Council on Foreign Relations
Daily News Brief
August 12, 2021
Top of the Agenda
Beijing Lays Out Plan to Tighten Economic Regulation
The Chinese government published (SCMP) a blueprint for increasing regulation (FT) of economic sectors such as technology and health care over the next five years. The plan suggests that the government will continue to intervene in the tech and education spheres, crackdowns that triggered a market sell-off (CNBC) in recent weeks.

The document says the changes aim to build a modern regulatory environment that will improve Chinese peoples’ livelihoods. Though the plan is unclear about specific actions the government will take, it forecasts stronger antitrust enforcement and new legal frameworks for the digital economy. In parallel, China’s banking and insurance watchdog issued new recommendations (Bloomberg) for marketing, pricing, and privacy protection. Government regulators in recent months have punished firms (CNN) for issues including alleged mishandling of sensitive data and worsening inequality, with tech groups losing tens of billions of dollars in value.
Analysis
Beijing’s recent antitrust efforts are motivated less by worries about the tyrannical nature of monopoly power than by the belief that China’s tech giants are insufficiently committed to promoting the goal advanced by the Chinese Communist Party (CCP) of transformative technological innovation—and thus may be undermining the effectiveness of Chinese industrial policy,” Harvard University’s Josh Freedman writes for Foreign Affairs.  

“We can’t draw too much insight about enforcement and the potential shape of crackdowns from one document or another,” Graham Webster of Stanford University’s Cyber Policy Center tells Bloomberg. “Much depends on what bureaucrats and their higher-ups land on in terms of priorities month after month.”

This Backgrounder lays out challenges facing the CCP.

Pacific Rim
New Zealand to Slowly Reopen Borders in 2022
The country, which has maintained some of the world’s tightest border restrictions throughout the pandemic, announced a cautious plan for reopening (NYT) in 2022. Vaccinated visitors from low-risk countries would be able to enter New Zealand without having to quarantine. 

South and Central Asia
UN Official Warns of Drug Smuggling in Northeastern India
Authorities in the Indian state of Assam have detained almost two thousand people since May in a crackdown on drug smuggling. A UN drug official warned (Reuters) that the situation in the region is reminiscent of Bangladesh’s amid rampant methamphetamine smuggling a few years ago.
 
Sri Lanka: Sri Lankan authorities filed charges (PTI) against 25 people in connection to the 2019 Easter Sunday bombings, in which 258 people died.

Middle East and North Africa
Iraq’s Kadhimi Invites Iranian, Saudi Leaders to Summit
Iraqi Prime Minister Mustafa al-Kadhimi invited the leaders of France, Iran, the United Arab Emirates, and Saudi Arabia to a summit later this month to mediate regional tensions, Axios reports. The initiative follows secret talks between intelligence officials from rivals Iran and Saudi Arabia that began in Baghdad this spring. 
 
Israel: The country will authorize (Axios) new housing construction in the occupied West Bank for both Jewish settlers and Palestinians living in Israel-controlled Area C. The move allows the building of new homes in settlements for the first time in ten months and marks the first time in several years that Israel has authorized Palestinian homes in Area C.
This Day in History: August 12, 1941
The conclusion of the Atlantic Conference between the Allied powers results in the Atlantic Charter, which outlines the United States’ and Britains’ post–World War II goals. The charter inspires many international agreements of the era, including the North Atlantic Treaty Organization (NATO).

Sub-Saharan Africa
Zambians Head to the Polls
The country is holding an election (Bloomberg) today following  campaigning that was widely criticized for restrictions that favor incumbent President Edgar Lungu. Zambia has historically been seen as one of Africa’s most stable states (News24).
 
For the Africa in Transition blog, CFR’s Michelle Gavin writes that the lead-up to the Zambian election was a case study in democratic decline.
 
Madagascar: President Andry Rajoelina suspended his cabinet (AFP) following a surge in inflation and what authorities said was a failed plot to assassinate him. 

Europe
British Man Arrested in Germany on Suspicions of Spying for Russia
German authorities said they arrested an employee (BBC) of the United Kingdom’s embassy in Berlin who they believe passed documents to Russian intelligence at least once. Germany’s foreign ministry said it is taking the case “very seriously.”
 
Italy: Early reports show that a temperature of 119.85°F was registered (Guardian) in Sicily yesterday amid a heat wave. If the World Meteorological Organization accepts the reading as accurate, it will be the highest recorded temperature in European history.
 
For Think Global Health, CFR’s Alice C. Hill looks at how global health is changing as temperatures rise.

Americas
Colombia, Panama to Limit Migrant Transit 
The two countries agreed to cap the number of migrants (AP) that can pass through a jungle area on their shared border at 650 per day in August and 500 per day in September. Panama estimates that more than fifty thousand migrants have come through the route this year, about twice the amount from 2018.
 
El Salvador: The country’s government will propose constitutional changes that include extending presidential term limits (Bloomberg) from five years to six, Vice President Felix Ulloa told local media. 

United States
White House Announces Democracy Summit 
President Joe Biden will convene a virtual summit (AP) in December focused on strengthening democracy around the world. Attendees will include representatives of governments, civil society, and the private sector.
 
In Foreign Affairs, Frances Z. Brown and Thomas Carothers examine the dilemma of crafting a democracy strategy in an age of great-power politics.
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