Former UK Prime Minister Liz Truss has called on Chancellor Rishi Sunak to dub China a “threat” to UK national security during a trip to Taiwan, making her the first former prime minister to visit Taiwan since Margaret Thatcher. Truss drew parallels between the tensions between China and Taiwan, and the Russian invasion of Ukraine, and urged the West not to collaborate with China, accusing totalitarian regimes of “not telling the truth”. During the Conservative Party leadership contest, Truss claimed that she would take a firm stance against the Chinese government and wished to classify it as a threat to UK national security. Her plans were never enacted after her short-lived time in No 10. Sunak labelled China as “the biggest long-term threat to Britain” during his leadership and pledged to close Beijing’s Confucius Institutes in the UK. The UK government is expected to guarantee that it will stop funding Mandarin teaching in the institutes. Despite this pledge, Truss prompted Sunak to deliver on the pledges to clamp down on China he made last summer. China described Truss’s visit to Taiwan as a “dangerous political stunt” that would harm the UK.
Global public finances are being hit by an ageing population with ratings agencies warning that higher pension and health care costs are rising along with recent interest rate hikes. Moody’s, S&P and Fitch have all warned that ongoing issues with demographics are already impacting government credit ratings with little hope for change unless there are sweeping reforms. These downgrades could lead to a vicious circle of increased fiscal burdens and a rise in borrowing costs.
China is attempting to persuade both sides of the Ukraine conflict to resume negotiations, casting itself as a neutral and helpful global leader. This move comes as China becomes increasingly pessimistic it can prevent the deteriorating US-China relations. While Beijing wishes to preserve its relationship with Russia, it fears that its position viewed as pro-Russia will poison its reputation in Europe, further harming its security environment. As a result, China has attempted to be neutral and offer its good offices to bring both sides to the negotiating table.
The Ukrainian conflict presents complicated challenges for China, potentially strengthening US alliances in Europe and beyond. As a result, Beijing has begun to offer its good offices to resolve the crisis, articulating a vision for global security and becoming more involved diplomatically. China aims to position itself as neutral and limit its support for Russia, even as it prioritizes its partnership with its closest strategic partner.
Recent remarks by the Chinese ambassador to France that the status of Crimea depends on how the problem is perceived provoked widespread condemnation, and 80 European lawmakers urged the French government to expel the ambassador. The Chinese government tried to downplay the situation, stating that the ambassador was only expressing his personal views. China is likely to do just enough to cast itself as a helpful and responsible global leader but not enough to be held accountable for achieving an end to the Ukraine conflict on terms that would be fair and acceptable to both sides.
Former UK Prime Minister Liz Truss, who served from September to October 2022, has embarked on a globe-trotting tour, using her status to call on Western leaders to face up to China. Truss is calling for an “economic NATO” to form, one that would focus on countries facing resistance from Chinese interests. The former prime minister has recently appeared at the Copenhagen Democracy Summit and, days later, as a guest of the Taiwanese government. Her policy proposals have met with approval from foreign policy hawks. However, Truss' vision of low taxes may not sit well with others in her Conservative Party. She is emblematic of the challenges of politics without policy, with her approach still too common in the Tory Party. There are also concerns that the former prime minister may be viewed by China as representing the UK government. Thatcher was the last to visit Taiwan in 1996.
UK Prime Minister Rishi Sunak said he is considering following President Biden's lead and restricting domestic companies from investing in critical industries in China. Sunak said he was "engaged in a dialogue" with the US and that UK authorities are carrying out "policy thinking on that particular area". Biden has indicated he is considering issuing an executive order to create a screening mechanism for outbound US technology investment, making it harder for China to obtain cutting-edge technology. Sunak said that a joint action over tougher controls on western investments in China was a "work in progress and would not be agreed at the G7 summit".
UK Prime Minister, Rishi Sunak, has said that he is considering following the US's lead by imposing new restrictions on domestic companies investing in critical industries in China. US President, Joe Biden, has been drawing up a plan to limit investments in key parts of the Chinese economy, which is yet to be announced. Sunak also mentioned that placing further export controls on China would also be discussed at the G7 gathering. Meanwhile, Sunak has backed away from his promise to ban Confucius Institutes from operating in Britain in an attempt to improve UK-China relations.
The UK and Japan are set to deepen their security ties and sign a new accord called the "Hiroshima Accord," covering areas such as defence, trade and investment, science and technology, and joint initiatives to tackle global issues such as climate change. As part of the deal, the UK, which is looking to deepen relationships with countries outside Europe after leaving the EU, has committed to deploying an aircraft carrier strike group to the Indo-Pacific in 2025. The two countries will also agree on a formal "Consult Clause," while trade and investment as well as science and technology programmes will be supported under the agreement.
Leaders from Australia, Brazil, Comoros, Cook Islands, India, Indonesia, South Korea, and Vietnam are to attend the Group of Seven summit (G7) in Hiroshima this year, along with the leaders of the G7 nations. Japanese President Fumio Kishida has a determination to make nuclear disarmament and non-proliferation priorities of this year’s summit, with discussions expected to centre on Putin's threats against Ukraine and China's increasing threats against Taiwan.
Hong Kong's "Hello Hong Kong" scheme, aimed at reviving tourism, saw more than 100,000 would-be holidaymakers attempting to claim free Cathay Pacific round-trip tickets from North America. Awarded on a first-come, first-serve basis, the nearly 2,900 flights from the US and Canada are among 700,000 being given away in the government's bid to bring at least 1.5 million tourists to the region after three years of Covid-19 travel restrictions. The Hong Kong Airport Authority last year bought 500,000 tickets from airlines to support the industry and promote recovery from the pandemic lockdown.
Column: Investors favor Japan's rising sun over China's fading star: McGeever
Reuters
23-05-18 00:21
Bank of America's latest surveys, reissued Wednesday, shows investors both in favour of Japanese equities and selling off Chinese assets amid changing economic fortunes for both countries. While Japanese stocks are now at levels not seen for over 30 years, Chinese assets - particularly bonds - are falling out of favour among investors as the country's economic growth slows.
Micron Technology is set to receive around $1.5bn in government incentives from Japan to manufacture next-gen memory chips. The company intends to use the cash, which will mark the arrival of EUV equipment to the country for the first time, to introduce a facility to fabricate DRAM chips with plans to launch the more advanced one-gamma production in late 2024. The incentives form part of Japan's move to bolster domestic semiconductor production, something that would provide a backup to Taiwan amid growing tensions between China and the US. Mini-app Rapidus, meanwhile, plans to make 2-nanometer chips by 2027.
The Philippine military chief visited navy officers in the Palawan province, and told his troops they have a "very important" role to play in guarding Philippine waters against intruders, amid increasing tensions in the South China Sea. Andres Centino reminded his troops that their objective is to "ensure there is peace", and assured them of more resources and troops to shift the country's focus from internal security to territorial defence; escalating tensions in the region caused Manila to require a strategic shift. Manila has started building a 3km runway at the Balabac airbase, one of four sites the United States has been given access to under the Enhanced Defence Cooperation Agreement.
The Group of Seven countries and the European Union will meet in the western Japanese city of Hiroshima next week. As well as the Ukraine war and the growing dominance of China and the threat to Taiwan, issues surrounding supply chains, economic and energy security are set to be discussed. Several Asia-Pacific countries, including India, Indonesia, South Korea, Vietnam and Australia, will be joining the group. Additionally, the attendance of India is likely to highlight developing nations.
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.
The Inflation Reduction Act, signed into law by US President Joe Biden in August, has spurred a subsidy race and rankled foreign allies and global companies with its economic protectionism. Despite prompting concerns from some G7 leaders and global CEOs, Japanese officials have agreed a trade deal with the US to expand eligibility for EV tax credits. Tesla has declared a strategy shift centred on the Act’s incentives while Mercedes-Benz and Audi are looking to invest further in the US. However, some of the biggest global drugmakers are preparing to fight the Act’s plan to negotiate Medicare drug prices.
Former UK Prime Minister Liz Truss has called on the "free world" to support Taiwan, and urged Britain to rethink its economic ties with China. Speaking during a five-day visit to the island, Truss said: "Things are shifting. If you remember, under the David Cameron and George Osborne era we were talking about the golden era with China." The comments come at a time of heightened tensions between China and Taiwan, and amid growing international scrutiny of China over issues such as human rights and its handling of the pandemic.
Taiwan is still hoping to receive an invitation to the World Health Organisation’s annual assembly, which commences on 21 May in Geneva, despite China still opposing the invitation of the democratically governed island. Despite opposition, several of Taiwan’s diplomatic allies have issued statements offering support for their participation, allowing for several bilateral meetings with the country. In response to China blocking Taiwan’s World Health Assembly participation in 2017, Taiwan pursued a diplomatic campaign to attend the global health forum as an observer. Researchers have suggested that Taiwan’s exclusion from the WHO could have hindered efforts to fight the COVID-19 pandemic.
Leaders from seven of the world's wealthiest democracies and the EU are meeting at this year's Group of Seven (G7) summit, which kicked off on Friday in the Japanese city of Hiroshima. The talks are expected to cover tensions in the Asia-Pacific following the exclusion of China from the summit, with much of the early attention focused on growing fears over North Korea's nuclear programme. The situation in Ukraine and Britain's EU referendum will also feature on the summit’s agenda.
Leaders of the Group of 7 nations are to meet in Hiroshima, Japan, to discuss issues including Russia’s war in Ukraine and China. Although there is little disagreement among G7 members on either issue, there is a difference of opinion between the nations and other countries, including Brazil, China, India, Russia and South Africa. Eight non-G7 guest nations will attend the summit, which will provide an opportunity for Japan to outreach to the so-called Global South. China will also be discussed at the meeting, with Tokyo claiming that it poses the biggest challenge to “the free and open international order based on the rule of law.”
From Ukraine war to China’s rising power: 5 reasons this G7 matters
CNN
23-05-18 08:48
The leaders of the world’s most advanced democracies will meet in Hiroshima today to discuss the ongoing conflict in Ukraine and emerging threats from China. The meeting’s location has placed nuclear arms at the top of the agenda, with the Hiroshima Peace Memorial Museum looming close by. The museum reminds visitors of the risks of nuclear war with dozens of exhibits, including timepieces stopped at 8.16am, the exact timing of the atomic bomb that was dropped on the city in August 1945 by a US Army Air Force B-29 bomber. Global risk monitors, the Bulletin of Atomic Scientists, states that the Doomsday Clock, an annual indicator of how close the world is to nuclear disaster, now stands at 90 seconds to midnight, an unprecedentedly dangerous rating; Russia’s war on Ukraine is cited as a major cause, together with Chinese weapons building, and a North Korea testing nuclear capable missiles.
