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Taiwan shaken by strongest earthquake since 1999, technology sector hit

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A powerful undersea earthquake off Taiwan on Wednesday morning killed at least seven people, rattled the island’s vital high-tech industries and briefly triggered tsunami warnings in the Philippines and Japan’s Okinawa region.

The 7.2-magnitude quake off Hualien was the largest to hit the island since September 1999, Taiwan’s Central Meteorological Administration said. The full extent of casualties and damage was not immediately clear, but Taiwan’s interior ministry reported seven dead and hundreds injured by mid-afternoon. Photographs showed heavily toppled buildings and broken railway tracks in Hualien, where the local government suspended work and schools for a day. Roads leading into the city were also cracked.

Taiwan’s technology companies rushed to assess the impact. Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest chipmaker, evacuated some of its factories as a precaution.

In a statement, the company said: “Preventive measures have been taken according to procedure and some factories have been evacuated. All personnel are safe and evacuees have begun to return to work. The company is currently confirming the details of the impact”.

TSMC added that it had “decided to suspend work on construction sites [for new facilities] for today, and work will resume after further inspection”.

Liu Chitong, CFO of United Microelectronics, told Nikkei Asia that the world’s third-largest contract chipmaker had also evacuated its production facilities. “Some chip production machines have been stopped, and now our team is working to restart the production machines as soon as possible,” he said.

Display manufacturers Innolux and AUO also evacuated their facilities.

A manager at one of TSMC’s equipment suppliers told Nikkei Asia that his company was discussing whether to send more staff to work overtime to help chipmakers make up for the disruption during the grave-sweeping holiday later this week.

Sources at TSMC said some wafers had cracked and some machines had stopped at factories in Hsinchu. Many people are expected to have to work over the holiday as a result.

The impact in Tainan, home to some of the most advanced chip manufacturing facilities, including TSMC’s 5-nanometre and 3-nanometre factories that produce processors for Apple’s iPhones and Nvidia’s artificial intelligence computing chips, initially appeared to be milder.

On the Taiwan Stock Exchange, the Taiex Weighted Index fell immediately after the opening bell. It fell as much as 0.96 per cent during the day and closed down 0.63 per cent.

In Japan, the Meteorological Agency initially measured the magnitude of the earthquake at 7.5, then raised it to 7.7, while officials said they were investigating the difference with Taiwan’s readings. The quake was said to have struck at a depth of 23 kilometres.

Japanese authorities had initially warned of a tsunami in Okinawa that could reach up to 3 metres. At 9.18am, a tsunami of up to 30cm was recorded on the Japanese island of Yonaguni, near Taiwan. Authorities in the Philippines also issued a tsunami warning for four northern provinces.

Authorities in both countries later cancelled the warnings.

Naha airport, near the coast on the main island of Okinawa, temporarily suspended commercial flights due to the tsunami warning, but resumed operations at around 11:00.

Several Japanese companies operating in Taiwan reported minor damage, including chip manufacturing equipment maker Tokyo Electron and wafer polishing machine supplier Ebara. Tokyo Electron has several facilities in Hsinchu, Linkou, Taichung and Tainan, mostly for maintenance and corporate operations, but said it did not expect any long-term effects.

Meanwhile, a Japan Meteorological Agency official warned of further seismic instability: “Beware of earthquakes of the same magnitude for about a week after the earthquake. In particular, large earthquakes are likely to occur in the next two to three days”. According to the agency, the earthquake was most likely caused by the compression and slip of dip-slip faults.

Japanese Prime Minister Fumio Kishida offered his condolences to the victims in Taiwan. “Japan is ready to provide all necessary assistance to Taiwan, our neighbour across the sea, in its difficult time,” he said. Taiwan hit by strongest earthquake since 1999, technology sector also affected

A powerful undersea earthquake near Taiwan on Wednesday morning killed at least seven people and rattled the island’s vital high-tech industries, briefly triggering tsunami warnings in the Philippines and Japan’s Okinawa region.

The 7.2 magnitude quake off Hualien was the largest to hit the island since September 1999, according to Taiwan’s Central Meteorological Administration. The full extent of casualties and damage was not immediately clear, but Taiwan’s interior ministry reported seven dead and hundreds injured by mid-afternoon. Photographs showed heavily toppled buildings and broken railway tracks in Hualien, where the local government suspended work and schools for a day.Roads leading into the city were also cracked.

Taiwan’s technology companies rushed to assess the impact.Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest chipmaker, evacuated some of its factories as a precaution.In a statement, the company said: “Preventive measures have been taken according to procedure and some factories have been evacuated.All personnel are safe and evacuees have begun to return to work. The company is currently confirming the details of the impact”.

TSMC added that it had “decided to suspend work on construction sites [for new facilities] for today, and work will resume after further inspection”.

Liu Chitong, CFO of United Microelectronics, told Nikkei Asia that the world’s third-largest contract chipmaker had also evacuated its production facilities. “Some chip production machines have been stopped, and now our team is working to restart the production machines as soon as possible,” he said.Display manufacturers Innolux and AUO also evacuated their facilities.

A manager at one of TSMC’s equipment suppliers told Nikkei Asia that his company was discussing whether to send more staff to work overtime to help chipmakers make up for the disruption during the grave-sweeping holiday later this week.Sources at TSMC said some wafers had cracked and some machines had stopped at factories in Hsinchu. Many people are expected to have to work over the holiday as a result.The impact in Tainan, home to some of the most advanced chip manufacturing facilities, including TSMC’s 5-nanometre and 3-nanometre factories that produce processors for Apple’s iPhones and Nvidia’s artificial intelligence computing chips, initially appeared to be milder.

On the Taiwan Stock Exchange, the Taiex Weighted Index fell immediately after the opening bell. It fell as much as 0.96 per cent during the day and closed down 0.63 per cent.In Japan, the Meteorological Agency initially measured the magnitude of the earthquake at 7.5, then raised it to 7.7, while officials said they were investigating the difference with Taiwan’s readings.The quake was said to have struck at a depth of 23 kilometres.Japanese authorities had initially warned of a tsunami in Okinawa that could reach up to 3 metres.At 9.18am, a tsunami of up to 30cm was recorded on the Japanese island of Yonaguni, near Taiwan. Authorities in the Philippines also issued a tsunami warning for four northern provinces.

Authorities in both countries later cancelled the warnings.

Naha airport, near the coast on the main island of Okinawa, temporarily suspended commercial flights due to the tsunami warning, but resumed operations at around 11:00.Several Japanese companies operating in Taiwan reported minor damage, including chip manufacturing equipment maker Tokyo Electron and wafer polishing machine supplier Ebara. Tokyo Electron has several facilities in Hsinchu, Linkou, Taichung and Tainan, mostly for maintenance and corporate operations, but said it did not expect any long-term effects.Meanwhile, a Japan Meteorological Agency official warned of further seismic instability:”Beware of earthquakes of the same magnitude for about a week after the earthquake. In particular, large earthquakes are likely to occur in the next two to three days”.According to the agency, the earthquake was most likely caused by the compression and slip of dip-slip faults.

Japanese Prime Minister Fumio Kishida offered his condolences to the victims in Taiwan.”Japan is ready to provide all necessary assistance to Taiwan, our neighbour across the sea, in its difficult time,” he said.

ASIA

Chinese, Russian troops hold joint exercise targeting cross-border terrorism

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China and Russia have held a joint military exercise focusing on cross-border terrorism, amid growing concern over terrorist attacks in Moscow.

The drill was held on 25 June in a river area near the Heilongjiang Bridge linking Russia’s Blagoveshchensk and China’s Heihe, the Chinese military’s official media outlet PLA Daily reported on Tuesday.

It was the first joint counter-terrorism drill between the neighbouring countries since Russia’s intervention in Ukraine.

It came just days after terrorist attacks in Russia’s southern region of Dagestan on 23 June, in which at least 22 people were killed in shootings at two synagogues, two Orthodox churches and a police station.

In March, more than 140 people were killed in an attack on a concert hall in Moscow, the deadliest terrorist attack in Russia for almost two decades. The Khorosan branch of ISIS claimed responsibility for the attack.

According to the PLA Daily, last week’s joint exercise simulated ‘terrorists trying to cross the border’ to launch an attack.

Chinese and Russian troops used aerial reconnaissance, maritime interception and land ambush to intercept and capture the terrorists during the exercise.

The exercise, which focused on improving intelligence sharing and operational coordination, showed the “firm determination” of both militaries to take effective measures to “combat all forms of terrorism, separatism and extremism” while jointly securing border areas, the report said.

The report also said that the two sides discussed further deepening border cooperation.

This is not the first time the two countries have held joint counter-terrorism exercises. In 2019, China’s People’s Armed Police took part in an exercise with the Russian National Guard in Russia.

According to Tass, Russian Foreign Minister Sergei Lavrov reaffirmed the two countries’ ongoing cooperation in the fight against terrorism, including on multilateral platforms, during a meeting with his Chinese counterpart Wang Yi in April.

Aiming to strengthen law enforcement cooperation

Last week’s joint exercise follows an agreement between Chinese and Russian leaders during Russian President Vladimir Putin’s visit to Beijing in May to strengthen cooperation in law enforcement and defence, including by expanding joint training and exercises.

The Chinese and Russian coast guards also signed a memorandum of understanding on maritime law enforcement cooperation in April last year.

In March, China and Russia organised a naval exercise with Iran focusing on anti-piracy efforts. China and Russia also held joint naval and air exercises in the Sea of Japan, or East Sea, in July last year.

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Controversial military operations and ethnic dynamics in Pakistan’s fight against terrorism

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In a recent high-level meeting, the federal government of Pakistan announced its intention to launch a new military operation against terrorist organizations. This decision is aimed at eradicating militancy under the banner of Azm-i-Istehkam. Surprisingly, the military leadership has remained silent on this proposed operation, leaving the advocacy to political figures, notably Defense Minister Khawaja Asif of the Pakistan Muslim League (PML-N).

The Pakistan People’s Party (PPP), a significant coalition partner in the federal government, has maintained a conspicuous silence on the matter. Meanwhile, despite the approval from Khyber Pakhtunkhwa’s Chief Minister Ali Amin Gandapur, factions within Pakistan Tehreek-e-Insaf (PTI) and the Sunni Ittehad Council have openly opposed the operation. This divergence in political opinion highlights the complex dynamics at play in Pakistan’s approach to counter-terrorism.

The opposition from various regional and ethnic parties, including the Pashtun Protection Movement (PTM), Pakhtunkhwa Milli Awami Party (PkMAP), and the Awami National Party (ANP), stems from deep-seated concerns about the operation’s focus and its implications. Historically, PTI and PkMAP have not been staunchly anti-Taliban. PTI’s leader, Imran Khan, has consistently opposed military actions against Taliban militants, advocating instead for dialogue. Similarly, PkMAP leader Mehmood Khan Achakzai, while ostensibly opposing terrorism, is perceived to have friendly relations with the Taliban, as evidenced by the relative safety of his party members from Taliban attacks.

Significant religious-political entities have complex stances on militancy in Pakistan

The relative safety of certain political groups, like PTM and the National Democratic Movement, from Taliban violence raises questions. Critics argue that this perceived immunity could suggest covert alliances or understandings, casting doubt on the motivations behind their opposition to the military operation.

Jamiat Ulama-e-Islam (JUI-F) and Jamaat-e-Islami (JI), both significant religious-political entities, have complex stances on militancy. JUI-F’s position has been ambiguous since the Soviet invasion of Afghanistan in 1979. In contrast, JI, having reaped substantial benefits from the Afghan war, now finds itself sidelined and is striving to reassert its relevance by attempting to align with nationalist sentiments.

The media and sections of the government, particularly those influenced by Punjabi and Urdu-speaking elites, have often portrayed the Taliban as predominantly Pashtun. This narrative has led to the proposed military operation being focused on Pashtun-majority areas, such as Khyber Pakhtunkhwa and Balochistan. Defense Minister Khawaja Asif’s statement that the operation will target these regions reinforces this perception.

Pashtun-dominated regions reject the notion that terrorism is a Pashtun phenomenon

However, leaders from Pashtun-dominated regions, like Khan Muhammad Wazir of the ANP, reject the notion that terrorism is a Pashtun phenomenon. Wazir points to the involvement of non-Pashtun militants in numerous terror attacks across Pakistan. He highlights the role of Punjabi militants in groups like the Punjabi Taliban, Lashkar-e-Jhangvi, and Jamaat-ul-Ahrar, who have orchestrated some of the deadliest attacks in recent years. Wazir’s argument underscores the ethnic diversity of militant groups in Pakistan, challenging the stereotype of the Pashtun terrorist.

Wazir’s emotional plea for an operation starting in Punjab, rather than Pashtun areas, aims to shift the focus to the diverse origins of militancy. He names several key figures from Punjab involved in terrorist activities, such as Tariq Lahori of Daesh and Maulana Qasmi of Jamaat-ul-Ahrar. By highlighting these figures, Wazir seeks to demonstrate that terrorism in Pakistan is not confined to any single ethnic group.

Doubt on the narration of the proposed military operation “Azm-i-Istekham”

The insistence on a military operation in Pashtun regions, driven by a media narrative dominated by Punjabi and Urdu-speaking elites, risks alienating the Pashtun community. Wazir’s call for international intervention by entities like China, the United States, Russia, the United Nations, and the Organization of Islamic Cooperation (OIC) underscores the severity of this perceived ethnic targeting. If the government and media continue to frame terrorism as a predominantly Pashtun issue, it may lead to increased ethnic tensions and further marginalize the Pashtun population.

The proposed military operation “Azm-i-Istehkam” and the political dynamics surrounding it reveal deep-seated ethnic and regional tensions within Pakistan. While the operation aims to eradicate terrorism, its focus on Pashtun areas risks reinforcing harmful stereotypes and overlooking the broader ethnic diversity of militant groups. A more equitable approach, recognizing the involvement of non-Pashtun militants and addressing the root causes of militancy across all regions, is crucial for fostering national unity and effectively combating terrorism. Only through such an inclusive strategy can Pakistan hope to achieve lasting peace and stability.

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Huawei Harmony aims to end China’s reliance on Windows and Android

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While Chinese tech giant Huawei’s recent smartphone launches have been closely watched for signs of progress in China’s chip supply chain, the company has also developed expertise in sectors vital to Beijing’s vision of technological self-sufficiency, from operating systems to car software.

Chinese President Xi Jinping told the CPC Politburo last year that China must fight hard to localise operating systems and other technologies “as soon as possible” as the US restricts exports of advanced chips and other components.

OpenHarmony, developed by Huawei, is widely promoted in China as the “national operating system”.

“This strategic move is likely to erode the market share of Western operating systems such as Android and Windows in China as local products gain traction,” Sunny Cheung, an associate fellow at the Jamestown Foundation, a US defence policy group, told Reuters.

In the first quarter of 2024, Huawei’s own version of the HarmonyOS operating system overtook Apple’s iOS to become the second best-selling mobile operating system in China after Android, according to research firm Counterpoint. It has not yet been released on smartphones outside China.

“Harmony has created a strong core operating system for the future of China’s devices,” Richard Yu, president of Huawei’s consumer business group, said at the opening of a developer conference last week.

Self-sufficiency

Huawei first introduced Harmony in August 2019, three months after Washington imposed trade restrictions over alleged security concerns. Huawei denies that its equipment poses a risk.

Since then, China has stepped up its self-sufficiency efforts, pulling out of the main code-sharing centre Github and supporting a local version, Gitee.

China banned the use of Windows on government computers in 2014 and now uses mostly Linux-based operating systems.

Microsoft derives only 1.5 per cent of its revenue from China, its chief executive said this month.

Originally built on an open-source Android system, Huawei this year released the first “pure” version of HarmonyOS, which no longer supports Android-based apps, further separating China’s app ecosystem from the rest of the world.

Huawei said in its 2023 annual report that OpenHarmony was the fastest-growing open source operating system for smart devices last year, with more than 70 organisations contributing to it and more than 460 hardware and software products produced in the financial, education, aerospace and industrial sectors.

Visited by Reuters, Charlie Cheng, deputy director of the Harmony Ecosystem Innovation Centre, said the aim of making it open-source was to replicate Android’s success in eliminating licensing costs for users and provide companies with a customisable springboard for their own products.

“Harmony will definitely become a mainstream operating system and give the world a new choice of operating systems besides iOS and Android,” he said.

Google, Apple and Microsoft did not respond to requests for comment.

China’s previous efforts to build large open source projects have struggled to gain traction among developers, but Huawei’s growing smartphone market share and extra work to develop a broader ecosystem gives Harmony an edge, analysts said.

Huawei’s Yu said this month that more than 900 million devices, including smartphones, watches and car systems, were running HarmonyOS and that 2.4 million developers were coding in the ecosystem.

“OpenHarmony will need more time and iterations for these developers to feel more confident about working with OpenHarmony,” Emma Xu, an analyst at research firm Canalys, told Reuters, adding: “But the reputation, behaviour and trust that HarmonyOS has achieved will certainly have a positive impact.”

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