Geo-Strategic Trend - 154. page

Well-known Chinese news site Sina recently reported that, after 18 months of internal debates, the 28 member countries of the European Union finally reached an agreement on the anti-dumping issue against China. The newly established rules will treat all WTO members equally. However, for those countries that significantly interfere with the free market, the EU will take special actions. For many years, China was not considered a “free market economy.” In the meantime, after 15 years being a WTO member, China expressed its belief that it should not be treated that way. Now the new rules define the concept of “dumping” as exporting goods at a price lower than its domestic price. EU investigators will determine the degree of dumping based on this new standard and recommend punishment. Critics expressed their concerns about the new EU rules, which have shifted the burden of proof from China to EU companies. On September 13, the EU also established its new plans for screening foreign investments.

Source: Sina, October 4, 2017
http://finance.sina.com.cn/stock/usstock/c/2017-10-04/doc-ifymkwwk8271349.shtml

BBC Chinese recently reported that, based on a few studies and on academic research, it seems the hometowns of many African leaders received more Chinese aid than other places. For example, the last time that then Chinese Foreign Minister Yang Jiechi visited Sierra Leone, he visited Yoni, a small village deeply hidden in the jungle, with a grand school-building plan. Why? It turns out Yoni is the hometown of President Koroma of Sierra Leone. Studies showed that, among 2000 Chinese aid projects in 50 African countries, presidential hometowns received the largest portion of the money. Even the hometowns of the spouses of these leaders received more aid. It was very hard to find proof of corruption in these projects and China insisted on not attaching any “political conditions” to aid. However, the studies found China’s aid usually had more conditions than the West.

Source: BBC Chinese, October 6, 2017
http://www.bbc.com/zhongwen/simp/press-review-41527260

Well-known Chinese news site Sohu recently reported that, based on data that the World Trade Organization (WTO) released on September 19, South Korea’s export volume between January and July of this year enjoyed a year-over-year growth rate of 16.3 percent, reaching US$328 billion. This rate is the highest among the world’s top 10 largest export countries, and happens to be double China’s number. Ironically, the high growth was achieved during a period when China has been heavily boycotting South Korean products, mainly due to China’s unhappiness of the Deployment of the U.S. THAAD missile defense system. In the meantime, China’s export growth rate (8.3 percent) was below the average of the 70 primary export countries in the world. Experts expressed the belief that South Korea’s strong export recovery was based on the global economic recovery as well as the unit price increases of Korean products. The author of the article suggested that foreign investments play an important role in the Chinese economy. Boycotting foreign products may impact China’s own position in the supply chain.

Source: Sohu, September 23, 2017
http://www.sohu.com/a/194022552_651779

Well-known Chinese news site Sina recently reported that, over five consecutive quarters, India’s 5.7 percent economic growth rate has reached a new low. The growth rate has been declining steadily and is now at its lowest since early 2014. The Indian SENSEX index has been in freefall since the beginning of September. International investors were not able to identify any positive spots and have decided to flee the stock market. In August and September alone, the Indian stock market lost around US$2.61 billion in foreign investments, which was roughly 40 percent of the total foreign investments in stock – based on statistics calculated at the beginning of the year. In the meantime, the growth rate of foreign investments in Indian bonds is nearly at zero. Economists expressed the belief that India’s deficit is expected to increase and international ratings organizations have started criticizing India’s upcoming stimulus plan before it even begins. Apparently, India’s October is not going to look good for foreign investors.

Source: Sina, October 1, 2017
http://finance.sina.com/gb/economy/sinacn/20171001/04071657513.html

South Korea’s largest newspaper Chosun recently reported in its Chinese Edition that the North Korean government has banned residents who live near the nuclear test site from entering Pyongyang – after its sixth nuclear test. Those residents who had scheduled appointments with Pyongyang hospitals were told not to come visit. Experts expressed the belief that the Punggye-ri Nuclear Test Site suffered a certain level of collapse after the last nuclear test and local residents could have been exposed to radioactive contamination. That was the biggest potential reason for the North Korean authorities to establish the ban. In the meantime, North Korea has been mobilizing its citizens in nationwide war preparation exercises. The North Korean military was given permission to shoot if they encounter a group of soldiers where most “wear glasses and are taller than average,” even if the group is in North Korean military uniforms.

Source: Chosun, September 22, 2017
http://cnnews.chosun.com/client/news/viw.asp?cate=C01&mcate=M1001&nNewsNumb=20170948466&nidx=48467

People’s Daily recently published a commentary summarizing the roles that China and the United States have been playing in the North Korean nuclear crisis. The author started with a complaint about the completion of the deployment of THAAD in South Korea. China has made solemn protests to South Korea about THAAD. The commentary went on to reason that China will not protect North Korea because of China’s consistent peninsula denuclearization position. On the other hand, the United States is only using the crisis to expand its strategic reach. The commentator expressed the belief that sanctions are only half of the key to the problem. The other half is peace talks rather than any military deployment. While China has been trying its best to maintain the stability of the region, the U.S. is really taking advantage of the situation to serve the interest of U.S. arms vendors and dealers, as well as to strengthen its “leadership power” in the region.

Source: People’s Daily, September 8, 2017
http://world.people.com.cn/n1/2017/0908/c1002-29523070.html