Medea Ivaniadze China’s Activities in the South Caucasus Issue 8, 11.1.2021 – 7.2.2021 The digest covers China’s political, diplomatic, economic and other activities in the South Caucasus region and relations between China and the South Caucasus countries. It relies on a wide variety of sources, including the Chinese media. It is worth noting that the Chinese media is controlled by the Communist Party of China (according to the World Press Freedom Index China is nearly at the bottom of the list and ranks 177th out of 180 countries) 11.1.2021 – 17.1.2021 US Under Secretary of State discussed Chinese threat in 5G while taking about US-Georgia 5G security MOU On January 14, in an interview with US Under Secretary of State for Economic Growth, Energy, and the Environment, Keith Krach, a journalist asked him about the meaning of the US-Georgia 5G security memorandum of understanding. Krach answered that it is a comprehensive approach to long-term data, human rights and security that builds cooperation against threats posed by the Chinese Communist Party, Russia, and “other abusive countries”. Krach noted that in the 5G contest, its purpose is to use only trusted suppliers, not companies that are from countries where data protection is linked to the National Intelligence Act, as it is in China. Krach emphasized that the Chinese government obligates any Chinese company, whether it is state-owned or privately owned, to transfer data, information, technology or intellectual property to the Communist Party upon request. Krach said that 5G technology is very important for Georgia’s national security. “Suppliers of this technology will have all the keys and the issue is mostly about trust. This decision ultimately has to do not with technology, but with trust”. He added: “Do you trust two Scandinavian companies, such as Nokia and Ericsson, or Chinese companies, such as Huawei and ZTE?” VOA journalists noted that according to media reports, about 200 tablets in the Parliament of Georgia are running on Huawei technology and asked what will happen to this existing Chinese infrastructure when Georgia starts fulfilling the conditions of the memorandum. Krach stated that the situation was not different in Belgium, where NATO and EU headquarters are located - “They used Huawei in many areas. One day they realized that they had to get rid of the Huawei equipment. This is not unique for Georgia either”. 1 On the question where is Georgia in the technological competition and the cold war between US and China, Krach answered that it was a confrontation between US and China, and authoritarianism and freedom, adding: “The Chinese Communist Party is a threat to democracies around the world. This can be seen while analyzing the Belt and Road Initiative, they are tracking everyone not only in China but all around the world. They create dictators using not only the technology but also money”. Chinese Ambassador: China will continue to deepen friendly cooperation between China and Armenia On January 15, the Ambassador of China to Armenia, Fan Yong, published an article in an Armenian magazine: “Deepening China-Armenia cooperation and collaborating to build a new development pattern”. According to the Foreign Ministry of China, Fan noted that after the pandemic China would continue to deepen the friendly cooperation between China and Armenia, strengthen innovation and leadership, and encourage companies and institutions of the two countries to strengthen cooperation in infrastructure construction, development of mineral products, artificial intelligence, healthcare, e- commerce, cultural tourism and other fields. Also, to explore the possibility of opening direct flights or shipments and financial cooperation between the two countries, and “to upgrade the facilitation level of trade and personnel exchanges”. Azerbaijan will vaccinate its population with a Chinese Covid-19 vaccine Azerbaijan was set to begin vaccinating its population against Covid-19 using a vaccine developed by China, Reuters reported on January 15. Spokesman of the Azerbaijani government, Ibrahim Mammadov, did not disclose which Chinese vaccine would be used but said that it would be the same one as Turkey had acquired. Turkey is using a vaccine developed by China’s Sinovac Biotech Ltd. Xi Jinping wished President of Armenia a speedy recovery from Covid-19 General Secretary Xi Jinping sent a letter to the President of Armenia Armen Sarkissian, an Armenian news agency reported on January 12. According to Armradio, on behalf of his wife, Peng Liyuan, and himself, he wished a speedy recovery to President Sarkissian and Mrs Nune Sarkissian. Turkey’s second export train passing through BTK railway has arrived in China The second container train carrying freight from Turkey to China, consisting of 42 containers, each 40 feet long, arrived in Xi’an - ADY Container reported on January 16. 2 The transportation was carried out in 16 days. The train was operating on Baku-Tbilisi-Kars railway, passing Akhalkalaki station in Georgia, then moving from Azerbaijan to Kazakhstan via the Caspian Sea, and from there to the Chinese city of Xi’an. Director of Georgia’s Infectious Diseases Center: I have not recommended the import of Chinese vaccine On January 11, Director-General of Georgia’s Infectious Diseases, AIDS and Clinical Immunology Center, Tengiz Tsertsvadze, said that he had not recommended the import of Chinese vaccine. On Chinese vaccine, Tsertsvadze noted that it may be no less effective than other vaccines, like AstraZeneca - “Which is supported by the fact that this vaccine is used to vaccinate the population in China and this vaccine has been purchased by countries such as Turkey, UAE, Brazil and others. But I repeat that I have not recommended the purchase of this vaccine,” Tserdzvadze said. 18.1.2021 – 24.1.2021 China was Georgia’s top trading partner by exports in 2020 According to the preliminary data from the National Statistics Office of Georgia, in 2020 China was Georgia's top trading partner by exports. In 2020, Georgia's exports to China amounted to $476.3 million - 14.3% of the country's total exports and an increase of 113.4% compared to 2019 when this number was $223.1 million, constituting a share of 5.9%. China was Georgia’s third-largest overall trading partner ($1.18 billion) which was 10.4% of the total turnover. China was also Georgia’s third-largest trading partner by imports with $708.7 million (8.9% of total imports). It is noteworthy that Georgia exported to China 266 341.4 tons of copper ores and concentrates that amounted to $393.6 million. China is Azerbaijan’s fourth-largest trading partner China is Azerbaijan’s fourth-largest trading partner - its trade turnover with China reached $1.8 billion, an Azerbaijani news agency reported on January 21. According to MENAFN, China was Azerbaijan's third-largest trading partner by imports during the first ten months of 2020 with $1.4 billion. 3 “Safest and effective” - Azerbaijan presidential aide about Chinese vaccines “Azerbaijan got the safest and effective vaccine” - said presidential aide Shahmar Movsumov according to Chinese state news agency Xinhua, “as he praised the China-made jab at the briefing”. The health Minister of Azerbaijan noted that the country would begin vaccinating citizens against Covid- 19 on January 18, using a batch of 4 million doses from China’s Sinovac Biotech Ltd. Movsumov said that medical workers would vaccinate first, and then people over the age of 65, from February 1. Azerbaijan Health Minister vaccinated with Chinese vaccine On January 18, Chinese state media reported that Azerbaijan's Health Minister and other officials were vaccinated with Chinese vaccines. “Azerbaijani Health Minister Ogtay Shiraliyev and his deputies, as well as other health officials, were among the first to be vaccinated by what Shahmar Movsumov, an assistant to the president of Azerbaijan, earlier described as ’the safest and effective vaccine’ procured by Azerbaijan” - Chinese State media reported. The Embassy of Georgia in China donated anti-Covid-19 medical products to several Chinese schools Source: The Embassy of Georgia to China/Facebook 4 The Embassy of Georgia in China donated anti-Covid-19 medical products to several public schools in Ningxia Hui Autonomous Region, China. Medical products included face masks, hand sanitizers, thermal screening devices and others, the Embassy reported on January 21. Georgian Health Minister on Chinese vaccine: If it is in the list of safe, effective vaccines, we will make a decision On January 21 Health Minister of Georgia Ekaterine Tikaradze said that if Chinese vaccine were on the list of safe and effective vaccines, then they would decide what to do about it: "I would like to clarify that we will only import the vaccine that will be recognized by the World Health Organization. At this stage the Chinese vaccine does not have a verified document to accept it as a valid vaccine. We will wait for the process and according to the common decision, if it is included in the list of safe and the most effective vaccines, then we will make the next decisions about the import of Chinese vaccines to Georgia. We are not discussing it at this stage”. 25.1.2021 – 31.1.2021 Li Yan: China is looking forward to the further development of China-Georgia relations On January 27, an article written by the Chinese Ambassador to Georgia, Li Yan, was published in the “Rezonansi” newspaper. The Chinese side is looking forward to the further development of China- Georgia relations and stands ready to maintain high-level political ties with the Georgian side, Li Yan wrote in the article. Li Yan emphasized that China-Georgia trade and economic cooperation had grown: “For the third year in a row, bilateral trade turnover has exceeded $1 billion.