ExclusiveIs China Capable of Capturing Taiwan’s President?

Welcome to China In Focus. I'm Tiffany Meyer. Our top story. China is ordering its banks to review billions in Venezuela-linked loans after Washington's capture of Nicolas Maduro, reflecting rising concerns over geopolitical shocks to lenders. The world's second-largest economy is struggling to maintain its shape. A private survey shows China's economic growth slowed to its weakest pace since six months last December. Maduro pleaded not guilty to drug and weapons charges at his first New York court appearance. Meanwhile, Switzerland has frozen the assets of Maduro and his close associates. And President Trump warning Venezuela's interim leader she could face an even harsher situation than Maduro. A bold act of deterrence or a dangerous precedent? The U.S.'s capture of Maduro is sparking debate over whether Beijing could attempt something similar against Taiwan's president. Experts weigh in. And South Korea's president is visiting China this week, hoping to boost ties and economic cooperation. China wants South Korea to side with it over the Taiwan issue, unlike Japan. Whereas South Korea wants Beijing to pressure North Korea. How will negotiations play out? China is reportedly ordering its banks to assess their financial exposure to Venezuela after the U.S. captured its former leader Nicolas Maduro, a longtime ally of Beijing. The move earlier this week is raising major concerns for Chinese banks looking to recoup billions in outstanding loans. China's top financial regulator has ordered policy banks and major lenders to report their Venezuela-related lending and tighten risk monitoring. That's according to Bloomberg sources on Monday. The move reflects growing concern in Beijing as geopolitical tensions threaten China's investments in the region. Venezuela has been a key Chinese partner for years. In the mid-2000s, China was in need of oil and Venezuela needed money. The two countries struck a trade partnership centered on a loans for oil arrangement. According to AidData, a Virginia-based research institute, claims China's overall loans to the country since 2000 has reached over $100 billion. The country now owes an estimated $10 billion to Beijing. But clearing its debt has been a long-term issue for Venezuela. U.S. sanctions and Venezuela's economic slumps have forced China to accept oil instead of cash. But now, Washington's pressure campaign could make the process more difficult. On Saturday, U.S. forces captured the country's leader, Nicolas Maduro. Shortly after that, President Trump claimed that the United States was ready to take over Venezuela's oil industry. Secretary of State Marco Rubio says the U.S. military will block sanctioned oil tankers until Venezuela opens its energy sector to foreign investment. The move could result in Venezuela shifting its priorities to the Washington over repaying its debt to Beijing. Even if Venezuela's oil industry helps repay some Chinese loans, a stronger U.S. presence in Latin America poses new risks for China's lenders. Next, more news on China's economy. A private sector survey on Monday shows China's service sector growth in December hit its slowest pace in six months. The slowdown comes as new business growth weakened and foreign demand declined. The rating dog China General Service PMI is complied by S&P Global. It says China's PMI data in December dropped to 52, the lowest reading since June. PMI stands for Purchasing Manager's Index, with 50 points marking the line between economic expansion and contraction. The survey tracking about 650 Chinese companies shows firms have been laying off employees for a fifth straight month due to rising input costs. It added that falling exports, fewer foreign tourists and a shrinking job market have all contributed to the decline. China's economy struggled to grow last year amid a longstanding real estate crisis, deflation and trade tensions with the U.S. and other major markets. Although official data projects 5% GDP growth this year, many economists say it likely overstates the actual situation. Before we dive into an expert's insight on why China is not able to capture Taiwanese President Lai Ching-de, here's a message from our sponsor. As we report every day, global markets are becoming more uncertain. China's growing economy and growing tensions with the U.S. are reshaping the financial landscape, and China is buying gold at record rates to diversify its foreign reserves and decrease its reliance on the U.S. dollar. It isn't just countries that can use gold to protect their wealth, it's individuals as well. That's why we believe in protecting what's real. Physical gold and silver from American Hartford Gold offer stability when markets turn unpredictable. 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So this was senior judge Alvin Hellerstein. He's 92 years old and he has been known for handling high-profile cases such as Harvey Weinstein and the 9-11 cases. So he basically told them in the beginning, both of them, that this would be a fair trial and a fair proceeding and that he was going to ensure that everything was fair for them. He then summarized the indictment. Four of the counts are against Nicolas Maduro and three of the counts are against his wife. And those include, of course, narco-terrorism conspiracy. They also include weapons charges and also cocaine trafficking. The judge then asked both of them, you know, what their names were, who they were, and asked them whether or not they were guilty. Now, Nicolas Maduro answered the question this way. He said, I am innocent. I am not guilty. I am a good man. Now, his wife said that she was the first lady of the Republic of Venezuela. And later she said, I am not guilty. I'm completely innocent. We waited for about an hour and a half. And I noticed that there were a number of DEA agents. These are the drug enforcement agents that actually, where he was processed when he came into the country on Saturday. They were all throughout the courthouse. There were state police, there were U.S. marshals all walking through the halls as we were waiting. I believe he was very calm. His wife seemed like she was very calm. But we did find out later on that they're both claiming that they were injured. Her attorney said that she was injured during the arrest and that she might have some bruised ribs. They both asked for health assistance, that they be provided with medical care during this proceeding or during their time here in the U.S. and in prison. The judge assured them that they would get that. Well, what happens next is that the prosecution has to provide the defense with all of the documents and information to support their claims against both defendants. They have said that they are prepared to provide them with voluminous records that will support their claims. They are prepared to provide those immediately after some discussion. The defense agreed with all of that. They asked for 60 days in which to exchange these documents and give them a little bit of time to discuss and see where they're at. So they asked the judge to let them return on March 17th to give an update of their status. Now, the Maduro's, both of them have waived their right to a speedy trial so that this could happen, so that these documents could be exchanged and that they have time to take a look at them and also that they have time to decide whether or not they want to get a different attorney. Now, both of these attorneys were provided by the court. They're court-appointed attorneys. So the Maduro's have an opportunity to get their own counsel if they so choose, and they'll have to pay for that. Both he and his wife kept on headphones so that they could have translation throughout. So there was translation throughout. He spoke only in Spanish. She spoke only in Spanish. And then there was court-appointed interpreters who actually, you know, translated whatever they had said. Switzerland has responded to Maduro's capture by freezing all his assets in the country. The Swiss government said this will prevent any assets that may have been obtained illegally from being moved out of the country. This freeze takes effects immediately and applies to Maduro and people close to him. The Swiss government did not say how many assets are linked to Maduro. It added that no current member of Venezuela's government is affected by the freeze. The freeze will remain valid for four years until further notice. Venezuela's government is ordering police to arrest anyone involved in supporting the U.S. military operation in the country. It's the latest attack on the rights of the Venezuelan people by the nation's government. The order to arrest people sympathizing with the operation is part of a decree the government published. The document orders law enforcement to immediately begin the national search and capture of everyone involved in support of the operation. The decree has been enforced since Saturday but was published in full today. The interim leader of Venezuela is former Vice President Delsi Rodriguez. She condemned the capture of Maduro and his wife and called for their immediate release. President Trump issued a stern warning to her. Listen. I just say that she will face a situation probably worse than Maduro because you know Maduro gave up. The president says a second strike on Venezuela is possible if its leaders quote do not behave. President Trump also discussed the current leadership in Venezuela aboard Air Force One today. And don't ask me who's in charge because I'll give you an answer and it'll be very controversial. What does that mean? We're in charge. Have you spoken with her? We're in charge. Secretary of State Marco Rubio also discussed oil and the influence of U.S. adversaries in the region speaking on Meet the Press. What we're not going to allow is for the oil industry in Venezuela to be controlled by adversaries of the United States. You have to understand why does China need their oil? Why does Russia need their oil? Why does Iran need their oil? They're not even in this continent. This is the western hemisphere. This is where we live and we're not going to allow the western hemisphere to be a base of operation for adversaries competitors and rivals of the United States. Rubio says the operation in Venezuela didn't need congressional approval because it was a law enforcement operation with no invasion or occupation. He added that the Pentagon will maintain its military blockade around Venezuela to apply leverage on the country's socialist regime. Rubio criticized reports that the U.N. denied Maduro's involvement in the drug trade. I don't care what the U.N. says. The U.N. doesn't know what they're talking about. Maduro is indicted by a grand jury in the southern district of New York. Nicolas Maduro is an indicted drug trafficker in the United States and he's a fugitive of American justice. A significant portion of Maduro's security team was killed in the U.S. operation according to Venezuelan officials. U.S. Ambassador to the United Nations Mike Waltz defended Washington's capture of Nicolas Maduro on Monday. China and Russia condemned the operation. Here's Waltz. There is no war against Venezuela or its people. We are not occupying a country. This was a law enforcement operation in furtherance of lawful indictments that have existed for decades. The United States arrested a narco trafficker who is now going to stand trial in the United States in accordance with the rule of law for the crimes he's committed against our people for 15 years. During an emergency session of the United Nations Security Council, Ambassador Waltz tried to make it clear that this was not an attack on Venezuela. Instead, Waltz insisted the military force was used to capture a wanted criminal. He went on to criticize Maduro for attacks on Americans through drug trafficking and cartels, which President Trump recently labeled as terrorist organizations. The United States wants a better future for Venezuela. We believe a better future for the people of Venezuela and for the people of the region and the world is stabilizing the region and making the neighborhood that we live in a much better and safer place. The UN Security Council's 15-member body is split over the forceful capture of Maduro. A little more than half are condemning the decision. A signal of deterrence or an act that could embolden Beijing. Debates are surfacing over whether the U.S.'s daring capture of Nicolas Maduro sets an example for China, suggesting it could capture Taiwan's And today's Juliet Song has the story. A swift capture of a sitting leader in the dead of night. The U.S. military's operation to capture Venezuelan leader Nicolas Maduro over the weekend has sent shockwaves worldwide. Now, opinions are divided on whether the Chinese Communist Party will pull similar tactics on Taiwan's President Tang Jinyuan, a China affairs analyst, says Beijing does not have such capability. He noted that infighting within China's military remains intense. A little over two months ago, the Chinese regime ousted nine top generals, including the country's number two military officer and the former head of the theater command facing Taiwan. The regime has already removed a good number of its own generals even before a war over Taiwan has begun. Retired U.S. Marine Colonel Brett Newsham says China has been preparing for a similar operation for years. They have just identical mock-ups of the Taiwanese government buildings, the presidential palace, out in the desert. And their special forces train constantly for such an assault, the so-called decapitation strike. Despite Beijing's preparations, Newsham believes China's intelligence isn't as strong as it thinks. Hours before being captured, Maduro met with China's special envoy for Latin America. If they sent their top delegate to Venezuela, the next day the Americans grabbed Maduro, and apparently the Chinese didn't know about it. You'd think if they did, they'd have told Maduro what was coming. Tang says China doesn't have the ability to cripple Taiwan's air defense network like the U.S. military did to Venezuela. It's a key step in the operation before U.S. special forces reach the building where Maduro lived. As the force began to approach Caracas, the joint air component began dismantling and disabling the air defense systems in Venezuela, employing weapons to ensure the safe passage of the helicopters into the target area. Tang Jinyuan says the seizure of Maduro sent a strong signal of deterrence to Beijing. The U.S. accuses Maduro of importing thousands of tons of cocaine into America. Trump is signaling that if a country threatens U.S. national interest in any way, Washington will not stand idly by. Tang added that the regime change in Venezuela is a blow to the CCP. He said the country is like a nail Beijing installed in America's backyard to distract the U.S., keeping it from focusing on the threat posed by the CCP. Juliet Song, NTD News. Coming up, South Korea's president is visiting China this week, hoping to boost ties and economic cooperation. China wants South Korea to side with it over the Taiwan issue, unlike Japan, whereas South Korea wants Beijing to pressure North Korea. How will negotiations play out? A geopolitical expert breaks it down. More on that after the break here on China In Focus. Welcome back to China In Focus. I'm Tiffany Meyer. South Korean President Lee Jai-myung is visiting China this week, marking the country's first such visit in over six years. Lee's meeting with Chinese regime leader Xi Jinping comes as his administration tries to walk a tightrope between the United States and China. Meanwhile, Beijing is making its demands to Seoul clear. On Monday, the South Korean president said he wants to open a new phase for relations with China, and China's Xi appears to be keen with Lee's proposals, suggesting the two countries should look after each other's core concerns. Analysts say Beijing is eager to boost ties with South Korea now because relations between China and Japan has fallen to the lowest point in years. It comes after the Japanese prime minister's remarks, suggesting a military response if China invades Taiwan. South Korea hopes Beijing will pressure North Korea on missiles, but it remains unclear how much Beijing would do in reality. Just as South Korea and Japan are U.S. allies, North Korea is China's only treaty ally. Beyond geopolitics, Lee's delegation includes more than 200 South Korean business leaders. The two countries have signed 15 cooperation agreements in areas like technology and transportation. Lee also called for more cooperation in artificial intelligence, boosting cultural exchanges and supply chain investments. Retired Marine Colonel and Center for Security Policy senior fellow Grant Newsom weighs in on South Korea's president. He points to the leaders' left-leaning views and a more sympathetic stance toward North Korea and China. Newsom also highlights Beijing's backing of North Korea, saying China could curb the country's threat if it chose to, but hasn't. Grant Newsom, thank you so much for joining us. Great to have you back on the show. Oh yes, glad to be here. When it comes to China and South Korea, Lee is the first sitting South Korean president to visit China since 2019, and his first trip to South Korea in about 11 years there. Is this an indicator of growing regional stability and cooperation, or how should we read that relationship? It depends on your point of view. From the Chinese perspective, to them it's a good thing to have a South Korean president and administration that is aligned with you, that sees you as the benign force, as the better bet. So they're glad to have Lee come to China and have a nice series of meetings where they say nice things, because they know that at a minimum, this is going to roil the waters inside South Korea domestically, but also it's going to cause some friction in the South Korea-U.S. relationship if the Lee administration is not careful. The Chinese are glad to see this. So from a United States perspective, the leftists who run South Korea now, they are not great fans of the alliance. In fact, the elder brother of the current prime minister, who has immense influence, he has described it as an imperialist trap, the U.S.-South Korea relationship. He's even called for getting the imperialists out of our land as soon as possible. So from a U.S. perspective, they're trying to ignore it and paper it over and not pick a fight over this. But the solidity of the U.S.-South Korea alliance has to be in some question. It's not as certain as it seemed, no matter if U.S. officials and everyone else calls it a rock-solid alliance. You have an administration that is sympathetic and sees South Korea's interests as better aligning with the PRC, and has a very hard to understand affection for North Korea, of all places. So it's not crumbling yet, but the long-term prospects, you do have to have some concern. One of the big difficulties that these leftists have in South Korea is that most South Koreans, let's say 90% of them, don't like China and don't like the Chinese. The vast majority of them do support the U.S.-South Korea alliance. That is a real break, a restraint on what Lee Jae-myung can do. So as long as this administration is in power and is behaving the way they are when it comes to China, to North Korea, but also domestically seeking to establish a one-party state, and gradually taking control of every lever of power, and they're pretty far along on that. As long as that's the case, the stability of the U.S.-South Korea alliance has to be in some question. And for regional stability, you do have to have the United States and its allies, Japan, Australia, the Philippines, South Korea, even. They do have to be aligned with each other in step to defend against an aggressive expansion, expansionist China, and to deal with really China's cat's paw, the North Koreans, who are now somebody that people have to take seriously, given the weaponry that they have. Grant Newsham, as always, thank you so much for joining us. Thanks very much. Glad to be here. That's all for today's China In Focus. I'm Tiffany Meyer. If you have any feedback on the show or have something you'd like to see us cover, send us an email at chinainfocusntd.com. We'd love to hear from you. For on-the-clock original news coverage, visit us at ntd.com or download our NTD app. Thanks for watching. See you tomorrow.