HIGHLIGHTS
CHINA & TAIWAN
China objects to Taiwan Vice President’s visit to US
On 12 March, Chinese officials objected to newly elected Taiwanese Vice President Hsiao Bi-khim’s private visit to the US. Chinese Embassy Spokesman Liu Pengyu said that the country firmly opposes any form of official interaction between the US and "the Taiwan region” and referred to Hsiao as "a diehard 'Taiwan independence' separatist." He added that the US must not facilitate any contact between the US government officials and Hsiao Bi-Khim. Taiwanese officials clarified that Hsiao will be in the US for the next few days and is on a low-profile personal trip. The US State Department reiterated that Hsiao would be travelling in her capacity. Hsiao was Taipei's de facto ambassador to the United States from 2020 until 2023, when she joined the Taiwanese presidential race and decided in an election in January 2024. (“Taiwan's vice-president elect Hsiao on 'personal trip' to the US; China objects,” The Straits Times, 13 March 2024)

CHINA & TAIWAN
Taiwan redefines first strike definition against China
On 12 March, according to an analysis in The Straits Times, the Ministry of National Defense of the Republic of China updated its definition of “first strike” to include any warplane or vessel incursion into its territorial space. This highlights a shift away from the Taiwanese military’s traditional rule of engagement, where the armed forces are authorised to respond only after an enemy has fired a first shot, such as a missile or artillery shell. Taiwan defines its territorial space as 12 nautical miles from its coast, which is in line with international conventions. Taiwanese Defense Minister Chiu Kuo-cheng said, “We should not rashly provoke war, but we must strengthen combat readiness.” While the Defense Ministry’s comments focused on air space, Chiu’s statement also focused on covering territorial waters. Dr Chen Liang-chih, a military expert at Taiwan’s Institute for National Defence and Security Research (INDSR), said that China’s grey zone tactics to intimidate Taiwan are increasing daily by erasing the median line concept and moving close to Taiwan. He further said that Beijing might increase its pressure tactics close to May during the President’s inauguration to weaken Lai’s credibility before taking office. (“‘Cannot be passive forever’: Taiwan updates definition of ‘first strike’ to counter China,” The Straits Times, 12 March 2024

CHINA & THE AMERICAS
China to use TikTok to influence 2024 US elections, says the US Director of National Intelligence
On 13 March, according to an analysis in The Guardian, the Director of National Intelligence, Avril Haines, said during the House of Representatives intelligence committee hearing that China could use the social media app TikTok to influence the 2024 US elections. Lawmakers also raised concerns about the growing influence of the Chinese government over the app and its content, creating US political divisions. Democratic Representative Raja Krishnamoorthi, along with Republican chair Mike Gallagher, introduced the bill last week that would give TikTok’s Chinese owner ByteDance six months to divest its stakes from the company. The House is scheduled to vote on the bill on 13 March. On 11 March, the 2024 annual threat assessment of the US Intelligence Community reported that the Chinese propaganda arm used TikTok accounts to target candidates from both political parties during the US midterm election cycle 2022. FBI Director Christopher Wray voiced the same concerns and said that TikTok will compromise their devices to Chinese interference. (“China could use TikTok to influence US elections, spy chief says,” The Guardian, 13 March 2024)

CHINA READER DAILY WIRE
INTERNAL
Chinese citizens question beverage giant Nongfu Spring national allegiance, calls for boycott
On 13 March, according to an opinion in The Strait Times, Chinese domestic beverage brand Nongfu Spring faced boycott calls from mainland nationalist citizens, questioning their national allegiance, the firm is facing in working in a highly patriotic environment. The boycott calls started after the death of the founder of key rival Hangzhou Wahaha Group on 25 February, leading to a sharp drop in its stock by 06 per cent on the Hang Seng China Enterprises Index. The critics argue that the packaging of Nongfu Spring has some elements linked to Japan. Other criticism includes the old debate on Nongfu’s superior water quality over Wahaha and other brands. Some critics blame the company as its founder, Zhong Shanshans’ son, possesses a US passport, doubting the family’s allegiance to China. The growing nationalistic pressure is backlashing some domestic firms amid the country’s pivot from foreign brands. The nationalistic sentiments also create challenges for the government’s efforts to restore the country’s private sector, which has been subjected to tight regulations in achieving the 5 per cent growth rate. The Supreme Court has vowed to punish online attacks against domestic entrepreneurs to facilitate a conducive environment for the nation’s economy. (“China bottled water giant Nongfu Spring faces boycott calls,” The Straits Times, 13 March 2024)

One killed and many injured in a building explosion near Beijing
On 13 March, one person was killed, and 22 people were hurt in a four-storey building blast near Beijing. The explosion occurred at 7:54 am in Sanhe county of Langfang in northern Hebei province, neighbouring Beijing. The government stated that the explosion happened due to a gas leak at a fried chicken restaurant in Yanjiao, a town in Sanhe. The municipal department had dispatched 36 vehicles and 154 personnel to the blast scene. (Alyssa Chen, “1 dead and more than 20 hurt in China after blast tears down 4-storey building near Beijing,” South China Morning Post, 13 March 2024)

ECONOMY
China’s mounting local government threatens’ its target growth: Opinion in The Financial Times
On 13 March, an opinion in the Financial Times, China has started ending infrastructure projects in debt-ridden provinces to curb infrastructure spending to meet its target economic growth. Many analysts project that China’s ambitious 5 per cent target annual growth rate announced during the Two Sessions meeting will be difficult to achieve. According to Michael Pettis, a finance professor at Peking University, the Chinese government focused on tackling the real estate crisis in 2021 and is now focused on addressing the local debt issue. According to a policy document referred to by the Financial Times, China’s State Council to maintain oversight on the government projects for the ten debt-laden provinces. Many local governments tried to seek debt relief on the sidelines of the NPC’s two-session meeting. As per Goldman Sachs analysis, China is trying to reallocate the fiscal stimulus by scrapping the debt-ridden projects in indebted areas to other provinces for balanced growth. Chris Beddor of Gavekal Dragonomics says that the local government’s attempts to restructure the debts through bank-issued bonds are not ideal in the long term and will create many policy errors for its growth target. (Joe Leahy; Ryan McMorrow; Cheng Leng, “China’s treatment of local debt ‘ulcer’ threatens growth target,” Financial Times, 13 March 2024)

CHINA & EAST ASIA
“Behave cautiously and in a neutral manner,” Chinese Foreign Ministry warns South Korea
On 12 March, the Ministry of Foreign Affairs of the People’s Republic of China warned about South Korea’s behaviour in the disputes between Beijing and Manila in the South China Sea (SCS). The Ministry Spokesperson Wang Wenbin expressed severe concerns about South Korea’s comments about a collision between Chinese and Philippine coast guard vessels near the Second Thomas Shoal last week. Wang pointed out that South Korea is not part of the South China Sea disputes and has repeatedly blamed China over many years. He also said that Seoul has abandoned its neutrality stance. On 07 March, a spokesman for the Ministry of Foreign Affairs of the Republic of Korea said that Seoul was “deeply concerned about the dangerous situation” and “use of water cannons against the Philippine vessels in the South China Sea.” The Second Thomas Shoal, known as Renai Jiao in China and Ayungin Shoal in the Philippines, is an uninhabited reef located within the Philippines' 200-nautical mile exclusive economic zone. Using its Nine Dash Line claims, China is trying to claim sovereignty over the entire Spratly Islands. (Liu Zhen, “‘Watch yourself’: Beijing warns South Korea after remarks on South China Sea clashes,” South China Morning Post, 12 March 2024)

CHINA & SOUTH ASIA
Chinese Foreign Ministry fields diplomatic protests against PM Modi’s Arunachal visit
On 11 March, China issues diplomatic protests against PM Modi’s visit to Arunachal Pradesh on 09 March and said that India’s actions would complicate the border issue. On 09 March, PM Modi inaugurated the Sela Tunnel, which was built at an altitude of 13,000 feet in Arunachal Pradesh. India had rejected Chinese claims and said that Arunachal Pradesh is an integral part of India, and China’s invented names won’t change the reality. Chinese foreign ministry spokesperson Wang Wenbin said, "Zangnan area is Chinese territory," and opposes India’s right to develop the area arbitrarily. (“China lodges protest over PM Modi's visit to Arunachal,” The Times of India, 12 March 2024)

CHINA & EUROPE
China’s new diplomatic initiative to repair ties with EU: VOA Analysis
On 12 March, according to an analysis in the VOA, China launched new diplomatic initiatives to repair its ties with the EU by sending its special envoy on Eurasian affairs on shuttle diplomacy to many European countries. Last week in a press conference, Chinese Foreign Minister Wang Yi countered the EU’s outlook on China as “a partner, competitor and systemic rival” and stressed that “common interests outweigh differences.” He said, “China and Europe do not have clashing fundamental interests between them or geopolitical and strategic conflicts.” Justyna Szczudlik, a China analyst and deputy head of research at the Polish Institute of International Affairs, says that China is attempting to revive ties with the US and EU as Western sanctions are hurting the Chinese economy. Sari Arho Havren, an associate fellow at the Royal United Services Institute, said that despite Beijing’s efforts, the old strains remain, including trade imbalance and China’s stance on the Ukraine war. Beijing had recently extended visa-free travel to six other European countries to amend ties with the EU. Chinese special envoy on Eurasian affairs, Li Hui, conducted a second round of shuttle diplomacy to Russia, Brussels, Poland, Ukraine, Germany, and France in early March to oppose its stance against EU’s sanctions on Chinese companies. He told his European counterparts that Ukraine’s territorial integrity would be ensured only when the EU stopped sending its arms to Kyiv. (William Yang, “China Renews Diplomatic Push to Repair Strained Ties with EU,” VOA, 12 March 2024)

CHINA & THE AMERICAS
China opposes US’s 100 million dollar proposal to strengthen Taiwan’s cross-strait deterrence
On 12 February, China rejected the US administration’s budget proposal to seek USD 100 million to help strengthen Taiwan’s cross-strait deterrence. Chinese Ministry of Foreign Affairs spokesperson Wang Wenbin said, “China strongly opposes US’ efforts to arm Taiwan and will take resolute measures to firmly safeguard its own sovereignty and territorial integrity.” The US Department of State, in its standalone 2025 budget, said that it is a “historic investment in Taiwan’s security … [to] strengthen deterrence and maintain peace and stability across the Taiwan Strait.” The US Department of Defense sought USD 500 million under the US Pacific Deterrence Initiative to replenish weapons that would enable Taiwan to address Chinese aggression in the region. The funding requests are part of a USD 7.27 trillion budget by US President Joe Biden for the 2025 financial year. The Deputy Secretary of State for Management and Resources, Richard Verma, said that the USD 100 million aid would strengthen Taiwan’s capability and assure the US’s commitment to security assistance for the island country to ensure a free and open Indo-Pacific. He added that the funding was part of the International Military Education and Training Programme (IMET), which assists cooperation between the US and foreign militaries. The budget requests come as Taiwan continues to face increased threats from the PLA. (Lawrence Chung, “Beijing hits back after Biden White House seeks US$100 million to boost Taiwan’s cross-strait deterrence,” South China Morning Post, 12 March 2024)