Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
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The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
A government task force has estimated a US$5 billion loss if Chinese students – angered and frustrated by the ban – cannot enrol for university
The tourism sector is also likely to be hit by restrictions on travel from the mainland as Chinese visitors spend about U$8 billion in Australia each year
Some 150,000 Chinese nationals are enrolled at Australian universities, making up around 11 per cent of the student population. Photo: Shutterstock
Abbey Shi knows first hand the anger and frustration felt by Chinese students left stranded by the Australian government’s decision to ban travel from the mainland in response to the coronavirus outbreak.
Shi, general secretary of the Students’ Representative Council at the University of Sydney, is in contact with more than 2,000 Chinese students who went home for the Lunar New Year holiday and now cannot return to Australia with just weeks to go until the start of the new academic year.
“There is a lot of confusion about the ban and anger towards the government,” said Shi, an international student from Shanghai. Currently in Australia, she is sharing information with the stranded students via WeChat.
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“The education sector in Australia is being commercialised and students are being treated like cash cows,” she said. “Universities don’t care about our affected career path, life, tenancy issues, our pets at home.”
Prime Minister Scott Morrison on Saturday announced that non-citizens – excluding permanent residents and their immediate family members – who arrived from or passed through mainland China within the previous 14 days would be denied entry to Australia as part of efforts to halt the spread of the coronavirus, which was first detected in December in the Chinese city of Wuhan.
Other countries including the United States, Singapore and the Philippines have introduced similar travel restrictions in response to the outbreak, which has sickened more than 19,000 people in at least 26 countries and territories outside mainland China and claimed 425 lives.
The travel ban, which is due to be reviewed on February 15, has upended the plans of numerous Chinese students who were due to begin or return to their studies from late February following the summer break.
Tony Yan, a mathematics undergraduate at Australian National University (ANU), said he had been left out of pocket for several weeks’ rent after being stranded in his home province of Jiangsu, but hoped he could return before classes started on February 24.
“I think the Australian government should have given a few days earlier notice,” Yan said. “I haven’t paid the tuition yet, many others haven’t as well.”
About 150,000 Chinese nationals are enrolled at Australian universities, making up around 11 per cent of the student population – a far greater proportion than in Britain and the United States, which came in at 6 per cent and 2 per cent respectively, in a 2017 report from an Australian think tank.
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ANU Vice-Chancellor Brian Schmidt on Saturday described the travel ban as “disappointing”, pledging that the university would be “generous and flexible in supporting our students” through the coming weeks.
Monash University in Melbourne has delayed the start of its academic year, while other universities are exploring options such as online tuition and intensive summer courses.
Australian universities, some of which rely on Chinese students for nearly one-quarter of their revenue, are bracing to take a major financial hit due to the ban.
Phil Honeywood, the head of a government task force initially set up to manage the reputation of Australia’s international education sector in the wake of the country’s bush fires crisis, on Sunday warned the ban could cost universities A$8 billion (US$5.34 billion) if Chinese students could not enrol for the first semester of the year.
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Education minister Dan Tehan on Monday met with peak body Universities Australia to discuss ways to minimise fallout for the sector.
“Australia will remain an attractive study destination for Chinese students, but it may take several years for Chinese student numbers to recover,” said Salvatore Babones, associate professor at the University of Sydney and adjunct scholar at the Centre for Independent Studies. “Students who are already in the middle of a degree are likely to return at the first possible opportunity, even at the cost of missing one semester, but students who have not yet started may make other plans.”
But ANU tertiary education expert Andrew Norton said there remained too many unknowns, including the number of Chinese students stranded abroad, to gauge the impact of the ban.
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“This travel ban is a short-term policy to minimise the risk of disease spreading, which would be a more serious problem than a disruption to university timetables,” he said. “One of Australia’s major [education] competitors – the US – has a similar policy, and due to travel restrictions within China and the cancelling of commercial flights to and from China Australia’s competitors are unlikely to be able to take advantage.”
Norton noted that the sector had weathered previous outbreaks such as the 2003 outbreak of severe acute respiratory syndrome (Sars), and “although there were sometimes short-term dips in numbers, none of them have changed the long-term trend towards growth”.
The ban has also sent jitters throughout the tourism industry, which relies on Chinese visitors for a quarter of international spending. Nearly 1.5 million
visited Australia in 2018-19, Australian Bureau of Statistics records show, accounting for about one in eight arrivals.
Nearly 1.5 million Chinese nationals visited Australia in 2018-19, according to Australian Bureau of Statistics records. Photo: SCMP / Alkira Reinfrank
With Chinese tourists spending about A$12 billion (US$8 billion) in Australia each year, according to Tourism Research Australia, every month the travel ban remains in place could amount to billion-dollar losses for the sector.
Tourism Tropical North Queensland on Monday said the outbreak had already cost operators for Cairns and the Great Barrier Reef 25,000 direct bookings worth A$10 million. Chief executive Mark Olsen said the situation constituted a crisis for the industry that called for “unprecedented action” by the government.
David Beirman, senior lecturer in tourism at the University of Technology Sydney, said the ban was especially damaging for the industry as it came on the heels of devastating bush fires that had kept visitors away.
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“There is no doubt that the coronavirus outbreak following on so closely to the bush fires will combine to hit international tourism to Australia very hard,” Beirman said. “Later this month the Australian Bureau of Statistics will reveal the December 2019 tourism figures, which are expected to show at best a 25 per cent downturn in international visitor arrivals compared to December 2018. January 2020 is likely to be far worse as the impact of coronavirus will certainly be a factor.”
Others have raised concerns about the impact of the travel restrictions on public attitudes toward Chinese and Chinese-Australians, warning they could stoke latent prejudices.
“This is an overreaction from the Australian government, and in many ways it feels like it is a form of racial targeting,” said Erin Chew, national convenor of the Asian Australian Alliance. “When previous viruses happened such as mad cow disease or the swine flu, Australia didn’t ban non-citizens from Britain and the US. Nor was the blame placed on the people in [those countries].
“Since the coronavirus outbreak it has been coined that this virus is the fault of Chinese people, not just in mainland China, but really all over the world.”
(Reuters) – Beijing threatened to retaliate against Czech companies with operations in China if a senior Czech lawmaker went ahead with a planned visit to Taiwan, according to a diplomatic letter seen by Reuters.
The Jan. 10 letter, which was sent by China’s embassy in Prague to the Czech president’s office, suggested that Czech companies operating in mainland China, such as Volkswagen (VOWG_p.DE) subsidiary Skoda Auto or lender Home Credit Group, would suffer if Senate speaker Jaroslav Kubera visited the self-ruled island.
Kubera died unexpectedly on Jan. 20, before his trip had been due to take place, but the letter, written in Czech, reveals how explicit Beijing was about the possible consequences if the visit had gone ahead.
“Czech companies whose representatives visit Taiwan with Chairman Kubera will not be welcome in China or with the Chinese people,” the letter said.
“Czech companies who have economic interests in China will have to pay for the visit to Taiwan by Chairman Kubera,” the letter added, noting that “China is the largest foreign market for many Czech companies like Skoda Auto, Home Credit Group, Klaviry Petrof and others”.
Chinese officials in Beijing did not immediately respond to a request for comment. The Czech president’s spokesman confirmed the office had received the letter but did not comment on its content.
The Foreign Ministry in Taiwan, which Beijing considers a breakaway province, criticised China’s warning to Prague.
“China’s business pressure on the Czech Republic proves that ‘one belt one road’ is a predatory policy tool, bringing only counter-effects to the global business order,” Foreign Ministry spokeswoman Joanne Ou said.
‘SERIOUS BREACH’
As speaker of the Czech Republic’s Senate, Kubera was the country’s second-most senior official after President Milos Zeman.
Zeman and Prime Minister Andrej Babis had expressed concern that Kubera’s plans to visit Taiwan would lead China to retaliate against the Central European country’s business community.
The Senate’s office said Kubera had been aware of the letter and its content after receiving a copy at a regular meeting of top Czech foreign policy officials.
The Chinese letter warns that Kubera’s trip would be seen as a “serious breach” of the so-called one China policy on Taiwan, under which Beijing insists it is the sole representative of China.
Babis’s government, which has the main say on foreign policy, has said repeatedly it adheres to the one China policy.
However, diplomatic ties cooled last year when city authorities in Prague showed support for Tibet and demanded changes to an intercity partnership agreement with Beijing over a reference to China’s policy on Taiwan.
The agreement was eventually cancelled, and Prague instead signed a cooperation deal with Taiwan’s Taipei, further infuriating Beijing.
Another upset to bilateral relations took place in December 2018 when the Czech cyber-security watchdog warned about the risks of using network technology provided by Chinese telecoms equipment makers Huawei and ZTE.
A Home Credit spokesman said he had not been aware of the letter, while Skoda could not be reached immediately for comment.
Czech senators elected a replacement for Kubera as speaker on Wednesday.
Image caption A play staged at Shaheen School has led to the arrest of a parent and a teacher
An Indian school play involving nine to 12-year-olds became the subject of national attention after it landed a young mother and a teacher in jail. BBC Telugu’s Deepthi Bathini reports.
“I’m not sure how I ended up here,” says 26-year-old Nazbunnisa, a single mother who did not give her last name and who works as a domestic help.
She was arrested on 30 January, along with Farida Begum, a teacher at her daughter’s school. The charge against them: sedition, which the women, both Muslim, deny.
They spoke to the BBC in a prison official’s office at Bidar district jail in the southern state of Karnataka. Both were on the verge of tears – they said they are trying to be “strong”, but their lives have suddenly turned “upside down”.
Their bail hearing is scheduled for Tuesday. Their lawyer says the charge of sedition is being misused.
Image copyright GETTY IMAGESImage caption The citizenship law has sparked huge protests
The two women are accused of spreading “false information” and of “spreading fear among [the] Muslim community” and of using children to insult India’s Prime Minister, Narendra Modi.
Their ordeal began with a play put on by the students and staff at Shaheen School in Bidar, where Ms Nazbunnisa’s daughter studies and Farida Begum, 52, teaches.
The play was about a controversial new citizenship law, which has polarised India since it was passed in December by the governing Hindu nationalist Bharatiya Janata Party (BJP).
The Citizenship Amendment Act (CAA), offers amnesty to non-Muslim immigrants from Pakistan, Bangladesh and Afghanistan. It sparked fear among India’s 200 million-plus Muslims as it came in the wake of the government’s plans to introduce a National Register of Citizens (or NRC) based on those who can prove their ancestors were Indian citizens.
Authorities are yet to clarify what documents would be needed to prove citizenship, but taken together, the measures have spurred massive protests – critics say the government is marginalising Muslims while offering a path to citizenship for people of other religious communities who fail to make it on to the NRC.
The governing BJP denies these charges, and insists India’s Muslims have nothing to worry about.
So, given the contentious subject, after one of the parents streamed the school play live on Facebook, the recording quickly went viral. Local resident Neelesh Rakshal was among those who watched it.
Mr Rakshal, who describes himself as a social activist, says he became furious over a scene where a man approaches an elderly woman and tells her that Narendra Modi wants Muslims to produce documents proving their Indian citizenship and that of their ancestors, and if they fail to do so, they will be asked to leave the country.
Image caption Mr Rakshal says the play “spreads hatred”
The woman responds that she has been in India for generations and would have to dig up the graves of her ancestors to look for documents. She then says a “boy who was selling tea”, a reference to Mr Modi who has said he used to sell tea as a teenager, is now demanding that she show him her documents.
“I will ask him for his documents and if he doesn’t show them to me, I will hit him with slippers,” she adds.
Mr Rakshal says he immediately registered a police complaint against the school for “using children in a school play to abuse the prime minister and also for spreading hatred”.
The complaint named the school management and the parent who streamed the play. While several members of the school management and the president of the school have also been charged with sedition, police told the court they are still looking for them.
“We do not know for what reason sedition charges have been invoked against the school. It is beyond the imagination of any reasonable person. We will fight it in court,” the school’s CEO, Thouseef Madikeri, says.
Image copyright GETTY IMAGESImage caption School officials allege that they are being targeted because most of the students are Muslim
Police also questioned students – videos and screen grabs of CCTV footage showing them speaking to students were shared widely on social media, prompting criticism.
Mr Madikeri alleges that on one occasion, police in uniform questioned students, with no child welfare officials present – an accusation denied by police superintendent DL Nagesh.
“The students were questioned five times. It’s mental harassment to students and this may have an impact on them in [the] long run,” Mr Madikeri says.
The Karnataka State Commission for Protection of Child Rights has asked police to explain why they questioned students so many times. Police say it was because not all the students were available at the same time.
Mr Madikeri told the BBC it was the questioning of students that led to the arrest of Farida Begum and Ms Nazbunnisa.
One parent whose child was questioned says she is now scared of going to school.
“My daughter told me police repeatedly asked her to identify the teachers and others who might have taught them the [play’s] dialogues,” he said.
“I do not understand what was wrong in the play. Children have been seeing what has been happening around the country. They picked up the dialogues from social media.”
Image caption Farida Begum’s husband is worried about what will happen
Ms Nazbunnisa is also perplexed as to why she was arrested.
“My daughter was rehearsing for the play at home,” she says. “But I did not know what it was about, or what this controversy about CAA or NRC is about. I did not even go to see her play.”
Ms Nazbunnisa has met her daughter only once since she was jailed: “It was just for a few minutes, and even then only through a window. I held back my tears. I did not want to scare her further.”
The girl is staying with a friends of the family – they told the BBC she is having nightmares and often wakes up crying for her mother.
“She has been pleading that her mother not be punished for her mistake. She is sorry for what has happened,” one of them says.
Farida Begum, who suffers from high blood pressure, says she is “scared of what the future holds”. Her husband, Mirza Baig, says he fears that his wife being in jail will affect his daughter’s marriage prospects.
LONDON (Reuters) – Prime Minister Boris Johnson on Tuesday granted China’s Huawei a limited role in Britain’s 5G mobile network, resisting U.S. pressure to exclude the company from next generation communications on fears China could use it to steal secrets.
In the biggest test of his post-Brexit foreign policy to date, Johnson ruled that “high-risk vendors” would be allowed into the “non-sensitive” parts of 5G networks, but their involvement would be capped at 35%.
They would be excluded from the sensitive core of networks, where data is processed, and banned from all critical networks and sensitive locations such as nuclear sites and military bases, the government said.
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The decision will dismay President Donald Trump’s administration which fears China could use Huawei to steal secrets and which has warned that if London gives Huawei a role then it could scale back intelligence cooperation.
“This is a UK-specific solution for UK-specific reasons and the decision deals with the challenges we face right now,” Communications Secretary Nicky Morgan said following a meeting of the National Security Council chaired by Johnson.
Huawei was not mentioned by name in the British government’s statement, but British cyber security officials said they had always treated the company as a “high risk” vendor.
The White House and U.S. state department did not immediately respond for a request to comment.
Huawei, though, was happy.
“Huawei is reassured by the UK government’s confirmation that we can continue working with our customers to keep the 5G roll-out on track,” said Victor Zhang, Vice-President, Huawei.
“This evidence-based decision will result in a more advanced, more secure and more cost-effective telecoms infrastructure that is fit for the future. It gives the UK access to world-leading technology and ensures a competitive market.”
Sources told Reuters last week senior British officials had proposed granting Huawei a limited role in the 5G network – a “calculated compromise” which could be presented to Washington as a tough restriction but also accepted by British operators already using the company’s equipment.
Huawei, the world’s biggest producer of telecoms equipment, says the United States wants it blocked from Britain’s 5G network because no U.S. company can offer the same range of technology at a competitive price.
The United States has argued that as 5G technology evolves, the distinction between the “edge” and “core” will blur as data is processed throughout the network, making it difficult to contain any security risks.
Huawei’s equipment is already used by Britain’s biggest telecoms companies such as BT (BT.L) and Vodafone (VOD.L), but it has been largely deployed at the “edge” of the network and excluded in the “core” where data is processed.
NEW DELHI (Reuters) – Violent clashes erupted in Delhi between police and hundreds of university students on Friday over the enactment of a new citizenship law that critics say undermines India’s secular foundations.
The unrest has already led Japanese Prime Minister Shinzo Abe to cancel a planned visit to India from Sunday.
The new law offers a way to Indian citizenship for six minority religious groups from neighbouring Bangladesh, Pakistan and Afghanistan including Hindus and Christians, but not Muslims.
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Police fired tear gas and used baton charges to disperse scores of students demonstrating at Jamia Millia Islamia university in the heart of Delhi over the law.
Protesters attacked cars in the capital, and several people were injured and taken to hospital.
Zakir Riyaz, a PhD student in social work, said the new law made a mockery of India’s religious openness.
“It goes against the whole idea of a secular India,” he said, speaking by phone from the Holy Family Hospital in New Delhi where 15 of his fellow students were admitted after being injured in a police baton charge.
Police barricades were knocked down and streets were strewn with shoes and broken bricks. An official at the university dispensary said that more than 100 students had been brought in with injuries but all had been discharged.
Parvez Hashmi, a local politician who went to the protest site to speak to police, said about 50 students had been detained.
Students said it was meant to be a peaceful protest, with them trying to go from Jamia University to Parliament Street to show their opposition to the legislation. But police pushed them back, leading to clashes.
Critics of Prime Minister Narendra Modi’s government say it is promoting a Hindu-first agenda for India and that the citizenship law excluding Muslims showed a deep-seated bias against India’s 170 million Muslims.
Imran Chowdhury, a researcher, said “either give citizenship to refugees of all religions or none at all. The constitution is being tampered with in the name of religion.”
Modi’s ruling Bharatiya Janata Party denies any religious bias but says it is opposed to the appeasement of one community. It says the new law is meant to help minority groups facing persecution in the three nearby Muslim countries.
ABE CANCELS
The United Nations human rights office voiced concern that the new law is “fundamentally discriminatory in nature”, and called for it to be reviewed.
Two people were killed in India’s Assam state on Thursday when police opened fire on mobs torching buildings and attacking railway stations in protest at the new citizenship rules signed into law on Thursday.
Japan’s Prime Minister Shinzo Abe cancelled a trip to Assam for a summit with his Indian counterpart Narendra Modi that had been due to begin on Sunday.
Japan has stepped up infrastructure development work in Assam in recent years, which the two sides were expected to highlight during the summit. Abe had also planned to visit a memorial in the nearby state of Manipur where Japanese soldiers were killed in World War Two.
“With reference to the proposed visit of Japanese PM Abe Shinzo to India, both sides have decided to defer the visit to a mutually convenient date in the near future,” Indian foreign ministry spokesman Raveesh Kumar said in a tweet.
Japan’s Chief Cabinet Secretary Yoshihide Suga said both countries would decide on the appropriate timing for the visit although nothing has been decided yet.
A movement against immigrants from Bangladesh has raged in Assam for decades. Protesters there say granting Indian nationality to more people will further strain the state’s resources and lead to the marginalisation of indigenous communities.
The 39 people found dead in a refrigerated trailer in Essex were Chinese nationals, it is understood.
Police are continuing to question lorry driver Mo Robinson, 25, who was arrested on suspicion of murder.
Officers in Northern Ireland have raided two houses and the National Crime Agency said it was working to identify “organised crime groups who may have played a part”.
The trailer arrived in Purfleet on the River Thames from Zeebrugge in Belgium.
Ambulance staff discovered the bodies of the 38 adults and one teenager in the container at Waterglade Industrial Park in Grays just after 01:30 BST on Wednesday.
The lorry and trailer left the port at Purfleet shortly after 01:05.
Police said the tractor unit – the front part of the lorry – came from Northern Ireland and picked up the trailer from Purfleet.
Image copyright FACEBOOKImage caption The lorry driver has been named locally as Mo Robinson, from County Armagh
Councillor Paul Berry said the village of Laurelvale in County Armagh, where the Robinson family live, was in “complete shock”.
He said he had been in contact with Mr Robinson’s father, who had learned of his son’s arrest on Wednesday through social media.
“The local community is hoping that he [Mo Robinson] has been caught up innocently in this matter but that’s in the hands of Essex Police, and we will leave it in their professional hands to try to catch the perpetrators of this,” he said.
The Belgian Federal Public Prosecutor’s Office said it had opened a case which would focus on the organisers and others involved in the transport.
A spokesman said the container arrived in Zeebrugge at 14:29 on Tuesday and left the port later that afternoon before arriving in Purfleet in the early hours of Wednesday.
It was not clear when the victims were placed in the container or if this happened in Belgium, he said.
Media caption Essex lorry deaths: CCTV shows arrival at industrial park
St Peter and St Paul’s Church in Grays will be open for people to light candles and say prayers between 12:00 and 14:00.
A vigil is being held at 18:00 outside the Home Office to “call for urgent action to ensure safe passage” for people fleeing war and poverty.
The lorry was moved to a secure site at Tilbury Docks on Wednesday so the bodies could be “recovered while preserving the dignity of the victims”.
Essex Police initially suggested the lorry could be from Bulgaria, but later said officers believed it entered the UK from Belgium.
The force said formal identification of the 39 bodies “could be a lengthy process”.
A spokesman for the Bulgarian foreign affairs ministry said the truck was registered in the country under the name of a company owned by an Irish citizen.
He said it was “highly unlikely” the deceased were Bulgarians.
Shaun Sawyer, the National Police Chiefs Council lead for modern slavery and human trafficking, said while forces had prevented thousands of deaths, “tragically, for 39 people that didn’t work yesterday”.
He told BBC Radio 4’s Today programme even if there were routes perceived as easier to get through, organised criminals would still exploit people who could not access those.
“You can’t turn the United Kingdom into a fortress,” added Mr Sawyer, who is the Chief Constable of Devon and Cornwall Police.
Media caption I’ve seen people running out of a lorry’
Thurrock’s Conservative MP Jackie Doyle-Price said there needed to be an international response.
“We have partnerships in place but those efforts need to be rebooted, this is an international criminal world where many gangs are making lots of money and until states act collectively to tackle that it is going to continue,” she said.
Richard Burnett, chief executive of the Road Haulage Association, said temperatures in refrigerated trailers could be as low as -25C.
He described conditions for anyone inside as “absolutely horrendous”.
Prime Minister Boris Johnson said it was an “unimaginable tragedy and truly heartbreaking”.
In 2015, the bodies of 71 people were found in an abandoned lorry on an Austrian motorway. Police suspected the vehicle was part of a Bulgarian-Hungarian human trafficking operation.
SYDNEY (Reuters) – A Solomon Islands task force recommended to the government on Friday that the South Pacific archipelago sever its long-standing ties with Taiwan and normalise diplomatic relations with Beijing.
The recommendation is likely to help Beijing peel away another ally from self-ruled Taiwan, which Beijing considers a wayward province with no right to state-to-state ties.
The parliamentary task force advised the government to switch ties to China and invite it to establish a diplomatic mission in the capital, Honiara, on the island of Guadalcanal, according to a copy of its report obtained by Reuters.
“The findings reveal that Solomon Islands stands to benefit a lot if it switches and normalizes diplomatic relations with PRC,” the task force said, referring to China by its official name of the People’s Republic of China.
The recommendation was discussed at a cabinet meeting on Friday, two sources with direct knowledge of the issue said. It has not been presented to parliament.
Prime Minister Manasseh Sogavare has repeatedly said the government would not make a formal decision until reviewing the findings of the task force, which has toured the Pacific studying Chinese aid and bilateral financing.
Taiwan’s representative office in the Solomon Islands called the report a “fallacy” in a Facebook post and said the task force members did not conduct proper fact-finding.
The government of the Solomon Islands did not respond to questions.
China’s foreign ministry did not immediately comment.
A diplomatic switch by the Solomons would reduce the number of countries that recognise Taiwan to 16, after El Salvador in Central America, Burkina Faso in West Africa and the Dominican Republic in the Caribbean, all switched to Beijing last year.
The South Pacific has been a diplomatic stronghold for Taiwan, where formal ties with six island nations make up more than a third of its total alliances, though China has in recent years been expanding its influence in the region.
Solomon Island lawmakers who support maintaining ties with Taiwan will want the report to be made public, and to get feedback before any decision is made, according to one of the sources.
Taiwan’s supporters, who include many university students, would like the decision delayed until Sogavare travels to the U.N. General Assembly meeting in New York later this month, in the hope talks he has there might save the Taiwan alliance.
The issue has divided loyalties in the former British protectorate, an archipelago of just over 600,000 people.
The United States has criticised China for pushing poor countries into debt, mainly through lending for large-scale infrastructure projects, and accused China of using “predatory economics” to destabilise the Indo-Pacific region.
China denies that.
One Solomon Islands province has said it would not be responsible for repaying any debts incurred by the government, according to media reports.
US president likely had Beijing ‘on his mind’ when he made his audacious offer, diplomat says
Proposal ‘could be interpreted as a very clear signal’ to China and Denmark that the US sees Greenland as part of an exclusive strategic zone, academic says
China has been building closer ties with Greenland in recent years. Photo: Reuters
US President Donald Trump’s eyebrow-raising idea to buy Greenland from Denmark last month epitomised what analysts say is Washington’s fear of the growing interplay of Chinese money, Russian aggression and Arctic political division.
Of all the countries involved in the region, Denmark is feeling the most heat, and not just because Trump recently cancelled a trip and called its Prime Minister Mette Frederikse “nasty” for describing his plan to buy the world’s largest island “absurd”.
Over the past few years, both of Denmark’s self-ruled governments – Greenland and the Faroe Islands – have increasingly turned to China for commercial deals, adding weight to Beijing’s growing strategic influence in the vast area that forms the common backyard of Europe, North America and Russia.
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Greenland is of particular concern to the White House and the Pentagon as it is home to the US Thule Air Force Base, located far above the polar circle and which served as the first line of defence during the cold war.
Nowadays, the island is also strategically important for the US ballistic missile early warning system, as the shortest route from Europe to North America goes via the ice-cloaked, resource-rich territory.
“Though it’s difficult to tell the motivations of President Trump, he likely had China on his mind with his Greenland offer,” said a Beijing-based diplomat, who asked not to be named.
The US was likely to step up its presence in Greenland in the future, the person said.
In May, US Secretary of State Mike Pompeo accused China and Russia of introducing a strategic power struggle into the Arctic region and described Beijing’s behaviour there as aggressive.
When Greenland signalled an interest in engaging a Chinese state-owned company to build two airports in 2017 – the island’s prime minister flew to Beijing to appeal for financial backing – Copenhagen stepped in amid US pressure, reluctantly agreeing to finance the projects from the public coffers.
Denmark’s reluctance stems from a long-standing mistrust between Copenhagen and Greenland, as the island’s quest for economic development is viewed by the Danes as an attempt to shore up capital to push for a future independence movement.
“There is no doubt that the US foreign and security policy community is becoming far more interested in Greenland as a strategic asset,” said Andreas Bøje Forsby, a researcher at the University of Copenhagen’s Nordic Institute of Asian Studies.
“Proposing to buy Greenland could be interpreted as a very clear signal to both China and Denmark that Greenland is part of an exclusive American strategic zone,” he said.
Danish Prime Minister Mette Frederikse described Donald Trump’s plan to buy Greenland as “absurd”. Photo: Reuters
The government of the Faroe Islands – an archipelago located between Scotland, Norway and Iceland – has a similar readiness to engage with China but for a different purpose.
Unlike Greenland, there are no immediate political movements calling for independence from Denmark, making its overall relationship with Copenhagen more amiable.
This month, the Faroese government will open a liaison office in Beijing, located within the Danish embassy.
“Our top priority is to have a free-trade agreement with China,” Sigmundur Isfeld, the first head of the Faroe Islands’ representation to Beijing, said.
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With Norway – a key competitor of the Faroes in the fishing and export industries – eyeing a similar arrangement with China, the time was ripe to clinch a deal, he said.
“It is a challenge for us … we need to get in the game.”
Although part of Denmark, the Faroe Islands are not part of the European Union and therefore have to form separate trade agreements with other countries.
“For example, there is an EU-Japan economic partnership agreement. It covers all EU nations, but it does not cover the Faroe Islands,” Isfeld said.
Trade between Greenland and China totalled US$126 million in 2108. Photo: AFP
China, for its part, has sought to exert its economic and cultural influence on the Faroes, which has a population of about 52,000 people.
, the embattled Chinese telecoms giant, has been working with the islands’ main telecoms provider for four years and is said to be finalising a plan for 5G upgrades across the archipelago.
Beijing also helped fund a project for a Chinese-Faroese dictionary.
With a population of about 56,000 people, Greenland is one of China’s smallest trading partners. In the first seven months of 2019, trade between the two was US$126 million, with Chinese imports of fish accounting for the bulk of the total.
The Greenland government’s annual political and economic report for 2019 said that strong demand for metals from China had contributed to mineral and mining projects in the country, though China’s transition to a less mineral-intensive economy could spell trouble for the future of the sector.
The island’s gross domestic product is expected to grow by 3 per cent this year, according to the report, with seafood – principally cod, halibut and prawns – set to continue to be its chief export.
The end of the Arctic as we know it
China’s attempts in recent years to expand its involvement in Greenland have run into roadblocks.
In 2016, a Chinese mining company expressed interest in taking over an abandoned marine station in Grønnedal, an offer that the Danish government turned down the following year. A Chinese state-owned construction company had also offered to build airports in Greenland, but withdrew its offer this year.
Also this year, China expanded its involvement in exporting from Kvanefjeld, one of the world’s largest deposits of rare earths and uranium, by creating a joint venture to process and export the resources.
Beijing has made clear its strategic ambitions in the region. Early last year, it unveiled its Polar Silk Road strategy, plotting the course for its future development goals in the region – including scientific, commercial, environmental preservation and resource extraction efforts.
It also aligned its Arctic interests with its Belt and Road Initiative. Chinese companies are encouraged to invest in building infrastructure along the routes and conduct commercial trial voyages to gauge feasibility.
Putin boasts of nuclear icebreaker fleet as he outlines Arctic expansion plans
Anders Rasmussen, a former Danish prime minister and erstwhile Nato secretary general, said in an article published in Atlantic magazine last month that with melting ice caps opening the Arctic Sea to shipping, Arctic sea lanes “will likely become another flashpoint of renewed competition among the great powers as climate change alters our world”.
It was a situation he said he found “regrettable, but inevitable”.
“Both China and Russia are interested in getting a foothold in Greenland, to expand their influence in the Arctic region,” Rasmussen said. “Instead of being a source of contention,
Greenland should serve to highlight how many interests the United States and Denmark have in common.”
Beijing has lent billions of dollars to countries on the continent to build railways, highways and airports but critics say the borrowings are unsustainable
Chinese officials say the projects will pay off in the long run and host nations are well aware of their limits and needs
Illustration: Lau Kakuen
When Clement Mouamba went to Beijing last year, he had two main tasks.
The prime minister of the Republic of Congo needed to find out exactly how much his country owed to China, a number the struggling, oil-rich central African nation had until then not been able to provide the International Monetary Fund (IMF) to qualify for a bailout. He also needed to convince Beijing to restructure its debt to ensure sustainability.
The IMF had put talks for further loans on hold until Mouamba’s administration could say exactly how much it had to repay to the country’s external creditors, including China – the republic’s single largest bilateral lender – and oil multinationals such as Glencore and Trafigura.
The country, which heavily depends on oil revenue, turned to China and private oil majors for funding to run the government when in 2014 oil prices fell from a high of US$100 per barrel to as low as US$30.
The Republic of Congo has since restructured its borrowings from China, which holds about a third, or US$2.5 billion, of the Congolese debt, by extending the repayment period by an additional 15 years.
A number of other African countries struggling to service their loans from Beijing have also pursued concessions. Ethiopia has had part of its Chinese debt written off and terms relaxed for the US$3.3 billion loan it took to build its railway, while Zambia is seeking similar adjustments for its borrowings used to build airports and highways.
Critics say countries on the continent are being burdened with unrealistic levels of debt for inviable infrastructure backed and built by China without adequate transparency and scrutiny.
The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably. I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity: Obert Hodzi of the University of Helsinki in Finland
But Chinese observers say the West must take some of the blame for the countries’ debt problems and that the support China offers will benefit the host countries in the long run.
In the early 1990s, when China began to embrace Africa again after years of isolation from the outside world, the aspiring manufacturer was at a serious disadvantage in the race for raw materials and markets for its industrial goods.
The former colonial powers of the West had already sewn up deals for many of the continent’s most lucrative and readily exploitable reserves, from fossil fuels to minerals.
China needed new strategies to convince African governments to allow it access raw materials for its industries and markets for its products to a largely unfamiliar partner.
China also wanted to challenge the dominance of the US in global trade and politics so it courted allies in Africa to help it push for political legitimacy in international institutions.
A Kenya Railways freight train leaves the port station on the Mombasa-Nairobi railway in Mombasa, Kenya, a huge project backed by China. Photo: Bloomberg
At the time, many African leaders were under fire to liberalise their economies. China’s approach was to promise not to meddle in individual country’s internal affairs and assure African countries that they could get billions in exchange for future delivery of minerals through resource-backed deals.
Beijing sold its policies that it had no conditions attached to its development finance. In the drive to drum up business, China promised affordable loans for African countries to build roads, bridges, highways, airports and power dams.
Is Kenya’s Chinese-built railway a massive white elephant?
But Beijing also pursued tied finance, ensuring that countries borrowing from China used Chinese contractors to implement the projects rather than open them up to outside bids.
In addition, many of the deals were built on weak financial, technical and environmental conditions, with Chinese state firms conducting the technical feasibility, environmental impact assessment and financial viability studies for free for projects that they also build.
For example, in Kenya, the China Road and Bridge Corporation conducted a free feasibility study that was used in the construction of the railway.
The same company was handed the contract to implement the project and is operating both the passenger and cargo train service for a fee.
Chinese companies were responsible for the construction of a rail line between Addis Ababa and Djibouti. Photo: AFP
In contrast, the World Bank and its partner institution, the IMF, demand that such studies be done by an independent consultant and not by the company that implements the project.
According to data compiled by the China-Africa Research Initiative, at the Johns Hopkins University School of Advanced International Studies, Beijing has advanced loans worth US$143 billion to African countries since 2000, levels that some critics say are unsustainable for the borrowers.
China meets resistance over Kenya coal plant, in test of its African ambitions
For many of China’s new African partners, these arrangements – from easy lending terms, to non-competitive bidding and opaque contract details – have led to new problems – problems that corrupt or poorly managed governments now share substantial responsibility.
Some critics, both in the West and in host countries, suggest there is a “debt-trap strategy” at the heart of Beijing’s push for international business and influence, but there is no evidence that China deliberately pushes other countries into debt to seize their assets or gain sway.
However, the drive for overseas contracts and big business has led some countries into difficulties with new debts, and there are question marks over the viability of many of the projects the money is funding.
Obert Hodzi, an international relations expert at the University of Helsinki in Finland, said the Addis Ababa-Djibouti railway and the Mombasa-Nairobi railway were good examples of huge projects that were financed by easy borrowing terms from China but were not sustainable and that had in turn forced the African partners to seek further Chinese help.
“The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably,” Hodzi said. “I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity.”
Ken Opalo, a Kenyan scholar at Georgetown University in Washington, said the key issue was the inability of African countries to design projects that were actually needed for the local economies.
A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region: Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi
“Most African countries have been willing to accept projects designed, financed, and implemented by Chinese firms,” Opalo said.
“It would be better to decouple the feasibility studies and design phases of projects from the financing. That way African governments can ensure that they are truly getting value for money.”
But Chinese officials said Beijing had invested in infrastructure largely at the request of the host countries, adding that it could take time to yield returns on the projects.
Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi, said the projects were valid assets with value that would grow in time.
“So, in the long run, it is beneficial to the host countries. Just like when young people buy a house with a mortgage, they may take some debts, but they have a place to live in and have their own assets,” Huang said.
“Underdeveloped infrastructure is the bottleneck that has been holding back Africa’s development. Up to today, many African countries, although in the same continent, are not connected with direct flights, railways or even roads. You have to fly to Paris or Zurich in order to get to some African countries.
“A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region.”
Huang said Beijing had advised the countries to act within their means and not to overstretch themselves when they considered projects that might not be in line with local conditions.
“When making investment decisions, the Chinese side, along with the recipient countries, carry out rigorous feasibility studies and evaluations. We do things according to our ability,” she said.
China’s leadership has also said it is paying close attention to the fiscal and financial difficulties faced by some African countries.
“As a good friend and good brother … the Chinese side is willing to lend a helping hand when needed by the African people to help them overcome temporary difficulties,” State Councillor and Foreign Minister Wang Yi said in January while on a trip to Ethiopia, adding that the debt situation in Africa is also a legacy issue.
China must allay any debt-trap fears in its dealings with Africa
“The African debt issue does not come up today, still less is it caused by the Chinese side. The African people know who are the initiators of African debt.”
The West should take a lot of the blame for worsening debt problems in some African countries, according to Li Anshan, from Peking University’s Centre for African Studies.
He cited the cases of Liberia and the Democratic Republic of Congo, two countries that have had close relations with the West for many years but remain ravaged by war and poverty despite immense natural resources.
“China-Africa relations have been going on for quite some time. Is there any African country which has got poorer because of its deal with China?” Li said.
Gyude Moore, a former Liberian minister of public works whose department oversaw construction and maintenance of various public infrastructure funded and built by China, said it would be difficult to imagine that China would knowingly ensnare its partners in debt.
“China attempts to differentiate itself from Western donors by limiting non loan-related conditionality. China also practices non-interference, so how a country manages its resources, treats its people or deploy its finances were considered ‘internal’,” he said.
“So, Chinese loans are negotiated faster and place less emphasis on public financial management.”
Moore, now a visiting fellow at the Centre for Global Development, said there were trade-offs in such situations.
China focuses on sustainable projects to dismiss fears of African debt trap
“If the loans are going to be fast – the due diligence will not be as rigorous. Chinese project selection mixes political with economic considerations. So, while a project may not make as much economic sense, it may pay political dividends,” he said.
He said non-transparent processes would invite abuse, be they Chinese, Western or African.
Other observers say the question of opacity is more directly related to China’s own economic system.
Howard French, author of China’s Second Continent: How a Million Migrants are Building a New Empire in Africa, said China has very limited transparency and public accountability in its own domestic processes.
The Mombasa railway station is seen in Mombasa, Kenya, in 2018. Photo: Xinhua
“So it would be unusual to expect that China would introduce greater transparency and accountability in its dealings with African countries than it is used to at home – that is, unless African governments insist on it,” French said.
“And this is where African governance comes in. African states should insist on contract transparency but often don’t do so because that offers leaders plentiful opportunities for graft.”
David Shinn, professor of international relations at George Washington University in Washington, agreed that China’s lack of loan transparency was a huge problem and increased the risk of corruption on both the African and Chinese sides. But he also said that in some cases, African governments might have negotiated poorly.
“This is, however, the responsibility of the African government. I don’t think China is purposely trying to encourage African debts in order to gain leverage,” Shinn said.
“In fact, China is becoming more careful about its lending because it is concerned it has made too much credit available to some African countries.”
China ‘ready to talk’ about trade deal with East Africa bloc
Huang Hongxiang, director of China House, a Nairobi-based consultancy that helps Chinese in Africa integrate better, agreed, saying the Chinese government needs to communicate more about projects in Africa but African countries also have a bigger part to play in ensuring better deals.
“On commercial viability, accountability, transparency and governance, I believe the responsibility does not lie with China, the US or the West but in the hands of African countries,” he said.
Wherever the fault lies, one thing is clear when money is wasted on ill-designed projects that have little to no economic return, according to Opalo.
“The lack of planning and transparency creates default risks … [and] African taxpayers will be left holding the bag.”
This article is the third in a series examining the local impact of Chinese investment and infrastructure projects in Africa. Read part one here and part two
Chinese Vice President Wang Qishan meets with Pakistani President Arif Alvi in Islamabad, Pakistan, May 26, 2019. Wang Qishan visited Pakistan from Sunday to Tuesday and held meetings with Pakistani President Arif Alvi and Prime Minister Imran Khan respectively on further strengthening bilateral relations. (Xinhua/Yan Yan)
ISLAMABAD, May 28 (Xinhua) — Chinese Vice President Wang Qishan visited Pakistan from Sunday to Tuesday and held meetings with Pakistani President Arif Alvi and Prime Minister Imran Khan respectively on further strengthening bilateral relations.
When meeting with the Pakistani president, Wang said China and Pakistan are “iron friends.” Throughout the past 68 years since the establishment of diplomatic ties, the two countries have always respected and supported each other on issues concerning each others’ core interests, forging the sincerest friendship.
In recent years, the development of China-Pakistan relations has kept a good momentum, with mutual political trust further enhanced, pragmatic cooperation continuously deepened and people-to-people exchanges growing more vigorous, Wang said.
He said the development of the China-Pakistan Economic Corridor (CPEC) has made concrete achievements and has become an important hallmark for China-Pakistan friendly cooperation in the new era, adding that his visit was meant for sending out a signal once more to peoples of the two countries and the world that China and Pakistan are all-weather strategic cooperative partners.
Wang said China is willing to strengthen the all-around cooperation with Pakistan in various sectors and at various levels, so as to make the friendship better benefit the two sides and forge a closer China-Pakistan community of shared future in the new era.
For his part, President Arif Alvi extended congratulations to the upcoming 70th anniversary of the founding of the People’s Republic of China. He said Pakistan-China cooperation has become more important in current times. Pakistan is firmly committed to the one-China policy, firmly supports China in safeguarding the country’s core and major interests, he said.
Pakistan wishes to deepen cooperation with China in such areas including agriculture, tourism and trade, with a bid to promote the all-weather strategic cooperative partnership further ahead, said the president, who also expressed appreciation for China’s support to Pakistan and wished China to play a bigger role in international and regional affairs.
After their meeting, the Pakistani president conferred on Wang the Nishan-e-Pakistan, the country’s highest award for foreign leaders.
While meeting with Pakistani Prime Minister Imran Khan, Wang said the prime minister has visited China twice since taking office and reached important consensus with Chinese leaders on further pushing forward the development of bilateral relations.
China is ready to join hands with Pakistan to deepen high-level exchanges, boost strategic communication and pragmatic cooperation as well as closely coordinate in international and regional affairs between the two sides, Wang said.
Wang called on the two sides to work for high-quality CPEC development in the next phase, and make concrete progress in industrial park building and agricultural cooperation.
China will speed up the implementation of social and people’s livelihood projects of early harvest, and discuss the third-party cooperation in the CPEC development, he added.
The Chinese vice president called for strengthened people-to-people and cultural exchanges and collaboration so as to expand the public foundation for the China-Pakistan friendship.
Wang hoped that Pakistan will take effective measures to provide security guarantees for the cooperation and exchanges between the two countries.
Imran Khan, for his part, said that Pakistan adheres to the friendly policy towards China, admires the achievements of China’s reform and opening-up and stands ready to consolidate the traditional friendship with China.
Pakistan also hopes to learn from China in terms of state governance, and enhance exchanges and cooperation in the sectors of agricultural technology, special economic zone development, talent training and anti-corruption.
Noting that fruitful results have been reaped in the CPEC development, the Pakistani prime minister said that the CPEC has played an important role in promoting Pakistan’s economic development and improving people’s livelihood.
He said Pakistan has established a special committee to take charge of inter-department and inter-sector coordination and ensure personnel safety of Chinese institutions in Pakistan.
Pakistan will continue to enhance coordination with China in international and regional affairs so as to enrich bilateral all-weather strategic cooperative partnership.
After the meeting, Wang Qishan and Imran Khan jointly witnessed the signing of bilateral cooperation agreements concerning agriculture, customs and disaster relief.
During his stay in Pakistan, the Chinese vice president also met with local leaders of the Punjab province, addressed the Friends of Silk Road Forum and visited Haier-Ruba Economic Zone.
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