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Geo-Strategic Trend - 22. page

People’s Daily: China’s Largest Corporation of Foreign Culture Performing Arts is Making Connections Abroad

People’s Daily Online interviewed Li Jinsheng, the Communist Party Secretary and Chairman of China Arts and Entertainment Group. Below are some excerpts from the interview:

“Established in 2004, China Arts and Entertainment Group originated from the China Foreign Performance Company and the China Foreign Art Exhibition Center, founded in 1957 and 1950, respectively. Over the past 70 years, especially in the nearly 20 years since its formation, China Arts and Entertainment Group has been dedicated to engaging in cultural exchanges, telling China’s stories, and spreading the country’s voice abroad.”

“As the largest and only state-owned enterprise specializing in foreign cultural exchanges, the group aligns its work with the country’s diplomatic priorities. One significant aspect is coordinating cultural activities in conjunction with major national events. Incomplete statistics show that, since 2013, the group has organized over 70 cultural performances and exhibitions in support for China’s major diplomatic activities.”

“In October 2016, under the guidance of the former Ministry of Culture, the Silk Road International Theatre Alliance was formed. As of today, the alliance has 155 member units from 45 countries and regions, including 83 overseas members and 72 domestic members. Since its establishment, the alliance has played an active role in information exchange, personnel exchanges, and collaboration in performance production among theatre members. It has fostered long-term and deepened cooperation in the field of performing arts with countries participating in the Belt and Road Initiative.”

Source: People’s Daily, November 7, 2023
http://www.people.com.cn/n1/2023/1107/c32306-40112644.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

Chinese Student Barred From Canada Over Espionage Concerns

The Federal Court of Canada has barred Chinese student Yuekang Li from entering the country, citing “potential espionage risk.” Li, born in 1998, obtained a bachelor’s degree in mechanical engineering from Beihang University, a Chinese university with strong ties to Chinese military, in 2020. In 2022 he completed a master’s degree in mechanical engineering at the U.S.A’s North Carolina University (via remote study due to COVID restrictions). After graduation, the U.S. rejected Li’s visa application. Li was subsequently admitted to a Ph.D. program at the University of Waterloo in Canada in April 2022.

Li’s application to the Canadian government for a student visa was rejected by Canadian immigration authorities after a lengthy background check, citing the potential for future espionage activities harmful to Canadian interests. Li applied for a judicial review from the Federal Court of Canada. The court supported the immigration authorities’ decision, emphasizing non-traditional espionage strategies of the Chinese government that make use of Chinese international students. The judge highlighted Li’s graduation from a university associated with the defense industry in China as well as the strategic importance of Li’s chosen field.

While lacking hard evidence that Li has been involved in espionage, the Canadian court’s decision takes into account the change of potential future activities by Li which could harm Canada’s interests. The court ruling underscores concerns in Canada about China’s use of students as an intelligence gathering mechanism.

Source: Voice of America, January 10, 2024
https://www.voachinese.com/a/vancouver-landmark-espionage-ruling-canadian-court-bars-chinese-student20240109/7432713.html

Briefings | | |   Defense/Military Geo-Strategic Trend

Lianhe Zaobao: Hyundai Motor Sells Chongqing Factory at Half Price

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that South Korea’s Hyundai Motor Co.’s joint venture in China sold its factory in Chongqing for RMB 1.62 billion (around US$227.6 million), less than half the original asking price from when the factory was originally put up for sale in August of last year. Hyundai faces fierce price competition and slowing demand in China.

The factory started operations in August 2017 and is the second factory sold by Hyundai Motor in China. In addition to the recent sale, Hyundai Motor sold a Beijing-based factory in 2021. There are now three remaining Hyundai factories in China, down from five at the peak.

Hyundai said the sale was a move to optimize its business structure in China, aiming to shift focus from the volatile Chinese market to other Asian countries such as India and Indonesia. As China rapidly transitions to electric vehicles, South Korean carmakers Hyundai and Kia are facing difficulties in their China strategies. China is the world’s largest auto market. It’s worth noting that sales in the Chinese market accounted for only five percent of the two companies’ total global sales in the third quarter of 2023.

Source: Lianhe Zaobao, January 17, 2024
https://www.zaobao.com.sg/realtime/china/story20240117-1462659

Briefings | | |   Economy/Resources Geo-Strategic Trend

China Obtains 99 Year Lease on Myanmar Port After Brokering Regional Ceasefire

China has obtained rights to a Port in Kyaukpyu, Myanmar for 99 years after Beijing negotiated a ceasefire between the Myanmar government and an armed alliance of opposition groups. The Kyaukpyu Port will give China a logistical presence on the Indian Ocean, enabling bypass of the Malacca strait shipping route. Some have said that Beijing supported the opposition group in Myanmar so as to pressure Myanmar’s government.

The past few months’ conflict in Myanmar started with three armed groups in northern Myanmar (the Kachin, the De’ang, and the Shan) banding together to form a “Myanmar Alliance Army.” The group launched attacks against Myanmar’s government forces in the name of “rescuing Chinese people and combating electronic fraud.” The alliance army secured a series of victories against the Myanmar government army, taking some territory.

On January 10th and 11th, China successfully brokered a ceasefire agreement between the two sides. The deal was struck in Kunming City, Yunnan Province, China. As part of the agreement, Beijing demanded that the Myanmar government enter a contract leasing Myanmar’s Kyaukpyu Port to China for 99 years. Having suffered defeats in the field, the Myanmar government had no choice but to cede use of the port.

According to the Aboluo website, Beijing provided support to the Myanmar Alliance Army in the form of advanced weapons, communication equipment, and drones. There were also rumors that Chinese soldiers dressed as members of the alliance army and fought some of the battles against the Myanmar government’s military. Aboluo commentary suggests that China supported the armed opposition in Myanmar not to “stop electronic fraud crime rings in Myanmar” but rather to secure use of the port in Kyaukpyu.

The Kyaukpyu Port is situated on the Indian Ocean; it may well become the best seaport serving the southwest and central regions of China. Its use will significantly reduce China’s dependence on shipping routes through the Strait of Malacca, making it easier for China to import and export to the global market directly via the Indian Ocean.

Beijing proposed a development plan for Kyaukpyu Port as early as 2007 under its “Belt and Road Initiative,” aiming to establish a land-sea transportation network connecting Kyaukpyu to China’s Kunming city via railways and highways. Negotiations between Beijing and Myanmar went on for 12 years. China and Myanmar signed a 50-year lease agreement for the port in 2018, but this agreement fell apart when Myanmar’s current leader Min Aung Hlaing came to power in a 2021 military coup.

Source: Aboluo, January 15, 2024
https://www.aboluowang.com/2024/0115/2004525.html

Briefings | | |   @CS Defense/Military Geo-Strategic Trend

People’s Daily on Recent Financial Cooperation Between China and Arabic Countries

CCP newspaper People’s Daily has published a list of ways that China has been cooperating with Arabic countries recently.

  • Starting on January 1, 2024, Saudi Arabia, Egypt, the United Arab Emirates (UAE), Iran, and Ethiopia officially became members of the BRICS countries, increasing the total number of BRICS member countries from 5 to 10. Abdullah, the Minister of Economy of the UAE, stated that there would be additional capital injection into the BRICS Development Bank.
  • On November 28, 2023, China People’s Bank and the UAE Central Bank renewed their Renminbi/Dirham Bilateral Currency Swap Agreement, valid for 5 years, with a swap scale of 35 billion RMB/18 billion UAE Dirhams.
  • In November 2023, the People’s Bank of China signed a bilateral currency swap agreement with the Saudi Central Bank, with a swap scale of 50 billion RMB/26 billion Saudi Riyals. The agreement is valid for 3 years and can be extended with mutual consent.
  • In October 2023, the China Export-Import Bank signed a cooperation agreement with the African Bank of Morocco. Both parties will “actively promote economic and trade exchanges and financial cooperation through project financing, parallel financing, and trade financing.”
  • The Chinese Ambassador to Saudi Arabia, Chen Weiqing, said that as of 2023 the China’s Export-Import Bank and the National Bank of Saudi Arabia have successfully implemented the first RMB loan project [to Saudi Arabia]. The Bank of China and the Industrial and Commercial Bank of China have also opened branches in Saudi Arabia.
  • The 2023 International Maritime Awards ceremony was held in Shanghai, where the COSCO Shipping Ports’ Abu Dhabi Terminal won the “Port Terminal Innovation Award.” The terminal was jointly constructed by COSCO Shipping Ports and the Abu Dhabi Ports Authority, with support from China’s Silk Road Fund. Since opening in 2018, the terminal has established direct connections with 65 ports worldwide. Its container throughput exceeded 1 million standard containers in 2022.
  • On October 30, 2023, the China Development Bank completed the full disbursement of a 7 billion RMB loan agreement with the Central Bank of Egypt.
  • On October 9, 2023, the China Export Credit Insurance Corporation issued the first medium-to-long-term insurance policy for a “new energy power” financing project, providing medium-to-long-term export buyer credit insurance support for the “Manna 2” 500 MW photovoltaic power (solar power) station project in Oman. In the same month, the performance test for Unit 4 of the Hassyan Power Station project in Dubai was successfully completed, marking the commercial operation of all 4 units at that power station. The power station was jointly financed and constructed by China’s Silk Road Fund, the Harbin Electric Group, and UAE investment institutions, representing the first investment of the Silk Road Fund in the Middle East.
  • The Industrial and Commercial Bank of China recently held a bond listing ceremony at the Nasdaq Dubai Exchange. The “green bonds” issued by the bank were simultaneously listed on stock exchanges in Hong Kong, Dubai (UAE), Singapore, and Luxembourg, with a total issuance size of approximately USD 2 billion.
  • In November 2023, Shanghai Stock Exchange signed a “memorandum of understanding for cooperation” with Dubai Financial Market. Both parties “plan to jointly explore and develop financial products related to ESG (environmental, social, and corporate governance) and sustainable development, as well as cross-border indices, exchange-traded funds (ETFs), and other financial products.”

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Briefings | | |   Economy/Resources Geo-Strategic Trend

More Taiwanese Foreign Investment in U.S. Than in China, a First in 30 Years

In the near future, Taiwanese investment in mainland China is expected to plunge to around 10% of investment levels seen in 2023. Although some investment data from the end of 2023 have not yet been released, available data suggest that Taiwan’s 2023 investments in the U.S. were about triple those in mainland China, with the U.S. attracting about nine times more investment from Taiwan than in 2022. This marks the first time since 1993, when Taiwanese regulations allowed for investment in China, that America has attracted more Taiwanese funding than China. The decline of Taiwan’s investment in China is attributed both to the economic slowdown affecting the mainland as well as to inability of Taiwan and Mainland China to set aside political issues across the Taiwan Strait.

U.S.-China confrontation has led to punitive tariffs, worsening the business climate for Taiwanese companies operating in China. Another factor driving Taiwanese investment trends are steps taken by Taiwan’s Democratic Progressive Party government to reduce Taiwan’s economic dependence on China. The DDP under Tsai Ing-Wen even offered financial incentives for Taiwanese companies operating in China to move their production back onshore to Taiwan.

Data show that Taiwan’s total foreign investment approvals from January-November 2023 rose 87% year-over-year to $25.7 billion. Meanwhile, Taiwanese investments into mainland China dropped 34% during the same period, falling to just $2.9 billion or 12% of total foreign investment approvals. Back in 2010 when Taiwan and China signed the landmark Cross-Strait Economic Cooperation Framework Agreement, 84% of Taiwan’s investment went to the mainland. That fell to 34% in 2022 and was 12% in 2023.

Approvals for Taiwanese investments in Europe and the U.S. have surged, with investments in the U.S. for January through November of 2023 totaled $9.6 billion, nine times higher than the same period in 2022. Taiwan’s 2023 investments in Europe and the U.S. comprised 37% of total Taiwanese overseas investment. Taiwan’s investments in Germany rose 25-fold to $3.9 billion (15%), exceeding investments in mainland China figure. Taiwanese investments in semiconductor facilities and other technology are playing a key role in driving this trend.

Source: Nikkei, January 2, 2024
https://zh.cn.nikkei.com/china/ccompany/54450-2024-01-02-08-47-53.html

Briefings | | |   Geo-Strategic Trend

Lianhe Zaobao: China’s Weibo Blocked “Taiwanese Election” Search Results on Election Day

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that Taiwan’s presidential and legislative elections took place on January 13, and Mainland Chinese netizens were paying close attention to the election results. After voting began at 8 a.m. that day, the relevant term “Taiwan Election” was on the “hot search ranking list” on Weibo, one of the largest social media platforms in Mainland China. The number of views on the topic quickly reached 163.2 million. However, the popular topic was soon blocked on Weibo.

Before the “Taiwan Elections” topic was blocked, many Mainland Chinese netizens posted comments and discussion on this topic. Some netizens called for improving relations between Mainland China and Taiwan after the Taiwanese election, and some netizens expressed their hopes for the DPP’s presidential candidate Lai Ching-te to win the election so that the Chinese military would “unify by force” sooner. (Taiwan’s DDP party, which won the presidency in the election, is the party that’s most opposed to cooperation with Beijing.)

Since Chinese official media, including Xinhua News Agency, CCTV News and People’s Daily, had very little coverage of the Taiwan election that day, some netizens asked on Weibo: “Is today the voting day for Taiwan? Why is there no news coverage?” Many related topics were blocked on Weibo as well. The Spokesperson of the Chinese Ministry of Foreign Affairs said in a press conference two days earlier that “the United States must not interfere in Taiwan’s elections in any form” – this quote remained visible on Weibo.

Source: Lianhe Zaobao, January 13, 2024
https://www.zaobao.com.sg/news/china/story20240113-1461930

Briefings | | |   Geo-Strategic Trend Social Stability

UDN: China’s Exports Fell 4.6 Percent Last Year

United Daily News (UDN), one of the primary Taiwanese news groups, recently ran a report on official 2023 data published by the China’s General Customs Administration. According the data, which are denominated in U.S. dollars, 2023 exports fell by 4.6 percent year-over-year, imports fell by 5.5 percent year over year, and aggregate imports and exports decreased by 5.0 percent year-over-year. China’s annual trade surplus was US$823.22 billion.

The last time that China experienced a decline in USD-denominated exports was seven years ago, in 2016, when exports fell by 7.7 percent.

At the “2023 Imports and Exports Press Conference” held by China’s State Council Information Office, official RMB-denominated data were released. Priced in RMB, China’s 2023 exports increased by 0.6 percent year-over-year, imports decreased by 0.3 percent year-over-year, and aggregate imports and exports increased by 0.2 percent year-over-year.

 

Chinese YoY Trade Growth, 2023
in USD in RMB
Exports -4.6% +0.6%
Imports -5.5% -0.3%
Aggregate -5.0% +0.2%

 

Wang Lingjun, deputy director of China’s General Customs Administration, said “the complexity, severity, and uncertainty of the external environment have increased. To further promote the stable growth of international trade, China needs to overcome some difficulties and make more efforts.”

Source: UDN, January 12, 2024
https://udn.com/news/story/7333/7703838

Briefings | | |   Economy/Resources Geo-Strategic Trend