NUNZIUM

News That Matters

15/12/2023 ---- 19/12/2023

The landscape of global power is in constant flux, with recent developments in US-China relations and China's escalating global influence being particularly significant. In November, US President Joe Biden disclosed that he and his Chinese counterpart, Xi Jinping, had agreed to reestablish direct communication lines between their respective military commanders. Announced on November 16th at a news conference, this agreement was hailed as a significant breakthrough, hinting at a possible détente in the icy relations between the two superpowers.

Despite this positive development, the situation remains complex. Despite multiple attempts by US defense officials to initiate communication, no responses have been received from their Chinese counterparts, sparking concerns about potential misunderstandings and mishaps arising from this communication gap. The situation is further complicated by the recent dismissal of China's defense minister, Li Shangfu, in October, with no successor announced yet. Regardless of these hurdles, US officials remain optimistic about the possibility of maritime safety talks in the coming year.

The strained relations between the US and China aren't confined to military communications. Chinese media has lambasted the US for its ongoing arms sales to Taiwan, arguing that it erodes mutual trust and impedes the recovery of military relations. In retaliation, a Defense Department spokesperson underscored the importance of military communication with China, asserting that open lines of communication are crucial to prevent competition from escalating into conflict.

Simultaneously, China is stepping up its diplomatic engagement with the European Union (EU). The first face-to-face meeting between Xi Jinping and EU leaders in four years recently took place in Beijing, addressing a range of contentious issues, including human rights, Beijing's ties with Russia, and China's claim over Taiwan. Despite disagreements over trade and differing views on the Ukraine war, both sides expressed a desire for reduced trade barriers and enhanced cooperation.

China's growing global influence isn't limited to diplomatic interactions. Chinese warships recently docked at Cambodia’s Ream Naval Base for the first time, signaling a significant expansion in China's overseas military presence. This move has elicited concerns from the United States, which interprets it as a part of China's wider strategy to disrupt the US's global military operations.

Cambodian officials have dismissed these concerns, asserting that the facility would not be used as a Chinese naval base. Chinese officials have similarly downplayed the move, referring to the base as an “aid project” aimed at bolstering Cambodia’s navy. Nevertheless, the US Defense Department's assessment of China's involvement in the refurbishment of Cambodia’s Ream Naval Base has evolved over the past year, suggesting the potential for the People's Liberation Army to gain access to parts of the base.

As these events unfold, it's evident that the shifting dynamics of global power are presenting new challenges and opportunities. The US, China, and the rest of the world must carefully navigate these complex currents. The decisions made today will undeniably shape the world of tomorrow. The importance of open communication and mutual respect in international relations is paramount. Only through dialogue and understanding can we hope to prevent competition from escalating into conflict, ensuring a peaceful future for all.

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The Red Sea, a crucial global trade route, has emerged as the newest geopolitical hotspot due to persistent attacks by the Iran-aligned Houthi group based in Yemen. In response, the US and its allies are considering the establishment of a multinational task force to ensure safe passage in this region, which sees over six million barrels of oil pass through daily, primarily to Europe.

US National Security Advisor, Jake Sullivan, confirmed that discussions are ongoing with other nations to form a "maritime task force". The proposed 12-nation coalition would include warships from the US, France, the UK, and Israel, potentially increasing the number of warships and enabling attacks on Houthi targets within Yemen.

The Houthis have been targeting vessels in the strategic Bab el-Mandeb Strait, the world's third-largest choke point for oil shipments. Their retaliation to Israel's bombardment of Gaza escalated with the capture of the Galaxy Leader in November, and subsequent rocket and drone attacks on commercial and naval vessels. This has prompted an increased presence of American and French navies in the Red Sea to safeguard against Houthi attacks.

The Houthi group's history of attacking Red Sea vessels, including the Al Madinah frigate in 2017 and two Saudi oil tankers in 2018, has led the US to contemplate designating the group as a "terror organization". The recent attacks have caused significant disruptions, including fires on the Liberia-flagged vessels Al-Jasrah and MSC Palatium III. Consequently, shipping companies Maersk and Hapag-Lloyd have suspended all journeys through the Red Sea.

The Houthis, who have claimed responsibility for firing missiles at two ships, have stated their intent to target any ship travelling to Israel, irrespective of its nationality. This is viewed as a pressure tactic against Israel during its offensive on Gaza, which has resulted in over 18,700 fatalities in the two-month-old war against Hamas.

The escalating situation has also led to a surge in insurance costs for ships transiting the area, with increases amounting to tens of thousands of dollars for larger vessels like oil tankers. The rebels have attempted to hijack and capture several ships, succeeding at least once in November, and typically order them to surrender and head to a Yemeni port, opening fire if they do not comply.

As the tensions continue to rise, US, French, and British warships patrol the area, shooting several missiles out of the sky. While the Houthis are the ones pulling the trigger, as Sullivan puts it, they're being handed the gun by Iran. As the world watches this evolving situation, it's clear that the Red Sea has become a high-stakes geopolitical chessboard.

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The unity of the European Union (EU) has recently been put to the test as Hungary, under Prime Minister Viktor Orbán, blocks a proposed €50 billion aid package to Ukraine, referred to as the 'Ukraine Facility'. This comes at a time when Ukraine is dealing with a budget deficit of €39.46 billion in 2024 and daily costs of €124 million related to ongoing conflict. Despite support from 26 EU member countries, Orbán's refusal, citing high levels of corruption in Ukraine and advocating for peace with Russia, has led to an impasse, forcing EU leaders to defer the decision to an extraordinary summit anticipated in January.

The 'Ukraine Facility' is part of a larger €100-billion revision of the EU's long-term budget, the Multiannual Financial Framework (MFF), intended to assist Ukraine through 2027. The package comprises €33 billion in low-interest loans and €17 billion in non-repayable grants. This financial deadlock is particularly critical for Ukraine, heavily reliant on international funding. In November 2022, the EU had approved an €18-billion support package for Ukraine, notwithstanding Orbán's objections. Furthermore, EU’s top diplomat Josep Borrell has proposed enhancing support to Ukraine by an additional €20 billion over the next four years via the European Peace Facility (EPF).

On the other side of the Atlantic, Ukraine's President, Volodymyr Zelenskyy, was unsuccessful in securing more aid from Washington due to Republicans' demand for stricter immigration reforms across the southern US border. Despite this setback, Zelenskyy reported receiving "positive signals" from lawmakers.

In a bid to circumvent Hungary's veto, EU leaders have initiated negotiations on Ukraine and Moldova’s accession to the bloc. However, this symbolic gesture doesn't promise immediate relief for Ukraine, given that the process of joining the EU, involving comprehensive reforms from rule of law to the economy, can span years.

Adding another layer of complexity to the situation is Russian President Vladimir Putin's first campaign speech promising to make Russia a "sovereign, self-sufficient" power against the West. This stance, ahead of an election likely to extend his rule until at least 2030, underscores Russia's intent to distance itself from foreign influence.

Despite the ongoing stalemate over the financial package to Ukraine, the EU leaders have shown their commitment to support Ukraine by opening membership talks with Ukraine and Moldova. This move, in defiance of Hungary's opposition, signals unity and support. As the EU leaders reconvene in January, the world will watch to see if they can resolve the deadlock and provide the much-needed assistance to Ukraine.

The resolution of this stalemate will not only impact Ukraine, but will also have significant implications for the EU's credibility and unity. Amid the political negotiations, the people of Ukraine continue to suffer the consequences of the conflict, awaiting the EU's decision in January with bated breath.

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In 2023, the world witnessed a significant shift towards clean energy, marking a new era of climate action. This was driven by substantial investments in clean energy, legislative changes, and a landmark agreement at the 28th Conference of the Parties (COP28).

The United States led the way with the Inflation Reduction Act of 2022, which allocated a record $369bn to initiatives aimed at reducing greenhouse gas emissions and promoting electrification. This unprecedented investment sparked over $110bn in new clean energy manufacturing investments from the private sector.

In Europe, the EU banned imports of commodities linked to deforestation in June 2023, leading to a sharp decline in the Amazon rainforest's deforestation rate. This followed Brazil's commitment to end deforestation by 2030. Additionally, legal pathways were established for individuals to sue plastic manufacturers for damages, a significant development considering the plastics industry’s 3.3% contribution to global greenhouse gas emissions.

The COP28, held in Dubai, was a key event. World leaders agreed to establish a fund to address climate change-related loss and damage, meeting a $100bn annual pledge to affected countries for the first time. The agreement also included a commitment to transition away from fossil fuels, a first in UN climate negotiations’ 30-year history. Despite criticisms regarding the lack of quantified objectives and ambiguity surrounding the term "transition", the consensus deal was generally welcomed.

The COP28 climate summit concluded on December 13, 2023, with a final deal signaling the beginning of the end of the fossil fuel era. It called for a tripling of global renewable energy capacity by 2030 and an acceleration of efforts to reduce coal usage through technologies like carbon capture and storage. However, challenges persist, with some developing nations and major oil producers resisting a fossil-fuel phaseout.

Nevertheless, 2023 marked a turning point in the fight against climate change. From the largest dam removal project in American history on the Klamath River to the passing of the High Seas Treaty to protect the world's oceans, the world took unprecedented steps towards a cleaner, more sustainable future. As the year drew to a close, the momentum towards this future was clearly gathering pace, indicating a stronger commitment to change than ever before.

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