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China's President Xi Jinping attends a meeting in Brazil in November 2024.
Tensions between China and the West heat up amid military exercises
Just days after a Chinese naval helicopter nearly collided with a Philippine patrol plane over a contested reef, China’s military started live-fire drills in waterways near Vietnam on Monday and between Australia and New Zealand over the weekend in an “unprecedented” display of firepower.
Beijing’s democratic critics put up their own show of force. On Sunday, France held military exercises with the Philippines and vowed to deepen their defense ties. On Monday, Japan followed suit, forging a security pact with Manila.
France, which is looking to assert its status as a Pacific power through its overseas island territories across the region, is now negotiating an agreement with the Philippines to allow troops to train on each other’s land, similar to the deal Manila has with the US and Australia.
At a meeting in Manila on Monday, Japanese Defense Minister Gen Nakatani and his Philippine counterpart, Gilberto Teodoro, agreed to work together to counter “unilateral attempts by China and other countries to change the international order and the narrative.”
After Vietnam released new maps marking what Hanoi considers its maritime boundary with Beijing, China on Monday began four days of live-fire military exercises in the Gulf of Tonkin. Vietnam has yet to respond.
Last week, Australia and New Zealand accused China of failing to announce the live-fire component of its military drills in international waters in the Tasman Sea. The abrupt shift in protocol forced commercial airlines to reroute flights last Friday morning. On Sunday, China’s Defense Ministry denied what it called “unreasonable accusations” from Canberra and Wellington.
It’s just the latest tensions between Australia and its largest trading partner. Earlier this month, a Chinese J-16 fighter plane released flares that passed within 100 feet of an Australian P-8 Poseidon surveillance jet flying over the South China Sea.
Where does it all go? Beijing has been trying to seize on the Trump administration’s cuts to international aid and America-first foreign policy to tighten its grip over the Pacific. But China’s early success at promoting economic and diplomatic relations are overshadowed by its “beefs” with most of its neighbors over sovereignty and national security, said Jeremy Chan, a senior analyst at the Eurasia Group.
“China can’t make friends with anybody,” Chan said. “If you zoom out and look at the South China Sea, China basically has a border dispute with almost every country in the Indo-Pacific. That puts a limit on Beijing’s ability to leverage Trump 2.0.”
An explosion is pictured at an exploration site of the company Greenland Anorthosite Mining of an anorthosite deposit close to the Qeqertarsuatsiaat fjord, Greenland, on Sept. 11, 2021.
Greenland’s thwarted rare earths miner hopes for change in March election
Greenlanders are set to go to the polls next month as US President Donald Trump increases pressure on Denmark to transfer sovereignty of the semi-autonomous Arctic island to the United States.
Australia-based Energy Transition Minerals, the mining company that holds the license for controversial rare earths and uranium deposits, is hoping the social-democratic Siumut Party – currently the second-largest contingent in the Greenlandic parliament, known as the Inatsisartut – will oust the ruling left-wing environmentalist Inuit Ataqatigiit Party in the March 11 election. The two parties are currently in a governing coalition together, with IA in the top position, but Siumut has attracted attention by pledging to hold a referendum on independence from Denmark this year.
After taking power in 2021, the IA banned uranium mining, effectively halting exploration of what Energy Transition Minerals bills as potentially the largest deposit of rare earth oxides in the world. Rare earths are a family of 17 metallic minerals needed for the batteries and magnets used for electric cars, power plants, and fighter jets. China dominates the supply chain, controlling roughly 70% of all mining and 90% of refining capacity.
The IA opposed the mining because of the high density of uranium mixed into the ore, which it feared would generate radioactive pollution along the island’s southwest coast, where much of the mostly indigenous population of roughly 57,000 lives.
Now, Energy Transition Minerals is betting Siumut, under whose rule the mining project was originally approved, will win and lift the moratorium to help generate more income for Greenland to achieve economic self-sufficiency and open the door to a long-sought breakaway from the Danish kingdom.
Awkward technicalities: With 7% of the company, Energy Transition’s largest shareholder is China’s Shenghe Resources, but the firm has vowed to supply the West with its metals. Thanks to America’s trade deals with the European Union and Australia, however, arcane Treasury rules may mean the Melbourne-headquartered company’s rare earths qualify for lucrative US tax credits. With the stock price trading at a fraction of a penny per share, however, Wall Street has doubts about the mining firm’s future.Endorsed by steelworkers onstage, then-Republican presidential nominee Donald Trump puts on a hard hat during his Make America Great Again Rally in Latrobe, Pennsylvania, on Oct. 19, 2024.
Trump tariffs steel and aluminum at 25%
US President Donald Trump signed an executive order Monday imposing 25% tariffs on all steel and aluminum imports to the US. This raises the tariff rate on aluminum to 25% from the previous 10% that Trump imposed in 2018, and it reinstates a 25% tariff on “millions of tons” of steel and aluminum imports previously exempted or excluded.
“Today I’m simplifying our tariffs on steel and aluminum,” Trump stated. “It’s 25% without exceptions or exemptions.”
Cue the negotiations. On Monday, Trump reportedly took a call from Australian Prime Minister Anthony Albanese, who is seeking a carve-out for Australian steel exports. Albanese described their conversation as “constructive and warm” but did not want to “speak on [Trump’s] behalf.”
The EU said it would respond with “firm and proportionate countermeasures.” Prime Minister Justin Trudeausaid Tuesday that the tariffs were “entirely unjustified” and “unacceptable,” noting that Canada – the US’ biggest source of aluminum and one of its top sources of steel – would respond if necessary but will try to work with the US administration to avoid them. Mexican President Claudia Sheinbaum, who has also threatened countermeasures in recent weeks, said her country would keep a “cool head.”
The new US tariffs are set to take effect on March 4, and Trump added that he will also consider additional tariffs on cars, pharmaceuticals, and computer chips.
Why now? Trump’s announcement came two days after the visit of Japanese Prime Minister Shigeru Ishiba, who announced that Japan would increase its US investment to $1 trillion, including a commitment from Nippon Steel to “invest heavily” in US Steel, after a $15 billion buyout was nixed last year by the Biden administration. The deal is another reflection of Trump’s plan to strengthen domestic steel production and make imports less attractive – or even necessary.
Was there a connection? “It’s certainly possible,” says Eurasia Group’s Japan Director David Boling. “But we knew steel tariffs were coming — it was only a matter of time. While Trump is proud to be Tariff Man, he could also be called the Man of Steel. Steel is his favorite industry.” We’re waiting to see whether Ishiba picks up the phone like Albanese and leverages Nippon’s investment to lift the levies.U.S. President Joe Biden, Japan's Prime Minister Fumio Kishida, Australia's Prime Minister Anthony Albanese and India's Prime Minister Narendra Modi take part in a Quad leaders summit family photo in Claymont, Delaware, U.S., September 21, 2024.
US bolsters pacific alliance amid China concerns
In his final months in office, US President Joe Biden is looking to bolster the China-wary alliance known as “The Quad,” which brings together the US, Australia, Japan, and India. This weekend he hosted Quad leaders at his home in Wilmington, Delaware.
While the White House claimed the summit targeted no specific country, a joint statement condemned “coercive and intimidating maneuvers in the South China Sea,” a clear shot at Beijing. And in a so-called “hot mic” moment, Biden commented that “China continues to behave aggressively, testing us all across the region.”
Beijing, for its part, sees the Quad as a “threat and challenge to regional peace and security.”
The Quad summit announced expanded collaboration in maritime patrols, disaster relief, cervical cancer vaccines, tech fellowships, and clean energy projects.
The Quad hasn’t always been a top priority for its members – it lapsed almost entirely between 2008 and 2017. But when asked about the future of the group following the approaching departures of both Biden and Japanese PM Fumio Kishida, Australian Prime Minister Anthony Albanese predicted the Quad will endure, while Indian Prime Minister Narendra Modi stated “The Quad is here to stay.” To underscore that, he offered to host the group’s next gathering in 2025.Signage for The University of Melbourne is seen in Melbourne, Wednesday, November 2, 2022.
Australia to cut number of foreign students
Australia this week became the latest country to take measures to restrict immigration, as the government announced a fresh cap on the number of foreign students it will admit for study at universities and vocational schools.
The measure comes amid broader, ongoing efforts to rein in immigration, which soared in recent years to help fill pandemic-related vacancies, but which has also put pressure on infrastructure and housing prices.
Next year, Australia will allow in only 275,000 foreign students. The country is currently the temporary home for nearly three times that number.
The government is aiming to bring the number of foreign students back to pre-pandemic levels, and to root out instances in which foreigners use study visas as an excuse to come to Australia for other purposes.
Currently, there are 10% more international students at Aussie state universities than there were before COVID-19. Among private vocational schools, the number is 50%.
Universities aren’t happy. Australia has historically been a major destination for foreign students, who constitute a $50 billion annual industry. They make up the second-largest economic sector for Australia after mining, according to Universities Australia, which warned Tuesday that “having fewer students here will only widen the funding gap at a time when universities need greater support.”
The logo of the Australian National University (ANU) is seen at the campus in Canberra, Wednesday, September 16, 2020. The Australian National University (ANU) says COVID-19 will force it to shed hundreds of jobs from its workforce. Estimates put the total job losses at 465, including 250 voluntary redundancies.
Australia to cut number of foreign students
Next year, Australia will allow in only 275,000 foreign students. The country is currently the temporary home for nearly three times that number. The government is aiming to bring the number of foreign students back to pre-pandemic levels, and to root out instances in which foreigners use study visas as an excuse to come to Australia for other purposes. Currently, there are 10% more international students at Aussie state universities than there were before COVID-19. Among private vocational schools, the number is 50%.
Universities aren’t happy. Australia has historically been a major destination for foreign students, who constitute a $50 billion annual industry. They make up the second-largest economic sector for Australia after mining, according to Universities Australia, which warned Tuesday that “having fewer students here will only widen the funding gap at a time when universities need greater support.”A satellite image shows smoke rising from the Park Fire in Chico, California, U.S., July 26, 2024.
Hard Numbers: California burns, Countries push for cease-fire, Meloni makes nice, Japan basks in Olympic glory
350,000: The Park fire in northern California has burned through over 350,000 acres of land — an area larger than New York City — and was just 10% contained as of Sunday. Authorities said the fire was spreading at a rate of 5,000 acres per hour, and police arrested a man who they suspect of having deliberately set the blaze in an act of arson.
3: On Friday, Australia, New Zealand, and Canada jointly called for an immediate cease-fire in Gaza and for Israel to respond “substantively” to a July 19 ruling from the International Court of Justice about the illegality of Israeli settlements and military occupation in the West Bank. The statement came a day after US Vice President Kamala Harris urged Israeli Prime Minister Benjamin Netanyahu to reach a Gaza deal.
3: Italian Prime Minister Giorgia Melonisigned a three-year deal with China while visiting Beijing on Saturday. She also promised to implement earlier bilateral agreements derailed by shifting geopolitics and to try new forms of cooperation. Meloni won praise from the US for officially pulling out of China’s Belt and Road Initiative last year, but with a possible Sino-European trade war looming – aggravated by China dumping its production overcapacity on world markets – she seems to be more conciliatory these days.
7: As of Sunday afternoon, Japan was leading the Olympic medal count with 7 podium finishes, including two golds in Judo. The lesson here is clear: Don’t wrestle with Japanese athletes. There will be more Judo finals on Monday, with a total of 19 gold medals to be awarded in finals across events in artistic gymnastics, swimming, shooting, diving, equestrian, mountain biking, skateboarding, archery, fencing, and canoe slalom (yep, that last one threw us too – here’s a primer).Australian Prime Minister Anthony Albanese and New South Wales Premier Chris Minns join other politicians as they lay flowers at the scene of Saturday's mass stabbing at Bondi Junction, Sydney, Australia April 14, 2024.
Hard numbers: Sydney stabbing, Pricey Pakistan, US Steel deal, Costco gold rush
6: Australia is reeling from one of the country’s deadliest mass killings after six shoppers were stabbed to death at a mall in Sydney on Saturday. The attack left several others injured, including a baby who is in intensive care. The assailant, who was shot dead by police, was known to authorities and had been diagnosed with a mental illness as a teenager.
25: Pakistan has the highest cost of living in Asia, according to a report from the Asian Development Bank, and it’s only set to grow with a crushing 25% inflation rate. Authorities have hiked interest rates to 22% to try to alleviate the problem, but Pakistan’s economy will likely require further support from the International Monetary Fund.
14.9 billion: Shareholders in US Steel overwhelmingly voted to approve an offer from Nippon Steel to acquire the company at about $55 a share — but don’t expect the deal to close anytime soon. US President Joe Biden has expressed opposition to the deal, which could cost him crucial support from steelworkers in upper Midwestern swing states like Michigan, Pennsylvania, and Wisconsin.
200 million: Wholesaler Costco is estimated to be selling over $200 million worth in one-ounce gold barsevery month, according to an analysis by Wells Fargo. Those who made their purchases in the fall, when Costco was selling the bars for around $2,000 each have earned a nice bit of profit, as gold has surged to over $2,300 an ounce since March.