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China

What Macron makes of the Taiwan Litmus Test

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French President Emmanuel Macron triggered a series of geopolitical debates after returning from his state visit to China on 9 April 2023. Strong criticism was provoked by his remarks that Europe should reinforce its strategic autonomy and avoid becoming either a ‘vassal’ of the United States, or a follower which adapts to an ‘American rhythm and a Chinese overreaction’ over Taiwan.

Authors: David Camroux and Earl Wang, CERI Sciences Po

Beijing naturally grasped this opportunity to applaud President Macron’s vision by denouncing the United States as often ‘coercing others’. President Macron clarified his take on Taiwan three days later, emphasising support for the status quo in the Taiwan Strait which he said has been an unchanged ‘French and European position’.

The caustic reaction to President Macron’s remarks was due to the timing. While his remarks were being made, Chinese military exercises had been launched around Taiwan following Taiwan’s President Tsai Ing-wen’s meeting with US House Speaker Kevin McCarthy in California.

It would seem that President Macron did not follow the advice of the experts he consulted — and quite probably his own foreign ministry — prior to his visit. They had argued that reference needed to be made to the preservation of peace and stability across the Taiwan Strait. It was only days later in remarks by French Foreign Minister Catherine Colonna that the subject was mentioned.

The state visit had two purposes, one diplomatic and the other economic. Macron sought to encourage Chinese President Xi Jinping ‘to bring Russia back to its senses and everyone back to the negotiating table’ over the war in Ukraine. Xi merely promised that he would contact Ukrainian President Volodymyr Zelensky when ‘conditions and the timing are right’ — carried out on 26 April 2023.

The other purpose of the visit was economic. Accompanied by his Economic and Finance Minister, Bruno Le Maire, and 60 top French executives Macron sought to promote and protect French investment in China at a time when an EU Comprehensive Agreement on Investment with Beijing has become a dead letter. The shared European mantra in relations with China today is that of ‘de-risking’. This keyword has been underlined by European Commission President Ursula von der Leyen and echoed by US National Security Advisor Jake Sullivan. Transatlantic differences on China are perhaps more apparent than real.

Macron’s remarks can also be contextualised as the French and European promotion of multilateralism in a multipolar global system. European political leaders do not see China as a threat to a unipolar world, but the ‘partner–competitor–systemic rival’ triptych. Paris views Washington to be making Taiwan a litmus test on which side a country is found within the great power rivalry between China under Xi’s rule and the United States with bipartisanship on its China strategy. In the US Congress — and in much of the Anglosphere — China hawks have made declared commitments towards Taiwan a test of allegiance.

The emergence of China as another great power is not seen in Europe as an existential threat. Europe is a post-imperial power unlike the United States of the China hawks or Xi’s China. European support for multipolarity and for strategic autonomy within the transatlantic alliance, like ‘de-risking’, is grounded in a cold-blooded assessment of the nature of European power grounded in an absence of ‘imperial desire’.

President Macron has the possibility of taking a step back on Taiwan — being the ‘good cop’ — because other leaders of EU institutions and Member States can help take on a more assertive stance. German Foreign Minister Annalena Baerbock, a week after Macron’s visit, confronted her Chinese counterpart Qin Gang with the ‘horror scenario of a military escalation in the Taiwan Strait’.

The EU’s High Representative of Foreign Affairs and Security Policy and Vice President of the European Commission Josep Borrell also stated the importance of the Taiwan Strait. He synthesised the seemingly different European positions on China in an op-ed published on 23 April 2023. Aside from expressing the European commitment to its One China policy, he underlined that the situation in and around Taiwan has direct impact on European interests. He further called on EU countries’ naval forces to patrol the Taiwan Strait — in his words, an ’absolutely crucial’ area — to uphold the principle of freedom of navigation.

Fortunately for Macron and Borrell,…

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Business

Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China

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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

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Business

China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves

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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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China

China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program

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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 ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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