In Brief
INTERNAL
Xi Jinping calls CCP to win people’s hearts in Hong Kong, Macau and Taiwan
On 15 January, according to S, President Xi directs the CCP to “win the hearts” of people in Hong Kong, Macau and Taiwan through strengthening patriotic and reunification forces amid the DPP’s victory in Taiwan’s elections. Following the elections, Beijing’s Taiwan Affairs Office mentioned that Taiwan Reunification is inevitable. He further mentions the winning of people’s hearts as the biggest politics. He stressed to respect intellectuals outside of party and mentioned the need for overseas Chinese to return and serve the motherland for modernization. (Natalie Wong, “Communist Party must ‘win the hearts’ of people in Hong Kong, Macau and Taiwan: Xi Jinping,” SCMP, 15 January 2024)

China experiments on new Covid strain
On 15 January, according to Firstpost, Doctors from the PLA have been experimenting with the covid strain of “pangolin coronavirus” which has 100 per cent mortality in mice. According to a report published in bioRxiv, SARS-Cov-2 related pangolin coronavirus were invested on some mice and the results indicate potential dangers and its spread on humans. The Institutional Animal care and Use Committee of the Fifth Medical Center, General hospital of the Chinese PLA approved the animal experiment procedure. The study also raises the need for further investigations to understand the virus’s behavior and its potential impact on human health. (“China experimenting with 100% deadly new Covid strain: Report,” Firstpost, 15 January 2024)

Xi struggles to eradicate corruption within the PLA
On 11 January, according to The Economist, China is opaque about the corruption trends and its reasons within the PLA. In the past President Xi has openly stated the corruption’s impact on PLA’s combat skills. According to Bloomberg reports, the purge has led to expulsion of many senior officers in the last six months most of which belonged to the PLA Rocket Force. The report also highlights that XI is unlikely to wage any major offensive war in the coming future. Despite launches of many weapon systems including the aircraft carrier Fujian, Xi might think twice before sending them into ambitious missions. Xi’s military shake up has led to greater emergence of the ani-corruption agency and had also initiated greater political education among the troops. According to the article, such trends is seen as a threat to Xi’s rule. (“Xi Jinping is struggling to stamp out graft in the PLA,” The Economist, 11 January 2024)

EXTERNAL
Xi Jinping’s past speeches at World Economic Forum
On 16 January, according to China Daily, Xi Jinping’s past three speeches at Davos remains important for his upcoming speech at the World Economic forum Annual Meeting 2024. On his 2017 speech Xi mentions the interconnectedness of the global economy and the risks associated with protectionism and its negative impact. He further stressed on China making it more open and accessible for all countries to trade thus facilitating China to integrate with global economy. In the 2021 speech, Xi highlighted the principles of multilateralism to be open and fair fort all and discouraged the idea of certain multilateral groups with selective agenda and stressed on collaborative approach to address global challenges. (“Xi's key statements at past World Economic Forum,” China Daily, 16 January 2024)

SCIENCE & TECHNOLOGY
Chinese court recognizes AI generated image to benefit creators
On 15 January, according to SCMP, Chinese court made a landmark ruling to recognize the copyright of the image generated by AI. This is going to benefit the creators and its industry. In its first judgement, the court ruled that the image generated via text to image software will be considered original and intellectual input of the human creator. The Presiding judge Zhu Ge said last week at a lecture that the AI with legal status is done to encourage creators in this field and further stated that the such issues must be judged on a case-by-case basis. The IP infringement lawsuit was filed by plaintiff named Li, who used US start up StabilityAI’s Stability Diffusion program to build AI image. The court ruled in favor of Li. Many Chinese companies tech firms have ramped up their focus to build business on generative AI. “Xinmei Shen, “Why a Chinese court’s landmark decision recognizing the copyright for an AI-generated image benefits creators in this nascent field,” SCMP, 16 January 2024)

China begins to launch its Tainzhou-7 cargo spacecraft
On 15 January, according to XinhuaNet, China prepares to launch its Tainzhou-7 cargo spacecraft using Long March-7 Y8 carrier rocket at the Wenchang Spacecraft Launch Site in the southern province of Hainan. According to the China Manned Space Agency, the pre-launch function tests and joint tests will be conducted soon, and the timing of the launch will be determined after the completion of the tests. (“China prepares to launch Tianzhou-7 cargo spacecraft,” XinhuaNet, 15 January 2024)

CHINA & TAIWAN
Taiwan-China investment slides down amid strain in political ties
On 15 January, according to SCMP, bilateral investments between China and Taiwan fell to a record low in 2023 due to the political rifts between the two and the shifts in the global supply chains. The Taiwanese Ministry of Economic Affairs said that Mainland China approved investments worth USD 3.04 billion last year. Taiwanese companies are shifting out of China to US allied countries since 2018 due to declining lower costs. Taiwan approved China’s investments in Taiwan up to USD 29.7 billion which was lowest since 2013. According to experts, Change in Taiwanese investors preference is due to US’s pressure on decouple from China. (“Ralph Jennings, “Taiwan-mainland China investment plunges to 22-year low as politics plague ties,” SCMP, 15 January 2024)

Taiwan loses its ally Nauru to China post elections
On 15 January, according to The Straits Times, Taiwan loses its remaining allies Nauru to China just after the country elected its new president and accused Beijing to pressure Nauru. The government of Nauru said that “in the best interests” of Nauru and its people, it was seeking full resumption of diplomatic relations with China and would cut ties with Taiwan.” Taiwanese officials also mentioned that China will continue to sway away handful of countries that are supporting Taiwan. Taiwan’s Presidential Office said Beijing’s move has suppressed the islands’ voices but won’t undermine Taiwan’s will to engage with the world. (“Taiwan loses ally Nauru, accuses China of post-election ploy,” The Straits Times, 15 January 2024)

CHINA & EAST ASIA 
Declining Trade between China and South Korea: US influence
On 16 January, according to the SCMP, Beijing’s trade with South Korea may be impacted due to the strain in ties between China and the US. China approved the shipment of graphite to South Korea as it plays an important role in the manufacturing of batteries, fuel cells, metallurgy, etc. Around 93.7 per cent comes from China thus making it one of the largest trading partners for South Korea. To reduce external dependencies along with growing tensions with US, China has tightened its export of key battery material affecting buyers in Japan, the US, and India. According to the data form the South Korean Ministry of Trade, Industry and Energy (MOTIE), due to the ongoing trade tensions between US and China, South Korea faced trade deficit of USD 18 billion with China in 2023. (Mia Nulimaimaiti, “Why China-South Korea trade drop-off may persist as US influence weighs on chips and tech,” SCMP, 16 January 2024)

CHINA & SOUTHEAST ASIA
China: Southeast Asia adapted to deal with Beijing, says The Economist
On 11 January, The Economist published: “South-East Asia learns how to deal with China,” where the article talked about how the region has managed to maneuver around China. The Chinese Belt and Road Initiative heavily invested in the Southeast Asian region where many of the projects went well and saw fruition a decade ago. But soon the others showcased loss as they were unable to gather results, with the mounting losses and no return the image of BRI also started to tarnish. The article states that though there was heavy Chinese investment there was no apparent influencing power with China over Southeast Asian countries. The region has realized that they cannot say no to China but be strategic about the deals they do form. The current Chinese investment showcases the new priorities of the region where they invite profit-generating investments like Huawei and steel firms. Though BRI's image has been tarnished this has not affected the relationship and Southeast Asia as it still seeks to further build their relationship. (“South-East Asia learns how to deal with China,” The Economist, 11 January 2024)

Malaysia: Singapore to revive Chinese-funded decaying Forest City project with SEZ
On 11 January, Singapore Prime Minister Lee Hsien Loong met with his Malaysian counterpart Anwar Ibrahim aiming to revive the “Forest City” estimated at USD 100 billion by developing it as a special economic zone. The project was built by Chinese real estate giant Country Garden to welcome Chinese buyers. The project built 28,000 units out of which only 9,000 are filled. The provision by the two countries hopes to increase cross-border flow, where they can invite people and businesses to revive the project. The plan would offer a passport-free QR code immigration to entice buyers and investment. The project saw a steep downfall in 2020 when China was hit by the housing bubble crisis, and the fanfare within the project came to existence soon died down. Now lays vacant properties decaying with stray dogs and crocodiles colonizing the area. (Hadi Azmi, “Malaysia seeks to revive China-backed Forest City megaproject – never mind the stray dogs, crocodiles and day drinkers,” South China Morning Post, 13 January 2024)

Philippines: To develop islands over claimed areas of the South China Sea 
On 15 January, Philippines Military Chief General Brawner informed of the country’s plan to establish islands in the South China Sea, within the territories it recognizes as its own. The proposal came in light of the growing tensions between China and the Philippines in the SCS. There are nine islands Philippines claims out of which Thitu island stands to be the most strategic as it is 480 km west of Palawan province. General Brawner said: “Also included in the military’s modernization plans is the acquisition of more ships, radars and aircraft as the Philippines shifts its focus to territorial from internal defence.” (“Philippines to develop islands in South China Sea: Military chief,” The Strait Times, 15 January 2024)

Philippines: Congratulates new Taiwan elect while reaffirming to “One China” policy
On 16 January, the Philippines Department of Foreign Affairs issued a statement from President Ferdinand Marcos where he affirmed the “One China” policy. This comes after President Marcos congratulated the newly elected Dr Lai for his victory in the Taiwanese elections. After this statement Beijing accused the President of gravely violating Chinese policy and that it was meddling in China’s internal affairs. The statement said: “The message of President Marcos congratulating the new president was his way of thanking them for hosting our workers and holding a successful democratic process. Nevertheless, the Philippines reaffirms its ‘one China’ policy.” (“Philippines reaffirms ‘one China’ policy after President Marcos congratulates Taiwan’s Lai,” The Strait Times, 16 January 2024)

CHINA &  AFRICA 
Egypt: China issues a joint statement for peace settlement between Israel and Palestine
On 14 January, Chinese Foreign Minister Wang Yi visited Egypt holding talks with his counterpart Sameh Shoukry and Secretary-general of the League of Arab States Ahmed Aboul Gheit. During the visit, the two countries signed a joint statement for peaceful settlement of the conflict between Israel and Palestine. The issue called for an immediate cease-fire of the conflict, providing humanitarian aid and kickstarting the two-state solution. The statement also highlighted the spillover effects of the war with the grim situation unfolding in the Red Sea. They also called for a larger international peace conference and the formulation of a road map to implement solutions. (Zhou Jin, “Nation's efforts to mediate conflict win recognition,” China Daily, 16 January 2024)

CHINA & THE AMERICAS
US: China should not sour ties with the US over the Taiwan issue 
On 15 January, South China Morning Post reported on the suggestion proposed by a professor at the Chinese University of Hong Kong’s Shenzhen campus Zheng Yongnian. Zheng expressed that the Taiwan issue should not affect the US-China relations. Even though the Taiwan issue looms high, he urged China to build a “new Taiwan narrative” by clearing that it is not about democracy and freedom but about sovereignty and that cannot be discussed. Zheng also believes that the US used Taiwan as a bargaining chip to “contain China.” He said: “We must desensitise and cool down the Taiwan issue, reduce its weightage in Sino-US relations, and not let the issue hold the overall state of Sino-US relations hostage.” He suggested a “Salami Slicing” approach to further the peaceful reunification by attracting youth. (Dewey Sim, “ US-China ties should not be ‘held hostage’ by Taiwan issue, says Chinese political scientist and adviser to Beijing,” South China Morning Post, 15 January 2024)

CHINA & EUROPE 
Switzerland: To upgrade the free trade agreement with China 
On 15 January, Chinese Premier Li Qiang met with the Swiss President Viola Amherd to discuss the upgrade of their free-trade agreement. The Chinese Foreign Minister issued that: “The two sides announced the completion of the joint feasibility study on the upgrading of the China-Sweden FTA and agreed to support the launch of formal upgrading negotiations as soon as possible.” Beijing plans to grant Swiss citizens visa-free provision and in return, Switzerland also plans to ease the visa process for Chinese nationals.  Switzerland was one of the first countries to sign such a deal with China in 2013 which saw a deep in dialogue. Li said: “China is ready to work with Switzerland to implement the important consensus reached by the two heads of state, further consolidate the foundation of political mutual trust and carry forward the cooperative spirit of "equality, innovation and mutual benefit.” (Zhao Ziwen, Liu Zhen “China and Switzerland to revive push to upgrade free-trade agreement,” South China Morning Post, 15 January 2024)