Connect with us

Asia

End subservience to the US, Varoufakis tells Australia

Published

on

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

China expands Africa arms sales, displacing France and Western rivals

Published

on

China is overtaking Western suppliers, particularly France, by expanding its exports to African nations beyond small arms, armoured vehicles, trucks, and artillery to include air defence systems, combat drones, and electronic warfare assets.

According to a report by the South China Morning Post, based on researchers and military movements across the region, African buyers are gravitating towards the advantages of quality and accessibility offered by the Beijing administration.

In April, four vehicles spotted in a Malian army convoy were identified by defence intelligence company Janes as Chinese-manufactured Yitian-L air defence systems.

In September, the Presidency of Burkina Faso published footage of military equipment inspections and testing.

Observers noted that the released footage featured a mobile surveillance radar and a missile launch vehicle belonging to the Sky Dragon family produced by Chinese company Norinco.

In August, Cote d’Ivoire also showcased Wing Loong II armed unmanned aerial vehicles procured under a contract signed in June 2024 with Chinese state-owned enterprise Catic.

A distinct shift is unfolding in the weapons procurement trajectory of Sahel countries that have ended defence cooperation with France and run into US security assistance restrictions.

Mali, Burkina Faso, and Niger formed the Alliance of Sahel States in September 2023, transitioning the structure into a confederation in July 2024.

Following the transfer of power to military authorities, these nations progressively severed ties with France and turned their attention towards new partnerships.

Western bans and budget constraints pave way for Beijing

David Shinn, a former US ambassador to Burkina Faso and Ethiopia and a specialist in China-Africa relations, pointed out that the quality of Chinese military equipment has risen and that Beijing is willing to enter markets where the West hesitates.

“Unlike many Western countries, China will sell military equipment to any country so long as it is not under a United Nations sanction,” Shinn said.

Experts speaking to the newspaper stated that high-technology defence systems, previously purchased mainly from the West and accessible to only a few countries on the continent, are now being shipped more frequently to Africa by China.

Katarina Djokic, a researcher with the Arms Transfers Programme at the Stockholm International Peace Research Institute (SIPRI), said affordable pricing, including maintenance costs, plays a critical role in procurement choices.

Djokic noted that countries maintaining good relations with the West also procure weapons from China.

According to SIPRI assessments, shipments to African nations have not yet reached a volume large enough to fundamentally alter China’s overall arms export figures.

SIPRI data for the 2021-2025 period placed China as the world’s fifth-largest supplier, accounting for a 5.6% share of global arms exports.

During this timeframe, China’s largest customer was Pakistan with a 61% share, followed by Serbia at 6.8% and Thailand at 4.7%.

In SIPRI’s records for 2020-2024, Africa accounted for 14% of China’s major arms exports, ranking as its second-largest market behind Asia and Oceania’s 77% share.

Between 2020 and 2024, the Beijing administration carried out arms sales to a total of 44 countries worldwide.

Continue Reading

Asia

Pentagon plans covert spy ring for economic war on China, report says

Published

on

The US Department of War (Pentagon) is reportedly planning to establish an extensive network of deep-cover agents to wage economic warfare against China and other adversaries of the US.

According to a report by The Washington Post citing six sources familiar with the initiative, the plan has not yet been put into effect. The newspaper reported that the initiative remains at the planning stage. The Pentagon, however, denies that any such initiative exists.

The report said the operatives would pose as entrepreneurs or private sector employees while concealing their ties to the US government. The network’s mission would be to gather economic intelligence and counter China.

The programme is led by Tom Rakusa, who spent 39 years at the CIA. Rakusa serves as a senior adviser to Deputy Secretary of Defence Steve Feinberg.

The proposed spy network is seen as part of a broader policy by the Donald Trump administration to sharpen economic competition with other countries.

The US is already resorting to tariffs, export controls, and investment in strategic sectors, alongside expanding its economic intelligence gathering.

According to The Washington Post, the new initiative demonstrates the Pentagon’s growing influence under the Trump administration. The department is currently seeking a record budget of $1.5 trillion.

Trade war flares up again with Trump’s return to the White House

The trade friction between the US and China flared up again following Donald Trump’s return to the White House. In April 2025, Washington raised tariffs on Chinese goods to as much as 145%, and Beijing retaliated with tariffs of up to 125%.

In May, US Secretary of State Marco Rubio described China as the primary geopolitical challenge facing Washington. Rubio said that to avoid war, the two sides needed to manage their conflict of interests.

In July, Chinese expert Zheng Yongnian did not simply warn that underestimating the US could prove to be a “fatal mistake”; he stated it explicitly.

According to Zheng’s assessment, the US maintains its primacy through the role of the dollar, its military superiority, and its technological advantages.

Even so, the two sides agreed in June to declare a truce and lower tariffs. In autumn 2026, the US and China extended their trade truce until 10 January 2027.

US Treasury Secretary Scott Bessent said the extension would give the parties more time to discuss economic issues.

Trade deals do not eliminate the strategic contradictions between the two countries. Financial Times columnist Rana Foroohar likened the race between the two nations for commercial, technological, and geopolitical influence to the 19th-century “Great Game” between the Russian and British empires.

Foroohar cited China’s standing in shipbuilding and commercial maritime transport, as well as its expanding footprint in overseas ports, among its key advantages.

Continue Reading

Asia

Japan plans curbs on short-term home sales to cool urban prices

Published

on

Japan’s ruling Liberal Democratic Party (LDP) plans to restrict short-term property trading to rein in surging home prices in major urban centres, particularly Tokyo.

Led by Prime Minister Sanae Takaichi, the party aims to make support for working households a core priority ahead of local elections scheduled for April next year.

The LDP’s research commission on housing and land policy met on Wednesday to discuss the issue.

According to a report by the Nikkei Asia newspaper, Commission Chair and LDP lawmaker Midori Matsushima said at the opening of the meeting: “Prices of newly built condominiums across Tokyo’s 23 wards have doubled over the past decade. We must work on measures ensuring that people who wish to live in these homes can actually afford to buy them.”

Homeownership in the capital has become virtually unattainable for broad segments of the population. According to data from the Real Estate Economic Institute, the average sale price of a newly built condominium in Tokyo’s 23 wards rose %18.5 in fiscal 2025 compared with the previous year, reaching 137.84 million yen (around $872,000).

Meanwhile, statistics from the Ministry of Labour show that the average annual income of a full-time worker in the capital remained at 6.78 million yen in fiscal 2025. This widening gap between incomes and residential property prices is directly shaping political priorities.

During its campaign for the House of Representatives election in February, the LDP pledged to curb speculative transactions across metropolitan Tokyo and other regions. Earlier this month, a party project team focused on policies concerning foreign nationals also submitted a recommendation urging the government to introduce immediate tax measures against rising home prices.

Under current legislation, profits realized from properties sold within five years of acquisition are classified as “short-term capital gains”. These returns face a tax rate approaching %40, including income tax and local inhabitant tax.

Although this rate is twice the approximately %20 levied as “long-term capital gains” tax on properties held for more than five years, several party members argue it remains insufficient to deter speculation. Calls to tighten the framework may be considered as part of the annual tax reform package to be drafted in December alongside the LDP’s coalition partner, the Japan Innovation Party.

The ruling bloc wants to present concrete housing pledges to voters heading to the polls in April across numerous urban centres, including 22 of Tokyo’s wards where local assembly terms expire.

“We need to support families with children, who are typically at the stage of purchasing a home,” a senior LDP official said.

Opposition parties are also preparing alternative proposals that target not only prospective homebuyers, but also residents forced into the rental market by high property prices and now affected by escalating rents.

Tax steps take precedence over limits on foreign buyers

Several countries seeking answers to housing affordability pressures have imposed direct restrictions on foreign purchasers. In South Korea, real estate policies played a major part in the declining public approval ratings of President Lee Jae Myung.

In August 2025, authorities in Seoul introduced an approval requirement for foreign nationals buying homes in the capital and adjacent areas, while also mandating that buyers reside in the properties for at least two years.

Canada and Australia have enacted temporary bans on foreign residential purchases, while Singapore levies a %60 additional stamp duty on foreign buyers.

The role of overseas investors in Japan’s property market also drew debate during the February election. However, restrictions aimed directly at foreign nationals are viewed as potentially conflicting with international trade and services agreements.

Consequently, rather than imposing restrictions based on the nationality of buyers, the government is discussing tax measures aimed at speculative real estate deals, such as rapid resales.

Fears that sharp market measures could shake regional banks

Concerns have also surfaced that aggressive steps to force down prices could harm the wider national economy.

A senior LDP tax official cautioned that a steep drop in land prices could weaken local financial institutions, warning: “We must consider the impact on regional banks.”

The real estate sector accounts for roughly %18 of total lending by Japanese banks. This proportion sits well above the %10 level recorded during Japan’s bubble economy of the mid-to-late 1980s.

At certain regional banks, property lending accounts for nearly half of total loan portfolios.

According to March 2025 data from the Financial Services Agency, approximately one-quarter of all loans extended by regional banks to the real estate sector are concentrated directly in Tokyo’s five central wards.

Buoyant asset valuations, supported in part by rising stock indices, have underpinned strong public approval for the Takaichi administration. Observers note that property interventions designed to cool the market could drag down equity prices and weaken the government’s standing.

A senior official on the LDP research commission stressed that decision-makers must act with caution regarding the scope and timing of any measures intended to bring price increases under control.

Continue Reading

MOST READ

Turkey