According to LobbyControl, a non-government organization that monitors lobbying in Germany and other parts of Europe, China’s Huawei spends €3 million annually on lobbying in Brussels and has 12 full-time lobbyists in the EU. Their focus has been on gaining access to 5G network construction, especially in Germany. Huawei has also implemented “youth sponsorship and scholarship” programs to improve its image.

TikTok spends €1.25 million on lobbying in Brussels, employing five full-time lobbyists. In Germany, they spend about €200,000 and have three full-time representatives. TikTok has invested heavily in advertising and sponsorships to enhance its reputation.

Both companies are members of various professional associations in the EU and Germany, aiming to expand their influence. Relationships with think tanks and friendship associations also play crucial roles in their lobbying efforts.

LobbyControl concludes that Chinese tech companies are intensifying their lobbying efforts in the EU, creating complex networks that sometimes lack transparency. While not as aggressive as American tech companies, Chinese firms are becoming increasingly active and influential. They receive support from official institutions within China as well as from German industry.

The report predicts that more Chinese tech companies will enter the European market in the coming years, potentially leading to large-scale lobbying activities if EU policies conflict with their interests. LobbyControl pledges to monitor these developments and push for increased transparency and anti-corruption measures.

Source: Deutsche Welle, August 20, 2024
https://p.dw.com/p/4jgTv

German direct investment in China has seen a significant uptick in 2023, defying the German government’s calls for economic diversification and reduced dependence on China. According to data from the German central bank, German direct investment in China reached €7.3 billion in the first half of 2023 alone, already surpassing the €6.5 billion recorded for the entire year of 2022.

This trend stands in stark contrast to the German government’s new China strategy which, due to geopolitical concerns, advocates for reduced reliance on the Asian economic powerhouse. German media analysis reveals a complex picture of motivations for and consequences following this investment surge.

Major German companies, particularly automakers like Volkswagen, appear to be disregarding government warnings about geopolitical risks. Many are adopting an “in China, for China” strategy, focusing on localizing production and supply chains to serve the Chinese market directly.
Interestingly, the bulk of these investments stem from profits earned within China, with relatively little new capital flowing from Germany. This suggests a self-reinforcing cycle of investments and returns within the Chinese market.

Some experts have expressed concern that German businesses may have not fully internalized the lessons of the Ukraine war and Germany’s previous overdependence on Russia. They warn of potential risks should China-Taiwan tensions escalate, risks which could have devastating consequences for companies heavily invested in China.

In explaining their increased investment, German firms cite China’s importance as a growth market. They argue that investing in China doesn’t necessarily mean abandoning operations in Germany. Critics contend that this strategy might ultimately benefit job creation in China more than in Germany. Domestic factors in Germany, such as high taxes, bureaucratic hurdles, and a growing shortage of skilled workers, are also pushing companies to look eastward for investment opportunities.

Source Radio France International, August 20, 2024
https://rfi.my/AtDa

The Philippine government stated on August 25 that a Philippine Bureau of Fisheries ship was rammed and hit with a water-cannon by a Chinese coast guard vessel earlier that day while delivering food, fuel, and medical supplies to Filipino fishermen at Sabina Shoal in the South China Sea. While the Philippine supply ship sailed from Half Moon Shoal to Sabina Shoal, the Chinese vessels’ “dangerous maneuvers” caused the Philippine ship’s engine to fail, forcing it to abandon the supply mission.

In response, Gan Yu, a spokesperson for the China Coast Guard, issued a statement claiming that a Philippine vessel “illegally entered the waters near China’s Xianbin Reef in the Nansha Islands without permission from the Chinese government, and that the China Coast Guard took control measures according to the law.” The statement accused the Philippine vessel of “ignoring China’s stern warnings” and “deliberately colliding with the Chinese coast guard ship in an unprofessional and dangerous manner.” It stated that “responsibility [for the incident] lies entirely on the Philippine side.”

In April of this year, the Philippine Coast Guard accused Chinese vessels of dumping crushed coral on Sabina Shoal, a possible attempt at land reclamation. Since then, the Philippine Coast Guard has stationed one of its largest patrol ships at the shoal to monitor the area.

There have been several intense and dangerous confrontations between China and the Philippines in the South China Sea in August, including a confrontation between vessels near the Second Thomas Shoal; two Chinese military aircraft firing flares at a Philippine Air Force patrol plane over Scarborough Shoal on August 8, and a second occurrence of Chinese aircraft firing flares at a Philippine plane over the Subi Reef on August 22.

Source: VOA, August 25, 2024
https://www.voachinese.com/a/china-philippines-clash-in-south-china-sea-despite-efforts-to-rebuild-trust-20240825/7756250.html