Trudeau touches down in South Korea for talks on economic security, China interference
CBC
23-05-16 12:14
Canadian Prime Minister Justin Trudeau and two of his cabinet ministers have arrived in South Korea to lay the groundwork for an economic security bilateral dialogue. Innovation Minister François-Philippe Champagne and Foreign Affairs Minister Mélanie Joly plan to enter high-level talks while there. The trip is viewed as an economic insurance policy where nations look after one another. Diversifying supply chains post-pandemic and resisting economic coercion are among the major topics that will be discussed during this year's meeting of the Group of Seven (G7) nations.
The effectiveness of international sanctions is being challenged as Russia, China and Iran implement alternative financial systems, which blunts the impact of US policies and allows them to hide questionable behaviour. While the alternative financial system is currently limited, more nations will enter Beijing's orbit as China's economy grows, and the alternatives to the dollar will rise in popularity. It is essential that the US revitalises domestic manufacturing and makes and keeps friends. The US must build a coalition of its own to balance Beijing’s growing anti-American coalition, and to keep the dollar as strong as possible.
A group of US senators has proposed the Taiwan Tax Agreement Act of 2023 that would permit tax breaks for Taiwanese investors. The senators said that this will help to increase investment between the US and Taiwan by removing the double-taxation currently in place in relations between the countries. Offering tax relief could inspire further Taiwanese tech firms to move to the US to set up shop, including the construction of a TSMC $40bn plant in the state of Arizona. According to data from the Ministry of Economic Affairs in Taipei, Taiwan invested $23.73bn in the US between 1952 and 2022, the second highest amount after mainland China. Analysis from experts suggested that this move would increase economic, capital, and personnel mobility between the two countries, disrupting China's chip-making lithography machines and shifting the focus into tech collaboration and development based around US-led tax-friendly policies.
Gucci's first post-pandemic runway show took place in Seoul, Korea on Tuesday. The ‘cruise’ fashion show included models accessorised with laptop cases that were designed to attach to the underside of skateboards and blend seamlessly with the South Korean cultural dress codes like Hanbok of young people in the city who dress up to make videos on TikTok. The show's audience included actresses Dakota Johnson, Elizabeth Olsen and South Korean 'Squid Game' actor Lee Jung-jae alongside American rapper A$AP Rocky. Gucci staged the event to appeal to the Korean market, ranked as the top consumer of luxury goods.
South Korea’s President Vows to Expand Non-lethal Aid to Ukraine
Diplomat
23-05-16 15:56
South Korea's President, Yoon Suk-yeol, has pledged to extend the non-lethal aid his country provides to Kyiv, including mine-detection and ambulance equipment. During her meeting with Yoon, Ukraine's first lady, Olena Zelenska, requested an expansion of support for non-lethal military supplies. There was no request for weapons supply, as South Korea has a policy of not providing arms to countries engaged in conflict. Seoul, a growing arms exporter, has so far provided Ukraine with around $230m in aid but has not directly supplied arms as it was hesitant due to concerns that Russia could retaliate by providing advanced weapons to North Korea.
Champagne says Ontario needs to 'pay fair share' to end 'stalemate' with Stellantis
CBC
23-05-16 14:32
The Canadian Minister of Innovation, François-Philippe Champagne, has urged the Ontario government to pay its “fair share” of subsidies for construction of Stellantis's electric vehicle battery manufacturing plant in Windsor. The call comes after Stellantis paused construction due to Ottawa reportedly only partially delivering the promises it made to the automaker. When confirmed, the plant was to have benefited from CAD 500m ($410m) of federal support. The construction pause follows the US Inflation Reduction Act complicating the deal, as it widely benefits the established US initiative.
Ukrainian officials have claimed that their air defence system intercepted six hypersonic Kinzhal missiles which had been pointed at Kiev, evidence which if confirmed, would suggest the country's ability to shoot down the most advanced weaponry from Russia. Ukraine accused Russia of launching an "exceptional" flurry of missiles and drones at Kiev, but said that it had stopped the Kinzhals. Russia claimed that one missile had hit an American-made Patriot system. This is one of Russia's biggest attacks since March, and Russia's chaotic defence system and lack of resources have failed to improve the country's 15-month war strategies.
Taiwan has highlighted the support of Japan, South Korea and the Philippines in forming a "crescent of defense" alongside the US against China's growing presence in the Indo-Pacific region, according to You Si-kun, the speaker of Taiwan's parliament. The countries' opposition leaders have described Taiwan as a key global issue and an important buffer in the region. Philippine President Ferdinand Marcos Jr commented that granting the US access to Philippine military bases was a defensive measure that would be useful if China were to attack Taiwan. The speaker believes that with these countries and the US offering support, a key stabilizer of peace and security in the Indo-Pacific region will be created.
China has been putting increasing pressure on Taiwan to try and force the democratically governed island to submit to Beijing’s sovereignty, with military activities notably on the rise. The speaker of parliament highlighted China’s CCP’s aim for global dominance, with Taiwan seen as simply a stepping stone. It is clear to Taiwanese politicians that being able to rely on external support for the country is critical; However, the article notes that the speaker, a member of Taiwan’s ruling Democratic Progressive Party, doesn’t speak for President Tsai Ing-wen.
This commentary comes as the UK’s first warship (HMS Queen Elizabeth) sails through the contested South China Sea, following a UK official’s recent statement that British naval vessels would be seen more frequently in this region, prompting criticism from China, which claims most of the sea. The UK has declared that its presence is showing its support for international law and freedom of navigation and it will sail its warships where it sees fit, regardless of any objection from China.
Train travel can be the best kind of travel. It's social, cost-effective, comfortable, environmentally-friendly and provides scenic views. It's surprising, therefore, that following the trend in high-speed trains that Europe, America, China and Japan have made, Australia has not invested more in rail, particularly for high-speed long-haul travel and long-haul commuting. While there are relatively low levels of demand, even routes between Sydney and Melbourne have high numbers of passengers, enough to support high-speed rail. Yet Australia seems unable to embrace the joys of train travel in the same way as the rest of the world.
North Korea shows Kim Jong Un examining a military spy satellite that may be launched soon
The Toronto Star
23-05-17 02:05
North Korean leader Kim Jong Un has visited the country's aerospace agency to support plans for the forthcoming military spy satellite launch. There has been no indication of the launch time, however, analysts suggest it may happen within weeks. It would use long-range missile technology that has been prohibited by past United Nations Security Council laws. Although previous missile and rocket tests have revealed the country's ability to deliver a satellite into space, there is doubt as to whether the satellite in question will be adequate for fulfilling reconnaissance requirements. South Korean analysts suggest the satellite produced by the state appears too small and poorly manufactured to support high-resolution images. Nevertheless, acquiring a spy satellite would be important for Kim's efforts to reinforce the country's defence as "US imperialists and (South) Korean puppet villains escalate their confrontational moves" against North Korea; its enemies are now boosting their nuclear deterrence strategies to deal with the threat from North Korea.
US President Joe Biden is expected to emphasise unity and Washington's dedication to the Asia-Pacific during his planned trip for the G7 Summit in Japan whilst navigating a delicate balance between countering China's economic coercion and avoiding further division among US allies. Biden also seeks to build a "little Nato" in Asia to contain Russia and China. While the G7 is expected to outline proposals on countering China's "economic coercion", it is important to not inflame nationalistic tendencies or put smaller countries in a difficult position where they become the target of coercive activities. The trick, according to experts, is to build more robust trade agreements, maritime security measures, and reinforcing supply chains rather than setting up divisions. China carried out 73 incidents of economic coercion aimed at 19 countries between 2020 and 2022, including trade sanctions, investment restrictions, tourism bans and popular boycotts.
Australia’s treasurer Jim Chalmers has received criticism from opponents over the country's first budget surplus in 15 years, who claim the economic rebound and surging commodity prices made it an easy feat. Chalmers admitted that the return to balancing the books would only be temporary, with mounting defense, welfare, and energy transition bills to contend with. The country’s net debt position will rise to more than A$700bn by 2027, and concerns remain over how long commodity prices can sustain momentum with China's slowing growth. Observers suggested that more was needed to reshape Australia’s economy, with calls for more fiscal discipline. Danielle Wood, chief executive of the Grattan Institute think-tank, claimed there was a “pretty stubborn gap” between revenue and spending forecasts, requiring further action to address the structural deficit. Spending on defense is expected to rise to more than AUD50bn ($33.51bn) in the 2024 budget year, while the cost of the country’s disability support scheme is anticipated to increase from AUD35bn to AUD56bn in the 2027 budget year.
Chinese companies are targeting South Korean talent as Beijing seeks to build up its technical abilities in key areas such as electric cars, semiconductors and exports including shipbuilding. The moves have reportedly intensified since Washington began restricting Chinese access to American technology and expertise. Strategies by Chinese firms have included both legal and illegal means of attracting skilled professionals including “tech leakage” and patent violations. Korea is creating a database of chip engineers at the country’s companies to monitor their travel in and out of the country, and has passed legislation to toughen punishments for leaks.
A Group of Seven summit is expected to face significant tensions on the issue of nuclear disarmament. Many atomic bomb survivors in Hiroshima fear that the summit may be the last time that world leaders will call for disarmament. For those in the West, Russia's invasion of Ukraine has reminded them of the important role played by nuclear deterrence. The summit is also expected to discuss ways of curbing nuclear programmes in Iran and North Korea. Barack Obama, the last US President to visit Hiroshima, chose the city as an opportunity to express his hope for a world without nuclear weapons.
A US nuclear-powered ballistic missile submarine is expected to make a port call in South Korea for the first time since 1981. The visit was agreed upon by US President Joe Biden and South Korean President Yoon Suk Yeol as part of the Washington Declaration to enhance the "regular visibility" of strategic assets in the Korean peninsula.
Russian missile strikes on May 16 may have damaged the US-made Patriot missile defence system, which is currently used by Ukraine, according to two anonymous US officials. Though the system has not been destroyed, the two countries are reportedly discussing the best way to repair it without having to remove it from Ukraine. The alleged damage follows a warning from Vladimir Putin to target and destroy anti-missile defence systems supplied by the West to Ukraine. The Patriot system is designed to counter a range of threats, from ballistic missiles and cruise missiles to aircraft.
Russia has been ramping up the number of missiles it fires in order to confuse and overwhelm Ukraine’s air defences. However, according to one US official, this may have worked to Ukraine’s advantage as it forced Russia to go through more of its limited supply of precision weaponry that can home in on targets. Meanwhile, Ukraine’s President Volodymyr Zelensky spoke at a summit of the Council of Europe, where he said that recent battlefield successes showed that Ukraine could achieve anything as long as it was united. These included shooting down 18 Russian missiles overnight, including a volley of six Kinzhals, which Russia claims have hypersonic capabilities.
The UN Secretary-General, António Guterres, has called on world leaders at the G7 summit, which begins on Friday, to pledge not to use nuclear weapons and to commit to global disarmament. Speaking ahead of his trip to Hiroshima, he described Japan as a “particular moral authority” on the subject, as the only nation to have been attacked with nuclear weapons. Guterres also expressed concerns about the potential weaponisation of AI, stating that the idea of “arms systems without any human agency is totally unacceptable.”
Despite operating at 78% of pre-Covid capacity and carrying almost 10 million fewer passengers, Singapore Airlines has reported record annual results. The carrier's airfares remain elevated and it has seen strong bookings for China, Japan and South Korea. Meanwhile, Hong Kong's Cathay Pacific still has a way to go before reaching pre-pandemic levels, with last year's revenue only about half of what it was before.
North Korean leader Kim Jong Un has visited a military satellite facility and approved an unspecified "future action plan" aimed at launching the country's first military intelligence satellite, according to the country's state-run Korean Central News Agency. The launch would have to use long-range missile technology, which is banned by UN Security Council resolutions. The visit was Kim's first public appearance in a month. Some analysts predict the launch could happen in the coming weeks. Japan's military has ordered troops to get ready to shoot down satellite fragments that may fall on its territory.
As India prepares to overtake Germany and Japan as the world's third-largest economy, the country's potential for growth is considered by different economists from opposing perspectives. Narendra Modi's pro-business government has invested in initiatives such as digitisation, whilst critics claim the country suffers from the underinvestment in human capital first outlined by Nehru, resulting in an economy that fails to produce enough jobs or skilled workers. Meanwhile, Whole Numbers and Half Truths by Rukmini S provides an empirical look at India's complex society, covering all aspects from consumption to employment and identifies underemployment as behind India's relatively low official jobless rate.
