Chinese Customs destroys half a ton of ivory worth £3m

ivory2-634x330Chinese authorities destroyed more than half a tonne of confiscated ivory in Beijing here the other day. The public event, organised by the Chinese State Forestry Administration and the Customs Department, is set to display the country’s determination to ‘further protect wild animals’, according to the People’s Daily Online.

A whopping 662kg (1,460lb) of illegal ivory and ivory products were ground into powder as part of the central government’s crackdown on the illegal trade. The destroyed ivory items include thousands of ornaments, jewellery and fine art pieces. Whole elephant tusks were carved into the images of Buddhas, goddesses or Chinese landscapes.

Members of the media and diplomats were invited to attend the public destruction, which took place at Beijing Wild Animals Rescue Centre, as Chinese authorities hope to rid the country’s reputation of a global trading hub for illegal elephant tusks.

According to the country’s Forestry Administration, raw tusks sell for at least 41,667 Yuan (£4,400) per kilogram, making the total value of this destruction around £3 million. Source: Customs Today

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China hopes to dominate Africa by boosting trade via Indian Ocean

EastAfricaMapPeople’s Republic of China (PRC) officials are becoming increasingly apprehensive about the rise in the use of the westward corridor to export oil, diamonds, and rare minerals out of South Sudan and the Central African Republic via Cameroon. In other words, this creates a flow to Atlantic sea and air transportation routes, rather than routes eastward to Indian Ocean trade routes. Beijing is also concerned over the growing tension between Sudan and its neighbors – particularly South Sudan – because of the impact this might have on the PRC’s long-term designs to dominate Africa’s resources trade.

A key component of the Chinese long-term strategy has long been to converge all the flow of oil, gas, and minerals to a single export point on the shores of the Indian Ocean; that is, in the direction of China. This vision is getting closer to realization given the progress made toward beginning construction of the maritime complex in Lamu on the northern Kenyan shores of the Indian Ocean. The Lamu mega-port and adjacent industrial and transportation complexes are a major element of the Kenyan Government’s Vision 2030 initiative. Lamu is the key to the long-needed modernization of Kenya’s deteriorating infrastructure and boosting of economic output.

Although Nairobi keeps insisting that there will be international tenders for each and every phase of the Lamu project, the overall design in fact follows Beijing’s proposal, and Nairobi acknowledges that no international consortium has so far been able to remotely compete with the financial guarantees offered by official Beijing in support for proposals presented by Chinese entrants. This is because Beijing considers the Lamu mega-port and transportation complex to be the key to the PRC’s long term domination over African trade and resources.

The initial costs of the first phase of the Lamu project are estimated at $25.5-billion. The name of this first phase – the Lamu Port and New Transport Corridor Development to Southern Sudan and Ethiopia (LAPSSET) – points to the initial objectives. Significantly, the term used is “Southern Sudan” and not the state of South Sudan. When completed, the first phase of the Lamu complex will include a 32-berth port, three international airports, and a 1,500km railway line. As well, the Chinese plan oil pipelines from Juba in South Sudan, and from Addis Ababa via Moyale, Kenya, to converge into Kenya’s Eastern Province and end in a new huge oil refinery in Bargoni, near Lamu. The entire construction and pipelines will be supported by a 1,730km road network. In the longer term, the trans-African pipelines the Chinese plan on building from both Nigeria in the west and south-western Africa (most likely Angola) will also feed into the Lamu complex, thus giving the PRC effective control over the main hydrocarbon exports of Africa.

The strategic cooperation between Beijing and Khartoum constitutes the key to the Chinese confidence that their Sudanese allies be able to contain their Somali jihadist proxies so that the risk of terrorist attacks is minimal. Simply put, Beijing is ready to do anything just to ensure the flow of oil eastwards rather than westwards.

Ultimately, the significance of the Chinese long-term grand design for Africa can be best comprehended in the context of historic transformation in the grand strategy and polity of the PRC. Beijing has been arguing since the fall of the Soviet Union that the decline of the United States was also inevitable and that China was destined to rise as the global hegemon. Presently, Beijing is convinced that the time is ripe for delivering the coup de grace.

On October 13, 2013, the official Xinhua news agency published an official commentary stating that “it is perhaps a good time for the befuddled world to start considering building a de-Americanized world”. The commentary surveyed the “abuse” the entire world had suffered under US hegemony since World War II. The situation had only aggravated since the end of the Cold War, Xinhua argued. “Instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas.” To further its own unbridled ambitions, the US stoked “regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies”, Xinhua explained.

The Xinhua commentary warned that with US society and economy collapsing, Washington was now tempted to intensify the abuse of the rest of the world in order to save the US. “Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated. A new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing.” Xinhua concluded by suggesting that the PRC, being inherently a developing country, is the rising power best suited to lead this global transformation and de-Americanization.

Beijing has long recognized that any confrontation with the US would inevitably lead to major economic crises, a series of conflicts world-wide and possibly a global war against the US. To sustain this global conflict, the PRC would need huge quantities of hydrocarbons, rare metals, other natural resources and even agricultural products; and these could only be secured for it as a result of a China-dominated Africa. Source: http://www.tralac.org 

X-Ray Scanners – WTO panel rules on EU-China dumping row

Nuctech Fast Scan Vehicle and Container inspection system

Nuctech Fast Scan Vehicle and Container inspection system

Part of the problem here is that the Chinese have a significant market share in this type of equipment. In a short period of 10 years they have outstripped some of the more fancied American and European players in this business. While the dispute in question raises ‘ethical’ questions of the Chinese, it does seem to be a matter of sour grapes.

China’s anti-dumping duties on imports of x-ray security scanners from the EU violated global trade rules, according to a WTO panel ruling that was issued yesterday. [WTO Dispute Settlement, DS425]

Brussels brought the dispute in July 2011 after Beijing imposed duties ranging from 33.5 to 71.8 percent on the x-ray scanners. (See Bridges Weekly, 25 January 2012) The EU exports approximately €70 million of these scanners to China annually.

China imposed the duties after the EU had applied anti-dumping duties on Chinese cargo scanners one year earlier, which some viewed at the time as a “tit-for-tat” move.

The panel report primarily focused on procedural issues in Beijing’s investigation, specifically regarding how China calculated the anti-dumping margin, loosely defined as the difference between the price – or cost – in the foreign market and the price in the importing domestic market.

Beijing included more expensive “high-energy” scanners – which do not “look remotely like” the cheaper scanners, according to the panel report – in calculating the average domestic price, even though only cheaper “low-energy” scanners were exported. The panel found that this price comparison was “not consistent with an objective examination of positive evidence” required under WTO rules.

The panel also found that Beijing did not comply with certain due process and transparency requirements before imposing the duties.

The panel did not rule with the EU on all points, however, noting that Brussels had not established that Beijing had acted inconsistently in certain other procedural matters.

“I expect China to remove the measures immediately,” EU Trade Commissioner Karel De Gucht said on Tuesday in response to the panel ruling. “I will not accept tit-for-tat retaliation against European companies through the misuse of trade defence instruments.”

Under WTO rules, both sides have 60 days to appeal the ruling. In a statement, China’s Ministry of Commerce indicated that they would make a serious assessment of the case and reserved the right to appeal.