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Hell-bent on Chinese target in Pakistan; Why

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Pakistan on Tuesday arrested a “terrorist” affiliated with the banned Sindh Revolution Army (SRA) before carrying out bomb attacks on two Chinese targets in the city of Karachi.

The Counter Terrorism Department (CTD) of the police identified the arrested “terrorist” as Mumtaz Ali, who during investigation disclosed crucial information that resulted in recovering of an Improvised Explosive Device (IED) and a remote-controlled bomb, both intended for use in acts of terrorism.

CTD in a statement said that Ali disclosed that he had received instructions from SRA commander Asghar Shah, also known as Sajjad Shah, to target two locations in Karachi.

The first target was the China Town Restaurant in Clifton, while the second target was the CPEC Ibrahim Hyderi project, where Chinese workers were employed, according to the statement, where Ali’s was assigned to carry out attacks against these targets.

Ali was arrested as he was heading toward the China Town Restaurant with a fully prepared remote-controlled IED bomb concealed in a black travel bag.

Police said they arrested Ali and also successfully recovered the bomb, and the CTD has registered a case against the terrorist under anti-terrorism and explosive acts.

Investigation will continue to find more suspects involved in such a target.

Political instability embolden “terrorists” to carry attacks

The current political crisis in Pakistan can create more space for the “terrorists” to carry attacks on specific targets, especially the Chinese. It is crystal clear that China has been engaged in several development projects inside Pakistan, where many groups including SRA are against Beijing’s involvement.

“(SRA) is an alleged separatist group from Sindh and seems in links with fellow Baluch freedom fighters,” Shamim Shaid, a Pakistan political expert told Harici.

Pakistani investigators examine the site of the explosion, targeting Chinese teachers in Karachi, Pakistan, on April 26, 2022.

He furthered, “In fact, Pakistan as a result of its ill planned internal and external policies is facing the worst kind of sense of deprivation in smaller provinces like Balochistan, Singh, Khyber Pakhtunkhwa and even in Gilgit-Baltistan and Azad Kashmir.”

Though depressed from Sindh and Balochistan are active but in Khyber Pakhtunkhwa, GB and Azad Kashmir the resistance or opposition is kept under pressure by army establishment and spy agencies through its loyal hardliners and feudal, according to Shaid.

He further went on saying that at the moment Pakistan is surrounded by a stock of issues especially political crises, economic and security problems and this will give upper hand to the “terrorists” to carry attacks against specific targets, especially the Chinese.

Six security personnel killed, one disappeared

At least six security personnel were killed and one disappeared when unknown militants attacked a plant of foreign oil and gas exploration company in Southern Hangu district of Khyber Pakhtunkhwa in the early hours of Tuesday.

The unknown militants attacked the MOLE company site/plant situated at Manji Khel area of Hangu, adjacent to Thall area. Occupants of Plant have made their best in resistance but finally six of them killed, based on local officials.

Irfan Khan Deputy Superintendent Police confirmed the incident, saying four killed were associated with Frontier Constabulary whereas two were on security duty with the Foreign Oil Company MOLE. Later in official correspondence, one personnel was found missing.

A Spokesperson of MOLE Company has also confirmed the attack, saying, “our management is in contact with civil and police administration.”

No arrest has been made so far in relation to the attack, but the police said the security has been tightened all over the area.

Sites/plants of all foreign oil and exploration companies in several southern districts of Khyber Pakhtunkhwa including North Waziristan are under tremendous threats of militants from the last several years.

Pakistan boosts up security for Chinese nationals

The arrest of Mumtaz Ali suspected SRA “terrorist” came when early this month, Pakistan assured China that Islamabad will boost security for all Chinese nationals working on multi-billion dollar projects across the country.

During a meeting with Chinese Foreign Minister Qin Gang on 5th of May, Pakistan’s President Arif Alvi pledged more security for Chinese workers. The discussion was held ahead of a mini-summit in Islamabad, during which Pakistan’s foreign minister, Bilawal Bhutto Zardari, will host Qin and also Afghanistan’s Foreign Minister, Amir Khan Muttaqi.

Visiting Chinese Foreign Minister Qin Gang meets with Pakistani President Arif Alvi, in Islamabad, May 5, 2023.

China has been demanding more security for its nationals working in Pakistan. In 2021 a suicide bomber killed nine Chinese and four Pakistanis, while in April 2022, a Pakistan separatist group Baloch Liberation Army warned of more violent attacks on Chinese targets days after a suicide bomber killed three Chinese teachers. One Pakistan driver was also killed in the attack near the gate of the Confucius Institute at the University of Karachi.

In April 2021, a suicide bomber attacked a hotel hosting the Chinese ambassador in Quetta, in which four were killed and dozens more received injuries. The ambassador escaped unhurt in the attack.

Insecurity undermines CPEC

It’s worth mentioning that China’s investments in Pakistan have grown, particularly after the creation of the China-Pakistan Economic Corridor (CPEC), but security now stands as a big obstacle that possibly undermines these projects.

Pakistan has to improve its security as CPEC includes a multitude of mega projects such as road construction, power plants and agriculture as it is considered as a lifeline for Pakistan’s cash-strapped government that currently has been going through one of the worst economic crises.

CPEC is part of the Belt and Road Initiative (BRI), a global endeavor aimed at reconstituting the Silk Road and linking China to all corners of Asia, and Pakistan is a key player in the project.

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Afraid of the gun; Taliban supreme leader fears of a coup

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Hibatullah Akhundzada, the supreme leader of the Taliban, has ordered the security institutions that without his permission, “no one can distribute or use the military equipment registered by the ministries of defense and interior, the directorate of intelligence and other independent institutions.”

Experts and analysts have considered this move by Hibatullah as last resort to weaken the position of defense minister, Yaqoob Mujahid, interior minister, Sirajuddin Haqqani and the head of Taliban intelligence, Abdul Haq Wasiq in order to prevent a possible internal coup that was initiated by these three top officials.

In the first article of the order, it is mentioned that no person can distribute military equipment registered in the reserves of the ministries of defense, interior and intelligence, or issue an order to distribute it without the order of Hibatullah.

This decree titled “Regarding the distribution, protection and supervision of registered military equipment”, specifies that whenever an Emirate entity (Taliban-related entity) needs weapons, ammunition, night vision cameras, telecommunications and other military equipment” must receive the approval order from the leader of the Taliban.

Also, in the second article of this decree, it is stated that whenever one of the military departments of the Taliban needs military equipment, it must send its request to Hibatullah’s office in Kandahar.

In the third article of the decree, it is emphasized that if the military equipment was distributed or used without the permission of the Taliban leader before the issuance of this decree, they must be returned to the reserves.

Ministries of defense, interior and head of intelligence department are banned from disturbing military weapons.

According to this article, Hibatullah entrusted the ministries of defense and interior, as well as the general directorate of Taliban intelligence, with the responsibility to report the list of available military equipment to the directorate of registration, and protection of military equipment.

This order of the Taliban leader has been considered as another step in the direction of concentrating more power in the hands of Mullah Hibatullah in Kandahar. Many have seen it as a sign of Hibatullah’s increasing distrust of senior Taliban officials in Kabul. Previously, some senior Taliban officials, including Sirajuddin Haqqani, have openly disobeyed Hibatullah’s order to prohibit photography and filming and have not followed the order of their supreme leader.

(R) Defense Minister Mullah Yaqoob Mujahid and (L) Interior Minister Sirajuddin Haqqani.

Previously, several reports have been published about the sale of military equipment left over from the US troops and Afghan security forces during the republic government. Even the US-elected president Donald Trump, repeatedly mentioned this issue during his election campaigns. Not long ago, the government of Pakistan also announced that the Pakistan security forces have discovered and confiscated a car carrying US weapons smuggled from Afghanistan.

Pakistani media reported that this equipment included M4 assault rifles, night vision cameras and thousands of rounds of ammunition, which were transported in a truck carrying vegetables. Pakistani security officials have estimated the total value of weapons smuggled from Afghanistan in this truck to be 126,354 US dollars.

The cost of US’s remaining equipment in Afghanistan estimated over 7 billion US dollars

The Pentagon has already announced that after the withdrawal of US forces from Afghanistan, about 7 billion dollars of military equipment fell into the hands of the Taliban. This equipment reached the hands of the Taliban after the fall of Afghanistan on 15 August, 2021.

It has been reported that when the US forces left Afghanistan, there were 78 US-made aircrafts in the country, whose value reached 1 billion dollars. According to CNN, with the end of the US military presence, a total of more than 9,000 air-to-ground munitions worth more than six and a half million dollars have remained in Afghanistan.

The report also states that out of a total of 96,000 military vehicles, more than 40,000 units, including 12,000 Humvees (armored tanks), fell into the hands of the Taliban. Moreover, out of a total of more than 400,000 weapons that the US gave to the forces of the former Afghan government, about 300,000 remain in the country.

Almost all “communications equipment, including mobile base stations, portable and hand-held commercial and military radio systems, and associated transmitters and encryption devices, all remain in Afghanistan,” according to the report.

The report added that “almost all” of the equipment for night vision cameras, surveillance, biometric and positioning equipment,” a total of nearly 42 thousand pieces of specialized equipment, remained in Afghanistan.

Meanwhile, Five Mi 17 helicopters of the then Afghan army, which were transferred to Ukraine for repair before the collapse of the government, have also returned to Afghanistan and now are used by the Taliban.

It should be noted that the internal rivalries in the Taliban, especially among the different factions of this group, is one of the important reasons for Mullah Hibatullah’s distrust of some Taliban officials. Some officials, including interior minister Sirajuddin Haqqani and defense minister Mohammad Yaqub Mujahid, gained a lot of power, especially during the Taliban’s war against foreign forces, and Mullah Hibatullah may be worried that these officials are trying to expand their power, which is a clear threat to his position as the Taliban leader.

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China’s BYD prepares to launch latest SUV, the Sealion 07, in Europe despite EU tariffs

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BYD, the world’s largest electric vehicle (EV) maker, is set to launch its latest SUV, the Sealion 07, in Europe, undeterred by recent tariff increases on Chinese-made electric vehicles. This strategic move highlights BYD’s commitment to expanding overseas sales despite economic barriers.

Deliveries of the Sealion 07 are scheduled to begin in 2025, marking BYD’s seventh all-electric model in the European market, the company announced on Wednesday. Additionally, BYD plans to enter the South Korean market next year, adding to its existing presence in 95 countries worldwide.

This European expansion comes on the heels of the European Union’s decision last month to impose new tariffs—ranging from 17% to 35.3%—on Chinese electric vehicles following an anti-subsidy investigation. BYD’s EVs are subject to a 17% tariff, in addition to the standard 10% tariff applied to all pure electric cars imported from China. These tariffs, which took effect last month, will remain in place for five years. Meanwhile, U.S. tariffs on Chinese-made EVs increased from 25% to 100% as of September, citing similar concerns.

Despite the added costs, BYD’s vehicles continue to hold strong appeal in export markets. “BYD’s vehicles remain attractive even after the additional tariffs, so it’s not really a big problem for the company,” said Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, a leading industry consultancy. “The Sealion 07 exemplifies how BYD’s cost advantage enables it to counteract such trade barriers in key export markets.”

Shenzhen-based BYD has yet to disclose the European pricing for the Sealion 07. On the mainland, the SUV—featuring a range of 450 kilometers—starts at 189,800 yuan (approximately US$26,272), with deliveries beginning in May.

According to a report last year from UBS analysts, BYD has a sustainable cost advantage of 25% over traditional European brands.

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Singles’ day promotions target overseas Chinese as China’s domestic demand slows

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After last year’s Singles’ Day shopping festival in China was dubbed the “quietest in history,” China’s e-commerce platforms focused on a new strategy this year.

For this year’s Singles’ Day event, major e-commerce companies such as Alibaba, JD.com, and Pinduoduo invested heavily in expanding overseas markets, targeting the estimated 100 million Chinese living abroad with offers like discounts and free or low-cost shipping.

The central question, however, is not whether these efforts will succeed in the short term, but rather if this shift can help platforms grow their user bases as online sales growth in China reaches a bottleneck.

“Domestic consumption is quite weak right now, and every company is certainly considering new ways to drive growth for Singles’ Day,” said an executive at a leading online retailer, who requested anonymity. “The overseas market is widely seen as a promising source for additional growth,” he added in an interview with Nikkei Asia.

Singles’ Day, a one-day sales event launched by Alibaba in 2009 as a celebration for singles, has since evolved into a month-long campaign with special offers and deep discounts, culminating on or around November 11.

This year, China aimed to revitalize its retail sector with the event. Total consumer goods sales rose by 3.3% year-on-year in the first three quarters of 2024, though high-end consumer spending remained stagnant. Cosmetics sales fell by 1%, while gold and silver jewelry sales declined by 3.1% year-on-year.

Last month, Alibaba’s Taobao launched a significant marketing campaign in Hong Kong and Taiwan, flooding subway stations with advertisements for “free shipping on orders over 99 yuan,” among other offers. According to the company, the campaign cost 2 billion New Taiwan dollars ($61.7 million) in Taiwan and 1 billion yuan ($138 million) in Hong Kong.

Following Alibaba’s move, JD.com announced it had invested 1.5 billion yuan to offer discounted product prices and cheaper shipping to Hong Kong shoppers. Bargain platform Pinduoduo took it a step further, offering free shipping via courier SF Express for Hong Kong shoppers, regardless of the item’s price. All products on these platforms are shipped from mainland China.

A spokesperson from Alibaba’s International Digital Commerce Group noted that since the overseas initiative launched in October, Taobao Hong Kong has achieved double-digit growth in both orders and gross merchandise value (GMV)—a metric that excludes canceled orders—on both a monthly and year-on-year basis.

The platforms are also targeting Chinese shoppers in Malaysia, Thailand, and Singapore.

This year, unlike in previous years, shoppers could combine online discounts with a subsidy program introduced by the Chinese government to boost domestic consumption, primarily for home appliances and household products. Analysts suggest these incentives will likely boost sales for JD.com, which is known for selling high-quality large appliances and offering after-sales services.

While JD.com has yet to release sales or GMV figures for home appliances during the shopping festival, it is expected to share its June-September results, along with Alibaba, later this week.

Last year, data provider Syntun estimated that total GMV on major e-commerce platforms grew by only 2.1% to 1.14 trillion yuan, falling short of the 2.9% growth forecast for 2022. Similarly, consultancy Bain predicted that Singles’ Day sales would reach 1.15 trillion yuan in 2023.

On Tuesday morning, Alibaba announced “strong GMV growth” and a “record number” of active shoppers for this year’s Singles’ Day event.

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