US President Joe Biden has approved a significant $567 million military assistance package for Taiwan, a move aimed at bolstering the island’s defense capabilities as tensions between China and Taiwan escalate.

The package, which includes defense articles, services, and military education, comes at a critical time when Taiwan faces growing pressure from Beijing.u

Although Taiwan does not have formal diplomatic ties with the US, Washington remains its most important ally and arms supplier.

China continues to demand that the US halt arms sales to Taiwan, a demand that the US routinely disregards.

Taiwan’s delayed arms deliveries continue

The military aid announced on Sunday represents a continuation of the US policy of supporting Taiwan’s self-defense. In recent months, Taiwan has faced delays in arms deliveries, including crucial upgrades for its F-14 fighter jets.

These delays have raised concerns about Taiwan’s ability to effectively deter potential aggression from China.

The new package of defense articles is expected to help close some of these gaps and enhance Taiwan’s military readiness in the face of rising tensions across the Taiwan Strait.

China’s response

Beijing’s response to the continued US-Taiwan military cooperation remains unequivocal: China considers Taiwan to be its territory and has ramped up military and political pressure on the island in recent years.

The Chinese government views the US arms sales to Taiwan as a violation of its sovereignty, a claim that Washington and Taipei reject.

With tensions running high, China is expected to issue further diplomatic protests against the recent US military assistance, though it is unlikely to deter Washington from continuing its support for Taiwan.

US-Taiwan relations

Despite the lack of formal diplomatic relations between Taiwan and the US, the two sides have maintained a close security partnership.

The $567 million aid package highlights the growing strategic importance the US places on Taiwan in the broader context of the Indo-Pacific region.

In addition to military support, the US has also been expanding its economic and diplomatic engagement with Taiwan, further solidifying its role as a key partner in the region.

Biden’s aid packages for Taiwan, Ukraine, and Israel

Biden’s approval of the defense package for Taiwan is part of a broader strategy to support allies in key regions around the world.

In April, he signed a bill providing billions of dollars in aid not just to Taiwan but also to Ukraine, as it continues its war with Russia, and to Israel.

This multi-faceted approach underscores the US’s commitment to maintaining its influence and ensuring the security of its partners in various global hotspots.

The US’s latest move to provide military aid to Taiwan reflects its ongoing commitment to the island’s defense despite increasing opposition from China.

The aid package is likely to help Taiwan address some of its critical defense needs in the short term, but the long-term outlook remains uncertain as tensions with China continue to simmer.

As Taiwan continues to build up its military capacity, the risk of confrontation in the region remains a growing concern for all parties involved.

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Pursuit of windfall profits by big Western supermarkets on the back of low wholesale prices is causing widespread labour exploitation in the shrimp aquaculture industries of Vietnam, Indonesia, and India, a new investigation published by AP, has found.

The investigation conducted by an alliance of non-governmental organisations (NGOs) and the findings provided to the publication, focussed on the three countries which are among the largest producers of shrimp.

The analysis reveals that producers supplying shrimp to top global markets—the United States, the European Union, the United Kingdom, and Japan—have seen earnings drop by as much as 60% from pre-pandemic levels.

The drive to meet supermarket pricing demands has forced producers to cut costs, primarily through labor, resulting in unpaid overtime, wage insecurity, and work that does not meet minimum wage standards.

Report paints a stark picture of shrimp workers

Over 500 interviews were conducted with shrimp workers, supplemented by data from secondary sources, to paint a stark picture of the realities faced by laborers in these countries.

In Vietnam, the report highlights workers peeling and processing shrimp for six or seven days a week in freezing conditions to preserve product quality.

Women, who comprise about 80% of the workforce, are particularly affected. Many of them work long hours—rising as early as 4 am and returning home after 6 pm.

Pregnant women and new mothers are permitted to stop one hour earlier, but conditions remain gruelling.

In India, shrimp workers face even more hazardous conditions.

Researchers from the Corporate Accountability Lab found that the use of highly salinated water, combined with chemicals and toxic algae from hatcheries, contaminates the surrounding environment.

Child labor was also uncovered in some areas, with girls as young as 14 recruited for peeling shrimp.

Unpaid labor is widespread, and many workers are paid below minimum wage, face wage deductions, and work overtime without compensation.

Indonesia presents a similar situation, with wages that have fallen sharply since the COVID-19 pandemic.

Shrimp workers, who typically earn $160 per month—below the country’s minimum wage in most regions—are often required to work 12-hour days just to meet basic production targets.

How did supermarkets respond to the investigation?

Some of the world’s largest supermarket chains have been linked to the facilities highlighted in the report, including US retail giants Target, Walmart, and Costco, as well as Sainsbury’s, Tesco, Aldi, and Co-op in Europe.

While Switzerland’s Co-op stated that it maintains a “zero tolerance” policy for labor violations, claiming its producers are paid fair prices, other supermarkets issued more guarded responses.

Germany’s Aldi pointed to independent certification schemes used to ensure responsible sourcing of farmed shrimp, but it did not specifically address pricing practices.

Sainsbury’s deferred to the British Retail Consortium, an industry group, which reaffirmed its members’ commitment to fair pricing and ethical sourcing.

The consortium noted that the welfare of workers in global supply chains is central to purchasing practices.

The Vietnam Association of Seafood Exporters and Producers, however, strongly contested the findings, calling them “unfounded and misleading.”

It emphasized that government policies are in place to protect workers and ensure ethical practices.

Shrimp certification and the hidden labor exploitation model

A critical finding of the report was the role middlemen play in obscuring the source of shrimp, allowing Western supermarkets to maintain ethical commitments without necessarily adhering to them.

According to the report, only about 1,000 of the 2 million shrimp farms in Vietnam, Indonesia, and India are certified by recognized standards such as the Aquaculture Stewardship Council or Best Aquaculture Practices ecolabel.

Given this disparity, it is impossible for certified farms to supply enough shrimp to meet the demand of all the supermarkets claiming to purchase only ethically sourced shrimp.

This gap in certification allows labor exploitation to persist in many parts of the industry.

Can policy changes help improve labor conditions?

According to Katrin Nakamura, who authored the regional report for Sustainability Incubator, Western governments could take more aggressive steps to hold retailers accountable.

Rather than imposing tariffs on suppliers, existing antitrust laws could be used to ensure fair pricing that does not place undue pressure on producers.

She argues that such changes could protect workers while still allowing for competitive pricing for consumers.

In July 2024, the European Union adopted a directive requiring companies to address human rights and environmental issues in their supply chains.

Furthermore, officials from Indonesia and Vietnam have engaged with the report’s authors to explore potential solutions.

The report concludes by noting that the labor exploitation in the shrimp industry is not confined to specific companies or countries.

Nakamura said:

It is the result of a hidden business model that exploits people for profit.

Improving labor conditions would not necessarily raise prices for consumers but would likely reduce supermarket profit margins, she added.

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Billionaire Changpeng Zhao, co-founder of Binance Holdings Ltd., made his first public statement over the weekend after being released from US custody.

In a post shared on social media platform X, Zhao reiterated his commitment to investing in blockchain, artificial intelligence, and biotechnology, emphasizing his long-term vision centered on impact rather than financial returns.

“Focused on impact, not returns,” Zhao says

Zhao, in his post, conveyed optimism about the future, writing, “There are always more opportunities in the future than there were in the past.”

He acknowledged that many people might have questions but said he would take time to reflect before determining his next steps.

“Let me chill for a bit. Then figure out the next steps,” he added, hinting at upcoming plans.

He expressed gratitude for the support he received during his time in custody, noting that it helped him through some of his darkest moments.

Among the updates Zhao shared was his ongoing work on Giggle Academy, a nonprofit online education platform.

He revealed that this initiative will be a major focus in the years to come and highlighted his intentions to dedicate more resources to charitable work and education.

Binance continues to thrive without Zhao

Zhao also reflected on Binance’s current standing, stating that the exchange is performing well even without his direct involvement.

“Oh, @binance seems to be doing well without me back-seat-driving, which is excellent. Every founder’s dream!” he wrote, expressing satisfaction with the company’s ongoing operations.

Binance, the largest digital-asset exchange globally, plays a pivotal role in the trading of cryptocurrencies and related derivatives.

The platform continues to face scrutiny and regulatory oversight, particularly from US authorities.

Legal troubles and $4.3 billion penalty

In November, Binance faced a significant setback after being hit with a $4.3 billion fine as part of a plea agreement to settle US charges regarding regulatory failures that allowed illicit actors, including criminals and terrorist organizations, to use the platform.

Zhao personally agreed to pay a $50 million fine and served four months in custody before his release on September 27 from a correctional facility in California.

Under the terms of the plea deal, Zhao stepped down as Binance’s CEO, handing over leadership to Richard Teng.

The platform now faces years of compliance monitoring by both the US Department of Justice and the Financial Crimes Enforcement Network, a division of the US Treasury.

In addition to his technological investments, Zhao shared plans to focus more on charitable efforts.

He mentioned that he is still in the process of writing a book, which is two-thirds completed, describing the project as more demanding than he initially expected but something he is determined to finish.

With an estimated net worth exceeding $30 billion, according to the Bloomberg Billionaires Index, Zhao ranks among the wealthiest individuals globally, and likely the richest person to have served time in a US correctional facility.

“See you at the conferences”

Despite stepping away from the helm of Binance, Zhao’s influence in the tech and blockchain sectors remains substantial.

He concluded his post with a hint of his future engagement in the industry, stating, “Stay tuned. See you at the conferences.”

As he charts a new course with Giggle Academy and continues to invest in emerging technologies, Zhao’s next steps will be closely watched by the crypto world and beyond.

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Japan’s Nikkei 225 index tumbled by more than 4% on Monday, driven by a combination of underwhelming industrial production figures and the market’s reaction to the election of new Prime Minister Shigeru Ishiba.

The steep decline followed the release of mixed economic data, including a 2.8% increase in August retail sales, which slightly surpassed expectations.

Investors were also responding to the political shift, as Ishiba’s victory reshaped the outlook for Japan’s monetary policy, raising concerns about potential interest rate hikes and their impact on the yen and export-heavy sectors.

Nikkei drops 4% as retail sales rise and industrial output slumps

The Nikkei’s 4% drop occurred despite positive retail sales data, which grew by 2.8% in August compared to the same period last year, beating the expected rise of 2.3%.

The optimism was overshadowed by a sharper-than-expected decline in industrial production, which fell by 4.9% year on year in August.

This marks a notable deterioration from the 0.4% decline recorded in July.

The combination of these figures has left investors uncertain about the broader trajectory of Japan’s economy, with the prospect of increased interest rates under Ishiba’s leadership adding further volatility.

August retail sales rise 2.8%

Japan’s retail sales offered a glimmer of hope with a 2.8% year-on-year increase in August, surpassing estimates and continuing an upward trend from July’s 2.7% growth.

Nevertheless, the industrial production sector saw a sharp decline of 4.9%, significantly worse than the previous month’s 0.4% drop.

The mixed economic signals have made it difficult for investors to gauge the strength of Japan’s recovery, especially as industrial activity struggles to regain momentum.

Incoming PM Shigeru Ishiba raises interest rate hike concerns

The election of Shigeru Ishiba as Japan’s new prime minister has sparked concerns about potential changes to the country’s monetary policy.

Ishiba’s appointment, following a close contest with Economic Security Minister Sanae Takaichi, could see the Bank of Japan (BOJ) face fewer political obstacles in raising interest rates.

A stronger yen, typically resulting from higher rates, would put additional pressure on Japan’s export-heavy economy, making Japanese goods less competitive in global markets.

Weak yen, strong Chinese market pressure Japan’s economy

Adding to Japan’s challenges, the yen has experienced heightened volatility since Ishiba’s election victory, weakening against the dollar before strengthening after his win.

A strong yen poses challenges for Japan’s exporters, already under pressure from declining industrial production.

Meanwhile, China’s surging stock market—fuelled by stimulus measures—has further exacerbated the situation, putting Japan in an increasingly precarious position as it balances domestic economic challenges with external competition.

China’s stimulus lifts markets, pressures Japan’s Nikkei

While Japan’s Nikkei slumped, China’s CSI 300 saw gains of over 6%, buoyed by the country’s stimulus measures and a better-than-expected PMI reading.

China’s central bank has introduced several policies aimed at reviving its economy, including cutting interest rates and lowering reserve requirements for banks.

The resulting surge in Chinese markets has placed further strain on Japan, as investors shift their attention to the growth potential in China, creating an unfavourable comparison for the Japanese market.

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Greece is poised to sell a 10% stake in the National Bank of Greece (NBG) as it continues its broader privatization efforts, which have seen the state reduce its holdings in several major banks over the past year.

The Hellenic Financial Stability Fund (HFSF) announced the price range for the sale on Monday, setting it between €7.30 and €7.95 per share.

Potential to raise up to €727 million

At the upper end of the pricing range, which is slightly higher than last Friday’s closing price of €7.84, Greece could generate up to €727.2 million ($812 million) from the sale, according to a report in Bloomberg.

The books for the transaction are expected to close on Wednesday at 2 pm London time.

This marks a significant step in the country’s banking sector reform, with the Greek government having fully exited other major lenders such as Eurobank Ergasias Services and Holdings, Alpha Bank, and Piraeus Bank in recent months.

While Greece is reducing its stake in NBG, it will retain an 8.4% holding in the bank.

Privatization marks continued economic recovery

This sale comes on the heels of a 22% stake sale in National Bank by the HFSF in November, which raised €1.06 billion.

Greece’s economy has been on an upward trajectory, outperforming many of its European counterparts.

The country regained its investment-grade status last year, a notable achievement after losing it during the 2010 debt crisis.

The non-performing loan ratio in Greek banks has also significantly improved, aligning more closely with European averages.

Another sign of Greece’s return to economic stability is the reintroduction of dividend payments by Greek banks this year, the first time since 2008 that they have been permitted to do so.

European markets open lower amid economic uncertainty

European shares began the week on a cautious note, with the pan-European STOXX 600 index falling 0.1% to 527.47 points by early trading on Monday.

Despite this dip, the index is on track for a third consecutive month of gains, its longest winning streak in seven months.

A stronger oil sector helped mitigate some of the losses, as oil prices rose due to escalating tensions in the Middle East.

Investors are also keeping a close eye on a series of upcoming economic reports, including Germany’s preliminary inflation data for September and similar figures from Italy, as well as Britain’s second-quarter GDP results.

ECB president Christine Lagarde’s comments awaited

Market participants are also awaiting a speech by European Central Bank (ECB) President Christine Lagarde, scheduled for later in the day, which could provide insights into the bank’s policy outlook amid the ongoing economic challenges in the region.

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