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China

Malign or benign? China–US strategic competition under Biden

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The front page of the Southern Weekly newspaper shows a picture of Donald Trump and Joe Biden at a newsstand in Beijing, China, 9 November 2020 (Photo: Reuters/Thomas Peter).

Author: Jia Qingguo, Peking University

In late 2017 China–US relations shifted dramatically when the Trump administration officially labelled China a strategic competitor. For various reasons the Democrats seem to have accepted this label. Many believe strategic competition will continue to define the relationship under the Biden administration, though its understanding of strategic competition may be quite different from the Trump administration’s.

China–US strategic competition under the Trump administration was rather malign. First, it was a competition to undermine rather than outperform the other. The Trump administration trashed the engagement policy that previous US administrations — both Democrat and Republican — adhered to after the normalisation of China–US relations in 1979. It devoted much energy to smearing China, accusing Beijing of trying to destroy freedom and democracy and dominate the world through territorial expansion and diplomatic coercion. To this end, the Trump administration pressured other countries to work with the United States to contain China.

Many in China, both in and outside the government, believe that China should not tolerate this. They argue that what the United States wants from China is not just its money but its life (bujin yaoqian, erqie yaoming). That leaves China no alternative but to fight for its existence. So China pushed back on a range of issues, including human rights, Hong Kong, the South China Sea and Taiwan.

Second, China–US strategic competition under the Trump administration was one where the end justified the means. To rally domestic and international support to contain China, the administration spread lies and misinformation. It branded COVID-19 the ‘China virus’, claimed that China’s Belt and Road Initiative is a debt trap and that China’s economic growth is the result of theft of American technologies and unfair economic policies.

Some Chinese retaliated, presenting the United States as a vicious monster constantly stoking conflicts overseas to advance its selfish interests in the name of defending freedom and democracy. One Chinese senior diplomat alleged that a US military lab was responsible for the COVID-19 outbreak. This trading of barbs deepened the mistrust and hostility between the two countries.

Finally, it was lose–lose competition. The trade war initiated by the Trump administration left many factories closed and many people unemployed in both countries. American consumers are paying more for imported goods. The technology war saw high-tech companies from both countries bleeding. The two countries found it difficult to cooperate on anything, even on the response to the COVID-19 pandemic.

Both countries imposed sanctions on each other’s companies and officials, closed down each other’s consulates, traded insults and attacks, and suspended most official channels of communication. The two countries’ warships and military aircrafts tried to out-manoeuvre each other in close proximity in the South China Sea and the Taiwan Strait, escalating the risk of an accidental military clash.

Is this the kind of strategic competition in which the Biden administration wants to engage? On the surface, it appears so. Senior US officials recently stated in congressional hearings that they believed the Trump administration was correct to take a tough approach towards China. They claim that the Biden administration will work with US allies to put pressure on China. The prelude to top officials’ talks in Alaska last weekend seemed also to reflect these ways of thinking.

But closer analysis suggests that despite the tough rhetoric, the Biden administration’s understanding of the strategic competition may be quite different from that of the Trump administration.

Biden appears to favour a strategic competition to outperform rather than to undermine the other. At home, it promises to focus on issues like restoring unity, freedom and democracy, investing more in education and science, and reversing the trend of economic polarisation that has frustrated and angered many Americans.

Overseas, the Biden administration claims that it will try to restore relations with US allies and rally international support to tackle global challenges, including the COVID-19 pandemic, economic recovery and growth, and climate change. While accepting that some aspects of China–US relations are increasingly adversarial, the new US administration also argues that the two countries share important interests in other aspects, providing opportunities for

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Trends and Future Prospects of Bilateral Direct Investment between China and Germany

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China and Germany experienced a decline in direct investment in 2023 due to global economic uncertainty and policy changes. Despite this, China remains an attractive destination for German FDI. Key industries like automotive and advanced manufacturing continue to draw investors, although FDI outflows from Germany to China decreased by 30% in the first three quarters of 2023. Despite this, the actual use of foreign capital from Germany to China increased by 21% in the same period according to MOFCOM. The Deutsche Bundesbank’s FDI data and MOFCOM’s actual use of foreign capital provide different perspectives on the investment trends between the two countries.


Direct investment between China and Germany declined in 2023, due to a range of factors from global economic uncertainty to policy changes. However, China remains an important destination for German foreign direct investment (FDI), and key industries in both countries continue to excite investors. We look at the latest direct investment data between Germany and China to analyze the latest trends and discuss key factors that could shape future business and commercial ties.

Direct investment between China and Germany has undergone profound changes over the past decade. An increasingly complex investment environment for companies in both countries has led to falling two-way FDI figures in the first three quarters of 2023, in stark contrast to positive trends seen in 2022.

At the same time, industries with high growth potential, such as automotive and advanced manufacturing, continue to attract German companies to China, and high levels of reinvested earnings suggest established firms are doubling down on their commitments in the Chinese market. In Germany, the potential for electric vehicle (EV) sales is buoying otherwise low investment among Chinese companies.

According to data from Deutsche Bundesbank, Germany’s central bank, total FDI outflows from Germany to China fell in the first three quarters of 2023, declining by 30 percent to a total of EUR 7.98 billion.

This is a marked reversal of trends from 2022, when FDI flows from Germany to China reached a record EUR 11.4 billion, up 14.7 percent year-on-year.

However, according to China’s Ministry of Commerce (MOFCOM), the actual use of foreign capital from Germany to China increased by 21 percent year-on-year in the first eight months of 2023. The Deutsche Bundesbank’s FDI data, which follows standards set by the IMF, the OECD, and the European Central Bank (ECB), includes a broader scope of transactions within its direct investment data, including, broadly, direct investment positions, direct investment income flows, and direct investment financial flows.

Meanwhile, the actual use of foreign capital recorded by MOFCOM includes contracted foreign capital that has been concluded, including the registered and working capital paid by foreign investors, as well as the transaction consideration paid for the transferred equity of domestic investors.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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Manila blasts China’s ‘unprovoked aggression’ in latest South China Sea incident

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China’s coast guard on Saturday fired a water cannon at a Philippine supply boat in disputed waters in the South China Sea, causing “significant damages to the vessel” and injuring its crew, the Philippine coast guard said.

Manila was attempting to resupply troops stationed on a ship at the Second Thomas Shoal, known locally as Ayungin Shoal, when the Chinese coast guard and maritime militia “harassed, blocked, deployed water cannons, and executed dangerous maneuvers against the routine RoRe (rotation and resupply) mission,” said the Philippine National Task Force for the West Philippine Sea.

The West Philippine Sea is the part of the South China Sea that Manila claims as its jurisdiction.

The Chinese coast guard also set up “a floating barrier” to block access to shoal where Manila ran aground an old warship, BRP Sierra Madre, to serve as a military outpost.

The Philippine task force condemned China’s “unprovoked aggression, coercion, and dangerous maneuvers.”

Philippines’ RoRe missions have been regularly blocked by China’s coast guard, but this is the first time a barrier was set up near the shoal. 

The Philippine coast guard nevertheless claimed that the mission on Saturday was accomplished.

Potential consequences

The Second Thomas Shoal lies within the country’s exclusive economic zone where Manila holds sovereign rights. 

China, however, claims historic rights over most of the South China Sea, including the Spratly archipelago, which the shoal forms a part of.

A Chinese foreign ministry’s spokesperson on Saturday said the Philippine supply vessel “intruded” into the waters near the shoal, called Ren’ai Jiao in Chinese, “without permission from the Chinese government.”

“China coast guard took necessary measures at sea in accordance with law to safeguard China’s rights, firmly obstructed the Philippines’ vessels, and foiled the Philippines’ attempt,” the ministry said.

“If the Philippines insists on going its own way, China will continue to adopt resolute measures,” the spokesperson said, warning that Manila “should be prepared to bear all potential consequences.”

Chinese Maritime Militia vessels near the Second Thomas Shoal in the South China Sea, March 5, 2024. (Adrian Portugal/Reuters)

U.S. Ambassador to the Philippines MaryKay Carlson wrote on social media platform X that her country “stands with the Philippines” against China’s maneuvers.

Beijing’s “interference with the Philippines’ freedom of navigation violates international law and threatens a free and open Indo-Pacific,” she wrote.

Australian Ambassador to the Philippines Hae Kyong Yu also said that Canberra shares the Philippines’ “serious concerns about dangerous conduct by China’s vessels adjacent to Second Thomas Shoal.” 

“This is part of a pattern of deeply concerning behavior,” Yu wrote on X.

Edited by Jim Snyder.

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Foreigners in China: 2024 Living and Working Guidelines

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China’s Ministry of Commerce released updated guidelines for foreign businesspersons living and working in China in 2024. The guidelines cover accommodations, visas, work permits, and emergency protocols. It also outlines responsibilities regarding social security premiums and individual income tax obligations. prompt registration for temporary accommodation is required upon arrival.


The updated 2024 guidelines for foreign businesspersons living and working in China, released by the country’s Ministry of Commerce, outline essential procedures and considerations covering accommodations, visas, work permits, and emergency protocols.

On January 25, 2024, China’s Ministry of Commerce (MOFCOM) released the latest version of the Guidelines for Foreign Businessmen to Live and Work in China (hereinafter referred to as the “guidelines”).

The document is divided into four main sections, labeled as:

Furthermore, the guidelines elucidate the regulatory framework governing foreign businessperson’s responsibilities concerning social security premiums and individual income tax obligations.

This article provides a comprehensive overview of the guidelines, delving into their significance and implications for foreign businesspersons in China.

Upon arrival in China, prompt registration for temporary accommodation is required.

If staying in a hotel, registration can be facilitated by the hotel staff upon presentation of a valid passport or international travel documents.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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