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CHINA

Reinfeldt ‘concerned’ over Saab deal collapse

Swedish Prime Minister Fredrik Reinfeldt said Thursday he was worried about the failure of Chinese rescue funding for the Saab-Spyker auto group but stressed the state would not step in to rescue the cash-strapped brand.

Reinfeldt 'concerned' over Saab deal collapse

“It naturally raises concern that the partners couldn’t get all the way to a definitive agreement,” Reinfeldt told reporters in the western city of Gothenburg, near Saab’s factory in Trollhättan.

“It is the owners and the management of Saab that must take this forward and find long-term financing. We in the government have done all we could to facilitate the process,” he said.

The Swedish government has repeatedly said it would not offer financial assistance to Saab.

The beleaguered carmaker was bought in January 2010 by Dutch firm Spyker after not turning a profit during 20 years under General Motors.

Its cash difficulties became evident in April when the Saab plant came to a halt “until further notice” because suppliers had halted deliveries over unpaid bills.

Saab’s rescue appeared to be near certain when earlier this month, Spyker announced China’s Hawtai would inject €150 million ($212.5 million) of urgently needed cash into Saab in exchange for a stake in Spyker.

But on Thursday Spyker said the deal was off “with immediate effect” because Hawtai Motor Group had been unable to obtain the green lights it needed.

“I fully understand that the workers at Saab are worried about their jobs and of course I hope for a positive resolution,” Reinfeldt said.

Swedish Enterprise Minister Maud Olofsson meanwhile said she was also concerned for staff and Saab’s suppliers, many of whom were forced to lay off employees when Saab’s assembly line came to a halt.

“I hope Victor Muller will succeed in his ambitions to find a new partner,” she said.

“Saab needs capital to get production going and pay its suppliers … a strong partner with plenty of capital and commitment is required,” she said.

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CHINA

China derides Copenhagen democracy meet as ‘political farce’

China on Tuesday blasted a democracy conference in Copenhagen attended by Taiwan's president and a Hong Kong activist alongside Danish government officials this week, qualifying it a "political farce".

China derides Copenhagen democracy meet as 'political farce'
Demonstrators gathered outside the Copenhagen Democracy Summit on Tuesday. Photo: Emil Helms/Ritzau Scanpix

The Copenhagen Democracy Summit was held Monday and Tuesday in the Danish capital and organised by the Alliance of Democracies, an organisation targeted by Beijing sanctions in March and founded by former NATO boss Anders Fogh Rasmussen.

In addition to Taiwan’s President Tsai Ing-wen and Hong Kong democracy activist Nathan Law, Danish Foreign Minister Jeppe Kofod also participated in the forum by video link, which Beijing said violated “the one-China principle.”

“This summit is a political farce,” the Chinese embassy in Denmark wrote in a statement published on Tuesday. “Inviting those who advocate Taiwan and Hong Kong ‘independence’ to the meeting violates the one-China principle and interferes in China’s internal affairs,” it said.

“Some hypocritical western politicians are good at meddling in other countries’ internal affairs and creating divisions and confrontation in the name of ‘democracy’ and ‘freedom’. They are bound to fail,” it added.

At the conference on Monday, Kofod said it was “deplorable” that Beijing had imposed sanctions on 10 European individuals and organisations in response to EU sanctions on Xinjiang officials over their actions against the Uyghur Muslim minority.

Like most countries, Denmark applies the one-China principle — under which Beijing bars other countries from having simultaneous diplomatic relations with Taipei — though it does maintain relations with Taiwan.

Cut off politically from the rest of China since the end of the Chinese Civil War in 1949, the territory is self-governing but is not recognised by
the United Nations.

Beijing considers Taiwan a rebel province that will one day return under its control, by force if necessary.

China’s sabre-rattling has increased considerably over the past year, with fighter jets and nuclear-capable bombers breaching Taiwan’s air defence zone on a near-daily basis.

“Our government is fully aware of the threats to regional security, and is actively enhancing our national defence capabilities to protect our
democracy,” Tsai told the conference in a video address on Monday. US President Joe Biden is expected to present his China strategy soon, as
calls mount for him to publicly commit to defending Taiwan militarily in the event of a Chinese attack.

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