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China’s NPC raises questions about the economy, defence, new technologies

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China’s NPC raises questions about the economy, defence, new technologies

China’s week-long meeting of the National People’s Congress (NPC), which gathered some 3,000 delegates from the political, business and cultural elite in Beijing, has closed without the customary press conference by the country’s premier.

The annual meeting of the country’s parliament began on March 4 at the Great Hall of the People in Tiananmen Square, with delegates tasked with approving new laws and political appointments as well as assessing a litany of reports from departments across the government.

Since 1993, proceedings have wrapped with a press conference by the country’s premier but it was announced last week that Li Qiang would not be speaking to journalists.

If he had, he might have been able to give some insight into the legislation NPC delegates approved, including a shift towards “future industries” and a focus on national security.

Here are five key takeaways from this year’s formalities.

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Open to AI

Facial recognition scanners at the entrance to the NPC offered delegates an idea of what a “future industries”-focused economy might look like.

Military delegates arrive at the closing session of the 14th National People’s Congress (NPC) at the Great Hall of the People [Wang Zhao/AFP]

Inside, Premier Li Qiang’s Government Work Report detailed how new technologies – from electric vehicles to commercial space flights – could help China’s economy escape the weight of a faltering property market.

“The two sessions clearly conveyed China’s intention to focus on the development of new technology in order to achieve self-sufficiency,” Angela Zhang, an associate professor of law at the University of Hong Kong, told Al Jazeera.

“China is driven by a sense of urgency to catch up with the United States,” said Zhang, who is also the author of High Wire: How China Regulates Big Tech and Governs Its Economy.

To meet potential economic growth through new technologies, Zhang told Al Jazeera she believes “the Chinese government will adopt a relatively lenient approach towards regulating new technologies like AI”.

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Future Industries

While facial recognition cameras indicate that China could join Israel and the US in the lucrative market of surveillance technology, Bert Hofman, a professor at the East Asian Institute of the National University of Singapore, sees a range of ways in which new technologies could help China escape recent economic woes.

a soldier in the foreground is blurry while surveillance cameras can be seen behind him
Security cameras near the Great Hall of the People at Tiananmen Square [Bloomberg/Getty Images]

While China is “on track” to meet its climate targets by 2060, Hofman says it could potentially see economic benefits from “front-loading” its green transition sooner as has also been argued by Martin Wolf, the chief economics commentator at the Financial Times.

For example, Hofman told Al Jazeera that the government could give “subsidies to households to buy more of the outputs of China’s surging EV [electric vehicle] manufacturing”.

Defence and security

The government did not announce a specific target for spending on its green transition at the NPC.

By contrast, it did announce that defence spending would rise by 7.2 percent in 2024, the same level of increase as in 2023.

A spokesperson explaining the increase said: “China has maintained a comparatively low military expenditure and the nation always sticks to a peaceful development road”.

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But references to peace were notably absent from sections of the premier’s work report in its references to Taiwan. Last year’s report called for “advanc[ing] the process of China’s peaceful reunification”, while this year, Li said China would “be firm in advancing the cause of China’s reunification”.

According to Hofman, the increase in China’s military spending announced at the NPC may not result in an increase in real terms.

He told Al Jazeera he is more concerned about the focus on “future industries and the industrial policy that will go into developing them in China” after the focus on this area at this year’s NPC.

Still, China’s military spending has attracted much attention given that other countries are already spending more on defence.

According to the Stockholm International Peace Research Institute (SIPRI),  other countries, including the US, Japan, Australia and South Korea, have increased military spending “driven by a perception of a growing threat from China”.

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Beijing’s defence budget has more than doubled since 2015 but, according to William D Hartung of the Quincy Institute, the US continues to outspend China on its military by a substantial margin.

Hartung cites data from SIPRI which he says go beyond China’s official military expenditures to include the “full range of China’s military-related activities”. Even taking this into account, according to the latest SIPRI estimate, US military spending at $877bn was about three times higher than Chinese military spending at $292bn in 2022.

Difficult economic questions

Speaking to delegates, some ministers were relatively frank about the challenges China is facing, especially in the area of economic growth.

Housing Minister Ni Hong was quoted as describing the task of fixing China’s property market as “very difficult”.

The collapse of property developer Evergrande was potentially a touchy subject at the meeting with one journalist reportedly having been questioned about her ties to the company after going through a facial recognition scanner.

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China’s target of 5 percent growth for 2024 was seen by some as “ambitious”, although Hofman sees it as relatively realistic if China is able to escape a potential “deflationary spiral”.

He says Beijing has been wary of stimulus tied to the flailing housing market but that there are other ways it could help get more money into people’s hands to help stimulate the economy, such as a recent “very minimal” increase in rural pensions of about 20 Chinese yuan ($2.78) per month.

Delegates at the NPC go through previously agreed documents “almost line by line” meaning there are few, if any, new announcements during official proceedings, said Hofman.

Wang Yi at a press conference in Beijing. He is sitting at a desk.
China’s Foreign Minister Wang Yi held a rare press conference on the sidelines of the NPC [Pedro Pardo/AFP]

The Financial Times reported that officials from some of China’s indebted state provinces met state bankers on the sidelines of the Congress.

Looking outwards

Without the customary press conference, China removed one of the few avenues open to foreign media trying to understand where China sees itself in the world.

However, while Li did not address the media, Foreign Minister Wang Yi held a press conference last week on the sidelines of the NPC.

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The room was full and Wang fielded questions from reporters from publications in countries including Egypt, Russia and the US.

Wang said there had been “some improvement in China-US relations” since Chinese President Xi Jinping and US President Joe Biden met in San Francisco last year, after a deterioration of ties as a result of differences over issues from trade to Taiwan and an alleged Chinese spy balloon.

Asked about China’s relationship with Russia in light of Moscow’s invasion of Ukraine, he described Beijing and Moscow’s closer relationship as a “strategic choice”, noting that bilateral trade had reached a record $240bn in 2023.

“New opportunities” lay ahead, he added, portraying the two countries’ ties as a “new paradigm” in the relations between big powers.

“Major countries should not seek conflict and the Cold War should not be allowed to come back,” Wang said.

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Wang Yi also took questions on Israel’s war on Gaza, calling for an immediate ceasefire and telling journalists that China would support Palestine’s “full” membership of the United Nations.

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US military launches strikes in Syria targeting Islamic State fighters after American deaths

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US military launches strikes in Syria targeting Islamic State fighters after American deaths

WASHINGTON (AP) — The Trump administration launched military strikes Friday in Syria to “eliminate” Islamic State group fighters and weapons sites in retaliation for an ambush attack that killed two U.S. troops and an American civilian interpreter almost a week ago.

A U.S. official described it as “a large-scale” strike that hit 70 targets in areas across central Syria that had IS infrastructure and weapons. Another U.S. official, who also spoke on condition of anonymity to discuss sensitive operations, said more strikes should be expected.

“This is not the beginning of a war — it is a declaration of vengeance. The United States of America, under President Trump’s leadership, will never hesitate and never relent to defend our people,” Defense Secretary Pete Hegseth said on social media.

The new military operation in Syria comes even as the Trump administration has said it’s looking to focus closer to home in the Western Hemisphere, building up an armada in the Caribbean Sea as it targets alleged drug-smuggling boats and vowing to keep seizing sanctioned oil tankers as part of a pressure campaign on Venezuela’s leader. The U.S. has shifted significant resources away from the Middle East to further those goals: Its most advanced aircraft carrier arrived in South American waters last month from the Mediterranean Sea.

Trump vowed retaliation

President Donald Trump pledged “very serious retaliation” after the shooting in the Syrian desert, for which he blamed IS. Those killed were among hundreds of U.S. troops deployed in eastern Syria as part of a coalition fighting the militant group.

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During a speech in North Carolina on Friday evening, the president hailed the operation as a “massive strike” that took out the “ISIS thugs in Syria who were trying to regroup.”

Earlier, in his social media post, he reiterated his backing for Syrian President Ahmad al-Sharaa, who Trump said was “fully in support” of the U.S. effort.

Trump also offered an all-caps threat, warning IS against attacking American personnel again.

“All terrorists who are evil enough to attack Americans are hereby warned — YOU WILL BE HIT HARDER THAN YOU HAVE EVER BEEN HIT BEFORE IF YOU, IN ANY WAY, ATTACK OR THREATEN THE U.S.A.,” the president added.

The attack was conducted using F-15 Eagle jets, A-10 Thunderbolt ground attack aircraft and AH-64 Apache helicopters, the U.S. officials said. F-16 fighter jets from Jordan and HIMARS rocket artillery also were used, one official added.

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U.S. Central Command, which oversees the region, said in a social media post that American jets, helicopters and artillery employed more than 100 precision munitions on Syrian targets.

How Syria has responded

The attack was a major test for the warming ties between the United States and Syria since the ouster of autocratic leader Bashar Assad a year ago. Trump has stressed that Syria was fighting alongside U.S. troops and said al-Sharaa was “extremely angry and disturbed by this attack,” which came as the U.S. military is expanding its cooperation with Syrian security forces.

Syria’s foreign ministry in a statement on X following the launch of U.S. strikes said that last week’s attack “underscores the urgent necessity of strengthening international cooperation to combat terrorism in all its forms” and that Syria is committed “to fighting ISIS and ensuring that it has no safe havens on Syrian territory and will continue to intensify military operations against it wherever it poses a threat.”

Syrian state television reported that the U.S. strikes hit targets in rural areas of Deir ez-Zor and Raqqa provinces and in the Jabal al-Amour area near the historic city of Palmyra. It said they targeted “weapons storage sites and headquarters used by ISIS as launching points for its operations in the region.”

IS has not said it carried out the attack on the U.S. service members, but the group has claimed responsibility for two attacks on Syrian security forces since, one of which killed four Syrian soldiers in Idlib province. The group in its statements described al-Sharaa’s government and army as “apostates.” While al-Sharaa once led a group affiliated with al-Qaida, he has had a long-running enmity with IS.

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The Americans who were killed

Trump this week met privately with the families of the slain Americans at Dover Air Force Base in Delaware before he joined top military officials and other dignitaries on the tarmac for the dignified transfer, a solemn and largely silent ritual honoring U.S. service members killed in action.

The guardsmen killed in Syria last Saturday were Sgt. Edgar Brian Torres-Tovar, 25, of Des Moines, and Sgt. William Nathaniel Howard, 29, of Marshalltown. Ayad Mansoor Sakat, of Macomb, Michigan, a U.S. civilian working as an interpreter, also was killed.

The shooting near Palmyra also wounded three other U.S. troops as well as members of Syria’s security forces, and the gunman was killed. The assailant had joined Syria’s internal security forces as a base security guard two months ago and recently was reassigned because of suspicions that he might be affiliated with IS, Interior Ministry spokesperson Nour al-Din al-Baba has said.

The man stormed a meeting between U.S. and Syrian security officials who were having lunch together and opened fire after clashing with Syrian guards.

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Associated Press writer Abby Sewell in Beirut, Lebanon, contributed.

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Putin says Russia won’t launch new attacks on other countries ‘if you treat us with respect’

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Putin says Russia won’t launch new attacks on other countries ‘if you treat us with respect’

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Russian President Vladimir Putin said Friday that Moscow would refrain from launching new attacks on other nations provided his country is treated “with respect.”

The Kremlin made the remarks during his annual televised press conference in Moscow as concerns persist among European nations that Russia poses a security threat, Agence France-Presse (AFP) reported.

“Will there be new special military operations? There will be no operations if you treat us with respect, if you observe our interests, just as we have constantly tried to observe yours,” Putin said.

TRUMP TOUTS ‘TREMENDOUS PROGRESS’ BUT SAYS HE’LL MEET PUTIN AND ZELENSKYY ‘ONLY WHEN’ PEACE DEAL IS FINAL

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Russian President Vladimir Putin speaks during his annual news conference and call-in show at Gostiny Dvor in Moscow Friday, Dec. 19, 2025.  (AP Photo/Pavel Bednyakov)

Putin uses the phrase “special military operation” to describe Russia’s offensive in Ukraine, according to AFP.

He added there would be no further Russian invasions “if you don’t cheat us like you cheated us with NATO’s eastward expansion,” according to the BBC.

The Russian leader also claimed he was “ready and willing” to end the war in Ukraine “peacefully,” though he offered few details suggesting a willingness to compromise, the BBC reported.

PUTIN CLAIMS ‘TROOPS ARE ADVANCING,’ WILL ACHIEVE GOALS AS EU APPROVES MASSIVE UKRAINE LOAN

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Russian President Vladimir Putin listens to a reporter’s question during his annual news conference and call-in show at Gostiny Dvor in Moscow Friday, Dec. 19, 2025.  (Alexander Kazakov, Sputnik, Kremlin Pool Photo via AP)

The yearly news conference, which typically runs at least four hours, features questions from reporters and members of the public across Russia. 

More than 2.5 million questions were submitted for this year’s event, which focused heavily on the war in Ukraine, Reuters reported.

Putin also noted during the event that the nation’s “troops are advancing” and expressed confidence that Russia will accomplish its objectives through military means if Ukraine does not assent to Russia’s terms during peace talks, according to The Associated Press.

PUTIN DOUBLES DOWN ON BACKING MADURO AMID MOUNTING US PRESSURE ON VENEZUELA

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Russian President Vladimir Putin, left, thanks a group of volunteers who worked to prepare his call-in show at Gostiny Dvor in Moscow Friday, Dec. 19, 2025. (Alexander Kazakov, Sputnik, Kremlin Pool Photo via AP)

“Our troops are advancing all across the line of contact, faster in some areas or slower in some others, but the enemy is retreating in all sectors,” Putin declared.

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As the war drags on, the European Union has just agreed to provide Ukraine with a loan of over $105 billion.

Fox News Digital’s Alex Nitzberg contributed to this report.

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How the reparations loan for Ukraine fell apart at the eleventh hour

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How the reparations loan for Ukraine fell apart at the eleventh hour

It was so bold that, at times, it seemed impossible — and in the end, it was.

The European Union’s attempt to channel the immobilised assets of the Russian Central Bank into a zero-interest reparations loan failed when the bloc’s 27 leaders, faced with a leap into the unknown, chose to support Ukraine’s resistance with the tried-and-tested method of joint debt.

“If you take money from (Russian President Vladimir) Putin, you are exposed,” said Belgian Prime Minister Bart De Wever, the chief opponent of the reparations loan, explaining its failure. “If you’re exposed, then people like certainty, and where can you find certainty? In charted waters.”

The bloc will now go to the markets to raise €90 billion on its own, without touching the €210 billion in Russian assets, which will remain immobilised until Moscow ceases its war of aggression and compensates Kyiv for the damages.

The choice means that there will be no reparations loan — and not what the European Commission had promised to Ukraine, a complex proposal that advocates thought ingenious and detractors said was foolhardy.

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Euronews has pieced together the events of the last four months to understand how and why the reparations loan spectacularly fell apart.

September: The pitch

The first appearance of the loan proposal dates back to 10 September, when European Commission President Ursula von der Leyen delivered her hour-long State of the EU speech in Strasbourg.

There she proposed using the cash balances from the immobilised Russian assets held in the EU to issue a reparations loan to support Ukraine. She did not provide any details at the time.

“This is Russia’s war. And it is Russia that should pay,” von der Leyen said. “It should not only be European taxpayers who bear the brunt.”

But it was not von der Leyen who would define what was about to become the most energy-consuming political debate of 2025. It was German Chancellor Friedrich Merz.

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A few days after von der Leyen’s speech, he published an opinion piece in the Financial Times that offered a full endorsement of the project, presenting it as a foregone conclusion despite its lack of precedent.

“That decision should, ideally, be unanimous,” he wrote. “Failing that, it should be adopted by the large majority of member states who are firmly committed to Ukraine.”

The so-called “Merz op-ed” caught diplomats and officials by surprise. Some saw it as yet another example of Germany exploiting its position as the largest member state to single-handedly set the agenda for the entire bloc.

Subsequently, the Commission put forward a two-page document that outlined, in highly theoretical terms, how the initiative would work in practice.

The chain of events triggered one country in particular.

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October: The pushback

Belgium holds the bulk of the Russian assets — about €185 billion — in central securities depository Euroclear, and felt it should have been adequately consulted before the Commission’s two-page proposal was circulated.

The Belgian resistance burst into the open in October when De Wever delivered a remarkably frank press conference in Copenhagen in which he argued the reparations loan would deprive the EU of its most powerful leverage vis-à-vis the Kremlin.

“The question now is: can we eat the chicken?” De Wever said. “The first problem, of course, is that you lose the golden eggs if you eat the chickens. You have to consider that. If you put the chicken on the table and you eat it, then you lose a golden egg.”

De Wever then delineated, one by one, his demands for the untested project: bulletproof legal certainty, full mutualisation of risks and real burden-sharing among all countries holding Russian sovereign assets.

He reiterated his concerns about the plan during a closely watched summit in mid-October, where leaders hoped to endorse the reparations loan. De Wever held his ground, and the meeting ended with a vague mandate tasking the Commission to design several “options” that could meet Ukraine’s financial and military needs for 2026 and 2027.

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Von der Leyen, however, seemed to interpret the mandate as an implicit affirmation of her bold idea, which she framed as the only viable option.

“There are points to be clarified and have a deep dive,” she said at the end of the summit. “We agreed on the what, that is, the reparations loan, and we have to work on the how, how we make it possible (and) what’s the best option to move forward.”

A few days later, the EU’s three Nordic leaders publicly ruled out issuing joint debt to support Ukraine. Danish Prime Minister Mette Frederiksen went as far as to declare that “for me, there is no alternative to the reparations loan”.

November: The shock

The inconclusive summit revealed that without Belgium’s consent, the reparations loan would not be possible. The Commission accelerated bilateral talks with De Wever’s team to address the sticking points and sketch out a landing zone.

On 17 November, von der Leyen sent leaders a letter detailing three options to raise €90 billion for Ukraine: bilateral voluntary contributions, joint debt and the reparations loan.

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“The options presented in this note are stark both in their design and in their implications. Clearly, there are no easy options,” she said.

The section devoted to the reparations loan was explicitly written to mitigate the Belgian concerns. It addressed two of De Wever’s key demands: providing “legally binding, unconditional, irrevocable and on-demand guarantees” and securing the participation of all EU and G7 countries holding Russian sovereign assets.

The letter also acknowledged the disadvantages of the reparations loan, warning of reputational damage to the eurozone and “knock-on effects” for its financial stability.

Just as diplomats were digesting von der Leyen’s matter-of-fact assessment, a hurricane swept through Europe: the now-infamous 28-point plan drafted by US and Russian officials to end the war in Ukraine that, among other things, proposed using the immobilised assets for the commercial benefit of both Washington and Moscow.

The plan incensed European leaders, who quickly closed ranks and emphasised that any issue within European jurisdiction would require full European involvement. Rather than weakening the case for the reparations loan, the 28-point plan seemed to strengthen it.

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But then, De Wever re-entered the scene with a strongly worded letter to von der Leyen describing her blueprint as “fundamentally wrong” and riddled with “multifold dangers”.

“Hastily moving forward on the proposed reparations loan scheme would have, as collateral damage, that we, as the EU, are effectively preventing reaching an eventual peace deal,” De Wever said in the most controversial segment of the letter.

His invective revealed the chasm that still existed between Belgium and the Commission, and raised the bar even higher for a compromise.

December: The collapse

Undeterred by De Wever’s castigations, von der Leyen forged ahead and unveiled the legal texts of the reparations loan in early December — just as the European Central Bank declined to provide a liquidity backstop for the measure.

The complex proposal, which diplomats said arrived too late in the process, further expanded the guarantees to protect Belgium, erected safeguards to nullify arbitration and created an “offset” mechanism to recoup any eventual losses.

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“We want to make very sure to all our member states, but specifically also to Belgium, that we will share the burden in a fair way, as it is the European way,” von der Leyen said.

This time, the pushback came from Euroclear itself, rather than De Wever. In a statement to Euronews, the depository decried the texts as “very fragile,” describing them as excessively experimental and liable to trigger an exodus of foreign investors from the eurozone.

As uncertainty over the project deepened, the leaders of Estonia, Finland, Ireland, Latvia, Lithuania, Poland and Sweden came together in its defence.

“In addition to being the most financially feasible and politically realistic solution, it addresses the fundamental principles of Ukraine’s right of compensation for damages caused by the aggression,” they wrote in a joint statement.

High-level Commission officials, from Kaja Kallas to Valdis Dombrovskis, echoed von der Leyen’s message and framed the reparations loan as the most credible option.

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The proposal was bolstered after member states, fearing a repeat of the 28-point plan, invoked an emergency clause to indefinitely immobilise the Russian assets, something that on paper could help alleviate one of Belgium’s most pressing concerns.

Yet the momentum proved to be short-lived.

In an unexpected twist, Italy, Bulgaria and Malta joined Belgium in urging the Commission to explore “alternative solutions” to finance Ukraine with “predictable parameters” and “significantly less risks”. Separately, Andrej Babiš, the newly appointed prime minister of the Czech Republic, called on the Commission to “find other ways”.

The reservations set the scene for the make-or-break summit on 18 December.

During the closed-door talks, officials worked to address all the outstanding Belgian concerns and unblock the reparations loan. But in the end, the effort backfired, instead laying bare the scope of commitment that governments were required to undertake.

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At one point, a compromise was floated: to provide “uncapped” guarantees and reimburse “all amounts and damages” stemming from the scheme.

The wording was too much for the sleep-deprived leaders: all of a sudden, they were staring down the prospect of bailing out the entire Belgian banking system.

Faced with mounting concessions and liabilities, leaders shelved the reparations loan and opted for joint debt.

“I knew beforehand that the enthusiasm for the reparations loan was not so big as people thought it would be,” De Wever said, suggesting that von der Leyen, while doing an “excellent job,” had been misled by Germany, the Nordics and the Baltic states.

“It turned out, as I knew it would, that many more countries that hadn’t spoken yet were extremely critical of all the financial aspects of it, finding out that a simple truth: there is no free money in the world. It just does not exist.”

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