IN FOCUS
By Teshu Singh 

China, Taiwan and the cross-Straits Relations: Escalating Tensions

On 10 March 2022, at the fifth session of the 13th National People's Congress, the spokesperson for the delegation of the People's Liberation Army and People’s Armed Police Force, Wu Qian, stated that “the Chinese military will never tolerate “Taiwan independence” separatist acts and the interference of external forces. He stated: “the more the US and Japan make waves in the Taiwan question, the tougher actions we will take to safeguard national sovereignty and territorial integrity.” Wu Qian alluded to the fact that the root cause of the rising tension and disturbance in the cross-strait relations is due to the activities of the ruling party Democratic Progressive Party (DPP).

First, the timing is crucial.
Tensions in Cross-Strait relations are not new but the timing of the statement is crucial. 2022 is an important year in Cross-Strait relations as it marks the 50th anniversary of Richard M. Nixon’s visit to China and the subsequent signing of the Shanghai Communiqué. The Shanghai Communiqué endorses the US’s One-China principle with regard to Taiwan and it subsequently led to the normalization of US-China relations. China is using the occasion to remind the US not to use Taiwan as bargaining chip in bilateral relations.

Second, the 20th Party Congress scheduled this year.
In 2012, at the 18th National Congress of the Communist Party of China, Hu Jintao said: “We must adhere to the principle of ‘peaceful reunification and one country, two systems and the eight-point proposal for growing cross-straits relations and advancing peaceful reunification of the motherland.’

In sharp contrast to his predecessor, in 2017, at the 19th National Congress of the Communist Party of China, Xi had reiterated that the “One-China principle is the foundation of Cross-Straits relations and is key to the peaceful development of relations between the two sides of the Taiwan Straits.” Under Xi Jinping, the term peaceful reunification seems to be absent. The 20th National Congress of the Communist Party of China is due this year. Thus, Xi Jinping is taking an aggressive stance towards Taiwan as the 20th Party Congress is approaching.

Third, Taiwan in US-China relations.
Since 2016, with the coming of the DPP, Taiwan has moved closer to the US. During Donald Trump’s period, Taiwan received generous assistance from the US. The trend continues under Joe Biden. President Joe Biden invited Taiwan for the Summit of Democracy. The Taiwanese Vice President Lai Ching-te met the Vice President for the first time, although it was brief. The Biden administration has already given two sets of arms to Taiwan. First, on 5 August 2021, the Biden administration gave arms worth USD 750 million. Second, on 8 February 2022, it was worth USD 100 million worth of equipment and services to support its air and missile defense systems. 

China has always criticized the US arms sale to Taiwan. On 15 March 2022, the spokesperson of the Taiwan Affairs Office of the State Council, Zhu Fenglian said DPP has purchased arm from the US with taxpayer’s money and seek independence by force.” Such attempts will not succeed and will harm peace and stability across Taiwan Strait and the interests of Taiwan residents. China also criticized the Consolidated Appropriations Act 2022 because it contains a Taiwan related provision. The issue of Taiwan is always high on the table during any US-China talks. Taiwan was discussed during the recently held talks between Yang Jiechi and Jake Sullivan talks. During the talks, China raised the issue of the One-China Principle, the provisions of the three Sino-US joint communiqués and the commitments made by the US.
 
Fourth, the effect of the Ukrainian Crisis on Taiwan
Taiwan issue has its roots in the activities of separatists who, in collusion with foreign forces, seek “Taiwan independence” and are threatening the nation's sovereignty, security and core interests, and curbing its development. The mainland firmly believes that peaceful reunification of the island with the motherland is in the best interest of the Chinese nation and all the Chinese people. In comparison to the Russian military action on Ukraine, the US response from the US to any Chinese aggressive move to take over Taiwan would be different from the present on Ukraine.

According to the Russian Federal Security Services (FSB), there is a speculation that Xi Jinping is considering launching an invasion of Taiwan in the fall of this year. A report released on 4 March noted that Xi Jinping is considering taking over Taiwan in the Fall. The timing of the aggression is related to the 20th Party Congress so that he can get re-elected for a third term. Responding to the statement, the Taiwanese Foreign Minister Joseph Wu said: “I cannot ascertain (the document) veracity, but we must be prepared to defend ourselves regardless of or when China intends to attack.”

Overall, there has been an increase in the temperature across the straits. China has been sending aircraft and violating Taiwanese airspace. They have also indicated that China will not tolerate any external interference on the Taiwan issue. However, there is a caveat, in the relationship. The two sides of the strait have a robust trade. In 2021, bilateral trade was USD 328 billion. To sum up, the tensions in the Cross-Strait relations are not new but at the moment it is all-time high and much more severe as compared to the last few years.

References:
“Chinese military spokesperson vows zero tolerance for 'Taiwan independence' separatist acts,” China Daily, 10 March 2022
“China urges U.S. to stop arms sales to Taiwan,” CGTN, 16 March 2022
“China, U.S. agree to 'manage differences' in Yang-Sullivan talk,” CGTN, 14 March 2022
“Taiwan question not same as Ukraine,” China Daily, 11 March 2022
“Xi considered invading Taiwan this fall: FSB whistleblower,” Taiwan News, 16 March 2022

IN BRIEF
By Avishka Ashok and Dincy Adlakha 

INTERNAL
COVID-19: China receives first batch of Pfizer drug; allows generic production
On 18 March, Global Times reported that the first batch of Pfizer drug with 21,200 boxes of the medicine reached China. The drug shall be distributed in Omicron-hit cities like Shanghai and Shenzhen in China that are currently reeling with a huge caseload. Additionally, formal approval was provided to five Chinese companies to produce a generic version of the drug nirmatrelvir as used in the effective Pfizer pills. The Shanghai customs office reported that there will be more batches of the drug arriving soon. China’s National Medical Products Administration also announced its emphasis on the approval process of COVID-19 medicines as the outbreaks reach more cities in China. (Leng Shumei and Qi Xijia, “China receives first batch of Pfizer pills, domestic oral candidate may be ‘approved in months’,” Global Times, 18 March 2022)

COVID-19: Hong Kong reports 20,000 new cases as frustrations due to restrictions rise
On 18 March, Hong Kong reported 20,082 new COVID-19 cases. The daily caseload is situated between 20,000 and 30,000 for the past two weeks. Hong Kong implemented a Zero-COVID strategy and imposed a ban on flights from nine countries, 14-day quarantine, a shutdown of schools, gyms, beaches and other venues. The residential population seems agitated by the restrictions. Hong Kong leader Carrie Lam is also monitoring the situation as she addressed the frustration of financial institutions due to the lockdowns and informed that an update on the situation will be provided soon. Hong Kong is currently witnessing its highest surge in cases and deaths. (Twinnie Siu and Marius Zaharia, “Hong Kong reports 20,082 new COVID cases as city promised fewer restrictions,” Reuters, 18 March 2022)

ECONOMY
Income tax: China to waive tax for some small firms
On 18 March, China announced that it is cutting income tax for some small firms to ease the burden of small businesses. The firms shall be exempted from 20 to 25 per cent of tax to support the slowing economy by providing small businesses with a push. This order shall be applicable from 2022 to 2024. Companies that have less than 50 million yuan worth of assets, fewer than 300 employees and have annual taxable income below 3 million yuan shall be eligible for this cut. The decision, as publicised by the Finance Ministry on their website, is a part of the Chinese plan to boost the economy. Previously, Chinese Premier Li Keqiang pledged tax cuts and rebates amounting to 2.5 trillion yuan. (“China cuts income tax for some small firms to 20%,” Reuters, 18 March 2022)

TECHNOLOGY
Space station: Second lecture from taikonauts set for 23 March
On 18 March, China Manned Space Agency announced that the second lecture of the lecture series from the Tiangong space station is scheduled for 23 March. The lecture is a part of larger interaction series between Shenzhou-13 taikonauts and students in China. It aims to inspire students towards a career in science and astronomy. This lecture will conduct experiments on the crystallization of saturated liquid, water-oil separation, and the like. The lecture will also demonstrate the difference between throwing objects in space and on Earth. The class will be held by Chai Zhigang, Wang Yaping and Ye Guangfu, the three taikonauts on a six-month stay in the space station. (“Second class from China's space station scheduled on March 23,” Xinhua Net, 18 March 2022)

REGIONAL
Cambodia: President Xi and President Hun Sen discuss the next step in the Belt and Road Initiative 
On 18 March, the Chinese President Xi Jinping held a telephonic conversation with the Cambodian Prime Minister Samdech Techo Hun Sen and discussed the Belt and Road Initiative in Cambodia. President Xi encouraged the infrastructural development in the country and said: “The two sides should engage in high-quality joint Belt and Road construction, speed up the construction of major projects such as highways, airports and special economic zones, and expand cooperation in emerging fields such as finance and digital economy.” He also appreciated the strong relations between the countries that continued to grow deeper during the pandemic. Xi also promised China’s support to Cambodia in the years to come. President Hun Sen appreciated China’s role in the infrastructural development and congratulated China for the successful hosting of the Beijing Winter Olympics and the two sessions. (“China, Cambodia agree to advance Belt and Road cooperation,” Xinhua Net, 18 March 2022)

INTERNATIONAL
Greece: China signs bilateral deal to boost tourism cooperation
On 18 March, China and Greece signed a Joint Action Program to boost cooperation on tourism between the two countries. The meeting held between Greek Tourism Minister Vassilis Kikilias and China’s Ambassador to Greece Xiao Junzheng welcomes the MoU that focuses on Sino-Greek cultural, medical, wellness and wedding bonds through tourism. The Joint Action Program dates for two years from 2022 to 2024. Ambassador Xiao said: “(It is) also a very important step for our two countries to celebrate the 50th anniversary (of the establishment of diplomatic ties between China and Greece) and to enrich our cooperation in the Year of China-Greece Culture and Tourism (2021-2022).” (“China, Greece sign deal to boost tourism cooperation,” China Daily, 18 March 2022)

The US: President Biden and President Xi discuss Ukraine, Taiwan on video conference 
On 18 March, the US President Joe Biden and Chinese President Xi Jinping held a video conference to discuss the crisis in Eastern Europe and other bilateral issues between the countries. Xi encouraged the US and NATO to engage with Russia directly in order to resolve the issues with Ukraine. President Xi referred to the situation and said: “Let he who tied the bell on the tiger’s neck take it off.” He used the well-known Chinese proverb to imply that the US and NATO must undo their actions to bring peace in the region. A senior official from the US referred to the call and said: “The president really laid out in a lot of detail the unified response from not only governments around the world, but also the private sector to Russia’s brutal aggression in Ukraine.” Xi Jinping also spoke of the Taiwan issue and said: “If the Taiwan issue is not handled properly, it will have a subversive impact on the relationship between the two.” (“Xi urges US, NATO to talk with Russia, opposes indiscriminate sanctions,” Global Times, 19 March 2022; Xi says improper handling of Taiwan issues will hit China-U.S. ties,” The Asahi Shimbun, 19 March 2022)

The US: China urges the country to deal with its own human rights violations
On 18 March, China’s Deputy Permanent Representative to the United Nations Dai Bing responded to the US accusations of violating human rights in the country. Bing urged the US to deal with the abuse of human rights in its own country and accused the US representative of misusing the General Assembly commemorative meeting on the occasion of International Day for the Elimination of Racial Discrimination. He said: “The U.S. accusation of the so-called "ethnic genocide" and "human rights violations" in China's Xinjiang is an outright lie of the century and a vicious political scheme orchestrated and staged by none other than the United States, which China firmly opposes and sternly rejects.” (“China urges U.S. to face up to its own human rights violations” Xinhua Net, 19 March 2022) ,