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China is playing the US for fools over the spy balloon

The Chinese balloon debacle has shone a light on America's security vulnerabilities, but it has also revealed just how audacious and deceptive the Chinese Communist Party is. As with their reaction to Covid-19's origins, they have brazenly lied from the day that the balloon’s presence was made public. It is abundantly clear that the craft was not a weather balloon, not least because of its uncharacteristically massive size. Yet China opted to construct a tall tale about a wandering weather balloon that somehow ended up over America. Oh, and the balloon over Latin America? That was just another errant storm tracker. Sure, China regrets the mishap, but there is no need to overreact. What makes the lie so extraordinary is that it is so easily debunked.

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Biden’s State of the Union went quiet on China

Joe Biden's meandering State of the Union left out a great many things, as his voice toggled between insincere whisper and frail bellow. The loudest moment of the night was when, going off-script from his prepared remarks, he insisted that really — c'mon, I really mean it! — China's Xi Jinping is being isolated from the world for some reason. https://twitter.com/greg_price11/status/1623157950654078977 "Name me a world leader who would change places with Xi Jinping! Name me one! Name me one!" Biden yelled. The comment had an air of frustration given that the humiliating Chinese spy balloon was fresh in the minds of all on Capitol Hill. "I’ve made clear with President Xi that we seek competition, not conflict," Biden said in his prepared remarks.

Mike Gallagher’s China challenge

Twenty-five years ago, bipartisan American consensus about China was built on hope, spin and money. Despite the trauma of Tiananmen Square and caution about China’s true economic intentions, many believed in the potential of capitalist principles to move the Chinese Communist Party into a more open, less aggressive posture. Henry Kissinger wrote books about it; pundits and think-tank scholars gave speeches about it; Republicans and Democrats alike parroted the line well into the twenty-first century. Tom Friedman even dreamed ambitiously of what the United States could accomplish if only it were willing to be “China for a day.” What followed? As Harold Macmillan put it, “Events, dear boy, events.

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Germany’s Faustian entanglement with China

Back in November, German Chancellor Olaf Scholz met with Chinese Communist Party (CCP) chairman Xi Jinping. His visit to China was the first by a G7 leader in three years. Facing heated domestic and international pushback, Scholz framed his visit as an effort to “further develop” economic cooperation between Berlin and Beijing. In this context, such “further development” means further cementing Germany’s Faustian bargain with China, one in which European-based players, like Airbus and Volkswagen, claim immediate revenue — but at their long-term expense and at great strategic cost.

Why China’s budding relationship with the Saudis spells trouble

Joe Biden’s chickens are coming home to roost as Chinese President Xi Jinping visits Saudi Arabia. The trip itself has not been especially revolutionary. But it is another indication of America’s declining prowess in the region. Xi was given a welcome befitting an ambitious leader (and notably different from how Biden was greeted in July). Beijing and Riyadh signed numerous economic agreements worth about $29 billion in total, including with Huawei, which will only further the Chinese technology giant’s control over global telecommunications infrastructure. Xi also advanced his desire to make the yuan a competitor to the dollar in the global economy, pushing for the use of the yuan in the oil trade with Saudi Arabia.

The Biden-Xi meeting was long overdue

The bilateral relationship between the United States and China is arguably the most important in the world today. The two countries make up approximately 42 percent of the world’s economic output and more than half of global military expenditure (at $801 billion, the US share of that total dwarfs China’s). The Biden administration’s recently released National Security Strategy names China as "the only competitor with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do it." The central objective from Washington’s standpoint is to compete vigorously with Beijing, prevent China from attaining hegemonic status in the Asia-Pacific, and ensure this competition doesn’t slide into conflict.

WaPo calls out Biden’s lies with ‘Bottomless Pinnochio’ award

Cockburn’s monocle popped out of his head and plopped into his oatmeal yesterday morning as he perused the Washington Post. “A Bottomless Pinocchio for Biden — and other recent gaffes,” read the headline. Surely “gaffe” has come to mean “lovable quirk” when applied to Democrats? And “Pinocchio” must refer somehow to the way in which Italian puppets are marginalized? But no — the Post straight-up published “a roundup of some of the president’s recent errors of fact” and reiterated, a day before the midterm elections mind you, the “gaffe machine” nickname Joe Biden gave himself. First on the Post’s fact-check list is Biden’s repeated claim that he “spent a lot of time — more time with Xi Jinping than any other head of state.

Xi’s nuclear warnings are a coup for Scholz

From our UK edition

Checks and balances on Vladimir Putin don’t come from inside Russia. The people around him supported forced mobilisation, pushed his plans to annex eastern Ukraine, and wanted more nuclear posturing. Xi Jinping and Narendra Modi, of China and India, can do a much better job at constraining Putin. They’re the only two leaders of major powers that haven’t completely ostracised the Russian leader. He needs them to keep his struggling economy afloat. The pair are putting pressure on the Putin to avoid nuclear conflict. This morning, Xi warned Putin off using nukes for the first time, after saying in February that China and Russia’s friendship had ‘no limits’.

America’s military isn’t ready for a war with China

China’s 20th Party Congress concluded on October 23, and President Xi Jinping secured a norm-breaking third term as leader of the Chinese Communist Party (CCP). With the Politburo Standing Committee stacked with close confidants and dissent virtually wiped out, Xi is the strongest he has ever been. Xi has also redoubled the Party’s commitment to taking the island of Taiwan, by force if necessary. Secretary of State Antony Blinken recently said that China “was determined to pursue reunification on a much faster timeline.” The alarm has been repeatedly sounded by American military officials, with speculation that a Chinese invasion of Taiwan could occur as soon as 2023.

Welcome to the age of nuclear blackmail

Vladimir Putin’s recent announcement that he was not bluffing about using nuclear weapons against the West in his war on Ukraine is one of the strongest indications yet of the risks the liberal world now faces in opposing authoritarian aggression. In the face of Russian aggression, or in committing the United States to defending Taiwan, as President Joe Biden did yet again recently, Washington and its partners face the possibility of direct confrontation with the world’s most powerful, nuclear-armed militaries. For the first time in a generation, Western powers risk being checked by adversaries willing to threaten massive conventional and nuclear warfare. The era of cost-free intervention to uphold the liberal world order is over.

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The US knows the main threat is China

From our UK edition

China's President Xi Jinping opened the CCP’s 20th party congress by doubling down on four key issues: no let up on zero-Covid; no renunciation of force when it comes to Taiwan; a promise to build up China’s military strength; and no tolerance of any opposition to his rule. As he enters his third term, the most important new challenge he has to address are the export controls announced by the US on the eve of the congress that threaten to undercut China’s ability to develop semiconductors and supercomputers. Xi remains defiant: he promised to ‘resolutely win the battle in key core technologies.

Joe Biden has jolted China

From our UK edition

The chip war between China and America is heating up, with an increasingly assertive Joe Biden battling with Xi Jinping as he enters his third term as Chinese leader. The US last week further restricted China’s access to advanced American know-how, in what were some of the most stringent export controls for decades. Xi didn’t mention semiconductors in a speech on Sunday marking the opening of the Communist party’s twice-a-decade congress in Beijing, but he did pledge that China would ‘resolutely win the battle in key core technologies’. To compete with the US, China will need better tech. These new export controls will make Xi’s vision much harder to achieve.

It’s time for the US to revoke China’s ‘normal trade’ status

In April 2022, six weeks after Moscow’s invasion of Ukraine, President Biden signed legislation to suspend Russia’s Permanent Normal Trade Relations (PNTR) status. “Revoking PNTR from Russia,” he said, “is going to make it harder for Russia to do business with the United States… The free world is coming together to defeat Putin.” PNTR status, also known as Most Favored Nation (MFN) status, is a designation granted among World Trade Organization members. Receiving nations are awarded all trade advantages that any other nation receives. Revoking PNTR status from Russia was a strategic move. It opened the door to deliver comprehensive economic strikes against Moscow and sent a clear signal to markets.

America’s chip war with China

There is a joke in Taipei that if China invades Taiwan the best place to shelter is in microchip factories, the only places the People’s Liberation Army can’t afford to destroy. The country that controls advanced chips controls the future of technology — and Taiwan’s chip fabrication foundries (“fabs”) are the finest in the world. Successful reunification between the mainland and its renegade province would give China a virtual monopoly over the most advanced fabs. Given that Xi Jinping has made clear his intention to take control of Taiwan by 2032, it is no wonder that the American government is worried about the concentration of cutting-edge semiconductor technology on the island.

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Is Amazon’s newest competitor a Trojan horse for China?

Chinese e-commerce is synonymous with one company: Alibaba. With a market cap of $400 billion, the multinational tech giant is responsible for 80 percent of online sales in China. Yet while Alibaba is ridiculously popular in China, it’s not popular in the US. It’s notorious, yes, but it’s not popular. That’s why there’s another e-commerce giant trying to penetrate the American market. As TechCrunch’s Rita Liao recently noted, Pinduoduo, a sort of Alibaba 2.0, “has quickly gained momentum for its first international endeavor in the U.S.” Headquartered in Shanghai, the financial capital of China, Pinduoduo recently launched Temu, an American online shopping site. The site, we’re told, seeks to challenge Amazon, the king of online shopping.

Putin and Xi herald a rising authoritarian axis

Russian President Vladimir Putin and Chinese President Xi Jinping met in Uzbekistan during this week’s Shanghai Cooperation Organization (SCO) summit — and a lot had happened since their last meeting. With the Russian Army on the back-foot in Ukraine and its economy forecasted to contract by over 4 percent in 2022, Putin is in a far worse position. Whether this impacted the meeting is hard to tell, though Putin indicated that Xi had “questions and concerns about [Ukraine].” Nevertheless, both countries expressed support for one another, touching on their respective concerns. Xi stated that China wanted to work with Russia “to set an example of a responsible world power,” a jab at the Western powers that both countries are positioning themselves against.

America is forgetting how to make stuff

Articles about the future and “progress” have been popping up a lot lately, with conversations revolving around the inevitable advancements in technology and automation. Where we should head next is the collective theme. To the metaverse? To outer space itself? But instead of setting our sights on colonizing Mars or creating a perfect alternate reality, we should slow our roll, focus on the here and now and consider whether the frenzied “progress” we’re in such a rush to make has demonstrated any benefit to real-life people. Manufacturing is a good place to start. Let this startling reality sink in, reported in 2017 by the Organization for Economic Co-operation and Development: Between 2000 and 2010, US manufacturing experienced a nightmare.

What has Pelosi’s Taiwan trip wrought?

In becoming the highest-ranking American politician to visit Taiwan in a quarter-century, House Speaker Nancy Pelosi has become the dominant foreign affairs news story of the month, eclipsing, if briefly, Russia’s war in Ukraine. Yet beyond all the sound and fury, Pelosi’s trip changed nothing in the cross-Strait balance of power. What it did was to legitimize the “mission creep” bringing Taiwan and America closer together. Both supporters and critics of the trip were quick to invest Pelosi’s visit with major symbolic significance.

Pelosi is right to put China on notice

House speaker Nancy Pelosi has always had a flair for the dramatic. During the Trump presidency, for example, she ostentatiously tore up his State of the Union speech. But for sheer spectacle, it will be hard for Pelosi to top her “will she, won’t she” visit to Taiwan this week. In spite of the suspense, there was never really any doubt about it. For weeks China has issued dire warnings about the perils of her visit. So, as it happens, have several commentators, including The Spectator’s Freddy Gray, whom I debated on the Americano podcast, and who seems to have a bad case of the collywobbles about the Pelosi trip.

China delayed its 2008 financial crisis until 2022

The year 2008 was consequential by many measures. The collapse of the US investment bank Lehman Brothers sparked a worldwide financial crisis. Yet China appeared to emerge out of it relatively unscratched after Beijing introduced a massive stimulus package in the world, about three times the size of the United States government's rescue program. Thanks to this expansionary fiscal policy and the easy credit that came with it, the Chinese economy quickly returned to its robust growth by growing 8.7 percent in 2009 and 10.4 percent in 2010. After 2008, the Chinese Communist Party leaders concluded that China "escaped" the financial crisis because of its outstanding leadership and the superiority of the Chinese political system over deeply flawed western democracies.