Category: China

  • US, EU Sanctions Extend to China Firms Supporting Ukraine War

    US, EU Sanctions Extend to China Firms Supporting Ukraine War

    While primarily targeting Russians and Russian entities, US and EU sanctions also included mainland Chinese individuals and firms, including those in Hong Kong, for aiding the Russian military.

    The sanctions imposed by the US and the European Union on Friday, against several people and companies for supporting Russia’s war in Ukraine also included several companies from China, the Voice of America (VOA) reported.

    Although most of the sanctions were against Russians and Russian firms, the US and EU measures also included Chinese individuals and companies based in mainland Chinese cities as well as Hong Kong for supplying the Russian military.

    Moreover, they also included sanctions against Russian prison officials over the suspicious death of opposition leader Alexey Navalny.

    Russia’s foreign ministry denounced the sanctions as “illegal” and said it would respond by banning some EU citizens who provided military assistance to Ukraine from entering Russia, according to VOA.

    Chinese officials did not issue an immediate response to the sanctions.

    However, China’s foreign ministry spokesperson, Mao Ning, commented on the expected sanctions on Tuesday at a regular briefing and said China follows an “objective and impartial position on the Ukraine crisis” and has “worked actively to promote peace talks.”

    She further said that they “have not sat idly by, still less exploited the situation for selfish gains.”

    China’s foreign ministry spokesperson, Mao Ning (Screengrab from X)

    Moreover, Ukrainian officials and media reports have also accused Chinese companies of supplying key electronics and dual-use technologies, including drone components, to Russia’s military since its invasion of Ukraine two years ago. However, Beijing has denied their claim, according to VOA.

    European Commission President Ursula von der Leyen preempted Friday’s official announcement on social media, stating, “I welcome the agreement on our 13th sanctions package against Russia. We must keep degrading Putin’s war machine. With 2000 listings in total, we keep the pressure high on the Kremlin. We are also further cutting Russia’s access to drones.”

    Reportedly, the sanctioned individuals and companies are banned from doing business with US or European firms.

    However, legal and political analysts disagreed on the effectiveness of the sanctions.

    Lawyer Mark Handley, a partner at the Philadelphia-headquartered law firm Duane Morris LLP, said being sanctioned will certainly affect their international business. “Things like international insurance companies or shipping could get very complicated once they are on the sanctions list.”

    However, Pieter Cleppe, editor-in-chief for BrusselsReport.eu, told VOA, “Historical research has shown that sanctions mostly fail, especially when prolonged, as is the case with Russia. The targeted country learns to cope with them.”

    He added, “While sanctions may impoverish ordinary Russians, they have failed to halt the Russian offensive, which should be the goal.”

    The Yermak-McFaul International Working Group on Russian Sanctions and the Ukrainian think tank KSE Institute published a report in January, showing that sanctioned technology has still been reaching Russia’s military through third-country intermediaries, which the EU and the US hope the fresh measures will stop.

    Ukraine President Volodymyr Zelensky and European Commission President Ursula von der Leyen.(photo;twitter.com/vonderleyen)

    Junhua Zhang, senior assistant researcher at the Brussels-based European Institute for Asian Studies, said the EU’s highest expectation “is for China to align with the EU in resisting Russia’s aggression, which is unrealistic. The EU’s minimum expectation is for Chinese companies not to work for Russia, but strictly speaking, only fools would have such an expectation.”

    “Just consider (Chinese President) Xi Jinping sees Putin as his best friend, and those below him will act accordingly, a point that Europeans also recognize,” Zhang added, as reported by VOA.

    However, others argued that sanctions on Chinese firms could push Beijing to reconsider.

    Aliona Hlivco, a former Ukrainian lawmaker and managing director at the London-based think tank the Henry Jackson Society, said that sanctions against Chinese companies could prove useful in deterring Russia’s war on Ukraine.

    “China is currently attempting to improve relations with the West, so reinforcing China’s compliance with international norms could be opportune,” Hlivco said.

    It is pertinent to mention that the EU is China’s second-largest trading bloc partner after the Association of Southeast Asian Nations.

    In 2023, while Russia lost most of its European market owing to the sanctions, the bilateral trade between China and Russia hit a record high of USD 240 billion, a year-on-year increase of 26.3 per cent, VOA reported.

    However, trade between the US and China in 2023 fell for the first time since 2019 by 11 per cent to USD 664 billion, according to customs data.

    According to the Commerce Department, the US imported more goods from Mexico than China for the first time in 20 years. (ANI)

  • China’s Infiltration Tactics in Central Asia

    China’s Infiltration Tactics in Central Asia

    CUS’s 106-page report analyses China’s encroachment in Central Asia via Shanghai Cooperation Organisation and Belt and Road Initiative….reports Asian Lite News

    The Centre for Uyghur Studies (CUS), an institute that combines academic research and human rights advocacy and is focused on Uyghur-related studies and activities, released a report on Thursday highlighting the effects and tactics employed by China to infiltrate Central Asia.

    According to a press statement released by CUS, the 106-page report analyses the strong role of two major entities belonging to China, namely the Shanghai Cooperation Organisation and China’s ambitious Belt and Road Initiative (BRI), which serve as the cornerstones for China’s increasing encroachment into the region.

    The statement further states the factors influencing the use of East Turkistan as a corridor and its geopolitical implications. Furthermore, the report also extends to China’s burgeoning presence in Central Asian countries through large-scale infrastructure projects, enhanced bilateral trade, and collaborative security measures. An important aspect of this study is the investigation of China’s soft power strategies in shaping regional dynamics.

    Highlighting this, the report stated that “The Shanghai Cooperation Organization (SCO) has provided China with a legal status and a stable mechanism for active military activity in the region, and the newly established China-Central Asia Summit has further enhanced China`s political position in the region. The role of Central Asia is vital in the < The report also emphasizes the multifaceted consequences of these deepening bilateral relations, and how economic engagements, particularly in infrastructure and trade, have led some Central Asian countries into a potential debt trap, fostering a perilous dependence on China. The report also stresses the position of the democratic countries, surrounding China over the genocide of ethnic minorities like Uyghur and Turkic Muslims in East Turkistan, as China currently has political and economic leverage on them.

    The report also sheds light on the alarming human rights abuses linked to these relationships, raising critical questions about the ethical implications of such partnerships and CCP’s exporting corruption through BRI. Additionally, China’s support and bolstering of authoritarian regimes in the region are critically examined, probing the impact on regional governance and political stability.

    Additionally, the report even delves into unraveling the complex web of economic, diplomatic, and security ties, and their profound implications for the region’s future and its place in global geopolitics. While highlighting the genocide inflicted by China on the Uyghur community, it stated that “the Chinese Communist Party has accused those who recognize the Uyghur Genocide in East Turkistan or states that speak out about the Uyghur Genocide of interfering in their internal affairs. It explains this argument with the principle of noninterference in internal affairs. However, these analyses to date have revealed that China`s principle of non-interference in internal affairs actually means supporting authoritarian regimes all over the world, especially in Central Asian countries. This perspective, which ignores universal international rules, also applies to the relations between China and Central Asia”.

    Conclusively, the report reveals a multifaceted and deeply impactful narrative of China`s infiltration into Central Asia. Through a combination of diplomatic initiatives, economic investments, and security alliances, China has successfully expanded its influence in this strategically important region.

    The Shanghai Cooperation Organization and the Belt and Road Initiative have emerged as critical instruments in this expansion, facilitating infrastructure development, trade, and regional cooperation. However, this growing influence has not been without its challenges and controversies.

    Taiwan-China flag

    Over 80% of Taiwanese Support Status Quo with China

    More than 80 per cent of Taiwanese people want to maintain the status quo with China, with those preferring to keep Taiwan’s current status indefinitely rising sharply, while those who want independence have been dropping since 2020, according to the results of a survey released on Friday, Central News Agency Taiwan reported.

    In the survey titled “Changes in the Unification-Independence Stances of Taiwanese,” National Chengchi University’s Election Study Center, which has tracked the annual change in Taiwanese residents’ stance on the issue from 1994-2023, said it saw increasing support for the continuation of cross-strait status quo.

    The three most preferred choices in 2023 were: “maintain the status quo indefinitely” (33.2 per cent), “maintain the status quo, decide at a later date” (27.9 per cent) and “maintain the status quo, move toward independence” (21.5 per cent), according to the Center.

    Added together, those three categories of people who either want to maintain the status quo for now or indefinitely accounted for 82.6 per cent of the total, Central News Agency Taiwan reported.

    The least preferred option was “unification as soon as possible,” which had never exceeded 5 per cent since the survey has been conducted and stood at only 1.2 per cent in 2023, according to the findings.

    That category of people who want to “maintain the status quo, move toward unification,” has dropped from the third highest percentage overall, or 15.6 per cent, in 1994, to 6.2 per cent in 2023.

    Also, in 2023, only 3.8 per cent of respondents expressed a desire for Taiwan’s immediate independence, making it the second least preferred option overall, with support over the decades never exceeding 7.8 per cent.

    Central News Agency Taiwan reported that the percentage of people who want independence now and those who want it later have been steadily dropping since 2020. The two groups added together fell from a high of 32.1 per cent in 2020 to 25.3 per cent last year.

    The fastest growing category of people were those who want to maintain the status quo indefinitely; it rose from 9.8 per cent in 1994 to 33.2 per cent last year, rising sharply since 2020.

    It surpassed those who favored “maintain status quo, decide at later date” for the first time in 2022.

    This survey was released in tandem with another one that tracked the year-on-year changes in how Taiwanese people identify themselves (as Taiwanese or Chinese) between 1992 and 2023.

    That second survey showed that 61.7 per cent of Taiwanese in 2023 identified themselves as Taiwanese, falling a little from the record high of 64.3 per cent seen in 2020. That self-identification preference has ballooned from 17.6 per cent in 1992 to more than threefold last year, Central News Agency Taiwan reported.

    Last year, around one third of respondents considered themselves both Taiwanese and Chinese, continuing a general downward trend from 46.4 per cent in 1992 to 32 per cent in 2023. But last year those who considered themselves to be Taiwanese and Chinese rose slightly from the record low of 29.9 per cent in 2020.

    In contrast, significantly fewer people consider themselves to be simply Chinese, with the number falling from 25.5 per cent to 2.4 per cent over the past 30 years.

    Only 3.9 per cent of respondents showed no response in 2023, down from 10.5 per cent in 1992.

    According to the center, the surveys were conducted via telephone questionaires with respondents ranging from 1,209 to 34,854 per year.

    The center said it used key sample variables to weight the sample’s partial characters such as sex, age, and education through an iterated (or raking) process to ensure the sample structure is representative of the population.

    It did not provide the confidence level and margin of error. (ANI)

    ALSO READ: China Instilling ‘Panic’ in Taiwan Amid Leadership Shift

  • Taiwan Minister Urges Vessels to Ignore Chinese Coast Guard

    Taiwan Minister Urges Vessels to Ignore Chinese Coast Guard

    Following a Taiwanese tour boat, the ‘King Xia,’ drifting into Chinese territorial waters, it was intercepted by a Chinese Coast Guard ship, prompting Kuan Bi-ling’s response….reports Asian Lite News

    Taiwan’s Ocean Affairs Council (OAC) Minister Kuan Bi-ling has said that Taiwanese vessels should not stop for Chinese coast guard ships after an incident involving a Taiwanese sightseeing boat, Taiwan News reported.

    Kuan Bi-ling’s statement comes after a Taiwanese tour boat in Kinmen, the ‘King Xia,’ that strayed near Chinese territorial waters was intercepted by a Chinese Coast Guard ship and boarded by Chinese personnel on February 19.

    Kuan Bi-ling on Tuesday called the incident “regrettable” and emphasised that Taiwanese vessels need not stop for Chinese coast guard ships and should instead get in touch with the Ocean Affairs Council for assistance, according to the Taiwan News report.

    In her remarks at the Legislative Yuan session on Tuesday, Kuan said tour boat ‘King Xia’ was on a two-hour sightseeing trip in the waters around Kinmen. She said Chinese tour ships carried out similar trips in the area and Taiwan does not consider these journeys to be illegal activities.

    She noted that if a tour boat from China crosses into Taiwanese waters, the Coast Guard Administration (CGA) would consider it as a non-violating and unintentional entry and they would only request for it to leave.

    She stated that the boarding of the Taiwanese vessel by the Chinese coast guard “caused people to panic, and was not in line with people’s interests.”

    She said that King Xia had come relatively close to China’s territorial waters, based on the “peaceful situation in the strait and goodwill between the two sides,” and expressed regret over the incident. She stated that the standard operating procedure for inspecting Taiwanese vessels is clear, even if forcefully expelled from any sea area, as long as a fishing boat notifies the OAC, assistance will be provided.

    Kuan said the CGA will deploy ships between the foreign vessel and the Taiwanese vessel, hoping to stop the foreign ship from carrying out inspections. She announced that her agency would educate Taiwanese ship captains not to stop if asked for inspection by Chinese coast guard ships and instead immediately notify the OAC.

    According to Kuan, the CGA during the incident on Monday promptly responded upon seeing the situation over radar. She said that the CGA will assist whenever a vessel is spotted over radar, surveillance, and lookout systems, even if the vessel has not informed them. She stressed that this is not meant as a “challenge,” but rather as an effort to protect all people at sea, regardless of their nationality.

    According to Taiwan News report, a Taiwanese cruise ship was escorted back to Kinmen Monday after being boarded and inspected by Chinese coast guard personnel, according to the Coast Guard Administration (CGA), Focus Taiwan reported.

    The sightseeing vessel King Xia which had 11 crew members and 23 passengers was 2.8 nautical miles northwest of Kinmen’s Wushajiao when it was intercepted by two Chinese coast guard boats at around 4:47 pm, the CGA said in a news release.

    Six Chinese officers boarded the Taiwanese vessel and proceeded to inspect the boat asking to see the documents of crew members, it said, adding that the Chinese personnel then returned to their boats and left the King Xia at 5:19 pm, as reported by Focus Taiwan.

    The PP-10039 coastguard patrol boat was dispatched to the scene when the Chinese coast guard boats were spotted on radar, the CGA said.

    The vessel reached the King Xia at 5:33 pm and was escorted back to Shuitou Port from where it departed earlier in the afternoon for a tour around Kinmen waters, the Taiwanese coast guard said.

    According to the CGA, the King Xia apparently veered slightly off course at the time due to the multiple shoals near Wushajiao.

    The coast guard said in the past there have been many incidents in which Chinese tourist vessels entered Taiwan-held waters near Kinmen by mistake but it did not board them as it was clearly not deliberate and instead just issued warnings.

    Meanwhile, the CGA called on China to uphold peace and rationality and jointly maintain tranquility in the waters around Xiamen and Kinmen. At the same time, it also reminded Taiwanese operators to avoid going near Chinese waters when engaging in maritime-related activities. (ANI)

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  • China Instilling ‘Panic’ in Taiwan Amid Leadership Shift

    China Instilling ‘Panic’ in Taiwan Amid Leadership Shift

    The unprecedented encounter with Chinese law enforcement at a time of heightened tension between Beijing and Taipei startled Taiwanese passengers on board…reports Asian Lite News

    The recent tense episodes between China and Taiwan are part of Beijing’s ‘big plan’ to trigger panic in Taiwan, which has recently given mandate to Lai Ching-te, who is a staunch defender of Taiwanese identity, CNN reported.

    In a recent episode, King Xia, a Taiwanese tourist boat,carrying 23 passengers was navigating around Taiwan’s Kinmen Islands when it was intercepted by two Chinese coast guard vessels near China’s southeastern coast.

    Six Chinese officers swooped on board and carried out a “forced” inspection that lasted about half an hour. They checked the vessel’s route plan, certificates, and licenses of its 11 crew members, according to Taiwan’s coast guard, which said King Xia had “veered toward” the Chinese side of the water to avoid shoals.

    The unprecedented encounter with Chinese law enforcement at a time of heightened tension between Beijing and Taipei startled Taiwanese passengers on board, CNN reported.

    “It’s super scary,” a passenger told Taiwan’s United Daily News upon returning to shore. “(I was) so afraid that I wouldn’t be able to come back to Taiwan.”

    Kuan Bi-ling, head of Taiwan’s Ocean Affairs Council, said Tuesday the incident triggered “panic” among the Taiwanese public.

    Notably, for years, sightseeing boat tours between Kinmen and Xiamen, the closest city on the Chinese mainland, have offered Taiwanese tourists a chance to gaze at China’s dazzling skyline without the hassle of border checks. China also operates similar tour boats for its citizens.

    But the popular route has now been caught up in rising tensions as China’s coast guard has ramped up patrols in the area. According to analysts, this is Beijing’s latest effort to tilt the status quo in its favour by undermining Taiwan’s control of the waters.

    The escalation came after two Chinese fishermen drowned last week when their speedboat capsized during a pursuit by Taiwan’s coast guard, who accused them of ‘trespassing’ into prohibited waters around Kinmen.

    China blamed Taiwan’s ruling Democratic Progressive Party (DPP) for the deaths and seized on the opportunity to expand its presence in the waters.

    Since the weekend, Beijing has denied Taipei’s designation of “prohibited or restricted waters” near Kinmen, while its coast guard has launched “regular patrols” in waters around the islands to step up law enforcement, CNN reported.

    Ian Chong, a political scientist at the National University of Singapore, said the latest measures are part of China’s “grey zone” tactics, referring to coercive or aggressive state actions that stop short of open warfare – something Beijing has used increasingly in recent years in the East and South China Seas, as well as toward Taiwan.

    The inspection of a Taiwanese tour boat by China’s coast guard was meant to provoke Taiwan and see if it would either escalate or accept this sort of behaviour as given.

    “(The Chinese coast guard) chose a tourist vessel because it’s high profile – you would expect lots of people on the boat with cameras and phones,” he said. “They are trying to erode and contest Taiwan’s ability to administer those waters.”

    Taiwan’s coast guard has said it will continue to enforce the law in waters it controls and “flexibly adjust its operations to ensure peace and security.”

    Kuan, head of Taiwan’s Ocean Affairs Council, said Taiwan authorities would “educate” Taiwanese boat captains that they don’t need to stop for Chinese coast guard inspections.

    “In such instances, they should immediately notify the council for assistance,” she said.

    Meanwhile, the stakes are high, as the increased presence and closer proximity of Chinese and Taiwanese coast guard vessels raise the spectre of miscalculations that could potentially spiral into open conflict, according to CNN.

    Speaking to reporters about the inspection by the Chinese coast guard, Taiwan’s Defense Minister Chiu Kuo-kcheng highlighted such risks, saying the defence ministry is “very concerned” about potential miscalculations.

    He further said that Taiwan’s military would not “proactively intervene” in the incident to avoid further escalating tensions.

    Ever since DPP candidate Lai Ching-te won the Taiwanese presidential polls in a historic third consecutive term, Beijing has upped its ante to increase pressure on Taipei.

    Days after the election, Beijing poached one of Taipei’s few remaining diplomatic allies, the Pacific Island nation of Nauru.

    Last month, Taiwan also protested against China’s “unilateral” adjustment of a flight path that could result in civilian aircraft flying closer to the sensitive Taiwan Strait median line, adding pressure on Taipei’s aviation safety and aerial defence, CNN reported.

    The median line has long served as an informal demarcation between China and Taiwan, which Beijing claims as its own territory. China does not formally recognize the existence of such a line but has largely respected it until recent years.

    Since former US House speaker Nancy Pelosi’s visit to Taipei in 2022, Chinese military jets have regularly flown over the median line as Beijing ramps up military pressure on the self-ruled democracy. (ANI)

    ALSO READ: India-China Hold Border Talks, Commit to Peace, Tranquillity

  • India-China Hold Border Talks, Commit to Peace, Tranquillity

    India-China Hold Border Talks, Commit to Peace, Tranquillity

    The two sides also shared their perspectives on this in the talks held in a friendly and cordinal atmosphere….reports Asian Lite News

    India and China held the 21st round Corps Commander level meeting on Monday at the Chushul-Moldo border to defuse tensions along the Line of Actual Control (LAC) in Eastern Ladakh, Ministry of External Affairs (MEA) said in a statement.

    “The 21st round of India-China Corps Commander Level Meeting was held at Chushul-Moldo border meeting point on 19th February 2024. The discussions built on the previous rounds, seeking complete disengagement in the remaining areas along the LAC in Eastern Ladakh as an essential basis for restoration of peace and tranquillity in the India-China border areas,” the official statement read.

    The two sides also shared their perspectives on this in the talks held in a friendly and cordinal atmosphere.

    “The two sides have agreed to maintain communication on the way ahead through the relevant military and diplomatic mechanisms. They also committed to maintain peace and tranquility on the ground in the border areas in the interim,” statement added.

    Earlier, held the 20th round of Corps Commander-level talks at Chushul as part of the ongoing efforts for overall disengagement and de-escalation to resolve the stand-off in eastern Ladakh.

    The meeting was held at the Chushul-Moldo border meeting point on the Indian side on October 9-10.

    Earlier last month, India, while reiterating its long-standing position on China, said the two countries continue to engage on the diplomatic and military sides for some sort of a resolution.

    “India’s position on China is very well known. It is a relationship, which is not normal, but we have had dialogues both on the military side and on the diplomatic side in October and November. And the idea is that we engage so that we can have some sort of resolution,” Ministry of External Affairs (MEA) Official Spokesperson Randhir Jaiswal said during the weekly media briefing on Thursday. (ANI)

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  • Quality Concerns Dog Chinese Arms Exports

    Quality Concerns Dog Chinese Arms Exports

    Despite its subscription to international treaties, China remains wary of disclosing the full extent of its arms sales and evidence suggests that Chinese equipment, including relatively modern products, often fails to meet the quality and reliability standards of Western equivalents….reports Asian Lite News

    China is among the world’s top arms traders, with many sales achieved thanks to affordable products, Beijing’s political heft and favourable contractual terms. However, it is a case of buyer beware, because clients often end up with equipment that is defective or not well supported by their Chinese manufacturers.

    According to the latest data from the Stockholm International Peace Research Institute (SIPRI), eight Chinese companies – including AVIC, Norinco, China South Industry Group Corporation, China Aerospace Science and Industry Corporation (CASIC), China Aerospace Science and Technology Corporation (CASC) and China Electronics Technology Group Corporation (CETC) – were among the world’s top hundred arms producers in 2022. Their combined revenue amounted to USD108 billion, a 2.7 per cent increase compared to the preceding year.

    Notably, however, there was a 23 per cent decrease in the value of Chinese arms sales in the 2018-22 period compared to the preceding 2013-17 timeframe. Of course, it is impossible to point to the quality of Chinese equipment as the catalyst for this, but it should certainly be something that potential buyers keep in mind.

    Nonetheless, both anecdotal and qualitative evidence suggests that purchasing from China comes with attendant risks. One prominent example is Jordan’s procurement of six CH-4B armed drones in 2016. Incredibly, after operating them for less than three years, Jordan promptly put its aircraft up for sale.

    Chinese drones appear to have relatively high crash rates too. For instance, eight of 20 Iraqi CH-4Bs crashed within the first few years of operation, while the rest were grounded due to a lack of spare parts. In similar fashion, Algeria lost three CH-4Bs within a period of just months. Interestingly, other users of Chinese drones – such as Morocco, Nigeria and Turkmenistan – have moved on to Turkish-built aircraft instead.

    The late Richard Bitzinger, in a report published by the S. Rajaratnam School of International Studies in Singapore late last year, posed the question: “What is the secret to success as an arms exporter? Repeat business. Countries buy arms from certain suppliers for specific reasons: performance, reliability, cost, alliance politics and so on. An important sign of success as an arms producer is building up a large and reliable overseas customer base – countries that return, year upon year, to buy additional weapons.”

    Bitzinger continued: “Here is where China has always suffered as an arms exporter. True, it consistently accounts for around 5 per cent of the global arms transfer business …As it stands, China remains pretty much a niche player in the global arms market. It sells most of its weapons to a very small number of countries.” Indeed, in the past 20 years, more than 60 per cent of all Chinese arms sales went to just three nations: Bangladesh, Myanmar and Pakistan.

    It is also noticeable that some countries who once bought significant quantities from China have ceased doing so. Examples include Algeria, Egypt, Iran, Sri Lanka and Turkey. “This begs the question,” Bitzinger mused, “if Chinese weapons systems are really that good, then why is their appeal so limited? Why is their traditional customer base still so small? In fact, one might infer from the large number of one-shot sales that most Chinese arms, while certainly better than what they used to be, are still no more than good enough, and that other foreign weapons systems – Western, Russian and Israeli – still outclass Chinese arms in most respects.”

    The catalogue of dissatisfied customers is quite long. It is reported, for instance, that Bangladesh’s two Ming-class submarines acquired second-hand from China are unusable and unserviceable, while the country’s air force returned Chinese-built Y-12 and MA60 transport aircraft. Bangladesh also reported issues with K-8W trainer jets firing Chinese ammunition.

    Likewise, Indonesia bought C-705 anti-ship missiles from China, but they persistently fail to hit targets in exercises. Another example is Nigeria’s procurement of F-7 fighters in 2009. Several were lost in crashes, while seven remaining airframes were returned to China for deeper maintenance in around 2020.

    Myanmar procured 16 JF-17 fighters in 2016, but the junta has complained about structural and engine problems, as well as poor accuracy from their radar. In November 2022, media reported that Myanmar had grounded its JF-17 fleet, with its eleven delivered aircraft declared “unfit for operations”. Some customers are forced to turn to third countries to get the necessary support for their unreliable Chinese-made equipment, and thus Myanmar turned to Pakistani technicians to help rectify its JF-17 fleet.

    It is not just aircraft that are problematic either. The Pakistan Navy procured four F-22P frigates, but Islamabad was soon reporting poor performance, degraded engines and other technical issues. The ships’ FM90N surface-to-air missile (SAM) system also proved ineffectual, and their IR17 infrared seekers had to be discarded because they could not lock onto targets. With Beijing uninterested in rectifying the frigates, Pakistan eventually turned to Turkey to upgrade them.

    Furthermore, Chinese equipment is typically incompatible with Western systems, and this leads to further tribulations. For example, when the Royal Thai Navy received a Type 071E amphibious assault vessel from China last year, it was delivered without weapons, sensors or combat management system. Instead, Thailand will go to the lengthy and expensive task of inviting Western companies to retrofit the missing equipment. Similarly, Thailand turned to companies like Saab to retrofit radars and combat management systems in older Chinese-made frigates.

    The Pentagon, in its 2023 report on the Chinese military, noted, “China is capable of producing ground weapon systems at or near world-class standards; although customers also cite persistent quality deficiencies with some exported equipment, inhibiting the PRC’s ability to expand its export markets.”

    It added: “China is the fifth-largest arms supplier in the world…Many developing countries buy Chinese weapons systems because they are less expensive than other comparable systems. Although some potential customers consider arms made by the PRC to be of lower quality and reliability, many of China’s systems are offered with enticements such as donations and flexible payment options, which make them appealing options for buyers.”

    Bitzinger concurred: “China’s strengths as an arms exporter remains, as it had for decades, at the low end of the business, offering basic equipment at rock-bottom prices with few strings attached. In particular, Beijing tries to dominate those types of armaments that could be considered ‘commodities’ – where cost, as opposed to technology or capability, is often the key determining factor. Examples include small arms, ammunition, artillery rounds and light armoured vehicles. China has also carvedut a particularly lucrative niche for itself in selling armed drones.”

    contracts for new equipment, it can be frustrating for export customers attempting to gain aftermarket support from Chinese companies. There is little incentive for state-owned companies to provide timely support, because deals are done through the government and they do not stand to lose out commercially because of poor customer service. On the other hand, there is no questioning the ability of Chinese defence industry to churn out equipment quickly, or that its equipment is growing in technological sophistication.

    Chinese arms sales are predominantly in developing countries in Africa, the Middle East, Central Asia, Southeast Asia and, to a lesser extent, South America. It also gains sales from countries that do not wish to be reliant on the West. Indeed, Beijing is not particularly discerning as to who it sells to. It is happy to supply dictatorships such as Myanmar, with little regard as to how weapons are used against civilian populations or in nations with poor human rights records. The fact is, few strings are attached, especially if compared to the likes of the USA.

    China is competing against Russia primarily, rather than American and European arms suppliers, and it is likely picking up customers as Russian manufacturers are kept occupied providing weapons and munitions to its own war machine in Ukraine. It will therefore be interesting to examine future data to see if this hypothesis is borne out.

    China does not have treaty allies in the same way that the USA does with the likes of Australia, Japan or South Korea. Regardless, it uses arms sales to strengthen political connections and to whittle away at American influence. It is seeking to strengthen its soft power, and defence sales are one way of doing that, because it ties users to a state of dependency for the lifetime of that equipment.

    The Pentagon pointed out: “China’s arms sales operate primarily through state-run export organisations such as AVIC and Norinco. Arms transfers also are a component of the PRC’s foreign policy, used in conjunction with other types of assistance to complement foreign policy initiatives undertaken as part of China’s Belt and Road Initiative.”

    China transitioned from an administratively based arms export control system to one based in law in the early 2010s. Since then, it worked to reform its export control legislation to form one umbrella national-level legal and policy framework.

    Eventually, the government implemented a new Export Control Law on 1 December 2020. The law supposedly follows three principles: ensuring exports are conducive to the legitimate self-defence capability of a recipient country; ensuring exports do not undermine peace, security and stability of the region concerned and the world as a whole; and non-interference in the internal affairs of the recipient.

    Slightly earlier, on 4 October 2020, China joined the Arms Trade Treaty (ATT), which lists explicit international obligations concerning strategic trade control and which China must implement. At least on paper, China is legally obliged by the ATT not to transfer arms where they might be used to commit serious violations of international human rights, or where they could be diverted to proscribed users.

    China still has a long way to go, though, and the Small Arms Trade Transparency Barometer in 2022 listed China as the eighth-worst arms exporter in terms of transparency. In that same list, Iran and North Korea formed the bottom two. Nor does China provide data to the United Nations Register of Conventional Arms.

    Unfortunately, Chinese weapons are also reaching non-state actors in places like Africa, whether by weak oversight by purchasers or perhaps by direct complicity by Chinese sellers. For instance, Chinese weapons have been found in the hands of non-state actors in Darfur in Sudan, and in the Democratic Republic of Congo.

    An August 2018 report from EXX Africa (now Pangea-Risk Insight) indicated that China was increasing its role in transferring arms to Africa. Purportedly, this was to protect infrastructure investments on the ccontinent, but the report concluded: “Following a new investigation that included collection of intelligence from well-placed security sector sources in the Horn of Africa, we have found evidence that Chinese weapons are making their way from the Chinese PLA support base in commercial port of Djibouti towards African conflict zones that have been placed under an arms embargo.” EXX Africa also reported shipments of heavier equipment such as WS-1 multiple rocket launchers, HJ-8 anti-tank missiles and tank ammunition flowing through Djibouti.

    A report issued by the French Ministry of Defence in 2021, authored by Bernardo Mariani, found likewise: “Chinese arms manufacturers have made inroads on the continent. During the 2016-20 period, China was the second-biggest supplier of arms to sub-Saharan Africa. Weapons and ammunition of Chinese origin are in the hands of a range of actors, including non-state forces, operating in a number of countries. These are in many cases a result of diversion.”

    Despite subscribing to international treaties, China remains paranoid about revealing the true extent of its arms sales. There is also ample evidence that Chinese equipment, even relatively modern products, do not attain to the quality and reliability levels of their Western equivalents.

    Then again, some countries simply prefer to buy cheaper products with the advantage of knowing they will not be asked embarrassing questions by the Chinese authorities. (ANI)

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  • Beijing urges US to stop harassing Chinese students  

    Beijing urges US to stop harassing Chinese students  

    Beijing has repeatedly alleged that Chinese nationals with valid travel documents have been subject to aggressive interrogations and deportations at US airports…reports Asian Lite News

    China’s public security minister urged the US homeland security secretary to stop alleged “harassment” of Chinese students entering the United States in a meeting between the two in Vienna, Beijing’s state media reported Monday.

    In a readout of talks Sunday between Wang Xiaohong and Alejandro Mayorkas, Beijing urged Washington “to stop harassing and checking Chinese students for no apparent reason,” state news agency Xinhua said.

    Beijing has repeatedly alleged that Chinese nationals with valid travel documents have been subject to aggressive interrogations and deportations at US airports, with its embassy in Washington last month urging Chinese travelers to avoid the capital’s Dulles airport.

    In his meeting with Mayorkas, Wang urged the United States to “ensure that Chinese citizens enjoy fair entry treatment and full dignity,” according to Xinhua.

    Wang also pressed Mayorkas to “rectify” the US decision to place China on a list of major countries transiting or producing narcotics.

    US officials have long charged that China is complicit in the trade of fentanyl, which is many times more powerful than heroin and is responsible for more than 70,000 overdose deaths a year in the United States.

    Last month in Beijing, US and Chinese officials agreed to cooperate to curb the production of ingredients to make fentanyl, known as precursor chemicals.

    A US readout of Sunday’s talks said Wang and Mayorkas had held “candid and constructive discussion on the steps needed to combat the spread of precursor chemicals.”

    “The two sides also made commitments with respect to continued law enforcement cooperation, technical bilateral exchanges between scientists and other experts, scheduling of precursor chemicals, and furthering multilateral cooperation,” it said.

    Washington and Beijing also discussed expanding cooperation “in the fight to protect children from online child sexual exploitation and abuse,” the readout added.

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  • Labour Unrest Soars Amid China’s Slowdown

    Labour Unrest Soars Amid China’s Slowdown

    Labour protests more than tripled in the fourth quarter of 2023 compared to the same period in 2022….reports Asian Lite News

    Labour protests in China have increased rapidly since August of last year, according to rights groups, especially in the lead-up to the Lunar New Year, which began late last week, a media report said.

    Labour protests more than tripled in the fourth quarter of 2023 compared to the same period in 2022, according to data collected by New York-based international rights group Freedom House’s China Dissent Monitor, which tracks protests in China, VOA reported.

    Analysts say this unrest is linked to poor working conditions and China’s ongoing economic difficulties, the report said.

    The China Dissent Monitor recorded 777 labour protests in China between September and December 2023, compared to 245 in the same period of 2022.

    Independent data from the Hong Kong-based China Labour Bulletin, which promotes Chinese workers’ rights, recorded an additional 183 protests between January 1 and February 3, 2024, including 40 in Guangdong province alone, VOA reported.

    Kevin Slaten, who leads the China Dissent Monitor, said worker protests are often linked to wage disputes and occupational safety.

    Li Qiang, Founder and Executive Director of New York-based China Labour Watch, which advocates for the Chinese labour movement, said that in addition to China’s economic slowdown, an “implosion” in the real-estate sector and reduced manufacturing was also a factor, VOA reported.

    “China’s high-level economic problems ultimately set the foundation of the increase in labour protests this year,” Li said, adding, “Due to the decrease of manufacturing orders, among other things, a lot of companies face financial challenges that trickle down to workers,” VOA reported.

    Markets equities: China worst performer

    All the emerging markets indices saw negative performance in January with China being the worst performer at 10.6 per cent. As far as developed markets are concerned, Japan emerged as the best performer at 4.6 per cent, as per a report by Motilal Oswal Asset Management Company.

    Nifty 50 declined by -0.03 per cent in January 2024. However, the index has shown positive growth since the past year, the report said.

    This year’s turmoil in China has sparked a stock meltdown, blown up structured financial products, led to public disgruntlement, and now Chinese President Xi Jinping has put a new market regulator in control, Bloomberg reported.

    Yet powered by the US tech euphoria, global equities are approaching records, haven assets are out of favor and even neighboring Asian markets are relatively unscathed. Chinese assets are out of sync with the rest of the world, with a measure of global financial market volatility trending lower this year, Bloomberg reported.

    It’s a stark contrast to what happened when China’s bubble burst in 2015 and the world’s two largest economies engaged in a trade war in 2018, which led to a synchronised drop in global shares. This time around Beijing’s woes remain an isolated affair after an exodus of international capital, Bloomberg reported.

    With the selloff extending after three straight years of declines, even once-staunch China bulls including Goldman Sachs Group Inc. have been forced to rethink their views. If foreigners are not coming back, it will make Xi’s mission to engineer a market recovery more difficult to achieve. It’s also more fodder for investors looking to funnel capital to the pre-eminent US market and elsewhere in Asia instead, Bloomberg reported.

    Over the past three years, about $6 trillion — equivalent to roughly twice Britain’s annual economic output — has been wiped off the value of Chinese and Hong Kong stocks, CNN reported earlier.

    The astonishing losses, reminiscent of the last Chinese stock market crash of 2015-2016, highlight a crisis of confidence among investors concerned about the country’s future, CNN reported.

    Foreign brokerage, Morgan Stanley said in an earlier report in January that it continues to prefer Japan and India versus overall EM and China this year.

    Japan remains a key OW market at the global equity level with a TOPIX base-case target price of 2600 (+4 per cent upside) and a rising likelihood of our bull case of 2800 (+12 per cent upside) coming into play as fund re-allocations to Japan have been high year to date driving multiple expansion.

    India looks solid on most parameters – strong flows, earnings growth and macro-outlook, BNP Paribas said in India Strategy Report 2024. Strong domestic and FPI flows into Indian equities boosted domestic stocks in 2023. We see no reason for this to change. The macro environment seems favourable with inflation easing. For the US, Also, in terms of underlying fundamentals, India has seen double-digit earnings growth with minimal consensus downgrades in recent quarters.

    India continued its stellar performance in CY23 as it emerged as one of the best performing markets, trailing only the US and Taiwan, led by factors such as: 1) solid domestic macro environment; 2) strong domestic flows; 3) resurgence of FII inflows post March 2023; 4) resilience in corporate earnings; and 5) easing inflation fears and expectations of global interest-rate cuts, the report said.

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  • China’s Chang’e-6 lunar sample-return mission to lift off in May

    China’s Chang’e-6 lunar sample-return mission to lift off in May

    Besides China, no other country has so far landed on the far side of the Moon….reports Asian Lite News

    China is expected to launch its next lunar sample-return mission, Chang’e-6, planned to the far side of the Moon, in May, according to a media report.

    The China Central Television (CCTV) reported that to make the spacecraft ready for launch, engineers working on China’s Chang’e-6 mission have foregone family reunions over the Lunar New Year or Spring Festival.

    “We must ensure that the probe is in good condition, and each step we take is quality guaranteed,” Zhang Yang, managing engineer of Chang’e-6, was quoted as saying.

    “This is the first time that I am not celebrating the Spring Festival with my family, and I wish all my family members good health in the Year of the Dragon,” Zhu Rongkuan, a young engineer on the team, was quoted as saying.

    During the 53-day-long mission, the lander will seek to touch down in the Apollo basin on the far side of the moon and collect up to 2 kg of lunar materials using a scoop and a drill.

    Besides China, no other country has so far landed on the far side of the Moon.

    The far side of the Moon, which cannot be seen from Earth, is covered in craters, but unlike the near side is not dominated by large lunar mare, or darker imprints of ancient lava flows.

    The country’s Chang’e-5 lunar probe went on to become the first to land on the “far” side of the Moon in 2019.

    In December 2020, Chang’e-5 lunar probe brought back 1,731 grams of samples from the Moon, marking China’s first successful extraterrestrial sampling and return, and the completion of its three-step lunar exploration programme.

    China is also planning the Chang’e-7 probe around 2026 to implement resource exploration of the lunar south pole, and to construct a permanent lunar base in the 2030s.

    For this, it has roped in nations like Russia, Belarus, Pakistan, Azerbaijan, Venezuela and South Africa.

    It is in direct competition with the NASA-led Artemis Programme, which aims to place astronauts on the lunar surface by 2030, and has the support of 29 nations to date, including India, Australia, Brazil, Canada, France, Germany, Japan, South Korea and the UK.

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  • Jaishankar, Wang’s Munich Meet Sparks Diplomatic Dialogue

    Jaishankar, Wang’s Munich Meet Sparks Diplomatic Dialogue

    External Affairs Minister Dr S. Jaishankar and his Chinese counterpart Wang Yi had a brief conversation on the sidelines of the Munich Security Conference.

    The interaction took place on Saturday when Jaishankar was going to the stage for a panel discussion and Wang was walking down the podium

    The impromptu interaction comes after months of no communication between the two countries.

    Last time the two leaders met in Indonesia on the sidelines of ASEAN meet in July 2023.

    The Security Conference, an annual conference on global security issues, began in Munich on Friday.

    Jaishankar has already met UK Foreign Secretary David Cameron and Peru Foreign Minister Javier Gonzalez-Olaechea on the sidelines of the conference.

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