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End subservience to the US, Varoufakis tells Australia

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Former Greek finance minister Yanis Varoufakis has called on Australia to end its ‘subservience’ to the United States and rebuild its reputation as a country that ‘acts on its own’, including by turning to peaceful cooperation with China.

Speaking at the National Press Club in Canberra on Wednesday, Varoufakis, a former Greek minister who holds an Australian passport, said a diplomatic approach to Beijing would be a ‘much better way’ than buying nuclear-powered submarines that would ‘force China’s political class to close ranks around an authoritarian core’.

Varoufakis’ speech came a year after Australia, the UK and the US announced the timetable for the delivery of nuclear-powered submarines to Australia as part of the AUKUS alliance, which aims to reduce China’s influence.

Downshift in expectations for deal

Expectations for the deal were dampened by reports that Washington was planning to slow down submarine production.

The new defence budget of President Joe Biden’s administration has halved submarine production, reducing Virginia-class submarine production from two to one by 2025.

This has raised questions about Washington’s ability to meet its commitment to sell Canberra up to five nuclear-powered vessels from the 2030s.

The latest US announcement was expected by critics of the AUKUS, such as respected Australian defence expert Hugh White, who argued that Australia did not need such submarines and that Washington’s ability to deliver them was questionable.

On Wednesday, former Australian Prime Minister Malcolm Turnbull told local media that the US would not sacrifice its own defence needs to meet Australia’s. “The Americans are not going to make their own submarine deficit worse than it already is by giving or selling submarines to Australia,” he said.

Senate inquiry into AUKUS submarine nuclear waste

Speaking at a press conference on Wednesday, Prime Minister Anthony Albanese denied that the deviation would derail Canberra’s submarine purchase plans, saying he remained committed to the purchase and pointing out that Australia’s agreement with the US and Britain had already been approved by the US Congress.

On the same day, a Senate inquiry was held in Canberra into new legislation that would allow the nationwide dumping of nuclear waste from AUKUS submarines.

Varoufakis said that using weapons such as submarines to counter Beijing’s aggression in the South China Sea was not the answer.

Citing Russia’s intervention in Ukraine, he said that current world events proved this.

“After repeated promises not to expand NATO, which have been completely violated by the West… does that justify Putin using this particular violation of promises as a weapon to invade Ukraine? I don’t think so,” he said.

“In other words, let’s be reasonable. Let’s keep diplomatic proportionality. And certainly let’s not spend A$368 billion on submarines that will be of no use to Australia, that will do nothing – it will do nothing to alleviate the threats that you’re talking about,” Varoufakis said.

‘A false perspective on a non-existent threat’

While it is right to be concerned that Beijing is ‘backtracking’ on its promises not to militarise the South China Sea, Varoufakis said diplomacy or at most ‘some military manoeuvres commensurate with the threat’ were needed.

He said Australia should only respond if there is a real provocation, such as Chinese ships entering Australian territorial waters, otherwise weapons such as AUKUS submarines ‘create a false perspective of a threat that does not exist’.

Similar warnings have been issued by former Australian officials such as former Prime Minister Paul Keating.

Varoufakis said the AUKUS deal would ‘give impetus to a new Cold War’ and that Australia would do more for its reputation by neutralising such an initiative than by participating in it.

“Australia has an obligation to defuse the new Cold War. This can only be done by ending Australia’s subservience to the US, which actively creates threats and makes us pay for protection from those threats,” he said.

Fears over loss of dollar hegemony

“Imagine an Australia that helps bring about a just peace in Ukraine instead of a senseless perpetual war… An unaligned Australia that is never neutral in the face of injustice, but at the same time does not automatically participate in every warmongering adventure its allies decide on,” Varoufakis continued.

He said Washington’s move to contain Beijing was motivated neither by Beijing’s growing military power nor by concerns that it might invade Taiwan, but by fears that US global financial dominance would be disrupted by China’s ‘cloud capital’ systems, including non-bank online payment methods.

“America’s hegemony … is entirely based on its ability to maintain its monopoly on international dollar-denominated payments,” Varoufakis said, adding that ‘this is what allows the US to make the rest of the world pay for its deficits’.

Asia

Japan diverges from G7, urging restraint in Israel-Iran conflict

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Japanese Prime Minister Shigeru Ishiba has affirmed Tokyo’s position of calling for “maximum restraint” from both Israel and Iran, despite a G7 statement earlier this week that supported Israel’s “right to self-defense.”

During a meeting of ruling and opposition party leaders on Thursday, Ishiba stated, “What the foreign minister said is the stance of the Japanese government. The G7 is the G7,” as reported by Tomoko Tamura, head of the Japanese Communist Party.

Japan, a close US ally in Asia, has long maintained friendly relations with Iran and has historically adopted a neutral approach to Middle East diplomacy, distinguishing itself from the pro-Israel stance of US administrations. Tokyo relies on the Middle East for the overwhelming majority of its crude oil imports.

G7 leaders convened in Kananaskis, Canada, and issued a statement backing Israel’s attacks on Iran. The statement affirmed Israel’s right to self-defense and condemned Iran as the “main source of regional instability and terrorism.” On June 13, when Israel’s attacks on Iran began, Japanese Foreign Minister Takeshi Iwaya declared: “The use of military force while diplomatic efforts are ongoing… is completely unacceptable and a source of deep regret. The Japanese government strongly condemns these actions.”

Iwaya added, “Japan is gravely concerned about the continuation of retaliatory attacks and strongly condemns any actions that could further escalate the situation.”

He continued, “Japan urges all parties to exercise maximum restraint and strongly calls for a de-escalation of tensions.”

During the meeting of party leaders, Tomoko Tamura, head of the Japanese Communist Party, highlighted the apparent contradiction between Iwaya’s statements and the joint G7 communiqué, suggesting the government was applying a “double standard.”

Prime Minister Ishiba responded, “What the foreign minister said is the stance of the Japanese government. The G7 is the G7.”

Meanwhile, the foreign minister announced at a press conference on Friday that a total of 87 Japanese nationals and their family members had been evacuated by land from Iran and Israel. Sixty-six individuals were evacuated from Iran to neighboring Azerbaijan, and 21 were evacuated from Israel to Jordan.

Following additional requests from Japanese citizens, a second land evacuation from Iran is scheduled for Saturday. Currently, there are approximately 220 Japanese nationals in Iran and about 1,000 in Israel.

In preparation for potential air evacuations, the government plans to dispatch two Air Self-Defense Force military transport aircraft to Djibouti in East Africa to have them on standby. With airports in Iran and Israel closed, Iwaya noted that the aircraft could be used if, for example, the airports reopen and conditions permit an airlift.

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Iran-Israel war: Why US discusses regional conflict with Pakistan

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US President Donald Trump and Pakistan’s Army Chief General Asim Munir held a special and important meeting during a time when tensions are rising in the Asian region. The meeting was held on Trump’s invitation and was not open to the media. However, both sides have released official statements afterward, which states that the main topics were discussed

The meeting focused on the ongoing conflict between Iran and Israel, Pakistan–India relations, especially the Kashmir issue, the situation in Afghanistan and future US–Pakistan cooperation.

Pakistan has recently improved its strategic position in the region. It has shown strong ties with China and is the only South Asian country openly supporting Iran in its conflict with Israel. Meanwhile, Pakistan remains an important player in Afghanistan.

Why the Pakistani Army Chief was invited to the US?

Although Pakistan has an elected civilian government, important decisions—especially related to foreign affairs and security—are often handled by the military. That’s why General Asim Munir was invited to meet Trump instead of the Prime Minister, General Munir’s influence has grown recently. After tensions with India, he was given the title of Field Marshal. His meeting with Trump is seen as a sign of his importance in both Pakistani and international politics.

According to the Pakistan Army’s media wing (ISPR): General Munir thanked President Trump for helping to ease recent tensions between Pakistan and India. Trump praised Pakistan’s role in fighting terrorism. Both agreed to work together in the future, especially in: Trade, Technology Minerals and energy Artificial intelligence Crypto currency and regional peace efforts as well.

President Trump also appreciated General Munir’s leadership during difficult times. Munir invited Trump to visit Pakistan, and Trump reportedly accepted the offer in principle.

Why US former peace envoy to Afghanistan, Khalilzad is not trusting Pakistan’s army chief

Former U.S. diplomat Zalmay Khalilzad criticized the meeting. He said General Munir cannot be trusted and reminded the U.S. that Pakistan has supported groups that harmed American soldiers in the past. According to Khalilzad, General Munir may be trying to get U.S. support for his interests in Afghanistan, which he believes could be risky for America.

Though no official list of US demands was made public, reports suggest a meeting was held in Saudi Arabia earlier, where American officials spoke with top Pakistani leaders. During that meeting, the U.S. reportedly made four key requests:  Pakistan should help the U.S. in counterterrorism operations when needed. Pakistan should slowly reduce its relations with China. Pakistan should recognize Israel after Saudi Arabia does. If the U.S. attacks Iran, Pakistan should support the U.S. instead of staying neutral.

These demands are similar to earlier U.S.–Pakistan arrangements during the Cold War and the War on Terror.

What could be expected in the future?

This meeting could mark the beginning of a new phase in US–Pakistan relations. In the past, Pakistan helped the U.S. during the Soviet-Afghan War and after 9/11. Now, with tensions involving Iran, India, and Afghanistan—and China expanding its role—the U.S. may again be looking to Pakistan as a key partner in the region.

Time will tell whether this leads to a long-term partnership or just another temporary agreement based on short-term goals.

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China pledges aid and signs friendship treaty at Central Asia summit

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China concluded its latest engagement efforts in Central Asia on Tuesday by pledging 1.5 billion yuan (US$209 million) for livelihood and development projects in the region.

The six nations participating in the second China-Central Asia Summit also signed a historic permanent friendship treaty.

“China is ready to provide 1.5 billion yuan in grant assistance to Central Asian countries this year to support livelihood and development projects of common interest to each country,” Chinese President Xi Jinping stated in his opening address at the summit in Astana, the capital of Kazakhstan.

“Additionally, China will offer 3,000 training opportunities to Central Asian countries over the next two years.”

Xi described the signing of the Permanent Good-Neighborliness and Friendly Cooperation Agreement as a milestone in relations between the six countries, calling it “an innovative initiative in China’s neighborhood diplomacy and a contribution that will benefit future generations.”

China has signed similar agreements with Russia and Pakistan.

Xi also emphasized the need for cooperation in a world that has entered “a new period of turbulence and transformation.”

State news agency Xinhua quoted Xi as saying, “There will be no winner in a tariff and trade war. Protectionists and hegemonists will harm both others and themselves.”

“The world should not be divided, but united; humanity should not revert to the law of the jungle, but work to build a common future for mankind,” he added.

Xi also announced the establishment of three cooperation centers focusing on poverty reduction, educational exchange, and desertification control, as well as a trade facilitation platform under the China-Central Asia cooperation framework.

In a statement on Wednesday, the Chinese Foreign Ministry said that China and the Central Asian countries are eager to improve road and rail connectivity and plan to open more direct flights to and from China to increase mutual exchange.

China will consider simplifying visa procedures with the five Central Asian countries, while all parties will study the feasibility of opening consulates.

Together with Kazakhstan, Kyrgyzstan, and Tajikistan, China will accelerate the modernization of existing port facilities and assess the need for new ones.

The summit was the second of its kind, following the inaugural one held two years ago in Xian, China.

These efforts reflect a deepening of China’s relations with Central Asia, which have historically focused on areas such as transportation infrastructure.

The region is a key part of the Belt and Road Initiative, Beijing’s global development strategy, and China has invested heavily in energy pipelines, infrastructure, and mining projects in Central Asia.

However, China also wants to expand cooperation into sustainable development and renewable energy.

These investments were a major focus of Xi’s meetings with the leaders of the five Central Asian states.

During the meetings, Xi stressed the need to uphold multilateralism and the global trade order. This is part of Beijing’s effort to position itself as a more reliable partner following the US tariff war.

Meeting with Turkmen President Serdar Berdimuhamedov, Xi called for expanding gas cooperation and exploring opportunities in non-resource sectors.

Security was also on the agenda.

“The two countries should further strengthen law enforcement, security, and defense cooperation, jointly combat the ‘three forces,’ and enhance cooperation in cybersecurity,” Xi said, referring to “terrorism, separatism, and extremism.”

Beijing views these forces as threats to national and regional security, and Xi has repeatedly emphasized this stance in his meetings with Central Asian leaders.

While China’s presence in Central Asia has historically focused on economic investments, its influence in the security sphere is growing through joint counter-terrorism drills, training programs, and aid.

This is particularly true in Tajikistan, which shares a long border with Afghanistan, where China is concerned about terrorists returning to carry out operations in its western Xinjiang region.

In his meeting with Tajik President Emomali Rahmon, Xi called for deeper cooperation in law enforcement and security to combat the three forces.

He also called for increasing bilateral trade and investment and improving transportation infrastructure.

Rahmon said Dushanbe would expand cooperation in new areas such as new energy, green industries, and artificial intelligence, and would “strengthen coordination with Beijing for the Shanghai Cooperation Organisation (SCO) to play a greater role.”

The SCO is the main forum for relations between China and the landlocked region. This political, economic, and security bloc was founded in 2001 by China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Turkmenistan, reflecting its commitment to “permanent neutrality,” is the only Central Asian country outside the organization.

On Tuesday, Xi also held talks with Kyrgyz President Sadyr Japarov, describing relations between the two countries as being in “the best period in history.”

Xi said the construction of the China-Kyrgyzstan-Uzbekistan railway is a top priority, but new growth drivers such as clean energy, green mining, and artificial intelligence should also be developed.

The talks followed the signing of cooperation documents between China and the summit’s host country, Kazakhstan, covering trade, investment, technology, tourism, and customs.

Xi asked his Kazakh counterpart, Kassym-Jomart Tokayev, to accelerate cross-border railway projects and the improvement of port infrastructure.

Xi also stated, “Beijing and Astana should be strong supporters of each other in turbulent times.”

According to the Kazakh presidential office, Tokayev described relations between the two countries as stable and “not negatively affected by geopolitical challenges and turmoil or the international situation.”

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