Table.Briefing: China

Spain’s EU Council Presidency + Foreign policy law + University cooperation

Dear reader,

If a country does basically the same with a law as it did without it – does it make a difference? Yes. This is now the case with China’s new foreign policy law. Like other important resolutions of the People’s Congress, it contains colorful expressions and promises, for example, China’s commitment to world peace. But it also has thorns. Should China’s interests be threatened, it gives Xi Jinping the authority to take swift countermeasures.

The existence of such highly political laws (the anti-espionage law also falls into this category) allows the leadership to act just as harshly as before and still call it the rule of law. But this is far from it. Authoritarian rule merely protects itself with tailored laws. Michael Radunski analyzes what this means for the EU and Germany.

Spain will have to deal with China’s foreign policy particularly intensively in the near future. After Covid, Pedro Sanchez hurried to be one of the first heads of government to present himself to Xi again. Now Spain will be taking over the EU council presidency. Does this mean that China will be on the agenda in the EU? Not necessarily, writes Amelie Richter. On the one hand, Prime Minister Sanchez will soon have to face an election. On the other hand, the EU has plans underway that aim for greater independence from China – and even Sanchez will not be able to stop them.

Xi is not only making his mark in legislation and foreign policy, but also in architecture. Today, Johnny Erling writes about the monumental buildings with which the ruler wants to cement his perception of history.

Your
Finn Mayer-Kuckuk
Image of Finn  Mayer-Kuckuk

Feature

Law against western hegemony

He is calling the shots – including on China’s foreign policy: Xi Jinping last week in Beijing.

China has passed a new legal basis for its foreign policy. The “Law on Foreign Relations of the People’s Republic of China” (中华人民共和国对外关系法) aims to strengthen China’s national and economic security. It consists of six chapters, was passed by the Standing Committee of the 14th National People’s Congress on Wednesday and will come into force on Saturday.

The law further cements the control of party and state leader Xi Jinping over China’s foreign policy. It gives Xi a legal basis for “countermeasures” against Western threats.

China’s ‘diplomatic struggle’

It is China’s first foreign policy law of this magnitude, peppered with many benign-sounding formulations. There is talk of equality and inclusion, fairness, development and world peace, and even universal human rights. And yet an undertone of perceived encirclement, necessary and justified defense shimmers through repeatedly.

Aptly, the state-run newspaper Global Times puts it bluntly. The law is the “legal basis for the diplomatic struggle against sanctions” and a “warning and deterrence against Western hegemony”.

Chapter I outlines the general purposes of the law:

  • Safeguard China’s sovereignty, national security and development interests;
  • Protecting the interests of the Chinese people;
  • Building China into a great modernized socialist country;
  • Rejuvenation of the Chinese nation;
  • Promoting world peace and development;
  • Building a community with a shared future for humanity.

Chapter II details the functions and powers. The central position of Xi Jinping becomes clear here, as President, as Chairman of the Central Military Commission, and not least, as General Secretary of the Communist Party. Because Article 5 states: The conduct of foreign relations by the People’s Republic of China is under the centralized and general leadership of the Communist Party of China.

Xi’s initiative before the UN system

Chapter III covers the aims and mission of foreign relations. It states: The People’s Republic of China shall maintain its external relations in order to uphold its socialist system with Chinese characteristics, safeguard its sovereignty, unification and territorial integrity, and promote its economic and social development.

In Chinese texts, the order is also always important. And so it is striking that even before the international UN system is mentioned, there is a call for implementing China’s Global Development Initiative, Global Security Initiative and Global Civilization Initiative. Foreign experts see the Global Security Initiative, in particular, as a long-term challenge to the US-led order.

Law vs. reality

Again and again, colorful expressions appear, which, however, often have little to do with reality. Just three examples.

  • Example arms control: The law states that China is committed to maintaining international arms control, disarmament and non-proliferation regimes. It is also opposed to an arms race. Sounds wonderful. In reality, however, China refuses to sign an arms control treaty.
  • Example human rights: Here, it says China respects and protects human rights. It is committed to the principle of the universality of human rights. But immediately follows the restriction, namely the upholding of human rights “in the light of the realities of the countries”. This means that if a government does not want to respect human rights, it is not obliged to.
  • Example development aid: Here it says: In providing such aid, the People’s Republic of China respects the sovereignty of recipient countries, does not interfere in their internal affairs and does not attach political conditions to its aid. But in reality, the People’s Republic insists that recipients of Chinese aid immediately sever their relations with Taiwan.

China’s sovereignty and security

Chapter IV covers the system of foreign relations. Articles 32 and 33 contain the objective of the law:

  • The State shall take law enforcement, judicial or other measures in accordance with the law to safeguard its sovereignty, national security and development interests and protect the lawful rights and interests of Chinese citizens and organizations.
  • The People’s Republic of China has the right to take measures to counteract or take restrictive measures against acts that threaten its sovereignty, national security and development interests and violate international law or fundamental norms of international relations.

Chapter V (Support for the Conduct of Foreign Relations) and Chapter VI (Supplementary Provision) complete the legislative text.

Xi’s power is consolidated

Essentially, there are no new initiatives listed in this text. It is a list of known initiatives, goals and Chinese formulations. Rather, it is about further consolidating and deepening Xi Jinping’s grip on power.

Whereas it was previously an unwritten agreement, it is now enshrined in law: Not the government, but the party determines China’s foreign policy. And the party, for the foreseeable future, is Xi Jinping. The basis is Xi’s initiatives, Xi’s thoughts and Xi’s goals.

Against the West

Equally important is the timing. The law comes at a time when Xi Jinping is increasingly asserting China’s power and influence on the international stage, and other nations – most notably the US – are expressing concern and opposition to these ambitions.

Accordingly, the law emphasizes China’s right to take “measures to counter or take restrictive measures against acts that endanger its sovereignty, national security and development interests”. China’s right to pursue its own interests and goals are beyond dispute. The problem with these formulations is the ambiguity of the chosen terminology.

This does not bode well for the already strained relations with China, as Beijing sees its sovereignty, security and development interests threatened by foreign countries on many levels: Be it the Taiwan question, Europe’s trade de-risking strategies or international consultancies in China.

  • Geopolitik

Spain takes over EU Council presidency

Pedro Sanchez: Spain’s prime minister could soon be voted out of office.

Spain will take over the EU Council presidency from Sweden on July 1. As in the past six months, the Russian aggression against Ukraine will dominate the agenda of the upcoming presidency, keeping an eye on China and its relationship with Moscow.

Madrid’s left-wing government, composed of the Spanish Socialist Workers’ Party (PSOE) and Unidas Podemos, led by Prime Minister Pedro Sánchez, was initially seen as a facilitator for China and perceived as having a favorable approach towards the country. Sánchez had met with President Xi in March, adopting a cooperative tone. However, this may change during the ongoing EU Council presidency as the Spanish government could undergo a reshuffle at the end of the following month.

Spanish parliamentary elections will be held on July 23. According to recent polls, the conservative People’s Party (PP) is leading with 34.2 percent. Together with the right-wing populist Vox party, it could potentially reach the absolute majority required for forming a government. The center-left PSOE, led by Sánchez, is polling at 26.7 percent. Sánchez will try to motivate his voters to prevent the formation of the first nationwide government involving right-wing populists.

However, PP and Vox have good chances of forming the new government in Madrid, which could also shift the stance on China. Representatives of both parties visited Taiwan in January and expressed support for closer ties with Taipei. The extent to which the relationship with the People’s Republic will become a topic in the ongoing election campaign remains unclear. Traditionally, foreign policy plays a relatively minor role in national parliamentary elections.

China no longer as attractive for Spain as in 2008

Relations between Spain and China have already cooled in recent years, according to Mario Esteban, a researcher for Asia and the Pacific at the Madrid-based think tank Real Elcano Institute. Spanish exports to China nearly doubled between 2011 and 2018 when President Xi visited Madrid, reaching a value of 6.6 billion dollars. However, Chinese investments are no longer as attractive for Spain as they were after the 2008 financial crisis, explains Esteban.

China has found other EU countries, such as Greece and Hungary, which give more support to the Chinese position on issues like the South China Sea disputes and human rights abuses in China, providing them with more backing. Prime Minister Sánchez also refused to sign a memorandum of understanding on Beijing’s Belt and Road Initiative during Xi’s visit to Spain in 2018.

This marked the beginning of a “more differentiated and selective” approach by Spain to its relations with China, writes Esteban. “All of this has initiated an era in which Spanish-Chinese relations are increasingly influenced by geopolitical considerations and third parties, especially the EU and the US.” The current Spanish government is also trying to reduce economic dependence on China.

On the agenda: Mercosur and critical raw materials

During the Council presidency, Madrid will push forward essential EU agreements aimed at increasing independence from the People’s Republic, regardless of whether it is led by the PP/Vox or the PSOE. This includes the ongoing Mercosur deal, which, if concluded, would boost the EU economy. Spain also aims to strengthen the EU’s political relationships with all Latin American countries, particularly Brazil.

The Latin American country of Chile could also play a role in another EU objective during Spain’s presidency: the Critical Raw Materials Act. Brussels needs critical raw materials such as lithium, cobalt, and rare earths to become climate-neutral by 2050. Currently, the EU relies significantly on China for the supply and processing of these materials, with 98 percent of rare earths coming from the People’s Republic.

The Critical Raw Materials Act proposed in March aims to support domestic extraction, processing, and recycling, as well as diversify the imports of these key materials, including a focus on Chile, which has significant lithium reserves. Spain aims to achieve an agreement within the EU institutions (trilogue) during its EU Council presidency.

University cooperation: creating knowledge without new risks

Scientific cooperation has shifted into the focus of risk minimization efforts. They will also form an important aspect of Germany’s national China strategy currently in the works. Researchers who work specifically on this topic have also attached a new urgency to the issue. The main reason is the ongoing reassessment of Chinese motives and strategies.

On Thursday, Matthias Stepan from Ruhr University Bochum and Sascha Klotzbucher from Comenius University Bratislava discussed this at the online event “German Research Cooperation: Creating Knowledge for or with China?” at the IfW Kiel. There was a broad consensus that future cooperation should under no circumstances be approached naively – be it in the natural sciences, the humanities or sinology itself. “We also have to examine in each individual case whether the German side is gaining a benefit from the cooperation or merely subsidizing research for China,” said Stepan.

Clear warning of greater benefits for China

In recent decades, China has also evolved from a developing country to a leading science nation. For this reason, Stepan also highlighted the great importance of China as a location for cooperation, from which Germany can certainly benefit. The prerequisite is the proper framework.

Klotzbucher, however, argued for the utmost caution here. “What is ‘only basic research’ from our point of view, the CP sees as ruling knowledge,” says Klotzbucher. It is a well-known strategy of the Chinese side to offer a partnership for mutual benefit, from which the other side, however, ultimately emerges weakened.

False sense of consideration

Subtle mechanisms of influence were also discussed. Those who work with a Chinese partner may exclude critical topics out of consideration and thus import the CCP’s restrictions on thought into the German system, Klotzbucher explains. To solve such dilemmas, he suggests cooperations that involve several partners.

However, a better understanding of Chinese tactics currently increases the feeling of being in a bind– there are no simple solutions in sight. Stepan calls for continuing successful cooperations with transparent conditions and clear objectives. New projects should be examined by committees and experts before being signed.

Stark-Watzinger questions Confucius institutes

On Thursday, a report in the German business daily Handelsblatt forced its way into the debate on scientific cooperation: The German government wants to banish the Confucius Institutes from Germany, the business paper reports. However, the quotes and arguments by Research Minister Bettina Stark-Watzinger (FDP) and Interior Minister Nancy Faeser (SPD) presented in the article reflect familiar positions.

According to Faeser’s ministry, the Chinese-funded educational institutions are to be “viewed extremely critically”. But instead of a ban, there is talk of “sensitizing” the German universities, which have incorporated the Confucius Institutes.

Universities should face up to responsibility

Stark-Watzinger, who, as an MP for the Free Democratic Party (FDP), tends to be more critical of China, insists on “consequences”, but she too does not speak of disbanding the institutes. Instead, she too talks about “questioning” them. The partner universities should “live up to their responsibility”. In reality, the Federal Minister shies away from giving direct instructions to the universities. She can only do this to a limited extent; after all, universities are the jurisdiction of individual federal states.

Germany currently has 19 Confucius Institutes. They are funded by Beijing but are affiliated with existing universities. The universities of Trier, Hamburg, Frankfurt and Dusseldorf have already parted ways with their Confucius Institutes. Faeser recommends the remaining universities to do the same.

This article is part of the event series Global China Conversations organized by the Kiel Institute for the World Economy (IfW Kiel). China.Table is the media partner of the event.

Events

July 4, 2023; 12 p.m. CEST (6 p.m. CST)
European Guanxi, Webinar: Career lunch talk: Studying in China after Covid More

July 5, 2023; 4 p.m. CEST (10 p.m. CST)
Center for Strategic International Studies, Webcast: Measurement Problems: China’s GDP Growth Data and Potential Proxies”: A Big Data China Event More

July 12, 2023; 11 a.m. CEST (5 p.m. CST)
Table.Media, Webinar: After Covid-19: Can China’s Government Manage the Comeback of the Economy? More

July 13, 2023; 10 a.m. CEST (4 p.m. CST)
EU SME Centre, Workshop (in Shanghai and online) The Power of Glam: Cosmetics Industry Trends and Policy Dynamics in China More

News

Spy balloon used US technology

The presumed Chinese spy balloon downed by the United States in early February also used US technology to gather information, according to a newspaper report. Analyses by the US Department of Defense and intelligence agencies suggest the balloon was equipped with commercially available US technology, supplemented by more specialized Chinese sensors and other equipment that could gather photos, video and other information and send it to China. This was reported by the Wall Street Journal, citing preliminary findings.

The findings support a conclusion that the craft was intended for spying, and not for weather monitoring as China had claimed. But the balloon did not seem to send data from its eight-day passage over Alaska, Canada and some other contiguous US states back to China, WSJ said. The White House and the Federal Bureau of Investigation did not immediately respond to a request for comment. rtr

  • Geopolitics
  • Spy
  • Technology

France to investigate ‘social problems’ at Shein

France’s Economy Minister Bruno Le Maire wants the French consumer protection agency DGCCRF to target Chinese fast fashion giant Shein. He asked the agency to open an investigation into several fast fashion companies, but specifically singled out Shein. Le Maire made the announcement in a video on Instagram on Wednesday evening. He said he wanted the investigation to focus on the companies’ environmental impact, consumer protection and “social problems” related to fast fashion.

“We don’t know the social conditions under which these clothes are made,” the minister said. He added there isn’t enough information about product safety on goods sold on Shein. Accordingly, Le Maire wants the General Directorate for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) to conclude its investigation by fall. There had already been a petition against Shein in France. A pop-up store of the online fashion retailer in the capital Paris received much criticism – but also a lively influx of customers.

In recent weeks, The Chinese e-commerce platform attempted to improve its image among Western audiences with influencer campaigns on social media, especially on TikTok and Instagram. For example, US-American influencers were invited to China for several videos to visit a production facility and show the supposedly unproblematic working conditions. The glossy campaign was widely trashed on social media. ari

Column

Beijing’s thousand-year transformation

By Johnny Erling
Johnny Erling schreibt die Kolumne für die China.Table Professional Briefings

Absolutist rulers often see themselves as architects of their nation. They want to shape it and leave lasting memorials of their heritage for posterity. President Xi is no exception. Since the party elected him sole ruler in 2017, he has been on an architectural roll. Xi was recently able to mark the sixth anniversary of the groundbreaking for his mega-future city Xiong’an near Beijing. The “thousand-year project” of a super-modern, complementary high-tech and eco-capital is expected to be completed by 2035. By then, according to Xi’s own plans, the People’s Republic will have risen to become a fully-fledged superpower, 15 years ahead of the original schedule. The eternal party leader hopes to live to see 2035.

The first milestones of his new era pave the way. He had a monumental museum built for the CCP’s 100th anniversary in 2021. Not far from the CCP temple, the new halls and pavilions for Beijing’s first “Academy of Historical Research” 中国历史研究院 were opened in 2019. It aims to recreate China’s “glorious past” so that today’s socialist system can draw directly from it. In his welcoming speech at the opening on 3 January 2019, Xi said: “Today’s China is the continuity and development of historical China.”

The site of the National Archives, 40 kilometers from Beijing, was still a quarry in 2019. Tsinghua architects won the tender for the construction. (Video still)

To prove this, Beijing has had four museum-like exhibition palaces for collecting, storing and researching cultural heritage hammered into the mountains in all “four directions” in just three years since 2019 – also on Xi’s orders. They are supposed to be archives for the “golden seeds” of China’s cultural and civilizational history and are also called “cultural gene banks”.

The flagship of the four museums is the “China National Archives of Publications and Culture” 中国国家版本馆, built into Beijing’s Yanshan Mountains until July 2022. Three equally opulent branches can be found in Xian 西安分馆文济阁, Hangzhou 杭州分馆文润阁 and Canton 广州分馆文沁阁.

This is what the new China National Archives looks like today. Nestled in the Yanshan Mountains, it was completed in July 2022 with all halls and a five-floor pavilion after three years of construction. It is the flagship for a total of four newly built museums in the People’s Republic for China’s cultural and civilization history. They are to become the “cultural gene bank” for the new foundation of the Marxist party. Xi Jinping visited it in June. (Video still)

As Xi says, he intends to fuse the party’s previous Marxist ideology with China’s national traditional culture to give Chinese socialism a new unique characteristic. The essence of the old culture is to breathe new life into the party and ideology, to make China systemically attractive worldwide. He now speaks of the “two links” 两个结合.

Mao, who once set out to condemn feudal, reactionary and Confucian culture, who sought to tear down the old China and build a new socialist People’s Republic, would rotate in his grave.

China’s ancient culture and Confucianism are gaining significance for the party under Xi. It was quite different in the Cultural Revolution under Mao. “Peel off the painted skin of the holy Confucius”, says this political poster.

In light of China’s supposedly uninterrupted cultural and civilizational history to this day, which would make it the oldest in the world, Xi is now dreaming of making fresh capital to renew his party. This is a highly political project. The China experts of the British Economist wrote last week: “Xi Jinping reaches into China’s ancient history for a new claim to rule.” This is because the party is stuck in a legitimacy trap. Its previous agreement of promising citizens the prospect of prosperity to achieve conformity and submission is no longer working.

So it was a carefully planned decision for Xi to spend more than two days in early June on a cultural trip inspecting the National Archives in Beijing’s mountains and the newly built history academy and to lay out his plans before cultural officials and researchers.

How times change: In 1974, any recollection of China’s ancient culture and Confucianism was considered pure poison. As secret information material, the party distributed the “Words of Chairman Mao Criticizing Confucius and Confucianism” – “to be returned after reading”.

According to CCP reporters who accompanied Xi, the new cultural archives (foreigners were apparently not yet allowed to visit them) contain exhibits numbering in the millions, including precious collections of oracular writings from ancient times, ancient tomes of historical annals and Confucian classics, bronzes with inscriptions, and even the colorful (red) People’s Republic history of civilization and revolution. Because the culture from ancient times to the present day is of a single mold. During his visit, Xi was overcome with nostalgic memories of his childhood when he came to the section of comic books from the 1950s: Picture books about traditional heroes. He claims that as a boy, he could never get enough of the “books for little people” (小人书).

Xi still knew all the titles, including a 15-volume edition about Song-era patriot soldier Yue Fei, whose mother tattooed four characters about loyalty and fidelity on his back so her son would not forget them. The booklets were “educationally significant and masterfully drawn” 很有教育意义,画小人书的人功夫也深,都是大家.

Xi also knew his way around in the revolutionary novels and movies section. He grew up with books such as “Red Rock, Red Sun”, “Red Flag” (红岩, 红日, 红旗谱). “Such excellent old works and films should be brought out, read and shown again today.”

Evidence of 5000 years of continuous history

Ideological education of the youth, usually a constant pursuit of the 70-year-old party leader, was not the actual reason for his visit this time. “I’ve wanted to come here for two years. … Now I’m coming to look around for two and a half days.” The new National Archives “is a project personally approved by me” with the purpose of preserving and protecting classical collections from ancient times “for the world’s only never-interrupted culture” 亲自批准的项目,把世界上唯一没有中断的文明继续传承下去.

He says the party and revolution succeeded because they combined Marxism with China’s realities and created a socialism with Chinese characteristics. The time in its new era of socialism would require a second fusion – with China’s culture and its more than 5000 years old civilization.

The problem is constantly on his mind. For years, he has urged archaeologists and historians to dig for evidence of the more than 5,000 years of history. He even added the issue to the agenda of his Politburo meetings. “If China’s civilization is not 5000 years old, how can we talk about Chinese characteristics? If it doesn’t exist, how could we take a socialist road with Chinese characteristics that we are so successful with today?”

Call for reflection

It is imperative to merge Chinese Marxism with Chinese culture: “Marxism and China’s excellent traditional culture come from different sources, but they are very compatible with each other … To combine them is not a simple side-by-side, not a simple physical reaction, but a profound chemical reaction that creates a new organic and unified, cultural living body.” In this way, China’s socialism would last for generations and gain worldwide popularity.

Xi does not say how this is supposed to be achieved. But he has been calling for a return to China’s traditional culture and Confucianism since 2014. He was the first CCP leader to visit Confucius’ homeland of Qufu.

Now he goes even further: “The Chinese nation … is the only civilization in the world that has existed uninterrupted since ancient times. It has formed a unique and profound value concept and civilization system. … Some concepts summarized by Laozi, Confucius, Mencius, Zhuangzi and other philosophers have endured to this day. … If China is not understood by its long historical continuity, it is impossible to understand ancient China, modern China and future China.”

A world apart again

This is how he hopes to re-explain everything: China’s perceived expansive foreign policy is actually a contribution of traditional Chinese wisdom to building a peaceful global community. Says Xi: Even the joint construction of the Belt and Road Initiative (the new Silk Road) stems from the classical concept of the “Great Community under Heaven“.

Xi’s look into China’s ancient culture and civilization has nothing to do with more opening. In 2019, for instance, the Architectural Design and Research Institute of Tsinghua University (清华大学建筑设计研究院有限公司) won the tender for the new Beijing National Archives by the Central Propaganda Department (中宣部) “after three bidding rounds against top domestic design rivals.”

Foreign companies were not involved and were apparently not invited to other Xi construction projects either. This was once different. The German architect Meinhard von Gerkan (gmp) from Hamburg was able to design the Beijing National Museum, completed in 2011, and other international architects designed Beijing’s National Library, National Theater, the Olympic buildings, and the CCTV television building.

China is once again a world apart. Its leaders intend to keep it that way in their new era.

Executive Moves

Song Shihao, previously General Manager of Domestic Securities Financing at Haitong Securities, is to become the investment firm’s new co-CEO. He shares the post with the current CEO Lin Yong.

Nora Yeung has been appointed co-head of equity capital markets (ECM) for Asia Pacific at Deutsche Bank, starting in September. She will be based in Hong Kong and report to Haitham Ghattas, Head of Capital Markets for Asia Pacific.

Is something changing in your organization? Let us know at heads@table.media!

Dessert

On the 102nd anniversary of the first National Party Congress of the Chinese Communist Party, interest focuses on the place in Shanghai where the eleven delegates met: in a simple Shikumen courtyard house, which was turned into a museum in 1961. The French Concession police broke up the Communists’ meeting at that time. Today it is a place of pilgrimage and a must-see destination for school trips and tourists.

China.Table editorial office

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    If a country does basically the same with a law as it did without it – does it make a difference? Yes. This is now the case with China’s new foreign policy law. Like other important resolutions of the People’s Congress, it contains colorful expressions and promises, for example, China’s commitment to world peace. But it also has thorns. Should China’s interests be threatened, it gives Xi Jinping the authority to take swift countermeasures.

    The existence of such highly political laws (the anti-espionage law also falls into this category) allows the leadership to act just as harshly as before and still call it the rule of law. But this is far from it. Authoritarian rule merely protects itself with tailored laws. Michael Radunski analyzes what this means for the EU and Germany.

    Spain will have to deal with China’s foreign policy particularly intensively in the near future. After Covid, Pedro Sanchez hurried to be one of the first heads of government to present himself to Xi again. Now Spain will be taking over the EU council presidency. Does this mean that China will be on the agenda in the EU? Not necessarily, writes Amelie Richter. On the one hand, Prime Minister Sanchez will soon have to face an election. On the other hand, the EU has plans underway that aim for greater independence from China – and even Sanchez will not be able to stop them.

    Xi is not only making his mark in legislation and foreign policy, but also in architecture. Today, Johnny Erling writes about the monumental buildings with which the ruler wants to cement his perception of history.

    Your
    Finn Mayer-Kuckuk
    Image of Finn  Mayer-Kuckuk

    Feature

    Law against western hegemony

    He is calling the shots – including on China’s foreign policy: Xi Jinping last week in Beijing.

    China has passed a new legal basis for its foreign policy. The “Law on Foreign Relations of the People’s Republic of China” (中华人民共和国对外关系法) aims to strengthen China’s national and economic security. It consists of six chapters, was passed by the Standing Committee of the 14th National People’s Congress on Wednesday and will come into force on Saturday.

    The law further cements the control of party and state leader Xi Jinping over China’s foreign policy. It gives Xi a legal basis for “countermeasures” against Western threats.

    China’s ‘diplomatic struggle’

    It is China’s first foreign policy law of this magnitude, peppered with many benign-sounding formulations. There is talk of equality and inclusion, fairness, development and world peace, and even universal human rights. And yet an undertone of perceived encirclement, necessary and justified defense shimmers through repeatedly.

    Aptly, the state-run newspaper Global Times puts it bluntly. The law is the “legal basis for the diplomatic struggle against sanctions” and a “warning and deterrence against Western hegemony”.

    Chapter I outlines the general purposes of the law:

    • Safeguard China’s sovereignty, national security and development interests;
    • Protecting the interests of the Chinese people;
    • Building China into a great modernized socialist country;
    • Rejuvenation of the Chinese nation;
    • Promoting world peace and development;
    • Building a community with a shared future for humanity.

    Chapter II details the functions and powers. The central position of Xi Jinping becomes clear here, as President, as Chairman of the Central Military Commission, and not least, as General Secretary of the Communist Party. Because Article 5 states: The conduct of foreign relations by the People’s Republic of China is under the centralized and general leadership of the Communist Party of China.

    Xi’s initiative before the UN system

    Chapter III covers the aims and mission of foreign relations. It states: The People’s Republic of China shall maintain its external relations in order to uphold its socialist system with Chinese characteristics, safeguard its sovereignty, unification and territorial integrity, and promote its economic and social development.

    In Chinese texts, the order is also always important. And so it is striking that even before the international UN system is mentioned, there is a call for implementing China’s Global Development Initiative, Global Security Initiative and Global Civilization Initiative. Foreign experts see the Global Security Initiative, in particular, as a long-term challenge to the US-led order.

    Law vs. reality

    Again and again, colorful expressions appear, which, however, often have little to do with reality. Just three examples.

    • Example arms control: The law states that China is committed to maintaining international arms control, disarmament and non-proliferation regimes. It is also opposed to an arms race. Sounds wonderful. In reality, however, China refuses to sign an arms control treaty.
    • Example human rights: Here, it says China respects and protects human rights. It is committed to the principle of the universality of human rights. But immediately follows the restriction, namely the upholding of human rights “in the light of the realities of the countries”. This means that if a government does not want to respect human rights, it is not obliged to.
    • Example development aid: Here it says: In providing such aid, the People’s Republic of China respects the sovereignty of recipient countries, does not interfere in their internal affairs and does not attach political conditions to its aid. But in reality, the People’s Republic insists that recipients of Chinese aid immediately sever their relations with Taiwan.

    China’s sovereignty and security

    Chapter IV covers the system of foreign relations. Articles 32 and 33 contain the objective of the law:

    • The State shall take law enforcement, judicial or other measures in accordance with the law to safeguard its sovereignty, national security and development interests and protect the lawful rights and interests of Chinese citizens and organizations.
    • The People’s Republic of China has the right to take measures to counteract or take restrictive measures against acts that threaten its sovereignty, national security and development interests and violate international law or fundamental norms of international relations.

    Chapter V (Support for the Conduct of Foreign Relations) and Chapter VI (Supplementary Provision) complete the legislative text.

    Xi’s power is consolidated

    Essentially, there are no new initiatives listed in this text. It is a list of known initiatives, goals and Chinese formulations. Rather, it is about further consolidating and deepening Xi Jinping’s grip on power.

    Whereas it was previously an unwritten agreement, it is now enshrined in law: Not the government, but the party determines China’s foreign policy. And the party, for the foreseeable future, is Xi Jinping. The basis is Xi’s initiatives, Xi’s thoughts and Xi’s goals.

    Against the West

    Equally important is the timing. The law comes at a time when Xi Jinping is increasingly asserting China’s power and influence on the international stage, and other nations – most notably the US – are expressing concern and opposition to these ambitions.

    Accordingly, the law emphasizes China’s right to take “measures to counter or take restrictive measures against acts that endanger its sovereignty, national security and development interests”. China’s right to pursue its own interests and goals are beyond dispute. The problem with these formulations is the ambiguity of the chosen terminology.

    This does not bode well for the already strained relations with China, as Beijing sees its sovereignty, security and development interests threatened by foreign countries on many levels: Be it the Taiwan question, Europe’s trade de-risking strategies or international consultancies in China.

    • Geopolitik

    Spain takes over EU Council presidency

    Pedro Sanchez: Spain’s prime minister could soon be voted out of office.

    Spain will take over the EU Council presidency from Sweden on July 1. As in the past six months, the Russian aggression against Ukraine will dominate the agenda of the upcoming presidency, keeping an eye on China and its relationship with Moscow.

    Madrid’s left-wing government, composed of the Spanish Socialist Workers’ Party (PSOE) and Unidas Podemos, led by Prime Minister Pedro Sánchez, was initially seen as a facilitator for China and perceived as having a favorable approach towards the country. Sánchez had met with President Xi in March, adopting a cooperative tone. However, this may change during the ongoing EU Council presidency as the Spanish government could undergo a reshuffle at the end of the following month.

    Spanish parliamentary elections will be held on July 23. According to recent polls, the conservative People’s Party (PP) is leading with 34.2 percent. Together with the right-wing populist Vox party, it could potentially reach the absolute majority required for forming a government. The center-left PSOE, led by Sánchez, is polling at 26.7 percent. Sánchez will try to motivate his voters to prevent the formation of the first nationwide government involving right-wing populists.

    However, PP and Vox have good chances of forming the new government in Madrid, which could also shift the stance on China. Representatives of both parties visited Taiwan in January and expressed support for closer ties with Taipei. The extent to which the relationship with the People’s Republic will become a topic in the ongoing election campaign remains unclear. Traditionally, foreign policy plays a relatively minor role in national parliamentary elections.

    China no longer as attractive for Spain as in 2008

    Relations between Spain and China have already cooled in recent years, according to Mario Esteban, a researcher for Asia and the Pacific at the Madrid-based think tank Real Elcano Institute. Spanish exports to China nearly doubled between 2011 and 2018 when President Xi visited Madrid, reaching a value of 6.6 billion dollars. However, Chinese investments are no longer as attractive for Spain as they were after the 2008 financial crisis, explains Esteban.

    China has found other EU countries, such as Greece and Hungary, which give more support to the Chinese position on issues like the South China Sea disputes and human rights abuses in China, providing them with more backing. Prime Minister Sánchez also refused to sign a memorandum of understanding on Beijing’s Belt and Road Initiative during Xi’s visit to Spain in 2018.

    This marked the beginning of a “more differentiated and selective” approach by Spain to its relations with China, writes Esteban. “All of this has initiated an era in which Spanish-Chinese relations are increasingly influenced by geopolitical considerations and third parties, especially the EU and the US.” The current Spanish government is also trying to reduce economic dependence on China.

    On the agenda: Mercosur and critical raw materials

    During the Council presidency, Madrid will push forward essential EU agreements aimed at increasing independence from the People’s Republic, regardless of whether it is led by the PP/Vox or the PSOE. This includes the ongoing Mercosur deal, which, if concluded, would boost the EU economy. Spain also aims to strengthen the EU’s political relationships with all Latin American countries, particularly Brazil.

    The Latin American country of Chile could also play a role in another EU objective during Spain’s presidency: the Critical Raw Materials Act. Brussels needs critical raw materials such as lithium, cobalt, and rare earths to become climate-neutral by 2050. Currently, the EU relies significantly on China for the supply and processing of these materials, with 98 percent of rare earths coming from the People’s Republic.

    The Critical Raw Materials Act proposed in March aims to support domestic extraction, processing, and recycling, as well as diversify the imports of these key materials, including a focus on Chile, which has significant lithium reserves. Spain aims to achieve an agreement within the EU institutions (trilogue) during its EU Council presidency.

    University cooperation: creating knowledge without new risks

    Scientific cooperation has shifted into the focus of risk minimization efforts. They will also form an important aspect of Germany’s national China strategy currently in the works. Researchers who work specifically on this topic have also attached a new urgency to the issue. The main reason is the ongoing reassessment of Chinese motives and strategies.

    On Thursday, Matthias Stepan from Ruhr University Bochum and Sascha Klotzbucher from Comenius University Bratislava discussed this at the online event “German Research Cooperation: Creating Knowledge for or with China?” at the IfW Kiel. There was a broad consensus that future cooperation should under no circumstances be approached naively – be it in the natural sciences, the humanities or sinology itself. “We also have to examine in each individual case whether the German side is gaining a benefit from the cooperation or merely subsidizing research for China,” said Stepan.

    Clear warning of greater benefits for China

    In recent decades, China has also evolved from a developing country to a leading science nation. For this reason, Stepan also highlighted the great importance of China as a location for cooperation, from which Germany can certainly benefit. The prerequisite is the proper framework.

    Klotzbucher, however, argued for the utmost caution here. “What is ‘only basic research’ from our point of view, the CP sees as ruling knowledge,” says Klotzbucher. It is a well-known strategy of the Chinese side to offer a partnership for mutual benefit, from which the other side, however, ultimately emerges weakened.

    False sense of consideration

    Subtle mechanisms of influence were also discussed. Those who work with a Chinese partner may exclude critical topics out of consideration and thus import the CCP’s restrictions on thought into the German system, Klotzbucher explains. To solve such dilemmas, he suggests cooperations that involve several partners.

    However, a better understanding of Chinese tactics currently increases the feeling of being in a bind– there are no simple solutions in sight. Stepan calls for continuing successful cooperations with transparent conditions and clear objectives. New projects should be examined by committees and experts before being signed.

    Stark-Watzinger questions Confucius institutes

    On Thursday, a report in the German business daily Handelsblatt forced its way into the debate on scientific cooperation: The German government wants to banish the Confucius Institutes from Germany, the business paper reports. However, the quotes and arguments by Research Minister Bettina Stark-Watzinger (FDP) and Interior Minister Nancy Faeser (SPD) presented in the article reflect familiar positions.

    According to Faeser’s ministry, the Chinese-funded educational institutions are to be “viewed extremely critically”. But instead of a ban, there is talk of “sensitizing” the German universities, which have incorporated the Confucius Institutes.

    Universities should face up to responsibility

    Stark-Watzinger, who, as an MP for the Free Democratic Party (FDP), tends to be more critical of China, insists on “consequences”, but she too does not speak of disbanding the institutes. Instead, she too talks about “questioning” them. The partner universities should “live up to their responsibility”. In reality, the Federal Minister shies away from giving direct instructions to the universities. She can only do this to a limited extent; after all, universities are the jurisdiction of individual federal states.

    Germany currently has 19 Confucius Institutes. They are funded by Beijing but are affiliated with existing universities. The universities of Trier, Hamburg, Frankfurt and Dusseldorf have already parted ways with their Confucius Institutes. Faeser recommends the remaining universities to do the same.

    This article is part of the event series Global China Conversations organized by the Kiel Institute for the World Economy (IfW Kiel). China.Table is the media partner of the event.

    Events

    July 4, 2023; 12 p.m. CEST (6 p.m. CST)
    European Guanxi, Webinar: Career lunch talk: Studying in China after Covid More

    July 5, 2023; 4 p.m. CEST (10 p.m. CST)
    Center for Strategic International Studies, Webcast: Measurement Problems: China’s GDP Growth Data and Potential Proxies”: A Big Data China Event More

    July 12, 2023; 11 a.m. CEST (5 p.m. CST)
    Table.Media, Webinar: After Covid-19: Can China’s Government Manage the Comeback of the Economy? More

    July 13, 2023; 10 a.m. CEST (4 p.m. CST)
    EU SME Centre, Workshop (in Shanghai and online) The Power of Glam: Cosmetics Industry Trends and Policy Dynamics in China More

    News

    Spy balloon used US technology

    The presumed Chinese spy balloon downed by the United States in early February also used US technology to gather information, according to a newspaper report. Analyses by the US Department of Defense and intelligence agencies suggest the balloon was equipped with commercially available US technology, supplemented by more specialized Chinese sensors and other equipment that could gather photos, video and other information and send it to China. This was reported by the Wall Street Journal, citing preliminary findings.

    The findings support a conclusion that the craft was intended for spying, and not for weather monitoring as China had claimed. But the balloon did not seem to send data from its eight-day passage over Alaska, Canada and some other contiguous US states back to China, WSJ said. The White House and the Federal Bureau of Investigation did not immediately respond to a request for comment. rtr

    • Geopolitics
    • Spy
    • Technology

    France to investigate ‘social problems’ at Shein

    France’s Economy Minister Bruno Le Maire wants the French consumer protection agency DGCCRF to target Chinese fast fashion giant Shein. He asked the agency to open an investigation into several fast fashion companies, but specifically singled out Shein. Le Maire made the announcement in a video on Instagram on Wednesday evening. He said he wanted the investigation to focus on the companies’ environmental impact, consumer protection and “social problems” related to fast fashion.

    “We don’t know the social conditions under which these clothes are made,” the minister said. He added there isn’t enough information about product safety on goods sold on Shein. Accordingly, Le Maire wants the General Directorate for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) to conclude its investigation by fall. There had already been a petition against Shein in France. A pop-up store of the online fashion retailer in the capital Paris received much criticism – but also a lively influx of customers.

    In recent weeks, The Chinese e-commerce platform attempted to improve its image among Western audiences with influencer campaigns on social media, especially on TikTok and Instagram. For example, US-American influencers were invited to China for several videos to visit a production facility and show the supposedly unproblematic working conditions. The glossy campaign was widely trashed on social media. ari

    Column

    Beijing’s thousand-year transformation

    By Johnny Erling
    Johnny Erling schreibt die Kolumne für die China.Table Professional Briefings

    Absolutist rulers often see themselves as architects of their nation. They want to shape it and leave lasting memorials of their heritage for posterity. President Xi is no exception. Since the party elected him sole ruler in 2017, he has been on an architectural roll. Xi was recently able to mark the sixth anniversary of the groundbreaking for his mega-future city Xiong’an near Beijing. The “thousand-year project” of a super-modern, complementary high-tech and eco-capital is expected to be completed by 2035. By then, according to Xi’s own plans, the People’s Republic will have risen to become a fully-fledged superpower, 15 years ahead of the original schedule. The eternal party leader hopes to live to see 2035.

    The first milestones of his new era pave the way. He had a monumental museum built for the CCP’s 100th anniversary in 2021. Not far from the CCP temple, the new halls and pavilions for Beijing’s first “Academy of Historical Research” 中国历史研究院 were opened in 2019. It aims to recreate China’s “glorious past” so that today’s socialist system can draw directly from it. In his welcoming speech at the opening on 3 January 2019, Xi said: “Today’s China is the continuity and development of historical China.”

    The site of the National Archives, 40 kilometers from Beijing, was still a quarry in 2019. Tsinghua architects won the tender for the construction. (Video still)

    To prove this, Beijing has had four museum-like exhibition palaces for collecting, storing and researching cultural heritage hammered into the mountains in all “four directions” in just three years since 2019 – also on Xi’s orders. They are supposed to be archives for the “golden seeds” of China’s cultural and civilizational history and are also called “cultural gene banks”.

    The flagship of the four museums is the “China National Archives of Publications and Culture” 中国国家版本馆, built into Beijing’s Yanshan Mountains until July 2022. Three equally opulent branches can be found in Xian 西安分馆文济阁, Hangzhou 杭州分馆文润阁 and Canton 广州分馆文沁阁.

    This is what the new China National Archives looks like today. Nestled in the Yanshan Mountains, it was completed in July 2022 with all halls and a five-floor pavilion after three years of construction. It is the flagship for a total of four newly built museums in the People’s Republic for China’s cultural and civilization history. They are to become the “cultural gene bank” for the new foundation of the Marxist party. Xi Jinping visited it in June. (Video still)

    As Xi says, he intends to fuse the party’s previous Marxist ideology with China’s national traditional culture to give Chinese socialism a new unique characteristic. The essence of the old culture is to breathe new life into the party and ideology, to make China systemically attractive worldwide. He now speaks of the “two links” 两个结合.

    Mao, who once set out to condemn feudal, reactionary and Confucian culture, who sought to tear down the old China and build a new socialist People’s Republic, would rotate in his grave.

    China’s ancient culture and Confucianism are gaining significance for the party under Xi. It was quite different in the Cultural Revolution under Mao. “Peel off the painted skin of the holy Confucius”, says this political poster.

    In light of China’s supposedly uninterrupted cultural and civilizational history to this day, which would make it the oldest in the world, Xi is now dreaming of making fresh capital to renew his party. This is a highly political project. The China experts of the British Economist wrote last week: “Xi Jinping reaches into China’s ancient history for a new claim to rule.” This is because the party is stuck in a legitimacy trap. Its previous agreement of promising citizens the prospect of prosperity to achieve conformity and submission is no longer working.

    So it was a carefully planned decision for Xi to spend more than two days in early June on a cultural trip inspecting the National Archives in Beijing’s mountains and the newly built history academy and to lay out his plans before cultural officials and researchers.

    How times change: In 1974, any recollection of China’s ancient culture and Confucianism was considered pure poison. As secret information material, the party distributed the “Words of Chairman Mao Criticizing Confucius and Confucianism” – “to be returned after reading”.

    According to CCP reporters who accompanied Xi, the new cultural archives (foreigners were apparently not yet allowed to visit them) contain exhibits numbering in the millions, including precious collections of oracular writings from ancient times, ancient tomes of historical annals and Confucian classics, bronzes with inscriptions, and even the colorful (red) People’s Republic history of civilization and revolution. Because the culture from ancient times to the present day is of a single mold. During his visit, Xi was overcome with nostalgic memories of his childhood when he came to the section of comic books from the 1950s: Picture books about traditional heroes. He claims that as a boy, he could never get enough of the “books for little people” (小人书).

    Xi still knew all the titles, including a 15-volume edition about Song-era patriot soldier Yue Fei, whose mother tattooed four characters about loyalty and fidelity on his back so her son would not forget them. The booklets were “educationally significant and masterfully drawn” 很有教育意义,画小人书的人功夫也深,都是大家.

    Xi also knew his way around in the revolutionary novels and movies section. He grew up with books such as “Red Rock, Red Sun”, “Red Flag” (红岩, 红日, 红旗谱). “Such excellent old works and films should be brought out, read and shown again today.”

    Evidence of 5000 years of continuous history

    Ideological education of the youth, usually a constant pursuit of the 70-year-old party leader, was not the actual reason for his visit this time. “I’ve wanted to come here for two years. … Now I’m coming to look around for two and a half days.” The new National Archives “is a project personally approved by me” with the purpose of preserving and protecting classical collections from ancient times “for the world’s only never-interrupted culture” 亲自批准的项目,把世界上唯一没有中断的文明继续传承下去.

    He says the party and revolution succeeded because they combined Marxism with China’s realities and created a socialism with Chinese characteristics. The time in its new era of socialism would require a second fusion – with China’s culture and its more than 5000 years old civilization.

    The problem is constantly on his mind. For years, he has urged archaeologists and historians to dig for evidence of the more than 5,000 years of history. He even added the issue to the agenda of his Politburo meetings. “If China’s civilization is not 5000 years old, how can we talk about Chinese characteristics? If it doesn’t exist, how could we take a socialist road with Chinese characteristics that we are so successful with today?”

    Call for reflection

    It is imperative to merge Chinese Marxism with Chinese culture: “Marxism and China’s excellent traditional culture come from different sources, but they are very compatible with each other … To combine them is not a simple side-by-side, not a simple physical reaction, but a profound chemical reaction that creates a new organic and unified, cultural living body.” In this way, China’s socialism would last for generations and gain worldwide popularity.

    Xi does not say how this is supposed to be achieved. But he has been calling for a return to China’s traditional culture and Confucianism since 2014. He was the first CCP leader to visit Confucius’ homeland of Qufu.

    Now he goes even further: “The Chinese nation … is the only civilization in the world that has existed uninterrupted since ancient times. It has formed a unique and profound value concept and civilization system. … Some concepts summarized by Laozi, Confucius, Mencius, Zhuangzi and other philosophers have endured to this day. … If China is not understood by its long historical continuity, it is impossible to understand ancient China, modern China and future China.”

    A world apart again

    This is how he hopes to re-explain everything: China’s perceived expansive foreign policy is actually a contribution of traditional Chinese wisdom to building a peaceful global community. Says Xi: Even the joint construction of the Belt and Road Initiative (the new Silk Road) stems from the classical concept of the “Great Community under Heaven“.

    Xi’s look into China’s ancient culture and civilization has nothing to do with more opening. In 2019, for instance, the Architectural Design and Research Institute of Tsinghua University (清华大学建筑设计研究院有限公司) won the tender for the new Beijing National Archives by the Central Propaganda Department (中宣部) “after three bidding rounds against top domestic design rivals.”

    Foreign companies were not involved and were apparently not invited to other Xi construction projects either. This was once different. The German architect Meinhard von Gerkan (gmp) from Hamburg was able to design the Beijing National Museum, completed in 2011, and other international architects designed Beijing’s National Library, National Theater, the Olympic buildings, and the CCTV television building.

    China is once again a world apart. Its leaders intend to keep it that way in their new era.

    Executive Moves

    Song Shihao, previously General Manager of Domestic Securities Financing at Haitong Securities, is to become the investment firm’s new co-CEO. He shares the post with the current CEO Lin Yong.

    Nora Yeung has been appointed co-head of equity capital markets (ECM) for Asia Pacific at Deutsche Bank, starting in September. She will be based in Hong Kong and report to Haitham Ghattas, Head of Capital Markets for Asia Pacific.

    Is something changing in your organization? Let us know at heads@table.media!

    Dessert

    On the 102nd anniversary of the first National Party Congress of the Chinese Communist Party, interest focuses on the place in Shanghai where the eleven delegates met: in a simple Shikumen courtyard house, which was turned into a museum in 1961. The French Concession police broke up the Communists’ meeting at that time. Today it is a place of pilgrimage and a must-see destination for school trips and tourists.

    China.Table editorial office

    CHINA.TABLE EDITORIAL OFFICE

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