Good morning, and welcome to the Global Situation Report for Friday, 07 June 2024.
- TAIWAN’S INTERNATIONAL CONFERENCES TO ANGER CHINA: Taiwan held a pair of conferences that are likely to draw a heavy response from China.
- The “2024 Sealine Safety International Conference” started today. It is attended by Vietnam, India, South Korea, the U.S., the U.K., Australia, Japan, and the Philippines and is led by a Democratic Progressive Party minister. The conference’s purpose is to “actively cooperate with partner countries in the Indo-Pacific region to jointly face China’s threat of force.”
- Taiwan held the U.S.-Taiwan Defense Industry Symposium yesterday to promote defense industry cooperation and sales. Twenty-seven U.S. defense contractors attended, including Lockheed Martin Corp, Raytheon Co, BAE Systems PLC, AeroVironment Inc., and Northrop Grumman.
Why It Matters: These conferences will anger China and likely lead to more sanctions on the U.S.-based attendees. Vietnam and India’s attendance at the conference today may encourage China to take action quicker than planned, lest the two nations fully commit to helping Taiwan. – J.V.
- Global Rollup
- China’s People’s Liberation Army Navy conducted a small boat interdiction exercise in the Spratly Islands with a rifle and grenade launcher-armed crew. This is a response to the Philippine Marines aiming firearms at Chinese personnel.
- China stopped buying gold in May after its latest 18-month buying spree. May also saw China buy 16% more copper year-over-year. (Gold has broken its all-time high numerous times over the last six months, and China buys in sprees. Considering the increase in copper, this is likely an adjustment to the material build-up rather than a cessation of it. – J.V.)
- China’s CNGR Advanced Material Company surveyed three Argentine lithium brine deposits last week with the intention of buying. In April, the company bought a 90% stake in a different brine pool in Argentina.
- South Korea suspended the September 19 Military Agreement earlier this week after North Korea’s recent balloon provocation. The agreement sought to “remove all real risks of war on the Korean Peninsula and resolve hostile relations.“
- A Russian frigate, cruise missile submarine, tanker ship, and a rescue tug are scheduled to dock in Havana, Cuba, from 12 to 17 June for a joint exercise. (This is not a routine exercise, as the last instance was in 2019. However, Russia and Cuba regularly conduct exercises. Russia also announced that the submarine is not carrying nuclear-tipped missiles. – J.V.)
THAT’S A WRAP: This does it for today’s edition. Thank you for reading. If you know folks who would also like to receive this email, would you please forward it to them? We appreciate you spreading the word. – M.S.