Quad Summit - Politburo Meeting - UN Human Rights Chief's Visit - IPEF - Biden in East Asia - Blinken's Speech - Li's Warning on Economy - Wang's Pacific Islands Visit - Tibetan Diplomacy in Nepal
I. The Quad Summit
by Shrey Khanna
On May 24, the leaders of Quad countries –Australia, India, Japan, and the US met in Tokyo for their second in-person summit to renew their “steadfast commitment to a free and open Indo-Pacific that is inclusive and resilient.” The grouping released a joint statement which highlighted a common position on a range of global and regional issues – the Ukraine Crisis, the nuclearisation of the Korean Peninsula, the crisis in Myanmar, terrorism, and the peace and stability in the Indo-Pacific.
On Peace and Stability in the Indo-Pacific, the statement affirmed support for ASEAN centrality, welcomed the EU’s Indo-Pacific strategy, backed UNCLOS, spoke about freedom of navigation and overflight, the East and South China Seas and criticised “coercive, provocative or unilateral actions that seek to change the status quo and increase tensions in the area, such as the militarization of disputed features, the dangerous use of coast guard vessels and maritime militia, and efforts to disrupt other countries’ offshore resource exploitation activities.”
The Joint Statement also mentioned the Quad’s focus on tackling other pressing issues in the Indo-Pacific - COVID-19, Infrastructure, Climate Change, Cybersecurity, Critical & Emerging Technologies, Maritime Domain Awareness and Humanitarian Assistance and Disaster Relief (HADR), Quad Fellowship and Space.
On Infrastructure: Quad will seek to extend more than 50 billion USD of infrastructure assistance and investment in the Indo-Pacific, over the next five years. They also spoke about strengthening capacities of the countries in need to cope with debt issues.
On Climate Change, they launched the “Quad Climate Change Adaptation and Mitigation Package (Q-CHAMP)” with “mitigation” and “adaptation” as its two themes.
On Cybersecurity, the Quad partners “will coordinate capacity building programs in the Indo-Pacific region under the Quad Cybersecurity Partnership, and will initiate the first-ever Quad Cybersecurity Day to help individual internet users across our nations, the Indo-Pacific region, and beyond to better protect themselves from cyber threats.”
On Critical & Emerging Technologies, they said that they had “mapped the Quad’s capacity and vulnerabilities in global semiconductor supply chains and have decided to better leverage our complementary strengths to realize a diverse and competitive market for semiconductors.” The statement talked about cooperation at international standardization organizations and strengthening “horizon scanning cooperation” in the future on quantum technologies. The Quad will also convene a business and investment forum for networking with industry partners to expand capital for critical and emerging technologies.
Quad Fellowship: The Quad Fellowship will bring 100 students from our countries to the United States each year to pursue graduate degrees in STEM fields, and is administered by Schmidt Futures. The first class of Quad Fellows will begin their studies in the third quarter of 2023.
On Maritime Domain Awareness and HADR, they announced the launch of the new Indo-Pacific Partnership for Maritime Domain Awareness (IPMDA) to respond to humanitarian and natural disasters, and combat illegal fishing, and the establishment of the “Quad Partnership on Humanitarian Assistance and Disaster Relief (HADR) in the Indo-Pacific”.
China’s foreign ministry responded to the Quad meeting, arguing that “building small cliques and stoking bloc confrontation is the real threat to a peaceful, stable and cooperative maritime order.”
Also this week, India partnered with the US and many other countries to launch the Indo-Pacific Economic Framework for Prosperity. This is covered in detail later in the newsletter.
Moving on, the growing efforts for the institutionalisation in the Indo-Pacific are also evoking a renewed focus on BRICS. Last week, during the virtual summit of BRICS Foreign Ministers, the BRICS expansion process was discussed. On May 27, CCTV asked Wang Wenbin about China’s consideration for the BRICS enlargement in his press conference. Wang replied:
As the BRICS Chair this year, China actively supports the start of BRICS expansion process and broaden “BRICS Plus” cooperation. The recently-held Meeting of BRICS Ministers of Foreign Affairs reached consensus on the BRICS expansion process and held the first ever “BRICS Plus” foreign ministers’ meeting, which fully shows that the BRICS cooperation is open and inclusive. China will work on BRICS parties to continue to have in-depth discussions on BRICS expansion and determine the standards and procedures for that on the basis of consensus. We look forward to more like-minded partners joining the big family of BRICS.”
In response to a question by PTI on the timeline of the return of Indian students to China, Wang Wenbin, in his press conference on May 24, stated that:
“The Chinese side attaches importance to and understands the urgent desire of Indian students to return to China and resume their classes. We will make proper arrangements for Indian students to resume their studies in China on the premise of ensuring sound epidemic prevention and control. The Chinese side is working with the Indian side to handle specific matters and try to arrange for eligible students to return to China at an early date.”
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II. Politburo Meeting, Human Rights & Xi’s leadership
by Manoj Kewalramani
On Friday, Xi Jinping presided over a meeting of the Politburo. The first report (English report) from the meeting said that it deliberated a regulation on the Party's work regarding political consultation. Xinhua’s report says that the meeting stressed that:
“In order to do a good job in political consultation, we should take Xi Jinping Thought on socialism with Chinese characteristics in the new era as the guide, implement the important thoughts of General Secretary Xi Jinping on strengthening and improving the United front work and the work of the CPPCC, strengthen the ‘four consciousnesses’, the ‘four self-confidences’ and achieve the ‘two safeguards’.” It further added that: “it is necessary uphold and strengthen the Party’s overall leadership, and through the institutional system and working mechanism of political consultation under the leadership of the Party, we can ensure the correct political direction of political consultation and improve the efficiency of political consultation.” 会议强调,做好政治协商工作,要以新时代中国特色社会主义思想为指导,贯彻落实总书记关于加强和改进统一战线工作的重要思想、关于加强和改进人民政协工作的重要思想,增强“四个意识”、坚定“四个自信”、做到“两个维护”。要坚持和加强党的全面领导,通过党领导下的政治协商工作的制度体系和工作机制,确保政治协商正确的政治方向,提升政治协商效能.
The second report from the meeting discussed the 39th study session of the Politburo. This one discussed a national research program dedicated to tracing the origin of the Chinese civilisation. Director of the history department at CASS, Wang Wei, spoke at the meeting.
Xi “called for a better understanding of the 5,000-plus-year history of the Chinese civilization to strengthen historical awareness and cultural confidence of the Party and society in the joint pursuit of national rejuvenation. Xi said the research program on the origin of the Chinese civilization has made marked achievements, but it should be moved forward as there are still many historical mysteries to be unraveled and many issues waiting for settlement with consensus built based on solid evidence and study. It is a complicated, time-consuming, and systematic task to explore the origin and formation of civilization, noted Xi, urging efforts to combine archaeological excavation and literature research with tools and methods of natural sciences. Xi called for greater efforts in studying unearthed artifacts and cultural relics and promoting related knowledge to enhance the power of the Chinese civilization to influence and inspire.”
It adds: “Stressing that fine traditional Chinese culture is the root and soul of the Chinese nation, Xi said efforts should be made to adapt it to the context of a socialist society and to develop advanced socialist culture. The Chinese civilization has been known for its openness and inclusiveness since ancient times, Xi said, urging efforts to promote the view of civilization that champions equality, mutual learning, dialogue, and mutual accommodation. Misunderstandings between civilizations can be overcome through enhanced exchanges, clashes avoided by strengthening mutual learning, and civilization superiority replaced by the co-existence of various civilizations, Xi said. Xi also called for respect for people in different countries exploring their own development paths. He stressed telling the stories of the Chinese civilization well to present China as a trustworthy, loveable and admirable country, and the charm of the long-standing and rich Chinese civilization.”
Also this week, UN High Commissioner for Human Rights Michelle Bachelet wrapped up her China visit. During the visit, she spoke to Xi via video link. I fail to understand the point of this visit. All it did was allow Beijing to push it agenda on the human rights issue, while justifying policies in Xinjiang. Bachelet’s visit also coincided with the publication of a detailed BBC multimedia report Xinjiang Police Files: Inside a Chinese internment camp.
John Sudworth’s piece - The faces from China’s Uyghur detention camps - explains:
“The Xinjiang Police Files - the title being used for the cache by a consortium of international journalists of which the BBC is part - contain tens of thousands of images and documents. They include classified speeches by senior officials; internal police manuals and personnel information; the internment details for more than 20,000 Uyghurs; and photographs from highly sensitive locations.” The report adds that the “documents provide some of the strongest evidence to date for a policy targeting almost any expression of Uyghur identity, culture or Islamic faith - and of a chain of command running all the way up to the Chinese leader, Xi Jinping.”
Anyway, back to Bachelet’s visit. First, she met with Foreign Minister Wang Yi. The report on that meeting has Wang making four points:
we must adhere to mutual respect and not politicise human rights;
we must adhere to fairness and impartiality, and not engage in double standards;
we must adhere to seeking truth from facts; the cause of human rights cannot be detached from a country’s realities and development stage
we must adhere to openness and tolerance and not engage in camp confrontation
Later, she engaged with Xi Jinping, who was quite blunt in talking about China’s human rights priorities and perspectives. He told her that “when it comes to human rights issues, there is no such thing as a flawless utopia; countries do not need patronizing lecturers; still less should human rights issues be politicized and used as a tool to apply double standards, or as a pretext to interfere in the internal affairs of other countries. It is important to abide by the purposes and principles of the UN Charter, advocate humanity's common values, and steer global human rights governance toward greater fairness, justice, equity and inclusiveness.”
The visit also coincided with intensified propaganda on human rights. For instance, here’s a breakdown of Zhang Weiwei’s piece in People’s Daily on the West’s human rights limitations.
Then after the visit, Bachelet issued a detailed statement. This shows how much the visit did really nothing to pressure the Chinese government on human rights issues. Rather, it offers Beijing a useful tool to pushback against any international criticism. At the outset, Bachelet says that the visit “was not an investigation.” She then talks about domains like poverty alleviation, legislation, gender equality, law enforcement and radicalism and terrorism.
Some interesting excerpts from the statement:
“Violent acts of extremism have a terrible, serious impact on the lives of victims, including those tasked to protect the community. But it is critical that counter-terrorism responses do not result in human rights violations. The application of relevant laws and policies, and any mandatory measures imposed on individuals, need to be subject to independent judicial oversight, with greater transparency of judicial proceedings. All victims must be able to seek redress.”
She spoke about the establishment of a working group, which “will organize a series of follow-up discussions about specific thematic areas, including but not limited to development, poverty alleviation and human rights, rights of minorities, business and human rights, counter-terrorism and human rights, digital space and human rights, judicial and legal protection and human rights, as well as other issues raised by either side.”
Excerpts on Xinjiang:
During my two days in Kashgar and Urumqi, I met with a range of officials, including the Secretary of the Chinese Communist Party of the Xinjiang Uyghur Autonomous Region (XUAR), the Governor and the Vice-Governor in charge of public security, among others. I visited Kashgar prison and the Kashgar Experimental School, a former Vocational Education and Training Centre (VETC), among other places…In the Xinjiang Uyghur Autonomous Region, I have raised questions and concerns about the application of counter-terrorism and de-radicalisation measures and their broad application – particularly their impact on the rights of Uyghurs and other predominantly Muslim minorities. While I am unable to assess the full scale of the VETCs, I raised with the Government the lack of independent judicial oversight of the operation of the program, the reliance by law enforcement officials on 15 indicators to determine tendencies towards violent extremism, allegations of the use of force and ill treatment in institutions, and reports of unduly severe restrictions on legitimate religious practices. During my visit, the Government assured me that the VETC system has been dismantled. I encouraged the Government to undertake a review of all counter terrorism and deradicalization policies to ensure they fully comply with international human rights standards, and in particular that they are not applied in an arbitrary and discriminatory way.
Finally, this week, across state media, there has been a fresh campaign highlighting Xi Jinping’s leadership. The People’s Daily launched a new series of columns with the theme “沿着总书记的足迹” - following the footprints of the general secretary. CCTV’s prime news show, Xinwen Lianbo, launched a similar series, as did Xinhua. Meanwhile, Xi Jinping attended a meeting commending heroes and role models from the public security system.
Also, the People’s Daily had a long piece praising Xi’s leadership in balancing security and development.
The article says that: Xi Jinping has “profound insight into the development trend of the times, has accurately grasped the historical development trend, and emphasised the need to ‘adhere to a balance between development and security, attach equal importance to development and security, and achieve a sound interaction between high-quality development and high-level security’. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core, hundreds of millions of people have worked together to overcome difficulties, promoted a dynamic balance between high-quality development and high-level security, and declared to the world with a firm steps towards great the rejuvenation: ‘China's economic development will have an even brighter future’!” 总书记深刻洞察时代发展大势,准确把握历史发展趋势,强调要“坚持统筹发展和安全,坚持发展和安全并重,实现高质量发展和高水平安全的良性互动”。在以同志为核心的党中央坚强领导下,亿万人民团结奋发、攻坚克难,推动高质量发展和高水平安全动态平衡,以迈向伟大复兴的坚定步伐向世界宣示:“中国经济发展前景一定会更加光明”!
III. Biden’s East Asia Visit, IPEF & Blinken’s China Speech
by Manoj Kewalramani
My colleague Shrey has covered the details of the Quad summit above. There are three other documents from US President Joe Biden’s visit that I am covering in this section, along with Secretary Blinken’s speech on US’ China policy, and the reactions to all this from Beijing.
But before I get to those, here’s a brief take on what I am thinking after the week’s developments:
Broadly, my view is that this visit was a positive development. First, it showed that the Indo-Pacific remains the priority region for the United States. This was really important, given the concerns that the war in Ukraine would take attention away from the Indo-Pacific. Second, the unveiling of the Indo-Pacific Economic Framework for Prosperity is also a positive. However, it is clear that the IPEF is woefully short on specifics. It’s also interesting to note that US officials appear to be pitching the framework and American engagement as not an either/or choice for countries in the region. Rather, the focus is on pitching the US as a “partner of choice.” The US’ economic approach appears to be one of framing the rules of the game going ahead for high-quality economic cooperation. (For instance, see US NSA Jake Sullivan’s comments here.) And while this is smart and strategic, it might also be a frustratingly slow process owing to very different views that countries will have on areas like market access, digital economy, environmental and labour standards, all of which can delay economic gratification for others. The key will, therefore, be achieving tangible early outcomes. If negotiations drag on, countries anyway will continue to seek finance from where they can, which works for Beijing. Chinese lending and investments haven’t been focussed on setting the rules. The system has incentivised spending money and capturing markets, which has the potential to create dominance allowing influence in shaping the rules.
Anyway, let’s look at the key documents from Biden’s visit. First, the US-Republic of Korea Leaders’ Joint Statement, which focuses on three sections: defense and security issues, critical and emerging technologies and cyber security, and building their global comprehensive strategic alliance, which is “firmly rooted in the shared values of promoting democracy and the rules-based international order, fighting corruption, and advancing human rights.” The document has a specific paragraph on “Russia’s further aggression against Ukraine.” Also on the Indo-Pacific, the document says:
“The two Presidents recognize the importance of maintaining a free and open Indo-Pacific that is prosperous and peaceful, and agree to strengthen mutual cooperation across the region. In this regard, President Biden shares his support for President Yoon’s initiative to formulate ROK’s own Indo-Pacific strategy framework. President Yoon also welcomed the U.S. Indo-Pacific Strategy. The two Presidents commit to cooperate closely through the Indo-Pacific Economic Framework (IPEF)…President Yoon and President Biden also reaffirm their strong support for ASEAN centrality and the ASEAN Outlook on the Indo-Pacific. The two Presidents commit to increase cooperation with Southeast Asia and the Pacific Island Countries to promote sustainable development, energy security, and high-quality, transparent investment, including in quality infrastructure. President Biden welcomes President Yoon’s interest in the Quad, and noted complementary ROK strengths including tackling the pandemic, fighting climate change and producing critical technologies. The two leaders also agree to cooperate on infrastructure financing, including digital infrastructure, in third countries…President Yoon and President Biden reaffirm their commitment to maintain peace and stability, lawful unimpeded commerce, and respect for international law including freedom of navigation and overflight and other lawful use of the seas, including in the South China Sea and beyond. The two Presidents reiterate the importance of preserving peace and stability in the Taiwan Strait as an essential element in security and prosperity in the Indo-Pacific region. Sharing our mutual concerns regarding human rights situations in the Indo-Pacific region, both leaders commit to promote human rights and rule of law globally.”
Next, the US-Japan joint statement is much more aligned on Russia and has a specific focus on China.
“Prime Minister Kishida and President Biden called on China to stand with the international community and unequivocally condemn Russia’s actions in Ukraine. They discussed continuing actions by China that are inconsistent with the international rules-based order, including coercion by economic and other means. Noting China’s ongoing increase in its nuclear capabilities, the two leaders requested China to contribute to arrangements that reduce nuclear risks, increase transparency, and advance nuclear disarmament. They also concurred to work together to strengthen deterrence to maintain peace and stability in the region. The two leaders strongly opposed any unilateral attempts to change the status quo in the East China Sea, and reiterated their strong opposition to China’s unlawful maritime claims, militarization of reclaimed features, and coercive activities in the South China Sea; they emphasized their firm commitment to the rule of law, including the freedom of navigation and overflight, consistent with the UN Convention on the Law of the Sea (UNCLOS). Prime Minister Kishida and President Biden stated that their basic positions on Taiwan remain unchanged, and reiterated the importance of peace and stability across the Taiwan Strait as an indispensable element in security and prosperity in the international community. They encouraged the peaceful resolution of cross-Strait issues. Both leaders voiced concern over the recent PRC-Solomon Islands security agreement, which was concluded in a non-transparent manner without addressing regional voices of concern. Prime Minister Kishida and President Biden also shared serious and ongoing concerns regarding developments in Hong Kong and human rights issues in the Xinjiang Uyghur Autonomous Region. They underscored the importance of candid communication with China, including at the leader level, and expressed the intent to work with China where possible on areas of common interest…The two leaders expressed concern about the increasing activities of Russian military forces around Japan, and committed to remain attentive to cooperation between China and Russia in military affairs.”
Then there’s the launch of the IPEF. The statement and Fact Sheet for the IPEF inform that initial partners were the US, Australia, Brunei, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. It talks about “four key pillars to establish high-standard commitments that will deepen our economic engagement in the region:”
Connected Economy
Resilient Economy
Clean Economy
Fair Economy
Later in the week, Fiji joined as a founding member of the IPEF.
On Thursday then, we had Secretary of State Antony Blinken’s long-awaited China policy speech. You know, when one goes through the speech, there is call to co-exist and work together on priorities like say climate change, COVID-19, food crisis, illegal narcotics, non-proliferation, etc, “because working together to solve great challenges is what the world expects from great powers, and because it’s directly in our interest.” But I am not sure how much of that will be read as a positive in Beijing. For instance, amid the talk about co-existence, upfront is the goal to shape China’s strategic environment, and an emphasis on systems competition. For example:
“We are not perfect. But at our best, we always strive to be – in the words of our Constitution – a more perfect union. Our democracy is designed to make that happen. That’s what the American people and the American model offer, and it’s one of the most powerful assets in this contest. Now, Beijing believes that its model is the better one; that a party-led centralized system is more efficient, less messy, ultimately superior to democracy. We do not seek to transform China’s political system. Our task is to prove once again that democracy can meet urgent challenges, create opportunity, advance human dignity; that the future belongs to those who believe in freedom and that all countries will be free to chart their own paths without coercion.”
Anyway, there is some reportage about a possible Biden-Xi meeting in the offing; so let’s wait and watch on that. Meanwhile, here are some excerpts from Blinken’s speech:
“the foundations of the international order are under serious and sustained challenge…Even as President Putin’s war continues, we will remain focused on the most serious long-term challenge to the international order – and that’s posed by the People’s Republic of China.”
“China is the only country with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do it. Beijing’s vision would move us away from the universal values that have sustained so much of the world’s progress over the past 75 years. China is also integral to the global economy and to our ability to solve challenges from climate to COVID. Put simply, the United States and China have to deal with each other for the foreseeable future. That’s why this is one of the most complex and consequential relationships of any that we have in the world today. Over the last year, the Biden administration has developed and implemented a comprehensive strategy to harness our national strengths and our unmatched network of allies and partners to realize the future that we seek. We are not looking for conflict or a new Cold War. To the contrary, we’re determined to avoid both. We don’t seek to block China from its role as a major power, nor to stop China – or any other country, for that matter – from growing their economy or advancing the interests of their people. But we will defend and strengthen the international law, agreements, principles, and institutions that maintain peace and security, protect the rights of individuals and sovereign nations, and make it possible for all countries – including the United States and China – to coexist and cooperate…”
“…we cannot rely on Beijing to change its trajectory. So we will shape the strategic environment around Beijing to advance our vision for an open, inclusive international system. President Biden believes this decade will be decisive. The actions that we take at home and with countries worldwide will determine whether our shared vision of the future will be realized. To succeed in this decisive decade, the Biden administration’s strategy can be summed up in three words – “invest, align, compete.” We will invest in the foundations of our strength here at home – our competitiveness, our innovation, our democracy. We will align our efforts with our network of allies and partners, acting with common purpose and in common cause. And harnessing these two key assets, we’ll compete with China to defend our interests and build our vision for the future.”
Making this differentiation is also worth noting: “We have profound differences with the Chinese Communist Party and the Chinese Government. But those differences are between governments and systems – not between our people. The American people have great respect for the Chinese people. We respect their achievements, their history, their culture. We deeply value the ties of family and friendship that connect us. And we sincerely wish for our governments to work together on issues that matter to their lives and to the lives of Americans, and for that matter the lives of people around the world.”
On economic ties, Blinken criticised “unfair technology and economic practices” and China’s “lack of reciprocity” as “unacceptable” and “unsustainable.” But added that “The United States does not want to sever China’s economy from ours or from the global economy – though Beijing, despite its rhetoric, is pursuing asymmetric decoupling, seeking to make China less dependent on the world and the world more dependent on China. For our part, we want trade and investment as long as they’re fair and don’t jeopardize our national security.”
So how did Beijing respond to all this that’s been happening? First, Russian and Chinese bombers flew joint patrols near Japanese and South Korea air defense zones on Tuesday. The People’s Daily lashed out at Japan for acting as an American “vassal.” The paper also launched a series of articles criticising NATO for provoking wars and being a tool of American hegemony. The Chinese foreign ministry attacked the IPEF as a framework “designed to advance US geopolitical strategy. In the name of cooperation, the framework seeks to exclude certain countries, establish US-led trade rules, restructure the system of industrial chains, and decouple regional countries with the Chinese economy.” The People’s Daily called it “another attempt by the US to politicise, weaponize and ideologise economic issues.” (政治化、武器化、意识形态化).”
MOFA’s Wang Wenbin accused Blinken of going to “great length to spread disinformation, play up the so-called ‘China threat’, interfere in China’s internal affairs and smear China’s domestic and foreign policy.” He added that “the US side is completely confusing right and wrong when calling China ‘the most serious long-term challenge to the international order’. China was, is and will remain a defender of the international order.” Foreign Minister Wang Yi, meanwhile, said that:
“the US has in fact become a source of turbulence that undermines the current world order and the stumbling block hindering the democratization of international relations…We want to tell the US that China is not what the US has imagined…What we want to tell the US is that China-US ties are not a zero-sum game designed by the US, Wang said. As Chinese President Xi Jinping pointed out, whether the two countries can handle their relationship well bears on the future of the world and it is a question of the century to which the two countries must provide a good answer. Before answering the question, the US should be aware that a unipolar hegemony will find no support, group confrontation has no future, building small yards with high fences means self-isolation and backwardness, and decoupling and cutting supplies only hurt others and itself as well, Wang said. Countries can stage fair competition with each other, and it is natural that China and the US have competition, but it should not be a destructive one, Wang said. The Chinese people have the confidence and are ready to conduct a fair competition to see who can better govern their own country and who can make more contributions to the world, Wang added.”
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IV. Wang Yi's Visit to Pacific Island Countries
by Megha Pardhi
China's Foreign Minister and State Councilor Wang Yi is on a tour of Pacific Island Countries from May 26 to June 4. This is a packed tour for Wang Yi where he is visiting eight Pacific Island Countries- Solomon Islands, Kiribati, Samoa, Fiji, Tonga, Vanuatu, Papua New Guinea, and Timor-Leste. As per China's Ministry of Foreign Affairs, Wang Yi will virtually visit the Federated States of Micronesia. He is also scheduled to hold a video conference with the Prime Minister and Foreign Minister of the Cook Islands and the Premier and Foreign Minister of Niue.
[Infographic published by Global Times ]
Wang Yi’s visit comes in the backdrop of the recently concluded Quad leaders summit. The launch of the Indo-Pacific Economic Framework, and the China-Solomon Island Security Framework Agreement is an important one. China is worried about Quad-type grouping manifesting in the South Pacific. This is fear is evident in Wang Wenbin's recent press statement where he asserted that the people of the “Asia-Pacific” region will not allow “confrontation between military blocs and camps to be introduced into the Asia-Pacific region.” Wang Yi's visit is China's attempt to avoid the emergence of a Quad-like grouping in the Pacific.
A day after Wang Yi started his tour, Global Times, Communist Party of China's English Language mouthpiece, published an article arguing that China will provide South Pacific countries 'what US, Australia failed to offer. Responding to a question posed by Xinhua News Agency, Foreign ministry spokesperson Wang Wenbin outlined China's expectations from this visit: “This visit by State Councilor and Foreign Minister Wang Yi will further enhance the political mutual trust between China and these countries, elevate our cooperation in various sectors to a new level, bring new vitality to the long-term development of bilateral relations and make positive contribution to the peace, stability and development in the Asia-Pacific.
Wang Yi will also host the second China-Pacific Island Countries Foreign Ministers' Meeting in Fiji. This is the first in-person meeting of the forum since its first virtual meeting last year in October 2021.
On May 24, China released a factsheet of cooperation between China and Pacific Island Countries (PICs) ahead of Wang Yi's visit. It gives a good overview of China's engagements in the Pacific.
Some key points from the fact sheet:
China has so far established diplomatic relations with 10 countries in the Pacific.
In 2014 and 2018, President Xi Jinping made two visits to the South Pacific region and held meetings with leaders of PICs having diplomatic ties with China.
China has provided economic and technical assistance without any political strings attached, implemented more than 100 aid projects, delivered more than 200 batches of in-kind assistance, and trained about 10,000 talents in various fields.
In 2006, the two sides established the China-Pacific Island Countries Economic Development and Cooperation Forum. This is the highest-level dialogue mechanism on economy and trade between China and PICs.
In October 2021, the first China-Pacific Island Countries Foreign Ministers' Meeting was held via video link, which issued the Joint Statement of China-Pacific Island Countries Foreign Ministers' Meeting.
Other bilateral and multilateral dialogue mechanisms
Joint Economic and Trade Committee
Agriculture Ministers' Meeting
Forum on Fishery Cooperation and Development
Reserve of Emergency Supplies, Climate Action Cooperation Center
Poverty Reduction and Development Cooperation Center
Engagement with Pacific Island Forum (PIF)
1989 - China became an Official Dialogue Partner of the Pacific Island Forum (PIF).
1990 - China started sending government delegations to the Forum Dialogue Partners
October 2000 - the China-PIF Cooperation Fund was established.
Starting 1998 - financial assistance to the Secretariat of the Pacific Regional Environment Programme (SPREP).
2004 - China joined the South Pacific Tourism Organization (SPTO) (SPTO was renamed as Pacific Tourism Organization in 2019).
China-Solomon Security Cooperation Framework agreement has generated a lot of concerns among the Western countries and Indo-Pacific observers. After he visited the Solomon Islands, Wang Yi outlined three principles for China and Solomon Islands to promote security cooperation.
First, we fully respect the sovereignty of the Solomon Islands. China-Solomon Islands cooperation is based on Solomon Islands' needs and requirements, on the premise of Solomon Islands' consent, and on the basis of equal consultation. It is never China's foreign policy or the Chinese style, to impose deals on others, interfere in Solomon Islands' internal affairs, or damage other countries' interests.
Second, we help maintain the social stability of Solomon Islands. China-Solomon Islands security cooperation includes assistance in maintaining social order, protecting people's lives and property, and providing humanitarian relief and natural disaster response in accordance with the law at the request of Solomon Islands. The aim is to help Solomon Islands strengthen police capacity-building, address the security governance deficit and maintain domestic stability and lasting peace and security. China-Solomon Islands security cooperation is totally above-board . It was not imposed on anyone, does not target any third party or intends to establish a military base.
Third, the cooperation goes in parallel with regional arrangements. China supports Pacific Island Countries in strengthening security cooperation and working together to address regional security challenges. China supports the existing regional security cooperation arrangements. At the same time, China-Solomon Islands security cooperation and the existing regional arrangements complement each other, sharing the same objectives and interests. China-Solomon Islands security cooperation conforms to the common interests of Solomon Islands and the South Pacific region.
Wang Yi has also stated China's position on developing relations with Pacific Island countries. He stressed that China will continue to follow four principles when developing relations with PICs. These are:
Equal treatment.
Mutual respect.
Win-win cooperation.
Openness and inclusiveness.
Xinhua also published an eight-point consensus agreed upon between China and the Solomon Islands.
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V. Region Watch
by Shibani Mehta
Nepal’s Foreign Secretary Bharat Raj Paudyal expressed gratitude to the Chinese Government for its support of vaccines and medical supplies to the Himalayan nation during the COVID-19 pandemic. The Secretary was in conversation with Assistant Minister Wu Jianghao of Foreign Affairs at the 14th meeting of the Nepal-China Diplomatic Consultation Mechanism held last week. The press release following the virtual meeting stated that both sides underlined the need to enhance support towards people residing in bordering districts in the Northern Himalayan region of Nepal besides continuing cooperation in various regional and multilateral forums on matters of mutual interests. Certain reports, however, suggest that Beijing sent a passive reminder to Kathmandu about its commitment to the One-China Policy.
Sources told local media that the Chinese delegation did not explicitly express reservations, but it “was clear” that Beijing was concerned about a series of visits from the United States and a senior official’s recent meetings with Tibetan refugees in Kathmandu.
The US Special Coordinator for Tibetan issues Uzra Zeya visited Tibetan camps in Nepal, making the first high-level contact between the Biden administration and the Tibetan leadership. The issue of Tibetan refugees has been a thorn in Nepal’s relationship with China for decades, as Beijing views it through a security lens.
The Dalai Lama and US Special Coordinator for Tibetan Issues Uzra Zeya at the audience.(Source)
Nepal hosts around 15,000 Tibetan refugees, many of whom have not received refugee cards. This has hindered access to education, overseas travel, doing business and getting other benefits. Despite pressure from Beijing, Kathmandu has been honouring the “gentlemen’s agreement” regarding the safe passage of Tibetans to Dharamshala. Nepal also adheres to the principle of non-refoulment and does not send back Tibetan refugees to China in case they are apprehended by Nepali security forces.
Zeya’s visit was another display of America’s renewed interest in Nepal, especially after the ratification of the Millennium Challenge Corporation Nepal Compact by the Nepali Parliament. Days prior, Chinese Ambassador to Nepal Hou Yanqi had met with Home Minister Bal Krishna Khand to communicate to him that Nepal should respect the One-China policy. According to the Foreign Ministry, Nepal had no idea about the US’s meetings with the Tibetan government in exile.
The Nepal-China Diplomatic Consultation Mechanism, a critical diplomatic instrument of the bilateral relationship, “exchanged views on the BRI but there is no concrete progress on it”.
Separately, Beijing called out American interference in its domestic affairs, and Tibet’s separatist agenda.
“The 14th Dalai Lama is a political exile disguised as a religious person and engages in anti-China separatist activities and attempts to split Tibet from China,”
Chinese Foreign Ministry spokesperson Zhao Lijian said in Beijing.
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VI. Li’s Warning on the Economy
by Manoj Kewalramani
On Tuesday, it was reported that the State Council’s weekly meeting led to the announcement of 33 measures to stabilise the economy. I did a breakdown of the list of measures in my People’s Daily tracker, if you are interested. Some of the measures include:
expanding this year’s tax relief for market entities to 2.64 trillion yuan
deferred premium payments of old-age, unemployment and workplace safety insurance programs by micro, small and medium-sized enterprises (MSMEs), self-employed households and companies - the total amount of deferred payments this year will reach 320 billion yuan.
extending subsidies for hard-hit enterprises to retain employees
funds from this year's local government special bonds shall be basically utilised by the end of August, with their scope of support extended to new infrastructure and other projects
additional 150 billion yuan of emergency loans will be provided to the civil aviation industry.
local governments must fulfil their responsibilities for maintaining coal output.
support for those eligible for unemployment benefits and subsistence allowances
support for infrastructure projects, including water conservancy facilities, especially large-scale irrigation facilities, transportation facilities, renovation of old residential communities, and multi-purpose utility tunnels.
platform companies will be encouraged to list on domestic and overseas markets in accordance with laws and regulations
The interesting thing is that the report on the State Council’s meeting appeared at least a few days after the meeting apparently took place. That’s not a common occurrence. Anyway, later in the week then, Li spoke at a big teleconference on the economy. Reports say that some 100,000 people from different levels of government across the country were on the call. The official English readout from the meeting says that:
Li called for “efforts to keep the economy running within an appropriate range. Li said that various effective measures have been implemented in response to difficulties and challenges arising from unexpected factors this year. However, he said that the difficulties in March, and since April in particular, are in some respects and to a certain extent greater than those experienced in 2020 when the COVID-19 epidemic hit the country, marked by downward indicators for employment, industrial production, power consumption and cargo transportation, among others. He stressed that development is the key to solving all problems in China, and urged swift actions from now on to bring the economy back on track. Measures should be taken to fully implement China's new development philosophy, coordinate epidemic control with economic and social development in a highly efficient way, and place stabilizing growth in a more prominent position.”
He added: “More work should be done to support market entities in order to sustain employment and people's livelihoods, ensure reasonable economic growth in the second quarter, and reduce the unemployment rate as soon as possible…Local governments should treat all kinds of market entities equally, continue to smoothen logistics and industrial chains to promote work and production resumption, and ensure the timely distribution of unemployment insurance and social assistance funds to people in need. The State Council will send task forces to 12 provinces from Thursday to oversee local work in implementing state policies.”
There was also an unofficial transcript of the meeting doing the rounds on Chinese social media. Bloomberg’s report on Li’s comments in that transcript covers four specific areas:
Unemployment: Li said that economic growth must be positive in the second quarter, and the unemployment rate must drop.
Local finances: Local governments need to support the resumption of work as Covid gets under control.
Inflation: Local governments to make sure summer harvesting and stocking is conducted smoothly -- meaning the harvest can’t stop even if there is a Covid outbreak. He further emphasised this in a meeting on maintaining the summer harvest.
Energy: He called on officials to keep coal mines in operation as long as they meet work safety this summer, adding that energy would be in short supply no matter the state of the economy.
Some other key reports about the economy. First, UBS and JP Morgan cut their growth forecasts for China’s economy. UBS cut its forecast to 3%, down from 4.2% previously. JPMorgan slashed its forecast to 3.7% growth, down from 4.3%.
“In China’s bond markets, April was the third straight month of substantial outflows, data from Chinese clearinghouses show. Over the three months, foreign investors reduced their holdings by about 301.4 billion yuan, equivalent to $45.03 billion. Foreigners have been pulling out of China’s equity markets, as well, selling a net 33.2 billion yuan, equivalent to $4.9 billion, of Chinese onshore stocks through the Stock Connect trading link with Hong Kong between the start of March and Friday (May 20th). The yuan has weakened rapidly since mid-April, after trading in a narrow range for months, and for the year is down nearly 5% to about 6.69 to the dollar, according to FactSet. On May 12 it touched its weakest level in nearly 20 months, beyond 6.82 to the dollar.”
Then there is earnings data from China’s tech giants. CNBC reports:
Alibaba’s total revenue rose by 9% in the latest quarter from a year ago, the slowest on record, according to financial history accessed through Wind Information.
Tencent’s revenue for the quarter was little changed, while JD.com saw a roughly 18% increase from a year ago — both the slowest on record, according to Wind data.
Chinese tech giant Baidu’s mild 1% revenue increase was only the worst since 2020, a year that saw two quarters of revenue decline, Wind data showed.
Finally, do note that the COVID situation appears to be easing in China. Reuters reports that “Shanghai announced on Sunday further steps towards returning to more normal life and lifting a two-month COVID-19 lockdown this week, while Beijing reopened parts of its public transport, some malls, gyms and other venues as infections stabilised.”
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