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Event Brief: Belt and Road Initiative Forum in Xiamen, China

Xiamen – On September 9th, FAO Global CEO Brandon Hughes, attended an all-day forum focused on the Belt & Road Initiative (BRI) from both a Chinese business perspective and government. This forum was part of the 20th China International Fair for Investment and Trade held in Xiamen City, Fujian province, China. The event was attended by provincial and city leaders from Xiamen and Fujian, as well the Ambassador to Beijing from Slovakia, the U.S. State Department, and an emissary from Egypt. – Brandon Hughes

The International Relations of Formula 1

Formula One (F1) Racing is considered one of the most popular sports in the world. It’s viewership in 2017 exceeded 340 million unique viewers, which surpasses the highly popular National Football League (NFL). F1, which represents the pinnacle of the vehicle racing world, showcases multi-million dollar open air rocket ships made possible from teams of multinational enthusiasts doing their part to ensure the continued existence of the sport.

Malaysia May Cancel Two Major Belt & Road Projects

On Tuesday, August 21, Malaysian president Mahathir Mohamad concluded his first visit in Beijing. During his 5-day visit, Mohamad re-negotiated with China for some $22 billion U.S. dollar infrastructure projects under the Belt and Road Initiative (also known as the One Belt One Road (OBOR) Initiative), in an effort to free Malaysia from their national debt crisis. Unlike his Beijing-friendly precursor, Mahathir is attempting to cancel two major China-backed infrastructure projects already in agreement with Beijing. – Weiting Li

Chinese Navy Conducts Naval Drills off Qingdao Coast

From August 10-13th, the China’s People’s Liberation Army Navy (PLAN) conducted a naval drill during in the East China Sea. The drill came during the same period Taiwan’s leader Tsai Ing-wen started her South America trip. Due to this naval drill, all civilian vessels and merchant ships were banned from entering restricted areas, which was from the northeast maritime area of Rizhao to the southeast maritime areas of Qingdao in Shandong Province, China. – Ziqing Zhang

China’s Economy Cooling Down

According a studied released on August 14 by the China National Bureau of Statistics China’s economic growth slowed 5.5%. This rate is lower compared to the first seven months (January through July) of the previous year’s growth. Beijing tried to explain the slow growth by China transitioning from ““high-speed growth” to “high-quality growth,” which was promoted by high tech initiative as part of Beijing’s “Made in China 2025” industrial policy. – Ziqing Zhang

For our assessment on the global impacts on businesses, see our detailed summary and assessment here.

China Intelligence Brief: July 2018

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Chinese Currency, Yuan, and Stock Markets Fall in Reaction to the Trade War

On August 6, the Chinese currency, Yuan, and mainland equities declined. While the yuan fell 0.17 percent to 6.8402 Yuan per dollar, the Shanghai Composite Index closed down 1.3 percent at its lowest since February 2016.For US companies heavily reliant on Chinese labor, Southeast Asia could be an alternative choice for relocating factories, temporary or permanent. – Ziqing Zhang

For more on the global impacts on businesses, see our detailed summary and assessment here.

U.S. Announced Investment & Security Funding to Indo-Pacific

On July 30, FAO Global attended the Indo-Pacific Forum held at the U.S. Chamber of Commerce in which U.S. Secretary of State, Mike Pompeo, announced that the United States will invest $113 million in the Indo-Pacific region to develop technology and infrastructure. This initiative likely intended to counter growing Chinese influence as part of the Belt and Road Initiative (BRI). – Ziqing Zhang

For a more detailed summary and our assessment, read more here.

Myanmar scales back on Belt & Road port project over debt concerns

China’s Belt & Road Initiative (BRI) is facing another challenge in Southeast Asia. On July 5, Myanmar announced it would be ceasing the continuation of billions of dollars of Chinese-sponsored projects. In the beginning of August, sources said that Myanmar was now scaling back on the Chinese-led Kyauk Pyu deep-water port project over cost concerns. – Weiting Li

China–Pakistan Economic Corridor: Issues and Possible Solutions

The China-Pakistan Economic Corridor (CPEC) is a collection of various infrastructure projects started on November 13, 2016. It is a flagship program under the Belt and Road Initiative that provides Beijing, direct access to to Gulf of Oman and Arabian Sea. Recently, critics of CPEC (both inside and outside Pakistan) have voiced their concerns over energy and economy issues between the two countries. – Weiting Li