Germany Wants a Share in China’s Successful Belt and Road

When countries become prosperous with the infrastructures built by the Belt and Road initiative, the infrastructures, especially power generation, telecommunications and transport ones, will be greatly profitable. Seeing China’s initial success, Germany wants a share in it.

That is why Reuters says in its report “Germany, China pledge to open markets, deepen financial cooperation” yesterday, “The two countries will also support efforts to find areas of cooperation between China’s Belt and Road initiative and the EU’s strategy for linking Europe and Asia, as well as European infrastructure planning.”

Germany certainly will not take such great risks as China is doing in building infrastructures for connection with Asia, Europe, the Middle East and Africa as China’s connections may be blocked by the US that is trying to contain China. There is no danger Europe’s connections to the outside will be blocked by the US. However, when there are prospects of substantial earning, Germany and Europe as a whole certainly do not want to miss it.

Japan, the third largest world economy, has already said it will join China’s Belt and Road. Now, Germany, the fourth largest economy, will follow suit. What will the US, the largest world economy, do? Demonizing China by telling the lies about debt trap and corruption bonanza cannot reduce the initiative’s charm.

Will the US lose the opportunities to make money through the initiative? No. Lots of US large companies are already in China and making big money. They can invest from China in the countries when the initiative is successful instead of investing in the US where labor is expensive and market is saturated. US government will not be benefited but US big money will. Remember, US big money is not patriotic.

Therefore, deal or no deal, China will be the winner in US-China trade war as it is winning with diplomacy instead of tariff warfare. Chinese market and the world market outside the US are much bigger and growing fast, China can afford loss of US market but cheep Chinese goods are indispensable for lots of American people.

Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at


Assimilation Makes China the Greatest Nation

SCMP says in its report “Tesla boss Elon Musk says he loves China, so Premier Li Keqiang offers him a green card” on January 10 that China has attracted Elon Musk to love China and offered him a green card.

In my previous post on US-China trade war I said that China shall not retaliate at US enterprises in China by making things difficult for them because of US tariff rise and restriction to Chinese investment. On the contrary, China shall treat foreign enterprises equally as Chinese ones.

The Chinese nation has become so great a nation due to its ability of assimilation. In Chinese history, in the Spring and Autumn Period (776BC to 453BC), a Chinese fiefdom of the national Chinese Zhou Dynasty had only a few hundred households. and was surrounded by various other races. Zhou’s fiefdoms were but dots in the vast Zhou Kingdom.

However, by the Warring States Period (453BC to 221BC), Zhou’s fiefdoms had assimilated almost all the other races around them so that the seven strong remaining fiefdoms had each grown into a kingdom with a population of one million people or more.

By the time the State of Qin unified China (221BC), China has grown into a large nation of Chinese people surrounded by other races around its border.

When China was weak, those races invaded China and set up quite a few of their kingdoms but they all were gradually assimilated and became Chinese.

Even the Mongolians and Manchurians that conquered China have been assimilated and become Chinese. Now the Mongolians in China can still be regarded as an ethnic minority, but the Manchurians have entirely become Han Chinese so that the Manchurian race has disappeared.

The EU and the United States are having the problems of immigration of lots of poor uneducated people from other countries. Such immigrants may become their burdens to provide jobs and education. China, on the contrary, shall attract immigration of economic and political elite from other countries to bring prosperity and create jobs for it.

In the above-mentioned two periods, the sovereign of almost every state earnestly recruited political and military talents from other states to bring prosperity and win wars for him. King Zhao of Yan, the smallest and poorest among the seven kingdoms in the period, is the best example. With great respect and high remuneration he succeeded in recruiting exceptional political and military talents from other kingdoms to help him defeat and almost conquer his very rich and powerful neighbor the Kingdom of Qi.

As a result, there is the famous Chinese saying: “Do not ask the origin of a hero!”

Therefore, China shall recruit foreign talents from other countries. Its 1000 talents plan shall just be a beginning. It must be extended to recruiting business, industrial and other talents. Giving Musk green cards is a good beginning.

Now, Western countries want China to give foreign businessmen free access to China. They are playing into China’s hands to facilitate their economic talents and funds moving into China. China shall certainly welcome foreign talents and funds. Chinese leaders shall respect foreign talents, often meet them to listen to their advices. Successful foreign businessmen shall be admitted into China’s NPC and CPPCC to take part in China’s politics.

In this way, foreign talents and funds will gradually be assimilated and turned into Chinese ones.

Comment by Chan Kai Yee on SCMP’s report, full text of which can be viewed at

EU’s Vestager tells China it is time to deliver on WTO reform

FILE PHOTO: European Competition Commissioner Margrethe Vestager attends the third annual tech conference “Inno Generation” organized by French investment bank Bpifrance at AccorHotels Arena in Paris, France, October 12, 2017. Picture taken October 12, 2017. REUTERS/Charles Platiau/File Photo

HAMBURG, Germany (Reuters) – European Competition Commissioner Margrethe Vestager urged China on Tuesday to work with the EU on reforming the World Trade Organisation (WTO), saying global support for free trade would erode if rules were not brought up to date.

“We need to do more, we need to make it happen, the reform of the WTO,” Vestager told a conference in Hamburg attended by Chinese officials including Vice Premier Liu He.

“Not just by discussing the easier issues, but making real progress on bringing rules up to date so global trade is fair as well as free,” Vestager added.

In July, the EU and China agreed to set up a joint working group to discuss WTO reform.

Reporting by Noah Barkin; Editing by Michelle Martin

Source: Reuters “EU’s Vestager tells China it is time to deliver on WTO reform”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.

Germany’s Schroeder warns against demonizing China

Noah Barkin November 16, 2018

BERLIN (Reuters) – Weighing into Germany’s debate about its ties with China, former chancellor Gerhard Schroeder warned Berlin against demonizing Beijing, saying the two economic powers should work more closely together in the face of Donald Trump’s trade threats.

Known for his close ties to Russia, Schroeder is also a long-time advocate of a closer relationship with China. He visited Beijing frequently as chancellor, championed its entry into the WTO and controversially pressed the EU to lift an arms embargo it imposed after China’s Tiananmen Square crackdown.

Speaking to Reuters in his office overlooking the Russian embassy on Unter den Linden avenue in Berlin, Schroeder pushed back against a wave of scepticism towards China sweeping across western capitals.

“We need to think about who our allies are, who has similar interests. And of course I think about China,” said Schroeder, whose staunch opposition to the looming U.S. invasion of Iraq helped secure his re-election in 2002.

“Those countries that are affected by conflicts emanating from the United States will have to get closer. We can’t become part of an American trade war with China.”

Despite booming business for German companies in China, industry here has been unsettled by what it sees as growing state control over the economy under President Xi Jinping and unfair competition from Chinese rivals.

Concern about Chinese takeovers in Europe is rising. Germany is soon expected to lower the threshold at which it can vet foreign investments. In Brussels, EU member states are finalizing an agreement to ensure closer scrutiny of such deals.

Schroeder questioned that approach, saying Chinese investors were preferable to American “locusts”, a term coined by his party colleague Franz Muentefering to describe U.S. private equity firms and activist hedge funds.

He rejected the exclusion of Chinese firms like Huawei from building Germany’s next-generation mobile networks. The United States and Australia have introduced such bans on security grounds, and some in Berlin are pushing for similar action here.


Schroeder, 74, enacted reforms credited with ending Germany’s economic malaise in the early 2000s. But the reforms divided his Social Democrats, where he is now a controversial figure, in part due to his closeness to Russian President Vladimir Putin.

Within months of his defeat to Angela Merkel, he took a job as chairman of Nord Stream AG, a consortium led by Russian state-owned gas giant Gazprom. Last year he was denounced by SPD colleagues when he became chairman of Russia’s biggest oil producer Rosneft.

Still, his views on China and Russia are shared by some members of his party and pockets of the German political establishment.

Asked about detentions of China’s Uighur minority, Schroeder echoed the language of Chinese officials who have described eye-witness reports of camps as “gossip”.

“I’m not sure. I’m very cautious about this discussion because I don’t have any information,” Schroeder said, rejecting the idea of sanctions against China in response to the camps, an idea being floated in Washington.

“I don’t think much of a values-based foreign policy,” Schroeder said. “Our interests should drive our foreign policy.”

Reporting by Noah Barkin, Editing by William Maclean

Source: Reuters “Germany’s Schroeder warns against demonizing China”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.

Ahead of import fair, EU calls for concrete opening steps from China

Ben Blanchard, John Ruwitch November 1, 2018

BEIJING/SHANGHAI (Reuters) – The European Union on Thursday called for China to take concrete steps to further open its market to foreign firms and provide a level playing field, saying it would not sign up to any political statement at next week’s major import fair in Shanghai.

aaaThe EU’s statement comes on the eve of a trade expo that Beijing hopes to use to signal its willingness to narrow trade deficits and assuage outside concern about its trade practices.

Critics see the China International Import Expo, or CIIE, as an ill-conceived event that is less about business and more about political posturing amid trade tensions between China and the United States.

The EU has many of the same complaints as the United States when it comes to Chinese trade practices and the treatment of foreign firms.

“For us, as one of China’s most important trading partners, success will be measured by the timely, concrete and systemic measures that China implements,” the EU said.

“These measures should go beyond tariff adjustments and aim to address the many long-standing trade and investment concerns. Our expectation is a clear-cut statement by the Chinese government which lays out details and timelines for such measures,” it added.

“As it is a country-specific initiative that focuses on imports into/opening-up the Chinese market, we would not endorse any joint political CIIE statement.”

Underscoring European concerns, a new strategy paper from Germany’s influential BDI industry federation calls on firms to reduce their dependence on the Chinese market, according to a draft seen by Reuters, in a sign of rising concern over Beijing’s state-driven economic model.

Also on Thursday, Germany and France urged Beijing to do more to address concerns about the business environment through “concrete and systematic measures”.

In a rare joint op-ed in the business magazine Caixin, the German and French ambassadors to China said European businesses should have the same opportunities in China as Chinese industries have in Europe.

French Ambassador Jean-Maurice Ripert and German Ambassador Clemens von Goetze said the expo was timely.

“French and German companies are looking forward to China demonstrating that it will not waver and will deepen its opening-up and reform policy in order to create a level playing field for foreign businesses in China,” their article said.

Western governments and businesses have long complained about discriminatory Chinese policies and market access restrictions.

“International businesses operating in China are awaiting a more holistic reform agenda to increase international investment and resolve the existing challenges,” the op-ed said. “We encourage China to address these issues through concrete and systematic measures that go beyond tariff adjustments.”

China should introduce quicker, scientifically-based procedures for agricultural products (SPS), abolish all joint venture requirements, ensure that implementation of cybersecurity legislation does not create barriers to business or discriminatory practices, and better protect intellectual property rights, it said.

But more also needs to be done, giving European companies the same opportunities in China that Chinese firms enjoy in Europe, they added.

“The Shanghai expo comes at just the right time. Forty years after their inception, China should give the reform and opening-up policies fresh impetus and create new political and economic momentum for foreign business,” they wrote.

(This version of the story has been refiled to add dropped word “to” in first paragraph)

Additional reporting by Michael Martina in Beijing; Editing by Kim Coghill & Simon Cameron-Moore

Source: Reuters “Ahead of import fair, EU calls for concrete opening steps from China”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.

Trump’s Missile Treaty Pullout Will Push EU Closer to China

Trump’s trade and NATO disputes with EU have already made EU quite unhappy and thus made it possible for China to form a united front with EU against the US

Now Reuters says in its report “Trump’s missile treaty pullout could escalate tension with China” on October 23 that Trump threatens to unilaterally withdraw from the Intermediate-Range Nuclear Forces Treaty between the US and Russia in order to deploy intermediate-range missiles against China. It believes that the move will make China unhappy.

As a matter of fact, it will be a stupid move. US diplomatic blunders have pushed Russia and the Philippines and been putting Japan into China’s arms. Will the US push EU into China’s arms as the treaty is concluded for Europe’s defense?

Is the US really seeking isolation?

In fact, even if the US is able to develop and deploy such missiles, where can it deploy them? South Korea? The deployment of THAAD has already caused lots of trouble to it. Japan or the Philippines? They are both seeking good relations with China. Australia? It will make Australia within the range of not only Chinese missiles but even rocket artillery.

Reuters says in the report that the withdrawal from the treaty will make China unhappy. I don’t think so. I believe China will be happy as the US is helping China to form a united front against the US with EU though China opposes it in the open. China, in fact, is laughing in its sleeves.

Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at

Chinese premier tells European, Asian leaders Beijing will continue reform

October 20, 2018

BEIJING (Reuters) – Chinese Premier Li Keqiang said at a meeting between Asian and European leaders in Brussels that China will continue to open up its economy, push forward reforms and improve its business environment, the official Xinhua News Agency reported on Saturday.

Li said Asian and European countries need to safeguard multilateralism and the rules-based free trade system, Xinhua reported.

China is in the midst of a worsening trade war with the United States, with U.S. President Donald Trump demanding sweeping changes to China’s intellectual property, industrial subsidy and trade policies.

Brussels shares Washington’s concern about China’s trade practices, but differs with the U.S. on how to force Chinese reform.

Li said that China’s economy is healthy but is facing challenges including changes to the external environment.

He said China will continue to move toward a market-oriented exchange rate, will not engage in competitive devaluation, and that the yuan can remain basically stable at a reasonable level.

The Chinese premier said he supports improvements to the rules of the World Trade Organization (WTO), but that changes must be carried out on the basis of the WTO’s existing rules and the interests of developing countries must be respected, Xinhua reported.

Reporting by Elias Glenn and Jenny Su; Editing by Sam Holmes

Source: Reuters “Chinese premier tells European, Asian leaders Beijing will continue reform”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.