US President Joe Biden's Response to Taiwan's Invasion
• US President Joe Biden has stated that he is not ruling out using U.S. military force in response to a potential Chinese invasion of Taiwan.
• Biden differentiates between deploying on the ground, air power, and naval power, but the response would depend on the circumstances.
• He has made clear to Chinese President Xi Jinping that the U.S. policy refrains from endorsing Taiwanese independence, but would defend the island if China unilaterally attempts to change the status quo.
• Biden has not stated if the U.S. would launch strikes from its military bases in Japan or the Philippines.
• The U.S. has reinforced its network of alliances in Asia, particularly with Japan and the Philippines, with Manila granting the U.S. military access to key bases facing Taiwan.
• Fears of a war over the island have risen in tandem with the growth of China’s military power, with some U.S. military officers even claiming Beijing could be ready to invade Taiwan by 2027.
• The U.S. has long taken an approach of strategic ambiguity to deter Beijing from using force against the island and dissuade Taipei from seeking formal independence while giving it breathing room in its ties with both.
Read more at - https://www.japantimes.co.jp/news/2024/06/05/asia-pacific/politics/biden-defend-taiwan-china/
Korea and Africa to Strengthen Joint Economic Committee
• Korea and Africa announced plans to establish a joint economic committee to strengthen future business partnerships.
• The summit, organized by the Korea International Trade Association (KITA), aimed to enhance economic and business interactions.
• Over 500 attendees discussed strategies to enhance collaboration in job creation and the trade of critical minerals.
• A group of 20 African leaders shared a common view with Korea’s President Yoon Suk Yeol and ranking government officials.
• Top executives from major conglomerates, including Hyundai Motor Group Executive Chair Chung Euisun, Lotte Group Chairman Shin Dong-bin, and CJ Group Chairman Sohn Kyung-shik, attended the summit.
• Both sides agreed to commence discussions for the establishment of the Korea-Africa Economic Collaboration Committee.
• KITA Chairman Yoon Jin-sik and Federation of Korean Industries Chairman Ryu Jin attended the summit to boost business ties with their African counterparts.
• The Ministry of Trade, Industry and Energy signed 12 MOUs in the areas of trade, investments, and mineral exchanges with its African counterparts.
• Key themes discussed included activating investments and driving industrialization in Africa, increasing trade volume and creating more jobs, strengthening mineral supplies to Korea, and addressing decarbonization.
• The event came a day after delegations from 48 African nations visited Seoul for a summit with Yoon.
Read more at - https://www.koreatimes.co.kr/www/tech/2024/06/419_376058.html
Pakistan's Prime Minister Shehbaz Sharif's China Visit
• Pakistani Prime Minister Shehbaz Sharif's first visit to China since his second term began in March.
• The visit aims to enhance ties between China and Pakistan, push forward the development and upgrade of the China-Pakistan Economic Corridor (CPEC), and expand cooperation in emerging sectors.
• Despite security issues along the CPEC, Sharif's visit is expected to elevate mutual trust and push for new cooperation to boost momentum.
• The visit will also promote interaction between enterprises in both countries, utilize special economic zones and Pakistan's labor advantages to establish joint ventures, facilitate the transfer of industries and technologies, and enhance Pakistan's manufacturing output.
• Chinese Foreign Ministry spokesperson Mao Ning said the leaders of the two countries will have an in-depth exchange of views on China-Pakistan relations and issues of mutual interest.
• Sharif will also visit South China's Guangdong Province and Northwest China's Shaanxi Province.
• The visit will also include meetings with corporate executives of leading Chinese companies dealing with oil and gas, energy, ICT, and emerging technologies.
• The visit will also address the China-Pakistan Business Forum with leading businesspeople, entrepreneurs, and investors from both countries.
• The visit will also focus on counter-terrorism and safeguarding the security of the CPEC.
Read more at - https://www.globaltimes.cn/page/202406/1313611.shtml
Indian Prime Minister Narendra Modi's Third Term Challenges
• Indian Prime Minister Narendra Modi claimed victory for a third term, despite his Bharatiya Janata Party (BJP) failing to secure a majority of seats.
• Experts predict that Modi's ambition to compete with Chinese manufacturing and improve India's business environment will be difficult to achieve due to the country's poor business environment and the controversial reforms in tax and labor.
• The Modi administration plans to push through regulations making it easier to hire and fire workers, but experts believe this ambition is unlikely to be realized.
• The Modi administration's policies have not had many advantages and the government lacks motivation to address the issue.
• China-India relations are unlikely to see major improvement after Modi's reelection, with analysts predicting a more hawkish and aggressive approach to external policies.
• The Indian government intends to embrace protectionism to develop its own manufacturing, as China's manufacturing has a clear advantage over India's.
• Despite the low China-India relations, China has overtaken the US to become the top trading partner of India, and the trade deficit with China is increasing.
Read more at - https://www.globaltimes.cn/page/202406/1313634.shtml
Australian Competition and Consumer Commission (ACCC) Investigates Armaguard
• Armaguard, a cash transportation monopoly, is under scrutiny for its business model and access to bank notes and coins.
• Emergency talks led to a $26 million financial bailout from major banks and retailers, which was rejected.
• ACCC chair Gina Cass-Gottlieb is considering Armaguard's conduct since its September merger with Prosegur.
• The ACCC is monitoring Armaguard to ensure compliance with merger conditions, including maintaining distribution network and not increasing prices.
• The ACCC is also scrutinizing Armaguard's misuse of market power.
Read more at - https://www.abc.net.au/news/2024-06-05/fresh-accc-scrutiny-of-troubled-armaguard/103941522
Deepanjali Singh (BA IR 2nd year) (Region Head)
Gungun Thakur (BA IR 1st year)
Published by: Varsha Das (BA IR 2nd year)
