China boosts defense spending as regional disputes heat up

A conductor leads the military band as they perform a national anthem during the opening session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, on March 5, 2024. (AP)
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Updated 05 March 2024
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China boosts defense spending as regional disputes heat up

  • China has the world’s second-largest defense budget behind the United States
  • China’s military spending makes up 1.6 percent of GDP, far less than United States 

China announced Tuesday it would boost its defense spending in 2024, as hostility over Taiwan and in the South China Sea grows.

The 7.2 percent increase, identical to last year’s figure, was announced at the start of the annual meeting of the country’s rubber-stamp parliament, the National People’s Congress (NPC).

China will spend 1.665 trillion yuan ($231.4 billion) on defense in 2024, according to the budget report that lays out the government’s financial plans for the year ahead.

China has the world’s second-largest defense budget behind the United States, even though the People’s Liberation Army (PLA) surpasses the US military by number of personnel.

Still, China’s military spend is around three times smaller than Washington’s in recent years.

The world’s second-largest economy will maintain “reasonable growth” in its defense budget to “safeguard its sovereignty, security and development interests,” NPC spokesman Lou Qinjian said Monday.

'Viewed with suspicion'




Soldiers of People's Liberation Army (PLA) march in formation during the military parade marking the 70th founding anniversary of People's Republic of China, on its National Day in Beijing, China, on October 1, 2019. (REUTERS)

The country’s expenditure on its armed forces has been on the rise for decades, broadly in line with economic growth.

China’s military spending makes up 1.6 percent of its GDP, far less than the United States or Russia, according to the Stockholm International Peace Research Institute (Sipri).

But its defense expansion is viewed with suspicion by Washington, as well as other powers in the region including Japan, with which Beijing has a territorial dispute over islands in the East China Sea.

China has also increasingly flexed its muscles in the South China Sea, which it claims almost entirely despite an international arbitration ruling that declared its stance baseless.

China’s boost in spending is also a cause for concern for self-ruled Taiwan, which Beijing says is part of its territory to be claimed by force if necessary.

As the NPC kicked off on Tuesday, the government work report said China would again “resolutely oppose separatist activities aimed at ‘Taiwan independence’” in 2024.

'Biggest challenge to NATO'

China also says it is worried about cooperation between its regional rivals and the United States, as well as NATO.

NATO chief Jens Stoltenberg said in January that China was the “biggest long term challenge NATO Allies face.”

“We see them in Africa, we see them in the Arctic, we see them trying to control our critical infrastructure,” he added.

China made “a number of significant acquisitions, including a substantial increase in number of nuclear warheads” last year, James Char, an expert on the Chinese army at Nanyang Technological University (NTU) in Singapore, told AFP.

According to Sipri, Beijing had 410 nuclear warheads in 2023, an increase of 60 from the year before.

However, that still significantly lags behind Washington’s 3,708 and Moscow’s 4,489.

Moreover, “recent military corruption scandals raise doubts about the effectiveness of (Beijing’s) missile force and overall military professionalism,” said Adam Ni, editor of China Neican, a newsletter on Chinese current affairs.

Over the course of the last year there has been a leadership overhaul of China’s Rocket Force — the army unit that oversees its nuclear arsenal — following media reports of a graft probe involving its former chief.

Among a slew of other dismissals, former defense minister Li Shangfu was sacked without explanation last October after just a few months in the job.

'US still top dog'

Corruption needs to be tackled if President Xi Jinping’s “goal of displacing the US armed forces as the world’s pre-eminent military power” is to be realized, said NTU’s Char.

For the time being, Washington remains firmly in the top spot.

The United States has the world’s highest military spending, according to Sipri — standing at $877 billion in 2022, the latest figures available.

China comes second, followed by Russia and India.

The United States also has “global presence and alliance networks, which China cannot replicate in the short term,” said Neican’s Ni.

Washington has hundreds of military bases abroad, while Beijing has just one, in Djibouti.

“Given the PLA’s shortcomings — — particularly in combined arms and joint operations -— it stands to reason that Beijing possesses neither the wherewithal nor the desire to initiate conflict against Washington or launch an invasion across the Taiwan Strait,” said Char.

“A lingering concern, however, is that aggressive interactions between the PLA and other militaries in the region carry the potential to go awry and escalate into a full-blown conflict.”


Trump meets with Argentina’s president, the first foreign leader he’s met with since election

Updated 3 sec ago
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Trump meets with Argentina’s president, the first foreign leader he’s met with since election

  • Javier Milei, a self-described ‘anarcho-capitalist’, is a frequent recipient of Trump praise
  • The Argentine president is known for his eccentric personality
PALM BEACH, Florida: Donald Trump met Thursday at his Mar-a-Lago club with Argentine President Javier Milei, the first foreign leader to meet with the president-elect since his victory in last week’s election.
The meeting was confirmed by a person who insisted on anonymity to discuss an event that hadn’t yet been announced publicly. The person said the meeting went well and said Milei also met with investors.
A short time later, Milei, a self-described “anarcho-capitalist” and frequent recipient of Trump praise, addressed the America First Policy Institute gala at Mar-a-Lago. He spoke briefly in English, then gave a longer speech in Spanish, pausing to allow an interpreter to translate, in which he slammed left-wing ideologies and saluted Elon Musk, the owner of X, saying his social media site is helping to “save humanity.”
Milei criticized a political ruling class that he said was responsible for a system that used unfair tax systems to force “the redistribution of wealth at gunpoint.”
The president of Argentina also congratulated Trump on his “resounding victory” in the election, saying, “Today the winds of freedom are blowing much stronger” and calling the victory “proof positive that the forces of heaven are on our side.”
Trump also spoke to the gala crowd, congratulating Milei “for the job you’ve done for Argentina” and saying it was an “honor” to have Argentina’s president at his club.
“The job you’ve done is incredible. Make Argentina Great Again, you know, MAGA. He’s a MAGA person,” Trump said to applause. “And you know, he’s doing that.”
Shortly after Milei’s election in November 2023, Trump posted on social media, “You will turn your country around and truly Make Argentina Great Again!”
Milei first met Trump in February at the Conservative Political Action Conference, or CPAC, in the Washington area. He has openly declared his admiration for Trump and when he saw him, he rushed to him screaming “president!” and gave him a close hug before they posed for pictures.
The Argentine president is known for his eccentric personality and first made a name for himself by shouting against Argentina’s “political caste” on television. The right-wing populist campaigned with a chainsaw as his prop to symbolize his plans to slash public spending and scrap government ministries.

Ben & Jerry’s says parent Unilever silenced it over Gaza stance

Updated 15 November 2024
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Ben & Jerry’s says parent Unilever silenced it over Gaza stance

  • The ice cream maker has sued Unilever for selling its business in Israel to its licensee there

NEW YORK: Ice cream brand Ben & Jerry’s said in a lawsuit filed Wednesday that parent company Unilever has silenced its attempts to express support for Palestinian refugees and threatened to dismantle its board and sue its members over the issue.
The lawsuit is the latest sign of the long-simmering tensions between Ben & Jerry’s and consumer products maker Unilever, which is planning to spin out its ice cream business next year.
The spin-out would include the top-selling Vermont-based maker of Chubby Hubby, although experts on corporate governance said the brand’s board, a centerpiece of the new lawsuit, could present challenges to the deal.
A rift first erupted between Ben & Jerry’s and Unilever in 2021 after the ice cream maker said it would stop selling its products in the Israeli-occupied West Bank because it was inconsistent with its values, a move that led some investors to divest Unilever shares.
The ice cream maker then sued Unilever for selling its business in Israel to its licensee there, which allowed marketing in the West Bank and Israel to continue. That lawsuit was settled in 2022.
In its new lawsuit, Ben & Jerry’s says that Unilever has breached the terms of the 2022 settlement, which has remained confidential. As part of the agreement, however, Unilever is required to “respect and acknowledge the Ben & Jerry’s independent board’s primary responsibility over Ben & Jerry’s social mission,” according to the lawsuit.
But, according to the lawsuit, “Ben & Jerry’s has on four occasions attempted to publicly speak out in support of peace and human rights. Unilever has silenced each of these efforts.”
In response to Reuters’ story, Unilever said in an emailed statement: “Our heart goes out to all victims of the tragic events in the Middle East. We reject the claims made by B&J’s social mission board, and we will defend our case very strongly.”
“We would not comment further on this legal matter,” it added.
Ben & Jerry’s said in an email: “We are confident that these issues will ultimately be resolved. Due to the ongoing nature of the litigation, we are unable to comment on the specifics.”
The lawsuit was filed in New York federal court.
Minor Myers, a professor at the University of Connecticut School of Law, said the tension between Ben & Jerry’s and Unilever would be top of mind in a deal, particularly if Unilever’s ice cream brands are acquired by a private equity firm or competitor company.
“The Ben & Jerry’s situation would be front of mind of any possible buyer,” Myers said. “To the extent that Ben & Jerry’s or a subsidiary wants to be liberated to say (what they want, it) may impact the sales of the flagship ice cream brand.”
That would result in a lower valuation for Unilever’s ice cream brands, Myers said.
There are fewer concerns if the ice cream brands become a separate publicly traded company, Myers said.
Ben & Jerry’s said in the lawsuit it has tried to call for a ceasefire, support the safe passage of Palestinian refugees to Britain, back students protesting at US colleges against civilian deaths in Gaza, and advocate for a halt in US military aid to Israel, but has been blocked by Unilever.
The independent board separately spoke out on some of those topics, but the company was muzzled, the lawsuit says.
Ben & Jerry’s said that Peter ter Kulve, Unilever’s head of ice cream, said he was concerned about the “continued perception of anti-Semitism” regarding the ice cream brand voicing its opinions on Gazan refugees, according to the lawsuit.
Unilever was also required under the settlement agreement to make a total of $5 million in payments to Ben & Jerry’s for the brand to make donations to human rights groups of its choosing, according to the lawsuit.
Ben & Jerry’s selected the left-leaning Jewish Voice for Peace and the San Francisco Bay Area Chapter of the Council on American-Islamic Relations, among others, the filing says.
Unilever in August objected to the selections, saying that Jewish Voice for Peace was “too critical of the Israeli government,” according to the lawsuit.
Ben & Jerry’s has positioned itself as socially conscious since Ben Cohen and Jerry Greenfield founded the company in a renovated gas station in 1978. It kept that mission after Unilever acquired it in 2000.
Unilever’s dozens of products include Dove soap, Hellmann’s mayonnaise, Knorr bouillon cubes, Surf detergent and Vaseline petroleum jelly.


US urges vigilance on Chinese investment as Xi opens Peru port

Updated 15 November 2024
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US urges vigilance on Chinese investment as Xi opens Peru port

  • The $3.5-billion complexis a symbol of the Asian superpower’s growing influence on the continent as it prepares to face off with a new Donald Trump administration
  • China's President Xi vowed in his speech to “promote connectivity” between China and South America.

LIMA: As China and Peru launched South America’s first Beijing-funded port in Chancay, Peru, on Thursday, the United States called on Latin American nations to be vigilant.

The $3.5-billion complex, located 80 kilometers north of Lima, is meant to serve as a major hub for Chinese trade at a time the Asian giant is under threat of major tariff hikes after Trump reenters the White House for a second term.

The port was officially opened in a ceremony attended virtually by China's President Xi Jinping and Peruvian counterpart Dina Boluarte from Lima, where they will attend an Asia-Pacific Economic Cooperation (APEC) summit on Friday and Saturday.

Xi vowed in his speech to “promote connectivity” between China and South America.

Peru — one of Latin America’s fastest-growing economies over the past decade — is China’s fourth-largest Latin American trading partner, with bilateral flows of nearly $36 billion in 2023.

Amid the celebration, Brian Nichols, the top US diplomat for Latin America, spoke out. “We believe it is essential that countries across the hemisphere ensure that PRC economic activities respect local laws as well as safeguard human rights and environmental protections,” he said, referring to the People’s Republic of China.

Pointing to the long US relationship with Peru, Nichols said: “We’ll be focused on building those relations and making sure that Peruvians understand the complexities of dealing with some of their other investors going forward.”

He said that the United States has also recently provided support to Peru, including train donations to the city of Lima, space cooperation led by NASA and the donation of nine Black Hawk helicopters to help police battle transnational crime.

Dan Kritenbrink, the top US diplomat for East Asia, said that the United States came with an “affirmative agenda” and was not seeking to force countries to choose between rival powers.

“We do want to make sure that countries have choices and they were able to make them freely without coercion,” Kritenbrink told reporters.

The United States for two centuries has considered Latin America its sphere of interest, but it has faced increasing competition around the world, especially in the economic sphere, from China.

US policymakers often highlight debt associated by Chinese projects and China’s use of its own workers in mega-projects.

The port will allow South American nations to skirt ports in Mexico and the United States as they trade with Asia.

Xi is set to meet on Saturday in Lima with outgoing US President Biden in their likely final encounter before Donald Trump returns to the White House.


Sri Lankan president’s coalition heads for landslide: early results

Updated 15 November 2024
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Sri Lankan president’s coalition heads for landslide: early results

COLOMBO: New Sri Lankan President Anura Kumara Dissanayake’s party was headed for a landslide win at snap legislative elections, initial results showed Friday.
With over half of the ballots in Thursday’s parliamentary elections counted, Dissanayake’s National People’s Power (NPP) coalition party had taken an unassailable lead with 63 percent of the vote, Election Commission results showed.


UK unveils finance reforms, ups risk-taking to drive growth

Updated 15 November 2024
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UK unveils finance reforms, ups risk-taking to drive growth

  • Finance minister announced plans to “modernize” the Financial Ombudsman Service, which deals with complaints between consumers and firms
  • Called for “free and open trade” with partners such as the United States under its incoming president Donald Trump

LONDON: Britain’s Labour government on Thursday announced reforms to its financial sector in a bid to grow the economy, including a plan to allow greater risk-taking.
Finance Minister Rachel Reeves outlined the plans in her first Mansion House speech — an annual address by the chancellor of the exchequer to business leaders.
Late Wednesday she announced plans to create mega pension funds, potentially boosting investment in the country by around £80 billion ($104 billion) in a move that mirrored schemes in Australia and Canada.
Reeves used her Mansion House address to say that measures brought in since the 2008 global financial crisis to “eliminate risk” have had “unintended consequences” in holding back growth.
“While it was right that successive governments made regulatory changes after the global financial crisis to ensure that regulation kept pace with the global economy of the time, it is important that we learn the lessons of the past,” she said.
“These changes have resulted in a system which sought to eliminate risk-taking. That has gone too far and, in places, it has had unintended consequences which we must now address.”
Reeves announced plans to “modernize” the Financial Ombudsman Service, which deals with complaints between consumers and firms.
A pilot scheme will meanwhile be launched to deliver digital bonds, embracing technology used by the cryptocurrency sector.
She called for “free and open trade” with partners such as the United States under its incoming president Donald Trump.
“There is so much potential for us to deepen our economic relationship on areas such as emerging technologies,” she said.
“I look forward to working closely with president-elect Trump and his team to strengthen our relationship in the years ahead.”
She added that Britain must “reset our relationship” with the European Union after Brexit.

The “megafunds” pensions plan could unlock vast sums “for infrastructure projects and businesses of the future,” the Treasury said.
Labour aims to pool assets of 86 local government pension schemes in England and Wales.
The Treasury added that together the schemes were on course to manage £500 billion in assets by 2030.
Prime Minister Keir Starmer’s new government also plans to consolidate workers’ defined contribution schemes, a common form of pension.
“These megafunds mirror set-ups in Australia and Canada, where pension funds take advantage of size to invest in assets that have higher growth potential,” the Treasury said.
Reeves hiked business taxes and government borrowing in her maiden budget at the end of October.
“Last month’s budget fixed the foundations to restore economic stability and put our public services on a firmer footing,” Reeves said in comments alongside the pensions announcement.
“Now, we’re going for growth. That starts with the biggest set of reforms to the pensions market in decades to unlock tens of billions of pounds of investment in business and infrastructure.”
She added that the reforms would also “boost people’s savings in retirement and drive economic growth.”
Some analysts urged caution over the pensions shakeup.
“The government’s hope will be... economies of scale,” noted Tom Selby, director of public policy at investment platform AJ Bell.
He added that “conflating a government goal of driving investment in the UK and people’s retirement outcomes brings a danger.”
“If it goes well, everyone can celebrate. But it’s clearly possible that it will go the other way, so there needs to be some caution in this push to use other people’s money to drive economic growth.”