The UK government is seeking a resolution with the European Union (EU) concerning rules of origin regulations, which is causing concern for car manufacturers, according to Prime Minister Rishi Sunak's spokesman. Stellantis, the world's third-largest carmaker, has urged the government to renegotiate rules stemming from the Brexit deal, or the company will be forced to close British car plants. The business secretary has already discussed the topic with the EU, and the UK government hopes to reach a resolution on the matter.
Concerns over security and privacy have led to calls for the banning of the popular short-form video app TikTok. Critics have argued that its parent company, Chinese firm Bytedance, could potentially use the app, which is one of the most popular ever, as a tool to surveil people on behalf of Beijing. The US federal government and the European Commission have already banned their employees from installing the app, and the state of Montana has become the first state to ban it. Indian officials banned the app in 2020 after a dispute with China over disputed territory.
The UK Office for Students (OfS) has warned universities relying too heavily on tuition fees from China for their income face increasing financial risk. OfS has now contacted 23 universities with major numbers of Chinese students to ensure they have contingency plans to protect themselves from any possible decrease in the number of international students. The risk to universities stems from events that “reduce the flow” of international students to universities. Universities are being advised to develop measures to ensure they can survive any financial losses. Nevertheless, the OfS has stated the financial position for universities remains sound.
The UK is set to announce a ‘semiconductor partnership’ with Japan during a visit by Rishi Sunak to Tokyo today. This partnership is hoped to reduce geopolitical risk by diversifying the UK chip supply chain. This follows the UK releasing a new semiconductor strategy on Friday which outlines the dangers of relying too heavily on a handful of supplier countries. This partnership with Japan aims to include ambitious research and development and skill exchanges, supply chain harmony and the strengthening of each country’s domestic semiconductor sector.
UK Labour leader Sir Keir Starmer has committed to a closer trading relationship between the UK and EU, if Labour wins an election. Car manufacturer Vauxhall has stated it may close factories in the UK, and the costs of electrical vehicle manufacturing in the UK may become unsustainable without changes to the terms of trade with Brussels. The article argues that fears of such outcomes could be alleviated by a government committed to exploiting the practical benefits of post-Brexit freedoms through reducing energy prices, lowering corporate taxes and reducing the burden of red tape. Instead, senior Conservative politicians are said to be embarrassed about Brexit and the project is blamed for causing political and economic issues, according to former UKIP leader, Nigel Farage. The article questions whether Labour sought clarity on issues around the UK’s exit from the EU, or whether it only questioned how its negative impact could be lessened.
UK Chancellor Rishi Sunak has said that he wants to reduce legal migration as figures are expected to balloon to around 700,000 next week. However, Prime Minister Boris Johnson has refused to promise that he will meet his manifesto pledge of getting migration below 2019 levels. Cabinet splits are reportedly emerging, with Home Secretary Suella Braverman calling for more British workers to be trained in industries with shortages instead of relying on foreign workers. Chancellor Jeremy Hunt has said the UK needs to be “pragmatic” about filling shortages with foreign workers. An official report, expected to be released next month, is predicted to show that annual net migration has tripled since the Brexit promise was made in 2019. Sunak was repeatedly asked whether he was committed to reducing net migration to the quarter of a million figure promised in the Conservative manifesto, but declined to say it would be met.
Leaders from the EU, Germany, France and Italy are set to join the G7 summit in Hiroshima, where tensions surrounding China are expected to dominate. While the thread linking the issues of Russia’s war in Ukraine, the Indo-Pacific tensions and the promotion of free market policies on trade is Beijing, negotiations are likely to be tricky; European officials are wary of directly anti-Chinese language, believing engagement with China is the smarter way to address the issue and cautious of creating more of a “west vs rest” global picture. Developing and emerging countries have also reportedly expressed concern that the G7 is focused too heavily on Ukraine and not enough on their needs and priorities.
Before the EU elections next June, Brussels lawmakers are bracing themselves for the mountain of legislation they have to get through, which includes around 200 files still open for approval by MEPs and member states, as well as proposals yet to be presented. With just over a year to go until the European Parliament votes again, including on rules relating to the digital euro and transparency requirements for NGOs, Brussels’ consensus on the new laws’ priority runs the risk of limiting progress on key environmental legislation. Proposals such as the new rules on healthy soils and genomic techniques for plants have already been been delayed or dropped from the commission agenda, to the alarm of EU commission president Ursula von der Leyen, who has warned the EU would struggle to absorb more environmental laws.
Three former UK business secretaries from different parties, Lord Mandelson, Sir Vince Cable and Greg Clark, have accused Chancellor Rishi Sunak of having neither an effective nor visible industrial strategy. Clark said Sunak had never even referred to the subject. Mandelson said the lack of enthusiasm had resulted in a confused policy, while Cable said it had been discontinued due to "ideological zealotry". Senior government insiders admitted the policy was not contained within a single document and was a "comms issue". The role of the state in economies recently has highlighted a difference between European and US approaches.
The blockbuster exhibition China’s Hidden Century, opening this week at the British Museum, places responsibility for the violence inflicted on 19th-century China on Britain and other foreign powers, while exuding admiration for China’s resilience and innovation. Exhibition organisers said their four-year research project involved over 100 scholars in 14 countries, and will “open a new page in public understanding of late imperial China”. Its 300 pieces, half of which have never been seen in public before, cover the Qing dynasty from 1796 to 1912, a period of great upheaval in China, ending when a revolution overthrew the last emperor. However, the exhibition walks a diplomatic tightrope; blame is unequivocally placed on foreign powers for provoking the Opium Wars and thereby sparking China’s traumatic “century of humiliation”, a myth central to the Communist Party’s legitimating narrative of China as a successful state. A reappraisal of 19th-century China threatens this narrative.
Air raid alerts have sounded throughout Ukraine while the military has warned of potential missile strikes due to the ongoing conflict with Russia. Several explosions have been reported in Ukraine’s capital, Kyiv, and neighbouring cities, including Darnytskyi and Dnipro. Warning to take cover have been issued across much of the country, including central and the southern regions. Heavy fighting and territorial gains by the Ukrainian army in Bakhmut have been reported, but the mercenary group Wagner, spearheading the assault, has not reported ammunition shortages, according to Serhiy Cherevatyi, a Ukrainian military spokesperson. The Russian brigade group has continued to fire all available weapons as it seeks to gain control of Bakhmut. Paul Kolbe, the Executive Director of the US Office of the Director of National Intelligence has stated that Moscow’s ultimate aim remains annexing the Donbas region of Ukraine, not war by attrition.
Explosions were reported in several locations across Ukraine, including air raids in the capital Kyiv, leading to many residents taking shelter. Other regions, including Zhytomyr to the west of Kyiv, and Kirovohrad, Cherkasy and Dnipropetrovsk in central Ukraine, also reported warnings. The rocket attacks followed an attack by Russia utilising hypersonic missiles; while the Ukrainian air defences largely succeeded in intercepting the missile attack, falling debris caused a fire in the Darnytskyi district of Kyiv.
The UK Labour Party may build on the greenbelt to provide more affordable housing. Party Leader Keir Starmer believes that current housing shortages are due to a lack of available, affordable homes in desirable areas. Though the Labour government’s willingness to build on green areas may cause some opposition, the party is hoping to prevent people from being pushed out into the countryside or forced to endure extremely long commutes. Surveys demonstrate that such policies are unpopular, though they might highlight far-left beliefs of political progressives and attract the young voters that parties require to maintain public support. Also, over time, green belt encroachment might enable more walkable communities, reducing car travel and emissions. The policy might also help to emphasise Labour’s commitment to environmental policies. Additionally, the UK’s tentative electric vehicle industry seems to be under the threat of collapse. Carmaker Stellantis is warning that its Ellesmere Port factory will close unless the nation renegotiates the terms of its agreement with the EU and German carmakers are also lobbying to retain tariff-free access to the UK.
Former UK Prime Minister Boris Johnson was reported to have launched into a foul-mouthed tirade about French President Emmanuel Macron in reaction to his remarks about the UK’s handling of the Ukrainian refugee crisis after the Russian invasion. Mr Johnson called Mr Macron “Putin’s lickspittle” and allegedly demanded an “orgy of frog-bashing”. The comments were made after Mr Macron criticised the UK during an EU summit held weeks into the war. A spokesman for Mr Johnson stated that he did not recognise the account given by his former colleague.
Former UK Foreign Secretary Liz Truss's trip to Taiwan and her hardline stance against China's communist rulers is consistent with her previous stance on China being a threat to Britain’s national security. Truss's assessment of the threat Beijing poses to Taiwan's future independence, as well as the wider world, deserves serious consideration. Concerns are raised about the pace of submarine construction, with the UK on average building only one nuclear submarine every five years. Even with Aukus, a UK-US-Australia alliance to build new capabilities and alliances to counter the Chinese threat, the alliance has a lot of catching up to do if it is to pose a credible counter-balance to China’s military expansion.
Japanese businesses are to invest nearly £18bn ($24bn) in the UK, chancellor Rishi Sunak has announced ahead of meetings with company bosses in Tokyo, including representatives from Nissan, Toshiba and Mitsubishi Estate as well as UK firms Octopus Energy and Mott MacDonald. The investments include a £10bn plan from Marubeni trading house to boost offshore wind and green energy in Wales and Scotland, and a £4bn offshore wind project expansion off Suffolk and Norfolk by Sumitomo Corporation.
The UK is lobbying the EU to push back the looming deadline for a rule change that could affect the electric car plans of British carmakers. From next year, 55% of the value of an electric car should originate in the UK or EU to qualify for trade without tariffs, rising to 65% in 2027. Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, has warned that it could face tariffs of 10% on exports to the EU due to rules on where parts are sourced from. The company said it was 'now unable to meet these rules of origin' due to the recent surge in raw material and energy costs.
A mishmash of regulations across US states is causing difficulties for businesses. Different state governments have differing views on everything from the production of lifts to running a bank, and have legislated to ban abortions, encourage diversity on company boards or outlaw race discrimination in pursuit of diversity. A US state government's decision to regulate one area of business can have widespread impact given that American firms operate in a country which has a coast-to-coast marketplace that is too important for it to take for granted. “If the trend of state supermajorities persists after the 2024 elections, things could get worse," warns The Economist's opinion column, Schumpeter. Companies' third headache, when it comes to navigating different legislations, is to do with greenery as states introduce contradictory regulations about oil, gas and coal investments. The challenge is compounded by the fact that doing business in the EU may require sustainability reporting, which some in the US find unpalatable.
Giorgia Meloni, the prime minister of Italy, has maintained Italy's Ukraine policy of arming Ukraine and promoting support for the country in Europe, despite its controversy among some Italians. Meloni's stance risks alienating Italy’s partners, including France, which disagree with its hardline policy on illegal migrants and have criticised her party's nationalist origins. However, it offers Meloni the opportunity to prove her political strength and consolidate domestic popularity by adopting uncompromisingly conservative policies, such as opposing the LGBT community.
Over the last year, the western manufacturers of wind turbines have not shared the fortunes of wind-farm operators, mostly due to declines in pricing. The biggest western turbine manufacturers include Nordex, Siemens Gamesa, GE Renewable Energy and Vestas, who make 90% of the market outside China, they all saw combined net losses of nearly $5bn last year, and in recent weeks Siemens Gamesa, Nordex and GE Renewable Energy have all reported losses in the first quarter of this year. Markets have been cooler towards buyers, including large utilities and private infrastructure investors as they have found it more challenging to secure the necessary permits. The selling price per megawatt has fallen from €1m in the mid-2010s to €700k last year. The increase in material prices, geopolitics, supply-chain disruptions and increasing interest rates, among other factors, are adding to the challenges. as there is a growing protectionist mood across Washington and European capitals. Meanwhile, the biggest Chinese turbine company, Goldwind, which installed 12.5 gigawatts of capacity last year, is generating an annual net profit of around $340m.
Ireland's foreign minister, Micheál Martin, says there must be "an open and honest" debate on the country's longstanding military neutrality and if Ireland should join NATO. Ahead of the public forum on the matter next month, Martin highlighted the war in Ukraine and modern threats like cybersecurity and attacks on undersea cables which have raised questions about Ireland's security. Ireland's military neutrality is protected by its constitution, however, a forum involving 1,000 citizens, experts, academic, and service personnel will meet between June 22-27 to decide whether the country needs to redefine or challenge its concept of neutrality.
