Daily Briefs


Photo : Global Times/ AFP

27 June 2022 | Monday | China Reader Evening Brief | Vol.1, No. 220

G7 leaders pledge to raise $600 billion funding to compete with China’s BRI

The Group of Seven (G7) leaders promised to raise $600 billion in public and private funds over the next five years to counter China’s Belt and Road Initiative.

IN BRIEF
By Avishka Ashok

INTERNATIONAL
G7: Leaders pledge to raise $600 billion funding to compete with China’s BRI
On 26 June, the leaders of the Group of Seven vowed to raise $600 billion in public and private funding over the course of five years to finance the development of infrastructure in developing nations and to compete with China's more established, multi trillion-dollar Belt and Road initiative. At the G7 summit, which was held this year at Schloss Elmau in southern Germany, US President Joe Biden and other G7 leaders inaugurated the newly renamed "Partnership for Global Infrastructure and Investment." The US, according to Biden, will mobilise $200 billion in grants, federal funds, and private investment over the course of five years to support initiatives in low- and middle-income nations that work to combat climate change, advance gender equity, advance global health, and strengthen digital infrastructure. (“G7 aims to raise $600 billion to counter China's Belt and Road,” Reuters, 27 June 2022)

Afghanistan: China’s first batch of aid reaches earthquake hit Khost city
On 27 June, an officer from the office of the state minister for disaster management and humanitarian affairs Mohammad Salim Haqqani announced that the first batch of food aid donated by China’s MCC-JCL Aynak Minerals Company Ltd. (MJAM) reached Afghanistan’s earthquake-hit areas. Haqqani said: “We are thankful to all aid agencies, domestic and international organizations which provided aid to us at this difficult time when we are facing an emergency situation, we are grateful as they delivered a lot of assistance.” China has also sent USD 7.5 million in emergency humanitarian aid to Afghanistan and is working closely with the interim government to ensure the aid reaches the needy in time. (“Chinese firm donates food aid to Afghan quake victims,” Xinhua Net, 27 June 2022)

Guayana: China celebrates 50 years of diplomatic relations 
On 27 June, China’s President Xi Jinping exchanged a congratulatory message with the President of Guyana Mohamed Irfaan Ali as the countries celebrated 50 years of diplomatic relations. President Xi noted that the relations with Guyana had resulted in significant development and deepening of political mutual trust. Xi said: “Ever since the onset of the COVID-19 pandemic, the people of the two countries have worked together with solidarity and mutual assistance, writing a new chapter of China-Guyana friendship.” Ali reaffirmed Guyana’s adherence to the One-China principle and pledged to deepen the bilateral relations in the coming years. Ali said: “Over the past 50 years, Guyana and China have always adhered to the principle of mutual respect, equality and mutual benefit, and the traditional friendship between the two countries has withstood the test of time.” (“Chinese, Guyanese presidents exchange congratulations on 50th anniversary of diplomatic ties,” Xinhua Net, 27 June 2022)

Abu Dhabi: Etihad Airways resumes direct flights from Beijing 
On 26 June, senior vice president of Global Sales & Cargo at Etihad Aviation Group Martin Drew stated that from 29 June, direct passenger flights between Abu Dhabi and Beijing will once again be provided by Etihad Airways, the national airline of the United Arab Emirates. The airline will fly a Boeing 787 Dreamliner, one of the most fuel-efficient planes in the world, once a week. Drew said: "Etihad Airways is delighted about the resumption of passenger services between Abu Dhabi and Beijing. China has always been an important strategic market for Etihad and the resumption of direct flights between the two capital cities will further strengthen the comprehensive strategic partnership between China and the UAE." (“UAE's Etihad Airways to resume direct flights between Abu Dhabi, Beijing, Xinhua Net, 26 May 2022)

The US: NATO's strategy document to be strong against China
On 26 June, Reuters reported that a White House official stated on Sunday that the US is certain that "strong" language against China will be included in the new NATO strategy document. The official added that discussions regarding how to refer to Beijing were still ongoing. NATO is currently working on a new strategic concept, a document that outlines its goals and objectives, which will be disclosed during a summit in Madrid the following week. The official said: "They touched on China, which ... is going to be a broad theme for this trip," following a meeting between the US President Joe Biden and German Chancellor Olaf Scholz at a meeting of leaders of the Group of Seven rich democracies in Germany. (“U.S. confident Nato's strategy document will be "strong" on China, official says,” Reuters, 26 June 2022)

REGIONAL
Taiwan: Taipower considers increase the cost of electricity for the first time in four years 
On 27 June, the Ministry of Economic Affairs prepared to discuss the electricity rates in Taiwan as the industrial sector deals with a power price surge for the first time in four years due to the rising cost of fuel. The Commercial Times reported that the Taiwan Power Company had proposed to increase electricity costs for industrial users by eight per cent. The company may also increase the rates for large residential consumers. The decision may also impact the already affected production and supply of semiconductor chips. Taiwan mainly relies on imported coal and natural gas for its electricity production. The costs have surged in the past few years because of the war in Eastern Europe. (“Global chip hub Taiwan to raise power prices as fuel costs soar,” The Strait Times, 27 June 2022)

INTERNAL
Shanghai: City chief validates two-month lockdown after claiming victory over COVID-19
On 27 June, the Strait Times reported that Shanghai’s leader Li Qiang declared victory of the city against the COVID-19 pandemic and validated the two-month lockdown in the economic hub. Li addressed the Communist Party Congress and said: “Shanghai broke the repeated stalemate of the epidemic, realised and consolidated the fruits of dynamic clearance in society, and won the battle to defend Shanghai.” Li also appreciated President Xi Jinping’s timely decision and efficient handling of the crisis. (“Shanghai's leader calls tough Covid-19 curbs 'completely correct',” The Strait Times, 27 June 2022)

Ministry of Ecology and Environment: Measures called to stimulate investment growth
On 26 June, China’s Ministry of Ecology and Environment called for measures to stimulate investment growth in the environmental and ecological fields in an effort to stabilise the nation’s economy. The ministry emphasised the necessity to hasten the advancement of projects linked to air, water, soil, solid waste pollution control, nuclear and radiation security supervision, which are among the 102 key projects named for the country for the 14th Five-Year Plan period (2021-2025). According to the ministry, precise construction timetables for ongoing projects should be clarified and preliminary work for significant projects in the planning stage should be carried out more quickly. (“China to increase effective ecological investments,” Xinhua Net, 26 June 2022)

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