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Special News Focus: Rearranging U.S. China Policy

By The ICAS Team

March 3, 2021
U.S. Secretary of State Antony Blinken, February 2021. (Photo: US Department of State via Flickr)

Special News Focus: Rearranging U.S. China Policy

DeSantis and Florida GOP target China after CPAC
By Andrew Atterbury
POLITICO, March 1

Following the Conservative Political Action Conference (CPAC) in Orlando, Florida, Florida Governor Ron DeSantis and top GOP lawmakers unveiled legislation to create new guidelines for universities, state agencies and local governments working with foreign governments like China and the Republic of Iran as part of a push to interrupt the theft of intellectual property. As part of his six-minute speech, DeSantis explained: “We need to take action, stand firm against the Chinese Communist Party and foreign influence and interference in American research, education and public affairs.”

Biden Trade Pick Says China Must Deliver on Phase-One Pact
By Eric Martin and Jenny Leonard
Bloomberg, February 25 [Paywall]

During her confirmation hearing on Thursday to become the U.S. Trade Representative, Katherine Tai said that China “needs to deliver” on the promises it made in its Phase-One trade agreement in January 2020, adding that the Biden administration needs to be “exploring all our options” to overcome obstacles. Tai is generally accepted by both parties and is expected to receive confirmation, though critics are questioning Tai’s lack of details with her plans to keep China accountable.

US and allies to build ‘China-free’ tech supply chain
By Taisei Hoyama and Yu Nakamura
Nikkei Asia, February 24

President Joe Biden signed an executive order to address the global semiconductor chip shortage and resolve the supply chain for chip manufacturing; a business that is currently dominated by China and Taiwan. The executive order instigates a 100-day review of four vital products and “initiates a long-term review of the industry…to fortify our supply chains at every step.”

US must scrap tariffs and end restrictions on Chinese tech, Wang Yi says
By Teddy Ng
South China Morning Post, February 22

A week after U.S. Secretary of Treasury Janet Yellen indicated the tariffs would stay in place for now, Chinese Foreign Minister Wang Yi spoke at a forum in Beijing, stating that “[w]e hope the US will adjust its policies as soon as possible, removing the unreasonable tariffs imposed on Chinese products, and unilateral sanctions on Chinese companies and science research institutes, and the unreasonable suppression of Chinese tech.” He added that “[w]ith the emergence and unfolding of global challenges, the areas where China and the United States need to cooperate are not fewer, but more. The space for cooperation is not narrower, but wider.”

China raises rare earth quotas in ‘goodwill trade signal’ to US
By Liu Zhen
South China Morning Post, February 20

The Ministry of Industry and Information Technology and the Ministry of Natural Resources in Beijing officially announced that first-half output for the minerals could increase by more than a quarter to 84,000 tons. Rare earths are vital in an extensive array of technologies ranging from smartphones to pharmaceuticals and military machines. As the world’s top rare earth producer, accounting for more than sixty percent of the world’s production and possessing more than 36 percent of global rare earth reserves, the U.S. imported about 80 percent of its rare earths from China between 2015 and 2018, raising national security concerns about U.S. dependability on China.

Blinken Rallies ‘Quad’ Democracies to Counter Assertive China
By Jason Scott
Bloomberg, February 17

New U.S. Secretary of State Antony Blinken has held his first virtual meeting since President Joe Biden’s election with counterparts from Japan, India and Australia, showing support for the so-called Quad grouping that seeks to counter an increasingly assertive China in the Indo-Pacific. The talks, held Thursday Washington time, included discussions on “the priority of strengthening democratic resilience in the broader region,” Blinken’s spokesperson Ned Price said in a statement. The partners also pledged “to strengthen cooperation on advancing a free and open Indo-Pacific region, including support for freedom of navigation and territorial integrity.”

Biden Speaks with Chinese President Xi Jinping for First Time as President
By Vivian Salama
CNN, February 11

President Joe Biden spoke with China’s President Xi Jinping for two hours late Wednesday, their first call since Biden took office. The introductory call touched upon a range of issues against the backdrop of escalating tensions between the two countries. [White House Readout of the Call] [Xinhua Report of the Call]

Joe Biden creates Pentagon task force on China
By Demetri Sevastopulo and Katrina Manson
Financial Times, February 10 [Paywall]

President Joe Biden announced on Wednesday the formation of a Pentagon task force to help craft a comprehensive China policy that will examine everything from the deployment of US forces around the world to relations with the Chinese military. The task force, which will include uniformed officers and civilians, will produce recommendations within four months. It will be led by Ely Ratner, a China expert and Pentagon official.

In the News

US Sec. of State Antony Blinken calls for release of Hong Kong democracy campaigners
By AFP
Hong Kong Free Press, March 1

55 of Hong Kong’s “best-known pro-democracy campaigners” were arrested and charged on February 28 under the new national security law, bringing a brief renewed protest by Hong Kong citizens angered over the charges. The same day, Secretary of State Antony Blinken called for the immediate release of the “dissidents” charged, stating in a tweet that “Political participation and freedom of expression should not be crimes. The US stands with the people of Hong Kong.”

South China Sea: PLA stages live-fire missile drill, US Navy on Paracels patrol
By Catherine Wong
South China Morning Post, February 28 [Paywall]

Chinese state broadcaster CCTV announced on February 27 that the People’s Liberation Army Southern Theatre Command conducted a live-fire drill to test its response to repeated missile attacks in a “far sea.” According to the CCTV report, the drill involved the guided-missile destroyer Yinchuan, guided-missile frigate Hengyang, the amphibious dock landing ship Wuzhishan, and the support ship Chagan Hu. Simultaneously, the US Navy surveillance ship Impeccable was reportedly sailing around the Paracel Islands and a U.S. reconnaissance aircraft was sent to fly over the marine coastal waters southwest of Taiwan.

Explainer: What to expect from China’s annual meeting of parliament
By Gabriel Crossley
Reuters, February 24

About 5,000 delegates from across China will gather in Beijing in the first week of March for the annual meeting of parliament, where China will announce goals for 2021 as well as its next five-year plan for economic development. The National People’s Congress (NPC), China’s “rubber-stamp parliament,” and the Chinese People’s Political Consultative Conference (CPPCC), known as the “two sessions,” will start meetings on March 5 and are expected to include a release of China’s 14th five-year-plan and an annual report for 2021.

China Faces European Obstacles as Some Countries Heed U.S. Pressure
By Daniel Michaels and Valentina Pop
The Wall Street Journal, February 23 [Paywall]

In recent months, multiple smaller countries across Europe have begun to place obstacles against China, reportedly leaning more towards the cautious U.S. positions on Chinese company and government influences in their countries. For instance, some have banned Chinese companies from investing or contracting in their countries or have canceled public tenders that Chinese state-owned companies were slated to win. Some European representatives have linked the shift with disappointing outcomes from previous Belt and Road Initiative contracts that fell through.

Chinese spyware code was copied from America’s NSA: researchers
By Raphael Satter
Reuters, February 22

Israeli researchers from Check Point Software Technologies in Tel-Aviv released a new report that details how part of a Chinese malware, known as Jian, that was used against the U.S. in 2017 is a “kind of a copycat, a Chinese replica” of software built by the U.S. National Security Agency (NSA). The leak is believed to have occurred before 2016 and 2017 when a “mysterious group” known as “Shadow Brokers” published some of the NSA’s most dangerous code to the internet, inferring that the NSA has “repeatedly lost control of its own malware.”

U.S. concerned China’s new coast guard law could escalate maritime disputes
By Reuters Staff
Reuters, February 19

In January, Beijing passed a new law that explicitly allows its coast guard to fire on foreign vessels. The State Department explained that it was “concerned by language in the law that expressly ties the potential use of force, including armed force, by the China coast guard to the enforcement of China’s claims, and ongoing territorial and maritime disputes” which, the representative added, were refuted in a 2016 arbitral tribunal ruling. The Philippines also lodged a diplomatic protest over the law soon after its announcement, describing it as a “threat of war.”

Decoupling With China Would Hurt U.S. Businesses, Chamber of Commerce Says
By Bob Davis
The Wall Street Journal, February 17

A new 88-page report by the U.S. Chamber of Commerce titled “Understanding U.S.-China Decoupling” warns that a complete cutoff of sales to China “would cost the U.S. aircraft and aviation industry between $38 billion and $51 billion in sales annually” and the semiconductor industry “$83 billion in revenue and 124,000 jobs.” The Chamber’s senior vice president for Asia explained that the “goal [of the report] is to make sure that the administration takes a whole-of-government approach to China.”

China overtakes U.S. as Europe’s main trading partner for the first time
By Silvia Amaro
CNBC, February 16

New numbers released by the European Commission’s Eurostat revealed that exports to China grew by 2.2% last year and imports rose by 5.6% while exports to the U.S. dropped by 8.2% and imports fell by 13.2%. The rapid change was explained by the lack of a ‘second wave’ of social restrictions in China due to the coronavirus. Clashes between the U.S. and China over 5G and technology transfer markets–as well as other contentions such as human rights concerns–continue to be a grave concern for European counterparts who are trying to establish an acceptable balance.

BBC News banned in China, one week after CGTN’s license withdrawn in the UK
By Philip Wang and Jonny Hallam
CNN Business, February 14

According to a statement from China’s National Radio and Television Administration (NRTA), BBC World News has been banned from airing in China, stating that it “infringed the principles of truthfulness and impartiality in journalism.” The statement came a week after the British media regulator Ofcom announced that it had withdrawn CGTN’s license for broadcasting in the United Kingdom. Observers question how much of an impact the ban will have since BBC broadcasting in China was already limited to international hotels.

North Korea looms as next big test for China-US relations
By Laura Zhou and Eduardo Baptista
South China Morning Post, February 14 [Paywall]

China and the US might play the North Korea card against each other, but Pyongyang might also use the same tactic to advance its nuclear weapons programme, observers say. On Tuesday, State Department spokesman Ned Price said the US remained “committed to denuclearisation of North Korea”. Observers said the new US president was likely to take a more traditional and pragmatic diplomatic approach than his predecessor.

China Hints at a Shift on Climate
By Sha Hua
The Wall Street Journal, February 12 [Paywall]

China’s Ministry of Ecology and Environment concluded in a report last month that China’s National Energy Administration had skirted air-pollution regulations, allowed excess construction of coal plants and failed to heed instructions on environmental matters. The rare public rebuke—authorized by two of China’s top state authorities, the Chinese Communist Party’s Central Committee and the country’s cabinet—signaled to some that China’s environmental regulators had been empowered to counter the country’s coal industry.

Citing China threat, business groups, experts push Biden administration for digital policy
By Andrea Shalal and Nandita Bose
Reuters, February 11

The Biden administration needs to develop an aggressive, coherent digital policy to counter China’s growing technological power, said the American Leadership Initiative (ALI) in a report to be published on Thursday. The White House should increase broadband access in the United States, help U.S. companies sell abroad and take the lead on global data and technology policy worldwide – or risk U.S. tech companies being overtaken by Beijing, ALI says. The think tank is led by former U.S. trade negotiator Orit Frenkel.

China issues final version of anti-monopoly guidelines as Beijing moves to rein in Big Tech
By Jane Zhang and Iris Deng
South China Morning Post,February 8 [Paywall]

China issued the final version of the country’s new antitrust guidelines targeting internet platforms after making dozens of changes to an early draft, creating an important tool for Beijing to crack down on monopolistic practices such as forcing merchants to choose only one online channel or charging different prices for clients. The rules came into effect on Sunday.

Articles and Analysis

Why the US Should Pursue Cooperation with China
By Jeffrey D. Sachs
Project Syndicate, February 25

“Biden’s foreign policy with China should begin with a search for cooperation rather than a presumption of conflict. Xi has pledged that China will “take an active part in international cooperation on COVID-19,” continue to open up to the world, and promote sustainable development and “a new type of international relations.” US diplomacy would be wise to aim for engagement with China in these areas. Today’s hostile rhetoric risks creating a self-fulfilling prophecy.”

“Cooperation is not cowardice, as American conservatives repeatedly claim. Both the US and China have much to gain from it: peace, expanded markets, accelerated technological progress, the avoidance of a new arms race, progress against COVID-19, a robust global jobs recovery, and a shared effort against climate change. With reduced global tensions, Biden could direct the administration’s efforts toward overcoming the inequality, racism, and distrust that put Trump in power in 2016 and still dangerously divide American society.”

Competition With China Shouldn’t Dictate U.S. Foreign Policy
By Ali Wyne
World Politics Review, February 25 [Paywall]

“One of former President Donald Trump’s principal legacies was to elevate the attention that U.S. foreign policy accords to China. His administration argued that America’s erstwhile “engage but hedge” approach had failed and that it was time to take a tougher line. The results of his policies, though, suggest that adopting an overly China-centric U.S. foreign policy is mistaken.”

Can America Restore Its Credibility in Asia? A Dire Situation Demands an Ambitious New Strategy
By Michael Green and Evan Mederios
Foreign Affairs, February 15 [Paywall]

“President Joe Biden entered the White House determined to restore the world’s confidence in the United States. That task is particularly important in the Indo-Pacific, a region that has become as central to geopolitics as Europe was during the Cold War. The United States’ presence, influence, and credibility in the region are flagging, and restoring them will require Biden to climb out of a deep hole. North Korea’s nuclear and missile programs have continued to grow despite President Donald Trump’s reality-show summitry.”

Voices: The Chinese Maritime Police Law
By Admiral (ret.) Takashi Saito, Seokwoo Lee, Ja Ian Chong, Nong Hong, Nguyen Hong Thao, Sumathy Permal
Maritime Awareness Project, February 11-19

“MAP will publish short expert commentaries assessing the Maritime Police Law passed by the People’s Republic of China’s (PRC) National People’s Congress Standing Committee on January 22, 2021. The law, which went into effect on February 1, 2021, authorizes the China Coast Guard to take “necessary warning and control measures” against foreign military or government ships in waters that China views as under its jurisdiction. NBR spoke to experts from across Asia to assess the new law’s impact on territorial and maritime boundary disputes in the South and East China Seas.”

Competition Without Catastrophe: A New China-U.S. Cybersecurity Agenda
By Chen Dongxiao, Lu Chuanying, Sun Haiyong and Jiang Xudong
Shanghai Institutes for International Studies, February 6

“According to the report, the Biden administration would partially return to the Obama era cyber strategy, along the lines of reinstating the White House leadership and strengthening departmental coordination, stressing cybersecurity as a crucial national security issue, as well as fortifying governance capacity of the U.S. in the cyberspace and digital era through revitalized public-private partnership, alliance collaboration and multilateral diplomacy, etc.”

“Meanwhile, the report also argues that although Biden would calibrate the cyber policy of his predecessor, the new administration would largely inherit Trump’s China policy, including that in the area of cyberspace and digital field, and particularly hang on to Trump’s legacy of ‘containment and suppression’ of China. This prospective policy direction will almost assuredly induce complexities to the overall China-U.S. relations including the bilateral dynamics in cyberspace and the digital domain. Predictably, fierce competition between China and the U.S. will continue in the cyber digital transformation, among which the contest for cyberspace rule-making will be further intensified. What’s more, the U.S. behavior of high toning the so-called China-U.S. ideological conflict will for sure to severely impede bilateral efforts in promoting stable cyber relations.”

A Sharper Approach to China’s Military-Civil Fusion Strategy Begins by Dispelling Myths
By Elsa B. Kania and Lorand Laskai
Center for New American Security, February 4

“This policy brief is intended to improve policymakers’ understanding of the challenges that MCF presents to enhance the U.S. government’s ability to grapple with these urgent policy issues. In particular, this analysis considers and seeks to correct several apparent myths—or at best generalizations and oversimplifications—that have been prominent in U.S. debates on the topic.

  • Myth 1: The pursuit of MCF is a new initiative that is unique to Chinese President Xi Jinping.
    • Reality: MCF builds upon a long history of prior policies and initiatives that demonstrate the difficulty of achieving true “fusion,” even in a system with a strong state that seeks to exercise central control.
  • Myth 2: China possesses a clear, perhaps decisive advantage relative to the United States in national defense because of MCF.
    • Reality: As a strategy, MCF is still in its early stages, and its success is difficult to evaluate. American advantages in defense and military capabilities that stem from the strength of the U.S. defense economy and its overall innovation ecosystem shouldn’t be taken for granted. It is not a foregone conclusion that China will successfully surpass the United States in MCF.
  • Myth 3: China has imposed a legal obligation on Chinese companies to participate in MCF.
    • Reality: While China’s party-state does not need a law to compel a company to turn over technology, MCF appears to leverage incentives more than coercion. Moreover, state coercion or direction cannot create the integrated ecosystem that is necessary for the success of MCF.
  • Myth 4: Nearly every Chinese enterprise is already actively involved in MCF. As a result, it is all but inevitable that any collaboration between American and Chinese researchers is likely to end up directly or indirectly supporting military modernization.
    • Reality: At present, a more limited proportion of China’s high-tech enterprises are actively or openly engaged in supporting the military, yet the numbers of companies and universities involved may continue to increase as this strategy gains traction.”

The United States, China, and Taiwan: A Strategy to Prevent War
By Robert D. Blackwill and Philip Zelikow
Council on Foreign Relations, February

“The U.S. strategic objective regarding Taiwan should be to preserve its political and economic autonomy, its dynamism as a free society, and U.S.-allied deterrence—without triggering a Chinese attack on Taiwan.” Proposing “a realistic strategic objective for Taiwan, and the associated policy prescriptions, to sustain the political balance that has kept the peace for the last fifty years,” the authors urge the Joe Biden administration to:

  • affirm that it is not trying to change Taiwan’s status;
  • work with its allies, especially Japan, to prepare new plans that could challenge Chinese military moves against Taiwan and help Taiwan defend itself, yet put the burden of widening a war on China; and
  • visibly plan, beforehand, for the disruption and mobilization that could follow a wider war, but without assuming that such a war would or should escalate to the Chinese, Japanese, or American homelands.”

Highlighted Upcoming Event

How Biden’s Climate Change Policy Impacts its Bilateral Relationships with China and Canada
Event by the Institute for China-America Studies and the China Institute and University of Alberta, March 4

As the United States shows early signs of recommitting itself to the global climate agenda, its effects on global energy supplies, food security, trade, and more are potentially enormous. Thus, its relationships with its partners and competitors will be similarly impacted. This panel discussion will bring together experts from the United States, Canada and China in order to better understand the economic and security impacts and consequences of the Biden administration’s climate and environmental policies on the U.S.-Canada relationship and the U.S.-China relationship.

Speakers:

  • Sally Yozell, Director, Environmental Security, Stimson Center (The United States)
  • Kevin Tu, Adjunct professor, the School of Environment of Beijing Normal University (China), Former China Program Manager, International Energy Agency
  • Jennifer Winter, Associate Professor of Economics and Scientific Director of the Energy and Environmental Policy research division at the School of Public Policy, University of Calgary (Canada)
  • Ranping Song, Developing Country Climate Action Manager at the World Resources Institute (The United States)

Moderator:

  • Nong Hong, Executive Director, Institute for China-American Studies and Senior Research Fellow, China Institute, University of Alberta

Past Events

Partners Amid Uncertainties: The Way Forward in Taiwan-India Relations
Event by Wilson Center, March 3

SCMP China Conference: Southeast Asia
Event by South China Morning Post, February 25-26

Hearing on “Deterring PRC Aggression Toward Taiwan”
Hearing by U.S.-China Economic and Security Review Commission, February 18

Assessing the Alliance: What Lies Ahead for the Korean Peninsula
Event by the Wilson Center, February 17

Confronting Chinese State Capitalism
Event by Center for Strategic and International Studies, February 16

Webinar: Communist China’s Modern Intelligence Reforms
Event by The Institute of World Politics, February 10

Asian Interests and the Path Forward in the New Arctic
Event by Wilson Center Polar Institute, February 8-9

Taiwan in 2021
Event by Global Taiwan Institute, February 4

Online Event: Maritime Security Dialogue – USN: Setting the Theater in the Arctic
Event by the Center for Strategic and International Studies, February 2