28 September 2021, Tuesday
In Focus
By Juan Mary Joseph
On 25 September, a report by the Washington Post termed the release of two Canadians, detained in China for close to three years as a “brazen act of hostage diplomacy.” Michael Kovrig and Michael Spavor were released and sent back to Canada hours after Meng Wanzhou, the chief financial officer of Huawei Technologies, was allowed to travel back to China after being detained in Canada at the request of the US that her extradition for bank fraud charges since December 2018. Kovrig, a former diplomat, and Spavor, a business executive were both detained in China by authorities on espionage charges, was immediately after the arrest of Meng. After a legal and diplomatic hustle, Meng was allowed to travel back to China after she reached a deferred prosecution agreement with the US Justice Department which involved an acceptance of her role in Huawei’s dealings with Skycom Tech.

The US, China & Canada diplomatic reset
Meng’s arrival in China was accompanied by much fanfare with the Global Times reporting on 28 September that China's Ministry of Foreign Affairs was engulfed with flowers and "thank you" cards sent by people to appreciate for the release and safe return of Huawei's CFO Meng Wanzhou to China. The state backed tabloid also reported that US move to dismiss Meng’s extradition was an opportunity for both countries to reset their sour bilateral relations. However, the White House has denied that the near-simultaneous release of the Huawei executive, the two Canadians and two American siblings, prevented from leaving China since 2018, was not a prisoner swap as assumed. The White House stated that the issue had just been a topic of conversation in a call between the Chinese and American presidents weeks ago. Meng’s release has opened a string of criticisms against the Biden administration. Republican senators in the US have been quick to condemn the release and have urged the White House to address the US Congress on the issue of not confronting the dual threat posed by Huawei and the Chinese Communist Party.

About Canada, the Global Times said that China’s release of the Canadians “unlocks the bottleneck in China-Canada ties.” Canada’s Foreign Minister Marc Garneau has however stated that its "eyes are wide open" when it comes to normalizing relations with China and in the process follow a fourfold approach - "coexist," "compete," "cooperate" and "challenge" to China. 

In retrospect, it is clear that the real victory belongs to the Chinese and gives them a reassurance that their stint of “hostage diplomacy” has been successful against two very powerful opponents. The latter have now been reduced to “weak and naïve” with a Chinese reassurance that foreign citizens can now be used as bargaining chips to get what they want.

References
“Chinese FM's office engulfed with flowers and 'thank you' cards for Meng Wenzhou’s return in a victory for China's diplomacy, Global Times, 28 September 2021”
https://www.globaltimes.cn/page/202109/1235284.shtml 

“Canada foreign minister says eyes wide open when it comes to normalizing China ties, Reuters, 27 September 2021”
https://www.reuters.com/world/china/canada-foreign-minister-says-eyes-wide-open-when-it-comes-normalizing-china-ties-2021-09-26/ 

“China’s ‘hostage diplomacy’ standoff with Canada is over. But how much damage was done?, Reuters, 25 September 2021”
https://www.washingtonpost.com/world/2021/09/25/canada-china-meng-michaels/ 

“China welcomes Huawei executive home, Trudeau hugs Canadians freed by Beijing, Reuters, 26 September 2021”
https://www.reuters.com/world/china/china-welcomes-huawei-executive-home-silent-freed-canadians-2021-09-25/ 

“Chinese FM's office engulfed with flowers and 'thank you' cards for Meng Wenzhou’s return in a victory for China's diplomacy, Reuters, 28 September 2021”
https://www.globaltimes.cn/page/202109/1235284.shtml

“Meng's return ignites national pride amid US hegemony, Reuters, 27 September 2021”
https://www.globaltimes.cn/page/202109/1235254.shtml 

 
IN BRIEF
By Avishka Ashok and Keerthana Nambiar

INTERNAL
People’s Bank of China injects 100 billion yuan liquidity in the market
On 28 September, the Central Bank of China injected 100 billion yuan or USD 15.48 billion into the market to maintain liquidity in the banking system. The People’s Bank of China announced that a 14-day reverse repo was set and the interest rate was fixed at 2.35 percent. Through the reverse repo process the Central Bank of China will purchase security from the commercial banks through bidding and will sell them again in the future. (China's central bank injects liquidity into market, Xinhua Net, 28 September 2021)
http://www.news.cn/english/2021-09/28/c_1310214478.htm

China’s development outline for women and children for the next decade
On 27 September 2021, the State Council of the People’s Republic of China published the outlines of development plans for women and children over the next decade. It plays a vital role in implementing gender equality and prioritizing children’s development, taking it to a higher level. According to the outline, by 2030 women will have equal rights to education, equal political rights, equal economic rights and interests, and equal access to full life cycle health services. And for children, the major focus would be health, safety, and education. (China outlines development of women, children, The State Council’s People Republic of China, 27 September 2021)
http://english.www.gov.cn/policies/latestreleases/202109/27/content_WS61516ea9c6d0df57f98e0f0f.html

China launches high-resolution Earth observation satellite
On 27 September, the China Aerospace Science and Industry Corporation launched a Kuaizhou 1A carrier rocket to place a high-resolution Earth-observation satellite in space. Kuaizhou is the largest solid-propellant rocket family in China that mainly relies on liquid fuel in contrast to the Long March series which mostly ran on liquid fuel. This mission marked the 11th flight of the Kuaizhou 1A. The weight of 20-meter Kuaizhou 1A is almost 30 metric tons and has the capacity to deliver 200 kilograms of cargo into a sun-synchronous orbit or 300 kilos into a low-Earth orbit. (China launches high-resolution Earth-observation satellite, China Daily, 27 September 2021, China's Kuaizhou 1A Launches Earth-Observation Satellite Atop Long March 3B Rocket, The Science Times, 27 September 2021)
https://www.chinadaily.com.cn/a/202109/27/WS61516e9ea310cdd39bc6bd63.html
https://www.sciencetimes.com/articles/33668/20210928/chinas-kuaizhou-1a-launches-earth-observation-satellite-atop-long-march-3b-rocket.htm

REGIONAL 
China and Philippines join hands to combat cross-border crimes 
On 28 September, the Chinese embassy in Manila announced that China and Philippines had agreed to strengthen cooperation to combat transnational crimes such as cross-border gambling, kidnapping and telecommunications fraud. During the latest video conference with the Philippine National Police, the Chinese Ministry of Public Security clarified that the two governments had come to a consensus on issue. The embassy spokesperson said: "The two sides agreed to further deepen mutual trust and cooperation in jointly cracking down on cross-border gambling, telecom and internet fraud, kidnapping, robbery, homicide, and other illegal and criminal activities." (China, Philippines to deepen cooperation on fighting transnational crime, Xinhua Net, 28 September 2021)
http://www.news.cn/english/2021-09/28/c_1310214761.htm

INTERNATIONAL
Chinese Foreign Minister expresses will to continue dialogue with NATO
On 28 September, Xinhua Net reported that the Chinese State Councilor and Foreign Minister Wang Yi met Jens Stoltenberg, the Secretary General of the North Atlantic Treaty Organization (NATO) on 27 September. At the video conference, China expressed its desire to continue communication with the NATO on the basis of equality and mutual respect to promote the stable development of their relationship. Wang said: “The key to promoting ties lies in adopting correct perceptions towards each other. There is no need for the Asia-Pacific region to establish any new military bloc, neither should there be confrontation instigated among major countries or any "small circle" be formed aimed at inciting a new Cold War.” (China ready to continue dialogue with NATO on equality, mutual respect basis: FM, Xinhua Net, 28 September 2021)
http://www.news.cn/english/2021-09/28/c_1310214760.htm

China and the EU deepens ties over green cooperation 
On 27 September, China and the European Union held the second High-level Environmental and Climate Dialogue. The Chinese Vice-Premier Han Zheng and the Executive Vice President Frans Timmermans agreed to deepen ties between China and the EU and extend their green cooperation. Han also reaffirmed that China will extend its support to developing countries and help them achieve their green and low0carbon energy development goals. He also reiterated that China will stop building all coal-fired power projects in foreign countries. He said: “China has adopted a series of major moves to ensure that the goal of peaking carbon dioxide emissions and achieving carbon neutrality can be reached on schedule.” (China, EU hold environment, climate dialogue, Xinhua Net, 27 September 2021)
http://www.news.cn/english/2021-09/27/c_1310213089.htm

Xi Jinping talks about building a global innovation network
On 24 September 2021, President Xi Jinping delivered a speech via video link at the opening ceremony of the 2021 Zhongguancun Forum. The speech sparked and attracted attention and heated discussions on opportunities and challenges in science and technological development. Xi focused on strengthening the international exchanges in the field of science and technology and form a “global innovation network”. (President says nation will enhance basic research and global cooperation, China Daily, 28 September 2021)
https://www.chinadaily.com.cn/a/202109/28/WS61527007a310cdd39bc6bff9.html

China calls out WTO ruling in a row with the US
China condemned a World Trade organization ruling in a row with the US over the limit on the import of solar panels. In a private meeting, a Chinese delegate called it "erroneous and dangerous". He expressed "deep concern with the systematically harmful findings made by the panel report." (China calls WTO ruling 'dangerous' in solar cell row with U.S., Reuters, 27 September 2021)
https://www.reuters.com/business/energy/china-calls-wto-ruling-dangerous-solar-cell-row-with-us-2021-09-27/