The China file is back on the desk of Canada's foreign affairs minister, Francois-Philippe Champagne. Not that it ever wandered very far.

As protests spread across China, citizens consider how far they can push Beijing; concerns of privatized healthcare as a virtual pediatric care service shuts down because of reduced government funding; meet Jeremy Brown, one of the real-life Cornish fishermen who inspired the musical Fisherman's Friends; Dr. Nasser Mohamed, an exiled gay physician from Qatar, campaigns for LGBTQ rights; Canadian super-Swifties throw celebratory Taylor Swift dance parties; and more.

The Wheat Ridge community is still reeling after the death of former boys tennis coach Tom Sabus.

Semiconductor Manufacturing International Corp., or SMIC, is manufacturing chips with features less than one-15,000th of the thickness of a sheet of paper.

A Chinese court has agreed to hear a lawsuit against Apple from Beijing Bodyreader, a developer seeking around $420,000 in damages after their children's posture correction app was removed from the App Store in 2020.


Bloomberg reports that the case – the first of its kind to be heard in Beijing's intellectual property court – bears similarities to Epic Games' 2021 lawsuit against Apple. Bodyreader claims Apple unfairly removed their app citing "dishonest" behavior, while also challenging the company's 30% commission on app purchases and its control over the iOS ecosystem.

According to court documents reviewed by Bloomberg, Bodyreader argues that Apple's enforcement of App Store policies is inconsistent. The developer notes that after their original app was removed, they successfully published an identical app under a different name, "Qilin Century," which remains available on the App Store. Closed-door hearings began Thursday and could conclude this week.

The hearing represents the first time Apple has been forced to defend its standard mobile platform practices against a Chinese developer. Earlier this year, Apple successfully fought off antitrust accusations from a Chinese consumer, but the company still went so far as to appeal to remove references to its market dominance from the ruling.

Bodyreader is seeking monetary damages, an apology, and a court declaration that Apple engages in unfair monopolistic behavior. The developer has also requested that Apple be required to allow third-party app stores and external payment links.

COVID-19 antibodies have been found in blood samples as early as September, 2019. China knew about the virus' transmission to humans months before it announced such to the world. Why has the media and our government not investigated this gross negligence, if not mass murder? Continue reading →

And so that is what I call the birth of this woke industrial complex. It is a new leviathan, a new monster, that is far more powerful than what Thomas Hobbes might have envisioned 400 years ago, and it is the biggest threat to individual liberty today. It is not big government alone. Its conservatives are reciting lines that they memorized in 1980, thinking that big government was the threat to individual liberty. Maybe it was in 1980. It's not today. It is this new hybrid of big government and big business and big government not just in the United States but big government in places like China, co-mingled with big business creating the actual threat to our liberty and our prosperity. Continue reading →

Robin Zeng, the billionaire founder of CATL , aims to reinvent the world’s largest battery maker as a green-energy provider and to slash the cost of developing electric vehicles, upending the economics of the industry that has powered its growth.

CATL , the world's top battery maker, will consider building a U.S. plant if President-elect Donald Trump opens the door to Chinese investment in the electric-vehicle supply chain, the company's founder and chairman, Robin Zeng, told Reuters.

In This Article: NINGDE, China (Reuters) - CATL, the world's top battery maker, will consider building a U.S. plant if President-elect Donald Trump opens the door to Chinese investment in the electric-vehicle supply chain, the company's founder and chairman, Robin Zeng, told Reuters. "Originally,…

This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. You can email the…

HONG KONG/WASHINGTON -- China has vowed to strengthen security after a hit-and-run attack in the southern city of Zhuhai killed 35 people, shocking the nation and highlighting what some experts see as an alarming pattern. On Tuesday evening, authorities revealed the scope of the devastation left…

China battery giant CATL would build US plant if Trump allows it, chairman says Trump wants to block Chinese EV, battery imports but open to US plants with American workers Contemporary Amperex Technology (CATL), the world’s top battery maker, will consider building a US plant if president-elect…

The ARJ21, COMAC's first commercially available plane, was rebranded on Tuesday to the C909. Chen Xiao/VCG via Getty Images China's COMAC is rebranding its regional jet to the C909, keeping with the naming style of its newer C919. That might not get COMAC more C909 sales, but it markets the plane…

The Chinese authorities are seeking to host a meeting with the representatives of major international economy-focused organizations to discuss its progress and the situation around the globe, the Sout...

Bunny Chan, who is a deputy to the National People’s Congress, and Paggy Chan, are the new owners of Twenty One Whitfield.

Cao Xin is a senior researcher at The Charhar Institute, a Beijing-based think tank. I had the opportunity to observe the American presidential election on the morning of Nov. 6 (China time) at the U.S. embassy in Beijing. For China, the world's second-largest economy, Donald Trump's victory…

Data from China's Zhurong rover has revealed what appears to be an ancient shoreline streaking through Mars' northern hemisphere.

The China-aligned threat actor known as MirrorFace has been observed targeting a diplomatic organization in the European Union, marking the first time the hacking crew has targeted an entity in the region. "During this attack, the threat actor used as a lure the upcoming World Expo, which will be held in 2025 in Osaka, Japan," ESET said in its APT Activity Report for the period April to

1. Trump taps Marco Rubio & Michael Waltz, known to be pro-India and tough on China, for top jobs  The Indian Express
2. Donald Trump Sets 'Existential' Battle Against China With Cabinet Picks  NDTV
3. Trump's NSA pick Mike Waltz's pro-India stand in 5 quotes  Firstpost
4. Trump's incoming NSA Mike Waltz wants US to dance cheek-to-check with India  The Times of India
5. Who is Mike Waltz, Donald Trump’s pick for national security adviser?  The Hindu

A nuclear-powered aircraft carrier, like American carriers, would be a major jump for China, giving its navy a global reach.

If Trump's proposed 60% tariff against China is enacted and the country responds aggressively, it could pressure some of America's largest companies.

The ARJ21 is now to be known as the C909. The renaming plays into COMAC's ambition to enter the global market.

Many fans of Huawei on Friday were disappointed that its much-anticipated phone, Mate XT - more than twice the price of the iPhone 16 Pro Max - was not available for walk-in customers.

ByteDance founder Zhang Yiming is China's richest person, with personal wealth of $49.3 billion (R872 billion), an annual rich list showed on Tuesday, although counterparts in real estate and renewables have fared less well.

China’s political chessboard: The 20th party congress 14 October 2022 — 1:00PM TO 2:00PM Anonymous (not verified) 30 August 2022 Online

As the CCP gathers for its quinquennial political event, experts analyse its national, regional and global relevance.

In October, the Chinese Communist Party (CCP) assembles to appoint new leaders and discuss political, social, economic and foreign policy priorities for the coming 2022–2027 period and beyond.

One of the key outcomes of the meeting of China’s political class is the future of current President Xi Jinping. Technically, as he is at the end of his second five-year term, Xi was due to step down this year. The next generation of leadership was supposed to step in, as the next stage of the party’s evolution takes place.

However, this is unlikely to happen. The president has consolidated his power, manoeuvring allies into key positions and developing a faction of support in the party. With ‘Xi Jinping Thought’ added to the party charter and China’s constitution and term limits removed, Xi shows no intention of stepping down.

However, the president is not all-powerful. Critics and alternative factions operate within the party. His second term has also had to contend with the botched early handling of the pandemic, worsening ties with the US, and a slowing economy.

In an increasingly unpredictable world, events in the 2022 Party Congress will be hugely impactful for China’s and global affairs. What trajectory will Beijing take?

Key questions the panel discuss include:

• How does the Party Congress function and what does it mean for domestic Chinese politics?

• Will President Xi’s political and economic legacies continue under new political leaders and policymakers?

• What does President Xi’s next role in China’s government tell us about his power?

• As the 20th CCP Party Congress takes place, is there unity and cohesion at the top of the political structure?

• Will the Party Congress have any impact on China’s international relations? Particularly the US?

 As with all Chatham House member events, questions from members drive the conversation.

Read the transcript. 

Russia–China defence and security relations: Insights from the expert community 13 September 2022 — 3:00PM TO 4:00PM Anonymous (not verified) 31 August 2022 Online

Experts share insights on Russia–China military, defence, and security relations. 

In the defence and security realms, Russia–China relations resemble more pragmatic cooperation based on shared, calculated interests than an alliance.

This event presents and discusses key findings from a recent expert survey conducted by Chatham House with the aim to gather insights on Russia–China military, defence, and security relations.

Survey responses helped identify areas of bilateral cooperation but also crucial friction points and obstacles that prevent the relationship from developing further, as well as policy pathways for the West.

Russia-China Defence and Security Relations

This project explores the military and security linkages between Russia and China.

The project seeks to provide a nuanced understanding of Russia-China relations in the defence and security realms.

It also seeks to understand Russian political and security perceptions regarding Chinese inroads into what Russia considers its ‘near abroad’, as well as other sources of irritation and tension in the bilateral relationship. It offers recommendations to guide NATO policy responses.

China Party Congress: Xi’s political blueprint The World Today rescobales.drupal 28 September 2022

In the second of her three-part series on the 20th National Congress of the Chinese Communist Party, Yu Jie outlines two key policy themes we can expect Xi to define: ‘common prosperity’ and ‘self-reliance’.

What can we expect from the Party Congress?

In mid-October five years ago, the 19th Party Congress opened with Xi Jinping delivering a political report lasting three-and-a-half hours. He will repeat the performance on October 16, the opening day of this year’s 20th Party congress.

Bland as its name may be, this political report is one of the Party Congress’s core items of business. It remains the most authoritative public account of the Chinese Communist Party’s path on all major policy fronts, containing a laundry list of policies undertaken by the outgoing Central Committee in the past five years, while putting forward guidance for future policy.

It represents the view of the current Politburo Standing Committee and that of the CCP. The 20th Congress report is a collegial effort and should not be considered Xi’s personal manifesto, nor should it be counted as another of his speeches to his comrades.

However, as general-secretary of the party for the past decade, it will most probably reflect many of the elements that Xi has influenced.

What are China’s political priorities?

No matter how complicated the geopolitics of the world becomes, Xi sticks to the conservative approach that has served his country well for past centuries: that China prioritizes the management of its own affairs.

Since the Cold War ended, two recurring themes have dominated the political report: the economy and security. For the 20th session, Xi will use the phrases ‘common prosperity’ as shorthand for the economy and ‘self-reliance’ for security.

Xi introduced the slogan ‘common prosperity’ at the start of his third term in August 2021. His aim was to close the income gap, address regional economic inequality and improve social welfare provision. Rebalancing social inequality was seen as essential to avoid the social disruption witnessed in other parts of the world.

Xi’s concept of ‘common prosperity’ was influenced by his childhood experiences living in exile in a remote village in Shanxi Province, in northwest China, during the Cultural Revolution. The ensuing upheaval was to prove a tragedy for his family and a disaster for the country.

His ambition is to define progress not in terms of producing double-digit growth but in dealing with the long-standing challenge of scarcities across different sections of society to meet ‘people’s ever-growing needs for a better life’. This direction was indicated at the 19th Party Congress by the term ‘shifting the principal contradiction’.

What state is the Chinese economy in?

Xi may have arrived at the right diagnosis but he has so far failed to find a cure that invokes ‘common prosperity’. After sweeping regulatory measures, the CCP has clamped down on its most successful private companies and spooked investors. While providing 80 per cent of China’s jobs, private enterprises are worried that the ‘common prosperity’ initiative may jeopardize their business.

Equally, Beijing’s zero-Covid policy has discouraged much-needed investment and failed to win the hearts and minds of Chinese youth, who have suffered most, both economically and socially.

The challenge facing Xi over the next five years will be to manage the financial risks in downsizing China’s property sector while coming out of a rigidly imposed Covid lockdown without reducing economic growth to such an extent that it damages the personal wealth of millions of people.

One hopes that Xi’s policies in future will be based on an innovative reading of the first-century phrase ‘seeking truth from facts’ adopted by Mao Zedong and last promoted as the political philosophy of Deng Xiaoping in the Seventies. A healthy market economy is not only essential for China’s development but as the only means of maintaining the party’s legitimacy, something vital for Xi.

Does China need more security?

China’s weakened export markets and less-friendly relations with the United States have encouraged it to become more self-reliant. Expect an emphasis on greater self-sufficiency in sectors of strategic importance to form a substantial part of this year’s political report.

In view of increased international hostility, Xi and his lieutenants have publicly recognized the need to take control of production and supply chains. These supply chains need to become ‘self-determined, self-controlled’ they have said, voicing frustration that the highest value-added elements of the Chinese tech sector remain reliant on overseas suppliers and vulnerable to geopolitical tensions.

Equally, on food and energy security, Russia’s invasion in Ukraine has exacerbated China’s already fragile food supplies as both countries are vital sources of food imports. Xi has already called for a ‘comprehensive thrift strategy’ to manage China’s food and energy needs.

Beijing is equally worried about the increase in oil and commodity prices which is driving up the cost of living. This may push parts of Chinese society out of ‘common prosperity’ and into ‘common poverty’, as it threatens to in some parts of Europe.

For the next five years, Xi needs to strike a balance between ‘common prosperity’ and ‘self-reliance’ to mitigate the storms ahead. He cannot afford to lockdown the world’s second largest economy indefinitely.

The hope is that the 20th Party congress will bring much-needed course corrections.

Read the two further articles in this series: the first provides a guide to why the Chinese Communist Party Congress matters; the third analyses the foreign policy issues likely to be discussed at the congress.  

China’s high-stakes incursion in the heights of Bhutan The World Today mhiggins.drupal 28 September 2022

Why is Beijing establishing settlements over the Bhutanese border? To undermine India’s strategic security, say John Pollock and Damien Symon.

A confrontation is fomenting on the roof of the world in a country that rarely warrants international attention.

In the tiny Kingdom of Bhutan, China is building villages in isolated, mountainous regions, upping the pressure on the capital Thimphu to yield contested areas to Beijing. In doing so, China risks a collision with South Asia’s largest state and Bhutan’s principal security guarantor, India.

Sitting on top of fragile geopolitical fault lines in the Himalayas, China’s Central Military Commission has seemingly authorized a series of incursions into the Bhutanese regions of Doklam, Jakarlung, and Pasamlung. Beijing has also announced fresh claims in the east towards Sakteng. Taken together, these amount to 12 per cent of Bhutan’s total territory according to Nathan Ruser, an analyst at the Australian Strategic Policy Institute.

India is wary of Beijing’s increased assertiveness in the Himalayas following a large-scale incursion by the Chinese People’s Liberation Army (PLA) into Ladakh two years ago when dozens of Indian and Chinese soldiers were killed in a stand-off.

The appearance of Chinese roads, villages and a host of other infrastructure projects within largely uninhabited areas of Bhutan close to Tibet, have, for sections of India’s national security establishment, confirmed their worst fears – Beijing is altering the status quo across the Himalayas in a bid to undermine India’s strategic security through territorial alterations.

As a country of only 780,000 people, Bhutan is greatly influenced by New Delhi when it comes to its foreign affairs. In exchange, India guarantees the defence of the kingdom and trains the Royal Bhutanese Army. The appearance of Chinese villages on its territory risks Bhutan becoming a victim of the wider regional tensions.

The trauma of China-Bhutan border relations

Bhutan is no stranger to the territorial aspirations of its northern neighbour. Thousands of refugees fled into the country after China annexed Tibet, damaging longstanding cultural and religious links between the Tibetan and Bhutanese people – a trauma still being felt today.

Now, Beijing is laying claim to three areas within Bhutan, including Doklam in the west. This plateau is close to the Siliguri Corridor which connects to the ‘Seven Sister’ states in northeast India. Indeed, such is India’s concern over any Chinese presence near Doklam that in 2017 local Indian commanders sent troops into Bhutan to prevent PLA engineers building a road near the Doka La pass, resulting in a 72-day stand-off on Bhutanese soil between India and China, an experience Thimphu is unwilling to repeat.

Once again, China is looking to force the border issue unilaterally, altering the status quo and building villages and outposts on Bhutanese soil. On the available evidence, it has been doing so for at least three years.

The presence of Chinese villages in uninhabited areas of Bhutan serves a strategic purpose. They appear to be intended to pressure Bhutan into accepting an earlier version of a border deal that concedes Doklam to the Chinese.

Bhutan’s increasing concern is that China now views the Sino-Bhutanese border dispute as a way of unravelling India’s strategic position by stealth. Here we see a growing pattern of behaviour across the Himalayas. China is testing the boundaries in isolated and contested areas of India to attain local advantages that ensure New Delhi’s gaze remains fixed on the Himalayas.

The costly choice facing Bhutan

Bhutan for its part has very deliberately opted to remain silent, despite clear violations of its border deal with Beijing. Thimphu has made no public comment on any of the Chinese incursions.

The choice now facing Bhutan is a costly one. To concede Doklam would devastate relations with India, its closest partner. But to ignore China’s ambitions would be to risk further violations of its sovereign territory.

Bhutan may yet agree in principle to a land swap but then delay its implementation in the hope China limits any further advances. Thus Bhutan, India and China stand at a crossroads, with an impending confrontation that has not yet arrived and one that through Thimphu’s delicate diplomacy, Bhutan hopes never does.

China’s incursions into Bhutan

1. Pangda

The most high-profile incursion is in the disputed areas in Doklam. Running adjacent to the previous Doka La stand-off site, a series of Chinese projects are visible, following the Amo Chu River that runs from the Chumbi Valley in Tibet into Bhutan.

The most well-known of these xiaokang – meaning peaceful and prosperous – border projects is Pangda, a village of 124 people that sits roughly two kilometres within Bhutan from the border. First spotted by open-source intelligence analysts in October-November 2020, Chinese state media says that 27 households were moved from the Shangdui village to Pangda in September of that year and that the village is located in Yadong County, Tibet. Pangda, however, lies on territory internationally recognized as belonging to Bhutan.

Since Pangda was first identified, two more villages and an additional excavation site have been noted through satellite photographs taken in March this year, steadily following the river further into Bhutanese territory. In recent reporting by journalist Vishnu Som, a connecting road is also visible that runs 9km into Bhutan.

Given the geopolitical sensitivities of the area vis-a-vis India, speculation points to Chinese attempts to increase pressure on the Jampheri ridge overlooking the 2017 stand-off site, which according to journalist Tenzing Lamsang, is currently occupied by a small Royal Bhutanese Army detachment. As ever in the Himalayas, small tactical alterations have strategic implications. Chinese control of the Jampheri ridge would command views towards Sikkim, increase the scope of China’s surveillance operations near the border and place India’s Eastern Theatre Command at a terrain disadvantage were it to intervene as it did at Doka La.

2. Dramana and Shakhatoe

Further north of Doklam, at Dramana and Shakhatoe, more villages have been identified, with recent photographs taken in November 2021 showing a collection of structures nestled between snow-capped mountains. Varying in size, the largest village identified by journalist Devjyot Ghoshal comprises more than 84 buildings with construction having been started in December 2020 and seemingly completed by December 2021.

Little is known about the nature of these villages or their occupants other than their size and location. However, the Chinese PLA has patrolled these areas aggressively, warning away Bhutanese herders and challenging counter patrols by the Royal Bhutanese Army.

A permanent PLA presence in the area would be a significant change to the status quo. Informed speculation suggests that these may house either civilian contractors brought in from Tibet to oversee construction projects in the area, Tibetan or Chinese citizens brought across the border, or they could even be barracks for the PLA to help facilitate increased patrols in these contested areas.

3. Menchuma Valley

Amid the sustained activity in the west of Bhutan, we are seeing similar levels of activity mirrored in the northern contested areas in Jakarlung, Pasumlung and the Menchuma Valley, a well-known entry point into Tibet for Bhutanese pilgrims.

In May 2021, a team of researchers led by Robert Barnett from the London School of Oriental and African Studies discovered three additional villages in these contested areas, alongside a series of infrastructure projects, sitting between 3km and 5km south of the Chinese border in Bhutan. Barnett identified what appears to be police and military posts near these villages, as well as a communications tower.

While the building efforts at Doklam are seen as having a geopolitical intent towards India, these villages and their locations are seemingly aimed to maximize China’s leverage over Bhutan. They are considered sacred in Tibetan Buddhist teachings as the birthplace of ancient Himalayan cultural heroes, with strong links to the Bhutanese royal family. Today they are the home to holy sites and temples, such as the Singye Dzong.

For China to intrude on this area, and in some cases even deny entry to parts of it, is suppression of Bhutanese history, culture and traditions. By design or by default, Beijing is managing Tibetan religion and culture beyond the borders of the Tibetan Administrative Region.

China's Party Congress: a dose of foreign policy realism is needed The World Today mhiggins.drupal 11 October 2022

In the final article of three on the 20th Chinese Communist Party Congress, which opens on 16 October, Yu Jie argues that Beijing must show more pragmatism about Taiwan and the West.

How important is foreign policy at the congress?  

The political reports delivered to the delegates of the week-long 20th Chinese Communist Party Congress, which happens every five years, follow a Marxist-Leninist formula. Economics and the means of production form the base, while politics and society fill in the superstructure. 

We can expect sections on the work of the Chinese Communist Party (CCP), ideological discussion, economics, domestic politics, foreign affairs, cultural reform and social developments. Usually, the report prioritizes big domestic political issues.  

The political report typically sheds some light on the status of, and relationships between, senior party members. It can also provide insights into the political fortunes of various interest groups. The report acts as a summary of the party’s achievements and its plans – expressed as the lowest common denominator of consensus between competing factions. 

This year’s congress should be no different, and the political reshuffle that takes place is likely to signal how Beijing intends to rise to the many challenges at home and abroad. 

Given China’s growing power and its fraught relationship with the West, this year’s congress is expected to feature serious discussion on weighty foreign affairs issues affecting Beijing, and which will have long-lasting implications for the rest of the world.  

Which geopolitical issues will be priorities?  

When it comes to foreign affairs, China’s priorities rarely change. The CCP seeks to create a stable external environment to foster its domestic economic development. This conservative maxim was advocated in the 1980s by China’s then-paramount leader, Deng Xiaoping, and it will continue to guide Beijing’s relationships after this congress. 

While we don’t know the exact details of this year’s political report, we can expect discussion on relations with the US-led West, a possible shift in the relationship between Beijing and Moscow, and elaboration on China’s ties with the Global South.  

Notably, it’s likely that a separate chapter of the political report will see Taiwan treated alongside the special administrative regions of Hong Kong and Macau, signalling the party’s commitment to its claims over the contested island.  

Despite a chorus of nationalistic rhetoric surrounding the issue of Taiwan, Beijing will be careful not to stumble into an international conflict which risks causing colossal damage on all fronts. The choice of language on the so-called ‘Taiwan question’ in this political report will serve as a bellwether as to how, if at all, the party might fundamentally shift its views regarding Taiwan and deviate from the principle of ‘peaceful reunification’, the policy stated at every congress since 1979. 

How have China’s relations with the West worsened?  

President Richard Nixon’s visit to China in 1972, the first by an American president to the Communist nation, kicked off five decades of relative stability. However, as China’s global influence has grown, so have Washington’s fears.  

The relationship has transitioned from the cooperation and relative stability that existed under President George W. Bush and President Hu Jintao in the early 2000s, into one characterized by volatility and competition under Xi Jinping, Joe Biden and Donald Trump. These tensions are almost certain to continue in Xi’s likely third term. 

Elements of China’s relationship with the West, such as cooperation over military and aviation technology, are becoming far more competitive. At the same time, trade and investment, once viewed as strong ties, have been rapidly deteriorating – as seen, for example, by several major publicly listed Chinese state-owned enterprises and large private companies withdrawing from the New York Stock Exchange.  

Will Beijing stand by the Kremlin despite Russia’s invasion of Ukraine?  

At the same time, Beijing’s close relationship with Moscow and its lack of opposition to Russia’s war in Ukraine have put China in an awkward position. The CCP has realized that cooperation with its long-standing ally and neighbour must come with substantial limits to avoid undermining its own political priorities and interests.  

Russia’s recklessness may spur Xi and the CCP’s senior leadership to minimize the economic, financial and political risks associated with the Kremlin’s pursuit of war against a country aligned with, and supported by, the West.  

Will China continue to support its regional partners?  

On its ties with the Global South, Beijing began to rethink its Belt and Road Initiative (BRI) as the US-led Indo-Pacific strategy gained geopolitical momentum. Regions of Southeast Asia and South Asia received a lot of funding and resources for BRI projects, as seen with Chinese support for the China-Pakistan Economic Corridor.  

Xi also recently introduced the Global Development and Global Security initiatives, which the political report should flesh out. 

Beijing is fully aware that it can only prosper if its regional partners prosper, and it can only achieve resource security and border stability if its southern and western neighbours in Myanmar and Afghanistan cease to fight over land and resources. 

Chinese foreign policy over the last five years has been a strange combination of high-octane rhetoric and patient pragmatism. To respond to this contradiction, the congress could be used as an opportunity to inject a dose of realism.  

Read the two further articles in this series: the first is a guide to why the Chinese Communist Party Congress matters; the second discusses the key domestic policy themes that Xi Jinping is expected to outline at this year’s congress.

Why a more inward-looking China is bad news for the world economy Expert comment LToremark 16 October 2022

The increased role of geopolitics and ideology in Beijing’s economic decision-making is bad news not just for China but for the world.

This quote by President Xi clearly outlines the inward tilt of Chinese economic policymaking that is now becoming increasingly obvious to the rest of the world. But it actually has deep roots. Ever since the 2008 global financial crisis, when the West’s reliability as a trading partner was thrown into question, self-reliance has become a more decisive organizing principle for Chinese officials.

As a result, the export-dependent growth model on which China built its economic rise in recent decades has been fraying. Exports as a share of China’s GDP peaked at 35 per cent in 2007 but had fallen to around 20 per cent by last year, a level not seen since before China’s accession to the WTO in 2001. This shows that net exports no longer make any meaningful contribution to Chinese GDP growth.

Although China’s inward tilt may have started out as a response to purely economic phenomena – the post-crisis global recession, belt-tightening in the West, the eurozone crisis, and a general softening of global trade growth in the post-crisis years – geopolitical considerations are now dominant in shaping this shift toward self-reliance.

The role of geopolitics in pushing China towards a more inward-looking development path became clear in China’s response to the aggressive tariffs and export controls introduced by the Trump administration in the US. Because of these new constraints on China’s access to international markets and technology, Beijing sought to limit its dependence on the rest of the world.   

The most obvious result of this was the introduction of the ‘dual circulation’ strategy in May 2020, which sets out a rebalancing of China’s economy away from a reliance on external demand as a stimulus to growth (‘international circulation’) towards increased self-dependence (‘domestic circulation’). 

Russia’s invasion of Ukraine has provided another geopolitical impetus to China’s pursuit of self-reliance. Since it is not far-fetched to think that China, like Russia, might one day also face coordinated sanctions, Chinese authorities must be thinking hard about how to respond to such a risk. 

The only credible strategy that China can adopt is to reduce its economic dependence on the West by creating, in effect, a kind of economic fortress, as its dependence on imported technology, food, and fossil fuels in particular, has created a substantial strategic vulnerability.

Over the next few years, Chinese policymakers will likely attempt to build up the country’s ability to supply its own semi-conductors, food, and green energy sources.

This new approach to economic policymaking isn’t just about China’s relationship with the rest of the world. Within China itself, a new emphasis on the role of the state is increasingly apparent – and seemingly rooted in ideology. 

The previous National Congress of the Chinese Communist Party (CCP), in October 2017, made a push for ‘stronger, better, and bigger’ state-owned enterprises (SOEs) and the past five years have indeed seen a measurable rise in the role that SOEs play in the Chinese economy. These firms now account for more fixed investment in the economy than private firms, for the first time since 2005.

Beijing briefing: China’s wish for 2023? An end to lockdown The World Today mhiggins.drupal 29 November 2022

Xi Jinping will try to beef up Global South relations in 2023, but weary Chinese and the business sector need pandemic restrictions to end, says Yu Jie.

This past year in Chinese politics was capped by a highly anticipated 20th Party Congress in Beijing in October which marked the beginning of General Secretary Xi Jinping’s unprecedented third term. Xi stacked the all-powerful Politburo with male loyalists and left the rest of the world to sift through the implications of his leadership reshuffle.

Meanwhile, Xi made headlines at the G20 summit in Indonesia, maintaining a largely positive tone with President Joe Biden and being caught on camera chiding Canada’s Justin Trudeau for leaks after their talks. So, what can we expect Xi to pull out of the hat in 2023, the Chinese Year of the Rabbit? 

In February and March, the conversations around Beijing dinner tables will focus on the composition of the new central government – the important seats within the Chinese State Council. This body must deliver Xi’s ‘security-oriented’ economic agenda as well as his much-promoted ‘Common Prosperity’ initiative.

Pundits will be paying particular attention to who is put in charge of economic planning, who the new foreign minister might be and who will govern the central bank. I will offer my reading of these tea leaves as the year unfolds.

In April and May, speculation may turn to whether China will finally open its borders to foreign visitors and those compatriots who want to be reunited with loved ones after enduring the pandemic lockdown. While some loosening of restrictions began in November 2022, China is still balancing its twin aims of containing the spread of Covid and re-engineering its economy along similar lines to Europe.

Beijing’s controversial ‘Zero-Covid’ strategy has intensified economic pressures, exacerbated rising levels of youth unemployment and tested the patience of China’s middle class, which has led to unprecedented civil disobedience. Those not employed by the state have been hit particularly hard. It is difficult to see how China’s economy can crank up again until Beijing reduces its internal restrictions and reconnects with the world.

A pivot to the Global South

June and July will be prime season for Beijing’s diplomacy with the Global South. Xi recently announced that China would host the third Belt and Road Forum in 2023 – a meeting of heads of states from predominantly developing countries to discuss his flagship foreign affairs initiative. As seen in the Political Report of the 20th Party Congress, Xi has abandoned the ‘new type of great power relations’ language he previously used to describe relations with the US-led western world. 

In its place, Xi is stressing that China should develop its ties with the Global South through his Global Development and Global Security initiatives which were announced in 2021 and 2022 respectively. These aim to reshape the global governance agenda in multilateral forums and project Beijing’s influence on to the developing world.

Sport will dominate throughout August and September. While Beijing’s spending spree on football promotion might have failed to see the national side qualify for the World Cup, its table tennis team has proved invincible and continues to cheer up the nation. I will offer my own verdict on why there is such a stark contrast between the success of the two men’s teams and explain the meaning of sports in modern Chinese society.

In October and November, young graduates will begin their careers while new university students start to arrive on campus. Chinese students are constantly subjected to strenuous testing. And like their western peers, they face the inevitable pressures of finding a job, repaying the mortgage and other everyday facts of life.

The burnout of China’s Generation Z 

The term ‘involution’ – neijuan – has been adopted by China’s Generation Z to describe their feelings of burnout at the ever-increasing expectations associated with high performance. Equally, they have strong opinions about their own government as well as western liberal democracies. China’s leaders of the future will come from their ranks so it will be worthwhile spending some time trying to understand what makes them tick.

Whatever the Year of the Rabbit holds for China, billions of its people will want to have their life return to normal without the fear of having the wrong colour – yellow or red – on their Covid health QR code. Only a green code shows a person is healthy and free to move around. The Covid threat has hovered over people for three years and as borders reopen, they may be holding their breath. 

A slowing economy dimming consumer confidence and a precarious international environment make it look even harder for President Xi to pursue the agenda outlined in October 2022. As the Year of the Rabbit dawns, China doesn’t need a Mad Hatter or a March Hare, instead it urgently needs a sound path to economic recovery and a plan to reopen its borders that works for everyone. 

China’s zero-COVID cannot continue, reopening is needed Expert comment NCapeling 1 December 2022

Unsure of how to loosen rules, local officials have doubled down on severe restrictions behind so much economic damage. Reopening will quell public anger.

When President Xi Jinping was seen unmasked at the G20 summit in Indonesia, he maintained a largely positive tone with President Joe Biden and other world leaders. This left an impression that China was on the verge of withdrawing its zero-COVID strategy.

A set of loosening policy measures introduced by Beijing seemed to further suggest that China was on track to reopen. As outlined in the 20th party congress, Xi wants to forge a pathway towards economic modernization and this means building economic resilience and a further increase in household incomes.

However, a series of displays of public defiance against the government’s zero-COVID policy has left the rest of the world perplexed. Some loosening of restrictions announced on 11 November by the central government, with the number of new cases still rising rapidly, left the provincial governments in confusion as to which direction to turn.

Absolute political loyalty

The persistent slogan of ‘zero-COVID’ was in stark contrast to the slackening of restrictions. Local officials decided to double down on stringent COVID measures as a way of displaying absolute political loyalty to the top, which inevitably caused daily agonies among large parts of the Chinese population.

This decision-making process sheds some light on the way the Chinese bureaucracy approaches crises at a time when the party leadership is tightening political control. Lower-level officials avoided making important decisions and instead decided to wait for instructions from the top. As the rules were unclear, they implemented policies according to past precedents, in this case zero-COVID, which had worked relatively well for China in 2020 and 2021.

For decades, local governments have been major political actors in China and have known what works best under local conditions. But with tighter regulation being exercised by lower-level bureaucrats and civil servants, there is less opportunity for the input of local knowledge, increasing the risk of ineffective policies being implemented.

Away from Beijing, those not employed by the state have been hit particularly hard by zero-COVID measures. The strategy has intensified economic pressures, exacerbated rising levels of youth unemployment, and tested the patience of the entire country.

Billions of Chinese people want to have their life return to normal without the fear of having the wrong colour – yellow or red – on their COVID health QR code or endless mandatory testing. Only a green code shows that a person is healthy and able to move around freely.

Economy is suffering

China is still balancing its twin aims of containing the spread of COVID and re-engineering its economy along similar lines to the rest of the world. It is difficult to see how China’s economy can crank up again until the country reduces its internal restrictions and reconnects with the world.

Russia and China in Antarctica: Implications for the Five Eyes 15 December 2022 — 11:00AM TO 12:00PM Anonymous (not verified) 2 December 2022 Online

This event explores Russia’s and China’s postions on the Antarctic and offers a critical assessment of their actions in the region.

Ever since the 1959 Antarctic Treaty System (ATS), signed at the height of Cold War, Antarctica has remained a demilitarized continent.

Today, even though the ATS is not in immediate danger of collapse, Antarctica and the Southern Ocean are no longer insulated from wider geopolitical tension, with China and Russia posing challenges to regional governance. 
 
This event also discusses key recommendations for the Five Eyes regarding Russian and Chinese current and future efforts at undermining the ATS and Antarctic governance. 

The discussion is informed by Mathieu Boulègue’s paper ‘Russia and China in Antarctica and the Southern Ocean: Implications for the Five Eyes’ published by the Sea Power Centre of the Royal Australian Navy.

Director's briefing: Key challenges for China’s economy in 2023 6 February 2023 — 8:00AM TO 9:15AM Anonymous (not verified) 18 January 2023 Chatham House

This event examines the structural challenges facing the Chinese economy in the wake of the 20th National Congress of the Chinese Communist Party.

This event examines the structural challenges facing the Chinese economy after the 20th National Congress of the Chinese Communist Party in October 2022 and how President Xi Jinping is responding to short and long-term domestic pressures.

The panel, including Professor Huang Yiping, discuss how quickly the Chinese economy could rebound after the Chinese government abandoned its ‘Zero COVID-19’ policy in December 2022 and to what extent the Chinese economy is pivoting toward Xi Jinping’s stated goal of ‘self-reliance’. The panel also discuss the broader implications for the global economy.
 
Key questions to be explored:

• Which sectors will China prioritize in pursuit of greater economic self-reliance?

• If China is turning inward, how will it drive technological innovation in the coming years?

• Is China’s economy robust enough to withstand geopolitical turbulence and other external shocks?

This event is held under the Chatham House Rule.

Beijing briefing: China bets on warmer EU relations The World Today mhiggins.drupal 30 January 2023

With the Sino-US Xi relationship cooling, Xi Jinping is sending a new diplomatic team to Europe – but his ties to Putin may mean slow progress, writes Yu Jie.

It has been a momentous year for Beijing. Twelve months after Russia’s invasion of Ukraine, its relations with the West have become more strained than ever. And after President Xi Jinping secured an unprecedented third term in office at the 20th Party Congress, the country has embarked on a chaotic exit from the Covid lockdown amid hopes the economy will rebound quickly.

Some are already asking if Beijing will set a course correction in its diplomatic priorities to spare itself some of the setbacks it incurred in 2022. But when it comes to foreign affairs, China’s priorities rarely change. 

The Chinese leadership seeks to create a stable external environment to allow its domestic economic development. This conservative maxim was adopted in the 1980s by Deng Xiaoping, and President Xi is likely to follow it as a time-honoured recipe for diplomatic reconciliation.

China’s awkward position

Beijing’s close relationship with Moscow and its failure to oppose Russia’s invasion of Ukraine have put China in an awkward position. Xi and his colleagues have begun to realize that cooperation with Russia comes with substantial limits to avoid undermining China’s own political priorities and longer-term economic interests.

Interestingly, pundits interpreted the omission of ‘pursuing new types of great power relations’ in the 20th Party Congress report as an acceptance by the party leadership that its fraught relationship with advanced developed nations is likely to remain, with little prospect of improvement in the short term.

Chinese diplomatic literature has always presented Russia as a great power, but the abandonment of such terms signals that Beijing is keen to put clear daylight between itself and Vladimir Putin, although international commentators may argue this is not enough and nothing has changed.

There has been little sign of China using its influence to help resolve the Ukraine conflict. Facing, as it feels it now does, a ‘collective West’ and not the Americans alone, Beijing has concluded there are few reasons not to move closer to Russia.

But a reset would appear necessary if China is to tackle its domestic economic woes. So far, Beijing’s main political tactic has been to reassure European countries that it is willing to use its ties with Russia to restrain Putin from entertaining the deployment of nuclear weapons. That was the message conveyed during the visit of Olaf Scholz, the German Chancellor, and it will be said again when both President Emmanuel Macron of France and Giorgia Meloni, Italy’s prime minister, each visit later this year.

Economically, China has traditionally relied on its relationships with the European Union and the United States to support innovation and growth. So, a perceived isolation from ‘a collective West’ is not an attractive option given Xi’s hopes of achieving a robust economic rebound after dropping the country’s ‘zero-covid’ policy. A precarious bilateral tie with the US has already reduced Beijing’s choice of partners and consumers. Worsening Sino-US relations and a tightening of access to overseas markets for Chinese companies have prompted Beijing not only to reconsider the country’s sources of economic growth but to reconfigure its approach to foreign affairs.

China is making a renewed push to strengthen ties with the Global South, which does not see the war in Ukraine as black and white as the West does. Such a move is only possible because five decades of engagement with the ‘collective West’ has allowed China to emerge from poverty and become a global economic powerhouse.

A new diplomatic team

In an attempt to reset the tone of China’s relations with the EU, its largest trading partner, Xi has formed a new diplomatic team headed by Qin Gang, as Minister of Foreign Affairs, who is returning from his post in Washington as ambassador to the US and who has a background in European affairs. Achieving warmer relations will be easier said than done, however, as China has maintained its ‘neutrality’ at Russia’s aggression since February 2022.

Review: The Cultural Revolution still haunts China The World Today mhiggins.drupal 30 January 2023

Tania Branigan’s searching ‘Red Memory’ reveals the costs to Chinese society of not addressing that upheaval’s lingering injustices, writes Nathan Law.

Red Memory: Living, Remembering and Forgetting China’s Cultural Revolution
Tania Branigan, Faber, £20

The Cultural Revolution, a decade-long socio-political upheaval initiated by Chairman Mao Zedong in 1966, caused as many as two million deaths and reshaped China. Under the influence of Mao’s personality cult, an entire nation was mobilized to purge the ‘reactionary elements’ in society and the Chinese Communist Party through public denunciation and demolition of traditional heritages.

Children turned on their parents; pupils murdered their teachers, and those who survived the summary public trials were often banished – as a young Xi Jinping himself was, living in a cave for seven years, after his father fell from favour.

Impossible moral choices

In her engaging and sensitive narrative account of the revolution’s upheaval and its consequences, Tania Branigan, the Guardian’s China correspondent between 2008 and 2015, speaks to some of those who survived those terrible years, considers their impossible moral choices and explores the far-reaching legacy of the revolution in present-day China.

Mao urged the party to cleanse itself of its ‘class enemies’: ‘capitalists’ such as landowners and shopkeepers, but also artists, farmers and university professors. Often their family members were tainted by association and persecuted. Branigan captures the awful sense of intimate betrayal and tragedy nowhere more than in the testimony of Zhang Hongbing, a lawyer turned zealous Red Guard.

Zhang denounced his mother, a hospital worker, as a ‘counter-revolutionary’ because her father owned land. She was eventually executed but not before her son struck her twice during her arrest to show his party loyalty. ‘What I did to my mother was worse even than to an animal,’ the remorseful Zhang tells Branigan.

Zhang points out that his actions were far from uncommon: ‘The whole country was doing it.’ This unreconciled sense of betrayal and fear still blights China: ‘Our society is ethically hollow. If we trace these problems to their roots, we are likely to find them in the Cultural Revolution,’ one survivor is quoted as writing.

Branigan encapsulates the difficulties around reconciliation and remembering in the story of Song Binbin. As a schoolgirl in 1966, she and two classmates were the first to pin up a poster attacking teachers for urging students to focus on their work instead of the revolution. Song’s classmates then beat the school vice principal Bian Zhongyun to death in the playground. The case was never properly investigated, and the death was dismissed as an accident.

The pain of remembering

In 2014, Song apologized publicly for the poster and expressed a sense of guilt for not intervening on Bian’s behalf. But Bian’s widower rejected the apology. Song did not speak to Branigan herself, instead allowing her friends to speak in her defence. ‘They had spoken of truth and reconciliation, but not once of justice. Every remark brought them towards closure, not accountability,’ Branigan writes.

The inability to come to terms with the past pervades the book, most of whose interviewees express feelings of resentment, fear and shame about the Cultural Revolution. I sensed the same emotions when, as a boy, I talked to a neighbour in Hong Kong who was then in his 70s. He escaped from China in the late 1960s due to political and economic strains. He simply nodded and fell silent when I asked him to elaborate.

As Branigan writes: ‘Most Cultural Revolution survivors had learnt to bend with the will of the time; not only to do as they were told but to imply that doing so was their own idea. It was better – safer – to stay silent or lie.’

This collective trauma is exacerbated by official unwillingness to address the past. The Cultural Revolution warrants no more than a few paragraphs in official textbooks with no mention of the suffering it unleashed. Documents of the period that might tarnish the CCP remain unavailable; any attempts to interrogate the Cultural Revolution are condemned as ‘historical nihilism’ by the party.

China is attempting a precarious balancing act Expert comment NCapeling 9 March 2023

In its efforts to maintain ties with both Russia and Europe, China is having to wade through conflicting interests and rapidly changing sentiments.

Precisely how far China will go in supporting Russia has been one of the most important questions of the war in Ukraine.

On 20 February, US secretary of state Antony Blinken warned China may soon provide arms (‘lethal support’) to Moscow. But then, on 24 February – the anniversary of Russia’s invasion – China released a position paper calling for a political settlement to end the conflict, tellingly omitting any mention of its ‘no-limits partnership’ with Russia.

China’s goal was to present itself as a neutral mediator. In fact, Beijing’s ties with Russia remain unchanged, even if this relationship has grown more exasperating for Chinese diplomats over the past year.

Their job is to continue striking a delicate balance, a task that is becoming increasingly difficult as Russian president Vladimir Putin doubles down on nuclear brinkmanship and reckless rhetoric.

Staying out of the Ukraine war

With Putin extolling the law of the jungle in its most brutal form, China must be careful not to involve itself too much in the conflict. After all, Russia is clearly losing, and China has high hopes of repairing ties with major European economies.

But Putin is of course keen to signal that China has his back. That is why he recently rolled out the red carpet for China’s top diplomat Wang Yi and then alluded to an (unconfirmed) upcoming visit by Chinese president Xi Jinping.

Such diplomatic developments allow him to present China’s ambivalent position as, in fact, an endorsement of the invasion. While the costs of aligning with Russia could easily outweigh the benefits for China, one must remember that China’s reasons for maintaining good relations with the Kremlin go beyond the war in Ukraine.

For starters, the two countries share a 2,672-mile (4,300-kilometer) border – roughly equivalent to the width of Europe – and the frontier’s exact location was not even finally settled until the beginning of this century, after generations of negotiations that included some 2,000 meetings.

Yet to this day, the spectre of the Sino-Soviet split in the 1950s and 1960s looms large on both sides and it is not likely to be exorcised anytime soon. With China focused on moves by the US and its allies in East Asia and the Indo-Pacific, it simply cannot afford sabre-rattling or unrest on its other borders.

Moreover, unlike the collective West, China’s foreign policy has always been shaped by interests rather than by values. Even with respect to Russia, the two countries’ bond is based mainly on shared resentment of US hegemony. By deepening their bilateral cooperation in recent years, they have been able to achieve a level of great-power status with which to counterbalance America.

But Putin’s misadventure in Ukraine has forced Xi and China’s newly minted Politburo to manage a new set of economic, financial, and political risks.

Russia’s war has left the West more firmly united than it has been in years. As China’s relations with the US have reached new lows, Chinese leaders want to avoid also alienating the European Union (EU), which is one of the country’s biggest trading partners.

This is why Xi and Chinese diplomats have been so careful not to accept the Kremlin’s talking points in full. Being isolated from the ‘collective West’ is not an attractive option for China, given its hopes of achieving a robust economic rebound after years of the zero-COVID policy.

Balancing Europe with the Global South

In seeking to keep diplomatic and trade channels open, China’s main tactic has been to reassure European countries that it will use its own ties with Russia to restrain Putin from deploying nuclear weapons.

At the same time, China is making a renewed push to strengthen its ties with the Global South where many countries do not see the war in Ukraine in the same stark moral terms as the West does.

The emphasis on energy and food security in China’s recent position paper may have struck a chord with developing countries that have been reeling from the war’s negative knock-on effects on their economies.

Beijing briefing: China aims for tech self-reliance The World Today mhiggins.drupal 28 March 2023

Xi Jinping’s new appointments are tasked with a technology led recovery, but they face a daunting task to restore growth, writes Yu Jie.

The three-day state visit to Moscow by President Xi Jinping in March may have eclipsed the National People’s Congress in Beijing a fortnight earlier, but as Xi seeks to establish a new global order with China at its centre, the political events in the Great Hall of People provide an important insight into the country’s longer-term economic plans.

While a new cohort of cabinet members was appointed to sit on the State Council for the next five years, much of the attention remains on China’s economic stimulus plan to enable a rapid post-Covid recovery, as well as proposals to restructure central government.

Mountainous task

Three aspects of this year’s Congress deserve deeper scrutiny: Li Qiang’s confirmation as premier to succeed Li Keqiang’s decade-long subdued tenure under Xi; the extent to which Xi’s new cabinet sheds light on China’s economic and scientific self-reliance; and the unveiling of a major restructuring of central government administration in sectors such as finance and science.

China’s new premier initially faces the mountainous task of restoring growth and market confidence. During a press conference much shorter than his predecessor would hold, Li Qiang praised China’s private business sector and repeated the words ‘China remains open to foreign business’ to address the growing anxieties among foreigners and Chinese private entrepreneurs.

Beside the daunting task of economic recovery, Li Qiang faces another big challenge. Unlike his predecessors, he has never worked as a vice premier and overseen ministries under the State Council. The test for him will be to pursue a sound economic recovery plan while coordinating numerous central government agencies. He will also need to regulate relations among provincial heads who have a tendency to argue endlessly over the distribution of public finances.

Even though Xi is secure in his third term, his involvement in shaping and implementing macro-economic policies is keenly felt. Li Qiang made explicit the State Council under his leadership will be the chief implementor of all policies approved by the president. This is a less equal working partnership with Xi than his predecessors on the State Council enjoyed in the past.

Beijing published its official plan to restructure its central government administration announcing planned cuts of 5 per cent of its civil service. The newly established Central Commission on Finance intends to deal with systemic financial risks and to coordinate the financial regulatory bodies, central bank and Ministry of Finance. This is seen to reflect the Chinese leadership’s growing concern with the poor performance of local government loans and debt as well of the volatility of the property market, all of which threaten huge uncertainty for the economy.

As well as reorganizing the financial sector, Xi’s intention to pursue an integrated national strategy combining economic and scientific self-reliance has led to significant appointments following the Congress. As a starter, a new Central Commission for Science under the party leadership has been established. This commission will focus on providing a renewed impetus to accelerate China’s drive to achieve ‘scientific reliance’ and to ease the choke points in the economy, such as the supply chain for semiconductors.

It remains unclear who will head this new commission or who will be on it, however, as scant detail has been made public. It is seen as a direct response to the tough measures adopted by the United States designed to dent China’s ambitions of technology supremacy.

Departure from the past

New appointees to the Politburo come with substantial backgrounds in science as well as a solid track record of running state-owned enterprises. This is a departure from the past.

Instead of inserting financial specialists, Xi appointed two scientists, Liu Guozhong and Zhang Guoqing, as the vice premiers overseeing science, education and industrial policies. This signals that Xi intends to prioritize science and innovation during his third term. The appointment of technocrats to the State Council is seen as a move to strengthen innovation and prepare the Chinese economy, political system and society for potential external shocks.

India-China relations: Is the Quad the answer? Interview NCapeling 28 March 2023

The threat of China’s military aggression is being felt across the world, but this is a phenomenon India has been contending with for decades.

India’s border with China became the site of tense conflict in 2020, which led to India reinvesting in the Quad. Arzan Tarapore discusses key issues from his International Affairs article, such as how India is responding to increased aggression at the border and how a reinvigorated Quad may hold answers to balancing China in the Indo-Pacific.

What have India-China relations been like in the past?

Relations between India and China have varied over the decades. In the years following World War Two there was some hope they would find common cause in their international outlooks but that was quite quickly extinguished with their border war of 1962.

Since then, the two countries have oscillated between detente and tension. It took decades for them to normalize their relations and slowly build trust through several confidence-building agreements.

More recently it seemed the two countries were both willing to set aside their border dispute in order to profit from their burgeoning economic relationship – as, for both, there is no question development and economic growth is the primary national objective.

The question has been the extent to which their unresolved sovereignty and security issues undermine those goals as, at the same time, they both began paying more attention to the security of their territorial claims.

China in particular matched its explosive economic growth with startling military modernization and assertiveness. Its long-standing military doctrine and terrain advantages means it relies heavily on quality military infrastructure on the Tibetan plateau and it has accelerated the pace of those infrastructure upgrades and expansion.

In the 2010s, India belatedly began to improve its own transport infrastructure near the border, which threatened to reduce China’s military advantages. The earlier quiet on the border began to crack and China began launching border incursions with increasing frequency and scale.

This was a dynamic, iterative process, with incursions prompting India to accelerate its infrastructure development, which in turn probably prompted more incursions by China.

What happened around 2020 to change their relationship?

The cycle of competitive security policies on the border reached a tipping point in 2020 with Chinese incursions at multiple points simultaneously in Ladakh, apparently designed to establish a new status quo on the Line of Actual Control (LAC) separating Indian and Chinese-controlled territory.

The Indian political leadership played down the incursions but both Indian and Chinese militaries rushed to reinforce their positions near the border. They held multiple rounds of military talks which made halting progress.

On 15 June 2020, a skirmish resulted in the loss of 20 Indian troops, and an unknown number of Chinese troops. In the weeks that followed, both sides further reinforced their positions in a scramble to gain positional advantage.

How has India responded to China’s increasing military might?

The Indian government’s response to the Chinese landgrab was to threaten the entire bilateral relationship. In a reversal of decades of policy, it argued China had demolished the painstakingly constructed confidence-building measures on the border, and so the relationship could not continue as normal until the border crisis was resolved.

It imposed new restrictions on Chinese investment in India – even as overall trade continued to increase – and adopted a more assertive diplomatic posture.

Strategically, the 2020 border crisis had two major effects. First, it reinforced the Indian proclivity to see its northern borders as the primary threat to Indian national security.

India has heavily reinforced the border, reassigning some major formations and making numerous new investments in military capability to manage the threat. The significance of this however is that, in the context of budget scarcity, these military improvements come at the cost of potential increases in India’s capability in the Indian Ocean region – ultimately a more consequential zone of competition in the Indo-Pacific.

The Indian government may yet change course and reallocate resources for power projection but, at this stage, I see no evidence of that.

The second major strategic effect of the crisis was to unleash Indian cooperation with its partners, especially the US and the reinvigorated Quad grouping of Australia, India, Japan and the US.

India has generally avoided formal international alliances, and the Quad was in hiatus for years – why has India invested in it now?

India had always been mindful not to embrace external partners too closely so as to maintain its freedom of action and to not provoke a Chinese reaction. But since the Ladakh crisis, New Delhi has a newfound willingness to work more closely with the US, Japan, and Australia – because it calculates correctly that these partnerships enhance its freedom to act, and that China has already adopted the aggressive posture India feared.

It is important to note however that the border crisis was not the only driver of India’s strategic adjustment. The crisis coincided with the COVID-19 pandemic which highlighted to India the ineffectiveness of existing international institutional arrangements.

For New Delhi, then, the twin crises of Ladakh and the pandemic stressed the need for new international arrangements, and the Quad offered the best combination of agility and capability to meet the most pressing challenges of the Indo-Pacific region.

What do the Quad partners hope to achieve in their renewed partnership?

Beginning in 2021, the Quad assumed far greater significance. The first national leader summits happened – which have since continued at regular intervals – and its members have all agreed to a continually expanding agenda of work.

It seeks to provide international public goods, and everything from climate action to telecommunications regulations. Critically, it has limited its security role to some niche and relatively unprovocative areas, such as humanitarian assistance and maritime domain awareness – issues which benefit the Indo-Pacific as a whole and do not intensify security competition. It has certainly eschewed military cooperation.

Interestingly, the four Quad countries have also separately accelerated their military cooperation, bilaterally, trilaterally, and even quadrilaterally. But that cooperation lies outside the formal mechanisms of the Quad.

What impact will these Quad actions have on Chinese aggression and the Indo-Pacific region?

This Quad approach, which I call ‘zone balancing’ in my article, is specifically designed to build the capacity and resilience of regional states, and to not inflame dyadic security competition.

The relatively uncompetitive character of these activities helps to deflate Chinese claims that the Quad is an antagonistic new bloc, and to ameliorate southeast Asian states’ concerns over the potential intensification of strategic competition.

But the Quad’s agenda is not fixed and not bounded. It has expanded year on year and may continue to extend into new areas. This gives it a degree of flexibility and coercive leverage as Beijing cannot be confident about the Quad’s future direction.

This slate of activities has a lot of utility in building the Quad’s regional legitimacy and habits of cooperation among its members. But it conspicuously does not address the region’s most pressing security challenges.

It is not, in its current form, equipped to manage the challenge of territorial disputes or aggression. So the Quad will not address India’s unresolved border dispute with China, potential crises over Taiwan, or the South China Sea.

I would argue, however, that the four members of the Quad have unparalleled advantages of capacity and geography. With further military cooperation, even outside the formal structures of the Quad, they have the potential to deter Chinese aggression, but that remains subject to their political preferences.

Will other countries in different parts of the world adopt similar balancing strategies?

Zone balancing could be an attractive strategy for other countries which want to either avoid the costs of hard military balancing, or to not provoke their rivals.

It has been used in the past – such as the Marshall Plan during the early Cold War – and I would not be surprised if other countries competing with China, or even China itself, use it.

The Critical Transition: China’s Priorities for 2021 Research paper sysadmin 31 January 2017

This paper sets out the core issues for the Xi leadership, and focuses on what these might mean for the UK, particularly in the post-Brexit world and with the election of Donald Trump as US president.

In 2017 Xi Jinping will complete his first full five-year term as China’s leader. Towards the end of the year, in autumn, the country is due to hold its 19th Party Congress. This major meeting usually marks the moment when the Communist Party of China (CPC) assesses its performance over the previous five years, sets out political goals for the coming five-year period and makes new appointments.

Xi Jinping’s leadership has been characterized by a number of significant domestic and international policy strategies. China’s economic growth rate is slowing, and the country’s economy is undergoing major restructuring. Export-led manufacturing growth and capital investment in fixed assets are now being replaced by consumer-led and service-dominated expansion. Meanwhile, the role of the CPC has been rearticulated with a major anti-corruption struggle since 2013 that has sought to clear away a raft of different networks and senior officials and connected business people. Xi has proved a more communicative, more populist and more nationalistic leader than his predecessors. He is also crafting an image of himself as a more visionary leader.

Internationally, China is striving for a relevance and role that it has never had before. Its reach is felt in international organizations, regionally, and through its economic and resource needs. It has a role in global affairs that embraces places once considered on its periphery, such as Latin America, the Arctic and Antarctic Circles, and the Middle East. Its impact in Asia is particularly striking, marked by activity in the South China Sea, and a new kind of relationship with Russia, India and the US. The major Belt and Road Initiative, in particular, has started to outline a new expansiveness in China’s relations with the outside world, despite the largely abstract nature of its overall shape and form at the moment.

The themes and viewpoints in this collection of essays are particularly geared towards those with an interest in policy engagement with China. While setting out the core issues for the Xi leadership, it also focuses on what these might mean for the UK, particularly in the post-Brexit world and with the election of Donald Trump as US president. As the UK seeks a new kind of relationship with a rapidly changing China, this group of expert opinions maps out the key markers in the run up to 2021, when China is due to celebrate achieving the first of its centennial goals: the delivery of middle-income status and a moderately prosperous society.

Brexit: Implications for EU–China Relations Research paper sysadmin 10 May 2017

For Beijing, the EU–China relationship will take priority over UK–China ties – with China’s relative focus on Germany becoming even more significant.

Summary

• The extent of current UK relations with China means that Brexit will notably reduce the scale and diversity of overall EU–China economic and commercial interactions. But the impact will vary across different areas.
• In policy terms, liberal voices on economic policy towards China will be somewhat weaker among the post-Brexit EU27. Brexit will not be the most important factor determining the future level of strategic coherence in EU policy towards China.
• The impact on post-Brexit EU27 trade with China will be felt both in the volume of trade and its composition. Following Brexit the EU will no longer be China’s largest trading partner.
• There will be some relative shift in Chinese investment in Europe away from the UK, though over time the impact of Europe-wide policy approaches to Chinese investment will have more impact than Brexit per se.
• EU–China educational exchanges will be weakened after Brexit, but inbound Chinese tourism will be less affected by Brexit.
• By 2025, the EU will have compensated for Brexit’s impact in some areas, but much depends on the EU’s own trajectory over the next decade.
• For Beijing, the EU–China relationship will take priority over UK–China ties. Within the EU, China’s relative focus on Germany will be even more significant.

Arguments Over Innovation Capacity Miss How Much the US and China Are Intertwined Expert comment sysadmin 30 May 2018

Most discussions of current US–China trade tensions fundamentally misrepresent the globalized nature of innovation.

Among the many issues at play in the ongoing economic and trade tensions between the US and China are questions of technological capability and innovation.

Two of the main complaints in the US Section 301 report were that American companies have been forced to transfer technology to China and been the subject of cyber espionage. The presentation of the issues in this report has been disputed, but behind it lies concern in the US that Chinese innovative and technological capability is catching up with that in the US, thanks partly to the support of state policies set out in the Made in China 2025 initiative.

One important feature of the package of measures announced by the US last month is that it was designed to contain China’s technological development as much as to reduce the trade deficit, even though the latter has been the focus of President Donald Trump’s rhetoric.

(Some have cast doubt on this picture of Chinese innovation, suggesting that China is more of a ‘fat tech dragon’ whose massive inputs into research and development do not translate into real innovative capacity.)

The problem with the debate comparing Chinese and American technological capability is that it misunderstands or misrepresents the globalized nature of innovation in today’s world.

Contrary to the economic nationalist rhetoric emanating mainly from Washington, and to a lesser extent from Beijing, the US and China are not two separate economies competing for economic hegemony. As part of the globalization of manufacturing and production over the last 40 years and the more recent globalization of consumption, the shape and structure of innovation has also changed.

As we argue in a new paper, the key to understanding this is to think of innovation as being carried out through global or transnational networks linking economic actors, not within separated economies. What the recent phase of globalization has demonstrated is that innovation is achieved most effectively and efficiently when those engaged in innovation are connected not just within national borders but across them.

China has become integrated into these global innovation networks in ways which reflect its relative strengths and weaknesses in research and development. China’s extensive manufacturing ecosystem has enabled its companies to perform well in production-related and efficiency-driven innovation. Moreover the rapid growth in its large and dynamic consumer market provides fertile ground for consumer-related innovation by Chinese and foreign-invested enterprises alike. The rapidly increasing talent pool in China also provides additional human capital for innovation and technology.

Apart from the increased emphasis by Chinese enterprises on innovation, multinationals have also been stepping up their research and development (R&D) efforts in China. These now consitute a significant part of China’s R&D landscape, and are an increasingly important part of the global innovation by multinationals.

Things are of course changing. China’s overall innovation capacity is improving, and there are concerns in both in the US and Europe that Chinese policy is moving backwards towards the promotion of ‘indigenous innovation’ – or self-reliant innovation – and away from openness. In other words, we may be seeing a more ‘techno-nationalist’ China as well as a protectionist US.

China has also been criticized for inadequate protection of intellectual property rights, though the establishment of special courts for such disputes marks a commitment to improve – and the rights of Chinese companies increasingly need protection too.

As the benefits of globalization increasingly come under question, and with some degree of nationalist political pressure in both the West and China, it is not going to be possible – or politically desirable – to do away with national borders when it comes to innovation. But at the same time, the extent to which businesses and consumers have globalized means that fully ‘indigenous’ innovation is not possible, even if it were politically desirable.

EU-China innovation relations, as well as those between Washington and Beijing, therefore need careful management. But both Americans and Europeans should have more confidence in their innovation capability, given the relative strengths and weaknesses of Chinese innovation.

Americans and Europeans should acknowledge and promote the opportunities that come from globally networked innovation processes. Taking advantage of the comparative advantage of all the players in these networks means working with China as an innovation partner.

China: End of the Reform Era 20 July 2018 — 12:30PM TO 1:30PM Anonymous (not verified) 30 May 2018 Chatham House, London

The speaker will argue that China’s reform era is ending, and that core factors which characterized it - including political stability, ideological openness and rapid economic growth - are unravelling.

Since the 1990s, Beijing’s leaders have firmly rejected any fundamental reform of their authoritarian one-party political system, even as a decades-long boom has reshaped China’s economy and society. On the surface, their efforts have been a success, but Carl Minzner says a closer look at China’s reform era reveals a different truth.

He outlines how over the past three decades, a frozen political system has fuelled both the rise of entrenched interests within the Communist Party and the systematic underdevelopment of institutions of governance among state and society at large. Economic gaps have widened, social unrest has worsened and ideological polarization has deepened.

The speaker will discuss how China’s leaders are attempting to address these looming challenges, including institutional reforms and a shift back towards single-man rule. The speaker will also consider the question of regime stability given that China’s era of ‘reform and opening up’ is ending and there is now a renewed uncertainty over Beijing’s future.

THIS EVENT IS NOW FULL AND REGISTRATION HAS CLOSED.

China Needs to Make the Belt and Road Initiative More Transparent and Predictable Expert comment sysadmin 29 April 2019

The global infrastructure project must move beyond mish-mash of opaque bilateral deals

As China welcomes dozens of world leaders to Beijing for its second Belt and Road forum, it has one simple aim: relaunching President Xi Jinping’s controversial global infrastructure drive.

Since it began five years ago, the Belt and Road Initiative (BRI) has sunk hundreds of billions into port, railway and power projects stretching from south-east Asia to central Europe. But its path has been bumpy, drawing sharp criticism over the ruinous debts that some countries have racked up amid Chinese largesse.

Xi will stress sustainable financing and transparency this week, amid the usual talk of ‘win win’ cooperation. Yet BRI’s problems are structural, not presentational. For any pledges to be meaningful, China must move beyond its present mish-mash of opaque, bilateral deals.

After bad headlines last year, BRI has in fact enjoyed a good run in recent weeks. Malaysia announced it would resume a previously cancelled high-speed rail project, while Italy’s decision to join up last month marked a further European incursion. Indeed, if attendance is any guide to success, BRI looks in fine fettle. The first forum in 2017 attracted 29 world leaders. China says 37 will turn up this week. Phillip Hammond, UK chancellor, arrives hunting deals too, just a day after news that Chinese technology group Huawei will be allowed to help build 5G networks in Britain.

Even so, three interlinked problems remain at the heart of President Xi’s pet project, all of which must be addressed if BRI is to move beyond the pitfalls that have damaged its reputation.

The first and most obvious is debt. Critics allege that China ‘traps’ its BRI partners financially, often pointing to a debt-for-equity deal that handed China control of a port in Sri Lanka. These claims are exaggerated — few other projects have ended up this way. Yet poorer nations from Laos to Tajikistan are still signing up to vastly expensive Chinese schemes that offer poor value for money while straining their public finances.

The second problem is transparency. Despite its grand scale there is still no reliable list of BRI projects, no disclosure of the lending standards China follows, nor even the amount China has invested. Beijing claims more than $1 trillion; independent estimates suggest perhaps a few hundred billion. Either way, it will be hard for China to convince doubters on debts until it is open about the criteria it uses in deciding who to lend to and why.

BRI’s third and most important challenge is its muddled organization. Despite BRI’s image as a centrally run mega-project, China has allowed many deals to be struck locally, via a mix of state-backed companies, public sector banks and freewheeling regional governments. And it is here that the problems began.

Infrastructure deals are notoriously complex, especially for transnational projects like high-speed rail. Renegotiations are common, even for experienced bodies like the World Bank. Yet BRI has repeatedly seen terms negotiated behind closed doors, in countries such as Malaysia and Pakistan, come unstuck in the face of public outcry.

Rather than seeking to trap others with debt, China’s central government more often has to step in to fix dubious projects agreed by underlings lower down the chain.

These negotiations go one of two ways. Either China’s partners complain and win terms, as was true in Malaysia and in Myanmar over a multibillion-dollar deep-sea port. Or, as in the case of Sri Lanka, the renegotiations go in China’s favour, but at the cost of accusations of debt trickery. In both cases China looks bad.

Speaking last year, Xi responded to criticism of BRI by describing it as ‘an open platform for cooperation’. Yet, so far, he has proved resistant to the step that would deliver on that vision — namely turning BRI into an institution with open standards and international partners.

The reasons for his reluctance are obvious. Ending BRI’s reliance on loose bilateral deals would limit Beijing’s room for geopolitical manoeuvre. Yet what might be lost in political flexibility could easily be gained in economic credibility, while avoiding some of the painful renegotiations that have dogged many BRI projects.

At a time when China’s economy is slowing and its current account surplus is shrinking, formalising and institutionalising, BRI could also help avoid wasting scarce public resources on white elephant projects. China even has an easy template in the form of the Asian Infrastructure Investment Bank, the Beijing-based institution that has won plaudits for its project quality and openness since it started in 2016.

Whichever model is chosen, a dose of Chinese-style central planning is called for, along with more openness. Without it, the oddly chaotic and decentralised model pioneered in BRI’s first five years is unlikely to help the project thrive over the next five.

This article was originally published in the Financial Times.

China's Evolving Economic Relations with North Africa: Before and After COVID-19 10 September 2020 — 12:00PM TO 1:30PM Anonymous (not verified) 20 August 2020 Online

China’s economic presence across North Africa has grown in recent years. The global power has forged close economic relationships with Egypt and Algeria, while also continuing to develop ties with Morocco and Tunisia.

Beijing, which views the region as a geostrategic intersection between Mediterranean, Middle East, and Africa, has primarily focused its efforts on developing bilateral relations, while also working within the Forum on China–Africa Cooperation (FOCAC) and the China–Arab States Cooperation Forum (CASCF).

All countries of the region have agreed to participate in China’s Belt and Road initiative (BRI), which has raised concerns among Western powers. As North African countries grapple with fiscal constraints as part of the fallout from COVID-19 (and the oil price drop for hydrocarbon exporters such as Algeria), it is yet to be seen whether China’s ambitions and relations within the region will continue to develop at the same pace going forward.

In this webinar, organized by Chatham House’s MENA and Asia-Pacific Programmes, experts will discuss the evolving economic relationship between China and North African states, and explore the impact of China’s pandemic diplomacy across the region.

How asymmetric are economic relations between China and North African states? Which sectors are most important, and what are the prospects for China to develop the region’s digital and healthcare infrastructure? Will China’s increasing economic interests necessitate an increasing political and security engagement? Should North African states be wary of Chinese loans? What is the public opinion of China’s economic presence in North Africa? Have Chinese ‘soft power’ efforts helped to bolster economic (and political) ties? What will be the likely fallout of COVID-19 on BRI and infrastructure projects in the region?

You can express your interest in attending by following this link. You will receive a Zoom confirmation email should your registration be successful. Alternatively, you can watch the event live on the MENA Programme Facebook page.