China Archive

SHANGHAI—Since coming to power, the current Chinese government has steadily managed down both the rate of actual industrial expansion and expectations of future growth in the world’s second-largest economy, with a host of key economic indicators now at multiyear lows. Strikingly, however, in the face of what might be described as an industrial hard landing, job creation and income growth remain remarkably robust. There has never been a shortage of predictions of the impending collapse of the Chinese economy. But year after year, the country has defied the bears and continued its remarkable economic development faster than the majority of […]

Earlier this month, the United Kingdom and China announced the upcoming issuance of a U.K. government bond denominated in yuan, making the U.K. the first Western government to borrow in China’s currency. British and Chinese authorities noted that the funds raised by the bond will be used to add yuan to the U.K.’s foreign exchange reserves. While there was no indication as to how much London was looking to borrow, the move alone is a significant milestone for Beijing. Five years ago, the yuan had virtually no presence outside of China’s borders. But each year since, the currency has taken […]

This month, the heads of the world’s navies and coast guards converged on the Naval War College in Newport, Rhode Island, for the International Seapower Symposium (ISS). ISS assembles distinguished international naval leaders to enhance common bonds of friendship and to discuss challenges and opportunities, this time under the theme of “Global Solutions to Common Maritime Challenges.” This was the 21st iteration of ISS, which was first held in 1969. It was the first with Chinese attendance. After years of invitations that Beijing did not accept, coupled with last year’s cancellation of the event due to sequestration, the head of […]

Two Chinese warships paid a port call to Iran over the weekend, in advance of a four-day joint naval exercise with the Iranian navy that was reportedly to begin Monday. The visit highlights China’s ties with Iran, at a time when the outcome of international negotiations over Iran’s nuclear program remains uncertain. As those negotiations resume, China seems to be the least concerned of all the parties about their outcome. This apparent indifference is understandable: Iran is physically distant from China; has not threatened China directly or through supporting terrorism targeting China; and is not China’s only source of Middle […]

In July, just days before a New York court ruling put Argentina in default on a $539 million payment to creditors, Argentine President Cristina Fernandez de Kirchner signed an agreement with Chinese President Xi Jinping whereby China would loan Argentina $11 billion worth of yuan, which the latter could use to either bolster its currency reserves or pay for imported Chinese goods. The first installment of $1 billion is expected by year’s end, according to the Buenos Aires daily La Nacion. The currency swap deal, as well as a secretive deal for a Chinese satellite-tracking station in Argentina, have drawn […]

China pledged investments worth $20 billion to India and the two neighbors signed more than a dozen agreements and committed to settling their contentious border disputes during Chinese President Xi Jinping’s maiden official visit to India, which began Wednesday and ends today. Over the next five years, China promised to help India upgrade its rail system and put in place high-speed train corridors. It has also promised to invest in roads and two industrial parks in Gujarat and Maharashtra states, and to give more market access to products from India. The two nations called for better people-to-people ties and more […]

Members of Hong Kong’s Occupy Central movement marched Sunday to demand universal suffrage for the election of the city’s chief executive. In an email interview, Robert Daly, director of the Kissinger Institute on China and the United States at the Wilson Center, discussed the movement and its quest for greater democracy in Hong Kong. WPR: What are the Occupy Central movement’s objectives, and who are its main supporters? Robert Daly: Occupy Central’s goal is to ensure that the 2017 election of Hong Kong’s chief executive, which is supposed to feature “universal suffrage,” offers voters a meaningful choice. The founders’ original […]

Thanks to its comprehensive democratization and its “Miracle on the Han,” which transformed the Republic of Korea into a developed country, South Korea has realized its aspirations to become a major international player. Nonetheless, the persistent threat from a perennially belligerent North Korea, along with the challenge of having three of the world’s most powerful countries as neighbors, continues to constrain South Korea’s global opportunities. Foreign Policy Although South Korean foreign policy cannot ignore its northern neighbor, the absence of any real movement in bilateral ties has meant that Seoul’s relations with Washington, Beijing and Tokyo have seen the most […]

The Shanghai Cooperation Organization (SCO) summit in Dushanbe, Tajikistan, on Sept. 12-13 may have been one of the organization’s most important. After years of stasis, the group’s heads-of-state summit finally agreed to consider expanding the organization’s membership, which has remained fixed since its foundation in 2001. They also adopted several other important measures promoting regional development, as well as a political declaration that lent support to Russian and Chinese positions in those countries’ disagreements with the U.S. and the West more broadly. But the SCO still faces several obstacles to expanding its role in Eurasia. After the instability engendered by […]

China’s initiative to establish a “Maritime Silk Road,” which would connect China to Europe through new and upgraded ports and maritime infrastructure, received a boost this week when Singaporean Prime Minister Lee Hsien Loong backed the plan. In an email interview, Geoffrey Wade, visiting fellow at the Australian National University College of Asia and the Pacific, discussed China’s goals for the Maritime Silk Road initiative. WPR: What is the proposed route of China’s Maritime Silk Road, and how have potential partners responded to the plan? Geoffrey Wade: The “21st-century Maritime Silk Road” is a rhetorical construct promoted by China since […]

In late July, State Grid Corporation of China—the world’s largest state-owned electric utility company—bought a 35 percent stake in Italy’s CDP Reti for $2.8 billion. CDP Reti, itself a state-owned energy holding company, has its own 30-percent controlling stake in the Italian natural gas giant Snam and power grid company Terna, giving the Chinese company major interests in Italy’s energy market. State Grid’s Italian purchase added to a portfolio that includes a 25 percent stake in Portugal’s REN, which controls the two main Portuguese power grids. The purchases were the latest sign that Europe has become a battlefield for China, […]

Last month, amid the latest round of Asian regional summits in Myanmar, the United States called for a freeze in provocative acts in disputed areas in the South China Sea. While the move signaled Washington’s willingness to counter China’s growing maritime assertiveness, U.S. policy faces several structural challenges that could undermine the effectiveness of easing tensions in the South China Sea. As U.S. Secretary of State John Kerry put it at the ASEAN Regional Forum in Naypyitaw on Aug. 9, the freeze’s main objective is to manage competing territorial claims in the South China Sea by encouraging the six claimant […]