China
Why a ‘Nixon moment’ in India–China relations is unlikely
Author: Raj Verma, Huaqiao University
India–China relations have hit a nadir after the recent clash between Indian and Chinese troops in the Galwan Valley. Although disengagement and de-escalation is underway, tensions remain high. Some argue that there has been a Chinese and Indian leadership failure in ensuring amicable ties, pointing to ‘a historical failure on both countries’ parts to initiate a Nixonian moment in their relationship’, a reference to the former US president’s promoting pragmatic coexistence with China.
But calling for a ‘Nixon-in-China moment’ in India–China relations implies a set of false analogies in the relationships between India, China and the United States today, and those between the United States, China and the Soviet Union that prevailed when Richard Nixon landed in Beijing in 1972.
The dynamics within the US–USSR–China triad and the US–China–India triad are different. During the Cold War, the United States was the most dominant economic and military power globally and in Asia, followed by the Soviet Union and China. The United States and the Soviet Union were also on opposing sides during the Cold War.
After its establishment in 1949, the People’s Republic of China espoused Marxism-Leninism and consolidated an alliance with the Soviet Union. But bilateral relations hit rock bottom in the 1960s especially after the clash along their disputed border in 1969. It is in this context that the United States (the leading power) and China (the weakest power in the triad) established relations aimed at countering their common enemy, the Soviet Union.
Today, the United States is the hegemon, albeit in decline, and India is the weakest power in a US–China–India triad. China–US relations have gone from bad to worse, especially through the COVID-19 pandemic. On the other hand, India–US relations have blossomed in the 21st century. Political, diplomatic, economic, security and military ties between the world’s two largest democracies have strengthened and deepened.
For its part, India is wary of China’s assertive foreign policy, including attempts to curtail India’s rise as a great power. Beijing wants New Delhi to be enmeshed in South Asian affairs so that India’s political, diplomatic and military resources are not utilised to challenge China’s rise as the predominant power in Asia.
Unlike the India–China and China–USSR dyads, the United States and China are not neighbours. In 1969, at the height of the China–Soviet split the two countries had a seven-month border conflict, which ended in a ceasefire with the status quo ante restored. But the border dispute was not resolved and rivalry between the two countries was extended to countries in Asia, Africa and the Middle East. Bilateral relations only improved, slowly and steadily, in the 1980s.
India fought a limited border war with China in 1962, where the former was defeated and China captured Aksai Chin, a piece of territory claimed by India. The 1962 war exacerbated mistrust and led to the breakup of diplomatic ties between the two countries until 1976. The two countries also had border skirmishes at Nathu La, Sikkim, in 1967, and at Tulung La, Arunachal Pradesh, in 1975. In the 21st century, both have blamed each other for border transgressions along the un-demarcated Line of Actual Control (LAC). Tensions rose again in 2013 and 2014 when India blamed China for encroaching on Indian territory, denied by China. The matter was resolved when both sides withdrew troops.
In 2017, the two countries had a 72-day military standoff in Doklam at the China–Bhutan–India trijunction. There were fears of this spilling over between the two nuclear-armed neighbours. The standoff resolved after both sides withdrew troops and China agreed not to build a road in Doklam.
One explanation for recurrent border transgressions is geopolitical, in attempting to put pressure on India to kowtow to China and show India its place in the Asian hierarchical order. Another is domestic factors, such as Chinese expansionism and rising nationalism, which makes it difficult for leaders to compromise on territorial sovereignty. China is also anxious about India’s construction of roads, bridges, tunnels and other infrastructure along the disputed LAC. China is especially concerned over the construction of the 255-kilometre Darbuk-Shyokh-Daulat Beg Oldie (DS-DBO) all-weather road due to its tactical advantage along the LAC.
Government leadership in both countries is essential for strengthening India-China relations and to…
China
China’s November 2024 Economy: Navigating Mixed Signals and Ongoing Challenges
In November 2024, China’s economy exhibited mixed results: industrial production rose by 5.4%, while retail sales grew only 3%, below forecasts. Fixed asset investment also faltered. Policymakers are anticipated to introduce measures to stimulate domestic demand and combat deflation.
China’s economy showed mixed performance in November 2024, with industrial production and exports showing resilience, while retail sales and fixed asset investment underperformed, amid ongoing challenges in the property sector. Policymakers are expected to implement targeted fiscal and monetary measures to boost domestic demand and address deflationary pressures.
The National Bureau of Statistics (NBS) has released China’s economy data for November 2024, revealing a mixed performance across key indicators. Retail sales grew by 3 percent year-on-year, a significant slowdown from October’s 4.8 percent growth and well below the 4.6 percent forecast. Industrial production, however, showed resilience, rising by 5.4 percent and exceeding expectations of 5.3 percent growth.
The property sector continued to drag on the broader economy, with real estate investment contracting by 10.4 percent for the January-to-November period, further highlighting the challenges in stabilizing the sector. Fixed asset investment also fell short of expectations, growing by 3.3 percent year-to-date, down from 3.4 percent in October.
In November, China’s industrial value added (IVA) grew by 5.4 percent year-on-year (YoY), slightly accelerating from the 5.3 percent recorded in October. This modest improvement reflects continued recovery in key industries, supported by recent stimulus measures aimed at stabilizing the economy.
The manufacturing sector led the growth, expanding by 6.0 percent YoY, while the power, heat, gas, and water production and supply sector grew by 1.6 percent. The mining industry posted a 4.2 percent YoY increase. Notably, advanced industries outpaced overall growth, with equipment manufacturing and high-tech manufacturing rising by 7.6 percent and 7.8 percent YoY, respectively, underscoring the resilience of China’s innovation-driven sectors.
Key product categories showed robust output gains in November:
From January to November, IVA increased by 5.8 percent YoY, maintaining steady growth over the year despite headwinds from a slowing property market and external uncertainties.
| 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 China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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China
Ukraine war: 10% of Chinese people are willing to boycott Russian goods over invasion – new study
Since Russia’s 2022 invasion of Ukraine, some Chinese citizens express dissent through potential boycotts of Russian goods, reflecting a complex relationship despite government support for Russia.
Since Russia invaded Ukraine in 2022, the Chinese government has been criticised for its refusal to condemn the war. In 2024, the economic and diplomatic relationship between the two nations appears stronger than ever.
Because of strict censorship and repression imposed by the Chinese Communist Party (CCP), it is difficult to know the extent to which the general public shares their government’s support of Putin’s regime. But a newly published study I carried out with colleagues found that more than 10% of Chinese people surveyed were willing to boycott Russian goods over the war in Ukraine.
This is a surprisingly large figure, especially since existing surveys indicate that Chinese people hold a broadly positive view of their neighbour. We used a representative sample of 3,029 Chinese citizens for this research, to dig into public attitudes to Russia. The survey was done in 2022 after the Ukraine invasion.
We were aware that due to widespread censorship, our participants might not be willing to give honest answers to questions about Russia’s actions in Ukraine. They might also not feel safe to do that in a regime where disagreement with the CCP’s position is often met with harsh punishment. This is why we asked them to tell us if they would be willing to boycott Russian products currently sold in China.
We felt this question was a good indicator of how much the participants disapproved of Russian foreign policy in Ukraine. More importantly, we were also curious to find out whether Chinese citizens would be willing to take direct political action to punish Russia economically for its aggressive behaviour.
In our study, we split respondents into the three different ideological groups in China: “liberals”, who support the free market and oppose authoritarianism; “the new left”, who sympathise with the policies pursued in China under Mao Zedong; and “neo-authoritarians”, who believe the Russian-Ukrainian conflict is an extension of the rivalry between authoritarian China and the liberal United States. These groups were based on the main political beliefs in China.
We found that liberals were most likely to say they were willing to boycott Russian products. Liberals believe that China should work with, rather than against, western democracies. They also place a high value on human rights and democratic freedoms. Because of their beliefs, they are likely to think that Russia’s actions against Ukraine were unprovoked, aggressive and disproportional.
Chinese and Russian economic and diplomatic relations seem closer than ever in 2024.
American Photo Archive/Alamy
The new left and neo-authoritarians we surveyed were more supportive of Russian products. The new left see Russia as a close ally and believe that Nato’s expansion in eastern Europe was a form of aggression. Neo-authoritarians, on the other hand, believe that supporting Russia, an allied autocracy, is in China’s best interest.
Boycotting Russian goods
Asking Chinese participants if they are willing to boycott Russian products might seem like a simple matter of consumer preferences. However, our study reveals a great deal about the way in which regular citizens can express controversial political beliefs in a repressive authoritarian regime.
Boycotting products of certain companies has long been studied in the west as a form of unconventional political action that helps people express their beliefs. However, in the west, boycotting certain products is simply one of many ways people are able to take political action. In a country such as China, boycotting a Russian product might often be the only safe way to express disagreement with the country’s actions.
This is because citizens do not have to tell others they chose not to buy a product, and their actions are unlikely to attract the attention of the authorities.
Since Russian goods are readily available to Chinese consumers and China is encouraging more Russian exports to reach its market, the Russian economy could be significantly affected by an organised boycott campaign in China. The considerable level of support for a boycott expressed by some of our participants, as well as previous acts of solidarity with Ukraine in China, suggest that such a campaign could already be taking place in the country.
This could harm Russia because it regularly exports a number of different products such as meat, chocolate, tea and wine to China. These goods made up 5.1% of China’s total imports in 2023 – and this figure is likely to increase if Russia becomes more isolated from the west, and therefore more dependent on China for its trade.
While 5.1% of the Chinese market might seem like a low figure, China is home to over 1.4 billion people. In this context, even a small boycott could result in a serious loss to Russian companies.
Our research shows that Chinese citizens don’t always support the official position of the communist party. It also shows that many people there will express even the most unpopular political opinions – if they can find a safe way to do it.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
China
Australia Can Enhance China’s Credibility in the CPTPP
In early 2024, China sought to join the CPTPP, potentially offering modest economic benefits to Australia. Key reforms include limiting state-owned enterprise subsidies, enhancing data flows, and banning forced labor.
China’s Interest in the CPTPP
In early 2024, China expressed a keen interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement involving eleven Pacific Rim economies and the United Kingdom. This move is anticipated to yield modest economic benefits for Australia. However, it also opens the door for vital reforms in areas such as the control of subsidies for state-owned enterprises, allowing free cross-border data flows, and prohibiting forced labor practices.
Economic Implications for Australia
A May 2024 report from the Australian Productivity Commission indicated that China’s accession to the CPTPP might raise Australia’s GDP by only 0.01%. This modest gain isn’t surprising, given Australia’s existing preferential trade arrangement with China through the Regional Comprehensive Economic Partnership. Nonetheless, the CPTPP encompasses more than just tariff reductions, focusing on broader trade principles and standards.
Reform Commitments Required from China
For China to become a CPTPP member, it must demonstrate adherence to high-standard rules initially developed with the country in mind. This commitment will help alleviate concerns among member nations like Japan and Canada, particularly regarding China’s economic practices and geopolitical tensions, such as those with Taiwan. Membership would necessitate reforms, including limiting SOE subsidies, enabling freer data flows, and banning forced labor, with significant penalties for non-compliance.
Source : Australia can encourage China’s credibility in the CPTPP
- China’s November 2024 Economy: Navigating Mixed Signals and Ongoing Challenges
- Ukraine war: 10% of Chinese people are willing to boycott Russian goods over invasion – new study
- Australia Can Enhance China’s Credibility in the CPTPP
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- China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
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