Taiwan Surrounded, Yet Again
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
- Bharat Sharma (with inputs from Anushka Saxena)
India plans to wean off of Chinese military drones components
On August 8, 2023, Reuters published an exclusive report claiming that according to four defence and industry officials and documents reviewed by Reuters, India in recent months has barred domestic manufacturers of military drones from using components made in China over concerns about security vulnerabilities.
The report further adds:
The measure comes amid tensions between the nuclear-armed neighbours and as New Delhi pursues a military modernisation that envisages greater use of unmanned quadcopters, long-endurance systems and other autonomous platforms.
But as the nascent Indian industry looks to meet the military's needs, the defence and industry figures said India's security leaders were worried that intelligence-gathering could be compromised by Chinese-made parts in drones' communication functions, cameras, radio transmission and operating software.
Three of these people and some of the six other government and industry figures interviewed by Reuters spoke on the condition of anonymity as they were not authorised to talk to the media or because of the topic's sensitivity. India's defence ministry did not respond to Reuters questions.
India's approach, reported by Reuters for the first time, complements phased import restrictions on surveillance drones since 2020 and is being implemented through military tenders, documents show.
At two meetings in February and March to discuss drone tenders, Indian military officials told potential bidders that equipment or subcomponents from "countries sharing land borders with India will not be acceptable for security reasons", according to minutes reviewed by Reuters. The minutes did not identify the military officials.
India has set aside 1.6 trillion rupees ($19.77 billion) for military modernisation in 2023-24, of which 75% is reserved for domestic industry.
China’s drone story has been mired in challenges since 2020, when the in the National Defense Authorization Act for Fiscal Year 2020, the US Congress banned the Department of Defense from purchasing and using drones and components manufactured in China. In December 2020, the Department of Commerce added DJI Technology, China’s largest drone exporter and civilian drones manufacturer, to its “Entity List” for its role in supporting China's human rights abuses.
Now, as China’s ever-expanding relationship with Russia and its neutral position on the invasion of Ukraine is under the radar, in early August this year, China has imposed restrictions on exports of long-range civilian drones, citing Russia’s war in Ukraine and concern that drones might be converted to military use.
The Ukrainian government appealed to DJI in March 2022 to stop selling drones it said the Russian ministry was using to target missile attacks. DJI rejected claims it leaked data on Ukraine’s military positions to Russia.
19th Corps Commander Level Dialogue
The 19th round of Corps Commander-level dialogue and Major-level talks between India and China occurred last week. The dialogue focused on achieving disengagement at the remaining friction points in eastern Ladakh. At the 18th round of the military dialogue, the two sides discussed de-escalation and legacy issues of the Despang plains and Demchok.
The joint statement released after the meeting said that “the two sides had a positive, constructive and in-depth discussion on the resolution of the remaining issues along the [Line of Actual Control] in the Western Sector.” It also said:
“They also agreed to resolve the remaining issues in an expeditious manner and maintain the momentum of dialogue and negotiations through military and diplomatic channels. In the interim, the two sides agreed to maintain the peace and tranquillity on the ground in the border areas”
Then, two Major-level talks concerning the Corps Commander-level talks were held at Daulat Beg Oldie and Chushul on August 18th. According to sources, the talks had similar aims as the Commander-level talks – to resolve existing issues at the Despang Plains and Demchok along the Line of Actual Control (LAC), and intended as a follow-up.
Such dialogues occur in the context of the upcoming BRICS Summit, which is scheduled to be attended by President Xi and Prime Minister Modi. President Xi is also scheduled to visit India for the G20 Summit.
Foreign Minister Comments on India-China Border Dispute
Speaking to a group of journalists, Foreign Minister S. Jaishankar spoke about the progress of the Sino-Indian border dispute, and infrastructure development along the Line of Actual Control (LAC).
He said that “good progress” had been made on key tension points along the LAC in the last three years, and that diplomatic talks regarding the dispute were in progress. He mentioned that the government was taking steps to boost border road connectivity and overall infrastructure development, and that the armed forces were now in a better place to deploy troops in the region.
Regarding infrastructure development, Jaishankar further commented that the development would determine India’s response to national security challenges.
Regarding talks between Bhutan and China concerning their bilateral border dispute, Jaishankar said:
As far as the Bhutan-China talks are concerned, they are having negotiations, and 24 rounds have been completed. They will be holding more rounds. We track carefully what affects [India]. It is for them to determine the pace.
BRICS Expansion on Agenda at Summit in Johannesburg
The BRICS grouping – composed of Brazil, Russia, India, China, and South Africa – is expected to meet on August 22-24 for its summit in Johannesburg.
Expansion of the grouping is expected to be discussed at the meeting between the respective Heads of State. According to Bloomberg, 22 nations have formally expressed interest in joining the block.
India and Brazil are reportedly pushing back against a China-led bid to expand BRICS, given the possibility that the expansion might dilute the two countries’ influence within the grouping. So, the two countries instead are interested in keeping potential joiners as ‘observer’ states.
Concerning the expansion, China’s foreign ministry said that the BRICS leaders’ meeting last year authorised the expansion of membership, and that the grouping already possessed political consensus regarding the expansion, to include new members into BRICS.
Responding to a question about the expansion, India’s Ministry of External Affairs (MEA) spokesperson reiterated that BRICS should be expanded through “full consultation and consensus” among bloc members. He added that:
“We have talked about India’s position on expansion, we have clarified our position in the past. As mandated by the leaders last year, [BRICS] members are internally discussing the guiding principles, standards, criteria and procedures for the [BRICS] expansion process on the basis of full consultation and consensus.”
The spokesperson also denied that India was opposed to the BRICS expansion, and said “[India was] approaching this with an open mind and a positive outlook”.
A spokesperson from Russia’s foreign ministry said that Russia believed “in one form or another” that the expansion would contribute to “further development and strengthening of [the] organisation”. The spokesperson, however, did not directly take a stance regarding the expansion.
Before we go further: The Takshashila Institution has recently launched a newsletter called the ‘Quad Bulletin’, which attempts to track the developments pertaining to the Quad grouping – US, India, Japan, and Australia – and use insights from those developments to understand larger dynamics of the Indo-Pacific region.
As part of the newsletter, we focus on two broad verticals: tracking regional capability enhancement by Quad actors, and diplomatic discourse around the Quad, an entity operating in conjunction with other regional actors in the global arena.
Subscribe and share!
Section B: Economy and Tech
- Amit Kumar
Chinese provinces offer support to SOEs to hire more graduates
The youth unemployment rate in China has risen past 21 percent. The extent of the job crisis has been such that the government has announced that it would stop publishing unemployment figures.
Amidst the crisis, a few provinces have urged state-owned enterprises to hire more college graduates, reports SCMP. It added:
The youth jobless rate reached 21 per cent in June…The problem is compounded by record numbers of college graduates entering the job market in recent years, rising past the 11 million mark this year, prompting the government to mobilise resources in the hope of creating more jobs for the new labour market.
Among the measures taken, the authorities in two provinces – Anhui and Guizhou – have asked state-owned enterprises to ensure that at least half of their new recruits are fresh graduates.
Meanwhile, in the central province of Hunan, graduate recruitment has been added to the annual performance appraisals for executives at state companies.
These firms have been told that the number of graduates hired this year must exceed last year’s totals “by a certain extent”, while state-owned enterprises directly supervised by the provincial government must hire at least 4,700 graduates.
The State Council, the country’s cabinet, said in April that companies will be given a one-off payment – usually 1,000 yuan (US$138) – for each job they give to a graduate who has been out of work for more than two years, or youths who are registered as unemployed.
Guangdong, the economic powerhouse of southern China, said last week that it will provide subsidies, ranging from 5,000 to 10,000 yuan to companies that offer both jobs and internships in selected parts of the province.
Guizhou also offers preferential treatment in areas such as research funding and professional appraisals to state firms which are able to offer more jobs for graduates this year compared with 2022.
China imposes $1.5 million fine on US due-diligence firm Mintz citing malpractices
In a notice dated July 14 that has now come to light, China’s National Bureau of Statistics published an attachment of a ruling on July 5 that confirms that the authorities have imposed roughly $1.5 million in financial penalties on the Beijing arm of Mintz Group for allegedly conducting unapproved statistical work, according to a report by the Wall Street Journal.
In March, Chinese authorities raided the office of the Mintz Group in Beijing and detained five of its Chinese employees. The functioning of foreign due diligence and consultancy firm operating in China has come under scrutiny, especially since the unveiling of the counter-espionage law in July. The law seeks to maintain strict oversight on the kind of information collected by consulting firms and the means employed on national security grounds.
Explaining the decision by the Chinese authorities, The WSJ reported:
Mintz allegedly engaged in unapproved foreign-related statistical investigations across 37 projects conducted from March 2019 to July 2022, according to the ruling, which didn’t give details on the nature of such investigations. The ruling was published by the Beijing statistics bureau as an attachment to a notice—dated July 14—on its website.
The bureau had published the notice under a vague title without explicitly mentioning Mintz, referring only to the delivery of a decision on administrative penalties.
It wasn’t clear whether the financial penalties marked a resolution to the government probe against Mintz. In March, China’s Foreign Ministry said the company was suspected of conducting “illegal business operations.”
While Beijing has in the past tolerated the corporate investigations business, authorities have put the industry under greater scrutiny in the decade since Chinese leader Xi Jinping took power. China has increasingly limited access to business data in recent years, often invoking concerns over threats to national security.
In the July 5 ruling, the bureau ordered Mintz to cease its “foreign-related investigations” and imposed about 10.7 million yuan, or about $1.5 million, in administrative penalties on the company—half in confiscated illegal proceeds and the other half in fines. The case originated from evidence provided by a “public-security department,” according to the ruling.
China’s Ministry of Industry and Information Technology mandates app providers to submit business details
China’s Ministry of Industry and Information Technology (MIIT) on August 15 issued a notice requiring all mobile app developers to submit their business details to the government. It said that failure to register details would invite punishment. The developers have time until March next year to fulfill this new requirement.
Developers and analysts believe that the new measure will stifle local innovation and hinder access to advances created overseas, the SCMP reported. It added:
The MIIT, which indicated that the new regulation aims to clamp down on rampant scams online, said operators of all apps – including mini-programs distributed via so-called super apps like Tencent Holdings’ WeChat and Ant Group’s Alipay – must file a range of information that comprise details about the app and its provider.
The filing process, which could take up to 20 days, would prevent local providers from doing quick launch and rapid iteration.
It is a common practice for developers to initially test the market by doing a soft launch of their app idea and then turn around with a full-fledged iteration of the software based on user feedback.
The MIIT’s latest initiative highlights how the Chinese government continues to keep all online content on a short leash via rigid measures.
The Cyberspace Administration of China, for example, vowed to clamp down on disorder in every part of the internet, from app search and rankings to downloads and usage, according to new guidelines that it published last December.
It further added:
There has been a public outcry by other independent developers on social media site X.com. Two developers have lodged a complaint to the State Council that MIIT’s latest regulation might impede the development and growth of the private sector, according to a post published last Wednesday.
The total number of apps in China – an indicator of the health of the country’s digital economy – has already declined in the past few years. Following Beijing’s regulatory crackdown on the major internet firms, there were 2.6 million apps operating in China last year, which was down 25 per cent from the 3.5 million total in 2020.
China to make steady progress in attaining self-sufficiency in less advanced chip equipment: UBS survey
The UBS Securities in a research has claimed that China’s chip equipment self-sufficiency rate will keep increasing in the next few years, especially in the less-advanced equipment sector, amid a gradual market recovery and ongoing geopolitical tensions, according to a SCMP report. It added:
The semiconductor equipment self-sufficiency rate is expected to increase in less-advanced sectors which account for around 70 per cent of the total market, such as etching and cleaning machines, Jimmy Yu, a China technology analyst at UBS Securities, said at a media briefing in Shanghai on Wednesday. Yu added that domestic companies may capture a market share of around 60% going forward.
Meanwhile, China still accounts for a relatively lower proportion of the global market for chip design, Yu said. But he added that nearly half of chip buyers in the country have signalled increasing willingness to raise their usage of domestically-developed chips.
According to the UBS survey, 11 per cent of the integrated circuit (IC) product purchasing managers said that they are “much more” actively considering using domestic chips compared with two years ago, while 39 per cent said they are “a little more” willing to do so.
“Looking forward to the next three years, the adoption rate of domestically-developed chips will gradually increase to between 30 and 50 per cent, which is quite high,” said Yu.
In July, China’s integrated circuit output rose 4.1 per cent to 29.2 billion units, marking the fourth consecutive month of positive growth. However, the IC output in the first seven months was still down 3.9 per cent from the same period of last year, reflecting that the world’s largest semiconductor market continues to struggle with economic headwinds and escalating tech rivalry between Washington and Beijing.
Chinese authorities tank Intel’s Tower acquisition plan
After US chip maker MaxLinear’s failed to go ahead with its acquisition of Taiwanese semiconductor firm Silicon Motion last month, Intel has met a similar fate with its Tower acquisition plan.
The SCMP reports on the issue:
Intel has cancelled its plans to buy Israeli foundry Tower Semiconductor after the deal failed to get approval from Chinese regulators ahead of a final deadline amid souring Sino-US relations.
The American tech giant on Wednesday terminated its deal to acquire Tower for US$5.4 billion “due to the inability to obtain in a timely manner the regulatory approvals required under the merger agreement”, the company said.
Beijing requires mergers involving companies with a major business presence in China to be approved by the State Administration for Market Regulation (SAMR), the antitrust regulator.
Based on the terms of their agreement, Intel said it would now pay a walkaway fee of US$353 million to Tower.
Intel’s failure to obtain Chinese approval for its deal underscores the pressure faced by US semiconductor companies amid worsening geopolitical tensions. China’s review authority over global mergers and acquisitions is one tool that Beijing could use to retaliate against Washington’s export restrictions on advanced chip technology.
Updates to US export controls last October effectively ban the shipments to China of any sufficiently advanced chips or chip-making equipment without explicit approval. The US Chips and Science Act, signed into law last year, banned American companies receiving chip funding to build leading-edge chip factories in China for 10 years.
Last month, mainland Chinese regulators approved US chip maker MaxLinear’s multibillion-dollar purchase of Taiwanese semiconductor firm Silicon Motion.
However, the approval came with additional conditions, including a requirement for MaxLinear and Silicon Motion to continue supply of NAND flash memory chips to China in a “fair, reasonable and non-discriminatory manner”. MaxLinear ultimately chose to terminate its purchase of Silicon Motion.
China is one of Intel’s largest markets. The company also houses several factories there. Intel has been walking a fine line trying to balance business interests on both sides of the Pacific. Intel CEO Patrick Gelsinger made two visits in three months to China, reportedly to persuade the Chinese authorities to approve the Tower acquisition. Intel recently also announced the launch of “Innovation Hub’ in Shenzhen. Perhaps, the quid pro quo wasn’t appealing enough to the Chinese.
Section C: Military Developments in China
- Anushka Saxena
To begin with, in the past three days, the Eastern Theater Command of the Chinese People’s Liberation Army has launched joint air and sea patrols and live fire exercises around the island of Taiwan.
These are being undertaken as China’s angered response to Taiwanese presidential front runner William Lai Ching-te’s stopover in the US on his visit to Paraguay. The purpose of his visits was to promote his candidature and reaffirm his commitment to Taiwan’s diplomatic partnerships ahead of the national election on the island in January 2024.
Beijing accused Lai of “leaning on the United States” and “colluding with external forces” to promote Taiwanese independence, while the PLA staged joint air and naval combat readiness patrols around the island on Saturday as a “warning to Taiwan separatists”.
The Global Times reported on the matter:
Marking the PLA's third major countermeasure operation against collusion between "Taiwan independence" secessionist forces and external interference forces since last August, the latest exercises shows that secessionist attempts will never succeed and will only sabotage peaceful future of the island, analysts said.
Between Saturday morning and Sunday morning [19-20 August, 2023], armed forces on the island of Taiwan detected 45 PLA aircraft and nine PLA vessels around the island, with 27 of the detected aircraft including Su-30, J-11 and J-10 fighter jets, a Y-9 command and control aircraft and a Z-9 anti-submarine warfare helicopter crossed the so-called median line of the Taiwan Straits or entered the island's self-proclaimed southwest air defense identification zone, the defense authority on the island said in a press release on Sunday.
The report on the sudden significant increase in PLA activities around the island came after the PLA Eastern Theater Command on Saturday announced it had launched a sea and air joint combat readiness alert patrol and joint training exercises involving naval and aviation forces on Saturday.
In a move to test the troops' actual capabilities in joint operations, the exercises focus on training subjects including vessel-aircraft integration, seizing control and anti-submarine warfare.
Working with support from multiple intelligence sources, these combat platforms [which included including multiple Navy destroyers, frigates and missile boats, formations of Air Force fighters, bombers, early warning aircraft and electronic warfare aircraft, as well as conventional missiles from the PLA Rocket Force siloes] operated as a system and coordinated with each other according to their missions, as they arrived in designated waters and air spaces around the island of Taiwan as planned, the PLA Eastern Theater Command said.
Since August of last year, when the-then US House Speaker Nancy Pelosi visit Taipei, China has launched three such short-term, high intensity campaigns against Taiwan. One came with Pelosi’s visit, and the second, with Taiwanese President Tsai Ing Wen’s visit to Guatemala and Belize, during which, she made a ‘transit stopover’ in the United States.
Before this, on August 1, 2023, the People’s Daily reported that the Central Military Commission of the PLA has issued a document titled "Opinions on Comprehensively Strengthening the Party Building of the Army Around the Realization of the Centenary Goal of the Army."
Even though the text of the document itself has not been released, reportage on the subject says:
"The Opinions" take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guiding ideology. It fully implements the spirit of the 19th National Congress of the Communist Party of China and deeply carries out Xi Jinping's thinking on strengthening the military.
It implements the overall requirements for Party building in the new era, upholds the Party's absolute leadership over the people's armed forces, focuses on the central task of military construction, provides deployment and requirements for comprehensively strengthening the Party building in the military, guides the entire military to deeply understand the decisive significance of "two consolidations," enhances the "four consciousnesses," strengthens the "four confidences," and ensures "two upholds."
It implements the system of the Chairman of the Central Military Commission assuming overall responsibility, and opens up a new phase of the Party's leadership and Party building work in the new era and on the new journey of the military.
Further, the text of the ‘Opinions’ lays out the following instructions for the military apparatus of the country:
The institutionalization of regular political training should be promoted, and political judgment, political comprehension, and political execution should be enhanced. The focus should be on improving the quality and effectiveness of leadership in preparing for war, strengthening the unified leadership of the Party committee, focusing on real combat training, enhancing strategic planning and command capabilities, deepening military training and preparedness, and strengthening military governance.
Reform and innovation should be promoted to drive high-quality development. The Party's organizational line in the new era should be implemented, and the political and organizational functions of Party organizations should be strengthened.
Emphasis should be placed on strengthening the grassroots, consolidating the foundation, forging a high-quality and professional cadre and talent team, strengthening the active role of Party members, and enhancing the organizational system of the Party in the People's Liberation Army. The requirements for comprehensively governing the Party strictly should be implemented.
The political responsibility for Party governance should be firmly tightened and implemented, with a firm commitment to strictness. Vigorous efforts should be made to address the "Four Winds," especially formalism and bureaucracy. Efforts should be made to prevent, combat, and reject corruption as a whole, providing a strong political guarantee for achieving the centenary goal of building the military.
Lastly, celebrating the 96th anniversary of the founding of the PLA, China released an 8-part docuseries titled ‘Chasing Dreams’ to depict the successes of the PLA in the past few years.
An interesting aspect of the docuseries was the revealed details of China’s experimentation with drone autonomy.
On August 6, the Global Times reported:
China recently unveiled a number of unmanned intelligent technologies, including a drone swarm system capable of "self-repair" and an augmented reality (AR) interaction system that allows individual infantry soldiers to control multiple unmanned aircraft or vehicles.
According to the documentary, after having drones train themselves autonomously and gain intelligence through millions of offline simulations plus hundreds of real in-air flights, researchers at the PLA's National University of Defense Technology have developed a type of drone swarm that can auto-correct, or "self-repair," when disrupted.
Through autonomous networking and coordination, intelligent algorithms installed on individual drones can form a powerful hive mind, which provides stability and anti-jamming capabilities to the swarm, Xiang Xiaojia, a researcher at the National University of Defense Technology, said in the documentary.
Another technological system developed by the PLA's Academy of Military Sciences, named the Integrated Intelligent Interaction System, is being trialed in basic-level units, the documentary said.
Featuring a helmet and an intelligent glove, the system enables a single infantry soldier to simultaneously control multiple unmanned aircraft or vehicles and carry out unmanned integration operations, Xie Xin, a researcher at the Academy of Military Sciences, said in the documentary.
Intelligentization in the PLA is a significant aspect of the overall military reforms being undertaken by the party-state. Autonomy of unmanned systems has become both a policy priority in this regard, and a subject of constant technical and ethical deliberation across academic institutions, think tanks, and wings of the armed forces.
To read more on developments concerning Chinese military forces, please refer to :
Spacebattles (a more informal channel for public discussions).
Section D: Foreign Policy Watch
- Kingshuk Saha
President Xi Jinping will attend the 15th BRICS Summit
President Xi Jinping at the invitation of South African President Cyril Ramaphosa will be on a state visit to South Africa from 21 to 24 August during with he will attend the 15th BRICS Summit.
Chinese President Xi Jinping will attend next week's summit of the BRICS nations in Johannesburg, to be followed by a state visit to South Africa, the Foreign Ministry said on August 18.
Foreign Ministry spokesperson Hua Chunying also said in a statement that during his August 21-24 visit to South Africa, Mr Xi will co-chair the China-Africa Leaders' Dialogue with his South African counterpart, Cyril Ramaphosa.
China is a core member of the BRICS nations, which also include Brazil, Russia and India. The grouping was predicated on linking the interests of the world's leading emerging economies but has sought to expand into other civil and governmental fields.
Russian President Vladimir Putin has decided not to attend the summit because of an arrest warrant issued by the International Criminal Court for him, according to South African authorities.
The development could be viewed as embarrassing for Mr Putin, who is expected to be the only leader of a country in the bloc not to attend. Kremlin spokesperson Dmitry Peskov said M. Putin “has decided to take part” in the summit via video link, without confirming if he had intended to attend in person. The BRICS summit is the first to be held in person since 2019 and comes as the bloc seeks new relevance amidst Russia's war in Ukraine, South Africa's crashing economy and sharpening competition between Asian giants China and India.
Brazilian President Luiz Inácio Lula da Silva has said that he supports more countries joining the group and intends to raise the topic at the summit. Around 20 countries have formally applied to join, Brazilian Foreign Affairs Minister Mauro Vieira said following the comments by Lula, who since taking office has repeatedly bucked the existing Western-dominated international structure.
Wang Wenbin, Chinese Foreign Ministry spokesperson, said: “BRICS had been taking on increasing international influence. China looks forward to working with South Africa to jointly pursue development and revitalization and make a positive contribution to a multipolar world and greater democracy in international relations.”
Non-resident senior fellow at the Atlantic Council, Hung Tran, commented on the upcoming summit: “Brics could evolve to become a counterpart to the Group of Seven (G7) in world affairs, resulting in a profound impact on international relations. Whether this is positive or negative depends on whether China’s or India’s approach prevails.”
Xi Jinping's decision to participate in the BRICS summit highlights its importance for China. As this is the first in-person summit after COVID-19 and new members may be inducted into the block. China has been a strong advocate of enlarging the block as a counterweight against the western dominated global order as its schism with the U.S deepens.
Chinese defense minister visits Belarus
Chinese State Councilor and Defense Minister General Li Shangfu, at the invitation of Belarusian Defense Minister Viktor Khrenin, was on a state visit to Belarus from 16 to 19 August.
The Belarusian Telegraph Agency Reports:
China and Belarus share the same vision of the world order, Belarusian President Aleksandr Lukashenko said as he met with Chinese State Councilor, member of the CPC Central Military Commission and Minister of National Defense Colonel General Li Shangfu in Minsk on 17 August.
At the start of the meeting, the head of state warmly welcomed Li Shangfu to Belarus, calling him the world's most media person. “I have a reason to start our conversation by calling you the world's most media person today. Your work and the efforts of the People's Republic of China to promote its interests, and the main ideas on the world order are heard by the entire world today. China and Belarus share the same main ideas of the current and future prospective world order. We, together, have been demonstrating this for the past three decades,” Aleksandr Lukashenko said.
“We are absolute supporters of a multipolar world, territorial integrity and unity of the borders and territories formed after World War II. We stay committed to non-interference in the internal affairs of states. In short, the whole palette on which China's foreign policy is based is similar to ours. You should know that for more than 30 years we have always supported China in all its aspirations because we consider the domestic and foreign policy of the People's Republic of China fair, aimed at peaceful resolution of any disputes and conflicts,” the Belarusian leader emphasized.
In turn, Li Shangfu conveyed the best wishes and warm greetings to Aleksandr Lukashenko on behalf of the president of the People's Republic of China. He praised Belarus' great successes in its development and the role of the Belarusian head of state in this. “Let me express my sincere and deep respect for your high contribution to peace and development in the world,” the Chinese defence minister said.
Belarusian political scientist, Valery Karbalevich, said: “With this visit, China marks the scope of its military interests and shows that it is interested in building up ties with Minsk and Moscow, including military cooperation, despite the dissatisfaction of Western countries.”
Li Haidong, a professor at the China Foreign Affairs University said: “Strengthening military cooperation between China and Belarus would help resolve crises not only in Europe and Eurasia but also in the Pacific and Atlantic regions in a constructive manner when they occur, offering different ways to resolve them than in a biased and coercive manner that discriminates against and pressures non-Western countries.”
Belarus under its tinpot dictator Lukashenko is being ostracised and imposed with sanctions by the Western world for its role in supporting Russia in the Ukraine War. The relationship with China provides it with economic and military partnerships in the face of its growing isolation and provides China with an ally in Eastern Europe.
Chinese Defense Minister Li Shangfu attends Moscow security conference
Chinese State Councilor and Defense Minister General Li Shangfu, at the invitation of Russian Defense Minister Sergey Shoygu, was on a state visit to Russia from 14 to 16 August to attend the 11th Moscow Conference on International Security (MCIS).
Chinese State Councilor and Minister of National Defense Li Shangfu on Tuesday attended the 11th Moscow Conference on International Security in Moscow, where he delivered a speech and lauded China-Russia military relations as a model of non-aligned, non-confrontational cooperation that does not target any third party.
Open and transparent military cooperation between China and Russia is conducive to peace and stability around the world, experts said. Li said that the comprehensive strategic partnership of coordination for a new era has maintained steady development, as the two countries military relations have set a model in non-alignment, non-confrontational cooperation that does not target any third party, Russian news agency Sputnik reported on Tuesday.
China is ready to conduct joint exercises and drills with all countries to search for a wider area of exercises, strengthen international cooperation on arms control and nuclear non-proliferation, as well as boost international cooperation in space, bio-security, artificial intelligence technologies and other new challenges beyond traditional security fields, Li said.
Organized by the Russian Defense Ministry, the theme of the security conference is the establishment of cooperation in the new realities arising in the process of establishing a multipolar world order, Russian news agency Tass reported on Tuesday.
Senior Colonel Wu Qian, spokesperson for China's Ministry of National Defense said: “The cooperation between the Chinese and Russian militaries is "completely different from the practices of some other countries that cling to the Cold War mentality, engage in camp confrontation and bully hegemony everywhere.”
Cui Heng, an assistant research fellow from the Center for Russian Studies of East China Normal University, commented on the visit: “There is nothing wrong with China-Russia cooperation, and the West's opposition to it reflects the hegemonic thinking of the West and their forcing of other countries to take sides.”
Li’s visit shows the robust and deepening of strategic relations between Beijing and Moscow despite the ongoing Ukraine war that has isolated Russia globally. This is Li’s second visit to Russia after assuming the role of defence minister and weeks after the joint Chinese Russian naval exercise off the coast of Alaska.
US invites new Chinese foreign minister to Washington
The U.S. formally invited Wang Yi, China’s newly re-appointed Foreign Minister, to visit the country. The invitation was previously extended to Qin Gang before his ousting from the post.
The U.S State Department spokesperson Matthew Miller said: “The invitation to Wang was extended on Monday during a meeting at the State Department between US Assistant Secretary for East Asia and Pacific Affairs Daniel Kritenbrink and Yang Tao, Director General of the North American and Oceania Affairs at China’s Foreign Ministry. In the meeting yesterday, we extended the invitation that had previously been made to foreign minister Qin Gang and made clear that the invitation did transfer over.”
The United States has formally invited China’s newly reappointed foreign minister, Wang Yi, to Washington, the US State Department said on Tuesday after Wang’s predecessor was abruptly removed from his post by Beijing.
China reappointed veteran diplomat Wang last week, replacing former rising star Qin Gang, who has not been seen for more than a month – a mysterious absence after just seven months in the job that has raised questions about transparency.
China’s foreign ministry has only said Qin was off work for unspecified health reasons. US Secretary of State Antony Blinken met Qin on June 18, on the first visit by America’s top diplomat to China in five years.
The US State Department said then they held “candid, substantive, and constructive” talks, and Blinken invited Qin to Washington to continue discussions. Blinken subsequently met Wang on the sidelines of a regional meeting in Jakarta in Qin’s absence.
Wang, 69, served as foreign minister from 2013-2022 as ties frayed with the United States to a point Beijing described as an all-time low.
The invitation to visit the U.S. to Wang is a routine diplomatic exercise however it is significant as the relationship between China and U.S. is strained. With Wang a seasoned diplomat at the helm it is expected there will be greater interaction between the two countries in resolving their differences.
Georgian PM Visits China
Georgian Prime Minister Irakli Garibashvili was on a seven-day state visit to China from 26 July to 1 August.
China and Georgia on Monday signed documents on cooperation under the framework of the Belt and Road Initiative (BRI), following a meeting between Chinese Premier Li Qiang and Georgian Prime Minister Irakli Garibashvili in Beijing.
During the visit of Garibashvili, who also attended the opening ceremony of the 31st summer edition of the FISU World University Games in Chengdu, China and Georgia issued a joint statement on establishing a strategic partnership.
During Monday's meeting, Li called on the two sides to focus on the BRI, make good use of the intergovernmental committee on economic and trade cooperation and other mechanisms, and fully unleash the dividends of the China-Georgia Free Trade Agreement.
Both sides should strengthen cooperation in cross-border e-commerce, infrastructure construction, special economic zones and industrial parks, expand cooperation in emerging areas such as digital economy and green energy, and strengthen cultural, tourism and sub-national people-to-people exchanges, Li said.
China is ready to work with Georgia to implement the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative, promote the building of a community with a shared future for mankind, and make due contributions to world peace and development, Li said.
Garibashvili said Georgia attaches great importance to its friendship with China and is committed to strengthening cooperation with China, adding that upgrading bilateral relations to a strategic partnership will benefit the two peoples.
After their meeting, Li and Garibashvili witnessed the signing of a number of bilateral cooperation documents, including on the BRI, digital economy, intellectual property and education.
Kakha Kaladze, Mayor of Tbilisi said: “The Prime Minister had a very important visit. It’s important to further deepen the relations between Georgia and China. There are great opportunities in terms of economic development for investments to come to Georgia. Georgia and Georgian people will get even more benefits. This visit is important for our country and its future.”
The week-long visit by Garibashvili to China highlights the strengthening of the relations between both countries. With the decline of Russian influence, China is emerging as an important player in the Caucasian region. China is Georgia's fourth largest trading partner and its increasingly strained relations with the West have deepened the relationship further between them.
Chinese Vice Premier Visits Pakistan
Chinese Vice Premier He Lifeng was on a three-day state visit to Pakistan from 30 July to 1 August, to attend a ceremony to commemorate the tenth anniversary of the China-Pakistan Economic Corridor (CPEC) project.
Prime Minister Shehbaz Sharif said on Monday that China Pakistan Economic Corridor (CPEC) — part of Beijing’s Belt and Road Initiative — was entering its second phase, but there were efforts by some countries to “bypass Pakistan in this process of connectivity”. he said while addressing a ceremony held to mark 10 years of CPEC.
Chinese Vice Premier He Lifeng, who arrived in Pakistan yesterday for a three-day visit, attended the ceremony as the chief guest. Earlier today, President Arif Alvi conferred Pakistan’s second-highest civil award, Hilal-i-Pakistan (Crescent of Pakistan), on Lifeng during an investiture ceremony held at Aiwan-e-Sadar in Islamabad.
The award was given to the Chinese dignitary to honour his role in the promotion of bilateral ties between Pakistan and China. The ceremony was attended by PM Shehbaz and other civil and military leaders. Lifeng also met Chief of Army Staff Gen Asim Munir, with the military’s media affairs wing saying matters of mutual interest and defence cooperation were discussed between the two.
China and Pakistan signed six agreements for the promotion of bilateral cooperation. The event was attended by PM Shehbaz, the Chinese vice premier, Foreign Minister Bilawal Bhutto-Zardari, Planning Minister Ahsan Iqbal and other foreign dignitaries.
Yasir Habib Khan, President of the Institute of International Relations and Media Research commented on the visit: “Before the launch of the CPEC, a signature project of the BRI envisaged by China, Pakistan was striving for economic survival, languishing in an energy crisis, with poor infrastructure and financial challenges. As a silver lining, the CPEC came to the rescue. Within 10 years, the initiative was transforming Pakistan and bringing prosperity.”
Senator Mushahid Hussain, the chairman of the defense committee of the upper house of the Pakistani parliament, said: “Recurring expressions of concern about the safety and security of Chinese citizens and investors in Pakistan by top Chinese leaders indicate that Pakistan's promises of 'foolproof security' for Chinese working in Pakistan have yet to be fulfilled.”
The visit by Lifeng to Pakistan to attend the tenth anniversary of CPEC shows China’s intention to continue despite the slowing pace of the project due to Pakistan's political instability and economic crisis.
Section E: Chinese Domestic Politics
- Anushka Saxena
To begin with, the dates for the next session of the Standing Committee of the 14th National People’s Congress have been announced.
This fifth session for the 14th NPCSC is scheduled from August 28 to September 1 in Beijing, and this decision was made at a meeting of the Council of Chairpersons of the NPCSC, which was presided over by its Chairman, Zhao Leji.
According to the proposed agenda, lawmakers at the session will review draft revisions to the administrative reconsideration law and the company law, a draft law on foreign countries' state immunity, and a draft law on value-added tax, as well as a draft amendment to the civil procedure law.
The NPC Standing Committee session is also expected to review bills on draft laws on preschool education and on academic degrees respectively, a bill on a draft revision to the law on public security administrative penalties, and a bill on a draft decision regarding extending the authorization for the State Council to carry out a pilot program that enables law practitioners from Hong Kong and Macao to practice law in certain cities on the mainland.
The legislators will also review a bill on the ratification of an extradition treaty with Ecuador.
Other documents to be submitted at the session include reports on the implementation of the national economic and social development plan and on the implementation of this year's budget.
Before this, on August 16, the State Council held its second plenary meeting, which was presided over by Chinese Premier Li Qiang.
Presiding over the second plenary meeting of the State Council, the cabinet, Li said that the government will fully implement the policy decisions and arrangements of the Communist Party of China Central Committee, seek progress while maintaining stability, accurately and forcefully implement macro-control measures, and harness the synergy between various policies.
During the meeting, Li emphasized expanding domestic demand by further tapping into the potential of consumption and pro-investment policies, promoting the consumption of big-ticket items, and mobilizing private investment.
Efforts should be made to build a modern industrial system, accelerate the transformation and upgrading of traditional industries with new technologies and business models, vigorously promote the development of strategic emerging industries, and comprehensively accelerate the pace of manufacturing-sector digitization, Li said.
Additionally, according to the premier’s instructions, efforts are to be made to deepen reforms and further opening up, implement a new round of reforms of state-owned enterprises, improve the development environment for private enterprises, stabilize the scale and optimize the structure of foreign trade, and better attract and utilize foreign capital.
Li further stressed promoting the coordinated development of urban and rural areas by deeply implementing the new-type urbanization and rural revitalization strategies and consolidating poverty alleviation achievements.
He said efforts would be made to prevent and defuse severe risks by substantively removing these risks in primary areas.
The second plenary also discussed methods for preventing and reducing disasters and supervising production safety. Li said efforts will be made to promote post-disaster recovery, conduct in-depth investigations into and rectify the hidden dangers in production, and ensure the safety of people's lives and property.
Overall, the plenary, which was meant to lay down the work of the State Council for the year left, highlighted the four key economic challenges China is looking to buckle up on: Domestic consumption and employment, stability of private sector, foreign trade, foreign capital/ Investment.
Finally, on August 21, the State Council issued the ‘Decision on Amending and Repealing Some Administrative Regulations’ (State Decree No. 764).
The regulations that are amended under this decision include "Regulations of the People's Republic of China on International Maritime Transport,” "Regulations of the People's Republic of China on Certification and Accreditation,” “Securities Law,” "Regulations on the Administration of Sand Mining in the Yangtze River Channel,” "Registration Measures for Adoption of Children by Chinese Citizens,” and “Tobacco Monopoly Law.”
A QnA conducted by a representative from the Chinese Justice Ministry on what the amendments entail can be perused here.
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: Bharat Sharma
Economy and Tech: Amit Kumar
Military Developments in China: Anushka Saxena
Foreign Policy Watch: Kingshuk Saha
Chinese Domestic Politics: Anushka Saxena
