Global Developments and Analysis: Weekly Monitor, 18 October- 24 October

Economic

Fight terror risks in overseas projects with shared intelligence, Chinese ex-security official says

Countries should step up intelligence sharing to protect overseas investments, according to a former senior Chinese public security official, as Beijing faces greater risks to its belt and road projects. “In the face of challenges, countries need to establish a concept of mutual security,” Chen Zhimin, China’s vice-minister for public security until 2017, told a panel organised by the Beijing-backed Boao Forum in Changsha, Hunan province, on Oct 25. “[Nations should] agree to share intelligence, rules, education and experiences – including hi-tech and big data components – on security matters, in order to achieve a new model of global development,” said Chen, also a former vice-minister of internet regulators the Cyberspace Administration of China. He is currently a member of the country’s top advisory body. China’s latest five-year plan identified “protecting the rights and interests of Chinese overseas investments” as a key goal to ensure national “economic security”, acknowledging that there were increasing risks and uncertainties regarding the safety of China’s wide range of overseas projects under its Belt and Road Initiative. Click here to read... [2]

G-7 trade ministers call for ridding supply chains of forced labour

Ministers from the Group of Seven advanced economies agreed Oct 22 to seek to eliminate forced labour from global supply chains, taking a stance seen as in line with Western criticism of China's treatment of Uyghur Muslims. The joint statement from the G-7 trade meeting in London marks the first time the group has endorsed import restrictions and other trade policy tools to stop forced labour. The ministers voiced concern about states imposing forced labour on vulnerable groups. While not calling out China by name, the statement follows months of Western denunciation and sanctions imposed on Chinese officials over alleged human rights abuses in the Xinjiang region. The group also seeks to promote due diligence by companies in order to identify and prevent human rights violations within supply chains. In addition, the G-7 ministers adopted digital trade principles to guide members on promoting the free transfer of data across borders. Ministers shared concerns about multinationals being compelled to keep servers in countries they operate in and called for a ban on forced disclosures of source codes. Click here to read... [3]

China's SOEs beat hamstrung private sector in profits

China's state-owned enterprises have pulled ahead of the private sector in profitability this year, as private businesses grapple with an array of challenges including regulatory crackdowns, cash crunches and soaring material costs. Big state industrial companies logged 1.77 trillion yuan ($275 billion) in total profits for the first eight months of 2021, up 87% on the year, compared with a 34% rise to 1.64 trillion yuan for their private counterparts, government data shows. The category covers enterprises in manufacturing, mining and similar industries with more than 20 million yuan in annual revenue from their main operations. If this continues, the state sector could beat the private sector in full-year profits for the first time since the global financial crisis of 2008. The trend has raised alarms about the repercussions of President Xi Jinping's emphasis on strengthening state enterprises, dubbed guojin min tui -- "the state advances, the private sector retreats." While Xi said in April 2020 that reform of state-owned companies was needed, he also asserted that the sector could not be "denied or diminished." It also underlines the hurdles to China's bid to join the Comprehensive and Progressive Agreement on Trans-Pacific Partnership, which bars members from favouring state enterprises. Click here to read... [4]

Xi’s ‘Common Prosperity’ in Theory and Practice

The publication in the party’s theoretical journal, “Seeking Truth,” appears partly aimed at reassuring investors and entrepreneurs spooked by novel language about “rationally adjusting” excessive incomes in the original mid-August readout of Mr. Xi’s speech, which came at the height of Beijing’s campaign to rein in its internet giants. The expanded remarks still contain such language, but the tone and structure contain some marked differences. Mr. Xi forcefully addresses entrepreneurship right near the top, saying that “common prosperity depends on hard work” and innovation and that law-abiding entrepreneurs should be particularly encouraged. The newly released remarks also warn about the dangers of “welfarism” and government dependence—language that was absent from the original readout. In theory, there is a fair amount for investors to like here: most important, it shows that Mr. Xi understands the importance of incentives—and that the rapidly escalating regulatory campaign over the past year risks damaging entrepreneurship. The speech also fits with Beijing’s long standing skepticism about big outlays for social services, as opposed to infrastructure or carrots for businesses like cheap land. The problem, of course, is that this is all happening in the lead-up to the 20th Party Congress next fall. Click here to read... [5]

China Plans Property-Tax Trials as It Targets Speculation

China said it would conduct five-year property-tax trials in some regions of the country as Beijing looks for ways to rein in real-estate speculation and distribute wealth more evenly. The National People’s Congress Standing Committee, the country’s top legislative body, passed the tax-pilot program on Oct 23, the official Xinhua News Agency reported. The State Council, China’s cabinet, is expected to disclose details in the next few months, including which regions this initiative will cover and how the tax rate will be set, people familiar with government deliberations said. Chinese leader Xi Jinping has long sought to impose a nationwide property tax to curb housing speculation, bring down runaway prices and reduce the financial burden on families already strained by rising education, medical and other costs. But his broad property-tax push has met heavy resistance from within the ruling Communist Party, including both the elites and its rank-and-file members. An initial proposal to test-run the tax in some 30 cities has been scaled back to around 10 cities, according to people familiar with the deliberations. A new law aimed at advancing the tax across the country likely won’t be finalized until around 2025, the last year of the current five-year development plan, the people said. Click here to read... [6]

China’s Indonesian coal imports hit record amid power crisis, Southeast Asian nation now biggest supplier

Indonesia is now overwhelmingly China’s biggest overseas supplier of coal, with shipments hitting a record last month after Beijing loosened curbs on imports to tackle its power crisis. Cargoes of coking, thermal and brown coal from the Southeast Asian nation surpassed 21 million tonnes in September, from just over 17 million tonnes in August, and now account for about two-thirds of China’s total imports, according to customs data. Chinese buyers have been forced to tap other suppliers of the fuel to replace Australian exports banned almost a year ago after political relations with Canberra soured. But hopes that Mongolia could supply more coal – particularly the higher quality produced by Australia and used by steel mills – were dashed as coronavirus pandemic restrictions in China’s neighbour saw cargoes sink below 1 million tonnes, according to the data. Indonesia’s benchmark coal price has hit record levels, bolstered by a surge in demand since June, when Beijing pledged to raise imports in an ultimately unsuccessful attempt to head off the power crisis that is now gripping the country. Late last year, China struck a three-year deal with Indonesian miners for US1.5 billion of the fuel as Beijing sought long-term options to displace Australian supplies. Click here to read... [7]

Japan to lobby Saudi, UAE, and other oil nations to boost supply

Japan will urge petroleum-producing nations to raise output and ease the soaring global oil prices that have hurt both corporate earnings and household budgets. The plan to lobby oil producers, in collaboration with the International Energy Agency, is based on directives by Prime Minister Fumio Kishida. Tokyo also looks to offer state support for affected industries, as officials from relevant ministries met Oct 18 to discuss ways to address the oil price rally. "The government as a whole will respond swiftly to make sure there is no disruption to industry or the daily lives of citizens," said Chief Cabinet Secretary Hirokazu Matsuno, who attended the meeting. Tokyo will work with the IEA to ask Saudi Arabia, the United Arab Emirates and other major oil producers to boost output. Koichi Hagiuda, the trade and industry minister said after Oct 18's meeting that he intends to talk with oil producing nations ahead of the OPEC Plus meeting set for early November. DaishiroYamagiwa, Japan's economic revitalization minister also attended Oct 18's meeting. Foreign Minister Toshimitsu Motegi spoke by phone Oct 18 with Kuwaiti counterpart Ahmad Nasser Al-Mohammed Al-Sabah, asking for the Persian Gulf country's cooperation toward stabilizing the market including via greater crude production. Click here to read... [8]

Semiconductor giant TSMC’s decision to cooperate with Washington’s chip data request fuels anger in China

The decision by Taiwan Semiconductor Manufacturing Co (TSMC) to comply with a US request for information has stirred anger and uneasiness in China over fears that Washington could use the information to sanction Beijing, even though the Taiwan chip maker said it will not reveal confidential client information to the US government. TSMC, the single-most important player in the global semiconductor industry, said in a statement on Monday that it will “respond to” a request by the US Commerce Department seeking information from companies in the chip supply chain, a list that also included South Korea’s Samsung Electronics and US chip firm Intel. While the US government said its request was aimed at finding out reasons for the chip shortage – and no Chinese company was directly involved – the move has raised alarm bells in China. Xi Chen, an academic committee member at Peking University’s Institute for Global Cooperation and Understanding, said earlier that the data could potentially help Washington impose sanctions on Chinese companies in a more precise way. The decision by TSMC to comply with US sanctions on Huawei Technologies Co devastated the Shenzhen-based company’s smartphone business. Click here to read... [9]

Toyota testing hydrogen combustion engines in race cars

Toyota said Oct 25 it is testing hydrogen combustion engines in race cars as it works toward using the technology in commercial products. Such engines burn hydrogen as fuel instead of gasoline much like rockets. The Japanese automaker said testing the technology in race cars will allow it to collect data and try to fix problems on-site. Toyota Motor announced earlier that it was developing a hydrogen combustion engine, which Ford Motor and other automakers have also developed. Vehicles powered by such engines are different from fuel cell vehicles that use hydrogen to create electricity, and from electric or hybrid vehicles. ''We want to propose multiple options to meet regional needs,'' Naoyuki Sakamoto, chief engineer of the hydrogen-powered engine Corolla model, said in an online news conference. Sakamoto declined to say when the hydrogen combustion engine may become a commercial product, acknowledging further development are needed to address its so far limited driving range. Infrastructure for fuelling such vehicles is another obstacle. One advantage of hydrogen engines is that minimal adjustments are needed from regular internal combustion engines, except for the fuel piping and injection systems. The use of hydrogen as fuel comes with some risk concerns, but hydrogen fuelling stations are operating across Japan, with no major accidents so far. Click here to read... [10]

Biden and Democrats Push for Budget Deal This Week as Rifts Remain

President Biden and Democratic congressional leaders raced on Oct 25 to strike a compromise on a domestic policy and climate package, pushing for a vote within days even as critical disagreements remained over health benefits, paid leave, environmental provisions and how to pay for the sprawling plan. Negotiators were closing in on an agreement that could spend around $1.75 trillion over 10 years, half the size of the blueprint Democrats approved earlier this year, as they haggled with centrist holdouts in their party who are pressing to curtail the size of the bill. They have coalesced around a plan that would extend monthly payments to families with children, establish generous tax incentives for clean energy use and provide federal support for childcare, elder care and universal pre-kindergarten. An array of tax increases, including a new wealth tax for the country’s billionaires, would pay for the initiatives. But a final deal remained elusive amid disputes over the details of potential Medicare and Medicaid expansions, a new paid family and medical leave program, programs to combat climate change and a proposal to lower the cost of prescription drugs. Click here to read... [11]

Saudi Arabia pledges 2060 target of net-zero emissions

One of the world's largest oil producers, Saudi Arabia, announced Oct 23 it aims to reach “net zero” greenhouse gas emissions by 2060, joining more than 100 countries in a global effort to try and curb man-made climate change. The announcement, made by Crown Prince Mohammed bin Salman in brief scripted remarks at the start of the kingdom's first-ever Saudi Green Initiative Forum, was timed to make a splash a little more than a week before the start of the global COP26 climate conference being held in Glasgow, Scotland. Although the kingdom will aim to reduce its emissions, Prince Mohammed said the kingdom would do so through a so-called “Carbon Circular Economy” approach. That approach focuses on still unreliable carbon capture and storage technologies over efforts to actually reduce global reliance on fossil fuels. The announcement only pertains to Saudi Arabia’s efforts within its national borders. Earlier this month, the United Arab Emirates — another major Gulf Arab energy producer — announced it too would join the “net zero” club of nations with a target to reach net-zero emissions by 2050. The UAE says it is home to three of the largest solar facilities in the world and is the first country in the Middle East to deploy nuclear power. Click here to read... [12]

Strategic

Chinese, Russian navy operation cuts through 2nd Japan strait

Chinese and Russian naval vessels for the first time passed through a second strait in waters off the Japanese archipelago simultaneously on Oct. 22. A fleet of 10 naval vessels consisting of five from each country traversed the Osumi Strait, located between Kyushu and Tanegashima island, into the East China Sea, Japan’s Defense Ministry announced the following day. The same fleet on Oct. 18 moved through the Tsugaru Strait, separating the Japanese islands of Honshu and Hokkaido, into the Pacific Ocean, meaning it has now travelled halfway around the Japanese archipelago. As well as being the first time Chinese and Russian naval vessels have passed through the two straits at the same time, it is also unusual for such a large number of vessels to simultaneously sail through a strait in waters off the Japanese archipelago. The move was an apparent attempt to put military pressure on Japan, according to a Japanese government source. China and Russia are believed to be trying to counter repeated joint military drills Japan is conducting with the United States and other countries. Click here to read... [13]

Wang Yi offers 5 suggestions on improving China-Japan ties at Beijing-Tokyo Forum

As next year marks the 50th anniversary of the normalization of diplomatic relations between China and Japan, Chinese State Councillor and Foreign Minister Wang Yi offered five suggestions to guide bilateral relations at the 17th Annual Beijing-Tokyo Forum via video in Beijing on Oct 25. He highlighted the importance of rebuilding mutual trust, upgrading cooperation, managing differences, expanding exchanges and enhancing coordination. Supported by China's State Council Information Office (SCIO) and Japan's Ministry of Foreign Affairs, and jointly held by the China Foreign Languages Publishing Administration and Japan's think tank Genron NPO, the 17th Annual Beijing-Tokyo Forum opened on Oct 25 in Beijing and Tokyo at the same time in dual online and in-person formats. Issues from history, the Taiwan question and other issues bear on the political foundation of bilateral relations, said Wang. He urged the two sides to abide by the principles and spirit of the four political documents between China and Japan, warning that Japan should not be vague on the issues, let alone try to cross the bottom line. Second, China and Japan should upgrade cooperation to achieve higher levels of mutual benefits as the fundamentals of mutual needs and complementary advantages remain unchanged, said Wang, noting that the potential for cooperation is still huge. Click here to read... [14]

Taliban to form new armed forces including former regime troops

Afghanistan’s Taliban-led government on Oct 25 announced it is to form new armed forces for the country including soldiers from the previous regime’s military. The former Afghan military and Western-backed government collapsed on Aug. 15 when President Ashraf Ghani fled Afghanistan as the Taliban took control in a lightning offensive while the US and its allies were withdrawing troops after 20 years on the ground. In September, the Taliban appointed an interim government in Afghanistan, declaring the country an Islamic emirate. Defense Minister Mullah Mohammed Yaqoob, the son of Taliban founder Mullah Omar, announced the formation of new armed forces on Oct 24, in an audio message released by the Defense Ministry. Taliban spokesman, Zabihullah Mujahid, told Arab News: “Army is a priority and urgent need of the country. The Islamic emirate would work on forming an empowered army that would be responsible for protecting Afghans and would have the ability to defend the peace of Afghanistan at any cost.” He said that the new army would be comprised of Taliban fighters and soldiers of the former regime. However, there was no comment on whether the formation of the new armed forces would be supported by other countries. Click here to read... [15]

AUKUS spurs French strategic review with tilt toward Japan, India

France is reviewing its Indo-Pacific approach after being blindsided by the AUKUS alliance that scuttled its submarine deal with Australia, a French official said in Tokyo on Oct 19, with Paris keen to strengthen ties with Japan and India. Philippe Errera, the French Foreign Ministry's director-general for political affairs and security, was visiting Japan with Alice Guitton, director-general for international relations and strategy at the Ministry for the Armed Forces, to meet with their Japanese counterparts and lay the groundwork for a "2+2" ministerial-level meeting by the year-end. France has also been boosting ties with India in recent years. In 2019, the two countries accelerated their strategic convergence with a two-day summit in Paris, which led to joint military exercises and India agreeing to buy French fighter jets under a contract worth 7.9 billion Euros ($9.2 billion). Together with Japan and India, "we note a convergent vision on the fact that the Indo-Pacific stakes are not reduced to military competition with China," and should include areas such as economy and health, Errera said. For Paris, considered the most proactive proponent of an Indo-Pacific approach within the European Union, the increasingly tight-knit Anglosphere may be a motivation to shore up its own security presence. Click here to read... [16]

Why Dubai plans to build infrastructure in Kashmir

The government of Dubai, one of the UAE's seven emirates, recently inked an agreement with India to ramp up infrastructure investment in Jammu and Kashmir. Indian Prime Minister Narendra Modi's government said the deal will see Dubai building infrastructure in the troubled region including industrial parks, IT towers, multi-purpose towers, logistics centres, a medical college and a specialized hospital. "The world has started to recognize the pace (at) which Jammu and Kashmir is traversing on the development bandwagon," Indian Trade Minister Piyush Goyal said in a statement. Sultan Ahmed Bin Sulayem, chairman and CEO of DP World Dubai, told media in Srinagar: "We are committed to connect Jammu and Kashmir to the rest of India. We know how to do that, we know the obstacles.” No figure for the value of the accord was given but Sulayem pointed out that the investments by his firm will be part of the Modi government's "Make in India" initiative. This is the first investment agreement by a foreign government involving Kashmir since New Delhi scrapped the region's special status in 2019. Click here to read... [17]

Myanmar threatens to skip ASEAN summit over junta chief's exclusion

Myanmar's junta threatened on Oct 25 to skip an Association of Southeast Asian Nations (ASEAN) summit after the bloc said that the country's military chief could not attend over doubts about the government's commitment to defusing a bloody crisis. Myanmar has been in turmoil since the generals ousted civilian leader Aung San Suu Kyi in a February coup, triggering nationwide protests and a violent crackdown on dissent. Earlier this month, ASEAN - under international pressure to broker a diplomatic solution to the conflict - excluded junta chief Min Aung Hlaing from a forthcoming leaders' summit. The exclusion from the Oct 26 to Oct 28 meeting in Brunei "broke ASEAN principles", junta spokesman Zaw Min Tun told local media on Oct 25. He confirmed that the bloc had instead invited a "non-political" representative - director general of the foreign affairs ministry Chan Aye. "But we aren't sure whether to attend or not ... Attending it could affect our country's sovereignty and image," the spokesman said. ASEAN issued the rare rebuke to Myanmar after the junta rebuffed requests that a special envoy meet with "all stakeholders" in the country - a phrase seen to include deposed leader Aung San Suu Kyi. Click here to read... [18]

U.S. National Security Advisor met representatives of Myanmar's shadow government

U.S. National Security Advisor Jake Sullivan met on Oct 26 with representatives of Myanmar's National Unity Government (NUG), set up by opponents of army rule, the White House said late on Oct 26. In the virtual meeting, Sullivan reiterated continued U.S. support for the pro-democracy movement in Myanmar and discussed ongoing efforts to restore the country's path to democracy with NUG representatives Duwa Lashi La and Zin Mar Aung, the White House said in a statement. Sullivan expressed concern over the military's violence and said "the U.S. will continue to promote accountability for the coup", according to the White House. Protests and unrest have paralyzed Myanmar since the Feb. 1 coup, with the military accused of atrocities and excessive force against civilians. The junta blames the unrest on "terrorists" allied with the shadow government. Recognizing Myanmar's junta as the country's government would not stop growing violence, the outgoing United Nations special envoy on Myanmar said earlier on Oct 26. Click here to read... [19]

Kishida orders Japan NSC to weigh strike capability after North Korean launch

Japan's National Security Council will consider having the country secure the capability to strike enemy missile bases in response to an imminent attack, Prime Minister Fumio Kishida said Oct 19 after the group met to discuss North Korea's latest ballistic missile launch. "We reaffirmed that we will consider all possible options, including enemy base strike capabilities," in a planned update of Japan's national security strategy, Kishida told reporters. Tokyo is analyzing Oct 19's launch by Pyongyang with an eye on the possibility that the test involved a submarine-launched ballistic missile, he said. "For the security of Japan and the region, we cannot overlook North Korea's striking progress in nuclear and missile-related technology," Kishida said. Kishida and Chief Cabinet Secretary Hirokazu Matsuno were away from Tokyo at the time of the launch for the first day of campaigning ahead of this month's lower house parliamentary election. Both cut short their speaking schedules and returned to the capital. The prime minister said Deputy Chief Cabinet Secretary Yoshihiko Isozaki was on call to handle any problems that arose in his absence. Click here to read... [20]

N Korea rattles from walking skeletons, not sabres

It’s probably no coincidence that North Korea’s test of a submarine-launched ballistic missile on Oct 19 came just as the country’s military was reported to have begun investigating soldiers’ “nutritional status.” After all, if the “human bullets” who have vowed to protect the leader are getting so few calories it affects their readiness to fight, it makes sense to distract enemies from that sign of national weakness and focus on a new and shiny, non-human projectile that will give the enemies something to worry about. Seoul-based Daily NK reported that it had learned from “a source in the North Korean military” that leader Kim Jong Un “issued an order on October 9 calling for improvements in ‘logistics and soldiers’ health’ during October and November.” This is the period when the military is preparing for the winter months and for winter training. The General Political Bureau and Ministry of Defense in response to Kim’s order are investigating not only wintertime food supplies for the Korean People’s Army (KPA), but also “the state of ‘frailty’ among soldiers due to malnutrition,” the specialty news organization said. Click here to read... [21]

US and Taiwanese officials meet to discuss ‘meaningful’ UN role for island

US and Taiwanese officials discussed plans to allow the island to “participate meaningfully” at the United Nations on Oct 22 in the latest move to upgrade Washington’s relationship with the island. The US State Department said in a statement released on Oct 24 that “high-level representatives” of the US State Department and Taiwan’s foreign ministry had discussed “expanding Taiwan’s participation at the United Nations and in other international fora”. “The discussion focussed on supporting Taiwan’s ability to participate meaningfully at the UN and contribute its valuable expertise to address global challenges, including global public health, the environment and climate change, development assistance, technical standards, and economic cooperation,” the statement said. “US participants reiterated the US commitment to Taiwan’s meaningful participation at the World Health Organization and UN Framework Convention on Climate Change and discussed ways to highlight Taiwan’s ability to contribute to efforts on a wide range of issues,” it continued. The talks came just days ahead of President Xi Jinping’s speech at the UN on Oct 25 to mark the 50th anniversary of the People’s Republic taking China’s seat at the UN. Taiwan, under the name of the Republic of China, had held the Chinese seat until then. Click here to read... [22]

Taiwan rides soft power wave as democracies sour on China

Taiwan cannot match the economic or military might of China. Yet as Beijing doubles down on its belligerent words and actions toward its smaller neighbour, Taiwan is reaping the benefits of soft power as China's image declines. Harvard University announced last week it has relocated its overseas Mandarin program from Beijing to Taipei -- a shift that its student paper reported was "due to a perceived lack of friendliness from the host institution, Beijing Language and Culture University." Harvard's decision could spur other universities with programs in China to make similar moves and comes at a time when countries and organizations are beginning to recalibrate their approach to China and reconsider their view of Taiwan. Some in Beijing appear aware that China has a major image problem -- one that is at least partly of its own doing. Three days after Harvard's announcement, Fu Ying, a former diplomat and current chair of the National People's Congress Foreign Affairs Committee, gently suggested in a People's Daily column on Oct 21 that China could improve its image abroad. Carefully quoting Chinese leader Xi Jinping throughout, Fu's column could be interpreted as a subtle critique of the more combative diplomatic posture Xi has encouraged. Click here to read... [23]

EU-Taiwan relations: MEPs push for stronger partnership

MEPs hail Taiwan as a key EU partner and democratically in the Indo-Pacific, one that contributes to maintaining a rules-based order in the midst of an intensifying rivalry between the major geopolitical actors in the region. To step up cooperation, the text adopted by MEPs stresses the urgent need to launch an “impact assessment, public consultation and scoping exercise” for an EU-Taiwan Bilateral Investment Agreement (BIA). Members highlight the importance of trade and economic relations between the EU and Taiwan, including on matters relating to multilateralism and the World Trade Organization, technology such as 5G, public health, and essential cooperation on critical supplies like semiconductors. The report expresses grave concern over China’s continued military belligerence, pressure, assault exercises, airspace violations and disinformation campaigns against Taiwan. MEPs urge the EU to do more to address these tensions, to protect Taiwan’s democracy, and the island’s status as an important EU partner. Parliament insists that any change to mainland China-Taiwan cross-strait relations must be neither unilateral nor against the will of Taiwanese citizens. Finally, Members propose changing the name of the European Economic and Trade Office in Taiwan to ‘European Union Office in Taiwan’ in order to reflect the broad scope of EU-Taiwanese ties. Click here to read... [24]

China law tightens land borders amid regional tensions

China’s top legislative body on Oct 23 passed a law to strengthen the country's land borders amid rising tensions with India over disputed territory and concerns over a possible influx of Islamic extremists from Afghanistan. Under the new law, the People's Armed Police Force and the Public Security Bureau, which are in charge of maintaining public order in China, can be mobilized to guard borders in addition to the People's Liberation Army. The forces will look to handle serious incidents, terrorism and illegal crossings in border regions. The law also stipulates that weapons can be used against people illegally crossing borders if they engage in violence, as well as banning the use of drones and model airplanes near borders without permission. The law, passed by National People's Congress Standing Committee, specifies that infrastructure facilities for transport, communication, surveillance and defense can be built on the Chinese side of its borders. It also stipulates that no organization or individual can build durable structures near borders without China's approval. A provision on the protection of water resources is believed to have been made with India in mind. The law states that the national and local governments are obliged to take measures to protect the stability of trans-boundary rivers and lakes. Click here to read... [25]

US nearing a formal agreement to use Pakistan's airspace to carry out military operations in Afghanistan

The Biden administration has told lawmakers that the US is nearing a formalized agreement with Pakistan for use of its airspace to conduct military and intelligence operations in Afghanistan, according to three sources familiar with the details of a classified briefing with members of Congress that took place on Oct 22 morning. Pakistan has expressed a desire to sign a Memorandum of Understanding (MOU) in exchange for assistance with its own counterterrorism efforts and help in managing the relationship with India, one of the sources said. But the negotiations are ongoing, another source said, and the terms of the agreement, which has not been finalized, could still change. The US military currently uses Pakistan's airspace to reach Afghanistan as part of ongoing intelligence-gathering efforts, but there is no formal agreement in place to ensure continued access to a critical piece of airspace necessary for the US to reach Afghanistan. The air corridor through Pakistan to Afghanistan may become even more critical if and when the US resumes flights into Kabul to fly out American citizens and others who remain in the country. Click here to read... [26]

President Erdogan, cabinet discuss expulsion of 10 allied envoys

Turkish President Recep Tayyip Erdogan on Oct 25 backed down from his threat to expel 10 Western ambassadors over their joint statement of support for a jailed civil society leader. Erdogan said during the weekend he had ordered the envoys to be declared persona non grata for seeking the release of prominent philanthropist Osman Kavala, 64, detained for four years on charges of financing protests and involvement in an attempted coup. He spoke after the United States and several of the other concerned countries issued identical statements saying they respected a UN convention that required diplomats not to interfere in the host country’s domestic affairs. Erdogan said the new statement “shows they have taken a step back from the slander against our country”, adding: “They will be more careful now.” The envoys from Canada, Denmark, France, Germany, the Netherlands, Norway, Sweden, Finland, New Zealand and the US called last week for a just and speedy resolution to Kavala’s case, and for his “urgent release”. Erdogan said – after chairing a cabinet meeting devoted to the crisis – spoke of his “duty as head of state to give the necessary response” to foreign violations of Turkey’s sovereign rights. Click here to read... [27]

Sudan security forces arrest PM Abdalla Hamdok, ministers

Security forces in Sudan have arrested Prime Minister Abdalla Hamdok and several other members of the country’s civilian leadership, the information ministry said, as a military officer dissolved the transitional government. Abdel Fattah al-Burhan, a general who headed the Sovereign Council, a power-sharing ruling body, announced a state of emergency across the country and dissolved the council and the transitional government. Hamdok was arrested and moved to an undisclosed location after refusing to issue a statement in support of the coup, said the information ministry, still apparently under the control of Hamdok’s supporters. The arrests on Oct 24 prompted thousands of people to take to the streets in the capital, Khartoum, to demand the release of the political leaders amid reports of clashes and gunfire. Soldiers were stationed on the streets of Khartoum and restricted civilians’ movements, as protesters opposed to the military takeover carried the national flag and burned tyres across the city. Footage broadcast by the Al Jazeera Mubasher television channel showed protesters moving past barricades and entering the street surrounding military headquarters in Khartoum. The footage also showed soldiers standing by as protesters passed them and marched down the street. Click here to read... [28]

Bangladesh police arrest 450 people linked to attacks on Hindu homes and religious sites in worst unrest for over a decade

Bangladeshi police have arrested 450 people following attacks against Hindus in the Muslim-majority country in some of the worst unrest in over a decade, which has seen Hindu religious sites vandalized and homes destroyed. Authorities logged 71 cases linked to violence during the major Hindu festival of Durga Puja across different parts of Bangladesh, the police’s assistant inspector general said on Oct 18. In the last five days 450 people have been arrested in connection with attacks on puja venues and temples, as well as Hindu homes and businesses, and for spreading rumours on social media during the religious holiday, local media reported. The senior police official added that the number of arrests and incidents could increase as investigations are still ongoing. The United Nations’ resident coordinator in Bangladesh, Mia Seppo, condemned the turbulence on the same day: "Recent attacks on Hindus of Bangladesh, fuelled by hate speech on social media, are against the values of the Constitution and need to stop”. She also called for the government to ensure an impartial probe and the protection of minorities. Click here to read... [29]

EU says to hold nuclear talks with Iran in Brussels ‘this week’

The EU’s top negotiator will meet his counterpart from Tehran this week in Brussels for talks on restarting negotiations over Iran’s nuclear deal, a spokesman for the bloc said on Oct 25. The EU and world powers are scrambling to try to get negotiations in Vienna aimed at reviving the 2015 accord back on track after the election of a hard-liner in Tehran. Iran’s chief negotiator on the deal, Deputy Foreign Minister Ali Bagheri, wrote on Twitter that he would be in Brussels on Oct 27 “to continue our talks on result-oriented negotiations.”EU spokesman Peter Stano said the meeting would involve the bloc’s lead negotiator Enrique Mora, who visited Tehran earlier this month to push Iran to restart full negotiations. Stano said the EU’s diplomatic service was “sparing no efforts to resume talks of all parties in Vienna.” But the Vienna-based talks through intermediaries made little headway, before being interrupted by the election of hard-liner Ebrahim Raisi as Iran’s president and suspended for the last four months. The EU acts as coordinator for the deal that also involves Britain, France, Germany, China and Russia. Click here to read... [30]

How Egypt turned the page with a comeback on the regional stage

Egypt has experienced a decade of upheaval since the overthrow of Hosni Mubarak in 2011, contending with two revolutions, environmental pressures, and more recently the economic challenges of COVID-19. And yet, this most populous of Arab countries, straddling the African and Asian continents, has emerged from the turbulence with a new sense of purpose and a desire for greater engagement with the region and the world. It has been announced that Egypt is a nominee to host the COP27 UN climate conference for 2022 — a distinction that seemed unthinkable just a few years ago. This October not only marks the 48th anniversary of the 1973 war with Israel; 40 years ago on October 6, President Anwar Sadat was assassinated by Islamist extremists during the annual victory parade in Cairo. For many in the Middle East, Sadat’s positive legacy is a work in progress: The Egypt-Israel peace process, Egyptian economic development and political liberalization, the Palestinian peace process, and overcoming the challenge of violent extremism. Egypt struck the jackpot in 2015 with the discovery of a giant reservoir known as Zohr, which has developed into one of the largest single gas fields in the Middle East. Click here to read... [31]

Medical

EMA greenlights new Pfizer-BioNTech manufacturing sites and Covid vaccine formula as it mulls extending jab for ages 5-11

The European Medicines Agency (EMA) has approved two additional manufacturing sites for the production of Pfizer-BioNTech’s Covid vaccine, as well as a new formula, as it considers rolling out the shots for those aged five to 11. In a statement issued on Oct 18, the EU’s drug regulator revealed that its human medicines committee (CHMP) has given its seal of approval for two additional manufacturing sites for the production of Comirnaty, the Covid-19 jab developed by the US-German partnership of Pfizer and BioNTech. The agency also said that the CHMP “approved a ready-to-use formulation of Comirnaty” with changes to “provide improved storage, transport and logistic options for vaccine distribution and administration.” The new formulation will be available in a phased rollout starting early next year. In a separate notice on Oct 18, the EMA said it has started evaluating an application to extend the use of Comirnaty to minors aged between five and 11. The watchdog said it will review data on the jab, including an ongoing clinical study conducted on this age group in order to make the decision. This will then be forwarded to the European Commission, which will make a final ruling. Click here to read... [32]

China battles new COVID-19 outbreak with eye on Beijing Winter Olympics

Tens of thousands of people in northern China were placed under strict stay-at-home orders on Oct 25 as authorities sought to stamp out a growing COVID-19 outbreak in the run-up to the Beijing Winter Olympics. Residents of the Chinese capital were also advised not to leave the city unless necessary, although regular transport services out of the city continued as normal. China reported 39 new cases on Oct 25, bringing the tally from the latest Delta variant-linked outbreak to more than 100 cases over the past week. The numbers are extremely low compared with most other places in the world, but China has pursued a zero-case strategy throughout the pandemic and authorities are determined to stamp out the latest outbreak with the Winter Olympics just over 100 days away. Several housing compounds in the capital have been locked down, and organizers on Oct 24 indefinitely postponed a marathon at which 30,000 runners were expected. And at a press briefing on Oct 24, Xu Hejian, vice minister of Beijing's publicity department, advised people against large gatherings and "unnecessary" travel out of the capital. Click here to read... [33]

Some Russian regions shut workplaces as daily COVID-19 cases hit new peak

Russia reported its highest single-day COVID-19 case tally since the start of the pandemic on Oct 25 as some regions imposed a workplace shutdown to combat a surge in infections and deaths. Faced with worsening disease rates and frustrated by the slow take-up of Russia's Sputnik V vaccine by its own population, authorities are introducing stricter measures this week to try to slow the spread of the pandemic. President Vladimir Putin last week declared that Oct 30 to Nov 7 would be paid non-working days but said every region could extend that period or start it earlier depending on the epidemiological situation. Six regions, including the Samara and Perm regions east of Moscow, began their non-working days on Monday (Oct 25), TASS news agency reported. From Oct 28, Moscow will introduce its tightest lockdown measures since June 2020, with only essential shops like supermarkets and pharmacies remaining open. Authorities in St Petersburg, Russia's second-largest city, said COVID-19 restrictions would not be lifted until at least 80 per cent of its population was vaccinated, RIA news agency reported. Nationwide, only about a third of the population has been inoculated. Click here to read... [34]