The thirteenth round of Corps Commanders level talks held on October 10 were marked by shrill acrimony, with China accusing India of making unrealistic and unreasonable demands. India, in turn highlighted that the constructive suggestions made by the Indian side were not agreeable, nor did China provide any forward-looking proposals. The talks took place in the backdrop of two recent incidents of attempted transgressions by the Chinese troops in the Central Barahoti sector of Uttarakhand and the Tawang sector in Arunachal Pradesh, which further vitiated the atmosphere.
Importantly, amidst the ongoing tensions along the LAC, the National People's Congress (NPC) approved a new law that stipulates the territorial sovereignty and integrity of the People's Republic of China as sacred and inviolable. The Act has the potential of formalising Chinese control over intrusions across the LAC in support of which they are now constitutionally mandated to use force. Various commentaries point out that this is largely an India centric measure that will create tensions and make border resolution difficult.
Meanwhile, China continues its combative operational buildup and logistics in Eastern Ladakh in apparent preparation for the onset of winter. Reacting to continued deployment of the Chinese Air Force (PLAAF) at bases facing Eastern Ladakh, India enhanced its deployments including enhanced integrated surveillance to keep an eye on PLA activities across the LAC.
In an important development, China and Bhutan signed a memorandum of understanding on October 14 that provides a three-step roadmap for expediting the settlement of the outstanding border disputes.
Concerned with continuing IS-K violence in Afghanistan, the Chinese Foreign Minister Wang Yi sought assurances from the Taliban that it would make a “clean break” with the East Turkestan Islamic Movement (ETIM). China is linking humanitarian and other assistance to the Taliban-led Afghan government’s ability to control extremist groups and violence. Similarly, in Pakistan, Beijing has demanded USD 38 million as compensation from Pakistan for Chinese casualties at the Dasu Dam Project (part of CPEC) before resuming work. This is despite Pakistani PM Imran Khan and Chinese President Xi Jinping agreeing to bolster bilateral ties.
The month saw continuing tensions in US-China bilateral relations over a host of issues which included US economic policy towards China, China’s hypersonic missile test and the Taiwan issue. The US appears to be maintaining a delicate balance between a competitive China policy and efforts to ease tensions. With the deteriorating cross-strait situation marked by Chinese intrusions of the Taiwan ADIZ, information about the presence of a US special operations group and contingent of marines being deployed in Taiwan fuelled bilateral tensions. The Chinese state media claimed that the secret presence of US troops in Taiwan is not a real threat; rather, it brought Taiwan’s reunification with the mainland even closer. Reacting to the US Navy submarine USS Connecticut’s collision with an unidentified object in the South China Sea on October 02, the Chinese Defence Ministry called on Washington to provide a detailed account of the incident which it claimed was a result of provocative Freedom of Navigation Operations.
The EU appears to be struggling to settle on a unified approach over its new Indo-Pacific strategy. The AUKUS pact and French ire following the collapse of their submarine deal with Australia have highlighted the hiatus between the European and US approaches to weaving a common strategy in dealing with China. The EU and China continue to look at engagement and dialogue as a crucial modus operandi. After a phone call with President Xi Jinping (on October 15), European Council President Charles Michel announced the possibility of an EU-China summit. Meanwhile, much to the chagrin of China, the EU parliament adopted a resolution calling for strengthening ties with Taiwan.
In a major boost to Sino-Russian maritime defence cooperation, the two countries held joint naval drills in the Sea of Japan. Chinese analysts claimed that as “the West continues to build antagonistic regional security organisations like the Quad and AUKUS, the joint naval exercise will enhance Beijing and Moscow’s capability to deal with maritime security threats while safeguarding regional peace and stability”.
China’s economy continues to show signs of a slowdown, with Q3 GDP growth at 4.9 percent, down from 18.3 and 7.9 percent in the first and second quarters of 2021, respectively. However, China’s National Bureau of Statistics stressed that the economy maintained its overall recovery and growth momentum in the first three quarters. An ongoing power crisis, rising international energy prices, the outbreak of the Delta variant of the coronavirus, high commodity prices and floods are being cited as the major causes of the Q3 economic slowdown.
The importance of its Western regions is growing in China’s economic planning. Beijing issued a master plan for the construction of the ‘Chengdu-Chongqing economic circle’ as the new growth engine of China’s development. Meanwhile, President Xi Jinping emphasised the vital role of the digital economy in China’s new development paradigm. Without any reference to technology competition with the US, President Xi observed that “socialist system”, “whole country approach” and “vast market size” provide unique advantages to China to “take autonomy of the digital economy firmly in Beijing’s hands”.
China’s State Council hosted a reception marking the 72nd anniversary of the founding of People’s Republic of China. In his address on the occasion, Premier Li Keqiang emphasised “commitment to reforms toward socialist market economy”, “faithful implementation of one country two systems for Hong Kong and Macao”, “opposing and deterring Taiwan independence”, “promoting the growth of global economy”, and “realising the dream of national rejuvenation by rallying around the CPC Central Committee with President Xi Jinping at the core”.
The CPC Politburo will hold the sixth plenary session of the 19th Central Committee from November 8 to 11. Reportedly, the CPC is likely to “adopt a rare [historic] party resolution that will solidify Secretary-General Xi Jinping’s power, leaving leadership succession unclear”.
Importantly, amidst the ongoing tensions along the LAC, the National People's Congress (NPC) approved a new law that stipulates the territorial sovereignty and integrity of the People's Republic of China as sacred and inviolable. The Act has the potential of formalising Chinese control over intrusions across the LAC in support of which they are now constitutionally mandated to use force. Various commentaries point out that this is largely an India centric measure that will create tensions and make border resolution difficult.
Meanwhile, China continues its combative operational buildup and logistics in Eastern Ladakh in apparent preparation for the onset of winter. Reacting to continued deployment of the Chinese Air Force (PLAAF) at bases facing Eastern Ladakh, India enhanced its deployments including enhanced integrated surveillance to keep an eye on PLA activities across the LAC.
In an important development, China and Bhutan signed a memorandum of understanding on October 14 that provides a three-step roadmap for expediting the settlement of the outstanding border disputes.
Concerned with continuing IS-K violence in Afghanistan, the Chinese Foreign Minister Wang Yi sought assurances from the Taliban that it would make a “clean break” with the East Turkestan Islamic Movement (ETIM). China is linking humanitarian and other assistance to the Taliban-led Afghan government’s ability to control extremist groups and violence. Similarly, in Pakistan, Beijing has demanded USD 38 million as compensation from Pakistan for Chinese casualties at the Dasu Dam Project (part of CPEC) before resuming work. This is despite Pakistani PM Imran Khan and Chinese President Xi Jinping agreeing to bolster bilateral ties.
The month saw continuing tensions in US-China bilateral relations over a host of issues which included US economic policy towards China, China’s hypersonic missile test and the Taiwan issue. The US appears to be maintaining a delicate balance between a competitive China policy and efforts to ease tensions. With the deteriorating cross-strait situation marked by Chinese intrusions of the Taiwan ADIZ, information about the presence of a US special operations group and contingent of marines being deployed in Taiwan fuelled bilateral tensions. The Chinese state media claimed that the secret presence of US troops in Taiwan is not a real threat; rather, it brought Taiwan’s reunification with the mainland even closer. Reacting to the US Navy submarine USS Connecticut’s collision with an unidentified object in the South China Sea on October 02, the Chinese Defence Ministry called on Washington to provide a detailed account of the incident which it claimed was a result of provocative Freedom of Navigation Operations.
The EU appears to be struggling to settle on a unified approach over its new Indo-Pacific strategy. The AUKUS pact and French ire following the collapse of their submarine deal with Australia have highlighted the hiatus between the European and US approaches to weaving a common strategy in dealing with China. The EU and China continue to look at engagement and dialogue as a crucial modus operandi. After a phone call with President Xi Jinping (on October 15), European Council President Charles Michel announced the possibility of an EU-China summit. Meanwhile, much to the chagrin of China, the EU parliament adopted a resolution calling for strengthening ties with Taiwan.
In a major boost to Sino-Russian maritime defence cooperation, the two countries held joint naval drills in the Sea of Japan. Chinese analysts claimed that as “the West continues to build antagonistic regional security organisations like the Quad and AUKUS, the joint naval exercise will enhance Beijing and Moscow’s capability to deal with maritime security threats while safeguarding regional peace and stability”.
China’s economy continues to show signs of a slowdown, with Q3 GDP growth at 4.9 percent, down from 18.3 and 7.9 percent in the first and second quarters of 2021, respectively. However, China’s National Bureau of Statistics stressed that the economy maintained its overall recovery and growth momentum in the first three quarters. An ongoing power crisis, rising international energy prices, the outbreak of the Delta variant of the coronavirus, high commodity prices and floods are being cited as the major causes of the Q3 economic slowdown.
The importance of its Western regions is growing in China’s economic planning. Beijing issued a master plan for the construction of the ‘Chengdu-Chongqing economic circle’ as the new growth engine of China’s development. Meanwhile, President Xi Jinping emphasised the vital role of the digital economy in China’s new development paradigm. Without any reference to technology competition with the US, President Xi observed that “socialist system”, “whole country approach” and “vast market size” provide unique advantages to China to “take autonomy of the digital economy firmly in Beijing’s hands”.
China’s State Council hosted a reception marking the 72nd anniversary of the founding of People’s Republic of China. In his address on the occasion, Premier Li Keqiang emphasised “commitment to reforms toward socialist market economy”, “faithful implementation of one country two systems for Hong Kong and Macao”, “opposing and deterring Taiwan independence”, “promoting the growth of global economy”, and “realising the dream of national rejuvenation by rallying around the CPC Central Committee with President Xi Jinping at the core”.
The CPC Politburo will hold the sixth plenary session of the 19th Central Committee from November 8 to 11. Reportedly, the CPC is likely to “adopt a rare [historic] party resolution that will solidify Secretary-General Xi Jinping’s power, leaving leadership succession unclear”.
