Geo-Strategic Trend - 39. page

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, according to the Korean Central News Agency, North Korea successfully test-fired a ballistic missile using solid fuel. General Secretary of the Workers’ Party of Korea and Chairman of the State Council Kim Jong-un guided the test launch. South Korea’s Joint Chiefs of Staff confirmed the North Korea missile launch into the eastern waters of the Korean Peninsula that day, and the South Korean military is analyzing specific parameters such as the missile type and flight distance. This is North Korea’s first launch of a ballistic missile 17 days after it launched a short-range ballistic missile (SRBM) on March 27, and it is also the ninth ballistic missile launch this year. It is worth noting that Kim Jong-un, the supreme leader of North Korea, presided over the Sixth Enlarged Meeting of the Eighth Central Military Commission of the Workers’ Party of Korea on the 10th, emphasizing the necessity of expanding the “war deterrent force.” Also, according to NHK, the Japanese government issued a nationwide instantaneous warning around the same time, indicating that North Korea was suspected of launching a ballistic missile. Later, Japan’s Defense Ministry announced that a ballistic missile launched by North Korea had landed, but did not say where it landed.

Source: Sina, April 4, 2023
https://news.sina.com.cn/w/2023-04-14/doc-imyqhyiq6569030.shtml

Global Times recently reported that the European Council and the European Parliament have reached a provisional agreement on the Anti-Coercion Instruments Act (ACI). The bill aims to prevent third countries from economically coercing the European Union and its member states through measures affecting trade or investment. French media quoted Bernd Lange, chairman of the International Trade Committee of the European Parliament, as saying that ACI will prove to be a powerful deterrent to future economic coercion. “It’s not really a water gun – it’s a real gun,” he said. All these new measures are clearly intended as a last resort. The European Commission will first negotiate directly with the relevant third country to allow the other party to withdraw the coercive measures that have been implemented, or to demand compensation for losses. Many media believe that the United States and China are the targets of this EU bill. According to South China Morning Post, the proposal of the bill was not originally aimed at China, but to counter Trump’s imposition of tariffs on EU goods. However later, in the context of Lithuania’s trade with China being blocked because of the Taiwan issue, this bill once again received widespread attention within EU. Now as a unilateralist policy tools targeting China’s, the ACI Act has somewhat changed its original purpose. “Economic coercion” needs to formulate basic a definition acceptable to all parties. And it should obtain corresponding support at the level of international law and WTO rules. For example, on the issue of Lithuania, although the EU has lodged a complaint in WTO, it is difficult to get support. ACI has also been questioned within the EU. Some EU members are worried that ACI will turn EU towards protectionism and trigger a trade war. Europe should abandon its confrontational approach and actively cooperate with China.

Source: Global Times, March 29, 2023
https://world.huanqiu.com/article/4CHS9n14XCK

Xinhua recently reported that, as a “by-product” of the protracted Ukraine crisis, the European Union had to increase its energy dependency on the United States last year in order to make up for the huge energy gap caused by the sanctions on Russia. According to data released by Eurostat, the United States has replaced Russia as the largest crude oil supplier to the European Union, followed by Norway and Kazakhstan. As of December 2022, 18 percent of the EU’s imported crude oil came from the United States. This data represents a significant shift since, in the meantime, Russian crude oil accounts for 4 percent of total EU crude oil imports. However, many EU countries used to rely on Russia for energy. And the counterproductive effect of sanctions against Russia is becoming increasingly apparent. Energy shortages, soaring prices, and soaring living expenses have become common social problems. A senior official of the Russian government said that Russia has successfully transferred all oil exports affected by Western sanctions to “friendly countries”. Russian Deputy Prime Minister Alexander Novak said that Russia’s oil exports to India increased by about 22 times in 2022, but he did not disclose the specific amount. However, Russia’s oil and gas output is expected to drop this year amid Western curbs and fewer European buyers.

Source: Xinhua, March 29, 2023
https://bit.ly/3m0xhiv

According to Chinese state media, on March 28, Xi Jinping spoke by telephone with Crown Prince and Prime Minister Mohammed bin Salman of Saudi Arabia claiming that China-Saudi Arabia relations are now at their best ever and that China is willing to work with the Saudi side so that the two countries support each other firmly on issues concerning their core interests. According to the Saudi Press Agency, Saudi Crown Prince and Prime Minister Mohammed expressed appreciation for China’s support for “efforts to develop good neighborly relations.”

On March 26, Saudi oil giant Saudi Aramco announced that it had joined forces with China’s North Industries Group (Norinco) and the Panjin Xincheng Industrial Group to build a large integrated refinery and chemical complex in Panjin city of Liaoning Province. The three parties will jointly fund the establishment of Huajin Aramco Petrochemical Company (HAPCO), with Aramco, Norinco and Panjin Xincheng holding 30 percent, 51 percent and 19 percent respectively. The joint venture will include an oil refinery with a daily processing capacity of 300,000 barrels and a chemical plant with an annual capacity of 1.65 million tons of ethylene and 2 million tons of paraxylene. Construction will begin in the second quarter of 2023 and is expected to be fully operational in 2026. Aramco will supply up to 210,000 barrels of crude oil per day to the venture.

Earlier this month, Saudi Aramco reported annual profits of $161 billion in 2022, the highest annual profit ever recorded by a global energy company. Norinco is China’s largest producer of military equipment.

On March 27, Saudi Aramco signed another definitive agreement to acquire a 10 percent stake in Rongsheng Petrochemical Company Limited (Rongsheng Petrochemical) based in Hangzhou, Zhejiang Province for 24.6 billion yuan ($US 3.6 billion). Under the agreement, Aramco will supply 480,000 barrels of crude oil per day to Rongsheng Petrochemical’s subsidiary Zhejiang Petrochemical Co. The two sides plan to cooperate in trading, refining, chemical production, crude oil storage and technology licensing. The deal is expected to be completed by the end of 2023.

In addition to the above two agreements, on March 26, the Guangdong provincial government and Saudi Aramco signed a memorandum of cooperation proposing a framework for cooperation in exploring investment opportunities in a number of areas, including energy cooperation, research and innovation, industrial projects, financial cooperation, and talent exchange.

Source: Deutsche Welle, March 28, 2023
https://p.dw.com/p/4PMof