Daily Briefs


Photo : Global Times

23 September 2021, Thursday

China, Taiwan and the Pacific Trade Pact

China’s new bitcoin revelation; China - EU to hold the 11th strategic dialogue

IN FOCUS
By Juan Mary Joseph 

China, Taiwan and the Pacific Trade Pact
On 24 September, Reuters reported Taiwan's Foreign Ministry said that China, an "arch criminal" intent on bullying Taiwan has "no right to speak" about Taiwan's bid to join the trans-Pacific trade pact. The statement from the Taiwanese government comes after an escalating war of words between the former and China over the recent decisions.

Divisions over the CPTPP 
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement (FTA) initially signed in 2018 between Australia, Canada, Japan, Mexico and Singapore in Santiago, Chile. Brunei, Chile, Malaysia, New Zealand, Peru and Vietnam later joined the bloc. The CPTPP is originally a reconfigured grouping of the Trans-Pacific Partnership (TPP), a proposed trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United States signed in 2016. Though the pact was created by the US to counter China's influence, the then newly elected US president Donald Trump withdrew from the TPP in 2017. As a result, the agreement could not be ratified and hence did not enter into force. The CPTPP, later on incorporated most provisions of the TPP, with promises of trade and investment liberalization and pledged to eliminate or reduce 95% of tariffs. 

On 16 September, China formally submitted a request to join the CPTPP after President Xi Jinping announced at the Asia-Pacific Economic Cooperation Summit in 2020 that China will “favourably consider joining” the pact. While the application has been submitted, it is not yet clear if China’s request will raise the intended outcome. However, less than a week later on 22 September, Taiwan formally applied to join the bloc after a set of informal discussions with the bloc's existing members. Taiwanese cabinet spokesman Lo Ping-Cheng said in a statement that "applying to join the CPTPP is an important economic and trade policy that the government has worked hard to promote for a long time". 
The moves from China and Taiwan have however led the existing members of the bloc divided on their options. An enraged China said in a statement from the Foreign Ministry that it opposed Taiwan from "entering into any official treaty or organisation." The Chinese statement comes after continued escalations between both countries, including the recent entry of Chinese aircrafts into the Taiwanese airspace and China’s diplomatic spat with Lithuania. Taiwan is excluded from many international bodies due to China's insistence of the “One China” policy.

On 23 September, Vietnam’s Foreign Ministry Spokeswoman Le Thi Thu Hang at a regular briefing that it is willing to share its experience and information with China on the CPTPP, and referred to it as "an open free trade agreement." Japan has however welcomed Taiwan's application, citing shared values on democratic values and freedom. On the other hand, it has expressed a cautioned reaction to China’s bid, owing to the strict rules that the CPTPP has with respect to state-owned enterprises. Japan’s views are valid as the CPTPP, is described as the “gold standard in trade agreements” and China’s proposed entry is expected to wreck the existing ambitious targets of the bloc. 

References
“Vietnam willing to share information with China for its bid to join CPTPP, Reuters, 23 September 2021”

“Japan PM contenders welcome Taiwan's trade pact bid but divided on Yasukuni shrine, Reuters, 23 September 2021”

“Japan welcomes Taiwan bid to join trade pact, citing shared values, Reuters, 24 September 2021”

“Taiwan applies to join Pacific trade pact week after China, Reuters, 22 September 2021”

“Taiwan blasts 'arch criminal' China for Pacific trade pact threats, Reuters, 24 September 2021”

IN BRIEF
by Avishka Ashok and Keerthana Nambiar 

INTERNAL
Vice Premier Sun Chunlan urges cities to take up epidemic-prevention measures 
On 23 September, the Chinese Vice Premier Sun Chunlan urged the people and the authorities to follow multiple epidemic-prevention measures after the latest rise in cluster cases in the Fujian Province. The instructions were given to the authorities while she was on an inspection trip to Xiamen, Putian, Quanzhou and Zhangzhou cities in Fujian province. Amongst the various measures suggested were nucleic acid testing, epidemiological investigations, quarantine, community lockdowns and disinfection in major outbreaks. She emphasized that it is crucial for the authorities to control the outbreak at this time. (Chinese vice premier urges efforts to curb COVID-19 clusters - Xinhua (news.cn), Xinhua Net, 24 September 2021)

REGIONAL
China’s 20th airstrike interference in Taiwan
On 23 September, China sent two air force incursions into Taiwan, expressing its disapproval towards Taipei’s bid to join the CPTPP trade pact. In the past, Beijing has used airstrikes as a form of expressing its anger and challenging the government. People’s Liberation Army sends 24 warplanes into Taiwan’s air identification space. Taiwan’s defense ministry declared that this is the 20th time China is has interfered in their airspace and has been the largest sortie since June. (China Sends Fighter Jets to Show Anger at Taiwan Over Trade Deal, Bloomberg, 24 September 2021)

ECONOMY
China’s new bitcoin revelation
On 24 September, China’s top regulators intensified a blanket ban on crypto transactions and mining due to which bitcoin and other major coins and blockchain-related stocks have been affected. The People’s Bank of China (PBOC) has barred payment companies, financial institutions, and internet firms from trading via cryptocurrency nationally. The PBOC stated that the Chinese government has made the decision to clamp down on “virtual currency speculations and related financial activities and misbehavior in order to safeguard people's properties and maintain economic, financial and social order". (China's top regulators ban crypto trading and mining, bitcoin stumbles, Reuters, 24 September 2021)

INTERNATIONAL
China - EU to hold the 11th strategic dialogue
On 24 September, South China Morning Post reported on the official talks between the two diplomats from the European Union and China expected to take place on 28 September. The “11th” strategic dialogue between Brussels and Beijing is after the geopolitical tensions have swirled in and escalated at a quick pace. The annual dialogue is after the complications that have reeled in regarding the nascent AUKUS pact and Lithuania dispute. Josep Borrel, EU’s top diplomat is expected to lead the talk along with his Chinese counterpart, Chinese Foreign Minister Wang Yi by video link. Chinese Vice-Premier Han Zheng will meet European Commission, Vice-President Frans Timmermans.  (China and EU to hold talks on Tuesday as sanctions, Aukus and Lithuania throw up complications, South China Morning Post, 24 September 2021)

China lists 100 instances on US interferences in Hong Kong
On 24 September, China announced a list of more than 100 instances of what it claims to be US interference in Hong Kong affairs. The foreign ministry posted the list on the website detailing all the 100 instances of U.S. interferences since 2019 and also including the Hong Kong Autonomy Act in 2020 under the Trump administration. (China draws up list of 100 instances of U.S. "interference" in Hong Kong, Reuters, 24 September 2021)

Speaker of House of Representatives of Bosnia and Herzegovina extends support to one-China policy
On 24 September, Xinhua Net reported that the speaker of the House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina Denis Zvizdic said that the country completely respects China’s sovereignty and territorial integrity and accepts the one-China Principle. The statement was made while Zvizdic met Chinese Ambassador Ji Ping on 22 September. He also appreciated China’s support during the pandemic and said: “China was one of the first countries to provide assistance to BiH after the outbreak of COVID-19, for which Bosnia is deeply grateful.” (BiH firmly upholds one-China principle: speaker of House of Representatives - Xinhua (news.cn), Xinhua Net, 24 September 2021)

President Xi Jinping extends support and appreciation to Vietnam on the occasion of China’s National Day
On 24 September, the Chinese President Xi Jinping said that it is essential for China and Vietnam to safeguard the security of their respective communist parties and of the socialist systems. The comments were made while President Xi was in a telephonic meeting with the General Secreatry of the Communist Party of Vietnam on the occasion of China’s National Day. President Xi also observed that the two countries had maintained good relations and had strengthened their bilateral relations in the past year. He said: “Facing the complicated and combined impacts of global changes and a pandemic both unseen in a century, China and Vietnam share many common interests and concerns.” (Xi says safeguarding Communist governance vital common interest of China, Vietnam - Xinhua (news.cn), Xinhua Net, 24 September 2021)

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