Table.Briefing: China

ASEAN summit + Huawei antennas

Dear reader,

Recently BRICS, now ASEAN, and next weekend, G20. Everywhere, the People’s Republic works towards a new world order – ideally with considerable Chinese involvement. This is supported by China’s huge economic assets, which the country sells as a win-win situation, especially in its relations with its junior partners.

Frank Sieren reports that despite considerable territorial disputes in the South China Sea with the ASEAN states, rapprochements are indeed happening. A railway connection here, an agreement there. Economic dependence yields compliance. Let’s see how far Beijing can advance its interests with this strategy without upsetting its partners. India, for one, was quite angered immediately after the BRICS summit by new Chinese maps in school textbooks that label large parts of Indian territory as part of the People’s Republic.

Perhaps that is why China’s President Xi Jinping is avoiding a cold reception from his neighbor and won’t even travel to the G20 in New Delhi. Or does he want to show the world that this forum is no longer worth a weekend of travel? Who knows? He has been traveling a lot lately, after all. And according to Xi’s perceptions, the G20 is losing importance anyway.

Not only Chinese politics, but also Chinese technology is changing the world. The German Federal Ministry of the Interior doubts whether this is in line with German security interests. At the very least, it is now also examining stricter specifications for components of Chinese providers in the construction of the access network, as Finn Mayer-Kuckuk writes. So far, the focus has been on the core network.

Incidentally, China itself already stipulated in the 1990s the development of its own technologies and the avoidance of foreign components in its network construction as far as possible. For reasons of national security. You never know who you’re going to bring into your house.

Your
Marcel Grzanna
Image of Marcel  Grzanna

Feature

Li Qiang courts Southeast Asia

The venue of the ASEAN summit on Monday at the foreign ministers’ meeting. The heads of government will arrive on Tuesday.

In the run-up to the ASEAN summit, it becomes clear how torn the Southeast Asian states are about China. On the one hand, they want to cooperate ever more closely with China for economic reasons, but on the other hand, they are unwilling to let their differences with Beijing slide.

This applies above all to the conflicts in the South China Sea. China is increasingly expanding in this region at the expense of its neighbors by occupying and building on atolls that are also claimed by several other countries.

ASEAN, an association of Southeast Asian nations, was founded in 1967 and held its first summit in 1976 in Indonesia. On Bali, to be precise. Today, its members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

China as the largest trading partner

Indonesia is currently also the chair of the group and thus hosts the summit, which will start on Tuesday. With a share of around three percent, all countries combined have the same economic importance as Japan alone. China, on the other hand, has a share of 18 percent, adjusted for purchasing power.

China is the largest trading partner of all ten countries and the largest single donor of development assistance to the region. Since 2015, it has provided around 5.5 billion US dollars in real terms. That is why Singapore’s Prime Minister Lee Hsien Loong also acknowledges that ASEAN economically depends on China.

Successful growth region

Asean covers Asia’s major developing countries. Economists estimate that the group will grow by over five percent this year. This means that growth is at least as high, but possibly higher, than China’s. Cooperation between ASEAN and China focuses on large infrastructure projects:

  • A high-speed railway line was built in Laos.
  • The East Coast Raillink (ECRL) is a 660-kilometer infrastructure project for a two-track dedicated rail link in Malaysia.
  • This year, an approximately 142-kilometer high-speed line from Bandung to Jakarta in Indonesia was completed.
  • The Chinese have also been building a large port in Malacca (Malaysia) for the past two years. Once finished, the port is expected to help relieve the pressure on the port in Singapore.

As far as such infrastructure measures are concerned, China is by far the most important player in the ASEAN countries.

Beijing funds infrastructure

In foreign policy terms, ASEAN predominantly shares the concept of balancing the influence of the USA and China in the region, thus playing the superpowers against each other. A good example of this balancing act is the policy of the Philippines under the new President, Ferdinand Marcos Jr. In May 2022, he won the presidential election and subsequently readjusted the Philippines’ Sino-American relations.

Marcos has intensified the economic relationship with China, while reviving a military agreement with the United States amid tensions over a reef called “Ren’ai” for China, the Ayungin Shoal for the Philippines, and the Second Thomas Shoal internationally.

The Philippines generally allows the US military to again use more naval bases. Part of the reason is the heightened tensions. As recently as 5 August, a Chinese coast guard boat blocked a Philippine navy vessel in the Spratly Islands area and fired a water cannon at it, forcing the Philippine vessel to turn around.

Three ASEAN Summits

The fact that there will be three ASEAN summits shows how challenging this balancing process is:

  • First, the China-Asean summit from September 5 to 8,
  • then the ASEAN+3 Summit with China, Japan and South Korea,
  • as well as the actual ASEAN summit in Jakarta.

US President Joe Biden will travel to the G20 summit in Delhi, which will be held shortly afterward, and Vice President Kamala Harris to the ASEAN summit. Chinese Premier Li Qiang, on the other hand, will attend all three summits.

Li accuses Biden of manipulating ASEAN

In addition, Premier Li will meet President Joko Widodo in Indonesia. Indonesia is one of the most important countries in the group. Southeast Asia’s largest and most populous economy continues to maintain close ties with Beijing despite all sorts of ongoing tensions in the South China Sea. Li’s four-day trip is his first official visit to an ASEAN member country since taking office in March.

Beijing’s interest is clear: The Chinese government is primarily committed to ensuring that the problems of the ASEAN countries are settled mainly between Asian countries and not, for example, with the help of the Americans or other Western countries.

On the other hand, the ASEAN countries are quite open to balancing the unequal power distribution with the help of the USA and creating a counterweight to China. This does not go down well with Beijing. Without explicitly naming the United States, Foreign Minister Wang Yi accused “external forces” of “manipulating ASEAN.”

Slowing down China with the help of the USA

In turn, the involvement of the Americans, in particular, guarantees the ASEAN countries that the Chinese will not cross the line. However, they are not hellbent on siding with either side but, above all, on having a choice. Depending on the issue, they want to work with both the US and China.

This summit will also determine the position of ASEAN at the subsequent G20 summit in New Delhi. Indonesia will represent them at the G20.

Huawei: Germany considers even stricter requirements

Cellular towers could now also become part of the rip-and-replace strategy.

The German Federal Ministry of the Interior (BMI) has once again raised critical questions about Chinese network equipment with German telecommunications providers. They are now expected to provide information on the access network, i.e., the actual antennas, within a week. Minister Nancy Faeser is thus again following up on a survey from last spring. The BMI confirmed this to Table.Media. The German newspaper Die Welt first reported on the matter.

The Ministry has already received the responses to the March survey. Apparently, its staff are now going into detail where they suspect particular vulnerabilities. There are indications that the use of the Chinese components could “impair the public order or security of the Federal Republic.” For providers Telekom, Vodafone and Telefónica, however, this process entails considerable work.

More European parts

The BMI, in turn, is thus implementing the government’s cyber security strategy, among other things. It stipulates that no suppliers who are under the influence of a rival power are to be allowed in critical infrastructure. However, all Chinese companies are obliged to cooperate with government agencies.

There is no concrete evidence of acute security risks posed by the numerous Huawei components used in Germany’s wireless and data networks. But in the government’s view, the rethinking since Russia’s attack on Ukraine demands the examination of such scenarios and the precise assessment of the risks. The German government intends to complete the review in the coming weeks.

At the same time, the German public favors more European autonomy in network technology. China, for its part, already imposed severe restrictions on foreign technologies within the People’s Republic in the 1990s in order to minimize security risks.

Core network and access network

The current debate now also explicitly includes the access network, after revolving mainly around the core network.

  • The radio access network (RAN) consists primarily of the actual antennas that make contact with mobile phones and send digital data back and forth through the air.
  • The core network connects customers nationwide in the background. It operates much closer to the handling of client data. Its breakdown at a central location would shut down many connections.

As a large Huawei customer, Telekom attempted to appease the German authorities by removing the Chinese parts from the core network, but wanted to keep them in the access network.

So the BMI’s latest move marks a clear step up in the pressure on the three telecommunications providers. The more Huawei parts they get to keep, the more money they save – and the sooner they can focus on further expanding Germany’s slow networks.

Because long-term contracts with Huawei are still valid, Telekom continues to install equipment from the Chinese global market leader even today. On the other hand, the BMI has made it clear that it will insist on removing the Huawei parts if the audit finds credible evidence of risks.

China strategy and China components

However, Minister Faeser has little choice but to take a very close look at the networks. The protection of critical infrastructure is also firmly anchored in Germany’s China strategy published this July. While the government is planning a dedicated critical infrastructure law, it references existing 5G rules in the China strategy.

What is clear is that no foreign state can be allowed to sabotage data transmission in Germany by simple means. In April, Politico reported that an energy management function in particular had the Interior Ministry worried. The rumors in Berlin are that China could use it to shut down parts of the network via remote maintenance.

‘Shockingly short deadline’

Faeser is now putting her foot down regarding the implementation of the strategies to reduce provider risks. As Die Welt reports from Germany’s telecommunications provider circles, experts said the deadline for answering the new detailed questions was shockingly short.

In the first round, providers had provided a comprehensive list of all Chinese parts. Now, the BMI is responding with lists of detailed questions. According to the Welt report, this can hardly be done in five working days. Collaboration: Franziska Klemenz, Corinna Visser

Translation missing.

News

Xi Jinping skips G20

China’s President Xi Jinping will not travel to the G20 summit in India next weekend. Instead, Premier Li Qiang will represent the interests of his country as the highest representative of the People’s Republic. This was confirmed by the Chinese Foreign Ministry on Monday, without giving a reason for Xi’s absence. It is the first time since taking office that Xi has decided not to attend the G20.

Xi’s cancellation comes a few days after China’s Minister of Commerce Wang Wentao stood in for him at an important speech at last week’s BRICS Summit in South Africa. Whether Xi will not attend the G20 meeting for reasons of health, strategy or domestic politics is still unclear.

It is also unclear whether India’s head of state Modi sees Xi’s absence as an insult. Within the BRICS alliance, Modi’s democratically elected government pursues different interests than China in many areas. Both countries have quarreled over large territories in shared border regions for years.

It will also be interesting to see how other BRICS countries such as Brazil, South Africa or the future members Argentina and Saudi Arabia will perceive Xi’s absence. They may see Xi’s absence as a sign of disrespect for the G20 and a signal for a departure into a multipolar world order. On the other hand, Xi is missing a great opportunity in India to display a new self-perception of the group vis-à-vis the leading G20 nations directly after the BRICS summit. grz

BRI debate: Italy and China reaffirm partnership

Amid the debate over Italy’s withdrawal from China’s Belt and Road Initiative (BRI), representatives from both countries have turned towards each other: Italy supports an open dialogue with China on values and principles, Italian Foreign Minister Antonio Tajani said on Monday in the presence of his counterpart Wang Yi, according to the news agency Ansa.

Earlier, both politicians attended a meeting of the Italian-Chinese intergovernmental committee, where the “opening of a new season” for “reinforced cooperation” was announced. According to Tajani, several ministers and Prime Minister Giorgia Meloni will travel to China before the end of the year.

Thanks to the efforts of both sides, relations developed well, Wang Yi agreed, “Cooperation under the New Silk Road has been full of results.” In the past five years, trade exchange between the two countries has reached 80 billion dollars. Wang emphasized that Italian exports to China had increased by 30 percent. Tajani, however, had just criticized over the weekend that Italy’s BRI membership did not yield the desired results.

After a meeting with Chinese Minister of Commerce Wang Wentao, Tajani wrote on X (formerly Twitter): “Bilateral trade is growing and we have over 1,600 Italian companies in China, our top partner in Asia.” He added that Italy wants to export even more. So far, Tajani left open the decision of whether his country would remain in the BRI: “Our participation in the Silk Road will be decided by the parliament,” Tajani told the Italian TV station TG La 7. Whatever the decision, “it will not jeopardize our relations, and in any case, the partnership with China will be strengthened.”

The CCP mouthpiece, Global Times, also practiced appeasement at the start of the week. Italy’s withdrawal would represent “not a fundamental setback” for relations between the two countries, the newspaper summarized several Chinese experts on the matter. Rome has until the end of the year to decide whether to extend a Memorandum of Understanding (MoU) on the New Silk Road.

The withdrawal is considered virtually certain. Meanwhile, former Prime Minister Giuseppe Conte defended the conclusion of the BRI agreement. He said he had no regrets that Italy joined the BRI in 2019 with him in office. ari

  • Neue Seidenstraße

CATL also wants to produce fast-charging batteries in Germany

Chinese battery manufacturer Catl plans to produce its new, fast-charging Shenxing battery in Germany. Chief engineer Gao Pengfei made the announcement on Monday at the International Motor Show (IAA) in Munich. The battery is expected to enter series production in China in late 2023. Gao did not specify a timeframe for production in Europe. No agreements have yet been signed with customers in the region. Another production site in the EU will be Hungary.

According to company information, the new lithium iron phosphate (LFP) battery will allow EVs to travel 400 kilometers on a ten-minute charge. A full charge could even achieve a range of 700 kilometers. The new batteries are also supposed to be cheaper than previous energy storage systems based on nickel and cobalt.

Catl began operations at its plant in Germany in December 2022 and is currently building Europe’s largest battery plant in Debrecen, Hungary. Production is set to start there in two to three years. Catl’s customers include Tesla and Volkswagen. The company generates more than one-third of global EV battery sales. rtr/grz

Energy Agency sees continuing EV boom

The International Energy Agency (IEA) sees China as leading in sales of electrically powered passenger cars. Last year, half of all EVs worldwide were driven in China, and 60 percent of new registrations were made in the People’s Republic. For 2023, the agency expects China’s share of electric mobility to increase further because sales are growing faster there than elsewhere.

One of the reasons: “Electric cars remain much cheaper in China.” The average price is below 10,000 dollars, while it is over 30,000 in the EU and the USA. According to the forecast, EV sales are expected to increase 30 percent in China this year. Last year, however, the increase was 60 percent. The figure refers to battery-electric cars.

The IEA has a positive outlook for Germany. The share of EV sales has increased tenfold since the pandemic. The development in Germany is therefore much better than in Italy or Austria, where sales have hardly progressed at all. Globally, however, sales of electric cars are growing exponentially. fin

  • Autoindustrie
  • Elektromobilität

Banks prop up Russian financial system

China’s ICBC has increased its lending volume to Russian banks since the start of the war.

Chinese banks are using the withdrawal of Western capital from Russia to promote their national currency, the renminbi. The People’s Republic’s four major state-owned institutions have been increasingly available as lenders to Russian banks since the start of the Ukraine war. In the 13 months since the beginning of the invasion, they have more than quadrupled the volume of loans – from 2.2 billion to 9.7 billion US dollars. That was revealed in a study of Russian Central Bank data by Ukraine’s Kyiv School of Economics (KSE) commissioned by the Financial Times.

The bulk of the increased lending is borne by the Industrial and Commercial Bank (ICBC) and the Bank of China, with 8.8 billion dollars. “The loans by Chinese banks to Russian banks and credit institutions, which are for the most part a case of the yuan taking the place of dollars and euros, show the sanctions are doing their job,” said Andrei Onopreyenko of the CFE, who compiled the data. Trade between Russia and China hit a record 185 billion US dollars in 2022.

The largest Western lender to Russian institutions is Austria’s Raiffeisen Bank, which had increased its exposure from 20.5 billion to 29.2 billion US dollars since the outbreak of the war up to and including March. However, recent data indicated that Raiffeisen Bank reduced its exposure again by five billion US dollars. grz

Heads

Martina Boelck: Everything never wanted to know about China

Martina Boelck is a writer involved in the association Studienwerk Deutsches Leben in Ostasien (Studeo).

“China, we have nothing to do with that,” was her first reaction when her husband confronted her with vacancies in the faraway country. And yet, soon after, the two set off for the Far East. Martina Boelck was employed as a lecturer at the Pedagogical University of Beijing between 2003 and 2008 through the German Academic Exchange Service (DAAD).

During this time, while teaching Chinese students the German language and literature, regional studies and scientific writing, she also learned a lot of new things. For example, she wondered why the young adults mostly mentioned “sleeping” as a hobby and also often appeared tired in class.

She later learned that some students spent their nights gaming in video arcades. The enormous grade pressure probably also contributed to the fatigue. But her students did not only allow her extensive insights into Chinese society when it came to sleeping habits: “I could always have them write papers,” she said. For example, on the topics: Having children or not having children? Should you live together before marriage or not? “I could put in anything that interested me as a topic, and then it was discussed, and I could ask all my questions.”

She also had to familiarize herself with the procedures of the bureaucracy or the hierarchies at work. “That’s actually what I found really exciting and interesting. That you learn to take other perspectives, not just theoretically, but you’re always pushed into it.”

Female figures in Sino-Chinese history

After this memorable experience in China, she continued to study the country back in Germany. In 2022, she published her book ” Was sie dachten, niemals über China wissen zu wollen” (“What you thought you would never want to know about China”). In 55 short chapters, she humorously describes everything she learned, experienced and researched.

In recent years, she has been particularly interested in the history of Germans in China. Together with Hilke Veth, she conceived the radio report ” Kaufleute, Missionare, Soldaten – Die Lange Nacht der China-Deutschen” (“Merchants, Missionaries, Soldiers – The long night of the Chinese-Germans”), which was broadcast by Deutschlandfunk.

The two women are working on a new book with a similar focus. We picked out 18 women who wrote about their experiences in China between the Opium Wars and the founding of the People’s Republic. We think what they experienced also reflects Sino-German history.” And Martina Boelck adds, “Our hope is to present these women and show all the exciting approaches to the country of China.”

Her passion for the history of the Germans in China is also explored in her work for Studeo (Studienwerk Deutsches Leben in Ostasien e.V.). Studeo was founded in 1992 by a group of East Asian Germans to preserve knowledge about the work of Germans in East Asia.

Among other things, Studeo collects documents and diaries, so she has access to a vast archive. With all these different works, Martina Boelck gets her money’s worth when it comes to her interests in influential female figures and life stories. Juliane Scholuebbers

Executive Moves

Walter Sun replaces Feiyu Xu at software maker SAP as global head of AI. Sun comes from Microsoft, where he reached prominence as head of the corresponding development division. He worked there for 18 years and, for example, was responsible for integrating AI functions into the Bing search engine. Sun holds a PhD in electrical engineering and has experience with AI applications for enterprise software. He also teaches computer science at Seattle University. He does not have to leave Seattle to work for SAP. Sun is American and studied in Georgia and Massachusetts. Feiyu Xu will focus on her startup, Nyonic.

Is something changing in your organization? Let us know heads@table.media!

Dessert

Chinese coffee chain Luckin Coffee unveiled a much-discussed new product Monday in cooperation with spirits maker Kweichow Moutai: This latte macchiato contains a shot of high-proof millet-wheat liquor – Moutai. The alcohol content is said to be less than 0.5 percent, according to the supplier. Offered for 38 yuan, the drink will be half-price at launch. Kweichow Moutai already launched an alcohol-infused ice cream last year.

China.Table editorial office

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    Recently BRICS, now ASEAN, and next weekend, G20. Everywhere, the People’s Republic works towards a new world order – ideally with considerable Chinese involvement. This is supported by China’s huge economic assets, which the country sells as a win-win situation, especially in its relations with its junior partners.

    Frank Sieren reports that despite considerable territorial disputes in the South China Sea with the ASEAN states, rapprochements are indeed happening. A railway connection here, an agreement there. Economic dependence yields compliance. Let’s see how far Beijing can advance its interests with this strategy without upsetting its partners. India, for one, was quite angered immediately after the BRICS summit by new Chinese maps in school textbooks that label large parts of Indian territory as part of the People’s Republic.

    Perhaps that is why China’s President Xi Jinping is avoiding a cold reception from his neighbor and won’t even travel to the G20 in New Delhi. Or does he want to show the world that this forum is no longer worth a weekend of travel? Who knows? He has been traveling a lot lately, after all. And according to Xi’s perceptions, the G20 is losing importance anyway.

    Not only Chinese politics, but also Chinese technology is changing the world. The German Federal Ministry of the Interior doubts whether this is in line with German security interests. At the very least, it is now also examining stricter specifications for components of Chinese providers in the construction of the access network, as Finn Mayer-Kuckuk writes. So far, the focus has been on the core network.

    Incidentally, China itself already stipulated in the 1990s the development of its own technologies and the avoidance of foreign components in its network construction as far as possible. For reasons of national security. You never know who you’re going to bring into your house.

    Your
    Marcel Grzanna
    Image of Marcel  Grzanna

    Feature

    Li Qiang courts Southeast Asia

    The venue of the ASEAN summit on Monday at the foreign ministers’ meeting. The heads of government will arrive on Tuesday.

    In the run-up to the ASEAN summit, it becomes clear how torn the Southeast Asian states are about China. On the one hand, they want to cooperate ever more closely with China for economic reasons, but on the other hand, they are unwilling to let their differences with Beijing slide.

    This applies above all to the conflicts in the South China Sea. China is increasingly expanding in this region at the expense of its neighbors by occupying and building on atolls that are also claimed by several other countries.

    ASEAN, an association of Southeast Asian nations, was founded in 1967 and held its first summit in 1976 in Indonesia. On Bali, to be precise. Today, its members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

    China as the largest trading partner

    Indonesia is currently also the chair of the group and thus hosts the summit, which will start on Tuesday. With a share of around three percent, all countries combined have the same economic importance as Japan alone. China, on the other hand, has a share of 18 percent, adjusted for purchasing power.

    China is the largest trading partner of all ten countries and the largest single donor of development assistance to the region. Since 2015, it has provided around 5.5 billion US dollars in real terms. That is why Singapore’s Prime Minister Lee Hsien Loong also acknowledges that ASEAN economically depends on China.

    Successful growth region

    Asean covers Asia’s major developing countries. Economists estimate that the group will grow by over five percent this year. This means that growth is at least as high, but possibly higher, than China’s. Cooperation between ASEAN and China focuses on large infrastructure projects:

    • A high-speed railway line was built in Laos.
    • The East Coast Raillink (ECRL) is a 660-kilometer infrastructure project for a two-track dedicated rail link in Malaysia.
    • This year, an approximately 142-kilometer high-speed line from Bandung to Jakarta in Indonesia was completed.
    • The Chinese have also been building a large port in Malacca (Malaysia) for the past two years. Once finished, the port is expected to help relieve the pressure on the port in Singapore.

    As far as such infrastructure measures are concerned, China is by far the most important player in the ASEAN countries.

    Beijing funds infrastructure

    In foreign policy terms, ASEAN predominantly shares the concept of balancing the influence of the USA and China in the region, thus playing the superpowers against each other. A good example of this balancing act is the policy of the Philippines under the new President, Ferdinand Marcos Jr. In May 2022, he won the presidential election and subsequently readjusted the Philippines’ Sino-American relations.

    Marcos has intensified the economic relationship with China, while reviving a military agreement with the United States amid tensions over a reef called “Ren’ai” for China, the Ayungin Shoal for the Philippines, and the Second Thomas Shoal internationally.

    The Philippines generally allows the US military to again use more naval bases. Part of the reason is the heightened tensions. As recently as 5 August, a Chinese coast guard boat blocked a Philippine navy vessel in the Spratly Islands area and fired a water cannon at it, forcing the Philippine vessel to turn around.

    Three ASEAN Summits

    The fact that there will be three ASEAN summits shows how challenging this balancing process is:

    • First, the China-Asean summit from September 5 to 8,
    • then the ASEAN+3 Summit with China, Japan and South Korea,
    • as well as the actual ASEAN summit in Jakarta.

    US President Joe Biden will travel to the G20 summit in Delhi, which will be held shortly afterward, and Vice President Kamala Harris to the ASEAN summit. Chinese Premier Li Qiang, on the other hand, will attend all three summits.

    Li accuses Biden of manipulating ASEAN

    In addition, Premier Li will meet President Joko Widodo in Indonesia. Indonesia is one of the most important countries in the group. Southeast Asia’s largest and most populous economy continues to maintain close ties with Beijing despite all sorts of ongoing tensions in the South China Sea. Li’s four-day trip is his first official visit to an ASEAN member country since taking office in March.

    Beijing’s interest is clear: The Chinese government is primarily committed to ensuring that the problems of the ASEAN countries are settled mainly between Asian countries and not, for example, with the help of the Americans or other Western countries.

    On the other hand, the ASEAN countries are quite open to balancing the unequal power distribution with the help of the USA and creating a counterweight to China. This does not go down well with Beijing. Without explicitly naming the United States, Foreign Minister Wang Yi accused “external forces” of “manipulating ASEAN.”

    Slowing down China with the help of the USA

    In turn, the involvement of the Americans, in particular, guarantees the ASEAN countries that the Chinese will not cross the line. However, they are not hellbent on siding with either side but, above all, on having a choice. Depending on the issue, they want to work with both the US and China.

    This summit will also determine the position of ASEAN at the subsequent G20 summit in New Delhi. Indonesia will represent them at the G20.

    Huawei: Germany considers even stricter requirements

    Cellular towers could now also become part of the rip-and-replace strategy.

    The German Federal Ministry of the Interior (BMI) has once again raised critical questions about Chinese network equipment with German telecommunications providers. They are now expected to provide information on the access network, i.e., the actual antennas, within a week. Minister Nancy Faeser is thus again following up on a survey from last spring. The BMI confirmed this to Table.Media. The German newspaper Die Welt first reported on the matter.

    The Ministry has already received the responses to the March survey. Apparently, its staff are now going into detail where they suspect particular vulnerabilities. There are indications that the use of the Chinese components could “impair the public order or security of the Federal Republic.” For providers Telekom, Vodafone and Telefónica, however, this process entails considerable work.

    More European parts

    The BMI, in turn, is thus implementing the government’s cyber security strategy, among other things. It stipulates that no suppliers who are under the influence of a rival power are to be allowed in critical infrastructure. However, all Chinese companies are obliged to cooperate with government agencies.

    There is no concrete evidence of acute security risks posed by the numerous Huawei components used in Germany’s wireless and data networks. But in the government’s view, the rethinking since Russia’s attack on Ukraine demands the examination of such scenarios and the precise assessment of the risks. The German government intends to complete the review in the coming weeks.

    At the same time, the German public favors more European autonomy in network technology. China, for its part, already imposed severe restrictions on foreign technologies within the People’s Republic in the 1990s in order to minimize security risks.

    Core network and access network

    The current debate now also explicitly includes the access network, after revolving mainly around the core network.

    • The radio access network (RAN) consists primarily of the actual antennas that make contact with mobile phones and send digital data back and forth through the air.
    • The core network connects customers nationwide in the background. It operates much closer to the handling of client data. Its breakdown at a central location would shut down many connections.

    As a large Huawei customer, Telekom attempted to appease the German authorities by removing the Chinese parts from the core network, but wanted to keep them in the access network.

    So the BMI’s latest move marks a clear step up in the pressure on the three telecommunications providers. The more Huawei parts they get to keep, the more money they save – and the sooner they can focus on further expanding Germany’s slow networks.

    Because long-term contracts with Huawei are still valid, Telekom continues to install equipment from the Chinese global market leader even today. On the other hand, the BMI has made it clear that it will insist on removing the Huawei parts if the audit finds credible evidence of risks.

    China strategy and China components

    However, Minister Faeser has little choice but to take a very close look at the networks. The protection of critical infrastructure is also firmly anchored in Germany’s China strategy published this July. While the government is planning a dedicated critical infrastructure law, it references existing 5G rules in the China strategy.

    What is clear is that no foreign state can be allowed to sabotage data transmission in Germany by simple means. In April, Politico reported that an energy management function in particular had the Interior Ministry worried. The rumors in Berlin are that China could use it to shut down parts of the network via remote maintenance.

    ‘Shockingly short deadline’

    Faeser is now putting her foot down regarding the implementation of the strategies to reduce provider risks. As Die Welt reports from Germany’s telecommunications provider circles, experts said the deadline for answering the new detailed questions was shockingly short.

    In the first round, providers had provided a comprehensive list of all Chinese parts. Now, the BMI is responding with lists of detailed questions. According to the Welt report, this can hardly be done in five working days. Collaboration: Franziska Klemenz, Corinna Visser

    Translation missing.

    News

    Xi Jinping skips G20

    China’s President Xi Jinping will not travel to the G20 summit in India next weekend. Instead, Premier Li Qiang will represent the interests of his country as the highest representative of the People’s Republic. This was confirmed by the Chinese Foreign Ministry on Monday, without giving a reason for Xi’s absence. It is the first time since taking office that Xi has decided not to attend the G20.

    Xi’s cancellation comes a few days after China’s Minister of Commerce Wang Wentao stood in for him at an important speech at last week’s BRICS Summit in South Africa. Whether Xi will not attend the G20 meeting for reasons of health, strategy or domestic politics is still unclear.

    It is also unclear whether India’s head of state Modi sees Xi’s absence as an insult. Within the BRICS alliance, Modi’s democratically elected government pursues different interests than China in many areas. Both countries have quarreled over large territories in shared border regions for years.

    It will also be interesting to see how other BRICS countries such as Brazil, South Africa or the future members Argentina and Saudi Arabia will perceive Xi’s absence. They may see Xi’s absence as a sign of disrespect for the G20 and a signal for a departure into a multipolar world order. On the other hand, Xi is missing a great opportunity in India to display a new self-perception of the group vis-à-vis the leading G20 nations directly after the BRICS summit. grz

    BRI debate: Italy and China reaffirm partnership

    Amid the debate over Italy’s withdrawal from China’s Belt and Road Initiative (BRI), representatives from both countries have turned towards each other: Italy supports an open dialogue with China on values and principles, Italian Foreign Minister Antonio Tajani said on Monday in the presence of his counterpart Wang Yi, according to the news agency Ansa.

    Earlier, both politicians attended a meeting of the Italian-Chinese intergovernmental committee, where the “opening of a new season” for “reinforced cooperation” was announced. According to Tajani, several ministers and Prime Minister Giorgia Meloni will travel to China before the end of the year.

    Thanks to the efforts of both sides, relations developed well, Wang Yi agreed, “Cooperation under the New Silk Road has been full of results.” In the past five years, trade exchange between the two countries has reached 80 billion dollars. Wang emphasized that Italian exports to China had increased by 30 percent. Tajani, however, had just criticized over the weekend that Italy’s BRI membership did not yield the desired results.

    After a meeting with Chinese Minister of Commerce Wang Wentao, Tajani wrote on X (formerly Twitter): “Bilateral trade is growing and we have over 1,600 Italian companies in China, our top partner in Asia.” He added that Italy wants to export even more. So far, Tajani left open the decision of whether his country would remain in the BRI: “Our participation in the Silk Road will be decided by the parliament,” Tajani told the Italian TV station TG La 7. Whatever the decision, “it will not jeopardize our relations, and in any case, the partnership with China will be strengthened.”

    The CCP mouthpiece, Global Times, also practiced appeasement at the start of the week. Italy’s withdrawal would represent “not a fundamental setback” for relations between the two countries, the newspaper summarized several Chinese experts on the matter. Rome has until the end of the year to decide whether to extend a Memorandum of Understanding (MoU) on the New Silk Road.

    The withdrawal is considered virtually certain. Meanwhile, former Prime Minister Giuseppe Conte defended the conclusion of the BRI agreement. He said he had no regrets that Italy joined the BRI in 2019 with him in office. ari

    • Neue Seidenstraße

    CATL also wants to produce fast-charging batteries in Germany

    Chinese battery manufacturer Catl plans to produce its new, fast-charging Shenxing battery in Germany. Chief engineer Gao Pengfei made the announcement on Monday at the International Motor Show (IAA) in Munich. The battery is expected to enter series production in China in late 2023. Gao did not specify a timeframe for production in Europe. No agreements have yet been signed with customers in the region. Another production site in the EU will be Hungary.

    According to company information, the new lithium iron phosphate (LFP) battery will allow EVs to travel 400 kilometers on a ten-minute charge. A full charge could even achieve a range of 700 kilometers. The new batteries are also supposed to be cheaper than previous energy storage systems based on nickel and cobalt.

    Catl began operations at its plant in Germany in December 2022 and is currently building Europe’s largest battery plant in Debrecen, Hungary. Production is set to start there in two to three years. Catl’s customers include Tesla and Volkswagen. The company generates more than one-third of global EV battery sales. rtr/grz

    Energy Agency sees continuing EV boom

    The International Energy Agency (IEA) sees China as leading in sales of electrically powered passenger cars. Last year, half of all EVs worldwide were driven in China, and 60 percent of new registrations were made in the People’s Republic. For 2023, the agency expects China’s share of electric mobility to increase further because sales are growing faster there than elsewhere.

    One of the reasons: “Electric cars remain much cheaper in China.” The average price is below 10,000 dollars, while it is over 30,000 in the EU and the USA. According to the forecast, EV sales are expected to increase 30 percent in China this year. Last year, however, the increase was 60 percent. The figure refers to battery-electric cars.

    The IEA has a positive outlook for Germany. The share of EV sales has increased tenfold since the pandemic. The development in Germany is therefore much better than in Italy or Austria, where sales have hardly progressed at all. Globally, however, sales of electric cars are growing exponentially. fin

    • Autoindustrie
    • Elektromobilität

    Banks prop up Russian financial system

    China’s ICBC has increased its lending volume to Russian banks since the start of the war.

    Chinese banks are using the withdrawal of Western capital from Russia to promote their national currency, the renminbi. The People’s Republic’s four major state-owned institutions have been increasingly available as lenders to Russian banks since the start of the Ukraine war. In the 13 months since the beginning of the invasion, they have more than quadrupled the volume of loans – from 2.2 billion to 9.7 billion US dollars. That was revealed in a study of Russian Central Bank data by Ukraine’s Kyiv School of Economics (KSE) commissioned by the Financial Times.

    The bulk of the increased lending is borne by the Industrial and Commercial Bank (ICBC) and the Bank of China, with 8.8 billion dollars. “The loans by Chinese banks to Russian banks and credit institutions, which are for the most part a case of the yuan taking the place of dollars and euros, show the sanctions are doing their job,” said Andrei Onopreyenko of the CFE, who compiled the data. Trade between Russia and China hit a record 185 billion US dollars in 2022.

    The largest Western lender to Russian institutions is Austria’s Raiffeisen Bank, which had increased its exposure from 20.5 billion to 29.2 billion US dollars since the outbreak of the war up to and including March. However, recent data indicated that Raiffeisen Bank reduced its exposure again by five billion US dollars. grz

    Heads

    Martina Boelck: Everything never wanted to know about China

    Martina Boelck is a writer involved in the association Studienwerk Deutsches Leben in Ostasien (Studeo).

    “China, we have nothing to do with that,” was her first reaction when her husband confronted her with vacancies in the faraway country. And yet, soon after, the two set off for the Far East. Martina Boelck was employed as a lecturer at the Pedagogical University of Beijing between 2003 and 2008 through the German Academic Exchange Service (DAAD).

    During this time, while teaching Chinese students the German language and literature, regional studies and scientific writing, she also learned a lot of new things. For example, she wondered why the young adults mostly mentioned “sleeping” as a hobby and also often appeared tired in class.

    She later learned that some students spent their nights gaming in video arcades. The enormous grade pressure probably also contributed to the fatigue. But her students did not only allow her extensive insights into Chinese society when it came to sleeping habits: “I could always have them write papers,” she said. For example, on the topics: Having children or not having children? Should you live together before marriage or not? “I could put in anything that interested me as a topic, and then it was discussed, and I could ask all my questions.”

    She also had to familiarize herself with the procedures of the bureaucracy or the hierarchies at work. “That’s actually what I found really exciting and interesting. That you learn to take other perspectives, not just theoretically, but you’re always pushed into it.”

    Female figures in Sino-Chinese history

    After this memorable experience in China, she continued to study the country back in Germany. In 2022, she published her book ” Was sie dachten, niemals über China wissen zu wollen” (“What you thought you would never want to know about China”). In 55 short chapters, she humorously describes everything she learned, experienced and researched.

    In recent years, she has been particularly interested in the history of Germans in China. Together with Hilke Veth, she conceived the radio report ” Kaufleute, Missionare, Soldaten – Die Lange Nacht der China-Deutschen” (“Merchants, Missionaries, Soldiers – The long night of the Chinese-Germans”), which was broadcast by Deutschlandfunk.

    The two women are working on a new book with a similar focus. We picked out 18 women who wrote about their experiences in China between the Opium Wars and the founding of the People’s Republic. We think what they experienced also reflects Sino-German history.” And Martina Boelck adds, “Our hope is to present these women and show all the exciting approaches to the country of China.”

    Her passion for the history of the Germans in China is also explored in her work for Studeo (Studienwerk Deutsches Leben in Ostasien e.V.). Studeo was founded in 1992 by a group of East Asian Germans to preserve knowledge about the work of Germans in East Asia.

    Among other things, Studeo collects documents and diaries, so she has access to a vast archive. With all these different works, Martina Boelck gets her money’s worth when it comes to her interests in influential female figures and life stories. Juliane Scholuebbers

    Executive Moves

    Walter Sun replaces Feiyu Xu at software maker SAP as global head of AI. Sun comes from Microsoft, where he reached prominence as head of the corresponding development division. He worked there for 18 years and, for example, was responsible for integrating AI functions into the Bing search engine. Sun holds a PhD in electrical engineering and has experience with AI applications for enterprise software. He also teaches computer science at Seattle University. He does not have to leave Seattle to work for SAP. Sun is American and studied in Georgia and Massachusetts. Feiyu Xu will focus on her startup, Nyonic.

    Is something changing in your organization? Let us know heads@table.media!

    Dessert

    Chinese coffee chain Luckin Coffee unveiled a much-discussed new product Monday in cooperation with spirits maker Kweichow Moutai: This latte macchiato contains a shot of high-proof millet-wheat liquor – Moutai. The alcohol content is said to be less than 0.5 percent, according to the supplier. Offered for 38 yuan, the drink will be half-price at launch. Kweichow Moutai already launched an alcohol-infused ice cream last year.

    China.Table editorial office

    CHINA.TABLE EDITORIAL OFFICE

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