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Geo-Strategic Trend - 149. page

Article with Chinese Premier Li Keqiang’s Byline Published in Japan

Before his visit to Japan, Chinese Premier Li Keqiang published an article with his byline in a Japanese mainstream media. The article was titled, “Let the Sino-Japanese Peace, Friendship and Cooperation Restart.” The article started with mentioning the short distance between China and Japan. Li said he regretted that it took a long time to push the development of a better relationship. As the second and the third largest economies in the world, it will truly benefit Asia and even the world if the two nations have a healthy relationship. This year marks the 40th anniversary of the Sino-Japanese Peace and Friendship Treaty. Given the global challenges and the regional situation changes, cooperation among China, Japan and Korea will benefit the regional integration process of establishing the East Asian Economic Community. China is committed to peace and openness, which are required to ensure sustained economic growth. The economic complementarity between China and Japan is very strong. Li expected that his visit would witness the signing of a series of mutual economic cooperation agreements, as well as a local currency swap agreement. China will announce the grant of Renminbi Qualified Foreign Institutional Investor (RQFII) status to Japanese investors. Li also called for exchanges in culture, tourism and youth activities.

Source: Official Website of Chinese Central Government, May 8, 2018
http://www.gov.cn/xinwen/2018-05/08/content_5289035.htm

CEFC China Energy Company Failed To Make Its ROSNEFT Stock Purchase

According Russian news agency Sputnik, Glencore, an Anglo–Swiss multinational commodity trading and mining company, announced that it would stop selling the ROSNEFT shares that Glencore and the Qatar sovereign fund QIA owned jointly to CEFC China Energy Company. ROSNEFT is Russia’s national oil company. The cancelled US$9.1 billion deal would have allowed CEFC China Energy to acquire 14.16 percent of ROSNEFT. The Chinese financial news organization Caixin confirmed the news and also reported that CEFC China Energy currently faces the deep trouble of a debt crisis. Its phase-one payment on the ROSNEFT deal was not in place. CEFC China Energy’s US$400 million deposit will not be refunded.

Sources:
1. Sputnik Chinese, May 5, 2018
http://sputniknews.cn/politics/201805051025315260/

2. Caixin, May 5, 2018
http://companies.caixin.com/2018-05-05/101244298.html

Duowei News: Beijing’s Suppression of Taiwan Is Inevitable

Duowei News published an article that stated that Beijing’s suppression of Taiwan is inevitable and that the Tsai Ing-wen administration’s incompetence in handling its domestic affairs will cause it to get into more trouble. The article was referring to the Dominican Republic’s May 1 cutting its ties with Taiwan and its establishment of diplomatic relations with Beijing. This is the third country that has discontinued its foreign relations with Taiwan since Tsai took office. The article stated that it is good news that the number of countries that recognize Taiwan is down from 20 to 19. It claimed that, for Beijing, the two sides of the Strait are still in a state of civil war. The competition between the two sides in the international arena has always been a dispute of who represents China and it is a reasonable and inevitable choice for China to suppress Taiwan. The article further attacked the Tsai administration for its inability to deal with domestic disagreements and the lack of unity among the parties. It reminded Tsai that her administration should focus more on domestic affairs and unity rather than on playing politics.

Source: Duowei, May 1, 2018
http://news.dwnews.com/taiwan/news/2018-05-01/60055249.html

DW Chinese: German Government Will Tighten the Rules on Acquisitions from China

Deutsche Welle Chinese recently reported that German Federal Minister of Economic Affairs and Energy, Peter Altmaier, said not long ago in Berlin that, since more and more Chinese investors have shown an interest in acquiring German companies, the government has been considering tightening up its foreign investment policies. Traditionally, the government would only interfere with a foreign acquisition when the deal was above 25 percent of the total market value of the company. The German government is now considering lowering the veto threshold to 10 percent. In the past, the German government typically stepped in when public security was at risk. Now, more and more consideration is given to the strategic position of the company, as well as whether the buyer is from a European Union member country or not. It is notable that Minister Altmaier picked up on this topic right before German Chancellor Angela Merkel’s visit to the United States.

Source: Deutsche Welle Chinese, April 27, 2018
https://bit.ly/2FpROlk

Samsung Intends to Expand in Vietnam

Well-known Chinese news site NetEase recently reported that Samsung’s CEO Koh Dong-jin told Vietnamese Prime Minister Nguyen Xuan Phuc of his intent to expand the scale of Samsung’s manufacturing in Vietnam. Samsung is Vietnam’s largest foreign investor. In 2017, Samsung Vietnam achieved US$54 billion in exports for Vietnam. This amounted to one quarter of the nation’s total export income. According to the Vietnamese government, Samsung has established eight manufacturing factories and one research and development (R&D) center in Vietnam. The total investment from Samsung has reached US$17.3 billion. Vietnam is now Samsung’s largest smartphone manufacturing base. Prime Minister Nguyen also assured Koh with his promise of providing Samsung with the best investment environment for growth. Samsung currently has plans to hire more local Vietnamese workers in Northern Vietnam. Not long ago, Samsung completely closed down its Shenzhen branch in China.

Source: NetEase, April 21, 2018
http://tech.163.com/18/0421/08/DFTD0S4H00097U7S.html

Chinese Military Airplane Trespasses into Korean Air Defense Identification Zone

On April 28, the second day after the historical meeting between South Korean President Moon Jae-in and North Korean leader Kim Jong-un and their signing of the Panmunjom Declaration, Chinese military aircraft trespassed into the Korea Air Defense Identification Zone (KADIZ) without notifying Korea ahead of time. According to a YouTube posting from the Korean Television Station Arirang TV, the plane entered the zone at 10:44 am Korean Time. It flew close to Pohang Southeast of Korea and then headed towards Ulleungdo in Northeast Japan. The plane flew out of the zone at 2:33 pm. A Korean fighter jet was forced to monitor the movements. Beijing later claimed it was conducting normal training exercises within legal international air space. Epoch Times reported that this is the third time that Chinese military aircraft trespassed KADIZ in 2018. The last two times were on January 29 and February 27. The one on February 27, in particular, drew 10 Korean fighter jets to monitor the airspace and a complaint that the Defense Ministry of Korea sent to the Chinese Embassy in Korea. The article also mentioned that other than KADIZ, in recent months, Chinese military aircraft did the same trespassing in the southern part of Japan and in the airspace near Taiwan.

Sources:
1. Arirang TV, April 28, 2018
https:// www.youtube.com/watch?v=1h5S4i_4PV4
2. Epoch Times, April 28, 2018
http://www.epochtimes.com/gb/18/4/28/n10344780.htm

Huanqiu Opinion Article: Xi-Modi Talks Set a New Milestone for Rational Relations in Asia

Huanqiu published an opinion article in which it stated, “A brand-new positive situation is forming around China. Some strategic risks are tending to ease. The possibility of serious conflict between China and individual surrounding forces due to specific disputes has dropped to a historical low. … The stability of China’s peripheral relations will reduce the likelihood that external forces around China will deliberately make a choice and intervene, thereby reducing the risk of conflict between China and the United States in matters concerning China’s major interests.” The article was referring to the recent softening relationship between China and India, Japan, the Korean Peninsula, the Philippines and Vietnam. It stated that Beijing made the effort to adjust its policy with its neighboring countries which has enabled those countries to realize that China’s rise is an opportunity for them rather than a threat. When friction arises, China and the neighboring countries need to appreciate each other and no one can force Asian countries to confront each other. The future of Asian peace and prosperity lies in the hands of Asians.

Source: Huanqiu, April 28, 2018
http://opinion.huanqiu.com/editorial/2018-04/11941089.html

Kim Jong-un Sees off Train Carrying Chinese Victims

A Chinese tourist group got into a deadly accident on April 22 when their bus fell off a bridge in North Korea. Thirty-two people died and two were injured. On the morning of April 26, North Korea sent a special train to carry the bodies of the dead and to take the injured Chinese back to China. Kim Jong-un went to the train station to see the train off. He stepped on the train briefly to greet the wounded people.

Sources:
{1} China News, April 26, 2018
http://www.chinanews.com/gn/2018/04-26/8500315.shtml
{2} The China Press, April 23, 2018
http://ny.uschinapress.com/spotlight/2018/04-23/143317.html