IN BRIEF
By Avishka Ashok and Arshiya Banu
 

INTERNATIONAL
Shanghai Cooperation Organization: China's Foreign Minister initiates a five-point proposal to build a shared community
On 29 July, China’s Foreign Minister Wang Yi attended the meeting of the Council of Foreign Ministers of the Shanghai Cooperation Organization and stressed on the changing dynamics of the international order and the rising regional challenges. Wang said: “Chinese President Xi Jinping has grasped the pulse of historical development and echoed the voices of people from all over the world. He proposed the Global Development Initiative and the Global Security Initiative, contributing Chinese wisdom and public goods to solving the problems of the times, which has received positive responses from the international community, including the SCO member states.”

Wang Yi also highlighted China’s objective of building a closer SCO community with a shared future and upholding the Shanghai spirit. Wang initiated a five-point proposal to work towards this goal. First, cementing solidarity and coordination. Wang said: “They should firmly support each other in following the path of development in line with national conditions, back each other in taking major measures to maintain social stability, and work together to create a sound environment for the development and revitalization of countries in the region.” Second, he stressed on regional security and urged the member countries to implement the concept of common, comprehensive, cooperative and sustainable security while opposing confrontation between factions and undermining regional stability. 

Third, Wang Yi highlighted the need to promote sustainable development and pursuing people-centred development, and continuing cooperation in poverty reduction and green development. Fourth, he emphasized the need to focus on multilateralism. He said: “They should step up multilateral coordination and cooperation, reject unilateral sanctions and "long-arm jurisdiction," and defend the shared interests and development space of emerging markets and developing countries.”

Lastly, China called for expanding the group steadily and gradually. Wang Yi suggested keeping the geographical factors, the observer states, dialogue partners while expanding the group and its capacity. 

(“Chinese FM attends SCO foreign ministers' meeting in Tashkent,” Xinhua Net, 30 July 2022; Chinese FM advocates closer SCO community with shared future,” Xinhua Net, 30 July 2022)

Germany: Eight projects signed at Forum for Industrial Cooperation and Development 
On 30 July, Xinhua Net reported that the China-Germany Forum for Industrial Cooperation and Development in Beijing had resulted in eight projects which are expected to draw an investment worth USD 297 million dollars. The projects have an industrial output value of 11.5 billion yuan per year. VASTALTA’s CEO, one of the companies within the network said: “China's carbon emission peak and carbon neutrality goals provide great opportunities for us.” Since its inception in 2018, the Sino-German Industrial Park has resulted in over 80 companies setting up their branched in China. (“Eight projects worth nearly 300 mln USD signed at China-Germany forum,” Xinhua Net, 30 July 2022)

Poland: President Xi encourages trade ties and traditional friendship 
On 29 July, China’s President Xi Jinping held a telephonic conversation with the Polish President Andrzej Duda and discussed the trade relations and positive progress made by the countries in the past years. Xi noted that the countries had agreed to advance bilateral relations during the Beijing Winter Olympics and had also reached other important consensus. Xi further expounded that China perceives Poland as a preferred partner for trade in Europe and aims to continue close communication and enhance political mutual trust between the countries. Xi said: “”The two sides should work hard for the early launch of the China-Central and Eastern European countries (CEEC) wholesale market for agricultural products, and actively cooperate in planning and organizing relevant events to mark the 10th anniversary of China-CEEC cooperation mechanism, so as to lay a solid foundation for cooperation in the next decade.” (“Xi holds phone talks with Polish president,” Xinhua Net, 29 July 2022)

Iran: President Xi Jinping discusses cooperation with President Raisi
On 29 July, China’s President Xi Jinping discussed the present challenges and the need for international equity and justice during his telephonic conversation with Iranian President Ebrahim Raisi. Xi noted the strengthening of cooperation between China and Iran and said: “China views its relations with Iran from a strategic perspective and stands ready to work with Iran to push for new progress in the China-Iran comprehensive strategic partnership.” Additionally, he stressed on supporting each other’s core interests and uphold the policy of non-interference in each other’s internal affairs. Iran further extended its support to China on the Global Development Initiative and Global Security Initiative. (Xi talks with Iranian president over phone,” Xinhua Net, 29 July 2022)

The US: Chinese embassy condemns remarks by the US Secretary of the Navy
On 30 July, the Asahi Shimbun reported that after a senior US Navy officer decried Beijing's increasingly belligerent tactics in the South China Sea, China retaliated by accusing the US of engaging in "navigation bullying" by stationing military forces in the disputed waterways. The Chinese Embassy in Manila strongly condemned the comments made by the US Secretary of the Navy Carlos Del Toro, stating they were “unfounded accusations against and maliciously smeared China” and that they inflated the “China threat.” Del Toro emphasised how Beijing has violated international law by invading the territorial waters of its Asian neighbours in an interview with The Associated Press on Tuesday while in Manila. (“China accuses U.S. of ‘navigation bullying’ in South China Sea,” The Asahi Shimbun, 30 July 2022)

The US: White House says it sees no indication of impending Chinese military activity against Taiwan
On 30 July, the Strait Times reported that when White House national security spokesman John Kirby was asked about a potential trip to the island by US House of Representatives Speaker Nancy Pelosi, he stated that the US has seen no indication of impending Chinese military activity against Taiwan. He said: "(We've) seen no physical, tangible indications of anything untoward with respect to Taiwan." A prospective trip to Taiwan has not been confirmed by Pelosi. In a phone call on Thursday between President Joe Biden and Chinese President Xi Jinping, tensions around Taiwan dominated the conversation. Xi cautioned against handling Taiwan in a reckless manner. (“No evidence of looming Chinese military action against Taiwan, US official says,” The Strait Times, 30 July 2022)

REGIONAL
Taiwan: Expert talks about Pelosi’s trip to Taiwan
On 30 July, the Asahi Shimbun reported that the controversy caused by House Speaker Nancy Pelosi's prospective trip to Taiwan misses the mark because the main issue at hand should be how the United States and China handle their differences to prevent the risks of conflict from growing out of control. Pelosi's planned visit has sparked a great deal of discussion about China's possible diplomatic and military measures. But if it does happen, the visit to Taiwan will just add to the tension that has been looming over the island’s democracy for years. A defence studies expert Arthur Zhin-Sheng Wang from Taiwan’s Central Police University said: “The main point is not in Pelosi coming to Taiwan, but it’s to look at how the U.S. and China effectively control the risks that may arise.” (“For Taiwan, Pelosi visit is about U.S., China controlling risk,” The Asahi Shimbun, 30 July 2022)

ECONOMY
Banking and Insurance Regulatory Commission: Continuous regulation has greatly reduced the assets and hazards of China's "shadow" banking sector
On 30 July, Vice-chairman of the China Banking and Insurance Regulatory Commission Liang Tao stated that continuous regulation has greatly reduced the holdings and dangers of China's "shadow" banking sector. He added that as of the end of June, the sector has decreased from its peak by more than 29 trillion yuan. Liang issued warnings about significant underlying dangers as certain goods have intricate structures and significant levels of leverage. According to him, People should be on the lookout for hazards associated with a resurgence of shadow banking, as some organisations may exploit questionable financial advances to develop fresh iterations of the practise. (“Shadow-banking risks in China curbed significantly, regulator says,” The Strait Times, 30 July 2022)