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China’s arms sales rise as it vies with US for influence on the world stage

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THE rivalry between America and China has seen both sides step up international arms sales and transfers as they seek to strengthen military ties with key allies, according to a report published on Monday.

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The study by the Stockholm International Peace Research Institute (SIPRI), which examined the volume of international transfers of major weapons between 2008 and 2017, showed China’s arms exports represented 5.7 per cent of the world’s share of arms exports between 2013-17 – up by more than a third from the 4.6 per cent recorded between 2008-12.

The report was published a week after China unveiled an 8.1 per cent increase in military spending over a three-year period, although China’s state media defended the rise as proportionate and low, adding that it would not lead to an arms race with the United States.

The administration of US President Donald Trump has dubbed China as a “rival”, and the latest SIPRI report shows how the US has used arms transfers as a foreign policy tool to offset Beijing’s growing influence.

For example, US arms deliveries to India grew by 557 per cent between 2008 and 2017, the year China and India became embroiled in a protracted border dispute over the Doklam region in the Himalayas.

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“This development is part of the growing strategic partnership between the two countries under which the USA has begun to supply India with advanced military equipment,” the report said.

The US has also started to increase its security cooperation with Vietnam, which is embroiled in a dispute with Beijing over the South China Sea.

In 2017 it delivered one patrol ship, the USS Morgenthau, to Vietnam – the first major US arms transfer to that country.

Tensions between China and Japan in the East China Sea also saw Japan moving closer to the US, the report said.

It said Tokyo turned to the US for several types of advanced weapons between 2013 and 2017, including the first batches of a total of 42 combat aircraft.

Japan also ordered advanced air and missile defence systems from the US in the same period.

But in cases where US relations with other countries had deteriorated the result was a fall in arms transfers.

For example, the report said that Venezuela, which once relied on the US as its main arms supplier,

had rebuilt its armed forces with weapons from China and Russia after ties with Washington soured following the Hugo Chavez’s election as president in 1999.

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As China became increasingly capable of producing its own advanced weapons, its arms exports increased by 38 per cent and its arms imports decreased by 19 per cent in 2013-2017 compared with 2008-2012.

The report showed China delivered major arms to 48 countries in the past five years, with Pakistan topping the list, followed by Bangladesh and Algeria.

https://iso.keq.mybluehost.me/why-there-is-crisis-in-nigeria-gani-adams/

“China was the largest arms supplier to Pakistan in 2008–12 and 2013–17. Although the volume of China’s arms exports to Pakistan remained roughly the same in both periods, its share of Pakistan’s arms imports rose from 45 per cent in 2008–12 to 70 per cent in 2013–17 due to the overall decrease in Pakistan’s arms imports between those periods,” the report stated.

The report also said China’s arms exports to Africa rose by 55 per cent over the period.

Military expert Collin Koh, from the S Rajaratnam School of International Studies at Nanyang Technological University in Singapore, said higher value military items like warships and fighter jets were the major reason for the rise in China’s arms exports.

“This is most notable in naval sales. For example, submarines to Pakistan and Thailand, and corvettes to Bangladesh and Algeria. Even with land-based systems, China has also made inroads in higher value sales, such as its long-range rocket artillery,” he said.

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Labour union protests Heritage Bank’s dismissal of 1,000 workers

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The headquarters of Heritage Bank at Victoria Island, Lagos, was besieged on Thursday by members of the labour union, protesting the recent dismissal of 1,000 support workers.

The National President of the National Union of Banks, Insurance and Financial Institutions Employees, Comrade Anthony Abakpa, led the demonstration, condemning the bank’s management for what he deemed a lack of adherence to due process in the termination of employment contracts.

Speaking during the protest, Comrade Abakpa asserted that the leadership of Heritage Bank failed to follow established protocols before executing the mass layoffs.

He emphasised the union’s commitment to pursuing justice for the affected workers, vowing to escalate their demands until the bank’s management rectifies the situation.

“We will intensify our demands for justice,” declared Comrade Abakpa, urging the bank’s management to take corrective action to address the grievances of the dismissed workers.

 

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Nigeria not using foreign reserves to defend naira, says CBN governor

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CBN governor

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, clarified that Nigeria is not utilising its foreign reserves to bolster the naira, despite recent fluctuations in reserve levels.

Speaking from Washington DC, where he is attending the International Monetary Fund-World Bank Spring Meetings, Cardoso highlighted the influx of $600 million into Nigeria’s reserves account within the past two days.

While the naira has experienced a notable appreciation against the dollar in recent weeks, climbing over 40% from approximately N1,900/$ to about N1,000/$1, Nigeria’s foreign reserves have been dwindling. As of April 15, reserves dropped to approximately $32.29 billion, marking the lowest level in over six years.

Cardoso emphasised that the shifts in reserves are typical for any country, where various financial obligations, such as debt repayments, necessitate withdrawals.

He stated, “What you’ve seen with respect to the shift in our reserves is normal in any country’s reserves where, for example, debts are due and certain payments need to be made. They are made because that is also part of keeping your credibility.”

Continuing, Cardoso underscored the dynamic nature of the market, advocating for a system driven by willing buyers, willing sellers, and price discovery.

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He emphasised, “The shift in our reserves has really little or nothing to do with defending the naira, and that is certainly not our objective.”

 

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Dangote Slashes Diesel Price Amidst Economic Optimism

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Dangote Petroleum Refinery has made headlines by announcing a further reduction in the price of diesel, dropping it from ₦1200 to ₦1000 naira per litre.

The refinery’s decision comes on the heels of its recent supply at a significantly reduced price of ₦1200 per litre, which was introduced three weeks ago, signifying a remarkable 30 per cent decrease from the previous market price of approximately ₦1600 per litre.

This substantial reduction in diesel prices at Dangote Petroleum Refinery is expected to reiterate positively throughout various sectors of the economy, potentially serving as a catalyst in alleviating the persistently high inflation rate in the country.

In a statement last week, Aliko Dangote, Africa’s wealthiest individual and the owner of the refinery, expressed his optimism regarding the potential impact of the price reduction on inflation in Nigeria.

“I believe that we are on the right track. I believe Nigerians have been patient, and I also believe that a lot of goodies will now come through. There’s quite a lot of improvement because if you look at it, one of the major issues that we’ve had was the naira devaluation that has gone very aggressively up to about ₦1900,” he remarked.

As anticipation builds around the implications of this move by Dangote Petroleum Refinery, stakeholders and consumers alike remain hopeful for the positive effects it could bring to the Nigerian economy in the coming months.

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