In the last weeks of the old year, there was repeated talk of Beijing’s charm offensive aimed at the West. After all, Xi Jinping had struck a softer tone at the G20 summit in Bali. But Beijing’s new foreign policy figurehead probably came as a shock to optimists: Qin Gang will become the new foreign minister. The wolf warrior is not particularly known for diplomatic tones.
On Twitter, Qin has already bid farewell to the US, where he has served as ambassador since July 2021. Among other things, he thanked the American people for their friendly interactions. On his final meters as ambassador, Qin also published a text that gives insight into his – and Beijing’s – view of the world. Michael Radunski took a closer look at this piece and read between Qin’s lines.
The diplomatic year between Brussels and Beijing starts off with discord: The EU Commission’s crisis team has spoken out in favor of mandatory Covid testing in all member states for travelers before departure from China. Whether these will be introduced is now up to the individual EU member states. However, the Chinese Foreign Ministry already hinted that the move could be met with retaliatory measures. After three years of the most absurd quarantine regulations, mandatory testing, arbitrariness and control apps upon entry into China, it is difficult to take Beijing’s criticism seriously.
In addition to handling the Covid pandemic, 2023 holds other potential conflicts between the EU and China – but perhaps also a reconciliation on CAI? We present an overview of upcoming topics in the first half of the year.
Your Amelie Richter
Feature
Qin Gang – How China’s new foreign minister sees the world
Just before leaving Washington, Qin Gang 秦刚 wrote one last essay. The title: How China Sees the World. It is no parting gift from the Chinese ambassador to the United States, but rather an announcement. Because Qin Gang has since risen to become China’s new foreign minister (China.Table reported). And so it is worth taking a closer look at the essay. Because between the pretty words it is possible to see how China sees the current international conflicts.
At first glance, Qin’s essay published in the US magazine “The National Interest” seems like the masterpiece of a career diplomat. He praises China’s rise as an asset for global peace and advocates more cooperation between all nations for the benefit of humanity. Time and again, readers are treated to the terminology used by China’s leaders around President Xi Jinping: From win-win situations to mutual respect to pretty phrases such as “a community with a shared future for mankind.”
Qin names the crises of the world
But 56-year-old Qin is an experienced party cadre. He knows that pretty words are not enough, so China’s new foreign minister does not avoid any current crises. It is precisely here where it is not only worth taking a closer look at Qin’s words but above all his thoughts between the lines.
The essay states:
“The tension across the Taiwan Strait was not created by the Chinese mainland breaking the status quo, but by ‘Taiwan independence’ separatists and external forces continually challenging the status quo of ‘one China’.”
Here, the different interpretations of “One-China” reveal themselves: For Beijing, it means that Taiwan belongs to the People’s Republic. For the USA and the West, on the other hand, “One-China” means that Beijing represents China, but that Taiwan can still choose its own path.
Furthermore, Qin writes:
In the case of the East China Sea, “it was Japan who attempted to ‘nationalize’ Diaoyu Dao ten years ago”, changing the status quo between China and Japan.
In the South China Sea, “the status quo is that regional countries are consulting on a code of conduct, “that will lead to meaningful and effective rules for the region.”
Regarding the border issues between China and India, “the status quo is that both sides are willing to ease the situation” and work together to protect the peace.
Regarding the Japan/East China Sea, Qin is indeed correct: It was Japan that unilaterally changed the status quo of the Diaoyu Islands ten years ago. However, this conflict is closely tied to the tensions in the South China Sea. And what Beijing has built here in recent years in the form of artificial islands, military facilities, and runways dwarfs anything previously seen.
Not to mention Beijing’s blatant rejection of a ruling by the Permanent Court of Arbitration in The Hague on China’s unjustified claims in the South China Sea. Rather, precisely such a ruling would be the objective basis for more far-reaching rules.
China sees itself surrounded
Basically, a clear division of roles emerges in each of these points: China considers itself a thoroughly peaceful country that harbors no hegemonic tendencies, quite unlike almost all other countries.
These are familiar words from Qin Gang. Even as a spokesman for the Chinese Foreign Ministry, he earned a reputation as a “wolf warrior“. This is the name given to members of a generation of Chinese diplomats who at times even aggressively defend the People’s Republic. Qin himself called such behavior a necessary response to baseless slander and unfounded attacks against China (China.Table reported). “It is impertinent to insult China while trying to prevent it from fighting back,” Qin said once.
The former Wolf Warrior presents himself as close to the people in Washington during a basketball game.
Qin also has a similar perspective on a conflict that China seems all too happy to look at decidedly uninvolved and from a safe distance: the war in Ukraine. Here, Qin remains true to Beijing’s line and calls the situation in Ukraine “deeply saddening”. In his view, it is now important to work for peace talks between Russia and Ukraine.
China will not abandon Russia
When Qin then discusses the causes of the war, it becomes clear how ideologically close Beijing and Moscow are in geopolitics. “People must realize that grounding one’s own security on other countries’ insecurity won’t work.” This is the very narrative Russia has been using, namely that the United States, NATO, and the West have cornered Russia to the point where Putin was forced to attack Ukraine in self-defense. So China will stay at Russia’s side, even under its new foreign minister.
Nevertheless, many observers hope that Qin will use his experience in America as the new foreign minister to ease the tensions between the two superpowers.
It indeed seems as if Qin has changed outwardly from a gruff wolf warrior to a polite diplomat. He even allowed himself to shoot some hoops at a basketball game to show his closeness to the people. It’s not what you say but the way you say it. But Xi Jinping still writes the words.
Anyone entering the EU from China as of Sunday will have to present a negative Covid test in some member states, even before boarding the plane. This applies to France and Italy, for example. Germany has not yet announced any mandatory testing for passengers from the People’s Republic. After a Wednesday meeting of the EU crisis response team (IPCR) in Brussels regarding the Covid situation, a report was released stating that EU member states are “strongly encouraged” to introduce mandatory pre-boarding Covid testing for all travelers.
A majority of EU states have spoken out in favor of a uniform mandatory testing requirement, an EU Commission spokesman said on Wednesday afternoon before the IPCR meeting. The Chinese Foreign Ministry already announced retaliatory measures should the EU introduce mandatory testing. Whether it will be introduced is now up to the individual EU states. The crisis team also recommended random testing of arriving travelers and wearing FFP2 masks on flights from the People’s Republic.
Much depends on what impact China’s opening up will have on the EU in the coming weeks. If travel resumes smoothly, then EU-China relations will also begin to improve in 2023. However, it is not yet clear what impact China’s rapid change, of course, will have in practice.
Movement at WTO, BRI – and maybe even the CAI
However, several important outstanding developments and issues, both new and old, will impact the relationship between Brussels and Beijing. An overview:
Change of direction: The Czech Republic will elect a new president in January. Incumbent Miloš Zeman is considered close to China and is not up for re-election. Consequently, there will almost certainly be an even stronger departure from Beijing in Prague than previously (China.Table reported). A withdrawal from the 14+1 cooperation format between Eastern and Central European states and China is not ruled out. There are several candidates to succeed Zeman. One of them: ex-Prime Minister Andrej Babiš, who is rather skeptical of Beijing.
Italy’s decision on the Belt and Road Initiative (BRI) will also be interesting in 2023. The right-wing populist Prime Minister Giorgia Meloni previously indicated that she would not renew the BRI memorandum. Brussels and other EU capitals are also looking closely at Berlin and its new China strategy from the Green Foreign Ministry.
New trade policy tools: Before the summer recess, the European Parliament wants to finalize its positions on the EU Supply Chain Act and the import ban on products made under forced labor, explains the chairman of the Trade Committee, Bernd Lange (SPD), in an interview with China.Table. “There will certainly be some points of conflict with China here.” In both areas, however, the EU Parliament now wants to make quick progress, according to Lange. The new Anti-Coercion Instrument is also expected to be finalized in the near future. At the end of January, negotiations on this will again take place between the EU institutions under the chairmanship of the Swedish EU Council Presidency. “Perhaps this will already be the last trilogue,” Lange says confidently. The European Commission is also considering taking a closer look at investments by European companies in China. In its 2023 work program, the Brussels-based authority announced plans to examine whether additional instruments are needed regarding the supervision of strategic foreign investments.
Renaissance of CAI? Lange does not rule out a revival of the shelved investment agreement between the EU and China. One prerequisite, however, would still be the lifting of sanctions against EU delegates. Last year, the leadership in Beijing signaled its willingness to sign the International Labor Organization (ILO) conventions against forced labor – something the European Parliament demands for further negotiations. “Now we have to enter into a dialogue to see what that means in concrete terms,” Lange stressed. Beijing previously only wanted to lift sanctions on MEPs if the EU lifts its sanctions against Chinese officials and an organization for human rights abuses in Xinjiang. However, the sanctions were renewed in December.
Russia’s war and Beijing’s position: The Russian invasion of Ukraine and China’s silent support will continue to shape relations between Brussels and Beijing in 2023. In the near future, French President Emmanuel Macron plans to travel to China. Macron had expressed his support for China as a possible mediator between Russia and the West after the G20 summit in Bali. The French leader earned scorn for this suggestion. According to media reports, US Secretary of State Antony Blinken will travel to Beijing before the end of January. A resumption of diplomatic meetings with Chinese representatives has given rise to hopes in Brussels that Beijing might yet distance itself from Moscow. However, the latest developments point in a different direction.
Geopolitical infrastructure: Touted as a sustainable alternative to China’s Belt and Road Initiative (BRI), the EU wants to breathe life into its Global Gateway project this year. The first official meeting between EU leaders and EU foreign ministers was held recently. But there are still no concrete projects. In the near future, however, the EU-wide invitation to tender for an advisory body consisting of entrepreneurs and CEOs is to commence, according to sources in the responsible Directorate General. The panel is said to be an important step toward more effectively involving the private sector. A summit meeting between EU and Latin American representatives will also be held in the first half of the year. Latin America will be a focus of Global Gateway.
WTO complaints: WTO disputes: Direct confrontation is on the horizon in late January, when two arbitration tribunals will be opened at the World Trade Organization (WTO) to deal with claims brought by the EU against China. The WTO proceedings concern the de facto trade embargo against Lithuania and patent protection of high-tech products. China opposed the creation of these arbitration tribunals. However, it can only vote them once. The EU announced to resubmit the request. The panel will then be set up automatically at the end of January 2023 and may drag on for up to a year and a half.
Taiwan and Indo-Pacific: The Swedish Council Presidency intends to further advance the EU’s strategy for cooperation in the Indo-Pacific, according to the Swedish program. Shortly before the end of the year, a first summit meeting was held between the EU and ASEAN, where both sides agreed on closer economic cooperation. In the penultimate week of December, an EU delegation from the Trade Committee also visited Taiwan. Further delegation trips to the island are also scheduled for 2023.
Coronavirus
Covid-19
Czech Republic
EU
Health
ILO
News
Germany warns of new supply bottlenecks
Due to the Covid wave in China, the Federal Ministry for Economic Affairs and Climate Action repeated its warning about supply chain problems for German companies. “Confidence in Chinese supplies has already been subjected to a drastic reality check in the wake of the pandemic,” a ministry spokesman told the Mediengruppe Bayern newspapers on Wednesday. Now supply chains could once again be disrupted. Experts do not expect German companies to suffer major production slumps, but supply bottlenecks could nevertheless become an additional burden alongside inflation and recession.
Timm Boenke of the German Institute for Economic Research (DIW) sees things differently. The lifting of Covid restrictions in China is currently helping to ease supply chains, Boenke told the AFP news agency. At the same time, however, there are now production problems due to many sick employees. In principle, China’s economy is recovering – but this poses an economic risk for Germany and Europe, Boenke said. The recovery could “lead to higher prices on commodity and energy markets and fuel inflation,” Boenke said. lik
Economic Situation
Economy
Supply chains
Trade
Beijing loosens coal ban for Australia
China has eased its unofficial ban on imports of Australian coal. Three major power utilities and a state-owned steelmaker received permission from Beijing’s leadership to import coal from Australia, Reuters reported, citing several people familiar with the matter. The National Development and Reform Commission (NDRC) reportedly already informed power suppliers Datang, Huaneng Group and Energy Investment Corporation, as well as steelmaker Baowu Steel, in a citation on Tuesday. The companies will be allowed to resume importing Australian coal for their own use.
In 2020, after cutting diplomatic ties with Canberra, Beijing declared that Australian coal did not meet the People’s Republic’s environmental standards and had thus issued an unofficial ban on imports. Australian wine and wheat also ended up on the ban list. The latest change now comes after a visit to Beijing by Australian Foreign Minister Penny Wong(China.Table reported). ari/rtr
Australia
Raw materials
Trade
End of the year run ensures recovery of the car market
Only thanks to the second half of the year and a run by consumers, the Chinese car market has slightly improved in 2022 compared to the previous year. According to preliminary figures, sales of passenger cars in the People’s Republic rose by 1.8 percent to 20.7 million cars, the industry association PCA announced on Wednesday. In 2021, sales had also increased slightly, but in previous years the figures had declined.
The end of zero-Covid with its repeated extremely hard lockdowns at the beginning of December contributed significantly to the recovery. In December, deliveries to end customers increased by 15 percent year-on-year to 2.43 million cars. That was also almost half more than in the previous month.
In November, the Covid lockdowns in many cities and regions were still weighing on sales and kept many people from buying a car. Sales also picked up at the end of the year because certain subsidies for more environmentally friendly cars were abolished in the new year. flee
Autoindustrie
WTA: Return depends on Peng Shuai case
The Women’s Tennis Association (WTA) still refuses to hold any women’s tournaments in China until the Peng Shuai case is satisfactorily resolved. “As we would do with any of our players globally, we have called for a formal investigation into the allegations by the appropriate authorities,” read a WTA statement obtained by Reuters.
While the WTA received proof that the 36-year-old was safe, a private meeting has not yet taken place. “We continue to hold firm on our position and our thoughts remain with Peng,” the statement added.
In November 2021, Peng Shuai accused a high-ranking party cadre of sexual abuse on the social network Weibo. However, the post was deleted, and the censorship authority also blocked any further postings about it on the Chinese internet. As a result, the WTA suspended all tournaments in China, including the season finale of the WTA in Shenzhen with the eight best players of the season. flee
Peng Shuai
Sports
WTA
Ant IPO plans get in motion
Alibaba’s financial division was released from the clutches of China’s regulators. A key subsidiary of Ant Group received the long-hoped-for approval for a capital increase at the end of the year. That gives investors new hope that Ant’s IPO will get another chance. The government halted the planned IPO in November 2020 and has since imposed increasingly strict regulations on Ant.
As the largest Chinese e-commerce group, Alibaba is the owner of Ant Group, a financial subsidiary with a huge customer base. But this is precisely why the constellation became too powerful in the eyes of the leadership in Beijing. Ant kept offering new digital financial products and collected data on a large part of the Chinese population, without banking rules applying to the tech company. Investors consider an Ant share, if the IPO happens, still an attractive investment. fin
Ant Group
Finance
Tech Crackdown
Technology
Heads
Omar Ramon Serrano Oswald – the Social Credit System under the microscope
Omar Ramon Serrano Oswald is a professor of International Management at the Business School of the Bern University of Applied Sciences.
Oman Ramon Serrano Oswald has already lived on many continents: As a child of Mexican-Swiss parents, he grew up in both Mexico and Germany and had to find his way in both worlds early on. While studying International Relations, he spent time in China, India, Brazil and Mexico. Today, he is a professor of International Management at the Business School of the Bern University of Appliresearchesucts research on North-South relations.
Among other things, his research focused on the ability of various emerging economies to assert their interests on the global stage and influence international institutions in their interests – in other words, how “policy takers” become “policymakers”. “In this regard, China stood out for its strong organizational structures and innovative companies, especially when it comes to setting norms and standards,” Serrano explains. Meanwhile, countries like India and Brazil are taking a cue from China’s success.
Research focus Social Credit System
As part of his recently completed postdoctoral position at the Technical University of Munich, Serrano then looked into the Chinese Social Credit System (SCS) and its impact on German companies in China. According to Serrano, many companies, both throughout Germany and Europe, often still know too little about this system. In his opinion, they need to become more actively involved with the System, which is currently expanded.
Although no German company was placed on the SCS “blacklist,” several administrative penalties have already been issued. On the other hand, the system also brings advantages. Some companies are already using it, for example, for their search for suppliers or new employees, which can be checked in advance via the freely accessible SCS platforms.
Local differences remain great
In general, however, one should not lose sight of China’s great heterogeneity, says Serrano. According to his research findings, even the SCS is implemented differently in the various provinces. Shanghai, for example, pays particular attention to environmental standards, while Jiangsu focuses primarily on labor issues.
There are indeed stronger tendencies toward centralization under Xi Jinping. But this does not mean that local differences are not nevertheless often enormous and should definitely be taken into account when dealing with China. Clemens Ruben
Research
Science
Society
Executive Moves
Jia Guide will serve as the new Chinese ambassador to Italy. He most recently served in Beijing as head of the Legal Department at the Foreign Affairs Office. Jia is an experienced diplomat. As ambassador to Peru, he was responsible for the country’s accession to the Belt and Road Initiative.
Isaac B. Kardon is the new Senior Fellow for China Studies at the Carnegie Endowment for International Peace think tank. Kardon was previously an assistant professor at the United States Naval War College, among other positions.
Anni Chen has been the new Associate Digital Marketing Manager at pharmaceutical manufacturer MSD China in Shanghai since December. Chen previously served as Senior Multi-Channel Marketing Specialist at Takeda Oncology.
Is something changing in your organization? Why not let us know heads@table.media!
Dessert
It’s hard to imagine most German cities without Chinese restaurants, like this one in Berlin-Kreuzberg. Now, this culinary institution has turned 100 years old. In 1923, the first Chinese restaurant opened in Berlin at Kantstraße 130b. At least according to the German Federal Agency for Civic Education. It was said to be run by the former cook of a delegation and was called “Tientsin”. In the 1920s, a restaurant serving non-European cuisine was still considered exotic and was therefore very popular among bohemians.
In the last weeks of the old year, there was repeated talk of Beijing’s charm offensive aimed at the West. After all, Xi Jinping had struck a softer tone at the G20 summit in Bali. But Beijing’s new foreign policy figurehead probably came as a shock to optimists: Qin Gang will become the new foreign minister. The wolf warrior is not particularly known for diplomatic tones.
On Twitter, Qin has already bid farewell to the US, where he has served as ambassador since July 2021. Among other things, he thanked the American people for their friendly interactions. On his final meters as ambassador, Qin also published a text that gives insight into his – and Beijing’s – view of the world. Michael Radunski took a closer look at this piece and read between Qin’s lines.
The diplomatic year between Brussels and Beijing starts off with discord: The EU Commission’s crisis team has spoken out in favor of mandatory Covid testing in all member states for travelers before departure from China. Whether these will be introduced is now up to the individual EU member states. However, the Chinese Foreign Ministry already hinted that the move could be met with retaliatory measures. After three years of the most absurd quarantine regulations, mandatory testing, arbitrariness and control apps upon entry into China, it is difficult to take Beijing’s criticism seriously.
In addition to handling the Covid pandemic, 2023 holds other potential conflicts between the EU and China – but perhaps also a reconciliation on CAI? We present an overview of upcoming topics in the first half of the year.
Your Amelie Richter
Feature
Qin Gang – How China’s new foreign minister sees the world
Just before leaving Washington, Qin Gang 秦刚 wrote one last essay. The title: How China Sees the World. It is no parting gift from the Chinese ambassador to the United States, but rather an announcement. Because Qin Gang has since risen to become China’s new foreign minister (China.Table reported). And so it is worth taking a closer look at the essay. Because between the pretty words it is possible to see how China sees the current international conflicts.
At first glance, Qin’s essay published in the US magazine “The National Interest” seems like the masterpiece of a career diplomat. He praises China’s rise as an asset for global peace and advocates more cooperation between all nations for the benefit of humanity. Time and again, readers are treated to the terminology used by China’s leaders around President Xi Jinping: From win-win situations to mutual respect to pretty phrases such as “a community with a shared future for mankind.”
Qin names the crises of the world
But 56-year-old Qin is an experienced party cadre. He knows that pretty words are not enough, so China’s new foreign minister does not avoid any current crises. It is precisely here where it is not only worth taking a closer look at Qin’s words but above all his thoughts between the lines.
The essay states:
“The tension across the Taiwan Strait was not created by the Chinese mainland breaking the status quo, but by ‘Taiwan independence’ separatists and external forces continually challenging the status quo of ‘one China’.”
Here, the different interpretations of “One-China” reveal themselves: For Beijing, it means that Taiwan belongs to the People’s Republic. For the USA and the West, on the other hand, “One-China” means that Beijing represents China, but that Taiwan can still choose its own path.
Furthermore, Qin writes:
In the case of the East China Sea, “it was Japan who attempted to ‘nationalize’ Diaoyu Dao ten years ago”, changing the status quo between China and Japan.
In the South China Sea, “the status quo is that regional countries are consulting on a code of conduct, “that will lead to meaningful and effective rules for the region.”
Regarding the border issues between China and India, “the status quo is that both sides are willing to ease the situation” and work together to protect the peace.
Regarding the Japan/East China Sea, Qin is indeed correct: It was Japan that unilaterally changed the status quo of the Diaoyu Islands ten years ago. However, this conflict is closely tied to the tensions in the South China Sea. And what Beijing has built here in recent years in the form of artificial islands, military facilities, and runways dwarfs anything previously seen.
Not to mention Beijing’s blatant rejection of a ruling by the Permanent Court of Arbitration in The Hague on China’s unjustified claims in the South China Sea. Rather, precisely such a ruling would be the objective basis for more far-reaching rules.
China sees itself surrounded
Basically, a clear division of roles emerges in each of these points: China considers itself a thoroughly peaceful country that harbors no hegemonic tendencies, quite unlike almost all other countries.
These are familiar words from Qin Gang. Even as a spokesman for the Chinese Foreign Ministry, he earned a reputation as a “wolf warrior“. This is the name given to members of a generation of Chinese diplomats who at times even aggressively defend the People’s Republic. Qin himself called such behavior a necessary response to baseless slander and unfounded attacks against China (China.Table reported). “It is impertinent to insult China while trying to prevent it from fighting back,” Qin said once.
The former Wolf Warrior presents himself as close to the people in Washington during a basketball game.
Qin also has a similar perspective on a conflict that China seems all too happy to look at decidedly uninvolved and from a safe distance: the war in Ukraine. Here, Qin remains true to Beijing’s line and calls the situation in Ukraine “deeply saddening”. In his view, it is now important to work for peace talks between Russia and Ukraine.
China will not abandon Russia
When Qin then discusses the causes of the war, it becomes clear how ideologically close Beijing and Moscow are in geopolitics. “People must realize that grounding one’s own security on other countries’ insecurity won’t work.” This is the very narrative Russia has been using, namely that the United States, NATO, and the West have cornered Russia to the point where Putin was forced to attack Ukraine in self-defense. So China will stay at Russia’s side, even under its new foreign minister.
Nevertheless, many observers hope that Qin will use his experience in America as the new foreign minister to ease the tensions between the two superpowers.
It indeed seems as if Qin has changed outwardly from a gruff wolf warrior to a polite diplomat. He even allowed himself to shoot some hoops at a basketball game to show his closeness to the people. It’s not what you say but the way you say it. But Xi Jinping still writes the words.
Anyone entering the EU from China as of Sunday will have to present a negative Covid test in some member states, even before boarding the plane. This applies to France and Italy, for example. Germany has not yet announced any mandatory testing for passengers from the People’s Republic. After a Wednesday meeting of the EU crisis response team (IPCR) in Brussels regarding the Covid situation, a report was released stating that EU member states are “strongly encouraged” to introduce mandatory pre-boarding Covid testing for all travelers.
A majority of EU states have spoken out in favor of a uniform mandatory testing requirement, an EU Commission spokesman said on Wednesday afternoon before the IPCR meeting. The Chinese Foreign Ministry already announced retaliatory measures should the EU introduce mandatory testing. Whether it will be introduced is now up to the individual EU states. The crisis team also recommended random testing of arriving travelers and wearing FFP2 masks on flights from the People’s Republic.
Much depends on what impact China’s opening up will have on the EU in the coming weeks. If travel resumes smoothly, then EU-China relations will also begin to improve in 2023. However, it is not yet clear what impact China’s rapid change, of course, will have in practice.
Movement at WTO, BRI – and maybe even the CAI
However, several important outstanding developments and issues, both new and old, will impact the relationship between Brussels and Beijing. An overview:
Change of direction: The Czech Republic will elect a new president in January. Incumbent Miloš Zeman is considered close to China and is not up for re-election. Consequently, there will almost certainly be an even stronger departure from Beijing in Prague than previously (China.Table reported). A withdrawal from the 14+1 cooperation format between Eastern and Central European states and China is not ruled out. There are several candidates to succeed Zeman. One of them: ex-Prime Minister Andrej Babiš, who is rather skeptical of Beijing.
Italy’s decision on the Belt and Road Initiative (BRI) will also be interesting in 2023. The right-wing populist Prime Minister Giorgia Meloni previously indicated that she would not renew the BRI memorandum. Brussels and other EU capitals are also looking closely at Berlin and its new China strategy from the Green Foreign Ministry.
New trade policy tools: Before the summer recess, the European Parliament wants to finalize its positions on the EU Supply Chain Act and the import ban on products made under forced labor, explains the chairman of the Trade Committee, Bernd Lange (SPD), in an interview with China.Table. “There will certainly be some points of conflict with China here.” In both areas, however, the EU Parliament now wants to make quick progress, according to Lange. The new Anti-Coercion Instrument is also expected to be finalized in the near future. At the end of January, negotiations on this will again take place between the EU institutions under the chairmanship of the Swedish EU Council Presidency. “Perhaps this will already be the last trilogue,” Lange says confidently. The European Commission is also considering taking a closer look at investments by European companies in China. In its 2023 work program, the Brussels-based authority announced plans to examine whether additional instruments are needed regarding the supervision of strategic foreign investments.
Renaissance of CAI? Lange does not rule out a revival of the shelved investment agreement between the EU and China. One prerequisite, however, would still be the lifting of sanctions against EU delegates. Last year, the leadership in Beijing signaled its willingness to sign the International Labor Organization (ILO) conventions against forced labor – something the European Parliament demands for further negotiations. “Now we have to enter into a dialogue to see what that means in concrete terms,” Lange stressed. Beijing previously only wanted to lift sanctions on MEPs if the EU lifts its sanctions against Chinese officials and an organization for human rights abuses in Xinjiang. However, the sanctions were renewed in December.
Russia’s war and Beijing’s position: The Russian invasion of Ukraine and China’s silent support will continue to shape relations between Brussels and Beijing in 2023. In the near future, French President Emmanuel Macron plans to travel to China. Macron had expressed his support for China as a possible mediator between Russia and the West after the G20 summit in Bali. The French leader earned scorn for this suggestion. According to media reports, US Secretary of State Antony Blinken will travel to Beijing before the end of January. A resumption of diplomatic meetings with Chinese representatives has given rise to hopes in Brussels that Beijing might yet distance itself from Moscow. However, the latest developments point in a different direction.
Geopolitical infrastructure: Touted as a sustainable alternative to China’s Belt and Road Initiative (BRI), the EU wants to breathe life into its Global Gateway project this year. The first official meeting between EU leaders and EU foreign ministers was held recently. But there are still no concrete projects. In the near future, however, the EU-wide invitation to tender for an advisory body consisting of entrepreneurs and CEOs is to commence, according to sources in the responsible Directorate General. The panel is said to be an important step toward more effectively involving the private sector. A summit meeting between EU and Latin American representatives will also be held in the first half of the year. Latin America will be a focus of Global Gateway.
WTO complaints: WTO disputes: Direct confrontation is on the horizon in late January, when two arbitration tribunals will be opened at the World Trade Organization (WTO) to deal with claims brought by the EU against China. The WTO proceedings concern the de facto trade embargo against Lithuania and patent protection of high-tech products. China opposed the creation of these arbitration tribunals. However, it can only vote them once. The EU announced to resubmit the request. The panel will then be set up automatically at the end of January 2023 and may drag on for up to a year and a half.
Taiwan and Indo-Pacific: The Swedish Council Presidency intends to further advance the EU’s strategy for cooperation in the Indo-Pacific, according to the Swedish program. Shortly before the end of the year, a first summit meeting was held between the EU and ASEAN, where both sides agreed on closer economic cooperation. In the penultimate week of December, an EU delegation from the Trade Committee also visited Taiwan. Further delegation trips to the island are also scheduled for 2023.
Coronavirus
Covid-19
Czech Republic
EU
Health
ILO
News
Germany warns of new supply bottlenecks
Due to the Covid wave in China, the Federal Ministry for Economic Affairs and Climate Action repeated its warning about supply chain problems for German companies. “Confidence in Chinese supplies has already been subjected to a drastic reality check in the wake of the pandemic,” a ministry spokesman told the Mediengruppe Bayern newspapers on Wednesday. Now supply chains could once again be disrupted. Experts do not expect German companies to suffer major production slumps, but supply bottlenecks could nevertheless become an additional burden alongside inflation and recession.
Timm Boenke of the German Institute for Economic Research (DIW) sees things differently. The lifting of Covid restrictions in China is currently helping to ease supply chains, Boenke told the AFP news agency. At the same time, however, there are now production problems due to many sick employees. In principle, China’s economy is recovering – but this poses an economic risk for Germany and Europe, Boenke said. The recovery could “lead to higher prices on commodity and energy markets and fuel inflation,” Boenke said. lik
Economic Situation
Economy
Supply chains
Trade
Beijing loosens coal ban for Australia
China has eased its unofficial ban on imports of Australian coal. Three major power utilities and a state-owned steelmaker received permission from Beijing’s leadership to import coal from Australia, Reuters reported, citing several people familiar with the matter. The National Development and Reform Commission (NDRC) reportedly already informed power suppliers Datang, Huaneng Group and Energy Investment Corporation, as well as steelmaker Baowu Steel, in a citation on Tuesday. The companies will be allowed to resume importing Australian coal for their own use.
In 2020, after cutting diplomatic ties with Canberra, Beijing declared that Australian coal did not meet the People’s Republic’s environmental standards and had thus issued an unofficial ban on imports. Australian wine and wheat also ended up on the ban list. The latest change now comes after a visit to Beijing by Australian Foreign Minister Penny Wong(China.Table reported). ari/rtr
Australia
Raw materials
Trade
End of the year run ensures recovery of the car market
Only thanks to the second half of the year and a run by consumers, the Chinese car market has slightly improved in 2022 compared to the previous year. According to preliminary figures, sales of passenger cars in the People’s Republic rose by 1.8 percent to 20.7 million cars, the industry association PCA announced on Wednesday. In 2021, sales had also increased slightly, but in previous years the figures had declined.
The end of zero-Covid with its repeated extremely hard lockdowns at the beginning of December contributed significantly to the recovery. In December, deliveries to end customers increased by 15 percent year-on-year to 2.43 million cars. That was also almost half more than in the previous month.
In November, the Covid lockdowns in many cities and regions were still weighing on sales and kept many people from buying a car. Sales also picked up at the end of the year because certain subsidies for more environmentally friendly cars were abolished in the new year. flee
Autoindustrie
WTA: Return depends on Peng Shuai case
The Women’s Tennis Association (WTA) still refuses to hold any women’s tournaments in China until the Peng Shuai case is satisfactorily resolved. “As we would do with any of our players globally, we have called for a formal investigation into the allegations by the appropriate authorities,” read a WTA statement obtained by Reuters.
While the WTA received proof that the 36-year-old was safe, a private meeting has not yet taken place. “We continue to hold firm on our position and our thoughts remain with Peng,” the statement added.
In November 2021, Peng Shuai accused a high-ranking party cadre of sexual abuse on the social network Weibo. However, the post was deleted, and the censorship authority also blocked any further postings about it on the Chinese internet. As a result, the WTA suspended all tournaments in China, including the season finale of the WTA in Shenzhen with the eight best players of the season. flee
Peng Shuai
Sports
WTA
Ant IPO plans get in motion
Alibaba’s financial division was released from the clutches of China’s regulators. A key subsidiary of Ant Group received the long-hoped-for approval for a capital increase at the end of the year. That gives investors new hope that Ant’s IPO will get another chance. The government halted the planned IPO in November 2020 and has since imposed increasingly strict regulations on Ant.
As the largest Chinese e-commerce group, Alibaba is the owner of Ant Group, a financial subsidiary with a huge customer base. But this is precisely why the constellation became too powerful in the eyes of the leadership in Beijing. Ant kept offering new digital financial products and collected data on a large part of the Chinese population, without banking rules applying to the tech company. Investors consider an Ant share, if the IPO happens, still an attractive investment. fin
Ant Group
Finance
Tech Crackdown
Technology
Heads
Omar Ramon Serrano Oswald – the Social Credit System under the microscope
Omar Ramon Serrano Oswald is a professor of International Management at the Business School of the Bern University of Applied Sciences.
Oman Ramon Serrano Oswald has already lived on many continents: As a child of Mexican-Swiss parents, he grew up in both Mexico and Germany and had to find his way in both worlds early on. While studying International Relations, he spent time in China, India, Brazil and Mexico. Today, he is a professor of International Management at the Business School of the Bern University of Appliresearchesucts research on North-South relations.
Among other things, his research focused on the ability of various emerging economies to assert their interests on the global stage and influence international institutions in their interests – in other words, how “policy takers” become “policymakers”. “In this regard, China stood out for its strong organizational structures and innovative companies, especially when it comes to setting norms and standards,” Serrano explains. Meanwhile, countries like India and Brazil are taking a cue from China’s success.
Research focus Social Credit System
As part of his recently completed postdoctoral position at the Technical University of Munich, Serrano then looked into the Chinese Social Credit System (SCS) and its impact on German companies in China. According to Serrano, many companies, both throughout Germany and Europe, often still know too little about this system. In his opinion, they need to become more actively involved with the System, which is currently expanded.
Although no German company was placed on the SCS “blacklist,” several administrative penalties have already been issued. On the other hand, the system also brings advantages. Some companies are already using it, for example, for their search for suppliers or new employees, which can be checked in advance via the freely accessible SCS platforms.
Local differences remain great
In general, however, one should not lose sight of China’s great heterogeneity, says Serrano. According to his research findings, even the SCS is implemented differently in the various provinces. Shanghai, for example, pays particular attention to environmental standards, while Jiangsu focuses primarily on labor issues.
There are indeed stronger tendencies toward centralization under Xi Jinping. But this does not mean that local differences are not nevertheless often enormous and should definitely be taken into account when dealing with China. Clemens Ruben
Research
Science
Society
Executive Moves
Jia Guide will serve as the new Chinese ambassador to Italy. He most recently served in Beijing as head of the Legal Department at the Foreign Affairs Office. Jia is an experienced diplomat. As ambassador to Peru, he was responsible for the country’s accession to the Belt and Road Initiative.
Isaac B. Kardon is the new Senior Fellow for China Studies at the Carnegie Endowment for International Peace think tank. Kardon was previously an assistant professor at the United States Naval War College, among other positions.
Anni Chen has been the new Associate Digital Marketing Manager at pharmaceutical manufacturer MSD China in Shanghai since December. Chen previously served as Senior Multi-Channel Marketing Specialist at Takeda Oncology.
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Dessert
It’s hard to imagine most German cities without Chinese restaurants, like this one in Berlin-Kreuzberg. Now, this culinary institution has turned 100 years old. In 1923, the first Chinese restaurant opened in Berlin at Kantstraße 130b. At least according to the German Federal Agency for Civic Education. It was said to be run by the former cook of a delegation and was called “Tientsin”. In the 1920s, a restaurant serving non-European cuisine was still considered exotic and was therefore very popular among bohemians.
