Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
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The Battle of Triangle Hill is known in China as a victory against foreign aggressors
Film’s timing linked to deteriorating relations between Beijing and Washington on multiple fronts
A scene from the 1956 Chinese film Shang Gan Ling, about the Korean war Battle for Triangle Hill, subject of a new film which is about to go into production in China. Photo: Handout
One of the bloodiest battles of the Korean war is the subject of a film that will soon start production in China, in a move which is being linked to surging Chinese nationalism amid poor relations between Beijing and Washington.
The film, based on the Battle of Triangle Hill – also known as the Shang Gan Ling campaign in China – was given the green light by state regulator the China Film Administration in July, but was not reported by Chinese official media until last week.
Hou Jianwei, one of China’s best known war novelists, has been signed on as screenwriter for the film, to be produced by Ao Bo Film Zhejiang which confirmed on microblogging platform Weibo that production was already in “active preparation”.
“More than 100,000 people from the People’s Voluntary Army and forces from the US and South Korea took part in the 43-day fighting, and over 2.4 million shells of ammunition were fired. The battle was unprecedentedly fierce and 40,000 lives were lost,” the film company said in its most recent Weibo post.
“With a multitude of heroes, our army built up an impenetrable barrier in the East.”
China invokes Korean war talks as reason not to bow to US in trade dispute
News of the film has coincided with mounting confrontations between Beijing and Washington on multiple fronts ranging from trade and technology, to Hong Kong and Xinjiang.
Korean war-themed productions have long been a taboo subject for China’s heavily censored film industry, partly because of Beijing’s complicated relations with the US and North Korea.
But the 1950-53 war, in which China and North Korea battled Western forces led by the US, has increasingly become a tool to rally public opinion behind Beijing’s ongoing trade war with the US. Study Times, a Central Party School publication, for example, has directly likened the trade war to the end of the Korean conflict, saying China was determined to oppose US bullying as trade negotiations entered their 17th month.
While Beijing has never given an official account of its decision to join the Korean war, it is often portrayed as a necessary intervention to shield China from US aggression.
The Battle of Triangle Hill has often been presented in China’s official media as a victory by the “volunteers” of the People’s Liberation Army over foreign aggressors.
News of the production has raised avid discussion on Chinese social media, with many seeing the new film as part of China’s efforts to reinforce surging Chinese nationalism in the face of growing pressure from the West.
“Isn’t the approval [to make the film] a strong signal to the West that we are now a strong power?” one Weibo microblogger wrote.
The leaders agreed to set up a mechanism to boost economic ties and tackle India’s trade deficit with China after their second informal summit
As 2020 is the 70th anniversary of diplomatic ties between both countries, India and China will hold 70 events next year to promote relations
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping during their meeting in Mamallapuram, Chennai. Photo: EPA
Chinese President Xi Jinping and Indian Prime Minster Narendra Modi concluded their second informal summit on Saturday by pledging to overcome trade differences and appreciate “each other’s autonomous foreign policies”, signalling an effort to focus on mutual interests rather than on long-standing contentious issues.
Modi remarked that both sides had agreed to be “sensitive” to each other’s concerns and not let differences escalate into disputes, while Xi called for communication to “alleviate suspicions” and for India and China to enhance strategic mutual trust, according to state news broadcaster CCTV.
Their desire to look beyond irritants in diplomatic ties, including a decades-long border row and China’s close military ties with India’s arch rival, Pakistan, comes as Beijing is embroiled in a tariff war with Washington that has rocked the global economy.
In a sign of China’s willingness to address India’s trade deficit with it, the leaders agreed to launch a “High Level Economic and Trade Dialogue”.
As Xi meets Modi, Chinese in Chennai hope to witness the ‘Wuhan spirit’
Chinese Vice-Premier Hu Chunhua and Indian Finance Minister Nirmala Sitharaman will meet regularly to discuss ways to boost two-way trade and investments, Indian foreign secretary Vijay Gokhale said in a media briefing.
India has a US$53 billion trade deficit with China, which makes up almost a third of its total trade deficit. It is also facing pressure to decide if it will commit to the China-led
(RCEP), which aims to create the world’s largest trading bloc involving 16 countries before the end of the year.
Narendra Modi exchanges gifts with Xi Jinping. Photo: AFP
Negotiations are ongoing with talks taking place in Bangkok this week, but India’s domestic producers have opposed the agreement over fears of a flood of Chinese imports. On Friday, the Indian government rejected clauses in the agreement related to e-commerce, according to reports.
Gokhale told the media briefing that both leaders, who met in the coastal town of Mamallapuram about 50km away from Chennai, briefly discussed the RCEP.
“PM Modi said India was looking forward to the RCEP but it is important that RCEP is balanced, that a balance is maintained in trade in goods, trade in services and investments,” he said, adding that Xi agreed to further discussions of India’s concerns on the issue.
Narendra Modi with Xi Jinping in Mamallapuram. Photo: EPA
CCTV said Xi had six suggestions for how China and India could further improve ties, including assessing each other correctly and stepping up cooperation between their militaries. Besides economic and trade dialogue, China welcomed Indian pharmaceutical and IT companies to invest there, he said.
“We should look at disputes with a correct mind, and not let disputes affect cooperation.
“Both sides should properly and fairly get a solution for border disputes that are acceptable to each other … [and] cautiously handle each other’s core interests, and take proper measures to control issues that cannot be resolved immediately,” the president reportedly said.
Gokhale told reporters that both countries had agreed to pursue, through special representatives, an ongoing dialogue on their disputed border. China and India have held more than 20 rounds of talks to resolve their boundary dispute, over which they went to war in 1962. Different mechanisms have been set up to maintain peace along the 4,000-kilometre (2,485-mile) so-called Line of Actual Control.
Xi and Modi bank on chemistry as they talk trade and terrorism
Gokhale confirmed that the leaders – who met for a total of seven hours over Friday and Saturday, with the bulk of their time spent in one-on-one talks – did not discuss
has lobbied its allies – including its all-weather friend China – to support its opposition to the move. New Delhi had reacted sharply to Beijing’s move to take the matter to the United Nations, insisting that it was a purely bilateral issue. Two days before the summit, Xi had hosted Pakistan Prime Minister Imran Khan and had assured him of China’s support on all core issues, a statement that had irked India.
Gokhale said both leaders “emphasised the importance of having independent and autonomous foreign policies”.
“President Xi said that the two countries needed to have more extensive dialogue in order to understand each other’s perspectives on major global and regional issues,” he added.
Narendra Modi exchanges gifts with Xi Jinping. Photo: AFP
The leaders also discussed terrorism, with a statement issued later by New Delhi saying both sides would make efforts to ensure the international community strengthened its framework “against training, financing and supporting terrorist groups throughout the world and on a non-discriminatory basis”.
The China-led multilateral Financial Action Task Force, which has been investigating Pakistan’s efforts to stamp out the financing of terrorism, is expected to decide soon if it would add Islamabad to its blacklist along with Iran and North Korea, a move that could invite stringent economic sanctions and drive away international financial institutions, both of which could affect Pakistan’s already-indebted economy adversely.
Gokhale added that as 2020 is the 70th anniversary of diplomatic ties between both countries, India and China will hold 70 events next year to promote people-to-people ties, with Modi accepting an invitation by Xi for the next informal summit to be held in China.
Both leaders had struck positive notes on the summit – with Xi describing their discussions as “candid” and between friends and Modi hailing the “Chennai Connect” meeting as marking a new era of cooperation between both countries.
War games, Kashmir and a US$57b question: the issues as Xi meets Modi
But analysts said they would be looking to see how the newly-announced high-level mechanism on trade panned out.
Narayani Basu, a New Delhi-based author, foreign policy analyst and China watcher felt the summit had achieved its purpose of bagging small wins for both sides.
“Discussing contentious issues would have defeated the purpose of the summit. The idea behind such a summit must be that despite the overarching posturing on different divergent issues, the two countries can achieve the easily-achievable wins. That is what the summit seems to have tried doing.”
But in terms of actual outcomes, she said she remained sceptical.
“I don’t think there has been much progress in the ties between the two countries since the last summit in Wuhan. Hence, this time, there is a lot more caution and scepticism towards such a summit,” she said, referring to the first summit last year in the Chinese city of Wuhan.
During Xi’s visit to southern India, which lasted 24 hours in all, Modi took him on a personal tour of temple monuments dating back to the seventh and eighth century in Mamallapuram when regional leaders had trade ties with Chinese provinces. He was also shown local artisan handicrafts and art forms, and gifted a handwoven silk portrait, a lamp and a painting.
Xi gave Modi a porcelain plate with the image of the prime minister’s face printed on it.
Xi Jinping with Narendra Modi in Mamallapuram. Photo: Reuters
On Friday, New Delhi announced that visa rules for Chinese nationals visiting India would be relaxed, with multiple-entry visas with a validity period of five years available from this month onwards. At present, most visas are single-entry and usually for between 30 and 60 days. Visa fees would also be reduced, the government said, with the multiple-entry visa costing US$80.
This was aimed at further enhancing “people-to-people exchanges between the two countries and [encouraging] more Chinese tourists to choose India as a destination for tourism purposes,” it said in a statement.
Xi left Chennai on Saturday afternoon and arrived in Nepal, which lies in between India and China. He will be the first Chinese president to visit Nepal in 22 years and is expected to sign a slew of deals with Nepal’s Prime Minister K.P. Sharma Oli, including the planned extension of the rail link from remote, mountainous Tibet to Nepal’s capital, Kathmandu.
The link will be part of Beijing’s ambitious infrastructure project to boost trade, the
More than 120 countries have signed on to the BRI, including Pakistan, where a series of projects worth US$46 billion are being constructed under the China-Pakistan Economic Corridor (CPEC). India has snubbed the BRI and questioned the transparency of funding agreements.
Leaders exchange congratulatory messages on 70th anniversary of diplomatic relations amid speculation that Kim Jong-un will visit China soon
It comes after Pyongyang’s denuclearisation negotiations with Washington broke off in Stockholm without any breakthroughs
North Korean leader Kim Jong-un (left) may soon visit China again. He last met Xi Jinping during the Chinese leader’s trip to Pyongyang in June. Photo: AFP
China and North Korea on Sunday vowed to continue strengthening their ties that have “stood the test of time”, hours after another squabble broke out between Pyongyang and Washington over the breakdown of their first nuclear talks in eight months.
Chinese President Xi Jinping exchanged congratulatory messages with North Korean leader Kim Jong-un on the 70th anniversary of diplomatic ties, according to state media in both countries, amid speculation that Kim will soon pay another visit to China.
Observers said the communist neighbours’ warm exchanges and Kim’s possible visit showed Beijing and Pyongyang shared mutual interests and needed each other in their respective geopolitical plans to counter Washington – especially as they both come under pressure from US President Donald Trump.
The two countries are said to be preparing for Kim to visit China as early as Sunday, which would be his fifth China trip since March last year and the first since Xi’s state visit to Pyongyang in June.
But given Pyongyang’s denuclearisation negotiations with Washington on Saturday – which broke off in Stockholm without any breakthroughs – China and North Korea may need to reconsider or delay Kim’s visit to avoid criticism of Beijing’s role in the nuclear talks, one expert suggested.
“The triangular ties between China, the United States and North Korea are of immense importance in finding a solution to the nuclear issue on the Korean peninsula and Beijing’s role in the talks has always been sensitive, especially in the eyes of the US and its allies,” said Wang Sheng, a North Korea specialist at Jilin University.
“While China will almost certainly reiterate its stance to support continued dialogue and talks between Pyongyang and Washington, it may not be a good time for Kim’s high-profile visit just a day after their talks broke down, which would inevitably make it more difficult for China to play a mediating role,” he said.
On Sunday, Xi said the traditional friendship between the two countries had “stood the test of time and changes in the international landscape, growing stronger with the passage of time” and “made important and positive contributions to regional peace and stability”, according to Chinese state news agency Xinhua.
Citing his five recent meetings with Kim, Xi said bilateral ties had entered a new era and China would promote “long-term, healthy and stable” relations with North Korea.
Kim also hailed the special relationship between the two countries, which he said had been forged “at the cost of blood” and “weathered all tempests while sharing weal and woe with each other”, the Korean Central News Agency reported.
North Korean mouthpiece Rodong Sinmun meanwhile said in a commentary that bilateral ties with Beijing were “fully in accordance” with the interests of the two sides and would develop “regardless of the international situation”, according to South Korea’s Yonhap news agency.
The lavish praise for Sino-North Korean relations comes as a group of working-level officials from North Korea are working with the Chinese side for a possible visit by Kim in the next few days, according to South Korea’s Dong-A Ilbo.
China and North Korea have set aside their differences as both countries come under pressure from US President Donald Trump. Photo: AFP
North Korea was among the first countries to recognise the People’s Republic of China
70 years ago and Xi has exchanged three messages with Kim in the past month, repeatedly pledging to move closer despite lingering grievances over Pyongyang’s nuclear brinkmanship.
In the face of Trump’s increasingly antagonistic approach, the former communist allies – whose relationship deteriorated over Beijing’s support for the UN sanctions against the North, led by Washington – have set aside their differences to patch up ties in recent months.
Meanwhile, Pyongyang’s first nuclear talks with Washington in eight months ended on Saturday with the two sides offering conflicting assessments of their first formal discussion since the failed Trump-Kim summit in Vietnam in February.
North Korea’s top negotiator Kim Myong-gil expressed his “great displeasure” with the discussions, blaming Washington and urging the Trump administration to correct its course and keep the talks alive or “forever close the door to dialogue”, according to Yonhap.
North Korean negotiator Kim Myong-gil expressed his “great displeasure” with the discussions on Saturday. Photo: AP
But the US State Department issued a rebuke hours later, claiming the negotiators had a “good discussion”. State Department spokeswoman Morgan Ortagus said in a statement that the US had put forward “creative ideas” and “a number of new initiatives that would allow us to make progress in each of the four pillars of the Singapore joint statement”.
The two countries were not expected to “overcome a legacy of 70 years of war and hostility on the Korean peninsula through the course of a single Saturday”, she said, adding that Washington would return for more discussions with Pyongyang in two weeks at Sweden’s invitation.
As Trump administration enters survival mode, foreign policy moves are anyone’s guess
Wang from Jilin University said the breakdown of another round of talks had again laid bare the huge gap between the two sides over a long list of issues, from the definition of denuclearisation to their vastly different, often conflicting, demands and interests.
“It’s very likely that Washington has again rejected some of Pyongyang’s key demands in the recent talks, such as providing a security guarantee for Kim’s regime and a range of economic sanctions relief,” he said.
And with North Korea a polarising issue in the looming US presidential poll for Trump as he seeks to score diplomatic points for his re-election bid, it might become even more challenging for the two sides to narrow their differences.
“The breakdown of the talks should not be seen as a failure,” Wang said. “It simply underscores the difficulty of reaching any consensus in the nuclear talks, which still have a long way to go.”
TOKYO (Reuters) – China’s growing military might has replaced North Korean belligerence as the main security threat to Japan, Tokyo’s annual defence review indicated on Thursday, despite signs that Pyongyang could have nuclear-tipped ballistic missiles.
The document’s security assessment on China comes after a section on Japan’s ally, the United States, the first time Beijing has achieved second place in the Defence White Paper and pushing North Korea into third position.
Russia, deemed by Japan as its primary threat during the Cold War, was in fourth place.
“The reality is that China is rapidly increasing military spending, and so people can grasp that we need more pages,” Defence Minister Taro Kono said at a media briefing.
“China is deploying air and sea assets in the Western Pacific and through the Tsushima Strait into the Sea of Japan with greater frequency.”
China’s Foreign Ministry expressed displeasure with the report.
China will not accept Japan’s “groundless criticism” of its normal national defence and military activities, spokesman Geng Shuang said at a press briefing in Beijing.
Japan has raised defence spending by a tenth over the past seven years to counter military advances by Beijing and Pyongyang, including defences against North Korean missiles which may carry nuclear warheads, the paper said.
North Korea has conducted short-range missile launches this year that Tokyo believes show Pyongyang is developing projectiles to evade its Aegis ballistic missile defences.
To stay ahead of China’s modernising military, Japan is buying U.S.-made stealth fighters and other advanced weapons.
In its latest budget request, Japan’s military asked for 115.6 billion yen ($1.1 billion) to buy nine Lockheed Martin (LMT.N) F-35 stealth fighters, including six short take-off and vertical landing (STOVL) variants to operate from converted helicopter carriers.
The stealth jets, U.S.-made interceptor missiles and other equipment are part of a proposed 1.2% increase in defence spending to a record 5.32 trillion yen in the year starting April 1.
By comparison, Chinese military spending is set to rise this year by 7.5% to about $177 billion from 2018, more than three times that of Japan. Beijing is developing weapons such as stealth fighters and aircraft carriers that are helping it expand the range and scope of military operations.
Once largely confined to operating close to the Chinese coast, Beijing now routinely sends its air and sea patrols near Japan’s western Okinawa islands and into the Western Pacific.
China has frequently rebuffed concerns about its military spending and intentions, including an increased presence in the disputed South China Sea, and says it only desires peaceful development.
The Defence White Paper said Chinese patrols in waters and skies near Japanese territory are “a national security concern”.
The paper downgraded fellow U.S. ally, South Korea, which recently pulled out of an intelligence sharing pact with Japan amid a dispute over their shared wartime history. That could weaken efforts to contain North Korean threats, analysts said.
Other allies, including Australia, the Association of Southeast Asian Nations (ASEAN) and India, feature more prominently in the defence paper.
South Korean government officials took issue with the White Paper’s reference to ownership of an island in the Sea of Japan that is also claimed and controlled by South Korea. The outcrop is known as Dokdo in Seoul and Takeshima in Tokyo.
“Our government strongly protests Japan’s repeated claim. The Japanese government should acknowledge that it is not helpful for bilateral relations,” South Korea’s foreign ministry said.
SEOUL (Reuters) – Top diplomats of South Korea and Japan plan to meet their Chinese counterpart in Beijing next week amid a flare-up in tension over trade and history, Seoul’s foreign ministry said on Friday.
Foreign ministers Kang Kyung-wha of South Korea, Taro Kono of Japan and Wang Yi of China will meet from Tuesday to Thursday, the ministry said. The last such gathering was three years ago.
Kang and Kono are also expected to meet separately on the sidelines of the event, for the first time since South Korean President Moon Jae-in on Thursday urged dialogue to mend ties. The ministry said the two-way talks had not yet been finalised.
Ties between the neighbors are arguably at their lowest ebb since their relationship was normalized in 1965, hit by a heated feud over the issue South Korean forced labor during World War Two which spilled over into a bitter tit-for-tat trade row.
In a speech marking Korea’s independence from Japan’s 1910-45 rule, Moon toned down his recent stringent rhetoric regarding Japan, saying Seoul would “gladly join hands” if Tokyo chose dialogue and cooperation.
At the meeting, the ministers are also expected to prepare for a summit planned later this year.
From 2008, the three countries had agreed to hold a summit every year to foster regional cooperation. But bilateral tension, including that between China and Japan, has often intervened.
“We expect the meeting will help reinforce the institutionalization and substantiate the foundation of the three-way cooperative scheme,” the ministry said in a statement.
Relations between South Korea and Japan worsened sharply after the South’s Supreme Court last year ordered Japanese companies to compensate some wartime forced laborers. Tokyo says the matter was settled by the 1965 treaty normalizing ties.
The talks come at a sensitive time ahead of the Aug. 28 date when Japan’s decision to end South Korea’s fast-track trade status takes effect, a move that prompted South Korea to follow suit.
As a countermeasure, Seoul has also warned it could consider scrapping an intelligence-sharing pact usually automatically renewed on Aug. 24 every year.
The accord, the General Security of Military Information Agreement (GSOMIA), eases three-way intelligence gathering with Washington which is pivotal in dealing with North Korea’s nuclear and missile threats.
In a separate statement, the South Korean foreign ministry expressed concern over Kono’s reported remarks that Moon should “exert his leadership” to resolve the dispute, saying they were unhelpful for stable management of two-way ties.
Three-year-old security treaty between US and two key allies under threat as tensions between Seoul and Tokyo continue to escalate
End of General Security of Military Information Agreement risks undermining Washington’s influence in the region
South Korean protesters hold signs saying “No Abe” during a rally demanding the abolition of the General Security of Military Information Agreement. Photo: AP
The possible termination of a military information-sharing pact between South Korea and Japan would be a symbolic victory for China, a security analyst has warned.
Recent tension between the two countries recently threatened to spill over into the sphere of intelligence after Seoul signalled that it may pull out of the General Security of Military Information Agreement (GSOMIA) pact.
The agreement signed in 2016 enables three-way intelligence gathering between the US and its two allies and provides a crucial framework for coping with North Korea’s nuclear and missile threats.
But the escalating trade dispute between Seoul and Tokyo, prompted by a dispute about Japan’s colonial legacy, has left the future of the deal in jeopardy as the annual deadline for its renewal looms.
Japan approves first hi-tech exports to South Korea since start of ‘trade war’ – but with a warning
Ramon Pacheco Pardo, the first Korea chair at the Institute for European Studies at Vrije Universiteit Brussel in Belgium, said scrapping the pact would help strengthen China’s influence in the Asia-Pacific region at the expense of the US.
“It is undeniable that termination of GSOMIA would dent the US-South Korea-Japan alliance. The alliance system in northeast Asia will be weaker, strengthening China in relative terms in the process. “This could embolden China and Russia to strengthen their military cooperation in northeast Asia, said Pardo, a member of the non-governmental EU Council for Security Cooperation in the Asia-Pacific.
“Ending GSOMIA would signal that South Korea and Japan are not ready to follow Washington’s lead in the way the latter would like, given the political capital that successive US administrations spent in convincing both countries to share intelligence.”
Ramon Pacheco Pardo said the collapse of the pact would have a largely symbolic impact on China. Photo: Facebook
But Pardo also stressed that the intelligence alliance was not directly targeting China.
“While it is true that GSOMIA serves to connect the weakest link of the US-South Korea-Japan security triangle, ultimately South Korea’s security posture and the capabilities of each country independently mean that it is difficult to argue that the agreement is a concerted effort to contain China.”
“After all, Beijing does not share any significant information on North Korea’s nuclear and missile programmes with South Korea, Japan or the US.
“This is not going to change any time soon. So the good news for China would be symbolic rather than substantial.”
US missiles, jittery neighbours and South Korea’s big security dilemma
Beijing warned on Tuesday that it would take “countermeasures” if the US deployed ground-based missiles in either Japan or South Korea, and Pardo argued that scrapping the intelligence-sharing pact would expose the weaknesses in their co-ordinated approach towards China.
The security deal is automatically renewed every year unless one party decides to pull out. To do so, it must notify the others 90 days before its expiry – a deadline that falls on August 23.
The trade row was sparked by a recent South Korean court ruling that Japanese should compensate individual victims of wartime forced labour. Tokyo believes it settled all necessary compensation under a treaty signed in 1965, but Seoul believes that individual victims’ right to file a claim has not expired.
Relations between South Korea and Japan have deteriorated following a court ruling over forced labour in the wartime era. Photo: Shutterstock
Last week Japan said it would remove South Korea from its “white list” of countries with preferential trade status. Seoul has threatened to respond in kind, but also warned that it may reconsider whether to renew the intelligence-sharing pact.
Both the US and Japan have said they want the arrangement to continue, but Pardo said the effect of the termination would remain largely symbolic.
South Korea has already been investing in its own satellite and anti-submarine programmes to monitor the North’s activities, while Japan has also been developing its own intelligence programmes.
“This shows that neither South Korea nor Japan wants to rely on each other or third parties, namely the US, when it comes to monitoring North Korea’s military activities,” Pardo said.
But he argued that this behaviour already indicated that the alliance was weakening and suggested that terminating the treaty would increase China’s room for manoeuvre.
South Korea buys helicopters worth US$800 million after Trump seeks contribution for US presence
Since the 1990s successive US administrations have pushed for intelligence-sharing arrangements with Japan and South Korea to help build a framework to check Chinese and Russian military expansion in the Pacific.
“Beijing and Moscow are clearly moving in the direction of closer cooperation anyway. GSOMIA or not, military cooperation will continue … as long as Xi Jinping and Vladimir Putin lead each country and most probably even beyond then,” Pardo said.
China and Russia flexed their muscles in the region last month as the trade dispute between the two key allies intensified.
Russian and Chinese long-range military aircraft conducted their first-ever joint air patrol over the Sea of Japan – also known as the East Sea – and the East China Sea.
“The East Asian security landscape would be reshaped insofar that China, North Korea and Russia would see that their main opponent in the region – the US – is unable to convince its two key allies, South Korea and Japan, to cooperate on a key issue,” Pardo said.
“The current dispute between South Korea and Japan will need a negotiated solution … In any case, Japan will have to learn to live with the fact that former colonisers will, from time to time, receive criticism by many of their former colonies, criticism that sometimes will escalate.
“It happens to former European colonial powers, for example, and it is only logical because the interpretation of the past is always in flux.”
The pair agreed to work together to promote “free and fair trade” following a “very frank exchange”, a Japanese official said.
It is the first official visit Mr Xi has made to Japan since becoming president in 2013. At the outset of their talks on Thursday, Mr Abe invited him to return on a state visit next year.
“Around the time of the cherry blossoms next spring, I would like to welcome President Xi as a state guest to Japan,” he said. “[I] hope to further elevate ties to the next level.”
What did the leaders discuss?
Japan and China are by far Asia’s largest economies and the talks on Thursday focused strongly on business.
Last year, the two sides signed a deal to maintain annual dialogue and to co-operate on innovation. This time around, officials say, they pledged to develop a “free and fair trading system” in a “complicated” global economic landscape.
Media caption North Korea has been called out for evading UN sanctions
Another topic on the schedule would probably have been North Korea. While China is North Korea’s biggest trading partner, both Tokyo and Beijing want it to abandon its nuclear programme.
Mr Abe has only very limited leverage on the matter and will try to sway both the US and China to keep Tokyo’s interests in mind in any negotiations.
The G20 summit will begin on Saturday, but the main meeting is likely to be overshadowed by the many bilateral talks that are set to happen on the sidelines.
For example, Mr Xi will meet President Trump as China and the US try to resolve their trade dispute.
Do Japan and China get along?
In the past, relations have been tense. While the two countries do have close trade ties, politically things have been much more fragile.
Image copyright EPAImage caption Japan and China have not always had warm relations
Japan’s World War Two occupation of parts of China remains a very emotional issue. There are also several ongoing territorial disputes between Tokyo and Beijing.
But tensions with Washington over its protectionist trade policy have driven Japan and China into an unlikely friendship.
In 2018, Mr Abe hailed his high-profile visit to Beijing as an historic turning point. Both leaders have since promised to establish positive, constructive, relations.
Stalled denuclearisation talks also expected to be on the agenda when Chinese president meets Kim Jong-un this week
Analysts say Korean peninsula has become intense diplomatic battleground between Beijing and Washington
North Korean leader Kim Jong-un (right) attends a welcome ceremony in Beijing with Chinese President Xi Jinping in January. Xi will begin a visit to Pyongyang on Thursday. Photo: AP
will be a state visit – a higher status than the last trip to the hermit kingdom by a Chinese president, highlighting the close bilateral ties between Beijing and Pyongyang.
, is the first by a Chinese president to North Korea in 14 years and comes just a week before he is due to meet US President Donald Trump for talks on the sidelines of the Group of 20 summit in Japan.
“Leaders of the two countries will review the development of the bilateral relationship and carry out an in-depth exchange of opinions on the development of Sino-North Korean relations in the new era, and chart the future course of development,” state news agency Xinhua reported on Tuesday.
Xi’s predecessor, Hu Jintao, went to North Korea in October 2005 on a three-day trip described as an “official goodwill” visit.
Speaking at a regular press briefing in Beijing on Tuesday, foreign ministry spokesman Lu Kang said Xi’s visit aimed to “inject new impetus” into relations in the year the two countries marked the 70th anniversary of establishing diplomatic ties, and to give stalled denuclearisation talks a much needed push.
“Regarding the progress on denuclearisation, as I said, the result of the Hanoi leaders’ meeting in February was indeed a little unexpected. But after that, everyone actually looks forward to the resumption of dialogue in a good direction,” Lu said, referring to the failed talks between Trump and North Korean leader Kim Jong-un in the Vietnamese capital four months ago.
Trump hinted at the possibility of another meeting with Kim after receiving what he called “a beautiful letter” from the North Korean leader last week. On Tuesday, South Korea’s chief nuclear negotiator, Lee Do-hoon, said the US had been in contact with the North.
Life in North Korea the ‘admiration and envy’ of others, state media says
Washington will also send US Special Representative for North Korea Stephen Biegun to South Korea next week, days after Xi’s visit to Pyongyang, to fully align its position on North Korea with its ally.
Meanwhile, Trump confirmed he would meet Xi for talks in Osaka next week, saying in a tweet on Tuesday they had “a very good telephone conversation” and would hold “an extended meeting” at the G20 summit, where they are
Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.
Analysts said the Korean peninsula had become an intense diplomatic battleground between Beijing and Washington.
Cha Du-hyeogn, a visiting research fellow at the Asan Institute for Policy Studies in Seoul, said China and the US were competing for influence over the peninsula.
“The US and China are seeking a greater sphere of influence in the region. After the Singapore summit between Trump and Kim last year, the US and North Korea are the only key players on peninsula matters. China may want to restore its influence and become a major player,” Cha said.
“But China is less likely to have a so-called strategic competition with the US – that is to say, it won’t challenge the US-led sanctions regime and its goal in achieving North Korea’s denuclearisation. In fact, it is likely to persuade Kim to come to the negotiating table for complete denuclearisation.”
Chinese tourists flood North Korea as Beijing remains Pyongyang’s key ally
Pyongyang has demanded the lifting of sanctions imposed on the regime following its nuclear and missile tests, while Beijing has said the livelihoods of North Koreans should not be affected. But Washington insists full sanctions should remain in place.
The US has also voiced scepticism about Chinese compliance with the sanctions. At a security summit in Singapore earlier this month, US acting Pentagon chief Patrick Shanahan – who on Wednesday stepped down from his role
– presented his Chinese counterpart Wei Fenghe with photographs and satellite images of North Korean ships transferring oil near China’s coast.
Analysts said Xi would seek to use the visit to boost China’s diplomatic leverage on the North Korean nuclear front, strengthening its hand in dealing with the US.
Exports from North Korea to China, which account for the bulk of its trade, plunged 87 per cent last year from 2017, and the country has faced other economic problems at a time when Kim has vowed to deliver on the economy.
A diplomatic source said China was expected to offer a large amount of humanitarian assistance, such as food and fertiliser, to North Korea, which could weaken the impact of sanctions.
China’s goal of denuclearisation on the Korean peninsula is unwavering and will not changeLu Chao, North Korean affairs expert at Liaoning Academy of Social Sciences
Communist Party mouthpiece People’s Daily on Tuesday said via its social media account that Xi would discuss economic and trade cooperation with Kim during the visit.
Quoting Zheng Jiyong, director of the Centre for Korean Studies at Fudan University in Shanghai, the newspaper said Pyongyang had taken steps to reform its economy and introduced China’s industrial manufacturing blueprint.
In September, Beijing proposed building a rail link from the city of Dandong, in China’s northeastern Liaoning province, to Pyongyang and then on to Seoul and Busan in the South, as well as a new road between Dandong and Pyongyang through Sinuiju.
Lu Chao, a North Korean affairs expert at the Liaoning Academy of Social Sciences, said large-scale economic cooperation between China and North Korea was unlikely because of the sanctions, but smaller moves were possible.
Chinese tourists flood North Korea as Beijing remains Pyongyang’s key ally
“For example, China may export daily necessities to North Korea. And if it’s needed, China is very likely to provide [food] assistance to North Korea,” Lu said. “I believe the UN sanctions on North Korea should change, because it has shown a more substantive approach to [achieving] denuclearisation.”
But analysts said Beijing remained firm on the need for Pyongyang to honour its pledges so that denuclearisation could be achieved.
“China’s goal of denuclearisation on the Korean peninsula is unwavering and will not change … China supports [North Korea] and the US continuing to hold talks,” Lu said.
Beijing also had an important part to play in the peace process, according to Boo Seung-chan, an adjunct professor at the Yonsei Institute for North Korean Studies in Seoul.
“China can have a positive role as a mediator to facilitate the peace process on the Korean peninsula,” Boo said.
Osaka summit intended to pull bilateral ties away from brinkmanship that has dragged relations to lowest point in decades
Trade war just one of the items on the agenda, analysts say, along with principles of relationship, North Korea, and Huawei
The last time the US President Donald Trump and China’s President Xi Jinping met was in Buenos Aires in December. Analysts are confident that their meeting at the G20 Summit in Osaka this month can yield a freeze in the escalation of the trade war. Photo: Reuters
When Chinese President Xi Jinping meets his US counterpart Donald Trump in Japan at the end of the month they are expected to discuss a broad range of issues, including the trade war, in an effort to stop the relationship from tilting towards sustained confrontation, analysts said.
Neither side has provided an agenda for the meeting on the sidelines of the G20 leaders summit in Osaka, despite confirmation coming from both sides that it was to take place, after weeks of speculation.
A summary of Tuesday’s phone conversation between Xi and Trump published by Xinhua, however, implied that the leaders would cover more strategic issues, leaving the nuts and bolts of a trade deal to their negotiating teams. Meanwhile, China’s foreign ministry spokesperson Lu Kang said at a regular press conference on Wednesday that the two leaders would discuss the overall direction of bilateral relations, but he did not elaborate further.
Both China and the United States have confirmed that their leaders will meet in Osaka at the end of June, at a time when US-China relations have nosedived. Photo: AP
, a former vice-minister at China’s Ministry of Commerce, predicted that Beijing would use the meeting to make clear a few principles regarding the bilateral relationship.
“It’s inevitable [for China and the US] to have problems in certain fields, but both sides should resolve the problems through dialogue on an equal footing rather than opting for a trade war, a tech war, or a financial war,” said Wei, now a vice-chair at the state-backed China Centre for International Economic Exchanges, a think tank.
He added that China would try to convince the US that it had no intention of challenging its global hegemony, but that China’s own “core interests”, including its sovereignty, territorial rights and room to develop, “must be respected”.
A government official in Beijing, who declined to be identified, said China was pinning its hopes on the leaders’ summit to ease general tensions between Beijing and Washington, even though the chances of the leaders reaching any concrete agreements in Osaka was small.
“Without a leaders’ summit, it would be difficult to push ahead the work [to reach agreements] at the ministerial or lower levels,” the source said.
Wei Jianguo, a former vice-minister at China’s Ministry of Commerce, predicted that Beijing would use the meeting to make clear a few principles regarding the bilateral relationship. Photo: Handout
The last summit between Trump and Xi in Buenos Aires in December resulted in a tariff truce and negotiations that continued until early-May. But the talks failed to achieve a deal to end the conflict, resulting in the US more than doubling tariffs on US$200 billion of Chinese imports and threatening tariffs on almost all remaining Chinese imports, valued at US$300 billion by the US government.
he was willing to exchange views with Trump on “the fundamental issues” affecting China-US relations, came at a low point in recent China-US relations.
The tariff increase followed the collapse of trade talks in early-May, while hostile rhetoric has spread into the political and military spheres. The US labelled China a “strategic competitor” and accused Beijing of conducting sustained espionage to impede US’s national security, while China blamed the US for trying to thwart China’s development by targeting Huawei and infringing on China’s sovereignty over Taiwan and Hong Kong.
Zhou Rong, a senior fellow from the Chongyang Institute for Financial Studies at the Renmin University of China, said the two leaders have a long list of issues to talk about this time in addition to trade, including Taiwan, the South China Sea, as well as the treatment of Chinese companies in the US. China can offer to help on some issues but “the US should not force China to swallow bitter fruit it cannot digest”, Zhou said.
Ni Feng, a specialist in Sino-US relations at the Chinese Academy of Social Sciences, said they would discuss the “overall direction” of their bilateral relationship, including where the two nations could engage in “competition and cooperation”.
He added that North Korea may be on the agenda because “China and the US share the same goal of the denuclearisation of the Korean peninsula.”
Another source in the Chinese government, who wished to remain anonymous, said Xi was very likely to bring up the US’ blacklisting of Huawei, China’s leading technology firm. Washington has effectively banned American companies from providing key components to the Shenzhen-based company.
Meng Wanzhou, Huawei’s chief financial officer and the daughter of founder Ren Zhengfei, is currently on bail in Canada awaiting extradition to the US to face charges that both she and Huawei violated US sanctions on Iran.
During Tuesday’s call, Xi told Trump that China “hopes the US side can treat Chinese businesses fairly”, Xinhua reported.
China’s President Xi Jinping waits for the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. Photo: AP
At the same time, Trump and Xi agreed that the two countries’ trade negotiators would start to talk again before the meeting in Japan, raising prospects for a second truce in the trade war, or even a deal to end the conflict.
Matthew Goodman, a researcher at the Centre for Strategic and International Studies in Washington, wrote in a note that a Trump-Xi deal on trade-in Osaka “is certainly possible”.
The most likely outcome is similar to the one reached in Buenos Aires in December last year, when Trump and Xi “agreed to a temporary truce while trade negotiators work to hammer out a deal”, Goodman wrote. “This would postpone the worst effects of the current escalation but is unlikely to solve the deepening and dangerous rift in US-China relations”.
The South China Morning Post previously reported that the Osaka summit meeting, which is likely to take place on Saturday June 29, could also be a sit-down dinner between Trump, Xi and their top economic and security aides, as occurred in Buenos Aires. Trump tweeted Tuesday night that he would have an “extended” meeting with Xi in Japan.
In the last half of the 20th century US worries about a rising Japan led to tariffs and technology mistrust
Differences in the Chinese experience may predict a different outcome
Toshiba was one of the companies affected by US actions to prevent the rise of Japan in a trade war that echoes in today’s tensions between the US and China. Photo: Reuters
If history is a mirror to the future, the similarities between the spiralling technology stand-off between China and the US and the economic wars waged by the US with Japan – which peaked in the 1980s and 1990s – may be instructive. But there are differences between the two which may predict a different outcome.
The US-Japan economic tensions started in the 1950s over textiles, extended to synthetic fibres and steel in the 1960s, and escalated – from the 1970s to 1990s – to colour televisions, cars and semiconductors, as Japan’s adjusted industrial policy and technology development moved it up the industrial chain.
Boosted by government support, Japan’s semiconductor industry surpassed the US as the world’s largest chip supplier in the early 1980s, causing wariness and discontent in the US over national security risks and its loss of competitiveness in core technologies.
The Reagan administration regarded Japan as the biggest economic threat to the US. Washington accused Tokyo of state-sponsored industrial policies, intellectual property theft from US companies, and of dumping products on the American market.
The US punished Japanese companies for allegedly stealing US technology and illegally selling military sensitive products to the Soviet Union. It also forced Japan to sign deals to share its semiconductor technologies and increase its purchases of US semiconductor products.
“The Trump administration is using similar tactics against China that were used against Japan in the 1980s and 1990s,” said an adviser to the Chinese government, on condition of anonymity, adding that the US was continuing its hegemony to curtail China’s tech development and was trying to mobilise its allies to follow suit.
After talks to end the US-China trade faltered last month, Huawei – a global leader in the 5G market – is now standing at centre stage of a protracted technology stand-off between Beijing and Washington, which has grown increasingly wary of the rising competitiveness of Chinese tech companies.
Zhang Monan, a researcher with the Beijing-based China Centre for International Economic Exchanges, does not foresee an easing of the rivalry between the US and China.
“The current US-China conflicts are more complicated than those between the US and Japan,” she said.
“The US will only get more intense in its containment of China and the tech rivalry won’t ease, even if China and the US could reach a deal to de-escalate the trade tensions.”
Huawei is at the centre of a technology stand-off between Beijing and Washington. Photo: AP
Back in 1982, the US justice department charged senior officials at Hitachi with conspiracy to steal confidential computer information from IBM and take it back to Japan. IBM also sued Hitachi. The two companies settled the case out of court and Hitachi paid 10 billion yen (US$92.3 million) to IBM in royalties in 1983, while accepting IBM inspections of its new software products for the next five years.
Toshiba, a major electronics producer in Japan, and Norway’s Kongsberg Vaapenfabrikk secretly sold sophisticated milling machines to the Soviet Union from 1982 to 1984, helping to make its submarines quieter and harder to detect. This transfer of sensitive military technology in the middle of an arms race between the US and the Soviet Union was not revealed until 1986.
The US issued a three-year ban on Toshiba products in 1987 and the company ran full-page advertisements in more than 90 American newspapers apologising for its actions.
In 1985, the US imposed 100 per cent tariffs on Japanese semiconductors. A year later, in its five-year semiconductor deal with the US, Japan agreed to monitor its export prices, increase imports from the US, and submit to inspections by the Office of the United States Trade Representative.
A display of chips designed by Huawei for 5G base stations on show at the China International Big Data Industry Expo. Photo: AP
This was followed by a second five-year semiconductor deal in 1991, in which Japan agreed to double the US market share in Japan to 20 per cent. In yet another bilateral semiconductor deal in 1989 Japan was required to open its semiconductor patents to the US.
Meanwhile, the US government boosted its efforts to help American businesses cement their industrial leverage in the chip sector and unveiled rules to protect its domestic chip industry.
The two countries were irreconcilable in 1996 on how to measure their respective market share. Overall market circumstances had also changed by then, with the US becoming competitive in microprocessing, and South Korea and Taiwan emerging as strong rivals to Japan.
Its dominance in semiconductors lost, Japan reached out to Europe for a range of cooperative technology deals.
Cooperate, don’t confront: academic advises Beijing on trade war tactics
“History can tell that high technology matters greatly to national security strategies. It is not a process of mere market competition. It follows the law of the jungle,” Zhang said.
The US has intensified its investment scrutiny by rolling out the Foreign Investment Risk Review Modernisation Act last year, which extends the regulation to key industrial technology sectors.
Zhang predicted the US would continue to contain China’s technological development in key sectors such as AI, aerospace, robots and nanotechnology – all of which are of great importance to Beijing.
The US has said Chinese tech giants Huawei and ZTE present a national security risk. Last April it cut US supplies to ZTE, citing violations of sanctions against Iran and North Korea. The ban was removed three months later after ZTE paid US$1.4 billion in fines.
It was a wake-up call for China to develop its own core technologies. The subsequent US ban on Huawei added to the urgency to do so, observers said.
Wang Yiwei, a professor in international relations with Renmin University, said China had to develop its own hi-tech know-how while continuing the opening up process.
“China has paid a price to learn whose globalisation it is,” he said.
“We may see some extent of disengagement with the US in technology and dual-use sectors, but China can speed up cooperation with European countries, and other countries such as Israel, to offset the risks from the US.”
In December, the US filed criminal charges against Huawei and its chief financial officer Sabrina Meng Wanzhou, alleging bank fraud, obstruction of justice and technology theft.
The squeeze continued last month with the US blacklisting Huawei, restricting its access to American hi-tech supplies and putting pressure on its allies to freeze the company out of the 5G market. So far, those allies, including Germany and Japan, have remained hesitant about meeting the US request and refrained from siding with either country.
Chinese foreign ministry spokesman Geng Shuang said on Monday that Huawei had obtained 46 commercial contracts in 30 countries as of June 6, “including some US allies and some European countries that the US has been working hard to persuade out of the contracts”.
For Zhang, the differences between Japan’s experience of US concerns of technological advancement and China’s may offer some hope for Chinese ambitions.
“Dependent on US for security protection, Japan was limited in [its ability to] push back and was already a developed country,” she said.
“But China has huge domestic market potential to address the imbalance [between] economic and technology development. This remains a big attraction to multinational companies, which would enable China to integrate into global innovation and technology cooperation, but China has to figure out how to dispel the doubts on its growth model.”
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