Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Monday 20 November 2023

Saudi Arabia-China currency swap agreement

The Saudi Central Bank (SAMA) has signed a three-year currency swap agreement with the Central Bank of China, marking a milestone in financial cooperation between the two nations.

The accord establishes a maximum swap value of 50 billion Chinese yuan.

This strategic agreement reflects the commitment of both central banks to enhance collaboration and strengthen ties founded on mutual interests.

The three-year duration underscores the long-term nature of this financial partnership, showcasing the enduring commitment of Saudi Arabia and China to bolstering their economic relations.

Saturday 18 November 2023

A new cold war the world is getting used to

According to Shawn Donnan of Bloomberg, the relationship between the United States and China is the most important and arguably most fraught in the world today. The meeting between Joe Biden and Xi Jinping near San Francisco was unequivocally the most important event in the global economy this week.

The summit did what was intended by both sides. It put a floor under the relationship and re-established lines of communication. The danger of tensions spiraling out of control seems less today than they did a week ago.

It was hard to be in San Francisco digesting the geopolitical theater and not come to the conclusion that this is what a 21st century Cold War looks like.

Jude Blanchette, a longtime China watcher based in Washington, was prescient when he said ahead of this week’s meeting that managing a geopolitical rivalry isn’t sexy. It’s full of small but important steps that never really resolve the fundamental differences. And that’s what we got.

The two leaders agreed to resume communications between their militaries and to work together to stem the flow from China to the US of precursors and pill presses that are fueling America’s fentanyl crisis. There were agreements before and during the summit to work together to address the climate crisis and mull the consequences of artificial intelligence.

The fundamental differences between the two nations won’t go away. One is a democracy, the other a single-party Communist state. One has a market economy, the other an increasingly state-directed one. They are both in a competition that many on either side see as existential.

Xi deployed a smile rarely seen at home and sought to charm US business leaders who gave him a standing ovation. He pledged to send pandas that China had recalled just weeks before.

Biden rolled out a picture of a young Xi in front of the Golden Gate Bridge and sought to make him comfortable. But he also couldn’t resist doubling down and calling Xi a dictator again after he had left, laying it out as a plain factual label rather than a potential slight.

How this all plays out in 2024 with presidential elections coming in Taiwan in January and the US in November isn’t yet scripted.

Economics matter if it is power you want. Biden went into the meeting with the wind at his back as one US official put it thanks to an economy that has recovered better than its peers from the pandemic shock. And Xi was clearly on a charm offensive given the foreign investment he needs to turn around a slowing Chinese economy.

That could change in the months to come. There are signs the US economy is slowing. Consumers are still grumpy about inflation and more recently the higher interest rates deployed to rein it in.

Both sides have their own weaknesses, in other words. Xi has an economy undergoing a structural slowdown based in large part on demographics. Biden has an economy which many Americans still aren’t convinced works for them.

Historians will get to decide in the years to come whether this week’s meeting marked a turning point. But, regardless of whether they decide history turned or not, they very likely will agree we are living through a cold war that we’re all just getting used to.

 

Saturday 11 November 2023

Pakistan-China Joint Naval Exercises

The opening ceremony of the Pakistan Navy and PLA (Navy) bilateral exercise Sea Guardian-2023 was held at the Pakistan Navy Dockyard, Karachi.

Commander Qingdao Naval Base, Rear Admiral Liang Yang graced the occasion as Guest of Honour. Commander Pakistan Fleet, Vice Admiral Muhammad Faisal Abbasi was also present at the occasion.

In his opening remarks, Vice Admiral Muhammad Faisal Abbasi welcomed the officers and personnel of PLA (N) Flotilla, underscoring the close and strategic ties between the two countries in general and Navies in particular.

The admiral emphasized the importance of immaculate and sound planning during the exercise and hoped that this exercise would further enhance strategic cooperation and interoperability between the two navies.

In his speech, Commander Qingdao Naval Base Rear Admiral Liang Yang thanked the Pakistan Navy for hosting Exercise Sea Guardian and hoped to have a mutually beneficial and professionally rewarding experience from the joint exercise.

Earlier, the Chinese Flotilla comprising of naval ships, Submarine and Submarine Rescue Ship along with PLA (Navy) Marines Corps Detachment, arrived in Karachi to participate in the exercise.

During the exercise, frontline destroyers/ frigates along with Air and other assets and Marines/ Special Forces from Pakistan Navy and PLA (Navy) will carry out advanced-level joint drills and naval maneuvers in the North Arabian Sea besides professional and social activities during the harbor phase.

The objective of Exercise Sea Guardian-2023 is to share professional experiences on contemporary traditional and non-traditional threats in the Indian Ocean Region as well as to enhance bilateral cooperation and interoperability between the two Navies.

The exercise is a reflection of strong bilateral military cooperation between the Pakistan Navy and the Chinese Navy and will foster greater bilateral cooperation between the two navies.

 

 

Tuesday 7 November 2023

Iran and China reach new agreements

Iranian Finance and Economic Affairs Minister Ehsan Khandouzi said the 25-year strategic partnership plan between Iran and China has entered a new phase with new agreements being reached between various ministries of the two countries, IRIB reported.

According to Khandouzi, the mentioned agreements have been reached between the two sides during the visit of Iran’s delegation to the 6th China International Import Expo (CIIE).

“Specific projects were defined between the government departments of the respective ministries of Iran and China, and agreements were reached on the details of the implementation of the mentioned projects,” Khandouzi said.

Regarding the private sectors of the two countries, some Iranian companies operating in China and some large Chinese companies operating in Iran faced obstacles, which were discussed and resolved by the relevant authorities, he explained.

“We are going to witness a significant growth in economic cooperation and investment between the two sides with the implementation of these projects,” the minister noted.

Headed by Iran’s First Vice President, Mohammad Mokhber, a senior delegation comprised of Economy Minister Ehsan Khandouzi, Industry, Mining, and Trade Minister Abbas Aliabadi, as well as the deputies of various ministries and the economic deputy of the Ministry of Foreign Affairs visited China last week to attend the 6th CIIE.

Iran and China officially signed the document for 25-year comprehensive cooperation in March 2021.

The document was signed between Iran’s former Foreign Minister Mohammad Javad Zarif and Chinese Foreign Minister Wang Yi at the Iranian Foreign Ministry.

Back in December 2022, Iran and China finalized 16 memorandums of understanding (MoU) under the framework of the two countries’ strategic 25-year agreement.

The MoUs were signed in an Iran-China comprehensive cooperation program summit which was held in Tehran on December 13 in the presence of Iran’s First Vice President Mohammad Mokhber and China’s Vice Premier Hu Chunhua.

The summit was focused on four areas explored by four committees between the two countries with the aim of paving the way for the implementation of the 25-year agreement.

Iran and China also signed 20 memoranda of understanding in the presence of the presidents of the two countries in Beijing in mid-February.

Heading a high-ranking delegation, Iran’s President Ebrahim Raisi was on a three-day state visit to China starting February 14.

During President Raisi's visit to China, Tehran and Beijing signed a number of bilateral cooperation documents in the fields of agriculture, trade, tourism, environmental protection, health, disaster relief, culture, and sports.

The documents include agreements in the field of transportation and industry worth US$12 billion and US$3.5 billion, respectively; the agreements cover various joint projects like the high-speed rail link between Tehran and Mashhad, and investment in the Imam Khomeini Airport City.

Investment in Iran's southeastern Mokran Coast and the purchase of Iranian oil were also mentioned in the documents.

Raisi's visit served as an example of the high level of mutual trust between China and Iran, as well as a milestone for bilateral ties.

Then in mid-July, the agreements signed between Iran and China during President Raisi’s trip to Beijing in mid-February were turned into specified projects during the two countries’ joint cooperation committee meeting, the Iranian finance and economic affairs minister announced.

Ehsan Khandouzi left Tehran for Beijing on July 12 to attend the Iran-China Joint Cooperation Committee meeting, which was held after four and half years.

“With the constructive atmosphere of the committee, we will soon witness good events in the fields of business and investment”, the official wrote on his Twitter account on July 16.

Khandouzi further announced that Iran and China are going to begin the execution of some joint projects agreed upon in February by the presidents of the two countries, as of the following month.

According to the minister, the necessary follow-ups regarding the mentioned projects have been made over the last five months and the final decisions for the start of their implementations were made during a joint business event on July 13.

“President Raisi had an important trip to Beijing last winter and good agreements were made with the president of China; in this regard, the necessary follow-ups were made by various ministries during the last five months, and on Thursday (July 13) the first joint committee between Iran and China was held after 4.5 years,” Khandouzi said.

“China is Iran's largest trading partner and the most important destination for the export of Iranian goods and an important part of our imports are also from China. Last year, China's share in Iran's (non-oil) trade was 24 percent,” the minister added.

Back in early April, the Chinese ambassador to Tehran said, "This year is a good year for Iran-China relations."

Chang Hua made the remarks in a meeting with the members of the Iran-China Joint Chamber of Commerce and a number of Iranian traders and businessmen, who conduct trade with China, held at the place of the Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) in Tehran.

Referring to China's growing economy, the envoy said this year is a good year for Iran-China relations, adding that during the meeting between the leaders of the two countries, important agreements were made, including the implementation of the 25-year cooperation agreement between the two countries, and a number of bilateral cooperation documents were signed in the fields of agriculture, tourism, culture, relief, and rescue, etc.

Majid-Reza Hariri, the head of the Iran-China Joint Chamber, also emphasized the desire of Iran's private sector to develop business relations with China and said there are obstacles in this direction. Among other things, issuing visas for Iranian businessmen, especially for their presence at trade fairs in China, is associated with problems, and facilitating it will definitely help the development of relations between the two sides.

 

 

Monday 6 November 2023

Declining Chinese investment in US Treasury holdings

China continues to pare its holdings of US Treasuries, leading to market speculations over its motives. The country's stockpile of US government debt hit the lowest level in 14 years at the end of August 2023, with the pace of decline accelerating.

Some analysts said Chinese monetary authorities are leading the move to shore up the yuan, while others blame it for a recent bond rout in the United States.

"Maybe China is behind the rise in US long rates," said Apollo Global Management economist Torsten Slok in a blog posted in early October, when yields on long-term US bonds reached a 16-year high.

China's Treasury holdings started falling steadily after peaking in 2013.

The balance of US Treasurys held by China totaled US$805.4 billion in August, down 40% from a decade earlier, according to data from the US Treasury Department.

China once actively bought the securities with its ample foreign exchange reserves, becoming the second-biggest foreign investor in US Treasuries after Japan. Given the size of its holdings, China's selling could roil US bond prices, pushing up interest rates.

Not everyone, however, agrees with Slok's views, contending that China could just as easily move its holdings to overseas custodians without selling them. Yet many analysts focus on the decline in the country's Treasury balance as a sign of Beijing's strong determination to defend its own currency.

China is facing serious capital flight caused by rising concern about its economic growth and debt burden. In September, capital outflows reached US$75 billion, the biggest such monthly amount since 2016, according to an estimate by Goldman Sachs. This exerts strong downward pressure on the yuan, which now trades at around 7.3 against the dollar, the lowest since 2007.

"China's state-run banks likely dumped the dollar around October 01, National Day," said a currency trader at a foreign bank, echoing the views of his peers. It appears that Chinese authorities urged state-run banks to shore up the yuan against dollars and they responded by selling Treasuries to raise needed funds.

Beijing has spent hundreds of billions of dollars out of its foreign exchange reserves on market interventions since 2015, when its devaluation of the yuan led to declines both in stock and currency prices.

Eager to maintain the current level of foreign reserve balances, Beijing may have pushed state-owned lenders to support the yuan on its behalf, according to analysts.

The yuan's daily reference rates announced by the People's Bank of China show the sense of crisis being felt by authorities. While the gap between the reference rate and the market value has widened to a record level, the official midpoint remains pegged at 7.17 to the dollar since mid-September. As China allows the yuan to fluctuate only within 2% on either side of the midpoint, it looks as if the country has reverted to a fixed-rate system.

Taking advantage of the country's lower interest rates spurred by monetary easing, some speculators engage in carry trade by borrowing in yuan and converting the money into currencies with higher interest rates. Goldman Sachs has proposed clients use borrowed yuan to fund bets on higher-yielding currencies like the Brazilian real and other South American money.

As speculators seek profits by selling the yuan to buy other currencies, an increase in carry trade could further weaken the Chinese currency. Many analysts expect that if such speculative trading increases, Chinese authorities will have no choice but to step in to bolster the yuan -- possibly by unloading Treasuries.

However, the country's foreign currency reserves -- the source of Treasury purchases -- are unlikely to increase as in the past as export growth slows and the amount of foreign investment declines. Efforts by Western countries to de-risk economic ties with China have only begun to take effect.

If China continues to trim its Treasury holdings, market players may see it as a factor pushing up bond yields and thus as a matter of concern for the US Federal Reserve. The unsteady Chinese economy has added yet another unpredictable variable to global financial markets.

 

Tuesday 31 October 2023

Isolating Iran No Longer Possible

The US President Joe Biden is convinced that one of the reasons Hamas launched the attack on Israel was the announcement during the G-20 Summit in New Delhi on the India-Middle East-Europe Economic Corridor .

Biden has been telling so many lies to reclaim its leadership role in the Muslim Middle East. The two most compelling realities rejecting the American leadership are: one, a strong united regional solidarity cutting across sectarian divides to seek a settlement on Palestine, like at no time before, and, two, the Saudi-Iranian rapprochement. 

The latest developments involving Hamas and Israel undermined the US efforts to persuade Saudi Arabia to recognize Israel. No doubt, the Saudi stance on the Palestine problem has hardened.

Do these words sound as if Biden is preparing for a war with Iran? For the first time, perhaps, there is a ray of hope that the US will no longer work around the Palestine problem. The bottom line, as the deliberations at the UN Security Council also testify, is that all responsible powers understand that the Middle East continues to be the centre of gravity in world politics and a conflagration in the region could easily turn into a world war. And none of the big powers wants such an apocalyptic outcome. 

That said, while the US still has unrivalled power in the Middle East, its influence has diminished, as new realities emerged which include:

Israel has grown more powerful militarily and economically vis-a-vis Palestinians, but no longer enjoys regional dominance. 

Saudi Arabia and the UAE, two dominant powers in the Middle East, are increasingly asserting their own interests. 

China, although a relatively new player, is no longer confining itself to economic diplomacy. 

US has lost the capacity to leverage the world oil market, as Russia works closely with Saudi Arabia within the ambit of OPEC Plus to calibrate oil production level and prices. 

Consequently, petrodollar is weakening.  

The Abraham Accords have been shelved practically. 

The Arab-Israeli conflict has assumed new dimensions in the recent years, thanks to the ascendance of the axis of resistance, which require new postures and operational thinking on the part of the US. 

Israeli politics has swung sharply to extreme right. 

The global environment is highly complicated; the peace process can no longer be under US mentorship.

Russia hosted a trilateral meeting in Moscow with Iran’s deputy foreign minister  and a Hamas delegation. Later, Russian Deputy Foreign Minister Mikhail Bogdanov, who is also Special Presidential Envoy for the Middle East and Africa, announced that Palestinian leader Mahmoud Abbas will soon arrive on an official visit to Moscow for talks with Russian President Vladimir Putin.  

In an all-out war with Iran, the US will take heavy casualties and the state of Israel may face destruction.

Iran may opt for nuclear deterrent capability. It is a near-certainty that a US-Iran war will turn into a world war. Clearly, war is not an option. 

There is high risk, therefore, in an Israeli ground invasion of Gaza. If Israel gets bogged down in Gaza, which by no means cannot be ruled out, there is a high possibility that Hezbollah may open a second front. And that, in turn, can trigger a chain reaction that may spin out of control. There is a danger if a ceasefire is not agreed upon early enough in the conflict, the repercussions could be very serious.

 

Friday 27 October 2023

Iran: Chinese investment in railway and renewable energy projects

First Vice President of Iran on Thursday discussed the strengthening Tehran-Beijing ties with Premier of the People’s Republic of China Li Qiang in Bishkek, Kyrgyzstan. The meeting was held on the sidelines of the 22nd session of the Council of Heads of Government of the Shanghai Cooperation Organization (SCO). Iran officially became a full member of the SCO in April 2023.

Mohammad Mokhber said the relations between Iran and China rooted in history and culture and said Iran has extensive capacities and capabilities that can be put to use in the two countries’ ties. 

Mokhber announced that Iran sees the development of ties with China as extremely important. “The development of Makran and Chabahar coasts, the construction of 15,000 megawatts of renewable power plants, mining development, Tehran-Mashhad and Tehran-Isfahan high-speed train projects, and transit cooperation in the west and east are all on Iran's agenda, and we welcome China's participation and investment in these areas,” the official noted. 

The vice president also emphasized the full implementation of the 25-year cooperation agreement between Iran and China. The deal signed in 2021 includes economic, military and security cooperation.

Mokhber also took the time to thank Beijing for its stance on Israel’s brutal attacks on Gaza which have so far resulted in the death of more than 7,000 civilians. 

“The bitter events in Gaza and Palestine hurt the heart of every noble, free, and conscientious person, and unfortunately, in the current chaotic situation and war crimes being committed by the Zionist regime in Gaza, most of the casualties are among civilians, women, and children”. 

The Chinese premier, for his part, described Iran as one of the major and influential countries in the West Asian region. “Iran's full presence and membership in Shanghai and BRICS will strengthen these organizations and be very useful for regional and global peace and stability,” he said. 

“The relations between the two countries have always had a growing trend since the establishment of political relations fifty years ago, and this year important agreements have been concluded between Tehran and Beijing with two meetings between the presidents of the two countries,” Li said, adding that Beijing regards Tehran as an important partner and seeks to further enhance ties with the West Asian country. 

 

Friday 20 October 2023

US ultimatum to Prime Minister of Bangladesh

According to a report by The Bangladesh Chronicle, the US Deputy Assistant Secretary Afreen Akhter is believed to have conveyed the US government’s message to the Awami League regime; constitutional expert Shahdeen Malik says Hasina will defy such a move

The ruling Awami League government has been told in no uncertain terms by a senior United States official, who recently visited Dhaka, that the Sheikh Hasina regime may consider stepping down from power and hand over charge to the Jatiya Sangshad speaker by November 03, 2023.

Given the high stakes that are involved, it is unlikely that the Awami League in general and Sheikh Hasina in particular will readily comply with the US pressure to relinquish power, especially at a time when there is massive anti-incumbency besides grave charges of corruption, human rights abuses, malgovernance, among other issues, against the current regime.

It is believed that the message was conveyed to senior Bangladeshi officials by American Deputy Assistant Secretary (South Asia and Central Asia) Afreen Akhter during her meeting with Bangladesh foreign secretary Masud Bin Momen on October 16, 2023.

Besides raising the fraught issue of free, fair and participatory elections in Bangladesh, Akhter also discussed with the subjects of Rohingya refugees and the recent visit of a bipartisan American delegation comprising members of two important American think tanks with Momen, who confirmed this to reporters later the same day. Bangladesh Ministry of Foreign Affairs director general Masud Alam was present during the meeting between Akhter and Momen.

The Bangladesh foreign secretary had reacted sharply, saying, “Bangladesh objects to unnecessary foreign interference in its internal affairs”.

The sources said that Akhter placed two options before her Bangladeshi hosts, eight days before Sheikh Hasina is set to leave for Brussels on an official tour. As part of the first option, Sheikh Hasina government could resign and hand over charge to President Mohammad Shahabuddin who, incidentally left for Singapore on October 16 and is not expected to return to the country before October 30.

The last session of the Jatiya Sangshad is set to begin on October 22 and the government of the day will likely declare the official election notification in the last week of this month or the first week of November.

The second option, the US official presented before Momen and Masud, recommended transfer of power by the incumbent Awami League government to Speaker Shirin Sharmin Chaudhury by November 03 before paving the way for a truly free, fair, participatory and inclusive elections.

“The US prefers that the Sheikh Hasina regime opts for the second course,” a source, fully aware of the details of the American proposals, said.

Chaudhury was in New Delhi last week to take part in the Ninth G20 Parliamentary Speakers’ Summit. She had met Indian officials on the sidelines of the Summit.

The bases of the two options presented before the Bangladeshi leadership was that both were within the framework of the Constitution and therefore could be acted upon and considered by the government.

Chapter II of Part IV of the Bangladeshi constitution says:


“(1) The office of the Prime Minister shall become vacant
(a) if he resigns from office at any time by placing his resignation in the hands of the President; or (b) if he ceases to be a member of Parliament.
(2) If the Prime Minister ceases to retain the support of a majority of the members of Parliament, he shall either resign his office or advise the President in writing to dissolve Parliament, and if he so advises the President shall, if he is satisfied that no other member of Parliament commands the support of the majority of the members of Parliament, dissolve Parliament accordingly”.

Also, Article 54 of the constitution says, “If a vacancy occurs in the office of President or if the President is unable to discharge the functions of his office on account of his absence, illness or any other cause, the Speaker shall discharge those functions until a President is elected or until the President assumes the functions of his office, as the case may be”.

Importantly, it was indicated by the US deputy assistant secretary that failure to comply with the two options – but preferably the second – would be followed by a series of strong economic sanctions against Bangladeshi individuals, including influential businessmen and political leaders.

In the event of the ruling Awami League chosing to disregard the US ultimatum, as one source described the two options, the American authorities are said to have told their interlocutors in Dhaka that due processes of law would follow against a high value Bangladeshi individual residing in that country.

Speaking to Northeast News, one of Bangladesh’s foremost constitutional experts, Shahdeen Malik, said that in the event of a situation, political or otherwise, the prime minister will have to advise the president to dissolve parliament till the time fresh elections are held. The president, in turn, will ask the cabinet to continue. And, in the event the president is indisposed, for whatever reasons, the speaker will fulfill his duties and responsibilities.

Agreeing that there are lots of faults with the 15th amendment to the constitution, Malik said that it will be politically suicidal for her if she gives in to demands to quit.

Malik concluded that Sheikh Hasina will defy such moves and that he apprehends the regime will turn repressive.

 

Saturday 14 October 2023

Condemnation of Israeli deadline for Gaza evacuation

The United Nations has branded the Israeli evacuation order for more than one million Gaza residents to head to the southern Gaza Strip as horrendous and says the small enclave was rapidly becoming a hellhole.

The UN Palestinian refugee agency has hit out at Israel's order, saying, "This will only lead to unprecedented levels of misery and further push people in Gaza into abyss," General Philippe Lazzarini, its commissioner, said. 

"The scale and speed of the unfolding humanitarian crisis is bone-chilling. Gaza is fast becoming a hellhole and is on the brink of collapse.

"There is no exception, all parties must uphold the laws of war; humanitarian assistance must be provided at all times to civilians," Lazzarini remarked.

The UN says it is not possible for everyone in north Gaza to leave. 

The Israeli occupation had ordered 1.1 million Palestinians in Gaza to flee from their homes in the north and move south. The question is where to? There is no safe place in Gaza. 

This is the most densely populated place on the Earth - more than 2.2 million people live in a strip of land that's 40 kilometers long. 

Gaza City in the north is a major urban city. It can't be emptied out. 

Palestinians can't leave the Gaza Strip because the Israeli occupation regime controls almost all its exit points and they are trapped inside. It's been that way for 17 years. 

In a statement, the United Nations aid chief Martin Griffiths has said that "Gaza was under intense bombardment" and "roads and homes have been reduced to rubble."

"Forcing scared and traumatized civilians, including women and children, to move from one densely populated area to another, without even a pause in the fighting and without humanitarian support, is dangerous and outrageous," he added. 

Egypt controls the southern Rafah border crossing and it is also closed. Egypt has rejected calls from the Israeli army for Gaza's northern residents to flee south.

Its foreign ministry has called the measure a grave violation of international humanitarian law, exposing more than one million people to danger.

Earlier this week, Egyptian authorities rejected an Israeli recommendation that Palestinians fleeing its air strikes should cross the southern border into Egypt.

Despite authorities in Gaza warning of an Israeli plot to occupy the northern part of the territory and called on residents to stay steadfast, those who have traveled south have been killed by Israeli airstrikes anyway.

Reflecting the cruelty of the regime, it gave a hospital in Gaza "just two hours to evacuate" on Friday, a humanitarian organization said. 

MSF International said Al Awda Hospital has been told to evacuate staff and patients by the country. 

"Our staff is still treating patients," it said in a statement posted on social media.

"We unequivocally condemn this action, the continued indiscriminate bloodshed and attacks on health care in Gaza. 

"We are trying to protect our staff and patients." 

There is only one major highway bridge over a small river that Israel is ordering more than one million people to cross, which in reality is practically impossible to do.

The Norwegian Refugee Council, which works in occupied Palestine, has described Israel’s demand that 1.2 million people in Gaza leave their homes as a war crime.

Jan Egeland, the secretary general of the Norwegian Refugee Council, has released the following statement:
“The Israeli military demand that 1.2 million civilians in northern Gaza relocate to its south within 24 hours, absent of any guarantees of safety or return, would amount to the war crime of forcible transfer. It must be reversed.

“The collective punishment of countless civilians, among them children, women, and the elderly ... is illegal under international law.

“My colleagues inside Gaza confirm that there are countless people in the northern parts who have no means to safely relocate under the constant barrage of fire.

“The loss of civilian lives caused by deliberate or indiscriminate use of force is a war crime for which the perpetrators will have to answer. We fear that Israel may claim that Palestinians who could not flee northern Gaza can be erroneously held as directly participating in hostilities, and targeted.

“The United States, the UK, the European Union, and other Western and Arab Nations who have influence over the Israeli political and military leadership must demand that the illegal and impossible order to relocate is immediately rescinded.”

Oxfam International has made similar accusations against the regime.

"The world can see that this evacuation order is both utterly inhumane and impossible; the Israeli government must rescind it immediately. We implore the international community to use its utmost influence to intervene - there are hospitals full of patients, women, children and elderly people who cannot move. Even for those who could move, there is no food, no water and little shelter. This must be stopped," the charity group said.

TURKEY

Turkey has branded Israel's merciless 24-hour deadline a grave mistake.

The Turkish foreign ministry has said it is completely unacceptable for Israel to order people in the north of Gaza to move south within 24 hours.

The warning, issued by Israel as it prepares for a ground offensive, was inhumane and violated international law, Turkey's foreign ministry said.

"Forcing the 2.5 million people of Gaza - who have been subjected to indiscriminate bombing for days and who have been deprived of electricity, water and food - to migrate in an extremely limited area is a clear violation of international law and has no place in humanity," it said.

"We expect Israel to immediately reverse this grave mistake and urgently halt its merciless... acts against civilians in Gaza."

Airstrikes have been carried out all over Gaza. From refugee camps in the north like Jabalyia to central Deir al Baha and south to Rafah, no part of Gaza has been spared from Israeli attack. 

The regime has not provided any detail about how hundreds of thousands of traumatized Palestinians, the sick, the elderly and children are meant to travel, what road to take or where to go. 

Gazans are stressed, sleep-deprived and exhausted. Many will be hungry and weak from the last eight days of a relentless bombing campaign.

Roads are bombed, whole neighborhoods wiped out, there's a constant threat of air attack. 

Warning people in some areas of the tiny besieged enclave to get out ahead of an imminent ground invasion is a common Israeli military practice in its recurrent wars on Gaza.

Sometimes the Israeli military drops leaflets in neighborhoods ahead of a bombardment - as they did on Friday. They are also known to call the owner of a house to get out before they bomb it.

None of these measures have been undertaken under the current cycle of Israeli bombardment, which has been unprecedented. 

With no way to get out and nowhere to go, Israeli demands to empty north Gaza is aimed at terrifying the Palestinians.  

Authorities in Gaza have said the Israeli demands are a propaganda campaign and have called on Gaza's residents to stay put.

They say Israel wants to ethnically cleanse the Gaza Strip like its ethnic cleansing in 1948. This time, authorities warn, invaders also intend to eventually replace the emptied land with Israeli settlements. 

Amid the international outcry, the US, Israel’s staunchest ally, has been under heavy pressure to react.

The White House has been forced to issue a response to the Israeli demands. 

This is a tall order, White House national security spokesman John Kirby says.

"That is a lot of people to move in a very short period of time," he said in an interview on MSNBC. 

Kirby tried to somehow justify Israeli war crime by saying "we understand what they're trying to do and why they're trying to do this - to try to isolate the civilian population from Hamas, which is their real target." 

Critics argue the real Israeli target is the entire population of Gaza which the regime wants to cleanse ethnically. 

RUSSIA

Putin says civilian losses from an Israeli ground operation would be unacceptable

Speaking during a visit to Bishkek, the capital of Kyrgyzstan, Putin said, "Israel is replying on a large scale and also with quite cruel methods."

"In my view it is unacceptable," Putin said. “More than 2 million people live there ... all of them have to suffer, including women and children. Of course, it’s hard for anyone to agree with this.”

Russian president has called on the Israeli regime not to go ahead with a ground operation in Gaza. 

Putin said such an operation would result in an "absolutely unacceptable" level of civilian casualties.  

The Russian president added that there had been unacceptable calls in the US for a blockade of Gaza on a par with the siege of Leningrad by Nazi Germany in the Second World War.

CHINA

Earlier on Friday, the regime's foreign ministry expressed deep disappointment with China’s lack of condemnation of Hamas’s attack on Israel.

China has historically supported the Palestinian cause, but in recent months Israeli Prime Minister Benjamin Netanyahu has pushed for closer ties with Beijing. 

Since the latest conflict broke out, China has called for a two-state solution but has resisted Western calls for Beijing to condemn Hamas.

Tuesday 10 October 2023

Israel-Hamas war tests Beijing’s aspirations

The war erupting between the Palestinian group Hamas and Israel poses a complex test for China's aspirations to become a key diplomatic player in the Middle East as Beijing was looking to broker new peace talks.

Earlier this year, China had pledged to help facilitate negotiations between Israel and the Palestinians. Chinese state media trumpeted the possibility of a settlement based on a three-part proposal by Chinese President Xi Jinping. But the outbreak of severe violence may have shattered those hopes for the foreseeable future, while creating new challenges for China.

"This is like a tightrope walk that they have to perform," said Moritz Rudolf, a China scholar and fellow at Yale Law School's Paul Tsai China Center. "They have an economic interest in the stability of the region and they also have increased their political role."

After Hamas launched a deadly surprise attack on Saturday - firing thousands of rockets, sending fighters into Israeli communities and taking hostages back to Gaza - countries in Asia and around the world quickly condemned the killing of civilians. The death toll in Israel has surpassed 900, while nearly 700 have been killed on the Palestinian side amid a wave of retaliatory airstrikes on Gaza, according to local officials.

Unlike the United States, India, Japan and others, which have come out forcefully in support of Israel, the Chinese government has maintained a neutral position.

Beijing's official response to the Hamas attack on Saturday called for an immediate cease-fire and repeated its support for a two-state solution with an independent State of Palestine as a way out of the conflict. It did not condemn Hamas.

On Sunday, China's permanent representative to the United Nations, Zhan Jun, said China was worried about escalation.

"What's important is to prevent further escalation of the situation and casualties of civilians," Zhang told reporters before an emergency closed-door security meeting. "We condemn all attacks against civilians," he stressed.

President Xi has yet to make any public statement.

Historically, China has had close diplomatic ties with Palestinian leaders. The president of the Palestinian Authority, Mahmoud Abbas, this year made his fifth official visit to China in his nearly two decades in office. But in recent years, China has also deepened relations with Israel, investing in infrastructure and the country's vibrant technology sector.

Beijing's muted initial reaction to the violence did not go unnoticed.

On Sunday, Yuval Waks, a senior official at the Israeli Embassy in Beijing, said his country expected a stronger response from the world's second-largest economy.

"When people are being murdered, slaughtered in the streets, this is not the time to call for a two-state solution," Waks told reporters. "We believe that China as a superpower in this world ... should have taken a stronger stand."

But Beijing appears more comfortable playing a mediator role. In March, China brokered discussions between bitter rivals Saudi Arabia and Iran, enabling a diplomatic rapprochement. Analysts saw this as a challenge to US influence in the region.

In June, China outlined its vision for brokering peace between Israel and the Palestinians. But in doing so, it stuck its neck into a delicate situation that has vexed the US and other powers for decades.

Even though Israel and the Palestinians signed the Oslo Accords in September 1993, agreeing on a road map to peace, unsuccessful negotiations for a two-state solution have perpetuated tensions and violence. Talks have stalled since 2014, and the prospect of a deal appears to have become even more remote under Israeli Prime Minister Benjamin Netanyahu's right-wing coalition government and Hamas' sudden offensive.

Some observers argue that Beijing's silence on Hamas casts doubt on its ability to realize its ambitions in the region.

"China is still not willing to call Hamas out directly, and instead has tried to refer to them as combatants using language as ambiguous as possible, because it doesn't want to be seen as betraying its developing world friends - especially when that friend is engaged in hostilities against a leading US ally, namely Israel," said Wen-Ti Sung, a political scientist focusing on China at Australian National University.

Indeed, the conflict could further complicate China's already tense relations with Washington.

Xi on Monday met with US Senate leader Chuck Schumer, who was visiting with a bipartisan congressional delegation. Schumer expressed disappointment with China's lack of sympathy for Israel. "I urge you and the Chinese people to stand with the Israeli people and condemn the cowardly and vicious attacks," Schumer said to Xi.

After Schumer's visit, China's foreign ministry stressed that it condemns all violence and attacks on civilians and that the most urgent task now is to reach a ceasefire and restore peace. The US senator, writing on Xi, claimed credit: "I pointedly asked that they strengthen their statement. They did."

The same day, however, the Chinese state mouthpiece Global Times published an article criticizing American support for Israel, arguing it will only fan the conflict. "Israel already outweighs Palestine in terms of military might; if the US wants peace, it should take actions to calm down the situation, instead of giving one-sided support to Israel," Tian Wenlin, a research fellow at the China Institutes of Contemporary International Relations, was quoted as saying.

The story suggested that the pressure from Schumer is part of a US attempt to morally abduct China.

For now, Yale's Rudolf said that China will likely take a more risk-averse approach that advocates for humanity and civilians, without positioning itself on either side.

"The key thing is for China, they don't want to get sucked into this conflict," he said. "At some point, when great powers are to meet and to talk about this situation, China just wants to have a seat at the table, and the difference now is that they're taking it more seriously."

Courtesy: Nikki Asia

 

Friday 6 October 2023

Ten dumbest things propagandists want people to believe

There is no denying to the fact that we live under an empire that’s held together by lies. Here are the top ten dumbest things the US-led propagandists want to believe.

1. The US war machine has been surrounding its top two rivals China and Russia with war machinery as an act of defense, rather than an extremely provocative act of aggression.

2. The war in Ukraine simultaneously was completely unprovoked, and just coincidentally happens to massively advance US strategic interests and therefore should be funded as much as possible.

3. Although all the other wars were based on lies and resulted in disaster, but that couldn’t possibly be the case for this current war.

4. The foreign policy of any country is determined by the elected government, even though the foreign policy remains the same regardless of who is in office.

5. It is only by pure coincidence that any country’s population remains in a perpetual 50–50 deadlock which prevents anyone’s votes from changing the status quo, and the status quo just happens to be perpetually frozen along lines that hugely advantage the rich and powerful.

6. The only reason anyone could possibly be critical of the most dangerous impulses of the world’s most powerful and destructive government is if they are a secret agent working for the enemies of that government.

7. The western empires that spent the last two decades murdering Muslims in the Middle East suddenly care very deeply about the Muslims in China.

8. Putin invaded Ukraine solely because he is evil and hates freedom, and that the western empires are pouring weapons into Ukraine because they love Ukrainians and wants to protect their freedom and democracy.

9. The foreign propaganda and influence operations are significantly manipulating the way westerners think and vote, but the plutocrats who fully control all the most influential platforms in the western world are not.

10. Countries need to be worrying about tyrannical enemies in Beijing and Moscow, instead of tyrannical enemies a lot closer to home.

 

Monday 2 October 2023

UN Security Council condemns Israeli violations

At a UN Security Council session on the Israeli-Palestinian conflict, many representatives of the 15 member states criticized Israeli violations against Palestinians, with notably strong criticism from Russia and China. 

Kicking off the session, Tor Wennesland, the UN Special Coordinator for the Middle East Peace Process, spoke via a video conference and updated the meeting with his latest report for the period June 15 to September 19, 2023. 

The senior UN official reiterated to the Security Council the Secretary-General’s appeal for an end to the occupation and a resolution of the conflict as members echoed those calls and underlined a need to return to peace negotiations.

Wennesland pointed to the ongoing expansion of Israeli settlements, demolition of Palestinian homes, daily Israeli violence and continued inflammatory rhetoric by the Israeli cabinet.

He reported the latest settlement activity by Israel is advancing plans for 6,300 settler units in the occupied West Bank, and approximately 3,580 settler units in occupied eastern al-Quds (East Jerusalem), pointing to the Israeli administrative actions that likely expedited settlement expansion.  

Israeli authorities, citing a lack of Israeli-issued building permits, which are almost impossible for Palestinians to obtain, demolished, seized or forced people to demolish 238 structures, including 32 donor-funded ones, displacing 183 people, including 46 women and 91 children. 

Alarmingly, 59 schools, serving around 6,500 Palestinian students, are at risk of demolition to make way for Israeli settlers. 

“In a continuing trend, many Palestinians, including children, left from their communities citing violence by settlers and shrinking grazing land,” he also warned.

Wennesland noted that during this period, Israeli forces killed at least 68 Palestinians, including 18 children. 
Ten Israelis were also left dead by Palestinians in attacks and other incidents, the UN special coordinator added.  

Experts argue that Palestinians have a legitimate right enshrined under international law to wage retaliatory operations and resistance in the face of the brutal military occupation and ethnic cleansing campaign. 

Israeli forces’ 1,042 search-and-arrest operations in the West Bank have resulted in the arrest of 1,504 Palestinians, including 88 children, he added, highlighting that the regime currently holds 1,264 Palestinians in administrative detention - the highest number in over a decade. 

Wennesland also provided details on the urgent funding needs of the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) and the World Food Program (WFP).

In the ensuing discussion, council members stressed that the expanding Israeli settlements in the Occupied Palestinian Territory are a violation of international law and must cease.

Some representatives of states mostly allied to Israel also voiced concern about the ongoing violence and lack of any political progress, calling on all parties to exercise maximum restraint and take steps to de-escalate tensions.

Vasily Nebenzya of the Russian Federation recalled Israel's increasing steps to create irreversible facts on the ground and said that the ongoing explosive situation is a direct result of aggressive Israeli abuses in the occupied Palestinian territories. 

The current Permanent Representative of Russia to the UN warned against the legalization of settlement outposts and the violation of the status quo of the holy sites of occupied al-Quds (Jerusalem). 

Referring to Israel’s plan to increase the number of Israelis in the north of the occupied West Bank from 170,000 people to 1 million by 2050, with US$200 million allocated for that, Nebenzya said it goes against the relevant Security Council decisions and is contrary to international law.  
“The increase in violence against Palestinian minors and the demolition of educational institutions, including those built with donor funds, are of particular concern,” Nebenzia said, adding that the United States continues to promote Arab-Israeli normalization, circumventing the logic of the Arab Peace Initiative.  

“Russia is committed to the creation of a Palestinian State within the 1967 borders with occupied al-Quds (East Jerusalem) as its capital,” he stated.

Several diplomats proposed ways to enhance efforts in resolving the conflict, with China’s envoy in particular calling for higher priority to be given to an international peace conference. 
Beijing has been leading the calls for an international peace conference to end the suffering of Palestinians. 

China has been much more diplomatically involved in Palestinian affairs since Chinese President Xi Jinping hosted his Palestinian counterpart Mahmoud Abbas for a four-day state visit to Beijing in June. 

China's UN representative, Geng Shuang, also voiced support for President Abbas’ call for the Security Council to dispatch a mission to Palestine in due course. 

He urged the cessation of all settlement activities, unilateral actions to change the status quo in the Occupied Palestinian Territory, and escalation of settler violence. 

Geng also called on the "occupying power" to remove unreasonable restrictions on the movement of persons, goods and land use, and to lift the blockade on the Gaza Strip as soon as possible.

Brazil’s representative pointed out that the Security Council has become unresponsive to the Palestinians’ plight, stressing that the 15-member body must reflect on its role in paving the way for direct negotiations.  

“Sitting on our hands while the situation unravels is short-sighted and dangerous,” Sergio Franca Danese warned.

The Brazilian ambassador also recalled that his country’s president highlighted the overdue establishment of a Palestinian state as an example of longstanding unresolved disputes lingering on while new threats emerge.

Brazil recognized the State of Palestine in 2010. 

Pointing out that the Council has become unresponsive to the Palestinians’ plights, he stressed that "this must change".

The Brazilian diplomat called on Israel to curb settler violence and condemned any action aimed at altering the status quo of the holy sites. 
Furthermore, Danese highlighted the importance of fostering the Palestinian economy, addressing governance challenges and respecting human rights, announcing that Brazil will enhance its contributions to projects in those areas.

Gabon’s representative also called for the lifting of the Gaza blockade in line with Security Council resolution 1860 (2009), noting that Palestinian territories face budgetary constraints because of restrictions on freedom of movement and trade.

Vanessa Frazier of Malta condemned “episodes of settler violence which have terrorized Palestinian communities”. 

Japan’s representative was among the speakers who voiced support for UNRWA, underlining Tokyo's contribution of over US$40 million to the program. He urged Member States to make sure that UNRWA maintains its core services for Palestinian refugees.

Ambassador Ishikane Kimishiro also noted that lack of political progress is jeopardizing peace and security in the region. He also echoed other members' demands for Israel to immediately cease settlement activities. 

Ghana's Felix Akom Nyarku, referring to the increasing acts of settler violence, stressed that the destruction of infrastructure and properties in both the occupied Palestinian territories and in occupied al-Quds dangerously imperils the viability of peace.

He called on the international community to provide short-term investments to help the Palestinian Authority improve people’s access to education, health care, and employment as well as repair basic infrastructure and strengthen fiscal stability.
Andres Efren Montalvo Sosa of Ecuador highlighted that 2023 marks the most violent year in the region since 2005 (for Palestinians) and voiced concern about the increasing number of victims, expanding settlements, and daily violence.  

Western states, including the United States, the United Kingdom and France also made similar calls on Israel to cease its settlement activity, but critics say these statements cannot be taken at face value.

Much of the machinery, including bulldozers, with which the settlements are expanded on Palestinian land, are bought from the West, in a similar manner to how annual US military aid to Israel contributes to the killing of Palestinian women and children.

This comes as the Detainees and Ex-Detainees Affairs Commission released new data on Thursday showing that Israel has arrested more than 135,000 Palestinians since the outbreak of the al-Aqsa Intifada (Second Intifada) in 2000.

The commission said that these arrests affected all classes of Palestinian society, including children, women, and the elderly.
Nearly 21,000 Palestinian children have been arrested since 2000. 
In addition, half of the Legislative Council members, a number of ministers, hundreds of academics, journalists, and workers in civil society organizations and international institutions have been detained. 
Nobody has been spared by the regime.
The report also highlighted that more than 2,600 Palestinian girls and women were arrested by the regime's forces, including four women who gave birth in prison under harsh and difficult conditions.
 

 

Saturday 23 September 2023

Tattered Western Order

The great power competition between the United States and China is in full swing. Both the countries are embroiled in major issues of international affairs, and none of the international issues remains immune to their influence. 

Trade war, ideational war, and forging alliances are new forms of strategies crafted by Washington and Beijing. Arguably, the world no longer solely is dominated by the West materially and ideationally. The material and ideational decline by and large is contributing to enfeebling the Western hegemony.

The democratic crises in the West and the rise of China in terms of economy, becoming the world’s largest export market, and rapid rise in technology caused a great deal of consternation for the West. The deeply embedded crisis in the Western-led liberal order, ostensibly, leaves a vacuum for China.

The old Western-led liberal order looks more troubled today than at any time since the 1930s. 

Over a decade, Western free societies endured polarization, corruption, populism, inequality, and illiberal threats to the rule of law. The former US president Donald Trump's rhetoric of “America First” was not only symptomatic of attacks on liberal internationalism but also challenged US exceptionalism.

An exclusionary approach of Trump created a deep rift in international politics. The US exit from the Trans-Pacific Partnership Agreement (TPP), withdrawal from the Paris Climate Agreement and threat of the World Health Organization (WHO) astonished many experts. 

Joseph Nye accurately assessed Trump’s self-destructive approach and argues “I am not worried by the rise of China I am more worried by the rise of Trump” His populism, reactionary nationalism, an assault on the rule of law and openness of US society badly tarnished the American image.

Anne-Marie Slaughter states “Four years of erratic, personality-driven leadership in the United States under President Donald Trump have left the liberal order in tatters”. 

To improve the tarnished image of the US, the incumbent president Joe Biden promised to “rebuild the nation, revitalizing our democracy, and winning the future for America”.

In competition with China, the US must rebuild the social purpose of liberal democracy at home and improve the damaged image of liberal democracy abroad. The work appears to be a daunting task for the Biden administration to improve its triple crises, crisis of democracy, crisis of leadership, and crisis of multilateralism. 

The US is extremely likely to weaponize ideology in its strategic rivalry vis-à-vis China. The battle of democracy vs. autocracy will gain further momentum. Biden advises his countrymen “I predict to you your children or grandchildren are going to be doing their doctoral thesis on the issue of who succeeded, autocracy or democracy, because that is what is at stake”.

The relative rise of China in terms of economy and changing distribution of global wealth in parity between the West and East would go in favour of the East in the coming decades. The diffusion of power and transfer of global wealth will make the hegemonic decline of the West irreversible. 

The Chinese vision, a community of shared future for mankind first emerged in 2011 as a rhetorical slogan in Chinese diplomacy gained content and substance. The phrase in October 2017 after the 19th National Congress was incorporated into the Constitution of the Chinese Communist Party (CCP) and subsequently into the Chinese Constitution in March 2018.  

A community of shared future for mankind is aimed at building an inclusive, open, clean and beautiful world contributing to lasting peace, common prosperity and universal security, providing instructive answers to addressing the fragmentation and turbulence in international politics. China has actively advocated the phrase in public diplomacy. The Chinese vision was accepted in different UN resolutions as far as the peace and security of the world are concerned.

To be fair, the Chinese vision would confront innumerable challenges in a politically divided world community. Nadège Rolland terms the Chinese vision “looks more like a list of what Beijing advocates for its own needs, security, and position than an innovative contribution for the future of the world”.

Meanwhile, China initiated the Global Civilizational Initiative GCI. The initiative is believed to have been promoting diversity, plurality and dignity among nations challenging the idea's imposition and discouraging the exploitation of communities and resources that will prove instrumental for diversity, mutual understanding, and the world's economic growth.

China under GCI is trying to undermine Western democracy which is coupled with populism, polarization, racism and xenophobia. The contemporary world is going through tremendous changes, power is shifting from the West to the East. 

The Western dominance in terms of material and ideational seems to be declining. The Saudi-Iran détente brokered by China was a momentous occasion in Middle Eastern politics that caused a huge setback to the US interest. The inclusion of Saudi Arabia, UAE, Iran Egypt, Ethiopia and Argentina in BRICS would cement China’s ideational, and material strength vis-à-vis the US. 

The prevailing battle of democracy vs. autocracy will further accelerate. The United States promotes Quadrilateral Security Dialogue Quad comprised the democratic countries like the US, India, Japan and Australia in a bid to contain China.

The Ukraine crisis has brought China and Russia closer together. The US domestically and internationally faces dual challenges in the projection of democracy. Domestic crises such as populism, racism, and xenophobia pose severe threats to democracy. In the international arena, China and Russia are causing significant obstacles in the advancement of US democracy.     

 

Friday 22 September 2023

Fallout from Canada-India clash

Canada-India relations are reeling from the announcement that Canadian security agencies had uncovered evidence linking the Indian government to the assassination of an Indian-born Canadian citizen in British Columbia earlier this year. Canada Institute Associate Xavier Delgado outlines what's at stake for both countries and their allies in the Indo-Pacific.

Prime Minister Justin Trudeau announced that Canadian security agencies have obtained credible evidence linking the Indian government to the unsolved murder of Hardeep Singh Nijjar, a Canadian citizen and notable advocate for Sikh separatism. 

Nijjar was shot by two masked assailants outside a Sikh temple in British Columbia earlier this year in an attack that Canada alleges has since been connected to agents of India.

The Indian foreign ministry decried the allegations as absurd and, in the aftermath of the announcement, exchanged tit-for-tat expulsions of senior diplomats from Ottawa and New Delhi.

The dispute has shined a sudden spotlight on the Canada-India relationship, which, prior to the Nijjar incident, had been trending in a positive direction. Geopolitical developments, economic ties, and demographic trends over the past ten years had set the stage for closer cooperation between the two former British colonies. India’s prominence in Canada’s 2022 Indo-Pacific Strategy and high-level negotiations between the two states for an early progress trade agreement (EPTA) gave supporters of the relationship plenty of reasons to be optimistic.

Now, the allegations that the Indian government orchestrated the assassination of a Canadian citizen on Canadian soil have cast a cloud of doubt over the path ahead for the bilateral relationship.

Trade will likely be the first major casualty of the fallout, with negotiations for the EPTA being put on hold. Both countries declared that they would pause trade talks with each other earlier this month and Canadian Trade Minister Mary Ng has indefinitely postponed a trade mission to New Delhi that had been planned for October. The negotiations were a notable part of Canada’s Indo-Pacific Strategy, which listed the EPTA as a critical step towards a larger comprehensive economic partnership agreement (CEPA) that would bolster trade ties between the two countries.

The stalled trade talks have put a US$17 billion bilateral trade relationship under strain. Canadian merchandise trade with India grew from approximately US$3.87 billion in 2012 to US$10.18 billion in 2022, with major increases in the export of Canadian energy products and import of Indian consumer goods. In that same year, services trade between the two countries measured US$6.96 billion. 

A reduction in the flow of Indian immigrants, which constitute almost one in five of all recent immigrants to Canada, could be even more devastating than a deterioration of trade relations.

Canada recently reached the 40-million-population milestone off an influx in inbound migration following the COVID-19 pandemic. In fact, Canada’s population growth, which is the fastest in the G7, is mainly driven by migration ‑ four in five new Canadians from 2016 to 2021 were immigrants. 

Indian immigration to Canada has tripled since 2013, overtaking and pulling away from the Philippines and China as the top source country for new Canadians in the 2021 census.

That census also counted 1.3 million ethnic Indians living in Canada, over 1 million of whom resided in British Columbia or Ontario. 77% of that group – 771,790 people – follow Sikhism, making Canada’s Sikh population the largest in the world outside of India. 

India also tops a notable subcategory of immigration ‑ international students, 34% of international students in Canada from 2015 to 2019 came from India, providing a critical source of revenue for Canadian academic institutions; by 2022, that share had grown to 40%. These numbers directly translate to the labor force, with Indian graduates from Canadian programs accounting for the largest share of post-graduate work permit holders in 2018 over China (20%) and the United States (1%).

Beyond the bounds of Canada-India relations, the dispute between the two countries may throw a wrench in the emerging Indo-Pacific framework of institutions and alliances.

India, with its economic might and security capabilities, has been hailed by the United States and democratic allies as a regional counterweight to China. Washington included India as a founding member of the Indo-Pacific Economic Framework (IPEF) and the freshly-anointed I2U2 bloc with Israel and the United Arab Emirates.

Both countries are also founding members of the Quadrilateral Security Dialogue (QSD or Quad), a strategic security dialogue that includes Japan and Australia.

Canada, for its part, was not invited to join the Quad or IPEF at the conception of either group, nor was it included alongside Five Eyes allies Australia and the United Kingdom in the AUKUS security pact. After inviting Canada to join the Trans-Pacific Partnership during the Obama administration, the United States opted to not join the agreement, leaving both countries without a shared major economic or security institution in the Indo-Pacific. 

A chilling of relations with India could hinder Canada’s ability to join the network of Indo-Pacific institutions, both because regional allies will be wary of angering the Modi government and because India itself could block Canadian membership in certain groups.

Ottawa is clearly aware of India’s influence and power in the region. The Canadian Indo-Pacific strategy, published in late 2022, has an entire section dedicated to India that reads, “India’s strategic importance and leadership – both across the region and globally – will only increase as India – the world’s biggest democracy – becomes the most populous country in the world and continues to grow its economy.”

Canada is not the only party that stands to lose from this dispute. The allegations can damage India’s public image as a democratic nation committed to a rules-based order or, more critically, its perception as a trustworthy ally in the competition against China. Canada’s Five Eyes partners could reevaluate intelligence sharing and law enforcement cooperation with India if Canadian officials uncover definitive proof of India’s involvement in Nijjar’s murder. 

Disputes between allies are common and, in the diverse roster of countries that constitute the emerging Indo-Pacific architecture, should be expected. Governments disagree frequently over trade policies, environmental practices, and other issues that don’t pose a threat to their diplomatic relationships.

The Canada-India dispute is unique in that the severity of the allegations, the economic and demographic ties between the two countries, and the geopolitical context in which the situation unfolded have raised the stakes for all parties, including the United States.

To prevent spillover damage to the nascent Indo-Pacific alliances, Washington will need to approach the situation carefully. Beijing benefits the most from in-fighting between major US allies, but regardless of how the coming weeks play out, both Canada and India will still have poor relations with China and good relations with the United States. One reason for this is the values that all three countries nominally share. US leaders should remember this and remind Ottawa and New Delhi that the path forward must be paved by justice and a commitment to due process to deviate from those values would be to bring relations between all three countries into uncharted and volatile territory.

 

Saturday 16 September 2023

Iran becomes 3rd top oil producer among OPEC members

Iran continued to increase its oil production in August to reach three million barrels per day (bpd) and stand at the third place among OPEC top producers, according to figures released in the organization’s latest monthly report.

OPEC data shows that Iran’s oil output increased by 143,000 bpd or 5% in August as compared to production figures reported in July, Shana reported.

The figures showed that Iran had regained its position as the third largest oil producer in OPEC in August after Saudi Arabia and Iraq.

Iran posted the largest increase in oil production in OPEC last month, as the country is exempt from output cuts introduced by the alliance to help boost international oil prices.

Iranian heavy oil prices rose to US$87.58 per barrel in August from US$81.48 reported in July, OPEC data showed.

The figures prove earlier reports suggesting Iranian oil production and exports had reached multi-year record levels in August despite US sanctions that restrict the country’s ability to engage in normal trade of oil products.

Estimates by international energy firms published earlier this month had suggested that Iran’s oil exports were nearly 3.15 million bpd in August as oil exports from the country reached over 2 million bpd.

Private refiners in China accounted for a bulk of oil purchases from Iran last month as shipments rose to an all-time record of 1.5 million bpd.

Iran’s Oil Minister Javad Oji said earlier that Iran’s oil production will reach 3.4 million bpd by late September.

 

Friday 15 September 2023

China blacklists US defence companies

Beijing has announced sanctions on two US companies over arms sales to Taiwan, warning of forceful retaliation against any further US military deals with the island.

Without saying what action Beijing would take, the Chinese foreign ministry said on Friday that the sanctions applied to Northrop Grumman and a unit of Lockheed Martin.

Ministry spokeswoman Mao Ning said the St Louis, Missouri, branch of Lockheed Martin was the main contractor in a US arms sale to Taipei on August 24 while Northrop Grumman, based in Falls Church, Virginia, had been involved in supplying weapons to Taiwan multiple times.

Mao said Washington was going further down the wrong and dangerous path of arming Taiwan despite Beijing’s firm opposition.

“We urge the US side … to stop selling weapons to Taiwan, to stop the US-Taiwan military collusion and to stop arming Taiwan, otherwise it will be met with resolute and forceful countermeasures of China,” she said.

The State Department announced three weeks ago that the US had approved a half billion dollar sale of advanced sensor systems built by Lockheed Martin for F-16 fighter jets to Taipei.

Lockheed Martin – along with Raytheon Missiles and Defence – was already on a Chinese Commerce Ministry blacklist over Taiwan arms sales.

Beijing later said Chinese companies were banned from doing business with the US firms and senior executives of Lockheed or RMD were not allowed to travel to or work in China.

The self-governed island has become one of the greatest sources of tension between the two powers in recent years.

Beijing regards Taiwan as a breakaway province to be brought under mainland control by force if necessary and opposes any official interactions between countries it has established diplomatic relations with and the island.

Most countries, including the US, do not recognize the island as an independent state, although Washington is opposed to any attempt to take it forcibly.

In addition to the arms sale, the Biden administration notified the US Congress last month that it had approved the first-ever US military aid – amounting to US$80 million – to Taiwan under a program generally reserved for assistance to sovereign, independent states.

The US government is also reportedly planning to redirect millions of dollars of military financing for Egypt to Taiwan.

On Friday, Mao said US arms sales to Taiwan seriously violate the one-China principle and severely harm China’s sovereignty and security interests”.

“The Chinese government’s determination to defend its national sovereignty and territorial integrity is unwavering,” she said.

Last weekend US President Joe Biden said the economic slowdown in mainland China could make it less likely to consider an invasion of Taiwan.

“I don’t think it’s going to cause China to invade Taiwan. And matter of fact, the opposite – it probably doesn’t have the – the same capacity that it had before,” he said on Sunday during a visit to Vietnam.

Beijing responded saying that resolving the Taiwan question is a matter for the Chinese ourselves.