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Diplomacy
New Taiwan President Lai Ching-Te at a speech

Taiwan's national elections: a question of world order

by FAES Analysis Group

In an ideal world, Taiwan's national elections would have nothing to do with China or the United States, let alone the relationship between these two countries. However, the victory of Lai Ching-te, hitherto the vice-chairman of the Democratic Progressive Party (DPP) government, a candidate who enjoys no sympathy from Beijing, has implications for China-Taiwan and China-US relations. In any case, the DPP's victory has not guaranteed it an absolute majority - in a chamber composed of 113 seats, the vote for the DPP fell from 61 to 51 (because of the poor economic situation) - and it will be forced to negotiate a coalition government. Taiwan's national elections are a matter of world order mainly because one of Xi Jinping's policy priorities is the "historical inevitability" of "unification" between China and Taiwan. If Xi fulfills his ambition, changing the borders and territorial integrity of a country through military force, it would be a flagrant violation of the international liberal order. Given U.S. President Joe Biden's promise - that Washington would defend Taiwan if invaded by China - "reunification" would provoke a war between the two powers, between revisionist and authoritarian China and the United States, the country that has created, sustained and led the international order after World War II. While Western politicians and analysts argue that China, as a revisionist power, increasingly poses a threat to the stability of the region and the international liberal order, for Taiwan it is an existential issue. The successful consolidation of Taiwan's democracy in recent decades has intensified the growth of a distinct Taiwanese identity. As the political systems of China and Taiwan continue to diverge, there is little support on the island for "unification." Taiwan is increasingly anchored to the West and its population is broadly in favor of strengthening relations with liberal democracies, especially Japan, the United States and Europe. From the beginning of the campaign, all three candidates - DPP's Lai, Hou Yu-ih of the Kuomintang (KMT), which increased its number of legislators from 38 to 52, and Ko Wen-je of the Taiwan People's Party (TPP), which has won 8 seats - expressed that the priority of their foreign and domestic policies would be to preserve Taiwan's de facto independence and peace with China. However, their strategies to achieve this are divergent. The strategy of Lai, the candidate who won the election, is to strengthen political, military and economic ties with the United States and its allies; while Hou and Ko intended to restart the dialogue with Beijing, which China interrupted after the inauguration of President Tsai Ing-wen in 2016 (William Lai's predecessor, who served two presidential terms at the helm of the country). The new government, possibly a coalition between the DPP and KMT, will be rocked by debates over increased Defense spending. KMT politicians disagree with the DPP on the details of military strategy and what weapons to procure from the United States. In 2022, Washington and Taipei launched an ambitious trade initiative as well as security cooperation. Thus, Washington increased the number of troops deployed in Taiwan to train its military and expanded the training of Taiwanese soldiers in the United States. The new president faces economic problems that have undermined the popularity of the ruling DPP. But undoubtedly his biggest problem is relations with China. Strengthening Taiwan's defenses and minimizing Beijing's provocations-which are likely to increase in the form of military maneuvers and economic pressures-will remain the DPP's policy priorities in Taiwan. However, it does not seem clear that the DPP has a clear strategy for dealing with Xi Jinping's possible decisions. Xi is unlikely to conclude that he can tolerate Taiwan's trajectory. Lai's victory has deeply irritated the Chinese Communist Party. The election results can be read in the key of a referendum on Taiwan-China relations. Beijing has lost it to the United States. Peaceful "unification" is becoming less and less viable. Rather, there are signs that the Chinese Communist Party perceives that the trend in Taipei-Beijing relations is not moving in Beijing's favor. As a result, Xi may take the decision to act to achieve unification. Xi has stated that the Taiwan issue cannot be passed on to future generations and that achieving unification is the essence of the country's rejuvenation. "Historical inevitability" may turn into practical decision - use of military force - given China's unsatisfactory economic situation. Xi may try to make unification an important part of his political legacy. The outcome of the Taiwan election will not influence Xi Jinping's decisions. The results confirm a status quo in Taiwanese politics - the continuity of the DPP government - but it means increased pre-war tensions between Taiwan and China, as well as between China and the United States.

Diplomacy
Map of the Middle East and North Africa.

Ten Things to Watch in the Middle East and North Africa in 2024

by Prof. Dr. Eckart Woertz , Olena Osypenkova

Less than two years after Russia’s invasion of Ukraine, the Gaza War has re-ignited the Israel–Palestine conflict and disrupted regional politics. Developments in Syria and Yemen are in flux, Egypt finds a new role as mediator, and new spaces are opening up for international actors like China. We present a list of ten things to watch in the region as we move into 2024. Local conflicts: Authoritarian resilience will likely manifest itself in a series of sham elections. The Yemen War might linger on amid negotiations, while Israel has no plan on how to run Gaza after an end to hostilities. Regional developments: The Arab League has brought Syria back in from the cold. Israel’s normalisation of relations with Arab countries is on hold for the foreseeable future. Egypt is regaining some of its former regional lustre by acting as a mediator, whether in Gaza or in Sudan. International dynamics: Western democratic countries struggle to maintain influence compared to China and even Russia. A Trump victory in the US elections would change American foreign policy, make solving the Iranian nuclear file impossible, and could lead to adverse reactions from what is now a nuclear-threshold state. Israel would be given free rein in the Occupied Territories; the Gulf states would be forced to choose sides. Economic issues: The region remains an energy powerhouse difficult to ignore. OPEC+ arrangements will hold, and Gulf sovereign wealth funds might reconsider their asset allocation if G7 countries decided to seize – not just freeze – Russian foreign assets. Policy Implications Europe needs to confront China and Russia in the region, prepare for a possible Trump victory, and rein in the Israeli far right. Energy transitions may offer opportunities for regional collaboration. Sanctions against Russia and Iran need to be clearly communicated to other oil exporters unless they are spooked by financial weaponisation and refrain from investment in European capital markets. Who Will Run Gaza? Egypt administered the Gaza Strip between 1948 and 1967, but never thought about claiming it as its own territory. The Gaza Strip has remained a hot potato ever since. In contrast to the West Bank, where Israel expands illegal settlements and has annexation plans, it has no such ambition in Gaza. In 2005 Israeli forces even withdrew, only controlling external access points. Who will run Gaza after the arms fall silent? Israel does not seem to have a concrete plan, except for “destroying Hamas” – which has run the Gaza Strip for nearly two decades – and disconcerting mind games about ethnic cleansing by pushing large population segments out of Gaza. Whatever is meant by “destroying Hamas,” it is a task whose fulfilment is unlikely; one cannot militarily destroy an ideology with deep roots in an insurgent movement and the broader population. The Israeli government has also ruled out that the ailing and corrupt Palestinian Authority could ride back into Gaza with the help of Israeli bayonets, a plan that the US administration has peddled. (Leaving aside the question whether the PA would either want or could even do that given its extreme weakness; its leader, Mahmoud Abbas, is 88 years old). Israel does not want to rule Gaza, but will have to if no other solution is found. It is still considered the occupying force by the UN and wants to have the freedom to intervene in the future to thwart any emerging security threat like the Hamas terror attack of 7 October. The UN or Arab countries such as Egypt, the UAE, and Saudi Arabia are unlikely to step in. They would only potentially assist in the administration of Gaza if Israel was ready to provide a credible political solution to the Palestinian question, but the populist Benjamin Netanyahu government with its right-wing extremists such as Bezalel Smotrich and Itamar Ben-Gvir is unlikely to even contemplate such an idea. Running Gaza will be a daunting task. There is an escalating humanitarian crisis, and up to three-quarters of all houses are damaged or destroyed. Donors such as the Gulf countries and the EU will not be enthusiastic to provide reconstruction funds yet again if renewed hostilities and destruction are a distinct possibility. Will the War in Yemen End? In September 2023, direct negotiations in Riyadh between senior representatives of Iran-aligned Ansar Allah (also known as the Houthis) and high-ranking Saudi officials, including the Saudi minister of defence, raised hopes about a pending end to the protracted war in Yemen, which has caused one of the world’s largest humanitarian crises and an estimated 377,000 deaths since its onset in 2015. On the verge of Christmas, then, UN Special Envoy to Yemen Hans Grundberg announced that Ansar Allah and the Saudi-backed internationally recognised government had committed “to a set of measures to implement a nationwide ceasefire,” proclaiming that he “will now engage with the parties to establish a roadmap under UN auspices [towards lasting peace]” (OSESGY 2023). While these are significant developments that bear the potential to end the stalemate in one of the deadliest regional conflicts, one should exercise caution when assessing the prospects for peace in Yemen any time soon. Bent on terminating its direct involvement in the war, Riyadh failed to exact meaningful concessions from Ansar Allah. Instead, it demanded major ones from its Yemeni allies in the Presidential Council – who, given their dependence on Saudi Arabia, grudgingly acquiesced. With the Council representing a mixed bag of rival groups, however, upcoming negotiations will be challenging. Even if its members come to terms with Ansar Allah under Saudi pressure, the odds are high that intra-Yemeni fighting will be resumed thereafter – even if on a more modest scale. Another obstacle to peace is Ansar Allah’s growing involvement in the Gaza War. Since mid-October 2023, the group has been launching missiles towards southern Israel. In mid-November, it also began to attack shipping lanes in the Red Sea. These attacks not only threaten to derail the upcoming intra-Yemeni negotiations (Lackner 2023) but also, and crucially, boost the risk of Yemenis being drawn into another major conflict. Authoritarian Elections in the MENA: What For and Who Cares? Around the world, 76 countries will hold elections in 2024 – a number of them situated in the Middle East and North Africa (MENA) region (The Economist 2023). Despite the prevalence of authoritarian tendencies and the failure of democratic transitions in many countries of the region, respective leaders seem to remain committed to practicing one key element of democratic systems at least: holding elections. Iranians will head to the ballot box in March 2024, for the country’s legislative elections. Concentration of political power within the hands of a small elite and the oppression of opponents have intensified over the past few decades in Iran. This has led to a widespread loss of confidence there in electoral processes, demonstrated in low voter turnouts in recent years. Meanwhile, Algeria is due to hold the country’s second presidential election since Abdelaziz Bouteflika stepped down in 2019 after 20 years in office. Hirak, the Algerian civil protest movement pivotal to the ousting of Bouteflika, has largely rejected the current president, Abdelmadjid Tebboune, as he is perceived to be a continuation of the previous political apparatus. As the opposition has called for boycotting previous elections in 2019 and 2021, we can expect low voter’s turnout in the upcoming elections again. In Tunisia, December 2023 marked the country’s first local elections under the new constitution, with a reported boycott rate of 90 per cent (El Atti 2023). Ennahda, the country’s main opposition group, has strongly questioned President Kais Saeid’s legitimacy since he suspended parliament in 2021 and called for boycotting the elections. Even in Libya there have been hopes that parliamentary and presidential elections, previously postponed for years on end, might be finally held in 2024.    While voter-turnout rates are expected to be low in Iran, Algeria, and Tunisia, underscoring their contested legitimacy, the opposite can be expected for Turkey. The local elections set for March will serve as a litmus test for the political fate of this polarised country. Following President Recep Tayyip Erdoğan’s re-election in May 2023, the Adalet ve Kalkınma Partisi (AKP) aims to reclaim major metropolitan municipalities, currently held by the opposition. Istanbul’s mayoral election holds particular importance, both economically and symbolically, as the office of mayor marked the starting point of Erdoğan’s political career. If incumbent opposition mayor Ekrem Imamoğlu is re-elected, he may have a chance of winning the next presidential elections in 2028. Conversely, a victory for AKP candidate Murat Kurum could demoralise the fragmented opposition further and consolidate the authoritarian regime long-term (Turkey recap 2024). Why are the MENA’s authoritarian governments, despite their electoral engineering often determining the results ahead of time, so determined to hold elections? Authoritarian regimes across the region have adopted a narrative that seeks to justify various aspects of their conduct, such as violent crackdowns, oppression, and corruption. Democratic institutions like national elections are a useful element in legitimising such a narrative, portraying political leaders as democratically elected and their actions as in accordance with the will of the people. Elections are a useful tool to draw clear boundaries to political participation. Incumbent leaders tend to put processes in place that push opponent groups out of the race. Such processes may take place in the form of vetting or the criminalisation of opposing political views. This allows authoritarians to maintain the concentration of power in the hands of the ruling elite by limiting the participation of other interest groups. Elections are a means for consensus-building within the established system of rule. Military and paramilitary interest groups are integral players in elections held in the MENA region. Concentration of power in the hands of authoritarian ruling elites is achieved through collaboration between the military apparatus and civilian elements of the political elite. As such, elections are also a useful tool to help renew the consensus achieved between senior military and civilian leaders. Egypt: From Mediator to Regional Power Broker? In the past year, Egypt has played a major role in conflict mediation and provided humanitarian lifelines in Sudan, Libya, and Gaza. Acute risks to regional stability from these three wars fuel existing security threats through volatility, insurgencies, and arms trafficking the longer they go on. Managing these closely intertwined conflict environments puts Egypt on track to become a major power broker in the MENA region and the Sahel at a time when its battered economy weighs heavily on its foreign influence. Libya and Sudan were major junctions in trans-Saharan arms trafficking long before the ongoing civil war in Sudan started in April 2023. Militias operating near the Libyan border with Chad transport military equipment, personnel, and fuel throughout the region, while weapons smuggled from Yemen and Eritrea via the Red Sea supply insurgents operating on the Sinai Peninsula and in the Levant. Murky battlegrounds also facilitate Russia’s advances into Africa, as both Sudan and Libya buttress revenue streams for Moscow and the Wagner Group. The US and UK’s recent airstrikes on Houthi targets to secure Red Sea shipping lanes marks a new escalation in the Israel–Hamas war with far-reaching implications. Through 2023, Egypt engaged in multiple summits to broker humanitarian ceasefires via the UN, African Union, Arab League, Intergovernmental Authority on Development, and the US–Saudi-led Jeddah process in Sudan (Skinner 2023). It hosted several conferences in Cairo to facilitate a new roadmap between Libya’s rival administrations, and dialogue among Sudan’s highly fractured civil society. Though it initially suspended its mediation in the Israel–Hamas conflict after the latter’s second-in-command, Saleh al-Arouri, was assassinated in Lebanon, Egypt resumed its involvement only days later. While countries rally around assisting in ceasefire and hostage negotiations between Israel and Hamas, or conflict management in Libya and Sudan, diplomatic rifts have strengthened in the Middle East. Egypt has so far benefitted from both trends in different ways. In the Israel–Hamas war, its indispensability opens the door for the expansion of political and economic collaboration – as, for example, through planned cash deposits from the Gulf, or US cooperation despite the recent straining of American–Egyptian relations. The fronts are more pronounced in Libya and Sudan, most notably with the UAE’s meddling in both countries through sponsoring and supplying militias with weapons, leaving Egypt as a more consistent mediator. For better or worse, Egypt’s proximity to three wars simultaneously is as much a security liability as it is a diplomatic opportunity to assert itself. Whether it can ascend from its role as mediator to a power broker, however, remains as open as these conflicts themselves do. Will Syria’s Regional Re-Integration Continue? During its annual summit on 19 May 2023, Syria under President Bashar al-Assad was re-admitted into the Arab League as a full, regular member. This was a major diplomatic and symbolic achievement for the dictatorial government in Damascus after being ousted for almost 12 years because of its massive, almost indiscriminate, repression of its own population in the incipient phase of the Syrian civil war in fall 2011 – a process that worsened in the years to follow, leading to hundreds of thousands of deaths and over 13 million displaced Syrians. The next regular Arab League summit, to be held in Bahrain in April or May 2024, will be a litmus test for whether Syrian regional re-integration will continue and what it might look like in concrete terms. So far, Arab countries’ normalisation of relations with Syria since the 2023 Arab League summit has been without any substance, essentially yielding zero benefit for the regional governments who were previously opposed to the Assad regime. There has been no economic investment from the Gulf countries, and trade with Jordan or Egypt has remained minimal. In the short-term, at least, there has been no “normalisation dividend” to speak of. In addition, the diplomatic normalisation with Assad has not led to any improvement in border security or to a decline in drug smuggling, especially of Captagon and hashish, into Jordan and towards the Gulf countries. Rather, 2023 was a record year for documented drug-smuggling activities as well as increased use thereof by Arab youth in Syria and its neighbouring countries. What is worse, the Assad government has instrumentalised the massive escalation of violence in Israel and the Occupied Territories since 7 October 2023 in two ways: Rhetorically, Assad and other Syrian officials have continuously denounced the Israeli aggression against Palestinian civilians while declaring that they have not been involved in any of the activities of the so-called resistance axis, thereby trying to improve their tarnished image in the region and beyond. Militarily, Assad’s armed forces have led a massive campaign against the Islamist opposition-controlled Idlib region, specifically targeting civilians. In the three months since October 2023, 200 people, mostly children and women, have been killed and over 120,000 internally displaced – happening out of sight and out of mind vis-à-vis Arab and international audiences alike (Haid 2024). Will Iran Go Nuclear after a Trump Victory? During his 2016 presidential campaign, Donald Trump criticised the Barrack Obama administration’s conclusion of the Joint Comprehensive Plan of Action (JCPOA) in July of the previous year. Once in office, in May 2018, the Trump administration unilaterally withdrew from the agreement. The current Joe Biden administration has since unsuccessfully tried to revive the deal; Iran, claiming it is no longer bound by the JCPOA’s provisions either, has since resumed its uranium enrichment. It is now within breakout capacity (Millington 2022). During the current presidential primaries, Trump, who will be Biden’s most likely opponent in the 2024 elections, has again called for a tougher stance on Iran. The higher (nuclear) stakes and Trump’s record of a “maximum pressure” policy towards Iran have raised fears of a potential military conflict should he win a second term in office in fall 2024. While such scenarios are not impossible, their likelihood is overstated in political commentaries. The US’s sanction and embargo policies against Iran have been a constant of the two countries’ relations since the Islamic Revolution of 1979. When a 2003 report by the International Atomic Energy Agency found that Iran was in violation of its safeguards agreement, the issue escalated further. Subsequent US administrations have initiated several new rounds of international sanctions against Teheran – with the stated goal of preventing an Iranian nuclear bomb and a potential arms race in the Middle East. This international pressure eventually brought a new moderate Iranian government to the negotiation table in 2013, resulting in the “nuclear deal” reached between the P5+1 and Iran in Vienna in 2015. However, neither the JCPOA nor its discontinuation have altered the fundamental parameters of the four decades and counting of US–Iranian antagonism. It only temporarily shifted the focus from military posturing towards diplomatic avenues. Even Obama, who championed a new approach “based on mutual interests and mutual respect,” continuously stressed that military options remained on the table. The Trump administration, on the other hand, shied away from limited strikes on Iranian nuclear facilities, let alone an open military conflict with Tehran, despite its “maximum pressure” approach culminating in the targeted killing of Quds Force Commander Qasem Soleimani in January 2020. With these fluctuating tactics, the chances of escalation remain real – whether triggered by an emboldened second Trump administration ordering a pre-emptive strike, an Israeli spoiler play, or Teheran’s conclusion that going nuclear while still under political cover from Russia is the best way to counter an unpredictable US president. In a more favourable scenario, there might be continuity on the American side despite rhetorical grandstanding. Iran could also decide that flaunting its nuclear-threshold status may give it as much leverage as actually crossing the threshold – with considerably less risk. Will the Abraham Accords Survive the Gaza War? The Abraham Accords, signed in 2020 between Israel and the UAE, Bahrain, and later Morocco and Sudan, led to diplomatic normalisation and envisaged cultivating deeper economic, cultural, and technological ties between the respective countries. After the peace agreements reached with Egypt in 1979 and Jordan in 1994, four other Arab countries now entertain diplomatic relations with Israel. Saudi Arabia was rumoured to be set to join their ranks before the Hamas attack on October 7 scuppered that. However, Israel’s ongoing hostilities in Gaza and the unprecedented humanitarian crisis there have sparked concerns about the durability of these accords and the broader trajectory of Israel’s normalisation process in the region. Arab governments that signed normalisation agreements with Israel are facing growing scrutiny and calls for accountability at home, exemplified by citizen-driven initiatives like protests, marches, and online activism. Up to 85 per cent of the population in Gaza have been displaced, and South Africa has launched procedures against Israel at the International Court of Justice (ICJ) in the Hague over accusations of genocide. The vast majority of MENA populaces vocally support the Palestinian cause. Their governments are afraid that pro-Palestinian protests could turn against them in a re-iteration of the Arab Spring and threaten regime survival. This mounting pressure from below has led governments, such as those in Bahrain and Jordan, to recall their ambassadors from Israel, while US-brokered talks between Israel and Saudi Arabia have been suspended. The Abraham Accords came with considerable incentives: The US took Sudan off its list of terrorism-sponsoring states, removed sanctions on it, and also recognised Morocco’s sovereignty over the entire Western Sahara territory. The UAE and Israel have a common interest in high-tech and defence investments, as well as in countering Iran’s regional posturing. The latter was also a major factor in the negotiations between Saudi Arabia and Israel. But the premise of the accords – namely, that sustainable normalisation could be achieved while ignoring the Palestinian question – has proven the populist right-wing Netanyahu government to be misguided. The enduring criticism of the US for its perceived lack of impartiality in the Israeli–Palestinian conflict could tarnish its role as a mediator, potentially affecting its ability to encourage other Arab nations to establish ties with Israel. By signing the Abraham Accords, elites’ political and economic interests took precedence over the concerns and aspirations of their broader publics. Popular discontent remains a powerful social force, compelling governments to re-assess and reconsider these commitments – as seen in the recall of ambassadors, and underscoring the limitations of elite agreements. China In, Europe Out? China–Middle East relations will continue to deepen on two fronts in 2024. Geoeconomically, China’s influence in the region has grown in recent years in various sectors due to its Belt and Road Initiative, while the EU’s – and US’s – regional presence has been in relative decline. According to Chinese customs data, the volume of trade between itself and the Middle East nearly doubled between 2017 and 2022, from USD 262.5 billion to USD 507.2 billion. By 2023, China was the leading import and/or export partner for most countries of the region. For example, it replaced the EU as the Gulf Cooperation Council’s top trading partner in 2020. Key sectors in China–MENA relations include traditional energy, renewable energy, infrastructure, technology and communications (including Huawei’s 5G), fintech, and manufacturing. Geopolitically, two points are worth noting. First, China will continue its policy of non-interventionism. The expensive regional military order is dominated and financed by the US. From the perspective of own national interests, there is no reason why China should change this equation. In 2024 the US will continue to spend more geopolitical resources regionally (thanks to the Gaza War), with China being the biggest economic beneficiary. Second, regarding the “geo” in geopolitics, the region is undergoing a slow pivot away from “the West” and self-identifying with other geographic imaginaries such as “Asia” and the “Global South.” In bilateral and multilateral exchange formats with each other or with Chinese, Indian, and other Global South partners, regional officials are increasingly dropping the term “Middle East” in favour of “West Asia.” They are slowly shedding the Western-centric concept of “the Middle East” (and “Near East”), reconceptualising the region’s geographic identity in a post–Western order world (Forough 2022). Another sign of this trend in recent years is countries of the region actively seeking membership in Asian-led institutions such as the Asian Infrastructure Development Bank, Shanghai Cooperation Organization, and BRICS+. Moreover, the Western powers’ unapologetic support for how Israel has pursued its war in Gaza is going to speed up the regional distancing from the West. MENA countries have been supportive of South Africa’s case at the ICJ, while China has called for an immediate ceasefire and full Palestinian statehood within the framework of a two-state solution. Will OPEC+ Hold? The Saudi-led OPEC and Russia have not been natural allies historically. During the Arab Cold War from the 1950s to 1970s, they saw each other on opposing sides of the ideological divide, with the Soviet Union supporting revolutionary regimes in the Middle East that were hostile to the Gulf monarchies. The Saudi decision in 1985 to stop cutting production and open its oil spigots to regain market share led to collapsing prices. The fiscal impact of this decision on the USSR played no minor part in its eventual demise a few years later. All the more surprising was this odd couple joining forces in 2016. Russia became a member of OPEC+, which agreed to cut oil production. Before a glut caused prices to decline from 2014 onwards, Saudi Arabia had tried to instigate a price war against the newly emerging producers of unconventional tight oil in the US and lost. Yet, the new-found unity between the two oil heavyweights lasted only so long. In early 2020, Saudi Arabia and Russia engaged in a brief price war with each other, before agreeing on renewed OPEC+ production cuts in April of the same year. The US welcomed this step at the time. US producers were facing bankruptcy as the COVID-19 pandemic obliterated oil demand, pushing wholesale prices at the oil-trading hub in Cushing, Oklahoma, into negative territory at one point.    In October 2022, OPEC+ countries cut oil production by two million barrels per day – their first production cut since 2020. This time, the Western powers were outraged that the Gulf countries would collaborate with Russia in the middle of the latter’s war of aggression against Ukraine. However, the Gulf countries have their own national interests. They see opportunities in exploring new partnerships in an increasingly multipolar world. They need to safeguard their fiscal stability and fund development projects for the post-oil age. By the mid-2030s, global oil demand could level off – as, indeed, Saudi Aramco warned in its 2019 IPO prospectus. How will OPEC+ fare when OPEC meets next, in June 2024? All cartels are inherently unstable. Free riders try to benefit from higher prices without maintaining quota discipline and cutting production, like Iraq did during the Arab oil boycott of the 1970s. And then there are the newcomers, encouraged by artificially high prices. If the reduction in oil production in OPEC+ countries continues, the partially lost volumes may be compensated for by increased production in non-OPEC ones such as the US, Canada, Guyana, and Brazil. Traditional producers from the Middle East would lose market share like they did in the early 1980s. Energy transitions will likely impact on oil demand in the medium- to long term as well. If history is a guide, OPEC+ will then falter – albeit in June 2024 it might still be successful in keeping its cartel together for now. How Would Gulf Sovereign Wealth Funds React If the West Seized Russian Assets? Western countries have taken the unprecedented step of freezing USD 300 billion in Russian assets in the wake of the latter’s ongoing war of aggression against Ukraine. Now the G7 wants to discuss at its next meeting in February 2024 going a step further, namely by seizing those assets and using them to pay for restoration work in Ukraine (Tamma and Politi 2023). This is ringing an alarm bell with sovereign wealth funds (SWFs) in the Gulf countries and China, given they hold significant assets in Western capital markets and jurisdictions. The investment authorities of Abu Dhabi, Kuwait, and Qatar belong to the largest SWFs worldwide. More recently, Saudi Arabia has developed its Public Investment Fund into and internationally active investor, rendering it completely different from the passive investor and sleepy holder of domestic assets that it was only a few years back (Roll 2019).    The very term “SWF” was only coined in 2005 at the time of the second oil boom. Gulf SWF assets have since swelled. During the financial crisis of 2007/8, they often acted as white knights for Western banks and companies facing financial turmoil. Heavy investment was thus made in companies such as Deutsche Bank, Barclays, and Volkswagen. The US, with the help of other Western countries, has increasingly weaponised the global financial infrastructure such as the SWIFT payment system (Farrell and Newman 2019). The Gulf countries have not been targeted by Western sanctions like Iran and Russia have, but they have faced such threats in the past. During the Arab oil boycott of the 1970s, the US even threatened to inflict a unilateral food embargo on the import-dependent Gulf countries (Woertz 2013). Against this backdrop, the threatened seizure of Russian assets will likely prompt them to diversify assets away from Western markets. They have already increased the share of emerging markets in their portfolios. The year 2023 also saw increased gold purchases by sovereign entities. So-called petrodollar recycling was a crucial aspect of international financial stability during the oil booms of the 1970s and early years of the new century, but this continuing to happen cannot be taken for granted in the future. This GIGA Focus deviates from the series’ typical format. It is the joint product of several GIGA Institute for Middle East Studies staff members. Eckart Woertz contributed the section on the administration of Gaza after the war, Jens Heibach authored the part on the Yemen War, Mira Demirdirek and Sara Bazoobandi wrote the one on regional elections. Hager Ali addressed Egypt’s growing importance as a mediator, André Bank looked at Syria’s regional re-integration. Nils Lukacs examined the possible implications of a Trump victory on US policy in the MENA. Deema Abu Alkheir authored the section on the future of Israel’s normalisation process with some countries of the region. Mohamadbagher Forough analysed the growing importance of China regionally as Europe struggles to maintain its influence there. The parts on OPEC+ and Gulf SWFs were written by Eckart Woertz and Olena Osypenkova, who also jointly edited this GIGA Focus.

Diplomacy
Israeli soldiers with Palestinian journalists

Israel now ranks among the world’s leading jailers of journalists. We don’t know why they’re behind bars

by Peter Greste

Israel has emerged as one of the world’s leading jailers of journalists, according to a newly released census compiled by the New York-based Committee to Protect Journalists. Each year, the committee releases a snapshot of the number of journalists behind bars as of December 1 2023 was the second highest on record with 320 in detention around the world. In a small way, that is encouraging news. The figure is down from a high of 363 the previous year. But a troublingly large number remain locked up, undermining press freedom and often, human rights. China takes out unenviable top spot At the top of the list sits China with 44 in detention, followed by Myanmar (43), Belarus (28), Russia (22), and Vietnam (19). Israel and Iran share sixth place with 17 each. While the dip in numbers is positive, the statistics expose a few troubling trends. As well as a straight count, the Committee to Protect Journalists examines the charges the journalists are facing. The advocacy group found that globally, almost two-thirds are behind bars on what they broadly describe as “anti-state charges” – things such as espionage, terrorism, false news and so on. In other words, governments have come to regard journalism as some sort of existential threat that has to be dealt with using national security legislation. In some cases, that may be justified. It is impossible to independently assess the legitimacy of each case, but it does point to the way governments increasingly regard information and the media as a part of the battlefield. That places journalists in the dangerous position of sometimes being unwitting combatants in often brutally violent struggles. China’s top spot is hardly surprising. It has been there – or close to it – for some years. Censorship makes it extremely difficult to make an accurate assessment of the numbers behind bars, but since the crackdown on pro-democracy activists in 2021, journalists from Hong Kong have, for the first time, found themselves locked up. And almost half of China’s total are Uyghurs from Xinjiang, where Beijing has been accused of human rights abuses in its ongoing repression of the region’s mostly Muslim ethnic minorities. The rest of the top four are also familiar, but the two biggest movements are unexpected. Iran had been the 2022 gold medallist with 62 journalists imprisoned. In the latest census, it dropped to sixth place with just 17. And Israel, which previously had only one behind bars, has climbed to share that place. That is positive news for Iranian journalists, but awkward for Israel, which repeatedly argues it is the only democracy in the Middle East and the only one that respects media freedom. It also routinely points to Iran for its long-running assault on critics of the regime. The journalists Israel had detained were all from the occupied West Bank, all Palestinian, and all arrested after Hamas’s horrific attacks from Gaza on October 7. But we know very little about why they were detained. The journalists’ relatives told the committee that most are under what Israel describes as “administrative detention”. 17 arrests in Israel in less than 2 months The benign term “administrative detention” in fact means the journalists have been incarcerated indefinitely, without trial or charge. It is possible that they were somehow planning attacks or involved with extremism (Israel uses administrative detention to stop people they accuse of planning to commit a future offence) but the evidence used to justify the detention is not disclosed. We don’t even know why they were arrested. Israel’s place near the top of the Committee to Protect Journalists’ list exposes a difficult paradox. Media freedom is an intrinsic part of a free democracy. A vibrant, awkward and sometimes snarly media is a proven way to keep public debate alive and the political system healthy. It is often uncomfortable, but you can’t have a strong democratic system without journalists freely and vigorously fulfilling their watchdog role. In fact, a good way to tell if a democracy is sliding is the extent of a government’s crackdown on the media. This is not to suggest equivalence between Israel and Iran. Israel remains a democracy, and Israeli media is often savagely critical of its government in ways that would be unthinkable in Tehran. But if Israel wants to restore confidence in its commitment to democratic norms, at the very least it will need to be transparent about the reasons for arresting 17 journalists in less than two months, and the evidence against them. And if there is no evidence they pose a genuine threat to Israeli security, they must be released immediately.

Diplomacy
Expanding the relationships between Russia and North Korea

Foreign Minister Sergey Lavrov’s opening remarks during talks with Foreign Minister of the Democratic People’s Republic of Korea Choe Son-hui, Moscow, January 16, 2024

by Sergey Lavrov

Comrade Choe Son-hui, I am very glad to welcome you and all your delegation members to Moscow in the first days of 2024. I would like to once again congratulate you and our Korean friends on the holidays we have celebrated recently and wish you all the best and every success in the new year. The timing of this meeting provides us with a perfect opportunity to conduct a preliminary review of our efforts to carry out the agreements resulting from the summit between President of Russia Vladimir Putin and Chairman of State Affairs of the Democratic People’s Republic of Korea Kim Jong-un at the Vostochny Space Launch Centre in September 2023. We are proactively working on these matters. I have warm memories of my visit to Pyongyang in October 2023 and the hospitality you extended to our delegation. The 10th meeting of the Russian-Korean Intergovernmental Commission for Trade, Economic, Scientific and Technical Cooperation in November 2023 was another important event. There were also other bilateral exchanges at the agency, ministry, and regional levels. We appreciate the fact that DPRK’s Minister of Physical Culture and Sport, Kim Il-guk, took part in the Russia – A Sports Nation international forum in Perm in October 2023, while DPRK’s Minister of Culture Sung Jong-gyu proactively contributed to the 9th St Petersburg International Cultural Forum in November 2023. The visit by a delegation from the Primorye Territory to Pyongyang, led by Governor Oleg Kozhemyako, in December 2023 was also very useful. These contacts mark the beginning of an intensive and demanding, but also fruitful and rewarding, work to expand our relations across the board. We are preparing several other important events, including on cultural and humanitarian matters. I can mention the upcoming performance by Mariinsky Theatre’s Primorye branch in Pyongyang, as well as the participation of Russian performing groups in the annual April Spring festival. Today, we will have a detailed discussion on topical bilateral matters, including ways to further enhance our practical cooperation. As for the international agenda, we are looking forward to continuing our trust-based dialogue on the situation on the Korean Peninsula and in Northeast Asia in general. Russia reaffirms its principled position on the need to find comprehensive and fair solutions to the existing problems. We have always advocated for talks without preconditions as a path to achieving lasting peace and stability across Northeast Asia. Russia has independently submitted proposals to this effect, as well as together with the PRC, to the UN Security Council. These proposals are currently on the negotiating table. We must recognise that the policy pursued by the United States and its regional satellites to create security threats for the DPRK does nothing to promote any positive advancements. We will continue to call for the rejection of any steps that lead to escalation and heightening tensions. We are working together within a broader geography on security matters in the Asia-Pacific region, where we must uphold universal mechanisms rooted in ASEAN proposals and which have been effectively operating for many decades. However, attempts by the United States and its allies to create closed, bloc-based formats and to expand NATO infrastructure to this region undermine these mechanisms and erode their effectiveness. We have been working closely and very successfully with Pyongyang within the United Nations and at other multilateral organisations. Russia has always supported the DPRK within the UN and appreciates the fact that you have treated Russia in the same manner, including on matters related to the ongoing special military operation in Ukraine. We have a packed agenda, and I am certain that today’s talks will enable us to advance towards delivering on the agreements between our leaders resulting from the September 2023 summit.

Diplomacy
Saudi Arabia's New Approach

Saudi Arabia Needs to See a New Approach from Washington

by Dr. Abdulaziz Sager

Three months after the horrendous events of October 7, the death toll in Gaza continues to mount daily. The humanitarian crisis has been called “unprecedented” and will have lasting effects for generations to come. Moreover, every day the crisis continues, the region faces the potential of multiple conflicts that, unless managed effectively and immediately, threatens to broaden the scope of the calamity beyond what has been seen so far. The escalation is already visible in the Red Sea, with several attacks on international shipping lines putting 12% of the world’s commerce that traverses the Bab El-Mandab strait at risk. These attacks increase the possibility of further regional reactions and instability. While efforts such as the recently announced US-led maritime task force Operation Prosperity Guardian are welcome steps to prevent further incidents from occurring, the issue of maritime security around the world’s chokepoints must be addressed collectively by the international community. Only such combined efforts will send the right message to the concerned states, and to the Houthis in Yemen and other violent non-state actors and prevent more attacks. The rising tensions in the Red Sea are a clear indication of how volatile the security environment in the entire Middle East remains and how quickly developments can escalate. Given the current state of affairs, any incident can further unravel the delicate situation in Lebanon, Syria, Iraq, Sudan, or Libya, to name the most immediate cases. Once the pressure valve explodes, it will be incredibly difficult to reverse the consequences. All the above undermines the efforts by the Kingdom of Saudi Arabia over the past years to de- escalate regional tensions and put relationships on a more cooperative footing. This includes rapprochement with Iraq and Türkiye and pushing for Syria to rejoin the Arab League. Regarding Iran and Yemen, Saudi Arabia has recently reiterated its commitment to peaceful regional relations, including welcoming the UN envoy’s statement on the Yemen Peace Roadmap as well as reiterating its commitment to the Beijing Agreement with Iran. What is therefore required, now more urgently than ever, is a clear meeting of the minds of Washington and Riyadh when it comes to preventing further tragedies. The United States remains the most consequential actor when it comes to the medium to long-term security landscape in the wider Middle East. Yet, its policies over the past decades have been unbalanced, haphazard, and uncommitted and have threatened the long-term stability of the region. Moreover, the US has not listened to the advice of its Gulf allies throughout this period. This must change, or the gap in perception between the two sides will continue to widen. The more pressing issue is the need for a straightforward and clear commitment by the US to end the conflict in Gaza. The US is the only external actor with a measure of influence over Israel, but it has yet to use that influence effectively in ending the hostilities and promoting a more comprehensive and just political solution for the Palestinian issue. Instead of focusing on an Israel- only approach, what this involves is a genuine engagement with all its regional allies to defuse the situation and prevent further escalation. This can best be done if there is adequate and wide-ranging engagement with the Arab world, including with the GCC states. So far, Washington has not uttered the word ‘ceasefire’ even once. This stands in contrast to most of the rest of the international community, including an increasing number of European countries and many Latin American countries, that demand an end to military operations as far as the current violence on the Palestinian-Israeli front is concerned. Any change in rhetoric heard from Washington so far has been inconsequential. This includes the most recent announcement from Israel of a tactical shift in fighting, a step that President Biden had pushed for. The region now expects the US to demonstrate a real and substantive commitment to pursuing a ceasefire as every day this conflict remains, the threat of extremism and a widening regional conflict also increases. The time for shuttle diplomacy for the sake of conducting visits has clearly passed. Additionally, there needs to be a clear commitment to the two-state solution with reference to the Arab Peace Initiative. At the 2023 Munich Security Conference, US Secretary of State Antony Blinken explained about the Ukraine crisis that “there is no neutral position when it comes to a war of aggression...there is no balance.” However, these same principles are not being applied by the US when it comes to Gaza and the wider Middle East. The US refused to listen to the advice of the GCC states twenty years ago in Iraq; Unless it quickly begins to shift its course, it risks making those same mistakes again. Saudi Arabia, as well as most of other Arab states, see no wisdom in the current US regional policy and cannot support an unwise policy. It's not defiance to the US, but a rejection of a short sighted, non- fruitful policy.

Diplomacy
Limited cooperation between Morocco and Israel in the face of the Gaza crisis

Morocco and resolving the Gaza crisis

by Einat Levi

Israel and Morocco mark three years this week since renewing their relations, but the war between Israel and Hamas leaves no room for celebration. For the time being, bilateral cooperation on the governmental level is limited and low profile, focusing mainly on security matters. Despite high expectations from the numerous visits by Israeli ministers and officials to Morocco, these visits have not led to substantial cooperation beyond statements and memoranda of understanding. The lack of focus and the inability to materialize the dozens of signed agreements is evident these days, emphasizing what has not yet been implemented. For instance, an agreement for employing Moroccan migrant workers in Israel has not yet been signed, despite the statement made by the former interior minister Ayelet Shaked in July 2022. Nor has the economic infrastructure to enable business between the countries been completed, namely agreements on customs, double taxation avoidance, promotion and protection of investments, and other systems to enhance the attractiveness and competitiveness of the trade channel between Morocco and Israel. Moroccan decision makers, for their part, appear to regard the ongoing war with Hamas, and no less so the current Israeli government, as detrimental to the resumption of relations between the countries to its positive course. Statements by senior Israeli officials calling for the destruction of Gaza, while vehemently opposing the establishment of a Palestinian state, echo in the Moroccan media, damage Israel’s image, and mainly serve opposition parties who wish to harm the special relations between the two countries. Nevertheless, Morocco’s official position regarding relations with Israel as a strategic interest remains intact. This was evidenced by the results of the extraordinary Arab Islamic Conference held in Riyadh in November, in which Morocco – alongside other key Arab and Muslim countries – was reluctant to embrace actual decisions or actions against their relations with Israel. Morocco’s decision to keep its ambassador in Tel Aviv – despite the Israeli mission staff being evacuated from Rabat – is a significant statement in itself. In the economic field, businesses more or less continue as usual. Israeli companies come to Morocco or meet their partners in third-country destinations such as France and Spain. This discreet arrangement seems convenient for everyone.Tourism has almost completely stopped between the countriesTourism is the most affected sector, with direct flights between Tel Aviv and Rabat still on hold, and a travel warning in effect with a rating of three out of four, advising Israelis to avoid non-essential travel to Morocco. As a result, Israeli and international Jewish tourism to Morocco has almost entirely stopped. This situation is exacting a price from Israeli tourism agencies and Moroccan hotels and service providers. While tourism is a key to people-to-people connections, most civil and cultural partnerships are currently on hold and in a “waiting” situation until the end of the war. Despite the challenges, some joint initiatives can be preserved, finding creative ways to sustain them, such as transferring them from a bilateral framework to a multi-sided one under an American, European, Emirati, or other umbrella, or conducting activities online whenever possible. One of the main challenges in the civil context is the sentiment among Israelis of Moroccan descent regarding Morocco. It ranges from disappointment to astonishment and a lack of understanding in light of images of mass protests from Rabat and other cities in Morocco and even antisemitic incidents that do not receive official condemnation. Here, it should be noted that Israeli frustration is partly due to cultural and behavioral differences between Israel and Morocco, despite their close cultural connection. According to the Moroccan perspective, including that of decision-makers, it is preferable to avoid conflicts, make explicit statements, and deal with matters quietly behind the scenes. In their view, the secrecy of action is a key to success, preserving internal stability and advancing a wishful agenda. That’s because, according to their understanding, one cannot resist what one does not see or know, so ultimately, maintaining quiet preserves the status quo as if nothing has been done. In Morocco, non-action is considered, in practice, equivalent to any action, and perhaps even the most proper and challenging action to execute. Three years after the resumption of official ties, and in the shadow of the Gaza war challenges, the crisis also provides a new opportunity for regional and bilateral cooperation between the two countries. Morocco’s relatively neutral position may in fact enable it to play an important role in the aftermath of the war as part of a broader coalition dedicated to rehabilitation and reconstruction processes. It could help in the reconstruction and in implementing local and regional programs to deal with and prevent extremism and violence. Morocco could assist in the training of Palestinian public employees deployed in Gaza. Morocco could also host forums, meetings, and conferences to support and promote a sustainable solution to the Israeli-Palestinian conflict. The good relations that Morocco maintains with both sides – Israeli and Palestinian – and the religious authority of King Mohammed VI, including his role as the chairman of the Al-Quds Committee in the Organisation of Islamic Cooperation, are just some of the assets Morocco can bring to this complex task. The connection with Morocco is a significant asset for Israel in times of peace and war alike. It is important that we learn and derive insights from the past three years towards the new chapter in relations that will unfold once the war is over.

Diplomacy
Japanese Prime Minister Fumio Kishida during a speech in parliament.

Japanese PM Kishida’s struggle for political survival

by Professor Purnendra Jain , Takeshi Kobayashi

Japanese Prime Minister Fumio Kishida and his Liberal Democratic Party (LDP) are facing one of the worst financial scandals in decades, resulting in growing public distrust of the party and threatening the stability of his government. The Kishida government, which took office in October 2021, was already facing headwinds as its cabinet’s popularity declined due to concerns about the economy, social security and the LDP’s links to the Unification Church. The assassination of former prime minister Shinzo Abe in 2022 during an election campaign further complicates matters. The assailant claimed that Abe supported the Unification Church, which he said caused his family’s bankruptcy and forced his mother into making donations. Many other LDP parliamentarians are known supporters of the Church. Kishida and the LDP are yet to be transparent about this issue. Despite falling popularity, the LDP’s approval ratings hovered in the 30s between October and November 2023. Analysts suggested that, despite his low popularity, Kishida would continue and that there were no imminent threats to his prime ministership. That scenario changed dramatically at the close of November 2023. One poll suggests that Kishida’s cabinet approval rate has plummeted to 17 per cent, marking the lowest prime ministerial approval rating since the LDP regained power in 2012. The drop in popularity occurred after it was revealed that LDP factions and the individual parliamentarians associated with them had failed to report all revenues from ticket sales at fundraising events. The slush fund, estimated to be millions of dollars, was used for political purposes, violating the Public Funds Control Law. The Public Prosecutors Office has launched investigations into the LDP’s largest and most influential faction, the Seiwakai, commonly referred to as the Abe faction. Reports suggest that four other major factions, including the one led by Kishida, might also be implicated. Kishida has replaced four key cabinet ministers from the Abe faction. The position of Chief Cabinet Secretary — which serves as the face of the government — has gone to Yoshimasa Hayashi. Kishida had removed Hayashi from his position as foreign minister and, facing difficulty in persuading other colleagues to assume the Chief Cabinet Secretary position, Kishida opted for Hayashi, a member of his own faction. The other three ministerial positions went to factions led by Taro Aso, Toshimitsu Motegi and Hiroshi Moriyama. The cabinet reshuffle does not address the core problem — money politics. Money politics remains endemic in Japan’s political system, despite past reforms. In the 1970s, former prime minister Kakuei Tanaka resigned due to a bribery scandal. Following Tanaka’s resignation, the LDP sought to regain public trust by turning to ‘Mr Clean’, former prime minister Takeo Miki. But it was not long before another large-scale financial scandal — the Recruit Scandal — emerged in the late 1980s. The scandal led to former prime minister Noboru Takeshita’s resignation, his secretary’s suicide and the resignation of many high-profile politicians. Takeshita’s successor, former prime minister Sosuke Uno, resigned within months following revelations of sexual misconduct. Amid the scandals, the LDP called in another Mr Clean, former prime minister Toshiki Kaifu. But the LDP’s troubles persisted. The 1993 Sagawa Kyubin financial scandal resulted in the arrest and subsequent imprisonment of LDP ‘strongman’ Shin Kanemaru on tax evasion charges. These scandals ultimately led to the LDP’s electoral defeat in 1993, marking what was supposed to be a new era in Japanese politics. But opposition parties have struggled to win government and sustain it. The LDP regained power within two years of its 1993 defeat. Similarly, the LDP returned to government within three years by defeating the Democratic Party of Japan in 2012. Even during the Abe administration, reports of financial scandals emerged. But Abe’s strong popularity allowed him to survive. The current fundraising scandal and its scale are still unfolding. More resignations are likely. Many details regarding the unlawful accumulation of political funds remain unknown. The Public Prosecutors Office may shed light on the scandal after its investigation. Regardless of the outcome of the investigation, Kishida’s position appears untenable. Though not directly implicated like Tanaka, Takeshita and Uno in the past, the public expects Kishida, as President of the LDP, to own up to the rot in the party and step down. Despite the reshuffle of his cabinet and his statement committing to spearhead reforms in the LDP, it will be a political miracle if he survives this scandal ahead of the LDP presidential election in September 2024. The LDP and its Prime Minister face a choice. They can follow the same path as their predecessors by temporarily presenting a ‘clean’ face and then reverting back to business as usual. Alternatively, the new generation of LDP politicians can challenge the established path and set a different course for the party, one that is policy-focused, transparent, less factional and not hereditary. But it remains uncertain whether the new generation of LDP politicians is inclined to take on this challenge. The opposition parties remain weak, fragmented and unable to replace the LDP. Yet they play a crucial role in keeping the LDP government accountable. Without the Japanese Communist Party’s scrutiny, the present fundraising scandal might never have come to light.

Diplomacy
Taiwan National soldiers in parade

What’s at Stake in Upcoming Taiwan Election

by June Teufel Dreyer

BOTTOM LINE • Taiwan’s presidential election is scheduled for January 13, 2024. • A down-to-the-wire effort by two of the three opposition candidates to unite against front-runner William Lai Ching-te failed dramatically, while the third candidate made a grand last-minute exit. • Disarray among the opposition will not necessarily guarantee Lai’s election, with the latest polls showing him barely ahead of his two remaining challengers. • Both challengers, though averring their preference for a strong relationship with the United States, favor warmer relations with Beijing in a manner that may portend some degree of willingness to accept unification with China that would adversely impact US and Japanese security interests • Chinese efforts to influence the vote have included military intimidation, veiled threats of invasion, and disinformation. On Saturday, January 13, 2024, Taiwan will go to the polls to choose itsa next president and 113 seats in the country’s unicameral Legislative Yuan (LY). Current president Tsai Ing-wen is term-limited and at first four, now three, contenders are seeking to succeed her, making this the most contested election since 2000. What’s at Stake for the United States The United States is significantly involved in one war in the Middle East, another in Eastern Europe, and is hence at pains to avoid confrontation in Asia. It has sent two aircraft carrier groups and ammunition to support Israel as well as large quantities of weapons to the Ukrainian government, leaving concerns in both America and Taiwan about how much assistance it could give the country should Xi Jinping decide to attack. Given China’s avowed desire to annex the island by force if Taiwan’s citizens do not agree to unification amicably, and Beijing’s strong reaction to anything that it construes as moves to further legitimize Taiwan’s de facto independence, the Biden administration prefers a Taiwanese president who will avoid both actions that could prompt an attack and measures that would bring the island under Beijing’s control. More than democracy and human rights are at issue: Since Taiwan sits astride sea lanes that are vital for international commerce and security, ceding the country to China would enhance Beijing’s control of both. An estimated 40 percent of world trade passes through the South China Sea, which China has increasingly asserted its control over. Japan, a US treaty ally, has what is arguably an even greater stake in stability in the Taiwan Strait since a Taiwan under Chinese control would bring its territorial waters perilously close to Japan as well as potentially adversely impact the shipping that is so vital to its economy. China also contests control of areas of the East China Sea with Japan. Since Okinawa hosts the only US bases within 500 miles (the unrefueled combat radius of US fighters) from Taiwan, China might well strike those bases at the outset of a conflict. Japanese leaders have explicitly said that a Taiwan emergency is a Japanese emergency and therefore an emergency for the Japan-US alliance. The Dramatis Personae Lai Ching-te (English name William Lai) is Taiwan’s incumbent vice-president and the nominee of the Democratic Progressive Party (DPP). Born in 1959 and the son of a coal miner, he is a medical doctor with expertise in spinal cord injuries, though he has dedicated his later career to politics. Regarded as a lackluster campaigner, he can however point to his extensive record in office as a legislator, then premier, and most recently as vice-president. Hou Yu-ih, born in 1957 and the son of pork sellers, represents the Kuomintang (KMT) or Chinese Nationalist Party. After graduating from the Central Police Agency and obtaining a doctoral degree in crime prevention and corrections, he had a long career in law enforcement before becoming deputy mayor and later mayor of New Taipei City. Hou says that his background in police work is excellent preparation for service as president. Ko Wen-je, born in 1959, is a medical doctor known for his expertise in organ transplants before going into politics. Ko successfully ran for mayor of Taipei as an independent, though with the endorsement of the DPP. In 2019, Ko founded the Taiwan People’s Party (TPP) as a challenge to the KMT and DPP. Terry Gou (Chinese name Guo Tai-ming) was born in 1950. A late entry into the race and formerly a KMT member who twice sought and was twice refused the party’s endorsement for nominee, he then announced he would run as an independent backed by the $7 billion fortune he made as founder of Hon Hai Precision Industries. Hon Hai, known abroad as Foxconn, is the world’s largest contract manufacturer of electronics. His parents, from Shanxi, fled to Taiwan in 1949, with his policeman father having fought for the KMT during the war. Gou believes that his extensive business experience makes him ideally suited for the presidency. Where They Stand All candidates face the dilemma of having to solicit the support of voters who overwhelmingly reject unification with China while not antagonizing China with its oft-repeated vow to achieve the “sacred task” of unification by whatever means. A poll released in late November showed almost no support for this: only 0.7 percent of respondents replied that they supported independence as soon as possible with 11.5 percent advocating maintaining the status quo while working toward unification. By contrast, 35.8 percent supported maintaining the status quo while working toward independence and 44.3 percent favored forever maintaining the status quo. On other issues, as do politicians worldwide, they must be wary of making promises they will find difficult to deliver on if elected. Lai, who has previously described himself as an advocate of Taiwanese independence, is careful to qualify the statement by adding that, since Taiwan is already an independent sovereign state known as the Republic of China, there is no need for a declaration of independence. He has rejected the so-called 1992 Consensus and pledged to continue Tsai Ing-wen’s non-confrontational policies. The 1992 Consensus refers to the outcome of a meeting in Singapore between the allegedly unofficial representatives of the Chinese Communist Party and the KMT, which then governed in the name of the Republic of China. Members of the opposition party objected. The Consensus, a term that did not exist until 2000, eight years later, holds that each side agreed that there is but one China and that Taiwan is part of China, but that each side has its own understanding of what China is: for the CCP, it is the People’s Republic of China; for the KMT, it is the Republic of China. KMT supporters continue to accept the latter definition, while the opposition DPP reject it, arguing that Taiwan is a sovereign state independent of the PRC. In 2010, newly elected president Tsai Ing-wen offered a concession in that she accepted the historical fact of the conference, but Beijing immediately rejected it as “an incomplete test paper.” The only one of the four candidates to support gay marriage, which has been legal in Taiwan since 2019, Lai wore a rainbow-colored scarf and spoke at a large parade in October to celebrate the law, declaring that equal marriage was not the end but the starting point for diversity. None of the other three presidential candidates attended, although the KMT’s youth wing did, with its members shouting that their party also supported equality as they passed by Lai. Hou Yu-ih accepts the 1992 Consensus, though adds that he objects to both a formal declaration of Taiwan’s independence and China’s offer to rule the country under Beijing’s interpretation of the one-country, two-systems formula. In a Foreign Affairs article that was obviously aimed at a US audience, Hou stressed the importance of urging both sides of the Taiwan Strait to jointly promote democracy, human rights, and mutual trust. He accepts, however, the need for deterrence against invasion and that Taiwan must deepen collaboration with the United States in areas such as intelligence sharing and regular joint training exercises. Hou has vowed to defend the Republic of China if it were attacked. It is significant that he did not use the word Taiwan, thereby implicitly endorsing his party’s position on the One China policy. On healthcare, Hou has promised to raise spending levels on national health insurance to 8 percent from its current 6.5 percent. Observers were puzzled at his choosing to emphasize this policy against two rivals who are medical doctors. Lai immediately countered that rather than announce a spending target, Hou should explain specifically what areas should be targeted for improvement and then suggested several that he, Lai, would pursue. Ko Wen-je emphasizes his pragmatism and rationality. On cross-strait relations, he advocates a middle-of-the-road approach that is neither anti-China nor overly pro-China. Ko has called for regular security talks among senior officials from Japan, Taiwan, and the United States regarding China’s intimidation of Taiwan. He argues that cutting off communication with China increases the risk of war and has expressed willingness to sign economic agreements with Beijing while also advocating that Taiwan follow the United States in de-risking. Agreements would be reviewed and referred to the Legislative Yuan for ratification—a backhanded reference to former president Ma Ying-jeou’s effort to push through a trade agreement with China that aroused a massive protest and closed down the Legislative Yuan for weeks. Ko has called on China to propose a new framework for engagement with Taiwan that explains what Beijing has to offer, telling inquisitive foreign reporters that “it’s their obligation [to do so] not mine” and adding that Beijing must also define exactly what it means by One China, whether it be political or economic. While economic cooperation with China is negotiable, he claims that politically there is “nothing we can do,” though he has said elsewhere that confrontation can be eased through dialogue and cultural, sports, and economic exchanges. Ko has also proposed turning the small offshore island of Jinmen, also known as Kinmen, into an experimental zone for peace between Taiwan and China. Critics immediately pointed out that, apart from being unconstitutional, Ko has not explained whether he would countenance suspending Jinmen’s elections, regulating its residents’ freedom of speech due to Beijing’s censorship and insistence on “internet sovereignty,” or imposing social controls on them to conform with Chinese practice. Terry Gou, whose Foxconn has over a million employees in its factories in China, has denounced the Taiwan independence movement while calling for de-escalating Sino-American tensions. He accepts the 1992 Consensus and advocates positioning Taiwan as equidistant from both the United States and China. As of now, it is “like prey on a tightrope”: If either America or China increases tensions even a little bit, Taiwan “will die a horrible death.” Critics believe that Foxconn’s heavy presence in China would make him vulnerable to pressures from Beijing; Gou responded that he has not managed the company’s operations since 2019 and in fact resigned from Foxconn’s board of directors in September 2023. Denying that he has ever been controlled by China, Gou vowed to reply “yes, do it!” if Beijing threatens Foxconn’s assets. As if to test his mettle, two months later, China announced an investigation into the tax and land use of Foxconn subsidiaries in several provinces, without supplying details. Foxconn management replied that it would “actively comply” with the investigators. Gou is an avowed opponent of gay marriage. Now no longer formally a candidate, he has vowed to keep advocating for these policy views. Taiwan does not possess indigenous fuels, so the energy issue is highly controversial. Opponents of nuclear energy argue that a Fukushima-type meltdown would devastate the much smaller and similarly earthquake-prone island. Proponents point out that without nuclear power, Taiwan would become still more vulnerable if it completely depended on imports to keep its heavily trade-dependent economy healthy. Due to a 2016 government decision to phase out nuclear power by 2025, usage has declined from over 20 percent to about 9 percent at present. Most citizens voted in 2021 to reject finishing a partially built plant whose completion has been suspended for three decades. Only Lai has vowed to make Taiwan a nuclear-free country by 2025, although he has not ruled out retaining some nuclear capability in case of emergencies like a Chinese invasion or blockade. All three other candidates claim that the nuclear-free homeland policy has failed, with Hou explicitly saying that he would revive nuclear power, including restarting two already decommissioned units, extending the operational period of a third, and evaluating whether to revive an abandoned fourth nuclear power plant. While warning of power shortages, no candidate has addressed the questions of safety or of finding a long-term solution for storing nuclear waste. Who’s Ahead? Taiwan, perhaps one of the most extensively polled countries in the world, has so many organizations collecting data that the Taiwan News regularly reports a poll of polls. Lai has been the consistent front-runner. Except for briefly exceeding 40 percent after a stopover trip to the United States en route to Paraguay, he until recently polled in the mid-thirties, with Ko and Hou in the mid-to-high twenties and Guo in the low teens. But Lai’s lead has been eroding. More concerning to the DPP, at the end of October Ko and KMT head Eric Chu reached an uneasy agreement—notably, Hou was not present— to share candidates in some constituencies in order to get a majority in the Legislative Yuan. If this succeeds and Lai is elected, the coalition could block Lai’s initiatives, leading to gridlock, as indeed happened during Chen Shui-bian’s presidency. It would also encourage Beijing to court them, as it has done during previous DPP administrations. Since the DPP has been in power for eight years, it has a track record that its opposition and non-committed voters can criticize. Rural citizens interviewed by a Canadian researcher believe that the party has forgotten about them while urbanites complain about inflation and lack of affordable housing and point out that wages have remained stagnant despite healthy growth rates. The youth vote, which had previously been a mainstay of DPP strength, has shown signs of shifting to the TPP. Many, including supporters of the party, believe that a social justice program is badly needed. They accuse the DPP of positioning itself as a progressive party but not behaving like one, urging it to enact policies that meaningfully tax the rich and invest the money in green technology, infrastructure, and innovation. The opposition has said that a DPP victory would mean war with China. Chinese Efforts to Influence the Election Beijing’s least favorite candidate is surely Lai. Rather than overtly interfere, a strategy that backfired badly in the 1996 election, it has tried a mixture of sticks and carrots. Sticks include Chinese fighter jets so regularly crossing the median line in the Taiwan Strait that a new normal now exists, ominous warnings from high military figures, and covert attempts such as disinformation. Carrots include hosting youth delegations to visit China, and a plan to make Fujian province a zone for integrated development with Taiwan, including encouraging Taiwanese firms to list on Chinese stock exchanges and supporting innovative ways of cross-strait capital cooperation. Entry and exit visas for “Taiwan compatriots” are being eased. While such initiatives are above board, some others are not. In late October, Taiwan’s Ministry of Justice Investigation Bureau seized $354.6 million in illegal remittances to candidates regarded as sympathetic to China. Among the conduits were businesspeople, contributions to temple charity events, dummy accounts through unregistered banks, and cryptocurrency. It is difficult to tell how successful these tactics are, with anecdotal evidence indicating that while some people are intimidated by China’s threats, others respond negatively. Taiwanese are well aware of the fate of Hong Kong, where the party-state ruthlessly quashed civil liberties in contravention of the promises it was treaty-bound to honor and often used as a cautionary tale to those few who view unification more favorably. Unexpected Last-Minute Developments At the meeting to discuss cooperation on fielding candidates for the Legislative Yuan, Ko and Hou also discussed having one of them agree to become vice-president while the other would be the presidential nominee. Assuming—a big if—that most of the supporters of one would agree to vote with supporters of the other, they would comfortably beat Lai. The possibility of an alliance at the top was always risky: In addition to each man having a healthy ego that would make subordinating himself to the other difficult, Ko was on record as saying that the things he hates most are “mosquitoes, cockroaches and the KMT.” He founded the TPP as a counterweight to both KMT and DPP, attracting many supporters, particularly among the young, who were disenchanted with the two. While some of the young voters might accept an alliance, others would likely feel betrayed. Whether Ko or Hou would get top billing, they pledged to abide by the opinion polls on who was the stronger. After much discussion, the two settled on accepting six of the nine major polls, but then disagreed on who was ahead based on differing interpretations of the margins of error. Former president Ma Ying-jeou then stepped in to mediate, summoning Ko and Hou to his office on November 24, the deadline for filing for the election. Only Hou appeared, waiting several hours fruitlessly. Ko later agreed to meet at a hotel and even then arrived late as a gaggle of media waited impatiently outside. The result was a dramatic failure with the candidates sniping at each other live on the country’s television networks: They will run separately. The event even upstaged Terry Gou’s also dramatic departure wherein the typically flamboyant Gou announced that although he “might be forgotten by the people,” he had chosen to sacrifice himself for the greater good, showing his “utmost dedication to his homeland.” With barely five weeks before the election, analysts have scrutinized the newly announced vice-presidential picks of the remaining three candidates. Lai has chosen Hsiao Bi-khim, the highly regarded woman who has served as Taiwan’s de facto ambassador to Washington for the past several years. But whether and by how much the choice will increase Lai’s popularity remains to be seen. Beijing has denounced Hsiao as a “diehard secessionist” and says the decision could “mean war for Taiwan,” which could scare some voters. Asked about this at a television interview soon after her selection, Hsiao responded carefully, saying that all Taiwanese reject war and that any candidate “must approach [relations with China] with utmost responsibility.” Hou’s choice for vice-president, the avowed pro-unificationist media executive Jaw Shaw-kong, also has negatives as well as positives. Presumably chosen to appeal to the KMT’s conservative base, Jaw is apt to alienate more moderate KMT members and voters who fear unification. His more assertive personality and markedly different view of unification raise the possibility of friction between him and Hou. Kou’s vice-presidential pick, Cynthia Wu, is likewise problematic. With very little political experience, she has been an executive of a family-founded major life insurance company that has been fined for speculation and questionable land deals. This undercuts the TPP’s claim to be the party that represents the interests of the young and underprivileged. Meanwhile, polls show Lai’s lead over Hou shrinking to about one point, with Ko less than four points behind Hou. At this point, the election is too close to call. Expect the Unexpected? Should it have to live with Lai, Beijing’s least bad scenario would be a divided Legislative Yuan, which would enable it to work with the opposition, as it also has done with previous DPP-led administrations. Assuming, as is likely, that Lai can be trusted to keep his promise to continue his predecessor’s nonconfrontational policies, he is certainly Washington’s preferred candidate. But, as evidenced by the events of the past few weeks, Taiwan’s politics are full of surprises: Neither the United States nor China can be sure that the election will go in its preferred direction. Dealing with democracies is inherently uncertain, for both autocracies and other democratic countries.

Diplomacy
Taro Aso giving a speech in an auditorium

Is JAUKUS a Politically Viable Option in Japan?

by Aurelia George Mulgan

Former Japanese Prime Minister Taro Aso is an outspoken advocate of Japan’s joining AUKUS – as reflected in his recent speech in Canberra to the AIIA. He also has a record of hawkish comments on Taiwan, but how much influence does he wield within the Japanese government and in his own party? Vice-President of Japan’s ruling Liberal Democratic Party (LDP), Taro Aso, was typically outspoken in his speech to the Australian Institute of International Affairs Gala Dinner in Canberra in November, advocating that Japan be added to the AUKUS group. Not only did he claim that Japan’s participation in AUKUS would “contribute greatly” to Australia’s moves to strengthen its submarine capabilities, but he also advanced a strategic argument to justify his position asserting: “Australia is a clear choice” as a new ally for Japan in countering China. He reasoned that as China was out “to control the second line of islands (from Japan’s Izu Islands to Guam) with its maritime power,” this would serve to restrain US naval activities in the region, hence the need for more cooperation among Japan, Australia, and the United States. While explaining that the establishment of a group called “JAUKUS” was “his personal idea,” Aso also argued that it would be “symbolic” and would “send a message” to deter China. He added that Australia and Japan could build allied relations (domei kankei) based on three commonalities: they were both located on the same “vertical line” in the Pacific Ocean; they shared the same democratic philosophy, and they were both US allies. If the three countries were to join forces, “US deterrence in the Indo-Pacific would be doubled, tripled, or even quadrupled.” Japan’s joining AUKUS would also “allow the United States, Australia and Japan to speak with one voice to signal their opposition to a change of Taiwan’s status through force.” Aso has a record of making hawkish comments on Taiwan and a reputation for being one of Taiwan’s strongest supporters among Japanese politicians. In early August 2023 he conducted a three-day visit to the country – the highest ranking LDP official to visit the island since 1972 when Japan officially severed diplomatic ties. The objective of his visit was to underscore Japan’s support for Taiwan by holding talks with President Tsai-Ing Wen and other senior politicians as well as discussing regional security issues, semiconductor supplies critical to the Japanese economy, and other issues relating to economic security. At Taiwan’s Foreign Ministry Aso delivered a lecture on Japan’s defence policy and in a keynote speech at a security forum in Taipei, he argued that “Japan, the United States and other likeminded countries making it clear that they would be prepared to go to war to defend Taiwan…[was] the best way to deter a Chinese invasion.” He declared: “Friendly nations must be prepared to defend the island in the event of a Taiwan emergency….Beijing needs to be convinced that if push comes to shove, we will use our defensive capabilities to defend Taiwan….[adding] Clearly conveying that intention to the other side will serve as a deterrent….for Japan, Taiwan, the United States and other like-minded parties, displaying the resolve to fight will serve as a strong deterrent.” While his remarks appeared to be out of sync with the Japanese government’s “strategic ambiguity” on its response to a Taiwan contingency, Japan’s Mainichi newspaper claimed that Aso had consulted in advance with the Prime Minister’s Office (Kantei), Japan’s Ministry of Foreign Affairs, and the National Security Secretariat about what to say in his speech. Pointing out that Aso was Prime Minister Fumio Kishida’s so-called “guardian,” and that the LDP political heavyweight had played a key diplomatic role in the Kishida administration, the newspaper interpreted Aso’s message as a “carefully worded” warning from the prime minister that although Tokyo was strongly committed to pursuing bilateral reconciliation with China, it had no intention of compromising when it came to national security, including on the issue of Taiwan. These remarks echoed Aso’s clear statement in July 2021 when speaking at an LDP fundraising event as deputy prime minister, finance minister, and member of the National Security Council. He argued that “If a major incident happened [in Taiwan], it would not be strange at all if it touches on a situation threatening [Japan’s] survival. If that is the case, Japan and the U.S. must defend Taiwan together.” In January 2023, he had also called for a drastic strengthening of Japan’s defence capabilities, pointing out that if China were to invade Taiwan, the result could be a military conflict on Japanese territory, including Okinawa, and emphasising to the Japanese public that “one must defend one’s own country.” In his words, “In the event of a Taiwan contingency, it is only natural that the flames of war would fall on Japanese territories close to Taiwan, such as Yonaguni Island in Okinawa Prefecture.” In June 2023 Aso had also met with the Taiwanese Vice-President Wen-tsan Cheng during the latter’s visit to Tokyo where they discussed East Asian security, including the Taiwan situation. In terms of policy standing Aso wields influence as a former prime minister, deputy prime minister, and finance minister, and in terms of political authority wielded within the LDP, he has served as chairman of the party’s Policy Affairs Research Council – its highest policymaking body – and is currently vice-president of the ruling LDP as well as being the leader of the third largest faction in the LDP – the Shikokai. He also ranks second to the LDP’s secretary-general among the top six LDP executives who meet most frequently with the prime minister. He was one of a group of top LDP executives that Prime Minister Kishida consulted in early December 2023 about when to begin collecting the higher taxes necessary to finance a bigger defence budget. Aso, however, opposed the option of submitting legislation to the Diet that would set a schedule for legislation to raise taxes to fund the planned increases in defence spending. Moreover, he will not stay on as LDP vice-president when his current term expires in September 2024. However, having now reportedly “given up” on Kishida and looking to elect current Secretary-General Toshimitsu Motegi as his successor, Aso is endeavouring to remain the “kingpin” in a post-Kishida administration. At the same time, Aso’s views on JAUKUS are far from reflecting a consensus in his own party. In a domestic political context, the option is currently non-viable. Support for Japan’s participation in AUKUS extends no further than a few key figures in the LDP such as Digital Affairs Minister and possible successor to Kishida, Taro Kono, who has expressed strong support for Japan’s participating in AUKUS. Kono was one of the candidates in the race to become prime minister in October 2021 (a month after the launch of AUKUS), and when asked whether Japan should also seek to build nuclear-power submarines with assistance from the US and UK, he stated: “As a capability, it is very important for Japan to have nuclear submarines.” For the time being, however, far from support for the AUKUS option, there would be active resistance from within the LDP led by Kishida against Japan’s participating in AUKUS Pillar One – acquiring nuclear-powered submarines. As long as Kishida is prime minister, he will continue to promote the cause of nuclear disarmament and non-proliferation given his well-known “nuclear allergy,” reflected in his 2020 book entitled Toward a World Without Nuclear Weapons [Kakuheiki no nai Sekai e]. In early December he also vowed to “exercise leadership for the abolition of nuclear weapons” at a meeting of the International Group of Eminent Persons for a World without Nuclear Weapons held in Nagasaki. Moreover, Kishida believes strongly in maintaining a segregated framework of bilateral security relations with each of the AUKUS partners. In the short-to-medium term, the only politically viable option for Japan might potentially be to participate in the expanding field of so-called AUKUS Pillar Two hi-tech, military technology-related capabilities such as artificial intelligence, quantum technologies, hypersonic and counter-hypersonic capabilities, electronic warfare, defence innovation, and undersea capabilities. The Japanese government, for example, is currently promoting the development and use of autonomous underwater vehicles.

Diplomacy
Vladimir Putin with President of the United Arab Emirates Sheikh Mohammed bin Zayed Al Nahyan

Russia-UAE talks

by Vladimir Putin

Vladimir Putin held talks with President of the United Arab Emirates Sheikh Mohammed bin Zayed Al Nahyan in Abu Dhabi. The agenda included the current state of multifaceted Russia-UAE cooperation and prospects for the further expansion of ties, as well as topical international issues with a focus on the situation in the Middle East. Before the consultations began, an official welcoming ceremony for the Russian President was hosted by the President of the UAE at the Qasr Al Watan Palace. Foreign Minister Sergei Lavrov, First Deputy Prime Minister Andrei Belousov, Deputy Prime Minister – Minister of Industry and Trade, Russian co-chair of the Russian-Emirati Intergovernmental Commission on Trade, Economic and Technical Cooperation Denis Manturov, Deputy Prime Minister Alexander Novak, Deputy Chief of Staff of the Presidential Executive Office – Presidential Press Secretary Dmitry Peskov, presidential aides Igor Levitin, Maxim Oreshkin and Yury Ushakov, Russia’s Ambassador to the UAE Timur Zabirov, as well as Head of the Chechen Republic Ramzan Kadyrov, Central Bank Governor, heads of the Roscosmos State Corporation, Russian Direct Investment Fund, Rosatom State Corporation, Rosoboronexport, VEB.RF State Development Corporation, and other officials took part in the talks on Russia’s side. * * * Beginning of Russia-UAE talks President of the United Arab Emirates Sheikh Mohammed bin Zayed Al Nahyan (retranslated): Welcome, my dear friend Vladimir Putin, to the United Arab Emirates. I am glad to see you again. Let me begin by emphasising the historical nature of relations between the Russian Federation and the UAE. Over the past years, we have witnessed a substantial push to develop these relations in various spheres for the mutual benefit of our nations and people. I would like to express my great appreciation for your personal and effective contribution to strengthening our bilateral relations. In this context, I would like to say that the UAE is Russia’s biggest trade partner in the Middle East and in the Gulf Region. Let me note that the UAE is a major investor in the Russian economy. Investment in the non-oil sector increased by 103 percent over the past year. I would like to specifically mention that this is an unprecedented breakthrough which demonstrates the special nature of relations between our countries. I will be glad to continue working together on strengthening bilateral cooperation in various spheres. Of course, promoting development in energy, infrastructure, and high technologies, as well as elsewhere has special priority. In addition to this, I would like to mention that the United Arab Emirates and the Russian Federation have been working together and cooperating within various international frameworks. For example, we work together within BRICS and the Shanghai Cooperation Organisation, where the Emirates were granted dialogue partner status in May 2023. We are also developing and promoting the strategic dialogue between the Russian Federation and the Gulf Cooperation Council. This helps us reinforce our relations and expand them in various spheres, promoting a proactive exchange of views on key international and regional matters, as well as on key items on our bilateral agenda. Once again, Mr President, welcome to the United Arab Emirates. I wish progress and prosperity to the Russian Federation and its people. President of Russia Vladimir Putin: Your Highness, friends, First of all, I would like to thank you for inviting us and for this colourful and friendly welcome. The other day, the United Arab Emirates celebrated the 52nd anniversary of its founding. I want to congratulate you on this and I want to recall that the Soviet Union was among the first to recognise this independent, self-reliant, and sovereign state. Today, our relations – thanks to the position you have taken – have reached unprecedented heights. You and I are in constant contact, and our colleagues work together on a permanent basis. In fact, the United Arab Emirates is Russia’s main trade partner in the Arab world. Last year, trade grew by 67.7 percent. This year, I think, the figures will be even higher. The same goes for investment activity. There is also progress in industrial cooperation, by which I mean cooperation to build certain industrial facilities in the United Arab Emirates and in the Russian Federation. A number of major oil and gas projects are being implemented. We also cooperate through OPEC Plus. We certainly attach due importance to humanitarian ties. Tourist exchanges are making headway: last year, almost one million tourists from Russia – a little over 900,000 – visited the UAE. A Russian school has been opened, and we are grateful to you for ordering land set aside to build a Russian Orthodox church. We also cooperate internationally. As a non-permanent member of the UN Security Council, the United Arab Emirates makes a huge contribution to stabilising the situation in the world. We will certainly discuss with you the situation in the main hot spots, primarily, of course, the Arab-Palestinian-Israeli conflict. I will certainly inform you of the developments in the context of the Ukraine crisis. I am quite pleased that the United Arab Emirates is beginning to work within the BRICS system. In 2024, Russia will chair this organisation. We will continue contacts on this. We look forward to meeting you at the [BRICS] summit in Kazan in October 2024. The UAE is currently hosting one of the world’s most important environmental forums. The first results of the effort to implement the Paris Agreement are being summed up. As expected, you are holding this event at the highest level, and very many people in the world, even those who do not identify themselves with environmental movements, are certainly grateful to you for this work. A Russian delegation is also involved in this work at the highest level. We wish you success. I have no doubt that it will be so. Shukran! <…>