Daily Briefs


Photo : Global Times

28 June 2022 | Tuesday | China Reader Evening Brief | Vol.1, No. 221

China responds to US accusations of debt traps caused by the BRI

China's Foreign Ministry Spokesperson defends the Belt and Road Initiative while accusing the US of causing financial traps for countries.

IN BRIEF
By Avishka Ashok and Arshiya Banu

INTERNATIONAL
The US: China responds to accusations of BRI causing debt traps
On 27 June, China’s Foreign Ministry spokesperson Zhao Lijian addressed a press conference and responded to the US accusations against the Chinese Belt and Road Initiative. Zhao opposed the accusation of the initiative being a debt trap and held the US responsible for the creation of debt traps in the developing world. He further elaborated on the initiative and said that the project always held extensive consultations, encouraged joint contribution and shared benefits with the partner countries. He also quoted the World Bank report according to which the BRI will produce an annual revenue of USD 1.6 trillion around the world, if all projects are completed by 2030. It would amount to 1.3 per cent of the global GDP, out of which, 90 per cent would be enjoyed by the partner countries. The BRI was also hailed to improve the stands of living of the people in the partner countries, lifting 7.6 million people from extreme poverty and 32 million from moderate poverty. He said: “The U.S.'s expansionary monetary policies, financial innovation with lax supervision and ill-intended short-selling are weighing down developing countries with debt burden and the very reason some countries have fallen into the debt trap.” (“U.S. should be held responsible for creating "debt trap": FM spokesperson,” Xinhua Net, 28 June 2022)

Afghanistan: Foreign Minister pledges to support government and send aid 
On 27 June, China’s Foreign Minister Wang Yi held a phone conversation with Afghanistan’s Acting Foreign Minister of the Interim Government Amir Khan Muttaqi and expressed sympathies and condolences over the earthquake that killed 1500 people last week. Wang emphasized the efforts of the local governments, social organizations and other enterprises in China who worked efficiently to deliver emergency aid to Afghanistan on time. While stressing on China’s pure intentions in Afghanistan, Wang Yi pledged to hold the second meeting of the working-level contact mechanisms on humanitarian assistance and economic reconstruction. He hoped for the two countries to steadily improve and build on the pragmatic cooperation in economy and trade, agriculture, mining, interconnectivity and capacity building. (“Chinese FM talks with Afghan acting FM over phone,” Xinhua Net, 28 June 2022)

The US: Military responds to China’s complaints on US activity in the Taiwan Strait
On 28 June, the US military responded to China's complaints that the passage of a US Navy aircraft through the Taiwan Strait last week jeopardized peace and stability and claimed that it showed the US's commitment to a free and open Indo-Pacific. The P-8A anti-submarine plane was flying over a sensitive canal, and China alleged to have sent planes to monitor and warn the plane. The US Indo-Pacific Command said: “The United States will continue to fly, sail, and operate anywhere international law allows including within the Taiwan Strait. The aircraft's transit of the Taiwan Strait demonstrates the United States' commitment to a free and open Indo-Pacific.” (“US says Taiwan Strait flight shows commitment to open Indo-Pacific,” The Strait Times, 28 June 2022)

REGIONAL
Philippines: Davao city offers preferential policies to Chinese investors 
On 28 June, Xinhua Net reported that Davao city in Philippines was offering preferential policies to Chinese investors in the agriculture, food processing and manufacturing sectors. The Director of Davao City Investment Promotion Centre April Marie Dayap explained that, in a bid to attract more investments from Chinese businessmen, the city was offering preferential policies to Chinese businessmen to invest in the country. Dayap said: “We export a lot of agricultural products to China, and many Chinese businesses are being established in Davao City. We would like to invite more Chinese people to come here to discover what we can offer and what they can do.” The city has an abundance of agricultural products and raw materials while offering low labor costs, making agribusiness, food production and processing units extremely viable in the city.  

The Chinese Consul General Li Lin referred to the relations between the two countries and said: “We are also helping locals grow bananas locally, providing them with start-up capital, banana seedlings, fertilizers, pesticides, and technical guidance. Moreover, we are supporting aboriginal women to learn and improve the production skills of ethnic costumes and characteristic handicrafts to increase their income and pass on their culture.” (“Philippines' Davao City eyes more Chinese investments in agriculture, manufacturing,” Xinhua Net, 28 June 2022)

INTERNAL
World Canal Cities Forum: China urges countries to work on protecting canals 
On 27 June, the Director of the Office of the Foreign Affairs Commission of the CPC Central Committee Yang Jiechi attended the World Canal Cities Forum in Yangzhou and called for greater canal protection. Yang noted that canals were great projects created by humanity and can assist in injecting impetus into the development of canal cities while building on people-to-people exchanges. The forum was held under the theme of “heritage protection and sustainable development of canal cities” and aimed to discuss the implementation of sustainable development in canal cities. The Grand Canal in China has a history of more than 2,500 years and was used as a transportation artery in ancient China. (“Senior Chinese official stresses canal protection,” Xinhua Net, 27 June 2022)

COVID-19: Hashtag deleted after online discussion on COVID-19
On 28 June, the Asahi Shimbun reported that the hashtag "the next five years" was removed by digital censors after an online debate erupted in reaction to reported remarks from Beijing's Communist Party chief Cai Qi claiming that the capital city will implement pandemic prevention regulations over the course of the next five years. Prior to the national party congress, which will take place this fall, the city-wide party congress is held once every five years. Members review the previous five years' work and set goals for the next five years. (“Censors delete discussion of Beijing’s future COVID control,” The Asahi Shimbun, 28 June 2022) 

Public Security Ministry: Former colleague of Xi appointed as the head of ministry of public security
On 28 June, the Strait Times reported that before a twice-a-decade leadership assembly, China appointed Mr. Wang Xiaohong as minister of public security, transferring control of the country's hard power to a former colleague of President Xi Jinping. According to a statement on the National People's Congress website, Mr. Wang, 64, was appointed last Friday (June 24), taking Mr. Zhao Kezhi's place, who has attained retirement age (68). Mr. Wang also rose to the position of deputy director of the Central Political and Legal Affairs Commission, which is the party's main legal body. (“Chinese President Xi Jinping names ally to head public security ministry,” The Strait Times, 28 June 2022)

Shandong: Rail service halted due to heavy rains in China’s second most populous region
On 27 June, the Strait Times reported that heavy downpours have pounded more than ten cities in the Shandong region of China, flooding streets, disrupting traffic, and renewing calls for better drainage in built-up areas where concrete and asphalt trap water. The meteorological service issued thunderstorm warnings as vehicles in the north-eastern province were stalled in waist-deep water, as seen in a video posted on the social media platform Weibo. With more than 100 million residents, Shandong is the second most populous province in China. Since Sunday, rail service has also been disrupted due to the region's first significant downpours of the rainy season, which started weeks ago in southern China. (“Heavy rain, floods bring renewed calls in China for 'sponge cities',” The Strait Times, 27 June 2022)

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