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The Russian division of the Bank of China has suspended operations with Russian lenders sanctioned by the United States in order to avoid being hit with secondary sanctions, the Kommersant business newspaper reported Monday, citing industry insiders.

The Bank of China’s Russian division — which specializes in yuan payments between Russia and China — is the second-largest Chinese banking subsidiary in the country [...]

Experts [said that this] would likely increase fraud risks given the subsequent shift to opaque intermediaries to process payments between Russian and Chinese entities.

“This is not very good news for the Russian market,” an anonymous industry insider was quoted [...]. “There will be additional costs both in time and the price of processing payments.”

"But the most important problem is that payments go beyond the banking sector, resulting in the state having less control,” the source added.

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The Russian division of the Bank of China has suspended operations with Russian lenders sanctioned by the United States in order to avoid being hit with secondary sanctions, the Kommersant business newspaper reported Monday, citing industry insiders.

The Bank of China’s Russian division — which specializes in yuan payments between Russia and China — is the second-largest Chinese banking subsidiary in the country [...]

Experts [said that this] would likely increase fraud risks given the subsequent shift to opaque intermediaries to process payments between Russian and Chinese entities.

“This is not very good news for the Russian market,” an anonymous industry insider was quoted [...]. “There will be additional costs both in time and the price of processing payments.”

"But the most important problem is that payments go beyond the banking sector, resulting in the state having less control,” the source added.

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Democracy is not a crime and autocracy is the real “evil,” Taiwan President Lai Ching-te said Monday after China threatened to impose the death penalty in extreme cases for “diehard” Taiwan independence separatists.[...]

On Friday, China ramped up its pressure on Taiwan by issuing new legal guidelines to punish those it says support the island’s formal independence, though Chinese courts have no jurisdiction on the democratically governed island. [...]

“I want to stress: Democracy is not a crime; it’s autocracy that is the real evil. China has absolutely no right to sanction Taiwan’s people just because of the positions they hold. What’s more, China has no right to go after Taiwan people’s rights across borders,” he said.[...]

“I also want to call on China to face up to the existence of the Republic of China and have exchanges and dialogue with Taiwan’s democratically elected, legitimate government,” he said, using Taiwan’s formal name. “If this is not done, relations between Taiwan and China will only become more and more estranged.”

Taiwan said that since Thursday, there has been a sharp increase in Chinese military flights as Beijing carried out a “joint combat readiness patrol” near the island.

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Lai Ching-te once again called on China to accept the existence of Taiwan, a self-governing democracy that is claimed by Beijing but where its courts have no jurisdiction.

Democracy is not a crime and autocracy is the real “evil,” Taiwan President Lai Ching-te said Monday after China threatened to impose the death penalty in extreme cases for “diehard” Taiwan independence separatists.

China, which views Taiwan as its own territory, has made no secret of its dislike of Lai, who took office last month, saying he is a “separatist,” and staged war games shortly after his inauguration.

On Friday, China ramped up its pressure on Taiwan by issuing new legal guidelines to punish those it says support the island’s formal independence, though Chinese courts have no jurisdiction on the democratically governed island.

Asked about China’s move at a news conference at the presidential office in Taipei, Lai first reiterated his sympathy for recent flooding in southern China before responding.

“I want to stress: Democracy is not a crime; it’s autocracy that is the real evil. China has absolutely no right to sanction Taiwan’s people just because of the positions they hold. What’s more, China has no right to go after Taiwan people’s rights across borders,” he said.

According to China, anyone who does not uphold “reunification” is therefore a Taiwan independence supporter, Lai added.

“I also want to call on China to face up to the existence of the Republic of China and have exchanges and dialogue with Taiwan’s democratically elected, legitimate government,” he said, using Taiwan’s formal name. “If this is not done, relations between Taiwan and China will only become more and more estranged.”

Taiwan said that since Thursday, there has been a sharp increase in Chinese military flights as Beijing carried out a “joint combat readiness patrol” near the island.

From Thursday to Sunday, Taiwan says it detected 115 Chinese military aircraft operating nearby, getting as close as 31 nautical miles from the southern tip of the island.

Taiwan has said that for the past four years China has carried out regular military activity around the island as part of a “gray zone” pressure campaign.

Lai rejects Beijing’s sovereignty claims and says only Taiwan’s people can decide their future. He has repeatedly offered talks with China but been rebuffed.

China says any move by Taiwan to declare formal independence would be grounds to attack the island.

The government in Taipei says Taiwan is already an independent country, the Republic of China, and that it does not plan to change that. The Republican government fled to Taiwan in 1949 after losing a civil war against Mao Zedong’s Communists.

Lai also faces domestic challenges, as his Democratic Progressive Party (DPP) lost its majority in parliament in the same election in January that brought him to power.

Speaking at the same news conference, Lai said he would ask the constitutional court to stay a package of contested parliament reforms the opposition has passed and consider whether they comply with the constitution.

The opposition says the reforms, which among other things criminalize contempt of parliament by government officials, are needed to bring more accountability, but the DPP says they were forced through without proper discussion.

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Lai Ching-te once again called on China to accept the existence of Taiwan, a self-governing democracy that is claimed by Beijing but where its courts have no jurisdiction.

Democracy is not a crime and autocracy is the real “evil,” Taiwan President Lai Ching-te said Monday after China threatened to impose the death penalty in extreme cases for “diehard” Taiwan independence separatists.

China, which views Taiwan as its own territory, has made no secret of its dislike of Lai, who took office last month, saying he is a “separatist,” and staged war games shortly after his inauguration.

On Friday, China ramped up its pressure on Taiwan by issuing new legal guidelines to punish those it says support the island’s formal independence, though Chinese courts have no jurisdiction on the democratically governed island.

Asked about China’s move at a news conference at the presidential office in Taipei, Lai first reiterated his sympathy for recent flooding in southern China before responding.

“I want to stress: Democracy is not a crime; it’s autocracy that is the real evil. China has absolutely no right to sanction Taiwan’s people just because of the positions they hold. What’s more, China has no right to go after Taiwan people’s rights across borders,” he said.

According to China, anyone who does not uphold “reunification” is therefore a Taiwan independence supporter, Lai added.

“I also want to call on China to face up to the existence of the Republic of China and have exchanges and dialogue with Taiwan’s democratically elected, legitimate government,” he said, using Taiwan’s formal name. “If this is not done, relations between Taiwan and China will only become more and more estranged.”

Taiwan said that since Thursday, there has been a sharp increase in Chinese military flights as Beijing carried out a “joint combat readiness patrol” near the island.

From Thursday to Sunday, Taiwan says it detected 115 Chinese military aircraft operating nearby, getting as close as 31 nautical miles from the southern tip of the island.

Taiwan has said that for the past four years China has carried out regular military activity around the island as part of a “gray zone” pressure campaign.

Lai rejects Beijing’s sovereignty claims and says only Taiwan’s people can decide their future. He has repeatedly offered talks with China but been rebuffed.

China says any move by Taiwan to declare formal independence would be grounds to attack the island.

The government in Taipei says Taiwan is already an independent country, the Republic of China, and that it does not plan to change that. The Republican government fled to Taiwan in 1949 after losing a civil war against Mao Zedong’s Communists.

Lai also faces domestic challenges, as his Democratic Progressive Party (DPP) lost its majority in parliament in the same election in January that brought him to power.

Speaking at the same news conference, Lai said he would ask the constitutional court to stay a package of contested parliament reforms the opposition has passed and consider whether they comply with the constitution.

The opposition says the reforms, which among other things criminalize contempt of parliament by government officials, are needed to bring more accountability, but the DPP says they were forced through without proper discussion.

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Even by conservative measures, researchers say that China's subsidies green-tech products such as battery electric vehicles and wind turbines is multiple times higher compared to the support granted to countriesin tbe European Union (EU) and the Organisation for Economic Co-operation and Development (OECD).

The researchers conclude that the EU should use its strong bargaining power due to the single market to induce the Chinese government to abandon the most harmful subsidies.

TLDR:

• Quantification of overall Chinese industrial subsidies is difficult due to "China-specific factors”, which include, most notably, below-market land sales, but also below-market credit to state-owned enterprises (SOEs), support through state investment funds, and other subsidies for which there are no official numbers.
• Even when taking a conservative approach and considering only quantifiable factors of these subsidies, public support for Chinese companies to add up to at least €221.3 billion, or 1.73% of GDP in 2019. Relative to GDP, public support is about three times higher in China than in France (0.55%) and about four times higher than in Germany (0.41%) or the United States (0.39%).
• Large industrial firms such as EV maker BYD are offered disproportionately more support. The industrial firms from China received government support equivalent to about 4.5% of their revenues, according to a research report. By far the largest part of this support comes in the form of below-market borrowing.

Regarding electrical vehicles, the researchers write:

China’s rise to the world’s largest market and production base for battery electric vehicles has been boosted by the Chinese government’s longstanding extensive support of the industry, which includes both demand- and supply-side subsidies. Substantial purchase subsidies and tax breaks to stimulate sales of battery electric vehicles (BEV) are, of course, not unique to China but are also widespread within the EU and other Western countries, where (per vehicle) purchase subsidies have often been substantially higher than in China. A distinctive feature of purchase subsidies for BEV in China, however, is that they are paid out directly to manufacturers rather than consumers and that they are paid only for electric vehicles produced in China, thereby discriminating against imported cars.

By far the largest recipient of purchase subsidies was Chinese NEV manufacturer BYD, which in 2022 alone received purchase subsidies amounting to €1.6 billion (for about 1.4 million NEV) (Figure 4). The second largest recipient of purchase subsidies was US-headquartered Tesla, which received about €0.4 billion (for about 250,000 BEV produced in its Shanghai Gigafactory). While the ten next highest recipients of purchase subsidies are all Chinese, there are also three Sino-foreign joint ventures (the two VW joint ventures with FAW and SAIC as well as SAIC GM Wuling) among the top 20 purchase subsidy recipients.

Archived link

Even by conservative measures, researchers say that China's subsidies green-tech products such as battery electric vehicles and wind turbines is multiple times higher compared to the support granted to countriesin tbe European Union (EU) and the Organisation for Economic Co-operation and Development (OECD).

The researchers conclude that the EU should use its strong bargaining power due to the single market to induce the Chinese government to abandon the most harmful subsidies.

TLDR:

• Quantification of overall Chinese industrial subsidies is difficult due to "China-specific factors”, which include, most notably, below-market land sales, but also below-market credit to state-owned enterprises (SOEs), support through state investment funds, and other subsidies for which there are no official numbers.
• Even when taking a conservative approach and considering only quantifiable factors of these subsidies, public support for Chinese companies to add up to at least €221.3 billion, or 1.73% of GDP in 2019. Relative to GDP, public support is about three times higher in China than in France (0.55%) and about four times higher than in Germany (0.41%) or the United States (0.39%).
• Large industrial firms such as EV maker BYD are offered disproportionately more support. The industrial firms from China received government support equivalent to about 4.5% of their revenues, according to a research report. By far the largest part of this support comes in the form of below-market borrowing.

Regarding electrical vehicles, the researchers write:

China’s rise to the world’s largest market and production base for battery electric vehicles has been boosted by the Chinese government’s longstanding extensive support of the industry, which includes both demand- and supply-side subsidies. Substantial purchase subsidies and tax breaks to stimulate sales of battery electric vehicles (BEV) are, of course, not unique to China but are also widespread within the EU and other Western countries, where (per vehicle) purchase subsidies have often been substantially higher than in China. A distinctive feature of purchase subsidies for BEV in China, however, is that they are paid out directly to manufacturers rather than consumers and that they are paid only for electric vehicles produced in China, thereby discriminating against imported cars.

By far the largest recipient of purchase subsidies was Chinese NEV manufacturer BYD, which in 2022 alone received purchase subsidies amounting to €1.6 billion (for about 1.4 million NEV) (Figure 4). The second largest recipient of purchase subsidies was US-headquartered Tesla, which received about €0.4 billion (for about 250,000 BEV produced in its Shanghai Gigafactory). While the ten next highest recipients of purchase subsidies are all Chinese, there are also three Sino-foreign joint ventures (the two VW joint ventures with FAW and SAIC as well as SAIC GM Wuling) among the top 20 purchase subsidy recipients.

Archived link

Even by conservative measures, researchers say that China's subsidies green-tech products such as battery electric vehicles and wind turbines is multiple times higher compared to the support granted to countriesin tbe European Union (EU) and the Organisation for Economic Co-operation and Development (OECD).

The researchers conclude that the EU should use its strong bargaining power due to the single market to induce the Chinese government to abandon the most harmful subsidies.

TLDR:

• Quantification of overall Chinese industrial subsidies is difficult due to "China-specific factors”, which include, most notably, below-market land sales, but also below-market credit to state-owned enterprises (SOEs), support through state investment funds, and other subsidies for which there are no official numbers.
• Even when taking a conservative approach and considering only quantifiable factors of these subsidies, public support for Chinese companies to add up to at least €221.3 billion, or 1.73% of GDP in 2019. Relative to GDP, public support is about three times higher in China than in France (0.55%) and about four times higher than in Germany (0.41%) or the United States (0.39%).
• Large industrial firms such as EV maker BYD are offered disproportionately more support. The industrial firms from China received government support equivalent to about 4.5% of their revenues, according to a research report. By far the largest part of this support comes in the form of below-market borrowing.

Regarding electrical vehicles, the researchers write:

China’s rise to the world’s largest market and production base for battery electric vehicles has been boosted by the Chinese government’s longstanding extensive support of the industry, which includes both demand- and supply-side subsidies. Substantial purchase subsidies and tax breaks to stimulate sales of battery electric vehicles (BEV) are, of course, not unique to China but are also widespread within the EU and other Western countries, where (per vehicle) purchase subsidies have often been substantially higher than in China. A distinctive feature of purchase subsidies for BEV in China, however, is that they are paid out directly to manufacturers rather than consumers and that they are paid only for electric vehicles produced in China, thereby discriminating against imported cars.

By far the largest recipient of purchase subsidies was Chinese NEV manufacturer BYD, which in 2022 alone received purchase subsidies amounting to €1.6 billion (for about 1.4 million NEV) (Figure 4). The second largest recipient of purchase subsidies was US-headquartered Tesla, which received about €0.4 billion (for about 250,000 BEV produced in its Shanghai Gigafactory). While the ten next highest recipients of purchase subsidies are all Chinese, there are also three Sino-foreign joint ventures (the two VW joint ventures with FAW and SAIC as well as SAIC GM Wuling) among the top 20 purchase subsidy recipients.

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Der Modekonzern Hugo Boss will wieder mehr in Europa und Amerika fertigen lassen. Vorstandschef Daniel Grieder, das Verschicken der Ware von einem Kontinent zum anderen sei nicht mehr zeitgemäß. "Unsere Strategie ist: Was in Amerika verkauft wird, soll in Amerika produziert werden. Was in Europa verkauft wird, in Europa."

Als Grund nannte Grieder die "geopolitischen Spannungen". Er sagte: "Wir wollen in der Beschaffung und Produktion die Abhängigkeiten verringern – selbst wenn es günstiger wäre, nur in Asien zu produzieren." Es solle aber zusätzlich zur bestehenden Produktion in der Türkei, Italien und Deutschland keine neuen eigenen Werke geben. "Der Ausbau der Fertigung in Europa und Amerika erfolgt vor allem über Lieferanten", sagte Grieder.

Vorwürfe von Zwangsarbeit in Lieferketten

Hugo Boss war in den vergangenen Jahren unter anderem wegen Vorwürfen von Zwangsarbeit in seinen Lieferketten in China und aufgrund von Unternehmenstätigkeiten in Russland in die Kritik geraten. Zuletzt hat der Konzern angekündigt, sich komplett von seinem Russlandgeschäft zu trennen.

Hacking group RedJuliett compromised two dozen organisations in Taiwan and elsewhere, report says.

A suspected China-backed hacking outfit has intensified attacks on organisations in Taiwan as part of Beijing’s intelligence-gathering activities on the self-governing island, a cybersecurity firm has said.

The hacking group, RedJuliett, compromised two dozen organisations between November 2023 and April of this year, likely in support of intelligence collection on Taiwan’s diplomatic relations and technological development, Recorded Future said in a report released on Monday.

RedJuliett exploited vulnerabilities in internet-facing appliances, such as firewalls and virtual private networks (VPNs), to compromise its targets, which included tech firms, government agencies and universities, the United States-based cybersecurity firm said.

RedJuliett also conducted “network reconnaissance or attempted exploitation” against more than 70 Taiwanese organisations, including multiple de facto embassies, according to the firm.

“Within Taiwan, we observed RedJuliett heavily target the technology industry, including organisations in critical technology fields. RedJuliett conducted vulnerability scanning or attempted exploitation against a semiconductor company and two Taiwanese aerospace companies that have contracts with the Taiwanese military,” Recorded Future said in its report.

“The group also targeted eight electronics manufacturers, two universities focused on technology, an industrial embedded systems company, a technology-focused research and development institute, and seven computing industry associations.”

While nearly two-thirds of the targets were in Taiwan, the group also compromised organisations elsewhere, including religious organisations in Taiwan, Hong Kong, and South Korea and a university in Djibouti.

Recorded Future said it expected Chinese state-sponsored hackers to continue targeting Taiwan for intelligence-gathering activities.

"We also anticipate that Chinese state-sponsored groups will continue to focus on conducting reconnaissance against and exploiting public-facing devices, as this has proved a successful tactic in scaling initial access against a wide range of global targets,” the cybersecurity firm said.

China’s Ministry of Foreign Affairs and its embassy in Washington, DC did not immediately respond to requests for comment.

Beijing has previously denied engaging in cyber-espionage – a practice carried out by governments worldwide – instead casting itself as a regular victim of cyberattacks.

China claims democratically ruled Taiwan as part of its territory, although the Chinese Communist Party has never exerted control over the island.

Relations between Beijing and Taipei have deteriorated as Taiwan’s ruling Democratic Progressive Party has sought to boost the island’s profile on the international stage.

On Monday, Taiwanese President William Lai Ching-te hit out at Beijing after it issued legal guidelines threatening the death penalty for those who advocate Taiwanese independence.

“I want to stress, democracy is not a crime; it’s autocracy that is the real evil,” Lai told reporters.

Lai, whom Beijing has branded a “separatist”, has said there is no need to formally declare independence for Taiwan because it is already an independent sovereign state.

Hacking group RedJuliett compromised two dozen organisations in Taiwan and elsewhere, report says.

A suspected China-backed hacking outfit has intensified attacks on organisations in Taiwan as part of Beijing’s intelligence-gathering activities on the self-governing island, a cybersecurity firm has said.

The hacking group, RedJuliett, compromised two dozen organisations between November 2023 and April of this year, likely in support of intelligence collection on Taiwan’s diplomatic relations and technological development, Recorded Future said in a report released on Monday.

RedJuliett exploited vulnerabilities in internet-facing appliances, such as firewalls and virtual private networks (VPNs), to compromise its targets, which included tech firms, government agencies and universities, the United States-based cybersecurity firm said.

RedJuliett also conducted “network reconnaissance or attempted exploitation” against more than 70 Taiwanese organisations, including multiple de facto embassies, according to the firm.

“Within Taiwan, we observed RedJuliett heavily target the technology industry, including organisations in critical technology fields. RedJuliett conducted vulnerability scanning or attempted exploitation against a semiconductor company and two Taiwanese aerospace companies that have contracts with the Taiwanese military,” Recorded Future said in its report.

“The group also targeted eight electronics manufacturers, two universities focused on technology, an industrial embedded systems company, a technology-focused research and development institute, and seven computing industry associations.”

While nearly two-thirds of the targets were in Taiwan, the group also compromised organisations elsewhere, including religious organisations in Taiwan, Hong Kong, and South Korea and a university in Djibouti.

Recorded Future said it expected Chinese state-sponsored hackers to continue targeting Taiwan for intelligence-gathering activities.

"We also anticipate that Chinese state-sponsored groups will continue to focus on conducting reconnaissance against and exploiting public-facing devices, as this has proved a successful tactic in scaling initial access against a wide range of global targets,” the cybersecurity firm said.

China’s Ministry of Foreign Affairs and its embassy in Washington, DC did not immediately respond to requests for comment.

Beijing has previously denied engaging in cyber-espionage – a practice carried out by governments worldwide – instead casting itself as a regular victim of cyberattacks.

China claims democratically ruled Taiwan as part of its territory, although the Chinese Communist Party has never exerted control over the island.

Relations between Beijing and Taipei have deteriorated as Taiwan’s ruling Democratic Progressive Party has sought to boost the island’s profile on the international stage.

On Monday, Taiwanese President William Lai Ching-te hit out at Beijing after it issued legal guidelines threatening the death penalty for those who advocate Taiwanese independence.

“I want to stress, democracy is not a crime; it’s autocracy that is the real evil,” Lai told reporters.

Lai, whom Beijing has branded a “separatist”, has said there is no need to formally declare independence for Taiwan because it is already an independent sovereign state.

Canada's ambassador to Beijing visited the region of Xinjiang last week and expressed concerns about human rights violations directly to local leaders, the Canadian foreign ministry said in a statement on Sunday.

A 2022 report by the then U.N. human rights chief said China's treatment of Uyghurs, a mainly Muslim ethnic minority in Xinjiang, in the country's far west, could constitute crimes against humanity. Beijing denies the allegations.

Ambassador Jennifer May visited Xinjiang from June 19-22, the first such visit by a Canadian envoy in a decade. "(This) served as an opportunity to communicate Canadian concerns about the human rights situation directly to the leadership of Xinjiang," the ministry statement said.

"Ambassador May raised concerns over credible reports of systematic violations of human rights occurring in Xinjiang affecting Uyghurs and other Muslim ethnic minorities, including those raised by U.N. experts," it continued.

The Chinese embassy in Ottawa was not immediately available for comment. May visited Xinjiang a few weeks after Canada said it had warned China against meddling in its elections. In April, Prime Minister Justin Trudeau said Beijing had tried to interfere in the last two national votes, a charge China dismissed.

Campaign groups on Saturday urged U.N. human rights chief Volker Turk to take more action over what they said were documented abuses against Uyghurs and other Muslims.

May also reiterated Canada's calls for China to allow U.N. independent experts unfettered access to all regions of China, the statement said. Canada, like the United States, has imposed sanctions on individuals and entities over alleged rights abuses in Xinjiang.