Geo-Strategic Trend - 131. page

In Beijing on Wednesday, March 20, visiting Philippine Foreign Minister Teodoro Locsin Jr. had a meeting with Chinese Foreign Minister Wang Yi. China’s Ministry of Foreign Affairs website then published an article that quoted Locsin’s words stated when he was at that meeting. Locsin said that not a single country like China has brought hope to the world and that China’s unique institutional advantages and one-party rule have enabled China to bring about development achievements that other countries have not matched. The leadership of the Chinese Communist Party has played an irreplaceable role. Historically, Western countries have oppressed developing countries through colonialism and imperialism. China’s “One Belt, One Road” initiative, while realizing its own development, has brought about the mutual prosperity of other countries.

After taking office in 2016, Philippine President Rodrigo Duterte has consistently criticized Western countries, especially the United States, for interfering with his bloody anti-drug campaign. The Philippine government accuses Western countries of attaching conditions when providing aid, such as demanding respect for human rights, while China does not attach any human rights conditions.

Source:
Website of China’s Ministry of Foreign Affairs, March 20, 2019
https://www.fmprc.gov.cn/web/wjbzhd/t1646923.shtml

Radio France Internationale reported that, in recent years, many Chinese people have moved overseas.  Australia is one of the more popular choices. According to the data, the number of “significant investment immigrants” (SIV) visas who invested 5 million Australian dollars (US$ 3.54 million) in Australia has been growing at an alarming rate. Since its opening in 2014, it has grown from 879 in 2015 to 2,022 in 2018; they were mainly Chinese.

According to Ken Jacobs, a real estate agent based in Sydney, in 2015, there were a total of 70 million Australian dollars (US$50 million) in real estate transactions and 61 million Australian dollars (US$43 million) in 2016. He said, “Chinese buyers are very decisive when they look for houses.”

Among the buyers of overseas real estate, about 22 percent of the overseas buyers in the Australian real estate market are from China. Although sales in 2018 have declined, Chinese buyers are still investing in Australia, which is one of their top choices in real estate.

In addition, many Chinese are willing to spend money to travel abroad, especially to the Andermatt region of Switzerland. According to statistics, among the tourists who have spent the night in the region, the number of Chinese tourists ranked the second next to the local domestic tourists. The CEO of the tourism development company in the area said, “We clearly feel that the interests of Chinese tourists are increasing.”

Source: Radio Free Internationale, March 20, 2019
http://rfi.my/3pfG.T

In a discussion on the EU’s China strategy at the EU foreign ministers meeting in Brussels, the German Social Democratic Party’s Foreign Minister, Heiko Maas, said that, in order to defend its own interests and values, it is important for the EU to develop relations with China in a united fashion, instead of each country acting in its own way.

In view of China’s efforts to participate in important infrastructure projects in Europe, Maas warned that one should not be too naive. He said, of course, people should see that “China is also pursuing its strategic interests through economic policies.”

Maas’s remarks are a warning regarding China’s telecom giant Huawei’s participation in 5G construction. He may also be critical of Italy. Following some smaller EU economies, Rome announced that it will reach a framework agreement with China on the Belt and Road Initiative. Through this project, China hopes to open up trade routes to Europe and Africa. Rome, on the other hand, hopes to promote China’s investment in ports such as Genoa and Taranto.  Several EU countries criticized Rome’s move.

Source: Radio France International, March 18, 2019
http://rfi.my/3pHG.T

Chinese investments in EU countries are experiencing a sharp decline for the second year in a row. The combined value of completed Chinese FDI transactions in the EU fell to EUR 17.3 billion in 2018, down 40 percent from 2017 levels (EUR 29.1 billion). This represents the lowest investment level since 2014.

According to a report that the German think tank The Mercator Institute for China Studies (MERICS) and the U.S. consulting firm Rhodium Group jointly published on March 6, after the peak of EUR 37.2 billion in 2016, Chinese investments in the EU dropped to EUR 29.1 billion in 2017 and dropped further down to EUR 17.3 billion in 2018.

“The lion’s share of Chinese investment in the EU’s 28 member countries continued to go to the three biggest economies in Europe—the UK (EUR 4.2 billion), Germany (EUR 2.1 billion) and France (EUR 1.6 billion)—which received 45 percent of China’s investments in Europe.”

Despite the decline in Europe, Chinese investment in Germany has risen. Compared with 2017, China’s investment in Germany in 2018 increased by EUR 400 million. This includes China Tiancheng Pharmacy Ltd.’s acquisition of German competitor Biotest, and Ningbo Jifeng Auto Parts’ purchase of German auto parts supplier Grammer.

An important reason for the overall decline in Chinese overseas M&A is that China has continued strict capital controls and tightened liquidity, making it difficult for companies to transfer funds abroad. That European countries have increasingly strict controls over acquisitions has also increased the difficulty for Chinese companies to complete acquisitions. European countries are expected to exert stricter controls over acquisitions.

However, in the near term, the recent expansion of the US investment screening regime and the continued US–China tensions, may also boost Chinese investment in Europe.

Source: Radio France International, March 6, 2019
http://rfi.my/3kdC.T