China
North Korea pokes the polarisation bear
Authors: Francesca Frassineti, University of Bologna, Edward Howell, University of Oxford and Ria Roy, University of Cambridge
After Russia’s invasion of Ukraine, North Korea capitalised upon China’s and Russia’s tense relationship with the United States by reviving ties with its Cold War partners. Such rapprochement is anything but a strategic realignment. It is transactional — a way for North Korea to benefit economically while accelerating the scope and sophistication of its nuclear and missile capabilities.
Since the start of 2022, Pyongyang has intensified its missile testing to an unprecedented degree, most recently witnessed in a spate of missile launches in early November. These actions can be attributed to Kim Jong-un seeking to fulfil his five-year military plan — unveiled at the 8th Workers’ Party Congress in January 2021. North Korea is also becoming increasingly impatient at a lack of sanctions relief from the United States.
North Korea has never been a priority for US President Joe Biden, and the state of relations is a far cry from when an improved dialogue with the United States was sustained during Donald Trump’s presidency, largely thanks to the facilitation of former South Korean president Moon Jae-in. After failing to obtain any easing of sanctions from Washington following the collapse of talks in October 2019, Kim is now turning to Russia and China. North Korea remains eager to take advantage of the current paralysis in the UN Security Council, especially given how the Chinese leadership seems increasingly unable or unwilling to restrain its neighbour.
Rather than any concerted ideological or strategic realignment, North Korea’s recent overtures to Russia and China are opportunistic. On 14 July, Pyongyang recognised Russia-controlled breakaway republics in Eastern Ukraine. On 12 October, North Korea was among the four countries that voted against the UN General Assembly resolution condemning Russian ‘attempted illegal annexation’ of four Ukrainian regions. In early August, North Korea also denounced US ‘interference’ in Taiwan.
These actions cannot be detached from North Korea’s domestic economic crisis. Pyongyang will use every avenue to gain financial remittances, whether from workers in China and Russia — in violation of multilateral sanctions — or vocal support from Russia and China, in vetoing the imposition of further multilateral sanctions.
Since 2013, Kim has sought to strengthen domestic legitimacy by bolstering North Korea’s military and nuclear capabilities while accelerating economic development. In 2018, having declared the completion of the state nuclear force, Kim outlined a ‘new strategic line’, directing all energy to domestic economic development. But this has not borne fruit due to COVID-19, meteorological catastrophes, sluggish industrial output and a failure to meet construction targets.
Against the backdrop of decades-old sanctions, the self-imposed border closure of January 2020 was a key factor contributing to North Korea’s worst economic downturn in over 25 years. From late 2020, Kim publicly criticised government officials for failing to implement his guidelines. On 10 August 2022, Kim announced victory over COVID-19 and a re-examination of border controls. Trade with China has slowly resumed, although at a limited level, due to North Korea’s ongoing controls at disinfection and quarantine stations.
Relations between Pyongyang, Beijing and Moscow have not always been fruitful. Ties were disrupted at the end of the Cold War with the establishment of Soviet and Chinese relations with South Korea in 1990 and 1992. Pyongyang’s rapprochement with Moscow is a continuation of improved relations over the past decade, as Russia has become increasingly authoritarian.
In 2014, the Russian parliament wrote off 90 per cent of North Korea’s Soviet-era debt, worth over US$10 billion. The Russian Minister for Far Eastern Development also visited North Korea, pledging to increase trade. In 2019, Kim met Russian President Vladimir Putin and committed to strengthening ties.
Bilateral cooperation between Pyongyang and Beijing has also recently grown amid North Korea’s support for Beijing’s crackdown in Hong Kong and improved personal ties between Kim and Chinese President Xi Jinping, marked by Xi’s state visit to North Korea in 2019. There was also a reaffirmation of ties following the 60th anniversary of the Sino–DPRK Treaty on Friendship, Cooperation, and Mutual Assistance in July 2021.
Although Russia’s invasion of…
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
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
- Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
- China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
- China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
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