What We’re Watching: China’s Lehman moment, Malians heart Russia, Tunisian dictator vibes

What We’re Watching: China’s Lehman moment, Malians heart Russia, Tunisian dictator vibes

Will Evergrande be China's Lehman Bros? Chinese authorities are bracing for the increasingly likely default of Evergrande, the country's most indebted property developer. If Evergrande — a gargantuan corporation with properties in 200 cities across China — stiffs its creditors, that'll send shockwaves throughout the country's financial system, and the wider Chinese economy and society. The possible ripple effects on home buyers and countless companies and individuals that do business with or are owed money by Evergrande have invited comparisons with Lehman Brothers, the US investment bank whose 2008 collapse triggered an American financial crisis that quickly spread to the entire world. Although in principle authoritarian China has ways of containing the fallout, the potential for social unrest is real — and opacity could make it worse. More broadly, the demise of such a big player in the country's once-booming real estate market, which accounts for over 7 percent of GDP, would expose the shaky foundations of China's debt-driven economic growth model, eroding confidence in China both at home and abroad.


Et vous, Maliens? First Australia, is Mali next? France can't be happy about what's going on in Mali these days, as protesters have taken to the streets to demand that their government distance itself from Paris and boost ties with Russia instead. The upheaval comes in the wake of reports that Mali's transitional government was about to broker a security deal with the notorious Wagner Group, a Russian private military contractors cozy with the Kremlin. France, a former colonial power which keeps counterterrorism forces in Mali, has sharply criticized any tie-up with the Russian mercs, who have been accused of war crimes elsewhere. But Malians have mixed feelings about the presence of the French troops, who have made scant headway against Islamist insurgents in recent years. As the Franco-Russian competition for influence in Mali spills into the streets, it's a reminder that Moscow has been working hard in recent years to boost its standing in sub-Saharan Africa. Will it pay off in Mali?

Tunisian president to rule by decree: In his latest bid to fix Tunisia's dysfunctional political system, President Kais Saied now says he can pass laws himself and ignore parts of the constitution altogether. This is the same Saied who suspended parliament and sacked the entire government in the wake of mass street protests about the ailing economy and COVID two months ago. At the time, many Tunisians supported his actions as a way to fix the country's broken politics, even if his opponents called it a coup. But now as his emergency period drags on, Saied — a former constitutional law prof — is starting to give off more dictatorial vibes. He says he needs more time to tweak the constitution to make it work for ordinary Tunisians, but a lot of folks are wondering about the president's true intentions now. Tunisia was the only democracy to emerge from the Arab Spring. Is that over?

During the past year, 58% of all cyberattacks observed by Microsoft from nation-states have come from Russia. And attacks from Russian nation-state actors are increasingly effective, jumping from a 21% successful compromise rate last year to a 32% rate this year. Russian nation-state actors are increasingly targeting government agencies for intelligence gathering, which jumped from 3% of their targets a year ago to 53% – largely agencies involved in foreign policy, national security or defense. The top three countries targeted by Russian nation-state actors were the United States, Ukraine and the UK. These are just a few of the insights in the second annual Microsoft Digital Defense Report. Read additional highlights from the Microsoft on the Issues blog and find the full report here.

If you had to guess which current world leader has made the most trips to Africa, who would you say? China's Xi Jinping? Nope, hardly — he's been there just four times. France's Emmanuel Macron? Pas de tout.

The answer may surprise you: it's Turkish President Recep Tayyip Erdogan, who's been to the continent more times than the leader(s) of any other non-African state. Just this week he notched his 28th visit, with stops in Angola, Nigeria, and Togo. Sure, being in power for two decades creates a lot of opportunities for exotic travel, but even Putin isn't close: he's been to Africa just five times, all to visit South Africa or Egypt.

More Show less

Former Libyan strongman Muammar Qaddafi was killed by rebels on 20 October, 2011, after a NATO intervention designed to protect civilians helped strengthen an uprising against his regime. Since then, the country has been mired in chaos as different factions have battled for control, resulting in extensive destruction and human causalities. Libya has been nominally governed since 2014 by warring administrations backed by foreign powers in the west and east of the country. Last year, UN mediation efforts finally began to gain traction with an agreement on a cease-fire and a roadmap for elections to be held later this year. We talked with Eurasia Group expert Ahmed Morsy to find out how things are going.

More Show less

China's GDP grew a lower-than-expected 4.9 percent year-on-year in the third quarter of 2021, a whopping three percentage points less than in the previous period. It's a big deal for the world's second-largest economy, the only major one that expanded throughout the pandemic — and now at risk of missing its growth target of 6 percent for the entire year.

Normally, such a drastic slowdown would have put the ruling Communist Party in a tizzy. But this time, Xi Jinping knows this is the price he must pay for his big plans to curb rising inequality and boost the middle class at the expense of the CCP's traditional economic mantra: high growth above all else.

More Show less

6,000: Poland has doubled the number of troops guarding its border with Belarus to almost 6,000 because of a surge in migrants trying to cross over (there were 612 attempts on Monday alone). Warsaw accuses Minsk of sending non-EU migrants into Poland as payback for EU sanctions against Belarus.

More Show less

Religious tension rising in Bangladesh: Clashes between Hindus and Muslims in Bangladesh have surged over the past week, leaving at least four people dead. After an image was posted on Facebook showing the Quran at the feet of a statue at a Hindu temple, Muslims burned Hindu-owned homes and attacked their holy sites. Both sides have taken to the street in protest, with Hindus saying that they have been prevented from celebrating Durga Puja, the largest Hindu festival in the country. Such acts of sectarian violence are not uncommon in Bangladesh, a majority-Muslim country where Hindus account for nine percent of the population. Indeed, as Eurasia Group's Kevin Allison recently warned, unverified social media content stoking inter-ethnic conflict is a massive problem throughout South Asia, where for many people Facebook is synonymous with the internet.

More Show less

Ian Bremmer's Quick Take:

Read Ian Bremmer's wide-ranging essay in Foreign Affairs that puts in perspective both the challenge, and the opportunity, that comes from the unprecedented power of Big Tech.

Hi, everybody. Ian Bremmer here on the road, something we haven't done very much recently, but will increasingly as we try to move through COVID. And I want to talk to you about a new article that I just put out in Foreign Affairs that I'm calling "The Technopolar Moment." Not unipolar, not bipolar, not multipolar, technopolar. What the hell does technopolar mean?

It means that increasingly big technology companies are themselves geopolitical actors. So to understand the future of the world, you can't just look at the United States, Europe and China. You need to look at the big tech companies, too.

More Show less

China gets away with a lot these days in Hong Kong, Xinjiang, and elsewhere. That's because over the past decade, its economy has experienced explosive growth, making it an indispensable trading partner for almost every country in the world. At the same time, China has been expanding its share of the global economy, and is now set to overtake the US as the world's biggest economic powerhouse in the near term. We take a look at China's annual growth rate and share of the global economy based on GDP over the past decade.

Subscribe to GZERO Media's newsletter, Signal

GZEROMEDIA

Subscribe to GZERO Media's newsletter: Signal

Colin Powell's legacy

US Politics

GZEROMEDIA

Subscribe to GZERO Media's newsletter: Signal