Germany’s decision to send warships through Taiwan Straits: All harm, no gain

Planning to send warships to pass through the Taiwan Straits, Germany is abandoning its prudent and rational approach of over 20 years by undertaking a move with nothing to gain and everything to lose.  

Two German warships, the frigate Baden-Wuerttemberg and the replenishment ship Frankfurt am Main, are set to pass through the Taiwan Straits in the middle of this month, becoming the first German naval vessels to do so in 22 years, Spiegel magazine reported on Saturday. The head of the German Bundestag's Foreign Affairs Committee, Michael Roth, posted on X that the move aims to strengthen "freedom of navigation and stability" in the region. 

Does "freedom of navigation" really necessitate choosing a route that is highly sensitive and clearly offends China's core interest? Both the German government and military are fully aware of the political implications of crossing the Taiwan Straits. They know that, for China, such a move constitutes a provocation. Respecting each other's core interests and major concerns is essential for a comprehensive strategic partnership. Is today's Germany about to forsake its previous political maturity?

Germany has recently increased its presence in the Asia-Pacific region. This year, it has not only signed a new defense agreement with Japan but also witnessed its defense minister make a historic visit to the Philippines, with plans to sign a defense cooperation agreement with Manila later in 2024. 

Behind this series of moves lies the push from the US and NATO. The US has been endeavoring to expand NATO into the Asia-Pacific region. However, this planning is inconsistent with NATO's original mandate. After all, NATO stands for "North Atlantic Treaty Organization," not "North Atlantic-Pacific Treaty Organization." Consequently, a roundabout tactic has emerged - a growing number of individual NATO members are strengthening their military and defense cooperation with the Asia-Pacific region through joint military drills or by deploying aircraft carriers and warships. This trend does not occur under NATO's official banner; yet, in practice, it results in NATO's influence extending into the Asia-Pacific. 

NATO countries' relevant strategies often reflect US policy, and it is not sure how much control other members really have, a retired US official told the Global Times recently. 

If Germany aims to showcase its military presence in the Asia-Pacific, sending warships through the Taiwan Straits is the most ill-advised approach. This action appears to be primarily a favor for the US, signaling a supportive stance toward the US' tactics regarding the Taiwan question. However, Germany is unlikely to gain any benefits in return. Why is the US urging its allies to invest more efforts in the Asia-Pacific? Because it is bogged down by multiple crises and is struggling to maintain high-intensity military deployments there on its own. Therefore, Washington is utilizing its allies to create disturbances in the region to distract China. 

If Germany does not take this step and simply continues its consistent policy of the past 22 years, there will be no significant loss. Its position within NATO and its relationship with the US would remain unchanged. However, if German warships were to sail through the Taiwan Straits, it would damage Germany's ties with China. 

From any perspective, sending German warships through the Taiwan Straits is a move that offers all harm and no gain. Provoking China over its core interests does not seem like a decision made by a mature major power. There is no reasonable reason for Germany to do so and it still has time to reconsider. 

Spain needs to reconsider position on EU’s proposed tariffs on Chinese EVs, says Spanish PM

Spain needs to reconsider its position on EU’s proposed additional tariffs for Chinese electric vehicles (EVs), said Spanish Prime Minister Pedro Sanchez on Wednesday, amid his visit to China.

“Frankly, I think we need to reconsider - all of us, not only [EU] member states, but also the [European] Commission - our position toward this movement,” Sanchez said at a press conference being held on Wednesday at Kunshan City, East China’s Jiangsu Province, responding to a media question on whether Spain is reconsidering its position on proposed tariff expansion on Chinese electric vehicles.

“As I said before, we don’t need another trade war,” Sanchez said. He noted that the Spanish side wants to play a constructive role in building bridges between the EU and China, and tries to find a solution and compromise between China and the EC.

Sanchez reiterated that trade wars are inappropriate and we must find a negotiation solution to help strengthen the bilateral relationship between China and the EU, which he believes is fundamental for both Chinese and European societies.

“I am grateful for the constructive attitude of the Chinese authorities,” he said.

Sanchez’s four-day visit to China from September 8 to 11, 2024 covered cities including Beijing, Shanghai and Kunshan. The Wednesday press conference was held at Kunshan Mondragon Industrial Park, an industrial and technological cluster where some Spanish companies are located.

Sanchez remarked that he noticed “the enormous growth potential between Spain and China.”

“This spirit of cooperation transcends the bilateral relationship between Spain and China, and reaches the European Union,” he said in Spanish.

International fashion brands eye China’s booming coffee market

International fashion brands in jewelry, handbags, and apparel are now eyeing opportunities in China's booming coffee market, starting to expand their businesses to cross-industry products and services. Chinese experts attribute the new market evolution to China's widening opening-up which has created vast opportunities for global corporations.

ROCK&RIDE, a US-based jewelry brand, told the Global Times on Tuesday that it has expanded its offerings this year by adding coffee services and a dedicated "coffee space," with its first coffee store officially launched in downtown Beijing.

The "coffee space" named ROCK&RIDE TASTE, was launched in August within Beijing's 798 Art District. Currently, ROCK&RIDE TASTE offers a limited menu of four beverages including three coffee options and one caffee-tea beverage, all served cold.

"China's coffee market is widely acknowledged for its vast growth potential. Coffee and tea are popular beverages globally, and the relationship between the two is not a zero-sum game in China." the CEO of ROCK&RIDE told the Global Times on Tuesday. 

"We believe that the growing demand for coffee in China doesn't necessitate altering consumers' existing beverage preferences. Instead, it offers an additional choice for consumption and experience," he said.

Recently, several international brands have shown a strong interest in China's coffee market, exploring cross-industry opportunities.

Vivienne Westwood operated its new caféat Beijing's Sanlitun Street on August 8. On July 28, Coach officially launched its first café in China, located in Shanghai's Huangpu district.

In response to market demand, another Vivienne Westwood café in Beijing is expected to open for business at the year-end, a representative from Vivienne Westwood Café told the Global Times on Tuesday.

Many consumers told the Global Times that the coffee products offered by the globally well-known brands are appealing to them. They enjoy the combination of their favourite fashionable brands with coffee, making it a must-have purchase.

"China's market is highly diverse, open, and inclusive. It's not just coffee but also tea beverage that has seen rapid growth in business," Bian Yongzu, executive deputy editor-in-chief of Modernization of Management magazine, told the Global Times on Tuesday. 

He noted that this growth underscores the strong adaptability of Chinese consumers, especially the younger generation to the evolving market trends.

Bian said that foreign brands' swift decision-making in China is closely tied to the country's commitment to sticking to high-level opening-up.

A recent report revealed that China's coffee industry reached 265.4 billion yuan ($32.29 billion) in size last year, with market projections estimating it to grow to 313 billion yuan in 2024. The industry's compound annual growth rate (CAGR) over the past three years reached 17.14 percent.

Additionally, the report stated that 930 million cups of coffee were consumed nationwide through delivery platforms. Over the past four years, coffee delivery orders have experienced a compound growth rate of 66 percent.

"The Chinese government is intensifying efforts to fully implement national treatment for foreign-funded enterprises. Initiatives like reducing the negative list for foreign investment, simplifying the investment process, and facilitating smoother capital flows have boosted the efficiency of foreign investment in China while cutting costs," Bian said.

My studies here in China are equipping me with knowledge that I can apply in Africa, says former state minister of Ethiopia

Editor's Note:

The 2024 Forum on China-Africa Cooperation (FOCAC) Summit will be held in Beijing from September 4 to 6. The theme of this year's summit is "Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future." In light of this, the Global Times launches a series of China-Africa stories, including interviews with political leaders, stories of exchanges between young people from China and African countries, and intensive cooperation in various fields. Through these stories, we will see how China and Africa are deepening their ties and building a brighter future together.

In this instalment, Global Times reporter Zhao Yusha talked with Endalkachew Sime, PhD student at Peking University, ex-state minister of planning and development of Ethiopia and ex-secretary general of the Ethiopian Chamber of Commerce and Sectoral Associations.
Endalkachew Sime, once the state minister of Ethiopia, is now a PhD candidate at Peking University in China.

When discussing China's cooperation with Africa, Sime said it is just like his studies in Beijing.

"My studies here in China are equipping me with the knowledge that I can apply in Africa. This cooperation extends beyond mere financial transactions; it's about long-term development and capacity building," Sime, currently a student from Peking University Institute of South-South Cooperation and Development, told the Global Times.

With an approximate population of 126.5 million people (2023), Ethiopia is the second most populous nation in Africa after Nigeria, and one of the fastest-growing economies in the region, according to the World Bank.

Ethiopia stands at the forefront of the China-Africa strategic partnership.

"China has been the largest trading partner to Ethiopia and a top source of foreign direct investment (FDI) in the country, accounting for nearly 50 percent of all FDI inflow into the country," Gebeyehu Ganga, director general of the Middle East, Asia, and Pacific Affairs at the Ethiopian Ministry of Foreign Affairs, said in June this year, according to the Xinhua News Agency.
For Sime, there's still much potential for cooperation between the two countries. "Ethiopia has significant potential for future cooperation with China, particularly in areas like infrastructure, power, and trade. Specifically, there is potential in value-added manufacturing, where Ethiopia can convert its immense agricultural and natural resources into finished goods for export to the world's fastest-growing domestic market," Sime, who formerly served as the state minister of planning and development of Ethiopia and secretary general of the Ethiopian Chamber of Commerce and Sectoral Associations, told the Global Times.

Sime recalled that he first came to China in 2004, and has witnessed the development trajectory that China has undergone in the past decades. Such experience sparked a strong interest in him to study academically and professionally in this country.

"Many people describe China's development as a miracle, but there's no such thing as a miracle. If you explain it well, it's something that can be replicated. If you frame it as a miracle, then it becomes unrepeatable. That's why I came here - to learn and see," he said.

"China has managed to plan and implement its development strategy consistently over a long period. I compared this with my own country, which had a very different economic background three decades ago," said Sime.

He said Ethiopia started to follow a similar model to China, and initially had an encouraging start. However, due to various reasons, the development could not be sustained.

"So having a solid state formation process and strong leadership are, in my view, critical elements that developing nations can learn from China. There might be other aspects to consider, but these are the two that stand out to me," said Sime.

Ethiopia was among the first batch of African countries to sign the "Belt and Road Initiative Cooperation Documents" to jointly build the China-proposed Belt and Road Initiative (BRI).

"What sets the BRI apart when it comes to Africa's engagement with the rest of the world? Let me provide a specific example." Sime said. "Ethiopia, for instance, was seeking financial access for critical projects, and the most flexible and accessible source of finance turned out to be the BRI."

He praised the BRI's financing as more flexible and it considers the developmental challenges that Africa faces. "However, this does not mean that projects are financed without rigorous screening. There are thorough banking and financial procedures that must be followed. The flexibility is in addressing Africa's needs better than other financing bodies," said Sime.

Over the last decade, many African projects have benefited from the BRI's flexibility. Compared to other engagements, the BRI gives African countries more freedom to choose projects that align with their national interests and development goals compared to other financing options, according to Sime.

In recent years, green-eyed about China's cooperation with African countries, some Western politicians and institutions have hyped that through investment, loans, political influence, and migration, China is utilizing an inventive form of "neocolonialism" on African nations.

In response, Sime said that "no one enters a partnership for a free lunch. Africa, like any other region, has its interests, and so do China and Western countries. The essence of the deal is cooperation based on mutual benefit and nonintervention, which is gaining acceptance among many African nations."

Why do these countries choose such partnerships? It's a decision made through rigorous studies and evidence-based processes. Africa partners with all parts of the world based on its preferences and priorities, Sime noted.

Two Chinese airlines receive first C919 aircraft, marking a new phase of multi-user operation of the China-made jet

Two Chinese airlines, Air China - the country's flag carrier  - and China Southern Airlines, welcomed their first China-built large passenger aircraft C919 in Shanghai on Wednesday, marking a new phase of multi-user operation for the C919 jet.

The deliveries came after more than one year's operation by China Eastern Airlines, the first global customer for the aircraft. 

Chinese experts said that the mass deliveries on Wednesday represented a milestone for the large-scale market operation of China's self-developed large passenger aircraft C919, and it will also help the aircraft win more market share in the Chinese aviation sector.

The hangar in Commercial Aircraft Corporation of China (COMAC), the manufacturer of C919, in Shanghai was filled with joyful atmosphere on Wednesday night, with people from across the country attending the event. A red screen was set in front of the hall, with the two airlines' logos on either side of the screen.

As the hangar door slowly opened, the first Air China C919 aircraft painted with the Five-Star Red Flag, China's national flag, and the first C919 aircraft of China Southern Airlines painted with red kapok appeared on the same stage. The deliveries mean that the C919 has entered a new stage of multi-carriers' operation. The C919 will operate more routes and cover more areas, and will bring more vitality to China's civil aviation and even global civil aviation, He Dongfeng, chairman and Party chief of COMAC, said at the ceremony.

Up to now, a total of 9 C919 aircraft have been delivered to customers. Among them, the C919 aircraft of China Eastern Airlines, the first user, has been operating smoothly for 15 consecutive months since its first commercial flight, flying five scheduled routes, and has carried out more than 3,600 commercial flights and 10,000 flight hours.

If the past year of China Eastern's C919 flights was considered an initial trial operation, the latest deliveries indicated that the C919 is now ready for full-scale commercial operations and will soon be fully integrated into the domestic civil aviation market, Lin Zhijie, an independent market watcher, said on Wednesday. 

Following the twin deliveries of the C919, Darren Hulst, Boeing vice president of commercial marketing, said that it is a good thing to have market competition, adding that the big market has room for multiple players. 

The C919 is a large civilian aircraft developed in accordance with international civilian aviation regulations and with independent intellectual property rights, and it is regarded as a model to grab a share of the global civilian aviation market dominated by Boeing and Airbus. Over the past year, the aircraft began flying routes such as the one between Shanghai and Beijing, operating across the Chinese Lunar New Year travel rush, and also debuted at the Singapore Airshow. 

As the first global customer of C919, China Eastern received its seventh C919 plane in July. Currently, China Eastern's C919 fleet has completed more than 3,000 flights, facilitating more than 400,000 passenger trips, according to data China Eastern shared with the Global Times. 

It is only a matter of time before giants like Air China and China Southern Airlines choose the C919 aircraft, and personally, I think that time is coming very quickly, said Wang Ya'nan, chief editor of Aerospace Knowledge magazine. 

Wang noted that the recent operations by China Eastern have demonstrated the market potential to these major airlines, and further deliveries will help the C919 secure a larger market share.

China Eastern took the lead in signing an agreement with COMAC to order an additional 100 C919 aircraft, beyond an initial five. Air China announced in April that it had ordered 100 C919s, to be delivered from 2024 to 2031. In addition, 100 C919s have been ordered by China Southern Airlines.  

Earlier, there was positive news for the C919's potential entry into the European market. The South China Morning Post reported that China's civil aviation authorities have grown more optimistic about receiving EU certification in 2025, following an on-the-ground inspection of the C919 by EU regulators in July in Shanghai.

Regarding the expansion into foreign markets, Li Yuan, an independent market observer, emphasized that more efforts are needed to promote the C919 internationally. He noted that the aircraft manufacturer is not just selling a product but offering a full life cycle guarantee, meaning that subsequent services must be robust and responsive.

White paper shows China’s progress in energy transition

China has made notable progress in energy transition over the past decade, with "historical breakthroughs" achieved in green and low-carbon energy development as the country is moving toward building a clean, diversified, secure and resilient energy supply system, according to a white paper titled "China's Energy Transition" released by the State Council Information Office on Thursday.

The white paper listed an array of impressive figures that document milestones in China's energy transition in the past decade and highlight the country's outstanding contribution to the global green agenda. For example, last year, electricity generated by clean energy accounted for nearly 40 percent of China's total electricity generation. Also, the country's exports of wind and photovoltaic (PV) products helped other countries reduce carbon dioxide emissions by about 810 million tons in 2023. 

Observers said that China's energy transition will play an exemplary role, illustrating a path that is cost-effective, economically feasible and brings far-reaching effect to the global energy industry. It also proves that China's overwhelming edges in renewable energy is stemming from continuous innovation and a complete industrial chain, rather than certain Western fallacy of subsidies-driven growth.

The white paper also offers a detailed elaboration on China's commitment to fulfilling its responsibility as a major developing country as well as its willingness to work with other countries to keep global energy industrial and supply chains stable and maintaining energy security in an open environment. 

Historic achievements 

According to the white paper, China has been fast tracking clean energy development and there's a growing share of green energy in China's energy mix.

Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times that over the past decade, "China has led the global energy transition, not only in the speed of its transformation but also in the expansion of new-energy production capacity and output." 

Building on the momentum, Chinese officials and industry insiders have expressed confidence that China, the world's largest energy producer and consumer, has the capacity and is steadily marching toward its "dual carbon" goal of reaching peak carbon emissions by 2030 and attaining carbon neutrality by 2060. 

Industry insiders stressed that China's successful energy transition course plays an exemplary role for developing countries and sets a global model. It is also a lesson to other developed countries, which - amid global energy shortage in the last few years— have shown certain level of retreatment from their climate goals, Cao Heping, an economist at Peking University, told the Global Times on Thursday. 

An engine for global energy transition

China's green energy development has become an engine for global energy transition, and the country's new energy industry has also "added to the global energy supply and eased global inflation pressures," it noted. 

The white paper cited data from the International Energy Agency as saying that from 2014 to 2023, the global share of non-fossil fuels in energy consumption rose from 13.6 percent to 18.5 percent, with China contributing 45.2 percent to this increase. Over the past decade, the average cost per kilowatt-hour of global wind power projects has decreased by more than 60 percent, and PV power projects by more than 80 percent. The reductions are largely attributable to China's efforts.

Analysts said that the white paper provides a fresh rebuttal to Western smearing campaign on China's new-energy industry, which it claimed was stimulated by subsidies. "It laid bare that the West-concocted 'overcapacity' tag on Chinese industries does not stand a ground and is motivated by hegemonic mindset," Cao said. 

Lin noted that it also sounds the alarm to Western countries which plan to slap tariffs on China's new-energy exports in the name of "industrial overcapacity." It warns them that this politicization of economic issues will "heavily hinder the global green transition, hinder energy structure optimization, and delay climate change efforts," Lin said.

The white paper stressed that China opposes all forms of unilateralism or protectionism, and rejects all forms of "decoupling" and the "small yard and high fence" approach. It calls for major countries to "focus more on the future of the earth and humanity and act in a responsible manner by ensuring global energy security, promoting green development and maintaining market order."

Chinese airlines report improving business revenue in first half year, overseas flight routes expansion widely expected

Chinese airlines continue to show strong interest in expanding their global market presence, with some carriers doubling their overseas traffic volumes, and market watchers said that the airlines will maintain a fast recovery pace for flying international routes. 

Data released by the information provider VariFlight on Sunday showed that the actual number of passenger flights on overseas routes carried by Chinese airlines was 130,000 in the just concluded two-months' summer travel rush ended on Saturday, an increase of 59 percent year-on-year in 2023, recovering to more than 70 percent of the corresponding period in 2019. 

The data could be lifted further given the concrete measures taken by the airlines, and rising overseas travel demand, Gong Yiting, head of branding department of VariFlight told the Global Times. 

The remarks came after Chinese airlines reported narrowed losses in the released fiscal reports of the first half of this year brought by the rising demand, highlighting a stable recovery of the aviation industry. 

In detail, the revenues of the three major airlines - Air China, China Eastern Airlines and China Southern Airlines - reached 228.509 billion yuan ($32.22 billion) in the first half of this year, led by China Southern, which loss was narrowed by more than half. 

Air China and China Eastern Airlines reported revenues of 79.52 billion yuan and 64.199 billion yuan, respectively, with year-on-year increases of over 30 percent and nearly 30 percent. Each airline's net losses narrowed by nearly 20 percent and over 50 percent year-on-year than the same period of last year, per fiscal reports. 

In addition, the total revenue of four private carriers of Hainan Airlines, Spring Airlines, Juneyao Airlines and China Express in the first half of the year exceeded 50 billion yuan, and net profit totaled 1.24 billion yuan.

Meanwhile, the international air passenger transport market saw continued rapid recovery in the first half of the year. 

Data from the Civil Aviation Administration of China showed that the recovery level for five consecutive months since February this year has exceeded 80 percent of the same period in 2019.

Airlines have also continued to make efforts to grow international routes, such as China Southern said on Friday that its overseas flights have recovered to about 80 percent of the same period in 2019, and it will strive to fully resume routes from Guangzhou to Australia, New Zealand, and Southeast Asia.

Spring Airlines reported that the recovery rate for its Japanese routes is nearly 100 percent. The airline currently flies to eight destinations in Japan, surpassing the peak levels of 2019.

Airlines are also actively planning their expansion plans for the whole year. Hainan Airlines said it will strive to restore the weekly flight volume of international routes to 100 percent of the average weekly flight volume of international routes in 2019.

Juneyao Airlines said it achieved a growth rate of more than 20 percent compared with the same period in 2019 in terms of the overseas traffic, and it will continue to expand its operations in the Southeast Asian and European markets.