Major Taiwanese newspaper China Times recently reported that, in a media interview, Indian Commerce Minister Piyush Goyal reiterated India’s refusal to join the Regional Comprehensive Economic Partnership (RCEP). He said that it is “not in India’s best interest” to sign an FTA (free trade agreement) with a country lacking economic transparency (like China).

RCEP’s original negotiation members in 2013 included India, and other countries believed that India’s role could be a check and balance to China. However, India has refused to participate in RCEP in 2019, citing unresolved issues regarding “core interests.” Goyal pointed out that, at the, time India had already signed FTAs with ASEAN, Japan and South Korea, and had reached a bilateral trade agreement with New Zealand worth approximately US$300 million. “Joining RCEP was not in the interests of our farmers and small and medium-sized enterprises, and to a certain extent, it is just an FTA with China,” he said. He further explained that, China’s economy is very opaque, “from trade to politics to management methods. No one in India wanted to sign an FTA with an economy with no transparency.”

Goyal also promoted the idea of India becoming a “Taiwan + 1” semiconductor country, aiming to attract business investment from companies that seek to diversify their computer chip supply chain away from just Taiwan.

Source: China Times, September 23, 2024
https://www.chinatimes.com/realtimenews/20240923004101-260410

Deutsche Welle Chinese Edition recently reported that the German Environmental Protection Agency (UBA) suspects 45 of 66 Chinese climate emission reduction projects of fraud involving carbon credits worth approximately 1.5 billion euros. The German government has taken measures to revoke the certification of these projects, but the huge financial losses have been irreparable.

The German authorities conducted an in-depth review of Chinese projects and found defrauding EU emission reduction certificates through false declarations and exaggerated data. The application period for many projects was during the Covid-19 period when travel of relevant certification personnel was severely restricted.

In EU’s carbon emission reduction system, Upstream Emission Reductions (UER) projects can obtain corresponding carbon credits by implementing reduction measures in the upstream industrial supply chain, such as improving equipment energy efficiency. However, lack of necessary independence and transparency in the UER certification process allowed the same people to involve in the creation, validation and certification at the same time. They were very familiar with the UER system and used their professional knowledge and industry loopholes to enable fake projects to pass certification. The German investigation also found that a market for buying and selling UER certifications has formed in China.

So far, Chinese officials have not responded directly to the relevant investigations and fraud accusations launched by Germany.

Source: DW Chinese, September 22, 2024
https://p.dw.com/p/4kucQ

A South Korean research report indicates that Chinese netizens are systematically posting negative comments on news and posts related to industries where South Korea and China are in competition. These comments primarily disparage Korean products while praising Chinese ones, and this trend is increasing.

The report, titled “Cognitive Warfare in Korea-China Competitive Industries,” was released by a research team led by professors Kim Eun-young and Hong Seok-hoon. They analyzed comments on platforms like NAVER, YouTube, and NATE from July 2023 to August 2024.

The team identified 77 suspected Chinese accounts on NAVER, organized into two groups coordinated by core users. Similar negative comments have appeared in competitive sectors like electric vehicles and smartphones for several years, with increasing frequency recently.

The report categorizes these manipulative behaviors into three types: dismay, divide, and dismiss. Examples include comments suggesting the superiority of Chinese cars over Hyundai, or claiming that the U.S. will betray South Korea.

The researchers believe the 77 NAVER accounts are just the tip of the iceberg, with 239 similar accounts found on YouTube posting even more frequently. They call for establishing a database and analysis mechanism to counter this new form of cognitive warfare and urge the government to develop countermeasures.

Source: Yonhap News Agency, September 29, 2024
https://cn.yna.co.kr/view/ACK20240929000800881?section=china-relationship/index

China has unveiled its latest move in the realm of cybersecurity with the publication of the “Network Data Security Management Regulations.” Set to take effect on January 1st next year, these regulations signify a significant escalation in the government’s approach to data security oversight.

The new rules, signed into order by Premier Li Qiang, establish a comprehensive framework for managing network data security. They emphasize a system of data classification and graded protection while strictly prohibiting illegal data processing. Under these regulations, network data processors are required to implement robust security management systems and fulfill obligations related to risk reporting and security incident handling.

In a notable shift from the 2021 draft, the current version has softened its stance on certain controversial elements. The previously proposed comprehensive approval mechanism for data exports has been replaced with more flexible conditions for cross-border data transmission. Additionally, the regulations have streamlined algorithm review requirements for platforms, aiming to enhance transparency and social responsibility standards.

Personal information protection receives particular attention in the new regulations. They outline specific measures governing the use of automated collection technologies and clearly define the responsibilities of network data processors in ensuring lawful collection and processing of personal information.

For cross-border data transfers, the regulations stipulate that such transfers must comply with international treaties and agreements to which China is a party. Importantly, data not categorized as “important” will not require cross-border security assessments.

Despite these adjustments, concerns persist among foreign businesses operating in China. While some controversial elements have been removed, uncertainties remain regarding the practical implementation of these regulations. Foreign companies continue to face strict data control measures, as exemplified by Apple’s requirement to store Chinese user data on servers in Guizhou.

As China’s digital economy continues to grow, these new regulations underscore the government’s commitment to maintaining a firm grip on data security while attempting to balance domestic control with international business practices.

Source: Radio Free Asia, October 1, 2024
https://www.rfa.org/mandarin/yataibaodao/meiti/jw-china-online-data-security-management-regulations-10012024102348.html

German newspaper Süddeutsche Zeitung argues that Europe must develop its own robust industrial policy in response to US actions and Chinese market strategies. The US has preemptively banned Chinese components and software in smart connected cars, and Europe should follow suit to avoid dependence on China and protect against product dumping.

Unlike US automakers who have largely abandoned the Chinese market, German manufacturers like Volkswagen, Mercedes, and BMW heavily rely on it. This dependency makes them vulnerable to potential retaliation from Beijing. Chinese firms are also investing billions in battery and car factories in Europe, making it costly for Europeans to suddenly exclude Chinese products.

The article warns that the US may pressure its allies to adopt similar restrictive measures, especially if Trump returns to power. Meanwhile, China is reportedly instructing its companies to avoid transferring technology to local firms when entering the European market, potentially creating a dependency similar to that in the solar energy sector.

The EU has begun developing strategies to reduce dependence and subsidize strategic industries like chips and batteries. It has also launched anti-dumping investigations. The article concludes by urging EU member states, particularly Germany, to actively support a unified EU strategy rather than pursuing individual, potentially conflicting policies.

Source: Deutsche Welle, September 28, 2024
https://p.dw.com/p/4lC1T