Geo-Strategic Trend - 13. page

Sputnik News reported that Zimbabwe plans to modernize its state-owned railways with China’s experience and financial support. Before the end of June, both sides will assess the railway transportation needs and reach a consensus on the engineering workload required for reconstruction. China Railway recently signed an MOU with Zimbabwe to conduct a feasibility study on the project within this timeframe.

China’s assistance will bring Zimbabwe increased opportunities to enter the global commodity market, and infrastructure cooperation between China and Zimbabwe will undoubtedly have an impact on the economies of other African countries as well.

Zimbabwe estimates that the total railway reconstruction cost will be around $533 million, and it hopes to receive funding support from China. Zimbabwe has been unable to borrow from multilateral lending institutions due to its over 20 years of debt; the country’s external debt had reached $12.7 billion by September 2023. China recently wrote off Zimbabwe’s interest-free loans but did not disclose the amount, while still promising to help Zimbabwe find a way out of its long-standing debt crisis.

According to experts cited by Sputnik News, modernizing Zimbabwe’s railways will create favorable conditions for exporting Zimbabwe’s abundant lithium, coal, chrome, granite and other resources to world markets by enhancing the carrying capacity and speed of the nearest ports on the Atlantic and Indian Oceans. The planned joint project “is an extremely reasonable and forward-looking move within the framework of China’s ‘railway diplomacy.'”

The project is expected to facilitate China-Zimbabwe mineral resource cooperation and bilateral trade. With improved infrastructure and logistics efficiency, it will attract more Chinese investment in Zimbabwe across various sectors and promote higher-quality Belt and Road cooperation between the two countries.

Source: Sputnik News, May 21, 2024
https://sputniknews.cn/20240521/1059242414.html

China’s sovereign wealth fund, China Investment Corporation (CIC), with assets totaling $1.2399 trillion, is targeting Japan’s small- and medium-sized enterprises. The plan is to allow Japanese companies with high-quality services and undervalued corporate value to thrive in China’s massive consumer market. While information disclosed is limited, this move by Beijing could trigger discussions in Japan and abroad around economic security.

In Shenzhen, the Japanese massage parlor “KA·RA·DAfactory” has attracted many Chinese customers seeking out high-quality Japanese services. Priced at 688 yuan for 60 minutes, about 1.7 times higher than in Japan, the parlor requires around 100 hours of training for its therapists to provide consistent, high-quality services. Japanese quality services, honed in years of deflation, are now praised even in the birthplace of massage – China. In the first year since the parlor’s March 2023 opening, around 60% of customers have become regulars, including many customers from Hong Kong who were attracted by the Japanese brand. The company operating the massage parlor is Factory Japan Group, which was 100% acquired by CIC’s Japan-China investment fund in 2022 in partnership with the Nomura and Daiwa Securities groups. Factory Japan Group plans to expand through franchising in China, targeting 53 outlets by 2026 leveraging CIC’s huge influence.

CIC’s Japan fund primarily targets unlisted medium and small enterprises, or businesses that can increase value through joint Chinese-Japanese operations. In April, CIC invested in a Japanese language education institute catering to students aspiring to study in Japan.

Since 2017, CIC has launched overseas funds in collaboration with top financial institutions from the US, UK, Japan, Italy, France and Germany. By 2022-end, they had invested in over 20 companies in advanced manufacturing, healthcare, financial services and consumer sectors.

CIC views Japan’s unlisted medium and small enterprises as highly valuable acquisitions. However, Chinese investments could pose economic security risks for Japan. M&A deals with China as the buyer peaked around 2016 at around 20 annually.

As China enhances sanctions against advanced manufacturing like semiconductors, and as its market matures demanding quality goods and services, Japanese service and manufacturing sectors may become prime acquisition targets.

While CIC has an international advisory board displaying transparency, information on specific investments is limited. Improved transparency and accountability are crucial for CIC’s global acceptance as a trusted investor.

Source: Nikkei, May 15, 2024
https://zh.cn.nikkei.com/china/ccompany/55562-2024-05-16-05-00-14.html

Primary Taiwanese news agency Central News Agency (CNA) recently reported that 35 cross-party members of the Japanese-Taiwanese Parliamentarian Symposium will visit Taiwan to attend the inauguration ceremony for Taiwanese President-elect Lai Ching-te on May 20th. This will be the largest Japanese delegation in history.

Japanese Representative Kishi Nobu Chiyo, the nephew of former Japanese Prime Minister Shinzo Abe, will be among the visiting Japanese delegates. Akie Abe, the widow of Shinzo Abe, will also make a special trip to Taiwan to attend the inauguration ceremony.

CNA reported that president-elect Lai Ching-te has a profound friendship with the Abe family. Immediately after Shinzo Abe’s assassination, then Vice President Lai Ching-te went to Japan to express his condolences to Abe’s family members and friends. At the time, Lai Ching-te was at the highest-level Taiwanese government official to visit Japan since 1972.

When China banned imports of Taiwanese pineapples, Shinzo Abe made a video of himself eating pineapples, calling on the Japanese people to purchase more of the fruit from Taiwan. The fact Japan is now sending its largest delegation in history to attend the Taiwanese inauguration symbolizes the continued warming of Taiwan-Japan relations. After Lai Ching-te takes office, he is expected to continue supporting Taiwan-Japan friendship, with the hope that the two countries can work together to maintain peace and stability in the Indo-Pacific region.

Source: CNA, May 14, 2024
https://www.cna.com.tw/news/aipl/202405140249.aspx

A Radio France International article discussed the great geopolitical game unfolding in Central Asia, not between Britain and Russia as in the 19th century, but among the emerging nations of Central Asia and their powerful neighbors – Russia and China.

The French TV channel interviewed historian Emmanuel Lincot to understand this political and economic struggle. Lincot explains that while China had less influence than Russia and Britain in the 19th century, it sought strategic depth by conquering Xinjiang/East Turkestan.

Lincot argues that Beijing has been more successful than Moscow and the West in opening up Central Asia. Chinese companies have built roads and pipelines across the region under China’s Belt and Road Initiative since 2013. There are local divisions in the region, however, with some groups opposing China’s growing clout.

China has bolstered its influence through the Shanghai Cooperation Organization, using it to extradite Uyghurs to China. It is also considering construction of small military bases in Tajikistan aiming to combat drug traffickers and Uyghur militants. For Beijing, economic development in Central Asia goes hand in hand with national security.

Lincot notes that China has failed to win trust among the Muslim populations who increasingly resent the new Chinese order. Protests have been occurring in anti-regime states and support is growing for Turkic Muslim groups like Uyghurs.

Russia will need to contend with China’s new assertiveness in Central Asia. Beijing held a China-Central Asia summit in May 2023, signaling China’s intention to draw former Soviet states away from Moscow and into Beijing’s orbit. The US, EU and Turkey are also aiming to boost their influence in this resource-rich region.

Source: Radio France International, May 14, 2024
https://rfi.my/AbO5

An investigation by Radio Free Europe across nine countries revealed that Eastern European nations have purchased millions of Chinese-manufactured surveillance cameras over the past five years, despite security flaws, lax data management by the manufacturers, and manufacturer ties to the Chinese government.

The report found widespread use across EU and NATO member states or aspiring member states of cameras made by the partially state-owned companies Hikvision and Dahua. Cash-strapped European governments are increasingly opting for products from such low-cost, state-subsidized Chinese firms.

While most countries lack national databases of surveillance cameras, available data and RFE’s reporting showed that Hikvision and Dahua dominate the security camera markets in Hungary, Serbia, Romania, Moldova, Ukraine, Bosnia and Herzegovina, Kosovo, Bulgaria, and Georgia. Experts warn that these companies’ well-documented vulnerabilities make the cameras susceptible to hacking and foreign adversaries, and yet the cameras are in use at sensitive sites like Romanian military bases and Hungary’s counter-terror headquarters.

Such cameras are banned from use in the government by the U.S., the U.K., and Australia. As of now, Europe has not yet implemented similar restrictions. However, with a string of Chinese espionage scandals erupting during President Xi’s recent Europe tour and the EU cracking down on Chinese trade practices, the European foothold of these security camera manufacturing firms could become another flashpoint.

Use of such security devices in countries like Hungary and Serbia is likely to grow as those countries’ relationships with Beijing deepen, heightening concerns over privacy and national security risks from the Chinese-made technology.

Source: Voice of America, May 12, 2024
https://www.voachinese.com/a/china-surveillance-cameras-central-eastern-europe/7605597.html

Well-known Chinese news site NetEase (NASDAQ: NTES) reported that, according to calculations based on official data from the German Federal Statistics Office, the United States surpassed China to become Germany’s largest trading partner during the first quarter of this year. Data show that from January to March, the trade volume between Germany and the United States – exports and imports combined – reached 63 billion euros. Meanwhile, the trade volume between Germany and China during the same period was slightly less than 60 billion euros.

In the first quarter, Germany’s imports from China fell by nearly 12 percent year-on-year, while its exports to China fell by just over one percent. Currently, the United States accounts for about 10 percent of German merchandise exports. China’s share  of merchandise exports has dropped to less than six percent.

Vincent Stamer, an economist at Commerzbank, explained that “German exports to the United States are rising mainly due to the strong U.S. economy.” Juergen Matthes, economist at the German Institute for Economic Research (IW) said, “China’s economy performed worse than many expected, while the U.S. economy beat expectations.”

In 2023, China maintained its status as Germany’s largest trading partner for the eighth consecutive year, with total China-German trade reaching 253 billion euros. Meanwhile, US-German trade totaled more than 252 billion euros in 2023.

Source: NetEase, May 9, 2024
https://www.163.com/dy/article/J1P0UH7A05566Z8K.html