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China's Economic Recovery and Dual Circulation Model
BRIEFING China's economic recovery and dual circulation model SUMMARY After a delayed response to the outbreak of the novel coronavirus in late 2019, China has expanded its sophisticated digital surveillance systems to the health sector, linking security and health. It has apparently successfully contained the virus, while most other countries still face an uphill battle with Covid-19. China emerged first from lockdown, and its economy rapidly entered a V-shaped recovery. As in 2008, China is driving the global recovery and will derive strategic gains from this role. However, China's relations with advanced economies and some emerging markets have further deteriorated during the pandemic, as its aggressive foreign policy posture has triggered pushback. This has created a more hostile environment for China's economic development and has had a negative impact on China's hitherto almost unconstrained access to these economies. The need to make the Chinese economy more resilient against external shocks and the intention to tap into the unexploited potential of China's huge domestic market in order to realise the nation's ambitions of becoming a global leader in cutting-edge technologies have prompted the Chinese leadership to launch a new economic development paradigm for China. The 'dual circulation development model' still lacks specifics but is expected to be a key theme in China's 14th Five-Year Plan (2021-2025) to be officially approved in March 2021. The concept suggests that, in future, priority will be given to 'domestic circulation' over 'international circulation'. China's more inward-looking development strategy geared towards greater self-reliance in strategic sectors requires major domestic structural reform and investment to unleash the purchasing power of China's low-end consumers and the indigenous innovation efforts to achieve the technological breakthroughs needed. -
China's Dual Circulation Economy
THE SHRINKING MARGINS FOR DEBATE OCTOBER 2020 Introduction François Godement This issue of China Trends started with a question. What policy issues are still debated in today’s PRC media? Our able editor looked into diff erent directions for critical voices, and as a result, the issue covers three diff erent topics. The “dual circulation economy” leads to an important but abstruse discussion on the balance between China’s outward-oriented economy and its domestic, more indigenous components and policies. Innovation, today’s buzzword in China, generates many discussions around the obstacles to reaching the country’s ambitious goals in terms of technological breakthroughs and industrial and scientifi c applications. But the third theme is political, and about the life of the Communist Party: two-faced individuals or factions. Perhaps very tellingly, it contains a massive warning against doubting or privately minimizing the offi cial dogma and norms of behavior: “two-faced individuals” now have to face the rise of campaigns, slogans and direct accusations that target them as such. In itself, the rise of this broad type of accusation demonstrates the limits and the dangers of any debate that can be interpreted as a questioning of the Party line, of the Centre, and of its core – China’s paramount leader (领袖) Xi Jinping. The balance matters: between surviving policy debates on economic governance issues and what is becoming an all-out attack that targets hidden Western political dissent, doubts or non-compliance beyond any explicit form of debate. Both the pre-1949 CCP and Maoist China had so-called “line debates” which science has seen this often turned into “line struggles (路线斗争)”: the offi cial history of the mostly as a “fragmented pre-1966 CCP, no longer reprinted, listed nine such events. -
November 2020 Trade Bulletin
November 9, 2020 Highlights of This Month’s Edition • Bilateral trade: In the first three quarters of 2020, the U.S. goods trade deficit was $223 billion, down 5 percent year-on-year, with agricultural exports to China up 92.8 percent from last year; in Q2 2020, the U.S. services surplus with China reached $11.7 billion, a record low due to the COVID-19 pandemic. • Policy trends in China’s economy: At the Fifth Plenum, the CCP stressed economic self-reliance and stronger domestic innovation; China’s new Export Control Law has a broad scope that creates the potential for arbitrary restrictions on Chinese exports, extraterritorial reach, and retaliation against foreign exporters and end users; China’s government introduced the digital RMB; the new Chengdu-Chongqing regional integration plan reflects a multiyear strategy of fostering economic development centered on innovation and exports. • Quarterly review of China’s economy: China reported GDP growth of 4.9 percent year-on-year in Q3, but a sluggish recovery elsewhere in the world and concerns over debt could undermine growth going forward; this year’s “Golden Week” saw a return to consumption, though indicators point to worsening income disparities. • Financial markets: Suspension of blockbuster Ant Group IPO underscores the CCP’s control over private enterprise in China. • In focus – Trends in supply chain realignment: Preliminary data and anecdotal evidence suggest the complete uprooting of supply chains out of China is unlikely, with gradual diversification emerging as a more prominent -
China As a "Cyber Great Power": Beijing's Two Voices In
SECURITY, STRATEGY, AND ORDER APRIL 2021 CHINA AS A “CYBER GREAT POWER” BEIJING’S TWO VOICES IN TELECOMMUNICATIONS RUSH DOSHI, EMILY DE LA BRUYÈRE, NATHAN PICARSIC, AND JOHN FERGUSON CHINA AS A “CYBER GREAT POWER” BEIJING’S TWO VOICES IN TELECOMMUNICATIONS RUSH DOSHI, EMILY DE LA BRUYÈRE, NATHAN PICARSIC, AND JOHN FERGUSON EXECUTIVE SUMMARY External Chinese government and commercial messaging on information technology (IT) speaks in one voice. Domestically, one hears a different, second voice. The former stresses free markets, openness, collaboration, and interdependence, themes that suggest Huawei and other Chinese companies ought to be treated like other global private sector actors and welcomed into foreign networks. Meanwhile, domestic Chinese government, commercial, and academic discourse emphasizes the limits of free markets and the dangers of reliance on foreign technologies — and, accordingly, the need for industrial policy and government control to protect technologies, companies, and networks. Domestic Chinese discourse also indicates that commercial communication networks, including telecommunications systems, might be used to project power and influence offensively; that international technical standards offer a means with which to cement such power and influence; and — above all — that IT architectures are a domain of zero-sum competition. That external Chinese government and corporate messaging might be disingenuous is by no means a novel conclusion. However, the core differences between that messaging and Chinese internal discussion on IT remain largely undocumented — despite China’s increasing development of and influence over international IT infrastructures, technologies, and norms. This report seeks to fill that gap, documenting the tension between external and internal Chinese discussions on telecommunications, as well as IT more broadly. -
Threats to the US Research Enterprise: China's Talent Recruitment
United States Senate PERMANENT SUBCOMMITTEE ON INVESTIGATIONS Committee on Homeland Security and Governmental Affairs Rob Portman, Chairman Tom Carper, Ranking Member Threats to the U.S. Research Enterprise: China’s Talent Recruitment Plans STAFF REPORT PERMANENT SUBCOMMITTEE ON INVESTIGATIONS UNITED STATES SENATE Threats to the U.S. Research Enterprise: China’s Talent Recruitment Plans TABLE OF CONTENTS I. EXECUTIVE SUMMARY .................................................................................. 1 II. FINDINGS OF FACT AND RECOMMENDATIONS ................................... 7 III. BACKGROUND ................................................................................................ 14 A. China’s Goal to be the Science and Technology Leader by 2050 .................. 14 1. From Brain Drain to Brain Gain .............................................................. 15 2. China’s Systematic Targeting of Critical Technologies ........................... 17 3. China’s Military-Civilian Fusion Strategy .............................................. 18 4. China’s Strategic Plan for Talent Recruitment ....................................... 20 B. Congressional Testimony on Chinese Talent Recruitment Plans ................ 30 C. China Deletes References to the Thousand Talents Plan ............................. 32 D. After Implementation of Talent Recruitment Plans, More Chinese Students, Researchers, and Scientists are Returning to China .................................... 35 IV. EFFORTS TO SECURE U.S. RESEARCH ................................................. -
0Fd92edfc30b4f9983832a629e3
NEWS BRIEF 2 NATIONAL PEOPle’s CoNGRESS OF CHINA People display the national flag in Golden Bauhinia Square in Hong Kong Special Ad- ministrative Region in south China. Li Gang ISSUE 1 · 2021 3 Safeguarding people’s health, building 10 quality basic public education stressed 目录 Contents Annual Session 2021 12 Special Report: NPC Work Report Xi stresses high-quality 6 development, improving 22 President Xi and the people people’s well-being Working for the people 8 14 New development philosophy, Senior leaders attend delibera- Law Stories of HK ethnic unity stressed tions at annual legislative session 10 16 24 Safeguarding people’s health, People as masters of their country An imperative step for long-term stability building quality basic public is essence of democracy in Hong Kong education stressed 26 Decision to improve Hong Kong elector- al system adopted 28 Explanations on the Draft Decision of the National People’s Congress On Improv- ing the Electoral System of The Hong Kong Special Administrative Region 4 NATIONAL PEOPle’s CoNGRESS OF CHINA An imperative step for long-term 24 stability in Hong Kong China unveils action plan for 36 modernization ISSUE 1 · 2021 Spotlight Insights 34 China projects confidence with over 6% 42 Xi’s messages point way for China at VOL.52 ISSUE 1 March 2021 GDP growth target historic development juncture Administrated by General Office of the Standing NPC Highlights Committee of National People’s Congress 44 NPC Standing Committee strongly Chief Editor: Wang Yang condemns US sanctions on Chinese 36 General -
China's Quest for Global Primacy: an Analysis of Chinese International
C O R P O R A T I O N TIMOTHY R. HEATH, DEREK GROSSMAN, ASHA CLARK China’s Quest for Global Primacy An Analysis of Chinese International and Defense Strategies to Outcompete the United States For more information on this publication, visit www.rand.org/t/RRA447-1 Library of Congress Cataloging-in-Publication Data is available for this publication. ISBN: 978-1-9774-0615-6 Published by the RAND Corporation, Santa Monica, Calif. © Copyright 2021 RAND Corporation R® is a registered trademark. Cover images: prospective56/iStock/ Getty Images Plus; MF3d/iStock/Getty Images Plus Limited Print and Electronic Distribution Rights This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited. Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial use. For information on reprint and linking permissions, please visit www.rand.org/pubs/permissions. The RAND Corporation is a research organization that develops solutions to public policy challenges to help make communities throughout the world safer and more secure, healthier and more prosperous. RAND is nonprofit, nonpartisan, and committed to the public interest. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. Support RAND Make a tax-deductible charitable contribution at www.rand.org/giving/contribute www.rand.org Preface This research explores possible international and defense strategies that China might employ to outcompete the United States and achieve a position of international primacy. -
Threats to the US Research Enterprise: China's Talent Recruitment
United States Senate PERMANENT SUBCOMMITTEE ON INVESTIGATIONS Committee on Homeland Security and Governmental Affairs Rob Portman, Chairman Tom Carper, Ranking Member Threats to the U.S. Research Enterprise: China’s Talent Recruitment Plans STAFF REPORT PERMANENT SUBCOMMITTEE ON INVESTIGATIONS UNITED STATES SENATE Threats to the U.S. Research Enterprise: China’s Talent Recruitment Plans TABLE OF CONTENTS I. EXECUTIVE SUMMARY .................................................................................. 1 II. FINDINGS OF FACT AND RECOMMENDATIONS ................................... 7 III. BACKGROUND ................................................................................................ 14 A. China’s Goal to be the Science and Technology Leader by 2050 .................. 14 1. From Brain Drain to Brain Gain .............................................................. 15 2. China’s Systematic Targeting of Critical Technologies ........................... 17 3. China’s Military-Civilian Fusion Strategy .............................................. 18 4. China’s Strategic Plan for Talent Recruitment ....................................... 20 B. Congressional Testimony on Chinese Talent Recruitment Plans ................ 30 C. China Deletes References to the Thousand Talents Plan ............................. 32 D. After Implementation of Talent Recruitment Plans, More Chinese Students, Researchers, and Scientists are Returning to China .................................... 35 IV. EFFORTS TO SECURE U.S. RESEARCH ................................................. -
What Does US-China Decoupling Mean for Emerging Markets? November 2020
Marketing material for professional investors and advisers only Foresight What does US-China decoupling mean for emerging markets? November 2020 What does US-China decoupling mean for emerging markets? A decoupling of economic and political ties between the US and China is likely to be one of the most important drivers of financial markets in the emerging world during the next decade. Ever since Donald Trump swept to power by promising to put “America First”, policies aimed at clawing back political, economic and military power from China have become popular on both sides of the aisle in Washington. The victory of President-elect Joe Biden is unlikely to change this. And, if anything, a more methodical, consensus-building approach from a Democrat government may ultimately be more effective in driving decoupling. Meanwhile, the global pandemic may also cause companies to reassess the risk of having supply chains concentrated in China. However, it is not just the US that is pulling away. Policymakers in China have for some time been expressing more overtly a desire to topple the US from number one spot through strategies such as “Made in China 2025” and “Dual Circulation”. The former seeks to establish China as a global leader in manufacturing, with a focus on more technology intensive production. Dual circulation incorporates the goal to strengthen the domestic economy, while continuing to grow China’s importance internationally. Meanwhile, Beijing’s push to re-orientate supply chains around itself through the “Belt and Road Initiative” implies a major shake-up of the world order. US aggression has only accelerated these ambitions. -
CHINA AFTER COVID-19 and Central Asia Centre at ISPI Occhus Nem
CHINA AFTER CHINA COVID-19 Aldo Ferrari Vo, prissimus, es ete ingulla omnique pescii facipte Head of the Russia, Caucasus di, Catabulum senesillat, Ti. Ipimist raricaestrum iniam CHINA AFTER COVID-19 and Central Asia Centre at ISPI occhus nem. Valius ces inti, nem, nondiem ad de iam, and Associate Professor of popopubi pripteme patum consule ribullego condi est L. Economic Revival and Founded in 1934, ISPI is Armenian Language and Culture, M. Catilibutem Romanducon se enatquo nosum iaciam an independent think tank committed to the study of History of the Caucasus and alis, Castris simuspio medo, ut quidet publium it o imis in Challenges to the World Central Asia, and History of the international political and verescrit quit rei furitum pondi, que obusquistata L. Serei Russian Culture at Ca’ Foscari economic dynamics. University, Venice. iae etorem et pota noc, C. Fachin sedescri se elum cla edited by Alessia Amighini It is the only Italian Institute maximpliam fore nocus ipsentica Sciis serumen tientem introduction by Paolo Magri – and one of the very few in Eleonora Tafuro Ambrosetti eo, nonsult oraectesses los conimpr orumus cotilicatum int Europe – to combine research Research Fellow at the quitam orici patquis verit. activities with a significant Russia, Caucasus and Central Aximius omnenda ccitaricupio C. Ubliam or halem adhuitr commitment to training, events, Asia Centre at ISPI. optemors loc ta maio vid re auctatius iam. and global risk analysis for It, optercera mo ertiae te, quam tus crist vicum publicus, companies and institutions. Catus latum us actelis et? Ehebatium ex senatus conscre ISPI favours an interdisciplinary ssupienterum hala mod con tum opublis, que novit. -
Haiyang Qiangguo: China As a Maritime Power
15 March 2016 Haiyang Qiangguo: China as a Maritime Power A paper for the “China as a Maritime Power” Conference Revised and updated March 2016 CNA Headquarters Arlington, Virginia By Dr. Thomas J. Bickford Senior Research Scientist China Studies Division of CNA We should pay close attention to both development and security. The former is the foundation of the latter while the latter is a precondition for the former. A wealthy country may build a strong army, and a strong army is able to safeguard a country.1 Xi Jinping pointed out: China is at once a continental power and a maritime power (haiyang daguo) and it possesses broad maritime strategic interests…These achievements have laid a solid foundation for building a strong maritime power (haiyang qiangguo).2 At its 18th Party Congress in November 2012, the Chinese Communist Party adopted a new goal—that China “should enhance our capacity for exploiting marine resources, develop the marine economy, protect the marine ecological environment, resolutely safeguard China’s 1 Xi Jinping, “A Holistic View of National Security,” in The Governance of China, (Beijing: Foreign Languages Press, 2014). 2 “Xi Jinping Stresses the Need To Show Greater Care About the Ocean, Understand More About the Ocean and Make Strategic Plans for the Use of the Ocean, Push Forward the Building of a Maritime Power and Continuously Make New Achievements at the Eighth Collective Study Session of the CPC Central Committee Political Bureau.” Xinhua. July 31, 2013. 1 maritime rights and interests, and build China into a strong maritime power (emphasis added).3 Subsequent commentary by Chinese leaders and national-level documents characterize the goal of becoming a maritime power as essential to China’s national development strategy, the people’s well-being, the safeguarding of national sovereignty, and the rejuvenation of the Chinese nation.4 The 18th Party Congress thus marks an important defining moment. -
Section 2: the China Model: Return of the Middle Kingdom
SECTION 2: THE CHINA MODEL: RETURN OF THE MIDDLE KINGDOM Key Findings • The Chinese Communist Party (CCP) seeks to revise the inter- national order to be more amenable to its own interests and authoritarian governance system. It desires for other countries not only to acquiesce to its prerogatives but also to acknowledge what it perceives as China’s rightful place at the top of a new hierarchical world order. • The CCP’s ambitions for global preeminence have been con- sistent throughout its existence: every CCP leader since Mao Zedong has proclaimed the Party would ultimately prove the superiority of its Marxist-Leninist system over the rest of the world. Under General Secretary of the CCP Xi Jinping, the Chi- nese government has become more aggressive in pursuing its interests and promoting its model internationally. • The CCP aims to establish an international system in which Beijing can freely influence the behavior and access the mar- kets of other countries while constraining the ability of others to influence its behavior or access markets it controls. The “com- munity of common human destiny,” the CCP’s proposed alter- native global governance system, is explicitly based on histor- ical Chinese traditions and presumes Beijing and the illiberal norms and institutions it favors should be the primary forces guiding globalization. • The CCP has attempted to use the novel coronavirus (COVID-19) pandemic to promote itself as a responsible and benevolent global leader and to prove that its model of governance is su- perior to liberal democracy. Thus far, it appears Beijing has not changed many minds, if any.