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News Highlight: Quiet Success for China at G20

By The ICAS Team

July 24, 2017

President Donald J. Trump and President Xi Jinping at the G20 Summit in Germany | July 8, 2017 (Official White House Photo by Shealah Craighead)

In the News

Quiet Success for China at G20 as Xi Avoids Drama and Spotlight
Ben Blanchard
Reuters, July 10

China Sends Troops to Djibouti, Establishes First Overseas Military Base
Brad Lendon and Steve George
CNN, July 12

Apple Sets up China Data Center to Meet New Cyber-Security Rules
Cate Cadell and Brenda Goh
Reuters, July 12

China’s Economic Growth Holds Steady Despite Slowdown Fears
Joe McDonald
Associated Press, July 16

China Pushes Hard in Border Dispute With India
Vindi Doshi and Simon Denyer
The Washington Post, July 19

China Showers Myanmar With Attention, As Trump Looks Elsewhere
Jane Perlez
The New York Times, July 19

Trump’s Honeymoon With China Comes to an End
Andrew Mayeda and Saleha Mohsin
Bloomberg, July 19

Articles and Analysis

Time for Trump to Get Tough on China
Anthony Ruggerio
Politico, July 6

After North Korea’s July 4th ICBM launch, the author suggests that the United States should toughen its stance on Chinese banks and companies that enable North Korea to evade sanctions. The crux of the argument is that a harder stance is needed for U.S. policy makers “because [China] fears instability in North Korea even more than it fears a nuclear North Korea.” The author’s suggest in order to effect change in China’s overly lenient behavior,  United States should use significant fines to drive a wedge between the banks and other sanctions evasions system and Chinese political leaders who are soft on North Korea.

China’s Quest to End its Century of Shame
Howard French
The New York Times, July 13

French interprets China’s actions in the South China Sea as a signal that China is seeking to dominate the region and exclude foreign powers. He attributes these goals to not just geopolitics, but also to shoring up nationalism and political legitimacy domestically. To this end, the most visible parts of China’s foreign policy such as the nine-dash line in the South China Sea have been promoted in places like Chinese passports and Chinese manufactured globes. The implication of this nationalist growth is that as China tries to restore what it perceives to be its rightful place, it will become more difficult to work with.

Six Months Of President Trump’s China Policy
Emily Bulkely
U.S. China Policy Foundation, July 14

Bulkely reviews the U.S.-China relationship under the Trump presidency and notes that since the Mar-a-Lago meeting in April, the relationship has been underpinned by the crisis on the Korean peninsula. China’s inability to reign in North Korea’s nuclear program has frustrated the Trump administration, and other areas of the relationship are similarly worsening. Issues of contention include protectionist measures being leveraged against American businesses operating in China, the continuation of the South China Sea dispute, and disagreements over Taiwan. In response, the Trump administration is considering expanding the powers of the Committee on Foreign Investment in the United States to subject Chinese investors to restrictions, and conducting additional, and more routinized freedom of navigation operations in the South China Sea.

Expect More Process than Progress at U.S. China Comprehensive Economic Dialogue
David Dollar and Ryan Hass
Brookings, July 19

As Dollar and Hass predicted, the U.S.-China Comprehensive Economic Dialogue did not bear any major fruits in terms of easing the trade tensions between the two sides. They offer several reasons for this outcome, including internal pressures in China due to the upcoming 19th Party Congress, potential U.S. steel tariffs  overshadowing the talks, and a general unwillingness on both sides to give in on major issues.

Should the U.S. Play Hardball With China on Trade?
Tom Hoffecker and Duncan Innes-Ker
ChinaFile, July 20

With the United States considering placing steel tariffs on China, the authors analyze the pros and cons of such a move. Hoffecker notes that while steel tariffs would likely bring about a short-term political win for the Trump administration, it would worsen the relationship in the long run, potentially harming U.S. producers who rely on imports from China. The authors recommend that the administration find avenues other than steel tariffs in responding to China. 

Events, Videos, and Discussion

Joint U.S.-China Think-Tank Project on the Future of U.S.-China Relations
Event hosted by CSIS, July 6

On July 6th, CSIS hosted an event to release a major report on U.S.-China relations, written by a group of academic and policy specialists from China, as well as Asia policy experts from some of America’s leading foreign policy think tanks. The report is the product of a year-long effort in which American and Chinese experts prepared parallel reports with analyses and policy recommendations on several critical areas that shape the relationship: military relations, the Asia-Pacific region, economic relations, global governance, and domestic politics.

The panelists provided a balanced and sober analysis of the most pressing issues facing the relationship, from regional issues such as North Korea and the South China Sea to the bilateral economic relationship to the evolving rules surrounding global governance. The reports identify areas of common understanding but also substantial differences in perspective between the American and Chinese governments. The report offers proposals for how to manage these differences as well as promote cooperation in areas of mutual interest.

Cross-Strait Relations Re-examined: Towards a New Normal?
Event hosted by CSIS, July 13

This conference on cross-strait relations examined the United States’ role in the trilateral relationship between Taiwan, China and the United States. The all day session provided an overview of the status quo and discussed possible scenarios for the future of the trilateral relationship. Policy recommendations included increased Taiwan-U.S. ties through actions such as a potential free trade agreement, with a secondary emphasis on moderating Chinese actions.

Cybersecurity of Protectionism? Defusing the Most Volatile Issue in the U.S.-China Relationship
Daniel Ikenson
Report hosted by Cato Institute, July 18

This report analyzes the cyber dimension of the U.S.-China relationship, and finds that both parties are deeply engaged in a technology trade war under the pretext of national security. While there is a legitimate threat posed by cybersecurity, cyber theft and cyber espionage, the report finds that governments “are also obligated to minimize the collateral damage” stemming from their cybersecurity efforts. The report urges both sides to adopt cybersecurity policies that combine “valid statistical methods with best business practices.”

Seventh Annual CSIS South China Sea Conference
Event hosted by CSIS, July 18

This full-day conference provided for in-depth discussion and analysis of the future of the South China Sea disputes, and potential responses, amid policy shifts in Beijing, Manila, and Washington. ICAS’s Executive Director Nong Hong participated in the conference, as well as experts from throughout the region, including claimant countries. Experts reviewed recent developments, legal and environmental issues, the strategic balance between the United States and China, and U.S. policy under the Trump administration.

The Power of Ideas: The Rising Influence of Thinkers and Think Tanks in China
Event hosted by Brookings China, July 20

Under President Xi Jinping’s leadership, think tanks have become increasingly important to assessing and crafting domestic and foreign policy in China. What are the leading think tanks in China and who are the key players in these institutions? What are the dynamics between the Chinese government and think tanks? Are China’s efforts to promote new types of think tanks likely to succeed?

On July 20, the Brookings-Tsinghua Center for Public Policy and the Penn Wharton China Center co-hosted a discussion on “The power of ideas: The rising influence of thinkers and think tanks in China,” in an attempt to address these questions and better understand the environment that Chinese think-tanks operate in.