Day: August 23, 2023

US agrees to sell military aircraft tracking system to Taiwan

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Receive free Taiwan updates We’ll send you a myFT Daily Digest email rounding up the latest Taiwan news every morning. The US has agreed to sell to Taiwan a system with which its F-16 fighters can search and track enemy aircraft through infrared technology, a rare move by the administration of President Joe Biden to help Taipei push back against ongoing Chinese military pressure near the island. The $500mn infrared search and track (IRST) system would “further strengthen our fighters’ ability to detect and track long-distance targets and greatly the…

China debt: Beijing warned opportunity costs are rising as it seeks comprehensive solution to local government crisis

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China is considering stronger measures to address risks from its local-government debt crisis, but opportunity costs are rising when it comes to curbing systemic risks in the state-dominated financial system, according to analysts. The financial system has already been put under pressure from property woes over the past few years, and analysts have warned that the costs could be huge if Beijing does not move fast enough to resolve the real estate market crisis, which has ramifications for local governments. “All in all, while the structural consequences of a disinflating…

The local government debt that threatens China’s economy

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Once known as one of China’s most impoverished provinces, the mountainous region of Guizhou has over the past decade become famous for a different reason: it is home to some of the world’s tallest bridges. From the 565-metre-high Duge Beipan river bridge that links Guizhou and neighbouring province Yunnan to the 332-metre-high Pingtang bridge that spans the Caodu river canyon, Guizhou’s investment in infrastructure has helped lift the province out of poverty, earning it special praise from President Xi Jinping. But the high ground has come with a high cost.…

Putin, Xi Slam West at BRICS Summit

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Johannesburg, South Africa —  China and Russia used the second day of the BRICS Summit of emerging economies to criticize the West, while also throwing their support behind the proposed expansion of what’s seen by some as an alternative power bloc. The leaders of Brazil, India, and China are all in South Africa — which is hosting the event — while Russian President Vladimir Putin is participating virtually to avoid arrest under an International Criminal Court warrant over war crimes in Ukraine. Via video link, Putin — who ordered Russia’s…

From Kuaishou to iQiyi, Chinese tech firms see stronger profits as they tout potential of generative AI

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Chinese technology companies got back on track for growth in the second quarter, as they continue to pin high hopes on generative artificial intelligence (AI) services amid uncertainties in the macro environment. Short-video app operator Kuaishou Technology on Tuesday posted quarterly revenue of 27.7 billion yuan (US$3.8 billion), up 27.9 per cent from the same period in 2022. The increase was primarily attributed to growth of its online marketing services, live-streaming and e-commerce business, the company said. Profit reached 1.48 billion yuan, compared with a 3.18 billion loss in the…

North Korea Says Latest Spy Satellite Launch Failed, Will Try Again

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SEOUL/TOKYO —  North Korea’s second attempt to place a spy satellite in orbit failed on Thursday after the rocket booster experienced a problem during its third stage, state media reported, as space authorities vowed to try again in October. Its first try in May also ended in failure when the new Chollima-1 rocket crashed into the sea. The predawn launch came in the first hours of an eight-day window that North Korea had given for the attempt. The nuclear-armed country has been seeking to place what would be its first…

US seeks to extend longstanding scientific research agreement with China

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The US is seeking a six-month extension to a decades-old science and technology agreement with China so that it can undergo negotiations with Beijing to “strengthen” the pact, the state department has said. The landmark deal, signed when Beijing and Washington established diplomatic ties in 1979 and renewed about every five years since, has led to the geopolitical rivals cooperating across a range of scientific and technical fields. But concerns about China’s growing military prowess and theft of US scientific and commercial achievements have prompted questions in Washington about whether…

Taiwan arms boost: US approves US$500 million in F-16 sensor systems for island’s defence

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The US government has approved a half-billion-dollar sale of advanced sensor systems for F-16 fighter jets to Taiwan to boost the self-governing island’s ability to defend against “threats”, according to a State Department statement on Wednesday. The deal includes F-16 infrared search-and-track systems and related equipment at an estimated cost of US$500 million, according to the statement. Congress was officially notified of the sale on Wednesday, it added. Built by US aerospace company Lockheed Martin, the equipment would improve Taiwan’s defence of its airspace and deepen interoperability with the US…

US Seeks to Extend Science, Tech Agreement With China for 6 Months

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State Department —  The U.S. State Department, in coordination with other agencies from President Joe Biden’s administration, is seeking a six-month extension of the U.S.-China Science and Technology Agreement (STA) that is due to expire on August 27. The short-term extension comes as several Republican congressional members voiced concerns that China has previously leveraged the agreement to advance its military objectives and may continue to do so. The State Department said the brief extension will keep the STA in force while the United States negotiates with China to amend and…

US-China relations: Gina Raimondo’s ‘reality check’ in China seen paving way for Xi-Biden meeting as tensions persist

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US Commerce Secretary Gina Raimondo’s visit to China will set the stage for top-level leadership meetings and serve as a “reality check” on American business in China’s struggling economy, according to Chinese analysts. Raimondo’s trip, from Sunday to Wednesday, would make her the latest US official dispatched to China since June, in a sign that stalled high-level visits between the world’s largest economies are resuming amid growing tensions stemming from geopolitical wrangling. Geopolitical experts also see her visit as another step toward a meeting between presidents Xi Jinping and Joe…