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US-China Relations - 11. page

Beijing Signals Openness to Foreign Investment in Financial Sector

The United States and China recently reached a 90-day temporary truce on tariffs, during which China pledged to further open its market to American businesses.

On May 23, China’s state-run Xinhua News Agency and People’s Daily reported that He Lifeng – Vice Premier and member of the Political Bureau of the Chinese Communist Party (CCP) Central Committee – met separately with John Dugan, Chairman of Citigroup, and Harvey Schwartz, CEO of The Carlyle Group, at the Great Hall of the People in Beijing.

He Lifeng emphasized that China’s economy is steadily recovering and maintaining positive growth momentum. He welcomed foreign financial institutions, including Citigroup and Carlyle, to increase investment and expand operations in China. He expressed hope that they would participate more actively in the development of China’s capital markets, deepen cooperation, and share in the country’s development opportunities.

John Dugan said that Citigroup remains committed to the Chinese market and plans to strengthen its investments and partnerships. He noted the bank’s intention to expand into new areas such as securities, futures, and financial derivatives. Harvey Schwartz also expressed optimism about China’s economic outlook, affirming Carlyle’s long-term commitment to the country and plans to further expand its investment footprint.

Source: People’s Daily, May 23, 2025
http://politics.people.com.cn/n1/2025/0523/c1001-40486519.html

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Huanqiu Times: South Africa Criticizes U.S. for Accepting White South African Migrants

Huanqiu Times, a Chinese Communist Party (CCP) state-run media outlet focused on international affairs, reported that South African President Cyril Ramaphosa publicly denounced the 59 white South Africans recently accepted by the Trump administration as refugees. Below are highlights from the report:

Despite the Trump administration’s ongoing crackdown on immigration and the suspension of refugee admissions, the U.S. accepted 59 white South African “refugees” on May 12. Trump had previously expressed his willingness to resettle white South Africans, claiming they were fleeing a “dire situation” in their home country.

However, during a public event on the same day, South Africa President Ramaphosa criticized the group, calling them “cowards.” He also revealed that he had recently spoken with Trump by phone, during which he conveyed that the U.S. assessment of the situation in South Africa was “inaccurate.” Ramaphosa rejected the notion that Afrikaners are being persecuted or expelled and asserted that the 59 individuals in question did not meet the criteria for refugee status. He stated that he intends to meet with Trump soon to further discuss the issue.

Citing the Sunday Times of South Africa, the report noted that since the end of apartheid in 1994, the white minority has continued to hold the majority of the country’s wealth, amassed during the colonial and apartheid eras. White South Africans still own approximately 75 percent of private land, while Black South Africans – who make up 81 percent of the population – own just 4 percent. In January, Ramaphosa signed the Expropriation Bill, a land reform measure that permits the government to seize private land without compensation under specific conditions serving the public interest. Although no land has yet been expropriated under the new law, it has sparked significant controversy, particularly among entrenched economic elites.

Source: Huanqiu Times, May 14, 2025
https://m.huanqiu.com/article/4Mg0YlXMR4I

Briefings | | |   Geo-Strategic Trend US-China Relations

Chinese Companies Advertising “Origin Laundering” Services to Avoid U.S. Tariffs

Amidst the high U.S. tariffs on imported Chinese goods, Chinese export companies are increasingly turning to “origin laundering” to circumvent trade restrictions. On Chinese social media, a growing number of advertisements are openly promoting schemes to reroute goods through third countries – particularly Malaysia – where products are relabeled and issued new certificates of origin to appear as though they come from elsewhere before being exported to the U.S.

The Epoch Times reported several advertisements it found on China’s social media.

  • A Douyin (TikTok’s Chinese version) account “Ruby-Third Country Transshipment” offered services to help exporters ship goods to countries like Malaysia and obtain fresh origin documents for onward shipment to the U.S.
  • Another Douyin account, “Jingwei Consolidated Transshipment Trade Logistics,” posted a video on April 7 declaring: “Many foreign trade companies are now shifting toward transshipment trade – this is the industry trend.” The company claimed to possess extensive resources in major transshipment hubs and promised to issue “authentic, effective, and reliable” documentation to help clients overcome anti-dumping and trade barriers.
  • An account named “Tuolong-U.S.-Canada Line Sam” shared a diagram outlining a competitive transshipment process on April 10, commenting, “There are always more solutions than problems.”

Malaysia has tightened its transshipment and origin certification policies in May.

Source: Epoch Times, May 6, 2025
https://www.epochtimes.com/gb/25/5/6/n14500435.htm

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Malaysia Tightens Certificate of Origin Requirement Amid U.S. Tariff Pressures

Despite Xi Jinping’s visit to Malaysia in April and his appeal for Malaysia’s help in working against U.S. tariffs, Malaysia recently announced that it will tighten control over certificates of origin for goods exported to the U.S. This will help to prevent China from using Malaysia as a country-of-origin in attempts to circumvent U.S. tariffs.

On May 6, Malaysia’s Ministry of Investment, Trade and Industry (MITI) announced that it will now serve as the sole authority for issuing Non-Preferential Certificates of Origin (NPCO) for goods exported to the U.S. Chambers of commerce, trade associations, and other previously designated entities will no longer be permitted to issue such certificates. MITI also stated that Malaysia will implement additional measures to strengthen customs compliance, including investigations and enforcement actions to curb illegal transshipment of goods through Malaysian customs to the U.S.

Amid growing U.S. tariff pressures, many Chinese companies have turned to Malaysia as a transshipment hub to circumvent trade barriers. Typically, these firms collaborate with local freight forwarders and trading companies, using NPCOs issued by Malaysian chambers of commerce to reclassify the products’ origin as Malaysian.

This new policy may make this workaround no longer a viable path for Chinese exporters seeking to avoid tariffs.

Source: Sina, May 6, 2025
https://finance.sina.com.cn/tech/roll/2025-05-06/doc-inevrkuv4538648.shtml

Briefings | | |   Economy/Resources Geo-Strategic Trend US-China Relations

Former Harvard Professor Convicted in US Joins Tsinghua University in China

Charles Lieber, the former Harvard University chemistry department chair who was convicted in the US for concealing his ties to China’s Thousand Talents Program, has been appointed as a chair professor at Beijing’s Tsinghua University.

Lieber is a renowned nanoscience researcher who won the Wolf Prize in Chemistry in 2012 and was considered a potential Nobel Prize candidate. He was convicted in the US for lying to federal authorities in 2018 and 2019 about his involvement in China’s Thousand Talents Program and his relationship with Wuhan University of Technology.

According to previous media reports, the US Department of Justice alleged that Lieber signed a three-year contract with the Chinese talent recruitment program. The agreement included establishing a research laboratory at Wuhan University of Technology, publishing papers, organizing international conferences, and applying for patents on behalf of the university. He reportedly received approximately $50,000 monthly plus $150,000 in living expenses.

In December 2021, a jury found Lieber guilty of tax crimes and making false statements about his work in Wuhan. He was sentenced in April 2023 to a fine and two years of supervised release, with the first six months under house arrest.

According to an announcement on the Tsinghua Shenzhen International Graduate School website on May 1, Lieber has joined the institution full-time. The appointment ceremony took place on April 28, where he received certificates naming him as a Tsinghua University chair professor and a researcher at the Shenzhen Medical Sciences Academy.

During the ceremony, Lieber expressed that his goal for the coming years is to “build a global technology center and realize more scientific dreams” with colleagues in Shenzhen. He stated that he is ready to begin a new research journey and eager to start work immediately.

Source: Central News Agency (Taiwan), May 4, 2025
https://www.cna.com.tw/news/acn/202505040113.aspx

Briefings | | |   US-China Relations

Lianhe Zaobao: U.S. Sanctioned A Third Chinese Refinery Importing Iranian Oil

Singapore’s leading Chinese-language newspaper, Lianhe Zaobao, recently reported that the United States has imposed sanctions on a third independent Chinese oil refinery and several port operators accused of importing Iranian oil. The move reflects the broader impact of Washington’s intensified pressure on Tehran’s nuclear program, with China – Iran’s largest oil customer – being directly affected.

This latest round of sanctions targets Hebei Xinhai Chemical Group, an independent refinery, along with three port companies operating in Dongying Port, Shandong Province. The companies are accused of purchasing or facilitating the transport of hundreds of millions of dollars’ worth of Iranian crude. Since 2024, Xinhai Chemical has reportedly received several shipments of Iranian oil – over one million barrels in total – delivered through so-called “shadow fleets” via Dongying Port.

A spokesperson for the Chinese Embassy in the U.S. condemned the sanctions, stating that China has consistently opposed the U.S. practice of imposing unilateral, extraterritorial sanctions and called on Washington to stop interfering in legitimate economic and trade cooperation between China and Iran.

Despite Iranian oil making up approximately 90 percent of Iran’s exports, Chinese customs data has shown no recorded imports from Iran since July 2022. Instead, Iranian crude is often rebranded as originating from countries like Malaysia. In recent months, the U.S. has already sanctioned two other independent Chinese refineries located in Shandong Province.

Source: Lianhe Zaobao, May 9, 2025
https://www.zaobao.com.sg/news/china/story20250509-6316676

Briefings | | |   US-China Relations

RFI Chinese: China’s Exports to the U.S. Fell 17.6 Percent in April

Radio France Internationale (RFI) Chinese Edition recently reported that China’s exports to the United States dropped by 17.6 percent in April compared to March, according to newly released data from China’s General Administration of Customs. Exports to the U.S. totaled US$33 billion last month, down from US$40.1 billion in March, as trade tensions between Beijing and Washington persist.

Some economists noted that the full impact of U.S. tariffs may not yet be reflected in April’s figures, partly due to transshipments through third countries and trade contracts signed prior to the implementation of the tariffs. However, analysts widely expect trade performance to deteriorate further in the coming months.

On the import side, China’s purchases declined by just 0.2 percent in April—less than the six percent drop forecast by analysts. Given that imports are seen as a key indicator of domestic consumer demand, this smaller-than-expected decrease has drawn close attention.

To counter the economic headwinds stemming from sluggish consumption and ongoing trade friction with the U.S., China’s central bank has recently introduced measures to stimulate the economy. These include a cut to the reserve requirement ratio (RRR) to encourage bank lending and a reduction in mortgage rates aimed at easing pressure on the housing market.

Source: RFI Chinese, May 9, 2025
https://tinyurl.com/uy6c4xbe

Briefings | | |   Economy/Resources US-China Relations