Archive for ‘Bangkok’

13/10/2019

Xi, Modi agree to trim trade deficit, boost mutual trust amid US-China tensions

  • The leaders agreed to set up a mechanism to boost economic ties and tackle India’s trade deficit with China after their second informal summit
  • As 2020 is the 70th anniversary of diplomatic ties between both countries, India and China will hold 70 events next year to promote relations
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping during their meeting in Mamallapuram, Chennai. Photo: EPA
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping during their meeting in Mamallapuram, Chennai. Photo: EPA
Chinese President Xi Jinping and Indian Prime Minster Narendra Modi concluded their second informal summit on Saturday by pledging to overcome trade differences and appreciate “each other’s autonomous foreign policies”, signalling an effort to focus on mutual interests rather than on long-standing contentious issues.
Modi remarked that both sides had agreed to be “sensitive” to each other’s concerns and not let differences escalate into disputes, while Xi called for communication to “alleviate suspicions” and for India and China to enhance strategic mutual trust, according to state news broadcaster CCTV.
Their desire to look beyond irritants in diplomatic ties, including a decades-long border row and China’s close military ties with India’s arch rival, Pakistan, comes as Beijing is embroiled in a tariff war with Washington that has rocked the global economy.
In a sign of China’s willingness to address India’s trade deficit with it, the leaders agreed to launch a “High Level Economic and Trade Dialogue”.
As Xi meets Modi, Chinese in Chennai hope to witness the ‘Wuhan spirit’
Chinese Vice-Premier Hu Chunhua and Indian Finance Minister Nirmala Sitharaman will meet regularly to discuss ways to boost two-way trade and investments, Indian foreign secretary Vijay Gokhale said in a media briefing.
India has a US$53 billion trade deficit with China, which makes up almost a third of its total trade deficit. It is also facing pressure to decide if it will commit to the China-led

Regional Comprehensive Economic Partnership

(RCEP), which aims to create the world’s largest trading bloc involving 16 countries before the end of the year.

Narendra Modi exchanges gifts with Xi Jinping. Photo: AFP
Narendra Modi exchanges gifts with Xi Jinping. Photo: AFP

Negotiations are ongoing with talks taking place in Bangkok this week, but India’s domestic producers have opposed the agreement over fears of a flood of Chinese imports. On Friday, the Indian government rejected clauses in the agreement related to e-commerce, according to reports.

Gokhale told the media briefing that both leaders, who met in the coastal town of Mamallapuram about 50km away from Chennai, briefly discussed the RCEP.

“PM Modi said India was looking forward to the RCEP but it is important that RCEP is balanced, that a balance is maintained in trade in goods, trade in services and investments,” he said, adding that Xi agreed to further discussions of India’s concerns on the issue.

Narendra Modi with Xi Jinping in Mamallapuram. Photo: EPA
Narendra Modi with Xi Jinping in Mamallapuram. Photo: EPA

CCTV said Xi had six suggestions for how China and India could further improve ties, including assessing each other correctly and stepping up cooperation between their militaries. Besides economic and trade dialogue, China welcomed Indian pharmaceutical and IT companies to invest there, he said.

“We should look at disputes with a correct mind, and not let disputes affect cooperation.

“Both sides should properly and fairly get a solution for border disputes that are acceptable to each other … [and] cautiously handle each other’s core interests, and take proper measures to control issues that cannot be resolved immediately,” the president reportedly said.

Gokhale told reporters that both countries had agreed to pursue, through special representatives, an ongoing dialogue on their disputed border. China and India have held more than 20 rounds of talks to resolve their boundary dispute, over which they went to war in 1962. Different mechanisms have been set up to maintain peace along the 4,000-kilometre (2,485-mile) so-called Line of Actual Control.

Xi and Modi bank on chemistry as they talk trade and terrorism

Gokhale confirmed that the leaders – who met for a total of seven hours over Friday and Saturday, with the bulk of their time spent in one-on-one talks – did not discuss 

Kashmir

, a region that is currently divided between India and Pakistan but which both nuclear-armed rivals claim in full.

Since India revoked the autonomy of the area it controls in August and imposed a lockdown,

Pakistan

has lobbied its allies – including its all-weather friend China – to support its opposition to the move. New Delhi had reacted sharply to Beijing’s move to take the matter to the United Nations, insisting that it was a purely bilateral issue. Two days before the summit, Xi had hosted Pakistan Prime Minister Imran Khan and had assured him of China’s support on all core issues, a statement that had irked India.

Gokhale said both leaders “emphasised the importance of having independent and autonomous foreign policies”.
“President Xi said that the two countries needed to have more extensive dialogue in order to understand each other’s perspectives on major global and regional issues,” he added.
Narendra Modi exchanges gifts with Xi Jinping. Photo: AFP
Narendra Modi exchanges gifts with Xi Jinping. Photo: AFP

The leaders also discussed terrorism, with a statement issued later by New Delhi saying both sides would make efforts to ensure the international community strengthened its framework “against training, financing and supporting terrorist groups throughout the world and on a non-discriminatory basis”.

The China-led multilateral Financial Action Task Force, which has been investigating Pakistan’s efforts to stamp out the financing of terrorism, is expected to decide soon if it would add Islamabad to its blacklist along with Iran and North Korea, a move that could invite stringent economic sanctions and drive away international financial institutions, both of which could affect Pakistan’s already-indebted economy adversely.

Gokhale added that as 2020 is the 70th anniversary of diplomatic ties between both countries, India and China will hold 70 events next year to promote people-to-people ties, with Modi accepting an invitation by Xi for the next informal summit to be held in China.

Both leaders had struck positive notes on the summit – with Xi describing their discussions as “candid” and between friends and Modi hailing the “Chennai Connect” meeting as marking a new era of cooperation between both countries.

War games, Kashmir and a US$57b question: the issues as Xi meets Modi

But analysts said they would be looking to see how the newly-announced high-level mechanism on trade panned out.

Narayani Basu, a New Delhi-based author, foreign policy analyst and China watcher felt the summit had achieved its purpose of bagging small wins for both sides.

“Discussing contentious issues would have defeated the purpose of the summit. The idea behind such a summit must be that despite the overarching posturing on different divergent issues, the two countries can achieve the easily-achievable wins. That is what the summit seems to have tried doing.”

But in terms of actual outcomes, she said she remained sceptical.

“I don’t think there has been much progress in the ties between the two countries since the last summit in Wuhan. Hence, this time, there is a lot more caution and scepticism towards such a summit,” she said, referring to the first summit last year in the Chinese city of Wuhan.

During Xi’s visit to southern India, which lasted 24 hours in all, Modi took him on a personal tour of temple monuments dating back to the seventh and eighth century in Mamallapuram when regional leaders had trade ties with Chinese provinces. He was also shown local artisan handicrafts and art forms, and gifted a handwoven silk portrait, a lamp and a painting.

Xi gave Modi a porcelain plate with the image of the prime minister’s face printed on it.

Xi Jinping with Narendra Modi in Mamallapuram. Photo: Reuters
Xi Jinping with Narendra Modi in Mamallapuram. Photo: Reuters

On Friday, New Delhi announced that visa rules for Chinese nationals visiting India would be relaxed, with multiple-entry visas with a validity period of five years available from this month onwards. At present, most visas are single-entry and usually for between 30 and 60 days. Visa fees would also be reduced, the government said, with the multiple-entry visa costing US$80.

This was aimed at further enhancing “people-to-people exchanges between the two countries and [encouraging] more Chinese tourists to choose India as a destination for tourism purposes,” it said in a statement.

Xi left Chennai on Saturday afternoon and arrived in Nepal, which lies in between India and China. He will be the first Chinese president to visit Nepal in 22 years and is expected to sign a slew of deals with Nepal’s Prime Minister K.P. Sharma Oli, including the planned extension of the rail link from remote, mountainous Tibet to Nepal’s capital, Kathmandu.

The link will be part of Beijing’s ambitious infrastructure project to boost trade, the 

Belt and Road Initiative

(BRI), that Nepal joined two years ago.

More than 120 countries have signed on to the BRI, including Pakistan, where a series of projects worth US$46 billion are being constructed under the China-Pakistan Economic Corridor (CPEC). India has snubbed the BRI and questioned the transparency of funding agreements.
Source: SCMP
30/09/2019

Next stop: Croatia. Chinese travellers skip Hong Kong for niche destinations over National Day break

  • Train trips, Xinjiang and chartered flights among the growing holiday trends, travel agents say
Destinations such as Dubrovnik, Croatia, are becoming more popular among mainland Chinese tourists, according to one of China’ s biggest travel services. Photo: AFP
Destinations such as Dubrovnik, Croatia, are becoming more popular among mainland Chinese tourists, according to one of China’ s biggest travel services. Photo: AFP

Chartered flights and niche destinations such as Croatia and Malta are growing in popularity as Hong Kong falls out of favour for mainland Chinese holidaymakers over the National Day “golden week” break.

Japan has overtaken Thailand as the most searched overseas destination on the website of travel agency Ctrip, followed by Malaysia, the United States, Singapore, Australia, Macau, France, Italy and Russia.

Within the mainland places such as Beijing and Shanghai continued to be among the most popular searches but Urumqi, capital of Xinjiang Uygur autonomous region, is a fast-growing term, especially among people in Shanghai and Guangzhou.

“It could be that tourists want to see autumn leaves,” a Ctrip spokesman told the South China Morning Post.

October 1 marks the start of a week-long break on the mainland when millions of Chinese take the chance to travel. This year, an estimated 800 million people are expected to go on trips in China or overseas, about 10 per cent more than last year.
The country’s motorways are expected to be jammed from about 2pm on Monday, reaching a peak at around midnight, and again from 10am Tuesday, according to web mapping service Tencent Map.
China’s highways can expect heavy traffic as travellers head out for the holiday. Photo: Reuters
China’s highways can expect heavy traffic as travellers head out for the holiday. Photo: Reuters

Ctrip said people heading overseas were increasingly seeking out new destinations, with bookings to places such as the Czech Republic, Austria, Croatia, Malta and Cambodia growing by 45 per cent this year.

“As Chinese people travel outside the country more and their experience of travel grows, many are more willing to go to smaller eastern European countries, such as the Czech Republic,” the spokesman said.

“Popular movies also have a strong influence. Many young people are willing to travel to see where films are shot, such as Croatia, one of the locations for Game of Thrones.”

Other noticeable trends this year include more people travelling with pets, by train and on chartered flights. The site said it sold 60 per cent more European train tickets and 10 times the number of train tickets for Japan for this golden week compared to last year.

The most popular routes in Asia were Tokyo to Kyoto in Japan, and Seoul to Busan in South Korea.

Hong Kong protests leave ‘golden week’ tourist boom in tatters as visitor arrivals during Chinese holiday period are set to be slashed by a third

Thousands of users also chose chartered flights, a service Ctrip introduced in September.

Ji Yu, head of chartered flights for Ctrip said most people thought chartered flights or helicopters were something only millionaires could afford, but in the internet age, they had become cheaper and more accessible.

“In the internet era, consumer needs vary from person to person, especially in terms of travel. There are products on the market to satisfy each customer’s personal needs.”

Among the more popular chartered routes were from Beijing or Shanghai to Tokyo, Bangkok, the Maldives and London.

More people are also going away for longer. Digital travel services giant Qunar said that 80 per cent of the travellers booking flights or hotels through its services were heading off for more than five days. And of those 41 per cent were travelling for more than a week.

Meanwhile, trips to Hong Kong have fallen substantially, with just 15 group tours expected to enter the city each day, down from 110 last year, according to the Travel Industry Council of Hong Kong.

Efforts to promote Hong Kong attractions have also increased in Shenzhen in recent weeks, with advertising videos scenic spots, popular restaurants and malls in Hong Kong playing on cross-border buses. Passengers can also get discounts to some stores and services with their tickets.

Source: SCMP

15/09/2019

China Focus: Shanghai tourism festival witnesses consumption upgrade

SHANGHAI, Sept. 14 (Xinhua) — As the 2019 Shanghai Tourism Festival opened Saturday evening, the festival, which began in 1990, has been a witness to China’s development and citizens’ consumption upgrade over the past few decades.

Twenty-five floats, which represent China’s well-known tourist destinations such as Nanjing and Suzhou cities in Jiangsu Province, and 32 performance groups from 19 countries and regions, including Germany, Switzerland and France, participated in the dance and music show in downtown Shanghai, attracting some 300,000 spectators.

The festival, which will last until Oct. 6, will feature 100 activities including some for overseas travelers. A folk culture exhibition on Belt and Road countries will also be held. Dozens of tourist sites, museums and galleries in Shanghai will offer half-price admissions during the event.

The first tourism festival in Shanghai attracted half a million tourists from home and abroad. The 2018 festival attracted 12.7 million visitors. As people’s living standards have improved remarkably, tourism is not a luxury any more, but a necessity for many citizens.

“In 1995, the company rewarded me with a trip to Hainan. I was so proud and cherished it very much,” recalled a Shanghai taxi driver surnamed Guo, 54. “Now, our income has increased a lot, travel becomes a routine for most people who are willing to pay their own money to relax.”

Thirty years ago, ideal tourism resources were lacking, said Lu Guojun, a clerk with Shanghai Huangpu River Cruise Group Co., Ltd, citing the swaths of croplands along the eastern coast of the river which flows through the city center.

In recent years, with improved infrastructure and rapid development of service economy, more companies have joined the development of the river tourism, Lu said.

Dai Bin, president of the China Tourism Academy in Beijing, said people’s aspirations for a better life lead to their high expectations of tourism quality.

In August, China issued a guideline to unleash the cultural and tourism consumption potential, urging efforts to deepen supply-side reform in cultural and tourism industries.

On Friday, Shanghai signed agreements with six cities and regions including Budapest, Phnom Penh and Bangkok to boost culture and tourism exchange.

Culture and tourism promote mutual friendship and understanding, said Yu Xiufen, head of the Shanghai Municipal Administration of Culture and Tourism.

In 2018, domestic tourists made 5.54 billion trips, up 10.8 percent year on year, and the total number of inbound and outbound tourists reached 291 million, up 7.8 percent. The total tourism revenue reached 5.97 trillion yuan (842.7 billion U.S. dollars) last year, up 10.5 percent, data of the Ministry of Culture and Tourism showed.

Source: Xinhua

31/07/2019

China claims progress towards world’s biggest trade deal, but India remains biggest roadblock to RCEP

  • China suggests good progress made in Regional Comprehensive Economic Partnership talks after marathon 10-day negotiations in Zhengzhou
  • Indian Commerce Minister Piyush Goyal has opted to skip the upcoming high-level meetings, adding fuel to rumours that the country could be removed
The Association of Southeast Asian Nations (Asean) has overtaken the US to become China’s second-largest trading partner in the first half of 2019. Photo: AP
The Association of Southeast Asian Nations (Asean) has overtaken the US to become China’s second-largest trading partner in the first half of 2019. Photo: AP
China has claimed “positive progress” towards finalising the world’s largest free-trade agreement by the end of 2019 after hosting 10 days of talks, but insiders have suggested there was “never a chance” of concluding the deal in Zhengzhou.
The 27th round of the Regional Comprehensive Economic Partnership (RCEP) negotiations closed on Wednesday in the central Chinese city. 
The 10-day

working level conference brought over 700 negotiators from all 16 member countries to Henan province, with China keen to push through a deal which has proven extremely difficult to close.

If finalised, the agreement, which involves the 10 Asean nations, as well as China, Japan, South Korea, Australia, New Zealand, and India, would cover around one-third of the global gross domestic product, about 40 per cent of world trade and almost half the world’s population.
“This round of talks has made positive progress in various fields,” said assistant minister of commerce Li Chenggang, adding that all parties had reaffirmed the goal of concluding the deal this year. “China will work together with the RCEP countries to proactively push forward the negotiation, strive to resolve the remaining issues as soon as possible, and to end the negotiations as soon as possible.”
China's Foreign Minister Wang Yi (fifth left) poses with foreign ministers from the Association of Southeast Asian Nations (Asean) countries during the ASEAN-China Ministerial Meeting in Bangkok. Photo: AFP
China’s Foreign Minister Wang Yi (fifth left) poses with foreign ministers from the Association of Southeast Asian Nations (Asean) countries during the ASEAN-China Ministerial Meeting in Bangkok. Photo: AFP

China is keen to complete a deal which would offer it a buffer against the United States in Asia, and which would allow it to champion its free trade position, while the US pursues protectionist trade policy.

The RCEP talks took place as Chinese and American trade negotiators resumed face-to-face discussions in Shanghai, which also ended on Wednesday, although there was little sign of similar progress.

As the rivalry between Beijing and Washington has intensified and bilateral trade waned, the Association of Southeast Asian Nations (Asean) overtook the US to become China’s second-largest trading partner in the first half of 2019. From January to June, the trade volume between China and the 10-member bloc reached US$291.85 billion, up by 4.2 per cent from a year ago, according to government data.

The Asean bloc is made up of Indonesia, Thailand, Malaysia, Singapore, Philippines, Vietnam, Myanmar, Cambodia, Brunei and Laos.

China will work together with the RCEP countries to proactively push forward the negotiation, strive to resolve the remaining issues as soon as possible, and to end the negotiations as soon as possible. Li Chenggang

RCEP talks will now move to a higher level ministerial meeting in Beijing on Friday and Saturday, but trade experts have warned that if material progress is not made, it is likely that the RCEP talks will continue into 2020, prolonging a saga which has already dragged on longer than many expected. It is the first time China has hosted the ministerial level talks.
But complicating matters is the fact that India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks, with an Indian government official saying that he has to participate in an extended parliamentary session.
India is widely viewed as the biggest roadblock to concluding RCEP, the first negotiations for which were held in May 2013 in Brunei. Delhi has allegedly opposed opening its domestic markets to tariff-free goods and services, particularly from China, and has also had issues with the rules of origin chapter of RCEP.
China is understood to be “egging on” other members to move forward without India, but this could be politically explosive, particularly for smaller Asean nations, a source familiar with talks said.
Deborah Elms, executive director of the Asian Trade Centre, a Singapore-based lobby group, said that after the last round of negotiations in Melbourne between June 22 to July 3 – which she attended – there was “frustration” at India’s reluctance to move forward.
She suggested that in India’s absence, ministers in China could decide to move forward through a “pathfinder” agreement, which would remove India, but also potentially Australia and New Zealand.
India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks this week in Beijing. Photo: Bloomberg
India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks this week in Beijing. Photo: Bloomberg

This “Asean-plus three” deal would be designed to encourage India to come on board, Elms said, but would surely not go down well in Australia and New Zealand, which have been two of the agreement’s biggest supporters.

New Zealand has had objections to the investor protections sections of RCEP, and both countries have historically been pushing for a more comprehensive deal than many members are comfortable with, since both already have free trade agreements with many of the other member nations.

However, their exclusion would be due to “an unfortunate geographical problem, which is if you’re going to kick out India, there has always been an Asean-plus three concept to start with”. Therefore it is easier to exclude Australia and New Zealand, rather than India alone, which would politically difficult.

A source close to the negotiating teams described the prospect of being cut out of the deal at this late stage as a “frustrating rumour”, adding that “as far as I know [it] has no real basis other than a scare tactic against India”.

There was “never a chance of concluding [the deal during] this round, but good progress is being made is what I understand. The key issues remain India and China”, said the source, who wished to remain anonymous.

Replacing bilateral cooperation with regional collaborations is a means of resolving the disputesTong Jiadong

However, Tong Jiadong, a professor of international trade at the Nankai University of Tianjin, said Washington’s refusal to recognise India as a developing country at the World Trade Organisation could nudge the world’s second most populous nation closer to signing RCEP.

“That might push India to the RCEP, accelerating the pace of RCEP,” Tong said, adding that ongoing trade tensions between Japan and South Korea could also be soothed by RCEP’s passage.

“Replacing bilateral cooperation with regional collaborations is a means of resolving the disputes between the two countries,” Tong said.

Although the plan was first proposed by the Southeast Asian countries, China has been playing an increasingly active role, first as a response to the now defunct US-backed Trans-Pacific Partnership (TPP), and more recently as a means of containing the impact of the trade war.

China’s vice-commerce Minister, Wang Shouwen, told delegates last week that RCEP was “the most important free trade deal in East Asia”. He called on all participants to “take full advantage of the good momentum and accelerating progress at the moment” to conclude a deal by the end of the year.

Source: SCMP

31/07/2019

China and US court Asean members to strengthen Indo-Pacific ties as trade war enters second year

  • China’s Wang Yi and US’ Mike Pompeo at summit in Thailand to sell their visions of future for Southeast Asia
  • Analysts expect pragmatism from Asean as world’s two biggest economic powers play diplomatic game
Chinese Foreign Minister Wang Yi (right) greets his Philippine counterpart Teodoro Locsin at the Asean meeting in Bangkok, Thailand. Photo: Xinhua
Chinese Foreign Minister Wang Yi (right) greets his Philippine counterpart Teodoro Locsin at the Asean meeting in Bangkok, Thailand. Photo: Xinhua
China and the United States are on a mission to strengthen ties with allies and expand their influence in Southeast Asia this week as their trade war enters a second year.
US Secretary of State Mike Pompeo arrived for a meeting of the Association of Southeast Asian Nations (Asean) in Bangkok on Wednesday to promote the US-led Indo-Pacific strategy, while Chinese Foreign Minister Wang Yi touched down a day earlier to advance Beijing’s Belt and Road Initiative.
The US Department of State said Pompeo’s trip was aimed at deepening Washington’s “long-standing alliances and vibrant bilateral relations with these countries, and [to] reaffirm our commitment to Asean, which is central to our vision for the Indo-Pacific region”.
In Beijing on Wednesday, Chinese foreign ministry spokeswoman Hua Chunying said that while their meeting was yet to be set, Wang and Pompeo were expected to meet and talk “frankly” about bilateral relations.
“I think that it is indeed necessary for China and the United States to maintain communication, as the two countries face many situations,” Hua said. “The issues would be communicated frankly”.

The Indo-Pacific strategy is a military and economic framework to contain China’s expansion into the Pacific and Indian oceans, and give an alternative to Beijing’s flagship belt and road development programme.

En route to Thailand, Pompeo said that after a stalled start to US Indo-Pacific policy during the Barack Obama administration, Washington’s strategy was well on its way to bearing fruit for the US and its allies.

South China Sea tensions, US-China trade war loom over Asean summit

“We have watched these coalitions build out,” he said.

Pompeo dismissed claims that China’s sphere of influence among Asean members was growing, saying such speculation was “not factually accurate”.

“[Asean countries] are looking for partners that are going to help them build out their economies and to take good care of their people,” he said, pledging greater engagement from President Donald Trump’s administration.

Pompeo was expected to sit down on Friday with his South Korean and Japanese counterparts to consolidate their trilateral alliance in the region.

He was also expected to hold talks with Thai Foreign Minister Don Pramudwinai that day.

US Secretary of State Mike Pompeo is expected to meet Chinese Foreign Minister Wang Yi at Asean in Thailand. Photo: EPA-EFE
US Secretary of State Mike Pompeo is expected to meet Chinese Foreign Minister Wang Yi at Asean in Thailand. Photo: EPA-EFE

Meanwhile, Wang launched his belt and road pitch to his Cambodian, Philippine and Indonesian counterparts after he arrived in Thailand for the gathering, which ends on Saturday.

The belt and road projects are largely commercial and aimed at strengthening land and sea infrastructure linking Asia, Europe and Africa. But they raised suspicion in the West that they are aimed at eroding the US-led world order.

During his meeting with Philippine Foreign Affairs Secretary Teodoro Locsin, Wang said: “China is willing to have high-level exchanges with the Philippines, to deepen the mutual trust, and promote the Belt and Road Initiative [in the Philippines] … to accelerate the development of regional infrastructure.”

Can China’s trade boost with Asean help get the Regional Comprehensive Economic Partnership over the line?

This year’s Asean forum was taking place as countries were more receptive to Chinese initiatives, in part due to the unpredictability of the US administration, according to Rajeev Ranjan Charturvedy, a visiting fellow at the S. Rajaratnam School of International Studies at Nanyang Technological University in Singapore.

“Policy uncertainties under the Trump administration have already pushed some Asean countries towards China in ways that would have seemed unlikely a few years ago,” Charturvedy said.

Analysts said Trump’s “America first” approach shaped his Asean policy. The president had vowed to apply “punishments” to countries – including Asean member states – for contributing to the US trade deficit.

Chinese Foreign Minister Wang Yi is talking to Asean counterparts at a time when they are receptive to China’s proposals, an analyst says. Photo: AFP
Chinese Foreign Minister Wang Yi is talking to Asean counterparts at a time when they are receptive to China’s proposals, an analyst says. Photo: AFP

Trump was absent at the Asean summit in Singapore last year, leading to concerns that Washington’s commitment to Asia was declining.

Charturvedy said the Asean forum’s focus was about building constructive regionalism, but China’s attitudes to security could pose a challenge.

“[However] Asean countries clearly hope not to be forced to choose between the US and Chinese offers. Rather, they would like more freedom of choice while accommodating for a larger role for China in the region,” he said.

Clarita Carlos, a professor of political science at the University of the Philippines, suggested that Asean members would be pragmatic during the forum.

Robert Lighthizer warns Vietnam over trade deficit with US

They would try to find their own balance between the two major powers – as countries rather than a bloc – to try to maximise each state’s interests and advantages, Carlos said.

“Vietnam has a love-hate relationship with China, especially as a winner in the ongoing US-China trade war,” she said. “Singapore has close relations with China. There are also ups and downs in the relationship with China for Brunei, Malaysia and Indonesia.”

Source: SCMP

23/06/2019

Southeast Asian leaders emphasise economic strength in face of U.S.-China tensions

BANGKOK (Reuters) – Southeast Asian leaders agreed on Sunday to work together on regional economy and security to strengthen their positions amid growing U.S.-China tensions, as they wrapped up this year’s first summit in Bangkok.

The 10-member Association of Southeast Asian Nations (ASEAN) will need its collective economic strength for bargaining power globally, especially amid the trade tensions between the world’s top two economies, Thai Prime Minister Prayuth Chan-ocha told a news conference, as chairman of the 34th ASEAN Summit.
Prayuth urged ASEAN nations to complete negotiations this year for the China-initiated Regional Comprehensive Economic Partnership (RCEP) pact that includes 16 countries.
“This will help ASEAN handle the changes and uncertainty that will happen in the region going forward, particularly the impacts of trade tension between ASEAN’s important trade partners.”
Negotiations began in 2012 on RCEP, which envisions the creation of a free trade zone encompassing 45% of the world’s population and more than a third of its GDP, but does not involve the United States.
First proposed by China, RCEP’s 16 signatories include the 10 ASEAN member states and six Asia-Pacific countries, including major economies China, India, Japan and South Korea. ASEAN has existing free-trade agreements with all six countries.
“If we can do this, we will have the bargaining power and base for negotiation. Because when combined, we are 650 million people, the largest regional bloc in the world,” the Thai prime minister said.
Four ASEAN countries – Thailand, Indonesia, Singapore and Vietnam – will discuss the trade war in next week’s G20 summit, which assembles 20 major economies, in Tokyo, Prayuth said.
ASEAN countries also agreed on a common approach on a U.S.-led Indo-Pacific initiative, at a time when U.S.-China tensions were rising and forcing ASEAN countries to take sides.
Prayuth hailed the bloc’s agreement on the ASEAN Outlook on the Indo-Pacific as a “significant step” for the region.
The endorsed outlook document, seen by Reuters, acknowledges “maritime issues such as unresolved maritime disputes that have the potential for open conflict” as existing and emerging geopolitical challenges.
It outlines maritime cooperation “for peaceful settlement of disputes”. It also aims for connectivity in the Indo-Pacific region.
Source: Reuters
22/06/2019

Southeast Asian leaders open summit in Bangkok

BANGKOK (Reuters) – Southeast Asian leaders opened a two-day summit in Bangkok on Saturday, though it was unclear what progress their 10-country group could make on disputes in the South China Sea and the plight of ethnic Rohingya fleeing Myanmar.

Formed more than half a century ago, the Association of Southeast Asian Nations (ASEAN) has historically struggled with challenges facing the region because it works only by consensus and is reluctant to become involved in any matter regarded as internal to a member state.

Thai Prime Minister Prayuth Chan-ocha was making his debut as a civilian leader representing current chair Thailand, after a general election in March that opposition parties say was designed to ensure his victory five years after the former army chief seized power in a 2014 coup.

Officials are expected to discuss a Code of Conduct (COC) for negotiations over the South China Sea, one of the world’s busiest waterways and a potential flashpoint, as it is claimed by several ASEAN members as well as China.

However, it was unlikely much progress would be made, though member nations might discuss the June 9 collision of a Philippine boat and a Chinese fishing vessel.

“It is encouraging to see that the ASEAN-China talks on the COC have continued,” said Marty Natalegawa, former foreign minister of Indonesia.

“However, there is real risk that developments on the ground – or more precisely at sea – are far outpacing the COC’s progress thereby possibly rendering it irrelevant.”

Philippine President Rodrigo Duterte has accepted China’s proposal to jointly investigate allegations that a Chinese fishing vessel abandoned 22 Filipinos after it sank their boat in the South China Sea, his spokesman said on Saturday.

Rights groups have also called on ASEAN leaders to rethink support for plans to repatriate Rohingya Muslims who have fled member state Myanmar, where activists say returnees could face discrimination and persecution.

More than 700,000 Rohingya crossed into Bangladesh in 2017, according to U.N. agencies, after a crackdown by Myanmar’s military sparked by Rohingya insurgent attacks on the security forces.

However, it is unlikely that there will be any criticism of Myanmar at the summit over the Rohingya, said Prapat Thepchatree, a political science professor at Thailand’s Thammasat University said.

“This issue has been a very sensitive one for ASEAN,” he said.

Host country Thailand deployed about 10,000 security forces around Bangkok for the summit, mindful of a decade ago when Thailand last hosted an ASEAN summit and dozens of protesters loyal to military-ousted former premier Thaksin Shinawatra forced their way into the meeting venue.

But on Saturday morning, only a small group of people had planned to stage a protest to call Prayuth’s election the product of a rigged system.

The group, called Citizens Wanting Elections, was stopped by police before it could reach a meeting point near the summit venue. The group later released a statement welcoming visiting leaders but criticising Prayuth.

“The individual who serves as President of ASEAN, who welcomes everyone today, did not come from a clean and fair election,” the letter said.

Source: Reuters

10/03/2019

China’s wealthy families are turning to long holidays abroad as their efforts emigrate overseas are halted

  • Foreign lifestyle experiences are becoming more popular as citizens seek to escape pollution, food and medicine safety worries and authoritarian government controls
  • Citizens encountering more barriers to their dreams of travelling abroad, with severe limits on moving money overseas and restrictions on visiting foreign countries
Thailand, including the likes of Chiang Mai, the United States, Australia, Canada, New Zealand are popular destinations for Chinese families. Photo: Shutteratock
Thailand, including the likes of Chiang Mai, the United States, Australia, Canada, New Zealand are popular destinations for Chinese families. Photo: Shutteratock

Xu Zhangle and her husband and their two children are a typical middle-class couple from Shenzhen, and along with 60 other Chinese families, they are going on an extended holiday to Thailand in July, where they hope to enjoy an immigrant-like life experience.

The family have paid a travel agent around 50,000 yuan (US$7,473) for the stay in Chiang Mai in the mountainous north of the country, including transport, a three-week summer camp for their daughters at a local international school, rent for a serviced apartment and daily expenses.

Zhangle loves Chiang Mai’s relaxed lifestyle and easy atmosphere and wants to live as a local for a month or even longer, instead of having to rush through a short-term holiday.

“It would not be just [tourist] travelling but rather a life away from the mainland.” she said.

Recently, upper middle-class citizens have increased their efforts to safeguard their wealth and achieve more freedom by spending more time abroad.

They have invested considerable amounts of money in overseas properties and applied for long-stay visas, although many of their attempts have ended in failure.

Chinese citizens are encountering more barriers to their dreams of travelling abroad, with severe limits on moving money overseas and restrictions on visiting foreign countries.

Still, growing anxieties about air pollution, food and medicine safety and an increasingly authoritarian political climate are pushing middle class families to look for new ways to circumvent the obstacles so they can live outside China.

Among the options, there is growing demand for sojourns abroad of a month or more, to enjoy a foreign lifestyle for a brief period to make up for the fact that their emigration dreams may have stalled.

“I think this is becoming a trend. Chinese middle-class families are facing increasing difficulties to emigrate and own homes overseas. On the other hand, they still yearn for more freedom, for a better quality of life than what is found in first-tier cities in China.

They are eager to seek alternatives to give themselves and their children a global lifestyle,” said Cai Mingdong, founder of Zhejiang Newway, an online tour and education operator in Ningbo, south of Shanghai.

“First, the availability of multiple-entry tourist visas and the sharp drop in air ticket prices have made it convenient and practical to stay abroad for from a few weeks to up to three months each year.”

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Now, many well-to-do Chinese middle class families can get a tourist visa for five or even 10 years that allows them to stay in a number of countries — including the United States, Australia, Canada, New Zealand and other Asian countries — for up to six months at a time.

“In 2011, a round-trip air ticket from Shanghai to New Zealand cost 14,000 yuan (US$2,000), but now is about 4,000 (US$598),” added Cai.

This opens up the possibility for many middle-class families who are not eligible to emigrate, to live abroad for short periods of time.

Many wealthy Chinese middle class families can get a tourist visa for five or even 10 years that allows them to stay in several countries including the United States, Australia, Canada, New Zealand and other Asian countries, for up to six months at a time. Photo: AP
Many wealthy Chinese middle class families can get a tourist visa for five or even 10 years that allows them to stay in several countries including the United States, Australia, Canada, New Zealand and other Asian countries, for up to six months at a time. Photo: AP

Chinese tourists made more than 140 million trips outside the country in 2018, a 13.5 per cent increase from the previous year, spending an estimated US$120 billion, according to the China Tourism Academy, an official research institute under the Ministry of Culture and Tourism.

“In [the Thai cities of] Bangkok and Chiang Mai, there are more and more Chinese who stay there to experience the local lifestyle, which is different from theirs in China. The life there is very different from that in China,” said Owen Zhu, who now lives in the Bangkok condo he bought last year.

“The freedom, culture and community are diversified. The quality of air, food and services are much higher than in first-tier cities in China, but the prices are more affordable.

“In Bangkok, in many international apartment complexes where foreigners live, the monthly rent for a one-bedroom [apartment] is about 2,000 (US$298) to 3,000 yuan.”

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A one-bedroom apartment in Shenzhen in southern China is twice as expensive, with rents continuing to rise rapidly.

There are global goods, and it is easy to socialise with different people from around the world,” Zhu added

“Many Chinese people around me, really, come to Thailand to live for a while and go back to China, but then come back again after a few months.”

Both Cai and Zhu said they discovered the new phenomenon among China’s middle class and decided it was a business opportunity.

Growing anxieties about air pollution, food and medicine safety and an increasingly authoritarian political climate are pushing middle class families to look for new ways to circumvent the obstacles so they can live outside China. Photo: AP
Growing anxieties about air pollution, food and medicine safety and an increasingly authoritarian political climate are pushing middle class families to look for new ways to circumvent the obstacles so they can live outside China. Photo: AP

Zhu is in the process of registering a company in Bangkok and plans to build an online platform to service the needs of Chinese citizens living abroad who do not own property or have immigration status, especially members of the LGBT community.

Cai said dozens of Chinese families in the Yangtze River Delta had paid him to send their children to schools in New Zealand or Europe for around three or four weeks in the middle of the school year, while the parents rent villas in the area, with New Zealand and Toronto in Canada among the most popular destinations.

Last year, Zheng Feng, a single mother and freelance writer from Beijing, rented a small villa in Australia for a month for them, a friend and their children to escape Beijing’s pollution and experience life overseas.

“To be honest, I don’t have enough money to invest in a property or a green card in Australia. But it’s very affordable for me and my son to pay about 30,000 yuan (US$4,484) to live abroad for one or two months.” Zheng said.

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Zheng will join the Xu family in Chiang Mai later this year and she is also planning a similar trip to England next year.

Zheng’s friend, Alice Yu, invested in an American EB-5 investor visa a few years ago, and plans to make one or two month-long trips abroad each year until her family is finally able to move to the United States.

Demand for the EB-5 investor visa in China seems to be waning given heightened uncertainty about the future of the programme and US immigration law in general under US President Donald Trump.

Approval for the visa can now take up to 10 years, resulting in a huge backlog that has further dampened interest and led to a significant dip in investment inflows into the US from foreign individuals.

A one-bedroom apartment in Bangkok can cost around bout 2,000 (US$298) to 3,000 yuan a month. Photo: AFP
A one-bedroom apartment in Bangkok can cost around bout 2,000 (US$298) to 3,000 yuan a month. Photo: AFP

“Maybe it will soon become standard for a real Chinese middle-class family to have the time and money to enjoy a long stay at a countryside villa overseas,” said Yu.

“Regardless of whether we can get a long-term visa for the United States, I want my children grow up in a global lifestyle and with more freedom than just growing up on the mainland. So do all wealthy and middle class Chinese families, I think.”

Karen Gao’s son started studying at an international school in Chiang Mai in June, at the cost of about 70,000 yuan (US$10,462) a year, after she quit her job as a public relations manager in Shenzhen and moved to Thailand on a tourist visa.

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“A few months each year for good air, good food and no censorship and internet control, but cheaper living costs compared to Beijing, it sounds like a really good deal to go,” said Gao, who has now been offered a guardian visa to accompany her son, who has already been given a student visa.

“In Shenzhen, I wasn’t able to get him into school because I had no [local] residence permit.

“It would be the best choice for us because we feel so uncertain and worried about investing and living in the mainland.”

Last year, Gao, like thousands of other private investors mostly middle class people living in first-tier cities, suffered significant losses when their investments in hotels and inns in Dali, Yunnan province, were demolished amid the local government’s campaign to curb pollution and improve the environment around Lake Erhai.

“We were robbed by the officials without proper compensation,” Gao said.

Source: SCMP

15/02/2019

Chinese Foreign Minister Wang Yi holds talks in Thailand ahead of general election

  • Official will meet his opposite number Don Pramudwinai in Chiang Mai
  • Wang likely to discuss investment projects under Beijing’s ‘belt and road’ plan
PUBLISHED : Friday, 15 February, 2019, 7:17pm
UPDATED : Friday, 15 February, 2019, 7:17pm

9 Feb 2019

Chinese Foreign Minister Wang Yi arrived in Thailand on Friday for high-level talks likely aimed at reassuring Beijing about its investments in the Southeast Asian country ahead of a long-delayed general election, analysts said.

During his two-day trip to the northern city of Chiang Mai, Wang will meet his counterpart Don Pramudwinai, Thailand’s ministry of foreign affairs said on its website.

Zhang Mingliang, a Southeast Asian affairs specialist at Jinan University, said China was concerned the upcoming poll might have an impact on its interests.

“The recent events regarding the sudden changes to Thailand’s prime ministerial candidate could affect the country’s political stability and affect its relationship with China,” he said.

He was referring to the fact that on Wednesday, Thailand’s Election Commission asked the constitutional court to dissolve the Thai Raksa Chart, a political party allied with the powerful Shinawatra clan, for putting forward Princess Ubolratan as candidate for prime minister.

The move came just days after Thai King Maha Vajiralongkorn, Ubolratan’s younger brother, issued a royal decree denying her bid to become prime minister hours after her name was submitted.
Zhang said that only by ensuring the political stability of Thailand could China’s interests in the country and Southeast Asia as a whole be protected.

“In the past, political instability meant Thailand’s leaders were unable to attend foreign events such as meetings with Asean and China,” he said.

“If there is political stability in Thailand … that can aid its contribution to Asean and its ties with China.

“China’s relationship with Thailand is the best among the Asean nations, with the least conflict of interests,” he said.

Concerns over China’s overseas investments are growing and there have been accusations that Beijing is using them to gain political leverage.

China and Thailand reached an agreement in 2017 for the construction of Thailand’s first high-speed rail line. Once completed it will run from Bangkok to Nong Khai on the Thai border with Laos.

The line is seen as a key project under the “Belt and Road Initiative”, Beijing’s plan to connect China with countries across Asia, the Middle East and Africa.

Elections in Southeast Asia have proved troublesome for the initiative, however. Soon after being re-elected as prime minister of Malaysia last year, Mahathir Mohamad’s government cancelled the China-funded US$20 billion East Coast Rail Link. Officials later backtracked on the decision, leaving its future in the air.

Xu Liping, a specialist in Southeast Asian studies at the Chinese Academy of Social Sciences, said that Thailand, as this year’s chair of Association of Southeast Asian Nations, has a crucial role to play in promoting China’s relationship with other members of the group.

“Ensuring the continuity of China-Thailand ties after the elections in March will also be on the agenda in Wang’s meeting,” he said.

Meanwhile, China’s top diplomat Yang Jiechi, a member of the Communist Party Politburo, travelled to Germany on Friday to attend the Munich Security Conference, which runs until Sunday.

Source: SCMP

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