News that caught our eye / The week ending May 12, 2023
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NOTE: The news reports below are not in chronological order. There is often a time lag in their reaching the US and in gaining our attention. These reports reflect the opinions of a variety of news sources.
China Warns of ‘Strong’ Reaction If EU Sanctions Its Companies / May 9, 2023
China said it would react “strictly and strongly” to any sanctions imposed on its companies by the EU for supplying Russia with so-called “dual-use goods”—products made for both military and civilian purposes. The EU has proposed strict trade restrictions to several Chinese companies allegedly supplying the Kremlin with banned goods for its war machine in Ukraine. (Bloomberg).
Canada summons Chinese envoy over alleged legislator intimidation / May 4, 2023
Canadian authorities summoned Chinese Ambassador Cong Pei Wu after allegations surfaced that the Chinese government threatened a Canadian conservative opposition party leader and his family because he spoke out against China. The two countries have sparred over human rights abuses, election interference, and potential Chinese secret police stations in Canada (Al Jazeera).
Mendicino calls out CSIS as Trudeau refuses to clear up confusion over Chong case / May 5, 2023
After Prime Minister Justin Trudeau repeatedly denied being briefed about China’s potential threats against Canadian politician Michael Chong and his family in 2021, Chong declared that indeed that information had been reported to Trudeau’s government. Other officials stated that such critical information is normally shared with the upper levels of government (CBC News).
Canada expelling Chinese diplomat over alleged legislator threats / May 8, 2023
In an effort to show resolve against potential Chinese interference and harassment in Canada, the Trudeau administration expelled Chinese diplomat Zhao Wei from Canada this week. China promised in-kind countermeasures and denied all of the allegations. Some wondered why it took Ottawa so long to finally act on the matter (Al Jazeera).
'Not intimidated': PM Trudeau says after China expels Canadian diplomat / May 9, 2023
Jennifer Lynn Lalonde, a Canadian consul based in Shanghai, was expelled from China on Tuesday in retaliation to Canada’s expulsion of Zhao Wei, a Chinese diplomat in Canada on Monday, due to his alleged involvement in harassing conservative representative Michael Chong and his family in Hong Kong back in 2021 (CTV News).
China is making its move in Ukraine, and the US has no chance of matching it / May 7, 2023
When Chinese President Xi Jinping called Ukrainian President Zelensky in April, brokering a peace deal was not the only item on his to-do list. Becoming a pre-eminent, global negotiator was the reward for his efforts, and he had plenty of cards in his hand to play a winning hand (ABC News).
Beijing is using its currency to insulate against future sanctions / May 7, 2023
US sanctions against Russia for its invasion of Ukraine ended up strengthening both the Russian ruble and the Chinese yuan. Now, China is internationalizing the yuan to further increase its stability and economic prominence. Between March 2021 and March 2022, the use of the yuan more than doubled in the international finance market.
Israel, Jordan, Egypt want 'stronger' US role in region as China makes inroads / May 7, 2023
House Intel Representatives reported that Israel, Jordan, and Egypt want stronger ties and a stronger presence in the Middle East due to China’s encroaching presence there and Iran’s return to advancing its nuclear abilities. One official stated that all three countries prefer to work with the US than with China (Fox News).
China, Beware of the New Anti-Espionage Law / May 10, 2023
China passed a new anti-espionage law in April that will take effect on July 1st. The new law is vague enough to make any information shared outside of China that might be seen by the CCP as critical of the CCP would be considered espionage and a threat to national security (Bitter Winter).
Cheng Lei: 1,000 days imprisoned in China for an unknown reason / May 10, 2023
A journalist and native Chinese citizen of Australia has been incarcerated for nearly 3 years in China, but while a trial has been held, no sentencing has been handed down. Other business people have also been detained for “espionage” and other vague charges, making foreign investors leery of living in China. Nearly 100% of those charged are convicted in Chinese courts (BBC News).
These maps show how far China’s freight railways are stretching across Asia / May 9, 2023
Xi Jinping’s Belt and Road Initiative, begun in 2013, includes a vast new railway system connecting China to its neighbors and even Europe. Geographically well situated, China is expanding its trade to Russia, Vietnam, Laos, Cambodia, and eastern Asian countries like Uzbekistan and Afghanistan through railways (CNBC).
Consumer prices in China rose 0.1% in April, the slowest rate in two years / May 10, 2023
China’s inflation rate is blissfully low, but may also be edging into “deflation” territory according to one economist. The domestic tourism sector is improving, but Chinese consumers are still hesitant to buy high ticket purchases; a weak labor market and a slowly recovering housing market also weigh on China’s economic recovery (CNBC).
Wang Yi and Jake Sullivan meet; Xi inspects Xiong’an / May 11, 2023
Top US and Chinese officials met this week in Vienna, perhaps marking a new round of talks between the rival countries. To help those talks to proceed, the US may withhold further sanctions against China and not disclose its findings regarding the Chinese spy balloon fiasco from January. Both would be unpopular domestically (Sinocism).