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Who will attend Donald Trump’s inauguration from China?

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Donald Trump invited the president of China, Xi Jinping, to the Inauguration ceremony on January 20th. However, according to the statement made by the Chinese Foreign Ministry, the Vice President of China, Han Zheng, will be the one attending the ceremony. The statement also underlines the readiness to work with the US government to “pursue stable, healthy and sustainable China-US relations.”

Notably, Trump is the first US president to invite world leaders to the Inauguration ceremony. Despite Xi Jinping’s non-attendance, it is believed that sending the Vice President is symbolic since this action will avoid bruising Trump’s ego.

It is interesting that a phone call took place between Donald Trump and Xi Jinping on January 17th. According to the elected US president, they talked about trade, fentanyl, and  TikTok, as well as other topics, and have agreed to do everything to make the world a “peaceful and safe” place. The Foreign Ministry of China also commented on the dialogue, in which Xi mentioned that two-sided talks are important for both sides and hopes for a good start to USA-China relations during Trump’s second term.

Aside from the above-mentioned, Han Zheng used the Inauguration visit to meet the close circle of Donald Trump – including Tesla CEO Elon Musk, with whom he discussed the trade between the US and China and called on American companies to promote it.  Apart from this, the Chinese Vice President met with the future US Vice President, JD Vance. They discussed topics such as trade and regional security. According to the Chinese state media, Xinhua, Han Zheng talked about the differences between the two states as well but highlighted the space for cooperation, too.

Who will attend Donald Trump’s inauguration from China? Read More »

Chinese hackers’ attack on the computer of the U.S. Treasury Secretary Janet Yellen

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US Treasury Secretary Janet Yellen’s computer was breached, with unclassified files accessed as part of a broader cyberattack on the department attributed to Chinese state-sponsored hackers, according to two individuals familiar with the situation.

The attackers also infiltrated the computers of two of Yellen’s deputies, Deputy Secretary Wally Adeyemo and Acting Under Secretary Brad Smith, said the sources, who requested anonymity due to the sensitive nature of the information. According to one of the sources, fewer than 50 files were accessed on Yellen’s device.

The hackers appeared to concentrate on the Treasury’s functions related to sanctions, intelligence, and international affairs. However, they did not gain access to the department’s email or classified systems, according to a Treasury report previously reviewed by Bloomberg News.

In addition to breaching the computers of top Treasury officials, the hackers infiltrated more than 400 laptop and desktop devices. They obtained usernames, passwords, and over 3,000 files stored on unclassified personal devices, the report reveals.

The intruders also accessed “law enforcement sensitive” information and materials related to investigations by the Committee on Foreign Investment in the U.S., which evaluates the national security risks of certain foreign investments, according to the Treasury report.

BeyondTrust Corp., a software contractor, notified the Treasury on December 8 that hackers had exploited its networks to compromise the department. Treasury then sought assistance from the Cybersecurity and Infrastructure Security Agency, the FBI, and other intelligence agencies.

Investigators attributed the breach to a Chinese state-sponsored group known in cybersecurity circles as Silk Typhoon or UNC5221.

Chinese officials have consistently denied U.S. accusations of state-sponsored hacking. Last month, a spokesperson for China’s foreign ministry dismissed claims that the government was responsible for the Treasury breach as “unwarranted and groundless.”

“China has always opposed all forms of hacker attacks,” Mao Ning, a spokesperson for China’s foreign ministry, said at the time.

In 2023, China was also accused of breaching the email accounts of key U.S. government officials, including Commerce Secretary Gina Raimondo and U.S. Ambassador to China Nicholas Burns, as reported by The Wall Street Journal.

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US Investigation Finds China Using “Unfair” Practices In the Maritime Sector; What Could Happen Next?

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The Biden administration has determined that China employs “unfair policies and practices” to dominate the global shipbuilding, logistics, and maritime sectors, according to three sources familiar with the findings of a months-long trade investigation.

The U.S. Trade Representative (USTR), Katherine Tai, initiated the investigation in April 2024 following a petition from the United Steelworkers and four other U.S. unions. The probe was conducted under Section 301 of the Trade Act of 1974, which allows the U.S. to impose penalties on foreign nations engaging in practices deemed “unjustifiable,” “unreasonable,” or detrimental to U.S. commerce.

Investigators found that China specifically targeted the shipbuilding and maritime sectors for global dominance. They concluded that the country utilized “financial support, barriers for foreign firms, forced technology transfer, intellectual property theft, and procurement policies” to bolster its competitive edge, according to one source who spoke on the condition of anonymity. The report also highlighted that Beijing “severely and artificially suppressed China’s labor costs in the maritime, shipbuilding, and logistics sectors,” the source added.

Although the findings have not been officially confirmed or denied by U.S. officials, they come at a time of growing competition between the two largest economies and as Washington seeks to reduce reliance on Chinese manufacturing and supply chains by rallying allied nations.

Shipyards in Asia, including those in South Korea and Japan, may see some benefits if penalties are imposed on China’s shipbuilders. However, analysts and a senior executive from a major Chinese shipbuilding firm noted that China’s shipbuilding industry, due to its sheer scale and cost advantages, remains robust enough to withstand such measures in the short term. 

According to the data cited by the US probe, China’s share of global shipbuilding has expanded to over 50% in 2023.

“China’s shipbuilders have overtaken the Japanese and the Koreans and everyone under the sun,” said James Chin, a professor of Asian studies at the University of Tasmania.

Chin added that Chinese shipbuilders are “safe in the near term – up to roughly 24 months – from any measures that the U.S. might take.”

US Investigation Finds China Using “Unfair” Practices In the Maritime Sector; What Could Happen Next? Read More »

EU-China Trade Tensions

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Beijing has criticized the European Union for imposing unfair trade barriers on Chinese companies, as the world’s second-largest economy prepares for the possibility of new U.S. tariffs following Donald Trump’s anticipated return to the White House at the end of January.

China’s Ministry of Commerce has published the findings of an investigation, claiming that the European Commission’s selective enforcement of competition policy unfairly discriminates against Chinese companies. In October, the EU increased tariffs on electric cars made in China. Beijing argues that the definition of “foreign subsidies” is subjective and causes unfair harm, warning that it should anticipate retaliation.

A 20-page report from the Chinese Ministry of Commerce indicates that the European Commission has consistently warned companies about potential retaliatory actions for violating regulations and has threatened them with substantial fines. Furthermore, the report claims that some Chinese companies were forced to cancel projects to have investigations against them dropped. According to the Chinese Ministry of Commerce, this has resulted in losses exceeding 15.6 billion yuan, equivalent to approximately $2.13 billion.

Last year, the European Union initiated an investigation into a Chinese train manufacturer that planned to supply trains to Bulgaria. The scope of the investigation was later expanded to include Chinese-owned solar panel companies attempting to build a photovoltaic park in Romania. Additionally, European authorities conducted raids on the Dutch and Polish offices of Nuctech, a Chinese security equipment supplier. In response, Beijing launched its own trade investigation into European products, which could result in increased tariffs on luxury car imports from the EU.

China and the European Union share a strong “symbiotic” economic relationship, and President Xi Jinping expressed hope that the bloc can become a “reliable partner for cooperation” during his conversation with European Council President Antonio Costa on Tuesday. The EU official emphasized the need for Beijing to play a role in contributing to a just and lasting peace in Ukraine.

The EU’s foreign subsidy regulation is designed to safeguard businesses within the bloc’s 27 member states from unfair competition. The regulation grants Brussels the authority to investigate instances where state subsidies are suspected of distorting market conditions.

EU-China Trade Tensions Read More »

China-Russia trade relations reach record highs amid US sanctions

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In 2024, the trade volume between China and Russia increased significantly. The value of Chinese imports and exports to Russia in 2024 was 1.75 trillion yuan ($237 billion), a record high. The value of China-Russia bilateral trade has reached 244.8 billion dollars in 2024, which is 4 billion more than the previous year.

According to the General Administration of Customs of China, China-Russia yuan-denominated trade value increased by 2.9% in 2024 compared to 2023, although this growth was much slower than in 2023. At the same time, the supply of Chinese goods to Russia in 2024 increased by 5% in yuan terms in 2024 compared to the previous year, which is sharply below the 53.9% increase in 2023.

Such close economic ties between China and Russia have long been a subject of attention for America. Back in July 2024, Biden made a clear statement that China and Xi Jinping would definitely have to be held accountable for providing Russia with a lot of help in the fight against Ukraine.

According to Russian President Vladimir Putin, the main challenge for trade between China and Russia is the agreement on settlement and payment methods for each other. Despite this, Putin emphasized that in 2024 the relations between the two states reached an unprecedented level, which he assessed as a positive process. In his New Year’s greetings to Putin, Chinese President Xi Jinping expressed a similar position and said that China and Russia have always “hand in hand” moved forward in the right direction. Russia’s state news agency RIA also reported a promise made by Moscow’s ambassador to Beijing in December that Xi Jinping would visit Russia in 2025.

Increased trade between China and Russia is due to Western sanctions against Russia. As Alfredo Montuffar-Helou, head of the China Center of the Conference Board, a US-based think tank, states, Russian consumers have fewer alternatives to choose from in the domestic market due to Western sanctions, which increases the demand for Chinese goods. According to his prediction, the trade between these two states will continue in 2025 as well, as China becomes a bigger market for Russian exports, Chinese products fill the deficit caused by the limited supply of products from Western countries to the Russian market.

However, this bilateral trade will face a big test in 2025. On January 10, the US Treasury Department announced the imposition of additional sanctions against the Russian energy sector. The sanctions target Gazprom Neft and Surgutneftegaz, two of Russia’s most important oil producers and exporters, as well as block 183 vessels to cut Moscow’s energy revenues. The States believe that the energy industry is the Kremlin’s main source of income, which allows it to finance military aggression in Ukraine.

Cui Dongshu, the general secretary of the China Passenger Car Association, told Chinese media that in 2025, the export of cars to Russia may even decrease, which is caused by the increase in taxes.

US Treasury Secretary Janet Yellen warned Chinese Vice Premier He Lifeng during the talks that Chinese firms would face repercussions and consequences if they provided material aid to Russia against Ukraine.

China-Russia trade relations reach record highs amid US sanctions Read More »

Chinese cyber-espionage campaign reached the US Foreign Investments Office

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According to CNN, Chinese hackers breached the US government office, which assesses foreign investment in the context of national security. This action underlines the Chinese interest in American institutions that have the power to block Chinese investments in the US once more.

The targeted office of the hacking campaign, the US Foreign Investment Committee (CFIUS), expanded its authority to learn about the sales of real estate near the US military bases extensively since national security experts believe that China or its proxies could purchase the lands to spy on said bases.

Aside from CFIUS, the hacking campaign reached the Office of Foreign Assets Control as well, which is responsible for sanctions enforcement. Notably, the office recently sanctioned a Chinese company for alleged involvement in cyber attacks.

According to an article published by Bloomberg, Silk Typhoon, a Chinese group, is behind these cyber attacks. The group was involved in an attack on Microsoft Exchange Server as well.

The Chinese embassy in Washington, D.C., spokesperson Liu Pengyu denied Chinese involvement in hacking operations once again.

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Biden extends sanctions on Hong Kong officials

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US President Joe Biden has signed legislation extending the Hong Kong Human Rights and Democracy Act of 2019 for another five years. The Act authorizes sanctions on key Chinese officials and authority figures, justified by violations of Hong Kong’s autonomy and the suppression of fundamental rights, including freedom of expression and assembly.

The legislation is included in the annual National Defense Authorization Act (NDAA), which outlines the budget and U.S. military policy for the upcoming fiscal year. Alongside the extension of the Hong Kong Act, the Reciprocal Access to Tibet Act and the Uyghur Human Rights Policy Act were also renewed.

Hong Kong and Beijing have condemned the U.S. sanctions, warning Washington that such measures are ultimately detrimental to the United States itself. They argue that the sanctions risk undermining the longstanding trade relationship between the U.S. and Hong Kong.

The severity of U.S. sanctions is reinforced by the dominant influence of the U.S. dollar in the global financial system. Individuals targeted by these measures face both financial restrictions and travel bans, amplifying the impact of the sanctions.

Hong Kong’s current Chief Security Officer, Carrie Lam, has stated that she evaded U.S. sanctions by receiving her salary in cash and keeping it at her residence.

In addition to the above, the U.S. State Department announced further sanctions in November, primarily focusing on visa restrictions.

The decision to impose these measures was made by the U.S. after 45 opposition representatives were arrested in Hong Kong on charges of attempting to overthrow the government.

In response, China is imposing sanctions on American individuals whose actions (concerning Hong Kong) it deems unfavorable.

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Russia is Reducing Investments in One of the Main Sectors of Trade with China

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One of Russia’s main trade channels with China is experiencing significant disruptions as Russia’s war-torn economy, under pressure, has significantly slowed the country’s railway industry. It should also be noted that the railway system is a necessary component for trade between Moscow and Beijing.

During the first nine months of 2023, more than 128 million tons of cargo were transported by rail between the two countries. This represents a 51.5 percent increase over the same period in 2022 recorded last year.

Sanctions have made it more difficult for Russian exports and imports of technology. Russia has increased its imports of military technology and equipment from “Third World” countries, including China. According to the Atlantic Council, increased rail trade with China has thwarted the desired goal of Western sanctions, involving isolating Russia’s economy and fueling Putin’s wartime resource shortages. 

Despite the positive indicators recorded last year, the current situation does not look so favorable. Russia’s rail industry is facing its sharpest slowdown since the Great Financial Crisis, and the trend is on the rise, according to a report from Russian research firm MMI Research. 

MMI data cited by Bloomberg show that the volume of cargo carried by Russian State Railways in the first 11 months of 2024 fell by 5% compared to last year. This slowdown is partly due to Russia prioritizing the transportation of war-related materials. All this hampered the transportation of such important goods as coal and aluminum.

The reduction of investments in Russian railways is another factor that causes the mentioned slowdown. According to the state news agency Tass, high interest rates in the country make project financing even more difficult.

In addition, as reported by Tass, in 2025 Russian Railways plans to allocate only 890 billion rubles ($8.5 billion) for the investment program, which means that compared to 2024, this figure will decrease by 30%. As reported by the Russian news outlet Kommersant, the company may reduce investments by another third by the end of the decade.

The changes are also bad news for Russia’s trade with China, which depends on rail transport due to Western sanctions. Russia invested billions in railways in early 2024 to boost trade with China, but ongoing economic woes continue to hamper progress.

The issues discussed above highlight the growing costs of Russia’s war against Ukraine, which is causing the country many economic challenges. It is also significant that earlier this year, to combat high inflation, the Central Bank of Russia raised interest rates to a record 21%. In a decision last week, the bank kept interest rates on hold because of what they believe are risks of excessive cooling in Russia’s war economy.

It should be noted that Russia’s military strategy is completely dependent on its railway networks. Railroads are logistically critical to Putin’s all-out war in Ukraine. With relatively limited alternatives for large-scale transportation, Russia needs efficient railroads to move troops, equipment, and supplies.

Ukrainian intelligence services and guerrilla groups are working with Russian anti-war groups to strategically target Russian railway logistics points. “Stop the Wagons” is one of the most famous Russian political groups that express their opposition to Russia’s war in Ukraine by sabotaging railway infrastructure.

Russia is Reducing Investments in One of the Main Sectors of Trade with China Read More »

New wave of mass protests in Serbia – students demand release of documents on train station restored by Chinese companies

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After nearly two months of non-stop demonstrations, the largest protest in decades took place in Belgrade, the capital of Serbia, on Sunday, December 22. Since the first week of November, protesters have been demanding the resignation of President Vučić and his ruling party, the Serbian Progressive Party. They accuse the current leader of corruption, nepotism and lack of transparency– all of that, as they think, has been s a concomitant event during the renovation works in Novi Sad.

The train station has undergone two renovations in recent years as part of questionable mega projects involving Chinese state-owned enterprises. All these led to poor workmanship and ultimately to the death of 15 people on November 1 when a ceiling collapsed at the Novi Sad train station.  

The Novi Sad railway station underwent a major renovation as part of a Chinese-led project to upgrade Serbia’s railway network, focusing on the route north from Belgrade. This effort is tied to China’s expansive Belt and Road Initiative, aimed at speeding up the transport of Chinese goods to Europe.

Renovation work began in 2021, with parts of the station unveiled during the 2022 election campaign. However, reconstruction continued until July 2024, when local authorities announced that the station had been rebuilt “to European standards.” According to Novi Sad news outlet 021, key documents related to the renovation were classified as confidential.

Chinese investments in Serbia—spanning infrastructure, mining, and surveillance—have often been surrounded by controversy, with persistent concerns about standards and transparency. In 2021, a construction permit was issued for the complete overhaul of the railway infrastructure between Novi Sad and the Hungarian border. The permit mentioned the “reconstruction, adaptation, and extension” of Novi Sad’s railway station but didn’t specify which parts of the building would be impacted. Among the supporting documents was a project titled “Architecture Project for the Extension and Adaptation of the Underpass and Canopy of the Novi Sad Railway Station,” though it offered no additional details.

Within days of the catastrophic event, Transport Minister Goran Sevic, the Serbian State Railways Company, the State Transport Institute, and the Chinese consortium – China Railway International Co. Ltd. and China Communications Construction Company (CRIC-CCCC), which was involved in the renovation of the building, denied the allegations and stated that the ceiling that collapsed was not part of their work. But they were soon exposed. The footage shared on social media indicates that the collapse may have been triggered by the weight of newly installed heavy glass. “It’s not true that no work was done on the awning, because it was covered with glass post-factum,” said geologist and engineer Zoran Đajić, who supervised the railway station reconstruction works until 2023, to the domestic press. 

Although CRIC and CCCC assert that they did not directly construct the canopy, legal experts contend that, as umbrella contractors, they hold responsibility for the performance of their subcontractors. This brings up wider concerns regarding the quality and safety of BRI projects, especially those involving local subcontractors.

When asked about unconfirmed reports of an extraordinary inspection of other projects involving CRIC and CCCC, Vucevic stated, “I will never take part in this potential anti-Chinese hysteria that is being imposed…“. After, he also mentioned sarcastically, that maybe they should arrest all the representatives of Chinese companies.

To eliminate the lack of transparency and identify the main culprits, the participants of the action are demanding the opening of restoration work documents and declarations, as well as holding those responsible for the case accountable.

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China imposed sanctions on two Canadian institutes and their employees

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China announced sanctions against two Canadian institutes and 20 individuals. These measures targeted the Uygur Rights Advocacy Project, the Canada Tibet Committee, and their employees. With the sanctions, China froze their assets and barred them from entering the country.

The organization working on the rights of the Uygurs frequently talks about the human rights violations from Beijing concerning this mostly Muslim ethnic minority, which includes the mass use of forced labor in camps. The Chinese side denies the accusations.

As for the Canada Tibet Committee, it aims to research the seizure of control of Tibet by China in 1950 and what’s described as „oppressive rule“ in Tibetan areas by international human rights groups and exiles.

Notably, the Chinese sanctions are viewed as countermeasures to Canadian sanctions announced on December 10th. The Canadian side based its decision on Chinese state-led human rights violations against religious and ethnic minorities. In the statement, they focused on Xinjiang, mostly populated by Uygurs, and Tibet, as well as those who face problems for practicing the Falun Gong religion. The sanctions imposed by Canada include the freezing of assets of eight former and current Chinese officials. Chinese Foreign Affairs Ministry speaker talked about the history of human rights violations from the Canadian side in response to this step taken by Ottawa and stated, that Canada often „spreads lies about the so-called human rights issue in China“.

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