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Good morning. Taiwan has begun targeting Chinese drones flying over its outlying islands for the first time, highlighting the risk that Beijing’s military pressure on Taipei could lead to actual conflict.
Soldiers on Kinmen, a Taiwanese-controlled island just off the Chinese city of Xiamen, shot at a Chinese drone for the first time on Tuesday afternoon, the Army Kinmen Defence Command said. It said the uncrewed vehicle then flew away in the direction of Xiamen.
“According to procedure, we warn, report, try to expel with measures such as flares, and if that fails, we fire shots,” said Major General Chang Jung-shun, spokesman for the command.
The more assertive approach comes as Taipei seeks to balance the risk of sparking outright conflict against its desire to block China from demonstrating effective control over nearby waters and airspace or even Taiwanese territory.
Do you think Beijing’s military pressure on Taipei will lead to conflict? Tell me what you think at firstft@ft.com. Thank you for reading FirstFT Asia — Emily
Five more stories in the news
1. China Communist party sets congress for October The Chinese Communist party will convene what is seen as its most important gathering of the decade starting on October 16, setting the scene for Xi Jinping to secure leadership positions that will give him an unprecedented third term in power.
2. Musk seizes on whistleblower report Elon Musk is using a whistleblower report by Twitter’s former security chief to bolster his legal fight to terminate his $44bn deal to buy the social media company. Musk’s legal team has claimed that if true, Peiter Zatko’s allegations breach several aspects of the merger agreement struck in April but which the billionaire has been seeking to abandon since July.
3. Gorbachev dies aged 91 Mikhail Gorbachev, the last leader of the Soviet Union, has died aged 91, following a “serious and long-term illness,” Russian state media reported, citing a Moscow hospital. A former rural communist apparatchik, Gorbachev ended the Cold War and began democratising the USSR in the 1980s during the perestroika era.
4. Kerry seeks restart to US emissions talks with China The US climate envoy John Kerry praised China’s efforts at tackling global warming and urged Beijing to resume suspended talks on the issue, even as tensions flare with Washington over the status of Taiwan. The former secretary of state urged Xi Jinping to restart climate talks with the US, saying he was “hopeful” the countries could “get back together”.
5. IMF approves bailout package for Pakistan The IMF has approved the disbursement of more than $1.1bn to Pakistan, reviving a stalled $7bn assistance package expected to help stave off default despite a severe economic crunch and devastating floods.
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Related read: Sri Lankan president Ranil Wickremesinghe has said the government will raise taxes and strengthen social safety schemes in a budget designed to help secure an IMF support deal and steer the bankrupt country out of a severe economic crisis.
The day ahead
India GDP The country’s economy is expected to have expanded by 15.2 per cent in the last quarter, according to a Reuters poll of economists. (Reuters)
Evergrande court hearing The embattled Chinese property developer faces a court hearing today in Hong Kong after an investor in its online real estate and automobile marketplace, Fangchebao, filed a winding-up petition against the company.
Nord Stream 1 maintenance Russia will halt gas supplies through its largest pipeline to Germany for three days of maintenance work starting today. Fears that the flow of gas will not resume afterwards, which alarmed German officials the first time this happened, have resurfaced.
What else we’re reading
Rise in Chinese espionage alarms Europe China is already well known for advanced cyber attacks. Now, its human intelligence, or “humint”, skills have acquired a level of sophistication usually associated with Russian espionage, according to eight current and former western intelligence officials, adding to the sense of alarm in the west.
Tough economic times lie ahead If the planned tightening of monetary policy is likely to generate a recession in the US, what might happen in Europe? The answer is that the recessions there are likely to be deep, given that the energy price shock is so large, writes Martin Wolf.
Has Covid-19 made us all sicker? There is already evidence to back up geriatrician Dr David Strain’s concerns that coronavirus has left people susceptible to other conditions ranging from strokes to heart failure. “This is something that we’re going to be facing in a really big way in the near future,” he said.
If you have had Covid-19, have you since suffered from new health conditions? Tell us in our latest poll below.
Hopes for US-China audit deal A deal last week for US regulators to inspect Chinese companies’ audits could prevent about 200 groups from being kicked off American exchanges. US officials — as well as hundreds of Chinese companies and global investors that own about $1.4tn of their shares — are hoping that Beijing’s rare concession is for real.
Actors worry that AI is taking centre stage A range of AI start-ups are developing tools for use in film and audio, from making actors look and sound younger to creating AI voices that can be used for marketing campaigns, consumer assistants or even audiobook narration.
Leadership
“A lot of leaders are not necessarily nice people,” says Jeffrey Pfeffer, professor of organisational behaviour at Stanford University. He tells Stefan Stern the stark truth about management and power, including his seven crucial rules for getting to the top.
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