HIGHLIGHTS
CHINA & SOUTH ASIA
China’s claims over Arunachal Pradesh are absurd, says Indian Foreign Ministry
On 19 March, the Spokesperson of the Ministry of Foreign Affairs of the Republic of India,Randhir Jaiswal, said that China’s claims on Arunachal Pradesh were absurd and added that it would be an integral part of India. He said, "Repeating baseless arguments in this regard does not lend such claims any validity."China claims Arunachal Pradesh as part of Southern Tibet, while India rejectsChinese claims. He responded to the comments made by the spokesman of China'sMinistry of National Defense Senior Colonel on the inauguration of the road tunnel by PM Modi on 09 March. Zhang said, “India should stop taking any moves that complicate the border issue and earnestly maintain peace and stability in the border areas,” adding that the tunnel's inauguration “runs counter to the efforts made by both sides to ease the border situation.” (“India says China's claims overArunachal Pradesh state 'absurd',” Reuters,19 March 2024)

CHINA & TAIWAN
China built big military bases near Taiwan’s Itu Aba in the South China Sea, says Taiwanese Foreign Minister
On 20 March, Taiwanese Foreign Minister Joseph Wu said that China had built big military bases on the three islands close to Taiwan’s Itu Aba in the South China Sea.Amid the growing contestation for claims in the South China Sea, Taiwan controls only one islet in the disputed Spratly Islands called Itu Aba, whichTaiwan refers to as Taiping. Taiwanese lawmakers are forcing President Tsai to visit the island as her predecessors had visited the island. Wu said that the island belonged to Taiwan and that the government would defend its sovereignty.He also said that despite the ongoing tensions between China and thePhilippines in the South China Sea, the tensions are increasing over Itu Aba. He said, "China has already created very enormous South China Sea military bases on the three islands surrounding Taiping - Subi Reef, Fiery Cross Reef, and Mischief Reef - and these are all quite close to our Taiping." Taiwan also controls the Pratas Islands in the northern part of the South China Sea. Vietnam, Malaysia, and Brunei claim the disputed regions of the South China Sea with both China and Taiwan. (“Taiwan warns of 'enormous' Chinese bases near its South China Sea holding Itu Aba,” The Straits Times, 20 March 2024)

CHINA READER DAILY WIRE
SCIENCE & TECHNOLOGY
Chinese company EHang’s flying taxi takes off in the Taobao marketplace, says anEditorial in SCMP
On 19 March, the South China Morning Post reported that the Chinese flying taxi company EHang began selling its EH216-S electric vertically short take-off landing(VTOL) vehicle on Taobao marketplace, an online platform by Alibaba Group. EHang is based in Guangzhou province in China, and its EH216-S is priced at2.39 million yuan (USD332,000). EHang announced that its products will be available for sale at USD410,000 outside China from 01 April. EH216-S became the world’s first company to obtain a Type Certificate and StandardAirworthiness Certificate for pilotless eVTOLs from the Civil Aviation Administration of China (CAAC). The product was first announced in February 2018 and has conducted over 42,000 successful fight tests in more than 14 countries. It is a two-seater aircraft with a top speed of 130 kmph, a cruising speed of 100km/h, and a maximum altitude of 3,000 metres. It has a range of 30km and a flight time of 25 minutes. According to EHang, the EH216-S is ideal for various urban air mobility (UAM) applications, including air taxi services, aerial tourism, airport shuttles, and cross-island transport. (Ben Jiang, “Chinese flying taxi maker EHang sells autonomous passenger drone for US$332,000 on Taobao as nation’s low-altitude economy takes off,” South China Morning Post, 19 March 2024)

CHINA & SOUTHEAST ASIA
China draws a new territory along its southern waters bordering Vietnam, says a commentary in SCMP
On 19 March, according to a commentary in the South China Morning Post titled “China has drawn its territorial line in the Gulf of Tonkin. Is the South China Sea next?,” by Laura Zhou, China’s decision to draw a new territorial line has sparked regional concerns about its intention to replicate the same in the South China Sea. In early March, Beijing declared a new set of seven base points along its southern coast to demarcate its territorial waters and sovereignty over airspace, seabed, and sea soil in the Gulf of Tonkin, also known as the Beibu Gulf in China. Beijing says that its new baseline was in accordance with the UNCLOS, which allows for a straight line in some cases and is in line with China’s Law on the Territorial Sea and the Contiguous Zone in1992. On 15 March, the Spokesperson for the Ministry of Foreign Affairs of thePeople’s Republic of China, Wang Wenbin, said that China “has a legitimate and lawful right” to decide the new baseline. He also said that the new baseline is meant to serve better economic development to the provinces and regions along the Beibu Gulf, such as Guangxi, Guangdong, and Hainan, and to realize China’s strategic goal of becoming a strong maritime power. Kentaro Nishimoto, an international law professor at Tohoku University, said that the new baseline will allow China to convert a major portion of the northern side of the SouthChina Sea into its control, thereby exercising more power in the region. (LauraZhou, “China has drawn its territorial line in the Gulf of Tonkin. Is the South China Sea next?,” South China Morning Post, 19 March 2024)

“We are trying to keep things on an even keel,” says Philippines President Marcos Jr
On 19 March, Philippine President Ferdinand Marcos Jr said that despite China’s growing claims in the South China Sea, the Philippines government’s efforts to protect the sovereignty of the disputed territories are not poking the bear. In an interview with Bloomberg Television’s Haslinda Amin in Manila, he said, “We are trying to keep things on an even keel,” adding that the country needs to do more to defend its territory. With President Marcos holding office in 2022, thePhilippines military has increased its operations to continue the resupply missions and escorting the fishermen in the SCS. Marcos said that his country has not instigated any conflict or seeking any confrontation and is trying to address people’s concerns. China claims the disputed Second Thomas Shoal as its own and has been sending its coast guard ships to threaten the Philippines' resupply mission. On the mutual defense treaty with the US, President Marcos Jr said he does not want to invoke the treaty as the Philippines' has kept the talks open with China. (“Marcos warns on China threat, says he’s ‘not poking the bear’,” The Straits Times, 19 March 2024)

CHINA & THE PACIFIC
Australia intends to manage the differences wisely with China, says FM Penny Wong
On 20 March, Foreign Minister Penny Wong said that Australia desires a stable, productive, and mature relationship with China in her discussion in Canberra. ChineseForeign Minister Wang Yi has been visiting Australia for a bilateral visit in2017. The ties between the two countries deteriorated after Australia’s former PM, Scott Morrison, called for an inquiry into the origins of the COVID-19pandemic, which led to the imposition of trade restrictions on Australian exports to China. Wong welcomed the removal of trade impediments on barley, wine, and other exports to China. Chinese state media welcomed Australia’s decision to suspend anti-dumping duties on Chinese wind towers. Wong also conveyed her concerns about the death sentence given to top Australian writerYang Hengjun and said that the Australian government would advocate for his release. She also raised concerns about maritime security, the South China Sea, and China’s unsafe conduct in the sea. She added, “Dialogue enables us to manage our differences, it doesn't eliminate them, but this government, in the interest of Australia, will always seek to manage those differences wisely.”(Sophie Mak and Shaun Turton, “Australia, China foreign ministers to manage differences 'wisely',” NikkeiAsia,20 March 2024)

CHINA & THE AMERICAS
Canadian Chinese arrested in the US over stealing Tesla’s secret
On 19 March, the South China Morning Post reported that a Chinese Canadian was arrested in the US for stealing Tesla’s trade secrets and conspiring to sell them to the undercover police. Federal Prosecutors in Brooklyn said that Klaus Pflugbeil, an operator of the China-based business, was arrested in New York, and he travelled to meet with undercover agents. They further noted that Pflugbeil and his business partner Yilong Shao built their company using Tesla’s trade secrets and will be charged with a prison tenure of 10 years if convicted. Breon Peace, US attorney for the Eastern District of New York, said to the Justice Department and the FBI that the defendants had set up a company in China and stole trade secrets from Tesla to manufacture electric vehicles costing millions of dollars for R&D. (“China-based Canadian stole Tesla secrets, US prosecutors say,” South China Morning Post, 20 March 2024)

CHINA & EUROPE
Putin to visit Beijing in May, says Reuters
On 19 March, according to reports from Reuters and other sources, Russian President Vladimir Putin will be travelling to Beijing for bilateral talks with President Xi Jinping. It will be his first overseas trip after his new presidential term. Kremlin spokesman Dmitry Peskov said that the details will be informed as the dates get closer. His visit will mark before Xi’s planned visit to Europe. Along withChina, India and North Korea congratulated Putin for his election victory asRussia’s President. Both Russia and China had declared a no-limits partnership in February 2022 before the start of the Russia-Ukraine war. The Western sanctions on both Russia and China had led Beijing to forge greater trade and military ties with Moscow. (“Russia’s Putin to visit China inMay: Sources,” The Straits Times, 19 March 2024)

EAST ASIA & THE PACIFIC READER
EAST ASIA
Bank of Japan hikes interest rates, says an Opinion in NikkeiAsia
On 19 March, according to an opinion in NikkeiAsia titled “What's next for the BOJ after itsexit from negative rates?,” by Wataru Suzuki, the Bank of Japan (BOJ) has hiked the interest rates since 17years ago. After the financial bubble burst in the 1990s, BOJ initiated its quantitative and qualitative easing" policy to stimulate more spending by companies and households. However, it failed to remove the deflationary tendencies in the country. The increasing inflation backed the decision to end this policy due to the declining yen against the dollar and global price following the Ukraine war and COVID-19 recovery. The Japan Business Federation Chairman Masakazu Tokura said that the BOJ’s policy shift will end a favourable environment for domestic businesses. BOJ Governor Kazuo Ueda said that he cannot rule out the possibility of any unforeseen disruption with the increase in interest rates. Prime Minister Fumio Kishida said that the BOJ had tried to ensure an accommodative monetary policy for positive economic growth. In a report, SMBC Nikko Securities in Tokyo said that the interest rate hike will strengthen the yen against the US dollar by mid-2024, thus making investors look for domestic businesses. Experts predict that the continued increase in the interest rates will impact Japanese exports and raise the borrowing costs for small companies. (Wataru Suzuki, “What's next for the BOJ after itsexit from negative rates?,” NikkeiAsia, 19 March 2024)