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A new Suez crisis threatens the world economy - The Economist   

Editor’s note: on December 18th Lloyd Austin, America’s defence secretary, announced the formation of a naval mission involving ten countries to protect commercial shipping in the Red Sea.

OVER A THOUSAND MILES from Gaza, a naval crisis is unfolding that could transform the war between Israel and Hamas into a global affair with implications for the world economy. Since December 15th four of the world’s five largest container-shipping companies, CMA CGM, Hapag-Lloyd, Maersk and MSC, have paused or suspended their services in the Red Sea, the route through which traffic from the Suez Canal must pass, as Iran-backed Houthi militants, armed with sophisticated weapons, escalate their attacks on global shipping flows. As one of the world’s major trade arteries suddenly closes, America and its allies are ramping up naval activity in the Middle East, and may even attack the Houthis, in order to re-establish free passage.

Bab al-Mandab is a narrow strait between Africa and the Arabian peninsula through which an estimated 12% of global trade by volume normally flows, and perhaps 30% of global container traffic. It has become a no-go zone as the Houthis, based in Yemen, attack shipping, ostensibly in support of the Palestinians in Gaza. The strikes have been going on for weeks but have now escalated sharply. On December 15th the Houthis threatened to attack one ship, struck another one with a drone and launched two ballistic missiles at the MV Palatium III, one of which hit the vessel. The attack on the Palatium III was the first ever use of an anti-ship ballistic missile. All the ships were Liberian-flagged. On December 16th an American naval vessel, USS Carney (pictured), shot down 14 drones over the Red Sea while a British ship, HMS Diamond, destroyed another.

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The dangers of carrying a child for someone else in China - The Economist   

FAKE BIRTH certificates have long been a hot (if niche) commodity in China. In past decades couples would seek them out in order to get around the one-child policy. They could legally have two children if they were twins—or if their counterfeit papers stated as much. The one-child policy was loosened in 2016. But fake birth certificates remain in demand. Several hospitals are suspected of selling them. Some believe human-traffickers are the buyers. But investigators are eyeing another group: people who have babies via surrogates.

Surrogacy falls into a legal grey area in China. The state often says that the practice is banned; but there is no law against being a surrogate or hiring one. Yet doctors and hospitals that facilitate it are punished. Selling eggs, sperm or embryos are also crimes. And surrogacy contracts are not recognised by the state. That is where the bogus documents come in. A birth certificate is needed to obtain such things as health insurance, social security and household registration (see Chaguan). The fake ones allow non-biological children to officially be part of their new families.

For a country with a shrinking population, China’s approach to surrogacy is rather counterproductive—to say nothing of its effect on families. With couples waiting longer to have children, demand for surrogacy in China seems to be growing. By one estimate, over 10,000 babies are born via the process every year in the country. But the path clients and their surrogates must navigate is full of risks.

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