China and Canada in a tit-for-tat over diplomatic privilege; Capvision office raided
The 'Eye on China' newsletter features this week's most important developments on India-China relations, Chinese Domestic Politics and Foreign Policy, Economy and Tech, and the military!
Section A: India-China Relations
- Anushka Saxena
To begin with, this week, on 11 May, China yet again exercised its veto power in the United Nations Security Council to put on technical hold a proposal by India to designate Rauf Azhar, a senior leader of the Pakistani terror outfit ‘Jaish-e-Mohammed’ (JeM), as a global terrorist under the UNSC’s 1267 ISIL and Al Qaeda Sanctions Lists.
Rauf Azhar is the brother of JeM Chief Masood Azhar, and was sanctioned by the US in December 2010.
Brother of JeM chief Masood Azhar, Abdul Rauf, born in 1974 in Pakistan, has been involved in planning and executing numerous terror strikes in India including the hijacking of Indian Airlines aircraft IC814 in 1999, the attack on the Parliament in 2001 and the targeting of the IAF base in Pathankot in 2016.
In August last year, China, a permanent, veto-wielding member of the UN Security Council, had put a hold on the proposal by India and the US to designate Rauf Azhar as a global terrorist and subject him to assets freeze, travel ban and arms embargo.
Beijing, an all-weather friend of Islamabad, had last year put holds on proposals to blacklist Pakistan-based terrorists Hafiz Talah Saeed, Lashkar-e-Taiba leader Shahid Mahmood and Lashkar-e-Tayyiba terrorist Sajid Mir under the Al Qaeda Sanctions regime.
China has time and again yielded its veto power in the UNSC to block India’s efforts to cooperate on counter-terrorism and curbing illicit terror financing.
A small victory for India in this regard has come just a few months ago in January 2023, when Abdul Rehman Makki, deputy-Chief of the Pakistan-based terror group Lashkar-e-Taiba (LeT), was finally designated a global terrorist under the UN sanctions list.
China agreed to lift its hold on the joint India-US proposal to blacklist him almost 7 months after it first vetoed this proposal in June 2022.
Recently, at the SCO Defense Ministers meet that took place on 28 April, 2023, Rajnath Singh, India’s defense minister, highlighted India’s ambitious anti-terrorism agenda, remarking:
“If a nation shelters terrorists, it not only poses a threat to others, but for itself too. Radicalisation of youth is a cause of concern not only from the point of view of security, but it is also a major obstacle in the path of socio-economic progress of society. If we want to make the SCO a stronger & more credible international organisation, our top-most priority should be to effectively deal with terrorism.”
For interested readers, we have covered the highlights of this SCO meet extensively in the 30th April edition of ‘Eye on China’.
Next, on 9 May, a new port in Myanmar, built with assistance from New Delhi, has begun to receive container ships as both India and China seek closer economic ties with the Southeast Asian country.
The first cargo vessel from the Indian metropolis of Kolkata arrived Tuesday at Sittwe Port in Myanmar’s Rakhine state. Officials from India and Myanmar’s military government attended the port’s inauguration ceremony.
India was represented by Union Minister of Ports, Shipping & Waterways and Ayush, Sarbananda Sonowal.
Speaking on the occasion, Sonowal said that the Sittwe port development is part of the Kaladan Multimodal Transit Transport Project (KMTTP), which will enable multi-modal transit connectivity with South East Asia.
According to the Ministry of Ports, Shipping and Waterways, this route will serve as a bridge between the South Asia and South East Asia regions.
The Sittwe port has been developed under a framework agreement between India and Myanmar for the construction and operation of a Multimodal Transit Transport Facility on the Kaladan River connecting the Sittwe port in Myanmar with the state of Mizoram in India. Once operationalized, the port will benefit not only Northeast India, but also Bangladesh, Bhutan and Nepal.
The opening of the Sittwe port will immensely benefit Tripura by way of a significant reduction in transportation time and logistics cost. This development is expected to not only help the economies of India and Myanmar but also benefit the environment by reducing traffic on the road and the use of marine transport, which will considerably bring down [the] environmental costs of transport with a drop in fossil fuel carbon emission.
This development has come at the heels of a meeting between Chinese Foreign Minister Qin Gang and the leader of the Burmese military junta, Min Aung-Hlaing, on 2 May 2023. During the meeting, Qin Gang assured Hlaing that “China will continue to provide assistance within its capability for Myanmar's development, accelerate key cooperation projects of the China-Myanmar Economic Corridor, and carry out projects on agriculture, education and health care, among others, for the benefit of Myanmar people.”
In this light, India’s concerns surrounding expanding Chinese economic influence over Myanmar, and the rapid development of the China-Myanmar Economic Corridor, which can have negative impacts for peace and stability in the insurgency-prone northeastern states bordering Myanmar, can be assuaged by India’s Sittawe port partnership with Myanmar.
In the past, India has also expressed concerns to Myanmar surrounding the presence of a Chinese “listening post” on the Great Cocos Island in April, and even though Burmese officials have responded to India’s claims as being “absurd,” India may have more to lose from deteriorating relations with Myanmar. For interested readers, we have covered this subject extensively in the 9th April edition of ‘Eye on China’.
Finally, SCMP published an interesting report titled ‘Xiaomi’s India challenges mount with plunging sales and frozen assets amid rising geopolitical tensions with China’.
The report highlights:
After a 41 per cent plunge in its smartphone shipments in India last quarter, Xiaomi continues to face hurdles in what has become one of its biggest markets outside China amid geopolitical tensions that have resulted in heightened scrutiny of Chinese technology firms.
Once the top smartphone brand in India for five straight years, Xiaomi ranked fourth in the first quarter with shipments of 5 million handsets, making up 16.4 per cent of the market, according to the latest figures from IDC last week.
That was down from 8.5 million units in the same period last year, when the Beijing-based smartphone giant was still the No 1 player in the market.
“The shipment decline of Xiaomi was mainly because the vendor was focusing on clearing its inventory amid weak consumer demand locally,” said Will Wong, an analyst at IDC. “Nevertheless, this is a good move as this short-term, painful plan is expected to bring a more resilient structure, especially since profitability and cash are crucial in the uncertain environment.”
Xiaomi’s struggles come in part from sinking smartphone sales in general, both globally and in India, as consumers hold onto devices longer. In India, smartphone shipments fell 16 per cent in the first three months of the year to 31 million units. Samsung led the quarter with 6.2 million units, followed by Chinese brands Vivo and Oppo.
However, Xiaomi has been hit especially hard by deteriorating relations between the world’s two most populous countries.
This update has come at the heels of an Indian high court decision from late April, wherein the court rejected a bid to overturn the seizure of US$676 million from Xiaomi amid sour India-China tech relations.
Another SCMP report adds on this: The funds were seized in April 2022 after India’s federal financial crime agency, the Enforcement Directorate (ED), said an investigation had uncovered years of suspicious remittance payments made by Xiaomi India to three foreign-based entities.
At the time, ED said that Xiaomi India had not provided sufficient information on what goods or services had been exchanged for the payments. The agency alleged Xiaomi had hidden the payments “under the guise of royalties” in a violation of India’s Foreign Exchange Management Act.
To read more on developments concerning India-China relations, please refer to China’s decision to hike the fee for Kailash Mansarovar yatra has angered Indian tourists who may have to pay more than a lakh rupees for it.
Section B: Economy and Tech
- Amit Kumar
Chinese authorities raid Shanghai-based domestic consultancy firm Capvision
Last week, China’s national security authorities raided the Shangai, Beijing, Suzhou, and Shenzhen offices of a domestic consultancy firm, Capvision. The consultancy which has its HQ in Shanghai works as an intermediary that connects an extensive network of experts - legal, defence, technology, and trade - based in China to its clients who mostly happen to be foreigners. The number of experts that Capvision employs for consultancy runs into lakhs (~3 lakhs).
The Chinese authorities have accused and charged both the firm and several of its experts for having passed on sensitive and critical information relating to national security and engaging in espionage at the behest of overseas firms. Officials accused and imprisoned by the authorities have admitted to having shared sensitive information in exchange for lucrative economic financial deals facilitated by Capvision. The authorities also found Capvision in violation of several laws relating to national security.
Relevant bits from an SCMP report state:
According to the China Central Television (CCTV) report, national security authorities raided the Shanghai, Beijing, Suzhou and Shenzhen offices of Capvision, which runs China’s largest expert network group and has offices across the globe including Hong Kong and New York.
The company was found to have “extensively undertaken consulting projects from overseas companies in sensitive industries”, and some of these companies have “close relationships with foreign governments, military, and intelligence agencies”.
On the role of consultancy and diligence firms, the report states:
Consultancies and due diligence advisories in China, both local and foreign ones, have long served as the eyes and ears of clients mulling investments in the country, and it has become an industry routine for these companies to share their knowledge, views and expertise as part of their services.
In response to the raids, Capvision released a statement saying “it has set up a compliance commission and will rectify its operation under the guidance of China’s national security authority.”
Thoughts: The concept of development and governance has witnessed a substantial evolution under Xi Jinping. In the past few years, the question of China’s development and governance is not viewed as two isolated concepts by the Chinese leadership, especially Xi Jinping. Every time the issue of development and governance finds a mention in the CPC communiqués, it is always complemented by the need to balance development and security. While this integration of the two concepts is not new, it has certainly become more reinforced under Xi’s leadership. And thus the idea of ‘Comprehensive National Security’ was floated by Xi last year. And a simplistic reading of the document tells us that the aspect of national security has permeated each and every aspect of governance and development strategy that the Chinese leadership announces. And that the policies are being tweaked to cater and accommodate what China regards as its legitimate security concerns and this has led to - if we can call it - securitization of everything.
Two recent developments - China’s recent revisions in its counter-espionage law, which seeks to broaden the definition of espionage and leave the definition of national security open-ended, and a series of crackdown of consultancy and diligence firms that included Bains & Co. (March), Mintz (March) and now Capvision - are a reflection of this evolution of the integrated concept of development and security. The revised counter-espionage law backed by a series of crackdowns is slated to have a wide-ranging impact on all sorts of entities that rely on the exchange of data for their operations. The increased scrutiny is further likely to worsen the business environment for foreign enterprises in China which remains stressed already due to increased US-China tensions.
Interested listeners can tune in to this latest episode of Takshashila’s daily public policy Podcast, All Things Policy, which I recorded with my colleagues Manoj Kewalramani and Anushka Saxena on China’s counter-espionage law and its recent crackdown on consultancy firms:
To read more coverage concerning the matter, please refer to :
This succinct edition of The East is Read Newsletter;
https://www.reuters.com/article/china-security-capvision-idUKL1N3750TC;
https://www.nytimes.com/2023/05/08/business/capvision-china-espionage-law.html;
China’s export growth witnesses a slowdown
Chinese exports in April rose at a slower pace compared to the previous month. The SCMP reports, “exports rose by 8.5% in April from a year earlier to US$295.42 billion, down from a surprising 14.8% increase in March.” The slowdown was recorded despite the low base last year induced by COVID-19.
The SCMP continues:
The weak trade data is consistent with April’s official manufacturing purchasing managers’ index, which fell to 49.2 having remained above the 50-point mark separating expansion and contraction for the first three months of the year.
Imports, meanwhile, fell short of expectations and shrank by 7.9 per cent in April from a year earlier to US$205.21 billion, down further from a fall of 1.4 per cent in March, amid weak demand and lower commodity prices. On a monthly basis, exports fell by 6.4 per cent and imports fell by 9.7 per cent in April.
The slowdown of Chinese exports is largely driven by the weakened global demand. Speculating on the outlook, experts agreed: “exports will decline further before bottoming out later this year given the gloomy outlook for external demand, while the rebound in domestic demand following China’s reopening will drive a recovery in imports over the coming months.”
With an aim to train 500,000 industry professionals, China opens a blockchain research centre
On May 20, China launched its national blockchain research center based in Beijing that would work with universities, research institutes and companies to train workers and support China’s digital economy, according to Xinhua. It adds that the center is also aiming to establish a national-level blockchain network to connect existing blockchain in China and support other industries.
The SCMP reports:
The centre is led by the Beijing Academy of Blockchain and Edge Computing, a government-backed research institute that created China’s first domestically developed open-source blockchain platform called ChainMaker, also known as the Chang’An Chain.
In January, the Beijing government put information from more than 80 government departments on Chang’an Chain to “effectively improve the security and order of government affairs and social data”.
While cryptocurrency - the most popular use case of blockchain technology -continues to be banned in China, the country is encouraging the industrial use of blockchain. It said:
Trading cryptocurrencies is strictly banned in mainland China, while non-fungible tokens (NFTs) have been allowed under the “digital collectibles” moniker, provided they are only bought with yuan and not resold for profit.
Xi Jinping had endorsed blockchain development as a key area of focus in 2019. Subsequently, in 2021, the Chinese State Council issued a five-year plan that identified blockchains as one of sever major areas of development for China’s digital economy.
Beijing presses Provinces to shoulder the responsibility to ensure food security
According to high-ranking agricultural officials, Beijing has directed Provincial governors and party secretaries to ‘shoulder the responsibility of food security’, the SCMP reports.
The report adds:
China is imposing stringent performance evaluations on local government officials to hold them accountable for protecting farmland and ensuring sufficient grain production, as the nation ramps up efforts to strengthen food security.
Chinese cadres with provincial-level governments are at risk of failing their appraisals if they do not meet quotas on farmland size, grain output and crop structure. The warning was issued as the world’s largest agricultural importer has become increasingly hard-pressed to improve self-sufficiency amid heightened geopolitical tensions, according to statements made at a State Council press conference.
The report quoted Lu Jinbo, deputy director of the National Food and Strategic Reserves Administration as saying, “The policy, the first of the kind to apply to provincial governors and party secretaries, was in response to President Xi Jinping’s repeated calls for local governments and party committees to shoulder the political responsibility of food security.”
Owing to Beijing’s concerns over food security lately in the backdrop of US-China worsening ties and disruption in food supplies owing to Russia-Ukraine war, Xi Jinping has repeatedly called for expanding the arable land and cultivating areas in addition to ramping up domestic production of foograins to ensure self-sufficiency.
The report states: Geopolitical upheavals, including pressure from Washington and implications of the Ukraine war, are testing China’s ability to feed its people at a level not seen in decades.
The report quoted Zheng Fengtian, a professor with Renmin University’s School of Agriculture and Rural Development, as saying, “For now, food might be the second-biggest concern after [computer] chips for China, in terms of being controlled by the US.”
Explaining the reasons behind Beijing's recent push, the report said that local governments have failed to meet the lower limit of arable land size set at 120 million ha as authorities have instead pushed for ‘landscaping and lucrative plants: The objective to eliminate absolute poverty in the western and southern areas has also led to a drop in grain-planting acreage as more people have shifted to profitable crops.
Interestingly, while the Chinese authorities are working towards improving the stability and resilience of China’s soybean supply and oilseeds, officials also urged the public to consume less food oils for the sake of their good health.
Before you read further, we have a question to ask you: does public policy excite you, and if so, are you interested in exploring the world of police wonkery in-depth? If yes, please refer to the brochures below to register for Takshashila’s flagship PGP course, starting soon
Section C: Military Developments in China
- Anushka Saxena
Firstly, on 11 May, the Chinese PLA and the Laotian People’s Armed Forces (LPAF) have begun conducting their bilateral military exercise, Friendship Shield 2023, so as to foster interoperability between the two nations’ militaries to effectively “counter transnational armed criminal groups based in jungles and mountains.”
This exercise, scheduled to last till May 28, comes at the heels of Lao Deputy Prime Minister and Foreign Affairs Minister Saleumxay Kommasith’s state visit to China from 16 to 18 April, 2023.
The PLA Southern Theatre Command (STC) is leading a massive delegation to the LPAF’s Kommadam Academy for the exercise, which is inclusive of 200 troops from the 75th Group Army’s combined-arms brigade, assault vehicles such as the 4x4 MRAP Dongfeng CSK141 (Mengshi), as well as equipment for maritime replenishment, mine clearance, explosive disposal, and epidemic prevention.
Commencement ceremony of the China-Laos Friendship Shield-2023 joint exercise in Laos, May 11, 2023 | Source: China Military Net Before this, in 2023, the PLA STC conducted a joint exercise, the ‘Golden Dragon’, with Cambodia, from late March to early April. This too came at the heels of a high-level meeting between Zhang Youxia of the Chinese Central Military Commission (CMC) and the army commander of the Royal Cambodian Army Hong Manai in February, and saw the participation of over 200 troops from the STC’s army, navy, and logistical support force, who arrived in Cambodia abode a Type 071 comprehensive landing vehicle, the Jinggangshan. The purpose of this fifth iteration of the exercise was to conduct joint operations in anti-terrorism and humanitarian aid.
A few weeks later, in late April, the STC conducted a joint exercise with the Republic of Singapore Navy, wherein both sides deployed minesweepers (PLA Chibi and RSS Intrepid) and frigates (PLA Yulin and RSS Punggol) for shore and sea operations. All of these joint military endeavours were preceded by a visit from a working group of the Chinese Ministry of National Defense to Laos, Vietnam and Brunei, where the two sides discussed “the relationship between the two militaries and regional security issues of common concern.”
Thoughts: These are few of the many events that have unfolded in the past three years in China’s military outreach to Southeast Asia. In the past few months, the frequency seems to have increased for two primary reasons. First is Xi Jinping’s excessive emphasis on defense diplomacy under his flagship Global Security Initiative (GSI), and the second is China’s expanding threat perception of expanding US military engagement with countries in the Asia-Pacific region, especially those that China has disputes with in the South and East China Seas.
Secondly and in brief: On 15 May, the Chinese Ministry of National Defense announced that the invitation of the organizer, the guided-missile destroyer Zhanjiang of the Chinese People's Liberation Army (PLA) Navy and the Bayi Aerobatics Team of the PLA Air Force will go to Malaysia to participate in the 16th Langkawi International Maritime and Aerospace (LIMA) exhibition to be held from May 23 to 27.
To read more on developments concerning Chinese military forces, please refer to :
An elaborate report on Graduates from the Dalian Naval Academy of the Navy conducting extensive sea drills;
Spacebattles (a more informal channel for public discussions).
Section D: Foreign Policy Watch
- Kingshuk Saha
Australian trade minister visits China
Australian Trade Minister Don Farrell, at the invitation of Chinese Commerce Minister Wang Wentao, was on a state visit to China from 11 to 13 May.
The ABC NEWS Reports: Don Farrell has become the first Australian trade minister to visit China since 2019, touching down in Beijing on Thursday afternoon. Senator Farrell was met at Beijing International Airport by Australia's ambassador, Graham Fletcher.
As momentum grows on a potential reset of relations with Australia's largest trading partner, Senator Farrell said he hoped for a pathway for China to drop all major restrictions on Australian imports by the end of the year. We're here to continue the process of stabilising our trading relationship with China, to the benefit of our two great nations," he said.
He added: “Since February, we've made progress on a range of products that includes coal, cotton, and other products, and of course, we're making progress in terms of the issue of barley. The issues didn't occur overnight and they're not going to be resolved overnight. What I'd like to come back to Australia with is a pathway to resolve all of those outstanding issues."
On 12 May, Don Farrell said he was "pleased" with his talks with his Chinese counterpart in Beijing on removing trade barriers, but added that his visit was "just another step" in stabilising ties.
Chinese Ministry of Foreign Affairs spokesman Wang Wenbin told a press briefing on Thursday that China was ready to work with Australia. “In this process, the two sides may be able to find a balanced way to resolve each other’s concerns on economic and trade issues through constructive consultation to the benefit of both peoples," Mr. Wang said. China and Australia shared two-way goods trade worth $287 billion in 2022, representing 28 per cent of Australia's total goods trade with the world. Senator Farrell said he would raise human rights issues and the ongoing detention of journalist Cheng Lei and author Yang Hengjun.
David Olsson, president and chair of the Australia China Business Council, said “Recent ministerial meetings have demonstrated that both sides are keen to start a process of more open and more constructive dialogues to address differences and explore opportunities to work more closely in areas where interests are aligned.”
The visit of Farrell shows the desire of both countries to resolve their trade differences and understand each other concerns. It wouldn’t lead to any breakthrough but will pave the way for more dialogues between them.
Chinese foreign minister Qin Gang visit Germany, France, Norway
State Councillor and Foreign Minister Qin Gang, at the invitation of German Foreign Minister Annalena Baerbock, French Foreign Minister Catherine Colonna and Norwegian Foreign Minister Anniken Huitfeldt, was on a state visit to Germany, France and Norway from May 8 to 12.
The La Monde Reports: Chinese Foreign Minister Qin Gang will visit Europe this week, Beijing said on Monday, May 8, as China pushes to act as a mediator in the Ukraine conflict and rebuild ties with the continent. He will hold meetings with counterparts from Germany, France and Norway from Monday to Friday, foreign ministry spokesman Wang Wenbin said.
Qin's visit comes on the heels of several high-profile visits to China by European leaders, most notably French President Emmanuel Macron and German Foreign Minister Annalena Baerbock. Qin and French counterparts are expected to hold an "in-depth exchange of views on implementing the consensus reached by the two heads of state" last month, he told a news briefing Monday. They will also "promote the comprehensive strategic partnership between China and France to continuously reach new heights", Wang said.
The German foreign ministry confirmed Qin will hold talks with Baerbock in Berlin on Tuesday. Spokesman Christofer Burger told a regular news conference the Ukraine war "is a very high foreign policy priority for us in all our talks". Burger said Berlin believed "China has an important role to play in this issue and, in this respect, it would not surprise me if this were to be raised again."
Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China, said on the matter: “China-Europe relations, which seem to be warming up, will face multiple tests. High-level Chinese officials' visits at the moment, partly serve to prevent a possible crisis, such as warning Europe about the reported sanctions.
James F. Downes, Professor at Hong Kong Metropolitan University, said: “Qin’s visit with the two biggest EU members, both of which have close commercial ties with China, may be a part of a wider “divide and conquer” strategy by Beijing. While trade deals and investment would likely be the key issues discussed between China and France and Germany, a stalled EU-wide investment pact was “highly unlikely” to be ratified as it required the approval of the European Parliament.”
Qin's visit to Europe is aimed at creating an atmosphere for mediation in Ukraine and also deepening trade ties with Europe. Qin's visit to Norway reflects Beijing's desire to improve relations with the Nordic countries which have been frosty of late.
Chinese Vice President Han Zheng visits Portugal
Chinese Vice-President Han Zheng, at the invitation of the Portuguese government, was on a state visit to Portugal from 7 to 10 May.
The People Daily Reports: Chinese Vice President Han Zheng visited Portugal from Sunday to Tuesday and met with Portuguese President Marcelo Rebelo de Sousa and Prime Minister Antonio Costa to discuss bilateral ties.
When meeting with Rebelo de Sousa, Han conveyed the cordial greetings and best wishes of Chinese President Xi Jinping. Han said that under the guidance of the two heads of state, China-Portugal relations have maintained sound and steady development.
Since the beginning of this year, China's economy and society have returned to normal and its economic growth has picked up, creating greater cooperation opportunities between China and Portugal and other countries, Han said, China is committed to developing friendship and cooperation with other countries, promoting the building of a new type of international relations, and expanding converging interests with other countries, he added. China-Portugal and China-Europe relations should focus on win-win cooperation, Han said, noting that China is willing to deepen mutually beneficial cooperation with Portugal and Europe to serve respective economic development and contribute to the stability and recovery of the world economy.
For his part, Rebelo de Sousa asked Han to convey his cordial greetings and best wishes to Xi, hailing that the Portugal-China friendship has grown stronger as time goes by. He said that Portugal has always been committed to building a bilateral relationship featuring friendly mutual trust and positive cooperation.
The Portugal side refuses to view its relations with China and Europe-China relations from a simple perspective. The Portuguese president said Portugal is ready to further strengthen high-level exchanges with China, deepen important cooperation in trade, science, technology, culture and people-to-people exchanges, among other fields, and continue to actively promote constructive cooperation between Europe and China.
Rui Lourido, the president of the China Observatory, commented on the matter: “Many European leaders were surprised that Portugal was chosen as the first country of the European Union to be visited by the new Vice-President of China, Han Zheng, from May 7 to May 10. However, this preference for Portugal does not come as a surprise to those who have been following Portugal’s relations with China. The China-Portugal Global Strategic Partnership was established in 2005 to intensify bilateral contacts. China is Portugal’s largest trading partner in Asia and the largest source of imports outside the EU.”
Zheng's visit to Portugal shows Beijing's desire to deepen its ties with Europe amidst its power politics with Washington and for Portugal, deepening ties with China means more investments.
China expels Canadian diplomat in a tit-for-tat measure
China on Tuesday expelled Jennifer Lynn Lalonde, Consul-General of the Consulate of Canada in Shanghai, a day after Canada announced it would expel a Chinese diplomat Zhao Wei over allegations, he was involved in efforts to intimidate Conservative lawmaker Michael Chong.
The New York Times Reports: A major diplomatic rift erupted between Canada and China on Tuesday as Beijing expelled a Canadian diplomat in a tit-for-tat move just hours after Ottawa said it had ordered a Chinese envoy to leave amid allegations of influence peddling.
On Monday night, Canada said it had declared a Chinese diplomat who had been accused of intimidating and gathering information on a Canadian lawmaker “persona non grata,” and ordered him to leave. Hours later, China said it was retaliating by expelling a diplomat from the Canadian consulate in Shanghai. Diplomatic expulsions are not common.
In 2018, Canada joined Western allies in booting Russian envoys in the wake of accusations that Kremlin agents used a nerve agent to poison a former Russian spy, Sergei V. Skripal, 66, and his daughter, Yulia Skripal, 33. Tensions between Ottawa and Beijing have flared before, perhaps most notably in December 2018, when Canada arrested a top executive of the telecommunications firm Huawei at the request of the United States.
China retaliated by detaining two Canadian citizens, who were released after the Huawei executive, Meng Wanzhou, reached a deal to return to China.
Canadian Prime Minister Justin Trudeau, on the expulsion of a Canadian consul in retaliation for Ottawa’s ejection of a Chinese official, said: “We understand there is retaliation, but we will not be intimidated, we will continue to do everything necessary to keep Canadians protected from foreign interference.”
The Global Times Reports: China and Canada are engaged in a rare, high-profile diplomatic row as Beijing declared a consul of the Consulate General of Canada in Shanghai as "persona non grata" on Tuesday and asked the Canadian diplomat to leave China before May 13, a necessary and legitimate countermeasure in response to the unreasonable move by the Canadian side of hyping "China's interference" and expelling a Chinese diplomat.
Some Chinese observers point out that it's a rare move for China to expel a foreign diplomat, but Canada appears to have become a leading anti-China force in the US-led small clique. Its China policy has become even more confrontational than that of Washington, which has dragged Canada-China relations into a deep freeze.
The current anti-China waves across Canadian politics and public opinion could be seen as a Canadian Version of McCarthyism in the 21st century, fully highlighting the lack of strategic vision and continuity of Ottawa's China policy, some observers said.
In response to Canada's unreasonable expulsion of a Chinese diplomat, the Chinese Foreign Ministry announced on Tuesday that the consul of the Consulate General of Canada in Shanghai has been designated "persona non grata" and has been asked to leave China before May 13.
This year is the 100th anniversary of Canada's infamous Chinese Exclusion Act, the history of which the North American country should have reflected upon. However, Canada explicitly or implicitly listed China as a hostile country, setting off waves of hostility in its publicity, investigation and even legislation against the so-called China's interference in Canada, Yao Peng, deputy secretary-general of the Canadian Studies Center of the Chinese Academy of Social Sciences, told the Global Times on Tuesday.
The expulsion of the Canadian diplomat by China was expected as a tit-for-tat reaction. These incidents highlight the worsening of the relations between both countries from bad to worse.
Moreover, Canada on Monday expelled Chinese diplomat Zhao Wei after an intelligence report accused him of trying to target opposition Conservative lawmaker Michael Chong and his Hong Kong relatives after Chong condemn Beijing's conduct in Xinjiang province as genocide.
The CTV NEWS Reports: The Liberal government moved Monday to expel Chinese diplomat Zhao Wei, who Canada's spy agency alleged was involved in a plot to intimidate Conservative MP Michael Chong and his relatives in Hong Kong. Foreign Affairs Minister Melanie Joly wrote in a statement Monday that Canada has declared the Toronto-based diplomat as "persona non grata."
Joly's statement came just as MPs were voting in favour of a Conservative motion calling for certain diplomats to be expelled and for the government to call a public inquiry into foreign interference. Calls for Zhao to be expelled began last week after a report in the Globe and Mail that CSIS had information in 2021 that the Chinese government was looking at ways to intimidate Chong and his relatives in Hong Kong.
The federal government has confirmed that report. “This should have happened years ago," Chong said Monday. "I hope that this makes it clear not just to the People's Republic of China, but other authoritarian states who have representation here in Canada, that this crossing the line of diplomacy into foreign interference threat activities is utterly unacceptable here on Canadian soil." The threats against Chong came after he successfully sponsored a motion in the House of Commons labelling Beijing's treatment of Uyghur Muslims in China a genocide.
On Monday, China's embassy in Ottawa issued a statement that accused Canada of breaching international law and acting based on anti-Chinese sentiment. It said the move has "sabotaged" relations between China and Canada, according to an official English translation provided by the embassy, and promised unspecified retaliatory measures.
Li Haidong, a professor at the China Foreign Affairs University, said: “The fundamental reason that Canada made those baseless allegations against China is that the country has been enhancing its strategic coordination with the US, and the latest expulsion could signal the start of a series of tit-for-tat moves.”
This incident will deepen the bad blood between China and Canada. It is rare to remove an accredited diplomat. China has reacted strongly and reprisal action will likely be taken.
Section E: Chinese Domestic Politics
- Amit Kumar
This week, the primary news is that Xi Jinping presided a meeting on promoting the coordinated development of the Beijing-Tianjin-Hebei region, held in north China’s Hebei Province on May 12. During his inspection of the Hebei province, Xi made some key remarks. Below are the highlights from his tour as per Xinhua:
Xi toured the cities of Cangzhou and Shijiazhuang where he learned about the crops that are tolerant of drought and high alkalinity at a wheat field and stressed the need to prioritize the comprehensive use of saline-alkali land, leverage the key role of scientific and technological innovation, expand the cultivation area of suitable crops and develop the intensive processing of farm products.
During his visit to the coal port area of Huanghua Port, Xi noted the unique locational advantages and convenient shipping conditions of Hebei Province, underscoring the need to upgrade Hebei's ports and optimize their functional layout to play a bigger role in promoting coordinated regional economic development and developing a modern industrial system.
While visiting a research institute of China Electronics Technology Gorup Corporation in Shijiazhuang, Xi stressed the need for new breakthroughs in core technologies in key fields and encouraged researchers to achieve consistent progress in grasping cutting-edge technologies and developing more technological and engineering equipment and projects of great significance.
Later during his visit to a biomedical industry park, he emphasized the importance of strengthening basic research and scientific innovation capacity to keep the lifeline of the biomedical industry firmly in China's own hands. To achieve this, he called for more research and development of medicines that fit into the genetic and physical characteristics of the Chinese population.
While presiding over the meeting on promoting the coordinated development of the Beijing-Tianjin-Hebei region, Xi made the following remarks:
He called on Hebei to focus on the primary task of high-quality development and the strategic task of creating a new development pattern to accelerate building the province into an economic powerhouse with a sound environment
Describing the strategies as effective channels for advancing Chinese modernization, he said that “It has been proven that the CPC Central Committee's major regional development strategies meet the need for the country's high-quality development in the new era.”
Xi called for solid and orderly efforts to relieve Beijing of functions non-essential to its role as the national capital, urging the planning for the relocation to Xiong'an of another batch of the headquarters of centrally-administered state-owned enterprises in Beijing as well as their subsidiary companies and units of innovation operation.
“Work should be done to restrain Beijing's functions non-essential to its role as the national capital from increasing”: He called for more progress in developing both the Beijing municipal administrative center and Xiong'an to effectively rid Beijing of "big city malaise."
Xi called for the Beijing-Tianjin-Hebei region to play an exemplary role in achieving greater self-reliance and strength in science and technology, he said, calling for accelerated efforts to build Beijing into a major hub for independent and original innovation.
Xi urged efforts to consolidate and enlarge the foundation of the real economy, stressing that strategic emerging industries such as integrated circuits, cyber security, biomedicine, power equipment and emergency response equipment should be the first priority. He also called for efforts to build world-class advanced manufacturing industrial clusters.
He stressed that Beijing's edge in scientific and technological innovation should be combined with Tianjin's strength in advanced manufacturing research and development
Xi urged efforts to help eligible areas in Hebei absorb the scientific and technological spillovers from Beijing and Tianjin as well as the transfer of industries. He also called for building the Beijing-Tianjin-Hebei region into a national pacesetter in opening up.
Eye on China is a weekly newsletter curated by the Indo-Pacific Studies Programme at The Takshashila Institution, a public policy think-tank based out of Bengaluru, India.
Contributors :
India-China Relations: Anushka Saxena
Economy and Tech: Amit Kumar
Military Developments in China: Anushka Saxena
Foreign Policy Watch: Kingshuk Saha
Chinese Domestic Politics: Amit Kumar
