■ Oil
Threat to Asia highlighted
Soaring oil prices pose a bigger threat to Asia than a slowdown in China, potentially upsetting the current economy recovery, a Citigroup report said yesterday. There is little sign that China's fast growth will come to a screeching halt, but an oil price shock which persists could prove worrying for many of the region's economies, the report warned. The Asia Economic Outlook said: "No country in Asia would see a surge in growth from higher oil prices, with the possible exception of Vietnam," the report said. Thailand, the Philippines, Malaysia and Indonesia would see growth drop by about 0.6-0.8 percentage points by the fourth quarter and through the first half of next year, "sizeable but manageable effects," Citigroup said.
■ Crime
Criminals using SMS
A growing number of Chinese criminals send text messages or e-mails with the sole purpose of hoodwinking people into parting with their money, the Xinhua news agency reported yesterday. "Defrauders ... send false messages to a mass of cell-phone users, telling them they have won prizes in a lottery or they are offered very cheap smuggled goods," said Zhang Xinfeng, assistant minister of public security. "If they contact the defrauders, the latter usually ask them to remit money to appointed bank accounts for paying taxes, postage or insurance charges," he said. Many people believe this and spend all their money on goods they never see, while some officials have even embezzled public funds in order to come up with the money, he said.
■ Aircraft
Airline chooses Boeing
Air New Zealand will buy six new passenger jets from Boeing at a cost of NZ$1.35 billion (US$850 million) and plans to lease four more, the carrier said yesterday. The eight new Boeing 777-200s and two new 7E7s will enable the national carrier to develop new routes, increase the frequency of existing routes, and increase its passenger and freight capacity, it said in a statement. Air New Zealand is buying the 7E7s and four of the 777-200s from Boeing, while the remaining jets will be leased from International Lease Finance Corporation, the statement said. It also plans to buy a further 42 Boeing aircraft in the future, the statement said. Boeing will begin delivery of the 777-200s in September next year and the order will be completed by late 2006, it said.
■ Trade
Central Asia in US deal
The US and five Central Asian countries signed an agreement Tuesday that provides a forum to address trade issues and enhance trade and investment. The Trade and Investment Framework Agreement (TIFA) was signed by US Trade Representative Robert Zoellick and representatives from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Zoellick said the agreement would "increase and diversify trade and investment opportunities." The US, he said, looked forward to working closely through the TIFA to further strengthen its economic relationships with the five countries and the region as a whole. The TIFA will have a regular forum to address trade issues that hamper intra-regional trade and economic development and can act as impediments to investment, Zoellick said.
BACK IN THE NEIGHBORHOOD: The planned transit by the ‘Baden-Wuerttemberg’ and the ‘Frankfurt am Main’ would be the German Navy’s first passage since 2002 Two German warships are set to pass through the Taiwan Strait in the middle of this month, becoming the first German naval vessels to do so in 22 years, Der Spiegel reported on Saturday. Reuters last month reported that the warships, the frigate Baden-Wuerttemberg and the replenishment ship Frankfurt am Main, were awaiting orders from Berlin to sail the Strait, prompting a rebuke to Germany from Beijing. Der Spiegel cited unspecified sources as saying Beijing would not be formally notified of the German ships’ passage to emphasize that Berlin views the trip as normal. The German Federal Ministry of Defense declined to comment. While
‘UPHOLDING PEACE’: Taiwan’s foreign minister thanked the US Congress for using a ‘creative and effective way’ to deter Chinese military aggression toward the nation The US House of Representatives on Monday passed the Taiwan Conflict Deterrence Act, aimed at deterring Chinese aggression toward Taiwan by threatening to publish information about Chinese Communist Party (CCP) officials’ “illicit” financial assets if Beijing were to attack. The act would also “restrict financial services for certain immediate family of such officials,” the text of the legislation says. The bill was introduced in January last year by US representatives French Hill and Brad Sherman. After remarks from several members, it passed unanimously. “If China chooses to attack the free people of Taiwan, [the bill] requires the Treasury secretary to publish the illicit
A senior US military official yesterday warned his Chinese counterpart against Beijing’s “dangerous” moves in the South China Sea during the first talks of their kind between the commanders. Washington and Beijing remain at odds on issues from trade to the status of Taiwan and China’s increasingly assertive approach in disputed maritime regions, but they have sought to re-establish regular military-to-military talks in a bid to prevent flashpoint disputes from spinning out of control. Samuel Paparo, commander of the US Indo-Pacific Command, and Wu Yanan (吳亞男), head of the People’s Liberation Army (PLA) Southern Theater Command, talked via videoconference. Paparo “underscored the importance
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
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