De-coupling from China would be the wrong way to go, Germany warns

German Foreign Minister Heiko Maas (L) and Chinese Foreign Minister Wang Yi attend a joint news conference in Beijing, China, on Nove. 13, 2018. (REUTERS/file)
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Updated 22 April 2021
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De-coupling from China would be the wrong way to go, Germany warns

  • China was hit by a round of coordinated sanctions from the US, EU, Britain and Canada over reports of forced labor in the far western Chinese region of Xinjiang

BERLIN: The European Union needs to engage with China despite many differences instead of opting for a more isolationist approach, Germany said on Wednesday.
“In the EU, we have been describing China as a partner, competitor and systemic rival at the same time,” German Foreign Minister Heiko Maas said ahead of a virtual meeting with his Chinese counterpart Wang Yi.
“In all these three dimensions we need strong, sustainable communication channels with Beijing. De-coupling is the wrong way to go.”
Berlin’s warning against de-coupling is in line with Beijing’s long-held position against disengagement among nations, including with China, despite mutual differences.
Last month, China was hit by a round of coordinated sanctions from the United States, European Union, Britain and Canada over reports of forced labor in the far western Chinese region of Xinjiang, accusations that Beijing rejects.
Ties between China and Germany have generally remained stable since last year, Chinese State Councilor and Foreign Minister Wang Yi said later in his meeting with Mass.
Wang also said major economies like China and Germany should jointly resist any de-coupling, and instead seek to uphold the stability of global industrial and supply chains, according to a statement from the Chinese foreign ministry.
At the same time, China does not approve of any re-drawing of ideological lines, and is even more opposed to engaging in “small cliques,” and even arbitrarily imposing unilateral sanctions based on false information, Wang said.
Last week, US President Joe Biden met with Japanese Prime Minister Yoshihide Suga in his first face-to-face White House summit since taking office, where both leaders said they shared serious concerns about the human rights situation in Hong Kong and Xinjiang.
In a show of economic cooperation to the exclusion of China, Biden said Japan and the United States would jointly invest in the tech sector including semiconductor supply chains. 

 

 

 


Saudi investment pipeline active as reforms advance, says Pakistan minister

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Saudi investment pipeline active as reforms advance, says Pakistan minister

ALULA: Pakistan’s Finance Minister Mohammed Aurangzeb described Saudi Arabia as a “longstanding partner” and emphasized the importance of sustainable, mutually beneficial cooperation, particularly in key economic sectors.

Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb said the relationship between Pakistan and Saudi Arabia remains resilient despite global geopolitical tensions.

“The Kingdom has been a longstanding partner of Pakistan for the longest time, and we are very grateful for how we have been supported through thick and thin, through rough patches and, even now that we have achieved macroeconomic stability, I think we are now well positioned for growth.”

Aurangzeb said the partnership has facilitated investment across several sectors, including minerals and mining, information technology, agriculture, and tourism. He cited an active pipeline of Saudi investments, including Wafi’s entry into Pakistan’s downstream oil and gas sector.

“The Kingdom has been very public about their appetite for the country, and the sectors are minerals and mining, IT, agriculture, tourism; and there are already investments which have come in. For example, Wafi came in (in terms of downstream oil and gas stations). There’s a very active pipeline.”

He said private sector activity is driving growth in these areas, while government-to-government cooperation is focused mainly on infrastructure development.

Acknowledging longstanding investor concerns related to bureaucracy and delays, Aurangzeb said Pakistan has made progress over the past two years through structural reforms and fiscal discipline, alongside efforts to improve the business environment.

“The last two years we have worked very hard in terms of structural reforms, in terms of what I call getting the basic hygiene right, in terms of the fiscal situation, the current economic situation (…) in terms of all those areas of getting the basic hygiene in a good place.”

Aurangzeb highlighted mining and refining as key areas of engagement, including discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures.

“From my perspective, it’s not just about one mine, the discussions will continue with the Saudi investors on a number of these areas.”

He also pointed to growing cooperation in the IT sector, particularly in artificial intelligence, noting that several Pakistani tech firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.

Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration, provided skills development keeps pace with demand.

“I was just with (Saudi) minister of economy and planning, and he was specifically referring to the Pakistani tech talent, and he is absolutely right. We have the third-largest freelancer population in the world, and what we need to do is to ensure that we upscale, rescale, upgrade them.”

Aurangzeb also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defense production.

Looking ahead, he said Pakistan aims to recalibrate its relationship with Saudi Arabia toward trade and investment rather than reliance on aid.

“Our prime minister has been very clear that we want to move this entire discussion as we go forward from aid and support to trade and investment.”