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China Continues Active Investment in “Belt and Road” Countries

On November 15, the spokesman for the Chinese Ministry of Commerce said at a press briefing that China is continuing active investment cooperation with the countries along the “Belt and Road.” In the first ten months of this year, China made new additional investments in 55 countries along the “Belt and Road,” totaling US$11.9 billion, or a 6.4 percent growth on a year-over-year basis. The total contractual value of newly signed projects in the countries along the “Belt and Road” was US$80.91 billion, accounting for 48.1 percent of the total in the same period; the accomplished turnover of the new projects was US$65.33 billion, or 53.7 percent of the total.

In the first ten months of the year, Chinese investors conducted non-financial direct investment of US$89.57 billion in 4,905 overseas enterprises in 155 countries and regions, registering a year-on-year increase of 3.8 percent.

Source: Chinese Ministry of Commerce, November 15, 2018
http://www.mofcom.gov.cn/xwfbh/20181115.shtml

Briefings | | |   Geo-Strategic Trend

BBC Chinese: Asian Stock Markets Declined after China’s New Promises

BBC Chinese recently reported that the China International Import Expo (CIIE) started on November 5. In a keynote address, Chinese leadership made promises to open up the country’s domestic market and to lower tariffs. China intends to broaden its imports and strengthen the protection of intellectual property. In the next 15 years, China expects to import over US$30 trillion worth of goods and US$10 trillion worth of services. However, many experts pointed out that China’s promises lacked tangible action items and a clear timetable. The nearby Asian stock markets reflected the concerns of the analysts. Immediately after the CIIE opening keynote address, Hong Kong’s Hang Seng Index fell 2.65 percent, while both the Shanghai Composite Index and the Shenzhen Component Index fell more than 1 percent. The Tokyo stock market fell 1.3 percent, and Singapore fell 1.8 percent. Right before the CIIE, these stock markets all increased due to the fact that U.S. President Trump commented positively on an on-going dialogue with China. However, the Chinese message appeared to be disappointing.

Source: BBC Chinese, November 5, 2018
https://www.bbc.com/zhongwen/simp/chinese-news-46094238

Briefings | | |   Economy/Resources Geo-Strategic Trend

European Union Chamber of Commerce: EU Lost Confidence in Xi’s Promises to Open China’s Market

Radio France Internationale reported that, at the China International Import Expo (CIIE), Chinese President Xi Jinping made a commitment to continue to open up the Chinese market and give fair treatment to foreign companies doing business in China. The statement did not augment the EU’s confidence in China. Carlo D’Andrea, vice president of the European Union Chamber of Commerce in China and chairman of the Shanghai Chapter expressed his disappointment on Tuesday. In the statement that the European Union Chamber of Commerce issued, he pointed out that much of the content in the speech that Xi delivered echoed what had previously been announced. There were two developments in the speech that were noted, which were removing caps on foreign investments in education and in medical services. According to the RFI article, the European Union Chamber of Commerce in China believes that, since the previous commitments have not been fulfilled, the European Union has become increasingly insensitive to the promises that China has made. Kenneth Jarrett, the President of the Shanghai office of the American Chamber of Commerce in China, said that so far, as the world’s second largest economy, China should be able to open its doors. According to Andrea, China will not be considered to have made a major and positive structural change until it allows international companies to compete with Chinese companies on an equal basis. In his interview with Bloomberg, Andrea said that Xi promised to open up China’s market during the Davos Forum in 2017 but many promises have not been fulfilled. The EU believes that China has more than one hundred restrictions on foreign companies in China, and the European Union Chamber of Commerce in China recently issued the “Shanghai Proposal 2018-2019,” which details the acts that the EU hopes China can take in order to let Shanghai become one of the world’s financial market centers. “2020 is the time that Shanghai has set for itself to be the center of the world’s financial market, and as of now, there is way too much incomplete homework to do.”

Source: Radio France Internationale, November 6, 2018
http://rfi.my/3Ig6.T

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Sputnik: Russia to Finalize Digital Media Cooperation Plan with China by Summer of 2019

Sputnik reported that, during the 4th Russian-Chinese Media Forum, Alexey Volin, the Deputy Minister of Russia’s Digital Development, Communications and Mass Communication, told the reporter that the Russian side hopes to develop a digital media cooperation plan with China before the summer of 2019. The plan will include about 20 areas of cooperation: jointly organized forums, online conferences, exchanges of content distributed in the digital environment, the production of technical equipment, the development of on-line service software, and conducting collaboration between television and radio. This program aims to find answers for new media in a global digital environment.

Source: Sputnik, November 4, 2018
http://sputniknews.cn/russia_china_relations/201811041026737195/

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RFA: Australian Think Tank Published Report on How Chinese Students or Scholars Steal Military Technology from the West

Radio Free Asia  (RFA) reported that on October 30, the Australian Strategic Policy Institute (ASPI), an Australian think tank, published a report titled, “Picking flowers, making honey.” The report criticized China’s People’s Liberation Army (PLA) for sponsoring Chinese students or scholars to study in the west so they would be able to steal military technology. The report stated that, since 2007, the PLA has sponsored more than 2,500 military scientists and engineers to study abroad and has developed relationships with researchers and institutions across the globe including in such countries as the U.S., the U.K., and Australia. These people often pose as students or scholars in a collaboration project to collect military technology. They hide their military background, and it is difficult for Western countries to understand or learn about their relationship with the Chinese military. These people usually do not directly contact the military personnel in the host country. The research cooperation projects they participate in are usually concentrated in the fields of emerging technology or military and civil science, such as quantum physics, signal processing, cryptography, navigation technology, artificial intelligence, etc. They secretly collect relevant technology. Meanwhile in the past five years, the number of research reports that Chinese military researchers and British and American scientists have published has been more than the number of research reports that  scholars from any other country have published. The report also pointed out that, since the Western academic environment is open, it is very difficult to prevent the CCP military personnel from stealing key technologies at the academic level. When many scholars of the Chinese military participate in scientific and technological research projects in Western countries, they often bring research funding as well.

A former Chinese Army Naval Intelligence Officer told RFA that major universities in mainland China have national defense students. These students have to sign confidential contracts with the military after they enter the university. Many scientific and technical personnel in the military are national defense graduates.

China’s official media Huanqiu condemned the report making the accusation that the report is “the western forces’ going to new heights to smear China’s image.” The report quoted one Chinese diplomatic scholar who claimed that Australia has followed in the footsteps of the U.S. in its China policy and actively cooperated with Trump’s statement that China’s development is based on stealing Western technology. This approach has not been good for Australia.

Source:
1. Radio Free Asia, October 31, 2018
https://www.rfa.org/cantonese/news/report-10312018093328.html
2. Australian Strategic Policy Institute, October 30, 2018
https://www.aspi.org.au/report/picking-flowers-making-honey
3. Huanqiu, October 30, 2018
http://hqtime.huanqiu.com/article/a-XDIVXC5A79CF363246A988

Briefings | | |   Geo-Strategic Trend

With Chile on Board, “Belt and Road” Advances into U.S. Backyard

Chilean Foreign Minister Roberto Ampuero said on November 2 that Chile will participate in China’s “One Belt, One Road” initiative, which will deepen the economic and political cooperation between the two countries.

In the statement, Ampuero said that participation in China’s global infrastructure initiative will make Chile more attractive to Chinese investors; he hopes to make his country a “landing point for investments in Latin America.”

China is Chile’s top trading partner and the two countries are deepening ties. Last week, Chile and China signed a trade deal to streamline customs controls and widen access to the Chinese market for Chilean products.

Ever since Trump took office, China has continued to play important roles around the globe. For example, China has been promoting the Regional Comprehensive Economic Partnership, so as to replace the Trans-Pacific Partnership Agreement.

China also challenges the dominance of the U.S. in Latin America. In the coming decade, China will pour a total investment of $250 billion into this region. China is also the largest trading partner of many Latin American countries including Brazil and Argentina.

Source: Central News Agency, November 2, 2018
https://www.cna.com.tw/news/aopl/201811020051.aspx

Briefings | | |   Geo-Strategic Trend

Beijing Announced the List of Foreign Heads of State or Heads of Government Attending the China International Import Expo

According to Xinhua News Agency, the Chinese Foreign Ministry announced on October 29 that the first China International Import Expo will be held in Shanghai from November 5 to 10. At the invitation of Chinese President Xi Jinping, the following heads of state or heads of government will attend the Expo:

Miloš Zeman, President of the Czech Republic,
Miguel Díaz-Canel, President of the Council of State and the Council of Ministers of Cuba,
Danilo Medina, President of the Dominican Republic,
Uhuru Kenyatta, President of Kenya,
Dalia Grybauskaitė, President of Lithuania,
Juan Carlos Varela, President of Panama,
Salvador Sánchez Cerén, President El Salvador,
Alain Berset, President of the Swiss Confederation,
Henry Puna, Prime Minister of Cook Islands,
Andrej Plenković, Prime Minister of Croatia,
Mostafa Kamal Madbouly, Prime Minister of Egypt,
Viktor Orbán, Prime Minister of Hungary,
Mamuka Bakhtadze, Prime Minister of Georgia,
Thongloun Sisoulith, Prime Minister of Laos,
Joseph Muscat, Prime Minister of Malta,
Imran Khan, Prime Minister of Pakistan,
Dmitry Medvedev, Prime Minister of Russia, and
Nguyễn Xuân Phúc, Prime Minister of Vietnam.

Source: Xinhua News Agency, October 29, 2018
http://www.xinhuanet.com/world/2018-10/29/c_129981443.htm

Briefings | | |   Geo-Strategic Trend

SINOPEC and CNPC Did not Order November Iranian Oil

The official website of the China Shipping Services (CNSS), an organization under China’s Ministry of Transportation, recently published an article that stated China’s two largest state-owned oil refiners – China Petrochemical Corporation (SINOPEC) and China National Petroleum Corporation (CNPC) – halted ordering the November Iranian oil. Anonymous sources said the two refiners were concerned about the U.S. sanctions and were uncertain about whether China can get an exemption or not. One of the top officials from these two companies suggested that the risk is “higher than the reduction of the supply level.” Neither of the two companies was willing to confirm the news nor was the National Iranian Oil Company (NIOC). Kunlun Bank, which CNPC controls, has informed its customers that it is no longer accepting RMB payments from Iran. In August, Kunlun Bank had already quietly stopped accepting Iranian Euro payments. Nearly all oil transactions between China and Iran went through Kunlun Bank. However, China Shipping Services’ tracking system shows that six out of the nine Iranian November oil tanker ships still have planned destinations in China. India’s import level from Iran also remains unchanged.

Source: CNSS, October 26, 2018
http://www.cnss.com.cn/html/2018/currentevents_1026/318759.html

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