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Geo-Strategic Trend

CNA: EU Launches Investigation into Chinese E-Commerce Company Temu

Primary Taiwanese news agency Central News Agency (CNA) recently reported that the European Commission has announced it will investigate Temu, a subsidiary of Chinese e-commerce giant Pinduoduo, under the EU Digital Services Act. The online shopping platform is suspected of selling illegal goods and has designs that make consumers addicted. According to Temu’s declaration, as of September, there were 92 million monthly active users in the European Union, which complies with the definition of Very Large Online Platform (VLOP), which requires more stringent regulation.

The focus of the EU investigation is, first, whether the Temu system can effectively prevent illegal commodity transactions, including preventing the products of low-quality sellers that have been suspended from being relisted. The EU also wants to investigate whether Temu’s design to make users addictive, such as providing rewards in a game-like manner, and whether its system includes risk prevention measures to avoid the negative impact of addiction on users’ physical and mental health.

Temu’s cheap dumping strategy and inferior product quality have caused much controversy internationally. In addition to EU, the governments of the United States, South Korea, and Thailand have also announced that they will launch investigations.

Source: CNA, October 31, 2024
https://www.cna.com.tw/news/aopl/202410310305.aspx

Chinese Coast Guard Intensifies Patrols Near Taiwanese Kinmen Islands

Xinhua News Agency reported that the Fujian Coast Guard conducted “routine law enforcement patrols” in waters near the Kinmen Islands on October 30. It said that since the beginning of October, Fujian Coast Guard has organized ship formations to intensify patrols in the area, “further strengthening control over the relevant waters.” This effort is aimed at “effectively safeguarding the legitimate rights, interests, and safety of Chinese fishermen, including those from Taiwan, and ensuring the orderly navigation and operations in the Xiamen-Kinmen waters.”

According to Wikipedia, Kinmen is “a group of islands governed as a county by the Republic of China (Taiwan), only 10 km east” from mainland China’s Xiamen City, Fujian Province, and 187 km west of Taiwan island.

Sources:

Xinhua, October 30, 2024
http://www.news.cn/legal/20241030/1670d57f2aa94d4ca7f8f5f29d6ccd09/c.html

Wikipedia, Retrieved November 4, 2024
https://en.wikipedia.org/wiki/Kinmen

Indonesia Expels Chinese Coast Guard Vessel in Natuna Sea Waters Three Times

On October 21, Indonesia reported that China’s Coast Guard ship 5402 entered the northern waters of the Natuna Sea without permission on three occasions, disrupting seismic survey activities conducted by a unit under Indonesia’s state-owned oil and gas company in the area. Indonesian authorities communicated with the Chinese vessel via radio. The Chinese side insisted that the waters it entered were under Chinese jurisdiction. In the end, Indonesia deployed a patrol plane and patrol ship to expel the Chinese vessel.

The same Chinese vessel entered the waters again on October 23 and was expelled by Indonesia.

On October 24th, Chinese Foreign Ministry spokesperson Lin Jian responded to the incidents, stating that the Chinese Coast Guard vessel was patrolling within waters under Chinese jurisdiction. Lin said that China is willing to strengthen communication and consultations with Indonesia through diplomatic channels to properly handle maritime issues between the two countries.

On the next day, October 25, the same Chinese vessel entered the waters again. And again, Indonesia expelled it.

Source: Lianhe Zaobao, October 27, 2024
https://www.zaobao.com.sg/news/sea/story20241027-5254193

Lianhe Zaobao: Nokia Reportedly Laying off Nearly 2,000 Employees in China

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, Finnish telecoms giant Nokia has laid off nearly 2,000 employees in China as part of the company’s cost-cutting plan announced last year. According to an internal report from Nokia, as of the end of 2023, the company employed approximately 10,400 employees in Greater China and 37,400 employees in Europe. Nokia’s layoffs in China account for about one-fifth of its workforce in the region.

China used to be Nokia’s second largest market, but in recent years, with the competition from China’s domestic communications manufacturers and the ban on Huawei in European and American countries, the number of contracts between Chinese telecom operators and Nokia and Ericsson has decreased. In 2019, approximately 27 percent of Nokia’s net sales came from Greater China. Now the company’s total share of the Chinese communications equipment market dropped to less than 5 percent.
Nokia also plans to cut 350 jobs in Europe as it continues to reduce costs. And Nokia’s rival Ericsson is also cutting costs (including layoffs) to combat sluggish sales.

Source: Lianhe Zaobao, October 18, 2024
https://www.zaobao.com.sg/news/china/story20241018-5180057

European Parliament Condemns China’s Interpretation of UN Resolution 2758, Supports Taiwan’s International Participation

On October 24th, the European Parliament passed a resolution titled Misinterpretation of UN resolution 2758 by the People’s Republic of China and its continuous military provocations around Taiwan” with 432 votes in favor, 60 against, and 71 abstentions. The resolution offered the clearest stance to date on UN Resolution 2758, emphasizing that it does not take a position on Taiwan’s participation in the United Nations General Assembly. The resolution strongly opposes the People’s Republic of China’s misinterpretation of history and international rules, which it uses to block Taiwan’s meaningful participation in international organizations. It calls on the EU to use diplomatic and economic measures to counter China’s coercion. The resolution describes Taiwan as a key, like-minded partner for the EU in the Indo-Pacific region and encourages the EU and member states to deepen cooperation and exchanges with Taiwan in areas such as economic investment, the semiconductor supply chain, disaster relief, and civil defense. It also calls for continued support for Taiwan’s meaningful participation in international organizations like the World Health Organization (WHO), International Civil Aviation Organization (ICAO), and International Criminal Police Organization (INTERPOL).

The resolution condemns the military exercises and ongoing provocations by the People’s Liberation Army around the Taiwan Strait and commends the restraint shown by the Taiwanese government.

Source: Radio Free Asia, October 25, 2024
https://www.rfa.org/cantonese/news/htm/taiwan-european-parliament-china-united-nations-2758-10252024015324.html?encoding=simplified

Xinhua Commentary: New Era of “Big BRICS” with China’s Strategic Vision

The 16th BRICS Leaders’ Summit was held from October 22 to 24, in Kazan, Russia. This was the first summit since the expansion of BRICS from five countries to nine, which China called it the “Big BRICS.”

Xinhua News Agency published several commentaries stressing the importance of the summit. One commentary said that China has left a significant mark on BRICS’ growth journey. From proposing the “BRICS Spirit” to initiating the “BRICS+” cooperation model, from launching the new “three-pillar” stages of cooperation (political security, economic and financial affairs, cultural exchange) to Xin Jinping’s new speech of five points on BRICS development (“Peaceful BRICS,” “Innovative BRICS,” “Green BRICS,” “Just BRICS,” and “Cultural BRICS”), China has provided a roadmap and direction to advance BRICS cooperation from a new starting point.

Another commentary said that global affairs should be handled through joint consultation, international rules should be formulated and observed by all countries together, and the benefits of governance should be shared by everyone. This is a common pursuit of many “Global South” countries. The BRICS cooperation mechanism is working to make the global governance system more balanced and more representative.

Source:
1. Xinhua, October 25, 2024
http://www.xinhuanet.com/world/20241025/eb0fb38f28404e13b76905c007758991/c.html
2. Xinhua, October 21, 2024
http://www.news.cn/world/20241021/d24e1181b5e24ad8a319993d6f94c621/c.html

China Commemorates 74th Anniversary of Chinese Army’s Participation in Korean War, North Korea Officials Absent From Celebration

Xinhua News Agency reported that October 25 was the 74th anniversary of the Chinese People’s Volunteers (CPV) entering the Korean War to resist U.S. aggression and aid Korea. On this day, the China’s Ambassador to North Korea, Wang Yajun, led embassy diplomats, representatives of Chinese enterprises in North Korea, media, overseas Chinese, and Chinese students in a wreath-laying ceremony at the China-North Korea Friendship Tower in Pyongyang, paying deep respect to the fallen CPV heroes. Also, on October 21, Wang, along with embassy diplomats and representatives of Chinese enterprises, media, and overseas Chinese, visited the CPV Martyrs’ Cemetery in Yangde County, South Pyongan Province, to honor the martyrs.

However, the report didn’t mention the participation of any North Korean officials.

Compared to a year ago, Chinese media reported that many North Korean officials attended the same event at the China-North Korea Friendship Tower, including Vice Chairman of the Standing Committee of the Supreme People’s Assembly Kang Yun-sok, Deputy Minister of the International Department of the Workers’ Party of Korea Mun Song-guk, Deputy Minister of National Defense Kim Min-sok, Deputy Foreign Minister Pak Myong-ho, Deputy Minister of Foreign Economic Affairs Ryu Eun-hye, Deputy Minister of Culture Pak Kyong-chol, Deputy Chairman of the Committee for Cultural Relations with Foreign Countries and Chairman of the DPRK-China Friendship Association Pak Kyong-il, and Deputy Chairman of the Pyongyang City People’s Committee Hong Kim-chol. On the same day, ceremonies were held at the CPV Martyrs’ Cemeteries in Hoechang, Anju, and Kaesong, where local North Korean officials and residents laid wreaths.

Source:
1. Xinhua, October 25, 2024
http://www.xinhuanet.com/politics/20241025/20526d8048d047e7a2910072aab88844/c.html
2. chinamartyrs.gov.cn, October 27, 2023
https://www.chinamartyrs.gov.cn/shengji_gzdt/shengjigjhz/202404/t20240412_411655.html

Chinese Dairy Giant Feihe Faces Backlash Over Japanese Partnership Amid Rising Anti-Japanese Sentiment

Chinese dairy company Feihe faced significant social media backlash after announcing a technical cooperation agreement with Japanese biotech firm Kyowa Kirin on October 3rd. The controversy emerged amid heightened anti-Japanese sentiment in China following the tragic stabbing death of a Japanese schoolboy in Shenzhen on September 18th.

After the announcement of their joint innovation laboratory for developing fermented lactoferrin production technology, false claims began circulating on Chinese social media. These included allegations that Feihe was receiving Japanese investment and importing Japanese raw materials. Some netizens connected this to concerns about Japan’s nuclear wastewater release, leading to calls for boycotts and expressions of distrust regarding Japanese involvement in products for Chinese children.

As the misinformation spread and reached trending topics, Feihe issued a statement on WeChat on October 18th addressing these claims. The company clarified that the partnership was limited to technical exchange and did not involve raw material imports or formula usage. They also announced they had filed a police report and would pursue legal action against those spreading false information.

Feihe emphasized its status as a leading Chinese national enterprise, noting its establishment in Heilongjiang in 1962 and its position as China’s top infant formula manufacturer with 21.5% market share as of January 2023. The company stressed its patriotic alignment with consumers and explained that its collaborations with domestic and international research institutions aim to improve their products for Chinese babies.

Source: Central News Agency (Taiwan), October 19, 2024
https://www.cna.com.tw/news/acn/202410190226.aspx