Archive for ‘Osaka’

06/07/2019

China Focus: Peacebuilders in China-Japan friendship

TIANJIN/BEIJING, July 6 (Xinhua) — Even at the age of 100, Yang Enze, one of the founders of China’s optical communication, does not stop his research and teaching as a professor at Tianjin University.

Besides his pioneering achievements as the chief engineer of China’s first optical communication project for practical use in the 1970s, Yang is also known as a survivor and a witness of the war of Japanese aggression against China.

“I was admitted to Wuhan University in 1937, the year when Japanese troops attacked the Lugou Bridge, also known as Marco Polo Bridge, on the outskirts of Beijing, on July 7,” said the senior recalling the start of his academic study.

The incident marked the beginning of Japan’s full-scale war against China during World War II and triggered China’s full-scale resistance against the invasion.

Ahead of the 82nd anniversary of the incident that falls on Sunday, Yang said because of the war, his university in central China’s Hubei Province was relocated to southwestern province of Sichuan to avoid the enemy forces. “Even in Sichuan, there were a lot of Japanese bombings, but none of the students missed any of the classes as long as there was no air-raid siren,” he recalled.

It was at that time he and many of his peers cemented the belief that the country needed advanced science and technology for reconstruction and revival.

“I have always kept in mind late chairman Mao Zedong’s words that it was Japanese militarists’ crime that was to blame for the war, not Japanese civilians, ” Yang said, noting that he still gets in touch with many Japanese scholars.

He established the first optical communication laboratory in Tianjin in 1985, when he was invited to teach at Tianjin University. In Yang’s career, he has made friends with several leading experts from Japan at international conferences and even kept friendship with some of them.

Also in Tianjin, Morita Naomi, a Japanese language teacher in Nankai University, works as a consultant to the school’s research institute of Zhou Enlai-Daisaku Ikeda.

“By involving in the research of the friendship between the late Chinese premier and the Japanese philosopher, I want to search for the core factors that help consolidate the friendship between the two peoples,” said Naomi.

She came to Nankai to pursue a master-degree study in Modern Chinese and Chinese Literature in 2010 and has stayed ever since.

When she first arrived, she had troubles even in learning Chinese phonics. Now she can read and speak Chinese fluently, write beautiful Chinese characters, and study ancient Chinese literature independently.

As a teacher, she feels frustrated that most of her Chinese students are more likely to be attracted by Japanese animation and games rather than Japanese literature.

According to the school’s statistics, nearly half of the undergraduates in the 2019 class of Japanese major chose to work in Japanese-funded enterprises or Japanese-related enterprises after graduation.

Naomi said Japanese visitors to China are more likely to choose destinations like Beijing, Shanghai and Guangzhou. Peking University in Beijing impresses young Japanese most.

According to a report released by the China Tourism Academy, China received 2.69 million Japanese visitors in 2018, making Japan China’s fourth largest source of foreign tourists. In the same year, Chinese made 9.06 million outbound visits to Japan as a direct destination.

The academy released the report at the 2019 China-Japan Tourism Forum Dalian held on May 26, which focused on promoting win-win cooperation on cultural exchanges and tourism between the two countries.

China and Japan agreed to push forward bilateral relations along the right track of peace, friendship and cooperation, at the summit of the Group of 20 (G20) major economies held in Osaka, Japan, in June.

This year marks the 70th anniversary of the founding of the People’s Republic of China, and Japan has also entered the Era of Reiwa. It is also the China-Japan Youth Exchange Promotion Year, for promoting friendship and cooperation in a wide range of areas between the two peoples.

“We keep the wartime memory not because we bear the hatred, but because we want the younger generations to cherish what they own today and move towards a better future,” said 70-year-old Zhen Dong, who on Friday visited an exhibition on Beijing’s past, held in Beijing Municipal Archives.

Zhao Hongwei, a professor with Tokyo-based Hosei University, said when it comes to the bilateral relations between China and Japan, it is very important to promote the free trade agreement and expand the markets of both sides.

Source: Xinhua

06/07/2019

New Delhi and Beijing cannot let differences turn into disputes: India’s ambassador to China

  • Ambassador Vikram Misri has called on China to balance its US$60 billion trade deficit with India ‘before the issue becomes politically sensitive’
  • He also says India will not take sides over its use of US-blacklisted Huawei, as ‘any decision taken over this will only be taken in our national interest’
Indian ambassador to China Vikram Misri says that while the countries’ differences will not derail ties, there are still thorny issues to grapple with. Photo: CGTN
Indian ambassador to China Vikram Misri says that while the countries’ differences will not derail ties, there are still thorny issues to grapple with. Photo: CGTN
India and China must actively manage their differences

so they do not get in the way of the Asian superpowers working together for global stability, India’s top diplomat in China said on Friday.

To emphasise his point, Ambassador Vikram Misri listed eight long-standing and new bilateral issues that required attention, including 
India

’s almost US$60 billion trade deficit with China, cooperation on counterterrorism and a

peaceful resolution to their border dispute

.

“This trade imbalance is not economically sustainable in the long run,” said Misri at an Asia Society event in Hong Kong. “It is in our mutual interest to find workable solutions before the markets react in unpredictable ways and the issue becomes politically sensitive.”
Frosty ties between two of the world’s largest economies have thawed in the past year following a 73-day 
military stand-off in the Himalayas

in 2017, with Beijing seeking to forge closer ties with New Delhi amid its ongoing trade and tech war with the United States.

Ivanka Trump, the unlikely messenger of India-US relations
In May, Beijing dropped its long-held objections towards United Nations sanctions on

Masood Azhar

, the founder and leader of terrorist group Jaish-e-Mohammed, which was behind the suicide bombing of Indian soldiers that brought India and Pakistan to the brink of war earlier this year.

Analysts said this would pave the way for a better relationship between India and China.
Misri said both countries enjoyed a “full-spectrum relationship” of economic, commercial and people-to-people ties, and this was reinforced by the “strong personal bond” Indian Prime Minister

Narendra Modi

and Chinese President

Xi Jinping

had, despite the “elements of competition”.

The leaders of the two nations met four times last year and twice in 2019, with Xi set to visit India later this year. Both men share an understanding that “our rise can be mutually reinforcing” and a mutual interest in “preventing differences from turning into disputes”, the ambassador added.

But while Misri, a career diplomat posted to Beijing at the start of this year, stressed that differences would not derail ties, he made no bones about the thorny issues both sides are grappling with.

Will Modi’s snub of Xi’s belt and road derail China-India ties?
Both nations are still engaged in the second of a three-stage process to settle their border dispute – the world’s largest in terms of area, he said.
The first stage was an agreement on the political parameters for a boundary settlement in 2005. The current stage involves agreeing on a framework for a boundary settlement, which Misri said would be translated “into a delineated and demarcated boundary” in the final stage.
Communication over water and shared rivers has also been a key area of cooperation for the two nations.
Indian ambassador to China Vikram Misri speaking at the Asia Society in Hong Kong. Photo: Asia Society
Indian ambassador to China Vikram Misri speaking at the Asia Society in Hong Kong. Photo: Asia Society

They have established channels for information sharing on cross-frontier rivers, which last year enabled the Chinese side to warn the relevant Indian authorities of a landslide which would send a large amount of water to India. While in this instance the two sides were able to avert a loss of life, they can do more to broaden cooperation, Misri said.

He alluded to how China and India are vying for influence in the Indian Ocean, saying it was an area where both had “contiguous zones of maritime interest”.

The two sides need to work together to preserve peace and stability in the Indo-Pacific region – which stretches from the Indian Ocean to the central Pacific Ocean – and ensure transparent economic and commercial cooperation, infrastructure and connectivity, he said.

As China, India and Russia draw close, has Trump overplayed his hand?

Misri, who served as the private secretary to Modi as well as former prime ministers Manmohan Singh and I.K. Gujral, said there were three areas of mutual interest for India and China.

Besides a “peaceful periphery”, they should cooperate to ensure there are open international systems regarding trade and technology, and that global governance is reformed so the voices of nations such as theirs can be heard.

The Russia-India-China trilateral meeting on the sidelines of last month’s 

G20

summit in Osaka, where leaders discussed issues ranging from energy security to climate change, was an opportunity to discuss alternative viewpoints on changing international issues.

This was crucial amid the economic instability caused by 
US-China trade tensions

, that were causing “generalised damage” to the global economy, Misri said.

In the question and answer session with the event’s 112 attendees, Misri was asked if India was feeling the pressure to choose in the face of US efforts to get its allies to reconsider using or ban Chinese tech firm 
Huawei

from their superfast 5G networks.

Washington says Huawei equipment could be used by Beijing for spying and the US Commerce Department has placed the company on its entity list, effectively banning US companies from selling equipment and components to it.
When US President 
Donald Trump

and Xi met at the G20 summit, Trump announced American companies could resume sales to Huawei as long as the products involved did not threaten national security.

Misri referred to this, and said: “Let’s see how it shapes up.”
He added the issue was far from decided for India as it had only achieved 4G connectivity recently and was not yet ready to build out its 
5G

infrastructure.

Still, he said, “there’s no question on taking sides over this”. “Our leadership is very clear that any decision taken over this will only be taken in our national interest.”
Source: SCMP
04/07/2019

Samsung and other South Korean companies’ exodus from China sets an example to Western firms fleeing trade war tariffs

  • Lotte, Kia and Hyundai are also gradually winding down their China business due to political risks, tariffs and losing market share
  • Western companies fleeing Donald Trump’s tariffs may not have luxury of a managed exit, but should look at the South Korean case studies closely, experts say
Samsung’s last mobile phone production line remaining in China in Huizhou is winding down, implementing a voluntary retirement programme. Photo: He Huifeng
Samsung’s last mobile phone production line remaining in China in Huizhou is winding down, implementing a voluntary retirement programme. Photo: He Huifeng
Upon landing in Australia in 2017 to attend a seminar, a senior politician with South Korea’s parliamentary defence committee was greeted by Julie Bishop, then Australia’s foreign minister, who had a burning question: “How are you dealing with the China threat?”
Bishop was referring to the treatment of South Korean firms in China, which escalated after Seoul agreed in 2016 to a long-standing request from the United States to allow the deployment of the Terminal High Altitude Area Defence system (THAAD) on South Korean soil.
Lotte Corporation, one of Korea’s chaebol conglomerates that dominate its economy, had sold a plot of land in Seongju county to the South Korean government, on which the system’s radar and interceptor missiles were set up. While both Washington and Seoul said it was meant to counter threats from North Korea, Beijing viewed THAAD as a security risk, since its radar had the range to monitor China’s nearby military facilities.
After it was deployed in 2017, THAAD triggered widespread boycotts of Lotte’s retail operations in China, with the state-owned media acting as aggressive cheerleaders. The company was sanctioned by Beijing, with its expansion plans in China grinding to a halt on the orders of the Chinese government.
The Terminal High Altitude Area Defence (THAAD) arrived in Seongju in September 2017. Photo: Reuters
The Terminal High Altitude Area Defence (THAAD) arrived in Seongju in September 2017. Photo: Reuters

Australia – like South Korea – is heavily dependent on trade with China, but is also closely bound to the US in defence and political terms, and Bishop feared that should Australia fall out of favour with Beijing, Australian companies could face similar risks, and so she sought the counsel of the politician, who asked not to be named.

The case of Canadian canola and meat exports being banned from China, reportedly in retaliation for the arrest of Huawei chief financial officer Meng Wanzhou, also known as Sabrina Meng and Cathy Meng, is an example of how third nations can be drawn into the modern day superpower rivalry.

Many analysts say the efforts of South Korean firms in China should be essential study material for Western governments and businesses about the political risks of doing business in the mainland, which are growing as the US-China trade war threatens to draw in other nations and expand into a broader geopolitical struggle.

But large South Korean firms have been gradually withdrawing from China for a number of years – even before the THAAD crisis – and have been able to leave on a managed basis. They are leaving to avoid a repeat of the political crisis that ruined Lotte’s China business, and to avoid tariffs on exports of their China-made products to the US.

Lotte have been forced to close retail operations in China. Photo: Reuters
Lotte have been forced to close retail operations in China. Photo: Reuters

But they are also leaving because Chinese firms have become much more competitive in the domestic market that South Korean companies had found so fruitful for more than a decade – a fate that could easily befall Western companies that are eyeing China’s burgeoning middle-class consumer market. Now, while American firms are considering exiting China and setting up in nations that have lower tariff access to the US, South

Korean competitors have had a few years’ head start.

“In a way, all the problems that some South Korean companies had since 2017 might be a blessing in disguise. It meant that they started all of this [supply chain shift] two years before all the other companies,” said Andrew Gilholm, Seoul-based director of analysis for China and Korea at political risk advisory, Control Risks.

Another chaebol, Samsung Electronics, opened its first plant in Vietnam in 2008 and this long-term presence has enabled it to build a supply chain of South Korean companies, which in turn makes it easier for other South Korean firms to establish a base in the Southeast Asian nation.

We have experienced some of the worst situations in China over the past few years and learnt that the political risk there wouldn’t just simply go away overnight Ex-Lotte Shopping manager

As a result, South Korean investment into Vietnam climbed to US$1.97 billion in the first half of 2018, exceeding the country’s investment in China of US$1.6 billion over the same period for the first time, according to the Export-Import Bank of Korea.

Overall in 2018, South Korea’s total investment to the Southeast Asian country totalled US$3.2 billion. Its exports to Vietnam also increased to US$48.6 billion, 121 times that of 1992, when the two countries established diplomatic relations, and the trend is expected to continue.

“We have experienced some of the worst situations in China over the past few years and learnt that the political risk there wouldn’t just simply go away overnight,” said a former manager of Lotte Shopping, the chaebol’s retail arm, who spoke on condition of anonymity.

“China may pass all the legislation ensuring the safety of foreign investments and the rights of multinational companies, but the chance of it swinging away again when there is another political confrontation is just too high … we cannot afford to take any more risk.”

China eventually lifted its economic sanctions on Lotte in April, and the municipal government of Shenyang, the capital of Liaoning province in Northeastern China, gave the company permission in May to resume work on the US$2.6 billion Lotte Town shopping and leisure development.

But according to a person close to the project, Lotte is considering selling the complex after its completion, as it does not wish to continue its retail business in China. A Lotte spokesman declined to comment, saying the situation is “complicated”.

On one hand, its eagerness to leave China reflects the volatility in the market, but on the other, its decision to complete the construction of project before leaving suggests an unwillingness to burn bridges in the process, analysts said.

Samsung is another South Korean giant downsizing its Chinese manufacturing presence after it closed its Shenzhen production line in May 2018, followed by its Tianjin factory in December.

Samsung has been very aware of the potential issues around those closuresJason Wright

Its last remaining mobile phone production line in

China, in Huizhou, is also winding down,

implementing a voluntary retirement programme. Samsung is also considering moving some television manufacturing from China to Vietnam, according to a company insider.

However, it too, is carefully managing its exit strategy, said Jason Wright, founder of Hong Kong-based intelligence firm Argo Associates, who is advising a growing number of South Korean companies seeking to leave China. Samsung is still a large supplier of microchips to Chinese companies like Huawei, and to exit on negative terms could disrupt its ongoing business.
“Samsung has been quite generous in the packages that have been offered [to workers in the factories that it has closed],” Wright said. “Samsung has been very aware of the potential issues around those closures.”
As well as the political risks and tariffs, Samsung has seen its mainland market share in several product queues shrink dramatically due to competition from Chinese rivals. Its share of China’s smartphone market, for example, fell from 20 per cent in 2013 to just 0.8 per cent last year, according to Strategy Analytics, a market research firm.
Over the same period, it has been moving its supply chain out of China in a “subtle and imperceptible” way, according to Julien Chaisse, a professor of trade law at City University of Hong Kong who has advised, among others, Lotte on its plans to relocate to Vietnam.
Samsung Electronics opened its first plant in Vietnam in 2008. Photo: Cissy Zhou
Samsung Electronics opened its first plant in Vietnam in 2008. Photo: Cissy Zhou
As stories emerged in June that Apple was considering a partial exit of China, it was impossible not to see parallels. iPhone sales in China fell 30 per cent in the first quarter of 2019, according to research firm Canalys, while smartphones will be among those facing a potential tariff of up to 25 per cent, although this has been at least delayed after the trade war truce agreed by

US President Donald Trump

and Chinese President Xi Jinping at the

G20 summit in Osaka.

Meanwhile, South Korean car companies Kia and Hyundai’s combined market share in China fell to 2.7 per cent last year, from about 10 per cent at the beginning of the decade. Both companies, which have shared ownership, are downsizing their Chinese operations.

“In the past, China was just a great market, but for Korea, now China has become a competitor. So that is really a change in the dynamic over the last five years. China was not really able to compete with Korea in most areas,” said Wright from Argo Associates.

City University of Hong Kong professor Chaisse traces the exodus of South Korean firms back to 2014, before THAAD and before the trade war, and highlighted an arcane arbitration case at the United Nations’ dispute settlement courts as a turning point. After that case, South Korean companies in China faced an increasingly hostile environment.

Filed in 2014 and settled in 2017, the case emerged after South Korean company Ansung Housing had been forced to sell a golf resort it was developing in Eastern China after a change in the country’s real estate legislation.

Ansung took the case to an arbitration panel, claiming it breached a Sino-Korean investment treaty. The company won – only the second defeat for China in two decades of participation in the court, but this ushered in a “change in atmosphere” for South Korean firms.

“My take is that while the Korean case is unique for a number of reasons, it highlights what is going to happen to many other foreign companies operating in China,” Chaisse said.

“I think very soon even European companies will be reconsidering their businesses in China. Every time it will be a different story: different countries, different companies, in different economic sectors will have different reaction times and the magnitude of their withdrawal may vary.”

But for those now fleeing trade war tariffs, they may not have the luxury of long-term planning that companies like Samsung and Lotte have had, said Gilholm from Control Risks.

“Long term, I think the Korean firms that are moving out of China have had it easier because they haven’t had to do it under quite such pressured and scrutinised circumstances as a company which starts to move things now,” he said.

Source: SCMP

01/07/2019

Spotlight: Xi’s trip to Osaka drives multilateralism, G20 cooperation, global economy

JAPAN-OSAKA-XI JINPING-G20 SUMMIT

Chinese President Xi Jinping attends the 14th G20 summit held in Osaka, Japan, June 28, 2019. Xi called on G20 to join hands in forging high-quality global economy while addressing the 14th G20 summit held in the Japanese city of Osaka. (Xinhua/Xie Huanchi)

BEIJING, June 29 (xinhua) — Attending the summit of the Group of 20 (G20) major economies and holding meetings with his counterparts, Chinese President Xi Jinping paid a three-day visit to Osaka, Japan, which has proved a success with expanding consensus on the promotion of multilateralism and providing direction for both the G20 cooperation and global growth.

Chinese State Councilor and Foreign Minister Wang Yi made the remarks while noting that the 14th summit happened at a historic moment when chaos and uncertainties have brought the world to a critical crossroads, and that Xi’s tight diplomatic agenda marked China’s continuous efforts as a reliable and responsible major country to help with broad visions and workable solutions.

Envisioning a new type of international relations and a community with a shared future for mankind, Xi’s efforts were focused on promoting multilateralism, partnerships, mutually beneficial cooperation and joint development, which helped expand consensus, push forward cooperation, and increase confidence in global peace and development.

According to Wang, Xi’s speech at the G20 summit struck an extensive chord and China’s ideas received widespread support. In addition, the world is happy to see that Xi’s meetings with other leaders will help shape healthier major-country relations, that new opportunities will come with the new measures Xi announced for China’s further opening-up, and that Xi and U.S. President Donald Trump agreed that the two countries will restart trade talks.

WIDE CONSENSUS

During his trip to Osaka, by upholding multilateralism, the Chinese president guided the dialogue and discussions towards the direction of cooperation and inclusiveness in order to achieve win-win results.

Xi made four overseas trips since the beginning of June, setting a record for the history of the diplomacy of The People’s Republic of China, Wang said.

Xi put forward a four-point proposal in his speech at the summit, including exploring driving force for growth, improving global governance, removing development bottlenecks, and properly addressing differences.

Those proposals have outlined the direction to tackle the challenges facing the world economy, which is conducive to creating greater space for the global development and a better environment for international cooperation, Wang said.

With joint efforts, the G20 summit in Osaka has voiced support for multilateralism. It has been proven that upholding and practicing multilateralism is not just China’s choice, but a consensus and wish of the majority of countries in the world, Wang said.

Besides, on the sidelines of the G20 summit, Xi also attended a meeting of BRICS nations, China-Africa leaders’ meeting, China-Russia-India leaders’ meeting, and held a series of bilateral meetings.

During the meetings, Xi urged more efforts to promote global governance based on the principle of extensive consultation, joint contribution and shared benefits, safeguard the international system with the UN at the core and the international law as the foundation, preserve the multilateral trade regime with the World Trade Organization at the core and the rules as the foundation, promote multilateralism and free trade, push forward the democratization of international relations, and build an open world economy, Wang said.

Meanwhile, Xi met with Japanese Prime Minister Shinzo Abe with the two sides reaching a 10-point consensus to promote the development of bilateral relations.

When meeting with UN Secretary-General Antonio Guterres, Xi said the more complex and severe the situation is, the more necessary it is to highlight the UN’s authority and role.

Xi also exchanged views and reached new consensus with South Korean President Moon Jae-in on bilateral relations and the Korean Peninsula situation. Xi’s meetings with his French counterpart, Emmanuel Macron, and German Chancellor Angela Merkel will promote the in-depth development of China-Europe relations, Wang said.

Xi also met with Trump, South African President Cyril Ramaphosa, Indonesian President Joko Widodo during his visit.

COOPERATION, NOT CONFRONTATION

As China’s legitimate and lawful rights have been undermined by a series of unilateral and protectionist measures by the United States, China has to adopt necessary counter-measures, Wang said.

During the summit, Xi, at the invitation of his U.S. counterpart, met with President Trump, stating China’s stance on fundamental issues concerning the development of bilateral relations, and conducting candid communication over major challenges facing the two sides, Wang added.

Summing up the experience and illumination in the past the four decades since China and the United States established diplomatic ties, Xi said the two sides both benefit from cooperation and lose in confrontation, and that cooperation and dialogue are better than friction and confrontation.

China and the United States have highly integrated interests and extensive cooperation areas, and they should not fall into so-called traps of conflict and confrontation, Xi said.

On issues involving China’s sovereignty and dignity, China must safeguard its core interests, Xi stressed.

For his part, Trump said he values the good relationship with Xi and that it is of great significance for the two heads of state to maintain close contacts.

The U.S. side attaches importance to its relations with China, and harbors no hostility towards China, Trump said, adding that his country is willing to cooperate with China and that he hopes for better relations between the two countries.

During the meeting, Xi also reiterated the position of the Chinese government on the Taiwan issue, urging the United States to stick to the one-China principle and the three China-U.S. joint communiques.

The U.S. stance has not changed and it continues to pursue the one-China policy, Trump said.

When talking about the China-U.S. trade frictions, Xi emphasized that the essence of the China-U.S. economic and trade cooperation is mutual benefit and win-win, and that the two sides will eventually have to find a mutually acceptable solution to their differences through equal dialogue and consultation. Trump agreed with Xi in this regard.

Trump said the differences in such fields as economy and trade between the two sides should be properly settled, and that the United States will not add new tariffs on imports from China.

The most important consensus reached between the two heads of state is that China and the United States agree to continue to advance a China-U.S. relationship featuring coordination, cooperation and stability, Wang said.

They announced the restart of economic and trade consultations between their countries on the basis of equality and mutual respect. These significant consensuses send positive signals to the international community and global markets, Wang said.

As long as the two sides follow the principles and consensus established by the two heads of state, firmly grasp the correct direction of bilateral ties, expand cooperation based on mutual benefit, manage differences on the basis of mutual respect, and properly settle all problems that exist or will likely happen in bilateral relations, there is hope of a long-term and steady growth of the China-U.S. ties, and of more benefit to the two peoples and the people from other parts of the world, Wang said.

BRIGHT FUTURE OF CHINA

During the G20 summit and meetings with other world leaders, Xi explained China’s development philosophy and cooperation proposals.

According to Wang, Xi stressed that China is confident in pursuing its path, handling its own affairs well, achieving peaceful co-existence and win-win cooperation with all other countries, which has enhanced their understanding and support for China.

Stressing that the Chinese economy is registering a stable performance with good momentum for growth, Xi introduced a clear attitude and the latest measures on opening up the Chinese market, expanding imports, improving business environment as well as advancing free trade arrangements and regional economic integration, Wang said.

The Chinese president said China is breaking new ground in opening-up and pressing ahead with high-quality development.

Meanwhile, during the summit, Xi invited all interested parties to join the Belt and Road Initiative, amplifying the positive effects of the second Belt and Road Forum for International Cooperation.

Xi also advocated international cooperation in innovation so as to benefit more countries and people, Wang said.

According to Wang, all sides are optimistic about China’s development prospects, and believe that the new round of reform and opening-up measures announced by Xi are sincere and substantial, and the high-quality cooperation on building the Belt and Road corresponds with the trend of the times and the aspirations of people in the world.

It has been once again proven that China is a driving force for world economic growth, promoting openness in the world and providing a major market for other countries to explore business opportunities, Wang said.

Source: Xinhua

29/06/2019

‘Back on track’: China and U.S. agree to restart trade talks

OSAKA (Reuters) – The United States and China agreed on Saturday to restart trade talks with Washington holding off new tariffs on Chinese exports, signalling a pause in the trade hostilities between the world’s two largest economies.

Commenting on a long-running dispute over China’s Huawei, President Donald Trump said U.S. firms would be able to sell components to the world’s biggest telecoms network gear maker where there was no national security problem.
The truce offered relief from a nearly year-long trade standoff in which the countries have slapped tariffs on billions of dollars of each other’s imports, disrupting global supply lines, roiling markets and dragging on global economic growth.
“We’re right back on track and we’ll see what happens,” Trump told reporters after an 80-minute meeting with Chinese President Xi Jinping on the sidelines of a summit of leaders of the Group of 20 (G20) major economies in Osaka, western Japan.
Trump said while he would not lift existing import tariffs, he would refrain from slapping new levies on an additional $300 billion worth of Chinese goods – which would have effectively extended tariffs to everything China exports to the America.
“We’re holding back on tariffs and they’re going to buy farm products,” he said at a news conference, without giving any details of China’s future agricultural product purchases.

“If we make a deal, it will be a very historic event.”

He gave no timeline for what he called a complex deal but said he was not in a rush. “I want to get it right.”

HUAWEI HOPES

On Huawei, Trump said the U.S. commerce department would meet in the next few days on whether to take it off a list of firms banned from buying components and technology from U.S. companies without government approval.

China welcomed the step.

“If the U.S. does what it says, then of course, we welcome it,” said Wang Xiaolong, the Chinese foreign ministry’s envoy for G20 affairs.

U.S. microchip makers also applauded the move.

“We are encouraged the talks are restarting and additional tariffs are on hold and we look forward to getting more detail on the president’s remarks on Huawei,” John Neuffer, president of the U.S. Semiconductor Association, said in a statement.

Huawei has come under mounting scrutiny for over a year, led by U.S. allegations that “back doors” in its routers, switches and other gear could allow China to spy on U.S. communications.

While the company has denied its products pose a security threat, the United States has pressed its allies to shun Huawei in their fifth generation, or 5G, networks and has also suggested it could be a factor in a trade deal.

RELIEF AND SCEPTICISM

In a lengthy statement on the two-way talks, China’s foreign ministry quoted Xi as telling Trump he hoped the United States could treat Chinese companies fairly.

On the issues of sovereignty and respect, China must safeguard its core interests, Xi was cited as saying.

“China is sincere about continuing negotiations with the United States … but negotiations should be equal and show mutual respect,” the foreign ministry quoted Xi as saying.

Trump had threatened to extend existing tariffs to almost all Chinese imports into the United States if the meeting brought no progress on wide-ranging U.S. demands for reforms.

Source: Reuters

Slideshow (4 Images)

Financial markets are likely to breathe a sigh of relief on news of the resumption in U.S.-China trade talks.

“Returning to negotiations is good news for the business community and breathes some much needed certainty into a slowly deteriorating relationship,” said Jacob Parker, a vice-president of China operations at the U.S.-China Business Council.

“Now comes the hard work of finding consensus on the most difficult issues in the relationship, but with a commitment from the top we’re hopeful this will put the two sides on a sustained path to resolution,” he said.

Some, however, warned the pause might not last.

“Even if a truce happens this weekend, a subsequent breakdown of talks followed by further escalation still seems likely,” Capital Economics said in a commentary on Friday.

The United States says China has been stealing American intellectual property for years, forces U.S. firms to share trade secrets as a condition for doing business in China, and subsidizes state-owned firms to dominate industries.

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China has said the United States is making unreasonable demands and must also make concessions.

Talks collapsed in May after Washington accused Beijing of reneging on reform pledges. Trump raised tariffs to 25% from 10% on $200 billion of Chinese goods, and China retaliated with levies on U.S. imports.

The U.S.-China feud had cast a pall over the two-day G20 gathering, with leaders pointing to the threat to global growth.

In their communique, the leaders warned of growing risks to the world economy but stopped short of denouncing protectionism, calling instead for a free, fair trade environment after talks some members described as difficult.

28/06/2019

Xi puts forward 3-point proposal on developing China-African relations

JAPAN-OSAKA-XI JINPING-CHINA-AFRICA-LEADERS-MEETING

Chinese President Xi Jinping chairs a China-Africa leaders’ meeting in Osaka, Japan, June 28, 2019. The meeting was also attended by South African President Cyril Ramaphosa, also former African co-chair of the Forum on China-Africa Cooperation (FOCAC); Egyptian President Abdel-Fattah al-Sisi, also rotating chair of the African Union; Senegalese President Macky Sall, current African co-chair of the FOCAC; and UN Secretary-General Antonio Guterres. (Xinhua/Pang Xinglei)

OSAKA, June 28 (Xinhua) — Chinese President Xi Jinping put forward here Friday a three-point proposal on building a closer community with a shared future between China and African countries.

On the sidelines of the Group of 20 summit in the Japanese city of Osaka, Xi chaired a China-Africa leaders’ meeting, which was also attended by South African President Cyril Ramaphosa, also former African co-chair of the Forum on China-Africa Cooperation (FOCAC); Egyptian President Abdel-Fattah al-Sisi, also rotating chair of the African Union; Senegalese President Macky Sall, current African co-chair of the FOCAC; and UN Secretary-General Antonio Guterres.

Source: Xinhua

28/06/2019

Commentary: Xi-Trump meeting an opportunity to bring talks back on track

BEIJING, June 28 (Xinhua) — Chinese President Xi Jinping is set to sit down with his U.S. counterpart, Donald Trump, on the sidelines of the Group of 20 (G20) summit in the Japanese city of Osaka, igniting a flicker of hope to bring the China-U.S. trade talks back on track.

The meeting arrives at a time when Washington’s trade offensive against China is not only poisoning one of the world’s most important bilateral relationships, but also risking throttling the already frail global economic recovery. Its significance is thus too great to miss.

When the two presidents met each other at last year’s G20 summit in Argentina’s capital city of Buenos Aires, they reached an important consensus to pause the trade confrontation and resume talks. Since then, negotiating teams on both sides have held seven rounds of consultations in search for an early settlement.

However, China’s utmost sincerity demonstrated over the months seems to have only prompted some trade hawks in Washington to press for their luck.

Following its failure to coerce Beijing into swallowing a deal with unequal terms, a disappointed and enraged Washington returned to its tactic of tariffs by raising additional levies on 200 billion U.S. dollars’ worth of Chinese goods from 10 percent to 25 percent, and threatening a new round of tariff hikes on another 300 billion dollars’ worth of goods.

Some ultra-conservative U.S. decision-makers, who have for many years seen in China a “threat” to Washington’s sole superpower status, have tried to extend the trade campaign into a broader operation to shut China out and contain its rise.

As a result, Washington is cracking down on Chinese high-tech companies including telecom equipment provider Huawei, while many Chinese students seeking to study in the United States are facing more restrictions like months-long visa delay.

Thanks to Washington’s relentless efforts, the two countries, which should have celebrated the 40th anniversary of their diplomatic ties this year, are seeing their relations slipping down the path to a possible all-out confrontation.

Despite Washington’s “in-your-face” style of maximum pressure strategy, China has been steadfastly consistent in its position. It has always been committed to settling trade frictions via dialogue and consultation and safeguarding its legitimate and sovereign rights at the same time.

Beijing, as it has on various occasions reaffirmed, does not want a trade war, but is not afraid of one, and will fight to the end if necessary.

Last week, Xi had a telephone conversation with Trump at the request of the U.S. leader, saying that he stands ready to meet Trump in Osaka to exchange views on fundamental issues concerning the development of China-U.S. relations.

Xi’s words reflect an alarming fact that the two countries are facing a challenge to the fundamentals of their relationship. The upcoming Xi-Trump meeting provides a unique opportunity for the two sides to find new common ground in easing trade tensions and bring the troubled ties back onto the right track.

If the two sides can reach an agreement to pick up the talks, the United States needs to place itself on an equal footing with China, and accommodate China’s legitimate concerns on the basis of mutual respect, equality and mutual benefit in order to seek win-win results in the future negotiations.

Just one day ahead of the Osaka G20 summit, some U.S. politician again threatened to slap punitive levies on imported Chinese goods. Such cheap tactics to bring China down to its knees with pressure will get nowhere.

For more than a year, Washington’s spoils in its tariff campaign have so far only seen rising daily costs for ordinary American consumers, growing rejections from U.S. farmers, industry workers and business leaders, roller-coaster rides in U.S. stock markets, as well as China’s increasingly stronger determination to defend its rights.

The trade fight between the world’s two largest economies has already hit hard the global market and dented investors’ confidence worldwide. The latest World Trade Outlook Indicator reading of 96.3 remains at the weakest level since 2010, signaling continued falling trade growth in the first half of 2019, according to the World Trade Organization.

Trade wars produce no winner. In his latest telephone talk with Xi, Trump said he believes the entire world hopes to see the United States and China reach an agreement. To get an agreement, Washington’s hardliners need to know that Beijing will neither surrender to their pressure, nor permit Washington to deprive Chinese people of their rights to pursue a better life.

And for the agreement to be sustainable, Washington’s China policy should be rational. A rising China is not seeking to grab global hegemony. It will continue to work with nations around the world, including the United States, to boost common development and build a community with a shared future for mankind.

The past 40 years of China-U.S. relationship have proved that when the two countries work together, they both win and the world gains as well. But when they fight each other, all are poised to lose.

China and the United States, as two major economies in the international community, bear special responsibility for the wider world.

Therefore, the two sides, just as what Xi said during his meeting with The Elders delegation this April in Beijing, need to manage their differences, expand cooperation and jointly promote bilateral relations based on coordination, cooperation and stability so as to provide more stable and expectable factors to the world.

Source: Xinhua

23/06/2019

China confirms President Xi Jinping’s three-day trip to Japan this week

  • Leader will arrive on Thursday, ahead of G20 summit in Osaka, foreign ministry says
  • He is expected to hold talks with Donald Trump on sidelines of meeting
China has confirmed that President Xi Jinping will travel to japan this week. Photo: AFP
China has confirmed that President Xi Jinping will travel to japan this week. Photo: AFP

China on Sunday confirmed that President Xi Jinping will attend the G20 summit in Osaka this week.

Xi will spend three days in Japan – his first visit to the country since coming to power in 2013 – the foreign ministry said.

He will travel to Japan on Thursday and is expected to meet his US counterpart Donald Trump on the sidelines of the meeting of leading and emerging economies, which runs from Friday to Saturday, it said.

It is possible the pair will hold formal negotiations over dinner, as they did in Argentina in December at the last G20 summit.
Presidents Xi and Trump are expected to hold talks over dinner, as they did in Argentina in December. Photo: Kyodo
Presidents Xi and Trump are expected to hold talks over dinner, as they did in Argentina in December. Photo: Kyodo

On Saturday, People’s Daily, the mouthpiece of China’s Communist Party said in a commentary that the trade war between China and the US could be resolved only through “equal conversation”.

“For the talks to resume … the key is to address the primary concern of the other side. The tariffs already in place must be revoked,” it said.

Trade deal ‘within reach if Xi and Trump show courage’

Meanwhile, state broadcaster CCTV on Friday criticised Washington’s decision to add five Chinese companies to its list of entities considered a threat to national security.

“The US made this move to put more pressure China ahead of the trade talks,” it said, adding that it might produce a result opposite to the one desired by Washington.

The report came after the US commerce department said it had added five Chinese firms that manufacture supercomputers and their components to the entity list, restricting their ability to do business with the US.

The blacklist effectively bars American firms from selling technology to the Chinese organisations without government approval. Last month, the commerce ministry added telecoms giant 

Huawei

to the list, heightening tensions with Beijing.

Xi told Trump on Tuesday he was willing to meet in Japan. Photo: AP
Xi told Trump on Tuesday he was willing to meet in Japan. Photo: AP

In a telephone conversation on Tuesday, Xi told Trump he was willing to meet in Japan and said he “agreed that the two countries’ trade delegations should keep communications going to solve their differences”, CCTV reported.

Kong Xuanyou, China’s new envoy to Japan, said on Friday that he hoped Xi would make an official visit to the country soon, ideally during the cherry blossom season next spring. The foreign ministry statement made no mention of such a visit.

Source: SCMP

19/06/2019

Xi Jinping and Donald Trump to broaden agenda beyond US-China trade war for meeting at G20 summit in Osaka

  • Osaka summit intended to pull bilateral ties away from brinkmanship that has dragged relations to lowest point in decades
  • Trade war just one of the items on the agenda, analysts say, along with principles of relationship, North Korea, and Huawei
The last time the US President Donald Trump and China’s President Xi Jinping met was in Buenos Aires in December. Analysts are confident that their meeting at the G20 Summit in Osaka this month can yield a freeze in the escalation of the trade war. Photo: Reuters
The last time the US President Donald Trump and China’s President Xi Jinping met was in Buenos Aires in December. Analysts are confident that their meeting at the G20 Summit in Osaka this month can yield a freeze in the escalation of the trade war. Photo: Reuters
When Chinese President Xi Jinping meets his US counterpart Donald Trump in Japan at the end of the month they are expected to discuss a broad range of issues, including the trade war, in an effort to stop the relationship from tilting towards sustained confrontation, analysts said.
Neither side has provided an agenda for the meeting on the sidelines of the G20 leaders summit in Osaka, despite confirmation coming from both sides that it was to take place, after weeks of speculation.
A summary of Tuesday’s phone conversation between Xi and Trump published by Xinhua, however, implied that the leaders would cover more strategic issues, leaving the nuts and bolts of a trade deal to their negotiating teams. Meanwhile, China’s foreign ministry spokesperson Lu Kang said at a regular press conference on Wednesday that the two leaders would discuss the overall direction of bilateral relations, but he did not elaborate further.
Both China and the United States have confirmed that their leaders will meet in Osaka at the end of June, at a time when US-China relations have nosedived. Photo: AP
Both China and the United States have confirmed that their leaders will meet in Osaka at the end of June, at a time when US-China relations have nosedived. Photo: AP
Wei Jianguo

, a former vice-minister at China’s Ministry of Commerce, predicted that Beijing would use the meeting to make clear a few principles regarding the bilateral relationship.

“It’s inevitable [for China and the US] to have problems in certain fields, but both sides should resolve the problems through dialogue on an equal footing rather than opting for a trade war, a tech war, or a financial war,” said Wei, now a vice-chair at the state-backed China Centre for International Economic Exchanges, a think tank.
He added that China would try to convince the US that it had no intention of challenging its global hegemony, but that China’s own “core interests”, including its sovereignty, territorial rights and room to develop, “must be respected”.

A government official in Beijing, who declined to be identified, said China was pinning its hopes on the leaders’ summit to ease general tensions between Beijing and Washington, even though the chances of the leaders reaching any concrete agreements in Osaka was small.

“Without a leaders’ summit, it would be difficult to push ahead the work [to reach agreements] at the ministerial or lower levels,” the source said.

Wei Jianguo, a former vice-minister at China’s Ministry of Commerce, predicted that Beijing would use the meeting to make clear a few principles regarding the bilateral relationship. Photo: Handout
Wei Jianguo, a former vice-minister at China’s Ministry of Commerce, predicted that Beijing would use the meeting to make clear a few principles regarding the bilateral relationship. Photo: Handout

The last summit between Trump and Xi in Buenos Aires in December resulted in a tariff truce and negotiations that continued until early-May. But the talks failed to achieve a deal to end the conflict, resulting in the US more than doubling tariffs on US$200 billion of Chinese imports and threatening tariffs on almost all remaining Chinese imports, valued at US$300 billion by the US government.

Tuesday’s telephone call, in which 

Xi told Trump

he was willing to exchange views with Trump on “the fundamental issues” affecting China-US relations, came at a low point in recent China-US relations.

The tariff increase followed the collapse of trade talks in early-May, while hostile rhetoric has spread into the political and military spheres. The US labelled China a “strategic competitor” and accused Beijing of conducting sustained espionage to impede US’s national security, while China blamed the US for trying to thwart China’s development by targeting Huawei and infringing on China’s sovereignty over Taiwan and Hong Kong.
Zhou Rong, a senior fellow from the Chongyang Institute for Financial Studies at the Renmin University of China, said the two leaders have a long list of issues to talk about this time in addition to trade, including Taiwan, the South China Sea, as well as the treatment of Chinese companies in the US. China can offer to help on some issues but “the US should not force China to swallow bitter fruit it cannot digest”, Zhou said.
Ni Feng, a specialist in Sino-US relations at the Chinese Academy of Social Sciences, said they would discuss the “overall direction” of their bilateral relationship, including where the two nations could engage in “competition and cooperation”.
He added that North Korea may be on the agenda because “China and the US share the same goal of the denuclearisation of the Korean peninsula.” 
Xi is set to start

 a two-day state visit to Pyongyang on Thursday.

Another source in the Chinese government, who wished to remain anonymous, said Xi was very likely to bring up the US’ blacklisting of Huawei, China’s leading technology firm. Washington has effectively banned American companies from providing key components to the Shenzhen-based company.
Meng Wanzhou, Huawei’s chief financial officer and the daughter of founder Ren Zhengfei, is currently on bail in Canada awaiting extradition to the US to face charges that both she and Huawei violated US sanctions on Iran.
During Tuesday’s call, Xi told Trump that China “hopes the US side can treat Chinese businesses fairly”, Xinhua reported.
China's President Xi Jinping waits for the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. Photo: AP
China’s President Xi Jinping waits for the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. Photo: AP

At the same time, Trump and Xi agreed that the two countries’ trade negotiators would start to talk again before the meeting in Japan, raising prospects for a second truce in the trade war, or even a deal to end the conflict.

Matthew Goodman, a researcher at the Centre for Strategic and International Studies in Washington, wrote in a note that a Trump-Xi deal on trade-in Osaka “is certainly possible”.

The most likely outcome is similar to the one reached in Buenos Aires in December last year, when Trump and Xi “agreed to a temporary truce while trade negotiators work to hammer out a deal”, Goodman wrote. “This would postpone the worst effects of the current escalation but is unlikely to solve the deepening and dangerous rift in US-China relations”.

The South China Morning Post previously reported that the Osaka summit meeting, which is likely to take place on Saturday June 29, could also be a sit-down dinner between Trump, Xi and their top economic and security aides, as occurred in Buenos Aires. Trump tweeted Tuesday night that he would have an “extended” meeting with Xi in Japan.

Source: SCMP

17/06/2019

China quiet on Xi Jinping’s G20 meeting and trade talk demands in face of fiery Donald Trump rhetoric

  • It is expected the two leaders will meet in Japan at the end of June
  • Analysts see an increasing caution from China amid low expectations of any deal
Chinese President Xi Jinping and US President Donald Trump last met in Argentina in December on the sidelines of the G20 summit. Photo: AP
Chinese President Xi Jinping and US President Donald Trump last met in Argentina in December on the sidelines of the G20 summit. Photo: AP
China’s relative silence in response to comments by US President Donald Trump in relation to the trade war is due to Beijing redoubling its efforts to take a cautious approach ahead of future talks amid “low expectations” of a quick deal after negotiations collapsed last month, analysts said.
Trump has openly threatened to levy tariffs on additional Chinese products if a meeting with counterpart Xi Jinping does not take place at the G20 summit in Japan at the end of the month, while also urging Beijing to return to talks based on terms negotiated earlier in the year.
“It’s me right now that’s holding up the deal,” Trump said on Tuesday. “And we’re going to either do a great deal with China or we’re not going to do a deal at all.”
China, though, has remained tight-lipped on both a meeting and also the prospects of future talks, with the foreign ministry yet to confirm whether there will be a summit between 
Trump and Xi

in Osaka. The South China Morning Post reported this week that the two leaders could share a more formal dinner, similar to the scene witnessed on the sidelines of the G20 summit in Argentina in December.

That meeting produced a ceasefire and more than five months of negotiations until early May when the talks broke down and the US more than doubled tariffs on US$200 billion in Chinese imports to 25 per cent.
Shi Yinhong, an international relations expert from Renmin University of China, said China had very low expectations ahead of the G20 summit in Japan due to the current level of strained bilateral relations.

Trump’s open threats had put Xi “in a very disadvantageous position”, as any agreement “would be seen as being weak or surrendering to US pressure”, he said.

Instead, the two sides were likely to reach “piecemeal deals” on smaller issues such as people-to-people exchanges and relaxation of visa restrictions, according to Shi, which in turn might help to build a friendlier atmosphere to pave the way for more substantive talks in the future.

It’s me right now that’s holding up the deal. And we’re going to either do a great deal with China or we’re not going to do a deal at all: Donald Trump

China’s state-controlled media outlets have maintained their criticism of the US for starting the trade war, although editorials carried by Xinhua and the People’s Daily have not given concrete information about Beijing’s demands, instead, in its latest editorial, Xinhua urged “US politicians to treat China’s rise with reasonable sense”.
Geng Shuang, a foreign ministry spokesman, said last week that China was aware of hopes emerging from the US side of a meeting between Trump and Xi in Osaka, but that China had no information to disclose on that subject, reiterating government statements from previous days.
Amid a war of words between Beijing and Washington over which side is to blame for the stalled trade talks, both sides have showcased their willingness to talk as long as the conditions are appropriate. Commerce vice-minister Wang Shouwen said at the start of June that China “is always sincere” about negotiating with the US, but the talks must be conducted with mutual respect.
“Otherwise, the negotiation would be meaningless. Even if there’s negotiation, there won’t be an enforceable and sustainable agreement,” Wang said.
Xi said at an economic forum in Russia last week that he did not want to see a decoupling of the US and China and believed that “my friend” Trump did not want that either.
“Trump’s stance that he is unlikely to make any concessions is very clear. So, China should be very cautious when arranging a bilateral meeting with him,” said Liu Weidong, a China-US affairs expert from the Chinese Academy of Social Sciences, a state think tank
Scott Kennedy, a senior adviser at the Centre for Strategic and International Studies in Washington, said Trump and Xi may reach “some sort of truce” as they did in Buenos Aires so that “both sides agree to put on hold their various actions against the other and not further escalate”, but added that the chance was small.
Source: SCMP
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