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How China could use its control on EU infrastructure to exert pressure

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How China could use its control on EU infrastructure to exert pressure

The battle in Ukraine and suspected acts of sabotage on key infrastructure are forcing European nations to rethink their method to what’s crucial, and who ought to management it.

And right here, it is not a lot Russia that European Union leaders worry, however China. 

“The best worry, I feel, is that crucial infrastructure might be taken out by China in a scenario of battle, or no less than that China may threaten us to take out the crucial infrastructure,” Dr Tim Rühlig, a analysis fellow on the German Council on Overseas Relations (DGAP), informed Euronews.

Chinese language firms personal or have stakes in a variety of European crucial infrastructure together with ports, airports, electrical energy firms, wind and photo voltaic farms in addition to telecommunications.

The increase years had been between 2012 and 2015 when Europe, within the grips of a extreme monetary disaster, took drastic austerity measures that included the sale of such massive infrastructure. 

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Now Chinese language firms personal stakes in ports in EU nations together with Greece, Italy, Portugal, Spain, Belgium, the Netherlands and Germany in addition to in airports resembling in Toulouse, France. 

But the geopolitical local weather has shifted dramatically. 

‘China turned extra authoritarian’

“The previous six, seven years have seen two issues. China turned extra authoritarian, economically much less allied with us, extra divergent,” Agatha Kratz, a director for the unbiased analysis centre Rhodium Group, informed Euronews. 

“And on the European aspect, additionally a realisation of those very, very robust variations in phrase views, financial views, political opinions,” she added. 

Such management over this sort of infrastructure already carries dangers in peacetime, together with espionage but additionally the likelihood for China to make use of these business hubs in Europe to favour their firms over regional ones. 

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However Russia’s “may is true” method is now elevating fears that ought to Moscow prevail in its battle in Ukraine, China may really feel emboldened to make use of its navy on Taiwan. 

Beijing considers the island a part of its territory and has in current months ramped up its rhetoric over the potential use of the navy.

If it does so, the EU would don’t have any selection however to impose sanctions, which Beijing would retaliate towards.

However there’s rising fear about whether or not it may use its management over EU crucial infrastructure to exert extra strain. 

‘Backdoors in hidden switches’

Bodily infrastructure, like ports and airports, is “really extra on the legal responsibility aspect for the Chinese language”, Kratz argued, as a result of it might be seized or frozen by EU nations in a interval of maximum geopolitical tensions. 

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The actual concern is over digital and Europe’s dependency on Chinese language expertise. 

“I fear extra about other forms of vulnerabilities, resembling within the case of 5G, the likelihood that it might be used for espionage or the likelihood that it might be simply turned off altogether,” Ian Bond, director of international coverage on the Centre for European Reform (CER) assume tank, informed Euronews. 

“Now we have seen fairly just lately a disruption to the German railway system that appears to have been brought on by a cyberattack. It isn’t clear who carried it out however clearly, if China is contained in the system, if it is Chinese language firms which can be establishing a few of these programs, then the alternatives for the Chinese language authorities to put in backdoors and even hidden switches are that a lot larger,” he mentioned.

On condition that Chinese language firms have stakes in European electrical grids in addition to renewable vitality fields and telecommunications programs, the potential for disruption might be large. 

However even when it had been to lose its management over European ports and airports, China may nonetheless weaponise the info from these business hubs to inflict harm. 

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“Each a seaport and airport are a part of a digital infrastructure. So no matter no matter containers undergo the seaport terminal will go away loads of information in that seaport. In case you have correct entry to it, what’s in these containers, who has shipped it there, the place it will, what the logistical chain is,” Rühlig mentioned.

“If the Chinese language have a really correct understanding of what crucial items, the form of the bottleneck of provide chains are, they might be well-equipped to have very focused sanctions the place they merely know that there could also be 5 or seven producers of a crucial good in Europe, however these 5 or seven producers may all depend on the identical provide chain after which they merely want to chop off that one level to basically put Europe into a really troublesome scenario,” he defined. 

That’s the reason the furore over the sale of a stake in a Hamburg port terminal to Cosco, China’s state-owned delivery firm, made sense. Hamburg is the third-busiest port in Europe. 

“In isolation, such an funding could seem like a restricted threat as a result of what are you able to do with the info from one seaport if there are such a lot of others? Not that a lot. However you get to a degree the place you’ve gotten a crucial mass after which I feel when you mix them and all this information, it turns into the actual threat,” Rühlig concluded.

‘The reverse isn’t potential’

So what’s Europe doing about it?

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A mechanism to display screen international investments within the EU already exists, permitting nations to boost considerations over such investments in different member states. However finally, the EU state on the receiving finish of that funding can dismiss these considerations and permit for it to proceed as this usually pertains to nationwide safety, which falls underneath the authority of governments. 

This was the case in Hamburg, the place German Chancellor Olaf Scholz backed the sale — albeit at a decrease stake — regardless of considerations from different member states and the nation’s personal intelligence companies. 

“That is one thing that might be tightened as much as make it harder for nations to say ‘I do know that my companions all assume that this creates an extra vulnerability, however I do not care, I am simply going to take the cash’ as a result of that does appear to me to be a threat,” Bond argued. 

One other argument for a more durable mechanism can also be the truth that crucial infrastructure is more and more cross-national and interconnected. 

China was additionally the subject of a three-hour dialogue among the many 27 heads of state at their final gathering in Brussels final month to find out whether or not the bloc’s present technique of contemplating Beijing a accomplice on sure points resembling local weather change, in addition to a competitor and a systemic rival, remains to be the proper method. 

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It was resumed as “the European Council held a strategic dialogue on the European Union’s relations with China” within the conclusions launched on the finish of the summit — amounting to a single line in a nine-page doc. 

Nonetheless, there seems to be rising recognition that, similar to with Russia, unity and solidarity will carry extra weight, therefore the criticism over Scholz’s journey to China on Friday, the place he was accompanied by a enterprise delegation. 

“It offers us the impression that the main target actually is financial engagement, financial cooperation, and I feel we should not do (that) any extra. That is not the sign that we’d like,” Rühlig mentioned. 

Many extra discussions and selections shall be wanted nevertheless to correctly formulate what’s crucial, and what’s acceptable by way of international possession and reciprocity. 

“We’re letting China put money into European crucial infrastructure, but China would by no means let a European firm do the identical,” Kratz underlined. “It’s a sign we’re sending that’s damaging that we’re keen to simply accept these sorts of funding, however the reverse isn’t potential.”

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Ukraine and Russia exchange drone attacks while Russia continues its push in the east

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Ukraine and Russia exchange drone attacks while Russia continues its push in the east

KYIV, Ukraine (AP) — Russia said it shot down some 60 drones and several missiles over its territory while Ukraine in turn said it destroyed over 30 Russian drones. At least four people were reported killed in an attack on the outskirts of Kharkiv on Sunday as Russia pushed ahead with its renewed offensive in Ukraine’s war-ravaged northeast.

Russian air defenses shot down 57 Ukrainian drones over the southern Krasnodar region overnight, the Russian Defense Ministry said.

Local military officials said drone debris hit an oil refinery in the town of Slavyansk-on-Kuban, but there was no fire or damage. News outlet Astra published videos appearing to show an explosion at the refinery as it was hit by a drone. The videos could not be independently verified.

Nine long-range ballistic missiles and a drone were destroyed over the Russia-occupied Crimean Peninsula, following Friday morning’s massive Ukrainian drone attack that cut off power in the city of Sevastopol.

A further three drones were shot down over the Belgorod region, which borders Ukraine. According to regional Gov. Vyacheslav Gladkov, a church roof was set on fire by falling drone debris, but there were no casualties.

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The Russian-installed governor of Ukraine’s partially occupied Kherson region, Vladimir Saldo, said that one person died and 16 were wounded when a Ukrainian drone hit a minibus on Sunday morning.

In Ukraine, air force officials said air defenses shot down all 37 Russian drones launched against the country overnight.

In the northeastern Kharkiv region, where Moscow recently launched a new offensive, regional Gov. Oleh Syniehubov said Sunday morning that one person died and 11 were wounded as a result of shelling over the previous day.

Later on Sunday, Syniehubov said four people were killed and eight wounded in a Russian strike on the outskirts of the regional capital, also called Kharkiv.

Ukrainian troops are fighting to halt Russian advances in the Kharkiv region that began late last week.

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Russian President Vladimir Putin said on Friday during a visit to China that Moscow’s offensive in the Kharkiv region aims to create a buffer zone but that there are no plans to capture the city.

——

Morton reported from London.

——

Follow AP’s coverage at https://apnews.com/hub/russia-ukraine

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Argentina's Milei shuts up critics with miracle turnaround of economy, strong security policies

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Argentina's Milei shuts up critics with miracle turnaround of economy, strong security policies

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President Javier Milei of Argentina continues to stun his critics with an economy that has outperformed expectations and continues along an ambitious path for national security, including pursuit of a NATO global partnership. 

“The fact that you have a president, head of state, who is defending the free market, who is defending the role of entrepreneurs and businessmen as creators of value and just defending deregulation when the tendency in Latin America and much of the West has been to regulate the economy . . . I think that’s very positive, not only for Argentina, but for the region as a whole and maybe beyond,” Daniel Raisbeck, a policy analyst at the CATO Institute, told Fox News Digital. 

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Milei won the presidency in November last year and prompted concern from some in the West that he would lead his country down a road to ruin with libertarian policies that would make an already troubled economy even weaker. Voters wanted economic relief from a market hit with some of the highest inflation in the world. 

Those attitudes have shifted just months later as Milei has enacted a raft of policy changes: The International Monetary Fund (IMF) agreed to release a tranche of loans due to Argentina under a bailout program thanks to Milei’s government managing to create a fiscal surplus in the previous fiscal quarter and bring inflation down. 

ARGENTINA REPORTS ITS FIRST SINGLE-DIGIT INFLATION IN SIX MONTHS AS MARKETS SWOON AND COSTS HIT HOME

President of Argentina Javier Milei gives a speech after his Inauguration Ceremony at National Congress on December 10, 2023, in Buenos Aires, Argentina.  (Marcelo Endelli/Getty Images)

Argentina’s inflation in March alone hit 287%, causing poverty to deepen, and citizens to take to the streets with strikes and protests against his policies. The monthly inflation rate was 25% in December when Milei first took office. 

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Milei then went on to significantly reduce spending with major cuts to public-sector wages as he suspended public works projects and cut subsidies. He also devalued the country’s currency by over 50%, which helped it stabilize in value even as the price of basic goods jumped. 

The monthly inflation dropped to 8.8% by April, marking the first single-digit inflation rate in over six months. 

Argentina recorded a $589 million budget surplus in January and continued to post a surplus for each of the first four months of 2024, even as the surplus shrank to $299 million in April, Reuters reported. This marks the country’s first quarterly surplus since 2008. 

Raisbeck stressed that Milei’s primary measure of cutting spending has proven highly effective, while arguing that the significant deregulation in other parts of the economy has helped it revive over those first months of the new administration. 

Argentina South America

Javier Milei of La Libertad Avanza lifts a chainsaw next to Buenos Aires province governor candidate Carolina Piparo of La Libertad Avanza during a rally on September 25, 2023, in San Martin, Buenos Aires, Argentina. (Tomas Cuesta/Getty Images)

“Argentina was one of the most regulated economies in the world,” Raisbeck said. “So when you have a very well-thought-out package like the one that they introduced . . . and you get rid of as many of those regulations as you can, then it’s very positive.”

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AT LEAST 90 INJURED AFTER PASSENGER TRAIN HITS BOXCAR, DERAILS IN ARGTENTINE CAPITAL

He noted that Milei has not adhered to some of his more aggressive campaign promises, which included a promise to dollarize the economy and shut down the Central Bank, saying that it was a “non-negotiable matter.”

Even days after he won the election, Milei appeared to favor more moderate Cabinet members than many would have expected of a man who jolted the international community with his outsider attitude and plans. 

APTOPIX-Argentina-Protest

Students protest for more public university funding and against austerity measures proposed by President Javier Milei, featured on the sign, in Buenos Aires, Argentina, Tuesday, April 23, 2024. The posters read in Spanish, “With fascism, there are no rights,” center, and “Why so much fear to educate the people?” and “Defending the university is defending the country.” (AP Photo/Natacha Pisarenko)

The Wall Street Journal, in December 2023, argued that Milei’s tenure “may turn out to be pretty conventional,” with pro-market Economy Minister Luis Caputo leading away from Milei’s more radical plans. 

The promised dollarization has been delayed, and Raisbeck explained that Milei’s approach has relied heavily on using the Central Bank to help regulate the economy, though he argued that Milei’s policies remain libertarian due to the deregulation he has pursued in other areas. 

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Argentina-Economy

A vendor waits for customers at the central market for fruit and vegetables in Buenos Aires, Argentina, Friday, May 10, 2024.  (AP Photo/Natacha Pisarenko)

“Everything related to deregulation is very libertarian, and we’ve seen great success already in the housing market, for instance,” Raisbeck said. “So that obviously brought a huge amount of supply that was suppressed because of price controls.”

Milei also brought Argentina back to the international foreground, with a stronger focus on national security and changing up the country’s goals from the previous administration – most notably, he rejected the invitation to join the China and Russia-led economic bloc BRICS. 

PERUVIAN LAWMAKERS BEGIN YET ANOTHER EFFORT TO REMOVE PRESIDENT DINA BULARTE FROM OFFICE

A man holds up a giant US dollar sign with President Argentina's President Javier Milei

A supporter holds a giant dollar bill with the face President elect Javier Milei as people start gathering outside National Congress ahead of his inauguration ceremony on December 10, 2023, in Buenos Aires, Argentina. (Marcelo Endelli/Getty Images)

Milei argued that it was not “opportune” for Argentina to join the bloc as a full member, according to German outlet DW. However, he will continue to develop ties with its members in the meantime. 

“They have a good security minister, Patricia Bullrich, who has experience because she was a security minister in the previous government,” Joseph M. Humire, the executive director of the Center for a Secure Free Society, told Fox News Digital. “She has been able to get the ball rolling very quickly, and I think that was the benefit of having her in that position.” 

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Milei supporters in Buenos Aires

Supporters of presidential candidate Javier Milei gather outside his headquarters during the presidential runoff election in Buenos Aires, Argentina, Sunday, November 19, 2023.  (AP Photo/Rodrigo Abd)

Humire explained that Milei’s government has largely focused on clearing out external agitators, particularly those connected to Russian disinformation networks, which remain a paramount concern in most parts of the world as Moscow seeks to expand its influence. 

“The external forces are usually the key,” Humire said. “Usually, it’s the Russians. The Russians have probably the biggest disinformation networks to be able to amplify local grievances and turn them into this macro instability, and they did that in Colombia, in Chile.” 

“A lot of the specifics of the nation’s security has been in mitigating these agitation networks that create chaos throughout the country, and they have been neutralizing some of these threats while they’re studying others,” he added. 

The Associated Press contributed to this report. 

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Russia-Ukraine war: List of key events, day 815

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Russia-Ukraine war: List of key events, day 815

Here is the situation on Sunday, May 19, 2024.

Fighting

  • Slavyansk oil refinery in Russia’s southern Krasnodar region halted operations following a Ukrainian drone attack overnight, Interfax news agency reported. The refinery is a private plant with a capacity of 4 million metric tonnes of oil per year, about one million barrels per day.
  • Ukraine’s air force claimed it destroyed all 37 Shahed attack drones launched by Russia overnight. The regions targeted by the drones include Kyiv, Odesa, Mykolaiv, Sumy, Vinnytsia, Zhytomyr, Cherkasy and Kherson.

  • The governor of Kharkiv said nearly 10,000 people had been forced to leave their homes since Russian forces launched a surprise ground attack on May 10. Russia claimed its military took control of another village, Staritsya, in the Kharkiv region near the Russian border.
  • Ukrainian prosecutors said Russian shelling killed a 60-year-old woman and injured three other civilians in the northeast city of Vovchansk, 5km (3 miles) from the Russian border. A 59-year-old man was also injured in the village of Ukrainske.
  • Russia said its forces shot down nine US ATACMS missiles over Crimea and at least 60 drones over Russian sovereign territory. Its forces also shot down a Tochka-U missile fired by Ukraine in Russia’s Belgorod region.
  • Belgorod regional Governor Vyacheslav Gladkov said a Ukrainian drone attack injured a woman and a man in the village of Petrovka. The two were treated for shrapnel injuries.

Politics and diplomacy

  • Ukrainian President Volodymyr Zelenskyy acknowledged issues with staffing and “morale” within the country’s troops as he signed a mobilisation law that came into force on Saturday. Kyiv has lowered the age at which men can be drafted from 27 to 25 and tightened punishments for those who avoid the call-up.
  • Ukrainian prosecutors said they were investigating as a potential war crime a Russian air attack on a residential area of the regional capital, Kharkiv, in which six civilians were wounded, including a 13-year-old girl, 16-year-old male and an eight-year-old.
  • Ukrainian officials accuse Russian soldiers in Vovchansk of using dozens of captured civilians as “human shields” to defend their command headquarters.
  • Moscow denied deliberately targeting civilians even as thousands have been killed and injured since its February 2022 invasion of Ukraine.
  • Poland announced it would spend $2.5bn to fortify its eastern border, which includes Russia, Belarus and Ukraine.
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