Today, the EU Trade Policy Committee (TPC) is set to discuss China’s export restrictions on germanium and gallium. The export decision announced by Beijing earlier this week added another dimension to the trade dispute between the US and China, which continues to concern Brussels.
The timing of the public announcement regarding the export restrictions on these crucial industrial metals is not coincidental, as Joern Petring reports. This is because US Treasury Secretary Janet Yellen will travel to China on Thursday. However, the expectations from the US side for the trip are not high. Nevertheless, Beijing has already prepared a wishlist.
In other areas, it appears that the ideas in the Chinese capital are not yet fully developed. The long-awaited action plan to reduce methane emissions, which cause more damage in a shorter time than CO2, is still pending. Nico Beckert points out a significant obstacle that is delaying the plan from Beijing: energy security.
Shortly after Secretary of State Antony Blinken, US Treasury Secretary Janet Yellen travels to China on Thursday. Her four-day visit indicates that diplomatic travel between Beijing and Washington is finally picking up pace after the pandemic. However, this does not mean that tensions are decreasing.
Yellen’s team preferred to manage expectations ahead of her arrival. “Significant breakthroughs” are not expected, according to her ministry. The purpose of the trip is primarily to “deepen communication and stabilize relations.” The goal is to “avoid misunderstandings.” The bar couldn’t be set much lower.
Apparently, Beijing hopes for more. The visiting guest, Yellen, was praised by the state press before her arrival for her “pragmatic attitude towards China” compared to many of her colleagues in Washington. She has repeatedly advocated against “decoupling” and for maintaining “constructive” economic relations.
They are quite willing to “achieve cooperative results through dialogue,” writes the party newspaper Global Times, presenting a wishlist right away: The tariffs imposed on Chinese goods during the Trump era have still not been lifted. These clearly harm both sides. The Biden administration has done nothing so far to correct these mistakes.
It is also harmful that the US is sanctioning more and more Chinese companies and restricting market access “under the guise of national security interests”. More than 1,300 companies are now on various US control and sanctions lists. China will not tolerate all of this and has not randomly placed exports of germanium and gallium, two much-needed industrial metals, under export controls just before Yellen’s visit on Tuesday.
The Chinese Ministry of Commerce is responding to the long list of technology sanctions already imposed by Washington against China. In April, Beijing fired another warning shot when the Chinese Cyber Administration initiated an investigation against US semiconductor manufacturer Micron.
So far, there are no signs that the US side is impressed by these jabs. On the contrary, in the coming weeks, Washington will make a series of decisions that would further harm the Chinese economy. The White House is working on rules that would prohibit US companies from investing in parts of the Chinese technology sector, primarily focusing on artificial intelligence, quantum computing and processors. Biden could approve the plans as early as this summer.
Furthermore, there are discussions in Washington about further export restrictions on advanced computer chips. Loopholes for Nvidia processors are supposed to be closed. These processors are highly sought after by tech companies in China because they are needed for the development of AI models. As reported by US media shortly before Yellen’s visit, further restrictions are being considered, which would prevent affected Chinese entities from even renting cloud services for the required computing power.
Especially with these measures that have not yet been decided, the Chinese side may try to achieve something with Yellen. According to Minxin Pei, a commentator at Bloomberg, China would do well to show goodwill. For example, Beijing could end its campaign against US consulting firms. The leadership could also delay the implementation of the recently passed anti-spying law. Additionally, adopting a milder tone towards Taiwan would help ease tensions.
“The struggling Chinese economy gives the US some leverage,” says Pei. Yellen should use this in Beijing to move China towards a more moderate course. In turn, the Chinese leadership should recognize that China would benefit more from a relaxation of the relationship than the US.
The recent German-Chinese government consultations are considered a “remarkable success of German climate diplomacy,” according to the environmental organization Germanwatch. China, in a joint statement with Germany, has expressed the need for accelerated emissions reductions within this decade, which is seen as a rare commitment, as noted by the environmental organization. Jennifer Morgan, the Special Envoy for International Climate Action, was also enthusiastic, stating, “We have managed to make China say: We are ready to do more, to create more ambition, to accelerate our energy transition.”
However, the cooperation between the two countries is primarily focused on the energy transition and decarbonization of the industry. Regarding methane emissions, which China is the largest global contributor to, the two sides have only agreed to “expand cooperation in the future.” This is considered a “necessary step as China’s NDC (Nationally Determined Contributions) currently only includes targets for reducing CO2 emissions,” Jennifer Morgan told Table.Media. Reducing methane emissions is seen as the “fastest opportunity we have to immediately slow the rate of global warming,” according to the US environmental organization Environmental Defense Fund.
China had initially planned to present an action plan to reduce methane emissions by the end of 2022. However, the document is still delayed. The People’s Republic is the largest methane emitter and ambitious action is hindered by economic interests and dependence on coal.
However, methane causes greater short-term climate damage than CO2:
Half of China’s methane emissions come from the energy sector, primarily coal mining, accounting for 90 to 95 percent of energy sector methane emissions. Agriculture is responsible for over 30 percent of the emissions, mainly due to rice cultivation. During COP27 in November 2022, China’s climate envoy, Xie Zhenhua, announced an action plan that would include specific measures to reduce methane in the energy, agriculture and waste sectors. However, Xie already noted that China’s ability to control the gas was “weak”. The focus was on improving monitoring capabilities.
Methane has only gained significant importance in the past year in Chinese politics, according to Cory Combs, an energy and climate expert at consultancy firm Trivium China. Energy security remains much more important for Beijing. “There is no systematic approach to reduce methane emissions from coal mines,” says Combs.
Additionally, the gas sector has “no specific incentives” to do so. On the contrary, the Chinese government is trying to boost domestic gas production. Measures to reduce methane emissions would hinder this goal. “I find it unlikely that Beijing will exert additional economic pressure on the gas industry while trying to increase domestic gas supply,” says Combs.
For these reasons, China is not part of the Global Methane Pledge, a global pact to reduce methane emissions. China’s energy supply relies heavily on domestic coal. Lutz Weischer from Germanwatch believes that China is reluctant to make global commitments and promises due to concerns about the direct impact on energy security. Additionally, the pledge is perceived as a Western initiative.
Due to the high costs associated with reducing methane emissions, there are also few voluntary plans from the coal industry to lower emissions. If the mining operators pass on these costs to coal-fired power plants, it could lead to energy shortages, as experienced in 2021. At that time, power plants did not replenish their coal stocks adequately due to high prices, resulting in shortages and eventually rationing of electricity for the industrial sector. The central government is determined to prevent a recurrence of such a power crisis. Combs believes that it will take a few more years for methane to become more significant in practice.
Methane emissions from agriculture are also difficult to reduce, according to Weischer’s assessment. There are fears that methane reduction will come at a higher cost, he said. Since the secure supply of food is one of the core tasks of the CCP, methane reduction is a sensitive issue.
Already in the past, there were plans to reduce methane emissions in the energy sector. But in the last 15 years, the self-imposed targets for capturing methane in the coal sector could not be achieved. In some cases, mine operators would even have circumvented government regulations. Gas with a methane content of 30 percent was supposed to be captured and used. But there are indications that mine operators would have diluted the gas in order to simply continue releasing it into the atmosphere.
Since China will continue to be very dependent on coal for the foreseeable future, it is essential to reduce methane emissions from this sector. But this is more difficult than in the oil and gas industry:
According to state media reports, at least 15 people have died in southwestern China due to heavy rainfall in recent days. Four more individuals are currently missing in the city of Chongqing, as reported by the Xinhua news agency, citing local authorities.
Flooding has forced thousands of people to evacuate their homes in the affected area. Bridges have been destroyed, houses and cars swept away. President Xi Jinping, according to Xinhua, called on authorities and ministries to improve their weather warnings and coordination of relief efforts. Ensuring the safety of people and property is of the utmost importance.
In the past few weeks, heavy rainfall has already caused devastating floods and mudslides. Additionally, many parts of the country have experienced hailstorms and unusually high temperatures. Many people suspect that these developments are a result of global warming. flee/rtr
“As long as industrialized countries fail to fulfill their commitments in climate financing, it creates a shield for China to not fulfill its own climate responsibilities,” says Belinda Schaepe, China Policy Advisor at the international climate think tank E3G.
The Berlin native started learning Chinese as a third foreign language in the 9th grade at Kolleg St. Blasien in the Black Forest. As part of her studies, she participated in a three-month school exchange to Shanghai, which further fueled her interest in China and solidified her desire to study Sinology and Business Administration at the University of Tuebingen.
However, Schaepe soon realized that she was more interested in politics and climate issues than economics, which led her to pursue a double master’s degree in International Relations at the London School of Economics and Peking University. During her studies, she experienced the different perspectives on foreign policy issues and approaches between Europe and China, and she also honed her Chinese language skills. Sustainability topics increasingly came into focus, prompting her to write her thesis in London on reforestation projects by international institutions in China.
For the past two years, Schaepe has been working as a China Policy Advisor at E3G, specializing in climate diplomacy – a dream job at the intersection of her major areas of interest: China and climate. As part of her work, she advises European decision-makers on climate issues with China, promotes exchanges between European and Chinese experts and decision-makers on climate-related topics, and produces analyses on China’s climate policy and diplomacy.
China is the world’s largest emitter of greenhouse gases, but it also dominates the production of renewable technologies and is heavily affected by climate change, explains Schaepe. Therefore, the country has a great interest in making progress in this area. While China is on track to achieve its self-imposed climate targets of reaching peak emissions before 2030, these targets alone are not sufficient to limit global warming to 1.5°C. Therefore, Schäpe believes that the EU should not make concessions if China tries to use climate commitments as leverage in other areas.
Europe must take a strategic approach to climate engagement with China, emphasizes Schaepe. In the climate field as well, China is seen as a partner, competitor, and rival – a partner in technical cooperation, such as emissions trading or the establishment of standards; a competitor in new energy technologies; and a rival in securing supply chains for the energy transition. For the EU, it is, therefore, crucial to take a leading role in climate action in order to exert pressure on China and achieve its own climate goals. Clemens Ruben
An increasing number of Chinese middle-class parents are sending their children to “character-building” summer camps. These military-like programs in the wilderness aim to strengthen the competitiveness and resilience of the younger generation. However, summer drill activities like this log hanging in Hefei are facing growing criticism due to unqualified staff, exhaustion and accidents.
Today, the EU Trade Policy Committee (TPC) is set to discuss China’s export restrictions on germanium and gallium. The export decision announced by Beijing earlier this week added another dimension to the trade dispute between the US and China, which continues to concern Brussels.
The timing of the public announcement regarding the export restrictions on these crucial industrial metals is not coincidental, as Joern Petring reports. This is because US Treasury Secretary Janet Yellen will travel to China on Thursday. However, the expectations from the US side for the trip are not high. Nevertheless, Beijing has already prepared a wishlist.
In other areas, it appears that the ideas in the Chinese capital are not yet fully developed. The long-awaited action plan to reduce methane emissions, which cause more damage in a shorter time than CO2, is still pending. Nico Beckert points out a significant obstacle that is delaying the plan from Beijing: energy security.
Shortly after Secretary of State Antony Blinken, US Treasury Secretary Janet Yellen travels to China on Thursday. Her four-day visit indicates that diplomatic travel between Beijing and Washington is finally picking up pace after the pandemic. However, this does not mean that tensions are decreasing.
Yellen’s team preferred to manage expectations ahead of her arrival. “Significant breakthroughs” are not expected, according to her ministry. The purpose of the trip is primarily to “deepen communication and stabilize relations.” The goal is to “avoid misunderstandings.” The bar couldn’t be set much lower.
Apparently, Beijing hopes for more. The visiting guest, Yellen, was praised by the state press before her arrival for her “pragmatic attitude towards China” compared to many of her colleagues in Washington. She has repeatedly advocated against “decoupling” and for maintaining “constructive” economic relations.
They are quite willing to “achieve cooperative results through dialogue,” writes the party newspaper Global Times, presenting a wishlist right away: The tariffs imposed on Chinese goods during the Trump era have still not been lifted. These clearly harm both sides. The Biden administration has done nothing so far to correct these mistakes.
It is also harmful that the US is sanctioning more and more Chinese companies and restricting market access “under the guise of national security interests”. More than 1,300 companies are now on various US control and sanctions lists. China will not tolerate all of this and has not randomly placed exports of germanium and gallium, two much-needed industrial metals, under export controls just before Yellen’s visit on Tuesday.
The Chinese Ministry of Commerce is responding to the long list of technology sanctions already imposed by Washington against China. In April, Beijing fired another warning shot when the Chinese Cyber Administration initiated an investigation against US semiconductor manufacturer Micron.
So far, there are no signs that the US side is impressed by these jabs. On the contrary, in the coming weeks, Washington will make a series of decisions that would further harm the Chinese economy. The White House is working on rules that would prohibit US companies from investing in parts of the Chinese technology sector, primarily focusing on artificial intelligence, quantum computing and processors. Biden could approve the plans as early as this summer.
Furthermore, there are discussions in Washington about further export restrictions on advanced computer chips. Loopholes for Nvidia processors are supposed to be closed. These processors are highly sought after by tech companies in China because they are needed for the development of AI models. As reported by US media shortly before Yellen’s visit, further restrictions are being considered, which would prevent affected Chinese entities from even renting cloud services for the required computing power.
Especially with these measures that have not yet been decided, the Chinese side may try to achieve something with Yellen. According to Minxin Pei, a commentator at Bloomberg, China would do well to show goodwill. For example, Beijing could end its campaign against US consulting firms. The leadership could also delay the implementation of the recently passed anti-spying law. Additionally, adopting a milder tone towards Taiwan would help ease tensions.
“The struggling Chinese economy gives the US some leverage,” says Pei. Yellen should use this in Beijing to move China towards a more moderate course. In turn, the Chinese leadership should recognize that China would benefit more from a relaxation of the relationship than the US.
The recent German-Chinese government consultations are considered a “remarkable success of German climate diplomacy,” according to the environmental organization Germanwatch. China, in a joint statement with Germany, has expressed the need for accelerated emissions reductions within this decade, which is seen as a rare commitment, as noted by the environmental organization. Jennifer Morgan, the Special Envoy for International Climate Action, was also enthusiastic, stating, “We have managed to make China say: We are ready to do more, to create more ambition, to accelerate our energy transition.”
However, the cooperation between the two countries is primarily focused on the energy transition and decarbonization of the industry. Regarding methane emissions, which China is the largest global contributor to, the two sides have only agreed to “expand cooperation in the future.” This is considered a “necessary step as China’s NDC (Nationally Determined Contributions) currently only includes targets for reducing CO2 emissions,” Jennifer Morgan told Table.Media. Reducing methane emissions is seen as the “fastest opportunity we have to immediately slow the rate of global warming,” according to the US environmental organization Environmental Defense Fund.
China had initially planned to present an action plan to reduce methane emissions by the end of 2022. However, the document is still delayed. The People’s Republic is the largest methane emitter and ambitious action is hindered by economic interests and dependence on coal.
However, methane causes greater short-term climate damage than CO2:
Half of China’s methane emissions come from the energy sector, primarily coal mining, accounting for 90 to 95 percent of energy sector methane emissions. Agriculture is responsible for over 30 percent of the emissions, mainly due to rice cultivation. During COP27 in November 2022, China’s climate envoy, Xie Zhenhua, announced an action plan that would include specific measures to reduce methane in the energy, agriculture and waste sectors. However, Xie already noted that China’s ability to control the gas was “weak”. The focus was on improving monitoring capabilities.
Methane has only gained significant importance in the past year in Chinese politics, according to Cory Combs, an energy and climate expert at consultancy firm Trivium China. Energy security remains much more important for Beijing. “There is no systematic approach to reduce methane emissions from coal mines,” says Combs.
Additionally, the gas sector has “no specific incentives” to do so. On the contrary, the Chinese government is trying to boost domestic gas production. Measures to reduce methane emissions would hinder this goal. “I find it unlikely that Beijing will exert additional economic pressure on the gas industry while trying to increase domestic gas supply,” says Combs.
For these reasons, China is not part of the Global Methane Pledge, a global pact to reduce methane emissions. China’s energy supply relies heavily on domestic coal. Lutz Weischer from Germanwatch believes that China is reluctant to make global commitments and promises due to concerns about the direct impact on energy security. Additionally, the pledge is perceived as a Western initiative.
Due to the high costs associated with reducing methane emissions, there are also few voluntary plans from the coal industry to lower emissions. If the mining operators pass on these costs to coal-fired power plants, it could lead to energy shortages, as experienced in 2021. At that time, power plants did not replenish their coal stocks adequately due to high prices, resulting in shortages and eventually rationing of electricity for the industrial sector. The central government is determined to prevent a recurrence of such a power crisis. Combs believes that it will take a few more years for methane to become more significant in practice.
Methane emissions from agriculture are also difficult to reduce, according to Weischer’s assessment. There are fears that methane reduction will come at a higher cost, he said. Since the secure supply of food is one of the core tasks of the CCP, methane reduction is a sensitive issue.
Already in the past, there were plans to reduce methane emissions in the energy sector. But in the last 15 years, the self-imposed targets for capturing methane in the coal sector could not be achieved. In some cases, mine operators would even have circumvented government regulations. Gas with a methane content of 30 percent was supposed to be captured and used. But there are indications that mine operators would have diluted the gas in order to simply continue releasing it into the atmosphere.
Since China will continue to be very dependent on coal for the foreseeable future, it is essential to reduce methane emissions from this sector. But this is more difficult than in the oil and gas industry:
According to state media reports, at least 15 people have died in southwestern China due to heavy rainfall in recent days. Four more individuals are currently missing in the city of Chongqing, as reported by the Xinhua news agency, citing local authorities.
Flooding has forced thousands of people to evacuate their homes in the affected area. Bridges have been destroyed, houses and cars swept away. President Xi Jinping, according to Xinhua, called on authorities and ministries to improve their weather warnings and coordination of relief efforts. Ensuring the safety of people and property is of the utmost importance.
In the past few weeks, heavy rainfall has already caused devastating floods and mudslides. Additionally, many parts of the country have experienced hailstorms and unusually high temperatures. Many people suspect that these developments are a result of global warming. flee/rtr
“As long as industrialized countries fail to fulfill their commitments in climate financing, it creates a shield for China to not fulfill its own climate responsibilities,” says Belinda Schaepe, China Policy Advisor at the international climate think tank E3G.
The Berlin native started learning Chinese as a third foreign language in the 9th grade at Kolleg St. Blasien in the Black Forest. As part of her studies, she participated in a three-month school exchange to Shanghai, which further fueled her interest in China and solidified her desire to study Sinology and Business Administration at the University of Tuebingen.
However, Schaepe soon realized that she was more interested in politics and climate issues than economics, which led her to pursue a double master’s degree in International Relations at the London School of Economics and Peking University. During her studies, she experienced the different perspectives on foreign policy issues and approaches between Europe and China, and she also honed her Chinese language skills. Sustainability topics increasingly came into focus, prompting her to write her thesis in London on reforestation projects by international institutions in China.
For the past two years, Schaepe has been working as a China Policy Advisor at E3G, specializing in climate diplomacy – a dream job at the intersection of her major areas of interest: China and climate. As part of her work, she advises European decision-makers on climate issues with China, promotes exchanges between European and Chinese experts and decision-makers on climate-related topics, and produces analyses on China’s climate policy and diplomacy.
China is the world’s largest emitter of greenhouse gases, but it also dominates the production of renewable technologies and is heavily affected by climate change, explains Schaepe. Therefore, the country has a great interest in making progress in this area. While China is on track to achieve its self-imposed climate targets of reaching peak emissions before 2030, these targets alone are not sufficient to limit global warming to 1.5°C. Therefore, Schäpe believes that the EU should not make concessions if China tries to use climate commitments as leverage in other areas.
Europe must take a strategic approach to climate engagement with China, emphasizes Schaepe. In the climate field as well, China is seen as a partner, competitor, and rival – a partner in technical cooperation, such as emissions trading or the establishment of standards; a competitor in new energy technologies; and a rival in securing supply chains for the energy transition. For the EU, it is, therefore, crucial to take a leading role in climate action in order to exert pressure on China and achieve its own climate goals. Clemens Ruben
An increasing number of Chinese middle-class parents are sending their children to “character-building” summer camps. These military-like programs in the wilderness aim to strengthen the competitiveness and resilience of the younger generation. However, summer drill activities like this log hanging in Hefei are facing growing criticism due to unqualified staff, exhaustion and accidents.
