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Begin New Search Political Geography China Content Type Journal Article Publication Year within 5 Years Publication Year within 25 Years

131. China’s Economy: More Debt than Meets the Eye

Author:
Antonio Graceffo
Publication Date:
11-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Since the beginning of this year, investment banks and international financial organizations, including the International Monetary Fund and the World Bank, have steadily downgraded their forecasts for the People’s Republic of China’s (PRC) GDP growth in 2022 to around 3.2 percent (Nikkei Asia, October 7). Most analysts agree that Beijing is in a difficult economic position, but the situation has the potential to become far worse due to off-balance sheet liabilities. Such debt risks defaulting, or may otherwise need to be covered by the central government. Another drag on the country’s balance sheet that has yet to fully hit home is the impact of Belt and Road Initiative (BRI) financing. Due to economic problems and debt crises in BRI partner countries, a large percentage of the initiative’s loans may have to be forgive or at least restructured. Before looking at its financing and hidden liabilities, it is necessary to establish an overall picture of the current PRC economy across a broad spectrum of indicators.
Topic:
Debt, Economy, Economic Growth, Belt and Road Initiative (BRI), and Investment
Political Geography:
China and Asia

132. China Increases Support for Pakistan’s Naval Modernization with an Eye on the Indian Ocean

Author:
Syed Fazl-e-Haider
Publication Date:
11-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In mid-July, the People’s Liberation Army (PLA) Navy and the Pakistan Navy (PN) held the “Sea Guardians-2” exercise in the waters off Shanghai (China Brief, October 4; Pakistan Television, July 12). The joint naval drills focused on neutralizing maritime security threats, particularly those that might jeopardize strategic sea lanes. The bilateral exercise also included joint target practice, anti-submarine, anti-aircraft and anti-missile drills (China Military Online [CMO], July 10). The drills built on the first iteration of the exercise, Sea Guardians-1, which was held in January 2020 in the North Arabian Sea off Karachi, Pakistan. The participation in these exercises of the guided missile frigate Taimur, which is the most advanced warship built by China for the PN, demonstrates the increasing level of Chinese support for the training and modernization of Pakistan’s naval forces (Global Times, July 10). Bilateral military ties, which are a mainstay of the China-Pakistan all-weather friendship and strategic partnership, have strengthened in recent years. China is the main supplier of military equipment to Pakistan, which from 2017-2021 absorbed nearly 47 percent of all Chinese arms exports (China Brief, March 25). In a move to further deepen defense ties, China provided Pakistan with J-10C multi-role fighters in late 2021 (South Asian Voices , April 12). In June, a high-powered Pakistani delegation comprising top brass from the army, navy and air force paid a visit to China at a time when tensions between China and the West were on the rise (CMO, June 12). The visit was part of the Pakistan-China Joint Military Cooperation Committee (PCJMCC), which is the highest body involved in facilitating bilateral defense cooperation. Pakistan’s Chief of Army Staff General Qamar Javed Bajwa also attended the top-level committee’s meeting, along with senior-most counterparts in the PLA. Both countries vowed to further deepen their strategic partnership in challenging times and enhance their joint military cooperation in training, technology and counterterrorism (Express Tribune , June 12).
Topic:
Bilateral Relations, Partnerships, Navy, Modernization, and Strategic Planning
Political Geography:
Pakistan, China, Asia, and Indian Ocean

133. Can Beijing be Flexible on U.S. Policy?

Author:
John Van Oudenaren
Publication Date:
10-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
General Secretary Xi Jinping did not mention “America” in his opening report to the 20th Party Congress (Xinhua, October 16). Nevertheless, Xi made clear that China faces a difficult international environment, precipitated in large part by the U.S. challenge, which threatens the realization of national rejuvenation. For Xi, the threat appears particularly acute in two areas: technology and Taiwan. He called for winning the “battle of key core technologies” by building on breakthroughs in areas such as supercomputing and quantum computing, space exploration, nuclear energy, satellite navigation and biomedicine (Xinhuanet, October 16). On Taiwan, Xi issued a thinly veiled ultimatum to Washington, stating that the People’s Republic of China (PRC) will strive for “peaceful reunification” to incorporate Taiwan into the Motherland, which he called “an inevitable requirement for realizing the great rejuvenation.” Should this approach fail, Beijing reserves the right to employ military force to counter “interference by external forces” and “Taiwan independence” separatists (Central Committee Taiwan Work Office, October 16).
Topic:
Foreign Policy, International Cooperation, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

134. The Ukraine Crisis and China-India Relations

Author:
Amrita Jash
Publication Date:
10-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On March 25, State Councilor and Foreign Minister Wang Yi made a surprise visit to India after stopovers in Pakistan and Afghanistan (Ministry of Foreign Affairs of the People’s Republic of China [FMPRC], March 25). The visit was the first by a high-level Chinese official to India since December 2019 and the ongoing border standoff that broke out in May 2020 along the Line of Actual Control (LAC) in Eastern Ladakh. The sudden stopover, which was not announced in advance, generated speculation over Beijing’s intentions, particularly as it occurred in the immediate aftermath of Russia initiating its “special military operation” against Ukraine on February 24. This resulted in international condemnation and boycotts, and the imposition of economic sanctions by the U.S., the European Union, Japan and others on Russia. However, countries such as China and India, made an exception by choosing neutrality in condemning Russia. But did this shared position make any difference in improving China-India ties? Hitherto, relations have not substantively improved, notwithstanding the modest progress in the recent border talks. Following the 16th round of Corps Commander level talks on July 17, China and India stressed the “four-point consensus” they had reached on the resolution of the border issues (Xinhuanet, July 29). This “consensus” was further cited as the reason for the disengagement of troops from Patrolling Point-15 in Gogra-Hot Springs (Global Times, September 9). Notably, the disengagement followed a year-long impasse in the talks process and coincided with both countries’ participation in the Shanghai Cooperation Organization summit.
Topic:
Bilateral Relations, Political stability, Crisis Management, and Russia-Ukraine War
Political Geography:
Russia, China, Ukraine, India, and Eastern Europe

135. Exploring the Domestic Foundations of Chinese Economic Sanctions: The Case of Australia

Author:
Scott Waldron, Darren J. Lim, and Victor Ferguson
Publication Date:
10-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
More than two years have passed since the People’s Republic of China (PRC) began imposing a broad range of restrictions on Australian trade in what is widely regarded to be a campaign of economic coercion. Despite the apparent sanctions affecting numerous Australian export industries with high exposure to the mainland market, there is now a broad consensus that Beijing’s efforts have been unsuccessful. [1] The measures had a negligible impact on the Australian macroeconomy and did not drive Canberra to make any policy concessions to address Beijing’s long list of ostensible grievances (Australian Department of Treasury, September 6, 2021). It is well established that economic sanctions often fail to change state behavior, typically because the political demands of the sanctioning state are too high. But most sanctions still impose significant economic costs on their targets. Curiously—despite a widely held view that Australia was highly vulnerable to Chinese economic pressure (Global Times, June 10, 2020)—Beijing’s campaign fell short and appeared poorly targeted. The overwhelming majority of affected Australian industries were able to redirect their exports to other markets without significant friction.[2] The economic costs of some barriers, such as those on barley, were significantly higher for China than Australia (Australian Bureau of Agricultural and Resource Economics and Sciences, June 2020). Some of Australia’s industries that are most reliant on the Chinese market were left untouched altogether. [3] If—as is widely assumed—China’s objective was to coerce, why did its apparent sanctions not hit the mark and asymmetrically impose politically significant costs on the Australian economy? Exploring this question can yield new insight into the dynamics shaping Chinese economic sanctions—an instrument of statecraft Beijing continues to employ regularly, including recently against Lithuania in 2021 and Taiwan in early August (PRC Charge d’affaires Lithuania, May 3; United Daily News, August 5).
Topic:
Sanctions, Economy, and Trade
Political Geography:
China, Asia, and Australia

136. China’s Interests in Afghanistan One Year After the U.S. Withdrawal

Author:
Zafar Iqbal Yousafzai
Publication Date:
10-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In late June, a severe earthquake struck southeastern Afghanistan. In the immediate aftermath of the disaster, the People’s Republic of China (PRC) announced it would provide 50 million RMB ($7.2 million) in emergency aid, including tents, blankets, cots and other sorely needed supplies to the impacted areas (People’s Republic of China Ministry of Foreign Affairs (FMPRC), June 25). Beijing invests in Afghanistan to further its long-term economic, strategic and political interests. Since the U.S. withdrawal last year, China has had an opportunity to advance its interests and deepen its clout in Afghanistan. When Kabul fell, China did not condemn the move and announced that it respected the choice of the Afghan people—a sign of goodwill from Beijing to the Taliban that it subscribes to the narrative that the new government has the full support of the population (Xinhua, August 16, 2021). China has never been militarily involved in Afghanistan. Uyghur militants have found safe-haven in the country for decades, but the level of threat they pose to the PRC is debated even among Chinese analysts (China Brief, February 11). Despite such long-running concerns, Beijing was unperturbed by the Taliban’s return to power in Afghanistan last year. The PRC kept its embassy open through the fall of Kabul, and Beijing has sustained extensive diplomatic contact with the Taliban leadership to safeguard its security, economic and strategic interests in Afghanistan (Global Times, August 17, 2021). In fact, the PRC is seeking to carry out a complex balancing act in Afghanistan. Concerns about Afghanistan becoming a safe haven for extremist groups that could target neighboring states persist, but Beijing also perceives huge opportunities in Afghanistan’s natural resources, markets and potential to serve as a key node linking western China with South and Central Asia. In order to achieve a stable and secure Belt and Road Initiative (BRI), which will advance China’s interests throughout Central Asia, Beijing needs a stable Afghanistan.
Topic:
Foreign Policy, Diplomacy, Taliban, Political stability, and Strategic Interests
Political Geography:
Afghanistan, China, Asia, and United States of America

137. The Economic Outlook for Xi’s Third Term: Mounting Challenges, Dwindling Fiscal and Monetary Options

Author:
Alicia Garcia-Herrero
Publication Date:
09-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
China’s decade-long economic slowdown is accelerating. The pace has picked up since former U.S. President Donald Trump launched his trade war against China in early 2018, and even more so since the COVID-19 pandemic started in early 2020. This year has been particularly difficult as stubborn zero-COVID policies have ground the economy to a halt, further pushed by the bursting of the real estate bubble that had been China’s most important engine of growth for decades. Many ask themselves how much of China’s deceleration is cyclical and how much is structural, but also how much can be reverted. On the first issue, the cyclical element of the ongoing deceleration of the Chinese economy is clearly important and adds additional downward pressure to the well-known structural factors, such as aging and decreasing labor productivity.
Topic:
Monetary Policy, Economy, Xi Jinping, and Zero-COVID
Political Geography:
China and Asia

138. All the President’s Men – Corruption in the Xi Jinping Era

Author:
Martin Purbrick
Publication Date:
09-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Since the opening up of the Chinese economy by Deng Xiaoping in 1979, China has grown wealthy, but corruption has also become pervasive at all levels of the Chinese Communist Party (CCP). Corruption has been a part of Chinese business and governance for millennia, but despite the grand pronouncements of the CCP about eradicating corruption, it has not only endured under the current system but grown to extraordinary heights. Due to deeply entrenched corruption across the government, as well as the variable spread of economic benefits, this issue will remain a severe challenge for the CCP as the Xi Jinping era enters its second decade. The necessity for the state security agencies to support political control by Xi will also ensure that anti-corruption purges continue to impact the police and security agencies.
Topic:
Security, Corruption, Economy, and Xi Jinping
Political Geography:
China and Asia

139. Will the Xi Jinping Leadership Take Up Reformist Policies After the 20th Party Congress?

Author:
Willy Wo-Lap Lam
Publication Date:
09-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
That President Xi Jinping and his faction will dominate the 20th Party Congress is apparent from the Politburo announcement that the week-long, five-yearly conclave will take place on October 16. The Politburo meeting, which was held on August 30, said that the guiding principle of the party and country would remain “Xi Jinping Thought on Socialism with Chinese characteristics for a new era” (Gov.cn, October 16). The Politburo reasserted that the Chinese Communist Party (CCP) would follow principles laid down by Mao Zedong, Deng Xiaoping, Jiang Zemin, Hu Jintao, and above all, Xi Jinping. However, the dictums on reform and the open door – as well as the “lie low” foreign policy – promulgated by “Chief Architect of Reform” Deng in the 1980s and 1990s were conspicuously absent from the Party Congress announcement. Instead, the communique emphasized the so-called “three continuances” (三个继续, san ge jixu). This is a reference to Xi’s efforts to uphold Mao Zedong-style “common prosperity” (共同富裕, gongtongfuyu); to sustain “party construction” (党的建设 (dang de jianshe) in order to ensure the loyalty of cadres; and to work toward the formation of a “community with a shared future for mankind” (人类命运共同体,renlei mingyun gongtongti) (Xinhua, August 30; Ming Pao, August 30).
Topic:
Politics, Reform, Leadership, Domestic Politics, and Xi Jinping
Political Geography:
China and Asia

140. The Russia-India-China Trilateral After Ukraine: Will Beijing Take the Lead?

Author:
Jagannath P. Panda and Wooyeal Paik
Publication Date:
09-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
At the Shanghai Cooperation Organization (SCO) foreign ministers’ meeting in late July, which included China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan, People’s Republic of China (PRC) State Councilor and Foreign Minister Wang Yi exhorted member states to uphold the “Shanghai Spirit” (上海精神, Shanghai Jingshen) of mutual trust, mutual benefit, equality, mutual consultations, diverse civilizations, and the pursuit of common development (Gov.cn, July 29). He then presented a “five-point proposal” for building an SCO community “with a shared future” (CGTN, July 30). In doing so, Wang echoed President Xi Jinping’s call in his four-point proposal at the BRICS (Brazil-Russia-India-China-South Africa) summit in June —albeit via a rather elemental poetic allegory of fire, wind, and water –to embark on a “righteous course” toward a shared global future premised on inclusive, comprehensive and close win-win cooperation (Qiushi, June 24). BRICS already has a “Plus” mechanism and is mulling an expansion to include “like-minded” partners.
Topic:
Foreign Policy, Diplomacy, and Russia-Ukraine War
Political Geography:
Russia, China, Europe, Ukraine, India, and Asia