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“Tough on China” Marco Rubio nominated as the US Secretary of State

Donald Trump nominated Marco Rubio, distinguished by his strictness towards China, as the Secretary of State. According to Reuters, this is a signal to Beijing that the new administration’s tough policy toward China may go beyond tariffs and include tougher tools. 

It is expected that the Senate will easily support Rubio’s nomination. Rubio holds senior positions in the Senate Foreign Relations and Intelligence Committees.

Rubio, described in a Senate biography as “a leading figure in rebalancing relations with China,” is a leading critic of China’s economic practices. Chinese media often refer to him as an “anti-China pioneer”. In his latest report on China’s industrial policy, Rubio writes that “through theft, market-distorting subsidies and strategic planning, Beijing now leads many of the industries that will define geopolitical advantage in the 21st century.” 

David Firestein, a former U.S. diplomat with expertise on China, said, “Rubio believes in his heart that China is an enemy of the United States.” He added, “That’s going to color everything he does with respect to China,” noting that Rubio’s view of zero-sum competition with China would “raise the decibel level” of U.S.-China relations. 

One of the important China-related issues that Rubio focuses on is the human rights record in the People’s Republic. He was one of the supporters of the Uyghur Forced Labor Prevention Act. The act was intended to ban the import of Chinese products into the United States in response to violations of the rights of Muslim minorities in China. His open stance on the Uyghurs was one of the reasons why China sanctioned Rubio in 2020. 

Interestingly, Rubio has twice been the target of sanctions from Beijing. In 2020, the People’s Republic sanctioned Rubio for his support of the Hong Kong demonstrations. Rubio would be the first US secretary of state to be subject to active travel restrictions from China. Notably, Rubio, in turn, called for US visa sanctions against Chinese officials. In 2023, Rubio urged the State Department to bar US-sanctioned Hong Kong Chief Executive John Lee from attending the Asia-Pacific Economic Cooperation Summit in San Francisco. 

It is noteworthy that over the past years, Rubio has considered China a threat to US national security. He was one of the leading figures in the effort to blacklist a Chinese battery company, CATL. Rubio has advocated limiting tax benefits for American companies investing in China and tightening restrictions on the export of American technology to China. 

It is noteworthy that Rubio accused China of facilitating the conflict in Ukraine, as he considered the Russian attack to be part of the Chinese strategy, which aims to replace the existing world order with the “Moscow-Beijing axis”. Therefore, he supported the legislative initiatives that aimed at reducing China’s political or economic influence. 

Trump’s Secretary of State nominee’s strong support for Taiwan may be particularly uncomfortable for Beijing. Rubio supported a free trade agreement and unrestricted relations between US and Taiwan officials. Analysts predict that Taiwan will buy more weapons from the US during Trump’s presidency than before and will likely receive favorable terms from Rubio’s State Department. 

The Chinese embassy in Washington did not comment on Rubio’s nomination for secretary of state. Meanwhile, embassy spokesman Liu Pengyu expressed hope that Beijing would work with the new administration to promote the development of relations in a “stable, healthy, and sustainable direction”.

 

“Tough on China” Marco Rubio nominated as the US Secretary of State Read More »

Trump to Name China Hawks for Key Security and Foreign Policy Roles

In a move signaling a tougher stance on Beijing, President-elect Trump has chosen key figures known for their hawkish views on China for top cabinet roles. John Ratcliffe, Pete Hegseth, and Michael Waltz are set for high-ranking positions in national security, all perceiving China as a major geopolitical threat.

Multiple sources have confirmed the possibility of appointing Michael Waltz, a Republican congressman, war veteran, and retired National Guard officer, to the position of national security adviser. 

Naming Waltz is a “strong sign that Trump’s foreign policy priority will focus on China above all else,” said Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute’s Center for China Analysis. Though there will be a near-term focus on resolving the wars overseas, “over the next four years, China — by far and away — will be the major focus,” he said. 

Waltz has been a huge critic of China and supports a more aggressive foreign policy. The congressman opposed the idea of the US participating in the 2022 Winter Olympics in Beijing. His reason behind the boycott was his belief that China suppressed information about COVID-19 during the pandemic outbreak. In 2021, Waltz asserted that America is in “a Cold War with the Chinese Communist Party.” 

In an alarming manner to the Chinese government, Waltz strongly supports Taiwanese independence, stating on X: “We must learn from Ukraine by addressing the threat of the CCP (Chinese Communist Party) and arming Taiwan NOW before it’s too late”. Although the USA, like most states, does not officially recognize Taiwan, it is the largest weapons supplier to the island country. 

Waltz was the one who raised concerns in 2022 about the Canada-China business deal. Under the deal’s conditions, a Chinese state-owned company, China’s Zijin Mining Group Ltd., took over the Canadian lithium mining firm, Neo Lithium Corp. He called out Biden’s administration and demanded the answer if they knew about the potential deal, and if they did, then why approve of it? Waltz stated that there were national security concerns, as he considers the Chinese Communist Party as “an increasingly dangerous and threatening adversary.” 

In 2020 Michael Waltz co-authored a Republican Study Committee (RSC) report on National Security Strategy. The report described Bidzina Ivanishvili, the Georgian Dream honorary chair and oligarch, as “a close ally of Putin.”

The report advocated for stronger measures to support NATO, reinforce alliances, and strengthen democratic partners like Ukraine and Georgia, both of which have faced Russian aggression. It criticized existing sanctions on Russia for inadequately addressing “Putin’s foreign cronies,” specifically naming Ivanishvili, stating, “Bidzina Ivanishvili, the richest man in Georgia, is a close ally of Putin and involved in destabilizing Georgia on Russia’s behalf.”

A 50-year-old retired Army Green Beret and National Guard colonel, known for his long-standing stance as a China hawk will spearhead efforts to develop strategies to counter China’s significant military buildup—a key focus of Trump and his campaign team in the election. Waltz has already advised the US to be more careful of the potential conflict in the region caused by China’s nonstop activities in the Asia-Pacific. 

The national security adviser occupies a highly influential role that bypasses the need for Senate confirmation. Waltz’s responsibilities will include briefing Trump on essential national security issues and ensuring coordination among various agencies.

Trump to Name China Hawks for Key Security and Foreign Policy Roles Read More »

Vietnam expands chip packaging footprint as investors reduce China links

Foreign companies are expanding their chip testing and packaging capabilities in Vietnam. According to Reuters, due to strained relations between the West and China, chip-related industrial activity is gathering pace to move away from China. 

The semiconductor manufacturing sector is currently dominated by China and Taiwan, although Vietnam is among the fastest-growing countries. 

Hana Micron’s vice president in Vietnam, Cho Hyung Rae, told Reuters the company was expanded to the country to meet demand from customers looking to outsource some of their production from China. 

The South Korean company plans to invest $903.49 million in its memory chip packaging operations in Vietnam. Last year, US-based Amkor Technology unveiled a $1.6 billion plan to build a state-of-the-art semiconductor manufacturing facility. 

The Biden administration has encouraged the growth of Vietnam’s capacity in the “back-end” segment of chip manufacturing amid strained trade relations between Washington and Beijing. In July 2023, Biden’s Secretary of the Treasury Janet Yellen visited Hanoi to meet with Prime Minister Phạm Minh Chinh and discuss deepening US-Vietnam trade and economic relations; She made a direct reference to Vietnam’s critical role in the semiconductor industry and named American semiconductor manufacturing companies that have branches in Vietnam. Arizona-based Amkor Technology was among the companies mentioned. 

According to the U.S. Semiconductor Industry Association and the Boston Consulting Group, Vietnam’s share of the global chip assembly, testing, and packaging industry will be 8-9% by 2032 due to large investments by foreign companies. This figure was 1% in 2022.

Source: Reuters

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How is the potential Chinese investor in Anaklia linked to the tragic incident in Serbia that left 14 people dead?

The incident in Serbia, which led to the tragic loss of 14 lives, occurred at a railway station renovated by the same company now considered a potential Chinese investor in the Anaklia port project.

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China’s Nuctech launches new appeal against EU inspection of company

Chinese security company Nuctech has filed a new lawsuit against the European Union, challenging the European Court of Justice’s decision to dismiss its previous case regarding company inspections. Nuctech had initially sought to suspend the EU’s inspection of its operations. 

“We believe the court “decision lacked sound legal reasoning and failed to provide a convincing justification for the refusal,” Nuctech stated. The company has now appealed the ruling at the European Court of Justice in Luxembourg. 

In a statement, a Nuctech Europe representative affirmed that the company would defend its rights and expressed readiness to cooperate with the European Commission. “We believe the appeal process will result in a more fair and reasonable outcome,” the representative added. 

Nuctech had initially filed a lawsuit against the European Commission following raids on its Dutch and Polish offices, arguing that there was insufficient evidence to justify the inspections. 

In its ruling, the court upheld the European Commission’s authority to investigate and request information from any business operating within the EU, regardless of ownership—whether by member states or non-member countries—to ensure compliance with EU regulations and prevent potential violations of the law. 

Nuctech manufactures body and baggage scanners for airports and ports in over 170 countries. It is one of several Chinese companies blacklisted by the U.S. government as a threat to national security.

Source: https://www.reuters.com/business/chinas-nuctech-launches-new-appeal-against-eu-inspection-company-2024-10-23/

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China has confirmed an agreement to settle the border dispute with India

China has officially confirmed reaching an agreement with India regarding their long- standing border dispute. However, the specific details of the agreement have not been disclosed to the media, leaving it unclear whether the deal addresses the entire border or focuses on specific areas contested since 2020. 

Tensions between China and India have been high since a deadly clash in the Ladakh region of the western Himalayas four years ago, where 20 Indian and 4 Chinese soldiers were killed along the undemarcated border. 

On Monday, Indian Foreign Minister Subrahmanyam Jaishankar announced that the two nations had agreed on border patrol arrangements, marking progress toward resolving the military standoff. However, China did not immediately confirm this statement. 

On Tuesday, Chinese Foreign Ministry spokesperson Lin Jian stated, “China and India have recently managed to address border-related issues through diplomatic and military channels.”He added that both sides have settled these matters, which China views positively, and that further cooperation will follow to fully implement the agreement.

Source: https://www.reuters.com/world/asia-pacific/china-implement-solutions-with-india-resolving-border-conflict-2024-10-22/

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China’s youth unemployment rate has been declining.

In September, the unemployment rate among young people aged 16 to 24 (excluding students) fell to 17.6%, down from 18.8% in August. Earlier this year, in June, the unemployment rate among young people and recent college graduates was 13.2%, but it surged to 17.1% in July.

This sharp increase was driven by the entry of approximately 12 million students into the labor market. The upward trend continued through August, peaking at 18.8%, marking the highest rate in 2024. In response, the National Bureau of Statistics decided to revise its methodology. 

Previously, the National Bureau of Statistics did not factor students into the calculation of the unemployment rate. However, after the rate hit a record 21.3% in June last year, the bureau chose to include the student population in its assessment. Despite these fluctuations, officials remain optimistic that China’s economy, the world’s second-largest, “will maintain a trend of stabilization and recovery” 

However, a separate official survey conducted in September on factory owners' confidence showed that many remain hesitant to hire new workers.

Source: https://www.reuters.com/world/china/chinas-sept-youth-jobless-rate-176-compared-with-188-august-2024-10-22/

China’s youth unemployment rate has been declining. Read More »

Xi Jinping has called on China’s missile forces to enhance their deterrence and combat capabilities

On Saturday, the President of the People’s Republic of China inspected a brigade of the People’s Liberation Army (PLA) Missile Force, urging restraint while emphasizing the need for heightened military readiness. In his address, Xi called on personnel within the Strategic Missile Forces to “resolutely fulfill the tasks assigned by the Party and the people” according to state news agency Xinhua. 

The PLA Missile Force, responsible for overseeing China’s conventional and nuclear missiles, has been directed to modernize its nuclear arsenal in response to evolving global conditions, including U.S. missile defense advancements, improved surveillance systems, and strengthened alliances.

 Xi underscored the importance of “adhering to political directives, enhancing mission responsibility” and “advancing the high-quality development of force building” as reported by Chinese media outlet Cailianshe. 

Last month, China launched an intercontinental ballistic missile into the Pacific Ocean, drawing heightened international scrutiny on the nation’s expanding nuclear capabilities. 

It is also noteworthy that China has been conducting a large-scale anti-corruption campaign within its military since last year, resulting in several missile force generals stepping down from their positions in the national legislature.

Source: https://www.reuters.com/world/asia-pacific/chinas-xi-urges-missile-troops-boost-deterrence-combat-capabilities-2024-10-19/

 

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China urges swift implementation of expansive financial policies

China’s central bank, along with financial regulators, recently held meetings with major financial institutions, urging them to take immediate measures to bolster the economy and support capital markets.

The People’s Bank of China (PBOC) called on financial institutions to increase credit support to the real economy and ensure a stable growth of monetary supply and credit, according to a statement on the PBOC’s official website. The central bank also encouraged adjustments to interest rates and endorsed two financing schemes aimed at supporting the stock market.

The meeting, co-chaired by China’s banking and securities regulatory bodies, was attended by representatives from banks, brokerages, and stock companies. 

In late September, the PBOC implemented aggressive monetary measures to stabilize the property and stock markets in the aftermath of the COVID-19 pandemic. For the first time in its history, the central bank introduced two monetary policy instruments designed to support the stock market: a swap program for brokers, funds, and insurers, and a loan re-issuance facility to enable these institutions to purchase shares. 

The swift implementation of these tools is expected to help China achieve its targeted 5% economic growth for the year.

The PBOC stated it would “enhance inter-departmental coordination, create synergies, and fully leverage these tools to strengthen market confidence, improve public expectations, and promote sustainable economic recovery” 

It is noteworthy that recent data shows China’s economy grew by 4.6% in the third quarter of 2023.

source: https://www.reuters.com/markets/asia/china-urges-swift-implementation-expansive-financial-policies-2024-10-18/

China urges swift implementation of expansive financial policies Read More »

China urges India to handle Taiwan issue cautiously after Mumbai office opening

Following the opening of Taiwan’s de facto consulate in Mumbai, China has urged India to exercise caution on matters related to Taiwan, warning against actions that could negatively impact the ongoing improvement of Sino-Indian relations. 

Chinese Foreign Ministry spokesperson Mao Ning, during a press conference, reiterated China’s firm opposition to any state’s official engagement with Taiwan. 

This statement came in response to the establishment of Taiwan’s de facto consulate in Mumbai, which has added tension to the bilateral relationship between China and India. 

Taiwanese authorities, in turn, reject China’s claims of sovereignty over the island and its representation in international affairs. 

“The One China principle is a significant political commitment for India and the political cornerstone of China-India relations” Mao Ning emphasized, urging India to honor its commitments, handle Taiwan-related matters prudently, and avoid engaging in any official ties with Taiwan.

Source: https://www.reuters.com/world/asia-pacific/china-urges-india-handle-taiwan-issue-cautiously-after-mumbai-office-opening-2024-10-17/

China urges India to handle Taiwan issue cautiously after Mumbai office opening Read More »

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