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France is looking to give political impetus to reform of the global financial architecture. Others should swing in behind its gambit  Almost 500 days into the war in Ukraine, Europeans and Americans are anxious about their relationship with the global south. While the transatlantic allies are united, they have been left perplexed by the often tepid reaction of third countries to Russia’s aggression. And the gap between north and south appears only to be growing. The global crises of the last five years – covid-19, Russia’s war on Ukraine, inflation, climate change – have pushed Europeans’ focus inward, while these challenges have plunged much of the developing world into economic decline alongside exacerbating energy and food insecurity. Worse, some of the solutions put in place to overcome these crises – border closures, sanctions, re-shoring – have had major negative impacts on the global south. Meanwhile, the multilateral system has spiralled further into crisis, accelerated by the effects of the US-China rivalry, and has failed to provide relief to developing and vulnerable countries. More deeply affected by this ‘polycrisis’ than the global north, they have much less resource to tackle its consequences: dozens of low-income and medium-income countries now face crippling debt. To start to address these problems, President Emmanuel Macron is holding an ambitious event that seeks to focus political attention on the injustices and inequities of the current global financial architecture. Hurriedly decided on after last year’s COP27 in Egypt, his Summit for a New Global Financing Pact will bring leaders, civil society advocates, private actors, and international financial institutions together in Paris. The gathering’s goal is to find ways to build a more inclusive and equitable financial system, one that enables the climate transition and promotes biodiversity without jeopardising development. From its colonial and post-colonial history, and with its permanent seat on the United Nations Security Council, France maintains many close relationships on other continents. In response to brewing discontent and despair, Macron has stressed the need to address global south grievances, using frequent speeches to do so, whether in New York, Washington, or Bratislava. He is now once again engaged in an ambitious yet hasty endeavour: inspired by COP21 in Paris in 2015, the president believes diplomatic elbow grease goes a long way in mobilising around global issues, and he has made good use of it. As early in his first presidency as 2018, he launched the Paris Peace Forum, an annual event bringing together leaders and civil society to work towards a revived and innovative multilateral order. After President Donald Trump rescinded the Paris Agreement on climate change, Macron launched summit after summit on aspects of the issue (One Planet, One Ocean, and One Forest). To tackle the impact of covid-19 on Africa, in May 2021 France hosted the summit on the financing of African economies. This time, the goal is to reinvent the global financial architecture. Ever since the paradigm shift brought about by the pandemic, Macron has argued for a new approach – a “Paris consensus,” in a reference to the 2015 Paris agreement on climate change – to replace the market-orientated Washington consensus with net zero, sustainable economic development goals. In his view, the metrics used in the past are “not valid any more to fight against poverty, for the decarbonisation of our economy, and for biodiversity”. He is therefore pushing to reform the global architecture to incentivise net zero investments for a sustainable future. Macron’s idea behind the new summit is to give a political boost to an issue all too often discussed only on a technical level, and in silos. No one expects an actual “pact” to be signed, but France – along with the summit’s steering committee, which is composed of states and international organisations – is aiming for a political declaration that would muster firm commitments from world leaders, and force consequences down the line. And world leaders are indeed showing up: the secretary general of the United Nations, the new president of the World Bank, the president of the European Commission, the US Treasury secretary, the president of Brazil, the German chancellor, and the Chinese prime minister are all expected to attend, along with 40 heads of state, one-third of whom will be from Africa. As so often before, Macron hopes to be transformational in record time. The summit planning started with high ambitions, but sources say it has had to adapt due to a lack of time and focus. Initially launched around the Bridgetown initiative of Barbados prime minister Mia Mottley, France had aimed to include topics other than climate, such as health and poverty, and sought a G20 presidency endorsement by India. Unfortunately, Indian prime minister Narendra Modi will be in Washington during the summit and, despite the fact that India is co-chairing the summit’s steering committee and the expected presence of Lula and Li Qiang, the event may not in the end be a show of force for the global south. NGOs have been privately critical of the lack of inclusivity and transparency of the working groups, and disillusionment is running high. Some concrete results could still emerge from the four working groups, if negotiations are successful. Among the ambitions floated are debt suspension clauses for natural disasters, reallocation of special drawing rights, scaling up private capital flows through improved de-risking instruments, freeing up more concessional resources from multilateral development banks, and new international taxes (such as a levy on maritime transport). In an increasingly fragmented world, a united political declaration in support of these changes at the conclusion of the summit would be a win for everyone. However, a more modest but attainable goal from the summit would be the emergence of a “coalition of ambition,” in which a number of committed countries, or “champions,” take on specific challenges and sustain the diplomatic effort beyond the summit in Paris. Many other opportunities to build on momentum created in Paris will shortly follow: the African Climate Action Summit, the SDG summit, the New Delhi G20 Leaders Summit, and COP28 in Dubai. Since this summit has no mandate, it can only be a success if it is able to agree actions that then endure. For global south countries, the gathering should in turn create opportunities to strengthen support for their demands in all these upcoming forums. The success of the Paris summit will also depend on the capacity of states and other major players to take on the challenge – including Europeans. Germany is backing France in this effort, but most Europeans have yet to show their commitment to the process. Thirteen world leaders have penned a declaration of good will in an op-ed ahead of the summit, although without offering specific pledges or a timeframe for results. Unfortunately, the American president will not attend the summit, nor will the Italian, Canadian, or British prime ministers. The choice to stay away may stem from irritation at yet another grandiose French summit. But rich industrialised countries have no excuse for lacking interest in the dire situation of developing and vulnerable countries. It also puts responsibility on France to continue to move the ball forward after the summit – and not be content with the impression that it tried. Even if France may indulge in summit-mania, and however imperfect the event will inevitably turn out to be, Europeans and Americans must realise that France’s solo act is worth supporting. With clear steps taken by France ahead of the summit, such as the reallocation of 30 per cent of its special drawing rights (about €7.8 billion), Macron is defending his concept of an effective multilateralism in action, one that delivers. With Russia seeking to peel global south states away from the West, Europeans and the United States need to take up concrete actions that correct the imbalances of the current system and offer developing countries greater voice and power. By finally accepting that the institutions set up after the second world war must change, they would enhance their own credibility among global south states while escaping multilateralism limbo. The only way to salvage international cooperation – and to push back against the narrative of an inevitable north-south polarisation – is to demonstrate that it bears fruit for all.

Pivot to Asia - The Global South is on the march in their attempt to reshape the international system. How will this new order impact the old world? An increasing number of countries from the Global South, especially in Asia, are pushing to redefine the current global order. Three key trends to watch in this attempt to reshape the international system are the (potential) creation of a new economic order, the expansion of the BRICS grouping, and the transformation of China-Russia relationship after the invasion of Ukraine. In this changing international balance, Europe is losing its influence in the Global South, including in Asia. After centuries of global predominance, Europe’s strongest legacy is its role as a major normative power in global affairs. However, this reputation as a rule-setting power is set to change.   Why it matters 1. A (new) economic order. The debate over a “new Washington Consensus” has gained momentum after US national security advisor Jake Sullivan delivered a speech at the Brookings Institution on April 27th. The final communiqué by the G7 countries which met in Hirosahima on May 19-20 is the result of a similar strategic shift within the group, one that implies a move from economic interdependence to economic security. This shift is coupled with a major change in how the G7 intends to deal with emerging economies, such as their rival China and other partners in Asia that might soon become economic competitors in critical technologies. The G7’s sentiment has moved from promoting globalization and open markets to building industrial capacity in critical sectors, while securing existing and creating new strategic supply chains. Europe’s efforts in this context might not be enough: the investments envisaged so far are too little to reverse Europe’s dependency (often on China) in critical sectors. The EU must focus increasingly on diversifying its supply chains through securing access to rising economies in the Indo-Pacific. Here, joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could represent an opportunity.  2. BRICS+? The BRICS foreign ministers’ summit in June was yet another steppingstone toward enlargement. The countries that expressed a significant interest in joining the grouping are Iran, Saudi Arabia, the United Arab Emirates, Cuba, Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan: all these countries sent their representatives to Cape Town. Egypt, Argentina, Bangladesh, Guinea-Bissau and Indonesia participated virtually. While the membership process might be a long one, the group’s upcoming expansion highlights the Global South’s political will to rise its voice, with a plethora of actors eager and able to leverage the new competition between powers which is shaping up after the Ukraine war. In this framework, Asian countries such as China and India are competing with one another to lead the BRICS.   3. China and the Stans. On May 19, Xi Jinping met in Xi’an with the (leaders of) the five Central Asian “Stan”-countries (Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan). Russia, the region’s traditional kingmaker, was noticeably absent. The meeting kickstarted – for the first time offline – a summit named C+5 and highlighted Beijing’s belief that it can now make deals within the region without Moscow’s supervision. China’s newfound independence in Central Asia and Moscow’s growing dependence on Beijing after the war in Ukraine provides new insights the on China-Russia relationship: although the two countries are united by their common desire to contest the US-led world order, the Sino-Russian relation seems increasingly tilted in China’s favor. This instable relationship could result in a stronger Chinese presence in Central Asia.  4. Loss of strategic centrality. Europe does not only risk becoming increasingly peripheral in world affairs, but also losing its bargaining power with the emerging Indo-Pacific economies. On the one hand, the EU needs to diversify its supply chains away from China and likely towards the ASEAN; on the other, the Global South – and by default its Asian members – is more aware of the current strategic window of opportunity to redesign the global balance of power.   Our take We are witnessing rapid changes in the international arena. In the coming months there will be increasing requests to review global norms. Therefore, the leading event will be the upcoming BRICS Summit in August: the meeting will probably certify the process to accept new members. Among the countries that are voicing their desire to reset the rules, some are considered by the West (mainly) as rivals, such as China, and as partners, like India. Therefore, Washington and Brussels cannot simply accept or dismiss their requests. Asia is claiming its century: the integration of this claim for a renewed global order into the current world order has just started. Its most important implications will be on the economic side, namely the redistribution of industrial capacity and trade relation in the context of de-risking from China.  Spotlight: G7  The G7 Hiroshima Summit has sent some clear messages to the rest of the world. The decision to invite President Zelensky to the gathering was a move meant to reinforce the unity of the members regarding the Ukraine invasion in the face of Russia — and China, too. The West has criticized China’s 12-point position paper on the Ukraine war, since it does not call for Russia to abandon occupied territories. The G7 countries have also announced a strengthening of the sanctions, seeking to curb products that could be used by the Russian military. The other important takeaway of the G7 is the joint statement directed at China, which includes a strong criticism of Beijing’s “economic coercion” and invites the PRC to play according to international rules. The G7 have also reiterated their position on divisive topics such as security in the Indo-Pacific and Taiwan, retreating their commitment to preserve peace and stability in the region. Despite the joint statement and the declarations by the leaders on the challenges posed by China, the G7’s stance on Beijing is still a balancing act. While concerned about being overly vulnerable with China, G7 economies and their industrial base remain strongly interconnected with the Asian country and despite calls for “de-risking”, such as cutting China out from some sectors like raw materials, it is impossible at the time.  Experts’ viewsThe implications of China’s activism among the BRICS countries  The next BRICS Summit will take place at a critical juncture for the Global South. Russia is still at war, Brazil has a new administration eager to flex its muscles globally, and China has reached unprecedented influence across the developing world. Since they are all connected by the same desire of multipolarity away from US and Western hegemony, it is likely that the BRICS will try to offer a roadmap towards a new international order. This roadmap, however, is far from consensual: will Russia embrace the peace dialogues offered by Brazil or African nations – and what role will China play in brokering any such proposal? Will China and the other BRICS be able to cooperate economically to promote development worldwide? Are the BRICS ready for its first enlargement, and who is most likely to join in the coming years? This arrangement will require some mutual concessions and the outcome will help shape the future world order.  Guilherme Casarões, Fundação Getulio Vargas  The push to strengthen and even expand the BRICS, especially by China, should be viewed more broadly through the lens of a pragmatic Chinese foreign policy. It has not only sought to strengthen ties within BRICS but with other regions and countries who are instrumental for its trade and infrastructure connectivity imperatives.  This happens against the backdrop of a shift towards a multipolar world order with China as a rising power and rising geo-political tensions. Given that this bloc advocates for issues that are relevant to the Global South (global governance reform, support for a rules-based international order and multilateralism in times when countries retreat to unilateral measures), it is no surprise that other countries in the South wish to join. Regarding this summit, I see no major implications for the bloc, the core business of the BRICS will continue with South Africa advancing its five priority areas. However, we can anticipate a discussion on its formal expansion. Trading with local currency seems to have found new impetus following the sanctions placed on Russia. All this notwithstanding, it is important to note that the ‘de-dollarisation’ in trade debate is not a new concept for BRICS and its less about challenging the dollar but strengthening other currencies against external economic shocks. The real test is for the host country depending on whether President Putin attends the heads of state summit in August, given Pretoria’s obligations under the Rome Statute and domestic law.  Luanda Mpungose, South African Institute of International Affairs (SAIIA)  China’s push for a stronger BRICS on the global stage is advancing along a number of trajectories. Firstly, there is the BRICS expansion as well as the BRICS+ format that are likely to bring the majority of the Global South into BRICS-related platforms of economic cooperation. The implementation of the BRICS+ format may serve as a precursor for liberalizing trade across the Global South and exploiting the potential for boosting South-South trade and investment ties. The expansion in the membership of the Shanghai-based New Development Bank as well as the creation of its regional centers will increase the scope for connectivity projects across the developing world. There is also the greater use of national currencies (most notably the yuan) via de-dollarization as well as the R5 BRICS common currency project that if launched would mark a key transformation of the global financial system.  Yaroslav Lissovolik, BRICS+ Analytics   What and Where Thailand is ready to Move Forward   The May elections in Thailand resulted in a clear victory for the opposition parties. Led by Pita Limjaroenrat, Move Forward has won 152 seats, becoming the most voted party in the elections. This party is the heir to Future Forward, which was dissolved by the military government in February 2020, and was born out of the 2020-2021 protests against the army and the monarchy. The second party in the country is the historic Thai opposition party led by the Shinawatra family, the Pheu Thai. However, while the population has expressed its preference, there is no guarantee yet that Move Forward, and the opposition, will govern. Indeed, to be elected Prime Minister, and form a government, Pita will need to win the majority in the bicameral parliament made up of the elected 500 seats in House of Representatives and the 250 seats of the Senate – whose members are handpicked by the military. The Move Forward coalition with Pheu Thai and the other opposition parties so far can count on little more than 310 votes, a long shot from the majority needed to govern. The opposition must garner support among the senators – which generally have little interest in going against the military that put them in power – or among the parties that have yet to declare their allegiance.  Cambodia: Hun Sen is getting rid of the competition ahead of July elections  On the 14 of May, Cambodia’s opposition party – the Candlelight Party – has been disqualified from running in the upcoming July elections by the country’s election commission. The party has allegedly failed to submit the necessary documentation to participate in the electoral race. With the exclusion of the Candlelight Party from the coming elections, the only possible competitor to the ruling Cambodian People’s party (CPP) of PM Hun Sen – who has been in power for 38 years – has been eliminated. This is not the first time that the main opposition party has been cut out of the electoral race. For instance, in the 2017 the Cambodian court, which is heavily colluded with the CPP, dissolved the Cambodian National Rescue Party (CNRP) before the 2018 general elections – a party that was given new life when its members created the Candlelight Party. However, the members of the opposition continue to be persecuted by Hun Sen’s forces with many political exponents arrested on charges of treason, assaulted, or forced to leave the country. With the opposition forces largely depleted and the main party banned from running for elections, Hun Sen is likely guaranteed another term.   The United States seeks to expand influence in the Indo-Pacific  Washington took advantage of two key international events to strengthen its strategic position in the region. During the Quad Leaders’ Summit, which took place on the sidelines of the G7 in Hiroshima, President Biden, Australia’s PM Albanese, PM Kishida of Japan and PM Modi of India stressed their unity and stated their plans to invest in digital infrastructure in the region. Throughout the meeting they did not mention China directly in their statements, but their references to the country were clear. The Quad expressed concern over the militarization of the region and the use of both economic and military coercion to alter the status quo – a clear reference to Chinese activity in the South China Sea. Another important step for the US to consolidate its position in the region is the announcement of the Supply Chain Agreement under the framework of the Indo-Pacific Economic Framework for Prosperity (IPEF). The agreement includes the 14 IPEF partner countries, namely Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the US, and Vietnam. A year following the launch of the IPEF, this agreement is the first practical measure undertaken by the group. The group did not announce any official trade commitments, there is expectation among partners for increased cooperation and monitoring of supply chains fragility. The concrete development is still unclear, but the agreement signals the need for Indo-Pacific countries to avoid supply chain disruption and to minimize their dependence on the region’s main economic player, China.  Semiconductors: China fires back   China has gone on the offensive in competition over the semiconductor sector. The Cyberspace Administration of China (CAC) has stated that products by Micron, the US largest memory chip maker, are a “security risk for the information infrastructure supply chain” barring infrastructure operators from buying them. While additional information has yet to be revealed, some negative impacts are expected for Micron even if China and Hong Kong accounted for only 16% of the revenue of the company in 2022. The measure is a retaliation to America’s effort to cut China out from the semiconductor sector and slow the development of its industrial base. Since October 2022, the Biden Administration has imposed strict controls over chips export, followed by the Netherlands and Japan, preventing China from accessing and producing more advanced semiconductors. China’s declaration comes also after the leaders of the G7 grouping released a statement criticizing the country’s economic coercion tactic. After the move from Beijing, Micron fears that their products will be replaced by South Korean competitors, Samsung and SK Hynix, on the Chinese market. In the rising technological row between the US and China, there is also fear that Beijing might choose to put some export controls over other sensitive technologies, such as solar panels – where China dominates the whole supply chain.    TREND: Despite rate hikes, Asian unemployment is faring well (but not for everyone)  In the current context of high inflation and high rates, unemployment has turned out to be one of the main socio-political issues of Asia. With skyrocketing prices hurting businesses and consumers, many central banks in the West have adopted more hawkish monetary policies during the last year. Yet, the soaring cost of money has forced many businesses into a tight spot with concerning consequences on the employment level. Some countries though – like Japan, China, and Indonesia – have made the unorthodox choice to not significantly raise rates during the last year, while others – like South Korea and India – have adopted similar policies to those of the FED and the ECB. However, the results vary. In Japan the unemployment rate has been quite steady at around 2.6% for some time now, but in China the range (5.2-5.7%) was wider, especially due to the uneven nature of the post-Covid economic recovery. Yet, as the economy is slowly returning to normal, Beijing’s unemployment rate is gradually decreasing. Meanwhile Korea has consolidated a positive trend, with the last available figure at 2.5%, but the reforms of the labor market proposed by President Yoon Suk-yeol may cause some issues. The critical indicator though will be youth unemployment. Employment in aging societies, like those of East Asia, will increasingly become a core issue to maintain the viability of existing social welfare programs. So far China has a staggering 20.8% unemployment rate in the 16-24 years old age group which is particularly concerning, as it is the 7.2% recorded in South Korea. Japan is faring quite well but unemployment in the 25-34 years old age bracket has risen since the beginning of the year from 3% to 4%.

Understanding the Chinese Perspective The relationship between the United States and China is one of the most important and mutually beneficial bilateral relationships in the world. Nonetheless, it is also complex and contentious, with both countries vying for geopolitical influence and economic dominance. This brief examines drivers of U.S.-China strategic competition from the perspective of Beijing incorporating the prism of MarxistLeninist ideology, domestic politics in the U.S., China's needed alignment with Russia, nationalism, technological advancements such as AI, the role of regional players such as ASEAN, Japan, and the E.U., and Comprehensive National Power (CNP). Understanding this analytical lens contributes to deeper comprehension of China's security anxieties and world view that may provide insight to enhance engagement, resilience, and deterrence in bilateral relations with China. Introduction The relationship between the United States and China is one of the most important and mutually beneficial bilateral relationships in the world today. To illustrate, according to data published by the U.S. Bureau of Economic Analysis (BEA), total imports and exports grew 2.5 percent year-on-year to reach US$690.6 billion in 2022, breaking the previous record of US$658.8 billion set in 2018. This increase is despite the divisions associated with the COVID-19 pandemic and mutual unfavorable ratings. Nonetheless, the U.S.-China relationship is also complex and contentious, with both countries vying for geopolitical influence and economic dominance. Whether it is the rules-based Free and Open IndoPacific or the realization of Xi Jinping’s China dream, the competition for primacy between the U.S. and China will impact friends, partners, and foes of both states. Viewed from Beijing, Chinese scholars and analysts base their assessment of the trajectory of the U.S.-China strategic competition through several lens including the prism of Marxist-Leninist ideology, domestic politics in the U.S., China’s needed alignment with Russia, nationalism, technological advancements such as AI, the role of regional players such as ASEAN, Japan, and the EU, and Comprehensive National Power (CNP). Shaped by Marxist-Leninist Ideology Marxist-Leninist ideology has played a leading if not central role in shaping the Chinese Communist Party's (CCP) approach to governance and foreign relations. The CCP came to power in 1949 following a successful revolution led by Mao Zedong. Mao was heavily influenced by Marxist-Leninist thought. Since then, the CCP has maintained a commitment to Marxist-Leninist ideology, although its interpretation and application have evolved over time. Today, as former Australian Prime Minister Kevin Rudd and author of The Avoidable War: The Dangers of a Catastrophic Conflict between the US and Xi Jinping's China writes, Xi’s China leans left in terms of Marxist-Leninist socio-economic organization and right in terms of nationalism. Rudd’s analysis echoes President Xi’s speech on “Hold High the Great Banner of Socialism with Chinese Characteristics and Strive in Unity to Build a Modern Socialist Country in All Respects” in his report to the 20th National Congress of the CPC. In that speech, Xi stressed that “Marxism is the fundamental guiding ideology upon which our Party and our country are founded and thrive. Our experience has taught us that, at the fundamental level, we owe the success of our Party and socialism with Chinese characteristics to the fact that Marxism works, particularly when it is adapted to the Chinese context and the needs of our times.” At its core, Marxist-Leninist ideology emphasizes the importance of class struggle and the need for the working class to overthrow the ruling class to achieve a classless society. In the Chinese context, this has translated into a focus on creating a socialist society and promoting the welfare of the Chinese people under the umbrella term ‘Socialism with Chinese Characteristics’. In terms of China’s relationship with the U.S., Marxist-Leninist ideology has contributed to a view of the U.S. as a capitalist and imperialist power that seeks to undermine China’s socialist system. This view is rooted in the Marxist-Leninist belief that capitalist powers are inherently expansionist and seek to dominate other countries to secure their own economic and political interests. They see the U.S. as an imperialist power seeking to maintain its hegemony over the world, while China represents a rising power challenging the established order, as written by Graham Allison in his book Thucydides’ Trap. Chinese analysts believe that the U.S. is threatened by China’s rise and is seeking to contain it through various means, including economic sanctions, military posturing, and diplomatic pressure as evidenced by the Trump administration’s trade war, its network of alliances throughout the region, the advent of minilateral cooperation such as the Quad and AUKUS, and the perceived fomenting of independent movements in Hong Kong, Xinjiang, and Taiwan.  They argue that the U.S. is using its military alliances and partnerships with countries such as Japan, South Korea, and Australia to encircle China and limit its influence in the region. These perspectives ignore that the U.S. alongside with Japan and others openly supported China’s entry into the WTO, the 2008 Summer Olympics, and gave China a leadership position at the Paris Climate Accord. These initiatives demonstrated that the U.S. and other countries were willing to work with China on global issues and support its development. Destabilizing Influence of U.S. Domestic Politics While Marxist-Leninist perspectives of U.S.-China relations offer a macro-level understanding of how China views the inevitability of great power rivalry between Washington and Beijing, Chinese analysts also pay close attention to domestic politics in the U.S. and its impact on U.S.-China relations. Chinese analysts believe that the current political climate in the U.S. is highly polarized, and that these domestic political dynamics are affecting U.S. foreign policy, including its stance towards China. They see the Trump administration’s trade war with China as a reflection of this polarization, and argue that it has damaged the relationship between the two countries. They also note that the Biden administration has continued many of the same policies as the Trump administration, including maintaining tariffs on Chinese goods and pursuing a tough stance on technology transfer and intellectual property theft. The build-up to the 2024 presidential election for most will be one of intensifying securitization of relations with China. President Biden will not be in a position to show any weakness in his China policy. Equally so, the Republicans, whether it is former President Trump or an alternative GOP candidate will take an “All because of China” approach, when it comes to foreign policy, like advocating for a hard decoupling of the economies or even more provocatively, possibly migrating away or redefining the “One China” policy. Developing China-Russian Alignment Chinese analysts also view the relationship between China and Russia as an important factor in the trajectory of U.S.-China relations. They see the two countries as natural partners, sharing a common interest in challenging U.S. dominance of the world. They believe that the China-Russia all-weather partnership is growing stronger and that it poses a significant challenge to U.S. interests. For Russia, Pax Sinica would offer it a much more hospitable environment than the one provided by the Pax Americana, according to the authors of The Beijing-Moscow Axis: The Foundations of an Asymmetric Alliance published by the Centre for Eastern Studies (OSW). For China, a tightening of the alignment with Russia will be critical to ensuring that U.S. does not drive a wedge between China and Russia by pursuing a policy of containment against both countries, a policy that Chinese analysts view as unlikely to succeed. The invasion of Ukraine is a case in point. Despite Russia’s invasion violating the U.N. Charter and China’s Five Principles of Peaceful Co-existence, Beijing has taken a pro-Russian neutrality position refusing to condemn Russia. This is not an endorsement of the invasion or of Putin. It is a clear indication of the importance China places on the deepening Sino-Russian alignment and the reality that neither country can afford a geopolitical divorce. In fact, the recent paper ‘China’s Position on the Political Settlement of the Ukraine Crisis’ continues to echo President Xi’s Workers Report at the 20th Party Congress in October 2022, which explicitly used the expression that “no country’s security should come at the expense of another country’s security,” an explicit rejection of the U.S. and Western countries’ views that Russia has engaged in an unprovoked attack against the sovereign state of Ukraine.  Intensifying Nationalism Chinese nationalism is another important factor by which Chinese analysts understand the trajectory of U.S.-China relations. They view Chinese nationalism as a natural response to the country’s history of humiliation at the hands of foreign powers, including the U.S. Carefully curated since the Tiananmen Square incident in 1989, Zheng Wang writes in his book Never Forget National Humiliation: Historical Memory in Chinese Politics and Foreign Relations that Beijing has placed the century of humiliation at the center of China’s national building process and a nationalist movement in which victimhood, national rejuvenation, and a perineal sense of insecurity concerning the West and particularly the U.S. is the major pillar. These narratives have been meticulously manipulated and deployed to build a national identity in which China must resist anti-China forces and those states that wish to prevent “China’s rightful rise.” Events such as the 70th Anniversary of Victory of Chinese People’s War of Resistance Against Japanese Aggression and World Anti-Fascist War, 100th anniversary of the founding of the Chinese Communist Party, or national aspirations such as the China Dream are all constructed with the purpose of infusing into Chinese citizens a nationalism linked to the CCP’s selective understanding of history. Based on these selective views of history, scholars such as Qin Pang in their co-authored article on “China’s Growing Power Makes Its Youth Hawkish?” Evidence from the Chinese Youth’s Attitudes toward the U.S. and Japan’ find that Chinese citizens view the United States as seeking to contain China’s rise and limit its influence in the region, and that this is seen by many Chinese as an affront to their national pride. Chinese analysts believe that Chinese nationalism is a powerful force that will shape the country's foreign policy for years to come, and that it will continue to be a source of tension in U.S.-China relations. For the U.S. and other like-minded states, Chinese nationalism that is based on victimhood, national rejuvenation, and a perennial sense of insecurity concerning the West will not be a platform for stabilizing and creating constructive relations, especially if this nationalism drives territorial expansion in the South and East China Seas, the Himalayan plateau or across the Taiwan straits.  Dominating AI and Other Technologies  The rapid advancement of technology, particularly in the areas of AI and 5G, is another factor that Chinese analysts believe will shape the trajectory of U.S.-China relations. They see China as a leader in these areas, with the potential to surpass the United States in terms of technological innovation and economic growth. Chinese analysts argue that the U.S. is threatened by China’s technological progress and is seeking to limit its access to advanced technology, particularly in the areas of AI and 5G. They also believe that the United States is using national security concerns as a pretext for restricting Chinese access to these technologies. The U.S. Chips Act and the growing first tier semiconductor and technology firewall that is being erected around China by the U.S. in cooperation with Japan, South Korea, the Netherlands and Taiwan demonstrate the centrality the U.S places on dominating these spheres of technology. The consequence for China according to analysts in and out of China is that it will no longer have access to the most sophisticated semi-conductors, semiconductor producing machines and the associated expertise to keep up in the race to be the first mover when it comes to AI and other technologies that rely on first tier semi-conductor chips. In concrete terms, this means that as the U.S. and its allies will form a chips coalition among like-minded countries resulting in their collective abilities to generate scientific breakthroughs that can be translated into military and economic advantages that will preserve U.S. dominance and the existing rules-based order. Beijing is aware of this challenge and has attempted to reduce its reliance on the U.S. and Western states through its Made in China 2025 strategy and Dual Circulation Strategy. Whether these initiatives will be sufficient to outmaneuver U.S. initiatives to dominate semi-conductors and ultimately AI and other sensitive technologies is yet to be determined. Role of ASEAN, Japan, and the EU Chinese analysts also pay close attention to the role of regional players such as ASEAN, Japan, and the EU in the trajectory of U.S.-China relations. They believe that these countries have a significant influence on the balance of power in the region and that their relationships with the United States and China are critical. Japan’s release in December 2022 of three strategy documents—the National Security Strategy (NSS), National Defense Strategy (NDS), and Defense Buildup Program aims to uphold the current rules-based order and prevent the emergence of Chinese hegemony in the IndoPacific region. Meanwhile, the new Washington Declaration between the United States and the Republic of Korea (RoK) commits to engage in deeper, cooperative decision-making on nuclear deterrence, including through enhanced dialogue and information sharing regarding growing nuclear threats to the ROK and the region. The recent meeting between U.S. President Biden and Philippine President Marcos reaffirms the United States’ ironclad alliance commitments to the Philippines, underscoring that an armed attack on Philippine armed forces, public vessels, or aircraft in the Pacific, including in the South China Sea, would invoke U.S. mutual defense commitments under Article IV of the 1951 U.S.- Philippines Mutual Defense Treaty.”. These are explicit examples of how U.S. allies, through their cooperation and partnerships with the U.S., are aiming to preserve U.S. hegemony. In short, Chinese analysts argue that the United States is seeking to use its relationships with these countries to contain China’s rise, while China is seeking to build closer relationships with its neighbors and BRI partners to expand its influence and build win-win relationships based on its Five Principles of Peaceful Co-existence. Lastly, U.S. and ASEAN watchers in China believe that the United States is losing influence in the region, particularly with ASEAN countries, and that China is poised to fill the power vacuum owing to its extensive economic ties in the region, ties that many in Southeast Asia are dependent on for sustainable development despite reservations over the possible negative ramifications of increased Chinese economic and diplomatic influence in the region. Heft of Comprehensive National Power (CNP) Sensitive to the changing power balances and what this means for China’s ability to achieve its core national interests, China places enormous weight on Comprehensive National Power (CNP) as a key measure of a country’s overall strength and capability in all aspects of national development, including economic, military, technological, cultural, and diplomatic power as Hu Angang and Men Honghua write in their article title “The rising of modern China: Comprehensive national power and grand strategy”. The concept of CNP has been used by Chinese leaders since the 1980s to assess China’s relative strength compared to other countries, particularly the United States. In recent years, China has focused on increasing its CNP as part of its strategic competition with the U.S. Beijing aims to surpass the U.S. in terms of overall power and influence, believing that a higher CNP will enable the country to better protect its national interests, enhance its global influence, and achieve its long-term strategic goals. To increase its CNP, China has pursued a range of policies and initiatives. One of the key areas of focus has been economic development, with China becoming the world’s second-largest economy and a major player in global trade and investment. Through the Made in China 2025, the Belt Road Initiative (BRI), and the Dual Circulation Model, China has also invested heavily in science and technology, with a particular emphasis on emerging technologies such as artificial intelligence, quantum computing, and 5G networks.  In addition, China has modernized its military and expanded its global military presence based on the civil-military fusion (MCF), with the goal of becoming a world-class military power by the middle of the century. China has also pursued a more assertive foreign policy, seeking to expand its influence in key regions such as Southeast Asia, Africa, and the Middle East. Concurrently, China has also sought to promote its soft power, through initiatives such as the Belt and Road Initiative (BRI), which aims to enhance connectivity and economic cooperation between China and other countries. China has also sought to promote its culture and values through the Confucius Institutes and its latest Global Civilization Initiative calling for “called for respecting the diversity of civilizations, advocating the common values of humanity, valuing the inheritance and innovation of civilizations, and strengthening international people-to-people exchanges and cooperation.”  China’s focus on increasing its CNP is driven by its desire to become a major global power and to challenge the U.S.’ dominant position in the international system. While China’s rise has brought many benefits to the country and the world, it has also raised concerns among some countries, particularly the U.S., about the potential implications of China’s growing power and influence. This is especially true as we have seen a growing track record of economic coercion, grey zone tactics, and rejecting international law such as the Permanent Court of Arbitration’s July 2016 decision against its claims in the South China Sea.Conclusion Chinese analysts clearly view the relationship between the United States and China through a complex lens. They see the relationship with the United States as one of the most important in the world and believe that it will continue to shape the trajectory of global politics and economics for years to come. While there are significant challenges and tensions in the relationship between the two countries, Chinese analysts also see opportunities for cooperation and collaboration, particularly in areas such as climate change and global health.

In April 2023, South Korea and the United States released the Washington Declaration to reiterate and upgrade their treaty alliance. In outlining a joint nuclear deterrence strategy, the Declaration reaffirmed that South Korea would not pursue independent nuclear capabilities, and instead continue to rely on the alliance-based approach. This paper considers the strategic impact of the Washington Declaration beyond the U.S.-ROK nexus. Highlighting the importance of the agreement on security and stability in the broader Indo-Pacific region, this paper focuses on India’s stake in the new development. In particular, this paper emphasizes that despite its stated focus on the North Korean nuclear threat, the Washington Declaration also considers the Chinese and Russian threats in the region, making it of immense interest to India. It analyzes whether and how the Washington Declaration can complement India’s interests, and the potential for it to pave the way towards a closer India-U.S.-South Korea trilateral partnership in the Indo-Pacific.  Introduction  The release of the Washington Declaration in April 2023 has not just temporarily halted the Republic of Korea’s (ROK or South Korea) ambitions of developing its own nuclear weapons, but has also given more attention to the debates on nuclear deterrence in the Indo-Pacific. Even as the United States is concerned about growing nuclear developments in China, Russia, and North Korea (or the Democratic People’s Republic of Korea, DPRK), it is primarily focused on countering China – “the most comprehensive and serious challenge to U.S. national security.” Given that China’s military activities in its extended neighborhood, including in the Taiwan Strait, South and East China Seas, and the Himalayan borderwith India, have attained built greater momentum in the past decade, the Declaration assumes greater significance: As a forward-looking step to mollify U.S. treaty allies and partners in the region with the larger aim of bolstering a “cooperative” approach against the growing nuclear threat.  In this context, even as the Washington Declaration does not directly impact India, its implications for the IndoPacific amid India’s substantial role in the budding IndoPacific security architecture compels a closer examination into the new debates centered on South Korea’s extended deterrence. India is a “special strategic partner” for the ROK: Post the launch of the ROK’s Indo-Pacific strategy in December 2022, the two are exploring their increasing strategic convergence via respective inclusive policies as “pivotal” Indo-Pacific partners. Therefore, the security concerns in East Asia are not just important for India because of the domino effect on South Asia—home to near-perpetual instability due to the three nuclear states of China, India, and Pakistan—but also in terms of the negative impact on India’s (as yet) nascent efforts to boost multilateralism, middle power coalition, and regional integration.  Can New Delhi capitalize on South Korea’s gains from the U.S.’ latest declaration against North Korea’s and China’s nuclear threats? Could the Washington Declaration complement an envisioned India-ROK-U.S. trilateral in today’s divisive geopolitics? Could the new nuclear debates focusing on extended deterrence engender mechanisms for strengthening South Asian nuclear stability? Contextualizing the Washington Declaration Beyond the Peninsula Undoubtedly, the bilateral summit, including the Declaration will have an impact not just on the ROK but also on all stakeholders in the region—from U.S. partners like Japan and India to nuclear rivals China, Russia, and North Korea. What does the new pact bring to the fore for the ROK? In what ways will the latest U.S. approach to the Korean Peninsula affect the Indo-Pacific security landscape and partnerships, particularly for India?  Parsing the Declaration – (Not) New Significance for ROK?  In April 2023, the ROK-U.S. bilateral summit in Washington commemorated the 70th anniversary of the ironclad U.S.-ROK alliance—the duo’s dynamics have evolved from security treaty allies under the Mutual Defense Treaty, signed in October 1953, to global comprehensive strategic allies in May 2022. Presidents Joe Biden and Yoon Suk-yeol, through their joint statement, press conference, and a separate “Washington Declaration”, reiterated the shared commitment under the Mutual Defense Treaty, as well as toward establishing peace and stability in the IndoPacific. Moreover, Yoon’s state visit resulted in a stream of “political understandings” that ranged from billion-dollar economic and environmental tie-ups to technological and developmental cooperation. However, the event that has grabbed the maximum eyeballs is the Washington Declaration—unveiling new measures to concretize the “ambitious path” to secure the U.S.-ROK defense and global security cooperation and advance shared priorities in the Indo-Pacific.  This new pact claims to further the credibility of U.S. extended deterrence measures—referring to modernizing the U.S. capabilities, including nuclear forces, to deter attacks on allies, as also discourage allies from going nuclear, in the increasingly threatening regional security environment. For instance, the U.S. has constituted at the assistant secretary level a Nuclear Consultative Group (NCG) to assuage the ROK about the U.S.’ intent to formulate a consensus-based approach to handling the North Korean threat. This includes not just enhancing deployment of U.S. strategic assets, including nuclearcapable platforms, in and around the Korean Peninsula, but also augmented information-sharing, joint contingency planning, and an inter-agency table-top simulation. One of the most important objectives of this comprehensive outcome was to showcase to the domestic public in South Korea that the U.S. is a long-term reliable security partner—while also exemplifying the same for the other U.S. allies and partners in the region, such as Japan.  The U.S.-Japan-ROK trilateral is a central aspect in the Northeast Asia deterrence measures given that they face common threats from North Korea. Yoon has already opened the doors for a “three-way” strategic and nuclear planning “at any time” in the future to boost the combined response to a nuclear contingency: “The Washington Declaration is a bilateral agreement between Korea and the U.S., but we do not rule out Japan’s participation.” Already, there are speculations about Japan joining the NCG. For the present, the three countries have agreed to strengthen trilateral military cooperation including regularizing ballistic missile defense exercises and antisubmarine warfare exercises. They have also initiated efforts toward a “data sharing mechanism to exchange realtime missile warning data before the end of the year,” in line with the November 2022 trilateral leaders’ summit commitments.  At the same time, the Declaration has put on hold, even if temporarily, South Korean goals to build autonomous nuclear weapons. Yoon, who has been facing criticism at home for not heeding the extraordinary public support for acquiring an indigenous nuclear weapons program, had earlier this year stirred up a hornet’s nest by openly declaring nuclear weapons development as a possible policy option, which at the very least pushes the U.S. to re-deploy nuclear weapons. However, the Declaration clearly reaffirms the ROK’s continued commitment to the Nuclear Non-Proliferation Treaty (NPT) and the new 123 Agreement, with the U.S. president as the “sole authority” to launch nuclear weapons. It has therefore curtailed any independent nuclear notions for the near future and only served to strengthen the ROK’s alignment with the U.S. view of the global non-proliferation regime.  Consequently, the response in the South Korean media was subdued, if not sweepingly critical. Despite Yoon hailing the alliance as “nuclear based”, polls conducted during April-May 2023 (by the Korea Institute for National Unification, KINU) showed a significant drop in public support for the ROK going nuclear, especially in cognizance of the risks involved. The ROK government describing the Declaration as a Mutual Defense Treaty 2.0 or attesting to its “nuclear sharing” aspect have been touted as “false claims”; U.S. officials have also noted that the Washington Declaration is not a “de facto nuclear-sharing” agreement.  Importantly, questions have been raised domestically about South Korea paying a “high price” in return for “hardly … any substantive changes” in the U.S. nuclear policy on South Korea—sharply referred to by some domestic critics as “a redundant declaration produced by mutual distrust in the South Korea-U.S. alliance.” In concrete terms, the pact has been likened to the “jettisoning” of South Korea’s right to protect itself from the nuclear threat from North Korea—U.S. President Biden has categorically stated that he has the “absolute” authority as commanderin-chief to use nuclear weapons even though it would be in consultation with the allies. There are also legitimate concerns about the agreement having turned China and Russia into “de facto adversaries”. Misgivings have also been raised about the lack of U.S. assurance on increased business and investment ties, including in semiconductors and green technologies—areas where closer ties with the U.S. could help reduce Korean dependence on China.  The Chinese state media has raised serious concerns about the ROK “sacrificing” its “win-win” economic ties with China, but at present, maintains that “cooperation remains an irreversible trend in the long run.” Regarding these worries, some political observers in Seoul have contended that the ROK need not go back to its “strategic ambiguity” approach to pursue economic ties with China. This is primarily because countering China’s rise as a strategic challenge while maximizing economic benefits is a concern faced not only by the ROK but all liberal democracies in the present complex, transitional geopolitical scenario. Notably, the North Korean response has been predictable, calling it an opportunity for the DPRK to “perfect” its nuclear option; the official DPRK statement labeling it a “nominal” declaration highlights that the Kim regime sees it as business as usual.  A disconcerting aspect of the Declaration, even though it is in line with the sentiment of the times, has been the relegation of “pursuit of dialogue and diplomacy” with North Korea to a byline at the end. It indicates a closing of doors on diplomacy, albeit with a rogue state (namely the DPRK) unwilling to compromise, but nonetheless important given the near-consensus about the Declaration being an “evolution” in deterrence but not a panacea for the peninsular concerns. Some have also contended that “these outcomes will likely not provide enduring solutions to the North Korea challenge.”  Another notable issue that would have impacted the U.S.- ROK summit is the fallout from leaked U.S. intelligence documents, days before Yoon’s state visit, which suggested that the United States was spying on one of its foremost treaty allies. There are concerns in South Korea that the U.S. has “already penetrated into the Korean government’s networks and intercepted communications, possibly including phone and email.” As the U.S. has been accused of spying on the ROK in 2013, too, when its extensive surveillance program was exposed in press reports, the mistrust between the allies is likely to re-surface time and again. Therefore, in view of the South Korean government’s restlessness and nuclear claims prior to the April joint statement, there is some truth to the assertion that the Declaration arises out of the need to downplay the U.S. allies’ misgivings and trust issues. Its importance hence lies in shoring up of the U.S.-ROK partnership amid fears of the current security situation in Northeast Asia and the Indo-Pacific becoming worse due to the growing divisions in global geopolitics. Nonetheless, Yoon’s embrace of “strategic clarity” for the Indo-Pacific construct; sanctions on Russia during the Ukraine war; the success in resuming the U.S.-ROK-Japan trilateral in the past year; and the importance accorded to Yoon’s state visit, including the broad-ranging joint statement and the not-so-definitive yet formidable Washington Declaration, all highlight that the upward trajectory of the U.S.-ROK bonhomie is not a superfluous achievement. It points to a steady, forwardlooking alliance with implications for the wider IndoPacific. Ascertaining India’s Interests At a broader level, for the Indo-Pacific, especially for U.S. allies and partners in the region, the 2023 Washington Declaration is a sign of the U.S.’ willingness to negotiate the partners’ growing need for an inclusive, if not entirely equal, cooperation mechanism. Such an approach will not only strengthen the respective bilaterals with the United States but also present a stronger coalition in the fight against both North Korea and China. The latter is intent on destabilizing the existing status quo through its military aggression—from the Taiwan Strait to the Himalayas.  For India, which has been facing the brunt of China’s military tactics along the Line of Actual Control (LAC) with an increased frequency in the past decade, the Washington Declaration highlights a strengthening of like-minded partnerships in the continuing democratic face-off against China. Thus, the Declaration’s impact is felt in Indo-Pacific geopolitics, including India’s immediate neighborhood— particularly as it compels the ROK to sharpen its global pivotal leadership by embedding itself deeper in the U.S.- led Indo-Pacific construct. Though the Declaration is specifically targeted against North Korea, not China, the evolving alliance is a response to the ever-growing threats in and around the Korean Peninsula, as well as in broader Asia: From Central Asia to the Middle East; the Himalayan States to the Indian Ocean; the South China Sea to the East China Sea, China’s diplomatic-economic clout and military presence is growing. In short, the Chinese threat is the main concern for the U.S.  As a result, China’s Foreign Ministry Spokesperson Mao Ning was stringent in his criticism of the new pact: “What the U.S. is doing ... provokes confrontation between camps, undermines the nuclear nonproliferation regime and the strategic interests of other countries.” China was also immediate to voice its opposition against Japan’s potential involvement through the Washington Declaration, after Yoon was positive about turning the bilateral agreement into a trilateral one in the future. The inclusion of the phrase “peace and stability in the Taiwan Straits” and critical technologies cooperation in the joint statement also raised hackles in China in terms of South Korea isolating China and crossing its red lines.  China sees this agreement as another U.S. tool to strengthen a values-based security coalition in the region à la Quadrilateral Security Dialogue (Quad comprising Australia, India, Japan, and the United States). The Quad’s successful bonhomie has not only inspired other such U.S.- led platforms (e.g., the latest with Australia, Japan, and the Philippines and the West Asian one with India, Israel, and the UAE) but has also become a thorn in the side of China’s goals of regional dominance. Any deterrence for China’s growing ambitions is in India’s interests, which is not only facing a continental threat but also recognizes China’s growing reach in India’s traditional stronghold of the Indian Ocean region.  Consequently, despite not being directly connected to this agreement, India may nonetheless benefit from the Washington Declaration in a number of ways both in the Indo-Pacific and the Korean Peninsula. Firstly, the Declaration is critical to increasing the Quad’s strength. The reaffirmation of U.S. commitment to its Indo-Pacific allies and partners, including India, will not only boost the Quad but also set the stage for renewed deliberations on the Quad “Plus” framework, of which the ROK is a part, thereby opening up more avenues of India-ROK collaboration. In turn, such integration of South Korea with the Quad will further push the North Korean agenda onto the Quad’s table.  Secondly, in response to Chinese (and North Korean) aggression, the Washington Declaration emphasizes the need for maintaining the status quo in the Indo-Pacific and rejects any illegitimate maritime claims, militarization of reclaimed features, and coercive actions. This might be seen as normal diplo-speak; however, it will further concretize the ROK’s aims to build greater maritime collaborations, including naval deterrence capabilities, in the Indo-Pacific. For instance, the Chungnam frigate (FFX), launched by South Korea’s Hyundai Heavy Industries (HHI) in April 2023, will be incorporated into the ROK Navy— its second-largest naval expense. Such an investment is poised to contribute to stronger South Korean presence in the Indo-Pacific in line with its newly launched IndoPacific strategy. It is a positive development for India, which is looking to bolster its IOR presence through likeminded partners like the ROK, the European Union and its members, and Japan.  Here, it is also important to note that even though the ROK has traded off its nuclear development ambitions for “deeper, cooperative decision-making on nuclear deterrence” in the Washington Declaration, the road to fulfilling its nuclear-based ambitions has not closed down. In the future, for instance, Seoul might still be inclined to renew its post-AUKUS (Australia-UK-U.S. defense pact) demands to gain access to the U.S.’ nuclear-power submarine technology. India, which is one of the few countries to have nuclear-powered submarines with ballistic missile launch capabilities, can use this opportunity to further increase naval exercises with the ROK, along with making a stronger push towards defense technology and manufacturing collaborations.  Thirdly, India and South Korea are strengthening their bilateral and regional relationship based on democratic and inclusive visions, characterized by the centrality of the Association of Southeast Asian Nations (ASEAN). Their future-oriented partnership has a sound foundational convergence, namely the Act East Policy (AEP)-New Southern Policy (NSP) Plus connect. Notably, the degree to which the Yoon government embraces India’s AEP (and Indo-Pacific vision) will not only determine the natural progression of India-South Korea regional relations but also provide momentum to diversification goals. The latter is important in light of the ROK’s growing security and techno-economic dependence on the United States at the cost of neglecting its long-standing economic partner China, as underscored by the latest joint statement and China’s response to it.  In this context, India’s and the ROK’s quest for economic security, through participation in various regional and panregional forums, will enable them to build strategic links, and work together to balance regional developmental goals and their own economic-military growth. Both countries can use their participation in platforms like the Asian Infrastructure Investment Bank (AIIB) and the Indo-Pacific Economic Framework (IPEF) to build a stronger economic partnership. For example, the ROK, which joined the AIIB in 2015 and is the fifth-largest stakeholder of the AIIB with its shares at 3.86 percent, is looking to expand ties and find new joint project opportunities. India, as a founding member and the second largest shareholder with the largest project portfolio within AIIB, could facilitate the ROK’s enhanced contributions in the bank’s turn toward green infrastructure for providing “high-quality development finance.” India and ROK’s participation in forums like the Supply Chain Resilience Initiative (SCRI) and the U.S.- led Minerals Security Partnership (MSP) respectively, can help them coordinate their actions as they look to diversify critical value chains. The contested Asian and Indo-Pacific landscape has made supply chain diversification a priority. As U.S.-China trade and technological competition makes economic security vital, India and South Korea can build on their natural complementarities and work together to restructure their supply chains to reduce reliance on Chinacontrolled supply chains. While South Korea can support India’s goal of emerging as a manufacturing hub for key industries, India can be an important partner in South Korea’s aim to diversify its economic partnerships beyond China under the NSP.  Lastly, if South Korea heeds to domestic criticism about “jettisoning” its strategic autonomy (that is, deferring to the U.S. by not acquiring a nuclear weapons development program), it will continue to diversify its partners, particularly in defense manufacturing and new technologies. Given that India and the ROK have expanded their defense cooperation, including joint production and export of military hardware, in recent years, the new pact will allow the ROK to push boundaries. For instance, the ROK could continue supporting India’s membership bid for the Nuclear Suppliers Group (NSG) or the MSP and India could facilitate South Korea’s increased participation in the Quad, a much-desired goal for Yoon.  Moreover, ROK-India could partner for peaceful nuclear purposes. At present, India does not allow foreign direct investment in the nuclear power sector, but as per Indian media reports, the government is mulling changes in the near future. Their coming closer together, which is already in motion, will consolidate the middle power-dominated multipolar Asia architecture, primarily to mitigate the constraints due to the growing bipolar rivalry. It will further their common goal to achieve a global standing while preserving strategic autonomy. U.S.-ROK-India: A Trilateral Inches Closer? The latest U.S.-ROK summit and the Washington Declaration have certainly strengthened the U.S.-led alliance structure in the region, giving partners outside this alliance hope for a consultative and cooperative security mechanism for the region, U.S. primacy notwithstanding. What is clear is that a democratic values-based coalition will be able to successfully maneuver the ups and downs through the times and give impetus to the new-era security, economic, technological, and diplomatic cooperation. In this vein, the Declaration could be seen as a clarion call for unity to deal with the current hostile regional and global geopolitical circumstances. The boost to the Japan-ROKU.S. trilateral through this pact, as well as the bilateral summit’s assertion to implement their respective IndoPacific strategies while enhancing “Indo-Pacific voices in multilateral forums, especially in addressing climate change, sustainable energy access, and food insecurity,” could pave the way for other minilateral coalitions.  India as a vital cog in the Indo-Pacific security network will naturally play a significant role. India’s increasing closeness to the United States as a counterweight to China and a strategic partner, especially in defense and technological areas, for a free and open Indo-Pacific (FOIP) makes it an important component in today’s U.S.-led liberal order, which is at a transition stage. Moreover, the bonhomie with South Korea is based on growing common values and interests of assertive middle powers, including strategic autonomy and global governance aspirations.  India will be closely watching to see whether Seoul’s emphatic turn to “strategic clarity,”—first with its “Strategy for a Free, Peaceful, and Prosperous Indo-Pacific Region” and now the Washington Declaration—will enable the ROK to fulfill its middle power potential as a “technological, economic powerhouse.” In other words, for India, the new ROK approach could enable a deeper strategic connect between the two partners by moving beyond economic and limited regional ambitions. The new goals would have to include extended joint military exercises, joint manufacturing of defense equipment, expanded connectivity (digital and physical), regional integration initiatives, global supply chain resilience, increased green technology sharing, effective critical mineral collaborations (to lower dependency on China and Russia), and technological norms building, among others.  Importantly, as both India and the ROK have signed the respective 123 Agreement with the U.S. on peaceful uses of nuclear energy, there is potential for cooperation in the power sector, as well as via technical exchanges, scientific research, and safeguards discussions. In March 2018, India and South Korea signed a bilateral civil nuclear agreement that allowed Korean companies to participate in India’s civil nuclear industry (including in atomic power plant projects and selling nuclear reactors to India). With energy security front and center on the global agenda in wake of the Ukraine crisis, trilateral cooperation in the civil nuclear sector can be an important step forward. Notably, nuclear exports are an important part of China’s Belt and Road Initiative (BRI). By 2030, China plans to build about 30 nuclear reactors abroad, worth $145.5 billion; it has already built four nuclear reactors in Pakistan (and is now building two more), has signed agreements to build reactors in Argentina, entered the UK nuclear market, and is currently negotiating with several other countries including Saudi Arabia and Kazakhstan. Amid the ongoing energy crisis, China’s foray into the global nuclear market could give it greater influence and potentially enhance its coercive power. In this context, the U.S., South Korea, and India have reason to bolster cooperation in this area and ensure they can stand as competitive nuclear vendors against China’s offer of advanced technology, competitive prices, and rich financing.  India, the ROK and the U.S. have several shared interests and are already engaged in high-level cooperation at bilateral and multilateral levels; as such, a trilateral between the three powers would help coordinate their actions in pursuit of their regional goals. At the same time, for India and the ROK, any such trilateral cooperation could serve to provoke China and make managing the U.S.-China equation much more difficult. Nevertheless, while India faces a belligerent China on its border and South Korea is dealing with an economically coercive China, a trilateral partnership could be necessary to bolster collaborations and further shared interests. Furthermore, the benefits of a U.S.-ROK-India trilateral would be equally distributed to not just the three countries, but also other regional powers. Improvement of ties between Japan and South Korea—which is shaping up to be a focal point of both Yoon’s and Fumio Kishida’s leadership legacies—will gain smoother and faster traction owing to Japan’s close ties with India and the alliance with the U.S. Australia and Indonesia, too, have responded positively to South Korea’s Indo-Pacific strategy. The establishment of a new U.S.- led defense-ministerial level quadrilateral mechanism with Australia, Japan, and the Philippines is another shot in the arm for “allied and like-minded” countries. Therefore, the U.S.-India-ROK trilateral would draw on the bilateral gains and their common belief in ASEAN centrality to further regional integration aims. This will also give impetus to Seoul and Delhi (and also Canberra) emerging as strong candidates for an extended G-7. Overall, the Declaration sets the stage for a strong U.S.-ROK camaraderie that will extend beyond nuclear deterrence goals, impacting broader regional multilateral dynamics of the Indo-Pacific. Lessons for South Asian Nuclear Dynamics: Potential for Reassurance and Deterrence? In many ways, the Washington Declaration seeks to be a show of strength—and a reprieve—against the North Korean nuclear threat that has rapidly escalated over the past year with the sudden rise in missile tests and an expanding nuclear program. Since his election for presidency, Yoon has frequently expressed willingness for South Korea to be a more active player in the Indo-Pacific, including by being a part of the Quad framework. The Declaration is a part of Seoul’s efforts to meet its security goals. While it is certainly a significant step to counter the North Korean threat, it is also an indication of a stronger alliance against provocative actions by China. The bolstered U.S.-ROK partnership under the Declaration is a step towards a more proactive and stronger South Korea in the region, and could eventually ease the way for Seoul’s productive involvement in the Quad, perhaps through a Plus framework. While South Korea will still need to establish itself as a reliable partner with the other members of the Quad, the Declaration certainly demonstrates its commitment to regional (and global) security, and by extension, the important role it can play through greater interaction and burden-sharing with the Quad.  Undoubtedly, this new bilateral agreement between the U.S. and the ROK (potentially also involving Japan through the trilateral) will usher in new lessons for the wider Indo-Pacific, and in turn for India, too. For instance, the prospects of closer consultations that will strengthen the combined defense posture are relevant for not just U.S. treaty allies like the ROK and Japan but central strategic security partners like India that is facing a two-front border escalation with China and Pakistan. However, could this new deterrence declaration in Northeast Asia pave the way for a common strategic mechanism between the U.S. and India that enhances deterrence and provides a degree of reassurance against the growing nuclear risk in South Asia?  As much as it is possible that the U.S. extended deterrence for ROK would fuel an arms race, as also underscored by Russia and China in their response to the Declaration, not just in Northeast Asia but also in nuclear-heavy South Asia, it is often contended that “the drivers of nuclear instability in the region have more to do with conventional warfighting strategies.” The grave escalation in 2019 between India and Pakistan is one such example, and the accidental firing of a missile into Pakistan’s territory in 2022 that fortunately did not result in a retaliatory attack is another—both highlight the need to pursue definitive de-escalation and crisis management measures, and the latter puts a spotlight on the current fragility of the South Asian situation. The danger of an accidental nuclear war in such tense conflicts has not been stressed enough, and it bears repeating that such a threat was a constant refrain during the Cold War posturing.  Broadly speaking, today, India and Pakistan are not signatories to the NPT but have been gradually increasing their nuclear arsenals. China is a nuclear weapons state recognized by the NPT, and has accelerated its nuclear development program. All are developing newer “ballistic missile, cruise missile, and sea-based nuclear delivery systems.” As of January 2023, Pakistan’s nuclear arsenal was about 170 warheads (by some estimates the stockpile might go up to about 200 by 2025), China’s about 410 nuclear warheads; and India’s about 164 nuclear weapons.  Moreover, while India and China both have declared nofirst-use (NFU) policies, Pakistan has no such policy; its “full spectrum deterrence posture,” especially the development of tactical nuclear weapons capabilities for use on the battlefield to offset India’s (superior) conventional military tactics has been of concern to not just India but the United States as well. At the same time, recently questions have been raised about China shifting its nuclear policies, including the NFU, because of the nuclear expansion and modernization. Vis-à-vis India, too, there are speculations that “India could be transitioning towards a counterforce nuclear posture to target an adversary’s nuclear weapons earlier in a crisis, even before they could be used.”  In this context, controlling escalation is not a conclusive plan of action, and dialogue, too, has limitations when the live-wire conflict, as it is with both India-Pakistan and IndiaChina, has historical roots and nuclear leverage. Also, India has called nuclear risk reduction an “interim” strategy; and as per its security review in 2003, India retains the option of nuclear weapons in the event of an attack by chemical and biological weapons. However, as part of its doctrine of credible minimum nuclear deterrence, including the NFU and non-use against non-nuclear weapon states, India is “prepared to convert these undertakings into multilateral legal arrangements.”  Therefore, for South Asia, the U.S. and its partners, including India, need to focus on building creative, reliable mechanisms for limiting the possibilities of crossing the nuclear threshold, as well as controlling the use of highprecision conventional weapons. For example, India, Japan, South Korea, and the U.S. should either as a new minilateral or in conjunction with Quad (Plus) strengthen a strategic dialogue that looks into ways of information sharing, including intelligence on nuclear threats in the sub-region, as well as take into account India’s pursuit of “global, verifiable and non-discriminatory” multilateral legal arrangements for a nuclear weapon free world.  Importantly, a vital tool that should be widely used is the dissemination of information about the dangers of nuclear weapons and the limitations of ballistic missiles among the public and policymakers. Lessons must be drawn from the South Korean scenario where public survey results in the recent past have highlighted a concerning trend of a high degree of support for nuclear weapons deployment without fully being made aware of the pitfalls. A recent study revealed that even in the U.S. and the UK, there is a lack of awareness about “nuclear winter”—a term used to illustrate the potential “catastrophic long-term environmental consequences from any exchange of nuclear warheads”— and that even brief exposure to these risks reduces the public’s support for nuclear retaliation. The dramatic lowering of public support for nuclear development is seen in the latest (aforementioned) KINU survey in the ROK, too, when presented with different possibilities of risks. Raising awareness and educating the public and decision-makers about such risks should also be part of the state’s strategy to reduce the heightened perceptions about nuclear weapons: the responsibility surely lies to a large degree on national governments and relevant multilateral organizations, which seem to have been caught napping.  In the wake of the Washington Declaration, which has rekindled the nuclear debates in the Indo-Pacific, it is imperative that concerted efforts be made by all stakeholders, especially the nuclear states and the ones desirous of autonomous nuclear weapons capabilities, to first raise regional public awareness about the ramifications of nuclear armament, and only then pursue responsible deterrence measures.

THE ISSUE As Taiwan president Tsai Ing-wen transited through the United States in March and April 2023, China embraced significant military and diplomatic measures to coerce and punish Taiwan and, to some extent, the United States. This is reminiscent of Chinese actions after then-speaker of the house Nancy Pelosi visited Taiwan in August 2022, though there were differences between China’s behavior. While some elements of China’s actions in April 2023 appear less escalatory than those in August 2022, there was considerable continuity and even progression with respect to People’s Liberation Army (PLA) operations, tactics, and reach vis-à-vis Taiwan. This brief analyzes Chinese activities in August 2022 and April 2023 and explores the factors impacting Beijing’s decisionmaking. INTRODUCTION  In March and April 2023, Taiwan president Tsai Ing-wen transited through the United States, during which she met with Speaker of the House Kevin McCarthy. This meeting was framed as an alternative to an immediate visit to Taiwan by Speaker McCarthy, and there were hopes that Beijing would not escalate as much as it did in August 2022 when Beijing provoked the Fourth Taiwan Strait Crisis after then-speaker Nancy Pelosi’s visit to Taiwan.  China nevertheless carried out significant diplomatic and military measures. Diplomatically, Beijing intensified some of its already-sharp measures aimed at punishing Taipei, while simultaneously softening its approach on other fronts. Militarily, China’s activities were substantively different from those in August 2022, but no less significant. Overall, Beijing appears to have taken a less heavy-handed, more targeted approach this time, suggesting it learned from its experience in August and was better postured to take action.  CHINA’S MORE SOPHISTICATED DIPLOMATIC APPROACH  China’s diplomatic activities took a two-track approach, with some measures aimed at ramping up pressure on Taipei and others aimed at softening China’s approach. This represents a considerable shift from August, when Beijing’s activities were overwhelmingly punitive. It also shows a more sophisticated use of multiple efforts in tandem.  Two Chinese diplomatic activities stand out in comparison to August 2022. First, Beijing appears to have timed a 12-day visit to China by former Taiwan president Ma Ying-jeou to coincide with Tsai’s transit and meeting with Speaker McCarthy. This was the first time a former or sitting Taiwan president had traveled to mainland China. As president, Ma endorsed the “1992 consensus” and encouraged greater cross-strait engagement, and as a result, Chinese leaders have been far more willing to engage with Ma and the Kuomintang (KMT) party that he previously led. Ma’s visit to China contrasted starkly with Tsai’s transit through the United States. China likely encouraged Ma’s visit to demonstrate that it is willing to engage with China-friendly parties such as the KMT—even as it engaged punitively with President Tsai and her ruling Democratic Progressive Party (DPP).  Beijing’s second major diplomatic maneuver came a few days before the start of Tsai’s U.S. transit, when China poached one of Taiwan’s few remaining diplomatic partners, Honduras. China reportedly offered Honduras up to $2.95 billion to establish diplomatic relations with China. This is the ninth time China has enticed a country to switch diplomatic ties from Taiwan to China during Tsai’s presidency, and it marks the second time China has poached one of Taiwan’s diplomatic partners around the time of a U.S. transit. In 2018, China established ties with El Salvador a few days after Tsai returned to Taiwan after transiting through the United States. Beijing likely did this again and timed its actions as a demonstration of its influence and power. On other fronts, China took measures in April that were similar to those taken in August 2022. China commonly uses disinformation to put pressure on Taiwan, so it is unsurprising that it did so in both August 2022 and April 2023. Ahead of Speaker Pelosi’s trip to Taiwan, a Chinese group reportedly published articles condemning her visit and used fake Taiwan news sites to argue that the United States would not be a reliable partner in the event of a Chinese invasion of Taiwan. Chinese actors also launched several cyberattacks in August, including changing signs and screens to display anti-U.S. messages. In April, China again launched disinformation campaigns, with much of these efforts targeting President Tsai. During her transit of the United States, Chinese consulates in the United States reportedly organized and paid pro-China demonstrators to protest outside of Tsai’s hotels and venues. These protests were in turn amplified by Chinese netizens who also falsely claimed that Tsai had paid the Hudson Institute to present her an award.   Mirroring its actions in August, Beijing also punished multiple U.S. and Taiwan organizations and individuals this April. Both U.S. institutions that hosted Tsai—the Hudson Institute and the Ronald Reagan Presidential Library—were sanctioned. For a second time, China also sanctioned Taiwan representative to the United States Hsiao Bi-khim, as well as her family and investors and firms tied to her. After Tsai’s transit concluded, Chairman of the U.S. House Foreign Affairs Committee Michael McCaul met with Tsai in Taiwan, and shortly after that, China announced sanctions on McCaul as well. Beijing used these sanctions to engage in targeted coercion. They allow Beijing to show domestic and foreign audiences that it is enacting punishments, but they have little or no tangible effect on the wider public in Taiwan or the United States.  China likewise repeated its use of punitive arrests of Taiwan citizens as an additional show of power against Taiwan. Chinese authorities announced on April 25 the formal arrest of Taiwan pro-independence activist Yang Chih-yuan. Yang was originally detained in August 2022 in the immediate aftermath of Speaker Pelosi’s visit to Taiwan. The formal confirmation of his arrest appears intentionally timed to coincide with the Tsai-McCarthy meeting. Adding to that, the Chinese government confirmed on April 26 the arrest of Li Yanhe, a Taiwanbased publisher. Given that there were no other highprofile arrests of Taiwan citizens between August and April, this too should be seen as intended by Beijing to showcase its displeasure over the Tsai transit.    China’s other major diplomatic steps varied from last year. Beijing did not announce major new diplomatic “countermeasures” against Washington, as it did in August when it canceled or suspended eight key areas of U.S.-China dialogue. Whether this should be viewed as a sign of restraint on China’s end is unclear. It could be that there were few remaining areas of U.S.-China engagement to target—seven of the eight key areas of U.S.-China dialogue that China canceled and suspended in August have yet to resume. Instead, China has been reluctant to engage in dialogue with the United States at the highest levels. Beijing has yet to respond to the U.S. request to arrange a phone call between President Biden and President Xi. This request was made public in mid-March after newspapers revealed initial U.S. plans for the Tsai transit.  On the economic front, Beijing embraced additional measures. In August 2022, China suspended imports of Taiwan fish and fruits and cut exports of sand to the island, though these had limited economic impacts on Taiwan. China stopped short of suspending imports or exports of specific goods in April 2023, but it did take some measures: on April 12, China’s Ministry of Commerce announced it was launching an investigation into Taiwan’s trade restrictions on certain Chinese goods. Importantly, the ministry’s notice stated that the investigation should conclude by October 12, 2023, but added that it could be extended until January 12, 2024—the day before Taiwan’s presidential election.[1] Depending on how political dynamics evolve, experts are concerned that China may use the investigation to impose additional economic sanctions or change or cancel parts of the Economic Cooperation Framework Agreement that China and Taiwan signed in 2010 to facilitate trade.  At the same time, however, China continued to signal a desire to increase cross-strait linkages. On April 10—the last day of China’s major military exercises—Wang Huning, the fourth-ranked member of the Chinese Communist Party’s all-powerful Politburo Standing Committee, met with a delegation of Taiwan business executives in Beijing. During the meeting, he called for improved economic and trade exchanges as a means of promoting peace and stability in the Taiwan Strait.  CHINA’S SIGNIFICANT MILITARY ESCALATION  On the surface, China’s April 2023 military activities differed substantively compared to those in August 2022. Some of the more provocative activities from the 2022 exercise—such as launching missiles over Taiwan and establishing military exercise exclusion zones around the island—were not carried out again in 2023. However, the latest round of military activities also showed considerable continuity and even progression with respect to PLA operations, tactics, and reach. Overall, China’s military activities were no less significant in April 2023 than in August 2022, with both exercises demonstrating the range of capabilities that the PLA is practicing against Taiwan.  MILITARY SIGNALING PRIOR TO THE MAIN EXERCISES The PLA’s primary activities began on April 8, with the start of large-scale exercises around Taiwan, but Chinese military signaling began days before that while President Tsai was transiting the United States. On April 5, the Fujian Maritime Safety Administration (MSA) announced a joint patrol and inspection operation of the Taiwan Strait. As part of this operation, Chinese maritime law enforcement officials were tasked with conducting “on-site inspections” (现场检查) aboard vessels in the Taiwan Strait.  The operation is significant in multiple respects. First, although there is no evidence that the operation actually stopped any vessels, it laid out an example of what China could do if it wanted to escalate. The intended “targets” of this operation encompassed several commercial shipping routes, including the Pingtan-Taiwan direct container route, the “mini three links” (小三通), and areas with heavy commercial and fishing vessel traffic.[2] This, coupled with changes in Chinese maritime safety regulations, allows China to set conditions for an escalatory stance in the Taiwan Strait and around Taiwan. It also reflects another effort to assert Beijing’s claims (which contradict international law) that China has “sovereign rights and jurisdiction” over the “internal waters” of the Taiwan Strait. Finally, the operation demonstrated China’s civilian mobilization capabilities and its capacity for operational coordination of civilian maritime actors in support of a joint operation.  Next, Chinese authorities released several announcements of multiple smaller-scale live-fire military exercises. On April 7, the Fujian MSA announced two series of live-fire drills north and south of Taiwan’s outlying Matsu Islands. These were scheduled to occur during and after the main military exercises; however, both of these announcements were later removed from the MSA website, resulting in uncertainty about the extent to which these exercises took place. Around this same time, military drills were announced at other locations, including multiple exercises off the coast of Liaoning Province (well to the north of Taiwan).  While there are few details about these drills, the flurry of announcements in a short time frame and the variety of locations of the drills are likely all part of the PLA’s overall activities aimed at countering the Tsai transit and meeting with Speaker McCarthy. Together, they served as a show of force and emphasized not only China’s ability to carry out several military activities at once, but also its ability to conduct operations in geographically dispersed areas farther from Taiwan.  COMPARING CHINA’S APRIL 2023 AND AUGUST 2022 EXERCISES Following these initial activities, the PLA Eastern Theater Command announced that from April 8 to 10, it would “organize combat readiness patrols around Taiwan Island and conduct ‘Joint Sword’ exercises in the Taiwan Strait, around the northern and southern parts of Taiwan Island, and in the sea and airspace to the east of Taiwan Island.” These exercises were the centerpiece of China’s April 2023 military activities and were reminiscent of the large-scale August 2022 exercises.   At first glance, some aspects of these exercises suggest an overall scaled-back military demonstration of force compared to August. The April Joint Sword exercises lasted three days, while the August exercises were scheduled for four days and later extended to seven. Perhaps most importantly, the April exercises lacked the highly provocative live-fire ballistic missile launches seen in August. On August 4, 2022, the PLA Rocket Force took the unprecedented step of firing multiple ballistic missiles over Taiwan and into the waters around the island. Five of these fell into Japan’s exclusive economic zone. In April 2023, the PLA primarily focused on simulating joint precision strikes on and around Taiwan, and the Rocket Force did not fire ballistic missiles near or over the island.  Another key difference was the amount of information released about the drills. Two days before the start of the August 2022 exercises, Chinese authorities released the coordinates for six distinct exercise exclusion zones encircling the island (and later announced a seventh zone). This allowed for a direct comparison to the exclusion zones that were mapped out during the 1995–1996 Taiwan Strait crisis. In April 2023, the PLA did not announce specific coordinates for its main exercises and commenced the exercises the same day they were announced, providing no advance warning.  The PLA’s decision to provide less information this time is significant for a few key reasons. First, it could be an indicator that Chinese leaders do not believe they need to pre-notify Taiwan or the international community regarding operations near or around Taiwan. Second, it likely reflects Beijing’s desire to prevent external interference by not showing where its forces could operate. Finally, it suggests more confidence in the PLA’s control of air and naval assets to operate around Taiwan without creating inadvertent hazards. It is likely that China will try to set a new norm of increased military operations around Taiwan without prior notification or announcement.  Despite these differences, the April exercises were no less significant than those in August. There were several areas of continuity between the two, as well as substantial new elements. Fundamentally, both the August and April exercises were suggestive of an “encirclement” of Taiwan using PLA Navy forces, with the objective of rehearsing elements of a potential blockade and other kinetic military operations against Taiwan.    PLA forces were roughly as active around Taiwan this April as they were last August. Information released by Taiwan’s Ministry of National Defense (MND) shows that, like in August, PLA vessels surrounded the island. The MND reported a single-day maximum of 12 vessels on April 10, close to the one-day high of 14 seen in August. Crucially, Taiwan’s MND also released maps indicating that, during the exercises, PLA vessels encircled the island in ways reminiscent of the August exercises.  With respect to air activities, the April exercises surpassed the peak of activity during the August exercises. On the last day of the Joint Sword exercises (April 10), Taiwan’s MND reported that 91 PLA aircraft were operating around Taiwan. This marked an all-time high up to this point and was considerably higher than the highest one-day total during the August 2022 exercises (66 aircraft). During the April exercises, the PLA also averaged higher daily incursions into the air defense identification zone (ADIZ), as well as incursions and crossings of the Taiwan Strait median line. However, it is worth noting that PLA air activity in April spiked higher and then subsided more quickly than in August.    PLA air and maritime activity around Taiwan is aimed at negating Taiwan’s ADIZ and the Taiwan Strait median line and is on track to increasingly challenge Taiwan’s contiguous zone. Incursions into Taiwan’s ADIZ ramped up in 2020 and have become a near daily occurrence. Prior to the August exercises, there were only a handful of reported instances of PLA aircraft crossing the Taiwan Strait median line, but China ramped up crossings in August, and this now occurs frequently. Similarly, PLA Navy vessels rarely came close to Taiwan’s contiguous zone—a boundary extending 24 nautical miles beyond Taiwan’s territorial baseline—in August, but China reportedly sent multiple vessels right up to Taiwan’s contiguous zone during the April exercises.  On top of that, the April 2023 exercises saw far more activity from one of China’s aircraft carriers. In the days leading up to the August 2022 exercises, the PLA Navy’s two operational aircraft carriers, the Liaoning and Shandong, deployed from their respective home ports of Qingdao and Sanya and moved in the waters around China as a show of force, but they were not integral to the exercises taking place around Taiwan. By comparison, China’s Shandong aircraft carrier and its carrier group played a primary role in April 2023. The carrier stayed in the waters east of Taiwan for several days before, during, and after the Joint Sword exercises. The Japan Ministry of Defense (JMOD) reported that the Shandong launched a total of 620 sorties between April 7 and 24, including both fixed-wing aircraft and helicopters. During the exercises, a total of 19 carrier-based J-15 fighters entered Taiwan’s southeast ADIZ—the first time those aircraft have been reported in Taiwan’s ADIZ. Many more carrier-launched sorties occurred near Taiwan (outside of the ADIZ), but there is no data available on the specific amount. Although it is far from certain that China would risk deploying the Shandong or any of its aircraft carriers to such a vulnerable location east of Taiwan in an actual conflict, the carrier operations signaled China’s intent and its efforts to practice capabilities to operate near and attack Taiwan’s east coast.    Access to Taiwan’s east coast is critical to the island’s defense. Military bases located on the island’s east side are key to force preservation, and the island has long sought the option of moving military assets to the east for protection during the onset of a potential PLA attack or invasion. Given the likely intense fighting in the Taiwan Strait in a cross-strait conflict, access to Taiwan’s bases to the east could provide the easiest way for the United States and allies to flow forces or supplies to Taiwan. This is not lost on China. A researcher at China’s Academy of Military Sciences, Zhao Xiaozhuo, emphasized that the carrier group “played a vital role” in showing the PLA’s ability to project power on Taiwan’s east, which would be crucial to deterring foreign intervention in a Taiwan Strait conflict.  Along with significant naval activity around Taiwan, April also showed an uptick in PLA vessels operating near Japan, according to JMOD reports. Around the time of the August exercises, the JMOD reported seven PLA vessels operating near Japan in the weeks before the exercises, but only one vessel—a Type 052D destroyer— during the period of the exercises.  By comparison, in the two weeks before and after the start of the April 2023 drills, the JMOD reported 19 distinct PLA vessels near Japan, five of which were tracked around Japan for more than 12 days and three of which were repeatedly tracked for 17 or more days. Some of these vessels included the Shandong and its carrier group, but there were also several other vessels operating separately in the waters on all sides of Japan. This increased PLA activity around Japan was likely intended as a warning and signal to Japan given Tokyo’s heightened concerns that a conflict in Taiwan will negatively impact Japan’s security, as well as its increased military investment and preparations to deal with such contingencies.  CONTINUED SIGNALING AFTER THE MILITARY EXERCISES China’s military signaling continued after the end of the Joint Sword exercises. On April 12, Taiwan’s Ministry of Transportation and Communication revealed that on the preceding day, China privately notified Taiwan that it would close an area of airspace north of Taiwan due to “aerospace activities” related to the launch of an orbital rocket into space. This zone was situated just 85 nautical miles from Taiwan’s northern coast, extended into Taiwan’s ADIZ, and spanned a busy route for air traffic in the region.    China initially warned against aircraft entering the zone from 9 a.m. to 2 p.m. on April 16–18. This lengthy period sparked anger, with officials in Taiwan calling it “unprecedented” and Chinese authorities later reducing the airspace closure window to only 27 minutes on April 16. China further muddied the waters when the Fujian MSA announced the closure of the zone to maritime vessels from 9 a.m. to 3 p.m. on April 16. When April 16 finally came, China reported it had successfully launched a meteorological satellite on a Long March-4B rocket, and debris from the launch was later detected in the announced zone.  This episode resulted in confusion and left many unanswered questions. It is not clear why China did not initially acknowledge the closure zone until it was reported by authorities in Taiwan. It is also unclear why the initial three-day window was later shortened to just 27 minutes on one day. This backtracking and lack of clarity may have been the result of poor internal coordination, but the episode was widely seen as part of China’s campaign to pressure and intimidate Taiwan. It is also worth noting that the original time frame overlapped with the G7 foreign ministers’ meeting that was taking place in Japan.[3] On top of that, President Xi Jinping played a role in military messaging when he traveled to the PLA’s Southern Theater Command to inspect the readiness of its naval forces. During his inspection on April 11, Xi stated that the PLA should “analyze and address military issues from a political perspective” and called for the military to “resolutely defend China’s territorial sovereignty and maritime rights and interests and strive to maintain the overall stability of the country’s neighboring regions.” Xi also emphasized driving forward the modernization of PLA forces and doctrine, and in a nod to the recent military exercises, he called for the PLA to “intensify force-onforce training based on operational plans.” Xi’s visit and his statements showcase that he believes the PLA plays a crucial role in overall efforts to increasingly exert control over Taiwan through coercive and kinetic means.  Taken together, China’s military escalation in April should be seen as a continuation of efforts to intimidate Taiwan and allow the PLA to practice a variety of operations around Taiwan. While its activities in April were different in important respects from those in August, they were no less significant.  FACTORS SHAPING CHINA’S OVERALL ESCALATION It is not exactly clear how and to what extent certain factors shaped the intensity and contours of China’s overall behavior, but a number of initial observations are possible.  While Chinese leaders likely felt domestic pressure to take action to oppose the transit, it is not clear they faced the same level of pressure as they did in August 2022. There was significantly less coverage of the Tsai transit on Chinese media and social media compared to then-speaker Pelosi’s August trip, when Weibo crashed around the time Pelosi was about to land in Taiwan and many netizens in China were tracking her flight to the island. It is possible that the Chinese public was either generally less aware or less interested in the transit or that Beijing did a better job of controlling public expression of views. This could have created more space for Beijing to act as it sees fit.  After Pelosi’s visit to Taiwan in 2022, China engaged in significantly escalatory activities, but this resulted in substantial diplomatic backlash. This likely influenced Beijing’s thinking this time, and it sought to achieve its objectives while reducing blowback. This aligns with Beijing’s use of more sophisticated diplomatic efforts— namely Ma Ying-jeou’s visit to China and the poaching of Honduras from Taiwan—which put pressure on Taipei and showcased Beijing’s willingness to work with Chinafriendly elements in Taiwan.  It is also possible that China acknowledged U.S. and Taiwan efforts to try to address some of Beijing’s concerns and aimed to craft a set of countermeasures to the Tsai transit visit that was proportional to what Beijing viewed as the level of Taiwan and U.S. “provocativeness.” Beijing closely monitored Tsai’s transit and likely recognized that certain elements were scaled down to reduce the profile and public nature of her engagements. Beijing might have also appreciated the attempt by Washington and Taipei to at least delay a Tsai-McCarthy meeting in Taiwan by offering McCarthy a chance to meet in the United States. If that is the case, it suggests that China will continue to escalate against future high-profile meetings between senior U.S. and Taiwan officials but will adjust the level of its activities based on its perceptions of the meeting’s dynamics.  Importantly, Chinese decisionmaking does not occur in a vacuum, so other geopolitical factors play a role. In recent months, Beijing has accelerated diplomatic efforts and sought to improve China’s international image. China’s continued support for Russia throughout the war in Ukraine has led to a considerable fraying of China-Europe relations. As part of Beijing’s efforts to restore ties with the region, President Emmanuel Macron of France and President of the European Commission Ursula von der Leyen were in China from April 5 to 7 to meet with President Xi.  A significant Chinese escalation during their visit would have undercut Beijing’s efforts to smooth over tensions with Europe. Beijing appears to have waited until the departure of Macron and von der Leyen (and Ma Yingjeou) to announce some key parts of its activities, including small live-fire exercises near Taiwan’s outlying Matsu Islands (which were announced the day that they left China), as well as the large-scale exercises around Taiwan (which were announced and started the following day).  Broader geopolitical trends may have also factored into Beijing’s calculus in its actions toward the United States and its allies. Around the same time as the Tsai transit, China targeted several major U.S. companies amid mounting economic and technological competition. On March 31, Japan announced restrictions on exports of semiconductor manufacturing equipment to China in a crucial move to support sweeping export controls issued by the Biden administration in the fall of 2022. On the same day as Japan’s announcement, the Cyberspace Administration of China announced a “cybersecurity review” of U.S. chip manufacturer Micron Technologies in apparent retaliation. Beijing has targeted other U.S. companies as well. On March 24, officials raided the Chinese offices of U.S. due diligence firm Mintz Group, and on April 28, officials questioned staff at the Shanghai office of U.S. consulting firm Bain & Company. China also reportedly slowed its review process of proposed mergers and acquisitions of U.S. companies. These moves are not explicitly part of Beijing’s countermeasures against the Tsai transit, but they likely factor into Beijing’s thinking. Amid heated U.S.-China tensions, Beijing regularly employs measures against the United States in the context of overall tensions and competition, and Chinese officials likely calibrated their actions against the Tsai transit to factor in action along other vectors. Thus, the absence of harsh diplomatic or economic retaliation against the United States after the transit may reflect the fact that China has already taken— or was planning to take—actions against the United States unrelated to the Tsai transit.  Finally, the approaching 2024 Taiwan presidential election also factors into Beijing’s calculus. President Tsai and the DPP have successfully leveraged past Chinese aggression to their electoral benefit. Most notably, China’s 2019 crackdown in Hong Kong severely worsened perceptions of Beijing among the Taiwan public, which aided the DPP in the 2020 presidential elections. This April, China avoided engaging in some of the activities that would affect Taiwan as a whole— such as suspending trade of certain goods and launching ballistic missiles over the island—but still demonstrated the range of military options China has against the island. At the same time, it embraced measures to directly efforts pressure President Tsai and the DPP ahead of the elections.  China’s decision to invite Ma Ying-jeou to China at this time was a key part of this. Ma’s trip to China, and his talking points after the trip, likely helped Beijing message to the Taiwan people that Beijing is open to working with leaders in Taipei. It was also meant to show that working with Beijing will bring Taiwan peace and prosperity, while pushing for Taiwan independence will create crises and conflict. Beijing’s messaging sets the stage for how to interpret Chinese actions toward Taiwan and does not rule out the possibility of another major escalation between now and January 2024 if Beijing perceives Taipei is embracing more “pro-independence” actions.  Overall, Beijing’s escalation against the Tsai transit showcases a China that is learning from its past actions and adapting its countermeasures based on how it assesses the level of “provocativeness” of Taiwan and U.S. activities. China also appears to be sensitive to the potential costs of its actions and is seeking to advance China’s claims over Taiwan using more sophisticated means beyond just punitive measures. Beijing demonstrated its willingness to take firm and escalatory meaures vis-à-vis Taiwan, and it is likely to continue to do so in the future.   [1] "Tension Over Pelosi," Bloomberg[2] The "mini three links" allows for direct postal, transportation, and trade links between the islands of Kinmen and Matsu and Fujian Province.[3] Hille, "China Backtracks."

This fall, Senate Majority Leader Chuck Schumer is slated to lead a bipartisan group of U.S. senators to China. The planned trip, like other recent visits to China by high-ranking U.S. officials, is aimed at improving the relationship between the U.S. and China. Such efforts to ameliorate U.S.-China diplomatic relations come amid growing tensions between the two economic giants. They also run parallel to U.S. efforts to strengthen ties with Indo-Pacific countries to limit Beijing’s influence. Take, for example, President Joe Biden’s September 2023 trips to India for the G20 summit and to Vietnam, where U.S. competition with China was a focus of Biden’s discussions. While he was in Asia, Biden made several agreements in science, technology and supply chain security designed to bolster U.S. relations with India and Vietnam. “I don’t want to contain China,” the president told reporters in Hanoi on Sept. 10, 2023, shortly after meeting with Vietnam’s communist party leader. U.S. Reps. Mike Gallagher and Raja Krishnamoorthi echoed similar sentiments during an event held by the Council on Foreign Relations think tank in New York City the following day. But even if the U.S.’s stated goal isn’t to limit China’s global influence, its recent agreements with India, Vietnam and other countries may do exactly that. What US-led G20 deals mean for China The U.S. is actively looking for ways to blunt one of China’s best tools of influence: international loans. During the G20 summit Sept. 9-10 in New Delhi, the U.S. pledged to help reform the World Bank and International Monetary Fund to make them more flexible in lending to developing countries to finance renewable energy, climate mitigation and critical infrastructure projects. Biden committed the first US$25 billion to make those reforms possible and secured additional financial pledges from other countries totaling $200 billion in new funding for developing countries over the next decade. The U.S. also signed onto a deal with the European Union, Saudi Arabia and India that will help connect the Middle East, Europe and Asia through rails and ports. Characterizing it as a “real big deal,” Biden said the rail and ports agreement would help stabilize and integrate the Middle East. These plans are aimed at providing an alternative to China’s Belt and Road Initiative. Commonly referred to as BRI, the initiative is China’s international infrastructure loan program. Over the past decade, Chinese government agencies, banks and businesses have loaned more than $1 trillion abroad, and 60% of the recipient countries are now in debt to these Chinese entities. The U.S. and other countries have long criticized BRI as “debt trap diplomacy.” One study suggests that the trillions of dollars in infrastructure loans to countries by the government and quasi-government bodies in China typically lead to debt problems that the borrowing countries can’t manage. As China grapples with a slowing domestic economy, it may become more difficult for Chinese entities to keep shelling out funding for big-ticket overseas projects. The new U.S.-led agreements that come out of the G20 could fill the coming gap. These G20 plans complement existing Western economic initiatives to compete with the BRI, including U.S. trade pacts for the Indo-Pacific region and the Americas, the EU’s Global Gateway and the G7’s Partnership for Global Infrastructure and Investment. What the US’s agreement with India means for China In their meeting on the sidelines of the G20, Biden and Indian Prime Minister Narendra Modi agreed to deepen collaboration on developing critical and emerging technology, such as quantum computing and space exploration, as well as 5G and 6G telecommunications. This will help India compete with China in the technological arena in the Indo-Pacific. The telecommunications portion of a joint statement by Biden and Modi specifically mentions the U.S.’s Rip and Replace program. It is about helping smaller telecommunications companies rip out technology from Chinese companies like Huawei or ZTE and replace them with network equipment from the West that will protect users’ data. The U.S. has banned Huawei and ZTE equipment from its telecommunication networks, deeming those companies national security risks. The U.S. and India’s pledge to support Rip and Replace is a direct counter to China’s telecommunication technology expansion. What the US’s agreement with Vietnam means for China In Vietnam, Biden elevated the bilateral relationship to a comprehensive strategic partnership, expanding the relationship in everything from economics to education to technology in a country that has long counted China as its top trading partner. The enhanced partnership includes the U.S. providing $2 million to fund teaching labs and training courses for semiconductor assembly, testing and packaging. One company in Arizona and two in California have already pledged to set up semiconductor factories and design centers in Vietnam, and the U.S. artificial intelligence company Nvidia will help Vietnam integrate AI into automotive and health care systems. All these investments will make Vietnam even more attractive to U.S. and Western companies that don’t want China to be the sole source of their supply chain. As Vietnam becomes a key player in the semiconductor market, it will shrink China’s share of the market as well as its regional technological advantage. The U.S. also agreed to provide nearly $9 million to help Vietnam patrol the waters around its borders and beef up port facility security, as well as boost efforts to fight illegal, unregulated and unreported fishing, or IUUF. While not explicitly mentioned, China is the target of this initiative; China and Vietnam continue to be at loggerheads over disputed claims over the Spratly Islands in the South China Sea, and Chinese industrial fishing vessels are the largest culprits of IUUF around the globe. By inking these agreements at the G20 in India and in Vietnam, the U.S. broadened its circle of allies and partners in the Indo-Pacific that can help counterbalance China. Along with similar diplomatic accomplishments by Vice President Kamala Harris at the recent ASEAN summit in Indonesia; security partnerships like AUKUS, between the U.S., Australia and the UK, and the Quad, between the U.S., India, Australia and Japan; increased military sales and training to Taiwan; and the recent Camp David meeting Biden held with Japan and South Korea, the U.S. is building partnerships all across Asia. These actions are aimed at restraining China’s political, economic and military might, even if U.S. leaders don’t explicitly say that is their intention. Regardless of rhetoric, actions speak louder than words.

The meeting at San Francisco between Presidents Joe Biden and Xi Jinping offers a short respite in the broader strategic conflict that both states have been waging since at least 2017. The friends and trade partners of both nations now have an opportunity to employ middle power diplomacy to advocate for their interests and also the moderation of competition. In his book Destined for War: Can America and China Escape Thucydides’s Trap?, Graham Allison provided historical examples of when a status quo power met a rising power and whether and why it resulted in war. Unlike his peer John Mearsheimer, author of the Tragedy of Great Power Politics, who concludes that competition and conflict between the US and China are inevitable due to the structure of the international system, Allison’s book provides a warning to both the US and China that the decisions they make could be positively or negatively consequential, leaving room for agency to be the final arbiter of the fate of bilateral relations. The pre-APEC meeting between President Joe Biden and President Xi Jinping was an invitro international relations experiment testing the premises of Allison and Mearsheimer as to whether US-China strategic competition will be shaped by the agency of leaders or the structure of the system. Superficially, the 15 November 2023 meeting allowed for an agreement limiting the precursors of fentanyl coming into the United States and, importantly, reviving regular talks under what is known as the military maritime consultation agreement. These modest but important agreements followed a throng of high-level cabinet visits to Beijing and reciprocal visits by Wang Yi, China’s foreign minister, that were meant to stabilise US-China relations. These agreements suggest that leaders in both countries can find diplomatic crosswalks to stabilise the relationship in functional areas. It also intimates that other window of cooperation such as climate change, anti-terrorism, transnational disease prevention, and poverty alleviation may be fertile ground for collaboration if leaders choose to move forward. While the modest takeaways from the meeting in San Francisco underscores that agency does have a role in bilateral relations, we should be realistic that they also reflect the deep structural challenges that exist between the United States and China. Moreover, they also represent the intractable nature of the structural challenges in the relationship, placing friends and allies of the United States and major trading partners of China, such as Australia, Japan, Canada, and Southeast Asian nations, with a difficult quandary: How to balance their economic prosperity and stability through a vibrant and beneficial trade relationship with China while maintaining a strong, comprehensive relationship with the United States as it deepens its strategic competition with China? In the US, there is bipartisan consensus that China represents a challenge to US leadership that needs to be dealt with comprehensively. Under the Biden administration, we have seen a systemic, sequential, and allied-first approach to competing with China. It has brought accolades from friends and allies and, predictably, criticism from China that Biden has not only adopted a continuation of policies towards China from the Trump administration, but that his policies are even more severe. The Biden administration has reinforced and reified its alliance partnerships with South Korea and Japan. It then enhanced its commitment to the Quadrilateral Security Dialogue (Quad) and demonstrated substantial leadership in terms of pushing back against Russia’s invasion of the Ukraine. More recently, the Biden administration forged a new trilateral partnership between South Korea, Japan, and the United States, under the so-called Camp David Principles. It also strengthened the quadrilateral security dialogue and its efforts to provide public goods to the Indo Pacific region. And we’ve gradually seen a more coherent AUKUS strategy that aims to create synergy between the UK, Australia, and the United States in the areas of AI research, quantum computing, hypersonic missiles, cyber, and importantly nuclear power submarines. Last, but not least, the adoption of the Chips Act, limiting the sale of sophisticated semiconductor chips to China and the associated technologies, suggests that the United States is not stepping down from its competition with China, but stepping up in the same way that the United States transformed every aspect of its governance following the 911 attacks. Similarly, there seems to be consensus in the Chinese political elite that the US and its allies are intent on containing China and attenuating its development. Xi Jinping’s 20th Workers Party Report at the 20th Party Congress highlighted the concerns China has about its external environment and advocated for strengthening the PLA to deal with separatist forces and external threats, while consolidating it political, social, economic, and ideological systems. Through the Belt and Road Initiative (BRI), the expansion of the BRICS and Shanghai Cooperation Organization, and the advocacy of the Global Development/ Security and Civilization Initiatives, China under the leadership of Xi Jinping is aiming to transform itself, its periphery, and the international system such that all are more conducive to China’s core interests, including preserving its political system. These realities suggest that rather than fostering a reset in bilateral relations, what we are seeing is both China and the United States taking a tactical pause in their strategic competition to amass the resources they need to compete successfully in the Mearsheimer world of great power politics and the maximisation of power. In closed-door discussions on China with Japanese, South Koreans, Australians, Canadians, Southeast and South Asians, as well as Europeans, we hear similar refrains: while China represents a “systemic challenge” in the case of the Europeans and NATO, or is a “disruptive power” in the case of Canada, or as Japan writes in its 2022 National Security Strategy, “the greatest strategic challenge in ensuring the peace and security of Japan and the peace and stability of the international community,” China is also an important and largely irreplaceable economic partner and essential player in dealing with global challenges such as climate change. The question for friends and allies of the United States is how to balance the increasingly difficult and competitive relationship between China and the United States in a way that ensures that they can continue to have strong economic relationships with China while building resilience into their economies and into their economic relationship, such that the economic weaponization of supply chains and the monopolisation of resources cannot negatively affect trading partners of China. Part of these states’ responses to protect their national interests from the structural realities of Sino-U.S. strategic competition will be a middle power diplomacy that aims to shape the competitive nature of the relationship between the US and China. This will be implemented through coordinating their diplomacy and proactively lobbying, insulating, and investing in rulemaking in the realms of security, trade, and international law alongside their like-minded ally the US, but at times also in opposition to the US. This will require investing in diplomatic resources in both the US and China, in the broader Indo-Pacific region, and at the subnational level to forge strong state to state relations to effectively lobby US policy makers to inculcate the interests of allies and friends of the US in their strategic rivalry with China. Similarly, through forging stronger relations with Chinese provincial leaders though trade and investment, middle powers and stakeholders in the US-China strategic competition may be able to have their interests reflected in a moderation of China’s approach to competition with the US.

There were smiles for the camera, handshakes, warm words and the unveiling of a couple of agreements. But beyond the optics of the first meeting in over a year between the leaders of the world’s two biggest economies, not an awful lot had changed: There was nothing to suggest a “reset” in U.S. and China relations that in recent years have been rooted in suspicion and competition. President Joe Biden hinted as much just hours after the face-to-face talks, confirming that he still considered his Chinese counterpart, Xi Jinping, a “dictator.” Beijing hit back, with foreign ministry spokesperson Mao Ning telling reporters Biden’s remark was “extremely wrong and irresponsible political manipulation.” As a scholar of U.S.-China relations, I believe the relationship between the two countries can be best described as an “enduring rivalry” – a term used by political scientists to denote two powers that have singled each other out for intense security competition. Examples from history include India and Pakistan, France and England, and the West and the Soviet Union. Over the past two centuries, such rivals have accounted for only 1% of the world’s international relationships but 80% of its wars. History suggest these rivalries last around 40 years and end only when one side loses the ability to compete – or when the two sides ally against a common enemy. Neither scenario looks likely any time soon in regards to China and the U.S. How enduring rivalries end China “is a communist country … based on a form of government totally different than ours,” Biden said after his meeting with Xi. That comment gets to the heart of why diplomacy alone cannot reset the U.S.-China relationship. Washington and Beijing are not rivals due to any misunderstanding that can be sorted out through talks alone. Rather, they are rivals because of the opposite reason: They understand each other only too well and have come to the conclusion that their respective world outlooks cannot be reconciled. The same is true for many of the issues that divide the two countries – they are framed as binary win-lose scenarios. Taiwan can be governed from Taipei or Beijing, but not both. Similarly, the East China and South China seas can be international waters or Chinese territory; Russia can be crippled or supported. For the United States, its Asian alliances are a force for stability; for China, they’re hostile encirclement. And both countries are right in their respective assessments. Diplomacy alone is insufficient to resolve a rivalry. At best, it can help manage it. When the US calls, who picks up? Part of this management of the U.S-China rivalry involves finding areas of agreement that can be committed to. And on Nov. 15, Biden and Xi announced deals over curbing China’s production of the deadly drug fentanyl and the restoring of high-level, military-to-military dialogue between the two countries. But the fentanyl announcement is very similar to the one Xi gave to then-President Donald Trump in 2019. The U.S. administration later accused China of reneging on the agreement. Similarly, committing to restarting high-level dialogue is one thing; following up on it is another. History is dotted with occasions when having an open line between Beijing and Washington hasn’t meant a whole lot in times of crisis. In 2001, when a U.S. surveillance aircraft collided with a Chinese jet over Hainan Island, Beijing didn’t pick up the phone. Likewise, during the Tiananmen Square massacre, then-President George H.W. Bush urgently tried to call his counterpart Deng Xiaoping but was unable to get through. Moreover, focusing on what was agreed to in talks also highlights what wasn’t – and is unlikely to ever be – agreed to without a substantial shift in power that forces one side to concede to the other. For example, China wants the U.S. to stop selling arms to Taiwan. But Washington has no intention of doing this, as it knows that this will make the disputed island more vulnerable to Beijing. Washington would like China to end its military displays of strength over the Taiwan Strait; Beijing knows doing so risks seeing Taiwan drift toward independence. American policymakers have long said what they want is China to “change” – by which it means to liberalize its system of governance. But the Chinese Communist Party knows that doing so means self-liquidation – every communist regime that has allowed space for alternative political parties has unraveled. Which is why American attempts to engage China are often met with suspicion in China. As former Chinese leader Jiang Zemin commented, engagement and containment policies have the same aim: to end China’s socialist system. For similar reasons, Xi has shunned attempts by the U.S. to bring China further into the rules-based international order. The Chinese leader saw what happened when Soviet leader Mikhail Gorbachev tried to integrate the Soviet Union into the Western order in the late 1980s – it only hastened the demise of the socialist entity. Instead, Xi calls for a massive military buildup, the reassertion of Chinese Communist Party control and an economic policy based on self-reliance. Actions speak louder … The encouraging words and limited agreements hammered out in the latest meeting between Xi and Biden should also not distract from the actions that continue to push the U.S. and China further apart. China’s show of force in the Taiwan Strait has been sustained for three years now and shows no sign of abating. Meanwhile, Beijing’s navy continues to harass other nations in the South China Sea. Similarly, Biden has continued the U.S. path toward military alliances aimed at countering China’s threat. It recently entered a trilateral agreement between the U.S., Japan and South Korea. And that came two years after the establishment of AUKUS, a security partnership between the the U.S., Australia and the U.K. that has similar aims. Meanwhile, the U.S. administration will continue to tighten the screws on China’s economy through investment restrictions. Biden is well aware that easy flowing money from Wall Street is helping China weather choppier economic waters of late and is keen to turn off the tap. The point of diplomacy This isn’t to say that diplomacy and face-to-face talks are pointless. They do, in fact, serve a number of interests. For both men involved, there is a domestic upside. For Biden, playing nice with China projects the image of a statesman – especially at a time when, due to U.S. positions on Ukraine and the Middle East, he is facing accusations from the political left of being a “warmonger.” And encouraging Beijing to tread softly during the U.S. election year may blunt a potential line of attack from Republicans that the administration’s China policy is not working. Meanwhile, Xi is able to showcase his own diplomatic skills and present China as an alternative superpower to the U.S. and to potentially cleave the Western business community – and perhaps even major European nations – from what he would see as the U.S. anti-China coalition. Moreover, summits like the one in San Francisco signal that both the U.S. and China are jointly committed to at least keep talking, helping ensure that a rocky relationship doesn’t descend into anything more belligerent – even it that doesn’t make them any friendlier.

“Originally published by Homi Kharas at Brookings Future Development on 21 November 2023,” “Middle-class life satisfaction rests on two pillars. The first is the idea that hard work and self-initiative will lead to prosperity. The second is that thanks to this prosperity, the children of middle-class families will enjoy even more opportunities for the good life. Both pillars are shaking.” Joining the middle class has been a ticket to the good life for two centuries now, a history I trace in a new book “The Rise of the Global Middle Class.” The American Dream, the glorious years of European reconstruction after World War II, miracle economic growth in Japan and other East Asian countries, Xi Jinping’s great rejuvenation of the Chinese nation, and India’s software revolution each brought hundreds of millions of people into the ranks of the global middle class. Today, thanks to this progress, most of the world, upwards of 4 billion people, enjoy a middle-class or better lifestyle for the first time ever. Yet, across the world there is a clear sense of disquiet in the middle class. In the U.S., Princeton economists Anne Case and Angus Deaton have documented the prevalence of “deaths of despair” due to suicides, opioids, and alcohol poisoning among non-college educated white middle-class males. The Japanese have coined a specific word, karoshi, to describe deaths due to overwork among salaried professionals. China is seeing a campaign of tang ping, or lying flat, to protest the “996” expectations of employers—9 a.m. to 9 p.m. 6 days a week. India ranks 126th out of 137 in the rankings of the 2023 World Happiness Report. What is amiss? Middle-class life satisfaction rests on two pillars. The first is the idea that hard work and self-initiative will lead to prosperity. The second is that thanks to this prosperity, the children of middle-class families will enjoy even more opportunities for the good life. Both pillars are shaking. The first is threatened by the effects of technological change on jobs. The foundations of the second are being undermined by climate change, pollution, and the destruction of nature. For most of history, technology has changed the nature of work by reducing repetitive, routine, and manual labor. During COVID-19 and the ensuing recovery, many workers changed occupations. Those with good jobs, requiring cognitive, non-routine tasks, did better than those engaged in manual, repetitive tasks. There are pathways to high-wage work, but, as my Brookings colleagues Maria Escobari and co-authors have shown, access to these paths is unequal, and that is creating stress and mental health problems for many middle-class workers. Stepping-stone occupations that serve as a bridge between low-and higher-wage occupations, and even high-wage occupations themselves, are increasingly under threat from artificial intelligence. When the Writers Guild of America went on strike in May 2023, they demanded that ChatGPT be used only as a research tool, not for actual script writing, the creative process that is at the heart of their jobs. The wobbly second pillar of middle-class satisfaction is that young people are worrying that the mass consumption of the middle-class is responsible for unsustainable levels of greenhouse gas emissions, pollution and species extinction. On current trajectories, children born today will live in a world that is at least 3 degrees warmer than pre-industrial levels. The impact of such changes, according to the best available science, is terrifying. “Is a middle-class lifestyle consistent with a livable planet? Thankfully, the answer is yes, but only if there is significant change in economic policies.” This science forces the middle class to confront an existential question. Is a middle-class lifestyle consistent with a livable planet? Thankfully, the answer is yes, but only if there is significant change in economic policies. Consider the case of Switzerland, one of the richest economies in the world. The Swiss emit only 5 tonnes of greenhouse gases per person per year, less than one-third the U.S. level. One reason is that Switzerland buys a lot of electricity from France’s nuclear reactors. But on other measures, too, such as building efficiency, moving people on electric trains and buses, and insulating homes, the Swiss middle class outperform many of their peers. True, this is not enough. The 5 tonnes must be reduced to zero by 2050, but Switzerland’s case shows that most of the current levels of carbon emissions are not tied to middle-class standards of living but simply to bad or thoughtless policies in rich countries that can be readily corrected. In similar vein, pollution is a man-made problem, not a necessary corollary of high living standards. In its current form, recycling is not effective. A new concept of a circular economy offers much more promise. The idea is to “design out” waste and pollution, recycle materials and regenerate nature. One of the first problems the circular economy concept is tackling is the issue of plastic packaging. Because of its ubiquity, plastic continues to accumulate in our oceans (and increasingly in our bodies). There are, however, alternative materials that can be used for packaging, and already the European Union is on track to make all packaging recyclable by 2030. A third area of concern is human encroachment into nature. The current global system of food production is based on expanding croplands to grow feed or as pasture for animals, especially cattle and sheep. This system has a double cost. It contributes significantly to greenhouse gas emissions, and it destroys wildlands and biodiversity. The simplest option would be to encourage the middle class to switch to a vegetarian diet. If this magically happened in the world, a land area stretching from Alaska to Tierra del Fuego could be returned to nature. In a less extreme version, if beef and lamb were taken out of our diets, an area the size of North America could be re-wilded. These examples are not offered as realistic policy options in the medium term. They do, however, serve to make a point. If the middle-class is serious about preserving nature, it will require a major change in diet. That could come about through taxes on land-intensive foods or through technology—lab-grown meat is available but only at a higher price point, and it has yet to scale. The common theme in these threats to a middle-class lifestyle is that the values of hard work and personal responsibility that are the hallmark of middle-class success are no longer enough. Policymakers are caught in trying to deliver higher living standards to their citizens and more sustainable living standards for their children. There are long-run strategies where economic growth and sustainability go hand-in-hand, but no countries have yet shown how to manage the transition onto these low-carbon pathways in a rapid, credible way. So the future is uncertain, and the middle-class, which hates uncertainty, will remain disquieted until they are clear about how to best secure the lifestyles and progress to which they have become accustomed.

How are the fluctuating tensions between Washington and Beijing over Taiwan expected to affect Israel? On January 13, William Lai, the leader of the Democratic Progressive Party (DPP), was elected president of Taiwan. A few days earlier, for the first time in four years, the United States-China Defense Policy Coordination Talks took place in Washington, marking the end of a prolonged round of tension between the two powers, which had peaked in August 2022 when the speaker of the US House of Representatives visited Taiwan. Taiwan is a major point of friction in the already tense relations between the two powers. Managing the disagreements between them has broad implications, including for Israel. The ongoing strategic rivalry between the two superpowers—the United States and China—is the most important geostrategic factor of our time. The two countries are vying for technological dominance and control over resources, that will shape our future, and infrastructure that is critical for civilian, economic, and military purposes. The United States and China are also competing for global influence by forming partnerships and trying to influence world order, including its values, institutions, and mechanisms that regulate it. Can they shape the rules of the competition between them without spiraling into a military conflict that would have devastating global consequences? Taiwan may be the most volatile flashpoint in the complicated relationship between the two powers. For China, the “reunification” with Taiwan is one of its “core interests”—a top objective and a flagship issue in its foreign policy. Although the United States has repeatedly declared that it is committed to the “one China” policy, it is also an ally of Taiwan. The United States has warned China to refrain from making unilateral, aggressive moves vis-à-vis Taiwan, while supplying Taiwan with military resources to deter China and prevent a forceful takeover. Since assuming power in 2013, President Xi Jinping of China has repeatedly emphasized Taiwan’s unification with China as a key objective. During a meeting with President Joe Biden in November 2023, President Xi said that China “prefers” a peaceful unification, but he did not dismiss the use of force. On the eve of Taiwan’s 2024 elections, President Xi further stated that unification is “inevitable.” The tensions between the powers over Taiwan had escalated following the previous elections on the island in 2020. During this period, senior American officials visited Taiwan, and the United States and Taiwan signed weapons deals in August and September of that year, followed by a marked increase in Chinese military aircraft penetrating the island’s air defense identification zone and crossing the “midline” between the island and mainland China. China’s perception of encirclement was further heightened by the United States’ strengthening of its alliances and initiatives in the Indo-Pacific region (such as QUAD, AUKUS, and IPEF) and by the increased diplomatic pressure exerted on China, through boycotting the 2022 Winter Olympics and protesting its human rights record. But even during this period, despite rising tensions, the two nations maintained ongoing communications, including the Alaska talks in March 2021—although they were notably tense—and the meeting between the presidents in November of that year. The tension peaked in April 2022, when then Speaker of the US House of Representatives Nancy Pelosi announced her intention to visit Taiwan. China strongly protested, and the White House even recommended Pelosi to reconsider her visit due to concerns about potential military escalation. Pelosi refused and proceeded with her visit in August, delivering a speech at the Taiwanese legislature and advocating for increased American–Taiwanese cooperation. In an article published in the United States before her visit, Pelosi wrote that “at a time when the world faces a choice between autocracy and democracy . . . it is essential that America and our allies make clear that we never give in to autocrats.”   In response to Pelosi’s visit, China held a large-scale military exercise that disrupted air and maritime traffic in the region and released a white paper emphasizing “The Taiwan Question and China’s Reunification in the New Era.” Furthermore, as a countermeasure to Pelosi’s visit, the Chinese Ministry of Foreign Affairs announced that it was suspending all dialogue and cooperation with the United States, including dialogues between the military commands, the ministries of defense (DPCT), and the maritime military coordination (MMCA), and cooperation in the fields of illegal immigration, criminal legal assistance, transnational crimes, counternarcotics, and climate change. In November 2022, presidents Biden and Xi met in Bali, Indonesia, in an attempt to put the relations between the two powers back on track. After the meeting, the White House issued a statement announcing that the United States will continue to compete actively with China, but the two countries must manage their competition responsibly, without letting it escalate, while maintaining open channels of communication and continuing to cooperate on global issues such as climate change, counternarcotics, debt relief, health, and food security. Regarding Taiwan, the United States reiterated its commitment to the one China policy but strongly opposed China’s aggressive actions, which violate peace and stability in the Strait and in the entire region. The Chinese also released a statement, noting that President Xi highlighted that Taiwan is a core Chinese interest and constitutes a red line that is nonnegotiable in the relations between the two countries. It was anticipated that the year 2023 would begin on a more positive tone, with US Secretary of State Antony Blinken’s scheduled visit to China in February. The visit was canceled when a Chinese balloon was discovered floating over US territory for a week until the US Air Force intercepted it. Although the White House at first tried to downplay the incident, with President Biden initially referring to it as a “minor breach” and said that the Chinese government was unaware of the issue. China claimed that a weather monitoring and research balloon had strayed off course. Public pressure, however, led the administration to cancel Blinken’s visit. Subsequently, the US Department of Commerce imposed restrictions on six Chinese companies linked to balloon and aviation technologies that are used by the Chinese military, requiring that they receive special approval to access American technology. In April and May, China retaliated at a relatively low bar by imposing sanctions on a US member of Congress who visited Taiwan and sentenced an American citizen living in Hong Kong to life imprisonment, for alleged espionage for the United States. These actions reflect the efforts of both China and the United States to take focused, restrained measures, to avoid escalating tensions. The absence of a strong reaction from China to the establishment of a select committee within the US House of Representatives, focused on examining the US–China strategic competition, suggests that China sought to prevent further escalation of the conflict.   Efforts to end the crisis and restore talks were renewed in May 2023 when the head of the CIA met with his Chinese “counterparts.” In June, US Secretary of Defense Lloyd Austin and Chinese Minister of Defense Wei Fenghe met on the sidelines of the Shangri-La conference in Singapore. Secretary of State Blinken’s anticipated visit to China took place later that month. In July, US Special Envoy for Climate John Kerry and Secretary of the Treasury Janet Yellen traveled to China, followed by a visit of US Secretary of Commerce Gina Raimondo in August. These high-level meetings concluded on a note of cautious optimism, with both sides acknowledging “progress” but not a “solution,” as the purpose of the meetings was to stabilize relations rather than to resolve the issues in dispute. In September 2023, Secretary of the Treasury Yellen and Chinese Finance Minister He Lifeng launched two new working groups on economic and financial issues. Moreover, Pentagon officials and their Chinese counterparts met and discussed the US Department of Defense’s cyber strategy, followed by a meeting of the American and Chinese presidents in San Francisco in November. The American efforts to renew the military dialogue between the two countries was initially met with refusal by China until December, when General Brown, the chairman of the Joint Chiefs of Staff, spoke with his Chinese counterpart General Liu Zhenli. In early January 2024, a few days before the elections in Taiwan, the annual Defense Policy Coordination Talks between the two countries were held at the Pentagon for the first time in four years. These developments reflect China’s acute sensitivity toward the Taiwan issue and its willingness to take significant measures against perceived violations of its One China Policy, especially by the United States. Despite numerous disputes, the growing rivalry between them, the defiant measures, and the reciprocal sanctions, these events highlight that the two powers recognize the importance of keeping channels of communication open. This dialogue is crucial for pursuing shared interests, resolving disputes, and minimizing the risk of military escalation that could have far-reaching consequences for both nations as well as the global community. The ongoing tension between the United States and China over Taiwan also has implications for Israel. First, the increasing friction between the powers has accelerated the formation of two opposing camps and has limited Israel’s ability to maneuver between them. As demonstrated (again) since the outbreak of the war between Israel and Hamas, the United States is Israel’s greatest friend and its most important strategic ally. While China is an important economic partner of Israel, its policy is not that of a friend, and its oppositional stance toward Israel has the potential to cause significant damage. The United States expects its allies to stand by its side and to align more closely with its policies vis-à-vis China, especially concerning advanced technologies and critical infrastructure. Failing to meet US expectations could strain US–Israel relations. Second, a military escalation between the United States and China would also have global economic consequences, seriously disrupting supply chains of raw materials and essential goods crucial to Israel. Finally, the US administration recently linked the military aid granted to Israel to that of both Taiwan and Ukraine, framing them as three democracies under threat. While this linkage underscores the US commitment to its allies, it also creates constraints and interdependencies. The attention and resources that the United States currently allocates to Israel and to the broader challenges in the Middle East could be compromised if the United States faces serious military crises elsewhere in the world, and this could have far-reaching impacts on Israel.