China and the middle powers: A week in review
Chinese diplomat demands a retraction from Belgian foreign minister
Dear China watchers, Welcome to this week’s world round up.
Before we begin, we’d like to take a few seconds to welcome our new subscribers–it’s good to have you here. And a warm hello to everyone who’s been following us for a while! We’re still fairly new to Substack and your support means a lot to us. As always, feel free to email us with tips and feedback. Don’t be shy : )
You’re in for a great ride today. Here’s a glimpse into this edition:
A trip down the rabbit hole to examine how some middle powers have been responding to Chinese police stations reportedly setting up shop in their backyards
Beijing’s failed attempt at censoring Belgium’s foreign minister
The final compromise on China’s port deal in Germany
A message from Taiwan to Canada regarding an overdue investment protection agreement
A look at the latest projects connected to China in both Iran and Saudi Arabia
Turkey and China’s spat over human rights
Last but not least, the middle powers featured in this week’s People’s Daily.
Ireland
Ireland became the first middle power to order the Chinese government to close its controversial overseas police service stations. On Thursday, the Irish foreign affairs department informed the Chinese embassy that the station in Dublin “should close and cease operations.” The department had raised the presence of the police service station with the embassy in recent weeks.
“The Department noted that actions of all foreign states on Irish territory must be in compliance with international law and domestic law requirements,” a spokesman told The Irish Times.
The Chinese embassy in Dublin confirmed “that the activities of the office have ceased” after insisting the office was not involved in any law enforcement activity and only offered Chinese nationals administrative assistance such as helping with driver’s licence renewals.
Earlier this month signage of the station was removed, but the embassy did not respond to questions about whether the station had stopped operating.
Allegations that Beijing has been running the illegal stations were first made in September by Spain-based NGO Safeguard Defenders. The report triggered a barrage of inquiries from the middle powers.
Portugal is the latest country to start investigating the claims, joining five other countries (Canada, Spain, Ireland, Germany, Netherlands) that have already announced probes into the matter.
Netherlands
Dutch media broke a story on Tuesday with verified reports that China’s overseas police station directly contacted Chinese dissidents in the Netherlands in an attempt to coerce them into returning to China. Like most middle powers, the Dutch government didn’t explicitly confirm the existence of these foreign law enforcement agencies but said on Wednesday it was investigating these reports. The agencies are not registered with the Chamber of Commerce. Maxime Hovenkamp, a spokeswoman for the Dutch foreign ministry, said that without the government’s approval, these police offices would be illegal.
Meanwhile, the Chinese embassy in the Netherlands said it was “not aware” of and “not involved” with the offices described in the reports. Foreign ministry spokesman Wang Wenbin said the allegations regarding the stations are “simply untrue” at a routine press conference on Wednesday. Wang said they are service centers helping people who can’t return home due to COVID-19.
However, an official from the Chinese Ministry of Foreign Affairs in Shanghai corroborated the findings from Safeguard Defenders’ investigation to a Spanish publication. The anonymous source was quoted saying that bilateral treaties are “very cumbersome” and Europe is reluctant to extradite. “I do not see what is wrong in pressuring criminals to face justice,” he told El Correo.
The article by Dutch broadcaster RTL Nieuws and investigative media outlet Follow the Money is a great read woven with detailed recounts of the alleged intimidation tactics used by the Chinese state.
One eye-catching detail buried at the bottom: according to a Chinese state media agency, the Netherlands now has a third Chinese police station.
Spotted: Hungary MP Tompos Márton tweeted on Tuesday about the alleged police stations in Budapest, claiming the office had removed identifying billboards from its window. In another tweet on Thursday, the MP included a letter from the Hungarian government in response to an inquiry he had made regarding the police stations in his country.
"...the Ministry of Interior has no knowledge of Chinese police presence in Budapest"
Belgium
According to a confidential message seen by Politico, a diplomat from the Chinese embassy in Belgium, in a meeting with a Belgian foreign ministry official, demanded that Foreign Affairs Minister Hadja Lahbib "retract" an interview in which she warned that China's commercial ships could be "converted into warships for military equipment.” Lahbib declined to do so.
In the interview published by Belgian paper Tijd, Lahbib also said that Belgium, along with the rest of the EU, should reduce its strategic dependence on China. She referenced a recent report that warned about the role of the Chinese maritime sector in the Belgian ports. The minister’s comments reflect the country’s tougher approach towards Beijing.
The Chinese diplomat, whose name was not mentioned in the article, implied in the meeting that the trade relationship between the two countries would be at risk if the Belgian government didn’t show respect. The exchange is a telling example of what Beijing could do to influence its public perception in Europe.
Germany
The Germany-China port acquisition spiel is finally over. On Wednesday, Berlin greenlit Cosco’s deal to buy a stake in the country's largest port. The cabinet approved a 24.9 per cent stake investment by the Chinese shipping giant in one of three terminals at the Hamburg port.
The approved investment is less than the initially planned 35 percent stake and does not give Cosco any say in management or strategic decisions.
If you’ve been following us for a while, you’re probably familiar with Olaf Scholz’s nuanced attitude toward China. Last week, the German chancellor reportedly pushed for the deal despite concerns from multiple ministries.
The foreign ministry was so upset over the approval that it drew up a note on the cabinet meeting documenting its rejection, according to Reuters.
Meanwhile, Scholz has pinned a date (Nov. 4) for his China visit with a business delegation. Berlin said it would press China to open up its markets while raising human rights concerns. This will be the first visit by a European Union leader to Beijing since the start of the pandemic.
Canada
Taiwan’s new top envoy in Canada called on Ottawa to begin negotiations on the long-awaited foreign investment protection agreement (FIPA) with Taipei.
Harry Tseng, who’s been leading Taiwan’s de-facto consulate in Vancouver since the end of August, told The Globe and Mail:
“[Canada] can do something really beneficial of both of us: that is FIPA. That is the message I am trying to tell.”
Both governments said they would start talks on the agreement in January as part of the island’s attempts to boost ties with fellow democracies amid growing pressure from Beijing. Taiwan’s previous representative in Canada, Winston Wen-yi Chen, said the exploratory talks between the two parties were successful in an opinion piece he wrote before leaving his post.
Alice Hansen, press secretary for International Trade Minister Mary Ng, didn’t say if Ottawa will proceed with formal negotiations but confirmed the department is “reviewing the results of the exploratory discussions.”
Talks about closer ties with Taiwan have made headlines when a delegation of Canadian MPs including the chair of the international trade committee visited the island earlier this month.
Taiwan’s direct investment in Canada reached about C$256 million in 2020, a number that’s “certainly not reflective of the full potential of the bilateral economic relationship nor of Taiwan’s global economic clout,” wrote Hugh Stephens, former executive fellow at Asia Pacific Foundation of Canada. The island was the 60th largest recipient of Canadian money in 2020, with investments reaching a little over $550 million.
Iran
Spotted: Iranian Ambassador to China and Mongolia, Mohammad Keshavarzzadeh, congratulated the CCP on its 20th National Congress. He said he has met with Chinese political leaders over the past four years, all of whom “emphasized the need to further develop relations with Iran in the new era.”
One of the main issues discussed, he said, was implementing the 25-year cooperation agreement between the two countries.
On Thursday, Rostam Qasemi, Iranian minister of roads and urban development, said Beijing is going to conduct a preliminary study within the next two months looking at the launch of the Mashhad-Tehran high-speed train project.
The electrification of the Mashhad-Tehran railway has been a priority for the Iranian government for a few years. Beijing inked a US$1.5-billion contract in 2017 with Tehran by which China would provide funds and construction equipment in return for a cut from ticket sales. However, Iranian media reported last year that China had backed out of the project due to unspecified issues.
Saudi Arabia
A subsidiary of the Hong-Kong based financial services provider Valuable Capital has become the first and only corporation from Asia to receive initial licenses for conducting dealing, advising and custody services in the kingdom.
The subsidiary, called Valuable Capital Financial Company, was registered in Riyadh earlier this year. It’s a partnership between its parent company and eWTP Arabia Capital, a venture capital firm with offices in China and Saudi Arabia.
Turkey
Turkey and China have been pointing fingers at each other over human rights violations during United Nations meetings over the past two weeks.
Last week, Turkey joined 43 countries in expressing concerns over China’s abuses against Uyghurs in Xinjiang and called on Beijing to cooperate with the United Nations Human Rights Commission and independent observers regarding the matter.
This week, China's deputy permanent representative to the UN, Geng Shuang, called on Turkey to comply with international human rights laws, holding Ankara responsible for depleting water resources in northeastern Syria.
Chinese
Worth-noting headlines from the International News section of the People’s Daily:
Tuesday
非洲加速发展人工智能产业 (国际观点) | Opinion: Africa accelerates AI adoption
首届泛非人工智能会议日前在埃塞俄比亚首都亚的斯亚贝巴落幕。与会人士一致认为，人工智能、区块链、物联网、云计算、5G等技术，是非洲大陆实现发展繁荣的重要技术工具。
“The first Pan-African Artificial Intelligence Conference ended recently in Addis Ababa, the capital of Ethiopia. Participants agreed that AI, blockchain, Internet of Things, cloud computing, 5G and other technologies are important tools for the African continent to achieve development and prosperity.”
”相关数据显示，目前非洲大陆有2500多家公司将人工智能技术研发纳入业务范畴，近半数人工智能技术公司是近5年内成立的。第三届非洲科学、技术和创新论坛发布的题为《利用新兴技术：人工智能和纳米技术的案例》报告指出，非洲人工智能产业正加速发展，到2030年如能占到全球人工智能市场的10%，其对非洲经济的贡献有望达到1.5万亿美元”
“Data shows that there are currently over 2,500 companies in Africa that incorporate AI technology R&D into their business scope, and nearly half of the AI tech companies were established within the past five years. The report titled Harnessing Emerging Technologies: a case study on AI and Nanotechnology released by the 3rd African Forum on Science, Technology and Innovation points out that the AI industry in Africa is developing rapidly, and by 2030, if it can account for 10 per cent of the global AI market, its contribution to the African economy is expected to reach US$1.5 trillion.”
The article mentions AI tech advancement in two African middle powers: South Africa and Egypt. The authors attributed the success to their dedication to R&D and government support.
Friday
撒哈拉以南非洲经济企稳向好（国际视点）| Opinion: Sub-Saharan African economy bounces back
“国际货币基金组织近期发布的地区报告预计，2022年撒哈拉以南非洲地区经济将增长3.6%，2023年增长率有望维持在3.7%的水平。国际货币基金组织非洲部主任塞拉西近期表示，撒哈拉以南非洲地区经济增长潜力大，正逐步重回增长轨道，地区国家应借助更多创新和绿色增长模式努力发展经济，同时加强国际合作，以推动改革、持续引进外资等举措应对挑战。”
“A recent regional report by the International Monetary Fund (IMF) predicts that the sub-Saharan African economy will grow by 3.6 per cent in 2022, and the growth rate is expected to remain at 3.7 per cent in 2023. Selassie, Director of the African Department of the IMF, said recently that sub-Saharan Africa has great potential for economic growth. Countries in the region should focus on innovation and green economies, strengthen international cooperation and continuously introduce foreign capital.”
“中非合作带来发展机遇
尽管撒哈拉以南非洲大多数经济体步入经济复苏周期，但基础仍显脆弱，地区国家还面临粮食短缺、全球货币紧缩、通胀形势不乐观等挑战。与此同时，受美联储连续激进加息影响，一些非洲国家本币加速贬值，甚至面临债务违约风险。许多国际投资者因美联储加息而撤离非洲，影响非洲经济发展前景。”
“Opportunities rise in China-Africa cooperation
Although most economies in sub-Saharan Africa have started to recover, they are still facing challenges such as food shortages and global inflation. At the same time, affected by the continued interest rate hikes by the Federal Reserve, African countries’ currencies are depreciating. Some even face the risk of defaults. Many international investors are withdrawing from Africa due to the interest rate increase by the Federal Reserve, which affects the prospects of Africa's economic development.”
Thank you for reading. Have a great weekend.