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  • Analysis: China’s intensifying nuclear-armed submarine patrols add complexity for U.S., allies

    Analysis: China’s intensifying nuclear-armed submarine patrols add complexity for U.S., allies

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    HONG KONG, April 4 (Reuters) – China is for the first time keeping at least one nuclear-armed ballistic missile submarine constantly at sea, according to a Pentagon report – adding pressure on the United States and its allies as they try to counter Beijing’s growing military.

    The assessment of China’s military said China’s fleet of six Jin-class ballistic missile submarines were operating “near-continuous” patrols from Hainan Island into the South China Sea. Equipped with a new, longer-range ballistic missile, they can hit the continental United States, analysts say.

    The note in the 174-page report drew little attention when it was released in late November, but shows crucial improvements in Chinese capabilities, according to four regional military attaches familiar with naval operations and five other security analysts.

    Even as the AUKUS deal will see Australia field its first nuclear-powered submarines over the next two decades, the constant Chinese ballistic missile patrols at sea pile strain on the resources of the United States and its allies as they intensify Cold War-style deployments.

    “We’re going to want to have our SSNs trying to tail them… so the extra demands on our assets are clear,” said Christopher Twomey, a security scholar at the U.S. Naval Postgraduate School in California, speaking in a private capacity. SSN is a U.S. designation for a nuclear-powered attack sub. “But the point here is that the information – the near continuous patrols – has changed so rapidly that we don’t know what else has changed.”

    The new patrols imply improvements in many areas, including logistics, command and control, and weapons. They also show how China starting to operate its ballistic missile submarines in much the same way the United States, Russia, Britain and France have for decades, military attaches, former submariners and security analysts say.

    Their “deterrence patrols” allow them to threaten a nuclear counterattack even if land-based missiles and systems are destroyed. Under classic nuclear doctrine, that deters an adversary from launching an initial strike.

    The Chinese subs are now being equipped with a third-generation missile, the JL-3, General Anthony Cotton, the commander of the U.S. Strategic Command, told a congressional hearing in March.

    With an estimated range of more than 10,000 kilometres (6,214 miles) and carrying multiple warheads, the JL-3 allows China to reach the continental United States from Chinese coastal waters for the first time, the Pentagon report notes.

    Previous reports had said the JL-3 was not expected to be deployed until China launched its next-generation Type-096 submarines in coming years.

    The Chinese defence ministry did not respond to a request for comment on the Pentagon report and its submarine deployments. The Pentagon did not comment on its earlier assessments or whether the Chinese deployments posed an operational challenge.

    The U.S. Navy keeps about two dozen nuclear-powered attack subs based across the Pacific, including in Guam and Hawaii, according to the Pacific Fleet. Under AUKUS, U.S. and British nuclear-powered subs will be deployed out of Western Australia from 2027.

    Such submarines are the core weapons for hunting ballistic missile subs, backed by surface ships and P-8 Poseidon surveillance aircraft. The U.S. also has seabed sensors in key sea lanes to help detect submarines.

    Timothy Wright, a defence analyst at London’s International Institute for Strategic Studies, said U.S. forces could probably cope with the situation now, but would have to commit more assets in the next 10 to 15 years once the stealthier Type-096 patrols begin.

    China’s rapid expansion of its nuclear forces mean U.S. strategists must contend with two “nuclear peer adversaries” for the first time, along with Russia, he added.

    “That will be of concern to the United States because it will stretch U.S. defences, hold more targets at risk, and they will need addressing with additional conventional and nuclear capabilities,” he said.

    COMMAND AUTHORITY

    China’s navy has for years been thought to have the capability for deterrence patrols, but issues with command, control and communications have slowed their deployment, the military attaches and analysts say. Communications are crucial and complex for ballistic missile subs, which must remain hidden as part of their mission.

    The Jin-class subs, expected to be replaced by the Type-096 over the next decade, are relatively noisy and easy to track, the military attaches said.

    “Something concerning command authority must have also changed, but we just don’t have very good opportunities to talk to the Chinese about this kind of stuff,” Twomey said.

    The Chinese military has emphasised that the Central Military Commission, headed by President Xi Jinping, is the only nuclear command authority.

    Hans Kristensen, director of the nuclear information project at the Federation of American Scientists, said he believed command and communications issues remained a “work in progress”.

    “While China probably has made progress on establishing secure and operationally meaningful command and control between the Central Military Commission and the SSBNs, it seems unlikely that the capability is complete or necessarily fully battle hardened,” he said, using the designation letters for a nuclear-powered ballistic missile submarine.

    Two researchers at a Chinese navy training institute in Nanjing warned in a 2019 underwater-warfare journal of poor command organisation and co-ordination among submarine forces. The paper also urged improvements in submarine-launched nuclear strike capability.

    The navy must “strengthen ballistic missile nuclear submarines on patrol at sea, so as to ensure that they have the means and capabilities to carry out secondary nuclear counterattack operations when necessary,” the researchers wrote.

    SOUTH CHINA SEA ‘BASTION’

    With the advent of the JL-3 missile, Kristensen and other analysts expect Chinese strategists to keep their ballistic missile subs in the deep waters of the South China Sea – which China has fortified with a string of bases – rather than risk patrols in the Western Pacific.

    Collin Koh, a security fellow at Singapore’s S. Rajaratnam School of International Studies, said China could keep its ballistic missile submarines in a “bastion” of protected waters near its shores.

    “If I was the planner, I would want to keep my strategic deterrence assets as close to me as possible, and the South China Sea is perfect for that,” Koh said.

    Russia is thought to keep most of its 11 ballistic missile submarines largely in bastions off its Arctic coasts, while U.S., French and British boats roam more widely, three analysts said.

    Kristensen said the more numerous Chinese submarine deployments have meant the PLA and U.S. militaries increasingly “rub up” against each other – increasing the odds of accidental conflict.

    “The Americans of course are trying to poke into that bastion and see what they can do, and what they need to do, so that is where the tension can build and incidents happen,” he said.

    Reporting By Greg Torode in Hong Kong and Eduardo Baptista in Beijing; Additional reporting by Idrees Ali in Washington; Editing by Gerry Doyle.

    Our Standards: The Thomson Reuters Trust Principles.

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  • Apple CEO praises China’s innovation, long history of cooperation on Beijing visit

    Apple CEO praises China’s innovation, long history of cooperation on Beijing visit

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    SHANGHAI, March 25 (Reuters) – Apple (AAPL.O) CEO Tim Cook on Saturday used his first public remarks on his visit to China to praise the country for its rapid innovation and its long ties with the U.S. iPhone maker, according to local media reports.

    Apple (AAPL.O) CEO Tim Cook on Saturday used his first public remarks in China in recent years to praise the country for its rapid innovation and its long ties with the U.S. iPhone maker, according to local media reports.

    Cook is in Beijing to attend the China Development Forum, a government-organised event being held again in full force after the country ended its COVID controls late last year.

    Besides Cook, the event is being attended by senior government officials as well as CEOs of firms such as Pfizer and BHP.

    “Innovation is developing rapidly in China and I believe it will further accelerate,” Cook was quoted by The Paper news outlet as saying.

    His visit comes at a time of rising tensions between Beijing and Washington and as Apple has been looking to reduce its supply chain reliance on China and moving production to new up and coming centres such as India.

    Last year, production at the world’s largest iPhone factory run by Apple supplier Foxconn was heavily disrupted after China’s zero-COVID policies fuelled worker unrest.

    Cook also visited an Apple Store in Beijing on Friday, pictures of which went viral on Chinese social media.

    During his speech, Cook also discussed education and the need for young people to learn programming critical thinking skills, announcing that Apple plans to increase spending on its rural education programme to 100 million yuan, the local media reports said.

    Reporting by Brenda Goh

    Our Standards: The Thomson Reuters Trust Principles.

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  • Russia’s war on Ukraine latest: Ukraine slams Putin’s nuclear weapons plan

    Russia’s war on Ukraine latest: Ukraine slams Putin’s nuclear weapons plan

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    March 26 (Reuters) – A top security adviser to Ukrainian President Volodymyr Zelenskiy said that Russian plans to station tactical nuclear weapons in Belarus would destabilise that country, which he said had been taken “hostage” by Moscow. Russian President Vladimir Putin announced the decision on Saturday, sending a warning to NATO over its military support for Ukraine and escalating a standoff with the West.

    DIPLOMACY AND SANCTIONS

    * Russia and China are not creating a military alliance and the cooperation between their armed forces is “transparent”, Putin said in comments broadcast on Sunday, days after hosting Chinese leader Xi Jinping in the Kremlin.

    * Spanish Prime Minister Pedro Sanchez said on Saturday he would push for fair peace in the war in Ukraine that included “territorial integrity”, when he visits China next week.

    * Putin held a phone call with his Turkish counterpart Tayyip Erdogan, the Kremlin said. Erdogan thanked Putin for his “positive attitude” in extending the Black Sea grain deal, the Kremlin said in a statement.

    BATTLEFIELD

    * Ukrainian forces have managed to blunt Russia’s offensive in and around the embattled eastern city of Bakhmut, where the situation is stabilising, commander in chief General Valery Zaluzhniy said on Saturday. Separately, Britain’s defence ministry said the months-long Russian assault on the city had stalled, mainly as a result of heavy troop losses.

    * The Ukraine General Staff said on Sunday Ukrainian forces had repelled 85 Russian attacks over the past 24 hours in several parts of the eastern front, including the Bakhmut area.

    * U.N. nuclear watchdog chief Rafael Grossi said on Saturday he will visit the Russian-held Zaporizhzhia nuclear power plant in Ukraine next week to assess the serious situation there.

    * More than 5,000 former criminals have been pardoned after finishing their contracts to fight in Russia’s Wagner mercenary group against Ukraine, the founder of Wagner, Yevgeny Prigozhin, said on Saturday.

    *Reuters could not independently verify battlefield reports.

    ECONOMY

    * Ukraine will no longer resort to “dangerous” monetary financing to fund the war against Russia, its central bank governor, Andriy Pyshnyi, told the Financial Times in an interview.

    RECENT IN-DEPTH STORIES

    * INSIGHT-Inside Ukraine’s scramble for “game-changer” drone fleet

    * Peace plans and pipelines: What came out of the Putin-Xi talks?

    * SPECIAL REPORT-Wagner’s convicts tell of horrors of Ukraine war and loyalty to their leader

    Compiled by Reuters editors

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  • Putin says Russia is fighting for its very existence

    Putin says Russia is fighting for its very existence

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    MOSCOW, March 14 (Reuters) – President Vladimir Putin said on Tuesday that what was at stake in Ukraine was Russia’s very existence as a state.

    Speaking at length to workers at an aviation factory in Buryatia, some 4,400 km (2,750 miles) east of Moscow, Putin expanded on his familiar argument that the West was bent on pulling Russia apart.

    “So for us this is not a geopolitical task, but a task of the survival of Russian statehood, creating conditions for the future development of the country and our children,” he said.

    Putin has accused the West of using Ukraine as an tool to wage war against Russia and inflict on it a “strategic defeat”. The United States and its allies say they are helping Ukraine to defend itself from an imperial-style invasion that has destroyed Ukrainian cities, killed thousands of civilians and forced millions to flee their homes.

    Putin said in a response to a question that he had been worried about the economy when the West imposed unprecedented waves of sanctions last year but it had proved stronger than expected.

    “We have increased our economic sovereignty many times over. After all, what did our enemy count on? That we would collapse in 2-3 weeks or in a month,” he said.

    He said the enemy had been expecting that factories would grind to a halt, the financial system would collapse, unemployment would rise, protesters would take to the streets, and Russia would “sway from within and collapse”.

    “This did not happen,” Putin said. “It turned out, for many of us, and even more so for Western countries, that the fundamental foundations of Russia’s stability are much stronger than anyone thought.”

    Reporting by Reuters; editing by Guy Faulconbridge

    Our Standards: The Thomson Reuters Trust Principles.

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  • China plans 7.2% defence spending rise this year, faster than GDP target

    China plans 7.2% defence spending rise this year, faster than GDP target

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    • China’s 2023 defence spending to rise 7.2%
    • Increase to outpace GDP growth target of around 5%
    • Premier Li says armed forces should boost combat preparedness
    • China investing in new hardware including aircraft carriers

    BEIJING, March 5 (Reuters) – China will boost defence spending by 7.2% this year, slightly outpacing last year’s increase and faster than the government’s modest economic growth forecast, as Premier Li Keqiang called for the armed forces to boost combat preparedness.

    The national budget released on Sunday showed 1.55 trillion yuan ($224 billion) allocated to military spending.

    The defence budget will be closely watched by China’s neighbours and the United States, who are concerned by Beijing’s strategic intentions and development of its military, especially as tensions have spiked in recent years over Taiwan.

    In his work report to the annual session of parliament, Li said military operations, capacity building and combat preparedness should be “well-coordinated in fulfilling major tasks”.

    “Our armed forces, with a focus on the goals for the centenary of the People’s Liberation Army in 2027, should work to carry out military operations, boost combat preparedness and enhance military capabilities,” he said in the state-of-the-nation address to the largely rubber-stamp legislature.

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    This year’s hike in defence spending marks the eighth consecutive single-digit increase. As in previous years, no breakdown of the spending was given, only the overall amount and the rate of increase.

    The spending increase outpaces targeted economic growth of around 5%, which is slightly below last year’s target as the world’s second-largest economy faces domestic headwinds.

    Beijing is nervous about challenges on fronts ranging from Chinese-claimed Taiwan to U.S. naval and air missions in the disputed South China Sea near Chinese-occupied islands.

    China staged war games near Taiwan last August to express anger at the visit to Taipei of then-U.S. House Speaker Nancy Pelosi.

    Li Mingjiang, associate professor at S. Rajaratnam School of International Studies in Singapore, said defence spending outpacing the economic growth forecast showed China anticipates facing greater pressures in its external security environment, especially from the United States and on the Taiwan issue.

    “Chinese leaders are clearly intensifying efforts to prepare the country militarily to meet all potential security challenges, including unexpected situations,” he said.

    China, with the world’s largest military in terms of personnel, is busy adding a slew of new hardware, including aircraft carriers and stealth fighters.

    ‘STRENGTHEN MILITARY WORK’

    Beijing says its military spending for defensive purposes is a comparatively low percentage of its GDP and that critics want to demonise it as a threat to world peace.

    “The armed forces should intensify military training and preparedness across the board, develop new military strategic guidance, devote greater energy to training under combat conditions and make well-coordinated efforts to strengthen military work in all directions and domains,” Premier Li said.

    Takashi Kawakami, a professor of Takushoku University in Tokyo, said China would probably give priority to its nuclear capability.

    “As China strengthens the new area of cognitive warfare over Taiwan, I think it will also use the budget to build up its cyber and space capabilities, as well as its submarine forces to target undersea cables,” he said.

    China’s reported defence budget in 2023 is around one quarter of proposed U.S. spending, though many diplomats and foreign experts believe Beijing under-reports the real number.

    The fiscal 2023 U.S. defence budget authorises $858 billion in military spending and includes funding for purchases of weapons, ships and aircraft, and support for Taiwan and for Ukraine as it fights an invasion by Russia.

    China has long argued that it needs to close the gap with the United States. China, for example, has three aircraft carriers, compared with 11 in active service for the United States.

    The Ukraine war has prompted some elements in China’s military-industrial complex to call for an increase in the defence budget.

    An article published last October in the official journal of the State Administration of Science, Technology and Industry for National Defence, a central government ministry responsible for wartime logistics, recommended an increase in the military budget given surges in defence spending from NATO member-states besides the United States.

    “This matter is not about participating in the international arms race, but defending our national security,” it said.

    ($1 = 6.9048 Chinese yuan renminbi)

    Reporting by Yew Lun Tian; Additional reporting by Eduardo Baptista, and Nobuhiro Kubo in Tokyo; Writing by Ben Blanchard; Editing by William Mallard & Simon Cameron-Moore

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  • China sets modest growth target of about 5% as parliament opens

    China sets modest growth target of about 5% as parliament opens

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    • GDP target around 5% at low end of expectations
    • Work report focuses on consumption, jobs
    • Defence spending to rise 7.2%, up from 7.1% rise
    • Budget deficit target at 3%, wider than previous 2.8%

    BEIJING, March 5 (Reuters) – China set a modest target for economic growth this year of around 5% on Sunday as it kicked-off the annual session of its National People’s Congress (NPC), which is poised to implement the biggest government shake-up in a decade.

    China’s gross domestic product (GDP) grew by just 3% last year, one of its worst showings in decades, squeezed by three years of COVID-19 restrictions, crisis in its vast property sector, a crackdown on private enterprise and weakening demand for Chinese exports.

    In his work report, outgoing Premier Li Keqiang stressed the need for economic stability and expanding consumption, setting a goal to create around 12 million urban jobs this year, up from last year’s target of at least 11 million, and warned that risks remain in the real estate sector.

    Li set a budget deficit target at 3.0% of GDP, widening from a goal of around 2.8% last year.

    “We should give priority to the recovery and expansion of consumption,” said Li, who spoke for just under an hour in a speech to open the parliament, which will run through March 13.

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    “The incomes of urban and rural residents should be boosted through multiple channels. We should stabilize spending on big-ticket items and promote recovery in consumption of consumer services,” he said.

    This year’s growth target of around 5% was at the low end of expectations, as policy sources had recently told Reuters a range as high as 6% could be set. It is also below last year’s target of around 5.5%.

    “While the official growth target has been lowered for the second consecutive year, which might be a disappointment to the market, we reckon investors (should) pay attention to the underlying growth momentum to gauge the recovery pace,” said Zhou Hao, economist at Guotai Junan International.

    Li and a slate of more reform-oriented economic policy officials are set to retire during the congress, making way for loyalists to President Xi Jinping, who further tightened his grip on power when he secured a precedent-breaking third leadership term at October’s Communist Party Congress.

    During the NPC, former Shanghai party chief Li Qiang, a longtime Xi ally, is expected to be confirmed as premier, tasked with reinvigorating the world’s second-largest economy.

    The rubber-stamp parliament will also discuss Xi’s plans for an “intensive” and “wide-ranging” reorganisation of state and Communist Party entities, state media reported on Tuesday, with analysts expecting a further deepening of Communist Party penetration of state bodies.

    MILITARY BUDGET RISE

    Li said China’s armed forces should devote greater energy to training under combat conditions and boost combat preparedness, and the budget included a 7.2% increase in defence spending this year, a slightly bigger increase than last year’s budgeted 7.1% rise and again exceeding expected GDP growth.

    On Taiwan, Li struck a moderate tone, saying China should promote the peaceful development of cross-Strait relations and advance the process of China’s “peaceful reunification”, but also take resolute steps to oppose Taiwan independence.

    Beijing faces a host of challenges including increasingly fraught relations with the United States and a worsening demographic outlook, with plunging birth rates and a population drop last year for the first time since the famine year of 1961.

    China plans to lower the costs of childbirth, childcare and education and will actively respond to an ageing population and a decrease in fertility, the nation’s state planner said in a work report released on Sunday.

    The NPC opened on a smoggy day amid tight security in the Chinese capital, with 2,948 delegates gathered in the cavernous Great Hall of the People on the west side of Tiananmen Square.

    During the session, China’s legislature will vote on a plan to reform institutions under the State Council, or cabinet, and decide on a new cabinet line-up for the next five years, according to a meeting agenda.

    It is the first NPC meeting since China abruptly dropped its zero-COVID policy in December, following rare nationwide protests. Excluding the pandemic-shortened meetings of the previous three years, this year’s session will be the shortest in at least 40 years, according to NPC Observer, a blog.

    Additional reporting by the Beijing newsrooom; Writing by Tony Munroe; Editing by Himani Sarkar, William Mallard and Simon Cameron-Moore

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  • Iran makes sweeping pledge of cooperation to IAEA before board meeting

    Iran makes sweeping pledge of cooperation to IAEA before board meeting

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    VIENNA, March 4 (Reuters) – Iran has given sweeping assurances to the U.N. nuclear watchdog that it will finally assist a long-stalled investigation into uranium particles found at undeclared sites and even re-install removed monitoring equipment, the watchdog said on Saturday.

    The International Atomic Energy Agency and Iran issued a joint statement on IAEA chief Rafael Grossi’s return from a trip to Tehran just two days before a quarterly meeting of the agency’s 35-nation Board of Governors.

    The statement went into little detail but the possibility of a marked improvement in relations between the two is likely to stave off a Western push for another resolution ordering Iran to cooperate, diplomats said. Iran has, however, made similar promises before that have yielded little or nothing.

    “Iran expressed its readiness to … provide further information and access to address the outstanding safeguards issues,” the joint statement said. A confidential IAEA report to member states seen by Reuters said Grossi “looks forward to … prompt and full implementation of the Joint Statement”.

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    Iran is supposed to provide access to information, locations and people, Grossi told a news conference at Vienna airport soon after landing, suggesting a vast improvement after years of Iranian stonewalling.

    Iran would also allow the re-installation of extra monitoring equipment that had been put in place under the 2015 nuclear deal, but then removed last year as the deal unravelled in the wake of the U.S. withdrawal from the deal in 2018 under then-President Donald Trump.

    Iran’s Atomic Energy Organization spokesperson Behrouz Kamalvandi, however, said Tehran had not agreed to give access to people.

    “During the two days that Mr. Grossi was in Iran, the issue of access to individuals was never raised,” Kamalvandi told state news agency IRNA, adding there also has been no deal regarding putting new cameras in Iran’s nuclear facilities.

    Follow-up talks in Iran between IAEA and Iranian officials aimed at hammering out the details would happen “very, very soon”, Grossi said.

    Asked if all that monitoring equipment would be re-installed, Grossi replied “Yes”. When asked where it would be re-installed, however, he said only that it would be at a number of locations.

    Reporting by Francois Murphy; Editing by Louise Heavens and David Holmes

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  • Analysis: Putin’s nuclear treaty move raises stakes over China’s growing arsenal

    Analysis: Putin’s nuclear treaty move raises stakes over China’s growing arsenal

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    • Efforts to nudge China to nuclear talks now harder -analysts
    • China warhead stocks rise but still far below U.S., Russia
    • Long term ‘no first use’ policy in question amid build-up

    HONG KONG, Feb 22 (Reuters) – Russia’s suspension of its last remaining nuclear weapons treaty with the United States may have dashed any hopes of dragging China to the table to start talking about its own rapidly accelerating nuclear arms programmes.

    Regional diplomats and security analysts had held out the prospect of China somehow being convinced to join U.S.-Russian talks on extending the New START arms control treaty ahead of its expiry in 2026 as a way of alleviating growing fears over Beijing’s rapid military modernisation.

    China’s nuclear arsenal sits at the core of those concerns as it grows in size and sophistication – an expansion that the United States recently noted is now gathering pace.

    The Pentagon’s annual China report released last November noted that Beijing appeared to accelerate its expansion in 2021 and now has more than 400 operational nuclear warheads – a figure still far below U.S. and Russian arsenals both deployed and in reserve.

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    By 2035 – when the ruling Communist Party’s leadership wants its military to be fully modernised – China will likely possess a 1,500 nuclear warhead stockpile and an advanced array of missiles, the Pentagon says.

    “Compared to traditional Russian-U.S. exchanges, China is a black box – but one getting bigger every year,” an Asian security diplomat said on Wednesday.

    “Putin’s suspension may have set us further back in terms of getting China to step up to the transparency table. There is so much we need to know about its policies and intentions.”

    In a speech ahead of the first anniversary on Friday of Russia’s invasion of Ukraine, President Vladimir Putin announced Moscow was suspending a treaty signed in 2010 that caps at 1,550 the number of strategic nuclear warheads the United States and Russia can each deploy while providing for mutual inspections.

    Analysts said the move could imperil the delicate calculus that underpins mutual deterrence between the two countries, long the largest nuclear powers by far, and spark an arms race among other nuclear states.

    Tong Zhao, a U.S.-based nuclear expert at the Carnegie Endowment for International Peace, said he believed Putin’s move limits the prospects of U.S.-China nuclear cooperation.

    “This is only going to make China even less interested in pursuing cooperative nuclear security with the United States,” Zhao told Reuters. “Now even this last example of arms control cooperation is being seriously undermined.”

    NO FIRST USE

    A nuclear power since the early 1960s, China for decades maintained a small number of nuclear warheads and missiles as a deterrent under its unique “no first use” pledge.

    That pledge remains official policy but the arsenal that surrounds it has grown rapidly in recent years as part of Beijing’s broader military modernization under President Xi Jinping.

    The People’s Liberation Army now has the ability to launch long-range nuclear-armed missiles from submarines, aircraft and an expanding range of silos in China’s interior – a “nuclear triad” that some experts fear could be used, for example, to coerce rivals in a conflict over Taiwan.

    The Pentagon also warns of possible conditions over “no first use” as the build-up continues – questions that echo many raised by regional military attaches and security scholars.

    “Beijing probably would also consider nuclear use to restore deterrence if a conventional military defeat gravely threatened PRC survival,” the Pentagon report notes, using the initials for China’s official name.

    A month earlier, Washington’s Nuclear Posture Review said Beijing is reluctant to engage in strategic nuclear discussions but that both bilateral and multilateral talks are needed.

    “The scope and pace of the PRC’s nuclear expansion, as well as its lack of transparency and growing military assertiveness, raise questions regarding its intentions, nuclear strategy and doctrine, and perceptions of strategic stability,” it said.

    Some experts believe Beijing has long been wary of being bound by any three-way talks with Russia and the United States given how far it remains behind U.S. capabilities, at least for another decade or more.

    FAILURE TO COMMUNICATE

    Academics familiar with once-regular unofficial and semi-official exchanges – so-called Track 2 and Track 1.5 discussions – with Chinese counterparts over nuclear policy say they have dried up over the last five years amid wider political tensions.

    Singapore-based strategic adviser Alexander Neill said he believed China might increasingly support Russia’s position rhetorically, while feeling emboldened to further accelerate its own build-up.

    That would make it harder for the United States and its allies to engage Beijing on its nuclear doctrine, particularly on “no first use”.

    “China has been consistent in supporting arms control between the U.S. and Russia and has long wanted to maintain the image of being a responsible stakeholder – but there are growing questions about the future,” said Neill, an adjunct fellow with Hawaii’s Pacific Forum think-tank.

    “The aim of the U.S. and its allies is to get crystal clarity over its ‘no first use’ policy because there’s the Taiwan question,” he said, referring to the democratically governed island that Beijing sees as its own territory.

    Carnegie’s Zhao said Putin’s announcement might increase the risk of inciting other nuclear powers to expand their nuclear arsenals and break long-held commitments not to stage fresh tests.

    “If that happens, it is a very negative development in terms of international … nuclear order.”

    Reporting By Greg Torode in Hong Kong and Martin Quin Pollard in Beijing; editing by Nick Macfie and Mark Heinrich

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  • Host India doesn’t want G20 to discuss further Russia sanctions – sources

    Host India doesn’t want G20 to discuss further Russia sanctions – sources

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    BENGALURU, Feb 22 (Reuters) – India does not want the G20 to discuss additional sanctions on Russia for its invasion of Ukraine during New Delhi’s one-year presidency of the bloc, six senior Indian officials said on Wednesday, amid debate over how even to describe the conflict.

    On the sidelines of a G20 gathering in India, financial leaders of the Group of Seven (G7) nations will meet on Feb. 23, the eve of the first anniversary of the invasion, to discuss measures against Russia, Japan’s finance minister said on Tuesday.

    The officials, who are directly involved in this week’s G20 meeting of finance ministers and central bank chiefs, said the economic impact of the conflict would be discussed but India did not want to consider additional actions against Russia.

    “India is not keen to discuss or back any additional sanctions on Russia during the G20,” said one of the officials. “The existing sanctions on Russia have had a negative impact on the world.”

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    Another official said sanctions were not a G20 issue. “G20 is an economic forum for discussing growth issues.”

    Spokespeople for the Indian government and the finance and foreign ministries did not immediately respond to requests for comment.

    On Wednesday, the first day of meetings to draft the G20 communique, officials struggled to find an acceptable word to describe the Russia-Ukraine conflict, delegates of at least seven countries present in the meetings said.

    India tried to form a consensus on the words by calling it a “crisis” or a “challenge” instead of a “war”, the officials said, but the discussions concluded without a decision.

    These discussions have been rolled over to Thursday when U.S. Treasury Secretary Janet Yellen will be part of the meetings.

    Indian Foreign Minister S. Jaishankar has previously said the war has disproportionately hit poorer countries by raising prices of fuel and food.

    India’s neighbours – Sri Lanka, Pakistan and Bangladesh – have all sought loans from the International Monetary Fund in recent months to tide over economic troubles brought about by the pandemic and the war.

    U.S. Deputy Treasury Secretary Wally Adeyemo said on Tuesday that Washington and its allies planned in coming days to impose new sanctions and export controls that would target Russia’s purchase of dual-use goods like refrigerators and microwaves to secure semiconductors needed for its military.

    The sanctions would also seek to do more to stem the trans-shipment of oil and other restricted goods through bordering countries.

    In addition, Adeyemo said officials from a coalition of more than 30 countries would warn companies, financial institutions and individuals still doing business with Russia that they faced sanctions.

    Indian Prime Minister Narendra Modi’s government has not openly criticised Moscow for the invasion and instead called for dialogue and diplomacy to end the war. India has also sharply raised purchases of oil from Russia, its biggest supplier of defence hardware.

    Jaishankar told Reuters partner ANI this week that India’s relationship with Russia had been “extraordinarily steady and it has been steady through all the turbulence in global politics”.

    Additional reporting by Krishn Kaushik; Writing by Krishna N. Das; Editing by Raju Gopalakrishnan and Nick Macfie

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  • CIA chief warns against underestimating Xi’s ambitions toward Taiwan

    CIA chief warns against underestimating Xi’s ambitions toward Taiwan

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    WASHINGTON, Feb 2 (Reuters) – U.S. Central Intelligence Agency Director William Burns said on Thursday that Chinese President Xi Jinping’s ambitions toward Taiwan should not be underestimated, despite him likely being sobered by the performance of Russia’s military in Ukraine.

    Burns said that the United States knew “as a matter of intelligence” that Xi had ordered his military to be ready to conduct an invasion of self-governed Taiwan by 2027.

    “Now, that does not mean that he’s decided to conduct an invasion in 2027, or any other year, but it’s a reminder of the seriousness of his focus and his ambition,” Burns told an event at Georgetown University in Washington.

    “Our assessment at CIA is that I wouldn’t underestimate President Xi’s ambitions with regard to Taiwan,” he said, adding that the Chinese leader was likely “surprised and unsettled” and trying to draw lessons by the “very poor performance” of the Russian military and its weapons systems in Ukraine.

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    Russia and China signed a “no limits” partnership last February shortly before Russian forces invaded Ukraine, and their economic links have boomed as Russia’s connections with the West have shriveled.

    The Russian invasion had fueled concerns in the West of China possibly making a similar move on Taiwan, a democratic island Beijing says is its territory.

    China has refrained from condemning Russia’s operation against Ukraine, but it has been careful not to provide the sort of direct material support which could provoke Western sanctions like those imposed on Moscow.

    “I think it’s a mistake to underestimate the mutual commitment to that partnership, but it’s not a friendship totally without limits,” Burns said.

    As Burns spoke, news came from U.S. officials that a suspected Chinese spy balloon had been flying over the United States for a few days, and that senior U.S. officials had advised President Joe Biden against shooting it down for fear the debris could pose a safety threat.

    Burn made no mention of the episode but called China the “biggest geopolitical challenge” currently faced by the United States.

    “Competition with China is unique in its scale, and that it really, you know, unfolds over just about every domain, not just military, and ideological, but economic, technological, everything from cyberspace, to space itself as well. It’s a global competition in ways that could be even more intense than competition with the Soviets was,” he said.

    There was no immediate comment from China’s Washington embassy about the remarks from Burns or the balloon flight.

    Burns said the next six months will be “critical” for Ukraine, where Moscow has been making incremental gains in recent weeks.

    He also said Iran’s government was increasingly unsettled by affairs within the country, citing the courage of what he described as “fed up” Iranian women.

    Reporting by Michael Martina, Rami Ayyub, David Brunnstrom and Phil Stewart; Editing by Christopher Cushing

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  • Factbox: High-altitude spy balloons: old concept, new applications

    Factbox: High-altitude spy balloons: old concept, new applications

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    Feb 3 (Reuters) – U.S. officials said on Thursday that a Chinese “surveillance balloon” has been flying over the United States for several days.

    Using high-altitude balloons for spying and other military missions is a practice that dates to the middle of the last century. Here is what is known about how they operate and what they can be used for:

    * During World War 2, the Japanese military tried to loft incendiary bombs into U.S. territory using balloons designed to float in jet stream air currents. No military targets were damaged, but several civilians were killed when one of the balloons crashed in an Oregon forest.

    * Just after World War 2, the U.S. military started exploring the use of high-altitude spy balloons, which led to a large-scale series of missions called Project Genetrix. The project flew photographic balloons over Soviet bloc territory in the 1950s, according to government documents.

    A balloon flies in the sky over Billings, Montana, U.S. February 1, 2023 in this picture obtained from social media. Chase Doak/via REUTERS

    * Such balloons typically operate at 80,000-120,000 feet (24,000-37,000m), well above where commercial air traffic flies – airliners almost never fly higher than 40,000 feet. The highest-performing fighter aircraft typically do not operate above 65,000 feet, although spy planes such as the U-2 have a service ceiling of 80,000 feet or more.

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    * The advantages of balloons over satellites include the ability to scan wide swathes of territory from closer in, and to be able to spend more time over a target area, according to a 2009 report to the U.S. Air Force’s Air Command and Staff College.

    * Unlike satellites, which require space launchers that cost hundreds of millions of dollars, balloons can be launched cheaply.

    * The balloons are not directly steered, but can be roughly guided to a target area by changing altitudes to catch different wind currents, according to a 2005 study for the Air Force’s Airpower Research Institute.

    * The U.S. military has tracked other spy balloons in recent years, including before President Joe Biden’s administration, according to a senior U.S. defense official.

    Reporting by Gerry Doyle;
    Editing by Don Durfee and Stephen Coates

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  • India makes COVID test mandatory for arrivals from some countries, including China

    India makes COVID test mandatory for arrivals from some countries, including China

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    NEW DELHI, Dec 24 (Reuters) – India has mandated a COVID-19 negative test report for travelers arriving from China, Japan, South Korea, Hong Kong and Thailand, the health minister said on Saturday.

    Passengers from those countries would be put under quarantine if they showed symptoms of COVID-19 or tested positive, Minister Mansukh Mandaviya said.

    (This story has been refiled to correct grammar in paragraph 2)

    Reporting by Munsif Vengattil in New Delhi

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  • U.S. forces launch space unit in South Korea amid North’s growing threats

    U.S. forces launch space unit in South Korea amid North’s growing threats

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    SEOUL, Dec 14 (Reuters) – U.S. Forces Korea launched a new space forces unit on Wednesday as the allies ramp up efforts to better counter North Korea’s evolving nuclear and missile threats.

    The U.S. Space Forces Korea is the second overseas space component of the U.S. Space Force and is tasked with monitoring, detecting and tracking incoming missiles, as well as bolstering the military’s overall space capability. It will be led by Lt. Col. Joshua McCullion.

    U.S. Forces Korea commander Gen. Paul LaCamera said the unit would enhance the U.S. ability to ensure peace and security on the Korean peninsula and in Northeast Asia.

    “The U.S. military is faster, better connected, more informed, precise and legal because of space,” LaCamera told a ceremony at Osan Air Base in the South Korean city of Pyeongtaek.

    Seoul and Washington are seeking to boost security cooperation to deter North Korea, which this year has tested intercontinental ballistic missiles capable of reaching the U.S. mainland.

    South Korea’s air force also set up its own space unit this month to bolster its space power and operation capability together with the U.S. Space Force.

    U.S. officials have expressed concerns over rising security activity in space by major rivals, including China’s development of hypersonic weapons and Russia’s test of anti-satellite technology last year.

    Beijing has warned Seoul against joining a U.S.-led global missile shield, and criticised the THAAD U.S. missile defence system installed in South Korea.

    Seoul’s defence ministry said the creation of the U.S. space component had nothing to do with South Korea’s participation in existing missile defence programmes.

    Around 28,500 U.S. troops are stationed in South Korea under a mutual defence treaty forged after the 1950-1953 Korean War ended in an armistice, not a peace treaty.

    The U.S. Indo-Pacific Command and Central Command set up their space units last month in Hawaii and Florida.

    Reporting by Hyonhee Shin; Additional reporting by Hyunyoung Yi; Editing by Gerry Doyle and Edmund Klamann

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  • Medical staff in China’s hospitals say COVID-19 ripping through their ranks

    Medical staff in China’s hospitals say COVID-19 ripping through their ranks

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    HONG KONG, Dec 14 (Reuters) – A growing number of China’s doctors and nurses are catching COVID-19 and some have been asked to keep working, as people showing mostly moderate symptoms throng hospitals and clinics, according to medical staff and dozens of posts on social media.

    China’s health authority did not immediately respond to a request for comment on infections among medical staff.

    Health experts say China’s sudden loosening of strict COVID rules is likely to trigger a surge in severe cases in coming months, and hospitals in big cities are already showing signs of strain.

    Reuters was unable to immediately get verification from hospitals on waiting times and bed utilisation rates, but photographs circulated on social media showed patients in Beijing and neighbouring Baoding waiting for hours to get treated.

    Health officials have been recommending that people with mild COVID symptoms quarantine at home and have also said most of the cases reported in the country are mild or asymptomatic.

    “Our hospital is overwhelmed with patients. There are 700, 800 people with fever coming every day,” said a doctor surnamed Li at a tertiary hospital in Sichuan province.

    “We are running out of medicine stocks for fever and cold, now waiting for delivery from our suppliers. A few nurses at the fever clinic were tested positive, there aren’t any special protective measures for hospital staff and I believe many of us will soon get infected,” Li added.

    A nurse at another hospital in Chengdu said: “I was swamped with nearly 200 patients with COVID symptoms last night.”

    Ben Cowling, an epidemiologist at Hong Kong University, said insufficient medical resources to cope with an overload of COVID cases contributed to a surge in deaths in Hong Kong when infections peaked there earlier this year, and he warned that the same was going to happen in China.

    “One of the reasons we had such a high mortality rate (in Hong Kong) is because we simply didn’t have enough hospital resources to cope in the surge. And unfortunately, that is what is going to happen in about one to two months time in the mainland,” Cowling said.

    He said a surge in severe cases coupled with a surge of mild cases among the elderly who needed monitoring overwhelmed Hong Kong’s hospitals, and recommended separate isolation facilities for the elderly with mild cases to free up hospital beds.

    State media Xinhua reported on Tuesday in capital Beijing 50 patients are currently in a serious or critical condition in hospital with COVID.

    ‘WHAT A MESS’

    The sudden loosening of restrictions has sparked long queues outside fever clinics since last week in a worrying sign that a wave of infections is building, even though official tallies of new cases have trended lower recently as authorities eased back on testing.

    Some hospitals in Beijing have up to 80% of their staff infected, but many of them are still required to work due to staff shortages, a doctor in a large public hospital in Beijing told Reuters, adding he has spoken to his peers at other big hospitals in the capital.

    All operations and surgeries have been cancelled at his hospital unless the patient is “dying tomorrow”, he said, declining to be named due to the sensitivity of the subject.

    A post on the Weibo social media platform recounted a recent experience at the emergency ward at Beijing Hospital.

    “Those who have not been to the emergency department of Beijing Hospital don’t know what a mess it has become,” wrote a Weibo user called Moshang. The post went on to say that people in serious need of surgery were being made to wait.

    Beijing Hospital did not immediately respond to a Reuters’ request for comment.

    Wan Ling, a head nurse at a hospital in Huashan in China’s Anhui province, wrote on Weibo that many of her infected colleagues were relatively serious and had high fever.

    Several doctors from Wuhan province’s top public hospital Tongji have also tested positive for COVID-19, but since Sunday have not been allowed to take leave, a pharmaceutical sales representative with direct knowledge of the matter told Reuters, declining to be named, as the information is not public.

    “They have to stay at work while they are sick,” said the person who regularly visits the hospital and spoke to its doctors recently.

    Tongji hospital did not immediately respond to a Reuters request for comment.

    Reporting by the Beijing newsroom, David Stanway and the Shanghai newsroom, Julie Zhu and Selena Li in Hong Kong; Writing by Farah Master; Editing by Miyoung Kim & Simon Cameron-Moore

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  • Analysis: China’s massive older chip tech buildup raises U.S. concern

    Analysis: China’s massive older chip tech buildup raises U.S. concern

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    OAKLAND, Calif./SHANGHAI/WASHINGTON Dec 13 (Reuters) – China’s largest chip maker SMIC (0981.HK) is ramping up production of a decade-old chip technology, key to many industries’ supply chains, setting off alarm bells in the United States and prompting some lawmakers to try to stop them.

    The United States and allied nations could further step up restrictions if China announces a trillion yuan ($144 billion) support package for its chip industry, as Reuters exclusively reported on Tuesday, said TechInsights’ chip economist Dan Hutcheson.

    Starting with the Trump administration, the United States has been tightening the noose around China’s high-tech ambitions. It cut off the world’s largest telecommunications firm Huawei Technologies from the U.S. market and technologies, as well as cut off air supply to China’s advanced chip making through a series of rules this year.

    But why worry about older chip technology?

    China, which in 2020 had 9% of the global chip market, has a track record of dominating key technologies by flooding the market with cheaper products and wiping out global competition, say China watchers.

    They did it with solar panels and 5G telecom equipment, and could do it with older technology chips, said Matt Pottinger, former Deputy National Security Advisor of the United States during the Trump administration who has been studying chip policy at the Hoover Institution.

    “It would give Beijing coercive leverage over every country and industry – military or civilian – that depend on 28 nanometer chips, and that’s a big, big chunk of the chip universe,” he said.

    “28 nanometer” refers to a chip technology commercially used since 2011. It is still widely used in automotive, weapons and the explosive category of internet of things gadgets, said Hutcheson.

    Hutcheson, who has been monitoring chip production capacity for four decades, said the concern is that Semiconductor Manufacturing International Corp (0981.HK) and other chipmakers in China could use government subsidies to sell chips at a low price. And a possible new round of financial support from Beijing would increase chip production even further.

    “The Chinese could just flood the market with these technologies,” he said. “Normal companies can’t compete, because they can’t make money at those levels.”

    U.S. LAWMAKERS PUSHING AGAINST SMIC

    Those concerns have pushed some lawmakers to use legislation for setting the defense budget hold back SMIC.

    While the measure is weaker than what was initially proposed, this week U.S. Senators are expected to pass the annual National Defense Authorization Act 2023 that includes a section barring the U.S. government from using chips from SMIC and two other Chinese memory chip makers. It is not clear what impact the restriction, which kicks in five years after it becomes law, will have on SMIC.

    Founded in 2000 with backing from Beijing, SMIC has long struggled to break into the ranks of the world’s leading chip manufacturers.

    But it is a giant in older technology, including chips that regulate power flows in electronics. And its revenue was close to $2 billion in the third quarter this year, roughly double the same period last year on the back of the global chip shortage.

    SMIC FILLING SUPPLY GAP

    With U.S. export controls making it impossible to produce advanced chips, SMIC is doubling down on mature technology chips and has announced four new facilities, or fabs, since 2020. When those come online, it would more than triple the company’s output, estimates Samuel Wang, Gartner chip analyst. He said there is a huge ramp up in new chip fabs across China.

    “All this will start to have an impact from early 2024 and will be full blown by 2027,” said Wang, adding the chip supply increase will put downward pressure on chip prices.

    The importance of older chip technology hit the industry in the face in 2021 as a shortage of those chips prevented manufacturing of millions of cars and consumer electronics.

    Mark Li, Bernstein Research’s chip analyst in Asia, said the company is becoming a formidable competitor to Taiwan’s UMC Microelectronics Corp (6615.T) and U.S.-headquartered GlobalFoundries Inc (GFS.O).

    “SMIC has been much more willing to add capacity than other fabs at the low-end, and especially in this shortage we’ve seen in the past two years,” he says. “It’s not an issue now…but who knows, maybe in a few years there will be another shortage and capacity will be a big problem.”

    ($1 = 6.9430 Chinese yuan renminbi)

    Reporting By Jane Lanhee Lee in Oakland, Calif and Josh Horwitz in Shanghai, and Alexandra Alper in Washington D.C.; Editing by Josie Kao

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  • Exclusive: U.S. to remove some Chinese entities from red flag list soon, U.S. official says

    Exclusive: U.S. to remove some Chinese entities from red flag list soon, U.S. official says

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    WASHINGTON, Dec 14 (Reuters) – The Biden administration plans to remove some Chinese entities from a red flag trade list, a U.S. official told Reuters on Wednesday amid closer cooperation with Beijing.

    The plan to remove them soon from the so-called “unverified” list is thanks to greater willingness from the Chinese government to permit U.S. site visits, the person said.

    The Commerce Department declined to comment.

    Reuters could not determine the number or names of entities designated for removal.

    The decision signals a degree of renewed cooperation between Washington and Beijing, the world’s largest economies which are locked in a heated trade and technology war.

    The decision, which mean U.S. exporters will no longer have to conduct additional due diligence before sending goods to the Chinese entities, may not herald a broader thaw.

    Asked about the decision at a Chinese foreign ministry briefing on Thursday, spokesman Wang Wenbin said they urged the United States to stop taking unfair and discriminatory practices against certain Chinese companies.

    “China will continue to uphold the legitimate and justified interests of Chinese companies,” he said.

    The Biden administration is also expected to add Chinese memory chipmaker YMTC to a tougher export control list as soon as this week, according to another person familiar with the matter.

    YMTC did not immediately respond to a request for comment.

    Companies are added to the unverified list because the United States cannot complete on-site visits to determine whether they can be trusted to receive sensitive U.S. technology exports. Such U.S. inspections in China require the approval of China’s commerce ministry.

    Under new rules announced in October, if a government prevents U.S. officials from conducting site checks at companies on the unverified list, Washington may after 60 days add them to the entity list, which means much tougher penalties.

    “The goal of (that rule) was to drive better behavior from countries that were not allowing end-use checks,” U.S. export control chief Alan Estevez said at an event earlier this month. “We are seeing better behavior,” he said, specifically singling out Beijing.

    In October, YMTC was added to the unverified list along with dozens of other Chinese entities, fueling widespread speculation that the company would be added to the entity list. Suppliers are barred from shipping U.S. technology to entity-listed companies unless the suppliers can attain a difficult-to-obtain license.

    A person familiar with the matter said YMTC was among some companies that received site visits in late November, suggesting that the chipmaker’s expected addition to the entity list may be related to other matters.

    YMTC was already under investigation by the Commerce Department over allegations it violated U.S. export rules by supplying chips to entity-listed Chinese telecoms equipment giant Huawei without a license.

    U.S. lawmakers from both political parties have called on the Biden administration to add YMTC to the list. Its planned addition was first reported by the Financial Times.

    Reporting by Alexandra Alper and Karen Freifeld; Additional reporting by Eduardo Baptista in Beijing; Editing by Chris Sanders, Howard Goller and Raissa Kasolowsky

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  • Vietnam in big push to expand South China Sea outposts – U.S. think tank

    Vietnam in big push to expand South China Sea outposts – U.S. think tank

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    WASHINGTON, Dec 14 (Reuters) – Vietnam has conducted a major expansion of dredging and landfill work at several of its South China Sea outposts in the second half of this year, signaling an intent to significantly fortify its claims in the disputed waterway, a U.S. think tank reported on Wednesday.

    Washington’s Center for Strategic and International Studies (CSIS) said the work in the Spratly Islands, which are also claimed by China and others, had created roughly 420 acres (170 hectares) of new land and brought the total area Vietnam had reclaimed in the past decade to 540 acres (220 hectares).

    Basing its findings on commercial satellite imagery, CSIS’s Asia Maritime Transparency Initiative (AMTI) said the effort included expanded landfill work at four features and new dredging at five others.

    “The scale of the landfill work, while still falling far short of the more than 3,200 acres of land created by China from 2013 to 2016, is significantly larger than previous efforts from Vietnam and represents a major move toward reinforcing its position in the Spratlys,” the report said.

    Vietnam’s Washington embassy did not immediately respond to a request for comment on the report.

    AMTI said Vietnam’s midsized outposts at Namyit Island, Pearson Reef and Sand Cay were undergoing major expansions, with a dredged port capable of hosting larger vessels already taking shape at Namyit and Pearson.

    Namyit Island, at 117 acres (47 hectares) and Pearson Reef, at 119 acres (48 hectares), were both now larger than Spratly Island at 97 acres (39 hectares), which had been Vietnam’s largest outpost. Tennent Reef, which previously only hosted two small pillbox structures, now had 64 acres (26 hectares)of artificial land, the report said.

    AMTI said Vietnam used clamshell dredgers to scoop up sections of shallow reef and deposit the sediment for landfill, a less destructive process than the cutter-suction dredging China had used to build its artificial islands.

    “But Vietnam’s dredging and landfill activities in 2022 are substantial and signal an intent to significantly fortify its occupied features in the Spratlys,” the report said.

    “(W)hat infrastructure the expanded outposts will host remains to be seen. Whether and to what degree China and other claimants react will bear watching,” it said.

    China claims most of the South China Sea and has established military outposts on artificial islands it has built there. Taiwan, Vietnam, Malaysia, Brunei and the Philippines all have overlapping claims in the sea, which is crisscrossed by vital shipping lanes and contains gas fields and rich fishing grounds.

    Reporting by David Brunnstrom; editing by Jonathan Oatis

    Our Standards: The Thomson Reuters Trust Principles.

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  • China’s Xi unwilling to accept western vaccines, U.S. official says

    China’s Xi unwilling to accept western vaccines, U.S. official says

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    WASHINGTON, Dec 3 (Reuters) – Chinese leader Xi Jinping is unwilling to accept Western vaccines despite the challenges China is facing with COVID-19, and while recent protests there are not a threat to Communist Party rule, they could affect his personal standing, U.S. Director of National Intelligence Avril Haines said on Saturday.

    Although China’s daily COVID cases are near all-time highs, some cities are taking steps to loosen testing and quarantine rules after Xi’s zero-COVID policy triggered a sharp economic slowdown and public unrest.

    Haines, speaking at the annual Reagan National Defense Forum in California, said that despite the social and economic impact of the virus, Xi “is unwilling to take a better vaccine from the West, and is instead relying on a vaccine in China that’s just not nearly as effective against Omicron.”

    “Seeing protests and the response to it is countering the narrative that he likes to put forward, which is that China is so much more effective at government,” Haines said.

    “It’s, again, not something we see as being a threat to stability at this moment, or regime change or anything like that,” she said, while adding: “How it develops will be important to Xi’s standing.”

    China’s foreign ministry did not immediately respond to a request for comment sent on Sunday.

    China has not approved any foreign COVID vaccines, opting for those produced domestically, which some studies have suggested are not as effective as some foreign ones. That means easing virus prevention measures could come with big risks, according to experts.

    China had not asked the United States for vaccines, the White House said earlier in the week.

    One U.S. official told Reuters there was “no expectation at present” that China would approve western vaccines.

    “It seems fairly far-fetched that China would greenlight Western vaccines at this point. It’s a matter of national pride, and they’d have to swallow quite a bit of it if they went this route,” the official said.

    Haines also said North Korea recognized that China was less likely to hold it accountable for what she said was Pyongyang’s “extraordinary” number of weapons tests this year.

    Amid a record year for missile tests, North Korean leader Kim Jong Un said last week his country intends to have the world’s most powerful nuclear force.

    Speaking on a later panel, Admiral John Aquilino, the commander of the U.S. Indo-Pacific Command, said China had no motivation to restrain any country, including North Korea, that was generating problems for the United States.

    “I’d argue quite differently that it’s in their strategy to drive those problems,” Aquilino said of China.

    He said China had considerable leverage to press North Korea over its weapons tests, but that he was not optimistic about Beijing “doing anything helpful to stabilize the region.”

    Reporting by Michael Martina, David Brunnstrom, Idrees Ali, and Eric Beech; Additional reporting by Martin Quin Pollard in Beijing; Editing by Sandra Maler and Lincoln Feast

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  • U.S. may skirt recession in 2023, Europe not so lucky – Morgan Stanley

    U.S. may skirt recession in 2023, Europe not so lucky – Morgan Stanley

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    TOKYO, Nov 14 (Reuters) – Britain and the euro zone economies are likely to tip into recession next year, Morgan Stanley said, but the United States might make a narrow escape thanks to a resilient job market.

    At the same time, China’s expected reopening after almost three years of COVID-19 curbs is set to lead a recovery in its own economy and other emerging Asian markets, the investment bank’s analysts said in a series of reports published on Sunday.

    “Risks are to the downside,” the reports said, projecting the global economy to grow by 2.2% next year, lower than the International Monetary Fund’s latest 2.7% growth estimate. read more

    Next year, Morgan Stanley predicts a sharp split between developed economies “in or near recession” while emerging economies “recover modestly” but said an overall global pickup would likely remain elusive. China’s economy was predicted to grow 5% in 2023, outpacing the average 3.7% growth expected for emerging markets, while the average growth in the Group of 10 developed countries was forecast at just 0.3%.

    Central banks across the globe have raised interest rates this year to curb raging inflation, and in the United States, Morgan Stanley predicted the Federal Reserve to keep rates high in 2023 as inflation remains strong after peaking in the fourth quarter of this year.

    “The U.S. economy just skirts recession in 2023, but the landing doesn’t feel so soft as job growth slows meaningfully and the unemployment rate continues to rise,” the report said, predicting a 0.5% expansion next year.

    “The cumulative effect of tight policy in 2023 spills over into 2024, resulting in two very weak years,” the report added.

    Globally too, the peak in inflation should come in the current quarter, the analysts said, “with disinflation driving the narrative next year”.

    • U.S. core inflation to fall to 2.9% at end-2023, headline inflation to 1.9%
    • Asia growth to dip to 3.4% in 1H23 before recovering to 4.6% in 2H23, fuelled by domestic demand
    • Cross-asset returns – especially in fixed income – will look much better in 2023 than in 2022, driven by cheaper starting valuations
    • High-grade fixed income to outperform global equities
    • EM and Japan stocks to outperform, with U.S. shares lagging

    Reporting by Kevin Buckland, editing by Miral Fahmy

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  • Biden and Xi clash over Taiwan in Bali but Cold War fears cool

    Biden and Xi clash over Taiwan in Bali but Cold War fears cool

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    • Biden, Xi meet for 3 hours before G20
    • Both leaders stress need to get ties back on track
    • Indonesia seeks partnerships on global economy at G20
    • Ukraine’s Zelenskiy to address G20 on Tuesday

    NUSA DUA, Indonesia, Nov 14 (Reuters) – U.S. President Joe Biden and Chinese President Xi Jinping engaged in blunt talks over Taiwan and North Korea on Monday in a three-hour meeting aimed at preventing strained U.S.-China ties from spilling into a new Cold War.

    Amid simmering differences on human rights, Russia’s invasion of Ukraine, and support of domestic industry, the two leaders pledged more frequent communications. U.S. Secretary of State Antony Blinken will travel to Beijing for follow-up talks.

    “We’re going to compete vigorously. But I’m not looking for conflict, I’m looking to manage this competition responsibly,” Biden said after his talks with Xi on the sidelines of the G20 summit in Indonesia.

    Beijing has long said it would bring the self-governed island of Taiwan, which it views as an inalienable part of China, under its control and has not ruled out the use of force to do so. It has frequently accused the United States in recent years of encouraging Taiwan independence.

    In a statement after their meeting, Xi called Taiwan the “first red line” that must not be crossed in U.S.-China relations, Chinese state media said.

    Biden said he sought to assure Xi that U.S. policy on Taiwan, which has for decades been to support both Beijing’s ‘One China’ stance and Taiwan’s military, had not changed.

    He said there was no need for a new Cold War, and that he did not think China was planning a hot one.

    “I do not think there’s any imminent attempt on the part of China to invade Taiwan,” he told reporters.

    On North Korea, Biden said it was hard to know whether Beijing had any influence over Pyongyang weapons testing. “Well, first of all, it’s difficult to say that I am certain that China can control North Korea,” he said.

    Biden said he told Xi the United States would do what it needs to do to defend itself and allies South Korea and Japan, which could be “maybe more up in the face of China” though not directed against it.

    “We would have to take certain actions that would be more defensive on our behalf… to send a clear message to North Korea. We are going to defend our allies, as well as American soil and American capacity,” he said.

    Biden’s national security adviser Jake Sullivan said before the meeting that Biden would warn Xi about the possibility of enhanced U.S. military presence in the region, something Beijing is not keen to see.

    Beijing had halted a series of formal dialogue channels with Washington, including on climate change and military-to-military talks, after U.S. House of Representatives Speaker Nancy Pelosi upset China by visiting Taiwan in August.

    Biden and Xi agreed to allow senior officials to renew communication on climate, debt relief and other issues, the White House said after they spoke.

    Xi’s statement after the talks included pointed warnings on Taiwan.

    “The Taiwan question is at the very core of China’s core interests, the bedrock of the political foundation of China-U.S. relations, and the first red line that must not be crossed in China-U.S. relations,” Xi was quoted as saying by Xinhua news agency.

    “Resolving the Taiwan question is a matter for the Chinese and China’s internal affair,” Xi said, according to state media.

    Taiwan’s democratically elected government rejects Beijing’s claims of sovereignty over it.

    Taiwan’s presidential office said it welcomed Biden’s reaffirmation of U.S. policy. “This also once again fully demonstrates that the peace and stability of the Taiwan Strait is the common expectation of the international community,” it said.

    SMILES AND HANDSHAKES

    Before their talks, the two leaders smiled and shook hands warmly in front of their national flags at a hotel on Indonesia’s Bali island, a day before a Group of 20 (G20) summit set to be fraught with tension over Russia’s invasion of Ukraine.

    “It’s just great to see you,” Biden told Xi, as he put an arm around him before their meeting.

    Biden brought up a number of difficult topics with Xi, according to the White House, including raising U.S. objections to China’s “coercive and increasingly aggressive actions toward Taiwan,” Beijing’s “non-market economic practices,” and practices in “Xinjiang, Tibet, and Hong Kong, and human rights more broadly.”

    Neither leader wore a mask to ward off COVID-19, although members of their delegations did.

    U.S.-China relations have been roiled in recent years by growing tensions over issues ranging from Hong Kong and Taiwan to the South China Sea, trade practices, and U.S. restrictions on Chinese technology.

    But U.S. officials said there have been quiet efforts by both Beijing and Washington over the past two months to repair relations.

    U.S. Treasury Secretary Janet Yellen told reporters in Bali earlier that the meeting aimed to stabilise the relationship and to create a “more certain atmosphere” for U.S. businesses.

    She said Biden had been clear with China about national security concerns regarding restrictions on sensitive U.S. technologies and had raised concern about the reliability of Chinese supply chains for commodities.

    G20 summit host President Joko Widodo of Indonesia said he hoped the gathering on Tuesday could “deliver concrete partnerships that can help the world in its economic recovery”.

    However, one of the main topics at the G20 will be Russia’s war in Ukraine.

    Xi and Putin have grown close in recent years, bound by their shared distrust of the West, and reaffirmed their partnership just days before Russia invaded Ukraine. But China has been careful not to provide any direct material support that could trigger Western sanctions against it.

    Reporting by Nandita Bose, Stanley Widianto, Fransiska Nangoy, Leika Kihara, David Lawder and Simon Lewis in Nusa Dua, and Yew Lun Tian and Ryan Woo in Beijing; additional reporting by Jeff Mason and Steve Holland in Washington; Writing by Kay Johnson and Raju Gopalakrishnan; Editing by Angus MacSwan, Grant McCool, Heather Timmons and Rosalba O’Brien

    Our Standards: The Thomson Reuters Trust Principles.

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