Global Developments and Analysis: Weekly Monitor (13-19 November 2023)

Economic

China receives U.S. equipment to make advanced chips despite new rules--report

Chinese companies are buying up U.S. chip-making equipment to make advanced semiconductors, despite a raft of new export curbs aimed at thwarting advances in the country’s semiconductor industry, a report said on Nov 14. The 741-page annual report, released by the U.S.-China Economic and Security Review Commission, takes aim at the Biden administration’s Oct. 2022 export curbs, which seek to bar Chinese chipmakers from getting U.S. chip-making tools if they would be used to manufacture advanced chips at the 14 nanometre node or below. With the Commerce Department using the 14 nanometre restriction limit, “importers are often able to purchase the equipment if they claim it is being used on an older production line, and with limited capacity for end-use inspections, it is difficult to verify the equipment is not being used to produce more advanced chips,” the report stated. The finding comes as the United States scrambles to figure out how Chinese telecoms giant Huawei was able to produce an advanced 7 nanometre chip to power its Mate 60 Pro smartphone at China’s top chipmaker SMIC, despite the export curbs announced last year. Huawei and SMIC were also added to a trade restriction list in 2019 and 2020, which in theory bars U.S. suppliers from shipping certain technology to the companies. Click here to read… [2]

New semiconductor factories are rising in US, but billions in Chips Act money has yet to flow

On August 9, 2022, surrounded by a cheerful crowd of tech executives, union presidents and political leaders from both sides of the aisle, US President Joe Biden signed the Chips and Science Act, also dubbed the China competition act, and declared: “Today, America is delivering.” The White House said the legislation, which offers US$52 billion in federal incentives to support the immediate need to onshore advanced chip manufacturing, will help American companies “win the race for the 21st century” against China, which has significantly closed the gap in military and tech capabilities. But more than a year after the bill’s passage, no money has been distributed for domestic chip production and research incentives. China, in the meantime, has demonstrated the ability to get around the Biden administration’s restrictions on the export of semiconductor technology from the US and its allies. While industry experts have expressed frustration over the bureaucratic and technical hurdles hampering a rapid dispersal of funds, there is also concern that the usual timelines for government action, and the question of who should be the largest recipients, may provide Beijing a time advantage in its tech war with the US. Click here to read… [3]

Japanese toolmakers scramble to combat dual-use export risk

Japanese suppliers of advanced machine tools such as Fanuc and DMG Mori are working to implement safeguards to counter the risk of sensitive technology being used for military purposes, even as the companies are limited in how much they can do on their own. A recent Nikkei investigation uncovered evidence that China's main research institution in charge of developing nuclear weapons used a state-of-the-art machine tool manufactured at a Germany subsidiary of Japanese supplier DMG Mori. DMG Mori suspects that the machine was resold illegally after being exported in compliance with laws and regulation, according to a company representative. The machine tool in question appeared to have been manufactured in around 2010 or 2011. After the buyer went through what DMG Mori described as an "uncompromising" screening process, German authorities approved the equipment for export, according to the company, which said it did not know how the tool ended up at the Chinese research institution. Since 2006, DMG Mori has installed sensors in its products to detect improper relocations of the machinery. Through the application of internet of things technology, the company is able to track signs of suspicious movements or secondary sales. If necessary, DMG Mori is able to shut down the device remotely. Click here to read… [4]

Japan’s economy sinks into contraction as spending, investment decline

Japan’s economy slipped into a contraction in the third quarter, decreasing at an annual pace of 2.1% as consumption and investments shrank, the government reported Nov 15. Real gross domestic product, which measures the total value of a nation’s products and services, fell 0.5% in the July-September period for the world’s third largest economy, the Cabinet Office said. That would produce a 2.1% drop if the quarter’s performance continued for a full 12 months. The downturn came after the economy grew a revised 3.7% in the first quarter and a revised 4.5% in the second quarter on an annualized basis, according to the government figures. The third quarter’s performance was far worse than what had been expected, according to the financial services company ING, which had forecast an annual contraction of 0.5%. “Most of the miss in the consensus forecast came from weaker-than-expected domestic demand items, such as consumer spending, business investment and inventory accumulation,” Robert Carnell, ING’s head of research for the Asia-Pacific area, said in a report. Private consumption shrank an annualized 0.2% during the quarter, while corporate investment decreased 2.5%. Economic activity in the previous two quarters got a boost from recovering exports and inbound tourism. Click here to read… [5]

2006 proposal aired again to give momentum to ties with China

The leaders of Japan and China drew on the past to move fraught bilateral relations forward during talks here aimed at leveraging the two countries’ common interests. Meeting Nov. 16, Prime Minister Fumio Kishida and Chinese President Xi Jinping agreed on the importance of pursuing a “strategic relationship of mutual benefit.” That strategy, first mooted in October 2006 during a meeting between the late Prime Minister Shinzo Abe and Chinese President Hu Jintao, was later incorporated into the Japan-China joint statement of 2008. In a nutshell, it recognizes the vast difference in the political structure of the two nations, but seeks to find benefits for the two sides, mainly in the economic sphere. Abe also worked to improve economic ties during his second stint as prime minister in the face of a territorial dispute over the Senkaku Islands in the East China Sea and Abe’s own visit to Tokyo’s war-related Yasukuni Shrine, where 14 Class-A war criminals are memorialized. Xi raised the strategy during his talks with Kishida, noting that economic benefits were already deeply integrated between the two nations. Afterward, Kishida told reporters that reconfirming the importance of the strategic relationship seeking mutual benefits “was significant for future development” of the bilateral relationship. Click here to read… [6]

Biden eases sanctions to get China’s help fighting drug crisis

US President Joe Biden’s administration has dropped trade restrictions on the Chinese government’s forensic science institute as part of a push to persuade Beijing to help block the trafficking of fentanyl and its constituent chemicals into the US. The institute’s removal from the blacklist was confirmed on Nov 16 in a notice posted by multiple US agencies to the Federal Register. The move came one day after Biden held a long-awaited meeting with Chinese President Xi Jinping in a suburb of San Francisco, where the two leaders agreed to resume cooperation between their governments on fighting the trafficking of synthetic opioids and other drugs. Washington put the Chinese Ministry of Public Security’s Institute of Forensic Science on its sanctions list in 2020 to punish Beijing for alleged abuses against China’s Uighur ethnic minority. The penalty essentially banned US suppliers from exporting most goods to the institute. China’s then-ambassador to the US, Qin Gang, later criticized the decision, saying Washington was asking for help to address America’s drug crisis while sanctioning an entity that was essential to fighting fentanyl trafficking. US leaders have repeatedly blamed China for contributing to the US opioid crisis, which resulted in nearly 110,000 overdose deaths in 2022 alone. Click here to read… [7]

US, EU Seek to Extend Steel Truce Amid Stalemate on Longer Fix

The US and European Union are haggling over terms to extend a truce on steel and aluminium trade to avoid the possible return of billions of dollars in tariffs on transatlantic commerce, as talks on a more lasting agreement this year have stalled. The Biden administration has proposed prolonging the status quo until the end of 2025 — well clear of the US presidential elections in November next year — to hammer out a permanent deal. The EU wants a commitment to fixing what it argues is an imbalance in the current arrangement before agreeing to an extension, according to people familiar with the matter. The debate comes as talks on the so-called Global Arrangement on Sustainable Steel and Aluminium, or GSA, reached a stalemate, said the people, who spoke on condition of anonymity to discuss private talks. The differences remain significant after last month’s failure to conclude a political agreement at a summit in Washington, and officials now are running out of track to reach a comprehensive deal before a year-end deadline. The GSA was meant to reflect a renewal in EU-US trade relations after four turbulent years during the Trump administration. Instead, it has become symptomatic of a growing list of unresolved irritants and grievances on economic matters as the US heads into another election cycle in which Donald Trump is leading in polls to return to the White House. Click here to read… [8]

Thailand Takes $28 Billion Malacca Strait Bypass Plan to US

Thailand is pitching a multibillion-dollar project that will significantly cut shipping times between the Indian and Pacific oceans by bypassing the Malacca Strait — one of the world’s busiest sea lanes. Prime Minister Srettha Thavisin told investors in San Francisco on Nov 13 that the project can cut travel time by an average of four days and lower shipping costs by 15%. With traffic volumes projected to exceed the Malacca Strait’s capacity by 2030, the new project will ensure seamless flow of goods, he said. The so-called Landbridge project will cost about 1 trillion baht ($28 billion), with seaports to be built on either side of the country’s southern peninsula and linked by highway and rail networks, according to the government. The 100-kilometer (62-mile) connection would replace a decades-old Thai proposal to dredge a canal through the Kra Isthmus. The Malacca Strait — a narrow sea lane between Malaysia and Singapore — is the shortest sea route linking the Asia-Pacific region to India and the Middle East. About a quarter of the world’s traded goods pass through the strait and it will only become busier, pushing up shipping costs, Srettha said, noting that there are more than 60 maritime accidents a year on average in the passage. Click here to read… [9]

Nepal Bans TikTok, Saying It Disturbs ‘Social Harmony’

Nepal is banning TikTok over concerns that the video platform is “disturbing social harmony,” joining a growing list of countries that have partially or completely banned the Chinese-owned app. Nepal’s cabinet, led by Prime Minister Pushpa Kamal Dahal, decided to ban TikTok on Nov 13, said Rekha Sharma, the minister of communication and information technology. “Through social-media platform TikTok, there’s a continuous dissemination of content disturbing our social harmony and family structures,” said Sharma. Nepal has faced increasing problems with TikTok, including cases of cyberbullying, said Netra Prasad Subedi, spokesman for the IT ministry. Over the past four years, more than 1,600 cybercrime cases on TikTok have been reported to authorities, said Kuber Kadayat, a Nepal police spokesman. He said most of the complaints were related to sharing nude photos or financial extortion. Last week, the government said it would require social-media companies running platforms used in Nepal to set up liaison offices in the country. Kadayat said social-media companies have been slow to respond to Nepal’s authorities when they request data or send a complaint to them. “Victims are having to wait a long time to get justice,” he said. TikTok and Beijing-based ByteDance, which owns the video-sharing app, didn’t immediately respond to requests for comment. Click here to read… [10]

Russia ramps up trade with Africa and Asia – customs data

Russia’s economic cooperation with Asian and African countries has continued to grow while trade with the European Union has declined, according to the latest report by the Federal Customs Service (FCS). Data released this week showed exports to Asia jumped to $226.6 billion in the first nine months of the year, up by 10% from the same period of 2022. Exports to Africa surged by over 50% to $15.6 billion in January-September, compared with $10.1 billion one year ago. Russian imports from the two regions also increased, amounting to $140 billion in value terms in the case of Asia, up by 40% on 2022. Moscow also boosted purchases from Africa by 10% to $2.5 billion. Asian countries’ share of Russia’s overall foreign trade now accounts for about 70%, according to FCS data. In contrast, Russian trade with the EU has steadily declined. Exports to the bloc plunged from $216.7 billion in January-September 2022 to just $65.3 billion in the same period of this year. Imports from the EU were down by around 10% to $59.2 billion, data showed. “There has been a radical change in cargo turnover, the share and weight of countries in our trade. If previously EU countries accounted for 50% or more in pre-crisis, pre-Covid times, now it is up to 16%,” the acting head of the FCS, Ruslan Davydov, recently said. Click here to read… [11]

Nations convene in Kenya to hammer out treaty on plastic pollution

International delegates have convened in Kenya in the hopes of making further progress towards a landmark treaty to fight global plastic pollution. Addressing the first day of the talks in the capital, Nairobi, on Nov 13, Kenyan President William Ruto said that time is running out to reach a deal before the end of 2023, a deadline set in March of last year.“I urge all the negotiators to recall that 2024 is only six weeks away and [there] are only two other meetings to go,” Ruto said. The meeting is taking place at the headquarters of the UN Environment Programme (UNEP) as leaders try to address the scourge of pollution resulting from more than 400 million metric tonnes of plastic waste produced each year. The UNEP says less than 10 percent of plastic waste is recycled, and the International Union for Conservation of Nature said at least 14 million metric tonnes of it makes its way into the world’s oceans. Progress has been slow at previous summits, and delegates in Nairobi will have to decide between a wider focus on the production and life cycle of plastic or a more limited emphasis on waste management. Countries such as Kenya have advocated for a firmer and more binding agreement where as the powerful plastics industry and petrochemical suppliers such as Saudi Arabia have pushed for a more limited approach. Click here to read… [12]

Ransomware attack on China’s biggest bank disrupts Treasury market trades, reports say

A financial services business of China’s biggest bank says it was it by a ransomware attack that reportedly disrupted trading in the U.S. Treasury market. Industrial and Commercial Bank of China Financial Services handles trades and other services for financial institutions. A statement on its website seen Nov 10 said the ransomware attack this week disrupted some of its systems but that it had disconnected parts of the affected systems to limit the impact from the attack. The company, which is based in New York, said it was investigating and had reported the problem to law enforcement. All Treasury trades executed Nov 08 and repo financing trades on Nov 09 were cleared, it said. It said ICBC’s banking, email and other systems were not affected. The company gave no further details but reports said the attack was by LockBit, a Russian-speaking ransomware syndicate that does not target former Soviet countries. It is one of the most efficient ransomware variants around, according to the cyber security firm Emsisoft. Active since September 2019, it has attacked thousands of organizations. Click here to read… [13]

Sri Lanka's election-year budget straddles line between IMF and voters

Sri Lankan President Ranil Wickremesinghe has laid out the bankrupt country's budget for 2024, drawing mixed reviews as he strives to meet the demands of an International Monetary Fund bailout program without sowing further public resentment ahead of expected elections. Some observers applauded the proposals, not only for what they included but also what they did not -- new taxes on top of hikes already announced. But others expressed concern that the budget seemed designed to placate certain voters, and only temporarily, while not doing enough to help the struggling masses. Wickremesinghe unveiled the budget on Nov 13, announcing his government's plan to increase tax revenue to 3.82 trillion rupees ($11.67 billion), up from this year's estimated 2.6 trillion rupees. Two weeks ago, the government had announced a value-added tax (VAT) increase to 18% from 15%, effective from January, as part of efforts to meet targets set by the IMF. The fiscal deficit target is estimated at 2.85 trillion rupees, or 9.1% of gross domestic product, higher than the revised 8.5% of GDP for the current year. "We are aware of the difficulties faced by the people of this country. The path toward a stable and developed economy is not beautiful. It is difficult, hard and challenging," Wickremesinghe said in his budget speech, following a recent uptick in protests demanding salary hikes to overcome high living costs. Click here to read… [14]

U.S. and Indonesia upgrade ties with eye on critical minerals pact

U.S. President Joe Biden and his Indonesian counterpart, Joko "Jokowi" Widodo, met at the White House on Nov 13, agreeing to elevate ties and cooperate in fields ranging from climate and energy to digital connectivity and defence. A White House fact sheet said the two leaders upgraded the relationship to a "comprehensive strategic partnership," describing it as an "unprecedented level of cooperation, built on shared values of democracy and pluralism." This is similar to a move the U.S. made with Vietnam in September. The Biden-Widodo meeting kicked off a busy week for diplomacy, with both due to attend the Asia-Pacific Economic Cooperation leaders' gathering in San Francisco from Nov 15 to Nov 17. Ahead of the bilateral talks, much of the focus was on resources, with senior U.S. officials telling reporters that Biden and Widodo would kick off preliminary discussions toward a critical minerals agreement. The officials cautioned, however, that the discussions would only be "the very first phase" and that time will be needed before negotiating a limited free trade agreement -- one that would open the gates for Indonesian entities to indirectly benefit from American subsidies. "As a country that is rich with critical minerals and green energy potential, Indonesia can become an important partner for the U.S.," Widodo said in a speech at Georgetown University in Washington, D.C., ahead of his meeting with Biden. Click here to read… [15]

Bangladesh garment industry wage fight shakes core economic pillar

A prolonged wage dispute in Bangladesh's garment industry risks damaging a critical economic engine while adding to political turmoil that has rocked the country in recent weeks. After major protests and violent clashes with police, the government last week mandated a 56% hike in the monthly minimum wage for workers making ready-made garments, to 12,500 taka or about $113. But workers said the increase was "paltry" and not enough to cope with soaring food prices and record inflation. Almost all unions, collectively representing 4 million people in the sector, rejected the hike and have continued to boycott shifts and block roads in Gazipur and Ashulia, the two main industrial belts on the outskirts of Dhaka. The protests, widely considered the worst wage-related unrest in a decade, have coincided with countrywide blockades by the main political opposition Bangladesh Nationalist Party (BNP). They are demanding that Prime Minister Sheikh Hasina resign immediately so that the next election, due in January, can be held under a neutral caretaker government. Not only has Hasina steadfastly rejected that demand, she has sought to tie the two protest strands together, blaming the garment strikes on the BNP and warning of a stern response. Click here to read… [16]

Strategic

The Era of Total U.S. Submarine Dominance Over China Is Ending

For decades, the U.S. hasn’t had to worry much about China’s submarines. They were noisy and easy to track. The Chinese military, meanwhile, struggled to detect America’s ultraquiet submarines. Now, China is narrowing one of the biggest gaps separating the U.S. and Chinese militaries as it makes advances in its submarine technology and undersea detection capabilities, with major implications for American military planning for a potential conflict over Taiwan. Early this year, China put to sea a nuclear-powered attack submarine with a pump-jet propulsion system instead of a propeller, satellite imagery showed. It was the first time noise-reducing technology used on the latest American submarines had been seen on a Chinese submarine. A few months earlier, satellite images of China’s manufacturing base for nuclear-powered submarines in the north-eastern city of Huludao showed hull sections laid out in the complex that were larger than the hull of any existing Chinese submarine. A second modern construction hall at the plant was finished in 2021, indicating plans to boost output. China is working to modernize its ballistic missile submarine fleet after decades of falling behind the U.S. as it looks to strengthen its nuclear deterrence capabilities. WSJ compares the submarine fleets and the technology of their missiles. At the same time, the western Pacific is becoming more treacherous for U.S. submarines. Click here to read… [17]

U.S. and China agree to resume military dialogue in four-hour summit

In their first face-to-face exchange in a year, U.S. President Joe Biden and Chinese President Xi Jinping met for roughly four hours on Nov 15, agreeing to establish dialogue mechanisms for anti-drug cooperation, military-to-military exchanges and artificial intelligence. "He and I agreed that each of us can pick up the phone and call directly and we would be heard immediately," Biden told reporters after the meeting. The reconciliation ends a 15-month deep freeze in relations that began after the visit to Taiwan by former U.S. House Speaker Nancy Pelosi, after which China halted all channels of exchange. But more broadly, it attempts to alter the escalatory nature of the relationship, which stems on the U.S. side from a fear of being replaced, and on the Chinese side from the frustration of feeling constricted. The morning started with the two leaders driving roughly 45 kilometers south from San Francisco to the Filoli estate, a historic country house surrounded by lavish gardens and a 654-acre (265-hectare) wooded setting. Biden stood outside the door as Xi's limousine arrived. They shook with both hands while smiling, before walking into the house. Biden and Xi have known each other for 12 years, having met, dined and travelled together on multiple occasions. They both reflected those earlier experiences in their opening statements. Click here to read… [18]

Kishida and Xi agree to seek ways to end Fukushima wastewater spat

In their first meeting in a year, the leaders of Japan and China on Nov 16 agreed to find a solution to resolve their differences over the release of waste water from the crippled Fukushima Daiichi nuclear plant. In San Francisco, Japanese Prime Minister Fumio Kishida stressed the need for "a calm and scientific approach" to the discharge of treated water. He also called for the immediate end of Chinese import restrictions on Japanese seafood, according to a Japanese readout of his meeting with Chinese President Xi Jinping. "Both sides acknowledged the differences in their positions and agreed to seek ways to solve these issues through constructive discussions and dialogue," the summary said. A Chinese readout said that the "two parties agreed to find proper solutions for the Fukushima issue through negotiations." Xi urged Japan to handle the discharge in a responsible and constructive manner, saying it is a matter of global public interest. While neither side changed their position on the contentious issue, the fact they agreed to "seek ways" for a solution signalled a change in the tone of the relationship, which has suffered many setbacks in recent years. "As neighbours and as major countries leading the region and the international community, Japan and China have a responsibility to coexist and prosper, contributing to world peace and prosperity," Kishida said in his opening remarks. Click here to read… [19]

‘Halt the fighting’: China and Arab nations renew call for ceasefire in Gaza

China renewed its call for an immediate ceasefire in Gaza and for Israel to stop its “collective punishment” of people in the war zone as foreign ministers from a group of Arab and Muslim-majority countries met in Beijing on a peace mission on Nov 20. “It is imperative that the relevant resolutions of the United Nations Security Council and the General Assembly be fully implemented and that an immediate ceasefire be put in place to halt the fighting,” Chinese Foreign Minister Wang Yi said, adding it was not a diplomatic term, but “a matter of life or death for the Gaza people”. Wang also urged Israel to open a humanitarian corridor “as soon as possible to prevent a wider humanitarian disaster”. Israel has described its military actions in Gaza as self-defence following an attack by Hamas last month in which more than 1,200 people were killed and roughly 240 taken hostage – some of whom have since been found dead. “China opposes any forced displacement and forcible transfer targeting Palestinian civilians. Israel should stop its collective punishment of the people of Gaza,” the foreign ministry quoted Wang as saying. Wang made the call during talks with his counterparts from Palestine, Saudi Arabia, Egypt, Jordan, and Indonesia. Hissein Brahim Taha, secretary general of the Organisation of Islamic Cooperation, is also part of the delegation that is in the Chinese capital on the two-day mission. Click here to read… [20]

Netanyahu Says War Will Continue as Gaza Hostage Deal Nears

Prime Minister Benjamin Netanyahu told the Israeli Cabinet that the war to eliminate Hamas wouldn’t let up after a cease-fire, even as he signalled that a deal was near to free hostages in Gaza in return for a temporary pause in fighting. “There is nonsense out there as if after the pause in fighting, we will stop the war,” Netanyahu said at the start of a meeting where officials set to vote on a hostage deal, according to his office. “We are at war and we will continue it until we achieve all the objectives. We will eliminate Hamas, return all the hostages and guarantee that there will be no element in Gaza that threatens Israel.” The remarks were the clearest signal yet that even as Hamas and Israel appeared to be on the cusp of an agreement to release dozens of hostages, the Israeli government wouldn’t accede to growing international pressure for a longer-term cease-fire to the war that began Oct. 7. Hamas political leader Ismail Haniyeh earlier indicated the hostage negotiations were moving forward, following similar comments from US President Joe Biden.“The movement delivered its response to the brothers in Qatar and the mediators, and we are close to reaching a truce agreement,” Haniyeh, who’s based in Qatar’s capital Doha, said in a statement on Telegram. Click here to read… [21]

China's property crisis is stirring protests across the country

China's property sector, which accounts for more than a quarter of Asia's largest economy, has fallen into an unprecedented crisis. Investment and property sales by volume last month were both 11% lower than a year earlier and home prices in most cities fell, too. Two of the country's largest developers, China Evergrande Group and Country Garden Holdings, have defaulted on their borrowings, as have many smaller peers. Suppliers, contractors and construction workers have gone unpaid for months while millions of homebuyers who ploughed their savings into purchases in planned but unfinished projects have been left to twist in the wind. The result of this tumult has been a steep rise in protests. Despite the efforts of the Chinese Communist Party (CCP), Freedom House's China Dissent Monitor project tallied 1,777 demonstrations linked to the property sector between June 2022 and October 2023. Two-thirds of these events involved homebuyers and homeowners raising issues like project delays, contract violations, alleged fraud and shoddy workmanship. Most of the remaining demonstrations were initiated by construction workers demanding unpaid wages. Most of these events included dozens of participants, who typically held up banners or chanted at a strategic location, such as the entrance to a company sales office or the office gates of the local government. Click here to read… [22]

Thailand drops joint patrols with Chinese police after public backlash

Thailand rolled back on Nov 13 plans of joint patrols with Chinese police in popular tourist spots after public backlash. Tourism officials on Nov 12 floated the idea of having Chinese and Thai police patrol much-visited areas to build confidence among tourists, including Chinese nationals. The plan, however, sparked uproar online, drawing criticism that it compromised national sovereignty, and a rebuke from the country's police chief. “There are many alternative ways to build confidence for tourists in Thailand ... but we will not have joint patrols,” Tourism Minister Sudawan Wangsuphakijkosol told reporters on Nov 14. “The Thai police force is already adequate and are working hard to restore confidence,” Sudawan said. Thai authorities have rushed to tighten security after last month's shooting spree at a luxury mall in Bangkok in which two people, including one Chinese national, were killed, fanned safety concerns. Restoring confidence is critical for Thailand's tourism industry, especially among Chinese visitors. They accounted for 11 million out of record 39.9 million foreign tourist arrivals in Thailand in 2019, but their return after the COVID-19 pandemic has been sluggish, prompting the government in September to waive visa requirements for Chinese nationals. So far this year, Thailand has welcomed 23.2 million foreign arrivals. Click here to read… [23]

EU has given Ukrainian military €27 billion – Borrell

The EU has authorized at least €27 billion in direct military assistance to Ukraine since last year, the bloc’s foreign policy chief, Josep Borrell, said, touting the aid as the “highest figure ever reached.” Speaking to reporters ahead of an EU meeting in Brussels on Nov 13, Borrell outlined the agenda for the event, stressing that even with renewed violence in the Middle East, member states should not “forget about Ukraine.” “Our support is increasing. I can tell you that it has reached the level of €27 billion of military support,” he said, adding, “It is the highest figure ever reached. We continue training Ukrainian soldiers. We continue being behind Ukraine.” While the bloc was set to discuss additional aid to Kiev, some member states have reportedly objected to continued largesse. According to multiple senior diplomats cited by Reuters last week, Germany “has had a lot of questions” about a €20 billion spending plan favoured by Borrell, while other countries may be constrained by “the reality of the public finances.” Slovakia has publicly declared an end to all lethal aid to Ukraine, and France likewise announced that it would scale back arms shipments on Nov 12, with Minister of the Armed Forces Sebastien Lecornu stating that Paris would no longer supply weapons from its own stockpiles. Click here to read… [24]

Biden set to sign spending bill with no Ukraine aid

The US House of Representatives approved a bill on Nov 14 which Speaker Mike Johnson proposed last week to avoid a government shutdown. The Republican caucus was split over the vote, while all but two Democrats supported it. The Democrat-controlled Senate is expected to approve the bill within days, with President Joe Biden’s signature also awaited, according to US media. The so-called 'stopgap' legislation included no money for Ukraine aid. Senate Majority Leader Chuck Schumer said he wanted a vote in his chamber to happen “as soon as possible,” after hearing from the Biden administration that it was on board. During his consultations, “both of us agreed, the White House and myself, that if this can avoid a shutdown, it will be a good thing,” he told journalists. The shutdown deadline is November 17. Johnson, a Republican who was elected speaker just three weeks ago, tabled his proposal under special expedited procedures that require a supermajority. The conservative wing of the Republican Party opposed it, but Democrats united with the centrists in the GOP to overcome their resistance in a 336 to 95 vote. The speaker’s plan is for a two-tier funding of US government agencies through mid-January and early February. Click here to read… [25]

U.S., Japan, South Korea defense chiefs to share North Korea missile data in December

Defense chiefs from South Korea, Japan and the United States have agreed to start as planned a real-time data sharing scheme on North Korean missiles in December, South Korea’s defense ministry said on Nov 12. U.S. Defense Secretary Lloyd Austin met his South Korean counterpart, Shin Won-sik, in Seoul on Nov 12 with Japanese Defense Minister Minoru Kihara joining the meeting online. The ministers discussed strengthening their three-way cooperation in the face of “severe security environments,” Kihara told reporters. It was the first time the three ministers held such a gathering, he said. “We confirmed that we are steadily making adjustments, bringing the process to the final stage,” Kihara added. South Korean President Yoon Suk Yeol on Nov 12 called for the maintenance of readiness posture by the South Korean and U.S. military forces in case of “any provocations” by North Korea including a Hamas-style surprise attack. Yoon made the remark during a dinner with the U.S. delegation for a Security Consultative Meeting scheduled to be held on Nov 13 including Austin and U.S. Ambassador Philip Goldberg, Yoon’s spokesperson said.U.S. President Joe Biden agreed with Yoon and Japanese Prime Minister Fumio Kishida at an Aug. 18 summit that by the end of this year the three countries would share North Korea missile warning data in real time. Click here to read… [26]

African refugees relieved by UK court decision to block Rwanda asylum deal

On Nov 15, the Supreme Court of the United Kingdom unanimously ruled that the government’s plan to send more than 24,000 refugees to Rwanda in a controversial 140 million pounds ($174m) deal is unlawful. In blocking the deal, the apex court upheld a ruling by lower court over the last year that asylum claimants sent there were also at risk of being returned to their home countries, contrary to an international law principle known as non-refoulement. “There are substantial grounds for believing that asylum seekers would face a real risk of ill-treatment by reason of refoulement to their country of origin if they were removed to Rwanda,” part of the judgment read on Nov 15. The ruling has dealt a blow to Prime Minister Rishi Sunak’s much-touted migration policy and could potentially fracture the ruling Conservative party ahead of next year’s general election. But those at the centre of the controversial policy say they are relieved by the outcome. “I am very happy to not go to Rwanda! Maybe my dreams will come true to stay in the UK to work hard, to continue my business studies which I began in Sudan, and to hopefully see my family someday soon,” says Mahmoud Altigani, 26, one of those who was to be sent to Rwanda. Click here to read… [27]

Israeli minister supports ‘voluntary migration’ of Palestinians in Gaza

Israel’s far-right finance minister, Bezalel Smotrich, says the “voluntary migration” of Palestinians in Gaza is the “right humanitarian solution” for the besieged enclave and for the region, a stance Palestinian officials liken to support of “ethnic cleansing”. Smotrich made the comments after Knesset members Danny Danon, the former Israeli ambassador to the United Nations, and Ram Ben-Barak, former deputy director of the intelligence agency Mossad, published a commentary in The Wall Street Journal on Nov 13 suggesting moving some of Gaza’s population to nations that will accept them.“I welcome the initiative of members of Knesset Ram Ben-Barak and Danny Danon on the voluntary immigration of Gaza Arabs to the countries of the world. This is the right humanitarian solution for the residents of Gaza and the entire region,” Smotrich wrote in a Facebook post on Nov 14. “A cell with a small area like the Gaza Strip without natural resources and independent sources of livelihood has no chance to exist independently, economically and politically in such a high density for a long time. “The reception of refugees by the countries of the world that really want their best interests, with the support and generous financial assistance of the international community and within the state of Israel, is the only solution that will bring to an end the suffering and pain of Jews and Arabs alike.” Click here to read… [28]

Taiwan opposition to unite on presidential ticket

Taiwan's two main opposition parties, which have vowed to renew talks with China, agreed on Nov 15 to make a decision on a joint presidential ticket for January's elections, as the front-running ruling party decried interference from Beijing. The issue of China, which views Taiwan as its territory, looms over the Jan. 13 parliamentary and presidential elections. China has stepped up military and political pressure to press the island to accept its sovereignty claim, which Taiwan rejects, including high-profile war games. Vice President Lai Ching-te, the ruling Democratic Progressive Party's (DPP) presidential candidate, has almost consistently led opinion polls, leaving candidates of the main opposition Kuomintang (KMT), Hou Yu-ih, and the Taiwan People's Party (TPP), Ko Wen-je, to battle it out for second place. The KMT and TPP have been in acrimonious talks since last month on a united presidential bid, but had failed to agree how to decide who should be the presidential candidate and who should be the running mate. After talks hosted by former president Ma Ying-jeou, also a senior KMT member, the two parties said they had agreed to use opinion polls conducted between Nov. 7 and this Friday to decide the makeup of the presidential bid with the result to be announced on Saturday. Click here to read… [29]

Pentagon fails annual audit

The US Defense Department has flunked its sixth annual independent audit, having failed to even provide auditors with enough financial data to complete their evaluation, a report released on Nov 15 revealed. The overall results of the audit – the sixth that the Pentagon has failed since it was required to begin auditing itself in 2018 – were a “disclaimer of opinion,” the worst of three possible grades and the same rating the department received last year. The result took into account 29 component audits, of which 18 were also flunked with disclaimers of opinion. Just seven components received “unqualified opinions,” the most desirable rating, while another one received a “qualified opinion.” Pentagon Chief Financial Officer Michael McCord attempted to frame the audit results positively, stating in a press release accompanying the report that his department was “making progress toward the goal of a clean audit.” McCord acknowledged in a call with reporters on Nov 15 that the Pentagon had not expected to pass the audit, but insisted it was moving toward resolving its balance of funds with the Treasury Department. However, the Pentagon remains the only cabinet-level department never to have received a clean financial bill of health. With $3.8 trillion in assets, $4 trillion in liabilities, and little meaningful oversight, the potential for waste and fraud is immense, according to the Government Accountability Office. Click here to read… [30]

Argentina is no longer joining Brics, says top aide to Javier Milei, right-wing presidential winner

Argentina is no longer joining Brics following the victory of self-proclaimed anarcho-capitalist Javier Milei in the country’s presidential election on Sunday, a top aide said on Nov 19. Diana Mondino, Milei’s principal adviser on foreign affairs, said Argentina would not proceed with plans to join the association of leading emerging markets comprising Brazil, Russia, India, China and South Africa. “We do not understand the interest” in the bloc, Mondino told Russian news agency Sputnik News. “We do not understand … what Argentina gets out of it at this moment. If later it turns out that there is an advantage, of course, we will analyse it.” Argentina’s Brics candidacy was the only one in the Americas supported by the group’s founding members during its last summit in August. But Milei during his campaign pledged to decline membership, which should come into force from January 2024. In the election run-off, Milei competed against Argentina’s incumbent finance minister, Sergio Massa. Although electoral officials have yet to ratify the results, preliminary tallies showed Milei secured 56 per cent of the vote, compared to Massa’s 44 per cent, with 99 per cent of ballots counted. Previously the right-wing libertarian Milei said he would “not do business with communist countries” and advocated breaking off relations with China in favour of ties with “the civilised side of the world”. Click here to read… [31]

Health

Diseases spread in Gaza amid water and sewage crisis, cholera feared

Sewage flows in the streets of Gaza as all key sanitation services have ceased operating, raising the alarming prospect of an enormous surge of gastrointestinal and infectious diseases among the local populations – including cholera. For Gaza’s 2.3 million residents, finding drinkable water has become close to impossible. The World Health Organization (WHO) has recorded more than 44,000 cases of diarrhoea and 70,000 acute respiratory infections, but real numbers may be significantly higher. UN agencies have warned that the collapse of water and sanitation services could even spark bouts of cholera if urgent humanitarian aid is not delivered. If nothing changes, “there will be more and more people falling sick and the risk of major outbreaks will increase dramatically,” Brennan said. Gaza’s essential water and sanitation infrastructure has either been destroyed by Israeli bombardment or has run out of fuel. In the southern governorates of Deir el-Balah, Khan Younis and Rafah, all 76 water wells have stopped functioning, as well as two main drinking water plants and 15 sewage pumping stations, according to the UNRWA. WHO estimates that the average person in Gaza is currently consuming just 3 litres of water per day for drinking and sanitation. This compares with the minimum of 7.5 litres recommended by the agency in emergency situations. Click here to read… [32]

Japan to require tuberculosis tests for travellers from 6 countries

The government in fiscal 2024 plans to require people in six countries to take tuberculosis tests before they enter Japan for visits exceeding three months, health minister Keizo Takemi said. The six countries are the Philippines, Vietnam, China, Indonesia, Nepal and Myanmar, Takemi said on Nov. 16, adding that many new TB patients in Japan come from those nations. Takemi was responding to a question from Kozo Akino, a member of ruling coalition partner Komeito, at a meeting of the Upper House Committee on Health, Labour and Welfare. People in those countries will be asked to take TB tests at Japanese government-designated medical institutions before they travel to Japan. If they test positive, Japan will not issue visas to them. Due to the increasing number of foreign-born TB patients in Japan, the ministry in 2018 decided to introduce the testing. But the plan has been delayed. “We are making preparations for implementation as soon as possible,” Takemi said. “We hope to start in the next fiscal year.” According to the health ministry, 10,235 new TB patients were registered in Japan in 2022. But since 2021, the number of TB cases has fallen below 10 per 100,000 population, making Japan a “low endemic” country for TB as classified by the World Health Organization (WHO). Click here to read… [33]