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Chinese and Russian military air patrol in the airspace of the Sea of Japan

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The Chinese and Russian military have carried out their ninth joint air patrol, which, in this case, took place in the airspace of the Sea of Japan. The project is part of a cooperation agreement between the two countries since 2019.

According to the Chinese media platform CCTV, the patrol aims to test and improve joint training and enhance the two air force operational capabilities.

Some of the aircraft involved in the training appeared in the Air Defense Identification Zone (ADIZ) of South Korea, after which the country launched its fighter jets. However, Chinese and Russian aircraft left the zone after 4 hours without incident. South Korea underlined that air patrol was organized without alerting the country beforehand.

Despite the fact that, in general, countries demand the identification of the aircraft that enter their ADIZs, these zones are not a part of any sovereign state and some of the ADIZs even overlap.

Chinese National Defense Ministry spokesperson commented on said training and stated that it „does not target any third party and has nothing to do with the current international and regional situations“.

Chinese state-backed media Global Times writes according to a Chinese military expert and underlines the strategic importance of used territories in the program. It states that it is normal when two countries organize patrol on their „doorstep“.

 

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Trump’s Trade War Architect, Jamieson Greer, Set to Lead U.S. Trade Strategy in Second Term

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US President-elect Donald Trump announced that he has chosen trade lawyer Jamieson Greer to be the next U.S. Trade Representative (USTR), a critical position that will shape the administration’s economic and trade strategies in his second term. Greer, a seasoned expert in trade law, is being tapped to lead the charge on the administration’s aggressive trade policies, particularly toward China and North America.

Trump highlighted Greer’s pivotal role in his first term’s major trade actions, including the high-stakes trade war with China and the renegotiation of the North American Free Trade Agreement (NAFTA), which became the U.S.-Mexico-Canada Agreement (USMCA). “Jamieson played a key role in the success of my first term trade policies, including standing firm in the trade war with China and making USMCA a much better deal for American workers,” Trump said in a statement.

Greer, who previously served as Chief of Staff to Robert Lighthizer, Trump’s former U.S. Trade Representative, was deeply involved in the negotiations that led to the “Phase 1” trade deal with China in 2020. Under that deal, China committed to purchasing $200 billion in U.S. goods over two years—though this target was never fully met, partly due to the disruptions caused by the COVID-19 pandemic.

Greer’s selection signals that Trump’s second-term trade policies will double down on confronting China, whose state-driven trade practices have long been a focus of the administration. Greer has been vocal about the need for a tougher approach to China, especially in areas like technology and manufacturing. He recently testified before the U.S.-China Economic and Security Review Commission, advocating for more robust tariffs and export controls to protect U.S. industries. “The Chinese government’s use of trade to support its military and state-owned enterprises is a critical threat,” Greer told lawmakers, underscoring the national security risks posed by China’s growing influence in global markets. 

Greer’s selection as USTR is just one part of Trump’s broader strategy to overhaul U.S. economic policy and trade relations. As the administration begins to set its course for the next four years, Greer’s role will be pivotal in shaping the future of U.S. trade policy and in ensuring that Trump’s economic vision remains a central focus of his presidency.

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No Deal About EU Tariffs on Chinese Electric Vehicles; EU Proposes New Sanctions Against Chinese Companies 

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EU and Chinese officials are discussing alternatives to EU tariffs on Chinese electric cars this week.  EU officials said on Monday that there was no prospect of an immediate resolution to the issue.

Bernd Lange, chairman of the European Parliament’s trade committee, hinted to a German broadcaster on Friday that a deal between the 27 countries to replace tariffs between the EU and China with another measure is nearing completion.

However,  Reuters reports that EU officials, speaking on condition of anonymity due to the sensitive nature of the negotiations with Beijing, refuted this claim. They clarified that while discussions are ongoing, significant obstacles remain, preventing a deal from being finalized.

Negotiations were preceded by Xi Jinping’s conversation with German Chancellor Olaf Scholz. During the G20 meeting in Rio de Janeiro, President Xi Jinping urged Scholz to facilitate the resolution of the EU’s tariffs on Chinese electric vehicles, as reported by state television CCTV.

In early October, The EU green-lit significant tariffs on imports of Chinese electric vehicles after receiving broad support from member states. These tariffs are expected to increase from the current 10% to as much as 45% over the next five years. The European Commission, which conducted the vote, emphasized that the EU and China would “work hard to explore an alternative solution” to the tariffs. In response, China’s Commerce Ministry denounced the decision as “unfair” and “unreasonable,” but acknowledged the possibility of resolving the issue through negotiations.

EU member states were divided on imposing tariffs on Chinese electric vehicles. Germany, whose automotive industry relies heavily on exports to China, opposed the tariffs. Many EU members abstained from the vote. However, France, Italy, the Netherlands, and Poland supported the import taxes. The proposal for tariffs could only have been blocked if a qualified majority of 15 member states had voted against it.

Amidst the escalating trade tension between the two blocs, there are calls for cooperation on the Chinese side.  Chinese Foreign Minister Wang Yi highlighted on Monday that China and the European Union should see each other as partners rather than adversaries. He encouraged both sides to think from each other’s perspective and seek partnership. 

Despite efforts on both sides, it is clear that EU measures against China will not be limited to import tax increases in certain sectors. As of Monday, it became known that the EU is set to sanction several Chinese firms alleged to have assisted Russian companies in developing attack drones used in Ukraine. 

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“Examining the Environmental and Social Impact of the Belt and Road Initiative: Civic IDEA Leads Panel at CITW 2024 Summit”

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On November 24, Ani Kintsurashvili, Senior Researcher at Civic IDEA, alongside Tinatin Khidasheli, Chairwoman of Civic IDEA, led a panel discussion titled “Lessons Learned from the BRI: Examining Environmental Hazards and Regulatory Shortcomings” at the CITW 2024 summit in Johannesburg, South Africa. 

The panel examined environmental and social challenges from Chinese BRI projects in Africa and the South Caucasus. The speakers highlighted that since the launch of the BRI, Chinese investments have attracted significant global attention, increasingly burdening many developing states worldwide and sparking controversies related to environmental concerns, and debt sustainability. 

The session also emphasized the risks to communities, ecosystems and biodiversity and emphasize the need for stronger monitoring, regulatory frameworks, due diligence, and improved information sharing to mitigate spillover effects.

Tap to see the presentation:

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Trump’s Tariff Gambit: Steep Taxes on China, Mexico, and Canada to Combat Immigration and Drug Crisis

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Donald Trump has announced that he will impose steep tariffs on China, Mexico, and Canada on his first day back in the White House. He said these steps are necessary to get these countries to take more serious measures against illegal immigration and drug trafficking into the United States. 

In a post on his Truth Social platform, Trump detailed his plans, stating that he would sign an executive order on January 20 imposing a 25% tariff on all imports from Mexico and Canada. Following one more post, Donald Trump attacked China for failing to act on promises to impose the death penalty on those trafficking fentanyl, a drug he claims is entering the U.S. in unprecedented amounts, mostly via Mexico. To take care of this problem, he announced plans to put an additional 10% tariff on all Chinese imports until the flow of drugs into the U.S. is stopped. Trump framed this as a necessary measure to combat the crisis and urged attention to the matter.

In response to Trump’s announcement of additional tariffs on Chinese goods, a spokesperson for the Chinese Embassy in Washington, Liu Pengyu, stated that economic cooperation between China and the U.S. is mutually beneficial, warning that “no one will win a trade war or a tariff war.” The Chinese spokesperson pointed to ongoing cooperation between the two nations’ counternarcotics authorities, citing resumed communication since the San Francisco Summit. China, the spokesperson said, has shared updates with the U.S. on its drug enforcement efforts and responded to U.S. requests for information, rejecting claims that China knowingly permits fentanyl-related exports.  

According to Swati Dhingra, a member of the Bank of England’s monetary policy committee, any proposed 60% tariffs by Donald Trump on imports from China might have complex implications for the global economy by compressing global inflation, “because goods are cheaper for everybody else.”. Speaking at a London conference, Dhingra explained that Chinese exporters might react to such steep tariffs through price-cutting in alternative markets in their efforts to maintain the volumes of trade, an action which could make goods cheaper worldwide, including in the UK.

However, she qualified that the effect will be variable, pending the reaction of other countries. Should governments retaliate by imposing their own tariffs or protectionist moves, a trade war could spiral out of control, damaging the world economy. Higher inflation may be in store for the U.S. since American consumers bear the tariff cost; however, global prices of those kinds of goods may drop as Chinese exporters adjust to new trade barriers. 

As Trump’s proposals spark debate, the implications of his aggressive trade policies remain uncertain. What is clear is that his return to office would bring a sharp shift in U.S. economic and foreign policy, with tariffs once again taking center stage.

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NATO Leader Urges Businesses to Prepare for Wartime Amid Rising Dependence on China and Russia

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A senior NATO military leader has urged companies to prepare for a possible wartime situation by rethinking their supply chains to reduce pressure from rival countries such as Russia and China. Admiral Rob Bauer, chairman of NATO’s Military Committee, stressed that economic reform is as important as military capability in maintaining national security. 

Speaking at an event organized by the European Policy Institute in Brussels, Bauer explained that deterrence is not limited to military force but includes the ability to maintain critical goods and services in any situation. ”If we can make sure that all necessary services and resources can be provided no matter what, that’s an important part of our prevention,” he said.

He highlighted growing threats, including acts of sabotage and geopolitical pressures that have already tested Europe’s resilience. “We thought we had a deal with Gazprom, but in reality, it was a deal with Vladimir Putin,” Bauer noted, referring to Russia’s use of energy supplies as a tool for political leverage. “The same goes for Chinese-owned infrastructure and goods. When we make deals with Chinese companies, we’re effectively making deals with President Xi Jinping.” 

Bauer warned that the West is overly dependent on China for basic supplies. China currently produces 60% of the world’s rare earth resources and processes 90% of them, materials needed for technology, defense and renewable energy. Furthermore, he noted that many medicinal products, such as sedatives, antibiotics, antibiotics, and antihypertensives, come from China.

“We are naïve to think that the Chinese Communist Party never uses this leverage,” Bauer warned.  

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Civic IDEA’s Senior Researcher Ani Kintsurashvili Leads Panel Discussion on Georgia’s Foreign Policy Challenges in Samarkand

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On November 21-22, the Senior Researcher of Civic IDEA, Ani Kintsurashvili, attended the “Mapping Spheres of Influence” data journalism conference, which was organized by Anhor.uz and held in Samarkand, Uzbekistan. 

The event brought together experts and practitioners to explore key issues in data journalism, focusing on the role of reporting in Central Asia, especially in the context of international economic cooperation, as well as the region’s challenges and opportunities. 

During the conference, Ani took the lead in the panel discussion titled “Surviving the New Cold War,” where she shared her insights on the complex foreign policy dynamics facing Georgia. She highlighted the challenges the country faces in navigating its foreign policy, particularly as the ruling party increasingly aligns with Russia and China. Her analysis also contrasted Georgia’s situation with that of the Central Asian nations, providing a broader regional perspective on the shifting geopolitical landscape.

Civic IDEA’s Senior Researcher Ani Kintsurashvili Leads Panel Discussion on Georgia’s Foreign Policy Challenges in Samarkand Read More »

Meeting on Chinese cyber-espionage campaign in the White House

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On November 22nd, the top US telecommunications representatives and National Security officials held a meeting in the White House. The main topic thereof was the Chinese cyber-espionage campaign.

The campaign has great meaning for the sector, seeing as its targets have become the most prominent American political figures, such as newly elected President Donald Trump and vice president JD Vance. Apart from this, according to the US, China-affiliated hackers accessed data meant for American law enforcement via cyber-attacks on telecom companies.

During the meeting, telecom representatives advised the government on the ways it could ensure protection against such attacks. Additionally, the sides exchanged intelligence on these topics.

According to the FBI, the number of victims of the campaign is fewer than 150, although they believe that the damage was spread to many more people through these victims via text messages and calls.

China denies accusations of this cyber-espionage campaign. Chinese Foreign Affairs Ministry speaker made a statement before the above-mentioned meeting took place. On November 14th, he underlined that „[China has] no interest in interfering in other countries’ internal affairs through cyberspace and oppose[s] spreading China-related disinformation out of a political agenda“. State-affiliated media platform Global Times talks about the experts, who „revealed that the US deliberately fabricates evidence of cyberattacks to tarnish China’s image“. To prove this point, they use factors such as the anonymity of the sources and lack of substantive arguments.

 

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From Wall Street to Commerce Secretary: Howard Lutnick to lead Trump’s Trade and Tariff Strategy

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Donald Trump has named Howard Lutnick, a Wall Street businessman, as the next Secretary of the Department of Commerce. In his announcement, Trump praised Lutnick, the CEO of financial firm Cantor Fitzgerald, as a “dynamic force on Wall Street for more than 30 years” and highlighted his leadership on the administration’s “tariff and trade agenda.” 

Lutnick’s nomination follows months of speculation. Initially considered for Treasury Secretary, he faced competition from hedge fund manager Scott Bessent. His appointment to Commerce also came as a surprise, beating out Robert Lighthizer, Trump’s former U.S. Trade Representative, and Linda McMahon, the former head of the Small Business Administration. Both Lighthizer and McMahon were recently informed that Lutnick was Trump’s choice to head the Commerce Department.  

The Department of Commerce, while smaller than the Treasury Department, plays a crucial role in areas where business and national security intersect.  The Secretary’s responsibilities include supporting U.S. businesses, negotiating trade agreements, and fostering foreign investment. Beyond its role in the US-China trade and tech war, its responsibilities include patent approvals, publishing economic data, and conducting the US census. The department also investigates anti-dumping and anti-subsidy cases, often leading to punitive tariffs designed to protect domestic industries.

Fearing that Beijing could exploit American technology to enhance its military capabilities, both the Trump and Biden administrations have aggressively used the Commerce Department’s authority to regulate the flow of U.S. and foreign technologies to China. This effort has particularly focused on semiconductors and the equipment used to manufacture them. Over the past two years, the U.S. has implemented sweeping export controls on advanced chips and chipmaking tools, curtailing China’s access to cutting-edge artificial intelligence technologies and next-generation semiconductor production equipment.

During Trump’s first term, former Commerce Secretary Wilbur Ross was a central figure in the U.S.-China trade war and a vocal advocate for higher tariffs—an agenda Lutnick has also embraced. Lutnick has not been outspoken about China compared to other figures in the administration. However, he is a staunch advocate for tariffs, particularly targeting China. Trump’s campaign pledge to impose a 60% tariff on goods from China and a 10% tariff on goods from other countries aligns closely with Lutnick’s views.  In a recent podcast interview, Lutnick emphasized his support for revenue-driven trade policies, saying, “Don’t tax our people. Make money instead. Put tariffs on China and make $400 billion.”

The next Commerce Secretary will be tasked with enforcing a range of regulations aimed at restricting China’s technological advancements, particularly in artificial intelligence and semiconductors. This includes efforts to keep major Chinese firms, such as Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC), several steps behind their global competitors in key tech sectors. 

From Wall Street to Commerce Secretary: Howard Lutnick to lead Trump’s Trade and Tariff Strategy Read More »

Xi asks Germany to help With EU tariffs on Chinese Electric Vehicles 

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Chinese President Xi Jinping urged German Chancellor Olaf Scholz on Tuesday to facilitate the resolution of the EU’s tariffs on Chinese electric vehicles, as reported by state television CCTV.

During their meeting on the sidelines of the Group of 20 summit in Rio de Janeiro, Xi expressed China’s readiness to collaborate with Germany to strengthen their strategic partnership. He then highlighted the issue of EU tariffs on Chinese-made EVs, which has heightened the risk of a trade conflict between Beijing and the bloc.

The EU green lit significant tariffs on imports of Chinese electric vehicles after receiving broad support from member states. These tariffs are expected to increase from the current 10% to as much as 45% over the next five years.The European Commission, which conducted the vote, emphasized that the EU and China would “work hard to explore an alternative solution” to the tariffs. In response, China’s Commerce Ministry denounced the decision as “unfair” and “unreasonable,” but acknowledged the possibility of resolving the issue through negotiations.

EU member states were divided on imposing tariffs on Chinese electric vehicles. Germany, whose automotive industry relies heavily on exports to China, opposed the tariffs. Many EU members abstained from the vote. However, France, Italy, the Netherlands, and Poland supported the import taxes. The proposal for tariffs could only have been blocked if a qualified majority of 15 member states had voted against it.

The dispute has sparked concerns among industry groups outside the automotive sector about potential retaliatory tariffs from China. A trade body representing the French cognac industry criticized the French authorities, stating they “have abandoned us.” They added, “We do not understand why our sector is being sacrificed in this way.” 

Xi stated, “It is hoped that Europe and China will resolve the issue of electric vehicles through dialogue and negotiation as soon as possible, and the German side is willing to make active efforts in this regard,” according to a readout from Chinese state news agency Xinhua.

A spokesperson for the German government mentioned that Scholz’s meeting with Xi lasted 30 minutes, during which the chancellor also discussed geopolitical issues, including the conflicts in Ukraine and the Middle East.

Xi’s South America tour commenced with his participation at the Asia-Pacific Economic Cooperation forum in Lima, where he inaugurated a Chinese-funded Pacific port. Following the conclusion of the G20 summit on Tuesday, Xi is scheduled to visit Brasilia for a state visit, where he will meet with Brazilian President Luiz Inacio Lula da Silva and sign several cooperation agreements.

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