
Australia to Recognise Palestinian State in September
Albanese, who made the announcement following a cabinet meeting, said recognition will be predicated on commitments Australia received from the Palestinian Authority, including that Hamas would have no involvement in any future state.
'A two-state solution is humanity's best hope to break the cycle of violence in the Middle East and to bring an end to the conflict, suffering and starvation in Gaza,' Albanese said at a news conference.
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Advancing Australia's Trilateral Partnership With Two ASEAN Neighbors
Fruitful relations between Australia, Indonesia, and Timor-Leste should be consolidated through the establishment of new trilateral mechanisms. In October, Timor-Leste is set to become the 11th member of the Association of Southeast Asian Nations (ASEAN), the most consequential regional grouping to Australia's north. For the first time ever, Canberra will have two ASEAN neighbors. Within the bloc, Indonesia has been the biggest supporter of Timor-Leste's application to join ASEAN. Australia too has been an important supporter of Dili's desire to join the grouping. Good relations with both Timor-Leste and Indonesia are both a strategic and diplomatic imperative for Australia. This is especially the case since regional cohesion falters under the weight of U.S.-China strategic competition and security challenges such as the Myanmar civil war and the Thailand-Cambodia border conflict. Closer communication, consultation and cooperation between Australia and its Southeast Asian neighbors is an investment in our shared future Timor-Leste's accession is an ideal moment for the Albanese government to build momentum for the elevation of the Australia-Indonesia-Timor-Leste trilateral partnership, from the foreign minister to the leadership level. As part of such an arrangement, annual trilateral leaders' and ministerial-level summits should be held, in line with the Indonesia-Australia Comprehensive Strategic Partnership (CSP), which aims to increase and strengthen trilateral meetings between Indonesia, Australia, and Timor-Leste. The trilateral meetings could focus on areas of shared interests and challenges like border security, defense infrastructure and maritime security. For instance, they could together increase their maritime security capabilities by running regular maritime patrols, holding annual joint military exercises, training, and naval port visits. 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Ironically, Timor-Leste was the central factor in the significant decline of Australia-Indonesia bilateral relations in the second half of the 1990s. The 1995 Australia-Indonesia security agreement was torn up by Indonesia in 1999 after the Australian-led multinational invention in East Timor, which had been an Indonesian province since its forcible incorporation in 1976. This marked an all-time low in the bilateral relationship, but in the years since it has been able to recover from this setback and has matured over time. In the 2006 Lombok treaty, Jakarta and Canberra recognized each other's territorial integrity, and they upgraded their strategic ties to a CSP in 2018. Under the new Australia-Indonesia Defense Cooperation Agreement, the two neighbors have pledged to ramp up joint military exercises and training to unprecedented levels and allow both nations to operate from each other's countries for mutually determined cooperative activities. 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Nvidia, AMD to pay 15% of China chip sale revenue to US, official says
(Reuters) -- Nvidia and AMD have agreed to give the U.S. government 15% of revenue from sales to China of advanced computer chips, a U.S. official said on Sunday, in an unusual move likely to faze American companies. U.S. President Donald Trump's administration halted sales of H20 chips to China in April, but Nvidia announced last month Washington had said it would allow the company to resume sales and it hoped to start deliveries soon. Another U.S. official said on Friday the Commerce Department had begun issuing licenses for the sale of H20 artificial intelligence chips to China. Both the U.S. officials declined to be named because details have not been made public. The new levy could also hurt margins for the two companies, analysts warned. Shares of Nvidia and AMD fell about 1% and nearly 2%, respectively, in premarket trade on Monday. The deal to pay the U.S. government from sales in China is unusual for a president and marks Trump's latest intervention in corporate decision-making. Trump harangues company executives to invest in America to shore up domestic jobs and manufacturing, and last week, he demanded new Intel CEO Lip-Bu Tan immediately resign, calling him "highly conflicted" due to his ties to Chinese firms. The U.S. official said the Trump administration did not feel the sale of H20 and equivalent chips was compromising national security. "It's wild," said Geoff Gertz, a senior fellow at Center for New American Security, an independent think tank in Washington, D.C. "Either selling H20 chips to China is a national security risk, in which case we shouldn't be doing it to begin with, or it's not a national security risk, in which case, why are we putting this extra penalty on the sale?" When asked if Nvidia had agreed to pay 15% of revenues to the United States, an Nvidia spokesperson said in a statement: "We follow rules the U.S. government sets for our participation in worldwide markets." "While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide." Nvidia has warned that being unable to supply H20 chips to China could slice $8 billion off sales from its July quarter, while AMD had forecast a $1.5 billion hit to revenue this year owing to the curbs. AMD did not respond to a request for comment on the news that was first reported by the Financial Times earlier on Sunday. "The Chinese market is significant for both these companies so even if they have to give up a bit of the money, they would otherwise make it looks like a logical move on paper," AJ Bell investment director Russ Mould said. "That said, it is unprecedented and there is always the risk the revenue take could be upped or that the Trump administration changes its mind and reimposes export controls." The U.S. Department of Commerce did not immediately respond to a request for comment. China's Foreign Ministry, approached for comment on Monday, said the country had repeatedly expressed its position on the issue of U.S. chip exports. The ministry in the past has accused the U.S. of using technology and trade issues to "maliciously contain and suppress China." The Financial Times said the chipmakers agreed to the arrangement as a condition for obtaining the export licenses for their semiconductors, including AMD's MI308 chips. The report said the Trump administration had yet to determine how to use the money. U.S. Commerce Secretary Howard Lutnick said last month the planned resumption of sales of the AI chips was part of U.S. negotiations with China to get rare earths and described the H20 as Nvidia's "fourth-best chip" in an interview with CNBC. Lutnick said it was in U.S. interests to have Chinese companies using American technology, even if the most advanced was prohibited from export, so they continued to use an American "tech stack." The U.S. official who spoke about the 15% levy said they did not know when the agreement would be implemented nor exactly how, but said the administration would be in compliance with the law. Alasdair Phillips-Robins, who served as an adviser at the Commerce Department during former President Joe Biden's administration, criticized the move. "If this reporting is accurate, it suggests the administration is trading away national security protections for revenue for the Treasury," Phillips-Robins said. Nvidia generated $17 billion in revenue from China in the fiscal year ending Jan. 26, representing 13% of total sales. AMD reported $6.2 billion in China revenue for 2024, accounting for 24% of total revenue. Giving away some revenue from these chips to the U.S. government would bring the gross margins for these processors down by 5 to 15 percentage points, resulting in an impact of "a point or so" to their overall gross margins, Bernstein analysts said in a note.