Skip to content

Geo-Strategic Trend - 185. page

Russian Oil Exported to China at 50 Percent Higher Price

Well-known Chinese news site Sina recently reported that, based on the data Bloomberg obtained from the China General Administration of Customs, the volume of Russian oil exported to China increased by 65 percent in November, reaching a record high monthly volume of 3.31 million tons. According to Bloomberg, the average price of these November exports was at US$90 per barrel. However, given the sharp decline in the oil price on the global market, the current standard for oil prices is below US$60. The Russian State Duma recently passed laws to cut the oil export tax. At a press conference earlier, Russian President Putin suggested that the Russian economy must adjust to the reality of oil prices staying at US$40. According to Chinese Customs records, China’s imports from the largest OPEC oil exporter, Saudi Arabia, were in their second consecutive month of decline, which is the equivalent of a 5.9 percent decline year-over-year. The Russian Ministry of Energy recently mentioned that, during January to September, Russian oil exports to China increased by 45 percent year-over-year. 
Source: Sina, December 24, 2014
http://finance.sina.com.cn/world/20141224/174421156026.shtml
Briefings | | |   Geo-Strategic Trend

Global Times: Qualcomm May be Fined US$1 Billion

Global Times recently reported that the National Reform and Development Commission (NDRC) has been conducting an antitrust investigation against U.S. chip maker Qualcomm, who may be fined US$1 billion for abuse of its monopoly power. NDRC accused Qualcomm of price gouging and misusing its standard-setting power in the wireless communications market. According to Chinese antitrust laws, NDRC can fine the company in the range of 1 to 10 percent of its annual sales amount. As the largest wireless communications chip maker in the world, Qualcomm’s fiscal year 2013 sales income in the Chinese market was US$12.3 billion, which was half of its global sales total. China is in the process of upgrading its nationwide wireless network infrastructure to 4G technology, which requires Qualcomm-patented chips that are widely used in smartphones. Some analysts suggested that the Chinese antitrust move had the intention of influencing the negotiations on licensing the Qualcomm patents. 
Source: Global Times, December 26, 2014
http://china.huanqiu.com/News/mofcom/2014-12/5302952.html
Briefings | | |   Geo-Strategic Trend

Li Keqiang: China Willing to Provide Financial Support to SCO Countries

On the afternoon of December 15, Chinese Premier Li Keqiang attended the 13th meeting of the Summit of the Shanghai Cooperation Organization (SCO) member countries in Astana, the capital of Kazakhstan. 

According to Russian media, Li announced at the meeting that China is willing to provide financial support to SCO countries to help them overcome the economic crisis.  The media also reported that Li further stated that China is willing to take such measures in bilateral cooperation with Kazakhstan and other SCO countries or partners, and that this effort will help these countries to deal successfully with the economic downturn and to modernize production. 
The SCO was founded in Shanghai in 2001. The SCO members are Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Iran, Afghanistan, Mongolia, Pakistan and India have observer status. Dialogue partners include Belarus, Sri Lanka and Turkey. 
Source: China Enterprises Investment Association, December 16, 
2014 http://www.ceia.cn/show.php?contentid=47887

Briefings | | |   Geo-Strategic Trend

Huanqiu: As Everyone Knows, China Does Not Want Russia to Fall”

On December 17, 2014, Huanqiu (the Chinese edition of Global Times) published an editorial titled, “As Everyone Knows, China Does Not Want Russia to Fall.” After an analysis of Russia’s situation and economic difficulties, the article said that Russia is still far away from any real danger of collapse. However, what Russia has to deal with is not a short-lived super storm either. “Sino-Russian relations are generally regarded as one of the key conditions for protecting Russia against strategic risks.” “China does not want Russia to fall; the whole world is clear about (China’s) stand.” According to the Huanqiu editorial, China must be clear about several points when dealing with Russia.

First, the China-Russia strategic partnership is no longer built on ideology but on the national interests of both countries. A Russia that does not show its weakness to the U.S. and the West is important to China in terms of China’s national interests. China and Russia mutually need each other with a back to back strategic relationship.

Second, although China has the ability to provide assistance to Russia in key areas at critical times, China may only do so upon Moscow’s request so as to avoid Russia’s misunderstanding of China’s intentions. China needs to have a high respect for Russia and to maintain Putin’s reputation in Russia. Third, it is only a hypothesis that Russia will be continuously getting closer to China because of its crisis. Many uncertainties exist.

Source: Huanqiu, December 17, 2014
http://opinion.huanqiu.com/editorial/2014-12/5248588.html

Briefings | | |   Geo-Strategic Trend

BBC Chinese: Nicaraguans Protest China Funded Canal Construction Plan

BBC Chinese recently reported that the 16th protest against the Canal Construction Plan based on funds from China took place on December 10, which was International Human Rights Day. Thousands of Nicaraguans representing environmentalists, human rights protectors, women’s rights defenders, and other NGOs walked in the streets for a distance of 3 kilometers. The Canal is set to start construction on December 22. In 2013, the Nicaraguan Congress granted a China-owned company a contract to build and operate the Canal for 100 years. That decision triggered the numerous protests that have occurred since then. The protesters have called Nicaraguan President Daniel Ortega Saavedra a traitor. The primary issues of the Canal construction are the lack of an Environmental and Ecological Assessment Report for the nearby lakes as well as the compensation price for land expropriation. The anti-China atmosphere has continued to spread.
Source:  BBC Chinese, December 11, 2014
http://www.bbc.co.uk/zhongwen/simp/world/2014/12/141211_nicaragua_protest
Briefings | | |   Geo-Strategic Trend

Global Times: Fidel Castro Won the Confucius Peace Prize

Global Times recently reported that former Cuban leader Fidel Castro won the Fifth Confucius Peace Prize, which was announced in Beijing on December 9. A Cuban student in China accepted the Prize on Castro’s behalf. The Prize winner was selected after a three-phase process. The South Korean President as well as the UN Secretary General were also among the finalists. According to one of the founders of the Prize, Castro was honored for his contribution to world peace – he did not settle the hostile relationship between Cuba and the United States by force and war. Castro also made significant contributions to lower the risk of a nuclear war. Out of 12 judges on the final voting panel, nine voted for Castro. Former UN Secretary General Kofi Atta Annan and Russian President Vladimir Putin have also been winners of this Confucius Peace Prize. [Editor’s note: None of the winners of the Prize actually accepted the Prize in person.]
Source: Global Times, December 12, 2014
http://world.huanqiu.com/exclusive/2014-12/5234571.html
Briefings | | |   Geo-Strategic Trend

China is Promoting the BeiDou System in Cambodia

Xinhua recently reported that the launch ceremony of a demo version of China’s BeiDou Navigation Satellite System was held in Cambodia’s capital city of Phnom Penh. BeiDou, a multi-satellite global navigation system is already operational but more components are still under construction. BeiDou is a Chinese rival of the U.S. government-run Global Positioning System (GPS). Those who attended the ceremony from the Chinese side included Li Chuanrong (李传荣), an official from the Chinese Academy of Sciences, and Xiong Wei (熊伟), the deputy head of Cambodian Office of the state giant China Electronic Technology Group (CETC, 中国电子科技集团). The Cambodian side had one official from the Cambodian Ministry Of Industry and Handicrafts and a senior manager from Khmer First Investment Holding Group Co.
According to Xinhua, “the promotion of BeiDou in Cambodia will help push forward the progress of Cambodia in the field of information technology.” The Cambodian government gave high praise to the Chinese government and CETC for their contributions and expressed the wish for further in-depth cooperation in satellite navigation and earth observation (remote sensing) technologies.
Source: Xinhua, December 12, 2014
http://news.xinhuanet.com/world/2014-12/12/c_127298982.htm
Briefings | | |   Geo-Strategic Trend

BBC Chinese: Kenyan Authorities Arrested 77 Chinese Suspects

BBC Chinese recently reported from Nairobi, Kenya that the police arrested 77 Chinese citizens for online criminal activities. The police expressed the belief that this criminal group hacked into bank accounts, mobile banking networks, and ATM equipment and networks. They also accused the group of attempting to break into Kenya’s national communications system. The suspects have admitted wrongdoing and turned in the plan they had to attack the national communications system. The prosecutors have sued the members of the group for illegal residence and illegal use of radio equipment without a permit. The Kenyan government contacted the Chinese Embassy to see if the Ambassador was aware of the group’s activities or not. The Chinese government promised to send investigators to assist in the Kenyan investigation. The Chinese Embassy in Kenya proposed that the Chinese government help find out the identities of these suspects. Based on the local reports, the criminal group was producing bank card chips and ran a “command center.”
Source: BBC Chinese, December 4, 2014
http://www.bbc.co.uk/zhongwen/simp/china/2014/12/141204_kenya_chinese_crime
Briefings | | |   Geo-Strategic Trend