In Geopolitics Today - Friday, November 5th
Power Shortages Across China and US Agrees to Sell Air-To-Air Missiles to Saudi Arabia
Power Shortages Across China
China has been grappling with a serious power crisis in recent weeks. The amount of coal that China imports has surged 76 percent in the month of September as power plants scrambled for fuel. Effort is being placed in attempting to ease a power crunch that is pushing domestic coal prices to record highs and disrupting business activity in the world’s second-largest economy. China’s state planners have said that the country will focus its attention on securing domestic coal and energy supplies for the coming winter while also ensuring the country’s climate change targets are met.
Beijing has made an official request for more coal imports to arrive from Mongolia in an effort to offset an ongoing supply shortage. Mongolia has effectively replaced Australia as China’s main source of imported coal since the second half of last year, when Beijing banned all Australian coal. Since then, the price of coal has been on an upward trend, and hit new highs in recent weeks as prices have risen roughly 40 per cent in the last month. Compounding issues is the fact that China and other powers have begun restocking low inventories, increasing demand and aggravating the coal shortage. Chinese authorities have sought to address these shortages by stepping in to ensure an ample production of coal for industry. At the same time, China aims to bring its regional authorities toward closer adherence to strict carbon emission reduction targets.
Chinese authorities have moved quickly to boost national reserves and accelerate the approval of land-use rights for mines in Inner Mongolia. These mines had previously been suspended due to restricted access to land. The Chinese government has urged coal-mining companies to stop hoarding coal at ports, and to ensure a steady supply for the country. China’s industrial engine produces countless electronics, toys, clothes and equipment for markets across the globe, and its economy is deeply connected with other countries’. And China is not the only country struggling with power supplies, as fuel shortages and blackouts are increasingly widespread due to rising costs elsewhere too.
Read more about this story here.
US Agrees to Sell Air-To-Air Missiles to Saudi Arabia
The US State Department has approved the sale of $650 million worth of air-to-air missiles to Saudi Arabia. The approval means Riyadh is close to being able to purchase up to 280 of the AIM-120C advanced medium-range missiles, bolstering Riyadh’s air-to-air capabilities at a time the country appears vulnerable from drone attacks. While Washington continues to shift its armaments toward the Indo-Pacific, there has been speculation as to what shape the US-Saudi relationship would take going forward.
President Joe Biden’s administration has taken a more cautious approach to supporting the Saudis. Nonetheless, the two countries remain steadfast allies in the region, and Riyadh’s security concerns have become difficult for Washington to ignore. The United States maintains hostile relations with Saudi Arabia’s rival Iran, which Washington accuses of arming Yemenis with drones and drone technology. This in turn has led to an increase in cross-border attacks against Saudi Arabia, which is leading the war against Houthi rebels in Yemen. A US official stressed that the sale of the missiles to Riyadh is “consistent with the administration’s pledge to lead with diplomacy to end the conflict in Yemen” while also functioning as a means for Saudi Arabia to “defend itself from Iranian-backed Houthi air attacks.”
Washington appears to remain committed to the defence of Saudi Arabia as the missile sale follows a US approval of a $500m helicopter maintenance deal in September. Biden had previously pledged to end US support to Saudi Arabia for the war in Yemen, but deep military cooperation between the two countries continues. However, State Department approval of this latest missile deal may not be enough to secure the transfer of the missiles to Riyadh. Congress is now formally notified of the sale proposal, where the matter will go up for debate. While the sale does not require congressional approval, lawmakers are able to block the deal by passing a disapproval bill in the Senate and the House of Representatives.
Read more about this story here.