China profiting from EU climate policy on cars, says German EPP chief


China is profiting from the European Union’s climate policy, according to a German lawmaker heading a centre-right European party who spoke out in favour of the combustion engine.

It is clear “that the ban on the combustion engine was a serious industrial policy mistake from which China is benefiting,” the head of the European People’s Party (EPP) group in the European Parliament, Manfred Weber, told the Funke media group newspapers.

We want to “remedy this after the European elections,” Weber said in reports published on Sunday.

He was referring to a decision by EU members last year to ban new cars with combustion engines, despite efforts by Berlin to block the move. Germany is a major producer of cars with combustion engines and its auto industry is a key sector in the German economy.

European Commission President Ursula von der Leyen recently said the combustion engine decision would be reviewed in 2026.

The Green Deal, as EU climate policy measures are known, should not become a “China Deal,” said Weber, noting the growing number of electric carmakers from China entering the European market.

German carmakers including Volkswagen and BMW are lagging behind their Chinese rivals in terms of e-car sales.

Germans are only slowly embracing e-cars, Federal Motor Transport Authority data shows, with nearly 1.41 million purely battery-powered electric vehicles (BEVs) registered on January 1 in Germany, some one in 35 on German roads.

Growth in electric car sales could slow in 2024 since the cancellation of state subsidies. At just under 50,000, new BEV registrations in January and February were well below the average figures for the previous year.

However the governing coalition, which includes the Green Party, hopes to have 15 million electric cars on the road by 2030.



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Japan confirms experts met in China to ease concerns over discharge of treated radioactive water


TOKYO (AP) — Japan said Sunday its experts have held talks with their Chinese counterparts to try to assuage Beijing’s concerns over the discharge of treated radioactive wastewater from the wrecked Fukushima Daiichi nuclear power plant into the sea.

The discharges have been opposed by fishing groups and neighboring countries especially China, which banned all imports of Japanese seafood. China’s move has largely affected Japanese scallop growers and exporters to China.

During the talks held Saturday in the northeastern Chinese city of Dalian, Japanese officials provided “science-based” explanation of how the discharges have been safely carried out as planned, according to the Japanese Foreign Ministry.

A 2011 earthquake and tsunami damaged the Fukushima plant’ s power supply and reactor cooling functions, triggering meltdowns of three reactors and causing large amounts of radioactive wastewater to accumulate. After more than a decade of storage in tanks taking up much space on the complex, the plant began discharging the water after treating it at least once and diluting it with seawater on Aug. 24, starting a process that’s expected to take decades.

Japanese Prime Minister Fumio Kishida and Chinese President Xi Jinping at their summit meeting in November agreed to hold scientific talks by experts, and the countries have since held a number of informal meetings. Sunday’s statement from the Japanese Foreign Ministry was its first public acknowledgement of the talks.

The experts exchanged views on “technical matters” involving the discharges, the ministry official said on condition of anonymity due to the sensitivity of the issue. While stressing the importance of transparency, the official declined to give any other details, including what the Chinese side said and whether their differences have been narrowed.

The meeting comes just after the International Atomic Energy Agency chief Rafael Mariano Rafael’s visit to the plant in mid-March confirming that the ongoing discharges have been safely carried out as planned.



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Philippines Revamps Maritime Security Offices Amid China Spat


(Bloomberg) — Philippine President Ferdinand Marcos Jr. reorganized the responsibilities of the central agency for maritime security policies as South China Sea tensions with Beijing escalate.

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Marcos directed the National Maritime Council to formulate policies and coordinate with government agencies on all issues affecting sea security and domain awareness, according to an order dated March 25 and released Sunday.

The council will be led by Marcos’ Executive Secretary Lucas Bersamin, with defense, energy and foreign affairs ministers as members. Others include the country’s national security adviser and solicitor general. The council is now mandated to meet quarterly from twice a year.

Marcos also formed a presidential office for maritime concerns.

China’s Water Cannons Test US-Philippines Pact in Sea Feud

The Philippines has been asserting its South China Sea rights, heightening a spat with China which claims almost the entire waterway despite a 2016 ruling favoring Manila. Marcos also recently vowed “deliberate” countermeasures against “dangerous attacks” by Chinese ships on Philippine vessels.

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©2024 Bloomberg L.P.



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Migrant workers who helped build modern China have scant or no pensions, and can’t retire


BEIJING (AP) — At 53, Guan Junling is too old to get hired at factories anymore. But for migrant workers like her, not working is not an option.

For decades, they have come from farming villages to find work in the cities. Toiling in sweatshops and building apartment complexes they could never afford to live in, they played a vital role in China’s transformation into an economic powerhouse.

As they grow older, the first generation of migrant workers is struggling to find jobs in a slowing economy. Many are financially strapped, so they have to keep looking.

“There is no such thing as a ‘retirement’ or ‘pensions’ for rural people. You can only rely on yourself and work,” Guan said. “When can you stop working? It’s really not until you have to lie in bed and you can’t do anything.”

She now relies on housecleaning gigs, working long days to squirrel away a little money in case of a health emergency. Migrant workers can get subsidized health care in their hometowns, but they have little or no coverage elsewhere. If Guan needs to go to hospital in Beijing, she has to pay out of pocket.

As China’s population ages, so are its migrant workers. About 85 million were over 50 in 2022, the latest year for which data is available, accounting for 29% of all migrant workers and up from 15% a decade earlier. With limited or no pensions and health insurance, they need to keep working.

About 75% said they would work beyond the age of 60 in a questionnaire distributed to 2,500 first-generation migrant workers between 2018 to 2022, according to Qiu Fengxian, a scholar on rural sociology who described her research in a talk last year. The first-generation refers to those born in the 1970s or earlier.

Older workers are being hit by a double whammy. Jobs have dried up in construction due to a downturn in the real estate market and in factories because of automation and the slowing economy. Age discrimination is common, so jobs tend to go to younger people.

“For young people, of course, you can still find a job, positions are available, though the wage is not high enough,” said Zhang Chenggang of Beijing’s Capital University of Economics and Business, where he directs a center researching new forms of employment.

“But for older migrant workers, there simply are no positions,” said Zhang, who conducted field studies at four labor markets across China late last year. “Now, the problem is that no matter how low the wage is, as long as someone pays, you will take the job.”

Some job recruiters contacted by AP said older workers don’t work well or have underlying illnesses. Others declined to answer and hung up.

Many are turning to temporary work. Zhang Zixing was looking for gigs on a cold winter day late last year at a sprawling outdoor labor market on the outskirts of Beijing.

He said he was fired from a job delivering packages because of his age about three years ago, when he reached 55. In December, he was earning 260 yuan (about $35) a day installing cables at construction sites.

Zhang Quanshou, a village official in Henan province and a delegate to China’s National People’s Congress, said some older migrant workers are just looking for work near their hometowns, while others still head to larger cities.

“Some older migrant workers are finding temporary jobs, so it is important to build the temporary job market and provide a better platform for such services,” Zhang, the Communist Party secretary of the village, said in an emailed response to questions during a recent annual meeting of the Congress.

Guan, who comes from a rice-farming region in the north, worked on a clothing factory assembly line until she was laid off when she was in her 40s. She then worked various jobs in different cities, winding up in Beijing in 2018.

She works seven days a week, partly because she’s afraid labor agencies won’t call again if she turns an offer down.

Over February’s Lunar New Year holiday, when migrant workers traditionally go home to visit their families, she stayed in Beijing as a caretaker for an elderly woman, because the woman needed help and she needed the money.

“People either want someone who’s educated or young, and I don’t meet either of those requirements,” said Guan, who dropped out after middle school because her parents had only enough money to educate their son. “But then I think, regardless of how other people look at me, I have to survive.”

Guan worries jobs will be even harder to find when she reaches 55. The retirement age for women in China is 50 or 55, depending on the company and type of work. For men, it is 60.

Lu Guoquan, a trade union official, has proposed relaxing age limits for jobs, judging workers by their physical condition instead of their age and making it easier for older people to find work through labor markets and online platforms.

“A large number of farmers have entered cities, making an important contribution to the modernization of our country,” said his proposal, made to an advisory body during the recent national congress and seen by the AP.

As workers grow older, “they are gradually becoming a relatively vulnerable group in the labor market and face a number of thresholds and problems in continuing to work,” it said.

Lu, director of the general office of the All-China Federation of Trade Unions, declined an interview request.

Duan Shuangzhu has spent 25 years collecting trash in one Beijing neighborhood after giving up a life of raising sheep and cows in north China’s Shanxi province when he was in his 40s. He gets up at 3:30 a.m. seven days a week to make his rounds. For that, he earns 3,300 yuan ($460) a month and has a basement room to live in.

Duan’s wife stayed on the farm, where she looks after their grandchildren. Duan has managed to save money for himself, his children and his grandchildren, but never paid into a pension system, directing what little he earns to his family.

That fits the pattern Qiu found in her research, which she published in a book last year. Older migrant workers moved to the cities to improve the lives of their children and other relatives, not themselves, she found. Most have limited or no savings, and few have climbed the economic ladder. They hoped their children would, but most ended up as migrant workers, too.

Most migrant workers’ earnings were spent on their children’s marriages, homes and education, Qiu said in her talk. “Basically, they did not begin working for themselves and planning for their own late years until the age of 55.”

Duan, at 68, has no plans to quit.

“As long as I can work every day, it’s enough to survive,” he said, standing next to a set of community rubbish bins, color-coded for recycling. “I didn’t grow up in a wealthy family — just filling my stomach each day is enough for me.”

___

Associated Press researcher Wanqing Chen contributed to this story.



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Dalio Says China Must Fix Debt Problems or Face ‘Lost Decade’


(Bloomberg) — Ray Dalio warned that China should cut its debt and ease monetary policy or face “a lost decade.”

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The billionaire founder of Bridgewater Associates said in a nearly 5,000-word post on LinkedIn that he agrees with Chinese President Xi Jinping’s warning of a 100-year period of unprecedented change and recommends the country take steps to manage its debt problem.

The hedge fund titan was referring to the Chinese Communist Party’s political slogan of “great changes unseen in a century,” used to describe the future trajectory of international order. While the phrase was first used by Chinese academics following the 2008 recession, it was adopted by the party in 2017 and since used in diplomatic contexts.

“When there is a lot of debt and big wealth gaps at the same time as there are great domestic and international power conflicts, and/or great disruptive changes in nature, and great changes in technology, there is an increased likelihood of a ‘100-year big storm,’” he wrote.

He added that China-US tensions are causing foreign investors to diversify or leave China for fear of being discriminated against. That’s causing China to face difficulties obtaining investments, and without a reconciliation of economic and cultural clashes, the chance of a war in the next 10 years is high.

Dalio has a long history of involvement with Chinese officials and has expressed admiration for some of Beijing’s economic policies, while also building up his business there. He’s warned about the risks of conflict between US and China for years.

To manage its debt problem, Dalio recommends that China engineer a deleveraging and an easing of monetary policy at the same time, but acknowledges that such a move would be difficult and politically dangerous as it would lead to big changes in wealth levels.

“No one knows how far the pendulum will swing back toward the more Maoist/Marxist ways of doing things,” Dalio wrote. “The impediment is that communicating more directly is not the Chinese leadership’s traditional way of doing things, which, as China goes back toward the more traditional ways of doing things, is understandable.”

–With assistance from Jing Li.

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China built a mock-up of key area in Taiwan’s capital city at a desert training site, satellite images show


  • Satellite images show China’s mock-up of Taiwan’s presidential office at a desert training site.

  • It is not the first time China has built such mock ups, which indicate a readiness to use force.

  • China has also built mock ups of US warships in the desert for apparent target practice.

Out in the desert at a military training site, China has built a mock-up of a key area of Taiwan’s capital city where the presidential office and other government buildings are located, satellite images show.

The mock-up, like others before it, seems to indicate China’s intentions and focus, though its use is uncertain.

China often engages in aggressive and coercive behavior that alarms its neighbors, is pursuing a significant military build-up and modernization effort, and has never renounced the use of force as an option for achieving unification with Taiwan.

Images of the mock target, located in the desert in the Alxa League area of northern China’s Inner Mongolia, began circulating on social media earlier this week. Taiwanese defense analyst Joseph Wen posted the satellite image, as well as a map comparison of the real area in Taipei, on Monday.

Wen noted that while China had previously created a replica of Taiwan’s president’s office building at another area, specifically Zhurihe, this mock up covered much of the office’s surrounding area and was located at what appeared to be an aerial bombing and gunnery training range.

When compared to an actual map of the area, the mock-up looks relatively realistic, with the roads and the presidential office’s surroundings closely resembling the real place in Taiwan’s capital city, Taipei.

Satellite images provided by Planet Labs to Business Insider show the site, which is still there, has been there since at least December 2022.

A satellite image showing Chinese mock up of Taiwan's presidential office.

Satellite image dated December 2022.Image © Planet Labs PBC

It is unclear though when exactly the mock-up was built, but it’s not the first.

Making Taiwan’s presidential office and US warships in the desert

Back in 2014 and 2015, satellite images showed the other mock-up of Taiwan’s presidential office at Zhurihe, also in Inner Mongolia, and a video broadcast by CCTV in July 2015 captured Chinese troops practicing an assault on the fake building, The Diplomat reported at the time.

The office mock-up was a convincing replica. Imagery from China-based web portals showed troops entering the building conducting some sort of raid.

A general view of the Presidential Office Building in Taipei.

A general view of the Presidential Office Building in Taipei.Walid Berrazeg/SOPA Images/LightRocket via Getty Images

When asked by reporters on Wednesday about the images of the Bo’ai Special Zone mock-up that surfaced this week, Defense Minister Chiu Kuo-cheng said that any country could imitate another’s facilities and area, adding that Taiwan’s military could also conduct military exercises in simulated locations.

Indeed, this kind of training isn’t necessarily unusual, but it nonetheless signals intent.

China has also been documented building mock-ups of US aircraft carriers and other warships at training sites, likely to test and improve its missiles.

Experts have long warned about the increasing stockpiles and capabilities of its Rocket Force and what role those assets would play should the the US and China go to war, be it over Taiwan or for some other reason.

Fresh worries about a Chinese invasion of Taiwan

The images of the mock-up at Alxa League have surfaced at a time of renewed concern about possible Chinese aggression against Taiwan.

Amid China’s assertiveness at sea and in the air, demonstrated by unpredictable military drills, fiery run-ins with Philippine boats, and close calls with US aircraft, there continues to be concern about a potential invasion of Taiwan.

Just last week, US Navy Adm. John Aquilino, the commander of US Indo-Pacific Command, told the US Armed Services House Committee that China was building its military up at a scale not seen since World War II and was on track to be ready to invade Taiwan by 2027.

People watch a video about China's military advancements at the Military Museum in Beijing on March 3, 2024.

People watch a video about China’s military advancements at the Military Museum in Beijing on March 3, 2024.GREG BAKER/AFP via Getty Images

China often employs economic, diplomatic, and militarily aggressive and coercive tactics toward Taiwan, such as pressuring countries that interact with the island or routinely flying fighters and bombers around it, forcing a response.

In response to Taiwan’s election earlier this year, China has turned up the pressure, and ongoing military drills in Taiwan have prompted warnings from China.

Taiwan elected a new president, the Democratic Progressive Party’s Lai Ching-te, the current Vice President, in January. It’s a historic win for the DPP, which has now been in power for three consecutive terms. It was also China’s worst case scenario.

The DPP has navigated a tricky situation since gaining power in 2016, trying to preserve status quo with Beijing while maintaining Taiwan’s autonomy. Though China is generally opposed to the elections, Beijing would have preferred the Kuomintang’s Hou You-ih, who is not pro-Beijing but has an outlook on relations with China that is softer than DPP’s.

Read the original article on Business Insider



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China lifts heavy tariffs on Australian wine as ties improve



HONG KONG — China said Thursday that it will lift tariffs placed on Australian wine over three years ago, in a sign of improving ties between the two countries.

China’s Ministry of Commerce said the decision would take effect Friday.

China imposed tariffs on Australian wine in 2020 during a diplomatic feud over Australia’s support for a global inquiry into the origins of Covid-19. The duties on Australian wine skyrocketed above 200%.

Australian wine producers took a heavy hit from the tariffs, as China was Australia’s top wine export destination.

The Australian government welcomed the decision, saying in a statement that the tariffs were lifted at a “critical time for the Australian wine industry.”

He Yadong, a spokesperson for China’s Ministry of Commerce, said China and Australia are “each other’s important trade partners.”

“We are willing to work with Australia to resolve each other’s concerns through dialogue and consultation and jointly promote the stable and healthy development of bilateral economic and trade relations,” He said.

The trade in 2019, before the tariffs were in place, was worth 1.1 billion Australian dollars ($710 million) a year to the local economy.

Australian Prime Minister Anthony Albanese said the level of trade would most likely increase when restrictions were scrapped.

“We reckon that the resumption of trade, which we think is imminent, will see an even higher amount because that’s what we’ve seen with other products that have been resumed,” he said during a visit to a winery located in Australia’s Hunter Valley wine region on Thursday before the lifting of tariffs was announced.

“China wants good high-quality wine and Australia produces it.”

China imposed a raft of sanctions on Australian goods in 2020 during the most recent nadir in the bilateral relationship. It is estimated that the tariffs cost the Australian economy 20 billion Australian dollars ($13 billion).

The trade barriers were widely regarded as punishment for the previous Australian government passing laws that ban covert foreign interference in domestic politics, for barring Chinese-owned telecommunications giant Huawei from rolling out Australia’s 5G network due to security concerns and for calling for an independent investigation of the Covid-19 pandemic.

China was also angered by Australia’s deepening security ties with the United States, notably the AUKUS agreement that also includes Britain and will provide Australia with submarines powered by U.S. nuclear technology.

Most of the tariffs have since been lifted as the relationship thawed. Relations have steadily improved after the change in the Australian government, with Albanese visiting Beijing last November.

In April, Australia suspended a complaint to the WTO in a bid to reopen the Chinese market to Australian barley, which was one of the products targeted by the tariffs, in what was widely seen as an attempt by the new Australian government to repair relations with Beijing.

The Australian government also halted another WTO dispute with China over sanctions on Australian wine in exchange for China’s review of the tariffs.



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China lifts heavy tariffs on Australian wine as ties improve


BEIJING (AP) — China on Thursday said it will lift tariffs placed on Australian wine over three years ago, in a sign of improving ties between the two countries.

China’s Ministry of Commerce said the decision will take effect Friday.

China imposed tariffs on Australian wine in 2020 during a diplomatic feud over Australia’s support for a global inquiry into the origins of COVID-19. The duties on Australian wine skyrocketed above 200%.

Australian wine producers took a heavy hit from the tariffs, as China was Australia’s top wine export destination.

The Australian government welcomed the decision, saying in a statement that the tariffs were lifted at a “critical time for the Australian wine industry.”

He Yadong, a spokesperson for China’s Ministry of Commerce, said China and Australia are “each other’s important trade partners.”

“We are willing to work with Australia to resolve each other’s concerns through dialogue and consultation and jointly promote the stable and healthy development of bilateral economic and trade relations,” He said.

Trade tariffs have been a hot topic between Beijing and Canberra in recent years after China imposed a raft of sanctions on Australian goods in 2020 during the most recent nadir in the bilateral relationship. It is estimated that the tariffs cost the Australian economy 20 billion Australian dollars ($13 billion).

Most of the tariffs have since been lifted as the relationship thawed.



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China to challenge Biden’s electric vehicle plans at the WTO



BEIJING — China filed a World Trade Organization complaint against the United States on Tuesday over what it says are discriminatory requirements for electric vehicle subsidies.

The Chinese Commerce Ministry did not say what prompted the move. But under a new U.S. rule that took effect Jan. 1, electric car buyers are not eligible for tax credits of $3,750 to $7,500 if critical minerals or other battery components were made by Chinese, Russian, North Korean or Iranian companies. The credits are part of President Joe Biden’s signature climate legislation, named the 2022 Inflation Reduction Act.

A ministry statement did not mention the specific restriction. It said, though, that under the act and its implementing rules, the U.S. had formulated discriminatory subsidy policies for new energy vehicles in the name of responding to climate change. It said the U.S. move excluded Chinese products, distorted fair competition and disrupted the global supply chain for new energy vehicles.

Member countries of the Geneva-based WTO can file complaints about the trade practices of other members and seek relief through a dispute settlement process.

The real-world impact of the case is uncertain. If the United States loses and appeals the ruling, China’s case most likely would go nowhere. That is because the WTO’s Appellate Body, its supreme court, hasn’t functioned since late 2019, when the U.S. blocked the appointment of new judges to the panel.

China is the dominant player in batteries for electric vehicles and has a rapidly expanding auto industry that could challenge the world’s established carmakers as it goes global. Its strength is in electric vehicles and its companies have become leaders in battery technology.

The European Union, concerned about the potential threat to its auto industry, launched its own investigation into Chinese subsidies for electric vehicles last year.

Under the new U.S. rule, only 13 of the more than 50 EVs on sale in the U.S. were eligible for tax credits, down from about two dozen models in 2023. Automakers have been scrambling to source parts that would make their models eligible for the credits.



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China wins WTO dispute with Australia over steel products


SYDNEY (AP) — China has won a nearly three-year-long dispute with Australia at the World Trade Organization over tariffs on steel products that began during a low point of bilateral relations between the countries, and Australia’s trade minister said Wednesday his government accepted the ruling.

Beijing took its complaint to the WTO in June 2021 over Australia’s extra duties on railway wheels, wind towers and stainless steel sinks imported from China. Trade in these products was worth 62 million Australian dollars ($40.4 million) in 2022.

On Tuesday, the WTO panel adjudicating the case in Geneva, Switzerland, found that Australia’s investigating authority, the Anti-Dumping Commission, had acted inconsistently with some articles of the anti-dumping agreement.

Australia’s Trade Minister Don Farrell said in a statement Wednesday that Canberra accepted the WTO’s ruling and supported a rules-based trading system.

“Australia will engage with China and take steps to implement the panel’s findings,” Farrell said.

“Australia remains committed to a fully functioning WTO dispute settlement system so that the rights and obligations of all WTO members can be enforced,” he added.

Trade tariffs have been a hot topic between Beijing and Canberra in recent years after China imposed a raft of sanctions on Australian goods in 2020 during the most recent nadir in the bilateral relationship. It is estimated that the tariffs cost the Australian economy 20 billion Australian dollars ($13 billion).

Most of the tariffs have since been lifted as the relationship thawed, but tariffs on wine, rock lobster and some abattoirs still remain.

In April, Australia suspended a complaint to the WTO in a bid to reopen the Chinese market to Australian barley, which had been one of the products targeted by the tariffs and was widely seen as the new Australian government’s attempts to repair relations with Beijing.

The Australian government has also halted another WTO dispute against China over sanctions on Australian wine worth about 1.1 billion Australian dollars ($720 million) in exchange for a review by China to be completed by the end of March.



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