China
Xi-Putin meeting: here’s what it says about their current, and future, relationship
Vladimir Putin may visit China on October 17 for the Belt and Road Initiative’s anniversary, potentially solidifying Russia’s junior partnership with China amidst changing global dynamics and weakened Russian influence.
Vladimir Putin is expected to travel outside the borders of the former Soviet Union for the first time in 20 months to meet China’s Xi Jinping on October 17. The visit, if it happens, is likely to entrench a relationship in which Russia has become a useful tool in a broader Chinese strategy to consolidate its influence in Europe and the Americas.
The occasion of Putin’s likely trip to Beijing is the tenth anniversary of the Belt and Road Initiative (BRI), an ambitious Chinese project to expand global trade routes with other nations and extend transport and infrastructure links.
To mark this event, China’s president, Xi Jinping, will host representatives from some 130 countries in Beijing on October 17 and 18.
Putin is likely to be the star guest. According to Russian sources in September, Putin accepted Xi’s invitation, although Beijing has refused to confirm this.
The two presidents would undoubtedly have lots to discuss. Since they announced their no-limits partnership in February 2022, just before Russia’s full-scale invasion of Ukraine, the world has dramatically changed and keeps changing.
Instability has gripped the South Caucasus and the Middle East – both areas where Russia and China have interests at stake.
Yet their no-limits partnership has become a much more one-sided affair. Where Moscow and Beijing may once have coordinated their approaches, it is now likely that Russia aligns its policies to suit Chinese interests. The Ukraine war has weakened Russia and diminished its influence, at least for now, not only in the Middle East and the South Caucasus but also in central Asia. This has allowed China to become the dominant power there and cement its ties with the region.
Though now clearly a junior partner to Xi, Putin’s expected trip to Beijing still signals that Russia and China share a common agenda when it comes to ending a western-dominated international order and curtailing US and European influence in what both view as their zones of privileged interest across Eurasia.
Russia keeps emphasising alignment with China, not least because it has few other options except international pariah states such as North Korea and Iran.
Western sanctions against Russia in response to Moscow’s war against Ukraine have severely reduced trade along the New Eurasian Land Bridge (an overland rail link between China and Europe), once a major transport corridor for Chinese exports to European markets.
Instead, transport routes avoiding Russia have gained in importance, including the Middle Corridor linking China across central Asia, the Caspian Sea and the South Caucasus to the EU. This has also dented Russian hopes of closer integration between the BRI and Moscow’s post-Soviet economic integration initiative, the Eurasian Economic Union (EAEU).
While the fact that Putin received an invitation from Xi to come to Beijing is important, it is also noteworthy that this is not a purely bilateral affair. In contrast to Xi’s visit to Moscow in March 2023, Putin’s trip will at best offer the Russian president an opportunity for talks with Xi in the margins of a summit designed to celebrate the BRI, a project closely associated with Xi personally.
A cargo ship from countries related to the Belt and Road Initiative docked at Qingdao Port in Shandong province, China, on October 11 2023. China is holding a summit marking 10 years since the launch of the BRI.
Sipa US/Alamy
Also, China has, and pursues, other options in its foreign relations. There is still a possibility of a meeting between US president Joe Biden and Xi at the Apec summit in San Francisco in November. And the EU’s foreign policy chief, Josep Borrell, visited China, possibly to prepare of an EU-China summit later this year.
What Xi wants to achieve
None of this implies that Xi is about to drop Putin as an ally. The key question is how Xi will balance his support for Putin with his need to stabilise relations with the US and prevent large-scale European “de-risking” – limiting technology exports to China, scrutinising investment from China, and decreasing dependency on China-only supply chains – that would further limit the access to EU markets for Chinese goods, services and capital.
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Israel-Gaza conflict: an opportunity for Putin while the world is distracted
Given the increasingly apparent conflict fatigue among Ukraine’s western partners and the likely benefits that Putin will reap from the current violent escalation in the Middle East, Xi is unlikely to disown Putin.
He may, however, see an opportunity to facilitate a settlement more on Russia’s terms than on Ukraine’s – a face-saving way out for Putin to claim victory that restores a modicum of stability across a region that remains crucial for the long-term success of the BRI and ultimately for China’s superpower aspirations.
If Xi were to pull this off, it would also cement China’s role in a future Euro-Atlantic and Euro-Asian security order.
While this would simultaneously turn Russia into a possible permanent second-order power in China’s shadow. It might also be Putin’s best hope of avoiding the humiliation of a never-ending war. That prospect, however, remains firmly on the cards, especially if China and the west maintain their current levels of support for Russia and Ukraine, respectively, which offers just enough for either side to avoid defeat.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
China
Navigating Turbulent Waters: Trust Between China and the Philippines
Despite a July 2024 deal ensuring Philippine resupply missions at Second Thomas Shoal, tensions with China persist, marked by confrontations and deep distrust, indicating potential for future conflict escalation.
Ongoing Tensions in the South China Sea
Despite a July 2024 agreement facilitating uninterrupted resupply missions to the contentious Second Thomas Shoal, tensions between China and the Philippines remain significantly high. Increased aerial and naval confrontations in August, compounded by longstanding mutual mistrust, hint at a precarious situation. Both nations are employing legal strategies alongside military maneuvers, while China’s recent maritime regulations and the Philippines’ military modernization efforts suggest a future marked by conflict.
Rising Provocations and Distrust
The situation deteriorated further in June 2024, when Manila accused Chinese forces of intercepting its boats and injuring a sailor. Although the July deal allowed for a resupply mission without incident, broader tensions persisted as China reportedly fired flares dangerously close to Philippine aircraft in August. The incidents at Second Thomas Shoal illustrate the deepening security crisis that has persisted since 2021, as China continues to challenge Philippine resupply efforts.
Potential for Escalation
While the recent agreement may offer temporary relief, it is unlikely to resolve the long-standing maritime disputes in the region comprehensively. The continuing misinterpretations of the deal and the profound distrust between the two nations suggest an ongoing trajectory of escalating tensions. As disputes over competing claims in the South China Sea intensify, the situation at Second Thomas Shoal serves as a volatile flashpoint for future conflicts.
China
Is life getting better for China’s tech billionaires?
Pony Ma, Tencent co-founder, is China’s richest person with over A$65 billion. Despite past crackdowns, his wealth indicates a potential market recovery, while maintaining state control over the economy.
According to the latest Bloomberg Billionaires Index, Pony Ma, co-founder of Tencent Holdings, is once again China’s richest person, now with a net worth of more than A$65 billion, placing him 27th globally.
Close behind him in the rankings are bottled water tycoon Zhong Shanshan, and Zhang Yiming, the main co-founder of tech giant ByteDance, which owns TikTok.
Only a few years ago, China’s ruling Communist Party launched a crackdown on billionaires and other business leaders. Some were publicly jailed. Others simply disappeared from public view.
Ma’s resurgence might seem like a positive signal of a more permissive market environment. But as we watch China’s private sector grow, we should remember it follows China’s unique playbook.
The ascent of Tencent
Ma’s wealth primarily comes from his stake in Tencent, which he co-founded in 1998 with its headquarters in Shenzhen. As China’s economy grew, Tencent became a world-leading internet and technology company.
Tech billionaire Pony Ma at a government meeting in 2018.
Song Fan/AP
Tencent is well-known for QQ and WeChat, which quickly became two of the most popular instant messaging apps in China and connect more than a billion people.
Tencent is also the largest video game vendor in China, with popular games such as “Honour of Kings” and “League of Legends”.
Last month, Tencent released “Black Myth: Wukong”, China’s first-ever “AAA” video game. AAA is a globally recognised gaming industry buzzword that refers to major, high-budget, standalone productions.
The much-hyped game surpassed 10 million sales across platforms within three days of its release, becoming one of China’s most successful games of all time.
The game itself draws on a 16th century Chinese novel called “Journey to the West” and features various Chinese landscapes. Its popularity aligns with Beijing’s ongoing efforts to boost China’s international cultural appeal.
China’s state-owned media outlet Xinhua highly praised the game for “telling Chinese stories with world-class quality” and offering a new way for global players to understand Chinese culture.
Ma’s fortunes reflect his company’s
This official appraisal means a lot. In previous years, Tencent has had a challenging time coping with Beijing’s strict gaming regulations.
In August 2021, China’s video game regulator announced policies to limit online gamers under the age of 18 to only one hour of play on Fridays, weekends and holidays. This was a major blow to China’s gaming industry, including Tencent.
In December 2023, Beijing introduced more legislation aimed at further capping the amount of money and time that could be spent on video games. The announcement resulted in a 12.4% drop in Tencent’s share price. But the company still promised to strictly implement any new regulatory requirements.
The success of ‘Black Myth: Wukong’ reflects an improving outlook for Tencent.
Andy Wong/AP
A cautionary tale
In China, complying with state regulations is important. Another Chinese tech billionaire, Jack Ma, faced the consequences of publicly challenging them.
In 2020, Jack Ma was poised to launch what was set to be the world’s largest initial public offering (IPO), raising about A$50 billion for his financial technology giant, Ant Group.
However, after he gave a speech in Shanghai harshly criticising Chinese financial regulators for outdated rules and excessive intervention, regulators halted the Ant Group IPO.
Citing concerns that Ant Group’s e-finance products encouraged unrestrained borrowing and investment, China ultimately suspended the IPO in late 2020.
Over the following years, Ant and its affiliate company Alibaba were slapped with billions in fines for alleged breaches of financial regulations.
Getting on the front foot
This phase marked a much stricter regulatory posture from China. The tech tycoons had to adapt to a new reality.
In 2021, Pony Ma publicly stressed the importance of tightly regulating internet businesses, including his own. He also proactively volunteered to meet with antitrust authorities.
Tencent downsized by divesting stakes in various sectors, and the government demanded a restructuring of its financial business.
Many of China’s other billionaires heeded lessons from Jack Ma’s troubles at Ant Group.
Alex Plavevski/EPA
The party remains the ultimate authority
China’s economy is a “socialist market economy”. That is, China’s government thinks of the market as a useful tool to achieve socialist objectives.
That doesn’t mean the private sector doesn’t play a huge role, but the government has long been cautious about the emerging market power of oligarchs as a potential threat to the party’s authorities.
Over past decades of reform and opening up, Beijing has been committed to unleashing market forces, encouraging private sector development and modernising its financial institutions. The precondition is that the state should maintain the ultimate authority to regulate and mobilise market resources.
However, its economy has been stubbornly sluggish post-COVID. The clampdown on the private sector has undermined the confidence of many investors and entrepreneurs, which is crucial for restoring China’s economic vitality.
Last year, Beijing introduced a 31-point action plan in response, aiming to make the private economy “bigger, better and stronger”. Hours after its release, Pony Ma publicly praised the government’s move as “encouraging and inspiring”.
Could spring now be coming for China’s private sector? Perhaps, but only on China’s terms.
Remember, market development is always a means for the state to achieve its own ends. This will never be a story of the market growing while the state steps back.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
China
Zhejiang Province Increases Marriage Leave to 13 Days
On September 27, Zhejiang Province expanded marriage leave from 3 to 13 days for legally married employees. The new regulations ensure continued pay and benefits during leave and address demographic challenges by encouraging population growth. Businesses must update internal policies accordingly.
On September 27, the 12th meeting of the Standing Committee of the 14th Zhejiang Provincial People’s Congress approved the Zhejiang Province Marriage Leave Regulations (hereinafter referred to as the “Regulations”), extending the marriage leave to 13 days from three days.
According to the Regulations, employees who legally register their marriage are entitled to 13 days of marriage leave, excluding national statutory holidays and rest days. During the marriage leave, employees’ wages, bonuses, and other benefits will continue to be paid by their employers.
Notably, to ensure a smooth transition between the old and new leave regulations and to minimize disputes following the implementation of the new rules, the Regulations state that employees who registered their marriage within one year before the implementation of the new regulations and have not yet taken their marriage leave will be entitled to the new 13-day leave. Those who have already taken their marriage leave can supplement it according to the new regulations.
Businesses with operations in Zhejiang province are advised to amend their internal leave policies and employee handbook as soon as possible.
The extension of marriage leave in Zhejiang Province is part of a broader effort to support population growth and address demographic challenges. The province has seen some positive effects from its initial fertility support policies, which have helped to slow the sharp decline in birth rates.
*Granted to those who take pre-marital checkups, which involve being checked for any health conditions that will affect childbirth.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
- Navigating Turbulent Waters: Trust Between China and the Philippines
- Is life getting better for China’s tech billionaires?
- Zhejiang Province Increases Marriage Leave to 13 Days
- China ETFs Celebrate Beijing’s Stimulus Initiative
- From Bubble Tea to Business Partnerships: Exploring China-ASEAN Trade Integration
- With China seeking AI dominance, Taiwan’s efforts to slow neighbor’s access to advanced chips needs support from the West
