Archive for ‘China’

23/05/2020

China has betrayed Hong Kong, Hong Kong former governor says

LONDON (Reuters) – China has betrayed the people of Hong Kong so the West should stop kowtowing to Beijing for an illusory great pot of gold, said Chris Patten, the last governor of the former British colony.

Beijing is set to impose new national security legislation on Hong Kong after a sustained campaign of pro-democracy protests last year in the city, which enjoys many freedoms not allowed on mainland China.

“The Hong Kong people have been betrayed by China,” Patten was quoted as saying by The Times newspaper. Britain has a “moral, economic and legal” duty to stand up for Hong Kong, he said.

Patten watched as the British flag was lowered over Hong Kong when the colony was handed back to China in 1997 after more than 150 years of British rule.

Hong Kong’s autonomy was guaranteed under the “one country, two systems” agreement principle enshrined in the 1984 Sino-British Joint Declaration signed by then Chinese Premier Zhao Ziyang and British Prime Minister Margaret Thatcher.

But China’s plans to impose national security laws on Hong Kong risk destroying the Declaration, Patten said. The United States has branded the laws a “death knell” for the city’s autonomy.

“What we are seeing is a new Chinese dictatorship,” Patten said. “The British government should make it clear that what we are seeing is a complete destruction of the Joint Declaration.”

Hong Kong leader Carrie Lam said her government will “fully cooperate” with the Chinese parliament to safeguard national security, which she said would not affect rights, freedoms or judicial independence.

Patten said the West should stop chasing the illusory promise of Chinese gold.

“We should stop being fooled that somehow at the end of the all the kowtowing there’s this great pot of gold waiting for us. It’s always been an illusion,” Patten said.

“We keep on kidding ourselves that unless we do everything that China wants we will somehow miss out on great trading opportunities. It’s drivel.”

The British government did not immediately comment on Saturday.

Prime Minister Boris Johnson’s spokesman said on Friday the government was monitoring the situation and as a party to the Joint Declaration the UK was committed to the upholding Hong Kong’s autonomy and respecting the one country, two systems model.

Source: Reuters

22/05/2020

China has new US$1.4 trillion plan to seize the world’s tech crown from the US

  • The tech investment push is part of a fiscal package waiting to be signed off by the National People’s Congress, which convenes this week
  • This initiative will reduce China’s dependence on foreign technology, echoing objectives set forth previously in the ‘Made in China 2025’ programme
A conductor rehearses the military band on the sidelines of the National People's Congress in Beijing's Great Hall of the People in March of last year. China’s legislature is expected to sign off on a massive tech-led stimulus plan. Photo: AP
A conductor rehearses the military band on the sidelines of the National People’s Congress in Beijing’s Great Hall of the People in March of last year. China’s legislature is expected to sign off on a massive tech-led stimulus plan. Photo: AP

Beijing is accelerating its bid for global leadership in key technologies, planning to pump more than a trillion dollars into the economy through the roll-out of everything from next-generation wireless networks to artificial intelligence (AI).

In the master plan backed by President Xi Jinping himself, China will invest an estimated 10 trillion yuan (US$1.4 trillion) over six years to 2025, calling on urban governments and private hi-tech giants like Huawei Technologies to help lay 5G wireless networks, install cameras and sensors, and develop AI software that will underpin 

autonomous driving

to automated factories and mass surveillance.

The new infrastructure initiative is expected to drive mainly local giants, from 
Alibaba Group Holding

and Huawei to SenseTime Group at the expense of US companies.

As tech nationalism mounts, the investment drive will reduce China’s dependence on foreign technology, echoing objectives set forth previously in the “Made in China 2025”
 programme. Such initiatives have already drawn fierce criticism from the Trump administration, resulting in moves to block the rise of Chinese tech companies such as Huawei.
How will China’s annual legislative meetings affect the stock investor? Five key industries to watch
18 May 2020

“Nothing like this has happened before, this is China’s gambit to win the global tech race,” said Digital China Holdings chief operating officer Maria Kwok, as she sat in a Hong Kong office surrounded by facial recognition cameras and sensors. “Starting this year, we are really beginning to see the money flow through.”

The tech investment push is part of a fiscal package waiting to be signed off by China’s legislature, the National People’s Congress, which convenes this week. The government is expected to announce infrastructure funding of as much as US$563 billion this year, against the backdrop of the country’s worst economic performance since the Mao era.
The nation’s biggest purveyors of cloud computing and data analysis Alibaba, the parent company of the South China Morning Post, and Tencent Holding  will be linchpins of the upcoming endeavour. China has already entrusted Huawei, the world’s largest telecommunications equipment supplier, to help galvanise 5G. Tech leaders including Pony Ma Huateng and Jack Ma are espousing the programme.

Maria Kwok’s company is a government-backed information technology systems integration provider, among many that are jumping at the chance. In the southern city of Guangzhou, Digital China is bringing half a million units of project housing online, including a complex three quarters the size of Central Park in New York City. To find a home, a user just has to log on to an app, scan their face and verify their identity. Leases can be signed digitally via smartphone and the renting authority is automatically flagged if a tenant’s payment is late.

China is no stranger to far-reaching plans with massive price tags that appear to achieve little. There is no guarantee this programme will deliver the economic rejuvenation its proponents promise. Unlike previous efforts to resuscitate the economy with “dumb” bridges and highways, this newly laid digital infrastructure will help national champions develop cutting-edge technologies.

“China’s new stimulus plan will likely lead to a consolidation of industrial internet
providers, and could lead to the emergence of some larger companies able to compete with global leaders, such as GE and Siemens,” said Nannan Kou, head of research at BloombergNEF, in a report. “One bet is on industrial internet-of-things (IoT) platforms, as China aims to cultivate three world leading companies in this area by 2025.”

China is not alone in pumping money into the technology sector as a way to get out of the post-coronavirus economic slump. Earlier this month, South Korea said AI and wireless communications would be at the core of it its “New Deal” to create jobs and boost growth.

Nothing like this has happened before, this is China’s gambit to win the global tech raceMaria Kwok, COO at Digital China Holdings

The 10 trillion yuan that China is estimated to spend from now until 2025 encompasses areas typically considered leading edge, such as AI and IoT, as well as items such as ultra-high voltage lines and high-speed rail, according to the government-backed China Centre for Information Industry Development. More than 20 of mainland China’s 31 provinces and regions have announced projects totaling over 1 trillion yuan with active participation from private capital, a state-backed newspaper reported on Wednesday.

Separate estimates by Morgan Stanley put new infrastructure at around US$180 billion each year for the next 11 years – or US$1.98 trillion in total. Those calculations also include power and rail lines. That annual figure would be almost double the past three-year average, the investment bank said in a March report that listed key stock beneficiaries including companies such as China Tower Corp, Alibaba, GDS Holdings, Quanta Computer and Advantech Co.

Beijing’s half-formed vision is already stirring a plethora of stocks, a big reason why five of China’s 10 best-performing stocks this year are tech plays like networking gear maker Dawning Information Industry and Apple supplier GoerTek. The bare outlines of the master plan were enough to drive pundits toward everything from satellite operators to broadband providers.

China’s telecoms carriers push to complete ‘political task’ of 5G network roll-out amid coronavirus crisis

6 Mar 2020

It is unlikely that US companies will benefit much from the tech-led stimulus and in some cases they stand to lose existing business. Earlier this year, when the country’s largest telecoms carrier China Mobile awarded contracts worth 37 billion yuan for 5G base stations, the lion’s share went to Huawei and other Chinese companies. Sweden’s Ericsson got only a little over 10 per cent of the business in the first four months. In one of its projects, Digital China will help the northeastern city of Changchun swap out American cloud computing staples IBM, Oracle and EMC with home-grown technology.

It is in data centres that a considerable chunk of the new infrastructure development will take place. Over 20 provinces have launched policies to support enterprises using cloud computing services, according to a March research note from UBS Group.

Tony Yu, chief executive of Chinese server maker H3C, said that his company was seeing a significant increase in demand for data centre services from some of the country’s top internet companies. “Rapid growth in up-and-coming sectors will bring a new force to China’s economy after the pandemic passes,” he told Bloomberg News.

From there, more investment should flow. Bain Capital-backed data centre operator ChinData Group estimated that for every one dollar spent on data centres another US$5 to US$10 in investment in related sectors would take place, including in networking, power grid and advanced equipment manufacturing. “A whole host of supply chain companies will benefit,” the company said in a statement.
There is concern about whether this long-term strategy provides much in the way of stimulus now, and where the money will come from. “It’s impossible to prop up China’s economy with new infrastructure alone,” said Zhu Tian, professor of economics at China Europe International Business School in Shanghai. “If you are worried about the government’s added debt levels and their debt servicing abilities right now, of course you wouldn’t do it. But it’s a necessary thing to do at a time of crisis.”
Digital China is confident that follow-up projects from its housing initiative in Guangzhou could generate 30 million yuan in revenue for the company. It is also hoping to replicate those efforts with local governments in the northeastern province of Jilin, where it has 3.3 billion yuan worth of projects approved. These include building a so-called city brain that will for the first time connect databases including traffic, schools and civil matters such as marriage registry. “The concept of smart cities has been touted for years but now we are finally seeing the investment,” said Kwok.
Source: SCMP
22/05/2020

China scraps annual economic growth target for first time

Workers assembling toys at the Mendiss toy factory in Shantou, in southern China's Guangdong province.Image copyright GETTY IMAGES

China will not set an economic growth goal for this year as it deals with the fallout from the coronavirus pandemic.

It is the first time Beijing has not had a gross domestic product (GDP) target since 1990 when records began.

The announcement was made by Premier Li Keqiang at the start of the country’s annual parliament meeting.

The world’s second largest economy shrank by 6.8% in the first quarter from a year ago as lockdowns paralysed businesses.

“This is because our country will face some factors that are difficult to predict in its development due to the great uncertainty regarding the Covid-19 pandemic and the world economic and trade environment,” Premier Li said.

The country’s leadership has promised to boost economic support measures amid growing concerns that rising unemployment could threaten social stability.

The move comes as tensions between Beijing and Washington are becoming increasingly strained over the coronavirus pandemic, trade and Hong Kong.

On Thursday, President Donald Trump stepped up his attacks on China, suggesting that the country’s leader, Xi Jinping, is behind a “disinformation and propaganda attack on the United States and Europe.”

It came as Mr Trump and other Republicans have escalated their criticism of Beijing’s handling of the early stages of the outbreak.

Also on Thursday, China announced plans to impose new national security legislation on Hong Kong after last year’s pro-democracy protests.

The announcement was met with a warning from Mr Trump that the US would react “very strongly” against any attempt to gain more control over the former British colony.

Separately, two US senators have proposed legislation to punish Chinese entities involved in enforcing the planned new laws and penalise banks that do business with them.

Earlier this week, the US Senate unanimously passed a proposal to delist Chinese companies from American stock exchanges if they fail to comply with US financial reporting standards.

US-listed Chinese companies have come under increasing scrutiny in recent weeks after Luckin Coffee revealed that an internal investigation found hundreds of millions of dollars of its sales last year were “fabricated”.

Source: The BBC

22/05/2020

NPC: China begins move to impose controversial Hong Kong security law

Shoppers walking past a broadcast of Chinese Premier Li Keqiang delivering his speech at the opening of the NPCImage copyright AFP / GETTY
Image caption Shoppers walking past a broadcast of Chinese Premier Li Keqiang delivering his speech at the opening of the NPC on Thursday

China’s ruling Communist Party has set in motion a controversial national security law for Hong Kong, a move seen as a major blow to the city’s freedoms.

The law to ban “treason, secession, sedition and subversion” could bypass Hong Kong’s lawmakers.

Critics say China is breaking its promise to allow Hong Kong freedoms not seen elsewhere in China.

It is likely to fuel public anger and may even trigger fresh protests and demands for democratic reform.

The plan was submitted at the annual National People’s Congress (NPC), which largely rubber-stamps decisions already taken by the Communist leadership, but is still the most important political event of the year.

Hong Kong, a semi-autonomous region and an economic powerhouse, was always meant to have introduced such laws after the handover from British control to Chinese rule in 1997.

After last year’s wave of sustained and violent protest, Beijing is now attempting to push them through, arguing “law-based and forceful measures” must be taken to “prevent, stop and punish” such protests in the future.

On Friday, Hong Kong’s government said it would co-operate with Beijing to enact the law, adding it would not affect the city’s freedoms.

What is in Beijing’s proposed law?

The “draft decision” – as it is known before approval by the NPC – was explained by Wang Chen, vice chairman of the Standing Committee of the NPC.

It consists of an introduction and seven articles. Article 4 may prove the most controversial.

That article says Hong Kong “must improve” national security, before adding: “When needed, relevant national security organs of the Central People’s Government will set up agencies in Hong Kong to fulfil relevant duties to safeguard national security in accordance with the law.”

China could essentially place this law into Annex III of the Basic Law, which covers national laws that must be implemented in Hong Kong – either by legislation, or decree.

Addressing the congress, Premier Li Keqiang spoke of the economic impact of the coronavirus and on Hong Kong and Macau said: “We’ll establish sound legal systems and enforcement mechanisms for safeguarding national security in the two Special Administrative Regions.”

What do opponents say the dangers are?

Hong Kong is what is known as a “special administrative region” of China.

It has observed a “one country, two systems” policy since Britain returned sovereignty in 1997, which has allowed it certain freedoms the rest of China does not have.

Pro-democracy activists fear that China pushing through the law could mean “the end of Hong Kong” – that is, the effective end of its autonomy and these freedoms.

Last year’s mass protests in Hong Kong were sparked by a bill that would have allowed extraditions to mainland China.

Media caption Former Hong Kong governor Chris Patten: “UK should tell China this is outrageous”

The bill was paused, then withdrawn – but the protests continued until the virus outbreak at the end of the year.

The US has also weighed in, with President Trump saying the US would react strongly if it went through – without giving details.

It is currently considering whether to extend Hong Kong’s preferential trading and investment privileges.

Why is China doing this?

Mr Wang said the security risks had become “increasingly notable” – a reference to last year’s protests.

“Considering Hong Kong’s situation at present, efforts must be made at the state-level to establish and improve the legal system and enforcement mechanisms,” he is quoted as saying in state media.

Media caption The BBC’s Helier Cheung on Hong Kong’s 2019 protests

Beijing may also fear September’s elections to Hong Kong’s legislature.

If last year’s success for pro-democracy parties in district elections is repeated, government bills could potentially be blocked.

What is Hong Kong’s legal situation?

Hong Kong was under British control for more than 150 years up to 1997.

The British and Chinese governments signed a treaty – the Sino-British Joint Declaration – that agreed Hong Kong would have “a high degree of autonomy, except in foreign and defence affairs”, for 50 years.

This was enshrined in the Basic Law, which runs out in 2047.

As a result, Hong Kong’s own legal system, borders, and rights – including freedom of assembly and free speech – are protected.

But Beijing has the ability to veto any changes to the political system and has, for example, ruled out direct election of the chief executive.

Media caption Uproar on Monday in Hong Kong’s legislature

Source: The BBC

21/05/2020

China’s top political advisory body starts annual session

(TWO SESSIONS)CHINA-BEIJING-CPPCC-ANNUAL SESSION-OPENING (CN)

The third session of the 13th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) opens at the Great Hall of the People in Beijing, capital of China, May 21, 2020. (Xinhua/Li Tao)

BEIJING, May 21 (Xinhua) — China’s top political advisory body started its annual session Thursday afternoon in Beijing.

Xi Jinping and other Chinese leaders attended the opening meeting of the third session of the 13th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), held at the Great Hall of the People.

Attendees at the meeting paid a silent tribute to martyrs who died fighting COVID-19 and compatriots who lost their lives in the epidemic.

The agenda for the session was reviewed and approved at the meeting.

Wang Yang, chairman of the CPPCC National Committee, delivered a work report of the Standing Committee of the CPPCC National Committee to the session.

The report noted the role of political advisors in the fight against the COVID-19 epidemic, saying that they have submitted more than 1,300 reports and suggestions on preventing and controlling the epidemic, resuming work and production, stabilizing public expectations and strengthening law-based governance.

Giving full play to role of the CPPCC as a specialist consultative body, 71 consultation meetings, 97 research trips as well as online consultations were organized in the past year, it said.

The report made arrangements for the CPPCC’s work in 2020 in six aspects, urging political advisors to fulfil their duties around achieving a moderately prosperous society in all respects.

Attendees were also briefed on the handling of proposals submitted since the previous annual session of the top political advisory body.

Source: Xinhua

20/05/2020

US semiconductor giant shuts China factory hailed as ‘a miracle’, in blow to Beijing’s chip plans

  • US chip giant GlobalFoundries confirms it has ceased operations at its only Chinese facility, with industry experts saying the poorly-planned project was doomed to fail
  • Closure deals blow to China’s plans to move up semiconductor value chain, amid increasingly hostile tech rivalry with the United States
Beijing boasted that the final total investment in the GlobalFoundries plant could be US$10 billion. The plant was intended to produce 300mm wafers, a key material in making chips, but production never started at the 65,000 square metre facility, which was completed mid-2018. Photo: Weibo
Beijing boasted that the final total investment in the GlobalFoundries plant could be US$10 billion. The plant was intended to produce 300mm wafers, a key material in making chips, but production never started at the 65,000 square metre facility, which was completed mid-2018. Photo: Weibo

US chip giant GlobalFoundries has halted operations at a joint venture factory in China, the company has confirmed, dealing a potential blow to China’s bid to own a bigger slice of the global semiconductor market.

The closure of the firm’s only China facility comes just three years after it announced plans to make chips in the mainland, and comes amid an escalating tech war with the United States.

The winding down, however, has little to do with the fierce superpower rivalry. It comes after two years of speculation as to what was actually happening at the US$100 million facility, which was hailed as “a miracle” by local media when announced to fanfare in 2017, but which never got off the ground.

Nonetheless, the symbolism is rich.

China is struggling in its efforts to boost its domestic chip research and production in a bid to counter US efforts to block it from American technology.

Last week, the US Department of Commerce upped the ante by banning the sale
of Huawei-designed chips produced outside America if they are made using the US software and technology, adding further pressure to the Chinese telecom giant’s global supply chain.
The GlobalFoundries factory, in a hi-tech park in the southwestern city of Chengdu, was one of China’s major foreign-invested semiconductor projects, for which the local government rolled out the red carpet three years ago.

At the time, Chengdu boasted that the final total investment in the plant could be US$10 billion. The plant was intended to produce 300mm wafers, a key material in making chips, but production never started at the 65,000 square metre facility, which was completed mid-2018.

A spokesperson for California-based GlobalFoundries confirmed that the Chengdu plant had stopped operations and that it had offered staff an “employee optimisation plan”, a commonly-used euphemism for lay-offs.

“The plan is being carried out on the basis of open and transparent communications with the employees and they have been offered various options to choose from based on their personal situations,” a company statement read.

A 2018 annual report from the joint venture, in which GlobalFoundries had a stake of 51 per cent with the rest controlled by an investment vehicle of the Chengdu government, showed that the plant had 320 employees.

A company notice sent to employees dated May 14 and seen by the Post said that after mid-June, the company would only pay 70 per cent of Chengdu’s minimum monthly wage, about 1,246 yuan (US$175.38), while negotiating severance packages with staff.

For some industry analysts who have followed the Chengdu project from its inception, its demise has less to do with the trade war, more to do with poor planning.

There was little detailed research and planning before the project was launched. As far as the Chengdu government is concerned, it lacks a sufficient understanding of GlobalFoundriesGu Wenjun, analyst

“There was little detailed research and planning before the project was launched. As far as the Chengdu government is concerned, it lacks a sufficient understanding of GlobalFoundries, its decision-making mechanism and economic strengths, and it did not get strong support from the central government,” said Gu Wenjun, chief analyst at Shanghai-based semiconductor research firm ICwise.
The idea of establishing a joint venture was first pitched to Chongqing municipality, a neighbouring city of Chengdu, in 2016. Chongqing signed a memorandum of understanding with GlobalFoundries to set up a plant to manufacture 300mm silicon wafers – components for making integrated circuits – using technology from GlobalFoundries’ Singapore factory.
After the deal to open a Chongqing plant fell through for unclear reasons, Chengdu moved in to cut a deal with GlobalFoundries in late-2016. A 2017 blueprint stated that 3,500 employees could be working at the site, according to Wallace Pai, then GlobalFoundries’ general manager for China.
But production never started. Initially the project was supposed to have two phases: using mainstream technologies to manufacture 300mm wafers from 2018, then transferring to more advanced technologies in late-2019.
However, in October 2018, the two partners decided to “bypass” the phase one manufacturing stage, partly because of China’s increasing demand for more advanced products and GlobalFoundries’ own financial stress. The project has since stalled.

Comparing official announcements from the Chengdu government and GlobalFroundries back in 2017, Gu from ICwise said the two had different focuses, which might explain the plant’s derailment. The government clearly wanted to bring in mainstream, lower-risk technologies to boost the city’s brand, while the company aimed for Chinese capital and government support to invest in more advanced technology, Gu said.

The joint venture will continue after the factory’s demise, with GlobalFoundries still expecting to expand sales in the Chinese market, the company said in its statement. It now has five factories, three in the US and one each in Singapore and Germany.

When The Post contacted the office of the joint venture partner within the Chengdu government, the person answering the phone said they did not know anything about the closure nor future plans, before hanging up without giving their name.

“Our focus in China is on developing and growing our partner ecosystem including creating local technology infrastructure and bringing more intellectual property vendors and electronic design automation partners to better serve the local market,” the company said.

According to the China Semiconductor Industry Association, China’s integrated circuits sales rose 15.8 per cent in 2019 from a year earlier to 756.2 billion yuan (US$106.44 billion), while sales in the global semiconductor market dropped by 12 per cent to US$412 billion.

Last week, Dutch company ASML Holding, a key supplier of chip-making equipment, set up a plant in Wuxi, in Jiangsu province, in a boost to China’s efforts to attract foreign semiconductor investment.

Source: SCMP

20/05/2020

Taiwan president rejects Beijing rule; China says ‘reunification’ inevitable

TAIPEI (Reuters) – Taiwan cannot accept becoming part of China under its “one country, two systems” offer of autonomy , President Tsai Ing-wen said on Wednesday, strongly rejecting China’s sovereignty claims and likely setting the stage for an ever worsening of ties.

China responded that “reunification” was inevitable and that it would never tolerate Taiwan’s independence.

In a speech after being sworn in for her second and final term in office, Tsai said relations between Taiwan and China had reached an historical turning point.

“Both sides have a duty to find a way to coexist over the long term and prevent the intensification of antagonism and differences,” she said.

Tsai and her Democratic Progressive Party won January’s presidential and parliamentary elections by a landslide, vowing to stand up to China, which claims Taiwan as its own and says it would be brought under Beijing’s control by force if needed.

“Here, I want to reiterate the words ‘peace, parity, democracy, and dialogue’. We will not accept the Beijing authorities’ use of ‘one country, two systems’ to downgrade Taiwan and undermine the cross-strait status quo. We stand fast by this principle,” Tsai said.

China uses the “one country, two systems” policy, which is supposed to guarantee a high degree of autonomy, to run the former British colony of Hong Kong, which returned to Chinese rule in 1997. It has offered it to Taiwan, though all major Taiwanese parties have rejected it.

China’s Taiwan Affairs Office, responding to Tsai, said Beijing would stick to “one country, two systems” – a central tenet of Chinese President Xi Jinping’s Taiwan policy – and “not leave any space for Taiwan independence separatist activities”.

“Reunification is a historical inevitability of the great rejuvenation of the Chinese nation,” it said. “We have the firm will, full confidence, and sufficient ability to defend national sovereignty and territorial integrity.”

China views Tsai as a separatist bent on formal independence for Taiwan. Tsai says Taiwan is an independent state called the Republic of China, its official name, and does not want to be part of the People’s Republic of China governed by Beijing.

TAIWAN OPEN TO DIALOGUE

China has stepped up its military drills near Taiwan since Tsai’s re-election, flying fighter jets into the island’s air space and sailing warships around Taiwan.

Tsai said Taiwan has made the greatest effort to maintain peace and stability in the narrow Taiwan Strait that separates the democratic island from its autocratic neighbour China.

“We will continue these efforts, and we are willing to engage in dialogue with China and make more concrete contributions to regional security,” she added, speaking in the garden of the old Japanese governor’s house in Taipei, in front of a socially-distanced audience of officials and diplomats.

Taiwan has become a rising source of friction between China and the United States, with the Trump administration strongly backing Taiwan even in the absence of formal diplomatic ties.

U.S. Secretary of State Mike Pompeo sent his congratulations to Tsai on Tuesday, praising her “courage and vision in leading Taiwan’s vibrant democracy”, in a rare high-level message from Washington direct to Taiwan’s government.

China’s Foreign Ministry condemned Pompeo’s remarks, and said the government would take “necessary countermeasures”, though did not elaborate.

China cut off a formal talks mechanism with Taiwan in 2016 after Tsai first won election.

Yao Chia-wen, a senior adviser to Tsai, told Reuters the chance of talks with China were small given ongoing tensions.

“We are ready to engage with them any time, but China is unlikely to make concessions to Taiwan,” he said. “In the next four years there’s little chance for the cross-strait relationship to improve.”

Source: Reuters

18/05/2020

Xi Focus: Xi replies to letter from Pakistani students studying in Beijing

A graduating foreign student takes selfies at Zhejiang University in Hangzhou, east China’s Zhejiang Province, June 28, 2018. (Xinhua/Long Wei)

BEIJING, May 18 (Xinhua) — Chinese President Xi Jinping extended welcome to excellent youth from all countries in the world to study in China in his Sunday reply to a letter from all Pakistani students studying in the University of Science and Technology Beijing (USTB).

In his letter, Xi encouraged the students to communicate more with their Chinese peers and join hands with youth from all countries to contribute to promoting people-to-people connectivity and building a community with a shared future for humanity.

Learning that the students have enriched their knowledge and made quite a few Chinese friends while studying in China, Xi said he felt happy for the achievements they have made.

“As you have felt, since the COVID-19 epidemic broke out, the Chinese government and schools have always cared for the lives and health of foreign students studying in China, providing all-round help for them,” Xi noted.

The Chinese government and people put people’s lives first and treat foreigners in the country the same as Chinese nationals, making no exception in offering them care, Xi wrote.

Photo taken on Nov. 7, 2019 shows the autumn scenery of the University of Science and Technology Beijing in Beijing, capital of China. (Xinhua/Chen Yehua)

Xi said he learned that many foreign students have expressed their support to the Chinese people in various ways during China’s fight against COVID-19.

“A friend in need is a friend indeed,” he said, adding that China will continue providing various help to all foreign students studying in the country.

While welcoming excellent youth from other countries to study in China, Xi encouraged them to learn more about the country, communicate more with their Chinese peers and tell the world more about the China they see.

The USTB currently has 52 Pakistani students. They recently wrote about their experiences and feelings of studying in China in a letter to Xi and expressed their gratitude to the university for providing care and help for them after the COVID-19 outbreak.

They also expressed their aspirations to join in building the Belt and Road after graduation and contribute to enhancing China-Pakistan friendship.

Source: Xinhua

18/05/2020

China sends special investigation team to Israel after ambassador’s death

  • Details remain scant one day after body of 57-year-old diplomat Du Wei is found at his home in Tel Aviv
  • Top Israeli foreign ministry official extends condolences to deputy ambassador Dai Yuming
Police, ambulance and embassy staff at the residence where Chinese ambassador Du Wei was found dead on Sunday. Photo: EPA-EFE
Police, ambulance and embassy staff at the residence where Chinese ambassador Du Wei was found dead on Sunday. Photo: EPA-EFE
China is sending a special investigative team to Israel following the sudden death of its ambassador Du Wei, whose body was found at his residence on Sunday.
The team, accompanied by a member of Du’s family, was due to travel on Monday, and will handle arrangements for the remains, as well as conducting its own internal investigation, according to Israeli newspaper Haaretz.
Israel’s foreign ministry said its director general Yuval Rotem had spoken with deputy ambassador Dai Yuming to express his condolences. Local police are continuing to investigate at Du’s residence in a suburb of Herzliya, near Tel Aviv.
Details from the Chinese side have been scant. China’s foreign ministry provided a statement to AFP on Sunday which said the preliminary verdict was that Du, 57, had died unexpectedly for health reasons, and details awaited further confirmation. AFP also reported that Du’s wife and son were not with him in Tel Aviv.

“As far as I know, China’s ambassador to Israel Du Wei passed away in ambassador’s residence in Tel Aviv this morning for physical reasons. It happened abruptly,” said Hu Xijin, editor-in-chief of state media tabloid Global Times in a tweet late on Sunday night.

Du was last seen in public on Tuesday in a video conference with an official from Israel’s foreign affairs ministry, according to the embassy website.

James Dorsey, senior fellow at the S. Rajaratnam School of International Studies in Singapore, said Du’s untimely death should be seen as a personal, rather than a political, tragedy for the growing relationship between China and Israel, but he said it came at an important moment for the two countries because of rising US-China tensions.

Dorsey said Israel’s increasing hi-tech cooperation with China, as well as continuing US hostility to Iran – which has close ties with China – were potentially problematic for relations between the two countries.

“I’m not sure that the China-Israel relationship can be seen as independent of the Israel-US relationship. One could argue that the Chinese may be well advised to very quickly replace him soon,” Dorsey said. “Israel could find itself on the fault line of deepening US-China decoupling,” he added.

Israel’s ambassador to China in quarantine after ‘infected’ flight to Seoul

28 Feb 2020

Following a brief trip to Jerusalem on Wednesday – his first foreign visit since March – US Secretary of State Mike Pompeo renewed warnings about China-Israel ties in an interview with Israeli state-owned media outlet Kan News.

“We do not want the Chinese Communist Party to have access to Israeli infrastructure, Israeli communication systems, all of the things that put Israeli citizens at risk,” he said.

China’s embassy in Tel Aviv blasted Pompeo’s comments as “absurd” and “ill-intentioned”. However, the embassy statement was not written by Du, but by a spokesperson.

Du had only served in Israel since February. Just before his arrival, the Chinese embassy had to issue an apology after then-acting ambassador Dai denounced Israel’s tightened restrictions on Chinese visitors by comparing them to the Holocaust.
During his brief tenure, Du gave frequent interviews to local media, speaking mainly about China’s virus control measures, US-China tensions, and friendship between China and the Jewish people.
Du had worked as a career diplomat since entering China’s foreign service in 1989. Before his appointment in Tel Aviv, he served as China’s ambassador to Ukraine from 2016-2019.
Source: SCMP
17/05/2020

Lufthansa Cargo adds more flights to mainland China, ferrying urgent supplies to Europe

  • There has been strong demand for air freight services since April, when Chinese factories got back to work
  • Cargo flights have become critical in moving protective health equipment across the globe
Planes of German air carrier Lufthansa at the country’s largest airport in Frankfurt. Photo: Reuters
Planes of German air carrier Lufthansa at the country’s largest airport in Frankfurt. Photo: Reuters

German freight carrier Lufthansa Cargo is expanding in China, surpassing 100 weekly flights for the first time, and adding new flights to Shenzhen.

Peter Gerber, CEO of Europe’s largest cargo airline, said there had been heavy demand for its services, though this might cool by the peak of summer.

“At the moment, cargo demand is very, very strong,” he told the Post. “It started to get strong in April, when Chinese industries got back to work, and after that we have seen a constant, heavy demand, a real peak.”

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Global air freight capacity has been squeezed as two-thirds of the world’s aircraft have been grounded by the Covid-19 pandemic.
The collapse of air travel has practically put a stop to passenger flights, which typically carry half of all air cargo.

Since the pandemic, cargo flights have been critical in moving protective health equipment across the globe. From sending masks and other supplies to China in February, the German carrier is now taking urgent supplies from the mainland back to Europe.

Peter Gerber says Lufthansa Cargo has a high responsibility in maintaining supply chains, for both global health and world trade. Photo: Handout
Peter Gerber says Lufthansa Cargo has a high responsibility in maintaining supply chains, for both global health and world trade. Photo: Handout
“We have a high responsibility in maintaining supply chains in these unprecedented times for both global health and world trade,” Gerber said.

With the addition of Shenzhen, Lufthansa Cargo will fly to five destinations in China. It serves more than 300 destinations in 100 countries.

The cargo carrier is part of the Lufthansa Group and coordinates all the freight that goes into the passenger planes of its sibling brands, including Lufthansa, Swiss and Austrian.

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By next week, Lufthansa Cargo will be running more freight flights to China than the 72 passenger flights the group flew weekly before the pandemic to Beijing, Shanghai, Shenyang, Nanjing and Qingdao.

Lufthansa Cargo has a fleet of seven Boeing 777 Freighters (777Fs), with two new 777Fs arriving this year as part of its strategy to operate a fleet with a single aircraft type.

It also has six McDonnell Douglas-11Fs that Gerber said would still be retired as planned at the end of 2020, despite the extra demand for cargo capacity.

Its additional flights to China will make use of “preighters” – passenger aircraft flying cargo only. Gerber felt the trend of using empty passenger planes as “preighters” had peaked, pointing out that they cost the same to operate as freighters but carry only a fraction of the cargo.

Although he did not rule out future expansion, he said: “Demand will gradually come down in the next two or three months because a lot of equipment would have been shipped by then and some shipments will go on rail or ocean shipping.”

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He said some uncertainty remained over continued demand for airfreighted cargo, given the battered state of the world economy. Airlines would have to consider longer-term demand before deciding to invest more in cargo aircraft. “It depends how it looks beyond the next year,” he said.

Gerber said no decision had been taken yet on whether to convert some of the group’s orders for Boeing’s newest widebody 777X passenger aircraft into cargo planes.

He added that future plane orders would be balanced against the wider needs and spending decisions at Lufthansa Group, which is currently negotiating a government pandemic bailout package in the region of 9 billion (US$9.7 billion).

Source:SCMP

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