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Month: September 2024

China’s new pledges reflect concern over its competition in Africa

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Johannesburg — After pledging $51 billion in financial support for Africa over the next three years and positioning China as a fellow developing country in contrast to the West’s colonialist past, President Xi Jinping told dozens of African leaders gathered in Beijing this week that “the China-Africa relationship is now at its best in history.”

This year’s Forum on Africa-China Cooperation, held every three years, was the first since the pandemic and China’s own economic slowdown. It comes amid growing geopolitical rivalry between Beijing and the West, and Xi was blunt in his assessment of the latter’s influence on the continent.

“Modernization is an inalienable right of all countries,” he said in his opening speech to more than 50 African leaders. “But the Western approach to it has inflicted immense sufferings on developing countries.”

Lucas Engel, an analyst with the Global China Initiative at Boston University, said China is reacting to increased competition in the region.

“Xi’s reminder of the ‘immense suffering’ inflicted on Africa by the West in his keynote speech this year is a sharper rebuke of Africa’s Western partners than we’ve seen in the past,” he told VOA. “It is likely that China is feeling the heat as Western partners ramp up cooperation with Africa.”

The theme of FOCAC 2024 was “joining hands to promote modernization,” and analysts told VOA beforehand they expected China to focus on green technology and the green energy transition, agricultural modernization and trade, and education and training.

The money announced was an increase on the $40 billion pledged at the last FOCAC, in 2021, but still fell short of previous pledges, such as the $60 billion earmarked for Africa in 2018 and 2015.

For some time, China has been seen to be moving away from the massive infrastructure projects of the early years of Xi’s trademark Belt and Road Initiative and toward what it has dubbed “small is beautiful projects.”

Some of the announcements made at FOCAC, however, surprised analysts by bucking that trend.

Xi announced China would be undertaking a $1 billion upgrade of the TAZARA railway, which will link mineral-rich, landlocked Zambia with Tanzania’s coast. He signed an agreement with the presidents of those two countries on Wednesday.

“There was already a sense that infrastructure would be one of those asks that would not be entertained by the Chinese side, so I think that has come as a bit of a surprise,” Paul Nantulya, a research associate with the Africa Center for Strategic Studies in Washington, told VOA.

“I think African countries were also quite concerned about infrastructure financing. … Now it seems like the Chinese side may have finally backed down,” said Nantulya, who was in Beijing for FOCAC. “That would indicate that China does not want to be locked out of the infrastructure game, given what the U.S. is doing with the Lobito Corridor.”

Nantulya was referring to the G7-backed strategic economic corridor that Washington says is designed to create jobs and enhance export potential for resource-rich Angola, the Democratic Republic of the Congo and Zambia. As the first big infrastructure project in Africa the U.S. has undertaken in a generation, Washington recently announced it could extend the railway to Tanzania and on to the Indian Ocean.

“China’s offer to refurbish the TAZARA railway connecting copper-rich Zambia with Tanzania on Africa’s eastern coast appears to be a direct answer to the Western-led Lobito Corridor,” said Engel of Boston University.

Did African leaders get what they wanted?

China was not the only country with an agenda at FOCAC, as African leaders also laid out their priorities for relations with their largest trading partner.

For South African President Cyril Ramaphosa, who leads the continent’s most developed economy, the primary aim was to reduce a long-standing trade imbalance and to get China to import more agricultural products. He also wants to see more value-added exports made in South Africa.

Ramaphosa embarked on a state visit to China ahead of FOCAC and made several announcements, including that South Africa would sign up for China’s Beidou satellite navigation system and inviting Chinese electric vehicle company BYD to use South Africa as a manufacturing hub.

Xi said China would in turn expand market access to African agricultural products and exempt 33 countries from import tariffs. He also announced that China would support 60,000 vocational training opportunities for Africans.

Nantulya said there seemed to be a lot of attention to detail regarding this year’s announcements.

“What that tells me is that the Chinese side has been responding to the African side,” he said. “You know, the African delegates are very mindful of the fact that one of the big criticisms of FOCAC is that it’s very high on pledges and very low on actual concrete tasks.”

Yunnan Chen, a researcher at London-based research group ODI, told VOA the pledged areas of cooperation spanned almost every sector.

“I think what’s interesting to note about them is this very striking emphasis on areas of technological cooperation — in industry, in agriculture, in science and technology,” she said.

“There’s a lot of emphasis on training and initiatives that would support knowledge transfer from China to African parties, and I think this is something that’s been very much an African demand for many years,” she added.

“Even though we have seen a decline in Chinese financing in Africa and we know that China is experiencing a lot of domestic financial troubles, there’s still a very clear and very emphatic political commitment,” she said.

Aside from Ramaphosa’s trade demands, other African leaders who held bilateral meetings with Xi had specific areas of concern.

Kenyan President William Ruto had infrastructure at the top of his list, asking that Beijing fund an extension of Kenya’s Chinese-built Standard Gauge Railway. It marked a sharp change from Ruto’s campaign rhetoric, in which he criticized his predecessor’s policy of taking Chinese loans.

Ruto made the request even though Kenya is heavily in debt to Western financial institutions such as the IMF and lenders such as China and has been experiencing violent anti-government protests.

Other key areas of cooperation announced at the conclusion of FOCAC included the military and security sectors, with Beijing vowing to allocate some $140 million in military assistance grants alongside training programs for thousands of military personnel from across the continent.

Green energy was also a focus, with Xi announcing China would launch 30 new clean energy projects on the continent.

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US IRS enforcement efforts recover $1.3 bln in unpaid taxes, Treasury says 

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Washington — The U.S. Treasury and Internal Revenue Service said on Friday that they have recovered $1.3 billion in unpaid taxes from wealthy individuals under new enforcement initiatives funded by $60 billion in IRS modernization spending from the climate-focused Inflation Reduction Act.  

Why it’s important 

Republicans in Congress have long vowed to rescind the 10-year IRS funding passed in 2022, arguing that it would unfairly harass Americans on their taxes. Republican presidential candidate Donald Trump vowed on Thursday to rescind all unspent funds from the Inflation Reduction Act, which include billions of dollars earmarked for the IRS.  

The IRS has planned to spend about $10.6 billion of those funds through end of the 2024 fiscal year, which concludes on Sept. 30, leaving nearly $50 billion that could be recouped. But budget forecasters say that doing so would increase the federal budget deficit by more than $100 billion over a decade because the agency would forego stepped-up enforcement.  

By the numbers  

The Treasury said that in the first six months of a new initiative to target 125,000 wealthy individuals who have not filed tax returns since 2017, it has collected $172 million from 21,000 non-filing taxpayers.  

Another initiative to target wealthy individuals with more than $1 million in income and $250,000 in unpaid, recognized tax debts has brought in $1.1 billion to Treasury coffers.   

U.S. Treasury Secretary Janet Yellen said the audit rate for millionaires fell by 80% due to budget cuts at the IRS.  

“During the previous [Trump] administration, as audit rates on high-income taxpayers fell, the share of audits on taxpayers with incomes under $200,000 increased,” Yellen said in remarks to be delivered at an IRS service center in Austin, Texas. “In 2019, the top one percent of Americans was estimated to owe over one-fifth of unpaid taxes, leaving ordinary Americans to shoulder the burden.” 

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US job growth misses expectations in August; unemployment rate slips to 4.2% 

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Washington — U.S. employment increased less than expected in August, but a drop in the jobless rate to 4.2% suggested an orderly labor market slowdown continued and probably did not warrant a big interest rate cut from the Federal Reserve this month.  

Nonfarm payrolls increased by 142,000 jobs last month after a downwardly revised 89,000 rise in July, the Labor Department’s Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast payrolls increasing by 160,000 jobs after a previously reported 114,000 gain in July. Estimates ranged from 100,000 to 245,000 jobs.  

The smaller-than-expected increase in payrolls likely does not signal a deterioration in labor market conditions.  

August payrolls have a tendency to initially print weaker relative to the consensus estimate and recent trend before being revised higher later. Hiring typically picks up in the education sector, which is anticipated by the model that the government uses to strip out seasonal fluctuations from the data.  

The start of the new school year, however, varies across the country, which can throw off the so-called seasonal factors. The initial August payrolls counts have been revised higher in 10 of the last 13 years. Layoffs remain at historic low levels.  

The drop in the unemployment rate followed four straight monthly increases, which had lifted it near a three-year high of 4.3% in July. Early on Friday, financial markets saw a roughly 43% probability of a half-point rate cut at the Fed’s Sept. 17-18 policy meeting, according to CME Group’s FedWatch Tool. The odds of a 25 basis point rate reduction were around 57%.  

Average hourly earnings increased 0.4% in August after falling 0.1% in July. Wages increased 3.8% year-on-year after advancing 3.6% in July. Still-solid wage growth continues to underpin the economy through consumer spending. 

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У США російського телеведучого, який був радником Трампа, звинуватили в порушенні санкцій

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З обвинувального висновку випливає, що подружжя Саймсів брало участь у схемі з обходу санкцій США на користь російської телекомпанії «Перший канал», а також у відмиванні коштів, отриманих у результаті цієї схеми

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Categories: Новини, Світ

Білий дім закликав Путіна «перестати втручатися» у вибори в США після його заяви про підтримку Гарріс

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«Єдині люди, які повинні визначати, хто буде наступним президентом Сполучених Штатів, – це американський народ, і ми були б дуже вдячні, якби пан Путін: а) перестав говорити про наші вибори і б) перестав у них втручатися»

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Categories: Новини, Світ

У МЗС застерегли МВФ від співпраці з Росією: «було б абсурдом легітимізувати російський режим»

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«Звертаємося до всіх ключових стейкхолдерів, країн-членів і менеджменту МВФ із закликом ще більше ізолювати державу-агресора і не відновлювати діалог, допоки РФ вбиває цивільних, дітей, руйнує не лише Україну, а й міжнародні правила і принципи загалом»

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Categories: Новини, Світ

Віцепрем’єр Сербії запевнив Путіна – Белград є «союзником Росії»

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Минулого тижня президент Сербії Александар Вучич, виступаючи в Празі на міжнародному безпековому форумі Globsec, відкинув твердження, нібито він підтримує тісні зв’язки з російським президентом Володимиром Путіним

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Categories: Новини, Світ

США, Ізраїль та Єгипет обговорюють моніторинг на кордоні з Газою – FT

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Міністр зі стратегічних питань Ізраїлю Рон Дермер заявив агентству Bloomberg, що ізраїльська сторона готова до переговорів щодо контролю над Філадельфійським коридором, але тільки після закінчення війни з угрупованням «Хамас»

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Categories: Новини, Світ

Після виявлення мертвим «російського кита-шпигуна» призначили розтин

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За словами представника Норвезького ветеринарного інституту, тіло Хвалдіміра відправили на розтин, а звіт із результатами очікують приблизно через три тижні

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Categories: Новини, Світ

US trade deficit widens to two-year high on imports

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WASHINGTON — The U.S. trade deficit widened to the highest level in more than two years in July as businesses likely front-loaded imports in anticipation of higher tariffs on goods, suggesting trade could remain a drag on economic growth in the third quarter.

While the surge in imports reported by the Commerce Department on Wednesday would subtract from gross domestic product, it was an indication of strong domestic demand and inconsistent with financial market fears of a recession.

“The July trade data suggest that net trade will weigh on third-quarter GDP growth, but that is hardly cause for concern when it reflects the continued strength of imports, painting a better picture of domestic demand than renewed recession fears would suggest,” said Thomas Ryan, North America economist at Capital Economics.

The trade gap increased 7.9% to $78.8 billion, the widest since May 2022, the Commerce Department’s Bureau of Economic Analysis said.

The government revised the trade data from January through June 2024 to incorporate more comprehensive and updated quarterly and monthly figures.

Imports increased 2.1% to $345.4 billion. Goods imports rose 2.3% to $278.2 billion, the highest since June 2022. They were boosted by an increase in capital goods, which increased $3.3 billion to a record high, mostly reflecting computer accessories.

Imports of industrial supplies and materials, which include petroleum, increased $2.8 billion. There were also rises in imports of nonmonetary gold-finished metal shapes.

President Joe Biden’s administration has announced plans to impose steeper tariffs on imports of Chinese electric vehicles, batteries, solar products and other goods.

The government said last week a final determination will be made public in the “coming days.” There are also fears of even higher tariffs on Chinese imports should former President Donald Trump return to the White House after the November 5 election.

The politically sensitive goods trade deficit with China increased $4.9 billion to $27.2 billion. Exports to China fell $1.0 billion while imports advanced $3.9 billion.

“Imports of goods from China increased, which shows how difficult it will be to direct U.S. manufacturers away from their dependence on lower-cost goods originating from China if that is what Congress and political candidates wish to do,” said Christopher Rupkey, chief economist at FWDBONDS.

Exports gained 0.5% to $266.6 billion. Goods exports climbed 0.4% to $175.1 billion. Exports of motor vehicles, parts and engines decreased $1.7 billion to the lowest since June 2022. Consumer goods exports fell $800 million.

Exports of capital goods surged $1.8 billion to a record $56.1 billion, boosted by semiconductors.

The goods trade deficit increased 6.9% to $97.6 billion after adjusting for inflation.

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США планують звинуватити Росію у спробі вплинути на вибори 2024 року – ЗМІ

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Згідно з повідомленнями, Кремль використовував такі засоби масової інформації, як RT, колишня Russia Today, і підтримувані ним онлайн-платформи, щоб поширювати дезінформацію серед виборців США

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Categories: Новини, Світ

UN: Workers see dramatic fall in share of global income

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Geneva — Workers have seen their slice of the global income pie shrink significantly over the past two decades, swelling inequality and depriving the combined labor force of trillions, the U.N. said Wednesday. 

The United Nations’ International Labor Organization said that the global labor income share — or the proportion of total income in an economy earned by working — had fallen by 1.6 percentage points since 2004. 

“While the decrease appears modest in terms of percentage points, in 2024 it represents an annual shortfall in labor income of $2.4 trillion compared to what workers would have earned had the labor income share remained stable since 2004,” the ILO said in a report. 

The study highlighted the COVID-19 pandemic as a key driver of the decline, with almost half of the reduction in labor income share taking place during the pandemic years of 2020-2022.  

The global crisis exacerbated existing inequalities, particularly as capital income has continued to concentrate ever more among the wealthiest, it said. 

“Countries must take action to counter the risk of declining labor income share,” Celeste Drake, the ILO deputy director-general, said in a statement. 

“We need policies that promote an equitable distribution of economic benefits, including freedom of association, collective bargaining and effective labor administration, to achieve inclusive growth, and build a path to sustainable development for all.” 

Deepening inequality

The ILO stressed that technological advances, including automation, were a key driver of the declines in labor income share. 

“While these innovations have boosted productivity and output, the evidence suggests that workers are not sharing equitably from the resulting gains,” the U.N. labor agency said. 

It voiced particular concern that the artificial intelligence boom risked deepening inequality further.  

“If historical patterns were to persist… the recent breakthroughs in generative AI could exert further downward pressure on the labor income share,” the report said, stressing “the importance of ensuring that any benefits of AI are widely distributed”. 

The ILO found that workers currently rake in just 52.3 percent of global income, while capital income — earned by owners of assets like land, machines, buildings and patents — accounts for the rest. 

Since capital income tends to be concentrated among wealthier individuals, the labor income share is widely used as a measure of inequality. 

It also helps measure progress towards the U.N. sustainable development goal aimed at significantly reducing inequality between and within countries between 2015 and 2030. 

“The report indicates slow progress as the 2030 deadline approaches,” ILO said. 

The report also emphasized the stubbornly high incidence of young people who are not in employment, education or training (NEET). 

Since 2015, the global percentage has slipped slightly, from 21.3% to 20.4% this year. 

But there are major regional differences, with a third of youth in Arab states and nearly a quarter in Africa falling into the NEET category.  

The report also highlighted a large gender gap, with the global NEET incidence among young women standing at 28.2% — more than double the 13.1% seen among young men. 

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