China
Simandou is China’s poisoned chalice
Authors: Luke Hurst, Lydekker and Peter Cai, Lowy Institute
In September 2021, Alpha Conde — the octogenarian president of Guinea — was toppled by the special forces he created. It is the latest episode of political instability in the West African state with not only rich resources but also a history of military coups.
A Chinese foreign ministry spokesperson, in an unusual move, spoke against the military coup and urged the immediate release of the former president. This is a departure from Beijing’s cardinal foreign policy dictate of non-interference in other countries’ domestic affairs.
China has a big stake in the country. Guinea is China’s biggest supplier of bauxite, a key raw material for the aluminium industry. But perhaps more importantly, Guinea is home to the world’s largest untapped iron ore deposit, Simandou.
With an estimated 2.4 billion tons of high-grade iron ore reserves, Simandou is widely seen as China’s best hope of reducing dependency on Australia, which is by far the largest supplier of iron ore to the country. Beijing’s relationship with Canberra has sunk to new lows during the last two years over a range of bitter disputes from the South China Sea to the decision to exclude Huawei from Australia’s 5G network.
Guinea was mentioned as an option for China to develop a large-scale iron ore mine in its five-year plan for the steel industry released by the Ministry of Information Technology and Industry in early 2021. It is a key piece in China’s strategy of achieving a higher degree of resource security.
Two Chinese companies already have strategic stakes in the Simandou project — the state-owned Chinaclo and the privately controlled Weiqiao. In 2020, China’s largest steelmaker, Baowu Steel Group, was reportedly exploring the possibility of establishing a US$6 billion consortium to develop Simandou in partnership with other steelmakers, engineering companies and sovereign wealth funds.
The ouster of Alpha Condo could derail Beijing’s ambition to reduce its dependency on Australia for iron ore, highlighting one of Simandou’s biggest risk factors: political instability in a country ravaged by civil war and tribal conflicts.
China is cognisant of political risk and is not afraid of airing it publicly. China Geological Survey published a report in 2020 highlighting the Guinea government’s lack of respect for contractual arrangements, political instability and rising African resource nationalism.
The report is critical of industrial relations in the country and cites increasingly frequent strikes as a ‘negative’ for investment. It concludes by saying that while the Simandou project’s advantages are clear, the risks are also significant, including huge investment outlay, a long investment cycle, and uncertainty. Chinese firms have acquired mining rights, but there is significant uncertainty about the profitability of the project. The report notes, ‘Chinese companies will face significant challenges during implementation and operation stages of this project’.
The Chinese government’s geology services further warn about the Guinean government’s desire to extract as much as US$15.5 billion in tax. A non-Chinese mining executive who was heavily involved in the early development of the Simandou project noted: ‘the biggest [issue] is that Simandou is a national crown jewel and in any country … resources of that scale come with very big political strings … this is far bigger than anything they’ve ever had to deal with before’.
Australian miner and Chinalco’s partner in the project, Rio Tinto, understood the risk too well as the victim of Guinea’s past expropriations after winning the exclusive development rights in 1997. Today, Rio Tinto’s share in the Simandou project has been whittled down to 44.05 per cent.
In Simandou, Beijing faces a huge dilemma. It is a significant opportunity to reduce its dependency on a supplier that it no longer trusts. But geography, price fluctuations and political instability also present significant risks.
Despite Beijing’s established ties in Africa, its large cheque book and ability to deliver massive infrastructure projects quickly, there are things even the Chinese Communist Party find beyond their control.
Luke Hurst is Managing Director at Lydekker, an Australian-based Asia strategy and market advisory firm.
Peter Cai is Research Fellow and Director of China-Australia relations at the Lowy Institute.
The post Simandou is China’s poisoned chalice first appeared on East Asia Forum.
China
Is journalist Vicky Xu preparing to return to China?
Chinese social media influencers have recently claimed that prominent Chinese-born Australian journalist Vicky Xu had posted a message saying she planned to return to China.
There is no evidence for this. The source did not provide evidence to support the claim, and Xu herself later confirmed to AFCL that she has no such plans.
Currently working as an analyst at the Australian Strategic Policy Institute, or ASPI, Xu has previously written for both the Australian Broadcasting Corporation, or ABC, and The New York Times.
A Chinese language netizen on X initially claimed on March 31 that the changing geopolitical relations between Sydney and Beijing had caused Xu to become an expendable asset and that she had posted a message expressing a strong desire to return to China. An illegible, blurred photo of the supposed message accompanied the post.
This claim was retweeted by a widely followed influencer on the popular Chinese social media site Weibo one day later, who additionally commented that Xu was a “traitor” who had been abandoned by Australian media.
Following the publication of an ASPI article in 2021 which exposed forced labor conditions in Xinjiang co-authored by Xu, the journalist was labeled “morally bankrupt” and “anti-China” by the Chinese state owned media outlet Global Times and subjected to an influx of threatening messages and digital abuse, eventually forcing her to temporarily close several of her social media accounts.
AFCL found that neither Xu’s active X nor LinkedIn account has any mention of her supposed return to China, and received the following response from Xu herself about the rumor:
“I can confirm that I don’t have plans to go back to China. I think if I do go back I’ll most definitely be detained or imprisoned – so the only career I’ll be having is probably going to be prison labor or something like that, which wouldn’t be ideal.”
Neither a keyword search nor reverse image search on the photo attached to the original X post turned up any text from Xu supporting the netizens’ claims.
Translated by Shen Ke. Edited by Shen Ke and Malcolm Foster.
Asia Fact Check Lab (AFCL) was established to counter disinformation in today’s complex media environment. We publish fact-checks, media-watches and in-depth reports that aim to sharpen and deepen our readers’ understanding of current affairs and public issues. If you like our content, you can also follow us on Facebook, Instagram and X.
Read the rest of this article here >>> Is journalist Vicky Xu preparing to return to China?
China
Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China
Foreign residents in China can request a criminal record check from their local security bureau. This certificate may be required for visa applications or job opportunities. Requirements and procedures vary by city. In Shanghai, foreigners must have lived there for 180 days with a valid visa to obtain the certificate.
Foreign residents living in China can request a criminal record check from the local security bureau in the city in which they have lived for at least 180 days. Certificates of no criminal record may be required for people leaving China, or those who are starting a new position in China and applying for a new visa or residence permit. Taking Shanghai as an example, we outline the requirements for obtaining a China criminal record check.
Securing a Certificate of No Criminal Record, often referred to as a criminal record or criminal background check, is a crucial step for various employment opportunities, as well as visa applications and residency permits in China. Nevertheless, navigating the process can be a daunting task due to bureaucratic procedures and language barriers.
In this article, we use Shanghai as an example to explore the essential information and steps required to successfully obtain a no-criminal record check. Requirements and procedures may differ in other cities and counties in China.
Note that foreigners who are not currently living in China and need a criminal record check to apply for a Chinese visa must obtain the certificate from their country of residence or nationality, and have it notarized by a Chinese embassy or consulate in that country.
Foreigners who have a valid residence permit and have lived in Shanghai for at least 180 days can request a criminal record check in the city. This means that the applicant will also need to currently have a work, study, or other form of visa or stay permit that allows them to live in China long-term.
If a foreigner has lived in another part of China and is planning to or has recently moved to Shanghai, they will need to request a criminal record check in the place where they previously spent at least 180 days.
There are two steps to obtaining a criminal record certificate in Shanghai: requesting the criminal record check from the Public Security Bureau (PSB) and getting the resulting Certificate of No Criminal Record notarized by an authorized notary agency.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
China Unveils Plan to Upgrade Industrial Equipment
China unveiled a comprehensive action plan for upgrading industrial equipment, with a focus on driving technological innovation and economic growth. The plan, released on April 9, 2024, aims to enhance competitiveness and sustainability within the manufacturing sector through extensive investment and regulatory support.
China announced an ambitious action plan for industrial equipment upgrading, which aims to drive technological innovation and economic growth through extensive investment and regulatory support.
On April 9, 2024, China’s Ministry of Industry and Information Technology (MIIT) and six other departments jointly released a notice introducing the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector (hereafter referred to as the “action plan”).
Finalized earlier on March 23, 2024, this comprehensive action plan addresses critical issues related to technological innovation and economic development. It reflects China’s proactive stance in enhancing competitiveness and sustainability within its manufacturing sector. The initiative underscores the recognition of industrial equipment upgrading as a top policy priority.
The scope of China’s action plan to upgrade industrial equipment in manufacturing, is extensive, covering various aspects such as:
In line with China’s ambitious goals for industrial modernization and sustainable development, the action plan outlines several key objectives aimed at driving substantial advancements in the industrial sector by 2027.
These objectives encompass a wide range of areas, from increasing investment to enhancing digitalization and promoting innovation, including:
The objectives and key actions proposed in the action plan are summarized below.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
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- China Unveils Plan to Upgrade Industrial Equipment
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