Category: China-India-Africa

The Bridge Tank and the French Development Agency launched a joint seminar series on blue economy in the Bay of Bengal (Bangladesh, India, Sri Lanka)

The Bridge Tank and AFD are co-hosting three workshops to understand the way in which Bangladesh, India and Sri Lanka organize their blue economy strategies, adapt to the physical impacts of climate change of the fishery resource and to identify the priorities, the opportunities and the needs for action. Along with the research and operational departments of the French Development Agency (AFD), we engage with marine, coastal and fisheries resource management bodies and influential national or regional think tanks.

On November 26th 2021, the online inaugural workshop gathered strategic thinking of the participants ahead of developing a growing interaction between them and institutes and policy makers in the following workshops, planned for January and February 2022.

This first workshop aimed at earmarking new blue economy priorities for various actors and nations in the Bay of Bengal, bringing shared understandings and diagnostics, identifying opportunities and needs in socio-economic projects. It aimed to identify the regional context and issues related to the blue economy, in particular the improvement of living standards of coastal communities and resource users through sustainable management of fisheries and integrated coastal management to adapt to climate change, through two panels.

This virtual event brought together 12 speakers from 10 key organizations working on the blue economy in the region, gathering over 100 attendees.

Two panels shared speakers’ understanding of the different local issues related to the value chain of fisheries resources.

  • Panel 1: “Resilient coastal ecosystems as a crucial prerequisite for sustainable economic value chains?”

Speakers:

Dr. Arnab Das, Director, Maritime Research Centre, India

Dr Srinivas Kumar, Director, Indian National Center for Ocean Information Services (INCOIS)

Ms Hasamini Sweenie Thilakarathne, Project coordinator and international affairs officer, Marine Environment Conservation Society of Sri Lanka (MECS), Sri Lanka Dr Chime Youdon & Dr Saurabh Thakur, Associate Fellows, National Maritime Foundation

Mr. Mashiur Rahaman, Joint Secretary, Ministry of Fisheries and Livestock

  • Panel 2: “Sustainable fisheries and enhanced livelihood: actions on fisheries for food security, job access and climate change adaptation in the region”

Speakers:

Mrs Afifat Khanam Ritika, Research Officer, Bangladesh Institute of Maritime Research and Development (BIMRAD)

Mr Md. Abdul Wahab, EcoFish Team Leader, WorldFish, Bangladesh Wing

Mrs Runa Khan, Founder & Executive Director, Friendship NGO

Dr M.F.M. Fairoz, Dean, Faculty of Fisheries and Marine Sciences, Ocean University of Sri Lanka

Dr. Md. Sharif Uddin, Department of Fisheries, Bangladesh

To watch the workshop online, click here: Panel 1 & Panel 2 

To read the minutes report, click here

France 24 – Joël Ruet speaks on the 2021 Chinese Communist Party Congress and Chinese economic difficulties

The Chinese Communist Party (CCP) began its most important meeting of the year on Monday, the 8th of November 2021, which will set President Xi Jinping’s historic vision in stone. The Beijing strongman has been in power for nine years and in a year’s time will seek a third term as head of the CCP — further cementing his stature as the country’s most powerful leader since the Communist regime’s founder, Mao Tse-tung, ruled from 1949 to 1976. Why this resolution? According to Joel Ruet, President of The Bridge Tank, who spoke on this matter on French television channel France 24, it could be a sign of economic difficulties the regime faces.

Watch his intervention (in French) here.

OpEd: G20 Must Help Low Income Countries Get Out of Debt Crises

On the occasion of the G20 Finance Ministers meeting in Washington DC, our Policy Brief on the modernization of the African Banking sector was mentioned in an OpEd in Diplomatic Courier by Joel Ruet. This paper suggests that, in addition to sovereign aid, commercial banks in Africa get a fairer rating of their (low) risks and (high) profitability and thus ease their refunding costs to deliver levers of growth and employment.

Read our policy brief here

Read the OpEd here

Issue Brief: AUKUS – A storm in the Pacific

On 15 September 2021, Australia terminated a contract with France to supply conventional submarines, in favor  of a nuclear military-technology collaboration with the United States and the United Kingdom. This breach of contract highlighted the nascent AUKUS (Australia, United Kingdom and United States) military alliance, which was created in response to China’s growing power in the Indo-Pacific. This tripartite alliance has only served to add insult to injury in the current tense international context, as well as to exacerbate diplomatic relations between France and the United States.

In light of the visit to Paris on October 5, 2021, of the Secretary of State of the United States, Anthony Blinken, to try and appease the situation, The Bridge Tank published an analytical note, written by retired French General Eric de La Maisonneuve.

This issue brief is based on the idea that the contract denounced by Australia, a long-term contract and considerable in financial terms, had become a limited contract in technological terms and modest in relation to the strategic stakes in the Indo-Pacific zone. This Australian reversal reveals several key points:

  • The worsening situation in the region, particularly in the South China Sea, the growing antagonism between China and the United States on trade issues, the impressive rise of the Chinese navy and its associated armaments, the multiple Sino-Australian tensions, all lead both the United States and Australia to review their arrangements.
  • If, as is to be expected, events in the area precipitate, urgency will prevail and the USA will be forced to install their bases and nuclear submarines directly in Australia, even if it means renting or loaning some of them to the latter. Here again, it is likely that this future contract under the AUKUS umbrella will have difficulty seeing the light of day.
  • France for its part should draw the consequences of this diplomatic-strategic fiasco in three directions:
    • Revise its “foreign policy/defense policy” complex,
    • Re-evaluate the European security pillar and its concretization through a Franco-German alliance under the French Presidency of the EU,
    • Rethink in this context its systems of analysis of China to better anticipate its strategy and its actions.

Read the issue brief here (in French): 2021-10-04-IB La Maisonneuve

Malaurie Le Bail, analyst at The Bridge Tank, speaks at the conference: “Between Russian and Chinese covetousness, what place for the European Union?”

The conference on Central Asia at Sciences Po Strasbourg, on 17 September 2021, “Between Russian and Chinese covetousness, what place for the European Union?”, was for The Bridge Tank the opportunity to recall that the land silk roads are first of all a vast operation to open up the provinces of Western China.

Malaurie Le Bail, analyst at The Bridge Tank, participated in this event moderated by Henri de Grossouvre and organised by Michaël Levystone and Noé Morin, in the presence of Sylvie BERMANN, former French ambassador and Gilles RÉMY, CEO of CIFAL Groupe, Thierry Kellner, Michaël Levystone, Henri de Grossouvre and Noé Morin.

Watch her intervention on our youtube (in French). 
Read our article on the conference here.

EU strategic interests vis-à-vis China: our article published in the National Defence Review and published by China Today

As the strategy of European autonomy in the face of Chinese power gathers traction, The Bridge Tank published an issue brief in both the National Defense Review and China Today. An indication that rigorous discussion for a tight negotiation remains possible?

After two years of work, The Bridge Tank has positioned itself in the calibration of the balance of power between the EU and China, in particular by publishing last March issue briefs (For a balance of power – what is at stake around the pre-agreement of principle on investment, co-signed by several former ministers and French ambassadors; and Sino-Western Conflict, analysis and proposals, the latter written by General Eric de la Maisonneuve)

The analyses developed highlight the fact that the two protagonists in their power relations are out of step both in time and space.

The Bridge Tank, active in both Western and Chinese debates, points out the double error of analysis that these two protagonists are making of each other as well as proposals for firm discussions on strategic resources.

This approach was taken up in March 2021 in the “Revue Défense Nationale”, a French strategic and defense reference magazine, an intervention that we then popularized in a high-circulation Chinese-language media, China Today. This bilingual article explicitly analyses the European interests generated by this new partnership with China in conjunction with political, ecological and economic issues.

A degrading context

On Tuesday 4 May 2021, European Commission Vice-President Valdis Dombrovskis announced the suspension of a landmark EU-China investment agreement. This agreement, which has been under construction for seven years, was concluded on 30 December 2020, but was finally cancelled due to the deteriorating political and business climate between the parties.

What role can the EU play?

This agreement, although met with contempt by some European leaders and the international press, offers crucial benefits for the EU’s economic development. In the context of a new Cold War between China and the United States and the health crisis, Europe wants “to cooperate with China is also to cooperate with the RCEP (Regional Comprehensive Economic Partnership), the world’s third largest economic bloc, and thus gain access to the ASEAN countries”.

European sovereignty based on an environmental thread

Since signing the Paris Agreement in 2015, the EU has shown itself to be a pioneer in the fight against global warming and for environmental rights. China, one of the world’s largest emitters of CO2 with 28% of global emissions, has declared its goal to reduce its carbon emissions by 2060.

 

By working with China, this agreement would allow for a more open and direct dialogue on urban innovations, such as smart cities, developed for the benefit of future generations.

In the face of the rise of China and the United States in the digital field, it is clear that Europe needs to catch up to counter the power game in order to guarantee its strategic autonomy.

Read the issue brief (in French) here

China’s policy on strategic materials – impact on the batteries ecosystem and industry recommendations

By Xieshu Wang and Joël Ruet.

Strategic materials, such as rare earth, lithium, cobalt or nickel, are indispensable inputs for green transition technologies such as wind turbines or batteries for electric vehicles. With more and more governments aiming to reach climate neutrality by 2050 and as the necessity to transition to sustainable economies is becoming more and more pressing, primary materials’ demand will rise and they are therefore considered critical inputs, or strategic materials. It is expected that consumptions of strategic metals will increase from 7 to 19 billion tons per year, inducing serious tensions on the supply side. Cobalt is one of these metals used as an input in the magnets of wind turbines, and for the production of the cathodes of lithium-ion and nickel metal hybride batteries.

As China quickly understood the importance of the metal for future strategic technologies, it positioned itself early on the cobalt value chain and has therefore been able to control a significant part of the chain, mostly by controlling a large portion of the DRC’s cobalt ressources.

This document provides an analysis of China’s materials strategy, the way it has managed to gain a privileged position on the value chain,  as well as an analysis of the key private actors that are major players on the cobalt value chain.

Industry recommendations : Industry Recommendations – China’s key materials strategy

Analytical report : Analytical Report – China’s key materials strategy

Tribune: The Winners and Losers of the Australian-China Trade War

The current trade war between Australia and China has heavily impacted the position and importance of China’s global trading partners, particularly within the beef and wine industry. Whilst Australia has undoubtedly suffered, other countries such as USA and Brazil are taking this opportunity to fill in the market gap.

The Bridge Tank president Joël Ruet explores the current state of trade and potential new Chinese partnerships incurred by this conflict in his latest article published on the Diplomatic Courrier. Read here  

EU-US Summit : towards a new transatlantic partnership ?

“America is back” and the Trump years are behind us, as evidenced by the holding of the EU-United States summit in Brussels on June 15, 2021: being the first meeting of this type since 2017, it marked the launch of a renewed partnership and a joint program for cooperation between the EU and the United States, following a sectoral approach. This meeting notably enabled three major commercial achievements to revive and deepen transatlantic trade in a context of Sino-American tensions.

 Civil aircraft cooperation agreement closes 17-year dispute

Leaders Joe Biden, Charles Michel, president of the European Council, and Ursula von der Leyen, president of the European Commission, have committed to creating a cooperative framework for large civil aircraft, taking a major step toward ending the dispute over the sector. After 17 years of dispute between Brussels and Washington before the WTO, this agreement initiates a new transatlantic relationship in the aeronautics sector. At the root of the dispute: illegal subsidies granted to aircraft manufacturers Airbus and Boeing. Under the Trump administration, tensions were exacerbated and the WTO authorized the imposition of taxes on $7.5 billion worth of imported European goods and services, including 25% on wine and 15% on Airbus aircraft. 

At the end of the summit, the leaders announced the suspension of punitive tariffs imposed on each other, as part of a five-year truce. The resolution of this dispute, which has plagued bilateral relations, is a strong signal that the Biden administration is moving toward a rapprochement that will create a level playing field and address new industrial challenges. 

This search for appeasement reflects an attempt to bring the EU on board in the US tug-of-war with China by strengthening the U.S.-European position. Especially since this former duopoly of aircraft manufacturers is now becoming an oligopoly with the entry of the new Chinese player Comac. This common-sense measure therefore also has the potential to counter the Chinese breakthrough in this sector and to challenge China’s perceived unfair competition practices. The idea is also to set up an effective cooperation model to jointly address other challenges posed by China’s economic model. While it is not certain that a compromise will be reached at the end of this truce, there is a real American will to reach an agreement. Indeed, when the dispute began in 2004, Airbus was gaining ground on the international market to the detriment of Boeing, whereas today the threat comes from China and it is time for unity on both sides of the Atlantic.

Negotiations to resolve steel and aluminum dispute underway

Leaders agreed to begin discussions to resolve the steel and aluminum trade dispute and to lift all additional and punitive tariffs by the end of the year. Ursula von der Leyen announced a working group on this issue that has marred transatlantic relations since Donald Trump announced in 2018 the imposition of taxes of 25% on European steel imports and 10% on aluminum imports, provoking European countermeasures in return. 

Lifting these taxes in the spirit of appeasement that prevails today would be a much-awaited political gesture by the EU, which expects strong actions beyond intentions. However, this diplomatic gesture should not change the face of European trade, nor turn the European steel and aluminum market upside down, as prices have risen in an unprecedented manner over the past six months, drowning out the impact of the US taxes.

Moreover, the actual resolution of the conflict is likely to be thorny, as the EU does not have a tariff and trade logic but a border tax logic that is different from the United States. The partnership is not self-evident and leaves the door open to a possible rapprochement with China, whether on the American or European side. 

The establishment of an EU-US Trade and Technology Council 

It is no longer a question of Europe and the United States entering into a free trade logic, as the Transatlantic Trade and Investment Partnership negotiated since 2013 is no longer relevant. However, a Trade and Technology Council will be created to provide a platform for cooperation on trade, investment, technology, digital issues and supply chains. It embodies a willingness to cooperate in developing compatible and international standards and to promote innovation while avoiding unwarranted new trade or technical barriers. It will enable the partners to align on global technology issues, such as artificial intelligence, cybersecurity, clean technologies… Both sides have already committed to a partnership on rebalancing semiconductor supply chains as a priority. 

This third announcement is both the most imprecise and the most structuring for the future of EU-US bilateral relations. At a time when a technological war seems to be underway with China, the issue of technological coordination is central. After a first American and commercial globalization, which was undermined by the Trump years, Biden now has the project of knitting a new one, which will take the form of technological liberalization. 

The African diaspora recalled by the continent?

The sustained growth of the last two decades and the two global crises of 2008 (Subprimes) and 2020 (Covid-19) have revealed new challenges on a global scale, which are illustrated in Africa by a sustainable modernisation challenge. The role of the diaspora in accessing international finance is one of the keys to Africa’s challenges. Morocco published this Tuesday, May 25, 2021 its report entitled “The New Development Model, unleashing energies and restoring confidence to accelerate the march towards progress and prosperity for all”.

Read here the french paper : La diaspora africaine rappelée par le continent ?

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