Xi Jinping admits to China's troubled economy

Hi Global Recap readers,

Happy New Year!

Did you ring in the New Year with grand festivities like the Parisians, or did you enjoy a nice and warm family time with your close ones in the intimacy of your homes?

Here’s to a wonderful year of more newsletters ahead!

🌐 Around the world:

• 🇨🇳 Xi admits China’s faltering economy.

• 🇮🇱 Israel to partially pull troops out of Gaza.

• 🚢 US navy sinks Houthi boats, Iran retaliates.

• 🇷🇺 Russia’s drone blitz.

• 🇯🇵 Massive tsunami terror returns to Japan.

Let’s get into today’s news.

🇨🇳 Xi Admits Economic Problems

China’s President Xi Jinping surprisingly admits economic problems in his New Year’s Eve speech. This is a stark contrast to their recent censorship of a gloomy economic report.

(More in our previous newsletter)

He said some businesses had a tough time, and some people had difficulty finding jobs and meeting basic needs.

Some?

• Slowdown: China’s factory activity declined in December to the lowest level in six months, according to official data.

• Crackdown: Beijing’s tightening grip on the private sector and tech giants has spooked entrepreneurs and investors, who are hesitant to take a chance on China.

• Reunification: Xi also pledged to reunify China with Taiwan, striking a more pointed tone than last year. Keep in mind, that creating a “common enemy” is a time-tested political strategy to divert citizens from domestic issues.

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🇮🇱 Israel Pulls Back Troops

Israel is partially withdrawing its forces from Gaza, signaling a new phase in the war against Hamas.

The move follows a month-long offensive that killed thousands of people and displaced many more.

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🇺🇸 US Navy Sinks Houthi Boats

The US Navy destroyed three Houthi boats in the Red Sea on Sunday after they tried to board a container ship.

The attack was the second one against the same vessel in 24 hours, and the latest in a series of Houthi strikes on shipping lanes.

• What Happened: US helicopters from two destroyers responded to a distress call from the Maersk Hangzhou and returned fire in self-defense.

• Iranian Response: Iran retaliated by deploying a warship to the Red Sea, escalating tensions and challenging the US.

• Impact: The Houthi attacks threaten global trade and innocent lives and have prompted several shipping lines and oil companies to suspend operations in the area - sparking fears that globally subsiding inflation will make a return.

Note: In the lead-up to the 2024 presidential election, US President Biden has an incentive to ensure that inflation doesn’t make a comeback.

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🚀 Russia’s Drone Blitz

Russia unleashed a record number of drones over Ukraine on the first day of 2024, causing fires, killing and injuring civilians, and destroying cultural sites.

The attacks were in retaliation for the deadly shelling of a Russian border city, which Moscow blamed on Kyiv.

• Drones: Putin deployed 90 Shahed-type drones.

• Intercepted: Ukraine downed 87 drones, but a 15-year-old boy was killed and seven injured.

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Japan

Tsunami Terror Returns to Japan

🌍 Quake Rocks Japan. A powerful earthquake with a preliminary magnitude of 7.6 struck central Japan, causing significant damage and prompting residents in some coastal areas to evacuate. The coastal Noto area in Ishikawa was warned of waves as high as 5m (16ft.). Similar warnings were issued for Niigata and Toyama prefectures.

⏰ When it Happened. The earthquake occurred at 4:10 pm local time. Shortly after, the Japan Meteorological Agency (JMA) issued a tsunami warning for the coastal regions of western Japan.

🏚️ Destruction. The quake destroyed buildings and knocked out power to tens of thousands of homes. So far, the earthquake left four people dead and two critically wounded in Ishikawa prefecture.

🚨 Evacuation Orders. As of Monday night, the Japanese government had ordered nearly 100,000 people in nine prefectures on the western coast of Japan’s main island Honshu to evacuate.

🏭 Impact on Nuclear Plants. The words “earthquake” and “Japan” might instantly conjure up images of the devastating 2011 Fukushima nuclear disaster. Yet, in this instance, the Nuclear Regulation Authority assures no anomalies at Sea of Japan’s nuclear facilities.

🌊 Tsunami Warning Issued. The JMA initially issued a major tsunami warning for Ishikawa prefecture, which was later downgraded to an advisory.

🇰🇷 South Korea Impacted. The impact of the quake was also felt in its neighboring countries of both South and North Korea, as it triggered a series of tsunami waves which the Korean meteorological agency warned could get bigger and last longer than expected.

👟 South Korea’s East Coast. The first tsunami wave to hit Korea was 67 cm (2.2 ft.) high. You may scoff and say this is tiny, but the agency said it could increase in size after the initial waves and may continue for more than 24 hours. Urgent calls for coastal evacuation echo, as Gangwon province advises evacuation to areas higher than a three-story building.

🇰🇵 North Korea Also Warns. Meanwhile, North Korea also issued tsunami warnings for its coast. The North said it expected waves of more than 2 meters (6.6 ft.) to hit its shores and asked its citizens to take precautions. No damage or casualties were reported.

🔮 Future Quake Predictions. JMA official Toshihiro Shimoyama warned that more quakes in the region could occur over the coming days.