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May 25, 2023
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What to Look for in the Aftermath of the G-7 Summit

The Group of Seven summit in Hiroshima ended with a strong joint statement underlining the sense of unity among the world’s most prosperous democracies on maintaining the international liberal order amid growing challenges from China and Russia. I reached out to Yuko Nakano, Japan chair at the Center for Strategic and International Studies, via email with a few questions about what to watch next regarding the Biden administration’s strategy in the Indo-Pacific, lightly edited and condensed for clarity below.

 

Matthew Kendrick: Folks reading headlines from the G-7 might be surprised to see Biden so optimistic about a thaw with China after Beijing reacted quite vigorously to the summit, particularly the language around Taiwan. Can you help us square that contrast a bit? Is there scope for de-escalation?

 

Yuko Nakano: The leaders’ communiqué encompasses firm language regarding China, covering issues such as economic coercion, Taiwan and human rights abuses. At the same time, the U.S. and others seem to be signaling that it’s also important to maintain open communication, keeping engaged with China. In fact, leaders, including President Biden and other U.S. government officials, have been adopting the term “de-risking” instead of “decoupling” to describe their approach toward China.

 

We have seen some efforts to re-engage, including the upcoming meeting between China’s Commerce Minister Wang Wentao and U.S. Commerce Secretary Raimondo and U.S. Trade Representative Tai in Washington this week – all necessary groundwork leading up to a potential principal meeting between President Biden and President Xi.

 

MK: Biden invited Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk-yeol to join him in Washington for another trilateral meeting, after their meeting in Hiroshima seemed to go well by all three sides’ accounts but didn’t produce any concrete agreements. What should we be looking for in the run up to the Washington summit, particularly in terms of missile and nuclear security?

 

YN: In the context of the bilateral relationship between South Korea and Japan, the Korean government began the process of restoring the General Security of Military Information Agreement, which enables the two countries to share military intelligence. This development holds importance within the context of trilateral cooperation as the three governments have been negotiating an agreement on sharing real-time data on North Korean missile launches.

 

Additionally, down the line, they are also expected to expand cooperation in bolstering supply chain resilience and other areas in the Indo-Pacific region.

 

MK: Kishida and Biden of course did not get to have their Quad summit in Australia due to the debt ceiling negotiations here in the United States, and some commentators are arguing this cancellation shakes allied confidence. Do you think Tokyo is concerned at all by its most important ally’s struggles to fund its own spending?

 

YN: While Tokyo does keep domestic developments in mind, it does not overshadow their overall thinking. U.S. presidents, including Mr. Biden, have shown confidence and understanding towards their Japanese counterparts when they faced political hurdles at home, and kept their focus on the shared strategic visions and what they can achieve together. I am sure Mr. Kishida is doing the same.

 

Although President Biden had to cancel the second leg of his Asia trip, and some argue that it was a missed opportunity, what matters now is how the United States will build upon the efforts already set forth by the Biden Administration. I believe the United States will continue to vigorously engage with its allies and partners, demonstrating its commitment to fostering a strong, stable, and prosperous Indo-Pacific region.

 

And here are today’s top stories:

 

House Speaker Kevin McCarthy (R-Calif.) reportedly told Republican lawmakers behind closed doors that negotiations with the White House over raising the debt ceiling are “nowhere close” to producing an agreement with just over one week remaining before a potential debt default. Any deal would likely need to be struck several days before the early June deadline in order to give Congress time to pass the legislation, meaning a default is still possible even if a major breakthrough occurs soon. (Financial Times)

 

Pakistan’s government is considering banning former Prime Minister Imran Khan’s Tehreek-e-Insaf party, alleging that it attacked the state during mass uprisings in protest to Khan’s arrest on May 9. The decision is likely to enrage supporters and may itself lead to violence. (Reuters)

 

Israel’s top general said Iran’s uranium enrichment activities could precipitate an Israeli military response after the Associated Press reported that Iran was building a new underground enrichment site in the Zagros mountains. (Reuters) Iran maintains that its nuclear program is peaceful and said it would cooperate with the International Atomic Energy Agency on any “new activities” following the publication of the report. (The Associated Press)

 

Mexican President Andres Manuel Lopez Obrador admitted that he knew his own top human rights official was being spied on but said he told the official not to worry about it. It is not clear who is responsible for installing Pegasus spyware on the official’s phone, but the only entity in Mexico that has access to the Israeli-made software is its military, which the official was investigating at the time. (The New York Times)

 

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What Else You Need To Know

Multilateral
 

UN: World is failing to protect millions of civilians caught in conflicts

Edith M. Lederer, The Associated Press

The U.N. chief on Tuesday decried the “terrible truth” that the world is failing to live up to its commitments to protect a growing number of civilians caught in conflicts. The International Committee of the Red Cross, the guardian of treaties enshrining those commitments, lamented that countless civilians are experiencing “a living hell.”

 

US, EU lawmakers push to depose UAE’s Jaber from climate talks

Gloria Dickie and Kate Abnett, Reuters 

Over 100 members of the U.S. Congress and European Parliament called on Tuesday for Sultan al-Jaber to be removed as the designated head of the upcoming COP28 climate talks, saying the oil exec’s appointment threatened the integrity of negotiations.

 
Asia-Pacific
 

Cambodia’s Hun Sen Tells Countries to Stay Silent on Election Process

Luke Hunt, The Diplomat 

More revolutionary plots are alleged ahead of the July 23 poll.

 

South Korea asks US to review China rule for chip subsidies

Soo-Hyang Choi, Reuters 

South Korea has asked Washington to review its criteria for new semiconductor subsidies, concerned over the impact of rules to limit chip investment in countries such as China, a U.S. public filing showed.

 

Bangladesh PM confident country able to repay IMF loans

Andrew Mills, Reuters 

The Prime Minister of Bangladesh Sheikh Hasina said on Wednesday she was confident that the country would be able to meet its commitments to the International Monetary Fund.

 

Indian Prime Minister Modi strikes new agreements on migration and green hydrogen in Australia

Rod McGuirk and Rick Rycroft, The Associated Press

Indian Prime Minister Narendra Modi struck new agreements Wednesday with his Australian counterpart Anthony Albanese on migration and green hydrogen, while raising concerns about attacks on Hindu temples in Sydney.

 
Europe
 

EU claims it’s now on track to get Ukraine 1M ammo rounds

Jacopo Barigazzi, Politico

But doubts remain about whether it can keep up the pace.

 

U.S.-Made Armored Vehicles Appear to Have Been Used in Attack on Russia

Riley Mellen, The New York Times 

At least three of what appeared to be American-made tactical vehicles known as MRAPs were part of the cross-border attack. According to visual evidence, Russia captured two of them.

 

Russia says it shot down drones in border region after raid from Ukraine territory

Susie Blann, The Associated Press

Russian forces shot down “a large number” of drones in Russia’s southern Belgorod region, a local official said Wednesday, a day after Moscow announced that its forces crushed a cross-border raid in the area from Ukraine.

 

US aircraft carrier arrives in NATO-member Norway

The Associated Press

A U.S. aircraft carrier arrived Wednesday in Oslo with the Norwegian armed forces saying it gives them “a unique opportunity to further develop cooperation and work more closely with our most important ally, the United States.”

 

EU sticks with post-Brexit clearing trade deadline despite objections

Sam Fleming and Jim Pickard, Financial Times 

Brussels insists on wresting lucrative business from London as derivatives houses fear threat to stability.

 

It Just Had an Energy Crisis, Now Europe Faces a Food Shock

Paul Hannon, The Wall Street Journal

Food prices continue to rise at a rapid pace, surprising central banks and pressuring debt-laden governments.

 

AfD: Germany intensifies scrutiny of far-right party, labeling its youth wing ‘extremist’

Nadine Schmidt and Sophie Tanno, CNN 

Germany’s domestic intelligence agency, the Federal Office for the Protection of the Constitution (BfV), in April labeled the group as “extremist” after four years of investigation.

 

Big drop in German exports to China raises fears over EU’s economic powerhouse

Martin Arnold and Patricia Nilsson, Financial Times 

Decrease in demand from Asia’s largest economy sparks concern over how Berlin can fix industrial malaise.

 
Latin America
 

As Protesters Die, Peru’s Security Forces Face Little Scrutiny 

Mitra Taj, The New York Times 

In Peru, investigations into the killing of protesters by security forces are often closed without any charges, undermining people’s faith in their government.

 

Mexico’s López Obrador Considers Bidding for Citi’s Local Bank Unit

Anthony Harrup and Juan Montes, The Wall Street Journal

The nationalist president said his administration is analyzing making an offer for Banamex if local bid falls through.

 

Uruguayans pray for rain as capital reservoir left with 10 days of water

Lucinda Elliott, Reuters 

Uruguayans in the capital Montevideo are praying for rain amid a historic drought that has left the main reservoir for the city with only ten days of water left.

 

Ecuador election council sets presidential vote for Aug. 20

The Associated Press

Ecuador’s National Electoral Council announced on Tuesday that early presidential elections would be held on Aug. 20 after President Guillermo Lasso dissolved the National Assembly by decree last week and brought forward the vote scheduled for 2025.

 

US reluctance on trade deals sends Latin America towards China
Michael Stott, Financial Times 

Beijing’s offer of commerce and investment wins more friends than the good intentions of Washington and the EU.

 
Middle East and Africa
 

Turkish anti-migrant party backs Erdogan’s rival in presidential runoff

The Associated Press

A hard-line, anti-migrant party on Wednesday threw its weight behind the opposition candidate who is running against Turkish President Recep Tayyip Erdogan in this weekend’s runoff presidential race.

 

Israel’s Netanyahu and allies pass new budget with sweeping grants for settlements, ultra-Orthodox

Ilan Ben Zion, The Associated Press

Prime Minister Benjamin Netanyahu’s government on Wednesday passed a new two-year budget, a step that could bring some stability to his coalition and clear the way for it to press ahead with its religious, pro-settlement agenda.

 

Chinese hackers attacked Kenyan government as debt strains grew

Aaron Ross et al., Reuters 

Chinese hackers targeted Kenya’s government in a widespread, years-long series of digital intrusions against key ministries and state institutions, according to three sources, cybersecurity research reports and Reuters’ own analysis of technical data related to the hackings.

 

Congo files new complaint to ICC against Rwanda’s military and M23 rebels

Ange Kasongo and Stephanie Van Den Berg, Reuters 

Democratic Republic of Congo on Tuesday made another formal referral to the International Criminal Court (ICC) to ensure the court will focus on what it calls the systematic pillaging of its natural resources in eastern Congo by the Rwanda Defence Forces (RDF) and the M23 rebel group.

 

Trial for Senegal’s main opposition leader ends, verdict expected next week

Babacar Dione, The Associated Press

A highly-anticipated trial of Senegal’s main opposition leader ended Tuesday evening with a verdict expected next week, a court said Wednesday.

 

U.S. Navy Steps Up Efforts to Curb Iran’s Ship Seizures in Strait of Hormuz

Eric Lipton, The New York Times 

The United States is increasing patrols in the busy shipping lanes, where Iranian forces have taken two internationally flagged tankers in recent weeks.

 
North America
 

White House believes up to 100 Dem votes needed on debt ceiling deal
Adam Cancryn and Jennifer Haberkorn, Politico 

The prospect of needing so many votes from within the party has begun to color Biden’s negotiating strategy.

 

Biden to host Danish Prime Minister Frederiksen for White House talks next month

The Associated Press

President Joe Biden will host Prime Minister Mette Frederiksen of Denmark at the White House next month for talks on their joint efforts including supporting Ukraine.

 







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