Antony Blinken begins key China visit as tensions rise over new U.S. foreign aid bill

U.S. Secretary of State Antony Blinken has begun a critical trip to China armed with a strengthened diplomatic hand following Senate approval of a foreign aid package that will provide billions of dollars in assistance to Ukraine, Israel and Taiwan as well as force TikTok’s China-based parent company to sell the social media platform -– all areas of contention between Washington and Beijing.

Blinken arrived in Shanghai on Wednesday just hours after the Senate vote on the long-stalled legislation and shortly before President Joe Biden is expected to sign it into law to demonstrate U.S. resolve in defending its allies and partners. Passage of the bill will add further complications to an already complex relationship that has been strained by disagreements over numerous global and regional disputes.

Still, the fact that Blinken is making the trip — shortly after a conversation between Biden and Chinese President Xi Jinping, a similar visit to China by Treasury Secretary Janet Yellen and a call between the U.S. and Chinese defense chiefs — is a sign the two sides are at least willing to discuss their differences.

Of primary interest to China, the bill sets aside $8 billion to counter Chinese threats in Taiwan and the broader Indo-Pacific and gives China’s ByteDance nine months to sell TikTok with a possible three-month extension if a sale is in progress. China has railed against U.S. assistance to Taiwan, which it regards as a renegade province, and immediately condemned the move as a dangerous provocation. It also strongly opposes efforts to force TikTok’s sale.

The bill also allots $26 billion in wartime assistance to Israel and humanitarian relief to Palestinians in Gaza, and $61 billion for Ukraine to defend itself from Russia’s invasion. The Biden administration has been disappointed in China’s response to the war in Gaza and has complained loudly that Chinese support for Russia’s military-industrial sector has allowed Moscow to subvert Western sanctions and ramp up attacks on Ukraine.

Even before Blinken landed in Shanghai — where he will have meetings on Thursday before traveling to Beijing — China’s Taiwan Affairs Office slammed the assistance to Taipei, saying it “seriously violates” U.S. commitments to China, “sends a wrong signal to the Taiwan independence separatist forces” and pushes the self-governing island republic into a “dangerous situation.”

China and the United States are the major players in the Indo-Pacific and Washington has become increasingly alarmed by Beijing’s growing aggressiveness in recent years toward Taiwan and Southeast Asian countries with which it has significant territorial and maritime disputes in the South China Sea.

The U.S. has strongly condemned Chinese military exercises threatening Taiwan, which Beijing regards as a renegade province and has vowed to reunify with the mainland by force if necessary. Successive U.S. administrations have steadily boosted military support and sales for Taiwan, much to Chinese anger.

A senior State Department official said last week that Blinken would “underscore, both in private and public, America’s abiding interest in maintaining peace and stability across the Taiwan Strait. We think that is vitally important for the region and the world.”

In the South China Sea, the U.S. and others have become increasingly concerned by provocative Chinese actions in and around disputed areas.

In particular, the U.S. has voiced objections to what it says are Chinese attempts to thwart legitimate maritime activities by others in the sea, notably the Philippines and Vietnam. That was a major topic of concern this month when Biden held a three-way summit with the prime minister of Japan and the president of the Philippines.

On Ukraine, which U.S. officials say will be a primary topic of conversation during Blinken’s visit, the Biden administration said that Chinese support has allowed Russia to largely reconstitute its defense industrial base, affecting not only the war in Ukraine but posing a threat to broader European security.

“If China purports on the one hand to want good relations with Europe and other countries, it can’t on the other hand be fueling what is the biggest threat to European security since the end of the Cold War,” Blinken said last week.

China says it has the right to trade with Russia and accuses the U.S. of fanning the flames by arming and funding Ukraine. “It is extremely hypocritical and irresponsible for the U.S. to introduce a large-scale aid bill for Ukraine while making groundless accusations against normal economic and trade exchanges between China and Russia,” Chinese Foreign Ministry spokesperson Wang Wenbin said Tuesday.

On the Middle East, U.S. officials, from Biden on down, have repeatedly appealed to China to use any leverage it may have with Iran to prevent Israel’s war against Hamas in Gaza from spiraling into a wider regional conflict.

While China appears to have been generally receptive to such calls — particularly because it depends heavily on oil imports from Iran and other Mideast nations — tensions have steadily increased since the beginning of the Gaza war in October and more recent direct strikes and counterstrikes between Israel and Iran.

Blinken has pushed for China to take a more active stance in pressing Iran not to escalate tensions in the Middle East. He has spoken to his Chinese counterpart, Wang Yi, several times urging China to tell Iran to restrain the proxy groups it has supported in the region, including Hamas, Lebanon’s Hezbollah, Yemen’s Houthis and Iranian-backed militias in Iraq and Syria.

The senior State Department official said Blinken would reiterate the U.S. interest in China using “whatever channels or influence it has to try to convey the need for restraint to all parties, including Iran.”

The U.S. and China are also at deep odds over human rights in China’s western Xinjiang region, Tibet and Hong Kong, as well as the fate of several American citizens that the State Department says have been “wrongfully detained” by Chinese authorities, and the supply of precursors to make the synthetic opioid fentanyl that is responsible for the deaths of thousands of Americans.

China has repeatedly rejected the American criticism of its rights record as improper interference in its internal affairs. Yet, Blinken will again raise these issues, according to the State Department official.

Another department official, who also spoke on condition of anonymity to preview Blinken’s private talks with Chinese officials, said China had made efforts to rein in the export of materials that traffickers use to make fentanyl but that more needs to be done.

The two sides agreed last year to set up a working group to look into ways to combat the surge of production of fentanyl precursors in China and their export abroad. U.S. officials say they believe they had made some limited progress on cracking down on the illicit industry but many producers had found ways to get around new restrictions.

“We need to see continued and sustained progress,” the official said, adding that “more regular law enforcement” against Chinese precursor producers “would send a strong signal of China’s commitment to address this issue.”

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Biden issues an executive order restricting U.S. investments in Chinese technology

President Joe Biden signed an executive order on August 9 to block and regulate high-tech U.S.-based investments going toward China— a move the administration said was targeted even though it reflected an intensifying competition between the world’s two biggest powers.

The order covers advanced computer chips, micro electronics, quantum information technologies and artificial intelligence. Senior administration officials said that the effort stemmed from national security goals rather than economic interests, and that the categories it covered were intentionally narrow in scope. The order seeks to blunt China’s ability to use U.S. investments in its technology companies to upgrade its military while also preserving broader levels of trade that are vital for both nations’ economies.

The United States and China appear to be increasingly locked in a geopolitical competition with a conflicting set of values. Biden administration officials have insisted that they have no interest in “decoupling” from China, yet the U.S. also has limited the export of advanced computer chips and kept the expanded tariffs set up by President Donald Trump. China has engaged in crackdowns on foreign companies.

Mr. Biden has suggested that China’s economy is struggling and its global ambitions have been tempered as the U.S. has reenergized its alliances with Japan, South Korea, Australia and the European Union. The administration consulted with allies and industry in shaping the executive order.

“Worry about China, but don’t worry about China,” Mr. Biden told donors at a June fundraising event in California.

The officials previewing the order said that China has exploited U.S. investments to support the development of weapons and modernize its military. The new limits were tailored not to disrupt China’s economy, but they would complement the export controls on advanced computer chips from last year that led to pushback by Chinese officials. The Treasury Department, which would monitor the investments, will announce a proposed rulemaking with definitions that would conform to the presidential order and go through a public comment process.

The goals of the order would be to have investors notify the U.S. government about certain types of transactions with China as well as to place prohibitions on some investments. Officials said the order is focused on areas such as private equity, venture capital and joint partnerships in which the investments could possibly give countries of concern such as China additional knowledge and military capabilities.

J. Philip Ludvigson, a lawyer and former Treasury official, said the order was an initial framework that could be expanded over time.

“The executive order issued today really represents the start of a conversation between the U.S. government and industry regarding the details of the ultimate screening regime,” Mr. Ludvigson said. “While the executive order is limited initially to semiconductors and microelectronics, quantum information technologies, and artificial intelligence, it explicitly provides for a future broadening to other sectors.”

The issue is also a bipartisan priority. In July by a vote of 91-6, the Senate added as an amendment to the National Defense Authorization Act requirements to monitor and limit investments in countries of concern, including China.

Yet the reaction to Mr. Biden’s order on August 9 showed a desire to push harder on China. Rep. Raja Krishnamoorthi, D-Ill., said the order was an “essential step forward,” but it “cannot be the final step.” Republican presidential candidate Nikki Haley, a former U.S. ambassador to the United Nations, said Mr. Biden should been more aggressive, saying, “We have to stop all U.S. investment in China’s critical technology and military companies — period.”

Mr. Biden has called Chinese President Xi Jinping a “dictator” in the aftermath of the U.S. shooting down a spy balloon from China that floated over the United States. Taiwan’s status has been a source of tension, with Mr. Biden saying that China had become coercive regarding its independence.

China has supported Russia after its 2022 invasion of Ukraine, though Mr. Biden has noted that the friendship has not extended to the shipment of weapons.

U.S. officials have long signaled the coming executive order on investing in China, but it’s unclear whether financial markets will regard it as a tapered step or a continued escalation of tensions at a fragile moment.

“The message it sends to the market may be far more decisive,” said Elaine Dezenski, a senior director at the Foundation for Defense of Democracies. “U.S. and multinational companies are already reexamining the risks of investing in China. Beijing’s so-called ‘national security’ and ‘anti-espionage’ laws that curb routine and necessary corporate due diligence and compliance were already having a chilling effect on U.S. foreign direct investment. That chilling now risks turning into a deep freeze.”

China ‘gravely’ concerned about US order on foreign investment

China’s Commerce Ministry said it is “gravely concerned” about the United States’ signing of an executive order that will prohibit some new U.S. investment in China in sensitive technology, and said it reserves the right to take measures.

It said it hopes the U.S. will respect the laws of the market economy and the principle of fair competition, and refrain from “artificially hindering global economic and trade exchanges and cooperation”.

China’s strong economic growth has stumbled coming out of pandemic lockdowns. On August 9 its National Bureau of Statistics reported a 0.3% decline in consumer prices in July from a year ago. That level of deflation points to a lack of consumer demand in China that could hamper growth.

Separately, foreign direct investment into China fell 89% from a year earlier in the second quarter of this year to $4.9 billion, according to data released by the State Administration of Foreign Exchange.

Most foreign investment is believed to be brought in by Chinese companies and disguised as foreign money to get tax breaks and other benefits, according to Chinese researchers.

However, foreign business groups say global companies also are shifting investment plans to other economies.

Foreign companies have lost confidence in China following tighter security controls and a lack of action on reform promises. Calls by Xi and other leaders for more economic self-reliance have left investors uneasy about their future in the state-dominated economy.

(With inputs from Reuters)

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China will want to make India’s U.S. ties costly, says Joseph Torigian

In the months since China’s Party Congress in October, protests around the country in November, and the sudden withdrawal of the ‘zero-COVID’ policy the following month, the ruling Communist Party of China is looking to course correct, says Joseph Torigian, Global Fellow at the Wilson Center’s History and Public Policy Program and an Assistant Professor at the School of International Service at the American University, Washington D.C., who researches the elite politics of authoritarian regimes and is currently visiting India.

General Secretary Xi Jinping has been able ‘to get away with these shifts’ in policy given his ‘dominant’ position in the party, he adds, and has maneuvered the Chinese system to avoid pushback at the elite level. Xi’s third term is unlikely to see a fundamental change in worsening China-U.S. relations. While China will be concerned about pushing India too far in the direction of the U.S., it will also want to make India’s relationship with the U.S. costly. Edited excerpts.

How do you assess Xi’s current position as he starts his third term, and following the recent ups-and-downs we’ve seen in China from his clean sweep at the Party Congress, to the protests in November and the sudden rollback of zero-COVID?


Around the time of the 20th Party Congress, many outside observers were very sceptical about China’s future. They looked at the ideological and security focused language that surrounded the congress and the promotion of individuals with very close ties to Xi Jinping. Outside the halls of the congress, China’s economy was suffering from zero-COVID and the real estate crackdown. Beijing was facing poor relations with many key powers. 

But in the months since, we’ve seen some pretty significant course correction. The economy is doing better. Xi has launched a global initiative to improve China’s reputation. What these changes tell us is that it’s dangerous to predict the future of China based on current trends. It also tells us that Xi is still a politician capable of manoeuvre and tactical flexibility. That doesn’t mean the reasons for why the CCP has struggled to manage China’s economy and foreign policy will go away. It just means that Beijing pursues multiple, somewhat conflicting goals at the same time, and will integrate strategy and tactics in ways that are somewhat hard to predict.

Last year, things looked pretty bleak for Beijing. The November protests and the toll of zero-COVID seemed like the most challenging time for Xi since he came to power. How was he able to come out politically unscathed?


That’s a great question. I think the answer is that Chinese politics is not a popularity contest. As a Leninist party, it’s an organisational weapon, and one of its key principles is to firewall the top leaders’ authority from the exigencies of political exchange. Xi has an impressive Machiavellian toolbox, which includes a special relationship with the military, access to compromising material, the right to decide when meetings are held and on what topics, and an ideological apparatus that equates him with the Party. So that means even when Party leaders might be unhappy with Xi’s actions, they share an understanding that the system risks collapse without a core leader that can make final decisions. So, counterintuitively, that sentiment of circling the wagons, rallying to the leader, whatever you want to call it, has been especially strong at moments of crisis, like the Great Leap Forward, or the months after the Tiananmen Square crackdown in 1989. 

Having said that, we also have little insight into how popular Xi actually is among people that could potentially matter. What we see as policy dysfunction might fit a different logic among the halls of Zhongnanhai. As for Xi’s clean sweep as you put it, he was already quite a dominant leader before the 20th Party Congress. But the issue is that people would still sometimes wonder whether there was any daylight between him and[former] Premier Li Keqiang. So by selecting individuals with whom he has very close career ties, that lowers the likelihood that people on the outside will wonder if there are two so-called headquarters in the party centre.

The conventional wisdom says Xi has taken a risk by conflating the party with himself, as opposed to the past collective leadership model, as he bears not just the rewards but all the risks. On the other hand, has he in a way protected himself by doing so?


We keep seeing these assertions that because Xi Jinping is the top leader, that means that policies are associated with him, and therefore he can’t move away from them. But at the same time, precisely because he is such a dominant leader, he can get away with these shifts. Zero-COVID was associated with him, but when it was decided that they were going to move away from zero-COVID, they did, and it didn’t really have any impact on Xi’s authority.

This is something that we’ve seen countless times in Chinese history. For decades, China talked about the United States as the prime enemy. Then overnight, it was decided that Nixon was going to go to China, and it didn’t really have any impact on elite politics in terms of Mao’s authority. So, to have someone who is clearly the dominant leader allows them to pick and select policies that some people might dislike, but then also to shift away from them without there really being any serious repercussions. That’s one of the things that the Chinese see in their system as a relative advantage.

What do the last three years, from the outbreak of COVID in Wuhan and the initial missteps, to zero-COVID’s early success and then its messy, exit, tell us about the system? Do they reflect resilience or weakness?


When it comes to something like zero-COVID, there were reasons for the Chinese to take pride in their system, but there were also pretty obvious pathologies at the same time. The cover up at the beginning very clearly had something to do with how the Party works. But then the ability for the Chinese State to achieve something like zero-COVID was really a sign of enormous state capacity. If COVID hadn’t transformed, then the narrative that they used to justify zero-COVID might have proven more powerful over the long term. 

Ultimately, they lost because the virus proved to be too wily, and it took them a long time to lose. Part of the reason for that was they were probably in a position that they felt stuck – that if they did move away from zero-COVID, despite all of the problems with it, that the healthcare system would collapse and that there weren’t enough people vaccinated. At the end, it reached a point where they had to select the better of two very bad options. And despite a very rough few months, they’ve come out on the other side now, and the economy is proving better than people had suspected. So there were certainly some very significant problems with how COVID was handled, but I think Xi Jinping can make a case, at least within the party, that his ability to hold things together, despite that kind of a challenge, was something that he deserves credit for. At least that’s the narrative that they’re pursuing, despite the obvious problems with it, especially among people who suffered terribly among the lockdowns.

What explains why we haven’t been able to discern any kind of elite pushback to Xi despite all of these recent problems?


If you review what people were saying about Chinese politics in the past and compare it to what actually happened based on new evidence that’s come to light since, it’s hard to overestimate just how badly outside observers performed. I want to emphasise..it’s because Leninist regimes are inherently opaque systems. One of the reasons that Westerners get it wrong so often is that people within the system were getting it wrong too. Even at the very top echelons, there’s often only a very vague understanding about what’s really going on. 

Zhao Ziyang, the pro-reform General Secretary in the 1980s, once said that, in the Chinese system, people say one thing to your face but and something completely different behind your back – even remarking that this problem was at the very heart of their politics. So what is going on right now in China is hard to say, but at the same time when we look to history, where we have a better grasp, we see certain continuities in the system that make it very, very hard for someone to oppose the top leader even if they dislike the policies that are being enacted. That’s because your immediate concern isn’t whether policies are good or bad, but protecting yourself. The goal is to intuit what the top leader wants and bring it to them better than anyone else, or at most carefully push your policy goals within the confines of the established Party line, not punish the top leader because you want to replace them.  That’s because factional behavior is dangerous not just for you but the entire system. So it’s at moments of regime vulnerability that you want to be the most careful politically because that’s when the top leader is the most worried but also because if there was a power struggle it could bring down the whole house of cards together.

Moreover, with regards to Xi Jinping, we also don’t know whether the criticisms of him that we were able to see were representative of views at the very top of the political echelon. There’s probably a selection effect that the people who are most likely to talk to outsiders are the ones that are most sceptical about Xi Jinping. And Xi has run a tight ship with regard to information control, precisely because he believes that factions and open political warfare within the party are dangerous. 

Is Xi now unchallenged in a way that even Mao and Deng, who faced rivals, weren’t?


We often see in the media that Xi Jinping is the most powerful leader since Mao Zedong. Some even claim that Xi is more powerful than Mao because, allegedly, Mao faced other members of the first revolutionary generation who had their own status and prestige. But I personally think this view is based on an outdated understanding of Chinese history.

We used to think that the Mao era was marked by competing ideological lines and that the chairman was beset by opponents to his revolutionary model. But the historical evidence we now have unambiguously shows that Mao’s power was truly awesome, and for that generation of revolutionaries rejecting Mao would have meant rejecting themselves. Certainly sometimes Mao’s deputies misinterpreted his vague goals, or they emphasised certain things that Mao wanted but not others. But if Mao’s power was not absolute, how in the world could he have launched the Cultural Revolution? When the Cultural Revolution started, even then people were criticising themselves because they thought they were not adequately understanding what Mao wanted even as they faced the carnage around them. It was that kind of power.

As for the immediate post-Mao era, we used to think that Deng Xiaoping ushered in an era of collective leadership and party institutionalisation to prevent the appearance of a new strongman. But that assessment too is increasingly challenged by historians. Deng was the kind of person who would refuse to hold Politburo Standing Committee meetings to prevent other leading figures like Chen Yun from even having a chance to speak. But Chen was someone who even though had policy differences always prioritised Deng’s authority, not pushing for his own agenda. During his tenure Deng made multiple unexpected, often deeply, unpopular choices without consulting his comrades. And Deng crushed incipient calls within the party for stronger institutions, because he saw the CCP’s relative advantage in the decisiveness of a leader-friendly system.

Xi Jinping shares many of the features that made Mao and Deng so powerful, but he differs from them in two key ways. The first is that Xi Jinping is both involved in the day to day decision making and he’s the centre of authority, while Mao and Deng, although the supreme authority, often stepped back from the day to day minutiae of running the country. The kind of concentration of power we’ve seen under Xi Jinping probably creates some pathologies, but you could make the case that it’s intended to avoid the very serious problems that the “two line system” under Mao and Deng presented, especially with regard to succession politics. 

Second, in terms of differences, Xi lacks the awesome power that Mao and Deng enjoyed as members of the revolutionary generation. So that means that although Xi’s power is extraordinary, he is still more vulnerable than Mao or Deng ever were.  In terms of policy debates within the Xi Jinping leadership model, we don’t
really know how they work, to be honest. Absolute power can manifest in different ways. When Mao in the 1950s was the leader, precisely because he was so dominant, people felt comfortable coming to him with different opinions because they wouldn’t be construed as challengers to his. Of course, Mao became increasingly hubristic and it reached the point where people would refuse to talk at meetings because they were so frightened of him. 

For now, we do see some capacity for course correction within the system today. We don’t know why that is the case or whether that will change like it did in the past. Presumably, people who are very close to Xi might feel comfortable cautiously raising different opinions. A lot of this has to do with personal political skill. But also, even if Xi sees the world through blinders, the world is still on the other side of those blinders. I don’t want to essentialise the pathological implications for the concentration of power, even though I’m sure theydo create some problems for him.

Will we see an evolution of the way Xi governs, now that he has his own people in place?


We can look at what pressures he will face, but we can’t predict how they will play out because there is too much contingency. Why do I say that? I say that because to answer your question we have to have a sense of the personal dynamics among Xi and his deputies, which is the hardest thing for people on the outside to see. Xi himself is likely unsure – how much space he gives to someone like [Premier] Li Qiang, and for how long, will depend on how effective Li Qiang is at managing his leader. 

We’ve seen throughout Chinese history that one of the core problems of the CCP is exactly that – how extraordinarily difficult it is for a deputy to successfully navigate their relationship with their patron. We’ve seen over and over again how an absolutely loyal deputy still loses the confidence of the top leader – both in the Mao and Deng eras. Often, that was because of unforeseen events, like student protests. So we should be cautious about predicting the future of elite politics. 

Your question of course also gets into succession politics. Presumably, Xi Jinping will want to pick whomever comes next. But everything that Xi Jinping has done so far suggests that he only thinks the system works with a “core” leader. But how do you test a protégé and help them build up their authority without risking the “two headquarters” problem? 

On the foreign policy front, we’ve seen a flurry of diplomatic activity from Beijing at the start of the third term, from the new Global Civilisation Initiative (GCI)  to the unexpected Saudi-Iran deal. What’s driving this?


After the 20th Party Congress, the party leadership had more bandwidth to focus on the outside world. They clearly saw a need to address China’s worsening reputation, which had suffered for a whole host of reasons. Broadly speaking, many of the initiatives are intended to improve Beijing’s relations with the Global South, Europe and Russia as competition with the United States heats up.  We’ve seen some success. A lot of what Beijing says is popular outside of the West, and as the recent Emmanuel Macron trip showed, even in Europe, there is some desire to constrain the competitive elements of the relationship.

You also follow Russia very closely. How do you see the Xi-Putin relationship, as well as their similarities and differences?


They have a lot in common. They both come from families with a history of devotion and sacrifice for the regime. Similar experiences taught them the value of a strong polity. In 1989, when Putin was a KGB operative in Dresden, he saw the East German state collapse around him. When he tried to contact his superiors, he was told that Moscow was silent. 

In his early years, Xi Jinping drew similar conclusions about the need for a strong state that works essentially like a cage. In 1989, during the protests in Tiananmen Square, his immediate frame of reference was the Cultural Revolution. As the students were protesting, he talked about how there is no such thing as pure democracy, that when people are allowed to do whatever they want they just bully each other and pursue their own interests like during the late Mao era. 

So, Putin and Xi are statists, and they think that you need to have a Leviathan to control people. They both see attacks on their history as Western plots to delegitimise them. They both see Western democracy promotion as an attempt to achieve regime change. They both see traditional values as a bulwark against instability and they see the West as tearing itself apart with cultural debates. They both believe authoritarian regimes are better at managing modern challenges. They both want their countries to regain a lost status. They both don’t see Western democracy as real – just a way for special interests to dominate. They don’t support a single form of authoritarianism and they don’t really formally export their own model. Even their legitimation narratives are similar. Vladimir Putin talks about how, during the1990s, the regime was at risk of collapse, and he arrested those centrifugal forces, while Xi Jinping talks about how “reform and opening” created problems that could only be resolved with a strong leader and more discipline. 

Having said that, Putin and Xi are not the same person. Putin is much more willing to take risks than Xi. Xi is, generally speaking, more cautious. Putin has often criticised the Bolsheviks, even blaming them for the creation of Ukraine, and the Russian Federation prefers to ignore the October Revolution. Xi Jinping, even though not a dogmatic person, I think is still a true believer, and the source of meaning in his life is the Chinese Revolution, which was of course inspired by the Russian one. Putinism is very far from Communism, to put it mildly. Finally, I think Xi still sees some benefit to maintaining some constructive ties with the West, even as he seeks to control those ties to China’s benefit. 

On U.S.-China relations, is there a sense that Beijing is resigned to, and preparing for, the relationship continuing on a confrontational path?


I think Xi Jinping is someone who has always believed that the United States would never tolerate the rise of a Communist country in the international system. But even within that context, the PRC clearly finds American behaviour as increasingly aggressive. That sentiment was further exacerbated by Washington’s reaction to the balloon incident and how the U.S. has characterised China’s relationship with Russia. But most seriously, China and the U.S. both believe that the other is trying to change the status quo in the Taiwan Strait, which is the biggest challenge. Both sides will occasionally try to prevent the relationship from deteriorating too much, so there will be ups and downs, but for structural reasons, and unexpected events like the balloon, it’s hard to imagine a fundamental change anytime soon. 

Some see Taiwan as a priority for China and central to Xi’s agenda of national rejuvenation. Is there evidence to suggest a new approach on Taiwan under Xi or has his approach been in keeping with his predecessors?


It’s unambiguous that the Taiwan issue is a deeply personal and emotional one for Xi Jinping. This is someone who talks about a legacy bequeathed to him by his ancestors not to allow any Chinese land to escape from Beijing. And the Russian invasion of Ukraine shows that authoritarian regimes will use force when they think they can get away with it. Nobody really knows what the PRC will do. 

Having said that, Xi Jinping is someone who spent a lot of time in Fujian and Zhejiang, and among the Chinese leadership probably has a relatively good understanding of the Taiwan issue. Xi Jinping is also someone who has the power to tell people within the system who may disagree with him that if trends are in China’s favour, they can continue to wait. As long as Beijing feels that it is less costly to move later, they will likely do that. Also, Xi Jinping is someone who does not want to be the leader who buries the Chinese Communist Party, and a war in Taiwan that goes in the wrong direction could be extremely dangerous. He’s not someone who wants to risk something like that. I think the danger isn’t that an invasion is imminent, unless the calculations I just described change, but that China could feel a need to create risk for the United States to warn off Washington, and then an accident happens. And when the political atmosphere is charged in the way that it is right now, something like that could be very dangerous.

Given the abiding focus on the U.S., is China now looking at other relationships, including with India, largely from the point of view of relations with the U.S.? Is that going to inform how China engages with India?


Looking at the Cold War, China has historically seen the subcontinent through the lens of geopolitics with regards to the United States, but also Russia. What’s changing now is that the competition between the United States and China is intensifying at precisely the moment that leaders in New Delhi are drawing conclusions about Beijing following the Galwan incident. The future remains to be seen, as China will be concerned about pushing India too far in the direction of the United States, but also will want to make India’s relationship with the U.S. costly.

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