Mainland Chinese forces focus on control and occupation in day 2 of military drills around Taiwan;China Has a Plan for Its Housing Crisis. Here’s Why It’s Not Enough.
Former marine accused of training Chinese pilots loses legal battle against extradition to US
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Mainland Chinese forces focus on control and occupation in day 2 of military drills around Taiwan
South China Morning Post
The second day of drills conducted by the People's Liberation Army (PLA) around Taiwan has expanded to include domain occupation exercises. The drills, known as Sword-2024A, are aimed at punishing Taiwanese separatist forces and warning external forces. The PLA's activities have raised concerns among other countries, with the US stating that the drills are concerning but not unexpected. The European Union has also called for restraint and the avoidance of actions that could escalate tensions. The drills come after Taiwan's President William Lai Ching-te's inauguration speech, which Beijing criticised for its inclination towards Taiwan's independence.
China Has a Plan for Its Housing Crisis. Here’s Why It’s Not Enough.
NY Times
China is facing a housing crisis as it has nearly four million empty apartments that no one wants to buy, and even more homes that developers have sold but not finished building. This has led to a downturn in the country's economy that is spiraling out of control, and experts believe that Beijing needs to confront the issue in order to transition to more sustainable growth. Trillions of dollars are owed to builders, painters, real estate agents, small companies, and banks across the country. Beijing stepped in last year to cut off the easy money that fueled the real estate boom, leading to a chain of bankruptcies.
Singapore says Taiwan one of most ‘dangerous flashpoints’ in Beijing’s rivalry with US
South China Morning Post
Singapore's Deputy Prime Minister, Gan Kim Yong, has warned that Taiwan has become one of the most dangerous flashpoints in the region as tensions between the US and China continue to rise. Gan's comments come as Beijing begins military drills around Taiwan, increasing pressure on the island's new president, Lai Ching-te. The tensions in the Taiwan Strait have caused concern for the global economy which relies on Taiwan Semiconductor Manufacturing Co to produce the world's most essential chips. Gan has called on the US and China to build trust and cooperate on Taiwan and other issues, stating that the regional economy will prosper if there is peace and stability.
Joe Biden set to skip Ukraine peace summit for Hollywood fundraiser
South China Morning Post
US President Joe Biden will likely miss a Ukraine peace summit next month because it conflicts with a campaign fundraiser in California he’s set to attend alongside George Clooney, Julia Roberts and other stars. Switzerland scheduled the conference for June 15-16, after a meeting of Group of Seven in Italy. Several G7 leaders plan to join but neither Biden nor Vice-President Kamala Harris are scheduled to be there, according to people familiar with the matter who asked not to be named discussing private deliberations.
South China Morning Post
China Vanke, the troubled property developer, has secured a CNY 7.8bn ($1.1bn) lifeline in the form of bank loans guaranteed by its subsidiaries. This came after a downgrade in the company's credit rating from Fitch Ratings, which cited concerns over China Vanke's liquidity. The downgrade reflects a reduction in China Vanke’s liquidity buffer following weaker-than-expected sales performance this year.
Former marine accused of training Chinese pilots loses legal battle against extradition to US
Australian Broadcasting Corporation
Former US marine pilot Daniel Edmund Duggan, an Australian citizen, has been deemed eligible for extradition to the US by a NSW court. Duggan, who denies allegations that he aided the Chinese military, has been held in a maximum-security jail in NSW for the past 19 months. The decision on whether to surrender Duggan to the US now lies with the federal attorney-general, Mark Dreyfus KC. Duggan has 15 days to appeal for review. If extradited and found guilty, he faces up to 65 years in jail.
U.S. pushes for Ukraine aid, united front against China’s trade practices at G7 finance meeting
Associated Press
U.S. Treasury Secretary Janet Yellen is pushing for "more ambitious options" to unlock money from frozen Russian assets in Europe and the U.S. in order to provide aid for Ukraine. Yellen is seeking to build support among finance ministers from the Group of Seven (G7) rich democracies for squeezing more money out of the $260 billion in Russian central bank reserves that have been frozen since Russia's invasion of Ukraine in February 2022. European officials have been reluctant to outright confiscate the funds and hand them to Ukraine as compensation for the destruction caused by Russia. Instead, they are considering using the interest accumulating on the assets, which is only around $3 billion a year. Other proposals include borrowing against the future interest income from the frozen assets to provide Ukraine with up to $50 billion immediately. Yellen is also calling for a united front against China's state subsidies for manufacturing, saying that China's production capacity threatens the existence of competing companies in G7 and developing countries. The finance ministers are working to set up final decisions at the G7 summit in June.
Philippines says it will forge security alliances and stage combat drills despite China’s opposition
Associated Press
The Philippines will continue to build security alliances and stage joint combat drills in disputed waters to defend its territorial interests, Defense Secretary Gilberto Teodoro said Friday, dismissing China’s criticisms of such moves as paranoia. The Philippines, he said, would not tolerate aggression and provocative moves. Since territorial hostilities with China surged last year in the South China Sea, Philippine President Ferdinand Marcos Jr.'s administration has taken steps to forge new security alliances with a number of Asian and Western countries and allowed a U.S. military presence in more Philippine bases under a 2014 defense pact.
South China Morning Post
China's mutual fund industry has seen total assets invested surpass CNY30tn ($4.1tn) for the first time, reflecting increased demand for risk assets among investors. The industry had combined net assets worth CNY30.78tn as of end-April, an increase of 5.4% from the previous month. The China Securities Regulatory Commission (CSRC) has been trying to cultivate institutional investors as one of its long-standing goals.
Donald Trump claims migrants in US illegally ‘building army’ to attack Americans
South China Morning Post
During a campaign rally in New York City, former President Donald Trump claimed that immigrants from Africa, the Middle East, and other regions were "building an army" to attack Americans from within. Trump used inflammatory language about migrants in the US illegally, despite studies showing that immigrants are not more likely to engage in criminal activities. Throughout his campaign, Trump has repeatedly accused immigrants in the US illegally of fueling violent crime. Trump also sought to tie record levels of migrants caught crossing the US-Mexico border illegally with the economic plight of black and Hispanic voters, arguing that migrants were taking their jobs.
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