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Blinken Will Meet Chinese Officials After Asia Tour Next Week - The New York Times - 0 views

  • n a statement on Wednesday, a State Department spokesman said that Mr. Blinken and Mr. Sullivan would meet in Anchorage next Thursday with China’s foreign minister, Wang Yi, and its top diplomat, Yang Jiechi.
  • The meeting in Anchorage will continue a cautious sizing up between the world’s two largest powers, one underway since the Biden administration took office amid pledges to continue in large measure the Trump administration’s firm posture toward Beijing
  • Mr. Biden spoke to China’s leader, Xi Jinping, last month, warning him that he intended to challenge China’s “coercive and unfair economic practices” as well as its record on human rights and its crackdown on Hong Kong, according to a White House summary of the call. But Mr. Biden also said he hoped to cooperate with Mr. Xi on matters like the coronavirus, nuclear proliferation and climate change.
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  • Mr. Blinken said on Twitter that he looked forward to engaging the Chinese officials “on a range of issues, including those where we have deep disagreements.”
  • Testifying on Wednesday before the House Committee on Foreign Affairs, Mr. Blinken said the meeting would be an opportunity “to lay out in very frank terms the many concerns that we have with Beijing’s actions and behavior,” including the effects of Chinese trade practices on American workers.
  • On Friday, Mr. Biden will meet virtually with the leaders of Australia, Japan and India, a group collectively known as “the Quad,” and one whose implicit purpose is to check Chinese economic and military influence in Asia.
  • But Mr. Biden has tread cautiously so far and has not yet taken any major policy actions toward China. Even President Donald J. Trump’s tariffs on Chinese imports are under review, Mr. Sullivan said last week
Javier E

War in Ukraine Has Russia's Putin, Xi Jinping Changing the World Order - Bloomberg - 0 views

  • at the beginning of 2022, many of us shared the assumptions of Keynes’s Londoner. We ordered exotic goods in the confident expectation that Amazon would deliver them to our doors the next day. We invested in emerging-market stocks, purchased Bitcoin, and chatted with people on the other side of the world via Zoom. Many of us dismissed Covid-19 as a temporary suspension of our global lifestyle. Vladimir Putin’s “projects and politics of militarism” seemed like diversions in the loonier regions of the Twittersphere. 
  • just as World War I mattered for reasons beyond the slaughter of millions of human beings, this conflict could mark a lasting change in the way the world economy works — and the way we all live our lives, however far we are from the carnage in Eastern Europe.
  • That doesn’t mean that globalization is an unalloyed good. By its nature, economic liberalism exaggerates the downsides of capitalism as well as the upsides: Inequality increases, companies sever their local roots, losers fall further behind, and — without global regulations — environmental problems multiply
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  • Right now, the outcome that we have been sliding toward seems one in which an autocratic East gradually divides from — and then potentially accelerates past — a democratic but divided West. 
  • Seizing that opportunity will require an understanding of both economics and history.
  • By any economic measure the West is significantly more powerful than the East, using the terms “West” and “East” to mean political alliances rather than just geographical regions. The U.S. and its allies account for 60% of global gross domestic product at current exchange rates; China, Russia and the autocracies amount to barely a third of that. And for the first time in years, the West is coming together rather than falling apart.
  • The question for Biden and the European leaders he will meet this week is simple: What sort of world do they want to build in the future? Ukraine could well mark the end of one great episode in human history. It could also be the time that the free world comes together and creates another, more united, more interconnected and more sustainable one than ever before
  • the answer to globalization’s woes isn’t to abandon economic liberalism, but to redesign it. And the coming weeks offer a golden opportunity to redesign the global economic order.
  • Yet once politicians got out of the way, globalization sped up, driven by technology and commerce.
  • Only after the Second World War did economic integration resume its advance — and then only on the Western half of the map
  • What most of us today think of as globalization only began in the 1980s, with the arrival of Thatcherism and Reaganism, the fall of the Berlin Wall, the reintegration of China into the world economy, and, in 1992, the creation of the European single market.
  • When the guns finally fell silent in 1918 and peace was forced on Germany at Versailles (in the Carthaginian terms that Keynes decried so eloquently), the Bidens, Johnsons and Macrons of the time tried to restore the old world order of free trade and liberal harmony — and comprehensively failed. 
  • As the new century dawned and an unknown “pro-Western” bureaucrat called Vladimir Putin came to power in Russia, the daily volume of foreign-exchange transactions reached $15 trillion. 
  • More recently, as the attacks on globalization have mounted, economic integration has slowed and in some cases gone into reverse.
  • Meanwhile in the West, Ukraine has already prompted a great rethink. As German Chancellor Olaf Scholz has proclaimed, we are at a Zeitenwende — a turning point. Under his leadership, pacifist Germany has already proposed a defense budget that’s larger than Russia’s. Meanwhile, Ukrainian immigrants are being welcomed by nations that only a few months ago were shunning foreigners, and, after a decade of slumber in Brussels, the momentum for integration is increasing.
  • But this turning point can still lead in several directions.
  • the invasion of Ukraine is accelerating changes in both geopolitics and the capitalist mindset that are deeply inimical to globalization.
  • The changes in geopolitics come down to one word: China, whose rapid and seemingly inexorable rise is the central geopolitical fact of our time.  
  • absent any decisive action by the West, geopolitics is definitively moving against globalization — toward a world dominated by two or three great trading blocs: an Asian one with China at its heart and perhaps Russia as its energy supplier; an American-led bloc; and perhaps a third centered on the European Union, with the Europeans broadly sympathetic to the U.S. but nervous about the possible return of an America-First isolationist to the White House and irked by America’s approach to digital and media regulation.
  • World trade in manufactured goods doubled in the 1990s and doubled again in the 2000s. Inflationary pressures have been kept low despite loose monetary policies.
  • From a CEO’s viewpoint, Putin’s invasion of Ukraine has done more than unleash Western embargoes and boost inflation. It is burying most of the basic assumptions that have underlain business thinking about the world for the past 40 years. 
  • Commercially speaking, this bet paid off spectacularly. Over the past 50 years multinationals have turned themselves from federations of national companies into truly integrated organizations that could take full advantage of global economies of scale and scope (and, of course, global loopholes in taxes and regulations)
  • Just as important as this geopolitical shift is the change in the capitalist mindset. If the current age of globalization was facilitated by politicians, it has been driven by businesspeople. Ronald Reagan and Margaret Thatcher didn’t decide that the components of an iPhone should come from 40 countries. Facebook wasn’t created by senior politicians — not even by Al Gore. Uber wasn’t an arm of the Department of Transportation. 
  • profits have remained high, as the cost of inputs (such as energy and labor) have been kept low.
  • Now what might be called the Capitalist Grand Illusion is under assault in Kyiv — just as Norman Angell’s version was machine-gunned on the Western Front.
  • Militarism and cultural rivalries keep trumping economic logic.
  • The second is Biden’s long experience
  • Every Western company is now wondering how exposed it is to political risk. Capitalists are all Huntingtonians now.
  • Greed is also acquiring an anti-global tint. CEOs are rationally asking how they can profit from what Keynes called “monopolies, restrictions and exclusions.
  • So the second age of globalization is fading fast. Unless something is done quickly and decisively, the world will divide into hostile camps, regardless of what happens in Ukraine.
  • this divided world will not suit the West. Look at the resolution passed by the United Nations General Assembly to condemn Russia’s invasion of Ukraine. The most trumpeted figure is that only 40 countries did not vote for this (35 abstained, and five voted against it), compared with 141 countries who voted in favor. But those 40 countries, which include India and China, account for the majority of the world’s population.
  • we still have time to shape a very different future: one in which global wealth is increased and the Western alliance bolstered.
  • One of the great problems with modern liberalism for the past few decades has been its lack of a gripping narrative and a compelling cast of heroes and villains
  • Now Putin has inadvertently reversed all that. Freedom is the creed of heroes such as Zelenskiy; anti-liberalism is the creed of monsters who drop bombs on children.
  • Biden can soften that message at home by adding a political dimension to his trade agenda. “Build back better” applies to globalization, too. A global new deal should certainly include a focus on making multinational companies pay their taxes, and the environment should be to the fore. But Biden should also talk about the true cost of protectionism in terms of higher prices, worse products and less innovation.
  • So far, Biden’s handling of the Ukraine invasion has been similarly nuanced. He has drawn a line between supplying the resistance and becoming involved in the war (or giving others an excuse to claim the U.S. is involved). And he has put firm pressure on China to stay out of the conflict.
  • Biden needs to recognize that expanding economic interdependence among his allies is a geostrategic imperative. He should offer Europe a comprehensive free-trade deal to bind the West together
  • It is not difficult to imagine Europe or democratic Asia signing up for these sorts of pacts, given the shock of Putin’s aggression and their fear of China. Biden’s problem is at home. Why should the Democratic left accept this? Because, Biden should say, Ukraine, China and America’s security matter more than union votes.
  • Biden should pursue a two-stage strategy: First, deepen economic integration among like-minded nations; but leave the door open to autocracies if they become more flexible.
  • CEOs who used to build empires based on just-in-time production are now looking at just-in-case: adding inefficient production closer to home in case their foreign plants are cut off.
  • Constructing such a “new world order” will be laborious work. But the alternative is a division of the world into hostile economic and political blocs that comes straight out of the 1930s
  • Biden, Johnson, Scholz and Macron should think hard about how history will judge them. Do they want to be compared to the policymakers in the aftermath of World War I, who stood by impassively as the world fragmented and monsters seized the reins of power? Or would they rather be compared to their peers after World War II, policymakers who built a much more stable and interconnected world?
  • The Western policymakers meeting this week will say they have no intention of closing down the global order. All this economic savagery is to punish Putin’s aggression precisely in order to restore the rules-based system that he is bent on destroying — and with it, the free flow of commerce and finance. In an ideal world, Putin would be toppled — the victim of his own delusions and paranoia — and the Russian people would sweep away the kleptocracy in the Kremlin. 
  • In this optimistic scenario, Putin’s humiliation would do more than bring Russia back to its senses. It would bring the West back as well. The U.S. would abandon its Trumpian isolationism while Europe would start taking its own defense seriously. The culture warriors on both sides of the Atlantic would simmer down, and the woke and unwoke alike would celebrate their collective belief in freedom and democracy.
  • There’s a chance this could happen. Putin wouldn’t be the first czar to fall because of a misjudged and mishandled war.
  • Regardless of whether China’s leader decides to ditch Putin, the invasion has surely sped up Xi’s medium-term imperative of “decoupling” — insulating his country from dependence on the West.
  • For the “wolf pack” of young Chinese nationalists around Xi, the reaction to Ukraine is another powerful argument for self-sufficiency. China’s vast holdings of dollar assets now look like a liability given America’s willingness to confiscate Russia’s assets,
  • Some Americans are equally keen on decoupling, a sentiment that bridged Republicans and Democrats before Putin’s invasion of Ukraine.
  • In the great intellectual battle of the 1990s between Francis Fukuyama, who wrote “The End of History and the Last Man” (1992), and his Harvard teacher Samuel Huntington, who wrote “The Clash of Civilizations” (1996), CEOs have generally sided with Fukuyama.
  • Biden needs to go further in the coming weeks. He needs to reinforce the Western alliance so that it can withstand the potential storms to come
  • Keynes, no longer a protectionist, played a leading role in designing the International Monetary Fund, the World Bank, and the infrastructure of the postwar Western order of stable exchange rates. He helped persuade the U.S. to lead the world rather than retreating into itself. He helped create the America of the Marshall Plan. This Bretton Woods settlement created the regime that eventually won the Cold War and laid the foundations for the second age of globalization.
  • At the closing banquet on July 22, the great man was greeted with a standing ovation. Within two years he was dead — but the world that he did so much to create lived on. That world does not need to die in the streets of Kyiv. But it is on course to do so, unless the leaders meeting this week seize the moment to create something better. 
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Javier E

How the cult of Xi Jinping stopped China admitting zero-Covid didn't work | World | The... - 0 views

  • Vaccinations were simply not a priority of zero-Covid policy, whose primary aim was to contain if not eliminate the virus. The health system remains ill equipped and underfunded, with a shortage of critical care facilities. There is also a chronic shortage of fever-reducing drugs such as ibuprofen, even though China is the world’s biggest producer of them.
  • Why was China so ill prepared? The answer lies in the nature of Xi’s increasingly autocratic rule. Zero-Covid was part of the cult of Xi. It defined everything in China, and to question it was to question him — dangerous in today’s China. It is hard to say what precisely triggered his abrupt reversal at the height of winter when the dangers of rapid spread are greatest. The economy is certainly faltering badly, but the popular conclusion in China is that the protests forced Xi’s hand. That could have profound consequences, since an emboldened population will be potentially troubling for a party whose survival relies in part on fear of challenging its rule.
Javier E

Opinion | China's Economy Is in Serious Trouble - The New York Times - 0 views

  • Some analysts expected the Chinese economy to boom after it lifted the draconian “zero Covid” measures it had adopted to contain the pandemic. Instead, China has underperformed by just about every economic indicator other than official G.D.P., which supposedly grew by 5.2 percent.
  • the Chinese economy seems to be stumbling. Even the official statistics say that China is experiencing Japan-style deflation and high youth unemployment. It’s not a full-blown crisis, at least not yet, but there’s reason to believe that China is entering an era of stagnation and disappointment.
  • Why is China’s economy, which only a few years ago seemed headed for world domination, in trouble?
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  • With consumers buying so little, at least relative to the Chinese economy’s productive capacity, how can the nation generate enough demand to keep that capacity in use? The main answer, as Michael Pettis points out, has been to promote extremely high rates of investment, more than 40 percent of G.D.P. The trouble is that it’s hard to invest that much money without running into severely diminishing returns.
  • financial repression — paying low interest on savings and making cheap loans to favored borrowers — that holds down household income and diverts it to government-controlled investment, a weak social safety net that causes families to accumulate savings to deal with possible emergencies, and more.
  • Part of the answer is bad leadership. President Xi Jinping is starting to look like a poor economic manager, whose propensity for arbitrary interventions — which is something autocrats tend to do — has stifled private initiative.
  • But China’s working-age population peaked around 2010 and has been declining ever since. While China has shown impressive technological capacity in some areas, its overall productivity also appears to be stagnating.
  • very high rates of investment may be sustainable if, like China in the early 2000s, you have a rapidly growing work force and high productivity growth as you catch up with Western economies
  • This, in short, isn’t a nation that can productively invest 40 percent of G.D.P. Something has to give.
  • the government was able to mask the problem of inadequate consumer spending for a number of years by promoting a gigantic real estate bubble. In fact, China’s real estate sector became insanely large by international standards.
  • what China must do seems straightforward: end financial repression and allow more of the economy’s income to flow through to households, and strengthen the social safety net so that consumers don’t feel the need to hoard cash. And as it does this it can ramp down its unsustainable investment spending.
  • But there are powerful players, especially state-owned enterprises, that benefit from financial repression
  • And when it comes to strengthening the safety net, the leader of this supposedly communist regime sounds a bit like the governor of Mississippi, denouncing “welfarism” that creates “lazy people.”
  • Japan ended up managing its downshifting well. It avoided mass unemployment, it never lost social and political cohesion, and real G.D.P. per working-age adult actually rose 50 percent over the next three decades, not far short of growth in the United States.
  • My great concern is that China may not respond nearly as well. How cohesive will China be in the face of economic trouble? Will it try to prop up its economy with an export surge that will run headlong into Western efforts to promote green technologies? Scariest of all, will it try to distract from domestic difficulties by engaging in military adventurism?
Javier E

Donald Trump is making China great again | Isabel Hilton | Opinion | The Guardian - 0 views

  • wo years ago, some European and US experts gathered to discuss China in an elegant English country house. The setting was seductive, but the mood was dark. Two years into Xi Jinping’s presidency, China’s politics were turning away from the liberalising trend of the previous three decades, towards a hard-edged nationalism that was discomfiting China’s immediate neighbours and their western allies.
  • a global conflict between the systems, values and norms of the pluralist, democratic United States and China’s Communist party seemed inevitable. It would be unpleasant, but nobody doubted that US values would prevail.
  • The group discussed whether China could succeed. What might go wrong?
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  • The one scenario not discussed was that the US would tear up its own rules, leaving the field open to China to consolidate its dominance of the Asia Pacific and extend its global influence. Nobody even imagined such a far-fetched possibility.
  • It’s hard to imagine Trump quoting Thucydides, or Stephen Hawkins or Herman Hesse, or cramming references to Pandora’s box, the Peace of Westphalia and the sword of Damocles into a 58-minute plea for peace and international cooperation. Such a carefully crafted speech might have been delivered by previous US presidents, since it paid fulsome homage to the core values the US has promoted since 1945. But this was delivered by the general secretary of the Chinese Communist party and president of the China, to an audience at the United Nations in Geneva in January.
  • China’s proposition to the world, Xi said, was to “build a community of shared future for mankind and achieve shared and win-win development”.
  • Such a claim might previously have encountered polite scepticism. Today, it receives an almost uncritical welcome.
  • Xi reminded his audience of China’s contribution to global economic stability since the financial crisis, of an average of 30% of global growth each year. “In the coming five years,” he predicted, “China will import $8tn of goods, attract $600bn of foreign investment, make $750bn of outbound investment, and Chinese tourists will make 700 million outbound visits.”
  • if Xi’s claim is contestable, it pales in comparison with the exaggerations, false claims and threats by Trump and his circle.
  • Trump’s singular achievement in his short time as president has been to trash US soft power assets and make China’s regime look less objectionable. Before Trump, even as western countries scrambled to access the Chinese market, they regarded Beijing with scepticism. Why should anyone believe the global message of a regime that does not tolerate dissent or domestic challenges?
  • But that is now a question we must begin to ask of the US. China’s official untruths seem modest in comparison with those of a man who can barely get through a sentence without a lie.
Javier E

Why China Silenced a Clickbait Queen in Its Battle for Information Control - The New Yo... - 0 views

  • The silencing of Ms. Ma, better known in China by her pen name, Mimeng, reflects a broader campaign by President Xi Jinping to purge the public sphere of popular voices that the ruling Communist Party finds threatening, no matter how innocuous they may seem.
  • “There is no longer any freedom of speech in China,” Jia Jia, a blogger who writes about history, said of the campaign. “In the end, no one will be spared.”
  • Now Mr. Xi is pushing to tame one of the most vibrant corners of the Chinese internet: the more than one million self-help gurus, novelists, sportswriters and other independent writers who make up the so-called “self-media.”
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  • Since December, the authorities have closed more than 140,000 blogs and deleted more than 500,000 articles, according to the state-run news media, saying that they contained false information, distortions and obscenities.
  • The party seems concerned that independent commentators, who have become a primary news source for China’s more than 800 million internet users, are drowning out its propaganda messages
  • “Bloggers are seen as encouraging discontent in society and potentially causing social instability,” said Hu Xingdou, a political economist in Beijing.
  • Such blogs represent one of the last bastions of relatively free discourse in China and have proliferated in recent years as the state-run news media has become more heavily focused on praising Mr. Xi and his policies.
  • For many writers, blogs are a lucrative business, with readers paying small fees for content and advertisers paying for mentions of their products. To avoid China’s strict laws on news gathering, many bloggers occupy a gray area, framing their views on current events as commentary.
  • The freewheeling competition for eyeballs has led to an alarming rise in fake news, a concern that the government often uses to justify its crackdown.
  • But Mr. Xi is targeting much more than false information. The authorities have blacklisted writers who traded celebrity gossip, analysts who discussed rising property prices and advocates who wrote about problems in the countryside.
  • In interviews, bloggers described the silencing of Ms. Ma as a clear warning to independent media in China: The party is in charge, and writers must play by its rules.
  • But while the range of banned topics in China was once clear — independence movements in Tibet and Taiwan, and the bloody crackdown in Tiananmen Square in 1989, for example — the party’s red line has become much more ambiguous.
  • China’s trade war with the United States is now considered sensitive. So too, sometimes, are musings about the futility of work, a theme often derided by censors as promoting “slacker culture.”
  • Li Yongfeng, who runs a popular book review channel, said he avoided publishing articles that mentioned social movements or past or present political leaders, even to offer praise.
  • “At the end of the day, it is up to authorities to decide what constitutes ‘positive energy’ and what does not,” she said.
  • In December, the Cyberspace Administration of China listed offenses by bloggers that included distorting government policy and party history, “flaunting wealth” and “challenging public order.”
  • An account that focused on women was suspended last year after the authorities said its posts on sexual health were “distasteful.”
  • Similarly, an account run by a nonprofit named NGOCN was shut down in December after it published articles on a chemical spill in eastern China
  • Increasingly, the party is seeking to limit content that depicts life in China as a constant struggle.
  • “It is becoming unbearable,” Mr. Wang said. “The party simply can’t tolerate anyone who has a big influence on society.”
cdavistinnell

Why Relying on China to Stop North Korea May Not Work - The New York Times - 0 views

  • Speaking in South Korea earlier Wednesday, Mr. Trump made an impassioned call for China and other countries to pull together to confront the North, which he described as a sinister regime that starved and terrorized its people — a tragic failed experiment in the “laboratory of history.”
  • Since Mr. Trump first played host to Mr. Xi at his Florida estate last April, he has said he is counting on Mr. Xi to do the right thing with North Korea, alternately praising and prodding the Chinese leader about enforcing tougher United Nations sanctions.
  • To his frustration, however, Mr. Xi has stopped short of targeting Mr. Kim with unilateral sanctions that would threaten his regime, send refugees into China and raise the possibility of a Korean Peninsula under control of the South, a close American ally.
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  • At the start of this trip, Trump administration officials denied the president was willing to make concessions on trade in the hope of extracting what was needed on North Korea. But the president is also not calling on China to make any significant moves to open its markets, preferring to put the spotlight on big-ticket deals for American companies.
  • Some Chinese call the relationship a “fake alliance.”
  • Officials in Beijing and Washington point out that China has taken some measurable steps on North Korea. After the North’s accelerating nuclear tests and intercontinental ballistic missile launches, China approved tougher sanctions at the United Nations.It has agreed to sever banking ties, end joint-venture companies with North Korea and limit the export of diesel fuel. China shut down North Korea’s coal imports earlier this year.
  • For China, North Korea remains a valuable buffer against the possibility of a united Korean Peninsula that would probably be capitalist, democratic and allied with the United States, said Evans J. R. Revere, a former State Department official who dealt with Northeast Asia.
Javier E

Ties That Bind Putin and Xi Tested by Russia's Ukraine Invasion - The New York Times - 0 views

  • When Mr. Xi came to power a decade ago, the entente between the countries accelerated into a deepening relationship that has overcome decades of division and suspicion. Trade has skyrocketed, reaching $146 billion last year. The two militaries train together and conduct joint air and naval patrols along China’s coast.
  • “Even though the bilateral relationship is not an alliance, in its closeness and effectiveness this relationship even exceeds that of an alliance,” Mr. Xi told his counterpart during virtual talks in December, according to Mr. Putin’s foreign policy adviser Yuri V. Ushakov.
  • That relationship seemed to reach a new peak at the Olympics. After their meeting, the leaders issued a lengthy joint statement that raised alarms in Washington.
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  • It was the first time China had explicitly endorsed Russia’s demand for a halt to NATO expansion, though it had criticized previous NATO applications by individual countries, including Montenegro and North Macedonia.
  • The two leaders also vowed to resist American-led efforts to promote pluralistic democracy and said they would fight foreign influence under the guise of what both call “color revolutions,” after the popular uprisings in former Soviet republics like Ukraine and Georgia.
grayton downing

Detecting Shift, U.S. Makes Case to China on North Korea - NYTimes.com - 0 views

  • shift in decades of Chinese support for North Korea, is pressuring China’s new president, Xi Jinping, to crack down on the regime in Pyongyang
  • China, the North’s only strong ally, has long feared the United States would capitalize on the fall of the North Korean leadership by expanding American military influence on the Korean Peninsula.
  • Even if China does cooperate, it is unclear how far North Korea might bend; North Korea ignored China’s entreaties not to conduct the nuclear test in February
julia rhodes

China Looms Over Response to Blast Test by North Korea - NYTimes.com - 0 views

  • At the United Nations, the desire to impose ever harsher sanctions on North Korea to try to curb its development of nuclear arms and ballistic missiles has long stalled in the face of Chinese opposition
  • They include banning specific, high-tech items used in the nuclear program, like epoxy paste for centrifuges; limiting or outlawing some banking transactions; and a far more stringent inspection of ships bound to and from North Korea.
  • “If we had the kind of product listing and focus on financial flows and interdiction on North Korea that we placed on Iran, we would not be in this spot,”
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  • But the sanctions in place are almost exclusively focused on nuclear and ballistic missile activity.
  • China will almost certainly join the United States in supporting tougher sanctions over Tuesday’s test, accompanied by sterner reprimands from Beijing against its recalcitrant ally in Pyongyang, which ignored Chinese entreaties not to take provocative actions.
  • there is little chance that the new Chinese leader, Xi Jinping, will move quickly to change the nation’s long-held policy of propping up the walled-off government that has long served as a buffer against closer intrusion by the United States on the Korean Peninsula.
  • Chinese military strategists adhere to the doctrine that they cannot afford to abandon their ally, no matter how bad its behavior, analysts here say.
  • Indeed, relations between the two countries are conducted largely between the two parties rather than between the two foreign ministries, the more normal diplomatic channel.
  • One nuclear test will not make China’s new administration decide to ‘abandon North Korea,’ but it will definitely worsen China-North Korea relations
  • With Hu out of the picture, the administration is intent on determining whether Xi Jinping will prove more attentive to U.S. security concerns
  • China’s calculations will be crucial to what happens at the Security Council, where the policy has always been to pursue unanimity over toughness; it is considered far better to get all members on board to send a message to North Korea rather than have China abstain or worse, veto.
  • “Threatening a missile-capable warhead with a successful third nuclear test gives the United States, South Korea and Japan good reason to step up their regional ballistic missile defense capabilities,” said Siegfried S. Hecker,
  • Some experts say it needs to keep up the tough talk, even if it understands that its efforts at the Security Council may not do much to limit the North’s capabilities.
  • Now experts say the North may be simply trying to wait the United States out, hoping it will eventually recognize its program as it did Pakistan’s.
  • As the world’s powers struggle to refine their policies, North Korea continues to make technological advances. A long-range rocket test in December has been judged by outside experts to have been a success after many failures.
  • “It moves the question of North Korea as a nuclear contender from ‘if’ to ‘when,’ ” said one senior Obama administration official. “The ‘when’ may still be years away, but at least now it is in sight.”
ecfruchtman

Donald Trump Affirms Commitment to 'One China' Policy in Call With Xi Jinping - 0 views

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drewmangan1

Beijing's Patience Pays Off With Trump's Reaffirmation of 'One-China' Policy - WSJ - 0 views

  • After weeks of several phone run-ins with world leaders, Mr. Trump committed to a longstanding agreement that the U.S. won’t recognize Taiwan diplomatically in a phone call with President Xi Jinping late Thursday.
  • Mr. Trump’s blunt style has posed a challenge for protocol-conscious Chinese officials wary of unpredictable turns in the conversation. In previous calls with leaders, Mr. Trump chided Mexican President Enrique Peña Nieto over the country’s drug cartels and Australian Prime Minister Malcolm Turnbull over a refugee-resettlement agreement Australia reached with the Obama administration.
  • Chinese analysts said Mr. Trump’s change in rhetoric was inevitable. “Some things you don’t need to be anxious to respond with tits-and-tats for,“ said Zhang Ruizhuang, professor of international relations at Nankai University in Tianjin. ”Instead, give him some time, and let him slowly realize things on his own.”
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  • In written answers provided to the Senate, Mr. Tillerson also indicated he intended to adhere to the “One China” policy, saying Taiwan “should not be treated as a bargaining chip.”
Javier E

US-China war would be a disaster for the world, says Communist party | World news | The... - 0 views

  • “Were the United States and China to wage war on one another, the whole world would divide itself,” the People’s Daily newspaper argued in a commentary, paraphrasing Henry Kissinger
  • Fears of a potentially calamitous trade war, or even a military clash between the two nuclear powers, have been building since Trump’s shock election win last November.
  • Steve Bannon, Trump’s influential chief strategist, was last week reported to have warned last year that war between the US and China in the resource-rich waterway was inevitable.
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  • Meanwhile, in a likely indication of the frictions between Washington and Beijing, Trump has yet to speak to his Chinese counterpart, Xi Jinping, despite having held conversations with at least 18 world leaders since his inauguration.
  • Last month, the China’s foreign ministry urged the US president’s team to “speak and act cautiously” after the White House press secretary, Sean Spicer, vowed the US would foil Chinese efforts to “take over” the South China Sea.
  • In a diplomatically worded editorial published on page three of the People’s Daily domestic edition on Monday, the voice of the Communist party said both countries should strive to avoid confrontation, conflict, misunderstandings and miscalculations.
  • Differences of opinion were inevitable due to the historical, cultural, economic and social differences between the US and China, the article said, “but wise men should seek common ground”. The article was printed under the byline “Zhong Sheng”, a homonym for “Voice of China”.
  • “The Chinese have not let themselves be bated … They understand that they are dealing with a different American leader who operates in different ways. They want to manage it carefully so it doesn’t needlessly escalate,” said Medeiros, who is now the managing director for Asia at the political risk consultancy Eurasia Group.
  • However, attitudes had shifted from nervousness about the US president’s erratic tweeting to resignation that the two countries were entering a “difficult period”. “The possibilities for an escalation of tensions are growing because distrust is high,” the article said.
  • Susan Shirk, the head of the 21st Century China Centre at the University of California, San Diego, said China specialists were “flummoxed” at Trump’s apparent determination to take on Beijing and said such moves came at an unfortunate time.
  • “As a person who sees a very strong connection between Chinese domestic politics and its foreign policy, I see the Trump statements as resonating through Chinese foreign policy in a way that could really be dangerous,” said Shirk, the author of China: Fragile Superpower
julia rhodes

Japan to Form Own National Security Council - WSJ.com - 0 views

  • A bill to create a Japanese National Security Council is set to pass in the nation's parliament, as China's rising maritime assertiveness and North Korea's nuclear ambitions give Prime Minister Shinzo Abe greater leeway to tighten his grip on foreign and defense policies.
  • Seen as an important step in Mr. Abe's push for Tokyo to expand its role in regional security, the new council is also viewed as a backdoor for the premier to ramp up Japan's military, which is strictly bound under the nation's postwar constitution to a self-defense role.
  • The idea of creating a U.S.-style NSC has gained traction in recent years as Japan experienced a string of national-security related incidents that prompted it to boost its defense spending and capabilities. These policies have been viewed with caution by Beijing and Seoul amid tensions over historical and territorial issues.
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  • confrontation with Beijing over disputed islands in the East China Sea have created a series of testy situations that has underscored the importance of sound decision-making at the top of the government.
  • Pyongyang's pursuance of its nuclear and ballistic missile programs has also forced Tokyo to confront more urgent weapons threats, adding fuel to Mr. Abe's push to reinterpret the nation's pacifist constitution and lift the self-imposed ban on exercising the right to "collective self defense," or the right to aid allies being attacked.
  • By integrating the flow of information and providing speedy analysis, the NSC hopes to accelerate the prime minister's decision-making process on various issues involving national defense, including foreign military attacks and other serious emergencies.
  • Mr. Abe's plan has faced a fair amount of criticism. A state-secrecy bill that goes hand-in-hand with the draft legislation to enact the NSC has generated widespread concern by those who fear it could infringe on journalistic freedom and the public's right to information.
  • The bill, currently under discussion in parliament, toughens penalties against those who leak sensitive information related to defense, foreign policy, terrorism and other harmful activities, and has grabbed attention in the wake of Edward Snowden's leaking of classified U.S. intelligence information.
  • NSC will function properly and achieve its aims, or lose substance and become another ineffective bureaucratic institution.
  • The creation of the council also coincides with Beijing's plans to establish a similar state security committee that could boost President Xi Jinping's grasp over the military, domestic security and foreign policy as China flexes its military and diplomatic muscle in the region.
  • The NSC will be the control tower for Japan's diplomacy and defense," Mr. Yachi said during a speech he gave in Tokyo earlier this month, explaining that staff will be recruited from the foreign ministry, the police agency and the private sector.
redavistinnell

South China Sea: Beijing 'not frightened to fight a war' after US move | World news | T... - 0 views

  • South China Sea: Beijing 'not frightened to fight a war' after US move
  • Twenty-four hours after Washington challenged Beijing’s territorial claims in the region by deploying a warship to waters around the disputed Spratly archipelago, the notoriously nationalistic Global Times accused the Pentagon of provoking China.
  • The People’s Liberation Army Daily, China’s leading military newspaper, used a front-page editorial to accuse the US of sowing chaos in countries such as Afghanistan and Iraq.
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  • Tuesday’s manoeuvre, which saw the guided-missile destroyer USS Lassen sail close to artificial Chinese islands, came after Barack Obama and Chinese president Xi Jinping failed to find common ground over the issue during recent talks at the White House.
  • “The United States has been very irresponsible,” defense ministry spokesperson Yang Yujun said, according to Xinhua, China’s official news agency.
  • Lu Kang, a foreign ministry spokesperson, said China would “resolutely respond” to any deliberate provocations but declined to be drawn on any potential military response.
  • China’s military buildup in the South China Sea – including the construction of a 3km runway capable of supporting fighter jets and transport planes – has become a major source of tension between Beijing and Washi
  • Washington hoped Tuesday’s mission would encourage Beijing to step back from its controversial island building campaign, which China claims is for civilian purposes but critics believe is an attempt to use military power to cement its grip over the region.
  • Townshend said the US mission may have temporarily strengthened Washington’s hand. “[But] there’s an element of you win the battle but you lose the war if actually these freedom of navigation missions make China more determined to militarise these islands,” he added. “These islands are not going away – unless global warming takes them out.”
maddieireland334

In New Economic Plan, China Bets That Hard Choices Can Be Avoided - The New York Times - 0 views

  • As economic growth has fallen while debts and excess industrial output have risen, Chinese leaders have faced growing questions about whether they will carry out the painful policy surgery many experts say is needed to cut away the financial dead weight on the economy.
  • hinese leaders’ usual two-sided rhetoric about their options — peril is close at hand, but so is a sure cure — was especially striking in Mr. Li’s latest annual report to the legislature, the National People’s Congress.
  • Mr. Li suggested, would help dull the pain from cuts to wheezing state-supported industries that must shed millions of workers, as part of a program that China’s powerful president, Xi Jinping, has promoted as “supply-side structural reform.”
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  • He did not specify how many workers could lose their jobs as part of the government’s plan to close, merge or restructure mines and factories weighed down by excess capacity.
  • A growth rate of 6.5 percent a year is the minimum needed to achieve President Xi’s often-declared goal of doubling the size of the Chinese economy by 2020, relative to its size in 2010.
  • But such financial easing implies more debt, at a time when many Western economists and policy makers are already worried that total leverage in the Chinese economy has far outstripped economic output.
  • he increased debt may help the government achieve its target of 6.5 percent to 7 percent economic growth this year, but at the price of burdening banks with even more loans to struggling businesses, or even effectively insolvent ones. That policy may also water down leaders’ promises to shut companies that are producing unwanted industrial goods.
  • Mr. Li said the government’s policies could help create more than 10 million jobs in towns and cities this year, and more than 50 million by the end of 2020.
  • The government will set aside $15.3 billion to support laid-off workers and hard-hit areas, he said.
  • To a surprising extent, the economic vision unveiled by Mr. Li echoed policies in the United States, the European Union and Japan, all of which have depended heavily on their central banks to expand money supply and keep growth aloft. The International Monetary Fund and many independent economists have strongly called for the world to shift from this reliance on monetary policy.
  • The government’s plan said the target for this year’s fiscal deficit at the national level would rise to 3 percent, from a target of 2.3 percent last year. But by most estimates, the actual deficit last year was already over 3 percent.
  • China’s central government has a fairly low debt by international standards; what are deeply indebted are the country’s corporate sector and local governments. But the Ministry of Finance has nonetheless been reluctant to allow a large, persistent deficit to form, particularly as China may yet face very heavy costs to help banks with the costs of large loans to nearly insolvent state-owned enterprises.
  • One of the most surprising was a proposal to expand China’s value-added tax to financial services. Banks would face a 6 percent tax on the interest that they collect on loans.
  • Since the global financial crisis, there have been many calls in the West for broadening value-added taxes to encompass financial services,
ecfruchtman

North Korea is closer towards nuclear capability - 0 views

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    China's President Xi Jinping calls for a "peaceful" resolution to tensions on the Korean Peninsula during a phone call with President Donald Trump as the USS Carl Vinson aircraft carrier strike group churned toward the contested region.
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    China's President Xi Jinping calls for a "peaceful" resolution to tensions on the Korean Peninsula during a phone call with President Donald Trump as the USS Carl Vinson aircraft carrier strike group churned toward the contested region.
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