All posts by LLD

Chinese Public Security Minister Wang Xiaohong announced plans to train 3,000 foreign law enforcement officers and “deploy police advisors and workstations to countries in need” over the next year. Wang’s announcement was made at the 2024 Global Public Security Cooperation Forum in Lianyungang, Jiangsu Province.

This initiative by Beijing aims to “improve law enforcement capabilities abroad, guide joint patrols and investigations, and address border crimes.” China also pledged “continued financial and operational support” to Interpol and UN peacekeeping missions. The initiative follows China’s “police cooperation agreement” with the Solomon Islands in 2023, which upgraded the relationship between China and the Solomon Islands to one of “comprehensive strategic partnership.”

Wang emphasized China’s willingness to “deepen cooperation with other countries to promote a fairer, more rational, and more efficient global public security governance system.” The move is seen as part of China’s strategy to strengthen its overseas influence and build relationships with foreign countries.

The Global Public Security Cooperation Forum, in its third year, saw increased participation with over 2,000 attendees from 122 countries, regions, and international organizations. It featured 12 sub-forums covering topics such as tourism safety, traffic management, international police education, and urban public security.

A “Global Public Security Cooperation Concept Document” was released outlining ten “cooperation measures” including “the deepening of a multilateral security cooperation mechanisms, combating transnational crime, strengthening global anti-terrorism efforts, and addressing potential risks posed by artificial intelligence.”

Source: Central News Agency (Taiwan), September 10, 2024
https://www.cna.com.tw/news/acn/202409100063.aspx

According to LobbyControl, a non-government organization that monitors lobbying in Germany and other parts of Europe, China’s Huawei spends €3 million annually on lobbying in Brussels and has 12 full-time lobbyists in the EU. Their focus has been on gaining access to 5G network construction, especially in Germany. Huawei has also implemented “youth sponsorship and scholarship” programs to improve its image.

TikTok spends €1.25 million on lobbying in Brussels, employing five full-time lobbyists. In Germany, they spend about €200,000 and have three full-time representatives. TikTok has invested heavily in advertising and sponsorships to enhance its reputation.

Both companies are members of various professional associations in the EU and Germany, aiming to expand their influence. Relationships with think tanks and friendship associations also play crucial roles in their lobbying efforts.

LobbyControl concludes that Chinese tech companies are intensifying their lobbying efforts in the EU, creating complex networks that sometimes lack transparency. While not as aggressive as American tech companies, Chinese firms are becoming increasingly active and influential. They receive support from official institutions within China as well as from German industry.

The report predicts that more Chinese tech companies will enter the European market in the coming years, potentially leading to large-scale lobbying activities if EU policies conflict with their interests. LobbyControl pledges to monitor these developments and push for increased transparency and anti-corruption measures.

Source: Deutsche Welle, August 20, 2024
https://p.dw.com/p/4jgTv

German direct investment in China has seen a significant uptick in 2023, defying the German government’s calls for economic diversification and reduced dependence on China. According to data from the German central bank, German direct investment in China reached €7.3 billion in the first half of 2023 alone, already surpassing the €6.5 billion recorded for the entire year of 2022.

This trend stands in stark contrast to the German government’s new China strategy which, due to geopolitical concerns, advocates for reduced reliance on the Asian economic powerhouse. German media analysis reveals a complex picture of motivations for and consequences following this investment surge.

Major German companies, particularly automakers like Volkswagen, appear to be disregarding government warnings about geopolitical risks. Many are adopting an “in China, for China” strategy, focusing on localizing production and supply chains to serve the Chinese market directly.
Interestingly, the bulk of these investments stem from profits earned within China, with relatively little new capital flowing from Germany. This suggests a self-reinforcing cycle of investments and returns within the Chinese market.

Some experts have expressed concern that German businesses may have not fully internalized the lessons of the Ukraine war and Germany’s previous overdependence on Russia. They warn of potential risks should China-Taiwan tensions escalate, risks which could have devastating consequences for companies heavily invested in China.

In explaining their increased investment, German firms cite China’s importance as a growth market. They argue that investing in China doesn’t necessarily mean abandoning operations in Germany. Critics contend that this strategy might ultimately benefit job creation in China more than in Germany. Domestic factors in Germany, such as high taxes, bureaucratic hurdles, and a growing shortage of skilled workers, are also pushing companies to look eastward for investment opportunities.

Source Radio France International, August 20, 2024
https://rfi.my/AtDa

German newspaper Deutsche Welle published an article that discussed the reason behind China’s growing interest in the Middle East.

The article takes note of the differences between the United States and China’s approaches and roles in the region. Last year, under China’s mediation, Iran and Saudi Arabia restored diplomatic relations. The analysis examines why Chinese leadership has concentrated so much diplomatic energy on the Middle East, arguing that the geostrategic interests centered on oil acquisition have undergone a shift.

Fifty years ago, the US and Saudi Arabia reached a “petrodollar agreement” which established the US dollar as the international reserve currency. With the maturation and widespread use of shale oil extraction technology in the US, however “the region’s (Middle East) oil has become less important to the US.” While the US still imports oil from Saudi Arabia, the volume has declined to less than a third of what it was 22 years ago. Notably, the US has risen from being one of the largest oil importers to the third largest oil exporter.

In contrast, China is now Riyadh’s largest crude oil customer, buying over 20% of Saudi Arabia’s total output. China’s energy security is heavily dependent on the Middle East, and it is also the largest buyer of Iranian oil, accounting for 37% of Iran’s oil exports. China has not joined Western sanctions on the Iranian regime and its state-owned firms have capitalized on the absence of Western companies in the Iranian market.

Amid geopolitical tensions, China is increasingly interested in trading in its own currency rather than US dollars to purchase the coveted oil. Direct RMB settlement also makes sense for many countries in the region as China has surpassed the US as the largest trade partner.

The Deutsche Welle article says that “In the past decade, Beijing has cleverly expanded its influence, filling every vacuum left by Washington. But this also means increased vulnerability, as Middle East political stability aligns with China’s interests due to robust bilateral trade and energy needs. Unlike the US, China does not view Iran as an adversary, nor does it feel a special affinity towards Israel for moral or historical reasons, opening up new operational space for Beijing in the region.”

Source: Deutsche Welle, August 19, 2024
https://p.dw.com/p/4jde8