Geo-Strategic Trend - 131. page

Popular Hong Kong newspaper Oriental Daily recently reported via its online news site that, according to Russian anti-drug authorities, China is now Russia’s largest drug supplier. Around 90 percent of Russia’s chemical-based drugs are sourced from China. The primary channel for the Chinese drug dealers to ship drugs to Russia is the postal mail system. The drugs are mailed into Russia as “food.” For example, the Russian Rostov Court announced on July 10 that it is currently hearing a case against some senior Cossack officials illegally working with Chinese drug dealers in Jilin Province, China. According to recent Russian reports, most of the drugs from China are packaged in plant oil bottles or buried in half-baked food like dumplings. The Russian police are currently improving the process of inspecting packages of Chinese food that sent in the mail. Oriental Daily has been Hong Kong’s number one newspaper; it has been in circulation since 1976, with a record readership of over 3,100,000.

Source: Oriental Daily, July 20, 2018
http://hk.on.cc/cn/bkn/cnt/news/20180720/bkncn-20180720090647833-0720_05011_001_cn.html

The ongoing U.S. – China trade war could have dealt a heavy blow to China’s export-oriented enterprises. According to the Russian government-owned news agency Sputnik News, Xu Ningning, the executive director of the government backed China-ASEAN Business Council, advised that China and ASEAN should cooperate in manufacturing.

In fact, the joint production plan was implemented a long time ago. Against the current backdrop, the cooperation between China and Southeast Asian countries will gain new momentum. China’s Guangxi Zhuang Autonomous Region has a Science and Technology Park under construction in its neighboring country of Vietnam. The goods produced there, which can be labeled “Made in Vietnam” according to the Rules of Origin, are not subject to the U.S. tariffs. The question is then whether the U.S. will exert its influence against such cooperation.

Chen Fengying, a researcher at the China Institute of Contemporary International Relations, told Sputnik News that, “Every country focuses on its own national interests. Because of the pressure from the U.S., they are also looking for a new development model, such as the cooperation between Vietnam and China. As to whether the U.S. will obstruct the deal, I think that even if the U.S. has such an idea, it may not be realized. Not every country completely obeys the U.S.”

Chen added, “The changes in the external environment will prompt Asia to strengthen cooperation. On the one hand, we must unite the Asian countries; on the other hand, we cannot ignore cooperation with the outside world. Asia has a good regional cooperation mechanism. Examples are the Regional Comprehensive Economic Partnership (RCEP) and ‘One Belt, One Road.’”

Trade statistics show that the mutual interests between China and ASEAN are growing. In the first five months of this year, the trade volume between China and ASEAN increased by 20 percent, while the overall growth rate of China’s foreign trade during the same period was 16.8 percent. Trade between China and the EU increased by 15.1 percent. At the same time, the trade between China and the U.S. was slightly behind with a growth of 13.1 percent.

Source: Sputnik News, July 13, 2018
http://sputniknews.cn/opinion/201807131025879187/

On July 2, BBC Chinese reported that Hong Kong Cheung Kong (Holdings) recently announced a plan to acquire Australia’s largest natural gas pipeline company, APA. However, this once again triggered considerable debate in Australia, based on the worry about losing control of critical national infrastructure to a foreign power. Hong Kong is currently under Chinese rule with the “One Nation Two Systems” policy. However, the system has no assurance that a Hong Kong company could be prevented from obeying an order from Beijing. The Cheung Kong acquisition attempt is to obtain a 100 percent stake in APA. The deal is valued at around US$9.5 billion. However, there is no signed agreement yet and multiple Australian officials have already stood up to express their concerns on antitrust and national security grounds. Cheung Kong has a large number of investments on a global level, especially in Britain and Canada. It already has control over many infrastructure companies covering most of the Australian states.

Source: BBC Chinese, July 2, 2018
http://www.bbc.com/zhongwen/simp/world-44680774

On July 6, People’s Daily reported on the opening ceremony of the 2018 Visiting of Young Sinologists Training Program, which the Ministry of Culture and Tourism, the Chinese Academy of Social Sciences, the Chinese and Foreign Cultural Exchange Center, and the Beijing Language and Culture University hosted jointly in Beijing. Thirty-eight participants from 34 countries participated in the program. In the first three days, the participants had classes and then were divided into groups to conduct two-weeks of research studies at the Chinese Academy of Social Sciences, Peking University, the Beijing Language and Culture University, the Beijing Second Foreign Languages Institute and at other academic institutions based on their academic interests. After that, they are scheduled to travel to Guizhou Province to study the situation of the Chinese minority culture, the development of the ecological civilization and the development of contemporary science and technology. After the 21-day training program, these young sinologists will continue to stay in touch with their Chinese mentors and maintain communication on academic research and essay writing. The report stated that the Young Sinologist Training Program was launched in 2014. Twelve sessions have been held since then with 360 participants coming from 95 countries around the world. In 2018, for the first time, the Young Sinologist Training Program will have spring, summer, and fall sessions to be held in Chongqing, Guangzhou, Beijing, Shanghai, Hangzhou, and Xi’an. The number of total participants is expected to exceed 200.

Source:
1. People’s Daily, July 6, 2018
http://world.people.com.cn/n1/2018/0706/c1002-30132115.html
2. China Studies, July 5, 2018
http://sinology.chinaculture.org/html/www/news/newsdetails.html?id=183

Duowei News quoted a news article that the BBC had published. On June 28, the Australian Parliament passed new laws aimed at preventing foreign interference in Australia. According to the BBC report, the laws were first passed in the Senate on the 28th. They target espionage, as well as foreign interference in politics and other domestic affairs. The laws specified that industrial espionage for a foreign country will be categorized as a criminal offense. They also require that lobbyists for foreign governments must register their identity. In December 2017, Malcolm Turnbull, Prime Minister of Australia, first announced his plan to introduce a new foreign espionage law while he criticized China for interfering in Australia’s politics. The Duowei article stated that, even though Turnbull denied that the new laws target China, the timing of the laws has intensified the foreign relations between the two. An ABC report suggested that the laws are the explanation for the development of the recent diplomatic conflict between Australia and China.

Sources:

1. Duowei News, June 28, 2018
http://news.dwnews.com/global/news/2018-06-28/60067420.html
2. BBC, June 28, 2018
https://www.bbc.com/news/world-australia-44624270

Xinhua recently reported, based on OECD (The Organization for Economic Co-operation and Development) data that, among OECD member countries, the United States has become the number one destination for asylum applications. The OECD has 35 members, including the United States, Germany, Great Britain, France, Australia and Turkey. In the year 2017, OECD countries received 1.2 million more asylum applications than in 2016. Between 2013 and 2016, Germany was the top destination. However, in 2017, the U.S. surpassed Germany to receive the largest number of applications. Germany is now the second largest, followed by Italy, Turkey, and France. Most of the asylum applicants for EU countries came from Afghanistan, Syria, and Iraq. Most applicants for the U.S. came from El Salvador, Guatemala, and Venezuela. According to the OECD, with massive numbers of refugees pouring into OECD countries, residents in the member countries have started to question the benefits of accepting these immigrants. This has already changed the political landscape in Germany.

Source: Xinhua, June 22, 2018
http://www.xinhuanet.com/world/2018-06/22/c_129898274.htm

Shanghai-based industrial news media SMM (Shanghai Metals Market), which specializes in reporting news regarding non-ferrous metals, recently reported that the Pakistani National Tariff Commission announced an anti-dumping tariff on color-coated steel coils and sheets made in China and South Africa (Announcement ADC51). The Pakistani government made the final judgment call and determined the products in scope did established tangible damage to Pakistani domestic products. The anti-dumping tariff will remain in effective for the next five years. The tax rate for Chinese manufacturers will be in the range of 5.36 percent to 10.88 percent, depending on the specific product tax code. This announcement was made at nearly the same time that the U.S. Trump administration instated its 301 tariffs on China. Also, the Pakistani government approved the initial conclusion of its anti-dumping findings for pencils made in China. A four-month temporary pencil anti-dumping tariff will also apply.

Source: SMM, June 19, 2018
https://news.smm.cn/news/100809623