Business
As IMF $56 Billion Argentina Debt Nears Default, China’s $17 Billion Loans at Risk
News Analysis
With the IMF’s $56 billion loan issued to Argentina less than a year ago nearing default, China’s $17 billion to Argentina and $140 billion total debt to Latin America is at risk.
A team of International Monetary Fund bankers arrived in Buenos Aires on Aug. 25, with Argentina’s inflation rate at 54.4 percent; the prime interest rate at 75 percent; and Wall Street traders betting there is a 47.3 percent probability of a sovereign default.
Argentina is blessed with tremendous natural resources and abundant water wealth, but the nation of 44 million has suffered through a series of inflationary crises and sovereign debt defaults that finally resulted in the IMF cutting off further bailouts in 2001.
China has dramatically increased its engagement with Latin America and the Caribbean since 2002. At the end of 2018, China Development Bank and China Export-Import were the area’s largest lenders with $140 billion outstanding, led Venezuela: $67.2 billion; Brazil: $28.9 billion; Ecuador $18.4 billion and Argentina: $16.9 billion.
During the same period, China-Latin America trade increased from $17 billion in 2002 to almost $306 billion in 2018. Chinese leader Xi Jinping set a goal in 2015 of increasing total China-Latin American trade to $500 billion in 10 years. With $200 billion in foreign direct investment, China’s 2018 imports equaled $158 billion and exports equaled $148 billion.
But U.S. Secretary of State Michael Pompeo, while touring Latin America last fall, told reporters that under China’s “One Belt, One Road” (OBOR, also known as Belt and Road) initiative, “When China comes calling it’s not always to the good of your citizens.” He warned, “When they show up with deals that seem to be too good to be true it’s often the case that they, in fact, are.”
The comments drew a quick response from the state-run China Daily newspaper that called Pompeo’s comments “ignorant and malicious” for pointing “an accusing finger at Chinese state-owned enterprises for not being transparent and market-driven, alleging that they are…
Business
HSBC Chairman to Head Key UK Business Delegation to China
HSBC Chairman Mark Tucker will lead a UK business delegation to China next month to boost trade and investment, amid concerns over national security and improving UK-China relations.
HSBC Chairman Leads UK Delegation to China
HSBC Chairman Mark Tucker will lead a pivotal British business delegation to China next month, marking the first significant visit since 2018. The trip aims to enhance Chinese investment in the UK, guided by Chancellor Rachel Reeves. Tucker, a seasoned financier with extensive Asia experience, is regarded as essential in resetting UK-China relations.
Reviving Economic Dialogue
Tucker will accompany senior bankers in seeking to rejuvenate trade, specifically focusing on financial services. Although there are apprehensions among some UK lawmakers regarding national security threats posed by closer ties to Beijing, the UK Treasury spokesperson confirmed Chancellor Reeves’ upcoming discussions on economic cooperation in Beijing.
A Shift in UK-China Relations
Since suspending most dialogues following China’s imposition of a national security law in Hong Kong, UK-China relations have soured. Nevertheless, the Labour government is prioritizing improved ties with China, emphasizing investment opportunities. Reeves asserts the necessity of a pragmatic approach to benefitting national interests amid ongoing concerns voiced by some lawmakers about security risks.
Source : HSBC Chairman to lead pivotal UK business delegation to China
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
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