Archive for ‘Beijing’

01/06/2020

‘Lemon’ or not, Trump is stuck with Phase 1 China trade deal

WASHINGTON (Reuters) – U.S. President Donald Trump has little choice but to stick with his Phase 1 China trade deal despite his anger at Beijing over the coronavirus pandemic, new Hong Kong security rules, and dwindling hopes China can meet U.S. goods purchase targets, people familiar with his administration’s deliberations say.

The U.S.-China trade negotiations took more than two years, heaped tariffs on $370 billion of Chinese products, whipsawed financial markets and dimmed global growth prospects well before the coronavirus outbreak crushed them.

In recent weeks, suggestions that Trump may cancel the deal have emanated from the White House almost daily, and businesses, investors, and China trade watchers are hanging on to every word and tweet.

But on Friday, when Trump said the United States would start dismantling trade and travel privileges for Hong Kong, he did not mention the deal. Stock markets heaved a sigh of relief, with the S&P 500 .SPX reversing losses.

Talking tough on China and criticizing the Obama administration’s more measured approach is a key part of Trump’s re-election strategy. Sticking with the pact may mean accepting that China is likely to fall short of purchase commitments for U.S. agricultural goods, manufactured products, energy and services – goals that many said were unrealistic here even before the pandemic.

Canceling the deal, though, would reignite the nearly two-year U.S.-China trade war at a time U.S. unemployment is at its worst since the 1930s Great Depression.

The next U.S. step would likely be reviving previously planned but canceled tariffs on some $165 billion worth of Chinese consumer goods, including Apple (AAPL.O) cellphones and computers, toys and clothing – all ultimately paid by U.S. companies and passed on to consumers. Beijing would retaliate with tariffs on U.S. goods, fueling more market turmoil and delaying recovery.

“He’s stuck with a lemon. He gets an empty agreement if he sticks with it, and he gets more actions that create an economic drag and more volatility if he abandons it,” said one person briefed on the administration’s trade deliberations.

U.S. goods exports here to China in the first quarter were down $4 billion from the trade war-damaged levels a year earlier, according to U.S. Census Bureau data.

The Peterson Institute of International Economics estimates here that during the first quarter, China made only about 40% of the purchases it needed to stay on target for a first-year increase of $77 billion over 2017 levels, implying an extremely steep climb in the second half.

Leaving the deal now would not buy a lasting political bounce for Trump in manufacturing-heavy swing states with five months to go before the presidential election, analysts say.

COMPLEX RELATIONSHIP

Trump blames China for failing to contain the coronavirus and has repeatedly said the deal, including its pledges to boost U.S. exports to China by $200 billion over two years, no longer means as much to him with U.S. coronavirus deaths now over 100,000 and job losses piling up.

Trump said on Friday that China was “absolutely smothering Hong Kong’s freedom,” but refrained from harsh sanctions that could put the trade deal in jeopardy, taking milder steps to revoke the territory’s separate travel and customs benefits from China.

Claire Reade, a former U.S. trade negotiator, said Trump’s “peripheral steps” would not deter Beijing from proceeding with the security law, as it regards Hong Kong as a core national security issue.

“Probably the most significant thing from the trade perspective is that the Phase 1 trade deal is – for now anyway – unaffected,” said Reade, senior counsel with Arnold and Porter law firm in Washington.

White House Economic Adviser Larry Kudlow criticized Beijing last week, but on trade told CNBC: “It’s a complex relationship. The China Phase 1 trade deal does continue to go on for the moment and we may be making progress there.”

U.S. Trade Representative Robert Lighthizer has recently cited here “continuing progress” in the deal, after China welcomed U.S. blueberries, barley, beef and dairy products. He has touted the deal’s dispute settlement mechanism, which provides for regular consultations on compliance with Beijing’s commitments on intellectual property protections, financial services, agriculture standards and purchases.

U.S.-China flashpoints on Hong Kong, Taiwan and other issues did not derail negotiations that resulted in new concessions from China, said Jamieson Greer, who served as Lighthizer’s chief of staff until April.

“Some of these security and human rights challenges have certainly complicated the atmosphere, but the trade agreement can still provide a set of rules governing important aspects of the trade relationship,” said Greer, now an international trade partner at the King and Spalding law firm.

Another person familiar with USTR thinking said the agency “needs to make Phase 1 look good. They want to show that progress is being made. The president looks at the China relationship much more broadly.”

Source: Reuters

31/05/2020

Spotlight: Washington faces blast at home, abroad for “terminating” ties with WHO

BEIJING, May 31 (Xinhua) — The U.S. government has been slammed at home and abroad after announcing on Friday “terminating” its relationship with the World Health Organization (WHO).

U.S. health experts and lawmakers have expressed concern over the decision announced by President Donald Trump amid the COVID-19 outbreak.

Patrice Harris, president of the American Medical Association, described Trump’s move as a “senseless” action with “significant, harmful repercussions.”

“COVID-19 affects us all and does not respect borders; defeating it requires the entire world working together,” Harris was quoted by CNN as saying, urging Trump to reverse the course.

Lawrence Gostin, a professor of global health law and director of the O’Neill Institute for National and Global Health Law at Georgetown University, described the move as “foolish and arrogant” in his Twitter account.

“Trump’s action is an enormous disruption and distraction during an unprecedented health crisis,” said Gostin, also the director of the WHO collaborating center on national and global health law. “The President has made us less safe.”

Democratic Senator Joe Manchin of West Virginia said that “the United States cannot eliminate this virus on its own and to withdraw from the World Health Organization — the world’s leading public health body — is nothing short of reckless,” according to a CNN report.

Even within the Republican party, some Republicans also expressed their disagreement. Senate Health Committee Chairman Lamar Alexander reportedly said he disagreed with Trump’s decision, because, without U.S. funding, clinical trials to develop a COVID-19 vaccine might be hampered.

In addition, the European Union (EU) has urged the United States to reconsider its termination of ties with the WHO, warning that Trump’s move would erode global efforts to curb the spread of the virus.

“The WHO needs to continue being able to lead the international response to pandemics, current and future. For this, the participation and support of all is required and very much needed. In the face of this global threat, now is the time for enhanced cooperation and common solutions. Actions that weaken international results must be avoided,” Ursula von der Leyen, president of the European Commission, and Josep Borrell, the EU High Representative for Foreign Affairs and Security Policy, said in the statement on Saturday.

“In this context, we urge the U.S. to reconsider its announced decision,” the statement said.

German Health Minister Jens Spahn tweeted that Trump’s move was “a disappointing backlash for International Health.”

“The EU must take a leading role and engage more financially,” Spahn said, noting that this would be one of Germany’s priorities when it becomes the bloc’s rotating presidency on July 1.

British Prime Minister Boris Johnson’s spokesperson said earlier that Britain “has no plans to stop funding the WHO, which has an important role to play in leading the global health response.”

“Coronavirus is a global challenge and it is essential that countries work together to tackle this shared threat,” the spokesperson was quoted by The Guardian as saying.

Irish Minister for Health Simon Harris on Friday described Trump’s move as an “awful decision.”

“A global pandemic requires the world working together … We should unite in our fight against it (COVID-19) & not fight each other,” Harris tweeted.

Russian Foreign Ministry spokesperson Maria Zakharova told TASS news agency that Washington “dealt a blow” to the international framework for cooperation in healthcare at the moment when the world needed to join forces.

Source: Xinhua

31/05/2020

Is Beijing preparing to decouple from the US?

  • China’s leadership has made it clear to its people that the world will become more dangerous and they must be prepared for hard times
  • Beijing’s relatively small stimulus response to Covid-19 suggests it wants to save its economic policy ammunition for a bigger battle China opted not to set a GDP target for 2020. Photo: Xinhua
China opted not to set a GDP target for 2020. Photo: Xinhua
Beijing’s decision not to set an annual GDP target for 2020 – for the first time since 2002 – is a sign it is putting stability ahead of growth as part of its preparations for an escalating conflict with the United States.
Economic development has always been the central theme for Beijing since it established diplomatic relations with the US in 1979. But this year it has given priority to job creation and tackling poverty. The coronavirus outbreak might appear to have been the reason for the shift, but the underlying factor is the tension with the US.
Covid-19 offered a preview of what a decoupling of China and US might look like: aircraft grounded, cargo flows disrupted, value chains broken, goodwill and cooperation lost, blame games started.
Both countries have suffered heavy human and economic losses from the coronavirus, yet that did not inspire them to work together. Instead, hostility and rivalry has thrived, and neither wants to blink first.

The Chinese leadership has made it clear to its people that the world will become more dangerous and they must be prepared for hard times. As such, the government is saving its economic policy ammunition.

While the stimulus plans introduced in the US, Germany, Japan and France exceed 10 per cent of their national GDP and interest rates have been cut to the bone, Beijing stopped at just 1 trillion yuan (US$140 billion) worth of special treasury bonds and 1.6 trillion yuan of additional local government bonds. In total, about 2.6 per cent of GDP.

Interest rates in China – 2.7 per cent on 10-year bonds – are some of the highest among major economies.

China’s 6.6 per cent defence spending boost lowest in three decades

23 May 2020

China’s budget fiscal deficit has increased to 3.6 per cent of GDP for 2020, but the larger deficit is mainly from tax and fee cuts instead of increased fiscal expenses, except for an increased military spending.

Beijing is calling on provincial and local authorities to tighten their belts, which is unusual for a government that has huge assets and can increase spending at any time through quantitative easing.

So why is the government, which is known for intervening in the economy, being so restrained?

It is bracing itself for a perceived period of turbulence and hardship as its relationship with the US turns sour. It is putting jobs and social stability on top of its agenda, instead of growth.

Beijing is refraining from excessive spending, eliminating sources of potential instability, making appeals to the most vulnerable social groups, and saving its power for a bigger test.

Against that backdrop, the National People’s Congress passed the national security legislation on Hong Kong. Beijing knew the bill would anger the US, but did it anyway.

Hong Kong is known as China’s gateway to the international capital market and the largest offshore yuan market, but Beijing is ready to trade losses on the financial and economic front for potential gain on a fortified national security fence.

All this points to the suggestion that Beijing is preparing for the possibility of decoupling from the US, even if it doesn’t necessarily want to.

The threat of a new Cold War is clouding the world. The theme of life for one or two generations of people on both sides of the Pacific may shift from growth and prosperity to struggle and confrontation.

China and the US have yet to collide totally, but that moment is drawing near.

Source: SCMP

31/05/2020

China says 2 new coronavirus cases, asymptomatic case on German charter

BEIJING (Reuters) – China announced on Sunday two new confirmed cases of coronavirus and four new asymptomatic cases, including one person without symptoms of COVID-19 on a chartered flight from Germany.

The two confirmed cases in Shandong province on Saturday compared with four cases the day before, data from the country’s health authority showed.

The National Health Commission (NHC) confirmed three new asymptomatic cases on Saturday.

On Sunday, the Chinese city of Tianjin confirmed one asymptomatic person, a passenger arriving from Frankfurt on a chartered Lufthansa flight, LH342, to Tianjin. This case was discovered between midnight and 6 a.m. local time on Sunday, the city’s daily statements show.

These charter flights are part of an accelerated entry procedure offered by Beijing as China and Germany seek to reignite their economies after months of lockdown. The flight to Tianjin carried about 200 passengers, mostly German business executives.

Lufthansa has another charter flight scheduled for Shanghai on Wednesday.

A 34-year-old German engineer tested positive for the coronavirus after arriving in Tianjin but he does not have any symptoms, the Tianjin government said on its official social media platform Weibo.

The asymptomatic patient has been transferred to a local hospital to be placed under medical observation, the Tianjin government said, adding that the whole process was a “closed loop”, meaning posing no great risk to the Chinese public.

Source: Reuters

30/05/2020

China battles to control nationalist narrative on social media

  • Embassy in France removes ‘false image’ on Twitter in latest online controversy amid accusations of spreading disinformation
  • After months of aggressive anti-US posts by Chinese diplomats Beijing is cracking down on ‘smear campaigns’ at home
Beijing’s ‘Wolf Warrior’ diplomacy has coincided with a rise of nationalist content on Chinese social media. Photo: Reuters
Beijing’s ‘Wolf Warrior’ diplomacy has coincided with a rise of nationalist content on Chinese social media. Photo: Reuters

Beijing is battling allegations that it is running a disinformation campaign on social media, as robust posts by its diplomats in Western countries promoting nationalist sentiment have escalated into a spat between China and other countries, especially the United States.

In the latest in a series of online controversies, the Chinese embassy in France claimed its official Twitter account had been hacked after it featured a cartoon depicting the US as Death, knocking on a door marked Hong Kong after leaving a trail of blood outside doors marked Iraq, Libya, Syria, Ukraine and Venezuela. The inclusion in the image of a Star of David on the scythe also prompted accusations of anti-Semitism.

Top China diplomats call for ‘Wolf Warrior’ army in foreign relations

25 May 2020

“Someone posted a false image on our official Twitter account by posting a cartoon entitled ‘Who is Next?’. The embassy would like to condemn it and always abides by the principles of truthfulness, objectivity and rationality of information,” it said on Monday.

The rise of China’s aggressive “Wolf Warrior” diplomacy has been regarded by analysts as primarily aimed at building support for the government at home but the latest incident is seen as an attempt by Beijing to take back control of the nationalist narrative it has unleashed.

Florian Schneider, director of the Leiden Asia Centre in the Netherlands, said the removal of the embassy’s tweet reflected a constant concern in Beijing about the range of people – including ordinary citizens – who were involved in spreading nationalistic material online.

“The state insists that its nationalism is ‘rational’, meaning it is meant to inspire domestic unity through patriotism but without impacting national interests or endangering social stability,” he said.

“This makes nationalism a mixed blessing for the authorities … if nationalist stories demonise the US or Japan or some other potential enemy, then any Chinese leader dealing diplomatically with those perceived enemies ends up looking weak.

“Trying to guide nationalist sentiment in ways that further the leadership’s interests is a difficult balancing act and I suspect this is partly the reason why the authorities are currently trying to clamp down on unauthorised, nationalist conspiracy theories.”

Too soon: Chinese advisers tell ‘Wolf Warrior’ diplomats to tone it down

14 May 2020
Last month the European Union toned down a report which initially accused China of running a “global disinformation campaign”
to deflect blame for the coronavirus outbreak using “overt and covert tactics”. The section was removed after intervention by Beijing.

The report came after months of social media posts – including by Chinese diplomats – defending China against accusations it had mishandled the coronavirus pandemic and attacking the US and other perceived enemies.

In March, Chinese foreign ministry spokesman Zhao Lijian promoted a conspiracy theory on Twitter suggesting the virus had originated in the US and was brought to China by the US Army. His comments were later downplayed, with China’s ambassador to the US Cui Tiankai saying questions about the origin of the virus should be answered by scientists.

Schneider said this showed that the state-backed nationalistic propaganda online was at risk of backfiring diplomatically.

“The authorities have to constantly worry that they might lose control of the nationalist narrative they unleashed, especially considering how many people produce content on the internet, how fast ideas spread, and how strongly commercial rationales drive misinformation online,” he said.

Last month, a series of widely shared social media articles about people in different countries “yearning to be part of China” resulted in a diplomatic backlash against Beijing. Kazakhstan’s foreign ministry summoned the Chinese ambassador in April to lodge a formal protest against the article.

Following the incident, the Cyberspace Administration of China, the country’s internet regulator which manages the “firewall” and censors material online, announced a two-month long “internet cleansing” to clear privately owned accounts which engage in “smear campaigns”.

A popular account named Zhidao Xuegong was shut down by the Chinese social media platform WeChat’s owner Tencent on Sunday after publishing an article which claimed Covid-19 may have killed 1 million people in the US and suggested the dead were “very likely” being processed as food.

The article had at least 100,000 readers, with 753 people donating money to support the account. According to Xigua Data, a firm that monitors traffic on Chinese social media, the account garnered more than 1.7 million page views for 17 articles in April.

According to a statement from WeChat, the account was closed for fabricating facts, stoking xenophobia and misleading the public.

A journalism professor at the University of Hong Kong said this case differed from the Chinese embassy’s tweet, despite both featuring anti-US sentiment.

Masato Kajimoto, who leads research on news literacy and the misinformation ecosystem, said the closure of the WeChat account seemed to be more about Chinese authorities feeling the need to regulate producers of media content whose motivations were often financial rather than political.

“I would think the government doesn’t like some random misinformation going wild and popular, which affects the overall storylines they would like to push, disseminate and control,” he said.

One way for China to respond to the situation was to fact-check social media and to position itself as a protector facts and defender of the integrity of public information, he said.

“In the age of social media, both fake news and fact-checking are being weaponised by people who try to influence or manipulate the narrative in one way or another,” Kajimoto said.

“Not only China but also many other authoritarian states in Asia are now fact-checking social media. Governments in Singapore, Thailand, Indonesia and other countries all do that.

“Such initiatives benefit them because they can decide what is true and what is not.”

Source: SCMP

30/05/2020

US-China tensions set to worsen as moderates lose out to hardliners, observers say

  • Chinese groups calling for more ‘fighting spirit’ are getting the upper hand on those who favour calm and cooperation, government adviser says
  • From Hong Kong to Covid-19, trade to the South China Sea, Beijing and Washington are clashing on a growing number of fronts and in an increasingly aggressive way
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Moderates who favour dialogue and cooperation as a way to resolve China’s disputes with the United States are losing ground to hardline groups bent on taking the fight to Washington, according to political insiders and observers.
“There are two camps in China,” said a former state official who now serves as a government adviser and asked not to be named.
“One is stressing the combat spirit, the other is trying to relieve tensions. And the former has the upper hand.”
Relations between China and the US are under intense pressure. After Beijing moved to introduce a national security law for Hong Kong, US President Donald Trump said on Friday that Washington would begin eliminating the special policy exemptions it grants the city, as it no longer considers it autonomous from mainland China.
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
The two nations have also clashed over trade, Xinjiang, Taiwan and the South China Sea, with the US passing several acts denouncing Beijing and sanctioning Chinese officials.
China has also experienced turbulence in its relations with other countries, including Australia and members of the European Union, mostly related to the Covid-19 pandemic
 and Beijing’s efforts to position itself as a leader in the fight against the disease with its policy of “mask diplomacy”.

After Canberra appealed for an independent investigation to be carried out to determine the origins of the coronavirus, Beijing responded by imposing tariffs on imports of Australian barley, showing it is prepared to do more than just trade insults and accusations with its adversaries.

Pang Zhongying, a professor of international relations at Ocean University of China in Qingdao, said there was a worrying trend in China’s relations with other nations.

“We need political and diplomatic means to resolve the challenges we are facing, but … diplomatic methods have become undiplomatic,” he said.

“There are some who believe that problems can be solved through tough gestures, but this will never work. Without diplomacy, problems become confrontations.”

Chinese Foreign Minister Wang Yi

said during his annual press conference on the sidelines of the National People’s Congress last weekend that China and the United States must work together to prevent a new Cold War.

His words were echoed by Chinese Premier Li Keqiang, who said during a press conference after the closure of the legislative session on Thursday that the many challenges facing the China-US relations could only be resolved through cooperation.

However, the government adviser said there was often quite a chasm between what China’s leaders said and what happened in reality.

“Even though we say we do not want a Cold War, what is happening at the working level seems to be different.” he said. “The implementation of policies is not properly coordinated and often chaotic.”

Tensions between China and the US have been in a poor state since the start of a trade war almost two years ago. After multiple rounds of negotiations, the sides in January signed a phase one deal, but the positivity that created was short-lived.

In February, Beijing expelled three reporters from The Wall Street Journal over an article it deemed racist, while Washington has ramped up its military activity in the South China Sea and Taiwan Strait, and threatened to revoke the visas of Chinese students studying science and technology in the US over concerns they might be engaged in espionage.

Beijing has also used its state media and army of “Wolf Warrior” diplomats to promote its narrative, though many Chinese scholars and foreign policy advisers have said the latter’s nationalistic fervour has done more harm than good and appealed to Beijing to adopt a more conciliatory tone.
However, Hu Xijin, editor-in-chief of Chinese tabloid Global Times, said China had no option but to stare down the US, which regarded the world’s most populous nation as its main rival.
“Being contained by the US is too high a price for China to pay,” he said. “I think the best thing people can do is forget the old days of China-US ties”.

Jin Canrong, a professor of international relations at Renmin University in Beijing, wrote in a recent newspaper article that Beijing’s actions – notably enacting a national security law for Hong Kong – showed it was uncompromising and ready to stand its ground against the US.

Wu Xinbo, dean of international studies at Fudan University in Shanghai, agreed, saying relations between the two countries were likely to worsen in the run-up to the US presidential election in November and that Beijing should be prepared for a fight.

But Adam Ni, director of China Policy Centre, a think tank in Canberra, said the issue was not that the moderate camp had been sidelined, but rather Beijing’s perception of the US had changed.

“Beijing has woken up to the idea that America’s tough policy on China will continue and it is expecting an escalation of the tensions,” he said.

“The centre of gravity in terms of Beijing’s perception of the US has shifted, in the same way the US perception of China has shifted towards a more negative image”.

Beijing was simply responding in kind to the hardline, assertive manner of the US, he said.

Source: SCMP

30/05/2020

China-India border: Why tensions are rising between the neighbours

'Col Chewang Rinchen Setu', a bridge built by Border Roads Organisation (BRO) over River Shyok, connecting Durbuk and Daulat Beg Oldie in Eastern LadakhImage copyright PRESS INFORMATION BUREAU
Image caption The area has become a hotspot in part because of a road India has built

The armies of the world’s two most populous nations are locked in a tense face-off high in the Himalayas, which has the potential to escalate as they seek to further their strategic goals.

Officials quoted by the Indian media say thousands of Chinese troops have forced their way into the Galwan valley in Ladakh, in the disputed Kashmir region.

Indian leaders and military strategists have clearly been left stunned.

The reports say that in early May, Chinese forces put up tents, dug trenches and moved heavy equipment several kilometres inside what had been regarded by India as its territory. The move came after India built a road several hundred kilometres long connecting to a high-altitude forward air base which it reactivated in 2008.

The message from China appears clear to observers in Delhi – this is not a routine incursion.

“The situation is serious. The Chinese have come into territory which they themselves accepted as part of India. It has completely changed the status quo,” says Ajai Shukla, an Indian military expert who served as a colonel in the army.

China takes a different view, saying it’s India which has changed facts on the ground.

Reports in the Indian media said soldiers from the two sides clashed on at least two occasions in Ladakh. Stand-offs are reported in at least three locations: the Galwan valley; Hot Springs; and Pangong lake to the south.

A map showing the disputed area

India and China share a border more than 3,440km (2,100 miles) long and have  overlapping territorial claims. Their border patrols often bump into each other, resulting in occasional scuffles but both sides insist no bullet has been fired in four decades.

Their armies – two of the world’s largest – come face to face at many points. The poorly demarcated Line of Actual Control (LAC) separates the two sides. Rivers, lakes and snowcaps mean the line separating soldiers can shift and they often come close to confrontation.

The current military tension is not limited to Ladakh. Soldiers from the two sides are also eyeball-to-eyeball in Naku La, on the border between China and the north-eastern Indian state of Sikkim. Earlier this month they reportedly came to blows.

And there’s a row over a new map put out by Nepal, too, which accuses India of encroaching on its territory by building a road connecting with China.

Why are tensions rising now?

There are several reasons – but competing strategic goals lie at the root, and both sides blame each other.

“The traditionally peaceful Galwan River has now become a hotspot because it is where the LAC is closest to the new road India has built along the Shyok River to Daulet Beg Oldi (DBO) – the most remote and vulnerable area along the LAC in Ladakh,” Mr Shukla says.

India’s decision to ramp up infrastructure seems to have infuriated Beijing.

Human rights activists hold placards during a protest against India"s newly inaugurated link road to the Chinese border, near Indian embassy in Kathmandu on May 12, 2020.Image copyright AFP
Image caption There have been protests in Nepal against Indi’s new road link

Chinese state-run media outlet Global Times said categorically: “The Galwan Valley region is Chinese territory, and the local border control situation was very clear.”

“According to the Chinese military, India is the one which has forced its way into the Galwan valley. So, India is changing the status quo along the LAC – that has angered the Chinese,” says Dr Long Xingchun, president of the Chengdu Institute of World Affairs (CIWA), a think tank.

Michael Kugelman, deputy director of the Asia programme at the Wilson Center, another think tank, says this face-off is not routine. He adds China’s “massive deployment of soldiers is a show of strength”.

The road could boost Delhi’s capability to move men and material rapidly in case of a conflict.

Differences have been growing in the past year over other areas of policy too.

When India controversially decided to end Jammu and Kashmir’s limited autonomy in August last year, it also redrew the region’s map.

The new federally-administered Ladakh included Aksai Chin, an area India claims but China controls.

Senior leaders of India’s Hindu-nationalist BJP government have also been talking about recapturing Pakistan-administered Kashmir. A strategic road, the Karakoram highway, passes through this area that connects China with its long-term ally Pakistan. Beijing has invested about $60bn (£48bn) in Pakistan’s infrastructure – the so-called China Pakistan Economic corridor (CPEC) – as part of its Belt and Road Initiative and the highway is key to transporting goods to and from the southern Pakistani port of Gwadar. The port gives China a foothold in the Arabian Sea.

map
In addition, China was unhappy when India initially banned all exports of medical and protective equipment to shore up its stocks soon after the coronavirus pandemic started earlier this year.

How dangerous could this get?

“We routinely see both armies crossing the LAC – it’s fairly common and such incidents are resolved at the local military level. But this time, the build-up is the largest we have ever seen,” says former Indian diplomat P Stobdan, an expert in Ladakh and India-China affairs.

“The stand-off is happening at some strategic areas that are important for India. If Pangong lake is taken, Ladakh can’t be defended. If the Chinese military is allowed to settle in the strategic valley of Shyok, then the Nubra valley and even Siachen can be reached.”

In what seems to be an intelligence failure, India seems to have been caught off guard again. According to Indian media accounts, the country’s soldiers were outnumbered and surrounded when China swiftly diverted men and machines from a military exercise to the border region.

This triggered alarm in Delhi – and India has limited room for manoeuvre. It can either seek to persuade Beijing to withdraw its troops through dialogue or try to remove them by force. Neither is an easy option.

“China is the world’s second-largest military power. Technologically it’s superior to India. Infrastructure on the other side is very advanced. Financially, China can divert its resources to achieve its military goals, whereas the Indian economy has been struggling in recent years, and the coronavirus crisis has worsened the situation,” says Ajai Shukla.

What next?

History holds difficult lessons for India. It suffered a humiliating defeat during the 1962 border conflict with China. India says China occupies 38,000km of its territory. Several rounds of talks in the last three decades have failed to resolve the boundary issues.

China already controls the Aksai Chin area further east of Ladakh and this region, claimed by India, is strategically important for Beijing as it connect its Xinjiang province with western Tibet.

File photo of an Indian and Chinese soldier on the borderImage copyright GETTY IMAGES
Image caption India and China have a long history of border disputes

In 2017 India and China were engaged in a similar stand-off lasting more than two months in Doklam plateau, a tri-junction between India, China and Bhutan.

India objected to China building a road in a region claimed by Bhutan. The Chinese stood firm. Within six months, Indian media reported that Beijing had built a permanent all-weather military complex there.

This time, too, talks are seen as the only way forward – both countries have so much to lose in a military conflict.

“China has no intention to escalate tensions and I think India also doesn’t want a conflict. But the situation depends on both sides. The Indian government should not be guided by the nationalistic media comments,” says Dr Long Xingchun of the CIWA in Chengdu. “Both countries have the ability to solve the dispute through high-level talks.”

Chinese media have given hardly any coverage to the border issue, which is being interpreted as a possible signal that a route to talks will be sought.

Pratyush Rao, associate director for South Asia at Control Risks consultancy, says both sides have “a clear interest in prioritising their economic recovery” and avoiding military escalation.

“It is important to recognise that both sides have a creditable record of maintaining relative peace and stability along their disputed border.”

Source: The BBC

29/05/2020

Xi Focus: Xi replies to letter from scientific, technological workers

BEIJING, May 29 (Xinhua) — President Xi Jinping on Friday encouraged scientific and technological workers across China to make new and greater contributions to building China into a global power in science and technology.

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made the remarks in replying to a letter by 25 representatives of sci-tech workers. He also called for efforts to achieve breakthroughs in key and core technologies.

Xi extended greetings to sci-tech workers across the country ahead of China’s fourth national sci-tech workers’ day, which falls on May 30.

A vast number of sci-tech workers have dedicated themselves to serving the country through their innovative thinking and practices, Xi noted.

He pointed out that innovation is the primary driving force for development, and science and technologies are powerful tools to overcome difficulties.

Facing the sudden COVID-19 outbreak, sci-tech workers have risen up to challenges and worked day and night on the clinical treatment, vaccine research and development, material support as well as big data application, providing sci-tech support against the epidemic, Xi said.

Xi hoped that sci-tech workers across the country strive to resolve problems with key and core technologies, promote the in-depth integration of application, education and scientific research, reach the peak of science and technology and make new and greater contributions to building China into a global power in science and technology.

In November 2016, the State Council, China’s cabinet, set down May 30 as the national sci-tech workers’ day.

Recently, 25 representatives of sci-tech workers, including agronomist Yuan Longping, respiratory specialist Zhong Nanshan and space expert Ye Peijian, wrote to Xi to express their determination to make contributions in the new era of innovation and entrepreneurship.

Source: Xinhua

29/05/2020

Xi Focus: Xi’s “two sessions” messages reassuring at difficult times

The closing meeting of the third session of the 13th National People’s Congress (NPC) is held at the Great Hall of the People in Beijing, capital of China, May 28, 2020. Leaders of the Communist Party of China and the state Xi Jinping, Li Keqiang, Wang Yang, Wang Huning, Zhao Leji, Han Zheng and Wang Qishan attended the meeting, and Li Zhanshu presided over the closing meeting and delivered a speech. (Xinhua/Ju Peng)

BEIJING, May 28 (Xinhua) — Eradicating absolute poverty, upholding people-centered philosophy and seeking new opportunities from challenges, Chinese President Xi Jinping brought reassuring messages at times of uncertainty and difficulty.

Xi spoke on a wide range of topics at this year’s “two sessions,” which closed on Thursday.

The two sessions are the country’s annual meetings of the National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, participated in deliberations with national legislators and joined in discussions with political advisors.

Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, takes part in a deliberation with his fellow deputies from the delegation of Inner Mongolia Autonomous Region at the third session of the 13th National People’s Congress (NPC) in Beijing, capital of China, May 22, 2020. (Xinhua/Ju Peng)

PEOPLE FIRST

An NPC deputy himself, Xi joined deliberations with lawmakers from north China’s Inner Mongolia Autonomous Region on May 22, the first day of the annual session of the national legislature.

“People first” was the keyword in the discussions. Xi referred to the recovery of an 87-year-old COVID-19 patient after 47 days of care by a team of 10 doctors and nurses.

“Many people worked together to save a single patient. This, in essence, embodies doing whatever it takes (to save lives),” he said.

China mounted swift and sweeping actions to contain the disease. It has mobilized the best doctors, most advanced equipment and high-demand resources. The eldest patient to have been cured is 108 years old.

“President Xi emphasized people and lives are the top priorities,” said Huhbaater, a professor of Inner Mongolia Agricultural University and an NPC deputy who heard Xi speak.

NEW OPPORTUNITIES

China decided not to set a specific annual economic growth target for 2020, but set eyes on winning the battle against poverty and finishing building a moderately prosperous society in all respects.

Xi touched upon the absence of a numerical growth target. “Had we imposed a target, the focus would have been strong stimulus and a simple grasp on growth rate. That is not in line with our social and economic development purposes,” he said.

Xi urged efforts in seeking new opportunities amid challenges as he joined discussions with national political advisors from the economic sector on May 23.

“Our economy is still characterized by ample potential, strong resilience, large maneuver room and sufficient policy instruments,” Xi said.

China has the largest industrial system in the world with the most complete categories, strong production capabilities and complete supporting sectors, as well as over 100 million market entities and a talent pool of 170 million people.

The Chinese president anticipates faster growth in the digital economy, intelligent manufacturing, life and health, new materials and other strategic emerging industries, highlighting the creation of new growth areas and drivers.

Xi stressed steady progress in creating a new development pattern where domestic and foreign markets can boost each other, with the domestic market as the mainstay.

He called for unwavering efforts to make economic globalization more open, inclusive and balanced so that its benefits are shared by all, and to build an open world economy.

Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, joins a deliberation with deputies from Hubei Province at the third session of the 13th National People’s Congress (NPC) in Beijing, capital of China, May 24, 2020. (Xinhua/Li Xueren)

PUBLIC HEALTH PROTECTION

On May 24, Xi joined deliberations with lawmakers from central China’s Hubei Province, which was the hardest hit by COVID-19.

“We must face the problems upfront, step up reform and waste no time in addressing the shortcomings, insufficiencies and loopholes exposed by the epidemic,” he said, stressing fortifying the public health protection network.

Xi noted several priorities: reforming the disease prevention and control system; boosting epidemic monitoring, early warning and emergency response capacity; perfecting the treatment system for major epidemics; and improving public health emergency laws and regulations.

ENHANCING NATIONAL DEFENSE

When attending a plenary meeting of the delegation of the People’s Liberation Army and People’s Armed Police Force, Xi commended their role in battling COVID-19 and stressed achieving the targets and missions of strengthening the national defense and armed forces for 2020.

The epidemic has brought a profound impact on the global landscape and on China’s security and development as well, he said.

He ordered the military to think about worst-case scenarios, scale up training and battle preparedness, promptly and effectively deal with all sorts of complex situations, and resolutely safeguard national sovereignty, security and development interests.

Noting that this year marks the end of the 13th five-year plan for military development, Xi said extraordinary measures must be taken to overcome the impact of the epidemic to ensure major tasks on the military building are achieved.

Source: Xinhua

29/05/2020

China, responding to Trump, says no need for a third party in border dispute with India

BEIJING (Reuters) – China said there was no need for a third party to mediate between China and India in an ongoing border dispute, when asked about U.S. President Donald Trump’s offer to mediate.

Foreign ministry spokesman Zhao Lijian made the comments a daily briefing Friday.

Source: Reuters

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