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Geo-Strategic Trend - 46. page

China Researcher: How Did China Beat the Western Countries in African Investment?

Guancha (The Observer) website is a media in China with a focus on international affairs. It published an interview with Ms. He Wenping, a researcher at the Institute of West Asia and Africa, Chinese Academy of Social Sciences (CASS), on the differences between China and the Western countries in their investments in Africa.

Ms. He said Africa has three shortcomings: poor infrastructure, lack of skilled people, and lack of money. China’s investments are focusing on these things, such as infrastructure projects and training local people. This includes the Luban Workshop – a number of vocational education classes – and industrial parks at local sites.

Regarding the Western countries’ saying that China is creating a “debt trap” in Africa, Ms. He said it was because they control the discourse power. China is making improvements with CGTN (a state-run English-language news channel based in Beijing) to have its own voice heard. CGTN’s programs are on YouTube and Tweeter and follow the international reporting standard. CGTN’s London station, U.S. station, and Africa station have local people as hosts and reporters. For example, the Africa station at Nairobi, Kenya’s capital city, has an “Africa Live” program with an African anchor and African reporters who go to hot spots to interview people every day. Thus some African scholars are following it every day.

Regarding differences between the West’s and China’s investment in Africa , Ms. He said that the West is telling the African countries what to do while China just treats them as partners. The West’s investments have strings attached but China’s do not. Biden held his U.S.-Africa summit in Washington, DC, while China always has its summit in Africa.

Source: Guancha, January 16, 2023
https://www.guancha.cn/HeWenPing/2023_01_16_676060.shtml

Following the U.S., the Netherlands and Japan to Take Action on Chinese Chip Industry

Popular Chinese online news site Redian recently republished a Bloomberg report indicating that the Netherlands and Japan, home to major suppliers of semiconductor manufacturing equipment, are about to join a Biden administration-led effort to limit exports of the technology to China. Export controls in the Netherlands and Japan could be finalized as soon as late January, according to people familiar with the matter. Japanese Prime Minister Fumio Kishida and Dutch Prime Minister Mark Rutte discussed their plans with U.S. President Joe Biden at the White House earlier this month. “I am very confident that we will get there,” Rutte told Bloomberg in an interview on the sidelines of the World Economic Forum in Davos, Switzerland. However, the Netherlands and Japan’s restrictions may not go as far as the U.S. restrictions do, which not only limit the export of U.S.-made machines but also prevent U.S. citizens from working with Chinese chipmakers. Even so, once all three countries take action, China may find itself even less able to acquire the technology or expertise needed to manufacture the most advanced semiconductors. A spokesperson for the White House National Security Council declined to comment. The U.S. Commerce Department rules are opposed by some U.S. semiconductor companies but supported by bipartisan lawmakers. China said Biden’s new chip tech curbs will hurt its economic recovery.

Source: Redian, January 19, 2023
https://redian.news/wxnews/231251

China Signed a 25-Year Deal with Afghanistan in Oil Exploration

With the departure of the U.S. invaders, the Afghan people did not live the life they expected, and were still struggling under the poverty line. The Taliban government in Afghanistan has been in power for more than a year. The results have proved that it is basically impossible to rely solely on the power of Taliban to save the Afghan economy. Looking at the whole world, it can be said that there are very few countries that are able and willing to provide assistance to Afghanistan in terms of economic construction. Atta can only focus on the big eastern countries.

China Central Asia Petroleum and Natural Gas Co., Ltd. signed a 25-year oil exploration contract with the Afghan Taliban government. According to the contract, the Chinese company and the Afghan government will jointly explore oil in the Amu Darya Basin in northern Afghanistan, where the oil reserves are estimated to exceed 80 million barrels. Chinese companies have been approved to carry out mining operations in an area of 4,500 square kilometers across the three provinces of Sar Pul, Jowzjan, and Faryab. The daily oil production will be 1,000 tons in the initial stage, and will gradually increase to 20,000 tons later. It is reported that the Chinese company in charge of the cooperation project will invest a maximum of US$150 million per year in the first three years, and will increase to US$540 million per year after three years. If the 25-year contract period is successfully fulfilled, the cumulative investment of the Chinese side will exceed US$12 billion.

Source: qq.com, January 6, 2023

https://view.inews.qq.com/a/20230106A0633500?tbkt=G&uid=&refer=wx_hot

Global Times: TSMC Considering Building a Second Factory in Japan

Global Times recently reported that the Japanese government actively invited TSMC (Taiwan Semiconductor Manufacturing Company) to expand its manufacturing capacity in Japan and introduce EUV process. The TSMC CEO confirmed for the first time at a press conference that TSMC is indeed considering building a second factory in Japan. TSMC is currently building a fab with special process technology in Japan, which will use 12/16nm and 22/28nm process technology, and plans to enter mass production by the end of 2024. Though the first factory is still under construction, TSMC plans to build a second fab at the same time, as long as customer demand and the level of government support make sense. According to previous Japanese media reports, TSMC’s first factory is being constructed in Kumamoto Prefecture, Japan. The Japanese government had previously decided to subsidize nearly half of the 1 trillion yen investment required by TSMC to build the factory. In response to foreign government invitations, TSMC is promoting the construction of factories overseas. In last December, TSMC announced that it would increase its planned investment of US$12 billion to US$40 to build two factories in Phoenix, Arizona. 4nm and 3nm chips will be put into production in 2024 and 2026. That represents TSMC’s largest investment outside of Taiwan and one of the largest foreign direct investments in U.S. history.

Source: Global Times, January 12, 2023
https://world.huanqiu.com/article/4BG6VCqka5b

Sing Tao: Uganda Cancelled Railway Contract with China

Primary Hong Kong news media Sing Tao News Group recently reported that, due to dissatisfaction with China’s reluctance to finance the project, the Ugandan government has terminated its contract with a Chinese company to build a railway in the local area. Uganda is seeking a Turkish company to take over. Ugandan officials in charge of coordinating the project confirmed the news. According to the contract, one of the conditions is that China is obliged to assist Uganda in obtaining financing for the project, but this has not happened. The Ugandan authorities sent a letter to China Harbor Engineering (HEC) to terminate the contract in December 2022. HEC has not raised any objections so far. This 273-kilometer railway connects Uganda’s capital, Kampala, and the border with Kenya. In order to connect with the international standard-gauge railway leading to Mombasa, Kenya’s Indian Ocean port, the new railway construction plan also adopts the international standard gauge. The entire project is estimated to cost US$2.2 billion. The Chinese spokesperson of the Foreign Affairs Ministry said China and Uganda have established a comprehensive cooperative partnership and that the pragmatic cooperation between the two countries is at the forefront of China-Africa cooperation.

Source: Sing Tao, January 14, 2023
https://bit.ly/3INEVpF

Beijing Is Working on Vietnam, Indonesia, and the Philippines

Since the Communist Party’s 20th National Party Congress, Beijing has been adopting a “divide-and-conquer” strategy in its foreign policy with the Southeastern countries. It does not like multilateral relationships (China is likely to be against working with a group of countries), but prefers bilateralism (China has a bigger advantage in a one-on-one relationship) instead. Using its economic power. China has already captured Cambodia and Laos and is now working on Vietnam, the Philippines, and Indonesia.

Take Vietnam as an example. Sino-Vietnam trade increased 10 percent in the first nine months of this year, from the same period a year ago. Imports from China counted for 70 percent of Vietnam’s total imports.

Beijing invited Nguyen Phu Trong, General Secretary of Vietnam’s Communist Party, to visit China at the end of October. He was the first foreign dignitary to visit China after the  closing of the 20th Party National Congress. Both sides issued a joint statement, including a plan to accelerate cooperation between China’s “Belt & Road Initiative” and Vietnam’s “Two Corridors and One Circle” framework.

Later, Indonesian President Jokowi greeted Xi Jinping at a bilateral meeting following the G20 Indonesia Summit in Bali. Jokowi called Xi “elder brother.”

President Marcos of the Philippines visited Beijing in January and the two countries signed over ten agreements under the “Belt & Road Initiative” framework.

Source: China News, January 5, 2023
https://news.creaders.net/china/2023/01/05/2564180.html

UDN: Sweden Wants to Join NATO, but not All Turkey’s Demands Can be Met

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that Swedish Prime Minister Ulf Kristersson said Sweden is confident Turkey will allow Sweden to join the NATO military alliance, but Sweden will not be able to meet all of Turkey’s demands in exchange. Whether NATO expands in size needs to receive unanimous approval from all member states. Kristersson said that Turkey confirmed that Sweden did what Sweden promised, but Turkey also made clear that it wanted what Sweden couldn’t or didn’t want to do for it. Sweden, Finland and Turkey signed a tripartite agreement last year that is expected to end Turkey’s opposition to the two countries joining NATO. Sweden and Finland have long maintained close ties with Western militaries but have been reluctant to join military alliances for fear of angering Russia. However, Russia’s invasion of Ukraine last February prompted a change in attitude in Sweden and Finland. Turkey had previously used the support for Finland and Sweden to join NATO as leverage, demanding that the two countries take a tougher stance against Kurdish militias that Turkey considers terrorists.

Source: UDN, January 8, 2023
https://udn.com/news/story/6809/6896295

CNA: U.S. and Japan Plan to Cooperate in Developing Semiconductor Talents

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, with China’s significantly enhanced military strength, and in view of the rising security tensions with China, the governments of the United States and Japan are planning to cooperate to develop advanced semiconductor technology talents, with the hope of playing a leading role in the global semiconductor market. The governments are scheduled to hold a discussion in Washington in January at the U.S.-Japan Summit and Ministerial Talks to confirm the cooperative relationship. Discussions of the specifics to strengthen the talent development plan are set to kick off in the coming spring. At present, it is the most feasible plan for the United States and Japan to send researchers or students to research institutions or high-tech companies. The scope of enhanced cooperation will include new generation technologies such as artificial intelligence (AI) and supercomputers. The U.S. and Japan reached a consensus on the principles of semiconductor cooperation in May 2022. That includes promoting the diversification of semiconductor manufacturing capabilities. The two sides have their own strengths in semiconductor technology and will cooperate to complement each other. Japan’s Ministry of Economy, Trade and Industry established the Leading-edge Semiconductor Technology Center (LSTC) in December 2022. The United States is scheduled to establish the National Semiconductor Research Center under NSTC in February 2023. The two countries will strengthen the exchange of semiconductor talents, the practical application of research results, and the mass production of new-generation semiconductor technologies.

Source: CNA, December 29, 2022
https://www.cna.com.tw/news/aopl/202212290373.aspx