The appointment of Marco Rubio poses a dilemma for Beijing. The senator from Florida is set to become the new US Secretary of State under President Donald Trump. The same Rubio who has been sanctioned by the People’s Republic of China since 2020 for his public support of the pro-democracy mass protests in Hong Kong. This promises highly suspenseful encounters at the highest diplomatic level between the contenders for the global leadership role of the 21st century over the next four years.
Other staff appointments also pack a punch. Not only could Robert Lighthizer once again become Trade Representative under Trump. The veteran of US trade policy is regarded as the architect of the US countervailing duties on Chinese goods during Trump’s first term. As National Security Advisor, Mike Waltz knows only one response to China’s territorial claims to neighboring Taiwan: arming the island state even more.
What this means for Europe was outlined by the EU’s Foreign Affairs Commissioner-designate Kaja Kallas at her hearing in Brussels on Tuesday. She referred to China first and foremost as a competitor and systemic rival, writes Amelie Richter. This may no longer be surprising, but it underlines the general starting point for how the EU will position itself between the superpowers during Trump’s next term in office. Provided that Kallas is appointed to office. After all, the decision will not be made until next week.
Your Marcel Grzanna
Feature
Geopolitics: How Trump makes first jab against China
Marco Rubio will become US Secretary of State under Donald Trump. Beijing has still officially sanctioned him.
The appointment of Marco Rubio poses a dilemma for Beijing. The senator from Florida is set to become the new US Secretary of State under President Donald Trump. The same Rubio who has been sanctioned by the People’s Republic of China since 2020 for his public support of the pro-democracy mass protests in Hong Kong. The sanctions have never been officially lifted. This means that Rubio is still considered unwelcome in China and is barred from entering the country.
It is hard to imagine that the People’s Republic would reject the foreign minister of the global superpower at its national border if it did not willingly escalate relations. So Beijing might be forced to withdraw sanctions against a politician who detests the Communist Party with every fiber of his being. This could be interpreted as Trump’s first effective blow against Beijing.
Rubio and China – certainly no love affair. The senator from Florida speaks almost exclusively of “Communist China” as if it were the official name of the People’s Republic. He initiates rows of laws, the core of which all reflect his great mistrust of China’s political system. “We must ensure we have measures in place to protect the interests of the American people and stand up to Beijing’s aggression,” says Rubio.
Ex-military man Waltz becomes security advisor
He is doing what he can. In September alone, Rubio introduced three bills in the Senate, all of which document his perception of US-Chinese relations. Firstly, the Hong Kong Economic and Trade Office Certification Act. The bill is intended to prevent infiltration of the offices following the loss of their political autonomy to Beijing. Second, the Foreign Adversary Communications Transparency Act (FACT Act) would require the Interstate Communications Commission to transparently disclose licenses that allow foreign companies to operate in the US.
Third, Rubio pushed the Sanctions List Harmonization Act, which aims to better link US agencies to coordinate potential sanctions against “foreign adversaries like Communist China” and “prevent them from interfering in the US economy.” The senator’s bill received support from Congressman Mike Waltz in the House of Representatives.
And China will also have to deal with this intensively. The military expert from Florida will become Trump’s national security advisor. Waltz is considered a loyal Trump supporter who served as a colonel in the National Guard. He has been sounding the alarm for years that the US military is not sufficiently prepared for a potential conflict with China in the Indo-Pacific. Earlier this year, Waltz presented a strategy to prevent a war with China. His plan: the faster armament of Taiwan, signals of reassurance to US allies in the Pacific and the modernization of aircraft and ships.
Lighthizer was a nightmare for Beijing
Both appointments are already giving Beijing a taste of Trump’s second presidency, which by no means seeks to cozy up to China. Keeping China in check, not appeasing it – that seems to be Trump’s strategy. Pro-Beijing voices, such as US tech billionaire Elon Musk, could make the case for softening the tone to bring some balance.
Trump’s intention to tighten the reins on trade is undisputed. He reportedly wants to appoint Robert Lighthizer as Trade Representative, as he did in his first term of office. Lighthizer was a nightmare for Beijing. He was behind the strategy of imposing punitive tariffs on China. According to the Financial Times, however, the 77-year-old has yet to accept the post because he is hoping for an even more prominent position in the new cabinet. However, a return to the White House seems likely.
In whatever capacity, Lighthizer is considered a hardliner who could ensure that Trump quickly implements the 60 percent countervailing duties on Chinese products that he threatened during the election campaign. The lawyer specializing in trade law was responsible for shaping US trade policy during Trump’s first term in office and led negotiations on international agreements.
Coherent trade policy strategy
Above all, he was regarded as the architect of the countervailing duties against China. He believes an aggressive trade policy is the right recipe for defending against unfair Chinese practices. Back in the 1980s, as Deputy Trade Representative under Ronald Reagan, Lighthizer warned of the dangers of open trade with emerging economies.
Trump and Lighthizer share the feeling that they still have a score to settle with Beijing. The dispute started in 2018, when the Trump administration first introduced extensive tariffs on Chinese imports. Lighthizer was instrumental in helping Trump translate and implement his skeptical views on China’s practices into a coherent trade policy strategy. China responded swiftly by imposing its own punitive tariffs on US goods, particularly agricultural goods such as soybeans, leading to an escalating trade war in which both countries repeatedly hit each other with higher tariffs.
China’s trade surplus at record high
After extensive negotiations, the two countries agreed on the so-called “Phase One Trade Agreement,” which envisaged China buying more US goods. However, the deal fell apart soon after. Critics saw the agreement as unbalanced and China was unable to achieve the promised import volumes from the US due to the Covid pandemic. Trump’s new approach could now be to accuse China of breaking the deal.
Recent calculations by the financial service Bloomberg provide Trump with new ammunition. The global difference between Chinese exports and imports could reach almost one trillion dollars if it continues to widen at this rate. The trade surplus already rose to 785 billion dollars in the first ten months, the highest ever for this period.
Geopolitik
Translation missing.
EU foreign policy: These are Kaja Kallas’ most important statements on China
In her hearing, the EU’s High Representative-designate for Foreign Affairs clearly defined China as a competitor and systemic rival – but Kaja Kallas’ main focus was on another region: Russia and the war in Ukraine. “If the United States is worried about China, they should first be worried about Russia,” Kallas stressed.
The former Estonian head of government called for stronger consequences for Beijing’s support of Moscow which should result in “higher costs” for the Chinese government. Kallas did not specify what these costs should be. She expressed her willingness to discuss this with the foreign ministers of the member states should she become the new EU foreign affairs representative and EU Commission Vice-President.
Decision on confirmation not until next week
Kallas received partial applause at Tuesday’s hearing in the EU Parliament’s Committee on Foreign Affairs. She is still awaiting her confirmation. Together with other EU Commissioners, Kallas’ appointment will be voted on as a package next week.
Kallas clearly described which countries pose a threat to the security of the EU: Russia, China, Iran. However, she tended to be less precise in the details. Her most important quotes from the hearing:
Russia, Ukraine, China: “If the United States is worried about what happens in the South China Sea, they should be most worried about how we react to Russia’s war of aggression in Ukraine.” Kallas stressed that North Korea, Iran, Russia and China – albeit the latter in a more covert manner – were working together. She repeatedly drew a comparison between Ukraine and Taiwan, saying if there were no appropriate response to the attack on Ukraine, this would be an invitation for other aggressors. “You go for your neighbors’ territories, you kill some people, your own people, then you walk away with more than you had before.”
Taiwan: When asked what the EU would do if China tried to change the status quo in the Taiwan Strait, Kallas dodged the question: “On Taiwan, we support no unilateral changes to the status quo. It’s really important we work with our Asia Pacific partners to take down the tensions in the South China Sea.“
Vague statements about geo-economic plan
“New foreign economic policy”: Kallas first mentioned the term in her written response to questions during the application process. At the hearing, Kallas left open what she actually meant by this and where her priorities lie: “It is a policy that takes our geopolitical interests into account.”
Competition in Africa: “If we take maps of Russian militias in Africa and investments of China and put those maps on top of each other, we see they’re overlapping. Europe is a humanitarian superpower. We’re doing a lot, but we aren’t talking about it so much.”
Mercosur: “If we don’t do a trade agreement, then this void will be filled by China. I was really surprised to read in my materials that from 2020 to 2022, Chinese investment in Latin America has increased 34 times. This is my point, that if we are not there, they are.”
Brussels’ China strategy: “We have our own China policy and we have to adhere to it. We have to treat China more as a competitor and systemic rival. We really need to minimize the risks.” Kallas did not consider a revision of the 2019 China strategy to be urgently necessary.
USA as an ally and more level playing field for Global South
USA: “Of course we’re going to try to meet with the next president and his team, because we see ourselves as global allies.”
Arctic: “The Arctic is a strategically important region that is often overlooked. ( … ) We need to invest more time in this region.” Kallas also referred to alleged Chinese and Russian research vessels sailing in the region.
BRICS: “BRICS are not a homogenous group of countries. But we need to understand the signal they are sending out,” including that current multilateral forums do not address all the problems of the Global South.
Global Gateway: Kallas repeatedly underlined the EU’s self-description of the infrastructure initiative as an alternative to the BRI, especially in Serbia: “They [China] don’t care about the local people or their health, because they only care about the wealth they get from the factories.” According to Kallas, Global Gateway has not yet reached its full potential: “We need to use Global Gateway, but we also need to show what we can do with Global Gateway and what the difference is between the EU and China.”
EU-Außenpolitik
Geopolitik
Global Gateway
Sinolytics Radar
Raw materials: Global rare earths and magnet supply chains at risk
Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
The Kachin Independence Army (KIA) rebel group recently took control of the REE-rich towns of Panwa and Chipwe, previously held by the Border Guard Forces group, which is closely aligned with the military government.
Small-scale REE mines are often illegally operated by Chinese businessmen in collaboration with local authorities. There are reports of lacking labor and environmental standards. Small trading companies export REE to China.
Sinolytics estimates that Kachin State supplies approximately 20 percent of China’s REE consumption, mainly delivered in the form of oxides. These are particularly rare and valuable heavy REE.
China is critically dependent on REE imports from Myanmar. As REE consumption from electric vehicles, wind and other applications is quickly growing, China can no longer rely on its domestic deposits to satisfy demand.
Myanmar’s former civilian government restricted REE mining, and trade continued to decline during the Covid period. However, exports rose to a new record in 2023 as the military government again promoted REE exports to China.
The current battles could disrupt mining activities in Kachin state and exports to China. This could, for instance, affect the supply of dysprosium for permanent magnets and erbium for optical applications.
However, it seems possible that KIA will be open to continuing to export REE, as it has done in areas it previously dominated.
However, China would risk relations with the Myanmar government if it tolerates trade with KIA. One solution could be to increase REE imports from Lao PDR.
Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.
Windkraft
News
Customs duty exemption: German states demand abolition for non-European online retailers
The German government has been called upon to lobby at the EU level for the rapid abolition of customs duty exemptions for non-European e-commerce platforms. This is the demand of the German states of Bavaria and Hamburg for the Conference of Economics Ministers on Nov. 21. The customs duty exemption limit currently stands at €150. This benefits Chinese online retailers such as Temu and Shein. “Furthermore, it can be observed that this exemption limit is being exploited to avoid customs duties on goods with a higher material value, for example by splitting shipments into several individual packages or under-declaring the value of the goods”, the draft resolution states.
Although the abolition of the exemption limit is being considered as part of the reform of EU customs law, the draft calls this to be implemented much more quickly than previously planned. The aim is to prevent distortions of competition and keep the burden on customs authorities to a minimum. In addition, third-country platformsshould be directly liable for product safety risks and be obliged to provide detailed information on the origin and production conditions of their goods.
Séjourné advises against shopping on Temu and Shein
As early as September, the German government called on the EU Council to take tougher action against cheap Chinese online retailers. The EU Commission has also initiated formal proceedings against Temu, partly because banned products are repeatedly sold via the platform.
Stéphane Séjourné, EU Commissioner-designate for Industrial Strategy, also supported the abolition of the rule on Tuesday. The exception for parcels with a value of less than €150 was a “real anomaly”, said Séjourné at his hearing for the EU post. He also advised EU consumers against shopping for Christmas on these platforms: “As we enter the Christmas period, I would urge you to look for carefully… if you are buying online, they may bear the CE logo, but they not necessarily always produced in compliance with our standards”, the Frenchman emphasized. max/ari
Customs
E-commerce
Plattformen
Trade
Trade policy
Air Force: Which questions about the new stealth bomber remain unanswered
The J-35A stealth bomber at its unveiling in Zhuhai.
China unveiled new stealth bombers to the public on Tuesday. One day after the 75th anniversary of the founding of the People’s Liberation Army (PLA), the secret surrounding the J-35 and the J-35A was revealed at the air show in Zhuhai in southern China. The fighter jets are the result of ten years of development.
Even as it takes to the skies more than 10 years after its progenitor, the J-31, made its first flight, few details are public about the J-35’s performance. “Because of the black box typically surrounding PLA miltech developments, we won’t be too certain of the J-35’s performance,” said Collin Koh of the S. Rajaratnam School of International Studies, in Singapore.
The J-35 and J-35A are designed and built by the Shenyang Aircraft Corporation, a unit of the state-owned Aviation Industry Corporation of China. The state-controlled People’s Daily news outlet said ahead of the air show the J-35A “mainly carries out the task of seizing and maintaining air supremacy”.
Both J-35 variants are considerably smaller than China’s other stealth aircraft, the land-based J-20 fighter. An estimated 200 J-20s are operational with the PLAAF. The J-35A is superficially similar to the Lockheed Martin F-35, whose shape – from fuselage to control surfaces – is designed to minimize how large it appears on radar. It is not publicly known if the J-35 models have special radar-absorbent coatings, as the F-35 does, or communications and radar systems that are difficult to detect. rtr
Militär
Tibet: Evidence of detained monastic students in Chinese boarding schools
The Chinese authorities proceed to consistently pursue the state’s assimilation policy against the Tibetan minority despite foreign protests. According to Radio Free Asia (RFA), two monastery schools have been closed, and some of their students are now being held in Chinese boarding schools under “prison-like conditions.” RFA refers to unnamed sources in Tibet.
RFA reports on hundreds of young monks who had attended the Kirti Monastery school in the eastern Tibetan prefecture of Ngaba. “Since being forcibly removed from the monastery, the students have been denied contact with their parents and receive inadequate medical care when ill,” RFA quoted one of its sources as saying. Parents who insist on seeing their children are threatened with arrest.
Cultural and linguistic uprooting
The school of the Lhamo Kirti Monastery in the neighboring county of Dzoge was also closed. Its more than 1,600 students have been assigned to state schools instead, where they are forced to study the ideology of China’s President Xi Jinping, or “Xi Jinping Thought,” according to reports. The Tibetan children and young people aged between six and 17 are now taught exclusively in Mandarin.
Special rapporteurs of the United Nations accuse China of attempting to deprive young Tibetans of their cultural and linguistic heritage in order to increasingly assimilate them with the country’s Han Chinese majority. The school closures force families to send their children to Chinese state schools, often far away from their hometowns, just so that they can get an education at all. The German government has also criticized the state boarding school system and called on China to respect Tibetan culture.
‘Integration’ according to the five-year plan
The International Campaign for Tibet (ICT) expressed deep concern about the latest closures. As part of its systematic sinicization and assimilation policy, the Chinese government has implemented several laws and guidelines to forcibly turn Tibetans into so-called model citizens for the “Chinese nation,” the ICT said. It suspects that it is part of a “sophisticated assimilation program” that is being introduced gradually. It accuses China of trying to avoid international criticism and creating the impression that the assimilation of Tibetans is a natural process.
One of the stated goals of Ngaba Prefecture’s 14th five-year plan for basic education is to “strengthen the Chinese nation’s sense of community” and calls for the “integration of schools, mixed classes and mixed accommodation for all ethnic groups actively and steadily.”
Information about school closures and their implications only slowly emerges from Tibet and sometimes takes weeks or months before it becomes known outside China. The informants are taking a great risk. They face imprisonment and torture. grz
Kultur
Zhuhai: Man kills dozens in car rampage
According to Chinese authorities, dozens of people have been killed and others seriously injured in a car attack in China. By Tuesday evening, the authorities had reported 35 dead and 43 injured. A small SUV crashed into a group of people training outside a sports center in the city of Zhuhai, local police said on Tuesday.
The suspected driver attempted to flee but was apprehended. The 62-year-old inflicted injuries to his own neck using a knife. He is being treated in hospital. Initial evidence indicated that he had acted out of anger over a divorce.
According to reports, the incident occurred on Monday evening (local time). A video shows at least 20 people lying on the ground. President Xi Jinping ordered extensive measures to treat the injured and called for the perpetrator to be severely punished, reported Chinese state broadcaster CCTV. The central government has sent a team to support the investigation. rtr
Gesellschaft
Translation missing.
Executive Moves
Michael Gartover has been General Assembly Engineer at Mercedes-Benz FBAC in Fuzhou since September. Previously, the trained mechatronics engineer was Process Planner Production/ EE Commissioning at Beijing Benz Automotive in Beijing.
Guo Feng has been a Restraint System Engineer at Mercedes-Benz in China since September. He worked for over two years at the IAC Group as Product Engineering Supervisor in Tianjin. He will be based in Beijing.
Is something changing in your organization? Let us know at heads@table.media!
Dessert
The famous Wutong Rock near Shenzhen has turned out to be quite hollow and an obvious fake. A large hole at the back of the supposedly stony boulder exposes the interior. Instead of solid rock, there is a wire frame and a brick wall. The “rock” on the hill is a popular tourist destination because it is said to offer the best view of the southern Chinese metropolis. The fact that it is not a natural rock at all but a construction by crafty marketers gives it a presumably unique Chinese characteristic. According to local media reports, two hikers discovered the hole when they climbed behind a barrier to take a photo. The park management is now said to have officially confirmed the renovation of the object and announced future mystical tours for late November.
The appointment of Marco Rubio poses a dilemma for Beijing. The senator from Florida is set to become the new US Secretary of State under President Donald Trump. The same Rubio who has been sanctioned by the People’s Republic of China since 2020 for his public support of the pro-democracy mass protests in Hong Kong. This promises highly suspenseful encounters at the highest diplomatic level between the contenders for the global leadership role of the 21st century over the next four years.
Other staff appointments also pack a punch. Not only could Robert Lighthizer once again become Trade Representative under Trump. The veteran of US trade policy is regarded as the architect of the US countervailing duties on Chinese goods during Trump’s first term. As National Security Advisor, Mike Waltz knows only one response to China’s territorial claims to neighboring Taiwan: arming the island state even more.
What this means for Europe was outlined by the EU’s Foreign Affairs Commissioner-designate Kaja Kallas at her hearing in Brussels on Tuesday. She referred to China first and foremost as a competitor and systemic rival, writes Amelie Richter. This may no longer be surprising, but it underlines the general starting point for how the EU will position itself between the superpowers during Trump’s next term in office. Provided that Kallas is appointed to office. After all, the decision will not be made until next week.
Your Marcel Grzanna
Feature
Geopolitics: How Trump makes first jab against China
Marco Rubio will become US Secretary of State under Donald Trump. Beijing has still officially sanctioned him.
The appointment of Marco Rubio poses a dilemma for Beijing. The senator from Florida is set to become the new US Secretary of State under President Donald Trump. The same Rubio who has been sanctioned by the People’s Republic of China since 2020 for his public support of the pro-democracy mass protests in Hong Kong. The sanctions have never been officially lifted. This means that Rubio is still considered unwelcome in China and is barred from entering the country.
It is hard to imagine that the People’s Republic would reject the foreign minister of the global superpower at its national border if it did not willingly escalate relations. So Beijing might be forced to withdraw sanctions against a politician who detests the Communist Party with every fiber of his being. This could be interpreted as Trump’s first effective blow against Beijing.
Rubio and China – certainly no love affair. The senator from Florida speaks almost exclusively of “Communist China” as if it were the official name of the People’s Republic. He initiates rows of laws, the core of which all reflect his great mistrust of China’s political system. “We must ensure we have measures in place to protect the interests of the American people and stand up to Beijing’s aggression,” says Rubio.
Ex-military man Waltz becomes security advisor
He is doing what he can. In September alone, Rubio introduced three bills in the Senate, all of which document his perception of US-Chinese relations. Firstly, the Hong Kong Economic and Trade Office Certification Act. The bill is intended to prevent infiltration of the offices following the loss of their political autonomy to Beijing. Second, the Foreign Adversary Communications Transparency Act (FACT Act) would require the Interstate Communications Commission to transparently disclose licenses that allow foreign companies to operate in the US.
Third, Rubio pushed the Sanctions List Harmonization Act, which aims to better link US agencies to coordinate potential sanctions against “foreign adversaries like Communist China” and “prevent them from interfering in the US economy.” The senator’s bill received support from Congressman Mike Waltz in the House of Representatives.
And China will also have to deal with this intensively. The military expert from Florida will become Trump’s national security advisor. Waltz is considered a loyal Trump supporter who served as a colonel in the National Guard. He has been sounding the alarm for years that the US military is not sufficiently prepared for a potential conflict with China in the Indo-Pacific. Earlier this year, Waltz presented a strategy to prevent a war with China. His plan: the faster armament of Taiwan, signals of reassurance to US allies in the Pacific and the modernization of aircraft and ships.
Lighthizer was a nightmare for Beijing
Both appointments are already giving Beijing a taste of Trump’s second presidency, which by no means seeks to cozy up to China. Keeping China in check, not appeasing it – that seems to be Trump’s strategy. Pro-Beijing voices, such as US tech billionaire Elon Musk, could make the case for softening the tone to bring some balance.
Trump’s intention to tighten the reins on trade is undisputed. He reportedly wants to appoint Robert Lighthizer as Trade Representative, as he did in his first term of office. Lighthizer was a nightmare for Beijing. He was behind the strategy of imposing punitive tariffs on China. According to the Financial Times, however, the 77-year-old has yet to accept the post because he is hoping for an even more prominent position in the new cabinet. However, a return to the White House seems likely.
In whatever capacity, Lighthizer is considered a hardliner who could ensure that Trump quickly implements the 60 percent countervailing duties on Chinese products that he threatened during the election campaign. The lawyer specializing in trade law was responsible for shaping US trade policy during Trump’s first term in office and led negotiations on international agreements.
Coherent trade policy strategy
Above all, he was regarded as the architect of the countervailing duties against China. He believes an aggressive trade policy is the right recipe for defending against unfair Chinese practices. Back in the 1980s, as Deputy Trade Representative under Ronald Reagan, Lighthizer warned of the dangers of open trade with emerging economies.
Trump and Lighthizer share the feeling that they still have a score to settle with Beijing. The dispute started in 2018, when the Trump administration first introduced extensive tariffs on Chinese imports. Lighthizer was instrumental in helping Trump translate and implement his skeptical views on China’s practices into a coherent trade policy strategy. China responded swiftly by imposing its own punitive tariffs on US goods, particularly agricultural goods such as soybeans, leading to an escalating trade war in which both countries repeatedly hit each other with higher tariffs.
China’s trade surplus at record high
After extensive negotiations, the two countries agreed on the so-called “Phase One Trade Agreement,” which envisaged China buying more US goods. However, the deal fell apart soon after. Critics saw the agreement as unbalanced and China was unable to achieve the promised import volumes from the US due to the Covid pandemic. Trump’s new approach could now be to accuse China of breaking the deal.
Recent calculations by the financial service Bloomberg provide Trump with new ammunition. The global difference between Chinese exports and imports could reach almost one trillion dollars if it continues to widen at this rate. The trade surplus already rose to 785 billion dollars in the first ten months, the highest ever for this period.
Geopolitik
Translation missing.
EU foreign policy: These are Kaja Kallas’ most important statements on China
In her hearing, the EU’s High Representative-designate for Foreign Affairs clearly defined China as a competitor and systemic rival – but Kaja Kallas’ main focus was on another region: Russia and the war in Ukraine. “If the United States is worried about China, they should first be worried about Russia,” Kallas stressed.
The former Estonian head of government called for stronger consequences for Beijing’s support of Moscow which should result in “higher costs” for the Chinese government. Kallas did not specify what these costs should be. She expressed her willingness to discuss this with the foreign ministers of the member states should she become the new EU foreign affairs representative and EU Commission Vice-President.
Decision on confirmation not until next week
Kallas received partial applause at Tuesday’s hearing in the EU Parliament’s Committee on Foreign Affairs. She is still awaiting her confirmation. Together with other EU Commissioners, Kallas’ appointment will be voted on as a package next week.
Kallas clearly described which countries pose a threat to the security of the EU: Russia, China, Iran. However, she tended to be less precise in the details. Her most important quotes from the hearing:
Russia, Ukraine, China: “If the United States is worried about what happens in the South China Sea, they should be most worried about how we react to Russia’s war of aggression in Ukraine.” Kallas stressed that North Korea, Iran, Russia and China – albeit the latter in a more covert manner – were working together. She repeatedly drew a comparison between Ukraine and Taiwan, saying if there were no appropriate response to the attack on Ukraine, this would be an invitation for other aggressors. “You go for your neighbors’ territories, you kill some people, your own people, then you walk away with more than you had before.”
Taiwan: When asked what the EU would do if China tried to change the status quo in the Taiwan Strait, Kallas dodged the question: “On Taiwan, we support no unilateral changes to the status quo. It’s really important we work with our Asia Pacific partners to take down the tensions in the South China Sea.“
Vague statements about geo-economic plan
“New foreign economic policy”: Kallas first mentioned the term in her written response to questions during the application process. At the hearing, Kallas left open what she actually meant by this and where her priorities lie: “It is a policy that takes our geopolitical interests into account.”
Competition in Africa: “If we take maps of Russian militias in Africa and investments of China and put those maps on top of each other, we see they’re overlapping. Europe is a humanitarian superpower. We’re doing a lot, but we aren’t talking about it so much.”
Mercosur: “If we don’t do a trade agreement, then this void will be filled by China. I was really surprised to read in my materials that from 2020 to 2022, Chinese investment in Latin America has increased 34 times. This is my point, that if we are not there, they are.”
Brussels’ China strategy: “We have our own China policy and we have to adhere to it. We have to treat China more as a competitor and systemic rival. We really need to minimize the risks.” Kallas did not consider a revision of the 2019 China strategy to be urgently necessary.
USA as an ally and more level playing field for Global South
USA: “Of course we’re going to try to meet with the next president and his team, because we see ourselves as global allies.”
Arctic: “The Arctic is a strategically important region that is often overlooked. ( … ) We need to invest more time in this region.” Kallas also referred to alleged Chinese and Russian research vessels sailing in the region.
BRICS: “BRICS are not a homogenous group of countries. But we need to understand the signal they are sending out,” including that current multilateral forums do not address all the problems of the Global South.
Global Gateway: Kallas repeatedly underlined the EU’s self-description of the infrastructure initiative as an alternative to the BRI, especially in Serbia: “They [China] don’t care about the local people or their health, because they only care about the wealth they get from the factories.” According to Kallas, Global Gateway has not yet reached its full potential: “We need to use Global Gateway, but we also need to show what we can do with Global Gateway and what the difference is between the EU and China.”
EU-Außenpolitik
Geopolitik
Global Gateway
Sinolytics Radar
Raw materials: Global rare earths and magnet supply chains at risk
Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
The Kachin Independence Army (KIA) rebel group recently took control of the REE-rich towns of Panwa and Chipwe, previously held by the Border Guard Forces group, which is closely aligned with the military government.
Small-scale REE mines are often illegally operated by Chinese businessmen in collaboration with local authorities. There are reports of lacking labor and environmental standards. Small trading companies export REE to China.
Sinolytics estimates that Kachin State supplies approximately 20 percent of China’s REE consumption, mainly delivered in the form of oxides. These are particularly rare and valuable heavy REE.
China is critically dependent on REE imports from Myanmar. As REE consumption from electric vehicles, wind and other applications is quickly growing, China can no longer rely on its domestic deposits to satisfy demand.
Myanmar’s former civilian government restricted REE mining, and trade continued to decline during the Covid period. However, exports rose to a new record in 2023 as the military government again promoted REE exports to China.
The current battles could disrupt mining activities in Kachin state and exports to China. This could, for instance, affect the supply of dysprosium for permanent magnets and erbium for optical applications.
However, it seems possible that KIA will be open to continuing to export REE, as it has done in areas it previously dominated.
However, China would risk relations with the Myanmar government if it tolerates trade with KIA. One solution could be to increase REE imports from Lao PDR.
Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.
Windkraft
News
Customs duty exemption: German states demand abolition for non-European online retailers
The German government has been called upon to lobby at the EU level for the rapid abolition of customs duty exemptions for non-European e-commerce platforms. This is the demand of the German states of Bavaria and Hamburg for the Conference of Economics Ministers on Nov. 21. The customs duty exemption limit currently stands at €150. This benefits Chinese online retailers such as Temu and Shein. “Furthermore, it can be observed that this exemption limit is being exploited to avoid customs duties on goods with a higher material value, for example by splitting shipments into several individual packages or under-declaring the value of the goods”, the draft resolution states.
Although the abolition of the exemption limit is being considered as part of the reform of EU customs law, the draft calls this to be implemented much more quickly than previously planned. The aim is to prevent distortions of competition and keep the burden on customs authorities to a minimum. In addition, third-country platformsshould be directly liable for product safety risks and be obliged to provide detailed information on the origin and production conditions of their goods.
Séjourné advises against shopping on Temu and Shein
As early as September, the German government called on the EU Council to take tougher action against cheap Chinese online retailers. The EU Commission has also initiated formal proceedings against Temu, partly because banned products are repeatedly sold via the platform.
Stéphane Séjourné, EU Commissioner-designate for Industrial Strategy, also supported the abolition of the rule on Tuesday. The exception for parcels with a value of less than €150 was a “real anomaly”, said Séjourné at his hearing for the EU post. He also advised EU consumers against shopping for Christmas on these platforms: “As we enter the Christmas period, I would urge you to look for carefully… if you are buying online, they may bear the CE logo, but they not necessarily always produced in compliance with our standards”, the Frenchman emphasized. max/ari
Customs
E-commerce
Plattformen
Trade
Trade policy
Air Force: Which questions about the new stealth bomber remain unanswered
The J-35A stealth bomber at its unveiling in Zhuhai.
China unveiled new stealth bombers to the public on Tuesday. One day after the 75th anniversary of the founding of the People’s Liberation Army (PLA), the secret surrounding the J-35 and the J-35A was revealed at the air show in Zhuhai in southern China. The fighter jets are the result of ten years of development.
Even as it takes to the skies more than 10 years after its progenitor, the J-31, made its first flight, few details are public about the J-35’s performance. “Because of the black box typically surrounding PLA miltech developments, we won’t be too certain of the J-35’s performance,” said Collin Koh of the S. Rajaratnam School of International Studies, in Singapore.
The J-35 and J-35A are designed and built by the Shenyang Aircraft Corporation, a unit of the state-owned Aviation Industry Corporation of China. The state-controlled People’s Daily news outlet said ahead of the air show the J-35A “mainly carries out the task of seizing and maintaining air supremacy”.
Both J-35 variants are considerably smaller than China’s other stealth aircraft, the land-based J-20 fighter. An estimated 200 J-20s are operational with the PLAAF. The J-35A is superficially similar to the Lockheed Martin F-35, whose shape – from fuselage to control surfaces – is designed to minimize how large it appears on radar. It is not publicly known if the J-35 models have special radar-absorbent coatings, as the F-35 does, or communications and radar systems that are difficult to detect. rtr
Militär
Tibet: Evidence of detained monastic students in Chinese boarding schools
The Chinese authorities proceed to consistently pursue the state’s assimilation policy against the Tibetan minority despite foreign protests. According to Radio Free Asia (RFA), two monastery schools have been closed, and some of their students are now being held in Chinese boarding schools under “prison-like conditions.” RFA refers to unnamed sources in Tibet.
RFA reports on hundreds of young monks who had attended the Kirti Monastery school in the eastern Tibetan prefecture of Ngaba. “Since being forcibly removed from the monastery, the students have been denied contact with their parents and receive inadequate medical care when ill,” RFA quoted one of its sources as saying. Parents who insist on seeing their children are threatened with arrest.
Cultural and linguistic uprooting
The school of the Lhamo Kirti Monastery in the neighboring county of Dzoge was also closed. Its more than 1,600 students have been assigned to state schools instead, where they are forced to study the ideology of China’s President Xi Jinping, or “Xi Jinping Thought,” according to reports. The Tibetan children and young people aged between six and 17 are now taught exclusively in Mandarin.
Special rapporteurs of the United Nations accuse China of attempting to deprive young Tibetans of their cultural and linguistic heritage in order to increasingly assimilate them with the country’s Han Chinese majority. The school closures force families to send their children to Chinese state schools, often far away from their hometowns, just so that they can get an education at all. The German government has also criticized the state boarding school system and called on China to respect Tibetan culture.
‘Integration’ according to the five-year plan
The International Campaign for Tibet (ICT) expressed deep concern about the latest closures. As part of its systematic sinicization and assimilation policy, the Chinese government has implemented several laws and guidelines to forcibly turn Tibetans into so-called model citizens for the “Chinese nation,” the ICT said. It suspects that it is part of a “sophisticated assimilation program” that is being introduced gradually. It accuses China of trying to avoid international criticism and creating the impression that the assimilation of Tibetans is a natural process.
One of the stated goals of Ngaba Prefecture’s 14th five-year plan for basic education is to “strengthen the Chinese nation’s sense of community” and calls for the “integration of schools, mixed classes and mixed accommodation for all ethnic groups actively and steadily.”
Information about school closures and their implications only slowly emerges from Tibet and sometimes takes weeks or months before it becomes known outside China. The informants are taking a great risk. They face imprisonment and torture. grz
Kultur
Zhuhai: Man kills dozens in car rampage
According to Chinese authorities, dozens of people have been killed and others seriously injured in a car attack in China. By Tuesday evening, the authorities had reported 35 dead and 43 injured. A small SUV crashed into a group of people training outside a sports center in the city of Zhuhai, local police said on Tuesday.
The suspected driver attempted to flee but was apprehended. The 62-year-old inflicted injuries to his own neck using a knife. He is being treated in hospital. Initial evidence indicated that he had acted out of anger over a divorce.
According to reports, the incident occurred on Monday evening (local time). A video shows at least 20 people lying on the ground. President Xi Jinping ordered extensive measures to treat the injured and called for the perpetrator to be severely punished, reported Chinese state broadcaster CCTV. The central government has sent a team to support the investigation. rtr
Gesellschaft
Translation missing.
Executive Moves
Michael Gartover has been General Assembly Engineer at Mercedes-Benz FBAC in Fuzhou since September. Previously, the trained mechatronics engineer was Process Planner Production/ EE Commissioning at Beijing Benz Automotive in Beijing.
Guo Feng has been a Restraint System Engineer at Mercedes-Benz in China since September. He worked for over two years at the IAC Group as Product Engineering Supervisor in Tianjin. He will be based in Beijing.
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Dessert
The famous Wutong Rock near Shenzhen has turned out to be quite hollow and an obvious fake. A large hole at the back of the supposedly stony boulder exposes the interior. Instead of solid rock, there is a wire frame and a brick wall. The “rock” on the hill is a popular tourist destination because it is said to offer the best view of the southern Chinese metropolis. The fact that it is not a natural rock at all but a construction by crafty marketers gives it a presumably unique Chinese characteristic. According to local media reports, two hikers discovered the hole when they climbed behind a barrier to take a photo. The park management is now said to have officially confirmed the renovation of the object and announced future mystical tours for late November.
