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India Is Coming up with New Trade Barriers for China

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, according to two anonymous Indian government officials and one industrial official, India will soon ask domestic importers to register. The purpose is to protect domestic manufacturers. The next step will be to impose import restrictions on copper and aluminum so that the government must approve all import contracts. India buys a large amount of copper and aluminum from China. The up-coming plan also includes the implementation of Prime Minister Modi’s strategy to reduce imports and to increase India’s exports of high value-added products. The registration requirement is also designed to track more accurately and to understand the level of metal dumping into the Indian market. The Indian Ministry of Mines and the Ministry of Commerce refused to comment on this matter. India has been creating new anti-China trade policies recently, such as the ban on hundreds of Chinese mobile apps. The Chinese Ministry of Commerce expressed the opinion that India has been violating the legal rights of both Chinese investors and the Indian consumers.

Source: Sina, September 10, 2020
https://dailynews.sina.com/gb/international/phoenixtv/2020-09-10/doc-ifzzxynp3771513.shtml

China-Argentina ‘Pig Deal’ Sparks Protests

Argentina’s citizens, including environmental and animal rights groups, are protesting a pork investment and export deal with China, a $3.5 billion agreement that makes Argentina the largest pork supplier for China. More than 200,000 people also signed an online petition to oppose the plan. As a result of the public pressure, the Argentine authorities have postponed signing the memorandum of understanding with China.

Activists accused the authorities of causing ecological damage. In the Atlantic coastal city of Mar del Plata, Juliet Paladino, a member of the environmental organization, told local media that Argentina does not have enough grain to feed the pigs. “This will mean more land to grow genetically modified corn, the destruction of wetlands and a number of protected areas. This agreement will destroy us.”

A press release that the Argentine Ministry of Foreign Affairs issued on July 6 mentioned the goal of an increase in the country’s pig production of 9 million tons in four years, 14 times the current output of 630,000 tons in 2019. China plans to invest US$3.5 billion within two to three years and build 25 local farms. Each will raise 12,000 pigs. The entire industrial chain includes fodder production plants, waste treatment and conversion tanks, slaughterhouses, and packaging and export factories.

Biologist Guillermo Folguera at the University of Buenos Aires (Universidad de Buenos Aires) told the BBC that such projects are likely to lead to (more of) “the zoonotic diseases we are currently experiencing.” He explained that intensively raised animals and the large number of chemicals and antibiotics may bring considerable risks. To a large extent, it is because of the outbreak of African swine fever that China has “outsourced” this risk to other countries.

China is the world’s largest producer and consumer of pigs. The number of live pigs once exceeded 440 million, almost half of the global stock. However, since 2018, the sudden outbreak of African swine fever has forced China to cull millions of pigs. Many farmers have stopped raising pigs, and China’s pork production has fallen by more than half.

Professor Folguera added that similar cases in countries such as Chile, Mexico and Spain show that such giant factories will lead to serious pollution of air, water and land. The pollutants include ammonia, nitrite, nitrate and antibiotics.

Argentine environmental writer Soledad Barruti worries about water consumption, as 6000 liters of water are needed to produce a kilogram of pork. “We not only export meat, but also millions of liters of water, but no one pays for it. Another problem is the waste and toxins produced by millions of animals.”

For years, China has been Argentina’s largest market for agricultural product and beef exports. In 2019, Argentina exported more than 630,000 tons of beef to China, accounting for three-quarters of its total beef exports. The cooperation between the two countries goes beyond agriculture. In April, China replaced Brazil and became Argentina’s largest trading partner. As early as 2014, when China proposed the “Belt and Road” initiative, then Argentine President Cristina Fernández de Kirchner already set her sights on the East after the government defaulted on US$100 billion of international debt. The two sides quickly finalized a number of projects involving cooperation, such as railways and nuclear power plants.

After Mauricio Macri, who tends to be conservative, came to power, he stopped or began to review a number of Chinese-funded projects. The relationship between the two countries temporarily cooled down.

When Alberto Fernández was elected President last year, the Argentine government restarted the Patagonia dam project. In July, he approved China’s space station project in Neuquén, South Argentina, an agreement reached with Christina Fernandez in 2014. Not long ago, a well-known local media Revista News (Revista News) used “ArgenChina” on the cover to describe the close relationship between the two countries. The background is a picture where President Alberto Fernandez wears a Chinese style bamboo hat.

Source: BBC Chinese, September 4, 2020
https://www.bbc.com/zhongwen/simp/world-54008386

Google and Facebook Gave Up on Hong Kong Submarine Cable Plan

Well-known Chinese news site Sohu (NASDAQ: SOHU) recently reported that the Google and Facebook joint venture plan of laying new submarine cable now officially dropped the U.S.-to-Hong Kong segment. The two quickly adjusted and submitted a new plan to connect with the Philippines and Taiwan. The adjusted pacific fiber cable plan eliminated the earlier partner named Pacific Optical Data Communications, headquartered in Hong Kong. The move was in response to the objection from multiple U.S. government organizations, including the FCC and the Justice Department, as well as several U.S. national security agencies. In April, Google obtained a six-month temporary permit to proceed. The new plan is the official amendment to the original application. The FCC confirmed the national security concerns. Google validated the report and ensured the public that the application is going through the proper channels for final approval. A Facebook representative encouraged people to check the official FCC filing information for more details.

Source: Sohu, August 30, 2020
https://www.sohu.com/a/415573819_99956743

EU’s New Strategy on ‘Critical Raw Materials’

As the Wuhan pneumonia epidemic has highlighted the global dependence on electronic products and technologies required for remote work and teaching, the European Union (EU) has become worried that, in the production of smartphones and related products, it will increasingly have to rely on raw materials that other countries supply. The EU recently proposed a new strategy to reduce its dependence on China, Chile, South Africa and other countries through the establishment of the “European Raw Materials Alliance.”

On September 4, 2020, Vice President of the European Commission Maros Sefcovic pointed out that 75 to 100 percent of the majority of the metals that the EU uses come from countries outside of the European Union, and China provides 98 percent of its rare earth supply. The EU realized that it is necessary to reduce risks in the supply of critical raw materials during the era of green and digital transformation. Critical raw materials have increased from 27 in 2017 to 30 in 2020. The reason for the EU to regard these materials as “critical” is mainly that there is either an insufficient supply or the concentration lies in a handful of suppliers.

In addition, Turkey supplies 98 percent of the borate that the EU consumes; 68 percent of the cobalt comes from the Democratic Republic of the Congo. Chile supplies 78 percent of lithium, and South Africa supplies 71 percent of the platinum.

“We have to change our approach drastically,” said Sefcovic. He added, “We are largely dependent on unsustainable raw materials from countries with much lower environmental and social standards, less freedom and poor, unsustainable economies.”

By 2050, the EU will need around 60 times more lithium, essential for e-mobility, and 15 times more cobalt, which is used in electric car batteries. Therefore, the EU must accelerate its independence in the supply of raw materials. “We need to make better use of the resources within the European Union, where we would apply the highest environmental and social standards,” Sefcovic said.

The EU’s new strategy is to establish the “European Raw Materials Alliance,” consisting of industry stake holders, investors, the European Investment Bank, and member states to ensure the supply chain of mineral raw materials. Supply diversification also requires partnerships. Starting next year, the European Commission hopes to start partnerships with Canada, Australia, and interested African countries.

Source: Radio Free Asia, September 4, 2020
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/cl-09042020125542.html

China Agreed to Restructure Low Income Countries’ Debts

China has recently reached agreements with a number of low-income countries that applied for debt restructuring to assist these countries in fighting the epidemic. Analyses show that China holds the large debts of many low-income countries. Therefore, this agreement is significant.

The Financial Times reported that China’s Ministry of Foreign Affairs stated that China has reached an agreement with half of the 20 low-income countries that have requested debt restructuring. The Debt Service Suspension Initiative (DSSI) of G20 countries leads the negotiation framework for this agreement.

The DSSI was launched in April this year to help some low-income countries to focus on responding to the health and economic crisis that the COVID-19 epidemic caused. Eligible countries can freeze the repayment of bilateral loans until the end of this year. This is the first time that China has participated in a multilateral debt relief initiative. The agreement between China and Angola is critical.

In the past 20 years, among the African countries, Angola has been the largest recipient of loans from China, receiving about one third of China’s total loans to the continent. According to data from the World Bank, Angola’s loan payable of approximately US$2.6 billion may be suspended in 2020, accounting for 3.1 percent of the country’s gross domestic product (GDP). The Central Bank of Angola said that the country’s total outstanding external government debt approximates US$49 billion, of which China is owed 45 percent.

As the COVID-19 disease has caused severe damage to developing countries, more countries may request debt restructuring in the future. Redd Intelligence’s senior analyst Mark Bohlund said that, under the DSSI framework, “much of the burden falls primarily on China.”

Analysts pointed out that tracking the progress of DSSI negotiations in the past has not been easy. In particular, it is because China provides a large proportion of the loans and often does not fully disclose information. At present, China’s state-owned export credit agency, the Export-Import Bank of China, has issued most of China’s loans, but some also come from the state-owned China Development Bank.

Source: Central News Agency, September 2, 2020
https://www.cna.com.tw/news/acn/202009020167.aspx

Lianhe Zaobao: China Warned Norway: Don’t Award Nobel Prize to Hong Kong Residents

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that Chinese Foreign Minister Wang Yi commented in a joint press conference with Norwegian Minister of Foreign Affairs Ine Eriksen Søreide that China made it clear that it would not like to see the politicization of the Nobel Prize. There have been Norwegian lawmakers as well as U.S. congressmen who nominated Hong Kong Residents as the Nobel Peace Prize candidate. Although the Nobel Prize Committee is independent from the Norwegian government, yet its decisions may still impact the government’s relationship with China. Wang Yi’s recent visit was the first time a Chinese Foreign Minister visited in 15 years. Wang urged the Norwegian government to “cherish” the opportunity to have a “healthy” relationship and promised more “openness” from China.

Source: Lianhe Zaobao, August 29, 2020
http://www.uzaobao.com/cngov/2020-08/2977148.html

SETN: Indian Government Is Silently Removing Huawei

Sanlih, one of the primary Taiwanese TV stations, recently reported that, with the worsening of the China-India relationship, the movement inside the Indian government to eliminate Huawei’s presence in India has been expanding quietly. Although India has not officially announced a ban on Huawei and ZTE, yet multiple central government ministers have been telling the Indian domestic telecommunications companies to avoid deploying equipment made in China, including 5G network equipment. A high-ranking executive from India’s top communications service provider said the government has already blocked all Chinese bidders from having access to India’s 5G network tests. “It’s now very clear – it’s game over,” said this anonymous source. India is the world’s second largest mobile telecommunications market, with 850 million users. Huawei was established as a major supplier for all three of India’s top telecommunications providers. If the government were to ban Huawei, it would be a massive setback for Huawei. Another government source suggested that India may not issue an official ban to avoid angering China; however, the Modi administration has been “on high alert.”

Source: SETN, August 25, 2020
https://www.setn.com/News.aspx?NewsID=802871

China Owned International Academic Journal Imposes Political Censorship

Wu Ruoxuan, a Doctor from Taiwan, was shocked to learn from the editor of Eye and Vision, a medical journal that Springer Nature publishes, that in accordance with the relevant Chinese policies of the journal and the Springer Nature Group, she must use “Taiwan, China” as her nationality; otherwise her paper would not be published. After Wu posted her story on social media, it drew criticism on the issue of political censorship in the academic journal industry.

In the written correspondence that Radio Free Asia obtained from Springer Nature, it stated that, for journals that they own, the author can decide how they wish to present their academic affiliations. However, since Eye and Vision is a journal that the Eye Hospital of Wenzhou Medical University in China owns, it must comply with a “different set of regulations.” With its headquarter in London, Springer Nature is the world’s largest academic publisher. It owns more than 3,000 journals including Nature and Scientific American. In November 2017, Springer Nature was also condemned for cooperating with its Chinese partners and blocking at least several hundred articles on Taiwan, Tibet, human rights, and politics from its Chinese website.

According to the website of the Eye Hospital of Wenzhou Medical University, Eye and Vision is an international English journal sponsored by the Wenzhou Medical University. It was launched in October 2014. Qu Jia, the director of the Eye Optometry Hospital is the chief editor. The journal was set up under China’s initiative to “improve the international influence of China’s Science and Technology Journal” which is a plan backed by the Chinese Association for Science and Technology, the Ministry of Finance, the Ministry of Education, the State Administration of Press, Publication, Radio, Film and Television, the Chinese Academy of Sciences, and the Chinese Academy of Engineering. The goal is to “open a channel to improve the globalization of journals in the Chinese scientific research community.”

It has become a new trend for China to start publishing journals on its own, to cooperate with foreign publishers, or to acquire foreign publishers directly. “Chinese technology and culture going global” is a phrase that the official Chinese media have often used. In 2019, the Chinese Academy of Sciences Holding Company acquired the French EDP Sciences publishing house founded by famous scientists, including Madame Curie. Xinhua reported at the time that this was an important step for China Science and Technology to implement its globalization strategy.

Source: Radio Free Asia, August 26, 2020
https://www.rfa.org/mandarin/yataibaodao/gangtai/jt-08262020113515.html