HIGHLIGHTS
EXTERNAL
AUKUS countries to discuss the expansion to deter China by including Japan
On 07 April, the Financial Times reported about a discussion to expand the AUKUS by the member countries - the US, UK, and Australia. According to the report, the US aims to push for Japan in the pact to deter China. The defence ministers of Aukus are set to discuss the “Pillar II” of the pact, which would involve collaborating on technologies and sharing hypersonic weapons and undersea capabilities. They do not plan to expand the “Pillar I” that suggests allowing Australia to get nuclear procurement submarines. The discussion comes right before the Biden cabinet is set to host Japanese Prime Minister Fumio Kishida, and parallelly, a trilateral meeting will be held on 11 April between Japan-US-Philippines. The ministry announced that they would begin their consultations to discuss the formal inclusion of Japan and the US pushes for it. Japan has recently announced its expansion in the defence budget and there are speculations that Japan would be party to possible “Pillar II” plans. The UK and Australia have pushed against the Japanese inclusion in the pact stating that it lacks security capabilities to protect highly sensitive information. Australia stresses that they need to approve and expand the submarine program before they expand the pact. Kishida when asked on the same said: “To achieve a free and open Indo-Pacific, we would like to continue various efforts to strengthen our cooperation with the US, Australia, and the UK, who are important partners in security and defence.” (Demetri Sevastopulo and Kana Inagaki “Aukus weighs expanding security pact to deter China in Indo-Pacific,” Financial Times, 07 April 024)

CHINA & THE AMERICAS
US-China have a “duty” to address their complex relationship, says US Treasury Secretary
On 07 April, US Treasury Secretary Jante Yellen while visiting China raised several concerns regarding the Chinese production overcapacity and told the Chinese Premier Li Qiang that they could stabilize their relationship as they have “tough” discussions. Qiang said that both countries would respect each other and that they should be partners and not adversaries. Yellen asserted that they must manage their complex relationship and that: “This has not meant ignoring our differences or avoiding tough conversations. It has meant understanding that we can only make progress if we directly and openly communicate with one another.” Qiang also said that the US should not turn the issue of economy and trade into a political and security issue and view the problem of overcapacity from the lens of market and global perspective, quoting Xinhua. Yellen and her Chinese counterpart Vice Premier He Lifeng agreed to launch a dialogue on “balanced growth” and Yellen stated that she intends to use that platform to push for a level playing field with China. (David Lawder, “US, China need 'tough' conversations, Yellen tells Chinese premier,” Reuters, 07 April 2024)

CHINA & THE AMERICAS
Mexico is the new hot destination for Chinese entrepreneurs, says an opinion in SCMP
On 06 April, an opinion in the South China Morning Post looked into the Chinese rush into Mexico as their new hot destination for small merchants. The op-ed stated that there has been a shift in perception of the Mexico. Chinese, viewed it as an unruly state with several gang wars. Within the last four-year Fujianese businessmen have built a “Chinatown” in Mexico. The op-ed then looks into the owner of four wholesale markets and the designer of the idea Lin Yun who said that the neighbourhood had no trace of Chinese people but now it is littered with them. For many Chinese merchants, Mexico has become the new hot destination and this has led to an influx of Chinese expatriates. This influx has also sparked protests by the Mexican communities with signs saying “Go Back Chinese” and that this is unfair competition. According to Mexico’s Secretariat of Tourism, the government has granted over 5,018 visas to Chinese immigrants in 2023. There has also been an increased exposure to Chinese brands where in 2023, Mexico became China’s second largest car importer and major Chinese companies like Oppo, Honor and BYD have found their place in the Mexican market. (Ji Siqi and Igor Patrick, “Chinese expatriate entrepreneurs find a new gold rush destination in Mexico,” South China Morning Post, 06 April 2024)

CHINA READER DAILY WIRE 
ENERGY & ENVIRONMENT
Australian mineral industrialist asks China to increase green standards for its Nickel production in Indonesia
On 08 April, the Australian mining industrialist Andrew Forrest called out China to increase their environmental standards for its global supply of nickel. He highlighted the companies exporting nickel processed from Indonesia, should know that the Chinese activity in Indonesia is a “complete environmental irresponsibility.” In an interview with the Financial Times, he said that Electric Vehicle manufacturers should be cautious of Nickel produced in Indonesia, highlighting that they are procured at a high cost to the environment. His statements come as the prices of nickel fell which was partly due to Indonesian supply. Indonesia is slowly becoming a vital player in the supply of nickel as the Chinese investment aid is tapping into the vast nickel source. While China has domestically improved environmental policies, in Indonesia the industries are infamous for waste pollution, high carbon emissions and heavy reliance on coal. The abuse by Indonesian supply has led to the imposition of the London Metal Exchange, where nickel contracts need to provide a green premium for sustainable production. Under the LME it will support the trade of low-carbon Nickel and it will ask the countries and companies to report monthly Nickel trade volumes and keep a threshold. The Australian Nickel industries were particularly hit by the Indonesian supply where many firms pulled back their investments or halted their operations, this included Forrest’s firm as well. (Joe Leahy, Nic Fildes and A. Anantha Lakshmi, “Mining billionaire Forrest urges China to demand greener nickel,” Financial Times, 08 April 024)

CHINA & TAIWAN
KMT leader and former Taiwanese President disqualifies Japan's claims to Senkaku Island citing Chinese imperial records
On 07 April, former Taiwanese President and a party member of Kuomintang (KMT) Ma Ying-jeou visited Beijing with a youth delegation on an 11-day trio of “journey of peace.” While visiting a museum he weighed in that the debate over the Senkaku Island/ Diaoyu Island claimed by the Japanese are at odds with the historical records. In the museum, he was shown the “historical” proof showing that the Island did not belong to Ryukyu and that the Island was part of Chinese territory for 500 years until it was annexed by Japan in 1879. The Island has contested claims by both China and Japan. Japan believes the Island belongs to its Okinawa prefecture which includes the area known as Ryukyu. This claim has been disputed by China. Ma said the records on the same should be publicised. Currently, the Island is under Japanese control but China has increased its patrols in the nearby waters. (Sylvie Zhuang, “Taiwan’s former leader Ma Ying-jeou rejects Japan’s claims to Diaoyu Islands during mainland China trip,” South China Morning Post, 07 April 2024)

CHINA & EAST ASIA
China is not a beneficiary but a source of economic revival for South Korea, says South Korean Finance Minister
On 08 April, South Korean Finance Minister Choi Sang-mok stressed the need for South Korea to adapt in competing with China. He warned of the export battles for market share awaiting them in sectors of chips, shipbuilding, and display panels. Choi said that China has gone from beneficiary to South Korea to an economic rival, due to which the country needs to expand its export economy.  Choi said: “Our economic relationship with China has changed — rather than being a beneficiary of China’s export boom, a rivalry has emerged over the past 10 years.” He believes that South Korea will face challenges if it sticks with the old growth model. The South Koreans worry that they will lose their technological edge over the coming decades as China is gaining momentum. (Christian Davies and Song Jung-a, “China now a rival rather than a boon for South Korean exporters, warns minister,” Financial Times, 08 April 2024)

CHINA & AFRICA
Algerian railway network to provide China with alternative Iron Ore supply, says an analysis in SCMP
On 08 April, an analysis in the South China Morning Post looked into the Chinese investment in the Algerian national railway network. The China Railway Construction Corporation (CRCC) has been building a rail line of 575km connecting the Algerian iron ore mines to the national rail network. Algerian Iron ore is one of the biggest reserves in the world. China is currently dependent on Australia and Brazil for their primary supply and China hopes by building the railway network they can get supply from the Gara Djebilet mine. This would help China to diversify its source and for Algeria, it would help them reduce dependency on the oil and gas industry while also boosting the economy. Algerian SOE Cosider Travaux Publics will work with CRCC to develop the railway network. This project is part of China’s “railway diplomacy” and it is also part of one of the deals signed between Algerian President Abdelmadjid Tebboune and Chinese President Xi Jinping in 2023. Algerian MP Mohamed Machkak said: “It will raise standards of living and create economic opportunities for individuals and communities.” The project can produce 2-3 million tonnes annually from the initial production said Lina Benabdallah an associate professor at Wake Forest University. (Jevans Nyabiage, “How North African railway is on track to helping China de-risk its iron ore supply,” South China Morning Post, 08 April 2024)

CHINA & THE AMERICAS
US warns against increased China’s support for Russia
On 06 April, Bloomberg reported on the increased Chinese support to Russia. The US has been warning its allies of the same and China provided geospatial intelligence to aid Russia in its war against Ukraine. The countries are participating in military integration and China has provided Russia with satellite imagery for military use, it also gave them microelectronics, machine tools and tanks. The support by China also includes optics and propellants that are used in missiles while increasing outer space cooperation. While China placed itself at a neutral stance on the war, it also signed a “no limits partnership” and its trade reached USD 240 billion in 2023. For Russia, China and Hong Kong are key gateways for access to technologies that are restricted. US Secretary of State Antony Blinken informed the European allies about the scope of Chinese support and that they need to do more to curtail it. (Alberto Nardelli and Jennifer Jacobs, “China Providing Geospatial Intelligence to Russia, US Warns,” Bloomberg, 06 April 2024)

CHINA & EUROPE
“Asian ‘pivot’ was flawed from the beginning,” on Britain ditching EU, says an Opinion in The Guardian
On 07 April, The Guardian published an Opinion on Britain switching trade from Europe towards China and India as a “poor bet.” The author Will Hutton started with Brexit and how Britain pivoted itself from Europe and made its way to booming Asia. Will called the Asian pivot fanciful for neither is easy picking for Britain nor something that they could use for their economic progression. The op-ed stated that Brexit’s ambitions have turned to ashes. He then outlines the fallacies in both economies, in China, it is an openly run authoritarian government whose economy and demography are both plagued. For India, while it is growing a little faster, its economy is also plagued by the structural problems facing foreign investors. The supporters of China, the Eurosceptics have turned the tables and are now the strongest critics of the Chinese intentions and its espionage activities. To this Will suggests that they need to trade with their eyes open and only when it is mutually beneficial. They should avoid being dependent on either economy and further their security capabilities in their backyards that is the Britain and European Union, because that is where Will believes their interests and values strongly align. (Will Hutton, “Ditching European trade for China and India was ever a poor bet. Now it’s a farce,” The Guardian, 07 April 2024)

Russian Foreign Minister Sergei Lavrov to visit China
On 07 April, Reuters reported that Russian Foreign Minister Sergei Lavrov is set to visit China to discuss the Russia-Ukraine war and to further deepen their partnership. Lavrov is set to meet his Chinese counterpart Wang Yi who initially extended the invitation, the discussion is assumed to include topics like the crisis in the Russia-Ukraine war and the issues in the Asia-Pacific. It is also reported that Russian President Vladimir Putin will travel to China in May to meet Chinese President Xi Jinping. This would be his first foreign trip since his re-election as the President. (“Russia's Lavrov to visit China to discuss Ukraine war,” Reuters, 07 April 2024)