https://www.nationalreview.com/2019/12/strategic-questions-for-eu-leaders-on-natos-70th-birthday/
Now is the time for Trump to press Macron, Merkel, and others on the security risks posed by China.
L eaders of North Atlantic Treaty Organization countries are gathering in London this week to celebrate the 70th anniversary of the alliance. It’s the perfect opportunity for President Trump to declare a big halftime lead in his campaign to persuade other members to meet their financial obligations to the alliance. It’s also an opportunity to meet one-on-one with European leaders and assess their readiness to confront the growing threats that China’s geopolitical expansion poses to alliance members.
France
Trump should take French president Emmanuel Macron’s call for a new EU army as a sign of interest in defending France, NATO members, and the West from new security challenges. But a few questions could help channel Macron’s vigor into efforts against more-immediate threats.
For example: Does France have any plan to evaluate the cybersurveillance risks posed by the Chinese undersea fiber-optic cable soon coming ashore in Marseille? Ironically named the PEACE cable, the fiber link will add a major new connection between the EU and China through interchanges serving Pakistan and Djibouti. The PEACE cable involved Huawei Marine Networks until U.S. attention on Huawei forced it to sell its subsea subsidiary. The buyer, Hengtong Optic-Electric Co. Ltd. is a Chinese conglomerate of more than 50 companies in telecommunications, cable systems, and electrical power. Hengtong became involved in the PEACE cable last October, when it set up a venture company for the project in cooperation with Hong Kong-based PCCW Limited, and appointed Huawei Marine to perform the undersea work. For its part, PCCW is partly owned by China Unicom Group, a Chinese state-owned telecommunications company. PCCW runs the electronic passport and identity card systems for the Hong Kong government, as well as the securities clearing system for the Hong Kong Exchange.
Such complexity is par for the course with Chinese state-owned enterprises (SOEs). But it should not confuse Macron, himself an investment banker trained in unraveling opaque corporate structures to get to the real decision-makers. The bottom line is that a Chinese technology SOE will soon have what French telecom operator Orange called a “gateway” into the EU data network, through the new digital window that Orange is building for the Chinese in Marseille.
Indeed, Marseille has become a major site of Chinese strategic expansion. The ancient port city is home to CMA CGM, a shipping and port operator that is the main partner in the Ocean Alliance with China’s COSCO Shipping — which now dominates global container shipping, port operations, and logistics services. Despite capital infusions from Chinese state lenders over the past several years, CMA recently announced it was selling its stake in 10 port terminals to China Merchants Port Holdings Co. Ltd., which already owns about half of CMA’s terminal business. The French line also sold two container ships to Shanghai Pudong Development Bank for an undisclosed price, and leased them back. The cash will help CMA finance its $1.7 billion purchase of CEVA Logistics, which operates one of the largest logistics businesses in the U.S. The stress on CMA’s financial resources prompted one rating agency to downgrade CMA’s debt, but more importantly, the bailout meant that Chinese operators had taken over the hard assets of a Western company in a strategically important sector.