Archive for ‘Washington’

01/06/2020

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

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

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

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

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

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

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

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

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

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

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

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

COMPLEX RELATIONSHIP

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

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

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

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

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

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

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

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

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

Source: Reuters

31/05/2020

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Xinhua

30/05/2020

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

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

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

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

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

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

Chinese Foreign Minister Wang Yi

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: SCMP

28/05/2020

Trump offers to mediate ‘raging’ India-China border dispute

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.

Source: Reuters

24/05/2020

China and US must find ways to get along and avoid new cold war, says Foreign Minister Wang Yi

  • Countries must respect each others’ systems and be wary of US political forces who want to ‘hijack relations’, Wang tells press conference at ‘two sessions’
  • Beijing is not looking for confrontation and wants to work with Washington to fight coronavirus, minister says
Foreign Minister Wang Yi said China did not want to replace or change the US. Photo: Xinhua
Foreign Minister Wang Yi said China did not want to replace or change the US. Photo: Xinhua

China and the US should try to avoid a new cold war and find new ways to cooperate despite their differences, China’s Foreign Minister Wang Yi said on Sunday.

“We need to be alert to efforts by some political forces in America to hijack China-US relations and who try to push the two countries towards a so-called ‘new cold war’.

“This is a dangerous attempt to turn back the course of history,” Wang told a press conference on the sidelines of the annual parliamentary meetings known as the ‘two sessions’.

Ties between the two countries have further worsened due to escalating tensions over the handling of the Covid-19 pandemic.

Voices calling for decoupling have been on the rise in the US, with some arguing that the two countries are edging towards a new cold war akin to that against the Soviet Union.

Wang called for the two countries to respect each other’s political systems and to find a way to get along despite their differences.

The two nations should step up cooperation on global pandemic control, and coordinate on macro policies to deal with the economic impact.

“China has no intention of changing the United States, much less replacing it. The US should give up the wishful thinking that it can change China.”

“For the benefit of the two peoples, as well as the future and well-being of humankind, China and the US should and must find a way to coexist peacefully despite the differences in system and cultures of the two societies.”

Wang said China will not seek confrontation with the United States, but China is determined to protect its sovereignty, territorial integrity and development.

Source: SCMP
22/05/2020

China scraps annual economic growth target for first time

Workers assembling toys at the Mendiss toy factory in Shantou, in southern China's Guangdong province.Image copyright GETTY IMAGES

China will not set an economic growth goal for this year as it deals with the fallout from the coronavirus pandemic.

It is the first time Beijing has not had a gross domestic product (GDP) target since 1990 when records began.

The announcement was made by Premier Li Keqiang at the start of the country’s annual parliament meeting.

The world’s second largest economy shrank by 6.8% in the first quarter from a year ago as lockdowns paralysed businesses.

“This is because our country will face some factors that are difficult to predict in its development due to the great uncertainty regarding the Covid-19 pandemic and the world economic and trade environment,” Premier Li said.

The country’s leadership has promised to boost economic support measures amid growing concerns that rising unemployment could threaten social stability.

The move comes as tensions between Beijing and Washington are becoming increasingly strained over the coronavirus pandemic, trade and Hong Kong.

On Thursday, President Donald Trump stepped up his attacks on China, suggesting that the country’s leader, Xi Jinping, is behind a “disinformation and propaganda attack on the United States and Europe.”

It came as Mr Trump and other Republicans have escalated their criticism of Beijing’s handling of the early stages of the outbreak.

Also on Thursday, China announced plans to impose new national security legislation on Hong Kong after last year’s pro-democracy protests.

The announcement was met with a warning from Mr Trump that the US would react “very strongly” against any attempt to gain more control over the former British colony.

Separately, two US senators have proposed legislation to punish Chinese entities involved in enforcing the planned new laws and penalise banks that do business with them.

Earlier this week, the US Senate unanimously passed a proposal to delist Chinese companies from American stock exchanges if they fail to comply with US financial reporting standards.

US-listed Chinese companies have come under increasing scrutiny in recent weeks after Luckin Coffee revealed that an internal investigation found hundreds of millions of dollars of its sales last year were “fabricated”.

Source: The BBC

20/05/2020

Taiwan president rejects Beijing rule; China says ‘reunification’ inevitable

TAIPEI (Reuters) – Taiwan cannot accept becoming part of China under its “one country, two systems” offer of autonomy , President Tsai Ing-wen said on Wednesday, strongly rejecting China’s sovereignty claims and likely setting the stage for an ever worsening of ties.

China responded that “reunification” was inevitable and that it would never tolerate Taiwan’s independence.

In a speech after being sworn in for her second and final term in office, Tsai said relations between Taiwan and China had reached an historical turning point.

“Both sides have a duty to find a way to coexist over the long term and prevent the intensification of antagonism and differences,” she said.

Tsai and her Democratic Progressive Party won January’s presidential and parliamentary elections by a landslide, vowing to stand up to China, which claims Taiwan as its own and says it would be brought under Beijing’s control by force if needed.

“Here, I want to reiterate the words ‘peace, parity, democracy, and dialogue’. We will not accept the Beijing authorities’ use of ‘one country, two systems’ to downgrade Taiwan and undermine the cross-strait status quo. We stand fast by this principle,” Tsai said.

China uses the “one country, two systems” policy, which is supposed to guarantee a high degree of autonomy, to run the former British colony of Hong Kong, which returned to Chinese rule in 1997. It has offered it to Taiwan, though all major Taiwanese parties have rejected it.

China’s Taiwan Affairs Office, responding to Tsai, said Beijing would stick to “one country, two systems” – a central tenet of Chinese President Xi Jinping’s Taiwan policy – and “not leave any space for Taiwan independence separatist activities”.

“Reunification is a historical inevitability of the great rejuvenation of the Chinese nation,” it said. “We have the firm will, full confidence, and sufficient ability to defend national sovereignty and territorial integrity.”

China views Tsai as a separatist bent on formal independence for Taiwan. Tsai says Taiwan is an independent state called the Republic of China, its official name, and does not want to be part of the People’s Republic of China governed by Beijing.

TAIWAN OPEN TO DIALOGUE

China has stepped up its military drills near Taiwan since Tsai’s re-election, flying fighter jets into the island’s air space and sailing warships around Taiwan.

Tsai said Taiwan has made the greatest effort to maintain peace and stability in the narrow Taiwan Strait that separates the democratic island from its autocratic neighbour China.

“We will continue these efforts, and we are willing to engage in dialogue with China and make more concrete contributions to regional security,” she added, speaking in the garden of the old Japanese governor’s house in Taipei, in front of a socially-distanced audience of officials and diplomats.

Taiwan has become a rising source of friction between China and the United States, with the Trump administration strongly backing Taiwan even in the absence of formal diplomatic ties.

U.S. Secretary of State Mike Pompeo sent his congratulations to Tsai on Tuesday, praising her “courage and vision in leading Taiwan’s vibrant democracy”, in a rare high-level message from Washington direct to Taiwan’s government.

China’s Foreign Ministry condemned Pompeo’s remarks, and said the government would take “necessary countermeasures”, though did not elaborate.

China cut off a formal talks mechanism with Taiwan in 2016 after Tsai first won election.

Yao Chia-wen, a senior adviser to Tsai, told Reuters the chance of talks with China were small given ongoing tensions.

“We are ready to engage with them any time, but China is unlikely to make concessions to Taiwan,” he said. “In the next four years there’s little chance for the cross-strait relationship to improve.”

Source: Reuters

14/05/2020

US Navy warship transits Taiwan Strait as PLA starts live-fire drills

  • American destroyer’s mission comes a week before Taiwanese president officially starts second term in office
  • Increased military activity in the region could have unintended consequences but unlikely to lead to direct conflict, observer says
The guided-missile destroyer USS McCampbell made a transit through the Taiwan Strait on Thursday. Photo: US Navy
The guided-missile destroyer USS McCampbell made a transit through the Taiwan Strait on Thursday. Photo: US Navy

The United States sent a warship through the Taiwan Strait on Thursday as the Chinese military embarked on more than two months of live-fire naval drills off the mainland’s northern coast.

The passage by the USS McCampbell was the sixth through the strait by a US Navy vessel this year and comes a week before Taiwanese President Tsai Ing-wen, of the independence-leaning Democratic Progressive Party, is expected to be sworn in for a second term in office.

According to Taiwan’s defence ministry, the Arleigh Burke-class guided-missile destroyer transited the narrow body of water separating Taiwan from mainland China from north to south “in a routine mission”.

“It is continuing its southward voyage and the military is monitoring its movement through the intelligence it has gathered,” the ministry said.

In a statement on its Facebook page, the US Pacific Fleet said the McCampbell transited the Taiwan Strait as part of ongoing operations in the Indo-Pacific.

Analysts said the passage was a response to the People’s Liberation Army’s increasing military activity near Taiwan and in the wider region.

“This will become a new routine as a kind of US security commitment to maintain stability in the Indo-Pacific region,” said Soong Hseik-wen, professor of strategic studies and international relations at National Chung Cheng University in Taiwan.

Beijing urges France to cancel contract to sell arms to Taiwan

13 May 2020

The PLA has staged a series of war games, including fly-bys and warship transits through the strait, in recent months in response to what Beijing sees as growing pro-independence moves by the Tsai government and her party. China has also warned the US against supplying weapons to the island, which Beijing considers to be a wayward province that must return to the mainland fold, by force if necessary.

Mainland China has suspended official exchanges with Taiwan since Tsai was first elected president in 2016 and refused to accept the one-China policy, which Beijing says must be the foundation for any talks.

The PLA has embarked on 11 weeks of naval exercises off the coast of Tangshan in northern China, barring all other vessels from a 25km (15 mile) radius of the drill area, according to the China Maritime Safety Administration.

Taiwanese support closer ties with US over China, few identify as solely Chinese, Pew Research survey finds

13 May 2020

Both Beijing and Washington have ramped up military activities near Taiwan in recent months during the coronavirus pandemic, moves that some observers say run the risk of miscommunication.

Alexander Huang Chieh-cheng, professor of strategic studies and international relations at Tamkang University in Taipei, said no one could exclude the possibility of unintended incidents when both the US and the mainland were stepping up their presence in the region.

“Rational analysts would however argue that the two nuclear powers are not likely to engage in or escalate to direct military conflict,” he said.

Huang said he believed cross-strait relations would worsen during Tsai’s second term in office, which begins on May 20.

“The already damaged relationship between Taiwan and mainland China has worsened since the pandemic mainly due to travel bans and Taiwan’s increased international visibility,” he said.

On Tuesday, Japan’s Kyodo News reported that the PLA was planning a large-scale beach landing exercise near Hainan province in August, simulating a takeover of the Pratas Islands, which are controlled by Taiwan and also known as the Dongsha Islands.

In Taipei, Major General Lin Wen-huang said Taiwan was monitoring the PLA movements and “has contingency plans in place for the South China Sea to strengthen combat readiness and defence preparedness on both the Spratly and Pratas islands”.

Taiwan’s coastguard also announced on Wednesday that its Pratas Islands Garrison was scheduled to conduct an annual live-fire exercise in June to ensure the “effectiveness of various mortar and machine-gun positions”.

Taiwan shows off its military power after presidential election
Shanghai-based military commentator Ni Lexiong said that both the US Navy and PLA were increasing activities during the pandemic because neither side could afford to show weaknesses that the other might take advantage of.
The destroyer’s passage and the PLA’s drills were all part of such efforts, Li said.

But he agreed that both countries were unwilling, unable, and unlikely to have a real conflict.

“They are both bluffing. It’s a fake crisis,” he said. “A pandemic always ends or prevents a war if you look at history.

“I also don’t believe the PLA would want to take over the Dongsha or Taiping islands [in the South China Sea], because these islets alone are not worth a military campaign and all the consequences of that. The only target valuable enough for the PLA is Taiwan.”

Source: SCMP

07/05/2020

Trump says coronavirus worse ‘attack’ than Pearl Harbor

US President Donald Trump has described the coronavirus pandemic as the “worst attack” ever on the United States, pointing the finger at China.

Mr Trump said the outbreak had hit the US harder than the Japanese bombing of Pearl Harbor in World War Two, or the 9/11 attacks two decades ago.

His administration is weighing punitive actions against China over its early handling of the global emergency.

Beijing says the US wants to distract from its own response to the pandemic.

Since emerging in the Chinese city of Wuhan in December, the coronavirus is confirmed to have infected 1.2 million Americans, killing more than 73,000.

What did President Trump say?

Speaking to reporters in the Oval Office of the White House on Wednesday, Mr Trump said: “We went through the worst attack we’ve ever had on our country, this is worst attack we’ve ever had.

“This is worse than Pearl Harbor, this is worse than the World Trade Center. There’s never been an attack like this.

“And it should have never happened. Could’ve been stopped at the source. Could’ve been stopped in China. It should’ve been stopped right at the source. And it wasn’t.”

Media caption Life for asylum seekers in lockdown on the US-Mexico border

Asked later by a reporter if he saw the pandemic as an actual act of war, Mr Trump indicated the outbreak was America’s foe, rather than China.

“I view the invisible enemy [coronavirus] as a war,” he said. “I don’t like how it got here, because it could have been stopped, but no, I view the invisible enemy like a war.”

Media caption US shopping centres re-open: ‘This is the best day ever’

Who else in Trump’s team is criticising China?

The deepening rift between Washington and Beijing was further underscored on Wednesday as Secretary of State Mike Pompeo renewed his rhetoric against China, accusing it of covering up the outbreak.

He stuck by his so far unsubstantiated charge that there is “enormous evidence” the coronavirus hatched in a Chinese laboratory, even while acknowledging there is still uncertainty about its origins.

“Those statements are both true,” America’s top diplomat told the BBC. “We don’t have certainty and there is significant evidence that it came from a lab.”

Chinese state media accused him of lying.

One of the most trusted US public health experts has said the best evidence indicates the virus was not made in a lab.

Dr Anthony Fauci, a member of Mr Trump’s coronavirus task force, said on Monday the illness appeared to have “evolved in nature and then jumped species”.

Why is the US blaming China?

President Trump faces a tough re-election campaign in November, but the once humming US economy – which had been his main selling point – is currently in a coronavirus-induced coma.

A Pew opinion survey last month found that two-thirds of Americans, a historic high, view China unfavourably. But roughly the same margin of poll respondents said they believed Mr Trump acted too slowly to contain the pandemic.

As Mr Trump found his management of the crisis under scrutiny, he began labelling the outbreak “the China virus”, but dropped that term last month days before speaking by phone with Chinese President Xi Jinping.

Both Mr Trump and his likely Democratic challenger, Joe Biden, appear to be fastening on to China’s unpopularity as an election issue, with each accusing the other of being a patsy for America’s primary economic competitor.

As the coronavirus began spreading in the US back in January, Mr Trump signed phase one of a trade deal with China that called a truce in their tariff war. The US president’s hopes of sealing a more comprehensive phase two deal are now in limbo because of the pandemic.

graph showing deaths and cases in the US

Source: The BBC

03/05/2020

China’s military budget will still rise despite coronavirus, experts predict

  • Defence spending could show the effect of economic headwinds but is still expected to increase
  • PLA’s modernisation and strategic priorities demand spending is maintained even after GDP’s first contraction since records began, observers say
China has made modernising its military and expanding its weaponry a priority. Photo: Xinhua
China has made modernising its military and expanding its weaponry a priority. Photo: Xinhua
China’s upcoming defence budget will be only slightly hit by the economic downturn that followed the coronavirus outbreak, and a modest increase is still expected as it continues to develop its military capability, analysts said.
The government’s military budget is expected to be revealed, as is the norm, at this year’s session of the National People’s Congress (NPC), China’s legislative body. Delayed by over two months because of the pandemic, it will finally be convened on May 22.
Last year the defence expenditure announced at the NPC session was 

China has said its military expenditure has always been kept below 2 per cent of its GDP over the past 30 years, although its official figures have long been described by Western observers as opaque, with significant omissions of important items.

The South China Sea dispute explained
In a report earlier this week, the Stockholm International Peace Research Institute estimated that China’s actual military spending in 2019 was US$261 billion, the world’s second highest, after the United States’ US$732 billion.

John Lee, adjunct professor at the University of Sydney and senior fellow at the Hudson Institute in Washington, estimated that this year the Chinese defence budget would remain roughly the same or increase modestly, in line with growth levels of recent years.

“In the current environment, Beijing is keen to emphasise that China has recovered substantially from Covid-19 and that its power trajectory is unaffected by recent events,” Lee said. “At the same time, it would be aware of the anger towards the Communist Party for allowing the virus to become a pandemic.

“Regardless of what the reality might be, I would be surprised if there were a dramatic increase or a significant cut.”

First made-in-China aircraft carrier, the Shandong, enters service
China’s GDP suffered a 6.8 per cent decline in the first quarter, the first contraction since quarterly records began in 1992, after an extensive shutdown while it contained its coronavirus outbreak. However, the official increases in the military budget have since 2011 always exceeded overall GDP growth.

The Chinese government may focus more on job creation, social welfare and poverty alleviation, but not at the expense of military investment, according to Collin Koh, research fellow from the S Rajaratnam School of International Studies at Singapore’s Nanyang Technological University in Singapore.

“I tend to think it will be more or less the same,” Koh said. “To reduce [the budget] may send the wrong signal to would-be adversaries, both domestic and external: that Beijing has lost the will to keep up its military modernisation to assert core national interests.”

PLA flexes military muscle near Taiwan ‘in show of Covid-19 control’

15 Apr 2020

The People’s Liberation Army (PLA) began a massive – and costly – reform in 2015, with a personnel reshuffle, change in structure, upgraded equipment and enhanced training to better resemble battle scenarios. That was supposed to be complete this year.

Given the deteriorating relationship with the United States and rising tensions in the Taiwan Strait and South China Sea, the PLA faces challenges requiring a steady increase in investment, according to Hong Kong-based military commentator Song Zhongping.

Taiwan shows off its military power after presidential election
Macau-based military expert Antony Wong Dong predicted there would still be about 6-7 per cent growth in the budget “no matter what”.
“The PLA played an important role in the fight against the contagion, so a decrease in spending would not be accepted,” Wong said.
That role included the deployment of more than 4,000 military medics to help treat Covid-19 patients, and helping to transport medical supplies.
Wong said it would be a crucial year for the PLA in completing its preparation for potential military action against Taiwan, which would be so strategically important that “[President] Xi Jinping himself would never allow it to be affected by a shortage of funding”.
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18 Apr 2020

But a slight increase in budget would be sufficient to meet defence needs and maintain a deterrence against potential threats, including preventing self-ruled Taiwan taking the opportunity to declare independence, naval expert Li Jie said.

Beijing views Taiwan as a breakaway province to be reunified with the mainland, by force if necessary. Its relationship with Taipei has been strained, and dialogue halted, since Tsai Ing-wen, of the pro-independence Democratic Progressive Party, was elected the island’s president in 2016. Tsai was re-elected for a second term in January.

Li estimated that the budget would probably be kept at the same level or show a “slight” increase from last year.

“It would feed the ‘China threat’ theory and raise international concerns if the Chinese government expands military spending too much,” he said.

Source: SCMP

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