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What Russia’s invasion of Ukraine means for China

Predicting future geopolitics has become the new norm barely three weeks since Russia’s invasion of Ukraine shocked the world - despite the accumulating evidence that was what Vladimir Putin intended from the start. Chief among these is the effect on China and its global aspirations, especially with regard to Taiwan.
Specifically, attention has focused on Beijing’s long-standing ambition to conquer and annex Taiwan to the People’s Republic of China. There are of course big differences between Ukraine and Taiwan but there are also important similarities. Xi Jinping denies that Taipei is entitled to any territorial or political sovereignty.
Putin viewed Ukraine’s growing democracy and ties with Europe as a threat to his regime. Beijing also fears a robustly democratic Taiwan that is bolstering relations with the US and its allies. And both Russia and China can deploy powerful militaries, particularly compared with their current and potential targets’ forces.
There end the similarities.
For Xi Jinping, Putin’s widely-condemned Ukrainian operation is clearly a nightmare. The images of Putin’s participation in the opening of the Winter Olympic Games as a guest of the Chinese president are still fresh in the eyes of the international community. Many people wonder whether Xi actually gave the go-ahead to Russia or whether Putin is merely suggesting he has Beijing’s backing even if this is not actually the case.
Whether or not he had prior knowledge of Putin’s plans, two things are almost certain: Xi Jinping doubtless expected Russia’s battle-hardened military to quickly defeat the Ukrainians, and that the international community’s response would be muted.
Neither of these scenarios has happened: Ukraine’s armed forces have been impressively resilient in fighting the Russian invaders while the US, Europe and Asia – including Japan and Singapore - have been surprisingly tough and more or less united in coordinating sanctions against the Kremlin. Putin has managed to bolster the EU and reinvigorate NATO. The response has been a package of extraordinary measures - including a dramatic shift on German defence spending - in the hope of averting the largest European conflict in decades.
The parallels are clear: a fortnight into Putin’s action against his neighbours, Chinese fighters penetrated Taiwan’s airspace just after Taiwanese President Tsai Ing-wen expressed her support for Ukraine and other Taiwanese politicians sought to draw a parallel between Russia’s dispute with Ukraine and China’s with Taiwan.
Beijing, a permanent member of the UN Security Council (along with the US, UK, France and Russia) abstained when the council voted to condemn Russia on February 25, a day after the invasion began. But it also offered to mediate between Moscow and Kyiv shortly afterwards.
Since the war began, Beijing has tried to position itself further away from Russia than seemed the case after Xi and Putin met. But China’s Foreign Ministry has refused to call the attack on Ukraine an “invasion” and maintained that negotiations are needed for resolution.
On Monday 7 March, on the 12th day of Moscow’s aggression against Kyiv, China’s Foreign Minister Wang Yi called Russia Beijing’s “most important strategic partner” amid its continued refusal to condemn the invasion of Ukraine, adding that friendship between the two peoples is “iron clad”.
Nevertheless, China and Russia currently enjoy the best relations they have had since the late 1950s. Although they have no formal alliance, the two countries do have an informal agreement to coordinate diplomatic and economic moves, and build up an alliance against the US.
But experts have speculated that too much importance has been attached to the friendship between Beijing and Moscow, especially economically. It is true that economic relations between both countries have intensified in recent years. But the Russian economy is worth just one-tenth of China’s and is not amongst its top trading partners.
As a result, the value of trade relations is high, especially in the energy sector, but not so high as to call into question relations with the rest of the world. Russia has been increasingly isolated by the international community – for example the Danish shipping company Maersk has suspended the shipments to and from Russia.
Beijing is unwilling to follow the same path, given the 20% increase in its trade with the rest of the world in 2021. China is thus very concerned about the economic implications of the Ukraine war, because in case of isolation Russia alone could not constitute an alternative market and because it fears that in the long run its concerns about financial and technological "decoupling" may come true.
“Under current international circumstances, China can only proceed by safeguarding its own best interests, choosing the lesser of two evils, and unloading the burden of Russia as soon as possible,” wrote the international affairs analyst, Hu Wei, the chairman of Shanghai Public Policy Research Association. “At present, it is estimated that there is still a window period of one or two weeks before China loses its wiggle room. China must act decisively.”
Putin’s senseless assault on Ukraine is mainly negative. But it could – fingers crossed!- have a more positive impact in remaking a new and more equitable world order, especially with regard to China’s regional and global ambitions.
BY: IAN BLACK
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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