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October
Reaction to China's 20th Communist Party Congress
Written by Nur Yasmin
China's Xi Jinping secured a precedent-breaking third leadership term on Sunday and introduced a new Politburo Standing Committee stacked with loyalists, cementing his place as the country's most powerful ruler since Mao Zedong.
Here are initial reactions from analysts and experts:
ALVIN TAN, HEAD OF ASIA FX STRATEGY, RBC CAPITAL MARKETS, SINGAPORE"
“It does look like it’s dominated by Xi’s allies.”
“In terms of policymaking, it does mean that there is likely to be more deference to Xi Jinping’s own views about how to move the country and the economy forward... I can imagine that zero-COVID policy is likely more entrenched and there’s going to be further push on this issue of common prosperity and the like.”
DREW THOMPSON, VISITING SENIOR RESEARCH FELLOW AT NATIONAL UNIVERSITY OF SINGAPORE'S LEE KUAN YEW SCHOOL OF PUBLIC POLICY:
"This is a leadership that will be focussed on achieving Xi’s political goals, rather than pursuing their own agendas for what they think is best for the country. There is only one correct way to govern, and that is Xi’s way.
"Foreign investors and businesses have desperately searched for signs that liberals or 'reformers' will play a role in shaping the economy or bringing back an old economic order that prioritised foreign investment and liberalisation of the economy. It is clear from the outcome of the 20th Party Congress that national security and the party’s political security will take precedence over economic growth."
RICHARD McGREGOR, SENIOR FELLOW FOR EAST ASIA, LOWY INSTITUTE, SYDNEY:
"The result was a resounding victory for Xi, more decisive than many experienced observers had forecast. All of his rivals, potential and real, have been forced out of the Politburo Standing Committee and Xi loyalists took their place. The new Politburo is an emphatic statement of Xi’s dominance over the party.
"I think the congress has drawn a line between the past and the future in profound ways, both for Chinese domestic politics and the way in which its influence spills out into the rest of the world.
"Xi has dispensed with the old factional system, such as it was. He has crushed expectations that he would nurture a successor. He has ignored the informal age caps on officials serving in top positions."
CHRIS MILLER, PROFESSOR AT TUFTS UNIVERSITY, MASSACHUSETTS:
“The party congress has reaffirmed Xi's decisive role in ruling the Communist Party, marking a continued shift away from collective leadership of party elites toward a personalized dictatorship. It also appears to have confirmed the downgrading of economic growth as a key party goal, relative to other agenda items such as zero-COVID and the party's political and ideological control. On tech, the key theme was self-sufficiency in science and technology, which is to be expected given the increasing decoupling of the U.S. and Chinese tech sectors.”
YANG ZHANG, ASSISTANT PROFESSOR, AMERICAN UNIVERSITY SCHOOL OF INTERNATIONAL SERVICE, WASHINGTON:
"This (Politburo Standing Committee) does not mean that Xi will become an omnipotent supreme leader and can do anything. Above all, his unlimited power will be constrained by his limited capacity and decreasing energy as he turns older. Remember Mao or Emperor Qian Long?
"Plus, Xi's full control means his team will be fully responsible for any policy mistake. His autocracy may provoke stronger international pushback from the U.S.-led Western countries. All of these scenarios will make his third and likely fourth terms not as easy as expected."
GARY NG, SENIOR ECONOMIST, ASIA PACIFIC, NATIXIS, HONG KONG:
“The new inner circle will extend and heighten the current policy stance, and generally it seems that most of the newly appointed officials seem to be Xi’s key allies. So I guess this is also a move of the further consolidation of power, or maybe in the future, of course, performance is important, but also loyalty is increasingly a key concern when picking officials.”
JA IAN CHONG, POLITICAL SCIENTIST, NATIONAL UNIVERSITY OF SINGAPORE:
"It certainly seems to be a consolidation of Xi’s position. This means that policies will be more directly attached to Xi for good or ill. I guess that translates to more focus on party-state control over business, less dependence on imports even as the PRC (People's Republic of China) seeks to export. So probably more direct party-state direction of the economy. Investment will likely seek to meet those above goals, especially if they can bring in technology. So while there may be opportunities for investors, they have to look to both market forces and political preferences more. So more of what we have already been seeing.
"Probably no lifting of COVID-zero policy in the near future, and more assertiveness in foreign and security. Even more broadly, U.S.-PRC friction will continue to grow."
DYLAN LOH, ASSISTANT PROFESSOR, NANYANG TECHNOLOGICAL UNIVERSITY:
"It's quite clear that the Politburo have been stacked with Xi loyalists and that would mean he has a much freer rein and mandate in pursuing his domestic and foreign policies as collective leadership and decision making has been de-emphasised over coalescing around Xi and implementing his decisions. It seems that he has not elevated a potential successor for now, which gives him the flexibility for a fourth term. Regarding investment, I do not think China's policies will turn sharply because of this line up, I think by and large Xi's priorities have not changed."
"Wang Huning’s presence also indicates to me that the ideological bent of the party and Xi will continue and even deepen."
PEIQIAN LIU, CHINA ECONOMIST, NATWEST MARKETS, SINGAPORE:
“It’s kind of in line and a surprise. What has been in line with expectations is really (that) President Xi is consolidating his power... And what’s been surprising is that there have been four people sort of retired from the Standing Committee – that’s more than our initial expectation of two.”
“It does look like Xi is having more say within the Politburo Standing Committee, and also with his ideology being written in the party’s charter, that’s a symbolisation of him being more strategically important within the political committee.” (Reuters)
October
World Meteorological Organisation Secretary general Pettreri Taalas -
The supply of electricity from clean energy sources must double within the next eight years to limit global temperature increase. Otherwise, there is a risk that climate change, more extreme weather and water stress will undermine our energy security and even jeopardize renewable energy supplies, according to a new multi-agency report from the World Meteorological Organization (WMO).
WMO’s State of Climate Services annual report, which includes inputs from 26 different organizations, focuses on energy this year because it holds the key to international agreements on sustainable development and climate change and, indeed, to the planet's health.
“The energy sector is the source of around three-quarters of global greenhouse gas emissions. Switching to clean forms of energy generation, such as solar, wind and hydropower – and improving energy efficiency – is vital if we are to thrive in the twenty-first century. Net zero by 2050 is the aim. But we will only get there if we double the supply of low-emissions electricity within the next eight years,” said WMO Secretary-General Prof Petteri Taalas.
Access to reliable weather, water and climate information and services will be increasingly important to strengthen the resilience of energy infrastructure and meet rising demand (an increase of 30% in the past ten years).
According to a release received by Voice of Indonesia on Saturday (22/10/22), the 2022 State of Climate Services: Energy report has plenty of good news. It highlights the huge opportunities for green powered grids to help tackle climate change, improve air quality, conserve water resources, protect the environment, create jobs and safeguard a better future for us all.
By 2050, global electricity needs- which will be increasing over the years being electrification a strategic lever to tackle Net Zero goals - will mainly be met with renewable energy, with solar the single largest supply source. African countries have an opportunity to seize untapped potential and be major players in the market. Africa is home to 60% of the best solar resources globally, yet with only 1% of installed photovoltaic capacity.
”We urgently need to respond to the growing impact of climate change on energy systems if we are to maintain energy security while accelerating the transition to net-zero. This requires long-term planning and bold policy action to spur investment, which in turn needs to be underpinned by comprehensive and reliable weather and climate data,” says Dr Fatih Birol, International Energy Agency Executive Director.
“Now is the time to accelerate the transition to a renewable energy future. Anything short of radical and immediate action will ultimately eliminate the chance of staying on the 1.5°C path. The intertwined energy and climate crises have dramatically exposed the weaknesses and vulnerabilities of an economic system heavily reliant on fossil fuels. Advancing the transition to renewables is a strategic choice to bring affordable energy, jobs, economic growth and a resilient environment to the people and communities on the ground,” said Francesco La Camera, IRENA’s Director-General.
More can and must be done. According to UN Secretary-General Antonio Guterres, bold climate action could deliver US$26 trillion in economic benefits by 2030. And yet, investment in renewable energy is much too low, especially in developing countries and too little attention is paid to the importance of climate services for energy to support both climate adaptation and decisions on how to reduce greenhouse gases.
“The Adaptation Fund is pleased to be a founding partner and contributor to this valuable report. The energy sector is crucial in helping curb emissions that cause climate change – at the same time, energy production itself needs to adapt to the climate impacts that are already taking place and accelerating.
The Adaptation Fund funds projects that are based on the adaptation priorities of vulnerable developing countries, and we have been pleased to see an increasing number of country-driven activities that address the specific adaptation needs of the energy sector at different scales,” says Mikko Ollikainen, Head of the Adaptation Fund.
The report will be launched at a high-level event on 11 October and will also be presented to the World Energy Council summit on 13 October in Scotland. It is accompanied by an interactive digital story map//VOI
October
Pakistan ex-PM Khan barred from office, sparking protests
Written by Nur Yasmin
Former Pakistani Prime Minister Imran Khan was barred from holding public office on Friday after the top election tribunal found him guilty of unlawfully selling gifts from foreign dignitaries and heads of state, a lawyer and a minister said.
The ruling adds to the political and economic uncertainty plaguing Pakistan since earlier this year when Khan was ousted from power, and supporters took to the streets in different cities in protest, blocking roads and highways and setting tyres on fire.
The 70-year-old cricketer-turned-politician was accused of misusing his 2018 to 2022 premiership to buy and sell gifts in state possession that were received during visits abroad and worth more than 140 million Pakistani rupees ($635,000).
The gifts included watches given by a royal family, according to government officials, who have alleged previously that Khan's aides sold them in Dubai.
According to a list shared by Information Minister Marriyum Aurangzeb, the gifts include seven wrist watches, six made by watchmaker Rolex, and the most expensive a "Master Graff limited edition" valued at 85 million Pakistani rupees ($385,000).
The list, which Reuters could not independently verify, also contained perfumes, diamond jewellery and dinner sets.
Khan in a statement later on Friday denied any wrongdoing and termed the decision "biased", adding he had legally purchased the items. He called on supporters to stop protests, saying he would challenge the ruling in court and it would likely be overturned.
The tribunal, the Election Commission of Pakistan, is yet to officially release a ruling providing details such as how long the former premier would be barred from public office. Law Minister Azam Nazeer Tarar told a conference on Friday that Khan would be disqualified for five years.
Since being removed from office, Khan has held protest gatherings across the country calling for snap elections, but the government has said they will be held as scheduled in October or November next year.
The political instability has also fuelled economic uncertainty, with international ratings agencies questioning if the current government can maintain difficult economic policies in the face of political pressure and looming polls.
Under Pakistani law, a legislator found guilty of corruption or misuse of public office can be barred for up to five years.
Faisal Chaudhry, a lawyer in Khan's team, told Reuters the tribunal had no jurisdiction in the matter and that a challenge would be filed.
"It's an illegal and unconstitutional order," he said.
Prime Minister Shehbaz Sharif welcomed the ruling, however, writing on Twitter that the prime minister's post was made into a source of personal income through "corrupt practices".
"The idol of 'honesty and trustworthiness' was shattered," Sharif said.
Michael Kugelman, the director of South Asia Institute at The Wilson Centre said, "No matter how you slice it, and no matter how it plays out, the ruling worsens an all-encompassing political crisis that will make it all the more difficult to address Pakistan’s perfect storm of other crises - economic stress, resurgent terrorism, and floods."
'CERTIFIED THIEF'
Khan supporters protested in different cities, officials said.
In the northwestern city of Peshawar, where Khan’s Pakistan Tehreek-e-Insaf (PTI) party runs the provincial government, groups of supporters, dozens each in size, blocked a number of key roads including the highway connecting the city to the capital Islamabad, to the dismay of drivers.
"I am going to our village for the weekend with my family and was waiting in the car for more than two hours as the roads are blocked by the PTI workers," said Hameed Khan in Peshawar.
"We didn't disqualify their leader, then why do they punish us?"
A few dozen protesters tried to block one key artery into Islamabad and were pushed back with teargas, said police official Sohail Khan. He said that the protesters attacked the police with bricks, injuring three officials, and had tried unsuccessfully to block others roads in the capital as well.
Dozens of Imran Khan’s supporters also blocked roads in the eastern city of Lahore, setting fire to tyres.
Khan opponent Maryam Nawaz, from the ruling Pakistan Muslim League-Nawaz (PML-N), told reporters in London in recorded comments telecast by local Geo News TV: "It is proved now that he is a certified thief." (Reuters)
October
Taliban kill six Islamic State members in raid in Kabul
Written by Nur Yasmin
Taliban security forces killed six Islamic State members in an overnight operation in the Afghan capital, Kabul, a spokesman for the ruling group's administration said on Saturday.
The Islamic State members killed in the raid on their hideout were involved in two major attacks in recent weeks, one on a city mosque and the other on a tutoring institute in which dozens of female students were killed, said the spokesman, Qari Yusuf Ahmadi."They were the attackers of the Wazir Akbar Khan mosque and also ... of Kaaj Institute," said Ahmadi, who said one Taliban security force member was killed in the operation.
No group claimed responsibility for either attack.
The blast at the female section of the Kaaj Institute education centre on Sept. 30 killed 53 people, most of them girls and young women.
On Sept. 23, at least seven people were killed and more than 40 wounded in blast near a mosque in Wazir Akbar Khan, a heavily fortified neighbourhood once home to a "Green Zone" of embassies and foreign force bases.
Since the Taliban took over in 2021, they say they have focused on securing the country after decades of war.
However, a series of blasts have rocked the capital and other urban areas in recent months and the United Nations has said security is deteriorating.
The Afghan affiliate of Islamic State, known as Islamic State Khorasan, after an old name of the region, are enemies of the Taliban.
Fighters loyal to Islamic State first appeared in eastern Afghanistan in 2014, and later made inroads in other areas. (Reuters)
October
China reports 1,006 new COVID cases for Oct 21 vs 997 a day earlier
Written by Nur Yasmin
China reported 1,006 new COVID-19 infections on Oct. 21, of which 215 were symptomatic and 791 were asymptomatic, the National Health Commission said on Saturday.
That compared with 997 new cases a day earlier – 214 symptomatic and 783 asymptomatic infections, which China counts separately.
There were no new deaths, the same as the previous day, keeping fatalities at 5,226. As of Friday, mainland China had confirmed 257,115 cases with symptoms.
China's capital Beijing reported 18 symptomatic cases and one asymptomatic case, compared with 15 symptomatic and two asymptomatic cases the previous day, local government data showed.
Financial hub Shanghai reported no symptomatic and 16 asymptomatic cases, compared with no symptomatic and 13 asymptomatic cases a day before, the local health authority reported.
The southern technology hub of Shenzhen reported 10 new locally transmitted COVID infections, compared with 14 infections the day before. (Reuters)
October
Australia's Albanese, Japan's Kishida agree to strengthen security ties
Written by Nur Yasmin
Australian Prime Minister Anthony Albanese and his Japanese counterpart Fumio Kishida agreed on Saturday to strengthen security ties between the two U.S. allies amid China's push for greater influence in the Asia-Pacific region.
At the annual Australia-Japan Leaders' Meeting, held in the Western Australia capital Perth, the two signed a security cooperation agreement updating a 2007 pact, to respond to a changed regional security environment.
As part of the bolstered security partnership, Albanese said Japan's military would train and exercise in northern Australia alongside Australian Defence Force personnel.
In their fourth summit since Albanese took office in May, they said the agreement would serve "as a compass" for security cooperation for the next decade. They agreed to consult and study responses to emergencies that could affect regional security.
Albanese and Kishida also discussed climate change, expressing support for a regional transition to net zero carbon emissions and boosting investment in clean energy tech.
"Both our countries are committed to net zero by 2050," Albanese told reporters after a signing ceremony.
Among those efforts, the leaders agreed to help build secure supply chains between the two nations for "critical minerals, including those that are required for building the green technologies of the future," Albanese said.
"This partnership will mean we build secure supply chains, promote investment, develop Australia's domestic sector and make sure Japan's advanced manufacturers have the critical minerals they need."
As well as building a framework for secure supply chains, the partnership would promote information sharing and collaboration, including research, investment and commercial arrangements between Japanese and Australian critical minerals projects, the Australian government said in a statement.
Kishida told reporters signing the updated joint security declaration was one of the largest achievements of his visit.
"I expressed my determination that all necessary options for the defence of our country, including the so-called counterstrike capability, would become contemplated and Japan's defence capability will be fundamentally reinforced in the next five years, which is supported by Anthony," he said.
The Japanese leader said the two nations had been working to achieve a free and open Indo-Pacific under "an increasingly severe strategic environment".
"Through this experience, the bonds that tie Japan and Australia together have become much stronger. And our two countries have become the central pillar of cooperation among like-minded countries," he said.
Australia is a major supplier of iron ore, coal and gas to Japan. Locating the meeting in Perth, 3,700 km (2,300 miles) from the national capital Canberra, was meant to showcase Western Australia's importance in supplying Japan's energy needs, including renewable energy. The state is also a key source of beef and wheat to Japan.
Canberra and Tokyo recently bolstered security ties in response to China's growing military strength in the region. In May, Kishida and Albanese pledged to work toward a new bilateral declaration on security cooperation.
A previous joint declaration outlined security cooperation in areas such as counter-terrorism and North Korea's missile and nuclear weapons programmes. The two countries in 2014 elevated their relationship to a "Special Strategic Partnership". (Reuters)
October
China's Xi further cements power as party congress closes
Written by Nur Yasmin
China's Communist Party wrapped up its twice-a-decade congress on Saturday, approving amendments to its charter aimed at cementing Xi Jinping's core status and revealing a new Central Committee missing two key officials lacking close ties to Xi.
The party's new Central Committee does not include Premier Li Keqiang or Wang Yang, a sign that analysts have said suggests the next Politburo Standing Committee, to be unveiled around noon (0400 GMT) on Sunday, is likely to be stacked with people close to Xi.
Li, who will step down in March as premier, and Wang, who heads the Chinese People's Political Consultative Conference, are both 67 and therefore eligible under China's age norms to have served another five years on the powerful seven-member Standing Committee.
Neither is seen to have long-standing ties with Xi, who is likely to bring four new faces onto the Standing Committee, according to analysts and media reports. Current members Wang Huning, 67, and Zhao Leji, 65, who are both perceived to be close to Xi, were both re-elected to the 205-member Central Committee and are expected to be reappointed to the PSC.
Two other PSC members are past retirement age.
Li and Wang - who had been considered by some party-watchers as a candidate to succeed Li as premier - both have ties with the Communist Youth League, a once-influential group that experts say has lost power under Xi.
“Xi Jinping is trying to consolidate the premier position, not just that of the general secretary,” said Srikanth Kondapalli, a professor of China studies at Jawaharlal Nehru University in New Delhi.
CONSTITUTIONAL AMENDMENTS
Also on Saturday, the party approved amendments to its constitution aimed at cementing the core status of Xi and the guiding role of his political thought within the party as it wrapped up its twice-a-decade congress.
The new Central Committee on Sunday will choose the elite Politburo Standing Committee, with Xi, 69, widely expected to secure a third leadership term.
A third five-year leadership term would solidify Xi's place as China's most powerful ruler since Mao Zedong, founding leader of the People's Republic.
Among the amendments to the party constitution, the "Two Establishes" define Xi as the "core" leader of the party and cement his ideas as the guiding principles of China's future development. The "Two Safeguards" assure Xi's "core" status within the party and the party's centralised authority over China.
Voting was conducted by show of hands in the vast Great Hall of the People, where much of the week's party congress proceedings have taken place behind closed doors.
The congress concluded with a military band playing "The Internationale".
At its first plenum on Sunday, the party's new central committee will choose the next Politburo, which is typically 25 people, and its new Standing Committee.
The new leadership will be unveiled when Xi, widely expected to be renewed in China's top post as party general secretary, walks into a room of journalists at the Great Hall, followed by the other members of the Standing Committee in descending order of rank.
During the closing ceremony, Xi's immediate predecessor, Hu Jintao, who was seated next to him, was escorted from the stage. Hu, 79, had appeared slightly unsteady last Sunday when he was assisted onto the stage for the opening ceremony. (Reuters)
October
India's Congress elects first non-Gandhi chief in 24 years
Written by Nur Yasmin
India's opposition Congress party declared veteran leader Mallikarjun Kharge its new chief on Wednesday, the first person from outside the influential Nehru-Gandhi family to hold the beleaguered party's presidency in 24 years.
Kharge, an 80-year-old from the lowest rung of India's caste system, is seen as a loyalist of the Gandhi family, which has produced three Indian prime ministers and is expected to retain its clout over the party.
The Congress hopes to revive its flagging fortunes with a new leader after losing two general elections and control of some state assemblies to Prime Minister Narendra Modi's Bharatiya Janata Party (BJP).
"The most important issues facing the country right now is inflation, unemployment, a widening divide between the rich and poor and a growing environment of hatred spread by the ruling government," Kharge told reporters after his win.
He overwhelmingly won the party vote held on Monday, defeating former U.N. diplomat Shashi Tharoor.
Despite the change at the top of the Congress, the BJP, which advocates a hard-right, nationalist stance, appears to be in a strong position to win a third successive term in a general election due by 2024.
The 137-year-old Congress, which helped win India's independence from colonial power Britain and then dominated politics for decades, has long championed a secular polity.
"This symbolic change of the president is a very powerful moment for the Congress," said Neelanjan Sircar, a senior fellow at the Centre for Policy Research think tank.
"Its desire to change will have to reflect in organisational change on the ground."
Disgruntled senior party members have in recent months challenged the party's operation under its interim president, Sonia Gandhi, who took charge after her son, Rahul Gandhi, resigned following the party's loss to the BJP in a 2019 general election.
Sonia and Rahul are the widow and son of assassinated former Prime Minister Rajiv Gandhi, who followed his mother Indira Gandhi and grandfather Jawaharlal Nehru. The three collectively ruled India for all but around four of its first 40 years of independence.
Kharge said Rahul Gandhi had congratulated him on the phone and told him that he would keep working as a "foot soldier" of the Congress. (Reuters)
October
Japan imports surge on weaker yen, fanning inflation fears
Written by Nur Yasmin
Japan's imports grew more than 40% for a fifth straight month in September to hit the largest value on record as a slump in the yen aggravated already high fuel import costs, stoking fears of cost-push inflation.
The surge in imports overwhelmed growth in exports, resulting in a 2 trillion yen ($13.3 billion) trade deficit and extending the run of shortfalls to 14 months, adding to downward pressure on the Japanese currency.
For the fiscal first half to end-September, Japan's trade deficit jumped to a record 11 trillion yen, the Ministry of Finance (MOF) data showed, driven by surging fuel bills and a 20% decline in the yen against the dollar over the period.
Persistent deficits worsen Japan's terms of trade, causing a shift of domestic income overseas and undermining Japanese purchasing power.
Once welcomed for making exports more competitive, the yen's weakness is now seen hurting households and retailers by inflating already high prices of imported fuel and food. The currency's sharp falls also heighten uncertainty for firms making business decisions.
"Surging imports are by no means a reflection of strength in domestic demand. Instead, higher living costs will prompt households to tighten their belts," said Takeshi Minami, chief economist at Norinchukin Research Institute.
"The weak yen may be inflating export value, but external demand is slowing down. I would not be surprised if Japan would follow Europe and the United States in sliding into recession next year when the global tightening cycle runs its course."
The MOF data showed Japan's imports rose 45.9% year-on-year in September, led by crude oil, liquefied natural gas and coal, roughly matching economists' median estimate.
It was the 20th straight month of gains and took imports to 11 trillion yen, the largest value on record, according to MOF data going back to 1979. Imports rose 49.9% in the previous month.
Exports rose 28.9% in September from the same month a year ago, driven by U.S.-bound shipments of cars and demand for chip and electronics parts from South Korea. The rise compared with a 27.1% increase expected by economists, taking the value of exports to the largest on record.
By region, exports to China, Japan's largest trading partner, grew 17.1% year-on-year in September, led by demand for cars and chip-making equipment.
U.S.-bound shipments advanced 45.2% in the year to September, led by shipments of cars, construction and mining machinery.
Japan's economy expanded at an annualised 3.5% in April-June, posting a third straight quarter of growth, as the lifting of COVID-19 curbs boosted consumer and business spending.
Japanese authorities spent 2.8 trillion yen last month intervening to sell the dollar and buy the yen for the first time since 1998 to support the Japanese currency. (Reuters)
October
U.S. considering joint weapons production with Taiwan
Written by Nur Yasmin
The U.S. government is considering a plan to jointly produce weapons with Taiwan, a business lobby said on Wednesday, an initiative intended to speed up arms transfers to bolster Taipei's deterrence against China.
U.S. presidents have approved more than $20 billion in weapons sales to Taiwan since 2017 as China has ramped up military pressure on the democratically-governed island Beijing claims as its own territory.
But Taiwan and the U.S. Congress have warned of delivery delays because of supply chain difficulties and backlogs caused by increased demand for some systems due to the war in Ukraine.
"It's right at the beginning of the process," Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council, which counts numerous U.S. defense contractors as members, said of the plan.
Hammond-Chambers said it was yet to be determined which weapons would be considered as part of the effort, though it would likely focus on providing Taiwan with more munitions and long-established missile technology.
But he cautioned that any such move would require weapons makers to obtain co-production licenses from the State and Defense departments. Hammond-Chambers added there could be resistance within the U.S. government to issuing co-production licenses due to uneasiness about approving critical technology for a foreign platform.
"It's a piece of the puzzle, not a game changer," Hammond-Chambers told Reuters after Japan's Nikkei newspaper first reported on the plan, citing three unidentified sources.
Taiwan's Foreign Ministry declined to comment, but reiterated that Taiwan-U.S. relations were both "close and friendly".
Possibilities would include the United States providing technology to produce weapons in Taiwan, or producing the weapons in the United States using Taiwanese parts, the Nikkei report added.
Asked about the effort, a U.S. State Department spokesperson said: "The United States is looking at all options to ensure the rapid transfer of defensive capabilities to Taiwan."
"The United States' swift provision of Taiwan defensive weaponry and sustainment via Foreign Military Sale and Direct Commercial Sale is essential for Taiwan's security and we will continue to work with industry to support that goal," the spokesperson said.
News of the plan came after U.S. Secretary of State Antony Blinken told a forum at Stanford University on Monday that "Beijing was determined to pursue reunification (with Taiwan) on a much faster timeline," though he did not specify a date.
China's leader Xi Jinping said on Sunday that China would never renounce the right to use force over Taiwan, but that it would strive for a peaceful resolution.
Taiwan's presidential office said this week Taiwan would not back down on its sovereignty and would not compromise on freedom and democracy, but that meeting on the battlefield was not an option.
U.S. officials have been pushing Taiwan to modernize its military so it can become a "porcupine," hard for China to attack.
U.S. officials have criticized Beijing for using a visit by U.S. House Speaker Nancy Pelosi to Taiwan in August as a pretext to change the status quo across the Taiwan Strait by ramping up nearby military drills. (Reuters)