The China Signal - December 11
Nicaragua flips to the PRC, China-CELAC Forum, CGTN deepens relationship with the region's major media organisations + more
G’day, and welcome to The China Signal. This week, Nicaragua switches its diplomatic allegiance from Taiwan to the PRC; announcements from the China-CELAC Forum; CGTN deepens its relationship with over 30 major media organisations in the region; MMG to cease copper operations at Las Bambas in Peru; Microsoft takes a step in combating Nickel, a Chinese state-backed hacking group; plus much more. Read on!
Diplomacy
Nicaragua 🇳🇮
Taiwan loses diplomatic ally Nicaragua to China | AP News - December 10, 2021
Taiwan lost Nicaragua as a diplomatic ally after the Central American country said it would officially recognize only China, which claims self-ruled Taiwan as part of its territory.
“There is only one China,” the Nicaraguan government said in a statement Thursday announcing the change. “The People’s Republic of China is the only legitimate government that represents all China, and Taiwan is an inalienable part of the Chinese territory.”
“As of today, Nicaragua breaks its diplomatic relations with Taiwan and ceases to have any official contact or relationship,” it added.
This reduces Taiwan’s diplomatic allies from 15 to 14.
Some experts say the switch is not necessarily a significant loss for Taiwan and may only have been a matter of time. Taiwan has been increasing its exchanges with Western countries and has emphasized the sharing of democratic values and working with “like-minded” nations.
“Everyone could see early on that this diplomatic relationship couldn’t be kept,” said Antonio C. Hsiang, a professor at La Academia Nacional de Estudios Y Estrategicos in Chile and an expert on Taiwan’s relations in Latin America.
Taiwan’s emphasis on democratic values stands in contrast to many of its diplomatic allies, such as Nicaragua or Honduras.
Nicaraguan President Daniel Ortega was reelected in November in what the White House called a “pantomime election.”
The analytical consensus is that this was timed by Nicaragua and China in response to Nicaragua and several other Central American countries’ exclusion from Joe Biden’s democracy summit.
Nicaragua cuts ties with Taiwan and pivots to China | Taiwan | The Guardian - December 10, 2021
The announcement came after a meeting in Tianjin between China’s deputy foreign minister Ma Zhaoxu and a Nicaraguan delegation led by President Daniel Ortega’s son Laureano Ortega Murillo, who is the presidential adviser for investments, trade and international cooperation.
Based on the past diplomatic flips to the PRC by Costa Rica (2007), Panama (2017), the Dominican Republic and El Salvador (2018), it is likely that the Ortegas and businesspeople connected with them will travel to the PRC to sign a series of non-transparent Memoranda of Understanding. These MOUs will probably include references to expedited approval of phytosanitary agreements and other measures to facilitate the importation of a symbolic amount of Nicaraguan coffee and fruit, benefitting select Ortega cronies in the export sector, as happened in other Central American countries.
In the educational sphere, Chinese and Nicaraguan officials wil likely announce a new Confucius Institute in Managua, along with Hanban scholarships for well-connected Nicaraguan students, and perhaps Chinese support to the Nicaraguan foreign ministry to set up their operations in the PRC.
Beyond such symbolic gestures, the non-transparent MOUs will likely open the way for significant infrastructure projects in sectors from ports and highways to electricity, designed by Chinese companies, built by Chinese laborers, and funded by Chinese policy bank loans.
It is not clear whether the diplomatic flip will revive the Nicaraguan Canal, a proposed alternative to the Panama Canal that received interest from Chinese billionaire Wang Jing and approval from the Ortega government in 2013, but has since languished. Nonetheless, it will be a topic of much speculation, particularly if Wang and his company Xinwei return to the spotlight with Paul Oquist, a Nicaraguan official who played a key role in the project’s development. The fact that Daniel Ortega’s son Laureano, who played the key role in the canal project, also led the secret negotiation in Tianjin, China, that led to Nicaragua’s flip, suggests that a resurrection of the canal project could be on the table at some point.
The most grave consequences of Nicaragua’s flip go beyond the Nicaragua-China relationship. Given that Nicaragua is also one of Russia’s closest partners in the region, the influx of Chinese money may give the Ortegas new resources and boldness to expand security cooperation and other provocative activities with Russia. That, in turn, will raise concern across the region, particularly in Colombia and Costa Rica. Indeed, Russia’s current posturing toward an invasion of Ukraine may increase its interest in closer ties with Nicaragua. Building relations with U.S. adversaries in the Western Hemisphere would complicate the strategic chessboard for Washington, just as Russia reached out to Nicaragua and other allies in Latin America in the context of the Russian-backed succession crisis in Georgia in 2008, and with the escalation of tensions with Russian-backed separatists in the Donbas region of Ukraine in 2013.
Broader Latin America 🏔🏝
Leer en español aquí.
On 3 December 2021, the third Ministers’ Meeting of the China-CELAC Forum (CCF) was successfully held via video link.
State Councilor [and Foreign Minister] Wang Yi made a five-point proposal for China and LAC countries to jointly create opportunities for independent, interconnected, green, open and inclusive development. He also announced a series of cooperation measures: China will set up two special loans respectively for China-LAC development cooperation and digital economy cooperation to support practical cooperation in the eight areas identified in the Global Development Initiative, and support efforts by both sides to pursue the path of green, low-carbon and sustainable development; China pledges to encourage the UNFAO to support LAC countries in addressing the issue of food security with the China-FAO Trust Fund for South-South Cooperation; China also announced the establishment of a China-Caribbean development center and the decision to provide new government scholarships and training places for LAC countries.
The meeting adopted two outcome documents, namely the Declaration of the Third Ministers’ Meeting of the China-CELAC Forum and the China-CELAC Joint Action Plan for Cooperation in Key Areas (2022-2024), which clearly demonstrate the willingness of China and LAC countries to promote the building of a China-LAC community with a shared future and jointly meet global challenges, and draw up the roadmap for China-LAC cooperation in political and security areas, economy, infrastructure, social and people-to-people matters, sustainable development, and international and regional affairs in the next three years.
CHINA - CELAC JOINT ACTION PLAN FOR COOPERATION IN KEY AREAS (2022-2024) - December 7, 2021
The plan focuses on areas of political and security cooperation; trade and investment; finance; agriculture; science and technology; industry and information technology; aviation and aerospace; energy and resources; tourism; customs and taxes; infrastructure; public health; sustainable development and the eradication of poverty; culture, art and sports; higher education and think tanks; media; community exchanges; and sustainable development.
A few interesting things I picked up:
Political and Security Cooperation
6. Promote a dialogue for cooperation, implement and eventually develop norms and rules for cyberspace, to tackle the misuse of information and communication technology (ICT) to incite and commit acts of terrorism; improve legal assistance mechanisms for cybercrime; participate actively in negotiations to elaborate a UN convention on countering the use of information and communications technologies for criminal purposes, and safeguard peace and security in cyberspace. We highlight the Global Initiative on Data Security presented by China.
This initiative is China’s response to the U.S.’ Clean Network, and aims to set global standards and norms on data governance.
Finance
II.2 Bring the functions of China’s financing package to LAC countries, into full play, by providing a key support to strategic projects benefiting the sustainable economic and social development of the CELAC Member States, particularly favoring the Small Island Developing States, Low Lying Coastal Countries and Central American Isthmus countries. China will assist in conducting feasibility studies on the development of comprehensive projects and elaborate development plans.
II.3 Considering the capacities and financial regulations of each party involved, intensify the dialogue and cooperation between the Central Banks and the financial regulatory authorities, supporting the extension of settlement in local currencies between the CELAC countries and of these with China.
Agriculture and Food
3.4 China is willing to encourage the Food and Agriculture Organization of the United Nations to allocate US$2 million from the FAO-China Trust Fund for South-South and triangular Cooperation to support CELAC Member States to address food security problems.
Science and Technology
4.1 Strengthen exchanges between scientific and technological authorities, to increase synergies between the innovation, academic, and scientific sectors of the Parties, and intensify exchange and academic activities between their researchers and innovative scholars. In addition, promote exchange programs between young scientists and encourage scientific and technological personnel from CELAC Member States to actively participate in the “Work Program in China for outstanding young scientists from developing countries”.
4.4 Explore cooperation in the construction of joint laboratories and strengthen joint research and technological innovation in priority areas of common interest. Explore and promote cooperation in science and technology parks and support the exchange of experiences among the Parties. Organize training courses of applicable advanced technologies and scientific management to promote regional common development of science, technology, society, and environment.
4.5 Strengthen exchanges and cooperation in the peaceful civilian use of nuclear energy and nuclear technology, promote relevant practical projects, experience sharing and cooperation in talent training, and bring into play the advantages offered by nuclear technology and nuclear energy in promoting economic development and people’s well-being, as well as in meeting the challenges of climate change.
Aviation and Aerospace
6.4 Actively explore cooperation in the BeiDou Satellite Navigation System, satellite development, application and calibration, so that the progress of space technology will truly accelerate progress towards green, sustainable and inclusive recovery from the COVID-19 pandemic and beyond.
The BeiDou satellite navigation system is a rival to the U.S.’ GPS navigation system.
Infrastructure
4. Deepen private sector cooperation between China and the LAC countries, and explore holding a China-CELAC Private Sector Cooperation Forum.
Public Health
I.2 Deepen solidarity and cooperation and strengthen the study of COVID-19 variants and cooperation in joint vaccine production, research and development. The Chinese side is willing to offer anti-epidemic assistance to CELAC Member States within its capabilities.
I.6 China welcomes CELAC Member States to access the Special China-LAC Anti-epidemic Loans to support the construction of public health infrastructure in their respective countries.
Higher Education
4.2 Between 2022 and 2024, the China shall provide CELAC Member States with 5,000 government scholarships and 3,000 training places in China.
4.4 Promote exchanges between young leaders, implement the “Bridge to the Future” Training Program for One Thousand Chinese and Latin American Youth Leaders, and hold the China-LAC Youth Development Forum.
Guyana 🇬🇾
China donates $7m for UG infrastructure - Stabroek News - December 7, 2021
The Government of China on Wednesday presented a cheque for $7m to the University of Guyana (UG).
A press release yesterday from UG said that new Ambassador from China to Guyana, Guo Haiyan along with the First Consul of the Embassy and Director of Trade and Development in the Embassy paid a courtesy call on the Vice-Chancellor of the University of Guyana and members of her Senior Management Team. During the meeting UG was gifted the cheque to aid in the refurbishing of a generator and the construction of an access road at the institution’s Turkeyen Campus, East Coast Demerara.
China gifts UG $7M for infrastructural works - Guyana Chronicle - December 8, 2021
“This is the continuation of very close relations between the university and the Embassy of China in Georgetown. We have a Confucius Institute on the campus that trains hundreds of Guyanese every year in Mandarin Language, and we look forward to growing that and to the continued support of the embassy for the university,” the Vice-Chancellor stated.
The University’s Confucius Institute was opened in 2014.
Media
Broader Latin America 🏔🏝
*Note, CGTN is a Chinese state-sponsored media outlet.
CGTN launches China-Latin America Media Action project - CGTN - December 3, 2021
CGTN and Latin American media on Thursday jointly launched an action initiative to deepen their cooperation, gather strength and enhance consensus.
More than 30 media organizations from Latin America will cooperate with CGTN on a variety of projects, including online forums, co-productions, screenings and talk shows.
Addressing the launch via video link, President of China Media Group Shen Haixiong said media exchanges between China and Latin American countries are an important part of China-Latin America relations and play a major role in tightening friendship between people of the two sides.
‘Deepen Cooperation, Unify Force and Build Consensus - CMG's CGTN and Latin American Media Jointly Launch the "China-LAC Media Action" initiative’
Note the completely uncritical nature of this article, too.
~Paraphrased translation~
Through this platform, the media of both parties will promote greater cooperation, cohesion and media consensus through online forums, co-productions of thematic documentaries on China and Latin America, the CGTN China-LAC Film and Television Tour, the launch of the youth opinion program Café con CGTN, and the start of the campaign for the relay of public service short films in the media, in order to deepen cooperation, unify force and foster consensus.
Mediante esta plataforma, los medios de comunicación de ambas partes promoverán una mayor cooperación, cohesión y consenso mediático a través de foros online, coproducciones de documentales temáticos sobre China y América Latina, la Gira de Cine y Televisión China-ALC de CGTN, el lanzamiento del programa de opinión de jóvenes Café con CGTN, y el inicio de la campaña del relevo de cortometrajes de servicio público en los medios de comunicación, con el fin de profundizar la cooperación, unificar la fuerza y fomentar el consenso.
In his speech, Juan Carlos Isaza Montejo, executive director of the Latin American Informational Alliance, the most influential television organization in the region, stated that he will continue to promote cooperation with CGTN in the exchange of news and other areas to improve understanding between China and Latin America.
For his part, Ignacio Vivas, general director of the Indalo Media Group, stated that the Argentine corporation will continue to deepen relations with the media through the initiative, expanding the exchange of experiences and promoting cooperation in the exchange of documentaries, news and other content.
Likewise, other heads of various mass media, such as the Andean News Agency of Peru, the National Radio and Television of Colombia, the Pressenza news agency of Chile, the TeleSUR network of Venezuela and the Grupo América of Argentina, expressed their support for the initiative and their willingness to cooperate, stating that the "China-LAC Media Action" initiative, launched by CGTN, brings the distant peoples of China and Latin America closer together and provides more opportunities for exchange and media cooperation between both parties.
En su intervención, Juan Carlos Isaza Montejo, director ejecutivo de la Alianza Informativa Latinoamericana, la organización televisiva más influyente de la región, afirmó que seguirá promoviendo la cooperación con CGTN en materia de intercambio de noticias y otras áreas para mejorar el entendimiento entre China y América Latina.
Por su parte, Ignacio Vivas, director general del Grupo Indalo Media afirmó que la corporación argentina seguirá profundizando las relaciones con los medios de comunicación a través de la iniciativa, ampliando el intercambio de experiencias y promoviendo la cooperación en el intercambio de documentales, noticias y otros contenidos.
Asimismo, otros responsables de varios medios de comunicación de gran difusión, como la Agencia de Noticias Andina de Perú, la Radio y Televisión Nacional de Colombia, la agencia de noticias Pressenza de Chile, la cadena TeleSUR de Venezuela y el Grupo América de Argentina, expresaron su apoyo a la iniciativa y su voluntad de cooperar, afirmando que la iniciativa de "Acción de Medios China-ALC", lanzada por CGTN, acerca a los pueblos distantes de China y América Latina y brinda más oportunidades de intercambio y cooperación mediática entre ambas partes.
Natural Resources
Peru 🇵🇪
HK-listed MMG to cease copper operations at Peru mine | The Mighty 790 KFGO | - December 3, 2021
Miner MMG Ltd said on Friday it would cease copper production from its Las Bambas mine in Peru by mid-December, as it failed to establish commercial relationships with the Peruvian residents of the Chumbivilcas community organisations.
The Hong Kong-listed company said that no resolution was reached at a meeting on Nov. 30 between the Peruvian government and the community due to what the company views as ‘excessive commercial demands’.
MMG, a unit of state-owned China Minmetals Corp, has faced repeated disruption to shipments from Las Bambas due to local community blockades in recent years. In July, it flagged that production in 2021 was expected in the low end of its 310,00-330,000 tonnes forecast.
Las Bambas, which produces 400,000 tonnes of copper a year and about 2% of the world’s copper, brought in about 69% of Hong Kong-listed MMG’s revenue in 2020.
Illegal Tobacco
Broader Latin America 🏔🏝
Diálogo Americas ran a story on China National Tobacco Corporation’s increasing encroachment into the region’s illegal cigarette market. This was based off a report by the Organized Crime and Corruption Reporting Project, which was published in June.
Smuggled Chinese Cigarettes Increasingly Reach Latin America | Diálogo Americas - December 7, 2021
I covered this extensively in TCS July 2.
Cyber-Attacks
Broader Latin America 🏔🏝
Microsoft seizes control of websites used by China-backed hackers | TechCrunch - December 6, 2021
Microsoft has seized control of a number of websites that were being used by a Chinese government-backed hacking group to target organizations in 29 countries, including the U.S.
Microsoft’s Digital Crimes Unit (DCI) said on Monday that a federal court in Virginia had granted an order allowing the company to take control of the websites and redirect the traffic to Microsoft servers. These malicious websites were being used by a state-sponsored hacking group known as Nickel, or APT15, to gather intelligence from government agencies, think tanks and human rights organizations, according to the company.
Microsoft didn’t name Nickel’s targets, but said the group was targeting organizations in the U.S. and 28 other countries. It added that “there is often a correlation between Nickel’s targets and China’s geopolitical interests.”
Microsoft, which has been tracking Nickel since 2016 and previously described it as one of the “most active” hacking groups targeting government agencies, said it observed “highly sophisticated” attacks that installed hard-to-detect malware that facilitates intrusion, surveillance and data theft. In some cases, Nickel’s attacks used compromised third-party virtual private network (VPN) suppliers and credentials obtained from spear-phishing campaigns, according to Microsoft, and in others, vulnerabilities in Microsoft’s own Exchange Server and SharePoint system were used to infiltrate companies.
In addition to the U.S., Nickel also targeted organizations in Argentina, Barbados, Bosnia and Herzegovina, Brazil, Bulgaria, Chile, Colombia, Croatia, Czech Republic, Dominican Republic, Ecuador, El Salvador, France, Guatemala, Honduras, Hungary, Italy, Jamaica, Mali, Mexico, Montenegro, Panama, Peru, Portugal, Switzerland, Trinidad and Tobago, the United Kingdom and Venezuela.
Critical Minerals
Argentina 🇦🇷
Jujuy, the Argentine province that forms part of South America's so-called lithium triangle, is in talks with four potential global partners to develop new brine deposits, Felipe Albornoz, president of provincial energy and mining company Jemse, has revealed in an interview.
Jemse, which has high-altitude acreage, is in talks with companies from Australia, China and Canada. At least one of these companies has an interest in electric vehicles and is looking to secure lithium supplies for batteries.
Albornoz hopes a deal can be struck next year. The projects would be entirely new and would require a total investment of about US$700 million.
Agriculture
Brazil 🇧🇷
Brazil's beef exports down as Chinese ban continues - Brazilian Report - December 6, 2021
As the article states, it’s important to note that although Brazil’s beef monthly exports are drastically less than they were a year ago, revenue is actually 10% higher for the year to date, compared to the same period in 2020. Brazilian beef exporters have favourable conditions for them at the moment - a devalued currency and higher commodity prices.