US to complete review into AUKUS defence pact in autumn
The Pentagon building is seen in Arlington, Virginia, U.S. October 9, 2020. REUTERS/Carlos Barria
SYDNEY - The United States will complete a review into a defence pact with the United Kingdom and Australia in the northern hemisphere autumn, the office of a top Pentagon official said on Wednesday.
U.S. President Donald Trump's administration said in June it had launched a formal review into the AUKUS defence deal - worth hundreds of billions of dollars - that will allow Australia to acquire U.S. nuclear-powered submarines, causing alarm in Canberra.
The review into the 2021 deal struck during the Biden administration is being led by Under Secretary of Defense for Policy Elbridge Colby, a public critic of the pact.
Colby's office said in a post on X on Wednesday (Tuesday EST) the review will be an "empirical and clear-eyed assessment" of the deal.
"The Department anticipates completing the review in the fall," the post said.
"Its purpose will be to provide the President and his senior leadership team with a fact-based, rigorous assessment of the initiative."
AUKUS is Australia's biggest-ever defence project, with Canberra committing to spend A$368 billion ($240 billion) over three decades to the programme, which includes billions of dollars of investment in the U.S. submarine production base.
Top stories
Swipe. Select. Stay informed.
Asia Japan issues tsunami warning after 8.7-magnitude earthquake strikes off Russia
Business MAS keeps Singapore dollar policy unchanged amid US tariff risks to economy
Business Cathay Cineplexes ropes in restructuring specialist as more payment demands pile up
Opinion Nobel Prize? Maybe not, but give Asean credit for Cambodia-Thailand ceasefire
Asia Fragile Cambodia-Thailand truce faces challenges on day one
Singapore Grace Fu apologises for Tanjong Katong sinkhole, says road may stay closed for a few more days
Business No clarity yet on baseline or pharmaceutical tariffs with US: DPM Gan
Singapore Facts and myths intersect at the National Museum's new glass rotunda installation
Colby, the Pentagon's top policy adviser, said last year that submarines were a scarce, critical commodity, and U.S. industry could not produce enough to meet American demand.
Australia, which this month paid A$800 million to the U.S. in the second instalment under AUKUS, has maintained it is confident the pact will proceed.
Australia and Britain on Saturday signed a bilateral 50-year submarine pact, that they said builds on the AUKUS alliance with the U.S. REUTERS
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
2 hours ago
- Business Times
US dollar tumbles;traders bet on more US rate cuts after weak jobs report
THE greenback dropped on Friday (Aug 1) and was on track for its biggest daily loss against the yen since January 2023 after data showed that US employers added fewer jobs in July than economists had expected. At the same time, last month's jobs gains were revised sharply lower, leading traders to ramp up bets on how many times the Federal Reserve is likely to cut rates this year. Employers added 73,000 jobs last month, below the 110,000 expected by economists polled by Reuters, while the unemployment rate edged higher to 4.2 per cent, as anticipated, up from 4.1 per cent in June. Job gains for June were revised down to 14,000, from the previously reported 147,000. 'It's worse than anyone expected and the kicker is that downward revision for the prior month too,' said Helen Given, director of trading at Money USA in Washington. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was last down 1.23 per cent on the day at 98.80. The euro rose 1.37 per cent to US$1.1571 and was on track for its biggest daily gain since April. The single currency reached US$1.1389 earlier on Friday, the lowest since Jun 10. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Against the Japanese yen, the dollar weakened 2.23 per cent to 147.37. The greenback earlier reached 150.91, the highest since Mar 28. The Fed has indicated it is in no rush to cut rates due to concern that President Donald Trump's tariff policies will reignite inflation over the coming months. Fed funds futures traders pared bets on how many times the US central bank is likely to cut rates this year after Fed chairman Jerome Powell on Wednesday offered a hawkish outlook for monetary policy and declined to indicate that a cut in September was likely. But they ramped up bets on cuts again on Friday after the jobs data. Traders are now pricing in 63 basis points of cuts by year end, up from around 34 basis points on Thursday, with the first cut seen in September. The dollar extended its drop on Friday after the Fed said governor Adriana Kugler was resigning from the Federal Reserve effective Aug 8. Trump on Friday also ordered that the commissioner of the Labor Department's Bureau of Labor Statistics Erika McEntarfer be fired after the weaker than expected jobs data and downward revisions. Whether the Fed cuts in September may now depend on the next jobs report for August. '(Powell) did say on Wednesday that we were looking at holding rates steadier for longer, but that we were going to get two sets of employment data before the next Fed meeting. So as this first set has been so decidedly negative… the labour market is clearly, clearly cooling, that's going to raise the importance of that September figure as well,' said Given. The August jobs data will be released on Sep 5, with the Fed due to meet on Sep 16-17. A more dovish Fed would likely be negative for the US currency, even after it has appeared to find its footing in recent weeks following a rough first half of the year. 'Our forecast for the dollar to strengthen in the second half of the year relies in large part on our view that the US economy will remain resilient and the FOMC keep policy on hold until 2026,' Jonas Goltermann, deputy chief markets economist at Capital Economics said in a note. 'Plainly, that now looks less probable; in a recession scenario the dollar is likely to weaken against lower yielding currencies such as the yen and the euro, even if it may rally against other, riskier currencies,' he said. The dollar had gained earlier on Friday after Trump imposed new tariff rates on dozens of trade partners. The Swiss franc was among the hardest hit as Switzerland now faces a 39 per cent rate. The Swissie fell against a range of currencies in response to Trump's hefty duties and to his demand that pharma companies – key Swiss exporters – lower the prices at which they sell to US consumers. The dollar was last down 0.9 per cent against the Swiss franc at 0.805, after earlier reaching 0.8171, the highest since Jun 23. The Canadian dollar strengthened 0.43 per cent versus the greenback to C$1.38 per dollar, after earlier easing to C$1.3879, the weakest since May 22. Canada was hit with a 35 per cent tariff, instead of the threatened 25 per cent. The dollar had also gained against other currencies due to drivers other than tariffs. The yen was earlier headed for its largest weekly loss this year after the Bank of Japan signalled it was in no hurry to resume interest rate hikes, prompting Finance Minister Katsunobu Kato to say on Friday that officials were 'alarmed' by currency moves. REUTERS

Straits Times
5 hours ago
- Straits Times
Armed groups attack security force personnel in Syria's Sweida, killing one, state TV reports
Sign up now: Get ST's newsletters delivered to your inbox Armed groups attacked personnel from Syria's internal security forces in Sweida, killing one member and wounding others, and fired shells at several villages in the violence-hit southern province, state-run Ekhbariya TV reported on Sunday. The report cited a security source as saying the armed groups had violated the ceasefire agreed in the predominantly Druze region, where factional bloodshed killed hundreds of people last month. Violence in Sweida erupted on July 13 between tribal fighters and Druze factions. Government forces were sent to quell the fighting, but the bloodshed worsened, and Israel carried out strikes on Syrian troops in the name of the Druze. The Druze are a minority offshoot of Islam with followers in Syria, Lebanon and Israel. Sweida province is predominantly Druze but is also home to Sunni tribes, and the communities have had long-standing tensions over land and other resources. A U.S.-brokered truce ended the fighting, which had raged in Sweida city and surrounding towns for nearly a week. Syria said it would investigate the clashes, setting up a committee to investigate the attacks. The Sweida bloodshed last month was a major test for interim President Ahmed al-Sharaa, after a wave of sectarian violence in March that killed hundreds of Alawite citizens in the coastal region. REUTERS

Straits Times
6 hours ago
- Straits Times
China can buy Nvidia H20 chips again. But it's not all good news
Sign up now: Get ST's newsletters delivered to your inbox The Cyberspace Administration of China on July 31 flagged concerns about possible 'backdoor' security risks associated with the H20 chips, which American chipmaker Nvidia has denied. – Two weeks after Nvidia's chief executive Jensen Huang mounted a charm offensive to court the Chinese market, the American chip giant found itself once again the centre of attention in Beijing – and not in a good way. 'Nvidia, how can I trust you?' So read the headline of a commentary published by the People's Daily, the communist party's mouthpiece, a day after Chinese regulators summoned on July 31 the company's representatives over what they deemed 'serious security issues' related to its chips. The processor in question, known as the H20, was until recently the most advanced chip that Nvidia could sell to China under US restrictions. Washington effectively banned their exports in April amid an escalating trade war, but said in July that it would allow sales to resume. Some US officials touted the easing of export controls as a negotiating chip in ongoing trade talks with Beijing. But this apparent concession, analysts say, is not necessarily all good news for China. 'The reversal of the H20 ban offers short-term relief for China's artificial intelligence (AI) industry,' said Mr Charlie Dai, a vice president and principal analyst at advisory firm Forrester Research. 'On the other hand, it could slow domestic chipset adoption and impact the pace of technology self-reliance (amid) ongoing geopolitical frictions.' A taste for Nvidia China has been advocating the use of homegrown chips by its companies as part of a broader push for self-reliance, including in key technologies such as AI. Top stories Swipe. Select. Stay informed. Singapore LTA, Singapore bus operators reviewing Malaysia's request to start services from JB at 4am Singapore Despite bag checks and warnings, young partygoers continue to vape in clubs in Singapore Singapore President Tharman meets migrant workers who saved driver of car that fell into sinkhole Singapore Now flying solo, Acres CEO Kalaivanan Balakrishnan presses ahead with wildlife rescue efforts Opinion The charm – and drawbacks – of living in a time warp in Singapore Business UMS Integration becomes first SGX company with secondary listing in Malaysia Singapore Ong Beng Seng to plead guilty on Aug 4, more than 2 years after trip to Qatar with Iswaran Business Decoupling to save on tax? You may lose right to property if ties go awry Despite this, many Chinese AI firms – in particular private tech giants – are said to still prefer using Nvidia's H20s to train and run their models, even though the chips are not Nvidia's most powerful. After the US announced a lifting of its export ban, news agency Reuters reported that Chinese companies were scrambling to buy the H20s, citing sources. It also said that Nvidia had placed fresh orders for 300,000 chipsets from its contract manufacturer amid strong Chinese demand. 'The general sense is that Chinese customers, especially Bytedance, Baidu, Tencent and Alibaba, still prefer Nvidia's solutions, whether it's H20 or whatever comes next,' said Mr Ray Wang, research director for semiconductors, supply chain and emerging tech at advisory firm The Futurum Group. Nvidia's edge over its Chinese rivals – which 'continue to improve' – is manifold for now, he explained. Its hardware has larger memory bandwidth, making it better for inference tasks, or the application of trained AI models that makes them useful in the real world. The company also has a stronger software platform with which to program the chips, as well as more capable networking technology to harness the combined performance of hundreds and thousands of processors, Mr Wang said. Importantly, he added, Chinese firms' rivalry with Huawei – seen as the biggest domestic rival to Nvidia on the chip front – also fuels their preference for the American chipmaker. Huawei has a sprawling business empire that boasts not just chipsets, but also extends to cloud computing and AI model development. This puts them in direct competition with the other tech giants. Mr Wang said: 'So if you're Alibaba or Tencent, do you want to source your most important computing resources from Huawei?' The push for self-reliance Nvidia's current advantages notwithstanding, analysts say that China will simultaneously double down on growing its domestic chip ecosystem – a goal that could be helped by regulators' recent scrutiny of the American firm. The Cyberspace Administration of China had on July 31 flagged concerns about possible 'backdoor' security risks associated with the H20 chips, which Nvidia has denied . A People's Daily commentary released on social media the next day sketched out possible 'nightmare' scenarios associated with such risks, such as electric cars suddenly losing power on the highway. It asked the company to provide proof of the chips' security to alleviate users' worries. The regulators' move 'will likely cause Chinese tech firms to temporarily curb adoption (of the H20) due to fears of potential vulnerabilities and regulatory uncertainty, despite strong underlying demand,' said Mr Dai of Forrester Research. He added that even as companies' continued reliance on Nvidia's superior AI capabilities may sustain some purchases of its chips, he expected firms to simultaneously also accelerate shifts towards domestic alternatives. Mr Su Lian Jye, chief analyst at technology research firm Omdia, said that Chinese firms in recent years had already been buying more homegrown chipsets or developing their own amid sharpening geopolitical tensions. These include China's three major telcos, banks, cloud service providers, and various other state-linked companies, he said. Tech giants including Baidu and Alibaba are also developing their own chips. In recent weeks, following news that Nvidia would once again be allowed to ship H20s to China, local firms have spoken up about strengthening support for homegrown chipmakers. On July 25, AI start-up StepFun, a model developer, announced an 'ecosystem innovation alliance' with several domestic chip companies including Huawei, Cambricon, Moore Threads and MetaX, news outlet Caixin reported. The same day, StepFun released a large language model that was developed with the properties of domestic chips in mind, the report also said. Separately, co-founder of cyber-security company Qihoo 360 Zhou Hongyi said on July 23 that his company had turned to procuring domestic chips, and that its recent purchases had all been of Huawei products, news outlet Yicai reported. The company, which has also branched into AI, is on the US' entity list, which restricts access to American technology. Mr Zhou acknowledged that there was a 'gap' between Chinese chips and Nvidia's, but stressed the need to use domestic processors anyway, in comments that were videoed and uploaded to social media. 'If you don't use them, the gap will always be there,' he said. 'The more (you) use them, the more they will improve.'