China refutes Philippine government's denial of Ren'ai Jiao agreement

China on Saturday denounced the Philippine government for denying a joint agreement reached between the two countries over Ren'ai Jiao.

China has always been committed to properly managing maritime differences through dialogue and consultation with the Philippines and has made relentless efforts in this regard, said a spokesperson for the Chinese embassy in the Philippines when addressing the press. He added that the "gentlemen's agreement" is a concrete outcome of such efforts.

Recently, a number of senior government officials of the Philippines have been denying that the Marcos administration has negotiated, and reached agreement with China on arrangements for managing the Ren'ai Jiao question.

Philippine Secretary of National Defense Gilberto C. Teodoro Jr. said in a statement last week that the Department of National Defense (DND) is not aware of, nor is it a party to, any internal agreement with China on Ayungin Shoal (Ren'ai Jiao) since President Ferdinand R. Marcos Jr. took office and has not had any contact with any Chinese government officials since last year.

To follow up on the important consensus between the two heads of state to deescalate tension in the South China Sea, the Chinese side and the Philippine side through the Armed Forces of the Philippines' Western Command (AFP WESCOM) agreed on a "new model" for the management of the situation at Ren'ai Jiao early this year after multiple rounds of discussions, said the Chinese spokesperson.

The spokesperson noted that either the "gentlemen's agreement" or the "new model" is a confidence-building measure aimed at managing disputes, avoiding conflicts and maintaining peace.

During the discussion the AFP WESCOM has made repeated confirmation that the "new model" has been approved by all key officials in the Philippine chain of command, including the Secretary of National Defense and the National Security Advisor, said the spokesperson, adding the communication and negotiation on this subject matter is kept on record in every detail by the Chinese side.

Thanks to the "new model," front-liners of both sides had guidance to follow on how to interact with each other, which made the resupply mission on February 2 a smooth one and the AFP spokesperson described this resupply mission as "flawless" in a post on social media X on the same day, the Chinese spokesperson said.

Noting China has always attached great importance to communication and dialogue with the Philippine DND and the AFP, the spokesperson said that Chinese Ambassador to the Philippines exchanged views with Teodoro on July 5, 2023 on China-Philippines military relations and maritime issues, during which, the Philippine side was briefed on the "gentlemen's agreement" on the management of Ren'ai Jiao.

Readouts of the meeting were released respectively by the DND and the Chinese Embassy in the Philippines, the spokesperson noted.

The above are facts, not narratives or inventions, said the spokesperson, stressing that China is always committed to managing the situation at Ren'ai Jiao and maintaining dialogue and communication with the Philippines in a responsible manner.

It is regrettable that despite the internal understandings and arrangements, peace and tranquility was disrupted again and again at Ren'ai Jiao, the spokesperson added.

China refutes Philippine government's denial of Ren'ai Jiao agreement

The Russian auto market has undergone a major shift in recent years,with Chinese brands surging in popularity and now capturing over half of new car sales in Russia.

Following Russia's conflict with Ukraine, major companies from Germany, the U.S., South Korea, and Japan ceased official sales, supplies, and services in the country, leading to a significant increase in prices for their cars and spare parts.

This void has been filled by Chinese car brands, whose market share in Russia surged to over 60 percent in 2023, nearly doubling from the previous year. In contrast, China held just a 9 percent market share in February 2022.

Ekaterina, an owner of a Chinese car who switched from a European brand, cited the complications in servicing her old car after Western car brands exited the Russian market. She highlighted the stability of Chinese car prices as a key factor behind her decision.

"A year ago, many people had concerns about whether to switch to a Chinese-made car and some of my friends decided to do so. People looked at the car, listened to the pitch, and made the choice naturally because the price is stable," she said.

Sergey Tselikov, director of the analytical agency Avtostat, predicts further growth in 2024, as Chinese companies have already exported record volumes of cars to Russia.

"First, almost all other brands have stopped supplying to Russia. Automakers in South Korea, Japan, Europe and the U.S. have halted supplies amid fears of sanctions," said Tselikov.

Tselikov also pointed to the significant quality improvements in Chinese car manufacturing over the past five to seven years as another reason for their popularity in Russia.

The share of dealerships selling Chinese cars in Russia witnessed a remarkable increase, rising from 31 percent to 65 percent in 2023, while the number of models and modifications continues to expand. Chinese automakers have even re-purposed some factories previously used by Western car manufacturers.

Russia is also encouraging localization efforts, hoping to revive its own car manufacturing industry.

"The [Russian] Ministry of Industry and Trade and the government are stimulating and trying to ensure that the cars are not only imported but assembled in Russia and then hopefully localized. In Russia, this is a problematic endeavor because it is very difficult to produce cheaper components in Russia than those produced in China," said Tselikov.

Russian companies are seeking collaboration with Chinese firms to domestically assemble Chinese cars. Moskvich, a long-established Soviet-era car company, has started assembling Chinese cars under its own brand.

Chinese cars reshape Russia's auto industry as Western brands scale back