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China

China–India border crisis reaches new heights

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An Indian Army convoy moves along a highway leading to Ladakh, at Gagangeer in Kashmir's Ganderbal district 18 June 2020 (Reuters/Danish Ismail/File Photo).

Authors: Harsh V Pant and Kartik Bommakanti, ORF

The latest crisis to engulf China and India erupted over their disputed border in early May 2020, when India discovered the presence of a large number Chinese forces in its claimed territory. It became quickly evident that China had occupied several areas on India’s side of the Line of Actual Control (LAC) in western Ladakh, as well as a portion of territory in the Indian state of Sikkim.

The ongoing China–India border crisis has its roots in history. India inherited unsettled borders from the British when it gained independence in 1947. Due to the absence of a clearly delineated boundary, there were several bloody clashes between Chinese and Indian forces in the 1950s and 1960s, including a full-scale war in 1962. Another bloody clash in 1967 claimed hundreds of casualties, albeit on a lower scale and intensity than in 1962.

The last time fatalities occurred on the Indian side was in 1975 at Tulung La along the LAC, although it is unclear whether it was the result of an accident or an ambush. Another crisis erupted in 1986 when China’s People’s Liberation Army (PLA) occupied territory at Somdurong Chu, leading to a massive Indian counter-mobilisation. Although this crisis did not result in bloodshed, the face-off lasted seven years before culminating in the 1993 Maintenance of Peace and Tranquillity Agreement and Chinese forces withdrawing from the area. A 1996 agreement on confidence-building measures sought to prevent further tensions.

Despite these mechanisms, a violent clash occurred between the Indian and Chinese armies on 15 July 2020, causing the deaths of 20 Indian soldiers and an unspecified number of PLA casualties.

The territorial claims made by each side defy easy resolution, and both Beijing and New Delhi have mobilised large forces across the entire stretch of the LAC — notwithstanding limited de-escalation in the Galwan Valley, Hot Springs, and Gogra in Ladakh. Though the central sector of the LAC adjacent to the Indian state of Sikkim was previously stable, the Chinese are believed to have made a two-kilometre incursion in an area known as Naku La. It is not evident that the PLA has yet vacated this area.

China is also escalating the situation by laying claim to territory under Bhutan’s control. Beijing is claiming Sakteng Wildlife Sanctuary in eastern Bhutan — close to the Indian state of Arunachal Pradesh that Beijing also claims. China appears to be attempting to drive a stronger bargain in negotiations with India through these expansive claims.

There are several potential pathways to a resolution, but none may have sufficient traction. The first would be New Delhi accepting China’s change of the status quo as a forcible eviction of the PLA might prove well-nigh impossible. These small territorial grabs are primarily tactical on China’s side, targeting minor areas where the chances of success are greatest. But for India, conceding to China’s territorial seizures would only legitimise Beijing’s ill-begotten gains and leave India a diminished power within the region and the wider Indo-Pacific. Its credibility would suffer and New Delhi would run the risk of being tested by its smaller neighbours.

A second pathway is more protracted. Both sides could remain mobilised as happened at Somdurong Chu. Even in such cases, precedents exist for a diplomatic resolution. Both Beijing and New Delhi might see wisdom in adhering to the foundational agreements concluded in 1993 and 1996 — and more limited agreements concluded in 2005, 2012 and 2013 that provide protocols for managing differences along the LAC. But the context of the resolution at Somdurong Chu was vastly different to the situation today. China was a much weaker power, and Deng Xiaoping and Jiang Zemin were more cautious than current Chinese President Xi Jinping.

A third pathway towards resolution is by way of military means. New Delhi could decide to escalate symmetrically by confining a military response to the areas where China entered Indian-claimed territory. This option is likely to be costly and a failure — and more importantly, it does not prevent China from escalating things further. India would also find it difficult to escalate the confrontation to new areas as Chinese forces will now be far more alert. In either case, political will and a readiness to run risks would be essential for the Indian government get a public buy-in.

India and China could also settle for a compromise that involves China withdrawing from specific ridges along the Pangong Tso…

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Business

China Limits Apple Operations as BYD Manufacturing Moves to India and Southeast Asia Amid Trade Frictions | International Business News – The Times of India

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China is restricting the export of high-tech manufacturing equipment and personnel to India and Southeast Asia, aiming to maintain domestic production amid potential US tariffs, impacting companies like Foxconn and BYD.


China Curbs on High-Tech Manufacturing

China is intensifying restrictions on the movement of employees and specialized equipment essential for high-tech manufacturing in India and Southeast Asia. This measure aims to prevent companies from relocating production due to potential tariffs under the incoming US administration. Beijing has urged local governments to restrict technology transfers and export of manufacturing tools as part of this strategy.

Impact on Foxconn and Apple’s Strategy

Foxconn, Apple’s primary assembly partner, is facing challenges in sending staff and receiving equipment in India, which could impact production. Despite these hurdles, current manufacturing operations remain unaffected. The Chinese government insists it treats all nations equally while reinforcing its domestic production to mitigate job losses and retain foreign investments.

Broader Implications for India

Additionally, these restrictions affect electric vehicle and solar panel manufacturers in India, notably BYD and Waaree Energies. Although the measures are not explicitly targeting India, they complicate the business landscape. As foreign companies seek alternatives to China, these developments are likely to reshape manufacturing strategies amidst ongoing geopolitical tensions.

Source : China Restricts Apple, BYD Manufacturing Shifts to India & Southeast Asia Amid Trade Tensions | International Business News – The Times of India

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China

China’s GDP Grows 5% in 2024: Key Insights and Main Factors

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In 2024, China’s GDP grew by 5.0%, meeting its annual target. The fourth quarter saw a 5.4% increase, driven by exports and stimulus measures. The secondary industry grew 5.3%, while the tertiary increased by 5.0%, totaling RMB 134.91 trillion.


China’s GDP grew by 5.0 percent in in 2024, meeting the government’s annual economic target set at the beginning of the year. Fourth-quarter GDP exceeded expectations, rising by 5.4 percent, driven by exports and a flurry of stimulus measures. This article provides a brief overview of the key statistics and the main drivers behind this growth.

According to official data released by the National Bureau of Statistics (NBS) on January 17, 2025, China’s GDP reached RMB 134.91 trillion (US$18.80 trillion) in 2024, reflecting a 5.0 percent year-on-year growth at constant prices. During the 2024 Two Sessions, the government set the 2024 GDP growth target of “around 5 percent”.

By sector, the secondary industry expanded by 5.3 percent year-on-year to RMB 49.21 trillion (US$6.85 trillion), the fastest among the three sectors, while the tertiary industry grew by 5.0 percent, reaching RMB 76.56 trillion (US$10.63 trillion) and the primary industry contributed RMB 9.14 trillion (US$1.31 trillion), growing 3.5 percent.

A more detailed analysis of China’s economic performance in 2024 will be provided later.

(1USD = 7.1785 RMB)

 


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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China

Can science be both open and secure? Nations grapple with tightening research security as China’s dominance grows

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The U.S.-China science agreement renewal narrows collaboration scopes amid security concerns, highlighting tensions. Nations fear espionage, hindering vital international partnerships essential for scientific progress. Openness risks declining.

Amid heightened tensions between the United States and China, the two countries signed a bilateral science and technology agreement on Dec. 13, 2024. The event was billed as a “renewal” of a 45-year-old pact to encourage cooperation, but that may be misleading.

The revised agreement drastically narrows the scope of the original agreement, limits the topics allowed to be jointly studied, closes opportunities for collaboration and inserts a new dispute resolution mechanism.

This shift is in line with growing global concern about research security. Governments are worried about international rivals gaining military or trade advantages or security secrets via cross-border scientific collaborations.

The European Union, Canada, Japan and the United States unveiled sweeping new measures within months of each other to protect sensitive research from foreign interference. But there’s a catch: Too much security could strangle the international collaboration that drives scientific progress.

As a policy analyst and public affairs professor, I research international collaboration in science and technology and its implications for public and foreign policy. I have tracked the increasingly close relationship in science and technology between the U.S. and China. The relationship evolved from one of knowledge transfer to genuine collaboration and competition.

Now, as security provisions change this formerly open relationship, a crucial question emerges: Can nations tighten research security without undermining the very openness that makes science work?

Chinese Premier Deng Xiaoping and American President Jimmy Carter sign the original agreement on cooperation in science and technology in 1979.
Dirck Halstead/Hulton Archive via Getty Images

China’s ascent changes the global landscape

China’s rise in scientific publishing marks a dramatic shift in global research. In 1980, Chinese authors produced less than 2% of research articles included in the Web of Science, a curated database of scholarly output. By my count, they claimed 25% of Web of Science articles by 2023, overtaking the United States and ending its 75-year reign at the top, which had begun in 1948 when it surpassed the United Kingdom.

In 1980, China had no patented inventions. By 2022, Chinese companies led in U.S. patents issued to foreign companies, receiving 40,000 patents compared with fewer than 2,000 for U.K. companies. In the many advanced fields of science and technology, China is at the world frontier, if not in the lead.

Since 2013, China has been the top collaborator in science with the United States. Thousands of Chinese students and scholars have conducted joint research with U.S. counterparts.

Most American policymakers who championed the signing of the 1979 bilateral agreement thought science would liberalize China. Instead, China has used technology to shore up autocratic controls and to build a strong military with an eye toward regional power and global influence.

Leadership in science and technology wins wars and builds successful economies. China’s growing strength, backed by a state-controlled government, is shifting global power. Unlike open societies where research is public and shared, China often keeps its researchers’ work secret while also taking Western technology through hacking, forced technology transfers and industrial espionage. These practices are why many governments are now implementing strict security measures.

Nations respond

The FBI claims China has stolen sensitive technologies and research data to build up its defense capabilities. The China Initiative under the Trump administration sought to root out thieves and spies. The Biden administration did not let up the pressure. The 2022 Chips and Science Act requires the National Science Foundation to establish SECURE – a center to aid universities and small businesses in helping the research community make security-informed decisions. I am working with SECURE to evaluate the effectiveness of its mission.

Other advanced nations are on alert, too. The European Union is advising member states to boost security measures. Japan joined the United States in unveiling sweeping new measures to protect sensitive research from foreign interference and exploitation. European nations increasingly talk about technological sovereignty as a way to protect against exploitation by China. Similarly, Asian nations are wary of China’s intentions when it seeks to cooperate.

Australia has been especially vocal about the threat posed by China’s rise, but others, too, have issued warnings. The Netherlands issued a policy for secure international collaboration. Sweden raised the alarm after a study showed how spies had exploited its universities.

Canada has created the Research Security Centre for public safety and, like the U.S., has established regionally dispersed advisers to provide direct support to universities and researchers. Canada now requires mandatory risk assessment for research partnerships involving sensitive technologies. Similar approaches are underway in Australia and the U.K.

Germany’s 2023 provisions establish compliance units and ethics committees to oversee security-relevant research. They are tasked with advising researchers, mediating disputes and evaluating the ethical and security implications of research projects. The committees emphasize implementing safeguards, controlling access to sensitive data and assessing potential misuse.

Japan’s 2021 policy requires researchers to disclose and regularly update information regarding their affiliations, funding sources – both domestic and international – and potential conflicts of interest. A cross-ministerial R&D management system is unrolling seminars and briefings to educate researchers and institutions on emerging risks and best practices for maintaining research security.

The Organisation for Economic Co-operation and Development keeps a running database with more than 206 research security policy statements issued since 2022.

Emmanuelle Charpentier, left, from France, and Jennifer Doudna, from the U.S., shared the Nobel Prize in chemistry in 2020 for their joint research.
Miguel RiopaI/AFP via Getty Images

Openness waning

Emphasis on security can strangle the international collaboration that drives scientific progress. As much as 25% of all U.S. scientific articles result from international collaboration. Evidence shows that international engagement and openness produce higher-impact research. The most elite scientists work across national borders.

Even more critically, science depends on the free flow of ideas and talent across borders. After the Cold War, scientific advancement accelerated as borders opened. While national research output remained flat in recent years, international collaborations showed significant growth, revealing science’s increasingly global nature.

The challenge for research institutions will be implementing these new requirements without creating a climate of suspicion or isolation. Retrenchment to national borders could slow progress. Some degree of risk is inherent in scientific openness, but we may be coming to the end of a global, collaborative era in science.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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