Wed Sep 25 00:53:52 UTC 2024: ## China’s Influence Grows in the Pacific, While Economic Woes Continue at Home

**New Caledonia Case Study Highlights China’s Covert Foreign Interference in Pacific**

A new report by Anne-Marie Brady, titled “When China Knocks at the Door of New Caledonia,” examines China’s covert foreign interference activities in the Pacific using the island territory as a case study. The report highlights China’s growing influence in the region and its efforts to gain a foothold in strategic areas.

**China’s Economic Challenges:**

While China seeks to expand its influence abroad, it faces several economic challenges at home. The Chinese yuan has rallied past 7 per dollar for the first time in 16 months, reflecting investor concerns about the country’s economic slowdown.

China’s auto price war has resulted in $20 billion in losses for dealers, and the government is planning to recapitalize its largest commercial lenders for the first time in a decade to address record low margins and rising bad debt.

**Western Nations Counter China’s Influence:**

Western nations are increasingly concerned about China’s economic and military influence. The US, Canada, and other countries are joining forces to break China’s grip on critical minerals, forming a financing network aimed at combating China’s dominance in metal supply chains.

The Biden administration has proposed a rule to block the sale and import of Chinese- and Russian-made hardware and software for connected vehicles.

**China’s Stimulus Efforts:**

In an attempt to boost its struggling economy, China has unleashed a blitz of stimulus, including cutting a key short-term rate and costs for existing mortgages.

However, economists warn that more fiscal help is vital to achieve the government’s growth targets.

**Other News:**

* Taiwan President Lai Ching-te held the first meeting of a civil defense committee to strengthen the island’s resilience amidst growing pressure from China.
* The EU and China are continuing talks to find an alternative solution to tariffs even if member states vote to impose levies on electric vehicles.
* The European Union’s climate chief has stated that the bloc will not allow China to threaten its industry by flooding the market with cheap products.
* Fears of an all-out Israel-Lebanon war continue to rise, while Russia and Iran are using artificial intelligence to influence the American election, according to US intelligence officials.

These developments highlight the complex and evolving dynamics between China and the international community, with economic and geopolitical tensions continuing to rise.

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