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541. Contradictions Within The PRC’s Climate Strategy

Author:
Arran Hope
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The 28th Conference of the Parties of the United Nations Framework Convention on Climate Change (COP28) drew to a close earlier this week (UNEP, December 13). The COP meetings always produce a mixture of successes and disappointments, and only constitute a portion of the myriad processes that impact the global energy transition and race to stabilize the planetary system. This year’s conference was no different. The People’s Republic of China (PRC) was actively engaged throughout, hosting a variety of events at their pavilion reflecting the breadth and depth of the country’s critical engagement with the issues (National Climate Strategy Center, November 28). However, the PRC’s is still appraised as falling far short of what is required to meet the Paris climate goals and is not commensurate with its position in the international system (Climate Action Tracker, November 22). This year, the PRC ranks first in the world for total annual emissions, and second in both cumulative (historical) emissions and GDP. Meanwhile, it has failed to advance its ambitions or provide leadership to match its rhetoric of being—to use Xi Jinping’s words from his Party Congress speech—an “important participant, contributor, and torchbearer” in addressing climate change (Xinhua, November 3, 2017). The PRC delegation constituted the joint-third largest at the conference, and was led by Zhao Yingmin (赵英民), vice-minister at the Ministry of Environment and Ecology (MEE). Also present were minister Huang Runqiu (黄润秋), special climate envoy Xie Zhenhua (解振华), and UN under-secretary-general for economic and social affairs Liu Zhenmin (刘振民), who is expected to replace Xie as he steps down after 25 years as the PRC’s top climate negotiator. Crucially, Executive Vice Premier Ding Xuexiang (丁薛祥), a Politburo Standing Committee member who holds real power over China’s climate policy (in a way that the MEE officials do not), also attended.
Topic:
Climate Change, Development, and Carbon Emissions
Political Geography:
China and Asia

542. The Sino-French Relationship At 60: China’s Losing Bet On A Reset

Author:
Juliana Bouchard
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Against a background of increasingly fraught relations with the European Commission, China has been doubling down on its outreach to member states, with France chief among them. The two countries have been gearing up to the 60th anniversary of their bilateral relationship in January 2024 with a flurry of diplomatic exchanges. These have included high-level visits by President Emmanuel Macron in April, Economic Minister Bruno Le Maire in July, diplomatic adviser Emmanuel Bonne in late October, and most recently Foreign Affairs Minister Catherine Colonna (FMPRC, November 22). On the Chinese side, Premier Li Qiang traveled to Paris in June to take part in the Summit for a New Global Financing Pact. However, this year also saw Paris deal some blows to China’s economic ambitions, with Macron being one of the driving forces behind Brussels’ ongoing anti-subsidy investigation into China-made electric vehicles and revamping its own EV purchase credits to exclude Chinese-made models (Service Public, October 10). During Bonne’s visit, Wang Yi framed his expectations for the anniversary in no uncertain terms, calling on China and France to “revisit the original intention (重温建交初衷)” of their bilateral ties and “consolidate and reset (巩固和再出发) the relationship” (FMPRC, October 30). Paris’ appetite for meeting Beijing halfway in “resetting” the relationship is far less certain. Most likely, China’s lofty ambitions for a reset will be met with more ambiguity from France, continuing its diplomatic outreach to safeguard economic opportunities in China, all the while pushing for more assertive policies within Brussels to achieve its vision of “strategic autonomy.” While some scholars are not entirely immune to the “dual-faced (两面性)” nature of French diplomacy (Fudan Development Institute, March 2), a prevalent view—or hope—among officials in Beijing is that Macron’s vision of strategic autonomy is primarily about asserting an independent foreign policy from the United States. However, in reality, strategic autonomy also informs France’s own de-risking agenda toward China.
Topic:
Foreign Policy, History, and Bilateral Relations
Political Geography:
China, Asia, and France

543. Decoding China’s Dilemma: The Difficulties Of Economic Reform

Author:
Sunny Cheung
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On November 27, the State Council of the People’s Republic of China (PRC) unveiled a new policy, titled “Notice on Strengthening Financial Support Measures for the Private Economy (关于强化金融支持举措 助力民营经济发展壮大的通知)” (People’s Bank of China, November 27). The notice introduces a set of 25 measures crafted to reinvigorate the private sector. These prioritize key areas such as technological innovation, green initiatives, and primary support for small to medium-sized enterprises. The package includes increasing financial assistance and gradually enhancing the proportion of loans to private businesses. It underscores the importance of facilitating credit, lowering interest rates, issuing bonds, and other kinds of financial instruments to meet the varied financing needs of private enterprises. This policy measure echoes mandates put forth during the 20th Party Congress in October 2022 and Central Financial Work Conference held at the end of October 2023 in response to China’s deepening economic woes (Xinhua, November 1). This backdrop has prompted policies aimed at addressing the challenges facing the Chinese economy. In October, the PRC National Bureau of Statistics announced that the Consumer Price Index (CPI) fell by 0.2 percent year-on-year—worse than expected and marking a contraction since July (RTHK, November 9). This ominous data, which includes price deflation for both July and October this year, is indicative of significant weakness in domestic demand, particularly due to the underperforming real estate market, which affects citizens’ expectations for asset prices. The ongoing economic downturn in China also refutes the notion that economic chaos would clear up after the abandonment of the Zero-Covid policy. This situation is also similar to the Japan-style recession in the 90s in which consumption and investment are further repressed in favor of paying down debt. China’s recent response has been to implement a series of economic stimulus measures in an attempt to revive its weakening national economy.
Topic:
Economics, Reform, Business, and Banking
Political Geography:
China and Asia

544. Moonshot vs. Long March: Contrasting the United States’s and China’s Space Programs

Author:
Katherine Kurata and David Lin
Publication Date:
11-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On the morning of November 2, 2023, the Gobi Desert’s silence was shattered: From a remote launchpad at the Jiuquan Satellite Launch Center (中国酒泉卫 星发射中心), the Hyperbola-2 (双曲线二号), a slender rocket bearing the iSpace emblem (星际荣耀), surged upwards, before gracefully alighting back on Earth (iSpace WeChat, November 2; CNSA, November 2). This suborbital hop marked a major achievement for iSpace as the company progresses towards developing reusable medium-lift rockets. The test demonstrated key technologies like the methalox engine and landing capabilities that will enable iSpace’s larger reusable rocket plans with Hyperbola-3. In China’s rapidly growing commercial space industry, iSpace, alongside other ambitious startups like Galactic Energy (星河动力), CAS Space (中科宇航探索技术), and Deep Blue Aerospace (深蓝航天), are striving to replicate the success of American pioneers such as SpaceX (Galactic Energy WeChat, July 24; CAS Space WeChat, April 4; Deep Blue Aerospace WeChat, May 7, 2022). Their goal: to revolutionize orbital access with reusable rocket technology. The success on November 2 was more than an engineering accomplishment; it was a testament to China’s emerging “innovation power”—its capacity to create, adopt, and seamlessly integrate new technologies (Foreign Affairs, February 28; US House of Representatives, May 17). This successful launch marks not just a step forward in technological capability but also a strategic shift in the global space race. With a unique mix of state guidance and entrepreneurial zeal, China is charting an alternate path in space exploration, contrasting sharply with the United States’s focus on private sector innovation. As the United States and China advance their respective space programs, their differing approaches are reshaping the landscape of space leadership. While America champions private sector innovation, China exerts centralized state control. Yet amidst an increasingly congested orbital environment, it is clear that the future trajectory of space exploration hinges not solely on innovation itself, but specifically on the capacity for nations to effectively combine government direction with commercial dynamism. The country that strikes this balance will harness the strengths of both its public and private sectors to accelerate advancement, and will be positioned to spearhead humanity’s future in the final frontier.
Topic:
Science and Technology, Space, Innovation, and Public-Private Partnership
Political Geography:
China, Asia, North America, and United States of America

545. China and Nicaragua’s Deepening Embrace

Author:
Scott B. MacDonald
Publication Date:
11-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In October 2023, Nicaragua signed an agreement with China’s CAMC Engineering Company (中工国际工程) for the reconstruction, expansion, and upgrading of the Punta Huete International Airport (Yicai, October 18). The company is a subsidiary of the conglomerate China National Machinery Industry Corporation (国际集团), also known as Sinomach (Sinomach, accessed November 15). Local and Chinese officials are touting the $492 million project as part of China’s Bridge and Road Initiative (BRI), reflecting a deepening of Daniel Ortega’s regime’s ties to the People’s Republic of China (PRC) (Global Times, October 18). Closer links between Beijing and Managua demonstrate that China’s economic statecraft remains central to its strategy to further penetrate Latin America and the Caribbean, a region of significant geopolitical importance to the United States. The sustainability of China’s economic statecraft, and BRI in particular, have come into question in recent months due to the country’s domestic economic problems. However, the Nicaraguan airport announcement signals that the PRC remains economically active in the region, and its ambitions have not wavered. This is something of which the remaining handful of countries that officially recognize Taiwan are well aware: Beijing’s attention to regional infrastructure continues, if more selectively than before, but only to those countries who have decided to forgo relations with Taiwan. Beijing is further extending its reach into the strategic underbelly of the United States. For Nicaragua, the restoration of diplomatic ties with China serves the geopolitical needs of President Daniel Ortega in distancing his regime from the United States and softening the blow of sanctions (imposed due to fraudulent elections and gross human rights violations), while providing a source of non-Western funds to finance infrastructure projects.
Topic:
Foreign Policy, Bilateral Relations, Infrastructure, and Economy
Political Geography:
China, Asia, Central America, and Nicaragua

546. The Cross-Strait Intelligence Contest Continues Without Quarter

Author:
Peter Mattis and Zoë Moore
Publication Date:
11-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Last week, the Taiwan High Court found retired air force Colonel Liu Sheng-shu (劉聖恕) and five serving military officers guilty of espionage for China. The court sentenced Colonel Liu and two of his co-conspirators to approximately 20 years in prison, marking some of the harshest sentencing for espionage in recent years (Taipei Times, October 26). Liu’s spy ring is one of at least 11 rings Taiwanese authorities have broken up over the last two years. These Chinese spies targeted Taiwan’s military, civilian government, industry, and the overseas communities of Chinese minorities. In some cases they were able to operate for years. Although it is tempting to read these cases as simply more examples of Beijing’s relentless intelligence operations against Taiwan, these cases and the tradecraft employed suggest some positive developments—or the relative absence of dangerous trends—in the cross-strait intelligence contest. The cost in trust of Chinese intelligence operations, the requirements of deterrence, and the potential costs of a cross-strait conflict combine to suggest that a wider international effort to counter Chinese intelligence operations is warranted.
Topic:
Intelligence, Espionage, Regional Security, and Cross-Strait Relations
Political Geography:
China, Taiwan, and Asia

547. Money Alone Is Not Enough: The Future Of The China-Argentina Relationship

Author:
Román D. Ortiz
Publication Date:
11-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Observers assessed the outcome of the first round of Argentina’s presidential elections held on October 22 as good news for the Chinese government (VOA, October 26). Against the odds, Sergio Massa, the Peronist candidate and current minister of economy, emerged on top, despite his overseeing an annual inflation rate of almost 140 percent. Meanwhile, Javier Milei, the libertarian opposition candidate, took the second place (Yahoo Noticias, October 23). These two politicians will compete for the presidency in the second round of the election scheduled for November 19. At first glance, the victory of Massa should be an encouraging sign for the People’s Republic of China (PRC) since it keeps open the possibility that the China-friendly Peronist party remains in government. However, a more granular analysis suggests two alternative outcomes: First, Milei is likely to be the eventual winner after the second round of voting, which would make the new occupant of the Casa Rosada (the Argentinian presidential palace) a politician who has called the PRC an “assassin” and who plans to freeze relations with Beijing. Second, if Massa wins the presidency, his more moderate Peronism is far from the Third-World foreign policy promoted by the outgoing president, Alberto Fernandez, and his vice-president and former president, Cristina Fernandez. Thus, regardless of the outcome of the presidential election, Beijing’s desires to increase political influence over Buenos Aires, which have focused particularly on its defense policy, are likely to be curtailed. A decrease in political influence with Buenos Aires would deal a serious blow to the Chinese strategy in Latin America, in which Argentina plays a critical role. Argentina is the only large country in the region to join the Belt and Road Initiative (BRI). It also exports food, minerals, and oil needed by the Chinese industrial sector. Argentina’s expansive territory represents a natural platform to project power within South America and to the South Atlantic. Buenos Aires’s geopolitics makes it particularly attractive for Beijing, which is exploring opportunities to secure rights for a naval base on the west coast of Africa in order to gain access to the Atlantic. Argentina also forms a key part of PRC efforts to consolidate its hegemony over the Global South. Specifically, the PRC views Argentina as a counterbalance to Brazilian regional hegemony, which motivated China’s interest in Argentina joining the BRICS grouping of countries, against Brazilian opposition.
Topic:
Foreign Policy, Bilateral Relations, Belt and Road Initiative (BRI), and Industry
Political Geography:
China, Asia, Argentina, and South America

548. Hong Kong: The Keystone in China’s Economic Statecraft

Author:
Sunny Cheung
Publication Date:
10-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The recent decision by Hong Kong to join China in banning Japanese seafood took many observers by surprise (Reuters, August 23). At first glance, the ban seemed an overblown reaction to Japan’s handling of nuclear wastewater, which many international bodies have deemed safe and compliant with established procedures. And while it is commonly understood that Hong Kong’s government is politically influenced by the Chinese Communist Party (CCP), many still believe in its economic autonomy. Considering the significant economic reliance of Japan on Hong Kong for its seafood trade, among other sectors, the ban startled numerous stakeholders (Nikkei Asia, August 25). However, the move is less shocking when Hong Kong is viewed as an integral cog in China’s economic statecraft machine. Traditionally, Western governments lack strategic foresight regarding Hong Kong’s long-term position. Often, this oversight stems from an inadequate comprehension of Hong Kong’s pivotal financial role relative to China, as well as an underestimation of its potential as a node for strategic leverage, both for and against China. China’s rise as a global superpower is inextricably linked to its adept use of economic statecraft, a fusion of economic might and strategic prowess. Its pressure on South Korea to stop the production of Taiwanese military submarines provides a recent example (Reuters, October 16). Hong Kong is a pulsating metropolis at the heart of this strategy. It not only exemplifies China’s ambitions but also acts as a crucial conduit for realizing them. There are two key strands of Hong Kong’s centrality to Beijing: its function as an economic lifeline to the global financial system and its role in the clandestine acquisition of technology and intellectual assets for China from overseas. The US and its allies must focus more on Beijing’s overt and covert leveraging of Hong Kong and think harder about what the city’s function should be in an era of de-risking, geoeconomic competition, and weaponized interdependence.
Topic:
Economy, Chinese Communist Party (CCP), Statecraft, Regional Politics, and Superpower
Political Geography:
China, Asia, and Hong Kong

549. Chinese National Security Laws Hinder Foreign Companies’ Operations in China

Author:
Martin Purbrick
Publication Date:
10-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Investigations into alleged misconduct and criminality by companies are to be expected, and welcomed, in any country. However, the problems facing foreign companies in the People’s Republic of China (PRC) depart from normal legal checks and balances. The lack of separation between the judiciary and the state, and the uncertainty around China’s interpretation of the “rule of law,” is a risk factor for companies doing business there (See: China Brief, September 8). In addition, “state secrets” in the PRC are defined widely in relation to national interest. Consequently, a foreign company can inadvertently breach the law by obtaining and using commercial data. This week the US Department of Commerce’s Bureau of Industry and Security (BIS) announced updated export controls on advanced computing semiconductors, semiconductor manufacturing equipment, and supercomputing items to the PRC (BIS, October 17). Foreign companies doing business in the PRC are likely to face continued uncertainty as a consequence. The response from the PRC was swift, stating that the United States has constantly “overstretched the concept of national security” and resorted to “unilateral bullying” (China Daily, October 18), which suggests that there is a risk the PRC will take retaliatory measures against foreign companies. Western companies involved in the PRC have long understood that when investing in China they must lose a little bit of money in the short term to win a lot of money in the long term. Doing business in China has always been complex, but with the continued expansive approach to national security, it may now be increasingly untenable (See: China Brief, September 22). After three decades of huge investment in the PRC by international companies, there are growing concerns that the growing emphasis on national security is harming the confidence of overseas investors. As the European Union Chamber of Commerce in China reports, “the politicisation of business, and ambiguous laws and regulations…increases risk for companies operating in Chinas” (EU Chamber, September 20). In recent weeks, this ambiguity has been exacerbated by the growing number of “exit bans,” whereby PRC authorities forbid specific business executives at international companies, such as Kroll and Nomura, from leaving the country (Stratfor, September 29).
Topic:
National Security, Law, and Business
Political Geography:
China and Asia

550. Characterizing China’s Rule of Law

Author:
Ben Lowsen
Publication Date:
09-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Chinese President Xi Jinping is working in earnest to develop for China what his government calls “rule by law” (法治). It is sometimes translated into English as “rule of law,” though this is misleading, as Chinese law cannot restrict arbitrary exercise of power at the highest levels: the Party leads everything. As such, an awareness of the term’s precise meaning in the PRC’s legal-political context is crucial for understanding Xi’s intent. The Chinese president has stated that “the rule of law is an important component of the country’s core competitiveness” (People’s Daily, November 22, 2020). In light of this, the recently promulgated Foreign Relations Law (对外关系法), which emphasizes China’s competitiveness, provides an opportunity to interrogate Xi’s conception of the rule of law. [1] The Foreign Relations Law (henceforth, the Law) is timely. The head of the powerful Legislative Affairs Committee said in an interview that out of the PRC’s 297 national laws, 52 were dedicated to foreign relations and 150 more had provisions relating to foreign relations. [2] The Law is therefore an important addition, “consolidating and describing the major policies and principles of China’s foreign affairs,” in the words of current (and former) foreign minister Wang Yi. [3] Moreover, it comes at a moment in which China is at once increasingly emboldened on the international stage, and whose relations with many developed countries are increasingly fraught. Support from abroad could be helpful for China as it attempts to navigate out of a mismanaged end to the Covid-19 pandemic, but there is little to reassure foreign partners that their investments in the country will be protected by its laws.
Topic:
Foreign Policy, Governance, and Rule of Law
Political Geography:
China and Asia