggle to keep pace with the emergency calls made during the seventh wave of COVID-19 cases and the scorching heat. On some days in the capital in July, about 95 percent of the ambulances in operation had all been dispatched mainly to transport infected patients or heatstroke victims to hospitals for medical care. “There are still days when I am unable to return to my fire station between when I arrive there in the morning for work and well past midnight,” said one rescue worker of the Tokyo Fire Department. And once the ambulance arrives at a hospital, it is inevitably called to its next location to pick up an emergency patient. “I have to work 20 hours straight without time even for a short nap,” the rescue worker said. For meals, the worker stops at a convenience store in-between emergency runs. “If I need to spend time at the hospital to pass on information about the patient or to disinfect medical equipment and supplies, I have no time to eat,” the worker said. Yuzo Fujino, a high-ranking official at the Tokyo Fire Department’s general communications center in the Otemachi district, said the green lights showing that an emergency call for an ambulance has been made rarely turn off these days. Click here to read... [33]