Geo-Strategic Trend - 8. page

Guangming Daily published an article commenting that the Global South countries have been playing an increasing role in reshaping the world order. The following are some highlights from the article:

“The 3rd Summit of the Group of 77 and China concluded on January 22, 2024, in Kampala, Uganda, drawing attention to the Global South’s efforts in reforming the international order. … The concept of the “global South” has gained prominence, impacting global politics, economics, and culture significantly.”

“Firstly, the rise of the Global South has shifted the global power structure,” with the BRICS representing Southern countries “becoming an influential force on the international stage. … Secondly, it has diversified global development patterns. … Thirdly, it has introduced cultural and ideological diversity.”

“Southern countries are increasingly striving for a leading role in international affairs through participation in international organizations and advocating multilateralism, aiming to ensure international rules better reflect global diversity and interests. The 2023 Summit of the Group of 77 and China adopted the Havana Declaration, advocating for increased representation of developing countries in global decision-making bodies and promoting a more inclusive and coordinated global economic governance framework. China’s efforts in building a community with a shared future for humanity were reflected in the Declaration, highlighting China’s role in reshaping the international order.”

“China’s extensive diplomacy and cooperation with Southern countries, including aid to over 160 countries, the Belt and Road Initiative with over 150 countries, and various multilateral platforms such as the China-ASEAN Cooperation Mechanism, the Forum on China-Africa Cooperation, the China-CELAC Forum, and the China-Arab States Forum” demonstrate its commitment to South-South cooperation and to the elevation of the Global South’s role in reforming international order.

Source: Guangming Daily, January 29, 2024
https://news.gmw.cn/2024-01/29/content_37116113.htm

German chemical company BASF announced on February 9th that it will withdraw its stake from two joint ventures in Xinjiang, China after human rights groups accused its local partners of participating in the crackdown on ethnic minorities. The two joint ventures are Xinjiang Markor Chemical and Markor Meiou Chemical. BASF says it initiated the sale in late 2023 for other reasons but will now accelerate the process, subject to local approval.

In its statement, BASF said recent allegations indicate the joint ventures were engaged in activities inconsistent with BASF’s values. The two ventures employ about 120 people locally, with BASF holding roughly half the shares. Markor Chemicals produces butanediol, used to make fibers, plastics and rubber.

Last week, reports revealed Markor and its employees were directly involved in surveillance and repression of Uyghurs by the Communist Party, leading to arrests. BASF said it was unaware and does not condone such actions, emphasizing they only involve its partners, not BASF itself.

Human rights groups have long accused China of systematically cracking down on Uyghurs in Xinjiang by sending over a million to detention camps for “re-education.” Beijing denies this, claiming it is combating extremism.

Several Western companies like Volkswagen operate in Xinjiang. VW recently said a third-party investigation found no evidence its factories use forced labor after facing such allegations.

BASF stated that despite withdrawing from Xinjiang, its other China businesses will continue normally. It is spending $10 billion on a new production base in Guangdong province. The company says it remains fully committed to its investments in China.

Source: Deutsche Welle, February 10, 2024
https://p.dw.com/p/4cFeL

Japan’s Kyodo News reported that in 2020 China conducted a cyberattack on the Japanese Ministry of Foreign Affairs’ system for exchanging diplomatic messages with foreign embassies, resulting in classified information being leaked. The messaging system, called the “International IPVPN,” operates on a virtual private network separate from the general internet. Leaks of confidential diplomatic communications are extremely rare.

At a press conference, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said he could not answer questions about the cyberattack due to information security issues. He also said that he was unaware of any classified information from Japan’s Ministry of Foreign Affairs having been leaked.

The compromised diplomatic messages include sensitive reports and instructions exchanged between the Ministry’s headquarters and embassies abroad. They may have also contained private information that Japan collected regarding foreign governments. The Japanese government has not disclosed the extent of the leak, the specific contents of the messages, or how the attack was discovered.

The hacking demonstrates the increasing importance of cyberspace as a theater for espionage and geopolitical confrontation. Japan’s diplomatic communications likely contain valuable intelligence for other countries seeking greater influence in the region. The Japanese government’s lack of transparency around the attack makes it difficult to assess the full implications of the incident, however. Going forward, Japan’s government plans to make a top priority of bolstering cybersecurity in its confidential diplomatic relations with strategic partners.

Source: Kyodo News, February 5, 2024
https://china.kyodonews.net/news/2024/02/5147b37c47db–.html

Nikkei Chinese Edition recently reported that, for the first time in four years, the United States surpassed China as the top destination for Japanese exports in 2023. The United States economy currently appears strong, and Japan’s exports to the United States are recovering in the aftermath of the COVID-19 pandemic. Meanwhile, the Chinese economy is struggling, and Japanese exports to China are sluggish.

The 2023 trade statistics report released by the Japanese Ministry of Finance showed that the country’s total exports were 100.8865 trillion yen (around US$681 billion), exceeding 100 trillion yen for the first time and representing an increase of 2.8 percent over the previous year. Total imports were valued at 110.1779 trillion yen (around US$743 billion), a decrease of 7 percent. Japan’s trade deficit was 54.3 percent smaller than in 2022. Exports to the United States were 20.2668 trillion yen (around US$137 billion), a year-over-year increase of 11 percent. Exports to the European Union were 10.374 trillion yen (around US$70 billion), an increase of 10.9 percent year-over-year. Japanese automobile exports to the U.S. grew 35.5 percent year-over-year, driving overall growth. A weaker yen helped exports too.

Japan’s exports to China were significantly affected by China’s economic slowdown, a major component of which is rooted in China’s current real estate market slump. China’s unemployment rate is high, and willingness to consume within the country has been weakened.

Despite strong year-over-year growth, Japan’s future exports to the United States still face many risks, including potential slowdown in the U.S. economy. Moreover, China’s economy could be slow to recover, leading to slow export growth for Japan and continued trade deficits.

Source: Nikkei Chinese, January 26, 2024
https://cn.nikkei.com/politicsaeconomy/investtrade/54664-2024-01-26-05-00-10.html