As Chinese companies go global, allegations of social and environmental violations related to their activities overseas have surged in number alongside China’s expanding economic footprint and influence across continents and sectors. A recently published report analysed publicly recorded allegations of human rights abuses linked to overseas Chinese business operations between 2013 and 2020.
Category Archives: Economy and Ecology
Empire Building with DCS?
In the West, China is currently seen as an important driving force behind the global economic recovery after the Corona crisis. But can it continue to fulfil this role – or is “the future of globalisation with China at stake”, according to the European Chamber of Commerce in China? The background to this apprehensive question is the “new economic model” that state and party leader Xi Jinping announced in May 2020, the ‘Dual Circulation Strategy’, DCS.
Newsletter 8/December 2021
CONTENTS: Posts: ‘Dual Circulation Strategy’: China’s „new development model“ / Numbers mystique at ChinAfrica Forum // News: Europe’ response to Belt&Road: ‘Global Gateway’ / 20th Anniversary of China’s accession to the World Trade Organisation / Debt debate: Highway to Disinformation? / Frigate ‚Bayern’ demonstrates to Beijing where the hammer is hanging // Readings: Changes in Beijing’s economic involvement: Adaptation and Agency.
China’s „new development model“
With the ‘Dual Circulation Strategy’ (DCS), the government in Beijing has once again thrown a stone into the water to test the effects of the announcement. However, after a few critical articles, the international discussion has remained surprisingly quiet. Yet the deliberations could have far-reaching implications for further globalization and China’s leading role in it.
Beijing reports boom in foreign trade
China’s authorities report soaring foreign trade figures, despite of the on-going Corona pandemic. A further shift towards the BRI countries is emerging, a trend that plays into the narrative of the ‘Dual Circulation Strategy’ announced this summer. This “new development model” intends, on the one hand, to further enhance the internal economy, while ‘external circulation’ refers to further integration into the global economy through foreign trade and investments.
Coal phase-out ‘par ordre de mufti’
President Xi Jinping’s announcement at the UN General Assembly in September that China will not build any new coal-fired power plants abroad in the future has given the international climate community new hope for an accelerated reduction of CO2 emissions worldwide, like the mirage of an oasis to the thirsty wanderers in the Sahara. For a real energy transition in the countries of the Global South, however, this is only one – albeit important – piece of the puzzle.
“No new coal power abroad”
Advocates have been doing everything they can for years to stop the construction of new coal power plants. Xi Jinping’s announcement could bring an end to China’s position as the world’s largest and last major public financial backer and builder of coal fired power plants overseas.
Myanmar: Construction Sites off the Silk Road
When China’s Foreign Minister Wang Yi visited Myanmar in January this year, he combined the announcement of vaccine supplies with offers of deepened economic cooperation. The timing of the visit was astute, coming after the party of Aung San Suu Kyi, the NLD, was re-elected for a second term in November 2020 – and two weeks before the military coup.
Ethiopia: Bridgehead at Risk
Ethiopia has become one of Africa’s fastest-growing economies. The rail link between Djibouti on the Red Sea and Addis Ababa, built with Chinese credit and by Chinese companies, provides the landlocked country with a connection to the ‚Maritime Silk Road’. An escalation of the civil war, which broke out in Ethiopia’s Tigray Province in early November, would be damaging to Beijing’s plans for Africa.
RCEP: „Blood, Sweat, and Tears“
When fifteen Asia-Pacific countries signed the free trade agreement RCEP in Mid-November it was an event with exceptional dimensions: It creates an economic zone with a population of 2.2 billion people and around one third of the world’s economic output. There are three of Asia’s four leading economies – China, Japan and South Korea – first time together involved.