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G20 in the shadow of global crises

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Indonesia Island Bali is busy hosting the most strained edition of the G20, or Group 20 countries on 15 and 16 November. The annual summit will host for two days with including G20 members – Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union. The G20 was created after the Asian financial crisis in 1999, and the members consider themselves something of a superpowers club that manages future crises.

Beside political issues such as US-China tensions and Russian-Ukraine war, there are plenty of other issues on the discussion block. Soaring inflation, the ever-looming threat of a global recession, nuclear threats and perhaps most alarming of all, a rapidly warming earth are key agenda of discussions.

Amid all this ambiguity, the host and Indonesian President Joko Widodo is trying to play chief dealmaker, however, the success of the summit is in limbo.

No peace without dialogue

Of course, the host leader, Widodo will try level best to make this summit a success. He already insisted on co-existence and peace, and believes that there would be no peace in the world sans dialogue.

In fact, Widodo seemed sanguine about what has been described as the most diplomatically delicate and stressful G20 ever, but the first face-to-face meeting between US President Joe Biden and China’s leader Xi Jinping at the sidelines of the summit, have reported positive. Both sides made their best efforts to refrain from “cold war” which shows the first success of the summit.

Mr. Widodo has good relations with both Washington and Beijing as they remained as top trade partners, but in recent years China has consistently ranked as one of its top foreign investors.

Mr. Widodo is hosting the G20 summit as he is in the final stretch of his presidency as he has to stand down after two terms in the presidential palace.

Will the G20 make progress on many crippling issues?

Undoubtedly, there are plenty of issues to deal with. The COVID-19 pandemic has wrecked the global economy as it affected the supply chains. It has also slowed down global trade where even many developing countries pushed into the verge of bankruptcy.

The second headache is war in Ukraine that has created a global energy crisis and runaway inflation, prompting central banks to drastically raise interest rates.

All this is adding up to what the International Monetary Fund (IMF) is predicting will be a bad 2023 for the global economy. The 2023 slowdown will be broad-based, with countries accounting for about one-third of the global economy poised to contract this year or next, according to the IMF. It is feared that the global economy continues to face steep challenges as the IMF said that the worst is yet to come and, for many people, 2023 will feel like a recession.

This time G20 summit comes aimed political wrangling

It would not be wise to think that all the issues will be resolved in the summit. This time the world leaders are much divided on several fronts, starting from the Russia-Ukraine war to US and Middle Eastern issues and from Turkey to EU substance and so on. In such a context, it would be a difficult task on how to address these problems. The best Mr. Widodo can do in this summit is to open a window for discussions between the leaders which itself is a big development and pave the ground for face-to-face talks.

Much of G20’s work happens behind the close doors

It’s unlikely all the issues will be resolved in Bali in just two days of meetings. It has several dimensions, and needs more practical steps once promised by the world leaders to overcome it. Though there is high hope at the summit, but, in fact much of the G20’s work happens quietly behind the scenes, with leaders and high-ranking officials meeting throughout the year under a rotating presidency to address global economic challenges.

Rising tensions and deepening economic crisis have highlighted the need that these leaders should share the outcome of the summit in order to provide some relief to the anxiety of the people who are scrambling with delicate economic conditions and worried over the trend of daily inflation.

However, this year’s summit would take place in the backdrop of food and fuel prices spiking worldwide, and the renewed threat of nuclear war. There will also be one conspicuous absence around the table, Russian President Vladimir Putin. Russia is represented at the summit by Foreign Minister Sergey Lavrov.

DIPLOMACY

Chinese satellite company to challenge Musk’s Starlink in Brazil

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A Chinese state-backed company is set to launch a satellite internet service in Brazil, aiming to rival Elon Musk’s Starlink.

Spacesail, a developer of high-speed internet services via satellites in low Earth orbit (LEO), made the announcement during Chinese President Xi Jinping’s visit to Brazil. The visit marked the signing of an expanded partnership with Brazilian President Luiz Inácio Lula da Silva.

This development follows ongoing tensions between Musk, owner of SpaceX and its Starlink subsidiary, and Brazilian authorities over allegations of misinformation on his X social media network.

According to Chinese state media, Spacesail has partnered with Brazil’s state-owned Telebrás to deliver satellite communications and broadband internet to underserved areas.

A spokesperson for the Brazilian communications ministry stated that the companies would assess demand in regions lacking fiber-optic infrastructure, with plans to launch the service by 2026.

“Spacesail is committed to being Brazil’s long-term partner,” CEO Jie Zheng told reporters on Tuesday.

Musk-Lula tensions highlight Starlink’s market dominance

Brazil is actively encouraging competitors to Starlink, which controls nearly 50% of the satellite internet market in Latin America.

Earlier this year, Musk faced legal challenges in Brazil after refusing to comply with court orders to remove accounts allegedly promoting extremist content on X. This led to a temporary ban on the platform and fines for Starlink, further straining Musk’s relationship with Brazil’s left-wing government.

Tensions resurfaced recently when Brazil’s First Lady, Rosângela Lula da Silva, addressed Musk during an event on social media regulation.

Spacesail’s announcement aligns with concerns over waning U.S. influence in South America, often regarded as Washington’s “backyard.”

During his diplomatic tour, Xi Jinping attended the opening of a Chinese-built mega-port in Peru before traveling to Rio de Janeiro for the G20 summit. In Brasília, he and Lula upgraded their bilateral relationship to a “Sino-Brazilian community with a shared future”, emphasizing a fairer, more sustainable world.

The two leaders signed 37 agreements spanning agriculture, trade, infrastructure, technology, and industry. However, Brazil declined to join China’s Belt and Road Initiative (BRI), signaling confidence in securing Chinese investments without full membership.

Operating under the name Shanghai Spacecom Satellite Technology, Spacesail plans to accelerate satellite deployment with a target of 15,000 LEO satellites by 2030. The company launched its first rounds of satellites in August and October this year, showcasing its rapid growth and potential to disrupt the market.

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China refuses to meet with U.S. Defence Secretary

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China has reportedly refused to meet with the United States Defence Secretary Lloyd Austin at the ASEAN Defence Ministers Meeting-Plus in Laos this week.

According to CNN, Austin sought a meeting with his Chinese counterpart, Dong Jun, during the event as part of ongoing efforts to maintain military communication channels between the United States and the People’s Republic of China. However, a senior defence official traveling with Austin in Laos revealed that China rejected the offer, citing the recent U.S. arms sale to Taiwan as a key factor.

Three weeks ago, the United States approved a $2 billion arms deal with Taiwan, which included the provision of advanced surface-to-air missiles—marking the first time Taiwan has received such systems. China condemned the sale and vowed to take “resolute countermeasures” to protect its sovereignty.

China’s decision to decline the meeting in Laos follows just days after U.S. President Joe Biden and Chinese President Xi Jinping held what the U.S. described as a “cordial and constructive” meeting in San Francisco. National Security Adviser Jake Sullivan emphasized that the dialogue was “wide-ranging” and not focused on mediating between Beijing and the incoming U.S. administration.

Relations between the two nations have remained strained since then-House Speaker Nancy Pelosi’s visit to Taiwan in 2022, which prompted China to sever multiple lines of communication with the United States, including those related to military and climate cooperation. While military-to-military communication had recently resumed following the Biden-Xi meeting, this latest refusal highlights continued tensions in U.S.-China relations.

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G20 calls for more aid for Gaza, two-state solution and peace in Ukraine

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The leaders of the world’s 20 largest economies issued a joint statement on Monday calling for a global deal to fight hunger, more aid for war-torn Gaza and an end to hostilities in the Middle East and Ukraine.

The joint statement was approved by members of the group, but not unanimously. It also called for a future global tax on billionaires and reforms to the United Nations Security Council to allow it to expand beyond its current five permanent members.

At the start of the three-day meeting, which officially ends on Wednesday, experts doubted that Brazilian President Luiz Inácio Lula da Silva would be able to persuade the assembled leaders to reach an agreement at a meeting fraught with uncertainty over the new administration of U.S. President-elect Donald Trump and heightened global tensions due to wars in the Middle East and Ukraine.

Argentina objected to some language in early drafts and was the only country not to endorse the entire document.

Still, the fact that a joint statement was issued was a ‘success’ for Lula.

The declaration condemned wars and called for peace, but did not condemn any crimes.

Gaza and Ukraine on the agenda

Referring to the ‘catastrophic humanitarian situation in Gaza and the escalation in Lebanon’, the declaration stressed the need to increase humanitarian aid and better protect civilians.

“We reaffirm the Palestinian right to self-determination and reiterate our unwavering commitment to the vision of a two-state solution, with Israel and the state of Palestine living side by side in peace,” it said.

Israeli attacks have so far killed more than 43,000 Palestinians in Gaza and more than 3,500 in Lebanon, according to local health officials.

Biden, who met with G20 leaders before the statement was issued, suggested that ‘Hamas is solely responsible for the war’ and called on other leaders to ‘increase pressure on Hamas’ to accept a ceasefire agreement.

Biden’s decision to ease restrictions on Ukraine’s use of longer-range U.S. missiles, allowing it to strike Russia, was also on the agenda for the meeting.

“The United States strongly supports the sovereignty and territorial integrity of Ukraine. I think everyone around this table should do the same,” Biden said at the summit.

Russian President Vladimir Putin did not attend the meeting, sending Foreign Minister Sergei Lavrov instead. The G20 statement highlighted the ‘humanitarian suffering in Ukraine’ and called for peace, without mentioning Russia.

Billionaire tax and the fight against hunger

The statement called for a possible tax on global billionaires, which Lula also supports. Such a tax would affect about 3,000 people worldwide, including about 100 in Latin America.

The declaration also included a clause promoting gender equality.

Argentina signed the G20 declaration but had problems with references to the UN’s 2030 sustainable development agenda. Far-right President Javier Milei described the agenda as a ‘supranational programme of a socialist nature’. He also objected to calls to regulate hate speech on social media, which Milei said violated national sovereignty, and to the idea that governments should do more to fight hunger.

Much of the declaration focuses on Lula’s priority of eradicating hunger.

The Brazilian government stressed that Lula’s launch of the Global Alliance Against Hunger and Poverty on Monday was at least as important as the final G20 declaration. As of Monday, 82 countries had signed the plan, the Brazilian government said. The plan is also supported by organisations such as the Rockefeller Foundation and the Bill & Melinda Gates Foundation.

Call for United Nations reform

Leaders have pledged to work for ‘transformative reform’ of the UN Security Council to ‘adapt it to the realities and demands of the 21st century, making it more representative, inclusive, efficient, effective, democratic and accountable’.

Nearly eighty years after the founding of the United Nations, almost all countries agree that the Security Council needs to be expanded to reflect the world of the 21st century and to include more voices. The main dilemma and the biggest disagreement are how to do this. The G20 statement did not answer this question.

“We call for an expanded composition of the Security Council that improves the representation of underrepresented and under-represented regions and groups, such as Africa, Asia-Pacific and Latin America and the Caribbean,” the declaration said.

Shortly before the UN summit in September, the United States announced its support for two new non-permanent seats for African countries and a first non-permanent seat for small island developing states. But the Group of Four – Brazil, Germany, India and Japan – prefer each other’s proposals for permanent seats. The larger Uniting for Consensus group of a dozen countries, including Pakistan, Italy, Turkey and Mexico, wants additional non-permanent seats for longer terms.

Xi backs calls for reform and equality

Speaking at the summit, Chinese President Xi Jinping emphasized the interests of the so-called global south, which includes emerging economies, and called for reform of international institutions and consensus on how to achieve parity in finance, trade, digital technology, and the environment.

The Chinese leader said artificial intelligence should not be ‘a game of rich countries and the rich’ and stressed the need to improve digital governance for inclusive economic globalization.

Xi reiterated host Brazil’s call for greater economic equality, including poverty eradication and reform of institutions such as global creditors for developing countries.

Xi called for reform of the World Trade Organization’s dispute settlement mechanism to return to normal operation “as soon as possible”. The mechanism remains in limbo as the U.S. has blocked appointments to the Appellate Body over concerns of judicial activism.

China had filed a dispute settlement case at the WTO after the European Union imposed new tariffs on Chinese electric vehicles last month.

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