Geo-Strategic Trend - 37. page

The Fiji government, under pressure from Beijing’ changed the name of Taiwan’s Representative Office in its country from “The Republic of China (Taiwan)” to “Taipei.”

The previous Fiji government had a closer relationship with China. Under China’s pressure, on March 15 it renamed the Taiwan representative office to “Taipei Trade Office in Fiji.” It later signed a secret treaty with China on police exchanges, which allowed China to station a police force in this Pacific island country. A pro-democracy multi-party joint government took power earlier this year after the general election. The new government restored the Taiwan office’s original name from “Trade Mission of the Republic of China (Taiwan) to the Republic of Fiji.’  However, 3 months later the Fiji government reverted it back to “Taipei Trade Office in Fiji.”

Zhou Jian, China’s Ambassador to Fiji, expressed that China appreciated Fiji for following the “one China” principle. He said that he had successfully convinced the Fiji government to rename the Taiwan office.

Fiji also faced a strong backlash from China after its new Prime Minister started to consider stopping the police exchange treaty with China.

Source: Voice of America, June 22, 2023
https://www.voachinese.com/a/fiji-changes-taiwan-diplomatic-mission-name-back-to-trade-office-20230622/7148002.html

Italy, the only G7 country participating in China’s “Belt and Road Initiative,” is contemplating its withdrawal from the program. To persuade the Italian government to renew the agreement, a delegation led by Liu Jianchao, head of the International Department of the Chinese Communist Party, is reportedly being sent to Rome. The main objective of Liu’s visit is to engage in a dialogue with Italy’s center-right governing coalition, particularly with Prime Minister Giorgia Meloni, in order to secure the renewal of the “Belt and Road Initiative” agreement by the end of the year.

Italy joined the initiative in 2019 under former Prime Minister Giuseppe Conte, but its economic benefits were considered to be below expectations. The current memorandum of understanding for cooperation is set to expire at the end of this year, and, if it is not renewed, it will become invalid. On multiple occasions, the Meloni government has expressed its inclination to withdraw from the initiative .

The Chinese Ambassador to Italy, Jia Guide, warned that if the “Belt and Road Initiative” is not renewed by the end of the year, it will pose a significant obstacle to bilateral exchanges. China is planning to send an important delegation, including ministers responsible for propaganda and customs, to visit Italy in the near future. However, if Italy withdraws from the initiative, China has threatened to suspend such exchanges and visits.

China has also hinted at possible economic and trade consequences for Italy if it chooses to withdraw from the “Belt and Road Initiative.” The official Chinese media outlet, the Global Times, has conveyed coercive messages in this regard.

Source: Radio Free Asia, June 23, 2023
https://www.rfa.org/mandarin/Xinwen/4-06232023105817.html

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the US aircraft carrier USS Ronald Reagan will dock in the central Vietnamese port city of Da Nang on June 25, for six days. The USS Ronald Reagan is the ninth ship of the Nimitz-class nuclear-powered aircraft carrier. While the situation in the South China Sea remains tense, it is very rare for a US warship to call at the port of this Southeast Asian country. The Ronald Reagan was the third US aircraft carrier to visit Vietnam after the Vietnam War. In 2020, to commemorate the 25th anniversary of the end of the Vietnam War, the fourth ship of the Nimitz-class nuclear-powered aircraft carrier, the USS Theodore Roosevelt, docked in Vietnam. China claims almost the entire South China Sea, which includes the exclusive economic zones of Vietnam and other countries in the region. The South China Sea is an important waterway for international routes. American aircraft carriers often pass through this resource-rich sea area and Chinese warships often track and monitor them. The Chinese aircraft carrier Shandong fleet sailed southwest of the Taiwan Strait only a few days ago.

Source: Lianhe Zaobao, June 23, 2023
https://www.zaobao.com.sg/realtime/world/story20230623-1407046

Popular Hong Kong new online media HK01 Network recently reported that, Germany just released the Report of the Federal Office for the Protection of the Constitution. Although Germany releases this report every year, this time it is extraordinary both in terms of the strength of its warnings and in measuring changes in Germany’s security environment within a year. German Interior Minister Nancy Faeser said at a press conference that Russia’s war on Ukraine is a turning point for Germany’s domestic security. However, the strongest warning in the Report is directed at China, which it calls Germany’s “greatest threat in terms of economic and scientific espionage.” Earlier, the German government released, for the first time, a comprehensive national security strategy aimed at expanding Germany’s efforts to counter new military, economic and geopolitical threats. The Report indicated that Germany was one of the most important targets for Chinese investment in Europe in 2022. Direct investment not only provides opportunities for China to close its innovation deficit and achieve technological leadership, but also opens the door to political influence, espionage, and sabotage. These activities could also jeopardize Germany’s competitiveness as an industrial and technological hub and undermine the legal system of a market economy. Ultimately, this threatens to lead to a loss of prosperity and thus jeopardize democracy, social cohesion and Germany’s independence. Chinese Premier Li Qiang was visiting Germany at the time the Report was published.

Source: HK01, June 21, 2023
https://tinyurl.com/5n92u5pm

Japanese home appliance companies like Hitachi, Mitsubishi Electric, and Fujitsu General are taking steps to improve their supply systems for residential air conditioners following the challenges faced during the summer of 2022. The COVID-19 pandemic led to production stoppages and semiconductor shortages, impacting the sale of air conditioners. To avoid missed profit opportunities and meet the high demand for air conditioners in 2023, these companies are enhancing their production capabilities and supply chains.

Hitachi Johnson Controls Air Conditioning has established a new production line for indoor air conditioning units in Tochigi Prefecture, Japan. By increasing production capacity and adding around 200 workers, the company aims to meet the summer demand for air conditioners. Previously, most of their air conditioners were manufactured in China, but the temporary shutdown of the Shanghai factory in 2022 disrupted production and semiconductor procurement. Learning from this experience, Hitachi decided to shift production to Japan, increasing the proportion of air conditioners manufactured in Japan by 20 percentage points.

Mitsubishi Electric’s Shizuoka factory is operating at full capacity to produce lightweight outdoor units for high-demand models. The company incorporated feedback from construction workers and adopted a design that is easier to install. Fujitsu General, on the other hand, is intensifying production at its Shanghai factory targeting the Japanese market. The company implemented measures to overcome pandemic-related restrictions, such as using alternative components.

Japanese companies are collaborating closely in component procurement and production to improve the supply system. They are also implementing long-term measures to ensure a stable supply chain, such as adjusting product designs to reduce the number of components and localizing component procurement in various factories worldwide.

To address rising electricity prices and changing consumer preferences, companies are introducing energy-saving and eco-friendly air conditioner models with higher efficiency. Second-hand air conditioners have also become popular, leading to increased sales in this market segment.

Overall, Japanese home appliance companies are focused on building resilient supply chains and balancing stable supply with profitability. They have learned from the challenges of the past and are taking proactive measures to meet the demand for air conditioners and offer innovative, energy-efficient products to consumers.

Source: Nikkei, June 14, 2023
https://zh.cn.nikkei.com/industry/manufacturing/52674-2023-06-14-10-15-32.html