Archive for ‘threatened’

30/05/2020

US-China tensions set to worsen as moderates lose out to hardliners, observers say

  • Chinese groups calling for more ‘fighting spirit’ are getting the upper hand on those who favour calm and cooperation, government adviser says
  • From Hong Kong to Covid-19, trade to the South China Sea, Beijing and Washington are clashing on a growing number of fronts and in an increasingly aggressive way
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Moderates who favour dialogue and cooperation as a way to resolve China’s disputes with the United States are losing ground to hardline groups bent on taking the fight to Washington, according to political insiders and observers.
“There are two camps in China,” said a former state official who now serves as a government adviser and asked not to be named.
“One is stressing the combat spirit, the other is trying to relieve tensions. And the former has the upper hand.”
Relations between China and the US are under intense pressure. After Beijing moved to introduce a national security law for Hong Kong, US President Donald Trump said on Friday that Washington would begin eliminating the special policy exemptions it grants the city, as it no longer considers it autonomous from mainland China.
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
The two nations have also clashed over trade, Xinjiang, Taiwan and the South China Sea, with the US passing several acts denouncing Beijing and sanctioning Chinese officials.
China has also experienced turbulence in its relations with other countries, including Australia and members of the European Union, mostly related to the Covid-19 pandemic
 and Beijing’s efforts to position itself as a leader in the fight against the disease with its policy of “mask diplomacy”.

After Canberra appealed for an independent investigation to be carried out to determine the origins of the coronavirus, Beijing responded by imposing tariffs on imports of Australian barley, showing it is prepared to do more than just trade insults and accusations with its adversaries.

Pang Zhongying, a professor of international relations at Ocean University of China in Qingdao, said there was a worrying trend in China’s relations with other nations.

“We need political and diplomatic means to resolve the challenges we are facing, but … diplomatic methods have become undiplomatic,” he said.

“There are some who believe that problems can be solved through tough gestures, but this will never work. Without diplomacy, problems become confrontations.”

Chinese Foreign Minister Wang Yi

said during his annual press conference on the sidelines of the National People’s Congress last weekend that China and the United States must work together to prevent a new Cold War.

His words were echoed by Chinese Premier Li Keqiang, who said during a press conference after the closure of the legislative session on Thursday that the many challenges facing the China-US relations could only be resolved through cooperation.

However, the government adviser said there was often quite a chasm between what China’s leaders said and what happened in reality.

“Even though we say we do not want a Cold War, what is happening at the working level seems to be different.” he said. “The implementation of policies is not properly coordinated and often chaotic.”

Tensions between China and the US have been in a poor state since the start of a trade war almost two years ago. After multiple rounds of negotiations, the sides in January signed a phase one deal, but the positivity that created was short-lived.

In February, Beijing expelled three reporters from The Wall Street Journal over an article it deemed racist, while Washington has ramped up its military activity in the South China Sea and Taiwan Strait, and threatened to revoke the visas of Chinese students studying science and technology in the US over concerns they might be engaged in espionage.

Beijing has also used its state media and army of “Wolf Warrior” diplomats to promote its narrative, though many Chinese scholars and foreign policy advisers have said the latter’s nationalistic fervour has done more harm than good and appealed to Beijing to adopt a more conciliatory tone.
However, Hu Xijin, editor-in-chief of Chinese tabloid Global Times, said China had no option but to stare down the US, which regarded the world’s most populous nation as its main rival.
“Being contained by the US is too high a price for China to pay,” he said. “I think the best thing people can do is forget the old days of China-US ties”.

Jin Canrong, a professor of international relations at Renmin University in Beijing, wrote in a recent newspaper article that Beijing’s actions – notably enacting a national security law for Hong Kong – showed it was uncompromising and ready to stand its ground against the US.

Wu Xinbo, dean of international studies at Fudan University in Shanghai, agreed, saying relations between the two countries were likely to worsen in the run-up to the US presidential election in November and that Beijing should be prepared for a fight.

But Adam Ni, director of China Policy Centre, a think tank in Canberra, said the issue was not that the moderate camp had been sidelined, but rather Beijing’s perception of the US had changed.

“Beijing has woken up to the idea that America’s tough policy on China will continue and it is expecting an escalation of the tensions,” he said.

“The centre of gravity in terms of Beijing’s perception of the US has shifted, in the same way the US perception of China has shifted towards a more negative image”.

Beijing was simply responding in kind to the hardline, assertive manner of the US, he said.

Source: SCMP

19/02/2020

China threatened to harm Czech companies over Taiwan visit – letter

(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.

Source: Reuters

14/02/2020

India orders telcos to pay dues now, after top court threatens contempt

NEW DELHI/MUMBAI (Reuters) – The Indian government ordered mobile carriers on Friday to immediately pay billions of dollars in dues after the Supreme Court threatened the companies and officials with contempt proceedings for failing to implement an earlier ruling.

The court, which had ordered companies including Vodafone Idea (VODA.NS) and Bharti Airtel (BRTI.NS) to pay 920 billion Indian rupees ($13 billion) in overdue levies and interest by Jan. 23, last month rejected petitions seeking a review of the order it issued back in October.

“This is pure contempt, 100% contempt,” Justice Arun Mishra told lawyers for the companies and the government on Friday.

Later in the day, the Department of Telecommunications called for “immediate payments” from the telcos. A second order instructed relevant offices to stay open on Saturday to “facilitate the Telecom Licensees to make payments or contact them with respect to any matter related to that.”

The companies had contested the government’s definition of revenues subject to tax and Vodafone Idea and Bharti Airtel both flagged risks to their ability to continue as ongoing concerns following the October order. They did not immediately respond to calls seeking comment on the new ruling.

The companies, along with Reliance Jio, which is backed by Asia’s richest man, Mukesh Ambani, control more than 90% of India’s mobile market.

Jio, a relatively new entrant which has disrupted the market with its cut-price offerings, has paid its dues.

Shares in Vodafone Idea, in which Britain’s Vodafone Group (VOD.L) owns a sizable stake, closed down 24.4% after the order. The company’s future is in doubt, with Vodafone Group having said it has no plans to commit any more equity into India.

Shares in Bharti Airtel rose 4.64%, as many investors expect it will be able to survive the payment, leaving it and Jio with a potential opportunity to win market share and enjoy an effective duopoly in the sector. In a letter to the government, Bharti Airtel said it would deposit 100 billion rupees by Thursday and pay the balance “well before” the next hearing on March 17.

Justice Mishra rebuked the government for having failed to implement the court order on collecting the dues. “A desk officer in the government stays a Supreme Court order … Is there any law left in the country?,” he said.

“We will draw up contempt against everyone,” he added, implying that both company and government officials could be fined or jailed if the dues are not paid by March 17.

Analysts said the court’s move could harm the government more broadly, as well as the companies.

“It can’t be in anybody’s interest if a company as high profile as Vodafone Idea shuts shop. Also, the government’s own dues from the sector are at risk,” said Mahesh Uppal, director at ComFirst, a telecom consultancy firm.

BANKS BURDENED

Indian banks are burdened with nearly $140 billion of bad loans and face another huge hit if Vodafone Idea is forced into bankruptcy.

Banks in India are owed roughly 300 billion rupees by Vodafone Idea, according to a Macquarie report from last year.

“Banks were yet to make additional provisioning for these loans as they were expecting some sort of a relief from the court,” said Siddharth Purohit, an analyst at SMC Institutional Equities.

Banks that have the highest exposure to Vodafone Idea include State Bank of India (SBI.NS), Punjab National Bank (PNBK.NS), Canara Bank (CNBK.NS) and Bank of India (BOI.NS), among others, the Macquarie report said.

Vodafone Idea, which owes the government about $4 billion in dues related to the ruling, has seen its shares slide more than 40% since the court ruling in October.

The broader Indian stock market also reversed early gains to trade lower after the ruling as investors worried about the fallout.

Still, some analysts remained hopeful the government could appeal to the court to review its decision.

“Let’s see how the government reacts and what they do. If the government appeals to the court they could still settle it out, and we may see some positives emerge for everyone,” said a senior industry analyst, who asked not to be named.

Source: Reuters

28/09/2019

China set to join Arms Trade Treaty that Donald Trump threatened to abandon

  • Legal process under way, Beijing says after Foreign Minister Wang Yi tells United Nations China is committed to defending multilateralism
  • Any unilateral move to leave weapons control pact will have a ‘negative impact in various areas’, minister says in thinly veiled swipe at United States
China, the world’s fifth-largest weapons supplier, has signed up to a global arms control treaty. Photo: Simon Song
China, the world’s fifth-largest weapons supplier, has signed up to a global arms control treaty. Photo: Simon Song

China said it has begun preparations to join an international arms control treaty that the United States has threatened to abandon, while also warning Washington against deploying missiles in the Asia-Pacific region.

Speaking at the United Nations General Assembly in New York on Friday, Chinese Foreign Minister Wang Yi said that signing up to the Arms Trade Treaty (ATT) was further evidence of Beijing’s commitment to defending multilateralism.

US President Donald Trump

said in April that he intended to withdraw from the pact, which regulates the US$70 billion global trade in conventional arms.

The White House said at the time that the ATT “will only constrain responsible countries while allowing the irresponsible arms trade to continue”, as major arms exporters like Russia and China were not part of it.

Wang said on Friday that any unilateral move to leave the treaty would have a “negative impact in various areas”. He stopped short of naming the United States or its president.

China’s foreign ministry said in a statement on Saturday that it had begun the legal process of joining the treaty, adding that it attached great importance to the issues caused by the illegal sale and misuse of arms, and supported the aims of the ATT in seeking to regulate the international weapons trade.

Wang also spoke out against the possible deployment of ground-launched missiles in the Asia-Pacific region.

After withdrawing from the Intermediate-Range Nuclear Forces Treaty in August, the US said it was planning to deploy such weapons in Asia to counter any possible threat from China or Russia.
“[We] urge the country with the largest nuclear weapons to fulfil its special and prior responsibilities on nuclear disarmament,” Wang said, adding that “China will continue to participate in the international arms control process”.
Wang Yi spoke out against the possible deployment of ground-launched missiles in the Asia-Pacific region at the UN General Assembly in New York on Friday. Photo: AFP
Wang Yi spoke out against the possible deployment of ground-launched missiles in the Asia-Pacific region at the UN General Assembly in New York on Friday. Photo: AFP

According to figures released in May by the Stockholm International Peace Research Institute, the United States is the world’s largest arms exporter, supplying weapons worth 58 per cent more than those of its nearest competitor, Russia.

Together with France, Germany and China, the five nations accounted for 75 per cent of all weapons sold around the world between 2014 and last year, the institute said.

Although China is among the world’s big five arms suppliers, its sales – most of which go to Asia and Oceania – are dwarfed by those of the US, accounting for just 5.2 per cent of the 2014-18 total, compared to America’s 36 per cent.

Several major arms importers, including India, Australia, South Korea and Vietnam, refuse to buy arms from China for political reasons.

Beijing’s decision to join the ATT is in keeping with the image it has sought to present of China as a defender of multilateralism. The stance is also in sharp contrast to the US’ position under Trump, who has repeatedly scrapped multilateral trade agreements in favour of bilateral deals.

Since taking office in 2016, he has withdrawn the US from the Paris climate accord, the Iran nuclear deal and the Trans-Pacific Partnership.

Military observers said Beijing might seek to pressure on Washington to stay in the deal to try to maintain the strategic and military balance in the region.

Song Zhongping, a Hong Kong-based military affairs commentator, said Beijing might be trying to avoid misuse of conventional weapons.

“Beijing may want to press big exporters, such as the US and Russia, to join the deal because without proper regulations, the risk of illegal trade and misuse of conventional weapons could be running high,” he said.

“This could also threaten regional stability or even trigger unnecessary arms races.”

Adam Ni, a China specialist at Sydney’s Macquarie University, said the treaty would put some limits on the arms trade “but it would not mean that China would not be able to do deals. It will still be able to do [most deals]”.

Retired PLA colonel Yue Gang said the strategy could also improve China’s international reputation.

Source: SCMP

18/03/2019

India, Pakistan threatened to unleash missiles at each other – sources

NEW DELHI/ISLAMABAD (Reuters) – The sparring between India and Pakistan last month threatened to spiral out of control and only interventions by U.S. officials, including National Security Advisor John Bolton, headed off a bigger conflict, five sources familiar with the events said.

At one stage, India threatened to fire at least six missiles at Pakistan, and Islamabad said it would respond with its own missile strikes “three times over”, according to Western diplomats and government sources in New Delhi, Islamabad and Washington.

The way in which tensions suddenly worsened and threatened to trigger a war between the nuclear-armed nations shows how the Kashmir region, which both claim and is at the core of their enmity, remains one of the world’s most dangerous flashpoints.

The exchanges did not get beyond threats, and there was no suggestion that the missiles involved were anything more than conventional weapons, but they created consternation in official circles in Washington, Beijing and London.

Reuters has pieced together the events that led to the most serious military crisis in South Asia since 2008, as well as the concerted diplomatic efforts to get both sides to back down.

The simmering dispute erupted into conflict late last month when Indian and Pakistani warplanes engaged in a dogfight over Kashmir on Feb 27, a day after a raid by Indian jet fighters on what it said was a militant camp in Pakistan. Islamabad denied any militant camp exists in the area and said the Indian bombs exploded on an empty hillside.

In their first such clash since the last war between the two nations in 1971, Pakistan downed an Indian plane and captured its pilot after he ejected in Pakistan-controlled Kashmir.

Hours later, videos of the bloodied Indian pilot, handcuffed and blindfolded, appeared on social media, identifying himself to Pakistani interrogators, deepening anger in New Delhi.

With Prime Minister Narendra Modi facing a general election in April-May, the government was under pressure to respond.

“NO GOING BACK”

That evening, Indian National Security Adviser Ajit Doval spoke over a secure line to the head of Pakistan’s Inter Services Intelligence (ISI), Asim Munir, to tell him India was not going to back off its new campaign of “counter terrorism” even after the pilot’s capture, an Indian government source and a Western diplomat with knowledge of the conversations told Reuters in New Delhi.

Doval told Munir that India’s fight was with the militant groups that freely operated from Pakistani soil and it was prepared to escalate, said the government source.

A Pakistani government minister and a Western diplomat in Islamabad separately confirmed a specific Indian threat to use six missiles on targets inside Pakistan. They did not specify who delivered the threat or who received it, but the minister said Indian and Pakistani intelligence agencies “were communicating with each other during the fight, and even now they are communicating with each other”.

Pakistan said it would counter any Indian missile attacks with many more launches of its own, the minister told Reuters, speaking on condition of anonymity.

“We said if you will fire one missile, we will fire three. Whatever India will do, we will respond three times to that,” the Pakistani minister said.

Doval’s office did not respond to a request for comment. India was not aware of any missile threat issued to Pakistan, a government official said in reply to a Reuters request for comment.

Pakistan’s military declined to comment and Munir could not be reached for comment. Pakistan’s foreign ministry did not respond to a Reuters request for comment.

TRUMP-KIM TALKS

The crisis unfolded as U.S. President Donald Trump was trying to hammer out an agreement with North Korean leader Kim Jong Un in Hanoi over its nuclear programme.

U.S. security advisor Bolton was on the phone with Doval on the night of Feb 27 itself, and into the early hours of Feb 28, the second day of the Trump-Kim talks, in an attempt to defuse the situation, the Western diplomat in New Delhi and the Indian official said.

Later, U.S. Secretary of State Mike Pompeo, who was also in Hanoi, also called both sides to seek a way out of the crisis.

“Secretary Pompeo led diplomatic engagement directly, and that played an essential role in de-escalating the tensions between the two sides,” State Department deputy spokesperson Robert Palladino said in a briefing in Washington on March 5.

A State Department official declined comment when asked if they knew of the threats to use missiles.

Pompeo spoke to Doval, the Indian and Pakistani Foreign Ministers Sushma Swaraj and Shah Mahmood Qureshi, respectively, Palladino said.

U.S. Indo-Pacific Command Admiral Phil Davidson told reporters in Singapore last week that he had separately been in touch with the Indian navy chief, Sunil Lanba, throughout the crisis. There was no immediate response from Lanba’s office to a question on the nature of the conversations.

U.S. efforts were focused on securing the quick release of the Indian pilot by Pakistan and winning an assurance from India it would pull back from the threat to fire rockets, the Western diplomat in New Delhi and officials in Washington said.

“We made a lot of effort to get the international community involved in encouraging the two sides to de-escalate the situation because we fully realized how dangerous it was,” said a senior Trump administration official.

The Pakistani minister said China and the United Arab Emirates also intervened. China’s foreign ministry did not respond to requests for comment. The government of the UAE said Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan held talks with both Modi and Pakistan Prime Minister Imran Khan.

India has not given details, but has said it was in touch with major powers during the conflict.

On the morning of Feb 28, Trump told reporters in Hanoi that he expected the crisis to end soon.

“They have been going at it and we have been involved in trying to have them stop. Hopefully that is going to be coming to an end.”

Later that afternoon, Khan announced in Pakistan’s parliament that the Indian pilot would be released, and he was sent back the next day.

“I know last night there was a threat there could a missile attack on Pakistan, which got defused,” Khan said. “I know, our army stood prepared for retaliation of that attack.”

The two countries have gone to war three times since both gained independence in 1947, the last time in 1971. The two armies are trading fire along the line of control that separates them in Kashmir, but the tensions appear contained for now.

Diplomatic experts said that the latest crisis underlined the chances of misread signals and unpredictability in the ties between the nuclear-armed rivals, and the huge dangers. It still was not clear whether India had targeted a militant camp in Pakistan and whether there were any casualties, they said.

“Indian and Pakistani leaders have long evinced confidence that they can understand each other’s deterrence signals and can de-escalate at will,” said Joshua White, a former White House official who is now at Johns Hopkins.

“The fact that some of the most basic facts, intentions and attempted strategic signals of this crisis are still shrouded in mystery … should be a sobering reminder that neither country is in a position to easily control a crisis once it begins.”.

Source: Reuters

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