Daily Briefs


Photo : Bloomberg

22 February 2024, Thursday | Vol.1 No. 17

China buys the bulk of Russian crude oil as Indian imports dwindle

| European Union blacklists three Chinese firms | | China set to miss climate targets with increased CO2 emissions |

 

CHINA READER DAILY WIRE
INTERNAL
A cargo ship rams a bridge in Guangzhou’s Nansha district

On 22 January, a cargo ship rammed into a bridge over the Pearl River in Guangzhou, southern China. The incident led to the death of two people with three missing. According to local sources, the authorities have arrested the cargo ship's captain. The bridge connects Guangzhou to other Greater Bay Area (GBA) cities along the Pearl River, like Zhongshan and Shenzhen. The bridge is also critical for the island’s water supply as it is the only link between Sanmin Island to the southwest of Nansha and the rest of the Guangzhou district. According to the reports from Hongxing News, the supplies will be resumed to the island after four days. The Nansha district in the Guangdong province is seen as the zone for technological development in the GBA and a larger part of the government’s efforts to integrate 11 southern Chinese cities into an economic powerhouse. (Hayley Wong, “2 dead, 3 missing in Guangzhou after cargo ship rams bridge over Pearl River,” South China Morning Post, 22 February 2024)

ENVIRONMENT
China set to miss climate targets with increased CO2 emissions, says The Guardian
On 22 February, according to an editorial in The Guardian titled “Growth in CO2 emissions leaves China likely to miss climate targets,” by Amy Hawkins, China is about to miss its 2025 climate targets as the country grapples with an economic slowdown and increased investment on construction and manufacturing sector, along with that they approved additional coal power manufacturing. According to the study by the Carbon Brief, conducted by Lauri Myllyvirta, China’s energy consumption increased by 5.7 per cent in 2023, the CO2 emissions grew at an average of 3.8 per cent between 2022 and 2023, which is a 0.9 per cent increase to the average between 2016 and 2020. The study found that increased carbon intensity is swaying China away from its climate targets. Hawkins also stated that the government has prioritized its stimulus support greatly towards the construction and manufacturing sector, which is carbon intensive. According to the National Energy Administration, China’s installed renewable energy capacity exceeded 1.45bn kilowatts in 2023. Despite Xi Jinping’s pledge to strictly control new coal power in 2021, the approval for new coal has increased drastically. (Amy Hawkins, “Growth in CO2 emissions leaves China likely to miss climate targets,” The Guardian, 22 February 2024)

CHINA & TAIWAN
US Congress delegation visits Taiwan
On 22 February, the chairman of the US House of Representatives committee on China, Mike Gallagher, met Taiwan’s top leadership, including President Tsai Ing-wen and Vice President Lai Ching-te, after securing the victory in the presidential elections in January. Gallagher said, “Time and again, Taiwan has shown the world how to stand up to the CCP’s bullying and not only survive but thrive.” President Tsai welcomed the US delegation, and their visit showed “staunch US support for Taiwan’s democracy through concrete action,” and would hope to see more exchanges in 2024. US representatives Raja Krishnamoorthi, a Democrat from Illinois, John Moolenaar, a Republican from Michigan, Dusty Johnson, a Republican from South Dakota, and Seth Moulton, a Democrat from Massachusetts, accompanied Gallagher to Taiwan. The delegation’s visit focuses on US-Taiwan relations, regional security, trade, and other issues. While the US does not officially recognize Taiwan, it is Taiwan's key ally and defense partner. (“US lawmaker accuses China of ‘bullying’ in Taiwan visit,” The Straits Times, 22 February 2024

CHINA & SOUTH ASIA
India and China hold border talks along the LAC
On 21 February, India and China announced the completion of the 21st round of corps commander-level border talks held on 18 February. The meeting was held at the Chusual-Moldo point on the Line of Actual Control (LAC). According to India’s Ministry of External Affairs, the recent negotiations focused on “complete disengagement” along the line of Eastern Ladakh. China said the talks were “positive, in-depth and constructive,” and India said that the talks were “held in a friendly and cordial atmosphere.” Chinese Ministry of National Defense said the commanders agreed to find a mutually acceptable solution at the earliest. The current border talks began in May 2020 and focused on disputes along the western line between Chinese-controlled Aksai Chin and Indian-controlled Eastern Ladakh. (Liu Zhen, “China and India hold further round of border talks along disputed frontier,” South China Morning Post, 21 February 2024)

Chinese survey ship’s visit to Maldives
On 22 February, global ship tracking data by MarineTraffic showed that the Chinese research ship Xiang Yang Hong 03 was to arrive in Male, Maldives. The US-based think tank CSIS mentioned that China will attempt to leverage such research missions to deploy its naval forces. China’s Ministry of Foreign Affairs stated the ships’ visit was exclusively for peaceful purposes for better scientific understanding. In the past, India has highlighted its concerns about the presence of Chinese research vessels in the Indian Ocean, and they have been suspected of dual-use meant for both civilian and military purposes. The arrival of Xian Yang Hong 03 follows the visit of Maldivian President Mohammed Muizzu in January to upgrade bilateral relations, and China, in return, offered 920 million yuan (USD128 million) in free aid. The Maldives authorities said that the vessel will not undertake any research and will stop for crew rotation and supplies. (Ryan Woo, “Maldives visit of Chinese survey ship could trigger Indian Ocean security concerns,” Reuters, 22 February 2024)

CHINA & EUROPE
“Climate change, AI, aerospace, direct flights, and people-to-people connectivity, ”Wang Yi meets Macron
On 20 February, Chinese Foreign Minister Wang Yi met French President Emmanuel Macron and co-chaired new rounds of strategic dialogue between China and France. The high-profile visit signifies the growing bilateral ties between China and France. Wang Yi also attended the 60th Munich Security Conference. Macron said France adheres to the 'One China policy' and is ready to implement the consensus between the two sides. He further recalled his visit to Beijing in 2023 to improve bilateral ties. On the sidelines of the 60th anniversary of diplomatic relations between China and France in January 2024, President Xi Jinping hailed the two countries as being at the forefront of China’s relations with Western countries. During the 25th China-France Strategic Dialogue in Paris, both sides agreed to strengthen their cooperation in the areas of climate change, AI, aerospace, direct flights, and people-to-people connectivity. According to Gao Jian, Europe has taken a de-risking strategy instead of de-coupling to minimize the excessive risk to its economic stability. (Chen Qingqing, “Chinese FM meets with Macron in Paris, concludes Europe trip,” Global Times, 21 February 2024)

”Interdependence based on mutual trust,” Wang Yi on China-EU cooperation
On 22 February, The Straits Times reported on Wang Yi’s interview on the Sino-EU relationship. He said that Europe increasingly views China with a “rational perception” and that it should not be afraid of it. The statements were made after Wang Yi visited a host of European countries, where he iterated that in looking to de-risk and cut dependence it should not eliminate cooperation or ruin mutual trust. Wang said: “Interdependence based on mutual trust is conducive to the complementary advantages of all parties and is conducive to accelerating common development.” After his visits he believes that the European side is also eager to build their cooperation and is “very enthusiastic” and that “China will continue to make efforts in relaxing market access, benchmarking international trade rules, and clearing up barriers for foreigners to come to China.” (“China sees Europe as increasingly ‘rational’ about its development, says foreign minister,” The Straits Times, 22 February 2024)

China buys the bulk of Russian crude oil as Indian imports dwindle
On 21 February, an article in Bloomberg reported on China buying the major Russian Sokol Crude oil as India refused to buy them in fear of Western sanctions and miscommunication. The Chinese refineries have been taking the bulk of the Russian crude oil, within February the private processor took 168,000 barrels of the Sokol crude oil, says Kpler (Intelligence firm). India imported 119,000 barrels of oil after a halt in January, a decrease from 140,000 barrels last year. Due to the sanctions imposed on Russia, many Western buyers turned away, this is where Chinese and Indian importers came in, recently India has also been turning away as they encountered difficulties in payments and disagreements over discounts. Currently, 15 million barrels for India are sitting idly on the Malaysian and South Korean coasts. (“China Snaps Up Russia’s Sokol Crude as Indian Buyers Turn Away,” Bloomberg, 21 February 2024)

Volkswagen criticized for using Uyghur’s forced labour
On 22 February, Nikkie Asia reported on Volkswagen’s group using Uyghur labourers in China. An ethical investment group called the Sustainable Development Funds to sell out Volkswagen investments. The German company have been accused of using discriminated forced Uyghur labourers as part of their joint venture with the Chinese Stated Owned Enterprises SAIC Motors. Handelsblatt a German-based daily reported that the company used Uyghur Muslims to aid in the building of test tracks in Xinjian City. The Association of Ethical Shareholders said: “We have long been calling on Volkswagen to turn its Chinese supply chain upside down in search for parts and materials produced in Xinjiang to rule out the use of inputs produced with forced labour.” The Volkswagen spokesperson said that the accusations and the various scenarios need to be investigated. (“Volkswagen slammed by investors group over forced Uyghur labor,” Nikkie Asia, 22 February 2024)

European Union blacklists three Chinese firms
On 21 February, the ambassadors from the European Union agreed to the 13th package of sanctions, since the onset of the Russia-Ukraine war. The EU greenlit the sanctions, blacklisting Chinese companies that are accused of aiding the Russian military. These Chinese entities are barred from conducting business with European companies as they stand to become an access for Russian buyers through China. Hungary considered to be a close ally of China did not veto the sanction over delayed passage. The EU delegates stated that they received clear go head signs from Hungary and that they would not oppose the sanctions. The companies sanctioned are as follows: Guangzhou Ausay Technology Co Limited, Shenzhen Biguang Trading Co, Yilufa Electronics and the Hong Kong company RG Solutions. These three are part of the other 193 companies sanctioned from Turkey, North Korea, Kazakhstan and India, bringing the total sanctioned entities to 2,000. (“EU agrees to blacklist Chinese firms for first time in latest Russian sanctions package,” South China Morning Post, 21 February 2024)
 

 

 

EAST ASIA & THE PACIFIC READER
EAST ASIA
H3 launch breathes new life to Japan’s space ambition, Analysis
On 22 February, an analysis in The Straits Times, titled “As rivals surge ahead, Japan’s successful H3 launch breathes new life into battered space industry,” by Walter Sim outlined the growing space ambitions of Japan. Recently, Japan launched its next-generation H3 rocket, this is their first flagship rocket in 23 years and has brought a new life to the space agency. The H3 launch vehicle was developed by the Japan Aerospace Exploration Agency (JAXA) and the Mitsubishi Heavy Industries (MHI). The launch aims to carry out orbital commercial research, weather monitoring and military reconnaissance activities. The H3 launch is set to replace the H2A rocket that has spy equipment to monitor North Korean activities. The launch is said to a significant according to Walter as this shows Japanese intent to get into the commercial space industry. The H3 is also a key launch as part of the Space Security Initiative document which outlined that space is a: “major arena for geopolitical competition”, Japan urgently needs to strengthen its national power in space strategy in such areas as diplomacy, defence, economy, technology and intelligence capabilities.” (Walter Sim, “As rivals surge ahead, Japan’s successful H3 launch breathes new life into battered space industry,” The Straits Times, 22 February 2024)

The US State Department approves of military equipment’s sale to Taiwan, Pentagon
On 21 February, the US State Department approved the possible sale of defence equipment to Taiwan. The sale is estimated to be USD 75 million which would include a tactical data link system. The sale is said to be in light of the heightened tensions in the Taiwan Straits between China and Taiwan. The recent death of two Chinese fishermen after being chased by Taiwanese coast guards has led to China increasing its presence in the region. The new package is said to include Cross Domain Solutions, Global Positioning System receivers, High Assurance devices, some communication equipment and other program-related support equipment. The Pentagon Defence Security Cooperation Agency informed the Congress of the sale and that the contractor for the sale would be based on a competitive process. (“US State Dept OKs potential sale of military gear to Taiwan, Pentagon says,” Reuters, 22 February 2024)

US Representative Mike Gallagher affirms support for Taiwan
On 22 February, US Representative Mike Gallagher reaffirmed the US support for Taiwan regardless of who becomes the next President. Gallagher came to Taiwan with four other lawmakers, he has been a strong critic of China and a staunch supporter of Taiwan. He assured the people of Taiwan that America stood with them and plans to in the future. He also met the outgoing Taiwanese President Tsai-Ing-Wen and said: “Today, freedom is under attack from authoritarian aggression and we need to be more vigilant than ever if we want to pass on this gift of freedom we have been given to the next generation,” and called the Tsai the “leader within the free world.” In December 2023, Gallagher came out with a list of bipartisan recommendations aiming to reset US-China ties. (“US lawmaker in Taiwan visit reassures support regardless of U.S. election outcome,” Reuters, 22 February 2024)  

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