China changing its messaging on Israel?Iran's dark fleet & oil shipping, Chinese delegation to Egypt & Panda Bonds, Huawei Cloud in Egypt, Contracts in Morocco, the continuing saga Turkish EV tarrifs

Fueling antagonism only intensifies spiral of violence in the Middle East - China Daily. This is a not particularly interesting op-ed from China Daily except for one thing: it acknowledges that Hamas attacked Israel and that Israel is facing security threats from Hamas, Hezbollah, and the Houthis. It’s not a significant point but Chinese official messaging has consistently avoided these points. I think this is an acknowledgment that the PRC’s messaging and policy toward the conflict has been counter-productive; Beijing’s desire to be seen as a significant actor in the Middle East won’t be achieved if it’s position on Israel-Palestine sidelines Israel and aligns cloesly with Iranian preferences. We’ll see if this signals a shift in China’s approach.

After the Oct 7 Hamas attacks on Israel last year, Israeli leader Benjamin Netanyahu vowed to eliminate the threat of terrorism.

At first, it was a war on Hamas, which killed 1,200 Israelis and took 250 others hostage in those attacks. Then, as the war in the Gaza Strip expanded, Israeli offensives have invoked counterattacks from Hezbollah in Lebanon, Houthis in Yemen, militia forces in Iraq, and finally Iran.

How Iran’s Dark Fleet of Oil Ships Smuggles Black Gold to China - The Times. A good piece on how Iranian oil gets to China.

Sanctions prevent Iran from trading with large parts of the world. But it has found a ready buyer in China, which gets 15 per cent of its oil from Iran — a supply threatened by the conflict.

This equates to more than 90 per cent of all Iranian exports, with profits for Iran estimated at $2 billion a month. The demand from China is so great that Iran’s oil production has largely recovered to the levels it reached before Donald Trump reimposed sanctions in 2018. But the oil still has to reach China. That means finding a way around the western financial system and shipping services.

Here enters Iran’s dark fleet. Daniel Roth, research director at the non- profit United Against Nuclear Iran, said Tehran was “almost entirely dependent” on a “ghost armada” of 400 tankers registered outside the country.

PM meets Chinese NFRA Chairman - Egypt State Information Service. Egyptian PM Mostafa Madbouli met a delegation from China, including Li Yunzi, Chairman of China's National Financial Regulatory Administration (NFRA) and Liao Liqiang, Chinese Ambassador to Cairo. Much of this is a standard readout of the meeting, covering China’s involvement in TEDA Suez Industrial Zone and Central Business District construction projects. The section on Egypt’s Panda Bonds holdings is interesting to me; I hadn’t seen this before:

Dr. Moustafa Madbouli praised the first issuance of Panda bonds in the Chinese capital market worth 3.5 billion Chinese yuan, equivalent to 500 million dollars, with a credit guarantee provided by the Asian Infrastructure Investment Bank and the African Development Bank, as Egypt is the first country in Africa to enter the Chinese stock market, and the issuance met with great demand from a distinguished group of investors interested in the Egyptian market.

Dr. Moustafa Madbouli noted the cooperation between the two countries during the preparation of the first issue of Panda Bonds, which is a reflection of the comprehensive strategic partnership between the two countries. He also emphasized the importance of cooperation in the monetary and financial field between the two countries. 

TMG and Huawei join forces to offer AI Cloud Services for the first time in Egypt. A press release from Huawei about its cloud services coming to Egypt:

Huawei has partnered with Egypt's Talaat Moustafa Group (TMG) to build and deploy cutting-edge AI-powered cloud technology for the first time in the Egyptian market.

Under the agreement, signed in Shenzhen, China, TMG will leverage Huawei's advanced cloud technologies in building and developing cloud data centers and AI technologies, providing a wide range of advantages in the Noor City project. This technology is an ideal option for smart city development as it will rely on scalable infrastructure, real-time data analytics, and seamless connectivity.

TMG plans to offer comprehensive cloud services to the Egyptian market through "NOOR Cloud" and through the partnership will seek to meet the diverse needs of various urban communities with first-to-market cloud solutions.

Huawei Cloud has made inroads into Saudi Arabia and the UAE.

A couple more pieces on China’s deepening engagement with Morocco, which I’m planning a deeper dive into:

Chinese company bags contract for Morocco’s high-speed rail - Zawya.

China’s Railway Shanhaiguan Bridge and Germany’s Vossloh Cogifer have won contracts worth $56.2 million to supply critical components for Morocco’s high-speed rail expansion.

The upgrades will support the Kénitra-Marrakech line, the nation’s most vital transport corridor, Morocco World News reported, citing a statement by the national railway operator (ONCF).

The contract worth $9 million awarded to the Chinese company includes the turnouts (movable track) for the conventional line, which will run parallel to the new high-speed route.

China's Sentury launches production at Morocco plant, promising 6 million tires annually - Yabiladi.

Sentury, a leading Chinese tire manufacturer, has officially commenced production at its new plant in Morocco. The factory, located near Tangier, began operations on September 30th.

To mark the occasion, Sentury held a commissioning ceremony where the first batch of tires rolled off the production line. Qin Long, the company's chairman, was in attendance.

In April, Sentury announced that it would redirect the 2.8 billion yuan (approximately 360 million euros) initially allocated for a plant in Spain towards the construction of the Moroccan facility.

The Moroccan plant is expected to have an annual production capacity of 6 million tires.

China files complaint against Turkey at WTO over electric vehicle tariffs - Reuters. Finally, the ongoing saga of China-Turkiye EVs. In June Turkiye announced that it was imposing a 40% tariff on Chinese EVs, immediately following a successful visit from Turkish FM Hakan Fidan. This was followed by announcements of a billion dollar factory in Turkiye for BYD and ongoing talks with car producer Chery about an unspecified investment in Turkiye. This WTO complaint is likely a mechanism to come to some kind of agreement since both sides seem keen to develop this facet of the relationship.

China has taken the first step in initiating a trade dispute with Turkey at the World Trade Organization over its tariffs on imports of electric vehicles, its diplomatic mission said in a statement on Tuesday.

China is facing increasing trade pressures worldwide over its rising exports of electric vehicles, which many countries claim are being heavily subsidized by Beijing to support its sputtering economy.

"The discriminatory measure taken by Turkiye is against WTO rules, and is protectionist in nature. We urge Turkiye to follow WTO rules and immediately correct its measures," the statement said.