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Saudi Aramco Announces Two Investments in China

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

Briefings | | |   Geo-Strategic Trend

BBC Asked Staff to Delete TikTok

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the BBC urged staff to delete TikTok from company phones, becoming the latest international media outlet to ban the Chinese social media app. The BBC distributed a staff guide saying, “We advise against installing TikTok on BBC equipment unless there is a legitimate business reason. If you don’t need TikTok for business reasons, you should remove TikTok.” Earlier, the UK government banned TikTok on government-issued phones because the app is owned by the Chinese company ByteDance. The BBC, which is funded by the British government, explained that the decision was based on concerns raised by government authorities worldwide regarding data privacy and security. For staff who have TikTok installed on their personal phones but also use those devices for work reasons, the BBC asked them to contact the media’s information security team to discuss “the type of BBC information you are dealing with.” A BBC spokesperson said: “The BBC takes the safety and security of our systems, data and people incredibly seriously. We constantly review activity on third-party platforms – including TikTok – and will continue to do so.” The BBC is the latest media outlet to issue a ban on TikTok. On March 9, the Danish Broadcasting Corporation (DR) advised employees not to use TikTok on their work phones.

Source: NetEase, March 20, 2023
https://www.163.com/dy/article/I08T5DU4055623ZE.html

Briefings | | |   Geo-Strategic Trend Information/Technology

U.S. Claims Chinese-Made Ammunition Used at Ukrainian Battlefield

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, at a press conference, Wang Wenbin, spokesperson for the Chinese Foreign Affairs Ministry,  addressed a question on Chinese ammunition used in Ukraine. A reporter asked, “According to reports, a U.S. government source said that it had been confirmed that Chinese-made ammunition has been used at the Ukrainian battlefield many times. It may have been fired by the Russian army. Once confirmed, the US side will be ready to take action. The United States has notified its partner countries of the relevant information. What is China’s comment on this matter?” Wang responded, “China has always stood on the side of peace, dialogue and historical correctness, and will continue to play a constructive role in the political settlement of the Ukrainian crisis.” He emphasized that it is not China that provides weapons to the Ukrainian battlefield, but the U.S. The United States should stop fanning the flames and pointing fingers at other countries. Instead, the U.S. should play a constructive role in resolving the Ukrainian crisis politically, not the other way around. (Chinascope notes: According to a Kyodo News’ March 18 report, the United States found that a large amount of Chinese ammunition was suspected to have been used on the Russian-Ukrainian battlefield. It was a/so suspected that the ammunition was fired by the Russian army. After the U.S. government analyzed the ammunition and other factors, it has been determined that China produced some of the ammunition, but the specific model of the ammunition has not been disclosed.)

Source: Sina, March 20, 2023
https://news.sina.cn/2023-03-20/detail-imympcpw3413218.d.html

Briefings | | |   Geo-Strategic Trend US-China Relations

Global Times: Taiwan’s Chip Exports to the Mainland and HK Fell for Four Consecutive Months

Global Times recently reported that, in February, under the influence of the international political and economic situation, Taiwan’s exports of integrated circuit chips to the Mainland and Hong Kong fell for the fourth consecutive month. According to data from Taiwan’s Ministry of Finance, the exports fell by 31.3 percent in February year-over-year. This was the most serious decline since 2009, surpassing the 27.1 percent drop in January this year. China’s market share of Taiwan’s chip exports fell to its lowest level since February 2019. Meanwhile, total semiconductor shipments from Taiwan to the world  fell 17.3 percent in February from a year ago.

In the meantime, Singapore’s primary Chinese newspaper Lianhe Zaobao also reported on this matter. However, Taiwan’s statistics also showed that, in February, its exports to the United States jumped 22.3 percent. Taiwan is the world’s largest producer of high-end chips, but Taiwan’s status as a geopolitical hotspot contributed to the decline of its global chip exports. Mainland China has been seeking to increase its self-sufficiency in semiconductor technology, countering U.S. sanctions. The Biden administration reached an agreement with the Netherlands and Japan in January to limit the export of some advanced chip-making machines to China.

Sources:
(1) Global Times, March 20, 2023
https://m.huanqiu.com/article/4CA2kkoaqS5

(2) Lianhe Zaobao, March 20, 2023
https://www.kzaobao.com/guping/20230320/135497.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

Beijing Interfered in the Canadian 2022 Local Election

The Canadian Security Intelligence Service (CSIS) reported that, last year, China’s Vancouver Consulate interfered in the election of Vancouver’s mayor and the election of its city council .

A CSIS report on January 10, 2022, summarized that Tong Xiaoling, then China’s Consul-General, discussed how to “groom” the Chinese diasporas to get political positions in order to advance Beijing’s interests. In the middle of November 2021, Tong said they needed to try all of their efforts to increase the minority’s vote ratio. She stressed this was necessary because candidates would rely on those votes (to be elected). Tong also expressed that they needed to get a specific person (Tong had her eyes on who to select, but the CSIS report didn’t disclose his name) to enter the Vancouver city council.

It appeared that the CCP had also interfered in the election of Vancouver’s mayor. After the Chinese Communist Party (CCP) sanctioned Member of Parliament Michael Chong for criticizing Beijing, then Vancouver mayor Kennedy Stewart cancelled his meeting with the CCP diplomats and strengthened ties with Taiwan. Both Tong and the Chinese language media criticized Kennedy. Some Chinese language media called him the “Cold War Mayor.” In the  election for mayor, Kennedy lost to Chinese diaspora candidate Ken Sim by a small margin – 37,000 votes.

Source: Epoch Times, March 16, 2023
https://www.epochtimes.com/gb/23/3/16/n13951845.htm

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

Ecuador’s Former President Accused of Accepting the CCP’s Bribes

Lenin Moreno, who was the President of Ecuador until he was succeeded by the incumbent on May 24, 2021,  was sued by prosecutors on March 5 for accepting bribes amounting to US $76 million from China’s state-owned enterprise Sinohydro between 2009 and 2018. The government of Ecuador contracted Sinohydro to build the Coca Codo Sinclair Dam under China’s “Belt & Road Initiative.” Construction started in 2010 and the dam was put in use in 2016. However, by 2018, 7,648 large and small cracks had been identified on the dam’s wall.

Source: Aboluo, March 8, 2023
https://www.aboluowang.com/2023/0308/1875096.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

European Media Expose “Loyalty Contracts” for Chinese Students Studying Abroad

A joint investigation by Deutsche Welle and the German media outlet CORRECTIV reported that Chinese students studying in Germany are being closely monitored by the Chinese authorities. Those who receive scholarships from the China Scholarship Council (CSC) are required to sign an agreement and report to the Chinese embassy. Those who violate the agreement will be punished. According to the report, several German universities have already established cooperation with the CSC, and one Chinese student who signed the agreement said he was afraid to participate in demonstrations in Germany, while other Chinese students also expressed fear of surveillance by the Chinese authorities.

The China Scholarship Council is a unit directly under the administration of the Chinese Ministry of Education and is responsible for organizing, funding and managing Chinese citizens studying abroad and foreign citizens studying in China. The majority of Chinese students currently studying abroad with government support are receiving  scholarships provided by the CSC, which covers the study and living expenses of Chinese students admitted to overseas universities. Overseas institutions that cooperate with the CSC accept Chinese students with government scholarships, and all costs are covered by the Chinese side, without taking away from the foreign school’s own research funds. Therefore, this kind of cooperation is welcomed by overseas institutions, and some of them even provide special quotas for Chinese students with government scholarships. In recent years, the students with government scholarships have tended to be in the fields of science and technology, and some European institutions have found that some Chinese students have military backgrounds, which has increased the suspicion that European countries have toward Chinese students.

Besides Germany, countries such as Sweden have also discovered agreements between Chinese students and the CSC, and some universities have even terminated their cooperation agreements with China as a result. The agreements signed between the students and the Chinese authorities mainly stipulate that the students must return to China to serve for two years after graduation, that the scholarship recipients must have two Chinese citizens as guarantors, that the guarantors who are permanent residents of China should take a single trip abroad not exceeding three months, and that the spouse should not act as a guarantor. If the scholar violates the agreement, the guarantors are jointly and severally liable.

The agreement also stipulates that, during the period of study, the signatory “shall not engage in any activities detrimental to the interests and security of the motherland,” “shall obey the guidance and management of the embassy or consulate abroad during the period of study,” and “shall report regularly on the progress of study and research.” The agreement is not terminated until the signatory returns to China after two years of service.

The agreement requires the scholar not to interrupt his or her studies without cause, or the sponsor, who lives in China, will be liable for the compensation. The agreement came to light earlier this year when a Chinese student at Lund University in Sweden was advised to discontinue his studies due to poor academic performance. The student was concerned that discontinuing his studies would cause his family trouble because of the agreement he had signed with the Chinese authorities. Following reports in the Swedish media, leading universities such as Lund University and Uppsala University in Sweden said that, following reports in the Swedish media, in the future they would stop cooperating with the CSC.

Source: Voice of America, March 18, 2023
https://www.voachinese.com/a/agreement-of-loyalty-exposed-20230318/7011347.html

Briefings | | |   Geo-Strategic Trend

TikTok Faced Bans in Britain, Belgium, Demark and New Zealand

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that British cabinet minister Oliver Dowden announced in the House of Commons that the British government will ban government staff from using the Chinese app TikTok on official mobile phones. The ban then took effect immediately. The UK’s move is in line with the U.S. and the European Commission, marking a “180-degree shift” in the UK’s previous position.

Earlier, United Daily News (UDN), one of the primary Taiwanese news groups, also reported that the Belgian Prime Minister said on March 10, because of concerns about online security, privacy and disinformation, that, for at least six months, Belgium will temporarily ban the use of TikTok on devices owned or paid for by the Belgian federal government. In the meantime, the Danish public broadcaster and TV station Danish Broadcasting Corporation (DR) advised employees not to use TikTok on business mobile phones due to security concerns. This is the first news organization to issue such an advice.

In addition, the New Zealand Chinese online news site Solace Media also reported that Rafael Gonzalez-Montero, chief executive of Parliamentary Services, said that, following the advice from cybersecurity experts, Parliamentary Services have informed Members of Parliament and staff that TikTok should be removed from all devices that have access to Parliament’s network.

Sources:
(1) Sina, March 16, 2023
https://k.sina.com.cn/article_1686546714_6486a91a02001unh8.html?from=news&subch=onews
(2) UDN, March 10, 2023
https://udn.com/news/story/7332/7024437?from=udn-relatednews_ch2
(3) Solace Media, March 17, 2023
https://bit.ly/42jEnPB

Briefings | | |   Geo-Strategic Trend Information/Technology