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  •   China s huge military drills around Taiwan have only made allies more determined to visit the island democracy and show solidarity Taipei s foreign minister Joseph Wu said Friday Beijing staged the unprecedented sea and air drills in retaliation for US House Speaker Nancy Pelosi s visit to Taiwan this month sending tensions to their highest level in decades Three US politicians have visited in Pelosi s wake the latest being Tennessee senator Marsha Blackburn who met with Taiwanese President Tsai Ing wen on Friday We will not stop making friends just because of the Chinese threats against Taiwan Wu told a briefing with foreign media Taiwan lives under constant threat of an invasion by China which claims the self ruled island as part of its territory to be seized one day by force if necessary Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians Wu said China s show of force had been counter productive and there will be more visits to Taiwan by international dignitaries Because of the military pressure that China has demonstrated against Taiwan there are more people than ever who want to come and show their support Wu said A lot of international friends have already told us that they are very interested to come to Taiwan and the purpose is very simple just to show solidarity Blackburn a Republican and staunch supporter of former US president Donald Trump has said her trip was designed to send a message to Beijing we will not be bullied These warm acts of kindness and firm demonstrations of support have reinforced Taiwan s determination to defend itself Tsai said in her meeting with Blackburn Another congressional delegation led by Senator Ed Markey visited Taiwan shortly after Pelosi while China was still holding its military exercises Then this week Indiana s Republican governor Eric Holcomb arrived on the heels of the announcement of trade talks between Washington and Taipei in the coming months
    Taiwan says China drills deepened international solidarity
      China s huge military drills around Taiwan have only made allies more determined to visit the island democracy and show solidarity Taipei s foreign minister Joseph Wu said Friday Beijing staged the unprecedented sea and air drills in retaliation for US House Speaker Nancy Pelosi s visit to Taiwan this month sending tensions to their highest level in decades Three US politicians have visited in Pelosi s wake the latest being Tennessee senator Marsha Blackburn who met with Taiwanese President Tsai Ing wen on Friday We will not stop making friends just because of the Chinese threats against Taiwan Wu told a briefing with foreign media Taiwan lives under constant threat of an invasion by China which claims the self ruled island as part of its territory to be seized one day by force if necessary Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians Wu said China s show of force had been counter productive and there will be more visits to Taiwan by international dignitaries Because of the military pressure that China has demonstrated against Taiwan there are more people than ever who want to come and show their support Wu said A lot of international friends have already told us that they are very interested to come to Taiwan and the purpose is very simple just to show solidarity Blackburn a Republican and staunch supporter of former US president Donald Trump has said her trip was designed to send a message to Beijing we will not be bullied These warm acts of kindness and firm demonstrations of support have reinforced Taiwan s determination to defend itself Tsai said in her meeting with Blackburn Another congressional delegation led by Senator Ed Markey visited Taiwan shortly after Pelosi while China was still holding its military exercises Then this week Indiana s Republican governor Eric Holcomb arrived on the heels of the announcement of trade talks between Washington and Taipei in the coming months
    Taiwan says China drills deepened international solidarity
    Foreign3 months ago

    Taiwan says China drills deepened international solidarity

    China’s huge military drills around Taiwan have only made allies more determined to visit the island democracy and show solidarity, Taipei’s foreign minister Joseph Wu said Friday.

    Beijing staged the unprecedented sea and air drills in retaliation for US House Speaker Nancy Pelosi’s visit to Taiwan this month, sending tensions to their highest level in decades.

    Three US politicians have visited in Pelosi’s wake, the latest being Tennessee senator Marsha Blackburn who met with Taiwanese President Tsai Ing-wen on Friday.

    “We will not stop making friends just because of the Chinese threats against Taiwan,” Wu told a briefing with foreign media.

    Taiwan lives under constant threat of an invasion by China, which claims the self-ruled island as part of its territory to be seized one day — by force if necessary.

    Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians.

    Wu said China’s show of force had been counter-productive and “there will be more” visits to Taiwan by international dignitaries.

    “Because of the military pressure that China has demonstrated against Taiwan, there are more people than ever who want to come and show their support,” Wu said.

    “A lot of international friends have already told us that they are very interested to come to Taiwan and the purpose is very simple — just to show solidarity.

    ” Blackburn, a Republican and staunch supporter of former US president Donald Trump, has said her trip was designed “to send a message to Beijing — we will not be bullied”.

    “These warm acts of kindness and firm demonstrations of support have reinforced Taiwan’s determination to defend itself,” Tsai said in her meeting with Blackburn.

    Another congressional delegation led by Senator Ed Markey visited Taiwan shortly after Pelosi while China was still holding its military exercises.

    Then this week Indiana’s Republican governor Eric Holcomb arrived on the heels of the announcement of trade talks between Washington and Taipei in the coming months.

  •  Taiwan announced plans for a record increase to its defence budget on Thursday after huge military drills by China earlier this month sent tensions between the two to their highest in decades Taipei has proposed a defence budget of Tw 415 1 billion 13 7 billion for next year up 13 percent year on year pending parliamentary approval An additional special budget will also be created specifically to acquire new fighter jets and other projects to boost naval and air capabilities the top budgeting agency said in a statement To protect national security the overall defence budget for next year will reach Tw 586 3 billion to a record high a cabinet spokesman quoted Premier Su Tseng chang as saying Taiwan lives under constant threat of invasion by China which claims the democratic island as part of its territory to be seized one day by force if necessary Beijing s sabre rattling has grown more pronounced under President Xi Jinping China s most assertive leader in a generation The bolstered military budget was unveiled after Beijing staged unprecedented exercises around Taiwan in retaliation for US House Speaker Nancy Pelosi s visit to Taipei earlier this month Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians For a week after Pelosi s visit China sent warships missiles and fighter jets into the waters and skies around Taiwan its largest and most aggressive exercises since the mid 1990s Even before this month s drills Beijing had increased military pressure on Taiwan in recent years particularly with incursions into the island s air defence identification zone ADIZ Last year Taiwan recorded incursions by around 970 Chinese warplanes into its air defence zone according to a database compiled by AFP more than double the roughly 380 in 2020 The figure this year already exceeded 980 with more than 360 incursions being recorded in August alone The increased activity puts further stress on Taiwan s outgunned military resources especially its ageing fleet of fighter jets There have been significant increases in operation maintenance in response to the cross strait situation as our aircraft and naval ships have been increasingly deployed budgeting chief Chu Tzer ming told reporters Historically Taiwan s military has favoured big ticket purchases like fighter jets and warships But American and Taiwanese strategists have increasingly pushed Taipei to adopt a porcupine strategy of asymmetric warfare That strategy emphasises purchasing comparatively inexpensive and mobile weapon systems like anti ship and aircraft missiles as well as training soldiers and civilian reservists to fight behind enemy lines to make an invasion a grim prospect even for China s huge military
    Taiwan announces plans for record defence budget after China drills
     Taiwan announced plans for a record increase to its defence budget on Thursday after huge military drills by China earlier this month sent tensions between the two to their highest in decades Taipei has proposed a defence budget of Tw 415 1 billion 13 7 billion for next year up 13 percent year on year pending parliamentary approval An additional special budget will also be created specifically to acquire new fighter jets and other projects to boost naval and air capabilities the top budgeting agency said in a statement To protect national security the overall defence budget for next year will reach Tw 586 3 billion to a record high a cabinet spokesman quoted Premier Su Tseng chang as saying Taiwan lives under constant threat of invasion by China which claims the democratic island as part of its territory to be seized one day by force if necessary Beijing s sabre rattling has grown more pronounced under President Xi Jinping China s most assertive leader in a generation The bolstered military budget was unveiled after Beijing staged unprecedented exercises around Taiwan in retaliation for US House Speaker Nancy Pelosi s visit to Taipei earlier this month Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians For a week after Pelosi s visit China sent warships missiles and fighter jets into the waters and skies around Taiwan its largest and most aggressive exercises since the mid 1990s Even before this month s drills Beijing had increased military pressure on Taiwan in recent years particularly with incursions into the island s air defence identification zone ADIZ Last year Taiwan recorded incursions by around 970 Chinese warplanes into its air defence zone according to a database compiled by AFP more than double the roughly 380 in 2020 The figure this year already exceeded 980 with more than 360 incursions being recorded in August alone The increased activity puts further stress on Taiwan s outgunned military resources especially its ageing fleet of fighter jets There have been significant increases in operation maintenance in response to the cross strait situation as our aircraft and naval ships have been increasingly deployed budgeting chief Chu Tzer ming told reporters Historically Taiwan s military has favoured big ticket purchases like fighter jets and warships But American and Taiwanese strategists have increasingly pushed Taipei to adopt a porcupine strategy of asymmetric warfare That strategy emphasises purchasing comparatively inexpensive and mobile weapon systems like anti ship and aircraft missiles as well as training soldiers and civilian reservists to fight behind enemy lines to make an invasion a grim prospect even for China s huge military
    Taiwan announces plans for record defence budget after China drills
    Foreign3 months ago

    Taiwan announces plans for record defence budget after China drills

    Taiwan announced plans for a record increase to its defence budget on Thursday after huge military drills by China earlier this month sent tensions between the two to their highest in decades.

    Taipei has proposed a defence budget of Tw$415.

    1 billion ($13.

    7 billion) for next year, up 13 percent year-on-year, pending parliamentary approval.

    An additional special budget will also be created specifically to acquire new fighter jets and other projects to boost naval and air capabilities, the top budgeting agency said in a statement.

    “To protect national security, the overall defence budget for next year will reach Tw$586.

    3 billion to a record high,” a cabinet spokesman quoted Premier Su Tseng-chang as saying.

    Taiwan lives under constant threat of invasion by China, which claims the democratic island as part of its territory to be seized one day — by force if necessary.

    Beijing’s sabre-rattling has grown more pronounced under President Xi Jinping, China’s most assertive leader in a generation.

    The bolstered military budget was unveiled after Beijing staged unprecedented exercises around Taiwan in retaliation for US House Speaker Nancy Pelosi’s visit to Taipei earlier this month.

    Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians.

    For a week after Pelosi’s visit, China sent warships, missiles and fighter jets into the waters and skies around Taiwan, its largest and most aggressive exercises since the mid-1990s.

    Even before this month’s drills, Beijing had increased military pressure on Taiwan in recent years, particularly with incursions into the island’s air defence identification zone (ADIZ).

    Last year, Taiwan recorded incursions by around 970 Chinese warplanes into its air defence zone, according to a database compiled by AFP, more than double the roughly 380 in 2020.

    The figure this year already exceeded 980, with more than 360 incursions being recorded in August alone.

    The increased activity puts further stress on Taiwan’s outgunned military resources, especially its ageing fleet of fighter jets.

    “There have been significant increases in operation maintenance in response to the cross-strait situation, as our aircraft and naval ships have been (increasingly) deployed,” budgeting chief Chu Tzer-ming told reporters.

    Historically, Taiwan’s military has favoured big-ticket purchases like fighter jets and warships.

    But American and Taiwanese strategists have increasingly pushed Taipei to adopt a “porcupine” strategy of asymmetric warfare.

    That strategy emphasises purchasing comparatively inexpensive and mobile weapon systems, like anti-ship and aircraft missiles, as well as training soldiers and civilian reservists to fight behind enemy lines to make an invasion a grim prospect even for China’s huge military.

  •  Taiwan proposed a budget of 17 3 billion dollars in defence for 2023 on Thursday a 14 9 per cent increase from this year s total allocation The proposal is coming weeks after China started its military drill around the self ruled island country post the visit of U S House Speaker Nancy Pelosi Taiwan proposed 19 billion dollars in defence spending for next year on Thursday a double digit increase on 2022 that includes funds for new fighter jets weeks after China staged large scale war games around the island it views as its sovereign territory In the proposed budget the figure includes NTD 108 3 for new advanced combat jets and programs for elevating sea and air combat capability And the total budget reached NTD 586 3 billion if another special fund is included Nikkei Asia reported The budget now goes for approval to the Legislative Yuan which begins a new session next month Currently Taiwan is grappling with increasing Chinese aggression with concerns growing over the island s ability to defend itself after Beijing conducted its biggest ever military drills surrounding its neighbour earlier this month The People s Liberation Army sent aircraft drones missiles and warships around Taiwan and its outlying islands after a visit by U S House Speaker Nancy Pelosi In January Taiwanese lawmakers passed an extra spending bill of around 8 6 billion dollars for a five year special defence budget on top of the annual defence budget reported Nikkei Asia This year Chinese defence spending has risen by 7 1 per cent to 1 45 trillion yuan faster than the 6 8 per cent increase in 2021 Over the weapons Lee Hsi min former chief of general staff of Taiwan s armed forces said that Taipei should prioritize weapons that are cost effective and more survivable Conventional weapons such as tanks submarines and aircraft have high opportunity costs If you spend your money on these big weapons you don t have resources for smaller ones Taiwan should acquire a lot of small mobile and inexpensive weapons which could outlast initial assaults by Beijing especially by Chinese long range missiles or fighter jets So Chinese forces have to attempt to get nearer to Taiwan which makes them more vulnerable Lee added Various obstacles stand in the way of reforms and military personnel dominate the Defense Ministry according to Nikkei Asia Citing Ukraine s success in staving off Russian invaders Lee said a standing all volunteer Taiwanese territorial defence force would raise the cost and uncertainty of a Chinese invasion and strengthen deterrence by demonstrating national resolve But others disagree Wong Ming Shien of the Graduate Institute of International Affairs and Strategic Studies cited insufficient funding the lack of training grounds and weaponry and the impact on the professional armed forces if they were tasked with training civilians YEE NewsSourceCredit NAN
    Taiwan proposes large rise in defence spending amid escalating China tensions
     Taiwan proposed a budget of 17 3 billion dollars in defence for 2023 on Thursday a 14 9 per cent increase from this year s total allocation The proposal is coming weeks after China started its military drill around the self ruled island country post the visit of U S House Speaker Nancy Pelosi Taiwan proposed 19 billion dollars in defence spending for next year on Thursday a double digit increase on 2022 that includes funds for new fighter jets weeks after China staged large scale war games around the island it views as its sovereign territory In the proposed budget the figure includes NTD 108 3 for new advanced combat jets and programs for elevating sea and air combat capability And the total budget reached NTD 586 3 billion if another special fund is included Nikkei Asia reported The budget now goes for approval to the Legislative Yuan which begins a new session next month Currently Taiwan is grappling with increasing Chinese aggression with concerns growing over the island s ability to defend itself after Beijing conducted its biggest ever military drills surrounding its neighbour earlier this month The People s Liberation Army sent aircraft drones missiles and warships around Taiwan and its outlying islands after a visit by U S House Speaker Nancy Pelosi In January Taiwanese lawmakers passed an extra spending bill of around 8 6 billion dollars for a five year special defence budget on top of the annual defence budget reported Nikkei Asia This year Chinese defence spending has risen by 7 1 per cent to 1 45 trillion yuan faster than the 6 8 per cent increase in 2021 Over the weapons Lee Hsi min former chief of general staff of Taiwan s armed forces said that Taipei should prioritize weapons that are cost effective and more survivable Conventional weapons such as tanks submarines and aircraft have high opportunity costs If you spend your money on these big weapons you don t have resources for smaller ones Taiwan should acquire a lot of small mobile and inexpensive weapons which could outlast initial assaults by Beijing especially by Chinese long range missiles or fighter jets So Chinese forces have to attempt to get nearer to Taiwan which makes them more vulnerable Lee added Various obstacles stand in the way of reforms and military personnel dominate the Defense Ministry according to Nikkei Asia Citing Ukraine s success in staving off Russian invaders Lee said a standing all volunteer Taiwanese territorial defence force would raise the cost and uncertainty of a Chinese invasion and strengthen deterrence by demonstrating national resolve But others disagree Wong Ming Shien of the Graduate Institute of International Affairs and Strategic Studies cited insufficient funding the lack of training grounds and weaponry and the impact on the professional armed forces if they were tasked with training civilians YEE NewsSourceCredit NAN
    Taiwan proposes large rise in defence spending amid escalating China tensions
    Foreign3 months ago

    Taiwan proposes large rise in defence spending amid escalating China tensions

    Taiwan proposed a budget of 17.3 billion dollars in defence for 2023 on Thursday, a 14.9 per cent increase from this year’s total allocation.

    The proposal is coming weeks after China started its military drill around the self-ruled island country post the visit of U.

    S. House Speaker Nancy Pelosi.

    Taiwan proposed 19 billion dollars in defence spending for next year on Thursday, a double-digit increase on 2022 that includes funds for new fighter jets, weeks after China staged large-scale war games around the island it views as its sovereign territory.

    In the proposed budget, the figure includes NTD 108.3 for new advanced combat jets and programs for elevating sea and air combat capability.

    And the total budget reached NTD 586.3 billion if another special fund is included, Nikkei Asia reported.

    The budget now goes for approval to the Legislative Yuan, which begins a new session next month.

    Currently, Taiwan is grappling with increasing Chinese aggression, with concerns growing over the island’s ability to defend itself after Beijing conducted its biggest-ever military drills surrounding its neighbour earlier this month.

    The People’s Liberation Army sent aircraft, drones, missiles and warships around Taiwan and its outlying islands after a visit by U.

    S. House Speaker Nancy Pelosi.

    In January, Taiwanese lawmakers passed an extra spending bill of around 8.6 billion dollars for a five-year special defence budget on top of the annual defence budget, reported Nikkei Asia. This year, Chinese defence spending has risen by 7.1 per cent to 1.45 trillion yuan, faster than the 6.8 per cent increase in 2021. Over the weapons, Lee Hsi-min, former chief of general staff of Taiwan’s armed forces said that Taipei should prioritize weapons that are cost-effective and more survivable.

    “Conventional weapons such as tanks, submarines and aircraft have high opportunity costs.

    If you spend your money on these big weapons, you don’t have resources for smaller ones.

    ” “Taiwan should acquire a lot of small, mobile and inexpensive weapons, which could outlast initial assaults by Beijing, especially by Chinese long-range missiles or fighter jets.

    So Chinese forces have to attempt to get nearer to Taiwan, which makes them more vulnerable,” Lee added.

    Various obstacles stand in the way of reforms, and military personnel dominate the Defense Ministry, according to Nikkei Asia. Citing Ukraine’s success in staving off Russian invaders, Lee said a standing, all-volunteer Taiwanese territorial defence force would raise the cost and uncertainty of a Chinese invasion, and strengthen deterrence by demonstrating national resolve.

    But others disagree.

    Wong Ming-Shien of the Graduate Institute of International Affairs and Strategic Studies cited insufficient funding, the lack of training grounds and weaponry, and the impact on the professional armed forces if they were tasked with training civilians.

    YEE(
    NewsSourceCredit: NAN

  •   President Tsai Ing wen said Tuesday that Taiwanese people remained resolved to defend the island following China s huge military drills Tensions in the Taiwan Strait have risen to their highest in years since Beijing staged unprecedented drills in retaliation for US House Speaker Nancy Pelosi s visit to Taipei earlier this month Tsai made the remarks when meeting a visiting delegation of US scholars on the 64th anniversary of a Chinese artillery attack known as the 823 bombardment That battle to protect our homeland showed the world that no threat of any kind could shake the Taiwanese people s resolve to defend their nation not in the past not now and not in the future Tsai said China s army fired 470 000 shells at Kinmen Islands and nearby islets in 1958 killing 618 people in an attack that lasted 44 days Taiwan lives under constant threat of an invasion by China which claims the self ruled democracy as part of its territory to be seized one day by force if necessary Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians For a week after Pelosi s visit it sent warships ballistic missiles and fighter jets into the waters and skies around Taiwan Taiwan has accused China of using the visit as an excuse to kickstart drills that could serve as rehearsal for an invasion
    Tsai
      President Tsai Ing wen said Tuesday that Taiwanese people remained resolved to defend the island following China s huge military drills Tensions in the Taiwan Strait have risen to their highest in years since Beijing staged unprecedented drills in retaliation for US House Speaker Nancy Pelosi s visit to Taipei earlier this month Tsai made the remarks when meeting a visiting delegation of US scholars on the 64th anniversary of a Chinese artillery attack known as the 823 bombardment That battle to protect our homeland showed the world that no threat of any kind could shake the Taiwanese people s resolve to defend their nation not in the past not now and not in the future Tsai said China s army fired 470 000 shells at Kinmen Islands and nearby islets in 1958 killing 618 people in an attack that lasted 44 days Taiwan lives under constant threat of an invasion by China which claims the self ruled democracy as part of its territory to be seized one day by force if necessary Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians For a week after Pelosi s visit it sent warships ballistic missiles and fighter jets into the waters and skies around Taiwan Taiwan has accused China of using the visit as an excuse to kickstart drills that could serve as rehearsal for an invasion
    Tsai
    Foreign3 months ago

    Tsai

    President Tsai Ing-wen said Tuesday that Taiwanese people remained resolved to defend the island following China’s huge military drills.

    Tensions in the Taiwan Strait have risen to their highest in years since Beijing staged unprecedented drills in retaliation for US House Speaker Nancy Pelosi’s visit to Taipei earlier this month.

    Tsai made the remarks when meeting a visiting delegation of US scholars on the 64th anniversary of a Chinese artillery attack known as the “823 bombardment”.

    “That battle to protect our homeland showed the world that no threat of any kind could shake the Taiwanese people’s resolve to defend their nation — not in the past, not now, and not in the future,” Tsai said.

    China’s army fired 470,000 shells at Kinmen Islands and nearby islets in 1958, killing 618 people in an attack that lasted 44 days.

    Taiwan lives under constant threat of an invasion by China, which claims the self-ruled democracy as part of its territory to be seized one day — by force if necessary.

    Beijing lashes out at any diplomatic action that might lend Taiwan legitimacy and has responded with growing anger to visits by Western officials and politicians.

    For a week after Pelosi’s visit, it sent warships, ballistic missiles and fighter jets into the waters and skies around Taiwan.

    Taiwan has accused China of using the visit as an excuse to kickstart drills that could serve as rehearsal for an invasion.

  •   Taiwan saw off China before retains resolve to defend itself President Taiwan Taiwan saw off China s military six decades ago when Chinese forces bombarded offshore Taiwanese islands and that resolve to defend the homeland continues to this day President Tsai Ing wen told a visiting group of former U S officials on Tuesday Tensions between Taiwan and China have spiked over the past month following the visit to Taipei by U S House Speaker Nancy Pelosi China staged war games near Taiwan to express its anger at what it saw as stepped up U S support for the island Beijing views as sovereign Chinese territory Meeting a delegation of former U S officials now at Stanford University s Hoover Institution Tsai referred to China s more than a month of attacks on the Taiwan controlled islands of Kinmen and Matsu just off the Chinese coast which started in August 1958 Sixty four years ago during the Aug 23 battle our soldiers and civilians operated in solidarity and safeguarded Taiwan so that we have the democratic Taiwan today she said using the common Taiwanese term for that campaign which ended in stalemate with China failing to take the islands That battle to protect our homeland showed the world that no threat of any kind could shake the Taiwanese people s resolve to defend their nation not in the past not now and not in the future Tsai said We too will show the world that the people of Taiwan have both the resolve and confidence to safeguard peace security freedom and prosperity for ourselves In 1958 Taiwan fought back with support from the United States which sent military equipment including advanced Sidewinder anti aircraft missiles giving Taiwan a technological edge Often called the Second Taiwan Strait Crisis it was the last time Taiwanese forces joined battle with China on a large scale James O Ellis now a visiting fellow at Hoover and a retired U S Navy admiral said his delegation s presence in Taiwan reaffirmed the American people s commitment to deepening cooperation Consistent with the Taiwan Relations Act part of this cooperation involves strengthening Taiwan s capabilities for self defence as well as the ability of the United States to deter and resist any resort to force across the Taiwan Strait Ellis told Tsai Ellis was referring to a U S law that requires it to provide Taiwan with the means to defend itself Matt Pottinger who served as former U S President Donald Trump s deputy national security adviser is also part of the delegation The United States which ditched formal diplomatic relations with Taipei in favour of Beijing in 1979 remains Taiwan s most important source of arms As Taiwan stands on the front line of authoritarian expansionism we continue to bolster our defence autonomy and we will also continue to work with the United States on this front Tsai said China s drills near Taiwan have posed a threat to the status quo in the strait and across the region and democratic partners should work together to defend against interference by authoritarian states she added Following that meeting Tsai met two Japanese lawmakers and other foreign parliamentarians are also expected to visit this year including from Canada and Britain defying Chinese pressure not to go Taiwan s government says that as the People s Republic of China has never governed the island it has no right to claim it or decide its future which can only be set by Taiwan s 23 million people YEE NewsSourceCredit NAN
    Taiwan saw off China before, retains resolve to defend itself – President
      Taiwan saw off China before retains resolve to defend itself President Taiwan Taiwan saw off China s military six decades ago when Chinese forces bombarded offshore Taiwanese islands and that resolve to defend the homeland continues to this day President Tsai Ing wen told a visiting group of former U S officials on Tuesday Tensions between Taiwan and China have spiked over the past month following the visit to Taipei by U S House Speaker Nancy Pelosi China staged war games near Taiwan to express its anger at what it saw as stepped up U S support for the island Beijing views as sovereign Chinese territory Meeting a delegation of former U S officials now at Stanford University s Hoover Institution Tsai referred to China s more than a month of attacks on the Taiwan controlled islands of Kinmen and Matsu just off the Chinese coast which started in August 1958 Sixty four years ago during the Aug 23 battle our soldiers and civilians operated in solidarity and safeguarded Taiwan so that we have the democratic Taiwan today she said using the common Taiwanese term for that campaign which ended in stalemate with China failing to take the islands That battle to protect our homeland showed the world that no threat of any kind could shake the Taiwanese people s resolve to defend their nation not in the past not now and not in the future Tsai said We too will show the world that the people of Taiwan have both the resolve and confidence to safeguard peace security freedom and prosperity for ourselves In 1958 Taiwan fought back with support from the United States which sent military equipment including advanced Sidewinder anti aircraft missiles giving Taiwan a technological edge Often called the Second Taiwan Strait Crisis it was the last time Taiwanese forces joined battle with China on a large scale James O Ellis now a visiting fellow at Hoover and a retired U S Navy admiral said his delegation s presence in Taiwan reaffirmed the American people s commitment to deepening cooperation Consistent with the Taiwan Relations Act part of this cooperation involves strengthening Taiwan s capabilities for self defence as well as the ability of the United States to deter and resist any resort to force across the Taiwan Strait Ellis told Tsai Ellis was referring to a U S law that requires it to provide Taiwan with the means to defend itself Matt Pottinger who served as former U S President Donald Trump s deputy national security adviser is also part of the delegation The United States which ditched formal diplomatic relations with Taipei in favour of Beijing in 1979 remains Taiwan s most important source of arms As Taiwan stands on the front line of authoritarian expansionism we continue to bolster our defence autonomy and we will also continue to work with the United States on this front Tsai said China s drills near Taiwan have posed a threat to the status quo in the strait and across the region and democratic partners should work together to defend against interference by authoritarian states she added Following that meeting Tsai met two Japanese lawmakers and other foreign parliamentarians are also expected to visit this year including from Canada and Britain defying Chinese pressure not to go Taiwan s government says that as the People s Republic of China has never governed the island it has no right to claim it or decide its future which can only be set by Taiwan s 23 million people YEE NewsSourceCredit NAN
    Taiwan saw off China before, retains resolve to defend itself – President
    Foreign3 months ago

    Taiwan saw off China before, retains resolve to defend itself – President

    Taiwan saw off China before, retains resolve to defend itself – President Taiwan Taiwan saw off China’s military six decades ago when Chinese forces bombarded offshore Taiwanese islands and that resolve to defend the homeland continues to this day, President Tsai Ing-wen told a visiting group of former U.

    S. officials on Tuesday.

    Tensions between Taiwan and China have spiked over the past month following the visit to Taipei by U.

    S. House Speaker Nancy Pelosi.

    China staged war games near Taiwan to express its anger at what it saw as stepped up U.

    S. support for the island Beijing views as sovereign Chinese territory.

    Meeting a delegation of former U.

    S. officials now at Stanford University’s Hoover Institution, Tsai referred to China’s more than a month of attacks on the Taiwan-controlled islands of Kinmen and Matsu, just off the Chinese coast, which started in August 1958. “Sixty-four years ago during the Aug. 23 battle, our soldiers and civilians operated in solidarity and safeguarded Taiwan, so that we have the democratic Taiwan today,” she said, using the common Taiwanese term for that campaign, which ended in stalemate with China failing to take the islands.

    “That battle to protect our homeland showed the world that no threat of any kind could shake the Taiwanese people’s resolve to defend their nation, not in the past, not now, and not in the future,” Tsai said.

    “We too will show the world that the people of Taiwan have both the resolve and confidence to safeguard peace, security, freedom and prosperity for ourselves.

    ” In 1958, Taiwan fought back with support from the United States, which sent military equipment including advanced Sidewinder anti-aircraft missiles, giving Taiwan a technological edge.

    Often called the Second Taiwan Strait Crisis, it was the last time Taiwanese forces joined battle with China on a large scale.

    James O.

    Ellis, now a visiting fellow at Hoover and a retired U.

    S. Navy admiral, said his delegation’s presence in Taiwan reaffirmed the American people’s commitment to deepening cooperation.

    “Consistent with the Taiwan Relations Act, part of this cooperation involves strengthening Taiwan’s capabilities for self defence as well as the ability of the United States to deter and resist any resort to force across the Taiwan Strait,” Ellis told Tsai. Ellis was referring to a U.

    S. law that requires it to provide Taiwan with the means to defend itself.

    Matt Pottinger, who served as former U.

    S. President Donald Trump’s deputy national security adviser, is also part of the delegation.

    The United States, which ditched formal diplomatic relations with Taipei in favour of Beijing in 1979, remains Taiwan’s most important source of arms.

    “As Taiwan stands on the front line of authoritarian expansionism we continue to bolster our defence autonomy, and we will also continue to work with the United States on this front,” Tsai said.

    China’s drills near Taiwan have posed a threat to the status quo in the strait and across the region, and democratic partners should work together to “defend against interference by authoritarian states”, she added.

    Following that meeting, Tsai met two Japanese lawmakers, and other foreign parliamentarians are also expected to visit this year, including from Canada and Britain, defying Chinese pressure not to go.

    Taiwan’s government says that as the People’s Republic of China has never governed the island it has no right to claim it or decide its future, which can only be set by Taiwan’s 23 million people.

    YEE(
    NewsSourceCredit: NAN

  •   Taiwan president warns of heavy price to pay for an invasion Taiwan president warns of heavy price to pay for an invasion FILE PHOTO A heavy price would be paid for invading or trying to invade Taiwan and it would be condemned by the international community President Tsai Ing wen said on Tuesday What we have to do is to let the enemy understand that Taiwan has the determination and preparation to defend the country as well as the ability to defend itself Tsai told military officers in comments released by her office A heavy price will be paid for invading Taiwan or attempting to invade Taiwan and it will be strongly condemned by the international community YEE NewsSourceCredit NAN
    Taiwan president warns of heavy price to pay for an invasion
      Taiwan president warns of heavy price to pay for an invasion Taiwan president warns of heavy price to pay for an invasion FILE PHOTO A heavy price would be paid for invading or trying to invade Taiwan and it would be condemned by the international community President Tsai Ing wen said on Tuesday What we have to do is to let the enemy understand that Taiwan has the determination and preparation to defend the country as well as the ability to defend itself Tsai told military officers in comments released by her office A heavy price will be paid for invading Taiwan or attempting to invade Taiwan and it will be strongly condemned by the international community YEE NewsSourceCredit NAN
    Taiwan president warns of heavy price to pay for an invasion
    Foreign3 months ago

    Taiwan president warns of heavy price to pay for an invasion

    Taiwan president warns of heavy price to pay for an invasion Taiwan president warns of heavy price to pay for an invasionFILE PHOTO –A heavy price would be paid for invading or trying to invade Taiwan and it would be condemned by the international community, President Tsai Ing-wen said on Tuesday.

    “What we have to do is to let the enemy understand that Taiwan has the determination and preparation to defend the country, as well as the ability to defend itself,” Tsai told military officers, in comments released by her office.

    “A heavy price will be paid for invading Taiwan or attempting to invade Taiwan, and it will be strongly condemned by the international community.

    ” YEE(
    NewsSourceCredit: NAN

  •  Taiwan s President Tsai Ing wen on Monday received another delegation from the United States amid rising tensions with China Eric Holcomb governor of the U S state of Indiana arrived in Taipei on Sunday for a four day trip His visit came after recent trips by high ranking Democrats Nancy Pelosi and Ed Markey that drew ire from Beijing which rejects official contacts between Taipei and other countries Beijing started large scale military manoeuvres around Taiwan in response to Pelosi s visit Tsai stressed in a presidential office meeting with Holcomb that the U S and Taiwan were key security and economic allies in the Indo Pacific region Taiwan has been confronted by military threats from China in and around the Taiwan Strait At this moment democratic allies must stand together and boost cooperation across all areas he said Holcomb signed a memorandum of understanding with Taiwan s Ministry of Economic Affairs to facilitate bilateral business trade and scientific cooperation Holcomb said Indiana would continue to seek strategic partnerships with Taiwan The governor expressed his excitement about the prospect of future collaborations with Taiwan According to the foreign affairs ministry Holcomb will meet with other senior government officials and representatives from the semiconductor sector Taiwan has had an independent government since 1949 but China considers the island part of its territory NewsSourceCredit NAN
    Taiwan receives another U.S. delegation amid China tensions
     Taiwan s President Tsai Ing wen on Monday received another delegation from the United States amid rising tensions with China Eric Holcomb governor of the U S state of Indiana arrived in Taipei on Sunday for a four day trip His visit came after recent trips by high ranking Democrats Nancy Pelosi and Ed Markey that drew ire from Beijing which rejects official contacts between Taipei and other countries Beijing started large scale military manoeuvres around Taiwan in response to Pelosi s visit Tsai stressed in a presidential office meeting with Holcomb that the U S and Taiwan were key security and economic allies in the Indo Pacific region Taiwan has been confronted by military threats from China in and around the Taiwan Strait At this moment democratic allies must stand together and boost cooperation across all areas he said Holcomb signed a memorandum of understanding with Taiwan s Ministry of Economic Affairs to facilitate bilateral business trade and scientific cooperation Holcomb said Indiana would continue to seek strategic partnerships with Taiwan The governor expressed his excitement about the prospect of future collaborations with Taiwan According to the foreign affairs ministry Holcomb will meet with other senior government officials and representatives from the semiconductor sector Taiwan has had an independent government since 1949 but China considers the island part of its territory NewsSourceCredit NAN
    Taiwan receives another U.S. delegation amid China tensions
    Foreign3 months ago

    Taiwan receives another U.S. delegation amid China tensions

    Taiwan’s President Tsai Ing-wen on Monday received another delegation from the United States amid rising tensions with China.

    Eric Holcomb, governor of the U.

    S. state of Indiana, arrived in Taipei on Sunday for a four-day trip.

    His visit came after recent trips by high-ranking Democrats, Nancy Pelosi and Ed Markey that drew ire from Beijing, which rejects official contacts between Taipei and other countries.

    Beijing started large-scale military manoeuvres around Taiwan in response to Pelosi’s visit.

    Tsai stressed in a presidential office meeting with Holcomb that the U.

    S. and Taiwan were key security and economic allies in the Indo-Pacific region.

    “Taiwan has been confronted by military threats from China, in and around the Taiwan Strait.

    “At this moment, democratic allies must stand together and boost cooperation across all areas,” he said.

    Holcomb signed a memorandum of understanding with Taiwan’s Ministry of Economic Affairs to facilitate bilateral business, trade and scientific cooperation.

    Holcomb said Indiana would continue to seek strategic partnerships with Taiwan.

    The governor expressed his excitement about the prospect of future collaborations with Taiwan.

    According to the foreign affairs ministry, Holcomb will meet with other senior government officials and representatives from the semiconductor sector.

    Taiwan has had an independent government since 1949, but China considers the island part of its territory.


    NewsSourceCredit: NAN

  •   War Has Created Scarcity In Various Domains Akinterinwa Nigeria Cannot Be An Exception In Terms Of Impact Only Effective Leadership Can Save Situation Says Akinyemi As countries including Nigeria continue to record rising inflationary rates occasioned by the Russian Ukrainian war foreign affairs experts in Nigeria have predicted that citizens would experience more hardships in the months ahead unless the warring countries reach a lasting truce A former Minister of Foreign Affairs and Professor of Political Science Bolaji Akinyemi and a former Director General of Nigeria Institute of International Affairs NIIA Prof Bola Akinterinwa who spoke in separate interviews with The Guardian therefore urged Nigerians to brace up for the challenges ahead They however blamed the Federal Government for its failure to prepare for uncertainties like the Russia Ukraine war which has strained its economy and pushed more households into poverty following the rising cost of living Figures released by the National Bureau of Statistics NBS last Tuesday showed that Nigeria s inflation rate has defied monetary tightening hitting 19 64 per cent in July a level not seen in over a one and a half decade However the trend is not peculiar to Nigeria as the annual inflation rate of its West African neighbour Ghana accelerated for the 14th straight month to 31 7 per cent in July from 29 8 per cent in June Overseas a country like the United Kingdom recorded a 10 1 per cent inflation rate in July the first time it has registered a double digit increase in 40 years In June the annual inflation rate in the United States hit a 40 year high of 9 1 per cent but slowed more than expected to 8 5 per cent in July Speaking on the trend Akinyemi stated that the economy of the world has become global hence the situation in Nigeria and elsewhere His words No country is an island of itself we are not the only country who imports wheat from Ukraine about 40 countries do Then the high price of oil both crude and refined affects practically all the countries in the world Don t forget that we are just getting out of the negative consequences of COVID 19 and Omicron when this war came slamming into the world economy The price of cooking and industrial gas in Europe had gone up which affects goods produced That alone shoots up the prices of goods all over the world especially countries that depend on importation of crude and refined oil He added that Nigerians should expect their sufferings to continue but noted that saying so does not mean there would not be palliatives He noted No matter the relationships between what is happening in the rest of the world with what is happening in our own country it must be emphasised that there is no substitute for effective leadership that can manage the crisis of the world economy Effective leadership can cushion the negative effect of the world economy and an effective leadership style can actually take advantage of the negative aspect of the world economy As an illustration the news that came out of Saudi Arabia last week was that the profits of the Saudi Arabia crude export had gone up considerably that Saudi oil export had taken advantage of the negative aspect of the world trade in crude oil This is an example of effective crude management While some are bemoaning Russia s oil not coming into the market others have actually used that advantage to increase their profit margin In a case like Nigeria s where there is stealing half a million barrels of crude oil there is no way it can take advantage of the scarcity or high oil price when it cannot meet the quota that OPEC ascribed to it So it is against that backdrop that I would say the Nigerian economy is not immune from the negative aspect of the Russian Ukrainian war It is not even the war directly because the ban on Russian export of oil should not affect a country like Nigeria if anything the prices that shut up in the oil market should have been of advantage to us But as I said earlier since half a million of our barrel of crude is being stolen we cannot take advantage of that On the contrary since we import all our refined products from abroad the prices of that refined products will be a function of the increase in crude oil In fact instead of benefiting we are now suffering from the shortage of crude and consequently the high increase in importation The second area is in food supplies the very obvious one is the high cost of flour and consequently the high cost of bread Until the United Nations successful agreement between Russia and Ukraine to restart the export of Ukrainian wheat to bring the flour into the world again we have become victims of a shortage of wheat and flour Consequently the price of bread has shut up and there has been a shortage of bread leading to high prices and inflation in the food sector in the country Even though the UN has arranged a new agreement to ease this shortage it would take time for a sufficient quantity of wheat and flour to get into the world market and bring down the price of flour He noted that as more of the wheat from Ukraine gets into the world market the inflation index in the food sector would probably come down a bit But again we are an importing country We import almost everything therefore we are not going to be immune from what is happening in the world market whereas those who make their wealth from importing will have an economic backward integration if you are importing flours invest in wheat production If you are importing tomatoes invest in tomato farmlands and factories that will can these tomatoes In other words take measures that will make our economy less dependent on importation that will be the long term way of preparing Nigeria for the next war that will break out somewhere else hopefully not on our own territory but wars are going to be breaking out We could see it between China and Taiwan which was almost a global war So we really should be thinking far ahead how to insulate our economy from aggressions or wars around the world Akinyemi urged the Federal Government to stop oil theft as part of efforts that must be geared towards strengthening the economy in the face of the current challenge He stressed A tanker that could carry three million barrels that left Nigeria has just been seized in Equatorial Guinea and that was a tanker involved in smuggling If you cannot depend on Nigeria s security forces seek help from those that have the capability For example it is in the interest of Americans for Nigeria to meet its export of crude quota because if we can get that half a million that is being smuggled out of Nigeria legally into the market it increases the availability of crude which the Americans are interested in That is why President Biden went to Saudi Arabia to secure the supply of more crude into the world market This will be in America s interest and in our own interest too because we will earn more money so we don t continue to borrow money even though we can t even borrow because of our inability to pay our debts We have been on the issue of sanitising the activities in the oil sector and I will say this I don t believe in destroying illegal refineries it is not the solution These people are providing a service if the standard of the refined oil they are producing is bad they will not get customers patronising them What the government should do is to bring them they have local refineries that are working while our four refineries are not working So we should bring these people into the economy help them through technical assistance to better refine the crude and get them to pay for the crude you supply to them then they won t be breaking the oil pipes polluting the environment I grew up at a time when goods coming in from China and Taiwan were so inferior we used to laugh at them but their government did not go and close down those factories but helped to modernise those factories Today nobody is laughing at Japanese or Chinese goods So why do we send in troops to break down those refineries and the next day they go back to them instead of our troops to fighting terrorists On his part Akinterinwa explained that rising inflation in Nigeria and elsewhere have much to do with the Russia Ukrainian war in several ways His words First when an event takes place in any given place there is always the domino effect no matter how minute When a statement is made by an important public figure in a country it is internationally reported People in other countries can listen to the statement in the comfort of their homes Based on that statement new opinions are formed there can be agreement or disagreement with and even condemnation This is a permissible interference If the statement is about a government s intention to raise taxes or about nationalise some businesses international stakeholders cannot but be so concerned The issue of the rising inflation is not different because it is not limited by territorial boundaries Goods are manufactured in one country the buyers are in another country The instruments of payment are administered elsewhere This is a message that the Russo Ukrainian war has communicated to the world messages of disruption in the domestic and global order with all their attendant implications in Ukraine disruption of demand and supply in EU countries disruption of import and export disruption in international communications disruption in social services in other countries of the world etc The domino effects can largely explain the inflationary trend you raised He pointed to the economic sanctions taken against Russia by the European Union EU and the United States as part of the causes of the current disruptions in the global economy He added The sanctions cannot but generate inflation Russia supplies a lot of gas to the EU Russia was compelled to introduce the use of its own national currency as international money as a result of the sanctions The BRICS Brazil Russia India China and South Africa is also preparing to introduce a new convertible currency as an alternative to the pound sterling and the US dollar All these measures go beyond micro and macro economic considerations In fact aviation costs as well as wheat and other cereals that Ukraine normally exports to the world including to Africa have been adversely affected True enough the war has created scarcity in various domains The scarcity generates inflation and inflation is spreading worldwide because the international community lives interdependently and based on demand and supply When there is scarcity inflation follows Nigeria cannot be an exception in terms of impact especially because as I have said the war creates different problems ranging from politico diplomatic to economic cultural and military for other members of the international community On why Nigeria seems to be heavily impacted by the war Akinterinwa noted First Nigeria maintains diplomatic ties with both Ukraine and Russia and the relationships are both warm Nigeria s diplomacy should under normal circumstances be to avoid being the friend of one and enemy of the other But because of the misapplication of Nigeria s policy of non alignment and particularly by carelessly aligning with Ukraine by asking Russia to withdraw its troops from Ukraine it is now on record that Nigeria has taken a side which is apparently not in Nigeria s national interest Nigeria has become the enemy of Russia and the friend of Ukraine The friendship with Ukraine is not really a big deal when compared to the implications for Nigeria s industrial development for which Russia stands on a higher pedestal than Ukraine While it is true that thousands of Nigerians are studying in Ukraine and other thousands are doing the same in Russia Nigeria s ties with Russia are more notable because of the Ajaokuta Steel project The former Soviet Union took the side of Nigeria during her civil war Based on the Russo Nigerian agreement of 2019 by which Russia agreed to help complete the Ajaokuta project and in light of the pledges made at the Russia African Summit held in Sochi Russia in 2019 to bring development assistance to African countries there is no way Nigeria will not be heavily impacted upon by the war especially in terms of future punitive measures from the side of Russia He also concurred that with the end of the conflict nowhere in sight Nigerians should expect the worst scenarios going forward His words When a conflict persists without any quick end in sight the worst scenarios must be expected First further hardship in lifestyle must be expected Increasing loss of lives rising inflation and deepening animosity not only vis vis the invader but also towards the Ukrainian leader who paved the way for the war War weariness cannot but become a fresh factor Costs of prosecuting the war will not only increase but will not be available for any development purposes In other words it can be argued that security takes priority and that no development can take place in an environment of inclemency Coups d tat cannot be ruled out as well as animosity towards those aiding and abetting the prolongation of the war
    More hardship coming, experts alert Nigerians
      War Has Created Scarcity In Various Domains Akinterinwa Nigeria Cannot Be An Exception In Terms Of Impact Only Effective Leadership Can Save Situation Says Akinyemi As countries including Nigeria continue to record rising inflationary rates occasioned by the Russian Ukrainian war foreign affairs experts in Nigeria have predicted that citizens would experience more hardships in the months ahead unless the warring countries reach a lasting truce A former Minister of Foreign Affairs and Professor of Political Science Bolaji Akinyemi and a former Director General of Nigeria Institute of International Affairs NIIA Prof Bola Akinterinwa who spoke in separate interviews with The Guardian therefore urged Nigerians to brace up for the challenges ahead They however blamed the Federal Government for its failure to prepare for uncertainties like the Russia Ukraine war which has strained its economy and pushed more households into poverty following the rising cost of living Figures released by the National Bureau of Statistics NBS last Tuesday showed that Nigeria s inflation rate has defied monetary tightening hitting 19 64 per cent in July a level not seen in over a one and a half decade However the trend is not peculiar to Nigeria as the annual inflation rate of its West African neighbour Ghana accelerated for the 14th straight month to 31 7 per cent in July from 29 8 per cent in June Overseas a country like the United Kingdom recorded a 10 1 per cent inflation rate in July the first time it has registered a double digit increase in 40 years In June the annual inflation rate in the United States hit a 40 year high of 9 1 per cent but slowed more than expected to 8 5 per cent in July Speaking on the trend Akinyemi stated that the economy of the world has become global hence the situation in Nigeria and elsewhere His words No country is an island of itself we are not the only country who imports wheat from Ukraine about 40 countries do Then the high price of oil both crude and refined affects practically all the countries in the world Don t forget that we are just getting out of the negative consequences of COVID 19 and Omicron when this war came slamming into the world economy The price of cooking and industrial gas in Europe had gone up which affects goods produced That alone shoots up the prices of goods all over the world especially countries that depend on importation of crude and refined oil He added that Nigerians should expect their sufferings to continue but noted that saying so does not mean there would not be palliatives He noted No matter the relationships between what is happening in the rest of the world with what is happening in our own country it must be emphasised that there is no substitute for effective leadership that can manage the crisis of the world economy Effective leadership can cushion the negative effect of the world economy and an effective leadership style can actually take advantage of the negative aspect of the world economy As an illustration the news that came out of Saudi Arabia last week was that the profits of the Saudi Arabia crude export had gone up considerably that Saudi oil export had taken advantage of the negative aspect of the world trade in crude oil This is an example of effective crude management While some are bemoaning Russia s oil not coming into the market others have actually used that advantage to increase their profit margin In a case like Nigeria s where there is stealing half a million barrels of crude oil there is no way it can take advantage of the scarcity or high oil price when it cannot meet the quota that OPEC ascribed to it So it is against that backdrop that I would say the Nigerian economy is not immune from the negative aspect of the Russian Ukrainian war It is not even the war directly because the ban on Russian export of oil should not affect a country like Nigeria if anything the prices that shut up in the oil market should have been of advantage to us But as I said earlier since half a million of our barrel of crude is being stolen we cannot take advantage of that On the contrary since we import all our refined products from abroad the prices of that refined products will be a function of the increase in crude oil In fact instead of benefiting we are now suffering from the shortage of crude and consequently the high increase in importation The second area is in food supplies the very obvious one is the high cost of flour and consequently the high cost of bread Until the United Nations successful agreement between Russia and Ukraine to restart the export of Ukrainian wheat to bring the flour into the world again we have become victims of a shortage of wheat and flour Consequently the price of bread has shut up and there has been a shortage of bread leading to high prices and inflation in the food sector in the country Even though the UN has arranged a new agreement to ease this shortage it would take time for a sufficient quantity of wheat and flour to get into the world market and bring down the price of flour He noted that as more of the wheat from Ukraine gets into the world market the inflation index in the food sector would probably come down a bit But again we are an importing country We import almost everything therefore we are not going to be immune from what is happening in the world market whereas those who make their wealth from importing will have an economic backward integration if you are importing flours invest in wheat production If you are importing tomatoes invest in tomato farmlands and factories that will can these tomatoes In other words take measures that will make our economy less dependent on importation that will be the long term way of preparing Nigeria for the next war that will break out somewhere else hopefully not on our own territory but wars are going to be breaking out We could see it between China and Taiwan which was almost a global war So we really should be thinking far ahead how to insulate our economy from aggressions or wars around the world Akinyemi urged the Federal Government to stop oil theft as part of efforts that must be geared towards strengthening the economy in the face of the current challenge He stressed A tanker that could carry three million barrels that left Nigeria has just been seized in Equatorial Guinea and that was a tanker involved in smuggling If you cannot depend on Nigeria s security forces seek help from those that have the capability For example it is in the interest of Americans for Nigeria to meet its export of crude quota because if we can get that half a million that is being smuggled out of Nigeria legally into the market it increases the availability of crude which the Americans are interested in That is why President Biden went to Saudi Arabia to secure the supply of more crude into the world market This will be in America s interest and in our own interest too because we will earn more money so we don t continue to borrow money even though we can t even borrow because of our inability to pay our debts We have been on the issue of sanitising the activities in the oil sector and I will say this I don t believe in destroying illegal refineries it is not the solution These people are providing a service if the standard of the refined oil they are producing is bad they will not get customers patronising them What the government should do is to bring them they have local refineries that are working while our four refineries are not working So we should bring these people into the economy help them through technical assistance to better refine the crude and get them to pay for the crude you supply to them then they won t be breaking the oil pipes polluting the environment I grew up at a time when goods coming in from China and Taiwan were so inferior we used to laugh at them but their government did not go and close down those factories but helped to modernise those factories Today nobody is laughing at Japanese or Chinese goods So why do we send in troops to break down those refineries and the next day they go back to them instead of our troops to fighting terrorists On his part Akinterinwa explained that rising inflation in Nigeria and elsewhere have much to do with the Russia Ukrainian war in several ways His words First when an event takes place in any given place there is always the domino effect no matter how minute When a statement is made by an important public figure in a country it is internationally reported People in other countries can listen to the statement in the comfort of their homes Based on that statement new opinions are formed there can be agreement or disagreement with and even condemnation This is a permissible interference If the statement is about a government s intention to raise taxes or about nationalise some businesses international stakeholders cannot but be so concerned The issue of the rising inflation is not different because it is not limited by territorial boundaries Goods are manufactured in one country the buyers are in another country The instruments of payment are administered elsewhere This is a message that the Russo Ukrainian war has communicated to the world messages of disruption in the domestic and global order with all their attendant implications in Ukraine disruption of demand and supply in EU countries disruption of import and export disruption in international communications disruption in social services in other countries of the world etc The domino effects can largely explain the inflationary trend you raised He pointed to the economic sanctions taken against Russia by the European Union EU and the United States as part of the causes of the current disruptions in the global economy He added The sanctions cannot but generate inflation Russia supplies a lot of gas to the EU Russia was compelled to introduce the use of its own national currency as international money as a result of the sanctions The BRICS Brazil Russia India China and South Africa is also preparing to introduce a new convertible currency as an alternative to the pound sterling and the US dollar All these measures go beyond micro and macro economic considerations In fact aviation costs as well as wheat and other cereals that Ukraine normally exports to the world including to Africa have been adversely affected True enough the war has created scarcity in various domains The scarcity generates inflation and inflation is spreading worldwide because the international community lives interdependently and based on demand and supply When there is scarcity inflation follows Nigeria cannot be an exception in terms of impact especially because as I have said the war creates different problems ranging from politico diplomatic to economic cultural and military for other members of the international community On why Nigeria seems to be heavily impacted by the war Akinterinwa noted First Nigeria maintains diplomatic ties with both Ukraine and Russia and the relationships are both warm Nigeria s diplomacy should under normal circumstances be to avoid being the friend of one and enemy of the other But because of the misapplication of Nigeria s policy of non alignment and particularly by carelessly aligning with Ukraine by asking Russia to withdraw its troops from Ukraine it is now on record that Nigeria has taken a side which is apparently not in Nigeria s national interest Nigeria has become the enemy of Russia and the friend of Ukraine The friendship with Ukraine is not really a big deal when compared to the implications for Nigeria s industrial development for which Russia stands on a higher pedestal than Ukraine While it is true that thousands of Nigerians are studying in Ukraine and other thousands are doing the same in Russia Nigeria s ties with Russia are more notable because of the Ajaokuta Steel project The former Soviet Union took the side of Nigeria during her civil war Based on the Russo Nigerian agreement of 2019 by which Russia agreed to help complete the Ajaokuta project and in light of the pledges made at the Russia African Summit held in Sochi Russia in 2019 to bring development assistance to African countries there is no way Nigeria will not be heavily impacted upon by the war especially in terms of future punitive measures from the side of Russia He also concurred that with the end of the conflict nowhere in sight Nigerians should expect the worst scenarios going forward His words When a conflict persists without any quick end in sight the worst scenarios must be expected First further hardship in lifestyle must be expected Increasing loss of lives rising inflation and deepening animosity not only vis vis the invader but also towards the Ukrainian leader who paved the way for the war War weariness cannot but become a fresh factor Costs of prosecuting the war will not only increase but will not be available for any development purposes In other words it can be argued that security takes priority and that no development can take place in an environment of inclemency Coups d tat cannot be ruled out as well as animosity towards those aiding and abetting the prolongation of the war
    More hardship coming, experts alert Nigerians
    Foreign3 months ago

    More hardship coming, experts alert Nigerians

    • War Has Created Scarcity In Various Domains — Akinterinwa• ‘Nigeria Cannot Be An Exception In Terms Of Impact’• Only Effective Leadership Can Save Situation, Says Akinyemi As countries, including Nigeria, continue to record rising inflationary rates occasioned by the Russian-Ukrainian war, foreign affairs experts in Nigeria have predicted that citizens would experience more hardships in the months ahead unless the warring countries reach a lasting truce.

    A former Minister of Foreign Affairs and Professor of Political Science, Bolaji Akinyemi and a former Director-General of Nigeria Institute of International Affairs (NIIA), Prof. Bola Akinterinwa, who spoke in separate interviews with The Guardian, therefore urged Nigerians to brace up for the challenges ahead.

    They, however, blamed the Federal Government for its failure to prepare for uncertainties like the Russia-Ukraine war, which has strained its economy and pushed more households into poverty following the rising cost of living.

    Figures released by the National Bureau of Statistics (NBS) last Tuesday showed that Nigeria’s inflation rate has defied monetary tightening, hitting 19.

    64 per cent in July, a level not seen in over a one-and-a-half decade.

    However, the trend is not peculiar to Nigeria as the annual inflation rate of its West African neighbour, Ghana, accelerated for the 14th straight month to 31.

    7 per cent in July from 29.

    8 per cent in June.Overseas, a country like the United Kingdom recorded a 10.

    1 per cent inflation rate in July, the first time it has registered a double-digit increase in 40 years.

    In June, the annual inflation rate in the United States hit a 40-year high of 9.

    1 per cent but slowed more than expected to 8.

    5 per cent in July. Speaking on the trend, Akinyemi stated that the economy of the world has become global, hence the situation in Nigeria and elsewhere.

    His words: “No country is an island of itself; we are not the only country who imports wheat from Ukraine; about 40 countries do.

    Then, the high price of oil, both crude and refined, affects practically all the countries in the world.

    Don’t forget that we are just getting out of the negative consequences of COVID-19 and Omicron when this war came slamming into the world economy.

    The price of cooking and industrial gas in Europe had gone up, which affects goods produced.

    That alone shoots up the prices of goods all over the world, especially countries that depend on importation of crude and refined oil.

    ” He added that Nigerians should expect their sufferings to continue, but noted that saying so does not mean there would not be palliatives.

    He noted: “No matter the relationships between what is happening in the rest of the world with what is happening in our own country, it must be emphasised that there is no substitute for effective leadership that can manage the crisis of the world economy.

    Effective leadership can cushion the negative effect of the world economy and an effective leadership style can actually take advantage of the negative aspect of the world economy.

    “As an illustration, the news that came out of Saudi Arabia last week was that the profits of the Saudi Arabia crude export had gone up considerably; that Saudi oil export had taken advantage of the negative aspect of the world trade in crude oil.

    This is an example of effective crude management.

    While some are bemoaning Russia’s oil not coming into the market, others have actually used that advantage to increase their profit margin.

    In a case like Nigeria’s where there is stealing half a million barrels of crude oil, there is no way it can take advantage of the scarcity or high oil price when it cannot meet the quota that OPEC ascribed to it.

    So, it is against that backdrop that I would say the Nigerian economy is not immune from the negative aspect of the Russian-Ukrainian war.

    “It is not even the war directly because the ban on Russian export of oil should not affect a country like Nigeria; if anything, the prices that shut up in the oil market should have been of advantage to us.

    But as I said earlier, since half a million of our barrel of crude is being stolen, we cannot take advantage of that.

    On the contrary, since we import all our refined products from abroad, the prices of that refined products will be a function of the increase in crude oil.

    In fact, instead of benefiting, we are now suffering from the shortage of crude and consequently the high increase in importation.

    “The second area is in food supplies; the very obvious one is the high cost of flour and consequently the high cost of bread.

    Until the United Nations’ successful agreement between Russia and Ukraine to restart the export of Ukrainian wheat to bring the flour into the world, again we have become victims of a shortage of wheat and flour.

    Consequently, the price of bread has shut up and there has been a shortage of bread leading to high prices and inflation in the food sector in the country.

    Even though the UN has arranged a new agreement to ease this shortage, it would take time for a sufficient quantity of wheat and flour to get into the world market and bring down the price of flour.

    ” He noted that as more of the wheat from Ukraine gets into the world market, the inflation index in the food sector would probably come down a bit.

    “But again, we are an importing country.

    We import almost everything; therefore we are not going to be immune from what is happening in the world market, whereas those who make their wealth from importing will have an economic backward integration; if you are importing flours, invest in wheat production.

    “If you are importing tomatoes, invest in tomato farmlands and factories that will can these tomatoes.

    In other words, take measures that will make our economy less dependent on importation, that will be the long-term way of preparing Nigeria for the next war that will break out somewhere else, hopefully not on our own territory, but wars are going to be breaking out.

    ” “We could see it between China and Taiwan, which was almost a global war.

    So, we really should be thinking far ahead how to insulate our economy from aggressions or wars around the world.

    ” Akinyemi urged the Federal Government to stop oil theft as part of efforts that must be geared towards strengthening the economy in the face of the current challenge.

    He stressed: “A tanker that could carry three million barrels that left Nigeria has just been seized in Equatorial Guinea and that was a tanker involved in smuggling.

    If you cannot depend on Nigeria’s security forces, seek help from those that have the capability.

    For example, it is in the interest of Americans for Nigeria to meet its export of crude quota, because if we can get that half a million that is being smuggled out of Nigeria legally into the market, it increases the availability of crude, which the Americans are interested in.

    That is why President Biden went to Saudi Arabia to secure the supply of more crude into the world market.

    This will be in America’s interest and in our own interest too because we will earn more money so we don’t continue to borrow money, even though we can’t even borrow because of our inability to pay our debts.

    “We have been on the issue of sanitising the activities in the oil sector and I will say this – I don’t believe in destroying illegal refineries; it is not the solution.

    These people are providing a service; if the standard of the refined oil they are producing is bad, they will not get customers patronising them.

    What the government should do is to bring them; they have local refineries that are working, while our four refineries are not working.

    “So, we should bring these people into the economy, help them through technical assistance to better refine the crude and get them to pay for the crude you supply to them, then they won’t be breaking the oil pipes polluting the environment.

    “I grew up at a time when goods coming in from China and Taiwan were so inferior; we used to laugh at them, but their government did not go and close down those factories but helped to modernise those factories.

    Today, nobody is laughing at Japanese or Chinese goods.

    So, why do we send in troops to break down those refineries and the next day they go back to them instead of our troops to fighting terrorists.

    ” On his part, Akinterinwa explained that rising inflation in Nigeria and elsewhere have much to do with the Russia-Ukrainian war in several ways.

    His words: “First, when an event takes place in any given place, there is always the domino effect, no matter how minute.

    When a statement is made by an important public figure in a country, it is internationally reported.

    People in other countries can listen to the statement in the comfort of their homes.

    Based on that statement, new opinions are formed: there can be agreement or disagreement with and even condemnation.

    This is a permissible interference.

    If the statement is about a government’s intention to raise taxes or about nationalise some businesses, international stakeholders cannot but be so concerned.

    “The issue of the rising inflation is not different because it is not limited by territorial boundaries.

    Goods are manufactured in one country; the buyers are in another country.

    The instruments of payment are administered elsewhere.

    This is a message that the Russo-Ukrainian war has communicated to the world: messages of disruption in the domestic and global order with all their attendant implications in Ukraine; disruption of demand and supply in EU countries; disruption of import and export, disruption in international communications, disruption in social services, in other countries of the world, etc.

    The domino effects can largely explain the inflationary trend you raised.

    ” He pointed to the economic sanctions taken against Russia by the European Union (EU) and the United States as part of the causes of the current disruptions in the global economy.

    He added: “The sanctions cannot but generate inflation.

    Russia supplies a lot of gas to the EU.

    Russia was compelled to introduce the use of its own national currency as international money as a result of the sanctions.

    The BRICS (Brazil, Russia, India, China and South Africa) is also preparing to introduce a new convertible currency as an alternative to the pound sterling and the US dollar.

    All these measures go beyond micro and macro-economic considerations.

    In fact, aviation costs, as well as wheat and other cereals that Ukraine normally exports to the world, including to Africa, have been adversely affected.

    “True enough, the war has created scarcity in various domains.

    The scarcity generates inflation and inflation is spreading worldwide because the international community lives interdependently and based on demand and supply.

    When there is scarcity, inflation follows.

    Nigeria cannot be an exception in terms of impact, especially because, as I have said, the war creates different problems ranging from politico-diplomatic to economic-cultural and military for other members of the international community.

    ” On why Nigeria seems to be heavily impacted by the war, Akinterinwa noted: “First, Nigeria maintains diplomatic ties with both Ukraine and Russia and the relationships are both warm.

    Nigeria’s diplomacy should, under normal circumstances, be to avoid being the friend of one and enemy of the other.

    But because of the misapplication of Nigeria’s policy of non-alignment, and particularly by carelessly aligning with Ukraine, by asking Russia to withdraw its troops from Ukraine, it is now on record that Nigeria has taken a side, which is apparently not in Nigeria’s national interest.

    Nigeria has become the enemy of Russia and the friend of Ukraine.

    The friendship with Ukraine is not really a big deal when compared to the implications for Nigeria’s industrial development for which Russia stands on a higher pedestal than Ukraine.

    “While it is true that thousands of Nigerians are studying in Ukraine and other thousands are doing the same in Russia, Nigeria’s ties with Russia are more notable because of the Ajaokuta Steel project.

    The former Soviet Union took the side of Nigeria during her civil war.

    Based on the Russo-Nigerian agreement of 2019, by which Russia agreed to help complete the Ajaokuta project, and in light of the pledges made at the Russia-African Summit held in Sochi, Russia in 2019 to bring development assistance to African countries, there is no way Nigeria will not be heavily impacted upon by the war, especially in terms of future punitive measures from the side of Russia.

    ”He also concurred that with the end of the conflict nowhere in sight, Nigerians should expect the worst scenarios going forward.

    His words: “When a conflict persists without any quick end in sight, the worst scenarios must be expected.

    First, further hardship in lifestyle must be expected.

    Increasing loss of lives, rising inflation, and deepening animosity, not only vis-à-vis the invader but also towards the Ukrainian leader who paved the way for the war.

    War weariness cannot but become a fresh factor.

    Costs of prosecuting the war will not only increase but will not be available for any development purposes.

    In other words, it can be argued that security takes priority and that no development can take place in an environment of inclemency.

    Coups d’état cannot be ruled out as well as animosity towards those aiding and abetting the prolongation of the war.

  •  Russia s Vladimir Putin and China s Xi Jinping are expected to attend the G20 summit in Bali in November according to Indonesia s President Joko Widodo Xi Jinping will come President Putin has also told me he will come Widodo told Bloomberg in an interview published on Friday Indonesia currently held the G20 presidency Widodo had invited Putin but the Kremlin had so far not confirmed the Russian leader s plans either way Presidential advisor Siti Ruhaini confirmed that Widodo had been told Putin and Xi would come That s what the president said she noted As the holder of the G20 presidency Indonesia naturally wants the summit to be a forum where everyone gets together in a friendly atmosphere Ruhaini added Widodo had tried to mediate between Russia and Ukraine visiting the two countries in late June on a trip that he described as a peace mission He has warned that a global food crisis caused by the Russian invasion of Ukraine would send people in developing and poor countries into the abyss of extreme poverty and hunger There was no immediate confirmation of Putin and Xi s attendance plans from Russian or Chinese sources Putin s participation in the summit is considered problematic in the West amid Russia s invasion of Ukraine and several countries had put in doubt whether they would participate if Putin attended in person Ukrainian President Volodymyr Zelensky had also been invited China is also experiencing heightened tensions with the U S that were exacerbated by U S House Speaker Nancy Pelosi s recent visit to Taiwan which was followed by a U S congressional delegation visiting Taipei Beijing called the moves provocations and launched large scale military manoeuvres around the democratic island republic in response Indonesia is seeking trade and investment and is not seeking to join any bloc Widodo told Bloomberg Indonesia wants to be friends with everyone We don t have problems with any country he said NewsSourceCredit NAN
    Indonesian president: Putin and Xi to attend November G20 summit
     Russia s Vladimir Putin and China s Xi Jinping are expected to attend the G20 summit in Bali in November according to Indonesia s President Joko Widodo Xi Jinping will come President Putin has also told me he will come Widodo told Bloomberg in an interview published on Friday Indonesia currently held the G20 presidency Widodo had invited Putin but the Kremlin had so far not confirmed the Russian leader s plans either way Presidential advisor Siti Ruhaini confirmed that Widodo had been told Putin and Xi would come That s what the president said she noted As the holder of the G20 presidency Indonesia naturally wants the summit to be a forum where everyone gets together in a friendly atmosphere Ruhaini added Widodo had tried to mediate between Russia and Ukraine visiting the two countries in late June on a trip that he described as a peace mission He has warned that a global food crisis caused by the Russian invasion of Ukraine would send people in developing and poor countries into the abyss of extreme poverty and hunger There was no immediate confirmation of Putin and Xi s attendance plans from Russian or Chinese sources Putin s participation in the summit is considered problematic in the West amid Russia s invasion of Ukraine and several countries had put in doubt whether they would participate if Putin attended in person Ukrainian President Volodymyr Zelensky had also been invited China is also experiencing heightened tensions with the U S that were exacerbated by U S House Speaker Nancy Pelosi s recent visit to Taiwan which was followed by a U S congressional delegation visiting Taipei Beijing called the moves provocations and launched large scale military manoeuvres around the democratic island republic in response Indonesia is seeking trade and investment and is not seeking to join any bloc Widodo told Bloomberg Indonesia wants to be friends with everyone We don t have problems with any country he said NewsSourceCredit NAN
    Indonesian president: Putin and Xi to attend November G20 summit
    Foreign3 months ago

    Indonesian president: Putin and Xi to attend November G20 summit

    Russia’s Vladimir Putin and China’s Xi Jinping are expected to attend the G20 summit in Bali in November, according to Indonesia’s President,  Joko Widodo.

    “Xi Jinping will come.

    President Putin has also told me he will come,’’ Widodo told Bloomberg in an interview published on Friday.

    Indonesia currently held the G20 presidency.

    Widodo had invited Putin but the Kremlin had so far not confirmed the Russian leader’s plans either way.

    Presidential advisor, Siti Ruhaini confirmed that Widodo had been told Putin and Xi would come.

    “That’s what the president said,’’ she noted.

    “As the holder of the G20 presidency, Indonesia naturally wants the summit to be a forum where everyone gets together in a friendly atmosphere,’’ Ruhaini added.

    Widodo had tried to mediate between Russia and Ukraine, visiting the two countries in late June on a trip that he described as a peace mission.

    He has warned that a global food crisis caused by the Russian invasion of Ukraine would send people in developing and poor countries into “the abyss of extreme poverty and hunger.

    ’’ There was no immediate confirmation of Putin and Xi’s attendance plans from Russian or Chinese sources.

    Putin’s participation in the summit is considered problematic in the West amid Russia’s invasion of Ukraine and several countries had put in doubt, whether they would participate if Putin attended in person.

    Ukrainian President Volodymyr Zelensky had also been invited.

    China is also experiencing heightened tensions with the U.

    S. that were exacerbated by U.

    S. House Speaker Nancy Pelosi’s recent visit to Taiwan, which was followed by a U.

    S. congressional delegation visiting Taipei.

    Beijing called the moves provocations and launched large-scale military manoeuvres around the democratic island republic in response.

    Indonesia is seeking trade and investment and is not seeking to join any bloc, Widodo told Bloomberg.

    “Indonesia wants to be friends with everyone,’’ “We don’t have problems with any country.

    ’’ he said.


    NewsSourceCredit: NAN

  •  The German economy became more dependent on China in the first half of 2022 with direct investment and its trade deficit reaching new heights This is despite political pressure on Berlin to pivot away from Beijing according to research seen by Reuters At the same time growth in German exports to China weakened significantly the German Economic Institute IW said in its study citing economists pointing to a trend towards more local production in the Chinese market The German economy is much more dependent on China than the other way round said Juergen Matthes who authored the study He warned that this dependence posed a political problem as Beijing s stance on the Ukraine war and its military posture towards Taiwan placed German business with the world s second largest economy under scrutiny Yet despite these dangers and problems economic interdependencies with China have been moving in the wrong direction at a tremendous pace in the first half of 2022 the economist said The study found that German investment in China amounted to around 10 billion euros 10 billion between January and June far exceeding the previous peak half year value recorded since the turn of the millennium of 6 2 billion euros The Chinese sales market and the profits beckoning there in the short term simply seem too attractive Matthes said China s share of German imports rose to 12 4 per cent in the first half of 2022 compared with 3 4 per cent in 2000 On the other hand German imports of Chinese goods surged in value terms by 45 7 per cent year on year during that six month period the IW found Germany s trade deficit with the country had leapt to almost 41 billion euros by mid 2022 the institute said adding that the gap was set to widen further The IW called for a policy turnaround urging a reduction in incentives for doing business with China and a shift towards more trade with other emerging markets particularly in Asia Matthes also called on German businesses to curb their dependency on China warning that any Western sanctions against Beijing for example if it invaded Taiwan would threaten particularly exposed companies with bankruptcy We otherwise risk running into a too big to fail situation as we saw with the banks he said 1 0 9916 euros AIB NewsSourceCredit NAN
    German dependence on China growing ‘at tremendous pace’, research shows
     The German economy became more dependent on China in the first half of 2022 with direct investment and its trade deficit reaching new heights This is despite political pressure on Berlin to pivot away from Beijing according to research seen by Reuters At the same time growth in German exports to China weakened significantly the German Economic Institute IW said in its study citing economists pointing to a trend towards more local production in the Chinese market The German economy is much more dependent on China than the other way round said Juergen Matthes who authored the study He warned that this dependence posed a political problem as Beijing s stance on the Ukraine war and its military posture towards Taiwan placed German business with the world s second largest economy under scrutiny Yet despite these dangers and problems economic interdependencies with China have been moving in the wrong direction at a tremendous pace in the first half of 2022 the economist said The study found that German investment in China amounted to around 10 billion euros 10 billion between January and June far exceeding the previous peak half year value recorded since the turn of the millennium of 6 2 billion euros The Chinese sales market and the profits beckoning there in the short term simply seem too attractive Matthes said China s share of German imports rose to 12 4 per cent in the first half of 2022 compared with 3 4 per cent in 2000 On the other hand German imports of Chinese goods surged in value terms by 45 7 per cent year on year during that six month period the IW found Germany s trade deficit with the country had leapt to almost 41 billion euros by mid 2022 the institute said adding that the gap was set to widen further The IW called for a policy turnaround urging a reduction in incentives for doing business with China and a shift towards more trade with other emerging markets particularly in Asia Matthes also called on German businesses to curb their dependency on China warning that any Western sanctions against Beijing for example if it invaded Taiwan would threaten particularly exposed companies with bankruptcy We otherwise risk running into a too big to fail situation as we saw with the banks he said 1 0 9916 euros AIB NewsSourceCredit NAN
    German dependence on China growing ‘at tremendous pace’, research shows
    Foreign3 months ago

    German dependence on China growing ‘at tremendous pace’, research shows

    The German economy became more dependent on China in the first half of 2022, with direct investment and its trade deficit reaching new heights.

    This is despite political pressure on Berlin to pivot away from Beijing, according to research seen by Reuters.

    At the same time, growth in German exports to China weakened significantly, the German Economic Institute (IW) said in its study, citing economists pointing to a trend towards more local production in the Chinese market.

    “The German economy is much more dependent on China than the other way round,’’ said Juergen Matthes, who authored the study.

    He warned that this dependence posed a political problem as Beijing’s stance on the Ukraine war and its military posture towards Taiwan placed German business with the world’s second-largest economy under scrutiny.

    “Yet despite these dangers and problems, economic interdependencies with China have been moving in the wrong direction at a tremendous pace in the first half of 2022,’’ the economist said.

    The study found that German investment in China amounted to around 10 billion euros ($10 billion) between January and June, far exceeding the previous peak half-year value recorded since the turn of the millennium of 6.2 billion euros.

    “The Chinese sales market and the profits beckoning there in the short term simply seem too attractive,’’ Matthes said.

    China’s share of German imports rose to 12.4 per cent in the first half of 2022, compared with 3.4 per cent in 2000. On the other hand, German imports of Chinese goods surged in value terms by 45.7 per cent year-on-year during that six-month period, the IW found.

    Germany’s trade deficit with the country had leapt to almost 41 billion euros by mid-2022, the institute said, adding that the gap was set to widen further.

    The IW called for a policy turnaround, urging a reduction in incentives for doing business with China and a shift towards more trade with other emerging markets, particularly in Asia. Matthes also called on German businesses to curb their dependency on China, warning that any Western sanctions against Beijing, for example if it invaded Taiwan, would threaten particularly exposed companies with bankruptcy.

    “We otherwise risk running into a ‘too big to fail’ situation as we saw with the banks,’’ he said.

    ($1 = 0.9916 euros) AIB
    NewsSourceCredit: NAN

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