China
Clarifying US commitments to Taiwan
Authors: Samuel Hui and Wang Kai-Chun, Taipei
On 7 July White House Asia tsar Kurt Campbell stated ‘we support a strong unofficial relationship with Taiwan; we do not support Taiwan independence’, drawing an even clearer line on the US position regarding Taiwan. This came after he affirmed in June that the Biden administration is confident in the current framework that governs relations between mainland China, Taiwan and the United States.
At the event in June, Campbell said that the administration ‘still believes the frameworks that have been developed over the last several decades between the United States, Taiwan, and China give us the best framework forward’. He further noted that the administration ‘has [already] emphasised the downsides of adjusting that framework’.
Avril Haines, the US Director of National Intelligence, also viewed Taiwan’s move towards de jure independence as a potential challenge. She argued that ‘already Taiwan is hardening, to some extent, toward independence as they’re watching, essentially, what happened in Hong Kong’. Haines said that such developments would ‘solidify Chinese perceptions that the US is bent on constraining China’s rise if Washington moves towards strategic clarity’.
The concerns described by Haines resonate with critics of US strategic clarity. There are fears that an ‘unconditional promise of US support’ will embolden pro-independence factions in Taiwan, many of whom want to unilaterally change the status quo. Independence fundamentalists are often dismissive of the threat posed by China and overly confident in US support. So the adoption of strategic clarity may limit Washington’s choices in the event of emboldened Taiwanese actions relating to China.
Strategic clarity in the form of unconditional support for Taiwan could tempt radicals towards de jure independence, risking full scale confrontation between the United States and China. Beijing could use the situation to rally the Chinese population against both Taipei and Washington under the banner of Chinese nationalism and increase risks of Chinese challenges to the regional status quo. For Washington, strategic clarity would forces it to be reactive — leaving US policymakers guessing where and when a confrontation might occur in the Taiwan Strait.
Aside from affirming the benefits of maintaining ambiguity, Campbell noted the fact that the United States is entering uncharted territories regarding a ‘new complex coexisting paradigm’ with China where competition and cooperation go hand in hand. Despite Biden’s characterisation of US–China relations as a battle between democracy and autocracy, high-level dialogues have continued.
Former US secretary of state John Kerry still made his trip to China, and Biden still virtually met Chinese President Xi Jinping at the recent US-led climate conference. To foster stability in this unprecedented ‘frenemy’ relationship, Washington figured some existing conflicts, like Afghanistan, must be settled, and some controversies, like Taiwan, should be stabilised.
From a Taiwanese perspective, it’s easy to interpret Washington’s China policy shifts as signs of support for Taiwan. Biden has maintained a tough stance on China, and Biden officials describe relations with Taiwan as ‘rock-solid’. But high ranking officials from China and the United States have started to communicate more frequently than during the Trump era.
On the one hand, Washington’s competitive posture against China has resulted in more hardline statements. But on the other hand, increasing Chinese aggression and the deteriorating power balance between Taiwan and China in the context of a shrinking US military budget also requires US leadership to restore interactions with Beijing and minimise miscommunications.
As the US–China relationship remains unpredictable, Washington’s attention will increasingly turn to Taiwan. But such focus does not necessarily imply unconditional support for Taipei. Such attention might instead be a way of compensating for a lack of confidence in US military deterrence without significantly provoking the Chinese, a policy which calls for a more cautious approach to the island deemed ‘the most dangerous place on earth’.
US support might be another part of managing the tilting power balance between Beijing and Washington — not as a political gesture or blind pass for Taiwanese actions. Washington supports Taiwan insofar as failing to do so threatens US interests — not just because it is a proud democratic…
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
| 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.
- Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
- China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
- China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
- How a scandal over sanitary pads is shaping feminist activism in China
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