DPG China Monitor

China Monitor

Authors Brig. Arun sahgal, Sanket Joshi
Date: September 02, 2024
The monitor features developments related to China during the month and is compiled by our research team of Brig. Arun Sahgal (Retd.), Ph.D., Senior Fellow, and Sanket Joshi, Research Associate, from open-source reports and publications.

India and China held the 31st meeting of the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) in Beijing on August 29, 2024. A “frank, constructive and forward-looking” exchange of views took place between the two sides, in line with the guidelines provided by their Foreign Ministers during meetings in Astana and Vientiane in July 2024. They agreed to “narrow down the differences” and “find an early resolution of the outstanding issues” through intensified diplomatic and military talks.

On August 31, 2024, speaking at a media forum, India's Minister of External Affairs, Dr. S. Jaishankar, highlighted the challenges posed by China in trade due to its unique economic and political system. He cautioned that this is a global issue and called for an appropriate level of scrutiny of Chinese investments in the country.

Continuing their high-level strategic communication, US National Security Advisor Jake Sullivan met President Xi Jinping, Director of China’s Central Commission for Foreign Affairs Wang Yi, and CMC Vice-Chairman Zhang Youxia in Beijing on August 27-29, 2024. The two sides discussed progress on implementing the commitments made at the San Francisco Summit, including counter-narcotics cooperation, military-to-military communications, and AI safety and risk mitigation.

Chinese leaders reiterated to Sullivan that the two countries should uphold mutual respect, peaceful coexistence, and win-win cooperation to promote stable and healthy development of bilateral relations. They warned that Taiwan's independence poses the biggest threat to cross-strait stability and urged the US to adhere to one-China principle. A Global Times editorial also urged the US to “develop a correct understanding of China”.

On August 20, 2024, the European Commission made public a draft decision to impose definitive countervailing duties on the import of battery electric vehicles (BEVs) from China. Reacting to this, Josep Borrell, the EU's High Representative for Foreign Affairs and Security Policy, stressed that a trade war with China may be “unavoidable” given that Chinese-made products, including electric vehicles, are being diverted to Europe because of high tariffs in the US. Meanwhile, China filed a dispute with the WTO challenging the EU's tariffs on imports of Chinese-made electric vehicles.

China-Philippines tensions in the South China Sea continued. On August 26, 2024, the two countries’ vessels collided leading to a confrontation near the disputed Sabina Shoal (Xianbin Jiao). Amidst escalating tensions, the Commander of US Indo-Pacific Command, Admiral Samuel Paparo, spoke about Washington's intent to escort Philippine ships to the outposts in the region as part of their Mutual Defence Treaty.

President Xi reviewed China’s current economic situation, and set out economic priorities for the second half of 2024, noting that the country's economy remains stable and continues to foster new growth drivers. However, Xi cautioned that a complex external environment and insufficient domestic demand could adversely impact the economy.

To read this China Monitor, Vol. VII, Issue 8, please see the PDF attached.
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