Geo-Strategic Trend - 9. page

China Business Network (CBN) recently reported that, Indonesian Trade Minister Zulkifli Hasan said not long ago that Indonesia will impose safeguard tariffs of 100 percent to 200 percent on imported products ranging from footwear to ceramics and restart plans to protect domestic industries. This new tariff policy will take effect after the relevant regulations are finalized, and may also affect the import of clothing, textiles, and cosmetics. According to data from Statistics Indonesia, Indonesia mainly imports clothing and clothing accessories from China, Vietnam and Bangladesh. The Indonesian government said that it would first launch two protective measures for textiles and textile products, namely the safeguard import tax (BMTP) and the anti-dumping import tariff (BMAD), to protect the local industry from the surge in imported textiles.

Multiple Chinese import/export businesses commented that, if high tariffs are imposed, it will obviously slow down the trend of purchasing directly from Chinese export companies. Indonesia has recently revealed that one of the main reasons to have additional safeguard tariffs is to keep the American orders for domestic companies. Nowadays more and more Chinese companies have begun to build factories locally in Indonesia. Analysts expressed the belief that, with the global reorganization of supply chains, Chinese companies going overseas is an increasingly important trend. For Chinese entrepreneurs, on one hand, they need the courage to go out, and on the other hand, they need the necessary new knowledge and skillsets.

Source: CBN, July 1, 2024
https://m.yicai.com/news/102173785.html

Radio France Internationale (RFI) Chinese Edition recently reported that, the German government banned the sale of Volkswagen’s gas turbine business to Chinese companies, citing national security concerns. The deal failed due to the German cabinet approved the ban proposed by the Economics Ministry. The reason is that the potential buyer’s parent company, China State Shipbuilding Corporation (Group), has too close ties with China’s military. Therefore, sales are not allowed under the Foreign Trade Act, which allows the government to ban sales to non-EU countries if it could endanger national security. Volkswagen’s MAN Energy Solutions said it would not seek a new buyer but would stop developing new gas turbines and limit its services to only maintenance.

According to anonymous Chinese sources, the potential buyer – CSICL (China Shipbuilding Industry Company Limited) Longjiang Guanghan Gas Turbine Co. – is part of China State Shipbuilding Corporation’s 703rd Research Institute. Both are Chinese defense suppliers. The 703rd Research Institute is also included in the U.S. list of untrustworthy entities. China wants to modernize its largest Naval fleet in the world. In the future, it could run on gas turbines instead of diesel engines.

Source: RFI Chinese, July 3, 2024
https://tinyurl.com/5ddec9zt

On July 1, 2024, China implemented new regulations clarifying law enforcement procedures for its Anti-Espionage Law, which was revised a year ago. The new rules grant national security agencies permission to inspect smartphones and other electronic devices.

The revised Anti-Espionage Law, effective since July 2023, broadened the definition of espionage and allows for the investigation of activities related to “national security and interests.” Under suspicion of espionage, authorities can examine personal belongings and electronic devices.

China has detained at least 17 Japanese citizens since 2014 under this law, with 5 still in custody. In March 2023, a male executive from Astellas Pharma’s Chinese subsidiary was detained and later arrested in October.

Local governments are also strengthening anti-espionage efforts. Several provinces and municipalities held national security meetings in May and June 2024, focusing on preventing infiltration by hostile forces and enhancing surveillance using big data.

The education sector is increasing anti-espionage propaganda, with national security staff visiting schools to discuss security issues, including risks associated with advanced technologies like AI.

China’s revised law requires citizens to report suspected espionage activities and offers rewards for significant contributions, with some individuals receiving over 100,000 yuan. The country is establishing a mechanism for citizens to expose and report espionage activities.

Source: Nikkei Chinese, July 1, 2024
https://zh.cn.nikkei.com/china/cpolicssociety/56013-2024-07-01-10-52-20.html

Recent attacks on American and Japanese citizens in Jilin and Suzhou have sparked heated discussions on Chinese social media platforms. The Suzhou incident, which resulted in the death of a Chinese national, led to a surge in anti-Japanese sentiment.

Chinese social media platforms have begun intervening to curb nationalist rhetoric. Some commentators believe the Suzhou incident could have far-reaching effects on China’s economy and foreign investment.

The attack in Suzhou, where a Japanese mother and child were assaulted, resulted in the death of a Chinese bus attendant who tried to prevent the attack. Online discussions following the incident ranged from praising the attacker as a national hero to questioning the loyalty of the deceased attendant.

Former Chinese media professional Zhao Lanjian noted a proliferation of anti-Japanese videos online, many created by young people openly expressing radical views. He suggested these groups might be organized and tacitly approved by authorities.

In response to the controversy, major Chinese social media platforms like Tencent, Douyin, NetEase, and Baidu have taken steps to moderate extreme content and suspend accounts promoting xenophobia.

Political scholar Wu Zuolai observed that nationalism has long been used by Chinese authorities to garner public support and divert attention from social issues. He noted that the recent escalation in anti-Japanese sentiment could have serious economic consequences, potentially affecting foreign investment and job opportunities in China.

The Chinese government has expressed regret over the Suzhou incident and pledged to protect foreigners in China, but some Japanese media outlets have criticized the response as inadequate.

Source: Voice of America, July 2, 2024
https://www.voachinese.com/a/china-cracks-down-on-online-anti-japan-comments-20240702/7682219.html

North Korea has switched from using Chinese satellites to Russian satellites for broadcasting its state television programs, according to South Korea’s Unification Ministry. This change has disrupted South Korea’s ability to receive North Korean signals in some areas.

The move comes as North Korea and Russia strengthen their ties. Recently, Russian President Putin visited Pyongyang and signed agreements with Kim Jong-un, including promises of military aid in case of attack.

While South Korean public is legally banned from watching North Korean media, officials and journalists need access to monitor North Korean communications and propaganda.

The US and its allies accuse North Korea of supplying ammunition and missiles for Russia’s war in Ukraine. The recent summit between Kim and Putin has raised concerns about increased material exchanges between the two countries.

Experts suggest this satellite switch could be an experiment to enhance North Korea’s space capabilities, possibly leading to future development of commercial satellites with Russian support. It may also help North Korea block South Korean cultural content from reaching its people through Chinese satellite frequencies.

The change in satellites also indicates that Pyongyang is strengthening its relationship with Moscow, potentially surpassing its traditional alliance with Beijing. This shift might prompt China to increase diplomatic pressure on North Korea.

Source: Deutsche Welle, July 2, 2024
https://p.dw.com/p/4hmdk