Beijing seeks cutting-edge, but not disruptive innovation. While the People’s Bank of China (PBoC) is conducting research on digital currency, it frets that the technology, especially Facebook’s planned cryptocurrency Libra, may destabilise international monetary systems, says Wang Xin 王信 PBoC Research Bureau.
Weeks of intense criticism of the US moderated following the ‘truce’ announced at the G20 Summit in Osaka. Global Times praised the resumption of US-China trade talks, as the outcomes were in line with international expectations and served the interests of both sides.
A hugely active month saw Xi Jinping 习近平 building ties in Russia, Central Asia, Japan and North Korea, as analysts toughened their questioning of the US Indo-Pacific strategy. June extended the saga of US-China trade conflict, culminating in a claimed truce at the G20 Summit. Official commentary stayed cool: the nation will hold its path and run its own business well.
Commentators foresee an upturn in Sino-Indian relations in PM Narendra Modi’s second term. Over the past year, Xi Jinping 习近平 and Modi have met several times, most notably at an April 2018 informal summit in Wuhan.
For the last 30 years, China has been the world’s largest producer of aquatic products and for nearly 20, it has been the world’s largest exporter—in 2018, export value exceeded US$20 bn. Profitable but export-dependent, the sector has been among the hardest-hit by US–China trade tensions due to a 25 percent additional tariff covering a range of products including processed frozen tilapia.
National Health Committee (NHC) announced trial measures regulating clinical use of medical consumables (both disposable medical supplies and reusable medical devices) in secondary and tertiary medical institutions.
As the Sino-US trade war grinds on, relations with the European Union have become a focus of foreign policy interest. The European Parliament elections, with their mixed results, have prompted much discussion, challenging over-confident predictions of diplomatic gains by Beijing.
Seven central agencies released ‘Opinions on building a traceability system for meat, vegetables, traditional Chinese medicine (TCM) and other key products via inter-agency coordination’ on 6 June 2019. Supervision remains scattered among multiple agencies, but their remit is clarified.
The Huawei ban exposes tensions of China’s dual ambition: as a self-sufficient superpower and a globalist. Doubling down on indigenous innovation as long as the economy stays healthy is a viable option. To favour the globalist path, China would need to transform the Party-state.
Expanding trade in services is key to countering trade tensions and domestic economic slowdown. Despite ranking as the world’s second largest services exporter, China has a large services trade deficit, widening in April to US$24 bn.
As foreign companies and industry bodies cut ties with Huawei, Xi Jinping doubled down on indigenous innovation and self-reliance during his visit to Jiangxi on 20-22 May. Only with indigenous IPR and core technology can we make competitive products, said Xi, calling for ramping up R&D investment.
Xi’s statement to a long-awaited Conference on Dialogue of Asian Civilisations that implications of racial and civilisational superiority were ‘stupid’ was a clear riposte to State Department talk of China as ‘an alien’. Instead of ranking civilisations and claiming credit for China’s development, wrote Xinhua, the US should work with China to seek common ground to ‘crack’ the clash of civilisations myth.