HIGHLIGHTS

INTERNAL
“Asia should manage its own security,” says NPC Standing Committee Chairman
On 29 March, Zhao Leji, Chairman of the Standing Committee of the National People’s Congress, said that Asia should manage its own security while delivering his opening remarks at the Boao Forum for Asia. He also calls for closer regional trade ties through a common regional market mechanism to drive the world economy. With the growing US hegemony, Zhao mentioned the implementation of the Global Security Initiative (GSI) for greater security via cooperation and rejected the Cold War mentality and bloc confrontation by the US. According to Joe, Zhao’s words tried to depict China and GSI as a framework for world peace. Zhao further mentions China’s desire to upgrade its FTA with ASEAN countries for greater regional integration. (Joe Leahy, “Xi Jinping lieutenant calls for Asia to ‘jointly’ manage its own security,” Financial Times, 29 March 2024)

5G market to fuel China’s economic growth: Report
On 26 March, according to the Mobile Economy China 2024 report released by the Groupe Speciale Mobile Association (GSMA) in the South China Morning Post, China’s rising 5G market will add around USD260 billion to the country’s GDP in 2030. The report mentioned that the mobile industry added 5.5 per cent of China’s GDP in 2023, and one-fourth of the upcoming contribution is expected to come from 5G. GSMA mentioned that mobile market contribution will add around USD 1.1 trillion to China’s economy by 2030. The report indicates that the sector provides around 8 million direct and indirect jobs and has contributed USD110 billion in tax revenue in 2023. GSMA predicts that China’s mobile and telecom sector will expect further boom and aid China’s economy, which is facing multiple domestic crises and geopolitical uncertainties. (Mandy Zuo, “China’s 5G market set to expand, fuel economic growth as tech solidifies status as pillar industry,” South China Morning Post, 29 March 2024)

CHINA & THE PACIFIC
China to remove tariffs on Australian wine
On 28 March, according to an opinion in BBC, China announced that it will remove tariffs on Australian wine exports. Mao mentions that Beijing’s latest move will improve ties between the two countries. The tariffs were imposed by China of more than 200 per cent in 2020 due to bilateral dispute. Mao indicated that the change in the Australian government in 2022 led to an improvement in China-Australia relations. Prime Minister Anthony Albanese welcomed the decision from China’s Ministry of Commerce and said that his government has been able to reduce other trade barriers with Beijing. Mao reported that the Australian wine industry lost USD1.37 billion in 2020 amid trade disputes with China. Chinese Commerce Ministry said that the tariffs on wines will be removed from 29 March. The tariff removal comes after China’s foreign minister Wang Yi visits Canberra to improve trade and economic relations. (Frances Mao, “China removes tariffs on Australian wine as relations improve,” BBC, 28 March 2024)

CHINA READER DAILY WIRE 
ECONOMY
China's domestic reforms and tech innovation to drive world economic recovery
On 28 March, the Chairperson of the Standing Committee of the National People's Congress (NPC) said that China will strive to drive the recovery of the world economy through its domestic reforms and tech innovation. This comes as the country faces high youth unemployment, mounting local government debt, and a rising property sector crisis. On the sidelines of the Boao Forum for Asia, Zhao welcomes the participation of other countries in China’s development by opening the market for foreign investors to boost green energy production. He announced a growth target for China’s economy by 5 per cent. Zhao also affirmed the goal of achieving climate neutrality through green technologies. He said that carbon dioxide emissions will peak by 2030 and achieve carbon neutrality by 2060. This comes after China filed dispute proceedings within the WTO, creating a rift between Washington and Beijing. (“China to Drive World Economic Recovery, Says a Top Communist Official,” VOA, 28 March 2024)

SCIENCE & TECHNOLOGY
“We have benchmarked our car with [Tesla’s] Model 3,” says Xiaomi chairman
On 28 March, Chinese smartphone company Xiaomi launched its first EV, the SU7 or Speed Ultra, in Beijing. Xiaomi has priced its car with the standard variant at 215,900 yuan to challenge Tesla’s Model 3. Xiaomi’s founder, chairman, and chief executive Lei Jun, “We have benchmarked our car with [Tesla’s] Model 3.” He further said that the SU7 has a battery life of 700 km and is priced lower than the Tesla Model 3. Phate Zhang, founder of CnEVPost, said that Xiaomi’s attractive pricing will help the company attract many buyers and stay competitive in the EV market. Lei mentioned that the launch of the SU7 EV car will help the company diversify its revenue sources beyond smartphones and electronic devices. According to a Bloomberg report, it is estimated that China’s EV market is expected to decline for the second straight year, with sales dropping by 25 per cent in 2024. (Che Pan, “Xiaomi surprises with lower-than-expected pricing on new EVs, in new challenge to Tesla,” South China Morning Post, 28 March 2024)

CHINA & TAIWAN
Any halt in US aid to Ukraine emboldens China against Taiwan, says Taiwan’s FM
On 28 March, Taiwanese Foreign Minister Joseph Wu said that any halt in US arms shipments to Ukraine would embolden China to project aggression against Taiwan. He also said that this will enable China to push propaganda that the US is an unreliable partner. He also mentions that Russia’s victory will be seen as the victory of authoritarian countries as Russia, China, North Korea, and Iran are linked together. His remarks come as the US Congress is unable to pass the supplement funding package that includes funding to Taiwan. Edward mentions that some Republican members, like former US President Donald Trump, are against the idea of giving further aid to Ukraine. Wu states that if the US backs out, then its allies will back out from the US alliance, thereby encouraging China to wage aggression against Taiwan. (Edward Wong, “Taiwan’s Top Diplomat Says US Aid to Ukraine Is Critical for Deterring China,” The New York Times, 28 March 2024)

CHINA & EAST ASIA
China warns against stringent sanctions on North Korea
On 28 March, China's Deputy Permanent Representative to the United Nations, Geng Shuang, warned of any further sanctions against the Democratic People's Republic of Korea (DPRK). His remarks come after the UNSC voted on a draft resolution that extends the mandate of the Panel of Experts assisting the Democratic People's Republic of Korea (DPRK) Sanctions Committee. Geng said that increasing sanctions would be counterproductive, and any military alliances and intentions with confrontations would further exacerbate tensions in the Korean Peninsula. He reiterated China’s stance, calling for all parties to adopt a rational and pragmatic approach to a political settlement. Geng also said that the sanctions should serve to denuclearize the Korean peninsula. He further adds that China supports Russia’s proposal to set a time limit for the DPRK sanctions and conduct periodic reviews. (“China warns against tightening of sanctions against DPRK,” CGTN, 29 March 2024)

CHINA & SOUTHEAST ASIA
Philippines says it won’t remain silent against Chinese aggression
On 29 March, the Ministry of Defense said that the Philippines would not engage in any fight with China in the South China Sea (SCS) but would not bow down and remain silent. The ministry showed China’s isolation from the rest of the world due to its constant illegal aggression. The ministry also said, “It also shows the inability of the Chinese government to conduct open, transparent, and legal negotiations. Their repertoire consists only of patronising and, failing that, intimidating smaller countries.” The remarks come after the Chinese counterpart accused the Philippines of 28 March provocations after Manila accused Beijing of aggressive actions in Manila’s EEZ. On 28 March, Philippines President Ferdinand Marcos Jr said that the Philippines would take proactive measures against “illegal, coercive, aggressive, and dangerous attacks by China’s coast guard.” (“Philippines says it will not yield in submission in row with ‘patronising’ China,” The Straits Times, 29 March 2024)

Chinese top diplomat for a four-day visit to Singapore
On 28 March, China’s top diplomat, Liu Jianchao, visited on a four-day trip to Singapore to meet with Prime Minister Lee Hsien Loong and the country’s incoming leader, Deputy Prime Minister Lawrence Wong. In his remarks on the ongoing global conflicts, Liu said, “The world needs connectivity, not decoupling.” In the US, Liu said that Washington is trying to oppress and contain China. According to Adam, it is believed that Liu is going to be the next Foreign Minister, replacing Wang Yi. Liu currently heads the international department of the CCP and is responsible for maintaining relations with foreign political relations. He had previously met US Secretary of State Anthony Blinken in January 2023. The Ministry of Foreign Affairs of Singapore said that both countries were committed to expanding their cooperation in trade and investments. Both sides discussed ASEAN-China relations and other regional and international developments. (Adam Hancock, “Chinese Diplomat Liu Jianchao Meets With Singapore's Leaders,” VOA, 28 March 2024)

CHINA & THE AMERICAS
Less than three Americans supports TikTok bill, says Savanta poll
On 29 March, according to a poll released by Savanta in the South China Morning Post, three out of ten Americans supported the bill the US House of Representatives passed in February, which would ban TikTok if its owner did not divest it. According to the poll, half of the 2,000 Americans aged 18 or older opposed the bill, while only 28 per cent supported it. Most respondents said they could switch to other social media apps, mainly YouTube and Instagram. According to Ethan Granholm, research analyst at Savanta, the ability to deliver and implement the TikTok ban for lawmakers is different, as young people are critical to the outcome of the upcoming presidential elections. Mark mentions that TikTok has 102 million monthly active American users. The polls also showed that two-thirds of the respondents were concerned about the security risks from the TikTok app and vouched for increased protection of personal data. TikTok has spent a lot of money on US lobbying and advertising and has released a marketing campaign worth USD 2.1 million in key election polling states of Nevada, Montana, Wisconsin, Pennsylvania, and Ohio. (Mark Magnier, “Poll shows fewer than 3 in 10 Americans support TikTok bill that would force Chinese owner to sell the app,” South China Morning Post, 29 March 2024)

CHINA & EUROPE
UK government to impose sanctions on China over hacking
On 29 March, according to an explainer in The Guardian, the UK plans to impose sanctions on two individuals and one entity from China due to hacking. The UK Home Secretary James Cleverly said, “The sanctions were a sign that “targeting our elected representatives and electoral processes will never go unchallenged.” According to Professor Alan Woodward, the sanctions will not make any difference to the UK’s cybersecurity, and they are responding to the US’s request. Amy reveals that a hacking outfit known as APT31 is accused of engaging in large-scale global hacking operations by sending more than 10,000 malicious emails to politicians, officials, journalists, and critics of China across the world. The Chinese embassy in London rejected the UK government’s baseless claims. However, the government has not accused the Chinese entity of breaching the data as the UK tries to balance its relationship with Beijing. Amy also reports the struggle within Western countries to effectively coordinate a response against hacking attempts due to China’s plausible deniability regarding its responsibility. (Amy Hawkins, “Western governments struggle to coordinate response to Chinese hacking,” The Guardian, 29 March 2024)

EAST ASIA & THE PACIFIC READER
EAST ASIA
Taiwanese Navy chief plans to visit US
On 29 March, Reuters reported that Taiwanese Navy chief Tang Hua will visit the US next week to attend a military ceremony and discuss bilateral cooperation. It also revealed that Tang would visit the US Indo-Pacific Command in Hawaii for a Pacific Fleet change-of-command ceremony. He is also expected to attend the Sea-Air-Space conference on 8-10 April and plans to meet the US chief of naval operations, Admiral Lisa Franchetti. Idrees and Ben mention Tang’s visit as part of the US effort, known as the Joint Island Defence Concept, to coordinate with Taiwan, Japan, and others to counter China's armed forces within the first island chain. The visit announcement comes after China ramped up its military pressure on Taiwan for years by sending fighter jets over the median line in the Taiwan Strait. (Idrees Ali and Ben Blanchard, “Taiwan's navy chief to visit US next week, sources say,” Reuters, 29 March 2024)

THE PACIFIC
Australia to ramp up on Rare earth minerals despite China’s dominance
On 29 March, according to a commentary in Nikkei Asia, Australia boosted its role in rare earth minerals despite China’s dominance in this sector. Shaun reports that Australia had recently announced a second large rare-earth project with a loan offer of AUSD840 million to the Australian miner Arafura to build a mine and processing facility in the Northern territory. Iluka constructed a similar project with a rare-earth processing plant of AUSD1.25 billion in Western Australia. Shaun mentions that Australia desires to boost its midstream and downstream industries to become a global supplier of rare earth materials. However, it faces tough competition from low-cost producers in Africa and Asia. Experts mention that Australia currently faces an overproduction issue, and the declining prices will hurt the industry’s long-term growth. According to Wood Mackenzie analyst Ross Embleton, China currently accounts for about 60% of the global mined supply of rare earths and is expected to fall to 50 per cent by 2035. Chief executive Tom O'Leary of the Iluka project mentions that the project's costs have increased to AUSD1.2 billion. He also mentions that the project is not only from a geopolitical and defense perspective but also from the perspective of facilitating global decarbonization. (Shaun Turton, “Australia doubles down on rare earths despite Chinese dominance,” Nikkei Asia, 29 March 2024)

CEAP Team: Femy Francis and Akhil Ajith are Research Assistants at NIAS.