Skip to content

Geo-Strategic Trend - 28. page

Central American Parliament Approves China’s Rubberstamp Congress as Permanent Observer, Abolishes Observer Status of Taiwan Legislature

The Central American Parliament ratified an agreement on September 25th to admit China’s National People’s Congress (NPC), the country’s rubberstamp Congress, as a permanent observer. Chinese Foreign Ministry spokesman Wang Wenbin welcomed the move at a press conference on September 26th, saying China is willing to further friendly cooperation with the Central American Parliament and countries in Central America on the basis of the one-China principle.

The agreement was approved by a majority vote at the Central American Parliament’s plenary session in Managua, Nicaragua. Wang said the decision reflects the parliament’s firm determination to develop ties with China.

On August 21st, the Central American Parliament adopted a resolution to abolish the status of Taiwan’s Legislative Yuan as permanent observer and admit China’s NPC instead. On September 22nd, the Speaker of the Central American Parliament and the NPC Standing Committee Chairman signed the agreement in Beijing, making the NPC a permanent observer.

The Central American Parliament statement said the NPC’s accession as observer will deepen dialogue around cooperation in areas like education, health, infrastructure, trade, agriculture and food security.

Source: Sputnik News, September 26, 2023
https://sputniknews.cn/20230926/1053644515.html

Briefings | | |   Geo-Strategic Trend

Mingpao: Hong Kong’s Container Throughput Fell 16 Percent, Far Behind Shenzhen

Mingpao, one of Hong Kong’s primary newspapers, recently reported that business has decreased at Hong Kong’s container terminals. This decrease contrasts with prior expectations that demand would increase following the easing of Covid-related commerce restrictions between Mainland China and Hong Kong. Hong Kong’s ports have taken a greater hit than the nearby Mainland Shenzhen Port in the Pearl River Delta.

Hong Kong’s container throughput during the first seven months of this year fell by 15.8 percent year-over-year, totaling 8.32 million TEU (standard containers). Container throughput for the month of July was 1.2 million TEU, down 17.9 percent compared with July of 2022. Meanwhile, the nearby Shenzhen port saw only a 4 percent decrease in year-over-year throughput during the first seven months (16.35 million TEU) and had a 7.6 percent increase in year-over-year throughput for the month of July (2.82 million TEU).

There has been basically no expansion of Hong Kong’s terminals in the past decade. Meanwhile, the layouts of the ports in Guangzhou and Shenzhen have become increasingly complete. Thus, some goods are no longer shipped through Hong Kong.

According to the Hong Kong Marine Department’s April 2023 ranking of the world’s top ten container ports, Hong Kong ranked ninth from 2020 to 2022, surpassed by Shanghai, Shenzhen, Guangzhou and other Greater Bay Area ports. Hong Kong was still ranked among the top three ports in the world between 2008 and 2012. It ranked fourth from 2013 to 2014 and fifth from 2015 to 2017.

Source: Mingpao, September 18, 2023
https://news.mingpao.com/pns/%E7%B6%93%E6%BF%9F/article/20230918/s00004/1694969700318/

Briefings | | |   Economy/Resources Geo-Strategic Trend

CNA: Foreign Participation in Hong Kong Stock Market Plummets

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, according to a research report by Morgan Stanley, overseas institutions’ participation in Hong Kong stocks has dropped by one third since 2021. Overseas funds are gradually withdrawing from the Hong Kong stock market.

In the years 2016 to 2020, participation of overseas institutions in Hong Kong stocks accounted for 39.5 percent, 37 percent, 36.6 percent, 32.1 percent and 39.5 percent, respectively. In 2021, participation dropped sharply to 26.7 percent, and dropped to 23.1 percent last year and 24.6 percent today. Morgan Stanley’s research showed that overseas institutional funds continue to withdraw and continue to reduce allocations to Mainland China and Hong Kong stocks. Foreign investors are less interested in participating in Mainland Chinese and Hong Kong stock markets due to uncertainty in China-US relations, political instability across the Taiwan Strait, risks in the Mainland’s real estate market, and uncertainty about the pace of China’s economic recovery.

Source: CNA, September 12, 2023
https://www.cna.com.tw/news/acn/202309120033.aspx

Briefings | | |   Economy/Resources Geo-Strategic Trend

Russia, China Bolster Energy Ties With $686M Joint Investment in Oil Transit Complex

Russia’s ONGK and China’s XY Group Industrial Development Co (轩辕集团实业开发有限公司) have agreed to jointly invest $686 million to build an oil transit complex in Russia’s Far East. This will boost Russian oil exports to China as Moscow expands infrastructure and shifts exports eastward, away from politically “unfriendly” Europe.

The financing deal was signed last week at an economic forum in Vladivostok. The complex will be built near a railway bridge crossing the Amur River, connecting Russian and Chinese border towns.

The $686 million complex will include a terminal able to store and load 5.8 million metric tons of crude oil yearly, plus oil and gas condensate blends. It will also have a warehouse for receiving, storing and distributing 1 million metric tons of petroleum products and fuel oil annually. Additionally, it will include facilities for transshipping 650,000 tons of liquefied petroleum gas per year.

China’s crude imports from Russia hit a record high in May, up 15.3% year-on-year. Meanwhile, Europe has cut Russian oil imports by 90% since the Ukraine war began.

Sanctioned by the West, Russia has turned to China as its strongest ally. China refuses to criticize Russia’s invasion of Ukraine and has increased economic cooperation, helping Russia offset losses from Western sanctions. Amid strengthening China-Russia economic ties, senior Chinese official Wang Yi visited Russia September 18-21 for strategic consultations, possibly to prepare for the leaders’ upcoming meeting.

Source: Voice of America, September 18, 2023
https://www.voachinese.com/a/russia-and-china-to-build-oil-transshipment-complex-for-686-mln-20230918/7272923.html

Briefings | | |   Geo-Strategic Trend

Li Qiang Announced China’s Leadership Training Programs for ASEAN Countries

Chinese Premier Li Qiang, speaking at the annual summit of the Association of Southeast Asian Nations (ASEAN) and China, unveiled China’s initiatives to train future leaders for ASEAN nations.

Li stated, “Fourthly, we will work together to expand humanistic exchanges. China is willing to work with ASEAN to continue to build a solid foundation of public opinion in our relations, implement the Global Civilization Initiative, and take next year’s co-hosting of the China-ASEAN Year of Humanistic Exchanges as an opportunity to further strengthen exchanges in the areas of culture, tourism, training, and youth, so as to continue to deepen the blending of civilizations and people-to-people exchanges. In the next three years, China will build 10 “China-ASEAN Modern Craftsman Institute” in ASEAN countries, continue to carry out the “Bridge of the Future” China-ASEAN Youth Leaders Training Program, and launch the “Ten Thousand People Training and Seminar Program,” to train 10,000 talents for ASEAN countries in the fields of governance, anti-corruption, and green development.”

Source: China’s Foreign Ministry website, September 7, 2023
https://www.fmprc.gov.cn/chn/gxh/tyb/gdxw/202309/t20230907_11139468.html

Briefings | | |   @CS Geo-Strategic Trend Government/Politics

Chinese Singer Accusing Ukraine for Killing Its Own People

Chinese singer Wang Fang blamed Ukraine for killing its own people, creating episode number two after her visit to the Mariupol Opera House in Ukraine, where she sang the Russian patriotic song “Katyusha.” The actions of Wang and the group she was with, known as the “Chinese self-media delegation,” drew strong criticism from the Ukrainian government and the international community, since Russia bombed the Opera House, resulting in the deaths of hundreds, including many children.

Upon returning to Moscow, the four people from the group held a press conference. Wang said, “When I saw that the Ukrainian Nazis were killing the children in the Donbass, a wave of anger went through me, so I decided to come to the Donbass to help the children.” Her husband, Zhou Xiaoping, an internet writer known for promoting communist and leftist ideologies, placed blame on Ukraine rather than Russia for the destruction of the theater. He also echoed Russian propaganda by asserting that Russia was protecting the local population from NATO attacks.

Source: China News Center, September 11, 2023

王芳、周小平接受俄罗斯媒体采访，声称马里乌波尔歌剧院是北约轰炸的

Briefings | | |   @CS Geo-Strategic Trend

Foreign Ministry Spokesperson Explains China’s Foreign State Immunities Act

China recently passed the Foreign State Immunities Act, and the Chinese Embassy in the United States provided an explanation from the Foreign Ministry’s spokesperson regarding this legislation.

Question: The Standing Committee of the National People’s Congress of China has recently considered and adopted the Law on Immunity of Foreign States. The Law adjusts China’s previous position of “absolute immunity” to authorize Chinese courts to accept cases in which a foreign State is the defendant. May I ask why China has made this adjustment?

Answer: …

The Law on the Immunity of China and provides exceptions to it, making it clear that Chinese courts may exercise jurisdiction over lawsuits arising from the non-sovereign acts of foreign States, such as lawsuits involving disputes over commercial activities, related personal injuries and property damages, and may, under strictly limited conditions, take coercive measures against property of a foreign State in connection with its commercial activities. This is fully consistent with international law and the practice of States.

As a responsible Power, China firmly upholds the principle of the sovereign equality of States, will protect the legitimate rights and interests of Chinese citizens and legal persons, and will respect the immunities that foreign States are entitled to under international law.

Source: Chinese Embassy at the U.S. website, September 5, 2023
http://us.china-embassy.gov.cn/lcbt/wjbfyrbt/202309/t20230905_11138002.htm

Briefings | | |   Geo-Strategic Trend Government/Politics

Chinese Capital Sweeps Japan and U.S.’s ‘Friendship-Shoring’ Countries

Chinese companies are aggressively investing in and shifting production to countries like Vietnam, Thailand and Mexico – areas seen by Japan and the US as alternatives to rely on instead of China. This is part of Japan and the US’s efforts towards “friend-shoring”, moving supply chains to friendly nations, but China is gaining ground.

From January to June 2023, China’s direct investment in Vietnam rose 37% year-on-year to $2.7 billion, far exceeding other countries like South Korea. Chinese firms offer wages in Vietnam more than twice the average to attract workers, making it hard for Japanese companies to maintain production bases. Overall, China’s direct investment balance in major ASEAN countries reached $52 billion in 2021, surpassing the US.

In Thailand, China’s direct investment from January to June accounted for over 20% of the total, ranking first and 70% higher than Japan. Thailand is becoming a production base for Chinese EV companies, shaking Japan’s auto dominance there. Similarly in Mexico, Chinese auto parts companies are increasing investments, approaching the levels of the US in 2022.

This illustrates risks to supply chains as China dominates certain critical materials like gallium and nickel. For example, 70% of nickel smelters in Indonesia, which produces half of global nickel, are owned by Chinese firms. Japan is losing ground, with Sumitomo abandoning a planned refinery to be replaced by a Chinese company.

While Japan and the US aim to exclude China from material processing and parts production, China’s dominance means it could choke exports. This risks Japan and the US’s goals for EV production if China limits exports. To compete, Japan and the US need to adopt strategies like joint R&D with local nations rather than just focus on friend-shoring. Overall, China is gaining advantage over Japan and the US in critical supply chain investments across Asia and Latin America.

Source: Nikkei Chinese, September 11, 2023
https://zh.cn.nikkei.com/china/ccompany/53259-2023-09-11-08-42-52.html

Briefings | | |   Geo-Strategic Trend