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July 20, 2022

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/.

- What's Going On? -

Renewed Debates in Commerce and Investment Relations

White House National Security Advisor Jake Sullivan talks to reporters during the daily news conference in the Brady Press Briefing Room at the White House on July 11, 2022 in Washington, DC. (Source: Chip Somodevilla/Getty Images)

– National Security Advisor Jake Sullivan said in a briefing that the Biden administration supports the ongoing efforts by Congress to “provide greater transparency on U.S. investment into China” in critical sectors.
– On July 13, Securities and Exchange Commission Chairman Gary Gensler expressed doubt that negotiations between Washington and Beijing over audits will succeed.
– Despite Congress being out of session, U.S. senators have continued to speak out as Republicans are starting to back Minority Leader Mitch McConnell’s statements that could threaten the U.S.-China competition bill known as USICA.
– On July 6, the heads of the American and British law enforcement agencies FBI and MI5, respectively, released an “unprecedented” joint statement warning about “espionage and other economic threats from China.”
– Responding to the joint statement, Chinese MFA spokesperson Zhao Lijian said the remarks “lack factual basis” and reflect “Cold War zero-sum mentality and ideological prejudice.”
– The U.S. Commerce Department’s Bureau of Industry and Security has begun applying the economic tools and techniques originally used to counter Russia over Ukraine to try and limit China’s military and technological growth.

Multilateral Relations in Motion

(Source: Getty Images, Royalty-Free)

– While finishing an 11-day visit to the Indo-Pacific region, Treasury Secretary Janet Yellen said she will call for deeper trade alliances to combat inflation and counter China’s “unfair trade practices.”
– Jay Shambaugh, the nominee for Treasury Undersecretary for International Affairs, said at his confirmation hearing that he wants to work with global parties to give nations borrowing alternatives to China.
– Derek Chollet, a career foreign policy specialist and current Counselor of the U.S. State Department, said that the participation of several Asian states in the recent NATO summit marks a “consequential shift” in the transatlantic security partnership’s mandate towards confronting China’s rise.
– Chinese foreign minister Wang Yi told the various member states of ASEAN to avoid being used as “chess pieces” by global powers in the region during an address to ASEAN’s Secretariat.
– On July 6, Chinese MFA spokesperson Zhao Lijian described “the so-called rules-based international order” as “actually a family rule made by a handful of countries to serve the U.S. self-interest.”

A Marked Increase in Bilateral Discussions

President Biden meets with President Xi in a video conference on November 15, 2021. (Source: Chinese Ministry of Foreign Affairs)

– On July 15, China’s Minister of Ecology and Environment Huang Runqiu held bilateral meetings in Washington with Commerce Secretary Gina Raimondo, EPA Deputy Administrator Janet McCabe, and Governor Gavin Newsom, marking the first time a Chinese official at or above the ministerial level has made a public visit to Washington during the Biden administration.
– Officials in Beijing and Washington are planning a virtual meeting between President Joe Biden and President Xi Jinping “as soon as the last week of July.”
– On July 8, on the sidelines of the G-20 summit in Bali, Secretary of State Antony Blinken and his Chinese counterpart Wang Yi held a five-hour meeting in which Blinken pressed Wang Yi to oppose Russia’s invasion of Ukraine, among discussions of other key issues.
– After virtual talks were held between Chinese Vice Premier Liu He and U.S. Treasury Secretary Janet Yellen, China’s commerce ministry announced that the trade and economic teams of the U.S. and China have agreed to “maintain close communication.”

International Law and Strategy in the Indo-Pacific

The USS Benfold sailing as part of a carrier strike group in the Philippine Sea on June 4, 2022 (Source: US Navy)

– On July 13, the destroyer USS Benfold performed a freedom of navigation operation (FONOP) near the Chinese-controlled Paracel Islands in the South China Sea, intended to challenge Beijing’s claim that the waters within the archipelago are China’s “territorial sea.”
– On July 12, the sixth anniversary of an international tribunal’s ruling against China’s maritime claims in the South China Sea, Secretary of State Antony Blinken reaffirmed that the U.S. would come to the defense of the Philippines if its forces in the South China Sea came under attack. Blinken also called on China to “abide by its obligations under international law and cease its provocative behavior” in the critical waterway.
– On July 12, Vice President Kamala Harris announced in a virtual address to the Pacific Islands Forum that the U.S. will expand its diplomatic presence throughout the Pacific by building new embassies and increasing aid.
– The US Naval Institute published a report calling on the U.S. to adopt a counter-insurgency naval strategy in Southeast Asia against China.

Tensions Over U.S.-Taiwan Interactions

An image of Taiwan on a world map. (Source: Getty Images, Royalty-Free)

– After U.S. Speaker of the House Nancy Pelosi announced she would lead a delegation to Taipei in August, Beijing spokesman Zhao Lijian said this visit would have a “grave impact” on U.S.-China ties.
– On July 18, the Chinese Ministry of Defense “demanded” that the U.S. immediately cancel its latest arms sale to Taiwan, which is worth an estimated $108 million.
– The U.S. House of Representatives passed legislation inviting Taiwan to be part of the 2024 Rim of the Pacific (RIMPAC) exercise.
– Urging the U.S. to respect China’s sovereignty and stick with the one-China principle, China’s Foreign Minister Wang Yi warned of “ferocious storms” if the principle is not upheld.
– Wang Yi previously told U.S. Secretary of State Antony Blinken that the United States should refrain from sending wrong signals to “Taiwan independence forces.”
– During a meeting with his U.S. equivalent, China’s Chief of Staff Li Zuocheng demanded the U.S. to “cease U.S.-Taiwan military collusion and avoid impacting China-U.S. ties and stability in the Taiwan Strait.”
– F.B.I. director Christopher Wray said that China is seeking to “cushion themselves from harm” resulting from international sanctions, warning Western companies could be caught between sanctions and Chinese laws.

- What Are We Reading? -

- What's Happening Around Town? -

Past Events

July 19 hosted by the Center for Strategic and International Studies

July 18 hosted by the Carnegie Endowment for International Peace

June 16 hosted by the Carnegie Endowment for International Peace

July 14 hosted by the Center for Strategic and International Studies

July 6 hosted by the Center of Strategic and International Studies

Upcoming Events

July 20 hosted by the U.S.-China Business Council

July 21 hosted by the Atlantic Council

July 21 hosted by SupChina

July 26 hosted by Center for Strategic and International Studies

August 3 hearing by U.S.-China Economic and Security Review Commission

August 4 hosted by SupChina

- What ICAS Is Up To -

ICAS Special Announcement

ICAS Academic Engagement

James Borton and ICAS Executive Director Nong Hong discussing his new book on July 14, 2022.

Virtual Book Talk on Dispatches From the South China Sea: Navigating to Common Ground
Hosted by University of Alberta, China Institute
Thursday, July 14, 2022

On Thursday, July 14, 2022, ICAS Executive Director Nong Hong moderated a virtual book talk and Q&A session with James Borton, the author of Dispatches from the South China Sea: Navigating to Common Ground. The hour-long discussion included a presentation from the author followed by questions from Dr. Nong Hong and the audience on Borton’s research methodology and his expert perceptions on key issues like managing multilateral relations, IUU fishing, and environmental degradation in the South China Sea.

ICAS Academic Engagement

GWU Summer Program Students Visit ICAS to Hear About US-China Relations
Friday, July 8, 2022

On Friday, July 8, 2022, two groups of high school students from a George Washington University summer program visited the ICAS office to learn about the Washington, DC think tank community and the complexities of U.S.-China relations. The two back-to-back visits largely focused on understanding the Belt and Road Initiative and the impact of other current events on the progression of U.S.-China relations in diplomacy, trade, technology, society and security.

This student visit is part of the Institute’s vision to nurture future thought-leaders by engaging policy questions with sincerity and frankness and providing a window into the worldviews of both the United States and China, and thereby serve as a vehicle to promote greater understanding between these two countries and societies.

ICAS Expert Voices Initiative

Interview with James Borton on science diplomacy as a solution to the South China Sea maritime disputes
Friday, July 1, 2022

James Borton joins ICAS in this installment of Expert Voices Initiative to discuss how multilateral science diplomacy can help resolve disputes and improve regional security in the South China Sea. On the agenda for discussion are:

  • Outcomes of the June 2022 IISS Shangri-La Security Dialogue
  • Impact of the Philippine Presidential Election Results on Southeast Asia
  • Comparison of Vietnam’s Maritime Policies with that of China’s and SE Asia’s
  • The History of Vietnam as a ‘Traditional’ Custodian of the South China Sea
  • The Role of China’s ‘Maritime Militia’ -‘Science Diplomacy’ as a Solution to South China Sea Disputes
  • The Clash Between Geopolitics and Scientific Cooperation
  • How to Incentivize Policymakers to Act on Marine Conservation -Lessons for Policymakers on Promoting Successful Scientific Cooperation

ICAS In the News

On Monday, July 18, 2022, Senior Fellow Sourabh Gupta was quoted by China Daily on President Biden’s and President Putin’s recent visits to the Middle East.

  • “”Each of the parties involved is… seeking a transactional interest, and much of that has to do with near-term oil prices.”
  • Putin “wants to encourage Iran to stick to its hard line on the nuclear negotiations for the time being so that a deal is not in the offing-and thereby Iranian crude, too, does not enter the global oil market, and Americans and Europeans continue to suffer from high oil prices and high inflation”.
  • “In the meantime, witness the Americans and Europeans suffering from higher oil prices, which is a result of the embargoes that they have unilaterally forced on Iranian oil in the first place”.

On Sunday, July 10, 2022, Senior Fellow Sourabh Gupta discussed the Antony Blinken-Wang Yi bilateral meeting on CGTN America.

  • “I think the tensions were there going into the meeting—the tensions will continue even after the meeting on the Ukraine issue—but I think the U.S. administration is reasonably assured that China was not planned, as is not and was not planning to become an important player in backfilling many of those sanctions.”
Senior Fellow Sourabh Gupta speaking on CGTN America on July 10, 2022.