IN FOCUS
By Avishka Ashok

Bilateral Issues between China and the US: Political, Economic and Ideological challenges

On 12 November, China and the US agreed to hold a virtual meeting on 15 November to discuss the obstacles in the bilateral relations and work towards creating stability between the two giant economies of the world. The details of the meeting are yet to be released but the following are the major issues between the two countries. 
 
Political Issues
There a number of issues that complicate the relation between the US and China. The issue at the forefront at the moment is the interference of the US in areas that China considers its internal issues. The US is deeply invested and cannot afford to turn a blind eye against the Taiwanese and Tibetan Independence Movements, the Hong Kong’s protests against the authoritarian nature of governance in the city, the human rights abuses in Xinjiang because of the stands it has taken previously in support of upholding human rights. Other political issues such as extending its support for Japan, South Korea and other Southeast Asian countries in the South China Sea further worsen the relations between the two countries.
 
Economic Issues
The trade relations between the two countries took a turn for the worse during the presidency of Donald Trump. Until now, the US has imposed tariffs worth USD 550 billion on China while China has pushed for tariffs worth USD 185 billion on the US. The past two years have witnessed numerous highs and lows in the relationship with many negotiations between the US and Chinese officials, imposition of frequent tariffs, created restrictions on the share of technology and fought each other on numerous cases at the WTO. The reason for the back and forth tariff war and the constant tensions between the two countries is essentially based on a complex of the other replacing and becoming the most important GDP in the world. As China inches closer to the current the US in terms of its GDP, its economic growth of 6.90 per cent threatens the US economy which currently has a growth of 2.27 per cent.
 
Ideological Issues
The differences between the US and China can be traced decades back to 1949 when Mao Zedong established himself as the leader of the Communist China. Soon after the establishment of the People’s Republic of China, the country chose to support the USSR while the US picked the side of capitalism. Eventually, the differences between communism and capitalism has found its roots in the present times as well. Although, communism in China has undergone immense changes over the years, it is essentially against the Western lifestyle and standard of living. The Taiwan Strait Crisis, the Korean War, the Tibetan Uprising, Tiananmen square massacre were issues that acted as a catalyst in separating the two countries further more.

References:
Dorcas Wong and Alexander Chipman Koty, “The US-China Trade War: A Timeline,” China Briefing, 25 August 2020
“GDP by Country,” Worldometer
“U.S. Relations With China,” Council on Foreign Affairs
Kawashima Shin, “The Challenges of US China Policy,” The Diplomat, 6 April 2021
Michael Martina and David Brunnstrom, Trevor Hunnicutt, "Biden and China's Xi will hold virtual meeting on Monday," Reuters, 13 November 2021

IN BRIEF
By Dincy Adlakha and Keerthana Nambiar

INTERNAL
National Health Commission expert displays faith in Chinas dynamic zero-case policy for COVID-19
On 14 November, Liang Wannian, the head of an expert panel of COVID-19 response of China’s National Health Commission said in a statement that CHina is adopting a dynamic zero-case policy rather than bringing infections to zero. This policy aims to prevent viral transmission in communities, thorough search and top treatment for patients. The expert also said that this policy has led to the effective controlling of recent scares by capsizing mortality and minimizing serious illness. (“China’s dynamic zero-case policy proves effective in preventing viral transmission in communities: NHC expert,” Global Times, 14 November 2021)

Women’s Tennis Association calls on China to investigate case made by Peng Shuai
On 15 November, the WOmen’s Tennis Association called on CHina to investigate allegations of sexual assault against former Chinese Vice Premier. The remarks were made by Peng Shuai, former top-ranked doubles player in China through a social media post. The WTA said in a statement that it seeks a “full, fair and transparent investigation into sexual assault allegations” against the former Chinese leader. The chairman and CEO of WTA also expressed concern over the matter and called for “utmost seriousness” on the issue. Any response is yet to be made from the Chinese side, however, many have reported that internet searches for Peng’s name have been disabled by the authorities. (“WTA calls on China to investigate Peng sexual assault allegations,” Reuters, 15 November 2021)

China’s sees growth in industrial output and retail sales
On 15 November, Reuters reported that the industrial output and retail sales have grown in China when compared to one in October. The fresh spill over of COVID-19 and supply shortages has not affected the output but the slowing property sector made a significant impact on the economic outlook. According to Reuters poll of analysts, “The industrial output growth beat expectations of a 3.0% year-on-year increase” but it “remained the second lowest print this year.” (“China industrial output, retail sales accelerate but property clouds outlook,” Reuters, 15 November 2021) 

TECHNOLOGY
China displays advanced military capabilities in Dubai Airshow
On 14 November, as a reflection of CHinese attention to the Middle Eastern arms market, China showcased its advanced L-15 jet trainer at the Dubai Airshow. Many other products were also displayed in the first foreign airshow that CHina has taken part in since the COVID-19 pandemic. The L-15 aircraft is manufactured by the Aviation Industry Corporation of China and can perform both, air defence and ground attack missions. Senior experts say that this is the best model of advanced trainers in China with diverse combat missions that could be of use to the Middle Eastern countries. According to Global Times, China hopes to attract more consumers from the region through such exhibitions since the countries there are ready to procure high-level equipment. (Cui Fandi, “China’s L-15 advanced jet trainer showcased at Dubai Airshow, reflecting nation’s attention to Middle East arms market,” Global Times, 14 November 2021)

China’s Cyberspace Administration issues regulation on data security
On 14 November, the Cyberspace Administration of China issued a notice on data security by China’s cyberspace regulators. According to the draft regulation, “China is mulling establishing a hierarchical data classification management and protection system” reported Global Times. The highlight of the regulation is that “China will establish a hierarchical data classification management and protection system.” The regulation consists of nine chapters classified into three categories- general, important, and core. They are based on “degrees of impact on and significance to national security, public interests or the legitimate rights and interests of individuals or organizations.” (“China mulls hierarchical data classification management and protection system,” Global Times, 14 November 2021)

ECONOMY
Beijing Stock Exchange launches with 81 firms setting a milestone
On 15 November, the Beijing Stock Exchange was officially launched with 81 firms. Its launch comes 75 days after the announcement in September. The initiative is hailed as a platform to serve innovation-centric smaller businesses. It was opened with a short opening ceremony in the financial street in Beijing. The new exchange was unveiled by Yi Huiman, chairman of the CHina Securities Regulatory Commission. The shares of initial 81 firms opened higher and recorded 282.28 per cent benefits. The opening up of this new exchange marks the undergoing reform and development of China’s capital market. (“Beijing Stock Exchange launches with 81 firms, a milestone in China's capital market,” Global Times, 15 November 2021)

REGIONAL
Chinese observers slam India’s plan to deploy BrahMos missile
On 14 November, Global Times reported that the Chinese observers have slammed Indian government’s plan of deploying the BrahMos missile. On 12 November, India TV news reported that the Indian government is backing the Char Dham project for "wider roads are needed to transport missiles like the BrahMos and other military equipment." BrahMos is the most advanced supersonic cruise missile and represents India’s nuclear capability. Qian Feng, director of the research department at the National Strategy Institute at Tsinghua University, told the Global Times that, “The deployment of the BrahMos can be interpreted as India's pretense of taking a tough stand over the matter, contrary to the fact that the two sides both emphasize the need to address the border issues through peaceful talks.” (“India's plan to deploy BrahMos missile escalates border tension, but of no actual threat: observers,” Global Times, 14 November 2021)

Afghan Ambassador calls upon Beijing to expand trade hoping to ease the humanitarian crisis
On 14 November, Bloomberg published a report on the interview of Ambassador Javid Qaem, Afghanistan’s top diplomat at the embassy in Beijing. The ambassador told Bloomberg News, “This is what we really expect from China and the humanitarian assistance is on one side, but because China is a very good market - and it's a very big market - what we really expect is trade.” Qaem called upon Beijing to help Afghanistan to let in more of its agricultural products and expand trade to ease the humanitarian crisis in Kabul. China has pledged 200 million yuan in assistance to Kabul which includes food supplies and COVID-19 vaccines. Qaem declared that “We need assistance - the people need assistance and they need it soon and It shouldn't be only pledges.” (“Afghan Envoy Urges China to Open Trade to Ease Crisis,” Bloomberg, 14 November 2021)