Daily Briefs


Photo : Xinhua/Wang Jianwei

22 February 2022 | Tuesday | China Reader Evening Brief | Vol.1, No. 121

China-Russia gas deal

China-Russia signs the new pipeline project bringing a new edge to the geopolitical tensions

IN FOCUS
By Keerthana Nambiar

China-Russia gas deal

On 4 February, China and Russia signed a 30-year contract for gas supply via a new pipeline. 'It was signed between Gazprom and China National Petroleum Corporation (CNPC) as a long-term sales and purchase agreement for natural gas to be supplied via the far Eastern route. 

In 2014, both these organizations signed a 400-billion-dollar agreement to build the 'Power of Siberia,' a pipeline with 3,000-kilometer in Russia and 5,000 kilometers in China. The project connects Chayandinskoye field, Blagoveshchensk, and Kovyktinskoye field marking the border between 'Russia and China. By December 2019, Russia started supplying gas to China; it is expected to supply up to 38 billion cubic meters a year by 2025. In 2021, Russia exported 16.6 billion cubic meters of gas to China. Power of Siberia contributes to the socio-economic development of Russia's the Far East. 

The new pipeline, ''from Siberia's Yamal Peninsula, Russia's biggest gas reserves will go through Mongolia to China. Unlike the 'Power of Siberia 1' which is fully owned by Gazprom, the 'Power of Siberia 2 Project' is owned by both China National Petroleum and Gazprom. 

Russia’s gas diversification
Russia is the world's largest natural gas supplier, and the European markets are the major recipients of these deliveries. Europe accounts for annual consumption of 541 billion cubic meters. Despite the recent tensions regarding Russia's new pipeline, Nord Stream 2 and soaring gas prices, the Kremlin looks for diversifying from Europe and attach itself to China. 

Both Russia and Europe are mutually dependent on each other. With the ongoing crisis in Ukraine, there has been significant upward pressure on Europe. If Russia invades Ukraine, Europe will face intense pressure from the US and its allies to impose sanctions on Moscow resulting in serious consequences. The drop in gas consumption will put Russia in an economic crisis. 

Moscow is taking steps to break its dependence on Europe and look forward to bolstering an energy alliance with China. China consumes about 331 billion cubic meters of gas. With the climate change pledges coming in, Beijing is rapidly trying to reduce its dependence on coal estimating the demand for gas to double by 2030s. The new pipeline project displays the long-term partnership on the increasing energy interdependency between China and Russia. 

China's ambition to build a 'Polar Silk Road' through sustainable development of the Arctic is now under the umbrella of China-Russia partnership. In the joint statement, the leaders declared that "Friendship between the two states has no limits, there are no 'forbidden' areas of cooperation." This builds an era of geopolitical order governed by natural gas. 

References
"China, Russia enhance 'growing energy partnership’ with gas deal during Xi Jinping, Vladimir Putin meeting.” South China Morning Post, 4 February 2022
“Russia, China agree 30-year gas deal via new pipeline, to settle in euros,” Reuters, 4 February 2022
“Gazprom and CNPC sign agreement to supply Russian pipeline gas to China via Far Eastern route.” Gazprom, 4 February 2022
“Closer energy partnership gets spotlight in Xi-Putin summit in Beijing,” Global Times, 4 February 2022
“Russian gas boost fuels Moscow's China pivot,” DW, 12 January 2022
“Power of Siberia,” Gazprom

IN BRIEF
By Dincy Adlakha and Avishka Ashok

INTERNAL
“Olympics weren’t China’s big event of the year,” says AP News
On 22 February, Associated Press published a report titled ‘For Chinese leaders, Olympics were not 2022’s big-ticket item.’ The report says that for the Communist Party of China, the upcoming meeting in the fall that cements President Xi Jinping’s position as one of the most powerful leaders is the major event of 2022. The way China handled Winter Olympics despite the diplomatic boycott led by the US over human rights violations shows the tough stance of the government. The party congress held in every five years is expected to reaffirm Xi’s position as the core and “one of the most dominant leaders of the China’s Communist era.” (“For Chinese leaders, Olympics weren’t 2022′s big-ticket item,” Associated Press News, 22 February 2022)

China’s meteorological center issues yellow alert for heavy snow
On 22 February, National Meteorological Center issued a yellow alert for heavy snow in some regions of China. The meteorological center warned to a three to ten centimeters of snow accumulation upto 15 centimeters in some regions. The authorities further instructed the residents to stay indoors and take necessary precautions related to roads, railways, electricity and telecommunications. (“China renews yellow alert for blizzard,” Xinhua Net, 22 February 2022)

REGIONAL
Taiwan removes ban on sale of agricultural products from Fukushima
On 21 February, the food and drug administration of Taiwan approved its decision to remove the ban on import of Japanese food and agricultural products from five prefectures in Japan. The ban was put in place in 2011 after the meltdown of the powerplant in Fukushima that endangered the quality of safety of the products from the affected regions. The removal of the ban was suggested earlier this month. With the official approval to allow imports from Fukushima, Gunma, Chiba, Ibaraki and Tochigi. However, mushrooms, wild birds and other meat products from these regions are prohibited from being sold in Taiwan. (“Taiwan officially allows imports of Japanese food from nuclear disaster affected areas,” Xinhua Net, 21 February 2022)

Chinese nationals tested for coronavirus in Laos before entering the country
On 21 February, Chinese medical teams began testing Chinese nationals in Laos for the coronavirus before they boarded their flights to get to China. The nucleic acid testing team is located in three hotels in the capital city and are testing the passengers before they enter China. The move is a part of the joint assistance between China and Laos aimed at providing testing services, monitoring the public health and preventing the further spread of the virus by using China’s experience in dealing with the pandemic. (“Chinese experts conduct COVID-19 tests in Laos for returning Chinese nationals,” Xinhua Net, 21 February 2022)

China imposes sanctions on Lockheed and Raytheon over arms sales to Taiwan
On 21 February, Chinese Foreign Ministry spokesperson announced sanctioning two companies tinder sanction sover arms sales to Taiwan. The sanctions are placed on Lockheed Martin Corp and Raytheon Technologies Corp over a 100-million dollars arms sales amde on 7 February 2022. The Ministry spokesperson says, the sales “undermined China's security interests, seriously undermined China-US relations and peace and stability in the Taiwan Strait.” (“Beijing sanctions Lockheed, Raytheon again over Taiwan arms sales,” Reuters, 21 February 2022)

INTERNATIONAL
Ministry of National Defense responds to Australian accusations of intimidation at sea
On 21 February, China’s Ministry of National Defense Spokesperson Senior Colonel Tan Kefei responded to Australia’s accusation of Chinese acts of intimidation against the country. Tan Kefei revealed that China was falsely accused of conducting intimidating acts and further explained that the Australian aircraft was at fault for causing panic by dropping sonobuoys near the Chinese vessel. He said: “During the entire course, the Chinese vessels maintained safe, standard and professional actions, which conform to the relevant international law and international practice.” (“UPDATE: Australia’s claim about PLA vessel’s laser deployment false: Chinese authorities,” Global Times, 21 February 2022)

Chinese Foreign Minister urges US to not send “wrong signals” on the Taiwan issue
On 22 February, Chinese Foreign Minister Wang Yi made a telephonic conversation with US Secretary of State Anthony Blinken regarding America’s Indo-Pacific strategy. Wang said that the US regional strategy sents “wrong signals in terms of China containment.” He further said that “China once again urges the US to take concrete actions to reflect on the series of commitments made by President Biden.” (“China warns US against including Taiwan in its Indo-Pacific plan,” The Straits Times, 22 February 2022)

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