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Xi Jinping champions economic diversification during Macau visit

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During a three-day visit to Macau commemorating the 25th anniversary of its return to Chinese sovereignty from Portugal, President Xi Jinping emphasized the importance of economic diversification and maintaining the “one country, two systems” framework.

Speaking at the swearing-in ceremony for Macau’s new Chief Executive Officer, Sam Hou-fai, Xi urged the administration to make economic diversification the city’s primary focus. Sam, the fourth leader since the 1999 handover and the first mainland-born Chinese official to hold the position, is expected to align closely with Beijing’s objectives to reduce Macau’s reliance on gambling. The gambling industry, which accounts for approximately 80% of Macau’s tax revenue, has been the cornerstone of its rapid economic growth in recent years.

“Macau should prioritize proper economic diversification,” Xi stated, calling for enhanced policy support and investment in emerging sectors. He also reiterated the significance of the “one country, two systems” principle, stressing its role in ensuring the city’s “prosperity and stability” for the long term.

Xi’s visit included stops at the Macau University of Science and Technology, where he explored laboratories focusing on traditional Chinese medicine and planetary science. He also attended a cultural performance at the Macau Dome and met with local stakeholders, according to Chinese state media. His trip marked a shift in tone, with Anthony Lawrence, founder of Intelligence Macau, noting that it was the first time Xi publicly praised Macau for its progress rather than delivering critiques or instructions.

Since the liberalization of Macau’s gaming monopoly in 2002, the city has attracted significant foreign investment, including from prominent US casino operators such as Las Vegas Sands, MGM, and Wynn Resorts. However, the economy struggled during the COVID-19 pandemic due to travel restrictions, and recovery has only recently begun.

On Friday, Macau’s casinos were bustling with visitors, while non-gaming initiatives like a stamp exhibition co-organized by MGM China and Beijing’s Palace Museum showcased the city’s efforts to diversify its offerings.

ASIA

Syria will not follow Afghanistan’s Taliban model of governance

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In an astonishing statement, Ahmed Shará, also known as Abu Mohamad Jolani, the leader of the Hayat Tahrir al-Sham (HTS) said that he will allow the girls to go to schools and will not turn Syria like Afghanistan under the rule of the Taliban.

Jolani, the de facto ruler of Syria, said that he will distance himself from the Taliban’s strict policies on women’s rights, and said that Syria will not follow the Taliban’s mode of governance.  

Jolani, who brought down the government of Bashar al-Assad and also widely welcomed by the Taliban, said that he believes in the education of women and girls and will not make Syria like Afghanistan.

“Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal. The Afghan model cannot be applied here,” Jolani told a BBC reporter.

Jolani says that Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal.

Jolani’s comment came when the Taliban congratulated the HTS-led victory by Jolani over Assad’s regime after years of fighting. The Afghan Foreign Ministry celebrated Jolani’s victory through a statement and hoped Jolani can bring peace and stability in the country.

“It is hoped that the power transition process is advanced in a manner that lays the foundation of a sovereign and serve-oriented Islamic government in the line with the aspiration of the Syrian people; that unifies the entire population without discrimination and retribution through adoption of a general assembly; and a positive foreign policy with world countries the safeguard Syria from a threat of negative rivalries of foreign actors and creates conditions for the return of millions of refugees,” the statement by Taliban Foreign Ministry.

However, Jolan’s position on the rights of women and girls is in great contrast with the current view of the Taliban leadership. Women and girls have been banned from education and work since the return of the Taliban in August 2021, following the collapse of the Republic System and withdrawal of the US troops from Afghanistan. Girls and women are even banned from medical institutions and visiting public spaces.

Jolani says he has a plan to create a government based institution and a council chosen by the people. 

The situation got worse when the Taliban’s Ministry for the Promotion of Virtue and Prevention of Vice called women’s voices “immodest” compounding their exclusion from public life. This year, it has been marked as three years since girls were banned from pursuing education over sixth grade. Besides that, on December 20, 2022, the Taliban’s Ministry of Higher Education announced that women would be barred from attending public and private universities.    

In an interview with CNN, Jolani said that he has a plan to create a government based on institutions and a “council chosen by the people.”

“When we talk about objectives, the goal of the revolution remains the overthrow of this regime. It is our right to use all available means to achieve that goal,” said Jolani.

“The seeds of the regime’s defeat have always been within it… the Iranians attempted to revive the regime, buying it time, and later the Russians also tried to prop it up. But the truth remains: this regime is dead.”

Moreover, he also said the Syrian people are the “rightful owners” of the country after the ouster of Assad, and declared a “new history” has been written for the entire Middle East.

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Yoon summoned again for questioning on treason charges

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A joint law enforcement team investigating South Korea’s martial law case announced on Friday that it has issued a second summons to ousted President Yoon Suk Yeol, requesting his presence for questioning next week. The inquiry concerns his alleged involvement in the failed implementation of martial law.

The team has scheduled the questioning for 10:00 a.m. next Wednesday at the Corruption Investigation Office for Senior Officials (CIO) headquarters in Gwacheon, located just south of Seoul. This marks the second summons after Yoon refused to cooperate with the initial notice earlier this week.

The decision to hold the questioning on a public holiday appears to be a strategic move by the CIO, likely aimed at addressing security concerns. The office confirmed that the summonses were delivered via express mail and electronically to both Yoon’s residence and the presidential office in Yongsan. Notably, after Yoon’s team refused to accept the first subpoena, the CIO opted against delivering the documents in person for this round.

The investigation focuses on Yoon’s role in the December 3 martial law declaration, which he revoked following a vote in the National Assembly. If Yoon continues to disregard the summons without valid justification, the CIO may seek a court order to detain him for up to 48 hours.

Yoon faces allegations of sedition and abuse of office, charges that have gained traction since his dismissal by parliament last Saturday. His suspension from office remains in effect pending a decision by the Constitutional Court, which will determine whether he is permanently removed or reinstated.

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Bank of Japan remains silent amid economic concerns

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The Bank of Japan (BOJ) Governor, Kazuo Ueda, showed little urgency during a press briefing on Thursday regarding the weakening yen, dampening expectations for any immediate monetary tightening. Earlier in the day, the BOJ maintained its key interest rate at 0.25%, extending the status quo for the third consecutive policy meeting.

The yen is nearing levels last seen during Japan’s intervention in April and May to stabilize its currency against the dollar. However, Governor Ueda downplayed such concerns, stating, “Import inflation is relatively stable on an annual basis.” This lack of immediate action has left markets uncertain about the BOJ’s next move.

Market participants had speculated on a possible rate hike during the BOJ’s two-day meeting, but Ueda emphasized the need for more data. “One of the reasons we were cautious about raising rates this time was that we decided we needed a little more information on the momentum behind wage increases, which the BOJ sees as key to sustaining 2% inflation,” Ueda explained.

Tomoaki Shishido, an interest rate strategist at Nomura Securities, described Ueda’s stance as “extremely dovish,” noting that it reduced the likelihood of a rate hike in the near term. “He did not rule out a rate hike in January, but his remarks suggest the probability is much lower than market expectations,” Shishido told Nikkei Asia.

Some speculate that Ueda’s hesitance might be a strategic move to pressure politicians into requesting a rate hike. Prominent lawmakers, including Prime Minister Shigeru Ishiba, have previously expressed resistance to such measures, given the potential economic repercussions.

The BOJ’s post-meeting statement remained largely unchanged, providing few insights into the decision to hold rates steady. It reiterated that “Japan’s economy will continue to grow at a pace above the potential growth rate due to the gradual intensification of a virtuous cycle from income to spending.” However, the statement highlighted persistent risks, such as “high uncertainties surrounding Japan’s economic activity and prices, including developments in overseas economic conditions.”

Japan’s core inflation, as estimated by the BOJ, has been slowing since late last year, currently hovering between 0.8% and 1.5%. Analysts remain divided on the timing of the next rate hike, with surveys indicating mixed expectations ranging from next month to as late as March.

The yen’s depreciation, exacerbated by the widening interest rate differential between Japan and the U.S., has led to a surge in the cost of imported goods like food and energy. This trend disproportionately affects low-income households and small businesses, intensifying calls for monetary policy adjustments.

On Wednesday, the U.S. Federal Reserve cut its interest rate for the third time this year to a range of 4.25%-4.5%. The move caused the yen to fall as low as 154.70 against the dollar, with some analysts warning it could test a 37-year low of 161 against the dollar in 2024.

The BOJ faces a delicate balancing act as it seeks to normalize monetary policy without disrupting financial markets. The last rate hike in July caused an 8% surge in the yen and triggered an 18% sell-off in Tokyo stocks. Analysts suggest this experience has made Ueda cautious about sudden policy shifts.

Looking ahead, the BOJ is monitoring wage growth and consumer inflation to determine the appropriate timing for any rate hikes. External risks, including a slowing Chinese economy and uncertainty under U.S. President-elect Donald Trump’s proposed tariffs, further complicate Japan’s economic outlook.

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