LAC Situation - Xiaomi's Assets Seized - Xi on Regulating Capital - Zero-COVID Policy to Stay- Xinhua Interviews Lavrov & Kuleba - US Perceptions of China - Solomon Islands Deal - Karachi Attack
I. India-China Ties
by Shrey Khanna
In an interview with the Indian Express, the outgoing Army Chief General M. M. Naravane addressed the key issues and challenges facing the Indian Army. The General stated that the two Cs – China and Covid-19 were the major challenges during his tenure.
On China’s posture in eastern Ladakh and the change since 2020 on the LAC, he stated:
“The events of 2020 have brought about a paradigm shift in force posturing in eastern Ladakh by both sides. PLA today has a deployment of approximately 60,000 troops opposite eastern Ladakh from the erstwhile deployment of approximately 8,000 troops, and this deployment has been sustained since the last two years. Our own deployment is in equal measure and the Indian Army is well seized of the extant situation in eastern Ladakh and is well poised to counter any belligerent actions of the PLA in the future.”
On lessons learnt from the Galwan incident:
“Galwan was amongst one of the many places along the LAC in eastern Ladakh where friction occurred in 2020. All these events brought to fore the primacy of the northern borders, based on which certain measures were undertaken, some of which are still ongoing. They include augmentation and rebalancing of forces. Based on the reviewed threat perception, rebalancing of forces was carried out, in which reorientation of forces to the northern borders has been done, while retaining effective capability along the western front.
Development of requisite infrastructure to support operational and logistic requirements on the northern borders is being undertaken to include construction of critical roads and railway lines along with tunnels, construction/resuscitation of airfields, advanced landing grounds and helipads to enhance connectivity in difficult terrain and weather conditions.
There was a felt need to upgrade our Intelligence, Surveillance and Reconnaissance (ISR) capabilities, especially along the northern borders. Towards this, all-weather ground and air/space-based ISR capabilities for sustained durations at strategic/operational and tactical levels have been achieved and real time inputs from drone and satellite imagery are being made available at short notice. In addition to these, integrated human intelligence, electronic intelligence, space, cyber intelligence capabilities from various agencies are being made available to field formations.”
On why Galwan happened:
“We have been asking ourselves this question as well for the past two years about China’s move, but have not been able to fathom why this (Galwan incident) happened. Was it due to internal/external dynamics or pressure regarding the Covid pandemic which led China to take this step? We don’t know.”
On the progress of talks at the remaining friction points:
“Till date, both sides have engaged in 15 rounds of Corps Commander-level talks, some of which have yielded disengagement from some friction areas. Talks for resolution of balance frictions points are ongoing, both in military and diplomatic domains. However, such processes take time and we must not expect an outcome after each round of talks. What is important is that both sides are continuing to engage in a positive atmosphere and I am sure it will lead to resolving our differences.”
On the Nexus between China and Pakistan:
“the possibility of a two-front situation The Indian Army is well poised and prepared to deal with any emerging contingency not only in eastern Ladakh, but all along the northern borders. While collusivity between China and Pakistan continues to remain a challenge in both physical and political-military domains, the Indian Army maintains preparedness to meet the challenge. The current ceasefire along the Line of Control is an ongoing CBM between India and Pakistan and should in no manner be construed as dissipation of a collaborative threat. Engagement on both the fronts simultaneously would be challenging. However, our armed forces are well poised and disposed to handle both the fronts simultaneously including the internal security challenges.”
Meanwhile, The Arunachal Times reported on April 30 that the Arunachal Pradesh government has taken up three villages along the India-China border as a pilot initiative for developing them as model villages.
The Deputy Chief Minister Chowna Mein in his address to a panel discussion as part of the Azadi Ka Amrit Mahotsav said that: “The three villages – Kaho, Kibithoo, and Meshai – have been taken up with a focus on 3Cs – cluster, convergence, and community”. He also stated that “the state government has earmarked Rs 30 crores for the development of these villages in the 2021-22 budget”.
Further, he emphasised that
“It is extremely important that the government takes up comprehensive development of the border areas by not only filling the infrastructural gaps but also by improving public service delivery in the remotest corners. We need to focus on income-generating activities for the people residing in the tough border areas and ensure that all government programmes reach the last man”.
In his press conference on April 29, China’s Foreign Ministry Spokesperson Zhao Lijian said that the work on the Indian students’ return to China has begun. In his reply to a question posed by Shenzhen TV, Zhao said:
“China attaches high importance to Indian students’ concern for returning to China to resume their studies, and has shared with the Indian side the procedure and experience of the return of students from other countries. The work on the return of Indian students has in fact begun and what needs to be done now is for the Indian side to submit a name list of students who have the needs to return to China. China understands that the number of Indian students is so large that it takes some time for the Indian side to collect the information. All in all, China has been prepared for the return of some Indian students. What I want to stress is that the current COVID situation remains complex and severe. The arrangement for the return of foreign students to China needs to be made in a coordinated manner in light of the changing international epidemic situation and the characteristics of the students’ majors. This principle applies equally to all foreign students.”
In response to a follow-up question by PTI asking about the timeline of the return, Zhao said:
“I don’t have an answer on the specific arrangement at the moment. We attach high importance to the issue of foreign students’ return to China for their studies, including Indian students. These international students are envoys for friendly exchanges between China and their home countries. After completing their studies in China, they may return home and work as journalists or diplomats, even ambassadors to China. They represent the future of our relations.
China always attaches great importance to and fully understands these students’ ardent wish to resume their studies in China. We noted that some are on government scholarship. The Chinese government has provided financial support to them in the hope that once they complete their studies, they will act as a bridge of friendship between their countries and China and contribute to the development of bilateral ties.
As to the specifics you asked about, I’m sure we will strive to provide convenience to the students through existing channels including our embassy.”
When asked by Prasar Bharti about the “criteria” based on which the Indian side has to prepare a list, Zhao declined to share the details. Instead, he said:
“I’m sure there will be communication on them [students] through existing channels including our embassy to deliver on the good news.”
On March 30, the Enforcement Directorate (ED) seized Rs 5,551.27 crore ($725 million) from the bank accounts of mobile manufacturing company Xiaomi Technology India due to the violations of the provisions of the Foreign Exchange Management Act, 1999.
The assets were seized under the Act after an investigation was launched against the company in connection with alleged “illegal remittances” sent abroad in February.
The ED statement read: “The company started its operations in India in 2014 and started remitting the money from 2015. The company has remitted foreign currency equivalent to Rs 5,551.27 crore to three foreign based entities which include one Xiaomi group entity in the guise of royalty. Such huge amounts in the name of royalties were remitted on the instructions of their Chinese parent group entities. The amount remitted to other two US based unrelated entities was also for the ultimate benefit of the Xiaomi group entities.”
“Xiaomi India procures completely manufactured mobile sets and other products from the manufacturers in India. Xiaomi India has not availed any service from the three foreign based entities to whom such amounts have been transferred. Under the cover of various unrelated documentary façade created amongst the group entities, the company remitted this amount in the guise of royalty abroad which constitutes a violation of Section 4 of the FEMA. The Company also provided misleading information to the banks while remitting the money abroad,” the agency’s statement said.
The Xiaomi statement said: “These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments. However, we are committed to working closely with government authorities to clarify any misunderstandings.”
II. Xi’s Election, COVID, Politburo Meeting & Tech Rectification
by Manoj Kewalramani
In this section, I thought I’d do a quick wrap of some of the key domestic developments in China. Let’s begin with Xi Jinping’s election to the 20th Party Congress last week. He was elected by unanimous vote as a delegate from Guangxi.
“The unanimous vote of Xi represents the common will of over 2.5 million CPC members and 150,000 primary-level Party organizations in Guangxi, as well as the wholehearted support of the region's 57 million residents of all ethnic groups, according to the congress. It also shows the common wish and strong desire of the hundreds of millions of Chinese people to follow his lead toward national rejuvenation and strive for a brighter future…Delegates agreed that it is essential to acquire a deep understanding of the decisive significance of the establishment of both Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. They believed that Xi's core position must be firmly upheld, and so must the Central Committee's authority and its centralized, unified leadership. They expressed the need to loyally support, uphold and protect the leadership core.”
Next, although there was some good news this week with reports informing that Shanghai had contained community transmission, COVID-19 continues to spread across cities in China. Restrictions are beginning to tighten in Beijing during the May Day holiday period. The Chinese capital reported 48 daily symptomatic Covid-19 cases, compared with 47 the day before, Xinhua said on Saturday. The total caseload in the city as of Saturday was 282. Hindustan Times reports that Beijing “has ordered shut all schools, public places including entertainment venues and gyms and theatres until May 4 as it attempts to stop residents from gathering or going out during the holidays…Even after the holidays are over, the local government in Beijing has said residents must provide nucleic-acid test results within seven days before going to public places or taking public transport. Starting May 5, a negative Covid test taken within the past week will be needed to enter ‘all kinds of public areas and to take public transport’, according to a notice on the city’s official WeChat page.”
The dynamic clearing or zero-COVID policy is leading to public frustration and serious complications for officials, but it’s clear that the central leadership is not going to change course. In terms of the challenges for the economy and officials at different levels of the system, do read this interview with Joerg Wuttke, President of the EU Chamber of Commerce in China. Also, it’s worth noting this Financial Times report:
“President Xi Jinping, the officials and policy advisers warn, may be similarly ignorant about the possible consequences of his ‘zero-Covid’ policy, which has forced Shanghai’s 26mn residents into a draconian, five-week-and- counting lockdown that many people now fear may be repeated in Beijing. The stakes are high for Xi, who aims to take an unprecedented third term as head of the Chinese Communist party, state and military later this year. His carefully cultivated image as a strong and competent leader could be badly tarnished if the government loses control of Covid — or blunders into an economic crisis while trying to contain it…One government policy adviser, who asked not to be identified, said that making Xi understand his previously successful zero-Covid policy might not withstand the highly contagious Omicron variant without devastating economic costs was now a ‘key challenge for the system’. ‘People are telling Xi the lockdowns are a concern but I don’t think they’re saying how big a concern it really is,’ the adviser said. ‘He’s just so proud of China’s accomplishments fighting Covid that I don’t think he worries about the economy. ‘I don’t think Omicron is going to be contained but this is what the big leader said, so people are making decisions based on this assumption,’ he said, adding that the situation in China was now worse than when Covid first spread in early 2020.”
A Politburo meeting on Friday talked about (SCMP’s report on the meeting) doubling down on the dynamic zero-COVID policy and called for achieving the “expected goals of economic and social development.” The statement said that “Covid must be contained and the economy must be stabilised…We should waste no time in planning more policy tools and enhance the strength of adjustment in due course.”
The meeting called for speeding up the implementation of established policies such as tax cuts and tax and fee reductions. It talks about focusing on expanding domestic demand, and focusing on investment, strengthening land, energy use, environmental impact assessment and other safeguards, while comprehensively enhancing infrastructure construction. It further said that “it is necessary to adhere to the positioning that houses are for living in, not for speculation, support localities to improve real estate policies based on local conditions…optimise the supervision of pre-sale funds for commercial housing, and promote the stable and healthy development of the real estate market.” The report talked about ensuring the smooth functioning of the capital market. On platforms, it said that it is “necessary to promote the healthy development of the platform economy, complete the special rectification of the platform economy, implement normalised supervision, and introduce specific measures to support the standardised and healthy development of the platform economy.”
The report also said: “The meeting pointed out that we should persist in doing our own thing well, speed up the construction of a new development pattern, unswervingly deepen the supply-side structural reform, solve the problems in development by means of reform, speed up the realisation of high-level scientific and technological self-reliance, and build a strong and resilient national economic circulation system.”
Along with the meeting, the Politburo held its 38th study session, with the theme being on “regulating and guiding the healthy development of capital.” Xinhua has a detailed English story on this – (SCMP’s report on this). Some key points that Xi made in his comments at the meeting:
“We must uphold the leadership of the Party and China's socialist system, and keep the correct political orientation.”
“It is necessary to stimulate the vitality of capital of all types, including non-public capital, and give full play to its positive role in promoting scientific and technological progress, boosting market economy, facilitating people's lives and participating in international competition, so that it always follows and serves the interests of the people and the country, and contributes to building a modern socialist country in all respects and realizing the rejuvenation of the Chinese nation.”
“We must be well aware that profit-seeking as capital's intrinsic nature must be subject to regulation and constraints, otherwise capital's unbridled development will cause inestimable damage to our country's economic and social development.”
The nature of China as a socialist country has determined that we must adhere to the distribution system under which distribution according to work is the mainstay while multiple forms of distribution exist alongside it, and that we must put people first in social distribution. We should ensure that economic development is inclusive and the primary distribution fair, focusing not only on the valorization and growth of capital in social distribution, but on maintaining the dominant status of distribution according to work. Development is for the people and by the people; its outcomes should be shared by the people. We must never falter in our commitment to pursuing prosperity for all.
“The basic system of China’s capital market should be improved to give full play to the role of the capital market and unleash more room for the development of various types of capital. We will improve the system for property rights protection, further the implementation of both the policies and the review system to ensure fair competition, and remove market barriers so that all types of capital enjoy equal opportunities and fair market access, and compete in an orderly manner.”
“We will set up a ‘traffic light’ principle and improve the laws for capital development.”
“We need to improve the regulations and rules on capital development, and tighten oversight and law enforcement against monopolies and unfair competition to crack down, in accordance with the law, on activities such as the abuse of a dominant market position.”
“…guide capital entities to practice core socialist values and promote credibility, responsibility and integrity.”
All of this comes amid reports that the central government was going to ease up on its tech sector rectification campaign. The optimism in the reportage sent tech stocks soaring.
Quick thought: I find the argument of easing rather strange. In fact, it’s a misreading of what the campaign over the past 18 months has entailed. This was not a set of ad hoc actions or an arbitrary crackdown. There have been structural changes that have taken place in China’s technology sector regulatory landscape. The rules of the game have changed. Companies are now operating in a new environment. The only aspect of the easing narrative that makes sense to me is that further changes to the environment are likely being put on hold. That might be the case, although as the tweet below shows that one needs to be cautious about premature celebrations. Anyway, even if that is the case, it doesn’t mean that companies will go back to the way things were prior to the Ant Financial IPO fiasco.
Anyway, WSJ reports:
“China’s top internet regulator is set to meet next week with the country’s embattled tech giants to discuss the regulatory campaign, according to the people, who described the meeting as a sign that officials acknowledge the toll the regulations have had on the private sector at a time when China’s economic outlook is increasingly clouded due to strict Covid measures. Regulators are planning to hold off on new rules that limit the time young people spend on mobile apps, according to one of the people, while another person said that Beijing is considering pushing some of its biggest tech companies to offer 1% equity stakes to the state and give the government a direct role in corporate decisions. The government has already taken 1% stakes in internet-content companies such as ByteDance Ltd., the owner of buzzy short-video platform TikTok, and Weibo Corp., operator of the eponymous Twitter-like microblogging platform. Now, the plan is likely to be expanded to other technology platform operators such as Tencent Holdings Ltd., China’s most valuable company, and Meituan, which runs one of China’s biggest food-delivery services, this person said. By taking a small equity stake and more of a role in companies’ operations, the government ensures that the tech companies are aligned with its broader policies, while the companies themselves generally don’t oppose the government stakes, reasoning that it helps them manage otherwise uncertain policy risks, say two of the people.”
Also Read:
China meets banks to discuss protecting assets from US sanctions
Xi’s visit to Renmin University and Guidelines on Unleashing Consumption Potential
China Pledges Aid for Unemployed, Growth of Internet Firms - based on the State Council’s weekly meeting
China’s Manufacturing Activity Pummeled by Covid Restrictions
III. Xinhua Interviews Kuleba & Lavrov
by Manoj Kewalramani
On Saturday evening, Xinhua dropped interviews with the foreign ministers of Russia and Ukraine. The Russian foreign ministry has put out an English version of the interview with Sergei Lavrov, but there’s no such English translation yet for the interview with Dmytro Kuleba.
The interview with Lavrov begins with a question about the root causes of the conflict in Ukraine. The Russian foreign minister obviously blames the US and the collective West.
He points to:
“NATO’s reckless expansion to the East…All these years, NATO infrastructure has been moving closer and closer to the Russian borders.”
“Washington and Brussels arrogantly rejected the initiatives put forward by Russia in December 2021 to ensure our country’s security guarantees in the west: to stop the expansion of NATO, not to deploy armaments that pose a threat to Russia in Ukraine and to return the Alliance’s military infrastructure to the 1997 configuration, when the NATO-Russia Founding Act was signed.”
He says that US and NATO members “have always viewed Ukraine as a tool to contain Russia.”
He talks about the “anti-constitutional coup d’etat in Kiev in February 2014,” and the consequences in the Donbass region.
He says that the US “encouraged the aggressive anti-Russia course pursued by the Kiev authorities. In fact, they pushed the Ukrainian nationalists to undermine the negotiating process and resolve the Donbass issue by force.”
He talks about “undeclared biological programmes implemented in Ukraine with Pentagon’s support in close proximity to the Russian borders.”
He still calls the war a “special military operation” and says the “aim is to protect people from genocide by the neo-Nazis, as well as to demilitarise and denazify Ukraine.”
Lavrov says that things are “progressing strictly in accordance with the plan” and that the “US and EU intend to fight Russia ‘to the last Ukrainian’.” Also, he adds that “the West is ready to jeopardise the energy and food security of entire regions of the globe to satisfy its own geopolitical ambitions.”
The second question is about the steps Russia is taking to protect the lives of civilians and create humanitarian corridors. This is followed by a question on the sanctions. Lavrov says: “their goal is to strangle our economy by undermining its competitiveness and blocking Russia’s progressive development. At the same time, the Western ruling circles are not embarrassed by the fact that anti-Russian sanctions are already beginning to harm ordinary people in their own countries. I mean the declining economic trends in the United States and many European countries, including growing inflation and unemployment.” He adds that this effort will not succeed. “We will focus our efforts on de-dollarisation, de-offshorisation, import substitution, and promotion of technological independence.”
And then he pushes back at the notion of the “rules-based order” and the concept of the Indo-Pacific, linking actions in Europe with those in Asia. This bit is worth reading in full.
“Today we are not talking about a new “cold war,” but, as I said earlier, about the persistent desire to impose a US-centric model of the world order coming from Washington and its satellites, who imagine themselves to be ‘arbiters of humankind’s fate.’ It has reached the point where the Western minority is trying to replace the UN-centric architecture and international law formed after World War II with their own ‘rules-based order.’ These rules are written by Washington and its allies and then imposed on the international community as binding. We must realise that the United States has been carrying out this destructive policy for several decades now…The West tries to crudely suppress those who carry out an independent course in their domestic and foreign policy. Not just Russia. We can see how bloc thinking is being imposed in the Asian-Pacific Region. We can recall the Indo-Pacific strategy promoted by the United States, which has a pronounced anti-China tendency. The US seeks to dictate the standards according to which Latin America should live, in the spirit of the outdated Monroe Doctrine. This explains many years of the illegal trade embargo on Cuba, sanctions against Venezuela, as well as attempts to undermine stability in Nicaragua and other countries. The pressure on Belarus continues in the same context. This list can go on.”
He adds that the “special military operation in Ukraine also contributes to the process of freeing the world from the West’s neocolonial oppression…”
On a possible peace deal, he says talks are underway “on the possible draft almost daily.” He adds:
“This document should contain such elements of the post-conflict situation as permanent neutrality, the non-nuclear, non-bloc and demilitarised status of Ukraine, as well as guarantees of its security. The agenda of the talks also includes denazification, recognition of the new geopolitical reality, the lifting of sanctions and the status of the Russian language, among other things. Settling the situation in Ukraine will make a significant contribution to the de-escalation of the military and political tensions in Europe and the world in general. The establishment of an institution of guarantor states is envisaged as a possible option.”
Let’s look at the interview with Kuleba now. The first thing one notices in this is how the questions are so differently structured. They are longer and put forward a Chinese perspective. The first question is about how the situation today in Ukraine is at a point that China does not want to see. Kuleba says:
“...we have no doubt that China does not want to see the situation in Ukraine develop to where it is today. We also believe that this war is not in China’s interests. The global food crisis and economic problems caused by Russia’s invasion of my country’s territory will pose a serious threat to China's economy. I believe your experts have thoroughly researched this threat. Every country, including China, wants global stability. After all, international trade and connections between people can only develop better when they are stable. Stability is the guarantee of successful implementation of global projects, such as the ‘Belt and Road’ initiative proposed by Chinese leaders. Russia has already compromised this initiative.” – I guess this is the first time in Chinese media that Russian actions in Ukraine have been termed as an “invasion.”
Kuleba then says that “if Russia is not stopped now, it will cause more crises in a few years.”
He adds: “The Ukrainian people are shedding their blood for independence from foreign invaders, and their outstanding sons and daughters are giving their lives for the survival of the country. The only way to ensure lasting peace and stability in Ukraine is to restore sovereignty over all territories within internationally recognised borders.”
On possible solutions, he says “Ukraine is currently studying the possibility of securing security assurances from permanent members of the UN Security Council and other major powers, including China. Our proposal for China to be one of the guarantors of Ukraine’s security is a sign of our respect and trust in the People's Republic of China.”
Responding to the next question, he says that Ukraine was exercising its “right to self-defense.” He thanks Wang Yi for “his remarks on supporting Ukraine's sovereignty and territorial integrity and his willingness to push for an armistice through diplomatic efforts.” He thanks the Red Cross Society of China for providing humanitarian aid and “the Chinese government for expressing its willingness to continue to provide assistance.” He adds that “we do not see any will from Russia to de-escalate the situation, which continues to bomb, shoot, kill civilians and destroy our peaceful towns and villages…We hope that China will call on Russia for a ceasefire from the standpoint that escalation must be avoided…We hope that China will continue to take a positive stance toward Russia, prompting it to stop aggression, lift the blockade of international trade and respect the territorial integrity of its neighbours…We respect the Five Principles of Peaceful Coexistence, and I also believe that China’s current position is based on this peaceful tradition.”
On a possible peace deal, he says: “A few weeks ago, with Turkish mediation, delegations from both sides held a round of face-to-face talks in Istanbul. Among them, the Ukrainian delegation presented a draft agreement on international security guarantees in Ukraine. The Russian side accepted these proposals and studied them. Regrettably, the negotiation process since has been significantly complicated.”
Also Read:
IV. Region Watch
by Shibani Mehta
Today, the resurgence of nationalism, the rise of China, and the ascension of populist leaders in advanced industrial democracies have given Robert Gilpin’s work renewed relevance. Recent events in the region and whether they mark ‘change’ or highlight ‘continuity’ is a puzzle that can be studied from multiple angles.
Pakistan’s new prime minister, Shehbaz Sharif and administration have stated their intention to breathe new life into the China-Pakistan Economic Corridor (CPEC). With a general election expected to be held by the year’s end, the Prime Minister has said his immediate priorities are stabilising the country’s economy and fixing its damaged diplomatic relations with all-weather friend China.
Responding to a question about continued momentum of CPEC projects, Senator Mushahid Hussain said,
‘...China’s friendship is the cornerstone of Pakistan’s foreign policy, and I see this relationship being further developed and taken to new heights of development,’
During a visit to CPEC Authority (CPECA) offices, the Minister for Planning and Development Ahsan Iqbal directed preparation of a structure to CPECA could be integrated into the Ministry because its mandate was in conflict with rules of business of the various ministries and a parallel organisation created duplication of work and lack of ownership. This was in addition to the Minister’s action to address problems faced by the Chinese investors and contractors working in the CPEC, including swift processing of visas.
This was days before a suicide attack near the University of Karachi’s Confucius Institute killed three Chinese academics and their Pakistani driver.Responsibility for the attack was claimed by the Majeed Brigade, the suicide squad of the Baloch Liberation Army (BLA), an ethnic separatist group responsible for several recent attacks on Chinese nationals working in Pakistan.
Pakistan is now under pressure from Beijing, ‘to make every effort to treat the wounded, conduct a thorough investigation of the attack, and severely punish the perpetrator’ President Arif Alvi promised that Pakistan would spare no effort to fight against terrorism and ensure the safety of Chinese citizens and institutions in the country.
Across the border, militants in Afghanistan fired heavy weapons into a Pakistani military outpost overnight, killing three personnel. The incident took place, Pakistan on April 16 retaliated to an ambush with bombing raids inside Afghanistan that locals in Afghanistan’s eastern Khost province said killed dozens of refugees. The growing security challenge facing Afghanistan’s Taliban rulers and neighbouring Pakistan has worried China which has urged both sides to resolve their differences.
‘Afghanistan and Pakistan are both China’s traditionally friendly neighbors. We believe the two countries can properly resolve respective concerns through dialogue and consultation and jointly safeguard regional peace and tranquility.’
Chinese Foreign Ministry spokesman Wang Wenbin said during the regular media briefing.
In a different media briefing, Chinese Ambassador to Nepal delivered an address on a range of issues in the bilateral relation. Ambassador Hou Yanqi spoke about six key matters:
Anti-pandemic and health cooperation
Steady progress economic and trade cooperation
Border cooperation
Infrastructure projects
Cross-border railway
People-to-people ties
The Ambassador highlighted that Chinese investors are facing problems in Nepal following frequent policy changes, making an indirect reference to the incumbent government’s decision to revoke the decision to award a construction contract of Budhigandaki Hydropower Project to China Gezhouba Group Corporation. The Sher Bahadur Deuba Cabinet on April 7 scrapped the decision of the Oli government made in September, 2018.
On the Belt and Road Initiative (BRI) cooperation between China and Nepal, the Ambassador expressed her belief that:
‘... it has become a road of hope that bolsters resilience and boosts confidence,’ adding that BRI has never been a geopolitical strategy, but a ‘road of development’.
A couple of weeks ago, she said Nepal should become a ‘demonstration garden’ for friendly cooperation among countries, not a fighting ring for geopolitical games. Recent statements coupled with Foreign Minister Wang Yi’s visit despite the ratification of US’s aid project, indicates that Beijing wants to build closer ties with Kathmandu. Nepal should expect intense pressure from both and prepare itself.
Gilpin’s vision emphasized the deep continuities in politics across the ages. He did not see the twentieth-century liberal world order as having remade international politics. Rather, it was part of the same old cycle that went back to the beginning of human history. Decline and conflict, he believed, were all but inevitable features of world politics, in the past and the future.
Also Read:
V. US-China Relations: A Week in Official Statements
By Megha Pardhi
A few themes dominated US-China relations this week. China's Defence Ministry Spokesperson had a press conference and the Ministry released a series of press statements. These press statements addressed several issues like the US-China military ties, US Freedom of Navigation Operations, concern over 'space threat', and the US bio-military activities. Moreover, China's spokesperson also criticized US interference in the Panchen Lama affair.
Lastly, the China- Solomon Island Security Framework Agreement kept propping up in the media which drew a sharp response from Beijing.
The US and China's defense ministers had a phone call on April 20th. This was the first phone call between defense ministers of the two countries after the Biden administration took over. On April 28, the spokesman of China's Ministry of Defence, Senior Colonel Tan Kefei, emphasized the importance of continuing communication in the US-China defense relationship. Among the usual jargon of cold-war mentality, zero-sum mentality, and China's preference to defend its national interests, I noticed one sentence which indicates how China considers the US as an equal. It read, "No one can defeat the other, and no one can change the other" (谁也打不倒谁，谁也改变不了谁).
Next, senior Colonel Tan Kefei, the spokesman of China's Ministry of Defence, criticized the US' freedom of navigation operations. He said that the US has been using "freedom of navigation" as an excuse to ignore other countries' maritime interests and security concerns. He also urged the countries targeted by such freedom of navigation operations to unite against bullying. He was speaking in backdrop of the 2021 Freedom of Navigation Report released by the Pentagon. Tan emphasized that the "U.S. has not even joined the United Nations Convention on the Law of the Sea, but has repeatedly resorted to barbaric "law enforcement" with its powerful ships and cannons." Read the full press conference response here (Chinese)
On the same day, another press release from China's Ministry of defense slams US and Japan for hyping up the "space threat" theory. Tan refuted claims that China is operating around half of the world's surveillance satellites and can spy on the US and its allies. He called these theories an excuse by the US and Japan to increase their own space capabilities. In his remarks, he highlighted that the US has been actively resisting attempts to regulate space. He gave an example of the "Treaty on the Prevention of the Placement of Weapons in Space, the Use or Threat or Use of Force against Space Objects" proposed by China and Russia and the Prevention of an Arms Race in Outer Space" treaty blocked by the US.
On the question of biological warfare by the US, Tan Kefei questioned the relationship between the US Department of Defence and the US overseas biological laboratory. While highlighting China's law-abiding posture and former victim status of biological weapons, Tan also questioned the motive of the US bio-lab in Ukraine.
In April 26 press conference, China's Foreign Ministry spokesperson Wang Wenbin criticized a statement put out by the US Department of State on the whereabouts of 'Panchen Lama.' The statement urged "PRC authorities to account for Gedhun Choekyi Nyima's whereabouts and well-being immediately and to allow him to fully exercise his human rights and fundamental freedoms." Whereas, China's position is that the 14th Dalai Lama, who recognized the 11th Panchen Lama, is an anti-China activist. As per the press statement, "the so-called reincarnated spiritual child is just an ordinary Chinese citizen living a normal life."
Closing China Computerworld (CCW)
In another interesting development, China Computerworld (CCW), the only official joint magazine published by the US and China has decided to cease its publication. Here is Jiaxing Li's coverage if the same for SCMP.
CCW was established in 1980 by the joint cooperation between the US media and marketing firm International Data Group (IDG) and China's Ministry of Industry and Information Technology (MIIT). Its aim was to educate the Chinese public on computers and computer science. The reason cited was financial losses.
My Take: Given the downhill trend in the US-China relations, the closing of another cooperation project does not seem surprising. However, it does indicate that despite all the jargon about cooperation, the US-China relations continue to worsen.
US Congress Passes Bill on Taiwan’s Status at WHO
US House of Representatives passed a unanimous bill urging the US State Department to submit a plan to help Taiwan regain its observer status at the World Health Organization (WHO). The bill is soon expected to be the law after it is signed by US President Joe Biden.
Taiwan's representation in international organizations decreased after Beijing was recognized as the official government representing China and Beijing's insistence on the One China principle. Taiwan was an observer at WHO, but it was stripped of that status in 2017. Recently, Taiwan has intensified its bid to increase participation in international organizations. This bid has been supported by the US informally. The bill passed in the US House of Representatives is a formal nod to the US backing Taiwan.
This bill, along with the recent visit of the US lawmakers to Taiwan drew strong criticism from Beijing.
China-Solomon Islands Deal: What We Know So Far
China and Solomon signed a security pact on 19th April 2022
It is a 'framework agreement' - an inter-governmental framework agreement on security cooperation between the two countries
Details of the deal are not public
Wang Wenbin said on April 20 that "China and Solomon Islands will act according to customary international practice on the basis of consultation."
Areas of cooperation
maintaining social order
protecting people's lives and property
humanitarian assistance
natural disaster response
No mention of military cooperation
Opponents of Solomon's PM leaked a draft document
The Solomon Islands would have the ability to request police or military personnel from China to maintain social order or help with disaster relief
Chinese naval ships would be permitted to dock for resupply and crew transfers
China may be able to place military equipment and personnel station (need Solomon Islands government's consent)
What does China say about the security pact?
It is supposed to promote peace and stability (Source SCMP)
Does not target any third party (source SCMP, same as above, also in spokesperson's remarks)
"parallel and complementary to the existing bilateral and multilateral security cooperation mechanisms" (Chinese spokesperson's press conference on 19th April)
Wang Wenbin gave a cryptic answer about Wang Yi visiting Solomon Answer (See press conference above)
Reuters: Sources say the Chinese foreign minister has visited the Solomon Islands in recent days to complete the signing of the agreement. Can you confirm that the agreement now has been fully signed?
Wang Wenbin: Let me say this again. Foreign ministers of China and the Solomon Islands officially signed the inter-governmental framework agreement on security cooperation between the two countries the other day. I haven't heard of a visit by the Chinese Foreign Minister to the Solomon Islands.
Zhang Sheng Commentary in People's Daily (Zhang Sheng commentary is a pseudonym for official commentary on international affairs. It is known as the voice of China). Manoj's PLA Daily tracker has a breakdown of the commentary. The key defense offered is;
Agreement is necessary
Not an interference in another country’s affairs
The agreement will not lead to the destabilisation of the region
Needed for security capacity building
After the US criticized China-Solomon Island Security Framework for 'lack of clarity, Beijing reminded the US and Australia that South Pacific is not their backyard and revising Monroe Doctrine will not get traction.
What Solomon Island administration says?
Would not allow Chinese military base, said PM earlier in April 2022
'solely domestic applications'
Signed agreement to diversify security partners
"there would be no military base, no long-term presence, and no power projection capability"
"We entered into an arrangement with China with our eyes wide open, guided by our national interests," said PM Sogavare
Reactions to the agreement:
US, Australia, New Zealand protested
US
Expressed concerns over 'lack of transparency' US is considering sending delegations to the Solomon Islands
Includes Kurt Campbell (coordinator for Indo-Pacific Affairs on the National Security Council)
Readout of Senior Administration Travel to Hawaii, Fiji, Papua New Guinea, and the Solomon Islands
Australia
PM Scott Morison said that a military base in the pacific would be a red line
New Zealand
Prime Minister Jacinda Ardern said the pact breached an agreement among Pacific Islands Forum members for nations
Japan
Sent an envoy, vice foreign minister Kentaro Uesugi, to the Solomon Islands
Also Read:
China’s Xi Pushing to Beat the U.S. in GDP Growth Despite Covid Lockdowns
Interesting data here: Half of Taiwanese don't believe U.S. would send troops if China invades
America’s lopsided China strategy: military aid but not enough trade
Pew Survey: China’s Partnership With Russia Seen as Serious Problem for the U.S.
Other Stories:
China and India share a contested border and an uncomfortable neutrality in the Ukraine War — but not much else - Do listen: Sinica podcast episode with Manoj and Manjari Chatterjee Miller as guests.
Also with the above, do read “Tanvi Madan explains why India is not in Russia’s camp”
Chinese FDI in Europe: A report by MERICS & the Rhodium Group
Web users in China told to report posts guilty of ‘historical nihilism’ against Communist Party line/ 20th Party Congress propaganda campaign launched