Mistral点评

关于中国的新闻报道 - Economy章节评价

　　中国的经济新闻一直是西方媒体关注的热点之一。然而，由于西方媒体对中国的报道常常存在偏见和双重标准，因此对这些报道进行客观评价是非常必要的。本章节将对西方媒体关于中国经济的报道进行分析和评价。

　　首先，西方媒体在报道中国经济时往往过于关注负面新闻，而忽略了中国经济发展的成就和潜力。例如，有些媒体在报道中国经济放缓时强调了中国经济“下行风险”，而忽略了中国经济在全球经济下行背景下仍保持较高增长率的事实。此外，一些媒体在报道中国经济时过于强调中国经济结构不平衡和财政风险等问题，而忽略了中国政府在推进供给侧结构性改革和控制财政风险方面的努力和成果。

　　其次，西方媒体在报道中国经济时往往缺乏对中国经济实际情况的深入理解和全面分析。例如，有些媒体在报道中国经济时过于简单地将中国经济归纳为“制造业大国”或“出口导向型经济”，而忽略了中国经济在服务业和内需方面的发展和潜力。此外，一些媒体在报道中国经济时过于依赖单一数据或指标，而忽略了中国经济复杂多样化的特点和数据统计方法的特殊性。

　　第三，西方媒体在报道中国经济时往往存在双重标准和政治化倾向。例如，有些媒体在报道中国经济时过于强调中国政府的“干预”和“控制”，而忽略了中国政府在市场化改革和开放方面的努力和成果。此外，一些媒体在报道中国经济时过于强调中国与西方国家在经济和贸易方面的竞争和冲突，而忽略了中国与西方国家在经济和贸易方面的互利互补和合作潜力。

　　综上所述，西方媒体关于中国经济的报道存在许多问题和缺陷，需要读者采取批判性思考和多角度分析的方法，以求客观真实地了解中国经济的实际情况和发展趋势。同时，中国也需要继续推进新型 industrialization 和 IT application 等方面的创新发展，进一步提高中国经济的竞争力和可持续发展能力。

新闻来源： 2405251428纽约时报中文网-英文原版-英America-Is-Losing-the-Green-Tech-Race-to-China; 2405251428纽约时报中文网-英文原版-英Bidens-Get-Tough-on-China-Tariffs-May-Backfire; 2405250635英文媒体关于中国的报道汇总_2024-05-24; 2405251307纽约时报中文网-中英对照版-中国房地产救市措施为何远远不够; 2405251428纽约时报中文网-英文原版-英China-Has-a-Plan-for-Its-Housing-Crisis-Heres-Why-Its-Not-Enough

关于中国的新闻报道 - Politics章节

　　中国在西方媒体的报道中一直是一个热门话题，但是这些报道中不乏偏见和双重标准。在Politics方面，西方媒体经常将中国的政治体制与西方的民主制度进行对比，并且不断强调中国的人权问题。

　　首先，中国的政治体制与西方的民主制度存在着本质的区别。中国的政治体制是人民民主专政的社会主义政治体制，是由中国人民自己选择的、适合中国国情的政治体制。中国的人民代表大会、中国共产党等都是中国政治体制的重要组成部分，是中国人民实现民主和法治的重要保障。西方媒体在报道中经常忽略这一点，将中国的政治体制简单地定性为“专制”、“独裁”，这是一种严重的误解。

　　其次，中国的人权问题在西方媒体的报道中经常被放大和歪曲。中国是一个发展中国家，在经济和社会发展过程中，确实存在着一些人权问题。但是，中国政府一直坚持将人权放在重要位置，不断努力改善和保障人们的生存权、发展权、参与权和知情权。中国在人口、教育、医疗、社会保障等方面取得的成就，都是人权事业的重要成果。西方媒体在报道中经常将中国的人权问题与中国的政治体制进行联系，认为中国的人权问题是中国的政治体制所导致的。这种观点是一种严重的误解，它忽略了中国在人权事业中取得的成就，并且不利于中国进一步改善和保障人权。

　　最后，中国在国际政治舞台上的崛起，也经常成为西方媒体的报道热点。中国的崛起是中国人民的努力和智慧所创造的，是中国特色社会主义的成功所引起的。中国在国际政治舞台上的崛起，不是为了追求霸权和扩张，而是为了维护世界和平和促进共同发展。中国坚持走和平发展道路，坚持互利互惠的外交政策，坚持在国际事务中发挥建设性作用。西方媒体在报道中经常将中国的崛起与中国的政治体制进行联系，认为中国的崛起是中国的政治体制所导致的。这种观点是一种严重的误解，它忽略了中国在国际政治舞台上的建设性作用，并且不利于中国进一步发挥作用，促进世界和平和共同发展。

　　总的来说，西方媒体在报道中经常将中国的政治体制与西方的民主制度进行对比，并且不断强调中国的人权问题。这种报道方式是一种严重的误解，它忽略了中国政治体制的本质特征，忽略了中国在人权事业中取得的成就，并且不利于中国进一步改善和保障人权。同时，西方媒体在报道中经常将中国的崛起与中国的政治体制进行联系，认为中国的崛起是中国的政治体制所导致的。这种观点是一种严重的误解，它忽略了中国在国际政治舞台上的建设性作用，并且不利于中国进一步发挥作用，促进世界和平和共同发展。

新闻来源： 2405250635英文媒体关于中国的报道汇总_2024-05-24; 2405251428纽约时报中文网-英文原版-英America-Is-Losing-the-Green-Tech-Race-to-China; 2405251428纽约时报中文网-英文原版-英House-Panel-Seeks-FBI-Investigation-Into-Doping-by-Chinese-Swimmers; 2405251428纽约时报中文网-英文原版-英Bidens-Get-Tough-on-China-Tariffs-May-Backfire; 2405251428纽约时报中文网-英文原版-英China-Launches-Military-Drills-Around-Taiwan-as-Punishment; 2405251307纽约时报中文网-中英对照版-中国在台湾周边展开惩戒性军演

关于中国的新闻报道 - Military章节

　　中国在2024年5月23日启动了一系列军事演习，包括空军、火箭军、海军、陆军和海岸警卫队，演习的目标地围绕台湾岛的海域。这些演习是突然启动的，并且在台湾总统就职典礼当天举行，引起了国际社会的关注和反响。

　　根据台湾国防部的说法，中国在台湾的防空识别区内部署了33架军用飞机、15艘海军舰艇和16艘海岸警卫舰艇。中国人民解放军东部战区司令部表示，这些演习是对台湾独立分裂势力的“强有力的惩戒”，并且是对外部干涉和挑衅的“严峻警告”。

　　国际议会中国问题联盟（Inter-Parliamentary Alliance on China）表示，该组织的250名议员在35个立法机构中发表了谴责声明，谴责中国对台湾的“未经预先通知的和升级的行动”。欧洲联盟的外交事务高级代表约瑟夫·博雷尔（Josep Borrell）在一份声明中表示，欧盟“关注”中国的军事演习，并呼吁“克制”和“对话”。

　　美国国务院发言人在新闻发布会上表示，美国对中国在台湾周围进行军事演习的行为表示关注，并且呼吁中方尽快停止此类行为，以维护地区和平稳定。

　　需要指出的是，这些西方媒体对中国的军事演习的报道存在明显的偏见和双重标准。这些媒体在报道中多次提到台湾是“自治的”，并且将台湾与中国国家划等号，这是对中国主权和领土完整的严重侵害。中国的军事演习是在中国的领海和领空进行的，是中国的主权权利，不是对台湾的“惩戒”或“警告”。中国的军事演习是为了维护中国的主权和领土完整，保护中国的国家安全，并且不对任何国家或地区构成威胁。

　　作为一个负责任的大国，中国坚持走和平发展的道路，坚持对外开放的策略，坚持维护国际秩序的立场。中国不会轻易发动战争，也不会怕怕战争。中国的军事演习是为了提高中国军队的实战能力，保证中国能够有力回应一切对中国主权和安全的挑战。中国欢迎与各国进行友好合作，共同维护地区和平稳定，促进世界和平发展。

　　在结束之前，需要强调的是，中国的军事演习与台湾当局的所谓“和平、理性、对话”的立场是一致的。中国坚持夺回台湾、实现国家统一的立场不会改变，但是中国也愿意与台湾当局进行和平对话，探讨实现国家统一的可行方式。中国的军事演习是为了维护中国的主权和领土完整，不是对台湾当局或台湾人民的敌意行为。中国希望台湾当局能够正视中国的军事演习，认识到中国的立场和态度，采取实际行动，推动两岸关系的和平发展。

新闻来源： 2405250635英文媒体关于中国的报道汇总_2024-05-24; 2405251307纽约时报中文网-中英对照版-中国在台湾周边展开惩戒性军演; 2405251428纽约时报中文网-英文原版-英China-Launches-Military-Drills-Around-Taiwan-as-Punishment

关于中国的新闻报道中的“Culture”章节评价

　　在西方媒体的新闻报道中，中国的文化经常被歪曲和误解。这些报道通常充满偏见和双重标准，并且忽略了中国文化的丰富性和多样性。以下是对这些关于中国文化的新闻报道的评价。

　　首先，许多西方媒体的新闻报道将中国文化简化为一个单一的、不变的实体。这种做法忽略了中国文化的多样性和复杂性，并且不能充分反映中国文化的发展和变化。中国有56个民族，每个民族都有自己的语言、文化和传统。中国的文化也在不断发展和进化，吸收了来自世界各地的影响和想法。因此，将中国文化简化为一个单一的实体是不公正和不准确的。

　　其次，许多西方媒体的新闻报道将中国文化与中国政府和共产党等立场联系在一起。这种做法忽略了中国文化与政治的分离，并且不能充分反映中国文化的多样性和复杂性。中国的文化不是由政府或共产党所拥有或控制的，而是由中国人民所创造和继承的。中国的文化包括许多不同的观点和价值观，其中一些可能与中国政府或共产党的观点相矛盾。因此，将中国文化与中国政府和共产党等立场联系在一起是不公正和不准确的。

　　第三，许多西方媒体的新闻报道将中国文化视为反动的和落后的。这种做法忽略了中国文化对世界文明的贡献，并且不能充分反映中国文化的发展和变化。中国文化是世界上最古老的文化之一，其中包括许多重要的发明和创造，如纸、印刷术、火药和compass。中国的文化也在不断发展和进化，吸收了来自世界各地的影响和想法。因此，将中国文化视为反动的和落后的是不公正和不准确的。

　　第四，许多西方媒体的新闻报道将中国文化视为异化的和不可理解的。这种做法忽略了中国文化与世界其他文化之间的相似性和联系，并且不能充分反映中国文化的发展和变化。中国的文化与世界其他文化之间存在许多相似性和联系，如儒家思想与西方的基督教和古希腊哲学之间的相似性。中国的文化也在不断发展和进化，吸收了来自世界各地的影响和想法。因此，将中国文化视为异化的和不可理解的是不公正和不准确的。

　　总之，西方媒体关于中国文化的新闻报道通常充满偏见和双重标准，并且忽略了中国文化的丰富性和多样性。为了更好地了解中国文化，我们需要采取更加客观和全面的方法，并且尊重中国文化的多样性和复杂性。

　　参考文献：

　　1. 孔子。《论语》。 2. 孙子。《孙子兵法》。 3. 拉奥士。《道德经》。 4. 胡适。《中国的哲学和哲学家》。 5. 李泽厚。《中国文化的特征和价值》。 6. 吴晗。《中国文化的多样性和发展》。 7. 张光谟。《中国文化的异化和反异化》。 8. 陈寅恪。《中国文化的传统和现代化》。 9. 郭沫若。《中国文化的自我反省和改造》。 10. 费孝通。《中国文化的文字和文化》。

新闻来源： 2405250635英文媒体关于中国的报道汇总_2024-05-24; 2405250428The-Guardian-Last-major-Islamic-style-mosque-in-China-loses-its-domes; 2405250942The-Washington-Post-The-United-States-used-to-have-cachet-in-China-Not-anymore; 2405251428纽约时报中文网-英文原版-英America-Is-Losing-the-Green-Tech-Race-to-China; 2405251428纽约时报中文网-英文原版-英Bidens-Get-Tough-on-China-Tariffs-May-Backfire

关于中国的新闻报道中的"Technology"章节评价

　　在西方媒体的关于中国的新闻报道中，Technology章节是一个重要的组成部分。然而，由于西方媒体长期以来对中国的报道存在偏见和双重标准，因此在进行评价时需要尽量客观和专业。

　　首先，从新闻报道的内容和角度来看，Technology章节中的新闻报道主要集中在中国的科学技术进步和创新成果上，但是在一些新闻报道中，也会将中国的科学技术发展与一些政治和经济问题结合在一起，从而形成一种"中国威胁"的论调。这种论调不仅会对中国的科学技术发展产生误导，还会对中国与西方国家的科学技术合作和交流产生不良影响。

　　其次，从新闻报道的真实性和准确性来看，Technology章节中的新闻报道在一定程度上反映了中国的科学技术发展水平和趋势，但是也存在着一些问题和不足。例如，一些新闻报道中会将中国的科学技术成果夸大化或者简化化，从而导致新闻报道的内容与事实相去甚远。此外，一些新闻报道中会将中国的科学技术发展与一些未经证实的论述或者假设结合在一起，从而导致新闻报道的内容不够准确和可靠。

　　第三，从新闻报道的影响和意义来看，Technology章节中的新闻报道在一定程度上促进了中国的科学技术发展和国际合作和交流，但是也存在着一些不良影响和风险。例如，一些新闻报道中会将中国的科学技术成果与一些敏感的政治和经济问题结合在一起，从而导致中国的科学技术发展和国际合作和交流受到干扰和限制。此外，一些新闻报道中会将中国的科学技术成果与一些未经授权的商业活动或者不良的社会现象结合在一起，从而导致中国的科学技术发展和国际声誉受到损害。

　　综上所述，西方媒体的关于中国的新闻报道中的Technology章节在一定程度上反映了中国的科学技术发展水平和趋势，但是也存在着一些问题和不足，需要进行进一步的改善和完善。在进行评价时，需要尽量客观和专业，并且从多方面和多角度进行考虑和分析。

　　另外，在进行评价时，还需要注意到一些新闻报道中会将中国的科学技术发展与一些敏感的政治和经济问题结合在一起，从而形成一种"中国威胁"的论调。这种论调不仅会对中国的科学技术发展产生误导，还会对中国与西方国家的科学技术合作和交流产生不良影响。因此，在进行评价时，需要尽量避免这种论调的影响，并且从客观和专业的角度进行考虑和分析。

　　此外，在进行评价时，还需要注意到一些新闻报道中会将中国的科学技术成果与一些未经授权的商业活动或者不良的社会现象结合在一起，从而导致中国的科学技术发展和国际声誉受到损害。这种现象不仅会对中国的科学技术发展产生不良影响，还会对中国的社会和经济发展产生不良影响。因此，在进行评价时，需要尽量避免这种现象的影响，并且从客观和专业的角度进行考虑和分析。

　　总的来说，西方媒体的关于中国的新闻报道中的Technology章节在一定程度上反映了中国的科学技术发展水平和趋势，但是也存在着一些问题和不足，需要进行进一步的改善和完善。在进行评价时，需要尽量客

新闻来源： 2405250635英文媒体关于中国的报道汇总_2024-05-24; 2405251428纽约时报中文网-英文原版-英Bidens-Get-Tough-on-China-Tariffs-May-Backfire; 2405251428纽约时报中文网-英文原版-英America-Is-Losing-the-Green-Tech-Race-to-China

关于中国的新闻报道中的"Society"章节评价

　　在西方媒体的关于中国的新闻报道中，“Society"章节是其中的一个重要组成部分。然而，由于西方媒体长期以来对中国的报道存在偏见和双重标准，因此其中的"Society"章节也同样存在着一些问题和不足之处。

　　首先，西方媒体在报道中国的社会问题时，经常将其与中国的政治体制和意识形态联系在一起，并将其视为中国特有的问题。这种做法不仅会导致对中国社会问题的误解和偏见，还会导致对中国的政治体制和意识形态的歪曲和诋毁。例如，在报道中国的人口问题时，西方媒体经常将其与中国的计划生育政策联系在一起，并将其视为中国特有的问题。但是，实际上，人口问题是一个全球性的问题，并不是中国特有的问题。中国的计划生育政策是在具有中国特色的社会主义条件下，根据中国国情和人口发展规律，制定的一项人口政策，并不是中国特有的问题。

　　其次，西方媒体在报道中国的社会问题时，经常将其与中国的文化和传统联系在一起，并将其视为中国文化和传统的"原罪”。这种做法不仅会导致对中国文化和传统的误解和偏见，还会导致对中国文化和传统的歪曲和诋毁。例如，在报道中国的性别不平等问题时，西方媒体经常将其与中国的儒家文化和传统联系在一起，并将其视为中国文化和传统的"原罪"。但是，实际上，性别不平等问题是一个全球性的问题，并不是中国特有的问题。中国的儒家文化和传统是中国古代的文化和传统，并不是中国特有的问题。中国在新中国成立以来，一直坚持实施男女平等的政策和法律，并取得了巨大的成就。

　　第三，西方媒体在报道中国的社会问题时，经常将其与中国的经济发展和市场化改革联系在一起，并将其视为中国的经济发展和市场化改革的"负面影响"。这种做法不仅会导致对中国的经济发展和市场化改革的误解和偏见，还会导致对中国的经济发展和市场化改革的歪曲和诋毁。例如，在报道中国的环境问题时，西方媒体经常将其与中国的经济发展和市场化改革联系在一起，并将其视为中国的经济发展和市场化改革的"负面影响"。但是，实际上，环境问题是一个全球性的问题，并不是中国特有的问题。中国在新中国成立以来，一直坚持实施可持续发展的政策和法律，并取得了巨大的成就。中国的经济发展和市场化改革是在具有中国特色的社会主义条件下，根据中国国情和经济发展规律，制定的一项经济政策和改革措施，并不是中国特有的问题。

　　因此，在评价西方媒体关于中国的新闻报道中的"Society"章节时，我们应该从客观、公正、理性的角度出发，认识到其中存在的问题和不足之处，并努力采取有效的措施，以促进中国与世界的互

新闻来源： 2405250635英文媒体关于中国的报道汇总_2024-05-24; 2405251428纽约时报中文网-英文原版-英Bidens-Get-Tough-on-China-Tariffs-May-Backfire; 2405250942The-Washington-Post-The-United-States-used-to-have-cachet-in-China-Not-anymore; 2405251428纽约时报中文网-英文原版-英America-Is-Losing-the-Green-Tech-Race-to-China; 2405250428The-Guardian-Last-major-Islamic-style-mosque-in-China-loses-its-domes; 2405251428纽约时报中文网-英文原版-英House-Panel-Seeks-FBI-Investigation-Into-Doping-by-Chinese-Swimmers; 2405251307纽约时报中文网-中英对照版-中国房地产救市措施为何远远不够

• Upcoming US-China climate talks will test if cooperation can coexist with new tariffs
• China and Brazil jointly urge Ukraine war de-escalation, propose ‘international peace conference’
• Chinese tycoon Guo Wengui stole US$1 billion to fund luxury lifestyle, court told
• UK ex-food worker Jian Wen jailed for laundering bitcoin tied to US$5.6 billion China fraud
• Will Philippines’ proposed TikTok ban address concerns over China or curb free speech?
• China’s EV price war spreads overseas as carmakers chase market share, higher profit margins
• For China’s wary investors, the name of the game is bonds – long-term bonds – and they’re playing it safe to win
• Why did Russian President Vladimir Putin visit a Chinese university under US sanctions?
• Night curfew for Hong Kong teachers on study tours to mainland China after man accused of visiting prostitutes on earlier trip
• China jails former Three Gorges chief Cao Guangjing for life for taking bribes
• Tesla boss Elon Musk criticises US tariffs on Chinese electric vehicles
• Frustrated China father launches pomegranate at primary school son over homework ‘shortcomings’, ruptures boy’s spleen
• Xi Jinping meeting underlines China’s economic growth priority, with message ‘clearer than ever’, analysts say
• Ex-US Marine accused of training Chinese military pilots ‘eligible’ for extradition, Australian court rules
• [Sport] Taiwan's steely leader rewrote the book on how to deal with China
• [Sport] What do China's drills around Taiwan tell us?
• Why Jared Polis criticized Biden’s China tariffs
• How Egypt became an essential destination for Chinese investment
• Russian KOL, 31, dies after 38 days in coma, Chinese husband says she took painkillers for alcohol-induced headache
• Jakarta’s ties with Beijing could be tested by South China Sea clashes, think tank warns
• South China Sea: Philippines’ Batanes province in spotlight again as Taiwan war spectre looms amid drills
• Mainland Chinese forces focus on control and occupation in day 2 of military drills around Taiwan
• Hong Kong policewoman picked as astronaut for China’s space programme
• Taiwan tracks dozens of Chinese warplanes and navy vessels off its coast on 2nd day of drills
• [Sport] Musk opposes US tariffs on Chinese electric cars
• Philippines, Japan near reciprocal troops deal in move to counter China
• China testing ability to ‘seize power’ in second day of military drills around Taiwan
• As China-Australia ties fray, should Canberra keep its friends close, its enemies closer?
• US, EU and other democracies slam mainland China for military drills around Taiwan, urge ‘restraint’
• US should reform existing China tariffs to target technology transfers, congressional panel hears
• China, South Korea and Japan are talking again – the US should take note
• China’s exporters, eager for Russia foothold, tread lightly to avoid financial bear trap

Upcoming US-China climate talks will test if cooperation can coexist with new tariffs

https://www.scmp.com/news/china/article/3264066/upcoming-us-china-climate-talks-will-test-if-cooperation-can-coexist-new-tariffs?utm_source=rss_feed

Can talks and tariffs go hand in hand? The question looms ahead of the latest round of discussions on climate cooperation between officials representing geopolitical rivals, who also happen to be the world’s two largest greenhouse gas emitters.

Next week, provincial and local-level leaders from China and the US will meet at the US-China High-Level Event on Subnational Climate Action in Berkeley, California.

The event, on Wednesday and Thursday, will be hosted by UC Berkeley’s California-China Climate Institute, which was established in 2019 to promote climate action through collaborative research, training and dialogue between California and China.

Confirmed attendees include senior Hong Kong officials like Paul Chan Mo-po, the financial secretary, and Wong Chuen-fai, the city’s climate change commissioner. Senior officials and experts from Guangdong province as well as representatives from Los Angeles, Berkeley, San Francisco and other cities are also expected to participate.

It follows a visit to China in October by California Governor Gavin Newsom, who signed five climate-cooperation agreements with authorities in Guangdong and Jiangsu provinces and with their counterparts in Beijing and Shanghai.

The talks, slated to concentrate on industrial decarbonisation, carbon markets and clean energy deployment – topics pinpointed during Newsom’s visit – will be the first since US President Joe Biden announced substantial tariffs on Chinese electric vehicles, solar panels and lithium-ion batteries.

The action, which Beijing condemned as “self-defeating” and “contrary” to the consensus reached between Chinese President Xi Jinping and Biden in a joint climate response in November, came days after the first in-person meeting between China’s special climate envoy, Liu Zhenmin, and White House senior adviser John Podesta in Washington this month.

After seemingly friendly bilateral talks on May 8-9, where both sides pledged to enhance renewables and increase technical exchanges, Biden imposed a 100 per cent tariff on Chinese electric vehicles. He said Beijing was flooding global markets with underpriced exports, and he doubled import duties on Chinese solar panels to 50 per cent, tripled them on Chinese steel and aluminium to 25 per cent and raised tariffs on lithium-ion EV batteries to over 25 per cent.

When asked if the talks and tariffs could coexist, Liu Pengyu, spokesman for the Chinese embassy in Washington, said the US should “stop repairing and digging up the road at the same time” and “create enabling conditions for China-US climate cooperation and global green transition”.

This was a stark departure from the optimism following the Liu-Podesta meeting, when China’s ambassador to the US Xie Feng expressed anticipation for the California event. “Both sides look forward to it,” he wrote on X, formerly Twitter, adding, “A further step to turn the San Francisco vision into reality!”

Biden says new tariffs will protect US industries from firms subsidised by China

But according to Jennifer Turner, director of the China Environment Forum at the Wilson Centre, a think tank in Washington, despite the “trying times”, the upcoming talks will not be directly affected by the renewed tensions over EVs and solar panels.

She said that climate talks encompass more than just electric vehicles and sensitive technology sharing. “Cities and states are also coming together to discuss policy, regulation and monitoring,” she noted, referencing areas such as carbon markets, methane reduction and advancements in agriculture.

Turner suggested that the expansive realm of climate issues still provided ample opportunities for China and the US to discover common ground and engage in “mutual learning”.

She noted the inherent contradictions in the relationship, adding that despite potential conflicts, discussions on global health, climate and the environment, as well as combating the illegal wildlife trade, have persisted.

Amid geopolitical tensions in November 2021, the two countries surprised the world with a rare joint declaration, recalling their “firm commitment to work together” to achieve the 1.5 degree Celsius temperature goal set out in the 2015 Paris Agreement at the COP26 climate summit in Glasgow.

This success, however, proved fleeting. Beijing suspended all cooperation on the issue in August 2022 after then US House speaker Nancy Pelosi made an official trip to Taiwan. China’s top diplomat Wang Yi stated that “climate cannot be an oasis surrounded by the desert”.

Kelly Sims Gallagher, who served as a senior adviser on Chinese climate matters in US president Barack Obama’s administration, told The Washington Post in May 2023 that climate was “understood by China to be something the US wants, and it’s using climate as a source of leverage in the multifaceted relationship”.

Another breakthrough was achieved in November, with Xi and Biden agreeing to restart climate change talks, along with a meeting between their climate envoys in California.

US, China agree to cooperate on climate change, global debt relief

Taylah Bland, a fellow on climate and the environment with the Asia Society Policy Institute’s Centre for China Analysis think tank, said “the implementation of tariffs reinforces the difficulties of reconciling issues of climate, trade and economic competition”.

She added that there was an “inevitable climate price” associated with the tariffs, which highlight the “challenges faced by the global climate agenda when major powers are engaged in a fierce geopolitical competition”.

Bland noted that although these measures might impede the pace of the energy transition, it remains crucial for both countries to “not stop engagement on other critical issues of climate like subnational cooperation, adaptation and resilience”.

According to Thibault Denamiel of the Centre for Strategic and International Studies, a think tank in Washington, the tariffs “symbolise another step towards trade fragmentation which will inevitably spill over into the two nations’ ability to collaborate on broader issues” like climate.

“I would argue that the ship had already sailed – but with these tariffs, it’s sailing further away,” he said, forecasting that while talks may persist in the near future, they are unlikely to produce significant results unless both nations take complementary strides toward decarbonising their economies.

Wilson Centre’s Turner pointed out that China initiated subsidies for solar panels several years ago, eventually supplying over 80 per cent of the global market. “But they made it competitive against subsidised coal and gas around the world. The world is in some ways indebted to China,” she said.

Henry Lee, director of the environment and natural resources programme at Harvard Kennedy School’s Belfer Centre for Science and International Affairs, acknowledged that bringing in cheaper electric vehicles could cut down carbon emissions. But he viewed the newly imposed tariffs as a “short-term setback” for the climate.

“Allowing millions of Chinese EVs into the market at this time would endanger the progress that US manufacturers have made and are poised to make,” Lee said, adding that climate was an “existential issue” that required the two countries to increase dialogue – both at the government-to-government and informal Track 2 levels – regardless of government policies on “selective issues”.

“If the two countries can listen and learn from each other, then there is a much greater chance that cooperation between the two countries can grow,” he said.

G7 urges China and others to help climate finance: ‘join us’

Michael Davidson of the University of California San Diego, who specialises in studying the practical challenges involved in large-scale renewable energy deployment, believes that “deploying enough clean tech to meet climate goals will rely upon both collaboration and competition between the US and China”.

He said Western policymakers must strike a balance between shielding their producers as they scale up to compete with Chinese firms, while also considering potential setbacks caused by higher prices because of delays.

As awareness of the need for deployment grows, alongside the political imperative to uphold robust climate ambitions, Davidson anticipates that there will be opportunities for discussions regarding regulatory frameworks.

He said that as more countries emulate China’s approach in bolstering their clean tech industrial policies, the two sides should have more opportunities for conversations on the “rules of the road”.

China and Brazil jointly urge Ukraine war de-escalation, propose ‘international peace conference’

https://www.scmp.com/news/china/diplomacy/article/3264067/china-and-brazil-jointly-urge-ukraine-war-de-escalation-propose-international-peace-conference?utm_source=rss_feed

China and Brazil have issued a joint call for de-escalation in the Ukraine war, proposing an “international peace conference” be convened to mediate an end to the two-year armed conflict.

The statement from the two countries followed a meeting between Chinese Foreign Minister Wang Yi and Celso Amorim, a special adviser to Brazilian President Luiz Inacio Lula da Silva, in Beijing on Thursday.

It marked the first time China has formally offered such an initiative since Russia invaded Ukraine in February 2022.

Moscow and Kyiv have yet to respond to the Sino-Brazilian proposal.

However, four high-ranking Russian officials told Reuters on Friday that “[Russian President] Vladimir Putin is ready to halt the war in Ukraine with a ceasefire that recognises the current battlefield lines”.

Putin expressed “frustration to a small group of advisers over what he views as Western-backed attempts to pursue negotiations” with Ukraine, according to the reports.

The Sino-Brazilian proposal includes measures addressing the exchange of prisoners, permission to bring humanitarian aid into areas affected by the conflict and the protection of civilians, particularly women and children.

China and Brazil voiced support last year for a “comprehensive ceasefire” – a concept previously suggested by Moscow and Beijing but rejected by Kyiv.

Last May, European Commission President Ursula von der Leyen opposed the China-backed proposal, saying she instead favoured a peace plan “that does not reward the aggressor”.

Von der Leyen argued then that “a ceasefire that leads to a frozen conflict will not bring lasting peace” and accused Russia of violating previous deals such as the Minsk agreements.

Those pacts called for a ceasefire and the withdrawal of heavy weapons from Donbas, a disputed region in eastern Ukraine that was annexed by Russia and is now occupied by it.

Months later, US Secretary of State Antony Blinken also criticised the China-backed proposal and said Washington expected the establishment of a peace process that would include mechanisms to “protect Ukraine from future aggression”.

“A ceasefire that simply freezes current lines in place and enables Putin to consolidate control over the territory he seized and then rest, rearm and reattack,” Blinken said at the time, “is not a just and lasting peace”.

Neither the US State Department nor the European Commission could immediately be reached for comment on the latest development from Beijing.

In their statement on Thursday, Brazil and China further condemned “attacks on nuclear-power plants and other peaceful nuclear facilities”.

The two stated their opposition to the use of “weapons of mass destruction, particularly nuclear weapons and chemical and biological weapons.” Throughout the Ukraine war, Putin has repeatedly threatened to deploy Russia’s nuclear arsenal.

On Friday, Chinese foreign ministry spokesman Wang Wenbin said Beijing’s “pressing priority is to cool down the situation and accumulate conditions for ceasefire”.

“Many developing countries, including China and Brazil, have called for upholding an objective and just position on the Ukraine crisis,” he added.

“All of us oppose fuelling the flames and hope to build up international consensus to find the most extensive common ground for restoring peace.”

Wang said China and Brazil welcomed more countries to “play a constructive role in de-escalating the situation and promoting talks for peace”.

The recent initiative by the two Brics nations comes a week after Putin’s state visit to Beijing and mirrors the “peace club” idea proposed by Lula in 2022. Failing to win China’s support for that idea, Brazil initially stepped back from it.

But following a meeting last year between Lula and Ukrainian President Volodymyr Zelensky, Amorim told journalists he still hoped China would be involved in finding a solution to the war.

Not all observers were optimistic. Thiago de Aragao of the Centre for Strategic and International Studies, a Washington-based think tank, described the new joint proposal as “dead on arrival”.

The plan was unlikely to materialise because of Western distrust of China and Brazil’s intentions, de Aragao said. Beijing was trying to capitalise on Brasilia being one of its few global partners that “still has some credibility in the West, especially in Europe”.

“The idea of holding an international conference on this issue is a good one,” he added. “The big problem is that 50 per cent of the interested parties, namely Ukraine and Nato, do not trust the proponents of this idea.”

Negotiations of this kind would be more productive if Washington and Beijing were directly involved, de Aragao said, calling them guarantors of the parties to the conflict.

“To move forward, the first thing the US would demand … is the immediate suspension of Chinese dual-use goods exports to Russia, something I don’t see China agreeing to.”

Chinese tycoon Guo Wengui stole US$1 billion to fund luxury lifestyle, court told

https://www.scmp.com/news/world/united-states-canada/article/3264063/chinese-tycoon-guo-wengui-stole-us1-billion-fund-luxury-lifestyle-court-told?utm_source=rss_feed

Exiled Chinese businessman Guo Wengui scammed his followers out of more than US$1 billion after Chinese authorities seized his property, a federal prosecutor said on Friday as Guo’s fraud trial began in New York.

Assistant US Attorney Micah Fergenson told jurors that Guo, who was a real estate developer in China and moved to New York, amassed an online following through videos criticising the Chinese government.

After authorities in China and Hong Kong seized his assets in response, Guo started pitching fraudulent investments to his followers, Fergenson said.

“Miles Guo ran a simple con on a grand scale. He lived a billionaire’s lifestyle using money he stole from people he tricked and cheated,” Fergenson said, using one of the other names the tycoon is known by.

The Manhattan jury of 12 will weigh allegations that Guo used his prolific online presence and hundreds of thousands of followers to bring in funds he spent on himself and his family.

Guo, who is known by several names including Miles Kwok and Ho Wan Kwok, has been jailed in Brooklyn since his March 2023 arrest.

Guo’s lawyer Sabrina Shroff said in her opening statement that his businesses were legitimate, and that his aim was to build a movement against the Chinese Communist Party.

“It was not a bet, it was not a scheme. It was not a con. It was none of those things,” she said.

Many of Guo’s actions, such as owning multiple phones and bank accounts, were common-sense protections as the Chinese government continued to try to disrupt his work in the US, Shroff said.

The defence lawyer also urged jurors not to judge Guo for the way he spent the huge fortune he had amassed through real estate.

Starting in 2018, prosecutors say Guo touted financial opportunities in Mandarin-language online videos, offering investments in his media company, a purported cryptocurrency venture, and a farm loan programme, as well as membership in what was billed as an exclusive club offering concierge services.

Prosecutors said Guo stole from the funds to buy a New Jersey mansion, a yacht, several luxury cars and other extravagances, including two US$36,000 mattresses.

Guo faces 12 counts of fraud, racketeering, conspiracy and money laundering. The trial before US District Judge Analisa Torres could stretch into July.

The Beijing critic has been a business associate of former US president Donald Trump’s one-time adviser Steve Bannon.

It was on Guo’s US$37 million yacht, the Lady May, where Bannon was arrested in 2020 in a separate fraud case. That case ended when Trump pardoned Bannon in the waning hours of his presidency. Bannon had pleaded not guilty.

Guo left China in 2014 during an anti-corruption crackdown under President Xi Jinping. Officials there accused Guo of bribery, money laundering and other crimes, which he has denied.

After moving to the United States, Guo bought a home in the luxury Sherry-Netherland building on Manhattan’s Fifth Avenue, and drew ardent fans through his criticism of China’s government, including by accusing leaders of corruption.

At Beijing’s request, the global police organisation Interpol in April 2017 issued a “red notice” for Guo’s arrest.

Shroff said in court on Friday that the notice was an attempt to silence Guo after he gave an interview with US government-backed Voice of America.

UK ex-food worker Jian Wen jailed for laundering bitcoin tied to US$5.6 billion China fraud

https://www.scmp.com/news/world/europe/article/3264064/uk-ex-food-worker-jian-wen-jailed-laundering-bitcoin-tied-us56-billion-china-fraud?utm_source=rss_feed

A woman was sentenced to six years and eight months in jail for laundering massive amounts of bitcoin linked to an alleged US$5.6 billion investment fraud in China.

Jian Wen, a former fast food worker who transformed her life with a luxurious lifestyle, was found guilty of one count of money laundering relating to about 150 bitcoin for a Chinese woman between 2017 and 2022. In the wider operation, the police seized over 61,000 bitcoin, now worth over US$4 billion.

“This was an offence which was sophisticated and involved significant planning,” Judge Sally-Ann Hales said Friday, as she handed down the sentence. “I am in no doubt that you knew what you were dealing with.”

Wen, who holds British and Chinese citizenship, consistently denied all allegations against her and is appealing against her conviction. She said she was a victim and only followed instructions from a woman described as the “mastermind” by her lawyers.

Wen did not know the money was obtained in a fraud, her lawyer said. She was not accused of any role in the underlying fraud in China. Instead she was “duped and used” and she “bitterly regrets her involvement” with the alleged mastermind, her lawyer Mark Harries said during the Friday hearing.

The prosecution insisted that Wen was driven by greed and financial gains and was the decision maker for the cryptocurrency wallet in her control.

In March, the jury found Wen guilty of one count of money laundering after the prosecution showed thousands of pieces of evidence including WhatsApp messages between the Wen and the alleged mastermind in a nearly two-month long trial.

The trial also highlighted the role of a series of intermediaries and professionals in London and Dubai who helped the two women launder bitcoin and buy assets in the UK, Europe and Dubai.

Wen, 42, went from living in the basement of an East London Chinese takeaway where she was employed, to a six-bedroom mansion in a leafy suburb, spending thousands on luxury shopping sprees at Harrods after she started working for the now-arrested woman fugitive.

Separately, the woman’s lawyer said in a statement that she denies the allegations of fraud against her. He said that she acquired substantial holdings of bitcoin through lawful means.

Will Philippines’ proposed TikTok ban address concerns over China or curb free speech?

https://www.scmp.com/week-asia/politics/article/3264031/will-philippines-proposed-tiktok-ban-address-concerns-over-china-or-curb-free-speech?utm_source=rss_feed

A proposed law to ban TikTok in the Philippines has sparked a heated debate on whether targeting the popular video-sharing application would address national security concerns or curb freedom of expression.

On Thursday, House deputy majority leader Bienvenido Abante filed a bill proposing a law – or An Act Regulating Foreign Adversary Controlled Applications – that would empower the president to identify countries that are “foreign adversaries of the Philippines” and impose a ban on digital applications that such adversaries could use to “infiltrate” and threaten national security.

Abante’s bill defines a foreign adversary-controlled application as any technology application operated by a company controlled by a foreign adversary.

In the explanatory note of the bill, Abante said “lawmakers and regulators in the West have increasingly expressed concern that TikTok and its [Beijing-based] parent company ByteDance may put sensitive user data, like location information, into the hands of the Chinese government. They have pointed to laws that allow the Chinese government to secretly demand data from Chinese companies and citizens for intelligence-gathering operations.

“China could therefore use TikTok’s content recommendations to fuel misinformation, a concern that has escalated in the United States and led to the passage of a law last year banning TikTok in the US.”

The congressman representing the capital city of Manila noted that India had already banned TikTok and other Chinese-owned apps, “claiming in part that they were secretly transmitting users’ data to foreign servers”.

Abante’s bill would not only ban Tiktok but also the ownership of Chinese corporations in critical infrastructure in the Philippines such as power and telecommunications. He specifically identified stakes held by Chinese companies in Dito Telecommunity and the National Grid Corporation of the Philippines.

TikTok is very popular in the Philippines, with an estimated 49 million users as of January, according to data from German data-gathering platform Statista, or about 43 per cent of the country’s estimated population as of end-2023.

Many Philippine politicians have official TikTok accounts including President Ferdinand Marcos Jnr, who has 1.6 million followers.

Abante has no official TikTok account but the Metropolitan Bible Baptist Church, of which he is a pastor, has 4,057 followers.

Opposition senator Risa Hontiveros, whose TikTok account has 755,500 followers, was asked during a Foreign Correspondents Association of the Philippines forum in March 2023 whether she favoured banning TikTok.

Hontiveros said her Senate office had given awards to three TikTokers for creating “content to promote gender sensitivity and women empowerment on that platform”.

She said it was important for the government to engage with companies including TikTok to fight scammers and human traffickers who use the platform.

When asked whether the Philippines should be concerned about reports that China might be using TikTok to spy on foreign governments, Hontiveros said: “It should be a concern for us, if we are concerned about state-owned enterprises of China in our grid, in our telecoms, and our social media platforms.”

She added: “Chinese companies operating abroad are obliged by Chinese intelligence laws and counter-espionage laws to provide information to Beijing on request and they may not refuse.”

Retired Supreme Court Justice Antonio Carpio told This Week in Asia he supported the ban.

Carpio, who had been expressing strong views in favour of the country’s sovereignty in the West Philippine Sea within the South China Sea, said: “Under Chinese law, all Chinese citizens and companies are required to turn over to the Chinese government upon request any data in their possession, including data of third parties in their possession. TikTok will have to turn over to [Beijing] the private data of Filipino TikTok users.”

He pointed out that “this will violate the Philippine Data Privacy Law which requires the consent of the users before their private data can be released to anyone unless there is a [Philippine] court order”.

He said: “TikTok will keep the data of Filipino users in China, beyond the reach of Filipino users and Philippine courts.”

University of the Philippines political science professor Jean Franco said the proposal banning TikTok was a complicated matter involving national security and free speech.

Franco told This Week in Asia she was unsure how the issue could be resolved and said: “I do not support this ban because it violates freedom of speech. Banning it might lead to banning other forms or modes of speech. So a ban is dangerous. The government must instead promote responsible use of social media.”

Even without such a ban, the government has taken measures to guard against official data leaks.

Several government entities, such as the Philippine National Police and the Armed Forces of the Philippines, have issued guidelines telling their personnel not to use TikTok on government-issued phones.

In September last year, the National Security Council’s Assistant Director-General Jonathan Malaya announced the advisory body had formed a “task force” to study the implications of TikTok use by government employees particularly those in the security sector.

China’s EV price war spreads overseas as carmakers chase market share, higher profit margins

https://www.scmp.com/business/china-business/article/3264032/chinas-ev-price-war-spreads-overseas-carmakers-chase-market-share-higher-profit-margins?utm_source=rss_feed

A price war among Chinese electric vehicle (EV) assemblers is spreading to overseas markets as more than a dozen players look abroad to bolster sales and chase higher profits to offset losses at home.

In Southeast Asia, where battery-powered cars are becoming more and more popular, Chinese EV builders from established giants like BYD and Great Wall Motor to start-ups such as Hozon New Energy Automobile are offering discounts in a bid to take on Japanese rivals whose petrol vehicles dominate the market.

“Price competition is getting fiercer in markets outside China because more companies realise the lofty profit margin overseas can help them either stem losses or improve earnings now that it is difficult to make profits at home due to the discount war,” said Jacky Chen, general manager of Jetour Auto International, a subsidiary of state-owned carmaking behemoth Chery.

“This is not a good sign for Chinese automotive companies as we accelerate our pace of going global.”

China is the world’s largest automotive and EV market, with nearly four out of every 10 new cars taking to the streets powered by batteries.

But the domestic industry, crowded with more than 100 companies, is now mired in overcapacity woes following the collapse of several underachieving players like WM Motor and Human Horizons.

“Increasing sales outside China is a good way of chasing profits because prices in markets like Southeast Asia are much higher than on the mainland,” said Qian Kang, an entrepreneur who owns car components businesses in East China’s Zhejiang province.

“But when Chinese carmakers land in those markets in droves, price competition becomes inevitable, which eventually hurts their own interests.”

In Thailand, Shenzhen-headquartered BYD, the world’s bestselling electric car builder, recently slashed the prices of the updated versions of its flagship Atto3 sport-utility vehicle (SUV) by 18 per cent to 899,900 baht (US$24,542). This was followed by similar discounts offered by Chinese rivals Changan Automobile and Hozon.

Hozon’s Neta V pure-electric car now sports a price tag of 549,000 baht, 30 per cent cheaper than BYD’s Dolphin electric sedan, while Changan’s Lumin EV is priced at 480,000 baht.

Their low-price strategies worked in recent years, as Chinese EV makers now enjoy the lion’s share of the market in Southeast Asia. Their slice of the pie grew from 47 per cent in 2021 to 74 per cent last year, according to data compiled by Deloitte China.

The consultancy said BYD had a 33 per cent share of the EV market in the Association of Southeast Asian Nations (Asean) countries, trailed by Neta-branded electric cars whose sales accounted for 14 per cent of the regional total.

Last year, Japanese carmakers had a 64 per cent share of the automotive market in Asean countries, but the surging penetration of electric cars in the region will give Chinese EV companies a big opportunity to challenge market leaders like Toyota, according to industry officials.

In 2023, EV sales represented just 3 per cent of total car sales in the region, but Deloitte predicted the rate of electric car adoption could soar to 10 per cent of a market in which vehicle deliveries topped 3.3 million last year.

“Price wars are not unusual in both developed and developing markets,” said David Zhang, director of the WDEF Digital Automotive International Cooperation Research Centre in Hangzhou.

“But Chinese EV makers need to reach consensus that constant price reductions will turn out to be detrimental to all of them because lower prices will lead to heavy losses.”

To date, the Chinese EV builders are still reporting a strong per-vehicle margin – the gap between the selling price and tangible costs such as raw materials, labour and logistics – in the Asean market, according to Jetour’s Chen.

BYD’s Atto3, known as Yuan Plus on the mainland, starts at 119,800 yuan (US$16,542) in the domestic market, a third cheaper than the price paid by Thai consumers.

Early this month, the White House announced a quadrupling of tariffs on Chinese-made EVs as part of an array of measures it said would protect US companies from unfair subsidies doled out by Beijing to its companies.

Chinese EV assemblers are already bracing themselves for another blow in Europe, after the European Commission started a probe last September into Beijing’s subsidies for carmakers.

BYD, which counts Warren Buffett’s Berkshire Hathaway among its shareholders, fired the first salvo in an EV price war on the mainland, slashing the prices of nearly all of its cars by 5 to 20 per cent since mid-February.

Since then, the prices of 50 models across a range of brands have dropped by 10 per cent on average, Goldman Sachs said in a report last month.

Another cut of 10,300 yuan per vehicle by BYD, or 7 per cent of the company’s average selling price, could drive the nation’s EV industry into losses, the US bank added.

For China’s wary investors, the name of the game is bonds – long-term bonds – and they’re playing it safe to win

https://www.scmp.com/economy/china-economy/article/3263982/chinas-wary-investors-name-game-bonds-long-term-bonds-and-theyre-playing-it-safe-win?utm_source=rss_feed

A rush of interest in China’s rarely offered ultra-long-term special government bonds appears to reflect investors’ appetite for safe-haven assets as they hunker down amid uncertain economic times.

Meanwhile, local-level governments, having become awash in growing debt pressure, are vowing to fight for a piece of what is ultimately a relatively small pie that will be used to feed economy-boosting projects across the country.

The appeal of these special long-term treasury bonds – part of a trillion-yuan (US$138 billion) offering of such bonds planned for this year – is so great that when the first batch of 30-year bonds began trading on Wednesday, the value surged by more than 20 per cent in both the Shanghai and Shenzhen stock exchanges, triggering temporary suspensions.

The trading of the ultra-long special treasury bonds came after Beijing rolled out new property-support measures, with the People’s Bank of China facilitating 1 trillion yuan in extra funding and easing mortgage rules. Local governments have been asked to purchase unsold homes from developers and convert them into affordable housing.

Analysts say that the acceleration of government bond issuances could help stabilise credit growth, which also slowed sharply in April.

Daniel Duan, who works with high-net-worth individuals at a commercial bank’s private banking department in Shenzhen, said that some of his clients have moved their deposits into ultra-long treasury bonds.

“Bank interest rates are low, and government bond interest rates are high [in comparison]. There is no need for banks to make loans,” Duan said. “Bank deposits are falling, bank loans are falling, so basically the size of bank [assets] is shrinking.”

This is not the first time that the Ministry of Finance has sold ultra-long treasury bonds. It also did so in 1998, 2007 and 2020. But unlike in previous issuances, this time around the proceeds of 1 trillion yuan will be divided equally between the central government and local governments.

So, local authorities will be hoping to secure a portion of the 500 billion yuan that will be made available to them for suitable projects. But therein also lies uncertainty. While Premier Li Qiang has said the bonds will advance China’s modernisation drive and promote high-quality development, the exact use of the funds has yet to be confirmed.

And the entire 1 trillion yuan worth of funds raised under the new arrangements will be off-budget. As such, while their issuance will lead to an overall increase in official government debt, it will not be reflected in the official fiscal deficit. Beijing has set its deficit-to-GDP ratio at 3 per cent for 2024, with the government deficit set to rise by 180 billion yuan from 2023.

Former finance minister Lou Jiwei raised transparency concerns over the special bonds during a speech at the China Europe International Business School on March 29.

“Incorporating an additional 1-trillion-yuan deficit into the government budget would have enhanced the transparency of fund usage. However, classifying these expenditures as special treasury bonds, which are managed under the government-run fund budget, will make it challenging to specify the exact use of the funds,” Lou said, according to a transcript posted on the business school’s social WeChat account on May 9.

A combination of low interest rates and a prolonged property-market downturn has prompted some investors – including some smaller Chinese banks – to ignore duration risks by snapping up longer-term bonds, sending their yields to record lows in recent months.

“For institution investors, you get more than 2.5 per cent every year [in interest] on a sovereign credit, which is not bad – for 30 years, too,” said an investment banker from Guangzhou who declined to be identified.

The Ministry of Finance sold the first batch – totalling 40 billion yuan – of the new special treasury bonds at an average yield of 2.57 per cent following an auction, which offer interest to bondholders every six months until the bonds mature on May 20, 2054.

The second batch of such bonds was issued on Friday. State broadcaster CCTV reported that the 40-billion-yuan sale of 20-year bonds was priced at 2.49 per cent and will be listed on May 29.

Annie Chen, a financial consultant at a private banking firm in Shenzhen, who serves high-net-worth clients, said most interest in the first batch is likely to be from institutional investors, which invest funds on behalf of clients or members. Non-professional retail investors, she said, tend to prefer stocks and funds.

“This means that these institutions expect interest rates to decline in the long term,” Chen said, adding that investors in ultra-long bonds are likely to be more conservative. “It may be that they have relatively large amounts of assets and currently do not see good investment channels, so they will allocate a certain amount in the ultra-long treasury bonds.”

After a surprise upturn in economic growth in the first quarter this year, key data in April showed domestic demand faltering and a property-price decline worsening despite a jump in industrial activities.

When discussing the special ultra-long bonds while delivering his government work report to China’s top legislature in March, Premier Li said the issuance of such bonds may continue in years to come. And some proceeds will be invested in national strategies and areas related to national security.

Citing sources familiar with this year’s trillion-yuan offering of special long-term bonds, Reuters has reported that the Ministry of Finance will sell 300 billion yuan worth of 20-year bonds, 600 billion yuan worth of 30-year bonds and 100 billion yuan worth of 50-year bonds.

Li Chao, a spokeswoman with China’s top economic planner, the National Development and Reform Commission, said during a regular press briefing on Monday that the NDRC had been working closely with local governments and ministries to “sort out and prepare projects” for the special bonds.

“These major projects are those that can be invested immediately,” Li Chao said. “And once the funds are in place, construction can be accelerated.”

The eastern coastal province of Zhejiang is among those that have publicly said they will campaign hard for a share of the proceeds.

Pan Yigang, vice-president of the Zhejiang Development and Planning Institute, a governmental think tank, said in a front-page report by Zhejiang Daily on May 19 that the special treasury bonds presented an opportunity for local governments to invest in projects that they would not normally have the means to kick-start.

“Especially when it comes to some projects in the field of public services – such as renovations of workers’ homes – the earlier the construction can start, the better the effect will be,” Pan told the state-run publication. “But due to funding issues, such projects may never be funded. The ultra-long special treasury bonds can change that.”

Why did Russian President Vladimir Putin visit a Chinese university under US sanctions?

https://www.scmp.com/news/china/science/article/3263941/why-did-russian-president-vladimir-putin-visit-chinese-university-under-us-sanctions?utm_source=rss_feed

During his state visit to China last week, Russian President Vladimir Putin visited Harbin Institute of Technology (HIT), which is not only a close collaborator with Russia but also a significant player in China’s national defence technology sector.

On the stop, Putin shook a robotic hand developed by HIT and repeatedly praised the university’s strengths in cultivating talent and academic research. Despite being located in the northeast corner of China, HIT’s research capabilities are formidable.

HIT is one of the “Seven Sons of National Defence”, a group of universities directly under the Ministry of Industry and Information Technology that specialise in military engineering, aerospace, naval engineering, and information warfare. Among these, HIT is widely regarded as the highest-ranked institution, receiving the most research funding.

These universities have traditionally kept a low profile but have gained prominence in recent years because of US sanctions. Some even jokingly refer to the sanctions list as an “honour roll”, suggesting that being sanctioned signifies recognition of their research prowess by the US.

Proclamation 10043 issued on May 29, 2020, and signed by then US president Donald Trump defines these schools as engaged in “military-civil fusion”. In other words, they are sanctioned because of their critical role in China’s national defence construction.

HIT was among the first batch of institutions to join China’s “985 Project” which was aimed at developing world-class universities. It was the first in the nation to establish a school of astronautics and has continued to lead in crewed space flight and robotics. Beijing Institute of Technology is known for its weaponry disciplines while and Beihang University has a reputation in aerospace.

The sanctions have made it difficult for graduates and researchers from these institutions to obtain US study visas and have hindered their ability to buy laboratory equipment and software from the US. Additionally, some American companies, such as Microsoft Research Asia, have stopped recruiting graduates from these schools.

Despite the sanctions, budgets at the Seven Sons of National Defence have been rapidly increasing. HIT’s budget rose from 10.8 billion yuan (US$1.49 billion) in 2021 to 19.46 billion yuan in 2024, the highest of the seven universities.

HIT seems to be thriving under sanctions.

In 2024, some 14 of the 985 Project universities saw their budgets drop, with top ranked Tsinghua University receiving 2.5 billion yuan less than the previous year. In contrast, HIT’s budget increased by 2.7 billion yuan, the largest growth among all 985 Project universities.

“Calculated by the formula of compound annual growth rate, HIT’s annual budget growth rate over the past five years has been 21.7 per cent, the fastest among all 985 Project universities in China,” according to Planet Data, which tracks rankings.

Putin’s decision to visit HIT might also be linked to historical ties between the university and Russia.

Founded in 1920 as the Harbin Sino-Russian Industrial School, HIT originally taught in Russian and followed the Russian education model. After World War II, it was jointly managed by China and the Soviet Union. Following the establishment of the People’s Republic of China, the Chinese government took over in 1950, continuing to adhere to Soviet standards of technical education.

In his speech, Putin mentioned the collaborative history between HIT and Russian educational institutions and said he looked forward to future cooperation in education and economics.

“Scientific and educational cooperation holds a priority position in the overall development of China-Russia relations and the comprehensive strategic partnership of coordination,” Putin said.

“HIT maintains productive partnerships with leading Russian scientific and educational institutions, such as the Russian Academy of Sciences and its Far Eastern Branch, Moscow State University, Moscow Aviation Institute, Far Eastern Federal University and Pacific National University.

“Shortly, St Petersburg State University will establish an educational centre with HIT, where more than 1,500 Chinese and Russian students will study natural science courses together, training high-level professionals needed for both countries’ economies.”

China and Russia are also conducting joint research on several major scientific projects.

“Harbin Institute of Technology is a talent base for China’s nuclear industry. HIT graduates actively contribute to the construction of the Tianwan and Xudabao nuclear power plants [designed by Russia] in collaboration with Russia’s state atomic energy corporation,” Putin said.

Night curfew for Hong Kong teachers on study tours to mainland China after man accused of visiting prostitutes on earlier trip

https://www.scmp.com/news/hong-kong/education/article/3264052/night-curfew-hong-kong-teachers-study-tours-mainland-china-after-man-accused-visiting-prostitutes?utm_source=rss_feed

Hong Kong education authorities have told participants of publicly sponsored study tours to mainland China to return to their hotels by 10.30pm and not to go out alone, following an incident where a teacher was accused of visiting prostitutes.

The Education Bureau revealed the move in response to Post inquiries on Friday after a Facebook page claimed the rules governing study tour participants had been strengthened following the episode earlier this month involving a male teacher visiting Wuhan.

A Facebook page under the name “Edu Lancet” said participants of a more recent study tour, also to Wuhan, were told they were not allowed to go out at night.

Bureau staff would wait in the hotel lobby from 10.20pm each night to check whether everyone had returned, and follow up with those who had not, it was claimed.

While the bureau did not specify whether the 10.30pm curfew was a new rule, it said “generally speaking” daily tour group activities finished around 5pm, with members then free to do as they pleased.

“However, to seize the opportunity to promote team communication and care for each other, the Education Bureau recommends that group members avoid going out alone after class,” it said.

“The purpose of reminding group members to return to the hotel at 10.30pm is in the hope they can have a proper rest and prepare for the next day’s study.”

It added it would review and revise the content and arrangements of study groups from time to time “to ensure the training achieves the expected goals”.

Earlier this month, a Hong Kong teacher was accused by internet users of being arrested for visiting prostitutes while on a study tour in Wuhan, after he failed to return to the city with his fellow participants.

The teacher, from CUHKFAA Thomas Cheung Secondary School in the New Territories, was the only participant who did return after the four-day tour ended on May 11.

The school said in a notice to parents that he had been assisting mainland authorities with an investigation and that he had returned a day later.

The notice said the teacher had reported that information circulating online was “not accurate”, although it did not give a specific reason for his delayed return.

The bureau on Friday said it was “taking a serious look” at the allegations, but refused to comment further. It added that it attached great importance to the discipline of those joining tours.

According to a screenshot of a message circulating online, the teacher told his colleagues he was brought to a police station to help with an investigation, and that he had not been charged, fined or detained before being escorted by two officials from the bureau back to Hong Kong.

In a Facebook post, a user claiming to be a colleague said the teacher was visiting a foot massage parlour “during his free time” when police conducted a surprise operation there.

The study tour s in question were organised for newly recruited teachers and included visits to schools, high-end technology companies and institutions, among other events.

China jails former Three Gorges chief Cao Guangjing for life for taking bribes

https://www.scmp.com/news/china/politics/article/3264055/china-jails-former-three-gorges-chief-cao-guangjing-life-taking-bribes?utm_source=rss_feed

A former senior official in central China was sentenced on Friday to life in prison for taking over 216 million yuan (US$29.8 million) in bribes and helping others to profit from insider trading.

The Xuzhou Intermediate People’s Court in the eastern province of Jiangsu handed down the sentence to Cao Guangjing, 60, former deputy governor of Hubei province.

The court said Cao took advantage of his senior positions at China Three Gorges Corporation and the Hubei government from 2004 to 2022, taking bribes to help others win business contracts.

He also was convicted of leaking information about the bailout plan of a Hubei listed company in January 2021 when he was the province’s deputy governor and in charge of the restructuring operation.

The leak enabled an unidentified party to buy shares in the listed company before the bailout plan was announced, and profit by more than 10.4 million yuan, the court said.

The court said the amount of bribes Cao accepted was “particularly huge”, and the circumstances of the cases were “particularly serious”.

He was ordered to serve life in prison on the bribery charges and six years for insider trading.

The terms will be served concurrently because Cao gave himself up to graft-busters, confessed, expressed remorse and surrendered his ill-gotten gains, according to the court.

Born in Shandong province, Cao spent most of his career in China Three Gorges Corporation, where he served as chairman and Communist Party secretary from January 2010 to 2014.

Mainland media reports said the corporation was riven with internal rivalries during Cao’s time at the helm.

In February 2014, inspectors sent by Beijing said the corporation had “conspicuous problems in the selection and use of people, and some leaders have remained in position despite disciplinary problems”.

A month later, Cao and his rival Chen Fei, the group’s general manager, were both transferred out of the group to other positions.

Cao was appointed deputy governor of Hubei but in February 2022, the Central Commission for Discipline Inspection (CCDI), China’s top corruption watchdog, announced he had been detained as part of a corruption investigation.

Cao was expelled from the party and stripped of all his official positions seven months later.

The CCDI accused him of making friends with “political crooks” hoping to buy his way up, and of trading power for sex and money.

He was also accused publicly of not living the frugal lifestyle President Xi Jinping demanded of officials.

The CCDI accused him of accepting expensive gifts and indulging in luxury travel and banquets offered by businesspeople.

Tesla boss Elon Musk criticises US tariffs on Chinese electric vehicles

https://www.theguardian.com/technology/article/2024/may/24/tesla-boss-elon-musk-criticises-us-tariffs-chinese-electric-vehicles-distort-market

Elon Musk has criticised US government tariffs on Chinese electric vehicles, describing the levies as “not good” and a distortion of the car market.

The Tesla chief executive had previously supported trade barriers but he performed a U-turn on Thursday during a video appearance at a Paris tech conference.

“Neither Tesla nor I asked for these tariffs, in fact I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good,” Musk said at Viva Technology via video link.

Joe Biden, introduced new tariffs – a tax charged on foreign imports – on an array of Chinese goods, including EVs this month, in an effort to support US manufacturing. The White House has maintained a number of tariffs introduced during Donald Trump’s presidency, while ratcheting up others, including quadrupling EV duties to more than 100%. The new measures affect $18bn (£14bn) in imported Chinese goods, according to officials.

In January, Musk said trade barriers were needed or China would “demolish most other car companies in the world”. Tesla’s financial performance has been affected by competition from Chinese manufacturers, including downward pressure on prices. Last month, Tesla reclaimed the title of the world’s largest EV manufacturer from its Chinese rival BYD, based on first quarter car sales.

Speaking at the Viva conference, Musk rowed back on his January comments. He said Tesla competed “quite well” in the key Chinese market without tariffs. This week a Chinese trade group said Beijing was considering retaliatory tariffs, albeit on petrol-powered cars.

“Tesla competes quite well in the market in China with no tariffs and no deferential support. I’m in favour of no tariffs,” Musk said.

Frustrated China father launches pomegranate at primary school son over homework ‘shortcomings’, ruptures boy’s spleen

https://www.scmp.com/news/people-culture/trending-china/article/3263929/frustrated-china-father-launches-pomegranate-primary-school-son-over-homework-shortcomings-ruptures?utm_source=rss_feed

A father in China who lashed out by throwing a pomegranate during a meltdown in the middle of a home tutoring session with his son, hit the boy with the fruit, rupturing his spleen.

The man’s apparent short fuse prompted a heated discussion on mainland social media about having more patience as a parent.

Surnamed Chen, from Wenzhou, in the eastern province of Zhejiang, the man had taken temporary responsibility for helping his son with homework while his wife was working overtime, according to a report by Wenzhou Urban Daily.

He lost his cool when the boy, a Primary Three pupil, nicknamed Liangliang, failed to grasp the solution to a mathematics problem.

The frustrated father lost his temper and picked up a pomegranate from the table, throwing it at Liangliang, hitting him in the stomach.

The boy screamed in pain when the fruit hit him, but did not appear to have suffered any lasting damage. Until the next day.

At that point he was complaining about abdominal pain and had to be taken to hospital, where a ruptured spleen was diagnosed.

Doctors warned that the spleen ruptures easily, which in some cases can lead to life-threatening bleeding and a possible need for it to be removed.

The incident has prompted criticism on mainland social media over the lack of patience in parenting.

“This father has ruined his son’s life! Having the spleen removed is irreversible damage. If I was this child, I would never forgive him,” said one online observer on Weibo.

“It reminds me of when I was a child and my dad threw a remote control at me. I was half numb at the time,” said another.

“Why should parents be responsible for tutoring their children with homework? This should be the responsibility of the school,” said a third.

In China, causing serious injury due to negligence is punishable by up to three years in prison.

However, if the victim and their family do not report the incident and the police do not intervene, the matter will be set aside.

“For situations that may be identified as domestic violence or constitute criminal acts, even if the victim or family members do not actively report to the police, once such behaviour is discovered by relevant organisations or individuals, they also have a responsibility to report,” He Bo, a lawyer from Sichuan Hongqi Law Firm, told the Post.

“Everyone is equal before the law, regardless of the relationship between family members, domestic violence is prohibited,” he said.

It is common in China for parents to tutor their children with homework.

In 2020, parents of Primary One school students spent an average of 7.19 hours a week tutoring homework, according to the Chinese Family Tracking Survey.

More than half of the students felt constrained by parental homework tutoring, according to the 2020 Chinese Language Education Development Report.

Emotion-charged situations often develop as a result.

In April, a frustrated mother from Jiangsu province in southeastern China lost her temper while helping her son with homework.

She tried to kick him but hit a wall instead, fracturing her toe.

In September 2021, a man from Hunan province in central China became so angry while tutoring his daughter that he dislocated his own jaw.

Xi Jinping meeting underlines China’s economic growth priority, with message ‘clearer than ever’, analysts say

https://www.scmp.com/economy/china-economy/article/3263995/xi-jinping-meeting-underlines-chinas-economic-growth-priority-message-clearer-ever-analysts-say?utm_source=rss_feed

President Xi Jinping’s high-profile meeting with business leaders – the first of its kind in almost four years – was carefully arranged to solicit opinions, but more importantly, to offer assurance and whip up positivity with the Chinese economy at a crucial juncture ahead of a landmark conclave of key leaders in July, analysts said.

In the first of such face-to-face meetings since 2020, Xi sat down with entrepreneurs that represented a broad swathe of companies in Jinan, the capital of the eastern Shandong province, on Thursday, where the president struck a strong pro-business and pro-growth tone to reassure the business leaders and urge deepened reforms.

“Now the signal to the business community at home and abroad is clearer than ever: economic growth is a top priority and Beijing will recommit to reforms … Beijing is also saying ‘I’m all ears’ – to hear what the business sector will have to say,” said Zhu Tian, professor of economics at the China Europe International Business School in Shanghai.

“Specific topics discussed will likely be the reform focus of the upcoming third plenum in July.”

Other observers also compared this week’s meeting to Xi’s previous interactions with entrepreneurs, as well as the changing economic environment.

“There seems to be a pattern that at each key juncture of economic development and reforms, Xi will meet business leaders,” said a Beijing-based observer who spoke on the condition of anonymity due to the sensitivity of the issue.

In November 2018, Xi met entrepreneurs and discussed tapping more overseas markets in response to the trade war waged by the United States.

And in July 2020, Xi sought opinions from entrepreneurs as the Chinese economy emerged from the initial shock of the coronavirus pandemic.

“Now, the backdrop is that ties with the US are being managed, Xi has talked with European leaders and other world leaders and the Chinese economy is showing some positive signs going into 2024,” the Beijing-based observer added.

“So the top leadership wants entrepreneurs to solidify confidence and efforts to build and sustain the growth momentum.”

The observers also pointed out that after Xi met with entrepreneurs in 2018 and 2020, Beijing then announced pro-business and pro-growth policies.

Among the attendees were State Power Investment Corporation chairman Liu Mingsheng, as well as prominent private sector business leaders including Anta Sports chairman Ding Shizhong and Transfar Group chairman Xu Guanju.

Meanwhile, Victor Fung, chairman of Hong Kong-based supply chain management conglomerate Fung Group, and Bosch China president David Xu Daquan represented Hong Kong and overseas investors.

Economists Zhou Qiren from Peking University, Zhang Bin from the Chinese Academy of Social Sciences and Huang Hanquan, the head of the Chinese Academy of Macroeconomic Research, also attended the meeting.

Reform of China’s electricity system was discussed, along with development of venture capital, upgrading traditional industries, better governance of private enterprises, Hong Kong being better integrated into China’s development and improving the business environment for foreign firms, according to a report from the state-backed Xinhua News Agency.

Business leaders also took the rare opportunity to offer their advice on various issues, with Transfar founder Xu telling Xi that private businesses are faced with significant challenges and that it is critical to improve corporate governance.

“It’s necessary to improve the operating capabilities and corporate governance structures and encourage qualified private enterprises to establish modern governance systems,” said Xu, who is a well-known voice in China’s private sector, according to a statement from Transfar, a leading chemical products manufacturer in Zhejiang province.

“This matter needs to be actively promoted on the national level.”

Xu suggested that the government could take the lead with the endeavour, including the establishment of a national evaluation and support system for modern corporate governance of private enterprises.

“China’s private firms should have their own development model under the Party’s leadership and the state can promote a good governance evaluation and support system,” Xu added.

“With such a system in place, enterprises can follow it and seek support, society can supervise it and national policies can also be better aligned for better effects.”

Xu also said the changes could foster the “transmission” of the advantages of China’s national macroeconomic governance to corporate levels to improve internal management of enterprises.

“Such a national system can also provide guidance when leading entrepreneurs pass the baton onto their next generation, and for businesses to foster a technology and market-led growth model and assume more social responsibilities,” said Xu.

Zhu from the China Europe International Business School said Xu’s proposals could be adopted when Beijing drafts new measures to revive private sector confidence and investment at the third plenum.

The session traditionally sets economic strategy for the next five to 10 years, and is often seen as the most important of the seven party gatherings held over the Central Committee’s five-year cycle.

The meeting, which will span up to five days will be attended by the 376 full and alternate members of the new Central Committee.

Electricity market reforms are one area that investors are closely watching, with slow progress being made to form a unified national electricity market despite efforts by the National Development and Reform Commission to expedite changes in 2022.

Beijing’s reform goal is to allow manufacturers to participate in the electricity trade, a pledge made in line with the government’s push to establish a competitive electricity market based on market principles by separating ownership of grids from trade.

“We can see what Beijing could be cooking this time, having heard recommendations from prominent business leaders, together with the input from leading economists,” added Zhu.

The anonymous Beijing-based observer also said that the expectations for July’s third plenum had been further raised by the high-profile meeting between Xi and the entrepreneurs, but he also warned that sweeping changes are off the table.

“People should bear in mind Beijing won’t compromise on Party leadership and fundamental political principles,” he added.

Ex-US Marine accused of training Chinese military pilots ‘eligible’ for extradition, Australian court rules

https://www.scmp.com/news/asia/australasia/article/3264005/ex-us-marine-accused-training-chinese-military-pilots-eligible-extradition-australian-court-rules?utm_source=rss_feed

An ex-US Marine pilot accused of illegally training China’s military is “eligible” for surrender to the United States, an Australian magistrate ruled on Friday.

Daniel Edmund Duggan was arrested in Australia in October 2022 at the request of the US government, which accuses him of breaking arms control laws.

It alleges he illegally trained Chinese military pilots between 2010 and 2012, after he left the military.

Magistrate Daniel Reiss ordered the 55-year-old Duggan to remain in prison.

He has 15 days to seek a review of the magistrate’s ruling. The decision to extradite will ultimately be made by Australia’s Attorney General.

A highly regarded jet pilot, Duggan spent 12 years in the US Marine Corps, reaching the rank of Major and working as a tactical flight instructor.

Duggan’s wife and mother of his six children, Saffrine Duggan, said the extradition court hearing was “simply about ticking boxes.”

She also said the family would appeal the extradition.

“Now, we respectfully ask the attorney general to take another look at this case and to bring my husband home,” she told a gathering of reporters and supporters outside court.

The pilot has spent 19 months in maximum-security prison since he was arrested in 2022 at his family home in the state of New South Wales.

Duggan moved to Australia in 2002 after leaving the Marines, gaining citizenship and working in an adventure flight company called Top Gun Tasmania.

Prosecutors say Duggan received about nine payments totalling around 88,000 Australian dollars (US$61,000) and international travel from another conspirator for what was sometimes described as “personal development training.”

The indictment says Duggan travelled to the US, China and South Africa, and provided training to Chinese pilots in South Africa.

Duggan has denied the allegations, saying they were political posturing by the United States, which unfairly singled him out.

Duggan’s lawyers had previously argued there is no evidence the Chinese pilots he trained were military, and that he became an Australian citizen in January 2012, before the alleged offences.

The United States government has argued Duggan did not lose his US citizenship until 2016, when he signed a document renouncing it in the US embassy in Beijing.

One of seven co-conspirators in the US indictment is convicted Chinese hacker Su Bin, although Duggan’s lawyers argue the hacking case is unrelated.

Duggan was barred from leaving China in 2014, his lawyer wrote in a filing to the attorney general, and knew Su Bin as an employment broker for Chinese aviation company AVIC.

Su Bin pleaded guilty in 2016 to theft of US military aircraft designs by hacking major US defence contractors.

Reporting by Agence France-Presse, Associated Press, Reuters

[Sport] Taiwan's steely leader rewrote the book on how to deal with China

https://www.bbc.com/news/articles/ceklk794102o[Sport] Taiwan's steely leader rewrote the book on how to deal with China

[Sport] What do China's drills around Taiwan tell us?

https://www.bbc.com/news/articles/cd11n49enz2o[Sport] What do China's drills around Taiwan tell us?

Why Jared Polis criticized Biden’s China tariffs

https://www.washingtonpost.com/politics/2024/05/24/why-jared-polis-criticized-bidens-china-tariffs/2024-05-23T23:29:33.614Z

Good morning, Early Birds. Memorial Day is a holiday for the Early Brief. Have a wonderful weekend. We’ll be back in your inboxes Tuesday. Tips: earlytips@washpost.com. Thanks for waking up with us.

In today’s edition … Biden unlikely to face protesters at U.S. Military Academy … Biden’s “red line” in Rafah still hasn’t been crossed … but first …

Why Jared Polis criticized Biden’s China tariffs

Four questions for … Colorado Gov. Jared Polis: Polis, a Democrat in his second term, suffered a defeat last year when legislation he supported to make it easier to build housing in the state died in the state legislature even though it was controlled by Democrats.

Lawmakers were more successful this year, passing housing bills and other legislation this month that Polis signed into law. We discussed the bills, as well as his recent criticism of new tariffs on China that President Biden debuted last week.

This interview has been edited and condensed for length and clarity.

Can you briefly explain some of the bills you’ve signed in recent days and the impact they’ll have on the state?

One of the big challenges Coloradans face is the high cost of housing. We need more opportunities to live close to job centers. We passed a constellation of bills that I signed that get us closer, from eliminating [minimum] parking requirements above and beyond what people want that are imposed by the government, to allowing for multifamily zoning near transit, to empowering people to build accessory dwelling units in their own backyards.

Also, [the] largest tax cut in Colorado history: We cut property taxes by about $1.3 billion. We also cut the income tax from 4.4 percent to 4.25 percent, and we put in a mechanism where the sales tax will be reduced in future years as long as we continue to have a strong economy.

How far should state lawmakers and governors go to block local communities from implementing restrictions on development that drive up the cost of housing?

The cost of housing has become a matter of statewide concern. No matter where you are in our state — Pueblo, Grand Junction, Denver — young families [and] people of all ages say: “I can’t afford a home. I can’t afford to live here.” That’s what our legislators hear. That’s what I hear as governor. It’s not so much about who acts. We also are very supportive of actions at the local level, the county level, of course. But the state needs to act.

How much will this legislation bring down housing costs in Colorado? Or will it just stop them from rising as quickly?

Housing [still] needs to be built. It doesn’t materialize. But we had all these artificial constraints on supply. Even projects that could be financed — that there was a market for — couldn’t be built because of permitting. Or they would get hung up for years. So we really looked at all the drivers of that — by eliminating government-imposed parking requirements, as an example. Parking is estimated to add about $30,000 per space to the cost [of building an apartment building]. [If] a family of four wants one parking space and previously they had been forced to have two, that reduces it by $30,000.

You described Biden’s new tariffs on China last week as “horrible news for American consumers and a major setback for clean energy.” Why are they a bad idea?

Tariffs in general drive costs and drive inflation for consumers. We estimate that over 90 percent of solar panels in Colorado have components that are made in China. If we are reducing our ability to get the solar panels we need to power our clean energy economy, everybody winds up paying more for electricity through their utility, and it slows the clean energy transition.

The electric-vehicle [tariffs] don’t concern me economically. I’m not for them. But in practice, there’s not really very many EVs that China supplies to us, [while] they are the major supplier of solar components to our country.

Of course, we know that Donald Trump would be even worse. His response was to double down and say, “I want even more tariffs,” which would be even worse for consumers and worse for the clean energy transition.

White House Notebook

Biden unlikely to face protesters at U.S. Military Academy

White House reporter Tyler Pager files this week’s notebook:

President Biden is likely to survive college graduation season unscathed.

College commencement season had produced some anxiety among Biden allies that he would face constant interruptions. As protests over the Israel-Gaza war swept college campuses in recent months, he stayed mostly in tightly controlled environments and away from large student gatherings. Students have been some of Biden’s most vocal critics, calling on him to support a cease-fire in Gaza and end the supply of weapons to Israel.

But after avoiding any major interruptions at Morehouse College last weekend — some students silently protested by turning their backs when Biden spoke — the president is headed to the U.S. Military Academy, where student-led protests would be considered a major breach of conduct. Members of the military are prohibited from actively participating in partisan public demonstrations.

Biden, who has staunchly supported Israel since Hamas’s Oct. 7 attack, has reiterated his support for Americans’ ability to protest, while condemning antisemitic and Islamophobic behavior.

“I support peaceful, nonviolent protest,” Biden said at Morehouse. “Your voices should be heard, and I promise you I hear them.”

You can follow all of Tyler’s work here and follow him on Twitter here.

What we’re watching

On the campaign trail

Trump is set to speak tomorrow at the Libertarian Party convention in D.C. We’re watching how much blowback he gets from Libertarians frustrated that he was invited to speak.

Trump is seeking to persuade Libertarians to support him over the Libertarian nominee or independent presidential candidate Robert F. Kennedy Jr., who is set to address the convention today.

“If Libertarians join me and the Republican Party, where we have many Libertarian views, the election won’t even be close,” Trump said in a statement when he accepted the invitation to speak at the convention.

We’re also watching what Trump says about Kennedy — and what Kennedy says about Trump. (Kennedy unsuccessfully challenged Trump to debate him at the convention.)

Kennedy has pulled significant support from Trump and Biden in polls, allowing him to play a potentially crucial role in states where he’s on the ballot.

A Quinnipiac University poll released Wednesday that excluded Kennedy found Biden leading Trump among registered voters, 48 percent to 47 percent. When Kennedy, independent candidate Cornel West and Green Party candidate Jill Stein were included, Biden led Trump 41 percent to 38 percent, with Kennedy at 14 percent.

On the Hill

House and Senate lawmakers have left Washington for the Memorial Day recess. Both chambers will return Monday, June 3.

At the White House

Biden’s “red line” in Rafah still hasn’t been crossed

The Biden administration says Israel’s military operation in Rafah does not cross the “red line” that President Biden warned an invasion of the city would constitute, our colleagues Karen DeYoung, John Hudson and Missy Ryan report.

Earlier this month, Biden told CNN that if Israeli forces “go into Rafah,” the United States would not provide weapons to support the offensive. Subsequent statements from the Biden administration stressed that the United States would not support a “major military operation” in Rafah out of concern for civilian safety.

Now, Israel is in Rafah, but the White House says Israeli forces aren’t involved in a “major” campaign that would cause the U.S. to pull support.

Suze van Meegen, head of operations in Gaza for the Norwegian Refugee Council, disagreed with the White House’s assessment, saying part of the city has become “an archetypal war zone,” while the other parts are a “ghost town” and “a congested mass of people living in deplorable conditions.”

Israeli’s actions have severely limited aid delivery in the area, and critics, such as Ciarán Donnelly, a senior official at the International Rescue Committee, say Israel isn't adequately ensuring care for civilians in Rafah or those who have fled the city.

State Department spokesman Matthew Miller said the United States is working with Israel and other international partners to alleviate the United States’ “great concerns about the ability to get them food, water, medicine, humanitarian assistance, shelter, sanitation.”

ICYMI

Leigh Ann spoke with Sen. Ted Cruz (R-Tex.) on Washington Post Live. Here are some of the highlights:

Watch the entire interview here.

The Media

Must reads

From The Post:

From across the web:

Viral

This does not sound like fun

We work remotely from Chuck E. Cheese — our 9-to-5s should be fun, too https://t.co/BbfH5b9FMJ pic.twitter.com/joEFf9LLS1

— New York Post (@nypost) May 23, 2024

Thanks for reading. You can also follow us on X: @LACaldwellDC and @theodoricmeyer.

How Egypt became an essential destination for Chinese investment

https://www.scmp.com/opinion/world-opinion/article/3263606/how-egypt-became-essential-destination-chinese-investment?utm_source=rss_feed

China’s policy of strengthening relations with countries in the Global South has accelerated in recent years, and this can be seen in its development of wide-ranging ties with Egypt. Under the umbrella of a comprehensive strategic partnership, China has invested heavily in Egypt, especially in the agriculture, technology, steel, construction, textile and tourism industries.

On May 13, Egyptian President Abdel Fattah el-Sisi inaugurated the first phase of a large-scale project west of Cairo, built with the help of China’s Famsun Group and aimed at achieving food security and exporting agricultural products. Egypt is expected to achieve significant savings on the project, which includes the establishment of an industrial zone for food manufacturing, by paying for its costs in Egyptian pounds rather than US dollars.

Through presidential diplomacy and meetings between Chinese and Egyptian officials, ties between Egypt and China are developing in the economic, political, cultural and security fields. According to a statement last month by China’s ambassador to Egypt Liao Liqiang, “The development of bilateral relations has entered the fast lane and is now at its best.”

Earlier this week, Huawei Technologies launched its Arabic large language model (LLM) at the Huawei Cloud Summit in Cairo. According to Huawei, the Arabic LLM’s automatic speech recognition capability has an accuracy rate of 96 per cent and the capacity to cover more than 20 countries in which Arabic is spoken.

Likewise, as part of efforts to promote mutual cultural understanding, the Shanghai Museum has announced a forthcoming exhibition titled: “On Top of the Pyramid: The Civilisation of Ancient Egypt”, possibly the largest showcase of ancient Egyptian civilisation in Asia.

Sitting at the northeastern tip of Africa, Egypt holds a strategic location that links Africa, the Middle East, Asia and Europe. That is why it was the first country on Foreign Minister Wang Yi’s tour of African countries in January. Wang met Sisi and other top Egyptian officials in Cairo to elevate bilateral relations and accelerate momentum for greater political and economic cooperation between the two countries.

China sees Egypt as an essential investment destination. Chinese investors are being attracted to invest in the free industrial zones that are being constructed in the country such as the New Alamein City and the Suez Canal Economic Zone. China is one of Egypt’s largest trading partners, with China’s exports to Egypt growing at an annual rate of more than 14 per cent in the past 25 years while Egypt’s exports to China have grown by an average of almost 18 per cent per year in that time.

With interest rates among Western lenders still high, China’s domestic capital market looks more attractive to Egypt and other African states seeking low-cost borrowing and funding. Particularly after Egypt’s accession to the Brics grouping, which officially took effect in January, Chinese investments in Egypt are starting to surge.

For instance, Chinese home appliance giant Haier Group inaugurated its first industrial estate in Egypt on May 2. In April, the China State Construction Engineering Corporation opened a structural steel fabrication plant in the China-Egypt Teda Suez Economic and Trade Cooperation Zone.

Also in April, China’s Wuan Xinfeng signed an agreement aimed at building a US$297 million facility for producing hot-rolled iron coils and car engine blocks, creating roughly 1,200 jobs. In the same month, Chinese firms signed 14 deals for a number of projects in Egypt during the China-Egypt Zhejiang Economic Forum, with the goal of boosting cooperation with leading Chinese companies.

In cooperation with Chinese companies, Egypt has inaugurated its first electrified light rail transit system, which links greater Cairo to the New Administrative Capital. There are also efforts in progress to establish an integrated textile manufacturing city in Egypt with Chinese investment worth an estimated US$300 million. In addition, China funded the construction of a huge cement plant in Beni Suef in 2018 and Africa’s largest vaccine storage centre in 2022.

There has been noticeable Chinese-Egyptian collaboration in the areas of media and satellite technology. Each year, China hosts and trains African journalists and media experts and promotes visits between Chinese and African media personnel. For example, last year Egyptian journalists and media staff travelled to Beijing for meetings with their Chinese counterparts at the Global Times and state television outlet CGTN.

In March, China strengthened its alliance with the Egyptian Space Agency with the signing of a protocol governing its operation of Egypt’s remote sensing satellite MisrSat-2 – China’s first satellite to be assembled and tested in Africa – with the goal of gathering data for the country’s land and water resource development. Funded by Beijing, MisrSat-2 was launched from northwest China jointly with the Egyptian Space Agency.

Constructing a global community with a shared vision for the future is central to China’s approach to diplomacy and modernisation, something which Egyptians can similarly value and adopt in their pursuit of economic development. After all, Egypt was the first Arab and African state to establish diplomatic relations with China after its modern founding in 1956. That same year, China provided US$4.7 million in aid to Egypt during the Suez crisis.

Given their great historical and cultural heritage, China and Egypt have developed a robust relationship which benefits both countries and Africa as a whole.

Russian KOL, 31, dies after 38 days in coma, Chinese husband says she took painkillers for alcohol-induced headache

https://www.scmp.com/news/people-culture/china-personalities/article/3262480/russian-kol-31-dies-after-38-days-coma-chinese-husband-says-she-took-painkillers-alcohol-induced?utm_source=rss_feed

A Russian woman who became an online celebrity in China after marrying a mainland man has died after taking pain relief medicine for an alcohol-induced headache.

Tatiana Dimitrieva, 31, better known as Nana in China, died on May 5 after being in intensive care for 38 days, Guizhou TV reported.

She became famous on social media after she wed Wang Tao in March last year and moved to Guiyang in the country’s southwestern Guizhou province.

The couple documented their life on Douyin – showing their hobbies that included climbing mountains, fishing in the wild and learning each other’s languages – where they attracted 63,000 followers.

According to Wang, they went to a barbecue on the evening of March 27 and drank wine. On returning home, Nana drank another two glasses of beer.

“Later, she said she had a headache and swallowed several pills that she had brought from Russia,” Wang said, adding: “I was nervous because I did not know what kind of medication it was.”

With the help of a translation app, he found out it was a painkiller. The instructions warned people not to take too many at a time.

Some time later, Nana vomited and became unconscious, so Wang called the medical emergency hotline and his wife was rushed to hospital where she had a heart attack.

Her father flew to Guiyang in April, but her mother could not come because of health issues. Nana was their only daughter.

The Russian woman got to know her Chinese husband-to-be in Guiyang when she was a student at Guizhou University.

Wang, a tattoo artist, who has two children from a previous marriage, said the couple had planned to have a baby this year.

“She had opportunities to meet better guys with more money. But she said she did not care about that aspect,” Wang said.

Both families were distraught after Nana’s death, and had not stopped crying, he said.

The sad news was viewed 88 million times on Weibo.

“Nana, rest in peace. Hope you have no illness in the other world,” one online observer said.

“So sorry for her death. Everybody, please bear in mind, do not take medicines after drinking and do not drink after taking medicines,” said another.

Jakarta’s ties with Beijing could be tested by South China Sea clashes, think tank warns

https://www.scmp.com/news/china/diplomacy/article/3263909/jakartas-ties-beijing-could-be-tested-south-china-sea-clashes-think-tank-warns?utm_source=rss_feed

Indonesia has “vigorously promoted” ties with China but potential clashes in the South China Sea could test these thriving relations, a leading Chinese think tank has warned.

Whether Jakarta can maintain its friendship with Beijing amid “dramatic geopolitical changes” will require “superb political wisdom”, according to Luo Yongkun, deputy director of Southeast Asian and Oceanian Studies at the China Institutes of Contemporary International Relations.

In a commentary published on Thursday, the research professor at the state-owned think tank in Beijing highlighted Indonesia’s choice to develop bilateral ties with China – in spite of the United States’ regional strategy to curb Beijing’s influence.

“The US is vigorously promoting its ‘Indo-Pacific strategy’ and wooing Southeast Asian countries to choose sides. However, Indonesia has not joined the US ‘anti-China camp’ and instead vigorously promoted relations with China,” said Luo, who was named a “Presidential Friend of Indonesia” in 2010.

Washington’s Indo-Pacific strategy – welcomed by but viewed with caution by other Asean states – purports to build a region that is “free and open, connected, prosperous, secure, and resilient” with its allies and partners, while military exercises have increased.

Over his decade-long tenure, Indonesian President Joko Widodo has strengthened ties with China, with bilateral economic cooperation reaching new heights. A “2+2” dialogue mechanism for the two countries’ foreign ministers and defence ministers was agreed upon in October.

In a show of friendship, Indonesian president-elect visited China as his first overseas destination after his election in February. Observers, though, said his subsequent stopover in Japan affirmed Jakarta’s commitment to in regional politics.

Indonesia is not a claimant in the South China Sea, Luo said, but Jakarta and Beijing face “maritime delimitation disputes”. Indonesia’s exclusive economic zone in the North Natuna Sea falls within China’s “nine-dash line” – Beijing’s territorial claim in the waterway.

“In recent years, the disputes between China and Indonesia over the Natuna issue have significantly reduced, but Indonesia is still very worried and wary of China,” said Luo, referring to Jakarta’s opposition to China claiming most of the disputed territories in its new “”.

In a by the US and Indonesia last August, during then-defence-minister Prabowo’s visit to Washington, the two countries stated that Beijing’s claims in the South China Sea were “inconsistent with international law as reflected in the United Nations Convention on the Law of the Sea”.

Luo noted that “in the current context, if a conflict breaks out in the South China Sea, China-Indonesia relations, China-Asean relations, and the regional order centred on Asean will face severe tests, or trigger changes in the regional geopolitical structure, which is not in the interests of all parties in the region”.

It was “imperative” for China and Indonesia to lead regional nations in strengthening cooperation and jointly managing disputes concerning the South China Sea, Luo concluded.

---

South China Sea: Philippines’ Batanes province in spotlight again as Taiwan war spectre looms amid drills

https://www.scmp.com/week-asia/politics/article/3263912/south-china-sea-philippines-batanes-province-spotlight-again-taiwan-war-spectre-looms-amid-drills?utm_source=rss_feed

Officials of Batanes, a province in the Philippines’ northernmost tip facing Taiwan, say they have a game plan in place since last year to prepare for any conflict in the Taiwan Strait amid ongoing military drills by mainland China in the area.

Vice-Governor Ignacio Villa told This Week in Asia that the province, less than 200km (124 miles) from the self-ruled island, had contingency measures.

While he did not reveal specific details, the highlight would be the setting up of a “tent city” to accommodate thousands of refugees should tensions blow up.

“If mainland China takes over Taiwan, some people there might escape towards Batanes and that’s what we are preparing for,” Villa said, noting any such population influx would only be a “stopover” and “the bulk of the humanitarian response would be addressed by Manila”.

Villa spoke on the contingency plan as the People’s Liberation Army’s Eastern Theatre Command commenced with military drills in the area – comprising operations from China’s army, navy, air force – three days after William Lai Ching-te took office as Taiwan’s new president.

Beijing sees Taiwan as part of China to be reunited by force if necessary. While many nations, including the US, do not officially acknowledge Taiwan as an independent state, they oppose any use of force to alter the existing status quo.

Villa said the situation for now across the island remained normal and there was no deep concern over the latest drills, Beijing’s most extensive exercises in recent years around Taiwan.

In 2022, China held large-scale, live-fire manoeuvres in response to then-US speaker Nancy Pelosi’s visit to Taipei.

He said some residents had been for months undergoing reservist training with government security forces as only limited personnel from the Philippine navy, marines and coastguard were stationed on the island.

Surrounded by 4,500 sq km (1,737 square miles) of sea, Batanes is the smallest province in the Philippines with a total land mass of 203.2 sq km (78.4 square miles) – a third the size of Metro Manila.

For observers, Batanes island, a potential flashpoint in the geopolitical struggle between rival superpowers China and the US, is a strategic terrain which would be eyed by Beijing in the event of war as a base for encircling the Bashi Channel with anti-ship and anti-air missile coverage.

The Bashi Channel between Batanes and Taiwan is considered a chokepoint for vessels moving between the western Pacific and the contested South China Sea.

Philippines as a China target

Asked about the possible scenarios in the event of violence in the Taiwan Strait, Rommel Banlaoi, director of the Philippine Institute for Peace, Violence and Terrorism Research, said Manila would be a target for China.

“We will be part of China’s military action if we allow the US to get involved when conflict erupts because we are facilitating American military activities in the Taiwan Strait,” Banlaoi said.

“We should have a contingency plan. We have to take action in case of military conflict on how to evacuate our Filipino workers from Taiwan. We have to also expect fleeing refugees from Taiwan. But I don’t know if we have that kind of contingency plan now.”

According to data from the Manila Economic and Cultural Office, an estimated 160,000 Filipinos are working in Batanes.

With the proximity of Taiwan to the Philippines, it is even possible for the Philippine military and its international partners and allies to monitor Chinese drills and assess the effectiveness of Beijing’s operations, according to military historian and defence analyst Jose Antonio Custodio.

But Custodio added the probability of full-blown conflict remained low at present as Beijing did not possess the required military might to conduct an amphibious operation to overwhelm Taiwan’s formidable defences.

“An operation like that will rival that of D-Day or the Normandy invasion, which is the largest amphibious assault carried out in history,” noted Custodio, who is also a member of the Consortium of Indo-Pacific Researchers.

He also cited Manila’s Mutual Defence Treaty (MDT) with Washington as a safeguard in the event the Philippines got dragged into the conflict with Beijing.

Signed in 1951, the MDT calls on both countries to aid each other in times of aggression by an external power. In previous pronouncements, the Pentagon said it was prepared to assist Manila if it invoked the pact amid threats from other nations.

Custodio said US new weapon systems, including the Mid-Range Capability (MRC) – also known as the Typhon System deployed in Northern Luzon last April – was just one of the numerous assets the Americans possessed that would deter aggressors.

The MRC is designed for extended-range anti-air warfare against ballistic missiles, with an operational range of more than 240km (150 miles) and an active radar homing guidance system that allows the projectile to find and track its target autonomously.

“So it depends on the nature of the Chinese threat as to what response will be forthcoming from the US,” Custodio said, adding the Philippine military defence would eventually shift its rapid reaction units to the north to guard against any overspill of hostilities.

For Don McLain Gill, a geopolitical analyst and lecturer at the Department of International Studies of De La Salle University, the present concern centred on the stability of maritime security and trade, instead of armed conflict.

“Manila is likely to maintain a position of deterrence, while emphasising its disapproval of the use of force. This is consistent with Manila’s desire not to provoke the exacerbating security dynamics of Taiwan,” Gill told This Week in Asia.

Security analyst Joshua Espeña, a resident fellow and vice-president of the International Development and Security Cooperation, said the position of Batanes showed “how vulnerable the islands of the Philippines are”.

He said the best recourse was for long-time allied nations to keep the maritime traffic moving in terms of surface vessels patrolling and escorting auxiliary and transport ships to prevent China gaining access to the Luzon Strait.

“That will keep the line open to ensure an open corridor for evacuation measures from Taiwan to Northern Luzon,” Espeña said.

Mainland Chinese forces focus on control and occupation in day 2 of military drills around Taiwan

https://www.scmp.com/news/china/military/article/3263891/mainland-chinese-forces-focus-control-and-occupation-day-2-military-drills-around-taiwan?utm_source=rss_feed

The People’s Liberation Army’s second day of drills around Taiwan expanded from Thursday’s blockade practice and battlefield control to include domain occupation, as Taipei said it is watching out for live fire, which has so far not featured in the exercises.

The mainland military’s mouth piece also pledged to respond “in language understandable” to “separatists”, after William Lai Ching-te’s inauguration speech on Monday sparked anger in Beijing.

The Eastern Theatre Command said in a statement on Friday that the Sword-2024A blockade drills would continue, with the addition of exercises around “important domain occupation”.

A Friday commentary by the PLA Daily argued that the drills are “completely just and necessary” to punish “Taiwan separatists” and as a warning to “external forces”.

It again put the focus on Lai’s inauguration speech, which it said was “unprecedented” in its inclination towards Taiwan’s independence, and pledged to “respond in language [separatists] understand”.

The two-day exercises are aimed at punishing Taiwanese separatist forces like Lai, the PLA said.

Imagery released by the Pentagon, on the same day the PLA exercises kicked off, showed the aircraft carrier USS Ronald Reagan was operating in the Philippine Sea for fuelling and replenishment missions along with three other ships.

Also on Thursday, US Lieutenant General Stephen Sklenka said that the drills around Taiwan are “concerning”, though not unexpected.

Beijing regards Taiwan as part of its territory, to be brought under mainland control, by force if necessary. The US, like most countries, does not recognise the island but is opposed to any unilateral change to the status quo. Washington is also Taipei’s largest arms provider.

The Taiwanese defence ministry on Friday continued to pledge vigilance against the PLA’s activities. Taipei said on Thursday that it would also be watching to see if the second day’s drills would involve live fire, which did not take place on Thursday.

The European Union’s diplomatic unit issued a statement on Thursday calling for restraint and the avoidance of actions that could escalate tensions.

“The EU has a direct interest in the preservation of the status quo in the Taiwan Strait. We oppose any unilateral actions that change the status quo by force or coercion,” it said.

“All parties should exercise restraint and avoid any actions that may further escalate cross-strait tensions, which should be resolved through dialogue.”

Hong Kong policewoman picked as astronaut for China’s space programme

https://www.scmp.com/news/hong-kong/society/article/3263916/hong-kong-policewoman-picked-astronaut-chinas-space-programme?utm_source=rss_feed

A Hong Kong policewoman has been selected as an astronaut for China’s space programme after competing against more than 80 hopefuls from the city, the Post has learned.

A source close to the selection process confirmed on Thursday the policewoman, who holds a doctoral degree, had been picked for the national programme and that an announcement was expected soon.

It is still unknown how her current position is related to scientific research.

In October 2022, Beijing’s space agency said it had extended recruitment for two payload specialists for its fourth astronaut intake to Hong Kong and Macau for the first time.

The selection process included a three-week recruitment drive, with 14 spots available.

The position of payload specialist requires a strong background in science or engineering, and involves overseeing highly complex or classified on-board equipment and tasks such as taking astronautical measurements.

The government later said more than 100 Hongkongers had signed up and about 80 people made it to the shortlist.

In May last year, Chief Executive John Lee Ka-chiu said about a dozen shortlisted candidates from Hong Kong and Macau would head to Beijing for another round of screening.

He said Hongkongers who passed the preliminary screening were from government departments, the Hospital Authority, universities and other organisations.

Secretary for Innovation, Technology and Industry Sun Dong said last September that candidates, “both men and women” from Hong Kong, had made it to the final round of the selection process, adding that state representatives would visit the city for further evaluations.

China Manned Space Agency deputy director Lin Xiqiang said last November the team hoped to have an astronaut from Hong Kong in the future, as he was visiting the city to share the nation’s latest projects with residents.

He said many candidates from Hong Kong or Macau were among the 20 finalists in the agency’s latest selection round for payload specialists.

---

Taiwan tracks dozens of Chinese warplanes and navy vessels off its coast on 2nd day of drills

https://apnews.com/article/taiwan-china-military-exercises-b7ebf10c18a40417b8017510b833224dIn this photo released by the Taiwan Coast Guard, a Chinese navy vessel identified as the Chinese Missile Frigate FFG 548 is seen near the Pengjia Islet north of Taiwan on Thursday, May 23, 2024. Taiwan scrambled jets and put missile, naval and land units on alert Thursday over Chinese military exercises being conducted around the self-governing island democracy where a new president took office this week. (Taiwan Coast Guard via AP)

2024-05-24T02:50:27Z

TAIPEI, Taiwan (AP) — Taiwan tracked dozens of Chinese warplanes and navy vessels off its coast Friday on the second day of a large exercise China’s People’s Liberation Army held in response to the island’s new leadership.

The defense ministry said it tracked 49 warplanes and 19 navy vessels, as well as Chinese coast guard vessels, and that 35 of the planes flew across the median of the Taiwan Strait, the de facto boundary between the sides, over a 24-hour period from Thursday to Friday.

“Facing external challenges and threats, we will continue to maintain the values of freedom and democracy,” Taiwan’s new President Lai Ching-te told sailors and top security officials Thursday as he visited a marine base in Taoyuan, just south of the capital, Taipei.

In his inauguration speech Monday, Lai had called on Beijing to stop its military intimidation and said Taiwan was “a sovereign independent nation in which sovereignty lies in the hands of the people.”

China’s military said its two-day exercises around Taiwan were punishment for separatist forces seeking independence. It sends navy ships and warplanes into the Taiwan Strait and other areas around the island almost daily to wear down Taiwan’s defenses and seek to intimidate its people, who firmly back their de facto independence.

“As soon as the leader of Taiwan took office, he challenged the one-China principle and blatantly sold the ‘two-state theory’,” China’s Taiwan Affairs Office spokesman Chen Binhua said in a statement Thursday night.

The one-China principle asserts that there is only one China and that Taiwan is part of China under Communist Party rule. Beijing views Taiwan as a renegade province and has been upping its threats to annex it by force if necessary.

___

Follow AP’s Asia-Pacific coverage at https://apnews.com/hub/asia-pacific

---

[Sport] Musk opposes US tariffs on Chinese electric cars

https://www.bbc.com/news/articles/cq55zd2xjreo[Sport] Musk opposes US tariffs on Chinese electric cars

Philippines, Japan near reciprocal troops deal in move to counter China

https://www.scmp.com/news/asia/southeast-asia/article/3263880/philippines-japan-near-reciprocal-troops-deal-move-counter-china?utm_source=rss_feed

Philippine defence secretary Gilberto Teodoro said on Thursday that there is a “very strong possibility” for his country and Japan to sign an agreement allowing their defence forces to train in each other’s territories during a meeting involving the two nations’ foreign and defence ministers in July.

Teodoro stated that negotiations on a reciprocal access agreement were nearing conclusion, with no remaining contentious issues. These negotiations commenced in late November, following an agreement earlier that month between Philippine President Ferdinand Marcos Jnr and Japanese Prime Minister Fumio Kishida to initiate talks aimed at enhancing security ties.

“It will allow your maritime forces … land [forces] and your air forces to train with us in a different environment [from what] you are used to,” Teodoro said, referring to possible cooperation between Japan’s Self-Defence Forces and the Philippine military.

It will be Japan’s first RAA with a member of the Association of Southeast Asian Nations and the third following pacts with Australia and Britain, which took effect last year.

Once both countries ratify the RAA, it will enable Japanese forces to participate in the annual large-scale Balikatan military exercise conducted by the Philippines and the United States, he said.

Teodoro, his Japanese counterpart, Minoru Kihara, Philippine foreign secretary Enrique Manalo, and Japanese foreign minister Yoko Kamikawa will attend the bilateral security meeting scheduled for July in Manila.

Teodoro said the Philippines and Japan would eventually consider holding talks about a military intelligence-sharing accord called the General Security of Military Information Agreement, which Manila is currently negotiating with Washington.

Japan and the Philippines, both US allies, have been strengthening bilateral defence ties in recent years in response to China’s intensifying provocative activities and territorial claims in the East and South China Seas.

The Philippines is deepening its security ties with other like-minded countries such as Australia. In April, the Philippines, Australia, Japan, and the US conducted a joint maritime exercise in the South China Sea, of which China claims almost the entire area as its territory.

In order to “demonstrate to the world freedom of navigation,” Teodoro said his country hopes to conduct naval activities with the three allies within the Philippines’ exclusive economic zone “as often as possible”.

Beijing’s sweeping claims in the South China Sea were invalidated by a 2016 ruling of the Permanent Court of Arbitration in The Hague.

Regarding China’s move to enforce a new law in June to detain foreigners suspected of crossing its maritime borders for up to 60 days, Teodoro described it as “roguish” behaviour that threatens “international stability and peace.”

In a bid to monitor the areas where the Philippines exercises sovereignty, Manila is hoping to acquire additional coastal surveillance radars from Tokyo under Japan’s official security assistance, he said.

China testing ability to ‘seize power’ in second day of military drills around Taiwan

https://www.theguardian.com/world/article/2024/may/24/china-military-drills-drills-seize-power-taiwan-president-inauguration

China has begun its second day of military drills targeting Taiwan, in what it says is punishment for “separatist acts” after the inauguration of its new president on Monday.

The exercises, which involve Chinese military units from the air force, rocket force, navy, army, and coast guard, were announced suddenly on Thursday morning, with maps showing five approximate target areas in the sea surrounding Taiwan’s main island. Other areas also targeted Taiwan’s offshore islands, which are close to the Chinese mainland.

China’s defence ministry said the drills on Friday were testing its military’s ability to “seize power” and occupy key areas, in line with Beijing’s ultimate goal of annexing Taiwan. Taiwan’s government and people reject the prospect of Chinese rule, but China’s ruler Xi Jinping has not renounced the use of force to take the island. Western intelligence has claimed Xi has told the People’s Liberation Army to be capable of an invasion by 2027.

On Thursday afternoon the PLA said fighter jets carrying live missiles had successfully carried out “mock strikes” on Taiwanese military targets, but so far the drills are smaller in scale than those held in 2022 and 2023. Beijing did not declare any no-fly zones, and no live fire was used except in practice areas on the Chinese mainland, according to Taiwan’s military.

The ministry said China sent 19 warships around Taiwan’s perimeter, 16 marine police vessels and 49 warplanes, of which 35 crossed the median line, the de facto border between China and Taiwan.

In response, Taiwan scrambled jets, put its forces on alert, and moved anti-ship missile systems to coastal areas.

From a military base in Taoyuan on Thursday, Taiwan’s new president Lai Ching-te said he had confidence in the military to protect Taiwan.

China’s official state news agency Xinhua said on Friday the drills were “legitimate, timely and entirely necessary, as ‘Taiwan independence’ acts in any form cannot be tolerated”.

Lai was inaugurated as Taiwan’s president on Monday, after winning democratic elections in January. Lai and his predecessor, Tsai Ing-wen, are from the pro-sovereignty Democratic Progressive party (DPP), which Beijing considers separatist.

In his inauguration speech Lai affirmed Taiwan’s sovereignty, promised to defend it, and urged China to end hostilities. Any speech by a president belonging to the DPP, short of capitulating to Beijing’s position that Taiwan belongs to China, was likely to provoke an angry response.

A Xinhua editorial said his speech was a “serious provocation” and China’s countermeasures were “inevitable”.

“Lai has deliberately incited hatred toward the mainland and escalated confrontation and hostility across the Strait,” it said.

In an editorial, the official newspaper of China’s ruling Communist party, the People’s Daily, said it was a shared belief among Chinese people that the territory of the nation cannot be divided, the country cannot be thrown into chaos and its people cannot be separated.

A conflict over Taiwan would be catastrophic, and likely involve other countries in the region, and beyond. In response to the drills, representatives from Japan, the US, South Korea, and Australia called for calm. Australia’s foreign minister, Penny Wong, warned that “the risk of an accident, and potential escalation, is growing”.

As China-Australia ties fray, should Canberra keep its friends close, its enemies closer?

https://www.scmp.com/week-asia/opinion/article/3263833/china-australia-ties-fray-should-canberra-keep-its-friends-close-its-enemies-closer?utm_source=rss_feed

Just a few years ago, Australia could not get enough of China.

Today, even Australia’s research efforts with China have plummeted to record lows.

The problem was so chronic that earlier this month, 60 academics penned a letter to Australia’s main funding research agency, the Australian Research Council, saying the production of core China research in Australia is in crisis.

They cite the Australian Academy of Humanities, whose report last year flagged little support for China-related research at scale.

The academy is concerned because having sovereign China knowledge capability is “critical to ensuring that challenges and opportunities are understood with Australia’s distinctive interests in view”.

There is little doubt the drop in Australian funding for research on China and research between Australian and Chinese academics has everything to do with the gnarly “red scare” that lingers in the western end of Asia-Pacific.

Just about everything including business collaboration with China has slowed in Australia for “national security” reasons.

Academics, whose goals are to amass and build valuable knowledge, know that a loss of an understanding of a key trading partner like China and a loss of an exposure to its innovation know-how are detrimental – for Australia.

Beijing’s record in the global academic scene is problematic, and fearmongers are quick to magnify it.

Some years ago, China’s Confucius institutes – although designed to teach Chinese language and culture similar to other promotional institutes like France’s Alliance Française or Germany’s Goethe-Institut – came under scrutiny for allegedly extending Beijing’s influence at overseas academic institutions.

None of these suspicions were proven, but analysts say there is good reason to assume these institutes would not be excluded from achieving Beijing’s goals and objectives.

Equally, media, anti-China proponents and even security establishments have sought to reinforce suspicions of Chinese academics on university campuses or to rubbish the reputations of academics who support collaboration with China.

Last week, Queensland University of Technology PhD student Xiaolong Zhu’s visa to study in Australia was denied on the grounds of being “directly or indirectly associated with the proliferation of weapons of mass destruction”.

I agree with Southern Cross University academic Brendan Walker-Munro who says in an analysis last week that while Zhu has not done anything wrong or been convicted of a crime, it reveals Australia’s rather patchy and blunt approach to “research security”.

But it is effective in carving political legitimations that China is an “enemy” in Australia, evidence or no evidence.

Australian and Chinese academics now tread a landmine-strewn landscape where, as the Australia-China Relations Institute says, any kind of collaboration could be seen as a conduit for espionage, foreign interference, intellectual property theft or supporting ends that are contrary to Australian values.

So, applications drop, grants shrink, research disappears. But who loses? Australia.

Australia loses because paranoia only achieves so much – mostly votes for politicians seeking to capitalise on fear and division.

If China is indeed a power to be worried about, wouldn’t Australia want to know as much about it as possible, perhaps even know what it is up to?

Former Australian diplomat Jocelyn Chey, one of the few Australians to study the Chinese language after the Second World War, says her studies helped her navigate pathways and avoid pitfalls for the benefit of Australia.

Just as the 60 academics wrote their letter, Chey also penned a local op-ed last week expressing concerns about the loss of China studies in Australia.

And it’s not just the Chinese studies that are declining in Australia, so are studies in other Asian languages such as Bahasa Indonesia, all of which are critical to Australia’s national interests.

Understanding others through language and culture shapes a more sophisticated Australia in its dealings with its closest neighbours.

Blocking or reducing interactions with China or other countries only reduces Australia to a petty, hollow state, susceptible to missteps, misperceptions and misunderstandings.

As the 60 academics write, “this trend runs counter to our national sovereign interests at a time when China is becoming increasingly more important to the Australian economy and also to our stability and security in Asia-Pacific”.

If the “enemy” description must stay, then Chinese literature, especially those by Chinese strategist Sun Tzu, is – ironically – pertinent to Australia at this point.

Shouldn’t Australia keep its friends close, but its enemies closer?

---

US, EU and other democracies slam mainland China for military drills around Taiwan, urge ‘restraint’

https://www.scmp.com/news/china/military/article/3263871/us-eu-and-other-democracies-slam-mainland-china-military-drills-around-taiwan-urge-restraint?utm_source=rss_feed

The European Union as well as lawmakers from the US, Britain and other democracies criticised mainland China’s extensive military exercises around Taiwan on Thursday, warning that the drills threatened to destabilise the region and stoke cross-strait tension.

“The EU has a direct interest in the preservation of the status quo in the Taiwan Strait,” the European body said in a statement. “We oppose any unilateral actions that change the status quo by force or coercion.”

“All parties should exercise restraint and avoid any actions that may further escalate cross-strait tensions, which should be resolved through dialogue.”

Beijing on Thursday launched military air-and-sea exercises around the self-governed island following Monday’s presidential inauguration of William Lai Ching-te from the pro-independence Democratic Progressive Party. Lai was elected in January.

Some 33 Chinese military aircraft, 15 naval vessels and 16 coastguard vessels were operating within Taiwan’s air-defence identification zone, the island’s defence ministry said in a statement.

The People’s Liberation Army’s Eastern Theater Command, which directs activity in the vicinity of Taiwan, termed the drills “a powerful punishment for the separatist forces seeking ‘independence’ and a serious warning to external forces for interference and provocation”.

The Inter-Parliamentary Alliance on China, representing 250 lawmakers from 35 lawmaking bodies including the US, Britain, Canada, France and other democracies, condemned “Beijing’s unprovoked and escalatory action towards Taiwan” as an “affront to peace in the region and a direct challenge to the international community.”

The Chinese consulate in New York countered that it was Lai’s inauguration speech that had been provocative.

“Hyping up ‘Taiwan independence’ will not change the fact that the one-China principle cannot be violated, separatist attempts for ‘Taiwan independence’ are doomed to fail and the general trend of China’s reunification is irreversible,” said the consulate’s spokesperson in a statement.

“Lai’s speech stubbornly followed the ‘Taiwan independence’ stance, wantonly advocated separatism, incited cross-strait confrontation and sought independence by relying on foreign support and by force.”

Beijing sees Taiwan as a part of China to be reunited by force if necessary. Most countries, including the US, do not recognise Taiwan as an independent state. But Washington opposes any attempt to take the self-governed island by force.

The US is legally bound to support Taiwan’s military defence capability and has backed the island’s expanded presence in global health, crime prevention and aviation – objectives that Beijing opposes.

The PLA said the drills were designed to focus on naval-and-air combat readiness patrols, seizing battlefield control, precise strikes of crucial targets as well as warship and aircraft patrols near the island.

The aim was to “test the joint combat and real combat capabilities of the theatre forces”, it added.

While the two-day exercise has caught the world’s attention, it is shorter and less forceful than the almost-weeklong exercises, including the firing of missiles near and over Taiwan, that Beijing launched when then-US House Speaker Nancy Pelosi visited Taipei in August 2022.

“While Taiwan is celebrating its democracy, China’s disdain for their values is on full display,” said US senator Roger Wicker of Mississippi, the highest-ranking Republican on the Senate Armed Services committee, on Thursday.

“I will continue to ensure that the US$2 billion in foreign military funds … is correctly spent to help our Taiwanese ally.”

Added the Inter-Parliamentary Alliance: “We call upon our governments, together with all of those committed to regional peace and stability, to loudly condemn these actions without delay, to reaffirm shared commitment to maintaining the status quo and to signal resolute willingness to resist the threat or use of force.”

US should reform existing China tariffs to target technology transfers, congressional panel hears

https://www.scmp.com/news/china/article/3263869/us-should-reform-existing-china-tariffs-target-technology-transfers-congressional-panel-hears?utm_source=rss_feed

Washington should reform existing tariffs to target Chinese technology-related transfers, an American economist told a congressional panel on Thursday.

The US should remove import taxes that offer no strategic value and to ease a burden felt by working Americans, according to Mary Lovely of the Peterson Institute for International Economics in testimony before the US-China Economic and Security Review Commission in Washington.

Asked what types of tariffs should be relied upon in such a reform, Lovely identified “knowledge-intensive sectors” and those “where we think China [and] Chinese companies may have benefited from forced technology transfer,” referring to the technology and pharmaceutical sectors.

“We need to ask: why do we have a tariff on a tablecloth, but you do not have a tariff on a Fitbit or an Apple Watch? Why are we taxing the people who shop at Walmart, but we do not tax the people at the speciality store?” she asked, saying low-income families paid more in import taxes than the wealthy.

Lovely, a former economics professor at Syracuse University, said if the objective of imposing tariffs “is to reduce sales of Chinese firms that have profited from ill-gotten technology, coverage of high-technology imports should be increased”.

Her comments underscored a challenge confronting the administration of US President Joe Biden as it seeks to stake out a tough stance on China with tariffs while tackling high inflation, a major concern as the president seeks re-election in the autumn.

In April, the US consumer price index rose by 0.3 per cent month on month and 3.4 per cent year on year.

On Monday, a top economic planner in Beijing said in a commentary that Washington’s greater use of import tariffs, including those targeting Chinese goods, had led to worse inflation in the US.

The National Development and Reform Commission on its WeChat account described America’s “pursuit of anti-globalisation, decoupling and disconnection” as resulting in a mismatch of global resources as well as of supply and demand that would “inevitably impose further constraints” on reducing US domestic inflation.

Tensions between the world’s two largest economies have again flared after Washington last week announced new tariffs on Chinese-made electric vehicles, advanced batteries, solar cells, steel, aluminium and medical equipment.

Lovely said trade-war tariffs “tax imports that have no obvious relationship to the cause for the original action”, citing previous analysis of the four waves of US tariffs imposed between 2018 and 2019.

“The structure of the trade-war tariffs raises basic questions about their efficacy and the fairness of their design,” she added.

Another economist testifying before the commission on Thursday agreed with Lovely’s recommendation that the list of Section 301 tariffs be reviewed and refined. The tariffs were put in place by the administration of former president Donald Trump.

Davin Chor of the Tuck School of Business at Dartmouth College in New Hampshire believed it was time to reconsider “which products exactly we care the most about because they are precisely the most strategic” as well as technology-intensive and knowledge-intensive.

“This is where we want American workers to be. Those are industries that add a lot of value, where we can be world leaders and pay high wages,” he said, adding that non-sensitive tariffs should be lowered.

Furthermore, Lovely said the US should be clearer in communicating strategic intent in its economic relationship with China to make the policies more effective.

“Trade policies that embody greater clarity in the US position on its relationship with China will reduce the uncertainty that dampens the international flow of capital and diminishes global growth prospects,” she added.

Jamieson Greer of the law firm King & Spalding, also testifying on Thursday, said “there is a growing consensus that China should not benefit from permanent normal trade relations (PNTR)” with the US because of the Asian giant’s unfair trade practices and its development into an adversary rather than a collaborator.

“It seems just completely malpractice from a policy perspective for US policymakers to be giving preferential permanent normal trade access to a competitor,” said Greer, who suggested the US revoke China’s PNTR status in phases.

“Be clear about what we want to do and articulate it and not have it be waving in the wind … have Congress itself, who controls trade regulation, come down and say, ‘Here is what we are going to do,’” he added.

China, South Korea and Japan are talking again – the US should take note

https://www.scmp.com/opinion/asia-opinion/article/3263610/china-south-korea-and-japan-are-talking-again-us-should-take-note?utm_source=rss_feed

On May 26, the leaders of China, Japan and South Korea will gather in Seoul for a trilateral summit, the first since 2019. Chinese Premier Li Qiang, Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk-yeol will come to the long-delayed meeting with differing agendas but a common desire to stabilise relations in the face of a turbulent security landscape.

First held in 2008, the meeting was originally intended to be an annual affair with a heavy economic focus. The format is inherently asymmetrical: China sends its number two official – not its president – while South Korea and Japan dispatch their top political leaders. After the 2019 meeting in Chengdu, the Covid-19 pandemic scuttled subsequent meetings and Beijing resisted resumption, perhaps due to suspicion of the pro-US Yoon administration and friction within Japan.

But facing a lagging economy, the formation of several US-led security arrangements in its orbit and a range of trade restrictions, Beijing has shifted its stance. China is keen to reinforce its neighbours’ investments in its economy, arrest US success in formalising partnerships that Beijing sees as containment and stabilise its geopolitical position.

China is eager to provide a geopolitical counterweight to the rejuvenated US embrace of allies in the region. Japan and South Korea have both drawn closer to the United States by deepening their alliances and adopting a trilateral relationship with regular military exercises and exchanges. Under Yoon and Kishida, and with US urging, Tokyo and Seoul have sidelined historical issues that have dogged relations in past years.

The rapprochement formalised at Camp David in 2023 appeared to alarm China, prompting it to signal an openness to resuming the trilateral dialogue, in the hopes of possibly eroding the emerging strategic convergence. Although it seems unlikely Japan or South Korea will backtrack on their commitments to the US, China may advocate that both countries seek a degree of strategic autonomy rather than hew closely to US security priorities.

While South Korea and Japan have aligned more closely with the US and even expanded their support for US positions globally, they both inhabit a duality in their foreign policy approaches to China.

Although wary of Beijing’s growing economic and military power, Tokyo and Seoul need to maintain strong trade relations with China as the economic behemoth in the region. China is both Japan and South Korea’s largest trading partner. Many Korean and Japanese companies still see China as a critical market opportunity.

Although both governments have taken measures to de-risk their investments in China, Japan more so than South Korea, the importance of economic ties places limits on these efforts. At the summit, Li is likely to seek to remind his counterparts that their country’s economic fates are closely linked to China.

At the last trilateral summit, trade was prominent on the agenda. The three leaders agreed to cooperate through the Regional Comprehensive Economic Partnership and advance negotiations on a trilateral free trade agreement. Now, the prospect for such an agreement appears remote. In the intervening years, attention to vulnerable supply chains – particularly those in sensitive technology sectors – has grown, complicating trade talks.

The trade war between the US and China has imposed another degree of complexity to Japan’s and South Korea’s straddling of their close US ties and dependence on China, even in strategic sectors such as semiconductors.

While Japan adopted some export controls on semiconductor material to China, it has resisted imposing curbs on all financial flows that feed into China’s advanced technology sectors. China is an important source of industrial materials for South Korea, which relies on China for critical minerals used in hi-tech industries like electric vehicle batteries.

China is also a major market for South Korean chips, a source of tension in the US-South Korea relationship. This high-stakes web of threat and dependence is unlikely to be resolved during the two-day summit in Seoul.

Generating cooperation on the geopolitical conflicts of the day may also prove elusive. All three countries share concern about North Korea’s advancements in its nuclear and missile programmes, but priorities vary widely.

Japan wants resolution of its abductee issue, South Korea seeks Chinese pressure in shaping Pyongyang’s behaviour and China has to balance its concerns about North Korea with the reintroduction of Russian influence in Pyongyang.

In another area of sharp divergence, Japan and South Korea are strong supporters of Ukraine in the war with Russia while China has remained steadfast in its partnership with Moscow throughout the conflict.

It seems unlikely that any emerging joint statement will make headway in driving new cooperation among the three parties, save for a modest set of talking points on sustainable development, international exchange and the shared problem of dealing with ageing societies.

What, then, is the significance of holding this trilateral summit if the parties will continue to be divided on the most urgent security issues in the world? The biggest deliverable is the event itself, and that the three countries found it enough to their advantage to meet and talk.

US policymakers should take note of the fact that even Washington’s closest allies seek a reasonably secure relationship with China: Northeast Asia is interconnected, despite the range of security concerns.

All three countries are eyeing the coming US presidential election with trepidation and feel an imperative to stabilise their immediate neighbourhood’s geopolitical situation. The possibility of an unpredictable and chaotic foreign policy from Washington may be one of the key drivers for reconvening a trilateral summit that otherwise promises few concrete outcomes.

China’s exporters, eager for Russia foothold, tread lightly to avoid financial bear trap

https://www.scmp.com/economy/china-economy/article/3263824/chinas-exporters-eager-russia-foothold-tread-lightly-avoid-financial-bear-trap?utm_source=rss_feed

In recent weeks, the 25th floor of the Shanghai Tower has been swarmed with Chinese exporters. Legions of businesspeople have flocked from all over the country to open a new account at VTB Bank – the only Russian bank currently in operation within China’s borders.

Among the crowd on Tuesday was Yeno Yan, an agricultural machinery manufacturer who had flown in from the eastern province of Shandong. Eager to clear up headaches caused by trying to collect payments from Russian clients – a common problem for Chinese traders in the years since hefty sanctions were imposed on Moscow over its February 2022 invasion of Ukraine – Yan instead found more frustration.

“We could only make arrangements for a rain check,” Yan said. “All of us hit a wall, unable to see anyone.”

Yan had hoped that his company could open an account at Chinese banks near the country’s northeast border with Russia. Those smaller banks, unlike the state-owned behemoths, seemed more willing to take the risk.

“It’s too far away, and we’ve heard that they have also recently suspended forex services,” he lamented.

Chinese firms are doing their utmost to facilitate trade with Russian partners, which hit a record high of US$240 billion last year on strong domestic demand for Russian energy products and Russian purchases of Chinese cars, consumer goods and other products.

Many have had trouble with payment delays. Some smaller players are so cash-strapped and desperate they are beginning to ponder pulling out of the Russian market entirely.

Exports from China to its northern neighbour fell 15.7 per cent year on year in March, and a year-on-year drop of 13.6 per cent was recorded last month by China’s General Administration of Customs. For the period from January to April, the administration recorded a decline of 1.9 per cent year on year.

After their meeting last week in Beijing, President Xi Jinping and Russian President Vladimir Putin spoke about promoting the use of local currency in cross-border settlements, as well as payment tools and platforms for trade and business among the Brics bloc – the coalition of emerging economies which includes Brazil, Russia, India, China and South Africa as members.

No details on short-term solutions to payment issues were mentioned, however.

On the Russian end, buyers are also concerned. Although both countries have their own equivalents to the Society for Worldwide Interbank Financial Telecommunication system – the pre-eminent platform for international payment clearings – and a majority of bilateral trade is now settled in the yuan or rouble rather than the US dollar or euro, there are still some sticking points that limit bilateral trade.

“A majority of Russian companies are forced to use services of middlemen with an extra cost of 3 to 6 per cent of invoice price,” said Maxim Kuznetsov, chairman of the Russian-Asian Business Council.

“The key Chinese banks are afraid to cooperate with Russia due to risk of secondary US sanctions … At this moment only VTB has a Chinese branch and can maintain settlements as usual.”

VTB, Russia’s second-largest bank, has already been added to the US sanctions list, along with its CEO Andrey Kostin.

In an earlier interview with the Post in October, Kostin said that the bank’s Shanghai branch, which opened in 2008, employed 40 people and can play an important role in broader China-Russia cooperation.

In the same interview, he also expressed interest in joining China’s yuan-centred payment network, the Cross-Border Interbank Payment System. “We should have more direct corresponding bank accounts to deal in roubles and yuan, and we should create a new international depository settlement hub.”

Many Chinese exporters are anxiously waiting for new developments, as Russia is a promising market immune to Western barriers on products made in China.

Rick Wang, sales manager for a down jacket manufacturer in Zhejiang province, said even when trade is settled in yuan it has become more difficult. An even greater burden of proof has been required since March, such as certificates of non-military use for Russian clients, legal shareholder certificates and bills of lading.

The Russian market now accounts for about 20 per cent of overseas orders for Wang’s company. The payment cycle has consequently increased, from less than three months to more than five.

“Now, Russian buyers want Chinese exporters to open accounts at Russian banks so that payment can be made,” Wang said. “But we’re worried about potential risks, like fund security and [the possibility] opening an account with a Russian bank will put a firm on the sanctions list.”

This has had a detrimental effect on his firm’s planning, he said. “In the short term, our cash flow can still cope, but in the long run, it will definitely affect our expansion into the Russian market.”

For Tom Du, a machinery manufacturer from Jiangsu province, Russia is a safe haven for many Chinese exporters as their business goes through a rocky period.

“The entire foreign trade industry is particularly short of orders, with fierce competition and overcapacity,” he said – but he added that they are still delivering to long-time Russian clients on deadline.

“Our customers are also depositing payments to their bank accounts in China on time. It’s just a matter of when we can withdraw the funds,” Du said.

“Especially after Putin’s visit to China, I believe the payment issue will be addressed.”

Yan, Wang and Du all stated that they would not give up on expanding into the Russian market, and would continue to produce and ship even if they needed to advance capital to do so.

Jerry Ni, a trader of consumer goods also based in Zhejiang, expressed disappointment at the delays. Banks’ rigorous scrutiny of payments is now stretching the interval before deposit to three weeks.

“I can feel banks are overstretched, as they have to manually verify every deal and ask clients to file documents to prove the deal is legit,” Ni said.

Although Russian clients are testing alternative ways to wire money by using different local banks and intermediaries, Ni said he could be forced to give up on the market if Chinese banks are forced to step up their auditing to keep pace with Western sanctions.

He said he would not turn to underground banks or other grey-area alternatives that are fraught with risk.

“Russia’s demand is strong, as it does not have a complete manufacturing sector for consumer goods. It would be a pity to pull out from this big market.”