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21. China’s Semiconductors Reflections on Sources and Solutions to an Expensive Problem

Author:
Jonathan Liebenau
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
The semiconductor industry has been a renewed topic of political debate for over three years. Due to recent US sanctions on the most advanced semiconductors, the industry has quickly become another flashpoint in the competition between the US and China to dominate the 21st century’s strategic technologies. In this Strategic Update, Dr Jonathan Liebenau explains the development of the semiconductor industry in the context of China’s rise to become an increasingly capable technology power. China’s sustained efforts in industrial policy to cultivate a domestic innovation system coincided with Western firms’ offshoring strategies since the 1990s, transforming China into a large producer and consumer of semiconductors. While Taiwan and the West retained cutting edge chip design capabilities, Chinese firms such as Huawei and Hikvision have become competitive providers of mobile phones, surveillance equipment and related infrastructure services. Despite Washington and its partners’ conviction to constrain in China’s technological prowess, industrial policy initiatives such as the CHIPS Act will face an uphill battle when it comes to bringing manufacturing capacity back to Western economies. In this context, the UK must combine short term incentives with a longer-term strategic vision to remain competitive in one of the 21st century’s key strategic arenas.
Topic:
Science and Technology, Sanctions, Strategic Competition, Production, and Semiconductors
Political Geography:
China, Asia, North America, and United States of America

22. China’s smart cities and the future of geopolitics

Author:
Valentin Weber
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
In this latest Strategic Update, Valentin Weber explores Chinese scientific research and industry application of smart cities, with ‘city brains’. The geostrategic implications for these complex Chinese smart city construction projects outside of China – particularly surrounding surveillance and artificial intelligence – and a potential future ‘world digital brain’ must be considered by policymakers, even if we are far away from an eventual bifurcation of the global internet.
Topic:
Science and Technology, Geopolitics, Surveillance, Artificial Intelligence, and Smart Cities
Political Geography:
China and Asia

23. Countering United Front Work: Taiwan’s Political Warfare System

Author:
Mariah Thornton
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
This strategic update introduces the challenges posed by China’s united front work, which has significantly expanded due to unprecedented institutional elevation and support under Xi Jinping. Mariah argues that Taiwan—a country that has effectively resisted China’s united front activities for several decades—can serve as an instructive case for other democratic countries in institutionalising counter-interference operations. The briefing initially explores the origins of Taiwan’s political warfare system, its evolution from the martial law era to democratisation in the 1990s, and how this history informs the institution’s modern structure and operations. The information presented in this report was compiled during a period of fieldwork in Taiwan from late September to early November 2022, in which she interviewed dozens of political warfare officers as well as Taiwanese defence and security experts–a majority of whom have chosen to remain anonymous. In the conclusion, Mariah offers broad policy recommendations based on these findings that may be applicable to other countries experiencing united front work activities and or seeking to institutionalise counter-interference operations.
Topic:
Security, Defense Policy, Politics, Public Opinion, Propaganda, and Regional Security
Political Geography:
China, Taiwan, and Asia

24. China’s Global Strategy as Science Fiction

Author:
William A. Callahan
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
Xi Jinping is leading China in a new direction, but how are we to understand his global strategy? For most countries, to understand domestic and international politics we would analyse authoritative sources – leaders’ speeches, official documents and statistics, elite interviews and essays, and public opinion surveys. In the 2000s these methods worked well to probe Chinese politics. But since civil society and independent thought have been severely restricted under Xi, it’s necessary to go beyond such “factual” sources. To understand China’s global strategy, it’s best to read fiction, especially Chinese science fiction. This essay critically analyses Liu Cixin’s novels, The Wandering Earth and the Three Body Problem trilogy, to probe how Chinese sci-fi pushes us to think creatively about key topics: the relation of humans and technology, the relation of science and politics, and the relations between political communities, i.e. are we doomed to existential struggle, or can we engage with difference in creative and productive ways?
Topic:
Foreign Policy, Science and Technology, Grand Strategy, Novels, and Science Fiction
Political Geography:
China and Asia

25. China’s Provinces as Global Actors: Evidence from China-Africa Relations

Author:
Charlotte Lenz
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
With the launch in the early 2000s of China’s ‘Going Global’ Strategy, Chinese provinces became one group of actors participating in China’s South-South relations. In this Strategic Update, Charlotte Lenz investigates the role of Chinese provinces as foreign policy actors and explains their internationalisation strategies, challenging the prevalent perception of China as a unitary actor on the world stage. Drawing on evidence from Africa-China relations, the report identifies two strategies employed by Chinese provinces in pursuit of their foreign policy interests: (1) Formal and informal “twinning” as a collaborative model between central and local actors, wherein central actors design policies and provincial governments execute projects; (2) and “clustering” according to a sectoral logic of investment and diplomacy in which a certain Chinese province engages a certain foreign country. Despite ongoing bureaucratic centralisation under Xi Jinping, provinces continue to pursue their own internationalisation strategies to help meet local economic and employment targets. Understanding their agency, interests and limitations is thus key to deriving a better understanding of China’s evolving global presence.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Investment, and Internationalization
Political Geography:
Africa, China, and Asia

26. Reagan in China: Don’t Say Anything about the Turkeys

Author:
Beatrice Camp
Publication Date:
02-2023
Content Type:
Journal Article
Journal:
American Diplomacy
Institution:
American Diplomacy
Abstract:
Twelve years after President Nixon’s historic opening to China, President Ronald Reagan visited the People’s Republic of China (PRC) in April 1984. The visit was a vast undertaking with an enormous entourage – Ambassador Arthur Hummel was reportedly stunned to hear that the president’s party would number over 800. For a politician like Reagan who had repeatedly criticized President Jimmy Carter for establishing diplomatic relations with Beijing, it was a huge move. For the Chinese, it was a very welcome symbol of acceptance. First lady Nancy Reagan accompanied her husband; some 600 journalists covered the trip. The Reagans toured historical and cultural sites in Beijing and attended a State Dinner at the Great Hall of the People before traveling on to Xian and Shanghai.
Topic:
Foreign Policy, Diplomacy, and Memoir
Political Geography:
China, Asia, North America, and United States of America

27. Secret Baseball in China

Author:
W. Robert Pearson
Publication Date:
08-2023
Content Type:
Journal Article
Journal:
American Diplomacy
Institution:
American Diplomacy
Abstract:
My wife Maggie, our two-year-old son Matthew, and I arrived in China in 1981 as part of a rapidly expanding cohort of American diplomats surging into the country following the formal establishment of diplomatic relations in 1979. We were excited to be in the early wave of American diplomats going back to China after 30 years of separation and enmity. We also were prepared for some difficult times, but could only anticipate what would be facing a young American diplomatic family in Beijing. China was just beginning its ascent from the disaster of the Cultural Revolution, and the reality of the past was all around us. The average annual income in China in 1981 was $100. The Beijing air was thick with coal dust, and our hotel room attracted rats while we waited months for permanent housing. One main dish at a Peoples’ Restaurant we visited was dumplings with coffee grounds. Our Chinese counterparts were both curious and cautious, delighted to be able to engage with us and also making excellent use of the impenetrable bureaucracy as necessary. Washington was eager to make headway, and we, as did many Americans, saw a genuine opportunity to open new doors for shared benefit. The sounds and sights, the scenes and senses were fascinating, and for us every day was challenging. We considered it the most important gamble for American diplomacy in the 20th century.
Topic:
Foreign Policy, Diplomacy, Sports, and Memoir
Political Geography:
China, Asia, and United States of America

28. Is there Eurasian Connectivity without Europe?

Author:
Niva Yau
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
Tucked between Russia, Iran, and China, Central Asia is now desperately looking for solutions to cushion the impacts of global tension on its fragile economies, which are deeply tied to sanctions against Russia and a local production slowdown as China recovers from its zero COVID policy. While European diplomacy has come at a crucial time, its Central Asian policy is ambiguous, and commitments misplaced. Central Asia is continuously perceived by the EU as a region in need of developmental assistance, which leads to European regional policies that focus on digitalization and climate issues. What Central Asia needs is the establishment of concrete logistical connectivity that will enable efficient flow of products across Eurasia.
Topic:
Climate Change, Diplomacy, Economics, European Union, Connectivity, and Digitalization
Political Geography:
Russia, China, Europe, Iran, Central Asia, Eurasia, and Asia

29. A New Approach: Countering China’s War Without Rules

Author:
Rob Spalding
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
To counter Unrestricted Warfare, the West must recognize that Chinese doctrine is no longer confined to accepted parameters, but encompasses the whole of society. This more closely reflects politics, economics, finance, and the media. This also resembles Mao’s conception of the Protracted People’s War, in which political indoctrination and the support of the people became the paramount objective versus military prowess. The idea embraced victory achieved through the wearing down of the enemy. Thus, the doctrine of Unrestricted Warfare seeks to break all the established rules and to weaken from within, using the enemy’s openness to corrupt their political system. Success encourages other nations to adopt rule-breaking to stay competitive. The rule makers will be defeated by their own adherence to the system they built. An effective counter doctrine begins with an acknowledgement that the accepted rules do not apply to the CCP regime.
Topic:
National Security, Ideology, Chinese Communist Party (CCP), and Military
Political Geography:
China and Asia

30. Chinese and Russian Efforts to Undermine the Global Internet

Author:
Justin Sherman
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
Beijing and Moscow’s prevailing term was (and is) cyber “sovereignty.” Underpinning this perspective in China is an emphasis on the importance of “sovereignty” broadly and the importance of multilateralism, where governments are the driver of decision-making, over multistakeholderism (the current global internet governance approach), where academics, members of civil society, companies, and others have a voice alongside governments. The Russian government’s perspective draws on the Russian concept of “information security,” its belief in the importance of “sovereignty” to security, and its officials’ paranoia about “color revolutions” in other countries like Ukraine; Putin believes these events are the result of foreign interference and could occur in Russia. Although there are many general similarities between the two, Chinese and Russian officials do not view the global internet in exactly the same way.
Topic:
Sovereignty, Internet, Multilateralism, and Information Security
Political Geography:
Russia, China, and Asia

31. Why China Is Taking Sides Against Israel—and Why It Will Likely Backfire

Author:
Michael Singh
Publication Date:
11-2023
Content Type:
Commentary and Analysis
Institution:
The Washington Institute for Near East Policy
Abstract:
When news broke of the Hamas attack on Israel last month, the silence from Beijing was conspicuous amid the din of international statements. When the government finally addressed the conflict at a press conference the day after, its words were remarkable for being unremarkable. An unnamed Foreign Ministry spokesperson expressed “deep concern,” called on “relevant parties to remain calm, exercise restraint, and immediately end the hostilities,” and lamented the “protracted standstill of the peace process”—a diplomatic endeavor in which Beijing has never shown more than a passing interest. The wording was nearly identical to China’s reactions during past Gaza conflicts, despite the fact that the circumstances were radically different. Because the brief remarks failed to condemn Hamas or even recognize the scale of the horrors that occurred on October 7, Israeli commentators interpreted them not as neutral, but as hostile. Beijing soon confirmed that interpretation. On October 14, Foreign Minister Wang Yi asserted that Israel’s actions went “beyond the scope of self-defense” and demanded that it stop imposing “group punishment” on Palestinians, while still refusing to condemn Hamas. (For a full listing of Beijing’s official statements on the conflict, see The Washington Institute’s statement tracker.) Chinese media have likewise presented the war as one of Israeli aggression—despite being heavily censored, their early reports were rife with anti-Semitic, anti-Israel commentary claiming that Hamas was defending the two-state solution, even though the group’s past and present actions are patently bent on destroying the Israeli state. Notably, the strident tone in online Chinese commentary moderated in the run-up to President Xi Jinping’s November 15 meeting with President Biden, underscoring the government’s well-established influence over such messaging. This approach is a stark departure from Beijing’s past impassivity toward Middle East conflicts, in which Chinese officials had usually sought to avoid entanglement. Rather, it reflects the government’s new inclination to use far-flung conflicts as opportunities to undermine the United States and score points in the “Global South.” Yet it could also hold longer-term consequences for China, particularly regarding the government’s three-decade effort to improve relations with Israel. In addition, using the current crisis to take potshots at Washington may constrain Beijing’s ability to project impartiality in other regional conflicts.
Topic:
Foreign Policy, Politics, Strategic Competition, and Palestinians
Political Geography:
China, Middle East, Israel, Asia, and Gaza

32. Iraqi Officials Eye a Path for Chinese-Iraqi Development

Author:
Baraa Sabri
Publication Date:
09-2023
Content Type:
Commentary and Analysis
Institution:
The Washington Institute for Near East Policy
Abstract:
Mohammed Shia al-Sudani did not become prime minister in Baghdad as smoothly as desired by the powers close to the “axis of resistance.” Nevertheless, several factors facilitated his rise to power. Domestic concerns, such as Muqtada al-Sadr’s decision to withdraw his bloc from the political process and a push from groups close to Iran to put forward a prime minister with relative acceptance in the regional and international community, played a role. But these considerations compounded with the climate of regional tensions and interests of outside powers—competition between the Gulf and Iran, concerns over the ongoing repercussions of the strained relationship with Washington caused by the Trump administration, and the growing dominance of various armed groups close to Tehran. This precarious reality and confused relationships likewise seem to have driven al-Sudani’s government to attempt to circumvent the traditional binary choice between Washington, the West, and most of the Gulf states on the one hand, and Tehran, Damascus, Lebanon, and their backer Moscow on the other. This new course comes with a distinct and flashy name, the “Development Road” project, and looks to Beijing as a third way forward. Iraq’s political realignment is in large part a response to Iraqis’ shifting views of the United States and the broader geopolitical space: the haphazard American withdrawal from Afghanistan, the political changes in U.S. policy under Biden, the failure to revive the nuclear agreement with Iran, the stagnation in the Syrian issue, Erdogan’s steadfast support of Putin, Russia’s continued attacks on Ukraine, economic movement linked to oil prices, inflation, and financial turmoil in currency rates from Cairo to Tehran, fears of harsh economic sanctions, and, finally and most importantly, the economic rise of China.
Topic:
Foreign Policy, Development, Multilateralism, and Strategic Competition
Political Geography:
China, Iraq, Middle East, and Asia

33. Examining China’s Grand Strategy For RISC-V

Author:
Sunny Cheung
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On November 24, 2023, DAMO Academy (達摩院; literally “Dharma”), Alibaba’s research division, unveiled three ground-breaking processors rooted in the open-source RISC-V architecture. The Xuantie (玄铁) C920, Xuantie C907, and Xuantie R910 processors promise to accelerate application of RISC-V technology into diverse sectors, from autonomous vehicles and artificial intelligence (AI) to enterprise hard drives and network communications (Mydrivers News, November 24). These processors signify a strategic attempt by the People’s Republic of China (PRC) to break out of the technological containment led by the United States through leveraging open-source hardware (OSHW). RISC-V products are proliferating around the world at a compound annual growth rate of 40 percent. Projections suggest that by 2030, RISC-V chips could attain a 25 percent market share in the system-on-chip (SoC) sector (WSJ, December 14). RISC-V therefore has a pivotal role in shaping the future of the industry. The Chinese government’s rapid, focused, and coordinated investment in RISC-V suggests that a closer examination of this understudied and emerging technology is warranted, especially in light of the limited policy coordination and discussions around RISC-V in other countries, particularly the United States.
Topic:
Science and Technology, Grand Strategy, Artificial Intelligence, and Research and Development
Political Geography:
China and Asia

34. CCP Ideological Indoctrination, Part 1: The PRC’s New “Patriotic Education Law”

Author:
John Dotson
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On October 24, the People’s Republic of China (PRC) National People’s Congress (NPC) Standing Committee (全国人民代表大会常务委) officially codified the country’s existing initiatives for “patriotic education (PE; 爱国主义教育)” by promulgating the People’s Republic of China Patriotic Education Law (中华人民共和国爱国主义教育法). This mandates indoctrination in state-directed ideological content throughout all sectors of society (PRC Government, October 25). While CCP policy documents are always more important than formal PRC law, the Party-state does use formal laws passed by the National People’s Congress (全国人民代表大会) to codify and emphasize Party policies. This law appears to be no exception. [1] The unveiling of the new Patriotic Education Law has been accompanied by a campaign of predictably laudatory coverage in PRC state media. For example, the CCP mouthpiece People’s Daily ran a flowery editorial that quoted a professor from the China University of Political Science and Law as stating that “implementing the patriotic education law will enhance the daily practice of patriotic spirit” among the Chinese people. The editorial itself opined that the NPC had, “on the basis of the rule of law, promoted and guaranteed New Era patriotic education, inspiring the nation’s spirit, concentrating the people’s strength, advancing the building of a strong country [and] national revival with extremely significant and profound meaning” (People’s Daily, November 23). Such coverage has appeared alongside other official messaging emphasizing the need for enhanced focus on ideological instruction. For example, the mid-October issue of the CCP’s official journal Qiushi (求实) was a themed issue focused on ideology. It featured a lead article under Xi’s name titled “Open New Frontiers for the Sinicization and Modernization of Marxism.” It also included a list of articles on supporting themes, such as a Central Party School article titled “In the New Era and New Journey, Unceasingly Advance the Party’s Innovations in Theory” (Qiushi, October 16).
Topic:
Education, Law, Ideology, Political Parties, Chinese Communist Party (CCP), and Indoctrination
Political Geography:
China and Asia

35. PLA Air Force Increases Flexibility of Combat Support Units

Author:
Derek Solen
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In early November, the Chinese People’s Liberation Army (PLA) published photographs of army helicopters taking off from an “air force station” of the Eastern Theater Command during a “trans-regional operation” in late October (China Military Online, November 10). “Air force station” likely refers to the “field station” or combat support unit that services the airbase from which the helicopters took off. The photographs visually substantiate an article from June in which it was reported that all the field stations of an unspecified air defense base of the Eastern Theater Air Force had developed the capability to conduct joint combat support. The report mentioned that the field stations were servicing aircraft of various types from different services, even including a vignette of one field station conducting “combat sustainment” for an army helicopter in addition to servicing fighters and special mission aircraft (PLA Daily, June 16). The field stations’ actual joint combat support capability is likely to be nascent, but it rests on a foundation of greater flexibility that the field stations have achieved over the past decade to operate outside their routines and to service various types of aircraft. That foundation should also make the combat support units of the PLA Air Force (PLAAF) a more resilient force that is better able to support agile aviation units.
Topic:
Armed Forces, Air Force, and People's Liberation Army (PLA)
Political Geography:
China and Asia

36. Contradictions Within The PRC’s Climate Strategy

Author:
Arran Hope
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The 28th Conference of the Parties of the United Nations Framework Convention on Climate Change (COP28) drew to a close earlier this week (UNEP, December 13). The COP meetings always produce a mixture of successes and disappointments, and only constitute a portion of the myriad processes that impact the global energy transition and race to stabilize the planetary system. This year’s conference was no different. The People’s Republic of China (PRC) was actively engaged throughout, hosting a variety of events at their pavilion reflecting the breadth and depth of the country’s critical engagement with the issues (National Climate Strategy Center, November 28). However, the PRC’s is still appraised as falling far short of what is required to meet the Paris climate goals and is not commensurate with its position in the international system (Climate Action Tracker, November 22). This year, the PRC ranks first in the world for total annual emissions, and second in both cumulative (historical) emissions and GDP. Meanwhile, it has failed to advance its ambitions or provide leadership to match its rhetoric of being—to use Xi Jinping’s words from his Party Congress speech—an “important participant, contributor, and torchbearer” in addressing climate change (Xinhua, November 3, 2017). The PRC delegation constituted the joint-third largest at the conference, and was led by Zhao Yingmin (赵英民), vice-minister at the Ministry of Environment and Ecology (MEE). Also present were minister Huang Runqiu (黄润秋), special climate envoy Xie Zhenhua (解振华), and UN under-secretary-general for economic and social affairs Liu Zhenmin (刘振民), who is expected to replace Xie as he steps down after 25 years as the PRC’s top climate negotiator. Crucially, Executive Vice Premier Ding Xuexiang (丁薛祥), a Politburo Standing Committee member who holds real power over China’s climate policy (in a way that the MEE officials do not), also attended.
Topic:
Climate Change, Development, and Carbon Emissions
Political Geography:
China and Asia

37. The Sino-French Relationship At 60: China’s Losing Bet On A Reset

Author:
Juliana Bouchard
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Against a background of increasingly fraught relations with the European Commission, China has been doubling down on its outreach to member states, with France chief among them. The two countries have been gearing up to the 60th anniversary of their bilateral relationship in January 2024 with a flurry of diplomatic exchanges. These have included high-level visits by President Emmanuel Macron in April, Economic Minister Bruno Le Maire in July, diplomatic adviser Emmanuel Bonne in late October, and most recently Foreign Affairs Minister Catherine Colonna (FMPRC, November 22). On the Chinese side, Premier Li Qiang traveled to Paris in June to take part in the Summit for a New Global Financing Pact. However, this year also saw Paris deal some blows to China’s economic ambitions, with Macron being one of the driving forces behind Brussels’ ongoing anti-subsidy investigation into China-made electric vehicles and revamping its own EV purchase credits to exclude Chinese-made models (Service Public, October 10). During Bonne’s visit, Wang Yi framed his expectations for the anniversary in no uncertain terms, calling on China and France to “revisit the original intention (重温建交初衷)” of their bilateral ties and “consolidate and reset (巩固和再出发) the relationship” (FMPRC, October 30). Paris’ appetite for meeting Beijing halfway in “resetting” the relationship is far less certain. Most likely, China’s lofty ambitions for a reset will be met with more ambiguity from France, continuing its diplomatic outreach to safeguard economic opportunities in China, all the while pushing for more assertive policies within Brussels to achieve its vision of “strategic autonomy.” While some scholars are not entirely immune to the “dual-faced (两面性)” nature of French diplomacy (Fudan Development Institute, March 2), a prevalent view—or hope—among officials in Beijing is that Macron’s vision of strategic autonomy is primarily about asserting an independent foreign policy from the United States. However, in reality, strategic autonomy also informs France’s own de-risking agenda toward China.
Topic:
Foreign Policy, History, and Bilateral Relations
Political Geography:
China, Asia, and France

38. Decoding China’s Dilemma: The Difficulties Of Economic Reform

Author:
Sunny Cheung
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On November 27, the State Council of the People’s Republic of China (PRC) unveiled a new policy, titled “Notice on Strengthening Financial Support Measures for the Private Economy (关于强化金融支持举措 助力民营经济发展壮大的通知)” (People’s Bank of China, November 27). The notice introduces a set of 25 measures crafted to reinvigorate the private sector. These prioritize key areas such as technological innovation, green initiatives, and primary support for small to medium-sized enterprises. The package includes increasing financial assistance and gradually enhancing the proportion of loans to private businesses. It underscores the importance of facilitating credit, lowering interest rates, issuing bonds, and other kinds of financial instruments to meet the varied financing needs of private enterprises. This policy measure echoes mandates put forth during the 20th Party Congress in October 2022 and Central Financial Work Conference held at the end of October 2023 in response to China’s deepening economic woes (Xinhua, November 1). This backdrop has prompted policies aimed at addressing the challenges facing the Chinese economy. In October, the PRC National Bureau of Statistics announced that the Consumer Price Index (CPI) fell by 0.2 percent year-on-year—worse than expected and marking a contraction since July (RTHK, November 9). This ominous data, which includes price deflation for both July and October this year, is indicative of significant weakness in domestic demand, particularly due to the underperforming real estate market, which affects citizens’ expectations for asset prices. The ongoing economic downturn in China also refutes the notion that economic chaos would clear up after the abandonment of the Zero-Covid policy. This situation is also similar to the Japan-style recession in the 90s in which consumption and investment are further repressed in favor of paying down debt. China’s recent response has been to implement a series of economic stimulus measures in an attempt to revive its weakening national economy.
Topic:
Economics, Reform, Business, and Banking
Political Geography:
China and Asia

39. Moonshot vs. Long March: Contrasting the United States’s and China’s Space Programs

Author:
Katherine Kurata and David Lin
Publication Date:
11-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On the morning of November 2, 2023, the Gobi Desert’s silence was shattered: From a remote launchpad at the Jiuquan Satellite Launch Center (中国酒泉卫 星发射中心), the Hyperbola-2 (双曲线二号), a slender rocket bearing the iSpace emblem (星际荣耀), surged upwards, before gracefully alighting back on Earth (iSpace WeChat, November 2; CNSA, November 2). This suborbital hop marked a major achievement for iSpace as the company progresses towards developing reusable medium-lift rockets. The test demonstrated key technologies like the methalox engine and landing capabilities that will enable iSpace’s larger reusable rocket plans with Hyperbola-3. In China’s rapidly growing commercial space industry, iSpace, alongside other ambitious startups like Galactic Energy (星河动力), CAS Space (中科宇航探索技术), and Deep Blue Aerospace (深蓝航天), are striving to replicate the success of American pioneers such as SpaceX (Galactic Energy WeChat, July 24; CAS Space WeChat, April 4; Deep Blue Aerospace WeChat, May 7, 2022). Their goal: to revolutionize orbital access with reusable rocket technology. The success on November 2 was more than an engineering accomplishment; it was a testament to China’s emerging “innovation power”—its capacity to create, adopt, and seamlessly integrate new technologies (Foreign Affairs, February 28; US House of Representatives, May 17). This successful launch marks not just a step forward in technological capability but also a strategic shift in the global space race. With a unique mix of state guidance and entrepreneurial zeal, China is charting an alternate path in space exploration, contrasting sharply with the United States’s focus on private sector innovation. As the United States and China advance their respective space programs, their differing approaches are reshaping the landscape of space leadership. While America champions private sector innovation, China exerts centralized state control. Yet amidst an increasingly congested orbital environment, it is clear that the future trajectory of space exploration hinges not solely on innovation itself, but specifically on the capacity for nations to effectively combine government direction with commercial dynamism. The country that strikes this balance will harness the strengths of both its public and private sectors to accelerate advancement, and will be positioned to spearhead humanity’s future in the final frontier.
Topic:
Science and Technology, Space, Innovation, and Public-Private Partnership
Political Geography:
China, Asia, North America, and United States of America

40. China and Nicaragua’s Deepening Embrace

Author:
Scott B. MacDonald
Publication Date:
11-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In October 2023, Nicaragua signed an agreement with China’s CAMC Engineering Company (中工国际工程) for the reconstruction, expansion, and upgrading of the Punta Huete International Airport (Yicai, October 18). The company is a subsidiary of the conglomerate China National Machinery Industry Corporation (国际集团), also known as Sinomach (Sinomach, accessed November 15). Local and Chinese officials are touting the $492 million project as part of China’s Bridge and Road Initiative (BRI), reflecting a deepening of Daniel Ortega’s regime’s ties to the People’s Republic of China (PRC) (Global Times, October 18). Closer links between Beijing and Managua demonstrate that China’s economic statecraft remains central to its strategy to further penetrate Latin America and the Caribbean, a region of significant geopolitical importance to the United States. The sustainability of China’s economic statecraft, and BRI in particular, have come into question in recent months due to the country’s domestic economic problems. However, the Nicaraguan airport announcement signals that the PRC remains economically active in the region, and its ambitions have not wavered. This is something of which the remaining handful of countries that officially recognize Taiwan are well aware: Beijing’s attention to regional infrastructure continues, if more selectively than before, but only to those countries who have decided to forgo relations with Taiwan. Beijing is further extending its reach into the strategic underbelly of the United States. For Nicaragua, the restoration of diplomatic ties with China serves the geopolitical needs of President Daniel Ortega in distancing his regime from the United States and softening the blow of sanctions (imposed due to fraudulent elections and gross human rights violations), while providing a source of non-Western funds to finance infrastructure projects.
Topic:
Foreign Policy, Bilateral Relations, Infrastructure, and Economy
Political Geography:
China, Asia, Central America, and Nicaragua