China’s woes provide a timely lesson in the limits of state control; US President Joe Biden to Visit Vietnam on September 10
China's Guangdong, Fujian provinces take early action as Typhoon Saola looms
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China’s woes provide a timely lesson in the limits of state control
Telegraph
China's economic slump is becoming increasingly apparent, and it is clear that Beijing does not know how to address the issue. This is a problem for the rest of the world as China is the main manufacturing hub and top trading partner for more than 120 countries. The slump coincides with President Xi Jinping's efforts to centralize power, which has stifled growth. The Chinese economy has failed to bounce back from the pandemic as expected, with manufacturing activity contracting, exports falling, and youth unemployment reaching record highs. China may be falling into a deflationary trap and is at risk of missing its growth target. President Xi is opposed to promoting consumer spending and private company investment, instead reverting to the approach of building infrastructure projects. However, this approach may no longer be effective, as new projects may suffer diminishing returns. Lowering interest rates in an economy with bad debts and speculative property activity may also do more harm than good. China's economic woes should serve as a reminder that autocracy can stifle growth and should caution countries from seeking shelter under its umbrella.
US President Joe Biden to Visit Vietnam on September 10
The Diplomat
US President Joe Biden will visit Vietnam on 10 September, where he is expected to announce an upgrade in the diplomatic relationship between the two countries. The visit is likely to result in a "strategic partnership" between the US and Vietnam, a significant milestone in their growing relationship. An upgrade would allow for increased collaboration in areas such as technology, semiconductor production, and artificial intelligence. The move aligns with Vietnam's foreign policy of building close relations with major powers to counterbalance China's influence in the region. Vietnam is also considering similar upgrades with Singapore and Australia.
China's Guangdong, Fujian provinces take early action as Typhoon Saola looms
Reuters
Typhoon Saola is expected to hit China's southeastern coast, forcing provinces to enact emergency response measures and call fishing boats back to ports. Guangdong province has issued an emergency warning for strong winds, while Fujian province has called all fishing vessels back to port. Xiamen city in Fujian has also suspended some passenger ferry services. There is uncertainty regarding the typhoon's path as it is expected to interact with another typhoon, Haikui. Taiwan has already issued a sea warning and cancelled ferry services to offshore islands. This is the fourth typhoon to potentially make landfall in China this year.
Schools egged, businesses harassed: Japan suffers Chinese backlash over Fukushima release
CNN
Japan has summoned China's ambassador in response to a wave of harassment directed at Japanese people following the release of treated radioactive wastewater from Fukushima. Several videos on social media show Chinese callers dialing the numbers of Japanese businesses and institutions, then shouting into the phone, "Why do you release nuclear polluted water to the ocean?" The mayor of Fukushima, Hiroshi Kohata, said on Saturday the city's town hall alone had received about 200 such harassment calls in two days. One seafood market in Fukushima prefecture received dozens of calls from Chinese numbers on Friday. Japan's foreign ministry said on Monday it had summoned the Chinese ambassador over the harassment calls, saying the incidents were "extremely regrettable and worrisome." China's response, however, has been less than sympathetic. On Monday, the Chinese embassy in Japan released a statement condemning the release once again, accusing Tokyo of causing "unpredictable harm" to human and marine health, denying that it had spread any misinformation - and claiming that it, too, had received harassment calls, but from Japanese numbers.
Japan says brick thrown at Beijing embassy amid Fukushima spat
Al Jazeera
Japan has accused China of harassment and vandalism following the release of wastewater containing tritium from the Fukushima nuclear plant into the Pacific. China has been the most vocal opponent of the release plan, banning all Japanese seafood imports in response. Japan's foreign minister has called on the Chinese government to take action to calm the situation and protect Japanese residents and diplomatic missions in China. China responded by calling on Japan to dispose of the water "in a truly responsible way". Japan has urged its citizens in China to keep a low profile and increased security around schools and diplomatic missions.
BRICS Expansion Is No Triumph for China
Foreign Policy
The expansion of the BRICS forum to include six new members does not mark a major victory for China and Russia, nor does it herald the rise of a post-Western global order, according to Richard Gowan in Foreign Policy. Gowan argues that the internal dynamics and conflicting interests of the new members will undermine attempts to establish a cohesive agenda. He also contends that the existing members of the BRICS group, Brazil, Russia, India, China and South Africa, are already divided by geopolitical tensions between China and India. Gowan also suggests that the US should concentrate on exploiting the contradictions within the group, rather than worrying about its supposed rise. He concludes that the expansion of the forum is a warning to the US to end its strategic slumber and respond to the challenges presented by China and Russia.
US to counter growing size of China’s military with ‘autonomous systems’
Al Jazeera
The Pentagon plans to deploy thousands of drones and other high-tech military equipment in the next two years to counter China's numerical advantage in personnel and weaponry, according to US Deputy Secretary of Defense Kathleen Hicks. Speaking at a military technology conference in Washington, DC, Hicks emphasized the need for innovation in the face of strategic competition with China, which she described as a "relatively slow and lumbering" rival. She added that while the US had been engaged in conflicts in Iraq and Afghanistan, China had been focused on building a modern military to counter US advantages. Hicks highlighted China's military advantage of "mass", with more ships, missiles, and personnel, and stated that the US would counter with its own mass, which would be harder to plan for, hit, and beat. The goal is to deploy autonomous systems at scale within the next 18 to 24 months, which will be less expensive and put fewer people in harm's way. The Pentagon has previously declared China a "pacing challenge" and stated the need for urgent deterrence against Beijing.
Europe loses position as world’s top offshore wind provider to China
Telegraph
China has overtaken Europe as the top builder of offshore wind power, according to the Global Wind Energy Council (GWEC). China contributed around 49% of the global offshore wind market in 2020, compared to Europe's 47%. Europe saw its lowest installation rate since 2016 last year, and the GWEC warned that there may be supply chain bottlenecks in every region of the world except China by the mid-2020s. The UK is the largest contributor to European offshore wind capacity, but the GWEC predicted the country's share of new projects will fall from almost half today to around a fifth in a decade.
Cleverly says China must show ‘responsibility’ on world stage ahead of visit
The Independent
UK Foreign Secretary James Cleverly will visit China to hold talks with Chinese officials, including Foreign Affairs Minister Wang Yi and Vice President Han Zheng. The visit is part of the UK's efforts to ease tensions between the West and Beijing and recognize China's economic and political influence globally. Cleverly plans to raise concerns over human rights and the treatment of Hong Kong, and argue that with China's global significance comes a responsibility on international security. The visit will be closely watched by China hawks in the Conservative party who have security concerns about China's increasing power.
Foxconn founder muddies Taiwan election race with presidency bid
Reuters
The decision of Foxconn founder Terry Gou to stand as an independent candidate in Taiwan's presidential election in January could disrupt a third term victory for the ruling party. Gou's entrance into the race has been criticised by the main opposition party, the Kuomintang, which fears he could split its vote. The ruling Democratic Progressive Party is also closely watching Gou's campaign. China's increasingly fraught relationship with Taiwan and its military drills around the island have added to tensions ahead of the election.
Chinese investors rush to offshore funds to offset domestic risks
Reuters
Chinese investors are turning to investment products with exposure to overseas assets in order to diversify their portfolios. Retail money has been flowing into exchange traded funds (ETFs) and mutual funds under the Qualified Domestic Institutional Investor (QDII) programme, which allows Chinese money to be invested abroad. Investors are seeking funds that give them access to US, Japanese, and emerging markets such as Vietnam and India, as the Chinese economy struggles. A record 38 QDII funds have been launched this year, outpacing the 31 funds launched in 2022.
UK foreign minister to visit China on Aug 30
Reuters
British Foreign Secretary James Cleverly is set to visit China on August 30th in an effort to improve the strained relationship between the two countries. This visit comes after the trip was postponed from July, and it will be the first visit by a British foreign secretary to China in five years. Cleverly will meet with his counterpart Wang Yi and Vice President Han Zheng during his visit. The UK government has taken a tough stance on China, with Prime Minister Rishi Sunak stating that China poses the "biggest challenge of our age." However, there is also pressure to maintain diplomatic engagement and economic ties with China post-Brexit.
Taiwan says seven Chinese military aircraft crossed Taiwan Strait median line
Reuters
The Taiwanese defense ministry has reported that seven Chinese military aircraft, including fighters and a drone, crossed the median line of the Taiwan Strait on Tuesday. This is the latest in a series of Chinese military activities near the island. The Taiwanese defense ministry has called on Beijing to stop such actions, warning that they could lead to increased tensions and worsen regional security.
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