How U.S. ship angers Chinese, raises alarm and worries businesses

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It further soured the mood between the United States and China after an American destroyer (warship) was seen circling the Taiwan Strait on three occasions this week.

The USS Benfold has made several maneuvers in the region and had already angered Beijing as it navigated disputed waters near the Paracel Islands in the South China Sea.

  • The US says it is “reaffirming the right to sail in waters under international jurisdiction” and that “Chinese-imposed restrictions on passage are illegal”;

  • The Chinese army said it had escorted the American destroyer through the strait and announced that it had put the war theater “on high alert” after the event.

Coincidence or not, the maneuver takes place in the week that marks the sixth anniversary of the judgment of the arbitration court in The Hague, which ruled that Chinese claims of “historical right” over the disputed waters were unfounded. Beijing refused to accept the sentence and said the court had no standing to hear the case.

The Chinese reacted to this week’s maneuvers by accusing the US of territorial invasion and calling the US statement “provocation”.

While attending the Aspen Security Forum in Colorado, Chinese Ambassador Qin Gang noted that “political and military ties between Washington and Taiwan are increasingly tight” and blamed the United States for “hollowing out and obscuring the policy of ‘One China'”.

It didn’t help that Nancy Pelosi, Speaker of the House of Representatives and a prominent member of the Democratic Party, confirmed a trip to Taipei in August, in what would be the first such visit in more than 25 years. The Chinese interpret the announcement as a signal of political support for a territory they consider a rebel province and are threatening to take “strong measures to firmly defend their sovereignty”.

Henry Kissinger, former US Secretary of State, reacted to the news. Credited as one of the key figures in the resumption of diplomatic ties between the two countries, he said he “recognises the need to prevent China from achieving hegemony”.

“This is not something that can be achieved by endless confrontation,” he mused. He also warned that the current path could lead to a “catastrophe comparable to World War I.”

why it matters: as I have already written here, China would only take military action against Taiwan in two cases: (1) a unilateral declaration of independence; (2) if the Chinese national leadership (currently Xi Jinping) feels weakened domestically.

While none of these scenarios seem obvious at the moment, American decisions in a year when Xi is seeking a third term could spur Beijing to show strength.

  • With the invasion of Ukraine by the Russians, the climate in the region took a toll and several American analysts now accuse China of preparing for a similar strategy with Taiwan.

  • The president of the European Union Chamber of Commerce in China, Joerg Wuttke, told the Financial Times that several multinationals are commissioning studies that assess the impact of a military operation against the island.

what also matters

China is reportedly trying to prevent a report on human rights abuses in Xinjiang province from being published. The information was released by Reuters. The document was produced by the United Nations High Commissioner for Human Rights (OHCHR) and summarizes the observations of the department’s head, Michelle Bachelet, after visiting the region in May.

The Chinese delegation asks that the report not be released, citing “grave concern” about the content. The Chinese seek out allied diplomats in Geneva and collect signatures in support of the request, according to Reuters.

The agency reports that China claims the document could “undermine the credibility and undermine the OHCHR’s ability to cooperate with other member states”.

You read here last month that the topic is the source of discussions on human rights in Geneva. While Western countries insist on Chinese accountability for what they call “cultural genocide”, several delegations have spoken out urging foreign forces to refrain from interfering in Chinese domestic politics.

Beijing will no longer resort to large-scale subsidies to try to save its estimated 2022 growth target. The announcement was made by Chinese Premier Li Keqiang to executives of several companies at the World Economic Forum.

  • “We are not going to resort to massive stimulus or excessive printing of money to achieve any high growth targets,” he said.

  • Concerning the fears regarding the impact of the Covid zero policy on the economy, the prime minister said that the country will “try its best to achieve good results this year.”

The speech was seen as a sign that Chinese macroeconomic policies in the second half of the year will be more aimed at containing investor anxiety and fears than necessarily activating the domestic market artificially.

He stressed that the government hopes to adjust control measures to the coronavirus, “improving access to visas and increasing the number of international flights.”

Li also promised that foreign university students will be able to return to China to complete their studies. It was the first blunt statement on the topic since thousands of students were stranded outside the country after the borders were closed in March 2020.

Keep an eye

China presented at the UN a set of proposals to face the world food crisis, this Monday (18). Developed by the so-called Group of Friends of the Global Development Initiative (GDI), the text calls for agricultural supply chains to remain functioning and calls on UN member states to ensure that trade in food, fuel, fertilizers and other agricultural inputs not be affected by sanctions or “discriminatory regime”.

why it matters: The document was interpreted by some countries as a nod to Russia, which has struggled to sell fertilizer and wheat production. The Americans reacted strongly.

  • The head of the US Agency for International Development (USAID), Samantha Power, criticized China for contributing “only US$ 3 million” to the UN food program in 2022 (the US donated US$ 2.7 billion until the time).

  • Chinese Foreign Ministry spokesman Zhao Lijan responded by saying that “as a developing country, China has no obligation” to donate to the United Nations program.

to go deep

  • The United States almost supported Mao Zedong in the civil war that ended in 1949 with the victory of the Communists in China. SupChina looks back at the negotiations and conjectures what might have happened if they had worked. (porous paywall, in English)
  • Started on Wednesday (20th) and runs until the 28th, the Chinese Audiovisual Exhibition. Organized by the Chinese Embassy in partnership with CCBB, the event has films, series and animes being shown in Rio, São Paulo and Brasília, in addition to taichi workshops, craft lantern making and a theater workshop. Information here. (free, in Portuguese)
  • Observa China meets next Saturday (23) at 10 am to discuss the film “A Sun”, by Taiwanese director Chung Mong-hong. The event is mediated by Paulo Menechelli, one of the main Brazilian scholars of Chinese cinema. (free, in Portuguese)

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