China
Japan walks on a tightrope with its China policy
Author: Rumi Aoyama, Waseda University
Over the past decade, Japan has actively promoted cooperation among Quad countries under the ‘Free and Open Indo-Pacific’ framework to counter China’s rising influence. It has also played a leading role in promoting high-quality trade rules through concluding the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Japan–EU Economic Partnership Agreement and the Regional Comprehensive Economic Partnership. Importantly, Japan has maintained a delicate balance to ensure security tensions do not hold back economic cooperation.
Prime Minister Yoshihide Suga’s visit to the United States in April demonstrated the success of Japan’s balanced diplomacy. Both countries sent strong messages of common values and unified action, addressing ‘the importance of peace and stability’ across the Taiwan Strait. They also highlighted ‘serious concerns’ over human rights violations in Hong Kong and Xinjiang and emphasised their resolve for the security and openness of 5G networks.
The joint statement also reflected Suga’s intention to promote a peaceful resolution and avoid provoking China blindly, in addition to a firm approach to contingency planning regarding the Taiwan Strait.
The success of Japan’s China policy so far depends largely on two factors: Japan’s prudence in not overly provoking China and China’s tolerance of Japan’s hedging policy. After Suga’s trip, stable relations with China may no longer be a given, as Japan will have to develop concrete policies later in 2021 regarding its commitment to the US economic and security strategy in Asia.
Japan’s economic security policies are already in motion. Tokyo has introduced regulations to phase out Huawei and ZTE products in equipment procurement by government agencies and implemented subsidies to shift manufacturing out of China. Japan and the United States agreed to invest US$4.5 billion in the joint development of 6G telecommunications, with the aim of commercialising it in the 2030s, as well as cooperate in the supply chain for semiconductors and other strategically important products. The Suga administration is also taking a leadership role in facilitating a supply chain between India, Australia and Japan that does not rely on China.
But security cooperation can be much more complicated. Based on Japan’s current security legislation, if an emergency occurs in the Taiwan Strait, Japan’s Self-Defense Forces can provide logistic support or exercise a limited right of collective self-defence before Japanese territory is invaded. Akira Amari, a key figure behind the second Abe administration in charge of economic and trade policy, called for readiness to cooperate with the United States in exercising its right to collective self-defence.
While the Japanese government is still considering possible scenarios, these discussions may spur further debate on the role of Japan as a ‘shield’ and the United States as a ‘spear’ in US–Japan security relations. The possibility of deploying land-based conventional intermediate-range missiles in Japan to complement the US Pacific Deterrence Initiative raises concerns about it being drawn more deeply into tensions between the United States and China.
Japan’s economy is increasingly dependent on China, which is now Japan’s largest export destination, replacing the United States. In fiscal year 2020, China accounted for 22.9 per cent of Japan’s total exports, exceeding 20 per cent for the first time. But with 74 per cent of respondents in a poll conducted by The Nikkei in favour of Japan’s intervention in the Taiwan Strait, the Japanese government is more likely to expand its role in deterring China.
China is now adopting a wait-and-see approach. On the one hand, China is sensitive about cooperation among Quad nations and harshly denounced it as an ‘Asian NATO’. For China, Japan’s commitment to Taiwan and the deployment of missiles are alarming and unacceptable. Chinese Foreign Minister Wang Yi warned as much to Japanese Foreign Minister Toshimitsu Motegi over the phone.
On the other hand, with the hope of driving a wedge between Japan and the United States, China is still refraining from launching a national propaganda campaign against Japan. Most importantly, Japan has a pivotal position in China’s strategy of confrontation with the United States. Just as the United States is pursuing a targeted decoupling strategy, China is determined to establish a self-centred supply chain in Asia and among Belt and Road Initiative…
Business
China Limits Apple Operations as BYD Manufacturing Moves to India and Southeast Asia Amid Trade Frictions | International Business News – The Times of India
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.
China
China’s GDP Grows 5% in 2024: Key Insights and Main Factors
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 China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
China
Can science be both open and secure? Nations grapple with tightening research security as China’s dominance grows
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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