Daily Briefs


Photo : Global Times

2 March 2022 | Wednesday | China Reader Evening Brief | Vol.1, No. 129

China stresses negotiations to arrive at constructive political solution for Ukraine

Chinese Foreign Minister urges Ukraine and Russia to find a constructive solution to the crisis through negotiations.

IN BRIEF
By Avishka Ashok and Dincy Adlakha

INTERNAL
Green energy transition: China manufactures world’s first LNG dual-fuel crude carrier
On 1 March, Global Times reported that China State Shipping Corporation delivered world’s first LNG dual-fuel very large crude carrier to China’s northeast province Liaoning. The carrier is named ‘Yuan Rui Yang’ and marked a milestone in China’s journey of green, environment-friendly and energy-saving technologies. China has been trying to reduce its carbon emissions and move away from coal dependence. In such context, the carrier operated by COSCO is an important achievement as LNG is its main fuel. The carrier was developed through engineering procedures like cutting, welding, assembly of corrosion-resistant steel among others. (“World's first LNG dual-fuel VLCC delivered in Northeast China’s Dalian,” Global Times, 1 March 2022)

Hong Kong connectivity: Mainland starts special freight train to Hong Kong
On 2 March, the Chinese mainland started operations of a special freight train to Hong Kong. The train will increase connectivity and stabilize the supply of goods to Hong Kong. Operations will begin from Pinghu Railway Station in Shenzhen, Guangdong Province in south China. The train is specially introduced during COVID-19 when Hong Kong is facing a surge in the number of cases and its medical facilities are overburdened. (“Special freight train to help stabilize mainland supply of goods to Hong Kong,” Xinhua Net, 2 March 2022)

ECONOMY
Market liquefaction: China injects funds in money market to maintain liquidity
On 1 March, China’s central bank announced that it injected 300 billion yuan in February into the money market to maintain liquidity. The funds were induced through a medium-term lending facility to meet the liquidity demand from banking and other financial institutions at a sufficient level. The funds will mature in a year. This latest injection of funds into the market through the MLF tool introduced in 2014 will take the total outstanding MLF loan amount to 4.85 trillion yuan. Additionally, another 2.71 billion yuan was lent to financial institutions in February through the standing lending facility tool. (“China's central bank injects liquidity into market in February,” Xinhua Net, 1 March 2022)

INTERNATIONAL
US-Taiwan: US delegation including Mike Pompeo visits Taiwan
On 1 March, a bipartisan US delegation of previously defence and security officials reached Taiwan. This visit overlaps with another US delegation visit scheduled for 2 March by former US Secretary of State Mike Pompeo. Taiwanese media states that the visit is sudden and schedules were prepared only for meeting former US Secretary of State Mike Pompeo. Both the delegations are now scheduled to meet regional leader Tsai Ing-wen. White House Coordinator for Indo-Pacific Kurt Campbell states that the delegation has reached Taiwan to assure consistent support for peace in Taiwan Straits. Chinese mainland strongly opposed the US delegation visit to Taiwan. (Wang Qi and Yang Sheng, “Biden sends former officials to Taiwan to 'offset Pompeo', pacify DPP,” Global Times, 1 March 2022)

Ukraine: China stresses negotiations to arrive at constructive political solution
On 1 March, Chinese State Councilor and Foreign Minister Wang Yi spoke with Ukrainian Foreign Ministry Dmytro Kuleba on phone. He urged Ukraine and Russia to find a constructive solution to the crisis through negotiations. He also conveyed his condolences regarding the current situation and said that China is paying special attention to the casualties. Foreign Minister Kuleba emphasised China’s crucial role in the Ukraine issue and encouraged further good communication between the two countries. He also suggested China for efforts to reach a ceasefire. China maintained that expansion of military blocs will not lead to regional security and that security of any country cannot be assured at the expense of security of others. (“China calls for solution through negotiations, supports all constructive intl efforts: FM Wang Yi,” Global Times, 1 March 2022)

Russia: China’s coal imports decelerates
On 1 March, Reuters reported that Chinese traders have reduced coal imports from Russia as they attempt to sidestep the sanctions that have been placed on Russia after the raised tensions on the Ukrainian border. Meanwhile, coal prices in exporting countries like Indonesia, Australia and South Africa have increased and hit a record of USD 274 per tonne, marking a 15 per cent increase in the prices. A Chinese trader, engaged in coal purchase with Russia said: “Most banks have stopped issuing letters of credit after the SWIFT sanctions. As almost all contracts are dollar-denominated, we have no other way to make the payment.” (“China's Russian coal purchases stall as buyers struggle to secure financing,” Reuters, 1 March 2022)

Iran: China records highest purchase of oil since 2017
On 2 March, Reuters reported that Chinese oil sales from Iran exceeded 7,00,000 barrels per day in January and even broke records from its highest purchase in 2017. According to the data revealed by the tanker tracker, the purchase of oil from Iran has been increasing for the past few months. The report observed that the increase in sales took place during the revival talks of JCPOA. The increased dependence on Iranian oil may also bring down the price of crude oil that shot up due to the tension between Russia and Ukraine. (“China buys more Iranian oil now than it did before sanctions, data shows,” Reuters, 2 March 2022)

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