The World This Week

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CWA # 1377, 30 June 2024
The World This Week
International Tariffs on Chinese EVs and China’s Fourth Icebreaker

  GP Team

The World This Week #269, Vol. 6 No. 23, 30 June 2024

Sayeka Ghosh, Vetriselvi Baskaran and Shilpa Joseph

International Tariffs on Chinese EVs
Sayeka Ghosh

What happened?
On 24 June, Canadian Finance Minister Chrystia Freeland announced a 30-day public consultation period starting 2 July to consider imposing tariffs on Chinese-made electric vehicles (EVs). It will explore potential policy responses, including a surtax on Chinese EV imports, changes to the federal Incentives for Zero-Emission Vehicles program, and broader investment restrictions. 

Earlier, on 12 June, the European Union (EU) announced additional tariffs of up to 38.1 per cent on EVs imported from China. These tariffs, ranging from 17.4 per cent to 38.1 per cent, will be added to the existing 10 per cent import duty, specifically on pure-electric cars from mainland China. The new levies are set to take effect on 4 July provisionally. Shanghai Automotive Industry Corporation (SAIC) faces the highest tariff at 38.1 per cent, while other companies like Geely and BYD will be subject to levies of up to 21 per cent. In May 2024, the United States quadrupled tariffs on Chinese EVs to 100 per cent, up from the previous 25 per cent. This significant increase was part of a broader strategy to address perceived unfair competition from Chinese manufacturers.

What is the background?
First, China's rapid growth in EV production and exports. China produced over 9 million EVs, accounting for nearly 60 per cent of global EV production in 2023. In Canada, automobile imports from China jumped 460 per cent annually in 2023 at Vancouver's port, largely due to Tesla shipping Shanghai-made EVs. The EU saw Chinese pure-electric cars capture a fifth of its EV market in 2023. In the US, while Chinese EV imports remain relatively low, there are concerns about potential future market penetration.

Second, international apprehensions and responses on Chinese government subsidies and unfair practices. Canada fears that Chinese producers intentionally generate global oversupply, undermining EV producers worldwide. The EU's nine-month anti-subsidy investigation concluded that the Chinese EV supply chain benefits heavily from government support, creating an uneven playing field. The investigation found that Chinese EVs sold in Europe were up to 50 per cent cheaper than EU-made models. The US is concerned about Chinese state support; a report by the Center for Strategic and International Studies estimates that Chinese EV makers received around USD 57 billion in government support between 2016 and 2022. South Korea imposes a 10 per cent tariff on imported EVs, which applies to Chinese manufacturers. This tariff is part of South Korea's strategy to protect its domestic auto industry, which includes major players like Hyundai and Kia. Japan maintains a 0 per cent tariff on EVs but has strict safety and quality standards that can act as non-tariff barriers. These standards have effectively limited Chinese EV imports, with Japanese brands dominating the domestic market. India imposes a 100 per cent import duty on EVs priced above USD 40,000 and 70 per cent on those below that threshold, effectively limiting Chinese EV imports. This high tariff is part of India's strategy to promote domestic EV manufacturing under its “Make in India” initiative. These measures reflect global concerns about China's growing dominance in the EV market and the potential impact on domestic industries.

What does it mean?
First, for the Canadian automotive sector, which supports nearly 550,000 jobs, the potential tariffs could provide short-term protection for domestic manufacturers and workers. However, it may also lead to higher EV prices for consumers and possible retaliation from China, affecting other Canadian exports. The consultation period will be crucial in determining the balance between industry protection and maintaining competitive EV prices. Canadian auto industry representatives, including Flavio Volpe of the Automotive Parts Manufacturers' Association, have welcomed the government's move, citing the need to protect domestic manufacturing capabilities.

Second, the EU tariffs are expected to impact Chinese carmakers' short-term competitiveness. However, analysts believe that Chinese EVs may remain competitive despite the additional duties due to their superior price-to-performance ratio and cost advantages. European carmakers may gain a slight advantage in the near term, but those who assemble pure-electric cars in China could face challenges exporting to the EU market. The European Automobile Manufacturers' Association (ACEA) has expressed concerns about potential retaliation from China, which could affect European brands heavily dependent on the Chinese market.

Third, the US blocking most Chinese EV imports with a 100 per cent tariff may protect domestic manufacturers but may limit consumer choice. It may potentially slow the adoption of EVs if it leads to higher prices. US automakers may benefit from reduced competition, but they also face the challenge of rapidly scaling up their own EV production to meet demand. The American Automotive Policy Council has supported the tariffs, arguing they level the playing field for US manufacturers.

Ji Di: China’s fourth Icebreaker 
Vetriselvi Baskaran 

What happened?
On 24 June, China’s Ministry of Natural Resources in Guangzhou’s Nansha district delivered the fourth polar research icebreaker named Jidi, meaning the polar region. Designed and built by the CSSC Offshore & Marine Engineering Company, Ji Di intends to support research and replenish supplies for China’s stations in the North and South Poles.

Cai Ruimou, Jidi’s chief designer stated: “The significance of the completion of the construction of the Jidi icebreaker research vessel is that our country has completely systematised the research system of the entire ice zone, that is, including the North and South Poles.”

What is the background?
First, a brief note on China’s fourth icebreaker Jidi. The next-generation icebreaker has a displacement of 5,600 tonnes and measures, 17.8 metres wide and 89 metres long. It has a range of 26,000 kilometres, with a crew capacity of up to 60 people for 80 days. In addition, it can carry drones, unmanned ships, underwater autonomous robots and other equipment used in deep polar seabed exploration. The vessel is tasked to conduct polar and deep-sea surveys in summer months and it would further aid China’s marine disaster prevention and mitigation capabilities. 

Second, a brief note on China’s icebreakers. The first one - Xuelong 1 was purchased from Ukraine. Shanghai’s Hudong-Zhonghua Shipbuilding firm converted it into a cargo ship for polar research in 1993. The second one - Xuelong 2’s construction began in 2016 at the Jiangnan Shipyard in Shanghai and this vessel is China’s first domestically-built polar research icebreaker. It became operational in 2019. It is capable of breaking 1.5-metre-thick ice at a continuous speed of two to three knots. Both are used by China to replenish supplies for the nation’s seven stations at the north and south poles. The third research vessel, yet to be named is under construction and is expected to be delivered by 2025. Ji Di is the fourth one. 

Third, China’s “polar great power” aim. China started using the phrase to showcase the significance of the polar regions to China’s national interests. In 2014, Chinese President Xi Jinping mentioned the aim of “polar great power” by 2030. China so far conducted 40 scientific expeditions in the Antarctic since 1984 and 12 in the Arctic since 1999. Its White Paper on the Polar Silk Road refers to China’s ambitions to develop Arctic shipping routes reducing distances for global trade between Asia and Europe. It is also investing in infrastructure projects like having a major stake in Russia’s Yamal LNG project. Chinese state-owned shipyards like Hudong-Zhonghua have debuted new designs for ice-capable liquefied natural gas (LNG) carriers that can operate in Arctic conditions. It is also aimed at accessing Arctic resources like oil, gas and mineral resources. 

Fourth, China’s polar research programme. It has been active since the 1990s when it established the Arctic regional research program. The Polar Research Institute of China (PRC) headquartered in is the centre which manages all the data collected by Arctic and Antarctic programs. In 2003, China established its first research station in the Arctic and it has been conducting annual research cruises to the Arctic Ocean. China’s Antarctic research program began in 1984 following the formation of the Chinese National Antarctic Research Expedition (CHINARE). 

What does it mean?
China’s interest in the Arctic and Antarctic region has increased since the early 2000s. It showcases its presence in several factors including the advanced development of polar technology like icebreakers. It began building icebreakers in 1993. In 30 years, it has built four icebreakers, three of which were domestically built. China's polar research expeditions have increased from a two-year cycle to an annual frequency since 2017.  

China’s Polar Vessels: A Profile
Shilpa Joseph

Xuelong 1
In 1993, China acquired its first icebreaker from Kherson Shipyard in Ukraine. Referred to as Snow Dragon, it was meant to be an icebreaking supply and cargo ship. In 1994, Shanghai’s Hudong Zhonghua shipbuilding firm converted the cargo vessel into a polar research support vessel, further rebuilding the superstructure and pilothouse in 2007 and improving its main engines in 2013. The 167-meter-long ship was large enough to accommodate 128 scientists and crew and remains the largest non-nuclear-powered icebreaker in the world. 

It can cut through 1.1 meters of ice and belongs to the B1 level of classification. However, it does not cater to the energy required to propel the huge weight of the ship and remains underpowered with just 13. 2 megawatts. Since its original design was serving as an ice-class cargo ship with a single shaft and controllable pitch propeller, its icebreaking efficiency is limited. The ship, however, possesses other features such as self-contained navigation, a data processing centre, three operating boats and one helicopter, and seven laboratories with a freezer for storage of samples and a low-temperature cultivation room. 

Xuelong-2
The second polar icebreaker vessel of China was launched on 10 September 2018 and became China’s first domestically built polar research ship. According to the International Association of Classification Societies (IACS), this ship comes under the PC 3 category. The rules define seven Polar Classes with PC 1 for year-round operation in all polar waters and PC 7 for operation in thin first-year ice during the summer and fall. Xuelong 2 was built for two purposes namely, as a logistics supply vessel and as a research ship. 

Xuelong-2 was constructed by Finnish Marine Technology with the Finland-based Aker Arctic firm contributing to the concept and basic design phases. The second ship has an improved energy capacity of 15 megawatts and better manoeuvrability with the help of two fixed-pitch propellers on a steerable pod. The ship possesses dual acting role in breaking up to 1.5 meter thick ice by moving both ahead and astern, thereby serving better as an icebreaker than Xuelong 1. Other features include two helicopters, wet and dry laboratories, multiple cranes, large cargo spaces and an additional facility to lower scientific instruments during difficult operations called a Moon Pool. 

Zhong Shan Da Xue Ji Di
The third Chinese icebreaker ship is expected to enter service in 2025. The ship was named the polar icebreaker of Sun Yat-Sen University after it purchased the ship in 2021. It was constructed in the 1980s as an icebreaking anchor-handling tug supply vessel (AHTS) for BeauDrill, a drilling subsidiary of Gulf Canada Resources. The ship, although more than 40 years old was modified to include special capabilities like low-temperature navigation and ship-borne scientific research facilities to make it a polar icebreaker vessel. The ship went on a trial exploration in February 2023, across four seas starting from the South China Sea and arriving in Liaodong Bay through the Yellow Sea. This verified its long-range operation capability and additionally, as the ship is more agile due to a much lesser tonnage, it comes under the Polar Class-4 classification. 

TWTW Regional Roundups

News from around the world
Rohini Reenum, Akriti Sharma, Padmashree Anandhan, Femy Francis, Dhriti Mukherjee, Akhil Ajith, Sayeka Ghosh, Mugdha Chaturvedi, Ayan Datta, Vetriselvi Baskaran, Neha Teresa George, Sanjay Manivanan, Ken B Varghese

CHINA THIS WEEK
China: Washington set to welcome Pandas from Beijing after 20 years
On 27 June, the South China Morning Post reported for the first time in 20 years, that two giant Pandas will fly to the US from China. The five-year-old male Panda, Yun Chuan, and the four-year-old female Panda, Xin Bao will be arriving at the San Diego Zoo this week. The Pandas will be accompanied by their caretakers. The zoo authorities have said that once the Pandas arrive safely, they will be given time to acclimatise to their new home, and the public won't be allowed to see them until the wildlife health and care teams give their confirmation. The zoo welcomed its first Chinese panda in 1996, with no new arrivals for the next two decades.

China: Vietnam-China Summit strengthens ties for shared prosperity
On 26 June, Chinese President Xi Jinping met Vietnamese Prime Minister Pham Minh Chinh in Beijing. Xi said that the initiative of the China-Vietnam Community with a shared future that they had agreed on during his visit to Vietnam has progressed well. He praised their bilateral relations and mentioned the resilience and strength of the socialist system of the two countries. Xi mentioned the need for this initiative to achieve the modernisation needs of both sides for regional stability and for promoting the development of the global socialist cause. Both sides discussed cooperation opportunities in economic and trade, interconnectivity, and the digital economy. Xi also expressed hope for a fair, just, and non-discriminatory business environment for Chinese companies. Chinh expressed Vietnam’s support towards China’s global initiatives and supported Beijing’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

China: Extends visa-free entry for 11 European countries till 2025
On 25 June, Euro News reported visa-free entry by China for 11 European countries till the end of 2025. The countries include Austria, Belgium, France, Germany, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Spain and Switzerland. Citizens from these countries are allowed to enter China without a visa. The Ministry of Foreign Affairs spokesperson Mao Ning said: “to facilitate the high-quality development of Chinese and foreign personnel exchanges and high-level opening up to the outside world.” The visa-free entry will be granted for up to 15 days.

China: Chang’e-6 lunar probe returns to Earth with Graphene sample
On 25 June, China’s Chang’e-6 lunar probe landed back on Earth in the Inner Mongolia desert. The mission lasted two months and was tasked to land and retrieve lunar samples from the far side. The Moon’s far side was challenging for the lunar probe due to its distance and the difficult terrain for the probe to navigate around huge craters. According to the South China Morning Post, Chinese scientists discovered Graphene, a pure form of carbon. The discovery could challenge the formation of the Moon, which is commonly understood to have been formed in a collision between the Earth and another small planet. The theory was supported by the US Apollo 17 mission samples.  Japanese scientists also challenged moons’ formation based on the presence of emission fluxes of carbon on the lunar surface. After studying, Chinese scientists concluded the potential of the lunar surface possessing a capturing process, leading to the formation of the Graphene sample. In 2010, NASA scientists found from the previous Apollo sample that graphite was formed by the impact of meteor strikes on the Moon and not solar winds. Chinese scientists noted the important role of natural Graphene in planetary and space science. The scientists compared the sample with the sample from Chang’e-5 mission to understand its structure and its formation.

China: Inducts fourth polar research icebreaker “Jidi”
On 24 June, China’s Ministry of Natural Resources in Guangzhou’s Nansha district inducted the fourth polar research icebreaker named “Jidi,” which translates to the polar region. It was designed and built by the China State Shipbuilding Corporation Limited (CSSC) and Marine Engineering Company. The ship was intended to support research and replenish supplies for China’s seven North and South Pole stations. Jidi has a displacement of 5,600 tonnes and is 17.8 metres wide and 89 metres long. It has a range of 26,000 km and can carry up to 60 crew for 80 days. Jidi’s chief designer Cai Ruimou said that the ship could conduct its operations and break the ice in the Yellow and Bohai Seas during winter. The ship is designed to conduct polar and deep-sea surveys during summer and other research, such as gathering data on atmospheric, geophysics, and sea ice.

EAST ASIA THIS WEEK
Japan: Yen reaches an all-time low compared to the dollar
On 27 June, Japan’s yen hit the lowest value compared to the dollar since 1986. In a press conference the Japanese Finance Minister, Shunichi Suzuki told the reporters: “Japan will take appropriate actions to defend its currency.” He added: “Sudden one-sided moves are not desirable. We are strongly concerned about its impact on the economy and will analyze the background to this move with a high sense of urgency.” The Japanese yen has reached 160.87 per dollar, the lowest compared to the exchange rates in the past. The yen traded at 160.45 per dollar in the mid-morning dealings in Tokyo. 

Japan: To conduct Air defence drills with Germany, France and Spain
On 25 June, over 30 military aircraft from Germany, France, and Spain will conduct joint exercises with Japan's Air Self-Defense Force in July, marking their first trilateral air force deployment to the Indo-Pacific. This initiative is part of the Pacific Skies deployment and aims to enhance tactical skills and foster mutual understanding among participating nations. Japanese Defense Minister Minoru Kihara emphasised that these exercises: “Not only improve the Self-Defense Forces' tactical skills but also deepen cooperation with other countries and help realize a free and open Indo-Pacific region.” The drills highlight growing defence ties between Japan and European partners driven by shared economic and security concerns. European nations are intensifying their engagement in the Indo-Pacific and recognising the region's strategic importance for global stability. 

South Korea: Aid to Ukraine not same as North Korea’s to Russia, says NATO Chief
On 28 June, NATO Chief Jens Stoltenberg differentiated between South Korea's potential arms support for Ukraine and North Korea's suspected munitions delivery to Russia, emphasising the illegality of Russia's invasion. He welcomed any significant South Korean aid to Ukraine, noting that global security issues are interconnected. South Korea's National Security Advisor Chang Ho-jin suggested that weapon supplies to Ukraine could be considered, depending on Moscow's actions. South Korea's decision to send non-lethal aid to Ukraine previously had already strained relations with Russia to their lowest point. 

Australia: Julian Assange reunites with his family in Canberra, reports BBC
On 27 June, BBC reported that Julian Assange had landed back in Australia after a plea deal that allowed him to walk free from a London prison. For the past 14 years, he has been in a legal battle with the US authorities who accused him of leaking classified documents that have put lives in danger. A press conference was held at the Canberra airport where his wife, Stella Assange, and his lawyers spoke for him. The plea deal saw Julian Assange plead guilty to one charge of conspiracy to obtain and disclose national defence information, rather than the 18 he was originally facing. His lawyer, Jen Robinson told the media that the deal was a criminalisation of journalism and set a dangerous precedent. 

New Zealand: Halts emergency Database Project for disaster management amid budget cuts
On 26 June, the New Zealand government discontinued a prototype emergency database coordination system which was developed by Land Information New Zealand (LINZ) in 2021. This decision followed a budget review prompted by public sector cuts. Minister Chris Penk's office stated that this move: “Does not affect the government's ability to better prepare for and respond to emergencies.” The project, which cost USD 50,000 over three years, aimed to demonstrate how users could access geospatial datasets online from a single point. However, it was never intended to progress beyond the demonstration phase without dedicated funding. The Mateparae inquiry into Cyclone Gabrielle's response had recommended building a system for sharing a common operating picture among emergency responders. Despite the project's discontinuation, the government maintains its commitment to emergency management with over USD 1 billion allocated in the Budget for cyclone relief, resilience, and emergency preparedness.

SOUTH ASIA THIS WEEK
Maldives: Ministers arrested for “black magic” on president
On 27 June, The Indian Express reported that the Maldives police arrested four people, including a state minister at the Environment Ministry, Shamnaz Saleem, and a minister at the President's Office, Adam Rameez, over allegations of using black magic on President Mohamed Muizzu. The police have not provided details about the alleged incident. Subsequently, Shamnaz Saleem has been suspended from her role at the Environment Ministry and Adam Rameez has also been suspended from his position at the President's Office.

Nepal: BRI implementation deal delayed
On 26 June, the Kathmandu Post reported that the Belt and Road Initiative Implementation Plan between Nepal and China during Tuesday's 16th round of the Nepal-China diplomatic consultation mechanism meeting fell through. The deal was set to be signed during the visit of the Vice Foreign Minister Sun Weidong to Kathmandu. However, it was not signed. Prime Minister Pushpa Kamal Dahal, said in the Parliament that discussions were underway to finalise the BRI implementation plan. He added: “We are in the final stages of moving forward with it, and an agreement will soon be reached.”

Pakistan: IMF turns down grants and concessions on majority of the items
On 27 June, the International Monetary Fund (IMF) turned down the grant concessions on the majority of items proposed in the Finance Bill 2024- 25. The proposals agreed upon now relate to abolishing GST on textbooks, restoring rebates for professors/researchers, withdrawing Federal Excise Duty (FED) on cement, and some other technical changes. To reduce the FED charges on cement, the government had come up with enhanced FED on air tickets for international travel. In addition, the IMF also declined to agree on restoring export proceeds into an affixed income tax regime. Due to the disagreement with IMF, the government stumbled to adjust the fiscal policy of PKR 250 billion which was created through a reduction in the Public Sector Development Programme (PSDP). The government also asked for funds to withdraw GST on stationery items. However, the IMF only agreed to withdraw GST on textbooks and the other items might remain under 18 per cent. The Fund also refused to agree on the property and tax rates for salaried and non-salaried classes. It opposed the government’s move to withdraw the GST rate of 6 per cent for FATA. This means that there will only be minor changes in the Finance Bill proposed earlier.

Pakistan: Foreign Office spokesperson Mumtaz Zahra Baloch condemns US resolution on “rigged elections”
On 26 June, Foreign Office spokesperson Mumtaz Zahra Baloch gave a strong reply to the US House of Representatives resolution which demands an independent investigation into the alleged “rigged elections” held on 8 February. She stated: “Such resolutions are therefore neither constructive nor objective. We hope that the U.S Congress will play a supportive role in strengthening Pakistan-US ties and focus on avenues of mutual collaboration that benefit both our peoples and countries.” She also highlighted that Pakistan as the second largest parliamentary democracy and fifth-largest democracy overall, abided by the values of constitutionalism, human rights, and the rule of law in pursuance of our national interest. She further detailed that the resolution's time and context do not align well with the bilateral relations. 

Pakistan: Operation Azm-e-Istehkam approved by the federal cabinet
On 25 June, the federal cabinet approved the Azm-e-Istehkam military operation, a “reinvigorated national counter-terrorism drive” in Pakistan, despite protests by the opposition parties. Earlier on 22 June, Prime Minister Shehbaz Sharif had approved the operation during the Apex Committee meeting and assured that citizens would not be troubled during the operation. He had revealed that the intelligence-based operations would be carried out only against terrorists. The operation has been approved with the consensus of all stakeholders, including provinces, Gilgit Baltistan and Pakistan-occupied Kashmir (PoK). In a statement, the PM office stated: “The approval of the operation symbolises the national resolve to eradicate all forms of extremism and terrorism from the country.” 

Pakistan: NA passes resolution to protect minority rights with overwhelming majority
On 23 June, the National Assembly passed a resolution on the protection of minorities in Pakistan in light of rising cases of violence and lynching following blasphemy allegations. The resolution, which was passed with an overwhelming majority, had been presented by Law Minister Senator Azam Nazeer Tarar who said that both the federal and provincial governments must ensure the safety of minority community members. Calling for action against individuals suspected of violence against minorities, the resolution came days after the lynching case over blasphemy allegations in Khyber Pakhtunkhwa’s Swat. Defence Minister Khawaja Asif also spoke on the issue, expressing concern over the rise in such cases. He stated: “Pakistan is not the country of a single person but every Pakistani who lives here is an equal citizen. All Hindus, Christians and Sikhs are equal citizens.” 

Pakistan: Ambassador Munir urges an international instrument to address “malicious activities” in cyberspace
On 22 June, Ambassador Munir Akram told a United Nations Security Council during a high-level debate that a legally binding international instrument is needed to address growing “malicious activities” in cyberspace. He also mentioned the alleged involvement of an Indian network running a vicious disinformation campaign against Pakistan. The debate was convened by South Korea where Ambassador Munir stated: “This was a systematic and state-led campaign carried out to spread disinformation and misuse the UN as well as European institutions to malign Pakistan.” He expressed concern that several countries including Pakistan are victims of disinformation. He also highlighted the EU DisinfoLab, a Brussels-based NGO report from 2019 and 2020 on anti-Pakistan propaganda and cyber warfare involving ten NGOs, more than 750 fake media outlets, and 550 fake websites.

Pakistan: Pakistan records a “significantly lower” Current Account Deficit
On 21 June, the State Bank of Pakistan released data which revealed that the Current Account Deficit in this fiscal’s first eleven months stood at USD 464 million. This is significantly lower in comparison to the same period of the previous year when the deficit amounted to USD 3.76 billion. The data also revealed that in May 2024, the current amount deficit stood at USD 270. However, there has been a notable shift from April 2024 when the current account posted a surplus of USD 499 million. Low economic growth, high inflation, a hike in exports and remittances have aided in curbing the deficit. Further, “a high interest rate and certain import restrictions” have helped policymakers in lowering the deficit.

THE MIDDLE-EAST THIS WEEK 
Saudi Arabia: Government says 1301 people died in this year’s Hajj pilgrimage
On 23 June 2024, according to CNN, Saudi Arabia’s government stated that 1301 people died during this while performing the Hajj pilgrimage. The government stated that most of the deaths were because of “heat stress” and “unauthorised” trips by pilgrims. The government added that 83 per cent of the deaths were people who were “unauthorised to perform Hajj” and “walked long distances under direct sunlight without adequate shelter or comfort.” To get authorisation for Hajj, pilgrims had to acquire government-issued licenses. However, since the licenses were expensive, thousands of pilgrims arrived unofficially.

Israel: Bezalel Smotrich legalises five Israeli settlements in the West Bank, sanctions Palestinian Authority
On 27 June, according to The Times of Israel, Netanyahu’s security cabinet approved five Israeli settlements in the West Bank and sanctions against the Palestinian Authority. Israel’s Minister of Finance, Bezalel Smotrich, said the sanctions were a response to the PA’s support for the cases against Israel at the International Criminal Court and International Court of Justice. Smotrich also said the cabinet approved thousands of new settlement homes in the West Bank. The legalised settlements were located in the northern, central and southern West Bank. 

Israel: Haredi draft judgement threatens Netanyahu government
On 25 June, according to The Guardian, The Supreme Court of Israel ruled that the ultra-Orthodox community of Haredi Jews must be drafted into military service like other Israeli Jews. So far, the community’s members have been exempted from compulsory military service. Instead, they would study Jewish religious texts with government stipends. A nine-judge panel unanimously ruled that the state was engaging in “invalid selective enforcement” of the law. They added: “In the midst of a gruelling war, the burden of inequality is harsher than ever and demands a solution.” The decision might collapse Prime Minister Benjamin Netanyahu’s government because ultra-Orthodox parties have often threatened to quit his coalition government if the exemption was removed. 

Iran: Snap elections held to replace Raisi
On 28 June, according to the Associated Press, Iran held elections to replace the late President Ebrahim Raisi. Out of the six candidates on the ballots, five were hard-line candidates with close ties to Iran’s Supreme Leadership Authority, Ayatollah Khamenei and or the Islamic Revolutionary Guard Corps. However, one of them, Masoud Pezeshkian, was a reformist who advocated closer ties with the US.

Iran: US imposes economic sanctions on “sprawling shadow banking network” linked to Iran’s military
On 25 June, AP News reported that the US  Treasury Department imposed fresh economic sanctions on 50 people and firms across Hong Kong, the United Arab Emirates and the Marshall Islands. The Treasury Department has accused them of being involved in a “sprawling shadow banking network” for the Iranian military wherein they help facilitate the sale of Iranian oil and petrochemicals helping Iran “gain illicit access to the international financial system.” The revenue thus generated is used to buy weapons and fund Iran’s proxies like Yemen’s Houthis. The revenue has also been used to fund drone transfers to Russia. It has also been alleged that drones supplied to Russia by Iran have been used to bomb Ukrainian civilians.

Iran: Iran and Bahrain agree to talks aimed at “restoring political relations”
On 23 June, Al Jazeera reported that Iran and Bahrain have agreed to start negotiations geared towards “restoring political relations.” According to the Bahraini Foreign Ministry, this development comes in the wake of a meeting between the Bahraini Foreign Minister Abdullatif bin Rashid al-Zayani and the acting Iranian Foreign Minister Ali Bagheri Kani held in Tehran on 23 June during the former’s visit to Iran. A statement released after the meeting stated: “The two sides agreed in this meeting to establish the necessary mechanisms to begin talks between the two countries to study how to resume political relations between them.”

Turkey: FATF removes Turkey from “grey list”
On 28 June, according to Reuters, The Financial Action Task Force removed Turkey from its “grey list,” where it was placed in 2021 for money laundering and terrorist financing. The organisation said Ankara made “significant progress” in improving its regimes on both issues. Vice-President Cevdet Yilmaz stated: "With this development, international investors' confidence in our country's financial system has become even stronger."

Turkey: Erdogan says open to normalisation with Assad
On 28 June, according to Reuters, Turkey’s President Recep Tayyip Erdogan said that he was open to meeting Syria’s President Bashar al-Assad and restoring bilateral relations with Syria. Turkey ended diplomatic relations in 2011 during the Syrian civil war and militarily supported Assad’s opposition forces. Furthermore, it stationed troops in northern Syria. 

AFRICA THIS WEEK
Rwanda: Candidates begin campaigning for the 15 July presidential elections
On 22 June, Africanews reported that Rwanda began campaigning for the presidential elections. The elections are scheduled for 15 July. Three candidates are running for the elections- Paul Kagame, incumbent President and leader of the Rwandan Patriotic Front (RPF) party; Frank Habineza, leader of the Democratic Green party; and Phillipe Mpayimana, an independent candidate.

Madagascar: France funds to install cable cars
On 23 June, Africanews reported that Madagascar introduced cable cars as a new means of public transport. Secretary of State for New Towns and Housing, Gérard Andriamanohisoa, said that the cars would: “Remove 75,000 passengers every day, at bus level, remove 2,000 cars at Tana Road level,” and improve carbon savings and the peoples’ mobility. France provided a EUR 152 million loan for the project. However, the public has complained that the government focussed on cable cars and not on basic social problems including water and electricity.

Republic of Congo: President visits Russia
On 27 June, Africanews reported on the Republic of Congo’s President Denis Sassou Nguesso's visit to Russia. The trip is expected to conclude agreements on energy, trade and security cooperation. This is Nuguesso’s second visit to Moscow this year. Russian President Vladimir Putin stated: “You took part in two Russia-Africa summits, and you are making the necessary efforts to develop our cooperation in almost all areas, I mean the political level, and recently trade and economic relations have been noticeably developing. We are grateful to you for your joint work on the international stage. Overall, everything is working out for us.” Nguesso responded: "We would like to discuss with you and other officials the best way to advance the cooperation between our countries in all the fields, including economy, finance, defence, and security. We need security nowadays.”

EUROPE THIS WEEK 
France: Macron announces his stay till 2027, promises change
On 23 June, President of France Emmanuel Macron announced that he would stay in his position regardless of the outcome of the snap parliamentary elections that was called by him earlier this month. In an open letter, Macron wrote: "The incoming government, which will necessarily reflect your vote, will I hope to resemble the various republicans who will have shown the courage to oppose the extremes”. This comes after the Far-Right’s victory in the European Parliamentary elections. Polls suggest that Marine Le Pen and the far-right Rassemblement National would be victorious in the snap elections as well. Le Pen stated that Macron’s resignation was necessary to avoid the possibility of a hung parliament for the remainder of his term.  While Macron acknowledged the decision to call the snap polls may have caused a kerfuffle, he believed that the elections would only answer the question of “who should govern France?”

Poland: Abortion norm to be eased under Tusk administration
On 25 June, Poland is looking to ease abortion rules, after the parliamentary commission recommended decriminalising the practice within the first 12 weeks of pregnancy. The previous government had tightened Poland’s abortion rule to a near-total ban in 2020- only allowing abortion in the cases of rape or incest, or it would risk the woman's life. While the new government led by Donald Tusk, has been trying to make the country’s law more liberal, disagreements within the coalition have slowed down the process. The Polish parliament will now consider this proposal later this year. 

North Macedonia: Mickoski elected as new Prime Minister
On 24 June, Parliament elected right-leaning Hristijan Mickoski as the new Prime Minister. In the held vote, 77 were in favour, 22 against and 21 absentees. Following the result, Mickoski affirmed immediate changes over new investments, cut taxes, and increased pensions and wages. Mickoski, aged 46 is the leader of the nationalist VMRO-DPMNE party which gained 43 per cent vote with 58 seats in the May elections which was short to form a governing majority. The party won after a long struggle, voter discontent over slow development, a weak economy, corruption and delay in EU integration. However, Mickoski asserted his commitment to EU integration. He said: “We continue to stand together with our partners from the EU and together we will harmonize the common foreign policy with the EU.” 

Regional: Von Der Leyen, Costa, Kallas chosen for the next top EU position
On 25 June, six EU leaders choose Germany’s Ursula von der Leyen, Portugal’s Antonio Cots and Estonia’s Kaja Kallas to hold EU’s senior positions at the European Commission, Council and the foreign policy service. Greek Prime Minister Kyriakos Mitsotakis and Polish Prime Minister Donald Tusk (for the European People’s Party),  Spanish Prime Minister Pedro Sánchez and German Chancellor Olaf Scholz (for the Socialists), and French President Emmanuel Macron and Dutch Prime Minister Mark Rutte (for the liberals) were the six leaders. The next meeting will be among the EU leaders where these three names will be presented to the heads of the states for their approval. Italian Prime Minister Georgia Meloni was not part of the discussion as a condition set out by the Liberals and centre-left groups, who assured that they would not back Von der Leyen if she struck a deal with the Italian leader. 

AMERICA THIS WEEK
El Salvador: 300 culture ministry employees to be fired for “incompatible” agendas
On 27 June, El Salvador’s President, Nayib Bukele, said that the culture ministry would be firing 300 employees accused of promoting agendas “incompatible” with the government’s vision. He added that the government would “save public funds in the process.” Last week, Bukele appointed former teacher Raul Castillo as the culture minister, explaining that he wanted to “promote patriotic and family values.” Following his announcement, ruling party lawmaker Alexia Rivas took to X to state: “El Salvador is pro-life, pro-traditional family and the 2030 agenda has no place here.” She added that since “this is what the people asked for” and the “vision” of Bukele, “this is the path that officials must follow.”

Honduras: Former Honduran president sentenced to 45 years imprisonment on drug charges
On 26 June, a US judge sentenced former Honduran President Juan Orlando Hernandez to 45 years of prison on charges of drug and firearm offences. Earlier in March, a Manhattan jury had found him guilty of accepting bribes worth millions of dollars to protect US-bound cocaine shipments belonging to traffickers. While prosecutors had sought a life sentence, US District Judge Kevin Castel said that this sentence would be able to send a clear message to well-educated and personable defendants who believe that they are insulated from prosecution. Castel added: “They saw him for what he was: a two-faced politician hungry for power.” According to prosecutors, Hernandez, who led Honduras from 2014 to 2022, facilitated shipments of at least 400 tonnes of cocaine to the US. They also claimed that the former president used money from drugs to bribe officials and manipulate the 2013 and 2017 presidential elections in Honduras.  

The US: Department of Justice charges nearly 200 in crackdown on healthcare fraud
On 27 June, US Attorney General Merrick Garland announced that nearly 200 doctors, nurse practitioners, and others in the US had been charged as part of a sweeping nationwide crackdown on healthcare fraud schemes. The US Department of Justice said false claims topped USD 2.7 billion and included a variety of schemes including a USD 900 million scheme in Arizona which targeted dying patients. Garland emphasised: “It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a healthcare company. If you profit from the unlawful distribution of controlled substances, you will be held accountable.”

The US: WikiLeaks founder Julian Assange declared “free man” by US court
On 26 June, the founder of WikiLeaks, Julian Assange, arrived in Australia after pleading guilty in a US court in Saipan to a charge of espionage, relating to obtaining and publishing US military secrets. District Judge Ramona Manglona, who had earlier sentenced Assange to five years and two months in prison (which he served in the UK), said on 26 June that Assange is a “free man.” During his address to the court, Assange stated that while he believed that the Espionage Act he was charged under was in contradiction of his First Amendment rights, encouraging sources to release classified information that would be published could be unlawful. Under this plea deal, Assange will have to destroy information provided to WikiLeaks. Following this, Australia’s Prime Minister Anthony Albanese said the hearing was a “welcome development,” detailing that Australia had used “all appropriate channels” to support a “positive outcome.” 

About the Authors
Akriti Sharma and Rohini Reenum are PhD scholars at NIAS. Padmashree Anandhan is a Project Associate at NIAS. Anu Maria Joseph is a Research Associate, Femy Francis, Dhriti Mukherjee, Shamini Velayutham, Akhil Ajith and Vetriselvi Baskaran are Research Assistants at NIAS. Sayeka Ghosh, Ayan Datta, Neha Teresa George, Ken B Varghese and Mugdha Chaturvedi are Research Interns at NIAS. Sanjay Manivanan is a postgraduate scholar at the Department of Defence and Strategic Studies, University of Madras

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