Archive for ‘Trade’

12/11/2019

Feature: Xi spearheads closer China-LatAm cooperation for common prosperity

MEXICO CITY, Nov. 12 (Xinhua) — China and Latin America sit on the opposite sides of the globe, but the formidably vast Pacific Ocean that separates them did not stop them from sharing a long history of exchanges.

Today, the major developing country in the East is forging an increasingly close partnership with the dynamic region in the Western Hemisphere, especially since Chinese President Xi Jinping took office in 2013, and set into motion what is now known as Xiplomacy.

In the past six years, Xi has visited 11 Latin American and the Caribbean (LAC) countries. On Tuesday, he is setting foot on the region for the fifth time as president, as he arrives in Brazil for the upcoming 11th BRICS summit.

Thanks in no small part to Xi’s push, the time-honored, distance-defying China-Latin America relationship is flourishing with new vitality. China has become the second largest trading partner of Latin America, while the latter is one of the fastest growing sources of exports to China. Two-way trade rose 18.9 percent year on year to 307.4 billion U.S. dollars in 2018.

GRAND VISION

Every time Xi visited Latin America, he reaffirmed China’s commitment to cementing bilateral friendship and expanding win-win cooperation.

His first trip to the region as head of state, in 2013, took him to Trinidad and Tobago, Costa Rica and Mexico. The following year saw him travel to Brazil, Argentina, Venezuela and Cuba.

It was in Brazil that Xi met with leaders from 11 LAC countries, and for the first time laid out his grand vision for building a China-Latin American community with a shared future.

“Let us seize the opportunities presented to us and work together to blaze new trails in building a community of shared destiny for common progress and usher in a bright future for the relations between China and Latin America and the Caribbean,” Xi said in a keynote speech at the first ever China-Latin American and Carribean Countries Leaders’ Meeting in 2014.

He then proposed a “1+3+6” cooperation framework to “promote faster, broader and deeper cooperation between the two sides for real results.”

The “1” refers to “one plan,” the Chinese-Latin American and Caribbean Cooperation Plan (2015-2019), formulated to promote inclusive growth and sustainable development.

The “3” alludes to “three engines” for driving practical cooperation for comprehensive development, namely trade, investment and financial cooperation.

The “6” means the six priority cooperation fields of energy and resources, infrastructure building, agriculture, manufacturing, scientific and technological innovation, and information technologies.

In 2016, Xi visited Ecuador, Peru and Chile. Two years later, he traveled to Argentina for the Group of 20 summit as well as Panama, a Central American country which established diplomatic ties with China in June 2017.

In a landmark speech at the Peruvian Congress in Lima in 2016, Xi expounded the significance of strengthening China-Latin America cooperation.

“With one fifth of the world’s total area and nearly one third of the world’s population, China and Latin America and the Caribbean are crucial forces for world peace and stability,” he said.

China, he added, “will increase sharing of governance experience and improve planning and coordination of macro policies with Latin American and Caribbean states to better synergize our development plans and strategies.”

Besides top-level engagement, Xi also reaches out to local people from all walks of life, in order to keep cementing the China-Latin America friendship and the public support for bilateral cooperation.

While in Costa Rica, Xi visited a family-run coffee plantation and tried some local brew. “I think some more coffee can well be exported to China,” Xi told his hosts with a smile.

Today, Costa Rica exports coffee to the Asian market, along with pork, dairy, pineapples and other high-quality agricultural goods, especially after the inauguration of the China International Import Expo in 2018.

NEW OPPORTUNITIES

With international cooperation within the framework of the Belt and Road Initiative (BRI) gaining steam worldwide, the Xi-proposed vision is creating new opportunities for China-Latin America cooperation.

The BRI, designed to promote common development along and beyond the ancient Silk Road trade routes, comprises the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and the latter is closely connected to Latin America.

For two and a half centuries, from the mid-1500s to the early 1800s, galleons laden with Chinese silk, spices, porcelain and other goods sailed across the ocean to today’s port city of Acapulco on the Mexican Pacific coast.

Latin America is the natural extension of the 21st Century Maritime Silk Road, Xi said in a meeting with visiting Argentine President Mauricio Macri in May 2017.

In a congratulatory message to the second Ministerial Meeting of the China-Community of Latin American and Caribbean States (CELAC) Forum held in Chile on Jan. 22, 2018, Xi stressed that China and LAC countries “need to draw a new blueprint for our joint effort under the Belt and Road Initiative and open a path of cooperation across the Pacific Ocean that will better connect the richly endowed lands of China and Latin America and usher in a new era of China-LAC relations.”

During Xi’s visits, the Chinese president is always dedicated to better aligning the BRI — an open platform for cooperation — with the development plans of LAC countries.

In his meeting with Macri, Xi called for dovetailing the BRI with Argentina’s development strategy, expanding cooperation in such sectors as infrastructure, energy, agriculture, mining and manufacturing, and implementing existing major cooperation projects in hydro-power, railway and other fields.

Similarly, during the state visit to Panama in December 2018, Xi said the National Logistics Strategy of Panama 2030 and the BRI are highly compatible, calling on the two sides to synergize their respective development strategies, boost cooperation and promote connectivity.

So far, 19 LAC countries have signed BRI cooperation agreements with China. China-Latin America cooperation in various areas has effectively promoted local economic and social development, bringing visible and tangible benefits to the Latin American people.

Just as Xi said in his speech at the Peruvian Congress in 2016, “China will share its development experience and opportunities with the rest of the world and welcome other countries to board the express train of its development, so that we can all develop together.”

SOurce: Xinhua

11/11/2019

Spotlight: China-Brazil trade set to reach new heights

SAO PAULO, Nov. 11 (Xinhua) — Though separated by oceans and continents, China and Brazil have fostered deepening bilateral cooperation over the years, especially in  investment, trade and finance.

With the upcoming 11th BRICS summit in Brazil’s capital Brasilia, expectations are high for the development of closer ties between the two countries.

STRENGTHENING INVESTMENT

China and Brazil have bolstered investment ties in recent years, and the Asian country has become Brazil’s largest source of foreign investment.

The two countries are not only deepening cooperation in the traditional areas of agriculture, electricity, mining and infrastructure, but also fostering growth in new areas such as technology innovation and the digital economy.

Last month, Brazilian telecommunications giant Oi put Chinese company Huawei’s 5G technology to the test during a local music festival — the largest trial of the 5G technology in Brazil.

Chinese Internet giant Alibaba’s website AliExpress has become one of Brazil’s most popular cross-border e-commerce platforms. Chinese Internet company Tencent and mobile ride-hailing platform DiDi have also invested in Brazilian companies.

Finally, the participation of Latin American countries — including Brazil — in jointly building the Belt and Road will provide a great opportunity for these countries to enhance investment cooperation with China, said Oliver Stuenkel, an expert of international relations at Brazil’s Getulio Vargas Foundation.

INCREASING TRADE

Although the global economy is facing downward pressure, bilateral trade between China and Brazil has continuously climbed, as both countries are committed to opening up their markets.

China has been Brazil’s largest trading partner and largest export market for a decade. In 2018, bilateral trade hit a record 100 billion U.S. dollars, official data showed.

Cheese bread, Brazil’s favorite breakfast and snack food, is now available at cafeterias in China, thanks to the first China International Import Expo (CIIE) in Shanghai last year.

In May, Brazil’s leading cheese bread maker Forno de Minas shipped its first container of 10 tons of cheese bread to China, supplying cafeterias in Shanghai. Two months later, the bakery shipped a second batch of 18 tons to China.

Brazil is also dedicated to opening up by optimizing its business environment. Li Tie, general manager of the Brazilian branch of BYD, a leading Chinese manufacturer of electric vehicles and batteries, said that the Brazilian government has actively promoted pension and labor law reforms and is planning to carry out tax reforms.

China and Brazil should further enhance their economic and trade relations, which have been fruitful and mutually beneficial, said Sergio Segovia, president of the Brazilian Trade and Investment Promotion Agency.

FINANCIAL COOPERATION

The two countries have enhanced cooperation in the financial sector.

In September, the Brazil government relaxed restrictions on the establishment of financial institutions. Bank XCMG, affiliated to China’s Xuzhou Construction Machinery Group, has become the first foreign bank that was approved by Brazil’s central bank after the release of the new regulation, and the bank’s foreign shareholding ratio is as high as 100 percent.

Wang Yansong, XCMG’s vice president, said that Bank XCMG will carry out financial leasing and other services in Brazil and help companies reduce exchange rate risks and financing costs.

As cross-border trade grows, fin-tech companies from both countries have carried out in-depth cooperation, such as that between Brazilian financial payment company Ebanx and AliExpress, in providing consumers with cross-border payment solutions.

In 2018, Ebanx handled 35 million cross-border transactions related to Chinese merchants, said its co-founder and CFO Wagner Ruiz. He expressed the hope that the company can help Chinese merchants sell more in Latin America in the future.

The BRICS leaders’ meeting is an excellent opportunity for Brazil to deepen business, investment and financial cooperation with China and other BRICS countries, said Marcos Trojan, special secretary for foreign trade and international affairs of Brazil’s Ministry of Economy.

Source: Xinhua

08/11/2019

Xi Focus: Xi’s trip to Greece, Brazil to advance bilateral ties, BRICS cooperation

BEIJING, Nov. 7 (Xinhua) — Chinese President Xi Jinping’s upcoming visit to Greece and Brazil is expected to intensify China’s relations with the two countries and enhance BRICS cooperation, officials said here Thursday.

At the invitation of Greek President Prokopis Pavlopoulos, Xi will pay a state visit to Greece from Nov. 10 to 12, said Vice Foreign Minister Qin Gang.

This will be the first visit to the European country by a Chinese president after an interval of 11 years, which will exert a historic influence of China-Greece ties and push forward China-Europe relations and Belt and Road cooperation, Qin said.

He noted that China and Greece, both with old civilizations, are trustworthy and helpful friends respecting and supporting each other on core interests and major concerns.

Greece is among the first European Union (EU) countries to sign an intergovernmental cooperation document with China to jointly construct the Belt and Road, Qin said, adding that Greek prime ministers attended the first and second Belt and Road Forum on International Cooperation in Beijing.

The two sides have conducted fruitful cooperation on the principle of mutual benefit and win-win cooperation and witnessed increased bilateral trade and investment, Qin said.

“The Piraeus Port project, a flagship project for the Belt and Road cooperation, has made important contributions to the local economic and social development of Greece and played an important role in advancing connectivity in various regions around the globe,” said the vice foreign minister.

Speaking of people-to-people and cultural exchanges, Qin said peoples of the two countries respect each other and advocate openness and inclusiveness in their close interactions.

“Both China and Greece hold that different civilizations should respect each other and facilitate experience sharing, mutual learning and conversation among civilizations,” he said.

China and Greece are new friends of the “17 +1” cooperation. In April this year, Greece became a full member of the China-Central and Eastern European Countries Cooperation Mechanism, adding new opportunities to the development of this mechanism, which is also conducive to developing China-EU relations and China-EU connectivity, Qin said.

Greek Prime Minister Kyriakos Mitsotakis led a delegation to the ongoing second China International Import Expo (CIIE). Xi met with him, and the two leaders visited the Greek pavilion, Qin said.

According to Qin, in Greece, Xi is scheduled to hold talks respectively with Pavlopoulos and Mitsotakis, in a bid to consolidate political mutual trust and traditional friendship between the two countries, intensify pragmatic cooperation in trade, investment, infrastructure and other fields, uphold multilateralism and free trade and build an open world economy.

Besides, Qin noted that the Chinese and Greek leaders will conduct cultural exchanges and advocate dialogues among civilizations.

The two sides will issue a joint statement on strengthening the comprehensive strategic partnership, draw up a blueprint for the development of bilateral ties, sign intergovernmental cooperation documents on investment and education, and ink commercial agreements in such fields as ports, finance, and energy.

Greece, in the West, and China, in the East, are heirs of ancient civilizations. Noting that both China and Greece are faced with the mission of rejuvenation and prosperity, Qin said the two countries can enlighten the world to deal with various problems and challenges.

Xi’s upcoming visit to Greece shows respect and appreciation of the ancient Chinese civilization to the ancient Greek civilization, as well as the expectation of jointly building a community with a shared future for humanity, Qin said.

It is believed the visit will elevate the level of bilateral cooperation in an all-round way and inject new impetus to the development of China-EU relations with fruitful results, Qin stressed.

According to Vice Foreign Minister Ma Zhaoxu, at the invitation of Brazilian President Jair Messias Bolsonaro, Xi will attend the 11th BRICS summit in Brasilia, the capital of Brazil, from Nov. 13 to 14.

BRICS is the acronym for an emerging-market bloc that groups Brazil, Russia, India, China and South Africa.

Xi is scheduled to attend the closing ceremony of the BRICS business forum, closed and public meetings of the BRICS leaders’ meeting and the BRICS leaders’ dialogue with the BRICS Business Council and the New Development Bank. The leaders’ declaration is expected to be released, Ma said.

Xi will hold talks with Bolsonaro, sign cooperation documents in various fields, and hold bilateral meetings with leaders of other participating countries to exchange views on ties and BRICS cooperation, Ma said.

As the world is undergoing changes rarely seen in a century and confronted with unprecedented opportunities and challenges, BRICS countries have drawn ever-growing attention worldwide, Ma said, stressing that China appreciates the efforts made by Brazil in its preparation and stands ready to jointly prompt the meeting to achieve fruitful results.

He voiced expectations of the Chinese side.

“The Chinese side hopes that BRICS countries will further enhance political mutual trust, boost mutually beneficial cooperation and forge a more comprehensive, closer and broader partnership,” Ma said.

As for safeguarding multilateralism and strengthening global governance, Ma voiced China’s determination to make joint efforts with other BRICS countries to safeguard the rules-based multilateral trade system, the international order based on international law, and the international system with the UN at the core.

This aims to promote a more equitable, open, transparent and inclusive global governance system and safeguard common interests and development space of emerging markets and developing countries, Ma said.

“China believes the five BRICS countries should follow the trend of the new industrial revolution and facilitate economic transformation and upgrading,” Ma noted.

As an important outcome of last year’s Johannesburg meeting, the BRICS partnership for a new industrial revolution has progressed well in the past year, he said, adding that China is willing to work with concerned parties to accelerate the development of the partnership and tap more potential for cooperation projects, so as to propel high-quality development of the five countries.

“China looks forward to more cooperation on economy, trade, finance, political security and people-to-people exchanges, with projects meeting the development needs of the five countries and serving the interests of their peoples,” he said.

The Chinese side believes that with concerted efforts of all parties and under the political guidance of the five countries’ leaders, the 11th BRICS Summit will be a full success, Ma said, stressing that the BRICS countries will continue to contribute to world peace and development and the building of a community with a shared future for humanity.

Source: Xinhua

04/11/2019

China, Kazakhstan to expand cooperation in multiple areas, boost ties

CHINA-BEIJING-HAN ZHENG-KAZAKHSTAN-FIRST DEPUTY PM-MEETING (CN)

Chinese Vice Premier Han Zheng, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, meets with Kazakhstan’s First Deputy Prime Minister Alikhan Smailov, who also co-chaired the 9th meeting of the China-Kazakhstan Cooperation Committee, in Beijing, capital of China, Nov. 4, 2019. (Xinhua/Yan Yan)

BEIJING, Nov. 4 (Xinhua) — Chinese Vice Premier Han Zheng met with Kazakhstan’s First Deputy Prime Minister Alikhan Smailov Monday in Beijing, who also co-chaired the 9th meeting of the China-Kazakhstan Cooperation Committee.

Han, also a Standing Committee member of the Political Bureau of the Communist Party of China Central Committee, said the development of bilateral ties had been healthy and steady to become a model of relations between neighboring countries.

Earlier this year, China and Kazakhstan upgraded their relations to a permanent comprehensive strategic partnership, which Han said marked a new phase of bilateral relations.

The China-Kazakhstan Cooperation Committee, as an intergovernmental mechanism, makes overall planning for, coordinates and guides bilateral cooperation.

Han said since the last meeting of the committee, the two countries had deepened the synergy of their development strategies, accelerated trade, investment and industrial cooperation, strengthened financial cooperation, and continuously enhanced cooperation in security, environmental protection, energy, technology and mining.

Noting the solid foundation, huge potential and broad prospects of bilateral cooperation, Han said the two countries should promote cooperation in industrial capacity, transportation, agriculture and energy.

He called on the two sides to jointly implement the synergy between the Silk Road Economic Belt and Kazakhstan’s “Bright Road” new economic policy, strengthen innovation-driven cooperation and carry out digital industry, blockchain and biotechnology cooperation to create new growth points.

He said the two sides should carry out more facilitation measures to constantly optimize the business environment and guarantee the rights and interests of enterprises from both countries.

Smailov said Kazakhstan is ready to work with China to promote cooperation in trade, finance, energy, agriculture, transportation, logistics and infrastructure to benefit the two peoples.

Source: Xinhua

03/11/2019

Machynlleth crocodile skull raid prompts trade warning

Seized crocodile skullImage copyright DYFED-POWYS POLICE
Image caption Trade in some species, including some types of crocodiles, is banned outright

People buying animal “souvenirs” have been warned they must check they are legal after police seized a number of crocodile skulls imported from China.

Police are investigating the finds after searching two properties in Machynlleth, Powys, on Wednesday.

Dyfed-Powys Police and North Wales Police said they had found “numerous” skulls across the searches.

Animal trade charity Traffic said importers and buyers must make sure they had the correct permits.

Richard Thomas, from Traffic, said some people would buy things such as skulls as a “talking point”.

Trade in some species, including some types of crocodiles, is banned outright, but others can be bought and sold as long as the exporting country issues permits.

Earlier this month, police seized a skull of a critically endangered Siamese crocodile from a man in Chippenham, Wiltshire, after he paid about £30 to a buyer in China.

Wiltshire Police said the man bought it as an “unusual” house ornament and had no idea that it was protected.

No further action was taken against him when police decided he had made an honest mistake.

The Convention on International Trade in Endangered Species of Wild Fauna and Flora is the main worldwide agreement controlling trade in wild animals and plants, and is signed by more than 180 countries.

In 2016, the UN estimated that the annual value of illegal wildlife trade was between $7bn-$23bn (£5.4bn-£17.8bn).

Traffic said demand for such items as horns, ivory, bones and skins was “driving unprecedented wildlife population declines”.

Source: The BBC

29/10/2019

Chinese Premier’s trip to Uzbekistan, Thailand to cement ties, all-round cooperation among SCO, East Asia

BEIJING, Oct. 28 (Xinhua) — Premier Li Keqiang’s upcoming trip to Uzbekistan and Thailand is of great importance to cementing cooperation among both SCO members and East Asian states, as well as solidifying Chinese relations with Uzbekistan and Thailand, senior officials said at a press briefing Monday.

Premier Li is scheduled to attend the 18th meeting of the Council of Heads of Government (Prime Ministers) of the Shanghai Cooperation Organization (SCO) in the Uzbek capital Tashkent, pay an official visit to Uzbekistan, and attend the 22nd China-ASEAN (10+1) leaders’ meeting, the 22nd ASEAN-China, Japan and Republic of Korea (10+3) leaders’ meeting and the 14th East Asia Summit (EAS) in the Thai capital Bangkok before paying an official visit to Thailand, from Nov. 1 to 5.

During the SCO heads of government meeting, Li will explain Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and share the successful construction experience of the People’s Republic of China in the past 70 years, according to Assistant Foreign Minister Chen Xiaodong.

“Li will exchange in-depth views with the leaders of the participating countries on enhancing solidarity and mutual trust among member states, building the Belt and Road Initiative and cooperation in such fields as economy and trade, industrial capacity, connectivity, finance, investment and people-to-people exchanges,” Chen said.

Noting it will be Li’s first official visit to Uzbekistan, Chen said the premier will exchange views with the Uzbek side on implementing the important consensus of the two heads of state, promoting the development of bilateral relations and international and regional issues of common concern. The two sides will sign a series of cooperation agreements covering economy and trade, investment, science and technology, customs and other fields.

Regarding the East Asian leaders’ meeting on cooperation, Chen said the premier will expound on China’s policy proposals for East Asian cooperation and propose more than 20 new initiatives for deepening cooperation under various mechanisms.

The East Asian leaders’ meeting this year will strengthen consensus, deepen cooperation, improve regional economic integration, promote regional common prosperity and development, and send out a positive signal of adhering to multilateralism and free trade, building an open world economy, according to Assistant Minister of Commerce Li Chenggang.

Calling Thailand a traditional friendly neighbor and important partner for the Belt and Road cooperation, Chen said Premier Li’s official visit to Thailand is the second visit by the premier in six years.

During the visit, the premier will exchange in-depth views with the leaders of the Thai side on bilateral relations and cooperation. The two sides will issue a joint press statement between the two governments and sign cooperation documents in such fields as technology and e-commerce.

Source: Xinhua

25/10/2019

China, ASEAN trade to continue expanding, driving global growth amidst uncertainties: Malaysian official

KUALA LUMPUR, Oct. 25 (Xinhua) — Trade between China and the Association of Southeast Asian Nations (ASEAN) will continue to expand, serving as an engine for global economic growth, Malaysian International Trade and Industry Deputy Minister Ong Kian Ming said on Friday.

Speaking at the 2019 China Macroeconomic Roundtable “Economic Forecast, High Quality Development, and Policy Implications” hosted in Xiamen University Malaysia, Ong said despite downward forecasts, strong economic activity between China and the ASEAN would help both weather the storm.

As the economic growth in China and Southeast Asia would continue to outstrip the economic growth of the United States as well as Europe, the greater cooperation between China and the ASEAN will have a bigger impact to the wider world, Ong said.

“We definitely can see Asia not only as an engine of services and manufacture and production but also later on as the engine of growth for the global economy. So there are many opportunities for China and Southeast Asia to work together in order to improve the economic outlook for our respective countries, as well as globally,” he said.

Jointly organized by the Center for Macroeconomics Research at Xiamen University and Xiamen University Malaysia, this year’s overseas forecast conference is the first time that the event was held in Malaysia.

At the conference, the team from the Center for Macroeconomics Research at Xiamen University released China’s main macroeconomic indicators for 2019-2020 and reported its policy implications based on simulation analysis.

Also released was the findings of this year’s “Economists Questionnaire Survey on China’s Macroeconomic Outlook,” which was co-organized by Xiamen University and Economic Information Daily newspaper.

Since 2006, Xiamen University has been holding China’s macroeconomic forecast conference twice a year.

Source: Xinhua

19/10/2019

China expected to ramp up South Pacific push at economic forum in Samoa

  • Vice-Premier Hu Chunhua will lead delegation at two-day summit that is expected to be attended by 400 officials and 200 businesspeople
  • Observers say it is Beijing’s latest effort to regain momentum in the region and will be closely watched in the US
Samoan capital Apia will host the third China-Pacific Island Countries Economic Development Cooperation Forum, which begins on Sunday. Photo: Alamy
Samoan capital Apia will host the third China-Pacific Island Countries Economic Development Cooperation Forum, which begins on Sunday. Photo: Alamy

China will seek to expand its economic and diplomatic influence in the South Pacific at a forum this weekend, amid growing concern from the US and its allies over Beijing’s push in the strategically important region.

Vice-Premier Hu Chunhua will lead the Chinese delegation at the third China-Pacific Island Countries Economic Development Cooperation Forum in the Samoan capital Apia, which begins on Sunday. It is expected to be attended by 400 officials and more than 200 businesspeople.

Hu, the former Communist Party chief of China’s manufacturing powerhouse Guangdong who now overseas commercial and agricultural affairs, is expected to deliver a keynote speech at the opening ceremony.

Beijing sees the two-day forum as “timely” and “a good opportunity to deepen mutually beneficial cooperation between China and the Pacific”, a commerce ministry spokesperson told the official Economic Daily newspaper.

Trade, agriculture and fisheries, as well as tourism, infrastructure and climate change were at the top of the agenda for the forum, the spokesperson said.

Leaders of all the Pacific nations – except the four that do not have formal diplomatic ties with Beijing – are expected to attend the forum. Australia, which has “observer status” at the summit, will send Ewen McDonald, deputy secretary of the Department of Foreign Affairs and Trade and the head of its Pacific office.

Vice-Premier Hu Chunhua will lead the Chinese delegation at the forum. Photo: EPA-EFE
Vice-Premier Hu Chunhua will lead the Chinese delegation at the forum. Photo: EPA-EFE

The forum comes after China hailed a “new breakthrough” in the region following the decision last month by the Solomon Islands and then Kiribati – despite warnings from the US – to cut diplomatic ties with Taipei and switch to Beijing.

They are the latest of Taipei’s allies to be poached by Beijing as it ramps up pressure on the self-ruled island that it sees as a renegade province to be reunited with the mainland, by force if necessary.
Observers said this weekend’s forum was Beijing’s latest effort to regain momentum in the Pacific.

“Having one of China’s top 25 officials visit the region so soon after [Chinese President] Xi Jinping spent close to three days in Papua New Guinea last November is certainly significant,” said Jonathan Pryke, director of the Pacific Islands programme at the Lowy Institute in Sydney, referring to Hu’s position in the 25-member Politburo.

“It shows clearly China’s attempt to recapture momentum after the West, and in particular Australia, have redoubled their efforts in maintaining and building relationships in the Pacific,” he said.

Papua New Guinea’s Prime Minister Peter O’Neill (second from left) and Chinese President Xi Jinping (second from right) pose for a photo during Xi’s visit in November. Photo: AFP
Papua New Guinea’s Prime Minister Peter O’Neill (second from left) and Chinese President Xi Jinping (second from right) pose for a photo during Xi’s visit in November. Photo: AFP

First held in Fiji in 2006, the forum is part of China’s efforts to expand its reach in the resource-rich region.

Back then, premier Wen Jiabao announced 3 billion yuan of concessional loans to Pacific nations and promised to facilitate more trade, medical aid and tourism with the countries. Chinese capital has been pouring into the region – particularly from the mining and fisheries sectors – ever since.

Of note was a 440 million yuan investment, supported by loans from the Export-Import Bank of China, to build a central business centre at Nuku’alofa, the capital of Tonga.

US and allies sideline China in PNG’s Bougainville by helping fund independence vote

As China’s influence grows, the South Pacific – a region traditionally under US hegemony, and on Australia’s doorstep – has “increasingly become a major power that cannot be neglected” and “an important part of China’s greater strategic landscape”, according to Shi Chunlin, an associate professor at Dalian Maritime University.

Trade has increased between China and the eight Pacific nations that have diplomatic ties with Beijing, rising to a combined US$4.32 billion last year – up 25 per cent from 2017.

China has also become the largest trading partner of new ally the Solomons, the second-largest to Papua New Guinea and Fiji, and the third-largest to Samoa.

China’s direct investment in the region has also jumped, reaching US$4.53 billion last year, a more than fourfold increase from the US$900 million of 2013.

Pryke said Beijing was expected to offer new support and loans to the Pacific nations.

“But the Pacific are much more picky about how they want to engage with all partners than they were a decade ago,” he added.

Returning from a trip to China earlier this month, Solomon Islands Prime Minister Manasseh Sogavare confirmed Beijing would provide a US$74 million grant to build a new stadium for the 2023 Pacific Games in the capital Honiara – something its former ally Taipei had committed to fund.

China Sam Group also reportedly signed an agreement on September 22 to lease the island of Tulagi in the Solomons, the site of a former Japanese naval base. The agreement mentioned the development of a refinery on the island, but critics said it could also potentially be used as a military base.

China is now the second-largest donor in the region, only after Australia, which has viewed Beijing’s financial largesse with suspicion.

Last year, in an apparent effort to counter China’s rising influence in the region, Australian Prime Minister Scott Morrison announced that Pacific countries would be offered up to US$2.18 billion in grants and cheap loans to build infrastructure.

Australian Prime Minister Scott Morrison last year announced up to US$2.18 billion in grants and cheap loans for infrastructure in Pacific nations. Photo: EPA-EFE
Australian Prime Minister Scott Morrison last year announced up to US$2.18 billion in grants and cheap loans for infrastructure in Pacific nations. Photo: EPA-EFE

The US, meanwhile, has also been wary of China’s push in the Pacific, amid an escalating geopolitical competition between the world’s two largest economies across many fronts – from trade to tech supremacy and security. The US has long maintained exclusive defence access in the region through its Guam military base and security pacts with the Federated States of Micronesia, the Marshall Islands and Palau.

Derek Grossman, a senior defence analyst with the US-based Rand Corporation, said this year’s forum in Samoa was likely to be higher profile than previous years after Beijing lured away two more diplomatic allies from Taipei.

He said it would be “closely watched in the US for how Beijing continues to leverage sweet economic deals via its Belt and Road Initiative to potentially entice others to switch”.

“The US, along with close friends Australia, Japan and New Zealand, are becoming increasingly concerned over the prospects for China to one day curry enough influence in these small island states to gain port access that could be used for new naval bases,” he said.

The most important issue at the forum, he said, would be “whether the West assesses that China is making further inroads with these states”.

“The likely answer will be that it is, suggesting that the US and its partners will have to compete with China in this region to ensure that it remains ‘free and open’, per the US Indo-Pacific strategy,” he said.

Source: SCMP

17/10/2019

China says it hopes to reach phased trade pact with U.S. as early as possible

BEIJING (Reuters) – China’s commerce ministry said on Thursday that China hoped to reach a phased agreement with the United States over trade as early as possible, and make progress on canceling tariffs on each others’ goods.

A phased agreement would help restore market confidence and reduce uncertainty, Gao Feng, spokesman at the ministry, told reporters, adding that both sides were maintaining close communication.

On Oct. 11, U.S. President Donald Trump outlined the first phase of a deal to end the trade war with China and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed.

Trump had originally planned to proceed with a hike in tariffs to 30% from 25% on about $250 billion worth of Chinese goods last week. But the U.S. administration has yet to make a decision on how to address planned 10% tariffs on roughly $156 billion of Chinese goods due to take effect on Dec. 15.

U.S. and Chinese trade negotiators are working on nailing down a Phase 1 trade deal text for their presidents to sign next month, U.S. Treasury Secretary Steven Mnuchin said on Wednesday.

Mnuchin said the Trump administration’s “objective” was for the agreement to be signed between the presidents of the two countries at a Nov. 16-17 summit of Asia-Pacific Economic Cooperation countries in Santiago, Chile.

Working-level representatives from both countries are working on specifics of an agreement now, Gao said.
In recent days, there have been positive signs from China.
China’s securities regulator on Friday unveiled a firm timetable for scrapping foreign ownership limits in futures, securities and mutual fund companies for the first time.
Increasing foreign access to the sector is among the U.S. demands at the trade talks.
A day before, the U.S. Department of Agriculture confirmed net sales of 142,172 tonnes of U.S. pork to China in the week ended Oct. 3, the largest weekly sale to the world’s top pork market on record.
Trump said China had agreed to make purchases of $40 billion to $50 billion in U.S. agricultural goods. Mnuchin said the purchases would be scaled up to that amount annually.
On Wednesday, Chinese Premier Li Keqiang said China will remove business restrictions on foreign banks, brokerages and fund management firms, without giving details.
Source: Reuters
02/10/2019

France’s Emmanuel Macron to meet Xi Jinping in China next month with focus on climate change and trade, source says

  • The trip comes amid growing resistance from European leaders over what they see as China’s failure to change long-term practices unfair to foreign investors
  • French President’s trip to Beijing follows Chinese leader’s visit to France in March
President Emmanuel Macron of France speaks to the Council of Europe parliamentary assembly on Tuesday. Photo: AFP
President Emmanuel Macron of France speaks to the Council of Europe parliamentary assembly on Tuesday. Photo: AFP

French President Emmanuel Macron will visit China next month as Europe’s most diplomatically active leader focuses on climate change cooperation and trade promotion with Asia’s leading power, a source briefed on the Elysee Palace’s discussions said.

This will be the second Chinese tour for Macron since he took office in 2017, and it will come amid escalating resistance from European politicians and business communities over what they see as China’s failure to change long-standing practices unfair to foreign investors.

His visit also comes at a time when France – as well as the European Union as a whole – is bracing for Washington’s potential levies of tariffs on European products, and the lack of progress on climate change policies with US President Donald Trump’s administration.

“President Macron will meet President Xi [Jinping], while France strives for better cooperation with China on climate and trade,” the source said. “His itinerary is still in the pipeline, but he is expected to visit Beijing and Shanghai.”

Macron, 41, who is widely seen as emerging as Europe’s most aggressive leader filling the political vacuum left by German Chancellor Angela Merkel’s political twilight, has cast himself as an honest broker between Russia and Ukraine, and between the US and Iran.

He has also been critical of China’s influence in Europe, joining forces with Merkel to push for a tougher EU stance on the world’s second biggest economy.

In March, when Xi claimed a major diplomatic victory by clinching a memorandum of understanding with Italy on the Belt and Road Initiative, Macron declared: “The time of European naivety is ended. For many years we had an uncoordinated approach and China took advantage of our divisions.”

Macron also backed investment screening mechanisms for Chinese business moves in Europe, while endorsing plans to change the EU’s notoriously strict antitrust rules in order to facilitate mergers between large European groups and companies to counter Chinese companies’ global ambitions.

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The EU is also wary of China’s effort to “divide and rule” the European Union. Greece and Hungary – both recipients of large amounts of Chinese investments – have repeatedly wanted to water down EU’s stance on issues deemed sensitive to Beijing, including the South China Sea and China’s human rights violations.

“It would be good [for Macron] to stress that 17+1 is irritating,” said Joerg Wuttke, president of EU Chamber of Commerce in China, in reference to China’s engagement with a group of EU and non-EU member states in eastern and southeastern Europe.

“After all, the EU has a ‘one China’ policy, [so] EU could expect this position from China too.”

Macron’s domestic call for EU unity has translated into diplomatic appeals, with China being one of the targets.

(From left) Jean-Claude Juncker, president of the European Commission; Xi Jinping, China’s leader; Emmanuel Macron, France’s president; and Angela Merkel, Germany's chancellor, ahead of a meeting in Paris on March 26. Photo: Christophe Morin/Bloomberg
(From left) Jean-Claude Juncker, president of the European Commission; Xi Jinping, China’s leader; Emmanuel Macron, France’s president; and Angela Merkel, Germany’s chancellor, ahead of a meeting in Paris on March 26. Photo: Christophe Morin/Bloomberg

When Xi visited France in March, Macron hosted him at the Elysee Palace in the presence of Merkel and European Commission President Jean-Claude Juncker, showcasing European solidarity when it comes to EU-China policies.

In terms of French-Chinese bilateral ties, trade imbalances have persisted after Macron called for a “rebalancing” during his last visit.

France has a 1.4 per cent market share in China, compared with China’s 9 per cent market share in France. China represents France’s largest bilateral trade deficit, totalling €US$29.2 billion (US$31.9 billion) last year, ahead of Germany.

The EU has been calling for reciprocal investment treatment with China, a call that European business leaders in China expect Macron to make.

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“We [Europe] need … a solid investment agreement to allow EU business to conduct their affairs in a similar manner as Chinese companies can operate in Europe. The agreement should be finalised in 2020, but not at all cost,” said Wuttke.

“The last thing EU business needs in China is a weak agreement that institutionalises imbalances,” he added.

Part of that involves building “more efficient defensive tools to prevent abusive technology transfers and to address the deep asymmetry in EU-China relations when it comes to access to public procurement markets,” said Mathieu Duchâtel, director of Asia programme at the Paris-based think tank Institut Montaigne.

Duchâtel added that it was also important to convey the message to Beijing that there are areas for cooperation even amid a more defensive China policy from France.

Chinese President Xi Jinping and French leader Emmanuel Macron toast raise a toast during a state dinner in Paris on March 25. Photo: EPA-EFE
Chinese President Xi Jinping and French leader Emmanuel Macron toast raise a toast during a state dinner in Paris on March 25. Photo: EPA-EFE

One such area is the climate and environment, where China is “an important partner” for France to reach its goal of global carbon neutrality by 2050, he said.

“The energy/environment agenda is a political priority in Paris and one of very few issues on which cooperation with China remains promising and will continue to create business opportunities,” he said.

China is the world’s biggest carbon polluter, producing around 30 per cent of the planet’s man-made carbon dioxide. It remains committed to the 2015 Paris accord on climate change, even after Trump pulled the US out of the deal.

Under the agreement, the long-term temperature goal is to keep the increase in global average temperature to well below 2°C above pre-industrial levels, and to pursue efforts to limit the increase to 1.5°C.

Source: SCMP

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