Skip to content

Geo-Strategic Trend - 30. page

Lianhe Zaobao: South Korean Government Establishes Working Group on China’s Financial Risks

Singapore’s primary Chinese language-newspaper Lianhe Zaobao recently reported that the South Korean government has responded to elevated risk in China’s real estate industry by setting up a special working group, the “China Economic Situation Team,” focused on the impact of Chinese financial risk on the Korean economy.

According to the article, the group will work under the policy guidance of the Ministry of Finance, maintain close cooperation with multiple government branches such as the Bank of Korea (the Central Bank), the Ministry of Industry, Trade and Energy, and the Financial Commission, and pay careful attention to changes in China’s economic situation. In addition, the government’s high-level dialogue mechanism will also focus on China’s real estate financial risks.

Given that the Korean and Chinese economies are tightly linked, South Korea’s Ministry of Finance thinks that the South Korean government should closely monitor the impact of Chinese risk on the Korean financial market and real economy. South Korea’s Economic Emergency Management Working Group, chaired by the deputy minister of the Ministry of Finance, will discuss countermeasures, and the Committee on Macroeconomic and Financial Issues will also evaluate China’s economic situation frequently.

Source: Lianhe Zaobao, August 20, 2023
https://www.zaobao.com.sg/realtime/china/story20230820-1425349

Briefings | | |   Geo-Strategic Trend

For “Humanitarian Reasons,” China Doesn’t Block Philippine Resupply of Grounded Warship in Disputed Waters

On August 7, China blocked two Philippine supply vessels from unloading supplies at the Second Thomas Shoal in the South China Sea. China blocked the supply vessels by firing water cannons at them. The vessels were supposed to deliver supplies to soldiers stationed on a Philippine warship BRP Sierra Madra that has been grounded at the atoll since 1999. Both China and the Philippines claim sovereignty over the Spratly Island area where the Second Thomas Shoal is located.

On August 22, the Philippines sent resupply ships to the shoal again. This time, China didn’t stop them.

Following the event, Xinhua published a statement by the Spokesman of Chinese Coast Guard Bureau: “On August 22, two Philippine supply vessels and two [Philippine] marine police vessels entered the waters adjacent to the Second Thomas Island in the Spratly Islands area without the permission from the Chinese Government. In accordance with the law, the Chinese Marine Police gave the Philippine vessels a stern warning, followed them throughout their entire journey, and effectively restrained them. At the same time, in view of the fact that the Philippine vessels were not carrying large-scale building materials, the Chinese Marine Police made a temporary special arrangement for humanitarian reasons, allowing the Philippine vessels to transport food and other living necessities to the military vessels stranded on the beach. China has indisputable sovereignty over the Spratly Islands and their adjacent waters, including the Second Thomas Island. China firmly opposes the Philippines using the excuse of “resupply” to deliver illegal building materials to the illegally-grounded warship. The Chinese Maritime Police will continue to protect China’s rights and carry out law-enforcement activities in the waters under China’s jurisdiction in accordance with the law.”

Source: Xinhua, August 22, 2023
http://www.news.cn/world/2023-08/22/c_1129816942.htm

Briefings | | |   @CS Geo-Strategic Trend

China’s Weaponization of Mekong River Dams to Pressure Downstream Countries

For the past decade, the Mekong River has had abnormal water pattern: high flows during the dry season and low flows during the rainy season. This is caused by the upstream Chinese dams, which release water for power generation during the dry season and retain water during the rainy season.

The Mekong River has a total length of more than 4,800 kilometers (~3000 miles) in its main branch. Its 2,139-kilometer (1330 mile) upper section in China is known as the Lancang River. After flowing out of China, the Mekong River flows through five countries in Southeast Asia – Myanmar, Laos, Thailand, Cambodia, and Vietnam. It is a lifeline supporting 65 million people.

By the end of December 2020, the Chinese Communist Party (CCP) had built 12 giant dams on the main branch of the Lancang River, with eight more under construction. In addition, there are 85 dams on hundreds of tributaries to the Lancang River.

On January 1, 2019, China put four newly-constructed dams into operation. As a result, the Lower Mekong has experienced a severe drought starting that year and lasting for more than four years (through the present).

The year 2020 was the driest year for the Mekong on record. Although upstream Chinese reservoirs had sufficient water during the rainy season, some of the Mekong River beds downstream were dry and cracked.

China’s use of dams to exert pressure on downstream countries has been going on since at least 2016. In March of that year, the Mekong River’s water volume was reduced, and Vietnam’s rice region suffered a severe drought, with seawater back filling the river bed. The CCP then took the “generous” step of releasing water for “disaster relief.” A week later, China’s then-Premier Li Keqiang hosted the Lancang-Mekong Cooperation Meeting in Sanya, Hainan. The five thirsty downstream countries signed the Lancang-Mekong Agreement, signing on to Chinese investment, loans, and a special fund to promote China’s Belt Road Initiative in Southeast Asia.

Source: Epoch Times, August 10, 2023
https://www.epochtimes.com/gb/23/8/10/n14051766.htm

Briefings | | |   @CS Economy/Resources Geo-Strategic Trend

CCTV and African Media Discuss Future Collaboration

Chinese state newspaper People’s Daily reported that state broadcaster China Central Television (CCTV) signed a cooperation agreement with the African Broadcasting Union (ABU) and several other African media organizations upon Chinese President Xi Jinping’s visit to South Africa. The agreement aims to “strengthen cooperation in content creation and sharing, technological innovation, personnel training, and industry expansion.” It also aims to “promote mutual understanding and people-to-people exchanges between China and Africa.”

As part of the agreement, a “China-Africa Friendship (Season 4)” Chinese film and television program exhibition has been launched. According to People’s Daily, more than 10 high-quality programs will be screened by the mainstream media of South Africa, Zambia, Zimbabwe, and 10 other African countries.

Source: People’s Daily (China), August 22, 2023
http://paper.people.com.cn/rmrb/html/2023-08/22/nw.D110000renmrb_20230822_7-02.htm

Briefings | | |   Geo-Strategic Trend

Guangcha: U.S. Media Reported on China’s New Airport at Disputed Island Near Vietnam

Chinese media outlet Guangcha reported on a story run by U.S.-based news website The Drive. The “Warzone” of section of The Drive reported that China is building an airport on Triton Island, a small island among the disputed Paracels archipelago in the South China Sea. Triton Island is the closest of the archipelago’s islands to the coast of Vietnam.

Satellite images show a newly constructed runway, a large construction area, and a cement factory. The Drive’s article notes swift progress on construction of a 600-meter (2,000 feet) runway which the article says enhances logistic and aviation support capabilities, strengthening the Chinese army’s presence. The runway could be used for hosting short takeoff and landing fixed-wing types, such as turboprops and light aircraft, and also unmanned drones. According to the article, the island expands China’s surveillance and regional denial capabilities and may also be able to host forward operations such as submarine base.

The Guangcha article, after republishing some content from the article by The Drive, quoted Wang Wenbin, spokesperson of China’s Ministry of Foreign Affairs: “The U.S.’ use of the South China Sea issue to provoke issues among regional countries is extremely irresponsible and has ulterior motives.” “China, together with ASEAN countries, will continue to work to maintain peace and stability in the South China Sea and to promote prosperity and development in the region.”

{Editor’s Note: Guangcha is a Chinese media outlet that translates or summarizes reports from media in other countries with the purpose of aggrandizing the Chinese communist regime or of criticizing the U.S. and other Western countries, taking shots at the Western democratic system and “`values.}

Sources:
1. Guangcha, August 17, 2023
https://www.guancha.cn/military-affairs/2023_08_17_705410.shtml
2. The Drive, August 15, 2023
https://www.thedrive.com/the-war-zone/runway-being-built-on-chinas-closest-island-outpost-to-vietnam

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

US Order Banning Sensitive Investments in China: Impact on EU

German state-run media Deutsche Welle reported that the U.S. government has passed an executive order to restrict US corporate investment in China in key areas such as semiconductors and AI. This has implications for European businesses — the order reportedly applies not only to U.S.-based firms but also to European firms managed by US citizens.

Berlin regarded the new U.S. order with caution, noting that the E.U. is examining security risks associated with investment in third-party countries.  A spokesman for the German Ministry of Economic Affairs stated that, while Germany has mechanisms to screen Chinese investments, controlling outbound investments in China is a complex task.

Meanwhile, the E.U. announced that it will use a new tool to prevent circumvention of export bans related to sensitive technology, working with E.U. member states to identify affected tech areas like quantum computing and AI.

Some have criticized the U.S. order as lacking economic justification, saying that the US is using national security arguments to justify protectionism against China.

Source: Deutsche Welle, August 15, 2023
https://p.dw.com/p/4VCfM

Briefings | | |   Geo-Strategic Trend

China Squeezes German Products in European Market

German newspaper Handelsblatt reports growing concern among German companies over rising competition from Chinese exports, not just in low-tech goods but increasingly in complex, high-tech products. A recent study by the German Institute for Economic Research found China’s share of EU imports in industrial goods such as machinery and autos is rapidly increasing, while Germany’s is declining. In 2000, China accounted for just 2.5% of EU industrial imports versus 17.7% for Germany; by 2022, China’s share grew to 13% while Germany’s declined to 15.5%.

Experts attribute China’s gains to generous government subsidies throughout entire supply chains as well as the country’s recent efforts to catch up on technology and innovation. In machinery, China’s EU import share grew from 6.8% in 2010 to 11.4% last year, while Germany’s share fell from 22.6% to 20.5%. The auto market could be China’s next target, with capacity to produce 40 million EVs annually, greatly exceeding China’s domestic demand of 20-25 million units annually.

Source: Deutsche Welle, August 15, 2023
https://p.dw.com/p/4VCfM

Briefings | | |   Geo-Strategic Trend

Chinese Automakers Now Dominate Half of Russian Car Market

Central News Agency (Taiwan) reported that Chinese automakers’ market share in Russia has surged to 52%, making Russia the largest overseas market for Chinese cars. This growth in market share follows the suspension of exports to Russia by automakers from many other regions, a reaction to Russia’s invasion of Ukraine. Chinese brands have taken advantage of this situation, filling the void left by foreign auto firms.

In July, China’s Chery sold 17,735 cars in Russia, up 4.2 times from the same period last year. Geely sold 8,800 new cars in Russia, and several other Chinese brands also made the top 10 in terms of sales volume in Russia.

The report noted that, due to import tariffs and other factors, Chinese cars retail in Russia at much higher prices than they sell for in China. Chinese cars are still competitive in the Russian market, however, as the Chinese brands have been able to deliver value by focusing on a small number of models with high product strength.

The Russian market is only one facet of the recent, dramatic increase in Chinese automobile exports. In the first half of this year, China’s automobile exports to all regions increased by 76.9% annually, surpassing Japan as the world’s top auto exporter.

Source: Central News Agency (Taiwan), August 15, 2023
https://www.cna.com.tw/news/acn/202308150387.aspx

Briefings | | |   Geo-Strategic Trend