Chinascope – Page 179

Large Real Estate Developer Yango Group Defaulted Domestically and Internationally

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the Yango Group of Fujian Province has a market value of RMB hundreds of billions. Its domestic and overseas debts exploded at the same time. On March 16, China Construction Bank issued an announcement that Yango’s RMB 600 million medium-term notes “20 Yango MTN001” missed their due date of March 15. The issuer, Yango Group, failed to pay the interest or principal in full on schedule, which constituted a breach. On the same day, the company’s controlling shareholder, Sunshine Group, announced that the principal and interest of the existing overseas bonds “YANGOG 12.5 02/20/22” (US$106 million) and “YANGOG 12.5 01/04/24” (US$300 million) defaulted. More defaults are expected in the next one-year timeframe since there are payments due every month. In the past month, Yango Group has also suffered a number of holdings being judicially frozen. After the thunderstorm in Yango, the company’s senior executives were in turmoil and many of them departed. Yango is a publicly traded company with a real estate business in over 100 cities across China. It ranks among the top 20 real estate companies in China.

Source: NetEase, March 17, 2022
https://www.163.com/dy/article/H2LE9J030530NLC9.html

Briefings | | March 21, 2022 | Economy/Resources

China Encounters Obstacles in Global Race for Cobalt

At the beginning of March, a Congolese court ordered Chinese Molybdenum Co. (Luoyang Luanchuan Molybdenum) to cede control temporarily (for approximately six months) of the cobalt mine –Tenke Fungurume. The state-owned miner Gécamines SA of the Democratic Republic of the Congo (DRC) accused Chinese Molybdenum of trying to evade paying millions of dollars in royalties by under-reporting reserves. China Molybdenum acquired the mine from Freeport McMoRan Inc. in 2016 for $2.65 billion. The investigation has been extended to several other Chinese companies there. That extension threatens to affect China’s global competition in cobalt.

The DRC’s cobalt belt is the world’s richest source of cobalt. It has become critical to the global transition to cleaner energy. Cobalt can boost charge rates and has a stabilizing effect, extending battery life and preventing cathode corrosion that can lead to battery fires. Just one electric vehicle can require between 10 and 30 pounds of cobalt to build its battery, depending on the manufacturer.

China has been using electric vehicles as a breakthrough point to catch up with the Western auto industry. It has not only included them in the ten key areas of “Made in China 2025” but has also laid out a big plan to monopolize cobalt by investing heavily in Africa. China’s interest includes areas from cobalt mining to the generation of lithium batteries. It also includes cobalt refining, manufacturing battery cells, integrating battery modules and assembling batteries. China is trying to control the entire ecosystem. The Wall Street Journal previously reported that, for more than a decade, Chinese companies have spent billions of dollars buying out U.S. and European mines in the DRC’s cobalt belt.

According to the estimates by Darton Commodities, Chinese refineries supplied 85 percent of the world’s battery cobalt in 2020. Most of this cobalt came from the DRC. Last year the DRC accounted for 70 percent of the world’s total cobalt production. Chinese companies dominate nearly 70 percent of the country’s mining industry.

The DRC is one of the world’s poorest countries. More than 60 percent of its 90 million people live on less than $1.90 a day. According to the World Bank, the DRC’s annual budget is about $7 billion. In the middle of last year, during a visit to mining areas, DRC President Félix Tshisekedi vowed that his government would continue to review mining contracts to ensure that the Congolese people benefit from their vast extractive industry and finally break the so-called resources curse by paying higher wages and royalties.

Euractiv even reported that the Congolese workers of Sicomines who are employed by a company a Chinese consortium owns claim that they do the same work as Chinese workers do but are paid much less than Chinese and their Chinese supervisors subject them to degrading treatment.

Source: Epoch Times, March 12, 2022

https://www.epochtimes.com/gb/22/3/12/n13641727.htm

Briefings | | March 18, 2022 | Geo-Strategic Trend

Global Times Editorial: Washington Cannot Expect China’s “Cooperation” while Suppressing China

China’s state-run media Global Times published an editorial following a meeting of Yang Jiechi, Director of the Office of the Foreign Affairs Commission of the CPC Central Committee with Jake Sullivan, National Security Advisor to the President of the United States, in Rome, Italy on March 14. Below is an excerpt from the article:

“We noted that the White House’s statements both before and after the meeting mentioned the Ukraine issue and ‘maintaining open channels of communication between the United States and China.’ Some analysts believe that it is more likely that the United States offered to meet. In the context of the Russian-Ukrainian conflict, it is the United States who has demands for China.”

“In any case, if the U.S. really wants to make “continuous efforts” to maintain “open communication channels” between the two sides, it should at least show a sincere attitude first. However, just a day before this meeting, the U.S. played a lot of disgraceful tricks, all of which are related to the Ukraine issue. For example, the U.S. media reported the news through a so-called “anonymous senior U.S. official,” saying that after the Russian-Ukrainian conflict, Russia asked China to provide “military assistance,” including drones. In another example, Sullivan himself also said on the same day that if Beijing assists or supports Russia to evade sanctions on a large scale, “there will definitely be consequences.” The threat is obviously expressed in words. Using rumors and intimidation to seek favorable conditions for negotiation is an old means of American diplomacy, China never buys this strategy.”

“These actions also show from another aspect that Washington is really anxious about the Ukraine issue. It wants China to dance with its own pace. What the United States hopes is to weave a big net to strangle Russia all over the world, so that all countries can become a node in this net, and no ‘loopholes’ are allowed. The United States is the initiator in the Ukraine crisis. But it wants the world to be a ‘tool man’ for its expansion of strategic interests. It makes one wonder, where does the United States get its confidence? Have you been dominating the world for so long that you even think that the joystick that turns the earth is in your hands? If Washington wants to forcibly tie Sino-U.S. relations to the Russia-Ukraine crisis, it obviously has ‘deviated’ from the path, and it will definitely be disappointed.”

“Last year, U.S. leaders and some senior officials successively stated that the U.S. does not seek a ‘new Cold War,’ does not seek to change China’s system, does not seek to strengthen alliances against China, does not support ‘Taiwan independence,’ and has no intention of confronting China. But these ‘four does nots and one no intention” are still only on the lips. Just two days ago, the U.S. Congress passed a bill to use the so-called map of the Taiwan region to engage in political manipulation, creating ‘two Chinas’ and ‘one China, one Taiwan.’ This is not only a blatant provocation against China’s sovereignty and territorial integrity, but also another proof of Washington’s disloyalty toward its commitments. There are many more such things. Under such circumstances, why does the U.S. think that China should ‘cooperate’ with it?”

Source: Global Times, March 15, 2022
https://opinion.huanqiu.com/article/47CLWUTMWQN

Briefings | | March 18, 2022 | US-China Relations

Duowei News: China’s Retort to NATO’s Call to Condemn Russia: “We Will Never Forget the Embassy Bombing Incident”

Duowei News, a Chinese news media based in North America and a major media portal of China’s “great overseas propaganda” network, reported that, in a press conference on March 15, NATO’s Secretary General Jens Stoltenberg expressed that China has an obligation as a member of the UN Security Council actually to support and to uphold international law and join the rest of the world in condemning Russia’s invasion.
In response, the spokesperson for the Mission of the People’s Republic of China to the European Union retorted, “We have taken note of the relevant remarks. The Chinese people can fully relate to the pains and sufferings of other countries because we will never forget who bombed our embassy in the Federal Republic of Yugoslavia.[ [ ] We need no lecture on justice from the abuser of international law. As a Cold War remnant and the world’s largest military alliance, NATO continues to expand its geographical scope and range of operations. What kind of role has it played in world peace and stability? NATO needs to do some good reflection.”
[ [ ] Referring to the bombing of its embassy in Yugoslavia by Nato forces decades ago

Source: Duowei News, March 17, 2022
https://www.scmp.com/news/china/diplomacy/article/3170821/china-harks-back-belgrade-embassy-bombing-after-nato-cites-its?module=perpetual_scroll_0&pgtype=article&campaign=3170821 https://www.dwnews.com/全球/60282371/北约呼吁中国谴责俄罗斯中方强硬回击永不会忘炸馆事件

Briefings | | March 17, 2022 | Government/Politics US-China Relations

National Congress Proposals: Graduate Earlier to Have a Baby Earlier

China finished its National “Lianghui” from March 4 to March 12 this year. “Lianghui,” or the “Two Conferences,” is a common Mandarin Chinese abbreviation for the National People’s Congress and the National Chinese People’s Political Consultative Conference. It is a rubber stamp process to show there is “democracy” in China: the representatives can review, approve, and comment on the work of the central government and propose policies to the governments, though that has no substantial effect.

A few representatives made proposals this year to encourage more births, indicating that China is facing a serious birth shortage problem.

A university vice president suggested to shorten the education of elementary, middle, and high schools from 12 years to 10 years, so that “people can graduate earlier, start work earlier, get married earlier, and then have babies earlier.”

Another representative suggested to completely lift the birth control policy in Northeastern China. China’s current policy is that a couple can have up to three children. According to Beijing’s 2020 Census, the population in Northeastern China dropped 11 million from 2010 to 2020.

Another proposal was to allow people to retire at the age of 45. The earlier retirement could free up more jobs to young people, so that they have less pressure to focus on their job and delay the time to have baby.

There are also proposals to allow single women to have one child and mandate men to take one month of paternity leave.

Source: Epoch Times, March 10, 2022
https://www.epochtimes.com/gb/22/3/10/n13635697.htm

Briefings | | March 17, 2022 | Economy/Resources

Democratic Republic of Congo Halts China’s Control of a Cobalt Mine

Cobalt is a key material in the lithium-ion battery, and critical to electric cars. In the past 10 years, Chinese companies have spent several billion dollars to buy up the cobalt mines in the Democratic Republic of Congo, the largest cobalt supplying country in the world.

Recently a Congo court ordered China Molybdenum Co. to temporarily give up its control of the Tenke Fungurume mine. Gécamines SA, Congo’s state mine company reported that China Molybdenum Co. provided a false, low mine reserve number to the government to evade several million dollars in fees. The Congo authorities stopped the Chinese company’s operation in the mine for six months, until the accounting firm Mazars re-assesses the true value. The investigation has also expanded to a few other Chinese companies.

Last year, Congo President Félix Tshisekedi vowed that his government will continue reviewing mine contracts to ensure the Congo people benefit from the mining. Earlier this year, the Biden administration sent a group to Congo to discuss how the U.S. can obtain cobalt.

Source: Epoch Times, March 12, 2022
https://www.epochtimes.com/gb/22/3/12/n13641727.htm

Briefings | | March 17, 2022 | Economy/Resources Geo-Strategic Trend

Pandemic: Shanghai Partially and Shenzhen Fully Locked Down, Jilin Locked Down the Province

The COVID-19 virus is spreading in China. Beijing, Shanghai, and Shenzhen all reported Omicron cases. Authorities reported 3,507 confirmed infection cases and 1,647 asymptomatic cases, or 5,154 cases in total, in one day on March 14; whereas, in the past, the official daily infected count was only in the range of one or a few hundred. The Chinese Communist Party (CCP) is known for hiding COVID information, so the actual infection count is unknown.

China’s National Health Commission issued a statement on March 15 that from March 1 to 14, the cumulative number of reported infections in China exceeded 15,000 and has spread to 28 provinces and municipalities.

Several cities in China were locked down. The Shenzhen City, Guangdong Province lockdown was from March 14 to 21. Shanghai is also partially locked down: schools, residential communities, and hospitals that had COVID cases or had people in close contact with COVID patients were locked down. All train and long-distance bus stations were closed on March 14, and all elementary and middle schools have changed to online teaching.

Other locked-down cities include Changchun, the capital city of Jilin Province on March 11; Yuchen City, Shandong Province on March 11; Dongguan City, Guangdong Province on March 14; and Langfang City, Hebei Province on March 15. Shengyang City, Liaoning Province shut down its international airport on March 15.

Jilin Province became the first locked down province in this round. It reported 4,067 cases on March 14 and an accumulation of over 8,000 patients since February 28. Authorities announced a lockdown of the whole province on March 14, prohibiting its 24 million residents from leaving the province. Jilin City in the province also built several modular hospitals with 10,000 beds.

Jiangsu Province, next to Shanghai, asked its residents to report any person coming from Shanghai or other infected areas. Wuxi City, Jiangsu published an award policy on March 12: reporting a person who had close contact with a COVID patient but didn’t quarantine himself would receive an award 2,000 yuan (US $315); reporting a person who left home while taking home quarantine – award 1,000 yuan; and reporting a person who came from an infected area but didn’t report himself to the local authorities – award 500 yuan. If any of the reported persons tested positive, the reporter will be awarded another 10,000 yuan. Nantong City, Jiangsu Province also announced an award of 200 yuan for reporting a person coming from Shanghai or other high or medium risk areas that the local authorities are not aware of.

Russian Newspaper Listed 10 Ways in which China Benefits from the Russia-Ukraine War

On March 12, the Russian newspaper The View (Взгляд) listed 10 areas in which Chinese companies have benefited from the ongoing Russia-Ukraine War and the sanctions from the U.S. and European countries.

First, the Union Pay system will be a winner. After Mastercard and Visa rejected overseas payment transactions, seven major Russian banks have indicated they plan to connect to China’s Union Pay system.

Second, the Chinese banking system will benefit. The West’s refusal to issue loans to Russian banks and invest in Russian assets creates opportunities for Chinese banks.

Third, it is good for the Chinese Yuan. Cutting off the access to the Dollar and the Euro will create a shortage of Western currency for Russian banks. Russian banks, companies, portfolio investors and ordinary people will turn their attention to the Chinese yuan.

Fourth, the Russian-Chinese trade will continue to climb to historic records.

Fifth, more Chinese consumer goods will enter the Russian market. Chinese clothing and daily products will become realistic substitutes for imported goods due to the shortage of dollars and euros.

Sixth, Chinese automakers will be in a favorable position.

Seventh, China will have access to all Russian energy and other raw materials that Europe rejected.

Eighth, Chinese investors will actively invest in Russian companies under favorable conditions, as competitors are exiting the Russian market.

Ninth, China’s role as a bypass route for Russia will increase. China could become a ‘middleman’ through which Russia could ship needed Western parts while paying to third parties.

Tenth, Chinese airlines will be in an advantageous position. After Russia bans European airlines from flying over its airspace, passengers will fly with Asian airlines, including Chinese airlines.

Source: HK01.com, March 14, 2022
https://www.hk01.com/即时国际/746656

Briefings | | March 16, 2022 | Geo-Strategic Trend

China’s Reaction to Trump’s Election Win

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized