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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

Lianhe Zaobao: Financing from China’s Four Major Banks to Russia Surged

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, since the outbreak of the Ukrainian war last year, Western institutions have imposed a series of sanctions on Russia, and banking institutions have also stopped operations in Russia. However, China’s Big Four banks are lending billions of dollars to Russia, filling the gap left by Western banking institutions. China’s four largest banks, including Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Bank of China, have quadrupled their exposure to Russia since the war began. At the beginning of 2022, the total loans of the four major banks in Russia were US$2.2 billion. According to the Russian Central Bank, in the 14 months to the end of March this year, this figure increased to nearly US$10 billion. This is part of China’s push to make the Chinese Yuan a global currency that will replace the U.S. dollar. More than 70 percent of trade settlements between Russia and China have been using local currencies. Almost all the currency used by China to purchase Russian oil in the past year was RMB. Before the war, more than 60 percent of Russia’s exports were paid in U.S. dollars and Euros, with RMB accounting for less than one percent.

Source: Lianhe Zaobao, September 5, 2023
https://www.kzaobao.com/shiju/20230905/146186.html

Briefings | | |   Geo-Strategic Trend

HKTDC: Chinese Companies Planning Overseas Business

Hong Kong Trade Development Council (HKTDC) recently published a research study on Mainland companies’ overseas strategy changes when Belt and Road is now at its 10-year anniversary. The research focused on companies in the Canton Greater Bay Area and the Yangtze River Delta Region. The study found that, in the face of the slow recovery after the pandemic and the increasing business challenges in traditional overseas markets affected by geopolitical factors, many Mainland companies have adjusted their “going global” strategies. Around 83.9 percent of the companies surveyed said they are facing various challenges caused by geopolitical tensions, insufficient market demand, and financing difficulties, etc. Nearly 90 percent of the companies have plans to develop international business in the next one to three years. As many as 72.8 percent of the companies hope to explore business opportunities in RCEP and other Belt and Road emerging markets. They mainly plan to expand international business in four major areas: logistics and transportation (28.8 percent), marketing and sales (26.9 percent), investment and factory establishment (23.3 percent), and overseas procurement (15.9 percent). Successfully conducting international business requires extensive professional service support to assist them in planning and risk management. The study shows that the services most needed include: marketing and e-commerce (97 percent), financing and risk management (89.9 percent), product standards and ESG service support (89.2 percent), as well as tax planning and compliance (88 percent).

Source: HKTDC, September 5, 2023
https://research.hktdc.com/sc/article/MTQ3MTQ1NjU4OA

Briefings | | |   Economy/Resources Geo-Strategic Trend

China’s First Province-Level Anti-Espionage Regulations

On September 1, 2023, the Chongqing municipal government implemented a set of detailed regulations called the “Chongqing Anti- Espionage Work Regulations.” It is the first local government in China to implement such rules following publication of the central government’s revised “Counter-Espionage Law” in July.

Chongqing’s regulations contain 29 articles. The first three articles echoed the central government’s Counter-Espionage Law. Starting from the fourth article, Chongqing’s regulations emphasize the supervisory role of the municipality’s state security agency. They call for close cooperation of various governmental departments in carrying out counter-espionage work, including the department of cyberspace administration, Taiwan affairs, national defense and science and technology, development and reform, education, science and technology, ethnic and religious affairs, public security, civil affairs, natural resources planning, urban and rural construction, commerce, veterans’ affairs, foreign affairs, postal management, and culture and tourism.

Civil services and public institutions will include counter-espionage propaganda in their training programs, and the education system will include such material in its teaching content.

For individuals involved in foreign exchange or collaboration, the regulations mandate a pre-departure anti-espionage education, a program of “overseas management” while the individual is abroad, and a post-return meeting. They also require that institutions stationed overseas or institutions who send people overseas develop espionage-prevention plans.

Many foreign organizations and individuals have been cautious about engaging with China since the Chinese Communist Party (CCP) pushed out the state-level “Counter-Espionage Law.” This has led to a significant reduction in foreign investment and travel to the country.

Source: Epoch Times, September 2, 2023
https://www.epochtimes.com/gb/23/9/2/n14065721.htm

Briefings | | |   Geo-Strategic Trend Government/Politics

China Declines Japan’s Proposed Mechanism to Assess Treated Nuclear Water

According to information obtained by Kyodo News, the Japanese government proposed that China join an IAEA international mechanism for objectively analyzing and assessing monitoring results related to radioactive material in seawater samples taken offshore from the Japanese Fukushima nuclear plant. Beijing declined to follow Japan’s suggestion. This highlights China’s uncompromising opposition to Japan’s release of treated nuclear waste water into the sea, making it difficult for Japan to enter science-based dialogue.

The international mechanism will compare and analyze monitoring results conducted separately by the Japanese government and the IAEA on seawater near Fukushima. Research institutions selected by an IAEA to participate in the organization include entities from the U.S., France, Switzerland, and South Korea. To ensure objectivity, Japan is not part of the mechanism.

According to sources familiar with Japan-China relations, Japan has repeatedly urged China through diplomatic channels to join the international mechanism, enabling China to make scientific judgments. China, questioning the mechanism’s effectiveness and independence, did not accept the proposal.

Regarding the treated water, Japan proposed that China and Japan establish a consultation mechanism composed of experts and officials from both countries. China has not yet responded to this proposal.

Source: Kyodo News, September 5, 2023
https://china.kyodonews.net/news/2023/09/28ac08ec5e50.html

Briefings | | |   Geo-Strategic Trend

Chinese Hackers Infiltrate German Corporate and Private Networks to Attack Government Agencies

The German Federal Office for the Protection of the Constitution issued a warning that Chinese hacking groups APT15 and APT31 are targeting German small and medium-sized enterprises and home networks, using the hacked networks to hide their identities when attacking German national and government institutions.

The agency’s cyber briefing report on Thursday said that the hacking groups successfully breached the German Federal Agency for Cartography and Geodesy (BKG) two years ago. The BKG is responsible for creating detailed maps and assessing satellite imagery. The report outlined how the hacking groups exploit security vulnerabilities to gain control of terminals, networks and devices in homes and small businesses.

The agency advised that companies and individuals should update their security software, take stock of all devices on their networks, replace old equipment that can no longer be updated, and change default passwords on new devices.

The hackers exploit flaws in routers, printers, smart home devices, lights, heaters, solar panels and more, using the hacked hardware to conceal their attacks on German national and political bodies. Once they control these devices, they can launch cyber-attacks against organizations, companies and government institutions while hiding behind private, inconspicuous networks.

Source: Deutsche Welle, September 1, 2023
https://p.dw.com/p/4Vpmo

Briefings | | |   Geo-Strategic Trend