‘Historic’ rail and shipping plans linking India to Middle East and Europe to be announced at G20; Rahm Emanuel's protocol-busting China swipe stirs controversy
China Questions Why US Should Get First Shot to Chair G-20 Again; G20 admits African Union as permanent member at New Delhi summit; Junket agents return to lure VIPs to Macao's casinos
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‘Historic’ rail and shipping plans linking India to Middle East and Europe to be announced at G20
South China Morning Post
India, the US, Saudi Arabia, the UAE, the EU, and other G20 countries are planning a rail and shipping corridor that will connect India with the Middle East and Europe. This will enable greater trade among the countries and also serve as a counter to China’s massive infrastructure programme. The project, which will include a rail link, electricity cable, hydrogen pipeline, and high-speed data cable, will be announced at the G20 summit. The corridor will increase prosperity, help address the lack of infrastructure needed for growth in lower- and middle-income nations, and reduce "turbulence and insecurity" in the Middle East.
China Questions Why US Should Get First Shot to Chair G-20 Again
Bloomberg
China has objected to the US hosting the Group of 20 (G-20) nations in 2026, according to anonymous sources. G-20 members take turns hosting the annual summit, and the US has announced that it will host after India, Brazil, and South Africa. China’s objection is seen as a symbolic move and is unlikely to change the decision. The objection reflects tensions between China and the US over various issues. The US hosted the first G-20 summit in 2008. China's objection has been backed by Russia, according to one of the sources.
Investors cool on China regional banks as bad loans rise
Nikkei Asia
Bad debt is increasing at China's regional banks as property market issues and a slowing economy take their toll. Smaller banks are being hit harder than their state-backed counterparts, with many cities experiencing a surplus of residential projects and weak economic growth. Standard Chartered, the third-largest shareholder of China Bohai Bank, has reduced investments in regional lenders due to concerns over corporate and individual debt quality. Bad debts from developers and individual mortgages at China Bohai Bank increased by 4.94% and 26.76%, respectively, in the first half of 2023.
Why India is poised to become the centre of the New World Order
Telegraph
Indian Prime Minister Narendra Modi is hoping that demographic trends, a retreat from globalisation, and a desire to check China's rise will result in a new world order that gives countries from the Global South a greater say. India's wishlist includes restructuring the UN Security Council, addressing power imbalances in the IMF and World Bank, and challenging the US dollar's omnipotence. Modi has been working to position India as a key player in future geopolitical alliances. However, India's aversion to being aligned with any particular camp may be tested as global diplomacy evolves.
Modi has made significant efforts to secure India's role in global politics, including rare diplomatic honours from US President Joe Biden and French President Emmanuel Macron. India's foreign policy has traditionally been non-aligned, but it is now seeking alliances based on interests rather than shared values. India's growing economy and potential to rival China economically make it an attractive partner for the West. However, India's refusal to unequivocally condemn Russia's invasion of Ukraine and its human rights abuses and democratic backsliding at home have raised concerns.
India's rivalry with China is unlikely to be resolved soon, and trade between the two countries is lopsided, with India running a significant trade deficit. As India's rivalry with China intensifies, its position of sitting on the geopolitical fence may become more uncomfortable. India's participation in the Quad, a strategic security dialogue with the US, Australia, and Japan, is a clear manifestation of its tilt towards the West. While India is viewed as a potential economic counterweight to China, it is unlikely to play an extra-regional military role. The West must learn to deal with India as a country that may not share all its values, but has interests that align with Western objectives.
CNN
The absence of Chinese leader Xi Jinping and Russian President Vladimir Putin at the Group of 20 (G20) summit in India provides opportunities for President Biden to make a more affirmative case at the summit, according to White House officials. Biden was expected to announce new plans with partner nations in Europe, the Middle East, and Asia to construct a transit corridor connecting the regions, which is a challenge to China's own efforts to expand global trade. He was also unveiling new reforms and investments in the World Bank that could unlock hundreds of billions of dollars in grants and loans for the developing world.
G-20 Sherpas Reach Phrasing Deal for Russia War in Ukraine
Bloomberg
Diplomats from the Group of 20 (G-20) nations have reached a compromise on the language to be used in addressing Russia's invasion of Ukraine. The language is expected to be similar to that agreed at last year's summit in Bali, Indonesia. The US and its allies had sought stronger phrasing to denounce Russia's aggression, while Moscow had resisted and for a time had the support of China. The final statement is expected to directly refer to Russia's war "in" Ukraine, rather than "against Ukraine" as the US and its allies had wanted. The other main sticking points involved how to reflect different views on sanctions and how to define a "just peace" for Ukraine.
G20 admits African Union as permanent member at New Delhi summit
Reuters
The African Union has been made a permanent member of the G20, the group of the world's richest and most powerful countries, Indian Prime Minister Narendra Modi announced at the G20 summit in New Delhi. The African Union, which represents 55 member states, previously had the status of "invited international organisation" but now has the same status as the European Union as a full member. The move was proposed by Modi in June and is seen as a step towards addressing global challenges. Other issues being discussed at the summit include loans to developing nations, reform of international debt architecture, regulation of cryptocurrency, and the impact of geopolitics on food and energy security.
It is for China to explain Xi's absence from G20 summit, US official says
Reuters
China's absence from the annual G20 summit in New Delhi has raised questions, and the US has called on China to explain the reason for President Xi Jinping's absence. The summit was seen as an opportunity for a potential meeting between Xi and US President Joe Biden to mend ties between the two countries. The US deputy national security adviser stated that it was "unfortunate" if China was not committed to the success of the bloc and speculated that China's absence may indicate it is building an alternative world order. China is being represented by Premier Li Qiang instead.
China’s consumer prices rise 0.1 per cent in August, pointing to weak demand
South China Morning Post
China's consumer price index (CPI) increased by 0.1% in August compared to the previous year, reversing the 0.3% fall in July, according to data from the National Bureau of Statistics. The drop in China's producer price index (PPI), which tracks factory prices, narrowed from 4.4% in July to 3% in August. Food prices fell by 1.7% while services prices rose by 1.3%, indicating an uneven recovery. However, analysts have warned that the subdued demand behind weak price figures is a manifestation of China's structural economic problems.
Abuse fears sparked by China’s proposed ‘hurt feelings’ legal change
South China Morning Post
A proposed legal amendment in China could see individuals detained for up to two weeks without trial if they are found guilty of “hurting the feelings of the Chinese nation”. The clause, which is part of an amendment to the Public Security Administration Punishments Law, has prompted concerns that it is too vague and could be open to abuse. The law targets minor offences and is enforced by the police. The proposed amendment could also exacerbate tensions with other countries. The amendment is the most significant change to the law since it was revised in 2012.
Rahm Emanuel's protocol-busting China swipe stirs controversy
Japan Times
US diplomats have been caught making controversial comments about domestic politics in other countries, sparking debate about the appropriateness of such remarks. In one example, a US diplomat expressed support for a political candidate in a foreign country, while in another instance, a diplomat made derogatory comments about a foreign leader. These comments have raised questions about the role of diplomats and whether they should refrain from engaging in domestic politics in other countries. Some argue that diplomats should focus solely on representing US interests abroad, while others believe that they have a responsibility to speak out against human rights abuses and other injustices. The controversy highlights the delicate balance that diplomats must strike when it comes to engaging with the politics of other nations.
Kim Jong Un hosts Chinese and Russian guests at a parade celebrating North Korea’s 75th anniversary
Associated Press
North Korean leader Kim Jong Un invited Chinese delegates and Russian artists to a military parade celebrating the country's 75th founding anniversary, in an attempt to display his ties with Moscow and Beijing amid deepening confrontations with Washington. The parade featured rocket launchers pulled by trucks and tractors, and was focused on paramilitary organizations and public security forces rather than the military units that handle nuclear-capable weapons systems. The parade came ahead of Kim's expected meeting with Russian President Vladimir Putin, which could discuss North Korean arms sales to refill reserves drained by Russia's war on Ukraine.
China consumer prices edge higher as factory price falls moderate
Nikkei Asia
China's consumer prices increased by 0.1% in August compared to the previous year, marking a return to positive territory after a decline of 0.3% in July. The producer price index (PPI) fell by 3.0% in August, a slower decline compared to the 4.4% drop in July. These figures indicate that deflation pressures are easing in the Chinese economy. However, analysts believe that weak demand still requires more policy support. China has implemented various measures to stimulate growth, but more steps may be needed to boost consumer confidence as the labor market recovery slows and household income expectations remain uncertain. Premier Li Qiang has stated that China is expected to achieve its 2023 growth target of around 5%, but some analysts believe this target could be missed due to a worsening property slump, weak consumer spending, and falling credit growth.
Economy out of deflation but faces threat of relapse
Guardian
China's consumer price index (CPI) rebounded in August, indicating that the country has emerged from deflation. The CPI rose 0.1% year on year, following a brief period of deflation in July. However, analysts are cautious about the future and do not rule out a relapse into deflation as China's main growth engines, such as the real estate sector and exports, continue to struggle. In addition, the producer price index (PPI) contracted for the eleventh consecutive month in August, indicating reduced margins for companies.
China’s Didi Q2 revenue grows as regulatory curbs ease
Reuters
Chinese ride-hailing company Didi Chuxing reported a 52.6% increase in revenues for the second quarter of 2023 compared to the same period last year, reaching 48.8 billion yuan ($6.65 billion). The company also posted a net loss of 300 million yuan. Didi faced regulatory crackdowns earlier this year, but has since emerged from its troubles and is now planning to engage more actively with consumers and drivers for the remainder of the year. Didi is backed by investors including Alibaba, Tencent, and SoftBank Group.
Apple’s iPhone 15 China launch to be tricky amid government ban, Huawei revival
South China Morning Post
Apple is facing a difficult sales season in China as its products have been banned for use by government agencies and state-owned enterprises, according to industry analysts. Apple's new iPhone 15 range is set to launch next week. This comes as Huawei Technologies tries to make a comeback with its new Mate 60 Pro handset, which will "bring a serious challenge to Apple", said Toby Zhu, an analyst with market research firm Canalys.
Junket agents return to lure VIPs to Macao's casinos
Nikkei Asia
Casinos in Macao are collaborating with junket agents to attract high rollers back to gaming tables. This comes after a crackdown by the authorities on junket operators, who bring in VIP gamblers, as well as travel restrictions due to Covid-19. Casino revenues have surged this year, reaching 70% of pre-pandemic figures in August. The VIP sector has seen unexpected growth following the crackdown, with VIPs accounting for 30% of pre-pandemic levels in July.
Kim Jong Un Meets With Chinese Delegation Ahead of Russia Trip
Bloomberg
Kim Jong Un celebrated the 75th anniversary of the founding of North Korea with a parade in Pyongyang, accompanied by a high-profile delegation from China. The Chinese delegation was led by Liu Guozhong, a member of the Politburo, who is expected to communicate with Kim before his upcoming trip to Russia to meet with President Vladimir Putin. The visit reflects China's desire to maintain economic cooperation with North Korea while avoiding involvement in security and defense issues that would violate sanctions. The Russian leader is believed to be seeking ammunition stockpiles from North Korea to aid his war effort in Ukraine.
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