Macron to urge China’s Xi to ditch support for Putin; Everbright’s ex-chairman Li Xiaopeng probed as China’s banking crackdown intensifies
European leaders head to Beijing with hope of driving peace in Ukraine, while balancing business ties; Taiwan president set for historic meeting with US House Speaker in California
Welcome to this issue of The China Brief. Today is April 5, 2023. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources and exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
CNN
French President Emmanuel Macron and European Commission President Ursula von der Leyen traveled to Beijing this week to try and persuade China to do more for peace in Ukraine. Macron, who around 50 business leaders accompanied, held talks with Chinese leaders as Europe scrambled to find peace in Russia’s devastating war in Ukraine. For China, the visit provides an opportunity to mend its image following three years of pandemic-related disruption. The aim is to find ways to “identify solutions” to end the war in Ukraine.
The trip follows a state visit by Xi Jinping to Russia less than a month ago, where he and Vladimir Putin affirmed their countries’ alignment on a host of issues. It is unclear whether Beijing will depart from the stance in a proposal earlier this year for a “political solution” to the Ukraine conflict, which European leaders criticized, including von der Leyen. In addition to navigating key geopolitical issues, there are extensive business interests permeating the relationship between China and the visiting European dignitaries.
Chinese Naval Surveillance Ship Docks in South African Port
Bloomberg
While South Africa’s largest trading partner is China, the docking of the surveillance ship, Yuan Wang 5, that can track rocket and spacecraft launches in the Port of Durban this week, less than two months after South Africa held naval exercises with China and Russia, has led to concerns that South Africa is moving closer to Russia and China, despite the bulk of its trade being with Western nations. Although the Yuan Wang 5 is not new, India recently expressed concern when the vessel docked at Hambantota port in Sri Lanka. South Africa has courted criticism from the US and its allies recently over its stance on Ukraine, and its consideration of whether to allow Russian President, Vladimir Putin, to attend a BRICS bloc summit in August, is causing disquiet amongst Western nations.
Chinese leaders stress infrastructure, supply chains in talks with ASEAN powers
South China Morning Post
Top-ranking Chinese officials have called for greater infrastructure and supply chain cooperation with Indonesia and Vietnam, two of Southeast Asia's strongest economies. Vietnamese Prime Minister Pham Minh Chinh and Chinese Premier Li Qiang spoke by phone on Tuesday. Li said China and Vietnam should work together to build a mutually beneficial and stable industrial supply chain system. He added that the two countries should continue to promote the Belt and Road Initiative, China’s strategy to boost global trade and infrastructure connections, and the Two Corridors, One Economic Circle initiative – an economic zone linking the border regions China and Vietnam. Meanwhile, China’s top diplomat Wang Yi held talks in Beijing with Indonesia’s coordinator for cooperation with China. Wang encouraged Indonesia to further engage with China’s multilateral economic initiatives, and urged both countries to deepen cooperation in infrastructure and maritime affairs while strengthening the development of finance, the green economy, and food security.
Newly enlarged NATO talks China and Ukraine
DW
NATO representatives at a summit held in Belgium have expressed concerns about the deteriorating relationship between China and Russia, discussing the implications of Chinese President Xi Jinping’s visit to Moscow last week. Fears are being raised over the possibility of a potential supply of Chinese arms to Russia, which could aid them in the attack on neighboring Ukraine, as well as the possible support of Russia over China’s intended aggressive action against Taiwan. What has been highlighted further by these discussions is the need for the organization to develop its relations with similar-minded worldwide partners, especially with ongoing security and political concerns in Asia and Europe. Countries at the summit included Australia, New Zealand, South Korea, and Japan, all of which attended the meetings to discuss issues in the Indo-Pacific region resulting from the situation in Ukraine. Additionally, Finland became the 31st member of NATO at the summit.
Elsewhere, discussions also took place on encouraging defense spending and the need to make the current pledge of spending GDPs to defense of 2% a minimum, which could be used to counteract increased Russian aggression beyond Ukraine.
Made-in-India iPhones surge as Apple moves production away from China
South China Morning Post
The volume of iPhones made in India for Apple accelerated by 65% YoY last year, while the value grew by 162%, according to market research by Counterpoint for 2022. This placed Apple at 25% of India’s total smartphone shipments, doubling the amount from the previous year, as it aims to diversify its supply chain from China. Contract manufacturer Foxconn is reportedly looking to invest $700m in a new plant in India to expand local production. A source with direct knowledge of the matter suggests Foxconn will use more than $200m for a new India AirPods plant in the southern Indian state of Telangana. Reports suggest that by 2027, India is predicted to assemble up to 50% of Apple’s iPhones, up from less than 5%.
Macron to urge China’s Xi to ditch support for Putin over Ukraine war
Financial Times
The French President Emmanuel Macron is reportedly urging China's President Xi to use his influence with Vladimir Putin to withdraw Russian troops from Ukraine. Macron’s visit to Beijing will come after he called US President Joe Biden in a move which saw the leaders "reiterated their steadfast support for Ukraine in the face of Russia’s ongoing aggression", according to the White House. Macron will be joined by European Commission president Ursula von der Leyen, but experts expect the Chinese leader is unlikely to be swayed to drop his support of Putin. The Prime Minister of Ukraine, Denys Shmyhal, previously called on China to join Western countries in its opposition to the annexation of Crimea by the Russian Federation. China has described its position as that of a “non-aligned broker”.
Everbright’s ex-chairman is probed as China’s banking crackdown intensifies
South China Morning Post
An investigation is underway into the former chairman and party chief of state-owned company China Everbright Group as part of an escalating government crackdown on corruption in the finance business. Li Xiaopeng is suspected of "serious violations of discipline and law", according to a brief statement by the Central Commission for Discipline Inspection and the State Supervision Commission. The announcement follows the launch of further checks of more than 30 state-owned firms by the anti-graft body. As part of this inspection, it will also examine five previously targeted financial companies, including China Everbright Group. Since late February, at least 20 financial executives have been either investigated or penalized.
China's banking industry, worth $60tn, has been shaken by far-reaching clampdowns aimed at reducing risk, restoring growth, and improving relations with foreign business and private industry. In the latest crackdown, top banking executives were warned late last week that the action was not yet over as the country set out to probe the most senior state banker in almost two decades. Officials from China's Banking and Insurance Regulatory Commission and the anti-graft body called executives from at least six big banks to address the inquiry into the former chairman of Bank of China, Liu Liange.
Top Saudi, Iranian diplomats to meet in China, say media, officials
Reuters
The foreign ministers of Saudi Arabia and Iran will hold their first official meeting in about seven years today. The meeting in Beijing, brokered by China last month, aims to hash out next steps in the diplomatic rapprochement between the two countries. Riyadh and Tehran last month announced the restoration of relations and the reopening of embassies. The move could be significant for Saudi security, as it seeks to establish closer ties with its neighbor and reduce the likelihood of Iranian-backed strikes on the kingdom’s infrastructure, including its oil sector. However, tensions are high after a missile attack by the Iran-aligned Houthi movement in Yemen injured dozens of people in the city of Marib on Sunday. The attack comes just days after Saudi Arabia announced a new peace initiative to end the conflict in Yemen.
Taiwan president set for historic meeting with US House Speaker in California
Reuters
Taiwanese President Tsai Ing-wen is due to meet US House Speaker Kevin McCarthy, in the first such meeting between a Taiwanese leader and senior US politician on American soil since the US switched diplomatic recognition from Taipei to Beijing in 1979. The visit has aroused anger in China, which claims the self-ruled island as its own territory. Tsai, who is due to visit the Ronald Reagan Presidential Library in Simi Valley, California, near Los Angeles, is traveling to Central America after a stopover in New York. McCarthy had previously suggested visiting Taiwan, a potentially far more provocative move. However, China responded furiously to such a visit by McCarthy's Democratic predecessor Nancy Pelosi in August of this year, and has promised to "resolutely defend Chinese sovereignty" as it "closely monitors" the meeting between McCarthy and Tsai.
Foxconn founder in fresh run for Taiwan presidency
BBC
Terry Gou, founder of Apple supplier Foxconn, has announced a second run for the presidential nomination for Taiwan's main opposition party, the Kuomintang (KMT),which traditionally favours close ties with China. After stepping down as Foxconn's boss, he failed to be nominated in 2019. With President Tsai Ing-wen in the US, Gou said that the only way of avoiding a war with China was to lessen tensions between Washington and Beijing and remove Taiwan's ruling Democratic Progressive Party (DPP) from office. Beijing considers Taiwan a self-ruled breakaway province, but Taiwan regards itself as a separate entity with its own democratically elected leaders. Gou is expected to take a more China-friendly approach than the current administration if he successfully bids for the presidency.
Xi courts Macron hoping to put distance between Europe and US
The Sydney Morning Herald
French President Emmanuel Macron is visiting China to improve business relations with the world's second-largest economy. Some analysts see the three-day visit as a sign of China distancing itself from the US, its previous close ally. It also indicates that the government is trying to strengthen its relationship with France, particularly as Angela Merkel, Germany's former chancellor, has stepped down. Macron's visit comes as relations between the US and China are at a low, and China is trying to prevent Europe from siding with the US on issues such as export controls of key technologies.
Macron's visit is significant as he is one of the most influential politicians in Europe, in China's view. Representatives from companies including energy firm Electricite de France, waste and water management firm Veolia Environnement, and train maker Alstom are accompanying him on the trip, and the European plane maker Airbus is working to secure a multi-billion-dollar sale of wide-body jets to China in a deal that could come together as soon as this week.
We should learn from rival attempts to write pandemic history
Financial Times
The origins of the COVID-19 genome sequence are in dispute, with an article in the journal Science calling into question whether the Fudan University consortium led by Professor Zhang Yong-Zhen was the first to publish the data. The Global Initiative on Sharing Avian Influenza Data (Gisaid) has claimed it had shared data on COVID-19 genomes more than 24 hours before Yong-Zhen’s team. The controversy over which team released data first highlights how data sharing has become a political minefield during the pandemic. Some scientists are reportedly puzzled by Gisaid’s claim, with no one they know has got the first sequence from its website.
The COVID-19 genome was highly sought after for clinical studies, vaccine development, and broader research to get underway to combat the virus. Clinicians, researchers, and governments all wanted it, and it was eagerly awaited. However, it ended up being highly politicized, almost as if a race was on to be the first to claim credit, giving an added dimension to the difficulty of getting a handle on the spread of the virus. The controversy over when and where the genome was published is important for accurately recording COVID-19 history.
The importance of the genome was such that when the WHO first received it, it expected it would be made publicly available as soon as possible. The organization originally recorded that the data was shared publicly on 12 January 2020, although Gisaid disputes the WHO's timeline. The journal Science article highlights how much people are downplaying the significance of the genome's origins, reminding us of its importance because of its use in the development of vaccines and diagnostics.
Anwar's Beijing trip highlights economic ties, South China Sea
Nikkei Asia
Malaysia's Prime Minister, Anwar Ibrahim, undertook his first official visit to China last week, emphasizing the growing economic relationship between the two countries. During his visit, Ibrahim held meetings with President Xi Jinping and Premier Li Qiang, as well as attended the China-led Boao Forum for Asia, securing significant investments and partnerships from China on the projects key to Malaysia's industrial output. However, the Malaysian Prime Minister stated that his country would not bow to Beijing's wishes on issues of energy exploration in the South China Sea, where the latter has been accused of increasing maritime activities.
Anwar Ibrahim's comments on oil and gas exploration in the South China Sea suggest a hardening of Malaysia's position concerning some of China's more aggressive maritime policies. The South China Sea remains a contentious arena, as several countries in the region, including Taiwan, China, the Philippines, Vietnam, and Malaysia, claim ownership of portions of the waterway. Widespread Chinese activity in the South China Sea, including the building of artificial islands, has been viewed with suspicion by other nations, with accusations of territorial expansionism being leveled at Beijing.
In contrast, the economic relationship between China and Malaysia has continued to deepen. Malaysia is one of several nations in the Association of Southeast Asian Nations (ASEAN) that have partnered with China under its Belt and Road Initiative, with trade and investment cooperation between China and Malaysia standing at over $150bn annually. However, as China's role in the region continues to grow, it remains to be seen how countries like Malaysia will balance their economic relationships against their broader geopolitical interests.
China's release of Japanese citizens will be the first step toward stable relations
Nikkei Asia
The recent visit to China by Japan’s foreign minister, Yoshimasa Hayashi, to meet with top Beijing officials marks a potential boost to a problematic relationship between the two Asian nations. The meeting with newly appointed Premier Li Qiang, top diplomat Wang Yi, and Foreign Minister Qin Gang is a positive step even though unresolved issues remain. The timing of the visit is noteworthy given the rising levels of concern in the region surrounding the potential for escalation between North Korea and the United States.
As part of future cooperation, Beijing has been urged to release all detained Japanese nationals, including those working for Japanese companies. Their detention prevents foreign employers from sending company executives and employees to China, undermining commercial ties. Both countries have much to gain from cooperation, including the possibility of jointly providing infrastructure funding to developing countries in Southeast Asia and beyond as part of the recently announced $9 billion infrastructure fund. For Japan, such cooperation could also extend to China lifting its ban on Japanese food imports, imposed due to concerns over Fukushima radiation following the 2011 nuclear disaster.
The book "Xi Jinping: The World's Most Powerful Man and His Subordinates" offers a comprehensive analysis of Xi Jinping's power structure, delving into his consolidation of control over the Communist Party of China, the military, and the economy and exploring the systemic changes he has implemented. The book provides a detailed account of the personnel layout of the Communist Party of China's Central Political Bureau and the Central Secretariat, focusing on the 26 individuals who hold the most powerful and important positions in China, and provides readers with a clear understanding of the direction of high-level politics in China's future. The book is available on Amazon in Kindle eBook and paperback formats and in multiple languages.
Stay informed about the latest news, analysis, and policy briefs from across the globe related to China with the China brief. Our team aggregates, synthesizes, and summarizes the most critical information from various sources, including media outlets, think tanks, government agencies, and industry experts.
Our mission is to provide easily accessible and critically valuable information tailored to your field of interest. We understand the significance of staying up-to-date on developments related to China and aim to make this information understandable for our readers.
Join the conversation and stay informed about the latest news and developments related to China by visiting our website at https://6do.world.