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.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
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.
Researchers at academy of science believe electromagnetic wave model is key that will herald new era in radar detection and avoidance for military ships and aircraft
China’s J-20 stealth fighter. Photo: AFP
Chinese scientists have achieved a series of breakthroughs in stealth materials technology that they claim can make fighter jets and other weaponry lighter, cheaper to build and less vulnerable to radar detection.
Professor Luo Xiangang and colleagues at the Institute of Optics and Electronics, Chinese Academy of Sciences in Chengdu, Sichuan province, said they had created the world’s first mathematical model to precisely describe the behaviour of electromagnetic waves when they strike a piece of metal engraved with microscopic patterns, according to a statement posted on the academy’s website on Monday.
With their new model and breakthroughs in materials fabrication, they developed a membrane, known as a meta surface, which can absorb radar waves in the widest spectrum yet reported.
At present, stealth aircraft mainly rely on special geometry – their body shape – to deflect radar signals, but those designs can affect aerodynamic performance. They also use radar absorbing paint, which has a high density but only works against a limited frequency spectrum.
In one test, the new technology cut the strength of a reflected radar signal – measured in decibels – by between 10 and nearly 30dB in a frequency range from 0.3 to 40 gigahertz.
A stealth technologist from Fudan University in Shanghai, who was not involved in the work, said a fighter jet or warship using the new technology could feasibly fool all military radar systems in operation today.
“This detection range is incredible,” the researcher said. “I have never heard of anyone even coming close to this performance. At present, absorbing technology with an effective range of between 4 and 18 GHz is considered very, very good.”
China’s new radar system could spot stealth aircraft from at long range
The lower the signal frequency, the longer a radar’s detection range. But detailed information about a moving target can only be obtained with higher frequency radio waves. Militaries typically use a combination of radars working at different frequencies to establish lines of defence.
The Medium Extended Air Defence System, Nato’s early warning radar, operates at a frequency range of 0.3 to 1 GHz. The American Terminal High Altitude Area Defence system, the missile defence radar that caught Beijing’s attention when it was deployed in South Korea in 2017, operates at frequencies around 10 GHz.
Some airports use extremely short-range, high-frequency radars running at 20 GHz or above to monitor vehicle and plane movements on the ground, but even they might not be able to see a jet with the new stealth technology until it is overhead.
“Materials with meta surface technology are already found on military hardware in China, although what they are and where they are used remains largely classified,” the Fudan researcher said.
Professor Luo Xiangang. Photo: Baidu
Luo and his colleagues could not be reached for comment. But according to the academy’s statement and a paper the team published in the journal Advanced Science earlier this year, the stealth breakthroughs were based upon a discovery they made several years ago.
They found that the propagation pattern of radio waves – how they travelled – in extremely narrow metallic spaces was similar to a catenary curve, a shape similar to that assumed by chains suspended by two fixed points under their own weight.
China tests stealth ‘invisibility cloaks’ on regular fighter jets
Inspired by catenary electromagnetics, the team developed a mathematical model and designed meta surfaces suitable for nearly all kinds of wave manipulation.
These included energy-absorbing materials for stealth vehicles and antennas that can be used on satellites or military aircraft.
Zhu Shining, a professor of physics specialising in meta materials at Nanjing University, said the catenary model was a “novel idea”.
“The Institute of Optics and Electronics in Chengdu has conducted long-term research in this area which paved a solid foundation for their discoveries. They have done a good job,” Zhu said.
“Scientists are exploring new features of metal materials, some of them are already in real-life applications.”
SHANGHAI, Aug. 11 (Xinhua) — Over 15 of Shanghai’s popular destinations, including the Shanghai Wildlife Park, Shanghai Center and the Shanghai Museum reopened Sunday after typhoon Lekima left the city.
The sky cleared up in the business hub on Sunday as Lekima headed north through Jiangsu and Shandong provinces.
Typhoon Lekima, the ninth typhoon of the year, made landfall in the city of Wenling, the coastal areas of eastern Zhejiang Province, at 1:45 a.m. Saturday morning, according to the National Meteorological Center.
Anticipating typhoon damage, Shanghai closed many of its popular tourist sites including parks and museums for safety reasons starting from Aug. 9. A total of 92 scenic sites, parks and resorts as well as museums were closed on Saturday.
On Sunday, 70 tourist sites remained closed for safety checks and are scheduled to reopen on Monday or Tuesday, said the municipal’s cultural and tourism bureau.
SHANGHAI (Reuters) – The death toll from a major typhoon in eastern China rose to 30 on Sunday, with 18 people missing, state broadcaster CCTV reported, as the country braced for more travel disruptions as the storm moved further north up the coast.
Typhoon Lekima made landfall early on Saturday in the eastern province of Zhejiang with winds gusting to 187 km (116 miles) per hour, causing travel chaos with thousands of flights canceled and rail operations suspended.
The typhoon damaged more than 173,000 hectares of crops and 34,000 homes in Zhejiang, provincial authorities said in estimating the economic losses at 14.57 billion yuan ($2 billion), the state news agency Xinhua said.
Lekima, China’s ninth typhoon of this year, is expected to make a second landing along the coastline in Shandong province, prompting more flight cancellations and the closure of some expressways, Xinhua and state broadcaster CCTV said.
In Zhejiang, many of the deaths occurred about 130 km north of the coastal city of Wenzhou, where a natural dam collapsed in an area deluged with 160 mm (6.3 inches) of rain within three hours, causing a landslide, Xinhua reported.
State media reports showed rescuers wading in waist-high waters to evacuate people from their homes, while the Ministry of Emergency Management said that more than one million people in the financial hub of Shanghai, as well as Zhejiang and Jiangsu provinces, have been evacuated due to the typhoon.
An estimated 3,200 flights were canceled, state broadcaster CCTV reported, although some suspensions on high-speed railway lines were lifted on Sunday.
At least 13 people have been killed and more than a million forced from their homes as Typhoon Lekima hit China.
Sixteen people were also missing after a landslide was triggered by the storm, state media reported.
Lekima made landfall in the early hours of Saturday in Wenling, between Taiwan and China’s financial capital Shanghai.
The storm was initially designated a “super typhoon”, but weakened slightly before landfall – when it still had winds of 187km/h (116mph).
The fatal landslide happened when a dam broke in Wenzhou, near where the storm made landfall, state media said.
Lekima is now slowly winding its way north through the Zhejiang province, and is expected to hit Shanghai, which has a population of more than 20 million.
Emergency crews have battled to save stranded motorists from floods. Fallen trees and power cuts are widespread.
Image copyright EPAImage caption A worker looks for his belongings at a construction site shelter collapsed by the storm
Authorities have cancelled more than a thousand flights and cancelled train services as the city prepares for the storm.
It is expected to weaken further by the time it reaches Shanghai, but will still bring a high risk of dangerous flooding.
The city evacuated some 250,000 residents, with another 800,000 in the Zhejiang province also being taken from their homes.
An estimated 2.7 million homes in the region lost power as power lines toppled in the high winds, Chinese state media said.
It is the ninth typhoon of the year, Xinhua news said – but the strongest storm seen in years. It was initially given China’s highest level of weather warning but was later downgraded to an “orange” level.
Media caption Typhoon Lekima inches towards China
Chinese weather forecasters said the storm was moving north at just 15km/h (9mph).
It earlier passed Taiwan, skirting its northern tip and causing a handful of injuries and some property damage.
Coming just a day after a magnitude six earthquake, experts warned that the combination of earth movement and heavy rain increased the risk of landslides.
Lekima is one of two typhoons in the western Pacific at the moment.
Further east, Typhoon Krosa is spreading heavy rain across the Northern Mariana Islands and Guam. It is moving north-west and could strike Japan some time next week, forecasters said.
BEIJING (Reuters) – Eighteen people were killed and 14 were missing in eastern China on Saturday in a landslide triggered by a major typhoon, which caused widespread transport disruptions and the evacuation of more than one million people, state broadcaster CCTV reported.
Typhoon Lekima made landfall early on Saturday in the eastern province of Zhejiang with maximum winds of 187 km (116 miles) per hour, although it had weakened from its earlier designation as a “super” typhoon, the official Xinhua news agency reported.
Thousands of flights were cancelled in eastern China, according to the country’s aviation regulator, with most flights into and out of Shanghai’s two major airports cancelled on Saturday afternoon, their websites showed.
China’s weather bureau on Saturday issued an orange alert, its second highest, after posting a red alert on Friday, when the storm forced flight cancellations in Taiwan and shut markets and businesses on the island.
The deadly landslide occurred about 130 km north of the coastal city of Wenzhou, when a natural dam collapsed in an area deluged with 160 millimetres (6.3 inches) of rain within three hours, CCTV reported.
The storm was moving northward at 15 kph and was gradually weakening, Xinhua reported, citing the weather bureau.
High winds and heavy rains battered the financial hub of Shanghai on Saturday afternoon, and Shanghai Disneyland was shut for the day.
Nearly 200 hundred trains through the city of Jinan in Shandong province had been suspended until Monday, Xinhua reported.
More than 250,000 residents in Shanghai and 800,000 in Zhejiang province had been evacuated due to the typhoon, and 2.72 million households in Zhejiang had power blackouts as strong wind and rain downed electricity transmission lines, state media reported.
Some 200 houses in six cities in Zhejiang had collapsed, and 66,300 hectares (163,830 acres) of farmland had been destroyed, CCTV said.
The storm was predicted to reach Jiangsu province by the early hours of Sunday and veer over the Yellow Sea before continuing north and making landfall again in Shandong province, CCTV said.
Coastal businesses in Zhejiang were shut and the Ministry of Emergency Management warned of potential risk of fire, explosions and toxic gas leaks at chemical parks and oil refineries.
Image copyright AFPImage caption Lekima has brought heavy rain to Taiwan
Chinese authorities have declared a red alert as a powerful typhoon heads towards the eastern coast.
Typhoon Lekima is currently battering Taiwan with winds of more than 190km/h (120mph) and is due to make landfall in China’s Zhejiang province on Saturday.
Emergency teams have been deployed to the region to guide relief work, China’s emergency ministry said.
Thousands of people further up the coast in Shanghai have been warned to prepare to evacuate.
Lekima, which is the ninth typhoon so far this year, strengthened into a super typhoon late on Wednesday, but Taiwanese authorities have since downgraded it to a regular typhoon.
Flood warnings have been issued for eastern sections of China’s Yangtze River and the Yellow River until Wednesday. The provinces of Jiangsu and Shandong are also on alert.
Cruise liners have been told to delay their arrival in Shanghai and some train services have been suspended over the weekend.
Beijing has also cancelled some trains heading to and from the Yangtze delta region.
Lekima is one of two typhoons in the western Pacific at the moment. Further east, Typhoon Krosa is spreading heavy rain across the Northern Mariana Islands and Guam. It is moving north-west and could strike Japan some time next week, forecasters said.
Media caption BBC Weather’s Sarah Keith-Lucas on typhoons Lekima and Krosa
Lekima was passing the north of Taiwan on Friday, causing flight cancellations and the closures of schools and offices.
Power was cut to more than 40,000 homes and the island’s high speed rail service was suspended north of the city of Taichung, local media reported.
The huge storm came a day after eastern Taiwan was rattled by a 6.0 magnitude earthquake. Experts said the risks of landslides triggered by the tremor were made more likely by the typhoon dumping up to 900mm (35 inches) of rain on Taiwan’s northern mountains.
Media caption The 6.0 earthquake in Taiwan was caught on cat cam
Lekima also brought heavy rain and high winds to south-west Japan on Friday, cutting power to about 14,000 homes, broadcaster NHK reported.
China’s weather bureau said Lekima was expected to have weakened further by the time it made landfall. The country has a four-stage colour-coded warning system, with red representing the most severe weather.
BEIJING, Aug. 6 (Xinhua) — China on Tuesday announced the expanding of its Shanghai free trade zone (FTZ) in its latest major strategic move for further opening-up.
The addition of the Lingang area is a major strategic decision made by the Communist Party of China Central Committee to further opening up, Vice Commerce Minister Wang Shouwen told a press conference Tuesday.
It also demonstrates China’s clear stand to adhere to all-round opening up in the new era and an important measure taken to actively lead the healthy development of economic globalization, Wang said.
The new Lingang section will match the standard of the most competitive free trade zones worldwide and implement opening-up policies and systems with strong global market competitiveness, according to an overall plan for the new Lingang area of the China (Shanghai) Pilot Free Trade Zone issued by the State Council, or the cabinet.
Lingang, with a start-up area of 119.5 square kilometers, will facilitate overseas investment and capital flows and realize the free flow of goods, according to the plan.
Aerial photo taken on June 27, 2019 shows the Lingang area in Shanghai, east China. (Xinhua/Fang Zhe)
“The new area is not just a simple expansion of the existing free trade zone and a copy of existing policies. It is comprehensive, profound and fundamental institutional innovation and reform,” Chen Yin, executive vice mayor of Shanghai, told the press briefing.
The Shanghai FTZ had an area of 28.78 square kilometers when it was established in September 2013 and expanded to 120.72 square kilometers in December 2014.
Over the past years, the Shanghai FTZ has made remarkable progress in its bold exploration in sectors like investment, trade and finance and contributed precious experience to the all-around deepening of reforms and high-level opening-up, said Wang.
SPECIAL ZONE
The area will be built into a special economic function zone with global influence and competitiveness, to better serve the country’s overall opening-up strategy, the plan says.
“The status as a special economic function zone means that it is not adding more facilitation but moving toward real investment and trade liberalization,” said Shen Yuliang, a researcher with the Institute of World Economics under the Shanghai Academy of Social Sciences.
By 2025, the Lingang area will have a relatively mature institutional system of investment and trade liberalization and facilitation. By 2035, it will be built into a special economic function zone with strong global market influence and competitiveness, becoming an important platform for the country to integrate into economic globalization.
The area, administered like a special economic zone, will establish an institutional system with its focus on investment and trade liberalization and set up an open industrial system with global competitiveness, according to the plan.
Aerial photo taken on June 27, 2019 shows new cars wating for shipment at a port in the Lingang area in Shanghai, east China. (Xinhua/Fang Zhe)
It will strive to become a business cluster for international business, cross-border financial services, frontier technology research and development and cross-border services trade, and speed up the industrial upgrading of existing companies.
The Yangshan comprehensive bonded area will be set up there, and the area will also pilot free capital inflows and outflows and free capital conversion.
Income tax shall be levied at a reduced rate of 15 percent within five years from its establishment for qualified enterprises engaged in manufacturing and R&D in key fields including integrated circuits, artificial intelligence, biomedicine and civil aviation, says the plan.
Shanghai will also set up a fund of 100 billion yuan (14.2 billion U.S. dollars) in five years to support the development of the new area, said Chen.
OPENING-UP, INNOVATION LEADER
The plan says the new area will be granted greater administration power for self-development, self-reform and self-innovation, and regularly promote its experience to spearhead a new round of reform and opening-up of the Yangtze River Delta.
Apart from serving the Belt and Road Initiative and the Yangtze River Economic Belt, the new area is also designed to promote the coordinated development, reform and opening-up of the Yangtze River Delta, said Wang.
The Lingang area, home to Tesla’s gigafactory, has become a cluster of high-end industries after more than a decade of development, and it now emphasizes the development of key industries like integrated circuits, AI, biomedicine and civil aviation.
Aerial photo taken on July 25, 2018 shows Phase IV of the Yangshan Deep Water Port of east China’s Shanghai. (Xinhua/Ding Ting)
China’s economy faces complicated external situations and to improve industrial competitiveness and move up the value chain, the boost of scientific and technological innovation capacity is the only way, said Yin Chen, secretary general of the Shanghai Free Trade Zone Comprehensive Research Institute with Fudan University.
With more openness, the new area can boost Shanghai’s high-end resources allocation ability and better represent the country to take part in global cooperation and competition, said Yin.
BOON FOR BUSINESSES
The addition of the new area to the FTZ is a boon for both domestic and foreign businesses.
“The new tax policy support will help speed up the commercialization of autonomous driving,”said Xue Jiancong, vice president of TuSimple, an AI company registered in Lingang that received the country’s first open road testing license for trucks.
“We hope that the new policies will help promote the free flow of auto parts,”said Song Feng, president of Caterpillar Remanufacturing Services (Shanghai) Co., Ltd., citing current restrictions on imports of old machinery parts.
Yu Bo, a tax partner at accounting firm PwC, said China has been rolling out institutional reforms over the past years to allow domestic institutions in alignment with international standards.
China, among the top three investment destinations with the biggest development potential for business executives worldwide in an PwC survey, should continue to improve the business environment for foreign investment and conduct more institutional reforms to promote the higher-level opening-up, said Yu.
China suggests good progress made in Regional Comprehensive Economic Partnership talks after marathon 10-day negotiations in Zhengzhou
Indian Commerce Minister Piyush Goyal has opted to skip the upcoming high-level meetings, adding fuel to rumours that the country could be removed
The Association of Southeast Asian Nations (Asean) has overtaken the US to become China’s second-largest trading partner in the first half of 2019. Photo: AP
China has claimed “positive progress” towards finalising the world’s largest free-trade agreement by the end of 2019 after hosting 10 days of talks, but insiders have suggested there was “never a chance” of concluding the deal in Zhengzhou.
The 27th round of the Regional Comprehensive Economic Partnership (RCEP) negotiations closed on Wednesday in the central Chinese city.
working level conference brought over 700 negotiators from all 16 member countries to Henan province, with China keen to push through a deal which has proven extremely difficult to close.
If finalised, the agreement, which involves the 10 Asean nations, as well as China, Japan, South Korea, Australia, New Zealand, and India, would cover around one-third of the global gross domestic product, about 40 per cent of world trade and almost half the world’s population.
“This round of talks has made positive progress in various fields,” said assistant minister of commerce Li Chenggang, adding that all parties had reaffirmed the goal of concluding the deal this year. “China will work together with the RCEP countries to proactively push forward the negotiation, strive to resolve the remaining issues as soon as possible, and to end the negotiations as soon as possible.”
China’s Foreign Minister Wang Yi (fifth left) poses with foreign ministers from the Association of Southeast Asian Nations (Asean) countries during the ASEAN-China Ministerial Meeting in Bangkok. Photo: AFP
China is keen to complete a deal which would offer it a buffer against the United States in Asia, and which would allow it to champion its free trade position, while the US pursues protectionist trade policy.
The RCEP talks took place as Chinese and American trade negotiators resumed face-to-face discussions in Shanghai, which also ended on Wednesday, although there was little sign of similar progress.
As the rivalry between Beijing and Washington has intensified and bilateral trade waned, the Association of Southeast Asian Nations (Asean) overtook the US to become China’s second-largest trading partner in the first half of 2019. From January to June, the trade volume between China and the 10-member bloc reached US$291.85 billion, up by 4.2 per cent from a year ago, according to government data.
The Asean bloc is made up of Indonesia, Thailand, Malaysia, Singapore, Philippines, Vietnam, Myanmar, Cambodia, Brunei and Laos.
China will work together with the RCEP countries to proactively push forward the negotiation, strive to resolve the remaining issues as soon as possible, and to end the negotiations as soon as possible. Li Chenggang
RCEP talks will now move to a higher level ministerial meeting in Beijing on Friday and Saturday, but trade experts have warned that if material progress is not made, it is likely that the RCEP talks will continue into 2020, prolonging a saga which has already dragged on longer than many expected. It is the first time China has hosted the ministerial level talks.
But complicating matters is the fact that India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks, with an Indian government official saying that he has to participate in an extended parliamentary session.
India is widely viewed as the biggest roadblock to concluding RCEP, the first negotiations for which were held in May 2013 in Brunei. Delhi has allegedly opposed opening its domestic markets to tariff-free goods and services, particularly from China, and has also had issues with the rules of origin chapter of RCEP.
China is understood to be “egging on” other members to move forward without India, but this could be politically explosive, particularly for smaller Asean nations, a source familiar with talks said.
Deborah Elms, executive director of the Asian Trade Centre, a Singapore-based lobby group, said that after the last round of negotiations in Melbourne between June 22 to July 3 – which she attended – there was “frustration” at India’s reluctance to move forward.
She suggested that in India’s absence, ministers in China could decide to move forward through a “pathfinder” agreement, which would remove India, but also potentially Australia and New Zealand.
India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks this week in Beijing. Photo: Bloomberg
This “Asean-plus three” deal would be designed to encourage India to come on board, Elms said, but would surely not go down well in Australia and New Zealand, which have been two of the agreement’s biggest supporters.
New Zealand has had objections to the investor protections sections of RCEP, and both countries have historically been pushing for a more comprehensive deal than many members are comfortable with, since both already have free trade agreements with many of the other member nations.
However, their exclusion would be due to “an unfortunate geographical problem, which is if you’re going to kick out India, there has always been an Asean-plus three concept to start with”. Therefore it is easier to exclude Australia and New Zealand, rather than India alone, which would politically difficult.
A source close to the negotiating teams described the prospect of being cut out of the deal at this late stage as a “frustrating rumour”, adding that “as far as I know [it] has no real basis other than a scare tactic against India”.
There was “never a chance of concluding [the deal during] this round, but good progress is being made is what I understand. The key issues remain India and China”, said the source, who wished to remain anonymous.
Replacing bilateral cooperation with regional collaborations is a means of resolving the disputesTong Jiadong
However, Tong Jiadong, a professor of international trade at the Nankai University of Tianjin, said Washington’s refusal to recognise India as a developing country at the World Trade Organisation could nudge the world’s second most populous nation closer to signing RCEP.
“That might push India to the RCEP, accelerating the pace of RCEP,” Tong said, adding that ongoing trade tensions between Japan and South Korea could also be soothed by RCEP’s passage.
“Replacing bilateral cooperation with regional collaborations is a means of resolving the disputes between the two countries,” Tong said.
Although the plan was first proposed by the Southeast Asian countries, China has been playing an increasingly active role, first as a response to the now defunct US-backed Trans-Pacific Partnership (TPP), and more recently as a means of containing the impact of the trade war.
China’s vice-commerce Minister, Wang Shouwen, told delegates last week that RCEP was “the most important free trade deal in East Asia”. He called on all participants to “take full advantage of the good momentum and accelerating progress at the moment” to conclude a deal by the end of the year.
Chinese Foreign Minister Wang Yi wraps up tour of Brazil and Chile, as Colombian president heads for Beijing
Ecuador president tells US Secretary of State Mike Pompeo ‘smaller countries pay when the big ones fight’
Chinese Foreign Minister Wang Yi is greeted by an honour guard as he arrives at the Itamaraty Palace for a meeting with his Brazilian counterpart Ernesto Araujo on Thursday. Photo: AP
Latin American countries are caught in the middle of a geopolitical tug of war between Beijing and Washington as China boosts its ties in the region in a bid to counterbalance the effects of its trade war with the US.
China’s Foreign Minister Wang Yi wraps up a tour of Latin America on Sunday which began last week in Brazil and ended with an official visit to Chile. He returns to Beijing on the same day Colombia’s President Ivan Duque Marquez arrives for a three-day state visit to China which will include a meeting with Chinese President Xi Jinping.
Wang was in Brazil for the latest summit of foreign ministers from the BRICS countries – an association of emerging countries made up of Brazil, Russia, India, China and South Africa – as well as the third China-Brazil foreign ministers’ comprehensive strategic dialogue with Brazilian Foreign Minister Ernesto Araujo.
China has overtaken the US as Brazil’s largest trading partner, with Brazilian soybeans – one of the country’s biggest exports – and other agricultural products replacing American imports since the start of the US-China trade war a year ago.
Brazilian soybeans – one of the country’s biggest exports – and other farm products are being sold to China as a result of the trade war. Photo: Reuters
The growing importance of China to Brazil’s economy has created a difficult position for President Jair Bolsonaro, who accused Beijing of trying to buy Brazil during his election campaign, but changed tack on assuming office in January.
In March, Bolsonaro called China his country’s “main partner, politically as well as economically and commercially” and announced plans to travel to Beijing this year, a visit which was confirmed on Tuesday for late October.
China is now Latin America’s second largest trading partner with bilateral trade at US$307.4 billion, growing 18.9 per cent over the previous year, according to China’s ministry of commerce, in a relationship focused on commodity imports, including mining products like copper and energy, as well as soybeans and other agricultural goods.
While the US and China have tentatively agreed to resume talks in Shanghai next week, China and Latin American countries are likely to continue deepening their trade relations as production chains realign as a result of the trade war, according to Gustavo Oliveira, assistant professor of global and international studies at the University of California, Irvine.
“This means Chinese imports of Latin American agricultural and mineral commodities, and Latin American imports of Chinese manufactured products and hi-tech, might contribute to China’s ability to stand its ground against US pressure,” he said.
China in Latin America: partner or predator?
Oliveira said domestic contradictions in most Latin American countries complicated relations with China, as few leaders had the capacity to press or leverage China for much. “Unfortunately, therefore, most in this crop of Latin American leaders are basically placing themselves as junior partners or pawns in the geopolitical tug of war between the US and China.”
US Secretary of State Mike Pompeo put the pressure on Latin American countries over their relationship with China during his four-day tour of the region last weekend, when he visited Argentina, Ecuador, Mexico, and El Salvador.
In a joint interview with Pompeo during the visit, Ecuador’s new President Lenin Moreno defended the country’s China ties, and urged Washington and Beijing to resolve their conflicts for the benefit of other nations in the region.
“We hope that the US and China, the greatest powers in the world now, will find agreement easily because, unfortunately, when the big ones are discussing or fighting and have conflicts, the ones that are paying for all of that are the smaller countries,” he said.
“Now, when two elephants fight, the ones who lose are the insects who are of course being crushed by the elephants in the attempt to evade them.”
US Secretary of State Mike Pompeo (left) and Ecuadorian President Lenin Moreno hold a joint press conference during Pompeo’s tour of Latin America on July 20. Photo: EPA-EFE
Pompeo blasted China’s role in the region during a previous tour of South America in April, when he singled out Beijing’s support for President Nicolas Maduro of Venezuela. Maduro is backed by Beijing, Russia and other allies, while the US and many European countries have supported opposition leader Juan Guaido as legitimate president since elections in January.
Speaking from Chile on that tour, Pompeo said Beijing’s calls for non-intervention in Venezuela were “hypocritical” and aimed at protecting Beijing’s investments in the country, as well as debts owed to China by Venezuela.
Pompeo also accused Beijing of “sowing discord” in the region through debt traps. “When China does business in places like Latin America, it often injects corrosive capital into the economic bloodstream, giving life to corruption and eroding good governance,” he said.
Professor Cui Shoujun of Renmin University in Beijing said Washington’s concerns about “debt trap diplomacy” in Latin America reflected concerns that China’s growing involvement in financing infrastructure and development projects would make the region more pro-China.
“China’s interests in Latin America go beyond raw materials extraction,” he said. “The biggest point of tension between the US and China in the region is perhaps that China presents an alternative model for development that is very different from the Western model.”
‘Mr Pompeo, you can stop’: China hits back over Latin America criticism
While the US was drumming up tensions about China across the world, Beijing was not openly retaliating but responding with investment and trade for global partners, said Kevin Gallagher, researcher on China-Latin America ties, and professor at Boston University.
“The US points fingers and makes angry speeches in the region as China cuts investment deals and helps address infrastructure needs,” he said.
“Latin American countries’ governments are rightly keeping their heads down on the broader geopolitical winds, and are getting down to business with their largest trading partner.”
Switching first face-to-face gathering since G20 summit from Beijing sends message that ‘trade should be trade, and politics should be politics,’ analyst says
Trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are set to meet counterparts Vice-Premier Liu He and Commerce Minister Zhong Shan
Shanghai is China’s global financial hub, while Beijing is viewed as more of a political centre. Photo: Bloomberg
China’s decision to hold next week’s negotiations with the United States in Shanghai could be a fresh sign that Beijing is revising its strategy as it prepares for a protracted trade war, analysts said.
By choosing global financial hub Shanghai rather than the political centre of Beijing, China is trying to play down the political aspects of the talks and emphasise the commercial elements, analysts suggested.
The meeting will be the first face-to-face gathering of the two countries’ trade negotiators since talks collapsed in May without a deal as the US blamed China for renegading on earlier promises, while China blamed the US for being too demanding.
The trade teams have held two phone conversations in July, although neither Washington or Beijing have confirmed the venue or schedule for the talks next week.
Shen Jianguang, the chief economist at JD Digits and a veteran Chinese economy watcher, said China is changing the location of the talks to send a message that “trade should be trade, and politics should be politics”.
He added that the choice of Shanghai implies that China is trying to focus on the technical issues such as the US relaxation of sales restrictions to
and Treasury Secretary Steven Mnuchin are expected to lead the US delegation to meet their Chinese counterparts headed by Vice-Premier Liu He and Commerce Minister Zhong Shan, the South China MorningPostreported earlier this week.
The Shanghai talks will only result in a small stepShen Jianguang
Bloomberg and The Wall Street Journal reported on Wednesday that the talks will take place in Shanghai, and a source confirmed the location to the Post. Hua Chunying, China’s foreign ministry spokeswoman, said on Wednesday that she had no information to provide on the location of the talks.
Chang Jian, chief China economist at Barclays, said that the choice of Shanghai is a sign that the initial goal of the talks would be “smaller”, focusing more on specific import and export arrangements rather than wholesale institutional changes in China’s economic model.
“It shows that China is preparing for a protracted trade talks for years to come,” Chang said. “For China, a precondition for a grand deal is that the US has to lift all tariffs, which the US will find very hard to do.”
Aidan Yao, a senior emerging Asia economist at AXA Investment Managers, said the fact that it took almost a month after the ceasefire agreement reached between President Xi Jinping and US counterpart Donald Trump at the G20 summit in Japan for a face-to-face meeting to take place is already a confirmation of “the deep divide” that remains.
“Without a clear strategy to tackle them, I doubt anyone should hold their breath for a breakthrough” despite certain goodwill gestures in recent days, Yao said.
Without a clear strategy to tackle them, I doubt anyone should hold their breath for a breakthroughAidan Yao
The initial arrangements for the meeting came after the US announced that it would offer exemptions to 110 Chinese products, including medical equipment and key electronic components, from import tariffs. China, meanwhile, said that several companies would buy American agricultural products having already applied for exemptions from the tariffs imposed by Beijing.
Liao Qun, the chief economist at China Citic Bank International, said a change of location could pump “fresh air” into the talks.
“Shanghai is the window of China’s reform and opening up and the country’s economic heart,” Liao said. “It could be a positive change”.
Larry Hu, chief China economist of Macquarie Capital, noted that Shanghai has played a unique role in US-China relations.
“The important Shanghai Communiqué was inked in the city,” Hu said, referring to the diplomatic document signed between China and US in 1972 during president Richard Nixon’s visit to China to meet Chinese chairman Mao Zedong.
The document, which is part of the Three Joint Communiqués, paved the way for Beijing and Washington to establish official diplomatic relationships later that decade.
The Three Joint Communiqués are a collection of joint statements made by the governments of the US and China from 1972, 1979 and 1982.
CHINDIA ALERT: You'll be living in their world, very soon 