BERLIN/BEIJING/WASHINGTON | | chinausa

BERLIN/BEIJING/WASHINGTON (Own report) - A leading German economist is warning there could be a military escalation of the US economic war. "The trade war could lead to an arms race," according to Gabriel Felbermayr, President of the Institute for the World Economy, in Kiel. His assessment is based on the Trump administration's escalating aggression. Last week, the administration expanded its embargo against Huawei to five other high-tech companies from the People's Republic and is now considering whether it should force its EU 5G suppliers to dismantle their Chinese subsidiaries. German companies, such as the Munich based Infineon, which, in the meantime, has partially joined the US boycott, are also being targeted. Therefore, Beijing could add its name to the list of companies causing damage to China for political reasons and thus threaten them with countermeasures. Experts are warning that the USA is merely driving the Chinese high-tech industry into becoming independent which, in the long run, would make it a very powerful competitor. more…

BERLIN/BEIJING/WASHINGTON | | usachina

BERLIN/BEIJING/WASHINGTON (Own report) - Infineon is the first German company to be caught between the firing lines of the US economic war against China. Yesterday, the Trump administration began to enforce the implementation of its boycott against the Chinese Huawei telecommunication group that it had announced just last Wednesday. The US government seeks to ruin one of China's major companies, Huawei, to prevent the continued rise of People's Republic. Infineon is now forced to halt its supplies of USA-produced components to Huawei. A serious conflict with Beijing would be fatal for the company. One-quarter of Infineon's sales are currently generated in China - significantly more than in any other country. It is also engaged in major future-oriented projects in that country. Observers warn that the Trump administration could force the German industry to choose between the USA and China - as in the case with Iran. The DAX companies generate nearly 22 percent of their sales in the USA and 16 percent in the People's Republic. It is, of course, also conceivable that the US economic war will backfire. more…

BERLIN/ROME/BEIJING | | chinaitalien

BERLIN/ROME/BEIJING (Own repot) - The West's power struggle against China is provoking new tensions between Germany and Italy. According to reports published last week, the Italian government plans to conclude a cooperation agreement with Beijing within the framework of the "New Silk Road" (Belt and Road Initiative, BRI) to benefit from Chinese investments in Italy's infrastructure, e.g. the Trieste port and Italy's power grid. China has already invested in several of the EU's periphery countries, heavily affected by Berlin's austerity dictate - such as Greece and Portugal - which gladly welcome these investments as relief. The German government is now beginning to make moves against this. Berlin seeks to prevent the People's Republic of China from increasing its influence within the EU and fears inner-European resistance if it takes aggressive action against its East Asian rival. Fierce debates are expected at the EU summit at the end of next week and at the EU-China summit on April 9. more…

BERLIN/BEIJING/WASHINGTON | | usachina

BERLIN/BEIJING/WASHINGTON (Own report) - An opening is emerging for Berlin to be able to include Huawei in Germany's 5G grid installation - contrary to the massive US campaign. The President of the Federal Office for Information Security (BSI) Arne Schönbohm declared that "an anti-espionage treaty" between Germany and China could help, open the possibility of Huawei's participation in setting up the grid. Chancellor Angela Merkel is currently seeking to conclude such an agreement. The industry is in favor of using Huawei Technology, because it promises to be the fastest and most cost-effective construction of the strategically important 5G grid. Experts warn that without Huawei, Germany could lag at least two years behind in the development. Meanwhile it has become known that for years, the NSA has been eavesdropping not only on China's president but on Huawei as well. Allegedly, US spies cannot show any evidence of Huawei being involved in espionage operations - even after having read the emails of numerous employees and those of the company's board chair. more…

Five Eyes

BERLIN/WASHINGTON/BEIJING | | chinausa

BERLIN/WASHINGTON/BEIJING (Own report) - In the dispute over boycotting the Chinese Huawei corporation, the German government is considering joining a campaign of the "Five Eyes" intelligence-sharing network, it was reported in Canada and Australia. According to the media, intelligence chiefs of the five English-speaking "Five Eyes" countries launched a boycott campaign last July under US leadership. The campaign seeks not only to put pressure on the governments of Five Eyes members Great Britain and Canada, which - for economic reasons - have initially been reluctant to boycott Huawei, but also to increase the pressure on the Germany and Japan. Experts in Australia speculate that, in return for its participation in the boycott, Berlin could become an accepted FIVE Eyes member, something Germany's Federal Intelligence Service (BND) has been striving to do for years. To "maintain their own technology competence," EU companies should develop 5G, according to Berlin. German managers, however, are up in arms, fearing falling far behind and never catching up with China. more…

BERLIN/WASHINGTON/BEIJING | | usachina

BERLIN/WASHINGTON/BEIJING (Own report) - Strong criticism is coming from Germany's business community, as the German government prepares to exclude the Chinese company Huawei Technologies from the development of Germany's 5G network. According to media reports, the government tender for the 5G will be formulated in such a way that Huawei cannot apply. This is based on allegations of espionage by US intelligence services, for which, not a single piece of evidence has been presented anywhere in the world. The Trump administration is seeking to shut Huawei and other Chinese high-tech companies out of the US market, to drive them bankrupt. The US is calling on its allies to join; and in mid-December, a US delegation visited Germany's foreign ministry to apply pressure. This aggression is aimed at halting China’s ascendance. Protest is being raised from Germany's business community: Huawei is leading in 5G technology and a functioning 5G network is imperative for using state-of-the-art technologies of the future. Managers warn that excluding Huawei would mean higher costs and a painful setback in Germany's 5G development. more…

BERLIN/WASHINGTON/BEIJING | | usachina

BERLIN/WASHINGTON/BEIJING (Own report) - With the USA escalating its measures against Huawei Technologies, Berlin is faced with deciding whether to continue its cooperation with that Chinese telecommunications company. Until now, the competent German administrations have been considering cooperating with Huawei for the development of the important 5G mobile communications standards. With its experience, the Chinese company could reliably set up the German network rather quickly and at favorable costs. For German business, it is of utmost importance not to fall behind even further in the development of future state-of-the art technologies. Washington, however, is pushing for the Chinese company to be excluded. The Trump administration - without any evidence, according to experts - is accusing it of having close ties to the Chinese government and intelligence agencies. Washington is indeed seeking to damage Huawei seriously - the world’s largest network provider and second largest smartphone producer - to halt China’s ascendance. Berlin must decide whether it wants to join that battle against Huawei in the economic war against Beijing. more…

BERLIN/BEIJING | | china

BERLIN/BEIJING (Own report) - For decades, Uighur separatists, under prosecution currently by the Chinese authorities in Xinjiang, have had their foreign operational base in the Federal Republic of Germany. Exiled Uighurs in Munich had propagated the secession of western China's Xinjiang Autonomous Region - "East Turkestan" - already in the 1970s over the US propaganda broadcaster Radio Free Europe/Radio Liberty (RFE/RL). Since then, the Federal Republic of Germany has become "the central outpost and the most important base for promoting the cause of Eastern Turkestan independence," according to a study on the Uighur exiles, with Munich hosting the World Uighur Congress (WUC), the central outpost of a global Uighur exile network. Its leadership is in contact also with Uighurs in Central Asia and Chinese dissidents in exile in India and maintains relations with officials in Berlin and Washington. A study presented by the US military, concludes that Uighur separatism will hardly be successful - at least, not without outside support. more…

BERLIN/BEIJING | | china

BERLIN/BEIJING (Own report) - The German government is participating in the West's campaign against China's anti-terrorist measures in its Xinjiang autonomous region. The Chinese authorities are taking massive repressive measures against Uighur terrorists and their milieu. They are being held in camps, which Beijing says are "educational centers." Western governments are calling them "re-education camps." Information on how many are being held, range from a few tens of thousands to a million. During his inaugural visit to that country, Germany's Minister of Foreign Affairs, Heiko Maas, publicly criticized China on this question. Beijing objected to Berlin's interference in its domestic affairs. Over the past few years, hundreds and possibly thousands have fallen victim to Uighur separatist terrorism against Han Chinese. Uighur jihadis are also fighting within the ranks of the Islamic State (IS). The Uighur secessionists, who seek to separate Xinjiang - calling it "East Turkestan" - from China, are receiving support from western countries, including Germany. more…

BERLIN/BEIJING/WASHINGTON | | usachina

BERLIN/BEIJING/WASHINGTON (Own report) - Leading German business circles are calling for diminishing economic dependence on China. Even though that country is a "dynamic market" - German companies' largest trading partner and their third largest investment site - it is in a "system rivalry" with the West, according to a recent paper published by the Federation of German Industries (BDI). The BDI is underlining the importance "of minimizing existing dependency" on the People's Republic of China, as Washington is stepping up its economic war against Beijing. German businesses fear that the Trump administration could impose sanctions - like those in the case of Iran - and are, therefore, calling for a gradual withdrawal from China. At a business conference, currently taking place in Jakarta, German business representatives and the Minster of the Economy, Peter Altmaier, are pursuing their search for alternative sites in Southeast Asia. Meanwhile, a prominent US general has predicted that the United States could possibly be at war with China within 15 years. more…