INTERNAL
The military budget proposed in the NPC meeting
On 05 March, an article in the South China Morning Post, titled, “China’s ‘two sessions’ 2024: defence budget signals military readiness, not imminent war, experts say,” by Amber Wang looked into the defence budget proposed in the 2024 “two sessions”. A 7.3 per cent growth is estimated for the military budget in 2024. The Ministry of Finance released the budget, where Premier Li Qiang addressed the 2024 gathering. Li highlighted the need to ramp up war readiness by expanding the reserve forces and stressing military loyalty.  Chinese military’s budget is the second largest in the world and is reckoned to grow by 1.67 trillion yuan as the tension in the Taiwan Strait and South China Sea increases. A retired colonel from the People’s Liberation Army (PLA) Yue Gang said: “The growth of China’s military expenditure is consistent with the growth of GDP,” and that increased tensions in the South China Sea and Taiwan Strait: “will not shake” Beijing’s established military policy.” Another PLA expert Fu Qianshao also iterated that the increase in the military capabilities is not because of the heightened tensions in the region but is by their growth trajectory and year-to-year plan. (“China’s ‘two sessions’ 2024: defence budget signals military readiness, not imminent war, experts say,” South China Morning Post, 05 March 2024)

ENERGY/ENVIRONMENT
China sets strict deadlines for its energy intensity goals by 2025
On 05 March, China sets up stringent energy intensity targets for 2024 as it failed to meet its 2023 goals, thus making it challenging to keep up with its five-year plans ending in 2025. According to a report published by the National Development and Reform Commission (NDRC) on the first day of the National People’s Congress meeting, China aims to cut its energy intensity by 2.5 per cent in 2024, which is 2 per cent higher than in 2023. It reported that its energy intensity output cuts missed by 0.5 per cent in 2023 and also missed the carbon emissions target per unit of GDP. The NDRC cited rapid industrial and civilian energy consumption growth as the main reasons for the shortfall in the targets achieved. According to the Helsinki-based Centre for Research on Energy and Clean Air and the US group Global Energy Monitor, to meet its targets, China would need to cut energy intensity by 6 per cent and carbon intensity by 7 per cent in both 2024 and 2025. Despite promising to work towards the target, the government would continue to support coal power and build additional coal reserves for its energy system. (“China sets tougher energy efficiency goal after falling behind on 2025 targets,” The Straits Times, 05 March 2024)

SCIENCE & TECHNOLOGY
Secret behind the rise of e-commerce giant Temu, Financial Times
On 06 March, according to an editorial in the Financial Times, titled “The mysterious rise of the Chinese e-commerce giant behind Temu,” by Dan McCrum, Temu’s parent company wants to build a faster and cheaper version of Amazon, which has led to its growth from China to 49 countries worldwide in less than two years. Temu uses blanket advertising to attract Western consumers to its app and delivers its products for free directly from China, thus eliminating the intermediaries and ensuring low prices. It is valued at around USD 162 billion and is closing in on the world’s biggest e-commerce group, Alibaba. Compared to Amazon, JD.com, and Alibaba, PDD is very small in presence, especially logistics. Outside China, both eBay and US discount chain Five Below said in 2023 that Temu’s emergence did not impact their businesses. (Dan McCrum, “The mysterious rise of the Chinese e-commerce giant behind Temu,” Financial Times, 06 March 2024)

CHINA & SOUTHEAST ASIA
Philippines and the US to hold annual military drills in April
On 05 March, The Straits Times reported that the Philippines and the US are planning to conduct their annual drills in April at a strategic location. The location is the Philippines Islands that face the South China Sea and Taiwan. The exercise called the Balikatana, “Shoulder to Shoulder” is set to be shifted from the countryside camp. This moves according to The Straits Times, comes in line with the Philippines changed foreign policy of focusing more on external defence. The exercise is set to host a larger team with the training focusing on cyber-security training and “information warfare.” Philippine army colonel Michael Logico on the location of the drills said: “It is natural for us to exercise in those areas because if it’s part of Philippine territory, it is where we wave our flag; these are the areas where we defend.” (“Philippines, US to hold military drills in islands facing South China Sea, Taiwan,” The Straits Times, 05 March 2024)

CHINA & EUROPE
Chinese envoy sent to Ukraine for an immediate political settlement
On 05 March, China sent its special envoy for Eurasian Affairs, Li Hui, to Kyiv for a political settlement to the ongoing war. The envoy began his trip to Russia on 02 March and will proceed further to Poland, Ukraine, Germany, France, and Belgium. This is his 2nd such trip to Europe after Russia invaded Ukraine. There is scepticism against China’s 12-point peace proposal issued in February 2023. In response to Ukraine’s criticism of fewer meetings, Li said that communications with Ukraine are unimpeded. Li told his Russian counterpart, Deputy Foreign Minister Mikhail Galuzin, that China is committed to promoting peace talks, mediation, and building consensus between the two sides. Li, during his first trip to Kyiv in May 2023, said that China will help Ukraine “within its ability.” (“China spurns Ukraine diplomats at home, undermining peace push,” The Straits Times, 05 March 2024)

Russia and China to collaborate on a nuclear space energy
On 05 March, the head of Roscomos, Yuri Borisov, said that both Russia and China intend to put a nuclear power plant on the lunar surface to help in future human settlement. He also mentioned Russia’s plans to build a nuclear-powered cargo spaceship. He said that Russia. Could contribute to nuclear space energy in its joint project with China. Previously, Russia’s attempts to mine the moon-faced massive setbacks as its recent Lunar spacecraft, the Luna-25, failed and crashed in 2023. In February, China said it aims to put Chinese astronauts on the Lunar surface before 2030. Its unmanned probe, Chang’e 6, is about to lift off by May to collect rock samples from the moon. (“Russia ponders putting nuclear power plant on the moon with China,” South China Morning Post, 06 March 2024)

CHINA & TAIWAN
Taiwan’s deputy foreign minister visits Tuvalu
On 04 March, Taiwan’s Ministry of Foreign Affairs official Eric Chen reported that Taiwan’s deputy foreign minister, Tien Chung-kwang, visited Tuvalu to congratulate and support Tuvalu’s newly elected government. On 05 March, Chen said that Tien would attend the newly elected government's celebrations, conduct bilateral meetings with the new prime minister, Feleti Teo, and return to Taiwan on 09 March. Taiwan’s Ministry of Foreign Affairs said that the visit “demonstrates the solid ties between the two countries … as this year marks the 45th anniversary of the establishment of diplomatic relations between Taiwan and Tuvalu,” and will continue to work together for peace and prosperity in the Indo-Pacific region. The visit comes with growing speculation on Tuvalu’s potential diplomatic switch to China as its neighbouring country, Nauru, had switched its ties with Taiwan for China in January post-elections. (“Taiwan’s deputy foreign minister heads to Tuvalu to cement ties with Pacific ally,” The Guardian, 06 March 2024)

China’s defence budget rises by 7.2 per cent
On 05 March, according to a report published by Reuters, China aims to boost its defence budget by 7.2 per cent in 2024 to 1.67 trillion yuan (USD 230.60 billion), which is the same rate as in 2023. Other countries have keenly watched China’s defence budget as they are wary of China’s strategic intentions and the modernization of its armed forces due to the growing tensions over Taiwan. In the report, there was no detailed mention of the breakdown in military spending for 2024. Separately, in response to Taiwan, China said that it will completely oppose Taiwanese independence and external interference and has dropped mentioning peaceful reunification in a recent work report. (“China drops 'peaceful reunification' reference to Taiwan; raises defence spending by 7.2%,” Reuters, 05 March 2024)

China briefly mentions Taiwan at the “Two Sessions” meeting
On 05 March, Premier Li, while delivering the work report, mentioned in brief about China’s position in Taiwan. Li said that Beijing opposes Taiwan’s independence and external interference and favours the peaceful development of cross-strait ties. On 04 March, Chairman of the Chinese People’s Political Consultative Conference (CPPCC) Wang Huning did not mention Taiwan in his work report but mentioned it for the cross-strait relations. Dr Li Nan, a visiting senior research fellow at the East Asian Institute at the National University of Singapore, said that Beijing’s Taiwan policy will be the same with greater deterrence and will try to increase Taiwan’s economic integration with China. Dr James Char, a research fellow at the S. Rajaratnam School of International Studies, said the PLA will stick to military operations below the threshold of a full-scale war. He also said that China won’t dare to change or question the US’s status as the world’s great military power in the short to medium term as the PLA faces shortcomings in its capability to conduct military operations across the Taiwan Strait. (Lim Min Zhang, “China’s top leaders adopt measured tone on Taiwan at Two Sessions meetings,” The Straits Times, 06 March 2024)

CHINA & THE PACIFIC
Australia warns of growing military tech gap with Russia & China
On 04 March, Australia’s Deputy Defence Secretary for Strategy, Policy, and Industry, Hugh Jeffrey, said that Russia and China are overtaking the US and its allies in military innovation. He said the current military architecture based on the Cold War is unsuited to address future challenges. He also noted that Australia and the US must step up to be better prepared against the growing threats in the Indo-Pacific region. He also welcomed the Biden administration’s efforts to clear the regulatory hurdles to implement the AUKUS alliance fully. The West sees the AUKUS alliance as a strategy to contain the growing Chinese naval expansion, especially in the South China Sea. Despite the passing of the National Defence Authorisation Act (NDAA) by the US Congress, the challenge to implement the AUKUS alliance remains due to pending legislative reforms and concerns by some Australian lawmakers on Australia’s efforts to comply with US standards. Furthermore, many have raised concerns about the Australian PM’s proposal, which will restrict the sharing of sensitive and critical information with foreign researchers in the country. (Igor Patrick, “Australian defence official warns Washington audience about military tech innovation gap with China, Russia,” South China Morning Post, 06 March 2024)

EAST ASIA & THE PACIFIC READER

EAST ASIA
South Korea and the US begin talks on defence cost-sharing mechanism
On 05 March, South Korea and the US listed the names of the envoys, Lee Tae-woo and Linda Specht, respectively, to begin the early rounds of talks on sharing costs of keeping American troops in South Korea. The deal, if signed, is expected to come into effect in 2026. The two sides aim to conclude the deal before Donald Trump's potential re-election as the US president. At present, there are 28,500 US troops stationed in South Korea to deter North Korea. South Korea began sharing the cost of US troop deployments in the country in the early 1990s. Former President Trump, in the election campaign, has accused South Korea of free-riding on the US military and demanded to pay around USD 5 billion per year. The current deal is set to expire in 2025. Both sides could not make any progress during the Trump administration, and Seoul recently increased its defence spending by 13.9 per cent. (“South Korea, US prep early talks on defence costs ahead of election,” The Straits Times, 05 March 2024

South Korea in danger due to ongoing doctors’ strike, Opinion
On 06 March, according to an Opinion in Nikkei Asia titled “South Korea's economic future at stake in doctors' strike,” by Dae Sung Park, health ministry officials began conducting their visits to the hospitals to observe the number of doctors participating in the protest, and in process intends to cancel the medical license of those failed to return to work by 29 February deadline. According to Park, despite the fewer protestors, their absence created chaos in hospitals, which led to the postponement of surgeries and medical emergencies. President Yoon’s resolve to solve this problem has earned more popularity among the people. Park added that South Korea’s unions are among the most dangerous in the world due to their aggressive approach, which can be traced back to the 1980s. According to calculations by the Korea Economic Research Institute, between 2009 and 2019, an average of 38.7 days were lost due to strikes for every 1,000 workers in the country. A 2019 survey by the World Economic Forum ranked South Korea 34th among 36 members of the OECD in terms of labour flexibility. President Yoon’s pushback against the union’s demands is yielding results as the public views them as accountable for the health inconvenience caused by the protests. (Dae Sung Park, “South Korea's economic future at stake in doctors' strike,” Nikkei Asia, 06 March 2024)

South Korean police summons first doctor against mass walkouts protest
On 06 March, South Korean police investigated the first doctor for questioning in connection to the mass walkouts by the junior doctors. The government had set the deadline on 29th February for the protesting doctors to return to work to avoid getting punished. The doctors protest against the government’s recent proposal to increase medical school admissions to address the ageing society and workforce shortage problem. On 06 March, President Yoon Suk-you said at a Cabinet meeting, that the doctor's walkouts are “illegal collective action that violates people’s rights to life.” The police also raided the offices of the Korean Medical Association (KMA), which has been at the forefront in support of the protesting doctors, and its director, Dr Joo Soo-ho, has been accused of “aiding and abetting” the protestors. President Yoon said that the additional funds released by the finance ministry will be used to pay staff for working overtime. (“South Korean police question first doctor over walkouts,” The Straits Times, 06 March 2024)