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ICAS Bulletin (online ISSN 2836-3418, print ISSN 2836-340X) is published every other week throughout the year at 1919 M St NW, Suite 310, Washington, DC 20036.
The online version of ICAS Bulletin can be found at chinaus-icas.org/bulletins/.
– Direct flights between the U.S. and China are expected to increase to 24 per week in October, which is still less than the 300 per week pre-pandemic.
– Following talks between U.S. Treasury chief Janet Yellen and Chinese vice-premier He Lifeng, China and the U.S. established channels “to enhance communication and share views on issues related to the economic and financial fields,”according to Chinese state broadcaster CCTV.
– U.S. Trade Representative Katherine Tai said the WTO should be focused on “openness, transparency, and fair-market-oriented competition,” with a special focus on those who use non-market practices such as China.
– On September 21, China’s top climate envoy Xie Zhenhua claimed controls on renewable energy product exports were “politicizing” and “imperiling” decarbonization goals.
– The American Chamber of Commerce in Shanghai and the European Union Chamber of Commerce in China jointly reported that tensions with China were harming American and European companies operating in the country.
– A pullback from venture capitalist investment in China’s biotechnology sector reflects a broader trend in global investment, as well as China’s faltering economy in tandem with rising geopolitical tensions.
– Mexico overtakes China as the biggest supplier of products to the U.S. due to trade tensions between the U.S. and China.
Associated News References:
“More direct China-US flights on the horizon, but return to 2019 traffic far more distant,” South China Morning Post, September 25 [Paywall]
“China and US set up finance, economic discussion channels after talks to ease trade tensions,” South China Morning Post, September 22 [Paywall]
“WTO needs progress on ‘non-market’ practices, dispute settlement -USTR’s Tai,” Reuters, September 22
“China’s top climate envoy decries trade controls on renewables as US and EU diplomats push Beijing on emissions goals,” South China Morning Post, September 21 [Paywall]
“Foreign firms in China say vague rules and tensions with Washington hurting business, surveys show,” AP, September 19
“U.S. and Other Foreign Venture Firms Pull Back From China’s Biotech Sector,” The Wall Street Journal, September 14 [Paywall]
“Mexico’s Moment: The Biggest US Trading Partner Is No Longer China,” Bloomberg, September 12 [Paywall]
– Chinese Foreign Minister Wang Yi said that “China is willing to comply with the expectations of the international community and play a constructive role in the success of APEC (Asia-Pacific Economic Cooperation) this year.” This statement comes after Chinese President Xi Jinping was absent from this year’s G20 Summit.
– President Biden hosted several Pacific Island nations at the White House on September 25 in what some are calling a bid to establish regional influence.
– In response to news that the Chinese Defense Minister Li Shangfu has not been seen in public since August 29, U.S. Ambassador in Tokyo Rahm Emanuel on September 7 posted on X, formerly known as Twitter, that “President Xi’s cabinet lineup is now resembling Agatha Christie’s novel And Then There Were None,” and questioned “who’s going to win this unemployment race? China’s youth or Xi’s cabinet?” A week later, after he had been asked by White House officials to cease posting such messages, Emanuel again made a public post on X, asking if Li was missing meetings “because he was placed on house arrest???”
– President Xi Jinping replied to a letter from two U.S. Flying Tigers veterans who fought for China during World War II, saying that Japan was a shared enemy of the U.S. and China, as well as forging a “profound” friendship, according to Chinese state media.
– White House national security adviser Jake Sullivan met with Minister Wang Yi in Malta from September 16-17. Wang then met with several Russian officials in Moscow, including Russian Foreign Minister Sergey Lavrov, on September 18.
– U.S. Senate Majority Leader Chuck Schumer will lead a bipartisan delegation of senators to China this fall, following multiple meetings in Beijing earlier this year.
Associated News References:
“After Xi’s G20 absence, China says willing to play role in APEC’s success,” Reuters, September 26
“Biden Hosts Pacific Islands, With a Rising China in Mind,” The New York Times, September 25 [Paywall]
“White House told U.S. ambassador to Japan to stop taunting China on social media,” NBC News, September 22
“Xi says China, US ‘should and must’ achieve peaceful co-existence,” Reuters, September 19
“China’s foreign minister holds talks in Russia after meeting with US national security adviser,” AP, September 18
“America’s Warrior Diplomat, Rahm Emanuel, Takes On China’s Xi Personally,” The Wall Street Journal, September 18 [Paywall]
“Schumer to Lead Senate Delegation to China Amid Tensions,” The New York Times, September 13 [Paywall]
– The U.S. Commerce Department added 28 companies from China, Russia, and other nations to their export blacklist. U.S. companies cannot sell to those on the list unless they obtain a license.
– On September 20, Chinese foreign ministry spokesperson Mao Ning said that China opposes discriminatory practices by the United States against Chinese companies in response to the U.S. commerce department’s claims that an advanced phone chip made by Huawei may violate trade restrictions.
– Spokesperson Ning also announced on September 15 that China would impose sanctions against U.S. aerospace and defense firms Northrop Grumman and Lockheed Martin for providing weapons to Taiwan.
– Bytedance, Tiktok’s Chinese parent company, is resuming negotiations with the U.S., though there are doubts that the government has the authority to ban the company.
– On September 14, the Senate Finance Committee passed a bill that would end the double taxation between the U.S. and Taiwan. Reportedly, the goal of this bill is to accelerate investment in the U.S. semiconductor industry.
– The House China Select Committee issued a subpoena to a Chinese-owned lab called Prestige Biotech and Universal Meditech Inc. The lab purportedly produced pregnancy and coronavirus tests to sell online.
Associated News References:
“U.S. Blacklists 28 Entities From China, Russia and Other Countries, Citing National Security Risks,” The Wall Street Journal, September 25 [Paywall]
“China says opposes discriminatory U.S. practices against firms,” Reuters, September 20
“China sanctions Northrop Grumman, Lockheed Martin for arms sales to Taiwan,” Reuters, September 15
“TikTok and U.S. rekindle negotiations, boosting app’s hopes for survival,” The Washington Post, September 15 [Paywall]
“Senate Committee Backs Bill to Deepen U.S. Economic Ties With Taiwan,” The New York Times, September 14 [Paywall]
“The House China Select Committee issued its first ever subpoena as it investigates a Chinese-owned lab in California,” Politico, September 13 [Paywall]
– U.S. Commander General Chance Saltzman told Reuters on September 25 that the United States Space Force has had internal discussions about setting up a hotline with China to prevent crises in space, but also that the U.S. has not yet discussed establishing one with China.
– House Republicans stall the Biden administration’s plan for an economic assistance pact with the Marshall Islands in the Pacific.
– The US Navy shipped two prototype drone ships to Japan for deployment in the western Pacific, in order to test for surveillance and attack capabilities against China’s larger navy.
– House Republicans are asking that the Biden administration provide personal details regarding the Chinese nationals who conducted what U.S. officials claim is espionage of sensitive U.S. facilities.
– Days after the US Navy held joint military exercises with South Korea and Canada near the northeast China coast, the Chinese navy carried out military drills in the Yellow Sea and Bohai Strait, starting on September 17.
– U.S. officials report that they have not detected Chinese launches of balloons since one was shot down in February. However, they do believe that China is likely to restart the program.
Associated News References:
“US exploring potential space force hotline with China,” Reuters, September 25
“Strategy to Counter China in Pacific at Risk in Congress Budget Fight,” The Wall Street Journal, September 24 [Paywall]
“U.S. Sends Drone Ships to Western Pacific in First Deployment Near China,” The Wall Street Journal, September 21 [Paywall]
“Lawmakers Request Details of Chinese Nationals at Sensitive U.S. Facilities,” The Wall Street Journal, September 19 [Paywall]
“PLA holds drills in Yellow Sea days after US and allies flex muscles near northeast China coast,” South China Morning Post, September 18 [Paywall]
“China Has Paused Its Spy Balloon Operations, U.S. Officials Say,” The New York Times, September 15 [Paywall]
– On September 22, the U.S. Commerce Department issued final rules to prevent China and other countries seen as national security concerns from accessing $52 billion in semiconductor manufacturing subsidies.
– According to anonymous sources, a China chip maker Yangtze Memory Technologies Corp (YMTC) is increasingly reliant on domestic suppliers.
– A major Chinese defense company has allegedly created a radar chip with technology that has been blocked by the government. It purportedly operates more powerfully than similar chips used in the U.S.
– Smartphone companies Apple and Huawei continue their rivalry for China’s market share as Apple unveils new iPhone 15. Chinese consumers are reportedly divided on support for the new phone.
– China denies banning use of iPhones in government and related organizations, after White House national security spokesman John Kirby said China “to be more transparent about…what they’re doing.”
Associated News References:
“US finalizes rules to prevent China from benefiting from $52 billion in chips funding,” Reuters, September 22
“Tech war: China’s top memory chip maker YMTC forges closer ties with domestic supplier to replace US parts, sources say,” South China Morning Post, September 20 [Paywall]
“Amid US tech sanctions, Chinese scientists say they made the world’s most powerful radar chip,” South China Morning Post, September 13 [Paywall]
“Apple and Huawei’s smartphone rivalry divides China,” Reuters, September 13
“China Denies Banning iPhones, but Cites Unspecified Security Concerns,” The New York Times, September 13 [Paywall]
“As Its U.S. Shop Opens, TikTok’s Chinese Merchants Struggle to Sell Their Mops and Soap Dispensers,” The Wall Street Journal, September 26 [Paywall]
“D.C. Is in Panda-monium as China Takes Back Beloved Bears,” The Wall Street Journal, September 23 [Paywall]
“When a Congressman Challenged Disney on China, It Laid Off Beijing Staff,” The Wall Street Journal, September 22 [Paywall]
“Leading Chinese university becomes first to remove English requirements for students,” South China Morning Post, September 22 [Paywall]
“Shein shifts shipping strategy to bring China-made goods closer to US shoppers,” Reuters, September 22
“China’s Ultra-Rich Gen Zs Flock Home as Global Tensions Rise,” Bloomberg, September 21 [Paywall]
“China beats US in top global scientific ‘hot papers’ ranking: report,” South China Morning Post, September 21 [Paywall]
“Senate urged to probe China’s alleged harvesting of corals in Rozul Reef,” Cebu Daily News, September 18
“Starbucks promotes Molly Liu to co-CEO of Starbucks China,” Reuters, September 18
“UN Nuclear Watchdog Risks Running Out of Money on US, China Standoff,” Bloomberg, September 14 [Paywall]
“Taiwan blasts Elon Musk over latest China comments,” Reuters, September 14
“Asean will engage with both China and US, secretary general Kao Kim Hourn says in call to dial down ‘major power’ tensions,” South China Morning Post, September 14 [Paywall]
Stopping “Gray Rhinos”, Handling “Black Swans” and Removing “Tigers Blocking the Way”: Assessing Challenges and Exploring Prospects for U.S.-China Relations in 2024
We are excited to hold this year’s ICAS Annual Conference in-person at the Georgetown Marriott Hotel in Washington, D.C. on October 17, 2023, which will feature the following:
By Sourabh Gupta
September 18, 2023
Four years after they last met in-person in Brasilia due to the COVID-19 pandemic, the leaders of Brazil, Russia, India, China and South Africa convened in Johannesburg from August 22nd to 24th for a fifteenth and landmark BRICS Leaders Summit. The summit will long be remembered as the ‘expansion summit’, joining the 2009, 2011, 2014 and 2017 summits as the notable ones in the BRICS pantheon…
By Sourabh Gupta
September 18, 2023
The placement of the proposed “guardrails” that Joe Biden and Xi Jinping sought to erect last fall in Bali finally commenced in earnest with the visits to Beijing by three Cabinet secretaries and one National Security Council principals-level appointee. Important steps were taken to put the balloon incident behind them, with lines of communication re-opened, assurances exchanged, and incremental forward progress recorded even in areas such as export controls, where US and China had previously clashed. Defense exchanges remain an area where progress lags. Whether the “guardrails” can survive their first contact with US election year polemics remains to be seen. As ties stabilized, both sides also engaged in sanctions and countermeasures as well as domestic rulemaking to secure their national economic and security interests. All along, the administration continued building “situations of strength” with its allies and partners to shape the strategic environment around China, which Beijing viewed as an act of encirclement…
*This Brief is part of the newly-established ICAS U.S.-China L.E.A.D. Project and includes a detailed ‘Chronology of U.S.-China Relations (January-April 2023)’ which will be updated once every four months as part of the L.E.A.D. Project.*
Note: This article is extracted from Comparative Connections: A Triannual E-Journal of Bilateral Relations in the Indo-Pacific, Vol. 25, No. 2, September 2023. Preferred citation: Sourabh Gupta, “US-China Relations: US-China Effort To Set ‘Guardrails’ Back On Track For Now,” Comparative Connections, Vol. 25, No. 2, pp 33-46.
By Jacqueline Cheng
September 20, 2023
On September 18, The China Project held a virtual webinar to discuss China’s current restrictions on open-source data and how Western researchers can respond to such impediments on open-source intelligence. Titled “Open-Source Intelligence in Crisis: Navigating China’s Restrictions,” the event was held to discuss Beijing’s tightening of foreign access to Chinese databases, as a result of American researchers’ use of these databases to report on sensitive issues such as Chinese military and civilian matters…
Thursday, September 14, 2023
On Thursday, September 14, 2023, ICAS Executive Director and Senior Fellow Dr. Nong Hong spoke on a Stimson Center online event panel discussing cooperation between China and West Africa over sustainable fisheries.
On Wednesday, September 20, 2023, Senior Fellow Sourabh Gupta discussed UN Secretary General Guterres’ address at the UNGA on CGTN America’s World Today.
On Tuesday, September 19, 2023, Senior Fellow Sourabh Gupta discussed the changing role of the United Nations amidst global challenges on CGTN America’s World Today.
On Saturday, September 16, 2023, Senior Fellow Sourabh Gupta discussed the India-Middle East-Europe Economic Corridor on Alhurra USA’s Decision Capital.
On Friday, September 15, 2023, Senior Fellow Sourabh Gupta discussed the G77+ China Summit in Havana, Cuba, on CGTN America’s The Heat.
On Friday, September 15, 2023, Senior Fellow Sourabh Gupta was quoted in China Daily on China’s current economic issues.
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