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China Sanctions Paraguayan and Belizean Ministers Over Diplomatic Ties with Taiwan

Newswire / /

China has imposed sanctions on Paraguay’s Minister of Communications, Gustavo Villate, and Belize’s Minister of Foreign Affairs, Francis Fonseca, over their countries’ diplomatic relations with Taiwan. The Chinese Foreign Ministry justified the decision as a measure to protect national sovereignty and security. The move once again underscores the importance of the Taiwan issue in China’s foreign policy.

Paraguay and Belize are among the 12 countries that continue to maintain formal diplomatic relations with Taiwan. The sanctions package includes freezing the ministers’ assets and property in China, banning them from obtaining visas and entering the country, and prohibiting Chinese organizations and individuals from engaging in business relations or cooperation with them. However, the sanctions are largely symbolic, as ministers from countries that maintain diplomatic relations with Taiwan generally do not travel to China.

According to Reuters, Chinese authorities described the sanctioned officials as “pawns” and accused them of insulting Beijing. Chinese Foreign Ministry spokesperson Mao Ning stated: “They have seriously interfered in China’s internal affairs, spread false information about Chinese cyberattacks, and attacked and smeared China, causing a bad international impact“

The sanctions were announced two days after Taiwan celebrated its National Day. Paraguay’s Minister of Communications, Gustavo Villate, responded to the occasion in a statement posted on social media, reaffirming his country’s friendly and cooperative relations with Taiwan. He said these ties were based on shared values and principles, including self-determination, human rights, and democracy.

Paraguayan President Santiago Pena has described Taiwan as a “fundamental partner” for the South American country. Earlier this year, he visited Taipei, where the two sides signed several agreements. These covered cooperation in mutual legal assistance in criminal matters, cybersecurity, artificial intelligence, and computing technologies.

Last month, Taiwan’s Foreign Minister, Lin Chia-lung, also visited Belize. According to Taiwan’s Ministry of Foreign Affairs, the two sides agreed to deepen their bilateral relations.

China considers Taiwan part of its territory and does not recognize it as an independent state. Beijing has stated that it does not rule out the use of force to bring Taiwan under its control if necessary. Taiwan’s authorities, in turn, reject Beijing’s claims and maintain the island’s self-governance.

The sanctions provide another example of how China uses diplomatic and economic restrictions in response to issues related to Taiwan. Against this backdrop, Paraguay’s and Belize’s continued relations with Taiwan remain a source of diplomatic tension between Beijing and the two countries.

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Putin’s Aide Visits China: Prospects for a Trilateral Meeting of the U.S., Russian, and Chinese Leaders

Newswire / /

On October 8, Nikolai Patrushev, an aide to Russian President Vladimir Putin, visited China. The Russian delegation included representatives of government agencies, logistics companies, shipbuilding enterprises, and scientific and educational institutions. According to a Russian news agency, the purpose of the visit is to hold negotiations on cooperation in the maritime sector.

Patrushev is the chairman of Russia’s Maritime Board. He has also served as an aide to Putin since 2024. From 2008 to 2024, Patrushev served as secretary of Russia’s Security Council.

Following the meeting between U.S. President Donald Trump and Chinese President Xi Jinping, Patrushev is the first high-ranking official from Moscow to visit Beijing. Experts therefore identify the possibility of arranging a trilateral meeting between Trump, Putin, and Xi Jinping as one potential topic of the talks with Patrushev.

A number of circumstances suggest that a trilateral meeting between Trump, Xi Jinping, and Putin could take place in November on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the Chinese city of Shenzhen. On October 1, Putin responded favorably to a question about the meeting, stating that it was “certainly possible.”

China’s ambassador to Russia, Zhang Hanhui, also commented on the possibility of a trilateral meeting. According to him, such a meeting would be “very beneficial” for “the development and formation of a multipolar world.”

Patrushev’s visit to China demonstrates that relations between Moscow and Beijing continue to develop despite the ongoing war in Ukraine and criticism from the West. Meanwhile, against the backdrop of the “constructive” dialogue between Donald Trump and Xi Jinping, Beijing could play the role of mediator between Washington and the Kremlin.

Source: Kremlin aide visits China amid speculation about potential Xi-Putin-Trump meeting 

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The European Parliament toughens its stance on China

Newswire / /

On 7 October, the European Parliament held a vote on a report on China. The document was supported by 456 Members of the European Parliament, while 86 voted against it and 110 abstained. The report signals a shift in the current dynamics of EU–China relations, as it sets out tougher measures against China.

Although the report does not directly affect the EU’s policy towards China, its tone indicates a trend towards a tougher European policy on Beijing. Unlike previous reports, the document adopted by the European Parliament presents China as the EU’s “systemic rival.” In addition, the report characterises Beijing as a supporter of Russia’s actions in the war in Ukraine. In this regard, it highlights China’s practice of supplying Russia with dual-use goods and facilitating sanctions evasion.

Regarding Taiwan, the report calls on the EU to strengthen security coordination with member states and other democratic partners, including the deployment of naval forces and the conduct of joint exercises, to enhance stability in the Asia-Pacific region.

Against the backdrop of ongoing trade negotiations between Beijing and Brussels, the report states that China’s industrial overcapacity threatens the EU’s industrial sector, while the People’s Republic’s electric vehicle sector poses a “big threat” to European security and the economy.

Despite the support of a majority of MEPs for the report, positions on China differ within Parliament. Centrist and right-wing groups favour pursuing a tougher policy towards Beijing. In their view, China is a systemic rival that understands the language of strength rather than diplomacy.

On the other hand, members of socialist and left-wing groups support dialogue with China. In their view, EU–China relations should not be based on the idea of a bipolar world divided into two blocs, which is “dangerous” and “unproductive.”

Source: “No more dumping, no more spying”: European Parliament hardens line on China

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A New Step in EU-China Trade Negotiations: Meeting in Beijing

Newswire / /

Today, October 7, EU officials responsible for trade issues will travel to Beijing for two days of intensive negotiations with China. The EU delegation will be led by Maros Sefcovic, European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency.

On October 8–9, within the framework of the so-called China-EU “Trade and Investment Consultations,” Sefcovic will meet his Chinese counterpart, Wang Wentao. The negotiations aim to address the existing imbalance in China-EU trade relations. In recent months, China’s trade surplus with EU member states has increased significantly.

China-EU relations are facing criticism from several member states. In particular, amid the growth of cheap imports from China, the competitiveness of manufacturing companies in Europe’s industrial centres, including Germany, is declining. As a result, European companies are unable to compete effectively with Chinese corporations, forcing them either to close or scale down their operations. Therefore, the growth of imports from China is potentially associated with the problem of unemployment.

Critics believe that China’s model of state capitalism and its practice of providing state subsidies are harming the EU’s manufacturing sector.

France and Germany are distinguished by their particularly hawkish stance on trade issues with China. On October 5, German Chancellor Friedrich Merz and French President Emmanuel Macron signed a paper providing for the introduction of a new mechanism for regulating foreign trade. The initiative envisages the use of an emergency instrument against countries or companies that engage in unfair trade practices in the European market. According to experts’ assessments, the instrument would enable the EU, if necessary, to exclude China from the European market.

On October 7, China’s Ministry of Commerce expressed hope that France and Germany would refrain from encouraging the EU to resort to protectionist instruments. The ministry called on the parties not to politicize economic and trade issues.

Next week, the leaders of EU member states will meet in Brussels. The results of the negotiations with Beijing will also be discussed at this meeting.

Source: South China Morning Post – ‘Last chance saloon: EU presses China for a sign to prove trade talks can work’

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CRRC carriages in the Tbilisi metro: possible risks and challenges

Energy & Infrastructure (Roads, Ports, Nuclear), Research / /

This research examines how the company “G-T Group” won the tender for the procurement of Tbilisi Metro train cars and will supply the Tbilisi City Hall with products manufactured by the Chinese state-owned company CRRC.

The research found that:

🔴  The shareholders and employees of “G-T Group” have donated substantial amounts of money to the ruling Georgian Dream party over the years.

🔴  The tender requirements appear to have been tailored to a specific company — the Czech side challenged the tender on precisely these grounds.

🔴  CRRC has been internationally associated with corruption scandals, forced labor involving Uyghurs, and sanctions imposed by the European Union and the United States.

🔴  The company is directly subordinate to the Chinese Communist Party, creating additional security concerns when it comes to critical infrastructure.

Read the full Research

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Chinese-Owned Georgian Bank Became Direct Participant of CIPS

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On September 8, Georgia’s third-largest financial group, Basisbank, signed an agreement and gained direct participant status in CIPS (Cross-Border Interbank Payment System).

The bank described the agreement as a strategic step toward expanding international transactions and developing its RMB business operations. According to Basisbank, CIPS membership will strengthen its integration into Chinese and global financial markets.

“[Direct CIPS Participation] enhances the efficiency of RMB-denominated cross-border transactions and creates new opportunities to support growing trade and investment relations between Georgia and China.”

Additionally, the bank signed a Memorandum of Cooperation with the Agricultural Bank of China, which will act as the clearing bank supporting Basisbank’s transactions through CIPS.

The Agricultural Bank of China (ABC) is a state-controlled commercial bank that, according to its official website, is one of the major integrated financial service providers in China. Notably, Basisbank’s RMB transactions will be supported by this state-controlled bank.

 

What is CIPS?

According to its official website, CIPS Co., Ltd. is subject to the supervision, administration, and guidance of the People’s Bank of China. Since 2015, CIPS has provided clearing and settlement services to banks for RMB-denominated cross-border and offshore transactions. As of June 2026, CIPS serves 210 direct participants and 1,619 indirect participants.

Experts’ assessments have identified several strategic benefits that CIPS could provide to Beijing:

First, CIPS can support the internationalisation of the RMB and reduce reliance on the US dollar in cross-border transactions, contributing to China’s broader efforts to promote greater use of its currency in international trade and finance.

Second, as China’s role in global trade expands, greater use of RMB-based payment infrastructure can facilitate transactions with Chinese counterparties and potentially reduce transaction costs and exposure to certain currency and payment-related risks.

Third, CIPS provides an additional channel for cross-border RMB payments outside the traditional financial infrastructure centred on Western institutions. It is sometimes described as an alternative to SWIFT.

 

A Chinese-Owned Bank and CIPS Membership – Expansion of the Chinese Financial System in Georgia?

Basisbank is one of Georgia’s largest commercial banks, serving approximately two million customers. The bank’s majority shareholder is Xinjiang Hualing Industry & Trade (Group) Co., Ltd. (“Hualing Group”), which has been its controlling shareholder since 2012. As of December 2025, Hualing Group held a 91.69% stake in Basisbank.

In April 2026, Basisbank acquired a controlling stake in Liberty Bank, further expanding its position in Georgia’s banking sector. Following the acquisition, the combined group has an estimated market share of more than 11%.

The acquisition also increased the strategic significance of the group’s financial infrastructure. Liberty Bank has for decades provided state pension and social benefit distribution services in Georgia, having repeatedly won relevant public tenders. Through its ownership of Liberty Bank, Basisbank therefore operates within a financial group that provides services to a substantial segment of Georgia’s population.

Against this backdrop, Basisbank’s CIPS membership represents another step toward the growing integration of the country’s financial and economic infrastructure with China. China has become an increasingly important trading partner for Georgia, while Chinese-produced goods have gained a significant presence in the Georgian market. Chinese companies have also become major participants in Georgia’s infrastructure sector, including through large-scale public procurement and infrastructure projects.

Direct participation in CIPS can facilitate this growing economic relationship by allowing Basisbank to process RMB-denominated cross-border transactions more directly and efficiently. In practical terms, the arrangement provides an additional channel through which Georgian businesses and their Chinese counterparts can conduct international payments and settle trade and investment transactions in RMB.

At the same time, the development warrants attention from a financial-security and sanctions-compliance perspective.

Georgian banks’ access to Chinese payment and settlement infrastructure could create additional channels for transactions involving jurisdictions subject to Western sanctions. This is particularly relevant given Georgia’s growing economic engagement with China alongside the government’s increasingly permissive approach toward economic relations with Russia and Iran.

The key concern, therefore, is how this infrastructure may be used. Increased RMB-denominated transactions involving Chinese, Georgian, Russian, Iranian, or other counterparties could facilitate third countries’ illegal activities and sanctions-evasion schemes.

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Chinese Company Wins Major ADB-Financed Infrastructure Contract in Georgia

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Chinese companies continue to dominate major infrastructure projects in Georgia. Most recently, China Railway Tunnel Group Co., Ltd. (CRTG) was awarded a major state procurement contract by the Roads Department of Georgia under the Ministry of Infrastructure.

On September 1, the Roads Department signed a contract with CRTG for the construction of the Tbilisi Bypass Lot 2 – Tsitsamuri-Avchala Road Section. The accepted contract value is approximately GEL 499.1 million. The project is financed by the Asian Development Bank (ADB).

The tender attracted significant participation from Chinese companies. Of the 10 bidders, six were Chinese, three were Turkish, and one was a Georgian company, meaning that Chinese companies accounted for 60% of all bidders. Chinese companies also submitted the lowest bids, with CRTG ultimately offering the lowest bid and securing the contract.

CRTG is ultimately owned by the Chinese government and operates under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). Its parent company, China Railway Construction Corporation (CRCC), was added to the U.S. Department of Defense’s list of companies with ties to the Chinese military in 2020. CRTG and its parent company have also faced controversies related to corruption, labor rights, and project management in countries including Singapore, Zambia, and Kenya.

This is not CRTG’s first involvement in Georgia’s infrastructure sector. The company has participated in Georgian state procurements since 2018. In 2022, CRTG was awarded a contract to construct a 9-kilometer tunnel on the Kvesheti-Kobi road section. In 2024, the company won another state contract worth GEL 224 million for the construction of the Stepantsminda-Gveleti road section of the Stepantsminda-Larsi International Road.

Civic IDEA has closely monitored CRTG’s activities in Georgia. In its 2024 report, “Chinese Company CRTG: Security Risks and Infrastructure Failures,” Civic IDEA highlighted the controversies surrounding the company and raised concerns about entrusting critical infrastructure projects to a company with a record of serious international violations. Despite these concerns, relevant Georgian state agencies have continued to award major infrastructure contracts to CRTG, raising questions about the application of adequate due diligence in the selection of companies for strategically important projects.

Meanwhile, CRTG is also participating in another ADB-financed infrastructure project announced by the Roads Department in February 2026. With an estimated value of approximately GEL 932 million, the project envisages the construction of two road sections: Avchala-Gldani Interchange and Gldani Interchange-Tbilisi Airport.

The bidding process was completed on June 1, and the tender remains under evaluation. Of the eight bidders, six are Chinese companies and two are Georgian companies. The lowest bids were submitted by Xinjiang Beixin Road & Bridge Group Co., Ltd. and Longjian Road and Bridge Co., Ltd.

Civic IDEA will continue monitoring the procurement process and provide further updates on the outcome of the tender.

Chinese Company Wins Major ADB-Financed Infrastructure Contract in Georgia Read More »

Tinatin Khidasheli to Speak at Hitotsubashi University Workshop on Anti-Espionage Legislation

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—

📅 September 10, 2026
🕒 15:00–16:30 (JST)
📍 Hitotsubashi University, Kunitachi Campus
🗣️ Language: Japanese

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Civic IDEA Chairperson and former Georgian Minister of Defense Tinatin Khidasheli will participate as a speaker in the upcoming workshop “Thinking about the Desirable Form of the Spy Prevention Act,” organized by the Institute for Global Governance Research (GGR) at Hitotsubashi University in Japan.

The workshop will take place on September 10, 2026, and will examine the growing debate in Japan over the introduction of anti-espionage legislation. The discussion will focus on how such laws can be designed to address legitimate national security concerns while safeguarding fundamental rights and freedoms.

The workshop will also draw comparative lessons from countries where legislation related to espionage, national security, and foreign influence has raised serious concerns regarding the protection of citizens’ rights, including China and Georgia.

Tinatin Khidasheli will join Taro Tanaka, Global Legal Officer at LEDGE and Partner at Miura & Partners, and Jin Li, doctoral researcher at Hitotsubashi University’s Graduate School of Law. The discussion will be moderated by Maiko Ichihara, Professor at Hitotsubashi University.

As Chairperson of Civic IDEA and a former Minister of Defense of Georgia, Khidasheli brings extensive experience in defense and security policy, democratic governance, human rights, and countering foreign influence and hybrid threats.

Registration link

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Beijing Lodges Formal Protest over Japan’s New Defence White Paper

Newswire / /

On August 5, China’s Foreign Ministry said it had lodged a formal protest with Japan over its newly released defence white paper. Beijing accused Tokyo of deliberately amplifying the so-called China threat, making unfounded claims about Taiwan and using them to justify the expansion of its military capabilities.

Japan published its annual defence report on August 4. The document states that China has intensified military activity around Taiwan and that the overall balance of forces across the Taiwan Strait is shifting rapidly in Beijing’s favour. Tokyo describes China’s military activities as a serious threat to Japan and the international community, as well as the country’s greatest strategic challenge.

China’s Foreign Ministry rejected the assessment, insisting that Taiwan is an internal Chinese matter in which Japan has no right to interfere. The ministry described Beijing’s military activities around Taiwan as “legitimate and reasonable“.

Beijing also accused Tokyo of seeking a pretext for its military build-up and gradually weakening Japan’s post-war defence restrictions. Chinese authorities urged Japan to stop using China to justify military expansion and to refrain from interfering in the Taiwan issue.

 

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China Draws Economic “Red Lines” Ahead of Trade Talks with the West

Newswire / /

Ahead of expected trade negotiations with the United States and the European Union, China is signaling that it does not intend to fundamentally alter its economic course, which is centered on manufacturing and high-tech industries. Beijing rejects Western accusations that state subsidies and excess production capacity distort global competition.

At the end of July, the Politburo of the Chinese Communist Party endorsed the continuation of the current economic policy. The leadership emphasized the need for targeted support and stronger domestic demand but did not unveil a new package of large-scale stimulus measures or structural reforms.

According to China’s Ministry of Commerce, allegations of overcapacity are being used to justify discriminatory trade measures against Chinese companies. Beijing argues that industrial and technological development is essential for narrowing the economic gap with advanced economies.

The United States and the European Union, however, maintain that state support, weak domestic demand and the rapid expansion of production capacity give Chinese companies a price advantage in foreign markets. Brussels and Washington identify subsidies, market-access barriers and unequal competitive conditions as key concerns.

Despite its firm rhetoric, Beijing is seeking to address certain domestic imbalances, though it is not considering major concessions. According to Reuters, China is drawing “red lines” ahead of negotiations with the West, signaling which aspects of its economic policy it is unwilling to change.

China Draws Economic “Red Lines” Ahead of Trade Talks with the West Read More »

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