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German proposal for Huawei curbs triggers telecom operator backlash

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On Thursday night, a spokesman for the Chinese Embassy in Germany expressed strong dissatisfaction and resolute opposition to Germany’s decision to exclude Huawei and ZTE telecom equipment from the 5G network, warning that the move will seriously undermine mutual trust between the two sides and also affect future cooperation between China and the EU in related fields.

Chinese experts who have evaluated the issue also said on Friday that Germany’s decision shows that it is under further pressure from the US and the EU, noting that excluding Chinese components from the 5G network will have a significant cost and hinder the country’s communications development.

In a preliminary agreement due to “security concerns”, the German government and the country’s telecoms operators have agreed in principle on steps to remove components made by Chinese companies from the country’s 5G mobile network over the next five years, Reuters reported on Thursday.

In response, the Chinese spokesperson said that Huawei, ZTE and other Chinese communications companies have long been operating in Germany in accordance with the law and have made a positive contribution to Germany’s digitalisation process.

The alleged cybersecurity risk is “nothing more than an excuse”, the spokesperson said, adding that it is essentially the behaviour of individual countries to pressure their competitors in order to maintain their own scientific and technological hegemony. In fact, no country has yet provided conclusive evidence of the existence of safety risks in the equipment of Chinese companies, the spokesperson added.

“The German side’s announcement of the decision during the NATO summit in Washington has caused China to seriously question the independence of Berlin’s decision-making,” the spokesman said.

The Chinese official said Germany’s move was “blatant political discrimination” that seriously undermined mutual trust between the two sides and would also affect future China-EU cooperation in related areas.

“Germany’s move can be seen as politicising economic cooperation, as it is now facing more pressure from the US and the EU,” Sun Yanhong, a senior research fellow at the Institute of European Studies of the Chinese Academy of Social Sciences, told the Global Times on Friday.

Sun noted that Germany’s digital infrastructure is relatively backward, while Huawei and ZTE’s equipment is leading in terms of technology, integrated solutions and low-cost products, which will be a “loss” for Germany.

“The cost of the transition is expected to be significant, which will limit the development of all areas of the country’s digital economy, including smart driving, smart healthcare and production automation factories,” the expert warned.

Meanwhile, the Chinese embassy spokesperson stressed that Beijing will take necessary measures to protect the legitimate interests of Chinese companies.

Chinese Foreign Ministry spokesman Lin Jian also said at a press conference on Thursday that China hopes Germany will respect facts and make reasonable decisions, and urges the European country to create a fair market environment for enterprises from all countries, including Chinese enterprises.

DIPLOMACY

CK Hutchison shares fall after China criticizes Panama port sale

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Shares in Hong Kong-based conglomerate CK Hutchison fell 5% on Friday after China criticized the sale of its Panama Canal ports and suggested it should “think twice” about a $22.8 billion deal with US asset manager BlackRock.

A strongly worded commentary, which first appeared in Hong Kong’s Beijing-backed newspaper Ta Kung Pao and was reposted late Thursday by China’s top office in charge of the territory’s affairs, accused the US of using “despicable means” to pressure the deal.

The article stated, “[Critics] say this is a spineless, fawning, profit-seeking move that sells out integrity for personal gains and disregards national interests. [It is an act of betraying and selling out all the Chinese people].”

It emphasized that China’s maritime transport and trade would be hindered by the US and that CK Hutchison should “think twice” about “what position and side it should be on.”

Dan Baker, a senior equity analyst at Morningstar, said concerns over whether the deal would be completed after securing approval from the Trump administration were reflected in Friday’s share price decline, but that the move might be an “overreaction.”

“To the extent that the company still has assets in China, if the Chinese government is angry with them for making this sale, there is probably some potential investor concern about what might happen to their businesses that are still there,” Baker said.

Mainland China and Hong Kong accounted for about 14% of CK Hutchison’s 2023 revenues, while revenues from the UK and Europe accounted for about 50% of that.

CK Hutchison did not immediately respond to a request for comment. Its shares had risen more than 20% in Hong Kong when the deal was first announced last week.

At the time, Chinese Foreign Ministry Spokesperson Lin Jian declined to comment on the sale but denied Trump’s claims that China controlled the canal.

Under the agreement in principle, 43 ports owned by billionaire Li Ka-shing’s CK Hutchison company, located at both ends of the Panama Canal, will be sold to a consortium that includes BlackRock.

These ports include those in the UK and Germany, as well as Southeast Asia, the Middle East, Mexico, and Australia.

According to the Financial Times, BlackRock CEO Larry Fink briefed senior officials from the Trump administration, including the President and Secretary of State Marco Rubio, to secure their support for the takeover.

The deal was planned a few days after Donald Trump took office. The President said in his inaugural speech: “The Panama Canal is operated by China… and we are taking it back.”

Li, who retired as chairman of CK Hutchison in 2018 and still serves as a senior advisor, was actively involved in the negotiations.

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China, Russia, Iran unite in call to end illegal sanctions

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China, Russia, and Iran, following trilateral talks in Beijing on Friday, called for an end to “illegal and unilateral sanctions” against Tehran, as well as “threats of force.”

In a joint statement released by Chinese state television CCTV, the three countries said that diplomatic engagement and dialogue based on “mutual respect” were the “only effective and viable option” to address the issue of Iran’s nuclear program.

“The three countries emphasized that relevant parties should be determined to eliminate the root causes of the current situation and abandon sanctions and pressure, as well as military threats,” the statement continued.

The statement did not explicitly mention the US, but the meeting followed Iran’s rejection of Donald Trump’s proposal to restart nuclear negotiations. Tehran said it was not fair to negotiate under conditions where Washington was implementing a policy of maximum pressure.

The meeting, chaired by Chinese Vice Foreign Minister Ma Zhaoxu, was attended by Russian Deputy Foreign Minister Sergey Ryabkov and Iranian Deputy Foreign Minister Kazem Gharibabadi.

During his first term as president, Trump withdrew the US from the international agreement under which Iran agreed to limit its nuclear program in exchange for the lifting of sanctions.

Last week, Trump proposed restarting negotiations in a letter to Iran’s Supreme Leader Ayatollah Ali Khamenei, which was delivered by the United Arab Emirates. In an interview a day after the letter was delivered, he said that if Tehran did not want to negotiate, the US would have to “intervene militarily.”

Iranian President Masoud Pezeshkian said that he would not negotiate under “threat” and would not submit to the “orders” of the US.

Friday’s meeting took place before a conference at the United Nations Security Council on the same day to discuss Iran’s growing uranium stockpile. Earlier this month, the International Atomic Energy Agency expressed new concerns about Iran’s uranium enrichment activities, stating that these activities were approaching weapons-grade levels.

In a joint press conference with his Russian and Iranian counterparts, Sergei Ryabkov and Kazem Gharibabadi, Chinese Vice Foreign Minister Ma Zhaoxu said: “We emphasized the importance of UN Security Council Resolution 2231 and its timeframe, and called on relevant parties to avoid actions that would escalate the situation and to jointly create a favorable atmosphere and conditions for diplomatic efforts.”

The resolution Ma referred to endorsed the nuclear agreement, known as the Joint Comprehensive Plan of Action, which was also signed by China, Russia, Britain, France, Germany, and the European Union.

On Friday, both China and Russia welcomed Iran’s commitment to the Non-Proliferation Treaty and Tehran’s pledge not to pursue nuclear weapons. “They emphasized that Iran’s right to use nuclear energy for peaceful purposes as a party to the treaty should be fully respected,” the statement said.

The trio also held joint naval exercises in the Gulf of Oman last week to deepen military cooperation.

It was also noteworthy that the meeting was not held in Beijing. China, which aims to mediate in disputes in the Middle East, has previously mediated between Iran and Saudi Arabia, long-time adversaries, and brought together Palestinian organizations in Beijing at the beginning of the Gaza War.

Analysts say that China’s growing interest in the Middle East also reflects Beijing’s desire to diversify relations beyond economic partnerships. According to Jonathan Fulton of the Atlantic Council, some Middle Eastern countries see relations with China as a tool and even leverage to attract the attention of the US.

“Iran, of course, sees the West as an enemy and China’s support as crucial to navigating a challenging regional and international environment,” Fulton said in his recent report for the Washington-based think tank.

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Azerbaijan and Armenia finalize peace treaty after negotiations

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Azerbaijani Foreign Minister Jeyhun Bayramov announced that Azerbaijan and Armenia have reached a final agreement on a peace treaty, agreeing on all articles, and have completed the negotiation process.

According to the news agency APA, the final agreed-upon articles include that the parties will not make mutual claims in the international arena and will not have foreign observers at the border.

The Armenian Ministry of Foreign Affairs also confirmed the completion of the negotiations. In an official statement, the Ministry said, “The Ministry of Foreign Affairs of the Republic of Armenia confirms that the draft ‘Agreement on the Establishment of Peace and Interstate Relations Between the Republic of Armenia and the Republic of Azerbaijan’ has been agreed upon. Therefore, the document is ready for signing.”

Armenian Prime Minister Nikol Pashinyan stated that the parties are ready to discuss the details regarding the date and place of the signing.

“We have our ideas, and so does Baku. We will try to bring them closer during the negotiations,” Pashinyan said.

According to Pashinyan’s statement, the agreements reached are a compromise that considers the interests of both parties.

The Prime Minister also emphasized that there are no secret clauses in the treaty text, stating, “The public is familiar with its main provisions, as they have been discussed for four years.”

The Prime Minister noted that since an agreement has been reached, Azerbaijan finds it beneficial for itself, and Armenia finds it acceptable for itself.

“This is what should be in any peace agreement,” he added.

Pashinyan stated that there were no negotiations with Baku regarding amendments to the Armenian Constitution.

However, Azerbaijan insists on changes to Armenia’s fundamental law, as it refers to the 1990 Declaration of Independence, which defines Nagorno-Karabakh as part of the country. Baku considers this a territorial claim.

Pashinyan had previously mentioned the need for constitutional reform, including the possibility of a referendum for a new fundamental law.

At the end of February, Pashinyan reported that the parties had agreed on 15 of the 17 articles of the agreement.

At that time, the main disagreements were related to the deployment of foreign troops along the border and cases pending in international courts.

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