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Geo-Strategic Trend - 162. page

China Confirmed the Arrest of Lee Ming-cheh, a Taiwan Citizen

On May 26, An Fengshan, a spokesperson for the State Taiwan Affairs Office in mainland China confirmed that China has arrested Lee Ming-cheh, a Taiwan citizen. Lee is an employee of a Non-Government Organization and a former volunteer for the Democratic Progressive Party in Taiwan.

An Fengshan stated that Lee was involved in the crime of “subversion of state power” and thus the police from Hunan Province arrested him. “State Security took forcible measures against Lee Ming-cheh accordingly to the law. After interrogation, Lee and others admitted that they had conducted activities to subvert our state security.”

The Mainland Affairs Council in Taiwan responded that the mainland’s statement was obscure and thus did not seem convincing to the Taiwan people or to the international community.

Source: China Times, May 27, 2017
http://www.chinatimes.com/cn/newspapers/20170527000776-260301

People’s Daily: Russia Is an Important Strategic Partner in Building “The Belt and Road” Together

After talks with Russian Foreign Minister Sergei Lavrov, China’s Foreign Minister Wang Yi told reporters  that China regards Russia as an important strategic partner in building “The Silk Road Economic Belt and the 21st-century Maritime Silk Road” (also known as “The Belt and Road Initiative”) together.

Wang said that President Vladimir Putin recently visited China to attend “The Belt and Road Forum for International Cooperation” and made an important contribution to the success of the Forum. China regards Russia as an important strategic partner to build the “Belt and Road” and believes that Russia will play a unique and irreplaceable role in the process.

Source: People’s Daily, May 27, 2017
http://world.people.com.cn/n1/2017/0527/c1002-29305091.html

People’s Daily: The Japanese Factor in Cross-Strait Relations Will Exist for a Long Time

Wang Jian, a scholar at the Institute of Modern History at the Chinese Academy of Social Sciences, published an article in the Japanese Journal (2017, No. 2 issue) titled, “The Evolution of Taiwan-Japan Relations in the 21st Century,” with the subtitle, “The Structural Contradictions between Taiwan and Japan and the Factors Impacting Future Trends.” The article pointed out that since the start of the 21st century, the relationship between Taiwan and Japan has undergone a series of changes. In Chen Shui-bian’s administration, there were frequent interactions in the political and security areas. The tendency toward “jurisprudential independence” made the Taiwan crisis even more prominent. After Ma Ying-jeou took office, he started the “flexible diplomacy” and initiated the “special partnership between Taiwan and Japan Year” program. The relations between Taiwan and Japan showed an upward trend which continued after the East Japan earthquake. Today difficult-to-reconcile structural contradictions between Japan and Taiwan still remain, including fishing rights in the Douglas Reef (Okino Tori Shima), the export ban on food from five Fukushima counties to Taiwan, and the Taiwan-Japan EPA negotiations. After Tsai Ing-wen came to power, the contradictions started to “intensify.” Taiwan-Japan relations gradually come down to the reality of interests from the too high “expectations” from the past. The factors affecting the relationship such as the Sino-U.S., Sino-Japanese, Japan-U.S. and the cross-strait relations are also being adjusted accordingly, but they will have more uncertainty. From the perspective of the Taiwan DPP authorities’ choice of foreign policy, the future relationship between Taiwan and Japan will be closer. Their alliance for common interests to compete against China’s mainland is still the biggest variable.

Source: People’s Daily, May 28, 2017
http://world.people.com.cn/n1/2017/0528/c1002-29305819.html

Xinhua: China-Russia Oil Pipeline Reached Oil Delivery of 100 Million Tons

Xinhua recently reported that, as of May 19, the volume of oil China acquired from Russia via the China-Russia pipeline had reached 100 million tons. The Pipeline started running on January 1, 2011. The China-Russia pipeline originated at Russia’s Far East Pipeline Skovorodino Distribution Station and entered China at the Xing’an First Station in Muohe, Heilongjiang Province. The Pipeline ends in Daqing, Heilongjiang Province, with a total length of 1,000 kilometers. This pipeline completely changed the history of importing Russian oil via railway. Chinese Customs is responsible for monitoring and managing the acceptance of the imported oil, checking the personnel involved in the maintenance work, as well as coordinating communications with the importing companies. The China-Russia pipeline has so far generated an import trade volume worth of US$62.5 billion. It has also garnered import tariffs of RMB 65.7 billion (around US$9.54 billion).

Source: Xinhua, May 20, 2017
http://news.xinhuanet.com/fortune/2017-05/20/c_1121006862.htm

China News: For Three Years, China Has Had the Largest Number of Investment Projects in Germany

China News recently announced that, according to the latest report that Germany Trade and Invest (GTAI) released, in 2016, China had 281 investment projects in Germany. This number made China the country with the largest number of investment projects in Germany. China has held that title for three years in a row. The 2016 projects were expected to create 3,900 jobs in Germany, which was the highest number of jobs China has created in Germany. Chinese investments mainly concentrate in the field of business services and financial services, which took 27 percent of the projects. Machinery and equipment manufacturing held 11 percent. Electronics and the semiconductor industry held 10 percent, and the automobile industry also took 10 percent. Most of the Chinese investments were spent on sales and market support, which consumed 44 percent of the investments. According to the GTAI report, in 2016, a total of 1,944 foreign investment projects landed in Germany. The statistics do not include mergers. In 2016, Chinese investors were followed by investors from the United States (242 projects), Switzerland (194 projects), Great Britain (125 projects) and the Netherlands (105 projects).

Source: China News, May 19, 2017
http://www.chinanews.com/cj/2017/05-19/8228155.shtml

LTN: Rodrigo Duterte Said China Threatened War over Oil Drilling Redline

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, not long ago, Philippine President Rodrigo Duterte signed an agreement with China (for their countries) jointly to develop natural resources in the South China Sea. President Duterte revealed to the media that Chinese President Xi Jinping once warned him that China will take the risk of (going to) war if the Philippines decides to use The Hague Permanent Court of Arbitration (PCA) ruling to drill for oil in the South China Sea. He described how, when he mentioned that the Philippines intended to drill in the South China Sea, Xi responded, “We are friends, and I don’t want to argue with you. We should maintain a good relationship. However, if you are determined to touch this topic then, no matter what, we’ll take the military approach.

Source: LTN, May 19, 2017
http://news.ltn.com.tw/news/world/breakingnews/2073086

China News: Hainan Airlines Group Became the Largest Shareholder of Deutsche Bank

China News recently reported that China’s Hainan Airlines Group increased its investment in Deutsche Bank to ten percent, which made the Airlines the largest shareholder of the largest bank in Germany. The earlier largest shareholder was Blackrock (United States), which held 5.88 percent. The additional investment totaled 3.4 billion euro (US$3.71 billion). The Airlines Group has disclosed the information to the U.S. Securities and Exchange Commission (SEC). Deutsche Bank is listed on the German Stock Exchange and the New York Stock Exchange. It has around 100,000 employees. The Bank had suffered financial losses in 2015 and 2016. The Bank’s spokesperson Christian Streckert refused to respond to the question of whether the bank welcomed the fact that a Chinese company had become the largest shareholder. According to Hainan Airlines Group, the Group has become an investor in a large variety of industries and market sectors, with total assets valued over RMB 1 trillion (around US$144 billion). The Group’s 2016 total income was over RMB 600 billion (around US$86 billion).

Source: China News, May 3, 2017
http://www.chinanews.com/cj/2017/05-03/8214937.shtml

China’s Spokesperson on North Korean Ships Unloading Coal in China’s Ports

While the United Nations has passed a resolution to restrict North Korea’s coal exports, there have been reports that China allowed some North Korean ships to dock or to unload their coal in China’s ports. China’s spokesperson gave an explanation for two incidents.

Geng Shuang, spokesperson of the Ministry of Foreign Affairs, on April 26, 2017:

Question: “According to what we know, six ships carrying coal from North Korea unloaded the coal in Tangshan port last week. This seems to contradict the Chinese government’s claim that China has not imported any North Korean coal since February 18. Could you please provide more information and explanation?”

Answer: “Due to the fact that some ships that carried North Korean coal were severely short of supplies, out of humanitarian consideration, China allowed them to unload the cargo. However that was not to allow its importation. Unloading and importing are two different things.”

Huang Songping, spokesperson for China’s General Administration of Customs, on April 13, 2017:

Lianhe Zaobao news reported that it asked about 10 North Korean ships that were allowed to dock at China’s port, which made observers wonder if (it meant that) China has not enforced the UN’s embargo.

Huang said that China’s Customs did not let that North Korean coal go through the import process. “Since China’s Customs did not allow the import, how to deal with the coal involved in shipping is something that is up to companies themselves to handle.”

Sources:
1. Sina, April 26, 2017
http://news.sina.com.cn/o/2017-04-26/doc-ifyepsra5643741.shtml
2. Lianhe Zaobao, April 14, 2017
http://www.zaobao.com.sg/znews/greater-china/story20170414-748310