IN FOCUS
By Avishka Ashok

Foreign Minister Wang Yi’s visit to the Pacific Islands

On 16 May, China’s Foreign Minister Wang Yi and the Foreign Minister of the Solomon Islands Jeremiah Manele held a joint press conference and appreciated the enhanced relationship between the countries. Wang is visiting Solomon Islands, Kiribati, Samoa, Fiji, Tonga, Vanuatu, Papua New Guinea and East Timor as he tries to build a suitable position for China’s economic involvement with the Pacific Island countries. Kiribati, which had strictly closed its borders due to the coronavirus pandemic, made an exception for Wang Yi and his 20 colleagues in the delegation. They are expected to arrive at a consensus on sustainable fishing in the UNESCO protected Phoenix Islands in the country.

China’s “Four upholdings” for the Pacific countries
Wang referred to the growing relationship and said that China would continue to follow the “four upholdings” in developing its relations with the Pacific Island countries. The “four upholdings” refer to China’s practices in cooperating with the Pacific Island countries; which are upholding equal treatment, mutual respect, win-win cooperation and openness and inclusiveness in developing relationships. Wang Yi explained that China has always viewed all countries equally, regardless of their territorial size and political prowess. He also highlighted that China had never interfered in the political affairs of the countries nor sought its selfish interests in the region. Furthermore, he described China’s keenness in providing a win-win cooperation and building the infrastructure of the Pacific Island countries. Lastly, he stressed on creating an environment for cooperation and not destructive competition.

Eight consensuses with the Solomon Islands
During his visit to the Solomon Islands, the two countries agreed on eight consensuses after in-depth and detailed discussions. The eight were explained in detail by Wang Yi during the joint press conference.
 
First, the countries agreed to strongly establish the political foundation of their bilateral relations. China pledged to firmly support Solomon Island’s sovereignty an independence while protecting each other’s core interests and paths of development.
 
Second, both countries agreed to heighten their cooperation in the Belt and Road Initiative and help accelerate their personal development and revitalization. Wang said: “China will take earnest measures to facilitate two-way trade and investment, expand the Solomon Islands' export of competitive products to China and support Chinese enterprises in investing in the Solomon Islands.” He also promised to provide zero-tariff treatment on 98 per cent of Solomon Islands’ exports to China.
 
Third, China and Solomon Islands agreed to participate constructively in the Global Development Initiative which had been proposed by China. China also promised to help rebuild the capital city of Honiara and continue the support provided for Chinese projects such as the 2023 Pacific Games Stadium and other healthcare and welfare projects.
 
Fourth, the countries agreed to help each other maintain a stable and steady domestic politics within the country; aiming at protecting the development paths of the countries. China therefore, pledged to continue to conduct law enforcement and security cooperation in Solomon Islands.
 
Fifth, China and Solomon Islands confirmed their cooperation in promoting connectivity. The countries agreed to mutual visa exception, cooperate in civil aviation and provide greater opportunities for people-to-people exchanges.
 
Sixth, China and Solomon Islands agreed to work together on Climate Change and provide support at an international level to enhance their capacities to cope with the impacts of climate change. The delegations identified marine protection, disaster prevention and mitigation, emergency responses and blue economy as the primary areas of cooperation.
 
Seventh, the countries agreed to cooperate on sub-national exchanges. Post the establishment of sister-city relations between Honiara and Jiangmen, more opportunities for exchanges at a provincial level have opened to the common people of the two countries. Wang Yi encouraged the establishment of sister-city relations with more cities in the two countries to advance the pace of sub-national exchanges.
 
Eighth, the countries decided to defend the interests of other developing nations and work towards true multilateralism. They pledged to fight against zero-sum games, bullying, coercion, interference in internal affairs and sincerely uphold the international system by safeguarding the legitimate rights of the developing countries.

Conclusion
China under President Xi Jinping has been expanding the country’s foreign relations, especially with the Pacific Island countries; much to the dismay of Australia and other Western countries. With the Belt and Road Initiative, Xi has roped in the Pacific countries and plans to connect them with the Chinese and European markets. The Pacific countries have been accepting of the Chinese support and have been welcoming the low-cost benefits offered by the Chinese initiatives.

References:
“Chinese FM underlines "four upholdings" in ties with Pacific island countries,” Xinhua Net, 27 May 2022
“China’s FM visits Kiribati, where fishing ground is at stake,” The Asahi Shimbun, 27 May 2022
“China, Solomon Islands reach eight-point consensus,” Xinhua Net, 27 May 2022
“What’s at stake for China on South Pacific visit?,” The Asahi Shimbun, 26 May 2022
 

IN BRIEF
By Avishka Ashok and Arshiya Banu

INTERNAL
Hong Kong: New leader John Lee prepares to meet with Central Government officials 
On 28 May, the newly elected leader of Hong Kong John Lee visited Beijing and will be holding a meeting with the central government as he prepares to take his position on 1 July 2022. The four-day trip will result in the official appointment of Lee as the Chief Executive of Hong Kong city. Lee is also prepared to present President Xi Jinping with a list of team members who will be appointed post Xi’s approval. Lee will have to quarantine until Monday to meet the officials from the central government. (“Hong Kong's next leader John Lee visits Beijing for official nod,” The Strait Times, 28 May 2022)

ECONOMY 
Foreign Exchange: Data External portfolio investment assets reaches USD 979.7 billion by 2021
On 27 May, China's foreign exchange regulator, the State Administration of Foreign Exchange (SAFE), released data showing that the country's external portfolio investment assets, excluding reserve assets, totaled USD 979.7 billion US by the end of 2021. According to the data, USD 648.4 billion was invested in stock and USD 331.3 billion was invested in bonds. External portfolio investment assets owned by non-bank financial institutions reached 390.4 billion USD, accounting for 40 per cent of the total. Banks held USD 238.1 billion, or 24 percent of the total. China's Hong Kong Special Administrative Region, the United States, the Cayman Islands, the British Virgin Islands, and the United Kingdom were the top five recipients of Chinese investments. (“China's external portfolio investment assets top 979 bln USD by end of 2021,” Xinhua Net, 27 May 2022)

Medical products: The US extends tariff extension on Chinese products used for COVID-19
On 27 May, the US Trade Representative’s Office (USTR) announced its decision to extend the tariff exclusions on Chinese-made medical products for another six months. Products such as facemasks, surgical gloves, hospital gowns fall under the tariff exclusion and are extensively used to address the COVID-19 pandemic in the US. The USTR explained that the products were provided with an exclusion from tariffs of upto 25 per cent and were initiated by the former President Donald Trump in 2020. After an initial extension, they are due to expire on 31 May 2022. (“U.S. extends tariff exclusions on Chinese COVID-19 medical products,” Reuters, 28 May 2022)

TECHNOLOGY 
Ministry of Industry and Information Technology: China's lithium-ion battery output reaches 95 GWh over a two-month period
On 27 May, the Ministry of industry and Information Technology released data which showed that China's lithium-ion battery output reached 95 GWh in March and April as the strong development momentum of the new energy vehicle sector continued to propel expansion. The output of the batteries used for power storage and for powering new energy vehicles was more than 10.5 GWh and 34.6 GWh, respectively. The battery exports totalled 42.3 billion yuan over the two-month period (about USD 6.28 billion). For the past five years, China has become the world's largest consumer of lithium-ion batteries. According to the ministry, the industry's entire production value hit 600 billion yuan last year. (“China's lithium-ion battery output tops 95 GWh in March-April,” Xinhua Net, 27 May 2022)

REGIONAL
Taiwan: Ministry of Culture stresses on need to preserve traditional languages
On 28 May, the Strait Times reported that the Taiwanese cabinet had approved a budget plan worth NTD (New Taiwan Dollar) 30 billion to develop the languages used by the ethnic Taiwanese groups. The plan was approved after the citizens expressed concern over the prioritization of English language over other traditional Taiwanese languages after a pledge was made to make Taiwanese fluent in English by 2030. The Culture Ministry of Taiwan, the plan would put Taiwanese Hokkien, Taiwanese sign languages, Hakka, Matsu and other indigenous languages at risk. The Ministry of Culture, the Council of Indigenous Peoples, the Hakka Affairs Council and the Ministry of Education opposed the plan and called for revitalizing, preserving, and developing the ethnic and traditional languages. (“Taiwanese support government's plan to promote languages at risk of disappearing,” The Strait Times, 28 May 2022)

INTERNATIONAL
The US: Chinese Foreign Ministry spokesperson responds to Blinken’s accusations
On 27 May, the Chinese government accused America’s top diplomat of spreading fake news by calling China “the most serious long-term challenge to the international order,” and questioned the US’ sincerity in trying to avert conflict. Foreign Ministry spokesperson Wang Wenbin also asked the US to let go of its ambition to contain China and to stop saying and doing things that have harmed the two nations’ relationship, which is at its lowest. US Secretary of State Antony Blinken had stated that China has undermined the world order that has enabled it to prosper and become the world's second-largest economy, adding that the Biden administration will “shape the strategic environment around Beijing to advance our vision for an open and inclusive international system”. (“Beijing accuses Blinken of spreading fake news about China,” The Strait Times, 27 May 2022)

North Korea: Beijing criticizes sanctions despite China and Russia’s veto
On 27 May, the permanent representative of China to the United Nations (UN) Zhang Jun stated that sanctions will not help resolve the Korean Peninsula's nuclear issue but will instead lead to an "escalation" with humanitarian repercussions. Zhang made the comments after China vetoed a UN resolution led by the United States to impose strict sanctions on the Democratic People's Republic of Korea (DPRK) in response to its missile tests. Zhang said: "Facts have proved that dialogue and negotiation is the only way to solve the problem," and added that "additional sanctions against the DPRK will only add to the misery of the DPRK people, and in this sense, neither right nor humane." Zhang has also accused the US of failing to follow through on past talks between Washington and Pyongyang. (“Chinese UN envoy: sanctions won't solve Korean Peninsula nuclear issue,” CGTN, 27 May 2022)

The UN: China appreciated for its assistance in peacekeeping operations
On 27 May, UN Under-Secretary-General for Peace Operations Jean-Pierre Lacroix commended China's assistance for UN peacekeeping operations. He said: "China is one of our main supporters, really both in terms of the financial contributions, also in terms of the contributions in the field with more than 2,000 peacekeepers," at the UN headquarters in New York. Lacroix stated that China is one of the members "that also provides us with the voluntary funding," which he described as “extremely important” as it enables the UN “to carry out the number of reforms and new work trends that are indispensable to peacekeeping reforms." (“UN peacekeeping chief praises China's support,” Xinhua Net, 27 May 2022)