China expanding dominance by increasing defense spending and encroaching into neighboring economic zones

Revelations 6:3-4 “ when he opened the second seal, I heard the second living creature say, “Come!” 4 And out came another horse, bright red. Its rider was permitted to take peace from the earth, so that people should slay one another, and he was given a great sword.

Important Takeaways:

  • All eyes on Ukraine, China flexes in South China Sea
  • Beijing warns regional states against ‘external interference’ in disputes while announcing military drills in Vietnam’s claimed EEZ
  • Beijing announced that it will increase its defense spending by 7.1%
  • This brings official Chinese defense spending to $229 billion, a whopping figure dwarfing all other regional rivals’ defense budgets combined and second only to the United States globally.
  • Meanwhile, there are growing indications that China has stepped up… deep-sea exploration activities across the South China Sea and well into the EEZ of neighboring states, in a clear bid to lay claim to and dominate precious resources in the area.
  • Taiwan, which has been repeatedly threatened with a potential military invasion by top Chinese leaders, has been on high-alert mode.

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Beijing concerned about civilian casualties but vowed to continue normal trade with Russia

Revelations 6:3-4 “ when he opened the second seal, I heard the second living creature say, “Come!” 4 And out came another horse, bright red. Its rider was permitted to take peace from the earth, so that people should slay one another, and he was given a great sword.

Important Takeaways:

  • China considers buying stakes in Russian energy, commodity firms
  • China is considering buying or increasing stakes in Russian energy and commodities companies, such as gas giant Gazprom PJSC and aluminum producer United Co. Rusal International PJSC, according to people familiar with the matter.
  • Any deal would be to bolster China’s imports as it intensifies its focus on energy and food security — not as a show of support for Russia’s invasion in Ukraine — the people said.
  • Worried about the impact surging prices will have on the economy, China’s top government officials issued orders to prioritize commodities supply security, Bloomberg reported last week.

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Steve Gray: Beijing will be Primary Beneficiary of Russia Sanctions

Matthew 24:6 “And you will hear of wars and rumors of wars. See that you are not alarmed, for this must take place, but the end is not yet.”

Important Takeaways:

  • China is ‘big winner’ of Russia-Ukraine war, former FBI agent who worked in China warns
  • “They’ll be the primary beneficiary of the sanctions against Russia, the yen will benefit from the decline of the ruble, and they have been given a case study of what the world’s response would look like if they were to invade Taiwan.”
  • “It would not be surprising at all to learn that this is shaping up exactly as China planned,” Gray, who spent 10 years working as a supervisory special agent focused on China and North Korea, added.
  • “From my experience as an FBI supervisory special agent working on China and North Korea, I know that the Chinese Communist Party is perpetually and patiently planning to take our place as global leaders,” he warned. “As Americans, we need to be cognizant of this threat.”
  • Although European countries have joined the U.S. in imposing hefty sanctions on Russia amid the Ukraine war, they have mostly spared Russia’s energy industry of such economic warfare, because much of Europe is dependent on Russia for energy.

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Taiwan and China are gauging America’s response in the Ukraine crisis

Matthew 24:6 “And you will hear of wars and rumors of wars. See that you are not alarmed, for this must take place, but the end is not yet.”

Important Takeaways:

  • Taiwan watching Ukraine crisis with ‘concern and anxiety,’ says top diplomat in U.S.
  • Taipei’s representative in Washington, Bi-khim Hsiao, said “Like everyone else in the world, we are watching the situation with much concern and anxiety,” she said. “We certainly hope that the situation can be resolved peacefully through diplomatic means.
  • Taiwan’s president, Tsai Ing-wen, said last month that her nation “empathized” with the plight of Ukrainians because of the military threat Taiwan faces from its powerful larger neighbor. She ordered the creation of a task force to study how tensions between Russia and Ukraine could affect Taiwan’s own long-running conflict with Beijing.
  • Former U.S. officials say China will gauge the U.S. response to Russia as a possible guide to how Washington might counter a crisis over Taiwan.
  • Hsiao said China has tried to wear down Taipei through pressure tactics, bullying and disinformation that stops short of outright military action, in what her government calls “gray zone warfare.”
  • “The Chinese have also been launching cyberattacks, disinformation, cognitive and psychological warfare on the people of Taiwan, aimed at weakening our resolve to our self-defense and also trying to sow divisions within our society,” Hsiao said.
  • Governments that have refused to sever ties with Taiwan or that have criticized Beijing have faced economic retaliation from China, including those of Lithuania and Australia, she said. Democratic countries need to rally, she said, and show China that Beijing’s “coercion” will not succeed.

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China uses Olympics to share future of undisputed power

Matthew 24:6 You will hear of wars and rumors of wars, but see to it that you are not alarmed. Such things must happen, but the end is still to come.

Important Takeaways:

  • As Olympics begin, Beijing projects ‘shared future’ of undisputed Chinese power
  • China’s motto of coming “together for a shared future” during the hardships of pandemic — an echo of President Xi Jinping’s political philosophy of building a “community with a shared future for mankind”
  • [Narrative] has been countered by U.S.-led diplomatic boycotts that seek to hold the Chinese Communist Party accountable for human rights abuses, military aggression and ascendant nationalism during Xi’s rule
  • Coronavirus-constraining “closed loop” of designated buses and hotels has made it impossible for most Beijing residents to take part in the events.
  • China itself has used the Olympics to promote its political vision; underscore its claims of ownership over Taiwan
  • Xinhua News Agency wrote, “Ensuring the Beijing Winter Olympics were held on schedule demonstrates the significant advantages of Socialism with Chinese characteristics and is a bold declaration that no force can stop the Chinese people from realizing their dreams.”

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Beijing’s agents ‘more brazen, more dangerous’ than ever before, bureau head says

Matthew 24:6 You will hear of wars and rumors of wars, but see to it that you are not alarmed. Such things must happen, but the end is still to come.

Important Takeaways:

  • FBI chief Wray: China engaged in large-scale hacking operations targeting U.S. tech
  • Mr. Wray argued Beijing is using its global reach and market power “to steal and threaten, rather than to cooperate and build.”
  • “That theft, those threats, are happening right here in America, literally every day,” he said.
  • The threat is not just economic, as it also poses a challenge to American freedom, the FBI chief said.
  • He noted that there are more than 2,000 FBI investigations focused on Chinese efforts to steal U.S. information and technology
  • The Chinese government steals staggering volumes of information and causes deep, job-destroying damage across a wide range of industries, so much so that we’re constantly opening new cases to counter their intelligence operations about every 12 hours.”

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Lithuanian diplomats leave China as relations sour over Taiwan

By Yew Lun Tian and Andrius Sytas

BEIJING/VILNIUS (Reuters) -Lithuania’s diplomatic delegation to China left the country on Wednesday in a hastily arranged exit, diplomatic sources said, as relations soured further over Taiwan, which opened a de facto embassy in Vilnius last month.

Beijing, which has stepped up pressure on countries to sever relations with the island, downgraded diplomatic ties with Lithuania in November after Taiwan opened a representative office in the Baltic state’s capital.

Lithuanian authorities said on Wednesday they had summoned their top diplomat back from China for “consultations” and that the embassy would operate remotely for the time being.

A diplomatic source told Reuters a group of 19 people comprising embassy personnel and dependents left Beijing en route to Paris. Another diplomatic source familiar with the situation called their departure a response to “intimidation”.

China’s foreign ministry did not immediately respond to a request for comment.

Like most countries, Lithuania – a European Union member state – has formal relations with China and not self-ruled and democratically governed Taiwan, which Beijing views as its territory.

Speaking to reporters in Vilnius, Foreign Minister Gabrielius Landsbergis said there was uncertainty over the legal status of Lithuanian diplomats in China before their departure.

He told Reuters earlier that China had demanded Lithuania change the status of its Beijing embassy into a lesser charge d’affaires office. This would have mirrored the change China made to its own legation in Vilnius in response to the opening of Lithuania’s Taipei office..

Taiwan’s foreign ministry voiced its “highest respect to the Lithuanian government and its diplomatic decision-making” on Wednesday, and called on Taiwanese companies to support closer economic ties with the small Baltic republic.

Lithuania’s ruling coalition agreed a year ago to back what it described as “those fighting for freedom” in Taiwan.

On Wednesday the Lithuanian embassy building in a gated Beijing compound appeared empty. No one answered a knock on the door or telephone call. A photograph taken a day earlier showed two bouquets of flowers at the front door.

Lithuania had recalled its ambassador in September, several weeks after China demanded the envoy’s withdrawal and said it was recalling its envoy from Vilnius.

The United States has spoken out in support of Lithuania during its row with China, adding to U.S.-Chinese tensions.

Lithuania’s foreign ministry said it was ready to continue a dialogue with China and restore the functions of the embassy once a mutually beneficial agreement has been reached.

(Reporting by Yew Lun Tian and Andrius Sytas; Writing by Tony Munroe; Editing by David Goodman, Andrew Heavens and Mark Heinrich)

China and Laos open $6 billion high-speed rail link

VIENTIANE (Reuters) – A $6 billion high-speed rail line connecting China with its Southeast Asian neighbor Laos opened on Friday, a milestone in Beijing’s ambitious Belt and Road infrastructure plans.

Chinese President Xi Jinping and Lao counterpart Thongloun Sisoulith attended a virtual ceremony to mark the maiden voyages on the line, which stretches from the southwestern Chinese city of Kunming to the Laotian capital Vientiane.

China, which holds a 70% stake in the joint venture project signed in 2015, hopes the 1,000-km (621.37-mile) line will eventually expand through Thailand and Malaysia to Singapore.

In a video meeting between the two leaders earlier on Friday, Xi said the countries stood at “a new historical starting point”.

“China is willing to strengthen strategic communication with Laos, promote the high-quality development of the Belt and Road Initiative, and continue to build an unbreakable China-Laos community with a shared future,” he said in comments published by China’s state broadcaster CCTV.

Economists have warned that the rail project could make it difficult for communist Laos, one of Asia’s poorest nations, to repay external debt, much of it owed to China.

Laos state news agency KPL said on Thursday the project was part of the government’s strategy to convert Laos “from a landlocked country to a land-linked one”.

(Reporting by Phoonsab Thevongsa and Ella Cao; Writing by John Geddie; Editing by Mark Heinrich)

 

Chinese stock up on staples after government ‘just in case’ advice prompts confusion

By Dominique Patton and Martin Quin Pollard

BEIJING (Reuters) – Beijing shoppers stocked up on cabbage, rice and flour for the winter on Wednesday, after the government urged people to keep stores of basic goods in case of emergencies, though it assured them there were sufficient supplies after some panic-buying.

The Ministry of Commerce on Monday published a seasonal notice encouraging authorities to do a good job in ensuring food supplies and stable prices ahead of the winter, following a recent spike in the prices of vegetables and a growing outbreak of COVID-19.

But the ministry’s advice to households to also stock up on daily necessities in case of emergencies prompted confusion, sending some rushing to supermarkets for extra supplies of cooking oil and rice.

China’s cabinet late on Wednesday said it would guarantee supplies of daily necessities, including meat and vegetables, and stabilize prices, state media reported.

China’s instructions also pushed up domestic edible oil futures as well as Malaysian palm oil.

“It’s going to be a cold winter, we want to make sure we have enough to eat,” said one woman loading rice on to a bicycle outside a supermarket in central Beijing.

A long line formed at the supermarket’s cabbage stall, as people bought supplies of the vegetable that is traditionally stored at home and consumed over the winter months.

But many residents said there was no need to buy more food than normal.

“Where could I stockpile vegetables at home? I get enough for my daily needs,” said a Beijing retiree surnamed Shi leaving another Beijing supermarket.

Others said they did not expect any shortages, particularly in the capital.

Government advice to residents to buy supplies ahead of the winter is issued every year, said Ma Wenfeng, an analyst at A.G. Holdings Agricultural Consulting.

“It is necessary because there is often heavy snowfall in the winter … and it seems there will be some uncertainty about the weather conditions this year. So I think this is quite a normal matter,” he said.

China’s National Meteorological Center is predicting a plunge in temperatures over the weekend in the northwest, southwest and most central and eastern regions.

China’s state broadcaster CCTV reported on Tuesday that there had been some “over-interpretation” of the ministry’s advice.

“Currently, the supply of daily necessities in various places is sufficient, and the supply should be fully guaranteed,” it quoted Zhu Xiaoliang, director of the ministry’s Department of Consumption Promotion, as saying.

Some cities including Tianjin in the north and Wuhan further south have released winter vegetables from stockpiles for sale at lower prices in supermarkets.

But some panic-buying appeared to continue on Wednesday, with several people complaining online of empty supermarket shelves, attributed largely to a growing COVID-19 outbreak.

China reported its highest number of new locally transmitted COVID-19 cases in almost three months on Wednesday, including nine new infections in Beijing, the biggest one-day increase in the capital this year.

“Even bulk rice has been stripped off (shelves),” said a resident in the southern city of Nanjing, writing on China’s microblog Weibo.

“There is uncertainty about the occurrence of the COVID-19 outbreaks. Once an outbreak occurs, people’s livelihoods will be affected. That’s why people are stocking up on winter supplies to avoid the impact of COVID-19,” said Ma at A.G. Holdings.

Chinese authorities typically respond to COVID-19 cases by locking down entire communities where they occur, restricting movement in and out of affected areas.

(Reporting by Dominique Patton and Martin Quin Pollard. Additional reporting by Beijing Newsroom. Editing by Karishma Singh, Christian Schmollinger and Nick Macfie)

U.S. envoy Sullivan to meet China’s top diplomat Yang amid Taiwan tensions

BEIJING (Reuters) -U.S. President Joe Biden’s national security adviser will hold talks with China’s top diplomat in Switzerland on Tuesday and Wednesday, the South China Morning Post said, at a time of rising tension over several issues including Taiwan.

“They aim to rebuild communication channels and implement consensus reached between presidents Xi Jinping and Joe Biden,” the newspaper reported on Tuesday, citing an official familiar with the arrangements for the meeting between Jake Sullivan and Yang Jiechi.

Both the White House and the Chinese foreign ministry did not immediately respond to a Reuters request for comment.

Ties between China and the United States deteriorated sharply under former U.S. President Donald Trump, and the Biden administration has maintained pressure on China on a range of issues from Hong Kong and the Xinjiang region to the origins of COVID-19.

China has also been angered by increased U.S. support for Taiwan, believing the United States is colluding with forces there seeking the island’s formal independence, a red line for Beijing.

“Our commitment to Taiwan is rock solid and contributes to the maintenance of peace and stability across the Taiwan Strait and within the region,” White House spokeswoman Jen Psaki told reporters on Monday.

“We have been clear privately and publicly about our concern about the PRC’s (People’s Republic of China) pressure and coercion toward Taiwan, and we will continue to watch the situation very closely,” she said.

Trade tensions are also at the top of the U.S.-China agenda, with U.S. Trade Representative Katherine Tai traveling to Paris Monday to participate in Organization for Economic Co-operation and Development meetings later this week.

On Monday, the USTR unveiled the results of a months-long “top-to-bottom” review of China trade policy, pledging to hold “frank” talks with Beijing about its failure to keep promises made in Trump’s trade deal and end harmful industrial policies.

The Global Times, a tabloid published by the ruling Communist Party’s official People’s Daily, said in a commentary China was willing to build mutually beneficial trade with the United States but would not make concessions on principle and was not afraid of a drawn-out contest.

“The China-U.S. trade war has lasted for more than three-and-a-half years. Instead of being weakened, China’s economy has taken a step forward in comparison with the scale of the U.S.,” it said.

The meetings this week will be yet another round of in-person talks between officials from the two powers since Biden took office, with little in the way of concrete progress in the earlier sessions.

In late July, Deputy Secretary of State Wendy Sherman, the second-ranking U.S. diplomat, held face-to-face meetings with Xie Feng, a Chinese vice foreign minister, in the Chinese port city of Tianjin.

No specific outcomes were agreed and the prospect of a meeting between Biden and Xi was not discussed, senior U.S. administration officials said at the time.

In March, during high-level talks in Alaska, Chinese officials including Yang Jiechi railed against the state of U.S. democracy, while U.S. officials accused the Chinese delegation of grandstanding.

(Reporting by Ryan Woo in Beijing and Aakriti Bhalla in Bengaluru and Steve Holland in Washington; Editing by Kim Coghill, Robert Birsel, Heather Timmons and Steve Orlofsky)