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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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
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
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.”
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.
Image copyright PRESS INFORMATION BUREAUImage 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.
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.
Image copyright AFPImage caption There have been protests in Nepal against Indi’s new road link
“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.
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.
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.
Image copyright GETTY IMAGESImage 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.
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.”
WASHINGTON/NEW DELHI (Reuters) – U.S. President Donald Trump said on Wednesday he had offered to mediate a standoff between India and China at the Himalayan border, where soldiers camped out in a high-altitude region have accused each other of trespassing over the disputed border.
“We have informed both India and China that the United States is ready, willing and able to mediate or arbitrate their now raging border dispute,” Trump said in a Twitter post.
The standoff was triggered by India’s construction of roads and air strips in the region as it competes with China’s spreading Belt and Road initiative, involving infrastructure development and investment in dozens of countries, Indian observers said on Tuesday.
Both were digging defences and Chinese trucks have been moving equipment into the area, the officials said, raising concerns about an extended standoff.
There was no immediate response from either India or China to Trump’s offer. Both countries have traditionally opposed any outside involvement in their matters and are unlikely to accept any U.S. mediation, experts said.
China’s ambassador to India, Sun Weidong, struck a conciliatory note, saying the two Asian countries should not let their differences overshadow the broader bilateral relationship.
“We should adhere to the basic judgment that China and India are each other’s opportunities and pose no threat to each other. We need to see each other’s development in a correct way and enhance strategic mutual trust,” he said, speaking in a webinar on China’s experience of fighting COVID-19.
“We should correctly view our differences and never let the differences shadow the overall situation of bilateral cooperation.”
The two countries are engaged in talks to defuse the border crisis, an Indian government source said. “These things take time, but efforts are on at various levels, military commanders as well as diplomats,” the source said.
The Chinese side has been insisting that India stop construction near the Line of Actual Control or the de facto border. India says all the work is being done on its side of the border and that China must pull back its troops.
Trump in January offered to “help” in another Himalayan trouble spot, the disputed region of Kashmir that is at the center of a decades-long quarrel between India and Pakistan.
But the U.S. offer triggered a political storm in India, which has long bristled at any suggestion of third-party involvement in tackling Kashmir which it considers an integral part of the country.
NEW DELHI/SRINAGAR (Reuters) – A Himalayan border standoff between old foes India and China was triggered by India’s construction of roads and air strips in the region as it competes with China’s spreading Belt and Road initiative, Indian observers said on Tuesday.
Soldiers from both sides have been camped out in the Galwan Valley in the high-altitude Ladakh region, accusing each other of trespassing over the disputed border, the trigger of a brief but bloody war in 1962.
About 80 to 100 tents have sprung up on the Chinese side and about 60 on the Indian side where soldiers are billeted, Indian officials briefed on the matter in New Delhi and in Ladakh’s capital, Leh, said.
Both were digging defences and Chinese trucks have been moving equipment into the area, the officials said, raising concerns of a long faceoff.
“China is committed to safeguarding the security of its national territorial sovereignty, as well as safeguarding peace and stability in the China-India border areas,” the Chinese Foreign Ministry spokesperson’s office said in a statement.
“At present, the overall situation in the border areas is stable and controllable. There are sound mechanisms and channels of communication for border-related affairs, and the two sides are capable of properly resolving relevant issues through dialogue and consultation.”
There was no immediate Indian foreign ministry comment. It said last week Chinese troops had hindered regular Indian patrols along the Line of Actual Control (LAC).
But interviews with former Indian military officials and diplomats suggest the trigger for the flare-up is India’s construction of roads and air strips.
“Today, with our infrastructure reach slowly extending into areas along the LAC, the Chinese threat perception is raised,” said former Indian foreign secretary Nirupama Rao.
“Xi Jinping’s China is the proponent of a hard line on all matters of territory, sovereignty. India is no less when it comes to these matters either,” she said.
After years of neglect Prime Minister Narendra Modi’s government has pushed for improving connectivity and by 2022, 66 key roads along the Chinese border will have been built.
One of these roads is near the Galwan valley that connects to Daulat Beg Oldi air base, which was inaugurated last October.
“The road is very important because it runs parallel to the LAC and is linked at various points with the major supply bases inland,” said Shyam Saran, another former Indian foreign secretary.
“It remains within our side of the LAC. It is construction along this new alignment which appears to have been challenged by the Chinese.”
China’s Belt and Road is a string of ports, railways, roads and bridges connecting China to Europe via central and southern Asia and involving Pakistan, China’s close ally and India’s long-time foe.
Hardline politicians want president to fulfil promise to overhaul constitution to reflect the self-ruled island’s political reality
A petition calls for two referendums on the issue – proposing it either be replaced with a new one or revised
The push for constitutional change could lead to a cross-strait conflict. Photo: Handout
Taiwanese President Tsai Ing-wen is under growing pressure from the hardline camp to push for constitutional change to reflect the self-ruled island’s independent status – something observers say could provoke a cross-strait conflict.
With Tsai due to be sworn in for a second four-year term next month after a landslide victory in January’s election, hardline pro-independence politicians want her to fulfil a 2015 campaign promise: to overhaul the constitution so that it reflects Taiwan’s political reality. The process has been stalled since Tsai’s first term, which began in 2016.
Leading the charge is the Taiwan New Constitution Foundation, a group formed last year by a Tsai adviser and long-time independence advocate Koo Kwang-ming.
The foundation launched a petition at the end of March calling for two referendums on the constitution – proposing that it either be replaced with a new one or revised.
The existing constitution was adopted when Kuomintang leader Chiang Kai-shek and the KMT fled to Taiwan and set up an interim government in 1949 following their defeat by Mao Zedong’s communists in mainland China.
Drawn up in 1947, the constitution still puts the mainland and Mongolia under the Republic of China jurisdiction – Taiwan’s official name for itself. In reality, its jurisdiction extends only to Taiwan and its outlying islands of Penghu, Matsu and Quemoy, which is also known as Kinmen.
Taiwan’s constitution was adopted when KMT leader Chiang Kai-shek fled to the island in 1949. Photo: Handout
“We have garnered more than 3,000 signatures from the public for the first phase of initiating the proposals to hold two referendums asking the president to push for constitutional change,” Lin Yi-cheng, executive director of the Taiwan New Constitution Foundation, said on Wednesday.
He said they would propose that voters be asked two questions in the referendums: “Do you support the president in initiating a constitutional reform process for the country?”
And: “Do you support the president in pushing for the establishment of a new constitution reflecting the reality of Taiwan?”
“We’re ready to send the two referendum proposals to the Central Election Commission on Thursday,” he said.
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Under Taiwan’s Referendum Act, the process for holding a referendum involves three stages: a proposal, endorsement and voting.
Lin said there should be no problem for the commission to approve the proposal stage since they had gathered far more than the minimum 1,931 signatures needed under the act.
The endorsement stage requires a minimum of 290,000 signatures, and if the referendum is held, they will need at least 5 million votes.
Lin said if the process went smoothly, he expected a referendum could be held in August next year, allowing time for review and making the necessary arrangements.
He said if the referendum questions got enough public support, Tsai would need to deal with the issue.
Tsai Ing-wen visits a military base in Tainan earlier this month. The pressure for constitutional change creates a dilemma for the president. Photo: AFP
Tsai’s Democratic Progressive Party government has been tight-lipped over the constitutional change issue, which Beijing sees as a move for the island to declare formal independence from the mainland.
Beijing considers Taiwan a wayward province that must be returned to the mainland fold, by force if necessary, and it has warned Tsai against declaring formal independence.
A DPP official said the foundation’s push would put Tsai in a difficult position.
“If she ignores the referendums, she will come under constant pressure from the hardline camp, and if she seriously considers taking action and instituting a new Taiwan constitution, she will risk a confrontation with Beijing, the consequence of which could be a cross-strait conflict,” said the official, who requested anonymity.
On Tuesday, Zhu Fenglian, a spokeswoman for the mainland’s Taiwan Affairs Office, warned the island against holding any referendum on constitutional revision, saying it would be doomed to end in an impasse and would ultimately fail.
“It will only push Taiwan towards an extremely dangerous abyss and bring disasters to Taiwanese compatriots,” she said.
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2 Apr 2020
But according to Wang Kung-yi, a political science professor at Chinese Culture University in Taipei, Tsai should not be too worried about the hardline camp move.
“The hardline camp has been marginalised greatly in the past several years as reflected by the poor showing in the legislative elections in January,” Wang said, adding that he expected Tsai to continue her relatively moderate cross-strait policy of not sharply provoking the mainland.
But trade with partner countries might not be as badly affected as with countries elsewhere in the world, observers say
China’s trade with belt and road countries rose by 3.2 per cent in the January-March period, but second-quarter results will depend on how well they manage to contain the pathogen, academic says
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
The coronavirus pandemic is set to cause a slump in Chinese investment in its signature
and a dip in trade with partner countries that could take a year to overcome, analysts say.
But the impact of the health crisis on China’s economic relations with nations involved in the ambitious infrastructure development programme might not be as great as on those that are not.
China’s total foreign trade in the first quarter of 2020 fell by 6.4 per cent year on year, according to official figures from Beijing.
Trade with the United States, Europe and Japan all dropped in the period, by 18.3, 10.4 and 8.1 per cent, respectively, the commerce ministry said.
By comparison, China’s trade with belt and road countries increased by 3.2 per cent in the first quarter, although the growth figure was lower than the 10.8 per cent reported for the whole of 2019.
China’s trade with 56 belt and road countries – located across Africa, Asia, Europe and South America – accounts for about 30 per cent of its total annual volume, according to the commerce ministry.
Despite the first-quarter growth, Tong Jiadong, a professor of international trade at Nankai University in Tianjin, said he expected China’s trade with belt and road countries to fall by between 2 and 5 per cent this year.
His predictions are less gloomy than the 13 to 32 per cent contraction in global trade forecast for this year by the World Trade Organisation.
“A drop in [China’s total] first-quarter trade was inevitable but it slowly started to recover as it resumed production, especially with Southeast Asian, Eastern European and Arab countries,” Tong said.
“The second quarter will really depend on how the epidemic is contained in belt and road countries.”
Nick Marro, Hong Kong-based head of global trade at the Economist Intelligence Unit, said he expected China’s total overseas direct investment to fall by about 30 per cent this year, which would be bad news for the belt and road plan.
“This will derive from a combination of growing domestic stress in China, enhanced regulatory scrutiny over Chinese investment in major international markets, and weakened global economic prospects that will naturally depress investment demand,” he said.
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed, while infrastructure projects in Bangladesh, including the Payra coal-fired power plant, have been put on hold.
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
Marro said the reduction of capital and labour from China might complicate other projects for key belt and road partner, like Pakistan, which is home to infrastructure projects worth tens of billions of US dollars, and funded and built in large part by China.
“Pakistan looks concerning, particularly in terms of how we’ve assessed its sovereign and currency risk,” Marro said.
“Public debt is high compared to other emerging markets, while the coronavirus will push the budget deficit to expand to 10 per cent of GDP [gross domestic product] this year.”
Last week, Pakistan asked China for a 10-year extension to the repayment period on US$30 billion worth of loans used to fund the development of infrastructure projects, according to a report by local newspaper Dawn.
China’s overseas investment has been falling steadily from its peak in 2016, mostly as a result of Beijing’s curbs on capital outflows.
Last year, the direct investment by Chinese companies and organisations other than banks in belt and road countries fell 3.8 per cent from 2018 to US$15 billion, with most of the money going to South and Southeast Asian countries, including Singapore, Vietnam, Indonesia and Pakistan.
Tong said the pandemic had made Chinese investors nervous about putting their money in countries where disease control measures were becoming increasingly stringent, but added that the pause in activity would give all parties time to regroup.
“Investment in the second quarter will decline and allow time for the questions to be answered,” he said.
“Past experience along the belt and road has taught many lessons to both China and its partners, and forced them to think calmly about their own interests. The epidemic provides both parties with a good time for this.”
Dr Frans-Paul van der Putten, a senior research fellow at Clingendael Institute in the Netherlands, said China’s post-pandemic strategy for the belt and road in Europe
might include a shift away from investing in high-profile infrastructure projects like ports and airports.
Investors might instead cooperate with transport and logistics providers rather than invest directly, he said.
“Even though in the coming years the amount of money China loans and invests abroad may be lower than in the peak years around 2015-16, I expect it to maintain the belt and road plan as its overall strategic framework for its foreign economic relations,” he said.
visited the industrial powerhouse of Zhejiang province on Sunday in a move state media described as a clear message the country was ready to get the economy back on track amid the “new normal” of dealing with the coronavirus.
The trip, to Ningbo – one of the world’s busiest ports and a trade hub for eastern China – was Xi’s first outside Beijing since he visited Wuhan, the initial epicentre of the Covid-19 outbreak, earlier in the month.
As well as a visiting the port, he spoke to workers at an industrial zone for car part manufacturers, where he learned about the latest efforts to restart production, Xinhua said in a brief report.
The visit came after two months of almost total lockdown in many parts of the country that disrupted businesses, transport and people’s daily lives, and ground the economy to a near standstill.
While local transmissions of the coronavirus in China appear to be under control, Beijing has implemented strict measures to prevent imported cases, including slashing international flights and banning most foreigners from entering the country.
In a separate report, Xinhua said Xi’s visit sent “a clear message” that China was resuming its industrial production and social activities, and described the fight against the coronavirus as the “new normal”.
Reviving the economy and battling a deadly disease were Xi’s “two tough battles”, it said.
Xi’s choice of destination was a clear message that restarting the economy is a top priority. Photo: Xinhua
Zhejiang is something of a power base for Xi, who spent nearly five years there during his climb through the ranks of the Communist Party.
One of the country’s biggest trading hubs, the province generated 3 trillion yuan (US$423.2 billion) in foreign trade last year, or more than 13 per cent of the national total, according to official figures.
“It’s a highly export-oriented economy … which has made it crucial not only to China’s development plan but also to safeguarding the stability of the global supply chain,” Xinhua said.
Observers said Xi’s visit was evidence of Beijing’s determination to get the economy back up and running as soon as possible.
Zhao Xijun, an economics professor at Renmin University, said Ningbo was a key part of the export economy and a base for many local and foreign entrepreneurs.
“It is a clear signal that China, after getting domestic infections under control, is now prioritising economic growth,” he said.
“It also shows the country will keep developing its economy and opening up its markets.”
But hopes of a quick recovery for the Chinese economy have been dashed by the spread of the coronavirus across Europe and the United States, causing a sharp decline in demand for Chinese goods.
Xi spent five years in Zhejiang while climbing the ranks of the Communist Party. Photo: Xinhua
In a meeting on Friday, the Communist Party’s Politburo said it would step up macroeconomic policy adjustments and pursue a more proactive fiscal policy while optimising measures to control the coronavirus to speed up the restoration of production, doing whatever it could to “minimise the losses caused by the epidemic”.
“China has successfully reopened much of its economy from the extremes of the coronavirus lockdown, but now faces a new problem: an impending collapse in demand for its exports as its customers go into lockdowns of their own,” Gavekal Dragnomics said in a research report.
“That shock to industry and manufacturing employment means that China will not enjoy the hoped-for V-shaped recovery in growth.”
He is expected to join a trilateral dialogue with his counterparts from Pakistan and Afghanistan, and observers say he may try to mediate in Kashmir dispute
Trip also includes a stop in Nepal that could pave way for a visit by Xi Jinping
Chinese Foreign Minister Wang Yi may try to act as a negotiator in the Kashmir dispute. Photo: EPA-EFE
Chinese Foreign Minister Wang Yi began a four-day trip to Pakistan and Nepal on Saturday, amid escalating tensions between Islamabad and New Delhi over
Wang was expected to join a trilateral dialogue with the foreign ministers of Pakistan and Afghanistan in Islamabad, foreign ministry spokesman Geng Shuang said on Friday. He will also travel to Nepal.
Beijing has criticised India’s decision last month to strip the Jammu and Kashmir autonomous state of its special status and break it into two federally controlled territories, calling it “unacceptable”.
China also formally backed Pakistan’s request for the United Nations Security Council to hold “closed consultations” on the revocation of the state’s autonomy.
Meanwhile, observers say the Chinese foreign minister could attempt to act as a negotiator in the complex border dispute.
“Wang might try to play a role to mediate between the two sides to resolve the crisis,” said Wang Dehua, head of the Institute for South and Central Asia Studies at the Shanghai Municipal Centre for International Studies. “This has been China’s long-held position on the issue.”
Pang Zhongying, an international relations researcher at Ocean University of China in Qingdao, agreed.
“[Indian Prime Minister] Narendra Modi has visited China a couple of times and it is likely [Chinese President] Xi Jinping will visit India soon,” he said. “If Xi is to visit India later this year, China may try to contain its differing views with India on Kashmir.”
Modi has proposed an informal summit with Xi later this year that may be held in the religious hub of Varanasi, Modi’s parliamentary constituency. New Delhi said in May that Indian officials were working with the Chinese side to finalise the details, but Beijing has yet to confirm Xi’s visit.
India dismisses Beijing’s concerns over Kashmir because ‘it won’t have any impact on China’
Wang Yi was also due to visit India later this month for border talks, but the trip had to be postponed at the request of New Delhi because of scheduling problems, Hindustan Times reported, citing China’s foreign ministry.
The row over Kashmir has escalated in the past month. Pakistani Prime Minister Imran Khan said on Friday that Islamabad would make the fullest possible response to New Delhi’s actions in disputed Kashmir and that the global community would be responsible for any “catastrophic” aftermath.
Since Modi withdrew special rights for Indian-administered Kashmir on August 5, India has flooded the Kashmir valley with troops, restricted the movements of residents and cut off communication.
Both India and Pakistan claim the whole of Kashmir, which was partitioned between the two following the end of British rule in 1948, and they have subsequently fought wars over the territory.
China has its own territorial dispute with India over the part of Kashmir it controls. In early August, Chinese foreign ministry spokeswoman Hua Chunying
and said it was not binding. Beijing later appeared to soften its rhetoric, with Hua calling for a solution through dialogue and negotiation, without criticising either side.
The Chinese foreign minister will also visit Nepal, where he is expected to meet his counterpart, the president and prime minister. The trip could pave the way for an expected visit by Xi to Nepal.
CHINDIA ALERT: You'll be living in their world, very soon 