17/04/2020
- Fu Chengyu, the former chairman of China National Offshore Oil Corporation (CNOOC), says hostility towards Beijing will increase after the coronavirus
- US will try to ‘thwart China’s rise’ and economic fallout from Covid-19 will be worse than the global financial crisis, says Fu
Former Sinopec chairman Fu Chengyu says China will face a more hostile world post coronavirus. Photo: EPA
The world is set to become more hostile for China after the coronavirus as the risk of “black swan” events gathers for Beijing, a heavyweight in China’s state oil industry has warned, reflecting growing wariness about the geopolitical environment among political and business elites.
Fu Chengyu, the former chairman of both China National Offshore Oil Corporation (CNOOC) and Sinopec Group, painted an ominous picture of increasing antagonism from the United States and damaging unforeseen events, known as black swans, like Covid-19
at an online symposium organised by business magazine Caijing.
The US would “mercilessly” suppress China in the fields of economics, trade, finance and technology, and Washington was set on taking advantage of the coronavirus pandemic to “forge a less favourable international environment for” the nation, Fu said this week.
“We’ve smelled the odours and new plots against China are in formation,” he said.
After the epidemic, the external environment for our survival will be more severe – Fu Chengyu
“After the epidemic, the external environment for our survival will be more severe … we must prepare for the worst and do our best to achieve the best possible results.”
While Fu has retired from his posts at state companies, he is an influential voice in
with decades of experience and contacts in the US petroleum sector.
Fu was a counterpart of Rex Tillerson, who was chairman of ExxonMobil from 2006 to 2017, and served as US State Secretary under President Donald Trump until March 2018.
While at the helm of CNOOC in the early 2000s, he felt political heat from Washington over a US$18.5 billion takeover bid for the American oil company Unocal in 2005, which the company was subsequently forced to withdraw.
China says no evidence to suggest coronavirus virus came from Wuhan’s lab
“The crisis stemming from the coronavirus pandemic won’t be over in just one or two years … the impact will last longer than the 2008 global financial crisis,” he said.
He added that China would face numerous “black swan” risks in the future.
President Xi Jinping warned in 2019 that China must be on guard for black swan risks as well as “grey rhino” events, referring to an obvious threat that is often neglected.
Geopolitics is getting worse and worse, and we need to be very careful. The US will try various ways to thwart China’s rise, and energy is an important area
To respond to the economic fallout from the coronavirus, China must do more to create a self-sustaining domestic economy, Fu said, and in particular reduce input prices for gas and electricity and boost public services such as health care and education.
“Geopolitics is getting worse and worse, and we need to be very careful,” Fu said. “The US will try various ways to thwart China’s rise, and energy is an important area.”
The US could potentially form a new oil export alliance with Saudi Arabia and Russia to make it possible to cut oil supplies to China, he said.
“China must be prepared for such a scenario, and even when supplies are cut off, we can have some basic self-protection.”
Source: SCMP
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28/08/2019
- It follows Beijing’s decision earlier this month to turn down an application for two US Navy ships to visit Hong Kong
- The countries have traded barbs about the handling of anti-government protests in the city
The US has had port visits denied by Chinese authorities twice this month. Photo: Alamy
A US Navy warship was denied a port visit to the eastern Chinese city of Qingdao on Sunday, the US Indo-Pacific Command said on Wednesday.
The request denial comes at a time of heightened tensions between China and the United States, with the countries engaged in a prolonged trade dispute and a war of words over anti-government protests in Hong Kong.
“The PRC [People’s Republic of China] denied the US Navy’s request to visit the Qingdao Port,” Commander Reann Mommsen, public affairs officer for the US Seventh Fleet, said in a statement on Wednesday.
Mommsen declined to name the warship denied entry or when the request was refused, referring questions about the reasons to Beijing.
The blocked visit was first reported by Reuters, which cited an anonymous US defence official as saying that China had denied the request for the destroyer before the intended visit on Sunday.
It is the second time in a month that China has prevented US Navy vessels making a port call.
On August 13, the United States Pacific Fleet said China had denied requests for two US Navy ships to
visit Hong Kong.
The USS Green Bay, an amphibious dock landing ship, had been due to make a port call in Hong Kong on August 17, and the guided missile cruiser USS Lake Erie was scheduled to visit next month, according to Nate Christensen, deputy spokesman for the Pacific Fleet.
A source close to the Chinese navy confirmed the Qingdao rejection, saying it was “normal practice” based on the current China-US relationship.
“Hasn’t the [US’] application to visit Hong Kong just been rejected?” the source asked.
Hong Kong has seen 12 weeks of anti-government protests, triggered by a now-shelved
that would have allowed criminal suspects to be transferred to mainland China.
Zhou Chenming, a Beijing-based military expert, said the refusal was a natural result of the worsening bilateral ties between China and the US.
“Many bilateral exchanges are bound to deteriorate when countries’ ties worsen, such as during the China-US trade war. And now coupled with the Hong Kong unrest, many exchanges [between China and the US] have been downgraded,” Zhou said.
Liu Weidong, from the Chinese Academy of Social Sciences, echoed Zhou’s view and said a visit from the US warship would be meaningless at present.
“Now the US is very provocative … so China doesn’t want to welcome its warship,” Liu said.
Doubt has been cast on whether trade talks between the two countries are set to resume, with Beijing’s foreign ministry contradicting US President Donald Trump’s claim that China had sought a return to the negotiating table.
The countries had been due to speak on Tuesday, according to a previous statement from China’s Ministry of Commerce after their last telephone call on August 13. But there has been no announcement so far from either side on whether such a conversation took place.
Last week, China said it would levy retaliatory tariffs of 5 to 10 per cent on US$75 billion worth of US goods. The Trump administration responded by announcing a tariff increase from 25 to 30 per cent on US$250 billion of Chinese goods, and from 10 to 15 per cent on US$300 billion worth of Chinese products.
The US also designated Beijing as a currency manipulator, raising fears of an economic cold war between the two countries.
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