Tensions Between Brazil and China are Under-appreciated – Ian Bremmer, in a Reuters article, argues that while China and India “aren’t as antagonistic as pundits make them out to be”, there are brewing tensions between China and Brazil that “people don’t fully appreciate”. According to him, “the deepest point of tension is that Brazilian manufacturers are getting killed by cheap Chinese imports that make Brazil’s industry uncompetitive in the global marketplace and at home”. Another example of tensions is related to Brazilian aircraft manufacturer Enbraer. Bremmer says that when Embraer entered into a joint venture with a Chinese state-controlled company, China Aviation Industry Corporation II (AVIC II), another Chinese state-owned company, AVIC I, developed a regional jet that was eerily similar to the Brazilian company’s model. “Embraer saw firsthand how intellectual property can be siphoned and investment treaties can be disregarded in China”.
OECD Says Global Economy is Rebounding – The Organization for Economic Cooperation and Development (OECD) said on Wednesday that the global economy is slowly regaining strength, driven largely by the economic rebound of the United States and Japan. Based in Paris, the OECD predicted that GDP in its 34 member countries will grow by 1.2 percent this year. The organization reiterated that unemployment in Europe remains a serious challenge, and “warned European countries that failing to address the issue would undermine the progress made from the fiscal and structural adjustments that many countries have pushed through in recent years”. US GDP is slated to rise 1.9 percent this year and 2.8 percent next year, while Japan’s will increase 1.6 percent this year and 1.4 percent next year, according to the OECD.
Taliban Leader Killed by US Drone in Pakistan – Reuters reports that a American drone strike has killed Waliur Rehman, the deupty commander of the Tehreek-e-Taliban Pakistan (TTP). This was the first such attack since the May 11 general elections in Pakitan. Wali-ur-Rehman was poised to succeed Hakimullah Mehsud as leader of the Pakistani Taliban. The news has been confirmed by Pakistani security and intelligence sources, but has not been confirmed or denied by American government. “We are not in a position to confirm the reports of Waliur Rehman’s death,” White House spokesman Jay Carney said.
Nawaz Sharif Has “Surprises in Store” – Pakistan’s Express Tribune says that according to sources privy to the details, PM-designate Nawaz Sharif will make some surprise announcements in his inaugural address after taking charge as Prime Minister on June 5. The newspaper said that “all participants at the meeting decided that it was essential for ‘revolutionary’ announcements to be made in the address”. Sharif is expected to provide a 30 day plan in the address, where he will announce a cut of up to 30 percent in non-development expenditure. The speech will also include “talk of the government’s modus operandi for negotiations with the Taliban and the impact on Pakistan of Nato forces’ withdrawal from Afganistan”.