CHINAMacroReporter

February 20, 2021
‘UNDERSTANDING DECOUPLING: Macro Trends and Industry Impacts’
‘Comprehensive decoupling is no longer viewed as impossible: if the current trajectory of U.S. decoupling policies continues, a complete rupture would in fact be the most likely outcome. This prospect remains entirely plausible under the Biden administration.’
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February 20, 2021
‘Europe can’t stay neutral in US-China standoff’
‘China aims to create a world that is not safe for Europe — strategically, economically or ideologically. Xi is actively striving to undermine the stature of democracies in the global order. The more power China amasses, the less tolerant it will become with any government that won’t toe its line. China also represents a long-term economic threat to Europe — not merely because it is an advancing competitor in a global market economy, but because Beijing’s policies are designed to use and abuse that open world economy to eventually dominate it.
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February 20, 2021
‘Beat China: Targeted Decoupling and the Economic Long War'
‘The economy is the primary theater of our conflict with China. It is now clear that the U.S. and Chinese economies are too entangled, particularly in critical sectors such as medicine, defense, and technology.'
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February 19, 2021
‘No, China is not the EU’s top trading partner'
‘This week the media seized on a report by Eurostat, the European Union’s statistical agency, to declare that China surpassed the United States in 2020 to become the EU’s main trade partner. This is simply not true.’
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February 18, 2021
‘China faces fateful choices, especially involving Taiwan’
'Should Mr Xi order the People’s Liberation Army to take Taiwan, his decision will be shaped by one judgment above all: whether America can stop him. If China ever believes it can complete the task at a bearable cost, it will act.’ ‘
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February 18, 2021
'An Unsentimental China Policy'
'Jake Sullivan, wrote in Foreign Affairs in 2019, “The era of engagement with China has come to an unceremonious close.”Yet it is worth remembering what engaging China was all about.’ For most of the past half century, efforts to improve ties with the country were not about transforming it. Judged by its own standards, U.S. engagement with China succeeded. It was only after the Cold War that a desire to change China became a prominent objective of U.S. policy.’
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February 18, 2021
'Like It Or Not, America Is Still A Superpower'
‘The twentieth century was littered with the carcasses of foreign leaders and governments that misjudged the United States, from Germany (twice) and Japan to the Soviet Union to Serbia to Iraq. Perhaps the Chinese, careful students of history that they are, will not make the mistake that others have made in misjudging the United States.’
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February 16, 2021
'Is China experiencing an advance of the state sector?'
‘The value-added produced by state-owned enterprises has usually been in the range of 25-30% of China’s GDP. And what’s really striking about those numbers is that they just haven’t changed very much over the past 25 years. The share of China’s economic output being produced by SOEs today, under Xi Jinping, is not significantly different than it was under Hu Jintao, or even in the later years of Jiang Zemin.’
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February 16, 2021
‘China Blocked Jack Ma’s Ant IPO After Investigation Revealed Likely Beneficiaries’
‘Behind layers of opaque investment vehicles that own stakes in Ant Financial are a coterie of well-connected Chinese power players, including some with links to political families that represent a potential challenge to President Xi and his inner circle. Those individuals, along with Mr. Ma and the company’s top managers, stood to pocket billions of dollars from a listing that would have valued the company at more than $300 billion.’
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February 14, 2021
How to Keep U.S.-Chinese Confrontation From Ending in Calamity
'The two countries need to consider something akin to the procedures and mechanisms that the United States and the Soviet Union put in place to govern their relations after the Cuban missile crisis—but in this case, without first going through the near-death experience of a barely avoided war.'
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February 14, 2021
The United States, China, and Taiwan: A Strategy to Prevent War
‘We believe that a crisis is building over Taiwan and that it is becoming the most dangerous flashpoint in the world for a possible war that involved the United States of America, China, and probably other major powers.'
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February 13, 2021
Why China Will Go Green - Really
‘To Communist Party leaders, greenery increasingly aligns with their economic and political interests. China, a populous country that is cruelly lacking in clean water and arable farmland, and which hates having to rely so heavily on imported energy, has a selfish interest in embracing what President Xi Jinping calls “ecological civilisation”.’
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February 11, 2021
'The Biden Team Wants to Transform the Economy. Really.'
‘Biden and his more activist advisers hope to modernize key industries and counter an economic threat from China, swiftly emerging as the world’s other superpower. “The package that they put together is the closest thing we’ve had to a broad industrial policy for generations, really,” says Scott Paul, the president of the Alliance for American Manufacturing.’
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February 10, 2021
‘What the ‘Hong Kong Narrative’ gets wrong'
‘For a significant cohort of the [“pro-democracy”] protesters, the more accurate label would be “anti-China activists.” The one thing that seems to unite them is not a love of democracy, but a hatred of China.'
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February 8, 2021
Why the Anglosphere sees eye to eye on China
‘Some of America’s European allies are very wary of what they fear will be a new cold war with China. By contrast, the US is getting more support from the UK, Australia and Canada.’
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February 7, 2021
' "Longer Telegram" | To Counter China’s Rise, the U.S. Should Focus on Xi'
A strategy that focuses more narrowly on Xi, rather than the CCP as a whole, presents a more achievable objective.'
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February 7, 2021
'The Sources of Soviet Conduct'
'The main element of any United States policy toward the Soviet Union must be that of a long-term, patient but firm and vigilant containment of Russian expansive tendencies.’
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February 7, 2021
'Remarks by President Biden on America's Place in the World'
“We’ll confront China’s economic abuses; counter its aggressive, coercive action; to push back on China’s attack on human rights, intellectual property, and global governance.”“But we are ready to work with Beijing when it’s in America’s interest to do so. We will compete from a position of strength by building back better at home, working with our allies and partners, renewing our role in international institutions, and reclaiming our credibility and moral authority, much of which has been lost.”“That’s why we’ve moved quickly to begin restoring American engagement internationally and earn back our leadership position, to catalyze global action on shared challenges.”
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February 7, 2021
'In Search of Today’s George Kennan'
‘Kennan provided a framework to break through the bitter divide between those who believed America should return to its prewar isolationism, and those who believed the USSR was itching for a dramatic showdown with the capitalist west.’
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February 7, 2021
' "Longer Telegram" Sets Off Fierce Global Debate'
'The fierce global debate set off this week by a thought-provoking paper - “TheLonger Telegram: Toward a New American China Strategy” – has underscored the urgency and difficulty of framing a durable and actionable U.S. approach to China as the country grows more authoritarian, more self-confident and more globally assertive.'
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February 7, 2021
The 'Longer Telegram' & Its Discontents
Why everyone wants to be George Kennan‘In 1947 X penned his history-changing “Sources of Soviet Conduct” in Foreign Affairs,’ wrote Edward Luce in the Financial Times in 2018.‘The piece, which crystallised America’s cold war containment strategy, was the making of George F Kennan’s life-long reputation as a master of geopolitics.’‘ As the architect of a doctrine that won the cold war.’
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February 7, 2021
'Brookings experts analyze President Biden’s first foreign policy speech: Focus China'
'To respond effectively, Biden argued, America will need to rebuild leverage, e.g., by pursuing domestic renewal, investing in alliances, reestablishing U.S. leadership on the world stage, and restoring American authority in advocating for universal values.'
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February 7, 2021
'Why the ‘Longer Telegram’ Won’t Solve the China Challenge'
‘Perhaps the most problematic aspect of the 'Longer Telegram's' emphasis on Xi—“All U.S. political and policy responses to China therefore should be focused through the principal lens of Xi himself”—is the author’s conclusion that Washington should be seeking to escape from, and even try to effect the removal of, Xi’s leadership because that could restore U.S.-China relations to a potentially constructive path: “its pre-2013 path—i.e., the pre-Xi strategic status quo.” ’
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February 4, 2021
Why Beijing Is Bringing Big Tech to Heel
‘Beijing’s recent antitrust efforts are motivated less by worries about the tyrannical nature of monopoly power than by the belief that China’s tech giants are insufficiently committed to promoting the goal advanced by the Chinese Communist Party (CCP) of transformative technological innovation—and thus may be undermining the effectiveness of Chinese industrial policy.’
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February 3, 2021
'Secretary of State Antony Blinken on U.S. Policy Toward China'
‘There’s no doubt that China poses the most significant challenge to us of any other country, but it’s a complicated one.’
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February 3, 2021
'Burma’s Coup and Biden’s Choice'
‘The top U.S. priority in Asia is limiting Beijing’s ability to control independent states like Burma, which is strategically situated in the Indo-Pacific. The U.S. response needs to take into account China’s regional designs.’
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February 3, 2021
'Myanmar, Burma and why the different names matter'
‘Unlike most of the world, the U.S. government still officially uses "Burma." '
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February 3, 2021
'Coup a further complication for tricky Myanmar-China ties'
‘Even if China played no role at all in ousting Suu Kyi, Beijing is likely to gain still greater sway over the country.’
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February 3, 2021
‘Beijing Won’t Let America “Compartmentalize” Climate Change'
‘‘You want China to take action on climate change?" asks Xi Jinping. "Let’s talk about what you’re going to give to get it.’’
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February 3, 2021
Burma: At the Center of the U.S.-China Competition
In today’s issue: 1. China Lays Out Its Position / 2. The U.S. Lays Out Its Position / 3. Burma: At the Center of the U.S.-China Competition / 4. Burma or Myanmar?
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February 3, 2021
'A Conversation with Politburo Member Yang Jiechi'
‘History and reality have shown time and again that these issues concern China's core interests, national dignity, as well as the sentiments of its 1.4 billion people. They constitute a red line that must not be crossed.’
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February 3, 2021
'National Security Advisor Jake Sullivan on U.S. Policy Toward China'
‘Being prepared to act as well to impose costs for what China is doing in Xinjiang, what it’s doing in Hong Kong, for the bellicosity of threats that it is projecting towards Taiwan.’
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February 3, 2021
'Coup Puts Myanmar at the Center of the U.S.-China Clash'
‘Chinese oil and gas pipelines snake across Myanmar from China’s landlocked Yunnan province to the Bay of Bengal—a route that Beijing wants to transform into a broader economic corridor with road and rail connections.’
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February 3, 2021
'Biden's whole-of-National Security Council China strategy'
'National security adviser Jake Sullivan is personally focused on China as a priority, building capacity across departments and agencies and running processes that break down old silos between foreign and domestic policy.'
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January 31, 2021
'Biden’s Nightmare May Be China'
‘The coming years represent the greatest risks since I began covering U.S.-China relations in the 1980s, partly because Xi is an overconfident, risk-taking bully who believes that the United States is in decline.’
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January 31, 2021
Opinion | Marco Rubio: 'China is exploiting U.S. capital markets and workers. Here's what Biden should do.'
‘China can finance its industrial ambitions with the deepest, most liquid capital markets in the world — our own.’
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January 31, 2021
The UK Stands Up, the U.S. Not So Much
“We have honored our profound ties of history and friendship with the people of Hong Kong, and we have stood up for freedom and autonomy—values both the U.K. and Hong Kong hold dear.” British Prime Minister Boris Johnson
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January 31, 2021
'U.S.-China Capital Flows Vastly Underestimated'
‘And yet, debates around US-China passive securities investment suffer from shortcomings similar to those inherent in the early debates about US-China bilateral FDI and VC: official data do not provide a clear picture for policymakers to understand the scope and patterns of two-way investment flows and stocks.’
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January 31, 2021
'Why U.S. Securities Investment in China is Vastly Underestimated'
‘The conduits of US securities investment in China that are obscured or ignored in the US Treasury International Capital (TIC) dataset constitute a majority of all holdings, so these figures vastly underestimate the true scope at the end of 2020.’
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January 31, 2021
'Ted Cruz, Chinese Communist Party Agree: Keep Hongkongers Trapped in China'
‘The bill Cruz blocked, the Hong Kong People's Freedom and Choice Act of 2020, would grant political asylum to any resident of Hong Kong who arrives in the United States, allowing them to remain in the country legally after the expiration of any other visa.'
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January 31, 2021
Analysis: China tests Biden on Taiwan, with eye on another island
‘And it is at Pratas Island where a behind-the-scenes tug-of-war is being played out between the U.S. and China.’
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January 31, 2021
'Top Conflicts to Watch in 2021: The Danger of U.S.-China Confrontation Over Taiwan'
‘While people appear to believe that the Biden administration will strive to avoid acute crisis with China over Taiwan, U.S. policy toward Taiwan only reflects half of the story. The other, and more important half is from China.’
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January 31, 2021
China Tests Biden
In today’s issue: 1. China Tests Biden Over Taiwan / 2. The UK Stands Up, the U.S. Not So Much / 3. Why Impeding U.S.-China Capital Flows Isn't Easy
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January 27, 2021
Xi Jinping: 'Why We All Just Get Along?'
In today’s issue:1. Biden Shows his Hand on China / 2. Xi Shows his Hand on the U.S./ 3. Multi-Lateralism, Chinese-Style / 4. Cooperation or 'Strategic Competition'?
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January 27, 2021
'Xi Jinping Wows Them at Davos'
‘The test for the Biden team is whether it will be tripped up by the feints toward international norms and comity that punctuate Mr. Xi’s pattern of regional aggression.’
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January 27, 2021
Part One | 'Biden’s Opening Salvo on Beijing'
‘The Biden administration is less than a week old, but its most consequential foreign-policy decisions may already be behind it.’
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January 27, 2021
'China’s Xi Champions Multilateralism at Davos, Again'
‘While Xi’s speech may have echoed similar themes from his 2017 address, today’s circumstances are markedly different.’
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January 27, 2021
'China’s Xi Warns Against Confrontation in Veiled Message to Biden'
‘Chinese President Xi Jinping issued a veiled warning against the new Biden administration’s preparations to rally allies to challenge Beijing on a range of issues.’
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January 27, 2021
'China rejects 'strategic competition' and calls on US to cooperate'
‘China wants cooperation, not strategic competition, the Foreign Ministry said Tuesday, a day after the White House said it was looking to form a "new approach" toward China.’
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January 27, 2021
'Xi Jinping at the Virtual Davos: Multilateralism with Chinese characteristics'
‘At the virtual Davos this week, Xi essentially proposed a multilateralism with Chinese characteristics—designed to ensure that international interactions be conducted in accordance with China’s perspectives.’
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January 27, 2021
Part Two | 'Biden’s Opening Salvo on Beijing'
‘China will think carefully before making its next moves, but it’s unlikely to submit tamely to American pressure.’
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January 23, 2021
‘Reasons for Increases In Cross-Border Capital Flows into China’
'Cross-border portfolio capital flows into China have been rising since 2014.'
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January 23, 2021
'Rethinking 2020: What’s Overlooked and What’s Overhyped'
‘If a single word were chosen to define US-China in 2020, “decoupling” would be a good candidate. What has been overlookedis just how little meaningful decoupling actually happened.’
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January 23, 2021
'A Complex Inheritance: Transitioning to a New Approach on China'
‘For the Biden administration to successfully transition to a new and more effective China strategy, the various existing Trump measures should not be treated in the same way.’
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January 23, 2021
‘China’s Easing of Regulations Restricting Foreign Ownership of Financial Firms’
'Foreign firms have only a tiny slice of most segments of this market; they control less than 2 percent of banking assets, for example, and less than 6 percent of the insurance market.'
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January 23, 2021
'Does Xi Jinping Face a Coup Threat?'
In today’s issue: 1. Rest easy. Xi is Safe / 2. China a Career Killer? /3. Rethinking 2020: What’s Overlooked and What’s Overhyped / 4. China’s Financial Opening Accelerates
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January 23, 2021
The struggle over chips enters a new phase
In the 20th century the world’s biggest economic choke-point involved oil being shipped through the Strait of Hormuz. Soon it will be silicon etched in a few technology parks in South Korea and Taiwan.’
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January 23, 2021
'Why Chinese Companies are Having a Tough Time Recruiting in the U.S.'
‘I have seen senior executives who take on very public roles within some of these Chinese companies find that their life after those companies has been more limited. It even has a bit of a taint. A bit like working for tobacco.’
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January 23, 2021
H.R. McMaster: 'Biden would do the world a favor by keeping Trump’s China policy'
‘No doubt the Biden administration will see ways to improve the strategic framework we devised, but continuity with the approach is essential.’
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January 23, 2021
'Does Xi Jinping Face a Coup Threat?'
‘So if you're an autocrat, you really have to be nervous about what's the military doing and is the military coming after me?’
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January 23, 2021
‘China’s Financial Opening Accelerates’
‘Despite predictions by some observers that the United States and China are headed for a “decoupling,” China’s integration into global financial markets is accelerating.’
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January 22, 2021
Confronting the Challenge of Chinese State Capitalism
‘When a U.S. or European firms compete against, say, COSCO Shipping or Huawei, it is the entirety of the Chinese government’s balance sheet that it must contend with, not just an individual firm.’
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January 20, 2021
'When it comes to China, Team Biden sounds a lot like Team Trump'
‘As Biden has announced his picks for cabinet positions and senior policy advisers, it has been almost impossible to distinguish his new team's China rhetoric from that of the departing Trump officials.’
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January 20, 2021
'When it comes to China, Team Biden sounds a lot like Team Trump'
In today’s issue: 1. Biden's China Hawks / 2. Keep Trump's China Policy [?] / 3. Breaking Down Biden's China Challenges
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January 16, 2021
'Jack Ma Misreads Xi Jinping'
"The reason why Jack Ma and others could build enormous Internet companies is because the Party had no idea what they were doing. They became famous globally and made China look very good, but then the Party had to figure out how to get their arms around them."
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January 16, 2021
'China: Taming the Overshoot'
‘We expect GDP growth to improve to 7.1% in 2021 from 2.2% in 2020.Realized growth will likely overshoot potential growth in 2021, but from a policy perspective, we expect that the authorities would prefer to avoid an aggressive overshoot in one particular year in exchange for a smoother and more sustainable growth profile over the next five years.’
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January 16, 2021
'Financial Technology Is China’s Trojan Horse'
‘Chinese fintech firms function like a geoeconomic Trojan horse.’
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January 16, 2021
'Where in the World is Jack Ma?'
In today’s issue: 1. Where in the World is Jack Ma?'The CCP's Ambivalence about the Private Sector’‘Jack Ma Misreads Xi Jinping’ / 2. China’s Fintech Threat‘Financial Technology Is China’s Trojan Horse’ / 3. 2021 Economic Outlook: Sunrise in a Fractured World’ | CHINA
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January 13, 2021
'Kurt Campbell, Biden’s pick for a new NSC Asia position, should reassure nervous allies'
‘Asia watchers in Washington and America’s Asian allies should be reassured that Biden is planning to elevate the importance of the Indo-Pacific region by creating this coordinator role and staffing it with someone so senior.'
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January 13, 2021
1. 'Restoring Balance'
‘China’s growing material power has indeed destabilized the region’s delicate balance and emboldened Beijing’s territorial adventurism. Left unchecked, Chinese behavior could end the region’s long peace.’
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January 13, 2021
3. 'Forging Coalitions'
‘The principal challenge facing the United States is to bridge European and regional approaches to Chinese challenges.’
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January 13, 2021
'How America Can Shore Up Asian Order'
‘This combination of Chinese assertiveness and U.S. ambivalence has left the Indo-Pacific region in flux.'
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January 13, 2021
2. 'Restoring Legitimacy'
‘Negotiating Beijing’s role in this order is the most complex element of the overall endeavor.’
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January 13, 2021
Kurt Campbell & Biden Asia Policy
In today’s issue: 1. Kurt Campbell: Biden's 'Indo-Pacific Coordinator' / 2. 'How America Can Shore Up Asian Order' by Kurt Campbell
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January 9, 2021
'Matt Pottinger resigns, but his China strategy is here to stay'
‘Even though Pottinger’s name was largely unknown to the public, his influence on U.S. foreign policy will be felt for years to come.’
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January 9, 2021
'The Relevant Organs' Pro Tip: 'You Definitely Need a Show Trial'
Spitballing here, GOP friends, but Josh Hawley, Ted Cruz, Ron Johnson and Marjorie Taylor-Greene would make an excellent Gang of Four, if you need a show trial.
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January 9, 2021
How the Chinese reacted to the incident at the Capitol
In this issue: 1. China Reacts / ‘On Double Standards’ - 'Chinese netizens jeer riot in US Capitol as "Karma," say bubbles of "democracy and freedom" have burst' - 'A Few Tweets from Hu Xijin 胡锡进, Editor of The Global Times' / 2. ‘Architect of Trump China Policy Resigns’ - 'Matt Pottinger resigns, but his China strategy is here to stay' / 3. A Pro Tip from 'The Relevant Organs' - 'Dealing with Insurrectionist Leaders the Chinese Way'
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January 9, 2021
'On Double Standards'
‘Besides, facts are there, beyond anyone's denial, regardless of whether they came up in the Chinese media reports or not.’
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January 6, 2021
'Mo money, Ma problems - Chinese trustbusters’ pursuit of Alibaba is only the start'
'Chinese trustbusters long resisted hobbling an industry seen as world-beating, and backed in Beijing. Now, as in the West, they fret that a few giants control indispensable services—e-commerce, logistics, payments, ride-hailing, food delivery, social media, messaging.’
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January 6, 2021
'Mo Money, Ma Problems'
In today’s issue: 1. Eurasia Group| ‘Top Risks of 2021’ / 2. Biden & the EU-China Investment Agreement / 3. The EU-China Investment Agreement: Pro & Con / 4. China's Antitrust Investigation into AliBaba
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January 6, 2021
PRO | 'The Importance of the EU, China Investment Deal'
‘But we should not have waited for the Biden administration to sort things out. Wait for what? We don't know if China will be more responsive if the three parties sit together. We don't have a timeline. Shall we wait another two or three years?’
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January 6, 2021
'China and E.U. Leaders Strike Investment Deal, but Political Hurdles Await'
‘China appeared eager to reach an agreement before Mr. Biden takes office in January, calculating that closer economic ties with the Europeans could forestall efforts by the new administration to come up with an allied strategy for challenging China’s trade practices and other policies.’
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January 6, 2021
'China’s Pro-Monopoly Antitrust Crusade'
‘But Chinese regulators are unlikely to stop at Alibaba; China’s entire private sector has a target on its back.’
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January 6, 2021
‘Top Risks of 2021’: CHINA
'Overall, this year will experience an expansion of a high level of US-China tensions.'
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January 6, 2021
CON | 'Europe has handed China a strategic victory'
“We’ve allowed China to drive a huge wedge between the US and Europe.”
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January 6, 2021
'With Concessions and Deals, China’s Leader Tries to Box Out Biden'
‘Mr. Biden has pledged to galvanize a coalition to confront the economic, diplomatic and military challenges that China poses. China clearly foresaw the potential threat.’
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January 5, 2021
'Sansha City in China's South China Sea Strategy: Building a System of Administrative Control'
‘Sansha City, headquartered on Woody Island in the Paracel Islands, has created a system of party-state institutions that have normalized administrative control in the South China Sea. This system ultimately allows China to govern contested areas of the South China Sea as if they were Chinese territory.’
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January 1, 2021
Competition With China Could Be Short and Sharp
‘The bad news is that over the next five to ten years, the pace of Sino-American rivalry will be torrid, and the prospect of war frighteningly real, as Beijing becomes tempted to lunge for geopolitical gain.’ / ‘Historically, the most desperate dashes have come from powers that had been on the ascent but grew worried that their time was running short.’
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October 7, 2020
'Rivers of Iron': Changing the Face of Asia
‘But what's happened now is that Southeast Asia is rich enough to contemplate such infrastructure and that the Chinese have the technology, money, and high-speed rail industry so that they can both finance or help finance and build it.’
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August 27, 2020
Why China's Economy is Growing Faster than Others
‘First is China's relatively aggressive and decisive measures on the COVID public health crisis itself that managed to get the pandemic under control much faster than the other large economies.’ ‘The relative success in controlling the pandemic translates into how much people are willing to go back to their normal lives, to their jobs, and the like.’
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May 20, 2020
The Chinese Communist Party Fears Ending Up Like the Soviet Union
‘The propaganda ministry - within four to six weeks - managed to turn China into a problem for Europeans. China’s standing in Europe is eroding by the day.'
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May 13, 2020
The Party is Infallible
'The Hong Kong demonstrations can never be because of policy mistakes by the Communist Party itself.’ During our interview, Tony Saich of the Harvard Kennedy School told me: ‘Hong Kong, with its responses to the demonstrations, and the Coronavirus are both illustrative examples of how the culture of the Communist Party and the traditions it's built up over almost a hundred years reflect the way it behaves when it's confronted by certain crises.’
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May 6, 2020
The Phase One Trade Deal
‘The good news is that 80% of our members said they thought the Phase One agreement was a good thing.' 'But only 19% said it was worth it.' 'What the 80% said they are happy about was that there no more new tariffs were coming immediately.’
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May 2, 2020
South China Sea & Taiwan
'It would not be accurate to say China claims the entire South China Sea as its sovereign territory because the Chinese are unclear about what exactly their claim is and what it is based on.'
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April 29, 2020
Why Inflation Should Not Be A Problem
‘This is a crisis where the first chair is held by the public health officials, and the second chair is held by the fiscal authorities. We at the Fed have the freedom to be able to move relatively quickly, but we're the third chair here, trying to help out where we can.’
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April 25, 2020
China, America, & the 'Jaws Syndrome'
‘Both Trump and Xi have a fundamental political divide problem that the COVID-19 epidemic has exposed and made more apparent – and made substantially worse.’
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April 22, 2020
Why We Need Stronger Global Institutions
‘The trade war was actually about the dissemination of knowledge, knowledge transfer, technological transfer.’ ‘A great irony. We need global institutions or arrangements to deal with trade, technology, and health because individuals, corporations, and national governments cannot.’
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South China Sea & Taiwan

'It would not be accurate to say China claims the entire South China Sea as its sovereign territory because the Chinese are unclear about what exactly their claim is and what it is based on.'
by

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CHINADebate

May 2, 2020
South China Sea & Taiwan

SOUTH CHINA SEA

1. SOUTH CHINA SEA: China's Claims

2. SOUTH CHINA SEA: China's Energy Intimidation

TAIWAN

1. TAIWAN: China Ramps Up Intimidation

2. TAIWAN: Is Now the Time for China to Invade?

3. TAIWAN: Could China Conquer Taiwan?

4. TAIWAN: Will the U.S. Defend Taiwan?

SOUTH CHINA SEA

1. SOUTH CHINA SEA: China's Claims

For more on China's claims, read the 501- page ruling, 'IN THE MATTER OF THE SOUTH CHINA SEA ARBITRATION.'

'It would not be accurate to say China claims the entire South China Sea as its sovereign territory because the Chinese are unclear about what exactly their claim is and what it is based on.'

Malcolm Riddell: ‘How do the Chinese justify their claims in the South China Sea?’

Bonnie Glaser: ‘The Chinese have never really made clear - I would say they are deliberately ambiguous - about what their claims are.’

  • ‘So it would not be accurate to say China claims the entire South China Sea as its sovereign territory because the Chinese are unclear about what exactly their claim is and what it is based on.'
  • 'And that applies to the Nine-Dash-Line (above) that China uses to assert sovereignty.’

‘The Chinese have said the South China Sea is historically theirs, based on their discovery of the islands, their naming of the islands, they're using of the islands.’

  • ‘The Chinese have asserted that because they were there first, that they have rights to fish or rights to energy, regardless where those take place in the South China sea.’

‘But the Philippines brought a suit against China disputing its claims.’

  • ‘And a July 2016 ruling by an arbitral tribunal, formed under the Convention on the Law of the Sea, found in favor of the Philippines; China rejected the ruling.’

‘Among other things, the tribunal found.’

  • ‘that China's “Nine-Dash Line” is invalid.’
  • ‘that historic rights - in this particular instance in the Spratlys - is not the basis for a legal claim.’
  • ‘that China’s assertion of a 200 nautical mile exclusive economic zone around these land features because they were islands is invalid.’

'So, the most China can claim now is in accordance with this ruling, even though it rejected it.’

  • ‘The Chinese are trying to come up with a claim of 12 nautical miles of exclusive territorial sea around the islands - not a blatant violation.’
  • ‘The United States challenges even these claims by sailing inside and through them.’

2. SOUTH CHINA SEA: China's Energy Intimidation

from the ASIA MARITIME TRANSPARENCY INITIATIVE, CSIS

‘When any of these countries has tried to survey for oil or drill for oil, China has very quickly responded and intimidated them from doing so.’

Malcolm Riddell: ‘What is China’s position on oil & gas exploration and drilling in the South China Sea?’

Bonnie Glaser: ‘China considers the South China sea to be a core interest.’

  • ‘We have seen over the last few years that China is pursuing its objective of gaining control over activities in the South China sea.’

‘In most instances, the Chinese are relying on paramilitary forces and maritime militia really to advance their administrative control and to prevent other countries - other claimants in the region – from developing new oil and gas sources.’

  • ‘The countries that are really the targets are the Philippines, Malaysia, and Vietnam.’

‘When any of these countries has tried to survey for oil or drill for oil, China has very quickly responded and intimidated them from doing so.’

  • ‘This is really to signal that China is no longer going to tolerate anything other than joint development.’
  • ‘If a country wants to survey for oil or drill, it's going to have to do so jointly with a state-run Chinese company.’

Malcolm: ‘How does China intimidate these countries?’

Bonnie: ‘Well, for example, in the last just a couple of months we’ve yet another episode of China's intimidation taking place off the coast of Malaysia.’

  • ‘Here’s what is happening.’

‘In December, a Malaysian state-run energy company contracted a vessel to explore two areas in the South China Sea, off the Malaysian coast, where has an extended continental shelf claim.‘

  • ‘This is in an area that is claimed not only by Malaysia but also by China and Vietnam. Both China of those countries sent ships.’

‘The Chinese sent a survey ship, the Hai Yang Di Zhi 8.’

  • ‘This ship is well-known.’
  • ‘Last year, it was operating last year off the coast of Vietnam, surveying inside of Vietnam's exclusive economic zone, because China was angry about drilling operations that were going on off the coast of Vanguard Bank.’

‘The United States has sent two Navy ships over the past week to these waters near Malaysia.’

  • ‘There is a report that these ships are operating within 50 nautical miles of the Malaysian ship that's there.’

‘The United States doesn't take a position on sovereignty in the South China sea in any of these sovereignty disputes – other than supporting the arbitral tribunal’s ruling in favor of the Philippines again China.’

  • ‘But this is a rare moment where the United States has signaled that it is concerned about Chinese bullying.’
  • ‘We saw once in 2014, the United States had sent a reconnaissance plane, a PA to overfly Second Thomas Shoal when the Chinese were intimidating the Philippines.’
  • ‘Thatwas a very far over a land feature, not a Navy ship close by.’

TAIWAN

1. TAIWAN: China Ramps Up Intimidation

‘Ever since President Tsai Ing-wen was reelected in Taiwan in January, we have seen Beijing ramp up pressure on Taiwan both diplomatically and militarily.’

Malcolm Riddell: ‘What are you seeing in Taiwan cross-strait relations these days?’

Bonnie Glaser: ‘Ever since President Tsai Ing-wen was reelected in Taiwan in January, we have seen Beijing ramp up pressure on Taiwan both diplomatically and militarily.’

‘On the diplomatic side, Taiwan has done a pretty good job of combating COVID-19 and has done so with technology and without shutting down schools or businesses – and is using this to promote itself.’

  • ‘That has led Beijing to be quite concerned about international support for Taiwan to rejoin the World Health Assembly, where it used to be an observer, and about international support expanding more broadly.’
  • ‘Within China, I expect the government is blocking information about Taiwan success - it doesn’t want people in China to see that a Chinese-organized society and democratic polity like Taiwan has been successful.’

‘On the military side, we are seeing a lot more Chinese military exercises against Taiwan.'

  • ‘New things, like the first ever 36-hour endurance nighttime exercise held by the PLA air force.’
  • ‘And large numbers of Chinese aircraft are crossing the centerline in the Taiwan Strait.
  • ‘All in all, a much higher volume and tempo of activities than we had seen prior to the election.'

2. TAIWAN: Is Now the Time for China to Invade?

‘I do not believe that China is going to seize U.S. distraction from the pandemic to invade Taiwan.’

Malcolm Riddell: ‘With the United States and the world distracted by the pandemic, do you see a potential for China to take advantage of to ramp up intimidation on Taiwan or even invade?’

Bonnie Glaser: ‘The U.S. military is mindful of the fact that the PLA might see that its preparedness is not quite what it usually is, given the large number of infections that we've seen in the U.S. military.’

  • ‘And there has been some signaling going on to the PLA to not take advantage of this situation and not miscalculate.’

‘One example:There have been two U.S. Navy transits through the Taiwan Strait already this month [April] - usually they're held once a month.’

  • ‘The Trump administration has made these public – in contrast, the Obama administration did not.’
  • ‘We also saw the B-52 bomber flights after some of the rather provocative Chinese military exercises that were taking place earlier this month.’

‘I do not believe that China is going to seize this opportunity to invade Taiwan.’

  • ‘The risks to China remain quite high, and there is no guarantee that the PLA will succeed.'
  • ‘Also Xi Jinping is consumed with domestic challenges.’

‘That said, I do think that China sees an opportunity to intimidate Taiwan more now - which is what they are doing.’

  • ‘We also see examples of this in Hong Kong and in the South China Sea.’
  • ‘So China’s bullying and intimidation are not limited to Taiwan.’

3. TAIWAN: Could China Conquer Taiwan?

'It's very hard to take over an island - that's of course what Taiwan is.’

Malcolm Riddell: ‘It was conventional wisdom for a great deal of my life, but China didn't possess the capabilities even if it had the will to retake Taiwan. What do you think now?’

Bonnie Glaser: ‘If you just look at the military balance between China and Taiwan, there is no doubt that China has military superiority.’

  • ‘But it's very hard to take over an island - that's of course what most of Taiwan is.’
  • ‘The largest island China could seize is Jinmen or Matsu. It might go after Taiping Island, which is the one land feature that Taiwan occupies in the South China Sea.’
  • ‘But taking over the island of Taiwan itself would be difficult for China.’

‘They are making progress but are still lagging behind in some capabilities.’

  • ‘In amphibious landing capabilities they're definitely catching up - for a while it wasn't a PLA priority, but now it is.’  
  • ‘China would be able to prevent Taiwan from dominating the airspace - it can probably take out Taiwan's fighter fleet. But if Taiwan continues to build its capabilities, for example, in numbers of surface-to-air missiles, it could prevent China from gaining that military superiority in the airspace.’
  • ‘China as good anti-submarine warfare capabilities, which would be against the United States, but also Taiwan.’

‘But even if the Chinese were able to land on the beach and somehow establish control, what would it take to control the entire island? Would there be an insurgency?’

  • ‘Maybe we need to draw some lessons from the protests in Hong Kong.’

‘The young people in Hong Kong are willing to stand up for their freedom. They've been willing to fight in the streets.’

  • ‘Some people think that the young people in Taiwan would not. I'm not so sure.’

‘The young people in Taiwan have grown up in a free society (which of course has only existed since really around 1990).’

  • ‘I think that maybe people – young and old - would fight in order to preserve it.’

4. TAIWAN: Will the U.S. Defend Taiwan?

‘That is my fervent hope.’

Malcolm Riddell: ‘If China did invade Taiwan, what would the U.S. do?’

Bonnie Glaser: ‘There are several factors that that might precipitate a U.S. intervention.’

  • ‘But we'd have to consider how this conflict started.’

‘If it were unprovoked and the Chinese just out of the blue decided we're impatient, we want to take over Taiwan, now is the time.’

  • ‘Yes, I think that the United States would come to Taiwan.’  
  • ‘It becomes a little bit more complicated if Taiwan has taken an action that provoked Beijing - perhaps an action that the United States even discouraged Taiwan from taking.’

‘The other factor is the American public's attitudes towards China - we don't know if Americans would really support the us coming to the defense of Taiwan.’

  • ‘In the past, public opinion polls have not shown that a vast majority of Americans would support it.’
  • ‘But today, we can look at the most recent poll this week showing that 66% of Americans now have a negative view of China.’
  • ‘Now, maybe that is to some extent specific to the COVID-19 So we'll have to see if that holds.’  

‘The strongest advocate of coming to Taiwan's defense is going to be the U.S. Congress.’

  • ‘And they matter.’

‘So I'm of the view that - given the trajectory of American attitudes towards China, and if Taiwan continues to elect leaders, like its current president, who are unprovocative and are just trying to preserve the status quo and Taiwan's autonomy - it is very likely that the U.S. government, Congress, and  American people would support intervention on Taiwan's behalf if China attacked.’

Malcolm Riddell: ‘That is my fervent hope.’