USA blacklist Xiaomi and other companies from China

Frankfurt, Düsseldorf After Huawei, the Chinese technology group Xiaomi has also been sanctioned by the US government. The US Department of Defense lists the Beijing company on a list of “Communist-Chinese military companies”. The Xiaomi share then sagged on the Hong Kong Stock Exchange by more than ten percent. It also went downhill for papers from suppliers.

However, the sanctions against Xiaomi do not go as far as in the case of Huawei. While the US government has largely cut off the network equipment supplier from suppliers, Xiaomi initially asked US investors to sell their shares by November at the latest. In addition to Xiaomi, eight other Chinese companies are on the list (PDF document). The move is one of the last steps taken by US President Donald Trump.

A Xiaomi spokesman contradicted the assessment of the US authorities to the Handelsblatt. “The company is not affiliated with, nor is it owned or controlled by the Chinese military,” he said.

The company is preparing countermeasures, the spokesman announced, without giving any further details. Xiaomi expanded to Germany at the end of 2019 and opened a flagship store in Düsseldorf last summer.

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The Chinese government condemned the US actions. “The Chinese side will take necessary measures to protect the interests of Chinese companies,” said a Foreign Ministry spokesman.

Over the years, Trump has portrayed China as the greatest international threat to the USA and, among other things, claimed during the election campaign without any evidence that his competitor Joe Biden had been bought by Beijing. His government took action against various Chinese companies.

The hardest hit was Huawei. The network equipment supplier and smartphone manufacturer lost access to US technology – on account of the allegation that the Chinese government could force it into far-reaching cooperation. Huawei rejects this.

Before the sanctions, Huawei started to jump to the top of the world market in smartphone sales. Since the US bans, however, the group has not been able to sell any new models with pre-installed Google services. But these are extremely important for buyers in the West. Sales of smartphones in China remained unaffected, but Xiaomi has recently established itself as number three in the market after Samsung and Apple.

The U.S. Department of Commerce also blacklisted China’s third-largest state-owned oil company, CNOOC, which makes it harder for U.S. firms to do business with the company. As early as December, the USA had imposed restrictions on 60 other Chinese companies.

Xiaomi grew up selling cheap but technically sophisticated smartphones on the Internet. The company now also has all kinds of networked devices on offer, from televisions to rice cookers.

Effects for international investors

The fact that US investors will no longer be allowed to invest in the company’s securities in future means a major turning point for international investors. The share had risen by over 26 percent since mid-November, and by over 130 percent since January 2020. Now the upward trend should at least be dampened.

Trump’s actions also have consequences for investors outside the US. So-called ADRs, with which investors abroad can trade Xiaomi securities, have meanwhile collapsed by over ten percent. These American Depositary Receipts are US dollar-denominated share certificates or depository receipts that represent a certain number of shares in a foreign company and that can be traded on US stock exchanges in their place.

In addition, the shares of major Xiaomi suppliers also lost on Friday: FIH Mobile, a company that helps assemble smartphones, fell by almost 14 percent after a strong rally in recent days. The shares of the supplier Largan Precision, Sunny Optical Technology and AAC Technologies Holdings also fell. According to loan dealers, spreads on Xiaomi’s dollar bonds increased by as much as 60 basis points on Friday.

Financial analysts on site were surprised by the decision. Kevin Chen of the Hong Kong securities trading firm China Merchants Securities described the news as “very surprising”. Many investors should now reap profits from last year’s rally, according to Chen. Nevertheless, he explains that the downturns on the stock market could be “short-lived” and that no fundamental damage should arise for Xiaomi.

Trump had also tried since the summer to force a sale of at least the US business of the popular video app Tiktok to American investors. However, the Chinese government torpedoed the plans with export restrictions on software. Regardless of this fiasco, however, Trump’s government began to force eight more apps out of the US market in early January, including the payment services Alipay and Wechat Pay, which are popular in China.

In the closing stages of Trump’s term in office, his government made several major decisions in foreign policy that set Biden in front of a fait accompli. A few days ago, for example, Cuba was put back on the US terrorist list. In Yemen, the US government targeted the Houthi rebels, an ally of Iran in the civil war country. Washington had previously recognized Morocco’s sovereignty over the Western Sahara, surprisingly.
With agency material

More: China is increasingly decoupling from the global economy – these are the consequences for European companies


Samsung S 21: Samsung tries the smartphone balancing act

Galaxy S21 Plus

The Ultra and the Plus still have an aluminum back, while that of its cheaper siblings is made of plastic.

(Photo: AP)

San Francisco 2020 was a modest year for the smartphone industry. When the corona pandemic paralyzed the global economy in the first half of the year, global sales collapsed by 20 percent, according to market researcher Gartner. Even the Christmas business will probably no longer be able to save the result.

But what follows from this? On the one hand, many people have less income to put in expensive smartphones. For others, however, the money piles up in the account because cinema and restaurant visits are not possible during curfew.

What they all have in common is that the world lives in socially distant times and the smartphone plays an even greater role than it already does. Games, movies – all of the entertainment is online.

Samsung is now trying to address the various consumer groups all at once. With its new 5G-capable Galaxy smartphones, the group wants to master this balancing act:

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  • The flagship of the series, the Samsung S21, is available this year from 849 euros – 50 euros cheaper than the S20 a year ago. The slightly larger S21 Plus is available from 1049 euros.
  • All are equipped with the latest Snapdragon processor from Qualcomm, which promises significantly faster performance.
  • The Galaxy S21 Ultra is also 200 euros cheaper than its predecessor at the beginning of 2020. Nevertheless, the premium phone is only slightly cheaper than the iPhone 12 Pro Max, the most expensive Apple device, at 1249 euros.
  • The Ultra is Samsung’s first phone to support the stylus pen known from tablets.
Samsung Galaxy S21

The Ultra is Samsung’s first phone to support the stylus pen known from tablets.

(Photo: dpa)

Lower prices require compromises

The Ultra and Plus still have an aluminum back, while that of its cheaper siblings is made of plastic – the lower price tag requires some painful compromises. The screen resolution is also lower, and there is no longer the option of expanding the internal memory with an SD card.

As with Apple’s iPhone, headphones and a charging cable are no longer included and must be purchased as accessories.

Samsung Galaxy S21

The various smartphones in the Galaxy S21 (right), S21 + (middle) and S21 Ultra (left) models vary in price and features.

(Photo: dpa)

When it comes to the overall strategy, the world’s largest smartphone manufacturer is also following Apple: The Silicon Valley group kept the price of its premium phones well above 1000 euros, but with the iPhone Mini offered a smaller, slimmed-down model for less than 800 euros.

The cheap model did not go down well with Apple customers: According to the analysis firm CIRP, only six percent of iPhone purchases in the past few months were attributable to the new budget device, hardly more than to the more than a year old flagship 11. Its successor, the iPhone 12, made up 20 percent of iPhone sales.

Apple’s customers are obviously not feeling the crisis in their wallets. But Samsung, twice the size of Apple with a global market share of 22 percent, must also target more economical customer segments in order to keep aspiring Chinese providers like Xiaomi at a distance. While Google has given up the price on the luxury segment with its Pixel phones, Samsung is fighting on both fronts.

Samsung is the secret winner of the trade dispute

After all, Samsung is likely to continue to be the secret winner of the US-Chinese trade dispute. Since Google is no longer allowed to license its Android operating system to Huawei, the Chinese have been struggling to develop their own operating system and ecosystem of apps.

Huawei expects to equip 200 million devices with its Harmony OS this year, but for many customers in the West the system is not an option without Youtube, Maps and other Google apps.

With the new Galaxy generation, Samsung is positioning itself broadly for a year that finally promises improvement after the lousy 2020: The market researcher Trendforce expects smartphone production to increase by nine percent to 1.36 billion devices this year.

More: Samsung presents new high-end smartphones of the Galaxy S21 series.


China is increasingly decoupling from the global economy

Beijing, Berlin, Düsseldorf Mostly once a year, China’s head of state and party leader Xi Jinping gives a speech to high-ranking ministry and provincial leaders at the Central University of the Communist Party, which sets the course for the year. But this time it had a special meaning. Because the five-year plan is currently being finalized, which should set the course for the economy in the People’s Republic from March to 2025.

Foreign company representatives may not have liked what Xi said behind closed doors earlier this week. “The most essential feature of building a new development pattern is to achieve a high level of self-sufficiency and self-improvement,” says Xi. ”

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China versus USA: Europe is the loser in this tech war

IIn these days, things are quickly becoming political when it comes to technology, and not just when Twitter bans Donald Trump’s user account. The same thing happened to the EU officials who negotiated the EU-China investment agreement at the end of last year. They were only able to end the negotiations shortly before the turn of the year – and in the process had to clear a politically extremely delicate hurdle.

In one of the last drafts of the contract text, which Beijing sent to Brussels at the beginning of December, there was apparently a passage that the negotiators of the EU Commission were not prepared for. He intended to punish those EU countries that block their latest generation of 5G cellular networks for equipment from the Chinese provider Huawei, wrote the “South China Morning Post”, which has this draft contract.

For the EU states concerned, which block Huawei and other Chinese telecom equipment suppliers from accessing the 5G market, some of the Chinese contract commitments would have been blocked. The EU negotiators apparently did not agree to this. However, the episode illustrates how increasing tech nationalism is changing world politics.

also read

Europe wants to be at the forefront. In December, EU Industry Commissioner Thierry Breton and Vice-Commission President Margrethe Vestager presented their plans for comprehensive digital regulation. Brussels’s claim: The new rules for digital companies and markets should become a blueprint for tech regulation around the globe. No more and no less.

The reality is currently different. The episode from the EU-China negotiations clearly shows that China and the USA in particular are in the process of negotiating the digital sphere among themselves. As in the case of Huawei, the EU must be careful not to be ripped apart between the two tech great powers.

China and the USA are increasingly pursuing a tech nationalism that could harm European companies in the long term. The Chamber of Commerce of the European Union in China, which represents European companies that do business locally, is now warning of this.

Technologies are shared between China and the US

Together with the renowned China research institute Merics, she analyzed what the increasing economic unbundling of China and the rest of the world means for European companies. The result: In the digital industries in particular, there is a threat of considerable upheaval.

“The technologies that will shape our societies and economies and that are playing an increasingly important role in all areas of the economy will be divided between two of the three largest economic areas in the world,” write the authors of the report. China and the USA largely agreed on the development of future technologies and their application.

In fact, the technology world is rapidly deglobalizing. China and the USA are disentangling their technology sectors, increasingly isolating them from each other. The USA, for example, is banning Huawei and other Chinese suppliers from the latest generation of cellular networks and is looking for allies around the world to exclude Chinese suppliers from other networks and technologies.

Source: WORLD infographic

China has been relying on domestic tech companies for a long time. The internet there is largely independent of the rest of the world. Chinese consumers, for example, hardly or not at all use the services of the major US providers Google or Facebook.

“The US is moving into a world in which Chinese technology is to be wiped out of the supply chains, while China is creating state-sponsored national champions that dominate a largely independent ecosystem of domestic technology,” the analysts write.

This is becoming a dilemma for European companies. Their value chains are global and require inputs from both the US and China. But in a world where these two big markets lock out each other’s technology, companies doing business with both sides get a problem.

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Still-US President Donald Trump and EU Commission President Ursula von der Leyen: Farewell from office with punitive tariffs against the EU

In this world of increasing tech isolation, European companies have only two options if they want to continue doing business in both markets. On the one hand, you can offer products that specifically target the two markets. However, this is far more complex in the digital sector than in conventional industries.

If you wanted to sell cars in Great Britain, you had to build the cockpit upside down. Compared to the digital, this is still simple. Research and development and the logistics chains must be set up for each of the two markets. Thats expensive.

A second possibility would be to build hardware and software modularly: All those parts that can be used in both markets, for example because they come from Europe, could be developed and built for all customers, and only those parts that are critical could built specifically for the respective markets and exchanged depending on the customer. From the company’s point of view, this is also expensive.

European companies could be the losers

In digital globalization, European companies are in danger of becoming the big losers. “Every step towards more economic decoupling causes further damage to companies,” write the authors of the report. And they warn that affected companies must think this development through to the end.

“Techno-nationalism is increasing worldwide, and therefore one has to analyze what the possibility of a complete separation of the digital spheres would mean,” they write. In a survey by the Chamber of Commerce, some companies – especially those for whom China only accounts for a small part of international sales – stated that the digital unbundling would ultimately endanger their business in China.

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After years of negotiation, the investment agreement with China is in place.  However, EU politicians are demanding that Beijing now has to do more with sustainability and workers' rights.

Because economies of scale would not apply if they had to develop and produce separately for their Chinese customers, the China business would no longer be profitable, so they would have to give it up completely. Others with higher market share in China said they needed to restructure their businesses.

In both cases, this means less investment, fewer jobs and, for the end customer, higher costs and less choice, according to the report. Apparently, even the experts do not see any other way out of the dilemma.


Huawei first 5G provider with NESAS certification

Huawei’s 5G and LTE devices have passed tests of the global cellular standard 3GPP. Huawei is thus the first provider to have successfully passed all of the GSMA assessment criteria. […]

Huawei is playing a pioneering role in 5G. (c) Pexels

The 5G and LTE components from the global technology provider Huawei Technologies have passed the SCAS (Security Assurance Specifications) tests of the 3rd Generation Partnership Project (3GPP). 3GPP is a worldwide cooperation of standardization committees for standardization in mobile communications, specifically for UMTS, GSM, LTE and 5G. After a successful NESAS audit and 3GPP-SCAS test by GSMA, Huawei is the first 5G and LTE provider to officially pass the GSMA’s NESAS assessment. The GSMA represents the interests of mobile operators worldwide and unites more than 750 operators with nearly 400 companies in the broader mobile ecosystem.

The security tests were carried out by DEKRA, the first accredited NESAS security test laboratory in Europe. The tests include general security of network products, security of air interfaces, and basic vulnerability tests such as data and information protection, encryption and integrity protection of air interfaces, robustness and fuzz tests.

“In the 5G era, NESAS offers a standardized and effective cybersecurity assessment that the communications industry can use to ensure fairness. The assessment is also a valuable reference point for stakeholders. We advocate and support NESAS and invite the entire industry to work together to drive the development of an even more secure wireless market, ”says Devin Duan, Head of 5G E2E Cybersecurity Marketing at Huawei.

NESAS as an indicator of cybersecurity

NESAS provides an industry-wide security framework to enable improvements in security levels across the wireless industry. It is a voluntary program that enables network equipment vendors to subject their product development and lifecycle processes to a comprehensive security audit.

GSMA NESAS is intended to ensure that the corresponding devices meet the security and reliability requirements of the system for 5G networks. The integrated assessment process avoids fragmented assessments and the resulting costs, while improving the transparency of security protection levels in the industry through visual and measurable results. NESAS covers 20 assessment categories, defines security requirements and an assessment framework for 5G product development and product life cycles.


Honor officially reveals the launch date of Honor V40 .. and these are its specifications – Erm News

"Honer" Officially reveal the launch date of Hon ...

The Chinese company “Honer” officially revealed the date of the Honor V40, which supports the fifth generation technology, on January 12th. Honor has published a video clip on the Weibo website, which gives an overview of the device

The Chinese company “Honer” has officially revealed the date of the Honor V40, which supports 5G technology, on January 12th.

And “Honor” published a video clip on the site “Weibo” gives a glimpse of the upcoming device, as the smartphone contains a curved screen with a hole in the upper left corner for the selfie camera.

The phone has keys to adjust the volume and the power button on the right side, and at the bottom, there is a USB-C port surrounded by the SIM card slot, microphone and speaker.


Reports had indicated that the V40 would look similar to the Huawei nova 8 Pro 5G, however, “Honer” did not reveal further details about the specifications of the V40 so far, while reports revealed that the smartphone will be powered by the Dimensity 1000+ SoC processor with a screen. 120 Hz.

The Honor V40 is slated to launch with a 66W wireless charger, however, the battery capacity is still unknown.

Huawei announced in November that it had sold its “Honor” smartphone brand to a local consortium due to the tremendous pressure on its supply chain as a result of US sanctions.

The “Honor” brand was bought by a consortium of 40 companies that includes agents, distributors and other companies whose lives depend on this brand, according to what Huawei and the consortium announced in two separate statements.

To correct or make any comments desk[at]eremnews[dot]with


Inas Alsayed – Erm News


Nokia seeks leadership in 5G cellular standard

Espoo Nokia aims to regain leadership in the 5G cellular standard in 2021. It is expected that the margins in the network business will be around zero in the coming year, but there will be significant improvements in the long term, as the network equipment supplier announced on Wednesday in Espoo, Finland. The margin indicates how much profit a business brings.

Nokia says it aims to take a leadership role in technology across all business segments in which it wants to be active. The new CEO, Pekka Lundmark, pointed out that the world is facing major problems, such as environmental issues, resource scarcity, injustice and a standstill in productivity. Technology will be an important part in solving such problems. “We position Nokia as a leader in a changing world,” he said.

As emerges from the update of the corporate strategy published on Wednesday, Nokia wants to develop its products for the so-called Open RAN and virtual RAN. Open RAN is a type of architecture that allows operators to use accessories from different providers. The virtual RAN can be used as software for generic hardware.

Lundmark is pushing the telecommunications equipment manufacturer’s transformation as the introduction of fifth generation wireless networks picks up speed. He wants to sacrifice short-term profitability in order to gain shares in the 5G market, where the Finnish company does poorly on contracts. At the beginning of the year, Nokia was unable to get an order from Verizon Communications, which ultimately went to competitor Samsung Electronics.

The outlook for 2021 will not change at Nokia: The group continues to expect an adjusted margin of 7 to 10 percent.

More: Federal government tightens rules for Huawei in Germany


First details about the Huawei P50 Pro leaked

January 4, 2021 – The design of the next Huawei flagship, the P50 Pro, has found its way to the Internet via series leaks @Onleaks.

While Samsung is again toying with flat screens for its flagships, Huawei is apparently doing the opposite and sticking to its curved displays. No date has been leaked yet, but it wouldn’t be surprising if the Huawei P50 Pro is hot on the heels of the Galaxy S21 launch this month. If it does, it might still bear a striking resemblance to the P40 Pro, but look significantly different inside.

According to Twitter leaker @Onleaks, the Huawei P50 Pro will retain the characteristic waterfall display design, but will also set itself apart from the P40 Pro. So this whole is supposed to measure 6.6 inches and instead of a dual camera cutout, there could just be a single hole on the front of the phone for a single camera. Selfie fans might be disappointed, but Huawei may have a trick or two up its sleeve to make up for it.

Inside, Huawei should also make a big change and remove the magnetic speaker of the P40 Pro under the display. It strongly suggests that the market wasn’t too impressed with this feature, as “Slashgear” writes. According to Leak, there should be a standard earphone again.

Has more details @Onleaks unfortunately not, not even the most important of all. The phone maker is fighting for its future in terms of mobile processors and silicon, and it should be interesting to see how Huawei does. (swe)


Canada rejects acquisition of Arctic gold mine


With the acquisition of TMAC Resources, Shandong Mining would have got a gold mine and a port in Hope Bay on the Northwest Passage, the shipping route through Canada’s Arctic Islands.

(Photo: Reuters)

Ottawa The Canadian government has rejected the takeover of a raw materials company in Canada’s Arctic by the Chinese company Shandong Gold Mining. Apparently, security concerns led Ottawa to make this decision.

With the acquisition of TMAC Resources, Shandong would have got a gold mine and port in Hope Bay on the Northwest Passage, the shipping route through Canada’s Arctic Islands. China’s interest in TMAC also underscores the Arctic’s growing global strategic importance.

Canadian junior company TMAC announced Prime Minister Justin Trudeau’s government decision ahead of the Christmas holidays. TMAC is “disappointed” with the government’s decision. The transaction will not take place now, said company boss Jason Neal.

The Ministry of Innovation, Science and Economic Development, which under the “Investment Canada Act” examines applications for takeover of Canadian companies by foreign countries, did not itself publish a press release and did not want to comment because of the confidentiality required by law. Shandong Mining Co. Ltd. wanted to acquire 100 percent of TMAC Resources Inc. for 1.75 Canadian dollars per share.

That would have a market value between 200 million and 230 million Canadian dollars, the equivalent of up to around 150 million euros. The TMAC shareholders approved the takeover on June 26th with an overwhelming majority of 97 percent.

Relationship between Canada and China strained

The Chinese embassy said in a statement that Canada should “offer fair, open and non-discriminatory market conditions for companies from all over the world including China”. TMAC mines the precious metal in Hope Bay not far from the community of Cambridge Bay in its Doris gold mine.

The value of the transaction is rather low compared to other acquisitions in the raw materials sector. But the deal was politically explosive for several reasons. Canada’s relations with China have been strained since the chief financial officer of the Chinese telecommunications group Huawei, Meng Wanzhou, was arrested at Vancouver airport in December 2018 on a US extradition request.

Extradition proceedings against Meng are pending in a Canadian court. Immediately after Meng Wanzhou’s arrest, Canadians Michael Kovrig and Michael Spavor were arrested in China on charges of espionage. Canada regards this as retaliation, while China rejects any link between the two proceedings.

In addition, Shandong, which the Canadian media describe as controlled by the Chinese state, would have received a base with the takeover of TMAC in the middle of the Northwest Passage. It is expected that with advancing climate change the Northwest Passage will become navigable and thus gain in importance for international shipping.

In the narrow shipping route through the Arctic archipelago of Canada, a base could be of great strategic importance for China. It could therefore also have international significance. For Canadians, whose claims to sovereignty over the waterways in the far north are repeatedly questioned – also by the European Union and the USA – sovereignty over the Northwest Passage is a very sensitive question.


Protesters demand the release of Michael Spavor and Michael Kovrig, in Vancouver.

(Photo: Reuters)

The USA is critical of China’s Arctic policy

Therefore, even without official confirmation by the government in Ottawa, it is plausible that security and sovereignty considerations have influenced the balance between economic and national interests. This balancing must be made in accordance with the “Investment Canada Act”.

The daily newspaper Globe and Mail also reports on “pressure from the US government”. The US embassy in Ottawa initially did not comment on Canada’s decision. The US has been warning for some time that China could use civil research in the Arctic, investments in raw materials and expanding shipping as vehicles to gain a strategic foothold in the Arctic and ultimately strengthen its military presence.

US Secretary of State Mike Pompeo pointed this out in a very confrontational speech on the sidelines of the Arctic Council’s deliberations in the spring of 2019 in Rovaniemi, Finland. Pompeo sees “a new age of strategic engagement in the Arctic, with new threats to the Arctic and to all of our interests in this region”

In 2013 the Arctic Council granted China observer status. In 2018, China formulated its Arctic policy and, despite the distance between China and the Arctic, referred to itself as the “near Arctic State”. The self-designation underlines China’s interest in the region.

China wants to use the shipping routes and is interested in the raw materials of the Arctic, which include not only oil and gas, but also precious metals and technology raw materials. China sees shipping through the Arctic as the “polar silk road”.

Northwest Passage

For Canadians, sovereignty over the Northwest Passage is a very sensitive issue.

(Photo: dpa)

China’s new role in the Arctic

It is intended to help diversify trade routes and create a possible alternative to the southern maritime Silk Road through the Strait of Malacca, the Indian Ocean, Suez Canal and the Mediterranean. In its “Arctic Strategy” from June 2019, the US Department of Defense speaks of an “era of strategic competition” in the Arctic.

While China was mentioned rather marginally in earlier Pentagon documents on the Arctic, the relationship between economic initiatives and the possible resulting military presence is now described. In March 2020, Russia also underlined the importance of the Arctic for the socio-economic development of the country with a decree signed by President Putin “On the basis of the state policy of the Russian Federation in the Arctic for the period up to 2035”.

The Russian government makes it clear that the Arctic is of central geo-economic and geo-political importance for the country. Russia relies on the energy resources, metals and minerals that lie in the Arctic floor and in the sea near the coast. Investments should be made in the economic infrastructure, which is becoming even more expensive due to the thawing permafrost soil. The expansion of the military infrastructure is also a high priority.

The Canadian political scientist Rob Huebert from the University of Calgary therefore speaks of a new “strategic triangle” that is formed by the USA, Russia and China and for which he has found a handy abbreviation: NASTE, which stands for “New Arctic Strategic Triangle Environment” stands. Tensions in the Arctic are not caused by conflicts over Arctic issues, but by the rivalries of the great powers.

He sees the strained relationship between the US and Russia with the simultaneous rise of China, which challenges the US and possibly also Russia on the world stage, as a reason for new strategic and military activities in the Arctic.

It is obvious to him that for the US and Russia, the Arctic is the best starting point to strike at each other. This is one of the reasons the Arctic became “a region of overwhelming strategic importance when the US and Russia began to challenge each other’s interests in the international system”.

China is complicating the situation in the Arctic

It is not about the conflict “over the Arctic, but the use of military power from the Arctic, which gave this region its geopolitical significance”. According to Huebert, the fact that China is now calling itself the “near-Arctic state” in this strategic field and is competing with the USA and, in the longer term, with Russia as well, makes the situation even more complicated.

The historical bipolar system is now shaped by the appearance of three powers, and this makes the region “more important and more dangerous”. For TMAC, after the broken China deal, it is about securing the continued existence of the Doris mine.

It went into production in 2017, but is struggling with technical and structural problems. TMAC needs cash inflow to continue operations and repay loans. “The Hope Bay Gold Belt has considerable value,” said TMAC President Neal.

In an interview with the Nunatsiaq News published in Iqaluit, the capital of the Arctic Territory of Nunavut, he assured that the mine would not be “mothballed”. He had hoped that with the takeover by Shandong he would be able to put the mine on a secure financial basis.

He did not want to speculate about the reasons for Canada’s government rejecting the transaction, but admitted that this shows “that relations between Canada and China are currently not at all good”. The region’s Inuit organization is also counting on the Doris mine to attract the interest of domestic investors and financial institutions in view of the gold price, so that the mine can continue operations and jobs are secured for the people of Nunavut.

More: EU and China agree on investment agreements