The China Signal - May 7
Pacific Alliance, Sinopharm and Sinovac seek to expand local production, JF-17 fighter jet negotiations, lithium extraction in Bolivia
G’day, and welcome to The China Signal! This week, Beijing addresses the 10th anniversary of the Pacific Alliance; Sinopharm and Sinovac seek to expand local production of their vaccine in the region; negotiations underway for twelve JF-17 fighter jets to Argentina; Bolivia re-opens its doors to lithium extraction in Salar de Uyuni; plus more. Read on.
Diplomacy
China 🇨🇳
*China Daily is a Chinese state sponsored media agency.
Chinese State Councilor and Foreign Minister Wang Yi on Friday addressed in Beijing the 10th anniversary commemoration of the Pacific Alliance via video link.
On behalf of the Chinese government, Wang congratulated the Pacific Alliance on its 10th anniversary, saying that China stands ready to deepen multilateral and bilateral cooperation with the Pacific Alliance and its member states, continue to cooperate with Latin American and Caribbean countries in various fields such as combating the epidemic, demonstrate the concept of a community with a shared future between China and Latin America and jointly build China-Latin America relations in a new era featuring equality, mutual benefits, innovation, openness and benefiting the peoples.
The Pacific Alliance was established in 2011 and its member states include Colombia, Chile, Mexico and Peru. China became an observer country in 2013.
China’s Foreign Ministry spokesperson Wang Wenbin responded to a “Dorothy Dixer” (I made reference to this term in TCS March 12) on the topic from The Global Times in a press conference on Friday:
Foreign Ministry Spokesperson Wang Wenbin's Regular Press Conference on May 7, 2021
At the invitation of Colombia, the rotating president, State Councilor and Foreign Minister Wang Yi addressed the event via video link.
Vaccine Diplomacy
Brazil 🇧🇷
Brazil's Butantan expects less COVID-19 vaccine input from China | Reuters - May 6, 2021
Brazil’s Butantan biomedical center, which is producing the Chinese vaccine CoronaVac for COVID-19, said on Thursday that it expects to receive only 2,000 liters of active ingredients from China by May 13, slowing its production of finished shots.
Butantan had expected a shipment of 6,000 liters in the first half of May of the active ingredient, which is the part of the vaccine made from the actual virus and used in minuscule quantities in each dose.
The Chinese vaccine accounts for 75% of all vaccines applied so far against COVID-19 in Brazil, the ministry said.
Sinovac sends the vaccine’s active ingredient to Brazil for Butantan to fill and finish in vaccine vials.
The article doesn’t specifically detail who “Covas” is in the below comment, but I infer this to be Butantan’s head Dimas Covas. If what he’s saying is true, this is some pretty hard-nosed diplomacy from Beijing.
Covas said that the delay in the arrival of inputs from China was due to bureaucratic issues and not because of any problem in production by Sinovac.
He said recent anti-China statements by federal government officials made it difficult for the Chinese authorities to release active ingredient shipments for Brazil, delaying deliveries and resulting in smaller quantities.
Previously I’ve written that a big question around Beijing’s vaccine diplomacy in Latin America is its “stickiness” - how embedded Beijing’s vaccines will become in the region against other alternatives, as the virus is managed in the coming years. The below developments in Argentina and Chile suggest efforts are afoot from vaccine makers Sinopharm and Sinovac to increase domestic production of their vaccines in the region.
Argentina 🇦🇷
~Paraphrased translation~
“Who would manufacture the Chinese Sinopharm vaccine in Argentina after the agreement”
Quiénes fabricarían la vacuna china Sinopharm en la Argentina tras el acuerdo | Perfil - May 5, 2021
Representatives of the Argentine company Sinergium Biotech, a firm of the Insud Group led by Hugo Sigman, participated in the meeting between the Ministry of Health and the Chinese Embassy to develop the Sinopharm vaccine on local soil. Representative Zou Xiaoli confirmed on May 4, that the production of the Chinese vaccine in the country was agreed.
"After the meeting with [Argentina’s Minister of Health] Carla Vizzotti, Ambassador Zou Xiaoli affirmed that agreements were reached for the production of Sinopharm vaccines in Argentina. Pharmaceutical companies from both countries will immediately carry out consultations to start production as soon as possible," he posted on the Chinese embassy’s social media accounts.
Representantes de la compañía argentina Sinergium Biotech, firma del Grupo Insud que dirige Hugo Sigman, participaron de la reunión entre el Ministerio de Salud y la Embajada de China para desarrollar la vacuna Sinopharm en suelo local. El representante Zou Xiaoli ratificó este martes 4 de mayo que se acordó la producción de la vacuna china en en el país.
"Tras la reunión con Carla Vizzotti, el embajador Zou Xiaoli afirmó que se alcanzaron acuerdos para la producción de las vacunas de Sinopharm en Argentina. Las farmacéuticas de ambos países realizarán inmediatamente las consultas para arrancar la producción lo antes posible", sostuvo en sus redes sociales la embajada china sobre las tratativas, que se encuentran avanzadas.
Chile 🇨🇱
Chinese vaccine developer eyes production in Chile — MercoPress - May 5, 2021
China's Sinovac Biotech laboratory is reportedly evaluating the possibility of manufacturing the immunizer in Chile in a joint effort with the local Pontifical Catholic University, Rector Ignacio Sánchez said in a newspaper interview published Tuesday.
“Sinovac intends to establish a vaccine manufacturing plant in Latin America and finds that our country can be a very good place,” Sánchez said. The laboratory is looking specifically to produce the Coronavac vaccine in the region, it was reported.
Sánchez also told the local newspaper El Mercurio that the university had been approached to “work together on their arrival from the point of view of science.” The joint venture would also seek to a second phase 3 clinical study of the Coronavac vaccine.
Other vaccines, such as those against influenza and hepatitis could end up being produced locally in Chile as a consequence of the agreement currently under consideration, Sánchez explained.
Paraguay 🇵🇾
Some pressure being applied by Paraguay’s “Frente Guasu”, an opposition leftist political alliance for the Paraguayan government to pursue vaccines from Mainland China.
“China donates 40,000 face masks”
China Popular dona 40 mil tapabocas - Nacionales - ABC Color - April 29, 2021
~Paraphrased translation~
At the event, held in the Presidency of the Senate, was present Senator Sixto Pereira (Guasu Front), the main manager of donations, who highlighted the "political and humanitarian gesture" of the Chinese government.
Pereira questioned "the lack of sensitivity" of the Executive Branch for ignoring the eagerness of all sectors of society for it to secure medical supplies and vaccines, leaving aside ideological issues. He said this donation is in addition to 700 kg of medical supplies made by China last year.
Salomón thanked the donation and asked Senator Pereira for his good efforts to request the government of the People's Republic of China to send some 2 million doses of vaccines, which are urgently needed for for Paraguay at this time.
China Popular dona 40 mil tapabocas - Nacionales - ABC Color - April 29, 2021
En el acto, realizado en la Presidencia del Senado, estuvo presente el senador Sixto Pereira (Frente Guasu), principal gestor de las donaciones, quien destacó el “gesto político y humanitario” del gobierno chino.
Pereira cuestionó “la falta de sensibilidad” del Poder Ejecutivo por no hacer caso del clamor de todos los sectores de la sociedad para gestionar de manera efectiva la obtención de implementos médicos y vacunas, dejando de lado las cuestiones ideológicas. Dijo que esta donación se suma a los 700 kg. de insumos médicos que realizó China el año pasado.
Salomón agradeció la donación y solicitó al senador Pereira sus buenas gestiones para solicitar al gobierno de la República Popular China el envío de unas 2 millones de dosis de vacunas, que son de suma necesidad para el Paraguay en estos momentos.
Defence
Argentina 🇦🇷
Following the retirement of its latest Dassault Mirage III in 2015, the Argentine Air Force is out of supersonic fighter jets in its fleet and has been using subsonic A-4 attack aircraft while negotiating the purchase of intercept aircraft.
After negotiations with Korean Aerospace Industries (KAI) failed to offer the FA-50, Argentina has received offers from Russia, which includes the MiG-35, and from China.
In this case, the aircraft involved is theJF-17 fighter, produced in partnership with Pakistan, which is its largest operator. According to the country’s press, the Chinese export company CATIC intends to close an agreement for the supply of 12 fighters. For that purpose a delegation is in Argentina this week, according to the Zona Militar website.
Critical Minerals
Bolivia 🇧🇴
Bolivia launches call for lithium extraction – pv magazine International - May 4, 2021
Bolivia has announced plans to resume lithium extraction, according to a statement issued by the Ministry of Hydrocarbons and Energy and state-owned Yacimientos de Litio Bolivianos (YLB) last week.
The call is aimed at companies that have direct lithium-extraction technology (EDL) and that can conduct pilot tests at the Uyuni, Coipasa and Pastos Grandes salt flats, the Bolivian government said.
International players such as Russia's Uranium 1G, China's Gangfeng Lithium and TBEA, and U.S.-based EnergyX recently participated in an online meeting that YLB and the ministry held with potential investors. Experts at the meeting outlined the characteristics of EDL technology.
This is the second attempt to exploit lithium in Bolivia. YLB and Germany's ACI Systems agreed in October 2019 to set up a joint venture to exploit lithium from Bolivia. Around $1.2 billion was to be invested in a high-tech complex at the Uyuni salt flat, with the main product to be lithium-ion batteries. Under the terms of their agreement, YLB was set to take a 51% stake in the joint venture. Just a month later, however, the government stopped the project by decree, without giving any explanation.
Salar de Uyuni is believed to be the world's largest lithium deposit. The original plan was to produce 30,000 to 40,000 tons of lithium hydroxide a year from 2022, with investments of €300 million to €400 million.